Document:

Exhibit
4.1

 

FIRST SUPPLEMENTAL INDENTURE (this “Supplemental
Indenture”), dated as of January 20, 2010, by and among DJO Finance
LLC (formerly known as ReAble Therapeutics Finance LLC), a Delaware limited
liability company (“DJO LLC”), DJO Finance Corporation (formerly knows
as ReAble Therapeutics Finance Corporation), a Delaware corporation (“DJO
Corp.” and, together with DJO LLC, the “Issuers”), the existing
Guarantors listed on Annex A hereto (the “Guarantors”), and
The Bank of New York Mellon, a New York banking corporation, as trustee (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, each of DJO LLC, DJO Corp. and the
Guarantors (as defined in the Indenture referred to below) has heretofore
executed and delivered to the Trustee an indenture (the “Indenture”),
dated as of November 20, 2007, providing for the issuance of an unlimited
aggregate principal amount of 107/8% Senior Notes due 2014 (the
“2007 Notes”);

 

WHEREAS, Section 2.01 of the Indenture
provides that additional notes ranking pari passu with
the Initial Notes may be created and issued from time to time by the Issuers
without notice to or consent of the Holders and shall be consolidated with and
form a single class with the Initial Notes and shall have the same terms as to
status, redemption or otherwise as the Initial Notes; and

 

WHEREAS, the Issuers and the Guarantors
desire to execute and deliver this Supplemental Indenture for the purpose of
issuing $100,000,000 in aggregate principal amount of additional notes, having
terms substantially identical in all material respects to the 2007 Notes (the “Additional
Notes” and, together with the 2007 Notes, the “Notes”), except that
the Additional Notes will be issued initially under CUSIP and ISIN numbers
different from the 2007 Notes as set forth on Schedule I hereto; and

 

WHEREAS, pursuant to Section 9.01 of the
Indenture, the Trustee is authorized to execute and deliver this Supplemental
Indenture.

 

NOW THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties mutually covenant and agree for the equal
and ratable benefit of the Holders of the Notes as follows:

 

(1)           Capitalized Terms.  Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

 

(2)           Additional Securities.  As of the date hereof, the Issuers will
issue, and the Trustee is directed to authenticate and deliver, the Additional
Notes under the Indenture, having terms substantially identical in all material
respects to the 2007 Notes, at an issue price of 105% plus accrued interest
from November 15, 2009.  The 2007
Notes and the Additional Notes shall be treated as a single class for all
purposes under the Indenture.

 

(3)           Governing Law.  THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(4)           Counterparts.  The parties may sign any number of copies of
this Supplemental Indenture.  Each signed
copy shall be an original, but all of them together represent the same agreement.

 

 

(5)           Effect of Headings.  The Section headings herein are for
convenience only and shall not affect the construction hereof.

 

(6)           The Trustee.  The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Issuers and the Guarantors.

 

The
remainder of this page is intentionally left blank.

 

2

 

IN WITNESS WHEREOF, the parties hereto have
caused this Supplemental Indenture to be duly executed, all as of the date
first above written.

 

	
   

  	
   

  	
  DJO
  FINANCE LLC,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  /s/ Leslie H. Cross

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Leslie
  H. Cross

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer and President

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DJO
  FINANCE CORPORATION,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  /s/ Vickie L. Capps

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Vickie
  L. Capps

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President, Chief Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ENCORE
  MEDICAL, L.P.

  ENCORE
  MEDICAL PARTNERS, LLC

  ENCORE
  MEDICAL GP, LLC

  EMPI,
  INC.

  EMPI
  CORP.

  ENCORE
  MEDICAL ASSET CORPORATION

  DJO, LLC,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  /s/ Donald M. Roberts

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Donald
  M. Roberts

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President

  

 

 

	
   

  	
   

  	
  THE
  BANK OF NEW YORK MELLON, a New York banking corporation, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  /s/ Mary Miselis

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Mary
  Miselis

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  

 

 

Schedule I

Additional Notes

CUSIP/ISIN Numbers

 

144A
Notes

 

CUSIP
Number: 23327B AB9

ISIN
Number: US23327BAB99Exhibit
4.2

 

[Face of Note]

