EX-10.1






 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 Exhibit 10.1 

STOCKHOLDERS AGREEMENT 

DATED AS OF [    ], [    ] 

AMONG 
 APRIA, INC.

 AND 
 THE OTHER
PARTIES HERETO 

  














 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 Table of Contents 

 

							
	 	 	 	  	Page	 
		
	 ARTICLE I. INTRODUCTORY MATTERS
	  	 	1	 
			
	 1.1
	 	Defined Terms	  	 	1	 
			
	 1.2
	 	Construction	  	 	4	 
		
	 ARTICLE II. CORPORATE GOVERNANCE MATTERS
	  	 	5	 
			
	 2.1
	 	Election of Directors	  	 	5	 
			
	 2.2
	 	Compensation	  	 	6	 
			
	 2.3
	 	Other Rights of Stockholder Designees	  	 	6	 
		
	 ARTICLE III. INFORMATION; VCOC
	  	 	7	 
			
	 3.1
	 	Books and Records; Access	  	 	7	 
			
	 3.2
	 	Tax-Related Information	  	 	7	 
			
	 3.3
	 	Certain Reports	  	 	7	 
			
	 3.4
	 	VCOC	  	 	8	 
			
	 3.5
	 	Confidentiality	  	 	10	 
			
	 3.6
	 	Information Sharing	  	 	11	 
		
	 ARTICLE IV. ADDITIONAL COVENANTS
	  	 	11	 
			
	 4.1
	 	Pledges or Transfers	  	 	11	 
			
	 4.2
	 	Spin-Offs or Split-Offs	  	 	11	 
		
	 ARTICLE V. GENERAL PROVISIONS
	  	 	11	 
			
	 5.1
	 	Termination	  	 	11	 
			
	 5.2
	 	Notices	  	 	12	 
			
	 5.3
	 	Amendment; Waiver	  	 	12	 
			
	 5.4
	 	Further Assurances	  	 	12	 
			
	 5.5
	 	Assignment	  	 	13	 
			
	 5.6
	 	Third Parties	  	 	13	 
			
	 5.7
	 	Governing Law	  	 	13	 
			
	 5.8
	 	Jurisdiction; Waiver of Jury Trial	  	 	13	 
			
	 5.9
	 	Specific Performance	  	 	13	 
			
	 5.10
	 	Entire Agreement	  	 	14	 
			
	 5.11
	 	Severability	  	 	14	 
			
	 5.12
	 	Table of Contents, Headings and Captions	  	 	14	 


  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 


							
	 5.13
	 	Grant of Consent	  	 	14	 
			
	 5.14
	 	Counterparts	  	 	14	 
			
	 5.15
	 	Effectiveness	  	 	14	 
			
	 5.16
	 	No Recourse	  	 	14	 


  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 STOCKHOLDERS AGREEMENT 

This Stockholders Agreement is entered into as of [    ], [    ] by and among Apria, Inc., a Delaware
corporation (the “Company”), and each of the other parties from time to time party hereto (collectively, the “Stockholders”). 

RECITALS: 
 WHEREAS, the Company
is effecting an underwritten initial public offering (“IPO”) of shares of its Common Stock (as defined below); and 

WHEREAS, in connection with the IPO, the Company and the Stockholders wish to set forth certain understandings between such parties, including
with respect to certain governance matters. 
 NOW, THEREFORE, the parties agree as follows: 

ARTICLE I. 
 INTRODUCTORY MATTERS

 1.1 Defined Terms. In addition to the terms defined elsewhere herein, the following terms have the following meanings when
used herein with initial capital letters: 
 “Affiliate” has the meaning set forth in Rule
12b-2 promulgated under the Exchange Act, as in effect on the date hereof. 

“Agreement” means this Stockholders Agreement, as the same may be amended, supplemented, restated or otherwise modified from
time to time in accordance with the terms hereof. 
 “Beneficially Own” has the meaning set forth in Rule 13d-3 promulgated under the Exchange Act. 
 “Board” means the board of directors of the
Company. 
 “Business Day” means a day other than a Saturday, Sunday, federal or New York State holiday or other day on
which commercial banks in New York City are authorized or required by law to close. 
 “Closing Date” means the date of the
closing of the IPO. 
 “Common Stock” means shares of common stock, par value $0.01 per share, of the Company, and any
securities issued in respect thereof, or in substitution therefor, in connection with any stock split, dividend or combination, or any reclassification, recapitalization, merger, consolidation or similar transaction. 

“Company” has the meaning set forth in the Preamble. 

