Document:

RPM ADVANTAGE, INC.
2006 STOCK INCENTIVE PLAN

1.    Purpose.    The purpose of the 2006 Stock Incentive Plan of
RPM Advantage, Inc. is to further align the interests of employees,
directors and non-employee Consultants with those of the stockholders
by providing incentive compensation opportunities tied to the
performance of the Common Stock and by promoting increased ownership
of the Common Stock by such individuals. The Plan is also intended
to advance the interests of the Company and its stockholders by
attracting, retaining and motivating key personnel upon whose
judgment, initiative and effort the successful conduct of the
Companys business is largely dependent.

2.    Definitions.    Wherever the following capitalized terms
are used in the Plan, they shall have the meanings specified below:

Affiliate means (i) any entity that would be treated as an
affiliate of the Company for purposes of Rule 12b-2 under the
Exchange Act and (ii) any joint venture or other entity in which
the Company has a direct or indirect beneficial ownership interest
representing at least one-third (1/3) of the aggregate voting power
of the equity interests of such entity or one-third (1/3) of the
aggregate fair market value of the equity interests of such entity,
as determined by the Committee.

Award means an award of a Stock Option, Stock Award, or Restricted
Stock Award granted under the Plan.

Award Agreement means a written or electronic agreement entered
into between the Company and a Participant setting forth the terms
and conditions of an Award granted to a Participant.

Board means the Board of Directors of the Company.

Code means the Internal Revenue Code of 1986, as amended.

Common Stock means the Companys common stock, $0.001 par
value per share.

Committee means the Compensation Committee of the Board, or such
other committee of the Board appointed by the Board to administer
the Plan, or if no such committee exists, the Board.

Company means RPM Advantage, Inc., a Nevada corporation.

Consultantmeans any person which is a consultant or advisor to
the Company and which is a natural person and who provides bona fide
services to the Company which are not in connection with the offer
or sale of securities in a capital-raising transaction for the
Company, and do not directly or indirectly promote or maintain a
market for the Companys securities.

Date of Grant means the date on which an Award under the Plan is
made by the Committee, or such later date as the Committee may
specify to be the effective date of an Award.

Disability means a Participant being considered disabled
within the meaning of Section 409A(a)(2)(C) of the Code, unless
otherwise provided in an Award Agreement.

Eligible Person means any person who is an employee of the Company
or any Affiliate or any person to whom an offer of employment with
the Company or any Affiliate is extended, as determined by the
Committee, or any person who is a Non-Employee Director, or any
person who is Consultant to the Company.

Exchange Act means the Securities Exchange Act of 1934, as amended.

       Fair Market Value means the mean between the highest and
lowest reported sales prices of the Common Stock on the New York
Stock Exchange Composite Tape or, if not listed on such exchange, on
any other national securities exchange on which the Companys common
stock is listed or on The Nasdaq Stock Market, or, if not so listed
on any other national securities exchange or The Nasdaq Stock Market,
then the average of the bid price of the Companys common stock
during the last five trading days on the OTC Bulletin Board
immediately preceding the last trading day prior to the date with
respect to which the Fair Market Value is to be determined. If the
Companys common stock is not then publicly traded, then the Fair
Market Value of the Common Stock shall be the book value of the
Company per share as determined on the last day of March, June,
September, or December in any year closest to the date when the
determination is to be made. For the purpose of determining book
value hereunder, book value shall be determined by adding as of the
applicable date called for herein the capital, surplus, and undivided
profits of the Company, and after having deducted any reserves
theretofore established; the sum of these items shall be divided
by the number of shares of the Companys common stock outstanding
as of said date, and the quotient thus obtained shall represent
the book value of each share of the Companys common stock.

Incentive Stock Option means a Stock Option granted under Section
6 hereof that is intended to meet the requirements of Section 422
of the Code and the regulations thereunder.

Non-Employee Director means any member of the Board who is not
an employee of the Company.

Nonqualified Stock Option means a Stock Option granted under
Section 6 hereof that is not an Incentive Stock Option.

Participant means any Eligible Person who holds an outstanding
Award under the Plan.

Plan means the 2005 Stock Incentive Plan of RPM Advantage, Inc.
as set forth herein, as amended from time to time.

Restricted Stock Award means a grant of shares of Common Stock to
an Eligible Person under Section 8 hereof that are issued subject to
such vesting and transfer restrictions as the Committee shall
determine and set forth in an Award Agreement.

Service means a Participants employment with the Company or any
Affiliate or a Participants service as a Non-Employee Director with
the Company, as applicable.

Stock Award means a grant of shares of Common Stock to an Eligible
Person under Section 7 hereof that are issued free of transfer
restrictions and forfeiture conditions.

Stock Option means a contractual right granted to an Eligible
Person under Section 6 hereof to purchase shares of Common Stock
at such time and price, and subject to such conditions, as are set
forth in the Plan and the applicable Award Agreement.

3.    Administration.

3.1    Committee Members.    The Plan shall be administered by a
Committee comprised of one or more members of the Board, or if no
such committee exists, the Board.

