Document:

Exhibit 10.8

SETTLEMENT AGREEMENT

This Settlement Agreement ("Agreement") is made effective this 20th day of May, 2015 by and between ActiveCare, Inc., a Delaware corporation (the "Company"), and Advance Technology Investors, LLC ("ATI").

WHEREAS,    the Company and ATI entered into that certain Distribution Agreement dated October 3, 2013 (the "Distribution Agreement") and attached hereto as Exhibit A wherein ATI was granted an Exclusive Distributorship to the territory of New York, New Jersey and Connecticut by ATI paying the Company the sum of $495,500; and

WHEREAS,    the terms and conditions of the Distribution Agreement require the Company to make minimum payments of $30,000 per month into perpetuity unless terminated by one of the parties; and

WHEREAS,    the Company made a total of 10 monthly payments or $300,000 on the Distribution Agreement and is currently in default on the Distribution Agreement and owes ATI $300,000 in accrued payments ("Accrued Payments"); and

WHEREAS,    ATI received 450,000 Company warrants exercisable at $1 per share with an expiration date of September 30, 2018 (the "Warrants"); and

WHEREAS,    Company has the right to terminate the Distribution Agreement by paying aggregated payments to ATI of $500,000 (of which it has currently paid $300,000) plus shares equal to $500,000 divided by the previous average seven day closing price of the Company which is $.22 per share as to the effective date of this Agreement; and

WHEREAS,     the Company and ATI desire to settle and terminate the distribution Agreement.

NOW, THEREFORE,    in consideration of the foregoing, and the agreements set forth below, the parties agree as follows:

1.            Termination of Distribution Agreement.    The parties hereby mutually agree to the termination of the Distribution Agreement.

2.            Payment of Purchase of Distribution Agreement.    As consideration for the early termination of the Distribution Agreement by ATI and as a default penalty for not paying the Accrued Payments, the Company shall issue to ATI 3,000,000 common shares of the Common Stock of the Company ("Common Shares").  In addition, the Company will issue a promissory note in the principal amount of $300,000 with interest at 12% payable upon an equity raise in excess of $3,000,000 and with the ability to convert at anytime into common shares at $.30 per share (the "Promissory Note").  A copy of the Promissory Note is attached hereto as Exhibit B.  In addition, the Company agrees to pay the annual renewal premium on the key man life insurance policy with ATI as the owner and beneficiary.  Also, the Company agrees to lower the exercise price of the Warrants to $.40 per share and extend the expiration date to March 31, 2020.

3.            ATI Ownership of Common Shares.    Notwithstanding anything to the contrary set forth in the applicable Settlement Agreement and/or the Warrant Agreement, ATI and Company agree that unless ATI delivers to the Company at least sixty-five (65) days advance written notice of its desire and intent to beneficially own 10% or more of the Company's Common Stock, the Company will not issue and deliver any portion of the Common Shares to ATI if and to the extent that such issuance would result in ATI becoming the beneficial owner (as determined in accordance with Section 13 (d) of the Exchange Act) of more than 9.99% of the issued and outstanding Common Stock of the Company.

	
4.

	
Release.

4.1.              In consideration of the promises and covenants contained herein, and upon receipt of the consideration provided by Section 2 hereof, ATI hereby releases and forever discharges the Company and its officers, director, representatives, agents, attorneys, successors and assigns (all of whom are collectively referred to herein as the "Company Releasees") of and from any and all claims, actions, causes of action, rights, demands, debts, obligations, or damages, of whatever nature or kind, known or unknown, at law or in equity, which they, or one or more of them, have or purport to have against the said Company Releasees, or one or more of them, arising or occurring prior to the effective date of this Agreement.  The claims released herein include, without limitation, any claims in any way arising out of, based upon, or relating to any acts, omissions, transactions or events could have or reasonably should have been raised or asserted in any action, and any other tort, contract or statutory claim.

4.2.              Notwithstanding the release of claims contained in paragraph 3.1 above, the parties agree that ATI is not releasing any claims that may arise in the future based upon any breach by the Company of any obligation owed under this Agreement.

	
5.

	
Other Provisions.

5.1.            Notices.  Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally, telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid.  Any such notice shall be deemed given when so delivered personally, telegraphed, telexed, or sent by facsimile transmission or, if mailed, five (5) days after the date of deposit in the United States Mail, as follows:

	
(i)

	
If to the Company, to:

ActiveCare, Inc.

