Document:

ex_10-43.htm

    
      

      

    

    
      Exhibit 10.43

       

       

      PROMISSORY
NOTE

       

      
        	$100,000.00  	
                    Orange
      County, California

              
	 	
                 May 27,
      2009

              

      

                                                                                         

      FOR VALUE
RECEIVED, the undersigned, Location Based Technologies, Inc., a Nevada
corporation  (referred to herein as the “Borrower”), hereby
unconditionally promises to pay to the order of Netgain Financial, Inc., its
endorsees, successors and assigns (the “Holder”), in lawful money of the United
States, the principal sum of One Hundred Thousand Dollars
($100,000).

       

      1.           Terms of
Repayment.  Principal of and interest on this Note shall be due
six months from date of issuance or upon a minimum of Five Million Dollars
($5,000,000) net to the company is raised.

       

      a.           Upon
the execution and delivery of this Note, the Holder shall disburse to the
Borrower the sum of $100,000, which is the principal amount. All remaining
amounts outstanding under this Note shall mature and become due and payable in
full on November 27, 2009 (the "Maturity Date"), subject to any prior payment
required by this Note, including, without limitation.

       

      b.           The
Lender shall receive 25,000 shares of the Company's restricted common
stock.  The Holder shall receive the stock certificate within ten (10)
business days of signing.

      

      2.           Interest
Rate.  This Note shall accrue interest on the principal for a
period of six (6) months from the date of this Note at a rate of twelve percent
(12%) per annum (the “Interest Rate”).  Interest shall be calculated
on the basis of a 365-day year for the actual number of days elapsed. All
payments hereunder are to be applied first to the payment of accrued interest,
and the remaining balance to the payment of principal.

      

      3.           Conversion.  At
the option of the Company and upon approval from the Holder, the principal and
accrued interest may be converted into shares of the Company’s restricted common
stock.  The conversion rate is determined as the average closing stock
price of the Company’s common stock for the ten (10) business days prior to the
conversion grant date.

      

      4.           Events of
Default.  If any of the events of default specified in this
Section shall occur, Holder may, so long as such condition declare the entire
principal and unpaid accrued interest hereon immediately due and payable, by
notice in writing to the Company, this Note and any other obligations of the
Borrower to the Lender, shall become due immediately, without demand or
notice:

       

      
        a.           Default
in the payment of the principal or unpaid accrued interest of this Note when due
and payable; or

         

        b.           Filing
of bankruptcy proceedings involving the Company.

         

      

      5.           Successors and Assigns:
Assignment.  Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties
hereto.  Nothing in this Note, express or implied, is intended to
confer upon any party, other than the parties hereto and their successors and
assigns, any rights, remedies, obligations or liabilities under or by reason of
this Note, except as expressly provided herein.  The Company may not
assign this Note or any of the rights or obligations referenced herein without
the prior written consent of Holder.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      6.           Prepayment.  This
Note may be prepaid in whole or in part, at any time, without the prior written
consent of the Lender. 

       

      7.           Governing
Law.  This agreement is entered into in Orange County,
California, and shall be construed in accordance with and governed by the laws
of the State of California applicable to contracts made and to be performed in
California.  Further, the parties agree that venue shall rest solely
and exclusively in Orange County, California, and any challenge or objection
thereto is hereby waived.

       

      8.          
Notices.  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 the Holder, then the last known address on file
with the Company.

      

      9.           Heading;
References.  The headings have been inserted for convenience
only and are not to be considered when construing the provisions of this
Agreement.

      

           
10.          Entire
Agreement.  This Agreement constitutes the entire understanding
between the parties hereto in respect of the terms of this Note by the Holder
and by the 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, the
undersigned has executed this Promissory Note as of the date first set forth
above.

       

      The
“Holder”

      
        
          	 	 	 	 	 
	
                  By:

                	 	 	
                   

                	 
	
                  Name:
      Brian C. Quinn

                  Netgain Financial, Inc.

                	 	 	
                   

                	 

        

         

      

      The
“Borrower”: Location Based Technologies, Inc.

      
        
          	 	 	 	 	 
	
                  By:

                	 	 	
                   

                	 
	
                  Name:  Joseph
      F. Scalisi

                  CDO
      & Co-President

                	 	 	
                   

                	 

        

      2ex10_1.htm

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

This Employment Agreement (the "Agreement"), entered into effective as of the 30th day of May 2009, by and between RICK'S CABARET INTERNATIONAL, INC., a Texas corporation (the "Company"), and PHIL
MARSHALL ("Executive").

