Document:

EMPLOYMENT
      AGREEMENT

     

    This
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      entered into as of May 31, 2007 by and between Quest Group International, Inc.,
      a Nevada corporation, with its principal office at 11845 West Olympic Boulevard,
      No. 1125W, Los Angeles, California 90064 (the “Company”),
      and
      Harin Padma-Nathan (“Executive,”
      together with the Company, the “Parties”),
      with
      reference to the following facts:

     

    WHEREAS,
      Executive has experience and expertise applicable to employment with the Company
      to perform as the Chief Executive Officer of the Company, the Company has agreed
      to employ Executive and Executive has agreed to enter into such employment,
      on
      the terms set forth in this Agreement.

     

    WHEREAS,
      Executive acknowledges that this Agreement is necessary for the protection
      of
      the Company’s investment in its business, good will, products, patents,
      inventions, intellectual property, methods of operation, information, and
      relationships with its customers and other employees.

     

    WHEREAS,
      the Company desires to employ the Executive, and Executive desires to be
      employed by the Company pursuant to the terms hereof.

     

    NOW,
      THEREFORE, the Company and Executive desire to set forth in this Agreement
      the
      terms and conditions of the Executive's employment with the
      Company.

     

    ARTICLE
      I

     

    EMPLOYMENT;
      TERM; DUTIES

     

    1.1  Employment.
      Upon
      the terms and conditions hereinafter set forth, the Company hereby employs
      Executive, and Executive hereby accepts employment, to serve as Chief Executive
      Officer of the Company, commencing May 31, 2007 (the “Commencement
      Date”)
      and,
      subject to Section 4.2.1, ending five years thereafter (the
      foregoing period and the same as may be extended pursuant to Section 4.2 of
      this
      Agreement, hereinafter, the“Term”).
      

     

    1.2  Duties.
      Executive shall report to the Chairman of the Board of Directors of the Company
      (the “Board”),
      and
      will have the general powers, duties and responsibilities of management usually
      vested in that office in a corporation and such other powers and duties as
      may
      be prescribed from time to time by the Board.

     

    1.3  Standard
      of Performance.
      Executive agrees that he will at all times faithfully and industriously and
      to
      the best of his ability, experience and talents perform all of the duties that
      may be required of and from him pursuant to the terms of this Agreement. Such
      duties will be performed at such place or places as the interests, needs,
      business and opportunities of the Company will require or render advisable.
      

     

    1.4  Duty
      of Loyalty.
      During
      his employment with the Company, Executive shall not, directly or indirectly,
      either as an employee, employer, consultant, agent, investor, principal,
      partner, stockholder (except as the holder of less than 1% of the issued and
      outstanding stock of a publicly held corporation), corporate officer or
      director, or in any other individual or representative capacity, engage or
      participate in any business that is in competition in any manner whatsoever
      with
      the business of the Company. Subject to the foregoing prohibition and provided
      such services or investments do not violate any applicable law, regulation
      or
      order, or interfere in any way with the faithful and diligent performance by
      Executive of the services to the Company otherwise required or contemplated
      by
      this Agreement, the Company expressly acknowledges that Executive
      may:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)  make
      and
      manage personal business investments of Executive’s choice without consulting
      the Board; and

     

    (b)  serve
      in
      any capacity with any non-profit civic, educational or charitable organization
      without consulting with the Board.

     

    1.5  Covenants
      of Executive

     

    1.5.1  Reports.
      Executive shall use his best efforts and skills to truthfully, accurately,
      and
      promptly make, maintain, and preserve all records and reports that the Company
      may, from time to time, request or require, fully account for all money,
      records, equipment, materials, or other property belonging to the Company of
      which he may have custody, and promptly pay and deliver the same whenever he
      may
      be directed to do so by the Board.

     

    1.5.2  Rules
      and Regulations.
      Executive shall obey all rules, regulations and special instructions of the
      Company and all other rules, regulations, guides, handbooks, procedures,
      policies and special instructions applicable to the Company’s business in
      connection with his duties hereunder and shall endeavor to improve his ability
      and knowledge of the Company’s business in an effort to increase the value of
      his services for the mutual benefit of the Company and the
      Executive.

     

    1.5.3  Opportunities.
      Executive shall make all business opportunities of which he becomes aware that
      are relevant to the Company’s business available to the Company, and to no other
      person or entity or to himself individually.

     

    ARTICLE
      II

     

    COMPENSATION

     

    2.1  Base
      Salary.
      During
      the Term, for all services rendered by Executive hereunder and all covenants
      and
      conditions undertaken by both Parties pursuant to this Agreement, the Company
      shall pay, and Executive shall accept, as compensation, an annual base salary
      of
      $200,000 per year commencing the Commencement Date (the “Base
      Salary”),
      payable in accordance with the normal payroll practices of the Company. The
      Base
      Salary shall increase on November 30, 2007 by an amount to be determined by
      the
      Company and the Executive. The Base Salary shall thereafter increase on May
      31
      of each year during
      the Term, the amount of such increase to be determined in
      the
      Company’s sole discretion,
      but by no less than 5% per year. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.2  Performance
      and Review.
      Executive’s performance will be reviewed on no less than an annual basis.

     

    2.3  Discretionary
      Bonus.
      Executive is eligible to receive an annual bonus during his employment as
      determined by either the Board or a compensation committee appointed by the
      Board (the “Compensation
      Committee”).
      This
      bonus will be based on the following two factors, each of which shall be given
      equal weight in determining the bonus amount Executive will receive that
      year:

     

    (a)  The
      Company’s performance, based on the performance criteria established by either
      the Board or the Compensation Committee in its sole discretion; and

     

    (b)  The
      Executive’s job performance, based on the performance criteria established by
      mutual agreement of Executive and the Chairman of the Board, subject to review
      and approval by either the Board or the Compensation Committee. 

