Document:

ex_10-20.htm

    
      
        

        

      

      EXHIBIT
10.20

       

      CONSULTING AND
REPRESENTATION AGREEMENT

       

      BETWEEN

       

      WHIZBIZ,
LLC

       

      AND

       

      LOCATION
BASED TECHNOLOGIES INC.

       

       

      This
AGREEMENT made by and between J. Emilio Gayoso dba WhizBiz LLC (hereinafter
referred to as “WhizBiz”), with its principal office located at: 12 Meridian,
Dove Canyon CA 92679 and Location Based Technologies Inc (a Nevada
corporation and hereinafter referred to as “Company”), with its principal office
located at 4989 E. La Palma Ave., Anaheim CA 92807

       

      WHEREAS,
Company desires to retain Whizbiz, and Whizbiz desires to be retained as
Company’s consultant and sales representative for the products and territories
identified below, all on the terms and conditions set forth in this
agreement,

       

      NOW
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, each of the parties hereto intending to be legally bound, it is agreed
as follows:

       

      
        	
                1.

              	
                DEFINITIONS

              

      

       

      
        	
                 
      

              	
                A.

              	
                “Products”
      shall mean the products currently manufactured and/or distributed by
      Company as indicated on Exhibit A of this
  Agreement.

              

      

       

      
        	
                 
      

              	
                B.

              	
                “Territory”
      shall mean defined accounts and/or classes of trade within a geographical
      area as set forth in Exhibit B of this
  Agreement.

              

      

       

      
        	
                 
      

              	
                C.

              	
                “Customer”
      shall mean any accounts/entities covered by Territory as set forth in
      Exhibit B of this agreement.

              

      

       

      
        	
                 
      

              	
                D.

              	
                “House
      Accounts” shall mean those accounts in the Territory for which sales are
      non-commissionable.  Customers designated by Company as House
      Accounts are listed in Exhibit D of this agreement and may be added to or
      modified from time to time by Company at it’s sole
      discretion.  In the event that an original Whizbiz customer of
      Company’s products is designated as a “House Account”, commissions for all
      such customers is payable to Whizbiz for six (6) months following the
      “House Account” designation.

              

      

       

      
        	
                 
      

              	
                E.

              	
                “Net
      Invoice Price” shall mean the total price at which an order is invoiced to
      the customer prior to any discount offered by Company in compensation for
      early payment.  Excluded from the net invoice price are all
      shipping and mailing costs, duties, taxes, and insurance, and related
      adjustments granted to the customer by Company as shown on the face of the
      invoice.

              

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        	
                2.

              	
                 APPOINTMENT
      AND AUTHORITY OF WHIZBIZ

              

      

       

      
        	
                 
      

              	
                A.

              	
                Subject
      to the terms and conditions of this Agreement, Company appoints Whizbiz as
      its exclusive selling agent for the Products to OEM/ODM, VARs, System
      Integrators, and Distributors (with the potential exception of BDI/Laguna
      and GE Thompson) in the Territory, and Whizbiz accepts the appointment and
      agrees to sell and promote the sale of the products.  There is a
      non-exclusive arrangement for direct sales of product to Resellers by
      Ackrich and Associates International Marketing,
  Inc.

              

      

       

      
        	
                 
      

              	
                B.

              	
                For
      sales to any Customer within the Territory, Company shall pay to Whizbiz a
      commission in accordance with terms outlined in Exhibit C
      below.

              

      

       

      
        	
                 
      

              	
                C.

              	
                Whizbiz
      shall neither advertise the Products outside the Territory nor solicit
      orders from outside the Territory without the prior written consent of
      Company.

              

      

       

      
        	
                 
      

              	
                D.

              	
                The
      relationship of Company and Whizbiz established by this Agreement is that
      of independent contractors, and nothing contained in this Agreement shall
      be construed to (i) give either party the power to direct and control the
      day-to-day activities of the other, (ii) constitute the parties as
      partners, joint ventures, co-owners or otherwise as participant in a joint
      undertaking, or (iii) allow Whizbiz to create or assume any obligation on
      behalf of Company for any purpose whatsoever.  All financial and
      other obligations associated with Whizbiz’s business are the sole
      responsibility of Whizbiz.

              

      

       

      
        	
                3.

              	
                COMPENSATION

              

      

       

      
        	
                 
      

              	
                A.

              	
                As
      full payment for any and all services rendered by Whizbiz and in
      consideration of the effort of Whizbiz and all of the expenses incurred by
      Whizbiz, Company agrees to pay to Whizbiz, and Whizbiz agrees to accept, a
      monthly retainer fee and commissions on sales of the Products which shall
      be calculated as set forth in Exhibit
C.

