Document:

Exhibit 4.12

EXECUTION COPY

(Bilateral
Form)      (ISDA Agreements Subject to New York Law Only)

ISDAâ

International
Swaps and Derivatives Association, Inc.

CREDIT SUPPORT ANNEX

to the Schedule to
the Master Agreement

dated as of September 12, 2007

between

	
  ABN AMRO BANK N.V.

  	
  

  

  and

  	
  CNH
  EQUIPMENT TRUST

  2007-B, a statutory trust

  organized under the laws of

  Delaware

  
	
   

  	
   

  	
   

  
	
  (“Party A”)

  	
   

  	
  (“Party B”)

  

 

Paragraph 13. 
Elections and Variables

(a)                                  Security
Interest for “Obligations”.

The
term “Obligations” as used in this Annex
includes the following additional obligations: None.

(b)                                 Credit
Support Obligations.

(i)                               Delivery
Amount, Return Amount and Credit Support Amount.

(A)                              “Delivery Amount” has the
meaning specified in Paragraph 3(a), except that the words “upon a demand made
by the Secured Party on or promptly following a Valuation Date” shall be
deleted and replaced by the words “on each Valuation Date;” provided,
that the Delivery Amount shall be calculated, with respect to collateral posting
required by each Rating Agency, by using (i) such Rating Agency’s Valuation
Percentages as provided below to determine Value and (ii) the Credit Support
Amount related to such Rating Agency. 
The Delivery Amount shall be the greatest of such calculated amounts.

(B)                                “Return Amount” has the meaning specified in Paragraph 3(b); provided, that the Return
Amount shall be calculated, with respect to collateral posting required by each
Rating Agency, by using (i) such Rating Agency’s Valuation Percentages as provided
below to determine Value and (ii) the Credit Support Amount related to such
Rating Agency.  The Return Amount shall
be the least of such calculated amounts.

(C)                                “Credit Support Amount” has
the meaning specified in Paragraph 13(j)(iv).

 1
 

(ii)                            Eligible Credit
Support.  The following Valuation Percentages(1) shall apply to Eligible Collateral
with respect to Party A; provided, however, that all Eligible
Collateral shall be denominated in United States Dollars.

	
  Collateral

  	
   

  	
  S&P Valuation

  Percentage for

  Eligible

  Counterparties

  	
   

  	
  S&P Valuation

  Percentage for

  Ineligible

  Counterparties

  	
   

  	
  Fitch Valuation

  Percentage

  	
   

  	
  Moody’s

  First Trigger

  Valuation

  Percentage

  	
   

  	
  Moody’s

  Second Trigger

  Valuation

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash

  	
   

  	
  100

  	
  %

  	
  80

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate negotiable
  debt obligations issued by the U.S. Treasury Department having a remaining
  maturity on such date of not more than one year

  	
   

  	
  98.0

  	
  %

  	
  78.4

  	
  %

  	
  97.5

  	
  %

  	
  100

  	
  %

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate negotiable
  debt obligations issued by the U.S. Treasury Department having a remaining
  maturity on such date of not more than five years

  	
   

  	
  98.0

  	
  %

  	
  78.4

  	
  %

  	
  91.5

  	
  %

  	
  100

  	
  %

  	
  97

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate negotiable
  debt obligations issued by the U.S. Treasury Department having a remaining
  maturity on such date of more than one year but not more than ten years

  	
   

  	
  92.6

  	
  %

  	
  74.1

  	
  %

  	
  86.3

  	
  %

  	
  100

  	
  %

  	
  94

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate negotiable
  debt obligations issued by the U.S. Treasury Department having a remaining
  maturity on such date of greater than or equal to five years but less than or
  equal to ten years

  	
   

  	
  92.6

  	
  %

  	
  74.1

  	
  %

  	
  86.3

  	
  %

  	
  100

  	
  %

  	
  94

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate negotiable
  debt obligations issued by the U.S. Treasury Department having a remaining
  maturity on such date of more than ten years

  	
   

  	
  84.6

  	
  %

  	
  67.7

  	
  %

  	
  79

  	
  %

  	
  100

  	
  %

  	
  87

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate U.S. Agency
  Debentures having a remaining maturity on such date of not more than one year

  	
   

  	
  98.0

  	
  %

  	
  78.4

  	
  %

  	
   

  	
  (2)

  	
  100

  	
  %

  	
  99

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate and
  floating-rate U.S. Agency Debentures having a remaining maturity on such date
  of not more than five years

  	
   

  	
  98.0

  	
  %

  	
  78.4

  	
  %

  	
   

  	
  (3)

  	
  100

  	
  %

  	
  96

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate U.S. Agency
  Debentures having a remaining maturity on such date of more than one year but
  not more than ten years

  	
   

  	
  92.6

  	
  %

  	
  74.1

  	
  %

  	
   

  	
  (4)

  	
  100

  	
  %

  	
  93

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate and floating-rate
  U.S. Agency Debentures having a remaining maturity on such date of greater
  than or equal to five years but less than or equal to ten years

  	
   

  	
  92.6

  	
  %

  	
  74.1

  	
  %

  	
   

  	
  (5)

  	
  100

  	
  %

  	
  93

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed-rate U.S. Agency Debentures having a remaining maturity on such
  date of more than ten years

  	
   

  	
  77.9

  	
  %

  	
  62.3

  	
  %

  	
   

  	
  (6)

  	
  100

  	
  %

  	
  86

  	
  %

  

 

(1) With respect to
collateral types not listed below, such assets will be subject to review by
each of S&P, Fitch and Moody’s.

(2)  Subject to review by Fitch.

(3)  Subject to review by Fitch.

(4)  Subject to review by Fitch.

(5)  Subject to
review by Fitch.

(6)  Subject to review by Fitch.

 2
 

(iii)                         Thresholds.

(A)                              “Independent Amount”   means with respect to Party A:  Zero

“Independent Amount” 
means with respect to Party B: 
Zero

(B)                                “Threshold” means with respect to Party A: infinity; provided
that the Threshold with respect to Party A shall be zero for so long as, with
respect to Moody’s and Fitch, no Relevant Entity has the Moody’s First Trigger
Required Ratings or a Collateralization Event is occurring, respectively, and
with respect to S&P, no Relevant Entity has the S&P First Trigger
Required Ratings, and (i) no Relevant Entity has had the Moody’s First Trigger
Required Ratings since this Annex was executed, or (ii) at least 30 Local
Business Days have elapsed since the last time a Relevant Entity had the Moody’s
First Trigger Required Ratings, or (iii) no Relevant Entity has met the Hedge
Counterparty Ratings Requirement since this Annex was executed, or (iv) at
least 30 calendar days have elapsed since the last time a Collateralization
Event occurred, or (v) a Ratings Event is occurring, or (vi) no Relevant Entity
has had the S&P First Trigger
Required Ratings since this Annex was executed or (vii) at least 10
Local Business Days have elapsed since the last time the Relevant Entity has
had the  S&P First Trigger Required Ratings.

 “Threshold” means with respect to Party B:  infinity.

(C)                                “Minimum Transfer Amount”
means with respect to Party A: USD $100,000; provided, however,
that if S&P is rating the Certificates and the aggregate Certificate
Principal Balances of the rated Certificates falls below $50,000,000, then the
Minimum Transfer Amount shall mean USD $50,000.

(D)                               “Minimum Transfer Amount”
means with respect to Party B: USD $100,000 (or if the Posted Collateral is
less than $100,000, the aggregate Value of Posted Collateral); provided,
however, that if S&P is rating the Certificates and the aggregate
Certificate Principal Balances of the rated Certificates falls below
$50,000,000, then the Minimum Transfer Amount shall mean USD $50,000 (or if the
Posted Collateral is less than $50,000, the aggregate Value of Posted
Collateral).

(E)                                 Rounding.  The Delivery Amount will be rounded up to the
nearest integral multiple of USD $10,000; provided, however, that
if S&P is rating the Certificates, the Delivery Amount will be rounded up
to the nearest integral multiple of $1,000. The Return Amount will be rounded
down to the nearest integral multiple
of USD $10,000; provided, however, that if S&P is rating the
Certificates, the Return Amount will be rounded down to the nearest integral
multiple of $1,000.

(iv)                        “Exposure” has the meaning
specified in Paragraph 12, except that (1) after the word “Agreement” the words
“(assuming, for this purpose only, that Part 5(q) of the Schedule is

 3
 

deleted)”
shall be inserted and (2) at the end of such definition, the words “with terms
substantially the same as those of this Agreement.”

(c)                                  Valuation and Timing.

(i)                               “Valuation Agent” means Party
A in all circumstances.

(ii)                            “Valuation Date”
means the first Local Business Day in each week.

(iii)                         “Valuation Time”
means the close of business in the city of the Valuation Agent on the Local
Business Day immediately preceding the Valuation Date or date of calculation,
as applicable, provided that the calculations of Value and Credit Support
Amount will, as far as practicable, be made as of approximately the same time
on the same date.

(iv)                        “Notification Time”
means 11:00 a.m., New York time, on a Local Business Day.

The
amount of “Value” with respect to Cash
in Paragraph 12 shall be the Amount thereof multiplied by the applicable
Valuation Percentage.

(d)                                 Conditions Precedent and Secured
Party’s Rights and Remedies.  None.

(e)                                  Substitution.

(i)                               “Substitution Date” has the
meaning specified in Paragraph 4(d)(ii).

(ii)                            Consent.  If specified here as applicable, then the
Pledgor must obtain the Secured Party’s consent for any substitution pursuant
to Paragraph 4(d):  Inapplicable.

(f)                                    Dispute Resolution.

