Document:

SERIES
      A PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

     

    This
      Series A Preferred Stock and Warrant Purchase Agreement (this “Agreement”)
      is
      made as of April 18, 2008, by and between Stratos Renewables, Inc. a Nevada
      corporation (the “Company”),
      and
      _______________________ (the “Investor”).

     

    SECTION
      1

     

    Authorization,
      Sale and Issuance of Series A Preferred Stock
      and Warrant

     

    1.1 Authorization. 
      The Company will, prior to the Closing (as defined below), authorize
      (a) the sale and issuance of _______________________ shares (the
“Shares”)
      of the
      Company’s Series A Preferred Stock, $.001 par value (the “Series
      A Preferred Stock”),
      having the rights, privileges, preferences and restrictions set forth in the
      Amended and Restated Certificate of Designation, Powers, Preferences and Rights
      of Series A Preferred Stock of the Company, in substantially the form attached
      hereto as Exhibit A
      (the
“Certificate
      of Designation”);
      (b) the issuance of a warrant, in substantially the form attached hereto as
Exhibit B
      (the
“Warrant”),
      for
      the purchase of up to _______________________ shares of common stock, $.001
      par
      value (the “Common
      Stock”)
      of the
      Company (the “the
      Warrant Shares”);
      and
      (c) the reservation of shares of Common Stock for issuance upon conversion
      of
      the Warrant Shares (the “Conversion
      Shares”).

     

    1.2 Sale
      and Issuance of Shares. 
      Subject to the terms and conditions of this Agreement, the Investor agrees
      to
      purchase, and the Company agrees to sell and issue to the Investor, the Shares
      at a cash purchase price of $0.70 per share and an aggregate purchase price
      for
      all Shares equal to _______________________ (the “Total
      Base Purchase Price”).
      

     

    1.3 Funding
      Fee.
      On the
      Closing Date (as defined below), the Company shall pay the Investor an amount
      equal to two percent (2%) of the Total Base Purchase Price (i.e., ten thousand
      dollars ($10,000.00)) in
      consideration for the purchase by the Investor of the Shares (the “Funding
      Fee”).
      The
      Total Base Purchase Price less the Funding Fee shall be referred to as the
      “Total
      Purchase Price.”

     

    1.4 Issuance
      of Series A Warrant. 
      On the Closing Date, the Company shall issue to the Investor the Warrant to
      purchase up to the number of Warrant Shares. The Warrant shall be issued in
      substantially the same form as attached hereto as Exhibit B.
      

     

    SECTION
      2

     

    Closing
      Date and Delivery

     

    2.1 Closing.
      The
      purchase, sale and issuance of the Shares and the Warrant shall take place
      at a
      closing (the “Closing”)
      at the
      offices of Stratos Renewables Corporation, 9440
      Santa Monica Blvd., Suite 401,
      Beverly
      Hills, California
      90210,
      to be consummated simultaneously herewith (the “Closing
      Date”).

     

    2.2 Delivery. 
At
      the Closing, the Company will deliver to the Investor a certificate registered
      in the Investor’s name representing the Shares (the “Stock
      Certificate”)
      and
      the executed Warrant to purchase up to the number of Warrant Shares against
      payment of the Total Purchase Price less any amounts to be reimbursed by the
      Company to the Investor pursuant to Section 8.1, by wire transfer in accordance
      with the Company’s instructions. 

     

    
      
        
        

      

      
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    SECTION
      3

     

    Representations
      and Warranties of the Company

     

    The
      Company represents and warrants to the Investor that:

     

    3.1 Due
      Incorporation, Qualification, etc.
      The
      Company (a) is a corporation duly organized, validly existing and in good
      standing under the laws of its state of incorporation; (b) has the power and
      authority to own, lease and operate its properties and carry on its business
      as
      now conducted; and (c) is duly qualified, licensed to do business and in good
      standing as a foreign corporation in each jurisdiction where the failure to
      be
      so qualified or licensed could reasonably be expected to have a Material Adverse
      Effect. For the purposes of this Agreement, “Material
      Adverse Effect”
shall
      mean a material adverse effect on (i) the business, assets, operations,
      prospects or financial or other condition of the Company; (ii) the ability
      of the Company to pay or perform its obligations under this Agreement in
      accordance with the terms of this Agreement and the other Transaction Documents
      (as defined below) and to avoid an event of default, or an event which, with
      the
      giving of notice or the passage of time or both, would constitute an event
      of
      default, under any Transaction Document; or (iii) the rights and remedies
      of the Investor under this Agreement, the other Transaction Documents or any
      related document, instrument or agreement.

     

    3.2 Authority.
      The
      execution, delivery and performance by the Company of this Agreement, the
      Warrant and the Stock Certificate, and all such other documents required by
      the
      terms of this Agreement to be executed by the Company (collectively, the
“Transaction
      Documents”)
      and
      the consummation of the transactions contemplated thereby (a) are within
      the power of the Company and (b) have been duly authorized by all necessary
      actions on the part of the Company.

     

    3.3 Enforceability.
      Each
      Transaction Document has been, or will be, duly executed and delivered by the
      Company and constitutes, or will constitute, a legal, valid and binding
      obligation of the Company, enforceable against the Company in accordance with
      its terms, except as limited by bankruptcy, insolvency or other laws of general
      application relating to or affecting the enforcement of creditors’ rights
      generally and general principles of equity.

     

    3.4 Non-Contravention.
      The
      execution and delivery by the Company of the Transaction Documents and the
      performance and consummation of the transactions contemplated thereby do not
      and
      will not (a) violate the Company’s Articles of Incorporation or Bylaws, as
      amended, as the case may be (“Charter
      Documents”),
      or
      any material judgment, order, writ, decree, statute, rule or regulation
      applicable to the Company; (b) violate any provision of, or result in the
      breach or the acceleration of, or entitle any other Person to accelerate
      (whether after the giving of notice or lapse of time or both), any material
      mortgage, indenture, agreement, instrument or contract to which the Company
      is a
      party or by which it is bound; or (c) result in the creation or imposition
      of any lien upon any property, asset or revenue of the Company or the
      suspension, revocation, impairment, forfeiture, or nonrenewal of any material
      permit, license, authorization or approval applicable to the Company, its
      business or operations, or any of its assets or properties. For the purposes
      of
      this Agreement, “Person”
shall
      mean and include an individual, a partnership, a corporation (including a
      business trust), a joint stock company, a limited liability company, an
      unincorporated association, a joint venture or other entity or a governmental
      authority. 

     

    
      
        
        

      

      
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    3.5 Approvals.
      The
      Company is not required to obtain any consent, authorization or order of, or
      make any filing or registration with, any court, governmental agency or any
      regulatory or self-regulatory agency or any other Person in order for it to
      execute, deliver or perform any of its obligations under or contemplated by
      this
      Agreement, in each case in accordance with the terms hereof or
      thereof.

     

    3.6 No
      Violation or Default.
      The
      Company is not in violation of or in default with respect to (a) its
      Charter Documents or any material judgment, order, writ, decree, statute, rule
      or regulation applicable to it; or (ii) any material mortgage, indenture,
      agreement, instrument or contract to which the Company is a party or by which
      it
      is bound (nor is there any waiver in effect which, if not in effect, would
      result in such a violation or default), where, in each case, such violation
      or
      default, individually, or together with all such violations or defaults, could
      reasonably be expected to have a Material Adverse Effect.

     

    3.7 Subsidiaries.
      Other
      than Stratos del Peru S..A.C., the Company does not presently own or control,
      directly or indirectly, any interest in any other Person.

