Document:

Promissory Note

    
      

        
          

          

        

         

        Exhibit
          10.2

         

         

            $
          50,454                                 March
          1,
          2006

         

         

        PROMISSORY
          NOTE

         

         

        ZYNEX
          MEDICAL HOLDINGS, INC.

         

        For
          value
          received, Zynex Medical Holdings, Inc. (“Zynex”) promises to pay to the order of
          Thomas Sandgaard (hereinafter "Holder"), in legal tender, the sum of $50,454
          (which includes principal of $50,000 plus accrued interest of $454 at 8.25%
          per
          annum from January 20, 2006 through February 28, 2006) with interest on
          the
          outstanding balance at the annual rate of 8.25%. This Note commences March
          1,
          2006 (hereinafter "Commencement Date"), and all obligations set forth herein
          are
          measured from this date. This Note will be repaid in equal monthly payments
          of
          principal and interest of $2,287.65, with the first payment due March 31,
          2006,
          and each additional payment due on the last day of the next following month
          until paid in full; all principal and interest shall be fully repaid no
          later
          than 24 months after the Commencement Date. The note may be prepaid without
          penalty at Zynex’s option at any time. 

        

        In
          the
          event of a default under the terms of this Note, upon ten days following
          written
          demand by Holder of this Note to cure such default, and such default having
          not
          been cured, Holder may, at Holder's sole and absolute discretion, declare
          all
          remaining principal and interest immediately due and payable. Waiver by
          Holder
          hereof to enforce any provisions of this Note shall not operate to bar
          Holder's
          rights to enforce any provisions of this Note at any later time or for
          any later
          default. 

        

        All
          notices, payments and performance of the obligations under this Note shall
          be
          made at 1175 Castle Pointe Road, Castle Rock, CO 80104 or such other location
          as
          the holder may notify Zynex in writing. All notices or demands to the Company
          shall be given in writing to the Company’s principal office location at 8100
          Southpark Way ,Suite A-9, Littleton, Colorado 80120. Notices to all parties
          will
          be deemed provided when actually received by the other party. 

        

        This
          Note
          shall be governed and interpreted under the laws of the State of Colorado.
          

        

        

        
          	
                   Zynex
                    Medical Holdings, Inc.

                	
                   

                	
                   

                	
                   

                
	
                   

                	
                   

                	
                   

                	
                   

                
	
                  /s/ Peter
                    J. Leveton

                	
                   

                	
                   

                	
                   

                
	
                  Zynex
                    Medical Holdings, Inc.

                	 	 	 
	
                  Peter
                    J. Leveton

                  Chief
                    Financial OfficerPromissory Note

    

      
        

        

      

       

      Exhibit
        10.3

       

       

      

       

       

      DEMAND
        PROMISSORY NOTE

       

       

      ZYNEX
        MEDICAL HOLDINGS, INC.

       

       

              $23,003.84                     Date:
        June 30,
        2006

       

       

      

       

       

      FOR
        VALUE
        RECEIVED, the undersigned promises to pay within ten (10) days of demand
        to the
        order of Thomas Sandgaard or any holder thereof the sum of twenty three
        thousand, three dollars and eighty four cents ($23,003.84), together with
        interest of 8.25% per annum from July 1, 2006 until paid. .

       

       

      Upon
        default in making payment within 10 days of demand, and providing this note
        is
        turned over for collection, Zynex agrees to pay all reasonable legal fees
        and
        costs of collection to the extent permitted by law. This note shall be enforced
        in accordance with the laws of the State of Colorado. All parties to this
        note
        waive presentment, notice of non-payment, protest and notice of protest,
        and
        agree to remain fully bound notwithstanding extension or modification of
        terms.

       

       

      All
        notices, payments and performance of the obligations under this Note shall
        be
        made at 1175 Castle Pointe Road, Castle Rock, CO 80104 or such other location
        as
        the holder may notify Zynex in writing. All notices or demands to the Company
        shall be given in writing to the Company’s principal office location at 8100
        Southpark Way ,Suite A-9, Littleton, Colorado 80120. Notices to all parties
        will
        be deemed provided when actually received by the other party. 

      

       

       

      

      
        	
                 Zynex
                  Medical Holdings, Inc.

