Document:

Exhibit  10.1

                            STOCK PURCHASE AGREEMENT
                            ------------------------

     THIS  STOCK  PURCHASE  AGREEMENT (the "Agreement") is entered into the 18th
day  of  January  2007,  and  supersedes any and all other agreements whether in
writing  or  orally  communicated,  by  and  among  Payment  Data  Systems, Inc.
(hereinafter  referred to as  "SELLER"), a Nevada corporation, and Mr. Robert D.
Evans  (hereinafter  referred  to  as  the  "PURCHASER");

WITNESSETH:

     WHEREAS,  the  PURCHASER  desires  to  purchase  3,000,000  shares  of  the
Seller's  common  stock,  par value $0.001, (the Shares), and the SELLER desires
to  sell  or  cause  to  be  sold  the Shares, upon the terms and subject to the
conditions  herein;  and

     WHEREAS,  the  parties  desire  that,  upon  the  terms  and subject to the
conditions  contained  herein,  the  PURCHASER  shall  pay  $255,000  to  the
SELLER,  (the  "Purchase  Price")  in  exchange  for  the  Shares.

NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  and  agreements
contained  in  this  Agreement,  and in order to consummate the purchase and the
sale  of  the  Shares,  it  is  hereby  agreed  as  follows:

     1.     CLOSING  AND  PURCHASE  PRICE.

     A.     PROCEDURE  FOR CLOSING.  The Closing of the purchase and sale of the
Shares  will  be held at the SELLER'S offices on January 19, 2007 at 3:00 pm EST
(the  "Closing")  or  such  other place, date and time as the parties hereto may
otherwise  agree.

     B.     PURCHASE  AND  SALE  OF  PAYMENT  DATA  SYSTEMS  STOCK.  At Closing,
PURCHASER  agrees  to  purchase the Shares from SELLER and SELLER agrees to sell
the  Shares  to  PURCHASER,  for  the  Purchase  Price.

     C.      AMOUNT  AND  PAYMENT  OF  PURCHASE PRICE.  The Purchase Price shall
consist  of  $255,000,  or  $0.085  per share of common stock, to be paid to the
SELLER  by  the  PURCHASER  in  readily  available  funds.

     2.     REPRESENTATIONS  AND  WARRANTIES  OF  SELLER.  SELLER  hereby
warrants  and  represents:

     A.     SELLER  is  duly  organized,  validly  existing and in good standing
under  the  laws of the state of Nevada, and has the corporate power and  lawful
authority  to  own,  lease  and  operate  its  assets,  properties, and business
and  to  carry  on  its  business  as  now  being  and  as heretofore conducted.

     B.     AUTHORITY  RELATIVE  TO  THIS AGREEMENT.  Except as otherwise stated
herein, the  SELLER  has  full power and authority to execute this Agreement and
carry  out  the  transactions  contemplated  by  it  and  no  further  action is
necessary  by  the  SELLER  to  make  this  Agreement  valid  and  binding  upon
SELLER  and enforceable  against  him in accordance with the terms hereof, or to
carry  out  the  actions  contemplated  hereby.  The  execution,  delivery  and
performance  of  this  Agreement  by  the  SELLER  will  not:

     (i)     constitute  a  breach  or  a  violation  of  SELLER'S  Articles  of
Incorporation,  By-Laws,  or  of  any  law, agreement, indenture, deed of trust,
mortgage, loan agreement or other instrument to which it is a party, or by which
it  is  bound;

     (ii)     constitute  a  violation of any order, judgment or decree to which
it  is  a  party  or  by  which  its  assets  or  properties  are  bound  or
affected;  or

     (iii)     result  in  the  creation  of  any  lien,  charge  or encumbrance
upon  its  assets  or  properties,  except  as  stated  herein.

     C.     OWNERSHIP.  All  of  the  Shares  have been duly authorized, validly
issued  and  are  fully  paid  and  non-assessable,  and  were  not  issued  in
violation  of  the terms of any agreement or other understanding legally binding
upon  SELLER,  and  were  issued  in  compliance  with  all  applicable  laws
and  regulations.

     D.     CONSENT.  SELLER  has  obtained  written  consent  to  enter  this
Agreement  from  SELLER's  existing  lender  holding  a  right of first refusal.

     E.       FULL  DISCLOSURE.  Now  and  as  of  the  date  of  Closing,  no
representation  or  warranty  of SELLER contained in this Agreement, and, to the
best  knowledge  of  SELLER  (or  any  agents  of  SELLER), no document or other
paper  furnished  by or on behalf  of SELLER to PURCHASER (or any of its agents)
pursuant  to  this  Agreement  or  in  connection  with  the  transaction
contemplated  hereby,  taken  as  a whole, contains  an  untrue  statement  of a
material  fact  or omits to state a material fact  required to be stated therein
or necessary to make the statements made, in the  context  in  which  made,  not
false  or  misleading.

