Document:

OMNIBUS
      AMENDMENT AND WAIVER

    

    This
      Omnibus Amendment and Waiver (this “Amendment”),
      dated
      as of April 30, 2008, by and between Windswept Environmental Group, Inc., a
      Delaware corporation (the “Company”),
      Laurus Master Fund, Ltd., a Cayman Islands company (“Laurus”),
      Valens Offshore SPV I, Ltd., a Cayman Islands company (“VOFSPVI”),
      Valens U.S. SPV I, LLC, a Delaware limited liability company (“VUSSPVI”
and
      together with Laurus and VOFSPVI, the “Holders”
and
      each, a “Holder”)
      and LV
      Administrative Services, Inc. as agent (the “Agent”)
      for
      the benefit of each of the Holders, amends (i) that certain Amended and Restated
      Secured Convertible Term Note, dated as of September 29, 2006, issued by the
      Company to Laurus, and subsequently assigned in part by Laurus to VOFSPVI and
      VUSSPVI (as previously, and as maybe, amended, modified, or supplemented from
      time to time, the “September
      2006 Convertible Note”).
      Capitalized terms used but not defined herein shall have the meanings ascribed
      to such terms in the September 2006 Convertible Note. Reference is also made
      to
      the Securities Purchase Agreement, dated as of June 30, 2005, by and between
      the
      Company and Laurus (as amended, modified or supplemented from time to time,
      the
“Purchase
      Agreement”
and
      together with the September 2006 Convertible Note and the Related Agreements
      as
      defined in the Purchase Agreement, the “Loan
      Documents”).

     

    PREAMBLE

    

    WHEREAS,
      the
      Company and Holders, as applicable, have agreed to make certain changes to
      the
      September 2006 Convertible Note as set forth herein; and

     

    WHEREAS,
      the
      Company has agreed to make certain payments as set forth herein.

     

    NOW,
      THEREFORE,
      in
      consideration of the above, and for other good and valuable consideration,
      the
      receipt and sufficiency of which is hereby acknowledged, the parties hereto
      agree as follows:

     

    Waiver
      and Amendment

     

    1. Notwithstanding
      the terms and conditions of (i) that certain Omnibus Amendment to Warrant,
      Waiver to Note and Lockup Agreement dated as of March 31, 2008 by and among
      the
      Company, Laurus, VOFSPVI, VUSSPVI, Agent and PSource Structured Debt Limited
      and
      (ii) that certain waiver dated as of February 29, 2008 by the Company, Laurus,
      VOFSPVI and VUSSPVI, the parties hereby acknowledge that principal and/or
      interest payments due under the terms of the September 2006 Convertible Note,
      on
      March 1, 2008, April 1, 2008 and May 1, 2008 are hereby waived and deferred
      (all
      such amounts the “Deferred
      Amounts”)
      on the
      terms, and subject to the conditions, set forth herein. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    2. The
      Company hereby covenants and agrees that the Deferred Amounts shall be payable
      in full on the earlier to occur of the Maturity Date and the date upon which
      all
      obligations arising under the Loan Documents have been paid in full. For the
      avoidance of doubt, from and after June 1, 2008, regularly scheduled amortizing
      Monthly Amounts required pursuant to the terms of the September 2006 Convertible
      Note will be due and payable per the terms and on the date set forth in the
      September 2006 Convertible Note. 

     

    3. In
      consideration of the foregoing, the Company hereby agrees that, on the earlier
      to occur of the Maturity Date and the date upon which all obligations arising
      under the Loan Documents have been paid in full, the Company shall pay $50,000
      in cash to Agent (the “Holder
      Payment”)
      which
      Holder Payment shall be distributed by the Agent to each Holder as follows:
      

     

    $2,653.08
      to VOFSPVI (the “VOF
      Payment”)

    $1,950.93
      to VUSSPVI (the “VUS
      Payment”)

    $45,395.99
      to Laurus (the “Laurus
      Payment”)

    

    In
      respect of the Laurus Payment only, Laurus and the Company hereby agree that
      the
      fair market value of the Laurus Payment (as reasonably determined by the
      parties) received in consideration of the amendments to the September 2006
      Convertible Note made hereunder is hereby designated as interest and,
      accordingly, shall be treated, on a pro rata basis, as a reduction of the
      remaining stated Principal Amount (which reduced Principal Amount shall be
      treated as the issue price) of the September 2006 Convertible Note for U.S.
      federal income tax purposes under and pursuant to Treasury Regulation Sections
      1.1001-3(e)(2)(iii), 1.1273-2(g)(2)(ii) and 1.1274-2(b)(1). The parties further
      agree to file all applicable tax returns in accordance with such
      characterization and shall not take a position on any tax return or in any
      judicial or administrative proceeding that is inconsistent with such
      characterization. Notwithstanding the foregoing, nothing contained in this
      paragraph shall or shall be deemed to modify or impair in any manner whatsoever
      the Company’s obligations from time to time owing to Laurus under the
      Loan Documents.

    

    4. The
      waiver and amendments set forth above shall be effective as of the date first
      above written (the “Amendment
      Effective Date”)
      if
      each of the Company, the Holders and the Agent shall have duly executed this
      Amendment and the Company shall have delivered to the Agent its respective
      counterpart to this Amendment.

     

    5. Except
      as
      specifically set forth in this Amendment or as previously agreed to in writing
      by the appropriate parties, there are no other amendments, modifications or
      waivers to the Loan Documents, and all other forms, terms and provisions of
      the
      Loan Documents remain in full force and effect.

     

    6. The
      Company hereby represents and warrants to the Holders that (i) after giving
      effect to this Amendment, no Event of Default (as defined in the Loan Documents)
      exists on the date hereof, (ii) on the date hereof, after giving effect to
      this
      Amendment, all representations and warranties made by the Company in connection
      with the Loan Documents, as amended, modified or supplemented continues to
      be
      true, correct and complete as of the first date given and (iii) on the date
      hereof, after giving effect to this Amendment, all of the Company’s and its
      Subsidiaries’ covenant requirements have been met.

     

    7. This
      Amendment shall be binding upon the parties hereto and their respective
      successors and permitted assigns and shall inure to the benefit of and be
      enforceable by each of the parties hereto and their respective successors and
      permitted assigns. THIS
      AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY
      THE
      LAW OF THE STATE OF NEW YORK.
      This
      Amendment may be executed in any number of counterparts, each of which shall
      be
      an original, but all of which shall constitute one instrument.

     

    [signature
      page follows]

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      each of
      the parties hereto has executed this Amendment or has caused this Amendment
      to
      be executed on its behalf by a representative duly authorized, all as of the
      date first above set forth.

    

    
      	
              COMPANY:

            	 	
              HOLDERS:

            
	 	 	 
	
              Windswept
                Environmental Group, Inc.

            	 	
              Laurus
                Master Fund, Ltd.