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                /s/ Peter
                  J. Leveton

              	
                 

              	
                 

              	
                 

              
	
                By:Peter
                  J. Leveton

                Chief
                  Financial OfficerExhibit 10.4

    
      
        
          

            
              

              

            

            

            Exhibit
              10.4

            FORM
              OF WARRANT

            

            

            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.

             

            ZYNEX
              MEDICAL HOLDINGS, INC.

            

            COMMON
              STOCK PURCHASE WARRANT

            

            1. Issuance;
              Certain Definitions.
              In
              consideration of good and valuable consideration, the receipt of which
              is hereby
              acknowledged by ZYNEX
              MEDICAL HOLDINGS, INC.,
              a
              Nevada corporation (the “Company”), _________ or registered assigns (the
“Holder”) is hereby granted the right to purchase at any time until 5:00 p.m.,
              New York City time, on  _____(the “Expiration Date”), _________ X 0.80
              OR ______ fully paid and nonassessable shares of the Company’s Common
              Stock, $0.001 par value per share (the “Common Stock”), at an initial exercise
              price per share (the “Exercise Price”) of $0.39 per share, subject to further
              adjustment as set forth herein. Capitalized terms not otherwise herein
              defined
              shall have the meanings ascribed to them in the Securities Purchase
              Agreement
              between the Company and the original Holder dated _______, as amended
              from time
              to time (the “Agreement”).

            

            2. Exercise
              of Warrant.
              

            

            2.1 Method
              of Exercise.
              

            

            
              	 	
                      (a)

                    	
                      This
                        Warrant is exercisable in whole or in part at any time and
                        from time to
                        time. Such exercise shall be effectuated by submitting to
                        the Company
                        (either by delivery to the Company or by facsimile transmission
                        as
                        provided in Section 9 hereof) a completed and duly executed
                        Notice of
                        Exercise (substantially in the form attached to this Warrant)
                        as provided
                        in this paragraph. The date such Notice of Exercise is faxed
                        to the
                        Company shall be the “Exercise Date,” provided that the Holder of this
                        Warrant tenders this Warrant Certificate to the Company within
                        five (5)
                        business days thereafter. The Notice of Exercise shall be
                        executed by the
                        Holder of this Warrant and shall indicate the number of shares
                        then being
                        purchased pursuant to such exercise. Upon surrender of this
                        Warrant
                        Certificate, together with appropriate payment of the Exercise
                        Price for
                        the shares of Common Stock purchased, the Holder shall be
                        entitled to
                        receive a certificate or certificates for the shares of Common
                        Stock so
                        purchased.

                    

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            
              	 	
                      (b)

                    	
                      The
                        Holder shall be deemed to be the holder of the shares issuable
                        to it in
                        accordance with the provisions of this Section 2.1 on the
                        Exercise
                        Date

                    

            

            

            2.2 Limitation
              on Exercise.
              Notwithstanding the provisions of this Warrant, the Agreement or of
              the other
              Transaction Agreements, in no event (except (i) as specifically provided
              in this
              Warrant as an exception to this provision, (ii) while there is outstanding
              a
              tender offer for any or all of the shares of the Company’s Common Stock, or
              (iii) at the Holder’s option, on at least sixty-five (65) days’ advance written
              notice from the Holder) shall the Holder be entitled to exercise this
              Warrant,
              or shall the Company have the obligation to issue shares upon such
              exercise of
              all or any portion of this Warrant to the extent that, after such exercise
              the
              sum of (1) the number of shares of Common Stock beneficially owned
              by the Holder
              and its affiliates (other than shares of Common Stock which may be
              deemed
              beneficially owned through the ownership of the unexercised portion
              of the
              Warrants or other rights to purchase Common Stock), and (2) the number
              of shares
              of Common Stock issuable upon the exercise of the Warrants with respect
              to which
              the determination of this proviso is being made, would result in beneficial
              ownership by the Holder and its affiliates of more than 4.99% of the
              outstanding
              shares of Common Stock (after taking into account the shares to be
              issued to the
              Holder upon such exercise). For purposes of the proviso to the immediately
              preceding sentence, beneficial ownership shall be determined in accordance
              with
              Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“1934
              Act”), except as otherwise provided in clause (1) of such sentence. The
              Holder,
              by its acceptance of this Warrant, further agrees that if the Holder
              transfers
              or assigns any of the Warrants, such assignment shall be made subject
              to the
              transferee’s or assignee’s specific agreement to be bound by the provisions of
              this Section 2.2 as if such transferee or assignee were the original
              Holder
              hereof.

