Document:

MANAGEMENT SERVICES AGREEMENT

 

This Management Agreement (“Agreement”)
is made and entered into as of this 20th day of March, 2009, by and between Apollo Medical Management, Inc., a Delaware corporation
(“Manager”), and ApolloMed Hospitalists, a California medical corporation (“Group”).

 

Recitals:

 

A.            Manager
is a Delaware corporation engaged in the business of managing physician practices to enhance the quality and efficiency of the
medical practices it manages.

 

B.            Group
is a California medical corporation that provides hospitalist services to inpatients at hospitals staffed by Group.

 

C.         
  Group desires retain Manager to provide assistance to Group in managing and administering all non-medical aspects of
Group’s medical practice in a manner and to the extent permitted by law.

 

D.          
 Group and Manager recognize that Group has sole responsibility for providing medical services to Group’s patients,
and Manager shall provide assistance to Group in managing and administering all non-medical functions of Group’s medical
practice.

 

THEREFORE, in consideration of the mutual
covenants and agreements contained herein, the parties agree as follows:

 

1.           
Management Services .  During the term of this Agreement, Group engages Manager to assist Group in providing the
following management and administrative services required by Group for the operation of the Practice:

 

(a)           
Business Matters .  Supervising and coordinating all day-to-day, non-medical business aspects of Group’s
Practice.

 

(b)           
Supplies and Equipment .  Ordering and purchasing, after consultation with Group, all medical and office supplies
and equipment required by Group in connection with the operation of Group’s practice.  All such supplies shall
be of a quality acceptable to Group.

 

(c)           
Bookkeeping .  Providing all bookkeeping and accounting services, including, without limitation, maintenance,
custody and supervision of Group’s business records, papers and documents, ledgers, journals and reports, and the preparation,
distribution and recording of all bills and statements for professional services rendered by Group in the course of Group’s
Practice.

 

    	-1-

    	 

    

 

(d)           
Management & Clinical Information Systems .  Upon request and in consultation with Group, the planning, negotiation
with third party vendors, selection, installation and operation of appropriate hardware and software (including but not limited
to the Apollo Web database technology) to provide Group with management and clinical information systems support.  All
clinical and financial data pertaining to Group’s practice shall be regularly backed up on electronic media, with additional
hard copy back up when in the judgment of Manager, after consultation with Group, it is prudent to do so, and copies of such back
up data in both electronic media and hard copy shall be provided to Group from time to time upon request of Group.  Upon
termination of this Agreement for any reason, all such data and back up data shall be promptly delivered to Group to ensure continuity
of Group’s financial and clinical operations.  All such services shall comply, as appropriate, with the Health
Insurance Portability and Accountability Act of 1996, and the regulations promulgated thereto (“HIPAA”).

 

(e)           
Billing & Collection .  Subject to Section 3(d) below, providing all billing and collection services for Group’s
medical practice.  All billings shall be accurate and in accord with appropriate and up-to-date payor coding requirements.  Manager
shall diligently pursue collections of Group and shall follow up billings in a timely fashion to ensure that payments are received
to the greatest extent possible in a commercially reasonable time, and that aged accounts receivable are maintained within commercially
reasonable limits, for medical practices similar to that of Group.

 

(i)   Attorney-In-Fact; Assignment
and Limitations .  In performing its billing and collection duties hereunder, Manager shall act as Group’s
agent and shall indicate it is billing in the name of Group.  Group hereby appoints Manager, for the term hereof, as
its true and lawful attorney-in-fact, with full power of assignment and substitution, to bill patients or third party payors on
Group’s behalf; collect accounts receivable arising out of billings, and receive payments on behalf of Group.  Notwithstanding
the foregoing, no assignment shall be made to Manager of any sums or rights to payment, the assignment of which is prohibited by
law (e.g., revenues from patients covered by the Medicare program).  In lieu of assignment of such payments, unless otherwise
prohibited by law, Group shall remit to Manager the amount of any such sums within five (5) business days of Group’s receipt
thereof.  Group and Manager shall cooperate in the establishment of a separate account or accounts to track all such
amounts.  In connection with its billing activities, Manager may take possession of, and endorse in the name of Group,
any and all notes, drafts and other instruments received by way of payment.  Manager shall assist Group in negotiating
or otherwise communicating with any patient or third party payor regarding claims processing and any disputes arising therefrom.

 

(ii)           
Bank Accounts .  Manager is hereby granted a general power of attorney with respect to the bank accounts of Group
and shall have full access to and signatory rights, with Group, over such bank accounts.  Manager shall have full power
and authority to deposit funds into, and withdraw funds from, all such accounts in accordance with the terms of this Agreement;
provided, however, that Group may impose such limitations upon Manager’s signatory rights over such accounts as Group shall
determine from time to time, in Group’s sole discretion.  Manager shall have full authority to receive and transact
on behalf of Group all cash, checks, drafts, notes and other instruments tendered as payment for professional services rendered
by Group, except as may be precluded by law.

 

    	-2-

    	 

    

 

(f)       
     UR/QA .  Assisting Group in the establishment and implementation of a program or programs
of utilization review and quality assurance for the activities of Group, and in the formulation and implementation of related policies,
procedures and protocols including, but not limited to both a monitoring function and the development and implementation of performance
parameters, evidence based medicine protocols, and outcomes measurements

 

(g)           
Insurance .  Negotiating and securing appropriate insurance coverage on behalf of Group and in connection with
Group’s Practice, after consultation with Group, including coverage for malpractice, comprehensive general liability, fire
and premises liability, worker’s compensation, business interruption, and such other coverage as may be agreed from time
to time between Manager and Group.

 

(h)           
Worker’s Compensation, Etc .  Preparing and filing all forms, reports, and returns required by law in connection
with unemployment insurance, workers’ compensation insurance, disability benefits, social security, and other similar laws
now in effect or hereafter imposed.

 

(i)            
Premises .  Managing the proper maintenance and physical operation of Group’s medical practice premises
(“Premises”).  Group’s medical office lease(s) are listed on Exhibit A, which is attached hereto and
made a part hereof.

 

(j)         
   Clerical Support .  Providing reception, secretarial, human resources, transcription and clerical
personnel and services, including management of the maintenance of medical records.  All Manager personnel shall be acceptable
to Group in its reasonable discretion and shall be appropriately trained and supervised for the duties assigned to them in connection
with Group’s practice.

 

(k)           
Advertising .  Marketing of physician services to hospitals, and otherwise coordinating advertising, marketing
and similar activities conducted on behalf of Group, after consultation with Group.

 

(l)            
Capital .  Consulting with Group regarding capital and financial needs, including seeking capital, undertaking
the efforts to raise, and providing access to, capital for any lawful purpose, including without limitation working capital, acquiring
other physician practices and acquiring other business assets of the practice.

 

(m)           
Contracting .  Manager shall assist Group in setting the parameters under which Group will enter into, and in
negotiating, contractual relations with hospitals and third party payors.

 

    	-3-

    	 

    

 

(n)           
Other Services .  Providing such other services as may be agreed between the parties from time to time which may
include, but not be limited to, Physician recruitment services, contracting services (with hospitals and payors), physicians scheduling,
Payroll services for the physicians (as well as management company personnel), Case management for patients

 

2.            Performance
of Manager’s Services.

 

(a)           
Manager’s Availability .  Manager shall devote its best efforts to carrying out the terms of this Agreement
and shall devote sufficient time and resources, as determined by Manager after consultation with Group, as is reasonably required
to discharge its duties under this Agreement.

