Document:

Amended and Restated Employment Agreement (Lawrence A. Mastrovich)

 Exhibit 10.6 

AMENDED AND RESTATED 

EMPLOYMENT AGREEMENT 

This Amended and Restated Employment Agreement (the “Agreement”) is entered into by and between Apria Healthcare Group Inc.
(the “Company”) and Lawrence A. Mastrovich (the “Executive”), effective as of October 24, 2008. This Agreement amends and restates in its entirety that certain Employment Agreement by and between the Company and
the Executive dated as of May 5, 2006 (the “Prior Employment Agreement”). 
  

	I.	EMPLOYMENT. 

 The Company
hereby employs the Executive and the Executive hereby accepts such employment, upon the terms and conditions hereinafter set forth. The term of the employment (the “Period of Employment”) will continue until the termination of the
Executive’s employment by reason of his written resignation, termination by the Company for any reason by written notice of termination, or death, provided that for purposes of Section IV-D-3, the “Expiration Date” shall initially be
April 7, 2004, and shall be extended one (1) day for each day of the Executive’s employment during the term of this Agreement until the Executive’s employment is terminated for any reason. For instance, if the Executive’s
employment with the Company is terminated on January 1, 2003, the Expiration Date shall be December 31, 2004. The Executive’s employment may be terminated at any time by written notice from the Executive to the Company or from the
Company to the Executive, in the manner provided in Section XVIII hereof. 
  

	II.	DUTIES. 

 The Executive
shall serve during the Period of Employment as the President and Chief Operating Officer of the Company, reporting to the Chief Executive Officer. The Executive shall undertake such duties and have such authority as the Company, through its Chief
Executive Officer, shall assign to the Executive from time to time in the Company’s sole and absolute discretion, provided such duties and responsibilities are the types of duties that would ordinarily be assigned to a person with employment
experience and a position comparable to that of the Executive. Initially, the Executive shall have responsibility for the following areas: field operations, corporate logistics, corporate revenue management, clinical services and regulatory affairs
and compliance. The Executive agrees to devote substantially all of his working time and efforts to the business and affairs of the Company. The Executive further agrees that he shall not undertake any outside activities which create a conflict in
interest with his duties to the Company, or which, in the judgment of the Board of Directors of the Company, interfere with the performance of the Executive’s duties to the Company. 

 

	III.	COMPENSATION. 

 During the
Period of Employment, the Executive shall be entitled to compensation and benefits set forth in this Section III. 
  

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 A. Company will pay to the Executive a base salary at the rate of $580,000 per year. Such
salary shall be payable in periodic installments in accordance with the Company’s customary practices. Amounts payable shall be reduced by standard withholdings and other authorized deductions. The Executive’s salary may be increased from
time to time at the discretion of the Company. 
 B. Annual Bonus, Incentive, Savings and Retirement Plans. The Executive
shall be entitled to participate in all annual bonus, incentive, savings and retirement plans, practices, policies and programs applicable generally to the Chief Executive Officer of the Company, including without limitation (i) the
Company’s Executive Bonus Plan (a copy of which has been previously provided to the Executive) and (ii) the Company’s 401(k) Savings Plan. The parties to this Agreement recognize that such plans may be amended and/or terminated
by the Company at any time without the consent of the Executive in accordance with the terms of such plans. 
 C. Welfare
Benefit Plans. The Executive and/or his family, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company (including, without
limitation, medical, prescription, dental, disability, salary continuance, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to other senior executives of the Company. The Company
reserves the right to modify, suspend or discontinue any and all of the above plans, practices, policies and programs at any time without recourse by the Executive so long as such action is taken generally with respect to other similarly situated
peer executives and does not single out the Executive. 
 D. Expenses. The Executive shall be entitled to receive prompt
reimbursement for all reasonable employment expenses incurred by him in accordance with the policies, practices and procedures as in effect generally with respect to other executives of the Company. The parties to this Agreement recognize that such
policies may be amended and/or terminated by the Company at any time without the consent of the Executive. In all events, any reimbursement made to the Executive pursuant to this Section III-D shall be made not later than the end of the calendar
year following the year in which the related expense was incurred, and the amount of expenses eligible for reimbursement during any calendar year will not affect the amount of expenses eligible for reimbursement during any subsequent calendar year.

 E. Fringe Benefits. The Executive shall be entitled to fringe benefits, including without limitation
(i) reasonable travel and entertainment expenses of the Executive’s spouse, on an actually incurred basis when necessary in conjunction with participation in Company events, and (ii) such other benefits in accordance with the plans,
practices, programs and policies as may be in effect generally with respect to the Chief Executive Officer of the Company. 
 F.
Vacation. The Executive shall be entitled to four weeks of paid vacation annually, to be available and prorated monthly during the Period of Employment and otherwise to be consistent with the vacation policy and practice applicable to other
executives of the Company. 
  

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	IV.	TERMINATION. 

 A. Death
or Disability. The Executive’s employment shall terminate automatically upon the Executive’s death. If the Company determines in good faith that the Disability of the Executive has occurred (pursuant to the definition of Disability set
forth below), it may give to the Executive written notice in accordance with Section XVIII if its intention to terminate the Executive’s employment. In such event, the Executive’s employment with the Company shall terminate effective on
the 30th day after receipt of such notice by the Executive, provided that, within the 30 days after such receipt, the Executive shall not have returned to full-time performance of his duties. For purposes of this Agreement, “Disability”
shall mean a physical or mental impairment which substantially limits a major life activity of the Executive and which renders the Executive unable to perform the essential functions of his position, even with reasonable accommodation which does not
impose an undue hardship on the Company. The Company reserves the right, in good faith, to make the determination of Disability under this Agreement based upon information supplied by the Executive and/or his medical personnel, as well as
information from medical personnel (or others) selected by the Company or its insurers. 
 B. Cause. The Company may
terminate the Executive’s employment for Cause. For purposes of this Agreement (except as set forth below), “Cause” shall mean that the Company, acting in good faith based upon the information then known to the Company, determines
that the Executive has (i) engaged in or committed willful misconduct; (ii) engaged in or committed theft, fraud or other illegal conduct; (iii) refused or demonstrated an unwillingness to substantially perform his duties for a 30-day
period after written demand for substantial performance that refers to this paragraph and is delivered by the Company that specifically identifies the manner in which the Company believes the Executive has not substantially performed his duties;
(iv) refused or demonstrated an unwillingness to reasonably cooperate in good faith with any Company or government investigation or provide testimony therein (other than such failure resulting from the Executive’s disability);
(v) engaged in or committed insubordination; (vi) engaged in or committed any willful act that is likely to and which does in fact have the effect of injuring the reputation or business of the Company; (vii) willfully violated his
fiduciary duty or his duty of loyalty to the Company or the Company’s Code of Ethical Business Conduct in any material respect; (viii) used alcohol or drugs (other than drugs prescribed to the Executive by a physician and used by the
Executive for their intended purpose for which they had been prescribed) in a manner which materially and repeatedly interferes with the performance of his duties hereunder or which has the effect of materially injuring the reputation or business of
the Company; or (ix) engaged in or committed a material breach of this Agreement for a 30-day period after written notification is delivered by the Company that specifically refers to this paragraph and identifies the manner in which the
Company believes the Executive has materially breached this Agreement. For purposes of this paragraph, no act, or failure to act, on the Executive’s part shall be considered willful unless done or omitted to be done, by him not in good faith or
without reasonable belief that his action or omission was in the best interest of the Company. Notwithstanding anything herein to the contrary, for purposes of any termination of employment that occurs within the period that (i) begins with the
first to occur of (1) the initial public announcement of a Specified Change of Control (as defined below), or (2) the 90th day preceding a Specified Change of Control and (ii) ends two years following such Specified Change of Control,
“Cause” shall instead mean only the occurrence of either or both of the following: (A) the Executive’s conviction for committing an act of fraud, embezzlement, 