     

    2.4  Fringe
      Benefits.
      Executive and Executive’s family will be provided with group dental insurance
      through the Company’s plans. Dental benefits will commence on the first day of
      the month following the Commencement Date. In the event that no benefit plans
      are in place at that time, the Company will reimburse Executive for COBRA
      coverage until such time as Executive is covered under the Company’s group
      medical and dental plans. For purposes of this Section 2.4, family shall include
      Executive’ spouse and dependents under the age of 24 living in the same
      household as Executive. 

     

    2.5  Vacation
      and Sick Days.
      Executive shall be entitled to four (4) workweeks of paid time off
      (“PTO”)
      per
      year commencing with the Commencement Date, provided, however, that Executive’s
      accrued and unused PTO shall not exceed a total of five workweeks. This PTO
      will
      be in addition to normal Company holidays, which will be determined at the
      discretion of the Company from time to time. Thereafter, Executive will not
      continue to accrue PTO benefits until he has used enough PTO time to fall below
      this maximum amount. Any accrued but unused PTO will be paid to Executive,
      on a
      pro rata basis, at the time that his employment is terminated. In addition
      to
      PTO, the Executive will be entitled to normal Company holidays. 

     

    2.6  Withholding.
      The
      Company may deduct from any compensation payable to Executive (including
      payments made pursuant to Section 2 of this Agreement in connection with or
      following termination of employment) amounts sufficient to cover Executive’s
      share of applicable federal, state and/or local income tax withholding, old-age
      and survivors’ and other social security payments, state disability and other
      insurance premiums and payments.

     

    2.7  Stock
      Compensation.
      Upon
      the adoption of a Stock Compensation Plan by the Board, the Company shall make
      an initial grant to Executive of an option to buy up to 3,474,000 shares of
      the
      Company’s common stock, par value $.001 per share (the “Option
      Shares”),
      at an
      exercise price of $1.00 on
      the
      terms and conditions of the Stock Compensation Plan. The Option
      Shares shall vest in equal installments every 90 days from the date of this
      Agreement for each year during the Term until all options have been fully
      vested. For purposes of this Section 2.7, a year shall be a 360-day period.
       

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III

     

    BUSINESS
      EXPENSES

     

    3.1  Business
      Expenses.
      Executive will be reimbursed for all reasonable, out-of-pocket business expenses
      incurred in the performance of his/her duties on behalf of the Company
      consistent with the Company’s policies and procedures, including prior approval
      requirements and submission of appropriate supporting documentation. Such
      business expenses shall include travel, promotional, professional continuing
      education and licensing costs (to the extent required), professional society
      membership fees, seminars and similar expenditures incurred by Executive which
      the Company determines are reasonably necessary for the proper discharge of
      Executive’s duties under this Agreement and for which Executive submits
      appropriate receipts and indicates the amount, date, location and business
      character in a timely manner. 

     

    3.1.1  Executive
      shall be entitled to “economy” class air travel accommodations and proper hotel
      accommodations not to exceed a “4 star” rating. Executive shall be entitled to
“business” class air travel accommodations for flights that exceed 5 hours of
      continuous air travel. 

     

    3.1.2  Prior
      to
      incurring any business expense that exceeds Ten Thousand Dollars (US$10,000),
      Executive shall first seek written consent of the Chairman of the Board.

     

    ARTICLE
      IV

     

    TERMINATION
      OF EMPLOYMENT

     

    4.1  Termination

     

    4.1.1  Executive’s
      employment pursuant to this Agreement shall terminate on the earliest to occur
      of the following:

     

    (a)  upon
      the
      death of Executive (“Death”);

     

    (b)  upon
      the
      delivery to Executive of written notice of termination by the Company if
      Executive shall suffer a physical or mental disability or illness which renders
      Executive, in the reasonable judgment of the Board, unable to perform his duties
      and obligations under this Agreement for either 60 consecutive days or 180
      days
      in any 12-month period (“Disability”);

     

    (c)  upon
      delivery to the Company of written notice of termination by the Executive for
      Good Reason; or

     

    (d)  upon
      delivery to Executive of written notice of termination by the Company for
      Cause.

     

    4.2  Unless
      either (a) this Agreement has been terminated prior to the expiration of
      the Term, or (b) one party notifies the other party at least 60 calendar
      days prior to the end of the Term (including the original Term or as the same
      may have been previously extended) that such party does not wish such Term
      to be
      extended or further extended, this Agreement shall be automatically extended
      upon the terms and conditions hereof for an additional year at the conclusion
      of
      the original or extended Term.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4.2.1  Notwithstanding
      the foregoing Sections 4.1 and 4.2, either party to this Agreement may terminate
      this Agreement prior to the expiration of the Term if the terminating party
      notifies the other party at least 60 calendar days prior to the end of any
      twelve month period ending May 31 (the “Year”).
      

     

    4.3  Certain
      Definitions.
      For
      purposes of this Agreement, the following terms shall have the following
      meanings:

     

    4.3.1  “Cause”
shall
      mean, in the context of a basis for termination of Executive’s employment with
      the Company, that:

     

    (a)  Executive
      has committed an act of actual fraud, moral turpitude, misappropriation of
      funds
      or embezzlement in connection with his duties under this Agreement;

     

    (b)  Executive
      is convicted
      of, or pleas nolo
      contendere
      (no
      contest) to, any crime (whether or not involving the Company) constituting
      a
      felony in the jurisdiction involved;

     

    (c)  Executive’s
      willful misconduct in the performance of Executive’s duties
      hereunder;

     

    (d)  Executive’s
      gross negligence in the performance of his duties hereunder or willful and
      repeated failure or refusal to perform such duties as may be delegated to
      Executive by the Company commensurate with his position; or 

     

    (e)  Executive
      is in material breach of any provision of this Agreement, or willfully fails
      to
      or refuses to comply with the lawful directives of the Chairman of the Board
      or
      the Board in the performance of his duties under this Agreement (other than
      a
      failure caused by temporary disability). 