1365 West Business Park Dr.

Orem, Utah 84058

With a copy (which shall not constitute notice hereunder) to:

Durham Jones & Pinegar, P.C.

Attention:  Kevin R. Pinegar, Esq.

111 East Broadway, Suite 900

Salt Lake City, Utah 84111

	
(ii)

	
If to ATI:

Advance Technology Investors, LLC

C/O Steven Weidman

154 Rock Hill Road

Spring Valley, New York 10977

Any party may change its address for notice hereunder by notice to the other parties hereto.

5.2.            Entire Agreement.  This agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto.

5.3.            Governing Law:  Venue.  The Agreement shall be governed and construed in accordance with the laws of the State of Utah applicable to agreements made and to be performed entirely within such state.  The parties submit themselves to the jurisdiction of the Federal and State courts located in Utah and agree to commence any lawsuit arising under or relating to this Agreement in such courts.

5.4.            Assignment.  This Agreement and any rights and obligations hereunder, may not be assigned by any party hereto without the prior written consent of the other party.

5.5.            Headings.  The headings of this Agreement are for reference only and shall not in any way affect the meaning or interpretation of this Agreement.

5.6.            Indemnification.  The Company hereby indemnifies and holds ATI harmless from and against any and all losses, claims, damages, and law suits (including costs of investigation and reasonable legal fees, and expenses at trial or on appeal) which arise out of or result from ATI's association with the Company through this Agreement as long as the event, act, omission is not directly attributable to a misdeed or misrepresentation of ATI.

[Signatures on following page.]

  

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Date first above-written.

ActiveCare, Inc.                                                                                                  Advance Technology Investors, LLC

By: ________________________________                                                                                                                By: _________________________________

Its: ________________________________                                                                                                                Its: _________________________________Exhibit 10.9

SUBLEASE AGREEMENT

This sublease made the 10th day of June, 2015, between ActiveCare, Inc hereinafter referred to as sublessee and Humaneyezed LLC, Domega Inc. and LandVoice Data, LLC hereinafter referred to as sublessor.

WITNESSETH; that the sublessor hereby subleases to the sublessee, and the sublessee hereby hires and takes from the sublessor, the following premises; approximately 6,900 rentable square feet of office space in the building 1365 West Business Park Drive, Orem, UT 84058 (See Exhibit A)

The premises are to be used and occupied by the sublessee as Office space on thirty seven (37) month and 21 day term. The sublease shall commence on the 10th day of June, 2015 and to end on the 31st day of July 2018, unless sooner provided, with rent payable in advance on the first day of each and every calendar month during said term, beginning 10th day of June, 2015.

The said premises are the same premises referred to in a lease between Countryview Properties, LLC, as the lessor and ActiveCare Inc. as the lessee, dated the 9th day of February 2013, assigned by Countryview  Properties,  LLC("Assignor")  to  Fackrell  Holdings,  LLC ("New Landlord"),  dated  the    day of the 10th day of June, 2015.  As per the lease Assumption agreement with ActiveCare Inc. (Assignor) and Humaneyezed LLC, Domega Inc. and LandVoice Data, LLC (Assignee), ActiveCare Inc. is released from obligations under the lease transferred to Fackrell Holdings as indicated herein.

The terms, covenants, provisions and conditions of said Sublease are hereby incorporated herein shall be binding upon both parties hereto, those applying to the Landlord therein shall apply to the lessor herein but only to the extent Landlord performs such terms and conditions, and those applying to the Tenant therein shall apply to the lessee herein and with the following exceptions:

	
a.

	
Sublessee shall pay rent according to the following rental schedule on 6,900 Square Feet, which payment shall be made directly to Humaneyezed LLC, Domega Inc. and LandVoice Data.