(i)                               “Resolution Time”
means 1:00 p.m., New York time on the Local Business Day following the date on
which the notice is given that gives rise to a dispute under Paragraph 5.

(ii)                            Value.  For the purpose of Paragraphs 5(i)(C) and
5(ii), the Value of Eligible Credit Support or Posted Credit Support as of the
relevant Valuation Date or date of Transfer will be calculated as follows:

(A)                              with
respect to any Eligible Credit Support or Posted Credit Support comprising
securities (“Securities”)
the sum of (a)(x) the last bid price on such date for such Securities on the
principal national securities exchange on which such Securities are listed,
multiplied by the applicable Valuation Percentage; or (y) where any Securities
are not listed on a national securities exchange, the bid price for such
Securities quoted as at the close of business on such date by any principal
market maker (which shall not be and shall be independent from the Valuation
Agent) for such Securities chosen by the Valuation Agent, multiplied by the
applicable Valuation Percentage; or (z) if no such bid price is listed or
quoted for such date, the last bid price listed or quoted (as the case may be),
as of the day next preceding such date on which such prices were available,
multiplied by the applicable Valuation Percentage; plus (b) the accrued
interest where applicable on such Securities (except to the extent that such
interest shall have been paid to the Pledgor pursuant to Paragraph 5(c)(ii) or
included in the applicable price) as of such date; and

 4
 

(B)                                with
respect to any Cash, the face amount thereof multiplied by the applicable
Valuation Percentage.

(iii)                         Alternative.  The provisions of Paragraph 5 will apply.

(g)                                 Holding and Using Posted Collateral.

(i)                               Eligibility to Hold Posted Collateral;
Custodians:

A Custodian will be entitled to hold Posted
Collateral on behalf of Party B pursuant to Paragraph 6(b); provided
that:

(A)                              Posted Collateral may be held only in the
following jurisdiction: United States.

(B)                                The Custodian for Party B (A) is a commercial
bank or trust company which is unaffiliated with Party B and organized under
the laws of the United States or state thereof, having assets of at least $500
million and a long term debt or a deposit rating of at least (i) Baa2 from
Moody’s and (ii) A-1 from S&P, or is the Trustee, and a short term rating
from Fitch of at least “F1” and (B) shall hold all Eligible Credit Support in
an Eligible Account segregated from the Swap Account, as defined in the related
Trust Agreement.

Initially, the Custodian for
Cash and Securities for Party B is: The Trustee under the Trust Agreement, or
any successor trustee thereto.        If the Custodian is a party other than the
Trustee and ceases to meet the requirements set forth in clause (i)(2) above,
the Trustee shall replace such Custodian within 60 calendar days from the time
such Custodian failed to be so eligible.

(ii)                            Use of Posted Collateral.  The provisions of Paragraph 6(c)(i) will not
apply to Party B, but the provisions of Paragraph 6(c)(ii) will apply to Party
B.

(iii)                         Notice. If a party or its
Custodian fails to meet the criteria for eligibility to hold (or, in the case
of a party, to use) Posted Collateral set forth in this Paragraph 13(g), such
party shall promptly notify the other party of such ineligibility.

(h)                                 Distributions and Interest Amount.

(i)                               Interest Rate. The “Interest Rate” will be the
federal funds overnight rate as published by the Board of Governors of the
Federal Reserve System in H.15 (519) or its successor publication, or such
other rate as the parties may agree from time to time.

(ii)                            Transfer of Interest Amount.  The transfer of the Interest Amount will be
made on the second Local Business Day following the end of each calendar month
and on any other Local Business Day on which Posted Collateral in the form of
Cash is transferred to the Pledgor pursuant to Paragraph 3(b), in each case to
the extent that a Delivery Amount would not be created or increased by that transfer, provided that Party B shall not be obliged to so transfer
any Interest Amount unless and until it has earned and received such interest.

(iii)                         Alternative to Interest Amount.  The provisions of Paragraph 6(d)(ii) will
apply.

 5
 

(i)                                     Address for Transfers.

Party A: 
To be notified to Party B by Party A at the time of the request for the
transfer.

Party B: 
To be notified to Party A by Party B upon request by Party A.

(j)                                     Other Provisions.

(i)                               Events of Default.

Subclause (iii) shall be deleted from Paragraph 7.

(ii)                            Costs of Transfer on Exchange.

Notwithstanding
Paragraph 10, the Pledgor will be responsible for, and will reimburse the
Secured Party for, all transfer and other taxes and other costs involved in the
transfer of Eligible Credit Support either from the Pledgor to the Secured
Party or from the Secured Party to the Pledgor.

(iii)                         Cumulative Rights.

The rights, powers
and remedies of the Secured Party under this Annex shall be in addition to all
rights, powers and remedies given to the Secured Party by the Agreement or by
virtue of any statute or rule of law, all of which rights, powers and remedies
shall be cumulative and may be exercised successively or concurrently without
impairing the rights of the Secured Party in the Posted Credit Support created
pursuant to this Annex.

(iv)                        Ratings Criteria.

“Credit Support Amount” means (a) in respect
of S&P, the S&P Credit Support Amount, (b) in respect of Fitch, the
Fitch Credit Support Amount, and (c) in respect of Moody’s, the Moody’s First
Trigger Credit Support Amount, or the Moody’s Second Trigger Credit Support
Amount, as applicable.

With
respect to Fitch:

“Fitch Credit Support Amount” means, for any Valuation Date, the excess, if any,
of:

(I)                                    (A)
                           for any
Valuation Date (x) on which a Collateralization Event with respect to Fitch has
occurred and been continuing for at least 30 calendar days or (y) on which a
Ratings Event with respect to Fitch has occurred and is continuing, an amount
equal to the sum of (1) the aggregate Secured Party’s Exposure for such
Valuation Date with respect to all Transactions and (2) the aggregate of the
products of the Volatility Buffer for each Transaction and the Notional Amount
of each Transaction for the Calculation Period of each such Transaction which
includes such Valuation Date, or

(B)                                for
any other Valuation Date, zero, over

(II)                                the
Threshold for Party A for such Valuation Date.

“Volatility
Buffer” shall mean the percentage set forth in the
following table with respect to any Transaction (other than a Transaction
identified in the related Confirmation as a Timing Hedge):

 6
 

 

	
   

  	
   

  	
  Weighted Average Life (Years)

  	
   

  
	
  Notes’ Rating

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  >=15

  	
   

  
	
  USD Interest Rate Swaps

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AA- or Better

  	
   

  	
  0.8

  	
   

  	
  1.7

  	
   

  	
  2.5

  	
   

  	
  3.3

  	
   

  	
  4.0

  	
   

  	
  4.7

  	
   

  	
  5.3

  	
   

  	
  5.9

  	
   

  	
  6.5

  	
   

  	
  7.0

  	
   

  	
  7.5

  	
   

  	
  8.0

  	
   

  	
  8.5

  	
   

  	
  9.0

  	
   

  	
  9.5

  	
   

  
	
  A+/A

  	
   

  	
  0.6

  	
   

  	
  1.2

  	
   

  	
  1.8

  	
   

  	
  2.3

  	
   

  	
  2.8

  	
   

  	
  3.3

  	
   

  	
  3.8

  	
   

  	
  4.2

  	
   

  	
  4.6

  	
   

  	
  5.0

  	
   

  	
  5.3

  	
   

  	
  5.7

  	
   

  	
  6.0

  	
   

  	
  6.4

  	
   

  	
  6.7

  	
   

  
	
  A-/BBB+

  	
   

  	
  0.5

  	
   

  	
  1.0

  	
   

  	
  1.6

  	
   

  	
  2.0

  	
   

  	
  2.5

  	
   

  	
  2.9

  	
   

  	
  3.3

  	
   

  	
  3.6

  	
   

  	
  4.0

  	
   

  	
  4.3

  	
   

  	
  4.7

  	
   

  	
  5.0

  	
   

  	
  5.3

  	
   

  	
  5.6

  	
   

  	
  5.9

  	
   

  

 

With respect to Moody’s:

 “Moody’s First Trigger Credit Support
Amount” means, for any Valuation Date, the excess, if any, of

(I)                                    (A)                              for
any Valuation Date on which (I) a  Moody’s
First Trigger Failure Condition has occurred and has been continuing (x) for at
least 30 Local Business Days or (y) since this Annex was executed and (II) it
is not the case that a Moody’s Second Trigger Event has occurred and been
continuing for at least 30 Local Business Days, an amount equal to the greater
of (a) zero and (b) the sum of the Secured Party’s aggregate Exposure for all
Transactions and the aggregate of Moody’s Additional Collateralized Amounts for
each Transaction.

For the purposes of this definition, the “Moody’s Additional Collateralized
Amount” with respect to any Transaction shall mean:

[the lesser of (x) the product of the Moody’s First
Trigger DV01 Multiplier and DV01 for such Transaction and such Valuation Date
and (y) the product of Moody’s First Trigger Notional Amount Multiplier and the
Notional Amount for such Transaction for the Calculation Period which includes
such Valuation Date;](7)

[the product of the applicable Moody’s First
Trigger Factor set forth in Table 1 and the Notional Amount for such
Transaction for the Calculation Period which includes such Valuation Date;](8)
or

(B)                                for any other
Valuation Date, zero, over

(II)                                the Threshold for Party
A such Valuation Date.

“Moody’s First Trigger Failure Condition” means that no
Relevant Entity has credit ratings from Moody’s at least equal to the Moody’s
First Trigger Required Ratings.

