Document:

Exhibit 10.8

PACIFIC VENTURES GROUP, INC.

REGISTRATION RIGHTS AGREEMENT

REGISTRATION RIGHTS AGREEMENT (the "Agreement"), dated as of September 25, 2015, by and among Pacific Ventures Group, Inc., a Delaware corporation (the "Company"), and the shareholders of Snöbar Holdings, Inc., a Delaware corporation, set forth on Exhibit A (the "Snöbar Shareholders") and the other persons ("Other Persons") set forth on Exhibit B.

RECITALS

WHEREAS, pursuant to that certain Share Exchange Agreement dated August 14, 2015 ("Share Exchange Agreement"), among the Company, Snöbar Holdings, Inc., a Delaware corporation ("Snöbar Holdings"), and the Snöbar Shareholders, the Company is to issue 22,474,000 shares of the Company's unregistered common stock, par value $0.001 per share ("Common Stock") to Snöbar Shareholders while simultaneously issuing 2,500,000 shares of the Company's unregistered Common Stock ("Other Issuance") to Other Persons on the initial closing of the Share Exchange Agreement; and

WHEREAS, as a condition to consummating the transactions under the Exchange Agreement, the parties are entering into this Registration Rights Agreement providing piggy back registration rights to the Snöbar Shareholders and Other Persons.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the parties hereto agree as follows:

1.          (a) Piggyback Registration. The Company shall give Snöbar Shareholders and Other Persons at least 10 days' prior written notice of each filing by the Company of a registration statement (other than a registration statement on Form S-4 or Form S-8 or on any successor forms thereto) with the Securities and Exchange Commission (the "Commission") pursuant to which the Company is registering shares of its Common Stock for sale by itself or others for cash proceeds. If requested by Snöbar Shareholders and/or Other Persons in writing within 20 days after receipt of any such notice, the Company shall, at the Company's sole expense (other than the underwriting discounts, if any, payable in respect of the Shares sold by Snöbar Shareholders and/or Other Persons), register all or, at Snöbar Shareholders and/or Other Persons' option, any portion of the shares of common stock then held by Snöbar Shareholders and/or Other Persons, including all shares of common stock issuable to Snöbar Shareholders and/or Other Persons upon the exercise, conversion or exchange of other securities now held by Snöbar Shareholders and/or Other Persons (the "Shares"), concurrently with the registration of such other securities, all to the extent requisite to permit the public offering and sale of the Shares through the securities exchange, if any, on which the Common Stock is being sold or on the over-the-counter market, and will use its commercially reasonable efforts through its officers, directors, auditors, and counsel to cause such registration statement to become effective as promptly as practicable. If the managing underwriter of any such offering shall determine and advise the

Company that, in its opinion, the distribution of all or a portion of the Shares requested to be included in the registration concurrently with the securities being registered by the Company would adversely affect the distribution of such securities by the Company, then the Company will include in such registration first, the securities that the Company proposes to sell itself and second, the Shares requested to be included in such registration, to the extent permitted by the managing underwriter.

(b) In the event of a registration pursuant to the provisions of this Agreement, the Company shall use its reasonable commercial efforts to cause the Shares so registered to be registered or qualified for sale under the securities or blue sky laws of such jurisdictions as Snöbar Shareholders and/or Other Persons may reasonably request; provided, however, that the Company shall not be required to qualify to do business in any state by reason of this Section 1(b) in which it is not otherwise required to qualify to do business.

(c) The Company shall keep effective any registration or qualification contemplated by this Section 1 and shall from time to time amend or supplement each applicable registration statement, preliminary prospectus, final prospectus, application, document and communication until such time as all of the Shares may be sold without volume restrictions pursuant to Rule 144, in each case as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company's transfer agent.

(d) In the event of a registration pursuant to the provisions of this Agreement, the Company shall furnish to Snöbar Shareholders and/or Other Persons such reasonable number of copies of the registration statement and of each amendment and supplement thereto (in each case, including all exhibits), of each prospectus contained in such registration statement and each supplement or amendment thereto (including each preliminary prospectus), all of which shall conform to the requirements of the Securities Act and the rules and regulations thereunder, and such other documents, as Snöbar Shareholders and/or Other Persons may reasonably request to facilitate the disposition of the Shares included in such registration.

(e) The Company shall notify Snöbar Shareholders and/or Other Persons promptly when such registration statement has become effective or a supplement to any prospectus forming a part of such registration statement has been filed.

(f) The Company shall advise Snöbar Shareholders and/or Other Persons promptly after it shall receive notice or obtain knowledge of the issuance of any stop order by the Commission suspending the effectiveness of such registration statement, or the initiation or threatening of any proceeding for that purpose and promptly use its reasonable best efforts to prevent the issuance of any stop order or to obtain its withdrawal if such stop order should be issued.

(g) The Company shall promptly notify Snöbar Shareholders and/or Other Persons at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, would include an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, and at the reasonable request of Snöbar Shareholders and/or Other

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Persons prepare and furnish to it such number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Shares or securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made. The Snöbar Shareholders and/or Other Persons shall suspend all sales of the Shares upon receipt of such notice from the Company and shall not re-commence sales until it receives copies of any necessary amendment or supplement to such prospectus, which shall be delivered to Snöbar Shareholders and/or Other Persons within 30 days of the date of such notice from the Company.

