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  Exhibit 10.5    
    

 
    RESIGNATION AGREEMENT    
    

        This Resignation Agreement ("Agreement") is entered into as of May 12, 2008 by and between Prospect Medical
Holdings, Inc., a Delaware corporation ("Prospect"), and Jacob Y. Terner, M.D. ("Dr. Terner"). 

 
 

  RECITALS    
    

        WHEREAS, Dr. Terner has been employed with Prospect pursuant to an Employment Agreement dated as of August 1, 1999, as
amended (the "Employment Agreement"), most recently serving as Chairman of the Board of Prospect; and 

        WHEREAS,
Dr. Terner has also served as director and chief executive officer of Prospect's management company subsidiaries (the "Prospect Subsidiaries"); and 

        WHEREAS,
in addition to Dr. Terner's positions with Prospect and its management company subsidiaries, Dr. Terner has served as director, chief executive officer and sole
shareholder of Prospect
Medical Group, Inc. ("Group"), a California professional corporation affiliated with Prospect, and as director and chief executive officer of each of Prospect's other affiliated physician
organizations, except for AMVI/Prospect Health Network and Nuestra Familia Medical Group (together with Group, the "Affiliated Physician Organizations"); and 

        WHEREAS,
Prospect wishes Dr. Terner to immediately resign his positions as an officer and director of Prospect and the Prospect Subsidiaries and, ultimately, as an officer and
director of the Affiliated Physician Organizations; and 

        WHEREAS,
Dr. Terner wishes to accommodate Prospect and so resign from his positions with Prospect and the Prospect Subsidiaries and as an officer of the Affiliated Physician
Organizations, but to continue at Prospect's request on a temporary basis to act as director and officer of the Affiliated Physician Organizations, as sole shareholder of Group and as holder of record
title to Group's shares in Nuestra Familia Medical Group until a suitable replacement can be identified for such positions; and 

        WHEREAS,
Dr. Terner and Prospect (collectively, "the Parties") desire to set forth the terms and conditions of Dr. Terner's resignation in this Agreement. 

 
 

  AGREEMENT    
    

        NOW, THEREFORE, the Parties hereby agree as follows: 

	1.
	RESIGNATION.

        (a)   Dr. Terner's
employment by, and, except as provided for in this Agreement, entitlement to compensation from, Prospect and the Prospect Subsidiaries (collectively,
the "Company") will end effective May 12, 2008 (the "Effective Date"). Prospect will continue to pay Dr. Terner's current base salary, on its normal payroll schedule, and (subject to all
applicable withholding), through the Effective Date. On the Effective Date, Prospect shall issue Dr. Terner his final paycheck, representing all wages, compensation, accrued, unused vacation
and reimbursable expenses (to the extent reimbursement requests have been submitted by Dr. Terner prior to the Effective Date) to which he is entitled. To the extent that any reimbursable
expenses to which Dr. Terner is entitled have not been submitted by Dr. Terner for reimbursement or have not been billed or cannot otherwise be calculated by Prospect prior to the
Effective Date, Prospect shall pay such expenses or reimburse Dr. Terner, as appropriate, promptly following presentation of evidence to Prospect of such reimbursable amounts. As of the signing
of this document, Dr. Terner acknowledges and agrees that except for amounts due to him in his final paycheck, and for reimbursable expenses payable following the Effective Date as noted in the
immediately preceding sentence, he has received all monies, bonuses, commissions, other compensation or perquisites and reimbursements he earned or was due through the Effective Date. 

 

        (b)   Dr. Terner
resigns his positions as an officer, director and/or manager of the Company and of Alta Hospitals System, LLC, all effective as of the Effective
Date. Dr. Terner agrees to execute any documentation necessary to effectuate such resignations and his ultimate resignations as an officer of the Affiliated Physician Organizations per
Section 3 below. 

