Document:

Exhibit 10.1

APOLLO MEDICAL HOLDINGS, INC.

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT (this
 “Agreement”) is made and entered into as of May 10, 2019 by and between Apollo Medical Holdings, Inc.,
a Delaware corporation (“Lender”), and AP-AMH Medical Corporation, a California professional medical corporation
(“Borrower”), with reference to the following facts:

 

A.            Borrower
was incorporated in California in 2019 for the purpose of purchasing shares of the Series A Preferred Stock (the “Preferred
Shares”) of Allied Physicians of California, a Professional Medical Corporation, a California corporation doing business
as Allied Pacific Corporation (“APC”), for Five Hundred Forty Five Million Dollars ($545,000,000).

 

B.           The
rights and preferences of the Preferred Shares are governed by a Certificate of Determination of Preferences of Series A Preferred
Stock in substantially the form attached as Exhibit B hereto (the “Certificate of Determination”), to
be filed on or before the Funding Date (as defined below) with the Secretary of State of the State of California.

 

C.            Lender
is willing to loan Five Hundred Forty Five Million Dollars ($545,000,000) to Borrower to purchase the Preferred Shares.

 

D.            Certain
defined terms used in this Agreement are set forth on Exhibit A hereto.

 

NOW, THEREFORE, in consideration
of the foregoing premises and the mutual premises and covenants contained herein and other valuable consideration, the receipt
and adequacy of which is hereby acknowledged, the parties hereto agree as follows:

 

1.            Loan.

 

1.1           Loan
Amount. Lender hereby agrees to make a loan (the “Loan”) to Borrower in the amount of Five Hundred Forty
Five Million Dollars ($545,000,000) in cash or equivalent consideration on the Funding Date (as defined below), on the terms and
subject to the conditions set forth in this Agreement. The Loan will be evidenced by the secured promissory note dated as of the
Funding Date (the “Note”) of Borrower in substantially the form attached to this Agreement as Exhibit C.

 

1.2           Maturity
Date. The maturity date of the Loan is the date that is ten (10) years after the Funding Date (the “Maturity Date”).

 

1.3           Interest.
The outstanding principal amount of the Loan shall bear simple interest at rate of ten percent (10%) per annum; provided, however,
that the portion of outstanding principal that is the result of any increase in outstanding principal pursuant to Section 1.4
shall bear simple interest at the rate of ten and 75/100 percent (10.75%) per annum.

 

    			 

     

    

 

1.4           Payments.
Interest shall be payable quarterly in arrears within three (3) business days after each Series A Dividend Payment Date (as defined
in the Certificate of Determination) (each, an “Interest Payment Date”), solely out of Series A Dividends (as
defined in the Certificate of Determination) received by Borrower. To the extent that Borrower is unable to make any interest payment
due hereunder on the Interest Payment Date corresponding to any Series A Dividend Payment Date because it has received Series A
Dividends with respect to such Series A Dividend Payment Date in an amount insufficient (or because it has not received any Series
A Dividends on the Series A Dividend Payment Date) to pay in full such interest payment, the then outstanding principal amount
of the Loan shall be increased by the amount of any such accrued but unpaid interest. Borrower may not prepay any principal amount
of the Loan prior to the Maturity Date without the written consent of Lender; provided, however, that Borrower shall apply any
Series A Dividends that are received after any Interest Payment Date corresponding to the immediately preceding Series A Dividend
Payment Date to prepay the principal amount of the Loan in the amount equal to the portion of any such scheduled interest payment
that was not paid as scheduled and was added to the principal amount of the Loan.

 

1.5           Security
Interest. On Funding Date, Lender and Borrower shall enter into the Security Agreement in substantially the form attached to
this Agreement as Exhibit D, pursuant to which Borrower has granted a first priority security interest in all of its assets
(including the Preferred Shares) to secure payment of its obligations under the Loan Documents.

 

1.6           Funding;
Termination. Lender’s obligation to fund the Loan is subject to the fulfillment, to the satisfaction of Lender, of each
of the conditions precedent set forth on Exhibit E. If for any reason the Funding Date has not occurred on or before
the Termination Date, or if the Series A Preferred Shares Purchase Agreement or the Apollo Stock Purchase Agreement is terminated,
Lender may terminate this Agreement upon written notice to Borrower.

 

2.           Representations
and Warranties of the Borrower.

 

Borrower represents and
warrants to Lender that:

 

2.1           Due
Organization. Borrower: (a) has been duly organized and is validly existing as a corporation in good standing under the laws
of California with full power and authority (corporate and other) to own, lease and operate its properties and conduct its business
as currently conducted; and (b) is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction
in which the ownership or leasing of its respective properties or the conduct of its respective business requires such qualification.

 

2.2           Professional
Corporation. Borrower is a professional corporation as defined in Section 13401 of the California GCL and the ownership and
operation of Borrower are in compliance with the requirements of the California PC Law. Borrower has entered a Physician Shareholder
Agreement with its sole shareholder and Lender (the “Shareholder Agreement”) pursuant to which, among other
things, such shareholder has agreed not to Transfer any shares of Borrower’s stock to any Person whose ownership of the shares
would violate the California PC Law. The Shareholder Agreement is valid and binding on the sole shareholder and is enforceable
by Borrower against the sole shareholder. Lender is a third-party beneficiary of the Shareholder Agreement for so long as the Loan
is outstanding.

 

2.3           Subsidiaries.
Borrower does not have any Subsidiaries and it does not own of record or beneficially any Equity Securities of any Person other
than the Preferred Shares.

 

    	 	- 2 -	 

     

    

 

2.4           Authorization.
Borrower has full legal right, power and authority to enter into this Agreement, the Note and the Security Agreement and to perform
the transactions contemplated hereby and thereby. All corporate action on the part of Borrower and its directors and shareholders
for the authorization, execution and delivery of, and the performance of all obligations of Borrower under the Loan Documents has
been duly taken. Each of this Agreement, the Note and the Security Agreement has been duly authorized, executed and delivered by
Borrower and is a valid and binding agreement on the part of Borrower, enforceable in accordance with its terms. The performance
of each Loan Document and the consummation of the transactions contemplated by each Loan Document will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under, (a) any Borrower Contract, (b) the Organizational
Documents of Borrower, or (c) any Law. No consent, approval, authorization or order of, or qualification with, any Governmental
Authority having jurisdiction over Borrower or over its properties or assets is required for the execution and delivery of this
Agreement and the consummation by Borrower of the transactions herein contemplated.