(h) If requested by the underwriter for any underwritten offering of Shares, the Company and Snöbar Shareholders and/or Other Persons will enter into an underwriting agreement with such underwriter for such offering, which shall be reasonably satisfactory in substance and form to the Company, the Company's counsel and Snöbar Shareholders and/or Other Persons 's counsel, and the underwriter, and such agreement shall contain such representations and warranties by the Company and Snöbar Shareholders and/or Other Persons and such other terms and provisions as are customarily contained in an underwriting agreement with respect to secondary distributions solely by selling stockholders, including, without limitation, indemnities substantially to the effect and to the extent provided in Section 2 of this Agreement.

(i) The Company agrees that until all the Shares have been sold under a registration statement or pursuant to Rule 144 promulgated under the Securities Act or other available exemption from Securities Act registration requirements, it shall use its reasonable commercial efforts to keep current in filing all reports, statements and other materials required to be filed with the Commission to permit Snöbar Shareholders and/or Other Persons to sell the Shares under Rule 144.

(j) Snöbar Shareholders and/or Other Persons hereby agrees not to offer, sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any of the Company's Common Stock held of record or beneficially owned by Snöbar Shareholders and/or Other Persons (other than those included in the registration) which at the time of the effective date of such registration statement may be sold or otherwise transferred in reliance upon Rule 144 during the period of time (not to exceed 180 days) determined by the Board of Directors of the Company upon advice of its managing underwriter, from and after the effective date of the registration statement; provided that the obligations of Snöbar Shareholders and/or Other Persons under this Section 1(j) shall not apply unless each officer and director of the Company then outstanding, in each case, who are not signatories to this Agreement, are bound by similar restrictions. Such restriction shall not apply to shares registered in such offering. In order to enforce this provision, the Company may impose stop-transfer instructions with respect to such Shares until the end of such period.

(k) However, nothing herein shall be construed to prohibit Snöbar Shareholders and/or Other Persons from reselling all or part of the Shares in a private transaction or transactions exempt from Securities Act registration under Section 4(1) thereof or otherwise; provided, however, that any such transferee(s) shall have the same registration rights and have the same

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obligations hereunder as Snöbar Shareholders and/or Other Persons, and that Snöbar Shareholders and/or Other Persons and all such transferees together shall share any resale limit imposed by an underwriter.

2. Indemnification.

(a) Subject to the conditions set forth below, the Company agrees to indemnify and hold harmless Snöbar Shareholders and/or Other Persons, his employees, agents, and counsel, and each person, if any, who controls any such person within the meaning of Section 15 of the Securities Act or Section 20(a) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act") from and against any and all loss, liability, charge, claim, damage, and expense whatsoever (which shall include, for all purposes of this Section 2, but not be limited to, attorneys' fees and any and all reasonable expenses whatsoever incurred in investigating, preparing, or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation) as and when incurred, arising out of, based upon, or in connection with (i) any untrue statement or alleged untrue statement of a material fact contained (A) in any registration statement, preliminary prospectus, or final prospectus (as from time to time amended and supplemented) or any amendment or supplement thereto, relating to the sale of any of the Shares or (B) in any application or other document or communication (in this Section 2 collectively called an "application") executed by or on behalf of the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction in order to register or qualify any of the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities exchange; or any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements made therein not misleading, unless (x) such statement or omission was made in reliance upon and in conformity with written information furnished to the Company with respect to Snöbar Shareholders and/or Other Persons by or on behalf of Snöbar Shareholders and/or Other Persons expressly for inclusion in any registration statement, preliminary prospectus, or final prospectus, or any amendment or supplement thereto, or in any application, as the case may be, or (y) such loss, liability, charge, claim, damage or expense arises out of Snöbar Shareholders and/or Other Persons 's failure to comply with the terms and provisions of this Agreement, or (ii) any breach of any representation, warranty, covenant, or agreement of the Company contained in this Agreement. The foregoing agreement to indemnify shall be in addition to any liability the Company may otherwise have, including liabilities arising under this Agreement.

If any action is brought against Snöbar Shareholders and/or Other Persons or any of his employees, agents, or counsel, or any controlling persons of such person (an "indemnified party") in respect of which indemnity may be sought against the Company pursuant to the foregoing paragraph, such indemnified party or parties shall promptly notify the Company in writing of the institution of such action (but the failure so to notify shall not relieve the Company from any liability other than pursuant to this Section 2(a)) and the Company shall promptly assume the defense of such action, including the employment of counsel provided that the indemnified party shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless the employment of such counsel shall have been authorized in writing

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by the Company in connection with the defense of such action or the Company shall not have promptly employed counsel reasonably satisfactory to such indemnified party or parties to have charge of the defense of such action or such indemnified party or parties shall have reasonably concluded that there may be one or more legal defenses available to it or them or to other indemnified parties which are different from or additional to those available to the Company, in any of which events such fees and expenses shall be borne by the Company and the Company shall not have the right to direct the defense of such action on behalf of the indemnified party or parties. Anything in this Section 2 to the contrary notwithstanding, the Company shall not be liable for any settlement of any such claim or action effected without its written consent, which shall not be unreasonably withheld. The Company shall not, without the prior written consent of each indemnified party that is not released as described in this sentence, settle or compromise any action, or permit a default or consent to the entry of judgment in or otherwise seek to terminate any pending or threatened action, in respect of which indemnity may be sought hereunder (whether or not any indemnified party is a party thereto) unless such settlement, compromise, consent, or termination includes an unconditional release of each indemnified party from all liability in respect of such action. The Company agrees promptly to notify Snöbar Shareholders and/or Other Persons of the commencement of any litigation or proceedings against the Company or any of its officers or directors in connection with the sale of any Shares or any preliminary prospectus, prospectus, registration statement, or amendment or supplement thereto, or any application relating to any sale of any Shares.

