Document:

exhibit10_1.htm

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is between BOND LABORATORIES, Inc. (the “Company”) and Scott Landow (“Employee”), and is executed effective as of August 16, 2009 (the “Effective Date”) in connection with and consideration of the compensation set forth herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged.

 

1. Previous Employment Agreement.

 

    A.           Previous Employment Agreement.  The Company and Employee have previously entered into that Employment Agreement dated effective July 1, 2007 (the “Previous Employment Agreement”), pursuant to which Employee was employed as Chief
Executive for a term of two years.  The Company and Employee now desire to terminate the Previous Employment Agreement, (which has expired but continues based on its automatic renewal for two (2) years, Sec. 1.2, and to replace it with this Agreement.

 

    B.           Termination of Previous Employment Agreement.  The Previous Employment Agreement is terminated on mutual agreement of the Company and Employee effective as of the Effective Date.  The Previous Employment Agreement shall be of
no further force or effect hereafter, and neither party shall have any further obligations or duties with respect to each other under the Previous Employment Agreement from the termination date forward; however, this termination shall not extinguish Employee’s rights to unreimbursed expenses or benefits.  

   C.           Accrued but unpaid Salary and Stock Warrants.  The Employee agrees to forfeit previously accrued but unpaid salary in the amount of approximately $380,000. In addition the Employee agrees to forfeit 400,000 Common Stock Warrants, issued in consideration
for the deferral of salary to the Employee, and modify the exercise price of the remaining warrants to par value, ($.001).

2. Services to be Rendered by Employee.  The Company hereby employs, engages and hires Employee in the capacity of New Product Manager, and Employee hereby accepts and agrees to such hiring, engagement and employment.  Employee will devote his reasonable efforts,
energy and skill to the performance of these duties and for the benefit of the Company, and will exercise due diligence and care in the performance of all duties performed for the Company under this Agreement.  Employee will devote the time necessary to fulfill Employee’s duties to the Company.  However, Employee shall not be required to devote his full time efforts, energy and skill to the performance of these duties, nor will he be required to fulfill these duties solely at the offices
of the Company.  The Company expressly agrees that Employee will be entitled to seek and engage in other employment and business activities, unless such employment or activities would violate the non-competition covenant in Section 7 or any other provision of this Agreement.

 

3. Term; Termination.

 

    A. Term.  Subject to the terms and conditions of this Agreement, the Company will employ Employee, and Employee will serve the Company, for Seventeen Months from the Effective Date (the “Term”).

 

    B. Termination by the Company.  Employee’s employment may only be terminated by the Company during the term of this Agreement for “Cause,” which termination may occur without prior written notice to Employee. Termination for Cause shall be defined as any of the following from and
after the Effective Date:

 

        (a) Any willful breach of any material written policy of the Company that results in material and demonstrable liability or loss to the Company or that continues after written notice;

  

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        (b) Willful failure to perform or gross negligence in connection with the performance of Employee’s duties;

 

        (c) The engaging by Employee in conduct involving moral turpitude that causes material and demonstrable injury, monetarily or otherwise, to the Company, including, but not limited to, misappropriation or conversion of assets of the Company (other than immaterial assets);

 

        (d) Conviction of or entry of a plea of nolo contendere to a felony;

 

        (e) A material breach of this Agreement, including by engaging in action in violation of the restrictive covenants in this Agreement; or

 

        (f) Any other conduct or activity that the Board of Directors determines in good faith jeopardizes the proper conduct of the Company’s operations if such conduct or activity continues to occur after written notice.

 

        No act or failure to act by the Employee shall be deemed “willful” if done, or omitted to be done, by him in good faith and with the reasonable belief that his action or omission was in the best interest of the Company.

 

    C. Termination by Employee.  Employee may terminate his employment by the Company at any time by giving 14 days prior written notice thereof to the Company.

 

    D. Effect of Termination.  Upon termination of Employee’s employment pursuant to Section 3(B) or Section 3(C) or expiration of the Term, the Company’s obligations under this Agreement will terminate.

 

4.Compensation; Benefits.

 

    A. Base Salary.  During the term of this Agreement, the Company will pay to Employee base salary (“Base Salary”) at the rate of $16,800 (Sixteen Thousand One Hundred and No/100 dollars) per annum.

  

    B. Benefit Plans.  Employee will be entitled to participate in all formal retirement, insurance, hospitalization, disability and other employee benefit plans that are in existence or may be adopted by the Company or in which employees of the Company are eligible to participate, provided that Employee
is eligible by the terms thereof and applicable law to participate therein.

  

   C. Reimbursable Expenses.  Employee will be entitled to be reimbursed for any and all expenses incurred under the same terms of his previous employment agreement.  Any travel done for the benefit of the Company will be pre-approved and orchestrated by the Company.

