Document:

APOLLO MEDICAL HOLDINGS, INC.

 

2013 EQUITY INCENTIVE PLAN

 

Date
of Adoption by the Board of Directors: April 30, 2013

 

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2013 EQUITY INCENTIVE PLAN

 

		1.	PURPOSES OF THE PLAN

 

The purposes of the 2013 Equity Incentive
Plan (the “Plan”) of Apollo Medical Holdings, Inc., a Delaware corporation (the “Company”),
are to:

 

1.1           Encourage
selected employees, directors, consultants and advisers to improve operations and increase the profitability of the Company;

 

1.2           Encourage
selected employees, directors, consultants and advisers to accept or continue employment or association with the Company or its
Affiliates (as defined below); and

 

1.3           Increase
the interest of selected employees, directors, consultants and advisers in the Company’s welfare through participation in
the growth in value of the common stock of the Company (the “Common Stock”). All references herein to stock
or shares, unless otherwise specified, shall mean the Common Stock.

 

		2.	TYPES OF AWARDS; ELIGIBLE PERSONS

 

2.1           The
Administrator (as defined below) may, from time to time, take the following action, separately or in combination, under the Plan:
(a) grant “incentive stock options” (“ISOs”) intended to satisfy the requirements of Section 422
of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”); (b) grant “non-qualified
options” (“NQOs,” and together with ISOs, “Options”); (c) issue or sell shares of Common
Stock (“Restricted Stock”) and (d) grant stock appreciation rights (any such right would permit the holder to
receive the excess of the fair market value of Common Stock on the exercise date over its fair market value (or a greater base
value) on the grant date (“SARs”)), either in tandem with Options or as separate and independent grants. Any
such awards may be made to employees, including employees who are officers or directors, and to individuals described in Section
1 of the Plan who the Administrator believes have made or will make a contribution to the Company or any Affiliate; provided,
however, that only a person who is an employee of the Company or any Affiliate at the date of the grant of an Option is
eligible to receive ISOs under the Plan.

 

2.2           For
purposes of the Plan: (a) the term “Affiliate” means a parent or subsidiary corporation as defined in the applicable
provisions (currently Section 424(e) and 424(f), respectively) of the Code; (b) the term “employee” includes
an officer or director who is an employee of the Company; (c) the term “consultant” includes persons employed
by, or otherwise affiliated with, a consultant; and (d) the term “adviser” includes persons employed by, or
otherwise affiliated with, an adviser.

 

2.3           Except
as otherwise expressly set forth in the Plan, no right or benefit under the Plan shall be subject in any manner to anticipation,
alienation, hypothecation, or charge, and any such attempted action shall be void. No right or benefit under the Plan shall in
any manner be liable for or subject to debts, contracts, liabilities, or torts of any optionee or any other person except as otherwise
may be expressly required by applicable law.

 

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		3.	STOCK SUBJECT TO THE PLAN; MAXIMUM NUMBER OF GRANTS

 

3.1           Subject
to the provisions of Section 3.2, the total number of shares of Common Stock that may be issued as Restricted Stock or on the exercise
of Options or SARs under the Plan shall not exceed Five Million (5,000,000) shares. The shares subject to an Option or SAR granted
under the Plan that expire, terminate or are cancelled unexercised shall become available again for grants under the Plan. If shares
of Restricted Stock awarded under the Plan are forfeited to the Company or repurchased by the Company, the number of shares forfeited
or repurchased shall again be available under the Plan. Where the exercise price of an Option is paid by means of the optionee’s
surrender of previously owned shares of Common Stock or the Company’s withholding of shares otherwise issuable upon exercise
of the Option as may be permitted in the Plan, only the net number of shares issued and which remain outstanding in connection
with such exercise shall be deemed “issued” and no longer available for issuance under the Plan. No eligible person
shall be granted Options or other awards during any twelve-month period covering more than One Million Two Hundred Thousand (1,200,000)
shares.

 

3.2           If
the Common Stock is changed by reason of a stock split, reverse stock split, stock dividend, recapitalization, combination or reclassification,
then the number and class of shares of stock subject to the Plan that may be issued under the Plan shall be proportionately adjusted
(provided that any fractional share resulting from such adjustment shall be disregarded).

 

		4.	ADMINISTRATION

 

4.1           The
Plan shall be administered by the Board of Directors of the Company (the “Board”) or by a committee (the “Committee”)
to which the Board has delegated administration of the Plan (or of part thereof) (in either case, the “Administrator”).
The Board shall appoint and remove members of the Committee in its discretion in accordance with applicable laws. At the Board’s
discretion, or if necessary in order to comply with Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or Section 162(m) of the Code, the Committee shall, in the Board’s discretion, be comprised solely of “non-employee
directors” within the meaning of said Rule 16b-3 or “outside directors” within the meaning of Section 162(m)
of the Code. The foregoing notwithstanding, the Administrator may delegate non-discretionary administrative duties to such employees
of the Company as it deems proper and the Board, in its absolute discretion, may at any time and from time to time exercise any
and all rights and duties of the Administrator under this Plan.

 

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4.2           Subject
to the other provisions of the Plan, the Administrator shall have the authority, in its discretion: (a) to grant Options and SARs
and grant or sell Restricted Stock; (b) to determine the fair market value of the shares of Common Stock subject to Options or
other awards; (c) to determine the exercise price of Options granted, which shall be no less than the fair market value of the
Common Stock on the date of grant, the economic terms of SARs granted, which shall provide for a benefit of the appreciation on
Common Stock over not less than the value of the Common Stock on the date of grant, or the offering price of Restricted Stock;
(d) to determine the persons to whom, and the time or times at which, Options or SARs shall be granted or Restricted Stock granted
or sold, and the number of shares subject to each Option or SAR or the number of shares of Restricted Stock granted or sold; (e)
to construe and interpret the terms and provisions of the Plan, of any applicable agreement and all Options and SARs granted under
the Plan, and of any Restricted Stock award under the Plan; (f) to prescribe, amend, and rescind rules and regulations relating
to the Plan; (g) to determine the terms and provisions of each Option and SAR granted and award of Restricted Stock (which need
not be identical), including but not limited to, the time or times at which Options and SARs shall be exercisable or the time at
which the restrictions on Restricted Stock shall lapse; (h) with the consent of the Grantee, to rescind any award or exercise of
an Option or SAR; (i) to modify or amend the terms of any Option, SAR or Restricted Stock (with the consent of the Grantee or holder
of the Restricted Stock if the modification or amendment is adverse to the Grantee or holder); (j) to reduce the purchase price
of Restricted Stock or exercise price of any Option or base price of any SAR; (k) to accelerate or defer (with the consent of the
Grantee) the exercise date of any Option or SAR or the date on which the restrictions on Restricted Stock lapse; (l) to issue shares
of Restricted Stock to an optionee in connection with the accelerated exercise of an Option by such optionee; (m) to authorize
any person to execute on behalf of the Company any instrument evidencing the grant of an Option, SAR or award of Restricted Stock;
(n) to determine the duration and purposes of leaves of absence which may be granted to participants without constituting a termination
of their employment for the purposes of the Plan; and (o) to make all other determinations deemed necessary or advisable for the
administration of the Plan, any applicable agreement, Option, SAR or award of Restricted Stock.

 

4.3           All
questions of interpretation, implementation, and application of the Plan or any agreement or Option, SAR or award of Restricted
Stock shall be determined by the Administrator, which determination shall be final and binding on all persons.

 

		5.	GRANTING OF OPTIONS AND SARS; AGREEMENTS

 

5.1           No
Options or SARs shall be granted under the Plan after 10 years from the date of adoption of the Plan by the Board.

 

5.2           Each
Option and SAR shall be evidenced by a written agreement, in form satisfactory to the Administrator, executed by the Company and
the person to whom such grant is made (“Grantee,” which term shall include the permitted successors and assigns
of the Grantee with respect to the Option or SAR). In the event of a conflict between the terms or conditions of an agreement and
the terms and conditions of the Plan, the terms and conditions of the Plan shall govern.

 

5.3           Each
Option agreement shall specify whether the Option it evidences is an NQO or an ISO, provided, however, all Options
granted under the Plan to non-employee directors, consultants and advisers of the Company are intended to be NQOs.

 

5.4           Subject
to Section 6.3.3 with respect to ISOs, the Administrator may approve the grant of Options or SARs under the Plan to persons who
are expected to become employees, directors, consultants or advisers of the Company, but are not employees, directors, consultants
or advisers at the date of approval, and the date of approval shall be deemed to be the date of grant unless otherwise specified
by the Administrator.