 

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theft, or other act constituting a felony (other than traffic related offenses or as a result of vicarious liability); or (B) the willful engaging by the Executive in misconduct that is
significantly injurious to the Company. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause without delivery to the Executive of a notice of termination signed by the Company’s Chief Executive
Officer or Chairman of the Board stating that in the good faith opinion of the officer signing such notice, the Executive has engaged in or committed conduct of the nature described in this paragraph, and specifying the particulars thereof in
detail. 
 C. Other than Cause or Death or Disability. The Executive or the Company may terminate the Executive’s
employment at any time, without Cause, by giving the other party to this Agreement at least 30 days advance written notice of such termination, subject to the provisions of this Agreement. 

D. Obligations of the Company Upon Termination. 

1. Death or Disability. If the Executive’s employment is terminated by reason of the Executive’s death or
Disability, this Agreement shall terminate without further obligations to the Executive or his legal representatives under this Agreement, other than for (a) payment of the sum of (i) the Executive’s base salary through the date of
termination of employment to the extent not theretofore paid, plus (ii) any earned vacation pay, to the extent not theretofore paid (the sum of the amounts described in clauses (i) and (ii) shall be hereinafter referred to as the
“Accrued Obligations”), which shall be paid to the Executive or his estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the date of termination of employment; and (b) payment to the Executive or his estate or
beneficiary, as applicable, of (i) any amounts due pursuant to the terms of any applicable welfare benefit plans; (ii) obligations pursuant to the terms of any outstanding stock option agreements; and (iii) obligations under the
Company’s 401(k) Savings Plan. 
 2. Cause. If the Executive’s employment is terminated by the
Company for Cause, this Agreement shall terminate without further obligations to the Executive other than for the timely payment of the Accrued Obligations. If there is a bona fide dispute as to whether Cause existed under the circumstances and it
is subsequently determined that the Company did not have Cause for termination under this Section IV-D-2, then the Company’s decision to terminate shall be deemed to have been made under Section IV-D-3 and the amounts payable thereunder in
accordance with Treasury Regulation Section 1.409A-3(g) shall be the only amounts the Executive may receive for his termination. 

3. Other than Cause or Death or Disability. 

 

	 	(a)	If, during the term of this Agreement, (i) the Company terminates the Executive’s employment for any reason other than Cause or death or Disability, or
(ii) the Executive terminates his employment hereunder with Good Reason (as defined below), the Executive’s employment shall terminate and the Executive shall be entitled to receive the following: 

(x) an amount equal to the Contract Balance (as defined below) in one lump sum, such amount to be payable (subject to Section X-B) within
ten (10) business days following the date the release referred to below in this Section IV-D-3(a) becomes irrevocable under applicable law and in all events not later than the end of the month following the month in which the Executive’s
Separation from Service (as such term is defined in Section IV-D-3(g) below) occurs; and 
  

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 (y) the Accrued Obligations as of the date of termination of employment. 

Any payment made pursuant to this Section IV-D-3(a) shall be reduced by all amounts required to be withheld by applicable law, and with
respect to the payment referred to in the foregoing clause (x), shall only be made in exchange for the execution and delivery to the Company within 21 days of the termination of the Executive’s employment (or such longer period as may be
required under applicable law) of a valid release of all claims the Executive may have against the Company in the form attached hereto as Exhibit A (which may be modified only to the extent necessary to reflect developments in applicable law that
would jeopardize enforceability of such release unless the modifications are not made) and not revoking such release within any revocation period provided under applicable law. Such payment shall constitute the sole and entire obligation of the
Company to provide any compensation or benefits to the Executive upon termination, except for obligations under the Company’s 401(k) Savings Plan, obligations pursuant to the terms of any outstanding stock option agreements, and the
Company’s obligations to make payments required to be made under any other incentive compensation plan. 
  

	 	(b)	The term “Good Reason” means (except as set forth below): 

  

	 	(i)	if the Executive’s annual base salary is reduced, except for a general one-time “across-the-board” salary reduction not exceeding ten percent
(10%) which is imposed simultaneously on all executive officers of the Company; or 

  

	 	(ii)	if, the Company requires the Executive to be based at an office location which will result in an increase of more than thirty (30) miles in the Executive’s
one-way commute, except in connection with a relocation of the Company’s principal executive offices; or 

  

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	 	(iii)	if the Company does not permit the Executive to continue to serve as the President and Chief Operating Officer or another mutually acceptable senior executive position.

 provided, however, that “Good Reason” shall cease to exist for an event on the 60th day following the
earlier of the Company’s written notice of the change to the Executive or the Executive’s becoming aware thereof, unless the Executive has given the Company written notice of his/her objection thereto prior to such date. 

Notwithstanding anything herein to the contrary, for purposes of any termination of employment that occurs within the period that (i) begins with
the first to occur of (1) the initial public announcement of a Specified Change of Control (as defined below), or (2) the 90th day preceding a Specified Change of Control and (ii) ends two years following such Specified Change of
Control, “Good Reason” shall instead mean, without the Executive’s express written consent, the occurrence of any one or more of the following: 
  

	 	(i)	a material reduction in the nature, status or scope of the Executive’s authorities, duties, and/or responsibilities, (when such authorities, duties, and/or
responsibilities are viewed in the aggregate) from their level in effect on the day immediately prior to the Specified Change of Control (provided, however, that neither of (A) a change in the Executive’s reporting relationships, nor
(B) an adjustment in the nature of the Executive’s duties and responsibilities that in either case does not remove from him the authority with respect to the Company’s functional area, employees or products and services that the
Executive had immediately prior to such change or adjustment shall constitute “Good Reason”); 

  

	 	(ii)	a reduction in the Executive’s base salary from its highest level in effect at any point in the three months preceding the Specified Change of Control or a
significant reduction in the Executive’s aggregate incentive opportunities under the Company’s short and/or long-term incentive programs, as such opportunities exist immediately prior to the Specified Change of Control;