(b) The Snöbar Shareholders and/or Other Persons agrees to indemnify and hold harmless the Company, each director of the Company, each officer of the Company who shall have signed any registration statement covering Shares held by Snöbar Shareholders and/or Other Persons, each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act, and its or their respective counsel, to the same extent as the foregoing indemnity from the Company to Snöbar Shareholders and/or Other Persons in Section 2(a) but only with respect to statements or omissions, if any, made in any registration statement, preliminary prospectus, or final prospectus (as from time to time amended and supplemented) or any amendment or supplement thereto, or in any application, in reliance upon and in conformity with written information furnished to the Company with respect to Snöbar Shareholders and/or Other Persons by or on behalf of Snöbar Shareholders and/or Other Persons, expressly for inclusion in any such registration statement, preliminary prospectus, or final prospectus, or any amendment or supplement thereto, or in any application, as the case may be. If any action shall be brought against the Company or any other person so indemnified based on any such registration statement, preliminary prospectus, or final prospectus, or any amendment or supplement thereto, or in any application, and in respect of which indemnity may be sought against Snöbar Shareholders and/or Other Persons pursuant to this Section 2(b), Snöbar Shareholders and/or Other Persons shall have the rights and duties given to the Company, and the Company and each other person so indemnified shall have the rights and duties given to the indemnified parties, by the provisions of Section 2(a).

(c) To provide for just and equitable contribution, if (i) an indemnified party makes a claim for indemnification pursuant to Section 2(a) or 2(b) (subject to the limitations thereof) but it is found in a final judicial determination, not subject to further appeal, that such indemnification may not be enforced

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in such case, even though this Agreement expressly provides for indemnification in such case, or (ii) any indemnified or indemnifying party seeks contribution under the Securities Act, the Exchange Act or otherwise, then the Company (including for this purpose any contribution made by or on behalf of any director of the Company, any officer of the Company who signed any such registration statement, any controlling person of the Company, and its or their respective counsel) as one entity, and Snöbar Shareholders and/or Other Persons (including for this purpose any contribution by or on behalf of an indemnified party) as a second entity, shall contribute to the losses, liabilities, claims, damages, and expenses whatsoever to which any of them may be subject, on the basis of relevant equitable considerations such as the relative fault of the Company and Snöbar Shareholders and/or Other Persons in connection with the facts which resulted in such losses, liabilities, claims, damages, and expenses. The relative fault, in the case of an untrue statement, alleged untrue statement, omission, or alleged omission shall be determined by, among other things, whether such statement, alleged statement, omission or alleged omission relates to information supplied by the Company or by Snöbar Shareholders and/or Other Persons, and the parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such statement, alleged statement, omission, or alleged omission. The Company and Snöbar Shareholders and/or Other Persons agree that it would be unjust and inequitable if the respective obligations of the Company and Snöbar Shareholders and/or Other Persons for contribution were determined by pro rata or per capita allocation of the aggregate losses, liabilities, claims, damages, and expenses (even if Snöbar Shareholders and/or Other Persons and the other indemnified parties were treated as one entity for such purpose) or by any other method of allocation that does not reflect the equitable considerations referred to in this Section 2(c). No person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who is not guilty of such fraudulent misrepresentation. For purposes of this Section 2(c) each person, if any, who controls Snöbar Shareholders and/or Other Persons within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act and each employee, agent, and counsel of Snöbar Shareholders and/or Other Persons or control person shall have the same rights to contribution as Snöbar Shareholders and/or Other Persons and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act, each officer of the Company who shall have signed any such registration statement, each director of the Company, and its or their respective counsel shall have the same rights to contribution as the Company, subject to each case to the provisions of this Section 2(c). Anything in this Section 2(c) to the contrary notwithstanding, no party shall be liable for contribution with respect to the settlement of any claim or action effected without its written consent. This Section 2(c) is intended to supersede any right to contribution under the Securities Act, the Exchange Act or otherwise.

3. Miscellaneous.

(a) Remedies. In the event of a breach by the Company of its obligations under this Agreement, Snöbar Shareholders and/or Other Persons, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Agreement.

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(b) Agreements and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, unless such amendment, modification or supplement is in writing and signed by the Company and Snöbar Shareholders and/or Other Persons.

(c) Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, registered first-class mail, telex, or telecopies, initially to the address set forth in the preamble to this Agreement, and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 3(c). All such notices and communications shall be deemed to have been duly given when delivered by hand, if personally delivered; two business days after being deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; and when receipt is acknowledged, if telecopied.

(d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties.

(e) Counterparts; Facsimile Execution. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. The execution and delivery of a facsimile or other electronic transmission of this agreement shall constitute delivery of an executed original and shall be binding upon the person whose signature appears on the transmitted copy.

(f) Headings. The headings in this Agreement are for convenience of references only and shall not limit or otherwise affect the meaning hereof.