     

    3.8 Litigation.
      No
      actions (including, without limitation, derivative actions), suits, proceedings
      or investigations are pending or, to the knowledge of the Company, threatened
      against the Company at law or in equity in any court or before any other
      governmental authority that if adversely determined (a) would (alone or in
      the aggregate) have a Material Adverse Effect or (b) seeks to enjoin,
      either directly or indirectly, the execution, delivery or performance by the
      Company of the Transaction Documents or the transactions contemplated
      thereby.

     

    3.9 Taxes.
      Within
      the times and in the manner prescribed by law, the Company has filed all
      federal, state and local tax returns required by law and has paid all taxes,
      assessments and penalties due and payable.
      

     

    3.10 OTCBB
      Compliance.
      The
      Company is in compliance with all requirements for, and its Common Stock is
      quoted on the Electronic Over-the-Counter Bulletin Board system.

     

    3.11 SEC
      Reports.
      The
      Company has filed all reports, schedules, forms, statements and other documents
      required to be filed by it with the SEC (the “SEC
      Documents”)
      pursuant to the reporting requirements of the Securities Exchange Act of 1934,
      as amended (the “Exchange
      Act”).
      As of
      their respective dates, the financial statements of the Company included in
      the
      SEC Documents complied in all material respects with applicable accounting
      requirements and the published rules and regulations of the Securities and
      Exchange Commission (“SEC”)
      with
      respect thereto. Such financial statements have been prepared in accordance
      with
      generally accepted accounting principles, consistently applied, during the
      periods involved (except (a) as may be otherwise indicated in such financial
      statements or the notes thereto, or (b) in the case of unaudited interim
      statements, to the extent they may exclude footnotes or may be condensed or
      summary statements) and fairly present in all material respects the financial
      position of the Company as of the dates thereof and the results of its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments).

     

    
      
        
        

      

      
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    3.12 Capitalization.
      The
      authorized capital stock of the Company currently consists of 250,000,000 shares
      of Common Stock and 50,000,000 shares of Preferred Stock, $.001 par value (the
      “Preferred
      Stock”),
      of
      which 59,972,936 shares of Common Stock and 7,142,857 shares of Preferred Stock
      are issued and outstanding. Except as provided for in this Agreement, there
      are
      no outstanding shares of Common Stock, Preferred Stock, options, rights,
      warrants, debentures, instruments, convertible securities or other agreements
      or
      commitments obligating the Company to issue any additional shares of its capital
      stock of any class. All outstanding shares of capital stock of the Company
      have
      been duly authorized, validly issued, and are fully paid and
      nonassessable.

     

    3.13 Issuance
      of Shares.
      The
      Shares of Series A Preferred Stock when issued in accordance with the terms
      of
      this Agreement, the Conversion Shares when issued upon such conversion and
      the
      Warrant Shares when issued pursuant to the exercise of the Warrant (a) will
      be
      duly and validly issued, fully paid and nonassessable, (b) will be free of
      any
      liens or encumbrances and (c) will not trigger any anti-dilution provisions
      or
      similar rights of any kind. 

     

    3.14 General
      Solicitation.
      Neither
      the Company, nor any of its affiliates, nor any Person acting on its or their
      behalf, has engaged in any form of general solicitation or general advertising
      (within the meaning of Regulation D promulgated under the Securities Act of
      1933, as amended (the “Securities
      Act”))
      in
      connection with the offer or sale of the Shares or Warrant.

     

    3.15 Accuracy
      of Information Furnished.
      None of
      the Transaction Documents and none of the other certificates, statements or
      information furnished to the Investor by or on behalf of the Company in
      connection with the Transaction Documents or the transactions contemplated
      thereby contains or will contain any untrue statement of a material fact or
      omits or will omit to state a material fact necessary to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading.

     

    3.16 Related
      Party Transactions.
      Except
      as set forth on Schedule 3.16, no affiliate, officer, director, or any Related
      Party is a party to any agreement with the Company. No employee of the Company
      or any Related Party is indebted in any amount to the Company and, except for
      accrued payroll obligations, the Company is not indebted to any of its employees
      or any Related Party. For purposes of this Agreement, “Related
      Party”
shall
      mean with respect to any specified Person (i) each Person who, together with
      its
      affiliates, owns of record or beneficially at least five percent of the
      outstanding capital stock of the specified Person as of the date of this
      Agreement; (ii) each individual who is, or who has at any time been, an officer
      or director of the specified Person; (iii) each affiliate of the Persons
      referred to in clauses (i) and (ii) above; (iv) any trust or other entity (other
      than the specified Person) in which any one of the Persons referred to in
      clauses (i), (ii) and (iii) above holds (or in which more than one of such
      Persons collectively hold), beneficially or otherwise, a voting, proprietary
      or
      equity interest; and (v) any trust or other entity (other than the specified
      Person) with which any of such Persons is affiliated. 

     

    3.17 Undisclosed
      Liabilities.
      The
      Company has not undertaken or incurred any liability or obligation, direct
      or
      contingent, except for liabilities or obligations disclosed in the SEC
      Documents.

     

    
      
        
        

      

      
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    3.18 Conversion
      Price Adjustments. No
      adjustment has been made to the Conversion Price (as set forth in the
      Certificate of Designation, Powers, Preferences and Rights of Series A Preferred
      Stock of the Company) of any outstanding shares of Series A Preferred
      Stock.

     

    SECTION
      4

     

    Representations
      and Warranties of the Investor

     

    The
      Investor hereby
      represents and warrants to the Company as follows:

     

    4.1 Binding
      Obligation.
      The
      Investor has full legal capacity, power and authority to execute and deliver
      this Agreement and to perform its obligations hereunder. This Agreement is
      a
      valid and binding obligation of the Investor, enforceable in accordance with
      its
      terms, except as limited by bankruptcy, insolvency or other laws of general
      application relating to or affecting the enforcement of creditors’ rights
      generally and general principles of equity.

     

    4.2 Securities
      Law Compliance.
      The
      Investor has been advised that the Shares and the Conversion Shares have not
      been registered under the Securities Act, or any state securities laws and,
      therefore, cannot be resold unless they are registered under the Securities
      Act
      and applicable state securities laws or unless an exemption from such
      registration requirements is available. The Investor has not been formed solely
      for the purpose of making this investment and is purchasing the Shares and
      the
      Warrant Shares for its own account for investment, not as a nominee or agent,
      and not with a view to, or for resale in connection with, the distribution
      thereof. The Investor has such knowledge and experience in financial and
      business matters that the Investor is capable of evaluating the merits and
      risks
      of such investment, is able to incur a complete loss of such investment and
      is
      able to bear the economic risk of such investment for an indefinite period
      of
      time. The Investor is an accredited investor as such term is defined in
      Rule 501 of Regulation D under the Securities Act.

     

    4.3 Access
      to Information.
      The
      Investor acknowledges that the Company has given the Investor access to the
      corporate records and accounts of the Company and to all information in its
      possession relating to the Company, has made its officers and representatives
      available for interview by the Investor, and has furnished the Investor with
      all
      documents and other information required for the Investor to make an informed
      decision with respect to the purchase of the Shares and the Warrant
      Shares.