“DV01” means, with respect to a Transaction and
any date of determination, the sum of the estimated change in the Secured Party’s
Exposure with respect to such Transaction that would result from a one basis
point change in the relevant swap curve on such date, as determined by the
Valuation Agent in good faith and in a commercially reasonable manner.  The Valuation Agent shall, upon request of
Party B, provide to Party B a statement showing in reasonable detail such
calculation.

(7) If Moody’s First Trigger Credit Support Amount is calculated using
DV01.

(8) If Moody’s First Trigger Credit Support Amount is calculated
without using DV01.

 7
 

“Moody’s First Trigger DV01 Multiplier” means 25.

“Moody’s First Trigger Value” means, on any date and with
respect to any Eligible Collateral other than Cash, the bid price obtained by
the Valuation Agent multiplied by the Moody’s First Trigger Valuation
Percentage for such Eligible Collateral set forth in Paragraph 13(b)(ii).

“Moody’s First Trigger Notional Amount Multiplier” means
4%.

 “Moody’s Second Trigger Credit
Support Amount” means, for any Valuation Date, the excess, if
any, of

(I)                                    (A)                              for
any Valuation Date on which it is the case that a Moody’s Second Trigger
Failure Condition has occurred and been continuing for at least 30 Local
Business Days, an amount equal to the greatest of (a) zero, (b) the aggregate
amount of the Next Payments for all Next Payment Dates (c) the sum of the
Secured Party’s aggregate Exposure and the aggregate of Moody’s Additional
Collateralized Amounts for each Transaction.

For the purposes of this definition, the “Moody’s Additional Collateralized
Amount” with respect to any Transaction shall mean:

if such Transaction is not a Transaction-Specific
Hedge,

[the lesser of (i) the product of the Moody’s
Second Trigger DV01 Multiplier and DV01 for such Transaction and such Valuation
Date and (ii) the product of the Moody’s Second Trigger Notional Amount
Multiplier and the Notional Amount for such Transaction for the Calculation
Period which includes such Valuation Date;](9)

[the product of the applicable Moody’s Second
Trigger Factor set forth in Table 2 and the Notional Amount for such
Transaction for the Calculation Period which includes such Valuation Date;](10)
or

if such Transaction is a Transaction-Specific
Hedge,

[the lesser of (i) the product of the Moody’s
Second Trigger Transaction-Specific Hedge DV01 Multiplier and DV01 for such
Transaction and such Valuation Date and (ii) the product of the Moody’s Second
Trigger Transaction-Specific Hedge Notional Amount Multiplier and the Notional
Amount for such Transaction for the Calculation Period which includes such
Valuation Date;](11)

(9) If Moody’s Second Trigger Credit Support Amount for a fixed
schedule swap is calculated using DV01.

(10) If Moody’s Second Trigger Credit Support Amount for a fixed
schedule swap is calculated without using DV01.

(11) If Moody’s Second Trigger Credit Support Amount for a
Transaction-Specific Hedge is calculated using DV01.

 

 8
 

 

[the product of the applicable Moody’s Second
Trigger Factor set forth in Table 3 and the Notional Amount for such Transaction
for the Calculation Period which includes such Valuation Date;](12) or

(B)                                for any other
Valuation Date, zero, over

(II)                                the Threshold for Party
A for such Valuation Date.

“Next Payment”  means, in
respect of each Next Payment Date, the greater of (i) the amount of any
payments due to be made by Party A under Section 2(a) of the Master Agreement
on such Next Payment Date less any payments due to be made by Party B under
Section 2(a) of the Master Agreement on such Next Payment Date (in each case,
after giving effect to any applicable netting under Section 2(c) of the Master
Agreement) and (ii) zero.

“Next Payment Date”
means each date on which the next scheduled payment under any Transaction is
due to be paid.

“Transaction-Specific Hedge” means any Transaction
that is an interest rate cap, interest rate floor or interest rate swaption, or
an interest rate swap if (x) the notional amount of the interest rate swap is “balance
guaranteed” or (y) the notional amount of the interest rate swap for any
Calculation Period otherwise is not a specific dollar amount that is fixed at
the inception of the Transaction.

“Moody’s Second Trigger Failure Condition” means that no
Relevant Entity has credit ratings from Moody’s at least equal to the Moody’s
Second Trigger Ratings Threshold.

“Moody’s Second Trigger DV01 Multiplier” means 60.

“Moody’s Second Trigger Transaction-Specific Hedge DV01 Multiplier”
means 75.

“Moody’s Second Trigger Transaction-Specific Hedge Notional Amount
Multiplier” means 11%.

“Moody’s Second Trigger Value” means, on any date and
with respect to any Eligible Collateral other than Cash, the bid price obtained
by the Valuation Agent multiplied by the Moody’s Second Trigger Valuation
Percentage for such Eligible Collateral set forth in Paragraph 13(b)(ii).

“Moody’s Second Trigger Notional Amount Multiplier” means
9%.

With
respect to S&P:

“S&P Credit Support Amount”
means, for any Valuation Date,
the excess, if any, of:

(I)                                    (A)                              for
any Valuation Date on which (x) an S&P FI Relevant Entity’s senior, unsecured
(i) short-term debt obligations are rated “A-2” by S&P or (ii) long-term
debt obligations are rated “A,” “A-” or “BBB+,”

(12) If Moody’s Second Trigger Credit Support Amount for a
Transaction-Specific Hedge is calculated without using DV01.

 

 9
 

if such S&P FI Relevant Entity does not have a
senior, unsecured short-term rating from S&P, an amount equal to the
aggregate Secured Party’s Exposure for such Valuation Date with respect to all
Transactions or (y) the Relevant Entity is an Ineligible Counterparty, an
amount equal to the product of 125% times the aggregate Secured Party’s
Exposure for such Valuation Date with respect to all Transactions, or

(B)                               for
any other Valuation Date, zero, over

(II)                                the
Threshold for Party A for such Valuation Date.

“S&P Valuation Percentage”
means, with respect to a Valuation Date and each item of Eligible Collateral:

(A)    
if the S&P Threshold for such Valuation Date is zero and it is not the case
that a S&P Trigger Failure Condition has occurred and been continuing for at
least 10 Local Business Days, the corresponding percentage for such Eligible
Collateral in the column headed “S&P Valuation Percentage for Eligible
Counterparties,” or

(B)    
if an S&P Trigger Failure Condition has occurred and been continuing for at
least 10 Local Business Days, the corresponding percentage for such Eligible
Collateral in the column headed “S&P Valuation Percentage for Ineligible
Counterparties.”

(v)                           Demands and Notices.

All
demands, specifications and notices under this Annex will be made pursuant to
the Notices Section of this Agreement, save that any demand, specification or
notice:

(A)                              shall
be given to or made at the following addresses:

If
to Party A:

As
set forth in Part 4(a) of the Schedule.

If
to Party B:

As
set forth in Part 4(a) of the Schedule.

or
at such other address as the relevant party may from time to time designate by
giving notice (in accordance with the terms of this subparagraph) to the other
party;

(B)                                shall
be deemed to be effective at the time such notice is actually received unless
such notice is received on a day which is not a Local Business Day or after the
Notification Time on any Local Business Day in which event such notice shall be
deemed to be effective on the next succeeding Local Business Day.

Pursuant to the Section 4.03 of the Trust Agreement, the monthly report
to Certificateholders shall be made available to Party A in the manner and form
specified therein.

 10
 

(vi)                        Agreement as to Single Secured Party and
Pledgor

Party A and Party
B agree that, notwithstanding anything to the contrary in the first sentence of
this Annex, Paragraph 1(b) or Paragraph 2 or the definitions in Paragraph 12,
except with respect to Party B’s obligations under Paragraph 3(b), (a) the term
“Secured Party” as used in this Annex means only Party B, (b) the term “Pledgor”
as used in this Annex means only Party A, (c) only Party A makes the pledge and
grant in Paragraph 2, the acknowledgement in the final sentence of Paragraph
8(a) and the representations in Paragraph 9 and (d) only Party A will be
required to make Transfers of Eligible Credit Support hereunder.  Party A and Party B further agree that,
notwithstanding anything to the contrary in the recital to this Annex or
Paragraph 7, this Annex will constitute a Credit Support Document only with
respect to Party A.

(vii)                     Trustee Capacity.

It is expressly
understood and agreed by the parties hereto that (i) this Annex is executed and
delivered by the Trustee not individually or personally but solely as
supplemental interest trustee of the Trust, in the exercise of the powers and
authority conferred and vested in it under the Trust Agreement, (ii) each of
the representations, undertakings and agreements herein made on the part of the
Trust is made and intended not as personal representations, undertakings and
agreements by the Trustee but is made and intended for the purpose of binding
only the Trust, (iii) nothing herein contained shall be construed as creating
any liability on the part of the Trustee, individually or personally, to perform
any covenant either expressed or implied contained herein, all such liability,
if any, being expressly waived by the parties hereto and by any Person claiming
by, through or under the parties hereto and (iv) under no circumstances shall
the Trustee be personally liable for the payment of any indebtedness or
expenses of the Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Trust under this
Annex or any other related documents as to all of which recourse shall be had
solely to the assets of the Trust in accordance with the terms of the Trust
Agreement; unless the Trustee was grossly negligent or acted with wilful
misconduct.

[Signature
page follows]

 11
 

IN
WITNESS WHEREOF, the parties have executed this document by
their duly authorized officers with effect from the date specified on the first
page hereof.

	
   

  	
   

  	
  CNH Equipment Trust 2007-B

  
	
   

  	
   

  	
   

  
	
  ABN
  AMRO BANK N.V.