(g) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California without reference to its conflicts of law provisions. Each of the parties submits to the jurisdiction of any state or federal court sitting in California, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court. Each of the parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other party with respect thereto. Nothing in this Section, however, shall affect the right of any party to bring any action or proceeding arising out of or relating to this Agreement in any other court or to serve legal process in any other manner permitted by law or at equity. Each party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or at equity.

(h) Severability. In the event that any one or more of the provisions contained herein, or the application hereof in any circumstance is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provisions in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

(i) Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of this agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein, concerning the registration rights granted by the Company pursuant to this Agreement.

[signature page follows]

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IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be executed as of the date first written above.

	 	 	 
	 	
PACIFIC VENTURES GROUP, INC.

	 	
 

	
 

	 	
By:

	
/s/Shannon Masjedi

	 	
 

	
Name: Shannon Masjedi

	 	
 

	
Title: President

 

 

  

8Exhibit 10.14

 

AMENDED AND RESTATED

CONSULTING AGREEMENT

By and Between:

ACTIVECARE, INC.

a Delaware corporation

(the "Company")

and

ADP MANAGEMENT CORPORATION

a Utah corporation

(the "Consultant")

______________, 2016

TABLE OF CONTENTS

Page

	
1

	
Engagement

	
1

	 	
(a)

	
Services

	
1

	 	
(b)

	
Performance of the Services.

	
1

	 	
(c)

	
No Conflict of Interest

	
2

	
2

	
Independent Contractor Relationship

	
2

	
3

	
Compensation

	
3

	 	
(a)

	
Consulting Fee

	
3

	 	
(b)

	
Expenses

	
3

	
4

	
Term and Termination\

	
3

	 	
(a)

	
Term.

	
3

	 	
(b)

	
Termination

	
3

	 	
(c)

	
Effect of Termination

	
4

	
5

	
Confidentiality.

	
4

	 	
(a)

	
Confidential Information

	
4

	 	
(b)

	
Restrictions on Use

	
5

	 	
(c)

	
Exclusions

	
5

	 	
(d)

	
Equitable Relief

	
5

	 	
(e)

	
Return of Materials

	
5

	 	
(f)

	
Disclaimer

	
6

	
6

	
Warranties

	
6

	
7

	
Deliverables

	
6

	
8

	
Indemnification

	
6

	
9

	
Miscellaneous

	
7

	 	
(a)

	
Entire Agreement

	
7

	 	
(b)

	
Severability

	
7

	 	
(c)

	
Governing Law

	
7

	 	
(d)

	
Jurisdiction and Venue

	
7

	 	
(e)

	
WAIVER OF JURY TRIAL

	
7

	 	
(f)

	
Fees and Costs

	
8

	 	
(g)

	
Waiver

	
8

	 	
(h)

	
Modification

	
8

	 	
(i)

	
Assignment

	
8

	 	
(j)

	
Remedies

	
8

	 	
(k)

	
Notices

	
8

	 	
(l)

	
Construction

	
9

	 	
(m)

	
Exhibits

	
9

	 	
(n)

	
Counterparts

	
9

	 	
(o)

	
Relationship of Parties

	
9

		
(p)

	
Parties in Interest

	
9

 

* * * * *

AMENDED AND RESTATED CONSULTING AGREEMENT

THIS AMENDED AND RESTATED CONSULTING AGREEMENT ("Agreement") is entered into this 29th day of February, 2016 and effective as of the 1st day of January, 2016 (the "Effective Date"), by and between ActiveCare, Inc., a Delaware corporation (the "Company"), and ADP Management Corporation, a Utah corporation (the "Consultant").

RECITALS

A.            The parties entered into an agreement captioned "Consulting Agreement" dated September 23, 2016 (the "Initial Agreement").

B.            The parties hereto hereby amend and restated Initial Agreement in its entirety as follows:

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants, agreements and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby amend and restate the Initial Agreement as follows:

1.            Engagement.

(a)            Services.  The Company hereby engages the Consultant to perform the services described in Exhibit A attached hereto as such exhibit may be amended or supplemented pursuant to the terms of the Agreement from time to time (the "Services"), and the Consultant hereby accepts such engagement and agrees to provide the Services.  The Consultant and the Company will mutually agree upon the method, details and means of performing the Services.  For purposes of this Agreement, Consultant has designated Mr. David G. Derrick, as Consultant's representative to undertake the day-to-day administration and management hereunder on behalf of Consultant.

(b)            Performance of the Services.

(i)            For each month during the Term (as defined below), the Consultant commits to dedicate its best efforts to render the Services, provided, that the Consultant shall work as many hours as may be reasonably necessary to timely render the Services pursuant to this Agreement.

(ii)            The Consultant shall render to the Company and certain of its affiliates the Services in a timely and professional manner consistent with industry standards, in accordance with this Agreement.

(iii)            If any services, functions or responsibilities not specifically described in this Agreement are required for the proper performance and provision of the Services, they shall be deemed to be included within the scope of Services to the same extent as if specifically described in this Agreement.

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(iv)            The Consultant may not subcontract or otherwise delegate its obligations under this Agreement without the Company's prior written consent.  In performing the Services, the Consultant agrees to provide his own personnel, equipment, tools and other materials at his own expense.  In connection with providing the Services, the parties hereby agree that, unless otherwise consented to in writing by the Company, the only person that will render the Services shall be the Consultant.

(v)            The Company shall make its facilities and equipment available to the Consultant as reasonably necessary in connection with the Services.  For any work performed on the Company's or any of its affiliates' premises, the Consultant shall comply with all security, confidentiality, safety and health policies of the Company and such affiliates.