     3.     REPRESENTATIONS  AND  WARRANTIES  OF  THE  PURCHASER.  PURCHASER
hereby  warrants,  represents  and  agrees  that:

     A.      PURCHASER  is  an  accredited  investor, which is defined, in part,
pursuant  to  Rule  501  of Regulation D promulgated under the Securities Act of
1933  ("Regulation  D"),  as  follows:

"Any  natural  person  whose  individual net worth, or joint net worth with that
person's  spouse,  at  the  time of his purchase exceeds $1,000,000; Any natural
person  who  had  an  individual income in excess of $200,000 in each of the two
most  recent  years,  or  joint  income  with  that person's spouse in excess of
$300,000 in each of those years and has a reasonable expectation of reaching the
same  income  level  in  the  current  year."

     B.     AUTHORITY  RELATIVE  TO  THIS  AGREEMENT  AND  ANCILLARY  DOCUMENTS.
Except as otherwise stated herein, the PURCHASER has full power and authority to
execute  this  Agreement, and carry out the transactions contemplated hereby and
thereby  and  no  further  action  is  necessary  by  the PURCHASER to make this
Agreement  valid  and  binding  upon  PURCHASER  and  enforceable  against it in
accordance  with  the  terms  hereof,  or  to carry out the actions contemplated
hereby  and  thereby.  The execution, delivery and performance of this Agreement
by  the  PURCHASER  will  not:

     (i)     constitute  a  breach  or  a  violation  of  any  law,  agreement,
indenture,  deed  of  trust,  mortgage,  loan  agreement  or other instrument to
which  he  is  a  party,  or  by  which  he  is  bound;

     (ii)     constitute  a  violation of any order, judgment or decree to which
he  is  a  party  or  by  which  his  assets  or  properties  are  bound  or
affected;  or

     (iii)     result  in  the  creation  of  any  lien,  charge  or encumbrance
upon  his  assets  or  properties  except  as  stated  herein.

     C.     NO  REGISTRATION.  PURCHASER  warrants  that  it  is  acquiring  the
Shares  for  investment and for PURCHASER'S own account and not  as a nominee or
agent  for  any  other  person and with no present intention of distributing  or
reselling  such  shares.  PURCHASER  understands  (1)  that  the Shares have not
been  registered  for sale under the Securities  Act  or  any  state  securities
or  "blue-sky"  laws  in  reliance  upon  exemptions therefrom, which exemptions
depend  upon,  among  other  things,  the bona fide  nature  of  the  investment
intent  of  PURCHASER  as  expressed herein, (2) that such  securities  must  be
held  indefinitely  and  not  sold  until such shares are registered  under  the
Securities  Act  and  any  applicable  state  securities  or  "blue-sky"  laws,
unless  an  exemption  from  such  registration  is  available.

     D.      INFORMATION ON SELLER. PURCHASER has been furnished with or has had
access  at  the  EDGAR  Website of the Securities and Exchange Commission to the
SELLER's  Form  10-KSB  for  the  year  ended December 31, 2005 and all periodic
reports  filed  with the Commission thereafter, but not later than five business
days  before  the Closing.  In addition, the PURCHASER has had an opportunity to
talk  with  Management of the SELLER and has received in writing from the SELLER
such  other information concerning its operations, financial condition and other
matters  as  the  PURCHASER  has  requested in writing to the extent required by
Regulation  D,  and  considered  all  factors  the  PURCHASER  deems material in
deciding  on  the  advisability  of  investing  in  the  Shares.

    E.           COMMON  STOCK  LEGEND.  The  Shares shall bear the following of
similar  legend:

"THE  SHARES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES  ACT  OF 1933, AS AMENDED.  THESE SHARES MAY NOT BE SOLD, OFFERED FOR
SALE,  PLEDGED  OR  HYPOTHECATED  IN  THE  ABSENCE  OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAW OR AN
OPINION  OF  COUNSEL  REASONABLY SATISFACTORY TO PAYMENT DATA SYSTEMS, INC. THAT
SUCH  REGISTRATION  IS  NOT  REQUIRED."

    F.  COMMUNICATION  OF  OFFER.  The  offer  to  sell  the Shares was directly
communicated  to  the  PURCHASER  by  the  SELLER.  At no time was the PURCHASER
presented with or solicited by any leaflet, newspaper or magazine article, radio
or  television  advertisement,  or  any  other  form  of  general advertising or
solicited  or  invited  to  attend  a  promotional  meeting  otherwise  than  in
connection  and  concurrently  with  such  communicated  offer.

    G.       NO  GOVERNMENT  REVIEW.  The  PURCHASER  understands that no United
States  federal  or  state  agency or any other governmental or state agency has
passed  on  or  made  recommendations  or  endorsement  of  the  Shares  or  the
suitability  of  the  investment  in the Shares nor have such authorities passed
upon  or  endorsed  the  merits  of  the  offering  of  the  Shares.

    H.       FULL  DISCLOSURE.  Now  and  as  of  the  date  of  Closing,  no
representation or warranty of PURCHASER contained in this Agreement, and, to the
best  knowledge  of  PURCHASER  (or  any  agents  of  PURCHASER), no document or
other  paper  furnished  by  or on behalf  of PURCHASER to SELLER (or any of its
agents)  pursuant  to  this  Agreement or in  connection  with  the  transaction
contemplated  hereby,  taken  as  a whole, contains  an  untrue  statement  of a
material  fact  or omits to state a material fact  required to be stated therein
or necessary to make the statements made, in the  context  in  which  made,  not
false  or  misleading.