 

(b)           
Manager’s Authority .  Manager shall perform all additional and ancillary services, not otherwise described
in this Agreement, that may in Manager’s judgment, after consultation with Group, be reasonable and appropriate in order
to meet Manager’s obligations under this Agreement.  Manager may subcontract with other persons or entities, including
entities related to Manager by common ownership or control, to perform all or any part of the services required of Manager by this
Agreement.  For purposes of this Agreement, Manager shall have signatory rights on all bank accounts used by Group in
the conduct of Group’s Practice, and Manager shall have the right to make deposits to and payments from such accounts as
it deems appropriate in furtherance of its obligations hereunder, in accordance with Paragraph 1(e)(ii) (Bank Accounts).

 

(c)           
Manager’s Responsibility .  In all matters under this Agreement, Manager shall abide by all applicable state
and federal laws and regulations, and applicable policies and procedures of Group.

 

(d)           
Reports to Group .  On or before the twenty-fifth (25 th ) day of the first month of each calendar
quarter, Manager shall provide Group with an accounting of all billings and collections on behalf of Group, and all deposits to
the account(s) of Group and payments from the account(s) of Group, effected by Manager for the benefit of Group during the immediately
preceding calendar quarter.  All reports shall be in such form as may be agreed between Manager and Group from time to
time.

 

3.        
   Obligations of Group.

 

(a)           
Designation of Agent .  Group hereby designates and appoints Manager to act as Group’s non-physician
manager and to provide the services to Group in connection with Group’s Practice as described in this Agreement.  Group
hereby designates Warren Hosseinion, M.D. as its designated representative who is duly authorized by the Group to bind the Group
and act on behalf of the Group in all respects pertaining to this Agreement.

 

    	-4-

    	 

    

 

(b)           
Access to Information .  Group acknowledges and agrees that all information and records concerning Group and Group’s
performance of services that may be obtained by Manager during the term of this Agreement may be used by Manager for all purposes
necessary or convenient to Manager’s obligations under this Agreement.

 

(c)           
Selection of Group Personnel .  Group shall retain responsibility for the selection, hiring and termination of
physicians, allied health professionals and medical assistants working in clinical capacities for the Group.  Group,
in consultation with Manager, shall be solely responsible for determining the compensation of all licensed medical professionals.

 

(d)           
Coding and Billing Procedures .  Group shall retain responsibility for decisions relating to coding and billing
procedure for patient care services.

 

4.            Confidentiality.

 

(a)           
Trade Secrets .  All proceedings, files, records and related information of Group and of Manager are confidential
and proprietary information of Group and Manager, respectively, and each party shall keep and maintain as strictly confidential
all such information to which it may have access by virtue of this Agreement.  Neither party shall voluntarily disclose
all or any part of such confidential information, orally or in writing, except as expressly required by law or pursuant to a written
authorization from the other party.  Each party shall include the provisions of this Paragraph in any written contract
with any employed or contracted persons that may be engaged by such party to render services pursuant to this Agreement, and shall
take such other steps as may be reasonable under the circumstances to ensure that its respective personnel do not disclose any
confidential information in violation of this provision.  This covenant shall survive the termination of this Agreement.  Each
party agrees that upon termination of this Agreement for any reason, it shall promptly return to the other party the originals
and all copies of any and all trade secrets, confidential or proprietary information, it may then possess, including without limitation
any such information stored on computer media.

 

(b)           
Medical Information & Patient Records .  Each party shall maintain the confidentiality of all patient records,
charts and other patient identifying information, and shall comply with all applicable State and Federal laws governing the confidentiality
of medical records and related information.  Manager will serve as a “Business Associate” (as that term is
defined under HIPAA) of Group, Accordingly, and in compliance with the requirements HIPAA, Manager shall, prior to the commencement
of services hereunder, enter into a mutually acceptable form of Business Associate Agreement.

 

    	-5-

    	 

    

 

(c)           
Intellectual Property Rights .  Group utilizes a proprietary database technology called ApolloWeb to enhance the
quality and efficiency of the medical practices it manages. (“ApolloWeb”).  From time to time, Group may
provide Manager with software programs and related documentation, or improvements and upgrades thereto, to facilitate its use of
ApolloWeb (“System-Related Software”).  Group hereby grants Manager a nonexclusive, royalty-free license
to reproduce, install and use on equipment owned or controlled by Group, and solely for Group’s own purposes (which may be
business or non-commercial, as applicable), any such System-Related Software only in the form it was provided or made available
to Manager by Group, and only in connection with Manager’s use of the ApolloWeb in accordance with this Agreement.  Manager
will not distribute, sublicense, modify, create derivative works of, sell, transfer or assign the System-Related Software, nor
will Manager reverse engineer, decompile or disassemble any object code of System-Related Software except to the extent permitted
by applicable law notwithstanding this restriction.  Manager further agrees not to remove or destroy any proprietary
markings or confidential legends placed upon or contained within any System-Related Software.

 

Group and its licensors reserve all right,
title and interest in the  ApolloWeb and System-Related Software, including all intellectual property rights therein
(including without limitation all copyrights, patents, trade secrets, trademarks, service marks and trade names) subject to the
licenses expressly set forth in this Agreement.  This Agreement does not include any sale or transfer to Manager of Group
intellectual property rights, including without limitation with respect to ApolloWeb or any System-Related Software.

 

Manager acknowledges that the content, data
and other materials made available by Group are owned or licensed by Group (the “Third Party Materials”).  Manager
will not reproduce, distribute, modify, create derivative works of, or exercise any other rights in, such third party materials
except as authorized by Group.

 

5.       
    Independent Contractors.

 

In the performance of services under this
Agreement, it is mutually understood and agreed that Manager is at all times acting and performing as an independent contractor
rendering administrative services to Group.  Neither party shall have any claim against the other under this Agreement
or otherwise for Workers’ Compensation, unemployment compensation, vacation pay, sick leave, retirement benefits, Social
Security benefits, disability insurance benefits, unemployment insurance benefits, or any other benefits.

 

6.            Staffing
of Manager and Group.

 

(a)           
Non-physician Personnel .  Manager shall be responsible for the payment to all persons employed or retained by
Manager of all compensation, including reasonable base salary, fringe benefits, bonuses, health and disability insurance, workers’
compensation insurance and any other benefits that Manager may make available to its employees or contractors.

 

    	-6-

    	 

    

 

(b)           
Licensed Professional Personnel .  Group shall employ or contract with all physicians and other licensed professional
personnel that Group, after consultation with Manager, deems to be required for the conduct of the Practice.  All such
personnel shall be employees or contractors of Group, and Group shall be responsible for the payment to all such persons of all
compensation, including reasonable base salary, fringe benefits, bonuses, health and disability insurance, workers’ compensation
insurance and any other benefits which Group may make available to Group’s employees or contractors; provided, however, that
Manager shall have management responsibility over the non-medical aspects associated with Group’s employment or contracting
of such personnel.

 

7.            Term
and Termination.

 

(a)           
Term .  This Agreement shall commence on August 1, 2008 and shall continue in full force and effect for a term
of twenty (20) years (the “Term”) until terminated as provided in this Agreement.

 

(b)           
No Termination without Cause .  This Agreement may be terminated only for cause as specified in Subparagraph (c)
below.

