Document:

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                                                                   EXHIBIT 10.29

                     FIRST AMENDMENT TO TRANSITION AGREEMENT

This First Amendment to Transition Services Agreement is made as of this 21st
day of December, 1999 by and between Smith & Nephew, Inc. ("S&N") and DonJoy,
L.L.C. ("DonJoy, L.L.C.")

                             PRELIMINARY STATEMENTS

A.  S&N and DonJoy, L.L.C. entered into a certain Transition Services Agreement
    dated as of June 30, 1999 ("Transition Services Agreement").

B.  S&N and DonJoy, L.L.C. mutually desire to amend the Transition Services
    Agreement.

NOW THEREFORE, the parties hereto agree as follows:

Item 9 of Exhibit A to the Transition Services Agreement is hereby deleted in
its entirely and the following shall be substituted in lieu thereof:

    "S&N will act as the sole authorized European representative for CE
    regulation through December 31, 1999. The parties acknowledge that DonJoy,
    L.L.C. has retained the services of Quality First International Limited
    ("QFI") to serve as its authorized European representative commencing
    January 1, 2000. The parties further acknowledge that certain products sold
    by DonJoy, L.L.C. and its predecessor prior to December 31, 1999 and DonJoy,
    L.L.C. products in inventory as of December 31, 1999 designate S&N as the
    authorized European representative (collectively "Covered Products"). The
    parties also acknowledge that incidents relating to the Covered Products may
    be reported to S&N since S&N was the designated authorized European
    representative. S&N agrees to refer all inquiries, comments and complaints
    received by S&N as the designated European representative for the Covered
    Products to QFI at 20 Eversley Road, Bexhill on Sea, East Sussex, TN40 1HE,
    United Kingdom. S&N shall have the right to terminate the obligations set
    forth in this Item 9 by providing thirty (30) days prior written notice to
    DonJoy, L.L.C.; provided, however, such notice shall not be given any
    earlier than November 30, 2000. DonJoy, L.L.C. shall have the right to
    terminate the rights and obligations under this Item 9 any time by prior
    written notice to S&N. S&N shall have no obligations after December 31, 1999
    with respect to authorized European representative matters other than to
    make the referrals to QFI as described above and provide documents, notices,
    information or materials received by S&N relating to Covered Products to QFI
    in an expeditious manner. Without limiting the foregoing, S&N shall not be
    obligated to make any adverse incident notification submissions. DonJoy,
    L.L.C. agrees not to identify S&N as the authorized European representative
    in conjunction with any product that are manufactured by or on behalf of
    DonJoy, L.L.C. after December 31, 1999."

    SMITH & NEPHEW, INC.                DONJOY, L.L.C.

    By: _____________________           By: _____________________

    Title: __________________           Title: __________________<PAGE>   1
                                                                   EXHIBIT 10.30

                              AMENDED AND RESTATED
                                 DONJOY, L.L.C.
                                1999 OPTION PLAN

        1. PURPOSE OF THE PLAN

               The purpose of the Amended and Restated DonJoy, L.L.C. 1999
Option Plan (the "Plan") is (i) to further the growth and success of, DonJoy,
L.L.C. (the "Company") and its Subsidiaries (as hereinafter defined) by enabling
directors and employees of, and independent consultants and contractors to, the
Company and any of its Subsidiaries to acquire equity ownership interests in the
Company (the "Units"), thereby increasing their personal interest in such growth
and success, and (ii) to provide a means of rewarding outstanding performance by
such persons to the Company and/or its Subsidiaries. For purposes of the Plan,
the term "Subsidiary" shall mean "Subsidiary Corporation" as defined in Section
424(f) of the Internal Revenue Code of 1986, as amended.

        2. ADMINISTRATION OF THE PLAN

               (a) Option Committee

                      The Plan shall be administered by the Board of Managers of
the Company (the "Board") or a three-person Option Committee (the "Committee")
appointed from time to time by the Board. Any reference in the Plan to action by
the Company means action by or under the authority of the Board or the
Committee. The members of the Committee may be removed by the Board at any time
either with or without cause. Any vacancy on the Committee, whether due to
action of the Board or any other cause, shall be filled by the Board. The term
"Committee" shall, for all purposes of the Plan other than this Section 2, be
deemed to refer to the Board if the Board is administering the Plan.