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED
IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT
OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER
ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06(h) OF THE
INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN
PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11
OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO
THE ISSUERS OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS.  NEITHER THIS NOTE
NOR THE GUARANTEES ENDORSED HEREON NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.  THE HOLDER OF THIS NOTE AND THE
GUARANTEES ENDORSED HEREON BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER
THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUERS
OR ANY AFFILIATE OF THE ISSUERS WAS THE OWNER OF THIS NOTE AND THE 

 

 

GUARANTEES ENDORSED HEREON (OR ANY PREDECESSOR OF THIS NOTE AND THE
GUARANTEES ENDORSED HEREON) (THE “RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO
THE ISSUERS OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
(“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A ‘‘QUALIFIED INSTITUTIONAL
BUYER’’ DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS
AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE (D) PRIOR TO THE
END OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO
THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM, AND (ii) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A
CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS NOTE IS COMPLETED AND
DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON
THE REQUEST OF A HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

 

CUSIP:      23327BAB9

ISIN:  US23327BAB99

 

RULE 144A GLOBAL NOTE

 

107/8% Senior Notes due 2014

 

	
  No. R-3

  	
  $100,000,000

  

 

DJO FINANCE LLC

DJO FINANCE CORPORATION

 

promises to pay to CEDE &
CO. or registered assigns, the principal sum of ONE HUNDRED MILLION United
States Dollars ($100,000,000) as revised by the Schedule of Exchanges of Interests
in the Global Note attached hereto, on November 15, 2014.

 

Interest Payment Dates:  May 15 and November 15

 

Record Dates:  May 1 and November 1

 

 

IN WITNESS HEREOF, the Issuers have caused this
instrument to be duly executed.

 

Dated: January 20, 2010

	
   

  	
  DJO
  FINANCE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Vickie L. Capps

  
	
   

  	
   

  	
  Name:

  	
  Vickie
  L. Capps

  
	
   

  	
   

  	
  Title:

  	
  Executive
  VP, CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  DJO
  FINANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Vickie L. Capps

  
	
   

  	
   

  	
  Name:

  	
  Vickie
  L. Capps

  
	
   

  	
   

  	
  Title:

  	
  Executive VP, CFO

  

 

Rule
144A Global Note No. 1

 

2

 

This is one of the Notes
referred to in the within-mentioned Indenture:

 

 

	
   

  	
  THE
  BANK OF NEW YORK MELLON, a New York banking corporation, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Miselis

  
	
   

  	
   

  	
  Authorized Signatory

  

 

Rule
144A Global Note No. 1

 

3

 

 

[Back of Note]

 

107/8% Senior Notes due 2014

 

Capitalized terms used
herein shall have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

 

1.                                       INTEREST.  DJO Finance LLC, a Delaware limited liability
company, and DJO Finance Corporation, a Delaware corporation, jointly and
severally promise to pay interest on the principal amount of this Note at 107/8% per annum from November 15, 2009 until
maturity and shall pay the Additional Interest, if any, payable pursuant to the
Registration Rights Agreement referred to below.  The Issuers will pay interest and Additional
Interest, if any, semi-annually in arrears on May 15 and November 15
of each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each, an “Interest Payment Date”).  Interest on the Notes will accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from November 15, 2009; provided that the first Interest
Payment Date shall be May 15, 2010. 
The Issuers will pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
from time to time on demand at the interest rate on the Notes; it shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest and Additional Interest, if
any, (without regard to any applicable grace periods) from time to time on demand
at the interest rate on the Notes. 
Interest will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

2.                                       METHOD OF
PAYMENT.  The Issuers will pay interest
on the Notes and Additional Interest, if any, to the Persons who are registered
Holders of Notes at the close of business on the May 1 or November 1
(whether or not a Business Day), as the case may be, next preceding the
Interest Payment Date, even if such Notes are cancelled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest.  Payment of interest and Additional Interest,
if any, may be made by check mailed to the Holders at their addresses set forth
in the register of Holders; provided that payment by wire transfer of
immediately available funds will be required with respect to principal of and interest,
premium and Additional Interest, if any, on, all Global Notes and all other
Notes the Holders of which shall have provided wire transfer instructions to
the Issuers or the Paying Agent.  Such
payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

 

3.                                       PAYING AGENT
AND REGISTRAR.  Initially, The Bank of
New York Mellon, a New York banking corporation, the Trustee under the
Indenture, will act as Paying Agent and Registrar.  The Issuers may change any Paying Agent or
Registrar without notice to the Holders. 
The Company or any of its Subsidiaries may act in any such capacity.

