Document:

EX-10.40

 Exhibit 10.40 

 
 

 
 26220 Enterprise Court 
 Lake Forest, California 92630 
 Tel 949.639.2000 

February 19, 2013 
 Peter A. Reynolds

 1934 Port Locksleigh Place 
 Newport
Beach, CA 92660 
 Pete, 
 In
consideration for assuming the role of principal financial officer for Apria Healthcare Group Inc. effective January 1, 2013, the compensation package being offered to you consists of the following: 

 

	 	•	 	 Your annual base salary will be increased from $279,053 to $375,000 retroactive to January 1, 2013. 

 

	 	•	 	 You will be eligible for a retention bonus equal to 100% of your base salary, pro-rated from January 1, 2013 through your termination date (but
not to exceed 100%). This retention bonus will be in lieu of participation in the 2013 Incentive Compensation Plan (ICP) or any other Apria bonus program. 

 

	 	•	 	 Your severance will be based on the terms outlined in your Amended and Restated Executive Severance Agreement dated September 26, 2008, and will
consist of the sum of your new salary of $375,000, the average of that new salary and your annual bonus payout in respect of the 2012 year, and the applicable annual cost of obtaining your medical, dental and vision insurance under COBRA.

 The following outlines the parameters of the retention bonus: 

 

	 	1.	The retention bonus will be paid to you in a lump sum, less all applicable state and federal taxes and other lawful withholdings. We expect to pay the bonus to you
during the first payroll period that begins after the date your Separation Agreement and General Release becomes effective, as outlined below (but no later than March 15, 2014). 

  
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	 	2.	By signing below you are acknowledging that you understand you are only eligible for a retention bonus if you stay with Apria Healthcare Group Inc., or one of its
affiliates (the “Company”), in your current role, or any role that you are transferred to within the Company, through the end of the Retention Period described below. 

 

	 	3.	For you to qualify for and receive payment of the retention bonus you must satisfy the following requirements: 

 

	 	•	 	 Remain continuously employed with the Company, assisting in any work assignments from the date hereof until such time that a Chief Financial Officer is
hired and/or it is determined by the Company that your services are no longer required (the “Retention Period”). This Retention Period is anticipated to end on or prior to December 31, 2013. 

 

	 	•	 	 Continue to meet the standards of performance expected of all Company employees. 

 

	 	•	 	 You must execute and deliver to the Company, and not revoke, a separation agreement and general release (the “General Release”) satisfactory
to the Company, releasing the Company from any and all liability relating to your employment. The General Release cannot be signed until on or after the last day of the Retention Period. 

 

	 	•	 	 You will have 21 days from the day you receive your General Release to consider whether you wish to sign it and/or to consult an attorney if you wish.
You may also choose to sign the General Release during the 21-day consideration period, as long as the last day of the Retention Period has already passed. 

 

	 	•	 	 You also will have 7 days after you sign the General Release to revoke your acceptance. If you do not revoke your acceptance during this 7-day
revocation period, the General Release will become effective after the revocation period expires. If the 28-day period consisting of your 21-day review period and your 7-day revocation period begins during one calendar year and ends during a
subsequent calendar year, then the retention payment shall be payable no earlier than the first day of the subsequent calendar year. 

  

	 	4.	Although this offer is not a guarantee of continued employment or a modification of your “at will” employment status, we expect that your position will be
needed through the Retention Period. If your employment with the Company is terminated prior to the end of the Retention Period, the amount of compensation payable to you at that time, if any, will be determined by the following rules:

  

	 	•	 	 If you are involuntarily terminated by Apria for reasons other than unsatisfactory work performance or for a serious offense (as outlined in the
Standards of Performance and Conduct Policy) prior to the end of the Retention Period, you will still be eligible for the retention bonus described above. 

  
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	 	•	 	 If you voluntarily resign your employment prior to the end of the Retention Period, you will no longer be eligible for the retention bonus.

  

	 	•	 	 If the Company, in its sole discretion, determines that your employment was terminated for any other reason, including unsatisfactory work performance
or a serious offense, you will not be entitled to and will not receive the retention bonus. 

 If you are in agreement with
the terms and provisions above, please indicate your acceptance of these arrangements by signing below and returning to me a copy of this letter. 
 Very truly yours, 
 /s/ John G. Figueroa 
 John G. Figueroa 
 Chief Executive Officer 

Accepted and Agreed: 
  

			
	 /s/ Peter A. Reynolds

	Peter A. Reynolds
	Date:	 	 February 19,
2013            

  
 Page 3EX-10.41

 Exhibit 10.41 
 MANAGEMENT UNIT SUBSCRIPTION AGREEMENT 
 (Class A-2 Units) 

THIS MANAGEMENT UNIT SUBSCRIPTION AGREEMENT (this “Agreement”) by and between BP Healthcare Holdings LLC, a Delaware
limited liability company (the “Company”), and the individual named on the Executive Master Signature Page hereto (“Executive”) is made as of the date set forth on such Executive Master Signature Page. 

