Document:

Exhibit 10.2

Exhibit 10.2

AMENDMENT TO RESTRICTED STOCK AGREEMENTS

THIS AMENDMENT TO RESTRICTED STOCK AGREEMENTS (“Amendment”), dated as of July 27, 2010
(“Effective Date”), is entered into by and between _____ (“Employee”) and Health Grades, Inc.
(the “Company”), a Delaware corporation, with its principal offices at 500 Golden Ridge Road, Suite
100, Golden, CO 80401. The parties hereby agree to be bound by the following terms and conditions.

Recitals

This Amendment is entered into with reference to the following facts:

	A.	 	Employee is the holder of _____ Restricted Shares of the Company;

	 
	B.	 	The Company and Employee entered into Restricted Stock Agreements (the “Agreements”) on each
of the Grant Dates set forth in the attached Participant Statement;

	 
	C.	 	The Company and Employee wish to amend the terms of each of the Agreements to modify the
definition of “Change in Control” as set forth in this Amendment;

	 
	D.	 	The Company and Employee wish to amend the terms of each of the Agreements to restrict the
application of the Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)
related limitations to apply only to those situations in which the reductions will be
beneficial to the Employee on an after tax basis.

Amendment

NOW, THEREFORE, the parties hereto agree to amend each of the Agreements as follows:

	A.	 	Section 5 of the Agreements shall be amended to read as follows:

“5. Change in Control. (a) A “Change in Control” of the Company shall be deemed to
have occurred immediately prior to the “Acceptance Time” so that at such time, the vesting of any
outstanding Restricted Shares will be immediately accelerated and all restrictions thereon shall
lapse and Grantee may tender the net amount of the shares of Company Stock received on settlement
into the Offer if Grantee elects to do so. The terms Acceptance Time and Offer shall have the
meanings set forth in the Agreement and Plan of Merger proposed to be entered into among the
Company, Mountain Acquisition Corp. and Mountain Merger Sub Corp. on or about July 27, 2010 (the
“Merger Agreement”). Grantee hereby acknowledges that in the event of a Change in Control pursuant
to this Section 5(a), the Company shall withhold such number of shares of Company Stock as is
necessary to satisfy any federal and state income taxes or other taxes that are required to be
withheld from the Grantee upon the vesting of the Restricted Shares. The Grantee further agrees
that if the Grantee elects to tender the net number of shares of Company Stock received on
settlement into the Offer, the Grantee hereby agrees to cooperate with the Company and execute all
documentation necessary to effectuate the foregoing.

(b) Notwithstanding the foregoing, the Company and Grantee agree that if the Acceptance Time
does not occur on or before the End Date, as defined in the Merger Agreement, or in the event that
the Merger Agreement is otherwise abandoned or terminated, Section 5(a) shall become null and void,
and a “Change in Control” of the Company shall have the meaning given to the term “Change of
Control” in the Plan.”

 

 

 

	B.	 	Section 9 of the Agreements shall be amended to read as follows:

“9. Limitation on Change in Control Payments. Notwithstanding anything in this
Agreement to the contrary, if, with respect to Grantee, the acceleration of the vesting of
Restricted Shares as provided in Section 3 of this Agreement (which acceleration could be deemed a
payment within the meaning of Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended
(the “Code”)), together with any other payments which Grantee has the right to receive from the
Company or any corporation which is a member of an “affiliated group” (as defined in
Section 1504(a) of the Code without regard to Section 1504(b) of the Code) of which the Company is
a member (together the “payments”), would constitute an “Excess Parachute Payment” (as defined in
Section 280G(b)(1) of the Code), then the payments provided to Grantee under this Agreement shall
be reduced to the minimum extent necessary (but in no event to less than zero) so that no portion
of any such payment, as so reduced, constitutes an Excess Parachute Payment; provided, however,
that the foregoing reduction will be made only if and to the extent that such reduction would
result in an increase in the aggregate payment to be provided to Grantee, determined on an
after-tax basis (taking into account the excise tax imposed pursuant to Section 4999 of the Code,
or any successor provision thereto, any tax imposed by any comparable provision of state law, and
any applicable federal, state and local income taxes). Grantee agrees to take such action as
Employer reasonably requests to mitigate or challenge the application of such tax, provided that
Employer shall supply such counsel and expert advice, including legal counsel and accounting
advice, as may reasonably be required, and shall be responsible for the payment of such experts’
fees. In the event that any payment intended to be provided under this Agreement or otherwise is
required to be reduced pursuant to this Agreement, Grantee will be entitled to designate the
payments and/or benefits to be so reduced in order to give effect to this Section 9. Employer will
provide Grantee with all information reasonably requested by Grantee to permit Grantee to make such
designation. In the event that Grantee fails to make such designation within five (5) business
days of receiving such information, Employer may effect such reduction in any manner it deems
appropriate.”