              By:
                Laurus Capital Management, LLC, its investment manager

            
	 	 	 
	 	 	 
	
              By:

            	
              /s/
                Michael O’Reilly

            	 	
              By:

            	
              /s/
                Scott Bluestein

            
	
              Name:

            	
              Michael
                O’Reilly

            	 	
              Name:

            	
              Scott
                Bluestein

            
	
              Title:

            	
              President/CEO

            	 	
              Title:

            	
              Authorized
                Signatory

            

    

     

    
      	
              Valens
                Offshore SPV I, Ltd.

              By:
                Valens Capital Management, LLC, its investment manager

            
	 
	 
	
              By:

            	
              /s/
                Scott Bluestein

            
	
              Name:

            	
              Scott
                Bluestein

            
	
              Title:

            	
              Authorized
                Signatory

            

    

     

    
      	
              Valens
                U.S. SPV I, LLC

              By:
                Valens Capital Management, LLC, its investment manager

            
	 
	 
	
              By:

            	
              /s/
                Scott Bluestein

            
	
              Name:

            	
              Scott
                Bluestein

            
	
              Title:

            	
              Authorized
                Signatory

            

    

     

    

    
      	
              AGENT:

            
	
              LV
                Administrative Service, Inc. as Agent

            
	
              By:

            	
              /s/
                Scott Bluestein

            
	
              Name:

            	
              Scott
                Bluestein

            
	
              Title:

            	
              Authorized
                Signatory

            

    

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
              AGREED
                AND ACKNOWLEDGED:

            	 
	 	 
	
              TRADE-WINDS
                ENVIRONMENTAL RESTORATION INC.

            	 
	 	 
	 	 
	
              By:

            	
              /s/
                Michael O’Reilly

            	 
	
              Name:

            	
              Michael
                O’Reilly

            	 
	
              Title:

            	
              President/CEO

            	 

    

    

    
      	
              NORTH
                ATLANTIC LABORATORIES, INC.

            	 
	 	 
	 	 
	
              By:

            	
              /s/
                Michael O’Reilly

            	 
	
              Name:

            	
              Michael
                O’Reilly

            	 
	
              Title:

            	
              President/CEO

            	 

    

    

    
      	
              ENVIRONMENTAL
                RESTORATION, INC.

            
	 
	 
	
              By:

            	
              /s/
                Michael O’Reilly

            
	
              Name:

            	
              Michael
                O’Reilly

            
	
              Title:

            	
              President/CEO

            

    

    

    
      	
              RESTORENET,
                INC.

            
	 
	 
	
              By:

            	
              /s/
                Michael O’Reilly

            
	
              Name:

            	
              Michael
                O’Reilly

            
	
              Title:

            	
              President/CEO

            

    

    

    
      
         

      

      
        8WONDER
      AUTO TECHNOLOGY, INC.

    

    2008
      EQUITY INCENTIVE PLAN

    

    
      	
              1.

            	
              Purposes.
                This Plan permits the Administrator to grant Options, Restricted
                Stock,
                Restricted Stock Units, Stock Appreciation Rights, and Other Share-Based
                Awards in order to retain, attract and motivate Employees, Directors
                and
                Consultants and to provide such
                persons with equity ownership opportunities and performance-based
                incentives that are intended to align their interests with those
                of our
                stockholders. 

            

    

     

    
      	
              2.

            	
              Stock
                Subject to the Plan. Subject to adjustment as provided in Section
                12,
                a
                maximum of three and a half million (3,500,000) Shares will be available
                for issuance under the Plan. The Shares may be authorized and unissued
                Shares or Shares now held or subsequently acquired by the
                Company.

            

    

     

    If
      an
      Award granted under the Plan lapses, is forfeited, terminated or canceled,
      or
      expires without being exercised or without the issuance of Shares, the unissued
      and unpurchased Shares subject to the Award will become available for future
      grant or sale under the Plan (unless the Plan has terminated). 

     

    Shares
      that have actually been issued under the Plan under any Award will not be
      returned to the Plan and will not become available for grant or sale under
      the
      Plan. With respect to SARs, only Shares actually issued pursuant to a SAR will
      cease to be available under the Plan; all remaining Shares subject to the SARs
      will remain available for future grant or sale under the Plan (unless the Plan
      has terminated). Except with respect to issued Shares, Shares withheld by the
      Company to pay the exercise price of an Award or to satisfy tax withholding
      obligations with respect to an Award will become available for future grant
      or
      sale under the Plan. To the extent an Award under the Plan is paid out in cash
      rather than Shares, such cash payment will not reduce the number of Shares
      available for issuance under the Plan.

     

    The
      Company, during the term of this Plan, will at all time reserve and keep
      available such number of Shares as will be sufficient to satisfy the
      requirements of the Plan.

     

    
      	
              3.

            	
              Administration
                of the Plan.

            

    

     

    
      	 	
              a.

            	
              Administration.
                The
                Board will act as Plan Administrator or will appoint a Committee
                consistent with Applicable Laws to act as Administrator. If and so
                long as
                the Shares are registered under Section 12(b) or 12(g) of the Exchange
                Act, the Board will consider in selecting the membership of any Committee
                acting as Administrator the requirements regarding (1) “nonemployee
                directors” within the meaning of Rule 16b-3 under the Exchange Act;
                (2) “independent directors” as described in the listing requirements
                for any stock exchange on which Shares are listed; and (3) Section
                14.b.i.
                of the Plan if the Company pays salaries for which it claims on its
                U.S.
                tax returns deductions that are subject to the Code section 162(m)
                limitation.
                The Board will determine any Committee member’s term and may remove a
                Committee member at any time. 

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              b.

            	
              Powers
                of the Administrator.
                The Administrator will, to the maximum extent permitted by Applicable
                Laws
                and the Plan, have full and sole discretionary
                authority:

            

    

     

    
      	 	
              i.

            	
              to
                determine Fair Market Value;

            

    

     

    
      	 	
              ii.

            	
              to
                select the Service Providers to whom Awards may be
                granted;

            

    

     

    
      	 	
              iii.

            	
              to
                determine the number of Shares to be covered by each Award;
                

            

    

     

    
      	 	
              iv.

            	
              to
                approve forms of agreement for use under the
                Plan;

            

    

     

    
      	 	
              v.

            	
              to
                determine the terms and conditions of each Award, including without
                limitation, the exercise price, amount, the exercise period, vesting
                conditions, any vesting acceleration, any waiver of forfeiture
                restrictions, and any other restriction, condition, or limitation
                regarding any Award or its related Shares;

            

    

     

    
      	 	
              vi.

            	
              to
                construe and interpret the terms of the Plan and Awards and resolve
                any
                disputes regarding Plan and Award provisions;

            

    

     

    
      	 	
              vii.

            	
              to
                prescribe, amend and rescind rules and regulations relating to the
                Plan;
                

            

    

     

    
      	 	
              viii.

            	
              to
                modify or amend each Award;

            

    

     

    
      	 	
              ix.

            	
              to
                allow Participants to satisfy withholding tax obligations as permitted
                by
                Section 13;

            

    

     

    
      	 	
              x.

            	
              to
                authorize any person to execute instruments to effectuate an
                Award;

            

    

     

    
      	 	
              xi.