  

	 	(iii)	the failure of the Company to maintain the Executive’s relative level of coverage and accruals (as compared to other Company executives) under the Company’s
employee benefit and/or retirement plans, policies, practices, or arrangements in which the Executive participates immediately prior the Specified Change of Control (both in terms of the amount of benefits provided, and amounts accrued) (for this
purpose, the Company may eliminate and/or modify existing programs and coverage levels without the Executive’s consent; provided, however, that the Executive’s level of coverage under all such programs must be at least as great as is
provided to executives who have the same or lesser levels of reporting responsibilities within the Company’s organization); 

  

	 	(iv)	the Executive is informed by the Company that his or her principal place of employment for the Company will be relocated to a location that will result in an increase
of more than thirty (30) miles in the Executive’s one-way commute (as compared to the Executive’s one-way commute prior to the Change in Control); or 

 

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	 	(v)	the Company’s not permitting the Executive to continue to serve as the President and Chief Operating Officer or another mutually acceptable senior executive
position. 

 For purposes of this Agreement, the term a “Specified Change of Control” shall be any Change of Control
that is specifically designated, in writing, by the Board of Directors of the Company or Compensation Committee thereof prior to the consummation of the Change of Control to be a Specified Change of Control. 

 

	 	(c)	The term “Contract Balance” means an amount equal to the annual base salary that the Executive would have earned from the Company had the Executive continued
his employment from the date the Executive’s employment terminated through the Expiration Date (i.e., base salary for two (2) years), using the rate of base salary in effect on the date on which the Executive received or gave written
notice of his termination, plus an amount equal to two (2) times the sum of (i) an amount equal to the average of the annual bonuses with respect to the Company’s two (2) most recently completed fiscal years, if any, determined
to be payable and/or paid to the Executive under the Company’s the Executive Bonus Plan (or comparable bonus plan) prior to such notice of termination, and (ii) an amount determined by the Company from time to time in its sole discretion
to be equal to the annual cost for the Executive of obtaining medical, dental and vision insurance under COBRA, which annual amount is hereby initially estimated to be $20,000. 

 

	 	(d)	A “Change of Control” shall be deemed to have occurred if: 

  

	 	(i)	any “person,” as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “1934 Act”) is, becomes or
enters a contract to become, the “beneficial owner,” as such term is used in Rule 13d-3 promulgated under the 1934 Act, directly or indirectly, of securities representing twenty-five percent (25%) or more of the voting common stock of
the Company; 

  

	 	(ii)	all or substantially all of the business or assets of the Company are disposed of, or a contract is entered to dispose of all of the business of the Company pursuant to
a merger, consolidation other transaction in which (a) the Company is not the surviving parent company or (b) the stockholders of the Company prior to the transaction do not 

 

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	 	(iii)	the Company is materially or completely liquidated. 

Notwithstanding clause (i) above, a “Change of Control” shall not be deemed to have occurred solely because a person shall
be, become or enter into a contract to become the beneficial owner of 25% or more, but less than 40%, of the voting common stock of the Company, if and for so long as such person is bound by, and in compliance with, a contract with the Company
providing that such person may not nominate, vote for, or select more than a minority of the directors of the Company. The exception provided by the preceding sentence shall cease to apply with respect to any person upon expiration, waiver, or
non-compliance with any such contract, by which such person was bound. 
  

	 	(e)	In the event the Executive initiates arbitration pursuant to Section V to enforce his rights to any payments under this Section IV-D-3, or the Company seeks to withhold
or reduce any such payments for any reason, then: 

  

	 	(i)	the burden of proving that the Executive is not entitled to such payments shall be on the Company; 

 

	 	(ii)	the Company shall pay all expenses incurred by the Executive in prosecuting or defending any such proceeding as they are incurred by the Executive in advance of the
final disposition of such dispute, together with any tax liability incurred by the Executive in connection with the receipt of such amounts (any such payment to be made as soon as reasonably practicable following the date such expense was incurred
or tax was remitted, as the case may be, and in all events not later than the end of the Executive’s taxable year following the Executive’s taxable year in which the expense was incurred or tax was remitted, as the case may be, and with
respect to any expenses, the amount of expenses eligible for reimbursement during the Executive’s taxable year may not affect the amount of expenses eligible for reimbursement in any other taxable year); provided, however, that the payment of
such expenses incurred in advance of the final disposition of such proceeding shall be made only upon delivery to the Company of an undertaking, by or on behalf of the Executive, to repay all amounts so advanced to the extent the arbitrator in such
proceeding so determines as provided in Section V; and 

  

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	 	(iii)	all such payments required under this Agreement shall continue to be made on the dates provided herein without any offsets, claims or charges of any kind whatsoever
being asserted by the Company, except in the event a final determination pursuant to the arbitration provisions of Section V has been rendered and such determination provides that the Company is entitled to assert any such offset, claim or charge
against the Executive, in which event any such offset, if applicable, shall be in compliance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). 

 

	 	(f)	No Mitigation or Offset. Notwithstanding anything herein to the contrary, the amount of any payment or benefit provided for in this Section IV-D-3 shall not be reduced,
offset or subject to recovery by the Company or any of its subsidiaries or affiliates by reason of any compensation earned by the Executive as the result of employment by another employer after the Executive’s employment with the Company
terminates for any reason. In addition, the Executive shall be under no obligation to seek other employment or to take any other actions to mitigate the amounts payable under this Section IV-D-3. 

 

	 	(g)	Separation from Service. As used herein, a “Separation from Service” occurs when the Executive dies, retires, or otherwise has a termination of
employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-l(h)(l), without regard to the optional alternative definitions available thereunder.

 4. Exclusive Remedy. The Executive agrees that the payments contemplated by this
Agreement shall constitute the exclusive and sole remedy for any termination of his employment and the Executive covenants not to assert or pursue any other remedies, at law or in equity, with respect to any termination of employment. 

 

	V.	ARBITRATION. 

 Any dispute
or controversy arising under or in connection with this Agreement or the Executive’s employment by the Company shall be settled exclusively by arbitration, conducted before a single neutral arbitrator in accordance with the American Arbitration
Association’s National Rules for Resolution of Employment Disputes as then in effect. Such arbitration shall be conducted in Orange County, California, and the arbitrator shall be a resident of Orange County, California or of a county
contiguous to Orange County, California. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that the Company shall be entitled to seek a restraining order or injunction in any court of
competent jurisdiction to prevent any continuation of any violation of the provisions of Sections VI, VII, or IX of this Agreement and the Executive hereby consents that such restraining order or injunction

  

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may be granted without the necessity of the Company’s posting any bond, and provided, further, that the Executive shall be entitled to seek specific performance of his right to be paid until
the date of employment termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. The arbitrator’s order shall specify, based on the outcome of the arbitration, whether the Executive shall
repay any of the Executive’s expenses theretofore paid by the Company pursuant to Section IV-D-3(e)(ii). The fees and expenses of the arbitrator shall be borne by the Company. 