 

(c)           
Termination For Cause .  This Agreement may be terminated by either party for cause, upon sixty (60) days prior
written notice to the other party specifying the cause upon which such termination is based.  For purposes of this Agreement,
“cause” shall have the meanings set forth below.  Notwithstanding the foregoing, neither party may terminate
this Agreement if, during the foregoing sixty (60) day period, the party to whom notice has been given successfully cures the failure
or breach of performance upon which termination is based; provided, however, that if such failure or breach cannot be cured within
the sixty (60) day period, termination shall not occur if the party to whom notice has been given takes material action during
such sixty (60) day period to cure the failure or breach and thereafter diligently and continuously prosecutes such cure to completion.

 

(d)           
By Group .  Cause for termination by Group shall be limited to the following: (i) failure of any representation
or warranty made by Manager in this Agreement to be true at the date of this Agreement and to remain true throughout the Term hereof,
which failure has a material adverse effect upon Group; (ii) material failure by Manager to duly observe and perform the covenants
and agreements undertaken by Manager herein; (iii) misrepresentation of material fact, or fraud, by Manager in the discharge
of its obligations under this Agreement; (iv) if Manager shall dissolve, shall be adjudicated insolvent or bankrupt, or shall
make a general assignment for the benefit of creditors, or shall consent to or authorize the filing of a voluntary petition in
bankruptcy, which petition shall remain undismissed for a period of sixty (60) days, or the filing against Manager of any proceeding
in involuntary bankruptcy, which proceeding shall remain undismissed for a period of sixty (60) days.

 

    	-7-

    	 

    

 

(e)           
By Manager .  Cause for termination by Manager shall be limited to the following: (i) failure of any representation
or warranty made by Group in this Agreement to be true at the date of this Agreement and to remain true throughout the Term hereof,
which failure has a material adverse effect upon Manager; (ii) material failure by Group to duly observe and perform all the
covenants and agreements undertaken by Group herein; (iii) misrepresentation of material fact, or fraud, by Group in the discharge
of Group’s obligations under this Agreement; or (iv) if Group shall be adjudicated insolvent or bankrupt, or shall make
a general assignment for the benefit of creditors, or shall consent to or authorize the filing of a voluntary petition in bankruptcy,
which petition shall remain undismissed for a period of sixty (60) days, or the filing against Group of any proceeding in involuntary
bankruptcy, which proceeding shall remain undismissed for a period of sixty (60) days.

 

(f)           
Effect of Termination .  Termination of this Agreement shall not discharge either party from any obligation which
may have arisen and which remains to be performed upon the date of termination, including, but not limited to, the obligation to
compensate Manager in accordance with Section 8 (Management Fee).  Upon termination of this Agreement, Manager shall
promptly deliver to Group all clinical and financial data maintained by Manager for Group’s benefit.  Manager shall
make diligent efforts to collect receivables arising from services of Group prior to the date of termination and shall remit to
Group in a timely fashion the allocable portion of all such collections.  Similarly, following termination, all receivables
that Group may directly collect arising from services of Group prior to the date of termination shall be allocated as provided
herein, and Group shall remit to Manager in a timely fashion the allocable portion of Group’s collections of the same.

 

8.            Management
Fee.

 

(a)           In
consideration of the management services to be rendered by Manager hereunder, Group shall pay Manager, each month, a percentage
of Group’s gross revenue that Group receives for the performance of medical services by Group.  This percentage
will be amended or modified each month, according to medical practice budgets agreed between Manager and Group.

 

(b)           On
or before the twentieth (20th) day of the month following each month, Manager may deduct and pay to itself, from any account(s)
of Group managed by Manager, all amounts due and owing to Manager as management fees for the immediately preceding month.

 

9.            Rights
of Entry and Inspection.

 

(a)           
By Manager .  Manager and its duly authorized representatives shall have the right at all reasonable times to
enter upon Group’s Premises for the purposes of carrying out the duties of Manager hereunder, and for inspection and verification
of Group’s books and records pertaining to Group’s Practice; provided, however, that any such entry by Manager shall
not unreasonably interfere with the conduct of Group’s Practice.

 

    	-8-

    	 

    

 

(b)           
By Group .  Group and its duly authorized representatives shall have the right at all reasonable times to enter
upon Manager’s premises for the purposes of carrying out the duties of Group hereunder, and for inspection and verification
of Manager’s books and records pertaining to Group’s Practice; provided, however, that any such entry by Group shall
not unreasonably interfere with the conduct of Manager’s business.

 

10.          Group’s
Representations and Warranties.

 

(a)           
Properly Constituted .  Group is a professional corporation, duly organized, existing in good standing under the
laws of the State of California, has the corporate power and authority to own its property and to carry on Group’s business
as it is now being conducted, and to enter into and perform Group’s obligations under this Agreement.

 

(b)           
No Conflicts .  The execution, delivery and performance of this Agreement will not contravene or conflict with
any agreements, indentures or contracts to which Group is a party or by which it is bound.

 

(c)           
Licenses and Permits .  Group has in full force and effect all licenses, permits and certificates required to
operate Group’s Practice as it is being operated as of the date of this Agreement.  Group shall promptly notify
Manager should any of Group’s shareholders become ineligible to practice medicine in the State of California.  Group
shall not permit any persons who have become ineligible to practice medicine in California to retain shares of Group beyond such
time periods as may be permitted by law.

 

(d)           
Consents .  Group has taken all appropriate corporate action and has obtained all necessary approvals and consents
that are necessary or convenient to enable Group to enter into this Agreement.

 

11.          Manager’s
Representations and Warranties.

 

(a)           
Properly Constituted .  Manager is a corporation duly organized, existing and in good standing under the laws
of the State of Delaware, has the corporate power and authority to own its property and to carry on its business as it is now being
conducted, and to enter into and perform its obligations under this Agreement.

 

(b)           
No Conflicts .  The execution, delivery and performance of this Agreement will not contravene or conflict with
any agreements, indentures or contracts to which Manager is a party or by which it is bound.

 

    	-9-

    	 

    

 

(c)           
Licenses and Permits .  Manager has in full force and effect all licenses, permits and certificates required to
operate its business as it is being operated as of the date of this Agreement.

 

(d)           
Consents .  Manager has taken all appropriate corporate action and has obtained all necessary approvals and consents
that are necessary or convenient to enable Manager to enter into this Agreement.

 

12.           Insurance
and Indemnity.

 

(a)           
Professional Liability .  Group shall at all times during the term of the Agreement procure and maintain, and
cause all licensed health care personnel associated with Group’s medical practice to similarly procure and maintain, professional
liability insurance with minimum coverage limits of One Million Dollars ($1,000,000) per occurrence and Three Million Dollars ($3,000,000)
annual aggregate, and in such form and substance, and underwritten by such recognized companies, authorized to do business in California,
as Manager may from time to time reasonably require, and shall provide copies of all such policies and renewals thereof to Manager
upon request.

 

(b)           
Indemnity .  To the extent permissible under each party’s respective policies of insurance, each party shall
indemnify and hold harmless the other party, and its shareholders, directors, officers, employees and agents, from and against
all damages, costs, expenses, liabilities, claims, demands, and judgments of whatever kind or nature, including reasonable attorneys’
fees and costs, for which either party might liable, in whole or in part, arising out of or related to the acts and/or omissions
of the indemnifying party and its shareholders, directors, officers employees and agents.