 

2.5           Actions
and Orders. Neither Borrower nor any of its assets is subject to any pending Action and there is no threatened Action against
Borrower or any of its assets. Borrower is not subject to any outstanding Order.

 

2.6           Capitalization.
Borrower has outstanding one thousand (1,000) shares of Common Stock, and no other shares of capital stock. All of the outstanding
shares of Borrower are owned of record by Thomas Lam, M.D. There are no Stock Equivalents of Borrower outstanding.

 

2.7           Assets
and Liabilities. Prior to the date hereof, Borrower had no assets, operations or liabilities.

 

2.8           Contracts.
Borrower is not a party to any Contract except for the Loan Documents, the Contracts related to its purchase of the Preferred Shares,
and the Permitted Agreements.

 

2.9           Permits.
Borrower has all Permits necessary for the conduct of its business.

 

2.10         Compliance
with Laws. Borrower is in compliance with all Laws and is not in violation of any Law.

 

3.           Representations,
Warranties and Agreements of Lender.

 

Lender represents
and warrants to, and agrees with, Borrower as follows:

 

3.1           Lender
is acquiring the Note for Lender’s own account, for investment purposes only.

 

3.2           Lender
understands that an investment in the Note involves a high degree of risk, and Lender represents that it has the financial ability
to bear the economic risk of this investment in the Note, including a complete loss of such investment.

 

    	 	- 3 -	 

     

    

 

3.3           Lender
is an “accredited investor” as that term is defined in Rule 501(a) under Regulation D promulgated pursuant
to the Securities Act.

 

3.4           Lender
understands that the issuance and sale of the Note has not been registered under the Securities Act or under any state securities
laws.

 

3.5           Lender
has received all the information Lender considers necessary or appropriate for deciding whether to invest in the Note, and Lender
has had an opportunity to ask questions and receive answers from Borrower and its members regarding the business, prospects and
financial condition of Borrower.

 

4.           Covenants.

 

For so long as the Note
is outstanding, Borrower agrees that, unless Lender waives compliance therewith in writing, it shall comply with the following
covenants and agreements:

 

4.1           Borrower
shall preserve, renew and maintain in full force and effect its corporate or organizational existence and take all reasonable action
to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business;

 

4.2           Borrower
shall use the proceeds of the Loan solely to purchase the Preferred Shares and for no other purpose;

 

4.3           Borrower
shall provide to Lender as soon as practicable, but in any event within 20 days after the end of each month, a balance sheet of
Borrower as at the end of such month and an income statement of Borrower for such month and the year-to-date, which financial statements
shall be prepared from the books and records of Borrower maintained in the ordinary course of business, and shall fairly present
the financial condition and results of operations of Borrower as of the date thereof and for the periods then ended;

 

4.4           Borrower
shall provide prompt notice to Lender of: (a) any Material Adverse Change; and (b) any Action filed or threatened to
be filed against Borrower and any Action proposed to be filed by Borrower;

 

4.5           Borrower
shall not borrow any funds or incur any debts or liabilities except for: (a) the Note, (b) income taxes payable on its income;
and (c) operating expenses incurred in the ordinary course of business;

 

4.6           Borrower
shall not grant or permit a Lien on any of its assets or properties;

 

4.7           Borrower
shall not issue any Equity Securities;

 

4.8           Borrower
shall not Transfer any Preferred Shares;

 

4.9           Borrower
shall not merge or consolidate with or into any other Person;

 

4.10         Borrower
shall not declare or pay and dividends or distributions on its capital stock or redeem any capital stock;

 

    	 	- 4 -	 

     

    

 

4.11         Borrower
shall not make any payments of any type to the shareholder of Borrower, other than reimbursement of costs and expenses in the ordinary
course of business;

 

4.12         Borrower
shall comply with applicable Laws;

 

4.13         Borrower
shall not violate the California PC Law or take, or permit to be taken, any action that would cause Borrower not to be in compliance
with the California PC Law;

 

4.14         Borrower
shall file all returns for, and shall pay, all Taxes on or before the date due;

 

4.15         Borrower
shall not agree to any amendment of the Shareholder Agreement or waive any of its rights under the Shareholder Agreement;

 

4.16         Borrower
shall keep proper books of records and accounts, in which full, true and correct entries in all material respects and in any event
in conformity with GAAP and all applicable Laws shall be made of all dealings and transactions and assets in relation to its business
and activities;

 

4.17         Borrower
shall permit Lender to visit and inspect any of its properties and examine and make abstracts from any of its books and records
at any reasonable time and as often as may be desired and to discuss its business operations, properties and financial and other
condition with its officers, employees, consultants, and representatives; and

 

4.18         Promptly
upon the request of Lender, Borrower shall do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register
any and all such further acts, deeds, conveyances, pledge agreements, mortgages, deeds of trust, trust deeds, assignments, financing
statements and continuations thereof, termination statements, notices of assignments, transfers, certificates, assurances and other
instruments as the Lender, may require from time to time in order to:

 

(a)       carry
out more effectively the purposes of the Loan Documents;

 

(b)       to
the fullest extent permitted by applicable law, subject the Borrower’s properties, assets, rights or interests to the Liens
now or hereafter intended to be covered by the Security Agreement and the other Loan Documents;

 

(c)       perfect
and maintain the validity, effectiveness and priority of the Liens intended to be created under the Security Agreement and the
other Loan Documents; and

 

(d)       assure,
convey, grant, assign, transfer, preserve, protect and confirm more effectively to the Lender, the rights granted or now or hereafter
intended to be granted to the Lender under any Loan Document or under any other instruments executed in connection with any Loan
Document to which the Borrower is or is to be a party.

 

    	 	- 5 -	 

     

    

 

5.            Default
and Remedies.

 

5.1          Events
of Default. Any of the following shall constitute an “Event of Default” under this Agreement:

 

(a)       Borrower
fails to make any payment on the Loan when due;

 

(b)       Any
representation or warranty by Borrower made in any Loan Document, or which is contained in any certificate, document or financial
or other statement by Borrower, furnished at any time under this Agreement, or in or under any other Loan Document, shall prove
to have incorrect in any material respect on or as of the date made or on the Funding Date;

 

(c)       Borrower
breaches any covenant or agreement under any Loan Document;

 

(d)       Any
shareholder of Borrower Transfers any shares of capital stock of Borrower unless the Transfer was approved in writing by Lender;

 

(e)       Borrower
makes a general assignment for the benefit of creditors, or consents to the appointment of a trustee of a receiver, or admits in
writing its inability to pay its debts as they mature; or

 

(f)       A
proceeding of bankruptcy, reorganization, insolvency or liquidation is initiated by or against Borrower.

