Document:

YEAR 2000 NON

YEAR 2000 NON-QUALIFIED

STOCK OPTION PLAN

OF

SUNRISE MEDICAL INC.

 

     SUNRISE MEDICAL INC., a corporation organized under
the laws of the State of Delaware, hereby adopts this Year 2000 Non-Qualified
Stock Option Plan of Sunrise Medical Inc. by the action of its Board of
Directors as of February 28, 2000, without stockholder approval.

The purposes of this Plan are as follows:

     (1)  To further the growth, development
and financial success of the Company by providing additional incentives to its
Associates, Consultants and Non-Associate Directors by assisting them to become
owners of the Company's Common Stock and thus to benefit directly from its
growth, development and financial success.

     (2)  To enable the Company to obtain and
retain the services of the type of professional, technical and managerial
Associates and Consultants considered essential to the long-range success of the
Company by providing and offering them an opportunity to become owners of the
Company's Common Stock under non-qualified stock options.

ARTICLE I

DEFINITIONS

     Whenever the following terms are used in this Plan,
they shall have the meaning specified below unless the context clearly indicates
to the contrary. The masculine pronoun shall include the feminine and neuter and
the singular shall include the plural, where the context so indicates.

Section 1.1 - Administrator

     "Administrator" shall mean the entity that conducts
the administration of the Plan (including the grant of Options) as provided
herein. With reference to the administration of the Plan with respect to an
Option granted or to be granted to Non-Associate Directors, the term
"Administrator" shall refer to the Board. With reference to the
administration of the Plan with respect to an Option granted or to be granted to
Associates or Consultants, the term "Administrator" shall refer to the
Committee, unless and to the extent (a) the Board has assumed the authority for
administration of all or any part of the Plan as permitted in Section 6.2 or (b)
the Committee has delegated the authority for administration of all or part of
the Plan as permitted by Section 6.5.

Section 1.2 - Associate

     "Associate" shall mean any Employee (as defined in
accordance with the regulations and revenue rulings then applicable under
Section 3401(c) of the Code) of the Company, or of any corporation which is then
a Parent Corporation or a Subsidiary, whether such Employee is so employed at
the time this Plan is adopted or becomes so employed subsequent to the adoption
of this Plan.

Section 1.3 - Board

     "Board" shall mean the Board of Directors of the Company, as
constituted from time to time.

Section 1.4 - Committee

     "Committee" shall mean the Compensation Committee of the
Board, or another committee or subcommittee of the Board, appointed as provided
in Section 6.1.

Section 1.5 - Company

     "Company" shall mean Sunrise Medical Inc. In addition,
"Company" shall mean any corporation assuming, or issuing new
stock options in substitution for, Options outstanding under the Plan.

Section 1.6 - Consultant

     "Consultant" shall mean any consultant or adviser if:

     (a)  the consultant or adviser renders bona fide services to the
Company;

     (b)  the services rendered by the consultant or adviser are not in
connection with the offer or sale of securities in a capital-raising transaction
and do not directly or indirectly promote or maintain a market for the Company's
securities; and

     (c)  the consultant or adviser is a natural person who has
contracted directly with the Company to render such services.

Section 1.7 - Director

     "Director" shall mean a member of the Board.

Section 1.8 - Exchange Act

     "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended from time to time.

Section 1.9 - Non-Associate Director

     "Non-Associate Director" shall mean a Director who is not an
Associate.

Section 1.10 - Officer

     "Officer" shall mean an officer of the Company, as defined
in Rule 16a-1(f) under the Exchange Act, as such Rule may be amended in the
future.

Section 1.11 - Option

     "Option" shall mean a non-qualified option to purchase
Common Stock of the Company, granted under the Plan. Options granted under the
Plan are not intended to qualify under Section 422 of the Internal Revenue Code
of 1986, as amended.

Section 1.12 - Optionee

     "Optionee" shall mean an Associate, Consultant or a
Non-Associate Director to whom an Option is granted under the Plan.

Section 1.13 - Parent Corporation

     "Parent Corporation" shall mean any corporation in an
unbroken chain of corporations ending with the Company if each of the
corporations other than the Company then owns stock possessing 50% or more of
the total combined voting power of all classes of stock in one of the other
corporations in such chain.

Section 1.14 - Plan

     "Plan" shall mean this Year 2000 Non-Qualified Stock Option
Plan of Sunrise Medical Inc., as amended and/or restated from time to time.

Section 1.15 - Rule 16b-3

     "Rule 16b-3" shall mean that certain Rule 16b-3 under the
Exchange Act, as such Rule may be amended from time to time.

Section 1.16 - Secretary

     "Secretary" shall mean the Secretary of the Company.

Section 1.17 - Subsidiary

     "Subsidiary" shall mean any corporation in an unbroken chain
of corporations beginning with the Company if each of the corporations other
than the last corporation in the unbroken chain then owns stock possessing 50%
or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

Section 1.18 - Termination of Consultancy

     "Termination of Consultancy" shall mean the time when the
engagement of Optionee as a consultant to the Company or a Subsidiary is
terminated for any reason, with or without cause, including without limitation,
by resignation, discharge, death or retirement; but excluding terminations where
there is a simultaneous commencement of employment with the Company or any
Subsidiary. The Administrator, in its absolute discretion, shall determine the
effect of all matters and questions relating to Termination of Consultancy,
including, but not by way of limitation, the question of whether a Termination
of Consultancy resulted from a discharge for good cause, and all questions of
whether particular leaves of absence constitute Terminations of Consultancy.
Notwithstanding any other provision of this Plan, the Company or any Subsidiary
has an absolute and unrestricted right to terminate a Consultant's service at
any time for any reason whatsoever, with or without cause, except to the extent
expressly provided otherwise in writing.

