SEC Contract Filing

Filing Date: 2018-03-13

Document Content:
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>ctek_ex10z5.htm
<DESCRIPTION>EXHIBIT 10.5
<TEXT>
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<DIV style=margin-left:72pt;width:468pt><HR style='border:0;height:0;width:0;margin:15pt 0 0 0'><P align=justify style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><FONT style=font-size:10pt><B>THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION AND INTERCREDITOR AGREEMENT (THE &#8220;<I>SUBORDINATION AGREEMENT</I>&#8221;) DATED AS OF MARCH 12, 2018 BY AND AMONG MICHAEL MCMILLAN (THE &#8220;<I>SUBORDINATED CREDITOR</I>&#8221;), CYNERGISTEK, INC., A DELAWARE CORPORATION (THE &#8220;<I>COMPANY</I>&#8221;), CTEK SECURITY, INC., A TEXAS CORPORATION (&#8220;<I>CTEK SECURITY</I>&#8221;), CTEK SOLUTIONS, INC., A CALIFORNIA CORPORATION (&#8220;<I>CTEK SOLUTIONS</I>&#8221;), DELPHIIS, INC., A CALIFORNIA CORPORATION (&#8220;<I>DELPHIIS</I>&#8221;), EACH OTHER GUARANTOR PARTY THERETO FROM TIME TO TIME (TOGETHER WITH THE COMPANY, CTEK SECURITY, CTEK SOLUTIONS, DELPHIIS, AND EACH OTHER OBLIGOR OF THE SENIOR DEBT, THE &#8220;<I>DEBTORS</I>&#8221;), AND BMO HARRIS BANK N.A., A NATIONAL BANKING ASSOCIATION (THE &#8220;<I>SENIOR LENDER</I>&#8221;), TO THE INDEBTEDNESS (INCLUDING INTEREST) OWED BY THE COMPANY PURSUANT TO THAT CERTAIN CREDIT AGREEMENT DATED AS OF MARCH 12, 2018 AMONG THE COMPANY, CTEK SECURITY, CTEK SOLUTIONS, DELPHIIS, EACH OTHER GUARANTOR PARTY THERETO FROM TIME TO TIME AND THE SENIOR LENDER, AS SUCH CREDIT AGREEMENT MAY BE AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME AND TO INDEBTEDNESS REFINANCING THE INDEBTEDNESS UNDER SUCH AGREEMENT AS PERMITTED BY THE SUBORDINATION AGREEMENT; AND EACH HOLDER OF THIS INSTRUMENT, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE SUBORDINATION AGREEMENT.</B></FONT></P>
<P style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><KBD style='position:absolute;text-align:center;font:10pt Times New Roman;width:432pt'><FONT style=font-size:10pt><B>AMENDED AND RESTATED PROMISSORY NOTE</B></FONT></KBD>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:12pt'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'><FONT style=font-size:10pt>$2,250,000.00</FONT></KBD><KBD style=margin-left:360pt></KBD><FONT style=font-size:10pt>March 12, 2018</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>WHEREAS, CynergisTek, Inc., a Delaware corporation (f/k/a Auxilio, Inc., a Nevada corporation) (&#8220;</FONT><FONT style='font-size:10pt;border-bottom:1px solid #000000'>CynergisTek</FONT><FONT style=font-size:10pt>&#8221;), CTEK Security, Inc., a Texas corporation (f/k/a CynergisTek, Inc.) (&#8220;</FONT><FONT style='font-size:10pt;border-bottom:1px solid #000000'>CTEK</FONT><FONT style=font-size:10pt>&#8221;), Michael Hernandez, an individual (f/k/a Dr. Michael G. Mathews) (&#8220;</FONT><FONT style='font-size:10pt;border-bottom:1px solid #000000'>Hernandez</FONT><FONT style=font-size:10pt>&#8221;), and Michael H. McMillan, an individual (&#8220;</FONT><FONT style='font-size:10pt;border-bottom:1px solid #000000'>McMillan</FONT><FONT style=font-size:10pt>&#8221;), entered into a Stock Purchase Agreement dated as of January 13, 2017, pursuant to which CynergisTek (then known as Auxilio, Inc.) acquired all of the shares of common stock of CTEK (then known as CynergisTek, Inc.) from Hernandez and McMillan (the &#8220;</FONT><FONT style='font-size:10pt;border-bottom:1px solid #000000'>Purchase Agreement</FONT><FONT style=font-size:10pt>&#8221;); </FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>WHEREAS, in connection with the Purchase Agreement, CynergisTek and McMillan entered into a Promissory Note dated effective January 13, 2017 in the original principal amount of $4,500,000 (the &#8220;</FONT><FONT style='font-size:10pt;border-bottom:1px solid #000000'>Original Note</FONT><FONT style=font-size:10pt>&#8221;);</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><A name=_DV_M9 /><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>WHEREAS, on or before the date hereof, CynergisTek paid McMillan $2,250,000 of principal on the Original Note, as well as accrued but unpaid interest; and</FONT>&nbsp;</P>
<HR style='border:0;height:0;width:0;margin:15pt 0 0 0'><P align=right style='font:10pt Times New Roman;margin:0'><A name=_iDocIDField5b1c7616-6849-44cd-aca5-ac0a /><FONT style=font-size:10pt>4845-5886-3198.v2</FONT></P>
<HR style='page-break-after:always;border:0;height:3.75pt;background-color:#919191;margin:15pt 0'><P style='font:10pt Times New Roman;margin:0'><FONT style=font-size:10pt> </FONT>&nbsp;</P>
<HR style='border:0;height:0;width:0;margin:15pt 0 0 0'><P align=justify style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>WHEREAS, CynergisTek and McMillan desire to, and have determined it is in their best interests to, amend and restate the Original Note.</FONT>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin-top:0pt;margin-bottom:12pt'><A name=_DV_M15 /><KBD style=margin-left:36pt></KBD><FONT style=font-size:10pt>NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledge