| (a) | “Affiliate”      means any corporation or any other entity (including, but not limited to,      partnerships and joint ventures) controlling, controlled by, or under      common control with theCorporation. |
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| (b) | “Award”      means any Option, Stock Appreciation Right, Restricted Stock Unit,      Restricted Stock or Performance Grant awarded under the      2008 Plan. |
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| (c)  | “Board”      means the Board of Directors of theCorporation. |
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| (d) | “Code”      means the Internal Revenue Code of 1986, as amended from time to time, and      the regulations promulgatedthereunder. |
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| (e) | “Committee”      means the Compensation Committee of the Board, or such other committee of      not less than two members of the Board appointed by the Board to      administer the 2008 Plan, provided that the members of such Committee      must be Non-Employee Directors as defined in Rule 16b-3(b) promulgated      under the Exchange Act. |
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| (f) | “Common      Stock” or “Stock” means the Common Stock, par value $0.001 per share, of      the Corporation. |
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| (g) | “Consultant”      means any person, including an advisor, engaged by the Corporation or a      Parent, Subsidiary or Affiliate to render services to such      entity. |
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| (h)  | “Corporation”      means Loreto Resources Corporation. |
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| (i) | “Designated      Beneficiary” means the beneficiary designated by a Participant, in a      manner determined by the Board, to receive amounts due or exercise rights      of the Participant in the event of the Participant’s death.  In      the absence of an effective designation by a Participant, Designated      Beneficiary shall mean the Participant’sestate. |
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| (j) | “Director”      means any member of the Board. |
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| (k)   | “Employee”      means any person, including Officers and Directors, employed by the      Corporation or any Parent, Subsidiary or Affiliate of the      Corporation.  Neither service as a Director nor payment of a      director’s fee by the Corporation will be sufficient to constitute      “employment” by the Corporation. |
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| (l)  | “Exchange      Act” means the Securities Exchange Act of 1934, as  amended. |
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| (m) | “Fair      Market Value” means, as of any date, the value of the Common Stock as the      Board may determine in good faith by reference to the closing price of      such stock on any established stock exchange or an established securities      market on the day of determination if the Common Stock is so listed on any      established stock exchange or an established securities      market.  If the Common Stock is not listed on any established      stock exchange or a national market system, the value of the Common Stock      will be determined as the Board may determine in good    faith. |
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| (n) | “Incentive      Stock Option” means an option to purchase shares of Common Stock, awarded      to a Participant under Section 6, which is intended to meet the      requirements of Section 422 of the Code or any successor      provision. |
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| (o) | “Nonqualified      Stock Option” means an option to purchase shares of Common Stock, awarded      to a Participant under Section 6, which is not intended to be an Incentive      Stock Option. |
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| (p) | “Officer”      means a person who is an officer of the Corporation within the meaning of      Section 16 of the Exchange Act and the rules and regulations      promulgated thereunder. |
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| (q)  | “Option”      means an Incentive Stock Option or a Nonqualified Stock      Option. |
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| (r) | “Parent”      means a “parent corporation,” whether now or hereafter existing, as      defined in Section 424(e) of theCode. |
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| (s) | “Participant”      means a person selected by the Board to receive an Award under the      2008 Plan. |
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| (t)  | “Performance      Grant” means an award to a Participant under    Section 9. |
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| (u) | “Restricted      Period” means the period of time selected by the Board during which an      award of Restricted Stock may be forfeited to the    Corporation. |
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| (v) | “Restricted      Stock” means shares of Common Stock subject to forfeiture, awarded to a      Participant under Section 8. |
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| (w) | “Restricted      Stock Unit” or “RSU” means units granted to a Participant that are settled      in Stock and awarded to a Participant under Section 10.  An RSU      is a bookkeeping entry representing the equivalent of one share of      Stock. |
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| (x) | “Service      Provider” means an Employee, Director, or  Consultant. |
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| (y) | “Stock      Appreciation Right” or “SAR” means a right to receive any excess in value      of shares of Common Stock over the reference price, awarded to a      Participant under Section 7. |
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| (z) | “Subsidiary”      means a “subsidiary corporation,” whether now or hereafter existing, as      defined in Section 424(f) of theCode. |