        (c)   Except
as expressly provided for in this Agreement, Dr. Terner's entitlement to benefits from the Company, and eligibility to participate in the Company's benefit
plans, shall cease on the Effective Date, except to the extent Dr. Terner elects to and is eligible to continue his medical and dental benefits at his sole expense pursuant to COBRA. 

	2.
	PAYMENTS. 

        (a)   In
consideration for Dr. Terner's resignation and the other promises contained in this Agreement, commencing as of May 12, 2008 and concluding on
April 30, 2011 (the "Payment Period"), Prospect shall make payments to the Terner Family Trust dated December, 1997 ("TFT") as follows: 

        (i)    For
the twelve (12) month period commencing on May 1, 2008 and ending on April 30, 2009, Prospect shall pay to TFT the sum of $19,361.10 per month,
paid on the last business day of each month. 

        (ii)   For
the twenty four (24) month period commencing on May 1, 2009 and ending on April 30, 2011, Prospect shall pay to TFT the sum of $42,694.45 per
month, paid on the last business day of each month. 

        (b)   Both
parties to this Agreement acknowledge and agree that the payments described above fulfill the contractual obligations owed by the Company to Dr. Terner under
his Employment Agreement. Except as specifically provided in this Agreement, Dr. Terner agrees that the Company has no further obligation to make any payments to, or bestow any benefits upon
Dr. Terner for any reason.  

	3.
	AFFILIATED
PHYSICIAN ORGANIZATIONS. 

        Following
the Effective Date, Dr. Terner agrees to serve as director, officer and sole shareholder of Group, as director and officer of each of Prospect's other Affiliated
Physician Organizations and as holder of record title to Group's shares in Nuestra Familia Medical Group until such time as Prospect has identified a replacement for such positions, but in no event
for more than ninety (90) days following the Effective Date. Dr. Terner shall continue to serve in such positions subject to the terms and conditions of the agreements described below,
but shall resign from such positions immediately upon Prospect's request. Dr. Terner shall not be entitled to any additional compensation from Prospect for such services. Further to the
foregoing, Dr. Terner acknowledges that he is a party to the following agreements which benefit Prospect, Group, and their lenders: (i) Third Amended and Restated Assignable Option
Agreement effective as of August 8, 2007 with Prospect Medical Systems and Group ("PMG Shares Assignable Option"), (ii) Amended and Restated Option Agreement effective as of
August 8, 2007 with Group ("Nuestra Shares Assignable Option"), (iii) First Lien Pledge Agreement effective as of August 8. 2007 ("First Lien Pledge Agreement) in favor of Bank of
America, N.A., as administrative agent ("Administrative Agent") with respect to the PMG Shares and Nuestra Shares, and its successors and assigns, including the lenders of Prospect and Group
("Lenders"), and (iv) Second Lien Pledge Agreement effective as of August 8. 2007 ("Second Lien Pledge Agreement") in favor of the Administrative Agent and the Lenders with respect to
the PMG Shares and Nuestra Shares. Dr. Terner acknowledges and agrees that he shall continue to be a party to the PMG Shares Assignable Option, the Nuestra Shares Assignable Option, the First
Lien Pledge Agreement and the Second Lien Pledge Agreement, and that he shall continue to be bound by the obligations thereunder, until a replacement has been instituted. 

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	4.
	RELEASE
OF CLAIMS 

        In
consideration of the amounts specified in paragraph 2, and the promises contained in this Agreement, it is further agreed that Dr. Terner, on behalf of himself as well
as his successors, hereby releases and covenants not to sue the Company, its past and present partners, employees, representatives, shareholders, officers, directors, agents, attorneys, accountants,
lenders, insurers, predecessors in interest, successors in interest, related companies, subsidiaries, parent companies, divisions, affiliates, assigns and heirs, and each of them, from any and all
claims or causes of action whether known or unknown, occurring prior to the date of this Agreement which arise out of, are based upon or relate to Dr. Terner's employment (including his
positions as an officer, director, and/or manager) with the Company and its affiliates and his resignation from employment.  

