Document:

PERFORMANCE HEALTH TECHNOLOGIES, INC.
                 AMENDED AND RESTATED 2006 STOCK INCENTIVE PLAN

      1. Objectives. The Performance Health Technologies, Inc. (the "Company")
2006 Stock Incentive Plan (the "Plan") is designed to attract, motivate and
retain selected employees and directors of, and other individuals providing
services to, the Company. These objectives are accomplished by making long-term
incentive and other awards under the Plan, thereby providing Participants with a
proprietary interest in the growth and performance of the Company.

      2. Definitions.

            (a) Affiliate. Any corporation, partnership or other legal entity in
            which the Company owns, directly or indirectly, 50% or more of the
            total combined voting power of all classes of stock of such
            corporation or of the capital interest or profits interest of such
            partnership or other legal entity.

            (b) Award. The grant of any form of stock option, stock appreciation
            right or stock award, whether granted singly, in combination or in
            tandem, to a Participant pursuant to such terms, conditions,
            performance requirements, and limitations and restrictions as the
            Committee may establish in order to fulfill the objectives of the
            Plan.

            (c) Award Agreement. An agreement between the Company and a
            Participant setting forth the terms, conditions, performance
            requirements, limitations and restrictions applicable to an Award.

            (d) Board. The Board of Directors of Performance Health
            Technologies, Inc.

            (e) Change in Control. A change in control shall be deemed to have
            occurred if (i) any "person", including a "group" (as such terms are
            used in Sections 13(d) and 14(d)(2) of the Exchange Act, but
            excluding the Company, any Affiliate, or any employee benefit plan
            of the Company, or any Affiliate) is or becomes the "beneficial
            owner" (as defined in Rule 13(d)(3) under the Exchange Act),
            directly or indirectly, of securities the Company representing 50%
            or more of the combined voting power of the Company's then
            outstanding securities; (ii) a change of more than 25% in the
            composition of the Board of Directors occurs within a two-year
            period unless such change was approved in advance by at least
            two-thirds of the previous directors; or (iii) the stockholders of
            the Company shall approve a definitive agreement for the sale or
            other disposition of all or substantially all of the assets of the
            Company to any other entity.

            Notwithstanding the foregoing, a "Change in Control" shall not be
            deemed to occur in the event the Company files for bankruptcy,
            liquidation or reorganization under the United States Bankruptcy
            Code.
<PAGE>

            (f) Change in Control Price. The higher of (i) the highest price per
            share of Stock offered in conjunction with any transaction resulting
            in a Change in Control (as determined in good faith by the Committee
            if any part of the offered price is payable other than cash) or,
            (ii) the highest Fair Market Value of the Stock on any of the 30
            trading days immediately preceding the date on which a Change in
            Control occurs.

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

            (h) Committee. The committee of the Board as may be designated from
            time to time by the Board to administer the Plan. If at any time no
            Committee shall be in office, then the functions of the Committee
            specified in the Plan shall be exercised by the Board.

            (i) Company. Performance Health Technologies, Inc. and its direct
            and indirect subsidiaries.

            (j) Disabled or Disability. Permanent and total disability as
            determined under the Company's long-term disability program or, if
            no such program has been adopted, the continuous absence of an
            employee for 187 consecutive days or more due to physical or mental
            illness or incapacity.

            (k) Exchange Act. Securities Exchange Act of 1934, as amended,
            together with the rules and regulations thereunder.

            (l) Fair Market Value. The value of a share of Stock on a particular
            date, determined as follows: (i) if the Stock is not listed on such
            date on any national securities exchange but is traded in the
            over-the-counter market, the closing price of a share of Stock on
            such date (or if none, on the most recent date on which there were
            price quotations of a share of Stock), as reported on the National
            Association of Securities Dealers, Inc. Automated Quotation System,
            or, if not so reported, as reported by the National Quotation
            Bureau, Incorporated, or any other similar service selected by the
            Board; or (ii) if the Stock is listed on such date on one or more
            national securities exchanges, the closing price of a share of Stock
            on such date as recorded on the composite tape system, or, if such
            system does not cover the Stock, the price of a share of Stock on
            such date on the principal national securities exchange on which the
            Stock is listed, or if no sale of Stock took place on such date, the
            price of a share of Stock on the most recent day on which a sale of
            a share of Stock took place as recorded by such system or on such
            exchange, as the case may be; or (iii) if the Stock is neither
            listed on such date on a national securities exchange nor traded in
            the over-the-counter market, as determined by the Committee on an
            annual basis, within 45 days after the completion of the audit of
            the Company's annual financial statements.