            	
              to
                delay issuance of Shares or suspend a Participant’s right to exercise an
                Award to comply with Applicable Laws; and

            

    

     

    
      	 	
              xii.

            	
              to
                determine any issues necessary or advisable for administering the
                Plan.
                

            

    

     

    
      	 	
              c.

            	
              Effect
                of Administrator’s Decision.
                Any act or decision of the Administrator will be binding and conclusive
                on
                the Company, all Participants, anyone holding an Award, and any person
                claiming under or through any Participant.

            

    

     

    
      	
              4.

            	
              Eligibility.
                ISOs may be granted only to Employees who are subject to U.S. tax.
                NSOs,
                Restricted Stock, RSUs, SARs, and Other Share-Based Awards may be
                granted
                to Service Providers; provided that NSOs and SARs may not be granted
                to
                Service Providers of a any Parent if the Service Provider is subject
                to
                U.S. tax. Service Providers include prospective employees or consultants
                to whom Awards are granted in connection with written offers of employment
                or engagement of services, respectively, with the Company; provided
                that
                no Award granted to a prospective employee or consultant may be exercised
                or purchased prior to the commencement of employment or services
                with the
                Company. 

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              5.

            	
              Stock
                Options.

            

    

     

    
      	 	
              a.

            	
              Grant
                of Options.
                The Administrator may grant Options in such amounts as it will determine
                from time to time. The Administrator may grant NSOs, ISOs, or any
                combination of the two. ISOs will be granted in accordance with Section
                14.a.
                of the Plan. NSOs and SARs granted to U.S. taxpayers will be granted
                in
                accordance with Section 14.c.
                of the Plan.

            

    

     

    
      	 	
              b.

            	
              Option
                Award Agreement.
                Each Option will be evidenced by an Award Agreement that will specify
                the
                type of Option granted, the exercise price, the number of Shares
                to which
                the Option pertains, vesting conditions, the exercise period, restrictions
                on transferability, and any other terms and conditions specified
                by the
                Administrator (which need not be identical among Participants). If
                the
                Award Agreement does not specify that the Option is to be treated
                as an
                ISO, the Option will be a NSO. 

            

    

     

    
      	 	
              c.

            	
              Exercise
                Price.
                The exercise price per share with respect to each Option will be
                determined by the Administrator provided that the exercise price
                per share
                cannot be less than the Fair Market Value of a Share on the Grant
                Date.
                

            

    

     

    
      	 	
              d.

            	
              Exercisability.
                An Option may be exercised at such time as the Option vests. No Option
                will be exercisable after the expiration of ten (10) years from the
                Grant
                Date, provided that if an exercise would violate applicable securities
                laws, the Option will be exercisable no more than thirty (30) days
                after
                the exercise of the Option first would no longer violate applicable
                securities laws. Subject to the terms of the Plan, Options may be
                exercised at such times, and in such amount and subject to such
                restrictions as will be determined by the Administrator, in its
                discretion. 

            

    

     

    
      	 	
              e.

            	
              Vesting
                Conditions.
                The Administrator may impose any conditions on the vesting of an
                Option
                including, but not limited to the achievement of Company-wide, business
                unit, and individual goals (including, but not limited to continued
                employment or service).

            

    

     

    
      	 	
              f.

            	
              Modification
                of Option Awards.
                The Administrator may accelerate the exercisability of any Option
                or a
                portion of any Option. The Administrator may extend the period for
                exercise generally provided the exercise period is not extended beyond
                the
                earlier of the original term of the Option or ten (10) years from
                the
                original Grant Date.

            

    

     

    
      	 	
              g.

            	
              Exercise
                of Option.
                An Option is exercised when the Company receives: (1) notice of
                exercise (in such form as the Administrator will specify from time
                to
                time) from the person entitled to exercise the Option, and (2) full
                payment for the Shares with respect to which the Option is exercised
                (together with all applicable withholding taxes). An Option may not
                be
                exercised for a fraction of a Share. Full payment may consist of
                any
                consideration and method of payment authorized by the Administrator
                and
                permitted by the Award Agreement and the Plan (together with all
                applicable withholding taxes). Such
                consideration may consist entirely of:

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	 	
              i.

            	
              cash;

            

    

     

    
      	 	
              ii.

            	
              check;
                

            

    

     

    
      	 	
              iii.

            	
              to
                the extent not prohibited by Section 402 of the Sarbanes-Oxley Act
                of
                2002, a promissory note; 

            

    

     

    
      	 	
              iv.

            	
              other
                Shares, provided the Shares have a Fair Market Value on the date
                of
                exercise of the Option equal to the aggregate exercise price for
                the
                Shares being purchased; 

            

    

     

    
      	 	
              v.

            	
              to
                the extent not prohibited by Section 402 of the Sarbanes-Oxley Act
                of
                2002, in
                accordance with any broker-assisted cashless exercise procedures
                approved
                by the Company and as in effect from time to
                time;

            

    

     

    
      	 	
              vi.

            	
              by
                requesting
                the Company to withhold such number of Shares then issuable upon
                exercise
                of the Option that have an aggregate Fair Market Value equal to the
                exercise price for the Option being exercised;

            

    

     

    
      	 	
              vii.

            	
              any
                combination of the foregoing; or 

            

    

     

    
      	 	
              viii.

            	
              such
                other consideration and method of payment for the issuance of Shares
                to
                the extent permitted by Applicable
                Laws.

            

    

     

    
      	 	
              h.

            	
              Shares
                Issued Upon Exercise.
                The Company will issue (or cause to be issued) Shares promptly after
                the
                Option is exercised. Shares issued upon exercise of an Option will
                be
                issued in the name of the Optionee or, if requested by the Optionee,
                in
                the name of the Optionee and his or her spouse. Until the Shares
                are
                issued (as evidenced by the appropriate entry on the books of the
                Company
                or of a duly authorized transfer agent of the Company), no right
                to vote
                or receive dividends or any other rights as a stockholder will exist
                with
                respect to the Shares, notwithstanding the exercise of the Option.
                No
                adjustment will be made for a dividend or other right for which the
                record
                date is prior to the date the Shares are issued, except as provided
                in
                Section 12.

            

    

     

    
      	 	
              i.

            	
              Forfeiture
                of Options.
                All unexercised Options will be forfeited to the Company in accordance
                with the terms and conditions set forth in the Award Agreement and
                again
                will become available for grant under the Plan.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
              6.

            	
              Stock
                Appreciation Rights.

            

    

     

    
      	 	
              a.

            	
              Grant
                of SARs.
                The Administrator may grant SARs in such amounts as it will determine
                from
                time to time.

            

    

     

    
      	 	
              b.

            	
              SAR
                Award Agreement.
                Each SAR will be evidenced by an Award Agreement that will specify
                the
                exercise price, the number of Shares underlying the SAR grant, vesting
                conditions, the exercise period, restrictions on transferability,
                and such
                other terms and conditions specified by the Administrator (which
                need not
                be identical among Participants). 

            

    

     

    
      	 	
              c.

