Document:

Exhibit 10.9

 

VOTING
AND REGISTRATION RIGHTS AGREEMENT

 

THIS VOTING AND
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of ________________, 2019,
by and among Apollo Medical Holdings, Inc., a Delaware corporation (the “Company”), and Allied Physicians of
California, A Professional Medical Corporation (“Purchaser”).

 

BACKGROUND STATEMENT

 

This Agreement is made
pursuant to that certain Stock Purchase Agreement, dated as of May 10, 2019 between Company and Purchaser (the “Stock
Purchase Agreement”).

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, and in order to induce Purchaser to enter into the Stock Purchase Agreement, the
parties hereto hereby agree as follows:

 

1.          Defined
Terms. Capitalized terms used and not otherwise defined herein shall have the meanings given such terms in the Stock Purchase
Agreement. As used in this Agreement, the following terms shall have the following respective meanings:

 

“Advice”
shall have the meaning set forth in Section 7(b).

 

“Affiliate”
means, as to any Person, (i) any other Person which directly, or indirectly through one or more intermediaries, controls such Person
or is consolidated with such Person in accordance with generally accepted accounting principles, (ii) any other Person which directly,
or indirectly through one or more intermediaries, is controlled by or is under common control with such Person, or (iii) any other
Person of which such Person owns, directly or indirectly, ten percent (10%) or more of the common stock or equivalent equity interests.
As used herein, the term “control” means possession, directly or indirectly, of the power to direct or cause the direction
of the management or policies of a Person, whether through the ownership of voting securities or otherwise.

 

“Agreement”
shall have the meaning set forth in the Preamble.

 

“Allowable
Grace Period” shall have the meaning set forth in Section 2(d).

 

“Business
Day” means any day of the year on which banks are open for business in Los Angeles, California.

 

“Commission”
means the Securities and Exchange Commission.

 

“Company”
shall have the meaning set forth in the Preamble.

 

“Effective
Date” means the date that the Registration Statement filed pursuant to Section 2(a) is first declared effective
by the Commission.

 

     

     

    

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(b).

 

“FINRA”
shall have the meaning set forth in Section 3(g).

 

“Grace Period”
shall have the meaning set forth in Section 2(d).

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial Registration
Statement” means the initial Registration Statement filed pursuant to Section 2(a) of this Agreement.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“New Registration
Statement” shall have the meaning set forth in Section 2(a).

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

“Registrable
Securities” means any shares of Common Stock issued by the Company pursuant to the Stock Purchase Agreement and any additional
shares of Common Stock or other equity securities of the Company issued by the Company in connection with a stock dividend, stock
split, combination, exchange, reorganization, recapitalization or similar reclassification of the Company’s securities; provided,
that, as to any particular Registrable Securities, such securities shall cease to constitute Registrable Securities when: (x) a
registration statement with respect to the sale of such securities shall have become effective under the Securities Act and such
securities shall have been disposed of thereunder; (y) such securities shall be able to be sold in satisfaction of all applicable
conditions to the resale provisions of Rule 144 under the Securities Act (or any similar provision then in force); or (z) such
securities shall have ceased to be issued and outstanding.

 

“Registration
Statements” means any one or more registration statements of the Company filed under the Securities Act that covers the
resale of any of the Registrable Securities pursuant to the provisions of this Agreement (including without limitation the Initial
Registration Statement, the New Registration Statement and any Remainder Registration Statements), amendments and supplements to
such Registration Statements, including post-effective amendments.

 

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“Remainder
Registration Statement” shall have the meaning set forth in Section 2(a).

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or
any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or
any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or
any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“SEC Guidance”
means (i) any publicly-available guidance, comments or requirements of the Commission staff and (ii) the Securities Act.

 

“Selling Shareholder
Questionnaire” means a questionnaire in the form adopted by the Company from time to time.

 

“Stock Purchase
Agreement” shall have the meaning set forth in the Recitals.

 

“Trading Market”
means the NASDAQ Capital Market or other exchange, trading market or quotation system on which the Common Stock is listed or quoted
for trading on the date in question.

 

		2.	Registration.

 

(a)          If
at any time after the six (6) month anniversary of the date of this Agreement the Company receives a request from Holders of at
least twenty-five percent (25%) of the Registrable Securities then outstanding, the Company shall prepare and file with the Commission
a Registration Statement covering the resale of all of the Registrable Securities not already covered by an existing and effective
Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 or, if Rule 415 is not available for
offers and sales of the Registrable Securities, by such other means of distribution of Registrable Securities as the Company may
reasonably determine (the “Initial Registration Statement”). The Initial Registration Statement shall be on
Form S-3 (except if the Company is then ineligible to register for resale of the Registrable Securities on Form S-3, then the Initial
Registration Statement shall be on Form S-1). Subject to such other limitations as specified in this Agreement, the Company shall
have the right to include its equity securities that are not Registrable Securities, including a primary offering of equity securities
by the Company for its own account or a secondary offering of equity securities owned by the Company’s directors and officers,
in any such Registration Statement. Notwithstanding the registration obligations set forth in this Section 2, in the event
the Commission informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be
registered for resale as a secondary offering on a single registration statement, the Company agrees to promptly (i) inform each
of the Holders thereof and use its commercially reasonable efforts to file amendments to the Initial Registration Statement as
required by the Commission, (ii) remove any and all securities that are not Registrable Securities from such Initial Registration
Statement and/or (iii) withdraw the Initial Registration Statement and file a new registration statement (a “New Registration
Statement”), in either case covering the maximum number of Registrable Securities permitted to be registered by the Commission,
on Form S-3 or such other form available to the Company to register for resale the Registrable Securities as a secondary offering;
provided, that prior to filing such amendment or New Registration Statement, the Company shall be obligated to use its commercially
reasonable efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with
the SEC Guidance. In the event the Company amends the Initial Registration Statement or files a New Registration Statement, as
the case may be, under clauses (i) or (ii) above, the Company will use its commercially reasonable efforts to file with the Commission,
as promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or
more registration statements on Form S-3 or such other form available to the Company to register for resale those Registrable Securities
that were not registered for resale on the Initial Registration Statement, as amended, or the New Registration Statement (the “Remainder
Registration Statements”).