     

    
      
        
        

      

      
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    SECTION
      5

     

    Registration
      Rights 

     

    5.1 Demand
      Registration.
      At any
      time and from time to time prior to the five (5) year anniversary of the Closing
      Date (the “Exercise
      Period”),
      the
      Investor shall have the right, exercisable by making a written request (a
“Demand
      Request”)
      to the
      Company (which request shall specify the aggregate number of shares of Common
      Stock underlying the Shares, the Conversion Shares and the Warrant Shares
      requested to be registered), to require that the Company file a registration
      statement (the “Demand
      Registration Statement”)
      with
      the SEC covering, for the Investor, the shares of Common Stock underlying the
      Shares, the Conversion Shares and the Warrant Shares specified in the Demand
      Request. The Company will file the Demand Registration Statement no later than
      thirty (30) calendar days after the Company’s receipt of the Demand Request. If
      (i) in the good faith judgment of the Board of Directors of the Company, the
      filing of the Demand Registration Statement covering the Common Stock underlying
      the Shares, the Conversion Shares and the Warrant Shares would be materially
      detrimental to the Company and the Board of Directors of the Company concludes,
      as a result, that it is in the best interests of the Company to defer the filing
      of such Demand Registration Statement at such time, and (ii) the Company shall
      furnish to the Investor a certificate signed by the President of the Company
      stating that, in the good faith judgment of the Board of Directors of the
      Company, it would be materially detrimental to the Company for such Demand
      Registration Statement to be filed in the near future and that it is, therefore,
      in the best interests of the Company to defer the filing of such Demand
      Registration Statement, then the Company shall have the right to defer such
      filing for a period of not more than one hundred eighty (180) days after receipt
      of the request of the Investor, provided that, that the Company shall not defer
      its obligation in this manner more than one (1) time under this Agreement;
      and
      provided, further, that the length of any such deferment shall be added to
      the
      Exercise Period. The Demand Registration Statement filed pursuant to the request
      of the Investor may include other securities of the Company and may include
      securities of the Company being sold for the account of the Company. If the
      SEC
      limits the number of securities that may be registered on any Demand
      Registration Statement, such number of securities shall be cutback (in the
      following order) to comply with any such limitation imposed by the SEC: (i)
      securities of the Company other than the Shares, the Conversion Shares and
      the
      Warrant Shares and (ii) the Shares, the Conversion Shares and the Warrant
      Shares.

     

    5.2 Company
      Registration.
      Upon
      the
      consummation of a PIPE financing with institutional investors for at least
      $25
      million, net of offering expenses (the “PIPE”), the Company will file a
      registration statement (the “Company
      Registration Statement”)
      covering, for the Investor, 100% of the shares of Common Stock underlying the
      Shares and the Conversion Shares no later than thirty (30) calendar days after
      the Company closes the PIPE (the “Filing
      Date”),
      except that if the SEC limits the number of securities that may be registered
      on
      the Company Registration Statement, such number of securities shall be cutback
      (in the following order) to comply with any such limitation imposed by the
      SEC:
      (i) shares of Common Stock underlying any and all warrants required to be
      registered, (ii) Common Stock and (iii) shares of Common Stock underlying the
      Shares. Any required cutbacks shall be applied to investors pro-rata in
      accordance with the number of securities sought to be included in such Company
      Registration Statement. The Company shall use its best efforts to have the
      Company Registration Statement declared effective by the SEC as soon as possible
      after the Filing Date.

     

    5.3 Piggyback
      Rights.
      If,
      at
      any time, the Company files a registration statement (the “Company
      Registration Statement”)
      for
      any securities, then the Investor shall have the option to require that the
      Company include in the Company Registration Statement any or all of the shares
      of Common Stock underlying the Shares, the Conversion Shares and the Warrant
      Shares, except that if the SEC limits the number of securities that may be
      registered on the Company Registration Statement, such number of securities
      shall be cutback (in the following order) to comply with any such limitation
      imposed by the SEC: (i) shares of Common Stock underlying any and all warrants
      required to be registered, (ii) Common Stock and (iii) shares of Common Stock
      underlying the Shares. Any required cutbacks shall be applied to investors
      pro-rata in accordance with the number of securities sought to be included
      in
      such Company Registration Statement. The Company shall use its best efforts
      to
      have the Company Registration Statement declared effective by the SEC as soon
      as
      possible after the date of filing the Company Registration
      Statement.

     

    
      
        
        

      

      
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    5.4 Penalty.
      Except
      as set forth in Section 5.1 above, if the Demand Registration Statement or
      Company Registration Statement, as applicable, is not filed within thirty (30)
      calendar days of receipt of the Company’s Demand Request or the closing of the
      PIPE, as applicable, or is not declared effective by the SEC for any reason
      within one hundred fifty (150) calendar days of the Company’s receipt of the
      Demand Request, or after the closing of the PIPE, as applicable, the Company
      will be required to pay the Investor an amount (the “Periodic
      Amount”)
      equal
      to 1.5% of the Total Base Purchase Price for each thirty (30) day period (pro
      rated for a shorter period), in each case until the Demand Registration
      Statement or Company Registration Statement, as applicable, is filed or declared
      effective, as the case may be. In no event will the aggregate Periodic Amounts
      exceed 10% of the Total Base Purchase Price. Periodic Amount payments shall
      be
      made by the Company to the Investor if effectiveness of the Demand Registration
      Statement or Company Registration Statement, as applicable, is suspended for
      more than thirty (30) consecutive days. In no event shall the Company be liable
      for liquidated damages as to any shares of Common Stock underlying the Shares
      or
      Conversion Shares which are not permitted by the SEC to be included in the
      Demand Registration Statement or Company Registration Statement, as applicable,
      solely due to comments received by the Company from the SEC. 

     

    5.5 Information
      Requirements.
      The
      Company may request the Investor to furnish the Company with such information
      with respect to the Investor and the Investor’s proposed distribution of
      securities being purchased hereunder pursuant to the Demand Registration
      Statement or Company Registration Statement, as applicable, as the Company
      may
      from time to time reasonably request in writing or as shall be required by
      law
      or by the SEC in connection therewith, and the Investor agrees to furnish the
      Company with such information.

     

    SECTION
      6

     

    Conditions
      to the Investor’s Obligation to Close

    

    The
      Investor’s obligations at the Closing are subject to the fulfillment, on or
      prior to the Closing Date, of all of the following conditions, any of which
      may
      be waived in whole or in part by the Investor: 

     

    6.1 Representations
      and Warranties.
      The
      representations and warranties made by the Company in Section 3 hereof
      shall have been true and correct when made, and shall be true and correct on
      the
      Closing Date. 

     

    6.2 Governmental
      Approvals and Filings.
      The
      Company shall have obtained all governmental approvals required in connection
      with the lawful sale and issuance of the Shares and the Warrant.

     

    6.3 Legal
      Requirements.
      At the
      Closing, the sale and issuance by the Company, and the purchase by the Investor,
      of the Shares and the Warrant shall be legally permitted by all laws and
      regulations to which the Investor or the Company are subject.

     

    
      
        
        

      

      
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    6.4 Proceedings
      and Documents.
      All
      corporate and other proceedings in connection with the transactions contemplated
      at the Closing and all documents and instruments incident to such transactions
      shall be reasonably satisfactory in substance and form to the
      Investor.

     

    6.5 Transaction
      Documents.
      The
      Company shall have duly executed and delivered to the Investor each of the
      Transaction Documents.

     

    6.6 Amended
      and Restated Articles of Incorporation.
      The
      Amended and Restated Articles of Incorporation of the Company, in the form
      attached hereto as Exhibit
      C,
      shall
      have been duly authorized, executed and filed with and accepted by the Secretary
      of State of the State of Nevada.

     

    6.7 Certificate
      of Designation.
      The
      Certificate of Designation shall have been duly authorized, executed and filed
      with and accepted by the Secretary of State of the State of Nevada.

     

    6.8 Opinion.
      The
      Investor shall have received from Baker & Hostetler LLP, counsel for the
      Company, an opinion, dated as of the date hereof, in form and substance
      reasonably satisfactory to the Investor.

     

    SECTION
      7

     

    Conditions
      to Company’s Obligation to Close

     

    The
      Company’s obligation to issue and sell the Shares and the Warrant at the Closing
      is subject to the fulfillment, on or prior to the Closing Date, of the following
      conditions, any of which may be waived in whole or in part by the
      Company:

     

    7.1 Representations
      and Warranties.
      The
      representations and warranties made by the Investor in Section 4 shall be
      true and correct when made, and shall be true and correct on the Closing
      Date.