W I T N E S S E T H:

WHEREAS, Company desires to employ Executive as provided herein; and

WHEREAS, Executive desires to accept such employment.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.              Employment.  Company hereby employs Executive and Executive hereby accepts employment with Company upon the terms and conditions hereinafter set forth.

2.              Duties.  Subject to the power of the Board of Directors of the Company to elect and remove officers, Executive will serve the Company as its Chief Financial Officer and will faithfully and
diligently perform the services and functions relating to such office or otherwise reasonably incident to such office, provided that all such services and functions will be reasonable and within Executive's area of expertise.  Executive will, during the term of this Agreement (or any extension thereof), devote his full business time, attention and skills and best efforts to the promotion of the business of the Company.  The foregoing will not be construed as preventing Executive from making
investments in other businesses or enterprises provided that (a) Executive agrees not to become engaged in any other business activity that interferes with his ability to discharge his duties and responsibilities to Company and (b) Executive does not violate any other provision of this Agreement.

3.              Term.  Subject to the terms and conditions hereof, the term of employment of Executive will commence as of the date hereof (the "Commencement Date") and will end on that date in the year 2011,
unless earlier terminated by either party pursuant to the terms hereof.  The term of this Agreement is referred to herein as the "Term."

4.              Compensation and Benefits During the Employment Term.

	
  
	
(a)
	
Salary.  Commencing upon the date of this Agreement, Executive will be paid an annual base salary of $200,000, payable bi-weekly (the "Salary").  At any time and from time to time the Salary may be increased for the remaining portion of the term if so determined by the Compensation Committee of the Board of Directors of the Company after
a review of Executive's performance of his duties hereunder.

	
  
	
(b)
	
Bonus.  As further compensation, Executive will be eligible for bonuses as determined from time to time by the Compensation Committee of the Board of Directors of the Company.

 

Employment Agreement - Page 1

 

  

  

  

	
  
	
(c)
	
Expenses. Upon submission of a detailed statement and reasonable documentation, Company will reimburse Executive in the same manner as other executive officers for all reasonable and necessary or appropriate out-of-pocket travel and other expenses incurred by Executive in rendering services required under this Agreement.

	
  
	
(d)
	
Benefits;  Insurance.

	
  
	
(i)
	
Medical, Dental and Vision Benefits.  During this Agreement, Executive and his dependents will be entitled to receive such group medical, dental and vision benefits as Company may provide to its other executives, provided such coverage is reasonably available, or be reimbursed if Executive is carrying his own similar insurance.

	
  
	
(ii)
	
Benefit  Plans.  The Executive will be entitled to participate in any benefit plan or program of the Company which may currently be in place or implemented in the future.

	
  
	
(iii)
	
Other Benefits.  During the Term, Executive will be entitled to receive, in addition to and not in lieu of base salary, bonus or other compensation, such other benefits and normal perquisites as Company currently provides or such additional benefits as Company may provide for its executive officers in the future.

	
  
	
(e)
	
Vacation.  Executive will be entitled to two weeks paid vacation each year of this Agreement.

5.              Confidentiality and Non-Competition.

	
  
	
(a)
	
Confidentiality.  In the course of the performance of Executive's duties hereunder, Executive recognizes and acknowledges that Executive may have access to certain confidential and proprietary information of Company or any of its affiliates.  Without the prior written consent of Company, Executive shall not disclose any such confidential
or proprietary information to any person or firm, corporation, association, or other entity for any reason or purpose whatsoever, and shall not use such information, directly or indirectly, for Executive's own behalf or on behalf of any other party.  Executive agrees and affirms that all such information is the sole property of Company and that at the termination and/or expiration of this Agreement, at Company's written request, Executive shall promptly return to Company any and all such information
so requested by Company.

The provisions of this Section 5 shall not, however, prohibit Executive from disclosing to others or using in any manner information that:

 

Employment Agreement - Page 2

 

  

  

  

	
  
	
(i)
	
has  been  published  or  has become part of the public domain other than by acts, omissions or fault of  Executive;

	
  
	
(ii)
	
has been furnished or made known to Executive by third parties (other than those acting directly or indirectly for or on behalf of Executive) as a matter of legal right without restriction on its use or disclosure;

	
  
	
(iii)
	
was in the possession of Executive prior to obtaining such information from Company in connection with the performance of this Agreement; or

	
  
	
(iv)
	
is required to be disclosed by law.

