Document:

Exhibit 10.7

 

DJO INCORPORATED
DIRECTORS’

 

NONSTATUTORY STOCK
OPTION AGREEMENT

 

This DJO INCORPORATED DIRECTORS’ NONSTATUTORY STOCK
OPTION AGREEMENT (this “Agreement”), dated as of March [      ], 2008 (the “Effective
Date”), is made by and between DJO Incorporated, a Delaware corporation (the “Company”),
and [                        ]
(the “Optionee”).

 

WHEREAS, the Optionee serves as a member of the Company’s
Board of Directors (the “Board”); and

 

WHEREAS, the Company desires to grant the Optionee a nonqualified
stock option in recognition of the Optionee’s service to the Company and to
further align the Optionee’s interests with those of the Company’s
stockholders.

 

NOW THEREFORE, the parties to this Agreement hereby agree
as follows:

 

1.             Certain Definitions.  Capitalized terms used, but not otherwise
defined, in this Agreement will have the meanings given to such terms in the
Company’s 2007 Incentive Stock Plan (the “Plan”).  As used in this Agreement:

 

(a)           “Blackstone” means each of Blackstone Capital Partners V
L.P. a Cayman Islands limited partnership, Blackstone Family Investment
Partnership V L.P., a Cayman Islands limited partnership, Blackstone Family
Investment Partnership V-A L.P., a Cayman Islands limited partnership,
Blackstone Participation Partnership V L.P., a Cayman Islands limited
partnership and each of their respective Affiliates.

 

(b)           “Cause” shall mean the removal of the Optionee from the
Board in connection with (i) the Optionee’s indictment for, conviction of,
or plea of nolo contendere to, (A) a felony (other than traffic-related)
under the laws of the United States or any state thereof or any similar
criminal act in a jurisdiction outside the United States or (B) a crime
involving moral turpitude that could be injurious to the Company or its
reputation, or (ii) any act of fraud by the Optionee in the performance of
the Optionee’s duties.

 

(c)           “Change in Control” means (i) the sale or
disposition, in one or a series of related transactions, of all or
substantially all of the assets of the Company to any “person” or “group” (as
such terms are defined in Sections 13(d)(3) and 14(d)(2) of the Exchange
Act) other than a sale or disposition where Blackstone retains all or
substantially all of the assets of the Company, or (ii) any person or group,
other than Blackstone, is or becomes the ‘beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of
the total voting power of the voting stock of the Company, including by way of
merger, consolidation or otherwise (other than an offering of stock to the
general public through a registration statement filed with the Securities and
Exchange Commission); or (iii) the approval by the stockholders of the
Company of a plan of complete liquidation of the Company.

 

(d)           “Code” means the Internal Revenue Code of 1986, as
amended.

 

(e)           “Company” has the meaning specified in the introductory
paragraph of this Agreement or its successors; provided, that to the extent
that any class of equity securities of a member of the Company’s controlled
group becomes publicly traded on an established securities market, the term “Company”
shall be deemed to refer to such publicly traded entity.

 

 

(f)            “Compensation Committee” means the Executive Compensation
Committee of the Board.

 

(g)           “Disability” shall mean the Optionee is disabled as
determined under Section 409A(a)(2)(C) of the Code.

 

(h)           “Fair Market Value” has the meaning specified in the Plan,
except as expressly set forth herein.

 

(i)            “Option” has the meaning specified in Section 2 of
this Agreement.

 

(j)            “Option Price” has the meaning specified in Section 2
of this Agreement.

 

(k)           “Option Shares” has the meaning specified in Section 2
of this Agreement.

 

(l)            “Stockholders Agreement” shall mean that certain
stockholders agreement applicable to the Optionee, as amended from time to
time.

 

2.             Grant of Stock Option.  Subject to and upon the terms, conditions,
and restrictions set forth in this Agreement and in the Plan, the Company has
granted to the Optionee an option (the “Option”) to purchase [        ] shares of
the Company’s common stock (the “Option Shares”) at a price (the “Option Price”)
of $[        ]
per share, which is the Fair Market Value per share on the Effective Date.  The Option may be exercised from time to time
in accordance with the terms of this Agreement.

 

3.             Term of Option.  The term of the Option shall commence on the
Effective Date and, unless earlier terminated in accordance with Section 7
hereof, shall expire ten (10) years from the Effective Date.

 

4.             Right to Exercise.

 

(a)           Unless terminated as hereinafter provided, Option Shares
shall become vested and exercisable in accordance with the schedule set forth
immediately below, provided the Optionee continues serve as a member of the Board
as of each such date.

 

	
  Vesting Date

  	
   

  	
  Percentage of the Option Shares that Vest

  	
   

  
	
  1st
  Anniversary of the Effective Date

  	
   

  	
  33

  	
  %

  
	
  2nd
  Anniversary of the Effective Date

  	
   

  	
  33

  	
  %

  
	
  3rd
  Anniversary of the Effective Date

  	
   

  	
  34

  	
  %

  

 

(b)           Notwithstanding the
foregoing, the Option Shares shall become immediately exercisable upon the
occurrence of a Change in Control if the Optionee is a Board member on the date
of the consummation of such Change in Control.

 

(c)           The Optionee shall be entitled to the privileges of
ownership with respect to Option shares purchased and delivered to the Optionee
upon the exercise of all or part of this Option, subject to Section 8
hereof.

 

2

 

5.             Option Nontransferable.  The Optionee may not transfer or assign all
or any part of the Option other than by will or by the laws of descent and
distribution.  This Option may be
exercised, during the lifetime of the Optionee, only by the Optionee, or in the
event of the Optionee’s legal incapacity, by the Optionee’s guardian or legal
representative acting on behalf of the Optionee in a fiduciary capacity under
state law and court supervision. 
Notwithstanding anything herein to the contrary, the Optionee may
transfer or assign all or any part of the Option to “family members” (as
defined in the General Instructions to Form S-8 of the Securities Act of
1933) or trusts, partnerships or similar entities for the benefit of such
family members, for estate planning purposes or in connection with the
disposition of the Optionee’s estate.