              

      

       

      
        	
                 
      

              	
                B.

              	
                The
      commission shall apply to all orders, subject to terms as specified in
      Exhibit C, from all Customers in the Territory, with the exceptions noted
      in 2A above, that have been accepted by Company, whether or not such
      orders were originally solicited by
Whizbiz.

              

      

       

      
        	
                 
      

              	
                C.

              	
                In
      no case will any compensation paid to Company employees be deducted from
      commissions due Whizbiz.

              

      

       

      
        	
                 
      

              	
                D.

              	
                Monthly
      retainer and commissions will be paid on or before the 15th day of each
      month during the term of this agreement. Commissions not paid within the
      agreed payment terms will be subject to finance charges.  Annual
      Interest Rate: 18% or 1.5% per month on balance due.  Bonuses
      will be listed in Attachment A.

              

      

       

      
        	
                 
      

              	
                E.

              	
                Company
      shall have the absolute right to chargeback commissions on all shipments
      not paid by an authorized Customer over ninety (90) days past the invoice
      date, provided Company re-credits Whizbiz for the appropriate commission
      applied to actual partial or full payments, less fees incurred in the
      process of collecting the payments, subsequently received from the
      authorized Customer.

              

      

       

      
        	
                 
      

              	
                F.

              	
                Company
      reserves the right to chargeback (debit) the full amount of paid
      commissions on products returned by customer to Company for
      credit.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        
          	
                   
      

                	
                  G.

                	
                  
                    Payment
      of commissions shall be in United States dollars and shall be subject to
      all applicable governmental regulations and rulings, including the
      withholding of any taxes required by
law.

                  

                

        

         

      

      
        	
                 
      

              	
                H.

              	
                Company
      shall submit to Whizbiz monthly statements of the commissions due and
      payable to Whizbiz under the terms of this Agreement, with reference to
      the specific accounts on which the commissions are being
      paid.  Company will submit or cause authorized two-tier
      distributors to submit, at No Charge to Whizbiz, an electronic report
      including all sales made in the previous month by named customer bill to,
      including separate ship to locations and zip
  codes.

              

      

       

      
        	
                4.

              	
                SALE
      OF THE PRODUCTS

              

      

       

      
        	
                 
      

              	
                A.

              	
                All
      sales shall be at prices and upon terms established by Company and Company
      shall have the right to establish, change, alter, or amend prices and
      other terms and conditions of sale in its sole
      discretion.  Whizbiz shall not accept orders in Company’s name,
      make price quotations or delivery promises without Company’s prior
      approval.

              

      

       

      
        	
                 
      

              	
                B.

              	
                All
      orders obtained by Whizbiz shall be subject to acceptance by Company at
      its principal office currently located at the address listed for Company
      at the beginning of this Agreement, and all quotations by Whizbiz shall
      contain a statement to that effect.  Whizbiz shall have no
      authority to make any acceptance/delivery commitments to any
      customers.  Company shall send copies to Whizbiz of any written
      acceptances on commissionable
orders.

              

      

       

      
        	
                 
      

              	
                C.

              	
                Company
      shall have the sole right of credit approval or credit refusal for
      customers in all cases.

              

      

       

      
        	
                 
      

              	
                D.

              	
                Company
      shall render all invoices directly to the customers. Invoice payments
      shall be made directly to Company by
customers.

              

      

       

      
        	
                 
      

              	
                E.

              	
                It
      is expressly understood by Whizbiz that full responsibility for all
      collection rests with Company.

              

      

       

      
        	
                 
      

              	
                F.

              	
                Company
      shall furnish Whizbiz, at no expense to Whizbiz, samples, catalogs,
      literature and any other material necessary for the proper promotion and
      sales of its products in the
territory.

              

      

       

      
        	
                 
      

              	
                G.

              	
                Whenever
      Whizbiz, at Company’s request, takes possession of Company’s products for
      the purpose of delivering such products to customers or for any other
      purpose, the risk of loss or damage to or destruction of such products
      shall be borne by Company, and Company shall indemnify and hold Whizbiz
      harmless against any claims, debts, liabilities or causes of action
      resulting from any such loss, damage or
  destruction.

              

      

       

      
        	
                5.

              	
                PRODUCT
      WARRANTY AND PRODUCT AVAILABILITY

              

      

       

      
        	
                 
      

              	
                A.

              	
                Any
      warranty for the Products shall run directly from Company to the customer,
      and pursuant to the warranty the customer shall return any allegedly
      defective Products to Company or designated depot.  Whizbiz
      shall have no authority or responsibility to accept any returned
      Products.

