Document:

Amended and Restated Noncompetition and Nonsolicitation Agreement (Greenleaf)

 Exhibit 10.12 

AMENDED AND RESTATED NONCOMPETITION AND NONSOLICITATION 

AGREEMENT 

This Amended and Restated Noncompetition and Nonsolicitation Agreement (this “Agreement”) is entered into on the 24th day of
October, 2008 (the “Effective Date”) by and between Daniel E. Greenleaf (the “Executive”) and Apria Healthcare Group Inc. (the “Company”). 

INTRODUCTORY PROVISIONS 

The following provisions are true and correct and constitute the basis for this Agreement: 

 

	A.	The Executive has entered into one or more agreements (herein referred to as “Incentive Compensation Agreements”) with the Company pursuant to which the
Executive, subject to continued employment through the dates therein described and certain other restrictions, received the option to purchase or otherwise receive shares of common stock issued by the Company as well as certain other benefits and
the Executive is now being or may hereafter be offered the opportunity, at the Company’s discretion, to participate in one or incentive compensation or similar plans pursuant to which the Executive will be eligible to earn additional
compensation beyond the Executive’s base salary (hereinafter referred to as “Incentive Compensation Plans”). 

  

	B.	The Executive and the Company are executing this document to express their agreement concerning certain covenants pertaining to the protection of the Company’s
confidential information and trade secrets and its business whereby the Executive agrees to satisfy certain obligations to perform and refrain from performing certain acts during the Executive’s employment with the Company and following the
termination of the Executive’s employment with the Company. 

  

	C.	The Executive and the Company acknowledge and agree that the rights granted to the Executive under the Incentive Compensation Plans and Incentive Compensation
Agreements, as well as the Executive’s continued at-will employment with the Company and access to the Company’s confidential information and trade secrets, Executive’s continued receipt of salary and other remuneration and benefits
associated with that at-will employment, and other good and valuable consideration, constitute adequate and sufficient consideration for the Executive’s entering into this Agreement. 

 

	D.	The Executive and the Company have previously entered into a Noncompetition Agreement dated as of June 18, 2008 (the “Prior Noncompetition Agreement”) and are
entering into an Amended and Restated Employment Agreement of even date herewith (the “Employment Agreement”). This Agreement provides for certain payments to the Executive upon certain terminations of employment in connection with Change
in Control (as defined below) from and after the Effective Date and supersedes and negates any and all previous agreements with respect to such payments, including, without limitation, the Prior Noncompetition Agreement; provided, however, that this
sentence shall not apply to any severance benefits to which the Executive may become entitled under the Employment Agreement. 

 NOW, THEREFORE, for the purposes and considerations expressed above, the parties
hereto, intending to be legally bound, agree as follows: 
  

	 	1.	Confidential Information. 

(a) The Executive acknowledges that, in the performance of the Executive’s duties on behalf of the Company, the Executive has had and
will have access to, has received and will receive, and has been entrusted and will be entrusted with confidential information and trade secrets including but not limited to systems technology, field operations, reimbursement, development,
marketing, organizational, financial, management, administrative, clinical, customer, distribution and sales information, data, specifications and processes owned by the Company or any of its affiliates (collectively, the “Company Group”),
or used presently or at any time in the future in the course of the business of the Company Group that is not otherwise part of the public domain (collectively, the “Confidential Material”). All such Confidential Material is considered
secret and was and will be made available to the Executive in confidence. 
 (b) The Executive hereby agrees that the Executive
shall not at any time (whether during or after the Executive’s employment with the Company), directly or indirectly, other than in the course of the Executive’s duties to the Company, disclose or make available to any person, firm,
corporation, association or other entity for any reason or purpose whatsoever, any Confidential Material; provided, however, that this Section 1(b) shall not apply when (i) disclosure is required by law or by any court, arbitrator, mediator or
administrative or legislative body (including any committee thereof) with apparent jurisdiction to order the Executive to disclose or make available such information (provided, however, that the Executive shall promptly notify the Company in writing
upon receiving a request for such information), or (ii) with respect to any other litigation, arbitration or mediation involving this Agreement, including but not limited to enforcement of this Agreement. The Executive agrees that, upon termination
of the Executive’s employment with the Company, all Confidential Material in the Executive’s possession that is in written, digital or other tangible form (together with all copies or duplicates thereof, including computer files) shall be
returned to the Company and shall not be retained by the Executive or furnished to any third party, in any form except as provided herein; provided, however, that the Executive shall not be obligated to treat as confidential, or return to the
Company copies of any Confidential Material that (x) was publicly known at the time of disclosure to the Executive, (y) becomes publicly known or available thereafter other than by any means in violation of this Agreement or any other duty owed to
the Company by any person or entity, or (z) is lawfully disclosed to the Executive by a third party. 
  

	 	2.	Noncompetition Covenants. 

(a) The Executive acknowledges that the Executive’s employment with a competitor of the Company Group within a reasonable time
following the termination of the Executive’s employment with the Company Group would create a substantial likelihood that the Executive would inevitably disclose or use, to the detriment of the Company Group, Confidential Material, and that it
is essential to the Company Group’s legitimate business interests and also to free and fair competition in the industry within which the Company Group does business, to protect the Company Group’s Confidential Material from disclosure.