 

5.2          Rights
and Remedies. Upon the occurrence of an Event of Default and during the continuance of an Event of Default, Lender shall have,
in addition to all other rights and remedies that Lender may have under applicable law or in equity or under this Agreement and
the Security Agreement, the following rights and remedies, all of which may be exercised with or without notice to Borrower and
without affecting the obligations of Borrower hereunder or under any other Loan Document, declare all obligations, whether evidenced
by this Agreement or the Note or by any of the other Loan Documents, immediately due and payable.

 

5.3          Default
Interest. Upon the occurrence of an Event of Default and during the continuance of an Event of Default, the interest rate on
the Loan shall be the then-current rate of interest plus five percent (5%).

 

6.            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, email 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 to the
attention of the CEO of the recipient or another designee identified on the signature page (or if by email, to the latest email
address the sender has for the recipient or, if the recipient is an entity, for the officer or other person designated to receive
notices). 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.

 

    	 	- 6 -	 

     

    

 

7.            Entire
Agreement. This Agreement contains the sole and entire agreement and understanding of the parties with respect to the entire
subject matter of this Agreement, and any and all prior discussions, negotiations, commitments and understandings, whether oral
or otherwise, related to the subject matter of this Agreement are hereby merged herein.

 

8.            Successors.
This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors,
heirs and personal representatives.

 

9.            Assignment.
Borrower may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of
Lender. Lender may assign its rights hereunder without the consent of Borrower.

 

10.          Waiver.
No failure of any party to exercise any right or remedy given to such party under this Agreement or any other Loan Document or
otherwise available to such party or to insist upon strict compliance by any other party with its obligations hereunder or thereunder,
and no custom or practice of the parties in variance with the terms hereof or thereof, shall constitute a waiver of any party’s
right to demand exact compliance with the terms hereof or thereof, unless such waiver is set forth in writing and executed by such
party. Any such written waiver shall be limited to those items specifically waived therein and shall not be deemed to waive any
future breaches or violations or other non-specified breaches or violations unless, and to the extent, expressly set forth therein.

 

11.          Amendments.
This Agreement may be amended only by a written agreement executed by the parties to this Agreement.

 

12.          Governing
Law. The validity and interpretation of this Agreement, and the terms and conditions set forth herein, shall be construed
and interpreted in accordance with and governed by the laws of the State of California, without giving effect to any provisions
relating to conflict of laws.

 

13.          Execution.
This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.
If any signature is delivered by facsimile transmission or by email delivery of a “pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “pdf” signature page were an original thereof.

 

14.          Headings;
References. The headings of the several sections of this Agreement are inserted for convenience only and shall not in any
way affect the meaning or construction of any provision of this Agreement.

 

15.          Attorneys’
Fees. In any action to enforce any of the terms in this Agreement, the party who is determined to be the prevailing party
shall be entitled to its reasonable attorneys’ fees incurred in connection with same.

 

    	 	- 7 -	 

     

    

 

16.         Usury.
This Agreement and the Note are exempt from California usury laws pursuant to Section 25118(b) of the California Corporations Code.
Lender and Borrower , or any of their respective officers, directors, or controlling persons, have a preexisting personal or business
relationship (as defined in Section 25118(g) of the California Corporations Code), or Lender and Borrower, by reason of their own
business and financial experience could reasonably be assumed to have the capacity to protect their own interests in connection
with the transaction contemplated by this Agreement and the Note (as defined in Section 25118(g) of the California Corporations
Code). Notwithstanding the foregoing, in the event the interest provisions hereof or any exactions provided for herein or in the
other Loan Documents or any other instrument securing the Note shall result, because of any reduction of principal, or for any
reason at any time during the life of the Note, in any effective rate of interest which, for any month, transcends the limit of
any usury law applicable to the Note, all sums in excess of those lawfully collectible as interest for the period in question shall,
without further agreement or notice between or by any party hereto, be applied upon principal immediately upon receipt of such
moneys by Lender, with the same force and effect as though the payor had specifically designated such extra sums to be so applied
to principal and Lender had agreed to accept such extra payment as a premium-free prepayment, so that in no event shall Lender
receive or be entitled to receive interest (or any amount treated as interest under applicable Law) in excess of the maximum amount
permitted under applicable Law.

 

17.         Rules
of Construction. Except as otherwise expressly provided in this Agreement, the following rules shall apply hereto:

 

17.1         the
singular includes the plural and the plural includes the singular;

 

17.2         any
pronoun shall include the corresponding masculine, feminine and neuter forms;

 

17.3         “or”
is not exclusive and “include” and “including” are not limiting;

 

17.4         a
reference to any Contract includes permitted supplements, amendments and other modifications;

 

17.5         a
reference to a Law includes any amendment or modification of such Law and the rules or regulations issued thereunder;

 

17.6         a
reference to a Person includes its permitted successors and assigns in the applicable capacity;

 

17.7         a
reference in this Agreement to a Section, clause, recital or Exhibit is to the Section, clause, recital or Exhibit of this Agreement
unless otherwise expressly provided;

 

17.8         words
such as “hereunder,” “hereto,” “hereof,” and “herein”
and other words of like import shall, unless the context clearly indicates to the contrary, refer to the whole of this Agreement
and not to any particular Section or clause hereof;

 

17.9         all
obligations under this Agreement are continuing obligations throughout the term of this Agreement;

 

17.10      any
right in this Agreement may be exercised at any time and from time to time;

 

17.11       the
headings of the Articles and Sections are for convenience and shall not affect the meaning of this Agreement;

 

17.12       time
is of the essence in performing all obligations.

 

    	 	- 8 -	 

     

    

 

IN WITNESS WHEREOF, Borrower
and Lender have caused this Agreement to be executed as of the date first above written.

 

	Borrower:	Lender:
	 	 
	AP-AMH MEDICAL CORPORATION	APOLLO MEDICAL HOLDINGS, INC.