  	
   

  	
  By:  Wilmington Trust Company, not in its
  individual

  capacity, but solely as Trustee under the Trust

  Agreement

  
	
  (Name
  of Party)

  	
   

  	
  (Name
  of Party)

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Frederick P. Engler

  	
   

  	
   

  	
  /s/ Dorri E. Wolhar

  	
   

  
	
  Name: Frederick P. Engler

  	
   

  	
  Name: Dorri E. Wolhar

  
	
  Title: Regional Manager Documentation North

  America

  	
   

  	
  Title: Financial Services Officer

  
	
  Date:

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Nancy Dziewinski

  	
   

  	
   

  	
   

  
	
  Name: Nancy Dziewinski

  	
   

  	
   

  
	
  Title: Vice President

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
						

 

 12
 

Table
1

Moody’s
First Trigger Factor

	
  Remaining

  Weighted Average Life 

  of Hedge in Years

  	
   

  	
  Weekly

  Collateral

  Posting

  	
   

  
	
  1 or less

  	
   

  	
  0.25

  	
  %

  
	
  More than 1 but
  not more than 2

  	
   

  	
  0.50

  	
  %

  
	
  More than 2 but
  not more than 3

  	
   

  	
  0.70

  	
  %

  
	
  More than 3 but
  not more than 4

  	
   

  	
  1.00

  	
  %

  
	
  More than 4 but
  not more than 5

  	
   

  	
  1.20

  	
  %

  
	
  More than 5 but
  not more than 6

  	
   

  	
  1.40

  	
  %

  
	
  More than 6 but
  not more than 7

  	
   

  	
  1.60

  	
  %

  
	
  More than 7 but
  not more than 8

  	
   

  	
  1.80

  	
  %

  
	
  More than 8 but
  not more than 9

  	
   

  	
  2.00

  	
  %

  
	
  More than 9 but
  not more than 10

  	
   

  	
  2.20

  	
  %

  
	
  More than 10 but
  not more than 11

  	
   

  	
  2.30

  	
  %

  
	
  More than 11 but
  not more than 12

  	
   

  	
  2.50

  	
  %

  
	
  More than 12 but
  not more than 13

  	
   

  	
  2.70

  	
  %

  
	
  More than 13 but
  not more than 14

  	
   

  	
  2.80

  	
  %

  
	
  More than 14 but
  not more than 15

  	
   

  	
  3.00

  	
  %

  
	
  More than 15 but
  not more than 16

  	
   

  	
  3.20

  	
  %

  
	
  More than 16 but
  not more than 17

  	
   

  	
  3.30

  	
  %

  
	
  More than 17 but
  not more than 18

  	
   

  	
  3.50

  	
  %

  
	
  More than 18 but
  not more than 19

  	
   

  	
  3.60

  	
  %

  
	
  More than 19 but
  not more than 20

  	
   

  	
  3.70

  	
  %

  
	
  More than 20 but
  not more than 21

  	
   

  	
  3.90

  	
  %

  
	
  More than 21 but
  not more than 22

  	
   

  	
  4.00

  	
  %

  
	
  More than 22 but
  not more than 23

  	
   

  	
  4.00

  	
  %

  
	
  More than 23 but
  not more than 24

  	
   

  	
  4.00

  	
  %

  
	
  More than 24 but
  not more than 25

  	
   

  	
  4.00

  	
  %

  
	
  More than 25 but
  not more than 26

  	
   

  	
  4.00

  	
  %

  
	
  More than 26 but
  not more than 27

  	
   

  	
  4.00

  	
  %

  
	
  More than 27 but
  not more than 28

  	
   

  	
  4.00

  	
  %

  
	
  More than 28 but
  not more than 29

  	
   

  	
  4.00

  	
  %

  
	
  More than 29

  	
   

  	
  4.00

  	
  %

  

 

 13
 

Table
2

Moody’s
Second Trigger Factor for Interest Rate Swaps with Fixed Notional Amounts

	
  Remaining

  Weighted Average Life 

  of Hedge in Years

  	
   

  	
  Weekly

  Collateral

  Posting

  	
   

  
	
  1 or less

  	
   

  	
  0.60

  	
  %

  
	
  More than 1 but
  not more than 2

  	
   

  	
  1.20

  	
  %

  
	
  More than 2 but
  not more than 3

  	
   

  	
  1.70

  	
  %

  
	
  More than 3 but
  not more than 4

  	
   

  	
  2.30

  	
  %

  
	
  More than 4 but
  not more than 5

  	
   

  	
  2.80

  	
  %

  
	
  More than 5 but
  not more than 6

  	
   

  	
  3.30

  	
  %

  
	
  More than 6 but
  not more than 7

  	
   

  	
  3.80

  	
  %

  
	
  More than 7 but
  not more than 8

  	
   

  	
  4.30

  	
  %

  
	
  More than 8 but
  not more than 9

  	
   

  	
  4.80

  	
  %

  
	
  More than 9 but
  not more than 10

  	
   

  	
  5.30

  	
  %

  
	
  More than 10 but
  not more than 11

  	
   

  	
  5.60

  	
  %

  
	
  More than 11 but
  not more than 12

  	
   

  	
  6.00

  	
  %

  
	
  More than 12 but
  not more than 13

  	
   

  	
  6.40

  	
  %

  
	
  More than 13 but
  not more than 14

  	
   

  	
  6.80

  	
  %

  
	
  More than 14 but
  not more than 15

  	
   

  	
  7.20

  	
  %

  
	
  More than 15 but
  not more than 16

  	
   

  	
  7.60

  	
  %

  
	
  More than 16 but
  not more than 17

  	
   

  	
  7.90

  	
  %

  
	
  More than 17 but
  not more than 18

  	
   

  	
  8.30

  	
  %

  
	
  More than 18 but
  not more than 19

  	
   

  	
  8.60

  	
  %

  
	
  More than 19 but
  not more than 20

  	
   

  	
  9.00

  	
  %

  
	
  More than 20 but
  not more than 21

  	
   

  	
  9.00

  	
  %

  
	
  More than 21 but
  not more than 22

  	
   

  	
  9.00

  	
  %

  
	
  More than 22 but
  not more than 23

  	
   

  	
  9.00

  	
  %

  
	
  More than 23 but
  not more than 24

  	
   

  	
  9.00

  	
  %

  
	
  More than 24 but
  not more than 25

  	
   

  	
  9.00

  	
  %

  
	
  More than 25 but
  not more than 26

  	
   

  	
  9.00

  	
  %

  
	
  More than 26 but
  not more than 27

  	
   

  	
  9.00

  	
  %

  
	
  More than 27 but
  not more than 28

  	
   

  	
  9.00

  	
  %

  
	
  More than 28 but
  not more than 29

  	
   

  	
  9.00

  	
  %

  
	
  More than 29

  	
   

  	
  9.00

  	
  %

  

 

 14Exhibit
10.1

CHANGE IN CONTROL SEVERANCE
AGREEMENT

(CEO VERSION)

This CHANGE IN CONTROL
SEVERANCE AGREEMENT (this “Agreement”) is entered into as of the       
day of             ,
2007 (the “Effective Date”), by and between DJO Incorporated, a Delaware
corporation (the “Company”),
and                    
(“Executive”).

W I T N E S S E T H

WHEREAS, the Company
considers the establishment and maintenance of a sound and vital management to
be essential to protecting and enhancing the best interests of the Company and
its stockholders; and

WHEREAS, the Company
recognizes that, as is the case with many publicly held corporations, the
possibility of a change in control may arise and that such possibility may
result in the departure or distraction of management personnel to the detriment
of the Company and its stockholders; and

WHEREAS, the Board of
Directors of the Company (the “Board”) has determined that it is in the
best interests of the Company and its stockholders to secure Executive’s
continued services and to ensure Executive’s continued dedication to his duties
in the event of any threat or occurrence of a Change in Control (as defined in
Section 1) of the Company.

NOW, THEREFORE, for and
in consideration of the premises and the mutual covenants and agreements herein
contained, the Company and Executive hereby agree as follows:

1.                                       Definitions.  As used in this Agreement, the following
terms shall have the respective meanings set forth below:

(a)                                  “Bonus Amount” means Executive’s
aggregate annual target bonus for the fiscal year of the Company in which
Executive’s Date of Termination occurs.

(b)                                 “Cause” means (i) the conviction
of Executive of, or plea of guilty or nolo  contendere by
Executive to, or an indictment of Executive alleging, a felony or misdemeanor involving
moral turpitude, (ii) the indictment of Executive for violation of the federal
securities laws, (iii) the willful misconduct or gross negligence by Executive
resulting in material harm to the Company, (iv) the willful breach by Executive
of Executive’s duties or responsibilities under this Agreement, (v) fraud,
embezzlement, theft or dishonesty by Executive against the Company or any
Subsidiary, or (vi) willful violation by Executive of a policy or procedure of
the Company or any Subsidiary resulting in material harm to the Company or any
Subsidiary.  For purpose of this
paragraph 1(b), no act or failure to act by Executive shall be considered “willful”
unless done or omitted to be done by Executive in bad faith and without
reasonable belief that Executive’s action or omission was in the best interests
of the Company or its affiliates.  Any
act, or failure to

act, based upon specific authority given
pursuant to a resolution duly adopted by the Board shall be conclusively
presumed to be done, or omitted to be done, by Executive in good faith and in
the best interests of the Company. 
Nothing herein shall prohibit the Company from retroactively determining
that Executive’s employment was terminated for Cause.