 

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(b)          The
Company shall use its commercially reasonable efforts to cause each Registration Statement to be declared effective by the Commission
as soon as practicable (and will continue to use commercially reasonable efforts thereafter if the applicable Registration Statement
is not effective by such date), and shall use its commercially reasonable efforts to keep each Registration Statement continuously
effective under the Securities Act until the earlier of (i) such time as all of the Registrable Securities covered by such
Registration Statement have been publicly sold by the Holders or (ii) the date that all Registrable Securities covered by such
Registration Statement may be sold by Holders under Rule 144, and without the requirement for the Company to be in compliance with
the current public information requirements under Rule 144(c)(1) (or Rule 144(i)(2), if applicable), as determined by counsel
to the Company pursuant to a written opinion letter to such effect, addressed and reasonably acceptable to the Company’s
transfer agent and the affected Holders (the “Effectiveness Period”).

 

(c)          Each
Holder agrees to furnish to the Company a completed Selling Shareholder Questionnaire not more than seven (7) Trading Days following
the date of the Company’s written request therefor. At least five (5) Trading Days prior to the first anticipated filing
date of a Registration Statement for any registration under this Agreement, the Company will notify each Holder of the information
the Company requires from that Holder other than the information contained in the Selling Shareholder Questionnaire, if any, which
shall be completed and delivered to the Company promptly upon request and, in any event, within three (3) Trading Days prior to
the applicable anticipated filing date. Each Holder further agrees that it shall not be entitled to be named as a selling security
holder in the Registration Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless
such Holder has returned to the Company a completed and signed Selling Shareholder Questionnaire and a response to any requests
for further information as described in the previous sentence. If a Holder of Registrable Securities returns a Selling Shareholder
Questionnaire or a request for further information, in either case, after its respective deadline, the Company shall use its commercially
reasonable efforts at the expense of the Holder who failed to return the Selling Shareholder Questionnaire or to respond for further
information to take such actions as are required to name such Holder as a selling security holder in the Registration Statement
or any pre-effective or post-effective amendment thereto and to include (to the extent not theretofore included) in the Registration
Statement the Registrable Securities identified in such late Selling Shareholder Questionnaire or request for further information.
Each Holder acknowledges and agrees that the information in the Selling Shareholder Questionnaire or request for further information
as described in this Section 2(c) will be used by the Company in the preparation of the Registration Statement and hereby
consents to the inclusion of such information in the Registration Statement.

 

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(d)          Notwithstanding
anything to the contrary herein, at any time after the Registration Statement has been declared effective by the Commission, the
Company may delay the disclosure of material non-public information concerning the Company if the disclosure of such information
at the time is not, in the good faith judgment of the Company, in the best interests of the Company (such delay, a “Grace
Period”); provided, the Company shall promptly (i) notify the Holders in writing of the existence of material
non-public information giving rise to a Grace Period (provided that the Company shall not disclose the content of such material
non-public information to the Holders) or the need to file a post-effective amendment, as applicable, and the date on which such
Grace Period will begin, (ii) use commercially reasonable efforts to terminate a Grace Period as promptly as reasonably practicable,
unless doing so would reasonably be expected to have a material adverse effect on the Company with respect to any proposal or plan
of the Company to effect a merger, acquisition, disposition, financing, reorganization, recapitalization or similar transaction
or any negotiations, discussions or pending proposals with respect thereto, and (iii) notify the Holders in writing of the date
on which the Grace Period ends; provided, further, that no single Grace Period shall exceed ninety (90) consecutive
days, and during any three hundred sixty-five (365) day period, the aggregate of all Grace Periods shall not exceed an aggregate
of one hundred eighty (180) days (each Grace Period complying with this provision being an “Allowable Grace Period”).
For purposes of determining the length of a Grace Period, the Grace Period shall be deemed to begin on and include the date the
Holders receive the notice referred to in clause (i) above and shall end on and include the later of the date the Holders receive
the notice referred to in clause (iii) above and the date referred to in such notice; provided, that no Grace Period shall
be longer than an Allowable Grace Period.

 

		3.	Registration Procedures

 

In connection with the
Company’s registration obligations hereunder:

 

(a)          (i)
the Company shall prepare and file with the Commission such amendments, including post-effective amendments and supplements, to
each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement
continuously effective as to the applicable Registrable Securities for its Effectiveness Period (except during an Allowable Grace
Period); (ii) the Company shall cause the related Prospectus to be amended or supplemented by any required Prospectus supplement
(subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424 (except during an
Allowable Grace Period); (iii) the Company shall respond as promptly as reasonably practicable to any comments received from the
Commission with respect to each Registration Statement or any amendment thereto; and (iv) the Company shall comply with the provisions
of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration
Statement until such time as all of such Registrable Securities shall have been disposed of (subject to the terms of this Agreement)
in accordance with the intended methods of disposition by the Holders thereof as set forth in such Registration Statement as so
amended or in such Prospectus as so supplemented; provided, that Purchaser shall be responsible for the delivery of the
Prospectus to the Persons to whom such Purchaser sells any of the Registrable Securities (including in accordance with Rule 172
under the Securities Act), and Purchaser agrees (and shall cause each other Holder) to dispose of Registrable Securities in compliance
with the plan of distribution described in the Registration Statement and otherwise in compliance with applicable federal and state
securities laws. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant
to this Agreement (including pursuant to this Section 3(a)) by reason of the Company filing a report on Form 10-K, Form
10-Q or Form 8-K or any analogous report under the Exchange Act, the Company shall have incorporated such report by reference into
such Registration Statement, if applicable, or shall file such amendments or supplements with the Commission as soon as reasonably
practicable after the Exchange Act report which created the requirement for the Company to amend or supplement such Registration
Statement was filed.

 

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(b)          the
Company shall use commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order
suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification)
of any of the Registrable Securities for sale in any jurisdiction, as soon as practicable.

 

(c)          the
Company shall, if requested by a Holder, furnish to such Holder, without charge, at least one conformed copy of each Registration
Statement and each amendment thereto and all exhibits to the extent requested by such Holder promptly after the filing of such
documents with the Commission; provided, that the Company may provide a link to, and shall have no obligation to provide
a physical copy of, any such document that is available on the Commission’s EDGAR or successor system.

