Document:

Exhibit 10.1

     

    
      

      

    

     

    Exhibit
      10.1

     SECURITIES
      PURCHASE AGREEMENT

     

    THIS
      SECURITIES PURCHASE AGREEMENT, dated as of ______, 2006, is entered into by
      and
      between Zynex
      Medical Holdings, Inc.,
      a
      Nevada corporation, with headquarters located at 8100 Southpark Way, Suite
      A-9,
      Littleton, CO 80120 (the “Company”), and _________ or his designee (the
“Purchaser”).

     

    R
      E C I T A L S :

     

    WHEREAS,
      the
      Company and the Purchaser are executing and delivering this Agreement in
      accordance with and in reliance upon the exemption from securities registration
      for offers and sales to accredited investors afforded, inter alia, by Rule
      506
      under Regulation D (“Regulation D”) as promulgated by the United States
      Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933,
      as amended (the “1933 Act”), and/or Section 4(2) of the 1933 Act;
      and

     

    WHEREAS,
      the
      Company wishes to sell to the Purchaser and the Purchaser wishes to buy from
      the
      Company shares of the Company’s Common Stock, $.001 par value, of the Company
      (the “Common Stock”), together with a warrant exercisable for the purchase of
      shares of the Company’s Common Stock (the “Warrant”);

     

    NOW
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the parties agree as follows:

     

    AGREEMENT
      TO PURCHASE; PURCHASE PRICE.

     

    a. Purchase.

     

    (i) Subject
      to the terms and conditions of this Agreement and the other Transaction
      Agreements (as defined below), the Purchaser hereby agrees to pay to the Company
      a purchase price of $0.32 per share of Common Stock for
      __________________________ (______________) shares (the “Shares”), for a total
      purchase price of _____________________ Dollars ($____________) (the “Purchase
      Price”). The Company shall issue Certificates (as defined below) representing
      the Shares and the Warrant.

     

    (ii) The
      Company agrees to issue to the Purchaser on the Closing Date a Warrant for
      the
      purchase of a number of shares equal to 80% of the number of Shares issued
      on
      the Closing Date with an exercise price of $0.39 per share. The Warrants will
      expire on June 30, 2011 or earlier as described in the Warrant. The Warrant
      shall be in the form annexed hereto as Annex III.

     

    (iii) The
      Purchase Price shall be payable at the Closing Date (as defined below) in United
      States Dollars.

     

    b. Certain
      Definitions.
      As used
      herein, each of the following terms has the meaning set forth below, unless
      the
      context otherwise requires:

    
      
        
        

      

      
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    (i) “1934
      Act” means the Securities Exchange Act of 1934, as amended.

     

    (ii) “Affiliate”
      means, with respect to a specific Person referred to in the relevant provision,
      another Person who or which controls or is controlled by or is under common
      control with such specified Person.

     

    (iii) “Broker”
      means Chicago Investment Group, L.L.C. 

     

    (iv) “Certificates”
      means certificates representing the Shares and the Warrants, each duly executed
      by the Company and issued on the Closing Date in the name of the
      Purchaser.

     

    (v) “Closing
      Date” means the date of the closing of the purchase and sale of the Shares and
      the Warrant as mutually agreed by the Company and the Purchaser.

     

    (vi) “Company
      Control Person” means each director, executive officer, promoter, and such other
      Persons as may be deemed in control of the Company pursuant to Rule 405 under
      the 1933 Act or Section 20 of the 1934 Act.

     

    (vii) “Material
      Adverse Effect” means an event or combination of events, which individually or
      in the aggregate, would reasonably be expected to (w) adversely affect the
      legality, validity or enforceability of the Securities or any of the Transaction
      Agreements, (x) have or result in a material adverse effect on the results
      of
      operations, assets, prospects, or condition (financial or otherwise) of the
      Company and its subsidiaries, taken as a whole, (y) adversely impair the
      Company’s ability to perform fully on a timely basis its obligations under any
      of the Transaction Agreements or the transactions contemplated thereby, or
      (z)
      materially and adversely affect the value of the rights granted to the Purchaser
      in the Transaction Agreements.

     

    (viii) “Person”
      means any living person or any entity, such as, but not necessarily limited
      to,
      a corporation, partnership or trust.

     

    (ix) “Principal
      Trading Market” means The OTC Bulletin Board; provided, however, that if the
      Company lists its Common Stock for trading on the NASDAQ National Market, the
      NASDAQ Capital Market or the American Stock Exchange, “Principal Trading Market”
shall mean such exchange or automated quotation system.

     

    (x) “Purchaser
      Control Person” means each director, executive officer, promoter, and such other
      Persons as may be deemed in control of the relevant Purchaser pursuant to Rule
      405 under the 1933 Act or Section 20 of the 1934 Act.

     

    
      
        
        

      

      
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    (xi) “Registration
      Rights Agreement” means the Registration Rights Agreement in the form attached
      hereto as Annex I, as executed by each Purchaser and the Company simultaneously
      with the execution of this Agreement.

     

    (xii) “Securities”
      means the Shares, the Warrants and the Warrant Shares.

     

    (xiii) “State
      of
      Incorporation” means Nevada.

     

    (xiv) “Trading
      Day” means any day during which the Principal Trading Market shall be open for
      business.

     

    (xv) “Transaction
      Agreements” means this Securities Purchase Agreement, the Registration Rights
      Agreement and the Warrant and includes all ancillary documents referred to
      in
      those agreements.

     

    (xvi) “Warrant
      Shares” means the shares of Common Stock issuable upon exercise of the
      Warrant.

     

    c. Form
      of Payment; Delivery of Certificates.
      

     

    (i) On
      the
      Closing Date, the Purchaser shall pay the Purchase Price by delivering
      immediately available good funds in United States Dollars to the Company. There
      shall be no minimum amount that the Company is required to raise prior to
      closing this transaction.

     

    (ii) No
      later
      than five business days after the Closing Date, but in any event promptly
      following payment by the Purchaser to the Company of the Payment, the Company
      shall deliver the Certificates representing the Shares and the Warrant, each
      duly executed on behalf of the Company and issued in the name of the Purchaser,
      to the Purchaser. 

     

    d. Method
      of Payment.
      Payment
      shall be made by via cashiers check or wire transfer to:

     

    Cashiers
      Check:

    

    Zynex
      Medical Holdings, Inc.

    8100
      Southpark Way, Suite A-9

    Littleton,
      CO 80120

    Attn:
      Peter J. Leveton

    

    Wire
      transfer Instructions:

    

    Guaranty
      Bank & Trust

    Denver,
      CO

    Zynex
      Medial Holdings, Inc.

    Routing
      Number: 102000966

    Account
      Number: 1300011996

    
      
        
        

      

      
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    PURCHASER
      REPRESENTATION AND WARRANTIES.

    

     

    The
      Purchaser represents and warrants to, and covenants and agrees with, the Company
      as follows:

     

    e. Without
      limiting Purchaser’s right to sell the Shares pursuant to the Registration
      Statement or otherwise to sell any of the Securities in compliance with the
      1933
      Act, the Purchaser is purchasing the Securities and will be acquiring the
      Securities for its own account for investment only and not with a view towards
      the public sale or distribution thereof and not with a view to or for sale
      in
      connection with any distribution thereof.

     

    f. The
      Purchaser is (i) an “accredited investor” as that term is defined in Rule 501 of
      the General Rules and Regulations under the 1933 Act by reason of Rule
      501(a)(3), (ii) experienced in making investments of the kind described in
      this
      Agreement and the related documents, (iii) able, by reason of the business
      and
      financial experience of its officers (if an entity) and professional advisors
      (who are not affiliated with or compensated in any way by the Company or any
      of
      its Affiliates or selling agents), to protect its own interests in connection
      with the transactions described in this Agreement, and the related documents,
      and (iv) able to afford the loss of the entire Purchase Price.

     

    g. All
      subsequent offers and sales of the Securities by the Purchaser shall be made
      pursuant to registration of the Securities under the 1933 Act or pursuant to
      an
      exemption from registration.

     

    h. The
      Purchaser understands that the Securities are being offered and sold to it
      in
      reliance on specific exemptions from the registration requirements of the 1933
      Act and state securities laws and that the Company is relying upon the truth
      and
      accuracy of, and the Purchaser’s compliance with, the representations,
      warranties, agreements, acknowledgments and understandings of the Purchaser
      set
      forth herein in order to determine the availability of such exemptions and
      the
      eligibility of the Purchaser to acquire the Securities.

     

    i. The
      Purchaser and its advisors, if any, had the opportunity to obtain and to review
      the Company’s filings on EDGAR for the last twelve months listed on Annex II
      hereto (the documents listed on such Annex II, collectively, the “Company’s SEC
      Documents”). The Purchaser and its advisors, if any, have had an opportunity to
      request additional materials relating to the business, finances and operations
      of the Company and additional materials relating to the offer and sale of the
      Securities and the Purchaser and its advisors, if any, have been furnished
      any
      such materials which have been requested by the Purchaser. The Purchaser and
      its
      advisors, if any, have been afforded the opportunity to ask questions of the
      Company and have received complete and satisfactory answers to any such
      inquiries. 