  














 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 “Confidential Information” means any information concerning the Company or
its Subsidiaries that is furnished after the date of this Agreement by or on behalf of the Company or its designated representatives to a Stockholder or its designated representatives, together with any notes, analyses, reports, models,
compilations, studies, documents, records or extracts thereof containing, based upon or derived from such information, in whole or in part; provided, however, that Confidential Information does not include information: 

 

	 	(i)	 that is or has become publicly available other than as a result of a disclosure by a Stockholder or its
designated representatives in violation of this Agreement; 


  

	 	(ii)	 that was already known to a Stockholder or its designated representatives or was in the possession of a
Stockholder or its designated representatives prior to its being furnished by or on behalf of the Company or its designated representatives; 


  

	 	(iii)	 that is received by a Stockholder or its designated representatives from a source other than the Company or its
designated representatives, provided, that the source of such information was not actually known by such Stockholder or designated representative to be bound by a confidentiality agreement with, or other contractual obligation of confidentiality to,
the Company; 


  

	 	(iv)	 that was independently developed or acquired by a Stockholder or its designated representatives or on its or
their behalf without the violation of the terms of this Agreement; or 


  

	 	(v)	 that a Stockholder or its designated representatives is required, in the good faith determination of such
Stockholder or designated representative, to disclose by applicable law, regulation or legal process, provided, that such Stockholder or designated representative takes reasonable steps to minimize the extent of any such required disclosure,
provided, further, that no such steps to minimize disclosure shall be required where disclosure is made (i) in response to a request by a regulatory or self-regulatory authority or (ii) in connection with a routine audit or examination by
a bank examiner or auditor and such audit or examination does not specifically reference the Company or this Agreement. 



“Control” (including its correlative meanings, “Controlled by” and “under common Control
with”) means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise) of a
Person. 
 “Director” means any director of the Company from time to time. 

“Equity Securities” means any and all shares of Common Stock of the Company, and any and all securities of the Company
convertible into, or exchangeable or exercisable for (whether or not subject to contingencies or the passage of time, or both), such shares, and options, warrants or other rights to acquire shares of Common Stock of the Company. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder, as the same may be amended from time to time. 
 “Governmental Authority”
means any nation or government, any state or other political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

“Information” has the meaning set forth in Section 3.1 hereof. 

“IPO” has the meaning set forth in the Recitals. 

“Law” means any statute, law, regulation, ordinance, rule, injunction, order, decree, governmental approval, directive,
requirement, or other governmental restriction or any similar form of decision of, or determination by, or any interpretation or administration of any of the foregoing by, any Governmental Authority. 

“NewCo” has the meaning set forth in Section 4.2 hereof. 

“Non-Recourse Party” has the meaning set forth in
Section 5.16 hereof. 
 “Permitted Transferee” means with respect to a Stockholder, a Transferee
of shares of Common Stock that agrees to become party to, and be bound to the same extent as its transferor, by the terms of this Agreement. 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, or other form of business organization, whether or not regarded as a legal entity under applicable Law, or any Governmental Authority or any department, agency or political
subdivision thereof. 
 “Plan Asset Regulation” has the meaning set forth in Section 3.3(a)
hereof. 
 “Pre-IPO Owners” means (x) the Stockholder Entities and their
Permitted Transferees and (y) any other holders of outstanding shares of Common Stock immediately prior to the closing of the IPO and, in each case, any Affiliate of any such holder that shall become a holder of any Common Stock. 

“Stockholder” has the meaning set forth in the Preamble. 

“Stockholder Designator” means any Stockholder, or any group of Stockholders collectively, then beneficially owning a
majority of Common Stock beneficially owned by all Stockholders. 
 “Stockholder Designee” has the meaning set forth in
Section 2.1(b) hereof. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 “Stockholder Entity” means any Stockholder and each of its Affiliates and
their respective successors and Permitted Transferees. 
 “Subsidiary” means, with respect to any Person, any corporation,
limited liability company, partnership, association or other business entity of which: (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, representatives or trustees thereof is at the time owned or Controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or any combination thereof; or (ii) if a limited
liability company, partnership, association or other business entity, a majority of the total voting power of stock (or equivalent ownership interest) of the limited liability company, partnership, association or other business entity is at the time
owned or Controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or any combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability
company, partnership, association or other business entity if such Person or Persons shall (a) be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or
(b) Control the managing member, managing director or other governing body or general partner of such limited liability company, partnership, association or other business entity. 

“Total Number of Directors” means the total number of directors comprising the Board from time to time. 