     4.     EXPENSES.  Each  of  the  parties  hereto  shall  pay  its  own
expenses  in  connection  with  this  Agreement  and  the  transactions
contemplated  hereby, including  the  fees  and  expenses  of  its  counsel  and
other  experts.

     5.     CLOSING  DELIVERIES.  At  the  Closing,  the  deliveries hereinafter
specified shall be made by the respective parties hereto, in order to consummate
the  transactions  contemplated  hereby.

     A.     DELIVERIES  BY  SELLER.  SELLER  shall  deliver  or  cause  to  be
delivered  soon  as  reasonably  practical  to  PURCHASER,  stock  certificates,
and  any  and  all  other  instruments  of  conveyance  and  transfer  as
required  by  Section  1  of  this  Agreement.

     B.     DELIVERIES  BY  PURCHASER.  PURCHASER  shall deliver or caused to be
delivered  to  SELLER, the  Purchase  Price  of  this  Agreement;  and  any  and
all  other instruments  of  conveyance  and  transfer  as  required by Section 1
of  this  Agreement.

     6.     CONSUMMATION  OF  AGREEMENT.  PURCHASER  and  SELLER shall use their
best  efforts  to  perform  and  fulfill  all  conditions  and obligations to be
performed  and  fulfilled by them under this Agreement, and SELLER shall use his
best  efforts  to  further ensure that to the extent within SELLER'S control, no
breach  of any of SELLER'S representations, warranties, and agreements hereunder
or contemplated hereby occurs or exists on or before Closing to the end that the
transactions  contemplated  by  this  Agreement  shall  be  fully  carried  out.

     7.     FURTHER  ASSURANCES.  Each  of the parties hereto shall execute such
documents, further instruments and other papers and take such further actions as
may  be  reasonably required or desirable to carry out the provisions hereof and
the  transactions  contemplated  hereby.

     8.     GENERAL.

     A.     SURVIVAL  OF REPRESENTATIONS AND WARRANTIES.  Each of the parties to
this  Agreement  covenants  and  agrees  that  its  respective  representations,
warranties,  covenants  and  statements  and  agreements  contained  in  this
Agreement  and  the  exhibits  hereto,  and  in  any  documents  delivered  in
connection herewith, shall survive  the Closing indefinitely.  Except agreements
between  the  PURCHASER  and  SELLER,  and  as  set forth in this Agreement, any
exhibits  hereto  or  in  the  documents  and  papers  delivered  in  connection
herewith,  there  are  no  other  agreements,  representations,  warranties  or
covenants  by  or  among  the  parties  hereto  with  respect  to  the  subject
matter  hereof.

     B.     ENTIRE  AGREEMENT.  This  Agreement  (including  all  documents  and
papers delivered  pursuant  hereto  and  any  written amendments hereof executed
by  the  parties  hereto)  constitutes  the  entire  agreement  and  supersedes
all  prior  agreements and understandings, oral and written, between the parties
hereto  with  respect  to  the  subject  matter  hereof.

     C.     SECTIONS  AND  OTHER  HEADINGS.  The  section  and  other  headings
contained in this Agreement are for reference purposes only and shall not affect
the  meaning  or  interpretation  of  this  Agreement.

     D.     GOVERNING  LAW.  This  Agreement  and  all transactions contemplated
hereby, shall be governed by, construed and enforced in accordance with the laws
of  the  State  of  Nevada  without  regard  to its conflict of laws provisions.
In  the event that litigation  results  from  or  arises  out  of this Agreement
or the performance thereof,  the  parties  agree  to  reimburse  the  prevailing
party's  reasonable attorney's  fees,  court  costs,  and  all  other  expenses,
whether  or  not  taxable  by  the  court as costs,  in  addition  to  any other
relief  to  which,  the  prevailing  party  may  be  entitled.

     E.     CONTRACTUAL  PROCEDURES.  Unless  specifically  disallowed  by  law,
should  litigation  arise  hereunder,  service  of  process  therefore,  may  be
obtained  through  certified  mail, return receipt requested; the parties hereto
waiving any and  all  rights  they  may  have  to  object to the method by which
service  was  perfected.

     F.     AMENDMENT  AND  WAIVER.  The  parties  may by mutual agreement amend
this  Agreement  in  any  respect,  and  any  party,  as  to such party, may (a)
extend  the  time  for  the  performance  of any of the obligations of any other
party,  and  (b)  waive  (i)  any  inaccuracies  in  representations  by  any
other  party,  (ii)  compliance  by  any  other party with any of the agreements
contained  herein  and  performance  of any obligations by such other party, and
(iii) the fulfillment of any  condition  that is precedent to the performance by
such party of any of its obligations under this Agreement.  To be effective, any
such  amendment  or  waiver  must  be  in  writing  and  be  signed by the party
against  whom  enforcement  of  the  same  is  sought.