	5.
	ADEA
WAIVER 

        Dr. Terner
agrees that this Agreement meets the requirements of the Age Discrimination in Employment Act of 1967 ("ADEA"), as amended by the Older Workers' Benefit Protection Act
of 1990 ("OWBPA"), including the provisions of 29 U.S.C. § 626(f)(1) regarding specific requirements for the waiver of rights and claims thereunder in any way arising prior to the
date of this Agreement. Those requirements include that Dr. Terner understands and acknowledges that by executing this Agreement: 

        (1)   Dr. Terner
is knowingly and voluntarily waiving any and all rights and claims he may have under the ADEA and the OWBPA; 

        (2)   Dr. Terner
recognizes that this Agreement is an important legal document and has been advised to consult with an attorney prior to executing this Agreement; 

        (3)   Dr. Terner
has carefully read this Agreement, knows and understand its contents and its significance, and intends to be bound by its terms; 

        (4)   Dr. Terner
has been given a period of 21 days from the receipt of this Agreement to consider its contents and ramifications and his decision to sign it
(although it may be executed and returned prior to the conclusion of that period if desired); 

        (5)   Dr. Terner
will be given seven days following execution of this Agreement to revoke it by notifying the Company in writing of revocation. In case of revocation,
this Agreement will not become effective or enforceable. No payments will be made under this Agreement until that seven day revocation period has expired without Dr. Terner's having revoked
this Agreement prior to such expiration. 

Dr. Terner
voluntarily waives any right to seek reemployment by The Company.  

	6.
	WAIVER
OF CIVIL CODE SECTION 1542 

        Dr. Terner
waives any and all rights or benefits which he may have had under Section 1542 of the California Civil Code, which provides: 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 

        Dr. Terner
represents and warrants that he understands the effect of this waiver of Section 1542 of the California Civil Code. It is expressly understood and agreed that
the possibility that unknown claims exist has been explicitly taken into account in determining the consideration to be given for this Agreement and that a portion of that consideration, having been
bargained for in full knowledge of the possibility of such unknown claims, was given in exchange for the release and discharge of claims covered by this release. 

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	7.
	CONFIDENTIALITY

        Dr. Terner
shall keep in strictest confidence all information relating to the business, affairs, clients, and customers of the Company (collectively hereinafter referred to as
"Trade Secrets"), including, among other things, but without limitation, the Company's cost of performing services, pricing formulae, business strategy, methods, know-how, finances, or
procedures, which Dr. Terner may have acquired during the performance of his services and duties and which are not otherwise generally known to the public. Dr. Terner acknowledges that
such Trade Secrets are of great value, and have been developed and/or acquired at great expense to the Company, and such information was made available to Dr. Terner in Dr. Terner's
fiduciary capacity as an officer, director, and employee of the Company. Dr. Terner shall not publish, communicate, divulge, disclose or use, whether or not for his own benefit, any Trade
Secrets without the prior written consent of the Company. Dr. Terner further agrees not to speciously disparage or denigrate the business reputation of the Company or any of its officers,
directors, or other affiliates.  

	8.
	MISCELLANEOUS
PROVISIONS. 

        (a)   No Admission of Liability.    Nothing in this Agreement, or any document referred to herein, nor any act
(including, but not limited to, the execution of this Agreement) of any Party hereto, nor any transaction occurring between any Parties hereto prior to the date hereof is or shall be treated,
construed or deemed as an admission by any Party hereto of any liability, fault, responsibility, or guilt of any kind to any other Party hereto or to any person. 

