Document:

Exhibit 10.5

 

HANGER
ORTHOPEDIC GROUP, INC.

Non-Employee
Director Non-Qualified Stock Option Agreement

 

THIS AGREEMENT is made by and between HANGER ORTHOPEDIC GROUP, INC.,
a Delaware corporation (the “Company”), and the optionee (“Optionee”)
identified on the Company’s on-line electronic list of persons to whom an
option has been granted by the Company.

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to grant to the Optionee a stock option
under the Company’s 2010 Omnibus Incentive Plan (the “Plan”) to purchase shares
of the Company’s common stock, par value $.01 per share (the “Common Stock”),
in consideration for the Optionee’s service as a member of the Board of
Directors of the Company (the “Board of Directors”).

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, do
agree as follows:

 

1.             Grant of Option.  Subject to the terms and conditions of this
Agreement and the Plan, the Company hereby grants to the Optionee the right and
option to purchase from the Company all or part of the number of shares of
Common Stock as set forth on the Company’s on-line electronic list as being
granted to the Optionee effective as of the date shown on the Company’s on-line
electronic list as being the date of grant to the Optionee (the “Grant Date”).  This option is not intended to qualify as an
incentive stock option within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended.

 

2.             Option Price and Time of Exercise.  The per-share purchase price at which the
shares subject to option may be purchased by Optionee pursuant to the exercise
of this option shall be the closing sale price per share of the Common Stock on
the New York Stock Exchange on the date preceding the Grant Date.  Notwithstanding any provisions of the Plan to
the contrary, the Optionee and the Company agree that the Optionee’s right to
exercise this option shall vest as to one-third of the shares of Common Stock
underlying the option at the end of each of the first three years following the
Grant Date.  The right to exercise the
option shall be cumulative to the extent not theretofore exercised.  The right to exercise the option shall in all
events expire, except as provided in Paragraph 5 below, on the day preceding
the tenth anniversary of the Grant Date (the “Grant Expiration Date”).

 

3.             Method of Exercise and Payment for Shares.  This option shall be exercised by the methods
set forth in the instructions relating thereto as contained on the Company’s
on-line website from which the Optionee has received notice as to the grant of
this option by the Company to the Optionee. 
No fractional shares of Common Stock shall be issued pursuant to the
grant of this option, but in lieu thereof, the cash value of such fraction
shall be paid.

 

 

4.             Option Non-Assignable and Non-Transferable.  This option and all rights hereunder shall be
non-assignable and non-transferable other than by will or the laws of descent
and distribution and shall be exercisable during the Optionee’s lifetime only
by the Optionee or the Optionee’s guardian or legal representative.

 

5.             Exercise After Termination of Membership on the Board
of Directors.   In the
event of termination of the Optionee’s membership on the Board of Directors by
reason of total and permanent disability, this option will immediately vest and
become exercisable in full at any time within one year after such disability,
but in no event after the Grant Expiration Date.  In the event of the termination of the
Optionee’s membership on the Board of Directors by reason of the death of the Optionee,
the option shall immediately vest and become exercisable in full by the
Optionee’s legal representative at any time within one year after death, but in
no event after the Grant Expiration Date. 
In the event of the termination of the Optionee’s membership on the
Board of Directors other than by reason of total and permanent disability or
death, this option will be exercisable, to the extent exercisable on the date
of such termination, at any time within ninety (90) days after such
termination, but in no event after the Grant Expiration Date.

 

6.             Limitation of Rights.

 

(a)  No Right to Continue as
a Director.  Neither the
Plan nor this option shall constitute or be evidence of any agreement or
understanding, express or implied, that the Optionee has a right to continue as
a member of the Company’s Board of Directors for any period of time, or at any
particular rate of compensation.

 

(b)           No Stockholder’s Rights for Options.  The Optionee shall have no rights as a
stockholder with respect to the shares covered by this option until the date of
the issuance of a stock certificate therefor, and no adjustment will be made
for any dividends or other rights for which the record date is prior to the
date such certificate is issued.

 

7.             Incorporation by Reference.  The terms of the Plan to the extent not
stated herein are expressly incorporated herein by reference and in the event
of any conflict between this Agreement and the Plan, the terms of the Plan
shall govern, control and supercede over the provisions of this Agreement.