	 	 	 

	By: 	/s/ Thomas S. Lam, M.D.	 	By:	/s/ Mitchell Kitayama
	Thomas S. Lam, M.D.,	 	Name:	 Mitchell Kitayama
	Chief Executive Officer	 	Title:	 Independent Committee Director

 

	Address:	By:	/s/ Eric Chin
	1668 S. Garfield Ave., 2nd Floor	Name:	 Eric Chin
	Alhambra, CA 91801	Title:	 Chief Financial Officer

 

	 	Address:
	 	1668 S. Garfield Avenue, 2nd Floor
	 	Alhambra, CA 91801

 

[Signature Page to Apollo
Loan Agreement]

 

    	 	S-1	 

     

    

 

EXHIBIT A

To 

Loan Agreement

 

Definitions

 

“Action”
shall mean any lawsuit, litigation, action, demand, mediation, arbitration, investigation, suit, proceeding, arbitration or claim
before any court, Governmental Authority or quasi-judicial body (such as an arbitrator or alternative dispute resolution body or
agency), whether formal or informal, civil, criminal, administrative or investigative.

 

“California GCL”
shall mean the General Corporation Law of the State of California.

 

“California PC
Law” shall mean Sections 13400-13410 of the California GCL.

 

“Certificate of
Determination” shall have the meaning set forth in the recitals.

 

“Collateral”
shall have the meaning ascribed to such term in the Security Agreement.

 

“Contract”
shall mean any written or oral note, bond, debenture, mortgage, license, agreement, commitment, contract or understanding.

 

“Default”
shall mean the occurrence of any one or more of the Events of Default and the determination by Lender that Lender will exercise
the remedies available to Lender by reason thereof.

 

“Equity Securities”
of any Person shall mean the capital stock, membership interests or other equity securities of such Person and/or any Stock Equivalents
of such Person.

 

“Event(s) of Default”
shall mean the occurrence of an event specified in Section 5.1.

 

“Funding Date”
means the date on which the Loan is funded by Lender.

 

“Governmental
Approval” means any (a) Permit, concession, approval, consent, ratification, permission, clearance, confirmation, exemption,
waiver, franchise, certification, designation, rating, registration, variance, qualification, accreditation or authorization issued,
granted, given or otherwise made available by or under the authority of any Governmental Authority or pursuant to any Law; or (b)
right under any Contract with any Governmental Authority.

 

“Governmental
Authority” shall mean any nation or government, any state or other political subdivision thereof, a public body or authority,
and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government,
whether domestic or foreign, or national, regional, state or local.

 

    			 

     

    

 

“Law”
shall mean any foreign, federal, state or local statute, law, rule, regulation, ordinance, order, code, policy or rule of common
law, now or hereafter in effect, and in each case as amended, and any judicial or administrative interpretation thereof by a Governmental
Authority or otherwise, including any order, consent, decree or judgment of any Governmental Authority.

 

“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien
(statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement
of any kind or nature whatsoever.

 

“Loan”
shall mean the loan made by Lender to Borrower pursuant to this Agreement.

 

“Loan Documents”
shall mean this Agreement, the Note, the Security Agreement and all and certificates delivered by or on behalf of Borrower pursuant
to this Agreement, instruments issued pursuant thereto, all other instruments delivered by Borrower to Lender in connection with
the Loan and all extensions, renewals and modifications thereof.

 

“Material Adverse
Change” means (a) a material adverse change in the business, prospects, operations, results of operations, assets, liabilities
or condition (financial or otherwise) of Borrower, (b) a material impairment of the ability of Borrower to perform its obligations
under the Loan Documents to which it is a party or of Lender’s ability to enforce the Obligations or realize upon the Collateral,
or (c) a material impairment of the enforceability or priority of Lender’s Liens with respect to the Collateral as a result
of an action or failure to act on the part of Borrower.

 

“Note”
shall mean the Note dated the date hereof executed and delivered by Borrower in connection with this Agreement.

 

“Obligations”
shall have the meaning ascribed to such term in the Security Agreement.

 

“Order”
shall mean any order, ruling, decision, verdict, decree, writ, subpoena, mandate, precept, command, directive, consent, approval,
award, judgment, injunction, or other similar determination or finding by, before, or under the supervision of any Governmental
Authority, arbitrator, or mediator.

 

“Organizational
Documents” shall mean the articles or certificate of incorporation and bylaws of a corporation, as amended.

 

“Permit”
shall mean any permit, license, certificate, approval, consent, notice, waiver, franchise, registration, filing, accreditation,
or other similar authorization required by any Law, Governmental Authority or Contract.

 

“Permitted Agreements”
means the Tradename Licensing Agreement between Lender and Borrower, that certain Administrative Services Agreement between Network
Medical Management, Inc. and Borrower, and that certain Special Purpose Shareholder Agreement between Borrower and APC.

 

“Person”
shall mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association,
any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing, or other entity.

 

    			 

     

    

 

“Pledged Shares”
shall have the meaning ascribed to such term in the Security Agreement.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Security Agreement”
means the Security Agreement made by Borrower in favor of Lender, dated as of the date hereof, as the same may be amended, amended
and restated, supplemented or otherwise modified from time to time to the extent permitted under this Agreement.

 

"Stock Equivalents”
of any Person shall mean options, warrants, calls, rights, commitments, convertible securities and other securities pursuant to
which the holder, directly or indirectly, has the right to acquire (with or without additional consideration) capital stock or
equity of such Person.

 

“Taxes”
shall mean all taxes, charges, fees, levies or other governmental assessments, including, without limitation, all net income, gross
income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, withholding, payroll, employment, unemployment,
social security (including any social security charge or premium) excise, estimated, alternative minimum, severance, stamp, occupation,
property or other taxes, customs, dues, fees, assessments or charges of any kind whatsoever, together with any interest and any
penalties, additions to tax or additional amounts imposed by any taxing authority (federal, state, local or foreign).

 

“Termination Date”
shall mean September 30, 2019.

 

“Transfer”
shall mean sell, assign, pledge, assign or otherwise transfer, with or without consideration.