WHEREAS, on the terms and subject to the conditions hereof, Executive desires to subscribe for and acquire from the Company, and the
Company desires to issue and provide to Executive, the Company’s Class A-2 Units (the “Units”), in each case in the amount set forth on Executive’s Master Signature Page, as hereinafter set forth; and 

WHEREAS, this Agreement is one of several agreements being entered into by the Company or its Affiliates with certain persons who are or
will be key employees or advisors of the Company or one or more Subsidiaries (collectively with Executive, the “Management Investors”) as part of a management equity purchase plan designed to comply with Regulation D or Rule 701, as
applicable, promulgated under the Securities Act (as defined below); 
 NOW, THEREFORE, in order to implement the foregoing and
in consideration of the mutual representations, warranties, covenants and agreements contained herein, the parties hereto agree as follows: 
  

	1.	Definitions. 

 1.1
Affiliate. An “Affiliate” of, or Person “Affiliated” with, a specified Person shall mean a Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under
common control with, the Person specified. 
 1.2 Agreement. The term “Agreement” shall have the meaning set
forth in the preface. 
 1.3 Blackstone. The term “Blackstone” means Blackstone Capital Partners V L.P. and its
Affiliates. 
 1.4 Board. The “Board” shall mean the Company’s Board of Directors. 

1.5 Cause. The term “Cause” shall mean (A) Executive’s willful and continued failure to substantially perform
Executive’s duties to the Company or any of its Subsidiaries or Affiliates (other than as a result of total or partial incapacity due to physical or mental illness or as a result of Executive resigning as Chief Executive Officer of Apria) which
failure has continued for a period of at least 20 days following delivery to Executive of written demand by the Company or any of its Subsidiaries or Affiliates specifying the manner in which Executive has willfully failed to so perform;
(B) Advisor’s engagement in fraud or willful dishonesty (other than dishonesty that has no material detrimental impact on the reputation or business of the Company and its Affiliates); (C) any act on the part of Executive that
constitutes a felony (other than traffic offenses), or its equivalent under applicable non-U.S. law (provided that if Executive’s employment is terminated for “Cause” as a result of any such act, but is not 

 
convicted in respect of, and does not plead guilty or nolo contendere to, the applicable conduct before a court of competent jurisdiction, then the Company shall have the burden of establishing
by clear and convincing evidence that such conduct occurred and could reasonably be expected to have a material detrimental impact on the reputation or business of the Company and its Affiliates (and the failure to so satisfy such burden shall
result in the termination of Executive’s employment being without Cause) or (D) Executive’s material breach of the provisions of Appendix A hereto; provided, further, that “Cause” shall cease to exist for an
event on the 90th day following the later of its occurrence or the knowledge thereof by a majority of the Board, unless the Company or any of its Subsidiaries or Affiliates has given Executive written notice thereof prior to such date. A termination
of Executive shall not be deemed with Cause unless and until there shall have been delivered to Executive a copy of a finding duly approved by a majority of the entire membership of the Board (not including Executive), concluding that, in the good
faith opinion of such majority, Executive has engaged in the conduct described in one or more of the clauses above, specifying the particulars thereof in reasonable detail and demonstrating that no cure by Executive was effected following giving
Executive 20 days to cure the negative impact of such conduct after written notice by the Company or any of its Subsidiaries or Affiliates to Executive of such conduct, or, in the Board’s good faith reasonable judgment, no cure was possible.

 1.6 Closing. The term “Closing” shall have the meaning set forth in Section 2.2. 

1.7 Closing Date. The term “Closing Date” shall have the meaning set forth in Section 2.2. 

1.8 Company. The term “Company” shall have the meaning set forth in the preface. 

1.9 Cost. The term “Cost” shall mean the price per Unit paid by Executive as proportionately adjusted for all subsequent
distributions of Units and other recapitalizations and less the amount of any distributions (excluding tax distributions) made with respect to the Units pursuant to the Company’s organizational documents; provided that “Cost” may not
be less than zero. 
 1.10 Employee and Employment. The term “employee” shall mean, without any
inference as to negate Executive’s status as a member of the Company for all purposes hereunder (subject to the terms hereof) and for federal and other tax purposes, any employee (as defined in accordance with the regulations and revenue
rulings then applicable under Section 3401(c) of the Internal Revenue Code of 1986, as amended) of the Company or any of its Subsidiaries, and the term “employment” shall include service as a part- or full-time employee or
advisor or board member to the Company or any of its Subsidiaries. 
 1.11 Executive. The term “Executive”
shall have the meaning set forth in the preface. 
 1.12 Executive’s Group. The term “Executive’s
Group” shall have the meaning set forth in Section 4.1(a). 
 1.13 Fair Market Value. The term “Fair
Market Value” used in connection with the value of Units shall mean (a) if there is a public market for the equity of the Company, Holdings or Apria on the applicable date, the value for the Units shall be implied by the average of the