 

	VI.	NONCOMPETITION: ANTISOLICITATION. 

The Executive promises and agrees that during the term of this Agreement and for a period of two years thereafter, he will not, directly
or indirectly, either for himself or for any other person, entity or business, (i) be engaged in any way with a competing business of the Company or any of its present or future subsidiaries or affiliates, or (ii) induce or attempt to
induce any patient, customer, supplier, licensee, or other party having a business relationship with Apria or any of its subsidiaries or affiliates to cease or reduce the scope of that relationship. For purposes of the above covenant in this Section
VI, the Executive shall “be engaged in any way with a competing business of the Company” if he, directly or indirectly, engages or invests in, owns, manages, operates, finances, controls, or participates in the ownership, management,
operation or control of, is employed by, lends his name or credit to, or renders consulting or other services or advice to, any person, firm, corporation or other business entity which performs or sells services or products which are competitive
with those services and products performed or sold at any time after the date hereof by the Company or any of its subsidiaries or affiliates in any jurisdiction. 
  

	VII.	SOLICITING EMPLOYEES. 

The Executive promises and agrees that, for a period of two years following termination of his employment, he will not, directly or
indirectly, solicit any of the Company employees who earned annually $50,000 or more as a Company employee during the last six months of his or her own employment, or facilitate the hiring of any such employee, to work for any other business,
individual, partnership, firm, corporation, or other entity. 
  

	VIII.	  CONFIDENTIAL INFORMATION. 

A. The Executive, in the performance of his duties on behalf of the Company, shall have access to, receive and be entrusted with
confidential information, including but not limited to systems technology, field operations, reimbursements, development, marketing, organizational, financial, management, administrative, clinical, customer, distribution and sales information, data,
specifications and processes presently owned or at any time in the future developed, by the Company or its agents or consultants, or used presently or at any time in the future in the course of its business that is not otherwise part of the public
domain (collectively, the “Confidential Material”). All such Confidential Material is considered secret and will be available to the Executive in confidence. Except in the performance of duties on behalf of the Company, the Executive shall
not, directly or indirectly for any reason whatsoever, disclose or use any such Confidential Material, unless such Confidential Material ceases (through no fault of the Executive’s) to be confidential because it has become part of the public
domain. All records, 
  

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files, drawings, documents, notes, disks, diskettes, tapes, magnetic media, photographs, equipment and other tangible items, wherever located, relating in any way to the Confidential Material or
otherwise to the Company’s business, which the Executive prepares, uses or encounters during the course of his employment, shall be and remain the Company’s sole and exclusive property and shall be included in the Confidential Material.
Upon termination of this Agreement by any means, or whenever requested by the Company, the Executive shall promptly deliver to the Company any and all of the Confidential Material, not previously delivered to the Company, that may be or at any time
has been in the Executive’s possession or under the Executive’s control. 
 B. The Executive hereby acknowledges that
the sale or unauthorized use or disclosure of any of the Company’s Confidential Material by any means whatsoever and at any time before, during or after the Executive’s employment with the Company shall constitute unfair competition. The
Executive agrees that he shall not engage in unfair competition either during the time employed by the Company or any time thereafter. 

C. The Executive promises and agrees that for a period of two years following termination of his employment, he will not, other than as
required by law or by order of a court or other competent authority, make or publish, or cause any other person to make or publish, any statement that is disparaging or that reflects negatively upon the Company, or that is or reasonably would be
expected to be damaging to the reputation of the Company. 
  

	IX.	EXCISE TAX. 

 A. In the
event that any amount or benefit that may be paid or otherwise provided to or in respect of the Executive by or on behalf of the Company or any affiliate, whether pursuant to this Agreement or otherwise (collectively, “Covered Payments”),
is or may become subject to the tax imposed under Section 4999 of the Code (or any successor provision or any comparable provision of state, local or foreign law) (“Excise Tax”), the Company will pay to the Executive a
“Reimbursement Amount” equal to the total of: (A) any Excise Tax on the Covered Payments, plus (B) any Federal, state, and local income taxes, employment and excise taxes (including the Excise Tax) on the Reimbursement Amount,
plus (C) the product of any deductions disallowed for Federal, state or local income tax purposes because of the inclusion of the Reimbursement Amount in the Executive’s income multiplied by the Executive’s combined Federal, state,
and local income tax rate for the calendar year in which the Reimbursement Amount is includible in the Executive’s taxable income, plus (D) any interest, penalties or additions to tax imposed under applicable law in connection with the
Excise Tax or the Reimbursement Amount, plus (E) any reasonable out-of-pocket costs incurred by the Executive in connection with any of the foregoing. Any payment of the Reimbursement Amount pursuant to this Section IX-A shall be made promptly
after the determination is made pursuant to Section IX-D that such amount is payable to the Executive, and in all cases not later than the end of the Executive’s taxable year next following the year in which the Executive remits the related
taxes; provided that, in the case of any reimbursement of expenses incurred due to a tax audit or litigation addressing the existence or amount of the tax liability, the payment shall be made promptly after the Executive incurs the expenses and in
all cases not later than the end of the Executive’s taxable year following the Executive’s taxable year in which the related taxes are remitted to the taxing authority, or where as a result of such audit or litigation, no taxes are
remitted, the audit is 
  

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completed or there is a final and nonappealable settlement or other resolution of the litigation. In addition, with respect to the reimbursement of any expenses pursuant to this Section IX-A
which are not incurred due to a tax audit or litigation addressing the existence or amount of tax liability, such expenses shall be paid to the Executive promptly after the Executive incurs the expenses and in all cases not later than the end of the
Executive’s taxable year following the taxable year in which the Executive incurs such expenses, and the amount of expenses eligible for reimbursement during the Executive’s taxable year may not affect the amount of expenses eligible for
reimbursement in any other taxable year. For purposes of this Section IX-A, the Executive will be deemed to pay (1) Federal income taxes at the highest applicable marginal rate of Federal income taxation applicable to individuals for the
calendar year in which the Reimbursement Amount is includible in the Executive’s taxable income and (2) any applicable state and local income taxes at the highest applicable marginal rate of taxation applicable to individuals for the
calendar year in which such Reimbursement Amount is includible in the Executive’s taxable income, net of the maximum reduction in Federal income taxes which could be obtained from the deduction of such state or local taxes if paid in such year
(determined without regard to limitations on deductions based upon the amount of the Executive’s adjusted gross income). Except to the extent provided in Section IX-C below, this provision is intended to put the Executive in the same position
as the Executive would have been had no Excise Tax been imposed upon or incurred as a result of any Payment. 
 B. The payment
of a Reimbursement Amount under this Section IX shall not be conditioned upon the Executive’s termination of employment. 