                                       2
<PAGE>

            (m) Participant. An individual to whom an Award has been made under
            the Plan. Awards may be made to any employee, director, officer or
            consultant to the Company, or any other individual providing
            services to, the Company. However, incentive stock options may be
            granted only to individuals who are employed by the Company or by a
            subsidiary corporation (within the meaning of Section 424(f) of the
            Code) of the Company, including a subsidiary that becomes such after
            the adoption of the Plan.

            (n) Stock. Authorized and issued or unissued shares of Common Stock
            of the Company or any security issued in exchange or substitution
            therefor.

      3. Stock Available for Awards. Subject to Section 11 hereof, a total of
12,000,000 shares of Stock shall be available for issuance pursuant to Awards
granted under the Plan. Shares of Stock may be made available from the
authorized but unissued shares of the Company or from shares held in the
Company's treasury and not reserved for some other purpose. For purposes of
determining the number of shares of Stock issued under the Plan, no shares shall
be deemed issued until they are actually delivered to a Participant, or such
other person in accordance with Section 7 hereof. Shares of Stock related to
Awards, or portions of Awards, that are forfeited, cancelled or terminated,
expire unexercised, are surrendered in exchange for other Awards, or are settled
in such manner that all or some of the shares of Stock covered by an Award are
not and will not be issued to a Participant, shall be restored to the total
number of shares of Stock available for issuance pursuant to Awards. Further,
shares tendered to or withheld by the Company in connection with the exercise of
stock options, or the payment of tax withholding on any Award, shall also be
available for future issuance under Awards.

      4. Administration. The Plan shall be administered by the Committee, which
Committee shall have full power to select Participants, to grant Awards to
interpret the Plan, to grant waivers of Award restrictions to whom Awards may be
granted from time to time, to continue, accelerate or suspend exercisability,
vesting or payment of an Award and to adopt such rules, regulations and
guidelines for carrying out the Plan as it may deem necessary or proper. The
interpretation and construction by the Committee of any provision of this Plan
or of any agreement or document evidencing the grant of any Award and any
determination by the Committee pursuant to any provision of this Plan or any
such agreement, notification or document, shall be final and conclusive. No
member of the Committee shall be liable to any person for any such action taken
or determination made in good faith.

      5. Awards. The Committee shall determine the types and timing of Awards to
be made to each Participant and shall set forth in the related Award Agreement
the terms, conditions, performance requirements, and limitations applicable to
each Award. Awards may include those listed below in this Section 5. Awards may
be granted singly, in combination or in tandem, or in substitution for, or as
alternatives to, grants or rights under any other benefit plan of the Company,
including any plan of any entity acquired by, or merged with or into, the
Company. Awards shall be effected through Award Agreements executed by the
Company in such forms as are approved by the Committee from time to time.

                                       3
<PAGE>

      The Committee may determine to make any or all of the following Awards:

      (a) Stock Options. A grant of a right to purchase a specified number of
      shares of Stock at an exercise price not less than 100% of the Option
      Price of the Stock on the date of grant, in accordance with Subsection (i)
      below, provided that, in the case of a stock option granted retroactively
      in tandem with or as substitution for another award granted under any plan
      of the Company or plan of any entity acquired by, or merged with or into
      the Company, the exercise price may be the same as the purchase or
      designated price of such other award. If the optionee is an owner of stock
      (as determined under Section 424(d) of the Internal Revenue Code) that
      possesses more than 10% of the total combined voting power of all classes
      of stock of the Company or a parent or subsidiary corporation ("Ten
      Percent Stockholder"), the option price per share in the case of an
      incentive stock option shall not be less than 110% of the fair market
      value of a share of Common Stock on the date of the option grant. A stock
      option may be in the form of (i) an incentive stock option ("Incentive
      Stock Option" or "ISO") which, in addition to being subject to such terms,
      conditions and limitations as are established by the Committee, complies
      with Section 422 of the Code or (ii) a non-qualified stock option subject
      to such terms, conditions and limitations as are established by the
      Committee. The aggregate Fair Market Value (as determined as of the time
      of grant) of the Stock with respect to which incentive stock options are
      exercisable for the first time by an employee in any calendar year under
      the Plan (and/or any other incentive stock option plans of the Company)
      shall not exceed $100,000. To the extent that any Stock Option is not
      designated as an Incentive Stock Option or even if so designated does not
      qualify as an Incentive Stock Option, it shall constitute a Nonqualified
      Stock Option.

