Document:

Exhibit 10.3

 

TRADENAME LICENSING AGREEMENT

 

This TRADENAME LICENSING
AGREEMENT (this “Agreement”) is dated as of May 10, 2019, by and between Apollo Medical Holdings, Inc., a Delaware
corporation, whose address is 1668 S. Garfield Ave., 2nd Floor, Alhambra, CA 91801 (“Apollo”), and AP-AMH
Medical Corporation, a California professional medical corporation, whose address is 1668 S. Garfield Ave., 2nd Floor,
Alhambra, CA 91801 (“AP-AMH”).

 

Recitals:

 

A.         AP-AMH
is a professional medical corporation. AP-AMH and Network Medical Management, Inc. (“NMM”) have entered into a certain
Administrative Services Agreement dated as of May 10, 2019 (the “Services Agreement”).

 

B.          In
order to enhance its name recognition and facilitate the marketing of its services, AP-AMH desires to obtain from Apollo, and Apollo
desires to grant to AP-AMH a nonexclusive license to use the name, “Apollo Medical Associates.”

 

NOW, THEREFORE, in consideration
of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which the parties hereby
acknowledge, the parties agree as follows:

 

Agreement:

 

1.           License
of Tradename to AP-AMH. Apollo hereby licenses to AP-AMH the nonexclusive, non-sublicensable, non-transferable (expect as permitted
pursuant to Section 4.2) and royalty-bearing right to use the name “Apollo Medical Associates” which shall only be
used to market AP-AMH’s services, and for no other purpose (the “Tradename License”). The exact manner of the
use of such name by AP-AMH shall be subject to Apollo’s prior written approval. AP-AMH shall not make any use of the name
 “Apollo Medical Associates” in any marketing or advertising or in making business proposals to entities with which
AP-AMH seeks to conduct business or does conduct business unless such marketing, advertising or business proposals are in accordance
with the marketing, advertising or business plan adopted by AP-AMH and approved by Apollo.

 

1.1          Protection
of Apollo Rights.

 

1.1.1           Non-exclusivity
and Ownership. The Tradename License is nonexclusive. Apollo retains the right to license the name “Apollo Medical Associates”
to others in the State of California and elsewhere, and to use the name “Apollo Medical Holdings” in connection with
all Apollo operations and functions. Furthermore, AP-AMH acknowledges that the names “Apollo Medical Holdings” and
 “Apollo Medical Associates” are valuable assets of Apollo which are unique and have an established secondary meaning
and goodwill throughout the United States and the world. Apollo retains all copyright, trademark and trade name rights in the name
 “Apollo Medical Holdings” and “Apollo Medical Associates,” and AP-AMH shall not acquire any right, title
or interest in the name “Apollo Medical Holdings” and/or “Apollo Medical Associates.” AP-AMH shall not
at any time during or after the term of this Agreement assert or claim any interest in, or do anything which may adversely affect
the validity or enforceability of, any trademark, trade name, copyright or logo belonging to or licensed to Apollo (including any
act, or assistance to any act, which may infringe or lead to the infringement of any intellectual property/proprietary right in
the name “Apollo Medical Holdings” and/or “Apollo Medical Associates”).

 

    	 	- 1 -	 

     

    

 

1.1.2           Quality
Control. AP-AMH shall use intellectual property licensed under the Tradename License in a manner and to a standard that is
equal or better than the quality control standards and specifications applied by Apollo.

 

1.1.3           Reservation
of Rights. No rights are granted to AP-AMH hereunder except as expressly granted herein (including by implication or estoppels),
and all rights in the intellectual property owned by Apollo not expressly granted hereunder are reserved to Apollo.

 

2.           Tradename
License Fee. As a fee for the Tradename License, AP-AMH shall pay to Apollo a fee (the “Tradename License Fee”)
in United States dollars equal to the “Tradename License Fee Percentage,” multiplied by the gross revenues received
by AP-AMH on an accrual basis during each calendar quarter during the term hereof (or portion thereof if the “Commencement
Date,” as defined below, falls on a day other than the first day of a calendar quarter). The Tradename License Fee applicable
to each calendar quarter (or portion thereof) shall be paid on the first day of each calendar quarter immediately succeeding the
calendar quarter in which the Tradename License Fee is measured; provided that the payment of any and all Tradename License
Fees shall be subject to the receipt by AP-AMH of the “Series A Dividend.” As used herein:

 

(a)          “Tradename
License Fee Percentage” means the percentage specified on Schedule 1 attached hereto.

 

(b)          “Series
A Dividend” shall have the meaning set forth in that certain Certificate of Determination of Preferences of Series A
Preferred Stock of Allied Physicians of California, A Professional Medical Corporation, as filed with the California Secretary
of State.