 

6.             Notice of Exercise;
Payment.

 

(a)           To the extent then exercisable, the Option may be
exercised in whole or in part by written notice to the Company stating the
number of Option Shares for which the Option is being exercised and the
intended manner of payment.  The date of
such notice shall be the exercise date. 
Payment equal to the aggregate Option Price of the Option Shares being
purchased pursuant to an exercise of the Option must be tendered in full with
the notice of exercise to the Company in one or a combination of the following
methods as specified by the Optionee in the notice of exercise:  (i) cash in the form of currency or
check or by wire transfer as directed by the Company, (ii) solely following an IPO in Shares otherwise being traded on an
established securities market, through the surrender to
the Company of Shares owned by the Optionee for at least six months as valued
at their Fair Market Value on the date of exercise, (iii) through net
exercise, using Shares to be acquired upon exercise of the Option, such Shares
being valued at their Fair Market Value (which for such purpose shall have the
meaning set forth in the Stockholders Agreement) on the date of exercise, or (iv) through
such other form of consideration as is deemed acceptable by the Board.

 

(b)           As soon as practicable upon the Company’s receipt of the
Optionee’s notice of exercise and payment, the Company shall direct the due
issuance of the Option Shares so purchased.

 

(c)           As a further condition precedent to the exercise of this
Option in whole or in part, the Optionee shall comply with all regulations and
the requirements of any regulatory authority having control of, or supervision
over, the issuance of the shares of common
stock and in connection therewith shall execute any documents which the
Board shall in its sole discretion deem necessary or advisable.

 

7.             Termination of Agreement.  The Agreement and the Option granted hereby
shall terminate automatically and without further notice on the earliest of the
following dates:

 

(a)           One (1) year following the date that the Optionee is
no longer serving as a Board member as a result of the Optionee’s death or
Disability or, if earlier, the expiration date of the term of the Option;
provided, however, that it shall be a condition to the exercise of the Option
in the event of the Optionee’s death that the Person exercising the Option
shall (i) have agreed in a form satisfactory to the Company to be bound by
the provisions of this Agreement and the Stockholders Agreement and (ii) comply
with all regulations and the requirements of any regulatory authority having
control of, or supervision over, the issuance of the shares of common stock and in connection therewith shall execute any
documents which the Board shall in its sole discretion deem necessary or
advisable;

 

(b)           The date that the Optionee is removed from the Board by
the Company without Cause or resigns from the Board, upon which all unvested
Option Shares will be 

 

3

 

forfeited immediately and terminate and all
vested Option Shares shall remain exercisable until the lesser of (i) ninety
(90) calendar days following the Optionee’s date of removal or (ii) the
remaining term of the Option;

 

(c)           The date that the Optionee is removed from the Board by
the Company for Cause, upon which all vested and unvested Options will be
forfeited immediately and terminate; and

 

(d)           Ten (10) years from the Effective Date.

 

Notwithstanding the foregoing, upon the Optionee no
longer serving as a member of the Board for any reason other than the
termination of the Optionee’s service for Cause, if the last day to exercise
vested Options occurs after the date on which the Company’s common stock is
publicly traded on a national stock exchange and during a lock-up period or
securities law blackout period, the otherwise applicable post-service Option
exercise period shall continue, but not beyond the remaining term of the
Option, until thirty (30) calendar days after the first day when the Optionee
is no longer precluded from selling stock acquired upon exercise of the Option
for either of such reasons. 
Notwithstanding anything to the contrary herein, nothing herein shall
prohibit the Optionee from exercising his or her vested Options through net
exercise, using Shares to be acquired upon exercise of the Option, during any
lock-up or securities law blackout period to the extent not prohibited by law.

 

In the event that the Optionee no longer serves as a
Board member due to the circumstances described in Section 7(c) hereof,
this Agreement shall terminate at the time of such termination notwithstanding
any other provision of this Agreement and the Optionee’s Option will cease to
be exercisable to the extent exercisable as of such cessation of service and
will not be or become exercisable after such cessation of service.

 

8.             Stockholders Agreement.  The Optionee agrees that any Option Shares
that the Optionee receives pursuant to this Agreement or under the Plan are
subject to the terms and conditions set forth in the Stockholders Agreement.

 

9.             Dividend Equivalents.  Upon the payment of any ordinary or
extraordinary cash dividend (or similar distributions) to holders of Company
common stock, the Optionee will be credited with dividend equivalent rights
with respect to the Options as follows. 
Dividend equivalents relating to vested Options shall be paid to the
Optionee in cash at the same time dividends are paid to holders of Company
common stock.  Dividend equivalents
relating to unvested Options will be credited to a notional account maintained
on the books of the Company for the benefit of the Optionee, which account
shall not accrue interest.  The Optionee
will become vested in such account at the same time as the Options to which the
dividend equivalents relate vest and become exercisable, and such vested
amounts shall be payable in cash upon the applicable vesting date, and in no
event later than 21⁄2 months following the end of the calendar year in which the
applicable vesting date occurs.  Unvested
amounts held in such account shall be forfeited by the Optionee upon the date
the Optionee ceases to be a member of the Board; provided, however, that if
such cessation results in the continuation of unvested Options as provided in Section 7(a) above,
forfeiture of dividend equivalents shall be delayed until the 1st anniversary
of such cessation.

 

10.           Taxes and Withholding.  The Company or any Subsidiary may withhold,
or require the Optionee to remit to the Company or any Subsidiary, an amount
sufficient to satisfy federal, state, local or foreign taxes (including the
Optionee’s FICA obligation) in connection with any payment made or benefit
realized by the Optionee or other person under this Agreement 

 

4

 

or otherwise, and if the amounts available to
the Company or any Subsidiary for such withholding are insufficient, it shall
be a condition to the receipt of such payment or the realization of such
benefit that the Optionee or such other person make arrangements satisfactory
to the Company or any Subsidiary for payment of the balance of such taxes
required to be withheld.  The Optionee may elect to have such withholding obligation
satisfied by surrendering to the Company or any Subsidiary a portion of the Option Shares that are issued or
transferred to the Optionee upon the exercise of an Option (but only to the
extent of the minimum withholding required by law), and the Option Shares so
surrendered by the Optionee shall be credited against any such withholding
obligation at the Fair Market Value (which for such purpose
shall have the meaning set forth in the Stockholders Agreement) of such Shares on the date of such surrender.

