Document:

Exhibit 10.1

AMENDMENT #3

TO THE SECURITIES PURCHASE AGREEMENT AND

 TO THE $1,5000,000 PROMISSORY NOTE

This Amendment No. 3, dated March 1, 2017 (this "Amendment"), is by and between ActiveCare, Inc., a Delaware corporation (the "Issuer") and JMJ Financial (the "Investor") (referred to collectively herein as the "Parties")

WHEREAS, the Issuer and the Investor entered into a Securities Purchase Agreement Document SPA-09192016 (the "SPA") dated as of September 19, 2016, pursuant to which the Issuer issued to the Investor a $1,500,000 Promissory Note (the "Note"), a Warrant, and Origination Shares.  All capitalized terms not otherwise defined herein shall have the meanings given such terms in the SPA.

WHEREAS, the Issuer and the Investor previously entered into Amendment #1 to the SPA and the Note dated November 17, 2016;

WHEREAS, the Issuer and the Investor previously entered into Amendment #2 to the SPA and the Note dated January 30, 2017;

WHEREAS, the Investor has paid all $1,500,000 of Consideration to the Issuer under the Note; and

WHEREAS, the Issuer requests that the dollar amount of the Note be increased to permit the Investor to pay additional Consideration to the Issuer under the Note.

NOW, THEREFORE, the Issuer and the Investor agree to amend the SPA and the Note as follows:

	
1.

	
Note Amount.  The amount of the Note is hereby increased from $1,500,000 to $2,000,000. The first four sentences of the second paragraph of the Note are hereby amended and replaced with the following:

"The Principal Sum is up to $2,000,000 (two million) plus accrued and unpaid interest and any other fees.  The Consideration is $2,000,000 (two million) payable by wire.  The Investor shall pay $1,000,000 of Consideration in accordance with the attached Funding Schedule in its sole election.  The Investor may pay up to an additional $1,000,000 of Consideration to the Issuer in such amounts and at such dates as the Investor may choose, however, the Issuer has the right to reject any of those payments within 24 hours of receipt of rejected payments."

	
2.

	
SPA Amendments.  The references to a Note amount of $1,500,000 contained in Sections 1.1 and 1.4 of the SPA shall be amended to refer to a Note amount of $2,000,000.  All references to the SPA or the Note in any of the Transaction Documents, including any Warrants issued after the date of the SPA, shall refer to the SPA, as amended, and to the Note, as amended.

	
3.

	
TA Letters.  The Issuer agrees to increase the reserve for the Investor to $1,000,000 worth of shares of common stock of the Issuer for issuance of Origination Shares to the Investor.  The Issuer further agrees that the terms of the irrevocable instruction letter dated September 19, 2016 in which the Issuer irrevocably authorized and instructed American Stock Transfer & Trust Company, LLC to issue shares of common stock of the Issuer to the Investor without any further action or confirmation by the Issuer upon American Stock Transfer's receipt from the Investor of a Conversion Notice or Exercise Notice shall apply to the Note as amended and shall apply to all warrants the Issuer has issued to the Investor pursuant to the terms of the SPA as amended.  In addition, the Issuer agrees that the terms of the irrevocable instruction letter dated September 19, 2016 in which the Issuer irrevocably authorized and instructed American Stock Transfer & Trust Company, LLC to issue shares of common stock of the Issuer to the Investor without any further action or confirmation by the Issuer upon American Stock Transfer's receipt from the Investor of a request for issuance of Origination Shares pursuant to the Issuer's obligations under the SPA shall apply to all requests for issuance of Origination Shares pursuant to the Issuer's obligations under the SPA as amended.  If American Stock Transfer requires the Issuer and/or the Investor to deliver to American Stock Transfer new irrevocable instruction letters to give effect to the terms of this paragraph, the Issuer agrees that it will cooperate in good faith with the Investor in drafting and executing the new irrevocable instruction letters and any supporting documents required by American Stock Transfer and the Issuer shall promptly deliver the new irrevocable instruction letters to American Stock Transfer.

ALL OTHER TERMS AND CONDITIONS OF THE SPA AND THE NOTE, AS PREVIOUSLY AMENDED, REMAIN IN FULL FORCE AND EFFECT.

Please indicate acceptance and approval of this Amendment by signing below:

	
/s/ Jeffrey S. Peterson

	
/s/ Justin Keener

	
Jeffrey S. Peterson

	
JMJ Financial

	
ActiveCare, Inc.