            	
              Exercise
                Price.
                The exercise price per share with respect to each SAR will be determined
                by the Administrator provided that the exercise price per share cannot
                be
                less than the Fair Market Value of a Share on the Grant Date.
                

            

    

     

    
      	 	
              d.

            	
              Exercisability.
                A
                SAR may be exercised at such time as the SAR vests. No SAR will be
                exercisable after the expiration of ten (10) years from the Grant
                Date,
                provided that if an exercise would violate applicable securities
                laws, the
                SAR will be exercisable no more than thirty (30) days after the exercise
                of the SAR first would no longer violate applicable securities laws.
                Subject to the terms of the Plan, SARs may be exercised at such times,
                and
                in such amount and subject to such restrictions as will be determined
                by
                the Administrator, in its discretion.

            

    

     

    
      	 	
              e.

            	
              Vesting
                Conditions.
                The Administrator may impose any conditions on the vesting of a SAR
                including, but not limited to the achievement of Company-wide, business
                unit, and individual goals (including, but not limited to continued
                employment or service).

            

    

     

    
      	 	
              f.

            	
              Modification
                of SAR Awards.
                The Administrator may accelerate the exercisability of any SAR or
                a
                portion of any SAR. The Administrator may extend the period for exercise
                generally provided the exercise period is not extended beyond the
                earlier
                of the original term of the SAR or 10 years from the original Grant
                Date.
                

            

    

     

    
      	 	
              g.

            	
              Exercise
                of SAR.
                Upon exercise of a vested SAR, a Participant will be entitled to
                receive
                payment from the Company in an amount no greater than (1) the
                difference between the Fair Market Value of a Share on the date of
                exercise over the exercise price; times (2) the number of Shares with
                respect to which the SAR is exercised. Payment may consist of cash,
                Shares
                of equivalent value, or a combination thereof.

            

    

     

    
      	 	
              i.

            	
              If
                paid in Shares, the Company will issue (or cause to be issued) Shares
                promptly after the SAR is exercised. Until the Shares are issued
                (as
                evidenced by the appropriate entry on the books of the Company or
                of a
                duly authorized transfer agent of the Company), no right to vote
                or
                receive dividends or any other rights as a stockholder will exist
                with
                respect to the Shares, notwithstanding the exercise of the SAR. No
                adjustment will be made for a dividend or other right for which the
                record
                date is prior to the date the Shares are issued, except as provided
                in
                Section 12.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	 	
              ii.

            	
              If
                paid in cash, the Company will pay the participant promptly after
                the SAR
                is exercised but in no event later than the 15th day of the third
                month
                following the end of the year in which the SAR is exercised.
                

            

    

     

    
      	 	
              h.

            	
              Forfeiture
                of SARs.
                All unexercised SARs will be forfeited to the Company in accordance
                with
                the terms and conditions set forth in the Award Agreement and again
                will
                become available for grant under the
                Plan.

            

    

     

    
      	
              7.

            	
              Restricted
                Stock and Restricted Stock
                Units.

            

    

     

    
      	 	
              a.

            	
              Grant.
                The Administrator may grant Restricted Stock or RSUs in such amounts
                and
                form as it will determine from time to time.

            

    

     

    
      	 	
              b.

            	
              Award
                Agreement.
                Each Award of Restricted Stock or RSUs will be evidenced by an Award
                Agreement that will specify the number and form, vesting conditions,
                the
                Period of Restriction, purchase price (if any), method of payment,
                restrictions on transferability, repurchase rights, and such other
                terms
                and conditions specified by the Administrator (which need not be
                identical
                among Participants). 

            

    

     

    
      	 	
              c.

            	
              Vesting
                Conditions.
                The Administrator may impose vesting conditions on awards of Restricted
                Stock or RSUs including, but not limited to the achievement of
                Company-wide, business unit, and individual goals (including, but
                not
                limited to continued employment or service). Unless the Administrator
                determines otherwise, Restricted Stock will be held in escrow by
                the
                Company until the restrictions on such Shares have lapsed.
                

            

    

     

    
      	 	
              d.

            	
              Modification
                of Restricted Stock or RSUs.
                The Administrator may accelerate or waive the time at which vesting
                conditions and other restrictions lapse and provide for a complete
                or
                partial exception to an employment or service restriction.
                

            

    

     

    
      	 	
              e.

            	
              Rights
                During the Restriction Period.
                During the Period of Restriction, Service Providers who have been
                granted
                Restricted Stock may exercise full voting rights and will be entitled
                to
                receive all dividends and other distributions paid with respect to
                those
                Shares, unless the Administrator determines otherwise. Any such dividends
                or distributions paid in Shares will be subject to the same restrictions
                on transferability and forfeitability as the Restricted Stock with
                respect
                to which they were paid. Restricted Stock and RSUs may not be sold,
                transferred, pledged, assigned, or otherwise alienated or hypothecated
                until the end of the applicable Period of Restriction. 

            

    

     

    
      	 	
              f.

            	
              Removal
                of Restrictions.
                All restrictions imposed on Restricted Stock and RSUs will lapse
                and the
                Period of Restriction will end upon the satisfaction of the vesting
                conditions imposed by the Administrator at which time:
                

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	 	
              i.

            	
              vested
                Restricted Stock, if held in escrow, will be released from escrow
                as soon
                as practicable after the last day of the Period of Restriction or
                at such
                other time as the Administrator may determine, but in no event later
                than
                the 15th
                day of the third month following the end of the year in which vesting
                occurred, or

            

    

     

    
      	 	
              ii.

            	
              vested
                RSUs will be paid in Shares at the time provided for in the Award
                Agreement, but in no event later than the 15th
                day of the third month following the end of the year in which vesting
                occurred.

            

    

     

    
      	 	
              g.

            	
              Forfeiture.
                All unvested Restricted Stock and RSUs for which restrictions have
                not
                lapsed will be forfeited to the Company on the date set forth in
                the Award
                Agreement. Forfeited Restricted Stock will revert to the Company
                and will
                not be available for grant under the Plan. Forfeited RSUs will become
                available for grant under the Plan.

            

    

     

    
      	
              8.

            	
              Other
                Share-Based Awards. The Administrator may grant Other Share-Based
                Awards that are payable in, valued in whole or in part by reference
                to, or
                otherwise based on or related to Shares as may be deemed by the
                Administrator to be consistent with the purposes of the Plan. Other
                Share-Based Awards may include, without limitation, (a) Shares
                awarded purely as a bonus and not subject to any restrictions or
                conditions, (b) grants in lieu of cash compensation, (c) other
                rights convertible or exchangeable into Shares, and (d) awards valued
                by reference to the value of Shares or the value of securities of
                or the
                performance of specified Subsidiaries. The Administrator will have
                the
                authority to determine the time or times at which Other Share-Based
                Awards
                will be granted, the number of Shares or stock units and the like
                to be
                granted or covered pursuant to an Award, and all other terms and
                conditions of an Award, including, but not limited to, the vesting
                period
                (if any), purchase price (if any), and whether such Awards will be
                payable
                or paid in cash, Shares or otherwise. Each Other Share-Based Award
                will be
                evidenced by an Award Agreement.