	
  
	
(b)
	
Non-Competition.  Executive agrees that he will not, for himself, on behalf of, or in conjunction with any person, firm, corporation or entity, either as principal, employee, shareholder, member, director, partner, consultant, owner or part-owner of any corporation, partnership or any other type of business entity, directly or indirectly, own, manage,
operate, control, be employed by, participate in, or be connected in any manner with the ownership, management, operation, or control of any establishment which has live female nude or semi-nude entertainment (“Adult Entertainment Business”) or is in any business similar to or competitive with the Adult Entertainment Business presently conducted by the Company anywhere in the United States within a twenty (20) mile radius of any Adult Entertainment Business of the Company or any Adult Entertainment
Business of the Company under construction, under contract, in development or leased by or to the Company, for a period of one (1) year (the “Non-Compete Period”) from the termination of this Agreement.  However, in the event of the termination of Executive's employment pursuant to Section 7(d) or 7(f), the Non-Compete Period shall be six months.

Executive agrees not to hire, solicit or attempt to solicit for employment by Executive or any company to which he may be involved, either directly or indirectly, any party who is an employee or independent contractor of the Company or any entity which is affiliated with the Company, or any person who was an employee or independent contractor
of the Company or any entity which is affiliated with the Company within the two year period immediately following the termination of this Agreement.

Executive acknowledges that he has carefully read and considered all provisions of this Agreement and agrees that:

	
  
	
(i)
	
Due to the nature of the Company's business, the foregoing covenants place no greater restraint upon Executive than is reasonably necessary to protect the business and goodwill of the Company;

	
  
	
(ii)
	
These covenants protect the legitimate interests of the Company and do not serve solely to limit the Company's future competition;

Employment Agreement - Page 3

 

  

  

  

	
  
	
(iii)
	
This Agreement is not an invalid or unreasonable restraint of trade;

	
  
	
(iv)
	
A breach of these covenants by Executive would cause irreparable damage to the Company;

	
  
	
(v)
	
These covenants are reasonable in scope and are reasonably necessary to protect the Company's business and goodwill which the Company has established through its own expense and effort; and

	
  
	
(vi)
	
The signing of this Agreement is necessary as part of the consummation of the transactions described in the preamble.

6.              Indemnification.  The Corporation shall to the full extent permitted by law or as set forth in the Articles of Incorporation and the Bylaws of the Company, indemnify, defend and hold harmless
Executive from and against any and all claims, demands, liabilities, damages, loses and expenses (including reasonable attorney's fees, court costs and disbursements) arising out of the performance by him of his duties hereunder except in the case of his willful misconduct.

7.              Termination.  This Agreement and the employment relationship created hereby will terminate (i) upon the death or disability of Executive under section 7(a) or 7(b); (ii) with cause under Section
7(c); (iii) for good reason under Section 7(d); (iv) upon the voluntary termination of employment by Executive under Section7(e); or without cause under Section 7(f).

 

	
  
	
(a)
	
Disability.  The Company shall have the right to terminate the employment of the Executive under this Agreement for disability in the event Executive suffers an injury, illness, or incapacity of such character as to substantially disable him from performing his duties without reasonable accommodation by the Company hereunder for a period of more than
one hundred eighty (180) consecutive days upon the Company giving at least thirty (30) days written notice of termination.

	
  
	
(b)
	
Death.  This Agreement will terminate on the Death of the Executive.

	
  
	
(c)
	
With Cause.  The Company may terminate this Agreement at any time because of (i) Executive's material breach of any term of the Agreement, (ii) the determination by the Board of Directors in the exercise of its reasonable judgment that Executive has committed an act or acts constituting a felony or other crime involving moral turpitude, dishonesty
or theft or fraud; or (iii) Executive's gross negligence in the performance of his duties hereunder, provided, however, that the Company shall not terminate this Agreement pursuant to Section 7(c)(i) or 7(c)(iii) unless the Company shall first have delivered  to  the Executive a notice which specifically identifies such breach or misconduct and the executive shall not have cured the same within fifteen (15) days after receipt of such notice.

 

Employment Agreement - Page 4

 

  

  

  

	
  
	
(d)
	
Good Reason.  The Executive may terminate his employment for "Good  Reason" if:

	
  
	
(i)
	
he is assigned, without his express written consent, any duties materially inconsistent with his positions, duties, responsibilities, or status with the Company as of the date hereof, or a change in his reporting responsibilities or titles as in effect as of the date hereof; provided, however, that Executive must provide the Company with written notice of his dispute of such re-assignment of duties or change in his
reporting responsibilities under this Section 7(d)(i) and give the Company opportunity to cure such inconsistency.  If such dispute is not resolved within thirty (30) days, the Company shall submit such dispute to arbitration under Section 14.

	
  
	
(ii)
	
his compensation is reduced;

	
  
	
(iii)
	
the Company does not pay any material amount of compensation due hereunder and then fails either to pay such amount within the ten (10) day notice period required for termination hereunder or to contest in good faith such notice.  Further, if such contest is not resolved within thirty (30) days, the Company shall submit such dispute to arbitration under Section 14.