     

    4.3.2  “Good
      Reason”
giving
      rise to Executive’s right to terminate this Agreement means if
      Executive claims that the
      Company
      has materially breached this Agreement, Executive shall have first provided
      written notice to the
      Company
      of any such claimed material breach with exact details of the claimed material
      breach and the
      Company
      shall have had thirty (30) days from the date of receipt of such written notice
      to cure any such breach; if curable, and in the event the
      Company
      does so cure such breach within said thirty (30) days, such claimed breach
      shall
      not constitute good reason or a breach of this Agreement.  

     

    4.4  Effect
      of Termination

     

    4.4.1   Executive
      acknowledges that in the event of termination of his employment for any reason
      listed under Sections 4.1 and 4.2, Executive shall not be entitled to any
      severance or other compensation from the Company. Without limitation on the
      generality of the foregoing, this Section supersedes any plan or policy of
      the
      Company that provides for severance to its officers or employees, and Executive
      shall not be entitled to any benefits under any such plan or
      policy.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    4.4.2  Subject
      to Section 4.4.1, in the event Executive is terminated without Cause, the
      Company shall continue to pay to Executive the compensation provided for under
      Section 2.1 for the remainder of the Year of such termination. 

     

    ARTICLE
      V

     

    CONFIDENTIAL
      INFORMATION; NON-SOLICITATION; INTELLCTUAL PROPERTIES

     

    5.1  Trade
      Secrets of the Company.
      Executive, during the Term, will develop, have access to and become acquainted
      with various trade secrets which are owned by the Company and/or its affiliates
      and which are regularly used in the operation of the businesses of such
      entities. Executive will not disclose such trade secrets, directly or
      indirectly, or use them in any way, either during the Term or at any time
      thereafter, except as required in the course of his employment by the Company.
      All files, contracts, manuals, reports, letters, forms, documents, notes,
      notebooks, lists, records, documents, customer lists, vendor lists, purchase
      information, designs, computer programs and similar items and information,
      relating to the businesses of such entities, whether prepared by Executive
      or
      otherwise and whether now existing or prepared at a future time, coming into
      his
      possession will remain the exclusive property of such entities, and will not
      be
      removed, other than work-related purposes, from the premises where the work
      of
      the Company is conducted, except with the prior written authorization by the
      Company.

     

    5.2  Confidential
      Data of Customers of the Company.
      Executive, in the course of his duties, will have access to and become
      acquainted with financial, accounting, statistical and personal data of
      customers of the Company and of their affiliates. All such data is confidential
      and will not be disclosed, directly or indirectly, or used by Executive in
      any
      way, either during the Term (except as required in the course of employment
      by
      the Company) or at any time thereafter.

     

    5.3  Inevitable
      Disclosure.
      After
      Executive’s employment has terminated for Cause or without Good Reason,
      Executive will not accept employment with any direct competitor of the Company
      for a period of one (1) year, where the new employment is likely to result
      in
      the inevitable disclosure of the Company’s trade secrets or confidential
      information, or it would be impossible for Executive to perform his new job
      without using or disclosing trade secrets or confidential
      information.

     

    5.4  Limited
      Exceptions.
      Notwithstanding the foregoing, no information will be considered trade secret
      or
      confidential to the extent it is or becomes publicly available without breach
      of
      this Agreement by Executive, is rightfully received by Executive without
      obligations of confidentiality, or is ordered released or disclosed by court
      order, lawful process or government authority.

     

    5.5  No
      Solicitation.
      Executive agrees that he will not, during the Term and for one (1) year
      thereafter if terminated without Cause or with Good Reason or for two (2) years
      thereafter if terminated with for Cause or without Good Reason, encourage or
      solicit any other employee of the Company to terminate his or her employment
      for
      any reason, nor will he assist others to do so.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    5.6  Intellectual
      Properties.
      The
      Executive has signed a separate innovation, proprietary information and
      confidentiality agreement with the Company. 

     

    5.7  Continuing
      Effect.
      The
      provisions of this Section
      5
      will
      remain in effect after the Termination Date.

     

    ARTICLE
      VI

     

    MISCELLANEOUS

     

    6.1  Binding
      Effect; Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties and
      their respective legal representatives, heirs, distributees, successors and
      assigns. Executive may not assign any of his rights and obligations under this
      Agreement. The Company may assign its rights and obligations under this
      Agreement to any successor entity. 

     

    6.2  Notices.
      Any
      notice provided for herein shall be in writing and shall be deemed to have
      been
      given or made (a) when personally delivered or (b) when sent by telecopier
      and
      confirmed within 48 hours by letter mailed or delivered to the party to be
      notified at its or his/hers address set forth herein; or three days after being
      sent by registered or certified mail, return receipt requested, (or by
      equivalent currier with delivery documentation such as FEDEX or UPS) to the
      address of the other party set forth or to such other address as may be
      specified by notice given in accordance with this section 6.2:

     

    
      	
              If
                to the Company:

            	
              Quest
                Group International, Inc.