      Stock Options granted under the Plan shall be subject to the following
      terms and conditions and shall contain such additional terms and
      conditions as the Committee shall deem desirable and set forth on the
      Award Agreement:

            (i) OPTION PRICE. The option price per share of Common Stock shall
            not be less than the Fair Market Value of the Common Stock subject
            to the Stock Option on the date of grant; provided, however, that
            for any Nonqualified Stock Option, the option price per share of
            Common Stock may, alternatively, be fixed at any price deemed to be
            fair and reasonable, as of the date of grant, by the Committee.

            (ii) OPTION TERM. The term of each Stock Option shall be fixed by
            the Committee, but no Incentive Stock Option shall be exercisable
            more than 10 years after the date the Stock Option is granted.

            (iii) EXERCISABILITY. Except as otherwise provided herein, Stock
            Options shall be exercisable at such time or times and subject to
            such terms and conditions as shall be determined by the Committee.
            If the Committee provides that any Stock Option is exercisable only
            in installments, the Committee may at any time waive such
            installment exercise provisions, in whole or in part, based on such
            factors as the Committee may determine. In addition, the Committee
            may at any time accelerate the exercisability of any Stock Option.

                                       4
<PAGE>

            (iv) PAYMENT OF EXERCISE PRICE. The price at which shares of Stock
            may be purchased under a Stock Option shall be paid in full in cash
            at the time of the exercise or, if permitted by the Committee, by
            means of tendering Stock or surrendering another Award or any
            combination thereof. The Committee shall determine acceptable
            methods of tendering Stock or other Awards and may impose such
            conditions on the use of Stock or other Awards to exercise a Stock
            Option as it deems appropriate.

      (b) Stock Appreciation Rights. A right to receive a payment, in cash or
      Stock, equal in value to the excess of the Fair Market Value of a
      specified number of shares of Stock on the date the stock appreciation
      right ("SAR") is exercised over the grant price of the SAR, which shall
      not be less than 100% of the Fair Market Value on the date of grant of
      such SAR, as determined by the Committee, provided that if an SAR is
      granted in tandem with or in substitution for another award granted under
      any plan of the Company, the grant price may be the same as the exercise
      or designated price of such other award.

      (c) Stock Awards. An Award made in Stock or denominated in units of Stock.
      All or part of any stock award may be subject to conditions established by
      the Committee, and set forth in the Award Agreement, which may include,
      but are not limited to, continuous service with the Company, achievement
      of specific business objectives, increases in specified indices, attaining
      growth rates, and other comparable measurements of the Company
      performance.

      6. Tax Withholding. Prior to the payment or settlement of any Award, the
Participant must pay, or make arrangements acceptable to the Company for the
payment of, any and all federal, state and local tax withholding that in the
opinion of the Company is required by law. The Company shall have the right to
deduct applicable taxes from any Award payment and withhold, at the time of
delivery or vesting of shares under the Plan, an appropriate number of shares
for payment of taxes required by law or to take such other action as may be
necessary in the opinion of the Company to satisfy all obligations for
withholding of such taxes.

      7. Transferability. No Award shall be transferable or assignable, or
payable to or exercisable by, anyone other than the Participant to whom it was
granted, except, (a) by law, will or the laws of descent and distribution, (b)
as a result of the disability of a Participant or (c) that the Committee (in the
form of an Award Agreement or otherwise) may permit transfers of Awards by gift
or otherwise to a member of a Participant's immediate family and/or trusts whose
beneficiaries are members of the Participant's immediate family, or to such
other persons or entities as may be approved by the Committee. Notwithstanding
the foregoing, in no event shall ISOs be transferable or assignable other than
by will or by the laws of descent and distribution.