   D. General.  All payments under this Agreement will be subject to applicable withholding and similar taxes and will, if applicable, be prorated for the applicable period.  Employee’s Base Salary and other compensation will be paid to Employee in accordance with the Company’s regular
policy.  The Compensation Committee will, in its sole discretion, periodically review Employee’s Base Salary and other compensation.  All payments to the Employee (or any entities he may be associated with that enters into a contract or loan agreement with the Company), shall be ranked pari-passu with any salary or payment the Company makes to the Chief Executive Officer.

  

-2-

  

 

5. Protection of Trade Secrets and Confidential Information.

 

    A. Definition of “Confidential Information.  “Confidential Information” means all nonpublic information concerning or arising from the Company’s business, including particularly but not by way of limitation trade secrets used, developed or acquired by the Company in connection
with its business; information concerning the manner and details of the Company’s operation, organization and management; financial information and/or documents and nonpublic policies, procedures and other printed or written material generated or used in connection with the Company’s business; the Company’s business plans and strategies; the identities of the Company’s customers and the specific individual customer representatives with whom the Company works; the details of the Company’s
relationship with such customers and customer representatives; the identities of distributors, contractors and vendors utilized in the Company’s business; the details of the Company’s relationship with such distributors, contractors and vendors; the nature of fees and charges made to the Company’s customers; nonpublic forms, contracts and other documents used in the Company’s business; the nature and content of computer software used in the Company’s business, whether proprietary
to the Company or used by the Company under license from a third party; and all other information concerning the Company’s concepts, prospects, customers, employees, contractors, earnings, products, services, equipment, systems and/or prospective and executed contracts and other business arrangements.

 

    B. Employee’s Use of Confidential Information.  Except in connection with and in furtherance of Employee’s work on the Company’s behalf, Employee shall not, without the Company’s prior written consent, at any time, directly or indirectly, use, disclose or otherwise communicate
any Confidential Information to any person or entity.

 

    C. Acknowledgments.  Employee acknowledges that during the term of his employment, Employee will have access to Confidential Information, all of which shall be made accessible to Employee only in strict confidence; that unauthorized disclosure of Confidential Information will damage the Company’s
business; that Confidential Information would be susceptible to immediate competitive application by a competitor of the Company; that the Company’s business is substantially dependent on access to and the continuing secrecy of Confidential Information; that Confidential Information is unique to the Company and known only to Employee, the Company and certain key employees and contractors of the Company; that the Company shall at all times retain ownership and control of all Confidential Information; and
that the restrictions contained in this paragraph are reasonable and necessary for the protection of the Company’s business.

 

    D. Records Containing Confidential Information.  All documents or other records containing or reflecting Confidential Information (“Confidential Documents”) prepared by or provided to Employee are and shall remain the Company’s property.  Except with the Company’s
prior written consent, Employee shall not copy or use any Confidential Document for any purpose not relating directly to Employee’s work on the Company’s behalf, or use, disclose or sell any Confidential Document to any party.  Upon the termination of Employee’s employment or upon the Company’s request, Employee shall immediately deliver to the Company or its designee (and shall not keep in Employee’s possession or deliver to anyone else) all Confidential Documents and
all other property belonging to the Company.  This paragraph shall not bar Employee from complying with any subpoena or court order, provided that Employee shall at the earliest practicable date provide a copy of the subpoena or court order to the Chief Executive Officer of the Company.

 

    E. Employee’s Former Employers’ Confidential Information.  Employee shall not, during Employee’s employment with the Company, improperly use or disclose to the Company any proprietary information or trade secrets belonging to any other current or former employer or any third party
as to whom Employee owes a duty of nondisclosure.

  

-3-

  

6. Non-Solicitation.  During the term of Employee’s employment, Employee shall not, without the Company’s prior written consent, directly or indirectly:

 

    A. Cause or attempt to cause any employee, agent, distributor, endorser or contractor of the Company to terminate his or her employment, agency, distributor, endorser or contractor relationship with the Company; interfere or attempt to interfere with the relationship between the Company and any employee, agent,
distributor, endorser or contractor of the Company or hire or attempt to hire any employee, agent, distributor, endorser or contractor of the Company; or

 

    B. Solicit business from any customer or client served by the Company at any point during the term of Employee’s employment; or interfere or attempt to interfere with any transaction, agreement or business relationship in which the Company was involved at any point during the term of Employee’s employment.

 

7. Non-Competition.  During the Term, Employee shall not, without the Company’s prior consent, (which will not be unreasonably withheld), directly or indirectly engage in any business that is in direct competition with the business conducted by the Company anywhere
in the United States, whether as proprietor, partner, joint venturer, employer, agent, employee, consultant, officer, or beneficial or record owner of more than 2% of the stock of a corporation, business, or association.  For purposes of this Section, a business is “in competition” with the Company if it engages in business in the manufacturing and distribution of nutritional products/healthy foods and beverages through retail distribution (excluding sales via the internet), without giving
the Company a first right of refusal to participate with the Employee or any entity he may control.  However, Employee will not be prohibited from owning securities in a business in competition with the Company if the securities are listed on a stock exchange or traded on the over-the-counter market.  Employee specifically acknowledges and agrees that the Company’s business covers the market area identified above, and agrees that the restrictions contained in this Section are reasonable
in scope under California law.