 

2.2          Annual
Review of Tradename License Fee. The Tradename License Fee Percentage set forth above will be reviewed annually (commencing
one year from the Commencement Date) to ensure that (i) the intended underlying economic arrangements between AP-AMH and Apollo
are preserved, and (ii) the Tradename License Fee accurately compensates Apollo for the value of the Tradename License. If changes
in state or federal laws or regulations, or changes in the amount or method of reimbursing healthcare services, result in a material
adverse change in the economic benefits of this Agreement to AP-AMH or Apollo, the fee set forth above shall be equitably adjusted
on or before December 31 of the year such change takes place. If the parties agree to a modification of the Tradename License Fee,
the parties shall make that modification by mutual written consent. Such adjustment of the Tradename License Fee may apply retroactively
if the Parties agree in writing to the retroactive effective date.

 

    	 	- 2 -	 

     

    

 

3.           Term
and Termination.

 

3.1          Term.
Unless sooner terminated pursuant to the terms of this Agreement, the term of this Agreement shall run concurrently and be coterminous
with the term of the Services Agreement. In furtherance of the foregoing, the term of this Agreement shall commence on the commencement
date of the Services Agreement (the “Commencement Date”), and shall end on the termination or expiration of the Services
Agreement.

 

3.2          Termination
of Tradename License. Notwithstanding anything herein to the contrary, Apollo may at its option terminate the Tradename License
upon the occurrence of any of the following events as follows:

 

(a)          Upon
the mutual written agreement of AP-AMH and Apollo.

 

(b)          Effective
immediately upon (i) AP-AMH’s violation of any applicable law, rule or regulation that would result in loss or suspension
of licensure; or (ii) Apollo’s determination that the health, safety or welfare of any individual receiving services from
AP-AMH may be in jeopardy.

 

(c)          Effective
immediately upon the liquidation, winding-up and dissolution of AP-AMH.

 

(d)          Effective
immediately upon the termination of the Services Agreement.

 

(e)          Effective
immediately upon written notice by Apollo to AP-AMH if AP-AMH materially breaches any term, covenant or condition hereof or violates
any of its representations and warranties contained herein and fails to cure such breach or violation within ninety (90) calendar
days after notice of said material breach or violation has been given to AP-AMH by Apollo, or such longer period of time as may
be reasonably needed to effectuate a cure of such breach.

 

(f)          Effective
immediately in the event of the filing of a petition in voluntary bankruptcy or an assignment for the benefit of creditors by AP-AMH,
or upon other action taken or suffered, voluntarily or involuntarily, under any federal or state law for the benefit of debtors
by AP-AMH, except for the filing of a petition in involuntary bankruptcy against AP-AMH which is dismissed within one hundred twenty
(120) days thereafter.

 

3.3          Effect
of Termination.

 

3.3.1           Immediately
upon termination of the Tradename License, AP-AMH shall cease using the name “Apollo Medical Associates” and every
variation and portion of it, in every respect (including but not limited to signage), and AP-AMH shall not make any reference on
its letterhead or other materials to its former or then current affiliation with Apollo or its former license or use of said name.

 

    	 	- 3 -	 

     

    

 

3.3.2           Upon
termination, this Agreement shall be of no further force or effect and the parties shall be relieved and discharged of any future
or continuing obligations arising hereunder, except for (i) the satisfaction of any covenant or performance of any obligation remaining
outstanding as of the date of termination, (ii) the satisfaction or performance of any covenant or obligation which by its terms
extends beyond the termination of this Agreement and (iii) any liability or obligation which at the time of such termination shall
have already accrued to the other party or which thereafter may accrue in respect of any act or omission occurring prior to such
termination (including, without limitation, any accrued and unpaid fees).

 

4.           Miscellaneous.

 

4.1          No
Representations or Warranties. Each of the parties hereto acknowledges and agrees that (i) THE TRADENAME LICENSE IS PROVIDED
 “AS-IS” AND THAT NO REPRESENTATION OR WARRANTY OF ANY KIND IS MADE BY Apollo OR BY ANY OF ITS LICENSORS, AGENTS, EMPLOYEES,
REPRESENTATIVES OR ATTORNEYS WITH RESPECT TO THEM AND THAT ALL IMPLIED WARRANTIES ARE HEREBY DISCLAIMED; (ii) this Agreement is
not being entered into on the basis of, or in reliance on, any promise or representation, express or implied, other than such as
are set forth expressly in this Agreement; and (iii) it has been represented by legal counsel of its own choice in this matter
or has affirmatively elected not to be represented by legal counsel.

 

4.2          Assignment.
Except as otherwise provided in this Agreement, AP-AMH shall not consummate an Assignment (defined as the direct or indirect transfer
of equity interests of AP-AMH and a direct or indirect change of control of AP-AMH shall constitute such transfer) or otherwise
assign any rights or delegate any duties under this Agreement without the prior written consent of Apollo. For purposes of this
Agreement (including this Section 4.2), any change in the control or management of AP-AMH shall be deemed an assignment. Any unauthorized
attempted or purported assignment by AP-AMH shall be null and void ab initio and of no force or effect. Apollo, without
any need to obtain AP-AMH’s consent, may at any time during the term of this Agreement, assign this Agreement to any affiliate
or successor in interest.