(vi)            Subject to compliance with the Consultant's obligations hereunder, the Consultant shall retain the sole control and discretion to determine the methods by which the Consultant performs the Services and the places at which, the equipment and supplies with which, and the hours during which such Services are to be rendered.

(c)            No Conflict of Interest.  The Consultant agrees during the Term not to, directly or indirectly, on the Consultant's own behalf or in the service or on behalf of others, accept work or enter into any agreement or accept any obligation that is inconsistent or incompatible with the Consultant's obligations under this Agreement or the scope of Services rendered to the Company and its affiliates.  The Consultant represents and warrants that, to the best of his knowledge, there is no other existing agreement or duty on the Consultant's part inconsistent with this Agreement.

2.            Independent Contractor Relationship.  The Consultant's relationship with the Company and its affiliates shall be that of an independent contractor and nothing in this Agreement should be construed to create a partnership, joint venture, agency or employer-employee relationship between the parties.  The Consultant is not the agent of the Company or any of its affiliates and is not authorized and shall not have any authority to make any representation, contract or commitment on behalf of the Company or its affiliates, or otherwise bind the Company or its affiliates in any respect whatsoever.  Except as otherwise specifically provided herein, it is not the intention of this Agreement or of the parties hereto to confer a third party beneficiary right of action upon any third party or entity whatsoever, and nothing in this Agreement shall be construed to confer upon any third party other than the parties hereto a right of action under this Agreement or in any manner whatsoever.  The Consultant (and his employees and agents) shall not be entitled to any of the benefits the Company may make available to its employees, such as group insurance, profit-sharing or retirement benefits.  The Consultant shall be solely responsible for all tax returns and payments required to be filed with or made to any federal, state or local tax authority with respect to the Consultant's performance of the Services and receipt of fees under this Agreement.  The Company may regularly report amounts paid to the Consultant with the Internal Revenue Service as required by law.  Because Consultant is an independent contractor, the Company shall not withhold or make payments for social security, make unemployment insurance or disability insurance contributions, or obtain worker's compensation insurance on the Consultant's (or his employees' or agents') behalf.  The Consultant shall comply with, and agrees to accept exclusive liability for non-compliance with, all applicable state and federal laws, rules and regulations, including, without limitation, obligations such as payment of all taxes, social security, disability and other contributions based on fees paid to the Consultant, his agents or employees under this Agreement.  The Consultant hereby agrees to indemnify, hold harmless and defend the Company against any and all such liability, taxes or contributions, including, without limitation, penalties and interest.

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3.            Compensation.

(a)            Consulting Fees.  In consideration of the Services to be performed by Consultant, Consultant shall be entitled to payment of two hundred fifty dollars ($250) per hour for Services provided by Consultant hereunder. Notwithstanding the foregoing, the Services exclude, and Consultant shall not be entitled to any fee, payment or other consideration in connection with, (i) negotiating the purchase and/or sale of Company securities, (ii) making recommendations regarding transactions involving Company securities, or (iii) other matters involving transactions in Company securities. Consultant shall bill the Company monthly and amounts owed shall be paid within fifteen (15) days of receipt of the invoice in question.

(b)            Expenses.  The Company shall reimburse the Consultant for all reasonable travel, lodging, communications, and out-of-pocket expenses incurred by the Consultant in connection with providing the Services; provided any such expenses shall be approved in advance in writing by the Company and shall be reasonably documented.  The Consultant shall submit to the Company, on a monthly basis, an invoice for all expenses incurred during the prior month.  All amounts payable by the Company hereunder shall be due and payable fifteen (15) days from receipt by the Company of such invoice.  If the Company disputes an invoice, it may withhold the disputed portion but shall pay the undisputed portion.

4.            Term and Termination.

(a)            This Agreement shall commence on the Effective Date and continue in effect for an initial period of one (1) year (the "Initial Term").  Thereafter, this Agreement shall automatically renew for additional consecutive one (1) month periods (each, a "Renewal Term"), unless terminated by either party upon at least thirty (30) days written notice to the other party prior to the end of the Initial Term or any Renewal Term.  Notwithstanding the foregoing to the contrary, however, this Agreement shall not terminate until all outstanding debt obligations of the Company payable to Consultant or its affiliates have been paid in full.  For purposes hereof, "Term" means the period commencing on the Effective Date and ending on the termination or expiration of this Agreement.

(b)            Termination.  Notwithstanding Section 4, this Agreement may be terminated in accordance with any of the following:

(i)            Upon the mutual written agreement of the parties, effective on the date so mutually agreed;

(ii)            By either party, effective immediately upon written notice to the other party, if the other party materially breaches any term or provision of this Agreement and fails to cure such breach within ten (10) days after receipt of written notice of the breach;

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(iii)            By either party, effective immediately upon written notice thereof, if it becomes illegal or impossible for any party to perform its obligations under the terms of this Agreement for any reason whatsoever; or

(iv)            Automatically upon the first to occur of any of the following events: (A) the bankruptcy or insolvency of either party; (B) the sale of all or substantially all of the assets of the Company; and (C) the complete liquidation of the Company.