     

    
      
        
        

      

      
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    j. The
      Purchaser understands that its investment in the Securities involves a high
      degree of risk.

     

    k. The
      Purchaser hereby represents that, in connection with its purchase of the
      Securities, it has not relied on any statement or representation by the Company
      or any of its officers, directors and employees or any of its attorneys or
      agents, except as specifically set forth herein. 

     

    l. The
      Purchaser understands that no United States federal or state agency or any
      other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Securities.

     

    m. This
      Agreement and the other Transaction Agreements to which the Purchaser is a
      party, and the transactions contemplated thereby, have been duly and validly
      authorized, executed and delivered on behalf of the Purchaser and are valid
      and
      binding agreements of the Purchaser enforceable in accordance with their
      respective terms, subject as to enforceability to general principles of equity
      and to bankruptcy, insolvency, moratorium and other similar laws affecting
      the
      enforcement of creditors’ rights generally.

     

    n. The
      Purchaser has taken no action which would give rise to any claim by any Person
      for brokerage commission other than Broker’s fees. The Company shall have no
      obligation with respect to such fees or with respect to any claims made by
      or on
      behalf of other Persons for fees of a type contemplated in this paragraph that
      may be due in connection with the transactions contemplated hereby. The
      Purchaser shall indemnify and hold harmless each of the Company, its employees,
      officers, directors, agents, and partners, and their respective Affiliates,
      from
      and against all claims, losses, damages, costs (including the costs of
      preparation and attorney’s fees) and expenses suffered in respect of any such
      claimed or existing fees, as and when incurred.

     

    o. The
      Purchaser hereby covenants and warrants that, between the Closing Date and
      the
      date on which he or she no longer holds any of the Securities, Purchaser will
      not engage in any hedging transactions or shorting transactions in any
      securities of the Company, including the Securities.

     

    p. The
      Purchaser hereby covenants and warrants that he or she is not acting as a
“group” for purposes of Section 13 of the Securities Exchange Act of 1934 in
      regard to any securities of the Company.

     

    COMPANY
      REPRESENTATIONS AND WARRANTIES.
      The
      Company represents and warrants to the Purchaser as of the date hereof and
      as of
      the Closing Date that, except as otherwise provided in the Company’s SEC
      Documents:

    

    q. Rights
      of Others Affecting the Transactions.
      There
      are no preemptive rights of any shareholder of the Company, as such, to acquire
      the

     

    
      
        
        

      

      
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    Securities.
      No party has a currently exercisable right of first refusal which would be
      applicable to any or all of the transactions contemplated by the Transaction
      Agreements.

     

    
      
        
        

      

      
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    r. Status.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Incorporation and has the requisite corporate
      power to own its properties and to carry on its business as now being conducted.
      The Company is duly qualified as a foreign corporation to do business and is
      in
      good standing in each jurisdiction where the nature of the business conducted
      or
      property owned by it makes such qualification necessary, other than those
      jurisdictions in which the failure to so qualify would not have or result in
      a
      Material Adverse Effect. The Company has registered its stock pursuant Section
      12 or Section 15(d) of Securities Exchange Act of 1934, as amended (the “1934
      Act”). The Common Stock is listed and quoted on the Principal Trading Market.
      The Company has received no notice, either oral or written, with respect to
      the
      continued eligibility of the Common Stock for such listing and quotation on
      the
      Principal Trading Market, and the Company has maintained all requirements on
      its
      part for the continuation of such listing and quotation.

     

    s. Authorized
      Shares.
      The
      authorized capital stock of the Company consists of (i) 100,000,000 shares
      of
      Common Stock, of which approximately 23,244,000 shares are outstanding as of
      April 30, 2006, and (ii) 10,000,000 shares of Preferred Stock, $.001 par value
      per share, of which no shares are outstanding as of the date hereof. The Company
      has reserved 3,000,000 shares of Company Common Stock for issuance pursuant
      to
      Company equity incentive plans. All issued and outstanding shares of Common
      Stock have been duly authorized and validly issued and are fully paid. The
      Company has sufficient authorized and unissued shares of Common Stock as may
      be
      necessary to effect the issuance of the Securities. The Securities have been
      duly authorized and, when issued, in accordance with their terms, will be duly
      and validly issued, fully paid and non-assessable.

     

    t. Transaction
      Agreements.
      This
      Agreement and each of the other Transaction Agreements, and the transactions
      contemplated thereby, have been duly and validly authorized by the Company,
      this
      Agreement has been duly executed and delivered by the Company and this Agreement
      is, and the Certificates and each of the other Transaction Agreements, when
      executed and delivered by the Company, will be, valid and binding agreements
      of
      the Company enforceable in accordance with their respective terms, subject
      as to
      enforceability to general principles of equity and to bankruptcy, insolvency,
      moratorium, and other similar laws affecting the enforcement of creditors’
rights generally.

     

    
      
        
        

      

      
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    u. Non-contravention.
      The
      execution and delivery of this Agreement and each of the other Transaction
      Agreements by the Company, the issuance of the Securities, and the consummation
      by the Company of the other transactions contemplated by this Agreement, the
      Certificates and the other Transaction Agreements do not and will not conflict
      with or result in a breach by the Company of any of the terms or provisions
      of,
      or constitute a default under (i) the certificate of incorporation or by-laws
      of
      the Company, each as currently in effect, (ii) any indenture, mortgage, deed
      of
      trust, or other material agreement or instrument to which the Company is a
      party
      or by which it or any of its properties or assets are bound, or (iii) to its
      knowledge, any existing applicable law, rule, or regulation or any applicable
      decree, judgment, or order of any court, United States federal or state
      regulatory body, administrative agency, or other governmental body having
      jurisdiction over the Company or any of its properties or assets, except where
      such conflict, breach or default which would not have or result in a Material
      Adverse Effect.

     

    v. Approvals.
      No
      authorization, approval or consent of any court, governmental body, regulatory
      agency, self-regulatory organization, or stock exchange or market or the
      shareholders of the Company is required to be obtained by the Company for the
      issuance and sale of the Securities to the Purchaser as contemplated by this
      Agreement, except such authorizations, approvals and consents that have been
      obtained.

     

    w. Filings.
      None of
      the Company’s SEC Documents contained, at the time they were filed, any untrue
      statement of a material fact or omitted to state any material fact required
      to
      be stated therein or necessary to make the statements made therein in light
      of
      the circumstances under which they were made, not misleading. Since April 1,
      2006, to the date of this Agreement the Company has timely filed all requisite
      forms, reports and exhibits thereto required to be filed by the Company with
      the
      SEC.

     

    x. Absence
      of Litigation.
      There
      is no action, suit, proceeding, inquiry or investigation before or by any court,
      public board or body pending or, to the knowledge of the Company, threatened
      against or affecting the Company before or by any governmental authority or
      nongovernmental department, commission, board, bureau, agency or instrumentality
      or any other person, wherein an unfavorable decision, ruling or finding would
      have a Material Adverse Effect or which would adversely affect the validity
      or
      enforceability of, or the authority or ability of the Company to perform its
      obligations under, any of the Transaction Agreements.

     

    y. Absence
      of Certain Company Control Person Actions or Events.
      None of
      the following has occurred during the past five (5) years with respect to a
      Company Control Person:

     

    
      
        
        

      

      
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    (i) A
      petition under the federal bankruptcy laws or any state insolvency law was
      filed
      by or against, or a receiver, fiscal agent or similar officer was appointed
      by a
      court for the business or property of such Company Control Person, or any
      partnership in which he was a general partner at or within two years before
      the
      time of such filing, or any corporation or business association of which he
      was
      an executive officer at or within two years before the time of such
      filing;

     

    (ii) Such
      Company Control Person was convicted in a criminal proceeding or is a named
      subject of a pending criminal proceeding (excluding traffic violations and
      other
      minor offenses);

     

    (iii) Such
      Company Control Person was the subject of any order, judgment or decree, not
      subsequently reversed, suspended or vacated, of any court of competent
      jurisdiction, permanently or temporarily enjoining him from, or otherwise
      limiting, the following activities:

     

    (1) acting,
      as an investment advisor, underwriter, broker or dealer in securities, or as
      an
      affiliated person, director or employee of any investment company, bank, savings
      and loan association or insurance company, as a futures commission merchant,
      introducing broker, commodity trading advisor, commodity pool operator, floor
      broker, any other Person regulated by the Commodity Futures Trading Commission
      or engaging in or continuing any conduct or practice in connection with such
      activity;

     

    (2) engaging
      in any type of business practice; or

     

    (3) engaging
      in any activity in connection with the purchase or sale of any security or
      commodity or in connection with any violation of federal or state securities
      laws or federal commodities laws;

     

    (iv) Such
      Company Control Person was the subject of any order, judgment or decree, not
      subsequently reversed, suspended or vacated, of any federal or state authority
      barring, suspending or otherwise limiting for more than 60 days the right of
      such Company Control Person to engage in any activity described in paragraph
      (3)
      of this item, or to be associated with Persons engaged in any such activity;
      or

     

    (v) Such
      Company Control Person was found by a court of competent jurisdiction in a
      civil
      action or by the SEC to have violated any federal or state securities law,
      and
      the judgment in such civil action or finding by the SEC has not been
      subsequently reversed, suspended, or vacated.