3.2    Committee Authority.    The Committee shall have such powers
and authority as may be necessary or appropriate for the Committee
to carry out its functions as described in the Plan. Subject to the
express limitations of the Plan, the Committee shall have authority
in its discretion to determine the Eligible Persons to whom, and the
time or times at which, Awards may be granted, the number of shares,
units or other rights subject to each Award, the exercise, base or
purchase price of an Award (if any), the time or times at which an
Award will become vested, exercisable or payable, the performance
goals and other conditions of an Award, the duration of the Award,
and all other terms of the Award. Subject to the terms of the Plan,
the Committee shall have the authority to amend the terms of an Award
in any manner that is not inconsistent with the Plan, provided that
no such action shall adversely affect the rights of a Participant
with respect to an outstanding Award without the Participants
consent. The Committee shall also have discretionary authority to
interpret the Plan, to make factual determinations under the Plan,
and to make all other determinations necessary or advisable for
Plan administration, including, without limitation, to correct
any defect, to supply any omission or to reconcile any inconsistency
in the Plan or any Award Agreement hereunder. The Committee may
prescribe, amend, and rescind rules and regulations relating to
the Plan. The Committees determinations under the Plan need not
be uniform and may be made by the Committee selectively among
Participants and Eligible Persons, whether or not such persons
are similarly situated. The Committee shall, in its discretion,
consider such factors as it deems relevant in making its
interpretations, determinations and actions under the Plan
including, without limitation, the recommendations or advice
of any officer or employee of the Company or such attorneys,
consultants, accountants or other advisors as it may select.
All interpretations, determinations and actions by the Committee
shall be final, conclusive, and binding upon all parties.

3.3    Delegation of Authority.    The Committee shall have the right,
from time to time, to delegate to one or more officers of the Company
the authority of the Committee to grant and determine the terms and
conditions of Awards granted under the Plan, subject to the requirements
of state law and such other limitations as the Committee shall
determine. In no event shall any such delegation of authority be
permitted with respect to Awards to any members of the Board or to
any Eligible Person who is subject to Rule 16b-3 under the Exchange
Act or Section 162(m) of the Code. The Committee shall also be permitted
to delegate, to any appropriate officer or employee of the Company,
responsibility for performing certain ministerial functions under
the Plan. In the event that the Committees authority is delegated
to officers or employees in accordance with the foregoing, all
provisions of the Plan relating to the Committee shall be interpreted
in a manner consistent with the foregoing by treating any such
reference as a reference to such officer or employee for such purpose.
Any action undertaken in accordance with the Committees delegation of
authority hereunder shall have the same force and effect as if such
action was undertaken directly by the Committee and shall be deemed
for all purposes of the Plan to have been taken by the Committee.

4.    Shares Subject to the Plan.

4.1    Maximum Share Limitations.    Subject to Section 4.3 hereof,
the maximum aggregate number of shares of Common Stock that may be
issued and sold under all Awards granted under the Plan shall be Sixteen
Million (16,000,000) shares. Shares of Common Stock issued and sold under
the Plan may be either authorized but unissued shares or shares held
in the Companys treasury. To the extent that any Award involving the
issuance of shares of Common Stock is forfeited, cancelled, returned
to the Company for failure to satisfy vesting requirements or other
conditions of the Award, or otherwise terminates without an issuance
of shares of Common Stock being made thereunder, the shares of Common
Stock covered thereby will no longer be counted against the foregoing
maximum share limitations and may again be made subject to Awards
under the Plan pursuant to such limitations. Any Awards or portions
thereof that are settled in cash and not in shares of Common Stock
shall not be counted against the foregoing maximum share limitations.

4.2    Adjustments.    If there shall occur any change with respect
to the outstanding shares of Common Stock by reason of any
recapitalization, reclassification, stock dividend, extraordinary
dividend, stock split, or other distribution with respect to the
shares of Common Stock, or any merger, reorganization, consolidation,
combination, spin-off or other similar corporate change, or any other
change affecting the Common Stock, the Committee may, in the manner
and to the extent that it deems appropriate and equitable to the
Participants and consistent with the terms of the Plan, cause an
adjustment to be made in (i) the maximum number and kind of shares
provided in Section 4.1 hereof, (ii) the number and kind of shares
of Common Stock, or other rights subject to then outstanding Awards,
(iii) the exercise or base price for each share or other right
subject to then outstanding Awards, and (iv) any other terms of
an Award that are affected by the event. Notwithstanding the
foregoing, in the case of Incentive Stock Options, any such
adjustments shall, to the extent practicable, be made in a
manner consistent with the requirements of Section 424(a)
of the Code.

4.3 Anti-Dilution. Notwithstanding anything contained in the Plan
to cover the contrary, including any adjustments discussed in this
Section 4, the maximum aggregate number of shares of Common Stock
that may be issued and sold under all Awards granted under the Plan
shall be anti-dilutive in the event of a reverse stock split by the
Company and shall not result in any reduction in the number of shares
available and authorized under the Plan at the effective time of such
reverse stock split(s).

5.    Participation and Awards.

5.1    Designations of Participants.    All Eligible Persons are
eligible to be designated by the Committee to receive Awards and
become Participants under the Plan. The Committee has the authority,
in its discretion, to determine and designate from time to time those
Eligible Persons who are to be granted Awards, the types of Awards to
be granted and the number of shares of Common Stock or units subject
to Awards granted under the Plan. In selecting Eligible Persons to be
Participants and in determining the type and amount of Awards to be
granted under the Plan, the Committee shall consider any and all
factors that it deems relevant or appropriate.