  
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high and low closing bid prices of such equity during the last 10 trading days on the stock exchange on which the equity is principally trading or (b) if there is no public market for the
equity on such date, the value for the Units shall be determined in good faith by the Board after consultation with Executive and the Chief Executive Officer and Chief Financial Officer of Apria, in either case assuming, for purposes of determining
Fair Market Value, application of the distribution and dissolution provisions contained in Sections 4.4 and 5.2(b) of the LLC Agreement; provided, however, if such Fair Market Value determination occurs more than three months removed
from the most recent third-party valuation with respect to such equity, the Board shall be required to obtain a current valuation from a nationally recognized third-party valuation firm selected by the Board and reasonably acceptable to Executive
prior to making such determination of Fair Market Value (unless Executive and the Board can mutually agree on Fair Market Value prior to such determination). 
 1.14 Financing Default. The term “Financing Default” shall mean an event which would constitute (or with notice or lapse of time or both would constitute) an event of default under any of
the financing documents of the Company or its Affiliates from time to time (collectively, the “Financing Agreements”). 
 1.15 LLC Agreement. The term “LLC Agreement” shall have the meaning set forth in the Securityholders Agreement. 
 1.16 Management Investors. The term “Management Investors” shall have the meaning set forth in the preface. 
 1.17 Merger Agreement. The term “Merger Agreement” shall mean the Agreement and Plan of Merger by and among Apria Healthcare Group Inc., a Delaware corporation (“Apria”),
Sky Acquisition LLC, a Delaware limited liability company (“Holdings”), and Sky Merger Sub Corporation, a Delaware corporation, dated as of June 18, 2008. 

1.18 Permitted Transferee. The term “Permitted Transferee” means any Person to whom Executive transfers Units in
accordance with the Securityholders Agreement (other than the Sponsor and the Company and their respective Affiliates and except for transfers pursuant to a Public Offering). 
 1.19 Person. The term “Person” shall mean any individual, corporation, partnership, limited liability company, trust, joint stock company, business trust, unincorporated association,
joint venture, governmental authority or other entity of any nature whatsoever. 
 1.20 Public Offering. The term
“Public Offering” shall have the meaning set forth in the Securityholders Agreement. 
 1.21 Purchase Price.
The term “Purchase Price” shall have the meaning set forth in Section 2.1. 
 1.22 Securities Act. The
term “Securities Act” shall mean the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder, as the same may be amended from time to time. 

  
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 1.23 Securityholders Agreement. The term “Securityholders Agreement” shall
mean the Securityholders Agreement dated as of the date hereof among the Sponsor, one or more Management Investors and the Company, as it may be amended or supplemented thereafter from time to time. 

1.24 Sponsor. The term “Sponsor” means Blackstone. 

1.25 Subsidiary. The term “Subsidiary” means any corporation, limited liability company, partnership or other entity
with respect to which another specified entity has the power to vote or direct the voting of sufficient securities to elect directors (or comparable authorized persons of such entity) having a majority of the voting power of the board of directors
(or comparable governing body) of such entity. 
 1.26 Termination Date. The term “Termination Date” means the
date upon which Executive’s employment with the Company and its Subsidiaries is terminated. 
  

	2.	Subscription for and Purchase of Units. 

 2.1 Purchase of Units. Pursuant to the terms and subject to the conditions set forth in this Agreement, Executive hereby subscribes for and agrees to purchase, and the Company hereby agrees to
issue and sell to Executive, on the Closing Date, the number of Units set forth on Executive’s Master Signature Page in exchange for a payment specified on Executive’s Master Signature Page (the “Purchase Price”).

 2.2 The Closing. The closing (the “Closing”) of the acquisition of Units hereunder shall take place
one business day following the date hereof. At the Closing, Executive shall deliver to the Company the Purchase Price, payable by delivery of the amount in cash set forth on Executive’s Master Signature Page, by wire transfer in immediately
available funds. The date of the Closing shall be the “Closing Date”. 
 2.3 Closing Conditions.
Notwithstanding anything in this Agreement to the contrary, the Company shall be under no obligation to issue and sell to Executive any Units unless (i) Executive is an employee of, or consultant to, the Company or one of its Subsidiaries on
the Closing Date; (ii) the representations of Executive contained in Section 3 hereof are true and correct in all material respects as of the Closing Date and (iii) Executive is not in breach of any agreement, obligation or covenant
herein required to be performed or observed by Executive on or prior to the Closing Date. 
  