8. Survival.  Employee’s obligations under this Agreement shall survive the termination of Employee’s employment and shall thereafter be enforceable whether or not such termination is later claimed or found to be wrongful or to constitute or result in a breach
of any contract or of any other duty owed or claimed to be owed by the Company to Employee.

 

9. Remedies.  Employee acknowledges that upon a breach of any obligation under this Agreement, the Company will suffer immediate and irreparable harm and damage for which money alone cannot fully compensate the Company.  Employee therefore agrees that upon
such breach or threat of imminent breach of any obligation under this Agreement, the Company shall be entitled to, and Employee shall not oppose entry of, a temporary restraining order, preliminary injunction, permanent injunction or other injunctive relief, without posting any bond or other security, barring Employee from violating any such provision. This paragraph shall not be construed as an election of any remedy, or as a waiver of any right available to the Company under this Agreement or the law, including
the right to seek damages from Employee for a breach of any provision of this Agreement, nor shall this paragraph be construed to limit the rights or remedies available under California law for any violation of any provision of this Agreement.

 

10. Miscellaneous.

 

    A. Entire Agreement.  This Agreement constitutes the entire agreement between the Company and Employee and supersedes all prior oral or written agreements and understandings with respect to the subject matter hereof.

 

    B. Heirs and Assigns.  This Agreement shall be binding upon Employee’s heirs, executors, administrators or other legal representatives, shall inure to the benefit of the Company, its successors or assigns, and shall be freely assignable by the Company, but not by Employee.  In the event
the employee dies, the Company agrees to continue COBRA payments for the benefit of his heirs for the original term of the agreement.

  

-4-

  

 

    C. Governing Law.  This Agreement and all other disputes or issues arising from or relating in any way to the Company’s relationship with Employee, shall be governed by the internal laws of the State of California, irrespective of the choice of law rules of any jurisdiction.

 

    D. Severability.  If any court of competent jurisdiction declares any provision of this Agreement invalid or unenforceable, the remainder of the Agreement shall remain fully enforceable.  To the extent that any court concludes that any provision of this Agreement is void or voidable, the
court shall reform such provision(s) to render the provision(s) enforceable, but only to the extent absolutely necessary to render the provision(s) enforceable and only in view of the parties’ express desire that the Company be protected to the greatest extent possible under applicable law from improper competition and/or the misuse or disclosure of trade secrets, Confidential Documents and/or Confidential Information.

 

    E. Disputes.  Any action arising from or relating any way to this Agreement, or otherwise arising from or relating to Employee’s employment with the Company, shall be tried only in the state or federal courts situated in Denver, California.  The parties consent to jurisdiction and venue
in those courts to the greatest extent possible under law.  The prevailing party in any action to enforce any provision of this Agreement shall recover all costs and attorneys’ fees incurred in connection with the action.

 

    F. Prior Agreements. This agreement supersedes all prior agreements between Employee and the Company relating to the subject of Employee’s employment with the Company and may only be amended by written instrument signed by Employee and the Member of the Board of the Company.

 

 

 

IN WITNESS WHEREOF, the undersigned has executed this Employment Agreement to be effective as of the Effective Date.

 

EXECUTED this 16th day of August, 2009, to be effective as of the Effective Date.

 

	
EMPLOYEE: 

 

 

 

By: /s/ Scott D. Landow             

Name: Scott Landow

 
	
COMPANY:

 

BOND LABORATORIES, INC.

 

By: /s/ John Wilson         

Name: John Wilson

Title: Chief Executive Officerex_10-47.htm

    
      

      

    

    Exhibit
10.47

     

     

    STOCK
PURCHASE AGREEMENT

     

     

    BY AND
BETWEEN

     

     

    LOCATION
BASED TECHNOLOGIES, INC.

