Document:

Exhibit 10.3

 

AMENDMENT TO AGREEMENT AND PLAN OF MERGER

 

This Amendment to Agreement
and Plan of Merger (this “Amendment”) is made and entered into as of March 30, 2017 by and among Apollo Medical
Holdings, Inc., a Delaware corporation (“Parent”), Apollo Acquisition Corp., a California corporation (“Merger
Sub”), Network Medical Management, Inc., a California corporation (the “Company”), and Kenneth Sim,
M.D. (the “Shareholders’ Representative”). Parent, Merger Sub, the Company and the Shareholders’
Representative shall sometimes be referred to herein collectively as the “Parties” and individually as a “Party.”
Capitalized terms used herein have the meanings ascribed to them in ‎Article XIII of the Merger Agreement.

 

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

 

WHEREAS, Section 12.6
of the Merger Agreement provides that the Merger Agreement may not be amended except by a written amendment signed by all of the
Parties thereto; and

 

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

 

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

 

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

 

“(ii)        Subject
to Sections 2.1(b)(i) and 2.8, each Company Share issued and outstanding immediately prior to the Effective Time
shall be converted into the right to receive such number of fully paid and nonassessable Parent Shares that would result in the
Shareholders having a right to receive an aggregate number of Parent Shares immediately following the Effective Time that represents
eighty-two percent (82%) of the total issued and outstanding Parent Shares immediately following the Effective Time, assuming there
are no Dissenting Shareholder Interests as of the Effective Time (the “Exchange Ratio”). Notwithstanding the
foregoing, and for the avoidance of doubt, for purposes of calculating the Exchange Ratio, the aggregate number of Parent Shares
held by the Shareholders immediately following the Effective Time shall exclude (i) any Parent Shares owned by the Shareholders
immediately prior to the Effective Time, (ii) the Parent Warrants, and (iii) any Parent Shares issued or issuable to the Shareholders
pursuant to the exercise of the Parent Warrants. Notwithstanding the foregoing, and for the avoidance of doubt, for purposes of
calculating the Exchange Ratio, the total number of issued and outstanding Parent Shares immediately following the Effective Time
shall exclude four hundred ninety-nine thousand (499,000) Parent Shares issued or issuable pursuant to the Securities Purchase
Agreement dated as of March 30, 2017, between Parent and Alliance Apex, LLC (the “Purchase Agreement”). All
such Company Shares, when so converted, shall no longer be outstanding and shall automatically be cancelled and shall cease to
exist, and each holder of a certificate that immediately prior to the Effective Time represented any such Company Shares (each,
a “Certificate”) and each holder of Company Shares held in book-entry form shall, in each case, cease to have
any rights with respect thereto, except the right to receive the Merger Consideration and any cash in lieu of fractional Parent
Shares to be issued or paid in consideration therefor, and any rights to which holders of Company Shares become entitled in accordance
with Section 3.16.”

 

     

     

    

 

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

 

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

 

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

 

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

 

		·	Eight hundred fifty thousand (850,000) warrants of the Parent exercisable at eleven dollars ($11.00) per share (the “Closing
Warrant Payment” and together with the Closing Share Payment, the “Closing Payment”).”

 

3.            Amendment
to Section 2.4(b). Section 2.4(b) of the Merger Agreement is hereby amended and restated as follows:

 

“(b)        Deposit
of Merger Consideration. At or prior to the Effective Time, Parent shall deposit with the Exchange Agent, in trust for the
benefit of the Shareholders, in accordance with this Article II and through the Exchange Agent, sufficient cash, the Closing
Warrant Payment and Parent Shares to make all other deliveries pursuant to this Article II; provided, however,
that if the Closing Payment shall for any reason not include sufficient cash, warrants or Parent Shares to make all such deliveries,
upon notice thereof from the Exchange Agent to Parent, at or prior to the Effective Time, Parent shall from time to time promptly
deposit with the Exchange Agent sufficient cash, warrants and Parent Shares to make such Closing Payment. Any cash, warrants or
Parent Shares deposited with the Exchange Agent shall be collectively referred to as the “Exchange Fund.””