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| (a) | Subject      to adjustment under subsection (b), Awards may be made under the      2008 Plan of up to a maximum of 2,000,000 shares of Common      Stock.  If any Award in respect of shares of Common Stock      granted under the 2008 Plan expires, terminates, is terminated      unexercised or is forfeited for any reason or settled in a manner that      results in fewer shares outstanding than were initially awarded, including      without limitation the surrender of shares in payment for the Award or any      tax obligation thereon, the shares subject to such Award or so      surrendered, as the case may be, to the extent of such expiration,      termination, forfeiture or decrease, shall again be available for award      under the 2008 Plan, subject, however, in the case of Incentive Stock      Options, to any limitation required under the Code.  Common      Stock issued through the assumption or substitution of outstanding grants      from an acquired corporation shall not reduce the shares available for      Awards under the 2008 Plan.  Shares issued under the      2008 Plan may consist in whole or in part of authorized but unissued      shares or treasury shares. |
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| (b) | In      the event that the Board determines that any stock dividend, extraordinary      cash dividend, creation of a class of equity securities, recapitalization,      stock split, reverse stock split, reclassification, reorganization,      merger, consolidation, split-up, spin-off, liquidation, combination,      exchange of shares, warrants or rights offering to purchase Common Stock      at a price substantially below fair market value, or other similar      transaction affects the Common Stock such that an adjustment is required      in order to preserve the benefits or potential benefits intended to be      made available under the 2008 Plan, then the Board, subject, in the      case of Incentive Stock Options, to any limitation required under Section      422 of the Code, and with respect to other Awards, any applicable      requirements of Section 409A of the Code, shall equitably adjust any or      all of (i) the number and kind of shares in respect of which Awards      may be made under the 2008 Plan, (ii) the number and kind of      shares subject to outstanding Awards, and (iii) the award, exercise      or conversion price with respect to any of the foregoing, and if      considered appropriate, the Board may make provision for a cash payment      with respect to an outstanding Award, provided that the number of shares      subject to any Award shall always be a whole  number. |
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| (a) | Subject      to the provisions of the 2008 Plan, the Board may award Incentive      Stock Options and Nonqualified Stock Options and determine the number of      shares to be covered by each Option, the option price therefore and the      conditions and limitations applicable to the exercise of the      Option.  The terms and conditions of Incentive Stock Options      shall be subject to and comply with Section 422 of the Code, or any      successor provision, and any regulations  thereunder. |
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| (b) | The      Board shall establish the option price at the time each Option is awarded,      which price shall not be less than 100% of the Fair Market Value of the      Common Stock on the date of award with respect to such    Option. |
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| (c) | Each      Option shall be exercisable at such times and subject to such terms and      conditions as the Board may specify in the applicable Award or      thereafter.  The Board may impose such conditions with respect      to the exercise of Options, including conditions relating to applicable      federal or state securities laws, as it considers necessary or      advisable. |
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| (d) | No      shares shall be delivered pursuant to any exercise of an Option until      payment in full of the option price therefore is received by the      Corporation.  Such payment may be made in whole or in part in      cash or, to the extent permitted by the Board at or after the award of the      Option, by delivery of shares of Common Stock owned by the option holder,      valued at their Fair Market Value on the date of delivery, by the      reduction of the shares of Common Stock that the optionholder would be      entitled to receive upon exercise of the Option, such shares to be valued      at their Fair Market Value on the date of exercise, less their option      price (a so-called “cashless exercise”), or such other lawful      consideration as the Board maydetermine. |
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| (e) | In      the case of Incentive Stock Options the following additional conditions      shall apply to the extent required under Section 422 of the Code for the      options to qualify as Incentive StockOptions: |
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|   | (i) | Such      options shall be granted only to employees of the Corporation, and shall      not be granted to any person who owns stock that possesses more than ten      percent of the total combined voting power of all classes of stock of the      Corporation or of its parent or subsidiary corporation (as those terms are      defined in Section 422(b) of the Code), unless, at the time of such grant,      the exercise price of such option is at least 110% of the fair market      value of the stock that is subject to such option and the option shall not      be exercisable more than five years after the date of    grant; |
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|  | (ii)  | Such      options shall, by their terms, be transferable by the optionholder only by      the laws of descent and distribution, and shall be exercisable only by      such optionholder during hislifetime. |