     

    z. Prior
      Issues.
      During
      the twelve (12) months preceding the date hereof, the Company has not issued
      any
      stock option grants, convertible securities or any shares of its Common Stock,
      except as provided in the

     

    Company’s SEC Documents and except for shares or warrants issued to
      consultants after December 31, 2005.

    
 

    
      
        
        

      

      
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    aa. No
      Undisclosed Liabilities or Events.
      The
      Company has no liabilities or obligations other than those disclosed in the
      Transaction Agreements or the Company’s SEC Documents or those incurred in the
      ordinary course of the Company’s business since December 31, 2005, or which
      individually or in the aggregate, do not or would not have a Material Adverse
      Effect. No event or circumstances has occurred or exists with respect to the
      Company or its properties, business, operations, condition (financial or
      otherwise), or results of operations, which, under applicable law, rule or
      regulation, including the 1934 Act, requires public disclosure or announcement
      prior to the date hereof by the Company but which has not been so publicly
      announced or disclosed. There are no proposals currently under consideration
      by
      the Board of Directors or the executive officers of the Company which proposal
      would (X) change the certificate of incorporation or other charter document
      or
      by-laws of the Company, each as currently in effect, with or without shareholder
      approval, which change would reduce or otherwise adversely affect the rights
      and
      powers of the shareholders of the Common Stock or (Y) materially or
      substantially change the business, assets or capital of the Company, including
      its interests in subsidiaries.

     

    bb. No
      Default.
      Neither
      the Company nor any of its subsidiaries is in default in the performance or
      observance of any material obligation, agreement, covenant or condition
      contained in any material indenture, mortgage, deed of trust or other material
      instrument or agreement to which it is a party or by which it or its property
      is
      bound.

     

    cc. Fees
      to Brokers, and Others.
      Except
      for payment of fees and commissions to the Broker and payments to another
      investment banker, payment of which is the sole responsibility of the Company,
      the Company has taken no action which would give rise to any claim by any Person
      for brokerage commission, Broker’s fees or similar payments by Purchaser
      relating to this Agreement or the transactions contemplated hereby. Purchaser
      shall have no obligation with respect to such fees or with respect to any claims
      made by or on behalf of other Persons for fees of a type contemplated in this
      paragraph that may be due in connection with the transactions contemplated
      hereby. The Company shall indemnify and hold harmless each Purchaser, its
      employees, officers, directors, agents, and partners, and their respective
      Affiliates, from and against all claims, losses, damages, costs (including
      the
      costs of preparation and attorney’s fees) and expenses suffered in respect of
      any such claimed or existing fees, as and when incurred.

    
      
        
        

      

      
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    CERTAIN
      COVENANTS AND ACKNOWLEDGMENTS.

    dd. Transfer
      Restrictions.
      The
      Purchaser acknowledges that (1) the Securities have not been and are not being
      registered under the provisions of the 1933 Act and, except as provided in
      the
      Registration Rights Agreement or otherwise included in an effective registration
      statement, the Securities have not been and are not being registered under
      the
      1933 Act, and may not be transferred unless (A) subsequently registered
      thereunder or (B) the Purchaser shall have delivered to the Company an opinion
      of counsel, reasonably satisfactory in form, scope and substance to the Company,
      to the effect that the Securities to be sold or transferred may be sold or
      transferred pursuant to an exemption from such registration; (2) any sale of
      the
      Securities made in reliance on Rule 144 promulgated under the 1933 Act may
      be
      made only in accordance with the terms of said Rule and further, if said Rule
      is
      not applicable, any resale of such Securities under circumstances in which
      the
      seller, or the Person through whom the sale is made, may be deemed to be an
      underwriter, as that term is used in the 1933 Act, may require compliance with
      some other exemption under the 1933 Act or the rules and regulations of the
      SEC
      thereunder; and (3) neither the Company nor any other Person is under any
      obligation to register the Securities (other than pursuant to the Registration
      Rights Agreement) under the 1933 Act or to comply with the terms and conditions
      of any exemption thereunder.

     

    ee. Restrictive
      Legend.
      The
      Purchaser acknowledges and agrees that, until such time as the Common Stock
      has
      been registered under the 1933 Act as contemplated by the Registration Rights
      Agreement and sold in accordance with an effective Registration Statement or
      otherwise in accordance with another effective registration statement, the
      certificates and other instruments representing any of the Securities (including
      the Warrant Shares) shall bear a restrictive legend in substantially the
      following form (and a stop-transfer order may be placed against transfer of
      any
      such Securities):

     

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED
      FOR
      SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      OR
      AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED.

     

    ff. Filings.
      The
      Company undertakes and agrees to make all necessary filings in connection with
      the sale of the Securities to the Purchaser under any United States laws and
      regulations applicable to the Company, or by any domestic securities exchange
      or
      trading market, and, upon request, to provide a copy thereof to the
      Purchaser.

     

    
      
        
        

      

      
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    gg. Reporting
      Status.
      So long
      as the Purchaser beneficially owns any of the Securities, the Company shall
      use
      its commercially reasonable efforts to file all reports required to be filed
      with the SEC pursuant to Section 13 or 15(d) of the 1934 Act and shall take
      all
      reasonable action under its control to ensure that adequate current public
      information with respect to the Company, as required in accordance with Rule
      144(c)(2) of the 1933 Act, is publicly available, even if the 1934 Act or the
      rules and regulations thereunder would permit such termination. At least through
      the date which is thirty (30) days after the later of the date on which all
      of
      the Warrants have been exercised or have expired, the Company will take all
      commercially reasonable action under its control to maintain the continued
      listing and quotation and trading of its Common Stock (including, without
      limitation, the shares and the Warrant shares) on the Principal Trading Market
      and, to the extent applicable to it, will comply in all material respects with
      the Company’s reporting, filing and other obligations under the by-laws or rules
      of the Principal Trading Market

     

    hh. Use
      of
      Proceeds.
      The
      Company shall use the proceeds received hereunder as follows:

     

    (i) payment
      of certain fees as described below in Section 4(h); and

     

    (ii) the
      remainder shall be used for general corporate purposes.

     

    ii. Available
      Shares.
      The
      Company shall have at all times authorized and reserved for issuance, free
      from
      preemptive rights, a number of shares at least equal to the number of shares
      issuable upon exercise of all outstanding Warrants held by all
      Purchasers.

     

    jj. Publicity,
      Filings, Releases, Etc.
      The
      Purchaser agrees that it will not disseminate any information relating to the
      Transaction Agreements or the transactions contemplated thereby, including
      issuing any press releases, holding any press conferences or other forums,
      or
      filing any reports (collectively, “Publicity”), without giving the Company
      reasonable advance notice and an opportunity to comment on the contents thereof.
      Purchaser will not include in any such Publicity any statement or statements
      or
      other material to which the other party reasonably objects. The Purchaser hereby
      consents to the inclusion of the text of the Transaction Agreements in filings
      made with the SEC and a description of the Transaction Agreement in such
      filings.

     

    kk. Broker
      Fees.
      The
      Company shall pay to the Broker a commission in the form of cash equal in value
      to nine percent (9%) of the gross proceeds from the sale of the Common Stock
      under this Agreement, one percent (1% ) unaccountable, as well as nine percent
      (9%) in common stock. Such commission
      is more fully described in the Placement Agent Agreement between the Company
      and
      the Broker on May 1, 2006.