                                       5
<PAGE>

      8. Termination of Employment. If the employment of a Participant
terminates, other than as a result of the death or disability of a Participant,
all unexercised, deferred and unpaid Awards shall be canceled immediately,
unless the Award Agreement provides otherwise. In the event of the death of a
Participant or in the event a Participant is deemed by the Company to be
Disabled, the Participant or the Participant's estate, beneficiaries or
representative, as the case may be, shall have the rights and duties of the
Participant under the applicable Award Agreement.

      9. Change in Control.

            (a)   Subject to the provisions of Section 9(b) below, in the event
                  of a Change in Control, each Stock Option shall, at the
                  discretion of the Committee, either be cancelled in exchange
                  for a payment in cash of an amount equal to the excess, if
                  any, of the Change in Control Price over the exercise price
                  for such Stock Option, or be fully exercisable regardless of
                  the exercise schedule otherwise applicable to such Stock
                  Option and all restricted shares of Stock and all SARs shall
                  become nonforfeitable and be immediately transferable or
                  payable, as the case may be.

            (b)   Notwithstanding Section 9(a), no cancellation, acceleration of
                  exercisability, vesting, cash settlement or other payment
                  shall occur with respect to any Award or any class of Awards
                  if the Committee reasonably determines in good faith prior to
                  the occurrence of a Change in Control that such Award or
                  Awards shall be honored or assumed, or new rights substituted
                  therefore (such honored, assumed or substituted award
                  hereinafter called an "Alternative Award"), by a Participant's
                  employer (or for the parent or an Affiliate of such employer)
                  immediately following the Change in Control, provided that any
                  such Alternative Award must:

                  (i)   be based on stock which is traded on an established
                        securities market, or which will be so traded within 60
                        days of the Change in Control;

                  (ii)  provide such Participant (or each Participant in a class
                        of Participants) with rights and entitlements
                        substantially equivalent to or be better than the
                        rights, terms and conditions applicable under such
                        Award, including, but not limited to, an identical or
                        better exercise or vesting schedule and identical or
                        better timing and methods of payment;

                  (iii) have substantially equivalent economic value to such
                        Award (determined at the time of Change in Control); and

                  (iv)  have terms and conditions which provide that in the
                        event that the Participant's employment is involuntarily
                        terminated or constructively terminated, any conditions
                        on a Participant's rights under, or any restrictions on
                        transfer or exercisabilithy applicable to, each such
                        Alternative Award shall be waived or shall lapse, as the
                        case may be.

                                       6
<PAGE>

For this purpose, a constructive termination shall mean a termination by a
Participant following a material reduction in the Participant's base salary or a
Participant's incentive compensation opportunity or a material reduction in the
Participant's responsibilities, in either case without the Participant's written
consent.

      10. Term, Amendment, and Termination of the Plan. The Plan will terminate
on November 9, 2016. Awards outstanding as of the date of any such termination
shall not be affected or impaired by the termination of the Plan.

The Board may amend, alter, or discontinue the Plan to the extent it deems
appropriate in the best interest of the Company, but no amendment, alteration or
discontinuation shall be made which would (a) impair the rights of an optionee
under a Stock Option or a recipient of a SAR or restricted share of Stock
theretofore granted without the optionee's or recipient's consent, except such
an amendment which is necessary to cause any Award or transaction under the Plan
to qualify, or continue to qualify, for the exemption provided by Rule 16b-3 or
(b) disqualify any Award or transaction under the Plan from the exemption
provided by Rule 16b-3. In addition, no such amendment shall be made without the
approval of the Company's stockholders to the extent such approval is required
by law or agreement.

The Committee may amend the terms of any Award Agreement, but no such amendment
shall impair the rights of any participant without the participant's consent
except such an amendment which is necessary to cause any Award or transaction
under the Plan to qualify, or to continue to qualify, for the exemption provided
by Rule 16b-3.