 

4.                                       INDENTURE.  The Issuers issued the Notes under an
indenture, dated as of November 20, 2007 (the “Base Indenture”),
among DJO Finance LLC, DJO Finance

 

4

 

Corporation, the Guarantors
named therein and the Trustee, as supplemented by the first
supplemental indenture, dated as of January 20, 2010 (the “First
Supplemental Indenture” and, together with the Base Indenture, the “Indenture”),
among DJO Finance LLC, DJO Finance Corporation, the Guarantors named
therein and the Trustee.  This Note is
one of a duly authorized issue of notes of the Issuers, designated as 107/8% Senior Notes due 2014.  The Issuers shall be entitled to issue Additional
Notes pursuant to Section 2.01 and Section 4.09 of the
Indenture.  The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”).  The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of
this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling.

 

5.                                       OPTIONAL
REDEMPTION.

 

(a)                                  Except as
described below under clauses 5(b) and 5(c) hereof, the Notes will
not be redeemable at the Issuers’ option before November 15, 2011.

 

(b)                                 At any time
prior to November 15, 2011, the Issuers may redeem all or a part of the
Notes, upon not less than 30 nor more than 60 days prior notice mailed by
first-class mail to the registered address of each Holder or otherwise
delivered in accordance with the procedures of DTC, at a redemption price equal
to 100% of the principal amount of the Notes redeemed plus the Applicable Premium
as of, and accrued and unpaid interest and Additional Interest, if any, to the
date of redemption (the “Redemption
Date”), subject to the rights of Holders on the relevant Record Date
to receive interest due on the relevant Interest Payment Date.

 

(c)                                  Until November 15,
2010, the Issuers may, at their option, redeem up to 35% of the aggregate
principal amount of Notes issued by them at a redemption price equal to
110.875% of the aggregate principal amount thereof, plus accrued and unpaid
interest thereon and Additional Interest, if any, to the applicable Redemption
Date, subject to the right of Holders of Notes of record on the relevant Record
Date to receive interest due on the relevant Interest Payment Date, with the
net cash proceeds of one or more Equity Offerings; provided that at least 65% of the aggregate principal amount
of Notes originally issued under the Indenture and any Additional Notes that
are Notes issued under the Indenture after the Issue Date remains outstanding
immediately after the occurrence of each such redemption; provided  further that each such redemption occurs within 90 days
of the date of closing of each such Equity Offering.  Notice of any redemption upon any Equity
Offering may be given prior to the redemption thereof, and any such redemption
or notice may, at the Issuers’ discretion, be subject to one or more conditions
precedent, including, but not limited to, the completion of the related Equity
Offering.

 

(d)                                 On and after November 15,
2011, the Issuers may redeem the Notes, in whole or in part, upon not less than
30 nor more than 60 days prior notice by first-class mail, postage prepaid,
with a copy to the Trustee, to each Holder of Notes at the address of such
Holder appearing in the security register, at the redemption prices (expressed
as

 

5

 

percentages of principal
amount of the Notes to be redeemed) set forth below, plus accrued and unpaid
interest thereon and Additional Interest, if any, to the applicable Redemption
Date, subject to the right of Holders of Notes of record on the relevant Record
Date to receive interest due on the relevant Interest Payment Date, if redeemed
during the twelve-month period beginning on November 15 of each of the
years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2011

  	
   

  	
  105.438

  	
  %

  
	
  2012

  	
   

  	
  102.719

  	
  %

  
	
  2013 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(e)                                  Any redemption
pursuant to this paragraph 5 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 of the Indenture.

 

6.                                       MANDATORY
REDEMPTION.  The Issuers shall not be
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

 

7.                                       NOTICE OF
REDEMPTION.  Subject to Section 3.03
of the Indenture, notice of redemption will be mailed by first-class mail at
least 30 days but not more than 60 days before the redemption date (except that
redemption notices may be mailed more than 60 days prior to a redemption date
if the notice is issued in connection with Article 8 or Article 13 of
the Indenture) to each Holder whose Notes are to be redeemed at its registered
address.  Notes in denominations larger
than $2,000 may be redeemed in part but only in whole multiples of $1,000,
unless all of the Notes held by a Holder are to be redeemed.  On and after the redemption date, interest
will cease to accrue on Notes or portions thereof called for redemption.