Except as expressly provided in this Amendment, all other terms, conditions, and provisions of the
Agreements shall continue in full force and effect as provided therein and neither party waives any
rights, or modifies or revises the parties’ obligations thereunder.

 

2

 

IN WITNESS WHEREOF, the parties have duly executed and delivered this Amendment as of the Effective
Date set forth above.

	 	 	 	 	 	 	 	 	 	 	 
	Health Grades, Inc.	 	 	 	NAME	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By (signature):

	 	 	 	 	 	By (signature):
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:Exhibit 10.3

Exhibit 10.3

HEALTH GRADES, INC.

Grant Notice of Restricted Stock Award

(PERFORMANCE GRANT)

Health Grades, Inc., a Delaware corporation (the “Company”), hereby awards to Grantee as a
bonus the number of shares of the Company’s common stock, $.001 par value per share (“Common
Stock”), set forth below (“Stock Award”). This Stock Award is subject to all of the terms and
conditions as set forth herein and in the Restricted Stock Agreement attached hereto as
Exhibit A and the Health Grades, Inc. 2006 Equity Compensation Plan, as amended from time
to time (the “Plan”). Capitalized terms used herein without definition have the meanings given them
in the Restricted Stock Agreement and the Plan, as applicable.

	 	 	 	 	 
	Grantee:

	 	 	 	 
	 

	 	 	 	 
	Date of Grant:
	 	 	 	 
	 

	 	 	 	 
	Number of Shares Subject to Award:
	 	 	 	 
	 

	 	 	 	 
	Consideration:

	 	Grantee’s Past Services	 	 

Restriction Period Vesting Schedule:

The Restricted Shares subject to this Stock Award are restricted and forfeitable except as
otherwise provided herein, in the Restricted Stock Agreement and the Plan; provided that the
Restriction Period shall lapse as set forth below if, at the time the performance goals set forth
below are met, the Grantee remains employed by, or provides services to, the Employer. The
Restriction Period shall lapse, and the Restricted Shares shall vest as to 25% of the Restricted
Shares, on the achievement of each of the following performance goals:

(a) Achievement of annual revenues of $60 million;

(b) Achievement of annual revenues of $80 million;

(c) Achievement of operating income of $18 million and 30 percent operating margin; and

(d) Achievement of operating income of $25 million and 30 percent operating margin.

In addition, notwithstanding the terms of the Restricted Stock Agreement, if, at the time a
Change of Control occurs the Grantee remains employed by, or provides services to, the Employer,
the Restriction Period shall lapse as to the following percentage of Restricted Shares depending on
when the Change of Control occurs:

If a Change of Control occurs:

Within six months following the date of the award: 25 % of the Restricted Shares

More than six months but less than one year following the date of the award: 50 % of the Restricted
Shares

 

 

 

More than one year but less than two years following the date of the award: 75 % of the Restricted
Shares

More than two years following the date of the award: 100 % of the Restricted Shares

However, if at any time in connection with a Change of Control the stockholders of the Company
receive consideration of at least $8.00 per share, the Restriction Period for all Restricted Shares
shall lapse and 100% of the Restricted Shares shall vest.

The determination of whether a performance goal has been met shall be made by the Compensation
Committee of the Company in its sole discretion. Revenues, operating income and operating margin
shall be determined in accordance with US generally accepted accounting principles. In the event of
a Change of Control, payment for or other disposition of the Shares for which the Restriction
Period lapses shall be governed by Section 14 of the Plan.

Additional Terms/Acknowledgements: The undersigned Grantee acknowledges receipt of, understands
and agrees to be bound by the terms and provisions of, this Grant Notice, the Restricted Stock
Agreement and the Plan. Grantee further acknowledges that as of the Date of Grant, this Grant
Notice and the Restricted Stock Agreement set forth the entire understanding between Grantee and
the Company regarding the Stock Award and supersede all prior oral and written agreements or
understandings on that subject.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	HEALTH GRADES, INC.	 	 	 	Grantee:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Signature
	 	 	 	Signature
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:
	 

	 	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Date:	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

 

 

 

Exhibit A

Restricted Stock Agreement

[ATTACHED]

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