        (b)   Encouragement to Consult with Attorney; Tax Consequences.    Dr. Terner has the right to consult with an
attorney and is encouraged to do so before signing this Agreement. Dr. Terner understands that whether or not to do so is Dr. Terner's decision and if it is done, it is done at
Dr. Terner's expense. Dr. Terner acknowledges that he has been informed that Theodora Oringher Miller & Richman P.C., serves as counsel to Prospect and is not serving as
Dr. Terner's attorney with respect to this Agreement. Dr. Terner further acknowledges that the benefits provided in this Agreement may have tax consequences, including those relating to
the tax treatment of any stock options granted as incentive stock options, that Prospect has not provided any tax advice, and that Dr. Terner is free to consult with an accountant, legal
counsel, or other tax advisor regarding the tax consequences. 

        (c)   Severability.    The provisions of this Agreement are severable. If any part of this Agreement is found to be
invalid or unenforceable, the other provisions shall remain fully valid and enforceable. 

        (d)   Entire Agreement.    This Agreement sets forth the entire agreement between Dr. Terner and Prospect and
any and all prior oral or written arrangements or understandings between Dr. Terner and Prospect concerning the subject matter of this Agreement. This Agreement may not be altered, amended, or
modified, except by a further writing signed by Dr. Terner on the one hand and Prospect on the other. 

4

 

        IN
WITNESS WHEREOF, the Parties have executed this Agreement on the dates indicated below. 

			
	DR. TERNER	 	PROSPECT
	 	 	 
	 	 	Prospect Medical Holdings, Inc.
	 	 	 
	/s/ JACOB Y. TERNER, M.D.

Jacob Y. Terner, M.D.	 	/s/ SAMUEL S. LEE

Samuel S. Lee, Chief Executive Officer

5

QuickLinks

Exhibit 10.5

RESIGNATION AGREEMENT

RECITALS

AGREEMENTQuickLinks
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  Exhibit 10.6    
    

 SECOND AMENDMENT TO

AMENDED AND RESTATED FORBEARANCE AGREEMENT  

        THIS SECOND AMENDMENT TO AMENDED AND RESTATED FORBEARANCE AGREEMENT (this "Amendment")
is made and entered into as of May 14, 2008, by and among Prospect Medical Holdings, Inc. ("Holdings") and Prospect Medical
Group, Inc. ("Prospect" and, collectively with Holdings, the "Borrowers" and each, individually,
a "Borrower"), Bank of America, N.A., as Administrative Agent (in such capacity, the "First Lien Administrative
Agent") on behalf of itself and the other lenders party to the Credit Agreement defined below (the "First Lien Lenders"). 

 RECITALS  

        WHEREAS, the Borrowers, the First Lien Lenders and the First Lien Administrative Agent have entered into that certain First Lien Credit
Agreement dated as of August 8, 2007 (as amended, restated, supplemented or otherwise modified, the "First Lien Credit Agreement"), pursuant to
which the First Lien Lenders have agreed to make the Loans (such term, together with each other capitalized term used in this Amendment but not defined in this Amendment, shall be defined in
accordance with the First Lien Credit Agreement) and other extensions of credit, all upon the terms and conditions set forth in the First Lien Credit Agreement; 

        WHEREAS,
as of the date hereof, certain Defaults and Events of Default exist under the First Lien Credit Agreement and, which as a result of such Defaults and Events of Default, gave
rise to the First Lien Lenders and the First Lien Administrative Agent having the right, among other things, to declare the commitment of each First Lien Lender to make Loans to be terminated and to
exercise any and all other remedies available to the First Lien Lenders under the First Lien Credit Agreement; 

        WHEREAS,
the Borrowers, the First Lien Administrative Agent and the First Lien Lenders entered into an Amended and Restated Forbearance Agreement on April 10, 2008 (as amended by
a First Amendment to Amended and Restated Forbearance Agreement, dated as of April 30, 2008, as further amended hereby, and as may be further amended, restated supplemented or otherwise
modified, the "Forbearance Agreement") pursuant to which the First Lien Lenders and the First Lien Administrative Agent agreed to forbear from
exercising such rights for a limited period of time provided that Borrowers satisfied certain conditions contained within such Forbearance Agreement; 

