Item 5.02(e)Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Paul Anthony Employment Agreement
On January 4, 2021, CynergisTek, Inc., a Delaware corporation (the "Company")
entered into an employment agreement (the "Employment Agreement") with the
Company's Secretary, Treasurer and Chief Financial Officer, Paul T. Anthony. By
agreement of the parties, the Employment Agreement is effective as of January 1,
2021. The Employment Agreement is on substantially the same terms and
conditions as Mr. Anthony's prior employment agreement, which was replaced and
superseded by the new agreement. Pursuant to the Employment Agreement, Mr.
Anthony will have the duties and responsibilities as are commensurate with the
positions of Secretary, Treasurer and Chief Financial Officer, as reasonably and
lawfully directed by the Company's Chief Executive Officer and Board of
Directors (the "Board"). The initial term of the Employment Agreement is 36
months from the Effective Date and the Employment Agreement will automatically
renew for subsequent 12-month terms unless either party provides written notice
to the other party of a desire not to renew employment.
Pursuant to the Employment Agreement, Mr. Anthony's base salary remained the
same for 2021 at $309,700 and increases in 2022 based on two times the average
percentage salary increase of the Company's active employees during 2021.
Subsequent increases to base salary will be subject to the discretion of the
Compensation Committee of the Board (the "Compensation Committee"). Mr. Anthony
is entitled to the same incentive bonus compensation of up to 67.5% of his base
salary, and equity compensation may be granted from time to time based on the
discretion and recommendation of the Compensation Committee and Board. The
Company has the right to terminate Mr. Anthony's employment without cause at any
time on thirty (30) days' advance written notice to Mr. Anthony. Additionally,
Mr. Anthony has the right to resign for "Good Reason" (as defined in the
Employment Agreement) on thirty (30) days' written notice. In the event of (i)
termination without cause, (ii) Mr. Anthony's inability to perform the essential
functions of his position due to a mental or physical disability or his death,
or (iii) Mr. Anthony's resignation for Good Reason, Mr. Anthony is entitled to
receive (a) his annual base salary then in effect, and full target annual bonus,
each prorated to the date of termination, (b) payment of base salary
compensation for an additional twelve months, payable in accordance with the
Company's regular payroll cycle or as a lump sum, at the discretion of Mr.
Anthony, and (c) the acceleration of all unvested stock options and warrants
then held by Mr. Anthony, subject to certain conditions set forth in the
Employment Agreement. If Mr. Anthony resigns for any reason other than Good
Reason, he will be entitled to receive his base salary for the thirty (30) day
written notice period, but no other amounts.
© Edgar Online, source Glimpses
CYNERGISTEK, INC. 
