Document:

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                                                                    EXHIBIT 10.9

                                                      THIRD AMENDED AND RESTATED
                                            PLEDGE AGREEMENT dated as of June
                                            11, 2001, between CYRIL TALBOT III
                                            (the "Pledgor"), and DONJOY, L.L.C.,
                                            a Delaware limited liability company
                                            (the "Company").

              The Company and the Pledgor are parties to a Second Amended and
Restated Pledge Agreement dated as of July 7, 2000 (the "Existing Pledge
Agreement"), whereby the Pledgor has pledged to the Company 3,587 Common Units
of the Company (the "Initial Pledged Securities") as security for the Pledgor's
due and punctual payment and performance of the Pledgor's obligations under the
following three promissory notes (as amended, supplemented, restated or
otherwise modified from time to time in accordance with their respective terms,
the "Existing Notes") issued by the Pledgor in favor of the Company to evidence
loans made by the Company to the Pledgor to finance portions of the respective
purchase prices paid for the Initial Pledged Securities: (i) a promissory note,
originally issued as of June 30, 1999, and amended and restated as of June 28,
2000, in the original principal amount, as so amended and restated, of
$210,541.11; (ii) a promissory note issued as of June 28, 2000, in the original
principal amount of $17,728.91 and (iii) a promissory note issued as of July 7,
2000, in the original principal amount of $24,924.67.

              The Pledgor now proposes to purchase 415 Common Units of the
Company (the "Additional Pledged Securities"; and together with the Initial
Pledged Securities, the "Pledged Securities") from the Company, pursuant to the
Common Unit Purchase Agreement dated as of the date hereof, among the Company,
the Pledgor and certain other members of the Company. In order to fund a portion
of the aggregate purchase price being paid by the Pledgor for the Additional
Pledged Securities, the Pledgor desires to borrow $30,121.74 (the "Additional
Loan") from the Company, against the issuance by the Pledgor in favor of the
Company of an additional promissory note, dated as of the date hereof, in the
aggregate principal amount of the Additional Loan (as amended, supplemented,
restated or otherwise modified from time to time in accordance with its terms,
the "Additional Note"; and together with the Existing Notes, the "Notes").

              As a material inducement to the Company to make the Additional
Loan, the Pledgor has agreed with the Company to amend and restate the Existing
Pledge Agreement to provide for the Pledgor's pledge of the Pledged Securities
to the Company as security for his due and punctual payment and performance of
his obligations under each of the Notes and the Existing Pledge Agreement. This
Agreement shall amend and restate the Existing Pledge Agreement in its entirety
as and pursuant to this Agreement.

              ACCORDINGLY, in consideration of the foregoing premises and the
mutual covenants and agreements herein contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

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       SECTION 1. PLEDGE.

              The Pledgor hereby pledges to the Company, and grants to the
Company a security interest in, the Pledged Securities as security for the
prompt and complete payment when due of the unpaid principal and of interest on
each of the Notes.

       SECTION 2. DELIVERY OF PLEDGED SECURITIES.

              The Pledgor confirms that he has previously delivered to the
Company certificates representing the Initial Pledged Securities, together with
duly executed forms of assignment sufficient to transfer title thereto to the
Company.

              Upon the execution of this Agreement, the Pledgor shall deliver to
the Company the certificates representing the Additional Pledged Securities,
together with duly executed forms of assignment sufficient to transfer title
thereto to the Company.

       SECTION 3. VOTING RIGHTS; CASH DISTRIBUTIONS.

              Notwithstanding anything to the contrary contained herein, during
the term of this Agreement until such time as there exists a default in the
payment of principal or interest on any of the Notes or any other default under
any of the Notes, the Pledgor shall be entitled to all voting rights with
respect to the Pledged Securities and shall be entitled to receive all cash
distributions paid in respect of the Pledged Securities. Upon the occurrence of
and during the continuance of any such default, the Company shall retain all
such cash distributions payable on the Pledged Securities as additional security
hereunder.

       SECTION 4. STOCK DIVIDENDS; DISTRIBUTIONS ETC.

