Document:

exv10w23

 

Exhibit 10.23

SMART MOVE, INC.

2006 EQUITY INCENTIVE PLAN

Adopted by the Board of Directors on February 9, 2006

 

 

SMART MOVE, INC.

2006 EQUITY INCENTIVE PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	1.
	 	Purpose and Objectives	 	 	2	 
	 
	 	 	 	 	 	 
	2.
	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 
	3.
	 	Administration	 	 	4	 
	 
	 	 	 	 	 	 
	4.
	 	Grants	 	 	4	 
	 
	 	 	 	 	 	 
	5.
	 	Shares Subject to the Plan	 	 	4	 
	 
	 	 	 	 	 	 
	6.
	 	Eligibility for Participation	 	 	5	 
	 
	 	 	 	 	 	 
	7.
	 	Options	 	 	5	 
	 
	 	 	 	 	 	 
	8.
	 	Stock Units	 	 	7	 
	 
	 	 	 	 	 	 
	9.
	 	Stock Awards	 	 	8	 
	 
	 	 	 	 	 	 
	10.
	 	Stock Appreciation Rights and Other Stock-Based Awards	 	 	8	 
	 
	 	 	 	 	 	 
	11.
	 	Qualified Performance-Based Compensation	 	 	9	 
	 
	 	 	 	 	 	 
	12.
	 	Deferrals	 	 	10	 
	 
	 	 	 	 	 	 
	13.
	 	Withholding of Taxes	 	 	10	 
	 
	 	 	 	 	 	 
	14.
	 	Transferability of Grants	 	 	10	 
	 
	 	 	 	 	 	 
	15.
	 	Consequences of a Change of Control	 	 	11	 
	 
	 	 	 	 	 	 
	16.
	 	Requirements for Issuance of Shares	 	 	11	 
	 
	 	 	 	 	 	 
	17.
	 	Amendment and Termination of the Plan	 	 	11	 
	 
	 	 	 	 	 	 
	18.
	 	Miscellaneous	 	 	12	 

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SMART MOVE, INC.

2006 EQUITY INCENTIVE PLAN

1. Purpose and Objectives

     The Smart Move, Inc. 2006 Equity Incentive Plan (the “Plan”) is designed to align the
interests of (i) designated employees of Smart Move, Inc. (the “Company”) and its subsidiaries,
(ii) non-employee members of the board of directors of the Company, and (iii) consultants and key
advisors of the Company and its subsidiaries with the interests of the Company’s stockholders and
to provide incentives for such persons to exert maximum efforts for the success of the Company. By
extending the opportunity to receive grants of stock options, stock units, stock awards, stock
appreciation rights and other stock-based awards, the Company believes that the Plan will encourage
the participants to contribute materially to the growth of the Company, thereby benefiting the
Company’s shareholders, and will align the economic interests of the participants with those of the
shareholders. The Plan may furthermore be expected to benefit the Company and its stockholders by
making it possible for the Company to attract and retain the best available talent. The Plan shall
be effective as of February 9, 2006, subject to approval by the shareholders of the Company.

2. Definitions

     Whenever used in this Plan, the following terms will have the respective meanings set forth
below:

     (a) “Board” means the Company’s Board of Directors.

     (b) “Cause” means, except to the extent otherwise specified by the Committee, a finding by the
Committee of a Participant’s incompetence in the performance of duties, disloyalty, dishonesty,
theft, embezzlement, or unauthorized disclosure of customer lists, product lines, processes or
trade secrets of the Employer, individually or as an employee, partner, associate, officer or
director of any organization.

     (c) “Change of Control” shall be deemed to have occurred if:

     (i) Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act)
becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing more than 50% of the voting power of
the then outstanding securities of the Company; provided that a Change of Control shall not
be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of
another corporation and in which the shareholders of the Company, immediately prior to the
transaction, will beneficially own, immediately after the transaction, shares entitling such
shareholders to more than 50% of all votes to which all shareholders of the parent
corporation would be entitled in the election of directors;

     (ii) The consummation of (i) a merger or consolidation of the Company with another
corporation where the shareholders of the Company, immediately prior to the merger or
consolidation, will not beneficially own, immediately after the merger or consolidation,
shares entitling such shareholders to more than 50% of all votes to which all shareholders
of the surviving corporation would be entitled in the election of directors, (ii) a sale or
other disposition of all or substantially all of the assets of the Company, or (iii) a
liquidation or dissolution of the Company; or

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

     (e) “Committee” means the Compensation Committee of the Board or another committee appointed
by the Board to administer the Plan. Grants that are intended to be “qualified performance-based
compensation” under section 162(m) of the Code shall be made by a committee that consists of two or
more persons appointed by the Board, all of whom shall be “outside directors” as defined under
section 162(m) of the Code and related Treasury regulations.

     (f) “Company” means Smart Move, Inc. and any successor corporation.

 

 

     (g) “Company Stock” means the common stock of the Company.

     (h) “Consultant” means a consultant or advisor who performs services for the Employer and who
renders bona fide services to the Employer, if the services are not in connection with the offer
and sale of securities in a capital-raising transaction and the Consultant does not directly or
indirectly promote or maintain a market for the Employer’s securities.

     (i) “Disability” means a Participant’s becoming disabled within the meaning of section
22(e)(3) of the Code, within the meaning of the Employer’s long-term disability plan applicable to
the Participant, or as otherwise determined by the Committee.

     (j) “Effective Date” of the Plan means February ___, 2006, subject to approval of the Plan by
the shareholders of the Company.

     (k) “Employee” means an employee of the Employer (including an officer or director who is also
an employee).

     (l) “Employer” means the Company and its subsidiaries.

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

     (n) “Exercise Price” means the per share price at which shares of Company Stock may be
purchased under an Option, as designated by the Committee.

     (o) “Fair Market Value” of Company Stock means, unless the Committee determines otherwise with
respect to a particular Grant, (i) if the principal trading market for the Company Stock is the
American Stock Exchange or another national securities exchange, the “closing transaction” price at
which shares of Company Stock are traded on such securities exchange on the relevant date or (if
there were no trades on that date) the latest preceding date upon which a sale was reported, (ii)
if the Company Stock is not principally traded on a national securities exchange, but is quoted on
The Nasdaq Stock Market, Inc. National Market System (“NMS”) or Small-Cap Market (“Small-Cap”), the
NASD OTC Bulletin Board (“OTCBB”) or the Pink Sheets, the last reported “closing transaction” price
of Company Stock on the relevant date, as reported by the NMS, Small-Cap, OTCBB or Pink Sheets, or,
if not so reported, as reported in a customary financial reporting service, as the Committee
determines, or (iii) if the Company Stock is not publicly traded or, if publicly traded, is not
subject to reported closing transaction prices as set forth above, the Fair Market Value per share
shall be as determined by the Committee. Notwithstanding the foregoing, for federal, state and
local income tax purposes, the Fair Market Value may be determined by the Committee in accordance
with uniform and non-discriminatory standards adopted by it from time to time.

     (p) “Grant” means an Option, Stock Unit, Stock Award, SAR or Other Stock-Based Award granted
under the Plan.

     (q) “Grant Agreement” means the written instrument that sets forth the terms and conditions of
a Grant, including all amendments thereto.

     (r) “Incentive Stock Option” means an Option that is intended to meet the requirements of an
incentive stock option under section 422 of the Code.

     (s) “Non-Employee Director” means a member of the Board who is not an employee of the
Employer.

     (t) “Nonqualified Stock Option” means an Option that is not intended to be taxed as an
incentive stock option under section 422 of the Code.

     (u) “Option” means an option to purchase shares of Company Stock, as described in Section 7.

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     (v) “Other Stock-Based Award” means any Grant based on, measured by or payable in Company
Stock (other than a Grant described in Sections 7, 8 or 9 of the Plan), as described in Section 10.

     (w) “Participant” means an Employee, Consultant or Non-Employee Director designated by the
Committee to participate in the Plan.

     (x) “Plan” means this Smart Move, Inc. 2006 Equity Incentive Plan, as in effect from time to
time.

     (y) “SAR” means a stock appreciation right as described in Section 10.

     (z) “Stock Award” means an award of Company Stock as described in Section 9.