  

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 (b) The risk of inevitable disclosure is particularly applicable to any such employment by
the Executive with those competitors of the Company Group that are similar in operation, service, missions and markets to the Company Group (“Principal Competitors”). As of the date of this Agreement, the Principal Competitors are:
Advanced Home Care Inc.; Allied Healthcare International; Almost Family Inc.; Amedisys Inc.; American HomePatient, Inc.; Arcadia Resources Inc.; Chartwell Diversified Services Inc.; Chemed Corp.; Critical Homecare Solutions Holdings Inc; Gentiva
Health Services, Inc.; Landauer Metropolitan, Inc.; LHC Group, Inc.; LifeCare Solutions, Inc.; Lincare Holdings, Inc.; Matria Healthcare Inc.; Medco Health Solutions, Inc.; Pacific Pulmonary Services Corporation; Rotech Healthcare, Inc.; The MED
Group; Van G. Miller & Associates; Wright & Filippis; and the home healthcare and infusion businesses of Air Products & Chemicals, Inc., Praxair, Inc., Walgreen Co. and CVS Corp. and their respective parent, affiliated and subsidiary
companies. 
 (c) In order avoid the disclosure by the Executive of the Company’s trade secrets or other Confidential
Material to those businesses that could most adversely affect the performance of the Company Group and damage its goodwill, the Executive agrees that, during the period of the Executive’s employment by the Company and for a period of one year
following the date on which the Executive’s employment with the Company Group terminates for any reason (the “Post-Termination Period”), the Executive will not engage, directly or indirectly, in business with or work with or for,
whether as an owner, employee, consultant or otherwise, any Principal Competitor; provided, however, that this restriction shall not prevent the Executive from owning less than 1% of any class of publicly-traded securities (or other equity interests
held through a publicly-traded mutual fund or similar investment) of a Principal Competitor following the termination of the Executive’s employment with the Company. The Executive expressly acknowledges and agrees that the foregoing restriction
is reasonable and necessary in order to protect the Confidential Material of the Company Group. The phrase “engage, directly or indirectly” means engaging or having an interest in, directly or indirectly, as owner, partner, participant of
a joint venture, trustee, proprietor, shareholder, member, manager, director, officer, employee, independent contractor, capital investor, lender, consultant, advisor or similar capacity. 

 

	 	3.	Nonsolicitation Covenants. 

(a) During the term of the Executive’s employment with the Company and during the Post-Termination Period, the Executive will not,
directly or indirectly, individually or as a consultant to, or as an employee, officer, stockholder, director or other owner or participant in any business, influence or attempt to influence customers, patients, referral sources, vendors, suppliers,
licensors, lessors, joint venturers, associates, consultants, agents, or partners of the Company Group, either directly or indirectly, to divert their business away from the Company Group, to any individual, partnership, firm, corporation or other
entity then in competition with the business of any entity within the Company Group, and the Executive will not otherwise interfere with, disrupt or attempt to disrupt the business relationships, contractual or otherwise, between the Company, any of
its respective affiliates or subsidiaries, and any customers, suppliers, vendors, lessors, licensors, joint venturers, associates, officers, employees, consultants, managers, partners, members of or investors in any entity within the Company Group.

  

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 (b) During the term of the Executive’s employment with the Company and during the
Post-Termination Period, the Executive will not on behalf of any individual or entity (other than the Company Group) directly or indirectly (i) induce, encourage or otherwise solicit (or assist in soliciting) any person who is an employee,
independent contractor, consultant or business partner of any entity within the Company Group to terminate his, her or its employment relationship, contract, consulting relationship or partnership arrangement with such entity to accept any other
employment or position; or (ii) assist any other entity in hiring any such employee, independent contractor, consultant or business partner. 

4. Cooperation; Nondisparagement. The Executive agrees that, following termination of employment with the Company, the Executive
will cooperate, at no financial cost to the Executive, with any reasonable request the Company may make for information or assistance with respect to any matter involving the Executive. Furthermore, the Executive shall at no time make any libelous
or slanderous remarks or writings about any entity within the Company Group, or any such entity’s officers or directors. 