(c)            Effect of Termination.  The termination or expiration of this Agreement shall in no way affect or impair any right which has accrued to either party hereto prior to the date when such termination or expiration became effective. Upon the effective date of any termination or expiration of this Agreement, the Consultant shall immediately cease performing the Services.  The Company shall pay the Consultant for all Services performed up through the date of termination or expiration.  The provisions of Sections 2, 3(b), 5, 6, 7, 8 and 9, and this Section 4(c) shall survive any expiration or other termination of this Agreement.  Termination of this Agreement by either party shall not act as a waiver of any breach of this Agreement and shall not act as a release of either party from any liability for breach of such party's obligations under this Agreement.  Neither party shall be liable to the other for damages of any kind solely as a result of terminating or expiration of this Agreement in accordance with its terms, and termination of this Agreement by a party shall be without prejudice to any other right or remedy of such party under this Agreement or applicable law.

5.            Confidentiality.

(a)            Confidential Information.  By virtue of this Agreement, the Consultant will have access to confidential, proprietary and trade secret information and materials of the Company (or its affiliates, suppliers, vendors, customers or any other third party to whom the Company owes a duty of confidentiality), in whatever form, tangible or intangible, whether disclosed orally, in writing or otherwise, that is provided to the Consultant before or after the execution of this Agreement under circumstances reasonably indicating that it is confidential or proprietary (collectively, the "Confidential Information").  Confidential Information includes, without limitation, any trade secrets and know-how, and any:

(i)            information, ideas or materials of a technical or creative nature, such as inventions, improvements, discoveries, developments, techniques, processes, research and development plans and results, reports, drawings, designs, specifications, works of authorship, data, formulas, files, HTML, computer source and object code, patent applications, and other materials and concepts relating to the Company's business, services, processes or technology;

(ii)            information, ideas or materials of a business nature, such as development plans, marketing and sales plans and forecasts, budgets and unpublished financial statements, and other information regarding finances, profits, costs, marketing, purchasing, sales, operations, policies, procedures, personnel, salaries, customers, suppliers and contract terms;

(iii)            all personal property, including, without limitation, books, manuals, records, files, reports, notes, contracts, lists, blueprints and other documents or materials, or copies thereof, received by the Consultant or prepared for the Company in the course of the Consultant's rendering of Services to the Company; and

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(iv)            any other trade secrets, information, ideas or materials of or relating in any way to the past, present, planned or foreseeable business, products, developments, technology or activities of the Company (or its affiliates, employees, licensors, suppliers, vendors, clients, customers or any other third parties to whom the Company owes a duty of confidentiality).

Confidential Information does not include that which (A) is already in the Consultant's possession at the time of disclosure to the Company, (B) is or becomes part of public knowledge other than as a result of any action or inaction of the Consultant, (C) is obtained by the Consultant from an unrelated third party without a duty of confidentiality, or (D) is independently developed by the Consultant other than in connection with this Services.

(b)            Restrictions on Use.  The Consultant shall not use Confidential Information for any purpose other than in furtherance of this Agreement and the activities described herein.  The Consultant shall not disclose Confidential Information to any third parties except as otherwise permitted hereunder.  The Consultant shall maintain Confidential Information with at least the same degree of care it uses to protect its own proprietary information of a similar nature or sensitivity, but no less than reasonable care under the circumstances.  The Consultant shall promptly advise the Company in writing of any misappropriation or misuse of Confidential Information of which the Consultant becomes aware.

(c)            Exclusions.  Notwithstanding the foregoing, this Agreement shall not prevent the Consultant from disclosing Confidential Information to the extent required by a judicial order or other legal obligation, provided that, in such event, the Consultant shall promptly notify the Company to allow intervention (and shall cooperate with the Company) to contest or minimize the scope of the disclosure (including application for a protective order).  Further, the Consultant may disclose the terms and conditions of this Agreement: (i) in confidence, to legal counsel; (ii) in confidence, to accountants; and (iii) in connection with the enforcement of this Agreement or any rights hereunder.

(d)            Equitable Relief.  The Consultant acknowledges that the Company considers the Confidential Information to contain trade secrets and that any unauthorized use or disclosure of such information would cause the Company irreparable harm for which its remedies at law would be inadequate.  Accordingly, the Consultant acknowledges and agrees that the Company will be entitled, in addition to any other remedies available to it at law or in equity, to the issuance of injunctive relief, without bond, enjoining any breach or threatened breach of the Consultant's obligations hereunder with respect to the Confidential Information, and such further relief as any court of competent jurisdiction may deem just and proper.

(e)            Return of Materials.  Upon termination of this Agreement, the Consultant will immediately return to the Company all Confidential Information embodied in tangible (including electronic) form or, at the Consultant's discretion, destroy all such Confidential Information and certify in writing to the Company that all such Confidential Information has been destroyed.

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(f)            Disclaimer.  The Company hereby disclaims all warranties of any kind, whether express, implied, statutory or otherwise, with respect to any Confidential Information or other information or materials supplied by the Company to the Consultant hereunder.

6.            Warranties.  The Consultant represents, warrants and covenants to the Company that: (a) the Consultant has the full power and authority to enter into this Agreement and to perform his obligations hereunder, without the need for any consents, approvals or immunities not yet obtained; (b) the Consultant has the right to grant the rights and assignments granted herein, without the need for any assignments, releases, consents, approvals, immunities or other rights not yet obtained; (c) the Services, including, without limitation, any Deliverables (as defined below) required hereunder, shall be free from material errors or other defects and shall substantially conform to any specifications for such Services and/or deliverables; and (d) any deliverables or other materials delivered to the Company or any of its affiliates in connection with this Agreement (the "Deliverables") (and the exercise of the rights granted herein with respect thereto) do not and shall not infringe, misappropriate or violate any patent, copyright, trademark, trade secret, publicity, privacy or other rights of any third party, and are not and shall not be defamatory or obscene.