Subject to the above provisions, the Board shall have authority to amend the
Plan to take into account changes in law and tax and accounting rules as well as
other developments, and to grant Awards that qualify for beneficial treatment
under such rules without stockholder approval.

      11. Adjustments. In the event of any change in the outstanding Stock of
the Company by reason of a stock split, stock dividend, combination or
reclassification of shares, recapitalization, merger or similar event, the
Committee may adjust proportionally (a) the number of shares of Stock (i)
available for issuance under the Plan, and (ii) covered by outstanding Awards
denominated in stock or units of Stock; (b) the exercise and grant prices
related to outstanding Awards; and (c) the appropriate Fair Market Value and
other price determinations for such Awards as the Committee in its sole
discretion may in good faith determine to be equitably required in order to
prevent dilution or enlargement of the rights of Participants. Moreover, in the
event of any such transaction or event, the Committee may provide in
substitution for any or all outstanding Awards under this Plan such alternative
consideration as it may in good faith determine to be equitable under the
circumstances and may require in connection therewith the surrender of all
Awards so replaced. The Committee may also make or provide for such adjustments
in the number of Shares specified in Section 3 of this Plan as the Committee in
its sole discretion may in good faith determine to be appropriate in order to
reflect any transaction or event described in this Section 11. In the event of
any other change affecting the Stock or any distribution to holders of Stock,
such adjustments in the number and kind of shares and the exercise, grant and
conversion prices of the affected Awards as may be deemed equitable by the
Committee, including adjustments to avoid fractional shares, shall be made to
give proper effect to such event.

                                       7
<PAGE>

      12. Miscellaneous.

            (a) Any notice to the Company required by any of the provisions of
            the Plan shall be addressed to the Committee, c/o the Secretary of
            the Company, and shall become effective when it is received.

            (b) The Plan shall be unfunded and the Company shall not be required
            to establish any special account or fund or to otherwise segregate
            or encumber assets to ensure payment of any Award.

            (c) Nothing contained in the Plan shall prevent the Company from
            adopting other or additional compensation arrangements or plans,
            subject to shareholder approval if such approval is required, and
            such arrangements or plans may be either generally applicable or
            applicable only in specific cases.

            (d) No Participant shall have any claim or right to be granted an
            Award under the Plan and nothing contained in the Plan shall be
            deemed or be construed to give any Participant the right to be
            retained in the employ of the Company or to interfere with the right
            of the Company to discharge any Participant at any time without
            regard to the effect such discharge may have upon the Participant
            under the Plan. Except to the extent otherwise provided in any plan
            or in an Award Agreement, no Award under the Plan shall be deemed
            compensation for purposes of computing benefits or contributions
            under any other plan of the Company.

            (e) The Plan and each Award Agreement shall be governed by the laws
            of the State of Delaware, excluding any conflicts or choice of law
            rule or principle that might otherwise refer construction or
            interpretation of the Plan to the substantive law of another
            jurisdiction.

            (f) The Committee shall have full power and authority to interpret
            the Plan and to make any determinations thereunder and the
            Committee's determinations shall be binding and conclusive.
            Determinations made by the Committee under the Plan need not be
            uniform and may be made selectively among individuals, whether or
            not such individuals are similarly situated.

            (g) If any provision of the Plan is or becomes or is deemed invalid,
            illegal or unenforceable in any jurisdiction, or would disqualify
            the Plan or any Award under any law deemed applicable by the
            Committee, such provision shall be construed or deemed amended or
            limited in scope to conform to applicable laws or, in the discretion
            of the Committee, it shall be stricken and the remainder of the Plan
            shall remain in full force and effect.

                                       8
<PAGE>

            (h) The Plan shall become effective on the date it is approved by
            the Board. The Committee may grant Awards subject to the condition
            that this Plan shall have been approved by the stockholders of the
            Company.

            (i) With respect to persons subject to Section 16 of the Exchange
            Act, transactions under this Plan are intended to comply with all
            applicable conditions of Rule 16b-3 or its successors under the
            Exchange Act. To the extent any provision of the Plan or action by
            the Committee fails to so comply, it shall be deemed null and void,
            to the extent permitted by law and deemed advisable by the
            Committee.