5. Company Remedies. In the event that the Company, acting in good faith and based on its reasonable belief at the time,
determines that the Executive has engaged in Detrimental Activity, the Company shall have the right to take any or all of the actions set forth in this Section 5 to the fullest extent not prohibited by law; provided, however, that in the case of
Detrimental Activity described in clause (i) of the definition of the term Detrimental Activity as set forth below, the Company shall have the right to take any or all of the actions set forth in Sections 5(a) and 5(b) (but, for purposes of clarity,
shall not have the ability to take any of the actions set forth in Sections 5(c) and 5(d) with respect to such nature of Detrimental Activity). For purposes of this Agreement, “Detrimental Activity” shall mean (i) a breach of any of the
covenants set forth in Sections 1 through 4 above that has resulted in material and demonstrable injury, monetarily or otherwise, to the Company, (ii) that, as a result of fraud or other misconduct by the Executive, the Company is required to
prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under applicable securities laws, or (iii) Executive is found to have engaged in activities which are in violation of
applicable law and such activities have resulted in material and demonstrable injury, monetarily or otherwise, to the Company. (The date of any determination by the Company that the Executive has engaged in Detrimental Activity is referred to herein
as the “Determination Date.”) For these purposes, a determination by the Company that Detrimental Activity has occurred shall occur when either the Company’s Chairman of the Board of Directors or the Company’s Chief Executive
Officer shall have notified the Company’s General Counsel in writing of its belief that the Executive engaged in Detrimental Activity within the meaning of this Agreement. For purposes of this Agreement, material damage to the Company may
include damage to its reputation or standing before current or potential customers, current or potential sources of patient or customer referrals, industry suppliers, current or potential sources of financing or equity capital, or public or
semi-public regulatory bodies such as the United States Department of Health and Human Services or the Joint Commission on Accreditation of Healthcare Organizations, and such damage need not be demonstrable as pecuniary damage. The parties stipulate
that such damage may be shown in any judicial or arbitration by providing copies of media and analytical reports supported by written affidavit or oral testimony as having been published to the general public or a particular group in addition to any
other form of evidence ordinarily allowed in judicial or arbitration proceedings. 
  

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 (a) Termination of Cash Bonuses. The Company shall have the right to terminate
immediately any and all rights the Executive may have with respect to any cash bonuses or other cash incentive opportunities (“Cash Bonuses”) awarded to the Executive under any Incentive Compensation Plan to the extent such Cash Bonuses
have not been paid as of the Determination Date. 
 (b) Termination of Equity Awards. The Company shall have the right to
terminate immediately any or all (i) stock options granted to the Executive that are outstanding and unexercised (whether or not vested) as of the Determination Date, and/or (ii) other equity-based or cash awards granted or issued under any
Incentive Compensation Plan or Incentive Compensation Agreement to the Executive that are outstanding and unpaid (whether or not vested) as of the Determination Date. 

(c) Company Repurchase Option. 

(i) The Company shall have the right to repurchase any shares of the Company’s common stock (“Common
Stock”) acquired by the Executive during the one-year period preceding the Determination Date pursuant to either (A) the exercise of any stock option granted by the Company to the Executive (whether granted on, before or after the date of this
Agreement) or (B) the vesting or payment of any restricted stock, restricted stock unit or other equity-based award granted by the Company under any Incentive Compensation Agreement or Plan to the Executive whether granted on, before or after the
date of this Agreement) (the “Repurchase Right”). The per-share price of any such repurchase of shares by the Company shall be equal to the lesser of (x) the Fair Market Value of the Common Stock at the time the Company gives notice
of its intention to repurchase such shares, or (y) the per-share price paid by the Executive for such shares in connection with such exercise or vesting or payment event. For purposes of this Agreement, “Fair Market Value” shall be
determined in accordance with the Company’s 2003 Performance Incentive Plan as in effect on the Effective Date. For purposes of clarity, the repurchase price for such shares shall be zero if the Executive did not pay any cash amount to acquire
such shares. 
 (ii) The closing of any repurchase of shares following the Company’s exercise of its
Repurchase Right shall be at a date specified by the Corporation in the Detrimental Activity Notice (as defined below), such date to be no later than 30 days after the date of the Detrimental Activity Notice. The purchase price (if any) shall be
paid at the closing in the form of a check against surrender by the Executive of a stock certificate evidencing the repurchased shares with duly endorsed stock powers, free of adverse claims. No adjustments (other than as provided in the applicable
stock incentive plan and/or award agreement) shall be made to the purchase price for fluctuations in the Fair Market Value of the shares after the date of the Detrimental Activity Notice. The Executive shall represent to the Company that the shares
are not subject to any lien, encumbrance, pledge, or other interest of a third party. The Executive may not sell, encumber, pledge or otherwise transfer or alienate any of the shares after the date of the Detrimental Activity Notice. The Company
shall have the right, to the maximum extent permitted by law, to offset against any payment otherwise due from the Executive any amount the Company is required to pay to the Executive in accordance with this Section 5. 

 

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	 	(d)	Company Cash Reimbursement Right. 

(i) In the event that all or a portion of any of the shares of Common Stock referred to in the first sentence of Section
5(c) are not then owned by the Executive without restriction (for this purpose, the shares will be considered “restricted” if they are subject to, without limitation, any lien, encumbrance, pledge or other interest of a third party), the
Company shall have the right to require the Executive to pay to the Company an amount equal to (x) the total number of shares acquired by the Executive on such option exercise, multiplied by (y) the difference between (A) the greater of the Fair
Market Value of the Common Stock on the date of the Detrimental Activity Notice or the per-share consideration received by the Executive in any sale or other transfer or all or a portion of such shares, and (B) the per-share price (if any) paid by
the Executive for such shares in connection with such exercise or vesting or payment event (the “Cash Reimbursement Right”). 