“Transfer” (including its correlative meanings, “Transferor,” “Transferee” and
“Transferred”) shall mean, with respect to any security, directly or indirectly, to sell, contract to sell, give, assign, hypothecate, pledge, encumber, grant a security interest in, offer, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any economic, voting or other rights in or to such security. When used as a noun, “Transfer” shall
have such correlative meaning as the context may require. 
 “VCOC Investor” has the meaning set forth in
Section 3.3(a) hereof. 
 “Voting Securities” means, at any time, outstanding shares of any class
of Equity Securities of the Company, which are then entitled to vote generally in the election of directors. 
 1.2
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party. Unless the context otherwise
requires: (a) “or” is disjunctive but not exclusive, (b) words in the singular include the plural, and in the plural include the singular, and (c) the words “hereof,” “herein,” and
“hereunder” and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise specified.


  
 4 


  














 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 ARTICLE II. 

CORPORATE GOVERNANCE MATTERS 
 2.1
Election of Directors. 
 (a) Following the Closing Date, the Stockholder Designator shall have the right, but not the obligation, to
designate, and the individuals nominated for election as Directors by or at the direction of the Board or a duly-authorized committee thereof shall include, a number of individuals such that, upon the election of each such individual, and each other
individual nominated by or at the direction of the Board or a duly authorized committee of the Board, as a Director and taking into account any Director continuing to serve without the need for re-election,
the number of Stockholder Designees (as defined below) serving as Directors of the Company will be equal to: (i) if the Pre-IPO Owners collectively Beneficially Own 50% or more of the Voting Securities as
of the record date for such meeting, the lowest whole number that is greater than 50% of the Total Number of Directors; (ii) if the Pre-IPO Owners collectively Beneficially Own at least 40% (but less than
50%) of the Voting Securities as of the record date for such meeting, the lowest whole number that is greater than 40% of the Total Number of Directors; (iii) if the Pre-IPO Owners collectively
Beneficially Own at least 30% (but less than 40%) of the Voting Securities as of the record date for such meeting, the lowest whole number that is greater than 30% of the Total Number of Directors; (iv) if the
Pre-IPO Owners collectively Beneficially Own at least 20% (but less than 30%) of the Voting Securities as of the record date for such meeting, the lowest whole number that is greater than 20% of the Total
Number of Directors; and (v) if the Pre-IPO Owners collectively Beneficially Own at least 5% (but less than 20%) of the Voting Securities as of the record date for such meeting, the lowest whole number
(such number always being equal to or greater than one) that is greater than 10% of the Total Number of Directors. 
 (b) If at any time the
Stockholder Designator has designated fewer than the total number of individuals that the Stockholder Designator is then entitled to designate pursuant to Section 2.1(a) hereof, the Stockholder Designator shall have the
right, at any time and from time to time, to designate such additional individuals which it is entitled to so designate, in which case, any individuals nominated by or at the direction of the Board or any duly-authorized committee thereof for
election as Directors to fill any vacancy on the Board shall include such designees, and the Company shall use its best efforts to (x) effect the election of such additional designees, whether by increasing the size of the Board or otherwise,
and (y) cause the election of such additional designees to fill any such newly-created vacancies or to fill any other existing vacancies. Each such individual whom the Stockholder Designator shall actually designate pursuant to this
Section 2.1 and who is thereafter elected and qualifies to serve as a Director shall be referred to herein as a “Stockholder Designee.” 

(c) Directors are subject to removal pursuant to the applicable provisions of the Amended and Restated Certificate of Incorporation of the
Company; provided, however, for as long as this Agreement remains in effect, Stockholder Designees may only be removed without cause with the consent of the Stockholder Designator, delivered in accordance with Section 5.13
hereof. 
 (d) In the event that a vacancy is created at any time by death, disability, retirement, removal (with or without cause),
disqualification, resignation or other cause with respect to any Stockholder Designee, any individual nominated by or at the direction of the Board or any duly-authorized committee thereof to fill such vacancy shall be, and the Company shall use its
best efforts to cause such vacancy to be filled, as soon as possible, by a new designee of the Stockholder Designator, and the Company shall take or cause to be taken, to the fullest extent permitted by law, at any time and from time to time, all
actions necessary to accomplish the same. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 (e) The Company shall, to the fullest extent permitted by law, include in the slate of
nominees recommended by the Board at any meeting of stockholders called for the purpose of electing directors (or consent in lieu of meeting), the persons designated pursuant to this Section 2.1 and use its best efforts to
cause the election of each such designee to the Board, including nominating each such individual to be elected as a Director as provided herein, recommending such individual’s election and soliciting proxies or consents in favor thereof. In the
event that any Stockholder Designee shall fail to be elected to the Board at any meeting of stockholders called for the purpose of electing directors (or consent in lieu of meeting), the Company shall use its best efforts to cause such Stockholder
Designee (or a new designee of the Stockholder Designator) to be elected to the Board, as soon as possible, and the Company shall take or cause to be taken, to the fullest extent permitted by law, at any time and from time to time, all actions
necessary to accomplish the same, including, without limitation, actions to effect an increase in the Total Number of Directors. 
 (f) In
addition to any vote or consent of the Board or the stockholders of the Company required by applicable Law or the certificate of incorporation or bylaws of the Company, and notwithstanding anything to the contrary in this Agreement, for so long as
this Agreement is in effect, any action by the Board to increase or decrease the Total Number of Directors (other than any increase in the Total Number of Directors in connection with the election of one or more Directors elected exclusively by the
holders of one or more classes or series of the Company’s shares other than Common Stock) shall require the prior written consent of the Stockholder Designator, delivered in accordance with Section 5.13 hereof. 