            

            3. Reservation
              of Shares.
              The
              Company hereby agrees that at all times during the term of this Warrant
              there
              shall be reserved for issuance upon exercise of this Warrant such number
              of
              shares of its Common Stock as shall be required for issuance upon exercise
              of
              this Warrant (the “Warrant Shares”).

            

            4. Mutilation
              or Loss of Warrant.
              Upon
              receipt by the Company of evidence satisfactory to it of the loss,
              theft,
              destruction or mutilation of this Warrant, and (in the case of loss,
              theft or
              destruction) receipt of reasonably satisfactory indemnification, and
              (in the
              case of mutilation) upon surrender and cancellation of this Warrant,
              the Company
              will execute and deliver a duplicate Warrant and any such lost, stolen,
              destroyed or mutilated Warrant shall thereupon become void.

            

            5. Rights
              of the Holder.
              The
              Holder shall not, by virtue hereof, be entitled to any rights of a
              stockholder
              in the Company, either at law or equity, and the rights of the Holder
              are
              limited to those expressed in this Warrant and are not enforceable
              against the
              Company except to the extent set forth herein.

            

            6. Protection
              Against Dilution and Other Adjustments.

            

            6.1 Adjustment
              Mechanism.
              Any
              adjustment of the Exercise Price required pursuant to this Section
              6 shall
              affect only the Exercise Price and shall not result in any change in
              the

            number
              of
              shares of Common Stock which may be purchased upon the exercise of
              the Warrant
              after any such adjustment, except as provided in Section 6.2.

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            6.2 Capital
              Adjustments.
              In case
              of any stock split or reverse stock split, stock dividend, reclassification
              of
              the Common Stock, recapitalization, or like capital adjustment affecting
              the
              Common Stock of the Company prior to the exercise of this Warrant or
              its
              applicable portion, the provisions of this Section 6 shall be applied
              as if such
              capital adjustment event had occurred immediately prior to the exercise
              date of
              this Warrant and the original Exercise Price had been fairly allocated
              to the
              stock resulting from such capital adjustment; and in other respects
              the
              provisions of this Section shall be applied in a fair, equitable and
              reasonable
              manner so as to give effect, as nearly as may be, to the purposes
              hereof.

            

            7. Transfer
              to Comply with the Securities Act; Registration Rights.

            

            7.1 Transfer.
              This
              Warrant has not been registered under the Securities Act of 1933, as
              amended,
              (the “Act”) and has been issued to the Holder for investment and not with a view
              to the distribution of either the Warrant or the Warrant Shares. Neither
              this
              Warrant nor any of the Warrant Shares or any other security issued
              or issuable
              upon exercise of this Warrant may be sold, transferred, pledged or
              hypothecated
              in the absence of an effective registration statement under the Act
              relating to
              such security or an opinion of counsel satisfactory to the Company
              that
              registration is not required under the Act. Each certificate for the
              Warrant,
              the Warrant Shares and any other security issued or issuable upon exercise
              of
              this Warrant shall contain a legend on the face thereof, in form and
              substance
              satisfactory to counsel for the Company, setting forth the restrictions
              on
              transfer contained in this Section.

            

            7.2 Registration
              Rights.
              Reference is made to the Registration Rights Agreement. The Company’s
              obligations under the Registration Rights Agreement and the other terms
              and
              conditions thereof with respect to the Warrant Shares, including, but
              not
              necessarily limited to, the Company’s commitment to file a registration
              statement including the Warrant Shares, to have the registration of
              the Warrant
              Shares completed and effective, and to maintain such registration,
              are
              incorporated herein by reference.

