Document:

Exhibit 10.3

 

HANGER
ORTHOPEDIC GROUP, INC.

Restricted
Stock Agreement for Executives

 

THIS AGREEMENT is made by and between HANGER ORTHOPEDIC GROUP, INC.,
a Delaware corporation (the “Company”), and the employee (the “Employee”)
identified on the Company’s on-line electronic list of persons to whom a grant
of restricted stock has been made by the Company.

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to award to the Employee restricted shares
of the Company’s common stock, par value $.01 per share (the “Common Stock”),
under the Company’s 2010 Omnibus Incentive Plan (the “Plan”) in consideration
for the Employee’s service to the Company and its Affiliates.

 

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

 

1.             Award of Restricted Stock.  Subject to the terms and conditions of this
Agreement and the Plan, the Employee is granted the number of shares of Common
Stock as set forth on the Company’s on-line electronic list as being granted to
the Employee (hereinafter such shares are referred to as the “Restricted Stock”)
as shown on the Company’s on-line electronic list as being the date of grant to
the Employee (the “Grant Date”).

 

2.             Value of Restricted Stock.  The initial value of each share of the
Restricted Stock shall be equal to the closing sale price per share of the
Common Stock on the New York Stock Exchange on the date preceding the Grant
Date of the Restricted Stock.

 

3.             Restricted Stock Non-Assignable and Non-Transferable.  Each share of Restricted Stock and all rights
under this Agreement shall be non-assignable and non-transferable other than by
will or the laws of descent and distribution in accordance with the Plan and
may not be sold, pledged, hypothecated, assigned or transferred, except only as
to such shares of Restricted Stock, if any, which have vested pursuant to the
terms of the Plan and this Agreement. 
The foregoing prohibition against transfer or assignment, together with
the obligation to forfeit the Restricted Stock upon termination of service with
the Company and/or its Affiliates as set forth in Section 4 of this
Agreement, are herein collectively referred to as the “Forfeiture Restrictions.”  The Forfeiture Restrictions shall be binding
upon and enforceable against any transferee of the Restricted Stock.

 

4.             Termination of Employment. 
In the event of termination of the employment of the Employee with
the Company or its Affiliates, the Restricted Stock that has not vested as of
the date of such termination shall vest if and to the extent required by the
provisions of the Employee’s Employment Agreement with the Company.  Any Restricted Stock that does not so 

 

 

vest
upon the Employee’s termination of employment shall be forfeited and cancelled
as of the date of such termination of employment.

 

5.             Vesting of Restricted Stock.  Subject to Section 4, the shares of
Restricted Stock are subject to vesting at the rate of twenty-five percent
(25%) of the shares of Restricted Stock on each of the first four anniversaries
of the Grant Date, provided that the Employee has been continuously employed by
the Company and/or its Affiliates from the Grant Date through each such
anniversary of the Grant Date.

 

6.             Certificate.  A
certificate evidencing the Restricted Stock that has vested shall be issued by
the Company in the name of the Employee as soon as practicable (but not more
than thirty (30) days) after such Restricted Stock vests.

 

7.             Limitation
of Rights.

 

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

 

(b)  No Stockholder’s Rights
as to Restricted Stock. 
The Employee shall have no rights as a stockholder with respect to
unvested shares of Restricted Stock granted hereunder until the date such
shares become vested in the Employee, and no adjustment will be made for any
dividends or other rights for which the record date is prior to the date of the
vesting of such shares of Restricted Stock. 
Until the Forfeiture Restrictions on the Restricted Stock lapse, the
Restricted Stock shall be administered by the Company as restricted stock
units.

 

8.             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 Employee, who has accepted this
Agreement and its terms pursuant to Employee’s electronic submission of
Employee’s confirmation of this Agreement in accordance with the instructions
contained on the on-line website maintained for the benefit of the Company for
grants of restricted stock by the Company.

 

2Exhibit 10.4

 

HANGER
ORTHOPEDIC GROUP, INC.

Restricted
Stock Agreement for Employees

 

THIS AGREEMENT is made by and between HANGER ORTHOPEDIC GROUP, INC.,
a Delaware corporation (the “Company”), and the employee (“Employee”)
identified on the Company’s on-line electronic list of persons to whom a grant
of restricted stock has been made by the Company.

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to award to the Employee restricted shares
of the Company’s common stock, par value $.01 per share (the “Common Stock”),
under the Company’s 2010 Omnibus Incentive Plan (the “Plan”) in consideration
for the Employee’s service to the Company and its Affiliates.

 

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

 

1.             Award of Restricted Stock.  Subject to the terms and conditions of this
Agreement and the Plan, the Employee is granted the number of shares of Common
Stock as set forth on the Company’s on-line electronic list as being granted to
the Employee (hereinafter such shares are referred to as the “Restricted Stock”)
as shown on the Company’s on-line electronic list as being the date of grant to
the Employee (the “Grant Date”).

 

2.             Value of Restricted Stock.  The initial value of each share of the
Restricted Stock shall be equal to the closing sale price per share of the
Common Stock on the New York Stock Exchange on the date preceding the Grant
Date of the Restricted Stock.