 

(d)          the
Company shall, prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or
qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from the registration
or qualification) of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions
within the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption
therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable
the disposition in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that
the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject
the Company to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of
process in any such jurisdiction.

 

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(e)          the
Company shall, reasonably cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to the Registration Statement, which certificates shall be free,
to the extent permitted by the Stock Purchase Agreement and under law, of all restrictive legends, and to enable such Registrable
Securities to be in such denominations and registered in such names as any such Holders may reasonably request. Certificates for
Registrable Securities free from all restrictive legends may be transmitted by the transfer agent to a Holder by crediting the
account of such Holder’s prime broker with DTC as directed by such Holder.

 

(f)          subject
to Section 2(c), the Company shall, following the occurrence of any event that the Company determines requires it to file
a supplement or amendment to any Registration Statement, as promptly as reasonably practicable (taking into account the Company’s
good faith assessment of any adverse consequences to the Company and its shareholders of the premature disclosure of such event),
prepare and file a supplement or amendment, including a post-effective amendment, to the affected Registration Statements or a
supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any
other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein (in
the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made),
not misleading.

 

(g)          the
Company may require each selling Holder to furnish to the Company a certified statement as to (i) the number of Securities beneficially
owned by such Holder and any Affiliate thereof, (ii) any Financial Industry Regulatory Authority (“FINRA”) affiliations,
(iii) any natural persons who have the power to vote or dispose of the Common Stock and (iv) any other information as
may be requested by the Commission, FINRA, any state securities commission or any other government or regulatory body with jurisdiction
over the Company or its activities.

 

(h)          the
Company shall cooperate with any registered broker through which a Holder proposes to resell its Registrable Securities in effecting
a filing with FINRA pursuant to FINRA Rule 5110 as requested by any such Holder and the Company shall pay the filing fee required
for the first such filing (but not additional filings) within two (2) Business Days of the request therefore.

 

(i)          as
and when Form S-3 is available to the Company, the Company shall use its commercially reasonable efforts to maintain or achieve
eligibility for use of Form S-3 (or any successor form thereto) for the registration of the resale of Registrable Securities.

 

(j)          if,
at any time after the six (6) month anniversary of the date of this Agreement, at least 85% in interest of the Holders so request
by notice to the Company to sell Registrable Securities pursuant to an underwritten offering, the Company shall enter into a written
underwriting agreement in customary form and substance with the managing underwriter(s) selected by such requesting Holders, provided
that such managing underwriter(s), shall be reasonably acceptable to the Company, and shall take any and all such actions and furnish
and provide all such information, documents and undertakings to such managing underwriter(s) in connection with such underwritten
offering as is customary in connection with such underwritten offerings, and provided further, that the Company and Holders agree
to be bound by such agreements and provisions as are customary in underwriting agreements of the type to be entered in connection
with the sale of Registrable Securities contemplated by such underwritten offering.

 

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(k)          if
the managing underwriter(s) of a proposed underwritten offering of Registrable Securities effected pursuant to Section 2 advise
the Holders requesting to sell Registrable Securities in such underwritten offering in writing that, in their opinion, the number
of securities requested to be included in such offering exceeds the number which can be sold in such offering without being likely
to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities
offered, the securities to be included in such Registration Statement (i) first, shall be allocated, pro rata if necessary, among
the Holders that have requested to sell Registrable Securities in such underwritten offering, (ii) second, and only if all
the securities referred to in clause (i) have been included in such Registration Statement, shall be allocated to any shares that
the Company has requested to sell in such underwritten offering; and (iii) third, and only if all the securities referred to in
clauses (i) and (ii) have been included in such Registration Statement, shall be allocated pro rata among the officers and directors
of the Company that have requested to sell in such underwritten offering.

 

(l)          if
the managing underwriter(s) of a proposed underwritten offering of securities effected pursuant to Section 7(c) advise the
Company in writing that, in their opinion, the number of securities requested to be included in such offering exceeds the number
which can be sold in such offering without being likely to have a significant adverse effect on the price, timing or distribution
of the securities offered or the market for the securities offered, the securities to be included in such Registration Statement
(i) first, shall be allocated to any shares that the Company has requested to sell in such underwritten offering, (ii) second,
and only if all the securities referred to in clause (i) have been included in such Registration Statement, shall be allocated,
pro rata if necessary, among Holders of Registrable Securities that have requested to sell in such underwritten offering, and (iii)
third, and only if all the securities referred to in clauses (i) and (ii) have been included in such Registration Statement, shall
be allocated pro rata among the holders of all other securities that have requested to sell in such underwritten offering.

 

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4.          Registration
Expenses. All fees and expenses incident to the Company’s performance of or compliance with its obligations under this
Agreement shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement.
The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing
fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the Commission
and any Trading Market on which the Common Stock is then listed for trading, (B) with respect to compliance with applicable state
securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Company in connection with
Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities
for investment under the laws of such jurisdictions as requested by the Holders) and (C) if not previously paid by the Company
in connection with an issuer filing, with respect to any filing that may be required to be made by any broker through which a Holder
intends to make sales of Registrable Securities with FINRA pursuant to FINRA Rule 5110, so long as the broker is receiving no more
than a customary brokerage commission in connection with such sale, (ii) printing expenses (including, without limitation,
expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably
requested by the Holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses of the Company, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in
connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible
for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement
(including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties),
the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities
on any securities exchange as required hereunder. In no event shall the Company be responsible for any underwriting, broker or
similar fees, discounts or commissions or stock transfer taxes applicable to any Registered Securities registered by any Holder
or any legal fees or other costs of the Holders. Within ten (10) Trading Days of written notice from the Company, the Holders shall
reimburse the Company for all fees and expenses it incurs hereunder that are otherwise the responsibility of the Holders.