            

    

     

    
      	
              9.

            	
              Cash
                Settlement. The Administrator, in its sole discretion, may choose to
                settle any Award, in whole or in part, granted under the Plan in
                cash in
                lieu of Shares. The value of such Award on the date of distribution
                will
                be determined in the same manner as the Fair Market Value of Shares
                on the
                Grant Date of an Option.

            

    

     

    
      	
              10.

            	
              Leaves
                of Absence/Transfer Between Locations. Unless the Administrator
                provides otherwise or as required by Applicable Laws, an Employee
                will not
                cease to be an Employee in the case of (a) any leave of absence approved
                by the Employer or (b) transfers between locations of the Employer
                or
                between the Company, its Parent, or any Subsidiary, but vesting of
                Awards
                will be suspended during any unpaid leave of absence.
                

            

    

     

    
      	
              11.

            	
              Transferability
                of Awards. An Award may not be sold, pledged, assigned, hypothecated,
                transferred, or disposed of in any manner other than by will or by
                the
                laws of descent or distribution and Options and SARs may be exercised,
                during the lifetime of the Participant, only by the Participant or
                the
                Participant’s legal representative.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
              12.

            	
              Adjustments;
                Dissolution or Liquidation; Merger or Change in Control. 

            

    

     

    
      	 	
              a.

            	
              Adjustments.
                In the event of a reorganization, recapitalization, stock split,
                stock
                dividend, extraordinary cash dividend, combination of shares, merger,
                consolidation, rights offering, spin off, split off, split up or
                other
                event identified by the Committee, the Committee will equitably adjust
                (i) the number and kind of shares authorized for issuance under the
                Plan, (ii) the number and kind of shares subject to outstanding
                Awards, and (iii) the exercise price of Options and SARs.
                

            

    

     

    
      	 	
              b.

            	
              Dissolution
                or Liquidation.
                In the event of the dissolution or liquidation of the Company, the
                Administrator will notify each Participant as soon as practicable
                prior to
                the effective date of such transaction. To the extent it has not
                been
                previously exercised, an Award will terminate immediately prior to
                the
                dissolution or liquidation.

            

    

     

    
      	 	
              c.

            	
              Change
                in Control.
                In the event of a merger or Change in Control, the surviving or successor
                entity may either assume the Company’s rights and obligations with respect
                to outstanding Awards or substitute outstanding Awards for substantially
                equivalent property (including, but not limited to comparable equity
                interests in the surviving or successor entity) that are subject
                to
                vesting requirements and repurchase restrictions no less favorable
                to the
                Participant than those in effect prior to the merger or Change in
                Control. 

            

    

     

    In
      the
      event that the successor corporation does not assume or substitute Outstanding
      Awards, the Participant will fully vest in all Awards, all performance goals
      and
      vesting criteria will be deemed to have been achieved at target levels, and
      all
      restrictions will lapse. Any Option or SAR that is not assumed or substituted
      in
      the event of a Change in Control, will be exercisable for a period of time
      determined by the Administrator in its sole discretion. The Administrator will
      provide reasonable notice of such exercise period to the Participant, and the
      Option or SAR will terminate upon the expiration of such exercise
      period.

     

    For
      the
      purposes of this Section 12.c.,
      an
      Award will be considered assumed if, following the Change in Control, the Award
      confers a right for each Share or Share equivalent subject to the Award to
      purchase or receive the consideration (or for an Award payable in cash, the
      fair
      market value of the consideration) received for each Share on the date of the
      transaction. If holders were offered a choice of consideration, the type of
      consideration chosen by the holders of a majority of the outstanding Shares
      will
      be used. If the consideration received in the Change in Control is not solely
      common stock of the successor corporation or its Parent, the Administrator
      may,
      with the consent of the successor corporation pay the Award in the form of
      common stock of the successor corporation or its Parent equal in fair market
      value to the per share consideration received by holders of Shares in the Change
      in Control.

     

    Notwithstanding
      anything in this Section 12.c.
      to the
      contrary, an Award that vests, is earned or paid-out upon the satisfaction
      of
      one or more performance goals will not be considered assumed if the Company
      or
      its successor, without the Participant’s consent, modifies any performance goals
      except a modification made solely to reflect the successor entity's post-Change
      in Control corporate structure (or similar entity level structure if the
      successor entity is not a corporation).

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
              13.

            	
              Tax
                Withholding.

            

    

     

    
      	 	
              a.

            	
              Withholding
                Requirements.
                Prior to the delivery of any Shares or cash pursuant to an Award
                (or
                exercise thereof), the Company will have the power and the right
                to deduct
                or withhold, or require a Participant to remit to the Company, an
                amount
                sufficient to satisfy federal, state, local, foreign or other taxes
                required by Applicable Laws to be withheld with respect to such Award
                (or
                exercise thereof).

            

    

     

    
      	 	
              b.

            	
              Withholding
                Arrangements.
                The Administrator may permit a Participant to satisfy tax withholding
                obligations, in whole or in part and without limitation by (i) paying
                cash, (ii) electing to have the Company withhold otherwise deliverable
                Shares having a Fair Market Value (as of the date that the taxes
                should be
                withheld) equal to the withholding amount, or (iii) delivering to the
                Company already-owned Shares having a Fair Market Value (as of the
                date
                that the taxes should be withheld) equal to the withholding amount.
                

            

    

     

    
      	
              14.

            	
              Provisions
                Applicable In the Event the Company or the Service Provider is Subject
                to
                U.S. Taxation.

            

    

     

    
      	 	
              a.

            	
              Grant
                of Incentive Stock Options.
                If the Administrator grants Options to Employees that may be subject
                to
                U.S. taxation, the Administrator may grant such Employee an ISO.
                Section
                5
                of
                this Plan and the following terms apply to all grants that are intended
                to
                qualify as ISO Awards:

            

    

     

    
      	 	
              i.

            	
              Maximum
                Amount.
                Subject to adjustment as provided in Section 12,
                to the extent consistent with Code section 422, not more than an
                aggregate
                of three and a half million (3,500,000) Shares may be issued pursuant
                to
                the exercise of ISOs granted under the
                Plan.

            

    

     

    
      	 	
              ii.

            	
              Eligibility.
                Only Employees of the Company, a Parent or a Subsidiary will be eligible
                for the grant of ISOs. 

            

    

     

    
      	 	
              iii.

            	
              Continuous
                Employment.
                The Optionee must remain in the continuous employ of the Company,
                any
                Parent, or any Subsidiary from the ISO Grant Date to the date that
                is
                three months prior to exercise. Service will be treated as continuous
                during a leave of absence approved by the Employer that does not
                exceed
                three (3) months. A leave of absence approved by the Employer may
                exceed
                three (3) months if reemployment upon expiration of such leave is
                guaranteed by statute or contract. An Option exercised more than
                three
                months after termination of employment will be treated as a NSO.
                

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	 	
              iv.

            	
              Award
                Agreement.
                

            

    

     

    
      	 	
              (1)

            	
              The
                Administrator will designate Options granted as ISOs in the Award
                Agreement. 