	
  
	
(e)
	
Voluntary Termination.  The Executive may terminate his employment voluntarily.

	
  
	
(f)
	
Without Cause.  The Company may terminate this Agreement without cause.

8.              Obligations of Company Upon Termination.

	
  
	
(a)
	
In the event of the termination of Executive's employment pursuant to Section 7 (a), (b), (c) or (e), Executive will be entitled only to the compensation earned by him hereunder as of the date of such termination (plus life insurance or disability benefits if applicable and provided for pursuant to Section 4(d)).

	
  
	
(b)
	
In the event of the termination of Executive’s employment pursuant to Section 7 (d) or (f), Executive will be entitled to receive in one lump sum payment the full remaining amount under the Term of this Agreement to which he would have been entitled had this Agreement not been terminated.

9.              Waiver of Breach.  The waiver by any party hereto of a breach of any provision of this Agreement will not operate or be construed as a waiver of any subsequent breach by any party.

10.            Costs.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party will be entitled to reasonable attorney's fees, costs and necessary disbursements
in addition to any other relief to which he or it may be entitled.

 

Employment Agreement - Page 5

 

  

  

  

11.            Notices.  Any notices, consents, demands, requests, approvals and other communications to be given under this Agreement by either party to the other will be deemed to have been duly given if given in
writing and personally delivered or within two days if sent by mail, registered or certified, postage prepaid with return receipt requested, as follows:

	
  
	
If to Company:
	
Rick's Cabaret International, Inc.

10959 Cutten Road

Houston, Texas 77066

Attention: Eric Langan, CEO/President

	
  
	
If to Executive:
	
Phil Marshall

___________________________

___________________________

Notices delivered personally will be deemed communicated as of actual receipt.

12.            Entire Agreement.  This Agreement and the agreements contemplated hereby constitute the entire agreement of the parties regarding the subject matter hereof, and supersede all prior agreements and understanding,
both written and oral, among the parties, or any of them, with respect to the subject matter hereof.

13.            Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during this Agreement, such provision will be fully severable
and this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision never comprised a part hereof; and the remaining provisions hereof will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom.  Furthermore, in lieu of such illegal, invalid or unenforceable provision there will be added automatically as part of this Agreement a provision as similar in its terms to such illegal, invalid
or unenforceable provision as may be possible and be legal, valid and enforceable.

14.            Arbitration.  If a dispute should arise regarding this Agreement the parties agree that all claims, disputes, controversies, differences or other matters in question arising out of this relationship
shall be settled finally, completely and conclusively by arbitration in Houston, Texas in accordance with the Commercial Arbitration Rules of the American Arbitration Association (the "Rules").  The governing law of this Agreement shall be the substantive law of the State of Texas, without giving effect to conflict of laws.  A decision of the arbitrator shall be final, conclusive and binding on the Company and Executive.  Any arbitration held in accordance with this paragraph shall
be private and confidential and no person shall be entitled to attend the hearings except the arbitrator, Executive, Executive's attorneys, a representative of the Company, the Company's attorneys, and advisors to or witnesses for any party. The matters submitted to arbitration, the hearings and proceedings and the arbitration award shall be kept and maintained in the strictest confidence by Executive and the Company and shall not be discussed, disclosed or communicated to any persons except as may be required
for the preparation of expert testimony.  On request of any party, the record of the proceeding shall be sealed and may not be disclosed except insofar, and only insofar, as may be necessary to enforce the award of the arbitrator and any judgement enforcing an award.  The prevailing party shall be entitled to recover reasonable and necessary attorneys' fees and costs from the non-prevailing party and the determination of such fees and costs and the award thereof shall be included in the claims
to be resolved by the arbitrator hereunder.

 

Employment Agreement - Page 6

 

  

  

  

15.            Captions.  The captions in this Agreement are for convenience of reference only and will not limit or otherwise affect any of the terms or provisions hereof.

16.            Gender and Number.  When the context requires, the gender of all words used herein will include the masculine, feminine and neuter and the number of all words will include the singular and plural.

17.            Counterparts.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original
thereof.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

	  	
COMPANY:

	  	  	  
	  	
RICK'S CABARET INTERNATIONAL, INC.

	  	  	  
	  	  	  
	  	
By:
	
/Eric Langan/

	  	  	
Eric Langan, Chief Executive Officer and President

	  	  	  
	  	  	  
	  	  	  
	  	
EXECUTIVE:

	  	  	  
	  	  	  
	  	
By:
	
/Phil Marshall/

	  	  	
Phil Marshall

 

 

Employment Agreement - Page 7

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