 

13.          General
Provisions.

 

(a)           
Assignment .  Neither party shall assign any of its rights nor delegate any of its duties or obligations under
this Agreement without the prior written consent of the other party.  Notwithstanding the foregoing, Manager may assign
this Agreement to a successor in interest by providing notice to Group, which notice shall state the effective date of such assignment.  Upon
such assignment, the successor shall be responsible for the duties and responsibilities of Manager hereunder.  Nothing
contained in this Agreement shall be construed to prevent the Manager from selling or conveying substantially all of its assets
used in connection with the performance of this Agreement, nor shall Group be prohibited from selling or conveying substantially
all of its assets provided that the Agreement continues in full force and effect.

 

(b)           
Access to Books and Records .  Manager shall make available, upon request, to the Secretary of Health and Human
Services and the Comptroller General of the United States, or their authorized representatives, this Agreement, and all books,
documents and records relating to the nature and extent of the costs of services provided hereunder for a period of five (5) years
after the furnishing of services pursuant hereto.  In addition, if Manager’s services under this Agreement are
to be provided by subcontract and if that subcontract has a value or cost of Ten Thousand Dollars ($10,000.00) or more over a twelve-month
period, Manager shall require in writing that the subcontractor make available to the Secretary and the Comptroller General, or
their authorized representatives, for a period of five (5) years after the furnishing of such services, the subcontract and all
books, documents and records relating to the nature and extent of the costs of the services provided thereunder.

 

    	-10-

    	 

    

 

(c)           
Amendments .  This Agreement may be amended at any time by mutual agreement of the parties without additional
consideration, provided that before any amendment shall become effective, it shall be reduced to writing and signed by the parties.  Notwithstanding
the foregoing, should any provision of this Agreement be in conflict with a governing State or federal law, it shall be deemed
amended accordingly.

 

(d)           
Notices .  Notices required under this Agreement shall be deemed given (i) at the time of personal delivery upon
the party to be served; or (ii) twenty four (24) hours following deposit for overnight delivery with a bonded courier holding itself
out to the public as providing such service, or following deposit in the U.S. Mail, Express Mail for overnight delivery; or (iii)
forty eight (48) hours following deposit in the U.S. Mail, registered or certified mail; and in any case postage prepaid and addressed
as follows, or to such other addresses as either party may from time to time designate to the other:

 

	 	To Group: 	ApolloMed Hospitalists

 

P.O. Box 4555

Glendale,
CA 91222

 

	 	To Manager:	Apollo Medical Management, Inc.

 

1010 N. Central Ave.

Glendale, CA 91201

 

(e)           
Entire Agreement .  This Agreement, including all Attachments, is the entire Agreement between the parties regarding
the subject matter hereof, and supersedes all other and prior agreements, whether oral or written.

 

(f)           
Successors and Assigns .  This Agreement shall inure to the benefit of, and shall be binding upon, the parties
hereto and their permitted successors and assigns.

 

(g)           
Waiver of Provisions .  No waiver of any terms or conditions hereof shall be valid unless given in writing, and
signed by the party giving such waiver.  A waiver of any term or condition hereof shall not be construed as a future
or continuing waiver of the same or any other term or condition hereof.

 

    	-11-

    	 

    

 

(h)           
Governing Law .  This Agreement shall be construed in accordance with and governed by the laws of the State of
California without regard to conflicts of law.

 

(i)           
Severability .  The provisions of this Agreement shall be deemed severable, and if any portion shall be held invalid,
illegal or unenforceable for any reason, the remainder of this Agreement shall be effective and binding upon the parties.

 

(j)           
Attorneys’ Fees .  In the event that any action, including mediation or arbitration, is brought by either
party arising out of or in connection with this Agreement, the prevailing party in such action shall be entitled to recover its
costs of suit, including reasonable attorneys’ fees.

 

(k)           
Captions .  Any captions to or headings of the articles, sections, subsections, paragraphs, or subparagraphs of
this Agreement are solely for the convenience of the parties, are not a part of this Agreement, and shall not be used for the interpretation
or determination of any provision hereof.

 

(l)           
Cumulation of Remedies .  The various rights, options, elections, powers, and remedies of the respective parties
hereto granted by this Agreement are in addition to any others to which the parties may be entitled to by law, shall be construed
as cumulative, and no one of them is exclusive of any of the others, or of any right of priority allowed by law.

 

(m)         
No Third Party Rights .  The parties do not intend the benefits of this Agreement to inure to any third person
not a signatory hereto; and accordingly, this Agreement shall not be construed to create any right, claim or cause of action against
either party by any person or entity not a party hereto.

 

(n)           
Construction of Agreement .  The parties agree that each party and its counsel have participated in the review
and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the
drafting party shall not apply in the interpretation of this Agreement.

 

(o)           
Counterparts .  This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

 

    	-12-

    	 

    

 

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

 

	 	Apollo Medical Management, Inc.
	 	(“MANAGER”):
	 	 	 
	 	By:	/s/ Warren Hosseinion
	 	 	 
	 	Its:	Chief Executive Officer
	 	 	 
	 	Apollo Med Hospitalists, a Medical Corporation
	 	(“GROUP”):
	 	 	 
	 	By:	/s/ Warren Hosseinion
	 	 	 
	 	Its:	Chief Executive Officer

 

    	-13-

    	 

    
 

Exhibit A

 

Real Property Leases

 

No lease existed at the time of entering of into AgreementAMENDMENT TO DIRECTOR AGREEMENT

 

THIS AMENDMENT, dated as of July 16, 2010
(the “Amendment”), is being made to that certain Board of Directors Agreement (the “Director Agreement”),
dated October 27, 2008, by and between Apollo Medical Holdings, Inc., a Delaware corporation (the “Corporation”)
and Suresh Nihalani (“Mr. Nihalani”). Capitalized terms used herein and not otherwise defined shall have the
meanings given such terms in the Director Agreement.

 

WHEREAS, pursuant to the Director Agreement,
Mr. Nihalani was to receive in exchange for his services as a director 400,000 shares of common stock (“Common Stock”)
of the Corporation, which was to be held in escrow until released by the Corporation in 36 equal monthly installments.

 

WHEREAS, in lieu of such arrangement, the
Corporation has been issuing shares of Common Stock to Mr. Nihalani in an amount equal to 1/36 of 400,000 on a monthly basis, and
Mr. Nihalani has agreed to such arrangement.

 

WHEREAS, to date, Mr. Nihalani has been
issued 188,887 shares of Common Stock pursuant to these issuances.

 

WHEREAS, the Corporation and Mr. Nihalani
wish to modify the manner in which Mr. Nihalani will be receiving shares on a going forward basis.

 

NOW, THEREFORE, in consideration of the
premises and mutual covenants and obligations hereinafter set forth, Apollo and Mr. Nihalani hereby agree as follows:

 

1. Amendment to Restricted Stock Award.
“Section B. Equity Compensation” shall be amended and restated as follows:

 

Issued Shares. Mr. Nihalani and the Corporation hereby
acknowledge and agree that as of the date hereof, 188,887 shares of Common Stock have been issued to Mr. Nihalani pursuant to the
Director Agreement.

 

Purchase of Shares. Mr. Nihalani hereby purchases, and
the Corporation hereby sells to Mr. Nihalani, 211,113 shares of Common Stock (the “Purchased Shares”) at a purchase
price of $0.001 per share (the “Purchase Price”). Concurrently with the execution of this Agreement, Mr. Nihalani
shall pay the Purchase Price for the Purchased Shares in cash.

