Document:

Exhibit 10.1

 

AMENDMENT NO. 2 TO AGREEMENT AND PLAN
OF MERGER

 

This Amendment No.
2 to Agreement and Plan of Merger (this “Amendment”) is made and entered into as of October 17, 2017 by and
among Apollo Medical Holdings, Inc., a Delaware corporation (“Parent”), Apollo Acquisition Corp., a California
corporation (“Merger Sub”), Network Medical Management, Inc., a California corporation (the “Company”),
and Kenneth Sim, M.D. (the “Shareholders’ Representative”). Parent, Merger Sub, the Company and the Shareholders’
Representative shall sometimes be referred to herein collectively as the “Parties” and individually as a “Party.”
Capitalized terms used herein have the meanings ascribed to them in ‎Article XIII of the Merger Agreement.

 

WHEREAS, Parent, the
Company, Merger Sub and the Shareholders’ Representative are parties to the Agreement and Plan of Merger dated as of December
21, 2016, as amended on March 30, 2017 (the “Merger Agreement”);

 

WHEREAS, Section 12.6
of the Merger Agreement provides that the Merger Agreement may be amended by a written amendment signed by all of the Parties thereto;
and

 

WHEREAS, the Parties
desire to amend the Merger Agreement as set forth below;

 

NOW, THEREFORE, in
consideration of the premises and the mutual promises contained herein and for other good and valuable consideration the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.          Amendment
to Section 1.5(b). Section 1.5(b) of the Merger Agreement is hereby deleted in its entirety.

 

2.          Amendment
to Section 2.1(b)(ii).       Section 2.1(b)(ii) of the Merger Agreement is
hereby amended and restated as follows:

 

“(ii)      Subject
to Sections 2.1(b)(i) and 2.8, each Company Share issued and outstanding immediately prior to the Effective Time
shall be converted into the right to receive such number of fully paid and nonassessable Parent Shares that would result in the
Shareholders having a right to receive (I) an aggregate number of Parent Shares immediately following the Effective Time that represents
eighty-two percent (82%) of the total issued and outstanding Parent Shares immediately following the Effective Time, assuming there
are no Dissenting Shareholder Interests as of the Effective Time (the “Exchange Ratio”), plus (II) an aggregate
of two million five hundred sixty-six thousand six hundred sixty-six (2,566,666) Parent Shares (the “Additional Parent
Shares”), assuming there are no Dissenting Shareholder Interests as of the Effective Time. In addition, each Shareholder
shall be entitled to receive such Shareholder’s Pro Rata Portion of the aggregate of eight hundred fifty thousand (850,000)
warrants of Parent exercisable at eleven dollars ($11.00) per share and the aggregate of nine hundred thousand (900,000) warrants
of Parent exercisable at ten dollars ($10.00) per share. Notwithstanding the foregoing, and for the avoidance of doubt, for purposes
of calculating the Exchange Ratio, the aggregate number of Parent Shares held by the Shareholders immediately following the Effective
Time shall exclude (i) any Parent Shares owned by the Shareholders immediately prior to the Effective Time, (ii) the Additional
Parent Shares and (iii) any Parent Shares issuable to the Shareholders pursuant to the exercise of the Parent Warrants and/or the
Closing Warrant Payment. Notwithstanding the foregoing, and for the avoidance of doubt, for purposes of calculating the Exchange
Ratio, the total number of issued and outstanding Parent Shares immediately following the Effective Time shall exclude four hundred
ninety-nine thousand (499,000) Parent Shares issued or issuable pursuant to the Securities Purchase Agreement dated as of March
30, 2017, between Parent and Alliance Apex, LLC (the “Purchase Agreement”). All such Company Shares, when so
converted, shall no longer be outstanding and shall automatically be cancelled and shall cease to exist, and each holder of a certificate
that immediately prior to the Effective Time represented any such Company Shares (each, a “Certificate”) and
each holder of Company Shares held in book-entry form shall, in each case, cease to have any rights with respect thereto, except
the right to receive such Shareholder’s Pro Rata Portion of the Merger Consideration and any cash in lieu of fractional Parent
Shares to be issued or paid in consideration therefor, and any rights to which holders of Company Shares become entitled in accordance
with Section 3.16.”