7.            Deliverables.  The Company is and shall be, the sole and exclusive owner of all rights, title and interest throughout the world in and to the results and proceeds of the Services performed un this Agreement, including but not limited to any Deliverables.  The Consultant hereby agrees that the Deliverables are hereby deemed a "work made for hire" as defined in 17 U.S.C. §101 for the Company.   If, for any reason, any of the Deliverables do not constitute a "work made for hire", the Consultant hereby irrevocably assigns to the Company, in each case without additional consideration, all of his right, title and interest throughout the world in and to the Deliverables.  Any assignment of copyrights under this Agreement includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as "moral rights" (collectively, "Moral Rights").  The Consultant hereby irrevocably waives, to the extent permitted by applicable law, any and all claims you may now or hereafter have in any jurisdiction to any Moral Rights with respect to the Deliverables.  The Consultant hereby acknowledges and agrees that (a) he has no right or license to use, publish, reproduce, prepare derivative works based upon, distribute, perform, or display any Deliverables, and (b) he has no right or license to use the Company's trademarks, service marks, trade names, trade names, logos, symbols or brand names.

8.            Indemnification.  The Consultant shall indemnify and hold harmless, and at the Company's request defend, the Company and its affiliates, successors and assigns (and its and their officers, managers, employees, customers and agents) from and against any and all claims, losses, liabilities, damages, settlements, expenses and costs (including, without limitation, attorneys' fees and court costs) which arise out of or relate to (a) any breach (or claim or threat thereof that, if true, would be a breach) of this Agreement by the Consultant, including, without limitation, any breach or alleged breach of any representation or warranty of the Consultant set forth in Section 6; or (b) any third party claim or threat thereof that the Services (or the exercise of the rights granted herein with respect thereto) infringe, misappropriate or violate any patent, copyright, trademark, trade secret, publicity, privacy or other rights of any third party, or are defamatory or obscene.

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9.            Miscellaneous.

(a)            Entire Agreement.  This Agreement is the final, complete and exclusive agreement between the parties relating to the subject matter hereof, and supersedes all prior or contemporaneous discussions, proposals, negotiations, understandings, representations, warranties, promises, agreements and other communications, whether oral or written, between the parties relating to such subject matter and all past courses of dealing or industry customs.

(b)            Severability.  If the application of any provision of this Agreement to any particular facts or circumstances shall for any reason be held to be invalid, illegal or unenforceable by a court, arbitration panel or other tribunal of competent jurisdiction, then (i) the validity, legality and enforceability of such provision as applied to any other particular facts or circumstances, and the other provisions of this Agreement, shall not in any way be affected or impaired thereby, and (ii) such provision shall be enforced to the maximum extent possible so as to effect the intent of the parties.  If, moreover, any provision contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with applicable law.

(c)            Governing Law.  This Agreement is to be construed in accordance with and governed by the internal laws of the State of Utah without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Utah to the rights and duties of the parties.

(d)            Jurisdiction and Venue.  Any legal suit, action or proceeding arising out of or relating to this Agreement shall be commenced in a federal or state court located in the County of Utah, Utah, and each party hereto (i) irrevocably submits to the exclusive jurisdiction and venue of any such court in any such suit, action or proceeding, and (ii) irrevocably waives (to the extent permitted by applicable law) any objection which it now or hereafter may have to the laying of venue of any such action or proceeding brought in any of the foregoing courts in and of the State of Utah, and any objection on the ground that any such action or proceeding in any such court has been brought in an inconvenient forum.

(e)            WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY PARTY AGAINST THE OTHER PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  EACH OF THE PARTIES AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

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(f)            Fees and Costs.  The prevailing party or parties in any arbitration, mediation, court action, or other adjudicative proceeding arising out of or relating to this Agreement shall be reimbursed by the party or parties who do not prevail for their reasonable attorneys', accountants', and experts' fees and for the costs of such proceeding.  For purposes of this Section 9(f), "prevailing party" includes, without limitation, a party who agrees to dismiss an action or proceeding upon the other's payment of sums allegedly due or performance of the covenants allegedly breached, or who obtains substantially the relief sought.  The provisions set forth in this Section 9(f) shall survive the merger of these provisions into any judgment.

(g)            Waiver.  The waiver by either party of a breach of or a default under any provision of this Agreement shall not be effective unless in writing and shall not be construed as a waiver of any subsequent breach of or default under the same or any other provision of this Agreement, nor shall any delay or omission on the part of either party to exercise or avail itself of any right or remedy that it has or may have hereunder operate as a waiver of any right or remedy.

(h)            Modification.  No amendment or modification to this Agreement shall be valid or binding upon the parties unless in writing and signed by each party.

(i)            Assignment.  The Consultant acknowledges that the Company has entered into this Agreement on the basis of the particular abilities of the Consultant.  Accordingly, the Company shall be entitled to assign, sell, transfer, delegate or otherwise dispose of, whether voluntarily or involuntarily, by operation of law or otherwise, this Agreement and any of its rights or obligations of this Agreement, but the Consultant shall not and shall not have the right to assign, sell, transfer, delegate or otherwise dispose of, whether voluntarily or involuntarily, by operation of law or otherwise, this Agreement or any of its rights or obligations under this Agreement without the prior written consent of the Company.  Except as provided herein, any purported assignment, sale, transfer, delegation or other disposition by the Consultant, except as permitted herein, shall be null and void.  Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and permitted assigns.