5.2    Determination of Awards.    The Committee shall determine the
terms and conditions of all Awards granted to Participants in accordance
with its authority under Section 3.2 hereof. An Award may consist of
one type of right or benefit hereunder or of two or more such rights
or benefits granted in tandem or in the alternative. In the case of
any fractional share or unit resulting from the grant, vesting, payment
or crediting of dividends or dividend equivalents under an Award, the
Committee shall have the discretionary authority to (i) disregard such
fractional share or unit, (ii) round such fractional share or unit to
the nearest lower or higher whole share or unit, or (iii) convert such
fractional share or unit into a right to receive a cash payment. To the
extent deemed necessary by the Committee, an Award shall be evidenced by
an Award Agreement as described in Section 11.1 hereof.

6.    Stock Options.

6.1    Grant of Stock Options.    A Stock Option may be granted to any
 Eligible Person selected by the Committee. Subject to the provisions
of Section 6.8 hereof and Section 422 of the Code, each Stock Option
shall be designated, in the discretion of the Committee, as an
Incentive Stock Option or as a Nonqualified Stock Option.

6.2    Exercise Price.    The exercise price per share for any Stock
Option shall be determined by the Committee in its discretion on the
Date of Grant.

6.3    Vesting of Stock Options.    The Committee shall in its
discretion prescribe the time or times at which, or the conditions
upon which, a Stock Option or portion thereof shall become vested
and/or exercisable, and may accelerate the vesting or exercisability
of any Stock Option at any time, provided, however, that any Stock Option
shall vest at the rate of at least twenty percent (20%) per year over
five (5) years from the date the Stock Option is granted, subject to
reasonable conditions as may be provided for in the Award Agreement.
However, in the case of a Stock Option granted to officers,
Non-employee Directors, managers or Consultants of the Company, the
Stock Option may become fully exercisable, subject to reasonable
conditions, at anytime or during any period established by the Company.
The requirements for vesting and exercisability of a Stock Option may be
based on the continued Service of the Participant with the Company or its
Affiliates for a specified time period (or periods) or on the attainment
of specified performance goals established by the Committee in its
discretion.

6.4    Term of Stock Options.    The Committee shall in its discretion
prescribe in an Award Agreement the period during which a vested Stock
Option may be exercised, provided that the maximum term of a Stock Option
shall be ten years from the Date of Grant. Except as otherwise provided
in this Section 6 or as otherwise may be provided by the Committee, no
Stock Option issued to an employee or a Non-Employee Director of the
Company may be exercised at any time during the term thereof unless
the employee or a Non-Employee Director Participant is then in the
Service of the Company or one of its Affiliates.

6.5    Termination of Service.    Subject to Section 6.8 hereof with
respect to Incentive Stock Options, the Stock Option of any Participant
whose Service with the Company or one of its Affiliates is terminated
for any reason shall terminate on the earlier of (A) the date that the
Stock Option expires in accordance with its terms or (B) unless
otherwise provided in an Award Agreement, and except for termination
for cause (as described in Section 10.2 hereof), the expiration of the
applicable time period following termination of Service, in accordance
with the following: (1) twelve months if Service ceased due to Disability,
(2) eighteen months if Service ceased at a time when the Participant is
eligible to elect immediate commencement of retirement benefits at a
specified retirement age under a pension plan to which the Company or
any of its Affiliates had made contributions, (3) eighteen months if
the Participant died while in the Service of the Company or any of
its Affiliates, or (iv) three months if Service ceased for any other
reason. During the foregoing applicable period, except as otherwise
specified in the Award Agreement or in the event Service was terminated
by the death of the Participant, the Stock Option may be exercised by
such Participant in respect of the same number of shares of Common
Stock, in the same manner, and to the same extent as if he or she
had remained in the continued Service of the Company or any Affiliate
during the first three months of such period; provided that no additional
rights shall vest after such three months. The Committee shall have
authority to determine in each case whether an authorized leave of
absence shall be deemed a termination of Service for purposes hereof,
as well as the effect of a leave of absence on the vesting and
exercisability of a Stock Option. Unless otherwise provided by the
Committee, if an entity ceases to be an Affiliate of the Company or
otherwise ceases to be qualified under the Plan or if all or
substantially all of the assets of an Affiliate of the Company
are conveyed (other than by encumbrance), such cessation or action,
as the case may be, shall be deemed for purposes hereof to be a
termination of the Service.

6.6    Stock Option Exercise; Tax Withholding.    Subject to such terms
and conditions as shall be specified in an Award Agreement, a Stock
Option may be exercised in whole or in part at any time during the
term thereof by notice in the form required by the Company, together
with payment of the aggregate exercise price therefor and applicable
withholding tax. Payment of the exercise price shall be made in the
manner set forth in the Award Agreement, unless otherwise provided
by the Committee: (i) in cash or by cash equivalent acceptable to the
Committee, (ii) by payment in shares of Common Stock that have been
held by the Participant for at least six months (or such period as
the Committee may deem appropriate, for accounting purposes or otherwise)
valued at the Fair Market Value of such shares on the date of exercise,
(iii) through an open-market, broker-assisted sales transaction pursuant
to which the Company is promptly delivered the amount of proceeds necessary
to satisfy the exercise price, (iv) by a combination of the methods
described above or (v) by such other method as may be approved by the
Committee and set forth in the Award Agreement. In addition to and at
the time of payment of the exercise price, the Participant shall pay to
the Company the full amount of any and all applicable income tax,
employment tax and other amounts required to be withheld in connection
with such exercise, payable under such of the methods described above
for the payment of the exercise price as may be approved by the Committee
and set forth in the Award Agreement.