 

     

     

    

  

3.          Amendment
to Section 2.3. Section 2.3 of the Merger Agreement is hereby amended and restated as follows:

 

“2.3      Merger
Consideration. Subject to the terms and conditions of this Agreement, the aggregate consideration to be paid by Parent shall
be the Merger Consideration. The “Merger Consideration” is an amount equal to the total of:

 

		·	ninety percent
                                         (90%) of the aggregate number of Parent Shares the Shareholders are entitled to receive
                                         pursuant to Section 2.1(b)(ii) (the “Closing Share Payment”),
                                         plus

 

		·	eight hundred fifty thousand (850,000) warrants of Parent exercisable at eleven dollars ($11.00) per share, plus nine hundred
thousand (900,000) warrants of Parent exercisable at ten dollars ($10.00) per share (collectively, the “Closing Warrant
Payment,” and together with the Closing Share Payment, the “Closing Payment”), which warrants shall
be in substantially the same form as the Series B Parent Warrants, plus

 

		·	the remainder, if any, from the holdback shares (initially, ten percent (10%) of the aggregate number of Parent Shares the
Shareholders are entitled to receive pursuant to Section 2.1(b)(ii) (the “Holdback Shares”)).”

 

4.          Amendment
to Section 3.2(ii).        Section 3.2(ii) of the Merger Agreement is hereby amended
and restated as follows:

 

“(ii)      except
as set forth in Schedule 3.2 attached and except as authorized by the Company Board for issuances, deliveries and/or sales
prior to the Closing of common stock of the Company or options to purchase common stock of the Company which options must be exercised
or cancelled prior to, and cannot be outstanding at, the Closing, issue, deliver, sell, authorize, pledge or otherwise encumber
any shares of capital stock, stock options or any securities convertible into shares of capital stock or other equity, or subscriptions,
rights, warrants or options to acquire any shares of capital stock or other equity or any securities convertible into shares of
capital stock or other equity, or enter into other agreements or commitments of any character obligating the Company to issue any
such shares or convertible securities;”

 

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5.          Amendment
to Section 3.2(x).         Section 3.2(x) of the Merger Agreement is hereby amended
and restated as follows:

 

“(x)       except
as authorized by the Company Board for issuances, deliveries and/or sales prior to the Closing of common stock of the Company or
options to purchase common stock of the Company which options must be exercised or cancelled prior to, and cannot be outstanding
at, the Closing, change its authorized capital structure or authorize for issuance, issue, sell, grant, pledge or dispose of, or
agree or commit to issue, sell, grant, pledge or dispose of (whether through the issuance or granting of options, warrants, commitments,
subscriptions, rights to purchase or otherwise) any stock of any class of the Company or any other securities or equity equivalents;”

 

6.          Amendment
to Section 3.13.         Section 3.13 of the Merger Agreement is hereby amended
to add the following new sentence at the end of such Section:

 

“For the avoidance of doubt,
notwithstanding anything to the contrary in this Agreement, any other agreement, or the governing documents of Parent, the Parties
hereby acknowledge and agree that in no event prior to Closing (or earlier termination of this Agreement in accordance with the
terms hereof) shall Company take any action to cause a dividend or distribution of or take any other action with respect to the
Series A preferred stock and Series B preferred stock of Parent held by Company (the “Preferred Stock”), and
the Preferred Stock shall continue to be held by Company until and through the Effective Time such that the value of the Preferred
Stock shall thereby effectively be relinquished at the Effective Time, if and only if the Closing occurs and the Agreement has
not been terminated, by Company and the Shareholders in exchange for the Merger Consideration.”

