Document:

ex_10-1.htm

    
      

      

    

    
      EXHIBIT
10.1

       

      FRAMEWORK
AGREEMENT

       

      THIS
FRAMEWORK AGREEMENT IS MADE AND ENTERED INTO AS OF THE EFFECTIVE DATE BY AND
BETWEEN:

       

      1.             
NXP SOFTWARE B.V., a private company with limited liability incorporated under
the laws of the Netherlands, having its registered office in Eindhoven, the
Netherlands, with registration number 17192886 in the trade register of the
Netherlands Chamber of Commerce and Industry for Oost-Brabant, having a
principal place of business at High Tech Campus 41, 5656 AE Eindhoven, the
Netherlands (“NXP SOFTWARE”); and

       

      2.             
LOCATION BASED TECHNOLOGIES INC., a company incorporated in the state of Nevada,
having its principal place of business at 4989 E. La Palma Avenue, Anaheim,
California, 92807 (“LBT”).

       

      WHEREAS:

       

      A.           
NXP SOFTWARE develops and licenses, amongst others, real-time software GPS
technologies;

       

      B.            
NXP SOFTWARE provides, amongst others, Internet-based GPS assistance
services;

       

      C.            
LBT develops GPS based consumer products for locating persons and/or
items;

       

      D.            
NXP SOFTWARE is willing to provide licenses and services for use of its software
GPS technologies by LBT in some or all of their consumer GPS-based
products;

       

      E.            
This Framework Agreement sets forth the principal terms under which the parties
shall conduct business;

       

      F.            
The Parties shall execute Additional Agreements for the constituent business
dealings whose terms shall be additional to those set out
herein.  These Additional Agreements shall include a Technology
License and Distribution Agreement, a Platform Development Agreement and an
Assistance Services Agreement.

       

      SECTION
1.0 – DEFINITIONS

       

      In
addition to terms defined elsewhere in this Agreement, the following terms used,
when the first letter is capitalized, shall have the meanings set forth in
Appendix A unless explicitly stipulated otherwise.  All definitions
shall apply both to their singular or plural forms, as the context may
require.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      SECTION
2.0 – RESPONSIBILITIES AND OBLIGATIONS OF LBT

       

      2.1           
Responsibilities.  LBT
shall have full responsibility for: (i) the hardware, software and mechanics of
the Products; and (ii) the user software and the software environment for the
Products.

       

      2.2          
 Marketing and
Product Support.  LBT shall

       

      (i)           Maintain
an adequate staff of sales and technical support personnel sufficient to meet
the needs of its Customers and shall ensure that such personnel are properly
trained with regard to the (integrated) Licensed Technology;

       

      (ii)          Serve
as the primary point of communication and support for Customers that have been
distributed the Products by, or on behalf of, LBT; and

       

      (iii)         Serve
as a point of contact for any necessary communications between Customers and NXP
SOFTWARE with respect to the (integrated) Licensed Technology.

       

      2.3           Professional
Conduct.  LBT shall:

       

      (i)           Maintain
high standards of professionalism;

       

      (ii)          Maintain
an adequate staff of technical personnel sufficient to integrate the Licensed
Software into Products;

       

      (iii)         Refrain
from any conduct that may damage the reputation of NXP SOFTWARE and its products
or services.

       

      SECTION
3.0 - RESPONSIBILITIES AND OBLIGATIONS OF NXP SOFTWARE

       

      3.1          
 Responsibilities.  NXP
SOFTWARE shall be responsible for furnishing LBT with the Licensed Technology
under the agreed terms of this Framework Agreement and the Technology License
and Distribution Agreement.

       

      3.2           
Professional
Conduct.  NXP SOFTWARE shall:

       

      (i)           Maintain
high standards of professionalism;

       

      (ii)          Maintain
an adequate staff of technical personnel sufficient to support LBT in its
efforts to integrate the Licensed Technology into the Platform in accordance to
the Platform Development Agreement..

       

      SECTION
4.0 –PAYMENTS; BOOKS AND RECORDS

       

      4.1          
 Currency.  All
amounts are in Euros and shall be paid in Euros.

       

      4.2          
 Wire Transfer
Payments.  LBT shall pay all amounts due by wire transfer into
the bank account designated by NXP SOFTWARE in writing.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      4.3          
 No Offset,
Withholding Or Reduction.  LBT shall not offset, withhold or
reduce any payments due to NXP SOFTWARE.

       

      4.4           
Costs, Charges, Taxes,
Duties, Import and Export Fees.

       

      (i)           All
costs, charges, taxes, duties, import and export fees, which are imposed by any
bank, governmental entity or authority on (payment of) the amounts due
hereunder, or which otherwise arise out of or are imposed on this Agreement
(collectively “Imposed Charges”), shall be borne by LBT.  LBT shall
not withhold any such Imposed Charges from payments;

       

      (ii)           If
any such governmental authority, however, imposes income taxes on any amounts
paid by LBT to NXP SOFTWARE hereunder and requires LBT to withhold such taxes,
duties or fees (collectively “Governmental Taxes”) from such payments, LBT may
deduct such Governmental Taxes from such payments provided such Governmental
Taxes are paid to the appropriate authorities;

       

      (iii)          In
the event that LBT deducts Governmental Taxes in accordance with (ii), LBT shall
promptly furnish NXP SOFTWARE with tax receipts issued by appropriate tax
authorities so as to enable NXP SOFTWARE to support a claim for credit against
income taxes which may be payable by NXP SOFTWARE and/or its Affiliates in the
Netherlands as well as to enable NXP SOFTWARE to document, if necessary, its
compliance with tax obligations in any jurisdiction outside the
Netherlands.

       

      4.5           
Interest On Late
Payments.  As from the date any amount is due hereunder until
payment thereof has been received by NXP SOFTWARE in full, LBT shall owe NXP
SOFTWARE an interest at the rate of 1.5% (one and a half percent) per month or
the maximum rate permitted by applicable law, whichever is lower.

       

      4.6          
 Keeping Books
and Records.  LBT shall keep complete and accurate books and
records relating to the use of the Licensed Technology the disposition of each
Product and the proper determination of all amounts due hereunder, and shall
keep the books and records available for a period of 5 (five) years following
such disposition.

       

      SECTION
5.0 – AUDIT

       

      5.1           
Right to
Audit.  During the Term and for a period of 3 (three) years
thereafter, NXP SOFTWARE’s designated representatives and auditors shall have
the right, upon reasonable notice, to inspect the facilities used in connection
with LBT’s undertakings hereunder and to audit all relevant books and records of
LBT to ensure LBT’s compliance with the terms and conditions of the
Agreement.

       

      5.2           Audit.  In
the event that NXP SOFTWARE’s designated representatives and auditors undertake
an audit:

       

      (i)           Such
audits will be conducted during normal business hours;

       

      (ii)          LBT
shall willingly co-operate and provide all such assistance in connection with
such audit as NXP SOFTWARE and/or its auditors may require;

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (iii)         The
audit will be conducted at NXP SOFTWARE’s expense, unless the audit reveals that
LBT has breached any terms under the Agreement in which case LBT will forthwith
reimburse NXP SOFTWARE for all reasonable costs and expenses incurred by NXP
SOFTWARE in connection with such audit.

       

      SECTION
6.0 - TERM AND TERMINATION.