 

11.           Compliance with Law.  The Company shall make reasonable efforts to
comply with all applicable federal and state securities laws; provided,
however, that notwithstanding any other provision of this Agreement, the Option
shall not be exercisable if the exercise thereof would result in a violation of
any such law.

 

12.           Adjustments.

 

(a)           The Board shall make or provide for such substitution or
adjustments in the number of Option Shares covered by this Option, in the
Option Price applicable to such Option, and in the kind of shares covered
thereby and/or such other equitable substitution or adjustments as the Board
may determine to prevent dilution or enlargement of the Optionee’s rights that
otherwise would result from (i) any stock dividend, extraordinary
cash-dividend, stock split, combination of shares, recapitalization, or other change
in the capital structure of the Company, (ii) any merger, consolidation,
spin-off, split-off, spin-out, split-up, reclassification, reorganization,
partial or complete liquidation, or other distribution of assets or issuance of
rights or warrants to purchase securities, or (iii) any other corporate
transaction or event having an effect similar to any of the foregoing.  In the case of a Change in Control, such
substitutions and adjustments include, without limitation, canceling any and
all Options in exchange for cash payments equal to the excess, if any, of the
value of the consideration paid to a shareholder of an Option Share over the
Option Price per share subject to such Option in connection with such an
adjustment event.

 

(b)           To the extent that any equity securities of any member of
the Company’s controlled group become publicly traded, at such time all Options
shall be exchanged, in a manner consistent with Sections 409A and 424 of the
Code, for options with the same intrinsic value in the publicly-traded entity,
and all Shares shall be exchanged for shares of common stock with the same
aggregate value of the publicly-traded entity.

 

13.           Relation to Other Benefits.  Any economic or other benefit to the Optionee
under this Agreement shall not be taken into account in determining any
benefits to which the Optionee may be entitled under any profit-sharing,
retirement or other benefit or compensation plan maintained by the Company or
any Subsidiary and shall not affect the amount of any life insurance coverage
available to any beneficiary under any life insurance plan covering employees
or nonemployee directors of the Company or any Subsidiary.

 

14.           Amendments.  Any amendment to the Plan shall be deemed to
be an amendment to this Agreement to the extent that the amendment is
applicable hereto.

 

15.           Severability.  If one or more of the provisions of this
Agreement is invalidated for any reason by a court of competent jurisdiction,
any provision so invalidated shall be deemed 

 

5

 

to be separable from the
other provisions hereof, and the remaining provisions hereof shall continue to
be valid and fully enforceable.

 

16.           Relation to Plan.  This Agreement is subject to the terms and
conditions of the Plan.  In the event of
any inconsistent provisions between this Agreement and the Plan, the Plan shall
govern.  The Board acting pursuant to the
Plan, as constituted from time to time, shall, except as expressly provided
otherwise herein, have the right to determine any questions which arise in
connection with the Option or its exercise.

 

17.           Successors and Assigns.  The provisions of this Agreement shall inure
to the benefit of, and be binding upon, the successors, administrators, heirs,
legal representatives and assigns of the Optionee, and the successors and
assigns of the Company.

 

18.           Governing Law.  The interpretation, performance, and
enforcement of this Agreement shall be governed by the laws of the State of New
York, without giving effect to the principles of conflict of laws thereof and
all parties, including their successors and assigns, consent to the
jurisdiction of the state and federal courts of New York.

 

19.           Prior Agreement.  As of the Effective Date, this Agreement
supersedes any and all prior and/or contemporaneous agreements, either oral or
in writing, between the parties hereto, or between either or both of the
parties hereto and the Company, with respect to the subject matter hereof.  Each party to this Agreement acknowledges
that no representations, inducements, promises, or other agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf of any
party, pertaining to the subject matter hereof, which are not embodied herein,
and that no prior and/or contemporaneous agreement, statement or promise
pertaining to the subject matter hereof that is not contained in this Agreement
shall be valid or binding on either party.

 

20.           Notices.  For all purposes of this Agreement, all
communications, including without limitation notices, consents, requests or
approvals, required or permitted to be given hereunder will be in writing and
will be deemed to have been duly given when hand delivered or dispatched by
electronic facsimile transmission (with receipt thereof confirmed), or five business
days after having been mailed by United States registered or certified mail,
return receipt requested, postage prepaid, or three business days after having
been sent by a nationally recognized overnight courier service such as Federal
Express, UPS, or Purolator, addressed to the Company (to the attention of the
Secretary of the Company) at its principal executive offices and to the
Optionee at his principal residence, or to such other address as any party may
have furnished to the other in writing and in accordance herewith, except that
notices of changes of address shall be effective only upon receipt.

 

21.           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same agreement.

 

6

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed on its behalf by its duly
authorized officer and the Optionee has executed this Agreement, as of the day
and year first above written.

 

 

	
   

  	
  DJO
  INCORPORATED:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DONALD
  ROBERTS

  
	
   

  	
  Executive
  Vice President, General Counsel and Secretary

  

 

 

I hereby agree to be bound
by the terms of the Plan, this Agreement and the Stockholder’s Agreement.  I hereby further agree that all the decisions
and determinations of the Board shall be final and binding.

 

 

	
   

  	
  OPTIONEE:Exhibit 10.8

 

NONSTATUTORY STOCK
OPTION AGREEMENT

 

(Replacement
Version)

 

This NONSTATUTORY STOCK OPTION AGREEMENT (this “Agreement”),
dated as of March [      ],
2008 (the “Effective Date”), is made by and between DJO Incorporated, a
Delaware corporation (the “Company”), and [                        ]
(the “Optionee”).

 

WHEREAS, Encore Medical Corporation, a predecessor of the
Company, maintained the Encore Medical Corporation 2006 Stock Incentive Plan
(the “Prior Plan”);

 

WHEREAS, pursuant to the certain Nonqualified Stock Option
Agreement, dated [November 3, 2006], by and between the Optionee and
Encore Medical Corporation (the “Prior Agreement”), the Optionee was granted an
option to purchase shares of the Company (the “Prior Option”), subject to the
terms of the Prior Plan; and

 

WHEREAS, in consideration of the Optionee agreeing to the
cancellation of the Prior Option and the waiver of any and all rights the
Optionee has pursuant to the Prior Agreement and the Prior Plan, the Company
desires to grant the Optionee an option to purchase the shares described in Section 2
of this Agreement on the terms described herein;

 

NOW THEREFORE, the parties to this Agreement hereby agree
as follows:

 

1.                                Certain
Definitions.  Capitalized
terms used, but not otherwise defined, in this Agreement will have the meanings
given to such terms in the Company’s 2007 Incentive Stock Plan (the “Plan”).  As used in this Agreement:

 

(a)             “Board” means the Board of Directors of the Company.