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|  | (iii)  | Such      options shall not be granted more than ten years from the effective date      of the 2008 Plan or any subsequent amendment to the 2008 Plan      approved by the stockholders of the Corporation which extends this      Incentive Stock Option expiration date, and shall not be exercisable more      than ten years from the date ofgrant. |
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|   | (iv) | Notwithstanding      other provisions hereof, the aggregate Fair Market Value (determined at      the time the Incentive Stock Option is granted) of the Common Stock with      respect to which Incentive Stock Options are exercisable for the first      time by the employee during any calendar year (under all such plans of the      employee’s employer corporation and its parent and subsidiary      corporations) shall not exceed$100,000. |
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| (a) | Subject      to the provisions of the 2008 Plan, the Board may award shares of      Restricted Stock and determine the duration of the Restricted Period      during which, and the conditions under which, the shares may be forfeited      to the Corporation and the other terms and conditions of such      Awards.  Shares of Restricted Stock may be issued for no cash      consideration or such minimum consideration as may be required by      applicable law. |
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| (b) | Shares      of Restricted Stock may not be sold, assigned, transferred, pledged or      otherwise encumbered, except as permitted by the Board, during the      Restricted Period.  Shares of Restricted Stock shall be      evidenced in such manner as the Board may determine.  Any      certificates issued in respect of shares of Restricted Stock shall be      registered in the name of the Participant and unless otherwise determined      by the Board deposited by the Participant, together with a stock power      endorsed in blank, with the Corporation.  At the expiration of      the Restricted Period, the Corporation shall deliver such certificates to      the Participant or, if the Participant has died, to the Participant’s      Designated Beneficiary. |
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| (c) | Holders      of Restricted Stock shall have the right to receive any dividends declared      or paid with respect to such Restricted Stock, provided, however that the      Board may provide that any dividends paid on Restricted Stock must be      reinvested in shares of Stock, which may or may not be subject to the same      terms and conditions of such RestrictedStock. |
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| (a) | Documentation.  Each      Award under the 2008 Plan shall be evidenced by a written document      delivered to the Participant specifying the terms and conditions thereof      and containing such other terms and conditions not inconsistent with the      provisions of the 2008 Plan as the Board considers necessary or      advisable to achieve the purposes of the 2008 Plan or comply with      applicable tax and regulatory laws and accounting      principles.  If such written document evidences an Award of      Options, it shall specify whether such Options are intended to be      Nonqualified Stock Options or Incentive Stock Options, and in the absence      of such specification such Options shall be deemed Nonqualified Stock      Options. |
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| (b) | Board      Discretion.  Each type of Award may be made alone, in      addition to or in relation to any other type of Award.  The      terms of each type of Award need not be identical, and the Board need not      treat Participants uniformly.  Except as otherwise provided by      the 2008 Plan or a particular Award, any determination with respect      to an Award may be made by the Board at the time of award or at any time      thereafter. |
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| (c) | Settlement.  The      Board shall determine whether Awards, other than Restricted Stock Units,      are settled in whole or in part in cash, Common Stock, other securities of      the Corporation, Awards, other property or such other methods as the Board      may deem appropriate.  If shares of Common Stock are to be used      in payment pursuant to an Award and such shares were acquired upon the      exercise of a stock option (whether or not granted under the      2008 Plan), such shares must have been held by the Participant for at      least six months. |
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| (d) | Termination of      Employment.  The Board shall determine the effect on an      Award of the disability, death, retirement or other termination of      employment of a Participant and the extent to which, and the period during      which, the Participant’s legal representative, guardian or Designated      Beneficiary may receive payment of an Award or exercise rights      thereunder. |
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| (e) | Change in      Control.  In order to preserve a Participant’s rights      under an Award in the event of a change in control of the Corporation, as      defined in Treasury Regulation Section 1.409A-3(i)(5)(i), the Board      in its discretion may, at the time an Award is made or at any time      thereafter, take one or more of the following actions: (i) provide for the      acceleration of any time period relating to the exercise or realization of      the Award, (ii) provide for the purchase of the Award upon the      Participant’s request for an amount of cash or other property that could      have been received upon the exercise or realization of the Award had the      Award been currently exercisable or payable, (iii) adjust the terms of the      Award in a manner determined by the Board to reflect the change in      control, (iv) cause the Award to be assumed, or new rights      substituted therefore, by another entity, or (v) make such other provision      as the Board may consider equitable and in the best interests of the      Corporation.  Notwithstanding the foregoing, any change in      Incentive Stock Options shall comply with the rules under Section 424 of      the Code and no change may be made to any Award which would make the Award      subject to the provisions of Section 409A of the  Code. |