     

    7.2 Governmental
      Approvals and Filings.
      The
      Company shall have obtained all governmental approvals required in connection
      with the lawful sale and issuance of the Shares and the Warrant.

     

    7.3 Legal
      Requirements.
      At the
      Closing, the sale and issuance by the Company, and the purchase by the Investor,
      of the Shares and the Warrant shall be legally permitted by all laws and
      regulations to which the Investor or the Company are subject.

     

    7.4 Purchase
      Price.
      The
      Investor shall have delivered to the Company the Total Purchase
      Price.

     

    
      
        
        

      

      
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    SECTION
      8

     

    Miscellaneous

     

    8.1 Indemnification.
      The
      Company hereby agrees to indemnify and hold harmless the Investor, its
      affiliates, partners, officers, directors, employees, agents and representatives
      (each, an “Indemnified Party”) against any liability, obligation or proceeding
      by any third party (including any derivative actions brought through or in
      the
      name of the Company ) in connection with (a) the status or conduct of the
      Company, (b) the execution, delivery and performance of this Agreement or any
      other document or instrument entered into in connection with the transactions
      contemplated hereby (including Section 5) or (c) the Indemnified Party’s role
      with the Company or any such transactions.

     

    8.2 Expenses. 
      The
      Company shall pay for all expenses incurred by the Company and the Investor
      in
      connection with the transactions contemplated by this Agreement. The Company
      shall also pay all stamp and other taxes and duties levied in connection with
      the issuance of the Shares of Series A Preferred Stock, or upon the conversion
      thereof, the Conversion Shares. The Investor shall be entitled to deduct the
      amount of such expenses from the Total Purchase Price. 

     

    8.3 Public
      Announcements.
      Except
      as otherwise required by applicable laws, rules or regulations, neither the
      Company, nor the Investor shall make any public announcement with respect to
      this Agreement or the transactions contemplated hereby, without the written
      consent of the other party hereto; provided,
      however,
      that
      the Company shall not be required to obtain such consent if a governmental
      entity specifically requests disclosure; provided, further that the Investor
      may
      review and comment on such disclosure.

     

    8.4 Waivers
      and Amendments.
      Any
      provision of this Agreement may be amended, waived or modified only upon the
      written consent of the Company and the Investor.

     

    8.5 Delays
      or Omissions. 
      Except as expressly provided herein, no delay or omission to exercise any right,
      power or remedy accruing to either party to this Agreement upon any breach
      or
      default of the other party under this Agreement shall impair any such right,
      power or remedy of such non-defaulting party, nor shall it be construed to
      be a
      waiver of any such breach or default, or an acquiescence therein, or of or
      in
      any similar breach or default thereafter occurring, nor shall any waiver of
      any
      single breach or default be deemed a waiver of any other breach or default
      theretofore or thereafter occurring. Any waiver, permit, consent or approval
      of
      any kind or character on the part of any party of any breach or default under
      this Agreement, or any waiver on the part of any party of any provisions or
      conditions of this Agreement, must be in writing and shall be effective only
      to
      the extent specifically set forth in such writing. All remedies, either under
      this Agreement or by law or otherwise afforded to any party to this Agreement,
      shall be cumulative and not alternative.

     

    8.6 Attorney’s
      Fees.
      In the
      event that any suit or action is instituted to enforce any provisions in this
      Agreement, the prevailing party in such dispute shall be entitled to recover
      from the losing party all fees, costs and expenses of enforcing any right of
      such prevailing party under or with respect to this Agreement, including without
      limitation, such reasonable fees and expenses of attorneys and accountants,
      which shall include, without limitation, all fees, costs and expenses of
      appeals.

     

    8.7 Governing
      Law.
      This
      Agreement and all actions arising out of or in connection with this Agreement
      shall be governed by and construed in accordance with the laws of the State
      of
      Nevada, without regard to the conflicts of law provisions of the State of Nevada
      or of any other state.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    8.8 Survival.
      The
      representations, warranties, covenants and agreements made herein shall survive
      the execution and delivery of this Agreement.

     

    8.9 Successors
      and Assigns.
      This
      Agreement, and any and all rights, duties and obligations hereunder, shall
      not
      be assigned, transferred, delegated or sublicensed by either party without
      the
      prior written consent of the non-assigning party; provided, that the Investor
      may assign its rights hereunder (including the rights in Section 5) to any
      of
      its affiliates without the Company’s prior consent. Except as set forth in the
      previous sentence, any attempt by the Investor without such permission to
      assign, transfer, delegate or sublicense any rights, duties or obligations
      that
      arise under this Agreement shall be void. Subject to the foregoing and except
      as
      otherwise provided herein, the provisions of this Agreement shall inure to
      the
      benefit of, and be binding upon, the successors, assigns, heirs, executors
      and
      administrators of the parties hereto.

     

    8.10 Entire
      Agreement.
      This
      Agreement together with the other Transaction Documents constitute and contain
      the entire agreement between the Company and the Investor and supersede any
      and
      all prior agreements, negotiations, correspondence, understandings and
      communications among the parties, whether written or oral, respecting the
      subject matter hereof.

     

    8.11 Notices.
      All
      notices, requests, demands, consents, instructions or other communications
      required or permitted hereunder shall in writing and faxed, mailed or delivered
      to each party as follows: (a) if to the Investor, at the Investor’s address
      or facsimile number set forth on the signature page hereto, or at such other
      address as the Investor shall have furnished the Company in writing, or
      (b) if to the Company, at 9440 Little Santa Monica Blvd., Suite 401,
      Beverly Hills, CA 90210, Attn: Katharine Alade, facsimile: (310) 402-5931,
      or at
      such other address or facsimile number as the Company shall have furnished
      to
      the Investor in writing. All such notices and communications will be deemed
      effectively given the earlier of (i) when received, (ii) when
      delivered personally, (iii) one business day after being delivered by
      facsimile (with receipt of appropriate confirmation), (iv) one business day
      after being deposited with an overnight courier service of recognized standing
      or (v) four days after being deposited in the U.S. mail, first class with
      postage prepaid.

     

    8.12 Severability. 
      If any provision of this Agreement becomes or is declared by a court of
      competent jurisdiction to be illegal, unenforceable or void, portions of such
      provision, or such provision in its entirety, to the extent necessary, shall
      be
      severed from this Agreement, and such court will replace such illegal, void
      or
      unenforceable provision of this Agreement with a valid and enforceable provision
      that will achieve, to the extent possible, the same economic, business and
      other
      purposes of the illegal, void or unenforceable provision. The balance of this
      Agreement shall be enforceable in accordance with its terms. 

     

    8.13 Further
      Assurances. 
      Each party hereto agrees to execute and deliver, by the proper exercise of
      its
      corporate, limited liability company, partnership or other powers, all such
      other and additional instruments and documents and do all such other acts and
      things as may be necessary to more fully effectuate this Agreement.

     

    8.14 Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed an original, but all of which together will constitute one and the same
      agreement. Facsimile copies of signed signature pages will be deemed binding
      originals. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, this Agreement is executed as of the date first written
      above.