              11845
                West Olympic Boulevard, No. 1125W

              Los
                Angeles, California 90064

              Telephone: (310)
                247-3840

              Facsimile: (310)
                247-3844

              Attention: Chief
                Executive Officer

            
	 	 
	
              If
                to Executive:

            	
              Harin
                Padma-Nathan

              ________________________________

              ________________________________

              Telephone: (___)
                _______________________

              Facsimile: (___)
                ________________________

            

    

     

    6.3  Severability.
      If any
      provision of this Agreement, or portion thereof, shall be held invalid or
      unenforceable by a court of competent jurisdiction, such invalidity or
      unenforceability shall attach only to such provision or portion thereof, and
      shall not in any manner affect or render invalid or unenforceable any other
      provision of this Agreement or portion thereof, and this Agreement shall be
      carried out as if any such invalid or unenforceable provision or portion thereof
      were not contained herein. In addition, any such invalid or unenforceable
      provision or portion thereof shall be deemed, without further action on the
      part
      of the parties hereto, modified, amended or limited to the extent necessary
      to
      render the same valid and enforceable.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    6.4  Waiver.
      No
      waiver by a party hereto of a breach or default hereunder by the other party
      shall be considered valid, unless expressed in a writing signed by such first
      party, and no such waiver shall be deemed a waiver of any subsequent breach
      or
      default of the same or any other nature.

     

    6.5  Entire
      Agreement.
      This
      Agreement sets forth the entire agreement between the Parties with respect
      to
      the subject matter hereof, and supersedes any and all prior agreements between
      the Company and Executive, whether written or oral, relating to any or all
      matters covered by and contained or otherwise dealt with in this Agreement.
      This
      Agreement does not constitute a commitment of the Company with regard to
      Executive’s employment, express or implied, other than to the extent expressly
      provided for herein.

     

    6.6  Amendment.
      No
      modification, change or amendment of this Agreement or any of its provisions
      shall be valid, unless in writing and signed by the party against whom such
      claimed modification, change or amendment is sought to be enforced.

     

    6.7  Authority.
      The
      Parties each represent and warrant that it/he or she has the power, authority
      and right to enter into this Agreement and to carry out and perform the terms,
      covenants and conditions hereof.

     

    6.8  Attorneys’
      Fees.
      If
      either party hereto commences an arbitration or other action against the other
      party to enforce any of the terms hereof or because of the breach by such other
      party of any of the terms hereof, the prevailing party shall be entitled, in
      addition to any other relief granted, to all actual out-of-pocket costs and
      expenses incurred by such prevailing party in connection with such action,
      including, without limitation, all reasonable attorneys’ fees, and a right to
      such costs and expenses shall be deemed to have accrued upon the commencement
      of
      such action and shall be enforceable whether or not such action is prosecuted
      to
      judgment.

     

    6.9  Titles.
      The
      titles of the sections of this Agreement are inserted merely for convenience
      and
      ease of reference and shall not affect or modify the meaning of any of the
      terms, covenants or conditions of this Agreement.

     

    6.10  Applicable
      Law; Choice of Forum.
      This
      Agreement, and all of the rights and obligations of the parties in connection
      with the employment relationship established hereby, shall be governed by and
      construed in accordance with the substantive laws of the State of California
      without giving effect to principles relating to conflicts of law.

     

    6.11  Arbitration.

     

    6.11.1  Scope.
      To the
      fullest extent permitted by law, Executive and the Company agree to the binding
      arbitration of any and all controversies, claims or disputes between them
      arising out of or in any way related to this Agreement, the employment
      relationship between the Company and Executive and any disputes upon termination
      of employment, including but not limited to breach of contract, tort,
      discrimination, harassment, wrongful termination, demotion, discipline, failure
      to accommodate, family and medical leave, compensation or benefits claims,
      constitutional claims; and any claims for violation of any local, state or
      federal law, statute, regulation or ordinance or common law. For the purpose
      of
      this agreement to arbitrate, references to “Company” include all parent,
      subsidiary or related entities and their employees, supervisors, officers,
      directors, agents, pension or benefit plans, pension or benefit plan sponsors,
      fiduciaries, administrators, affiliates and all successors and assigns of any
      of
      them, and this agreement to arbitrate shall apply to them to the extent
      Executive’s claims arise out of or relate to their actions on behalf of the
      Company.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    6.11.2  Arbitration
      Procedure.
      To
      commence any such arbitration proceeding, the party commencing the arbitration
      must provide the other party with written notice of any and all claims forming
      the basis of such right in sufficient detail to inform the other party of the
      substance of such claims. In no event shall this notice for arbitration be
      made
      after the date when institution of legal or equitable proceedings based on
      such
      claims would be barred by the applicable statute of limitations. The arbitration
      will be conducted in Los Angeles, California, by a single neutral arbitrator
      and
      in accordance with the then-current rules for resolution of employment disputes
      of the American Arbitration Association (“AAA”).
      The
      Arbitrator is to be selected by the mutual agreement of the Parties. If the
      Parties cannot agree, the Superior Court will select the arbitrator. The parties
      are entitled to representation by an attorney or other representative of their
      choosing. The arbitrator shall have the power to enter any award that could
      be
      entered by a judge of the trial court of the State of California, and only
      such
      power, and shall follow the law. The award shall be binding and the Parties
      agree to abide by and perform any award rendered by the arbitrator. The
      arbitrator shall issue the award in writing and therein state the essential
      findings and conclusions on which the award is based. Judgment on the award
      may
      be entered in any court having jurisdiction thereof. The Company shall bear
      the
      costs of the arbitration filing and hearing fees and the cost of the
      arbitrator.

     

    6.12  This
      Agreement shall not be terminated by any voluntary or involuntary dissolution
      of
      the Company resulting from either a merger or consolidation in which the Company
      is not the consolidated or surviving corporation, or a transfer of all or
      substantially all of the assets of the Company. In the event of any such merger
      or consolidation or transfer of assets, Executive’s rights, benefits and
      obligations hereunder shall be assigned to the surviving or resulting
      corporation or the transferee of the Company’s assets.

     

     

    [Signature
      page to follow]

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first above written.

     

    

    
      	
               

               

               

              
                /s/
                  Harin
                  Padma-Nathan                            
                  
Harin
                Padma-Nathan

            	
              Quest
                Group International, Inc.