 

		5.	Indemnification.

 

(a)          Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify, defend and hold harmless each
Holder, the officers, directors, agents, brokers, general partners, managing members, managers, Affiliates, employees and investment
advisers of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act) and the officers, directors, general partners, managing members, managers, agents, employees and investment
advisers of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses,
claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and investigation and reasonable
and documented attorneys’ fees) and expenses (collectively, “Losses”), as incurred, that arise out of
or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus
or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating
to any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they
were made) not misleading, or (ii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or
any state securities law, or any rule or regulation thereunder, in connection with the performance of its obligations under this
Agreement, except to the extent that such untrue statements, alleged untrue statements, omissions or alleged omissions are based
solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or
to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities, such Prospectus or such form of Prospectus or in any amendment or supplement thereto, related to the use by a Holder
of an outdated or defective Prospectus after the Company has notified such Holder in writing or electronic mail that the Prospectus
is outdated or defective and prior to the receipt by such Holder of the Advice contemplated and defined in Section 7(b)
below, but only if and to the extent that following the receipt of the Advice the misstatement or omission giving rise to such
Loss would have been corrected. The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding
arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware. Such indemnity
shall remain in full force and effect regardless of any investigation made by or on behalf of an Indemnified Party (as defined
in Section 5(c)) and shall survive the transfer of the Registrable Securities by the Holders.

 

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(b)          Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, arising out of or are based upon any untrue or alleged untrue statement
of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, or any form of prospectus
or supplement thereto, in light of the circumstances under which they were made) not misleading (i) to the extent that such untrue
statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein or (ii) to the extent that such information relates to such Holder or such Holder’s proposed
method of distribution of Registrable Securities, such Prospectus or such form of Prospectus or in any amendment or supplement
thereto, to the extent related to the use by such Holder of an outdated or defective Prospectus after the Company has notified
such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated
in Section 7(b), but only if and to the extent that following the receipt of the Advice the misstatement or omission giving
rise to such Loss would have been corrected. In no event shall the liability of any selling Holder hereunder be greater in amount
than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

 

(c)          Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense
thereof, including the employment of one counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable
and documented fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified
Party to give such written notice within a reasonable time of commencement of any such Proceeding shall not relieve the Indemnifying
Party of its obligations or liabilities pursuant to this Agreement, except to the extent that it shall be finally determined by
a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have
materially and adversely prejudiced the Indemnifying Party in its ability to defend such Proceeding.

 

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An Indemnified Party
shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has
agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of
such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and such Indemnified Party shall have been advised by counsel that a conflict of interest exists if the same counsel were to represent
such Indemnified Party and the Indemnifying Party; provided, that the Indemnifying Party shall not be liable for the fees
and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties. The Indemnifying Party shall
not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably
withheld, delayed or unreasonably conditioned. No Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement
includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

Subject to the terms
of this Agreement, all documented fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section
5(c)) shall be paid to the Indemnified Party, as incurred, within twenty (20) Trading Days of written notice thereof to the
Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion
of such fees and expenses applicable to such actions for which such Indemnified Party is finally judicially determined to not be
entitled to indemnification hereunder.

 

(d)          Contribution.
If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient
to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party,
shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate
to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions
that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party
and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue
or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or
relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a
party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 5(d) was
available to such party in accordance with its terms.

 

    	 	11	 

     

    

 

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the
immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute,
in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of
the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person 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 guilty
of such fraudulent misrepresentation.

 

6.          Restrictions
on Voting. Notwithstanding anything to the contrary in the Certificate of Incorporation of the Company or under applicable
law, to the extent that Purchaser holds Registrable Securities that, together with any other voting securities of the Company,
result in Purchaser having voting power in excess of nine and 99/100 percent (9.99%) of all voting securities of the Company, Purchaser
shall not have the right to vote any Registrable Securities or other voting securities of the Company in excess of such voting
power. Purchaser agrees to abstain from voting any such Registrable Securities or other voting securities of the Company as required
to comply with this Section 6 and further agrees that the Company may refuse to count any such votes.

 

		7.	Miscellaneous.

 

(a)          Compliance.
Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to the Registration
Statement and shall sell the Registrable Securities only in accordance with a method of distribution described in the Registration
Statement.

 

(b)          Discontinued
Disposition. By its acquisition of Registrable Securities, each Holder agrees that, during any Grace Period and upon receipt
of a notice from the Company, such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration
Statement until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus
(as it may have been supplemented or amended) may be resumed. The Company may provide appropriate stop orders to enforce the provisions
of this paragraph.

 

(c)          Holder
Piggyback Rights. If, at any time during the Effectiveness Period but in no event earlier than the six (6) month anniversary
of the date of this Agreement, there is not an effective Registration Statement covering all of the Registrable Securities and
the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each
as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection
with any acquisition of any entity or business or equity securities issuable in connection with the Company’s stock option
or other employee benefit plans, then the Company shall deliver to each Holder a written notice of such determination and, if within
fifteen (15) days after the date of the delivery of such notice, at least 85% in interest of the Holders so request in writing,
the Company shall include in such registration statement all or any part of such Registrable Securities such Holders request to
be registered; provided, however, that the Company shall not be required to register any Registrable Securities pursuant to this
Section 7(c) that are eligible for resale pursuant to Rule 144 (without volume restrictions or current public information
requirements) promulgated by the Commission pursuant to the Securities Act or that are the subject of a then effective Registration
Statement.

 

    	 	12	 

     

    

 

(d)          Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented,
or waived unless the same shall be in writing and signed by the Company and Holders holding at least two-thirds of the then outstanding
Registrable Securities, provided that any party may give a waiver as to itself. Notwithstanding the foregoing, a waiver or consent
to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders and that does not
directly or indirectly affect the rights of other Holders may be given by Holders of all of the Registrable Securities to which
such waiver or consent relates; provided, that the provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the immediately preceding sentence. Notwithstanding the foregoing, if any such amendment,
modification or waiver would adversely affect in any material respect any Holder or group of Holders who have comparable rights
under this Agreement disproportionately to the other Holders having such comparable rights, such amendment, modification, or waiver
shall also require the written consent of the Holder(s) so adversely affected.

 

(e)          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Stock Purchase Agreement.