 

8.                                       OFFERS TO
REPURCHASE.

 

(a)                                  Upon the
occurrence of a Change of Control, the Issuers shall make an offer (a “Change
of Control Offer”) to each Holder to repurchase all or any part (equal to
$2,000 or an integral multiple of $1,000 thereof) of each Holder’s Notes at a
purchase price equal to 101% of the aggregate principal amount thereof plus
accrued and unpaid interest and Additional Interest thereon, if any, to the
date of purchase (the “Change of Control Payment”), subject to the right
of Holders of the Notes of record on the relevant Record Date to receive
interest due on the relevant Interest Payment Date.  The Change of Control Offer shall be made in
accordance with Section 4.14 of the Indenture.

 

(b)                                 If the Company
or any of its Restricted Subsidiaries consummates an Asset Sale, within ten
Business Days of each date that Excess Proceeds exceed $20.0 million, the
Issuers shall commence, an offer to all Holders of the Notes and, if required
by the terms of any Indebtedness that is pari
passu with the Notes or any Guarantee (“Pari Passu Indebtedness”), to the holders of such Pari Passu
Indebtedness (an “Asset Sale Offer”),
to purchase the maximum principal amount of Notes (including any Additional
Notes) and such other Pari Passu Indebtedness that may be purchased out of the
Excess Proceeds at an offer price in cash in an amount equal to 100% of the
principal amount thereof; plus

 

6

 

accrued and unpaid interest
and Additional Interest thereon, if any, to the date fixed for the closing of
such offer, in accordance with the procedures set forth in the Indenture.  To the extent that the aggregate amount of
Notes (including any Additional Notes) and such Pari Passu Indebtedness
tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the
Issuers may use any remaining Excess Proceeds for general corporate purposes,
subject to other covenants contained in the Indenture.  If the aggregate principal amount of Notes or
the Pari Passu Indebtedness surrendered by such holders thereof exceeds the
amount of Excess Proceeds, the Trustee shall select the Notes and such Pari
Passu Indebtedness to be purchased on a pro rata basis
based on the accreted value or principal amount of the Notes or such Pari Passu
Indebtedness tendered.  Additionally, the
Issuers may, at their option, make an Asset Sale Offer using proceeds from any
Asset Sale at any time after consummation of such Asset Sale.  Upon completion of any Asset Sale Offer, any
Net Proceeds not used to purchase Notes in such Asset Sale Offer shall not be
deemed Excess Proceeds and the Company may use any Net Proceeds not required to
be used for general corporate purposes, subject to other covenants contained in
the Indenture.  Holders of Notes that are
the subject of an offer to purchase will receive an Asset Sale Offer from the
Issuers prior to any related purchase date and may elect to have such Notes
purchased by completing the form entitled “Option of Holder to Elect Purchase”
attached to the Notes.

 

9.                                       DENOMINATIONS,
TRANSFER, EXCHANGE.  The Notes are in
registered form without coupons in denominations of $2,000 and integral
multiples of $1,000 in excess thereof. 
The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture.  The Registrar
and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Issuers may require a
Holder to pay any taxes and fees required by law or permitted by the
Indenture.  The Issuers need not exchange
or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part.  Also, the Issuers need not
exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed.

 

10.                                 [RESERVED]

 

11.                                 PERSONS DEEMED
OWNERS.  The registered Holder of a Note
may be treated as its owner for all purposes.

 

12.                                 AMENDMENT,
SUPPLEMENT AND WAIVER.  The Indenture,
the Guarantees or the Notes may be amended or supplemented as provided in the
Indenture.