            

            8. Early
              Termination.

            

            8.1 Change
              of Control.
              In the
              event of, at any time prior to the Expiration Date, the consolidation
              or merger
              of the Company with or into another corporation (other than a merger
              or other
              transaction solely to effect a reincorporation of the Company into
              another
              state), a transaction or series of transactions to which the Company
              is party
              and in which is in excess of fifty percent of the voting power of the
              Company is
              transferred, or the sale or other disposition of all or substantially
              all the
              properties and assets of the Company in its entirety to any other person
              occurs
              (a “Change of Control”), the Company shall provide to the Holder twenty (20)
              days advance written notice of such consolidation, merger or sale or
              other
              disposition of the Company’s assets, and this Warrant shall terminate and have
              no further force and effect unless exercised upon the occurrence of
              such
              consolidation, merger, or similar transaction, or sale or other disposition
              of
              the Company’s assets.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            8.2 Trading
              Price.
              In the
              event that the Company’s Common Stock trades on the Company’s Principal Trading
              Market at a price equal to or greater than 200% of the Exercise Price
              for any
              ten consecutive trading days prior to the Expiration Date, the Company
              shall
              provide the Holder with written notice of such event and the Holder
              shall have
              30 days from the date of the notice to exercise this Warrant. If the
              Holder
              shall fail to exercise this Warrant prior to the expiration of the
              30 day time
              period, the Warrant shall terminate and have no further force and
              effect.

            

            9. Notices.
              Any
              notice or other communication required or permitted hereunder shall
              be in
              writing and shall be delivered personally, telegraphed, sent by facsimile
              transmission or sent by certified, registered or express mail, postage
              pre-paid.
              Any such notice shall be deemed given when so delivered personally,
              telegraphed,
              telexed or sent by facsimile transmission, or, if mailed, four days
              after the
              date of deposit in the United States mails, as follows:

            

            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

            Fax:
              (303) 295-8261

            

            

            If
              to the
              Holder, to the address listed in the Purchase Agreement. 

            

            Any
              party
              may give notice in accordance with this Section to designate to another
              address
              or person for receipt of notices hereunder.

            

            10. Supplements
              and Amendments; Whole Agreement.
              This
              Warrant may be amended or supplemented only by an instrument in writing
              signed
              by the parties hereto. This Warrant contains the full understanding
              of the
              parties with respect to the subject matter hereof and thereof and there
              are no
              representations, warranties, agreements or understandings other than
              expressly
              contained herein and therein.

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            11. Governing
              Law.
              This
              Warrant shall be deemed to be a contract made under the laws of the
              State of
              Tennessee. The Company and each Holder 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 Colorado District 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.

            

            12. Jury
              Trial Waiver.
              The
              Company and the Holder 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 this
              Warrant.

            

            13. Counterparts.
              This
              Warrant may be executed in any number of counterparts and each of such
              counterparts shall for all purposes be deemed to be an original, and
              all such
              counterparts shall together constitute but one and the same
              instrument.

            

            14. Descriptive
              Headings.
              Descriptive headings of the several Sections of this Warrant are inserted
              for
              convenience only and shall not control or affect the meaning or construction
              of
              any of the provisions hereof.

            

            IN
              WITNESS WHEREOF, the Company has executed this Warrant as of the _____day
              of
              ______, 2006.

             

            ZYNEX
              MEDICAL HOLDINGS, INC.

            

            By: 
              ___________________________ 

            Name: 
              _________________________

                                         
Title: 
              __________________________ 

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            NOTICE
              OF EXERCISE

            

            TO: ZYNEX
              MEDICAL HOLDINGS, INC.

            8100
              Southpark, Suite A-9

            Littleton,
              CO 80120

            Attention:
              Peter J. Leveton

             

            
              	
                      1.

                    	
                      The
                        undersigned hereby elects to purchase ______________ shares
                        (the
                        “Shares”)
                        of the _________________ Stock of Zynex Medical Holdings,
                        Inc. pursuant to
                        the terms of the attached Warrant, and tenders herewith payment
                        of the
                        purchase price in full.

                    

            

             

            
              	
                      2.

                    	
                      Please
                        issue a certificate or certificates representing the Shares
                        in the name of
                        the undersigned or in such other name as is specified
                        below:

                    

            

             

             

            ___________________________________________

            (Print
              Name)

            Address:
              __________________________________________   

            ___________________________________________

             

            
              	
                      3.

                    	
                      The
                        undersigned confirms that the Shares are being acquired for
                        the account of
                        the undersigned for investment only and not with a view to,
                        or for resale
                        in connection with, the distribution thereof and that the
                        undersigned has
                        no present intention of distributing or selling the
                        Shares.

                    

            

             

            __________________________                ________________________________________________

            (Date)                   (Signature)

             

                                               
              ________________________________________________

               (Print
              Name)

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