        WHEREAS,
the Borrowers have advised the First Lien Administrative Agent that they need an additional day to provide final covenant calculations to the First Lien Administrative Agent and
the First Lien Lenders, and, accordingly, the Borrowers have requested an extension to the Forbearance Period to finalize such calculations; 

        WHEREAS,
the First Lien Lenders and the First Lien Administrative Agent are willing to grant such request on the terms and conditions set forth in this Amendment; 

        NOW,
THEREFORE, in consideration of the foregoing, the parties agree as follows: 

 
 

  ARTICLE I
  
    AMENDMENT TO THE FORBEARANCE AGREEMENT AND COVENANTS    
    

        Section 1.1    Definitions.    All capitalized terms used and not defined herein shall have the meanings
assigned thereto in the Credit Agreement and/or the Forbearance Agreement, as applicable. 

        Section 1.2    Amendment.    The first paragraph of Section 1.4 of the Forbearance Agreement is hereby
amended by replacing the date "May 14, 2008" with "May 15, 2008" in such section. 

 
 
 

  ARTICLE II
  
    CONDITIONS TO EFFECTIVENESS    
    

        Section 2.1    Conditions Precedent.    This Amendment shall become effective as of the date first written
above upon the satisfaction of each of the following conditions: 

        (a)   the
First Lien Administrative Agent shall have received duly executed counterparts of this Amendment from each of the Borrowers, the Guarantors and written confirmation
of agreement to the terms hereof by the Required Lenders; and 

        (b)   the
Second Lien Administrative Agent and the Second Lien Lenders shall have consented in writing to this Amendment. 

        (c)   the
Second Lien Administrative Agent and the Second Lien Lenders shall have entered into an amendment, which shall be substantially similar to this Amendment, with the
Borrowers on terms satisfactory to the First Lien Administrative Agent and the First Lien Lenders. 

 
 

  ARTICLE III
  
    MISCELLANEOUS    
    

        Section 3.1    Representations and Warranties.    Each Loan Party hereby represents and warrants to the First
Lien Administrative Agent and the First Lien Lenders that (a) each Loan Party has the legal power and authority to execute and deliver this Amendment; (b) the officers of each Loan Party
executing this Amendment have been duly authorized to execute and deliver the same and bind each Loan Party with respect to the provisions hereof; (c) the execution and delivery hereof by each
Loan Party and the performance and observance by each Loan Party of the provisions hereof do not violate or conflict with any organizational document of any Loan Party or any law applicable to any
Loan Party or result in a breach of any provision of or constitute a default under any other agreement, instrument or document binding upon or enforceable against any Loan Party; (d) except
with respect to the Existing Events of Default, no Default or Event of Default exists under the First Lien Credit Agreement, nor will any occur immediately after the execution and delivery of this
Amendment or by the performance or observance of any provision hereof; (e) no Loan Party is aware of any claim or offset against, or defense or counterclaim to, any Loan Party's obligations or
liabilities under the First Lien Credit Agreement or any other Loan Document; (f) this Amendment and each document executed by each Loan Party in connection herewith constitute valid and
binding obligations of the applicable Loan Party in every respect, enforceable in accordance with their terms; and (g) no Loan Party has received a notice of default of any kind from any
material account debtor or any counterparty to a Material Contract and no material account debtor or counterparty to a Material Contract has asserted any right of set-off, deduction or
counterclaim with respect to any account or such Material Contract, respectively. 

        Section 3.2    Release.    Each Loan Party hereby waives and releases the First Lien Administrative Agent and
the First Lien Lenders and their respective directors, officers, employees, agents, attorneys, affiliates and subsidiaries (each a "Releasee") from any
and all claims, offsets, defenses and counterclaims, known and unknown, that any Loan Party may have as of the date of this Amendment based upon, relating to, or arising out of the Obligations and
related transactions in any way. Each Loan Party intends the foregoing release to cover, encompass, release and extinguish, among other things, all claims and matters that might otherwise be reserved
by California Civil Code Section 1542, which provides as follows: 

"A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor." 