 

4.3          Successors
and Assigns. Subject to the provisions against assignment as set forth in the preceding Section, the rights and obligations
of the parties to this Agreement shall bind and inure to the benefit of the successors and permitted assigns of the parties.

 

4.4          Notices.
All notices, requests, demands and other communications required or permitted to be given under this Agreement shall be in writing
and shall be delivered to the party to whom notice is to be given either (i) by personal delivery (in which case such notice shall
be deemed to have been duly given on the date of delivery), (ii) by Federal Express or similar next business day air courier service
(in which case such notice shall be deemed given on the business day following the date of deposit with the air courier service),
or (iii) by first class United States mail, registered or certified, return receipt requested, postage prepaid (in which case such
notice shall be deemed given on the third (3rd) day following the date of deposit in the mail), and properly addressed to the party
on whom notice is to be delivered at the following addresses, or any changed address sent to the other parties hereto in accordance
with the notice delivery requirements set forth above:

 

    	 	- 4 -	 

     

    

 

	To Apollo:	To AP-AMH:
	 	 
	Apollo Medical Holdings, Inc.	AP-AMH Medical Corporation
	1668 S. Garfield Ave., 2nd Floor	1668 S. Garfield Ave., 2nd Floor
	Alhambra, CA 91801	Alhambra, CA 91801
	Attn: CEO	Attn: CEO

 

4.5          No
Waiver. No waiver of any provision of this Agreement shall be deemed to have been given by reason of any delay by a party in
enforcing any provision of this Agreement. Any waiver of a provision under this Agreement shall be accomplished only by a written
notice signed by the party making the waiver. A waiver to any one provision or a waiver to any particular default shall not constitute
a continuing waiver in the future to any future default of that provision, unless the written waiver expressly specifies otherwise.

 

4.6          Validity.
If for any reason any clause or provision of this Agreement or the application of any such clause or provision in a particular
context or to a particular situation, circumstance or person, is held unenforceable, invalid or in violation of law by any court
or other tribunal, then the application of such clause or provision in contexts or to situations, circumstances or persons other
than that in or to which it is held unenforceable, invalid or in violation of law shall not be affected thereby, and the remaining
clauses and provisions hereof shall nevertheless remain in full force and effect. Upon such determination that any term or other
provision is unenforceable, invalid or in violation of law, the parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

4.7          Effect
of Headings. The titles or headings of the various paragraphs hereof are intended solely for convenience of reference and are
not intended and shall not be deemed to modify, explain or place any construction upon any of the provisions of this Agreement.

 

4.8          Counterparts.
This Agreement may be executed in counterparts by the parties hereto. All counterparts shall be construed together and shall constitute
one agreement. A signature transmitted by facsimile shall be treated as an original signature.

 

4.9          Governing
Law. This Agreement shall be interpreted and controlled by the laws of the State of California.

 

4.10       Attorney’s
Fees and Costs. In the event of any action, arbitration or other proceedings between or among the parties hereto with respect
to this Agreement, the non-prevailing party or parties to such action, arbitration or proceedings shall pay to the prevailing party
or parties all costs and expenses, including reasonable attorneys’ fees, incurred in the defense or prosecution thereof by
the prevailing party or parties. The party which is a “prevailing party” shall be determined by the arbitrator(s) or
judge(s) hearing the matter and shall be the party who is entitled to recover his, her or its costs of suit, whether or not the
matter proceeds to a final judgment, decree or determination. A party not entitled to recover his, her or its costs of suit shall
not recover attorneys’ fees. If a prevailing party or parties shall recover a decision, decree or judgment in any action,
arbitration or proceeding, the costs and expenses awarded to such party may be included in and as part of such decision, decree
or judgment.

 

    	 	- 5 -	 

     

    

 

4.11       Approvals.
Whenever this Agreement refers to the approval of a party or the mutual agreement of the parties, such approval or agreement shall
be evidenced by a writing signed by an authorized representative of the party or parties.

 

4.12       Amendments.
Any amendments, modifications, supplements or other changes to this Agreement shall be effective only if made in writing and signed
by the parties.

 

4.13       Agreement
to Perform Necessary Acts. Each party shall perform any and all further acts and shall execute and deliver any further documents
which may be reasonably necessary to carry out the provisions of this Agreement.