     

    
      
        
        

      

      
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          12
          -

        
          

        

      

      
        
        

      

    

     

     

    ll. Attorneys’
      Fees.
      The
      Company shall bear its legal fees and expenses incurred in connection with
      the
      preparation and negotiation of the documents contemplated by this transaction.
      Other than the amounts contemplated in the immediately preceding section, each
      party shall pay the fees and expenses of its advisers, counsel, accountants,
      and
      other experts, if any, and all other expenses incurred by such party incident
      to
      the negotiation, preparation, execution, delivery and performance of this
      Agreement

     

    mm. Certain
      New Transactions.
      For
      purposes of this Agreement, “New Transaction” means the offer or sale of new
      common stock in a capital raising or other financing transaction by or on behalf
      of the Company to a new investor in a transaction offered or consummated after
      the date hereof; provided, however, that it is specifically understood that
      the
      term “New Transaction” does not include (i) the sale of the Securities to the
      Purchaser, (ii) the issuance of Common Stock upon the exercise or conversion
      of
      options, warrants, or convertible securities outstanding at the date hereof,
      (iii) the issuance of options or warrants hereafter granted to employees or
      consultants for compensatory purposes or the issuance of Common Stock upon
      the
      exercise of such options or warrants, (iv) the issuance of Common Stock or
      securities exercisable for or convertible into Common Stock in connection with
      a
      merger, acquisition or other business combination or a strategic partnering
      or
      joint venture transaction or the exercise or conversion of such securities,
      (v)
      the issuance of Common Stock or securities exercisable for or convertible into
      Common Stock in connection with the settlement of claims which are the subject
      of law suits, arbitrations and similar proceedings or the conversion or exercise
      of such securities, and (vi) the issuance of warrants to equipment lessors
      in
      connection with capital lease transactions or the exercise of such warrants.
      If
      prior to the later of (i) 180 days after the Closing Date or (ii) 90
      days after the effective date of the Shelf Registration Statement described
      in
      the Registration Rights Agreement, the Company consummates a New Transaction
      in
      which it sells or is deemed to sell Common Stock or securities exercisable
      for
      or convertible into Common Stock at a lower price than the Shares, or issues
      warrants with an exercise price lower than the Warrants, then the Company shall
      issue additional shares of Common Stock so that the effective price per share
      for the Shares equals the price of the new shares and if the Company issues
      Warrants, the Warrants will be amended to lower the exercise price of the
      Warrants to the price of the new warrants. 

     

    
      
        
        

      

      
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          13
          -

        
          

        

      

      
        
        

      

    

    
       

      TRANSFER
        AGENT INSTRUCTIONS.

       

    

    nn. The
      Company warrants that, with respect to the Securities, other than the stop
      transfer instructions to give effect to Section 4(a) hereof, it will give its
      transfer agent no instructions inconsistent with instructions to issue Common
      Stock from time to time, including upon exercise of the Warrants in such amounts
      as specified from time to time by the Company to the transfer agent, it being
      understood that Common Stock issued upon the exercise of the Warrants will
      bear
      the restrictive legend specified in Section 4(b) of this Agreement, Registered
      in the name of the Purchaser or its nominee and in such denominations to be
      specified by the Purchaser in connection with each exercise of the Warrants.
      Except as so provided, the Shares shall otherwise be freely transferable on
      the
      books and records of the Company as and to the extent provided in this Agreement
      and the Registration Rights Agreement. Nothing in this Section shall affect
      in
      any way the Purchaser’s obligations and agreement to comply with all applicable
      securities laws upon resale of the Securities. If the Purchaser provides the
      Company with an opinion of counsel reasonably satisfactory to the Company that
      registration of a resale by the Purchaser of any of the Securities in accordance
      with clause (1)(B) of Section 4(a) of this Agreement is not required under
      the
      1933 Act, the Company shall (except as provided in clause (2) of Section 4(a)
      of
      this Agreement) permit the transfer of the Securities and, in the case of the
      Warrant Shares, promptly instruct the Company’s transfer agent to issue one or
      more certificates for Common Stock without legend in such name and in such
      denominations as specified by the Purchaser.

     

    oo. Subject
      to the provisions of this Agreement, the Company will permit the Purchaser
      to
      exercise its right to exercise the Warrant in the manner contemplated by the
      Warrant.

     

    pp. In
      the
      case of a transfer in lieu of delivering physical certificates representing
      the
      Securities, provided the Company’s transfer agent is participating in the
      Depository Trust Company Fast Automated Securities Transfer program, upon
      request of the transferee and its compliance with the provisions contained
      in
      this paragraph, so long as the certificates therefore do not bear a legend
      and
      the transferee is not obligated to return such certificate for the placement
      of
      a legend thereon, the Company shall use its commercially reasonable efforts
      to
      cause its transfer agent to electronically transmit the Common Stock issuable
      to
      the transferee by crediting the account of the transferee’s.

     

     

    
      
        
        

      

      
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          14
          -

        
          

        

      

      
        
        

      

    

    INDEMNIFICATION.
      

    qq. The
      Company agrees to indemnify and hold harmless each Purchaser and its officers,
      directors, employees, and agents, and each Purchaser Control Person from and
      against any losses, claims, damages, liabilities or expenses incurred
      (collectively, “Damages”), and any action in respect thereof to which Purchaser,
      its partners, Affiliates, officers, directors, employees, and duly authorized
      agents, and any such Purchaser Control Person becomes subject to, resulting
      from, arising out of or relating to any misrepresentation, breach of warranty
      or
      nonfulfillment of or failure to perform any covenant or agreement on the part
      of
      Company contained in this Agreement, as such Damages are incurred, except to
      the
      extent such Damages result primarily from Purchaser’s failure to perform any
      covenant or agreement contained in this Agreement or Purchaser’s or its
      officers’, directors’, employees’, agents’ or Purchaser Control Persons’
negligence, recklessness or bad faith in performing its obligations under this
      Agreement.

     

    rr. The
      Purchaser agrees to indemnify and hold harmless the Company and its officers,
      directors, employees, and agents, and each person deemed in control of the
      Company pursuant to Rule 405 under the 1933 Act, or section 20 of the 1934
      Act,
      from and against any Damages, and any action in respect thereof to which the
      Company, its partners, Affiliates, officers, directors, employees, and duly
      authorized agents, and any such control person becomes subject to, resulting
      from, arising out of or relating to any misrepresentation, breach of warranty
      or
      nonfulfillment of or failure to perform any covenant or agreement on the part
      of
      Purchaser contained in this Agreement, as such Damages are incurred, except
      to
      the extent such Damages result primarily from the Company’s failure to perform
      any covenant or agreement contained in this Agreement or the Company or its
      officers’, directors’, employees’, agents’ or such control persons’ negligence,
      recklessness or bad faith in performing its obligations under this
      Agreement.

     

    JURY
      TRIAL WAIVER.
      The
      Company and the Purchaser hereby waive a trial by jury in any action, proceeding
      or counterclaim brought by either of the Parties hereto against the other in
      respect of any matter arising out or in connection with the Transaction
      Agreements.

     

    GOVERNING
      LAW: MISCELLANEOUS.

     

    ss. This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of Colorado for contracts to be wholly performed in such state and
      without giving effect to the principles thereof regarding the conflict of laws.
      The Company and each Purchaser hereby submit to the jurisdiction of any state
      court of competent jurisdiction in and for Arapahoe County, Colorado, or in
      the
      United States District Court for Colorado sitting at Arapahoe County, Colorado
      in any action or proceeding arising out of or relating to this Agreement and
      agree that all claims in respect of the action or proceeding may be heard and
      determined in any such court; agree not to bring any action or proceeding
      arising out of or relating to this Agreement in any other court; waive any
      defense of inconvenient forum to the maintenance of any action
      or
      proceeding so brought and waive any bond, surety, or other security that might
      be required of any other party with respect thereto; and agree that a final
      judgment in any action or proceeding so brought shall be conclusive and may
      be
      enforced by suit on the judgment or in any other manner provided by law or
      in
      equity.

     

    
      
        
        

      

      
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          15
          -

        
          

        

      

      
        
        

      

    

    

     

    tt. Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

     

    uu. This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      assigns of each of the parties hereto.

     

    vv. All
      pronouns and any variations thereof refer to the masculine, feminine or neuter,
      singular or plural, as the context may require.

     

    ww. A
      facsimile transmission of this signed Agreement shall be legal and binding
      on
      all parties hereto.

     

    xx. This
      Agreement may be signed in one or more counterparts, each of which shall be
      deemed an original.

     

    yy. The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement.

     

    zz. If
      any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement or the validity or
      enforceability of this Agreement in any other jurisdiction.

     

    aaa. This
      Agreement may be amended only by an instrument in writing signed by the party
      to
      be charged with enforcement thereof.

     

    bbb. This
      Agreement supersedes all prior agreements and understandings among the parties
      hereto with respect to the subject matter hereof.

     

    NOTICES.
      Any
      notice required or permitted hereunder shall be given in writing (unless
      otherwise specified herein) and shall be deemed effectively given on the
      earliest of:

     

    ccc. the
      date
      delivered, if delivered by personal delivery as against written receipt
      therefore or by confirmed facsimile transmission,

     

    ddd. the
      seventh business day after deposit, postage prepaid, in the United States Postal
      Service by registered or certified mail, or

     

    eee. the
      third
      business day after mailing by domestic or international express courier, with
      delivery costs and fees prepaid,

     

    in
      each
      case, addressed to each of the other parties thereunto entitled at the following
      addresses (or at such other addresses as such party may designate by ten (10)
      days’ advance written notice similarly given to each of the other parties
      hereto):

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

    

    

    Company:        Zynex
      Medical Holdings, Inc.