C. Notwithstanding the foregoing provisions of this Section IX-A, if the Company determines that, absent this sentence, the Executive is
entitled to a Reimbursement Amount, but that the portion of the Covered Payments that would be treated as “parachute payments” under Code Section 280G (“Covered Parachute Payments”) does not exceed 103% of the greatest
amount of Covered Parachute Payments that could be paid to the Executive such that the receipt of such Covered Parachute Payments would not give rise to any Excise Tax (the “Safe Harbor Amount”), then no Reimbursement Amount shall be paid
to the Executive (unless for any reason the Executive is determined to be subject to the Excise Tax after application of the balance of this sentence, in which case the full Reimbursement Amount shall be paid), and the Covered Parachute Payments
payable under this Agreement shall be reduced so that the Covered Parachute Payments, in the aggregate, are reduced to the Safe Harbor Amount. For purposes of reducing the Covered Parachute Payments to the Safe Harbor Amount, only amounts payable
under this Agreement shall be reduced. If the reduction of the amounts payable under this Agreement would not result in a reduction of the Covered Parachute Payments to the Safe Harbor Amount, no amounts payable under this Agreement or otherwise
shall be reduced pursuant to this Section IX-C. The Company shall notify the Executive of any intent to reduce the amount of any Covered Payments in accordance with this Section IX-C (which notice, if practicable, shall be given prior to the
occurrence of an event that would give rise to a Covered Parachute Payment). To the extent necessary to reduce the Covered Parachute Payments, the amounts payable or benefits to be provided to the Executive shall be reduced such that the economic
loss to the Executive as a result of such reduction is minimized. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where two economically equivalent amounts
are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero. 
  

 12 

 D. The determination of whether an event described in Code Section 280G(b)(2)(A)(i) has
occurred, the amount of any Reimbursement Amount and/or the amounts described in Section IX-C above shall be made initially by an accounting firm selected by the Compensation Committee of the Board of Directors (as constituted prior to the
occurrence of any Change of Control), or, if no such firm is selected, by the independent compensation consulting firm retained by the Compensation Committee prior to any Change of Control to provide consulting advice to the Compensation Committee;
provided, however, that nothing herein shall limit the Executive’s right to payment of the Reimbursement Amount in the event it is determined that any of such initial determinations was incorrect. 

E. The Executive shall promptly notify the Company in writing of any claim by any taxing authority that, if successful, would require the
payment by the Company of a Reimbursement Amount; provided, however, that failure by the Executive to give such notice promptly shall not result in a waiver or forfeiture of any of the Executive’s rights under this Section IX except to the
extent of actual damages suffered by the Company as a result of such failure. If the Company notifies the Executive in writing within 15 days after receiving such notice that it desires to contest such claim (and demonstrates to the reasonable
satisfaction of the Executive its ability to pay any resulting Reimbursement Amount), the Executive shall: 
 1.
give the Company any information reasonably requested by the Company relating to such claim; 
 2. take such
action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company
that is reasonably acceptable to the Executive; 
 3. cooperate with the Company in good faith in order
effectively to contest such claim; and 
 4. permit the Company to participate in any proceedings relating to
such claim; 
 provided, however, that the Company’s actions do not unreasonably interfere with or prejudice the Executive’s disputes
with the taxing authority as to other issues; and provided, further, that the Company shall bear and pay on an after-tax and as-incurred basis, all attorneys fees, costs and expenses (including additional interest, penalties and additions to tax)
incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax and as-incurred basis, for all resulting taxes (including, without limitation, income and excise taxes), interest, penalties and additions
to tax. 
  

	X.	SECTION 409A. 

 A. It is
intended that any amounts payable under this Agreement and the Company’s and the Executive’s exercise of authority or discretion hereunder shall comply with Section 409A of the Code (including the Treasury regulations and other
published guidance relating thereto) so as not to subject the Executive to payment of any interest or additional tax imposed under Section 409A. To the extent that any amount payable under this Agreement would trigger the additional tax imposed
by Section 409A, the Agreement shall be construed and interpreted in a manner to avoid such additional tax yet preserve (to the nearest extent reasonably possible) the intended benefit payable to the Executive. 

 

 13 

 B. Notwithstanding any provision of this Agreement to the contrary, if the Executive is a
“specified employee” within the meaning of Treasury Regulation Section 1.409A-l(i) as of the date of the Executive’s Separation from Service, and if the deferral of the commencement of any payments or benefits otherwise payable
hereunder for a period of six (6) months following the Executive’s Separation from Service is necessary pursuant to Section 409A of the Code, commencement of any such payments or benefits shall be delayed as required by
Section 409A of the Code. Any amounts otherwise payable to the Executive upon or in the six (6) month period following the Executive’s Separation from Service that are not so paid by reason of this Section X-B shall be paid as soon as
practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Executive’s Separation from Service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after
the date of the Executive’s death), and any such payments shall be increased by an amount equal to interest on such payments for the period commencing with the date such payment would have otherwise been made but for this Section X-B (the
“Original Payment Date”) and ending on the date such payment is actually made, at an interest rate equal to the prime rate in effect as of the Original Payment Date plus one point (for this purpose, the prime rate will be based on the rate
published from time to time in The Wall Street Journal). The provisions of this Section X-B shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code.

 C. Except as otherwise explicitly provided herein, any reimbursements or in-kind benefits provided hereunder shall be made or
provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the period of time specified in this Agreement (or, if no
such period is specified, the Executive’s lifetime), (ii) the amount of expenses eligible for reimbursement, or in kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits
to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to
reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit. In addition, any tax gross-up payments provided for herein shall be paid as soon as practicable, but in no event later than the end of the
Executive’s taxable year following the Executive’s taxable year in which he remits the related taxes. Notwithstanding any other provision contained herein, any offset pursuant to the terms this Agreement of amounts payable to the Executive
shall be in accordance with Section 409A of the Code. 
  

	XI.	SUCCESSORS. 

 A. This
Agreement is personal to the Executive and shall not, without prior written consent of the Company, be assignable by the Executive. 
  

 14 

 B. This Agreement shall inure to the benefit of and be binding upon the Company, its
subsidiaries and its successors and assigns and any such subsidiary, successor or assignee shall be deemed substituted for the Company under the terms of this Agreement for all purposes. As used herein, “successor” and “assignee”
shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires the stock of the Company or to which the Company assigns this Agreement by operation of
law or otherwise. 
  

	XII.	WAIVER. 

 No waiver of any
breach of any term or provision of this Agreement shall be construed to be, nor shall be, a waiver of any other breach of this Agreement. No waiver shall be binding unless in writing and signed by the party waiving the breach. 

 

	XIII.	MODIFICATION. 

 This
Agreement may not be amended or modified other than by a written agreement executed by the Executive and the Company’s Chief Executive Officer or Chairman. 
  