 

4.14        Enforcement.
Because of the unique nature and importance of the tradename “Apollo Medical Associates,” the parties hereto acknowledge
that monetary damages will not be adequate and that Apollo will be irreparably damaged in the event that the covenants and restrictions
contained in this Agreement are breached by any person subject hereto. Accordingly, the parties hereto agree that all of the terms
of this Agreement shall be specifically enforceable and that, in addition, Apollo shall be entitled to the immediate remedy of
a temporary restraining order or preliminary injunction and other temporary or permanent injunctive or equitable relief to restrain
or enjoin a breach of this Agreement. These remedies shall be cumulative and shall be in addition to any other remedy which may
be available to Apollo. In addition, because of the unique nature and value of the tradenames to Apollo, Apollo shall have the
unqualified right to specific performance of AP-AMH’s covenants attendant to the termination of the licenses to avoid substantial
damages which would be very difficult and burdensome to estimate or compensate by the payment of money damages and shall also be
entitled to the immediate remedy of a temporary restraining order or preliminary injunction and other temporary or permanent injunctive
or equitable relief to restrain or enjoin a breach of this Agreement or to specifically enforce the provisions hereof.

 

4.15        Entire
Agreement. This Agreement and all other agreements executed on the same date hereof constitute all of the agreements between
the parties, and supersede and replace and all other prior agreements, negotiations and understandings between the parties with
respect to the topics covered by this Agreement. For avoidance of doubt, the Services Agreement is incorporated by reference herein
in its entirety.

 

4.16        No
Third Party Beneficiaries. Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies
on any person other than the parties to this Agreement.

 

4.17        Referrals.
The parties hereby acknowledge that none of the benefits to Apollo, AP-AMH or any of their respective affiliates, is conditioned
on any requirement that Apollo, AP-AMH or any of their respective affiliates make referrals to, be in a position to make or influence
referrals to, or otherwise generate business for Apollo, AP-AMH or any of their respective affiliates.

 

    	 	- 6 -	 

     

    

 

4.18        Ambiguities.
The general rule that ambiguities are to be construed against the drafter shall not apply to this Agreement. In the event that
any provision of this Agreement is found to be ambiguous, each party shall have an opportunity to present evidence as to the actual
intent of the parties with respect to such ambiguous provision.

 

[Signatures follow on next
page]

 

    	 	- 7 -	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed as of the date set forth above.

 

	“Apollo”	 	“AP-AMH”
	 	 	 	 
	APOLLO MEDICAL HOLDINGS, INC.	 	AP-AMH MEDICAL CORPORATION
	 	 	 
	By:	/s/ Mitchell Kitayama	 	By:	/s/ Thomas S. Lam, M.D.
	Name:	Mitchell Kitayama	 	 	Thomas S. Lam, M.D.,
	Title:	Independent Committee Director	 	 	Chief Executive Officer

 

 

	By:	/s/ Eric Chin	 	 
	Name:	Eric Chin	 	 
	Title:	Chief Financial Officer	 	 

  

    	 	- 8 -Exhibit 10.4

 

ADMINISTRATIVE SERVICES AGREEMENT

 

This ADMINISTRATIVE SERVICES
AGREEMENT (this “Agreement”) is dated as of May 10, 2019, by and between NETWORK MEDICAL MANAGEMENT, INC., a California
corporation, whose address is 1668 S. Garfield Ave., 2nd Floor, Alhambra, CA 91801 ("Manager”), and AP-AMH
MEDICAL CORPORATION, a California professional medical corporation, whose address is 1668 S. Garfield Ave., 2nd Floor,
Alhambra, CA 91801 (“AP-AMH”), with reference to the following facts:

 

Recitals:

 

A.          AP-AMH
is a professional corporation and is the sole shareholder of all of the issued and outstanding shares of Series A Preferred Stock
(the “Preferred Shares”) of Allied Physicians of California, A Professional Medical Corporation (“Allied”).

 

B.           The
rights, preferences, privileges and restrictions of Allied and AP-AMH with respect to the Preferred Shares are set forth in (i)
that certain Certificate of Determination of Preferences of Series A Preferred Stock of Allied Physicians of California, A Professional
Medical Corporation (the “Certificate of Determination”), as filed with the California Secretary of State; and (ii)
that certain Special Purpose Shareholder Agreement of Allied Physicians of California, A Professional Medical Corporation between
Allied and AP-AMH as the holder of the Preferred Shares (the “Shareholder Agreement”).

 

C.           AP-AMH
has an interest as the owner of the Preferred Shares in protecting the “Healthcare Services Assets” (as defined in
the Certificate of Determination). In furtherance thereof, AP-AMH desires to engage and Manager desires to provide certain administrative
services to AP-AMH in connection with its interests in the Preferred Shares and the Healthcare Services Assets.

 

Agreement:

 

NOW, THEREFORE, in consideration
of the mutual covenants, conditions and promises set forth herein, and for such other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.           Duties
And Responsibilities of Manager.

 

1.1           Oversight
Duties Regarding the Preferred Shares and the Healthcare Services Assets. Manager or its affiliates, designees, employees or
agents shall be responsible for overseeing, monitoring, inspecting and auditing, as applicable, Allied’s compliance with
its obligations under the Certificate of Determination and the Shareholder Agreement for the purpose of safeguarding and preserving
AP-AMH’s interests in the Preferred Shares and the Healthcare Services Assets. In furtherance of the foregoing, Manager shall
be responsible for the following:

 

    	 		 

     

    

 

(a)       Dividend
Receivable Processing. Reviewing, processing, auditing and collection of the “Series A Dividend” (as defined in
the Certificate of Determination).