       

      6.1          
 Term.  This
Framework Agreement shall commence on the Effective Date and shall remain in
force and effect for a period of 3 (three) years, unless terminated sooner as
set forth herein, with the understanding that this Framework Agreement may be
extended for a renewed term of 1 (one) year by mutual agreement in writing
between the parties, provided that such agreement is reached ultimately 3
(three) months prior to the expiration of the running contract
period.

       

      6.2          
 Termination by
NXP SOFTWARE.  Without prejudice to any other rights or
remedies NXP SOFTWARE has or may have hereunder and under the applicable law,
NXP SOFTWARE is entitled to terminate the Agreement with immediate effect by
written notice to LBT, if:

       

      (i)           LBT
fails to make any payment under this Agreement to NXP SOFTWARE when due;
or

       

      (ii)          LBT
breaches or fails to perform any of the terms or conditions of this Agreement
and:

       

                                      
a.           such breach
or failure is not capable of remedy; or

       

                                      
b.           such breach
or failure, if capable of remedy, is not remedied within 30 (thirty) days after
written notice from NXP SOFTWARE requiring such breach or failure to be
remedied; or

       

      (iii)         LBT
has otherwise come in default; unless such breach or failure, having regard to
its nature or minor importance, does not justify this termination with its
consequences; or

       

      (iv)         A
voluntary or involuntary petition in bankruptcy or winding up is filed against
LBT; or

       

      (v)          Any
proceedings in insolvency or bankruptcy (including reorganization) are
instituted against LBT; or

       

      (vi)         A
trustee or receiver is appointed over LBT; or

       

      (vii)        Any
assignment is made for the benefit of creditors of LBT; or

       

      (viii)       LBT
fails to abide the applicable export control and/or privacy laws and regulations
and does not obtain or has not obtained all required governmental licenses,
approvavals or waivers; or

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (ix)          NXP
Software is not able to obtain or continue to obtain the relevant data necessary
for the fulfillment of its obligations under the Agreement against terms and
conditions which NXP Software deems to be acceptable.

       

      6.3           
Termination by
LBT.  Without prejudice to any rights or remedies of LBT, LBT
may, by written notice to NXP SOFTWARE, terminate with immediate effect the
Agreement, without any liability whatsoever, if:

       

      (i)           NXP
SOFTWARE breaches or fails to perform any of the terms or conditions of this
Agreement and:

       

                                      
a.           such breach
or failure is not capable of remedy; or

       

                                     
b.           such breach
or failure, if capable of remedy, is not remedied within 30 (thirty) days after
written notice from LBT requiring such breach or failure to be remedied;
or

       

      (ii)           NXP
SOFTWARE has otherwise come in default; unless such breach or failure, having
regard to its nature or minor importance, does not justify this termination with
its consequences; or

       

      (iii)         A
voluntary or involuntary petition in bankruptcy or winding up is filed against
NXP SOFTWARE; or

       

      (iv)         Any
proceedings in insolvency or bankruptcy (including reorganization) are
instituted against NXP SOFTWARE; or

       

      (v)          A
trustee or receiver is appointed over NXP SOFTWARE; or

       

      (vi)         Any
assignment is made for the benefit of creditors of NXP SOFTWARE.

       

      6.4          
 Consequences of
Termination or Expiration.  Upon termination or expiration of
the Agreement:

       

      (i)           All
licenses granted to LBT under this Agreement shall immediately end;

       

      (ii)          All
payments to be made by LBT under the Agreement shall become immediately due and
payable; and

       

      (iii)         LBT
shall immediately return to NXP SOFTWARE, or destroy, so to the sole discretion
of NXP SOFTWARE, all Licensed Technology, and other Confidential Information,
including any and all copies and derivative works thereof (collectively the
“Licensed Works”);

       

      (iv)         In
the case that NXP SOFTWARE opts for the destruction of the Licensed Works, LBT
shall subsequently provide NXP SOFTWARE, within ultimately 30 (thirty) days of
such termination or expiration, a written certificate signed by a duly
authorized representative of LBT confirming LBT’s destruction as set forth
above;

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      6.5          
 No
Compensation.  LBT shall not be entitled vis-à-vis NXP SOFTWARE
to any compensation based on the expiration or termination of this
Agreement.

       

      6.6          
 Survival.  Any
expiration or termination of this Agreement for whatsoever reason shall not
prejudice the provisions which by their nature must be deemed to survive such
expiration or termination.

       

      SECTION
7.0 – CONFIDENTIALITY

       

      7.1          
 Confidentiality.

       

      (i)           Each
party agrees not to use any Confidential Information of the other party for any
purpose except to perform its obligations or exercise its rights under this
Agreement;

       

      (ii)          Each
party agrees not to disclose any Confidential Information of the other party to
third parties or to such party's employees, except to those employees or
consultants of the receiving party who are required to have the information with
a need to know;

       

      (iii)         Each
party agrees that it will take reasonable measures to protect the secrecy of and
avoid disclosure and unauthorized use of the Confidential Information of the
other party;

       

      (iv)         Without
limiting the foregoing, each party will take at least those measures that it
takes to protect its own most highly confidential information and will ensure
that its employees and independent Contractors who have access to Confidential
Information of the other party have signed a non-use and non-disclosure
agreement in content similar to the provisions hereof;

       

      (v)          Each
party will reproduce the other party's Commercial Notices on any such copies of
the Confidential Information, in the same manner in which such notices were set
forth in or on the original;

       

      (vi)         Nothing
in this Section 7.0 precludes either party from disclosing the other party’s
Confidential Information if required by law or legal process.  Before
making any disclosure as compelled by a court order, the party being required to
make the disclosure will immediately notify the other party of the compelled
disclosure and, wherever possible, give the other party an opportunity to object
to the disclosure and/or to seek and take reasonable protective (legal) measures
and remedies to preserve confidentiality.

       

      7.2          
 Confidential
Terms.  Neither party shall publicize or disclose the actual
terms of this Agreement to any third party, other than on a confidential basis
to its legal and financial advisors, without the prior written consent of the
other, except as otherwise may be required by law.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      SECTION
8.0 – LIMITATION OF LIABILITY

       

      8.1           
Exclusion.  TO
THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW AND EXCEPT FOR ANY DAMAGES
PURSUANT TO ANY BREACH OR VIOLATION OF THE PROVISIONS UNDER SECTIONS 3 OF THE
TECHNOLOGY LICENSE AND DISTRIBUTION AGREEMENT (‘LICENSE RESTRICTIONS’), SECTION
7  (‘CONFIDENTIALITY’) OR SECTION 10 (‘COMPLIANCE WITH LAWS’) OF THE
FRAMEWORK AGREEMENT, NEITHER PARTY SHALL BE LIABLE FOR ANY TYPE OF INDIRECT,
INCIDENTAL, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSS, HOWSOEVER CAUSED
OR ARISING, ON ANY THEORY OF LIABILITY, INCLUDING BUT NOT LIMITED TO ANY RECALL
COSTS, LOST PROFITS, LOST INCOME AND/OR REVENUE, LOSS OF OPPORTUNITY, LOST
PRODUCTION, LOSS OF - OR DAMAGE TO - GOODWILL AND REPUTATION, LOST SHELF-SPACE,
LOST DATA, LOST INTEREST AND LOST SAVINGS.  THIS LIMITATION SHALL
APPLY EVEN IF SUCH PARTY HAS BEEN ADVISED, OR IS AWARE, OF THE POSSIBILITY OF
SUCH DAMAGES OR LOSS.