2

 

Notwithstanding
the foregoing, this Section 3.2 shall not constitute a release of the obligations of the First Lien Administrative Agent or any
First Lien Lender under the Loan Documents, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with
respect thereto. 

        Section 3.3    Covenant Not to Sue.    Each Loan Party, on behalf of itself and its successors, assigns, and
other legal representatives, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory
proceeding or otherwise) any Releasee on the basis of any claim released, remised and discharged by such Loan Party pursuant to Section 3.2
above. If any Loan Party or any of its successors, assigns or other legal representations violates the foregoing covenant, such Loan Party, for itself and its successors, assigns and legal
representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys' fees and costs incurred by any Releasee as a result of such
violation. 

        Section 3.4    Loan Documents Unaffected.    Except as otherwise specifically provided herein, all provisions
of the First Lien Credit Agreement (including without limitation, Section 10.07 thereof) and the other Loan Documents (including, without limitation, the Forbearance Agreement and the
Intercreditor Agreement) shall remain in full force and effect and be unaffected hereby. The parties hereto acknowledge and agree that this Amendment constitutes a "Loan Document" under the terms of
the First Lien Credit Agreement. 

        Section 3.5    Guarantor Acknowledgement.    Each Guarantor, by signing this Amendment: 

        (a)   consents
and agrees to and acknowledges the terms of this Amendment; 

        (b)   acknowledges
and agrees that all of the Loan Documents to which such Guarantor is a party or otherwise bound shall continue in full force and effect and that all of such
Guarantor's obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Amendment; 

        (c)   represents
and warrants to the First Lien Administrative Agent and the First Lien Lenders that all representations and warranties made by such Guarantor and contained in
this Amendment or any other Loan Document to which it is a party are true and correct in all material respects (other than such
representations and warranties that are untrue or otherwise inaccurate solely and directly as a result of the Existing Events of Default) on and as of the date of this Amendment to the same extent as
though made on and as of such date, except to the extent that any thereof expressly relate to an earlier date; and 

        (d)   acknowledges
and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, such Guarantor is not required by the terms of the
First Lien Credit Agreement or any other Loan Document to which such Guarantor is a party to consent to the terms of this Amendment and (ii) nothing in the First Lien Credit Agreement, this
Amendment, the Forbearance Agreement or any other Loan Document shall be deemed to require the consent of such Guarantor to any future amendments or modifications to the First Lien Credit Agreement. 

        Section 3.6    No Other Promises or Inducements.    There are no promises or inducements that have been made to
any party hereto to cause such party to enter into this Amendment other than those that are set forth in this Amendment. This Amendment has been entered into by each Borrower and each Guarantor
freely, voluntarily, with full knowledge, and without duress, and, in executing this Amendment, neither any Borrower nor any Guarantor is relying on any other representations, either written or oral,
express or implied, made to any Borrower or any Guarantor by the First Lien Administrative Agent. Each Borrower and each Guarantor agrees that the consideration received by the Borrowers under this
Amendment has been actual and adequate. 

3

 

        Section 3.7    No Course of Dealing.    Each Loan Party acknowledges and agrees that, (a) this Amendment
is not intended to, nor shall it, establish any course of dealing between the Loan Parties, the First Lien Administrative Agent and the First Lien Lenders that is inconsistent with the express terms
of the First Lien Credit Agreement, the Forbearance Agreement, or any other Loan Document, (b) notwithstanding any course of dealing between the Loan Parties, the First Lien Administrative
Agent and the First Lien Lenders prior to the date hereof, except as set forth herein, the First Lien Lenders shall not be obligated to make any Loan, except in accordance with the terms and
conditions of this Amendment and the First Lien Credit Agreement, and (c) except with respect to the limited forbearance granted in the Forbearance Agreement specifically relating to the
Existing Events of Default, neither the First Lien Administrative Agent nor any First Lien Lender shall be under any obligation to forbear from exercising any of its rights or remedies upon the
occurrence of any Default or Event of Default. Nothing herein modifies the agreements among the First Lien Administrative Agent and the First Lien Lenders with respect to the exercise of their
respective rights and remedies under the terms of the First Lien Credit Agreement. 