Section 1.19 - Termination of Directorship

     "Termination of Directorship" shall mean the time when a
Director ceases to be a member of the Board for any reason, including, but not
by way of limitation, a termination by resignation, expiration of term, removal
(with or without cause), retirement or death. The Board, in its sole and
absolute discretion, shall determine the effect of all matters and questions
relating to Termination of Directorship.

Section 1.20 - Termination of Employment

     "Termination of Employment" shall mean the time when the
employee-employer relationship between the Associate and the Company, a Parent
Corporation or a Subsidiary is terminated for any reason, with or without cause,
including, but not by way of limitation, a termination by resignation,
discharge, death, disability, or retirement, but excluding (i) terminations
where there is a simultaneous reemployment by the Company, a Parent Corporation
or a Subsidiary, (ii) at the discretion of the Administrator, terminations which
result in a temporary severance of the employee-employer relationship, and (iii)
at the discretion of the Administrator, terminations which are followed by the
simultaneous establishment of a consulting relationship by the Company or a
Subsidiary with the former Associate. The Administrator, in its absolute
discretion, shall determine the effect of all other matters and questions
relating to Termination of Employment, including, but not by way of limitation,
the question of whether a Termination of Employment resulted from a discharge
for good cause, and all questions of whether particular leaves of absence
constitute Terminations of Employment. Notwithstanding any other provision of
this Plan, the Company or any Subsidiary has an absolute and unrestricted right
to terminate an Associate's employment at any time for any reason whatsoever,
with or without cause, except to the extent expressly provided otherwise in
writing.

ARTICLE II

SHARES SUBJECT TO PLAN

Section 2.1 - Shares Subject to Plan

     The shares of stock subject to Options shall be shares of the Company's $1.00
par value Common Stock. The aggregate number of such shares which may be issued
upon exercise of Options shall initially be Three Million (3,000,000) shares,
and, upon termination of the Company's Second Amended and Restated 1993 Stock
Option Plan, as amended and/or restated from time to time (the "Restated
1993 Plan") the aggregate number of shares that may be issued upon exercise
of Options under this Plan shall be increased, on a share per share basis, by
the number of shares remaining available for option grant under the Restated
1993 Plan. The foregoing increase shall be implemented without consideration of
the 1.5% of outstanding shares annual increase under the Restated 1993 Plan,
thus only giving consideration of the 4,000,000 aggregate share limitation under
the Restated 1993 Plan.

Section 2.2 - Unexercised Options; Retained or Surrendered Shares

     If any Option expires or is canceled without having been fully exercised, the
number of shares subject to such Option but as to which such Option was not
exercised prior to its expiration or cancellation may again be optioned
hereunder, subject to the overall limitation of Section 2.1. Shares of stock
which are received or retained by the Company upon the exercise of options
pursuant to Section 5.3(b) or Sections 5.3(c) and 5.4(d) may also again be
optioned hereunder, subject to the overall limitation of Section 2.1.

Section 2.3 - Changes in Company's Shares

     In the event that the outstanding shares of Common Stock of the Company are
hereafter changed into or exchanged for a different number or kind of shares or
other securities of the Company, or of another corporation, by reason of
reorganization, merger, consolidation, recapitalization, reclassification, stock
split-up, stock dividend or combination of shares, appropriate adjustments shall
be made by the Administrator in the number and kind of shares for the purchase
of which Options may be granted, including adjustments of the limitations in
Section 2.1 on the maximum number and kind of shares which may be issued on
exercise of Options.

ARTICLE III

GRANTING OF OPTIONS

Section 3.1 - Eligibility

     Each Associate of the Company, any Parent or any Subsidiary, including,
without limitation, each Associate who is employed on a full-time basis in the
United States by the Company, any Parent or any Subsidiary and who is an
"exempt employee" as defined under the Fair Labor Standards Act of
1938, as amended, shall be eligible to be granted Options under the Plan. In
addition, each Consultant and Non-Associate Director of the Company or of any
corporation which is then a Parent Corporation or a Subsidiary shall also be
eligible to be granted Options under the Plan.

Section 3.2 - Limitations on Grants to Officers and Directors

     Notwithstanding anything herein to the contrary, not more than 49% of all
Options actually granted during the earlier of (i) the first three years
following the adoption of this Plan or (ii) the term of this Plan, may be
granted to Officers and Directors. All Options granted in excess of this
limitation shall be null and void and of no force or effect.

Section 3.3 - No Qualification as Incentive Stock Options

     No Option shall qualify as an "incentive stock option" under
Section 422 of the Internal Revenue Code of 1986, as amended.