     

     

    AND

     

     

    AFFINITAS
CORPORATION

     

     

    Dated July 31, 2009

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE OF CONTENTS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	1.	Agreement
      to Sell and Agreement to Purchase  	1
	 	1.1              	Purchase
      of Shares	1
	 	1.2                   	Closing  	1
	2.	Consideration
      to be Paid by Buyer   	1
	 	2.1              	Purchase
      Price for Shares 	1
	 	2.2              	Payment
      of Purchase Price 	2
	3.	
                                              Representations and Warranties of the Company

                                            	2
	 
      	
                                              3.1

                                            	
                                              Organization
      and Good Standing

                                            	
                                              2

                                            
	 
      	
                                              3.2

                                            	
                                              Authorization
      of Agreement

                                            	
                                              2

                                            
	 
      	
                                              3.3

                                            	
                                              Capitalization

                                            	
                                              2

                                            
	 
      	
                                              3.4

                                            	
                                              Financial
      Condition

                                            	
                                              2

                                            
	 
      	
                                              3.5

                                            	
                                              Assets
      of the Company

                                            	
                                              3

                                            
	 
      	
                                              3.6

                                            	
                                              Material
      Contracts

                                            	
                                              3

                                            
	 
      	
                                              3.7

                                            	
                                              Labor
      and Employment Matters

                                            	
                                              3

                                            
	 
      	
                                              3.8

                                            	
                                              Litigation

                                            	
                                              4

                                            
	 
      	
                                              3.9

                                            	
                                              No
      Undisclosed Liabilities

                                            	
                                              4

                                            
	 
      	
                                              3.10

                                            	
                                              Compliance
      with Law

                                            	
                                              4

                                            
	
                                              4.

                                            	
                                              Representations
      and Warranties of Buyer

                                            	4
	 
      	
                                              4.1

                                            	
                                              Investment
      Intent

                                            	
                                              4

                                            
	 
      	
                                              4.2

                                            	
                                              Review
      of SEC Filings

                                            	
                                              4

                                            
	
                                              5.

                                            	
                                              Covenants

                                            	 
      	4
	 
      	
                                              5.1

                                            	
                                              Form
      D

                                            	
                                              4

                                            
	 
      	
                                              5.2

                                            	
                                              Reporting
      Status

                                            	
                                              4

                                            
	 
      	
                                              5.3

                                            	
                                              Schedule
      13D

                                            	
                                              5

                                            
	 
      	
                                              5.4

                                            	
                                              Use
      of Proceeds

                                            	
                                              5

                                            
	 
      	
                                              5.5

                                            	
                                              Financial
      Information

                                            	
                                              5

                                            
	 
      	
                                              5.6

                                            	
                                              Disclosure
      of Transaction

                                            	
                                              5

                                            
	 
      	
                                              5.7

                                            	
                                              Conduct
      of the Business of the Company

                                            	
                                              5

                                            
	
                                              6.

                                            	
                                              Indemnification

                                            	5
	 
      	
                                              6.1

                                            	
                                              Claims
      for Indemnification

                                            	
                                              5

                                            
	 
      	
                                              6.2

                                            	
                                              Manner
      of Indemnification

                                            	
                                              6

                                            
	 
      	
                                              6.3

                                            	
                                              Limitations
      on Indemnification

                                            	
                                              6

                                            
	 
      	
                                              6.4

                                            	
                                              Sole
      Basis for Recovery

                                            	
                                              6

                                            
	 
      	
                                              6.5

                                            	
                                              Insurance

                                            	
                                              6

                                            

                                       

                                      
                                        
                                          
                                          

                                        

                                        
                                          i

                                          
                                            

                                          

                                        

                                        
                                          
                                          

                                        

                                      

                                       

                                      	7.	Miscellaneous	6
	 	7.1	Notices	6
	 	7.2	Governing
      Law	6
	 	7.3	Counterparts	6
	 	7.4	Indemnification
      for Brokerage	6
	 	7.5	Complete
      Agreement	7
	 	7.6	Interpretation	7
	 	7.7	Severability	7
	 	7.8	Knowledge;
      Due Diligence Investigation	7
	 	7.9	Expenses
      of Transactions	7
	 	7.10	Amendment	7
	 	7.11	Counterparts	7

                                    

                                  

                                

                              

                               

                               

                              
                                SCHEDULES

                                 

                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      	
                                                              Schedule
      2.2

                                                            	
                                                              Instructions
      for Payment of Purchase Price

                                                            
	
                                                              Schedule
      3.3

                                                            	
                                                              Obligations
      of the Company

                                                            
	
                                                              Schedule
      3.4.1.1

                                                            	
                                                              Financial
      Statements Delivered to Buyer

                                                            
	
                                                              Schedule
      3.4.2

                                                            	
                                                              Changes
      in Financial Condition of the

                                                            
	
                                                              Schedule
      3.4.3 

                                                            	Company
      Defaults of the Company
	
                                                              Schedule
      3.5

                                                            	
                                                              Liens
      of the Company

                                                            
	
                                                              Schedule
      3.8

                                                            	
                                                              Current
      Litigation

                                                            
	
                                                              Schedule
      3.9

                                                            	
                                                              Undisclosed
      Liabilities

                                                            
	
                                                              Schedule
      4.1

                                                            	
                                                              Stock
      Certificate Legend

                                                            
	
                                                              Schedule
      5.4

                                                            	
                                                              Use
      of
Proceeds

                                                            

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                                

                                
                                  
                                    
                                    

                                  

                                  
                                    ii

                                    
                                      

                                    

                                  

                                  
                                    
                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      STOCK
PURCHASE AGREEMENT

       

      This
STOCK PURCHASE AGREEMENT (this "Agreement") is made and entered into as of this
31st day of July, 2009 by and between the Location Based Technologies,
Inc., a Nevada corporation (the "Company") and Affinitas Corporation, a Nebraska
Corporation, 1015 No. 98th Street, Suite 100, Omaha, NE 68114
("Buyer").