(c)                                  “Change in Control” means the
occurrence of any one of the following events:

(i)                                     individuals who,
on the Effective Date constitute the Board (the “Incumbent Directors”) cease for any reason within any
twenty-four (24) month period to constitute at least a majority of the Board
(or the  board of directors of any
successor to the Company), provided that any person becoming a director
subsequent to such date whose election or nomination for election was approved
by a vote of at least two-thirds of the Incumbent Directors then on the Board
(either by a specific vote or by approval of the proxy statement of the Company
in which such person is named as a nominee for director, without written
objection to such nomination) shall be an Incumbent Director; provided, however,
that no individual initially elected or nominated as a director of the Company
as a result of an actual or threatened election contest with respect to
directors or as a result of any other actual or threatened solicitation of
proxies by or on behalf of any person other than the Board (including by reason
of any agreement intended to avoid or settle such election contest or
solicitation of proxies) shall be deemed to be an Incumbent Director until
twenty-four (24) months after such election;

(ii)                                  any “person” (as such
term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)
and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or
becomes a “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing thirty-five percent (35%) or more of the combined voting power of
the Company’s then outstanding securities eligible to vote for the election of
the Board (the “Company Voting
Securities”); provided, however, that the event
described in this paragraph (ii) shall not be deemed to be a Change in
Control by virtue of any of the following acquisitions:  (A) by
the Company or any Subsidiary, (B) by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any Subsidiary, (C) by any
underwriter temporarily holding securities pursuant to an offering of such
securities, (D) pursuant to a Non-Qualifying Transaction, as defined in
paragraph (iii), or (E) by any person of Company Voting Securities from the
Company, if a majority of the Incumbent Directors approve in advance the
acquisition of beneficial ownership of thirty-five percent (35%) or more of
Company Voting Securities by such person;

(iii)                               the consummation of a
merger, consolidation, statutory share exchange or similar form of corporate
transaction involving the Company or any of its Subsidiaries that requires the
approval of the Company’s stockholders, whether for such transaction or the
issuance of securities in the transaction (a “Business  Combination”), unless
immediately following such Business Combination:  (A) more than fifty percent (50%) of the
total voting power of (x) the corporation resulting from such Business
Combination (the “Surviving  Corporation”), or (y) if applicable, the
ultimate parent corporation that directly or indirectly has beneficial
ownership of at least ninety percent 

 2
 

(90%) of the voting securities eligible to elect directors of the
Surviving Corporation (the “Parent  Corporation”), is
represented by Company Voting Securities that were outstanding immediately
prior to such Business Combination (or, if applicable, is represented by shares
into which such Company Voting Securities were converted pursuant to such
Business Combination), and such voting power among the holders thereof is in
substantially the same proportion as the voting power of such Company Voting
Securities among the holders thereof immediately prior to the Business
Combination, (B) no person (other than any employee benefit plan (or related
trust) sponsored or maintained by the Surviving Corporation or the Parent
Corporation), is or becomes the beneficial owner, directly or indirectly, of
thirty-five percent (35%) or more of the total voting power of the outstanding
voting securities eligible to elect directors of the Parent Corporation (or, if
there is no Parent Corporation, the Surviving Corporation) and (C) at
least a majority of the members of the board of directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation)
following the consummation of the Business Combination were Incumbent Directors
at the time of the Board’s approval of the execution of the initial agreement
providing for such Business Combination (any Business Combination which satisfies
all of the criteria specified in (A), (B) and (C) above shall be deemed to be a
“Non-Qualifying  Transaction”);

(iv)                              the stockholders of the
Company approve a plan of complete liquidation or dissolution of the Company or
the consummation of a sale of all or substantially all of the Company’s assets.

Notwithstanding the
foregoing, a Change in Control of the Company shall not be deemed to occur
solely because any person acquires beneficial ownership of more than
thirty-five percent (35%) of the Company Voting Securities as a result of the
acquisition of Company Voting Securities by the Company which reduces the
number of Company Voting Securities outstanding; provided, that
if after such acquisition by the Company such person becomes the beneficial
owner of additional Company Voting Securities that increases the percentage of
outstanding Company Voting Securities beneficially owned by such person, a
Change in Control of the Company shall then occur.

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

(e)                                  “Date of Termination” means (i)
the effective date on which Executive’s employment by the Company terminates as
specified in a prior written notice by the Company or Executive, as the case
may be, to the other, delivered pursuant to Section 11 or (ii) if Executive’s
employment by the Company terminates by reason of death, the date of death of
Executive.

(f)                                    “Disability” means termination of
Executive’s employment by the Company due to Executive’s inability to
substantially perform Executive’s duties and responsibilities, with or without
reasonable accommodation, for a period of one hundred eighty (180) days out of
any three-hundred and sixty-five (365) consecutive day period  as a result of Executive’s physical or mental
incapacity.

 3
 

(g)                                 “Good Reason” means, without
Executive’s express written consent, the occurrence of any of the following
events:

(i)                                  a
material diminution in Executive’s authority, duties or responsibilities; provided,
however, that Good Reason shall not be deemed to occur upon a change in
authority, duties or responsibilities that is solely and directly a result of
the Company no longer being a publicly traded entity and does not involve any
other event set forth in this paragraph;

(ii)                               a
material diminution in Executive’s base compensation, other than any reduction
that applies to substantially all executives of the Company on a proportional
basis;

(iii)                            a material change in the
geographic location at which Executive must perform his duties, except for
reasonably required travel on the Company’s or any successor’s or affiliate’s
business that is not materially greater than such travel requirements prior to
the date of this Agreement; or

(iv)                           any
other action or inaction that constitutes a material breach by the Company or
any successor of its obligations to Executive under this Agreement.

Executive
must provide written notice to the Company of the occurrence of any of the
foregoing events or conditions without Executive’s written consent within
ninety (90) days of the occurrence of such event.  The Company or any successor shall have a
period of thirty (30) days to cure such event or condition after receipt of
written notice of such event from Executive. 
Any voluntary termination of Executive’s employment for “Good Reason”
following such thirty (30) day cure period must occur no later than the date
that is six (6) months following the initial occurrence of one of the foregoing
events or conditions without Executive’s written consent and such voluntary
termination of Executive’s employment shall be treated as an involuntary
termination of employment.

(h)                 “Qualifying Termination” means a
termination of Executive’s employment (i) by the Company other than for Cause
or (ii) by Executive for Good Reason. 
Termination of Executive’s employment on account of death or Disability
shall not be treated as a Qualifying Termination.

(i)                      “Subsidiary” means any
corporation or other entity in which the Company has a direct or indirect
ownership interest of fifty percent (50%) or more of the total combined voting
power of the then outstanding securities or interests of such corporation or
other entity entitled to vote generally in the election of directors or in
which the Company has the right to receive fifty percent (50%) or more of the
distribution of profits or fifty percent (50%) of the assets or liquidation or
dissolution.

(j)                     “Termination Period” means the
period of time beginning with three (3) months prior to a Change in Control and
ending two (2) years following such Change in Control.

2.                                       Obligation
of Executive.  In the event of a
tender or exchange offer, proxy contest, or the execution of any agreement
which, if consummated, would constitute a Change in Control, Executive agrees
not to voluntarily leave the employ of the Company, other than as a 

 4
 

result of an event which would constitute Good Reason if a Change in
Control had occurred, until the Change in Control occurs or, if earlier, such
tender or exchange offer, proxy contest, or agreement is terminated or
abandoned.

3.                                       Term
of Agreement.  This Agreement shall
be effective on the date hereof and shall continue in effect until the Company
shall have given written notice of cancellation or amendment at least one (1)
year in advance; provided, that, notwithstanding the delivery of any such
notice, this Agreement shall continue in effect for a period of two (2) years
after a Change in Control, if such Change in Control shall have occurred during
the term of this Agreement. 
Notwithstanding anything in this Section to the contrary, this Agreement
shall terminate on the date that is three (3) months following the date
Executive or the Company terminates Executive’s employment if a Change in
Control has not occurred.

4.                               Payments
Upon Termination of Employment.

(a)                                  Qualifying
Termination.  If during the
Termination Period the employment of Executive shall terminate pursuant to a
Qualifying Termination, then the Company shall provide to Executive, as
consideration for the Release described in Section 4(g) below, the payments and
benefits set forth in paragraphs (b)(i), (b)(ii), (c), (d) and (e) of this
Section.

(b)                                 Qualifying
Termination - Cash Payments.  The
Company shall make a lump sum cash payment to Executive in the event of a
Qualifying Termination during the Termination Period of the following:

(i)                                     Within three (3)
business days following the Date of Termination, an amount equal to the sum of
(A) Executive’s base salary through the Date of Termination, (B) any bonus
amounts which have become payable, to the extent not theretofore paid, and (C)
unreimbursed business expenses incurred in accordance with Company policy and
any accrued vacation pay; and

(ii)                                  Within fifteen (15)
days following Executive’s satisfaction of the conditions of Section 4(g)
below, but in no event later than the date that is two and one-half (2 1⁄2)
months following the end of the calendar year in which the date of Executive’s
termination of employment (or, if such termination occurs within three (3)
months prior to the date of a Change in Control, the date of the Change in
Control) occurs, the Company shall make a lump sum cash payment to Executive of
the sum of the following:

(A)                              An amount equal to two
(2) times the Executive’s highest annual rate of base salary during the
12-month period immediately prior to Executive’s Date of Termination; plus

(B)                                An amount equal to
Executive’s Bonus Amount; plus

(C)                                An amount equal to a pro
rata portion of Executive’s Bonus Amount, determined by multiplying such
Bonus Amount by a fraction, the numerator of which is the number of days in the
fiscal year in which the Date of Termination occurs through the Date of
Termination and the denominator of 

 5
 

which is three hundred sixty-five (365), reduced by any amounts paid to
Executive from the Company’s annual incentive plan for the fiscal year in which
Executive’s Date of Termination occurs.