 

(b)       Documentation
and Collection. AP-AMH agrees to keep and provide to Manager all documents, opinions, diagnoses, recommendations, and other
evidence and records necessary for the oversight, inspection, accounting and auditing of the Series A Dividend payments.

 

(c)       Quarterly
Report. On or before the tenth (10th) day after each calendar quarter during the term of this Agreement until the expiration
of this Agreement, Manager shall furnish AP-AMH with a statement of all Series A Dividend payments for the previous calendar quarter.

 

1.2           Administrative
Services. AP-AMH hereby appoints Manager and Manager shall serve as the exclusive administrator of all daily business functions
of AP-AMH. AP-AMH agrees that the purpose and intent of this Agreement is to relieve AP-AMH to the maximum extent possible of the
administrative, accounting, and other business aspects of its business, with Manager assuming responsibility and being given all
necessary authority to perform these functions. Manager shall have the sole authority to perform the administrative, accounting
and business aspects of AP-AMH as set forth herein. AP-AMH hereby appoints Manager to be its true and lawful attorney-in-fact to
incur and pay all expenses in connection with the operation of its business, including but not limited to, payment of Manager’s
Administrative Fee and to perform all functions in the name and on behalf of AP-AMH. Manager will have no authority, directly or
indirectly, to perform, and will not perform, any medical function. Manager may, however, advise AP-AMH as to the relationship
between AP-AMH’s performance of medical functions and the overall administrative and business functioning of AP-AMH. In furtherance
of the foregoing, Manager shall be responsible for the following:

 

(a)       Records
Maintenance. Maintenance, custody and supervision of business records, papers, documents, ledgers, journals and reports relating
to the business operations of AP-AMH. At all times during and after the term of this Agreement, including any extensions or renewals
hereof, all records relating in any way to the business operations of AP-AMH shall at all times be the property of Manager, including,
without limitation, business records, business agreements, books of account, general administrative records and all information
generated under or contained in the management information system pertaining to Manager’s obligations hereunder, and other
business information of any kind or nature.

 

(b)       Accounting.
Administration of accounting procedures, controls, forms and systems.

 

(c)       Financial
Reporting. Preparation of financial reports, as appropriate or reasonably requested by AP-AMH, reflecting the business operations
of AP-AMH.

 

(d)       Financial
Planning. Financial planning for the business operations of AP-AMH.

 

    	 	- 2 -	 

     

    

 

(e)       Annual
Budgets. Preparing on an annual basis, and presenting to AP-AMH in January of each year subsequent to the date of this Agreement
for AP-AMH’s approval, an annual operating and capital budget for AP-AMH.

 

2.            Administrative
Fee. AP-AMH and Manager hereby acknowledge that Manager will incur substantial costs and expenses in fulfilling Manager’s
obligations to AP-AMH. In connection therewith, the following provisions shall apply:

 

2.1           Administrative
Fee. As a fee for the administrative services furnished by Manager to AP-AMH hereunder, AP-AMH shall pay to Manager a fee (the
 “Administrative Fee”) in United States dollars equal to the “Administrative Fee Percentage,” multiplied
by the gross revenues received by AP-AMH on an accrual basis during each calendar quarter during the term hereof (or portion thereof
if the “Commencement Date,” as defined below, falls on a day other than the first day of a calendar quarter). The Administrative
Fee applicable to each calendar quarter (or portion thereof) shall be paid on the first day of each calendar quarter immediately
succeeding the calendar quarter in which the Administrative Fee is measured; provided that the payment of any and all Tradename
License Fees shall be subject to the receipt by AP-AMH of the “Series A Dividend.” As used herein:

 

(a)       “Administrative
Fee Percentage” means the percentage specified on Schedule 1 attached hereto.

 

(b)       “Series
A Dividend” shall have the meaning set forth in the Certificate of Determination.

 

2.2            Annual
Review of Administrative Fee. The Administrative Fee Percentage set forth above will be reviewed annually (commencing one year
from the Commencement Date) to ensure that (i) the intended underlying economic arrangements between AP-AMH and Manager are preserved,
and (ii) the Administrative Fee accurately compensates Manager for the value of the administrative services provided by Manager
hereunder. If changes in state or federal laws or regulations, or changes in the amount or method of reimbursing healthcare services,
result in a material adverse change in the economic benefits of this Agreement to AP-AMH or Manager, the fee set forth above shall
be equitably adjusted on or before December 31 of the year such change takes place. If the parties agree to a modification of the
Administrative Fee, the parties shall make that modification by mutual written consent. Such adjustment of the Administrative Fee
may apply retroactively if the Parties agree in writing to the retroactive effective date.