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| (f) | Withholding.  The      Corporation shall have the power and the right to deduct or withhold, or      require a Participant to remit to the Corporation an amount sufficient to      satisfy federal, state and local taxes (including the Participant’s FICA      obligation) required to be withheld with respect to an Award or any      dividends or other distributions payable with respect      thereto.  In the Board’s discretion, such tax obligations may be      paid in whole or in part in shares of Common Stock, including shares      retained from the Award creating the tax obligation, valued at their Fair      Market Value on the date of delivery.  The Corporation may, to      the extent permitted by law, deduct any such tax obligations from any      payment of any kind otherwise due to the  Participant. |
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| (g) | Amendment of      Award.  The Board may amend, modify or terminate any      outstanding Award, including substituting therefore another Award of the      same or a different type, changing the date of exercise or realization and      converting an Incentive Stock Option to a Nonqualified Stock Option,      provided that the Participant’s consent to such action shall be required      unless the Board determines that the action, taking into account any      related action, would not materially and adversely affect the      Participant. |
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| (h) | Transfer.  Except      as otherwise provided by the Board, Awards under the 2008 Plan are      not transferable other than as designated by the Participant by will or by      the laws of descent anddistribution. |
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| (i) | Compliance with      Section 409A of the Code.  To the extent applicable, the      2008 Plan is intended to be operated in good faith compliance with      the requirements of Section 409A of the Code and its accompanying      regulations, and any additional guidance issued under Section      409A.  To the extent that any provision of the 2008 Plan      violates Section 409A, such provision shall be deemed inoperative and the      remaining provisions of the 2008 Plan shall continue to be fully      effective. |
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| (a) | No Right to      Employment.  No person shall have any claim or right to      be granted an Award, and the grant of an Award shall not be construed as      giving a Participant the right to continued employment.  The      Corporation expressly reserves the right at any time to dismiss a      Participant free from any liability or claim under the 2008 Plan,      except as expressly provided in the applicable  Award. |
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| (b) | No Rights as      Shareholder.  Subject to the provisions of the applicable      Award, no Participant or Designated Beneficiary shall have any rights as a      shareholder with respect to any shares of Common Stock to be distributed      under the 2008 Plan until he or she becomes the holder      thereof.  A Participant to whom Common Stock is awarded shall be      considered the holder of the Stock at the time of the Award except as      otherwise provided in the applicableAward. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Effective Date and      Duration of the 2008 Plan.  The 2008 Plan was adopted by      the Board and stockholders of the Corporation and became effective on July      __, 2008.  Unless earlier terminated by the Board, the 2008 Plan      shall terminate on July__, 2017. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Amendment of      2008 Plan.  The Board may amend, suspend or      terminate the 2008 Plan or any portion thereof at any time, without      shareholder approval, provided that no amendment shall be made without      shareholder approval if such approval is necessary to comply with any      applicable requirement of the laws of the jurisdiction of incorporation of      the Corporation, any applicable tax requirement, including      Section 422 of the Code, any applicable rules or regulation of the      Securities and Exchange Commission, including Rule 16b-3 (or any      successor rule thereunder), or the rules and regulations of The Nasdaq      Stock Market, Inc. or any other exchange or stock market over which the      Corporation’s securities are listed.  No amendment shall be made      where such amendment increases the total number of shares of Common Stock      reserved for issuance of Awards or reduced the minimum exercise price for      options or exchange of options for other Awards, unless such change is      authorized by the shareholders within oneyear. |
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| (e) | Governing      Law.  The provisions of the 2008 Plan shall be      governed by and interpreted in accordance with the laws of the      jurisdiction of incorporation of the  Corporation. |
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| (f) | Indemnity.  Neither      the Board nor the Committee, nor any members of either, nor any employees      of the Corporation or any parent, subsidiary, or other affiliate, shall be      liable for any act, omission, interpretation, construction or      determination made in good faith in connection with their responsibilities      with respect to the 2008 Plan, and the Corporation hereby agrees to      indemnify the members of the Board, the members of the Committee, and the      employees of the Corporation and its parent or subsidiaries in respect of      any claim, loss, damage, or expense (including reasonable counsel fees)      arising from any such act, omission, interpretation, construction or      determination to the full extent permitted by  law. |
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----