               (b) Procedures

                      The Committee shall adopt such rules and regulations as it
shall deem appropriate concerning the holding of meetings and the administration
of the Plan. A majority of the entire Committee shall constitute a quorum and
the actions of a majority of the members of the Committee present at a meeting
at which a quorum is present, or actions approved in writing by all of the
members of the Committee, shall be the actions of the Committee.

               (c) Interpretation

                      Except as otherwise expressly provided in the Plan, the
Committee shall have all powers with respect to the administration of the Plan,
including, without limitation, full power and authority to interpret the
provisions of the Plan and any Option Agreement (as defined in Section 5(b)),
and to resolve all questions arising under the Plan. All decisions of the Board
or the Committee, as the case may be, shall be conclusive and binding on all
participants in the Plan.

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        3. UNITS SUBJECT TO THE PLAN.

               (a) Number of Units

                      Subject to the provisions of Section 9 (relating to
adjustments upon changes in capital structure and other limited liability
company transactions), the maximum number of Units subject at any one time to
options granted under the Plan ("Options"), plus the number of Units theretofore
issued and delivered pursuant to the exercise of Options granted under the Plan,
shall not in aggregate exceed 148,799 Units, as follows:

                             (i) Options relating to up to 55,520 Units may be
        granted pursuant to Option Agreements substantially in the form of
        Exhibit A hereto ("Tier I Options");

                             (ii) Options relating to up to 37,013 Units may be
        granted pursuant to Option Agreements substantially in the form of
        Exhibit B hereto ("Tier II Options");

                             (iii) Options relating to up to 46,266 Units may be
        granted pursuant to Option Agreements substantially in the form of
        Exhibit C hereto ("Tier III Options"); and

                             (iv) Options relating to up to 10,000 Units may be
        granted pursuant to Option Agreements substantially in the form of
        Exhibit D hereto ("Non-Employee Options").

               If and to the extent that Options granted under clauses (i)
through (iv) above terminate, expire or are canceled without having been fully
exercised, new Options may be granted under clauses (i) through (iv) above with
respect to the Units covered by the unexercised portion of such terminated,
expired or canceled Options.

               (b) Character of Units

                      The Units issuable upon exercise of an Option granted
under the Plan shall be (i) authorized but unissued Units, (ii) Units held in
the Company's treasury or (iii) a combination of the foregoing.

               (c) Reservation of Units

                      The number of Units reserved for issuance under the Plan
shall at no time be less than the maximum number of Units which may be purchased
at any time pursuant to outstanding Options.

        4. ELIGIBILITY

               Options may be granted under the Plan only to (i) persons who are
employees of, or independent consultants to, the Company or any of its
Subsidiaries and (ii) persons who are directors or managers of the Company or
any of its Subsidiaries. Notwithstanding the foregoing,

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Options may be conditionally granted to persons who are prospective employees or
directors or managers of, or independent consultants to, the Company or any of
its Subsidiaries.

        5. GRANT OF OPTIONS

               (a) General

                      Options may be granted under the Plan at any time and from
time to time on or prior to the tenth anniversary of the Effective Date (as
defined in Section 11). Subject to the provisions of the Plan, the Committee
shall have plenary authority, in its discretion, to determine:

                             (i) the persons (from among the class of persons
        eligible to receive Options under the Plan) whom Options shall be
        granted (the "Optionees");

                             (ii) the time or times at which Options shall be
        granted;

                             (iii) the number of Units subject to each Option;

                             (iv) the Option Price of the Units subject to each
        Option; and

                             (v) the time or times when each Option shall become
        exercisable and the duration of the exercise period.

               (b) Option Agreements

                      Each Option granted under the Plan shall be evidenced by a
written agreement (an "Option Agreement"), containing such terms and conditions
and in such form, not inconsistent with the Plan, as the Committee shall, in its
discretion, provide. Each Option Agreement shall be executed by the Company and
the Optionee.