	XIV.	SAVINGS CLAUSE. 

 The
provisions of this Agreement are severable and in the event that a court of competent jurisdiction determines that any provision of this Agreement is in violation of any law or public policy, in whole or in part, only the portions of this Agreement
that violate such law or public policy shall be stricken. All portions of this Agreement that do not violate any statute or public policy shall not be affected thereby and shall continue in full force and effect. Further, any court order striking
any portion of this Agreement shall modify the stricken terms as narrowly as possible to give as much effect as possible to the intentions of the parties under this Agreement. 

 

	XV.	COMPLETE AGREEMENT. 

 This
Agreement (including the attached exhibit) constitutes and contains the entire agreement and final understanding concerning the Executive’s employment with the Company and the other subject matters addressed herein between the parties. It is
intended by the parties as a complete and exclusive statement of the terms of their agreement. It supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the subject matter hereof
(including, without limitation, the Prior Employment Agreement). Any representation, promise or agreement not specifically included in this Agreement shall not be binding upon or enforceable against either party. This is a fully integrated
agreement. Except as provided herein, the Executive’s the Executive Severance Agreement with the Company, dated June 27, 2001, is no longer in effect. Notwithstanding the foregoing, the Noncompetition and Nonsolicitation Agreement dated as
of the 7th day of March, 2007 between the Company and the Executive shall not be superseded by this Agreement and shall remain in full force and effect. 
  

	XVI.	GOVERNING LAW. 

 This
Agreement shall be deemed to have been executed and delivered within the State of California and the rights and obligations of the parties hereunder shall be construed and enforced in accordance with, and governed by, the laws of the State of
California without regard to principles of conflicts of laws. 
  

 15 

	XVII.	  CONSTRUCTION. 

In any construction to be made of this Agreement, the same shall not be construed against any party on the basis that the party was the
drafter. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. 
  

	XVIII.	  COMMUNICATIONS. 

All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if
delivered by hand or by courier, or if mailed by registered or certified mail, postage prepaid, addressed to the Executive at 5 Flax Court, Coto de Caza, CA 92679 or addressed to the Company at 26220 Enterprise Court, Lake Forest, California 92630,
Attention: Chief Executive Officer, with a copy to the attention of the Senior Vice President, Human Resources. Either party may change the address at which notices shall be given by written notice given in the above manner. 

 

	XIX.	EXECUTION. 

 This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Xerographic copies of such signed counterparts may be used in lieu of the
originals for any purpose. 
  

	XX.	LEGAL COUNSEL. 

 The
Executive and the Company recognize that this is a legally binding contract and acknowledge and agree that they have each had the opportunity to consult with legal counsel of their choice. 

 

 16 

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

									
	APRIA HEALTHCARE GROUP INC.	 		 	THE EXECUTIVE
					
	By	 	/s/ Norman C. Payson	 		 	By	 	/s/ Lawrence A. Mastrovich
		 	 Norman C. Payson, M.D.
 Chief
Executive Officer
	 		 		 	Lawrence A. Mastrovich

  

 17 

 EXHIBIT A  

GENERAL RELEASE 

THIS GENERAL RELEASE (this “Release”) is made as of the          day of
                    , 20    , by and between Lawrence A. Mastrovich, an individual (“Executive”), and
Apria Healthcare Group Inc., a Delaware corporation (“Apria”). In consideration of the payments and benefits to be provided to Executive pursuant to that certain Amended and Restated Employment Agreement, effective as of October 24,
2008, to which Executive and Apria are parties (the “Employment Agreement”), the sufficiency of which is acknowledged hereby, Executive and Apria agree as follows: 

1. In consideration of Executive’s general release of claims, his agreements in paragraphs 7, 8 and 9 of the Severance Agreement,
and his other promises set forth herein, Apria shall pay to Executive the following amounts: 
 a. a total of
$                                     in severance
compensation, subject to standard withholding for federal and state taxes, which shall be payable in accordance with Apria’s regular payroll procedures in a lump sum on
                            ; and 

b. all salary amounts earned but not yet paid, subject to standard withholding for federal and state taxes, payable on or
as soon as practicable after
                                         
       . 
 2. On or before
                                    , Executive shall return
to Apria his company-provided laptop computer, cell phone, BlackBerry, credit cards, electronic fuel card, electronic building access cards, toll road FasTrak transmitter and all other property of Apria. He shall not take or copy in any form or
manner any financial information, lists of customers, prices, or any other confidential and proprietary materials or information of Apria. 

3. Neither this Release nor anything in this Release shall be construed to be or shall be admissible in any proceeding as evidence of an
admission by Apria or Executive of any violation of Apria’s policies or procedures, or state or federal laws or regulations. This Release may be introduced, however, in any proceeding to enforce the Release. Such introduction shall be pursuant
to an order protecting its confidentiality. 
 4. Except for (i) those obligations created by or arising out of this
Release, (ii) any rights Executive may have under stock option agreements with Apria and any retirement, 401(k), or similar benefit plans of Apria, and (iii) the continuing right to indemnification as provided by applicable law or in
Apria’s bylaws and articles of incorporation in connection with acts, suits or proceedings by reason of the fact that he was an officer or employee of Apria where the basis of the claims against him consists of acts or omissions taken or made
in such capacity, or any indemnification rights of Executive otherwise provided pursuant to the Agreement and Plan of Merger among Apria, Sky Acquisition LLC, and Sky Merger Sub Corporation, dated as of June 18, 2008, Executive on behalf of
himself, his descendants, dependents, heirs, executors, administrators, assigns, and successors, and each of them, hereby covenants not to sue and fully releases and discharges Apria, and its predecessors, subsidiaries and affiliates, past and
present, 
  

 A-1 

 
and each of them, as well as its and their trustees, directors, officers, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and
each of them, hereinafter together and collectively (including Apria) referred to as the “Apria Releasees,” with respect to and from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits,
causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or
not concealed or hidden, which he now owns or holds or he has at any time heretofore owned or held as against the Apria Releasees, arising out of or in any way connected with his employment relationship with any Apria Releasee, or his voluntary
resignation from employment with the Apria Releasees or any other transactions, occurrences, actions, omissions, claims, losses, damages or injuries whatsoever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on
the part of any Apria Releasee committed or omitted prior to the date of this Release, including, without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act,
the Americans with Disabilities Act, the Family and Medical Leave Act of 1993, the Fair Employment Practices Act, the Equal Pay Laws, the Workers’ Compensation Act, the Family and Medical Leave Act, the Civil Rights Act of 1991, Sections 1981
through 1988 of Title 42 of the United States Code, the Employee Retirement Income Security Act of 1974, the California Fair Employment and Housing Act, the California Labor Code, the state and federal Worker Adjustment and Retraining Notification
Act, the California Business and Professions Code, or any common law or statutory claim for fraud, wrongful termination, violation of public policy or defamation, or any claim for compensation, severance pay, bonus, sick leave, holiday pay, vacation
pay, life insurance, health or medical insurance or any other fringe benefit, workers’ compensation or disability. 