 

Restricted Securities. Mr. Nihalani hereby confirms
that he has been informed that the Purchased Shares are restricted securities under the Securities Act of 1933 (the “1933
Act”) and may not be resold or transferred unless the Purchased Shares are first registered under the federal securities
laws or unless an exemption from such registration is available. Accordingly, Mr. Nihalani hereby acknowledges that he is prepared
to hold the Purchased Shares for an indefinite period and that Mr. Nihalani is aware that Rule 144 of the Securities and Exchange
Commission issued under the 1933 Act is not presently available to exempt the sale of the Purchased Shares from the registration
requirements of the 1933 Act. Prior to his acquisition of the Purchased Shares, Mr. Nihalani acquired sufficient information about
the Corporation to reach an informed knowledgeable decision to acquire the Purchased Shares. Mr. Nihalani has such knowledge and
experience in financial and business matters as to make Mr. Nihalani capable of utilizing said information to evaluate the risks
of the prospective investment and to make an informed investment decision. Mr. Nihalani is able to bear the economic risk of Mr.
Nihalani’s investment in the Purchased Stock.

 

    	 

    	 

    
 

Disposition of Shares. Mr. Nihalani hereby agrees
that he shall make no disposition of the Purchased Shares (other than a permitted transfer as described below) unless and until
he shall have notified the Corporation of the proposed disposition and, if requested by the Corporation, Mr. Nihalani shall have
provided the Corporation an opinion of counsel in form and substance satisfactory to the Corporation, that (i) the proposed
disposition does not require registration of the Purchased Shares under the 1933 Act or (ii) all appropriate action necessary
for compliance with the registration requirements of the 1933 Act or of any exemption from registration available under the 1933
Act (including Rule 144) has been taken.

 

The Corporation shall not be required (i) to
transfer on its books any Purchased Shares that have been sold or transferred in violation of the provisions of this section or
(ii) to treat as the owner of the Purchased Shares, or otherwise to accord voting or dividend rights to, any transferee to
whom the Purchased Shares have been transferred in contravention of the Directors Agreement, including this Amendment.

 

Restrictive Legends. In order to reflect the restrictions
on disposition of the Purchased Shares, the stock certificates for the Purchased Shares will be endorsed with restrictive legends,
including one or both of the following legends:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THE SHARES MAY NOT BE SOLD OR OFFERED
FOR SALE IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER SUCH ACT, OR (II) AN OPINION
OF COUNSEL SATISFACTORY TO THE CORPORATION THAT REGISTRATION UNDER SUCH ACT IS NOT REQUIRED WITH RESPECT TO SUCH SALE OR OFFER.

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT
TO THE TERMS AND CONDITIONS OF A CERTAIN BOARD OF DIRECTORS AGREEMENT, AS AMENDED, INCLUDING A REPURCHASE RIGHT, AND SUCH AGREEMENT
IS ON FILE AT THE CORPORTATION’S PRINCIPAL OFFICE AND MAY BE INSPECTED DURING NORMAL BUSINESS HOURS.”

 

If required by the authorities of any state in connection
with the issuance of the Purchased Shares, the legend or legends required by such state authorities shall also be endorsed on all
such certificates.

 

Mr. Nihalani Rights. Until such time as the Corporation
actually exercises its Repurchase Rights under this Amendment, Mr. Nihalani (or any successor in interest) shall have all the rights
of a shareholder (including voting and dividend rights) with respect to the Purchased Shares, subject, however, to the transfer
restrictions set forth below.

 

    	 

    	 

    
 

Section 83(b) Election. Mr. Nihalani understands
that under Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”), the difference between
the Purchase Price paid for the Purchased Shares and their fair market value on the date any forfeiture restrictions applicable
to such shares lapse will be reportable as ordinary income at that time. For this purpose, the term “forfeiture restrictions”
includes the right of the Corporation to repurchase the Purchased Shares pursuant to its Repurchase Right under this Amendment.
Mr. Nihalani understands that he may elect to be taxed at the time the Purchased Shares are acquired hereunder to the extent the
fair market value of the Purchased Shares exceeds the Purchase Price rather than when and as such Purchased Shares cease to be
subject to such forfeiture restrictions, by filing an election under Section 83(b) of the Code with the I.R.S. within thirty
(30) days after the date of purchase hereunder. If the fair market value of the Purchased Shares at the date of purchase equals
(or is less than) the Purchase Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences
in the future. The form for making this election is attached as Exhibit A hereto. Mr. Nihalani understands that failure to
make this filing within the thirty (30) day period will result in the recognition of ordinary income by Mr. Nihalani (in the event
the fair market value of the Purchased Shares increases after the date of purchase) as the forfeiture restrictions lapse. MR.
NIHALANI IS URGED TO SEEK ADVICE FROM HIS TAX ADVISOR AS TO WHETHER OR NOT TO MAKE A SECTION 83(b) ELECTION AND THE RAMIFICATIONS
OF MAKING SUCH AN ELECTION. IN PROVIDING THE FORM ATTACHED AS EXHIBIT A, THE COMPANY MAKES NO REPRESENTATIONS AS TO WHETHER THE
SECTION 83(b) ELECTION SHOULD BE MADE BY EMPLOYEE. MR. NIHALANI ACKNOWLEDGES THAT IT IS HIS SOLE RESPONSIBILITY, AND NOT
THE CORPORATION’S, TO FILE A TIMELY ELECTION UNDER SECTION 83(b), EVEN IF HE REQUESTS THE CORPORATION OR ITS REPRESENTATIVES
TO MAKE THIS FILING ON HIS BEHALF.

 

Transfer Restrictions. Mr. Nihalani
shall not transfer, assign, encumber, or otherwise dispose of any of the Purchased Shares that are subject to the Corporation’s
Repurchase Right. Such restrictions on transfer, however, shall not be applicable to a transfer of title to the Purchased Shares
effected pursuant to Mr. Nihalani’s will or the laws of intestate succession provided that the transferee, as a condition
precedent to the validity of such transfer, acknowledges in writing to the Corporation that such transferee is bound by the provisions
of this Amendment and that the transferred shares are subject to the Corporation’s Repurchase Right granted hereunder, to
the same extent such shares would be so subject if retained by Mr. Nihalani.

 

Grant of Repurchase Right. The Corporation is
hereby granted the right (the “Repurchase Right”), at any time during the sixty (60) day period following
the first date that Mr. Nihalani is no longer a director of the Corporation (the “Repurchase Date”), to elect
to repurchase all or (at the discretion of the Corporation) any portion of the Purchased Shares in which Mr. Nihalani has not acquired
a vested interest in accordance with the vesting provisions set forth below (such shares to be hereinafter called the “Unvested
Shares”) at a purchase price of $.001 per share.

 

Exercise of the Repurchase Right. The Repurchase
Right shall be exercisable by written notice delivered to Mr. Nihalani prior to the expiration of the sixty (60) day period following
the Repurchase Date. The notice shall indicate the number of Unvested Shares to be repurchased and the date on which the repurchase
is to be effected, such date to be not more than thirty (30) days after the date of notice. The Corporation shall, concurrently
with the receipt of such stock certificates from Mr. Nihalani, pay to Mr. Nihalani in cash or cash equivalents, an amount equal
to the Purchase Price with respect to the Unvested Shares that are to be repurchased.