     G.     COUNTERPARTS.  This  Agreement  may  be  executed  in  one  or  more
counterparts,  each  of whom shall for all purposes are deemed to be an original
and  all  of  which  shall  constitute  one  instrument.

     H.     ADVICE  OF COUNSEL.  EACH PARTY ACKNOWLEDGES THAT, IN EXECUTING THIS
AGREEMENT,  SUCH PARTY HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT
LEGAL  COUNSEL,  AND  HAS READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF
THIS  AGREEMENT.

IN  WITNESS  WHEREOF,  this  Agreement  has been executed by each of the parties
hereto  all  on  the  date  first  above  written.

PURCHASER:

Robert  D.  Evans

By:  /s/  Robert  D.  Evans
     ----------------------
     Robert  D.  Evans

SELLER:

Payment  Data  Systems,  Inc.,  a  Nevada  corporation

By:  /s/  Michael  R.  Long
     ----------------------
     Michael  R.  Long
     Chief  Executive  OfficerExhibit 4.1

    2006
      STOCK OPTION PLAN OF

    SKINVISIBLE,
      INC.

    A
      Nevada Corporation

    

    1.     Purpose
      of
      the Plan

    

    The
      purpose of this Plan is to strengthen Skinvisible, Inc. by providing incentive
      stock options as a means to attract, retain and motivate key corporate
      personnel, through ownership of stock of the Company, and to attract individuals
      of outstanding ability to render services to and enter the employment of the
      Company or its subsidiaries.

    

    2.     Types
      of
      Stock Options

     

    There
      shall be two types of Stock Options (referred to herein as "Options" without
      distinction between such different types) that may be granted under this Plan:
      (1) Options intended to qualify as Incentive Stock Options under Section 422
      of
      the Internal Revenue Code (“Qualified Stock Options”), and (2) Options not
      specifically authorized or qualified for favorable income tax treatment under
      the Internal Revenue Code (“Non-Qualified Stock Options”).

    

    3.     Definitions

    

    The
      following definitions are applicable to the Plan:

    

    
      	
              (a)

            	
              Board.
                The Board of Directors of the
                Company.

            

    

    

    
      	
              (b)

            	
              Code.
                The Internal Revenue Code of 1986, as amended from time to
                time.

            

    

    

    
      	
              (c)

            	
              Common
                Stock.
                The shares of Common Stock of the
                Company.

            

    

    

    
      	
              (d)

            	
              Company.
                Skinvisible, Inc., a Nevada
                corporation.

            

    

    

    
      	
              (e)

            	
              Consultant.
                An individual or entity that renders professional services to the
                Company
                as an independent contractor and is not an employee or under the
                direct
                supervision and control of the
                Company.

            

    

    

    
      	
              (f)

            	
              Disabled
                or Disability.
                For the purposes of Section 7, a disability of the type defined in
                Section
                22(e)(3) of the Code. The determination of whether an individual
                is
                Disabled or has a Disability is determined under procedures established
                by
                the Plan Administrator for purposes of the
                Plan.

            

    

    

    
      	
              (g)

            	
              Fair
                Market Value.
                For purposes of the Plan, the “fair market value" per share of Common
                Stock of the Company at any date shall be: (a) if the Common Stock
                is
                listed on an established stock exchange or exchanges or the NASDAQ
                National Market, the closing price per share on the last trading
                day
                immediately preceding such date on the principal exchange on which
                it is
                traded or as reported by NASDAQ; or (b) if the Common Stock is not
                then
                listed on an exchange or the NASDAQ National Market, but is quoted
                on the
                NASDAQ Small Cap Market, the NASDAQ electronic bulletin board or
                the
                National Quotation Bureau pink sheets, the average of the closing
                bid and
                asked prices per share for the Common Stock as quoted by NASDAQ or
                the
                National Quotation Bureau, as the case may be, on the last trading
                day
                immediately preceding such date; or (c) if the Common Stock is not
                then
                listed on an exchange or the   NASDAQ National Market, or quoted by
                NASDAQ or the National Quotation Bureau, an amount determined in
                good
                faith by the Plan Administrator.

            

    

          
      

    
      	
              (h)

            	
              Incentive
                Stock Option.
                Any Stock Option intended to be and designated as an "incentive stock
                option" within the meaning of Section 422 of the
                Code.

            

    

    

    
      	
              (i)

            	
              Non-Qualified
                Stock Option. Any
                Stock Option that is not an Incentive Stock
                Option.

            

    

    

    
      	
              (j)

            	
              Optionee.
                The recipient of a Stock Option.

            

    

    

    
      	
              (k)

            	
              Plan
                Administrator.
                The board or a committee designated by the Board pursuant to Section
                4 to
                administer and interpret the terms of the
                Plan.

            

    

    

    
      	
              (l)

            	
              Stock
                Option.
                Any option to purchase shares of Common Stock granted pursuant to
                Section
                7.