Except for those obligations created by or arising out of this Release, and except as provided below, Apria on behalf of itself and the
Apria Releasees (to the extent the matter in question arises on the basis of their relationship to Apria) hereby acknowledges full and complete satisfaction of and releases and discharges, and covenants not to sue, Executive from and with respect to
any and all claims, agreements, obligations, losses, damages, injuries, demands and causes of action, known or unknown, suspected or unsuspected, whether or not concealed or hidden, arising out of or in any way connected with Executive’s
employment relationship with any Apria Releasee or his voluntary resignation from employment with the Apria Releasees, or any other transactions, occurrences, actions, omissions, claims, losses, damages or injuries whatsoever, known or unknown,
suspected or unsuspected, which Apria now owns or holds or has at any time heretofore owned or held as against Executive. 
 5.
It is the intention of Apria and Executive in executing this Release that the same shall be effective as a bar to each and every claim, demand and cause of action hereinabove specified. In furtherance of this intention, Apria and Executive hereby
expressly waive any and all rights and benefits conferred upon them by the provisions of SECTION 1542 OF THE CALIFORNIA CIVIL CODE and expressly consent that this Release shall be given full force and effect according to each and all of its express
terms and provisions, including those related to unknown and unsuspected claims, demands and causes of action, if any, as well as those relating to any other claims, demands and causes of action hereinabove specified. SECTION 1542 provides:

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

 A-2 

 Apria and Executive, and each of them, acknowledge that either may hereafter discover claims
or facts in addition to or different from those which either or both of them now knows or believes to exist with respect to the subject matter of this Release and which, if known or suspected at the time of executing this Release, may have
materially affected this settlement. Nevertheless, Apria and Executive each hereby waive any right, claim or cause of action that might arise as a result of such different or additional claims or facts. Apria and Executive each acknowledge that it
or he understands the significance and consequence of such release and such specific waiver of SECTION 1542. 
 6. The terms and
conditions of this Release shall remain confidential as between the parties and professional advisers to the parties and neither of them shall disclose them to any other person, except as provided herein or as required by the rules and regulations
of the Securities and Exchange Commission (“SEC”) or as otherwise may be required by law or court order. Without limiting the generality of the foregoing, neither Apria nor Executive will respond to or in any way participate in or
contribute to any public discussion concerning, or in any way relating to, the execution of this Release or the events which led to its execution. Except as provided above with respect to SEC rules and regulations or as otherwise may be required by
law or court order, if inquiry is made of Apria concerning any of the claims released by this Release or relating to Executive’s employment with Apria, Apria shall provide to third parties Executive’s dates of employment with Apria and its
predecessors and his job titles during such employment, in accordance with the normal practices of Apria’s human resources department. 

7. Executive expressly acknowledges and agrees that, by entering into this Release, he is waiving any and all rights or claims that may
have arisen under the Age Discrimination in Employment Act of 1967, as amended, which have arisen on or before the date of execution of this Release. Executive further expressly acknowledges that: 

a. He is hereby advised in writing by this Release to consult with an attorney before signing this Release. 

b. He was given a copy of this Release on
                            , and informed that he had 21 days within which to consider this Release,
although he is free to execute this Release anytime within that 21-day period as indicated in Section 16 below. 

c. He was informed that he has seven days following the date of his execution of this Release in which to revoke the
Release, which revocation may be effected by means of a written notice sent to the General Counsel of Apria at Apria’s corporate headquarters, provided that in all events any revocation must be received by Apria during the seven-day revocation
period. 
  

 A-3 

 d. Apria and Executive agree that this Release will not become effective or
enforceable until the seven-day revocation period has expired without the Executive’s having revoked this Release. 
 8.
Apria and Executive each warrant and represent that neither has heretofore assigned or transferred to any person not a party to this Release any released matter or any part or portion thereof and each shall defend, indemnify and hold harmless the
other from and against any claim (including the payment of attorneys’ fees and costs actually incurred whether or not litigation is commenced) based on or in connection with or arising out of any such assignment or transfer made, purported or
claimed. 
 9. Apria and Executive acknowledge that any employment relationship between them (including with any other Apria
Releasee) will terminate on                     , that they have no further employment relationship except as may arise out of this Release
and that Executive waives any right or claim to reinstatement as an employee of any Apria Releasee and will not seek employment in the future with Apria, unless by mutual consent. 

10. This Release shall be incorporated into and made a part of the Employment Agreement as of the date hereof. This Release, together
with the Employment Agreement and the Amended and Restated Noncompetition Agreement entered into by Executive and Apria concurrently with the Employment Agreement, sets forth the entire agreement and understanding between the parties as to the
subject matter hereof and supersedes all prior and contemporaneous oral and written discussions, agreements and understandings of any kind or nature. This Release shall inure to the benefit of and be binding upon the parties hereto and their
respective permitted successors and assigns. This Release does not, however, affect Executive’s rights under any Apria retirement, 401(k), or similar benefit plan. This Release also does not modify the provisions of any of Executive’s
stock options, restricted stock purchase rights or restricted stock units. 
 11. If any provision of this Release or the
application thereof is held invalid, the invalidity shall not affect the other provisions or applications of this Release which can be given effect without the invalid provisions or applications and to this end the provisions of this Release are
declared to be severable. 
 12. This Release has been executed and delivered by Executive within the State of California, and
the rights and obligations of the parties hereunder shall be construed and enforced in accordance with, and governed by, the laws of the State of California without regard to principles of conflict of laws. 

13. This Release may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original.
Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose. 
 14. Any dispute or
controversy between Executive on the one hand, and Apria (or any other Apria Releasee), on the other hand, in any way arising out of, related to, or connected with this Release or the subject matter hereof, or otherwise in any way arising out of,
related to, or connected with Executive’s employment with any Apria Releasee or the termination of 
  

 A-4 

 
Executive’s employment with any Apria Releasee, shall be submitted for resolution by arbitration in accordance with the provisions of the Employment Agreement. APRIA AND EXECUTIVE
ACKNOWLEDGE, UNDERSTAND AND AGREE THAT IN THE EVENT OF A DISPUTE UNDER THIS RELEASE, EACH PARTY HAS WAIVED ANY RIGHT TO A JURY TRIAL AND A JUDICIAL RESOLUTION OF THE DISPUTE. 

15. No waiver of any breach of any term or provision of this Release shall be construed to be, or shall be, a waiver of any other breach
of this Release. No waiver shall be binding unless in writing and signed by the party waiving the breach. 
 16. In entering
this Release, the parties represent that they have relied upon the advice of their attorneys, who are attorneys of their own choice, and that they have read the Release and have had the opportunity to have the Release explained to them by their
attorneys, and that those terms are fully understood and voluntarily accepted by them. 
 17. All parties agree to cooperate
fully and to execute any and all supplementary documents and to take all additional actions that may be necessary or appropriate to give full force to the terms and intent of this Release and which are not inconsistent with its terms. 