       

      
        RECITALS

         

        A. The
Company is in the business of developing, marketing and selling high quality
personal location devices through its Anaheim, California facility (the
"Business").

         

        B. The
Company desires to sell to Buyer 387,397 shares of its common
restricted stock (the "Shares"), and Buyer desires to acquire the Shares on the
terms and conditions hereinafter set forth.

         

        AGREEMENT

         

        NOW,
THEREFORE, in consideration of the mutual covenants, agreements, representations
and warranties and subject to the conditions contained herein, the parties
hereto covenant and agree as follows:

         

        1. Agreement to Sell and
Agreement to Purchase.

         

        1.1 Purchase of Shares.
Simultaneously with the execution of this Agreement,on the
terms and subject to the conditions set forth herein, the Company shall issue
and sell to Buyer and Buyer shall purchase, acquire and accept from the Company,
all the Shares. The Company shall deliver to Buyer certificates representing the
Shares against receipt of the Purchase Price (hereafter defined).

         

        1.2 Closing. The closing
of the transactions herein contemplated (the "Closing")
shall take place at the offices of the Company in Anaheim, California, and be
effective as of 5:00 p.m., local time, on the date hereof (the "Closing Date").
All actions taken and all documents delivered at the Closing shall be deemed to
have occurred simultaneously.

         

        2. Consideration to be Paid by
Buyer.

         

        2.1 Purchase Price for
Shares. The purchase price for the Shares ("Purchase Price") shall be
$ .7749 per share for an
aggregate of $ 300,000.00
. Warrant coverage will cover 25% of the aggregate value of the
Purchase Price based on the closing day's value of the market on the day good
funds are received ($ per share) with a three (3) year term.

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

         

        
          2.2 Payment of Purchase
Price. At the Closing, Buyer shall pay to the Company
in immediately available funds by wire transfer (pursuant to the instructions
set forth on Schedule 2.2) the Purchase Price against receipt of the
Shares.

           

          3. Representations and
Warranties of the Company. The Company represents and warrants
to Buyer that:

           

          3.1 Organization and Good
Standing. The Company is duly organized, validly
existing and in good standing under the laws of Nevada (the jurisdiction in
which it was formed) with full power to carry on its business as it is now and
has since its organization been conducted, and to own, lease or operate its
assets. The Company is duly authorized to do business and is in good standing in
such other jurisdictions in which the Company is required to be so
authorized.

           

          3.2 Authorization of
Agreement. The Company has all requisite power and authority
to enter into this Agreement and to consummate the transactions contemplated
hereby. This Agreement and all other agreements and instruments to be executed
by the Company has been duly executed and delivered by the Company, has been
effectively authorized by all necessary action, corporate or otherwise, and
constitutes the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms.

           

          3.3 Capitalization. The
authorized capital stock of the Company consists solely of
(i) 300,000,000 shares of voting common stock, $0.001 par value, of which
________ shares
are issued and outstanding and (ii) 30,000,000 shares of preferred stock, $0.001
par value, none of which shares are issued and outstanding. All of the
outstanding shares have been duly authorized, validly issued (free of all
preemptive rights), are fully paid and nonassessable. Any outstanding or
authorized options, warrants, subscriptions, calls, puts, conversion or other
rights, contracts, agreements, commitments or understandings of any kind
obligating the Company to issue, sell, purchase, return, redeem or pay any
distribution or dividend with respect to any shares of capital stock of the
Company or any other securities convertible into, exchangeable for or evidencing
the right to subscribe for any shares of capital stock of or other ownership
interest in the Company are listed on Schedule 3.3 hereof.

           

          3.4 Financial
Condition.

           

          3.4.1
Financial
Statements.

           

          3.4.1.1
The Company has made available (see www.sec.gov) to Buyer the
financial statements (collectively, the "Financial Statements") listed on
Schedule 3.4.1.1, together with the report thereon of the Company's independent
certified public accountants where
applicable.

           

          3.4.1.2
To the Company's best knowledge, the Financial Statements fairly present in all
respects the financial condition and the results of operations of the Company as
at the respective dates of and for the periods referred to in such financial
statements and reflect the consistent application of accounting principles
throughout the periods involved in accordance with generally accepted accounting
principles.