Section 3.4 - Granting of Options

(a)  The Administrator shall from time to time, in its absolute
discretion:

  (1)  Select from among the Associates, Consultants and
  Non-associate Directors (including those individuals to whom Options have been
  previously granted under the Plan) such of them as in its opinion should be
  granted Options; and

  (2)  Determine the number of shares to be subject to such
  Options; and

(3)  Determine the terms and conditions of such Options, consistent
with the Plan; and

  (4)  Instruct the Secretary to issue such Options and may impose
  such conditions on the grant of such Options as it deems appropriate.

ARTICLE IV

TERMS OF OPTIONS

Section 4.1 - Option Agreement

     Each Option shall be evidenced by a written Stock Option Agreement, which
shall be executed by the Optionee and an authorized Officer of the Company and
which shall contain such terms and conditions as the Administrator shall
determine, consistent with the Plan.

Section 4.2 - Option Price

     (a)  The price of the shares subject to an Option shall be the fair
market value of such shares on the date that such Option is granted; provided,
however, that the Administrator, in its sole discretion, has the authority to
set the price of the shares subject to an Option at a price per share that is
less than or greater than the fair market value of such shares on the date the
Option is granted.

     (b)  For purposes of the Plan, the fair market value of a share of
the Company's Common Stock as of a given date shall be: (i) the closing price of
a share of the Company's Common Stock on the principal exchange on which shares
of the Company's Common Stock are then trading, if any, on the trading day
previous to such date, or, if shares were not traded on the trading day previous
to such date, then on the next preceding trading day during which a sale
occurred; or (ii) if such Common Stock is not traded on an exchange but is
quoted on NASDAQ or a successor quotation system, (1) the last sales price (if
the Company's Common Stock is then listed as a National Market Issue under the
NASD National Market System) or (2) the mean between the closing representative
bid and asked prices (in all other cases) for the Company's Common Stock on the
trading day previous to such date as reported by NASDAQ or such successor
quotation system; or (iii) if such Common Stock is not publicly traded on an
exchange and not quoted on NASDAQ or a successor quotation system, the mean
between the closing bid and asked prices for the Company's Common Stock, on the
trading day previous to such date, as determined in good faith by the
Administrator; or (iv) if the Company's Common Stock is not publicly traded, the
fair market value established by the Administrator acting in good faith. For
purposes of the intial grant of options under the Plan on March 1, 2000, the
fair market value of a share of the Company's Common Stock on March 1, 2000,
shall be the last sales price as reported by NASDAQ on March 1, 2000.

Section 4.3 - Commencement of Exercisability

     (a)  Options shall become exercisable at such times and in such
installments (which may be cumulative) as the Administrator shall provide in the
terms of each individual Option; provided, however, that by a
resolution adopted after an Option is granted the Administrator may, on such
terms and conditions as it may determine to be appropriate, accelerate the time
at which such Option or any portion thereof may be exercised.

     (b)  Except as provided in the applicable Stock Option Agreement
executed hereunder, no portion of an Option which is unexercisable at
Termination of Employment, Termination of Consultancy or Termination of
Directorship, as applicable, shall thereafter become exercisable.

Section 4.4 - Expiration of Options

     (a)  No Option may be exercised to any extent by anyone after the
expiration of ten years from the date the Option was granted.

     (b)  Subject to the provisions of Section 4.4(a), the Administrator
shall provide, in the terms of each individual Option, when such Option expires
and becomes unexercisable.

     (c)  The Administrator may extend the term of any outstanding
Option in connection with any Termination of Employment, Termination of
Consultancy or Termination of Directorship of the Optionee, or amend any other
term or condition of such Option relating to such a termination.

Section 4.5 - Consideration

     In consideration of the granting of an Option, the Optionee shall agree, in
the written Stock Option Agreement, to remain in the employ (or, in the case of
a Non-Associate Director, as a Director) of the Company, a Parent Corporation or
a Subsidiary for a period of at least one year after the Option is granted.
Nothing in this Plan or in any Stock Option Agreement hereunder shall confer
upon any Optionee any right to continue in the employ or as a Director of the
Company, any Parent Corporation or any Subsidiary or shall interfere with or
restrict in any way the rights of the Company and its Parent Corporation and
Subsidiaries, which are hereby expressly reserved, to discharge (or, in the case
of a Non-Associate Director, to remove) any Optionee at any time for any reason
whatsoever, with or without cause.

Section 4.6 - Adjustments in Outstanding Options

     In the event that the outstanding shares of the stock subject to Options are
changed into or exchanged for a different number or kind of shares of the
Company or other securities of the Company or of any other corporation by reason
of merger, consolidation, recapitalization, reclassification, stock split-up,
stock dividend or combination of shares, the Administrator shall make an
appropriate and equitable adjustment in the number and kind of shares as to
which all outstanding Options, or portions thereof then unexercised, shall be
exercisable, to the end that after such event the Optionee's proportionate
interest shall be maintained as before the occurrence of such event. Such
adjustment in an outstanding Option shall be made without change in the total
price applicable to the Option or the unexercised portion of the Option (except
for any change in the aggregate price resulting from rounding-off of share
quantities or prices) and with any necessary corresponding adjustment in Option
price per share. Any such adjustment made by the Administrator shall be final
and binding upon all Optionees, the Company and all other interested persons.