 

13.                                 DEFAULTS AND
REMEDIES.  The Events of Default relating
to the Notes are defined in Section 6.01 of the Indenture.  If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare the principal, premium, if any, interest
and any other monetary obligations on all the then outstanding Notes to be due
and payable immediately.  Notwithstanding
the foregoing, in the case of an Event of Default arising from certain events
of bankruptcy or insolvency, all outstanding Notes will become due and payable
immediately without further action or notice. 
Holders may not enforce the

 

7

 

Indenture, the Notes or the
Guarantees except as provided in the Indenture. 
Subject to certain limitations, Holders of a majority in aggregate principal
amount of the then outstanding Notes may direct the Trustee in its exercise of
any trust or power.  The Trustee may
withhold from Holders of the Notes notice of any continuing Default (except a
Default relating to the payment of principal, premium, if any, Additional
Interest, if any, or interest) if it determines that withholding notice is in
their interest.  The Holders of not less
than a majority in aggregate principal amount of the Notes then outstanding by
notice to the Trustee may on behalf of the Holders of all of the Notes waive
any existing Default and its consequences under the Indenture, except a continuing
Default in payment of the principal of, premium, if any, Additional Interest,
if any, or interest on, any of the Notes held by a non-consenting Holder and
rescind any acceleration with respect to the Notes and its consequences
(provided such recession would not conflict with any judgment of a court of
competent jurisdiction).  The Issuers and
each Guarantor (to the extent that such Guarantor is so required under the
Trust Indenture Act) are required to deliver to the Trustee annually a
statement regarding compliance with the Indenture, and the Issuers are required
within five Business Days after becoming aware of any Default, to deliver to the
Trustee a statement specifying such Default and what action the Issuers propose
to take with respect thereto.

 

14.                                 GUARANTEES.  The Issuers’ obligations under the Notes are
fully and unconditionally guaranteed, jointly and severally, by the Guarantors.

 

15.                                 AUTHENTICATION.  This Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose until
authenticated by the manual signature of the Trustee.

 

16.                                 ADDITIONAL
RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE
NOTES.  In addition to the rights
provided to Holders of Notes under the Indenture, Holders of Restricted Global
Notes and Restricted Definitive Notes shall have all the rights set forth in
the Registration Rights Agreement, dated as of January 20, 2010, among DJO
Finance LLC, DJO Finance Corporation, the Guarantors named therein and the
other parties named on the signature pages thereof (the “Registration
Rights Agreement”), including the right to receive Additional Interest (as
defined in the Registration Rights Agreement).

 

17.                                 GOVERNING
LAW.  THE LAWS OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THE NOTES AND THE GUARANTEES.

 

18.                                 CUSIP AND ISIN
NUMBERS.  Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the
Issuers have caused CUSIP and ISIN numbers to be printed on the Notes and the
Trustee may use CUSIP and ISIN numbers in notices of redemption as a
convenience to Holders.  No
representation is made as to the accuracy of such numbers either as printed on
the Notes or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

 

8

 

The Issuers will furnish to
any Holder upon written request and without charge a copy of the Indenture
and/or the Registration Rights Agreement. 
Requests may be made to the Issuers at the following address:

 

c/o DJO Finance LLC

1430 Decision Street

Vista, California, 92081

Facsimile:  (760) 743-3536

Attention:  General Counsel

 

9

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

	
  (I) or (we) assign
  and transfer this Note to:

  	
   

  
	
   

  	
  (Insert
  assignee’ legal name)

  

 

	
   

  
	
  (Insert assignee’s soc.
  sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Print or type assignee’s
  name, address and zip code)

  

and
irrevocably appoint                                                                                                                                                                              to
transfer this Note on the books of the Issuers. The agent may substitute
another to act for him.

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  	
   

  
						

 

*
Participant in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note purchased by
the Issuers pursuant to Section 4.10 or 4.14 of the Indenture, check the
appropriate box below:

 

o Section 4.10    o Section 4.14

 

If you want to elect to have only part of this Note
purchased by the Issuers pursuant to Section 4.10 or Section 4.14 of
the Indenture, state the amount you elect to have purchased:

 

$             

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  
	
   

  	
  Tax
  Identification No.:

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  	
   

  
							

 

* Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the
Trustee).

 

11

 

SCHEDULE OF EXCHANGES OF INTERESTS IN
THE GLOBAL NOTE

 

The initial outstanding principal amount of this
Global Note is $100,000,000. The following exchanges of a part of this Global
Note for an interest in another Global Note or for a Definitive Note, or
exchanges of a part of another Global or Definitive Note for an interest in
this Global Note, have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount
  of

  decrease

  in Principal

  Amount

  	
   

  	
  Amount
  of

  increase

  in Principal

  Amount of this

  Global Note

  	
   

  	
  Principal

  Amount of

  this Global Note

  following such

  decrease or

  increase

  	
   

  	
  Signature
  of

  authorized

  officer

  of Trustee or

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

12

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