 

5.5           For
purposes of the Plan, the term “employment” shall be deemed to include service as an employee, director, consultant
or adviser. For avoidance of any doubt, a person who is in the employment of the Company is not necessarily an “employee”
for purposes of ISOs.

 

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		6.	TERMS AND CONDITIONS OF OPTIONS AND SARS

 

Each Option and SAR granted under the Plan
shall be subject to the terms and conditions set forth in Section 6.1. NQOs and SARs shall also be subject to the terms and conditions
set forth in Section 6.2, but not those set forth in Section 6.3. ISOs shall also be subject to the terms and conditions set forth
in Section 6.3, but not those set forth in Section 6.2. SARs shall be subject to the terms and conditions of Section 6.4.

 

6.1         Terms
and Conditions to Which All Options and SARs Are Subject. All Options and SARs granted under the Plan shall be subject to the
following terms and conditions:

 

6.1.1           Changes
in Capital Structure. Subject to Section 6.1.2, if the Common Stock is changed by reason of a stock split, reverse stock split,
stock dividend, recapitalization, combination or reclassification, then the number and class of shares of stock subject to each
Option and SAR outstanding under the Plan, and the exercise price of each outstanding Option and the base value of SAR, shall be
automatically and proportionately adjusted; provided, that the Company shall not be required to issue fractional shares
as a result of any such adjustments. Such adjustment, however, in any outstanding Option or SAR shall be made without change in
the total price applicable to the unexercised portion of the Option or SAR but with a corresponding adjustment in the price for
each share covered by the unexercised portion of the Option or SAR. Any determination by the Administrator in connection with these
adjustments shall be final, binding, and conclusive. If an adjustment under this Section 6.1.1 would result in a fractional share
interest under an option or any installment, the Administrator’s decision as to inclusion or exclusion of that fractional
share interest shall be final, but no fractional shares of stock shall be issued under the Plan on account of any such adjustment.

 

6.1.2           Corporate
Transactions. The provisions of this Section 6.1.2 shall apply to all Options and SARs granted under this Plan unless otherwise
provided for in the stock option agreement or in a separate employment or other agreement between the Grantee and the Company.
To the extent not previously exercised, all Options and SARs shall terminate immediately prior to the consummation of a Corporate
Transaction (as defined below) unless the Administrator determines otherwise in its sole discretion, provided, however,
that the Administrator, in its sole discretion, may (i) permit exercise of any Options and/or SARs prior to their termination,
even if such Options and/or SARs would not otherwise have been exercisable (provided that the Option or SAR has not expired by
its terms and that the Grantee takes all steps necessary to exercise the Option or SAR prior to the Corporate Transaction as required
by the agreement evidencing the Option or SAR), and/or (ii) provide that all or certain of the outstanding Options or SARs shall
be assumed or an equivalent option substituted by an applicable successor corporation or any Affiliate of the successor corporation
in the event of a Corporate Transaction. A “Corporate Transaction” means (i) a liquidation or dissolution of
the Company; (ii) a merger or consolidation of the Company with or into another corporation or entity (other than a merger with
a wholly-owned subsidiary); or (iii) a sale of all or substantially all of the assets of the Company in a single transaction or
a series of related transactions.

 

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6.1.3         Time
of Option or SAR Exercise. Subject to Section 5 and 6.3.4, an Option or SAR granted under the Plan shall be exercisable (a)
immediately as of the effective date of the applicable agreement granting the Option or SAR or (b) in accordance with a schedule
or performance criteria as may be set by the Administrator and specified in the applicable agreement. However, in no case may an
Option or SAR be exercisable until the Company and the Grantee execute a written agreement in form and substance satisfactory to
the Company.

 

6.1.4         Grant
Date. The date of grant of an Option or SAR under the Plan shall, for all purposes, be no earlier than the date on which the
Board or Administrator makes the determination granting such option, or any date thereafter specified by the Board or Administrator
in such approval and reflected as the effective date of the applicable agreement.

 

6.1.5         Non-Transferability
of Rights. Except with the express written approval of the Administrator, which approval the Administrator is authorized to
give only with respect to NQOs and SARs, no Option or SAR granted under the Plan shall be assignable or otherwise transferable
by the Grantee except by will or by the laws of descent and distribution. During the life of the Grantee, an Option or SAR shall
be exercisable only by the Grantee or permitted transferee.

 

6.1.6         Payment.
Except as provided below, payment in full, in cash, shall be made for all Common Stock purchased at the time written notice of
exercise of an Option is given to the Company and the proceeds of any payment shall be considered general funds of the Company.
The Administrator in its sole discretion may include in any Option agreement, or separately approve in connection with the exercise
of any Option, any one or more of the following additional methods of payment (provided such payment does not violate applicable
law or regulations or the rules of any securities exchange on which the Company’s securities may be listed):

 

  (a)          Acceptance of the Grantee’s full recourse
promissory note for all or part of the Option price, payable on such terms and bearing such interest rate as determined by
the Administrator (but in no event less than the minimum interest rate specified under the Code at which no additional
interest or original issue discount would be imputed), which promissory note may be either secured or unsecured in such
manner as the Administrator shall approve (including, without limitation, by a security interest in the shares of the
Company);

 

  (b)          Delivery
by the optionee of shares of Common Stock already owned by the optionee for all or part of the Option price, provided the fair
market value (determined as set forth in Section 6.1.10) of such shares of Common Stock is equal on the date of exercise to the
Option price, or such portion thereof as the optionee is authorized to pay by delivery of such stock;

 

  (c)          Through
the surrender of shares of Common Stock then issuable upon exercise of the Option, provided the fair market value (determined as
set forth in Section 6.1.10) of such shares of Common Stock is equal on the date of exercise to the Option price, or such portion
thereof as the optionee is authorized to pay by surrender of such stock; and

 

  (d)          By
means of so-called cashless exercises through a securities broker as permitted under applicable rules and regulations of the Securities
and Exchange Commission and the Federal Reserve Board.

 

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6.1.7         Termination
of Employment. Unless otherwise provided in the applicable agreement, if for any reason a Grantee ceases to be employed by
at least the Company or one of its Affiliates, each Option and SAR held by the Grantee at the date of termination of employment
(to the extent then exercisable) may be exercised in whole or in part at any time (but in no event after the Expiration Date and
or the termination of the Option or SAR pursuant to Section 6.1.2) within one year of the date of termination in the case of termination
by reason of death or disability; at the commencement of business on the date of a termination for “cause” (as defined
in the applicable agreement or in any agreement with the Company pertaining to employment); and, in all other cases, within 90
days of the date of termination. For purposes of this Section 6.1.7, a Grantee’s employment shall not be deemed to terminate
by reason of the Grantee’s transfer from the Company to an Affiliate, or vice versa, or sick leave, military leave or other
leave of absence approved by the Administrator, if the period of any such leave does not exceed 90 days or, if longer, if the Grantee’s
right to reemployment by the Company or any Affiliate is guaranteed either contractually or by statute.

 

6.1.8         Withholding
and Employment Taxes. At the time of exercise and as a condition thereto, or at such other time as the amount of such obligation
becomes determinable, the Grantee of an Option or SAR shall remit to the Company in cash all applicable federal and state withholding
and employment taxes. Such obligation to remit may be satisfied, if authorized by the Administrator in its sole discretion, after
considering any tax, accounting and financial consequences, by the Grantee’s (a) delivery of a promissory note in the required
amount on such terms as the Administrator deems appropriate, (b) tendering to the Company previously owned shares of Common Stock
or other securities of the Company with a fair market value equal to the required amount, or (c) agreeing to have shares of Common
Stock (with a fair market value equal to the required amount), which are acquired upon exercise of the Option or SAR, withheld
by the Company.

 

6.1.9         Other
Provisions. Each Option and SAR granted under the Plan may contain such other terms, provisions, and conditions not inconsistent
with the Plan as may be determined by the Administrator, and each ISO granted under the Plan shall include such provisions and
conditions as are necessary to qualify the Option as an “incentive stock option” within the meaning of Section 422
of the Code.

 

6.1.10       Determination
of Fair Market Value. For purposes of the Plan, Board of Directors shall determine the fair market value of Common Stock of
the Company on the date of grant as follows:

 

  (a)          “Fair
Market Value” on any given date means the value of one share of Common Stock, determined by the Board of Directors under
Treasury Regulation Section 1.409A, using the volume weighted-average closing stock price of the Company’s Common Stock for
the trailing 30-day period. If there is no trading volume on a given day, the mean of the high bid and low ask price will be used
as the day’s closing stock price, and the mean of the high bid and low ask volumes will be used as the day’s volume.