    8100
      Southpark Way, Suite A-9

    Littleton,
      CO 80120

    Attn:
      Peter J. Leveton

    Fax:
      (800) 495-6695

    

    with
      a
      copy to:

    

    Holland
      & Hart LLP

    555
      Seventeenth Street

    Suite
      3200

    Denver,
      CO 80202

    Attn:
      Mark R. Levy

    Fax:
      (303) 295-8261

    

    

    Purchaser: To
      the
      addresses set forth on the signature page to this Agreement

    

    with
      a
      copy to:

    

    Chicago
      Investment Group, L.L.C.

    190
      South
      La Salle Street, Suite 850

    Chicago,
      IL 60603

    Attention:
      Stuart Fuchs   

     

    SURVIVAL
      OF REPRESENTATIONS AND WARRANTIES.
      The
      Company’s and the Purchaser’ representations and warranties herein shall survive
      the execution and delivery of this Agreement and the delivery of the
      Certificates and the payment of the Purchase Price, and shall inure to the
      benefit of the Purchaser and the Company and their respective successors and
      assigns.

     

     

    
 

    

    

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK]

     

     

     

    
 

    
      
        
        

      

      
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          17
          -

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      this
      Securities Purchase Agreement has been duly executed by the Purchaser as of
      the
      date set forth below.

    

    

    
      	 	
               

            
	 	 
	 	
              By:
                _______________________________

            
	 	
              Name:_____________________________

            
	 	
              Title:
                ______________________________

            
	 	
              Address::
                __________________________

            
	 	
               

            
	 	
               

            

    

    

     

    
      	 	
              __________________________________

            
	 	
              
                __________________________________

              

            
	 	
              
                __________________________________

              

            
	 	
              
                __________________________________

              

            
	 	
              
                __________________________________

              

            
	 	
              
                __________________________________

              

            
	 	 
	 	 

    

    

    

    As
      of the
      date set forth below, the undersigned hereby accepts this Agreement and
      represents that the foregoing statements are true and correct and that it has
      caused this Securities Purchase Agreement to be duly executed on its
      behalf.

    

    

    ZYNEX
      MEDICAL HOLDINGS, INC.

    

    

    By:
      ____________________________________

     

    Name:__________________________________       

    

    Title:____________________________________

    

    

     

     

    -
      18 -Exhibit 10.2

     

    
      

      

    

     

    Exhibit
      10.2

    REGISTRATION
      RIGHTS AGREEMENT

    

    

    This
      Registration
      Rights Agreement
      (this
“Agreement”) is made and entered into as of _______, 2006 (the “Effective
      Date”), among Zynex
      Medical Holdings Inc.,
      a
      Nevada corporation (the “Company”) and ________ or his designees (the
“Purchaser”). Capitalized terms not otherwise herein defined shall have the
      meanings ascribed to them in the Securities Purchase Agreement between the
      Company and the Purchaser dated _______, 2006, as may be amended from time
      to
      time (the “Purchase Agreement”).

     

    RECITALS

    

    WHEREAS,
      the
      Purchaser has entered into the Purchase Agreement with the Company pursuant
      to
      which the Purchaser has agreed to purchase Common Stock in the amount set forth
      in such Purchase Agreement (the “Shares”). Pursuant to the Purchase Agreement,
      the Company has also agreed to issue Warrants to the Purchaser to purchase
      Common Stock in the amount set forth in the Purchase Agreement (the “Warrant
      Shares”).

     

    WHEREAS,
      as a
      condition to the purchase of the Common Stock and the potential exercise of
      Warrants by the Purchaser, the parties have agreed to enter into this
      Agreement.

     

    AGREEMENT

    

    THEREFORE,
      the parties hereto, in consideration of the foregoing, the mutual covenants
      and
      agreements hereinafter set forth, and other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, agree as
      follows:

     

    
      	 	
              1.

            	
              Definitions
                and Interpretation

            

    

     

    a. Certain
      Definitions

     

    As
      used
      in this Agreement, the following capitalized terms shall have the following
      meanings:

     

    (i) “1933
      Act” means the Securities Act of 1933, as amended.

     

    (ii) “1934
      Act” means the Securities Exchange Act of 1934, as amended.

     

    (iii) “Common
      Stock” means shares of the Company’s Common Stock, $.001 par value.

     

    
      
         

      

      
        -
          1
          -

        
          

        

      

      
         

      

    

    (iv) “Other
      Purchasers” means other parties that purchased Securities from the Company on
      substantially the same terms and in the same offering by the Company and Broker
      as the Securities are being purchased by the Purchaser.

     

    (v) “Registrable
      Securities” means (i) the Shares, (ii) the Warrant Shares and (iii) any shares
      or other securities of the Company issued or issuable with respect thereto
      upon
      any stock split, stock dividend, recapitalization or similar event, excluding
      shares or other securities sold or transferred pursuant to an effective
      registration statement, sold or otherwise transferred pursuant to Rule 144
      under
      the 1933 Act, sold or otherwise transferred pursuant to a transfer not requiring
      registration under the 1933 Act, held by Purchaser or an Other Purchaser who
      at
      such time is not an Affiliate of the Company and that are eligible for sale
      pursuant to Rule 144(k) under the 1933 Act, and held by Purchaser or an Other
      Purchaser who at such time is an Affiliate of the Company if all of such shares
      or other securities are eligible for sale pursuant to Rule 144 under the 1933
      Act and could be sold in one transaction in accordance with the volume
      limitations contained in Rule 144(e)(1)(i) under the 1933 Act.

     

    (vi) “Registration
      Expenses” means any and all expenses incident to performance of or compliance
      with this Agreement, including all applicable registration and filing fees
      imposed by the SEC and any securities exchange or market on which the
      Registrable Securities are required to be listed and/or quoted, as the case
      may
      be, all fees and expenses incurred in connection with compliance with state
      securities or “blue sky” laws (including reasonable fees and disbursements of
      counsel) in connection with qualification of any of the Registrable Securities
      under any state securities or blue sky laws, all expenses of any Persons in
      preparing or assisting in preparing, word processing, printing and distributing
      the Registration Statement, any Prospectus, certificates and other documents
      relating to the performance of and compliance with this Agreement, all fees
      and
      expenses incurred in connection with the listing, if any, of any of the
      Registrable Securities on any securities exchange or exchanges, and the fees
      and
      disbursements of counsel for the Company and of the independent public
      accountants of the Company. Registration Expenses shall specifically exclude
      underwriting discounts and commissions, the fees and disbursements of counsel
      representing Purchaser or any underwriter or agent acting on behalf of Purchaser
      (other than the Broker), and transfer taxes, if any, relating to the sale or
      disposition of Registrable Securities by Purchaser, all of which shall be borne
      by Purchaser in all cases.

     

    (vii) “Registration
      Statement” means a registration statement of the Company (and any other entity
      required to be a registrant pursuant to the requirements of the 1933 Act)
      covering all or a part of the Registrable Securities under the 1933 Act for
      which the Company is eligible, including all amendments (including
      post-effective amendments), exhibits and materials incorporated by reference
      therein.

     

    
      
         

      

      
        -
          2
          -

        
          

        

      

      
         

      

    

    (viii) “SEC”
      means the United States Securities and Exchange Commission.

     

    (ix) “Selling
      Expenses” shall mean all underwriting discounts and selling commissions
      applicable to the sale of Registrable Securities and all fees and disbursements
      of counsel for the Purchaser.

     

    (x) “Shelf
      Registration Statement” shall mean a Registration Statement on Form SB-2 (or any
      successor form) filed pursuant to Rule 415 of Regulation C promulgated under
      the
      1933 Act (or any successor rule) covering the Shares and the Warrant
      Shares.

     

    b. Rules
      of
      Interpretation

     

    (i) Each
      term
      defined in the singular form in Section 1.a or elsewhere in this Agreement
      means
      the plural thereof whenever the plural form is used, and each term defined
      in
      the plural form means the singular thereof whenever the singular form is used.
      The use of a pronoun of any gender is applicable to all genders.

     

    (ii) Unless
      otherwise specified therein, all terms defined in this Agreement have the
      meanings as so defined herein when used in any other certificate, report or
      document made or delivered pursuant hereto.

     

    (iii) A
      reference to any agreement, document or instrument refers to the agreement,
      document or instrument as amended or modified and in effect from time to time
      in
      accordance with the terms thereof and as permitted herein.

     

    (iv) Except
      as
      otherwise specified, a reference to any applicable law refers to the law as
      amended, modified, codified, replaced or reenacted, in whole or in part, and
      in
      effect from time to time, and to any rules and regulations promulgated
      thereunder; and a reference to any section or other provision of any applicable
      law refers to that provision of the law from time to time in effect and
      constituting the substantive amendment, modification, codification, replacement
      or reenactment of the referenced section or other provision.