       

      8.2          
 Limitation.  EXCEPT
FOR ANY DAMAGES PURSUANT TO ANY BREACH OR VIOLATION OF THE PROVISIONS UNDER
SECTION 2.2 (EXCLUSIVE USE OF LICENSED TECHNOLOGY WITH ASSISTANCE SERVICES’) AND
SECTION 3 (‘LICENSE RESTRICTIONS’) OF THE TECHNOLOGY LICENSE AND DISTRIBUTION
AGREEMENT, SECTION 7 (‘CONFIDENTIALITY’) OR SECTION 10 (‘COMPLIANCE WITH LAWS’)
OF THE FRAMEWORK AGREEMENT, THE AGGREGATE LIABILITY OF EITHER PARTY SHALL IN NO
EVENT EXCEED THE AMOUNT ACTUALLY RECEIVED BY NXP SOFTWARE IN FEES UNDER THE
AGREEMENT IN THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE
TO ANY SUCH LIABILITY.  LBT ACKNOWLEDGES THAT THE AMOUNTS TO BE PAID
BY LBT HEREUNDER REFLECT THIS ALLOCATION OF RISK.

       

      8.3          
 Term for
Claims.  ANY CLAIM FOR DAMAGES AGAINST NXP SOFTWARE MUST BE
BROUGHT BY LBT WITHIN 90 (NINETY) DAYS OF THE DATE OF THE EVENT GIVING RISE TO
ANY SUCH CLAIM, AND ANY LAWSUIT RELATIVE TO ANY SUCH CLAIM MUST BE FILED WITHIN
1 (ONE) YEAR OF THE DATE OF THE CLAIM.

       

      SECTION
9.0 – FORCE MAJEURE

       

      Neither
party will be in default of its obligation hereunder to the extent that its
performance is delayed or prevented by a force majeure, which is defined as an
event, circumstance, or act of a third party that is beyond the party’s
reasonable control and could not have been avoided by the exercise of due
care.  Upon the occurrence of a force majeure, the party claiming a
force majeure will provide the other Party with written notice, including the
estimated delay and actions being taken or planned to avoid or minimize the
impact of any delay.  The party claiming a force majeure will have the
burden of establishing that a force majeure has delayed delivery or performance
and to use commercially reasonable efforts to minimize the delay.  If
a force majeure event results in a delay of more than thirty (30) days, the
other party may cancel any further delivery or performance, including pending
deliveries, with no liability.

       

      SECTION
10.0 – COMPLIANCE WITH LAWS

       

      LBT shall
comply with all applicable laws, including, but not limited to export or import
controls or restrictions and privacy laws and regulations of all applicable
jurisdictions in its use of the Licensed Technology and the Products under the
Agreement, and, in particular, LBT will not distribute the Licensed Technology
and/or use and sell the Products as set forth hereunder without all required, if
any, governmental licenses, approvals or waivers.  Insofar as these
relate to the activities under the Agreement, LBT will adhere to all applicable
United States and foreign export control laws and regulations and will not
export or re-export any technical data or products to any proscribed country
listed in the U.S. Export Administration regulations, or foreign national
thereof, unless properly authorized by the U.S. Government.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      LBT shall
indemnify NXP Software, its Affiliats and its third party suppliers/licensors
against and hold NXP Softweare, its Affiliates and their suppliers harmless from
any damage or costs arising from or in connection with any violation of breach
of the provisions in this section and LBT shall reimburse all costs and expenses
incurred by NXP Software, its Affiliat and their suppliers in defending any
claim, demand, suit or proceeding arising from or in connection with such
violation or breach.

       

      SECTION
11.0 – GOVERNING LAW; DISPUTE RESOLUTION

       

      11.1          Governing Law;
Disputes.  This Agreement shall be governed by and construed in
accordance with the laws of the Netherlands without regard to any principle of
conflicts of law.  Any dispute arising hereunder shall be finally
settled under the Rules of Arbitration of the International Chamber of Commerce,
by three (3) arbitrators, appointed in accordance with the said Rules; provided,
however, that each party may enforce its or its Affiliates’ intellectual
property rights in any court of competent jurisdiction, including but not
limited to injunctive relief.  The arbitration proceedings shall be
conducted in the English language and shall take place in Amsterdam, the
Netherlands.  The arbitrator shall not have the right to issue
injunctive relief.  All awards may if necessary be enforced by any
court having competent jurisdiction.  The parties undertake and agree
that all arbitral proceedings conducted under this Section shall be kept
confidential in accordance with the confidentiality obligations set forth
herein, unless otherwise mutually agreed by the parties under a written,
stipulated protective order for such arbitration, and all information,
documentation, materials in whatever form disclosed in the course of such
arbitral proceeding shall be used solely for the purpose of those
proceedings.

       

      SECTION
12.0 – MARKETING

       

      12.1          Publicity.  Each
party shall acknowledge the other party in its publicity as regards parties’
cooperation hereunder, including by way of issuing at least one (1) press
release ultimately at the launch of the first Product.

       

      12.2          Customer
Reference.  LBT hereby acknowledges and agrees that during the
Term of the Agreement NXP SOFTWARE shall be entitled with LBT’s prior written
consent on a case-by-case basis:

       

      (i)           to
use LBT's name and LBT's logo(s); and

       

      (ii)          disclose
that LBT is a customer of NXP SOFTWARE

       

       in
NXP SOFTWARE’s press releases, advertising, promotion and other public
disclosures in connection with NXP SOFTWARE's products and services; provided,
however, that, without LBT's express prior written permission to that effect,
such use and/or disclosure shall not indicate that LBT in any way endorses any
NXP SOFTWARE's products or services.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      LBT
hereby agrees that, upon LBT’s public disclosure of any Product containing the
Licensed Technology, NXP SOFTWARE shall be entitled to also disclose the nature
of NXP SOFTWARE's involvement in, and contribution to, said
Product.

       

      SECTION
13.0 - ASSIGNMENT

       

      13.1          Assignment.

       

      (i)           LBT
shall not assign its rights or obligations under the Agreement without the prior
written consent of NXP SOFTWARE, which consent shall not be unreasonably
withheld by NXP SOFTWARE;

       

      (ii)           In
the event that NXP SOFTWARE withholds consent for LBT to assign its rights or
obligations under the Agreement, NXP SOFTWARE shall serve written notice of
termination of the Agreement and the Agreement shall terminate 120 (one hundred
and twenty) days after such notice or earlier as agreed between the Parties in
writing;

       

      (iii)         Any
purported assignment without such consent shall be void and have no force or
effect;

       

      (iv)         NXP
SOFTWARE shall be entitled to assign its rights and obligations under the
Agreement to a successor of all or substantially all of the assets of the
assigning party relating to its software GPS business if the successor expressly
assumes in writing the terms, conditions and obligations of the assigning party
hereunder;

       

      (v)          Subject
to the foregoing, the Agreement shall bind and inure to the benefit of the
respective parties hereto and their successors and assigns;

       

      (vi)         In
the event of any assignment or attempted assignment by LBT without the prior
written consent of NXP SOFTWARE, NXP SOFTWARE may terminate the Agreement by
written notice to LBT with immediate effect and all Licensed Technology,
Confidential Information and related materials shall be returned to NXP SOFTWARE
within 10 (ten) days after such notification.