(g) For so long as the Directors on the Board are divided into three classes, such Stockholder Designees shall be apportioned among such
classes so as to maintain the number of such Stockholder Designees in each class as nearly equal as possible. 
 2.2 Compensation.
Except to the extent the Stockholder Designator may otherwise notify the Company, the Stockholder Designees shall be entitled to compensation consistent with the compensation received by other non-employee
Directors, including any fees and equity awards, provided, that (x) to the extent any Director compensation is payable in the form of equity awards, at the election of a Stockholder Designee, in lieu of any equity award, such compensation shall
be paid in an amount of cash equal to the value of the equity award as of the date of the award, with any such cash subject to the same vesting terms, if any, as the equity awarded to other Directors and (y) at the election of a Stockholder
Designee, any Director compensation (whether cash, equity awards and/or cash in lieu of equity as may be designated by the electing Stockholder Designee) shall be paid to a Stockholder or an Affiliate thereof specified by such Stockholder Designee
rather than to such Stockholder Designee. If the Company adopts a policy that Directors own a minimum amount of equity in the Company, Stockholder Designees shall not be subject to such policy. 

 
 2.3 Other Rights of Stockholder Designees. Except as provided in
Section 2.2, each Stockholder Designee serving on the Board shall be entitled to the same rights and privileges applicable to all other members of the Board generally or to which all such members of the Board are entitled. In furtherance of the
foregoing, the Company shall indemnify, exculpate, and reimburse fees and expenses of the Stockholder Designees (including by entering into an indemnification agreement in a form substantially similar to the Company’s form director
indemnification agreement) and provide the Stockholder Designees with director and officer insurance to the same extent it indemnifies, exculpates, reimburses and provides insurance for the other members of the Board pursuant to the certificate of
incorporation or bylaws of the Company, applicable law or otherwise. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 ARTICLE III. 

INFORMATION; VCOC 
 3.1 Books
and Records; Access. The Company shall, and shall cause its Subsidiaries to, keep proper books, records and accounts, in which full and correct entries shall be made of all financial transactions and the assets and business of the Company
and each of its Subsidiaries in accordance with generally accepted accounting principles. The Company shall, and shall cause its Subsidiaries to, (a) permit the Stockholder Entities and their respective designated representatives (or other
designees), at reasonable times and upon reasonable prior notice to the Company, to review the books and records of the Company or any of such Subsidiaries and to discuss the affairs, finances and condition of the Company or any of such Subsidiaries
with the officers of the Company or any such Subsidiary and (b) provide the Stockholder Entities all information of a type, at such times and in such manner as is consistent with the Company’s past practice or that is otherwise reasonably
requested by such Stockholder Entities from time to time (all such information so furnished pursuant to this Section 3.1, the “Information”). Subject to Section 3.5, any Stockholder Entity (and any
party receiving Information from a Stockholder Entity) who shall receive Information shall maintain the confidentiality of such Information. Notwithstanding the foregoing, that the Company shall not be required to disclose any privileged Information
of the Company so long as the Company has used commercially reasonable efforts to enter into an arrangement pursuant to which it may provide such information to the Stockholder Entities without the loss of any such privilege. 