     

    c. Construction
      

     

    The
      headings preceding the text of the sections of this Agreement and the exhibits
      hereto are for convenience only and shall not be deemed part of this Agreement.
      The language used in this Agreement shall be deemed to be the language chosen
      by
      the parties to this Agreement to express their mutual intent, and no rule of
      strict construction shall be applied against any party.

     

    
      
         

      

      
        -
          3
          -

        
          

        

      

      
         

      

    

    2. Registration
      Rights

     

    a. Agreement
      to Register Registrable Securities

     

    (i) The
      Company shall use its commercially reasonable efforts to (a) file within ninety
      (90) days of the Closing Date a Shelf Registration Statement to register 100%
      of
      the Registrable Securities issued to the Purchaser in connection with the
      Purchase Agreement and the Registrable Securities issued to the Other
      Purchasers, and thereafter to cause the Shelf Registration Statement to be
      declared effective by the SEC as to resales by the Purchasers and the Other
      Purchasers; and (b) cause the Shelf Registration Statement to remain
      effective for the shorter of the period expiring (A) twenty-four (24) months
      following the Closing Date or (B) the date on which all shares comprising the
      Registrable Securities of the Purchaser and the other Purchasers may be sold
      pursuant to Rule 144 under the 1933 Act in any three-month period in one
      transaction in accordance with the volume limitations contained in Rule
      144(e)(1)(i). The Company shall promptly: (x) notify the Purchaser after it
      has received notice of the time when the Shelf Registration Statement has been
      declared effective or any supplement to any prospectus forming a part of the
      Shelf Registration Statement has been filed; (y) notify the Purchaser of
      any request by the SEC for the amending or supplementing of the Shelf
      Registration Statement or prospectus or if additional information is required
      to
      be filed in connection with the Shelf Registration Statement, and shall use
      its
      commercially reasonable efforts to prepare and file with the SEC such amendment
      or supplement or such additional information; and (z) notify the Purchaser
      of
      the Company’s receipt of, or knowledge of the issuance of, any stop order by the
      SEC suspending the effectiveness of any the Shelf Registration Statement and
      use
      the Company’s commercially reasonable efforts to prevent the issuance of any
      stop order or to obtain its withdrawal if such stop order has been issued.
      The
      Purchaser shall not, nor shall the Purchaser be entitled to, resell any such
      shares in reliance upon the Shelf Registration Statement after the Shelf
      Registration Statement is no longer effective.

     

    (ii) Notwithstanding
      subsection (i) above, the Company shall not be required to take any action
      with
      respect to the registration or the declaration or continuation of effectiveness
      of the Shelf Registration Statement for a period not to exceed sixty (60) days
      (a “Suspension Period”) following notice to the Purchaser and the Other
      Purchasers from the Company (a “Suspension Notice”) of the Company’s
      determination in good faith of the existence of any state of facts or the
      happening of any event (including without limitation pending negotiations
      relating to, or the consummation of a transaction, or the occurrence of any
      event which in the opinion of the Company might require additional disclosure
      of
      material, non-public information by the Company in the Shelf Registration
      Statement as to which the Company believes it has a bona fide business purpose
      for preserving confidentiality or which renders the Company unable to comply
      with the published rules and regulations of the SEC promulgated under the
      Securities Act or the Exchange Act, as in effect at any relevant time) which
      might reasonably result in (a) the Shelf Registration Statement, any
      amendment or post-effective amendment thereto, or any document

     

    
      
         

      

      
        -
          4
          -

        
          

        

      

      
         

      

    

    incorporated
      therein by reference containing an untrue statement of a material fact or
      omitting to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, or (b) the prospectus issued
      under the Shelf Registration Statement, any prospectus supplement, or any
      document incorporated therein by reference including an untrue statement of
      material fact or omitting to state a material fact necessary in order to make
      the statements therein, in the light of the circumstances under which they
      were
      made, not misleading. Upon receipt of a Suspension Notice from the Company,
      the
      Purchaser will forthwith discontinue disposition of all such shares pursuant
      to
      the Shelf Registration Statement until receipt from the Company of copies of
      prospectus supplements or amendments prepared by or on behalf of the Company,
      together with a notification that the Suspension Notice is no longer in effect,
      and, if so directed by the Company, the Purchaser will deliver to the Company
      all copies in their possession of the prospectus covering such shares current
      at
      the time of receipt of any Suspension Notice. No more than two (2) such
      Suspension Periods shall occur in any twelve (12) month period. In the event
      that the Company shall exercise its right to delay or suspend the filing or
      effectiveness of the Shelf Registration hereunder, the applicable time period
      during which the Shelf Registration Statement is to remain effective shall
      be
      extended by a period of time equal to the duration of the Suspension
      Period.

     

    (iii) The
      Purchaser shall complete the Selling Security Holder Notice and Questionnaire
      to
      be distributed after the Closing Date. The Purchaser shall notify the Company
      as
      promptly as practicable of any inaccuracy or change in information previously
      furnished by the Purchaser to the Company or of the occurrence of any event
      as a
      result of which any prospectus included in the Registration Statement contains
      or would contain an untrue statement of a material fact regarding the
      Purchaser’s intended method of distribution of shares of the Company Stock or
      omits to state any material fact regarding the Purchaser’s intended method of
      distribution of shares of the Company Stock necessary to make the statements
      therein, in light of the circumstances then existing, not misleading, and
      promptly to furnish to the Company any additional information required to
      correct and update any previously furnished information or required so that
      such
      prospectus shall not contain, with respect to the Purchaser or the distribution
      of such shares, an untrue statement of a material fact or omit to state a
      material fact necessary to make the statements therein, in light of the
      circumstances then existing, not misleading.

     

    b. All
      Registration Expenses incurred in connection with any registration,
      qualification or compliance pursuant to this Section 2 shall be borne by the
      Company, and all Selling Expenses shall be borne by the Purchaser and the Other
      Purchasers pro rata on the basis of the number of their Registrable Securities
      so registered.

     

    c. At
      its
      expense, for two years after the Closing Date the Company will:

     

    (i) Prepare
      and file with the SEC such amendments and supplements to the Shelf Registration
      Statement and the

     

    
      
         

      

      
        -
          5
          -

        
          

        

      

      
         

      

    

    prospectus
      used in connection with such registration statement as may be necessary to
      comply with the provisions of the 1933 Act with respect to the disposition
      of
      all securities covered by such Shelf Registration Statement for the period
      set
      forth in subsection (a) above.

     

    (ii) Furnish
      such number of prospectuses and other documents incident thereto, including
      any
      amendment of or supplement to the prospectus, as a Purchaser from time to time
      may reasonably request;

     

    (iii) Cause
      all
      such Registrable Securities to be listed on each securities exchange on which
      similar securities issued by the Company are then listed;

     

    (iv) Provide
      a
      transfer agent and registrar for all Registrable Securities and a CUSIP number
      for all such Registrable Securities, in each case not later than the effective
      date of such registration;

     

    d. With
      a
      view to making available the benefits of certain rules and regulations of the
      SEC which may permit the sale of the Restricted Securities to the public without
      registration, so long as the Purchaser owns any Registrable Securities, the
      Company agrees to:

     

    (i) Use
      its
      commercially reasonable efforts to make and keep public information available
      as
      those terms are understood and defined in Rule 144 under the 1933 Act, as
      provided in Section 4(d) of the Purchase Agreement;

     

    (ii) Use
      its
      commercially reasonable efforts to file with the SEC in a timely manner all
      reports and other documents required of the Company under the 1933 Act and
      the
      1934 Act;

     

    (iii) Furnish
      forthwith upon request by the Purchaser or its assignees a written statement
      by
      the Company as to its compliance with the reporting requirements of Rule 144
      (at
      any time from and after ninety (90) days following the effective date of the
      first registration statement filed by the Company for an offering of its
      securities to the general public), and of the 1933 Act and the 1934 Act (at
      any
      time after it has become subject to such reporting requirements), a copy of
      the
      most recent annual or quarterly report of the Company, and such other reports
      and documents so filed as a Purchaser may reasonably request in availing itself
      of any rule or regulation of the SEC allowing a Purchaser to sell any such
      securities without registration.

     

    e. The
      rights to have the Company register Registrable Securities under this Section
      2
      may be transferred or assigned by Purchaser to a transferee or assignee of
      Registrable Securities, provided that the transferee or assignee (i) is a
      family member of the Purchaser or trust or other entity for the benefit of
      the
      Purchaser or its family or (ii) is acquiring a majority of the Purchaser’s
      Registrable Securities, and, provided, further, that the Company is
      given

     

    
      
         

      

      
        -
          6
          -

        
          

        

      

      
         

      

    

    written
      notice at the time of or within a reasonable time after said transfer or
      assignment, stating the name and address of said transferee or assignee and
      identifying the securities with respect to which such registration rights are
      being transferred or assigned. 