Section 4.7 - Merger, Consolidation, Acquisition, Liquidation or Dissolution

     Notwithstanding the provisions of Section 4.6, in its absolute discretion,
and on such terms and conditions as it deems appropriate, in the event of the
merger or consolidation of the Company with or into another corporation, the
acquisition by another corporation, person or group of persons of all or
substantially all of the Company's assets or 40% or more of the Company's then
outstanding voting stock, or the liquidation or dissolution of the Company or
any other transaction deemed by the Board to involve a change in control of the
Company (a "Corporate Transaction"), the Administrator may, but is not
obligated to, provide by the terms of any Option or by that a resolution adopted
prior to the occurrence of such Corporate Transaction that (i) upon such
Corporate Transaction, such Option shall be exercisable as to all shares covered
thereby, notwithstanding anything to the contrary in Section 4.3 and/or any
installment provisions of such Option, (ii) or such Option cannot be exercised
and is terminated after the Corporate Transaction, and if the Administrator so
provides, it must on such terms and conditions as it deems appropriate, also
provide that for some period of time prior to such Corporate Transaction that
such Option shall be exercisable as to all shares covered thereby,
notwithstanding anything to the contrary in Section 4.3 and/or any installment
provisions of such Option.

ARTICLE V

EXERCISE OF OPTIONS

Section 5.1 - Person Eligible to Exercise

     During the lifetime of the Optionee, only the Optionee, or any permitted
transferee pursuant to Section 7.1 hereof, may exercise an Option (or any
portion thereof) granted to the Optionee. After the death of the Optionee, any
exercisable portion of an Option may, prior to the time when such portion
becomes unexercisable under the Plan or the applicable Stock Option Agreement,
be exercised by his personal representative or by any person empowered to do so
under the deceased Optionee's will or under the then applicable laws of descent
and distribution.

Section 5.2 - Partial Exercise

     At any time and from time to time prior to the time when any exercisable
Option or exercisable portion thereof becomes unexercisable under the Plan or
the applicable Stock Option Agreement, such Option or portion thereof may be
exercised in whole or in part; provided, however, that the Company
shall not be required to issue fractional shares and the Administrator may, by
the terms of the Option, require any partial exercise to be with respect to a
specified minimum number of shares.

Section 5.3 - Manner of Exercise

     An exercisable Option, or any exercisable portion thereof, may be exercised
solely by delivery to the Secretary or his office of all of the following prior
to the time when such Option or such portion becomes unexercisable under the
Plan or the applicable Stock Option Agreement:

  (a)  Notice in writing signed by the Optionee or other person
  then entitled to exercise such Option or portion, stating that such Option or
  portion is exercised, such notice complying with all applicable rules
  established by the Administrator; and

  (b)  (1) Full payment (in cash or by check) for the shares with
  respect to which such Option or portion is thereby exercised; or

  
    (2)  With the consent of the Administrator, (A) shares of the
    Company's Common Stock owned for at least six months by the Optionee, duly
    endorsed for transfer to the Company or (B) shares of the Company's Common
    Stock issuable to the Optionee upon exercise of the Option, in either case,
    with a fair market value (as determined under Section 4.2(b)), on the date
    of option exercise equal to the aggregate Option price of the shares with
    respect to which such Option or portion is thereby exercised; or

    (3)  With the consent of the Administrator, allow payment, in
    whole or in part, through the delivery of a notice that the Optionee has
    placed a market sell order with a broker with respect to the shares of
    Common Stock then issuable upon exercise of the Option, and that the broker
    has been directed to pay a sufficient portion of the net proceeds of the
    sale to the Company in satisfaction of the Option exercise price, provided
    that payment of such proceeds is then made to the Company upon settlement of
    such sale;

    (4)  With the consent of the Administrator, any combination of
    the consideration provided in the foregoing subsections (1), (2) and (3);
    and

  

  (c)  The payment to the Company (or other employer corporation)
  of all amounts which it is required to withhold under federal, state or local
  law in connection with the exercise of the Option, which in the discretion of
  the Administrator, may be in the form of consideration used by the Optionee to
  pay for such shares pursuant to Section 5.3(b); and

  (d)  Such representations and documents as the Administrator, in
  its absolute discretion, deems necessary or advisable to effect compliance
  with all applicable provisions of the Securities Act and any other federal or
  state securities laws or regulations. The Administrator may, in its absolute
  discretion, also take whatever additional actions it deems appropriate to
  effect such compliance including, without limitation, placing legends on share
  certificates and issuing stop-transfer orders to transfer agents and
  registrars; and

  (e)  In the event that the Option or portion thereof shall be
  exercised pursuant to Section 5.1 by any person or persons other than the
  Optionee, appropriate proof of the right of such person or persons to exercise
  the Option or portion thereof.