3.2 Tax-Related Information. The Company shall promptly make available to the Stockholder
Entities all books, records and files of the Company and its Subsidiaries with respect to tax matters as may be reasonably requested by the Stockholder Entities and shall use reasonable efforts to comply with any requests by the Stockholder Entities
for any tax-related information (including any applicable state withholdings) of any entity (i) which owns, directly or indirectly, all or a portion of the equity of the Company and (ii) in which any
of the Stockholder Entities and the Company’s management own, directly or indirectly, all or a portion of the equity. 
 3.3 Certain
Reports. The Company shall deliver or cause to be delivered to the Stockholder Entities, at their request: 
 (a) to the extent
otherwise prepared by the Company, operating and capital expenditure budgets and periodic information packages relating to the operations and cash flows of the Company and its Subsidiaries; and 

(b) to the extent otherwise prepared by the Company, such other reports and information as may be reasonably requested by the Stockholder
Entities; provided, however, that the Company shall not be required to disclose any privileged information of the Company so long as the Company has used commercially reasonable efforts to enter into an arrangement pursuant to which it
may provide such information to the Stockholder Entities without the loss of any such privilege. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 3.4 VCOC.

(a) With respect to each Stockholder Entity that is intended to qualify its direct or indirect investment in the Company as a “venture
capital investment” as defined in the Department of Labor regulations codified at 29 CFR Section 2510.3-101 (the “Plan Asset Regulation”) (each, a “VCOC Investor”),
for so long as the VCOC Investor, directly or through one or more subsidiaries, continues to hold any Common Stock (or other securities of the Company into which such Common Stock may be converted or for which such Common Stock may be exchanged),
without limitation or prejudice of any of the rights provided to the Stockholder Entities hereunder, the Company shall, with respect to each such VCOC Investor: 
  

	 	(i)	 provide each VCOC Investor or its designated representative with: 



 

	 	(A)	 upon reasonable notice and at mutually convenient times, the right to visit and inspect any of the offices and
properties of the Company and its Subsidiaries and inspect and copy the books and records of the Company and its Subsidiaries; 


  

	 	(B)	 as soon as available and in any event within 45 days after the end of each of the first three quarters of each
fiscal year of the Company, consolidated balance sheets of the Company and its Subsidiaries as of the end of such period, and consolidated statements of income and cash flows of the Company and its Subsidiaries for the period then ended prepared in
conformity with generally accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, and subject to the absence of footnotes and to year-end
adjustments; 


  

	 	(C)	 as soon as available and in any event within 120 days after the end of each fiscal year of the Company, a
consolidated balance sheet of the Company and its Subsidiaries as of the end of such year, and consolidated statements of income and cash flows of the Company and its Subsidiaries for the year then ended prepared in conformity with generally
accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, together with an auditor’s report thereon of a firm of established national reputation; 



 

	 	(D)	 to the extent the Company is required by law or pursuant to the terms of any outstanding indebtedness of the
Company to prepare such reports, any annual reports, quarterly reports and other periodic reports pursuant to Section 13 or 15(d) of the Exchange Act, actually prepared by the Company as soon as available; and 



  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 


	 	(E)	 upon written request by the VCOC Investor, copies of all materials provided to the Board, subject to
appropriate protections with respect to confidentiality and preservation of attorney-client privilege; 


 provided,
that, in each case, if the Company makes the information described in clauses (B), (C) and (D) of this Section 3.3(a)(i) available through public filings on the EDGAR System or any successor or
replacement system of the U.S. Securities and Exchange Commission, the requirement to deliver such information shall be deemed satisfied; 

(ii) make appropriate officers and/or Directors of the Company available, and cause the officers and directors of its
Subsidiaries to be made available, periodically and at such times as reasonably requested by each VCOC Investor, upon reasonable notice and at mutually convenient times, for consultation with such VCOC Investor or its designated representative with
respect to matters relating to the business and affairs of the Company and its Subsidiaries; 
 (iii) to the extent that the
VCOC Investor requests to receive such information and rights, and to the extent consistent with applicable Law or listing standards (and with respect to events which require public disclosure, only following the Company’s public disclosure
thereof through applicable securities law filings or otherwise), inform each VCOC Investor or its designated representative in advance with respect to any significant corporate actions, and to provide (or cause to be provided) each VCOC Investor or
its designated representative with the right to consult with the Company and its Subsidiaries with respect to such actions should the VCOC Investor elect to do so; provided, however, that this right to consult must be exercised within
five days after the Company informs the VCOC Investor of the proposed corporate action; provided, further, that the Company shall be under no obligation to provide the VCOC Investor with any material
non-public information with respect to such corporate action; and 
 (iv) provide
each VCOC Investor or its designated representative with such other rights of consultation which the VCOC Investor’s counsel may determine in writing to be reasonably necessary under applicable legal authorities promulgated after the date
hereof to qualify its investment in the Company as a “venture capital investment” for purposes of the Plan Asset Regulation; provided that the parties agree that any such rights of consultation shall be of a nature consistent with
those granted above and nothing in this Agreement shall be deemed to require the Company to grant to the VCOC Investor any additional rights with respect to the governance or management of the Company. 