6.7    Limited Transferability of Nonqualified Stock Options.
All Stock Options shall be nontransferable except (i) upon the
Participants death, in accordance with Section 11.2 hereof or (ii)
in the case of Nonqualified Stock Options only, for the transfer of all
or part of the Stock Option to a Participants family member
(as defined for purposes of the Form S-8 registration statement under
the Securities Act of 1933), as may be approved by the Committee in its
discretion at the time of proposed transfer. The transfer of a Nonqualified
Stock Option may be subject to such terms and conditions as the Committee
may in its discretion impose from time to time. Subsequent transfers of
a Nonqualified Stock Option shall be prohibited other than in accordance
with Section 11.2 hereof.

6.8    Additional Rules for Incentive Stock Options.

(a)    Eligibility.    An Incentive Stock Option may only be granted
to an Eligible Person who is considered an employee for purposes of
Treasury Regulation 1.421-7(h) with respect to the Company or any
Affiliate that qualifies as a subsidiary corporation with respect
to the Company for purposes of Section 424(f) of the Code.

(b)     Termination of Employment.    An Award of an Incentive Stock
Option may provide that such Stock Option may be exercised not later
than 3 months following termination of employment of the Participant
with the Company and all Subsidiaries, or not later than one year following
a permanent and total disability within the meaning of Section 22(e)(3)
of the Code, as and to the extent determined by the Committee to comply
with the requirements of Section 422 of the Code.

(c)    Other Terms and Conditions; Nontransferability.    Any Incentive
Stock Option granted hereunder shall contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as are deemed
necessary or desirable by the Committee, which terms, together with the
terms of the Plan, shall be intended and interpreted to cause such
Incentive Stock Option to qualify as an incentive stock option under
Section 422 of the Code. An Award Agreement for an Incentive Stock Option
ay provide that such Stock Option shall be treated as a Nonqualified Stock
Option to the extent that certain requirements applicable to incentive
 stock options under the Code shall not be satisfied. An Incentive Stock
Option shall by its terms be nontransferable other than by will or by
the laws of descent and distribution, and shall be exercisable during
the lifetime of a Participant only by such Participant.

(d)    Disqualifying Dispositions.    If shares of Common Stock acquired
by exercise of an Incentive Stock Option are disposed of within two
years following the Date of Grant or one year following the transfer
of such shares to the Participant upon exercise, the Participant shall,
promptly following such disposition, notify the Company in writing of
the date and terms of such disposition and provide such other information
regarding the disposition as the Company may reasonably require.

6.9    Repricing Prohibited.    Subject to the adjustment provisions
contained in Section 4.2 hereof, without the prior approval of the
Companys stockholders, evidenced by a majority of votes cast, neither
the Committee nor the Board shall cause the cancellation, substitution
or amendment of a Stock Option that would have the effect of reducing
the exercise price of such a Stock Option previously granted under the
Plan, or otherwise approve any modification to such a Stock Option that
 would be treated as a repricing under the then applicable rules,
 regulations or listing requirements.

7.    Stock Awards.

7.1    Grant of Stock Awards.    A Stock Award may be granted to any
Eligible Person selected by the Committee. A Stock Award may be granted
for past services, in lieu of bonus or other cash compensation, as
directors compensation or for any other valid purpose as determined
by the Committee. A Stock Award granted to an Eligible Person represents
shares of Common Stock that are issued without restrictions on transfer
and other incidents of ownership and free of forfeiture conditions,
except as otherwise provided in the Plan and the Award Agreement. The
Committee may, in connection with any Stock Award, require the payment
of a specified purchase price.

7.2    Rights as Stockholder.    Subject to the foregoing provisions of
this Section 10 and the applicable Award Agreement, upon the issuance of
the Common Stock under a Stock Award the Participant shall have all rights
of a stockholder with respect to the shares of Common Stock, including the
right to vote the shares and receive all dividends and other distributions
paid or made with respect thereto.

8.    Restricted Stock Awards.

8.1    Grant of Restricted Stock Awards.    A Restricted Stock Award may
be granted to any Eligible Person selected by the Committee. The Committee
may require the payment by the Participant of a specified purchase price
in connection with any Restricted Stock Award.

8.2    Vesting Requirements.    The restrictions imposed on shares
granted under a Restricted Stock Award shall lapse in accordance with
the vesting requirements specified by the Committee in the Award
Agreement, provided that the Committee may accelerate the vesting
of a Restricted Stock Award at any time. Such vesting requirements
may be based on the continued Service of the Participant with the
Company or its Affiliates for a specified time period (or periods)
or on the attainment of specified performance goals established by
the Committee in its discretion. If the vesting requirements of a
Restricted Stock Award shall not be satisfied, the Award shall be
forfeited and the shares of Common Stock subject to the Award shall
be returned to the Company.

