HANGER ORTHOPEDIC GROUP INC
10.4 EXE. RESTRICTED STOCK AGMT.
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<DESCRIPTION>10.4 EXE. RESTRICTED STOCK AGMT.
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.4  </FONT></P>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>HANGER ORTHOPEDIC
GROUP, INC.<BR><U>Restricted Stock
Agreement for Executives</U></FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
 AGREEMENT  is made as of  ___________,  by and between  HANGER  ORTHOPEDIC  GROUP,
 INC.,  a Delaware  corporation  (the "Company"), and _______________________ (the
"Employee"). </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>W
I T N E S S E T H</U>: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Company desires to award to the Employee restricted shares of the Company&#146;s
common stock, par value $.01 per share (the &#147;Common Stock&#148;), under the
Company&#146;s 2002 Stock Incentive Plan (the &#147;Plan&#148;) in consideration for the
Employee&#146;s service to the Company and its subsidiaries. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, the parties hereto, intending to be legally bound, do agree as follows: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Award of Restricted Stock</U>.</B> Subject to the terms and conditions of
          this Agreement and the Plan, the Employee is granted _________ shares of Common
          Stock (hereinafter such shares are referred to as the &#147;Restricted
          Stock&#148;) as of the date hereof (the &#147;Grant Date&#148;). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Value of Restricted Stock</U></B><U></U>. The value of each share of the
          Restricted Stock shall be equal to $________, which price equals the closing
          sale price per share of the Common Stock on the New York Stock Exchange on
          __________, the date prior to the Grant Date of the Restricted Stock. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Restricted Stock Non-Assignable and Non-Transferable</U></B><U></U>. 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 subsidiaries 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 13 of this Agreement, are
          herein collectively referred to as the &#147;Forfeiture Restrictions.&#148; The
          Forfeiture Restrictions shall be binding upon and enforceable against any
          transferee of the Restricted Stock. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Termination of Employment.</U> </B>In the event of termination of the
          employment of the Employee with the Company or its subsidiaries by reason of
          total and permanent disability or death, or termination of employment without
          &#147;Cause&#148; (as defined by Employee&#146;s Employment Agreement with the
          Company), 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 or
          termination. In the event of termination of the employment of the Employee with
          the Company or its subsidiaries for &#147;Cause&#148;,( as defined by the
          Employee&#146;s Employment Agreement with the Company), 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. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Vesting of Restricted Stock.</U></B><U></U> 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 one (1) year anniversary
          date of the Grant Date, provided that the Employee has been continuously
          employed by the Company and/or its subsidiaries from the Grant Date through each
          such anniversary of the Grant Date. </FONT></P>






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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U><B>Certificate.</B></U>A certificate evidencing the Restricted Stock
          shall be issued by the Company in the name of the Employee, but held in escrow
          by the Company pursuant to Section 8 of this Agreement, following the execution
          of this Agreement. In addition to any other legends placed on certificates for
          shares of Common Stock as determined by the Company, the certificate for the
          Restricted Stock shall bear the following legends: </FONT></P>

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<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
NOTICE
IS ALSO HEREBY GIVEN THAT THE SALE, PLEDGE, ASSIGNMENT, HYPOTHECATION, TRANSFER OR
DISPOSAL OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED AS SET FORTH IN A
RESTRICTED STOCK AGREEMENT, DATED AS OF ____________, BY AND BETWEEN THE ISSUER AND THE
REGISTERED OWNER HEREOF, A COPY OF WHICH RESTRICTED STOCK AGREEMENT IS ON FILE AT THE
OFFICE OF THE ISSUER, AND ALL OF THE PROVISIONS OF THE RESTRICTED STOCK AGREEMENT ARE
FULLY INCORPORATED BY REFERENCE IN THIS CERTIFICATE. APPROPRIATE STOP-TRANSFER
INSTRUCTIONS HAVE BEEN GIVEN TO THE TRANSFER AGENT OF THE ISSUER WITH RESPECT TO THE
SECURITIES REPRESENTED BY THIS CERTIFICATE. </FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With respect to any Restricted Stock
as to which the Forfeiture Restrictions have terminated, the Employee shall be entitled to
have the Company issue and deliver to the Employee a new certificate for such shares,
without the foregoing legend. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U><B>Withholding of Tax.</B></U>&nbsp;&nbsp;&nbsp;To the extent that the receipt of the
          Restricted Stock or the termination of any Forfeiture Restrictions results in
          income to the Employee for federal or state income tax purposes, the Employee
          shall deliver to the Company at the time of such receipt of the Restricted Stock
          or termination of the Forfeiture Restrictions, as the case may be, such amount
          of money as the Company may require to meet its withholding obligation under
          applicable tax laws or regulations. If the Employee fails to deliver such funds,
          the Company is authorized to withhold from any cash remuneration then or
          thereafter payable to the Employee in an amount equal to the amount of money
          necessary for the Company to satisfy its tax withholding obligations in relation
          to the grant of Restricted Stock or termination of Forfeiture Restrictions. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Escrow.</U></B><U></U> Upon issuance, the certificates for Restricted
          Stock shall be deposited in escrow with the Company to be held in accordance
          with the provisions of this Agreement. Restricted Stock shall be released to the
          Employee upon the termination of all the Forfeiture Restrictions. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Adjustment</U></B><U></U>. If there shall be any change in the Common
          Stock through a merger, consolidation, reorganization, recapitalization, stock
          dividend, stock split, exchange of stock or other change in the corporate
          structure, appropriate adjustments shall be made in the aggregate number of
          shares of Restricted Stock in order to reflect such change. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Merger, Consolidation or Liquidation</U></B><U></U>. At least thirty (30)
          days prior written notice of a merger, consolidation or liquidation of the
          Company shall be given by the Company to the Employee, in which case all
          unvested shares of Restricted Stock shall become fully vested contemporaneously
          with the closing of such merger, consolidation or liquidation of the Company. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>






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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Limitation of Rights</U></B><U></U>. </FONT></P>

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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No
Right to Continue as an Employee</U></B><U></U>. 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.  </FONT></P></TD>
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<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No
Stockholder&#146;s Rights as to Restricted Stock</U></B><U></U>. 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.  </FONT></P></TD>
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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Incorporation by Reference.</U></B><U></U> 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. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Confidentiality.</U></B><U></U> The Employee acknowledges that the
          information, observations, data and trade secrets (collectively,
          &#147;Confidential Information&#148;) obtained or created by him or her during
          the course of his or her employment with the Company or its subsidiaries
          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,
          &#147;trade secret&#148; 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&#146;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 subsidiaries. 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. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 set his hand hereto by his electronic
submission of this Agreement. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>


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