Document:

Exhibit 10.3

Form of Amendment to Letter Agreement Regarding Conversion and Lock Up Letter for Others

February __, 2017

____________________

____________________

____________________

____________________

VIA ELECTRONIC MAIL

Re: Amendment to Letter Agreement regarding Conversion and Lock up Letter

Dear ________:

Reference is made to that certain letter agreement pursuant to which you agreed to convert your _________into restricted shares of Common Stock (the "Conversion Letter Agreement") and certain lock-up letter agreement prohibiting the sale or other transfer of all securities that you own in the Company as set forth therein (the "Lock Up Letter" and collectively with the Conversion Letter Agreement, the "Agreements"). Capitalized terms used herein which are not otherwise defined herein shall have the respective meanings ascribed thereto in such Agreements.

Both of the Agreements contained reference to the effect that the Offering is required to be completed on or before February 15, 2017; otherwise the Agreements would terminate and shall be of no further force and effect. Such date is hereinafter referred to as the "Outside Date."

In light of the fact that the Company recently filed an amendment to its Registration Statement on Form S-1 with the SEC to pursue its public offering and listing of its securities onto the NASDAQ (the "Offering"), we are requesting that the Outside Date be extended to March 31, 2017. By signing below, you are hereby agreeing to extend the Outside Date contained in both Agreements to March 31, 2017. Except as amended hereby, all terms and provisions of the Agreements shall continue unmodified and remain in full force and effect.

Kindly sign below where indicated and return to the undersigned by email. Thank you in advance for your cooperation.

Very truly yours,

ACTIVECARE, INC.

By _____________________________

Name:

Title:

ACCEPTED AND AGREED:

_______________________________

Date: __________________________Exhibit 10.4

 

AMENDMENT OF FORBEARANCE EXTENSION UNDER

LOAN AND SECURITY AGREEMENT

This Amendment of Forbearance Extension under Loan and Security Agreement (this "Forbearance Amendment") is entered into as of February 15, 2017 (such date, the "Forbearance Amendment Effective Date") by and between Partners for Growth IV, L.P., a Delaware limited partnership with its principal place of business at 1660 Tiburon Blvd., Suite D, Tiburon California 94920 ("PFG") and ActiveCare, Inc., a Delaware corporation with its principal place of business at 1365 West Business Park Drive, Suite 100, Orem, UT 84058 ("Borrower").

WHEREAS, PFG and Borrower entered into that certain Loan and Security Agreement dated as of February 19, 2016 (the "Loan Agreement") and certain other Security Documents (as defined below), pursuant to which PFG has made available credit to Borrower in the maximum aggregate principal amount of $4,500,000 of which (Facility A) $1,259,007 and (Facility B) $1,375,000 in the aggregate of Tranche 1 and Tranche 2 of Facility is outstanding on the Forbearance Amendment Effective Date;

WHEREAS, PFG and Borrower entered into that certain Forbearance under Loan and Security Agreement dated as of September 9, 2016, pursuant to which PFG agreed to forbear from exercising remedies under the Loan Agreement due to Borrower's "Specified Defaults" as defined therein until the earlier to occur of October 31, 2016 and certain therein-specified Termination Events (the "Original Forbearance");

WHEREAS, PFG and Borrower entered into an extension of the Original Forbearance on or about November 1, 2016 extending PFG's forbearance under the Loan Agreement due to Borrower's "Continuing Defaults" (as defined therein) until the earlier to occur of December 31, 2016 and certain therein-specified Termination Events;

WHEREAS, PFG and Borrower entered into a further extension of the Original Forbearance as of December 31, 2016 extending PFG's forbearance under the Loan Agreement due to Borrower's "Continuing Defaults" (as defined therein) until the earlier to occur of February 15, 2017 and certain therein-specified Termination Events (the "Last Expiring Forbearance");

WHEREAS, Borrower continues to be in default under the Loan Agreement and has asked PFG to again extend the Forbearance Period specified in the Last Expiring Forbearance;

NOW THEREFORE, the parties hereby agree as follows:

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND COLLATERAL: Borrower is indebted to PFG for Obligations pursuant to the Loan Documents, as set forth in the Recitals. Defined terms used but not otherwise defined herein shall have the same meanings set forth in the Loan Agreement. Repayment of the Obligations is secured by the Collateral, as described in the Loan Agreement and in an Intellectual Property Security Agreement and other documents of even date therewith. The above-described security documents, together with all other documents securing repayment of the Obligations, shall be referred to herein as the "Security Documents". Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations are referred to as the "Existing Loan Documents".