            (j) The Committee may grant Awards to employees who are subject to
            the tax laws of nations other than the United States, which Awards
            may have terms and conditions that differ from other Awards granted
            under the Plan for the purposes of complying with foreign tax laws.

                                       9* Materals marked "[REDACTED]*" in this document indicates that such portion has
been omitted pursuant to a request for confidential treatment and has been filed
with the Securities and Exchange Commission separately.

                                     [LOGO]

MANUFACTURING & NRE PROPOSAL
CORE:TX

FROM:                                     TO:

BYERS PEAK, INCORPORATED                  PERFORMANCE HEALTH TECHNOLOGIES
4975 MILLER STREET                        6654 GUNPARK DRIVE, 2ND FLOOR
WHEAT RIDGE, CO  80033                    BOULDER, CO 80301
[GRAPHIC] ISO 9001:2000 CERTIFIED

                                NOVEMBER 30, 2006

================================================================================
This proposal is considered "Byers Peak Confidential" and must be treated
according to the mutual non-disclosure provisions signed between PHT and Byers
Peak, Inc. Permission from Byers Peak, Inc. is required for distribution and/or
disclosure to any parties.
================================================================================

Proposal is valid through 12/30/07

1 of 7
<PAGE>

INTRODUCTION

      Byers Peak, Inc. (Byers Peak) is pleased to present this manufacturing
      transfer proposal for the core:tx product to Performance Health
      Technologies (PHT).

      Byers Peak is an ISO 9001:2000 certified and FDA registered contract
      manufacturing and services company whose goal is dedicated to exceed
      customer expectations in:

                                   o Cost

                                   o Quality

                                   o Delivery

      Byers Peak accomplishes this with a customer-first, open-book, and
      no-hassle business philosophy. As a result, we focus on the direct needs
      of the customer and their product.

      Byers Peak's full-service low to mid-volume flexible manufacturing
      capabilities includes:

            o   Project Management              o   Value Engineering

            o   Product Design & Validation     o   Sustaining Engineering

            o   Process Design & Validation     o   Depot Repair & Refurbishment

            o   Quick-turn Prototyping          o   Field Service

            o   World-Wide Distribution

                                    [PHOTO]

      BYERS PEAK [ELEVATION 12,804 FT.] IS LOCATED WEST OF WINTER PARK,
      COLORADO. THE PEAK IS NAMED AFTER WILLIAM N. BYERS, FOUNDER OF THE ROCKY
      MOUNTAIN NEWS IN 1859.

      IN A RACE TO BE THE FIRST PUBLISHED NEWSPAPER IN COLORADO, MR. BYERS'
      INNOVATION AND DETERMINATION BEAT HIS COMPETITION BY 20 MINUTES [MERRICK'S
      CHERRY CREEK PIONEER]. TODAY, THE ROCKY MOUNTAIN NEWS, COMBINED WITH THE
      DENVER POST, IS DENVER'S LARGEST CIRCULATING NEWSPAPER!

      SIMILARLY, BYERS PEAK `THE COMPANY' STRIVES TO BE THE LEADER IN ITS
      MARKETPLACE THROUGH AN EXTREMELY COMPETITIVE PRICE STRUCTURE, UNSURPASSED
      QUALITY AND EXCEEDING CUSTOMER'S DELIVERY EXPECTATIONS.

Page 2
<PAGE>

EXECUTIVE SUMMARY

      Today, we are pleased to be considered for this opportunity. We look
      forward to assisting PHT with the outsourcing of medical device
      manufacturing in an environment supportive of applicable regulatory
      compliance.

      As requested, this proposal details product and non-recurring expenses
      that would be associated with the manufacture of the core:tx product by
      Byers Peak, Inc.