            

    

     

    
      	 	
              (2)

            	
              The
                Award Agreement will specify the term of the ISO. The term will not
                exceed
                ten (10) years from the Grant Date or five (5) years from the Grant
                Date
                for Ten Percent Owners. 

            

    

     

    
      	 	
              (3)

            	
              The
                Award Agreement will specify an exercise price of not less than the
                Fair
                Market Value per Share on the Grant Date or one hundred ten percent
                (110%)
                of the Fair Market Value per Share on the Grant Date for Ten Percent
                Owners.

            

    

     

    
      	 	
              (4)

            	
              The
                Award Agreement will specify that an ISO is not transferable except
                by
                will, beneficiary designation or the laws of descent and distribution.
                

            

    

     

    
      	 	
              v.

            	
              Limitation
                on ISOs.
                To the extent that the aggregate Fair Market Value of the Shares
                with
                respect to which ISOs are exercisable for the first time by the Optionee
                during any calendar year (under all plans of the Company and any
                Parent or
                any Subsidiary) exceeds one hundred thousand dollars ($100,000),
                Options
                will not qualify as ISOs and will be treated as NSOs. For purposes
                of this
                section, ISOs will be taken into account in the order in which they
                were
                granted. The Fair Market Value of the Shares will be determined as
                of the
                Grant Date.

            

    

     

    
      	 	
              vi.

            	
              Notice
                Required Upon Disqualifying Dispositions.
                The Optionee must notify the Company in writing within thirty (30)
                days
                after any disposition of Shares acquired pursuant to the exercise
                of an
                ISO within two years from the Grant Date or one year from the exercise
                date. The Optionee must also provide the Company with all information
                that
                the Company reasonably requests in connection with determining the
                amount
                and character of Optionee’s income, the Company’s deduction, and the
                Company’s obligation to withhold taxes or other amounts incurred by reason
                of a disqualifying disposition. 

            

    

     

    
      	 	
              b.

            	
              Performance-Based
                Compensation.
                The Administrator may impose the following conditions on any Award
                under
                this Plan to any Service Provider that may be subject to U.S. taxation
                on
                the Award: 

            

    

     

    
      	 	
              i.

            	
              Outside
                Directors.
                Awards that the Administrator intends to qualify as “performance-based
                compensation” must be (1) granted by a committee of the Board comprised
                solely of two or more “outside directors” within the meaning of Code
                section 162(m) and (2) administered in a manner that will enable
                such
                Awards to qualify as “performance-based compensation” within the meaning
                of Code section 162(m).

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	 	
              ii.

            	
              Maximum
                Amount.
                In any calendar year, no eligible Employee may receive (1) with
                respect to Awards denominated in Shares, Awards covering more than
                five
                hundred thousand (500,000) Shares (adjusted in accordance with
                Section 12),
                or (2) with respect to Awards denominated in cash, Awards with a Fair
                Market Value exceeding that of five hundred thousand (500,000) Shares
                determined as of the Grant Date.

            

    

     

    
      	 	
              iii.

            	
              Performance
                Criteria.
                The performance goal applicable to any Award (other than an Option
                or SAR)
                that is intended to qualify as performance-based compensation must
                be
                established in writing prior to the beginning of the Performance
                Period or
                at a later time as permitted by Code section 162(m) and may be based
                on
                any one or more of the following performance measures that apply
                to the
                individual, a business unit, or the Company as a whole:
                

            

    

     

    
      	 	
              (1)

            	
              increased
                revenue;

            

    

     

    
      	 	
              (2)

            	
              net
                income measures (including but not limited to income after capital
                costs
                and income before or after taxes);

            

    

     

    
      	 	
              (3)

            	
              stock
                price measures (including but not limited to growth measures and
                total
                stockholder return);

            

    

     

    
      	 	
              (4)

            	
              market
                share;

            

    

     

    
      	 	
              (5)

            	
              earnings
                per Share (actual or targeted
                growth);

            

    

     

    
      	 	
              (6)

            	
              earnings
                before interest, taxes, depreciation, and amortization
                (“EBITDA”);

            

    

     

    
      	 	
              (7)

            	
              cash
                flow measures (including but not limited to net cash flow and net
                cash
                flow before financing activities);

            

    

     

    
      	 	
              (8)

            	
              return
                measures (including but not limited to return on equity, return on
                average
                assets, return on capital, risk-adjusted return on capital, return
                on
                investors’ capital and return on average
                equity);

            

    

     

    
      	 	
              (9)

            	
              operating
                measures (including operating income, funds from operations, cash
                from
                operations, after-tax operating income, sales volumes, production
                volumes,
                and production efficiency);

            

    

     

    
      	 	
              (10)

            	
              expense
                measures (including but not limited to overhead cost and general
                and
                administrative expense);

            

    

     

    
      	 	
              (11)

            	
              margins;

            

    

     

    
      	 	
              (12)

            	
              stockholder
                value;

            

    

     

    
      	 	
              (13)

            	
              total
                stockholder return;

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	 	
              (14)

            	
              proceeds
                from dispositions;

            

    

     

    
      	 	
              (15)

            	
              production
                volumes;

            

    

     

    
      	 	
              (16)

            	
              total
                market value; and

            

    

     

    
      	 	
              (17)

            	
              corporate
                values measures (including but not limited to ethics compliance,
                environmental, and safety).

            

    

     

    
      	 	
              iv.

            	
              The
                terms of the performance goal applicable to any Award that is intended
                to
                qualify as performance-based compensation must preclude discretion
                to
                increase the amount of compensation that would otherwise be due upon
                attainment of the goal. 

            

    

     

    
      	 	
              v.

            	
              Following
                the completion of the Performance Period, the outside directors described
                in Section 14.b.i.
                above must certify in writing whether the applicable performance
                goals
                have been achieved for such Performance Period. In determining the
                amount
                earned, the Administrator will have the right to reduce (but not
                increase)
                the amount payable at a given level of performance to take into account
                additional factors that the Administrator may deem relevant to the
                assessment of individual or corporate performance for the Performance
                Period. 

            

    

     

    
      	 	
              c.

            	
              Stock
                Options and SARs Exempt from Code section 409A.
                Section 5
                of
                this Plan and the following terms apply to all grants of NSOs and
                SARs to
                Service Providers that are subject to U.S. taxation.
                

            

    

     

    
      	 	
              i.

            	
              Eligibility.
                Only Service Providers of the Company or a Related Entity will be
                eligible
                for the grant of NSOs or SARs intended to be exempt from Code section
                409A. 

            

    

     

    
      	 	
              ii.

            	
              Administration.
                

            

    

     

    
      	 	
              (1)

            	
              The
                Administrator may not modify or amend the Options or SARs to the
                extent
                that the modification or amendment adds a feature allowing for additional
                deferral within the meaning of Code section 409A,
                and

            

    

     

    
      	 	
              (2)

            	
              any
                adjustment pursuant to Section 12
                will be done in a manner consistent with Code section 409A and Treasury
                Regulations section 1.409A-1 et
                seq.