 

(b)            “Blackstone” means each of Blackstone Capital Partners V
L.P. a Cayman Islands limited partnership, Blackstone Family Investment
Partnership V L.P., a Cayman Islands limited partnership, Blackstone Family
Investment Partnership V-A L.P., a Cayman Islands limited partnership,
Blackstone Participation Partnership V L.P., a Cayman Islands limited
partnership and each of their respective Affiliates.

 

(c)             “Change in Control” means (i) the sale or
disposition, in one or a series of related transactions, of all or
substantially all of the assets of the Company to any “person” or “group” (as
such terms are defined in Sections 13(d)(3) and 14(d)(2) of the
Exchange Act) other than a sale or disposition where Blackstone retains all or
substantially all of the assets of the Company, or (ii) any person or group,
other than Blackstone, is or becomes the ‘beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of
the total voting power of the voting stock of the Company, including by way of
merger, consolidation or otherwise (other than an offering of stock to the
general public through a registration statement filed with the Securities and
Exchange Commission); or (iii) the approval by the stockholders of the
Company of a plan of complete liquidation of the Company.

 

(d)            “Code” means the Internal Revenue Code of 1986, as
amended.

 

(e)             “Company” has the meaning specified in the introductory
paragraph of this Agreement or its successors; provided, that to the extent
that any class of equity securities of a member of the Company’s controlled
group becomes publicly traded on an established securities market, the term “Company”
shall be deemed to refer to such publicly traded entity.

 

 

(f)            “Compensation Committee” means the Executive Compensation
Committee of the Board.

 

(g)           “Credit Agreement” means that certain Credit Agreement
dated November 20, 2007, by and between DJO Finance LLC (f/k/a ReAble
Therapeutics Finance LLC), DJO Holdings LLC (f/k/a ReAble Therapeutics Holdings
LLC), Credit Suisse and certain other lenders.

 

(h)           “Disability” shall mean the Optionee is disabled as
determined under Section 409A(a)(2)(C) of the Code.

 

(i)            “EBITDA” shall
mean, for any applicable period, “Consolidated EBITDA” as defined in the Credit
Agreement for such period, excluding forward cost savings as determined by the
Board.

 

(j)            “Fair Market Value” has the meaning specified in the
Plan, except as expressly set forth herein.

 

(k)           “First Performance-Based Tranche” has the meaning
specified in Section 2 of this Agreement.

 

(l)            “Free Cash Flow” shall mean, for any applicable period,
EBITDA (as defined above) for such period minus capital expenditures during
such period and increased or decreased, as the case may be, by the change in
Operating Working Capital during such period.

 

(m)          “Good Reason” shall mean a material reduction in the
Optionee’s compensation below the amount of compensation in effect on the date
of this Agreement which is not cured within thirty (30) days following the
Company’s or its subsidiary’s, as applicable, receipt of written notice from
such Optionee describing the event constituting Good Reason.

 

(n)           “Operating Working Capital” as of any date shall mean the
difference between current assets (excluding cash and investments, interest and
tax accounts) and current liabilities (excluding debt, interest and tax
accounts).  Accrued liabilities related
to restructuring charges added back for the purposes of computing EBITDA are
also excluded from current liabilities to compute Operating Working Capital.

 

(o)           “Option” has the meaning specified in Section 2 of
this Agreement.

 

(p)           “Option Price” has the meaning specified in Section 2
of this Agreement.

 

(q)           “Option Shares” has the meaning specified in Section 2
of this Agreement.

 

(r)            “Performance Period” shall mean the five-year period commencing January 1,
2008 and ending December 31, 2012.

 

(s)           “Second Performance-Based Tranche” has the meaning
specified in Section 2 of this Agreement.

 

(t)            “Stockholders Agreement” shall mean that certain
stockholders agreement applicable to the Optionee, as amended from time to
time.

 

(u)           “Termination for Cause” shall mean the termination by the
Company of Optionee’s employment with the Company as a result of (i) the
Optionee’s willful and continued 

 

2

 

failure to substantially perform Optionee’s
duties (other than any such failure resulting from the Optionee’s Disability or
any such failure subsequent to the Optionee being delivered notice of the
Company’s intent to terminate the Optionee’s employment without Cause), (ii) conviction
of, or a plea of nolo contendere to, (A) a felony (other than
traffic-related) under the laws of the United States or any state thereof or
any similar criminal act in a jurisdiction outside the United States or (B) a
crime involving moral turpitude that could be injurious to the Company or its
reputation, (iii) the Optionee’s willful malfeasance or willful misconduct
which is materially and demonstrably injurious to the Company, or (iv) any
act of fraud by the Optionee in the performance of the Optionee’s duties.

 

2.                                       Grant
of Stock Option.  Subject to
and upon the terms, conditions, and restrictions set forth in this Agreement
and in the Plan, the Company has granted to Optionee an option (the “Option”)
to purchase [        ]
shares of the Company’s common stock (the “Option Shares”) at a price (the “Option
Price”) of $[        ]
per share, which is the Fair Market Value per share on the Effective Date.  The Option may be exercised from time to time
in accordance with the terms of this Agreement. 
Subject to adjustment as hereinafter provided, (a) [        ]
of the Option Shares constitute the “Time-Based Tranche”, (b) [        ]
of the Option Shares constitute the First Performance-Based Tranche, (c) [        ]
of the Option Shares constitute the Second Performance-Based Tranche, and (d) [        ]
of the Option Shares constitute the “Prior Option Tranche” relating to the
vested time-based options from the Prior Option.

 

3.                                       Term
of Option.  The term of
the Option shall commence on the Effective Date and, unless earlier terminated
in accordance with Section 7 hereof, shall expire ten (10) years from
the Effective Date.