 

    	 

    	 

    
 

Vesting of Purchased Shares; Termination of the Repurchase
Right. Notwithstanding any other provision in this Agreement to the contrary, the Corporation’s Repurchase Right shall
terminate, and the Purchased Shares shall become fully vested, with respect to 400,000/36 of the Purchased Shares on the last day
of each month (each, a “Vesting Date”), starting on July 31, 2010 and ending on November 30, 2011, provided
that Mr. Nihalani continuously serves as director through that Vesting Date. If any installment includes
a fraction of a share, the fraction shall be carried forward and added to subsequent installments. The Repurchase Right
shall terminate with respect to any Unvested Shares for which it is not exercised within 60 days of the Repurchase Date.

 

Additional Shares or Substituted Securities. In
the event of any stock dividend, stock split, recapitalization or other change affecting the Corporation’s outstanding common
stock as a class effected without receipt of consideration, then any new, substituted or additional securities or other property
(including money paid other than as a regular cash dividend) which is by reason of any such transaction distributed with respect
to the Purchased Shares shall be immediately subject to the Repurchase Right, but only to the extent the Purchased Shares are at
the time covered by such right. Appropriate adjustments to reflect the distribution of such securities or property shall be made
to the number of Purchased Shares subject to the Repurchase Right hereunder and to the price per share to be paid upon the exercise
of the Repurchase Right in order to reflect the effect of any such transaction upon the Corporation’s capital structure;
provided, however, that the aggregate purchase price to be paid by the Corporation pursuant to the Repurchase Right shall remain
the same.

 

Cancellation of Shares. If the Corporation (or
its assignees) shall make available, at the time and place and in the amount and form provided in this Amendment, the consideration
for the Purchased Shares to be repurchased in accordance with the provisions of this Agreement, then from and after such time,
the person from whom such shares are to be repurchased shall no longer have any rights as a holder of such shares (other than the
right to receive payment of such consideration in accordance with this Amendment), and such shares shall be deemed purchased in
accordance with the applicable provisions hereof and the Corporation (or its assignees) shall be deemed the owner and holder of
such shares, whether or not the certificates therefor have been delivered as required by this Amendment.

 

2.          Amendment
to Indemnification Agreement. Exhibit B to the Director Agreement, the Indemnification Agreement, shall be amended and
restated as set forth in Exhibit B hereto.

 

3.          Merger
Agreement in Full Force and Effect. Except as set forth herein, the Merger Agreement shall remain in full force and effect.

 

4.          Counterparts.
This Amendment may be executed in any number of counterparts, and each such counterpart hereof shall be deemed to be an original
agreement, but all such counterparts together shall constitute but one agreement. Facsimile or PDF counterpart signatures to this
Amendment shall be acceptable.

 

    	 

    	 

    
 

5.          Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the State of California applicable
to contracts made and to be performed wholly therein.

 

6.          Severability.
Should any provision of this Amendment be held invalid or illegal, such provision shall not give rise to invalidate the Amendment
but shall be construed as if to omit any invalid or illegal part, and all remaining rights and obligations of the parties shall
be construed and enforced accordingly.

 

7.          California
Securities Law. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER
OF CORPORATIONS OF THE STATE OF CALIFORNIA, AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION
THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION BY SECTION 25100,
25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON
SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

 

(Signature Page Follows)

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
executed and delivered this Amendment as of the date first above written.

 

	 	APOLLO MEDICAL HOLDINGS, INC.
	 	A Delaware Corporation
	 	 
	 	By: /S/ Warren Hosseinion, M.D.
	 	Title:  Chief Executive Officer
	 	 
	 	By: /S/ Suresh Nihalani
	 	Title:  Director

  

    	 

    	 

    

 

 

Exhibit A

 

ELECTION UNDER SECTION 83(b) OF

THE INTERNAL REVENUE CODE

 

The undersigned hereby makes an election pursuant to Section
83(b) of the Internal Revenue Code with respect to the property described below and supplies the following information in accordance
with the regulations promulgated thereunder:

 

1. The name, address
and social security number of the undersigned:

 

Name: Suresh Nihalani

Address: ________________________________

________________________________________

Social Security No.  ________________________

 

2. Description of property
with respect to which the election is being made:

 

211,113 shares of common stock
of Apollo Medical Holdings, Inc. (the “Company”).

 

3. The date on which
the property was transferred is July 25, 2010.

 

4. The taxable year to
which this election relates is calendar year 2010.

 

5. Nature of restrictions
to which the property is subject:

 

The shares of stock are subject to the provisions of a Restricted
Stock Agreement between the undersigned and the Company. The shares of stock are subject to forfeiture under the terms of the Agreement.

 

6. The fair market value
of the property at the time of transfer (determined without regard to any lapse restriction) was $ .085 per share, for a total
of $ 17,945.

 

7. The amount paid by
taxpayer for the property was nothing.

 

8. A copy of this statement
has been furnished to the Company.

 

Dated:

 

	 	 
	 	Taxpayer’s Signature
	 	 
	 	 
	 	Taxpayer’s Spouse’s Signature

 

    	 

    	 

    
 

PROCEDURES FOR MAKING ELECTION

UNDER INTERNAL REVENUE CODE SECTION 83(b)

 

The following procedures must be followed with respect to the
attached form for making an election under Internal Revenue Code section 83(b) in order for the election to be effective:

 

A.           You
must file one copy of the completed election form with the IRS Service Center where you file your federal income tax returns within
30 days after the Date of Award of your Restricted Stock.

 

B.           At
the same time you file the election form with the IRS, you must also give a copy of the election form to the Secretary of the Company.

 

C.           You
must file another copy of the election form with your federal income tax return (generally, Form 1040) when it is filed for the
taxable year in which the stock is transferred to you. It is suggested that a copy also be attached to your state income tax return.

 

    	 

    	 

    

 

Exhibit B 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (“Agreement”)
is made as of this 16th day of July, 2010, by and between Apollo Medical Holdings, Inc., a Delaware corporation (the “Company”),
and Suresh Nihalani (“Indemnitee”), with reference to the following facts:

 

A.           Indemnitee
is a director of the Company.

 

B.           The
Company recognizes that the vagaries of public policy and the interpretation of ambiguous statutes, regulations and court opinions
are too uncertain to provide the Company’s officers and directors with adequate or reliable advance knowledge or guidance
with respect to the legal risks and potential liabilities to which they may become personally exposed as a result of performing
their duties in good faith as an Agent (as defined below) for the Company Group (as defined below).

 

C.           The
Company recognizes that the cost to a director or officer of defending against lawsuits resulting from the performance of his or
her duties in good faith for the Company Group, whether or not meritorious, is typically beyond the financial resources of most
officers and directors of the Company.

 

D.           The
Company recognizes that the legal risks and potential liabilities, and the very threat thereof, associated with lawsuits filed
against the officers and directors of the Company Group, and the resultant substantial time, expense, harassment and anxiety spent
and endured in defending against such lawsuits, bears no reasonable or logical relationship to the amount of compensation received
by such officers and directors, and thus poses a significant deterrent to and results in increased reluctance on the part of experienced
and capable individuals to serve as an Agent of the Company Group.

 

E.           In
order to induce and encourage highly experienced and capable persons such as Indemnitee to serve as an Agent of the Company Group,
secure in the knowledge that certain expenses, costs and liabilities incurred by them in their defense of such litigation will
be borne by the Company and that they will receive the maximum protection against such risks and liabilities as may be afforded
by law, the Board (as defined below) has determined that entering into this Agreement with Indemnitee is not only reasonable and
prudent but necessary to promote and ensure the best interests of the Company and the Company’s shareholders.