(j)            Remedies.  All rights and remedies hereunder shall be cumulative, may be exercised singularly or concurrently and, unless otherwise stated herein, shall not be deemed exclusive.

(k)            Notices.  All notices, invoices, payments, and other communications made under this Agreement (each, a "Notice") shall be in writing and sent to the appropriate party at the address set forth for such party on the signature page below, or at such other address as such party may designate by ten (1) days advanced Notice to the other party in accordance with this Section 9(k).  Notice shall be given when received on a business day by the addressee.  In the absence of proof of the actual receipt date, the following presumptions will apply: (i) Notices sent by electronic means, including facsimile and electronic mail shall be deemed to have been received upon the sending Party's receipt of its confirmation of successful transmission, such as facsimile machine's confirmation or the "return receipt requested" function for electronic mail, provided, that if the day on which such electronic communication is received is not a business day or is after five (5:00) p.m. local time at the recipient party's address to where deliver is made, then such electronic communication shall be deemed to have been received on the next following business day; (ii) Notice sent by overnight mail or courier shall be deemed to have been received on the next business day after it was sent or such earlier time as confirmed by the receiving party or courier; and (iii) Notice sent by first class mail, postage prepaid, shall be deemed received five (5) business days after mailing.

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(l)            Construction.  The captions and section and paragraph headings used in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement.  The construction of this Agreement shall not take into consideration the party who drafted or whose representative drafted any portion of this Agreement, and no canon of construction shall be applied that resolves ambiguities against the drafter of the document.

(m)            Exhibits.  All Exhibits attached hereto are hereby incorporated by reference into, and made a part of, this Agreement.

(n)            Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original of this Agreement, but all of which together shall constitute one and the same instrument.  This Agreement may be executed and delivered by facsimile, or by email in portable document format (.pdf) and delivery of the executed signature page by such method will be deemed to have the same effect as if the original signature had been delivered to other the parties.

(o)            Relationship of Parties.  This Agreement shall not be construed as creating an agency, partnership, joint venture or any other form of association, for tax purposes or otherwise, between the parties, and the parties shall at all times be and remain independent contractors.  Except as expressly agreed by the parties in writing, neither party shall have any right or authority, express or implied, to assume or create any obligation of any kind, or to make any representation or warranty, on behalf of the other party or to bind the other party in any respect whatsoever.

(p)            Parties in Interest.  Except as otherwise specifically provided herein to the contrary, nothing in this Agreement shall confer any rights or remedies under or by reason of this Agreement on any person other than the parties hereto and their respective permitted successors and assigns nor shall anything in this Agreement relieve or discharge the obligation or liability of any third person to any party to this Agreement, nor shall any provision give any third person any right of subrogation or action over or against any party to this Agreement.  The parties hereby designate the Company's affiliates who are the recipient of the Services as third party beneficiaries hereto with the right to enforce the terms hereof.

[SIGNATURES TO FOLLOW]

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IN WITNESS WHEREOF, the parties have executed this Consulting Agreement as of the date first written above.

	
 

	
"COMPANY"

	
 

	
 

	
 

	
 

	
ACTIVECARE, INC.,

	
 

	
a Delaware corporation

	
 

	
 

	
 

	
 

	
By:                                                                                    

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
Address:

	
1365 West Business Park Drive

	
 

	
 

	
Suite 100

	
 

	
 

	
Orem, UT 84058

	
 

	
 

	
Attn:  James Dalton

	
 

	
 

	
Telephone:  877-219-6050

	
 

	
 

	
Facsimile:  855-864-2511

	
 

	
 

	
Email:  jim@activecare.com

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
"CONSULTANT"

	
 

	
 

	
 

	 	ADP Management Corporation 
	 	 a Utah corporation 
	 	 	 
	 	 By:	 
	 	 	 
	 	 Its:	 
	 	 	 
	 	 Address:	 1401 North 1075 West
	 	 	
 Suite 240

	 	 	 Farmington, UT 84025
	 	 	 Telephone:  801-451-5742
	 	 	 Facsimile:  801-451-5736
	 	 	 Email:  dderrick@connect2.com
	 	 	 
	 	 	 

SIGNATURE PAGE

TO THE 

CONSULTING AGREEMENT

EXHIBIT A

DESCRIPTION OF THE SERVICES

1.            Any services reasonably requested by the Company that are necessary or useful for the operation and growth of the Business.

2.            Providing advice and assistance regarding the Company's and its affiliates' businesses, including without limitation, (i) developing business plans, (ii) making introductions to potential customers and/or suppliers, (iii) identifying qualified employees and other service providers, (iv) sales, marketing, manufacturing and other operating activities, and (v) meeting with the Company's and its affiliates' respective managers, officers, employees, agents, , and other service providers regarding the business, prospects and affairs of the Company and its affiliates.

3.            Notwithstanding any other provision contained in this Agreement, the Services specifically exclude, and Consultant shall not engage in or be compensated for the following activities: (i) negotiating the purchase and/or sale of Company securities, (ii) making recommendations regarding transactions involving Company securities, or (iii) other matters involving transactions in Company securities.

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