 

(f)          Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement. The Company may not assign its rights (except
by merger or in connection with another entity acquiring all or substantially all of the Company’s assets) or obligations
hereunder without the prior written consent of all the Holders of the then outstanding Registrable Securities. Notwithstanding
anything in this Agreement to the contrary, Purchaser shall not transfer or assign any of the Registrable Securities, nor any of
its rights hereunder, for a period of six (6) months following the date of this Agreement.  Thereafter, Purchaser may (i)
distribute any of the Registrable Securities to its shareholders, (ii) transfer or assign any of the Registrable Securities in
any sale through underwriters, dealers or agents who sell such Registrable Securities on a national securities exchange, (iii)
transfer or assign any of the Registrable Securities so long as (x) no transferee, after giving effect to such transfer or assignment,
holds voting securities of the Company, including Registrable Securities, having voting power in excess of nine and 99/100 percent
(9.99%) of all voting securities of the Company, or (y) a transferee otherwise enters into an agreement with the Company as a condition
to any such transfer or assignment limiting the voting power of all voting securities of the Company, including Registrable Securities,
held by such transferee, after giving effect to such transfer or assignment, to not more than nine and 99/100 percent (9.99%) of
all voting securities of the Company, and (iv) assign its rights hereunder with respect to the Registrable Securities only to its
shareholders who hold Registrable Securities.

 

    	 	13	 

     

    

 

(g)          Execution
and Counterparts. This Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed
to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign
the same counterpart. In the event that any signature is delivered by facsimile transmission or in electronic form, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or electronic form were the original thereof.

 

(h)          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Stock Purchase Agreement.

 

(i)          Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their good faith reasonable
efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

 

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

 

(k)          Independent
Nature of Holders’ Obligations and Rights. If and to the extent there is more than one Holder under this Agreement, the
obligations of each Holder hereunder shall be several and not joint with the obligations of any other Holder hereunder, and no
Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. Nothing contained
herein or in any other agreement or document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto,
shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of group or entity,
or create a presumption that the Holders are in any way acting in concert or as a group or entity with respect to such obligations
or the transactions contemplated by this Agreement or any other matters, and the Company acknowledges that the Holders are not
acting in concert or as a group, and the Company shall not asset any such claim, with respect to such obligations or transactions.
Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement,
and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose. It is
expressly understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and
not between the Company and the Holders collectively and not between and among Holders.

 

    	 	14	 

     

    

 

(l)          Legend.
Each certificate, instrument, or book entry representing any Registrable Securities shall be notated by the Company with a legend
reading substantially as follows:

 

“THE SHARES REPRESENTED
HEREBY ARE SUBJECT TO A VOTING AND REGISTRATION RIGHTS AGREEMENT, AS MAY BE AMENDED FROM TIME TO TIME, (A COPY OF WHICH MAY BE
OBTAINED UPON WRITTEN REQUEST FROM THE COMPANY), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST
SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF THAT VOTING AND REGISTRATION RIGHTS AGREEMENT, INCLUDING
CERTAIN RESTRICTIONS ON VOTING AND OWNERSHIP SET FORTH THEREIN.”

 

The Company, by its execution
of this Agreement, agrees that it will cause the certificates instruments, or book entry evidencing the Registrable Securities
to be notated with the legend required by this Section 7(l). The parties to this Agreement do hereby agree that the failure
to cause the certificates, instruments, or book entry evidencing the Registrable Securities to be notated with the legend required
by this Section 7(l) shall not affect the validity or enforcement of this Agreement.

 

    	 	15	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered by their respective duly authorized officers as
of the date first above written.

 

	 	APOLLO MEDICAL HOLDINGS, INC.
	 	 
	 	By:	 	         
	 	 	Name: 	 
	 	 	Title:	 
	 	 	 
	 	By:	 	 
	 	 	Name: 	 
	 	 	Title: 	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGES OF ALLIED PHYSICIANS OF CALIFORNIA, A PROFESSIONAL MEDICAL CORPORATION TO FOLLOW]

 

Voting and Registration Rights Agreement
Signature Page (1 of 2)

 

     

     

    

 

	 	ALLIED PHYSICIANS OF CALIFORNIA,
	 	A PROFESSIONAL MEDICAL CORPORATION
	 	 	 
	 	By:	 	 
	 	 	Name: 	 
	 	 	Title:	                     
	 	 	 
	 	ADDRESS FOR NOTICE
	 	 
	 	 
	 	 	 
	 	Attention: 	 	 
	 	 	 	 
	 	Tel:	 	                                       
	 	Fax:	 	 
	 	E-mail:	 	

  

Voting and Registration Rights Agreement
Signature Page (2 of 2)Exhibit 10.1

 

	

    	
Protagonist   Therapeutics Inc
    
	
 
    
	
7707 Gateway   Blvd., Ste 140
    
	
Newark, CA 94560

 

United States of   America
    
	
 
    	
 
    
	
 
    	
Tel + 1 408 649   7370
    
	
 
    	
Fax + 1 649 649   7377
    
	
 
    	
 
    
	
 
    	
www.protagonist-inc.com
    

 

May 7, 2019

 

Richard S. Shames, M.D.

 

Re:          Separation Agreement

 

Dear Richard:

 

This letter sets forth the substance of the separation agreement (the “Agreement”) that Protagonist Therapeutics, Inc. (the “Company”) is offering to you to aid in your employment transition.

 

SEPARATION DATE.  Your last day of work with the Company and your employment termination date will be May 7, 2019 (the “Separation Date”).  On the Separation Date, the Company will pay you all accrued salary, and all accrued and unused vacation earned through the Separation Date, subject to standard payroll deductions and withholdings.  You are entitled to these payments regardless of whether or not you sign this Agreement.

 

SEVERANCE BENEFITS.  In full satisfaction of any obligations for the Company to provide you with severance benefits as stated in the Employee Severance Agreement entered into between you and the Company and dated August 1, 2016, if you timely sign this Agreement, allow the releases set forth herein to become effective, and remain in compliance with all obligations contained in this Agreement, then the Company will provide you with the following severance benefits:

 

Severance Pay.  The Company will pay you the equivalent of nine (9) month of your base salary in effect as of the Separation Date, subject to standard payroll deductions and withholdings (“Severance Pay”).  Your Severance Pay will be paid over time in accordance with the Company’s payroll practices and procedures, beginning as soon as practicable (but not more than thirty (30) days) following the Effective Date, as defined herein.

 

 

Richard S. Shames, M.D.

May 7, 2019

Page 2 of 10

 

Health Care Continuation Coverage.