2. FURTHER EXTENSION OF FORBEARANCE PERIOD; CONTINUING OBLIGATIONS. The February 15, 2017 end date specified within the definition of "Forbearance Period" in the Last Expiring Forbearance is hereby amended to read "March 31, 2017". All other terms and conditions of the Last Expiring Forbearance shall remain in full force and effect. This further Forbearance extension does not constitute a waiver or release by PFG of any Obligations or of any Default or Event of Default which may arise in the future after the date hereof. The terms and conditions of the Last Expiring Forbearance shall remain in full force and effect, save for the amendment of the end date specified above.

3. CONDITIONS. The effectiveness of this Forbearance Amendment is conditioned upon each of:

(a) Execution and Delivery. Borrower shall have duly executed and delivered to PFG a counterpart of this Forbearance Amendment.

(b) Payment of PFG Expenses. Borrower shall have paid upon demand all PFG expenses (including all reasonable attorneys' fees and expenses) incurred in connection with this Forbearance Amendment.

4. GOVERNING LAW; VENUE. THIS FORBEARANCE AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. Borrower and PFG submit to the exclusive jurisdiction of the State and Federal courts in San Francisco County, California, in connection with any proceeding or dispute arising in connection herewith.

[Signature Page Follows]

This Forbearance Amendment is executed as of the date first written above.

Borrower: PFG:

 PARTNERS FOR GROWTH IV, L.P.

 ActiveCare, Inc.

By /s/ Jeffrey Peterson By /s/ Andrew Kahn

Name: Jeffrey Peterson Name: Andrew Kahn

	Title: CEO or President	
Title: Manager, Partner for Growth IV, LLC, its General Partner

By /s/ Eric Robinson

Name: Eric Robinson

Title: Secretary or CFOAmendment to Purchase and Sale Agreement

SECURED PROMISSORY NOTE

$2,506,248.00 Dallas, Texas February 15, 2017

FOR VALUE RECEIVED, the undersigned, ZEC, Inc., a Delaware corporation (“Maker”), promises to pay to the order of Karl M. Taft III and Michelle L. Taft (collectively, “Holder”), the principal sum of TWO MILLION FIVE HUNDRED AND SIX THOUSAND TWO HUNDRED FORTY EIGHT DOLLARS ($2,506,248.00), at the address designated in Section 9, or at such other place as Holder may from time to time designate in writing.

1.

Payments. The principal of this Note shall be due and payable in accordance with the schedule set forth on Appendix A, in the column entitled “Distributions to Selling Shareholders”.  The entire outstanding principal balance of this Note shall be due and payable no later than twelve (12) months following the date of this Note (plus the cure period set forth in this Note).  All payments hereunder shall be payable in lawful money of the United States of America which shall be legal tender for public and private debts at the time of payments.

2.

Prepayments. Maker shall have the right to prepay the principal under this Note in full or in part at any time and from time to time.  

3.

Default Remedies.  Maker shall be in default under this Note upon the happening of any condition or event set forth below (each, an “Event of Default”):

(a)

Maker shall fail to make any payment to Holder when due under this Note and such default shall continue unremedied for a period of ninety (90) days;

(b)

Maker shall be in default under that certain Security Agreement (herein so called) executed by Maker for the benefit of Holder;

(c)

Maker shall be in default under that certain Stock Pledge Agreement (herein so called) executed by Maker for the benefit of Holder; or

(d)

The commencement of any proceeding under any bankruptcy or insolvency laws by or against Maker which results in the entry of an order for relief which remains undismissed, undischarged or unbonded for a period of 60 days or more.