            

    

    

    4.     Administration
      of the
      Plan

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    This
      Plan
      shall be administered by a “Compensation Committee” or “Plan Administrator”
composed of members selected by, and serving at the pleasure of, the Board
      of
      Directors. Subject to the provisions of the Plan, the Plan Administrator shall
      have authority to construe and interpret the Plan, to promulgate, amend, and
      rescind rules and regulations relating to its administration, to select, from
      time to time, among the eligible employees and non-employee consultants (as
      determined pursuant to Section 5) of the Company and its subsidiaries those
      employees and consultants to whom Stock Options will be granted, to determine
      the duration and manner of the grant of the Options, to determine the exercise
      price, the number of shares and other terms covered by the Stock Options, to
      determine the duration and purpose of leaves of absence which may be granted
      to
      Stock Option holders without constituting termination of their employment for
      purposes of the Plan, and to make all of the determinations necessary or
      advisable for administration of the Plan. The interpretation and construction
      by
      the Plan Administrator of any provision of the Plan, or of any agreement issued
      and executed under the Plan, shall be final and binding upon all parties. No
      member of the Committee or Board shall be liable for any action or determination
      undertaken or made in good faith with respect to the Plan or any agreement
      executed pursuant to the Plan.

    

    All
      of
      the members of the Committee shall be persons who, in the opinion of counsel
      to
      the Company, are outside directors and "non-employee directors" within the
      meaning of Rule l6b-3(b)(3)(i) promulgated by the Securities and Exchange
      Commission. -From time to time, the Board may increase or decrease the size
      of
      the Committee, and add additional members to, or remove members from, the
      Committee. The Committee shall act pursuant to a majority vote, or the written
      consent of a majority of its members, and minutes shall be kept of all of its
      meetings and copies thereof shall be provided to the Board. Subject to the
      provisions of the Plan and the directions of the Board, the Committee may
      establish and follow such rules and regulations for the conduct of its business
      as it may deem advisable. 

     

    At
      the
      option of the Board, the entire Board of Directors of the Company may act as
      the
      Plan Administrator during such periods of time as all members of the Board
      are
“outside directors” as defined in Prop. Treas. Regs. §1.162-27(e)(3), except
      that this requirement shall not apply during any period of time prior to the
      date the Company's Common Stock becomes registered pursuant to Section 12 of
      the
      Securities Exchange Act of 1934, as amended.

    

    5.     Grant
      of
      Options

    

    The
      Company is hereby authorized to grant Incentive Stock Options as defined in
      section 422 of the Code to any employee or director (including any officer
      or
      director who is an employee) of the Company, or of any of its subsidiaries;
      provided, however, that no person who owns stock possessing more than 10% of
      the
      total combined voting power of all classes of stock of the Company, or any
      of
      its parent or subsidiary corporations, shall be eligible to receive an Incentive
      Stock Option under the Plan unless at the time such Incentive Stock Option
      is
      granted the Option price is at least 110% of the fair market value of the shares
      subject to the Option, and such Option by its terms is not exercisable after
      the
      expiration of five years frorn the date such Option is granted.

    

    An
      employee may receive more than one Option under the Plan. Non-Employee Directors
      shall be eligible to receive Non--Qualified Stock Options in the discretion
      of
      the Plan Administrator. In addition, Non--Qualified Stock Options may be granted
      to Consultants who are selected by the Plan Administrator.

    

    6.     Stock
      Subject
      to Plan

    

    The
      stock
      available for grant of Options under this Plan shall be shares of the Company's
      authorized but unissued, or reacquired, Common Stock. The aggregate number
      of
      shares that may be issued pursuant to exercise of Options granted under the
      Plan, as amended, shall not exceed 10,000,000 shares of common stock (subject
      to
      adjustment as provided herein), including shares previously issued under this
      Plan. The maximum number of shares for which an Option may be granted to any
      Optionee during any calendar year shall not exceed 5% of the issued and
      outstanding shares. In the event that any outstanding Option under the Plan
      for
      any reason expires or is terminated, the shares of Common Stock allocable to
      the
      unexercised portion of the Option shall again be available for Options under
      the
      Plan as if no Option had been granted with regard to such shares.

    

    7.     Terms
      and
      Conditions of Options

    

    Options
      granted under the Plan shall be evidenced by agreements (which need not be
      identical) in such form and containing such provisions that are consistent
      with
      the Plan as the Plan Administrator shall from time to time 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    approve.
      Such agreements may incorporate all or any of the terms hereof by reference
      and
      shall comply with and be subject to the following terms and
      conditions:

    

    
      	
              (a)

            	
              Number
                of Shares.
                Each Option agreement shall specify the number of shares subject
                to the
                Option.

            

    

    

    
      	
              (b)

            	
              Option
                Price.
                The purchase price for the shares subject to any Option shall be
                determined by the Plan Administrator at the time of the grant, but
                shall
                not be less than 85% of Fair Market Value per share. Anything to
                the
                contrary notwithstanding, the purchase price for the shares subject
                to any
                Incentive Stock Option shall not be less than 100% of the Fair Market
                Value of the shares of Common Stock of the Company on the date the
                Stock
                Option is granted. In the case of any Option granted to an employee
                who
                owns stock possessing more than 10%
                of the total combined voting power of all classes of stock of the
                Company,
                or any of its parent or subsidiary corporations, the Option price
                shall
                not be less than 110% of the Fair Market Value per share of the Common
                Stock of the Company on the date the Option is granted. For purposes
                of
                determining the stock ownership of an employee, the attribution rules
                of
                Section 424(d) of the Code shall
                apply.