     (aa) “Stock Unit” means an award of a phantom unit representing a share of Company Stock, as
described in Section 8.

3. Administration

     (a) Committee. The Plan shall be administered and interpreted by the Committee. Ministerial
functions may be performed by an administrative committee comprised of Company employees appointed
by the Committee.

     (b) Committee Authority. The Committee shall have the sole authority to (i) determine the
Participants to whom Grants shall be made under the Plan, (ii) determine the type, size and terms
and conditions of the Grants to be made to each such Participant, (iii) determine the time when the
grants will be made and the duration of any applicable exercise or restriction period, including
the criteria for exercisability and the acceleration of exercisability, (iv) amend the terms and
conditions of any previously issued Grant, subject to the provisions of Section 17 below, and (v)
deal with any other matters arising under the Plan.

     (c) Committee Determinations. The Committee shall have full power and express discretionary
authority to administer and interpret the Plan, to make factual determinations and to adopt or
amend such rules, regulations, agreements and instruments for implementing the Plan and for the
conduct of its business as it deems necessary or advisable, in its sole discretion. The Committee’s
interpretations of the Plan and all determinations made by the Committee pursuant to the powers
vested in it hereunder shall be conclusive and binding on all persons having any interest in the
Plan or in any awards granted hereunder. All powers of the Committee shall be executed in its sole
discretion, in the best interest of the Company, not as a fiduciary, and in keeping with the
objectives of the Plan and need not be uniform as to similarly situated Participants.

4. Grants

     (a) Grants under the Plan may consist of Options as described in Section 7, Stock Units as
described in Section 8, Stock Awards as described in Section 9, and SARs or Other Stock-Based
Awards as described in Section 10. All Grants shall be subject to such terms and conditions as the
Committee deems appropriate and as are specified in writing by the Committee to the Participant in
the Grant Agreement.

     (b) All Grants shall be made conditional upon the Participant’s acknowledgement, in writing or
by acceptance of the Grant, that all decisions and determinations of the Committee shall be final
and binding on the Participant, his or her beneficiaries and any other person having or claiming an
interest under such Grant. Grants under a particular Section of the Plan need not be uniform as
among the Participants.

5. Shares Subject to the Plan

     (a) Shares Authorized. The aggregate number of shares of Company Stock that may be issued
under the Plan is 700,000 shares, subject to adjustment as described in subsection (e) below.

     (b) Limit on Stock Awards, Stock Units, SARs and Other Stock-Based Awards. Within the
aggregate limit described in subsection (a), the maximum number of shares of Company Stock that may
be issued under the Plan

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pursuant to Stock Awards, Stock Units, SARs and Other Stock-Based Awards during the term of
the Plan is 20,000 shares, subject to adjustment as described in subsection (e) below.

     (c) Source of Shares; Share Counting. Shares issued under the Plan may be authorized but
unissued shares of Company Stock or reacquired shares of Company Stock, including shares purchased
by the Company on the open market for purposes of the Plan. If and to the extent Options and SARs
granted under the Plan terminate, expire, or are canceled, forfeited, exchanged or surrendered
without having been exercised, and if and to the extent that any Stock Awards, Stock Units or Other
Stock-Based Awards are forfeited or terminated, or otherwise are not paid in full, the shares
reserved for such Grants shall again be available for purposes of the Plan.

     (d) Individual Limits. All Grants under the Plan shall be expressed in shares of Company
Stock. The maximum number of shares of Company Stock with respect to which all Grants may be made
under the Plan to any individual during any calendar year shall be 500,000 shares, subject to
adjustment as described in subsection (e) below. The individual limits of this subsection (d) shall
apply without regard to whether the Grants are to be paid in Company Stock or cash. All cash
payments shall equal the Fair Market Value of the shares of Company Stock to which the cash
payments relate.

     (e) Adjustments. If there is any change in the number or kind of shares of Company Stock
outstanding (i) by reason of a stock dividend, spinoff, recapitalization, stock split, or
combination or exchange of shares, (ii) by reason of a merger, reorganization or consolidation,
(iii) by reason of a reclassification or change in par value, or (iv) by reason of any other
extraordinary or unusual event affecting the outstanding Company Stock as a class without the
Company’s receipt of consideration, or if the value of outstanding shares of Company Stock is
substantially reduced as a result of a spinoff or the Company’s payment of an extraordinary
dividend or distribution, the maximum number of shares of Company Stock available for issuance
under the Plan, the maximum number of shares of Company Stock for which any individual may receive
Grants in any year, the number of shares covered by outstanding Grants, the kind of shares issued
and to be issued under the Plan, and the price per share or the applicable market value of such
Grants may be appropriately adjusted by the Committee to reflect any increase or decrease in the
number of, or change in the kind or value of, issued shares of Company Stock to preclude, to the
extent practicable, the enlargement or dilution of rights and benefits under such Grants; provided,
however, that any fractional shares resulting from such adjustment shall be eliminated. Any
adjustments determined by the Committee shall be final, binding and conclusive. To the extent that
any Grant is subject to section 409A of the Code, or becomes subject to section 409A of the Code as
a result of any adjustment made hereunder, such adjustment shall be made in compliance with section
409A of the Code.

6. Eligibility for Participation

     (a) Eligible Persons. All Employees, Consultants and Non-Employee Directors shall be eligible
to participate in the Plan.

     (b) Selection of Participants. The Committee shall select the Employees, Consultants and
Non-Employee Directors to receive Grants and shall determine the number of shares of Company Stock
subject to each Grant.

7. Options

     (a) General Requirements. The Committee may grant Options to an Employee, Consultant or
Non-Employee Director upon such terms and conditions as the Committee deems appropriate under this
Section 7. The Committee shall determine the number of shares of Company Stock that will be subject
to each Grant of Options to Employees, Consultants and Non-Employee Directors.

     (b) Type of Option, Price and Term

     (i) The Committee may grant Incentive Stock Options or Nonqualified Stock Options or
any combination of the two, all in accordance with the terms and conditions set forth
herein. Incentive Stock Options may be granted only to Employees of the Company or its
parents or subsidiaries, as defined in section 424 of the Code. Nonqualified Stock Options
may be granted to Employees, Consultants or Non-Employee Directors.

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     (ii) The Exercise Price of Company Stock subject to an Option shall be determined by
the Committee; provided, however, that the Exercise Price for an Option (including Incentive
Stock Options or Nonqualified Stock Options) will be equal to, or greater than, the Fair
Market Value of a share of Company Stock on the date the Option is granted and further
provided that an Incentive Stock Option may not be granted to an Employee who, at the time
of grant, owns stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or any parent or subsidiary, as defined in section 424 of
the Code, unless the Exercise Price per share is not less than 110% of the Fair Market Value
of the Company Stock on the date of grant

     (iii) The Committee shall determine the term of each Option, which shall not exceed ten
years from the date of grant. However, an Incentive Stock Option that is granted to an
Employee who, at the time of grant, owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or any parent or subsidiary, as
defined in section 424 of the Code, may not have a term that exceeds five years from the
date of grant.

     (c) Exercisability of Options.

     (i) Options shall become exercisable in accordance with such terms and conditions as
may be determined by the Committee and specified in the Grant Agreement. The Committee may
accelerate the exercisability of any or all outstanding Options at any time for any reason.

     (ii) The Committee may provide in a Grant Agreement that the Participant may elect to
exercise part or all of an Option before it otherwise has become exercisable. Any shares so
purchased shall be restricted shares and shall be subject to a repurchase right in favor of
the Company during a specified restriction period, with the repurchase price equal to the
lesser of (A) the Exercise Price or (B) the Fair Market Value of such shares at the time of
repurchase, or such other restrictions as the Committee deems appropriate. Notwithstanding
the foregoing, to the extent that an Option would otherwise be exempt from section 409A of
the Code, the Committee may only include such a provision in a Grant Agreement for such an
Option if the inclusion of such a provision will not cause that Option to become subject to
section 409A of the Code.

     (iii) Options granted to persons who are non-exempt employees under the Fair Labor
Standards Act of 1938, as amended, may not be exercisable for at least six months after the
date of grant (except that such Options may become exercisable, as determined by the
Committee, upon the Participant’s death, Disability or retirement, or upon a Change of
Control or other circumstances permitted by applicable regulations).