	3.	Investment Representations and Covenants of Executive and Representations of the Company. 

3.1 Units Unregistered. Executive acknowledges and represents that Executive has been advised by the Company that: 

(a) the offer and sale of the Units have not been registered under the Securities Act; 

  
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 (b) the Units must be held indefinitely and Executive must continue to bear the economic
risk of the investment in the Units unless the offer and sale of such Units are subsequently registered under the Securities Act and all applicable state securities laws or an exemption from such registration is available (or as otherwise provided
in the Securityholders Agreement); 
 (c) there is no established market for the Units and it is not anticipated that there will
be any public market for the Units in the foreseeable future; 
 (d) a restrictive legend in the form set forth below and the
legends set forth in Section 7.3(a) and (b) of the Securityholders Agreement shall be placed on the certificates, if any, representing the Units: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN REPURCHASE OPTIONS AND OTHER PROVISIONS SET FORTH IN A MANAGEMENT UNITS SUBSCRIPTION AGREEMENT WITH THE ISSUER, AS AMENDED AND
MODIFIED FROM TIME TO TIME, A COPY OF WHICH MAY BE OBTAINED BY THE HOLDER HEREOF AT THE ISSUER’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE”; and 
 (e) a notation shall be made in the appropriate records of the Company indicating that the Units are subject to restrictions on transfer and, if the Company should at some time in the future engage the
services of a securities transfer agent, appropriate stop-transfer instructions will be issued to such transfer agent with respect to the Units. 
 3.2 Additional Investment Representations . Executive represents and warrants that: 
 (a) Executive’s financial situation is such that Executive can afford to bear the economic risk of holding the Units for an indefinite period of time, has adequate means for providing for
Executive’s current needs and personal contingencies, and can afford to suffer a complete loss of Executive’s investment in the Units; 
 (b) Executive’s knowledge and experience in financial and business matters are such that Executive is capable of evaluating the merits and risks of the investment in the Units; 

(c) Executive understands that the Units are a speculative investment which involves a high degree of risk of loss of Executive’s
investment therein, there are substantial restrictions on the transferability of the Units and, on the Closing Date and for an indefinite period following the Closing, there will be no public market for the Units and, accordingly, it may not be
possible for Executive to liquidate Executive’s investment in case of emergency, if at all; 
 (d) the terms of this
Agreement provide that if under certain circumstances Executive ceases to be an employee of the Company or its Subsidiaries, the Company and its Affiliates may have the right to repurchase the Units at a price which may, under certain circumstances,
be less than the Fair Market Value thereof; 

  
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 (e) Executive understands and has taken cognizance of all the risk factors related to the
purchase of the Units and, other than as set forth in this Agreement, no representations or warranties have been made to Executive or Executive’s representatives concerning the Units or the Company or their prospects or other matters;

 (f) Executive has been given the opportunity to examine all documents and to ask questions of, and to receive answers from,
the Company and its representatives concerning the Company and its Subsidiaries, the Securityholders Agreement, the Company’s organizational documents and the terms and conditions of the purchase of the Units and to obtain any additional
information which Executive deems necessary; 
 (g) all information which Executive has provided to the Company and the
Company’s representatives concerning Executive and Executive’s financial position is complete and correct in all material respects as of the date of this Agreement; and 

(h) Executive is or is not an “accredited investor” within the meaning of Rule 501(a) under the Securities Act, as indicated on
Executive’s Master Signature Page. 
 3.3 Other Representations. Executive acknowledges that Blackstone and its
Affiliates may, from time to time, provide services to the Company and its Affiliates for which a fee will be paid by the Company or its Affiliates, including an annual monitoring/advisory fee. 

3.4 Representations and Warranties of the Company. 
 (a) Organization. The Company (i) is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and (ii) has the requisite
power and authority to own or lease and operate its assets and carry on its business. 
 (b) Authorization. The Company
(or its Affiliate party thereto) has the requisite power and authority to enter into this Agreement, the LLC Agreement, the Employment Agreement dated as of the date hereof between Executive, the Company, Holdings and Apria (the “Employment
Agreement”) and the Securityholders Agreement (together, the “Transaction Documents”). The execution, delivery and performance by the Company of this Agreement and each of the other Transaction Documents and the
consummation by the Company of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company. 
 (c) Due Issuance and Authorization of Units. The Units being issued pursuant to this Agreement have been duly authorized and upon issuance in accordance with the terms of this Agreement, will be
duly authorized, validly issued, fully paid and nonassessable (to the extent such concepts are legally applicable to membership interests in a Delaware limited liability company). 

 

	4.	Certain Sales and Forfeitures Upon Termination of Employment; Variations to Securityholders Agreement. 

  
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 4.1 Put Option. 