               

               

              By:
                /s/ Kurt
                Brendlinger                                     
                

              Name:
                Kurt
                Brendlinger                             
                

              Title:
                Chairman                                             
                

            

    

    

    
      
        
        

      

      
        10QUEST
      GROUP INTERNATIONAL, INC.

     

    2007
      STOCK COMPENSATION PLAN

     

    Section
      1. Purpose

     

    The
      purpose of this 2007 Stock Compensation Plan (the “Plan”)
      is to
      advance the interests of Quest Group International, Inc., a Nevada corporation
      (“Quest”),
      by
      enhancing its ability to attract, retain and provide incentives to directors,
      officers, employees and independent contractors who are crucial to the future
      growth and success of Quest and its subsidiaries and Affiliates (as hereinafter
      defined).

     

    Section
      2. Definitions

     

    “Affiliate”
when
      used in conjunction with Quest, shall include, but not be limited to, an entity
      or other person that directly or indirectly controls, or is controlled by,
      or is
      under common control with Quest.

     

    “Award”
means
      any Option, Stock Appreciation Right, Performance Share or Restricted Stock
      awarded under the Plan.

     

    “Board”
means
      the board of directors of Quest.

     

    “Committee”
means
      a
      committee of not less than two members of the Board appointed by the Board
      to
      administer the Plan.

     

    “Common
      Stock”
or
      “Stock”
means
      the Common Stock of Quest.

     

    “Company”
means
      Quest and, except where the content requires otherwise, all present and future
      subsidiaries and Affiliates of Quest.

     

    “Designated
      Beneficiary”
means
      the beneficiary designated by a Participant, in a manner determined by the
      Board, to receive amounts due or exercise rights of the Participant in the
      event
      of the Participant’s death or incapacity. In the absence of an effective
      designation by a Participant, Designated Beneficiary shall mean the
      Participant’s estate, in the event of the Participant’s death, and the
      Participant’s legal guardian, in the event of the Participant’s
      incapacity.

     

    “Fair
      Market Value”
means
      with respect to Common Stock on any given date (i) if the Common Stock is listed
      for trading on one or more national securities exchanges, the mean of the high
      and low sales prices during regular trading hours on the principal exchange
      on
      which it is traded on the grant date, or, if the Common Stock shall not have
      been traded during regular trading hours on such principal exchange over such
      period, the mean of the high and low sales prices during regular trading hours
      on such principal exchange on the first day prior thereto on which the Common
      Stock was so traded; (ii) if Common Stock is not listed for trading on a
      national securities exchange but is traded on the over-the-counter market,
      the
      mean of the highest and lowest bid prices for the Common Stock during regular
      trading hours on the grant date, or, if there are no such bid prices for the
      Common Stock during such period, the mean of the highest and lowest bid prices
      during regular trading hours on the first day prior thereto on which such prices
      appear; and (iii) in all other events, such amount as may be determined by
      the
      Board in good faith by any fair and reasonable means.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Option”
means
      an option to purchase shares of Common Stock awarded to a Participant under
      Section 6.

     

    “Participant”
means
      a
      person selected by the Board to receive an Award under the Plan.

     

    “Performance
      Shares”
mean
      shares of Common Stock which may be earned by the achievement of performance
      goals awarded to a Participant under Section 8.

     

    “Reporting
      Person”
means
      a
      person subject to Section 16 of the Securities Exchange Act of 1934 or any
      successor provision.

     

    “Restricted
      Period”
means
      the period of time selected by the Board during which shares subject to a
      Restricted Stock Award may be repurchased by or forfeited to the
      Company.

     

    “Restricted
      Stock”
means
      shares of Common Stock awarded to a Participant under Section 9.

     

    “Stock
      Appreciation Right”
or
      “SAR”
means
      a
      right to receive any excess in Fair Market Value of shares of Common Stock
      over
      the exercise price awarded to a Participant under Section 7.

     

    Section
      3. Administration

     

    The
      Plan
      shall be administered by the Board or by a Committee to which some or all of
      the
      administration of the Plan is delegated by the Board. In the event the Board
      appoints a Committee, references in the Plan to the Board shall, as appropriate,
      be read as references to the Committee. The Board shall appoint and remove
      members of the Committee in its discretion in accordance with applicable laws.
      If necessary in order to comply with Rule 16b-3 under the Exchange Act, the
      Committee shall, in the Board’s discretion, be comprised solely of “non-employee
      directors” within the meaning of said Rule 16b-3. The foregoing notwithstanding,
      the Board and/or the Committee may delegate nondiscretionary administrative
      duties to such employees of the Company as it deems proper and the Board, in
      its
      absolute discretion, may at any time and from time to time exercise any and
      all
      rights and duties of the Committee under the Plan. 

     

    The
      Board
      shall have plenary authority in its discretion, to the maximum extent
      permissible by law, subject to and not inconsistent with the express provisions
      of the Plan, to administer the Plan. Without limiting the foregoing, the Board
      shall have authority to make Awards, to set administrative rules, guidelines
      and
      practices relating to the Plan as it shall deem advisable from time to time,
      and
      to interpret the provisions of the Plan. In determining the persons to whom
      Awards shall be made, the number of shares to be covered by each Award and
      the
      terms thereof (including the restriction, if any, which shall apply to the
      Common Stock subject to an Award), the Board shall take into account the duties
      of the respective persons, their present and potential contributions to the
      success of the Company and such other factors as the Board, in its discretion,
      shall deem relevant in connection with accomplishing the purposes of the Plan.
      The Board’s decisions shall be final and binding. Except as otherwise required
      by law, no member of the Board shall be liable for any action or determination
      relating to the Plan made in good faith.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Section
      4. Eligibility

     

    Awards
      may be made to employees and independent contractors of the Company. For
      purposes hereof, independent contractors shall include consultants, advisors
      and
      directors of the Company.