           

          
            
              
              

            

            
              2

              
                

              

            

            
              
              

            

          

           

          3.4.2
Absence
of Certain Changes. Except as disclosed on Schedule 3.4.2, since November
30, 2008 (the "Balance Sheet Date") there has not been (i) any change in the
financial condition, results ofoperations, assets, business, or prospects of the
Company as described in its filings with the Securities and Exchange Commission
("SEC Filings") or otherwise that could have a material adverse effect on the
assets, results (financial or otherwise), business or prospects of the Company
(a "Material Adverse Effect"); (ii) any damage, destruction or loss, whether or
not covered by insurance, that could have a Material Adverse Effect; (iii) any
sale or transfer of any ofthe assets of the Company, except sales in the
ordinary course of the business of inventory or immaterial amounts of other
tangible personal property; (iv) any commitment by the Company to any capital
expenditure to be paid after the Closing in excess of S100,000 for any
individual commitment or $500,000 in the aggregate; (v) any incurrence
of additional indebtedness for borrowed money or entering into long term
contracts or commitments by the Company to be performed after the Closing Date;
(vi) any alteration in any respect of the Company's practices and policies
relating to the payment and collection of accounts receivable; (vii) any failure
to operate the Company in the ordinary course of business consistent with past
practice; (viii) any increase in, or commitment to increase, the compensation
payable or to become payable to any of the Company's executive employees or any
bonus payment (other than as included as an accrued liability on the Company's
balance sheet) or similar arrangement made to or with any of the Company's
executive employees; (ix) any adoption of a plan or agreement or amendment to
any plan or agreement providing any new or additional fringe benefits; (x) any
material alteration in the manner of keeping the Company's books, accounts or
records, (xi) any transaction with any affiliate of the Company; (xii) any
material tax election or establishment or increase in a reserve for taxes or
other liabilities on its books or otherwise provided therefore, except for taxes
or other liabilities relating to the ordinary course operations of the Company
since the Balance Sheet Date; (xiii) any liens claims or encumbrances placed
upon the Company's assets; or (xiv) any material transaction entered into by the
Company not in the ordinary course of business.

           

          3.4.3
No
Default. Except as disclosed in the Company's balance sheet as of the
Balance Sheet Date, or on Schedule 3.4.3, the Company is not in default with
respect to any liabilities or obligations, and all such liabilities or
obligations shown and reflected in such balance sheet and such liabilities
incurred or accrued subsequent to such Balance Sheet Date have been, or are
being, paid or discharged as they become due, and all such liabilities and
obligations were incurred in the ordinary course of business.

           

          3.5 Assets
of the Company. The Company owns, or has valid leasehold interests
in, or licenses to, all of the assets required or necessary to operate the
Business of the Company as it is now being conducted. Except for liens reflected
on the May 31, 2008 balance sheet, or on Schedule 3.5 hereof, the Company's
assets are free and clear of all liens.

           

          3.6 Material
Contracts. The Company's SEC Filings contain copies of all material
contracts to which the Company is a party, and the Company has made copies of
such contracts available to Buyer as requested by Buyer.

           

          3.7 Labor
and Employment Matters. No collective bargaining agreement exists
that is binding on the Company and no proceedings have been
instituted by an employee or group of employees seeking recognition of a
bargaining representative. No organizational effort
currently is being made or threatened by or on behalf of any labor union to
organize any employees of the Company. The employment arrangements for executive
management of the Company are set forth in the material contracts included with
the Company's SEC Filings.

           

          
            
              
              

            

            
              3

              
                

              

            

            
              
              

            

          

           

          3.8 Litigation.
Except as set forth in the Company's SEC Filings or on Schedule
3.8 hereof, there are no material claims or litigation pending against the
Company.

           

          3.9 No
Undisclosed Liabilities. Except as and to the extent specifically
reflected
or reserved against in the Company's balance sheet as of the Balance Sheet Date
or on Schedule 3.9 hereof, the Company has no liabilities or obligations of any
kind, including, without limitation, environmental, employment, ERISA or income
tax obligations, whether absolute, accrued, contingent or
otherwise.

           

          3.10
Compliance
with Law. To the Company's knowledge it has not violated and its business
as presently conducted does not violate, in any material respect any Federal,
state, local or foreign laws, regulations, permits, licenses, governmental
authorizations or orders, and the Company has not received any notice of any
such violation.

           

          4.
Representations
and Warranties of Buyer.
Buyer represents and warrants to the Company that:

           

          4.1 Investment
Intent. Buyer is acquiring the Shares with the intention as of
the date
hereof of holding the Shares for purposes of investment. Buyer acknowledges that
the Shares have not been, and will not be, registered under the Securities Act
of 1933, as amended (the "Act"), or any state securities laws, and Buyer has no
intention as of the date hereof of selling the Shares in a public distribution
in violation of Federal securities laws or any applicable state securities laws.
Buyer is an Accredited Investor (as defined in Rule 501 promulgated under the
Act) and is able to bear the risk of an investment in the Shares including risks
associated with holding the Shares for an extended period of time. Buyer
understands that the certificates representing the Shares will bear the legend
set forth on Schedule 4.1 hereof.

