Exhibit 10.1
 
SECOND AMENDMENT
TO
LOAN AND SECURITY AGREEMENT
 
This Second Amendment to Loan and Security Agreement is entered into as of April
25, 2014 (the “Amendment”), by and between Avidbank Corporate Finance, a
division of Avidbank (“Bank”), Auxilio, Inc., a Nevada corporation (“Auxilio”)
and Auxilio Solutions, Inc., a California corporation (“Auxilio
Solutions”).  Each of Auxilio and Auxilio Solutions are referred to herein as a
“Borrower”, and collectively, as the “Borrowers”.
 
RECITALS
 
Borrowers and Bank are parties to that certain Loan and Security Agreement dated
as of April 19, 2012 and as amended from time to time, including pursuant to
that certain First Amendment to Loan and Security Agreement dated as of April
26, 2013 (collectively, the “Agreement”).  The parties desire to amend the
Agreement in accordance with the terms of this Amendment.
 
NOW, THEREFORE, the parties agree as follows:
 
1. The following definition in Section 1.1 of the Agreement is amended in its
entirety to read as follows:
 
“Revolving Maturity Date” means April 25, 2015.
 
2. Section 2.3(a) is amended in its entirety to read as follows:
 
(a)           Interest Rates.  Except as set forth in Section 2.3(b), the
Advances shall bear interest, on the outstanding Daily Balance thereof, at a
rate equal to one percent (1.0%) above the Prime Rate.
 
3. The second sentence in Section 2.3(c) (with respect to minimum interest
payments) is deleted in its entirety.
 
4. In addition to the Permitted Indebtedness and Permitted Liens with respect to
financed equipment as set forth in the Agreement, Bank consents to Borrower’s
incurrence of up to $300,000 in new Indebtedness in calendar year 2014 with
respect to additional financed equipment, and such Indebtedness shall constitute
“Permitted Indebtedness” under the Agreement, provided that such Indebtedness
does not exceed the lesser of the cost or fair market value of the equipment
being financed with such Indebtedness and any Lien on such financed equipment to
secure the purchase price of such equipment or indebtedness is incurred solely
for the purpose of financing the acquisition of such equipment
 
5. Unless otherwise defined, all initially capitalized terms in this Amendment
shall be as defined in the Agreement.  The Agreement, as amended hereby, shall
be and remain in full force and effect in accordance with its respective terms
and hereby is ratified and confirmed in all respects.  Except as expressly set
forth herein, the execution, delivery, and performance of this Amendment shall
not operate as a waiver of, or as an amendment of, any right, power, or remedy
of Bank under the Agreement, as in effect prior to the date hereof.  Each
Borrower ratifies and reaffirms the continuing effectiveness of all agreements
entered into in connection with the Agreement.
 
6. Each Borrower represents and warrants that the representations and warranties
contained in the Agreement are true and correct as of the date of this
Amendment, and that no Event of Default has occurred and is continuing.
 
 
 
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7. This Amendment may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one
instrument. In the event that any signature is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such
facsimile or “.pdf” signature page were an original hereof.  Notwithstanding the
foregoing, Borrowers shall deliver all original signed documents no later than
ten (10) Business Days following the date of execution.
 
8. As a condition to the effectiveness of this Amendment, Bank shall have
received, in form and substance satisfactory to Bank, the following:
 
(a) this Amendment, duly executed by Borrowers;
 
(b) corporate resolutions and incumbency certificates duly executed by each
Borrower;
 
(c) an amendment fee equal to $10,000, plus an amount equal to all Bank Expenses
incurred through the date of this Amendment; and
 
(d) such other documents, and completion of such other matters, as Bank may
reasonably deem necessary or appropriate.
 
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
as of the date first above written.
 

 
AUXILIO, INC.
 
By: __________________________________________________     
                                                           
Title: _________________________________________________
 
                                                                
AUXILIO SOLUTIONS, INC.
 
By: __________________________________________________
 
Title: _________________________________________________        
 
                                               
 
AVIDBANK CORPORATE FINANCE,
A DIVISION OF AVIDBANK
 
By: __________________________________________________
 
Title: _________________________________________________     
                                                  

 

 
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