               (c) No Evidence of Employment or Service

                      Nothing contained in the Plan or in any Option Agreement
shall confer upon any Optionee any right with respect to the continuation of his
or her employment by or service with the Company or any of its Subsidiaries or
interfere in any way with the right of the Company or any such Subsidiary
(subject to the terms of any separate agreement to the contrary) at any time to
terminate such employment or service or to increase or decrease the compensation
of the Optionee from the rate in existence at the time of the grant of an
Option.

               (d) Date of Grant

                      The date of grant of an Option under the Plan shall be the
date as of which the Committee approves the grant; provided, however, that the
grant shall in no event be earlier than the date as of which the Optionee
becomes an employee of the Company or one of its Subsidiaries.

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        6. OPTION PRICE

               Subject to Section 9, the price (the "Option Price") at which
each Unit subject to an Option granted under the Plan may be purchased shall be
determined by the Committee at the time the Option is granted.

        7. EXERCISABILITY OF OPTIONS

               (a) Committee Determination

                      Each Option granted under the Plan shall be exercisable at
such time or times, or upon the occurrence of such event or events, and for such
number of Units subject to the Option, as shall be determined by the Committee
and set forth in the Option Agreement evidencing such Option. If an Option is
not at the time of grant immediately exercisable, the Committee may (i) in the
Option Agreement evidencing such Option, provide for the acceleration of the
exercise date or dates of the subject Option upon the occurrence of specified
events and/or (ii) at any time prior to the complete termination of an Option,
accelerate the exercise date or dates of such Option.

               (b) Automatic Termination of Options

                      The unexercised portion of any Option granted under the
Plan shall automatically terminate and shall become null and void and be of no
further force or effect upon the first to occur of the following:

                             (i) the end of the stated term thereof;

                             (ii) if the Optionee is an employee, unless a
        shorter period is provided for in any Option Agreement, the expiration
        of three months from the date that the Optionee ceases to be an employee
        of the Company or any of its Subsidiaries (other than as a result of an
        Involuntary Termination (as defined in clause (iii) below) or
        termination For Cause (as defined herein)); provided, however, that if
        the Optionee shall die during such three-month period, the time of
        termination of the unexercised portion of such Option shall be the
        expiration of 12 months from the date that such Optionee ceased to be an
        employee of the Company or any of its Subsidiaries;

                             (iii) if the Optionee is an employee, the
        expiration of 12 months from the date that the Optionee ceases to be an
        employee of the Company or any of its Subsidiaries, if such termination
        is due to such Optionee's death or Disability (as defined below) (an
        "Involuntary Termination");

                             (iv) if the Optionee is an employee, immediately
        upon the date that the Optionee ceases to be an employee of the Company
        or any of its Subsidiaries, if such termination is For Cause;

                             (v) the expiration of such period of time or the
        occurrence of such event as the Committee in its discretion may provide
        in the Option Agreement;

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                             (vi) on the effective date of a Material
        Transaction (as defined in Section 9(b)(i)) to which Section 9(b)(ii)
        (relating to assumptions and substitutions of Options) does not apply;
        and

                             (vii) except to the extent permitted by Section
        9(b)(ii), the date on which an Option or any part thereof or right or
        privilege relating thereto is transferred (otherwise than by will or the
        laws of descent and distribution), assigned, pledged, hypothecated,
        attached or otherwise disposed of by the Optionee.

                      As used herein, "Disability" means any accident, sickness,
incapacity or other disability which (i) renders the Optionee unable to
substantially perform all of his duties for 90 days during any period of 360
consecutive days or (ii) would reasonably be expected to render the Optionee
unable to substantially perform all of his duties for 90 days during any period
of 360 consecutive days, in the case of each of clauses (i) or (ii), as
determined by the Board (excluding the Optionee should he be a member of the
Board at the time of such determination) in its good faith judgment.