       

      13.2          Change of
Control.  Without limiting the generality of the foregoing, a
Change of Control over LBT shall be deemed an assignment of the Agreement by LBT
for the purpose of this Section 13.

       

      SECTION
14.0 – MISCELLANEOUS

       

      14.1          Relationship.  The
parties hereto intend to establish a business relationship as independent
contractors with neither party having authority to act as an agent or legal
representative of the other to create any obligation, express or implied, on
behalf of the other.  No principal/agent, joint venture or partnership
relationship is created between them by the Agreement or any part
thereof.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      14.2          Injunctive
Relief.  LBT acknowledges that a breach of its obligations
under the Agreement may cause irreparable damage for which recovery of monetary
damages would be inadequate, and that, in addition to any and all remedies
available at law, NXP SOFTWARE shall be entitled to seek injunctive relief to
protect its rights and interest under the Agreement.

       

      14.3          No
Waiver.  The failure on the part of either party to exercise,
or any delay in exercising, any right or remedy arising from the Complete
Agreement shall not operate as a waiver thereof; nor shall any single or partial
exercise of any right or remedy arising there from preclude any other or future
exercise thereof or the exercise of any other right or remedy arising from the
Complete Agreement or by law.

       

      14.4          Headings.  The
headings and captions to sections, clauses, sub clauses and Appendices of the
Complete Agreement are for reference only and shall not affect the construction
or interpretation of the Complete Agreement.

       

      14.5          Communications.  All
notices or communications to be given under the Complete Agreement shall be in
writing and shall be deemed to be validly given by delivery thereof to its
recipient, if

       

      (i)           delivered
upon hand delivery; or

       

      (ii)          by
deposit in the mail of the home country of the party, postage prepaid, by
certified, registered or first class mail or equivalent; or

       

      (iii)         by
nationally recognized overnight courier service (e.g. FedEx, UPS, DHL)
prepaid,

       

      all of
which are addressed to the parties at their address set forth on the signature
page(s) below or such other address that a party may notify the other party from
time to time, in accordance with this clause.  Any written notice is
deemed to have been received, if sent by hand delivery, certified or registered,
first class (or equivalent) mail or prepaid overnight courier, at the time of
its delivery.

       

      14.6          Severability.  In
the event that any provision(s) of the Agreement shall be, or shall be held,
void or unenforceable by a court of competent jurisdiction or by any future
legislative or administrative action, the other provisions shall remain in full
force and effect and enforceable.  In such event the parties hereto
shall forthwith discuss and reasonably agree on a new provision replacing such
void or unenforceable provision which gets as close as possible in terms of
economic and legal effect to the void or unenforceable provision.

       

      14.7          Execution.  The
Agreement may be executed in counterparts (and may be exchanged by fax or e-mail
when signed), each of which shall be deemed to be an original, and all of such
counterparts shall together constitute one instrument.

       

      14.8          No Other
Licenses.  Any rights not expressly granted under the Agreement
are deemed withheld.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      148           Amendments.  The
terms and conditions of the Agreement may not be modified or amended except by
written agreement which states that it is such a modification or amendment
hereof, and is signed by an authorized representative of each party
hereto.

       

      14.9          Entire
Understanding.  The Agreement, including its Appendices and the
documents referred to herein, constitutes the entire agreement between the
parties with respect to such subject matter.

       

      IN
WITNESS WHEREOF, the parties have executed this Agreement by their duly
authorized officers as of the Effective Date.

       

      
        
          	LOCATION
      BASED TECHNOLOGIES INC.	 	 	NXP
      SOFTWARE B.V.	 
	 	 	 	 	 
	
                  By:
      /s/ Joseph F. Scalisi

                	 	 	
                  By:
      /s/ Stefan Franco 

                	 
	
                  Name:
      Joseph F. Scalisi

                	 	 	
                  Name:
      Stefan Franco 

                	 
	
                  Title:
      Chief Development Officer

                	 	 	
                  Title:
      Financial Director

                	 
	Date:  February
      28, 2008	 	 	Date:  29
      February 2008	 

        

      

       

      
        
          	
                  Address
      for notices:

                	 	 	
                  By:
      /s/ K. H. Van Holten 

                	 
	
                   

                	 	 	
                  Name:
      K. H. Van Holten 

                	 
	
                  Location
      Based Technologies Inc.

                	 	 	
                  Title:
      Director

                	 
	4989
      E. La Palma Avenue	 	 	Date:  29
      February 2008	 
	Anaheim	 	 	 	 
	California
      92708	 	 	By:
      /s/ P.H.J. De Koning	 
	United
      States	 	 	      
                  Name:
      P.H.J. De Koning

                	 
	      
                  Fax
      no: +1 (714) 200-0287

                	 	 	      
                  Title:
      Director

                	 
	 	 	 	Date:  29
      February 2008	 
	 	 	 	 	 
	 	 	 	Address
      for notices:	 
	 	 	 	 	 
	 	 	 	Attention:
      Stefan Franco	 
	 	 	 	NXP
      Software B.V.	 
	 	 	 	High
      Tech Campus 41	 
	 	 	 	5656
      AE	 
	 	 	 	Eindhoven	 
	 	 	 	      
                  Fax
      no: +31 40 27 25500

                	 

        

      

       

      
      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      APPENDIX
A

       

      DEFINITIONS

       

      “Acceptance
Test” the acceptance test described in the Statement of Work.

       

      “Additional
Agreements” the Technology License and Distribution Agreement, the Assistance
Services Agreement and the Platform Development Agreement entered into by the
Parties.

       

      “Affiliate”
with respect to a party, any corporation, company, or other legal entity in
which such party owns or controls, directly or indirectly, more than 50% (fifty
percent) of the shares entitled to vote for the election of directors or other
persons performing similar functions.

       

      “Agreement”
this Framework Agreement, the Technology License and Distribution Agreement, the
Assistance Services Agreement and the Platform Development Agreement including
all Appendices thereto which form an integral part therof.

       

      “Appendix”
an appendix to this Agreement.

       

      “Assistance
Service” an Internet based service required to perform GPS location processing
by NXP SOFTWARE’s technology, as described in Exhibit SA1 of the Assistance
Service Agreement.

       

      “Background
Intellectual Property Rights” any and all Intellectual Property Rights, other
than Foreground Intellectual Property Rights: (a) which are owned or controlled
by a party or any of its Affiliates at the effective date or (b) in respect of
which ownership or control is acquired by a party or any of its Affiliates
during the Term of the Agreements as a result of: (i) activities conducted
outside the cooperation of the parties according to the Agreement or (ii) any
transaction with a third party.

       

      “Cached
Proxy Assistance Service” an Internet based service to End Users that provides
on a proxy basis cached data as provided by the Assistance Service to
Products.

       

      “Change
of Control” with respect to a party, the occurrence of any of the following
events:

       

      (i)            
any consolidation or merger of such party with or into any other entity in which
the holders of such party’s outstanding shares immediately before such
consolidation or merger do not, but immediately after such consolidation or
merger, do retain stock representing a majority of the voting power of the
surviving entity or stock representing a majority of the voting power of an
entity that wholly owns, directly or indirectly, the surviving
entity;

       

      (ii)          
 the sale, transfer or assignment of securities of such party representing
a majority of the voting power of all of such party’s outstanding voting
securities to an acquiring party or group;

       

      (iii)          
the sale of all or substantially all of such party’s assets; or

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      (iv)          the
transfer, directly or indirectly, of 50% (fifty percent) or more of the such
party’s outstanding shares entitled to vote for the election of directors or
other persons performing similar functions, or by equivalent change in ownership
or control of such party if a partnership or other non-corporate
form.