            

    

      

    
      	
              (c)

            	
              Notice
                and Payment.
                Any exercisable portion of a Stock Option may be exercised only by:
                (a)
                delivery of a written notice to the Company prior to the time when
                such
                Stock Option becomes unexercisable herein, stating the number of
                shares
                bring purchased and complying with all applicable rules established
                by the
                Plan Administrator; (b) payment in full of the exercise price of
                such
                Option by, as applicable, delivery of: (i) cash or check for an amount
                equal to the aggregate Stock Option exercise price for the number
                of
                shares being purchased, (ii) in the discretion of the Plan Administrator,
                upon such terms as the Plan Administrator shall approve, a copy of
                instructions to a broker directing such broker to sell the Common
                Stock
                for which such Option is exercised, and to remit to the Company the
                aggregate exercise price of such Stock Option (a "cash1ess exercise"),
                or
                (iii) in the discretion of the Plan Administrator, upon such terms
                as the
                Plan Administrator shall approve, shares of the Company's Common
                Stock
                owned by the Optionee, duly endorsed for transfer to the Company,
                with a
                Fair Market Value on the date of delivery equal to the aggregate
                purchase
                price of the shares with respect to which such Stock Option or portion
                is
                thereby exercised (a "stock-for-stock exercise"); (c) payment of
                the
                amount of tax required to be withheld (if any) by the Company, or
                any
                parent or subsidiary corporation as a result of the exercise of a
                Stock
                Option. At the discretion of the Plan Administrator, upon such terms
                as
                the Plan Administrator shall approve, the Optionee my pay all or
                a portion
                of the tax withholding by: (i) cash or check payable to the Company,
                (ii)
                a cashless exercise, (iii) a stock-for-stock exercise, or (iv) a
                combination of one or more of the foregoing payment rnethods; and
                (d)
                delivery of a written notice to the Company requesting that the Company
                direct the transfer agent to issue to the Optionee (or his designee)
                a
                certificate for the number of shares of Common Stock for which the
                Option
                was exercised or, in the case of a cashless exercise, for any shares
                that
                were not sold in the cashless exercise. Notwithstanding the foregoing,
                the
                Company, in its sole discretion, may extend and maintain, or mange
                for the
                extension and maintenance of credit to any Optionee to finance the
                Optionee’s purchase of shares pursuant to the exercise of any Stock
                Option, on such terms as may be approved by the Plan Administrator,
                subject to applicable regulations of the Federal Reserve Board and
                any
                other laws or regulations in effect at the time such credit is
                extended.

            

    

    

    
      	
              (d)

            	
              Terms
                of Option.
                No Option shall be exercisable after the expiration of the earliest
                of:
                (a) ten years after the date the Option is granted, (b) three months
                after
                the date the Optionee's employment with the Company and its subsidiaries
                terminates, or a Non-Employee Director or Consultant ceases to provide
                services to the Company, if such termination or cessation is for
                any
                reason other than Disability or death, (c) one year after the date
                the
                Optionee's employment with the Company, and its subsidiaries, terminates,
                or a Non--Employee Director or Consultant ceases to provide services
                to
                the Company, if such termination or cessation is a result of death
                or
                Disability; provided, however, that the Option agreement for any
                Option
                may provide for shorter periods in each of the foregoing instances.
                In the
                case of an Incentive Stock Option granted to an employee who owns
                stock
                possessing more than 10% of the total combined voting power of all
                classes
                of stock of the Company, or any of its parent or subsidiary corporations,
                the term set forth in (a) above shall not be more than five years
                after
                the date the Option is granted.

            

    

     

    
      	
              (e)

            	
              Exercise
                of an Option.
                No Option shall be exercisable during the lifetime of the Optionee
                by any
                person other than the Optionee. Subject to the foregoing, the Plan
                Administrator shall have the power to set the time or times within
                which
                each Option shall be exercisable and to accelerate the time or times
                of
                exercise; provided however, the Option shall provide the right to
                exercise
                at the rate of at least 20% per year over five years from the date
                the
                Option is granted. Unless otherwise provided by the Plan Administrator,
                each Option granted under the Plan 

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    
      	
               

            	
              shall
                become exercisable on a cumulative basis as to one--third (1/3) of
                the
                total number of shares covered thereby at any time after one year
                from the
                date the Option is granted and an additional one-third (1/3) of such
                total
                number of shares at any time after the end of each consecutive one-year
                period thereafter until the Option has become exercisable as to all
                of
                such total number of shares. To the extent that an Optionee has the
                right
                to exercise an Option and purchase shares pursuant hereto, the Option
                may
                be exercised from time to time by written notice to the Company,
                stating
                the number of shares being purchased and accompanied by payment in
                full of
                the exercise price for such
                shares.