              

      

       

      
        	
                 
      

              	
                B.

              	
                Under
      no circumstances shall Company be responsible to Whizbiz or any other
      party for its failure to fill accepted orders, or for its delay in filling
      accepted orders, when such failure or delay is due to any cause beyond
      Company’s reasonable control.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	
                6.

              	
                WHIZBIZ’S
      RELATIONSHIP AND CONDUCT OF
BUSINESS

              

      

       

      
        	
                 
      

              	
                A.

              	
                Whizbiz
      will conduct all of its business in its own name and in such manner as it
      may see fit.  Whizbiz will pay all expenses of its office,
      activities and domestic travel within the contiguous United States and be
      responsible for the acts and expenses of its employees.  It will
      be Company’s responsibility to provide resellers with more extensive
      technical training seminars, technical written support materials, and a
      reseller technical support hot line to explain to customer’s sales staff
      differences between Company products and competitive
      products.  Company agrees to train and educate Whizbiz’s
      customer service personnel to the extent of Company’s
      abilities.

              

      

       

      
        	
                 
      

              	
                B.

              	
                Whizbiz
      shall not, without Company’s prior written approval, alter, enlarge, or
      limit orders, make representations or guarantees concerning Company’s
      products or accept the return of, or make any allowance for such
      products.

              

      

       

      
        	
                 
      

              	
                C.

              	
                Whizbiz
      agrees that, during the term of this Agreement, it will not promote or
      offer to sell any goods which are competitive with or substantially
      similar to the Products listed in Exhibit A unless agreed upon beforehand,
      in writing, by both parties.

              

      

       

      
        	
                7.

              	
                USE
      OF TRADEMARKS AND TRADENAMES

              

      

       

      
        
          	
                   
      

                	
                  A.

                	
                  
                    Whizbiz
      recognizes and concedes for all purposes that all trademarks, trade
      names, or identifying slogans affixed to Company’s products or any
      accompanying labels, containers, and cartons, whether or not registered,
      constitute the exclusive property of Company and cannot be used except in
      connection with promoting and selling Company products.  During
      the term of this agreement, Whizbiz is authorized by Company to use
      Company’s trademarks and logo in connection with Whizbiz’s promotion of
      Company products and public relations announcements, provided that
      Whizbiz’s use of such trademarks and logo shall be in accordance with
      Company’s policies from time to time communicated to
      Whizbiz.  Whizbiz shall have no interest in such trademarks or
      logo except as herein expressly provided, and Whizbiz’s use of such
      trademark and logo shall cease immediately upon termination or expiration
      of this Agreement.

                  

                

        

         

      

      
        
          	
                  8.

                	
                  INDEMNIFICATIONS

                

        

         

      

      
        	
                 
      

              	
                A.

              	
                Company
      shall be solely responsible for the design, development, supply,
      production, and performance of its products and the protection of its
      tradenames.  Company agrees to indemnify and hold Whizbiz
      harmless against and to pay all losses, costs, damages and expenses
      whatsoever, including reasonable attorney fees, which Whizbiz may sustain
      or incur on account of infringement or alleged infringement of patents,
      trademarks, or tradenames, resulting from the sale of Company’s products,
      or arising on account of warranty claims or product liability
      matters.  Whizbiz will promptly deliver to Company any notices
      or papers served upon it in any proceeding covered by this indemnity, and
      Company will defend same at its expense.  Whizbiz shall,
      however, have the right to participate in the defense at its own
      expense.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                B.

              	
                Whizbiz
      shall be solely responsible for, and shall indemnify and hold Company free
      and harmless from, any and all claims, damages or lawsuits (including
      Company’s attorney’s fees) arising out of the acts of Whizbiz, its
      employees or its agents.  Company will promptly deliver to
      Whizbiz any papers served upon it in any proceeding covered by this
      indemnity, and Whizbiz will defend same at its expense.  Company
      shall, however, have the right to participate in the defense at its own
      expense.

              

      

       

      
        	
                9.

              	
                TERMS
      OF AGREEMENT AND TERMINATION

              

      

       

      
        	
                 
      

              	
                A.

              	
                This
      agreement shall be effective on the day January 1, 2008, and shall
      continue until December 31, 2008.  It shall automatically be
      renewed from year to year thereafter unless terminated by either party
      upon ninety (60) days written notice to the other by registered or
      certified mail prior to the end of the initial term of this Agreement, or
      any renewal term.

              

      

       

      
        	
                 
      

              	
                B.