 

3.           Conduct
of Medical Practice. AP-AMH shall be solely and exclusively in control of all aspects of the practice of medicine and the
provision of professional medical services to their patients, including all medical training and medical supervision of licensed
personnel, and Manager shall neither have nor exercise any control or discretion over the methods by which AP-AMH shall practice.
Manager’s sole function is to render to AP-AMH in a competent, efficient and reasonably satisfactory manner, all administrative
services necessary to operate the business of AP-AMH. The rendition of all professional medical services including, but not limited
to, diagnosis, treatment and the prescription of medicine and drugs, and the supervision and preparation of medical records and
reports shall be the sole responsibility of AP-AMH.

 

    	 	- 3 -	 

     

    

 

4.           Insurance.
Manager shall obtain and maintain, in full force and effect during the term of this Agreement, at its sole cost and expense, comprehensive
general liability insurance coverage, including and errors and omissions insurance coverage, with an insurance carrier reasonably
acceptable to AP-AMH, under which Manager shall be named as the insured and AP-AMH as an additional insured, to protect against
any liability incident to the rendering of services under this Agreement. Such insurance coverage shall not be less than One Million
Dollars ($1,000,000) for any one person and Three Million Dollars ($3,000,000) in the annual aggregate. Such policies of insurance
shall provide that AP-AMH shall receive written notice not less than thirty (30) days prior to the cancellation or material change
in coverage. At AP-AMH’s request, Manager shall furnish certificates, endorsements and copies of all insurance policies to
AP-AMH.

 

5.           Indemnification.
Each party shall indemnify, defend and hold harmless the other party from any and all liability, loss, claim, lawsuit, injury,
cost, damage or expense whatsoever (including reasonable attorneys’ fees and court costs) arising out of, incident to, or
in any manner occasioned by the performance or non-performance of any duty or responsibility under this Agreement by such indemnifying
party, or any of their employees, agents, contractors or subcontractors; provided, however, that neither party shall be liable
to the other party hereunder for any claim covered by third party insurance, except to the extent that the liability of such party
exceeds the amount of such insurance coverage.

 

6.           Term
and Termination.

 

6.1           Term.
Unless sooner terminated pursuant to the terms of this Agreement, the term of this Agreement shall commence upon the closing of
the acquisition by AP-AMH of the Preferred Shares (the “Commencement Date”), and shall end on the date on which AP-AMH
no longer owns any Preferred Shares.

 

6.2           Termination
by AP-AMH. At the election of AP-AMH, AP-AMH may terminate this Agreement immediately by written notice to Manager as follows:

 

(a)       In
the event of the filing of a petition in voluntary bankruptcy or an assignment for the benefit of creditors by Manager, or upon
other action taken or suffered, voluntarily or involuntarily, under any federal or state law for the benefit of debtors by Manager,
except for the filing of a petition in involuntary bankruptcy against Manager which is dismissed within ninety (90) days thereafter.

 

(b)       In
the event Manager shall materially default in the performance of any duty or obligation imposed upon it by this Agreement, and
such default shall remain uncured for a period of ninety (90) days after written notice thereof has been given to Manager by AP-AMH
or such longer period of time as may be reasonably needed to effectuate a cure of such default.

 

6.3           Termination
by Manager. At the election of Manager, Manager may terminate this Agreement immediately by written notice to AP-AMH as follows:

 

    	 	- 4 -	 

     

    

 

(a)       In
the event of the filing of a petition in voluntary bankruptcy or an assignment for the benefit of creditors by AP-AMH, or upon
other action taken or suffered, voluntarily or involuntarily, under any federal or state law for the benefit of debtors by AP-AMH,
except for the filing of a petition in involuntary bankruptcy against AP-AMH which is dismissed within ninety (90) days thereafter.

 

(b)       In
the event AP-AMH shall materially default in the performance of any duty or obligation imposed upon AP-AMH by this Agreement, and
such default shall continue for a period of ninety (90) days after written notice thereof has been given to AP-AMH by Manager or
such longer period of time as may be reasonably needed to effectuate a cure of such default.

 

6.4           Effect
of Termination. Upon termination, this Agreement shall be of no further force or effect and the parties shall be relieved and
discharged of any future or continuing obligation, debt or liability arising hereunder, except for (a) the satisfaction of any
covenant or performance of any obligation which shall have previously accrued and remain outstanding as of the date of termination,
including, without limitation, the payment of the Administrative Fee, or (b) the satisfaction or performance of any covenant or
obligation which by its terms extends beyond the termination of this Agreement, including, without limitation, indemnification
for acts or omissions arising prior to the date of termination.

 

7.           Exclusive
Arrangement. During the term of this Agreement, Manager shall be AP-AMH’s sole provider of the administrative services
described in this Agreement. During the term of this Agreement, AP-AMH shall not enter into any similar agreement with any administrative
services provider or any other entity.