(c)                                  Qualifying
Termination - Benefits.  If during
the Termination Period the employment of Executive shall terminate pursuant to
a Qualifying Termination, then the Company shall make a lump sum cash payment
to Executive within fifteen (15) days following Executive’s satisfaction of the
conditions of Section 4(g) below, but in no event later than the date that is
two and one-half (2 1⁄2) months following the end of the calendar year in which
the date of Executive’s termination of employment (or, if such termination
occurs within three (3) months prior to the date of a Change in Control, the
date of the Change in Control) occurs, of an amount equal to (i) twenty-four
(24), multiplied by (ii) the amount by which the monthly premium Executive
would be required to pay for continuation coverage pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”),
for Executive and his or her eligible dependents who were covered under the
Company’s health plans as of the date of Executive’s termination of employment
(calculated by reference to the premium as of the date of Executive’s
termination of employment) exceeds the contributions required by Executive
immediately prior to his or her Date of Termination; provided that Executive shall be solely responsible for all
matters relating to continuation of coverage pursuant to COBRA, including,
without limitation, election of such coverage and timely payment of premiums.

(d)                                 Qualifying
Termination – Life and Accidental Death and Dismemberment Insurance.  If during the Termination Period the
employment of Executive shall terminate pursuant to a Qualifying Termination,
then the Company shall make a lump sum cash payment to Executive within fifteen
(15) days following Executive’s satisfaction of the conditions of Section 4(g)
below, but in no event later than the date that is two and one-half (2 1⁄2)
months following the end of the calendar year in which the date of Executive’s
termination of employment (or, if such termination occurs within three (3)
months prior to the date of a Change in Control, the date of the Change in
Control) occurs, of an amount equal to (i) twenty-four (24), multiplied by (ii)
the amount by which the total monthly premium paid by Executive or on behalf of
Executive by the Company for accidental death and dismemberment and life
insurance coverage as of the date of Executive’s termination of employment
(calculated by reference to the premiums for such coverage under the Company’s
plans as of the date of Executive’s termination of employment) exceeds the
contributions required by Executive immediately prior to his or her Date of
Termination.

(e)                                  Accelerated
Vesting and/or Exercisability of Stock Options and Other Equity Awards.  If Executive’s employment is terminated
during the Termination Period pursuant to a Qualifying Termination, all
outstanding awards of stock options, stock appreciation rights (“SARs”)
and restricted stock (each, an “Equity Award”) granted to Executive prior
to the applicable Change in Control which are outstanding immediately prior to
the Date of Termination shall become immediately fully vested and/or
exercisable and free of all restrictions, limitations and conditions on the
later of (i) the Date of Termination or (ii) immediately prior to the Change in
Control.  In addition, with respect to
any Equity Awards that are stock options or SARs granted to Executive on or
after the date of this Agreement, but prior to the applicable Change in
Control, each such Equity Award may be exercised for a period of no less than
twelve 

 6
 

(12) months following such Qualifying
Termination, but not later than the expiration of the stated term of such
Equity Award.

(f)                                    Non-Qualifying
Termination.  If during the
Termination Period the employment of Executive shall terminate other than by
reason of a Qualifying Termination, then the Company shall pay to Executive
within three (3) business days following the Date of Termination, a lump-sum
cash amount equal to the sum of (i) Executive’s base salary through the
Date of Termination and any bonus amounts which have become payable, to the
extent not theretofore paid or deferred, and (ii) unreimbursed business
expenses incurred in accordance with Company policy and any accrued vacation
pay.  The Company may make such
additional payments, and provide such additional benefits, to Executive as the
Company and Executive may agree in writing.

(g)                                 Condition
Precedent.  Upon the occurrence of a
Qualifying Termination, and prior to the receipt of any payments or benefits
provided by paragraphs (b)(ii), (b)(iii), (c), (d) and (e) of this Section on
account of the occurrence of such Qualifying Termination, Executive shall
execute a Release (the “Release”) in the form attached hereto as Appendix
A or Appendix B, as appropriate.  Such
Release shall specifically relate to all of Executive’s rights and claims in
existence at the time of such execution and shall confirm Executive’s
obligations under the Company’s standard form of proprietary information
agreement.  It is understood that, in the
event that Executive is at least forty (40) years old on the date of the
Qualifying Termination, Executive has a certain period to consider whether to
execute such Release, and Executive may revoke such Release within seven (7)
business days after execution.  In the
event Executive does not execute and not revoke such Release within the sixty
(60) day period following the later of (i) the date of Executive’s termination
of employment or (ii) if such termination occurs within three (3) months prior
to the date of a Change in Control, the date of the Change in Control,
Executive shall not be entitled to the aforesaid payments and benefits.

5.                                       Best
Pay Provision.

(a)                                  If
any payment or benefit Executive would receive under this Plan, when combined
with any other payment or benefit Executive receives pursuant to the
termination of Executive’s employment with the Company (“Payment”), would (i) constitute a “parachute
payment” within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”),
and (ii) but for this sentence, be subject to the excise tax imposed by
Section 4999 of the Code (the “Excise
Tax”), then such Payment shall be either (x) the full amount of such
Payment or (y) such lesser amount (with cash payments being reduced before
stock option compensation) as would result in no portion of the Payment being
subject to the Excise Tax, whichever of the foregoing amounts, taking into
account the applicable federal, state and local employment taxes, income taxes,
and the Excise Tax, results in Executive’s receipt, on an after-tax basis, of
the greater amount of the Payment notwithstanding that all or some portion of
the Payment may be subject to the Excise Tax.

(b)                                      All
determinations required to be made under this Section 5, including whether and
to what extent the Payments shall be reduced and the assumptions to be utilized
in arriving at such determination, shall be made by the nationally recognized
certified public accounting firm used by the Company immediately prior to the
effective date of the

 7
 

Change in Control or, if
such firm declines to serve, such other nationally recognized certified public
accounting firm as may be designated by the Company (the “Accounting Firm”).   The Accounting Firm shall provide detailed
supporting calculations both to Executive and the Company at such time as is
requested by the Company.  All fees and
expenses of the Accounting Firm shall be borne solely by the Company.  Any determination by the Accounting Firm
shall be binding upon Executive and the Company.  For purposes of making the calculations
required by this Section 5, the Accounting Firm may make reasonable assumptions
and approximations concerning applicable taxes and may rely on reasonable, good-faith
interpretations concerning the application of Sections 280G and 4999 of the
Code.

6.                                       Withholding
Taxes.  The Company may withhold from
all payments due to Executive (or his beneficiary or estate) hereunder all
taxes which, by applicable federal, state, local or other law, the Company is
required to withhold therefrom.

7.                                       Resolution
of Disputes; Reimbursement of Legal Fees.

(a)                                       Subject
to Section 8, any dispute or controversy arising under or in connection with
this Agreement shall be settled exclusively by final and binding arbitration in
San Diego County,  California by a single neutral
arbitrator in accordance with the National Rules for the Resolution of
Employment Disputes of the American Arbitration Association (the “AAA”)
then in effect.  Judgment may be entered
on the arbitrator’s award in any court having jurisdiction.  The Company shall bear all of the AAA’s
administrative fees and the arbitrator’s expense arising in connection with any
arbitration proceeding pursuant to this Section.  Nothing in this Section 7 shall prohibit or
limit the parties from seeking provisional relief, including, but not limited
to, temporary restraining orders or preliminary injunctions before, during or
after arbitration to the extent such remedies are not available through
arbitration or cannot be obtained in a timely fashion through arbitration,
pursuant to California Code of Civil Procedure Section 1281.8 or any similar
statute of an applicable jurisdiction. 
Seeking any such relief shall not be deemed to be a waiver of such party’s
right to compel arbitration.  
Notwithstanding the AAA rules, the parties may take discovery in
accordance with Sections 1283.05(a)-(d) of the California Code of Civil
Procedure (but not subject to the restrictions of Section 1283.05(e)).  Should a non-party witness refuse to comply
with a subpoena issued by the arbitrator and the arbitrator is unable to
enforce compliance with the subpoena, the parties agree to submit the subpoena
to a court of competent jurisdiction for enforcement of the subpoena.  The parties shall have the right to file, and
the arbitrator shall rule on, pretrial motions such as demurrers and motions
for summary judgment (applying the procedural standard embodied in Rule 56 of
the Federal Rules of Civil Procedure).  The time for filing such motions shall be
determined by the arbitrator.  The
arbitrator will rule on such motions at least ten (10) business days prior to
the scheduled hearing date.  Both the
Company and Executive hereby expressly waive their right to a jury trial.

(b)                                      If
any contest or dispute shall arise under this Agreement involving termination
of Executive’s employment with the Company or involving the failure or refusal
of the Company to perform fully in accordance with the terms hereof, the
Company shall reimburse Executive for all reasonable legal fees and related
expenses, if any, incurred by Executive in connection with such contest or
dispute if a court of competent jurisdiction or an arbitrator substantially
upholds Executive’s position.

 8
 

8.                               Non-Solicitation
and Non-Disclosure.

(a)                                  Non-Solicit
of Customers.  During the term of
this Agreement and for a period of two years following a Qualifying Termination
(the “Restricted Period”), Executive will not, directly or indirectly,
solicit, induce or entice any client or prospective client of the Company or
any Subsidiary to whom Executive provided services, or for whom Executive
transacted business, or whose identity became known to Executive in connection
with Executive’s employment by the Company (i) to transact business with any
business enterprise that competes with the business of the Company and its
Subsidiaries in any geographical area in which the Company or any Subsidiary
does business, or (ii) to reduce or refrain from doing business with the Company
or any Subsidiary.