 

COBRA.  To the extent provided by the federal COBRA law or, if applicable, state insurance laws, and by the Company’s current group health insurance policies, you will be eligible to continue your group health insurance benefits at your own expense.  Later, you may be able to convert to an individual policy through the provider of the Company’s health insurance, if you wish.

 

COBRA Premiums. If you timely elect continued coverage under COBRA, as an additional severance benefit, the Company will pay your COBRA premiums to continue your coverage (including coverage for eligible dependents, if applicable) (“COBRA Premiums”) through the period (the “COBRA Premium Period”) starting on the Separation Date and ending on the earliest to occur of: (i) February 29, 2020; (ii) the date you become eligible for group health insurance coverage through a new employer; or (iii) the date you cease to be eligible for COBRA continuation coverage for any reason, including plan termination. In the event you become covered under another employer’s group health plan or otherwise cease to be eligible for COBRA during the COBRA Premium Period, you must immediately notify the Company in writing of such event.

 

Special Cash Payments in Lieu of COBRA Premiums.  Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the COBRA Premiums without a substantial risk of violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company instead shall pay to you, on the first day of each calendar month, a fully taxable cash payment equal to the applicable COBRA premiums for that month (including premiums for you and your eligible dependents who have elected and remain enrolled in such COBRA coverage), subject to applicable tax withholdings (such amount, the “Special Cash Payment”), for the remainder of the COBRA Premium Period.  You may, but are not obligated to, use such Special Cash Payments toward the cost of COBRA premiums.  On the thirtieth (30th) day following your Separation from Service, the Company will make the first payment to you under this paragraph, in a lump sum, equal to the aggregate Special Cash Payments that the Company would have paid to you through such date had the Special Cash Payments commenced on the first day of the first month following the Separation from Service through such thirtieth (30th) day, with the balance of the Special Cash Payments paid thereafter on the schedule described above

 

SECTION 409A COMPLIANCE.  It is intended that the payments made under this Agreement be exempt from Section 409A of the Internal Revenue Code under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9) and will be implemented and construed in accordance therewith to the greatest extent permitted under applicable law.  However, if the Company determines that the Severance Benefits constitute “deferred compensation” under Section 409A and you are, on the termination of service, a “specified employee” of the Company, as such term is defined in Section 409A, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the Severance Benefits payments will be delayed until the earlier to occur of: (i) the date that is six months and one day after your Separation From Service, or (ii) the date of your death (such applicable date, the “Specified Employee Initial Payment Date”),

 

 

Richard S. Shames, M.D.

May 7, 2019

Page 3 of 10

 

and the Company will (A) pay to you a lump sum amount equal to the sum of the Severance Benefits payments that you would otherwise have received through the Specified Employee Initial Payment Date if the commencement of the payment of the Severance Benefits had not been so delayed pursuant to this Section, and (B) commence paying the balance of the Severance Benefits in accordance with the applicable payment schedules set forth in this Agreement. With respect to any reimbursement or in-kind benefit plans, policies or arrangements of the Company that constitute deferred compensation for purposes of Section 409A, except as otherwise permitted by Section 409A, the following conditions shall be applicable: (i) the amount eligible for reimbursement, or in-kind benefits provided, under any such plan, policy or arrangement in one calendar year may not affect the amount eligible for reimbursement, or in-kind benefits to be provided, under such plan, policy or arrangement in any other calendar year (except that the health and dental plans may impose a limit on the amount that may be reimbursed or paid), (ii) any reimbursement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

INTERNAL REVENUE CODE SECTION 280G.  Notwithstanding anything to the contrary contained in this Agreement, to the extent that any of the payments and benefits provided for under this Agreement or any other agreement or arrangement between you and the Company or its affiliates (collectively, the “Payments”) (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this paragraph, would be subject to the excise tax imposed by Section 4999 of the Code, then the Payments shall be payable either (i) in full or (ii) as to such lesser amount which would result in no portion of such Payments being subject to an excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in your receipt on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code. Unless you and the Company otherwise agree in writing, any determination required under this paragraph shall be made in writing by the Company’s independent public accountants, whose determination shall be conclusive and binding upon you and the Company for all purposes. If a reduction in payments or benefits constituting “parachute payments” is necessary, reduction shall occur in the following order: (A) cash payments shall be reduced first and in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event triggering such excise tax will be the first cash payment to be reduced; and (B) employee benefits shall be reduced last and in reverse chronological order such that the benefit owed on the latest date following the occurrence of the event triggering such excise tax will be the first benefit to be reduced.

 

CONSULTING AGREEMENT.  If you timely sign this Agreement, then the Company will engage you as a consultant under the terms set forth below.

 

(a)           Consulting Period.  You will serve as a consultant to the Company beginning on May 7, 2019, and ending on June 30, 2019 (the “Consulting Period”), unless terminated earlier pursuant to Section 5(j).

 

 

Richard S. Shames, M.D.

May 7, 2019

Page 4 of 10

 

(b)           Consulting Services.  As a consultant, you will be responsible for assisting the Company in any area of your expertise, as reasonably requested by the Company (the “Consulting Services”).  Among other things, you will assist the Company with the following:  providing advisory services to the CEO on matters for which you are knowledgeable.  It is anticipated that you will provide 80 hours of Consulting Services.  You will conduct the Consulting Services at a location of your choosing.  You will exercise the highest degree of professionalism and utilize your expertise and creative talents in performing the Consulting Services.

 

(c)           Consulting Fee.  Provided that you (i) perform the Consulting Services to the Company’s satisfaction (as determined by the Company in its sole discretion), and (ii) comply with your contractual obligations to the Company (including, without limitation, the obligations set forth herein), then the Company will pay you consulting fees equal to $250 per hour.

 

Equity.  During your employment with the Company, you were granted options to purchase shares of the Company’s common stock.  Under the terms of the Plan and your stock option grant, vesting will cease as of the Separation Date and your rights to exercise any vested options shall be as set forth in the applicable stock option grant notice, stock option agreement, and/or the Plan.   To be clear, vesting will not continue during the Consulting Period.  Your options shall continue to be governed by the terms of the applicable grant notices, stock option agreements and the Plan.