                      As used herein, "For Cause" shall mean (i) the failure by
the Optionee to perform such duties as are reasonably requested by the Board or
the Chief Executive Officer of the Company or its Subsidiaries, as applicable,
(ii) the Optionee's failure to observe any material policies of the Company or
its Subsidiaries, as applicable, (iii) gross negligence or willful misconduct by
the Optionee in the performance of his duties, (iv) the commission by the
Optionee of any act of fraud, theft or financial dishonesty with respect to the
Company or any of its Affiliates, or any felony or act involving moral
turpitude, (v) the material breach by the Optionee of his/her employment
agreement (if applicable) with the Company or its Subsidiaries, as applicable,
or of any other agreement or contract with the Company or any Affiliate thereof
(including, without limitation, the Members' Agreement of the Company or any
option agreement which must be entered into pursuant to this Plan), (vi) chronic
absenteeism or (vii) the failure of the Optionee to give at least 30 days' prior
written notice of his termination of employment with the Company or its
Subsidiaries, as applicable. For purposes of this Agreement, "Affiliates" means
dj Orthopedics, LLC (or its successors or assigns) and all subsidiaries thereof.

                      Anything contained in the Plan to the contrary
notwithstanding, unless otherwise provided in an Option Agreement, no Option
granted under the Plan shall be affected by any change of duties or position of
the Optionee (including a transfer to or from the Company or one of its
Subsidiaries), so long as such Optionee continues to be an employee of the
Company or one of its Subsidiaries.

        8. PROCEDURE FOR EXERCISE

               (a) Payment

                      Payment upon exercise of an Option shall be made, at the
election of the Optionee, (i) in cash or personal or certified check payable to
the Company in an amount equal to the aggregate Option Price of the Units with
respect to which the Option is being exercised or (ii) upon the surrender of
Units or option to

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buy Units, in each case with such Units or Options to buy Units, as the case may
be, valued at the Fair Value per Unit (as defined in Section 8) thereof as
determined by the Committee.

               (b) Notice

                      An Optionee (or other person, as provided in Section
10(b)) may exercise an Option granted under the Plan in whole or in part (but
for the purchase of whole Units only), as provided in the Option Agreement
evidencing his Option, by delivering a written notice (the "Notice") to the
Secretary of the Company. The Notice shall state:

                             (i) that the Optionee elects to exercise the
        Option;

                             (ii) the number of Units with respect to which the
        Option is being exercised (the "Optioned Units");

                             (iii) the method of payment for the Optioned Units
        (which method must be available to the Optionee under the terms of his
        or her Option Agreement);

                             (iv) the date upon which the Optionee desires to
        consummate the purchase (which date must be prior so the termination of
        such Option);

                             (v) a copy of any election filed by the Optionee
        pursuant to Section 83(b) of the Code; and

                             (vi) such further provisions consistent with the
        Plan as the Committee may from time to time require.

                      The exercise date of an Option shall be the date on which
the Company receives the Notice from the Optionee.

               (c) Issuance of Certificates

                      The Company shall issue a certificate in the name of the
Optionee (or such other person exercising the Option in accordance with the
provisions of Section 10(b)) for the Optioned Units as soon as practicable after
receipt of the Notice and payment of the aggregate Option Price for such Units.
Neither the Optionee nor any person exercising an Option in accordance with the
provisions of Section 10(b) shall have any privileges as a holder of Units with
respect to any Units subject to an Option granted under the Plan until the date
of payment for such Units pursuant to the Option.

               (d) Determination of Fair Market Value.

                      Fair Market Value of each Unit shall be determined in
accordance with the following:

                             (i) "FAIR VALUE PER UNIT " shall mean, as of any
        date of determination, the fair value of each Unit (or, with respect to
        a warrant or option, the fair value of each Unit obtainable upon
        exercise thereof net of the exercise price), determined as follows:

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        At any time that the Fair Value per Unit shall be required to be
        determined hereunder, the Board shall make a good faith determination
        (the "Board's Determination") of the fair value of each Unit within 30
        days of the delivery by the Company of a Repurchase Notice (as defined
        in the Operating Agreement) (without taking into account that the Units
        may be "restricted securities" but with a reasonable discount, for the
        minority position represented by the Units and shall provide to the
        Member (as defined in the Operating Agreement) with respect to whose
        Unit such determination is being made a written notice thereof which
        notice shall set forth supporting data in respect of such calculation
        (the "Determination Notice"). The Member shall have 10 days following
        receipt of the Determination Notice within which to deliver to the
        Company a written notice (the "Objection Notice") of an objection, if
        any, to the Board's Determination, which Objection Notice shall set
        forth the Member's good faith determination (the "Member's
        Determination") of the fair value of each Unit. The failure by the
        Member to deliver the Objection Notice within such 10-day period shall
        constitute the Member's acceptance of the Board's Determination as
        conclusive. In the event of the timely delivery of an Objection Notice,
        the Company and the Member shall attempt in good faith to arrive at an
        agreement with respect to the Fair Value per Unit, which agreement shall
        be set forth in writing within 15 days following delivery of the
        Objection Notice. If the Company and the Member are unable to reach an
        agreement within such 15-day period, the matter shall be promptly
        referred for determination to a regionally or nationally recognized
        investment banking or valuation firm (the "Valuer") reasonably
        acceptable to the Company and the Member. The Company and the Member
        will cooperate with each other in good faith to select such Valuer. The
        Valuer may select the Board's Determination or the Member's
        Determination as the Fair Value per Unit or may select any other number
        or value (determined without taking into account that the Units may be
        "restricted securities" but with a reasonable discount, not to exceed
        20% for the minority position represented by the Units). The Valuer's
        selection will be furnished to the Company and the Member in writing and
        conclusive and binding upon the Company and the Member. The fees and
        expenses of the Valuer shall be borne equally by the Company and the
        Member with respect to whose Units such determination relates; provided,
        however, that if the Fair Value per Unit, as determined by the Valuer,
        shall be more than 15% greater than the Board's Determination of such
        Fair Value per Unit, then such fees and expenses of the Valuer shall be
        borne entirely by the Company.

        9. ADJUSTMENTS

               (a) Changes in Capital Structure

                      Subject to Section 9(b), if the Unit is changed by reason
of a split, reverse split or recapitalization, or converted into or exchanged
for other securities as a result of a merger, consolidation or reorganization,
the Committee shall make such adjustments in the number and class of Units with
respect to which Options may be granted under the Plan as shall be equitable and
appropriate in order to make such Options, as nearly as may be practicable,
equivalent to such Options immediately prior to such change. A corresponding
adjustment changing the

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number and class of Units allocated to, and the Option Price of, each Option or
portion thereof outstanding at the time of such change shall likewise be made.

               (b) Material Transactions

                      The following rules shall apply in connection with the
dissolution or liquidation of the Company, a reorganization, merger or
consolidation in which the Company is not the surviving corporation, or a sale
of all or substantially all of the assets of the Company to another person or
entity (each, a "Material Transaction"), unless otherwise provided in the Option
Agreement or in the Members' Agreement of even date herewith:

                             (i) each holder of an Option outstanding at such
        time shall be given (A) written notice of such Material Transaction at
        least 20 days prior to its proposed effective date (as specified in such
        notice) and (B) an opportunity, during the period commencing with
        delivery of such notice and ending 10 days prior to such proposed
        effective date, to exercise the Option to the full extent to which such
        Option would have been exercisable by the Optionee at the expiration of
        such 20-day period; provided, however, that upon the occurrence of a
        Material Transaction, all Options granted under the Plan and not so
        exercised shall automatically terminate; and

                             (ii) Notwithstanding anything contained in the Plan
        to the contrary, Section 9(b)(i) shall not be applicable if provision
        shall be made in connection with such Material Transaction for the
        assumption of outstanding Options by, or the substitution for such
        Options of new options covering the equity securities of, the surviving,
        successor or purchasing corporation, or a parent or subsidiary thereof,
        with appropriate adjustments as to the number, kind and option prices of
        Units subject to such options.

               (c) Special Rules

                      The following rules shall apply in connection with Section
9(a) and (b) above:

                             (i) no fractional Units shall be issued as a result
        of any such adjustment, and any fractional Units resulting from the
        computations pursuant to Section 9(a) or (b) shall be eliminated and the
        Optionee shall receive cash consideration for such fractional Unit at
        the rate of the Fair Market Value of such Unit, determined in accordance
        with clause (d) below;

                             (ii) no adjustment shall be made for cash dividends
        or the issuance to holders of rights to subscribe for additional Units
        or other securities; and

                             (iii) any adjustments referred to in Section 9(a)
        or (b) shall be made by the Board or Committee (as the case may be) in
        good faith and shall be conclusive and binding on all persons holding
        Options granted under the Plan.