 

7.          Amendment
to Section 3.14. Section 3.14 of the Merger Agreement is hereby amended and restated as follows:

 

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“3.14 Working Capital
Loans. The Company shall provide a working capital loan to Parent in the principal amount of Nine Million Dollars ($9,000,000),
which shall be evidenced by a promissory note in substantially the form of Exhibit F attached hereto and shall be convertible
into Parent Shares in accordance with the terms thereof (the “Convertible Note”). Of such amount, (A) Five Million
Dollars ($5,000,000) was previously disbursed to Parent pursuant to a working capital loan evidenced by that certain Promissory
Note dated January 3, 2017 (the “Original Note”) and (B) Four Million Dollars ($4,000,000) will be used for working
capital and shall be funded by wire of immediately available funds to an account designated by Parent on October 17, 2017. Upon
its execution, (i) the Convertible Note shall amend, restate and replace the Original Note, which shall thereupon be canceled together
with the note previously executed by the Company and payable to the Shareholders’ Representative on behalf of the Shareholders
in the principal amount of the Original Note and (ii) the entire outstanding principal balance of the Original Note, all accrued
and unpaid interest thereon, and all other applicable fees, costs and charges, if any, shall be rolled into and become payable
pursuant to the terms of the Convertible Note. For the avoidance of doubt, notwithstanding anything to the contrary in this Agreement,
any other agreement, or the governing documents of Parent, the Parties hereby acknowledge and agree that in no event prior to Closing
(or earlier termination of this Agreement in accordance with the terms hereof) shall Company take any action to cause a dividend
or distribution of or take any other action with respect to the Convertible Note, and the Convertible Note shall continue to be
held by Company until and through the Effective Time such that the value of the Convertible Note shall thereby effectively be relinquished
at the Effective Time, if and only if the Closing occurs and the Agreement has not been terminated, by Company and the Shareholders
in exchange for the Merger Consideration.”

 

8.          Amendment
to Section 3.15. Section 3.15 of the Merger Agreement is hereby amended to delete the words “less the amount of the Working
Capital Loan Amount.”

 

9.          Amendment
to Section 8.1. Section 8.1 of the Merger Agreement is hereby amended and restated as follows:

 

“8.1      Survival.
All representations and warranties and the covenants and agreements (to the extent such covenant or agreement contemplates or requires
performance prior to the Closing) of each of the Parties shall terminate and expire on, and shall cease to have any further force
or effect following, the date which is two (2) years from the Closing Date (the “Expiration Date”); provided,
however, that if at any time prior to the Expiration Date, an Indemnified Party has duly delivered to the applicable Indemnifying
Parties a Claim Notice (satisfying the requirements set forth in Sections 8.4 and 8.5), then the specific indemnification
claim asserted in such Claim Notice shall survive the Expiration Date until such time as such claim is resolved. Each covenant
and agreement requiring performance at or after the Closing, will, in each case, expressly survive Closing in accordance with its
terms, and if no term is specified, then such covenants and agreements shall survive indefinitely following the Effective Time.”

 

10.        Amendment
to Section 9.1(b)(i). Section 9.1(b)(i) of the Merger Agreement is hereby amended by replacing “August 31, 2017”
with “March 31, 2018.”

 

11.        Amendment
to Section 13.1.          Section 13.1 of the Merger Agreement is hereby
amended as follows:

 

		a.	The term “the Convertible Note” is added to
the definition of “Transaction Documents” and replaces the term “the Working Capital Note” in such definition;

 

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		b.	The following definition is added to Section 13.1, inserted
in alphabetical order: ““Convertible Note” has the meaning set forth in Section 3.14”; and

 

		c.	The definitions “Shareholder Note” and “Working
Capital Note” are deleted.

 

12.         Amendment
to Exhibits. The title of Exhibit F of the Merger Agreement is hereby amended to be “Convertible Note.”

 

13.         Effect
of Amendment. Except as expressly set forth in this Amendment, the Merger Agreement remains in full force and effect.

 

14.         Governing
Law; Exclusive Jurisdiction. All disputes, claims or controversies arising out of or relating to this Amendment shall be construed
in accordance with and governed by the internal laws of the State of California without giving effect to any choice or conflict
of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application of laws
of any jurisdiction other than those of the State of California.