 

Tax Treatment.  The Company will not make any withholdings or deductions, and will issue you a form 1099, with respect to any consulting fees paid to you. You will be responsible for all taxes with respect to the consulting fees, and you agree to indemnify, hold harmless and defend the Company from any and all claims, liabilities, damages, taxes, fines or penalties sought or recovered by any governmental entity, including but not limited to the Internal Revenue Service or any state taxing authority, arising out of or in connection with the consulting fees.

 

Independent Contractor Status.  You agree that during the Consulting Period, (i) you will be an independent contractor to the Company and not an employee of the Company, and (ii) the Company will not make payments for state or federal income tax, FICA (social security and Medicare), make unemployment insurance or disability insurance contributions, or obtain workers’ compensation insurance on your behalf.

 

Protection of Information.  You agree that during the Consulting Period and thereafter, you will not use or disclose any confidential or proprietary information or materials of the Company that you obtain or develop in the course of performing consulting services for the Company.  Any and all work product you create in the course of performing consulting services for the Company will be the sole and exclusive property of the Company.  You hereby assign to the Company all right, title, and interest in all inventions, techniques, processes, materials, and other intellectual property developed in the course of performing consulting services for the Company.

 

 

Richard S. Shames, M.D.

May 7, 2019

Page 5 of 10

 

Limitations on Authority.  You will have no responsibilities or authority as a consultant to the Company other than as provided above.  You agree not to represent or purport to represent the Company in any manner whatsoever to any third party except with my prior written consent.

 

Standards of Conduct; Noncompetition.  You agree not to engage in any conduct during the Consulting Period that is detrimental to the interests of the Company.  You further agree during the Consulting Period that you will not, directly or indirectly, as an officer, director, employee, consultant, owner, manager, member, partner, or in any other capacity solicit, perform, or provide, or attempt to perform or provide Conflicting Services in the United States, nor will you assist another person to solicit, perform or provide or attempt to perform or provide Conflicting Services in the United States.  You and the Company agree that for purposes of this Agreement, “Conflicting Services” means any product, service, or process or the research and development thereof, of any person or organization other than the Company that is substantially similar to or competitive with a product, service, or process, including the research and development thereof, of the Company.  Notwithstanding the above, you will not be deemed to be engaged directly or indirectly in any Conflicting Services if you participate in any such business solely as a passive investor in up to one percent (1%) of the equity securities of a company or partnership, the securities of which are publicly traded.

 

Termination of Consulting Period.  Either you or the Company may terminate the Consulting Period, at any time and for any reason, upon ten (10) days’ written notice to the other party.  If not terminated sooner, the Consulting Period will automatically terminate on May 31, 2019.  Upon termination of the Consulting Period by either party, or upon termination of the Consulting Period on May 31, 2019, whichever is sooner, the Company will have no further obligations to you, including any obligation to pay you further consulting fees.

 

OTHER COMPENSATION OR BENEFITS.  You acknowledge that, except as expressly provided in this Agreement, you will not receive any additional compensation, severance or benefits after the Separation Date, with the exception of any vested right you may have under the express terms of a written ERISA-qualified benefit plan (e.g., 401(k) account).

 

EXPENSE REIMBURSEMENTS.  You agree that, within ten (10) days after the Separation Date, you will submit your final documented expense reimbursement statement reflecting all business expenses you incurred through the Separation Date, if any, for which you seek reimbursement.  The Company will reimburse you for these expenses pursuant to its regular business practice.

 

RETURN OF COMPANY PROPERTY.  By no later than the close of business on the Separation Date, you shall return to the Company all Company documents (and all copies thereof, in whole or in part) and other Company property in your possession or control, including, but not limited to: (a) all Company files, computer files and any and all other computer-recorded and electronically-recorded information; (b) all notes, correspondence, email, memoranda, notebooks (including laboratory notebooks), drawings, sketches, blueprints, flow charts, records, reports, studies, analyses, plans, forecasts, compilations of data, agreements, proposals, joint ventures, financial and operational information, legal files and information, 

 

 

Richard S. Shames, M.D.

May 7, 2019

Page 6 of 10

 

information regarding suppliers, research and development information, sales and marketing information and contact lists, personnel information, contact directories or information, and specifications, code, software, databases, computer related information (including but not limited to computer files and email); (c) all tangible property and equipment (including, but not limited to, devices, cellular telephones, facsimile machines, mobile telephones, servers, product samples, sales stock, computer equipment of any kind, and related materials), credit cards, entry cards, identification badges, and keys; and (d) any materials of any kind that contain or embody any proprietary or confidential information of the Company and its affiliated entities (and all reproductions thereof in whole or in part).  You further agree to make a diligent search to locate any such documents, property and information.  In addition, if you have used any personally owned computer, server, or e-mail system to receive, store, review, prepare or transmit any Company confidential or proprietary data, materials or information, then you agree to provide the Company, within seven (7) days after the Effective Date, with a computer-useable copy of all such information and then permanently delete and expunge all such Company confidential or proprietary information from those systems without retaining any copy or reproduction of it in any form, in whole or in part.  You further agree to provide the Company access to your personal system, as requested, to verify that the required copying and/or deletion is completed.  Your timely and full compliance with this Section 8 is a precondition to your receipt of the severance benefits set forth herein.

 

PROPRIETARY INFORMATION OBLIGATIONS.  Both during and after your employment you acknowledge your continuing obligations under your Confidential Information and Invention Assignment Agreement, including your obligations not to use or disclose any confidential or proprietary information of the Company.  A copy of your Confidential Information and Invention Assignment Agreement is attached hereto as Exhibit A.

 

NONDISPARAGEMENT.  You agree not to disparage the Company and its officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them or their business, business reputations or personal reputations; provided that you may respond accurately and fully to any question, inquiry or request for information when required by legal process (e.g., a valid subpoena or other similar compulsion of law) or as part of a government investigation.  In addition, nothing in this provision or this Agreement is intended to prohibit or restrain you in any manner from making disclosures that are protected under the whistleblower provisions of federal or state law or regulation.