    

    
      	 	
              COMPANY:

            
	 	 
	 	
              STRATOS
                RENEWABLES

            
	 	
              CORPORATION

            
	 	 
	 	
              By:

            	 
	 	 	
              Steven
                Magami

            
	 	 	
              President

            
	 	 
	 	
              INVESTOR:

            
	 	 
	 	
              By:

            	 
	 	 
	 	
              By:

            	 
	 	 
	 	
              Address:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT A

     

    CERTIFICATE
      OF DESIGNATION, POWERS, PREFERENCES

    AND
      RIGHTS OF SERIES A PREFERRED STOCK 

    OF
      STRATOS
      RENEWABLES CORPORATION

     

     

    See
      attached.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT B

     

    FORM
      OF WARRANT

     

     

    See
      attached.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    EXHIBIT C

     

    AMENDED
      AND RESTATED ARTICLES OF INCORPORATION 

    OF
      STRATOS
      RENEWABLES CORPORATION

     

    See
      attached.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      
        
          	 

        

      

    

     

    STRATOS
      RENEWABLES CORPORATION

     

     

    SERIES A
      PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

     

    APRIL
      18, 2008ex10-1.htm

    
      

    

    Exhibit 10.1

     

     

    EMPLOYMENT
AGREEMENT

     

    This
EMPLOYMENT AGREEMENT
(this “Agreement”), is made
and entered into effective as of February 1, 2008 (the “Effective Date”), by
and between Waste Connections, Inc., a Delaware corporation (the “Company”), and
Patrick J. Shea (the “Employee”) and amends
and restates in its entirety that certain Employment Agreement effective as of
February 23, 2004 between the Company and the Employee.

     

    NOW, THEREFORE, in
consideration of the premises and the mutual covenants and conditions herein,
the Company and the Employee agree as follows:

     

    1.           Employment;
Acceptance.  The Company hereby employs the Employee and the
Employee hereby accepts employment by the Company on the terms and conditions
hereinafter set forth.

     

    2.           Duties and
Powers.  From the Effective Date to and through February 22,
2008, the Employee shall continue serving in his current capacity as Corporate
Counsel of the Company, reporting directly to the Company's Executive Vice
President and General Counsel.  Beginning February 23, 2008, and
during the Term, the Employee shall serve as acting General Counsel and
Secretary of the Company, reporting directly to the Company's Chairman and Chief
Executive Officer, and shall perform such other duties and responsibilities as
the Chairman and Chief Executive Officer or the Board of Directors (the "Board")
of the Company may reasonably assign to the Employee from time to time;
provided, however, that upon the Company’s filing with the Securities and
Exchange Commission on or around February 2009 of the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2008, subject to the Board’s
approval, the Employee shall from that point forward serve as Vice President,
General Counsel and Secretary of the Company. The Employee shall be based at the
Company's corporate headquarters in Folsom, California. The Employee shall
devote such time and attention to his duties as are reasonably necessary to the
proper discharge of his responsibilities hereunder. The Employee agrees to
perform all duties consistent with (a) policies established from time to time by
the Company and (b) all applicable legal requirements.

     

    3.         
   Term.  The
employment of the Employee by the Company pursuant to this Agreement shall
continue until January 31, 2011 (the “Term”) or until
terminated prior to such date when and as provided in Sections 7 and
8.  On each January 31 following the Effective Date, this Agreement
shall be extended automatically for an additional year, thus extending the Term
to three (3) years from each such date, unless either party shall have given the
other notice of termination hereof as provided herein.

     

    4.         
   Compensation.

     

    4.1           Base
Salary.  Commencing on the Effective Date, the Company hereby
agrees to pay to the Employee an annual base salary of One Hundred Seventy-Five
Thousand Dollars ($175,000); provided, however, that upon the Board’s
appointment of Employee as Vice President, General Counsel and Secretary of the
Company as described in Section 2, and as of February 1, 2009, the Company
hereby agrees to pay to the Employee an annual base salary of Two Hundred
Thousand Dollars ($200,000).  When used herein, “Base Salary” shall
refer to the base salary described in the preceding sentence that is in effect
at that time, and as may be increased from time to time.  Such Base
Salary shall be payable in accordance with the Company’s normal payroll
practices, and such Base Salary is subject to withholding and social security,
unemployment and other taxes.  Increases in Base Salary shall be
considered by the Board.

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.2           Performance
Bonus.  For the calendar year commencing January 1, 2008, and
for each calendar year thereafter, the Employee shall be
eligible to receive an annual cash bonus (the “Bonus”) based on the
Company’s attainment of reasonable financial objectives to be determined
annually by the Board.  The annual Bonus target will equal forty
percent (40%) of the applicable year’s ending Base Salary and will be payable if
the Board determines, in its sole and exclusive discretion, that that year’s
financial objectives have been fully met; provided, however, that upon the
Board’s appointment of Employee as Vice President, General Counsel and Secretary
of the Company as described in Section 2, the annual Bonus target will equal
fifty percent (50%) of the applicable year’s ending Base Salary.  The
Bonus shall be paid in accordance with the Company’s bonus plan, as approved by
the Board, and, in any event, within two and a half (2 1/2) months after the end
of the fiscal year to which the bonus relates.

     

    4.3           2008 Annual Equity
Grant.  On or about the Effective Date, the Company will grant
Employee three thousand (3,000) Restricted Stock Units under the Company’s
Second Amended and Restated 2004 Equity Incentive Plan.  Except as
otherwise provided herein, the RSUs will vest and the shares of common stock
underlying them will become issuable in a series of five (5) successive equal
annual installments upon Employee’s completion of each year of continuous status
as an employee over the five (5) year vesting period measured from the grant
date.

     

    4.4           Grants of Equity
Compensation.  Employee shall be entitled to participate in
Stock Option, Restricted Stock, Restricted Stock Unit (“RSU”) and other equity
incentive plans presently in effect or in effect from time to time in the future
on such terms and to such level of participation as the Board or the
Compensation Committee of the Board shall determine to be appropriate, bearing
in mind the Employee’s position and responsibilities.

     

    Except as
otherwise provided herein, the terms of any Options, Restricted Stock, RSUs and
other equity incentives shall be governed by the relevant plans under which they
are issued and described in detail in applicable agreements between the Company
and the Employee.

     

    4.5           Bar Dues and Continuing
Education. The Company shall reimburse Employee for dues payable to the
State Bar of California and the American Bar Association, or other professional
organizations reasonably related to the Employee's duties and shall pay or
reimburse the Employee for costs reasonably incurred in attending seminars and
conferences to satisfy minimum continuing education requirements of the State
Bar of California or to further his expertise in areas relevant to his
employment by the Company. The Company recognizes that some conferences may
require travel by the Employee and the Company agrees to reimburse Employee for
the reasonable costs of travel.

     

    4.6           Other Benefits.  The
Company shall provide the Employee with a cellular telephone and will pay or
reimburse the Employee’s monthly service fee and costs of calls attributable to
Company business.  The Employee shall be entitled to paid annual
vacation, which shall accrue on the same basis as for other employees of the
Company of similar rank, but which shall in no event be less than three (3)
weeks for any twelve (12) month period through February 2010, and four (4) weeks
for any twelve (12) month period thereafter.  The Employee also shall
be entitled to participate, on the same terms as other employees of the Company
participate, in any medical, dental or other health plan, pension plan,
profit-sharing plan and life insurance plan that the Company may adopt or
maintain, any of which may be changed, terminated or eliminated by the Company
at any time in its exclusive discretion.

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    5.       
     Confidentiality.  During
the Term of his employment, and at all times thereafter, the Employee shall not,
without the prior written consent of the Company, divulge to any third party or
use for his own benefit or the benefit of any third party or for any purpose
other than the exclusive benefit of the Company, any confidential or proprietary
business or technical information revealed, obtained or developed in the course
of his employment with the Company and which is otherwise the property of the
Company or any of its affiliated corporations, including, but not limited to,
trade secrets, customer lists, formulae and processes of manufacture; provided,
however, that nothing herein contained shall restrict the Employee’s ability to
make such disclosures during the course of his employment as may be necessary or
appropriate to the effective and efficient discharge of his duties to the
Company.