(b)                                 Non-Solicit
of Employees.  During the Restricted
Period, Executive will not, directly or indirectly, solicit, induce, entice or
encourage to cease to work with the Company or any Subsidiary, or directly or
indirectly hire, any person who is an employee of or consultant then under
contract with the Company or any Subsidiary or who was an employee of or
consultant then under contract with the Company or any Subsidiary within the
six (6) month period preceding such activity without the Company’s written
consent.

(c)                                  Confidentiality.  Executive shall not at any time without the
prior written consent of the Company, use, divulge, disclose or make accessible
to any other person, firm, partnership, corporation or other entity, any “Confidential
Information” (as defined below) except while employed by the Company, in
furtherance of the business of and for the benefit of the Company and its
Subsidiaries, provided, that Executive may disclose such information
when required to do so by a court of competent jurisdiction, by any
governmental agency having supervisory authority over the business of the
Company and its Subsidiaries, as the case may be, or by any administrative body
or legislative body (including a committee thereof) with jurisdiction to order
Executive to divulge, disclose or make accessible such information; provided,
further, that in the event that Executive is ordered by a court or other
government agency to disclose any Confidential Information, Executive shall (i)
promptly notify the Company of such order, (ii) at the written request of the
Company, diligently contest such order at the sole expense of the Company, and
(iii) at the written request of the Company, seek to obtain at the sole expense
of the Company, such confidential treatment as may be available under
applicable laws for any information disclosed under such order.  For purposes of this Section 8(c), “Confidential
Information” shall mean non-public information concerning the financial
data, strategic business plans, product development (or other proprietary
product data), customer lists, marketing plans and other non-public,
proprietary and confidential information relating to the business of the
Company or its Subsidiaries or customers, that, in any case, is not otherwise
available to the public (other than by Executive’s breach of the terms hereof).

(d)                                 Injunctive
Relief.  Executive acknowledges and
agrees that his/her services are personal and unique, and that this Section 8
is necessary to protect the trade secrets of the Company and its
Subsidiaries.  Therefore, the Company
shall have the right to enforce Section 8 by injunction, specific performance,
or other equitable relief, without bond and without prejudice to any other
rights and remedies that Company may have for breach of this Section 8.  Executive further acknowledges and agrees
that it would be extremely difficult to measure in 

 9
 

money the damage to the
Company caused by a breach of Section 8, that the restrictions and obligations
contained in Section 8 are material, and that a breach of any of the promises
or agreements contained herein will result in irreparable and continuing damage
to Company for which there may be no adequate remedy at law.  Accordingly, Executive agrees that the
Company shall be entitled to injunctive relief to remedy any breach of Section
8.  This shall be in addition to any
other remedies available to the Company in law or equity.

9.                                       Scope
of Agreement.  Nothing in this
Agreement shall be deemed to entitle Executive to continued employment with the
Company, and if Executive’s employment with the Company shall terminate prior
to a Change in Control, Executive shall have no further rights under this
Agreement (except as otherwise provided hereunder); provided, however,
that any termination of Executive’s employment during the Termination Period
shall be subject to all of the provisions of this Agreement.

10.                                 Successors;
Binding Agreement.

(a)                                  This
Agreement shall not be terminated by any Business Combination.  In the event of any Business Combination, the
provisions of this Agreement shall be binding upon the Surviving Corporation,
and such Surviving Corporation shall be treated as the Company hereunder.

(b)                                 The
Company agrees that in connection with any Business Combination, it will cause
any successor entity to the Company unconditionally to assume by written
instrument delivered to Executive (or his beneficiary or estate), all of the
obligations of the Company hereunder.

(c)                                  This
Agreement shall inure to the benefit of and be enforceable by Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 
If Executive shall die while any amounts would be payable to Executive
hereunder had Executive continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement
to such person or persons appointed in writing by Executive to receive such
amounts or, if no person is so appointed, to Executive’s estate.

11.                                 Notice.  (a) 
For purposes of this Agreement, all notices and other communications
required or permitted hereunder shall be in writing and shall be deemed to have
been duly given when delivered or five (5) days after deposit in the United
States mail, certified and return receipt requested, postage prepaid, addressed
as follows:

	
  If to Executive:

  	
   

  	
  [Name and Address]

  
	
   

  	
   

  	
   

  
	
  If to the
  Company:

  	
   

  	
  DJO Incorporated

  
	
   

  	
   

  	
  1430 Decision
  Street

  
	
   

  	
   

  	
  Vista,
  California 92081

  
	
   

  	
   

  	
  Attention:
  General Counsel

  

 

or to such other address
as either party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon
receipt.

 10
 

(b)                                 A
written notice of Executive’s Date of Termination by the Company or Executive,
as the case may be, to the other, shall (i) indicate the specific termination
provision in this Agreement relied upon, (ii) to the extent applicable, set
forth in reasonable detail the facts and circumstances claimed to provide a basis
for termination of Executive’s employment under the provision so indicated and
(iii) specify the termination date, which date shall be not less than fifteen
(15) days (thirty (30) days, if termination is by the Company for Disability or
by Executive for Good Reason) nor more than sixty (60) days after the giving of
such notice, unless such termination is for Cause, in which case the effective
Date of Termination may be the same as the date notice of such termination is
provided to Executive.  The failure by
Executive or the Company to set forth in such notice any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any
right of Executive or the Company hereunder or preclude Executive or the
Company from asserting such fact or circumstance in enforcing Executive’s or
the Company’s rights hereunder.

12.                                 Full
Settlement.  The Company’s obligation
to make any payments provided for in this Agreement and otherwise to perform
its obligations hereunder shall be in lieu and in full settlement of all other
severance payments to Executive under any other severance or employment
agreement between Executive and the Company, and any severance plan of the
Company.  The Company’s obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against
Executive or others.  In no event shall
Executive be obligated to seek other employment or take other action by way of
mitigation of the amounts payable to Executive under any of the provisions of
this Agreement and such amounts shall not be reduced whether or not Executive
obtains other employment.

13.                                 Survival.  The respective obligations and benefits
afforded to the Company and Executive as provided in Sections 4 (to the
extent that payments or benefits are owed as a result of a termination of
employment that occurs during the term of this Agreement), 6, 7, 8, 10(c)
and 12 shall survive the termination of this Agreement.

14.                                 Governing
Law; Validity.  The interpretation,
construction and performance of this agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of
California without regard to the principle of conflicts of laws.  The invalidity or unenforceability of any
provision of this agreement shall not affect the validity or enforceability of
any other provision of this agreement, which other provisions shall remain in
full force and effect.

15.                                 Counterparts.  This Agreement may be executed in counterparts,
each of which shall be deemed to be an original and all of which together shall
constitute one and the same instrument.

16.                                 Miscellaneous.  No provision of this Agreement may be
modified or waived unless such modification or waiver is agreed to in writing
and signed by Executive and by a duly authorized officer of the Company.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time. 
Failure by Executive or

 11
 

the Company to
insist upon strict compliance with any provision of this Agreement or to assert
any right Executive or the Company may have hereunder, including without
limitation, the right of Executive to terminate employment for Good Reason,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement. 
Except as otherwise specifically provided herein, the rights of, and
benefits payable to, Executive, his estate or his beneficiaries pursuant to
this Agreement are in addition to any rights of, or benefits payable to,
Executive, his estate or his beneficiaries under any other employee benefit
plan or compensation program of the Company.

17.                                 Code
Section 409A Exempt.

(a)                                  The
compensation and benefits payable under this Agreement, including without
limitation the severance benefits described in Section 4 of this Agreement, are
not intended to constitute “nonqualified deferred compensation” within the
meaning of Section 409A of the Code.  To
the extent applicable, this Agreement shall be interpreted in accordance with
Code Section 409A and Department of Treasury regulations and other interpretive
guidance issued thereunder.  If the
Company and Executive determine that any compensation or benefits payable under
this Agreement may be or become subject to Code Section 409A and related
Department of Treasury guidance, the Company and Executive agree to amend this
Agreement or adopt other policies or procedures (including amendments, policies
and procedures with retroactive effect), or take such other actions as the
Company and Executive deem necessary or appropriate to (a) exempt the
compensation and benefits payable under this Agreement from Code Section 409A
and/or preserve the intended tax treatment of the compensation and benefits
provided with respect to this Agreement, or (2) comply with the requirements of
Code Section 409A and related Department of Treasury guidance.

(b)                                 If
at the time of Executive’s termination of employment with the Company Executive
is a “specified employee” as defined in Section 409A of the Code, as determined
by the Company in accordance with Section 409A of the Code, and the deferral of
the commencement of any payments or benefits otherwise payable hereunder as a
result of such termination of employment is necessary in order to prevent any
accelerated or additional tax under Section 409A of the Code, then the Company
will defer the commencement of the payment of any such payments or benefits
hereunder (without any reduction in such payments or benefits ultimately paid
or provided to Executive) until the date that is at least six months following
Executive’s termination of employment with the Company (or the earliest date as
is permitted under Section 409A of the Code).

[Signature page follows]

 12
 

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

	
  

  	
  DJO INCORPORATED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF
  EXECUTIVE]

  
						

 

 13

APPENDIX
A

RELEASE

(INDIVIDUAL TERMINATION)

Certain capitalized terms used in this Release are
defined in the Change in Control Severance Agreement by and between DJO
Incorporated (the “Company”) and [NAME OF EXECUTIVE] (“Executive”)
dated as of the             
day of             ,
20     (the “Agreement”)  which Executive has previously executed and
of which this Release is a part.

Pursuant to the Agreement, and in consideration of and
as a condition precedent to the payments and benefits provided under Section
4(b)(ii), (b)(iii), (c), (d) and (e) of the Agreement, Executive hereby
furnishes the Company with this Release.

Executive hereby confirms his/her obligations under
the Company’s proprietary information and inventions agreement.