     

    f. Duties
      of
      Purchaser. 

     

    In
      connection with and as a condition to the Company’s obligations with respect to
      the Shelf Registration Statement, each Purchaser covenants and agrees
      that:

     

    (i) it
      will
      not offer or sell any Registrable Securities under the Shelf Registration
      Statement until it has received notice from the Company that the Shelf
      Registration Statement and any post-effective amendments thereto have become
      effective;

     

    (ii) upon
      receipt of any notice from the Company contemplated by Section 2a(ii), Purchaser
      shall not offer or sell any Registrable Securities pursuant to the Registration
      Statement until, in the sole discretion of the Company, the event no longer
      precludes sale or Purchaser receives copies of the supplemented or amended
      Prospectus contemplated by Section 2a(ii) and receives notice that any
      post-effective amendment has become effective, and, if so directed by the
      Company, such Purchaser will deliver to the Company (at the expense of the
      Company) all copies in its possession, other than permanent file copies then
      in
      such Purchaser’s possession, of the Prospectus as amended or supplemented at the
      time of receipt of such notice; and

     

    (iii) the
      Purchaser and any of its officers, directors or affiliates, if any, shall comply
      with the provisions of Regulation M under the 1934 Act, or any successor
      regulations, as applicable to them in connection with sales of Registrable
      Securities pursuant to the Registration Statement and shall enter into such
      written agreements as the Company shall request to ensure compliance with this
      Section.

     

    g.
      The
      Company may immediately terminate any Registration Statement as to the
      Purchaser, and this Agreement shall cease to be in effect, if the Purchaser
      has
      engaged in any hedging transactions or shorting transactions in violation of
      Section 2 of the Purchase Agreement or Section 4(b) of this
      Agreement.

     

    h.
      The
      Purchaser hereby agrees and acknowledges that the Shelf Registration Statement
      may cover securities of the Company to be resold by any other persons or
      entities, including Other Purchasers.

     

    
      
         

      

      
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          7
          -

        
          

        

      

      
         

      

    

    3. Indemnification;
      Contribution

     

    a. Indemnification
      by the Company

     

    The
      Company agrees to indemnify and hold harmless each Purchaser and its officers
      and directors and each Person, if any, who controls any Purchaser within the
      meaning of Section 15 of the 1933 Act as follows:

     

    (i) against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      to which such Purchaser, officer, director or controlling Person may become
      subject under the 1933 Act or otherwise that arise out of or are based upon
      any
      untrue statement or alleged untrue statement of a material fact contained in
      any
      Registration Statement or any amendment thereto, or the omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein not misleading or that arise out of
      or
      are based upon any untrue statement or alleged untrue statement of a material
      fact contained in any Prospectus or any amendment or supplement thereto, or
      the
      omission or alleged omission to state therein a material fact necessary in
      order
      to make the statements therein, in the light of the circumstances under which
      they were made, not misleading;

     

    (ii) against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      to the extent of the aggregate amount paid in settlement of any litigation,
      or
      incurred in connection with any investigation or proceeding by any governmental
      agency or body, commenced or threatened, or of any claim whatsoever based upon
      any such untrue statement or alleged untrue statement or any omission or alleged
      omission contained in any Registration Statement; and

     

    (iii) subject
      to the limitations set forth in Section 4.01(e), against any and all expense
      whatsoever, as incurred (including reasonable fees and disbursements of
      counsel), reasonably incurred in investigating, preparing or defending against
      any litigation, or investigation or proceeding by any governmental agency or
      body, commenced or threatened, in each case whether or not a party, or any
      claim
      whatsoever based upon any such untrue statement or alleged untrue statement
      or
      omission or alleged omission, to the extent that any such expense is not paid
      under Sections or;

     

    (iv) any
      violation by the Company of any rule or regulation promulgated under the 1933
      Act applicable to the Company in connection with any registration,
      qualification, or compliance of the Registrable Securities or any other capital
      stock of the Company;

     

    (v) provided,
      however, that the indemnity provided pursuant to this Section shall not apply
      to
      any amounts paid in settlement of any such loss, liability, claim, damage or
      expense if such settlement is effected without the consent of the Company (which
      consent shall not be unreasonably

     

    
      
         

      

      
        -
          8
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    delayed
      or withheld), or to any Purchaser with respect to any of the foregoing in this
      Section that arises out of or is based upon any untrue statement or alleged
      untrue statement or omission or alleged omission made in reliance upon and
      in
      conformity with written information furnished to the Company by such Purchaser
      expressly for use in any Registration Statement or any amendment thereto or
      the
      prospectus or any amendment or supplement thereto, or the Purchaser’s or an
      underwriter’s failure to deliver a copy of any Registration Statement or
      prospectus or any amendments or supplements thereto after the Company has
      furnished the Purchaser or underwriter with the requested number of copies
      of
      the same.

     

    b. Indemnification
      by Purchaser

     

    Each
      Purchaser severally agrees to indemnify and hold harmless the Company and the
      other selling Purchaser, and each of their respective directors and officers
      (including each director and officer of the Company who signed the Registration
      Statement), and each Person, if any, who controls the Company or any other
      selling Purchaser within the meaning of Section 15 of the 1933 Act, to the
      same
      extent as the indemnity contained in Section 3(a), but only insofar as such
      loss, liability, claim, damage or expense arises out of or is based upon any
      untrue statement or alleged untrue statement or omission or alleged omission
      made in any Registration Statement or any amendment thereto or the prospectus
      or
      any amendment or supplement thereto in reliance upon and in conformity with
      written information furnished to the Company by such selling Purchaser for
      use
      therein relating to the Purchaser’s status as a selling security Purchaser,
      Purchaser’s failure to deliver a copy of any Registration Statement or
      prospectus or any amendments or supplements thereto, to the extent such delivery
      is required to be made by Purchaser and after the Company has furnished
      Purchaser with the requested number of copies of the same, or the breach of
      any
      covenant contained in Section 2(a)(iii) or 2(f) hereof.

     

    c. Conduct
      of Indemnification Proceedings

     

    Each
      indemnified party shall give reasonably prompt notice to each indemnifying
      party
      of any action or proceeding commenced against the indemnified party in respect
      of which indemnity may be sought hereunder, but failure to so notify an
      indemnifying party shall not relieve it from any liability which it may have
      under the indemnity agreement provided in Sections 3a or 3b, unless and to
      the
      extent it did not otherwise learn of such action and the lack of notice by
      the
      indemnified party materially prejudices the indemnifying party or results in
      the
      forfeiture by the indemnifying party of substantial rights and defenses and
      shall not, in any event, relieve the indemnifying party from any obligations
      to
      any indemnified party other than the indemnification obligation provided under
      Sections 3a or b above. After receipt of such notice, the indemnifying party
      shall be entitled to participate in and, at its option, jointly with any other
      indemnifying party so notified, to assume the defense of such action or
      proceeding at such indemnifying party’s own expense with counsel chosen by such
      indemnifying party and approved by the indemnified party, which approval shall
      not be unreasonably withheld; provided, however, that, if the defendants in
      any
      such action or

     

    
      
         

      

      
        -
          9
          -

        
          

        

      

      
         

      

    

    proceeding
      include both the indemnified party and the indemnifying party and the
      indemnified party reasonably determines, upon advice of counsel, that a conflict
      of interest exists or that there may be legal defenses available to it or other
      indemnified parties that are different from or in addition to those available
      to
      the indemnifying party, then the indemnified party shall be entitled to one
      separate counsel, the reasonable fees and expenses of which shall be paid by
      the
      indemnifying party. If the indemnifying party does not assume the defense of
      any
      such action or proceeding, after having received the notice referred to in
      the
      first sentence of this paragraph, the indemnifying party will pay the reasonable
      fees and expenses of counsel (which shall be limited to a single law firm)
      for
      the indemnified party. Notwithstanding the foregoing, in no event shall the
      Company be obligated to pay or otherwise be responsible for the fees and
      expenses of more than one legal counsel that represents one Purchaser as the
      indemnified party and any Other Purchasers. In such event, however, the
      indemnifying party will not be liable for any settlement effected without the
      written consent of such indemnifying party. If the indemnifying party assumes
      the defense of any such action or proceeding in accordance with this paragraph,
      such indemnifying party shall not be liable for any fees and expenses of counsel
      for the indem¬nified party incurred thereafter in connection with such action or
      proceeding except as set forth in the proviso in the second sentence of this
      Section.