Section 5.4 - Conditions to Issuance of Stock Certificates

     The shares of the Company's Common Stock issuable and deliverable upon the
exercise of an Option, or any portion thereof, may be either previously
authorized but unissued shares or issued shares which have then been reacquired
by the Company. The Company shall not be required to issue or deliver any
certificate or certificates for shares of stock purchased upon the exercise of
any Option or portion thereof prior to fulfillment of all of the following
conditions:

  (a)  The admission of such shares to listing on all stock
  exchanges on which such series or class of stock is then listed; and

  (b)  The completion of any registration or other qualification of
  such shares under any state or federal law or under the rulings or regulations
  of the Securities and Exchange Commission or any other governmental regulatory
  body, which the Administrator shall, in its absolute discretion, deem
  necessary or advisable; and

  (c)  The obtaining of any approval or other clearance from any
  state or federal governmental agency which the Administrator shall, in its
  absolute discretion, determine to be necessary or advisable; and

  (d)  The payment to the Company (or other employer corporation)
  of all amounts which it is required to withhold under federal, state or local
  law in connection with the exercise of the Option, which in the discretion of
  the Administrator, may be in the form of consideration used by the Optionee to
  pay for such shares pursuant to Section 5.3(b); and

  (e)  The lapse of such reasonable period of time following the
  exercise of the Option as the Administrator may establish from time to time
  for reasons of administrative convenience.

Section 5.5 - Rights as Stockholders

     The holders of Options shall not be, nor have any of the rights or privileges
of, stockholders of the Company in respect of any shares purchasable upon the
exercise of any part of an Option unless and until certificates representing
such shares have been issued by the Company to such holders.

Section 5.6 - Transfer Restrictions

     The Administrator, in its absolute discretion, may impose such other
restrictions on the transferability of the shares purchasable upon the exercise
of an Option as it deems appropriate. Any such other restriction shall be set
forth in the respective Stock Option Agreement and may be referred to on the
certificates evidencing such shares.

ARTICLE VI

ADMINISTRATION

Section 6.1 - Committee

     The Compensation Committee of the Board (or another committee or a
subcommittee of the Board assuming the functions of the Administrator under this
Plan) shall serve as the Committee and shall consist of two or more Directors
appointed by and holding office at the pleasure of the Board, provided, however,
that grants to Associates who are considered reporting persons under Section 16
of the Exchange Act are to be administered by a committee or subcommittee
consisting of two or more Directors each of whom satisfies the applicable
requirements of Rule 16b-3. Appointment of Committee members shall be effective
upon acceptance of appointment. Committee members may resign at any time by
delivering written notice to the Board. Vacancies in the Committee may be filled
by the Board.

Section 6.2 - Duties and Powers of Administrator

     It shall be the duty of the Administrator to conduct the general
administration of the Plan in accordance with its provisions. The Administrator
shall have the power to interpret the Plan and the Options and to adopt such
rules for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret, amend or revoke any such rules. In its
absolute discretion, the Board may at any time and from time to time exercise
any and all rights and duties of the Committee under this Plan, except with
respect to matters which under Rule 16b-3 are required to be determined in the
sole discretion of the Committee.

Section 6.3 - Majority Rule

     The Administrator shall act by a majority of its members in office. The
Administrator may act either by vote at a meeting or by a memorandum or other
written instrument signed by a majority of the Administrator.

Section 6.4 - Compensation; Professional Assistance; Good Faith Actions

     Members of the Administrator shall receive such compensation for their
services as members as may be determined by the Board. All expenses and
liabilities incurred by members of the Administrator in connection with the
administration of the Plan shall be borne by the Company. The Administrator may
employ attorneys, Consultants, accountants, appraisers, brokers or other
persons. The Administrator, the Company and its Officers and Directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons.
All actions taken and all interpretations and determinations made by the
Administrator in good faith shall be final and binding upon all Optionees, the
Company and all other interested persons. No member of the Administrator shall
be personally liable for any action, determination or interpretation made in
good faith with respect to the Plan or the Options, and all members of the
Administrator shall be fully protected by the Company in respect to any such
action, determination or interpretation.

Section 6.5 - Delegation of Authority to Grant Awards

     The Committee may, but need not, delegate from time to time some or all of
its authority to grant (and administer the terms of) Options under the Plan to a
committee consisting solely of one or more members of the Committee or
consisting solely of one or more Officers of the Company; provided, however,
that the Committee may not so delegate its authority to grant Options (or
administer the Plan with respect to Options granted) to any individual (i) who
is subject on the date of the grant to the reporting rules under Section 16(a)
of the Exchange Act, (ii) who is an Executive Officer or (iii) who is an
Officer. Any delegation hereunder shall be subject to the restrictions and
limits that the Committee specifies at the time of such delegation of authority
and may be rescinded at any time by the Committee. At all times, any committee
appointed under this Section 6.5 shall serve in such capacity at the pleasure of
the Committee.

ARTICLE VII

OTHER PROVISIONS

Section 7.1 - Transferability of Options

     (a)  No Option or interest or right therein or part thereof shall
be liable for the debts, contracts or engagements of the Optionee or his
successors in interest or shall be subject to disposition by transfer,
alienation, anticipation, pledge, encumbrance, assignment or any other means
whether such disposition be voluntary or involuntary or by operation of law, by
judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and any attempted disposition thereof shall
be null and void and of no effect; provided, however, that nothing
in this Section 7.1 shall prevent transfers by will or by the applicable laws of
descent and distribution, or permitted transfers pursuant to the Section 7.1(b)
hereof.