8.3    Restrictions.    Shares granted under any Restricted Stock Award
may not be transferred, assigned or subject to any encumbrance, pledge,
or charge until all applicable restrictions are removed or have expired,
 unless otherwise allowed by the Committee. Failure to satisfy any
applicable restrictions shall result in the subject shares of the
Restricted Stock Award being forfeited and returned to the Company.
The Committee may require in an Award Agreement that certificates
representing the shares granted under a Restricted Stock Award bear
a legend making appropriate reference to the restrictions imposed,
and that certificates representing the shares granted or sold under
a Restricted Stock Award will remain in the physical custody of an
escrow holder until all restrictions are removed or have expired.

8.4    Rights as Stockholder.    Subject to the foregoing provisions
of this Section 8 and the applicable Award Agreement, the Participant
shall have all rights of a stockholder with respect to the shares
granted to the Participant under a Restricted Stock Award, including
the right to vote the shares and receive all dividends and other
distributions paid or made with respect thereto. The Committee may
provide in an Award Agreement for the payment of dividends and
distributions to the Participant at such times as paid to stockholders
generally or at the times of vesting or other payment of the Restricted
Stock Award.

8.5    Section 83(b) Election.    If a Participant makes an election
pursuant to Section 83(b) of the Code with respect to a Restricted Stock
Award, the Participant shall file, within 30 days following the Date
of Grant, a copy of such election with the Company and with the Internal
Revenue Service, in accordance with the regulations under Section 83
of the Code. The Committee may provide in an Award Agreement that the
Restricted Stock Award is conditioned upon the Participants making or
refraining from making an election with respect to the Award under
Section 83(b) of the Code.

9.    Change in Control.

9.1    Effect of Change in Control.    Except to the extent an Award
Agreement provides for a different result (in which case the Award
Agreement will govern and this Section 9 of the Plan shall not be
applicable), notwithstanding anything elsewhere in the Plan or any
ules adopted by the Committee pursuant to the Plan to the contrary,
if a Triggering Event shall occur within the 12-month period beginning
with a Change in Control of the Company, then, effective immediately
prior to such Triggering Event, each outstanding Stock Option, to the
extent that it shall not otherwise have become vested and exercisable,
shall automatically become fully and immediately vested and exercisable,
 without regard to any otherwise applicable vesting requirement.

9.2    Definitions

(a)    Cause.    For purposes of this Section 9, the term Cause shall
mean a determination by the Committee that a Participant (i) has
been convicted of, or entered a plea of nolo contendere to, a crime
that constitutes a felony under Federal or state law, (ii) has engaged
in willful gross misconduct in the performance of the Participants
duties to the Company or an Affiliate or (iii) has committed a material
breach of any written agreement with the Company or any Affiliate with
respect to confidentiality, non-competition, non-solicitation or
similar restrictive covenant. Subject to the first sentence of
Section 9.1 hereof, in the event that a Participant is a party
to an employment agreement with the Company or any Affiliate that
defines a termination on account of Cause (or a term having
similar meaning), such definition shall apply as the definition of
a termination on account of Cause for purposes hereof, but only to
the extent that such definition provides the Participant with greater
rights. A termination on account of Cause shall be communicated by written
notice to the Participant, and shall be deemed to occur on the date such
notice is delivered to the Participant.

(b)    Change in Control.    For purposes of this Section 9, a Change
in Control shall be deemed to have occurred upon:

(i) the occurrence of an acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
(a Person) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of a percentage of the combined
voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the Company
Voting Securities) (but excluding (1) any acquisition directly from
the Company (other than an acquisition by virtue of the exercise of a
conversion privilege of a security that was not acquired directly from
the Company), (2) any acquisition by the Company or an Affiliate and (3)
any acquisition by an employee benefit plan (or related trust) sponsored
or maintained by the Company or any Affiliate) (an Acquisition) that is
thirty percent (30%) or more of the Company Voting Securities;

(ii) at any time during a period of two (2) consecutive years or less,
individuals who at the beginning of such period constitute the Board
(and any new directors whose election by the Board or nomination for
election by the Companys stockholders was approved by a vote of at
least two-thirds (2/3) of the directors then still in office who either
were directors at the beginning of the period or whose election or
nomination for election was so approved) cease for any reason (except
for death, Disability or voluntary retirement) to constitute a majority
thereof;

(iii) an Acquisition that is fifty percent (50%) or more of the Company
Voting Securities;

(iv) the consummation of a merger, consolidation, reorganization or
similar corporate transaction, whether or not the Company is the
surviving company in such transaction, other than a merger, consolidation,
or reorganization that would result in the Persons who are beneficial
owners of the Company Voting Securities outstanding immediately prior
thereto continuing to beneficially own, directly or indirectly, in
substantially the same proportions, at least fifty percent (50%) of the
combined voting power of the Company Voting Securities (or the voting
securities of the surviving entity) outstanding immediately after such
merger, consolidation or reorganization;

(v) the sale or other disposition of all or substantially all of the
assets of the Company;

(vi) the approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company; or

(vii) the occurrence of any transaction or event, or series of transactions
or events, designated by the Board in a duly adopted resolution as
representing a change in the effective control of the business and
affairs of the Company, effective as of the date specified in any
such resolution.