	
Its Principal

	
Chief Executive OfficerExhibit

2017 DIRECTORS’ COMPENSATION POLICY

OBJECTIVE

Section 1261.22 of the Rules and Regulations of the Federal Housing Finance Agency require the Board of Directors to adopt a written policy to provide for the payment of reasonable compensation to Bank Directors for the performance of their duties as members of the Board of Directors.  Pursuant to that regulation, this Directors' Compensation Policy ("Policy") sets forth the activities and functions for which attendance is necessary and appropriate and may be compensated, and sets forth the methodology for determining the amount of compensation to be paid.  This Policy shall be reviewed annually by the Governance and Public Policy Committee. 

POLICY

Total Compensation

The compensation paid to Directors shall be in conformity with the guidelines set forth in this Policy.  The Policy guidelines on Director Compensation for 2017 are $137,500 for the Chair, $115,000 for the Vice Chair of the Board and for each Committee Chair, and $102,500 for each of the other Directors.  Compensation can exceed the guidelines set forth above based on a Director assuming additional responsibilities, such as chairing a Committee or Board meeting.

Quarterly Retainer

In order to compensate Directors for their time while serving as Directors outside of normal Committee and Board meetings, Directors shall be paid a quarterly retainer.  The retainer shall compensate Directors for their time preparing for meetings, attending Affordable Housing Advisory Council meetings, attending Bank System meetings, Board training sessions, and other activities outside of normal Committee and Board meetings.  The amount of the quarterly retainer varies depending on the responsibilities of the Director as set forth below:

Chairman                    $16,957
Vice Chairman                    $14,391
Committee Chairman                $14,391
Director                    $12,813

Board Meeting Fees 

In order to compensate Directors for their time while serving as Directors, each Director that attends a meeting of the Board of Directors (including Committee meetings and participating by telephone) shall be paid a Board Meeting Attendance Fee.  The amount of the Board Meeting Attendance Fee varies depending on the role served at the meeting.  The following Board Meeting Attendance Fees shall be paid to Directors in attendance at Board of Director's meetings (including telephonic Board meetings):

Chairman                    $5,806
Vice Chairman                    $4,786
Committee Chairman                $4,786
Director                    $4,270

In the absence of the Chairman, the Acting Chairman, whether it be the Vice Chairman or Chairman Pro Tem, shall receive the Chairman Board Meeting Attendance Fee.  Board Meeting Attendance Fees are paid per meeting day. Board meeting fees are rounded down to the nearest dollar.

Standing Committee Meeting Fees

In order to compensate Directors for their time while serving as Directors, each Director that attends a Standing Committee meeting (including participating by telephone) shall be paid a Standing Committee Meeting Attendance Fee.  The amount of the Standing Committee Meeting Attendance Fee varies among Directors in attendance at the meeting.  The following Standing Committee Meeting Attendance Fees shall be paid to Directors in attendance at Committee Director's meetings:

Chairman                    $5,806
Vice Chairman                    $4,786
Committee Chairman                $4,786
Director                    $4,270

Committee Meeting Attendance Fees are paid per meeting day, not per Committee meeting.  No Committee Attendance Fee will be paid if a Board Meeting Attendance Fee is paid for the same day. Committee meeting fees are rounded down to the nearest dollar.

Prorated Fees

A Director’s quarterly retainer fees will be prorated for the number of days in the quarter that they actually served on the Board in the event a Director leaves the Board mid-quarter. 

Methodology

In 2015, McLagan Partners conducted a director compensation study for the FHLBanks, which formed the basis for the Bank’s Director Compensation Policy, both as to the levels of compensation to be paid, as well as to the structure of how it would be paid.  In 2016, the Board did not immediately move Director compensation to the levels recommended by McLagan; instead, the Board transitioned to the recommended levels over a a two-year period.  

Attendance 

Directors must fulfill their responsibilities by regularly attending and participating, either in person or telephonically, in at least 75 percent of meetings of the Board of Directors and assigned Committees within a given calendar year.  The Board of Directors reserves the right to direct the Corporate Secretary to adjust downward or eliminate the fourth quarter retainer payment to any Director who fails to meet this attendance requirement.

Travel

The Directors shall be reimbursed for travel, subsistence and other related expenses incurred in connection with the Directors duties under the terms and conditions of the Bank's Travel and Expense Policy; provided, however, a Director may not be paid or reimbursed for gift or entertainment expenses.

Disclosure

The Bank shall disclose in its annual report to the Federal Housing Finance Agency the following items:

		
	(i)
	the sum of the total compensation paid to its Directors in that year;

		
	(ii)
	the sum of the total expenses paid to its Directors in that year; 

		
	(iii)
	the total compensation paid to each Director in that year;

		
	(iv)
	the total expenses paid to each Director in that year; 

		
	(v)
	the total of all expenses incurred at group functions that are not reimbursed to individual Directors in that year; 

		
	(vi)
	the total number of Board meetings and Committee meetings held in that year; 

		
	(vii)
	the total number of Board and Committee meetings that each Director attended in that year; and

		
	(viii)
	a summary of this Policy.

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