     (b)  Notwithstanding the foregoing provisions of this
Section 7.1, the Administrator, in its sole discretion, may determine to grant
an Option, which, by its terms or by resolution of the Administrator after its
grant, may be transferred by the Optionee, in writing and with prior written
notice to the Administrator, by (i) gift or contribution, to a "family
member" of the Optionee (as defined under the instructions to use of Form
S-8), or (ii) pursuant to a domestic relations order, provided, that an Option
that has been so transferred shall continue to be subject to all of the terms
and conditions as applicable to the original Optionee, and the transferee shall
execute any and all such documents requested by the Administrator in connection
with the transfer, including without limitation to evidence the transfer and to
satisfy any requirements for an exemption for the transfer under applicable
federal and state securities laws.

Section 7.2 - Amendment, Suspension or Termination of the Plan

     The Plan may be wholly or partially amended or otherwise modified, suspended
or terminated at any time or from time to time by the Board. Neither the
amendment, suspension nor termination of the Plan shall, without the consent of
the holder of the Option, impair any rights or obligations under any Option
theretofore granted. No Option may be granted during any period of suspension
nor after termination of the Plan,

Section 7.4 - Effect of Plan Upon Other Option and Compensation Plans

     The adoption of this Plan shall not affect any other compensation or
incentive plans in effect for the Company, any Parent Corporation or any
Subsidiary. Nothing in this Plan shall be construed to limit the right of the
Company, any Parent Corporation or any Subsidiary (a) to establish any other
forms of incentives or compensation for Associates of the Company, any Parent
Corporation or any Subsidiary or (b) to grant or assume options otherwise than
under this Plan in connection with any proper corporate purpose, including, but
not by way of limitation, the grant or assumption of options in connection with
the acquisition by purchase, lease, merger, consolidation or otherwise, of the
business, stock or assets of any corporation, firm or association.

Section 7.5 - Titles

     Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of the Plan.

Section 7.6 - Conformity to NYSE Requirements

     The Plan is intended to conform to the extent necessary with all
requirements of the New York Stock Exchange permitting an employee benefit plan
to be adopted without stockholder approval, under the "broad-based"
plan exemption as in effect on the date this Plan was adopted. Notwithstanding
anything herein to the contrary, the Plan shall be administered, and Options
shall be granted and may be exercised, only in such a manner as to conform to
such laws, rules and regulations. To the extent permitted by applicable law, the
Plan and Options granted hereunder shall be deemed amended to the extent
necessary to conform to such exception.

_______________

     I hereby certify that the Plan was originally adopted by the Board of
Directors of Sunrise Medical Inc. on February 28, 2000, without obtaining
stockholder approval.

Executed as of _______________, 2000.

 

  
    
      
        
          
            
              __________________________________________

              Steven A. Jaye, Secretary

_____SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

SIXTH AMENDMENT TO

THIRD AMENDED AND RESTATED

CREDIT AGREEMENT

         
THIS SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this "Sixth
Amendment") is made and dated as of June 23, 2000 among SUNRISE
MEDICAL, INC., a Delaware corporation (the "Borrower"), the
subsidiaries of the Borrower signatory hereto as "Subsidiary
Borrowers" or "Guarantors", the lenders (the "Lenders")
party hereto, and BANK OF AMERICA, N.A., as Agent (the "Agent")
and amends that certain Third Amended and Restated Credit Agreement dated as of
August 28, 1997 among the parties hereto, as amended by a First Amendment
and Waiver to Third Amended and Restated Credit Agreement dated as of February
18, 1998, a Second Amendment to Third Amended and Restated Credit Agreement
dated as of August 26, 1998, a Third Amendment to Third Amended and
Restated Credit Agreement dated as of April 28, 1999, a Fourth Amendment
and Waiver to Third Amended and Restated Credit Agreement dated as of
August 25, 1999 and a Fifth Amendment and Waiver to Third Amended and
Restated Credit Agreement (the "Fifth Amendment") dated as of
September 30, 1999 (together with this Sixth Amendment, the "Agreement").

RECITALS

         
A.     Pursuant to the terms of the Fifth Amendment, Section
7.20 was added to the Agreement. Section 7.20 provides that the financial
covenants set forth in Section 7.09, 7.10, 7.11 and 7.19 and the Collateral
Release Conditions will be adjusted upon the consummation of any material asset
disposition or sale and leaseback permitted under the Agreement. Since the date
of the Fifth Amendment, the Borrower has completed the asset dispositions and
sale and leasebacks contemplated by Section 7.20. Subject to the terms and
provisions hereof, the Borrower, the Agent and the Lenders have agreed to amend
Section 7.09, 7.11 and 7.19 to reflect such transactions. The parties have also
agreed that no modification is needed to Section 7.10 or the Collateral Release
Conditions and that Section 7.20 of the Agreement may now be deleted.

         
B.     The Borrower has requested, and the Lenders have
agreed, that Section 7.14 of the Agreement be amended to permit the Borrower to
expend not more than $250,000 to repurchase stock options from the Borrower's
employees.

         
C.     Subject to the terms and provisions hereof, the
Borrower, the Agent and the Lenders have agreed to memorialize their agreements
concerning such matters pursuant to the terms of this Sixth Amendment.