     

    Section
      5. Stock
      Available for Awards

     

    (a)  Subject
      to adjustment under Section 10 below, Awards may be made under the Plan for
      up
      to FIFTEEN MILLION (15,000,000) shares of Common Stock. If any Award in respect
      of shares of Common Stock expires or is terminated unexercised or is forfeited
      for any reason or settled in a manner that results in fewer shares outstanding
      than were initially awarded, the shares subject to such Award or so surrendered,
      as the case may be, to the extent of such expiration, termination, forfeiture
      or
      decrease, shall again be available for award under the Plan. Shares issued
      under
      the Plan may consist in whole or in part of authorized but unissued shares
      or
      treasury shares.

     

    (b)  The
      Board
      may grant Awards under the Plan in substitution for stock and stock based awards
      held by employees of another corporation who become employees of the Company
      as
      a result of a merger or consolidation of the employing corporation with the
      Company or the acquisition by the Company of property or stock of the employing
      corporation. The substitute Awards shall be granted on such terms and conditions
      as the Board considers appropriate in the circumstances. The shares which may
      be
      delivered under such substitute Awards shall be in addition to the maximum
      number of shares provided for in Section 5(a).

     

    Section
      6. Stock
      Options

     

    (a)  General.

     

    (i)  Subject
      to the provisions of the Plan, the Board may award Options and determine the
      number of shares to be covered by each Option, the option price therefor, the
      conditions and limitations applicable to the exercise of the Option and the
      restrictions, if any, applicable to the shares of Common Stock issuable
      thereunder.

     

    (ii)  The
      Board
      shall establish the exercise price at the time each Option is
      awarded.

     

    (iii)  Subject
      to Section 10(a), each Option shall be exercisable at such times and subject
      to
      such terms and conditions as the Board may specify in the applicable Award.
      The
      Board may impose such conditions with respect to the exercise of Options,
      including conditions relating to applicable federal or state securities laws,
      as
      it considers necessary or advisable.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (iv)  Options
      granted under the Plan shall provide for the payment of the exercise price
      by
      delivery of cash or check in an amount equal to the exercise price of such
      Options or by delivery of shares of Common Stock of the Company owned by the
      optionee for at least six months (valued at Fair Market Value) and, to the
      extent permitted by the Board at or after the award of the Option, may provide
      for payment by (A) delivery of other property acceptable to the Board (valued
      at
      fair market value), (B) delivery of a promissory note of the optionee to the
      Company on terms determined by the Board, (C) delivery of an irrevocable
      undertaking by a broker to deliver promptly to the Company sufficient funds
      to
      pay the exercise price or delivery of irrevocable instructions to a broker
      to
      deliver promptly to the Company cash or a check sufficient to pay the exercise
      price, (D) pursuant to a cashless exercise feature, (E) payment of such other
      lawful consideration as the Board may determine, or (F) any combination of
      the
      foregoing.

     

    (v)  The
      Board
      may provide for the automatic award of an Option upon the delivery of shares
      to
      the Company in payment of the exercise price of an Option for up to the number
      of shares so delivered.

     

    (vi)  The
      Board
      may at any time accelerate the time at which all or any part of an Option may
      be
      exercised.

     

    Section
      7. Stock
      Appreciation Rights

     

    (a)  The
      Board
      may grant Stock Appreciation Rights entitling recipients on exercise of the
      SAR
      to receive an amount, in cash or Stock or a combination thereof (such form
      to be
      determined by the Board), determined in whole or in part by reference to
      appreciation in the Fair Market Value of the Stock between the date of the
      Award
      and the exercise of the Award. A Stock Appreciation Right shall entitle the
      Participant to receive, with respect to each share of Stock as to which the
      SAR
      is exercised, the excess of the share’s Fair Market Value on the date of
      exercise over its Fair Market Value on the date the SAR was
      granted.

     

    (b)  SARs
      may
      be granted in tandem with, or independently of, Options granted under the Plan.
      An SAR granted in tandem with an Option may be granted either at or after the
      time the Option is granted.

     

    (c)  When
      SARs
      are granted in tandem with Options, the following provisions shall
      apply:

     

    (i)  The
      SAR
      shall be exercisable only at such time or times, and to the extent, that the
      related Option is exercisable and shall be exercisable in accordance with the
      procedure required for exercise of the related Option.

     

    (ii)  The
      SAR
      shall terminate and no longer be exercisable upon the termination or exercise
      of
      the related Option, except that a SAR granted with respect to less than the
      full
      number of shares covered by an Option shall not be reduced until the number
      of
      shares as to which the related Option has been exercised or has terminated
      exceeds the number of shares not covered by the SAR.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (iii)  The
      Option shall terminate and no longer be exercisable upon the exercise of the
      related SAR.

     

    (d)  An
      SAR
      not granted in tandem with an Option shall become exercisable at such time
      or
      times, and on such conditions, as the Board may specify.

     

    (e)  The
      Board
      may at any time accelerate the time at which all or any part of the SAR may
      be
      exercised.

     

    (f)  SARs
      may
      not be sold, pledged, assigned or transferred in any manner other than by will
      or by the laws of intestate succession, and may be exercised during the lifetime
      of grantee only by the Participant. Any transfer by the Participant of any
      SAR
      granted under the Plan shall void such SAR and the Company shall have no further
      obligation with respect to such SAR. No SAR shall be pledged or hypothecated
      in
      any way, nor shall any SAR be subject to execution, attachment or similar
      process.

     

    (g)  SARs
      granted pursuant to this Plan shall represent no more than unfunded unsecured
      contractual obligations of the Company and the Company shall have no obligation
      to set aside any assets to fund any SAR obligation. Amounts payable for SARs
      under the Plan shall be paid from the general funds of the Company, and the
      Participant and any Designated Beneficiary shall be no more than unsecured
      general creditors of the Company with no special or prior right to any assets
      of
      the Company for payment of any SAR obligations hereunder.