            

 

    
      	
              (f)

            	
              No
                Transfer of Option.
                No Option shall be transferable by an Optionee otherwise than by
                will or
                the laws of descent and
                distribution.

            

    

    

    
      	
              (g)

            	
              Limit
                on Incentive Stock Option.
                The aggregate Fair Market Value (determined at the time the Option
                is
                granted) of the stock with respect to which an Incentive Stock Option
                is
                granted and exercisable for the first time by an Optionee during
                any
                calendar year (under all Incentive Stock Option plans of the Company
                and
                its subsidiaries) shall not exceed $100,000. To the extent the aggregate
                Fair Market Value (determined at the time the Stock Option is granted)
                of
                the Common Stock with respect to which Incentive Stock Options are
                exercisable for the first time by an Optionee during any calendar
                year
                (under all Incentive Stock Option plans of the Company and any parent
                or
                subsidiary corporations) exceeds $100,000, such Stock Options shall
                be
                treated as Non--Qualified Stock Options. The determination of which
                Stock
                Options shall be treated as Non--Qualified Stock Options shall be
                made by
                taking Stock Options into account in the Order in which they were
                granted.

            

    

    

    
      	
              (h)

            	
              Restriction
                on Issuance of Shares.
                The issuance of Options and shares shall be subject to compliance
                with all
                of the applicable requirements of law with respect to the issuance
                and
                sale of securities, including, without limitation, any required
                qualification under state securities laws. If an Optionee acquires
                shares
                of Common Stock pursuant to the exercise of an Option, the Plan
                Administrator, in its sole discretion, may require as a condition
                of
                issuance of shares covered by the Option that the shares of Common
                Stock
                be subject to restrictions on transfer. The Company may place a legend
                on
                the share certificates reflecting the fact that they are subject
                to
                restrictions on transfer pursuant to the terms of this Section. In
                addition, the Optionee may be required to execute a buy-sell agreement
                in
                favor of the Company or its designee with respect to all or any of
                the
                shares so acquired. In such event, the terms of any such agreement
                shall
                apply to the optioned shares.

            

    

    

    
      	
              (i)

            	
              Investment
                Representation.
                Any Optionee may be required, as a condition of issuance of shares
                covered
                by his or her Option, to represent that the shares to be acquired
                pursuant
                to exercise will be acquired for investment and without a view toward
                distribution thereof, and in such case, the Company may place a legend
                on
                the share certificate(s) evidencing the fact that they were acquired
                for
                investment and cannot be sold or transferred unless registered under
                the
                Securities Act of 1933, as amended, or unless counsel for the Company
                is
                satisfied that the circumstances of the proposed transfer do not
                require
                such registration.

            

    

     

    
      	
              (j)

            	
              Rights
                as a Shareholder or Employee.
                An Optionee or transferee of an Option shall have no right as a
                stockholder of the Company with respect to any shares covered by
                any
                Option until the date of the issuance of a share certificate for
                such
                shares. No adjustment shall be made for dividends (Ordinary or
                extraordinary, whether cash, securities, or other property), or
                distributions or other rights for which the record date is prior
                to the
                date such share certificate is issued, except as provided in paragraph
                (m)
                below. Nothing in the Plan or in any Option agreement shall confer
                upon
                any employee any right to continue in the employ of the Company or
                any of
                its subsidiaries or interfere in any way with any right of the Company
                or
                any subsidiary to terminate the Optionee's employment at any
                time.

            

    

    

    
      	
              (k)

            	
              No
                Fractional Shares.
                In no event shall the Company be required to issue fractional shares
                upon
                the exercise of an Option.

            

    

    

    
      	
              (l)

            	
              Exercise
                in the Event of Death.
                In the event of the death of the Optionee, any Option or unexercised
                portion thereof granted to the Optionee, to the extent exercisable
                by him
                or her on the date of death, may be exercised by the Optionee's personal
                representatives, heirs, or legatees subject to the provisions of
                paragraph
                (d) above.

            

    

    

    
      	
              (m)

            	
              Recapitalization
                or Reorganization of the Company.
                Except as otherwise provided herein, appropriate and proportionate
                adjustments shall be made (1) in the number and class of shares subject
                to
                the Plan, (2) to the 

            

    

    
 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	 	Option
              rights granted under the Plan, and (3) in the exercise price of such
              Option rights, in the event that the number of shares of Common Stock
              of
              the Company are increased or decreased as a result of a stock dividend
              (but only on Common Stock), stock split, reverse stock split,
              recapitalization, reorganization, merger, consolidation, separation,
              or
              like change in the corporate or capital structure of the Company. In
              the
              event there shall be any other change in the number or kind of the
              outstanding shares of Common Stock of the Company, or any stock or
              other
              securities into which such common stock shall have been changed, or
              for
              which it shall have been exchanged, whether by reason of a complete
              liquidation of the Company or a merger, reorganization, or consolidation
              with any other corporation in which the Company is not the surviving
              corporation, or the Company becomes a wholly-owned subsidiary of another
              corporation, then if the Plan Administrator shall, in its sole discretion,
              determine that such change equitably requires an adjustment to shares
              of
              Common Stock currently subject to Options under the Plan, or to prices
              or
              terms of outstanding Options, such adjustment shall be made in accordance
              with such determination. 
               