 

All
of the terms and conditions of this Agreement are hereby confirmed, ratified,
approved and accepted by the Company and by the Optionee, who has accepted this
Agreement and its terms pursuant to Optionee’s electronic submission of Optionee’s
confirmation of this Agreement in accordance with the on-line instructions
relating thereto as set forth on the Company’s on-line website relating to
options.

 

2Exhibit 10.6

 

HANGER ORTHOPEDIC GROUP, INC.

Executive Non-Qualified Stock Option Agreement

 

THIS
AGREEMENT is made as by and between HANGER ORTHOPEDIC GROUP, INC., a
Delaware corporation (the “Company”), and the optionee (“Optionee”) identified
on the Company’s on-line electronic list of persons to whom an option has been
granted by the Company.

 

WHEREAS, the Company desires to grant to Optionee a non-qualified stock
option under the Company’s 2010 Omnibus Incentive Plan to purchase shares of
the Company’s common stock, par value $.01 per share (the “Common Stock”), in
consideration for the Optionee’s service to the Company.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, do
agree as follows:

 

1.             Grant of Option.  Subject to the terms and conditions of this
Agreement, the Company hereby grants to Optionee the right and option to
purchase from the Company all or part of the number of shares of Common Stock
as set forth on the Company’s on-line electronic list as being granted to the
Optionee effective as of the date shown on the Company’s on-line electronic
list as being the date of grant to the Optionee (the “Grant Date”).  This option is not intended to constitute an
incentive stock option within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”).

 

2.             Option Price and Time of Exercise.  The per-share purchase price at which the
shares subject to option hereunder may be purchased by Optionee pursuant to his
exercise of this option shall be the closing sale price per share of the Common
Stock on the New York Stock Exchange on the date preceding the Grant Date.  The Optionee’s right to exercise this option
shall vest as to 25% of the shares of Common Stock underlying the option at the
end of each of the first four years following the Grant Date.  The right to exercise the option shall be
cumulative to the extent not theretofore exercised.  The option shall also vest at such times and
in such amounts as is required by the terms of Optionee’s employment agreement
with the Company.  The right to exercise
the option shall in all events expire, except as provided in Paragraph 5 below,
on the tenth anniversary of the Grant Date (the “Grant Expiration Date”).

 

3.             Method of Exercise and Payment for Shares.  This option shall be exercised by  the methods set forth in the instructions
relating thereto as contained on the Company’s on-line website from which the
Optionee has received notice as to the grant of this option by the Company to
the Optionee.  No fractional shares of
Common Stock shall be issued pursuant to the grant of this option, but in lieu
therefore, the cash value of such fraction shall be paid.

 

4.             Non-transferability.  This option is not transferable by Optionee
except as otherwise provided in Paragraph 5 below, and during Optionee’s
lifetime is exercisable only by him.

 

 

5.             Exercise
After Death or Termination of Service to the Company. In the
event of Optionee’s termination of employment from the Company, the option
shall be exercisable until the date required by the Optionee’s employment
agreement with the Company, but in no event shall the option be exercisable
after the Grant Expiration Date.

 

6.             Limitation
of Rights.

 

(a)           No Right to Continue as an
Employee.  Neither the
Plan nor the grant of the option shall constitute or be evidence of any
agreement or understanding, express or implied, that the Optionee has a right
to continue as an employee of the Company or any of its Affiliates for any
period of time, or at any particular rate of compensation.

 

(b)           No Stockholder’s Rights for Options.  The Optionee shall have no rights as a
stockholder with respect to the shares covered by this option until the date of
the issuance of a stock certificate therefor, and no adjustment will be made
for any dividends or other rights for which the record date is prior to the
date such certificate is issued.

 

7.             Incorporation by Reference.  The terms of the Plan to the extent not
stated herein are expressly incorporated herein by reference and in the event
of any conflict between this Agreement and the Plan, the terms of the Plan
shall govern, control and supercede over the provisions of this Agreement.

 

All
of the terms and conditions of this Agreement are hereby confirmed, ratified,
approved and accepted by the Company and by the Optionee, who has accepted this
Agreement and its terms pursuant to Optionee’s electronic submission of
Optionee’s confirmation of this Agreement in accordance with the on-line
instructions relating thereto as set forth on the Company’s on-line website
relating to options.

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]