(a) Prior to the occurrence of the initial Public Offering, if Executive’s employment with the Company and its Subsidiaries
terminates due to the death of Executive, Executive and Executive’s Permitted Transferees (hereinafter sometimes collectively referred to as “Executive’s Group”) shall have the right, subject to the provisions of
Section 5 hereof, for 180 days following the Termination Date, to sell to the Company (the “Put Right”), and the Company shall be required to purchase (subject to the provisions of Section 5 hereof), on one occasion from
each member of Executive’s Group, all (but not less than all) of the number of Units then held by Executive’s Group that equals all Units collectively held by Executive’s Group at a price per Unit equal to the Fair Market Value of
such Units (measured as of the date that the relevant election to purchase such Units is delivered (the “Valuation Date”)). In order to exercise its rights with respect to the Units pursuant to this Section 4.1(a),
Executive’s Group shall also be required to simultaneously exercise any similar rights it may have with respect to any other units of the Company held by Executive’s Group in accordance with the terms of the agreements pursuant to which
such other units were acquired from the Company. 
 (b) If Executive’s Group desires to exercise the Put Right, the members
of Executive’s Group shall send one written notice to the Company setting forth such members’ intention to collectively sell all of their Units pursuant to Section 4.1(a), which notice shall include the signature of each member of
Executive’s Group. Subject to the provisions of Section 5.1, the closing of the purchase shall take place at the principal office of the Company on a date specified by the Company no later than the 30th day after the giving of such notice.

 4.2 Call Options. 
 (a) If Executive’s employment with the Company and its Subsidiaries is terminated (1) by the Company or any of its Subsidiaries with Cause (or by Executive when grounds exist for a termination
by the Company or any of its Subsidiaries with Cause; provided that the Company has delivered written notice to Executive, within 90 days of the date Executive’s employment with the Company or any of its Subsidiaries has terminated, that
the Company or any of its Subsidiaries believe grounds for Cause exist) or (2) due to the death of Executive, then the Company shall have the right, in either case, for 90 days following the Termination Date to purchase (the “Call
Option”), and each member of Executive’s Group shall be required to sell to the Company, all Units then held by such member of Executive’s Group at a price per Unit equal to the applicable purchase price determined as follows:

 (i) Termination with Cause. If Executive’s employment with the Company and its Subsidiaries is
terminated by the Company or any of its Subsidiaries with Cause (or by Executive when grounds exist for a termination by the Company or any of its Subsidiaries with Cause), the purchase price per Unit will be the lesser of (A) Fair Market Value
thereof (measured as of the Valuation Date) and (B) Cost; and 
 (ii) Death. If Executive’s
employment with the Company and its Subsidiaries is terminated due to the death of Executive, the purchase price per Unit will be the Fair Market Value thereof (measured as of the Valuation Date). 

  
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 The Call Option shall expire upon the occurrence of a Public Offering. 

(b) If the Company desires to exercise its Call Option pursuant to this Section 4.2, the Company shall send written notice to each
member of Executive’s Group of its intention to purchase Units, specifying the number of Units to be purchased (the “Call Notice”). Subject to the provisions of Section 5, the closing of the purchase shall take place at
the principal office of the Company on a date specified by the Company no later than the 30th day after the giving of the Call Notice. 
 (c) Notwithstanding the foregoing, if the Company elects not to exercise its Call Option pursuant to this Section 4.2, the Sponsor may elect to purchase such Units on the same terms and conditions
set forth in this Section 4.2 by providing written notice to each member of Executive’s Group of its intention to purchase Units. 
 4.3 Obligation to Sell Several. If there is more than one member of Executive’s Group, the failure of any one member thereof to perform its obligations hereunder shall not excuse or affect the
obligations of any other member thereof, and the closing of the purchases from such other members by the Company shall not excuse, or constitute a waiver of its rights against, the defaulting member. 

 

	5.	Certain Limitations on the Company’s Obligations to Purchase Units. 

 5.1 Prohibition of Purchases. Notwithstanding anything to the contrary contained herein, the Company shall not be obligated to purchase any Units at any time pursuant to Section 4, regardless
of whether it has delivered a notice of its election to purchase any such Units, to the extent that the purchase of such Units or the payment to the Company or one of its Subsidiaries of a cash dividend or distribution by a Subsidiary of the Company
that is necessary to fund such purchase (together with any other purchases of Units pursuant to Section 4 or pursuant to similar provisions in agreements with other employees of the Company and its Subsidiaries of which the Company has at such
time been given or has given notice and together with cash dividends and distributions necessary to fund such other purchases) would result in a violation of any law, statute, rule, regulation, policy, order, writ, injunction, decree or judgment
promulgated or entered by any federal, state, local or foreign court or governmental authority applicable to the Company or any of its Subsidiaries or any of its or their property. The Company shall, within fifteen days of learning of any such fact,
so notify the members of Executive’s Group that it is not obligated to purchase Units hereunder. 
 5.2 Payment for
Units. If at any time the Company elects or is required to purchase any Units pursuant to Section 4, the Company shall pay the purchase price for the Units it purchases (i) first, by the cancellation of any indebtedness, if any, owing
from Executive to the Company or any of its Subsidiaries (which indebtedness shall be applied pro rata against the proceeds receivable by each member of Executive’s Group receiving consideration in such repurchase) and (ii) then, by the
Company’s delivery of a check or wire transfer of immediately available funds for the remainder of the purchase price, if any, against delivery of the certificates or other instruments, if any, representing the Units so purchased, duly
endorsed; provided that if (x) any of the conditions set forth in Section 5.1 exists or (y) such purchase of Units would result in a Financing Default, in each case which prohibits such cash payment (either directly or
indirectly 