 

8.           Confidential
Information And Trade Secrets.

 

8.1           Proprietary
Information. Manager and AP-AMH recognize that due to the nature of this Agreement, Manager and AP-AMH will have access to
information of a proprietary nature owned by the other party, including, but not limited to, any and all computer programs (whether
or not completed or in use), any and all operating manuals or similar materials that constitute the medical and/or non-medical
systems, policies and procedures, methods of doing business developed by such other party, administrative, advertising or marketing
techniques, financial affairs, and other information utilized by such other party. Consequently, Manager and AP-AMH acknowledge
and agree that the other party has a proprietary interest in all such information and that all such information constitutes confidential
and proprietary information and the trade secret property of such other party. Manager and AP-AMH hereby expressly and knowingly
waive any and all rights, title and interest in and to such trade secrets and confidential information and agrees to return all
copies, including in any electronic medium, of such trade secrets and confidential information related thereto to the other party
at the returning party’s expense upon the expiration or earlier termination of this Agreement.

 

    	 	- 5 -	 

     

    

 

8.2           Non-Disclosure.
Manager and AP-AMH further acknowledge and agree that the other party is entitled to prevent such other party’s competitors
from obtaining and utilizing its trade secrets and confidential information. Therefore, Manager and AP-AMH agree to hold the other
party’s trade secrets and confidential information in strictest confidence and to not disclose them or allow them to be disclosed,
directly or indirectly, to any person or entity other than those persons or entities who are employed by or affiliated with Manager
or AP-AMH, without the prior written consent of the other party. During the term of this Agreement, neither Manager nor AP-AMH
shall disclose to anyone, other than persons or entities who are employed by or affiliated with them (which affiliates shall be
designated in writing), any confidential or proprietary information or trade secret information obtained by Manager or AP-AMH from
the other party, except as otherwise required by law. After the expiration or earlier termination of this Agreement, Manager and
AP-AMH shall not disclose to anyone any confidential or proprietary information or trade secret information obtained from the other
party, except as otherwise required by law or upon the prior written consent of such other party.

 

8.3           Equitable
Relief. Manager and AP-AMH acknowledge and agree that a breach of this Section will result in irreparable harm to the other
party and that the other party cannot be reasonably or adequately compensated in damages, and therefore, the other party shall
be entitled to equitable remedies, including, but not limited to, injunctive relief, to prevent a breach and to secure enforcement
thereof in addition to any other relief or award to which the other party may be entitled.

 

9.           Miscellaneous.

 

9.1           Entire
Agreement; Amendment. This Agreement constitutes the full and complete agreement and understanding between the parties hereto
and shall supersede any and all prior written and oral agreements concerning the subject matter contained herein. This Agreement
may be modified or amended only by a written instrument executed by all of the parties hereto.

 

9.2           Assignment.
Except as otherwise provided in this Agreement, neither party shall assign any rights or delegate any duties under this Agreement
without the prior written consent of the other party. Any unauthorized attempted assignment by either party shall be null and void
and of no force or effect.

 

9.3           Confidentiality.
No party to this Agreement shall disclose this Agreement or the terms thereof to a third party, except as provided herein or as
otherwise required by law, without the prior written consent of the other parties.

 

9.4           Force
Majeure. Notwithstanding any provision contained herein to the contrary, Manager shall not be deemed to be in default hereunder
for failing to perform or provide any of the administrative services or other obligations to be performed or provided by Manager
pursuant to this Agreement if such failure is the result of any labor dispute, act of God, inability to obtain labor or materials,
governmental restrictions or any other event which is beyond Manager’s reasonable control.

 

9.5           No
Third Party Beneficiary. None of the provisions contained in this Agreement are intended by the parties nor shall they be deemed
to confer any benefit on any person not a party to this Agreement.

 

    	 	- 6 -	 

     

    

 

9.6           Changes
In Law And Severability. In the event any state or federal laws or regulations, now existing or enacted or promulgated after
the effective date of this Agreement, are interpreted by judicial decision, a regulatory agency or legal counsel in such a manner
as to indicate that the structure of this Agreement may be in violation of such laws or regulations, the parties shall amend this
Agreement as necessary. To the maximum extent possible, any such amendment shall preserve the underlying economic and financial
arrangements between the parties. If the parties are unable to agree to any amendments required by this Section, the matter shall
be submitted to dispute resolution in accordance with Section 9.8 below. Further, if any provision of this Agreement is determined
to be illegal, invalid, or otherwise unenforceable by court, arbitrator, or other tribunal of competent jurisdiction, then to the
extent not covered by the preceding paragraph and to the extent necessary to make such provision and/or this Agreement legal, valid,
or otherwise enforceable, such provisions shall be limited, construed, or severed and deleted from this Agreement, and the remaining
portion of such provision and the remaining other provisions hereof, shall survive, remain in full force and effect, and continue
to be binding, and shall be interpreted to give effect to the intention of the parties insofar as that is possible.

 

9.7           Referrals.
The parties hereby acknowledge that none of the benefits to Manager, AP-AMH or any of their respective affiliates, is conditioned
on any requirement that Manager, AP-AMH or any of their respective affiliates make referrals to, be in a position to make or influence
referrals to, or otherwise generate business for Manager, AP-AMH or any of their respective affiliates.