     

    6.          
  Property.  Both
during the Term of his employment and thereafter, the Employee shall not remove
from the Company’s offices or premises any Company documents, records,
notebooks, files, correspondence, reports, memoranda and similar materials or
property of any kind unless necessary in accordance with the duties and
responsibilities of his employment.  In the event that any such
material or property is removed, it shall be returned to its proper file or
place of safekeeping as promptly as possible.  The Employee shall not
make, retain, remove or distribute any copies, or divulge to any third person
the nature or contents of any of the foregoing or of any other oral or written
information to which he may have access, except as disclosure shall be necessary
in the performance of his assigned duties.  On the termination of his
employment with the Company, the Employee shall leave with or return to the
Company all originals and copies of the foregoing then in his possession or
subject to his control, whether prepared by the Employee or by
others.

     

    7.      
      Termination.

     

    7.1           For Cause.  The
Company, by action of the Board, may terminate this Agreement and the Employee’s
employment for Cause (as defined below) on delivery to the Employee of a Notice
of Termination (as defined in Section 9.1 below).  For purposes of
this agreement, the term “Cause” shall
mean:

     

    
      	
               
      

            	
              (a)

            	
              a
      material breach by the Employee of any of the terms of this Agreement that
      is not immediately corrected following written notice of default
      specifying such breach;

            

    

     

    
      	
               
      

            	
              (b)

            	
              conviction
      of a felony;

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      breach of any of the provisions of Section 11
  below;

            

    

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (d)

            	
              repeated
      intoxification with alcohol or drugs while on Company premises during its
      regular business hours to such a degree that, in the reasonable judgment
      of the other managers of the Company, the Employee is abusive or incapable
      of performing his duties and responsibilities under this Agreement;
      and

            

    

     

    
      	
               
      

            	
              (e)

            	
              misappropriation
      of  property belonging to the Company and/or any of its
      affiliates.

            

    

     

    On such termination for Cause, the
Employee shall be entitled only to the Employee’s Base Salary through the date
of such termination, and shall not be entitled to any other compensation,
including, without limitation, any severance compensation.  Without
limitation of the foregoing, on termination pursuant to this Section 7.1, the
Employee shall forfeit: (i) his Bonus under Section 4.2 for the year in
which such termination occurs; and (ii) all outstanding but unvested options and
rights relating to capital stock of the Company, and all RSUs and shares of the
Company’s restricted stock issued to the Employee that as of the termination
date are still unvested and subject to restrictions on transfer.

    

    7.2           Without Cause.  The
employment of the Employee may be terminated without Cause at any time by the
Company on delivery to the Employee of a written Notice of Termination (as
defined in Section 9.1).  In the event of such a termination without
Cause pursuant to this Section 7.2 that constitutes Employee’s Separation From
Service (as defined in Section 9.3), then on the Date of Termination (as defined
in Section 9.2) pursuant to this Section 7.2, the Company shall, in lieu of
any payments under Section 4.1 and 4.2 for the remainder of the Term, pay to the
Employee an amount equal to the lesser of: (a) the Employee’s Base Salary for a
period of one (1) year from the date of termination, and (b) the Employee’s Base
Salary for the remainder of the Term.  In addition, the Employee shall
be entitled to the pro-rated target Bonus available to the Employee under
Section 4.2 for the year in which the termination occurs.  Such
payment by the Company shall be paid in accordance with the Company’s normal
payroll practices and not as a lump sum payment.  In addition, the
Company will pay as incurred the Employee’s expenses, up to Fifteen Thousand
Dollars ($15,000), associated with career counseling and resume
development.  The Company shall also pay to the Employee an amount
equal to the Company’s portion (but not the Employee’s portion) of the cost of
medical, dental and other health plan insurance for Employee, his wife and
children at the rate in effect on the Date of Termination for a period of one
(1) year from the Date of Termination.  In addition, on termination of
the Employee under this Section 7.2, all of the Employee’s outstanding but
unvested options and rights relating to capital stock of the Company shall
immediately vest and become exercisable, and all RSUs and shares of the
Company’s restricted stock issued to the Employee shall immediately vest and
become unrestricted and freely transferable.  The exercisability of
any such options and rights shall be extended to the earlier of (A) the
expiration of the term of such options and rights or (B) the first (1st)
anniversary of the Date of Termination.  The Employee acknowledges
that extending the exercisability of any incentive stock options pursuant to
this Section 7.2 or Sections 7.3 or 7.4 below, could cause such option to lose
its tax-qualified status if it is an incentive stock option under the Internal
Revenue Code of 1986, as amended (the “Code”) and agrees
that the Company shall have no obligation to compensate the Employee for any
additional taxes he incurs as a result.

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    7.3           Termination on
Disability.  If during the Term the Employee should fail to
perform his duties hereunder on account of physical or mental illness or other
incapacity which the Company shall in good faith determine renders the Employee
incapable of performing his duties hereunder, and such illness or other
incapacity shall continue for a period of more than six (6) consecutive months
(“Disability”),
the Company shall have the right, on written Notice of Termination delivered to
the Employee, to terminate the Employee’s employment under this
Agreement.  During the period that the Employee shall have been
incapacitated due to physical or mental illness, the Employee shall continue to
receive the full Base Salary provided for in Section 4.1 hereof at the rate then
in effect until the Date of Termination pursuant to this Section
7.3.  In the event of Employee’s termination for Disability pursuant
to this Section 7.3 that constitutes Employee’s Separation from Service, then on
the Date of Termination, the Company shall pay to the Employee the payments and
other benefits applicable to termination without Cause set forth in Section 7.2
hereof, other than those related to career counseling and resume
development.  The Company shall also pay, on behalf of the Employee,
an amount equal to the Company’s portion (not the Employee’s portion) of the
cost of medical, dental and other health plan insurance for Employee, his wife
and children at the rate in effect on the Date of Termination for a period of
one (1) year from the Date of Termination.  In addition, on such
termination, all of the Employee’s outstanding but unvested options and rights
relating to capital stock of the Company shall immediately vest and become
exercisable, and all RSUs and shares of the Company’s restricted stock issued to
the Employee shall immediately vest and become unrestricted and freely
transferable.  The exercisability of any such options and rights shall
be extended to the earlier of (A) the expiration of the term of such options or
rights or (B) the first (1st)
anniversary of the Employee’s termination.

     

    7.4           Termination on
Death.  If the Employee shall die during the Term, the
employment of the Employee shall thereupon terminate.  On the Date of
Termination pursuant to this Section 7.4, the Company shall pay to the
Employee’s estate the payments and other benefits applicable to termination
without Cause set forth in Section 7.2 hereof, other than those related to
career counseling and resume development.  In addition, on termination
of the Employee under this Section 7.4, all of the Employee’s outstanding but
unvested options and rights relating to capital stock of the Company shall
immediately vest and become exercisable, and all RSUs and shares of the
Company’s restricted stock issued to the Employee shall immediately vest and
become unrestricted and freely transferable.  The exercisability of
any such options and rights shall be extended to the earlier of (A) the
expiration of the term of such options or rights or (B) the first (1st)
anniversary of the Employee’s termination.  The provisions of this
Section 7.4 shall not affect the entitlements of the Employee’s heirs,
executors, administrators, legatees, beneficiaries or assigns under any employee
benefit plan, fund or program of the Company.

     

    7.5           No Limitation on Company’s Right to
Terminate.  Any other provision in this Agreement to the
contrary notwithstanding, the Company shall have the right, in its absolute
discretion, to terminate this Agreement and the Employee’s employment hereunder
at any time in accordance with the foregoing provisions of this Section 7, it
being the intent and purpose of the foregoing provisions of this Section 7 only
to set forth the consequences of termination with respect to severance or other
compensation payable to the Employee on termination in the circumstances
indicated.