 

    			 

     

    

 

EXHIBIT E

To 

Loan Agreement

 

Conditions Precedent

 

The obligation of Lender
to fund the Loan as provided for in this Agreement is subject to the fulfillment, to the satisfaction of Lender, of each of the
following conditions precedent:

 

(a)          the
Funding Date shall occur on or before the Termination Date;

 

(b)          the
representations and warranties of Borrower set forth in this Agreement, or any of the other Loan Documents, shall be true and correct
in all respects on and as of the date made and as of the Funding Date as if made on the date thereof (except to the extent such
representation or warranty specifies an earlier date);

 

(c)          Borrower
shall have performed in all respects all obligations and covenants required to be performed by it under this Agreement and any
other Loan Document prior to the Funding Date;

 

(d)       no
Law shall be in effect which prohibits or materially restricts the consummation of the transactions contemplated by this Agreement
and the other Loan Documents at the Funding Date, and no Action is pending or threatened in writing by a Governmental Authority
which is likely to result in a Law having such an effect;

 

(e)           Borrower
shall have obtained all consents of Governmental Authorities required to consummate the transactions contemplated by this Agreement
and the other Loan Documents, in form and substance satisfactory to Lender;

 

(f)           unless
waived as provided in the Apollo Stock Purchase Agreement, Lender shall have received proceeds of its loan from a financial
institution in an amount sufficient to fund the Loan on the Funding Date;

 

(g)          Borrower
and APC shall have executed and delivered a stock purchase agreement, dated on or about the date of this Agreement (the “Series
A Preferred Shares Purchase Agreement”), pursuant to which APC shall issue and sell to Borrower the Preferred Shares,
and the only remaining condition to the closing under the Series A Preferred Shares Purchase Agreement shall be the funding of
the Loan by Lender and Borrower and APC must be ready to close under the Series A Preferred Shares Purchase Agreement concurrently
with the funding of the Loan on the Funding Date;

 

(h)          APC
and Lender shall have executed and delivered a stock purchase agreement, dated on or about the date of this Agreement (the “Apollo
Stock Purchase Agreement”), pursuant to which Lender shall issue and sell to APC shares of its Common Stock, and the
only remaining condition to the closing under the Apollo Stock Purchase Agreement shall be the funding of the Loan by Lender and
APC and Lender must be ready to close under the Apollo Stock Purchase Agreement concurrently with the funding of the Loan on the
Funding Date;

 

    			 

     

    

 

(i)            Borrower,
Lender and APC shall have each obtained the requisite consent of its shareholders to consummate the transactions contemplated by
the Series A Preferred Stock Purchase Agreement, the Apollo Stock Purchase Agreement, this Agreement and the other Loan Documents;

 

(j)            Borrower
shall have filed Certificate of Determination with the California Secretary of State;

 

(k)           Lender
shall have received evidence that appropriate financing statements have been duly filed in such office or offices as may be necessary
or, in the opinion of Lender, desirable to perfect the Lender’s Liens in and to the Collateral, and Lender shall have received
searches reflecting the filing of all such financing statements;

 

(l)           Lender
shall be in possession of the certificate(s) evidencing the Pledged Shares, together with an assignment separate from stock certificated,
duly endorsed in blank by Borrower;

 

(m)          Lender
shall have received each of the following documents, in form and substance satisfactory to Lender, duly executed, and each such
document shall be in full force and effect:

 

(i)        this
Agreement and the other Loan Documents, and

 

(ii)       a
disbursement letter executed and delivered by Borrower to Lender regarding the Loan funding to be made on the Funding Date;

 

(n)          Lender
shall have received a certificate from the Secretary of Borrower (i) attesting to the resolutions of Borrower’s Board
of Directors authorizing its execution, delivery, and performance of this Agreement and the other Loan Documents, (ii) authorizing
specific officers of Borrower to execute the same, (iii) attesting to the incumbency and signatures of such specific officers of
Borrower, (iv) attaching a good standing certificate of recent date prior to the Funding Date from the California Secretary
of State and (v) certifying as to the matters described in paragraphs (a), (b), (c), (d), (e), (i) and (p) of this Exhibit
E;

 

(o)          unless
waived as provided in the Apollo Stock Purchase Agreement, Lender shall have completed its business, legal, and collateral due
diligence, including a collateral examination and review of Borrower and verification of Borrower’s representations and warranties
to Lender, the results of which must be satisfactory to Lender in its sole discretion;

 

(p)          since
December 31, 2018, there shall not have occurred any Material Adverse Change;

 

    			 

     

    

 

(q)       Lender
shall have received an opinion from its regulatory counsel as to certain regulatory matters relating to the transactions contemplated
by the Apollo Stock Purchase Agreement and related matters, and an opinion from its tax and investment company counsel as to certain
tax matters and the Investment Company Act of 1940, in each case satisfactory to Lender in its sole discretion;

 

(r)       unless
waived as provided in the Apollo Stock Purchase Agreement, Lender shall have received an opinion from its financial advisor satisfactory
to Lender in its sole discretion that the transactions contemplated by the Apollo Stock Purchase Agreement and related transactions
are fair to the stockholders of Lender from a financial point of view;

 

(s)       unless
waived as provided in the Apollo Stock Purchase Agreement, Lender and its advisors shall have completed an analysis of the tax
consequences of the transactions contemplated by this Agreement, the Apollo Stock Purchase Agreement and related transactions the
results of which are satisfactory to Apollo in its sole discretion; and

 

(t)       all
other documents and legal matters in connection with the transactions contemplated by this Agreement or as otherwise reasonably
requested by Lender shall have been delivered, executed, or recorded and shall be in form and substance satisfactory to Lender.Exhibit 10.2

 

 

SECURITY AGREEMENT

 

This SECURITY AGREEMENT
(“Agreement”) dated and effective as of ___________, 2019, is entered into by AP-AMH Medical Corporation, a
California professional medical corporation (“Debtor”), in favor of Apollo Medical Holdings, Inc., a Delaware
corporation (“Secured Party”), with reference to the following facts:

 

A.           Debtor
and Secured Party have entered into that certain Loan Agreement dated as of May 10, 2019 (the “Loan Agreement”),
pursuant to which Secured Party has made a loan to Borrower in the original principal amount of Five Hundred Forty Five Million
Dollars ($545,000,000), which loan is evidenced by that certain Secured Promissory Note, dated May 10, 2019, in the original
principal amount of the Loan (the “Note”).

 

B.           As
security for payment and performance of the obligations of Debtor to Secured Party under the Loan Agreement, the Note and this
Agreement, it is the intent of Debtor to grant to Secured Party and to create a security interest in Collateral (as defined below),
as hereinafter provided.

 

In consideration of the
above recitals, which are hereby incorporated into this Agreement, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Debtor hereby agrees as follows:

 

1.           Grant
of Security Interest. Debtor hereby creates and grants to Secured Party a security interest in the Collateral, as that term
is defined in Section 2, to secure payment and performance by Debtor of the Obligations, as that term is defined in Section
3.