        Section 3.8    No Waiver.    Each Loan Party acknowledges and agrees that (a) except as expressly
provided herein, this Amendment shall not operate as a waiver of any right, power or remedy of the First Lien Administrative Agent or the First Lien Lenders under the First Lien Credit Agreement or
any Loan
Document, nor shall it constitute a continuing waiver at any time, (b) the First Lien Lenders shall not have any obligation to extend the term of the Forbearance Period, (c) nothing
herein shall be deemed to constitute a waiver of any Default or Event of Default, including the Existing Events of Default, and, except as expressly provided herein, nothing herein shall in any way
prejudice the rights and remedies of the First Lien Administrative Agent or the First Lien Lenders under the First Lien Credit Agreement, any Loan Document or applicable law. In addition, the First
Lien Administrative Agent shall have the right to waive any condition or conditions set forth in this Amendment, the First Lien Credit Agreement or any Loan Document, in its sole discretion, and any
such waiver shall not prejudice, waive or reduce any other right or remedy that the First Lien Administrative Agent may have against any Loan Party. 

        Section 3.9    Survival.    All representations, warranties, covenants, agreements, releases and waivers made
by or on behalf of any Loan Party under this Amendment shall survive and continue after the expiration or termination of the Forbearance Period. 

        Section 3.10    No Waiver of Rights.    No waiver shall be deemed to be made by any party hereunder of any of
its rights hereunder unless the same shall be in writing signed on behalf of such party. 

        Section 3.11    Governing Law.    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

        Section 3.12    Entire Agreement.    This Amendment sets forth the entire agreement and understanding among the
parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements, and undertakings of every kind and nature among them with respect to the subject matter hereof. 

        Section 3.13    Counterparts.    This Amendment may be executed in any number of counterparts, and by the
parties hereto on the same or separate counterparts and by facsimile signature, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Amendment. 

        Section 3.14    Severability Of Provisions; Captions; Attachments.    Wherever possible each provision of this
Amendment shall be interpreted in such manner as to be effective and valid under applicable law. Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without 

4

 

invalidating
the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. The captions to Sections and subsections herein are inserted for
convenience only and shall be ignored in interpreting the provisions of this Amendment. Each schedule or exhibit attached to this Amendment shall be incorporated herein and shall be deemed to be a
part hereof. 

        Section 3.15    JURY TRIAL WAIVER.    EACH OF THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG THEM, OR ANY OF THEM, ARISING OUT OF, IN CONNECTION WITH, RELATED TO OR INCIDENTAL TO
THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY DOCUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date referenced in the first paragraph of this Amendment. 

[Signature
Pages Follow] 

5

					
	 	 	PROSPECT MEDICAL HOLDINGS, INC.
	    	 	 	 	 
	 	 	By:	 	 

	 	 	Name:	 	  

	 	 	Title:	 	  

	    	 	 	 	 
	 	 	PROSPECT MEDICAL GROUP, INC.
	    	 	 	 	 
	 	 	By:	 	 

	 	 	Name:	 	  

	 	 	Title:	 	  

					
	 	 	BANK OF AMERICA, N.A

in its capacity as First Lien Administrative Agent and on behalf of the First Lien Lenders under the First Lien Credit Agreement
	    	 	 	 	 
	 	 	By:	 	 

	 	 	Name:	 	  

	 	 	Title:	 	  

QuickLinks

Exhibit 10.6

ARTICLE I AMENDMENT TO THE FORBEARANCE AGREEMENT AND COVENANTS

ARTICLE II CONDITIONS TO EFFECTIVENESS

ARTICLE III MISCELLANEOUS

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