     (d) Termination of Employment or Service. Upon termination of employment or the services of a
Participant, an Option may only be exercised as follows:

     (i) In the event that a Participant ceases to be employed by, or provide service to,
the Employer for any reason other than Disability, death, or termination for Cause, any
Option which is otherwise exercisable by the Participant shall terminate unless exercised
within three months after the date on which the Participant ceases to be employed by, or
provide service to, the Employer (or within such other period of time as may be specified by
the Committee), but in any event no later than the date of expiration of the Option term.
Except as otherwise provided by the Committee, any of the Participant’s Options that are not
otherwise exercisable as of the date on which the Participant ceases to be employed by, or
provide service to, the Employer shall terminate as of such date.

     (ii) In the event the Participant ceases to be employed by, or provide service to, the
Employer on account of a termination for Cause by the Employer, any Option held by the
Participant shall terminate as of the date the Participant ceases to be employed by, or
provide service to, the Employer. In addition, notwithstanding any other provisions of this
Section 7, if the Committee determines that the Participant has engaged in conduct that
constitutes Cause at any time while the Participant is employed by, or providing service to,
the Employer or after the Participant’s termination of employment or service, any Option
held by the Participant shall immediately terminate and the Participant shall automatically
forfeit all shares underlying

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any exercised portion of an Option for which the Company has not yet delivered the
share certificates, upon refund by the Company of the Exercise Price paid by the Participant
for such shares. Upon any exercise of an Option, the Company may withhold delivery of share
certificates pending resolution of an inquiry that could lead to a finding resulting in a
forfeiture.

     (iii) In the event the Participant ceases to be employed by, or provide service to, the
Employer on account of the Participant’s Disability, any Option which is otherwise
exercisable by the Participant shall terminate unless exercised within one year after the
date on which the Participant ceases to be employed by, or provide service to, the Employer
(or within such other period of time as may be specified by the Committee), but in any event
no later than the date of expiration of the Option term. Except as otherwise provided by the
Committee, any of the Participant’s Options which are not otherwise exercisable as of the
date on which the Participant ceases to be employed by, or provide service to, the Employer
shall terminate as of such date.

     (iv) If the Participant dies while employed by, or providing service to, the Employer
or while an Option remains outstanding under Section 7(d)(i) or 7(d)(iii) above (or within
such other period of time as may be specified by the Committee), any Option that is
otherwise exercisable by the Participant shall terminate unless exercised within one year
after the date on which the Participant ceases to be employed by, or provide service to, the
Employer (or within such other period of time as may be specified by the Committee), but in
any event no later than the date of expiration of the Option term. Except as otherwise
provided by the Committee, any of the Participant’s Options that are not otherwise
exercisable as of the date on which the Participant ceases to be employed by, or provide
service to, the Employer shall terminate as of such date.

     (e) Exercise of Options. A Participant may exercise an Option that has become exercisable, in
whole or in part, by delivering a notice of exercise to the Company. The Participant shall pay the
Exercise Price for the Option (i) in cash, (ii) if permitted by the Committee, by delivering shares
of Company Stock owned by the Participant and having a Fair Market Value on the date of exercise
equal to the Exercise Price or by attestation to ownership of shares of Company Stock having an
aggregate Fair Market Value on the date of exercise equal to the Exercise Price, (iii) by payment
through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve
Board, or (iv) by such other method as the Committee may approve. Shares of Company Stock used to
exercise an Option shall have been held by the Participant for the requisite period of time to
avoid adverse accounting consequences to the Company with respect to the Option. Payment for the
shares pursuant to the Option, and any required withholding taxes, must be received by the time
specified by the Committee depending on the type of payment being made, but in all cases prior to
the issuance of the Company Stock.

     (f) Limits on Incentive Stock Options. Each Incentive Stock Option shall provide that, if the
aggregate Fair Market Value of the stock on the date of the grant with respect to which Incentive
Stock Options are exercisable for the first time by a Participant during any calendar year, under
the Plan or any other stock option plan of the Company or a parent or subsidiary, as defined in
section 424 of the Code, exceeds $100,000, then the Option, as to the excess, shall be treated as a
Nonqualified Stock Option. An Incentive Stock Option shall not be granted to any person who is not
an Employee of the Company or a parent or subsidiary, as defined in section 424 of the Code.

8. Stock Units

     (a) General Requirements. The Committee may grant Stock Units to an Employee, Consultant or
Non-Employee Director, upon such terms and conditions as the Committee deems appropriate under this
Section 8. Each Stock Unit shall represent the right of the Participant to receive a share of
Company Stock or an amount based on the value of a share of Company Stock. All Stock Units shall be
credited to bookkeeping accounts on the Company’s records for purposes of the Plan.

     (b) Terms of Stock Units. The Committee may grant Stock Units that are payable on terms and
conditions determined by the Committee, which may include payment based on achievement of
performance goals. Stock Units may be paid at the end of a specified vesting or performance period,
or payment may be deferred to a date authorized by the Committee. The Committee shall determine the
number of Stock Units to be granted and the requirements applicable to such Stock Units.

     (c) Payment With Respect to Stock Units. Payment with respect to Stock Units shall be made in
cash, in

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Company Stock, or in a combination of the two, as determined by the Committee. The Grant
Agreement shall specify the maximum number of shares that can be issued under the Stock Units.

     (d) Requirement of Employment or Service. The Committee shall determine in the Grant
Agreement under what circumstances a Participant may retain Stock Units after termination of the
Participant’s employment or service, and the circumstances under which Stock Units may be
forfeited.

9. Stock Awards

     (a) General Requirements. The Committee may issue shares of Company Stock to an Employee,
Consultant or Non-Employee Director under a Stock Award, upon such terms and conditions as the
Committee deems appropriate under this Section 9. Shares of Company Stock issued pursuant to Stock
Awards may be issued for cash consideration or for no cash consideration, and subject to
restrictions or no restrictions, as determined by the Committee. The Committee may establish
conditions under which restrictions on Stock Awards shall lapse over a period of time or according
to such other criteria as the Committee deems appropriate, including restrictions based upon the
achievement of specific performance goals. The Committee shall determine the number of shares of
Company Stock to be issued pursuant to a Stock Award.

     (b) Requirement of Employment or Service. The Committee shall determine in the Grant
Agreement under what circumstances a Participant may retain Stock Awards after termination of the
Participant’s employment or service, and the circumstances under which Stock Awards may be
forfeited.

     (c) Restrictions on Transfer. While Stock Awards are subject to restrictions, a Participant
may not sell, assign, transfer, pledge or otherwise dispose of the shares of a Stock Award except
upon death as described in Section 14(a). Each certificate for a share of a Stock Award shall
contain a legend giving appropriate notice of the restrictions in the Grant. The Participant shall
be entitled to have the legend removed when all restrictions on such shares have lapsed. The
Company may retain possession of any certificates for Stock Awards until all restrictions on such
shares have lapsed.

     (d) Right to Vote and to Receive Dividends. The Committee shall determine to what extent, and
under what conditions, the Participant shall have the right to vote shares of Stock Awards and to
receive any dividends or other distributions paid on such shares during the restriction period.

10. Stock Appreciation Rights and Other Stock-Based Awards

     (a) The Committee may grant SARs to an Employee, Non-Employee Director or Consultant
separately or in tandem with an Option. The following provisions are applicable to SARs:

     (i) Base Amount. The Committee shall establish the base amount of the SAR at the time
the SAR is granted. The base amount of each SAR shall be equal to the per share Exercise
Price of the related Option or, if there is no related Option, an amount that is at least
equal to the Fair Market Value of a share of Company Stock as of the date of Grant of the
SAR.

     (ii) Tandem SARs. The Committee may grant tandem SARs either at the time the Option is
granted or at any time thereafter while the Option remains outstanding; provided, however,
that, in the case of an Incentive Stock Option, SARs may be granted only at the date of the
grant of the Incentive Stock Option. In the case of tandem SARs, the number of SARs granted
to a Participant that shall be exercisable during a specified period shall not exceed the
number of shares of Company Stock that the Participant may purchase upon the exercise of the
related Option during such period. Upon the exercise of an Option, the SARs relating to the
Company Stock covered by such Option shall terminate. Upon the exercise of SARs, the related
Option shall terminate to the extent of an equal number of shares of Company Stock.