 

3.             Restricted Stock Non-Assignable and Non-Transferable.  Each share of Restricted Stock and all rights
under this Agreement shall be non-assignable and non-transferable other than by
will or the laws of descent and distribution in accordance with the Plan and
may not be sold, pledged, hypothecated, assigned or transferred, except only as
to such shares of Restricted Stock, if any, which have vested pursuant to the
terms of the Plan and this Agreement. 
The foregoing prohibition against transfer or assignment, together with
the obligation to forfeit the Restricted Stock upon (i) termination of
service with the Company and/or its Affiliates as set forth in Section 4
of this Agreement and/or (ii) a breach by Employee of the confidentiality
provisions as set forth in Section 9 of this Agreement, are herein
collectively referred to as the “Forfeiture Restrictions.”  The Forfeiture Restrictions shall be binding
upon and enforceable against any transferee of the Restricted Stock.

 

4.             Termination of Employment. 
In the event the Employee, while employed  with the Company or its Affiliates, becomes
totally and permanently disabled (within the meaning of Code Section 409A)
or dies, each of the then unvested shares of Restricted Stock will immediately
vest in full as of the date of such total and permanent disability or
death.  In the 

 

 

event
of termination of the employment of the Employee with the Company or its
Affiliates for “Cause” as defined below or in the event of the termination of
employment by the Employee, any then unvested shares of Restricted Stock shall
be forfeited and cancelled as of the date of such termination of
employment.  In the event of the
termination of the employment of the Employee with the Company or its
subsidiaries other than by reason of total and permanent disability or death,
termination for Cause, or termination of employment by the Employee, any then
unvested shares of Restricted Stock shall be forfeited and cancelled as of the
date which is ninety (90) days after such date of termination of service unless
such unvested shares of Restricted Stock vest on or before that date which is
ninety (90) days after such termination of service.  For purposes of this Agreement, the term “Cause”
shall mean (i) the repeated failure or refusal of Employee to follow the
lawful directives of the Company or an Affiliate (except due to sickness, injury
or disabilities), (ii) gross inattention to duty or any other willful,
reckless or grossly negligent act (or omission to act) by Employee, which, in
the good faith judgment of the Company, could result in a material injury to
the Company or an Affiliate, including but not limited to the repeated failure
to follow the policies and procedures of the Company or an Affiliate, (iii) the
commission by the Employee of a felony or other crime involving moral turpitude
or the commission by the Employee of an act of financial dishonesty against the
Company or an Affiliate.

 

5.             Vesting of Restricted Stock.  Subject to Section 4, the shares of
Restricted Stock are subject to vesting at the rate of twenty-five percent
(25%) of the shares of Restricted Stock on each of the first four anniversaries
of the Grant Date, provided that the Employee has been continuously employed by
the Company and/or its Affiliates from the Grant Date through each such
anniversary of the Grant Date.

 

6.             Certificate.  A
certificate evidencing the Restricted Stock that has vested shall be issued by
the Company in the name of the Employee as soon as practicable (but not more
than thirty (30) days) following vesting.

 

7.             Limitation of Rights.

 

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

 

(b)  No Stockholder’s Rights
as to Restricted Stock. 
The Employee shall have no rights as a stockholder with respect to
unvested shares of Restricted Stock granted hereunder until the date such
shares become vested in the Employee and are issued to the Employee, and no
adjustment will be made for any dividends or other rights for which the record
date is prior to the date of the vesting of such shares of Restricted
Stock.   Until the Forfeiture
Restrictions on the Restricted Stock lapse, the Restricted Stock shall be
administered by the Company as restricted stock units.

 

8.             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.

 

2

 

9.             Confidentiality.  The Employee acknowledges that the
information, observations, data and trade secrets (collectively, “Confidential
Information”) obtained or created by him or her during the course of his or her
employment with the Company or its Affiliates concerning the business or
affairs of the Company or any of its Subsidiaries or Affiliates are the
property of the Company.  For purposes of
this Agreement, “trade secret” means any method, program or compilation of
information which is used in the business of the Company or any of its
Subsidiaries or Affiliates, including but not limited to:  (a) techniques, plans and materials used
by the Company or any of its Subsidiaries or Affiliates, (b) marketing
methods and strategies employed by the Company or any of its Subsidiaries or
Affiliates, and (c) all lists of past, present or prospective patients,
customers, suppliers and referral sources of the Company or any of its
Subsidiaries or Affiliates.  The Employee
agrees that he or she will not disclose to any unauthorized person or entity
nor use for his or her own account any of such Confidential Information without
the prior written consent of the Chairman or President of the Company, unless
and to the extent that the aforementioned matters become generally known to and
available for use by the public other than as a result of the Employee’s acts
or omissions to act or become known to the Employee lawfully outside the scope
of his or her employment with the Company or its Affiliates.  The Employee agrees to deliver to the Company
at the termination of his or her employment, or at any other time the Company
may request, all memoranda, notes, plans, records, reports and other documents
(and copies thereof) relating to the business of the Company or any of its
Subsidiaries or Affiliates which the Employee may then possess or have under
his or her control.

 

All
of the terms and conditions of this Agreement are hereby confirmed, ratified,
approved and accepted by the Company and by the Employee, who has accepted this
Agreement and its terms pursuant to Employee’s electronic submission of
Employee’s confirmation of this Agreement in accordance with the instructions
contained on the on-line website maintained for the benefit of the Company for
grants of restricted stock by the Company.

 

3

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"}]]