 

4.                                       Right
to Exercise.  Unless
terminated as hereinafter provided, the Option shall become exercisable only as
follows:

 

(a)          The Option Shares in the Time-Based Tranche shall become
vested and exercisable in accordance with the schedule set forth immediately
below, provided the Optionee remains in the continuous employ of the Company,
any Subsidiary or Affiliate as of each such date.

 

	
  Vesting Date

  	
   

  	
  Percentage of Time-Based Tranche Option

  Shares that Vest

  	
   

  
	
  December 31, 2008

  	
   

  	
  25

  	
  %

  
	
  December 31, 2009

  	
   

  	
  20

  	
  %

  
	
  December 31, 2010

  	
   

  	
  18.33

  	
  %

  
	
  December 31, 2011

  	
   

  	
  18.33

  	
  %

  
	
  December 31, 2012

  	
   

  	
  18.34

  	
  %

  

 

(b)          The Option Shares in the First Performance-Based Tranche
shall become vested and exercisable as of the date of the certification of the
satisfaction of each such Annual Performance Target in accordance with the
schedule set forth immediately below:

 

3

 

	
  Vesting Date if First Performance-Based

  Target is Satisfied

  	
   

  	
  Percentage of First Performance-Based

  Tranche Option Shares that Vest

  
	
  December 31, 2008

  	
   

  	
  25% times Performance
  Percentage

  
	
  December 31, 2009

  	
   

  	
  20% times Performance
  Percentage

  
	
  December 31, 2010

  	
   

  	
  18.33% times
  Performance Percentage

  
	
  December 31, 2011

  	
   

  	
  18.33% times
  Performance Percentage

  
	
  December 31, 2012

  	
   

  	
  18.33% times
  Performance Percentage

  

 

For purposes of the foregoing schedule, the
Performance Percentage is the weighted average of the EBITDA Factor, weighted
at seventy percent (70%), and the Free Cash Flow Factor, weighted at thirty
percent (30%), where the EBITDA Factor and Free Cash Flow Factor are determined
as follows:

 

(i) The EBITDA Factor.  The EBITDA Factor is determined in accordance
with the schedule set forth on Attachment A. 
If the actual EBITDA achieved is less than the EBITDA Base Case for the
applicable year set forth on Attachment A, then the EBITDA Factor is zero
percent (0%).  If the actual EBITDA
achieved is equal to or exceeds the EBITDA Base Case for the applicable year as
set forth on Attachment A, then the EBITDA Factor shall equal eighty percent
(80%) plus an additional percentage between zero percent (0%) and twenty percent
(20%) determined in linear proportion to the portion of the difference between
the EBITDA Base Case and the EBITDA Target that is actually achieved.  For example, for 2008 the EBITDA Base Case is
245 and the EBIDTA Target is 253.  If the
actual EBITDA achieved for 2008 was 249, then the EBITDA Factor would equal
eighty percent (80%) for achieving the EBITDA Base Case plus ten percent (10%)
because half of the difference between the EBITDA Base Case and the EBITDA
Target was actually achieved. 
Accordingly, the EBITDA Factor in this example would be ninety percent
(90%).

 

(ii) Free Cash Flow Factor.  The Free Cash Flow Factor is determined in
the same manner as the EBITDA Factor as described in Section (c)(i) above
using the Free Cash Flow Base Case and Free Cash Flow Target set forth on
Attachment A.

 

Any Option Shares in the First
Performance-Based Tranche which the Optionee does not earn the right to
exercise shall thereupon expire and terminate.

 

(c)           The Option Shares in the Second Performance-Based Tranche
shall become vested and exercisable as of the date of the certification of the
satisfaction of each such Annual Performance Target in accordance with the
schedule set forth immediately below:

 

	
  Vesting Date if Second Performance-

  Based Target is Satisfied

  	
   

  	
  Percentage of Second Performance-Based

  Tranche Option Shares that Vest

  
	
  December 31, 2008

  	
   

  	
  25% times
  Enhanced Performance Percentage

  
	
  December 31, 2009

  	
   

  	
  20% times
  Enhanced Performance Percentage

  

 

4

 

	
  December 31, 2010

  	
   

  	
  18.33% times
  Enhanced Performance Percentage

  
	
  December 31, 2011

  	
   

  	
  18.33% times
  Enhanced Performance Percentage

  
	
  December 31, 2012

  	
   

  	
  18.33% times
  Enhanced Performance Percentage

  

 

For purposes of the foregoing schedule, the
Enhanced Performance Percentage is the weighted average of the Enhanced EBITDA
Factor, weighted at seventy percent (70%), and the Enhanced Free Cash Flow
Factor, weighted at thirty percent (30%), where the Enhanced EBITDA Factor and
the Enhanced Free Cash Flow Factor are determined as follows:

 

(i) Enhanced EBITDA Factor.  The Enhanced EBITDA Factor is determined in
the same manner as the EBITDA Factor as described in Section (c)(i) above
using the Enhanced EBITDA Base Case and the Enhanced EBITDA Target set forth on
Attachment B.

 

(ii) Enhanced Free Cash Flow
Factor.  The Enhanced Free Cash Flow
Factor is determined in the same manner as the EBITDA Factor as described in Section (c)(i) above
using the Enhanced Free Cash Flow Base Case and the Enhanced Free Cash Flow
Target set forth on Attachment B.

 

Any Option Shares in the Second
Performance-Based Tranche which the Optionee does not earn the right to
exercise shall thereupon expire and terminate.

 

(d)           The
Option Shares in the Prior Option Tranche shall be fully vested and immediately
exercisable as of the Effective Date.

 

(e)           Notwithstanding
the foregoing, (i) the Option Shares of the Time-Based Tranche granted
hereby shall become immediately exercisable upon the occurrence of a Change in
Control if Optionee remains in the continuous employ of the Company or any
Subsidiary until the date of the consummation of such Change in Control, and (ii) the
Option Shares of the First Performance-Based Tranche and the Second
Performance-Based Tranche for the year in which such Change of Control is
consummated and for any subsequent Performance Periods shall become immediately
exercisable if the Optionee remains in the continuous employ of the Company or
any Subsidiary until the date of consummation of such Change in Control.

 

(f)            Notwithstanding anything
herein to the contrary, if the Optionee is on an approved leave of absence, as
provided in the last paragraph of Section 7 hereof, the Optionee will be
considered as still in continuous employ of the Company, a Subsidiary or an
Affiliate for purposes of this Plan.