 

2.           Collateral.
The “Collateral” shall consist, collectively and severally, of the following:

 

a.           All
of Debtor’s right, title and interest in and to the assets of Debtor, whether now owned or hereafter acquired, including
without limitation, all of Debtor’s right, title and interest in and to (i) all shares of Series A Preferred Stock (and any
other securities) of Allied Physicians of California, a Professional Medical Corporation, a California corporation doing business
as Allied Pacific Corporation (“APC”), now or hereafter owned by Debtor, together in each case with all certificates
representing the same, (ii) all shares, securities, moneys or other property representing a dividend on or a distribution or return
of capital on or in respect of the Pledged Shares, or resulting from a split-up, revision, reclassification or other like change
of the Pledged Shares or otherwise received in exchange therefor, and any warrants, rights or options issued to the holders of,
or otherwise in respect of, the Pledged Shares, and (iii) all shares of any successor entity of any such merger or consolidation
(collectively, the “Pledged Shares”); and

 

b.           All
proceeds of the foregoing Collateral. For purposes of this Agreement, the term “proceeds” includes whatever
is receivable or received when Collateral or proceeds are sold, collected, exchanged or otherwise disposed of, whether any such
action is voluntary or involuntary, and includes, without limitation, all rights to payment, including return premiums, with respect
to any insurance relating thereto.

 

     

     

    

 

3.           Obligations.
The “Obligations” shall consist, collectively and severally, of any and all debts, obligations and liabilities
of Debtor to Secured Party arising from, connected with or related to the Loan Agreement, the Note and this Agreement and all amendments,
modifications, extensions or renewals of the Loan Agreement, the Note and this Agreement, whether now existing or hereafter arising,
voluntary or involuntary, whether or not jointly owed with others, direct or indirect, absolute or contingent, liquidated or unliquidated,
and whether or not from time to time decreased or extinguished and later increased, created or incurred.

 

4.           Additional
Representations and Warranties. In addition to any representations and warranties of Debtor or its affiliates in Loan Agreement
and the Note, which are incorporated herein by this reference, Debtor hereby represents and warrants that: (a) except as heretofore
disclosed to Secured Party in writing, Debtor is the sole owner of the Collateral (or, in the case of after-acquired Collateral,
at the time Debtor acquires rights in the Collateral, will be the owner thereof) and no other person has (or, in the case of after-acquired
Collateral, at the time Debtor acquires rights therein, will have) any right, title, claim or interest (by way of security interest
or other lien or charge or otherwise) in, against or to the Collateral; and (b) all information heretofore, herein or hereafter
supplied to Secured Party by or on behalf of Debtor with respect to the Collateral is, or will be when so supplied, true and correct.

 

5.           Covenants
of Debtor. Debtor hereby agrees:

 

a.           to
do all acts that may be necessary to maintain, preserve and protect the Collateral;

 

b.           not
to use any Collateral or permit any Collateral to be used unlawfully or in violation of any provision of the Loan Agreement, this
Agreement or any applicable statute, regulation or ordinance or any policy of insurance covering Collateral;

 

c.           to
pay promptly when due all taxes, assessments, charges, encumbrances and liens now or hereafter imposed on or affecting any Collateral;

 

d.           to
notify Secured Party promptly of any change in Debtor’s name or place of business, or, if Debtor has more than one (1) place
of business, Debtor’s primary place of business;

 

e.           to
procure, execute and deliver from time to time any financing statements and other writings reasonably deemed necessary or appropriate
by Secured Party to perfect, maintain and protect its security interest hereunder and the priority thereof and, following an Event
of Default (as defined below), to deliver promptly to Secured Party all originals of Collateral or proceeds consisting of chattel
paper or instruments;

 

f.            to
appear in and defend any action or proceeding which may affect its title to or Secured Party’s interest in the Collateral;

 

g.           if
Secured Party gives value to enable Debtor to acquire rights in or the use of any Collateral, to use such value for such purpose;

 

    	 	2	 

     

    

 

h.           to
keep separate, accurate and complete records of the Collateral and to provide Secured Party with such records and such other reports
and information relating to the Collateral as Secured Party may reasonably request from time to time;

 

i.            not
to surrender or lose possession of (other than to Secured Party), sell, encumber, lease, rent, or otherwise dispose of or transfer
any Collateral or right or interest therein, except to keep the Collateral free of all levies and security interests or other liens
or charges except those created hereby and those approved in writing by Secured Party;

 

j.            following
an Event of Default, to account fully for and promptly deliver to Secured Party, in the form received, all proceeds of the Collateral
received, endorsed to Secured Party as appropriate, and until so delivered all proceeds shall be held by Debtor in trust for Secured
Party, separate from all other property of Debtor and identified as the property of Secured Party;

 

k.           to
keep the Collateral in good condition and repair;

 

l.            not
to cause or permit any waste or unusual or unreasonable depreciation of the Collateral;

 

m.          at
any reasonable time, on demand by Secured Party, to exhibit to and allow inspection by Secured Party (or persons designated by
Secured Party) of the Collateral;

 

n.           to
keep the Collateral at the location(s) set forth in Section 16 and not to remove the Collateral from such location(s) without
the prior written consent of Secured Party;

 

o.           to
comply with all laws, regulations and ordinances relating to the possession, operation, maintenance and control of the Collateral;

 

p.           if
any of the Pledged Shares are received by Debtor, to forthwith (i) deliver to Secured Party the certificates or instruments
representing or evidencing the same, duly endorsed in blank or accompanied by such instruments of assignment and transfer in such
form and substance as Secured Party may reasonably request, all of which thereafter shall be held by Secured Party, pursuant to
the terms of this Agreement, as part of the Collateral and (ii) take such other action as Secured Party may reasonably deem
necessary or appropriate to duly record or otherwise perfect the security interest created hereunder in such Collateral; and

 

q.           to
insure the Collateral, with Secured Party named as loss payee, in form and amounts, with companies, and against risks and liabilities,
reasonably required by Secured Party to protect the value of its security interest hereunder, and following an Event of Default:
(a) to assign the policies to Secured Party, (b) to deliver them to Secured Party at its request, and (c) to cooperate with and
assist Secured Party in making any claim thereunder, or in canceling the insurance, or in collecting and receiving payment of,
and endorse any instrument in payment of loss or return premium or other refund or return, and apply such amounts received, at
Secured Party’s election, to replacement of Collateral or to the Obligations; provided that in no event shall Secured Party
be deemed to have a security interest in insurance proceeds except to the extent solely arising from the Collateral, and if Secured
Party receives any other insurance proceeds, it will deliver such proceeds to the Debtor.