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    8.        
    Termination by
Employee.  The Employee may terminate his employment hereunder
on written Notice of Termination delivered to the Company setting forth the
effective Date of Termination.  If the Employee terminates his
employment hereunder, he shall be entitled to receive, and the Company agrees to
pay on the effective Date of Termination specified in the Notice of Termination,
his current Base Salary under Section 4.1 hereof on a prorated basis to such
Date of Termination.  On termination pursuant to this Section 8, the
Employee shall forfeit: (i) his Bonus under Section 4.2 for the year in which
such termination occurs; and (ii) all outstanding but unvested options and
rights relating to capital stock of the Company, and all RSUs and shares of the
Company’s restricted stock issued to the Employee that as of the termination
date are still unvested and subject to restrictions on transfer.

     

    9.       
     Provisions Applicable to Termination
of Employment.

     

    9.1           Notice of
Termination.  Any purported termination of Employee’s
employment by the Company pursuant to Section 7 shall be communicated by Notice
of Termination to the Employee as provided herein, and shall state the specific
termination provisions in this Agreement relied on and set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Employee’s employment (“Notice of
Termination”).  If the Employee terminates under Section 8, he
shall give the Company a Notice of Termination.

     

    9.2           Date of
Termination.  For all purposes, “Date of Termination”
shall mean, for Disability, thirty (30) days after Notice of Termination is
given to the Employee (provided the Employee has not returned to duty on a
full-time basis during such 30-day period), or, if the Employee’s employment is
terminated by the Company for any other reason or by the Employee, the date on
which a Notice of Termination is given.

     

    9.3           Separation from
Service.  For all purposes, “Separation from
Service” shall mean Employee’s “separation from service” with the Company
within the meaning of Section 409A of the Code and the regulations and other
guidance promulgated thereunder.

     

    9.4           Benefits on
Termination.  On termination of this Agreement by the Company
pursuant to Section 7 or by the Employee pursuant to Section 8, all
profit-sharing, deferred compensation and other retirement benefits payable to
the Employee under benefit plans in which the Employee then participated shall
be paid to the Employee in accordance with the provisions of the respective
plans.

     

    9.5           Section
409A.  Notwithstanding any provision to the contrary in the
Agreement, if Employee is deemed at the time of Employee’s Separation from
Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of
the Code, to the extent delayed commencement of any portion of the benefits to
which Employee is entitled under this Agreement is required in order to avoid a
prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion
of Employee’s benefits shall not be provided to Employee prior to the earlier of
(A) the expiration of the six-month period measured from the date of Employee’s
“separation from service” with the Company (as such term is defined in the
Treasury Regulations issued under Section 409A of the Code) or (B) the date of
Employee’s death.  Upon the expiration of the applicable Code Section
409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 9.5
shall be paid in a lump sum to Employee, and any remaining payments due under
the Agreement shall be paid as otherwise provided herein.

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    10.           Change In
Control.

     

    10.1          Payments on Change in
Control.  Notwithstanding any provision in this Agreement to
the contrary, unless the Employee elects in writing to waive this provision, a
Change in Control (as defined below) that constitutes a “change in control” of
the Company (within the meaning of Section 409A of the Code and the Department
of Treasury regulations and other guidance promulgated thereunder) shall be
deemed a termination of the Employee without Cause, and, in lieu of any benefits
payable to the Employee under Section 7.2, 7.3, 7.4 or 8, the Employee shall be
entitled to receive and the Company agrees to pay to the Employee the same
amount determined under Section 7.2 that is payable to the Employee on a
termination without Cause that constitutes a Separation from Service provided,
however, that such amount shall be payable in a lump sum on the date of such
Change in Control (which shall be deemed the Employee’s Date of Termination) and
not in installments as provided in Section 7.2.  In addition, on
a Change in Control, all of the Employee’s outstanding but unvested options and
rights relating to capital stock of the Company shall immediately vest and
become exercisable, the exercisability of any such options and rights shall be
extended to the earlier of (A) the expiration of the term of such options or
rights or (B) the first anniversary of the date of such Change in Control, and
all RSUs and shares of the Company’s restricted stock issued to the Employee
shall immediately vest and become unrestricted and freely
transferable.  For the avoidance of doubt, upon payment to the
Employee of the benefits provided by this paragraph of this Section 10.1, the
Employee shall no longer be entitled to any benefits otherwise payable to the
Employee under Section 7.2, 7.3, 7.4 or 8 of this Agreement regardless of the
Employee’s termination of employment with the Company.

     

    After a Change in Control, if any
previously outstanding option or right (the “Terminated Option”)
relating to the Company’s capital stock does not remain outstanding, the
successor to the Company or its then Parent (as defined below) shall
either:

     

    
      	
               
      

            	
              (a)

            	
              Issue
      an option, warrant or right, as appropriate (the “Successor
      Option”), to purchase common stock of such successor or Parent in
      an amount such that on exercise of the Successor Option the Employee would
      receive the same number of shares of the successor’s/Parent’s common stock
      as the Employee would have received had the number of shares of Company
      common stock subject to the Terminated Option been realized by the
      Employee immediately prior to the transaction resulting in the Change in
      Control and the Employee received shares of such successor/Parent in such
      transaction.  The aggregate exercise price for all of the shares
      covered by such Successor Option shall equal the aggregate exercise price
      of the Terminated Option; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              Pay
      the Employee a bonus within ten (10) days after the consummation of the
      Change in Control in an amount agreed to by the Employee and the
      Company.  Such amount shall be at least equivalent on an
      after-tax basis to the net after-tax gain that the Employee would have
      realized if the Employee had been issued a Successor Option under clause
      10.1(a) above and had immediately exercised, or otherwise received the
      stock subject to, such Successor Option and sold the underlying stock,
      taking into account the different tax rates that apply to such bonus and
      to such gain, and such amount shall also reflect other differences to the
      Employee between receiving a bonus under this clause 10.1(b) and receiving
      a Successor Option under clause 10.1(a)
above.

            

    

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    10.2          Definitions.  For
the purposes of this Agreement, a Change in Control shall be deemed to have
occurred if: (i) there shall be consummated (aa) any reorganization, liquidation
or consolidation of the Company, or any merger or other business combination of
the Company with any other corporation, other than any such merger or other
combination that would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such transaction, and (bb) any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the assets of the Company; or
(ii) if any “person” (as defined in Section 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)),
shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of fifty percent (50%) or more of the Company’s
outstanding voting securities (except that for purposes of this Section 10.2,
“person” shall not include any person (or any person that controls, is
controlled by or is under common control with such person) who as of the date of
this Agreement owns ten percent (10%) or more of the total voting power
represented by the outstanding voting securities of the Company, or a trustee or
other fiduciary holding securities under any employee benefit plan of the
Company, or a corporation that is owned directly or indirectly by the
stockholders of the Company in substantially the same percentage as their
ownership of the Company); or (iii) during any two (2) year period, individuals
who at the beginning of such period constituted the entire Board shall cease for
any reason to constitute at least one-half (1⁄2) of the membership thereof unless
the election, or the nomination for election by the Company’s shareholders, of
each new director was approved by a vote of at least one-half of the directors
then still in office who were directors at the beginning of the
period.

     

    The term “Parent” means a
corporation, partnership, trust, limited liability company or other entity that
is the ultimate “beneficial owner” (as defined above) of fifty percent (50%) or
more of the Company’s outstanding voting securities.