              If, while this Agreement is in effect, the Pledgor becomes
entitled to receive or receives any securities or other property in addition to,
in substitution of, or in exchange for any of the Pledged Securities (whether as
a distribution in connection with any recapitalization, reorganization or
reclassification, distributions or otherwise), the Pledgor shall accept such
securities or other property on behalf of and for the benefit of the Company as
additional security for the Pledgor's obligations under the Notes and shall
promptly deliver such additional security to the Company together with duly
executed forms of assignment, and such additional security shall be deemed to be
part of the Pledged Securities hereunder.

       SECTION 5. DEFAULT.

              If the Pledgor defaults in the payment of the principal or
interest under any of the Notes as it becomes due (whether upon demand,
acceleration or otherwise) or any other event of default under any of the Notes
occurs and has not been remedied within the 10 day period provided in Section
3(a)(i) of such Note (including the bankruptcy or insolvency of the Pledgor)
(each such occurrence shall be deemed a "Default"), the Company may exercise any
and all of the rights, powers and remedies of an owner of the Pledged Securities
(including the right to vote the shares and receive dividends and distributions
with respect to such shares) and shall have and may exercise without demand any
and all the rights and remedies granted to a secured party upon default under
the Uniform Commercial Code of the State of New York or otherwise available to

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the Company under applicable law. Without limiting the foregoing, if the Pledgor
Defaults, the Company is authorized to sell, assign and deliver at its
discretion, from time to time, all or any part of the Pledged Securities at any
private sale or public auction, on not less than ten days written notice to the
Pledgor, at such price or prices and upon such terms as the Company may deem
advisable. The Pledgor shall have no right to redeem the Pledged Securities
after any such sale or assignment. At any such sale or auction, the Company or
any other holder of Units of the Company may bid for, and become the purchaser
of, the whole or any part of the Pledged Securities offered for sale. In case of
any such sale, after deducting the costs, attorneys' fees and other expenses of
sale and delivery, the remaining proceeds of such sale shall be applied to the
principal of and accrued interest on each Note; provided, however, that after
payment in full of the indebtedness evidenced by each Note, the balance of the
proceeds of sale then remaining shall be paid to the Pledgor and the Pledgor
shall be entitled to the return of any of the Pledged Securities remaining in
the hands of the Company. The Pledgor shall be liable for any deficiency if the
remaining proceeds are insufficient to pay the indebtedness under each Note in
full, including the fees of any attorneys employed by the Company to collect
such deficiency.

       SECTION 6. COSTS AND ATTORNEYS' FEES.

              All costs and expenses, including reasonable attorneys' fees,
incurred in exercising any right, power or remedy conferred by this Agreement or
in the enforcement thereof, shall become part of the indebtedness secured
hereunder and shall be paid by the Pledgor or repaid from the proceeds of the
sale of the Pledged Securities hereunder.

       SECTION 7. PAYMENT OF INDEBTEDNESS AND RELEASE OF PLEDGED SECURITIES.

              Upon payment in full of the indebtedness evidenced by each Note,
the Company shall surrender the Pledged Securities to the Pledgor together with
all forms of assignment.

       SECTION 8. FURTHER ASSURANCES.

              The Pledgor agrees that at any time and from time to time upon the
written request of the Company, the Pledgor will execute and deliver such
further documents and do such further acts and things as the Company may
reasonably request in order to effect the purposes of this Agreement.

       SECTION 9. SEVERABILITY.

              Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

       SECTION 10. NO WAIVER; CUMULATIVE REMEDIES.

              The Company shall not by any act, delay, omission or otherwise be
deemed to have waived any of its rights or remedies hereunder, and no waiver
shall be valid unless in writing, signed by the Company, and then only to the
extent therein set forth. A waiver by the

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Company of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Company would otherwise have
on any future occasion. No failure to exercise nor any delay in exercising on
the part of the Company, any right, power or privilege hereunder shall preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. The rights and remedies herein provided are cumulative and may be
exercised singly or concurrently, and are not exclusive of any rights or
remedies provided by law.

       SECTION 11. WAIVERS, AMENDMENTS; APPLICABLE LAW.