       

      “Confidential
Information” information not generally known to the public, whether of a
technical, business or other nature that relates to this Agreement, which is
marked or designated “confidential” or “proprietary” or other words of equal
import, at the time of initial disclosure, or which, in good faith by its nature
and the surrounding circumstances, ought to be treated as “confidential” and/or
“proprietary”.  Confidential Information may be disclosed in written
or other tangible form (including information in computer software or held in
electronic storage media) or by oral, visual or other
means.  Confidential Information will not include any information
which:

       

      (v)           was
publicly known and made generally available in the public domain prior to the
time of disclosure by the disclosing party;

       

      (vi)           becomes
publicly known and made generally available after disclosure by the disclosing
party to the receiving party through no action or inaction of the receiving
party;

       

      (vii)          is
already in the possession of the receiving party at the time of disclosure by
the disclosing party as shown by the receiving party's files and records
immediately prior to the time of disclosure;

       

      (viii)         is
obtained by the receiving party from a third party without a breach of such
third party's obligations of confidentiality; or

       

      (ix)           is
independently developed by the receiving party without use of or reference to
the disclosing party's Confidential Information, as shown by documents and other
competent evidence in the receiving party's possession.

       

      (x)           
Confidential Information may include third party’s confidential
information.  The Licensed Software, Documentation and any other
information provided by NXP SOFTWARE or any of its Affiliates to LBT under this
Agreement is hereby designated as Confidential Information of NXP
SOFTWARE.

       

      “Commercial
Notice” a notice, legend or marking of copyright, proprietary information,
restricted or proprietary rights.

       

      “Customer”
any party that LBT distributes the Products to pursuant to an
agreement.

       

      “Deliverables”
the deliverables as described in the Statement of Work.

       

      “Documentation”
all documentation relating to the Licensed Software, including but not limited
to manuals, instructions, specifications, user’s guides, technical, training and
programmer guides for the Licensed Software that NXP SOFTWARE, or any of its
Affiliates, provides with the Licensed Software.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      “Effective
Date” 27th February 2008

       

      “End
User” a person or business enterprise which acquires the Licensed Product for
its ordinary personal purposes or use in its normal business operations and not
for resale, distribution or transfer to others.

       

      “Foreground
Intellectual Property Rights” any Intellectual Property Rights resulting
directly or indirectly out of this Agreement.

       

      “Framework
Agreement” the framework agreement entered into by the Parties.

       

      “Intellectual
Property Rights” or “IPR” all present and future industrial and intellectual
property rights, including, but not limited to, patents, utility models, trade
and service marks, trade names, mask work rights, rights in domain names, right
in designs, copyrights, moral rights, topography rights, rights in databases,
trade secrets and know-how, in all cases whether or not registered or
registrable and including all registrations and applications for registration of
any of these and rights to apply for the same, as well as any renewals,
extensions, combinations, divisions, continuations or reissues thereof, rights
to receive equitable remuneration in respect of any of these and all rights and
forms of protection of a similar nature or having equivalent or similar effect
to any of these anywhere in the world.

       

      “Licensed
Software” the software provided by NXP SOFTWARE which is part of the Licensed
Technology.

       

      “Licensed
Technology” the technology provided by NXP SOFTWARE, including the Licensed
Software and the Documentation as described in Exhibit TLDA1, and all copies
thereof and all updates and modifications thereto.

       

      “Milestone”
a milestone as described in the Statement of Work..

       

      “Modification”
a change, modification, reconfiguration, alteration, improvement, translation,
transformation, derivative work, and/or enhancement of the Licensed
Technology.

       

      “Object
Code” all or any portion of the machine-readable or machine language version of
the Licensed Software.

       

      “Open
Source License Terms” terms in any license for software which require, as a
condition of use, modification and/or distribution of such software or other
software incorporated into, derived from or distributed with such software (a
“Work”), any of the following:

       

      (i)            
the making available of source code or design information regarding the
Work;

       

      (ii)           
the granting of permission for creating derivative works regarding the Work;
or

       

      (iii)           the
granting of a royalty-free license to any party under intellectual property
rights regarding the Work.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      By means
of example and without limitation, Open Source Licensing Terms include the
following licenses or distribution models: (i) the GNU General Public License
(GPL) or Lesser/Library GPL (LGPL), (ii) the Artistic License (e.g. PERL), (iii)
the Mozilla Public License, (iv) the Common Public License, (v) the Sun
Community Source License (SCSL), (vi) the Sun Industry Standards Source License
(SISSL), and (vii) the Open Software License.

       

      “Open
Source Software” any software that is licensed under Open Source Licensing
Terms.

       

      “Parties”
NXP SOFTWARE and LBT collectively.

       

      “Product”
a consumer product developed and sold by LBT.

       

      “Reverse
Engineer” to reverse assemble, decompile, disassemble or otherwise attempt to
derive the Source Code or algorithmic nature of an item.

       

      “Service
Infrastructure” the physical infrastructure that provides the Assistance
Service, including by not limited to, the servers, server-side software and
operating systems and IP data network infrastructure.

       

      “Service
Outage” the event that NXP SOFTWARE’s Assistance Service is not available for a
one (1) hour time period and such period is not during a Service Maintenance
Downtime.

       

      “Service
Maintenance Downtime” a period of time during which the Assistance Service will
be unavailable whilst NXP SOFTWARE undertakes maintenance or upgrading of the
Assistance Service.

       

      “Source
Code” a compilable and/or human readable version of software, including without
limitation, all comments and procedural code, associated flow charts, concepts,
algorithms, technology, other written instructions.

       

      “Specification”
a functional specification with performance requirements.

       

      “Statement
of Work” the statement of work attached to the Platform Development Agreement as
Exhibit PDA1.

       

      “Technical
Standard” any technical specification promulgated for the purpose of widespread
adoption.

       

      “Technology
Platform” the platform that forms the basis of LBT’s Product; specifically an
NXP Semiconductors cellular chipset with the Licensed Software
integrated.

       

      “Third
Party Assistance Service” a GPS assistance service, either Internet based or
otherwise, that provides assistance data that can be used by the Licensed
Software to perform GPS location processing.ex_10-2.htm

    
      

      

    

    
      EXHIBIT
10.2

       

      TECHNOLOGY
LICENSE AND DISTRIBUTION AGREEMENT

       

      THIS
TECHNOLOGY LICENSE AND DISTRIBUTION AGREEMENT IS MADE AND ENTERED INTO AS OF THE
EFFECTIVE DATE BY AND BETWEEN:

       

      1.             
NXP SOFTWARE B.V., a private company with limited liability incorporated under
the laws of the Netherlands, having its registered office in Eindhoven, the
Netherlands, with registration number 17192886 in the trade register of the
Netherlands Chamber of Commerce and Industry for Oost-Brabant, having a
principal place of business at High Tech Campus 41, 5656 AE Eindhoven, the
Netherlands (“NXP SOFTWARE”); and

       

      2.            
 LOCATION BASED TECHNOLOGIES INC., a company incorporated in the state of
Nevada, having its principal place of business at 4989 E. La Palma Avenue,
Anaheim, California, 92807 (“LBT”).