(c)    Constructive Termination.    For purposes of this Section 9, a
Constructive Termination shall mean a termination of employment by a
Participant within sixty (60) days following the occurrence of any one
or more of the following events without the Participants written consent
(i) any reduction in position, title (for Vice Presidents or above),
overall responsibilities, level of authority, level of reporting (for
Vice Presidents or above), base compensation, annual incentive
compensation opportunity, aggregate employee benefits or (ii) a
request that the Participants location of employment be relocated
by more than fifty (50) miles. Subject to the first sentence of
Section 9.1 hereof, in the event that a Participant is a party
to an employment agreement with the Company or any Affiliate (or
a successor entity) that defines a termination on account of
Constructive Termination,Good Reason or Breach of Agreement
(or a term having a similar meaning), such definition shall apply
as the definition of Constructive Termination for purposes hereof
in lieu of the foregoing, but only to the extent that such definition
provides the Participant with greater rights. A Constructive
Termination shall be communicated by written notice to the Committee,
and shall be deemed to occur on the date such notice is delivered to
the Committee, unless the circumstances giving rise to the
Constructive Termination are cured within five (5) days of
such notice.

(d)    Triggering Event.    For purposes of this Section 9, a
Triggering Event shall mean (i) the termination of Service of a
Participant by the Company or an Affiliate (or any successor thereof)
other than on account of death, Disability or Cause, (ii) the occurrence
of a Constructive Termination or (iii) any failure by the Company
(or a successor entity) to assume, replace, convert or otherwise
 continue any Award in connection with the Change in Control (or another
corporate transaction or other change effecting the Common Stock) on
the same terms and conditions as applied immediately prior to such
transaction, except for equitable adjustments to reflect changes in
the Common Stock pursuant to Section 4.2 hereof.

9.3    Excise Tax Limit.    In the event that the vesting of Awards
together with all other payments and the value of any benefit received
or to be received by a Participant would result in all or a portion of
such payment being subject to the excise tax under Section 4999 of the
Code, then the Participants payment shall be either (i) the full payment
or (ii) such lesser amount that would result in no portion of the payment
being subject to excise tax under Section 4999 of the Code (the Excise
Tax), whichever of the foregoing amounts, taking into account the
applicable Federal, state, and local employment taxes, income taxes,
and the Excise Tax, results in the receipt by the Participant, on an
after-tax basis, of the greatest amount of the payment notwithstanding
that all or some portion of the payment may be taxable under Section
4999 of the Code. All determinations required to be made under this
Section 9 shall be made by Pollard Kelley or any other accounting
firm which is the Companys outside auditor immediately prior to the
event triggering the payments that are subject to the Excise Tax
(the Accounting Firm). The Company shall cause the Accounting Firm
to provide detailed supporting calculations of its determinations to
the Company and the Participant. All fees and expenses of the Accounting
Firm shall be borne solely by the Company. The Accounting Firms
determinations must be made with substantial authority (within the
meaning of Section 6662 of the Code). For the purposes of all
calculations under Section 280G of the Code and the application of
this Section 9.3, all determinations as to present value shall be made
using 120 percent of the applicable Federal rate (determined under
Section 1274(d) of the Code) compounded semiannually, as in effect
on December 30, 2004.

10.    Forfeiture Events.

10.1    General.    The Committee may specify in an Award Agreement at
the time of the Award that the Participants rights, payments and benefits
with respect to an Award shall be subject to reduction, cancellation,
forfeiture or recoupment upon the occurrence of certain specified
events, in addition to any otherwise applicable vesting or performance
conditions of an Award. Such events shall include, but shall not be
limited to, termination of Service for cause, violation of material
Company policies, breach of non-competition, confidentiality or other
restrictive covenants that may apply to the Participant, or other
conduct by the Participant that is detrimental to the business or
reputation of the Company.

10.2    Termination for Cause.    Unless otherwise provided by the
Committee and set forth in an Award Agreement, if a Participants
employment with the Company or any Affiliate shall be terminated for
cause, the Company may, in its sole discretion, immediately terminate
such Participants right to any further payments, vesting or exercisability
 with respect to any Award in its entirety. In the event a Participant
is party to an employment (or similar) agreement with the Company or
any Affiliate that defines the term cause, such definition shall
apply for purposes of the Plan. The Company shall have the power to
determine whether the Participant has been terminated for cause and
the date upon which such termination for cause occurs. Any such
determination shall be final, conclusive and binding upon the Participant.
In addition, if the Company shall reasonably determine that a
Participant has committed or may have committed any act which could
constitute the basis for a termination of such Participants employment
for cause, the Company may suspend the Participants rights to
exercise any option, receive any payment or vest in any right with
respect to any Award pending a determination by the Company of whether
an act has been committed which could constitute the basis for a
termination for cause as provided in this Section 10.2.

11.    General Provisions.

11.1    Award Agreement.    To the extent deemed necessary by the
Committee, an Award under the Plan shall be evidenced by an Award
Agreement in a written or electronic form approved by the Committee
setting forth the number of shares of Common Stock or units subject
to the Award, the exercise price, base price, or purchase price of
the Award, the time or times at which an Award will become vested,
exercisable or payable and the term of the Award. The Award Agreement
may also set forth the effect on an Award of termination of Service under
certain circumstances. The Award Agreement shall be subject to and
incorporate, by reference or otherwise, all of the applicable terms
and conditions of the Plan, and may also set forth other terms and
conditions applicable to the Award as determined by the Committee
consistent with the limitations of the Plan. Award Agreements evidencing
Incentive Stock Options shall contain such terms and conditions as may be
necessary to meet the applicable provisions of Section 422 of the Code.
The grant of an Award under the Plan shall not confer any rights upon
the Participant holding such Award other than such terms, and subject
to such conditions, as are specified in the Plan as being applicable
to such type of Award (or to all Awards) or as are expressly set
forth in the Award Agreement. The Committee need not require the
execution of an Award Agreement by a Participant, in which case,
acceptance of the Award by the Participant shall constitute agreement
by the Participant to the terms, conditions, restrictions and limitations
set forth in the Plan and the Award Agreement as well as the administrative
guidelines of the Company in effect from time to time.