              	
                Termination
      for Convenience: This agreement may be terminated by either party for any
      reason at any time by giving the other party written notice ninety (60)
      days in advance.  After the first year of service, if Company
      terminates Whizbiz under this clause Whizbiz will be entitled to a
      termination settlement of three (3) month's compensation beyond the 60 day
      period (based on the average monthly commission of the twelve full months
      prior to the termination notice plus any applicable retainer
      fees.

              

      

       

      
        	
                 
      

              	
                C.

              	
                Termination
      for Cause: If either party defaults in the performance of any provision of
      this Agreement, then the non-defaulting party may give written notice to
      the defaulting party that if the default is not cured within thirty (30)
      days, the Agreement will be terminated.  If the default is not
      cured, the Agreement shall automatically terminate at the end of that
      period.

              

      

       

      
        	
                 
      

              	
                D.

              	
                Termination
      of Insolvency: This Agreement shall terminate, without notice, (a) upon
      the institution by or against either party for insolvency, receivership or
      bankruptcy proceedings, (b) upon Whizbiz making an assignment for the
      benefit of creditors, or (c) upon Whizbiz
  dissolution.

              

      

       

      
        	
                 
      

              	
                E.

              	
                Sale
      of company’s business: In the event Company sells or otherwise disposes of
      its stock or assets, or merges or reorganizes Company in a manner which
      affects the production or sale of the Products being promoted and sold by
      Whizbiz, or in the event Company changes the legal structure of its
      business entity, Company shall pay Whizbiz commissions for all orders
      booked through the end of the notice period as provided in this Agreement,
      regardless of whether or when shipped by Company or its successor or
      acquirer.

              

      

       

      
        	
                10.

              	
                RIGHTS
      UPON TERMINATION

              

      

       

      
        
          	
                   

                	
                  Upontermination
      of this agreement for any reason, Whizbiz shall be entitled
      to:

                

        

         

      

      
        	
                 
      

              	
                A.

              	
                Commissions
      on all orders calling for shipment into Whizbiz’s territory which are
      dated or communicated to Company prior to the effective date of
      termination, regardless of when such orders are
  shipped.

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      
        	
                 
      

              	
                B.

              	
                Any
      partial termination of territory or products will be subject to the same
      terms and conditions as if the entire agreement were
      terminated.

              

      

       

      
        	
                11.

              	
                GENERAL

              

      

       

      
        
          
            	
                     

                  	
                    This
      Agreement constitutes the entire understanding of the parties; shall
      supersede any other oral or written agreements; and shall be binding upon
      and inure to the benefit of the parties’ successors and
      assigns.  It may not be modified in any way without the written
      consent of both parties.  Whizbiz shall not have the right to
      assign this agreement in whole or in part without Company’s written
      consent.

                  

          

           

        

      

      
        	
                12.

              	
                CHOICE
      OF LAWS

              

      

       

      
        
          
            
              	
                       

                    	
                      This
      Agreement shall be interpreted according to the laws of the State of
      California.

                    

            

             

          

        

      

      
        	
                13.

              	
                DISPUTES
      AND ARBITRATION

              

      

       

      
        
          
            
              	
                       

                    	
                      All
      disputes arising under this Agreement may be brought in Circuit Court of
      the State of California or the Federal District Court of California as
      permitted by law.  These Courts shall together have
      non-exclusive jurisdiction over disputes under this
    Agreement.

                    

            

            
              
              

               

              
                
                  	 

                

              

            

            
              
                	Location
      Based Technologies Inc.	 	 	Whizbiz LLC	 
	 	 	 	 	 
	
                        /s/
      David M. Morse

                      	 	 	
                        /s/ Jommy
      Gayoso

                      	 
	
                        David
      M. Morse

                      	 	 	
                        Jommy
      Gayoso

                      	 
	
                        Chief
      Executive Officer

                      	 	 	
                        
                          Managing
      Member

                        

                      	 
	      
                         

                        January
      2, 2008

                      	 	 	      
                         

                        January
      2, 2008

                      	 

              

            

          

        

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT
A

       

      PRODUCTS

       

      The term
“Products” as used in this Agreement shall mean the following:

       

      The
“Pocketfinder” family of products, services and derivatives

       

       

       

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT
B

       

      TERRITORY

       

      Value-Added
Resellers, System Integrators, OEM/ODM Accounts and Distributors within the
United States of America with the exception of those specifically excluded in
paragraph 2A of this document.