 

F.           The
Company and Indemnitee desire that the indemnification rights provided by this Agreement shall be supplemental to, and shall not
supersede or replace, any indemnification rights which may be provided by other sources, including without limitation any indemnification
which may be provided by the Company pursuant to its bylaws, by contract or by applicable law.

 

NOW, THEREFORE, with reference to the foregoing
facts, the Company and Indemnitee hereby agree as follows:

 

Agreement to Serve. Indemnitee agrees to serve
and/or continue to serve as a director and/or officer of one or more members of the Company Group in the same capacity or capacities
in which Indemnitee is serving on the date hereof for at least 10 days from the date hereof; provided, however, that
nothing contained in this Agreement is intended to or shall create any obligation of any member of the Company Group to continue
to retain Indemnitee as an Agent or to maintain Indemnitee as a director during such period.

 

    	 

    	 

    
 

Definitions.

 

The following terms shall have the meanings
set forth below:

 

“Action” shall mean any
threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative.

 

“Agent” shall mean, with
respect to Indemnitee, Indemnitee in his or her capacity as an officer, director, employee or agent of the Company Group and in
his or her capacity as an officer, director, employee or agent of any other Entity for which he or she is serving in such capacity
or capacities as the request of the Company. For purposes of this Agreement, if Indemnitee provides service as an officer, director,
employee or agent of any Entity controlled by the Company or any employee benefit plan of the Company, then Indemnitee shall be
deemed to serve at the request of the Company.

 

“Board” shall mean the
Board of Directors of the Company.

 

“Company Group” shall
mean the Company, each subsidiary and parent of the Company, and any successor, resulting or surviving corporation of the Company
or any subsidiary or parent of such successor, resulting or surviving corporation.

 

For purposes of this Agreement, references
to the “Company Group” shall include, in addition to the resulting corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued,
would have had power and authority to indemnify its Agents, so that if Indemnitee is or was an Agent of such constituent corporation,
or is or was serving at the request of such constituent corporation as an Agent of another corporation, partnership, joint venture,
trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the
resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence
had continued.

 

“Entity” shall mean any
corporation, limited liability company, partnership, joint venture, trust or other enterprise, and employee benefit plan.

 

“Expenses” shall include
costs and expenses, including without limitation attorneys’ fees.

 

“Fines” shall include,
in addition to fines, any excise taxes assessed on Indemnitee with respect to an employee benefit plan.

 

For purposes of this Agreement, if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “in the best interests of the Company”
as referred to in this Agreement.

 

    	 

    	 

    
 

Indemnification.

 

Third Party Proceedings. The Company shall indemnify
Indemnitee if Indemnitee is or was a party or is threatened to be made a party to any Action (other than an Action by or in the
right of the Company) by reason of the fact that Indemnitee is or was an Agent against Expenses, judgments, Fines, settlements
and other amounts actually and reasonably incurred by Indemnitee in connection with such Action if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the best interests of the Company and its shareholders and, with respect
to any criminal Action, had no reasonable cause to believe Indemnitee’s conduct was unlawful. The termination of any Action
by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in the
best interest of the Company, or with respect to any criminal Action, had reasonable cause to believe that Indemnitee’s conduct
was unlawful.

 

Proceedings By or in the Right of the Company.
The Company shall indemnify Indemnitee if Indemnitee is or was a party or is threatened to be made a party to any Action by or
in the right of the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was an Agent against
Expenses actually and reasonably incurred by Indemnitee in defense or settlement of the Action if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the best interests of the Company and its shareholders.

 

Mandatory Payment of Expenses. To the extent that
Indemnitee has been successful on the merits or otherwise in defense of any Action referred to in Section 3.1 or 3.2 or the
defense of any claim, issue or matter therein, Indemnitee shall be indemnified against Expenses actually and reasonably incurred
by Indemnitee in connection therewith.

 

Approval for Settlements. The Company shall not
be obligated to indemnify Indemnitee for any settlements entered into by Indemnitee with respect to any Action unless the Company
approves such settlement or the Company unreasonably withholds such approval following not less than 10 days prior written notice
of the proposed settlement.

 

Expenses; Indemnification Procedure.

 

Advancement of Expenses. The Company shall advance
all Expenses actually and reasonably incurred by Indemnitee in connection with the investigation, defense, or appeal of any Action
referenced in Section 3 hereof. Indemnitee hereby undertakes to repay such amounts advanced only if, and to the extent that,
it shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby.

 

Notice to Company by Indemnitee. Indemnitee shall,
as a condition precedent to Indemnitee’s right to be indemnified under this Agreement, give the Company notice in writing
as soon as practicable of any claim made against Indemnitee for which such indemnification will or could be sought under this Agreement.
Notice to the Company shall be directed to the Chief Executive Officer of the Company at the executive offices of the Company (unless
Indemnitee is the Chief Executive Officer, in which the notice shall be addressed to the Board of Directors and to the next most
senior officer of the Company). In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably
require and as shall be within Indemnitee’s power.

 

    	 

    	 

    
 

Procedure. The Company agrees to provide any indemnification
and advances required under this Agreement no later than 30 days after receipt of the written request of Indemnitee. If a claim
for indemnification or advance under this Agreement is not paid in full by the Company within 30 days after a written request for
payment therefor has first been received by the Company, Indemnitee may, but need not, at any time thereafter bring an action against
the Company to recover the unpaid amount of the claim. It shall be a defense to any such action (other than an action brought to
enforce a claim for expenses incurred in connection with any Action in advance of its final disposition) that Indemnitee has not
met the standards of conduct which make it permissible under the applicable law for the Company to indemnify Indemnitee, but the
burden of proving such defense shall be on the Company and Indemnitee shall be entitled to receive interim payments of expenses
pursuant to Section 4.1 unless and until such defense may be finally adjudicated by court order or judgment from which no
further right of appeal exists. It is the intention of the parties that if the Company contests Indemnitee’s right to indemnification
under this Agreement or applicable law, the question of Indemnitee’s right to indemnification shall be for the court to decide,
and neither the failure of the Company (including its officers, Board, any committee or subgroup of its Board, independent legal
counsel or its shareholders) to have made a determination that indemnification of Indemnitee is or is not proper in the circumstances
because Indemnitee has or has not met the applicable standard of conduct required by this Agreement or by applicable law, nor an
actual determination by the Company (including its officers, Board, any committee or subgroup of its Board, independent legal counsel
or its shareholders) that Indemnitee has or has not met such applicable standard of conduct, shall create a presumption that Indemnitee
has or has not met the applicable standard of conduct.

 

Notice to Insurers. If, at the time of the receipt
of a notice of a claim pursuant to Section 4 hereof, the Company has director and officer liability insurance in effect, the Company
shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in
the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on
behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

Selection of Counsel. If the Company shall be
obligated under Section 3 or 4 hereof to indemnify Indemnitee or advance Expenses to Indemnitee in connection with any Action,
the Company shall be entitled to assume the defense of such Action, with counsel approved by Indemnitee, upon the delivery to Indemnitee
of written notice of its election so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention
of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently
incurred by Indemnitee with respect to the same Action, provided that (a) Indemnitee shall have the right to employ separate
counsel in any such Action at Indemnitee’s expense; and (b) if (i) the employment of counsel by Indemnitee has
been previously authorized by the Company, (ii) Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and Indemnitee in the conduct of any such defense, or (iii) the Company shall not, in fact, have
employed counsel to assume the defense of such Action, then the fees and expenses of Indemnitee’s counsel shall be at the
expense of the Company.