           

          4.2 Investigation.
Buyer, or its representatives, have reviewed the Company's SEC
Filings and other business records or information deemed necessary and have had
an opportunity to ask questions of, and receive answers or requested
documentation from, such officers of the Company as it deems necessary to
undertake the investment in the Company contemplated by this
Agreement.

           

          5. Covenants.

           

          5.1 Form
D. The Company shall make its best efforts to timely file a Form D
to the
Shares as required under Regulation D promulgated by the Securities and Exchange
Commission ("SEC") and provide a copy thereof to Buyer. The Company shall also
make all filings and reports relating to the offer and sale of the Shares
acquired under applicable securities laws of the United States following the
Closing Date.

           

          5.2 Reporting
Status. The Company shall use its commercially reasonable best
efforts to timely file all reports required to
be filed by the SEC pursuant to the Securities Exchange Act of 1934, as amended
("34 Act"), and the Company shall not terminate its status as an issuer
required to file reports under the 34 Act even if the 34 Act or the rules and
regulations thereunder would otherwise permit such termination.

           

          
            
              
              

            

            
              4

              
                

              

            

            
              
              

            

          

           

          5.3 Schedule 13D. Buyer
agrees to file a Schedule 13D, if applicable, with the SEC
in a timely manner, and agrees to keep it current.

           

          5.4 Use of Proceeds. The
Company will use the proceeds ftom the sale of the Shares
for working capital purposes as more particularly described and in the amounts
indicated in Schedule 5.4 attached hereto and incorporated herein by this
reference.

           

          5.5 Disclosure of
Transaction. As soon as reasonably possible following the Closing
Date, the Company shall file a Form 8-K with the SEC describing the terms of the
transactions contemplated herein.

           

          5.6 Conduct of the Business of
the Company. After the Closing Date, the Company
will continue to conduct the operations of the business of the Company in the
ordinary course and will maintain the assets, properties and rights of the
Company in at least as good order and condition as exists on the date hereof,
subject to ordinary wear and tear.

           

          6. Indemnification. In
consideration of Buyer's execution and delivery of this Agreement
and acquiring the Shares thereunder, and in addition to all of the Company's
other obligations under the Agreement, the Company shall defend, protect,
indemnify and hold harmless Buyer from and against any and all actions, causes
of action, suits, claims, losses, costs, penalties, fees, liabilities and
damages, and expenses in connection therewith (irrespective of whether Buyer is
a party to the action for which indemnification hereunder is sought), and
including reasonable attorneys' fees and disbursements (the "Indemnified
Liabilities"), incurred by Buyer as a result of or arising out of or relating to
(a) any misrepresentation or breach of any representation or warranty made by
the Company in the Agreement or any other certificate, instrument or document
contemplated hereby, (b) any breach of any covenant, agreement or obligation of
the Company contained in this Agreement or any other certificate, instrument or
document contemplated hereby, (c) any cause of action, suit or claim brought or
made against Buyer and arising out of or resulting from the execution, delivery,
performance or enforcement of the Agreement in accordance with the terms hereof
or any other certificate, instrument or document contemplated hereby, or (d) any
transaction financed or to be financed in whole or in part, directly or
indirectly, with the proceeds of the issuance of the Shares. To the extent that
the foregoing undertaking by the Company may be unenforceable for any reason,
the Company shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities that is permissible under applicable
law.

           

          6.1 Claims for
Indemnification. Whenever any claim shall arise for indemnification
hereunder, Buyer shall promptly notify the Company ofthe claim and, when known,
the facts constituting the basis for such claim; provided however, that a
failure to provide such notice will not reduce the indemnification obligation
hereunder unless, and only to the extent that, such failure to deliver notice
materially prejudices the Company. In the event of any claim for indemnification
hereunder resulting from or in connection with any claim or legal proceedings by
a third party, the notice to the Company shall specify, if known, the amount or
an estimate ofthe amount of the liability potentially arising therefrom. The
Buyer shall not settle or compromise
any claim by a third party for which it is entitled to indemnification
hereunder, without the prior written consent of the Company, which will not be
unreasonably withheld.

           

          
            
              
              

            

            
              5

              
                

              

            

            
              
              

            

          

           

          6.2 Manner
of Indemnification. Any indemnification by the Company of the
Buyer
shall be effected by payment of cash, wire transfer or delivery of a certified
or official bank check in immediately available funds in the amount of the
Indemnification Liability.

           

          6.3 Limitations
on Indemnification. All representations and warranties made by the
Company herein or in any instrument or document furnished in connection herewith
shall survive the Closing only for a period of 12 months, except for the
representations and warranties contained in Sections 3.2 and 3.3, which shall
not expire. Buyer shall not be entitled to assert a claim for indemnification
under this Section 6 unless (i) such claim is asserted in writing prior to 12
months following the Closing Date, or (ii) such claim relates to any of the
matters set forth in the first sentence of this Section 6.3, which may be
asserted at any time prior to the expiration of such
representations.