       

       

       

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT
C

       

      COMPENSATION

       

      Value
–Added Resellers, System Integrators, OEM/ODM and Distributors

      Whizbiz shall be entitled
to receive commissions equal to five (5) percent of net sales on all Products
sold to Value –Added Resellers, System Integrators and Distributors in the
Territory, excluding sales made to House Accounts. Commissions shall be paid
when the Product is shipped and invoiced by Company.

       

      Retainer

      Company agrees to pay a
baseline sales retainer of $10,000 per month for a maximum of 8 months or until
average monthly commissions due Whizbiz equal or exceed $15,000 per month. The
sales retainer amount is automatically due and payable on the 15th of each month
during the term of this contract.  Company will provide all reasonable
travel expenses until such time as commissions allow for Whizbiz to reimburse
accrued travel expenses.

       

      Bonuses

      From time to time during
the term of this agreement, Company may provide bonuses to Whizbiz for sales of
Products to designated accounts or for achieving predetermined sales targets by
class of trade.  When Whizbiz earns such bonuses, bonuses will be paid
at the time of payment of usual commissions for the products
sold.  See attachment A for Bonus information.

        
        

         

        
          
            
              	 

            

          

        

      

      
        
          
            	Location Based
      Technologies Inc.	 	 	Whizbiz
      LLC	 
	 	 	 	 	 
	
                    /s/
      David M. Morse

                  	 	 	
                    /s/ Jommy
      Gayoso

                  	 
	
                    David
      M. Morse

                  	 	 	
                    Jommy
      Gayoso

                  	 
	
                    Chief
      Executive Officer

                  	 	 	
                    
                      Managing
      Member

                    

                  	 
	
                     

                    
                      January
      2, 2008

                    

                  	 	 	      
                     

                    January
      2, 2008

                  	 

          

        

         

      

      
        
          
            
              
              

            

            
              9

              
                

              

            

            
              
              

            

          

        

      

       

      ATTACHMENT
A

      Bonuses

       

      Bonus
payments as of January, 2008 shall consist of but not be limited to the
following:

       

      
        	
                ·  

              	
                50,000
      warrants upon sales of 100,000 units which must be achieved within 6
      months of FCC approved devices. Warrants priced at FMV as of the date of
      signing this contract.  Must be exercised within 5 years of the award
      date.

                 

              

      

      
        	
                ·  

              	
                An
      additional 50,000 warrants upon sales of a total of 250,000 units achieved
      within 1 year of FCC approved devices and priced at FMV of the date of
      signing the original contract.  Must be exercised within 5 years of
      the award date.

                 

              

      

      
        	
                ·  

              	
                Additional
      100,000 warrants upon sales of 1,000,000 units achieved within 2 years of
      FCC approved devices and priced at FMV of the date of signing the original
      contract.  Must be exercised within 5 years of the award
      date.

                 

              

      

      
        	
                ·  

              	
                Should
      the company be acquired prior to the 2 years or prior to achieving
      1,000,000 unit sales then the additional 100,000 warrants will be granted
      on at least a pro rata basis.

              

      

       

       

      NOTE: FMV
for LBAS as of January 2, 2008 was $4.82/share.

       

       

       

       

      10ex_10-21.htm

    
      

      

    

    
      EXHIBIT
10.21

       

       

      CONSULTING
AGREEMENT

       

      This
Consulting Agreement ("Agreement"),
is entered into as of January 2, 2008 (the "Effective
Date") by and between Location Based Technologies, Inc (a Nevada
corporation)., and Tina Florance ("Consultant").

       

      W I T N E S
S E T H:

       

      WHEREAS,
Company is a technology and telecommunications company that has designed and
patented wireless communications products and systems combining advanced
wireless location based services technology to provide features
of  utilizing a proprietary software system; and

       

      WHEREAS,
Company wishes to assure itself of the services of Consultant for the period and
upon the terms and conditions provided in this Agreement; and

       

      WHEREAS,
Consultant is willing to serve and to provide consulting to the Company on a
project basis for said period and upon the terms and conditions provided in this
Agreement.

       

      NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the parties hereto agree as follows:

       

       

      1.           Period

       

      a.           Term.  Subject
to the terms and conditions of this Agreement, Company hereby agrees to use
Consultant for maintaining the accounting office. The capacity as set forth
herein, commencing on the Effective Date and continuing in full force and effect
until such time as the execution of each Task is completed, but in no event
longer than three (3) years from the Effective Date (the "Consultancy
Term").

       

      b.           Duties and
Responsibilities.  During the Term, Consultant agrees to devote
her working time and attention to the project and tasks faithfully and
efficiently perform all reasonable responsibilities and duties to the best of
her skills and abilities, in a competent and professional manner.