 

    	 	3	 

     

    

 

6.           Authorized
Action by Secured Party. Debtor hereby irrevocably appoints Secured Party, effective on the occurrence and continuance of an
Event of Default (as defined below), as its attorney-in-fact to do (but Secured Party shall not be obligated to do and shall incur
no liability to Debtor or any third party for failure to do) any act which Debtor is obligated by this Agreement to do, and to
(a) exercise such rights and powers as Debtor might exercise with respect to the Collateral, including, without limitation, the
right to collect by legal proceedings or otherwise and endorse, receive and receipt for all dividends, interest, payments, proceeds
and other sums and property now or hereafter payable on or on account of Collateral; (b) privileges or options pertaining to, or
deposit, surrender, accept, hold or apply other property in exchange for, Collateral; (c) insure, process and preserve the Collateral;
(d) transfer the Collateral to Secured Party’s own name or the name of a nominee of Secured Party; and (e) make any
compromise or settlement, and take any action it deems advisable, with respect to Collateral. Debtor agrees to reimburse Secured
Party on demand for any costs and expenses, including, without limitation, attorneys’ fees, Secured Party may incur while
acting as Debtor’s attorney-in-fact hereunder, all of which costs and expenses are included in the Obligations. It is further
agreed that such care as Secured Party gives to the safekeeping of its own property of like kind shall constitute reasonable care
of the Collateral when in Secured Party’s possession; provided, however, that Secured Party shall not be required
to make any presentment, demand or protest, or give any notice and need not take any action to preserve any rights against any
prior party or any other person in connection with the Obligations or with respect to the Collateral.

 

7.           Pledged
Shares.

 

a.           All
Pledged Shares in which Debtor shall hereafter grant a security interest pursuant to this Agreement will be, duly authorized, validly
existing, fully paid and non assessable, and none of such Pledged Shares are or will be subject to any contractual restriction,
or any restriction under the charter, by laws, shareholders agreement or other organizational instrument of APC or any other issuer
thereof, upon the transfer of such Pledged Shares (except for any such restriction contained herein or under such organizational
instruments).

 

b.           All
certificates, agreements or instruments representing or evidencing the Pledged Shares in existence on the date hereof will have
been delivered to Secured Party in a suitable form for transfer by delivery or accompanied by duly executed instruments of transfer
or assignment in blank and (assuming continuing possession by Secured Party of all such Pledged Shares) Secured Party has a perfected
first priority security interest therein.

 

c.           So
long as no Event of Default shall have occurred and be continuing, Debtor shall have the right to exercise all voting, consensual
and other powers of ownership pertaining to the Pledged Shares for all purposes not inconsistent with the terms of the Loan Agreement,
the Note, this Agreement, or any other instrument or agreement referred to herein or therein, provided that Debtor agrees that
it will not vote the Pledged Shares in any manner that is inconsistent with the terms of the Loan Agreement, the Note, this Agreement
or any such other instrument or agreement; and Secured Party shall execute and deliver to Debtor or cause to be executed and delivered
to Debtor all such proxies, powers of attorney, dividend and other orders, and all such instruments, without recourse, as Debtor
may reasonably request for the purpose of enabling Debtor to exercise the rights and powers that they are entitled to exercise
pursuant to this Section 7(c).

 

d.           Unless
and until an Event of Default shall have occurred and be continuing, Debtor shall be entitled to receive and retain any dividends,
distributions or proceeds on the Pledged Shares paid in cash out of earned surplus.

 

    	 	4	 

     

    

 

e.           If
an Event of Default shall have occurred and be continuing, whether or not Secured Party exercises any available right to declare
any Obligations due and payable or seek or pursue any other relief or remedy available to them under applicable law or under the
Loan Agreement, the Note, this Agreement or any other agreement relating to such Obligation, all dividends and other distributions
on the Pledged Shares shall be paid directly to Secured Party and retained by it as part of the Collateral, subject to the terms
of this Agreement, and, if Secured Party shall so request in writing, Debtor agrees to execute and deliver to Secured Party appropriate
additional dividend, distribution and other orders and documents to that end, provided that if such Event of Default is cured,
any such dividend or distribution theretofore paid to Secured Party shall, upon request of Debtor (except to the extent theretofore
applied to the Obligations), be returned by Secured Party to Debtor.

 

f.            Debtor
hereby expressly authorizes and instructs each issuer of any Pledged Shares pledged hereunder to (i) comply with any instruction
received by it from Secured Party in writing that (A) states that an Event of Default has occurred and is continuing and (B) is
otherwise in accordance with the terms of this Agreement, without any other or further instructions from Debtor, and Debtor agrees
that such issuer shall be fully protected in so complying and (ii) unless otherwise expressly permitted hereby, pay any dividend
or other payment with respect to the Pledged Shares directly to Secured Party for the benefit of Secured Party.

 

g.           Notwithstanding
anything to the contrary in this Agreement, Lender shall take no action with respect to the Pledged Shares that would result in
Debtor having an ineligible shareholder under the laws relating to the corporate practice of medicine in the State of California.

 

    	 	5	 

     

    

 

8.           Default
and Remedies.

 

a.           Debtor
shall be deemed in default under this Agreement if Debtor fails to comply with any of the provisions of Sections 5
or 7, or fails to comply with any provision required of Debtor or its affiliates under the Loan Agreement, the Note or this
Agreement or commits an Event of Default thereunder, for ten (10) days after Debtor’s receipt of written notice of any monetary
default or fifteen (15) days after Debtor’s receipt of written notice of any non-monetary default (an “Event of
Default”); provided, however, that, if such failure is of such nature as to not be curable within said
fifteen (15) day period, an Event of Default shall occur if the breaching or failing party shall have failed to commence curative
action within the prescribed fifteen (15) day period and prosecuted the same with due diligence to completion thereafter but in
no event beyond thirty (30) days after Debtor’s receipt of the default notice. On the occurrence of any Event of Default,
Secured Party may, at its option, after providing notice to Debtor, and in addition to all rights and remedies available to Secured
Party and its affiliates under the Loan Agreement, the Note or this Agreement, do any one (1) or more of the following: (i) foreclose
or otherwise enforce Secured Party’s security interest in any manner permitted by law or provided in this Agreement, subject
to the rights of senior lienholders; (ii) sell, lease or otherwise dispose of any Collateral at one (1) or more public or private
sales, whether or not such Collateral is present at the place of sale, for cash or credit or future delivery, on such terms and
in such manner as Secured Party may determine; (iii) recover from Debtor all costs and expenses, including, without limitation,
reasonable attorneys’ fees, incurred or paid by Secured Party in exercising any right, power or remedy provided by this Agreement
or by law; (iv) require Debtor to assemble the Collateral and make it available to Secured Party at a place to be designated
by Secured Party; (v) enter onto property where any Collateral is located and take possession thereof with or without judicial
process; (vi) require Debtor to cause the Pledged Shares to be transferred of record into the name of Secured Party or its
nominee; and (vii) prior to the disposition of the Collateral, store, process, repair or recondition it or otherwise prepare it
for disposition in any manner and to the extent Secured Party deems appropriate and in connection with such preparation and disposition,
without charge, use any trademark, service mark, trade name, copyright, patent or technical process used by Debtor.