            

    

     

    
      	 	
              (3)

            	
              The
                Company intends that no payments under this Plan will be subject
                to the
                tax imposed by Code section 409A. The Administrator will
                interpret
                and administer the Plan in a manner that avoids the imposition of
                any
                increase in tax under Code section 409A(a)(1)(B),
                and any ambiguities herein will be interpreted to satisfy the requirements
                of Code section 409A or any exemption thereto. 

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
              15.

            	
              No
                Effect on Employment or Service. Neither the Plan nor any Award will
                confer upon any Participant any right with respect to continuing
                the
                Participant’s relationship as a Service Provider with the Company, any
                Parent or any Subsidiary, nor will either interfere in any way with
                the
                Participant’s right or the Company’s or its Parent’s or Subsidiary’s right
                to terminate such relationship at any time, with or without cause,
                to the
                extent permitted by Applicable
                Laws.

            

    

     

    
      	
              16.

            	
              Effective
                Date. The Plan’s effective date is the date on which it is adopted by
                the Board, so long as it is approved by the Company’s stockholders at any
                time within 12 months of such adoption. Upon approval of the Plan
                by the
                stockholders of the Company, all Awards issued pursuant to the Plan
                on or
                after the Effective Date will be fully effective as if the stockholders
                of
                the Company had approved the Plan on the Effective Date. If the
                stockholders fail to approve the Plan within one year before or after
                the
                Effective Date, any Awards granted hereunder will be null and void
                and of
                no effect. 

            

    

     

    
      	
              17.

            	
              Term
                of Plan. The Plan will terminate 10 years following the earlier of
                (i) the date it was adopted by the Board or (ii) the date it
                became effective upon approval by stockholders of the Company, unless
                sooner terminated by the Board pursuant to Section 18.
                

            

    

     

    
      	
              18.

            	
              Amendment
                and Termination of the Plan.

            

    

     

    
      	 	
              a.

            	
              Amendment
                and Termination.
                The Board may at any time amend, alter, suspend or terminate the
                Plan.

            

    

     

    
      	 	
              b.

            	
              Stockholder
                Approval.
                The Company will obtain stockholder approval of any Plan amendment
                to the
                extent necessary and desirable to comply with Applicable
                Laws.

            

    

     

    
      	 	
              c.

            	
              Effect
                of Amendment or Termination.
                No amendment, alteration, suspension or termination of the Plan will
                impair the rights of any Participant, unless mutually agreed otherwise
                between the Participant and the Administrator, which agreement must
                be in
                writing and signed by the Participant and the Company. Termination
                of the
                Plan will not affect the Administrator's ability to exercise its
                powers
                with respect to Awards granted under the Plan prior to the Plan
                termination date.

            

    

     

    
      	
              19.

            	
              Conditions
                Upon Issuance of Shares.

            

    

     

    
      	 	
              a.

            	
              Legal
                Compliance.
                The Administrator may delay or suspend the issuance and delivery
                of
                Shares, suspend the exercise of Options or SARs, or suspend the Plan
                as
                necessary to comply with Applicable Laws. Shares will not be issued
                pursuant to the exercise of an Award unless the exercise of such
                Award and
                the issuance and delivery of such Shares will comply with Applicable
                Laws
                and will be further subject to the approval of counsel for the Company
                with respect to such compliance.

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	 	
              b.

            	
              Investment
                Representations.
                The Company may require any person exercising or purchasing an Award
                to
                represent and warrant that the Shares are being purchased only for
                investment and without any present intention to sell or distribute
                such
                Shares.

            

    

     

    
      	
              20.

            	
              Inability
                to Obtain Authority. If the Company is unable to obtain required
                authority from any regulatory body in order to lawfully issue or
                sell
                Shares pursuant to this Plan, all rights with respect to such Shares
                will
                be void and the Company will have no liability with respect to the
                failure
                to issue or sell such Shares.

            

    

     

    
      	
              21.

            	
              Repricing
                Prohibited; Exchange and Buyout of Awards. The repricing of Options or
                SARs is prohibited without prior stockholder approval. The Administrator
                may authorize the Company, with prior stockholder approval and the
                consent
                of the respective Participants, to issue new Option or SAR Awards
                in
                exchange for the surrender and cancellation of any or all outstanding
                Awards. The Administrator may repurchase Options with payment in
                cash,
                Shares or other consideration at any time pursuant to terms that
                are
                mutually agreeable to the Company and the Participant..
                

            

    

     

    
      	
              22.

            	
              Governing
                Law. The Plan, any Award Agreement, and documents evidencing Awards
                or
                rights relating to Awards will be construed, administered, and governed
                in
                all respects under and by the laws of the State of Nevada, without
                giving
                effect to its conflicts or choice of law principles.
                

            

    

     

    
      	
              23.

            	
              Definitions.
                The following definitions apply to capitalized terms in the
                Plan:

            

    

     

    “Administrator”
means
      the Board or Committee that administers the Plan pursuant to Section
3.

    

    “Applicable
      Laws”
means
      the requirements relating to the administration of equity-based awards under
      U.S. state corporate laws, U.S. federal and state securities laws, the Code,
      any
      stock exchange or quotation system on which the Shares are listed or quoted
      and
      the applicable laws of any foreign country or jurisdiction where Awards are,
      or
      will be, granted under the Plan.

    

    “Award”
means
      an Option, a SAR, a share of Restricted Stock, a RSU, or an Other Share-Based
      Award granted pursuant to the terms of the Plan. 

    

    “Award
      Agreement”
means
      the written agreement governing Plan Awards. The Award Agreement is subject
      to
      the terms and conditions of the Plan.

    

    “Board”
means
      the Board of Directors of the Company.

    

    “Change
      in Control”
means
      the occurrence of any of the following events:

    

    (i) Any
      “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
      who becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange
      Act), directly or indirectly, of securities of the Company representing fifty
      percent (50%) or more of the total voting power represented by the Company's
      then outstanding voting securities except an acquisition of securities directly
      from the Company; or

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    (ii) The
      consummation of the sale or disposition by the Company of all or substantially
      all of the Company's assets;

    

    (iii) A
      change
      in the composition of the Board occurring within a two-year period that results
      in a Board where the majority of the Directors (1) were elected or nominated
      in
      connection with an actual or threatened proxy contest involving Director
      elections, (2) were not Directors as of the effective date of the Plan, or
      (3)
      were not elected, or nominated for election, to the Board with the affirmative
      votes of a majority of the Directors who, at the time of the election or
      nomination were either Directors as of the effective date of the Plan or
      Directors elected or nominated as herein described; or a combination of the
      three; or

    

    (iv) The
      consummation of a merger or consolidation of the Company with any other entity,
      unless the voting securities of the Company immediately prior to the merger
      or
      consolidation remain outstanding or are converted into voting securities of
      the
      surviving entity or parent so that they continue to represent at least fifty
      percent (50%) of the total voting power represented by the voting securities
      of
      the surviving entity (or parent) outstanding immediately after such merger
      or
      consolidation.

    

    “Code”
means
      the Internal Revenue Code of 1986, as amended. Any reference in the Plan to
      a
      section of the Code will be a reference to any successor or amended section
      of
      the Code.