       

      c.           Services.  During
the Term, Consultant further agrees not to engage in any business or perform any
services that are competitive with the business of or services provided by
Company or that may be deemed to constitute a conflict of
interest.  Notwithstanding anything to the contrary contained in
 Section
1(c), Consultant shall not be prohibited from (i) rendering services to
relatives, charitable or community organizations; (ii) managing her personal
investments in such manner as to not interfere with the performance of her
duties hereunder; or (iii) owning no more than five percent (5%) of the equity
securities of a corporation or other entity, so long as (A) such services or
activities are not rendered to any business which is competitive with the
business of Company, and (B) such services or activities do not in any way
interfere with the performance of Consultant's duties and responsibilities
hereunder.

       

       

      2.           Compensation.  During
the Term, Consultant shall be entitled to the compensation package and benefits
provided below.

       

      a.           Base
Consulting   During the Consulting Term, in full consideration
for the services to be rendered by Consultant, Consultant shall compensation for
worked performed on an hourly basis set at $125.00 per hour. The Consultant will
invoice the Company on a monthly basis.  At any time,

       

      b.           Options for
Performance.  Consultant shall participate in the Stock
Incentive Plan of the Company based on Performance as follows:

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  NUMBER

                	
                  VESTING

                   

                
	
                  5,000
      options

                	
                  Issued
      to Tina Florance upon successful close of FY
      2008.  Warrants are to be priced at FMV as of date of
      signing.  These warrants must be exercised within five (5) years
      of the award date.

                   

                
	
                  5,000
      options

                	
                  Issued
      to Tina Florance upon successful close of FY
      2009.  Warrants are to be priced at FMV as of date of
      signing.  These warrants must be exercised within five (5) years
      of the award date.

                   

                
	
                  10,000
      options

                	
                  Issued
      to Tina Florance upon 1,000,000 units of FCC approved devices. Warrants
      are to be priced at FMV as of date of signing.  These warrants
      must be exercised within five (5) years of the award date.

                   

                

        

         

      

      
        *Should
the Company be acquired prior to two (2) years or prior to achieving the
milestones, the Company shall vest all options immediately.

         

        c.           Resignation.  Consultant
may resign her current position with Company and thereby terminate her
agreement, by giving thirty (30) days notice in writing.  Upon
resignation, Consultant terminates any and all participation in the Options for
Performance as described in Section 2. b.

         

        d.           Termination
of Consulting.  Company may Terminate Consulting at any time
during the Agreement by giving consultant thirty (30) days notice in
writing.  Upon Termination, Company is obligated to pay any and all
outstanding invoices.

         

         

      

      3.           Confidential
Information.

       

      a.           Company
Information.  Consultant acknowledges that during the course of
employment, Consultant will have access to information about Company and that
Consultant's employment with Company shall bring Consultant into close contact
with proprietary information of Company.  In recognition of the
foregoing, Consultant agrees at all times during and following Consultant's
employment with Company, to hold in confidence, and not to use, except for the
benefit of Company, or to intentionally disclose to any person, firm,
corporation or other entity without written authorization of Company, any
"Confidential Information" of Company which Consultant obtains or
creates.  Consultant understands that "Confidential
Information" means any Company proprietary information, technical data,
trade secrets or know-how, including, but not limited to, research, product
plans, products, services, suppliers, customer lists, prices and costs, markets,
software, developments, inventions, laboratory notebooks, processes, formulas,
technology, designs, drawing, engineering, hardware configuration information,
marketing, licenses, finances, budgets or other business information disclosed
to Consultant by Company in writing or by drawings of parts or equipment, or
created by Consultant during the period of Consultant 's term during working
hours.  Consultant understands that "Confidential Information"
includes information pertaining to any aspects of Company's business which is
either information not known by actual or potential competitors of Company or is
proprietary information of Company or its customers or suppliers, whether of a
technical nature or otherwise.  Consultant further understand that
Confidential Information does not include any of the foregoing items which have
become publicly known and made generally available through no wrongful act of
Consultant.

       

      b.           Third Party
Information. Consultant recognizes that Company has received and in the
future will receive confidential or proprietary information from third parties
subject to a duty on Company's part to maintain the confidentiality of such
information and to use such information only for certain limited
purposes.  Consultant agrees to hold all such confidential or
proprietary information in confidence and not to intentionally disclose it to
any person, firm or corporation or to use it except as necessary in carrying out
my work for Company consistent with Company's agreement with such third
party.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      4.           Inventions.