(b) The Company agrees to consider, in good faith, the recommendations of each VCOC Investor or its designated representative in connection
with the matters on which it is consulted as described above in this Section 3.3, recognizing that the ultimate discretion with respect to all such matters shall be retained by the Company. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 (c) In the event a VCOC Investor or any of its Affiliates Transfers all or any portion of
their investment in the Company to an Affiliated entity that is intended to qualify its investment in the Company as a “venture capital investment” (as defined in the Plan Asset Regulation), such Transferee shall be afforded the same
rights with respect to the Company afforded to the VCOC Investor hereunder and shall be treated, for such purposes, as a third party beneficiary hereunder. 

(d) In the event that the Company ceases to qualify as an “operating company” (as defined in the first sentence of 2510.3-101(c)(1) of the Plan Asset Regulation), or the investment in the Company by a VCOC Investor does not qualify as a “venture capital investment” as defined in the Plan Asset Regulation, then the
Company and each Stockholder Entity will cooperate in good faith and take all reasonable actions necessary, subject to applicable Law, to preserve the VCOC status of each VCOC Investor or the qualification of the investment as a “venture
capital investment,” it being understood that such reasonable actions shall not require a VCOC Investor to purchase or sell any investments. 

(e) For so long as the VCOC Investor, directly or through one or more subsidiaries, continues to hold any Common Stock (or other securities of
the Company into which such Common Stock may be converted or for which such Common Stock may be exchanged) and upon the written request of such VCOC Investor, without limitation or prejudice of any of the rights provided to the Stockholder Entities
hereunder, the Company shall, with respect to each such VCOC Investor, furnish and deliver a letter covering the matters set forth in Sections 3.3(a), 3.3(b), 3.3(c) and 3.3(d) hereof in a form and substance satisfactory
to such VCOC Investor. 
 (f) In the event a VCOC Investor is an Affiliate of a Stockholder Entity, as described in
Section 3.3(a) above, such affiliated entity shall be afforded the same rights with respect to the Company and afforded to the Stockholder Entity under this Section 3.3 and shall be treated, for such purposes, as a
third party beneficiary hereunder. 
 3.5 Confidentiality. Each Stockholder agrees that it will, and will direct its designated
representatives to, keep confidential and not disclose any Confidential Information; provided, however, that such Stockholder and its designated representatives may disclose Confidential Information to the other Stockholders, to the
Stockholder Designees and to (a) its and its affiliates’ attorneys, accountants, consultants, insurers, financing sources and other advisors in connection with such Stockholder’s investment in the Company, (b) any Person,
including a prospective purchaser of Common Stock, as long as such Person has agreed, in writing, to maintain the confidentiality of such Confidential Information, (c) any of such Stockholder’s or its respective Affiliates’ partners,
members, stockholders, directors, officers, employees or agents in the ordinary course of business (the Persons referenced in clauses (a), (b) and (c), a Stockholder’s “designated representatives”) or (d) as the Company may
otherwise consent in writing; provided, further, however, that each Stockholder agrees to be responsible for any breaches of this Section 3.4 by such Stockholder’s designated representatives. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 3.6 Information Sharing. Each party hereto acknowledges and agrees that Stockholder
Designees may share any information concerning the Company and its Subsidiaries received by them from or on behalf of the Company or its designated representatives with each Stockholder and its designated representatives (subject to such
Stockholder’s obligation to maintain the confidentiality of Confidential Information in accordance with Section 3.4). 