(ii) Any payment required to be made by the Executive to the Company following the Company’s exercise of its Cash
Reimbursement Right shall (a) be paid in the form of a certified or cashier’s check payable to the order of the Company, and (b) be delivered no later than 30 days after the date of the Detrimental Activity Notice to the Company at the address
of its principal executive offices to the attention of the Company’s Chief Executive Officer, such delivery to be made by postage pre-paid registered or certified U.S. Mail. The Company shall have the right, to the maximum extent permitted by
law, to offset against any payment otherwise due to the Executive any amounts the Executive is required to pay to the Company in accordance with this Section 5. 

(e) Exercise of Company’s Rights. The Company’s exercise of any of its rights under the provisions of this Section 5
shall be exercisable by the Company by delivery of a written notice to the Executive (the “Detrimental Activity Notice”), which notice must set forth the general basis of the Company’s finding of Detrimental Activity, be mailed to the
attention of or otherwise actually delivered to the Executive at the Executive’s most recent address reflected in the Company’s payroll records, and be so mailed or delivered during the Exercise Period set forth below. The “Exercise
Period” shall commence on the Determination Date and shall terminate on the date that is sixty days after the Determination Date. The Company shall have the right to exercise any or all rights or remedies provided for in this Agreement at its
sole discretion and the fact that the Company shall fail or defer its rights to exercise such rights or remedies in any given situation shall not preclude the Company from exercising such rights or remedies in any other situation even if such
situation is identical or similar to the situation in which the Company declined to exercise such rights or remedies. All remedies provided herein are cumulative and are in addition to and not in limitation of any other remedies available at law, in
equity or by contract. The pursuit of any one remedy shall not be deemed to limit the right to pursue any other remedy, except to the extent that such remedy has been fully realized in am manner that excludes the possibility of pursuing the other
remedy. 
  

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 6. Agreement to Compensate the Executive. 

(a) Payment. The parties have previously entered into an Executive Employment Agreement on June 18, 2008 and effective as of April
7, 2008 (the “Employment Agreement”). In the event that within the period that (i) begins with the first to occur of (1) the initial public announcement of a Change of Control (as defined in the Employment Agreement), or (2) the 90th day
preceding a Change of Control and (ii) ends two years following such Change of Control, the Executive’s employment is terminated by the Company for any reason other than death, disability or Cause (as defined in the Employment Agreement), or in
the event that the Executive terminates his employment with the Company with Good Reason (as defined in the Employment Agreement) during said period, the Executive shall be entitled to receive payments that equal $750,000 in the aggregate, it being
understood that (A) such payments are intended to compensate the Executive fully for the performance of the Executive’s covenants set forth in Sections 1 through 4 above during the Post-Termination Period, and (B) the Executive is not entitled
to receive any payments under this Section 6 in the event the Executive’s employment is terminated other than under one of the circumstances described in this Section 6(a). 

(b) Timing of Payment. The payment payable to the Executive pursuant to Section 6(a) above shall be divided into twenty-six (26)
equal installments and paid bi-weekly over the fifty-two (52) week period beginning on the same payroll payment date on which the Executive’s severance payments commence under the Severance Agreement. 

(c) Termination of Payments. The Executive expressly acknowledges and agrees that his right to continue to receive the payments
hereunder is subject to his continued compliance with the restrictive covenants set forth in Sections 1 through 4 of this Agreement. If the Company determines that the Executive is in violation of any of the provisions of such restrictive covenants,
then the Company, following written notice to the Executive explaining the basis for its decision, may, except as provided in Section 7(a) below, suspend any future payments scheduled to be made pursuant to this Section 6; provided, however, that:

 (i) the burden of proving that the Executive is in violation of any of the restrictive covenants set forth in
Sections 1 through 4 of this Agreement shall be on the Company; 
 (ii) the Company shall pay all expenses
incurred by the Executive in prosecuting or defending any proceeding pursuant to Section 7(a) hereof with regard to such determination by the Company as they are incurred by the Executive in advance of the final disposition of such proceedings,
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); 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 affirmatively determines that the Company is the prevailing party, taking into account all claims made by any such party to such proceeding; and 
  

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 (iii) all payments described in Section 6 of this Agreement shall continue
to be made or provided on the dates provided herein as if no such violation exists, except in the event a final determination pursuant to the arbitration provisions of Section 7(a) has been rendered and such determination provides that the Executive
is, in fact, in violation of any of the restrictive covenants set forth in Sections 1 through 4 of this Agreement. 
 In order to
implement the principle of this Section 6(c), in the event that an arbitrator determines that the Executive has violated any of the provisions of Sections 1 through 4 of this Agreement, the arbitrator may require that the Executive return to the
Company any amounts paid to the Executive pursuant to Section 6(c)(iii) following the date of such violation. 
 (d)
Term. This Section 6, and the Executive’s right to receive payments hereunder, shall have an initial term (the “Term”) of two years and shall terminate and be of no further force or effect on the second anniversary of the
Effective Date; provided, however, that commencing on the second anniversary of the Effective Date and on each anniversary thereafter (each an “Extension Date”), the Term shall be automatically extended for an additional one-year period,
unless the Company provides the Executive with written notice at least 30 days before the next Extension Date that the Term shall not be so extended. Notwithstanding anything in this Agreement to the contrary, upon the occurrence of a Change of
Control, the Term shall automatically be extended until the latest of (i) the second anniversary of the consummation of the Change of Control or (ii) the expiration of the Post-Termination Period if a termination triggering the payment of the
benefits described in this Section 6 occurs during the 24-month period following a Change in Control, or (iii) the expiration of all of the Company’s and/or any successor’s obligations under this Agreement. 