       

      a.           Inventions
Retained and Licensed.  Consultant represents and warrants to
Company that there are no inventions, original works of authorship,
developments, improvements, or trade secrets which were made by Consultant prior
to the commencement of her employment with the Company (collectively, "Prior
Invention(s)"), which belong solely to Consultant or belong to Consultant
jointly with another, which relate in any way to any of Company's proposed
businesses, products or research and development, and which are not assigned to
Company hereunder.  If, in the course of the Employment Period,
Consultant incorporates into a Company product, process or machine a Prior
Invention owned by Consultant or in which Consultant has an interest, Company is
hereby granted and shall have a non-exclusive, royalty-free, irrevocable,
perpetual, worldwide license (with the right to sublicense) to make, have made,
copy, modify, make derivative works of, use, sell and otherwise distribute such
Prior Invention as part of or in connection with such Company product, process
or machine.

       

      b.           Assignment
of Inventions.  Consultant agrees that Consultant will promptly
make full written disclosure to Company, will hold in trust for the sole right
and benefit of Company, and hereby assign to Company, or its designee, all my
right, title and interest throughout the world in and to any and all inventions,
original works of authorship, developments, concepts, know-how, improvements or
trade secrets, whether or not patentable or registerable under copyright or
similar laws, which Consultant may solely or jointly conceive or develop or
reduce to practice, or cause to be conceived or developed or reduced to practice
during the Employment Period that (i) relate at the time of conception or
development to the actual or demonstrably proposed business or research and
development activities of Company; (ii) result from or relate to any work
performed for Company during normal business hours; and (iii) are developed
through the use of Confidential Information (collectively, "Inventions").  Consultant
further acknowledges that all Inventions, which are made by Consultant (solely
or jointly with others) within the scope of and during the period of
Consultant’s employment with Company, are "works made for hire" (to the greatest
extent permitted by applicable law) and are compensated by the Base Salary,
unless regulated otherwise by law.

       

      c.           Inventions
on Consultant's Own Time.  The provisions of Section
7(a) and 7(b) above do not apply to any invention which qualifies fully
under the provisions of California Labor Code §2870, which provides as
follows:

       

      § 2870
- Invention on Own time - Exemption from Agreement

       

          (1).  Any
provision in an employment agreement which provides that an Consultant shall
assign, or offer to assign, any of her or her rights in an invention to his or
her employer shall not apply to an invention that the Consultant developed
entirely on his or her own time without using the employer's equipment,
supplies, facilities, or trade secret information except for those inventions
that either (i) relate at the time of conception or reduction to practice of the
invention to the employer's business, or actual or demonstrably anticipated
research or development of the employer; or (ii) result from any work performed
by the Consultant for the employer.

       

      (2).  To
the extent a provision in an employment agreement purports to require an
Consultant to assign an invention otherwise excluded from being required to be
assigned under subdivision (a) of Section 2870, the provision is against the
public policy of this state and is unenforceable.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      d.           Patent and
Copyright Rights.  Consultant agrees to assist Company, or its
designee, at Company's expense, in every reasonable way to secure Company's
rights in the Inventions and any copyrights, patents, trademarks, mask work
rights, moral rights, or other intellectual property rights relating thereto in
any and all countries, including the disclosure to Company of all pertinent
information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments, recordations, and all other instruments
which are necessary in order to apply for, obtain, maintain and transfer such
rights and in order to assign and convey to Company, its successors, assigns and
nominees the sole and exclusive rights, title and interest in and to such
Inventions, and any copyrights, patents, mask work rights, or other intellectual
property rights relating thereto.

       

       

      5.           Return of
Company Documents.  Consultant agrees that, at the time of
termination of consulting with Company for any reason, Consultant will deliver
to Company (and will not keep in my possession, recreate or deliver to anyone
else) any and all Confidential Information and all other documents, materials,
information or property belonging to Company, its successors or assigns.
Consultant further agrees that any property situated on Company's premises and
owned by Company, including disks and other storage media, filing cabinets or
other work areas, is subject to inspection by Company personnel at any time with
or without notice.

       

       

      6.           Injunctive
Relief.  Consultant expressly acknowledge that any breach or
threatened breach of any of the terms and/or conditions set forth in Sections 6
and 7 of this Agreement will result in substantial, continuing and
irreparable injury to Company.  Therefore, Consultant hereby agrees
that, in addition to any other remedy that may be available to Company, Company
shall be entitled to injunctive relief, specific performance or other equitable
relief by a court of appropriate jurisdiction in the event of any breach of
threatened breach of the terms of this Agreement.