       

      WHEREAS:

       

      A.           
NXP SOFTWARE develops and licenses, amongst others, real-time software GPS
technologies;

       

      B.           
 NXP SOFTWARE provides, amongst others, Internet-based GPS assistance
services;

       

      C.           
 LBT develops GPS based consumer products for locating persons and/or
items;

       

      D.           
 NXP SOFTWARE is willing to provide licenses and services for use of its
software GPS technologies by LBT in some or all of their consumer GPS-based
products;

       

      E.          
  The Parties have executed a Framework Agreement that sets forth the
principal terms under which the parties shall conduct business;

       

      F.            
This Technology License and Distribution Agreement sets forth the additional
terms under which NXP Software shall license the Technology to LBT.

       

      SECTION
1.0 – FRAMEWORK AGREEMENT

       

      The terms
of the Framework Agreement shall apply to this Technology License and
Distribution  Agreement  mutatis mutandis.  In the
event that any term or clause herein shall be in conflict with any term or
clause within the Framework Agreement then the terms of this Technology License
and Distribution Agreement shall prevail for the exclusive and limited scope of
this Technology License and Distribution  Agreement.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      SECTION
2.0 – LIMITED LICENSE

       

      2.1         
  License to
Licensed Technology.  Subject to the terms and conditions of
this Agreement, NXP SOFTWARE hereby grants to LBT, and LBT hereby accepts from
NXP SOFTWARE, a non-exclusive, personal, non-transferable worldwide copyright
license, without the right to sublicense, to:

       

      (i)           test
or evaluate the Licensed Technology;

       

      (ii)          use
and reproduce the Licensed Technology for integration of the Licensed Software,
in Object Code form only, in the Products;

       

      (iii)         test,
evaluate, market, demonstrate, promote, lend, give or sell these Products, to
(potential) Customers;

       

      (iv)         distribute
these Products with the Licensed Technology integrated therein to
Customers;

       

      (v)          use
the Licensed Technology for maintaining and supporting its Products with the
integrated Licensed Technology including, but not limited to:

       

                                      
a.    performing
error-correction and Customer support on said Products;

       

                                      
b.    testing and
evaluating the (performance of) the Licensed Technology; and

       

                                       c.    training its
(support) engineers;

       

      (vi)         use
the Documentation only within LBT’s organization solely in connection with the
rights granted above; and

       

      (vii)        copy,
modify and create derivative works from the Documentation, for example by
creating technically accurate subsets and supersets thereof or translations it
into other languages; and distribute such Documentation (in its original form or
as modified by LBT as provided above) with the Products distributed by LBT as
permitted under this Agreement.

       

      2.2.           Exclusive Use of Licensed
Technology with Assistance Service.  The license granted
hereunder is granted solely for  the use of the Licensed Technology in
connection with the Assistance Services to be provided by NXP Software to LBT in
accordance to the Assistance Services Agreement.  No license is
granted whatsoever for use of the Licensed Technology without the Assistance
Services provided by NXP Software.  In the event LBT does not
exclusively uses or ceases to exclusively use NXP Software’s Services in
accordance to the Assistance Services Agreement the license granted hereunder
will terminate with immediate effect.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      2.3           
Beneficiaries.

       

      2.3.1       Contractors
It is agreed that the rights granted to LBT under sections 2.1 (i), (ii), (iii),
(v), (vi) and (vii) above shall inure also to the benefit of any Contractor
engaged by LBT but only to the extent and for the time of their involvement as
regards LBT’s Products.

       

      2.3.2       Distributors.  It
is agreed that the rights granted to LBT under sections 2.1 (iii) and (iv) above
shall inure also to the benefit of any Distributor engaged by LBT but only to
the extent and for the time  of their involvement as regards LBT’s
Products.

       

      2.3.3       Third
Party Compliance.  LBT shall remain responsible for the due and proper
compliance with the terms and conditions of this Technology License and
Distribution Agreement by each Contractor, Distributor and Customer and
acknowledges that it may be held liable to NXP SOFTWARE for damages incurred by
NXP SOFTWARE to the extent caused by any such non-compliance
therewith.

       

      2.4          
 Third Party
Beneficiary.  LBT will make sure that in its agreements with
Contractors and Distributors NXP Software will be appointed as a third party
beneficiary in such a way that NXP Software will be granted the same rights as
LBT as regards claim towards the LBT’s Contractors and Distributors if they
breach their agreements with LBT.

       

      SECTION
3.0 - LICENSE RESTRICTIONS.

       

      3.1           
Restrictions.  The
Licensed Technology is licensed (under copyright only) and is not
sold.  Except as expressly permitted under Section 2.0 or by mandatory
applicable law in spite of this provision, LBT agrees not to, and agrees not to
permit any third party to:

       

      (i)           copy,
reproduce or distribute Licensed Technology;

       

      (ii)          assign,
sublicense, lease, rent, loan, transfer, disclose, or otherwise make available
the Licensed Technology;

       

      (iii)         modify,
adapt, alter, translate, or create Modifications from any portion of the
Licensed Technology;

       

      (iv)         Reverse
Engineer the Licensed Technology;

       

      (v)          otherwise
produce its own version of the Licensed Technology (without copying the Source
Code thereof); and

       

      (vi)         remove
or circumvent the protection of the Licensed Technology.

       

      3.2          
 No Other Rights
or Licenses.  Other than the rights explicitly granted to LBT
under the Agreement, no other licenses are granted, or implied by estoppel or
otherwise, under any Intellectual Property Rights of NXP SOFTWARE and/or its
Affiliates or any intellectual property residing in the Licensed Technology or
any other Confidential Information furnished by NXP SOFTWARE.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      3.3          
 Exclusions.  Notwithstanding
anything to the contrary herein, this Agreement shall not be construed or
interpreted as:

       

      (i)           imposing
on NXP SOFTWARE and/or its Affiliates or any of its or their third party
suppliers any obligation to furnish any manufacturing or technical information
except as expressly required under this Agreement; or

       

      (ii)          conferring
any license, right or immunity, either directly or indirectly, to LBT or to any
third party acquiring any Licensed Technology or other Confidential Information
furnished by NXP SOFTWARE or any of its Affiliates under any of its and/or their
Intellectual Property Rights or under any other intellectual property residing
in the Licensed Technology or any other Confidential Information furnished by
NXP SOFTWARE: (a) for the combination of such Licensed Technology or other
Confidential Information with one or more other items (including items acquired
from NXP SOFTWARE and/or its Affiliates) even if such items have no substantial
use other than as part of such combination; (b) covering a Technical Standard,
whether proprietary or open; or (c) with respect to which NXP SOFTWARE and/or
any of its Affiliates has informed LBT or has published (in a quotation,
datasheet, term sheet or memorandum of understanding concerning the Licensed
Technology or elsewhere) a statement that a separate License has to be obtained
and/or that no implied license is granted.

       

      3.4           Open Source License
Terms.  The license granted hereunder does not include any
right, license, power or authority to subject the Licensed Technology (or a part
thereof) to Open Source License Terms.  LBT expressly agrees that it
shall not perform any actions with regard to the Licensed Software in a manner
that would require the Licensed Technology, or any derivative work thereof to be
licensed under Open Source License Terms.  These actions include but
are not limited to:

       

      (i)           combining
(a part of) the Licensed Technology (or a part thereof) or a derivative work
thereof with Open Source Software, by means of incorporation or linking or
otherwise; or

       

      (ii)          
using Open Source Software to create a derivative work of (a part of) the
Licensed Technology.