  
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as a result of the prohibition of a related cash dividend or distribution) (each a “Cash Payment Restriction”), the portion of the cash payment so prohibited may be made with
respect to the exercise of any Put Right, to the extent such payment is not prohibited, by the Company’s delivery of a junior subordinated promissory note (which shall be subordinated and subject in right of payment to the prior payment of any
debt outstanding under the senior Financing Agreements and any modifications, renewals, extensions, replacements and refunding of all such indebtedness provided that no dividends, distributions or payments shall be made with respect to the
Company’s Class A units prior to payment in full of the Junior Subordinated Note (as defined) of the Company (a “Junior Subordinated Note”) in a principal amount equal to the balance of the purchase price, payable within
ten days after the Cash Payment Restriction no longer exists, and bearing interest payable (and compounded to the extent not so paid) as of the last day of each year at the interest rate payable under the senior financing credit facilities of the
Company or its Subsidiaries (as applicable) from time to time, and all such accrued and unpaid interest payable on the date of the payment of principal (or, if applicable, the last installment of principal), with payments to be applied in the order
of: (A) first to any enforcement costs incurred by Executive or Executive’s Group, (B) second to interest and (C) third to principal (provided that the applicable member of Executive’s Group may reject (by delivery of
a written notice at the closing of the purchase and sale) the delivery of a Junior Subordinated Note as the purchase price in the case of Section 4.1(a), in which case the Put Right shall be extended until the 90th day following delivery of written notice from the Company to
Executive’s Group that the Cash Payment Restriction has lapsed, unless the Company agrees to arrange for alternative payment of the applicable purchase price in cash). In the event that a Cash Payment Restriction exists as a result of a
Financing Default and the Company or its Subsidiaries is refinancing, modifying, reviewing, extending, replacing or refunding the indebtedness that resulted in the Financing Default then the Company shall use commercially reasonable efforts to cause
such refinanced, modified, reviewed, extended, replaced or refunded indebtedness not to include any terms that would result in a Financing Default with respect to the payment for the Units as contemplated herein. The Company shall have the right set
forth in clause (i) of the first sentence of this Section 5.2 whether or not the member of Executive’s Group selling such Units is an obligor of the Company. The principal of, and accrued interest on, any such Junior Subordinated Note
may be prepaid in whole or in part at any time at the option of the Company. To the extent that the Company is prohibited from paying accrued interest, that is required to be paid on any Junior Subordinated Note prior to maturity, due to the
existence of any Cash Payment Restriction, such interest shall be cumulated, compounded calendar quarterly, and accrued until and to the extent that such Cash Payment Restriction no longer exists, at which time such accrued interest shall be
immediately paid. Notwithstanding any other provision in this Agreement, the Company may elect to pay the purchase price hereunder in shares or other equity securities of one of its direct or indirect Subsidiaries with a fair market value equal to
the applicable purchase price, provided that such Subsidiary promptly repurchases such shares or other equity securities for cash equal to the applicable purchase price or a Junior Subordinated Note (if otherwise permissible hereunder) with a
principal amount equal to the applicable purchase price. 
 6.      Competitive Activity. Executive
acknowledges and recognizes the highly competitive nature of the businesses of the Company and its Affiliates and accordingly agrees, in his capacity as an investor and equityholder in the Company and its Affiliates, to the provisions of Appendix A
to this Agreement. 

  
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	7.	Miscellaneous. 

 7.1
Transfers. Prior to the transfer of Units to a Permitted Transferee, Executive shall deliver to the Company a written agreement of the proposed transferee (a) evidencing such Person’s undertaking to be bound by the terms of this
Agreement and (b) acknowledging that the Units transferred to such Person will continue to be Units for purposes of this Agreement in the hands of such Person. Any transfer or attempted transfer of Units in violation of any provision of this
Agreement or the Securityholders Agreement shall be void, and the Company shall not record such transfer on its books or treat any purported transferee of such Units as the owner of such Units for any purpose. 

7.2 Recapitalizations, Exchanges, Etc., Affecting Units. The provisions of this Agreement shall apply, to the full extent set
forth herein with respect to the Units, to any and all securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for, or in
substitution of the Units, by reason of any dividend payable in Units, issuance of Units, combination, recapitalization, reclassification, merger, consolidation or otherwise. 
 7.3 Executive’s Employment by the Company. Nothing contained in this Agreement shall be deemed to obligate the Company or any Subsidiary of the Company to employ Executive in any capacity
whatsoever or to prohibit or restrict the Company (or any such Subsidiary) from terminating the employment of Executive at any time or for any reason whatsoever, with or without Cause. 