On Executive’s own behalf and on behalf of Executive’s
heirs, estate and beneficiaries, Executive hereby waives, releases, acquits and
forever discharges the Company, and each of its Subsidiaries and affiliates,
and each of their respective past or present officers, directors, agents,
servants, employees, shareholders, predecessors, successors and assigns, and
all persons acting by, through, under, or in concert with them, or any of them,
of and from any and all suits, debts, liens, contracts, agreements, promises,
claims, liabilities, demands, causes of action, costs, expenses, attorneys’
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known and unknown, fixed or contingent, suspected and
unsuspected, disclosed and undisclosed (“Claims”), from the beginning of
time to the date hereof, including without limitation, Claims that arose as a
consequence of Executive’s employment with the Company, or arising out of the
termination of such employment relationship, or arising out of any act
committed or omitted during or after the existence of such employment
relationship, all up through and including the date on which this Release is
executed, including, but not limited to, Claims which were, could have been, or
could be the subject of an administrative or judicial proceeding filed by
Executive or on Executive’s behalf under federal, state or local law, whether
by statute, regulation, in contract or tort. 
This Release includes, but is not limited to:  (1) Claims for intentional and negligent
infliction of emotional distress; (2) tort Claims for personal injury; (3)
Claims or demands related to salary, bonuses, commissions, stock, stock
options, or any other ownership interest in the Company, vacation pay, fringe
benefits, expense reimbursements, severance pay, front pay, back pay or any
other form of compensation; (4) Claims for breach of contract; (5) Claims for
any form of retaliation, harassment, or discrimination; (6) Claims pursuant to
any federal, state or local law or cause of action including, but not limited
to, the federal Civil Rights Act of 1964, as amended, the federal Age
Discrimination in Employment Act of 1967, as amended (“ADEA”), the
federal Employee Retirement Income Security Act of 1974, as amended, the
federal Americans with Disabilities Act of 1990, the California Fair Employment
and Housing Act, as amended, and the California Labor Code; and (7) all other
Claims based on tort law, contract law, statutory law, common law, wrongful
discharge, constructive discharge, fraud, defamation, emotional distress, pain
and suffering, breach of the implied covenant of good faith and fair dealing,
compensatory or punitive damages, interest, attorneys’ fees, and reinstatement
or re-employment.  If any court

 A-1
 

rules that Executive’s waiver of the right to file any
administrative or judicial charges or complaints is ineffective, Executive
agrees not to seek or accept any money damages or any other relief upon the
filing of any such administrative or judicial charges or complaints.

Executive acknowledge that he/she has read and
understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or her
settlement with the debtor.” 
Executive hereby expressly waives and relinquishes all rights and
benefits under that section and any law of any jurisdiction of similar effect
with respect to his/her release of any unknown Claims Executive may have
against the Company.

Notwithstanding the foregoing, nothing in this Release
shall constitute a release by Executive of any claims or damages based on any
right Executive may have to enforce the Company’s executory obligations under
the Agreement, any right Executive may have to vested or earned compensation
and benefits, or Executive’s eligibility for indemnification under applicable
law, Company governance documents, or under any applicable insurance policy
with respect to Executive’s liability as an employee or officer of the Company.

If Executive is 40 years of age or older at the time
of the Qualifying Termination, Executive acknowledges that he/she is knowingly
and voluntarily waiving and releasing any rights he/she may have under
ADEA.  Executive also acknowledges that
the consideration given under the Agreement for the Release is in addition to
anything of value to which he/she was already entitled.  Executive further acknowledges that he/she
has been advised by this writing, as required by the ADEA, that:  (A) his/her waiver and release do not
apply to any rights or claims that may arise on or after the date he/she
executes this Release; (B) Executive has the right to consult with an
attorney prior to executing this Release; (C) Executive has twenty-one
(21) days to consider this Release (although he/she may choose to voluntarily
execute this Release earlier); (D) Executive has seven (7) days following
the execution of this Release to revoke the Release; and (E) this Release
shall not be effective until the date upon which the revocation period has
expired, which shall be the eighth (8th) day after this Release is executed by
Executive, without Executive’s having given notice of revocation.

Executive further
acknowledges that Executive has carefully read this Release, and knows and
understands its contents and its binding legal effect.  Executive acknowledges that by signing this
Release, Executive does so of Executive’s own free will, and that it is
Executive’s intention that Executive be legally bound by its terms.

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  [NAME OF EXECUTIVE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  

 

 A-2

APPENDIX
B

RELEASE

(Group Termination)

Certain capitalized terms used in this Release are
defined in the Change in Control Severance Agreement by and between DJO
Incorporated (the “Company”) and [NAME OF EXECUTIVE] (“Executive”)
dated as of the             
day of             ,
20      (the “Agreement”)  which Executive has previously executed and
of which this Release is a part.

Pursuant to the Agreement, and in consideration of and
as a condition precedent to the payments and benefits provided under Section
4(b)(ii), (b)(iii), (c), (d) and (e) of the Agreement, Executive hereby
furnishes the Company with this Release.

Executive hereby confirms his/her obligations under
the Company’s proprietary information and inventions agreement.

On Executive’s own behalf and on behalf of Executive’s
heirs, estate and beneficiaries, Executive hereby waives, releases, acquits and
forever discharges the Company, and each of its Subsidiaries and affiliates,
and each of their respective past or present officers, directors, agents,
servants, employees, shareholders, predecessors, successors and assigns, and
all persons acting by, through, under, or in concert with them, or any of them,
of and from any and all suits, debts, liens, contracts, agreements, promises,
claims, liabilities, demands, causes of action, costs, expenses, attorneys’
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known and unknown, fixed or contingent, suspected and
unsuspected, disclosed and undisclosed (“Claims”), from the beginning of
time to the date hereof, including without limitation, Claims that arose as a
consequence of Executive’s employment with the Company, or arising out of the
termination of such employment relationship, or arising out of any act
committed or omitted during or after the existence of such employment
relationship, all up through and including the date on which this Release is
executed, including, but not limited to, Claims which were, could have been, or
could be the subject of an administrative or judicial proceeding filed by
Executive or on Executive’s behalf under federal, state or local law, whether
by statute, regulation, in contract or tort. 
This Release includes, but is not limited to:  (1) Claims for intentional and negligent
infliction of emotional distress; (2) tort Claims for personal injury; (3)
Claims or demands related to salary, bonuses, commissions, stock, stock
options, or any other ownership interest in the Company, vacation pay, fringe
benefits, expense reimbursements, severance pay, front pay, back pay or any
other form of compensation; (4) Claims for breach of contract; (5) Claims for
any form of retaliation, harassment, or discrimination; (6) Claims pursuant to
any federal, state or local law or cause of action including, but not limited
to, the federal Civil Rights Act of 1964, as amended, the federal Age
Discrimination in Employment Act of 1967, as amended (“ADEA”), the
federal Employee Retirement Income Security Act of 1974, as amended, the
federal Americans with Disabilities Act of 1990, the California Fair Employment
and Housing Act, as amended, and the California Labor Code; and (7) all other
Claims based on tort law, contract law, statutory law, common law, wrongful
discharge, constructive discharge, fraud, defamation, emotional distress, pain
and suffering, breach of the implied covenant of good faith and fair dealing,
compensatory or punitive damages, interest, attorneys’ fees, and reinstatement
or re-employment.  If any court 

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rules that Executive’s waiver of the right to file any
administrative or judicial charges or complaints is ineffective, Executive
agrees not to seek or accept any money damages or any other relief upon the
filing of any such administrative or judicial charges or complaints.

Executive acknowledge that he/she has read and
understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or her
settlement with the debtor.” 
Executive hereby expressly waives and relinquishes all rights and
benefits under that section and any law of any jurisdiction of similar effect
with respect to his/her release of any unknown Claims Executive may have
against the Company.

Notwithstanding the foregoing, nothing in this Release
shall constitute a release by Executive of any claims or damages based on any
right Executive may have to enforce the Company’s executory obligations under
the Agreement, any right Executive may have to vested or earned compensation
and benefits, or Executive’s eligibility for indemnification under applicable
law, Company governance documents, or under any applicable insurance policy
with respect to Executive’s liability as an employee or officer of the Company.

If Executive is 40 years of age or older at the time
of the Qualifying Termination, Executive acknowledges that he/she is knowingly
and voluntarily waiving and releasing any rights he/she may have under
ADEA.  Executive also acknowledges that
the consideration given under the Agreement for the Release is in addition to
anything of value to which he/she was already entitled.  Executive further acknowledges that he/she
has been advised by this writing, as required by the ADEA, that:  (A) his/her waiver and release do not
apply to any rights or claims that may arise on or after the date he/she
executes this Release; (B) Executive has the right to consult with an
attorney prior to executing this Release; (C) Executive has forty-five
(45) days to consider this Release (although he/she may choose to voluntarily
execute this Release earlier); (D) Executive has seven (7) days following
the execution of this Release to revoke the Release; (E) this Release
shall not be effective until the date upon which the revocation period has
expired, which shall be the eighth (8th) day after this Release is executed by
Executive, without Executive’s having given notice of revocation; and (F)
Executive has received with this Release a detailed list of job titles and ages
of all employees who were terminated in this group termination and the ages of
all employees of the Company in the same job classification or organizational unit
who were not terminated.

Executive further
acknowledges that Executive has carefully read this Release, and knows and
understands its contents and its binding legal effect.  Executive acknowledges that by signing this
Release, Executive does so of Executive’s own free will, and that it is
Executive’s intention that Executive be legally bound by its terms.

	
  

  	
   

  	
   

  
	
  

  	
   

  	
  [NAME OF EXECUTIVE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  

 

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