 

(g)           The
Optionee shall be entitled to the privileges of ownership with respect to
Option shares purchased and delivered to Optionee upon the exercise of all or
part of this Option, subject to Section 8 hereof.

 

(h)           All
of the financial factors utilized as described above to establish the vesting
of the Option Shares shall be determined from the books and records of the
Company by the Chief Financial Officer of the Company and any such
determination that is reviewed and approved by the Board shall be final and
binding on Optionee for all purposes under this Agreement.

 

5

 

5.                                       Option
Nontransferable.  The
Optionee may not transfer or assign all or any part of the Option other than by
will or by the laws of descent and distribution.  This Option may be exercised, during the
lifetime of the Optionee, only by the Optionee, or in the event of the Optionee’s
legal incapacity, by the Optionee’s guardian or legal representative acting on
behalf of the Optionee in a fiduciary capacity under state law and court
supervision.  Notwithstanding anything
herein to the contrary, the Optionee may transfer or assign all or any part of
the Option to “family members” (as defined in the General Instructions to Form S-8
of the Securities Act of 1933) or trusts, partnerships or similar entities for
the benefit of such family members, for estate planning purposes or in
connection with the disposition of Optionee’s estate.

 

6.                                       Notice
of Exercise; Payment.

 

(a)           To the extent then exercisable, the Option may be
exercised in whole or in part by written notice to the Company stating the
number of Option Shares for which the Option is being exercised and the
intended manner of payment.  The date of
such notice shall be the exercise date. 
Payment equal to the aggregate Option Price of the Option Shares being
purchased pursuant to an exercise of the Option must be tendered in full with
the notice of exercise to the Company in one or a combination of the following
methods as specified by the Optionee in the notice of exercise:  (i) cash in the form of currency or
check or by wire transfer as directed by the Company, (ii) solely following an IPO in Shares otherwise being traded on an
established securities market, through the surrender to
the Company of Shares owned by the Optionee for at least six months as valued
at their Fair Market Value on the date of exercise, (iii) through net
exercise, using Shares to be acquired upon exercise of the Option, such Shares
being valued at their Fair Market Value (which for such purpose shall have the
meaning set forth in the Stockholders Agreement) on the date of exercise, or (iv) through
such other form of consideration as is deemed acceptable by the Board.

 

(b)           As soon as practicable upon the Company’s receipt of the
Optionee’s notice of exercise and payment, the Company shall direct the due
issuance of the Option Shares so purchased.

 

(c)           As a further condition precedent to the exercise of this
Option in whole or in part, the Optionee shall comply with all regulations and
the requirements of any regulatory authority having control of, or supervision
over, the issuance of the shares of common
stock and in connection therewith shall execute any documents which the
Board shall in its sole discretion deem necessary or advisable.

 

7.                                       Termination
of Agreement.  The
Agreement and the Option granted hereby shall terminate automatically and
without further notice on the earliest of the following dates:

 

(a)          After the Optionee’s termination due to the Optionee’s
death or Disability, (i) all unvested Time-Based Options will be forfeited
immediately and terminate and (ii) all vested Options from any Tranche
shall remain exercisable until the lesser of (i) one (1) year
following the Optionee’s date of termination or (ii) the remaining term of
the Option; provided, however, that it shall be a condition to the exercise of
the Option in the event of the Optionee’s death that the Person exercising the
Option shall (i) have agreed in a form satisfactory to the Company to be
bound by the provisions of this Agreement and the Stockholders Agreement and (ii) comply
with all regulations and the requirements of any regulatory authority having
control of, or supervision over, the issuance of the shares of common stock and in connection therewith shall execute any
documents which the Board shall in its sole discretion deem necessary or
advisable.  Unvested Options from the
First and Second Performance-Based Tranches shall remain outstanding for the
twelve (12) month period following the date of such termination by 

 

6

 

reason of death or Disability.  To the extent applicable performance targets
are achieved, or a Change in Control occurs, within such twelve (12) month
period following the date of termination due to the Optionee’s death or
Disability (each, a “Post-Termination Vesting Event”), the appropriate number
of Options will vest as of such Post-Termination Vesting Event, and remain
exercisable for twelve (12) months following such Post-Termination Vesting
Event (but not beyond the remaining term of the Option).  On the twelve (12) month anniversary of the
date of termination of employment by reason of death or Disability, all remaining
unvested options from the First and Second Performance-Based Tranches will be
forfeited;

 

(b)           After the Optionee’s termination by the Company without
Cause or by the Optionee for Good Reason, all unvested Time-Based Options will
be forfeited immediately and terminate and all vested Options from any Tranche
shall remain exercisable until the lesser of (i) ninety (90) calendar days
following the Optionee’s date of termination or (ii) the remaining term of
the Option.  Unvested options from the
First and Second Performance-Based Tranches shall remain outstanding for the
twelve (12) month period following the date of such termination by reason of
termination by the Company without Cause or by the Optionee for Good
Reason.  To the extent a Post-Termination
Vesting Event occurs within such twelve (12) month period, the appropriate
number of Options will vest as of such Post-Termination Vesting Event, and
remain exercisable for ninety (90) calendar days following such
Post-Termination Vesting Event (but not beyond the remaining term of the
Option).  On the twelve (12) month
anniversary of the date of termination of employment by reason of termination
by the Company without Cause or by the Executive with Good Reason, all
remaining unvested options from the First and Second Performance-Based Tranches
will be forfeited;

 

(c)           The date of the Optionee’s Termination for Cause, upon
which all vested and unvested Options will be forfeited immediately and
terminate;

 

(d)           After the Optionee’s termination without Good Reason, all
unvested options will be forfeited immediately and terminate and all vested
Options from any Tranche shall remain exercisable until the lesser of (i) ninety
(90) calendar days following the Optionee’s date of termination or (ii) the
remaining term of the Option; or

 

(e)           Ten (10) years from the Effective Date.