 

15.         Execution
of Amendment; Counterparts; Electronic Signature. This Amendment may be executed in multiple counterparts, each of which shall
be deemed an original and all of which shall constitute one and the same instrument. The exchange of copies of this Amendment and
signature pages by facsimile transmission, by electronic mail in portable document format form or by any other electronic means
intended to preserve the original graphic and pictorial appearance of a document, or by combination of such means, shall constitute
effective execution and delivery of this Amendment as to the Parties and may be used in lieu of the original Amendment for all
purposes.

 

16.         Modification.
This Amendment may not be amended except by a written amendment signed by all of the Parties hereto.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
each of the parties hereto has caused this Amendment No. 2 to Agreement and Plan of Merger to be duly executed on its behalf as
of the day and year first above written.

 

	PARENT:	Apollo Medical Holdings, Inc., a Delaware

corporation
	 	 
	 	By:	/s/
    Warren Hosseinion
	 	Name:	Warren Hosseinion
	 	Title:	Chief Executive Officer
	 	 
	MERGER SUB:	Apollo Acquisition Corp., a California corporation
	 	 
	 	By:	/s/
    Warren Hosseinion
	 	Name:	Warren Hosseinion
	 	Title:	Chief Executive Officer
	 	 
	THE COMPANY:	Network Medical Management, Inc., a

California corporation
	 	 
	 	By:	/s/
    Thomas Lam
	 	Name:	Thomas Lam
	 	Title:	Chief Executive Officer
	 	 
	SHAREHOLDERS’

REPRESENTATIVE:	/s/ Kenneth Sim
	 	Kenneth Sim, M.D.Exhibit 10.2

 

AMENDMENT TO CONVERTIBLE PROMISSORY NOTE

 

This Amendment to Convertible
Promissory Note (this “Amendment”) is made and entered into as of October 16, 2017, by and between Apollo Medical Holdings,
Inc., a Delaware corporation (“AMH”), and Alliance Apex LLC, a California limited liability company (“Alliance
Apex”).

 

WHEREAS, Alliance Apex
extended a loan to AMH in the original principal amount of Four Million Nine Hundred Ninety Thousand Dollars ($4,990,000), as
evidenced by a certain Convertible Promissory Note dated March 30, 2017, between AMH and Alliance Apex (the “Note”).
Unless otherwise defined herein, capitalized terms used herein have the meanings ascribed to them in ‎the Note.

 

WHEREAS, the Parties desire
to amend the Note by extending the Maturity Date thereof as set forth below.

 

NOW, THEREFORE, in consideration
of the premises and the mutual promises contained herein and for other good and valuable consideration the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Extension
of Maturity Date. The reference to “December 31, 2017” in the definition of “Maturity Date” in the
opening paragraph of the Note is hereby deleted and replaced with “March 31, 2018”.

 

2.          Effect
of Amendment. Except as expressly set forth in this Amendment, the Note remains in full force and effect.

 

3.          Execution
of Amendment; Counterparts; Electronic Signature. This Amendment may be executed in multiple counterparts, each of which shall
be deemed an original and all of which shall constitute one and the same instrument. The exchange of copies of this Amendment and
signature pages by facsimile transmission, by electronic mail in portable document format form or by any other electronic means
intended to preserve the original graphic and pictorial appearance of a document, or by combination of such means, shall constitute
effective execution and delivery of this Amendment as to the parties hereto and may be used in lieu of the original Amendment for
all purposes.

 

4.          Modification.
This Amendment may not be amended except by a written amendment signed by all of the parties hereto.

 

IN WITNESS WHEREOF, each
of the parties hereto has caused this Amendment to be duly executed on its behalf as of the day and year first above written.

 

	“AMH”:	 	“Alliance Apex”:
	 	 	 
	APOLLO MEDICAL HOLDINGS, INC.	 	ALLIANCE APEX, LLC
	 	 	 
	By:	/s/ Warren Hosseinion	 	By: 	/s/ Linda Dong
	 	Warren Hosseinion, M.D.	 	 	Linda Dong
	 	Chief Executive Officer	 	 	Manager

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