4.

Cumulative Rights.  No delay on the part of the Holder of this Note in the exercise of any power or right under this Note or under any other instrument executed pursuant hereto shall operate as a waiver thereof, nor shall a single or partial exercise of any power or right preclude other or further exercise thereof or the exercise of any other power or right.

5.

Waiver.  Maker waives demand, presentment, protest, notice of dishonor, notice of nonpayment, notice of intention to accelerate or notice of acceleration (other than notice of default pursuant to Section 3(a)), notice of protest and any and all lack of diligence or delay in collection or the filing of suit hereon which may occur, and agrees to all extensions and partial payments, without prejudice to the Holder hereof.

6.

Attorneys’ Fees and Costs.  In the event that this Note is collected in whole or in part through suit, arbitration, mediation, or other legal proceeding of any nature, then and in any such case there shall be added to the unpaid principal amount hereof all reasonable costs and expenses of collection, including, without limitation, reasonable attorney’s fees.

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7.

Governing Law.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO CONFLICTS OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF TEXAS OR ANY OTHER JURISDICTION) THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS.

8.

Usury.  All agreements between Maker and the Holder of this Note, whether now existing or hereafter arising and whether written or oral, are expressly limited so that in no contingency or event whatsoever, whether by acceleration of the maturity of this Note or otherwise, shall the amount paid, or agreed to be paid, to the Holder hereof for the use, forbearance or detention of the money to be loaned hereunder or otherwise, exceed the maximum amount permissible under applicable law.  

9.

Notices.  All notices of communication required or permitted hereunder shall be in writing and may be given by (a) depositing the same in United States mail, addressed to the party to be notified, postage prepaid and registered or certified with return receipt request, or (b) delivering the same in person or by overnight express to an officer or agent of such party:

(i)

If to Maker, addressed thereto at:

1002 North Central Expressway, Suite #495 

Richardson, TX 75080

Attention:  E. Thomas Layton; and

(ii)

If to Holder, addressed thereto at:

1002 North Central Expressway, Suite #499 

Richardson, TX  75080 

Attention:  Karl Taft

10.

 Security.  This Note is secured by a Security Agreement (herein so called) executed by Maker for the benefit of Holder, and is further secured by a Stock Pledge Agreement (herein so called) executed by Maker for the benefit of Holder.

THIS NOTE REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

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IN WITNESS WHEREOF, the undersigned have executed this Note on and as of the date first above written.

MAKER:

ZEC, INC.

By: __________________________

Name: E. Thomas Layton

Title: Chairman and CEO

AGREED AND ACKNOWLEDGED AS TO FORM

HOLDER:

__________________________

       Karl M. Taft III

__________________________

       Michelle L. Taft 

 

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Appendix A

Capital Allocation and Payment Schedule

					
	Net Capital Raise by Maker

	Distributions to Holders 1

	Repayment of outstanding advances from Holders to KT Chemicals, Inc.

	Contributions to KT Chemicals, Inc.’s  Working Capital

	Contributions to Maker’s Working Capital

	First  $1,500,000

	$956,248

	$193,752

	$100,000

	$250,000

	Next  $500,000

	$  300,000

	 
	$50,000

	$150,000

	Next  $500,000

	$  300,000

	 
	$50,000

	$150,000

	Next  $500,000

	$  300,000

	 
	$50,000

	$150,000

	Next  $500,000

	$  300,000

	 
	$50,000

	$150,000

	Next  $500,000

	$  350,000

	 
	 
	$150,000

	Next  $500,000

	 
	 
	$200,000

	$300,000

	$4,500,000

	$2,506,248

	$193,752

	$500,000

	$1,300,000

1  The full amount is due no later than twelve (12) months following the date of this Note; Maker’s failure to remit such sums when due (or within the cure period set forth in this Note) shall trigger Holder’s right to rescission as set forth in Section 4.4 of that certain Stock Purchase Agreement dated the date hereof, by and among Holder and Maker.

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