         
NOW, THEREFORE, for good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereby agree as follows:

         
1.     Terms. All
terms used herein shall have the same meanings as in the Agreement unless
otherwise defined herein. All references to the Agreement shall mean the
Agreement as hereby amended.

         
2.     Amendments to Agreement.
The Loan Parties, the Lenders and the Agent hereby agree that the Agreement is
amended as follows:

         
2.1.     Amendments to Section 7.
Section 7 of the Agreement is hereby amended as follows:

                    
(a) Section 7.09 of the Agreement is amended and restated in its entirety as
follows:

  
            
  7.09 Leverage Ratio. Permit the
  Leverage Ratio, as of the end of any Fiscal Quarter, to exceed the following
  ratio:

  
    
    	Fiscal Quarter Ending	Maximum Ratio
	Fourth Quarter 2000 	3.25 to 1
	First Quarter 2001	3.00 to 1
	Second Quarter 2001	3.00 to 1

      (b) Section 7.11 of the Agreement is
    amended and restated in its entirety as follows:

    
    

              
    7.11 Debt Coverage Ratio. Permit the
    Debt Coverage Ratio, as of the end of any Fiscal Quarter, to be less than
    the following ratio:

  
    	Fiscal Quarter Ending	Maximum Ratio
	Fourth Quarter 2000 	1.10 to 1
	First Quarter 2001	1.10 to 1
	Second Quarter 2001	1.25 to 1

    (c) Section 7.14(a) of the Agreement is
    amended and restated in its entirety as follows:

  

           
  (a) repurchases and redemptions by
  Borrower of options or other rights to acquire shares of any class of stock of
  Borrower held by employees of Borrower; provided, however, that
  after giving effect thereto (i) no Default or Event of Default shall exist and
  (ii) the aggregate amount paid from and after June 1, 2000 by Borrower
  and its Subsidiaries in connection therewith shall not exceed $250,000;

           
  (d) Section 7.19 of the Agreement is amended and restated in its entirety
  as follows:

  
           
  7.19 Minimum Consolidated EBITDA.
  Permit cumulative Consolidated EBITDA for the corresponding period set forth
  below ending on the last day of any Fiscal Quarter set forth below, to be less
  than the corresponding amount set forth below:

  
  
    	Fiscal Quarter Ending	Consolidated EBITDA
	Fourth Quarter 2000 
        (4 quarters)	$48,500,000
	First Quarter 2001
      (4 quarters)	$53,000,000
	Second Quarter 2001
      (4 quarters)	$51,500,000

  
  (e) Section 7.20 of the Agreement is hereby
  amended and restated to read in its entirety as follows:

  
  7.20 [Reserved].

  
  

         
3.       Representations and Warranties.
Each of the Loan Parties jointly and severally represent and warrant to the
Lenders and the Agent:

         
3.1.       Authorization.
The execution, delivery and performance of this Sixth Amendment have been duly
authorized by all necessary corporate action by each of them and has been duly
executed and delivered by each of them.

         
3.2.       Binding Obligation.
This Sixth Amendment is the legally valid and binding obligation of each Loan
Party, enforceable in accordance with its terms against each of them
respectively, except as such enforcement may be limited by Debtor Relief Laws or
equitable principles relating to the granting of specific performance and other
equitable remedies as a matter of judicial discretion.

         
3.3.       No Legal Obstacle to Agreement.
Neither the execution of this Sixth Amendment, the making by any Borrower of any
borrowing under the Agreement, nor the performance of the Agreement has
constituted or resulted in or will constitute or result in a breach of the
provisions of any Contractual Obligation to which any Loan Party is a party, or
the violation of any Requirement of Law, or result in the creation under any
agreement or instrument of any security interest, lien, charge, or encumbrance
upon any of the assets of any of them, except as contemplated hereby. No
approval or authorization of any Governmental Agency is required by any Loan
Party to permit the execution, delivery or performance by any Loan Party of this
Sixth Amendment, the Agreement, or the transactions contemplated hereby or
thereby, or the making of any borrowing under the Agreement.

         
3.4.       Incorporation of Certain
Representations. The representations and
warranties set forth in Article 5 of the Agreement, as amended hereby and after
giving effect to all waivers herein, are true and correct in all material
respects on and as of the date hereof as though made on and as of the date
hereof except to the extent any such representation or warranty is expressly
stated to be made as of any other date.

         
3.5.       Default.
After giving effect to this Amendment, no default or Event of Default under the
Agreement has occurred and is continuing.

         
3.6.       No Material Adverse Effect.
Other than as disclosed to the Agent and the Lenders prior to the date hereof,
no event or circumstance has occurred since September 30, 1999 which
constitutes a Material Adverse Effect after giving effect to this Sixth
Amendment.

         
4.       Conditions; Effectiveness.
The effectiveness of this Sixth Amendment shall be subject to the compliance by
the Borrower with its agreements herein contained, and to the delivery of the
following to the Agent in form and substance satisfactory to the Agent:

         
4.1.       Corporate Resolutions.
A copy of a resolution or resolutions passed by the Board of Directors of the
Borrower, certified by the Secretary or an Assistant Secretary of the Borrower
as being in full force and effect on the date hereof, authorizing the amendments
to the Agreement herein provided for and the execution, delivery and performance
of this Sixth Amendment and any note or other instrument or agreement required
hereunder.