 

NO VOLUNTARY ADVERSE ACTION; AND COOPERATION.  You agree that you will not voluntarily provide assistance, information or advice, directly or indirectly (including through agents or attorneys), to any person or entity in connection with any proposed or pending litigation, arbitration, administrative claim, cause of action, or other formal proceeding of any kind brought against the Company, its parent or subsidiary entities, affiliates, officers, directors, employees or agents, nor shall you induce or encourage any person or entity to bring any such claims; provided that you may respond accurately and fully to any question, inquiry or request for information when required by legal process (e.g., a valid subpoena or other similar compulsion of law) or as part of a government investigation.  In addition, you agree to voluntarily cooperate with the Company if you have knowledge of facts relevant to any

 

 

Richard S. Shames, M.D.

May 7, 2019

Page 7 of 10

 

existing or future litigation or arbitration initiated by or filed against the Company by making yourself reasonably available without further compensation for interviews with the Company or its legal counsel, for preparing for and providing deposition testimony, and for preparing for and providing trial testimony.

 

NO ADMISSIONS.  You understand and agree that the promises and payments in consideration of this Agreement shall not be construed to be an admission of any liability or obligation by the Company to you or to any other person, and that the Company makes no such admission.

 

RELEASE OF CLAIMS.

 

(a)           General Release.  In exchange for the consideration provided to you under this Agreement to which you would not otherwise be entitled, you hereby generally and completely release the Company, and its affiliated, related, parent and subsidiary entities,  and its and their current and former directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, insurers, affiliates, and assigns (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to or on the date you sign this Agreement (collectively, the “Released Claims”).

 

(b)           Scope of Release.  The Released Claims include, but are not limited to:  (i) all claims arising out of or in any way related to your employment with the Company, or the termination of that employment; (ii) all claims related to your compensation or benefits from the Company, including salary, bonuses, commissions, vacation, paid time off, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership, equity, or profits interests in the Company; (iii) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (iv) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (v) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (the “ADEA”), the California Labor Code (as amended), and the California Fair Employment and Housing Act (as amended).

 

(c)           ADEA Waiver.  You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the ADEA (“ADEA Waiver”), and that the consideration given for the waiver and release in this Section is in addition to anything of value to which you are already entitled.  You further acknowledge that you have been advised, as required by the ADEA, that:  (i) your waiver and release do not apply to any rights or claims that may arise after the date that you sign this Agreement; (ii) you should consult with an attorney prior to signing this Agreement (although you may choose voluntarily not to do so); (iii) you have twenty-one (21) days to consider this Agreement (although you may choose voluntarily to sign it earlier); (iv) you have seven (7) days following the date you sign this Agreement to revoke the ADEA Waiver (by providing written notice of 

 

 

Richard S. Shames, M.D.

May 7, 2019

Page 8 of 10

 

your revocation to me); and (v) the ADEA Waiver will not be effective until the date upon which the revocation period has expired unexercised, which will be the eighth day after you sign this Agreement (“Effective Date”).  Nevertheless, your general release of claims, except for the ADEA Waiver, is effective immediately, and not revocable.

 

(d)           Section 1542 Waiver.  YOU UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.  In giving the release herein, which includes claims which may be unknown to you at present, you acknowledge that you have read and understand Section 1542 of the California Civil Code, which reads as follows:

 

“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”

 

You hereby expressly waive and relinquish all rights and benefits under that section and any law of any other jurisdiction of similar effect with respect to your release of any unknown or unsuspected claims herein.

 

(e)           Excluded Claims.  Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (i) any rights or claims for indemnification you may have pursuant to any written indemnification agreement with the Company to which you are a party or under applicable law; (ii) any rights which are not waivable as a matter of law; and (iii) any claims for breach of this Agreement.  You hereby represent and warrant that, other than the Excluded Claims, you are not aware of any claims you have or might have against any of the Released Parties that are not included in the Released Claims.  You understand that nothing in this Agreement limits your ability to file a charge or complaint with any Governmental Agency.  While this Agreement does not limit your right to receive an award for information provided to the Securities and Exchange Commission, you understand and agree that, to maximum extent permitted by law, you are otherwise waiving any and all rights you may have to individual relief based on any claims that you have released and any rights you have waived by signing this Agreement.

 

REPRESENTATIONS.  You hereby represent that you have been paid all compensation owed and for all hours worked, have received all the leave and leave benefits and protections for which you are eligible, pursuant to the Family and Medical Leave Act, California Family Rights Act, or otherwise, and have not suffered any on-the-job injury for which you have not already filed a claim.

 

MISCELLANEOUS.  This Agreement, including Exhibit A, constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to the subject matter hereof.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other agreements, promises, warranties or representations concerning its subject matter.  This Agreement may not be modified or amended except in a writing signed by both you and a duly 

 

 

Richard S. Shames, M.D.

May 7, 2019

Page 9 of 10

 

authorized officer of the Company.  This Agreement will bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns.  If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination shall not affect any other provision of this Agreement and the provision in question shall be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible under applicable law.  This Agreement shall be construed and enforced in accordance with the laws of the State of California without regard to conflicts of law principles.  Any ambiguity in this Agreement shall not be construed against either party as the drafter.  Any waiver of a breach of this Agreement, or rights hereunder, shall be in writing and shall not be deemed to be a waiver of any successive breach or rights hereunder.  This Agreement may be executed in counterparts which shall be deemed to be part of one original, and facsimile and signatures transmitted by PDF shall be equivalent to original signatures.

 

If this Agreement is acceptable to you, please sign below and return the original to me within twenty-one (21) days.  The Company’s offer contained herein will automatically expire if we do not receive the fully signed Agreement within this timeframe.

 

I wish you good luck in your future endeavors.

 

Sincerely,

 

 

PROTAGONIST THERAPEUTICS, INC.

 

 

	
By:
    	
/s/ Dinesh Patel
    	
 
    
	
 
    	
Dinesh Patel
    	
 
    
	
 
    	
President &   CEO
    	
 
    

 

Exhibit A — Confidential Information and Invention Assignment Agreement

 

 

ACCEPTED AND AGREED:

 

 

	
/s/ Richard S. Shames,   M.D.
    	
 
    
	
Richard S. Shames, M.D.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
May 10, 2019
    	
 
    
	
Date
    	
 
    

 

 

Richard S. Shames, M.D.

May 7, 2019

Page 10 of 10

 

EXHIBIT A

 

CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT

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