11.2    No Assignment or Transfer; Beneficiaries.    Except as provided
in Section 6.7 hereof, Awards under the Plan shall not be assignable or
transferable by the Participant, except by will or by the laws of descent
and distribution, and shall not be subject in any manner to assignment,
alienation, pledge, encumbrance or charge. Notwithstanding the foregoing,
the Committee may provide in the terms of an Award Agreement that the
Participant shall have the right to designate a beneficiary or beneficiaries
who shall be entitled to any rights, payments or other benefits specified
under an Award following the Participants death. During the lifetime of
a Participant, an Award shall be exercised only by such Participant or
such Participants guardian or legal representative. In the event of a
Participants death, an Award may to the extent permitted by the Award
Agreement be exercised by the Participants beneficiary as designated
by the Participant in the manner prescribed by the Committee or, in the
absence of an authorized beneficiary designation, by the legatee of such
Award under the Participants will or by the Participants estate in
accordance with the Participants will or the laws of descent and
distribution, in each case in the same manner and to the same extent
that such Award was exercisable by the Participant on the date of the
Participants death.

11.3    Deferrals of Payment.    The Committee may in its discretion permit
a Participant to defer the receipt of payment of cash or delivery of shares
of Common Stock that would otherwise be due to the Participant by virtue
of the exercise of a right or the satisfaction of vesting or other
conditions with respect to an Award. If any such deferral is to be permitted
by the Committee, the Committee shall establish rules and procedures
relating to such deferral in a manner intended to comply with the
requirements of Section 409A of the Code, including, without limitation,
the time when an election to defer may be made, the time period of the
deferral and the events that would result in payment of the deferred amount,
the interest or other earnings attributable to the deferral and the
 method of funding, if any, attributable to the deferred amount.

11.4    Rights as Stockholder.    A Participant shall have no rights as
a holder of shares of Common Stock with respect to any unissued
securities covered by an Award until the date the Participant becomes
 the holder of record of such securities. Except as provided in Section
4.2 hereof, no adjustment or other provision shall be made for dividends
or other stockholder rights, except to the extent that the Award
Agreement provides for dividend payments or dividend equivalent rights.

11.5    Employment or Service.    Nothing in the Plan, in the grant of
any Award or in any Award Agreement shall confer upon any Eligible Person
any right to continue in the Service of the Company or any of its
Affiliates, or interfere in any way with the right of the Company or
any of its Affiliates to terminate the Participants employment or
other service relationship for any reason at any time.

11.6    Securities Laws.    No shares of Common Stock will be issued or
transferred pursuant to an Award unless and until all then applicable
requirements imposed by Federal and state securities and other laws,
rules and regulations and by any regulatory agencies having
jurisdiction, and by any exchanges upon which the shares of Common
Stock may be listed, have been fully met. As a condition precedent
to the issuance of shares pursuant to the grant or exercise of an Award,
the Company may require the Participant to take any reasonable action to
meet such requirements. The Committee may impose such conditions on any
shares of Common Stock issuable under the Plan as it may deem advisable,
including, without limitation, restrictions under the Securities Act of
1933, as amended, under the requirements of any exchange upon which such
shares of the same class are then listed, and under any blue sky or other
securities laws applicable to such shares. The Committee may also require
the Participant to represent and warrant at the time of issuance or transfer
that the shares of Common Stock are being acquired only for investment
purposes and without any current intention to sell or distribute such
shares.

11.7    Tax Withholding.    The Participant shall be responsible for
payment of any taxes or similar charges required by law to be withheld
from an Award or an amount paid in satisfaction of an Award, which
shall be paid by the Participant on or prior to the payment or other
event that results in taxable income in respect of an Award. The Award
Agreement may specify the manner in which the withholding obligation
shall be satisfied with respect to the particular type of Award.

11.8    Unfunded Plan.    The adoption of the Plan and any reservation of
shares of Common Stock or cash amounts by the Company to discharge its
obligations hereunder shall not be deemed to create a trust or other
funded arrangement. Except upon the issuance of Common Stock pursuant
to an Award, any rights of a Participant under the Plan shall be those
of a general unsecured creditor of the Company, and neither a Participant
nor the Participants permitted transferees or estate shall have any other
interest in any assets of the Company by virtue of the Plan. Notwithstanding
the foregoing, the Company shall have the right to implement or set aside
funds in a grantor trust, subject to the claims of the Companys creditors
or otherwise, to discharge its obligations under the Plan.