              None of the terms or provisions of this Agreement may be waived,
altered, modified or amended except by an instrument in writing, duly executed
by the parties hereto. This Agreement and all obligations of the Pledgor
hereunder shall together with the rights and remedies of the Company hereunder,
inure to the benefit of the Company and its successors and assigns. This
Agreement and the rights and obligations hereunder shall be governed by, and
construed in accordance with, the laws of the State of New York.

       SECTION 12. ENTIRE AGREEMENT.

              This Agreement amends and restates the Existing Pledge Agreement
in its entirety, and this Agreement contains the sole and entire agreement
between the Company and the Pledgor with respect to the subject matter hereof
and thereof and supersedes all prior or contemporaneous arrangements or
understandings with respect hereto or thereto.

                                   * * * * *

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              IN WITNESS WHEREOF, this Third Amended and Restated Pledge
Agreement has been executed as of the date first above written.

                                        /s/ CYRIL TALBOT III
                                        ----------------------------------------
                                        CYRIL TALBOT III

                                        DONJOY, L.L.C.

                                        By: /s/ LESLIE H. CROSS
                                           -------------------------------------
                                           Name: LESLIE H. CROSS
                                           Title: CEO/PRESIDENT<PAGE>   1

                                                                   EXHIBIT 10.10

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

       1. PURPOSE OF THE PLAN

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

       2. ADMINISTRATION OF THE PLAN

              (a) Option Committee

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

              (b) Procedures

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

              (c) Interpretation

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

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       3. UNITS SUBJECT TO THE PLAN.

              (a) Number of Units

              Subject to the provisions of Section 9 (relating to adjustments
upon changes in capital structure and other limited liability company
transactions), the maximum number of Units subject at any one time to options
granted under the Plan ("Options"), plus the number of Units theretofore issued
and delivered pursuant to the exercise of Options granted under the Plan, shall
not in aggregate exceed 178,799 Units, as follows:

                     (i) Options relating to up to 67,520 Units may be granted
       pursuant to Option Agreements substantially in the form of Exhibit A
       hereto ("Tier I Options");

                     (ii) Options relating to up to 45,013 Units may be granted
       pursuant to Option Agreements substantially in the form of Exhibit B
       hereto ("Tier II Options");

                     (iii) Options relating to up to 56,266 Units may be granted
       pursuant to Option Agreements substantially in the form of Exhibit C
       hereto ("Tier III Options"); and

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

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

              (b) Character of Units

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

              (c) Reservation of Units

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

       4. ELIGIBILITY

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

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

       5. GRANT OF OPTIONS

              (a) General

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

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

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

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

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

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

              (b) Option Agreements

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

              (c) No Evidence of Employment or Service

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

              (d) Date of Grant

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

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       6. OPTION PRICE

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

       7. EXERCISABILITY OF OPTIONS

              (a) Committee Determination

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

              (b) Automatic Termination of Options

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

                     (i) the end of the stated term thereof;

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

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

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

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

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

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

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

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

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

       8. PROCEDURE FOR EXERCISE

              (a) Payment

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

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

              (b) Notice

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

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

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

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

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

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

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

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

              (c) Issuance of Certificates

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

              (d) Determination of Fair Market Value.

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

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

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

       9. ADJUSTMENTS

              (a) Changes in Capital Structure

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

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

              (b) Material Transactions

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

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

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

              (c) Special Rules

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

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

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

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

                                       8
<PAGE>   9

       10. RESTRICTIONS ON OPTIONS AND OPTIONED UNITS

              (a) Compliance With Securities Laws

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

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

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

              (b) Nonassignability of Option Rights

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

       11. EFFECTIVE DATE OF PLAN

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

       12. EXPIRATION AND TERMINATION OF THE PLAN

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

                                       9
<PAGE>   10

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

       13. AMENDMENT OF PLAN

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

       14. CAPTIONS

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

       15. WITHHOLDING TAXES

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

       16. OTHER PROVISIONS

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

       17. NUMBER AND GENDER

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

       18. GOVERNING LAW

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

AS ADOPTED BY THE BOARD OF MANAGERS
OF DONJOY, L.L.C.
ON FEBRUARY 28, 2001.

                                       10

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