     

    d. Contribution

     

    (i) In
      order
      to provide for just and equitable contribution in circumstances in which the
      indemnity agreement provided for in this Section 3 is for any reason held to
      be
      unenforceable although applicable in accordance with its terms, the Company
      and
      the selling Purchaser shall contribute to the aggregate losses, liabilities,
      claims, damages and expenses of the nature contemplated by such indemnity
      agreement incurred by the Company and the selling Purchaser, in such proportion
      as is appropriate to reflect the relative fault of and benefits to the Company
      on the one hand and the selling Purchaser on the other (in such proportions
      that
      the selling Purchaser are severally, not jointly, responsible for the balance),
      in connection with the statements or omissions which resulted in such losses,
      claims, damages, liabilities or expenses, as well as any other relevant
      equitable considerations. The relative benefits to the indemnifying party and
      indemnified parties shall be determined by reference to, among other things,
      the
      total proceeds received by the indemnifying party and indemnified parties in
      connection with the offering to which such losses, claims, damages, liabilities
      or expenses relate. The relative fault of the indemnifying party and indemnified
      parties shall be determined by reference to, among other things, whether the
      action in question, including any untrue or alleged untrue statement of a
      material fact or omission or alleged omission to state a material fact, has
      been
      made by, or relates to information supplied by, such indemnifying party or
      the
      indemnified parties, and the parties’ relative intent, knowledge, access to
      information and opportunity to correct or prevent such action.

     

    (ii) Notwithstanding
      the foregoing, no Person guilty of fraudulent misrepresentation (within the
      meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
      from
      any Person who

     

    
      
         

      

      
        -
          10
          -

        
          

        

      

      
         

      

    

    was
      not
      guilty of such fraudulent misrepresentation. For purposes of this Section
      3(d)(ii), each Person, if any, who controls a Purchaser within the meaning
      of
      Section 15 of the 1933 Act and directors and officers of a Purchaser shall
      have
      the same rights to contribution as such Purchaser, and each director of the
      Company, each officer of the Company who signed the Registration Statement
      and
      each Person, if any, who controls the Company within the meaning of Section
      15
      of the 1933 Act shall have the same rights to contribution as the
      Company.

     

    e. Survival
      of Provisions

     

    The
      obligations of the Company and Purchaser under this Section shall survive
      completion of any offering of Registrable Securities in a Registration Statement
      and the termination of this agreement. No indemnifying party, in the defense
      of
      any such claim or litigation, shall, except with the consent of each indemnified
      party, consent to entry of any judgment or enter into any settlement which
      does
      not include as an unconditional term thereof the giving by the claimant or
      plaintiff to such indemnified party of a release from all liability in respect
      to such claim or litigation.

     

    
      	 	
              4.

            	
              Transfer
                of Shares

            

    

     

    a. Purchaser
      agrees not to make any disposition of all or any portion of the Common Stock
      or
      Registrable Securities unless and until:

     

    (i) there
      is
      then in effect a registration statement under the 1933 Act covering such
      proposed disposition and such disposition is made in accordance with such
      registration statement; or 

     

    (ii) the
      Purchaser shall have notified the Company of the proposed disposition and
      furnished the Company with a statement of the circumstances surrounding the
      proposed disposition, and if reasonably requested by the Company, an opinion
      of
      counsel reasonably satisfactory to the Company and its counsel that such
      disposition will not require registration of such Registrable Securities under
      the 1933 Act.

     

    b. The
      Purchaser agrees to not engage in hedging activities or engage in short sales
      of
      the Company’s Common Stock for so long as Purchaser owns any Registrable
      Securities.

     

    
      	 	
              5.

            	
              General
                Provisions

            

    

     

    a. Amendments
      and Waivers

     

    The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified, supplemented or waived, nor may consent to departures
      therefrom be given, without the written consent of the Company and the Purchaser
      of a majority of the outstanding Registrable Securities (treating for the
      purpose of such computation the Purchaser of Warrants as the Purchaser of
      Registrable Securities

     

    
      
         

      

      
        -
          11
          -

        
          

        

      

      
         

      

    

    issuable
      upon exercise of the Warrants). Notice of any such amendment, modification,
      supplement, waiver or consent adopted in accordance with this Section shall
      be
      provided by the Company to each Purchaser of Registrable Securities at least
      1
      day prior to the effective date of such amendment, modification, supplement,
      waiver or consent.

     

    b. Successors
      and Assigns

     

    This
      Agreement shall inure to the benefit of and be binding upon the successors,
      assigns and transferees of each of the parties, including subsequent Purchaser
      without the need for an express assignment. If any successor, assignee or
      transferee of any Purchaser shall acquire Registrable Securities, in any manner,
      whether by operation of law or otherwise, such Registrable Securities shall
      be
      held subject to all of the terms of this Agreement, and by taking and holding
      Registrable Securities such Person shall be conclusively deemed to have agreed
      to be bound by all of the terms and provisions hereof.

     

    c. Specific
      Performance

     

    The
      parties hereto acknowledge that there would be no adequate remedy at law if
      any
      party fails to perform any of its obligations hereunder, and accordingly agree
      that each party, in addition to any other remedy to which it may be entitled
      at
      law or in equity, shall be entitled to compel specific performance of the
      obligations of any other party under this Agreement in accordance with the
      terms
      and conditions of this Agreement.

     

    d. Notices

     

    All
      notices, requests, consents and other communications hereunder shall be in
      writing and shall be deemed to have been made (x) upon actual receipt, when
      given by hand or confirmed facsimile or electronic mail transmission, (y) one
      day after delivery to the carrier, when given by overnight delivery service
      or
      (z) two days after mailing, when given by first-class registered or certified
      mail, postage prepaid, return receipt requested; in any case to the following
      address, or to such other address as a party, by notice to the other parties
      given pursuant to this Section , may designate from time to time:

     

    
      	
              (i)

            	
              If
                to Purchaser, to the addresses set forth in Exhibit
                A
                attached hereto, with a copy to the Purchaser, at the address set
                forth in
                the Purchase Agreement.

            	 
	
               

              (ii)

            	
               

              If
                to the Company, to:

               

              Zynex
                Medical Holdings, Inc.

              8100
                Southpark, Suite A-9

              Littleton,
                CO 80120

              Attention:
                Peter J. Leveton

              Facsimile:
                (800) 495-6695

            	 
	 	
              with
                a copy to:

               

              Holland
                & Hart LLP

              555
                Seventeenth Street

              Suite
                3200

              Denver,
                CO 80202

              Attn:
                Mark R. Levy

              Facsimile:
                (303) 295-8261

            	 

    

     

    e. Governing
      Law; Venue of Actions

     

    (i) This
      Agreement shall be governed and construed in accordance with the internal laws
      of the State of Colorado as applied to contracts made and performed within
      the
      State of Colorado, without regard to the principles thereof regarding resolution
      of conflicts of law.

     

    (ii) The
      Company and each Purchaser hereby submit to the jurisdiction of any state court
      of competent jurisdiction in and for Denver, Colorado, or in the United States
      District Court for the District of Colorado sitting at Arapahoe County, Colorado
      in any action or proceeding arising out of or relating to this Agreement and
      agree that all claims in respect of the action or proceeding may be heard and
      determined in any such court; agree not to bring any action or proceeding
      arising out of or relating to this Agreement in any other court; waive any
      defense of inconvenient forum to the maintenance of any action or proceeding
      so
      brought and waive any bond, surety, or other security that might be required
      of
      any other Party with respect thereto; and agree that a final judgment in any
      action or proceeding so brought shall be conclusive and may be enforced by
      suit
      on the judgment or in any other manner provided by law or in
      equity.

     

    f. Entire
      Agreement

     

    This
      Agreement is intended by the parties as a final expression of their agreement
      and intended to be a complete and exclusive statement of the agreement and
      understanding of the parties hereto in respect of the subject matter contained
      herein. This Agreement supersedes all prior agreements and understandings
      between the parties with respect to such subject matter.

     

    g. Severability

     

    
      
         

      

      
        -
          12
          -

        
          

        

      

      
         

      

    

    In
      the
      event one or more of the provisions of this Agreement should, for any reason,
      be
      held to be invalid, illegal or unenforceable in any respect, such invalidity,
      illegality, or unenforceability shall not affect any other provisions of this
      Agreement, and this Agreement shall be construed as if such invalid, illegal
      or
      unenforceable provision had never been contained herein.

     

    h. Counterparts

     

    This
      Agreement may be executed in any number of counterparts and by the parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which taken together shall constitute one and
      the
      same agreement.

     

    

     

    *   signatures
      appear on following page    *

     

    
      
         

      

      
        -
          13
          -

        
          

        

      

      
         

      

    

    SIGNATURES

    

    IN
      WITNESS WHEREOF,
      the
      Company and the Purchaser have executed this Agreement to be as of the Effective
      Date.

     

    

    Zynex
      Medical Holdings, Inc., Nevada
      corporation

    

    By:
      ___________________________     

    Name:_________________________     

    Title:__________________________     

    

    IN
      WITNESS WHEREOF, this
      Registration Rights Agreement has been duly executed by the
      Purchaser.

     

    

    

        
      ___________________________

    

    By:
      ___________________________     

    Name:
      _________________________     

    Title:
      __________________________     

    

    

     

    

    

     

    
      
         

      

      
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          14
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