 

  (b)          In
the absence of an established market for the stock, the fair market value thereof shall be determined in good faith by the Board
of Directors, with reference to the Company’s net worth, prospective earning power, dividend-paying capacity, and other relevant
factors, including the goodwill of the Company, the economic outlook in the Company’s industry, the Company’s position
in the industry, the Company’s management, and the values of stock of other corporations in the same or a similar line of
business.

 

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6.1.11       Option
and SAR Term. Subject to Section 6.3.4, no Option or SAR shall be exercisable more than 10 years after the date of grant, or
such lesser period of time as is set forth in the applicable agreement (the end of the maximum exercise period stated in the agreement
is referred to in the Plan as the “Expiration Date”).

 

6.2         Terms
and Conditions to Which Only NQOs and SARs Are Subject. Options granted under the Plan which are designated as NQOs and SARs
shall be subject to the following terms and conditions:

 

6.2.1         Exercise
Price. The exercise price of an NQO and the base value of an SAR shall be the amount determined by the Administrator as specified
in the option or SAR agreement, but shall not be less than the fair market value of the Common Stock on the date of grant (determined
under Section 6.1.10).

 

6.3         Terms
and Conditions to Which Only ISOs Are Subject. Options granted under the Plan which are designated as ISOs shall be subject
to the following terms and conditions:

 

6.3.1         Exercise
Price. The exercise price of an ISO shall not be less than the fair market value (determined in accordance with Section 6.1.10)
of the stock covered by the Option at the time the Option is granted. The exercise price of an ISO granted to any person who owns,
directly or by attribution under the Code (currently Section 424(d)), stock possessing more than 10% of the total combined voting
power of all classes of stock of the Company or of any Affiliate (a “10% Stockholder”) shall in no event be
less than 110% of the fair market value (determined in accordance with Section 6.1.10) of the stock covered by the Option at the
time the Option is granted.

 

6.3.2           Disqualifying
Dispositions. If stock acquired by exercise of an ISO granted pursuant to the Plan is disposed of in a “disqualifying
disposition” within the meaning of Section 422 of the Code (a disposition within two years from the date of grant of the
Option or within one year after the issuance of such stock on exercise of the Option), the holder of the stock immediately before
the disposition shall promptly notify the Company in writing of the date and terms of the disposition and shall provide such other
information regarding the Option as the Company may reasonably require.

 

6.3.3           Grant
Date. If an ISO is granted in anticipation of employment as provided in Section 5.4, the Option shall be deemed granted, without
further approval, on the date the Grantee assumes the employment relationship forming the basis for such grant, and, in addition,
satisfies all requirements of the Plan for Options granted on that date.

 

6.3.4           Term.
Notwithstanding Section 6.1.11, no ISO granted to any 10% Stockholder shall be exercisable more than five years after the date
of grant.

 

6.4         Terms
and Conditions Applicable Solely to SARs. In addition to the other terms and conditions applicable to SARs in this Section
6, the holder shall be entitled to receive on exercise of an SAR only Common Stock at a fair market value equal to the benefit
to be received by the exercise.

 

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6.5         Manner
of Exercise. A Grantee wishing to exercise an Option or SAR shall give written notice to the Company at its principal executive
office, to the attention of the officer of the Company designated by the Administrator, accompanied by payment of the exercise
price and/or withholding taxes as provided in Sections 6.1.6 and 6.1.8. The date the Company receives written notice of an exercise
hereunder accompanied by the applicable payment will be considered as the date such Option or SAR was exercised. Promptly after
receipt of written notice of exercise and the applicable payments called for by this Section 6.5, the Company shall, without stock
issue or transfer taxes to the holder or other person entitled to exercise the Option or SAR, deliver to the holder or such other
person a certificate or certificates for the requisite number of shares of Common Stock. A holder or permitted transferee of an
Option or SAR shall not have any privileges as a stockholder with respect to any shares of Common Stock to be issued until the
date of issuance (as evidenced by the appropriate entry on the books of the Company or a duly authorized transfer agent) of such
shares.

 

		7.	RESTRICTED STOCK

 

7.1         Grant
or Sale of Restricted Stock.

 

7.1.1           No
grants or sales of Restricted Stock shall be made under the Plan after 10 years from the date of adoption of the Plan by the Board.

 

7.1.2           The
Administrator may issue Restricted Stock under the Plan for such consideration (including past or future services, any benefit
to the Company, and, subject to applicable law, recourse promissory notes) and such other terms, conditions and restrictions as
determined by the Administrator. The restrictions may include restrictions concerning transferability, repurchase by the Company
and forfeiture of the shares issued, together with such other restrictions as may be determined by the Administrator. If shares
are subject to forfeiture or repurchase by the Company, all dividends or other distributions paid by the Company with respect to
the shares may be retained by the Company until the shares are no longer subject to forfeiture or repurchase, at which time all
accumulated amounts shall be paid to the recipient.

 

7.1.3           All
Common Stock issued pursuant to this Section 7.1 shall be subject to an agreement, which shall be executed by the Company and the
prospective recipient of the Common Stock prior to the delivery of certificates representing such stock to the recipient. The agreement
may contain any terms, conditions, restrictions, representations and warranties required by the Administrator. The certificates
representing the shares shall bear any legends required by the Administrator.

 

7.1.4           The
Administrator may require any purchaser or grantee of Restricted Stock to pay to the Company in cash, upon demand, amounts necessary
to satisfy any applicable federal, state or local tax withholding requirements. If the purchaser or grantee fails to pay the amount
demanded, the Administrator may withhold that amount from other amounts payable by the Company to the purchaser or grantee, including
salary, subject to applicable law. With the consent of the Administrator in its sole discretion, a purchaser may deliver Common
Stock to the Company to satisfy this withholding obligation.

 

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7.2           Corporate
Transactions. All restricted stock subject to forfeiture as of the occurrence of any Corporate Transaction shall be forfeited
immediately prior to the consummation of such Corporate Transaction unless the Administrator determines otherwise in its sole discretion.
The Administrator, in its sole discretion, may remove any restrictions as to any outstanding restricted stock. The Administrator
may, in its sole discretion, provide that all outstanding restricted stock participate in the Corporate Transaction with an equivalent
stock substituted by an applicable successor corporation subject to the restriction.

 

		8.	EMPLOYMENT OR CONSULTING RELATIONSHIP

 

Nothing in the Plan, any Option or SAR granted
under the Plan, or any Restricted Stock granted or sold under the Plan, shall interfere with or limit in any way the right of the
Company or of any of its Affiliates to terminate the employment of any Grantee or holder of Restricted Stock or an SAR at any time,
nor confer upon any Grantee or holder of Restricted Stock or an SAR any right to continue in the employ of, or consult with, or
advise, the Company or any of its Affiliates.

 

		9.	CONDITIONS UPON ISSUANCE OF SHARES

 

Notwithstanding the provisions of any Option,
SAR or offer of Restricted Stock, the Company shall have no obligation to issue shares under the Plan unless such issuance shall
be either registered or qualified under applicable securities laws, including, without limitation, the Securities Act, or exempt
from such registration or qualification. The Company shall have no obligation to register or qualify such issuance under the Securities
Act or other securities laws.

 

		10.	NON-EXCLUSIVITY OF THE PLAN

 

The adoption of the Plan shall not be construed
as creating any limitations on the power of the Company to adopt such other incentive arrangements as it may deem desirable, including,
without limitation, the granting of stock options other than under the Plan.

 

		11.	MARKET STAND-OFF

 

Each Grantee and recipient of Restricted
Stock, if so requested by the Company or any representative of the underwriters in connection with any registration of any securities
of the Company under the Securities Act, shall not sell or otherwise transfer any shares of Common Stock acquired upon exercise
of Options or SARs, or such Restricted Stock or receipt of Restricted Stock during a period of up to 180 days following the effective
date of a registration statement of the Company filed under the Securities Act; provided, however, that such restriction
is applicable to all directors and officers of the Company.

 

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		12.	AMENDMENTS TO PLAN

 

The Board may at any time amend, alter,
suspend or discontinue the Plan. Without the consent of a Grantee or holder of Restricted Stock, no amendment, alteration, suspension
or discontinuance may adversely affect such person’s outstanding Option(s), SAR(s) or the terms applicable to Restricted
Stock except to conform the Plan and ISOs granted under the Plan to the requirements of federal or other tax laws relating to ISOs.
No amendment, alteration, suspension or discontinuance to the Plan shall require stockholder approval unless (a) stockholder approval
is required to preserve incentive stock option treatment for federal income tax purposes; (b) the Board otherwise concludes that
stockholder approval is advisable; or (c) such approval is required under the rules of any securities exchange on which securities
of the Company are registered.