 

Notwithstanding the foregoing, in all termination
events other than a termination of the Optionee’s employment for Cause, if the
last day to exercise vested Options occurs after the date on which the Company’s
common stock is publicly traded on a national stock exchange and during a
lock-up period or securities law blackout period, the otherwise applicable
post-termination Option exercise period shall continue, but not beyond the
remaining term of the Option, until thirty (30) calendar days after the first
day when the terminating the Optionee is no longer precluded from selling stock
acquired upon exercise of Options for either of such reasons.  Notwithstanding anything to the contrary
herein, nothing herein shall prohibit the Optionee from exercising his or her
vested Options through net exercise, using Shares to be acquired upon exercise
of the Option, during any lock-up or securities law blackout period to the
extent not prohibited by law.

 

In the event that the Optionee’s employment is
terminated in the circumstances described in Section 7(c) hereof,
this Agreement shall terminate at the time of such termination notwithstanding
any other provision of this Agreement and the Optionee’s Option will cease to
be exercisable to the extent exercisable as of such termination and will not be
or become exercisable after such termination.

 

7

 

The Optionee shall be deemed to be an employee of
the Company or any Subsidiary if on a leave of absence approved in writing by
the Board or the Chief Executive Officer of the Company to the extent
consistent with Section 409A of the Code.

 

8.             Stockholders Agreement.  The Optionee agrees that any Option Shares
that the Optionee receives pursuant to this Agreement or under the Plan are
subject to the terms and conditions set forth in the Stockholders Agreement.

 

9.             No Employment Contract.  Nothing contained in this Agreement shall (a) confer
upon the Optionee any right to be employed by or remain employed by the Company
or any Subsidiary, or (b) limit or affect in any manner the right of the
Company or any Subsidiary to terminate the employment or adjust the
compensation of the Optionee.

 

10.           Dividend Equivalents.  Upon the payment of any ordinary or
extraordinary cash dividend (or similar distributions) to holders of Company
common stock, the Optionee will be credited with dividend equivalent rights
with respect to the Options as follows. 
Dividend equivalents relating to vested Options shall be paid to the
Optionee in cash at the same time dividends are paid to holders of Company
common stock.  Dividend equivalents
relating to unvested Options will be credited to a notional account maintained
on the books of the Company for the benefit of the Optionee, which account
shall not accrue interest.  The Optionee
will become vested in such account at the same time as the Options to which the
dividend equivalents relate vest and become exercisable, and such vested
amounts shall be payable in cash upon the applicable vesting date, and in no
event later than 21⁄2 months following the end of the calendar year in which the
applicable vesting date occurs.  Unvested
amounts held in such account shall be forfeited by the Optionee upon the date
of any termination of employment; provided, however, that if such termination
results in the continuation of unvested Options from the First and Second
Performance-Based Tranches, as provided in Sections 7(a) and 7(b), above,
forfeiture of dividend equivalents shall be delayed until the twelve (12) month
anniversary of such termination, and to the extent that any Options vest during
such twelve (12) month period, such related dividend equivalents shall also
vest and be paid to the Optionee in cash on the twelve (12) month anniversary
of such termination or, if the Options are forfeited, such related dividend
equivalents shall also be forfeited.

 

11.           Taxes and Withholding.  The Company or any Subsidiary may withhold,
or require the Optionee to remit to the Company or any Subsidiary, an amount sufficient
to satisfy federal, state, local or foreign taxes (including the Optionee’s
FICA obligation) in connection with any payment made or benefit realized by the
Optionee or other person under this Agreement or otherwise, and if the amounts
available to the Company or any Subsidiary for such withholding are
insufficient, it shall be a condition to the receipt of such payment or the
realization of such benefit that Optionee or such other person make
arrangements satisfactory to the Company or any Subsidiary for payment of the
balance of such taxes required to be withheld. 
The Optionee
may elect to have such withholding obligation satisfied by surrendering to the
Company or any Subsidiary a portion of the Option Shares that are issued or transferred to the
Optionee upon the exercise of an Option (but only to the extent of the minimum
withholding required by law), and the Option Shares so surrendered by Optionee
shall be credited against any such withholding obligation at the Fair Market
Value (which for such purpose shall have the meaning set forth in the
Stockholders Agreement) of
such Shares on the date of such surrender.

 

12.           Compliance with Law.  The Company shall make reasonable efforts to
comply with all applicable federal and state securities laws; provided,
however, that notwithstanding any other provision of this Agreement, the Option
shall not be exercisable if the exercise thereof would result in a violation of
any such law.

 

8

 

13.           Adjustments.

 

(a)           The Board shall make or provide for such substitution or
adjustments in the number of Option Shares covered by this Option, in the
Option Price applicable to such Option, and in the kind of shares covered
thereby and/or such other equitable substitution or adjustments as the Board
may determine to prevent dilution or enlargement of the Optionee’s rights that
otherwise would result from (i) any stock dividend, extraordinary
cash-dividend, stock split, combination of shares, recapitalization, or other
change in the capital structure of the Company, (ii) any merger,
consolidation, spin-off, split-off, spin-out, split-up, reclassification,
reorganization, partial or complete liquidation, or other distribution of
assets or issuance of rights or warrants to purchase securities, or (iii) any
other corporate transaction or event having an effect similar to any of the
foregoing.  In the case of a Change in
Control, such substitutions and adjustments include, without limitation,
canceling any and all Options in exchange for cash payments equal to the
excess, if any, of the value of the consideration paid to a shareholder of an
Option Share over the Option Price per share subject to such Option in
connection with such an adjustment event.

 

(b)          To the extent that any equity securities of any member of
the Company’s controlled group become publicly traded, at such time all Options
shall be exchanged, in a manner consistent with Sections 409A and 424 of the
Code, for options with the same intrinsic value in the publicly-traded entity,
and all Shares shall be exchanged for shares of common stock with the same
aggregate value of the publicly-traded entity.

 

14.           Relation to Other Benefits.  Any economic or other benefit to Optionee
under this Agreement shall not be taken into account in determining any
benefits to which Optionee may be entitled under any profit-sharing, retirement
or other benefit or compensation plan maintained by the Company or any
Subsidiary and shall not affect the amount of any life insurance coverage available
to any beneficiary under any life insurance plan covering employees of the
Company or any Subsidiary.

 

15.           Amendments.  Any amendment to the Plan shall be deemed to
be an amendment to this Agreement to the extent that the amendment is
applicable hereto.

 

16.           Severability.  If one or more of the provisions of this
Agreement is invalidated for any reason by a court of competent jurisdiction,
any provision so invalidated shall be deemed to be separable from the other
provisions hereof, and the remaining provisions hereof shall continue to be
valid and fully enforceable.