 

b.           Debtor
recognizes that Secured Party may be compelled, at any time after the occurrence and during the continuance of an Event of Default,
to conduct any sale of all or any part of the Pledged Shares without registering or qualifying such Pledged Shares under the Securities
Act of 1933, as amended (the “Securities Act”), and/or any applicable state securities laws in effect at such
time. Debtor acknowledges that any such private sales may, to the extent permitted by applicable law, be made in such manner and
under such circumstances as Secured Party may deem necessary or advisable in its sole and absolute discretion, including at prices
and on terms that might be less favorable than those obtainable through a public sale without such restrictions (including, without
limitation, a public offering made pursuant to a registration statement under the Securities Act), and, notwithstanding such circumstances,
agrees that any such sale shall not be deemed not to have been made in a commercially reasonable manner solely because it was conducted
as a private sale, and agrees that Secured Party shall have no obligation to conduct any public sales and no obligation to delay
the sale of any Pledged Shares for the period of time necessary to permit its registration for public sale under the Securities
Act and applicable state securities laws, and shall not have any responsibility or liability as a result of its election so not
to conduct any such public sales or delay the sale of any Pledged Shares, notwithstanding the possibility that a substantially
higher price might be realized if the sale were deferred until after such registration. To the extent permitted by applicable law,
Debtor hereby waives any claims against Secured Party arising by reason of the fact that the price at which any Pledged Shares
may have been sold at any private sale was less than the price that might have been obtained at a public sale or was less than
the aggregate amount of the Obligations, even if Secured Party accepts the first offer received and does not offer such Pledged
Shares to more than one offeree. Debtor agrees that a breach of any of the covenants contained in this Section 8 will
cause irreparable injury to Secured Party, that Secured Party has no adequate remedy at law in respect of such breach and, as a
consequence, that each and every covenant contained in this Section 8 shall be specifically enforceable against Debtor.

 

    	 	6	 

     

    

 

9.           Cumulative
Rights. The rights, powers and remedies of Secured Party and its affiliates under this Agreement shall be in addition to all
rights, powers and remedies given to Secured Party by virtue of any statute or rule of law, the Loan Agreement, the Note or this
Agreement or any other agreement, all of which rights, powers and remedies shall be cumulative and may be exercised successively
or concurrently without impairing Secured Party’s security interest in the Collateral.

 

10.         Waiver.
Any forbearance or failure to act or delay by Secured Party in exercising any right, power or remedy shall not preclude the further
exercise thereof, and every right, power or remedy of Secured Party shall continue in full force and effect until such right, power
or remedy is specifically waived in a writing executed by Secured Party. Debtor waives any right to require Secured Party to proceed
against any person or to exhaust any Collateral or to pursue any remedy in Secured Party’s power.

 

11.         Further
Actions. Debtor shall deliver promptly to Secured Party all certificates or instruments representing or evidencing any Collateral
to be held as Collateral shall be in form suitable for transfer by delivery and shall be delivered together with undated appropriate
endorsements or other necessary instruments of registration, transfer or assignment, duly executed and in form and substance satisfactory
to Secured Party, and in each case together with such other instruments or documents as Secured Party may reasonably request.

 

12.         Binding
on Successors. All rights of Secured Party under this Agreement shall inure to the benefit of its successors and assigns, and
all obligations of Debtor shall bind its heirs, executors, administrators, successors and assigns.

 

13.         Entire
Agreement; Severability; Amendments. This Agreement, together with the Loan Agreement and the Note, contains the entire agreement
between Secured Party and Debtor relating to the matters described herein. If any of the provisions of this Agreement shall be
held invalid or unenforceable, this Agreement shall be construed as if not containing those provisions and the rights and obligations
of the parties hereto shall be construed and enforced accordingly. This Agreement may not be altered, amended, or modified, nor
may any provision hereof be waived or noncompliance therewith consented to, except by means of a writing executed by Debtor and
Secured Party. Any such alteration, amendment, modification, waiver, or consent shall be effective only to the extent specified
therein and for the specific purpose for which given. No course of dealing and no delay or waiver of any right or default under
this Agreement shall be deemed a waiver of any other, similar or dissimilar, right or default or otherwise prejudice the rights
and remedies hereunder.

 

14.         References.
The singular includes the plural. If more than one executes this Agreement, the term Debtor shall be deemed to refer to each of
the undersigned as well as to all of them, and their obligations and agreements hereunder shall be joint and several. If any of
the undersigned is a married person, recourse may be had against his or her separate property for the Obligations.

 

15.         Choice
of Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California, without regard
to its choice of law provisions, and, where applicable and except as otherwise defined herein, terms used herein shall have the
meanings given them in the California Uniform Commercial Code.

 

    	 	7	 

     

    

 

16.         Collateral
Location; Records. Debtor represents that the Collateral described in Section 2(a) is located at Secured Party’s
offices at 1668 S. Garfield Ave, 2nd Floor, Alhambra, CA 91801, and that Debtor’s records regarding the Collateral are kept
at 1668 S. Garfield Ave, 2nd Floor, Alhambra, CA 91801.

 

17.         Notices.
Any notice required or permitted to be give hereunder shall be given in accordance with the applicable provisions of the Loan Agreement.

 

[Signatures appear on the following page.]

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF,
this Security Agreement has been duly executed by Debtor and Secured Party on and as of the date first above written.

 

	 	DEBTOR:
	 	 
	 	AP-AMH MEDICAL CORPORATION,
	 	a California professional medical corporation
	 	 
	 	By:	                
	 	Name:	 
	 	Title:	 
	 	 	 
	 	SECURED PARTY:
	 	 
	 	APOLLO MEDICAL Holdings, Inc.,
	 	a Delaware corporation
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	S-1

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