 

	 	7.	Miscellaneous. 

 (a)
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 National Rules for Resolution of Employment Disputes of the American Arbitration Association (“AAA”) 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; provided, however, that provisional injunctive relief may, but need not, be sought in a court of law or equity in aid of arbitration while arbitration
proceedings are pending, and any provisional injunctive relief granted by such court shall remain effective until the matter is finally determined by the arbitrator. The arbitration shall be administered by AAA pursuant to its Commercial Arbitration
Rules. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. 
 The parties acknowledge and
agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with any of
the matters referenced in the first sentence of the first paragraph of this Section 7(a). 
  

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 The parties agree that the Company shall be responsible for payment of the forum costs of
any arbitration hereunder, including the arbitrator’s fee. The parties further agree that in any proceeding with respect to such matters, the prevailing party will be entitled to recover its reasonable attorney’s fees and costs from the
non-prevailing party (other than forum costs associated with the arbitration which in any event shall be paid by the Company). 

Without limiting the remedies available to the parties and notwithstanding the foregoing provisions of this Section 7(a), the Executive
and the Company acknowledge that any breach of any of the covenants or provisions contained in Sections 1, 2, 3 or 4 of this Agreement could result in irreparable injury to either of the parties hereto for which there might be no adequate remedy at
law, and that, in the event of such a breach or threat thereof, the non-breaching party shall be entitled to obtain a temporary restraining order and/or a preliminary injunction and a permanent injunction restraining the other party hereto from
engaging in any activities prohibited by any covenant or provision in Sections 1, 2, 3 or 4 of this Agreement or such other equitable relief as may be required to enforce specifically any of such covenants or provisions. 

(b) Successors. 

(i) This Agreement is personal to the Executive and shall not, without the prior written consent of the Company, be
assignable by the Executive. 
 (ii) This Agreement shall inure to the benefit of and be binding upon the
Company, its subsidiaries and its successors and any successor to the Company shall be deemed substituted for the Company under the terms of this Agreement for all purposes. As used herein, “successor” shall include any person, firm,
corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires either a controlling interest in the voting stock of the Company or substantial portion of or the business of the
Company. This Agreement shall be considered to be assigned to any such successor, whether that happens by operation of law, operation of the terms of this Agreement, or otherwise. 

(c) 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. 

(d) Modification. This Agreement may not be amended or modified other than by a written agreement executed by the Executive and
the Company. 
 (e) Severability. It is the desire and intent of the parties that the provisions of this Agreement shall
be enforced to the fullest extent permissible under applicable law. If any provision of this Agreement or any part of any such provision is held under any circumstances to be invalid or unenforceable by any arbitrator or court of competent
jurisdiction, then: (i) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be modified by such arbitrator or court to conform to applicable laws so as to be valid and enforceable to the fullest
possible extent; (ii) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other
circumstances or in any other jurisdiction; (iii) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other
provision of this Agreement. Each provision of this Agreement is separable from every other provision of this Agreement, and each part of each provision of this Agreement is separable from every other part of such provision. 

 

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 (f) Complete Agreement. This Agreement (together with such provisions of the
Employment Agreement as are necessary to give effect to Section 6 hereof) constitutes and contains the entire agreement and final understanding concerning the subject matters addressed herein between the parties. This Agreement 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 Noncompetition Agreement). Any representation, promise or agreement not specifically included in this Agreement shall not be binding upon or enforceable against either party. This Agreement constitutes a fully
integrated agreement. 
 (g) Governing Law. This Agreement shall be deemed to have been executed and delivered in the
State of Colorado, which is the State in which the Executive is principally employed by the Company as of the date of this Agreement, and the rights and obligations of the parties hereunder shall be construed and enforced in accordance with, and
governed by, by the laws of that particular State without regard to principles of conflict of laws. 
 (h) 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.

 (i) Section 409A. 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 U.S. Internal Revenue Code (including the Treasury regulations and other published guidance relating thereto) (“Section 409A”) 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. 

(j) 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 the Executive’s most recent address on record with the Company, or addressed to the Company at
26220 Enterprise Court, Lake Forest, CA 92630, Attention: General Counsel, with a copy to the attention of the Senior Vice President, Human Resources. Either party may change the address at which notice shall be given by written notice given in the
above manner. 
  

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

							
	APRIA HEALTHCARE GROUP INC.	    	EXECUTIVE	 	
				
	By	 	 /s/ Norman C. Payson, M.D.
	    	 /s/ Daniel E. Greenleaf
	 	12/30/08
		 	 Norman C. Payson, M.D.