       

      LBT shall
indemnify NXP SOFTWARE, its Affiliates and its third party suppliers/licensors
against and hold NXP SOFTWARE, its Affiliates and their Suppliers harmless from
any damage or costs arising from or in connection with any violation or breach
of the provisions of this clause and LBT shall reimburse all costs and expenses
incurred by NXP SOFTWARE, its Affiliates and their suppliers in defending any
claim, demand, suit or proceeding arising from or in connection with such
violation or breach.

       

      3.5          
 No Trademark
License.  LBT hereby acknowledges and agrees that this
Agreement does not confer any rights whatsoever to LBT to use the trade or brand
name, corporate name, trademarks and logos – or any other name or mark, or
contraction, abbreviation or simulation thereof – of NXP SOFTWARE or its
Affiliates, for any reason.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      SECTION
4.0 - DELIVERY

       

      NXP
SOFTWARE shall use commercially reasonable efforts to deliver the Licensed
Software in accordance with the planning as set forth in Appendix PDA1
(‘Statement of Work’).  The Licensed Software will be delivered by
means of secured electronic transfer or storage media, as specified by NXP
SOFTWARE for the Licensed Technology, or otherwise as may be mutually agreed to
by the parties.

       

      SECTION
5.0 - OWNERSHIP RIGHTS.

       

      5.1          
 Exclusive
Ownership.  It is acknowledged and agreed by LBT that NXP
SOFTWARE owns all rights, title and interest in the Licensed Technology and
other NXP SOFTWARE Confidential Information and all modifications and derivative
works of each of the foregoing, and all intellectual property rights
therein.

       

      5.2          
 Notices.  LBT
shall not remove or alter, and shall reproduce on copies of the Licensed
Technology and Confidential Information, without any amendments or changes
thereto, any NXP SOFTWARE and its Affiliates Commercial Notices contained in any
of the Licensed Technology and Confidential Information.  LBT shall
affix to any media containing a copy of all, or any portion thereof, of the
original media, all Commercial Notices as were affixed to the original
media.

       

      5.3          
 Right to Use
Feedback.  NXP SOFTWARE and its Affiliates shall have the right
to use any feedback provided by LBT to NXP SOFTWARE relating to the Licensed
Technology and the Confidential Information.

       

      5.4          
 Modifications.  LBT
agrees and acknowledges that all Modifications shall be owned by NXP SOFTWARE
and/or its Affiliates.  LBT agrees to promptly inform NXP SOFTWARE of
any Modifications made by any of its employees and/or
Contractors.  LBT hereby irrevocably and unconditionally assigns and
otherwise transfers (and, to the extent required by law, agrees to continue to
assign and otherwise transfer from to time to time as they accrue) its entire
right, title and interest in and to all Intellectual Property Rights in such
Modifications to NXP SOFTWARE and/or its Affiliates and shall have any and all
of its employees or third parties who have contributed to such Modifications
assign and otherwise transfer (and, to the extent required by law, agrees to
continue to have such employees and third parties assigned and otherwise
transferred from time to time as they accrue) their entire right, title and
interest in same to NXP SOFTWARE and/or its Affiliates.  Upon the
request, and at the expense, of NXP SOFTWARE, LBT and such employees shall
execute, and shall have such third parties and such employees, execute all
papers, take all rightful oaths, testify in all legal proceedings and do and
have done, respectively, all other acts which may be necessary, desirable or
convenient for securing and maintaining the Intellectual Property Rights on the
foregoing or for perfecting title thereto in NXP SOFTWARE and/or its
Affiliates.  Upon NXP SOFTWARE’s first request, LBT shall deliver the
source code and object code form of such Modifications and all documentation
available to LBT related to such Modification which may be necessary or useful
for the integration, use, maintenance, support, enhancement or modification of
such Modification, including without limitation the design description,
instructions and further documentation.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      SECTION
6.0 – LICENSE ENTRY FEE, ROYALTIES AND PAYMENTS.

       

      6.1          
 License
Fee.  NXP SOFTWARE hereby waives the license fee for
LBT.

       

      SECTION
7.0 - TERM AND TERMINATION.

       

      7.1          
 Term.  This
Technology License and Distribution Agreement shall become effective as of the
date that the Framework Agreement will become effective and shall remain in
effect for as long as the Framework Agreement remains effective unless parties
explicitly agree otherwise.

       

      7.2           
Consequences of
Termination or Expiration.  Upon termination or expiration of
this Technology License and Distribution Agreement, all licenses granted to LBT
under this Technology License and Distribution Agreement shall immediately end
and LBT shall immediately return to NXP SOFTWARE, or destroy – so to the sole
discretion of NXP SOFTWARE – all Licensed Technology and other Confidential
Information, including any and all copies and derivative works
thereof.  In case, NXP SOFTWARE opts for the latter, LBT shall
subsequently provide NXP SOFTWARE within ultimately 30 (thirty) days of such
termination or expiration, with a written certificate signed by a duly
authorized representative of LBT confirming LBT’s destruction as set forth
above.

       

      SECTION
8.0 - REPRESENTATIONS AND WARRANTIES.

       

      8.1           
Delivery and
Acceptance ‘As Is’.  The Licensed Technology and related
Documentation is provided to, and is accepted by, LBT AS IS WITHOUT WARRANTY OF
ANY KIND.  LBT is deemed to have automatically accepted the Licensed
Technology ‘AS IS’ upon delivery of the Licensed Technology.

       

      8.2        
   Rights, Power and Authority
to License.  NXP SOFTWARE hereby warrants to LBT that NXP
SOFTWARE owns or has acquired all necessary rights, power and authority to grant
the license to LBT under Section 2.0 (‘Limited License’).  This clause
will not be construed as a representation or warranty of
non-infringement.  LBT’s sole and exclusive remedy for breach of the
warranty set forth in this clause is as set forth in Section 9.

       

      8.3          
 Disclaimer.  EXCEPT
FOR THE LIMITED EXPRESS WARRANTIES SET FORTH IN THIS SECTION 8, NXP SOFTWARE AND
ITS AFFILIATES EXPRESSLY DISCLAIM ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND
NON-INFRINGEMENT.

       

      8.4          
 No
Representations or Warranties.  LBT, its Affiliates and their
Customers shall not make or publish any representations, warranties, or
guarantees on behalf of NXP SOFTWARE and/or its Affiliates concerning, directly
or indirectly, the Licensed Software without NXP SOFTWARE’s specific prior
written approval.

       

      8.5           
Technology
Protection.  LBT warrants that it shall protect the Licensed
Technology from unauthorized use in a manor no less protective than LBT normally
uses for protecting its own technology; provided, however, that in no event the
protection of the Licensed Technology shall be less than the current industry
standard protective measures for similar forms of technology.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      SECTION
9.0 - INDEMNIFICATION.

       

      9.1          
 Indemnification
for NXP SOFTWARE.  LBT shall indemnify, defend and hold
harmless NXP SOFTWARE and its Affiliates from and against any claims, suits,
losses, damages, liabilities, costs, and expenses (including reasonable
attorneys’ fees) brought by third parties resulting from or relating
to:

       

      (i)           any
breach by LBT of its representations, warranties, obligations, duties, or
responsibilities under this Agreement;

       

      (ii)          any
representations, warranties, guarantees, or other written or oral statements
made by, or on behalf of, LBT relating to the Licensed Technology, other than as
authorized by NXP SOFTWARE in writing;

       

      (iii)         the
use of the Products with the integrated Licensed Technology or the Licensed
Products, notwithstanding clause 9.2.