     (iii) Exercisability. An SAR shall be exercisable during the period specified by the
Committee in the Grant Agreement and shall be subject to such vesting and other restrictions
as may be specified in the Grant Agreement. The Committee may grant SARs that are subject to
achievement of performance goals or other conditions. The Committee may accelerate the exercisability of any or all
outstanding SARs at any time

8

 

for any reason. SARs may only be exercised while the
Participant is employed by, or providing service to, the Employer or during the applicable
period after termination of employment or service as described in Section 7(d). A tandem SAR
shall be exercisable only during the period when the Option to which it is related is also
exercisable.

     (iv) Grants to Non-Exempt Employees. SARs granted to persons who are non-exempt
employees under the Fair Labor Standards Act of 1938, as amended, may not be exercisable for
at least six months after the date of grant (except that such SARs may become exercisable,
as determined by the Committee, upon the Participant’s death, Disability or retirement, or
upon a Change of Control or other circumstances permitted by applicable regulations).

     (v) Value of SARs. When a Participant exercises SARs, the Participant shall receive in
settlement of such SARs an amount equal to the value of the stock appreciation for the
number of SARs exercised. The stock appreciation for an SAR is the amount by which the Fair
Market Value of the underlying Company Stock on the date of exercise of the SAR exceeds the
base amount of the SAR as described in subsection (i).

     (vi) Form of Payment. The Committee shall determine whether the stock appreciation for
an SAR shall be paid in the form of shares of Company Stock, cash or a combination of the
two. For purposes of calculating the number of shares of Company Stock to be received,
            shares of Company Stock shall be valued at their Fair Market Value on the date of exercise
of the SAR. If shares of Company Stock are to be received upon exercise of an SAR, cash
shall be delivered in lieu of any fractional share.

     (b) Other Stock-Based Awards. The Committee may grant other awards not specified in Sections
7, 8 or 9 above that are based on or measured by Company Stock to Employees, Consultants and
Non-Employee Directors, on such terms and conditions as the Committee deems appropriate. Other
Stock-Based Awards may be granted subject to achievement of performance goals or other conditions
and may be payable in Company Stock or cash, or in a combination of the two, as determined by the
Committee in the Grant Agreement.

11. Qualified Performance-Based Compensation

     (a) Designation as Qualified Performance-Based Compensation. The Committee may determine that
Stock Units, Stock Awards, SARs or Other Stock-Based Awards granted to an Employee shall be
considered “qualified performance-based compensation” under section 162(m) of the Code, in which
case the provisions of this Section 11 shall apply to such Grants. The Committee may also grant
Options under which the exercisability of the Options is subject to achievement of performance
goals as described in this Section 11 or otherwise.

     (b) Performance Goals. When Grants are made under this Section 11, the Committee shall
establish in writing (i) the objective performance goals that must be met, (ii) the period during
which performance will be measured, (iii) the maximum amounts that may be paid if the performance
goals are met, and (iv) any other conditions that the Committee deems appropriate and consistent
with the requirements of section 162(m) of the Code for “qualified performance-based compensation.”
The performance goals shall satisfy the requirements for “qualified performance-based
compensation,” including the requirement that the achievement of the goals be substantially
uncertain at the time they are established and that the performance goals be established in such a
way that a third party with knowledge of the relevant facts could determine whether and to what
extent the performance goals have been met. The Committee shall not have discretion to increase the
amount of compensation that is payable, but may reduce the amount of compensation that is payable,
pursuant to Grants identified by the Committee as “qualified performance-based compensation.”

     (c) Criteria Used for Objective Performance Goals. The Committee shall use objectively
determinable performance goals based on one or more of the following criteria: stock price,
earnings per share, price-earnings multiples, gross profit, net earnings, operating earnings,
revenue, revenue growth, number of days sales outstanding in accounts receivable, number of days of
cost of sales in inventory, productivity, margin, EBITDA (earnings before interest, taxes,
depreciation and amortization), net capital employed, return on assets, shareholder return, return
on
equity, return on capital employed, growth in assets, unit volume, sales, cash flow, market
share, relative performance to a comparison group designated by the Committee, debt reduction,
market capitalization or strategic business criteria

9

 

consisting of one or more objectives based on
meeting specified R&D programs, new product releases, revenue goals, market penetration goals,
customer growth, geographic business expansion goals, cost targets, quality improvements, cycle
time reductions, manufacturing improvements and/or efficiencies, human resource programs, customer
programs, goals relating to acquisitions or divestitures or goals relating to FDA or other
regulatory approvals. The performance goals may relate to one or more business units or the
performance of the Company as a whole, or any combination of the foregoing. Performance goals need
not be uniform as among Participants. Performance goals may be set on a pre tax or after tax basis,
may be defined by absolute or relative measures, and may be valued on a growth or fixed basis.

     (d) Timing of Establishment of Goals. The Committee shall establish the performance goals in
writing either before the beginning of the performance period or during a period ending no later
than the earlier of (i) 90 days after the beginning of the performance period or (ii) the date on
which 25% of the performance period has been completed, or such other date as may be required or
permitted under applicable regulations under section 162(m) of the Code.

     (e) Certification of Results. The Committee shall certify the performance results for the
performance period specified in the Grant Agreement after the performance period ends. The
Committee shall determine the amount, if any, to be paid pursuant to each Grant based on the
achievement of the performance goals and the satisfaction of all other terms of the Grant
Agreement.

     (f) Death, Disability or Other Circumstances. The Committee may provide in the Grant
Agreement that Grants under this Section 11 shall be payable, in whole or in part, in the event of
the Participant’s death or Disability, a Change of Control or under other circumstances consistent
with the Treasury regulations and rulings under section 162(m) of the Code.

12. Deferrals

     The Committee may permit or require a Participant to defer receipt of the payment of cash or
the delivery of shares that would otherwise be due to the Participant in connection with any Grant.
The Committee shall establish rules and procedures for any such deferrals, consistent with
applicable requirements of section 409A of the Code.

13. Withholding of Taxes

     (a) Required Withholding. All Grants under the Plan shall be subject to applicable federal
(including FICA), state and local tax withholding requirements. The Company may require that the
Participant or other person receiving or exercising Grants pay to the Company the amount of any
federal, state or local taxes that the Company is required to withhold with respect to such Grants,
or the Company may deduct from other wages paid by the Company the amount of any withholding taxes
due with respect to such Grants.

     (b) Election to Withhold Shares. If the Committee so permits, a Participant may elect to
satisfy the Company’s tax withholding obligation with respect to Grants paid in Company Stock by
having shares withheld, at the time such Grants become taxable, up to an amount that does not
exceed the minimum applicable withholding tax rate for federal (including FICA), state and local
tax liabilities. The election must be in a form and manner prescribed by the Committee.

14. Transferability of Grants

     (a) Restrictions on Transfer. Except as described in subsection (b) below, only the
Participant may exercise rights under a Grant during the Participant’s lifetime, and a Participant
may not transfer those rights except by will or by the laws of descent and distribution. When a
Participant dies, the personal representative or other person entitled to succeed to the rights of
the Participant may exercise such rights. Any such successor must furnish proof satisfactory to the
Company of his or her right to receive the Grant under the Participant’s will or under the
applicable laws of descent and distribution.

     (b) Transfer of Nonqualified Stock Options to or for Family Members. Notwithstanding the
foregoing,
the Committee may provide, in a Grant Agreement, that a Participant may transfer Nonqualified
Stock Options to family members, or one or more trusts or other entities for the benefit of or
owned by family members, consistent with

10

 

the applicable securities laws, according to such terms as
the Committee may determine; provided that the Participant receives no consideration for the
transfer of an Option and the transferred Option shall continue to be subject to the same terms and
conditions as were applicable to the Option immediately before the transfer.