            --------------------------------------------------------------------
                                                FULLY ASSEMBLED PRICE, INCLUDING
            PRODUCT       BUILD QUANTITY       MATERIALS, LABOR, TEST AND MARGIN
            --------------------------------------------------------------------
            CORE:TX             100                        $[REDACTED]*
            --------------------------------------------------------------------
                                250                        $[REDACTED]*
            --------------------------------------------------------------------
                                500                        $[REDACTED]*
            --------------------------------------------------------------------

             *Based on components identified in the attached Bill Of Material

PROJECT SUMMARY

      OBJECTIVE

      To provide a finished product which meet the following:

            o     Specification
            o     Timely delivery, including scalable production
            o     Flexibility in monthly forecasted volumes (currently estimated
                  at between 100 and 500 units per build)

      SCOPE OF WORK

      The proposed scope of this manufacturing project includes these work
      products:

            o     Materials management, assembly, test, packaging, labeling,
                  finished goods warehousing, and product delivery.
            o     Manufacturing Engineering (ongoing)

      DELIVERABLES

      Byers Peak will provide for this manufacturing effort:

            o     Production of finished systems

Page 3
<PAGE>

MANUFACTURING PHASE PROCESS

      Byers Peak utilizes a phased manufacturing process for consistency,
      optimization of internal resources, experience and expertise. Each project
      is unique and may not require some elements of this process.

      PROJECT PLANNING AND TRACKING

            o     Develop project plan.
            o     Transfer product documentation.
            o     Provide scheduled project updates.

      REQUIREMENTS DEFINITION
            o     Define project requirements.

      DESIGN
            o     Develop component specifications based on information from
                  customer.
            o     Draft BOM structure.

      PROCESS DEVELOPMENT
            o     Develop DHRs and DDRs.

      VERIFICATION/VALIDATION
            o     Transfer applicable fixtures or other capital equipment
                  (as required).
            o     Entrance into metrology and/or maintenance programs,
                  as applicable.

      DESIGN TRANSFER
            o     Material Management including movement of inventory, planning
            o     Perform component first article and inspection & release
            o     Pilot build
            o     Present first article samples to customer
            o     Customer acceptance
            o     DMR Engineering Change Order release

MANUFACTURING ESTIMATES

MANUFACTURING- NRE

Some Non-Recurring Engineering (NRE) efforts associated with the startup of
manufacturing. These activities include:

      o     Project Plan development
      o     Oversight of product Device Master Record (DMR) transfer and release
      o     Incorporation of DMR into Quality System
      o     Approved Vendor List (AVL) management
      o     Generation of component files, first article inspections & release
      o     Execute process validation/documentation generation
      o     Pilot plant initial assembly and process validation

Page 4
<PAGE>

Estimates are provided in the RESOURCE SUMMARY table below. NRE estimates are
typically performed on a time and material basis.

<TABLE>
<CAPTION>
BYERS PEAK, INC. RESOURCE SUMMARY NRE
-------------------------------------------------------------------------------------------------------------------------
     RESOURCE         RATE/HR                 DESCRIPTION                      ESTIMATED COST
-------------------------------------------------------------------------------------------------------------------------
<S>                 <C>         <C>                                     <C>                                 <C>
Engineer II         $           Technical support, project planning,    Project Management                  $[REDACTED]*
                                tracking, verification of any current   [REDACTED]* hours
                                documentation.
                                                                        Process validation generation

                                                                        Test validation generation
-------------------------------------------------------------------------------------------------------------------------
Materials           $           Drwg./Spec. Review                      [REDACTED]* hours
Mgt.                            Component Sourcing                      [REDACTED]* hours
(pilot production)              Supplier Review, AVL management
                                Material Purchase                       [REDACTED]* hours
                                First Article Inspection (all)          [REDACTED]* hours
                                Stores set-up                           [REDACTED]* hours
                                                                        [REDACTED]* hours
-------------------------------------------------------------------------------------------------------------------------
Technical           $           Execute assembly and validations.       Estimated at 16 hours               $[REDACTED]*
Assistance                      Technical support for pilot production
                                run
-------------------------------------------------------------------------------------------------------------------------
                                                 BYERS PEAK, INC. MANUFACTURING NRE TOTAL
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

      NOTE:

      o     [REDACTED]* NRE expenses above do not reflect changes that may be
            incurred for regulatory approvals (e.g. Regulatory Submissions or
            testing costs associated with certifying products to requirements of
            UL, CE, etc.).

      o     Product documentation and validation efforts (if requested) will
            begin once PHT issues a Purchase Order for the NRE efforts noted
            above.