     

    Section
      8. Performance
      Shares

     

    (a)  The
      Board
      may make Performance Share Awards entitling recipients to acquire shares of
      Stock upon the attainment of specified performance goals. The Board may make
      Performance Share Awards independent of or in connection with the granting
      of
      any other Award under the Plan. The Board in its sole discretion shall determine
      the performance goals applicable under each such Award, the periods during
      which
      performance is to be measured, and all other limitations and conditions
      applicable to the awarded Performance Shares.

     

    (b)  A
      Participant receiving a Performance Share Award shall have the rights of a
      stockholder only as to shares actually received by the Participant under the
      Plan and not with respect to shares subject to an Award but not actually
      received by the Participant. Prior to receipt of shares pursuant to a
      Performance Share Award, the Performance Share Award shall represent an unfunded
      unsecured contractual obligation of the Company and the Company shall be under
      no obligation to set aside any assets to fund such Performance Share Award.
      A
      Participant shall be entitled to receive a stock certificate evidencing the
      acquisition of shares of Stock under a Performance Share Award only upon
      satisfaction of all conditions specified in the Agreement evidencing the
      Performance Share Award.

     

    (c)  The
      Board
      may at any time accelerate or waive any or all of the goals, restrictions or
      conditions imposed under any Performance Share Award.

     

    (d)  Performance
      Share Awards may not be sold, pledged, assigned or transferred in any manner
      other than by will or by the laws of intestate succession. Any transfer by
      the
      Participant of any Performance Share Award granted under the Plan shall void
      such Award and the Company shall have no further obligation with respect to
      such
      Award. No Performance Share Award shall be pledged or hypothecated in any way,
      nor shall any Performance Share Award be subject to execution, attachment or
      similar process.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Section
      9. Restricted
      Stock

     

    (a)  The
      Board
      may grant Restricted Stock Awards entitling recipients to acquire shares of
      Stock, subject to the right of the Company to repurchase all or part of such
      shares at their purchase price (or to require forfeiture of such shares if
      purchased at no cost) from the recipient in the event that conditions specified
      by the Board in the applicable Award are not satisfied prior to the end of
      the
      applicable Restricted Period or Restricted Periods established by the Board
      for
      such Award. Conditions for repurchase (or forfeiture) may be based on continuing
      employment or service or achievement of pre-established performance or other
      goals and objectives.

     

    (b)  Shares
      of
      Restricted Stock may not be sold, assigned, transferred, pledged or otherwise
      encumbered, except as permitted by the Board during the applicable Restricted
      Period. Shares of Restricted Stock shall be evidenced in such manner as the
      Board may determine. Any certificates issued in respect of shares of Restricted
      Stock shall be registered in the name of the Participant and, unless otherwise
      determined by the Board, deposited by the Participant, together with a stock
      power endorsed in blank, with the Company (or its designee). At the expiration
      of the Restricted Period, the Company (or such designee) shall deliver such
      certificates to the Participant or if the Participant has died, to the
      Participants’ Designated Beneficiary.

     

    (c)  The
      purchase price for each share of Restricted Stock shall be determined by the
      Board. Such purchase price may be paid in cash or such other lawful
      consideration as is determined by the Board.

     

    (d)  The
      Board
      may at any time accelerate the expiration of the Restricted Period applicable
      to
      all, or any particular, outstanding shares of Restricted Stock.

     

    (e)  Notwithstanding
      the foregoing, the Board may award to Participants Restricted Stock for services
      rendered or to be rendered by such Participant pursuant to the terms of any
      agreement between the Company and such Participant, which award is not requested
      to contain any repurchase rights or forfeiture provisions.

     

    Section
      10. General
      Provisions Applicable to Awards

     

    (a)  Maximum
      Term.
      No
      Award shall have a term exceeding ten years, measured from the date of the
      Award
      grant.

     

    (b)  Documentation.
      Each
      Award under the Plan shall be evidenced by an instrument delivered to the
      Participant specifying the terms and conditions thereof and containing such
      other terms and conditions not inconsistent with the provisions of the Plan
      as
      the Board considers necessary or advisable. Such instruments may be in the
      form
      of agreements to be executed by both the Company and the Participant, or
      certificates, letters or similar documents, acceptance of which shall evidence
      agreement to the terms thereof and of this Plan. The certificates representing
      the Stock issued pursuant to an Award granted under this Plan shall bear such
      legends as may be required by applicable law to give notice of restrictions
      on
      transfer of such shares.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (c)  Change
      in Control.
      In the
      event that the Company or the division, subsidiary or other affiliated entity
      for which a Participant performs services is sold, merged, consolidated,
      reorganized or liquidated, all unvested Options immediately vest.

     

    (d)  Board
      Discretion.
      Each
      type of Award may be made alone, in addition to or in relation to any other
      type
      of Award. The terms of each type of Award need not be identical and the Board
      need not treat Participants uniformly. Except as otherwise provided by the
      Plan
      or a particular Award, any determination with respect to an Award may be made
      by
      the Board at the time of the Award grant or at any time thereafter.

     

    (e)  Termination
      of Status.
      The
      Board shall determine and specify in the Award documentation the effect on
      an
      Award of the disability, death, retirement, authorized leave of absence or
      other
      termination of employment or other status of a Participant and the extent to
      which, and the period during which, the Participant’s legal representative,
      guardian or Designated Beneficiary may exercise rights under such
      Award.