           

          6.4 Sole
Basis for Recovery. The parties intend Article 6 to be the exclusive
method
for compensating Buyer for claims relating to the Company and the transactions
contemplated by this Agreement.

           

          6.5 Insurance.
With respect to any matter covered by this Article 6, the Company
shall use reasonable efforts to assert a claim under any applicable insurance
policy and any indemnification claim shall be net of any insurance proceeds
received by the Buyer.

           

          7. Miscellaneous.

           

          7.1 Notices.
All notices, requests, demands, and other communications hereunder
shall be in writing and shall be deemed given if delivered personally or sent by
fax during normal business hours of the recipient, the next business day if sent
by a national overnight delivery service, charges prepaid, or three days after
mailed by certified or registered mail, postage prepaid, return receipt
requested, to the parties, their successors in interest or their assignees at
the following addresses, or at such other addresses as the parties may designate
by written notice in the manner aforesaid.

           

          7.2 Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS
MADE AND TO BE PERFORMED ENTIRELY WITHIN THAT STATE.

           

          7.3 Counterparts.
This Agreement may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute but one and the same instrument.

           

          7.4 Indemnification
for Brokerage. Buyer and the Company each represent and
warrant that no broker or finder has acted on its behalf in connection with this
Agreement or the transactions contemplated hereby. In addition to the
indemnification obligations contained in Section 6, each party hereto agrees to
indemnify and hold harmless the others from any claim or demand
for commissions or other compensation by any broker, finder or similar agent who
is or claims to have been employed by or on behalf of such ply.

           

          
            
              
              

            

            
              6

              
                

              

            

            
              
              

            

          

           

          7.5 Complete
Agreement. This Agreement, the Schedules hereto and the documents
delivered pursuant to this Agreement form or will form the entire agreement
between the parties hereto with respect to the transactions contemplated herein
and shall supersede all previous oral and written and all contemporaneous oral
negotiations, commitments, and understandings.

           

          7.6 Interpretation.
The headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement.

           

          7.7 Severability.
Any provision of this Agreement which is invalid, illegal, or unenforceable
in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent
of such invalidity, illegality, or unenforceability, without affecting in any
way the remaining provisions hereof in such jurisdiction or rendering that or
any other provision of this Agreement invalid, illegal, or unenforceable in any
other jurisdiction.

           

          7.8 Knowledge:
Due Diligence Investigation. All representations and
warranties
contained herein which are made to the knowledge of the Company shall mean to
the knowledge of David M. Morse, Joseph Scalisi and Desiree Mejia ("Executive
Officers"). The Executive Officers shall be deemed to have "knowledge" of a
matter for purposes of the warranties and representations contained herein if
such matter has come, or should reasonably be expected to have come, to the
attention of the Executive Officers of the Company after conducting a reasonable
investigation.

           

          7.9 Expenses
of
Transactions.
All fees, costs and expenses incurred by Buyer or the
Company in connection with the transactions contemplated by this Agreement shall
be borne by the party incurring the same.

           

          7.10
Amendment.
The terms of this Agreement can be amended only by a written agreement of the
Buyer and the Company.

           

          7.11
Counterparts.
This Agreement may be executed in two or more identical counterparts, all of
which shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to each other
party; provided that a facsimile signature shall be considered due execution and
shall be binding upon the signatory thereto with the same force and effect as if
the signature were an original, not a facsimile signature.

           

          
            
              
              

            

            
              7

              
                

              

            

            
              
              

            

          

           

          IN WITNESS WHEREOF, the
undersigned duly execute this Agreement as of the date first
written above.

           

          
            
              
                
                  
                    
                      
                        	 	 	 	 	 
	COMPANY	 	 	 	 
	 	 	 	 	 
	
                                LOCATION
      BASED TECHNOLOGIES, INC

                                a
      Nevada corporation

                              	 	 	 	 
	 	 	 	 	 
	
                                /s/
      David M. Morse

                              	 	 	
                                 

                              	 
	
                                David
      M.Morse, Chief Executive Officer

                              	 	 	
                                 

                              	 

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            	 	 	 	 	 
	
                    /s/Desiree
      Mejia

                  	 	 	
                     

                  	 
	
                    Desiree
      Mejia, Secretary

                  	 	 	
                     

                  	 

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 	 	 	 	 
	BUYER	 	 	 	 
	 	 	 	 	 
	AFFINITAS
      CORPORATION	 	 	 	 
	 	 	 	 	 
	
                                      /s/ M.
      David Steier

                                    	 	 	
                                       

                                    	 
	
                                      David
      Steier, CFO

                                    	 	 	
                                       

                                    	 

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    8

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