SUPPLIER NRE

NOT APPLICABLE

MANUFACTURING- PRODUCTION VOLUME

Pricing per unit is calculated as follows:

      [REDACTED]*

Manufacturing Product Estimates for the core:tx are as follows:

    ---------------------------------------------------------------------
    CORE:TX                100 Build         250 Build        500 Build
    ---------------------------------------------------------------------
    Materials*            [REDACTED]*       [REDACTED]*      [REDACTED]*
    ---------------------------------------------------------------------
    Labor                 [REDACTED]*       [REDACTED]*      [REDACTED]*
    ---------------------------------------------------------------------
    Margin                [REDACTED]*       [REDACTED]*      [REDACTED]*
    ---------------------------------------------------------------------
    TOTAL UNIT COST       [REDACTED]*       [REDACTED]*      [REDACTED]*
    ---------------------------------------------------------------------

Additional benefits of selecting Byers Peak include:

      o     No raw-material stocking fee.
      o     No mark-up or administrative fees for capital equipment purchases.
      o     No Finished Goods storage fees for inventories of 30 units or less.

Page 5
<PAGE>

REPAIR DEPOT OPTION

      Byers Peak's strength comes from its ability to provide comprehensive,
      cost-effective repair depot services.

      o     Optional Post Warranty Repair and Complaint Investigation rates are
            $[REDACTED]*/hr for labor plus materials with [REDACTED]*% margin
            added to both.

            o     Repair Depot includes root cause analysis, repair, report
                  generation and trending) if desired.

ASSUMPTIONS/NOTATIONS

      1.    Costing is based on production runs of 100, 250, or 500 units.

      2.    A Bill of Materials provided by Quest Product Development was
            utilized for product material quoting and the accuracy of the
            material cost is based on this information.

      3.    This proposal assumes that product not captured in the attached
            spreadsheet will be provided by PHT and that any changes in the BOM
            since the last build will require a requoting of those specific
            materials.

      4.    Byers Peak's quality system will be utilized for any validations
            required, DMR structure and the production of this product.

      5.    PHT will provide direction for, and participate in, sustained
            engineering efforts for product and process as required:

            a.    Change-order review and approval process
            b.    Review and approval of planning and risk mitigation
            c.    Product configuration release (DMR)
            d.    Configuration change review and approval

      6.    Patent requirements are not within the scope of Byers Peak's
            responsibilities.

      7.    Product certification efforts, such as UL, CE, ASTM ship
            qualifications are not included.

      8.    PHT will provide any required test fixtures or will be invoiced for
            any custom fixturing. No purchases will be made without prior
            approval.

      9.    PHT will provide input for development of traceability requirements.

FINISHED GOODS STORES

There are currently no plans to carry finished goods.

Page 6
<PAGE>

BUSINESS DETAILS

The costs associated within this proposal are two-fold:

1)    NRE efforts will begin once Byers Peak receives an approved copy of this
      proposal and a Purchase Order noted in a not-to-exceed amount for costs
      noted in the NRE section of this proposal.

2)    Production activities will begin when a second purchase order is issued
      for the desired number of production of units.

3)    Repair Depot services will require a separate purchase order (if
      requested). Terms for

ESTIMATED LEAD-TIME

First Article: 20 weeks from the time Byers Peak has received PO for product.
This is due to specific lead-times provided for circuit cards and may be
mitigated to approximately 6 weeks with Byers Peak's review/assistance

6-8 week leadtime for subsequent orders.

Production volumes can begin upon customer First Article sample approval.

WARRANTY

Byers Peak warrants the quality of its workmanship to be free from controllable
defects for a period of [REDACTED]* days.

TERMS

NRE invoices are due on receipt.

Product Payment and Repair Depot terms are net 30.

Should client opt to cancel or modify the program, they will be invoiced for
work performed and equipment & materials committed (not to exceed purchase order
quantity).

PROJECT INITIATION

Byers Peak currently has the capacity to initiate the project upon approval and
receipt of the NRE purchase order.

Acknowledged by:

                                                /s/ Robert D. Prunetti
                                         --------------------------------------
                                         Robert D. Prunetti
                                         President and Chief Executive Officers

                                         --------------------------------------
                                         Date

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