Chief Executive Officer
	    	Daniel E. Greenleaf	 	

  

 11Management Unit Subscription Agreement (Norman C. Payson and BP Healthcare)

 Exhibit 10.13 

MANAGEMENT UNIT SUBSCRIPTION AGREEMENT 

(Class B 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 B 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 
  

 1 

 
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 Change of
Control. The term “Change of Control” shall have the meaning set forth in either the LLC Agreement or the Amended and Restated Limited Liability Company Agreement of Sky Acquisition LLC, dated as of the date hereof, as it may be
amended or supplemented thereafter from time to time. 
 1.7 Closing. The term “Closing” shall have the meaning
set forth in Section 2.2. 
 1.8 Closing Date. The term “Closing Date” shall have the meaning set forth in
Section 2.2. 
 1.9 Company. The term “Company” shall have the meaning set forth in the preface.

 1.10 Constructive Termination. The term “Constructive Termination” shall be deemed to have occurred upon
(A) the failure of the Company or its Subsidiaries to pay or cause to be paid Executive’s base salary, annual bonus, director’s fees and reimbursable expenses (in each case, if any) when due under the Employment Agreement (or, if
applicable, the Services Agreement attached thereto); (B) a reduction in such base salary, target annual bonus or director’s fees payable under the Employment Agreement (or, if applicable, the Services Agreement attached thereto), but
excluding as a result of Executive ceasing to be Chief Executive Officer of Holdings or Apria as contemplated by Sections 2(c), 3(a) or 3(b) of the Employment Agreement; (C) any substantial and sustained diminution in Executive’s authority
or responsibilities as of the Closing Date, but excluding as a result of Executive ceasing to be Chief Executive Officer of Holdings or Apria as contemplated by Sections 2(c), 3(a) or 3(b) of the Employment Agreement or (D) any material breach
by the Company or its Subsidiaries of any material agreement with Executive; provided that none of these events shall constitute Constructive Termination unless the Company fails to cure such event within 30 days after receipt from Executive
of written notice specifying in reasonable detail the event which 
  

 2 

 
constitutes Constructive Termination; provided, further, that “Constructive Termination” shall cease to exist for an event on the 90th day following the later of its occurrence or
Executive’s knowledge thereof, unless Executive has given the Company written notice thereof prior to such date. 
 1.11
Cost. The term “Cost” shall mean the price per Unit paid by Executive, if any, 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. 

1.12 Disability. The term “Disability” shall mean Executive’s inability, for a period of six (6) consecutive
months or for an aggregate of twelve (12) months in any twenty-four (24) consecutive month period, to perform Executive’s employment duties as a result of Executive becoming physically or mentally incapacitated. Any question as to the
existence of the Disability of Executive as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and the Company. If Executive and the Company cannot
agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third physician who shall make such determination in writing. The determination of Disability made in writing to the Company
and Executive shall be final and conclusive for all purposes of the Agreement. 
 1.13 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. 
 1.14
Executive. The term “Executive” shall have the meaning set forth in the preface. 
 1.15 Executive’s
Group. The term “Executive’s Group” shall have the meaning set forth in Section 4.1(a). 
 1.16 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 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 
  

 3 

 
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). 

1.17 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”). 

1.18 LLC Agreement. The term “LLC Agreement” shall have the meaning set forth in the Securityholders Agreement.

 1.19 Management Investors. The term “Management Investors” shall have the meaning set forth in the preface.

 1.20 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. 
 1.21 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). 

1.22 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. 

1.23 Public Offering. The term “Public Offering” shall have the meaning set forth in the Securityholders Agreement.

 1.24 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. 
 1.25 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. 
 1.26 Sponsor. The term “Sponsor” means Blackstone. 

1.27 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. 
  

 4 

 1.28 Termination Date. The term “Termination Date” means the date upon
which Executive’s employment with the Company and its Subsidiaries is terminated. 
 1.29 Unvested Units. The term
“Unvested Units” means, with respect to Executive’s Class B Units, the number of such Units that are not “Vested Units”. 

1.30 Vested Units. The term “Vested Units” shall mean, with respect to an Executive’s Class B Units, the number of
such Units that are vested, as determined in accordance with Schedule I attached hereto. The Board may elect at any time to treat Units as Vested Units by resolution. 

1.31 Vesting Date. The term “Vesting Date” shall mean, October 28, 2008. 

2. Subscription for and Grant of Units. 

2.1 Grant of Units. Pursuant to the terms and subject to the conditions set forth in this Agreement, Executive hereby subscribes
for and agrees to acquire, and the Company hereby agrees to issue and award to Executive on the Closing Date, the number of Units set forth on Executive’s Master Signature Page in exchange for services performed for the Company and its
Subsidiaries by Executive. 
 2.2 The Closing. The closing (the “Closing”) of the grant of Units
hereunder shall take place one business day following the date hereof. The date of the Closing shall be the “Closing Date”. 

2.3 Section 83(b) Election. Within 10 days after the Closing, Executive shall provide the Company with a copy of a completed
election under Section 83(b) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder in the form of Exhibit A to Executive’s Master Signature Page. Executive shall timely (within 30 days of the Closing)
file (via certified mail, return receipt requested) such election with the Internal Revenue Service and shall thereafter notify the Company it has made such timely filing. Executive should consult his tax advisor regarding the consequences of a
Section 83(b) election, as well as the receipt, vesting, holding and sale of Units. 
 2.4 Closing Conditions.
Notwithstanding anything in this Agreement to the contrary, the Company shall be under no obligation to issue, grant 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. 
  