ARTICLE IV. 
 ADDITIONAL COVENANTS

 4.1 Pledges or Transfers. Upon the request of any Stockholder Entity that wishes to (x) pledge, hypothecate or grant
security interests in any or all of the shares of Common Stock held by it, including to banks or financial institutions as collateral or security for loans, advances or extensions of credit or (y) transfer any or all of the shares of Common
Stock held by it, including to a third party investor, the Company agrees to cooperate with each such Stockholder Entity in taking any action reasonably necessary to consummate any such pledge, hypothecation, grant or transfer, including without
limitation, delivery of letter agreements to lenders in form and substance reasonably satisfactory to such lenders (which may include agreements by the Company in respect of the exercise of remedies by such lenders), instructing the transfer agent
to transfer any such shares of Common Stock subject to the pledge, hypothecation or grant into the facilities of The Depository Trust Company without restricted legends and cooperating in diligence or other matters as may reasonably be requested by
any Stockholder Entity in connection with a proposed transfer. 
 4.2 Spin-Offs or Split-Offs. In the event that the Company effects
the separation of any portion of its business into one or more entities (each, a “NewCo”), whether existing or newly formed, including without limitation by way of spin-off, split-off, carve-out, demerger, recapitalization, reorganization or similar transaction, and any Stockholder will receive equity interests in any such NewCo as part of such
separation, the Company shall cause any such NewCo to enter into a Stockholders agreement with the Stockholders that provides the Stockholder Entities with rights
vis-á-vis such NewCo that are substantially identical to those set forth in this Agreement. 

ARTICLE V. 
 GENERAL PROVISIONS

 5.1 Termination. Except for Section 3.3 hereof, this Agreement shall terminate on the earlier to
occur of (i) such time as the Stockholder Designator is no longer entitled to designate a Director pursuant to Section 2.1(a) hereof and (ii) the delivery of a written notice by the Stockholder Designator to the
Company requesting that this Agreement terminate. The VCOC Investors shall advise the Company when they collectively first cease to beneficially own any Common Stock (or other securities of the Company into which such Common Stock may be converted
or for which such Common Stock may be exchanged), whereupon Section 3.3 hereof shall terminate. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 5.2 Notices. Any notice, designation, request, request for consent or consent
provided for in this Agreement shall be in writing and shall be either personally delivered, sent by facsimile or sent by reputable overnight courier service (charges prepaid) to the Company at the address set forth below and to any other recipient
at the address indicated on the Company’s records, or at such address or to the attention of such other Person as the recipient party has specified by prior written notice to the sending party. Notices and other such documents will be deemed to
have been given or made hereunder when delivered personally or sent by facsimile (receipt confirmed) and one (1) Business Day after deposit with a reputable overnight courier service. 

The Company’s address is: 

Apria, Inc. 
 7353 Company Drive

 Indianapolis, IN 46237 

Attention: Raoul Smyth, Executive Vice President, General Counsel and Secretary 

Email: [redacted] 
 Each
Stockholder address is: 
 The Blackstone Group Inc. 

345 Park Avenue 
 New York, New
York 10154 
 Attention: Neil P. Simpkins 

Facsimile: (212) 583-5257 

Email: [redacted] 
 5.3
Amendment; Waiver. This Agreement may be amended, supplemented or otherwise modified only by a written instrument executed by the Company and the other parties hereto. Neither the failure nor delay on the part of any party hereto to
exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any
other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver
shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
 5.4 Further
Assurances. The parties hereto will sign such further documents, cause such meetings to be held, resolutions passed, exercise their votes and do and perform and cause to be done such further acts and things necessary, proper or advisable in
order to give full effect to this Agreement and every provision hereof. To the fullest extent permitted by law, the Company shall not directly or indirectly take any action that is intended to, or would reasonably be expected to result in, the
Stockholder or any Stockholder Entity being deprived of the rights contemplated by this Agreement. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 5.5 Assignment. This Agreement may not be assigned without the express prior
written consent of the other parties hereto, and any attempted assignment, without such consents, will be null and void; provided, however, that, without the prior written consent of any other party hereto, a Stockholder may assign its
rights and obligations under this Agreement, in whole or in part, to any Transferee of Common Stock, so long as such Transferee, if not already a party to this Agreement, executes and delivers to the Company a joinder to this Agreement evidencing
its agreement to become a party to and to be bound by certain or all, as applicable, of the provisions of this Agreement as a Stockholder hereunder, whereupon such Transferee shall be deemed a “Stockholder” hereunder. This Agreement will
inure to the benefit of and be binding on the parties hereto and their respective successors and permitted assigns. 
 5.6 Third
Parties. Except as provided for in Article II, Article III and Article IV with respect to any Stockholder Entity, this Agreement does not create any rights, claims or benefits inuring to any person that is not a party
hereto nor create or establish any third party beneficiary hereto. 
 5.7 Governing Law. THIS AGREEMENT AND ITS ENFORCEMENT AND
ANY CONTROVERSY ARISING OUT OF OR RELATING TO THE MAKING OR PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