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        10. RESTRICTIONS ON OPTIONS AND OPTIONED UNITS

               (a) Compliance With Securities Laws

                      No Options shall be granted under the Plan, and no Units
shall be issued and delivered upon the exercise of Options granted under the
Plan, unless and until the Company and/or the Optionee shall have complied with
all applicable Federal or state registration, listing and/or qualification
requirements and all other requirements of law or of any regulatory agencies
having jurisdiction.

                      The Committee in its discretion may, as a condition to the
exercise of any Option granted under the Plan, require an Optionee (i) to
represent in writing that the Units received upon exercise of an Option are
being acquired for investment and not with a view to distribution and (ii) to
make such other representations and warranties as are deemed appropriate by the
Company. Certificates representing Units acquired upon the exercise of Options
that have not been registered under the Securities Act shall, if required by the
Committee, bear the following legend and such additional legends as may be
required by the Option Agreement evidencing a particular Option:

                      "THE UNITS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
                      (THE "SECURITIES ACT"). THE UNITS HAVE BEEN ACQUIRED FOR
                      INVESTMENT AND MAY NOT BE PLEDGED, HYPOTHECATED, SOLD OR
                      TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
                      STATEMENT FOR THE UNITS UNDER THE SECURITIES ACT OR AN
                      OPINION OF COUNSEL TO THE COMPANY THAT REGISTRATION IS NOT
                      REQUIRED UNDER SAID ACT."

               (b) Nonassignability of Option Rights

                      No Option granted under the Plan shall be assignable or
otherwise transferable by the Optionee except by will or by the laws of descent
and distribution. An Option may be exercised during the lifetime of the Optionee
only by the Optionee. If an Optionee dies, his or her Option shall thereafter be
exercisable, during the period specified in Section 7(b)(ii) or (iii) (as the
case may be), by his or her executors or administrators to the full extent to
which such Option was exercisable by the Optionee at the time of his or her
death.

        11. EFFECTIVE DATE OF PLAN

                      The Plan shall become effective on the date of its
adoption by the Board.

        12. EXPIRATION AND TERMINATION OF THE PLAN

                      Except with respect to Options then outstanding, the Plan
shall expire on the first to occur of (i) the fifteenth anniversary of the date
on which the Plan is approved by the holders of Units and (ii) the date as of
which the Board, in its sole discretion, determines that the Plan

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shall terminate (the "Expiration Date"). Any Options outstanding as of the
Expiration Date shall remain in effect until they have been exercised or
terminated or have expired by their respective terms.

        13. AMENDMENT OF PLAN

                      The Board may at any time prior to the Expiration Date
modify and amend the Plan in any respect. No such amendment to the Plan shall
affect the terms or provisions of any Option granted by the Company prior to the
effectiveness of such amendment.

        14. CAPTIONS

                      The use of captions in the Plan is for convenience. The
captions are not intended to provide substantive rights.

        15. WITHHOLDING TAXES

                      Whenever under the Plan, Units are to be delivered by an
Optionee upon exercise of an Option, the Company shall be entitled to require as
a condition of delivery that the Optionee remit or, in appropriate cases, agree
to remit when due, an amount sufficient to satisfy all current or estimated
future Federal, state and local income tax withholding the employee's portion of
any employment tax requirements relating thereto.

        16. OTHER PROVISIONS

                      Each Option granted under the Plan may contain such other
terms and conditions not inconsistent with the Plan as may be determined by the
Committee, in its sole discretion.

        17. NUMBER AND GENDER

                      With respect to words used in the Plan, the singular form
shall include the plural form, the masculine gender shall include the feminine
gender, and vice-versa, as the context requires.

        18. GOVERNING LAW

                      The validity and construction of the Plan and the
instruments evidencing the Options granted hereunder shall be governed by the
laws of the State of Delaware.

AS ADOPTED BY THE BOARD OF MANAGERS
OF DONJOY, L.L.C.
ON JANUARY 20, 2000.

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