 

		13.	COMPLIANCE WITH CALIFORNIA CODE OF REGULATIONS.

 

13.1       Except
during any period in which the grant of Options and grant or sale of Restricted Stock under this Plan is exempt from qualification
under the California Corporate Securities Law of 1968 pursuant to any exemption other than Section 25102(o) of such Law, the Plan,
all Options granted and all Restricted Stock granted or sold under the Plan shall comply with Sections 260.140.41, 260.140.42,
260.140.45 and 260.140.46 of Title 10 of the California Code of Regulations, as in effect and as from time to time amended (“Title
10”), including the following (which shall be deemed modified or amended by any corresponding change in the applicable regulations):

 

13.1.1           At
no time shall the total number of securities issuable upon exercise of all outstanding options (excluding options, warrants and
rights excluded by Section 260.140.45) and the total number of shares provided for under any stock bonus or similar plan or agreement
of the Company exceed the 30% limitation set forth in Section 260.140.45 of Title 10 based on the securities of the Company which
are outstanding at the time the calculation is made.

 

13.1.2           The
exercise price of the Option, and the purchase price of Restricted Stock, shall not be less than 85% (100% in the case of any person
who owns securities possessing more than 10% of the total combined voting power of all classes of securities of the Company) of
the fair market value of the stock covered by the Option at the time the Option is granted (with fair value and total combined
voting power determined in accordance with Section 260.140.41(b) and 260.140.42(b), as applicable, of Title 10).  

 

13.1.3           No
Option shall be transferable except by will, the laws of descent and distribution, or as permitted by Rule 701 under the Securities
Act of 1933, as amended.

 

13.1.4           If
the Option is granted to an employee other than an officer, director, manager or consultant, it shall be exercisable at the rate
of at least 20% per year over five years.

 

13.1.5           If
the Restricted Stock is sold to an employee other than an officer, director, manager or consultant, any right to repurchase at
the original purchase price must lapse at the rate of at least 20% per year over five years and the right to repurchase must be
exercised for cash or cancellation of purchase money indebtedness for the stock within 90 days of termination of employment.

 

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13.1.6           If
the Option gives the Company the right to repurchase shares acquired upon exercise of the Option upon termination of employment,
it must comply with Section 260.140.41 of Title 10.

 

13.1.7           The
Option shall remain exercisable (to the extent the optionee is entitled to exercise on the date of termination of employment) for
at least: (i) six months after the date of termination of employment where termination occurs by reason of an optionee’s
death or disability; or (ii) 30 days after the date of termination of employment if termination was for any reason other than death,
disability or termination by the Company for cause (as defined in the applicable agreement or in any agreement with the Company
pertaining to employment) (provided that in each case that the Option shall not be exercisable after the Expiration Date).

 

13.2       Annual
Financial Statements. The Company shall provide to each Grantee financial statements of the Company at least annually.

 

		14.	EFFECTIVE DATE OF PLAN; DISCONTINUANCE OR TERMINATION
OF PLAN

 

The Plan became effective on April 30, 2013,
the date of adoption by the Board; provided, however, that no shares of Common Stock shall be issued, and no Option
or SAR shall be exercisable, unless and until the Plan is approved by the holders of a majority of the stockholders of the Company
entitled to vote within 12 months after adoption by the Board. If any Options or SARs are so granted and stockholder approval shall
not have been obtained within 12 months of the date of adoption of the Plan by the Board, such Options and SARs shall terminate
retroactively as of the date they were granted. The Board may at any time adopt a resolution stating the no more awards will be
granted under the Plan. The Plan shall terminate upon the first date at which there shall not be any outstanding Options or SARS
or any outstanding Restricted Stock subject to vesting and/or repurchase conditions following the first to occur of: (a) ten years
after the Effective Date, or (b) the date the Board adopts a resolution discontinuing the grant of awards under the Plan.

 

    	12BOARD OF DIRECTORS AGREEMENT

 

This Board of Directors Agreement (“Agreement”)
made as of May 22, 2013 by and between Apollo Medical Holdings, Inc., with its principal place of business at 700 N. Brand Blvd,
Suite 220, Glendale, California, 91203 (“ApolloMed”) and David G Schmidt, with an address of ________________________
___________, (the “Director”) provides for director services, according to the following terms and conditions:

 

I.      Services Provided

 

ApolloMed agrees to engage the Director to serve on the Board
of Directors of ApolloMed and to provide those services required of a director under ApolloMed’s Certificate of Incorporation
and Bylaws, as both may be amended from time, to time (“Articles and Bylaws”) and under the General Corporation Law
of Delaware, the federal securities laws and other state and federal laws and regulations, as applicable. Director will also serve
as Chairman of the Audit Committee of ApolloMed.

 

II.      Nature of Relationship

 

The Director is an independent contractor and will not be deemed
an employee of ApolloMed for purposes of employee benefits, income tax withholding, F.I.C.A. taxes, unemployment benefits or otherwise. 
The Director shall not enter into any agreement or incur any obligations on ApolloMed’s behalf.

 

ApolloMed will supply, at no cost to the Director:  periodic
briefings on the business, director packages for each board and committee meeting, copies of minutes of meetings and any other
materials that are required under ApolloMed’s Articles and Bylaws or the charter of any committee of the board on which the
Director serves and any other materials which may, by mutual agreement, be necessary for performing the services requested under
this Agreement.

 

III.      Director’s Warranties

 

The Director warrants that no other party has exclusive rights
to his services in the specific areas in which ApolloMed is conducting business and that the Director is in no way compromising
any rights or trust between any other party and the Director or creating a conflict of interest as a result of his participation
on the Board of Directors of ApolloMed.  The Director also warrants that so long as the Director serves on the board of the
directors of ApolloMed, the Director will not enter into another agreement that will create a conflict of interest with this Agreement. 
The Director further warrants that he will comply with all applicable state and federal laws and regulations, as applicable, including
Sections 10 and 16 of the Securities and Exchange Act of 1934.

 

Throughout the term of this Agreement, the Director agrees he
will not, without obtaining ApolloMed’s prior written consent, directly or indirectly engage or prepare to engage in any
activity in competition with any ApolloMed business or product, including products in the development stage, accept employment
or provide services to (including service as a member of a board of directors), or establish a business in competition with ApolloMed.

 

IV.      Compensation

 

A.  Cash Fee

 

During the term of this Agreement, ApolloMed shall pay the Director
a nonrefundable fee of $1,000 per board of director meeting in consideration for the Director providing the services described
in Section I which shall compensate him for all time spent preparing for, travelling to (if applicable) and attending board of
director meetings; provided, however, that if any board meetings or duties require out-of-town travel time, such additional travel
time may be billed at the rate set forth in subparagraph C of Section IV below.  This cash fee may be revised by action of
ApolloMed’s Board of Directors from time to time.  Such revision shall be effective as of the date specified in the
resolution for payments not yet earned and need not be documented by an amendment to this Agreement.

 

    	1

    	 

    

 

B.    Equity Compensation

 

Issuance of Shares. Upon the execution and delivery of
this Agreement, ApolloMed shall issue to the Director (or designee of the Director) a restricted stock award of 400,000 options
of ApolloMed’s common stock (collectively, the “Options”). Pursuant to the request of the Director, all of the
securities shall be issued in the name of “____________” and the Options that have not been released from Escrow (as
defined herein below) may not be sold, pledged, hypothecated or otherwise transferred to any other person. All certificates representing
the Shares shall bear a legend regarding the fact that the Shares are not registered under the Securities Act of 1933, as amended
(the “Securities Act”), and none of the Shares may be sold, pledged, hypothecated or otherwise transferred without
compliance with Federal and applicable state securities laws.

 

Exercise Schedule: The Option shall become
exercisable (“vest”) as follows:

 

	Date	Number of Shares
	 	 
	[Immediately]	133,334
	[First anniversary]	133,333
	[Second anniversary]	133,333

 

C.    Additional Payments

 

To the extent services described in Section I require out-of-town
trips, such additional travel time may be charged at the rate of $1,200 per day or pro rated portion thereof.   This
rate may be revised by action of ApolloMed’s Board of Directors from time to time for payments not yet earned.  Such
revision shall be effective as of the date specified in the resolution and need not be documented by an amendment to this Agreement.