 

9.8           Dispute
Resolution. In the event of any controversy or dispute related to or arising out of this Agreement, the parties agree to meet
and confer in good faith to attempt to resolve the controversy or dispute without an adversary proceeding. If the controversy or
dispute is not resolved to the mutual satisfaction of the parties within five (5) business days of notice of the controversy or
dispute, the parties agree to waive their rights, if any, to a jury trial, and to submit the controversy or dispute as a general
reference to a retired judge or justice pursuant to Section 638 et seq. of the California Code of Civil Procedure, or any successor
provision, for resolution in accordance with Chapter 6 (References and Trials by Referees), of Title 8 of Part 2 of the California
Code of Civil Procedure, or any successor chapter. The parties agree that the only proper venue for the submission of claims is
the County of Los Angeles, California, and that the hearing before the referee shall be concluded within nine (9) months of the
filing and service of the complaint. The parties reserve the right to contest the referee’s decision and to appeal from any
award or order of any court. The provisions of this Section shall not limit, require the postponement of implementation, or in
any other way preclude the exercise of any rights otherwise enjoyed by any party to this Agreement under the provisions hereof.

 

9.9           Governing
Law. This Agreement shall be governed by and interpreted under the internal laws of the State of California without regard
to its conflicts of interest laws.

 

    	 	- 7 -	 

     

    

 

9.10          Independent
Contractors. In the performance of this Agreement, it is mutually understood and agreed that AP-AMH is at all times acting
and performing as independent contractors with, and not as employees, joint ventures or lessees of, Manager. AP-AMH shall have
no claim under this Agreement or otherwise against Manager for workers’ compensation, unemployment compensation, sick leave,
vacation pay, pension or retirement benefits, Social Security benefits, or any other employee benefits, all of which shall be the
sole responsibility of AP-AMH. Except as specifically requested in writing by AP-AMH, Manager shall not withhold on behalf of AP-AMH
any sums for income tax, unemployment insurance, Social Security or otherwise pursuant to any law or requirement of any government
agency, and all such withholding, if any is required, shall be the sole responsibility of AP-AMH. AP-AMH shall indemnify and hold
harmless Manager from any and all loss or liability, if any, arising out of or with respect to any non-payment of such taxes or
withholdings by AP-AMH.

 

9.11         Headings.
The headings set forth herein are for the purpose of convenient reference only, and shall have no bearing whatsoever on the interpretation
of this Agreement.

 

9.12          Notices.
Any notice or other communication hereunder shall be given in writing and either (i) delivered in person, (ii) transmitted by facsimile,
(iii) delivered by overnight FedEx or similar overnight commercial delivery service or (iv) mailed by certified mail, postage prepaid,
return receipt requested, to the party to which such notice or communication is to be given at the address set forth below or at
such other address as may be given from time to time under the terms of this Section. Each such notice or other communication shall
be effective (i) if given by facsimile, when transmitted, (ii) if given by mail, five (5) days after such communication is deposited
in the mail and addressed as aforesaid, (iii) if given by overnight FedEx or similar overnight commercial delivery service, one
(1) business day after such communication is deposited with such service and addressed as aforesaid, and (iv) if given by any other
means, when actually received.

 

	To Manager:	To AP-AMH:
	 	 
	Network Medical Management, Inc.	AP-AMH Medical Corporation
	1668 S. Garfield Ave., 2nd Floor	1668 S. Garfield Ave., 2nd Floor
	Alhambra, CA 91801	Alhambra, CA 91801
	Attn: CEO	Attn: CEO

 

9.13         Waiver.
Any waiver of any provision hereof shall not be effective unless expressly made in writing executed by the party to be charged.
The failure of any party to insist on performance of any of the terms or conditions of this Agreement shall not be construed as
a waiver or relinquishment of any rights granted hereunder or of the future performance of any such term, covenant or condition,
and the obligations of the parties with respect thereto shall continue in full force and effect.

 

9.14         Successors
And Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and permitted assigns.

 

9.15         Counterparts.
This Agreement may be executed in two or more counterparts, all of which shall, in the aggregate, be considered one and the same
instrument.

 

9.16         Additional
Documents. Each of the parties hereto agrees to execute any document or documents that may be requested from time to time by
the other party to implement or complete such party’s obligations pursuant to this Agreement and to otherwise cooperate fully
with such other party in connection with the performance of such party’s obligations under this Agreement.

 

    	 	- 8 -	 

     

    

 

[Signatures continued on next page]

 

    	 	- 9 -	 

     

    

 

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

 

 

	“Manager”	“AP-AMH”
	 	 
	NETWORK MEDICAL MANAGEMENT, INC.	AP-AMH MEDICAL CORPORATION

 

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

 

	By:	/s/ Eric Chin	 	 
	Name:	Eric Chin	 	 
	Title:	Chief Financial Officer	 	 

 

    	 	- 10 -

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