 

    	-	-2-	 

     

    

 

4.            Amendment
to Section 2.15. Section 2.15 of the Merger Agreement is hereby amended and restated as follows:

 

“2.15      Consideration
Spreadsheet. At least three (3) Business Days before the Closing Date, the Company shall prepare and deliver to Parent a spreadsheet
(the “Consideration Spreadsheet”), certified by the President of the Company, which shall set forth, as of the
Closing Date, (i) such Person’s address and, if available to the Company, social security number (or tax identification number,
if applicable), (ii) the number of Company Shares held by such Person, (iii) the respective certificate number(s) representing
such Company Shares, (iv) the respective date(s) of acquisition of such Company Shares, (v) the Pro Rata Portion applicable to
such Person, (vi) the number of Parent Shares issuable to such Person at the Closing in respect of such Company Shares, (vii) the
number of Parent Shares comprising the Holdback Shares on behalf of such Person, (viii) the number of warrants of Parent (from
the Closing Warrant Payment) issuable to such Person at the Closing based on the Pro Rata Portion applicable to such Person, (ix)
any amounts required to be withheld and (x) such other information relevant thereto or that Parent may reasonably request.”

 

5.           Amendment
to Section 6.3(c)(i). Section 6.3(c)(i) of the Merger Agreement is hereby amended and restated as follows:

 

“(i)         deposit
of the Closing Payment in such manner as designated by the Exchange Agent;”

 

6.            Amendment
to Section 13.1. The following definitions are hereby added to Section 13.1 of the Merger Agreement:

 

“Closing Payment”
has the meaning set forth in Section 2.3.

 

“Closing Warrant Payment”
has the meaning set forth in Section 2.3.

 

“Purchase Agreement”
has the meaning set forth in Section 2.1(b)(ii).

 

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

 

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

 

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

 

    	-	-3-	 

     

    

 

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

 

[Signature Page Follows]

 

    	-	-4-	 

     

    

 

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

 

	PARENT: 	Apollo Medical Holdings, Inc., a Delaware corporation
	 	 
	 	By: /s/ Warren Hossenion
	 	Name: Warren Hosseinion, M.D.
	 	Title: Chief Executive Officer
	 	 
	MERGER SUB:	Apollo Acquisition Corp., a California corporation
	 	 
	 	By:  /s/ Warren Hosseinion
	 	Name: Warren Hosseinion, M.D.
	 	Title:  Chief Executive Officer
	 	 
	THE COMPANY:	Network Medical Management, Inc., a California corporation
	 	 
	 	By:  /s/ Thomas Lam
	 	Name:  Thomas Lam
	 	Title:  CEO
	 	 
	SHAREHOLDERS’ REPRESENTATIVE:	/s/ Kenneth Sim
	 	Kenneth Sim, M.D.Exhibit

PROPRIETARY AND CONFIDENTIAL

27 March 2017

PRIVATE & CONFIDENTIAL

Alex Gourlay
108 Wilmot Road
Deerfield, IL 60015

Dear Alex,
Extension to your Assignment to Walgreen Co.
This letter is to confirm the extension of your secondment to Walgreen Co. under the secondment letter agreement dated 26 September 2013 between you and Walgreens Boots Alliance Services Limited (formerly Alliance Boots Management Services Ltd.), as previously extended per letter agreement dated 27 January 2016 (collectively, the “Agreement”).  This extension is for an additional 12 months, with an end date of 31 July 2017, and subject to the following modifications to the Agreement: 

		
	1.
	Paragraph 1 of the Agreement is amended to reflect your current title, Co-Chief Operating Officer of Walgreens Boots Alliance, Inc. (“WBA”), reporting directly to the Chief Executive Officer of WBA.

		
	2.
	Paragraph 6(a) of the Agreement is amended to reflect your current annual rate of salary, £704,330.

All other assignment terms and conditions remain unchanged, as detailed in the Agreement.

Please sign below to confirm that you have read, understand and agree to this extension of the Agreement.

Yours sincerely,

/s/ Kathleen Wilson-Thompson

Kathleen Wilson-Thompson,
Executive Vice President - Global Chief Human Resources Officer, WBA
Signed on behalf of Walgreens Boots Alliance Services Limited

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PROPRIETARY AND CONFIDENTIAL

I confirm that I have read, understand and agree to be bound by the contents of this extension letter.

Alex Gourlay

/s/ Alex Gourlay
...................................................
Signed

...3/29/17.........................................................
Date signed

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