       

      9.2          
 Indemnification
for LBT.  NXP SOFTWARE, at its sole expense,
shall:

       

      (i)           defend
any legal proceeding brought by a third party against LBT to the extent that the
proceeding includes a claim that the Licensed Technology as furnished by NXP
SOFTWARE under the Agreement directly infringes the claimant’s copy rights or
trade secrets; and

       

      (ii)          hold
LBT harmless against damages and costs awarded by final judgment in such
proceeding and effectively incurred by LBT to the extent directly and solely
attributable to such infringement.

       

      9.3          
 No
Indemnification for LBT.  NXP SOFTWARE shall have no obligation
or liability to LBT under clause 9.2.

       

      a)           if
NXP SOFTWARE is not promptly: (i) notified in writing of any such claim; (ii)
given the sole right and authority to control and direct the investigation,
preparation, defense and settlement of such claim, including but not limited to
the selection of counsel; and (iii) given full reasonable assistance and
cooperation by LBT in such defense and settlement; or

       

      b)           to
the extent that any such claim arises from: (i) any modification of the Licensed
Technology, other than by NXP SOFTWARE, if such claim would have been avoided by
use of the unmodified Licensed Technology; (ii) design, specifications,
requirements or instructions furnished by LBT; or (iii) the combination or
implementation of the Licensed Technology with any other product, service or
technology; or

       

      c)           if
the claim is not made within the term for claims specified in clause 8.3 of the
Framework Agreement and/or after the termination or expiration date of this
Technology License and Distribution Agreement; or

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      d)           to
the extent the claim and/or the calculation of the claim is based, directly or
indirectly, upon the frequency of use or the amount of use of the Products
irrespective of whether such claim alleges that the Products as such, or its
use, infringes or contributes to the infringement of any Intellectual Property
Rights of the claimant; or

       

      e)           for
unauthorized use or distribution of the Licensed Technology or use beyond the
Specifications; or

       

      f)           to
the extent any such claim arises from any Customer’s manufacture, use, sale,
offer for sale, importation or other disposition or promotion of any Products
after NXP SOFTWARE’s notice to LBT that such Customer should cease any such
activity, provided such notice shall only be given if the Licensed Technology
is, or in NXP SOFTWARE’s opinion is likely to become, the subject of such a
claim of infringement; or

       

      g)           for
any costs or expenses incurred by LBT without NXP SOFTWARE’s prior written
consent; or

       

      h)           to
the extent any such claim arises from any infringement or alleged infringement
of any Intellectual Property Rights covering a Technical Standard, whether
proprietary or open; or

       

      i)           for
infringement of any third party’s Intellectual Property Rights covering the
manufacture, testing or application of any assembly, circuit, combination,
method or process in which the Licensed Technology may have been used;
or

       

      j)           for
infringement of any third party’s Intellectual Property Rights with respect to
which NXP SOFTWARE has informed LBT or has published (in a proposal, datasheet,
term sheet or other specifications concerning the Licensed Technology or
elsewhere) a statement that a separate license has to be obtained and/or that no
implied license is granted, to the extent any such claim arises from LBT’s
manufacture, use, sale, offer for sale, importation or other disposition or
promotion of the Licensed Technology after NXP SOFTWARE has informed the LBT or
has published a statement as referred to above in this sub clause
(j).

       

      LBT shall
indemnify NXP SOFTWARE and its Affiliates against and hold NXP SOFTWARE and its
Affiliates harmless from any damages or costs arising from or connected with
claims of infringements as referred to under sub clauses (a) through (j) above
and shall reimburse all costs incurred by NXP SOFTWARE or any of its Affiliates
in defending any claim, demand, suit or proceeding for such infringement,
provided NXP SOFTWARE or any of its Affiliates gives LBT prompt notice in
writing of any such suit or proceeding for infringement.

       

      9.4         
  Right of
NXP SOFTWARE.  If the Licensed Software is, or in NXP
SOFTWARE’s opinion is likely to become, the subject of a claim of infringement
as referred to under clause 9.2 above, NXP SOFTWARE shall have the right,
without obligation and at its sole discretion, to: (i) procure for LBT the right
to continue to use the Licensed Software; (ii) replace or modify the Licensed
Software in such a way as to make the modified Licensed Software non-infringing;
or (iii) terminate this Agreement, provided that in the event of such
termination NXP SOFTWARE shall refund the amount of royalties received by NXP
SOFTWARE hereunder over the previous twelve (12) months for the Licensed
Technology that is then subject to the claimant’s continuing claim of
infringement as prorated on a 6 (six)-year straight-line basis.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      9.5          
 Entire
Liability.  Subject to the limitations set forth in Section 8
of the Framework Agreement, the foregoing states NXP SOFTWARE’s and its
Affiliates’ entire liability and obligation to LBT and its customers and LBT’s
sole remedy with respect to any actual or alleged infringement of any
Intellectual Property Rights of any kind.

       

      IN
WITNESS WHEREOF, the parties have executed this Technology License and
Distribution Agreement by their duly authorized officers as of the Effective
Date.

       

      
        
          
            	LOCATION
      BASED TECHNOLOGIES INC.	 	 	NXP
      SOFTWARE B.V.	 
	 	 	 	 	 
	
                    By:
      /s/ Joseph F. Scalisi

                  	 	 	
                    By:
      /s/ Stefan Franco 

                  	 
	
                    Name:
      Joseph F. Scalisi

                  	 	 	
                    Name:
      Stefan Franco 

                  	 
	
                    Title:
      Chief Development Officer

                  	 	 	
                    Title:
      Financial Director

                  	 
	Date:  February
      28, 2008	 	 	Date:  29
      February 2008	 

          

        

         

        
          
            	
                    Address
      for notices:

                  	 	 	
                    By:
      /s/ K. H. Van Holten 

                  	 
	
                     

                  	 	 	
                    Name:
      K. H. Van Holten 

                  	 
	
                    Location
      Based Technologies Inc.

                  	 	 	
                    Title:
      Director

                  	 
	4989
      E. La Palma Avenue	 	 	Date:  29
      February 2008	 
	Anaheim	 	 	 	 
	California
      92708	 	 	By:
      /s/ P.H.J. De Koning	 
	United
      States	 	 	
                    Name:
      P.H.J. De Koning

                  	 
	
                    Fax
      no: +1 (714) 200-0287

                  	 	 	
                    Title:
      Director

                  	 
	 	 	 	Date:  29
      February 2008	 
	 	 	 	 	 
	 	 	 	Address
      for notices:	 
	 	 	 	 	 
	 	 	 	Attention:
      Stefan Franco	 
	 	 	 	NXP
      Software B.V.	 
	 	 	 	High
      Tech Campus 41	 
	 	 	 	5656
      AE	 
	 	 	 	Eindhoven	 
	 	 	 	
                    Fax
      no: +31 40 27 25500

                  	 

          

        

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
TLDA1

       

      Description
of Licensed Technology

       

      
        	
                Component

                 

              	
                Component
      Type

              	
                Description

              
	
                Arikara
      Embedded Software

                Engine
      and Documentation

              	
                Software

              	
                Arikara
      Product Specification 

                v1.0
      §3.1

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