    

    “Committee”
means
      the Compensation Committee, if any, or such similar or successor Committee
      appointed by the Board. If the Board has not appointed a Committee, the Board
      will function in the place of the Committee.

    

    “Company”
means
      Wonder Auto Technology, Inc., a Nevada corporation, or its
      successor.

    

    “Consultant”
means
      any person, including an advisor, if: (1) the consultant or adviser is a natural
      person; (2) the consultant or adviser renders bona
      fide
      services
      to the Company or any Subsidiary; and (3) the services rendered by the
      consultant or adviser are not in connection with the offer or sale of securities
      in a capital-raising transaction and do not directly or indirectly promote
      or
      maintain a market for the Company’s securities. 

    

    “Director”
means
      a
      member of the Board.

    

    “Disability”
      generally means total and permanent disability as determined by the
      Administrator in its discretion in accordance with uniform and
      non-discriminatory standards adopted by the Administrator from time to time,
      but
“Disability,”
for
      purposes of an ISO, means total and permanent disability as defined in Code
      section 22(e)(3).

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    “Employee”
means
      any person, including Officers and Directors, who is a common law employee
      of
      the Company, a Parent, or a Subsidiary. For Options or SARs granted to U.S.
      taxpayers, Employee means any person, including Officers and Directors, who
      is a
      common law employee of the Company or any Related Entity. Neither service as
      a
      Director nor payment of a director’s fee by the Company will be sufficient to
      constitute “employment” by the Company.

    

    “Employer”
means
      the entity that employs the Employee. 

    

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

    

    “Fair
      Market Value”
means,
      as of any date, the value of Shares determined as follows:

    

    (i) If
      the
      Shares are listed on any established stock exchange or a national market system,
      including without limitation any division or subdivision of the NASDAQ Stock
      Market, its Fair Market Value will be the closing sales price for such stock
      (or
      the closing bid, if no sales were reported) as quoted on such exchange or system
      on the day of determination, as reported in The
      Wall Street Journal
      or such
      other source as the Administrator deems reliable; or

    

    (ii) If
      the
      Shares are regularly quoted by a recognized securities dealer but selling prices
      are not reported, including without limitation quotation through the
      Over-The-Counter Bulletin Board quotation service administered by the Financial
      Industry Regulatory Authority, the Fair Market Value of a Share will be the
      mean
      between the high bid and low asked prices for the Shares on the day of
      determination, as reported in The
      Wall Street Journal
      or such
      other source as the Administrator deems reliable; or

    

    (iii) In
      the
      absence of an established market for the Shares, the Fair Market Value will
      be
      determined in good faith by the Administrator, and to the extent Section
14
      applies
      (a) with respect to ISOs, the Fair Market Value will be determined in a manner
      consistent with Code section 422 or (b) with respect to NSOs or SARs, the Fair
      Market Value will be determined in a manner consistent with Code section 409A.
      

    

    “Fiscal
      Year”
means
      the fiscal year of the Company.

    

    “Grant
      Date”
means
      the date on which the Administrator grants an Award, or such other later date
      as
      is determined by the Administrator, provided that the Administrator cannot
      grant
      an Award prior to the date the material terms of the Award are established.
      The
      Administrator may not grant an Award with a Grant Date that is effective prior
      to the date the Administrator takes action to approve such Award.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    “Incentive
      Stock Option”
or
      “ISO”
means
      an Option intended to qualify as an incentive stock option within the meaning
      of
      Code section 422 and its regulations.

    

    “Nonstatutory
      Stock Option”
or
      “NSO”
means
      an Option that by is not intended to qualify as an ISO.

    

    “Officer”
means
      a
      person who is an officer of the Company within the meaning of Section 16 of
      the
      Exchange Act and its rules and regulations.

    

    “Option”
means
      a
      stock option granted pursuant to the Plan.

    

    “Optionee”
means
      the holder of an Option granted pursuant to the Plan.

    

    “Other
      Share-Based Awards”
will
      mean awards of Shares or other rights in accordance with Section 8.
      

    

    “Parent”
means
      a
“parent corporation” as defined in Code section 424(e).

    

    “Participant”
means
      the holder of an Award granted pursuant to the Plan.

    

    “Performance
      Period”
means
      one or more time periods, which may be of varying and overlapping durations,
      over which the attainment of the performance goals or other vesting conditions
      will be measured for the purpose of determining a Participant’s right to
      payment. 

    

    “Period
      of Restriction”
means
      the period during which Restricted Stock and RSUs are subject to forfeiture
      or
      restrictions on transfer pursuant to Section 7.

    

    “Plan”
means
      this 2008 Equity Incentive Plan.

    

    “Related
      Entity”
means
      the corporation or other entity, other than the Company, to which the Service
      Provider provides services on the Grant Date, and any corporation or other
      entity, other than the Company, in an unbroken chain of corporations or other
      entities beginning with the Company in which each corporation or other entity
      has a controlling interest in another corporation or other entity in the chain,
      and ending with the corporation or other entity that has a controlling interest
      in the corporation or other entity to which the Service Provider provides
      services on the Grant Date. For a corporation, a controlling interest means
      ownership of stock possessing at least fifty (50%) percent of total combined
      voting power of all classes of stock, or at least fifty (50%) percent of the
      total value of all classes of stock. For a partnership or limited liability
      company, a controlling interest means ownership of at least fifty (50%) percent
      of the profits interest or capital interest of the entity. In determining
      ownership, the rules of Treasury Regulation sections 1.414(c)-3 and 1.414(c)-4
      apply. 

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    “Restricted
      Stock”
means
      Shares awarded to a Participant that are subject to forfeiture and restrictions
      on transferability in accordance with Section 7.

    

    “Restricted
      Stock Unit”
or
      “RSU”
means
      the right to receive one Share at the end of a specified period of time that
      is
      subject to forfeiture in accordance with Section 7
      of the
      Plan.

    

    “Rule
      16b-3”
means
      Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3. 

    

    “Section
      16(b)”
means
      Section 16(b) of the Exchange Act.

    

    “Service
      Provider”
means
      an Employee, Director or Consultant.

    

    “Share”
means
      a
      share of Company common stock, as adjusted in accordance with Section
12.

    

    “Stock
      Appreciation Right”
or
      “SAR”
means
      the right to receive payment from the Company in an amount no greater than
      the
      excess of the Fair Market Value of a Share at the date the SAR is exercised
      over
      a specified price fixed by the Administrator in the Award Agreement that is
      not
      less than the Fair Market Value of a Share on the Grant Date. 

    

    “Subsidiary”
means
      a
“subsidiary corporation” as defined in Code section 424(f).

    

    “Ten
      Percent Owner”
means
      any Service Provider who is, on the Grant Date of an ISO, the owner of more
      than
      10% of the total combined voting power of all classes of stock of the Company,
      any Parent, or any Subsidiary (determined with application of ownership
      attribution rules of Code section 424(d)).

     

    Adopted
      by the Board of Directors on April 30, 2008

     

    
      
         

      

      
        18

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