 5 

 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; 

(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 

 

 6 

 
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; 
 (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) 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. 
  

 7 

 (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. 
 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 or is terminated by the Company or any of its Subsidiaries or by Executive as a result of Executive’s Disability, 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 Vested Units then held by Executive’s
Group that equals all Vested 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 Vested 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 Vested 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 as a result of the Disability of Executive, (2) due to the death of
Executive or (3) prior to the fourth anniversary of the Vesting Date, by Executive (other than as a result of a Constructive Termination), then the Company shall have the right, for 90 days following the later of (x) the applicable
Termination Date, or (y) if applicable, to avoid adverse accounting treatment, the date that is six months and 

 

 8 

 
one day after the date on which Executive became vested in the applicable Units (the “Call Option”), and each member of Executive’s Group shall be required to sell to the
Company, all Vested 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 or Disability; Voluntary
Resignation. If Executive’s employment with the Company and its Subsidiaries is terminated (x) by the Company or any of its Subsidiaries as a result of the Disability of Executive, (y) due to the death of Executive or (z) by
Executive prior to the fourth anniversary of the Vesting Date (other than as a result of a Constructive Termination), the purchase price per Unit will be the Fair Market Value thereof (measured as of the Valuation Date). 

The Call Option in respect of Vested Units shall expire upon the occurrence of a Public Offering. For purposes of clarification, the number of Vested
Units shall be determined after giving effect to the provisions of Schedule I attached hereto. 
 (b) If
Executive’s employment with the Company and its Subsidiaries is terminated for any reason, all Unvested Time-Vesting Units (as defined in Schedule I hereto) will be forfeited (or, to the extent a forfeiture is not permissible under applicable
law for any reason, the Unvested Time-Vesting Units shall be subject to the Call Option in Section 4.2(a) with the purchase price per Unvested Time-Vesting Units equal to the lesser of (A) Fair Market Value thereof (measured as of the
Valuation Date) and (B) Cost). All Unvested Performance-Vesting Units (as defined in Schedule I hereto) shall remain outstanding and shall become Vested Units or be terminated in accordance with Schedule I hereto. 

(c) 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. 

(d) 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. 
  

 9 

 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 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 
  

 10 

 
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. 
 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. 
  

 11 

 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 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. 

 

 12 

 (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. 
 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 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 

 

 13 

 
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. 

*    *    *    *    * 

 

 14 

*    *    *    *    * 

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. 

*    *    *    *    * 

 

 1 

 EXECUTIVE MASTER SIGNATURE PAGE 

Norman C. Payson 

(Executive’s Name) 

Dated as of: November 21, 2008 (the “Commitment Date”) 

 

	A.	The individual named above and signatory hereto (the “Executive”) agrees to be bound by: 

 

	 	(1)	the Second Amended and Restated Limited Liability Company Agreement of BP Healthcare Holdings LLC, a Delaware limited liability company (the
“Company”), in the form attached hereto (the “BP LLC Agreement”); 

  

	 	(2)	the Management Unit Subscription Agreement (Class A-2 Units), between the Company and the Executive, dated as of the Commitment Date, in the form attached hereto (the
“Co-Investment Subscription Agreement”); 

  

	 	(3)	the Management Unit Subscription Agreement (Class B Units), between the Company and the Executive, dated as of the Commitment Date, in the form attached hereto (the
“Promote Subscription Agreement” and, together with the Co-Investment Subscription Agreement, the “Subscription Agreements”); and 

 

	 	(4)	the Securityholders Agreement, among the Company and the other parties thereto (including the Executive), in the form attached hereto (the “Securityholders
Agreement”). 

  

	B.	The Executive and the Company agree that the following information is hereby incorporated by reference into the Subscriptions Agreements: 

 

						
	 Class of Units

	  	Number of
Units
	  	Cash Paid 
(if any)
	 Class A-2 Units
	  	10,000,000	  	$	10,000,000
	 Class B Units
	  	38,697,318	  	 	N/A

  

	C.	The Executive agrees that, upon the request of the Company, Executive shall promptly and duly execute and deliver such further instruments and documents and take such
further actions as the Company may reasonably request for the purpose of giving effect to the foregoing. 

[Remainder of Page Intentionally Blank] 
  

 1 

	
	Executive:
	
	/s/ Norman C. Payson
	Name: Norman C. Payson
	
	Address:
	
	
	
	Executive is an “accredited investor” within the meaning of Rule 501(a) under the Securities Act of 1933, as amended.