 

D.    Payment

 

Cash fees shall be made quarterly in cash in advance on the
first day of each accounting quarter.  Additional payments shall be made in arrears.  No invoices need be submitted by
the Director for payment of the cash fee.  Invoices for additional payments under subparagraph C of Section IV, above, shall
be submitted by the Director. Such invoices must be approved by ApolloMed’s Chief Executive Officer as to form and completeness.

 

E.    Expenses

 

ApolloMed will reimburse the Director for reasonable expenses
approved in advance, such approval not to be unreasonably withheld.  Invoices for expenses, with receipts attached, shall
be submitted. Such invoices must be approved by ApolloMed’s Chief Executive Officer as to form and completeness.

 

V.      Indemnification and Insurance

 

ApolloMed will execute an indemnification agreement in favor
of the Director substantially in the form of the agreement attached hereto as Exhibit B (the “Indemnification Agreement”). 
In addition, so long as ApolloMed’s indemnification obligations exist under the Indemnification Agreement, ApolloMed shall
provide the Director with directors and officers liability insurance coverage in the amounts specified in the Indemnification Agreement.

 

    	2

    	 

    

 

VI.      Term of Agreement

 

This Agreement shall be in effect from the date hereof through
the last date of the Director’s current term as a member of ApolloMed’s Board of Directors.  This Agreement shall
be automatically renewed on the date of the Director’s reelection as a member of ApolloMed’s Board of Director’s
for the period of such new term unless the Board of Directors determines not to renew this Agreement.   Any amendment
to this Agreement must be approved by a written action of ApolloMed’s Board of Directors.  Amendments to Section IV
Compensation hereof do not require the Director’s consent to be effective.

 

VII.      Termination

 

This Agreement shall automatically terminate upon the death
of the Director or upon his resignation or removal from, or failure to win election or reelection to, the ApolloMed Board of Directors.

 

In the event of any termination of this Agreement, the Director
agrees to return or destroy any materials transferred to the Director under this Agreement except as may be necessary to fulfill
any outstanding obligations hereunder.  The Director agrees that ApolloMed has the right of injunctive relief to enforce this
provision.

 

ApolloMed’s and the Director’s continuing obligations
hereunder in the event of such termination shall be subject to the terms of Section XIV hereof.

 

VIII.      Limitation of Liability

 

Under no circumstances shall ApolloMed be liable to the Director
for any consequential damages claimed by any other party as a result of representations made by the Director with respect to ApolloMed
which are materially different from any to those made in writing by ApolloMed.

 

Furthermore, except for the maintenance of confidentiality,
neither party shall be liable to the other for delay in any performance, or for failure to render any performance under this Agreement
when such delay or failure is caused by Government regulations (whether or not valid), fire, strike, differences with workmen,
illness of employees, flood, accident, or any other cause or causes beyond reasonable control of such delinquent party.

 

IX.      Confidentiality

 

The Director agrees to sign and abide by ApolloMed’s Director
Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit A.

 

X.      Resolution of Dispute

 

Any dispute regarding the agreement (including without limitation
its validity, interpretation, performance, enforcement, termination and damages) shall be determined in accordance with the laws
of the State of California, the United States of America.  Any action under this paragraph shall not preclude any party hereto
from seeking injunctive or other legal relief to which each party may be entitled.

 

XI.      Sole Agreement

 

This Agreement (including agreements executed in substantially
in the form of the exhibits attached hereto) supersedes all prior or contemporaneous written or oral understandings or agreements,
and may not be added to, modified, or waived, in whole or in part, except by a writing signed by the party against whom such addition,
modification or waiver is sought to be asserted.

 

    	3

    	 

    

 

XII.      Assignment

 

This Agreement and all of the provisions hereof shall be binding
upon and insure to the benefit of the parties hereto and their respective successors and permitted assigns and, except as otherwise
expressly provided herein, neither this Agreement, nor any of the rights, interests or obligations hereunder shall be assigned
by either of the parties hereto without the prior written consent of the other party.

 

XIII.      Notices

 

Any and all notices, requests and other communications required
or permitted hereunder shall be in writing, registered mail or by facsimile, to each of the parties at the addresses set forth
above or the numbers set forth below:

 

	The Director:	David G. Schmidt
	 	 
	ApolloMed:	Apollo Medical Holdings, Inc.
	 	700 N. Brand Blvd, Suite 220
	 	Glendale, CA  91203

 

Any such notice shall be deemed given when received and notice
given by registered mail shall be considered to have been given on the tenth (10th) day after having been sent in the manner provided
for above.

 

XIV.      Survival of Obligations

 

Notwithstanding the expiration of termination of this Agreement,
neither party hereto shall be released hereunder from any liability or obligation to the other which has already accrued as of
the time of such expiration or termination (including, without limitation, ApolloMed’s obligation to make any fees and expense
payments required pursuant to Section IV and/or ApolloMed’s indemnification and insurance obligations set forth in Section
V hereof) or which thereafter might accrue in respect of any act or omission of such party prior to such expiration or termination.

 

XV.      Attorneys’ Fees

 

If any legal action or other proceeding is brought for the enforcement
of this Agreement, or because of a dispute, breach or default in connection with any of the provisions hereof, the successful or
prevailing party (including a party successful or prevailing in defense) shall be entitled to recover its actual attorneys’
fees and other costs incurred in that action or proceeding, in addition to any other relief to which it may be entitled.

 

    	4

    	 

    

 

XV.      Severability

 

Any provision of this Agreement which is determined to be invalid
or unenforceable shall not affect the remainder of this Agreement, which shall remain in effect as though the invalid or unenforceable
provision had not been included herein, unless the removal of the invalid or unenforceable provision would substantially defeat
the intent, purpose or spirit of this Agreement.

 

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

 

	Director:	 	Apollo Medical Holdings, Inc.:
	/s/ DAVID SCHMIDT	 	WARREN HOSSEINION, M.D.
	
        Signature
	 	
        Signature

	David Schmidt	 	Warren Hosseinion, M.D.
	
        Print Name
	 	
        Warren Hosseinion, M.D. - CEO

 

    	5

    	 

    

 

EXHIBIT PROPRIETARY INFORMATION AGREEMENT

 

THIS BOARD OF DIRECTORS PROPRIETARY INFORMATION AGREEMENT
(“Agreement”) is made and entered into this ___ day of May, 2013 by and between APOLLO MEDICAL HOLDINGS, INC.,
a Delaware corporation (“ApolloMed”), and David G. Schmidt (the “Director”).

 

RECITALS

 

WHEREAS, the Director has been elected to serve on the Board
of Directors of ApolloMed;

 

WHEREAS, the parties desire to assure the confidential status
of the information which may be disclosed by ApolloMed to the Director in connection with the Director serving on ApolloMed’s
Board of Directors;

 

NOW THEREFORE, in reliance upon and in consideration of the
following undertaking, the parties agree as follows:

 

AGREEMENT

 

1.      
Subject to the limitations set forth in Paragraph 2, all information disclosed by ApolloMed to the Director shall be deemed to
be "Proprietary Information".  In particular, Proprietary Information shall be deemed to include any information,
process, technique, algorithm, program, design, drawing, formula or test data relating to any research project, work in process,
future development, engineering, manufacturing, marketing, servicing, financing or personnel matter relating to ApolloMed, its
present or future products, sales, suppliers, customers, employees, investors, or business, whether or oral, written, graphic or
electronic form.

 

2.      
The term "Proprietary Information" shall not be deemed to include the following information: (i) information which is
now, or hereafter becomes, through no breach of this Agreement on the part of the Director, generally known or available to the
public; (ii) is known by the Director at the time of receiving such information; (iii) is hereafter furnished to the Director by
a third party, as a matter of right and without restriction on disclosure; or (iv) is the subject of a written permission to disclose
provided by ApolloMed.

 

3.      
The Director shall maintain in trust and confidence and not disclose to any third party or use for any unauthorized purpose any
Proprietary Information received from ApolloMed.  The Director may use such Proprietary Information only to the extent required
to accomplish the purposes of his position as a Director of ApolloMed.  The Director shall not use Proprietary Information
for any purpose or in any manner which would constitute a violation of any laws or regulations, including without limitation the
export control laws of the United States.  No other rights of licenses to trademarks, inventions, copyrights, or patents are
implied or granted under this Agreement.

 

4.      
Proprietary Information supplied shall not be reproduced in any form except as required to accomplish the intent of this Agreement.

 

5.      
The Director represents and warrants that he shall protect the Proprietary Information received with at least the same degree of
care used to protect his own Proprietary Information from unauthorized use or disclosure.