     

    11.           Non-Competition and
Non-Solicitation.

     

    11.1           In
consideration of the provisions hereof, for the Restricted Period (as defined
below), the Employee will not, except as specifically provided below, anywhere
in any county in the State of California or anywhere in any other state in which
the Company is engaged in business as of such termination date (the “Restricted
Territory”), directly or indirectly, acting individually or as the owner,
shareholder, partner or management employee of any entity: (i) engage in the
operation of a solid waste collection, transporting or disposal business,
transfer facility, recycling facility, materials recovery facility or solid
waste landfill; or (ii) enter the employ as a manager of, or render any personal
services to or for the benefit of, or assist in or facilitate the solicitation
of customers for, or receive remuneration in the form of management salary,
commissions or otherwise from, any business engaged in such activities in such
counties; or (iii) receive or purchase a financial interest in, make a loan to,
or make a gift in support of, any such business in any capacity, including
without limitation, as a sole proprietor, partner, shareholder, officer,
director, principal agent or trustee; provided, however, that the Employee may
own, directly or indirectly, solely as an investment, securities of any business
traded on any national securities exchange or quoted on any NASDAQ market,
provided the Employee is not a controlling person of, or a member of a group
which controls, such business and further provided that the Employee does not,
in the aggregate, directly or indirectly, own two percent (2%) or more of any
class of securities of such business.  The term “Restricted Period”
shall mean the earlier of: (i) the maximum period allowed under applicable law;
and (ii) (aa) in the case of a Change in Control, until the first anniversary of
the effective date of the Change in Control, (bb) in the case of a termination
by the Company without Cause pursuant to Section 7.2 and provided the
Company has made the payments required under Section 7.2, as the case may be,
until the first (1st)
anniversary of the Date of Termination, or (cc) in the case of Termination for
Cause by the Company pursuant to Section 7.1 or by the Employee pursuant to
Section 8, until the first (1st)
anniversary of the Date of Termination.  If the Company terminates the
Employee without Cause, the Employee may shorten the Restricted Period by the
length of any period that the Employee elects to waive his right to receive
severance payments under Section 7.2.  For example, if the Employee
waives the right to receive all severance payments under Section 7.2, the
Restricted Period shall be zero (0) months; if the Employee elects to receive
severance payments under Section 7.2 for eight (8) months, the Restricted Period
shall be eight (8) months.

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    11.2          After
termination of this Agreement by the Company or the Employee pursuant to Section
7 or 8 or termination of this Agreement upon a Change in Control pursuant to
Section 10, the Employee shall not: (i) solicit any residential or commercial
customer of the Company to whom the Company provides service pursuant to a
franchise agreement with a public entity in the Restricted Territory; or (ii)
solicit any residential or commercial customer of the Company to enter into a
solid waste collection account relationship with a competitor of the Company in
the Restricted Territory; or (iii) solicit any such public entity to enter into
a franchise agreement with any such competitor, or (iv) solicit any officer,
employee or contractor of the Company to enter into an employment or contractor
agreement with a competitor of the Company or otherwise interfere in any such
relationship; or (v) solicit on behalf of a competitor of the Company any
prospective customer of the Company in the Restricted Territory that the
Employee called on or was involved in soliciting on behalf of the Company during
the Term, in each case until the first (1st)
anniversary of the Termination Date or the effective date of such Change in
Control (whichever is later), unless otherwise permitted to do so by
Section 11.1.

     

    11.3          If
the final judgment of a court of competent jurisdiction declares that any term
or provision of this Section 11 is invalid or unenforceable, the parties agree
that the court making the determination of invalidity or unenforceability shall
have the power to reduce the scope, duration or area of the term or provision,
to delete specified words or phrases or to replace any invalid or unenforceable
term or provision with a term or provision that is valid and enforceable and
that comes closest to expressing the intention of the invalid or unenforceable
term or provision, and this Agreement shall be enforceable as so modified after
the expiration of the time within which the judgment may be
appealed.

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    12.           Indemnification.  As
an officer and agent of the Company, the Employee shall be fully indemnified by
the Company to the fullest extent permitted by applicable law in connection with
his employment hereunder.

     

    13.           Survival of
Provisions.  The obligations of the Company under Section 12 of
this Agreement, and of the Employee under Section 11 of this Agreement, shall
survive both the termination of the Employee’s employment and this
Agreement.

     

    14.           No Duty to Mitigate; No
Offset.  The Employee shall not be required to mitigate damages
or the amount of any payment contemplated by this Agreement, nor shall any such
payment be reduced by any earnings that the Employee may receive from any other
sources or offset against any other payments made to him or required to be made
to him pursuant to this Agreement.

     

    15.           Assignment; Binding
Agreement.  The Company may assign this Agreement to any
parent, subsidiary, affiliate or successor of the Company.  This
Agreement is not assignable by the Employee and is binding on him and his
executors and other legal representatives.  This Agreement shall bind
the Company and its successors and assigns and inure to the benefit of the
Employee and his heirs, executors, administrators, personal representatives,
legatees or devisees.  The Company shall assign this Agreement to any
entity that acquires its assets or business.

     

    16.           Notice.  Any written
notice under this Agreement shall be personally delivered to the other party or
sent by a nationally recognized overnight delivery service or by certified or
registered mail, return receipt requested and postage prepaid, to such party at
the address set forth in the records of the Company or to such other address as
either party may from time to time specify by written notice.

     

    17.           Entire Agreement;
Amendments.  This Agreement contains the entire agreement of
the parties relating to the Employee’s employment and supersedes all oral or
written prior discussions, agreements and understandings of every nature between
them, except for that certain Indemnification Agreement, dated as of August 1,
2006, by and between the Company and the Employee, which shall remain in full
force and effect.  This Agreement may not be changed except by an
agreement in writing signed by the Company and the Employee.

     

    18.           Waiver.  The waiver
of a breach of any provision of this Agreement shall not operate as or be
construed to be a waiver of any other provision or subsequent breach of this
Agreement.

     

    19.           Governing Law and Jurisdictional
Agreement.  This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of
California.  The parties irrevocably and unconditionally submit to the
jurisdiction and venue of any court, federal or state, situated within
Sacramento County, California, for the purpose of any suit, action or other
proceeding arising out of, or relating to or in connection with, this
Agreement.

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    20.           Severability.  In
case any one or more of the provisions contained in this Agreement is, for any
reason, held invalid in any respect, such invalidity shall not affect the
validity of any other provision of this Agreement, and such provision shall be
deemed modified to the extent necessary to make it enforceable.

     

    21.           Enforcement.  It is
agreed that it is impossible to measure fully, in money, the damage which will
accrue to the Company in the event of a breach or threatened breach of Sections
5, 6, or 11 of this Agreement, and, in any action or proceeding to enforce the
provisions of Sections 5, 6 or 11 hereof, the Employee waives the claim or
defense that the Company has an adequate remedy at law and will not assert the
claim or defense that such a remedy at law exists.  The Company is
entitled to injunctive relief to enforce the provisions of such sections as well
as any and all other remedies available to it at law or in equity without the
posting of any bond.  The Employee agrees that if the Employee
breaches any provision of Section 11, the Company may recover as partial damages
all profits realized by the Employee at any time prior to such recovery on the
exercise of any warrant, option or right to purchase the Company’s Common Stock
and the subsequent sale of such stock, and may also cancel all outstanding such
warrants, options and rights.

     

    22.           Counterparts.  This
Agreement may be executed in one or more facsimile or original counterparts,
each of which shall be deemed an original and both of which together shall
constitute one and the same instrument.

     

    23.           Due Authorization. The
execution of this Agreement has been duly authorized by the Company by all
necessary corporate action.

     

    

     

    [Signatures
appear on the following page]

     

     

    
      Employment
Agreement: P. Shea

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, this
Employment Agreement has been duly executed by or on behalf of the parties
hereto as of the date first above written.

     

    
      	 
      	Waste
      Connections, Inc.
	 	 	 
	 	 	 
	
              ______________________________

            	
              By:

            	
              _________________________________

            
	      
              Patrick
      J. Shea

            	 	      
              Ronald
      J. Mittelstaedt,

            
	 	 	      
              Chief
      Executive Officer

            
	
              Address:

            	 
      	 
      

    

     

     

     

    
      Employment
Agreement: P. Shea

       

      S-1

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