              To
                the extent that the foregoing adjustments relate to stock
                or securities of the Company, such adjustment shall be made by the
                Plan
                Administrator, the determination of which in that respect shall be
                final,
                binding, and conclusive. No right to purchase fractional shares shall
                result from any adjustment of Options pursuant to this Section. In
                case of
                any such adjustment, the shares subject to the Option shall he rounded
                down to the nearest whole share. Notice of any adjustment shall be
                given
                by the Company to each Optionee whose Options shall have been so
                adjusted
                and such adjustment (whether or not notice is given) shall be effective
                and binding for all purposes of the Plan.

               

              In
                the event of a complete liquidation of the Company or a
                merger, reorganization, or consolidation of the Company with any
                other
                corporation in which the Company is not the surviving corporation,
                or the
                Company becomes a wholly-owned subsidiary of another corporation,
                any
                unexercised Options granted under the Plan shall be deemed cancelled
                unless the surviving corporation in any such merger, reorganization,
                or
                consolidation elects to assume the Options under the Plan or to issue
                substitute Options in place thereof; provided, however, that
                notwithstanding the foregoing, if such Options would be cancelled
                in
                accordance with the foregoing, the Optionee shall have the right
                exercisable during a ten-day period ending on the fifth day prior
                to such
                liquidation, merger, or consolidation to exercise such Option in
                whole or
                in part without regard to any installment exercise provisions in
                the
                Option agreement.

            

    

     

    
      	
              (n)

            	
              Modification,
                Extension and Renewal of Options.
                Subject to the terms and conditions and within the limitations of
                the
                Plan, the Plan Administrator may modify, extend or renew outstanding
                options granted under the Plan and accept the surrender of outstanding
                Options (to the extent not theretofore exercised). The Plan Administrator
                shall not, however, without the approval of the Board, modify any
                outstanding Incentive Stock Option in any manner that would cause
                the
                Option not to qualify as an Incentive Stock Option within the meaning
                of
                Section 422 of the Code. Notwithstanding the foregoing. no modification
                of
                an Option shall, without the consent of the Optionee, alter or impair
                any
                rights of the Optionee under the
                Option.

            

    

    

    
      	
              (o)

            	
              Other
                Provisions.
                Each Option may contain such other terms, provisions, and conditions
                not
                inconsistent with the Plan as may be determined by the Plan
                Administrator.

            

    

    

    8.     Termination
      or Amendment of the Plan

    

    The
      Board
      may at any time terminate or amend the Plan; provided that, without approval
      of
      the holders of a majority of the shares of Common Stock of the Company
      represented and voting at a duly held meeting at which a quorum is present
      or
      the written consent of a majority of the outstanding shares of Common Stock,
      there shall be (except by operation of the provisions of paragraph (m) above)
      no
      increase in the total number of shares covered by the Plan, no change in the
      class of persons eligible to receive options granted under the Plan, no
      reduction in the exercise price of Options granted under the Plan, and no
      extension of the latest date upon which Options may be exercised; and provided
      further that, without the consent of the Optionee, no amendment may adversely
      affect any then outstanding Option or any unexercised portion
      thereof.

    

    9.     Indemnification

    

    In
      addition to such other rights of indemnification as they may have as members
      of
      the Board Committee that administers the Plan, the members of the Plan
      Administrator shall be indemnified by the Company against reasonable expense,
      including attorney's fees, actually and necessarily incurred in connection
      with
      the defense of any 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    action,
      suit or proceeding, or in connection with any appeal therein to which they,
      or
      any of them, may be a party by reason of any action taken or failure to act
      under or in connection with the Plan or any Option granted thereunder, and
      against any and all amounts paid by them in settlement thereof (provided such
      settlement is approved by independent legal counsel selected by the Company).
      In
      addition, such members shall be indemnified by the Company for any amount paid
      by them in satisfaction of a judgment in any action, suit, or proceeding, except
      in relation to matters as to which it shall have been adjudged that such member
      is liable for negligence or misconduct in the performance of his or her duties,
      provided however that within 60 days after institution of any such action,
      suit,
      or proceeding, the member shall in writing offer the Company the opportunity,
      at
      its own expense, to handle and defend the same.

     

    
      10.    Effective
        Date and Term of the Plan

       

      This
        Plan
        shall become effective (the "Effective Date") on the date of adoption by
        the
        board of directors as evidenced by the date and signature below. Options
        granted
        under the Plan prior to shareholder approval are subject to cancellation
        by the
        Plan Administrator if shareholder approval is not obtained within 12 months
        of
        the date of adoption. Unless sooner terminated by the Board in its sole
        discretion, this Plan will expire on July 15, 2016.

    

    

    IN
      WITNESS WHEREOF, the Company by its duly authorized officer, has caused this
      Plan to be executed this 15th day of July, 2006.

    

    Skinvisible,
      Inc.

    

    

    /s/    
      Terry Howlett      

    By:   
      Terry Howlett

    Its:   
      CEO, CFO &
Director

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