 

6.      
All Proprietary Information (including all copies thereof) shall remain in the property of ApolloMed, and shall be returned to
ApolloMed (or destroyed) after the Director's need for it has expired, or upon request of ApolloMed, and in any event, upon the
termination of that certain Board of Directors Agreement, of even date herewith, between ApolloMed and the Director (the “Director
Agreement”).

 

7.      
Notwithstanding any other provision of this Agreement, disclosure of Proprietary Information shall not be precluded if such disclosure:

 

(a)   is in response to a valid order of a court or
other governmental body of the United States or any political subdivision thereof; provided, however, that the Director shall first
have given ApolloMed notice of the Director’s receipt of such order and ApolloMed shall have had an opportunity to obtain
a protective order requiring that the Proprietary Information so disclosed be used only for the purpose for which the order was
issued;

 

(b)   is otherwise required by law; or

 

(c)   is otherwise necessary to establish rights or
enforce obligations under this Agreement, but only to the extent that any such disclosure is necessary.

 

    	6

    	 

    

 

8.      
Subject to the terms of this Paragraph, this Agreement shall continue in full force and effect during the term of the Director
Agreement. This Agreement may be terminated at any time upon thirty (30) days written notice to the other party.  The termination
of this Agreement shall not relieve the Director of the obligations imposed by Paragraphs 3, 4, 5 and 11 of this Agreement with
respect to Proprietary information disclosed prior to the effective date of such termination and the provisions of these Paragraphs
shall survive the termination of this Agreement for a period of eighteen (18) months from the date of such termination.

 

9.     This Agreement
shall be governed by the laws of the State of California as those laws are applied to contracts entered into and to be performed
entirely in California by California residents.

 

10.      This
Agreement contains the final, complete and exclusive agreement of the parties relative to the subject matter hereof and may not
be changed, modified, amended or supplemented except by a written instrument signed by both parties.

 

11.      Each
party hereby acknowledges and agrees that in the event of any breach of this Agreement by the Director, including, without limitation,
an actual or threatened disclosure of Proprietary Information without the prior express written consent of ApolloMed, ApolloMed
will suffer an irreparable injury, such that no remedy at law will afford it adequate protection against, or appropriate compensation
for, such injury.  Accordingly, each party hereby agrees that ApolloMed shall be entitled to specific performance of the Director's
obligations under this Agreement, as well as such further injunctive relief as may be granted by a court of competent jurisdiction.

 

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

 

	Director:	 	Apollo Medical Holdings, Inc.:
	 	 	 
	
        Signature
	 	
        Signature

	 	 	 
	
        Print Name
	 	
        Warren Hosseinion, M.D. - CEO

 

    	7

    	 

    

 

EXHIBIT B

INDEMNIFICATION
AGREEMENT

 

INDEMNIFICATION AGREEMENT (this “Agreement”)
dated as of October 15th, 2012, by and among APOLLO MEDICAL HOLDINGS, INC., a Delaware corporation (the “Company”)
and the indemnitees listed on the signature pages hereto (individually, as “Indemnitee” and, collectively, the “Indemnitees”).

 

RECITALS

 

A.           The
Company and Indemnitees recognize the continued difficulty in obtaining liability insurance for its directors, officers, employees,
stockholders, controlling persons, agents and fiduciaries, the significant increases in the cost of such insurance and the general
reductions in the coverage of such insurance.

 

B.           The
Company and Indemnitees further recognize the substantial increase in corporate litigation in general, which subjects directors,
officers, employees, controlling persons, stockholders, agents and fiduciaries to expensive litigation risks at the same time as
the availability and coverage of liability insurance has been severely limited.

 

C.           The
Indemnitees do not regard the current protection available as adequate under the present circumstances, and Indemnitees and other
directors, officers, employees, stockholders, controlling persons, agents and fiduciaries of the Company may not be willing to
serve in such capacities without additional protection.

 

D.           The
Company (i) desires to attract and retain highly qualified individuals and entities, such as Indemnitees, to serve the Company
and, in part, in order to induce each Indemnitee to be involved with the Company and (ii) wishes to provide for the indemnification
and advancing of expenses to each Indemnitee to the maximum extent permitted by law.

 

E.           In
view of the considerations set forth above, the Company desires that each Indemnitee be indemnified by the Company as set forth
herein.

 

NOW, THEREFORE, the Company and each Indemnitee
hereby agree as follows:

 

    	8

    	 

    

 

1.          Indemnification

 

a.           Indemnification
of Expenses. The Company shall indemnify and hold harmless each Indemnitee (including its respective directors, officers,
partners, former partners, members, former members, employees, agents and spouse, as applicable) and each person who controls
any of them or who may be liable within the meaning of Section 15 of the Securities Act of 1933, as amended (the “Securities
Act”), or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to the fullest
extent permitted by law if such Indemnitee was or is or becomes a party to or witness or other participant in, or is threatened
to be made a party to or witness or other participant in, any threatened, pending or completed action, suit, proceeding or alternative
dispute resolution mechanism, or any hearing, inquiry or investigation that such Indemnitee believes might lead to the institution
of any such action, suit, proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, investigative
or other (hereinafter a “Claim”) by reason of (or arising in part or in whole out of) any event or occurrence related
to the fact that Indemnitee is or was or may be deemed a director, officer, stockholder, employee, controlling person, agent or
fiduciary of the Company, or any subsidiary of the Company, or is or was or may be deemed to be serving at the request of the
Company as a director, officer, stockholder, employee, controlling person, agent or fiduciary of another corporation, partnership,
limited liability company, joint venture, trust or other enterprise, or by reason of any action or inaction on the part of such
Indemnitee while serving in such capacity including, without limitation, any and all losses, claims, damages, expenses and liabilities,
joint or several (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement
of, any action, suit, proceeding or any claim asserted) under the Securities Act, the Exchange Act or other federal or state statutory
law or regulation, at common law or otherwise or which relate directly or indirectly to the registration, purchase, sale or ownership
of any securities of the Company or to any fiduciary obligation owed with respect thereto or as a direct or indirect result of
any Claim made by any stockholder of the Company against an Indemnitee and arising out of or related to any round of financing
of the Company (including but not limited to Claims regarding non-participation, or non-pro rata participation, in such round
by such stockholder), or made by a third party against an Indemnitee based on any misstatement or omission of a material fact
by the Company in violation of any duty of disclosure imposed on the Company by federal or state securities or common laws (hereinafter
an “Indemnification Event”) against any and all expenses (including attorneys’ fees and all other costs, expenses
and obligations incurred in connection with investigating, defending a witness in or participating in (including on appeal), or
preparing to defend, be a witness in or participate in, any such action, suit, proceeding, alternative dispute resolution mechanism,
hearing, inquiry or investigation), judgments, fines, penalties and amounts paid in settlement (if, and only if, such settlement
is approved in advance by the Company, which approval shall not be unreasonably withheld) of such Claim and any federal, state,
local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement
(collectively, hereinafter “Expenses”), including all interest, assessments and other charges paid or payable in connection
with or in respect of such Expenses. Such payment of Expenses shall be made by the Company as soon as practicable but in any event
no later than ten (10) days after written demand by the Indemnitee therefor is presented to the Company.

 

b.           Reviewing
Party. Notwithstanding the foregoing, (i) the obligations of the Company under Section 1(a) shall be subject to the condition
that the Reviewing Party (as described in Section 10(e) hereof) shall not have determined (in a written opinion, in any case in
which the Independent Legal Counsel referred to in Section 1(e) hereof is involved) that Indemnitee would not be permitted to
be indemnified under applicable law, and (ii) each Indemnitee acknowledges and agrees that the obligation of the Company to make
an advance payment of Expenses to Indemnitee pursuant to Section 2(a) (an “Expense Advance”) shall be subject to the
condition that, if, when and to the extent that the Reviewing Party determines that Indemnitee would not be permitted to be so
indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse
the Company) for all such amounts theretofore paid; provided, however, that if Indemnitee has commenced or thereafter commences
legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should be indemnified under applicable
law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law
shall not be binding and Indemnitee shall not be required to reimburse the Company for any Expense Advance until a final judicial
determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). Indemnitee’s
obligation to reimburse the Company for any Expense Advance shall be unsecured and no interest shall be charged thereon. If there
has not been a Change in Control (as defined in Section 10(c) hereof), the Reviewing Party shall be selected by the Board of Directors,
and if there has been such a Change in Control (other than a Change in Control which has been approved by a majority of the Company’s
Board of Directors who were directors immediately prior to such Change in Control), the Reviewing Party shall be the Independent
Legal Counsel referred to in Section 1(e) hereof. If there has been no determination by the Reviewing Party or if the Reviewing
Party determines that Indemnitee substantively would not be permitted to be indemnified in whole or in part under applicable law,
Indemnitee shall have the right to commence litigation seeking an initial determination by the court or challenging any such determination
by the Reviewing Party or any aspect thereof, including the legal or factual bases therefor, and the Company hereby consents to
service of process and to appear in any such proceeding. Any determination by the Reviewing Party otherwise shall be conclusive
and binding on the Company and Indemnitee.