7.4 Cooperation. Executive agrees to cooperate with the Company in taking action reasonably necessary to consummate the
transactions contemplated by this Agreement. 
 7.5 Binding Effect. The provisions of this Agreement shall be binding
upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns; provided, however, that no Transferee shall derive any rights under this Agreement unless and until such
Transferee has executed and delivered to the Company a valid undertaking and becomes bound by the terms of this Agreement; and provided further that the Sponsor is a third party beneficiary of this Agreement and shall have the right to
enforce the provisions hereof. 
 7.6 Amendment; Waiver. This Agreement may be amended only by a written instrument
signed by the parties hereto. No waiver by any party hereto of any of the provisions hereof shall be effective unless set forth in a writing executed by the party so waiving. 
 7.7 Governing Law; Jurisdiction. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed
therein. Any suit, action or proceeding with respect to this Agreement, or any judgment entered by any court in respect of any thereof, shall be brought in any court of competent jurisdiction in the State of New York or the State of Delaware, and
each of the Company and the members of Executive’s Group hereby submits to the exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment. Each of the members of Executive’s Group and the Company
hereby irrevocably waives (i) any objections 

  
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which it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any court of competent jurisdiction in the
State of Delaware or the State of New York, (ii) any claim that any such suit, action or proceeding brought in any such court has been brought in any inconvenient forum and (iii) any right to a jury trial. 

7.8 Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when
delivered by hand or overnight courier or three postal delivery days after it has been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below in this Agreement, or to
such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt. 

(a) If to the Company: 
 BP Healthcare Holdings LLC 
 345 Park Avenue 

New York, NY 10154 
 Attention: Neil P. Simpkins 
 with a copy (which shall not constitute notice) to:

 The Blackstone Group 
 345 Park Avenue 
 New York, NY 10154 

Attention: Neil P. Simpkins 
 and 
 Simpson Thacher & Bartlett LLP 

425 Lexington Avenue 
 New York, NY 10017-3954 
 Attention: Gregory T. Grogan 

If to Executive: 
 Norman C. Payson 
 NCP, Inc., Suite 3 

8 Centre Street 

Concord, NH 03301 
 with a copy to: 
 Skadden Arps Slate Meagher & Flom LLP 

Four Times Square 

New York, New York 10036 
 Attention:         Paul T. Schnell 

                       
  Neil P. Stronski 
 7.9 Integration. This Agreement and the documents referred to herein (including referred
to in the Executive Master Signature Page) or delivered pursuant hereto which form a 

  
 11 

 
part hereof contain the entire understanding of the parties with respect to the subject matter hereof and thereof. There are no restrictions, agreements, promises, representations, warranties,
covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein and therein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter.

 7.10 Counterparts. This Agreement may be executed in separate counterparts, and by different parties on separate
counterparts each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 
 7.11
Injunctive Relief. The Company, Executive and Executive’s Permitted Transferees each acknowledges and agrees that a violation of any of the terms of this Agreement will cause the Company, Executive or Executive’s Permitted
Transferees, as the case may be, irreparable injury for which adequate remedy at law is not available. Accordingly, it is agreed that the Company, Executive or Executive’s Permitted Transferees may seek an injunction, restraining order or other
equitable relief to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court of competent jurisdiction in the United States or any state thereof, in addition to any other remedy to
which it may be entitled at law or equity. 
 7.12 Rights Cumulative; Waiver. The rights and remedies of Executive and
the Company under this Agreement shall be cumulative and not exclusive of any rights or remedies which either would otherwise have hereunder or at law or in equity or by statute, and no failure or delay by either party in exercising any right or
remedy shall impair any such right or remedy or operate as a waiver of such right or remedy, nor shall any single or partial exercise of any power or right preclude such party’s other or further exercise or the exercise of any other power or
right. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by either party to exercise any right or privilege hereunder
shall be deemed a waiver of such party’s rights or privileges hereunder or shall be deemed a waiver of such party’s rights to exercise the same at any subsequent time or times hereunder. 

*    *    *    *    * 

  
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*    *    *    *    *

 
 This Subscription Agreement between the Company and the Executive
named on the Executive Master Signature Page hereto is dated and executed as of the date set forth on such Executive Master Signature Page.
  

*    *    *    *    *

 Appendix A 

Restrictive Covenants 
  

	 	1.	Non-Compete; Non-Solicit. 

(a) For the purposes of this Appendix A, any reference to the “Company” shall mean the Company and its Subsidiaries,
collectively. In view of the fact that Executive’s work for the Company brings Executive into close contact with many confidential affairs of the Company not readily available to the public, and plans for further developments, Executive agrees:

 (i) to keep and retain in the strictest confidence all confidential matters of the Company, including, without
limitation, “know how,” trade secrets, customer lists, pricing policies, operational methods, technical processes, formulae, inventions and research projects, and other business affairs of the Company, learned by Executive heretofore or
hereafter, and not to disclose them to anyone outside of the Company or its representatives, agents or advisors, either during or after Executive’s employment with the Company, except as required by applicable law, in the course of performing
Executive’s duties hereunder or with the Company’s express consent; and 
 (ii) to deliver promptly to
the Company on termination of Executive’s employment by the Company, or at any time the Company may so request, all memoranda, notes, records, reports, manuals, drawings, blueprints and other documents (and all copies thereof) relating to the
Company’s business and all property associated therewith, which Executive may then possess or have under Executive’s control; 

provided that the foregoing shall not apply to information that was or becomes generally available to the public prior to, and other than as a
result of, disclosure by Executive. 
 (b) During the period of Executive’s employment and, following termination of such
employment for any reason, for 12 months following the date of such termination, (i) Executive shall not, directly or indirectly, enter the employ of, or render any services to, any person, firm or corporation engaged in any business that
competes with a material line of business of Holdings or its Subsidiaries (subject to the following provisos, the “Business”) at any time; provided that for periods after the Termination Date, “material line of business”
will be determined as of the Termination Date; (ii) Executive shall not engage in the Business on Executive’s own account; (iii) Executive shall not invest in any such Business, directly or indirectly, as an individual, partner,
shareholder, principal, member, trustee or similar capacity and (iv) Executive shall not solicit or assist in soliciting in competition with Company in the Business, the business of any then current or prospective client or former customer with
whom Executive (or his direct reports) had personal contact or dealings on behalf of the Company; provided, however, that nothing contained in this Section 1(b) shall be deemed to prohibit (i) Executive’s involvement in
any capacity in any health plan, health insurance business or health care financing business, (ii) Executive from acquiring, solely as an investment, up to five percent (5%) of the outstanding shares of capital stock of any public
corporation or (iii) Executive’s passive investments in existence as of the date hereof. 

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(c) During the period of Executive’s employment other than in connection with Executive’s performance of services under the
Employment Agreement (or, if applicable, the Services Agreement attached thereto) and, following termination of such employment for any reason, for 24 months following the date of such termination, Executive shall not, directly or indirectly:

 (i) solicit or encourage any manager or executive of the Company to leave the employment or engagement of the
Company; or 
 (ii) hire any manager or executive of the Company who was employed by the Company as of the date
of Executive’s termination of employment with the Company or who left the employment of the Company coincident with, or within one year prior to, the termination of Executive’s employment with the Company. 

provided, however, that the foregoing clause (i) shall not preclude Executive from (A) making good faith generalized
solicitations for employees through advertisements or search firms and hiring any persons through such solicitations if Executive was not aware of such person’s prior employment with the Company; provided, that Executive does not
encourage or advise such firm to approach any such employee and such searches are not targeted or focused on the Company’s employees, or (B) responding to or hiring any employee of the Company who contacts Executive at his or her own
initiative without any prior direct or indirect encouragement or solicitation from Executive if Executive was not aware of such person’s prior employment with the Company. 

(d) If Executive commits a breach, or threatens to commit a breach, of any of the provisions of Section 1 hereof, the Company shall
have the following rights and remedies: 
 (i) the right and remedy to have the provisions of this Appendix
specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the
Company; and 
 (ii) the right and remedy to require Executive to account for and pay over to the Company all
compensation, profits, monies, accruals, increments or other benefits (collectively, “Benefits”) derived or received by Executive as the result of any transactions constituting a breach of any of the provisions of this
Section 1, and Executive hereby agrees to account for and pay over such Benefits to the Company. 
 Each of the rights and remedies
enumerated above shall be independent of the other, and shall be severally enforceable, and all of such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity.

 (e) If any of the covenants contained in Section 1 or any part thereof, hereafter are construed to be invalid or
unenforceable, the same shall not affect the remainder of the covenant or covenants, which shall be given full effect, without regard to the invalid portions. 
 (f) If any of the covenants contained in Section 1, or any part thereof, are held to be unenforceable because of the duration of such provision or the area covered thereby, the

  
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 A-3 
  

parties agree that the court making such determination shall have the power to reduce the duration and/or area of such provision and, in its reduced form, said provision shall then be
enforceable. 
 (g) The parties hereto intend to and hereby confer jurisdiction to enforce the covenants contained in
Section 1 upon the courts of any state within the geographical scope of such covenants. In the event that the courts of any one or more of such states shall hold such covenants wholly unenforceable by reason of the breadth of such covenants or
otherwise, it is the intention of the parties hereto that such determination not bar or in any way affect the Company’s right to the relief provided above in the courts of any other states within the geographical scope of such covenants as to
breaches of such covenants in such other respective jurisdictions, the above covenants as they relate to each state being for this purpose severable into diverse and independent covenants. 

(h) It is expressly understood and agreed that although Executive and the Company consider the restrictions contained in this
Section 1 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Appendix A is an unenforceable restriction against Executive, the
provisions of this Appendix A shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, if
any court of competent jurisdiction finds that any restriction contained in this Appendix A is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other
restrictions contained herein. 
 (i) The period of time during which the provisions of this Appendix shall be in effect shall
be extended by the length of time during which Executive is in breach of the terms hereof as determined by any court of competent jurisdiction on the Company’s application for injunctive relief. 

  
 3

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