15. Consequences of a Change of Control

     In the event of a Change of Control, the Committee may take any one or more of the following
actions with respect to any or all outstanding Grants, without the consent of any Participant: (i)
the Committee may determine that outstanding Options and SARs shall be fully exercisable, and
restrictions on outstanding Stock Awards and Stock Units shall lapse, as of the date of the Change
of Control or at such other time or subject to specific conditions as the Committee determines,
(ii) the Committee may require that Participants surrender their outstanding Options and SARs in
exchange for one or more payments by the Company, in cash or Company Stock as determined by the
Committee, in an amount equal to the amount by which the then Fair Market Value of the shares of
Company Stock subject to the Participant’s unexercised Options and SARs exceeds the Exercise Price,
if any, and on such terms as the Committee determines, (iii) after giving Participants an
opportunity to exercise their outstanding Options and SARs, the Committee may terminate any or all
unexercised Options and SARs at such time as the Committee deems appropriate, (iv) with respect to
Participants holding Stock Units or Other Stock-Based Awards, the Committee may determine that such
Participants shall receive one or more payments in settlement of such Stock Units or Other
Stock-Based Awards, in such amount and form and on such terms as may be determined by the
Committee, or (v) the Committee may determine that Grants that remain outstanding after the Change
of Control shall be converted to similar grants of the surviving corporation (or a parent or
subsidiary of the surviving corporation). Such acceleration, surrender, termination, settlement or
assumption shall take place as of the date of the Change of Control or such other date as the
Committee may specify. Notwithstanding the foregoing, to the extent required to comply with
section 409A of the Code, a Grant Agreement will include a definition of “Change of Control” that
complies with and falls within the definition of “change in control event” set forth in section
409A of the Code and any Internal Revenue Service regulations or other guidance issued thereunder.

16. Requirements for Issuance of Shares

     No Company Stock shall be issued in connection with any Grant hereunder unless and until all
legal requirements applicable to the issuance of such Company Stock have been complied with to the
satisfaction of the Committee. The Committee shall have the right to condition any Grant made to
any Participant hereunder on such Participant’s undertaking in writing to comply with such
restrictions on his or her subsequent disposition of such shares of Company Stock as the Committee
shall deem necessary or advisable, and certificates representing such shares may be legended to
reflect any such restrictions. Certificates representing shares of Company Stock issued under the
Plan will be subject to such stop-transfer orders and other restrictions as may be required by
applicable laws, regulations and interpretations, including any requirement that a legend be placed
thereon. No Participant shall have any right as a shareholder with respect to Company Stock covered
by a Grant until shares have been issued to the Participant.

17. Amendment and Termination of the Plan

     (a) Amendment. The Board may amend or terminate the Plan at any time; provided, however, that
the Board shall not amend the Plan without approval of the shareholders of the Company if such
approval is required in order to comply with the Code or applicable laws, or to comply with
applicable stock exchange requirements. No amendment or termination of this Plan shall, without the
consent of the Participant, materially impair any rights or obligations under any Grant previously
made to the Participant under the Plan, unless such right has been reserved in the Plan or the
Grant Agreement, or except as provided in Section 18(b) below. Notwithstanding anything in the Plan
to the contrary, the Board may amend the Plan in such manner as it deems appropriate in the event
of a change in applicable law or regulations.

     (b) Shareholder Approval for “Qualified Performance-Based Compensation.” If Grants are made
under Section 11 above, the Plan must be reapproved by the Company’s shareholders no later than the
first shareholders meeting that occurs in the fifth year following the year in which the
shareholders previously approved the provisions of
Section 11, if additional Grants are to be made under Section 11 and if required by section
162(m) of the Code or the regulations thereunder.

11

 

     (c) Termination of Plan. The Plan shall terminate on the day immediately preceding the tenth
anniversary of its Effective Date, unless the Plan is terminated earlier by the Board or is
extended by the Board with the approval of the shareholders. The termination of the Plan shall not
impair the power and authority of the Committee with respect to an outstanding Grant.

18. Miscellaneous

     (a) Grants in Connection with Corporate Transactions and Otherwise. Nothing contained in this
Plan shall be construed to (i) limit the right of the Committee to make Grants under this Plan in
connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the
business or assets of any corporation, firm or association, including Grants to employees thereof
who become Employees, or for other proper corporate purposes, or (ii) limit the right of the
Company to grant stock options or make other stock-based awards outside of this Plan. Without
limiting the foregoing, the Committee may make a Grant to an employee of another corporation who
becomes an Employee by reason of a corporate merger, consolidation, acquisition of stock or
property, reorganization or liquidation involving the Company in substitution for a grant made by
such corporation. The terms and conditions of the Grants may vary from the terms and conditions
required by the Plan and from those of the substituted stock incentives, as determined by the
Committee

     (b) Compliance with Law. The Plan, the exercise of Options and the obligations of the Company
to issue or transfer shares of Company Stock under Grants shall be subject to all applicable laws
and to approvals by any governmental or regulatory agency as may be required. With respect to
persons subject to section 16 of the Exchange Act, it is the intent of the Company that the Plan
and all transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its
successors under the Exchange Act. In addition, it is the intent of the Company that Incentive
Stock Options comply with the applicable provisions of section 422 of the Code, that Grants of
“qualified performance-based compensation” comply with the applicable provisions of section 162(m)
of the Code and that, to the extent applicable, Grants comply with the requirements of section 409A
of the Code. To the extent that any legal requirement of section 16 of the Exchange Act or section
422, 162(m) or 409A of the Code as set forth in the Plan ceases to be required under section 16 of
the Exchange Act or section 422, 162(m) or 409A of the Code, that Plan provision shall cease to
apply. The Committee may revoke any Grant if it is contrary to law or modify a Grant to bring it
into compliance with any valid and mandatory government regulation. The Committee may also adopt
rules regarding the withholding of taxes on payments to Participants. The Committee may, in its
sole discretion, agree to limit its authority under this Section.

     (c) Enforceability. The Plan shall be binding upon and enforceable against the Company and
its successors and assigns.

     (d) Funding of the Plan; Limitation on Rights. This Plan shall be unfunded. The Company shall
not be required to establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Grants under this Plan. Nothing contained in the Plan and no
action taken pursuant hereto shall create or be construed to create a fiduciary relationship
between the Company and any Participant or any other person. No Participant or any other person
shall under any circumstances acquire any property interest in any specific assets of the Company.
To the extent that any person acquires a right to receive payment from the Company hereunder, such
right shall be no greater than the right of any unsecured general creditor of the Company.

     (e) Rights of Participants. Nothing in this Plan shall entitle any Employee, Non-Employee
Director or other person to any claim or right to receive a Grant under this Plan. Neither this
Plan nor any action taken hereunder shall be construed as giving any individual any rights to be
retained by or in the employment or service of the Employer.

     (f) No Fractional Shares. No fractional shares of Company Stock shall be issued or delivered
pursuant to the Plan or any Grant. The Committee shall determine whether cash, other awards or
other property shall be issued or paid in lieu of such fractional shares or whether such fractional
shares or any rights thereto shall be forfeited or otherwise eliminated.

12

 

     (g) Employees Subject to Taxation Outside the United States. With respect to Participants who
are subject to taxation in countries other than the United States, the Committee may make Grants on
such terms and conditions as the Committee deems appropriate to comply with the laws of the
applicable countries, and the Committee may create such procedures, addenda and subplans and make
such modifications as may be necessary or advisable to comply with such laws.

     (h) Governing Law. The validity, construction, interpretation and effect of the Plan and
Grant Agreements issued under the Plan shall be governed and construed by and determined in
accordance with the laws of the State of Delaware, without giving effect to the conflict of laws
provisions thereof.

13Exhibit 10.1

                           CONVERTIBLE LOAN AGREEMENT

         This Convertible Loan Agreement ("Agreement") is entered into by and
between American Consolidated Management Group, Inc., a Utah corporation (the
"Company") and _________ ("Lender") to be effective as of the ___ day of March,
2006.

                                   WITNESSETH:

         WHEREAS, the Company is in need of immediate capital to fund its
planned operations;

         WHEREAS, Lender is willing to make a loan to the Company in the
aggregate principal amount of _______ DOLLARS ($_____ USD) upon the terms and
conditions set forth herein and the Company is willing to borrow the stated
amount upon such terms;

         WHEREAS, the loan amount will be evidenced by that certain Convertible
Promissory Note in the form attached hereto as Exhibit A (the "Note"),
convertible into shares of common stock, par value $.20 (twenty cents) per
share, of the Company (the "Common Stock"); and

         WHEREAS, upon the terms and conditions set forth herein, the Company
agrees to provide certain registration rights under the Securities Act of 1933,
as amended (the "Securities Act"), and the rules and regulations promulgated
thereunder, and applicable state securities laws.

         NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

Section 1. The Loan.

         1.1. Contemporaneously with the execution of this Agreement, the
Company shall issue and deliver to Lender the Note in exchange for Lender's loan
to the Company of the aggregate principal amount of _______ DOLLARS ($______)
(the "Loan"). At the Lender's option, the Note may be converted at any time
after issuance into validly issued, fully paid and nonassessable shares of
Common Stock at the rate of one share of Common Stock for every twenty cents
($.20) in amounts owing that are converted, upon the terms and conditions set
forth in this Agreement and the Note.

         1.2. The Company shall use the net proceeds of the Note for working
capital and other purposes.

Section 2. Finance Charges. All outstanding principal represented by the Note
shall bear interest at the rate of twelve percent (12%) per annum. Interest will
be computed on the basis of a 365-day year for actual days elapsed.

Section 3. Payments. Principal and all accrued interest shall be due and payable
in a single balloon payment on the one year anniversary of this Agreement. The
Company may not prepay any amounts owed to Lender without Lender's written
approval. Payments shall be applied first to late charges and collection costs,
if any, then to accrued interest to the date of payment, and then to the
principal outstanding.

Section 4. Deliveries. Contemporaneously with the execution of this Agreement,
the parties shall deliver to each other the following:

         (a)      The properly executed Note of even date herewith by and
                  between Lender and the Company in the principal amount of
                  $_____.

<PAGE>

         (b)      The Loan proceeds in the amount of ______ DOLLARS ($______).

Section 5. Representations of Lender.

         5.1 Lender's representations in this Agreement are complete and
accurate to the best of Lender's knowledge, and the Company may rely upon them.

         5.2 Lender is able to bear the economic risk of an investment in the
Note and the Common Stock into which the Notes are convertible (the "Shares,"
and together with the Note, the "Securities") can afford the loss of the entire
investment in the Securities, and will, after making an investment in the
Securities, have sufficient means of providing for Lender's current needs and
possible future contingencies.

         5.3 The Securities will not be sold by Lender without registration
under applicable securities acts or a proper exemption from such registration.

         5.4 The Securities are being acquired for Lender's own account and
risk, for investment purposes, and not on behalf of any other person or with a
view to, or for resale in connection with, any distribution thereof within the
meaning of the Securities Act. Lender is aware that there are substantial
restrictions on the transferability of the Securities.

         5.5 Lender has had access to any and all information concerning the
Company that Lender and Lender's financial, tax and legal advisors required or
considered necessary to make a proper evaluation of this investment.
Specifically, Lender (i) has had the opportunity to review the Company's annual
report on Form 10-KSB for the fiscal year ended December 31, 2004 and all
subsequent filings by the Company (the "Filings") with the Securities and
Exchange Commission ("SEC") and (ii) is aware that Jack Shaw, Brian Holden and
their affiliates delivered $200,000 to the Company that was intended to be a
loan, but the parties have been unable to reach agreement on the loan terms and
litigation has been threatened. In making the decision to acquire the
Securities, the Lender and Lender's advisers have relied solely upon their own
independent investigations, the Filings and the information provided in this
Agreement, and fully understand that there are no guarantees, assurances or
promises in connection with any investment hereunder and understands that the
particular tax consequences arising from this investment in the Company will
depend upon Lender's individual circumstances. Lender further understands that
no opinion is being given as to any securities or tax matters involving the
offering.

         5.6 Lender also understands and agrees that stop transfer instructions
relating to the Securities will be placed in the Company's transfer ledger, and
that the Securities will bear a restrictive legend pursuant to Rule 144.

         5.7 Lender knows that the Securities are offered and sold pursuant to
exemptions from registration under the Securities Act of 1933, and state
securities law based, in part, on these warranties and representations, which
are the very essence of this Agreement, and constitute a material part of the
bargained-for consideration without which this Agreement would not have been
executed.

         5.8 Lender has the capacity to protect Lender's own interest in
connection with this transaction or has a pre-existing personal or business
relationship with the Company or one or more of Lender's officers, directors or
controlling persons consisting of personal or business contacts of a nature and
duration such as would enable a reasonably prudent purchaser to be aware of the
character, business acumen and general business and financial circumstances of
such person with whom such relationship exists.

                                       2
<PAGE>

         5.9 This Agreement when fully executed and delivered by the Company
will constitute a valid and legally binding obligation of Lender, enforceable in
accordance with its terms. Lender was not formed or organized for the specific
purpose of acquiring the Securities. In the event Lender is an entity, the
purchase of the Securities by Lender is a permissible investment in accordance
with Lender's Articles of Incorporation or other similar charter document, and
has been duly approved by all requisite action by the entity's owners,
directors, officers or other authorized managers. The person signing this
document and all documents necessary to consummate the purchase of the
Securities has all requisite authority to sign such documents on behalf of
Lender.

         5.10 Lender represents that Lender is a sophisticated and an
"accredited investor" as defined under Rule 501 of Regulation D.

Section 6. Representations of the Company.

         6.1 The Company is a duly organized and validly existing corporation in
good standing under the laws of Utah and is duly qualified as a foreign
corporation to do business and is in good standing in every jurisdiction in
which its ownership or use of property or the nature of the business conducted
by it makes such qualification necessary. The Company has no subsidiaries.

         6.2 The Company has all necessary corporate power and authority to
enter into and perform this Agreement and the Securities. The Company has taken
all corporate action necessary to authorize this Agreement and the Securities.

         6.3 The execution and delivery of this Agreement, the performance by
the Company of its obligations under this Agreement and the Securities, and the
consummation of the transactions provided for in this Agreement and the
Securities have been duly and validly authorized by all necessary corporate
action on the part of the Company. This Agreement and the Note will, as of the
effective date set forth above, be duly executed and delivered by the Company
and will constitute the valid and binding agreement of the Company enforceable
against the Company in accordance with its respective terms, subject to
applicable bankruptcy, insolvency and other similar laws affecting the
enforceability of creditors' rights generally, general equitable principles and
the discretion of courts in granting equitable remedies.

         6.4 The execution and delivery by the Company of this Agreement and the
Note, the performance by the Company of its obligations hereunder and
thereunder, and the consummation of the transactions contemplated hereby and
thereby, do not and will not (a) violate or conflict with or result in a breach
of any provision of the Articles of Incorporation or Bylaws of the Company; (b)
require any consent, approval or notice under, or registration under or payment
on account of, or conflict with, or result in a violation or breach of, or
constitute (with or without the giving of notice or the lapse of time or both) a
default (or give rise to any right of termination, modification (including, in
the case of leases, any change in the amount or nature of the rent),
cancellation or acceleration or result in the creation or imposition of any lien
upon the property of the Company) under, any of the terms, conditions or
provisions of any (i) note, bond, mortgage, indenture, license, lease, agreement
or other instrument or obligation to which the Company is a party or by which
any portion of its properties or assets may be bound, or (ii) permit, license,
approval, franchise or other governmental or regulatory authorization held or
used by or binding on the Company; (c) violate or contravene any law, statute,
rule or regulation, or any order, writ, judgment, injunction, decree or award of
any governmental authority binding on the Company; or (d) require any action,
consent, approval or authorization of, or review by, or declaration,
registration or filing with, or notice to, any governmental authority, except
such filings as may be required in connection with applicable securities laws.

                                       3
<PAGE>

         6.5 As of the date hereof, the authorized and outstanding capital stock
and outstanding options and warrants of the Company consists of: 70,000,000
shares of common stock, par value $.01 per share, of which 13,125,652 shares are
outstanding, and no outstanding options or warrants. The Company has entered
into convertible loan agreements, prior to March 23, 2006, in the principal
amount of $50,000 which are convertible into common stock at the rate of $.20
per share. All outstanding shares of capital stock of the Company are, or upon
issuance will be, duly authorized, validly issued, fully paid and nonassessable.
No shares of capital stock of the Company are subject to preemptive rights or
any other similar rights of the shareholders of the Company or any liens or
encumbrances imposed through the actions or failure to act of the Company.