 

    	9

    	 

    

 

c.           Contribution.
If the indemnification provided for in Section 1(a) above for any reason is held by a court of competent jurisdiction to be unavailable
to an Indemnitee in respect of any losses, claims, damages, expenses or liabilities referred to therein, then the Company, in
lieu of indemnifying such Indemnitee thereunder, shall contribute to the amount paid or payable by such Indemnitee as a result
of such losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits
received by the Company and the Indemnitee, or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company and the Indemnitee in connection with the action or inaction which resulted in such losses, claims,
damages, expenses or liabilities, as well as any other relevant equitable considerations. In connection with the registration
of the Company’s securities, the relative benefits received by the Company and the Indemnitee shall be deemed to be in the
same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the
Indemnitee, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the aggregate public
offering price of the securities so offered. The relative fault of the Company and the Indemnitee shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company or the Indemnitee and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

The Company and the Indemnitee agree that
it would not be just and equitable if contribution pursuant to this Section 1(c) were determined by pro rata or per capita allocation
or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately
preceding paragraph. In connection with the registration of the Company’s securities, in no event shall Indemnitee be required
to contribute any amount under this Section 1(c) in excess of the lesser of (i) that proportion of the total of such losses, claims,
damages or liabilities indemnified against equal to the proportion of the total securities sold under such registration statement
which is being sold by such Indemnitee or (ii) the proceeds received by such Indemnitee from its sale of securities under such
registration statement. No person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any person who was not found guilty of such fraudulent misrepresentation.

 

d.           Survival
Regardless of Investigation. The indemnification and contribution provided for in this Section 1 will remain in full force
and effect regardless of any investigation made by or on behalf of the Indemnitee or any officer, director, employee, agent or
controlling person of the Indemnitee.

 

e.           Change
in Control. The Company agrees that if there is a Change in Control of the Company (other than a Change in Control which has
been approved by a majority of the Company’s Board of Directors who were directors immediately prior to such Change in Control)
then, with respect to all matters thereafter arising concerning the rights of Indemnitee to payments of Expenses under this Agreement
or any other agreement or under the Company’s Certificate of Incorporation, as amended (the “Certificate”),
or Bylaws as now or hereafter in effect, Independent Legal Counsel (as defined in Section 10(d) hereof) shall be selected by the
Indemnitee and approved by the Company (which approval shall not be unreasonably withheld). Such counsel, among other things,
shall render its written opinion to the Company and Indemnitee as to whether and to what extent Indemnitee would be permitted
to be indemnified under applicable law. The Company agrees to abide by such opinion and to pay the reasonable fees of the Independent
Legal Counsel referred to above and to fully indemnify such counsel against any and all expenses (including attorneys’ fees),
claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

f.            Mandatory
Payment of Expenses. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful
on the merits or otherwise, including, without limitation, the dismissal of an action without prejudice, in the defense of any
action, suit, proceeding, inquiry or investigation referred to in Section 1(a) hereof or in the defense of any claim, issue or
matter therein, each Indemnitee shall be indemnified against all Expenses incurred by such Indemnitee in connection herewith.

 

    	10

    	 

    

 

2.          Expenses;
Indemnification Procedure.

 

a.           Advancement
of Expenses. The Company shall advance all Expenses incurred by Indemnitee. The advances to be made hereunder shall be paid
by the Company to Indemnitee as soon as practicable but in any event no later than fifteen (15) days after written demand by such
Indemnitee therefor to the Company.

 

b.           Notice/Cooperation
by Indemnitee. Indemnitee shall give the Company notice as soon as practicable of any Claim made against Indemnitee for which
indemnification will or could be sought under this Agreement. Notice to the Company shall be directed to the Chief Executive Officer
of the Company at the address shown on the signature page of this Agreement (or such other address as the Company shall designate
in writing to Indemnitee).

 

c.           No
Presumptions; Burden of Proof. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create
a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law. In addition, neither the failure of the Reviewing Party to
have made a determination as to whether Indemnitee has met any particular standard of conduct or had any particular belief, nor
an actual determination by the Reviewing Party that Indemnitee has not met such standard of conduct or did not have such belief,
prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination that Indemnitee should be indemnified
under applicable law, shall be a defense to Indemnitee’s claim or create a presumption that Indemnitee has not met any particular
standard of conduct or did not have any particular belief. In connection with any determination by the Reviewing Party or otherwise
as to whether Indemnitee is entitled to be indemnified hereunder, the burden of proof shall be on the Company to establish that
Indemnitee is not so entitled.

 

d.           Notice
to Insurers. If, at the time of the receipt by the Company of a notice of a Claim pursuant to Section 2(b) hereof, the Company
has liability insurance in effect which may cover such Claim, the Company shall give prompt written notice of the commencement
of such Claim to the insurers in accordance with the procedures set forth in each of the policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result
of such action, suit, proceeding, inquiry or investigation in accordance with the terms of such policies.

 

e.           Selection
of Counsel. In the event the Company shall be obligated hereunder to pay the Expenses of any Claim, the Company shall be entitled
to assume the defense of such Claim, with counsel reasonably approved by the applicable Indemnitee, upon the delivery to such
Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by the Indemnitee
and the retention of such counsel by the Company, the Company will not be liable to such Indemnitee under this Agreement for any
fees of counsel subsequently incurred by such Indemnitee with respect to the same Claim; provided that, (i) the Indemnitee shall
have the right to employ such Indemnitee’s counsel in any such Claim at the Indemnitee’s expense; (ii) the Indemnitee
shall have the right to employ its own counsel in connection with any such proceeding, at the expense of the Company, if such
counsel serves in a review, observer, advice and counseling capacity and does not otherwise materially control or participate
in the defense of such proceeding; and (iii) if (A) the employment of counsel by the Indemnitee has been previously authorized
by the Company, (B) such Indemnitee shall have reasonably concluded that there is a conflict of interest between the Company and
such Indemnitee in the conduct of any such defense, or (C) the Company shall not continue to retain such counsel to defend such
Claim, then the fees and expenses of the Indemnitee’s counsel shall be at the expense of the Company.

 

3.          Additional
Indemnification Rights; Nonexclusivity.

 

a.           Scope.
The Company hereby agrees to indemnify Indemnitee to the fullest extent permitted by law, even if such indemnification is not
specifically authorized by the other provisions of this Agreement or any other agreement, the Certificate, the Company’s
Bylaws or by statute. In the event of any change after the date of this Agreement in any applicable law, statute or rule which
expands the right of a Delaware corporation to indemnify a member of its Board of Directors or an officer, stockholder, employee,
controlling person, agent or fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits afforded by such change. In the event of any change in any applicable law, statute or rule which narrows the
right of a Delaware corporation to indemnify a member of its Board of Directors or an officer, employee, agent or fiduciary, such
change, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect
on this Agreement or the parties’ rights and obligations hereunder except as set forth in Section 8(a) hereof.

 

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b.           Nonexclusivity.
Notwithstanding anything in this Agreement, the indemnification provided by this Agreement shall be in addition to any rights
to which Indemnitee may be entitled under the Certificate, the Company’s Bylaws, any agreement, any vote of stockholders
or disinterested directors, the laws of the State of Delaware, or otherwise. Notwithstanding anything in this Agreement, the indemnification
provided under this Agreement shall continue as to each Indemnitee for any action such Indemnitee took or did not take while serving
in an indemnified capacity even though the Indemnitee may have ceased to serve in such capacity and such indemnification shall
inure to the benefit of each Indemnitee from and after Indemnitee’s first day of service as a director with the Company
or affiliation with a director from and after the date such director commences services as a director with the Company.

 

4.          No
Duplication of Payments. The Company shall not be liable under this Agreement to make any payment in connection with any Claim
made against any Indemnitee to the extent such Indemnitee has otherwise actually received payment (under any insurance policy,
Certificate, Bylaws or otherwise) of the amounts otherwise indemnifiable hereunder.

 

5.          Partial
Indemnification. If any Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for
any portion of Expenses incurred in connection with any Claim, but not, however, for all of the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion of such Expenses to which such Indemnitee is entitled.