 

17.           Relation to Plan.  This Agreement is subject to the terms and
conditions of the Plan.  In the event of
any inconsistent provisions between this Agreement and the Plan, the Plan shall
govern.  The Board acting pursuant to the
Plan, as constituted from time to time, shall, except as expressly provided
otherwise herein, have the right to determine any questions which arise in
connection with the Option or its exercise.

 

18.           Successors and Assigns.  The provisions of this Agreement shall inure
to the benefit of, and be binding upon, the successors, administrators, heirs,
legal representatives and assigns of Optionee, and the successors and assigns
of the Company.

 

19.           Governing Law.  The interpretation, performance, and
enforcement of this Agreement shall be governed by the laws of the State of New
York, without giving effect to the principles of conflict of laws thereof and
all parties, including their successors and assigns, consent to the jurisdiction
of the state and federal courts of New York.

 

9

 

20.           Prior Agreement.  As of the Effective Date, this Agreement
supersedes any and all prior and/or contemporaneous agreements, either oral or
in writing, between the parties hereto, or between either or both of the
parties hereto and the Company, with respect to the subject matter hereof,
including but not limited to the Prior Grant. 
Each party to this Agreement acknowledges that no representations,
inducements, promises, or other agreements, orally or otherwise, have been made
by any party, or anyone acting on behalf of any party, pertaining to the
subject matter hereof, which are not embodied herein, and that no prior and/or
contemporaneous agreement, statement or promise pertaining to the subject
matter hereof that is not contained in this Agreement shall be valid or binding
on either party.

 

21.           Notices.  For all purposes of this Agreement, all
communications, including without limitation notices, consents, requests or
approvals, required or permitted to be given hereunder will be in writing and
will be deemed to have been duly given when hand delivered or dispatched by
electronic facsimile transmission (with receipt thereof confirmed), or five business
days after having been mailed by United States registered or certified mail,
return receipt requested, postage prepaid, or three business days after having
been sent by a nationally recognized overnight courier service such as Federal
Express, UPS, or Purolator, addressed to the Company (to the attention of the
Secretary of the Company) at its principal executive offices and to Optionee at
his principal residence, or to such other address as any party may have
furnished to the other in writing and in accordance herewith, except that
notices of changes of address shall be effective only upon receipt.

 

22.           Cancellation of Prior
Option.  By executing this
Agreement, the Optionee agrees to the cancellation of the Prior Option and
waives any and all rights the Optionee has pursuant to the Prior Agreement and
the Prior Plan.  The Optionee
understands  and acknowledges that  such cancellation and waiver is required as a
condition precedent to the Optionee’s receipt of the Option and any additional
options to purchase shares in the Company at any time in the future.

 

23.           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same agreement.

 

10

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed on its behalf by its duly
authorized officer and the Optionee has executed this Agreement, as of the day
and year first above written.

 

 

	
   

  	
  DJO
  INCORPORATED:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DONALD
  ROBERTS

  
	
   

  	
  Executive
  Vice President, General Counsel and Secretary

  

 

 

I hereby agree to be bound
by the terms of the Plan, this Agreement and the Stockholder’s Agreement.  I hereby further agree that all the decisions
and determinations of the Board shall be final and binding.  I understand that by
signing below, I am agreeing to the cancellation of the Prior Option and I am
waiving any and all rights that I have pursuant to the Prior Agreement and the
Prior Plan.

 

 

	
   

  	
  OPTIONEE:

  
	
   

  	
   

  
	
   

  	
   

  

 

 

[Signature Page to Option Agreement]

 

 

ATTACHMENT A

 

First Performance-Based Tranche

 

In U.S.
$mm

 

	
   

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  	
  2012

  	
   

  
	
  EBITDA Target

  	
   

  	
  $

  	
  253.0

  	
   

  	
  $

  	
  297.7

  	
   

  	
  $

  	
  347.3

  	
   

  	
  $

  	
  381.9

  	
   

  	
  $

  	
  419.2

  	
   

  
	
  EBITDA Base Case

  	
   

  	
  $

  	
  245.0

  	
   

  	
  $

  	
  281.9

  	
   

  	
  $

  	
  320.1

  	
   

  	
  $

  	
  345.6

  	
   

  	
  $

  	
  371.6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Free Cash Flow Target

  	
   

  	
  $

  	
  214.1

  	
   

  	
  $

  	
  239.3

  	
   

  	
  $

  	
  289.5

  	
   

  	
  $

  	
  320.4

  	
   

  	
  $

  	
  353.1

  	
   

  
	
  Free Cash Flow Base Case

  	
   

  	
  $

  	
  202.2

  	
   

  	
  $

  	
  217.7

  	
   

  	
  $

  	
  256.5

  	
   

  	
  $

  	
  277.9

  	
   

  	
  $

  	
  298.9

  	
   

  

 

 

ATTACHMENT B

 

Second Performance-Based Tranche

 

In U.S.
$mm

 

	
   

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  	
  2012

  	
   

  
	
  Enhanced EBITDA Target

  	
   

  	
  $

  	
  278.3

  	
   

  	
  $

  	
  327.5

  	
   

  	
  $

  	
  382.0

  	
   

  	
  $

  	
  420.1

  	
   

  	
  $

  	
  461.1

  	
   

  
	
  Enhanced EBITDA Base Case

  	
   

  	
  $

  	
  267.2

  	
   

  	
  $

  	
  314.4

  	
   

  	
  $

  	
  366.7

  	
   

  	
  $

  	
  403.3

  	
   

  	
  $

  	
  442.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Enhanced Free Cash Flow
  Target

  	
   

  	
  $

  	
  243.0

  	
   

  	
  $

  	
  274.4

  	
   

  	
  $

  	
  329.5

  	
   

  	
  $

  	
  364.2

  	
   

  	
  $

  	
  401.1

  	
   

  
	
  Enhanced Free Cash Flow
  Base Case

  	
   

  	
  $

  	
  230.4

  	
   

  	
  $

  	
  259.2

  	
   

  	
  $

  	
  312.1

  	
   

  	
  $

  	
  345.1

  	
   

  	
  $

  	
  380.2

  	
   

  

 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]