 

 1 

			
	Agreed and accepted:
	
	BP HEALTHCARE HOLDINGS LLC
		
	By:	 	/s/ Neil P. Simpkins
		 	Name: Neil P. Simpkins
		 	Title: President

  

 2 

 SCHEDULE I 

Time-Vesting Units 

With regard to 80% of the Class B Units granted hereunder (the “Time-Vesting Units”), the percentage of such Time-Vesting Units that
will be Vested Units in respect of a Termination Date occurring: 
  

	 	•	 	 prior to 3 months after the Vesting Date, will be 0% 

  

	 	•	 	 on or after 3 months after the Vesting Date, but prior to 6 months after the Vesting Date, will be 6.25% 

 

	 	•	 	 on or after 6 months after the Vesting Date, but prior to 9 months after the Vesting Date, will be 12.5% 

 

	 	•	 	 on or after 9 months after the Vesting Date, but prior to 12 months after the Vesting Date, will be 18.75% 

 

	 	•	 	 on or after 12 months after the Vesting Date, but prior to 15 months after the Vesting Date, will be 25% 

 

	 	•	 	 on or after 15 months after the Vesting Date, but prior to 18 months after the Vesting Date, will be 31.25% 

 

	 	•	 	 on or after 18 months after the Vesting Date, but prior to 21 months after the Vesting Date, will be 37.5% 

 

	 	•	 	 on or after 21 months after the Vesting Date, but prior to 24 months after the Vesting Date, will be 43.75% 

 

	 	•	 	 on or after 24 months after the Vesting Date, but prior to 27 months after the Vesting Date, will be 50% 

 

	 	•	 	 on or after 27 months after the Vesting Date, but prior to 30 months after the Vesting Date, will be 56.25% 

 

	 	•	 	 on or after 30 months after the Vesting Date, but prior to 33 months after the Vesting Date, will be 62.50% 

 

	 	•	 	 on or after 33 months after the Vesting Date, but prior to 36 months after the Vesting Date, will be 68.75% 

 

	 	•	 	 on or after 36 months after the Vesting Date, but prior to 39 months after the Vesting Date, will be 75% 

 

	 	•	 	 on or after 39 months after the Vesting Date, but prior to 42 months after the Vesting Date, will be 81.25% 

	 	•	 	 on or after 42 months after the Vesting Date, but prior to 45 months after the Vesting Date, will be 87.5% 

 

	 	•	 	 on or after 45 months after the Vesting Date, but prior to 48 months after the Vesting Date, will be 93.75% 

 

	 	•	 	 on or after 48 months after the Vesting Date, will be 100%; 

Notwithstanding the foregoing: 
  

	 	•	 	 immediately prior to, and following, the occurrence of a Change of Control that occurs prior to the Termination Date, 100% of the Time-Vesting Units
that are Unvested Units shall become Vested Units; 

  

	 	•	 	 if the Sponsor receives cash proceeds in respect of 50% of its units in Holdings (measured as of the Vesting Date) equal to at least 200% of the
Sponsor’s aggregate capital contributions in respect of such units prior to the Termination Date, 100% of the Time-Vesting Units that are Unvested Units shall become Vested Units; and 

 

	 	•	 	 if Executive’s employment with the Company and its Subsidiaries is terminated (x) by the Company or any of its Subsidiaries without Cause or
(y) by Executive as a result of a Constructive Termination, then an additional number of Time-Vesting Units equal to the number that would have vested over the 24 month period following the Termination Date shall become Vested Units immediately
prior to such termination. 

 Except as provided in the immediately preceding sentence, any Time-Vesting Units that are
Unvested Units on a Termination Date shall be immediately forfeited by Executive (or, to the extent a forfeiture is not permissible, such Time-Vesting Units that are Unvested Units shall be subject to the Call Option in Section 4.2(a) with the
purchase price per Unvested Unit equal to the lesser of (A) Fair Market Value thereof (measured as of the Valuation Date) and (B) Cost). 
  

 I-2 

 Performance-Vesting Units 

1. Any Class B Units that are not Time-Vesting Units will be “Performance-Vesting Units.” Initially, all Performance-Vesting Units will
be Unvested Units. 
 2. If the Sponsor receives cash proceeds in respect of its units in Holdings equal to at least 200% of its aggregate
capital contributions for all such units, 50% of the Performance-Vesting Units shall become Vested Units. 
 3. If the Sponsor receives cash
proceeds in respect of its units in Holdings equal to at least 300% of its aggregate capital contributions for all such units, 100% of the Performance-Vesting Units shall become Vested Units. 

Any Performance-Vesting Units that are Unvested Units on termination of Executive’s employment (i) by the Company without Cause, (ii) by
Executive as a result of Constructive Termination or (iii) by Executive for any reason on or following the fourth anniversary of the Vesting Date, will remain outstanding until the second anniversary of the Termination Date (unless such
Performance-Vesting Units become Vested Units prior to such second anniversary). Except as provided in the immediately preceding sentence, any Performance-Vesting Units that are Unvested Units on termination of Executive’s employment (or upon
the second anniversary referred to in the immediately preceding sentence) shall be immediately forfeited by Executive (or, to the extent a forfeiture is not permissible, such Performance-Vesting Units that are Unvested Units shall be subject to the
Call Option in Section 4.2(a) with the purchase price per Unvested Unit equal to the lesser of (A) Fair Market Value thereof (measured as of the Valuation Date) and (B) Cost). 

 

 I-3 

 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 proviso, 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. 

 (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 
  

 A-2 

 
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. 

 

 A-3

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