         
4.2.       Authorized Signatories.
A certificate, signed by the Secretary or an Assistant Secretary of the Borrower
dated the date hereof, as to the incumbency of the person or persons authorized
to execute and deliver this Sixth Amendment and any instrument or agreement
required hereunder on behalf of the Borrower.

         
4.3.       Attorney's Fees.
Payment of all fees and expenses of the Agent's outside and in-house counsel
invoiced to the Borrower.

         
4.4.       Other Evidence.
Such other evidence with respect to the Borrower or any other person as any
Lender may reasonably request to establish the consummation of the transactions
contemplated hereby, the taking of all corporate action in connection with this
Sixth Amendment and the Agreement and the compliance with the conditions set
forth herein.

         
5.       Miscellaneous.

         
5.1.       Effectiveness of the Agreement.
Except as hereby expressly amended, the Agreement shall remain in full force and
effect and is hereby ratified and confirmed in all respects.

         
5.2.       Acknowledgment of Obligations.
The Borrower hereby (a) confirms and agrees, on behalf of itself and each of its
Subsidiaries, that it and they are indebted to the Agent and the Lenders for all
amounts due and owing under the Agreement and the other Loan Documents without
defense, offset or counterclaim of any kind whatsoever and (b) reaffirms and
admits, on behalf of itself and each of its Subsidiaries, the validity and
enforceability of the Agreement and the other Loan Documents.

         
5.3.       Effectiveness of Agreement and Loan
Documents.

                      
(a) Except as expressly amended hereby,
the Loan Parties agree that each provision of the Agreement and each provision
of each other Loan Document shall continue to be and shall remain, in full force
and effect. This Sixth Amendment shall not be deemed or otherwise construed (a)
to be a waiver of, or consent to, or a modification or amendment of, any other
term or condition of the Agreement or any other Loan Document, (b) except as set
forth herein, to be a commitment or any other undertaking by the Lenders or any
of them to engage in any restructuring of any aspect of the Agreement or the
Loan Documents, (c) to constitute any obligation to further amend or otherwise
modify the Agreement or any Loan Document or (d) to prejudice any other right or
rights which the Agent or the Lenders may now have or may have in the future
under or in connection with the Agreement or the Loan Documents or any of the
instruments or agreements referred to therein, as the same may be amended or
modified from time to time.

                      
(b) This Sixth Amendment is specific in
time and in intent and does not constitute, nor should it be construed as, a
waiver of any other right, power or privilege under the Agreement, or under any
agreement, contract, indenture, document or instrument mentioned in the
Agreement; nor does it preclude any exercise of such other right, power or
privilege or the exercise of any other right, power or privilege, nor shall any
future waiver of any right, power, privilege or default hereunder, or under any
agreement, contract, indenture, document or instrument mentioned in the
Agreement, constitute a waiver of any other default of the same or of any other
term or provision.

         
5.4.       Counterparts.
This Sixth Amendment may be executed in any number of counterparts and all of
such counterparts taken together shall be deemed to constitute one and the same
instrument. This Sixth Amendment shall not become effective until each Loan
Party, the counterparts, and the same shall have been delivered to the Agent.

         
5.5.       Jurisdiction.
This Sixth Amendment, and any instrument or agreement required hereunder, shall
be governed by and construed under the laws of the State of California.

         
IN WITNESS WHEREOF, the
parties hereto have caused this Sixth Amendment to be duly executed and
delivered as of the date first written above.

  
    
      
        
          
            
            BORROWER:

            SUNRISE MEDICAL, INC.,

            as Borrower and as a Guarantor

            By:________________________________

            Ted N. Tarbet

            Senior Vice President and

            Chief Financial Officer

            
            

            GUARANTORS:

            DYNAVOX SYSTEMS, INC.

            SUNMED FINANCE INC.

            SUNRISE MARIN HOLDINGS INC.

            SUNRISE MEDICAL CCG INC.

            SUNRISE MEDICAL HHG INC.

            By:________________________________

            Ted N. Tarbet

            Treasurer

            
            

            BANK OF AMERICA, N.A.,
            as Agent

            
            By:________________________________

            Name:______________________________

            Title:_____________________________

            
             

            
            BANK OF AMERICA, N.A.,
            as a Lender

            
            By:________________________________

            Name:______________________________

            Title:_____________________________

            
            

            ABN AMRO BANK NV Los
            Angeles International Branch

            
            By:________________________________

            Name:______________________________

            Title:_____________________________

            
            

            UNION BANK OF
            CALIFORNIA, N.A.

            
            By:________________________________

            Name:______________________________

            Title:_____________________________

            
            

            MORGAN GUARANTY TRUST
            COMPANY OF NEW YORK

            
            By:________________________________

            Name:______________________________

            Title:_____________________________

            
            

            DEUTSCHE BANK AG, New
            York Branch and/or Cayman Islands Branch

            
            By:________________________________

            Name:______________________________

            Title:_____________________________

            
             

            
            By:________________________________

            Name:______________________________

            Title:_____________________________

            
             

            
            PNC BANK, NATIONAL
            ASSOCIATION

            
            By:________________________________

            Name:______________________________

            Title:_____________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]