         6.6 The Shares issuable upon conversion of the Note are duly authorized
and reserved for issuance and, upon conversion of the Note in accordance with
its terms, will be validly issued, fully paid and nonassessable, and free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and
shall not be subject to preemptive rights or other similar rights of
shareholders of the Company and will not impose personal liability upon the
holder hereof.

         6.7 The Company has timely filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant
to the reporting requirements of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"). Except as expressly disclosed in such filings or otherwise
in this Agreement, there is no action, suit, claim, proceeding, inquiry or
investigation before or by any court, public board, government agency,
self-regulatory organization or body pending or, to the knowledge of the
Company, threatened against or affecting the Company, or its officers or
directors in their capacity as such that could have a material adverse affect on
the Company.

         6.8 All information relating to or concerning the Company set forth in
this Agreement and provided to Lender pursuant to Section 5.5 hereof or
otherwise in connection with the transactions contemplated hereby is true and
correct in all material respects and the Company has not omitted to state any
material fact necessary in order to make the statements made herein or therein,
in light of the circumstances under which they were made, not misleading. No
event or circumstance has occurred or exists with respect to the Company or its
business, properties, prospects, operations or financial condition which, under
applicable law, rule or regulation, requires public disclosure or announcement
by the Company but which has not been so publicly announced or disclosed.

         6.9 The Company is not obligated to pay any broker's fee, finder's fee,
investment banker's fee or other similar transaction fee in connection with the
transactions contemplated hereby.

Section 7. Miscellaneous.

         7.1. This Agreement, including any attached exhibits or schedules,
constitutes the entire agreement between the parties pertaining to the subject
matter contained in this Agreement. All prior and contemporaneous agreements,
representations and understandings of the parties, oral or written, are
superseded by and merged in this Agreement. No supplement, modification or
amendment of this Agreement shall be binding unless in writing and executed by
the Company and Lender.

         7.2. The provisions of this Agreement shall be binding upon the
Company, its legal representatives, successors or assigns, and shall be for the
benefit of Lender and Lender's respective successors and assigns.

         7.3. The headings of this Agreement are for purposes of reference only
and shall not limit or define the meaning of any provision of this Agreement.

                                       4
<PAGE>

This Agreement may be executed in any number of counterparts, each of which
shall be an original but all of which shall constitute one and the same
instrument.

         7.4. No waiver of any of the provisions of this Agreement shall
constitute a waiver of any other provision, whether or not similar, nor shall
any waiver be a continuing waiver. Except as expressly provided in this
Agreement, no waiver shall be binding unless executed in writing by the party
making the waiver. Either party may waive any provision of this Agreement
intended for its benefit; provided, however, such waiver shall in no way excuse
the other party from the performance of any of its other obligations under this
Agreement.

         7.5. The representations, warranties, acknowledgments and agreements
made by Lender shall survive the closing of the transaction described herein and
run in favor of, and for the benefit of, the Company. The representations,
warranties, acknowledgments and agreements made by the Company shall survive the
closing of the transaction described herein and run in favor of, and for the
benefit of, Lender.

         7.6. The obligations of the parties hereto shall not be delegated or
assigned to any other party without the prior written consent of the other
party.

         7.7. This Agreement shall be governed by the laws of the State of
Texas.

         7.8. Any notices required or permitted hereunder shall be furnished in
writing to each party at such party's address appearing on the signature page
below or as such party may otherwise direct in writing actually received by the
other party.

         7.9. The Company shall do, execute, acknowledge and deliver all such
further acts, deeds, assignments, transfers and assurances as Lender may
reasonably require to effectuate the purposes of this Agreement.

         7.11 Rule 144.

                  (a) Rule 144(d)(3)(ii), as promulgated under the Securities
Act, provides that "[i]f the securities sold were acquired from the issuer for a
consideration consisting solely of other securities of the same issuer
surrendered for conversion, the securities so acquired shall be deemed to have
been acquired at the same time as the securities surrendered for conversion."
So, for example, if Lender acquired the Note and lent funds on April 1, 2006 and
Lender converted the amounts owing on the Note into common stock on July 1,
2006, then the holding period of the common stock for purposes of Rule 144 would
be deemed to start on April 1, 2006.

                  (b) With a view to making available to Lender the benefits of
Rule 144, the Company agrees to use its best efforts to:

                           (i) Make and keep public information regarding the
Company available as those terms are understood and defined in Rule 144;

                           (ii) File with the SEC in a timely manner all reports
and other documents required of the Company under the Securities Act and the
Exchange Act at any time after it has become subject to such reporting
requirements; and

                                       5
<PAGE>

                           (iii) So long as Lender owns any Securities, promptly
furnish to the Lender upon written request a written statement by the Company as
to its compliance with the reporting requirements of Rule 144 and of the
Securities Act and the Exchange Act.

         7.12 Registration rights.

                  (a) Whenever the Company proposes to register any of its
securities under the Securities Act (other than pursuant to a registration on
Form S-8 or any successor or similar forms), whether or not for sale for its own
account, the Company will give prompt written notice (but in no event less than
thirty (30) days before the anticipated filing date) to the Lender, and such
notice shall describe the proposed registration and distribution and offer to
Lender that the Company will include in such registration the number of Shares
as the Lender may request. The Company will include in such registration all
Shares with respect to which the Company has received written requests for
inclusion therein within twenty (20) days after the Lender's receipt of the
Company's notice. All registration expenses incurred in connection with any
registration, qualification or compliance pursuant to this Section 7.12 shall be
borne by the Company. Notwithstanding the foregoing, the Lender shall have no
registration rights pursuant to this Section 7.12 after the three year
anniversary of this Agreement.

                  (b) The Company will indemnify Lender and its agents, other
representatives, legal counsel, and accountants (each, a "Company Indemnified
Party"), with respect to which registration, qualification, or compliance has
been effected pursuant to this Section 7.12, and each underwriter, if any, and
each person who controls within the meaning of Section 15 of the Securities Act
any underwriter, against all expenses, claims, losses, damages, and liabilities
(or actions, proceedings, or settlements in respect thereof) caused by (1) any
untrue statement or alleged untrue statement of a material fact contained in any
registration statement or prospectus prepared in connection with any
registration statement pursuant to this Section 7.12 (and as amended or
supplemented if the Company shall have furnished any amendments thereof or
supplements thereto), any preliminary prospectus or any state securities law
filings; (2) any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, except insofar as such expenses, claims, losses, damages, and
liabilities are caused by any untrue statement or omission contained in
information furnished in writing to the Company by Lender expressly for use
therein; and Lender by its acceptance hereof agree that it will indemnify and
hold harmless the Company, each of its officers who signs such registration
statement, and each person, if any, who controls the Company, within the meaning
of Section 15 of the Securities Act, with respect to losses, claims, damages, or
liabilities which are caused by any untrue statement or alleged untrue
statement, omission or alleged omission contained in information furnished in
writing to the Company by Lender expressly for use therein.

         7.13 This Loan is one of a series of loans that are being made to the
Company by various lenders on similar terms which loans shall be in an aggregate
principal amount of not more than seven hundred seventy-five thousand dollars
($775,000).

         7.14 The Company shall at all times have authorized, and reserved for
the purpose of issuance, a sufficient number of shares of Common Stock to
provide for fully conversion or exercise of the Note and issuance of the shares
of Common Stock in connection therewith. The Company shall not reduce the number
of shares of Common Stock reserved for issuance upon conversion of the Note
without the consent of the Lender. The Company shall maintain at all times the
number of shares of Common Stock so reserved for issuance at an amount equal to
not less than the number that is actually issuable upon full conversion of all
notes issued by the Company pursuant to the series of loans referred to in
Section 7.13 hereof.

                                       6
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Agreement to be
effective as of the date first written above.

AMERICAN CONSOLIDATED MANAGEMENT GROUP, INC.

By _____________________________________________   By __________________________
Its Board of Directors Duly Authorized Director:   Name:
George Mappin

Address:__________________________________         Address:_____________________
Attn:_____________________________________         Attn:________________________
Phone:____________________________________         Phone:_______________________
Fax:______________________________________         Fax:_________________________

                                       7
<PAGE>

                                    EXHIBIT A

NEITHER THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT") AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD UNLESS AND UNTIL REGISTERED
UNDER AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND/OR
APPLICABLE STATE SECURITIES LAWS OR UNLESS THE COMPANY HAS RECEIVED AN OPINION
OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT
SUCH REGISTRATION IS NOT REQUIRED.