11.9    Other Compensation and Benefit Plans.    The adoption of the Plan
shall not affect any other share incentive or other compensation plans
in effect for the Company or any Affiliate, nor shall the Plan preclude
the Company from establishing any other forms of share incentive or
other compensation or benefit program for employees of the Company or
any Affiliate. The amount of any compensation deemed to be received by
a Participant pursuant to an Award shall not constitute includable
compensation for purposes of determining the amount of benefits to
which a Participant is entitled under any other compensation or benefit
plan or program of the Company or an Affiliate, including, without
limitation, under any pension or severance benefits plan, except to
the extent specifically provided by the terms of any such plan.

11.10    Plan Binding on Transferees.    The Plan shall be binding upon
the Company, its transferees and assigns, and the Participant, the
Participants executor, administrator and permitted transferees and
beneficiaries.

11.11    Severability.    If any provision of the Plan or any Award
Agreement shall be determined to be illegal or unenforceable by any
court of law in any jurisdiction, the remaining provisions hereof and
hereof shall be severable and enforceable in accordance with their
terms, and all provisions shall remain enforceable in any other
jurisdiction.

11.12    Foreign Jurisdictions.    The Committee may adopt, amend
and terminate such arrangements and grant such Awards, not inconsistent
with the intent of the Plan, as it may deem necessary or desirable to
comply with any tax, securities, regulatory or other laws of other
jurisdictions with respect to Awards that may be subject to such laws.
The terms and conditions of such Awards may vary from the terms and
conditions that would otherwise be required by the Plan solely to the
extent the Committee deems necessary for such purpose. Moreover, the
Board may approve such supplements to or amendments, restatements or
alternative versions of the Plan, not inconsistent with the intent of
the Plan, as it may consider necessary or appropriate for such purposes,
without thereby affecting the terms of the Plan as in effect for any
other purpose.

11.13    Substitute Awards in Corporate Transactions.    Nothing
contained in the Plan shall be construed to limit the right of the
Committee to grant Awards under the Plan in connection with the
acquisition, whether by purchase, merger, consolidation or other
corporate transaction, of the business or assets of any corporation
or other entity. Without limiting the foregoing, the Committee may
grant Awards under the Plan to an employee or director of another
corporation who becomes an Eligible Person by reason of any such
corporate transaction in substitution for awards previously granted
by such corporation or entity to such person. The terms and conditions
of the substitute Awards may vary from the terms and conditions that
would otherwise be required by the Plan solely to the extent the
Committee deems necessary for such purpose.

11.14 Governing Law. The Plan and all rights hereunder shall be subject
to and interpreted in accordance with the laws of the State of Nevada,
without reference to the principles of conflicts of laws, and to
applicable Federal securities laws.

11.15 Performance Based Awards.    For purposes of Stock Awards and
Restricted Stock Awards granted under the Plan that are intended to
qualify as performance-based compensation under Section 162(m) of
the Code, such Awards shall be granted to the extent necessary to
satisfy the requirements of Section 162(m) of the Code.

12.    Effective Date; Amendment and Termination.

12.1    Effective Date.    The Plan shall become effective following
its adoption by the Board. The term of the Plan shall be ten (10) years
from the date of adoption by the Board, subject to Section 12.3 hereof.

12.2    Amendment.     The Board may at any time and from time to time
and in any respect, amend or modify the Plan. The Board may seek the
approval of any amendment or modification by the Companys stockholders
to the extent it deems necessary or advisable in its discretion for
purposes of compliance with Section 162(m) or Section 422 of the Code,
or exchange or securities market or for any other purpose. No amendment
or modification of the Plan shall adversely affect any Award
theretofore granted without the consent of the Participant or the
permitted transferee of the Award.

12.3    Termination.    The Plan shall terminate on the tenth anniversary
of the date of its adoption by the Board. The Board may, in its
discretion and at any earlier date, terminate the Plan.
Notwithstanding the foregoing, no termination of the Plan shall
adversely affect any Award theretofore granted without the consent
of the Participant or the permitted transferee of the Award.Promissory Note

    
      

         

        
          

          

        

        Exhibit
          10.1

         

         

            $
          14,980                                                                    March
          1,
          2006

         

         

        

         

         

        PROMISSORY
          NOTE

         

         

        ZYNEX
          MEDICAL HOLDINGS, INC.

         

        For
          value
          received, Zynex Medical Holdings, Inc. (“Zynex”) promises to pay to the order of
          Thomas Sandgaard (hereinafter "Holder"), in legal tender, the sum of $14,980
          (which includes principal of $14,476 plus accrued interest of $504 at 8.25%
          per
          annum from October 1, 2005 through February 28, 2006) with interest on
          the
          outstanding balance at the annual rate of 8.25%. This Note commences March
          1,
          2006 (hereinafter "Commencement Date"), and all obligations set forth herein
          are
          measured from this date. This Note will be repaid in equal monthly payments
          of
          principal and interest of $1,079.03, with the first payment due March 31,
          2006,
          and each additional payment due on the last day of the next following month
          until paid in full; all principal and interest shall be fully repaid no
          later
          than 15 months after the Commencement Date. The note may be prepaid without
          penalty at Zynex’s option at any time. 

        

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

        

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

        

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

         

        

        
          	 Zynex
                  Medical Holdings, Inc.	 	 	 
	 	 	 	 
	/s/ Peter
                  J. Leveton	 	 	 
	
                  

                	 	 	
                
	
                  By:Peter
                    J. Leveton

                  Chief
                    Financial Officer

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