5.8 Jurisdiction; Waiver of Jury Trial. Each party hereto hereby (i) agrees that any action, directly or indirectly, arising
out of, under or relating to this Agreement shall exclusively be brought in and shall exclusively be heard and determined by either the Supreme Court of the State of New York sitting in Manhattan or the United States District Court for the Southern
District of New York, and (ii) solely in connection with the action(s) contemplated by subsection (i) hereof, (A) irrevocably and unconditionally consents and submits to the exclusive jurisdiction of the courts identified in subsection
(i) hereof, (B) irrevocably and unconditionally waives any objection to the laying of venue in any of the courts identified in clause (i) of this Section 5.8, (C) irrevocably and unconditionally waives and agrees
not to plead or claim that any of the courts identified in such clause (i) is an inconvenient forum or does not have personal jurisdiction over any party hereto, and (D) agrees that mailing of process or other papers in connection with any
such action in the manner provided herein or in such other manner as may be permitted by applicable law shall be valid and sufficient service thereof. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM OR ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE SERVICES CONTEMPLATED HEREBY. 

5.9 Specific Performance. Each party hereto acknowledges and agrees that in the event of any breach of this Agreement by any of
them, the other parties hereto would be irreparably harmed and could not be made whole by monetary damages. Each party accordingly agrees to waive the defense in any action for specific performance that a remedy at law would be adequate and agrees
that the parties, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to specific performance of this Agreement without the posting of a bond. 

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 5.10 Entire Agreement. This Agreement sets forth the entire understanding of the
parties hereto with respect to the subject matter hereof. There are no agreements, representations, warranties, covenants or understandings with respect to the subject matter hereof or thereof other than those expressly set forth herein and therein.
This Agreement supersedes all other prior agreements and understandings between the parties with respect to such subject matter. 
 5.11
Severability. If any provision of this Agreement, or the application of such provision to any Person or circumstance or in any jurisdiction, shall be held to be invalid or unenforceable to any extent, (i) the remainder of this Agreement
shall not be affected thereby, and each other provision hereof shall be valid and enforceable to the fullest extent permitted by law, (ii) as to such Person or circumstance or in such jurisdiction such provision shall be reformed to be valid
and enforceable to the fullest extent permitted by law, and (iii) the application of such provision to other Persons or circumstances or in other jurisdictions shall not be affected thereby. 

5.12 Table of Contents, Headings and Captions. The table of contents, headings, subheadings and captions contained in this
Agreement are included for convenience of reference only, and in no way define, limit or describe the scope of this Agreement or the intent of any provision hereof. 

5.13 Grant of Consent. Any vote, consent or approval of, or designation by, or other action of, the Stockholder Designator
hereunder shall be effective if notice of such vote, consent, approval, designation or action is provided in accordance with Section 5.2 hereof by the Stockholder Designator as of the latest date any such notice is so
provided to the Company. 
 5.14 Counterparts. This Agreement and any amendment hereto may be signed in any number of separate
counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one Agreement (or amendment, as applicable). 

5.15 Effectiveness. This Agreement shall become effective upon the Closing Date. 

5.16 No Recourse. This Agreement may only be enforced against, and any claims or cause of action that may be based upon, arise out
of or relate to this Agreement, or the negotiation, execution or performance of this Agreement, the transactions contemplated hereby or the subject matter hereof may only be made against the parties hereto and no past, present or future Affiliate,
director, officer, employee, incorporator, member, manager, partner, stockholder, agent, attorney or representative of any party hereto or any past, present or future Affiliate, director, officer, employee, incorporator, member, manager, partner,
stockholder, agent, attorney or representative of any of the foregoing (each, a “Non-Recourse Party”) shall have any liability for any obligations or liabilities of the parties to this
Agreement or for any claim based on, in respect of, or by reason of, the transactions contemplated hereby. Without limiting the rights of any party against the other parties hereto, in no event shall any party or any of its Affiliates seek to
enforce this Agreement against, make any claims for breach of this Agreement against, or seek to recover monetary damages from, any Non-Recourse Party. 

[Remainder of Page Intentionally Left Blank] 
  

  
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 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written. 
  

			
	COMPANY
	
	APRIA, INC.
		
	By:	 	
                     
    

	Name:	 	
	Title:	 	


 [Signature Page to Apria, Inc. Stockholders Agreement] 

  














 Apria, Inc. has requested confidential treatment of this registration statement and
associated correspondence 
 pursuant to Rule 83 of the Securities and Exchange Commission. 

 

 
			
	STOCKHOLDERS
	
	[                                    
                                         
    ]
		
	By:	 	[                                     ]
		
	By:	 	[                                    
]


 
			
		
	By:	 	
                     
            



 
			
		 	Name:
		 	Title:



  
 [Signature Page to
Apria, Inc. Stockholders Agreement]