                  AMERICAN CONSOLIDATED MANAGEMENT GROUP, INC.
                           CONVERTIBLE PROMISSORY NOTE

$______                                                           March 23, 2006

         American Consolidated Management Group, Inc., a Utah corporation (the
"Company"), for value received, promises to pay to ______________ or its
permitted assigns (the "Holder") the principal sum of $_____ plus interest
thereon from the date of this Note until paid at a rate of twelve percent (12%)
per annum computed on the basis of a 365-day year and actual days elapsed. This
Convertible Promissory Note (this "Note") is being issued and delivered pursuant
to that certain Convertible Loan Agreement, dated as of March 23, 2006 (the
"Loan Agreement"), by and among the Company and the Holder.

         This Note will automatically mature and the entire outstanding
principal amount, together with accrued interest, shall become due and payable
in a single balloon payment on the one year anniversary of this Note, unless
prior to such date this Note is converted into shares of the Company's common
stock, par value $.20 (twenty cents) per share ("Common Stock"), pursuant to
Section 1 hereof.

         Payments of both principal and interest are to be made at the address
of the Holder for the receipt of notices pursuant to Section 7(e) hereof, or at
such other place as the Holder shall designate to the Company in writing, in
lawful money of the United States of America.

         The Company may not prepay any portion of the outstanding amounts owed
on this Note without the written consent of Holder.

         The following is a statement of the rights of the Holder and the
conditions to which this Note is subject, and to which the Holder, by the
acceptance of this Note, agrees:

         1. Optional Conversion of Note. At any time while this Note remains
outstanding, the entire outstanding amounts owing on this Note, including
accrued, but unpaid interest, may, at the Holder's sole option, be converted
into duly authorized, validly issued, fully paid and nonassessable shares of
Common Stock of the Company at the rate of one share of Common Stock for every
TWENTY CENTS ($.20) in amounts owing hereunder that are converted by Holder
("Conversion").

         2. Mechanics of Conversion.

                  (a) Notice of Conversion. The Holder shall give written notice
to the Company of its election to convert this Note and shall state therein the
name or names in which the certificate or certificates for shares of Common
Stock are to be issued. The effective date of the Conversion shall be the date
such notice is received by the Company pursuant to Section 7(e) hereof.

<PAGE>

                  (b) No Fractional Shares Upon Conversion. No fractional shares
of Common Stock shall be issued upon Conversion of this Note. In lieu of any
fractional shares to which the Holder would otherwise be entitled, the Company
shall pay cash equal to such fraction multiplied by the $.20 conversion price.

                  (c) Stock Certificates. At such time after the Conversion as
Holder presents this Note to the Company, the Company shall issue and deliver to
the Holder at the address listed below for receipt of notices, or to its nominee
or nominees, a certificate or certificates for the number of shares of Common
Stock to which it shall be entitled as aforesaid.

         3. Charges, Taxes and Expenses. Issuance of a certificate or
certificates for shares of Common Stock upon the Conversion of this Note shall
be made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company.

         4. No Rights as Stockholder. This Note does not entitle the Holder
hereof to any voting rights or other rights as a stockholder of the Company
prior to the Conversion.

         5. Loss, Theft or Destruction of Note. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft or destruction of this
Note and of indemnity or security reasonably satisfactory to it, the Company
will make and deliver a new Note which shall carry the same rights to interest
carried by this Note, stating that such Note is issued in replacement of this
Note, and this Note is cancelled, making reference to original date of issuance
of this Note (and any successors hereto) and dated as of such cancellation, in
lieu of this Note.

         6. Events of Default.

                  (a) Each of the following occurrences shall constitute an
event of default under this Note (herein called "Event of Default"):

                           (i) the Company shall fail to pay any or all of the
obligations arising under this Note when due or shall fail to observe or perform
any covenant or agreement herein binding on it or shall be in default under any
security, loan, credit or similar agreement between it and the Holder;

                           (ii) any representation or warranty by the Company
set forth in this Note or in the Loan Agreement, or made to the Holder in any
financial statement or report submitted to the Holder by or on behalf of the
Company shall prove materially false or materially misleading;

                           (iii) the Company shall (A) voluntarily file, or have
filed against it involuntarily, a petition under the United States Bankruptcy
Code; or (B) be dissolved or liquidated or terminated; or (C) go out of
business;

                           (iv) Holder in good faith believes that the prospect
of due and punctual payment of any or all of the obligations evidenced hereby or
by the Loan Agreement is impaired; or

                  (b) Upon the occurrence of an Event of Default and at any time
thereafter during the continuation of such Event of Default, Holder may exercise
any one or more of the following rights and remedies:

                                       2
<PAGE>

                           (i) declare all amounts due under this Note to be
immediately due and payable, and the same shall thereupon be immediately due and
payable, without presentment or other notice or demand; and

                           (ii) exercise or enforce any or all other rights or
remedies available to Holder by law or agreement against the Company or against
any other person or property.

         7. Miscellaneous.

                  (a) Reservation of Stock. The Company covenants that the
Company will at all times reserve from its authorized and unissued Common Stock
a sufficient number of shares to provide for the issuance of the Common Stock
upon the Conversion of this Note and, from time to time, will take all steps
necessary to amend its charter to provide sufficient reserves of shares of
Common Stock issuable upon conversion of this Note. The Company further
covenants that all shares that may be issued upon the exercise of rights
represented by this Note, upon exercise as set forth herein, will be free from
all taxes, liens, claims and encumbrances in respect of the issuance thereof.

                  (b) Issue Date. The provisions of this Note shall be construed
and shall be given effect in all respect as if it had been issued and delivered
by the Company on the earlier of the date hereof or the date of issuance of any
Note for which this Note is issued in replacement. This Note shall be binding
upon any successors or assigns of the Company.

                  (c) Restrictions. The Holder acknowledges that the shares of
Common Stock acquired upon the conversion of this Note will be subject to
restrictions upon its resale imposed by state and federal securities laws.

                  (d) Assignment. Neither this Note nor any of the shares of
Common Stock issuable upon conversion of this Note may be sold, assigned,
transferred, pledged or hypothecated or otherwise disposed of unless and until
registered pursuant to an effective registration statement under the Securities
Act and/or applicable state securities laws or unless the Company has received
an opinion of counsel or other evidence satisfactory to the Company and its
counsel that such registration is not required.

                  (e) Notices. All notices or other communications required or
permitted hereunder shall be in writing and shall be effective (i) five (5) days
after deposit with the U.S. Postal Service or other applicable postal service,
if delivered by first class mail, postage prepaid, (ii) upon delivery, if
delivered by hand, (iii) one business day after the business day of deposit with
Federal Express or similar overnight courier, freight prepaid, guaranteeing
overnight delivery, or (iv) upon telephone or further electronic communication
from the recipient acknowledging receipt (whether automatic or manual from
recipient), if delivered by facsimile or electronic transmission, and shall be
addressed (A) to the Holder at the address provided in the Loan Agreement, and
(B) to the Company at the address of its principal corporate offices, Attention:
Chief Executive Officer, or at such other address as may be designated in
writing to the party.

                  (f) Enforcement. No act or omission of the Holder, including,
but not limited to, any failure to exercise, or delay in exercising, any right,
remedy or recourse with respect to a particular event, shall be deemed a waiver
or release of such right, remedy or recourse. The Company shall pay all
reasonable fees and expenses, including reasonable attorney's fees, incurred by
the Holder in the enforcement in any of the Company's obligations hereunder not
performed when due.

                  (g) Governing Law. This Note shall be governed by and
construed in accordance with the laws of the State of Texas, without regard to
its principles of conflicts of law.

                                       3
<PAGE>

         IN WITNESS WHEREOF, American Consolidated Management Group, Inc. has
caused this Convertible Promissory Note to be executed by its officer thereunto
duly authorized.

                                AMERICAN CONSOLIDATED MANAGEMENT GROUP, INC.

                                By:
                                ------------------------------------------------
                                Its Board of Directors Duly Authorized Director:
                                George Mappin

                                       4

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