 

    	 

    	 

    
 

Effect of Change in Law. Notwithstanding any other
provision of this Agreement, in the event of any change in any applicable law, statute or rule which narrows the right of the Company
to indemnify Indemnitee, such change, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement,
shall have no effect on this Agreement or the parties’ rights and obligations hereunder.

 

Nonexclusivity. The indemnification provided by
this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s Certificate
of Incorporation, its Bylaws, any other agreement, any vote of shareholders or disinterested directors, applicable law, or otherwise,
both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such office. The indemnification
provided under this Agreement shall continue as to Indemnitee from any action taken or not taken while serving in an indemnified
capacity even though he may have ceased to serve in such capacity at the time of the Action.

 

Partial Indemnification. If Indemnitee is entitled
under any provision of this Agreement to indemnification by the Company for some or a portion of the Expenses, judgments, Fines,
settlements and other amounts actually or reasonably incurred by Indemnitee in the investigation, defense, appeal or settlement
of any Action, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
of such Expenses, judgments, settlements, Fines and other amounts to which Indemnitee is entitled.

 

Mutual Acknowledgement re Submission of Claims to
Court. Both the Company and Indemnitee acknowledge that in certain instances, Federal or state law, regulation or applicable
public policy may require the Company to submit the question of indemnification to a court in certain circumstances for a determination
of the Company’s right under law or public policy to indemnify Indemnitee. For example, in connection with any public offering
of the Company’s securities, the Company will have to make such undertaking to the Securities and Exchange Commission. Indemnitee
acknowledges and agrees that the Company will not be in breach of this Agreement for any such submission.

 

Severability. Nothing in this Agreement is intended
to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s
inability, pursuant to law, regulation or court order, to perform its obligations under this Agreement shall be severable as provided
in this Section 7. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction,
then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this entire
Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance
with its terms.

 

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

 

Claims Initiated by Indemnitee. To indemnify or
advance Expenses to Indemnitee with respect to Actions initiated or brought voluntarily by Indemnitee and not by way of defense
unless the Company has approved the initiation or bringing of such Action in writing; or

 

    	 

    	 

    
 

Lack of Good Faith. To indemnify Indemnitee for
any Expenses incurred by Indemnitee with respect to any Action initiated by Indemnitee to enforce or interpret this Agreement,
if a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such Action was not
made in good faith or was frivolous; or

 

No Duplication of Payments. To make any payment
in connection with any claim made against Indemnitee to the extent Indemnitee has otherwise received payment (under any insurance
policy, the Certificate of Incorporation or Bylaws of the Company, contract or otherwise) of the amounts otherwise indemnifiable
hereunder. If the Company makes any indemnification payment to Indemnitee in connection with any claim made against Indemnitee
and Indemnitee has already received or thereafter receives payments in connection with the same claim, then Indemnitee shall reimburse
the Company in an amount equal to the lesser of (a) the amount of the payment otherwise received by Indemnitee and (b) the
full amount of the indemnification payment made by the Company.

 

Violation of Law. To indemnify or advance Expenses
if such indemnification would be a violation of applicable law or regulation.

 

Breach of Employment Agreement. To indemnify or
advance Expenses in connection with any claim by any member of the Company Group for any breach by Indemnitee of any employment
agreement.

 

Insured Claims. For expenses
or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts
paid in settlement) which have been paid directly to Indemnitee by an insurance carrier under a policy of officers’ and directors’
liability insurance or other policy of insurance maintained by the Company.

 

Unlawful Claims. In any manner which is contrary
to public policy or which a court of competent jurisdiction has finally determined to be unlawful.

 

Failure to Settle Action. For liabilities in excess
of the total amount at which settlement reasonably could have been made, or for any cost and/or expenses incurred by Indemnitee
following the time such settlement reasonably could have been effected, if Indemnitee shall have unreasonably delayed, refused
or failed to enter into a settlement of any Action (or investigation or appeal thereof) recommended in good faith, in writing,
by the Company and which does not require the Indemnitee to admit liability or agree to any injunctive relief.

 

Directors and Officers
Insurance. The Company shall, from time to time, make the good faith determination whether or not it is practicable for the
Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the directors and
officers of the Company with coverage for losses from wrongful acts, or to ensure the Company’s performance of its indemnification
obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage
against the protection afforded by such coverage. In all such policies of liability insurance, Indemnitee shall be named as an
insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of
the Company’s directors, if Indemnitee is a director; or of the Company’s officers, if Indemnitee is not an director
of the Company but is an officer. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such
insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such
insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions
so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a subsidiary or parent
of the Company.

 

    	 

    	 

    
 

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

 

Successors and Assigns. This Agreement shall be
binding upon the Company and its successors and assigns, and shall inure to the benefit of Indemnitee and Indemnitee’s estate,
heirs, legal representatives and assigns.

 

Notices. All notices, requests, demands and other
communications (collectively, “Notices”) given pursuant to this Agreement shall be in writing, and shall be
delivered by personal service, courier, facsimile transmission or by United States first class, registered or certified mail, postage
prepaid, addressed to the party at the address set forth on the signature page of this Agreement. Any Notice, other than a Notice
sent by registered or certified mail, shall be effective when received; a Notice sent by registered or certified mail, postage
prepaid return receipt requested, shall be effective on the earlier of when received or the third day following deposit in the
United States mails. Any party may from time to time change its address for further Notices hereunder by giving notice to the other
party in the manner prescribed in this Section.

 

Attorneys’ Fees. If any Action is brought
to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover as an element of its
costs, and not its damages, reasonable attorneys’ fees to be fixed by the court. The prevailing party is the party who is
entitled to recover the costs of its Action, whether or not such Action results in a final judgment. A party not entitled to recover
its costs of suit may not recover attorneys’ fees. No sum for attorneys’ fees shall be counted in calculating the amount
of a judgment for purposes of determining whether a party is entitled to recover its costs or attorneys’ fees.

 

The following alternative should be considered

 

If Indemnitee institutes an Action under this Agreement to enforce
or interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and expenses, including reasonable
attorneys’ fees, incurred by Indemnitee with respect to such Action, unless as a part of such Action, the court of competent
jurisdiction determines that all of the material assertions made by Indemnitee as a basis for such Action were not made in good
faith or were frivolous. In the event of an Action instituted by or in the name of the Company under this Agreement to enforce
or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all court costs and expenses, including
attorneys’ fees, incurred by Indemnitee in defense of such Action (including with respect to Indemnitee’s counterclaims
and cross-claims made in such Action), unless as a part of such Action the court determines that all of Indemnitee’s material
defenses to such Action were made in bad faith or were frivolous.

 

    	 

    	 

    
 

Consent to Jurisdiction. Each of the Company and
Indemnitee irrevocably consents to the jurisdiction of the court of the State of California for all purposes in connection with
any action or proceeding which arises out of or relates to this Agreement and agrees that any action instituted under this Agreement
shall be brought only in the state courts of the State of California, or in Federal courts located in such State.

 

Governing Law. This Agreement shall be governed
by and its provisions construed in accordance with the laws of the State of Delaware.

 

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

 

	 	 	/S/ Warren Hosseinion, M.D.
	 	 	 
	 	 	Its:  Chief Executive Officer
	Agreed to and accepted:	 	 
	 	 	 
	INDEMNITEE:	 	 
	 	 	 
	/S/  Suresh Nihalani

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}]]