                          

	Size 	 	 	 	 	PSF Price 	 	 	
Monthly 

Base 

Rent 

	 
	 	
6,900

	 	
   7/1/2015

	
   2/28/2016

	 	
$

	
17.98

	 	 	
$

	
10,339.80

	 
	 	
6,900

	 	
3/1/2016

	
2/28/2017

	 	
$

	
18.52

	 	 	
$

	
10,649.99

	 
	 	
6,900

	 	
3/1/2017

	
2/28/2018

	 	
$

	
19.08

	 	 	
$

	
10,969.49

	 
	 	
6,900

	 	
3/1/2018

	
7/31/2018

	 	
$

	
19.65

	 	 	
$

	
11,298.57

	 

The monthly rent payable hereunder shall be Ten thousand three hundred thirty nine dollars and eighty cents ($10,339.80) per month Full Service. Sublessor shall be responsible for gas, and electric. Sublessor will cover property taxes, building insurance and common area maintenance fees. Sublessee will be responsible to pay for their personal phone, internet, and in suite janitorial. There shall be 3% increases per annum according to the following schedule:

	
b.

	
SERVICE OF NOTICES: Any and all notices and demands shall be in writing and shall be validly given or made if served if either personally or if deposited in the United States mail, certified or registered, postage prepaid, return receipt requested. If such notice or demand is served personally, service shall be conclusively deemed made upon date indicated upon the return receipt.

	
c.

	
Any notice of demand to lessor shall be addressed to Humaneyezed LLC, Domega Inc. and

LandVoice Data,  LLC.  Any party hereto may change its address for the purpose of receiving notices, payments or demands as herein provided by a written notice given in the manner aforesaid to the other party hereto.

	
d.

	
All payments for rent will be made to Humaneyezed LLC, Domega Inc. and LandVoice Data, LLC, bylessee to Humaneyezed LLC, Domega Inc. and LandVoice Data, LLC, by lessee to 1365 West Business Park Drive Orem, UT 84058.

	
e.

	
Security Deposit. Concurrently with sublessee's execution of this Sublease, sublessee shall depositwith sublessor the sum of ten thousand nine hundred sixty nine dollars and ninety nine cents ($10,969.99) (hereinafter the "Security Deposit"). The Security Deposit shall be held by sublessor for the faithful performance by sublessee of all of the terms, covenants, and conditions of this sublease to be kept and performed by sublessee during the term of this sublease. If sublessee defaults with respect to any provision of this sublease, including but not limited to the provisions relating to the payment of Monthly Base Rent, and any costs, expenses, and charges payable under the provisions of this sublease, sublessor may, but shall not be obligated to use, apply or retain all or a part of the Security Deposit for the payment of any amount which sublessor may spend by reason of sublessee's default or to compensate sublessor for any other loss or damage which sublessor may suffer by reason of sublessee's default. If any portion of the Security Deposit is so used or applied, sublessee shall, within ten (10) days after written demand, deposit with sublessor an amount sufficient to restore the Security Deposit to its original amount; and sublessee's failure to do so shall be a material breach of this sublease. Sublessor shall not be required to keep the Security Deposit separate from sublessor's general funds, and sublessee shall not be entitled to interest on the Security Deposit. If sublessee shall fully and faithfully perform every provision of this sublease to be performed by sublessee, the Security Deposit or any balance thereof shall be returned to sublessee or, at sublessor's option, to the last permitted assignee of sublessee's interest under this sublease within thirty (30) days of the expiration of the term of this sublease and after sublessee or sublessee's permitted assignee has vacated the Premises or within fifteen (15) days of receipt of sublessee's new mailing address, whichever is later. In the event of termination of sublessor's interest in this sublease, sublessor shall transfer the Security Deposit to sublessor's successor in interest whereupon sublessee agrees to release sublessor from liability for the return of the Security Deposit or any accounting therefore.

	
f.

	
Sublessee shall have the use of 4.5 parking stalls per 1,000 Square Feet of the subleased premises.

	
g.

	
Sublessee shall have the first right of refusal on the 3,100 SF space on the main floor. Sublessee shall have 5 business days after receiving written notification of an accepted offer to determine if they would like to match the offer.

	
h.

	
This sublease shall be contingent upon the Buyer, Fackrell Holdings, LLC Closing on the property.

IN WITNESS WHEREOF, the parties hereto have executed this sublease in duplicate the day and year first above written.

SUBLESSOR: Humaneyezed LLC, Domega Inc. and LandVoice Data, LLC

By:                                                                                                   

Its:                                                                                                   

SUBLESSEE: ActiveCare, Inc.

By:                                                                                                   

Its:                                                                                                   

LESSOR: Fackrell Holdings, LLC

By:                                                                                                   

Its:                                                                                                   

EXHIBIT A

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