       

       

      7.           Miscellaneous.

       

      a.           Governing
Law. This Agreement is deemed to be entered into and performed in Orange
County, California.  Except as otherwise explicitly noted, this
Agreement shall be governed by and construed in accordance with the laws of the
State of California, without giving effect to the conflict of law rules of
California.  The parties hereby submit to the exclusive jurisdiction
of the state of California in connection with any dispute arising from or
related to this Agreement, and Los Angeles County shall be the sole venue
therefore.

       

      b.           Modifications
and Amendments.  This Agreement may be modified or amended only
by a written instrument executed by the parties hereto and approved in writing
by a duly authorized officer of Company, no modification or amendment shall be
effective absent such approval.

       

      c.           Independence and
Severability.  Each of the rights enumerated above shall be
independent of the others and shall be in addition to and not in lieu of any
other rights and remedies available to Company at law or in
equity.  If any of the covenants contained herein or any part of any
of them is hereafter construed or adjudicated to be invalid or unenforceable,
the same shall not affect the remainder of the covenant or covenants or rights
or remedies which shall be given full effect without regard to the invalid
portions.  If any of the covenants contained herein are held to be
invalid or unenforceable because of the duration of such provision or the area
or scope covered thereby, Consultant agrees that the court or arbitrator making
such determination shall have the power to reduce the duration, scope and/or
area of such provision and in its reduced form said provision shall then be
enforceable.

       

      d.           Notice.  For
the purpose of this Agreement, notices and all other communications provided for
in this Agreement shall be in writing and shall be deemed to have been duly
given as of the date if delivered in person or by telecopy, on the next business
day, if sent by a nationally recognized overnight courier service, and on the
second business day if mailed by registered mail, return receipt requested,
postage prepaid, and if addressed to the Company then at its principal place of
business, or if addressed to Consultant, then her last known address on file
with the Company.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      e.           Waiver.  The
observation or performance of any condition or obligation imposed upon
Consultant hereunder may be waived only upon the written consent of
Company.  Such waiver shall be limited to the terms thereof and shall
not constitute a waiver of any other condition or obligation of Consultant under
this Agreement.

       

      f.           Assignment.  This
Agreement is personal to Consultant and shall not be assigned by her. Company
may assign its rights hereunder to (a) any corporation or other legal entity
resulting from any merger, consolidation or other reorganization to which
Company is a party or (b) any corporation, partnership, association or other
legal entity or person to which Company may transfer all or substantially all of
the assets and business of Company existing at such time.  All of the
terms and provisions of this Agreement shall be binding upon and shall inure to
the benefit of and be enforceable by the parties hereto and their respective
successors and permitted assigns.

       

      g.           Headings.  The
headings have been inserted for convenience only and are not to be considered
when construing the provisions of this Agreement.

       

      h.           Counterparts.  This
Agreement may be executed in one or more counterparts and transmitted by
facsimile, a copy of which shall constitute an original and each of which, when
taken together, shall constitute one and the same agreement.

       

      i.           Survival of
Provisions.  Notwithstanding anything to the contrary in this
Agreement, Sections 3,
4, 5, 6, and 7 of this Agreement shall survive the termination of this
Agreement for the period of time so specified or implied in such Sections,
respectively.

       

      j.           Arbitration.  Any
controversy, dispute or claim of any nature whatsoever involving Company and
Consultant or Consultant's spouse or family, including without limitation any
claims arising out of, in connection with, or in relation to this Agreement or
Consultant's employment with Company, any claims of unlawful discrimination,
sexual harassment or wrongful termination, and any issues of arbitrability of
any such disputes, will be resolved by final and binding arbitration before the
American Arbitration Association in Los Angeles, California, in accordance with
its employee arbitration rules.

       

      k.           Entire
Agreement.  This Agreement constitutes the entire understanding
between the parties hereto in respect of the employment of Consultant by
Company, superseding all negotiations, prior discussions, prior written, implied
and oral agreements, preliminary agreements and understandings with Company or
any of its officers, employees or agents.

       

       

      IN
WITNESS WHEREOF, this five (5) page Agreement is executed and agreed to as of
January 2, 2008.

       

       

      
        CONSULTANT

         

        
          
            	
                    By:
      /s/ Tina Florance

                  	 	 	
                     

                  	 
	
                    Tina Florance

                  	 	 	
                     

                  	 
	
                     

                  	 	 	
                     

                  	 

          

        

         

        Location
Based Technologies, Inc.

         

        
          	 	 	 	 	 
	
                  By:
      /s/ David Morse

                	 	 	
                  By: Desiree Mejia 

                	 
	
                  David Morse – Chief Executive Officer

                	 	 	
                  Desiree Mejia – Chief Operating Officer

                	 

        

        
 

         

         

        5

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