18. Executive hereby declares as follows: 

I, Lawrence A. Mastrovich, hereby acknowledge that I was given 21 days to consider the foregoing Release and voluntarily chose to sign
the Release prior to the expiration of the 21-day period. 
 I have read the foregoing Release and I accept and agree to the
provisions it contains and hereby execute it voluntarily with full understanding of its consequences. 
 I declare under penalty
of perjury under the laws of the State of California that the foregoing is true and correct. 
 [signature page follows]

  

 A-5 

 IN WITNESS WHEREOF, the undersigned have executed and delivered this Release this
         day of                         ,
20        . 

	
	
	  
	Executive

  

			
	APRIA HEALTHCARE GROUP INC.
		
	By	 	 
		 	[Name]
		 	[Title]

  

 A-6Amendment to Employment Agreement (Lawrence A. Mastrovich)

 Exhibit 10.7 

AMENDMENT TO THE EMPLOYMENT AGREEMENT 

THIS AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”) is entered into as of April 3, 2009 (the “Effective
Date”) by and between Apria Healthcare Group, Inc., a Delaware corporation (the “Company”), and Lawrence A. Mastrovich (the “Executive”). 

WHEREAS, Executive is currently employed as President and Chief Operating Officer of the Company pursuant to an amended and restated
employment agreement dated October 24, 2008, between Executive and the Company (the “Employment Agreement”); and 

WHEREAS, the consummation on October 28, 2008 (the “Closing Date”) of the transactions contemplated in the Agreement and
Plan of Merger (the “Merger Agreement”), dated as of June 18, 2008, by and among Apria, Sky Acquisition LLC, a Delaware limited liability company, and Sky Merger Sub Corporation, a Delaware corporation, constituted a “Specified
Change in Control” as such term is defined in the Employment Agreement; 
 WHEREAS, in connection with the foregoing, the
Company wishes to formally amend the terms of the Employment Agreement to reflect those changes to the Employment Agreement set forth herein, to be effective as of the Effective Date; and 

WHEREAS, the Company and Executive agree to enter into such amendment on the terms set forth herein. 

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, and intending to be legally bound, the
parties, subject to the terms and conditions set forth herein, agree, effective as of immediately prior to the Effective Time (as such term is defined in the Merger Agreement), as follows: 

Capitalized terms not defined herein shall have the meaning set forth in the Employment Agreement. 

AMENDMENTS 
 1.
Section IX-A of the Employment Agreement shall be amended by adding “Change of Control Which Occurred Prior to April 3, 2009.” after heading “A”. 

2. The first sentence of Section IX-A of the Employment Agreement shall be amended by adding “, as a result of a Change of Control
that was consummated on or prior to April 3, 2009,” after the words “is or may”. 
 3. Section IX-A of the
Employment Agreement shall be amended by deleting the last sentence of that section and replacing it with the following: “Except to the extent provided in Section IX-C below, this provision is intended to put Executive in the same position as
Executive would have been had no Excise Tax been imposed upon or incurred as a result of any Covered Payment that is paid or otherwise provided to or in respect of the Executive in connection with a Change of Control that was consummated on or prior
to April 3, 2009.” 
 4. Section IX of the Employment Agreement shall be amended to add the following new section:

  

	 	“F.	Change of Control Which Occurs After April 3, 2009. 

 1. Notwithstanding anything herein to the contrary, in the event that a Change of Control
that could reasonably be expected to result in the payment of a Reimbursement Amount pursuant to this Section IX (but for the fact that such event occurs on or after April 3, 2009) (such Change of Control, a “Future Change of
Control”), (i) the Company shall have no obligation to pay any Reimbursement Amount and (ii) if applicable at the time of such Future Change of Control, the Company shall use best efforts to obtain shareholder approval for any of the
payments or benefits received or to be received by Executive, whether pursuant to this Agreement or otherwise, that are potentially subject to Excise Tax, so that upon such shareholder approval, the payments and/or benefits shall not be subject to
Excise Tax; provided that failure to obtain such shareholder approval shall not constitute a breach of this Agreement or result in any additional payments to be made to Executive. 

2. If such shareholder approval is not obtained or is not applicable in respect of a Future Change of Control, and in the event it shall
be determined in connection with a Future Change of Control that any amount or benefit that may be paid or otherwise provided to or in respect of the Executive by or on behalf of the Company or any affiliate, whether pursuant to this Agreement or
otherwise (collectively, the “Future Covered Payments”), is or may become subject to Excise Tax, then Executive shall forfeit and not be entitled to receive any such Future Covered Payments to the extent in excess of the maximum amount
which could be provided to Executive without resulting in the imposition of any Excise Tax or the loss of any deduction under Section 280G of the Code (the “Capped Amount”); provided that the foregoing forfeiture and cutback shall not
apply if the amount of the Future Covered Payments remaining after the imposition of any Excise Tax exceeds the Capped Amount. 

3. All determinations required to be made under this Section IX-F, including whether an Excise Tax would be imposed and the amount of the
Capped Amount, shall be made by a nationally recognized certified public accounting firm as may be designated by the Company (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and Executive
within ten business days after the receipt of notice from the Company or Executive that there has been a Payment, or such earlier time as is requested by the Company. If the Accounting Firm determines that no Excise Tax is payable by Executive, it
shall so indicate to Executive in writing. Any determination by the Accounting Firm shall be binding upon the Company and Executive. Te Company and Executive shall each provide the Accounting Firm access to and copies of any books, records and
documents in the possession of the Company or Executive, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the written determination
contemplated by Section IX-F hereof. The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by Section IX-F hereof shall be borne solely by the Company.” 

GENERAL 
 1. The
Employment Agreement, as amended by this Amendment, shall continue in full force and effect in accordance with the terms thereof. 

2. The other provisions and cross-references of the Employment Agreement shall be renumbered accordingly as a consequence of the
additions and deletions described herein, to the extent applicable. 
  

 2 

 3. This Amendment may be executed in any number of counterparts, and each such counterpart
shall be deemed to be an original instrument, but all such counterparts together shall constitute one and the same instrument. 

4. This Amendment shall be governed and construed and the legal relationships of the parties determined in accordance with the laws of
the State of California, without regard to conflicts of laws principles thereof that would direct the application of the laws of any other jurisdiction. Section XVI of the Employment Agreement is hereby incorporated by reference herein. 

[Signatures on next page.] 
  

 3 

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

			
	 APRIA HEALTHCARE GROUP, INC.,

a Delaware corporation

		
	By:	 	/s/ Norman C. Payson
		 	Name: Norman C. Payson
		 	Title: Chief Executive Officer

  

	
	EXECUTIVE
	
	/s/ Lawrence A. Mastrovich
	LAWRENCE A. MASTROVICH

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