 

6.          Mutual
Acknowledgement. The Company and each Indemnitee acknowledge that in certain instances, Federal law or applicable public policy
may prohibit the Company from indemnifying its directors, officers, employees, controlling persons, agents or fiduciaries under
this Agreement or otherwise.

 

7.          Liability
Insurance. During any period of time any Indemnitee is entitled to indemnification rights under this Agreement, the Company
shall maintain liability insurance applicable to directors, officers, employees, control persons, agents or fiduciaries, each
Indemnitee shall be covered by such policies in such a manner as to provide Indemnitee the same rights and benefits as are accorded
to the most favorably insured of the Company’s directors, if such Indemnitee is a director, or of the Company’s officers,
if such Indemnitee is not a director of the Company but is an officer; or of the Company’s key employees, controlling persons,
agents or fiduciaries, if such Indemnitee is not an officer or director but is a key employee, agent, control person, or fiduciary.
Said liability insurance shall provide coverage amounts of no less than those specified in Schedule A attached hereto and be held
with an insurance carrier which is the Board of Directors of the Company believes is of financial sound condition.

 

8.          Exceptions.
Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

 

a.           Claims
Under Section 16(b). To indemnify any Indemnitee for expenses and the payment of profits arising from the purchase and sale by
such Indemnitee of securities in violation of Section 16(b) of the Exchange Act or any similar successor statute;

 

b.           Unlawful
Indemnification. To indemnify an Indemnitee if a final decision by a court having jurisdiction in the matter shall determine that
such indemnification is not lawful;

 

c.           Fraud.
To indemnify an Indemnitee if a final decision by a court having jurisdiction in the matter shall determine that the Indemnitee
has committed fraud on the Company; or

 

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d.           Insurance.
To indemnify any Indemnitee for which payment is actually and fully made to Indemnitee under a valid and collectible insurance
policy.

 

9.          Period
of Limitations. No legal action shall be brought and no cause of action shall be asserted by or in the right of the Company
against any Indemnitee, any Indemnitee’s estate, spouse, heirs, executors or personal or legal representatives after the
expiration of five (5) years from the date of accrual of such cause of action, and any claim or cause of action of the Company
shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such five (5) year period;
provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter
period shall govern.

 

10.         Construction
of Certain Phrases.

 

a.           For
purposes of this Agreement, references to the “Company” shall include, in addition to the resulting corporation, any
constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its directors, officers, employees, agents or fiduciaries,
so that if Indemnitee is or was or may be deemed a director, officer, employee, agent, control person, or fiduciary of such constituent
corporation, or is or was or may be deemed to be serving at the request of such constituent corporation as a director, officer,
employee, control person, agent or fiduciary of another corporation, partnership, joint venture, employee benefit plan, trust or
other enterprise, each Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting
or surviving corporation as each Indemnitee would have with respect to such constituent corporation if its separate existence had
continued.

 

b.           For
purposes of this Agreement, references to “other enterprises” shall include employee benefit plans; references to “fines”
shall include any excise taxes assessed on any Indemnitee with respect to an employee benefit plan; and references to “serving
at the request of the Company” shall include any service as a director, officer, employee, agent or fiduciary of the Company
which imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary with respect to an employee
benefit plan, its participants or its beneficiaries; and if any Indemnitee acted in good faith and in a manner such Indemnitee
reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, such Indemnitee shall
be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

c.           For
purposes of this Agreement a “Change in Control” shall be deemed to have occurred if (i) any “person” (as
such term is used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), other than a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or a corporation owned directly or indirectly by the stockholders of the Company
in substantially the same proportions as their ownership of stock of the Company, (A) who is or becomes the beneficial owner, directly
or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding
Voting Securities, increases his beneficial ownership of such securities by 5% or more over the percentage so owned by such person,
or (B) becomes the “beneficial owner” (as defined in Rule 13d-3 under said Exchange Act), directly or indirectly, of
securities of the Company representing more than 30% of the total voting power represented by the Company’s then outstanding
Voting Securities, (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute
the Board of Directors of the Company and any new director whose election by the Board of Directors or nomination for election
by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease
for any reason to constitute a majority thereof, or (iii) the stockholders of the Company approve a merger or consolidation of
the Company with any other corporation other than a merger or consolidation which would result in the Voting Securities of the
Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into
Voting Securities of the surviving entity) at least two-thirds (2/3) of the total voting power represented by the Voting Securities
of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the
Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of (in
one transaction or a series of transactions) all or substantially all of the Company’s assets.

 

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d.           For
purposes of this Agreement, “Independent Legal Counsel” shall mean an attorney or firm of attorneys, selected in accordance
with the provisions of Section 1(e) hereof, who shall not have otherwise performed services for the Company or any Indemnitee within
the last three (3) years (other than with respect to matters concerning the right of any Indemnitee under this Agreement, or of
other indemnitees under similar indemnity agreements).

 

e.           For
purposes of this Agreement, a “Reviewing Party” shall mean any appropriate person or body consisting of a member or
members of the Company’s Board of Directors or any other person or body appointed by the Board of Directors who is not a
party to the particular Claim for which Indemnitee is seeking indemnification, or Independent Legal Counsel.

 

f.            For
purposes of this Agreement, “Voting Securities” shall mean any securities of the Company that vote generally in the
election of directors.

 

11.         Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall constitute an original.

 

12.         Binding
Effect; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors, assigns, including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the business and/or assets of the Company, spouses, heirs, and personal and legal representatives.
The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise)
to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and
substance satisfactory to each Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform if no such succession had taken place. This Agreement shall continue
in effect with respect to Claims relating to Indemnifiable Events regardless of whether any Indemnitee continues to serve as a
director, officer, employee, agent, controlling person, or fiduciary of the Company or of any other enterprise, including subsidiaries
of the Company, at the Company’s request.

 

13.         Attorneys’
Fees. In the event that any action is instituted by an Indemnitee under this Agreement or under any liability insurance policies
maintained by the Company to enforce or interpret any of the terms hereof or thereof, any Indemnitee shall be entitled to be paid
all Expenses incurred by such Indemnitee with respect to such action if such Indemnitee is ultimately successful in such action.
In the event of an action instituted by or in the name of the Company under this Agreement to enforce or interpret any of the terms
of this Agreement, the Indemnitee shall be entitled to be paid Expenses incurred by such Indemnitee in defense of such action (including
costs and expenses incurred with respect to Indemnitee counterclaims and cross-claims made in such action), and shall be entitled
to the advancement of Expenses with respect to such action, in each case only to the extent that such Indemnitee is ultimately
successful in such action.

 

14.         Notice.
All notices and other communications required or permitted hereunder shall be in writing, shall be effective when given, and shall
in any event be deemed to be given (a) five (5) days after deposit with the U.S. Postal Service or other applicable postal service,
if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one business day after the business
day of deposit with Federal Express or similar overnight courier, freight prepaid, or (d) one day after the business day of delivery
by facsimile transmission, if deliverable by facsimile transmission, with copy by first class mail, postage prepaid, and shall
be addressed if to Indemnitee, at each Indemnitee’s address as set forth beneath the Indemnitee’s signature to this
Agreement and if to the Company at the address of its principal corporate offices (attention: Secretary) or at such other address
as such party may designate by ten (10) days’ advance written notice to the other party hereto.

 

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15.         Severability.
The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision within
a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable,
and the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent
possible, the provisions of this Agreement (including, without limitations, each portion of this Agreement containing any provision
held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as
to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

 

16.         Choice
of Law. This Agreement shall be governed by and its provisions construed and enforced in accordance with the laws of the State
of Delaware, as applied to contracts between Delaware residents, entered into and to be performed entirely within the State of
Delaware, without regard to the conflict of laws principles thereof.

 

17.         Subrogation.
In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee who shall execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company effectively to bring suit to enforce such rights.

 

18.         Amendment
and Termination. No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is
in writing signed by the parties to be bound thereby. Notice of same shall be provided to all parties hereto. No waiver of any
of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver.

 

19.         Corporate
Authority. The Board of Directors of the Company and its stockholders in accordance with Delaware law have approved the terms
of this Agreement.

 

(Remainder of page intentionally left blank)

 

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IN WITNESS
WHEREOF, the parties hereto have executed this Indemnification Agreement on and as of the day and year first above written.

 

	 	APOLLO MEDICAL HOLDINGS, INC.,
	 	a Delaware corporation
	 	 
	 	By:	 
	 	 
	 	“Indemnitees”
	 	 
	 	David G. Schmidt
	 	 
	 	By:	 	 

 

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