     

    (f)  Dilutions
      and Other Adjustments.
      In the
      event of any stock dividend or split, issuance or repurchase of stock or
      securities convertible into or exchangeable for shares of stock, grants of
      options, warrants or rights to purchase stock, recapitalization, combination,
      exchange or similar change affecting the Common Stock, or any other increase
      or
      decrease in the number of issued shares of Common Stock effected without receipt
      of consideration by the Company, the Board in its sole discretion may equitably
      adjust any or all of (i) the number and kind of shares in respect of which
      Awards may be made under the Plan, (ii) the number and kind of shares subject
      to
      outstanding Awards, and (iii) the award, exercise or conversion price with
      respect to any of the foregoing, and may make any other equitable adjustments
      or
      take such other equitable action as the Board, in its discretion, shall deem
      appropriate, including, if considered appropriate by the Board, making provision
      for a cash payment with respect to an outstanding Award. Such adjustments or
      actions shall be conclusive and binding for all purposes. In the event of a
      change in the Common Stock which is limited to a change in the designation
      thereof to “Capital Stock” or other similar designation, or to a change in the
      par value thereof, or from no par value to par value (or vice versa), without
      increase or decrease in the number of issued shares, the shares resulting from
      any such change shall be deemed to be Common Stock within the meaning of the
      Plan. For purposes hereof, the conversion of any convertible securities of
      the
      Company shall not be deemed to have been “effected without receipt of
      consideration.”

     

    In
      the
      event that the Company or the division, subsidiary or other affiliated entity
      for which a Participant performs services is sold, merged, consolidated,
      reorganized or liquidated, the Board may take any one or more of the following
      actions as to outstanding Awards: (i) provide that such Awards shall be
      assumed, or substantially equivalent Awards shall be substituted, by the
      acquiring or succeeding corporation (or an affiliate thereof) on such terms
      as
      the Board determines to be appropriate, (ii) upon written notice to
      Participants, provide that all unexercised Options or SARs shall terminate
      immediately prior to the consummation of such transaction unless exercised
      by
      the Participant within a specified period following the date of such notice,
      (iii) in the event of a sale or similar transaction under the terms of which
      holders of the Common Stock of the Company receive a payment for each share
      surrendered in the transaction (the “Sales
      Price”),
      make
      or provide for a payment to each Option and/or SAR holder equal to the amount
      by
      which (A) the Sales Price times the number of shares of Common Stock subject
      to
      Participant’s outstanding, vested Options or SARs exceeds (B) the aggregate
      exercise price of all such outstanding, vested Options or SARs, in exchange
      for
      the termination of such Options or SARs, (iv) or make such other adjustments,
      if
      any, as the Board determines to be necessary or advisable to provide each
      Participant with a benefit substantially similar to that to which the
      Participant would have been entitled had such event not occurred.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (g)  Withholding.
      The
      Participant shall pay to the Company, or make provision satisfactory to the
      Board for payment of, any taxes required by law to be withheld in respect of
      Awards under the Plan no later than the date of the event creating the tax
      liability. In the Board’s discretion, and subject to such conditions as the
      Board may establish, such tax obligations may be paid in whole or in part in
      shares of Common Stock, including shares retained from the Award creating the
      tax obligation, valued at their Fair Market Value. The Company may, to the
      extent permitted by law, deduct any such tax obligations from any payment of
      any
      kind otherwise due to the Participant.

     

    (h)  Foreign
      Nationals.
      Awards
      may be made to Participants who are foreign nationals or employed outside the
      United States on such terms and conditions different from those specified in
      the
      Plan as the Board considers necessary or advisable to achieve the purposes
      of
      the Plan and comply with applicable laws and/or achieve favorable tax results
      under foreign tax laws.

     

    (i)  Amendment
      of Award.
      The
      Board may amend, modify or terminate any outstanding Award, including
      substituting therefor another Award of the same or a different type, and
      changing the date of exercise or realization, provided that the Participant’s
      consent to such action shall be required unless the Board determines that the
      action, taking into account any related action, would not materially and
      adversely affect the Participant.

     

    (j)  Conditions
      on Delivery of Stock.
      The
      Company shall not be obligated to deliver any shares of Stock pursuant to the
      Plan or to remove restrictions from shares previously delivered under the Plan
      (i) until all conditions of the Award have been satisfied or removed, (ii)
      until, in the opinion of the Company’s counsel, all applicable federal and state
      laws and regulations have been complied with, and (iii) if the outstanding
      Stock
      is at the time listed on any stock exchange, until the shares to be delivered
      have been listed or authorized to be listed on such exchange upon official
      notice of issuance. If the sale of Stock has not been registered under the
      Securities Act of 1933, as amended, the Company may require, as a condition
      to
      exercise of the Award, such representations or agreements as the Company may
      consider appropriate to avoid violation of such Act and may require that the
      certificates evidencing such Stock bear an appropriate legend restricting
      transfer. Except to the extent as may be specified in the documentation with
      respect to a particular Award grant, the Company shall be under no obligation
      to
      register or qualify any shares of Common Stock subject to Awards under any
      federal or state securities law or on any exchange.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Section
      11. Miscellaneous

     

    (a)  No
      Right To Employment or Other Status.
      No
      person shall have any claim or right to be granted an Award, and the grant
      of an
      Award shall not be construed as giving a Participant the right to continued
      employment by or the right to continue to provide services to the Company.
      The
      Company expressly reserves the right at any time to dismiss a Participant free
      from any liability or claim under the Plan, except as may be expressly provided
      in the applicable Award.

     

    (b)  No
      Rights As Stockholder.
      Subject
      to the provisions of the applicable Award, no Participant or Designated
      Beneficiary shall have any rights as a stockholder with respect to any shares
      of
      Common Stock to be distributed under the Plan until he or she becomes the record
      holder thereof.

     

    (c)  No
      Restriction on the Right of the Company to Effect Corporate
      Changes.
      The
      Plan and the Options granted hereunder shall not affect in any way the right
      or
      power of Quest or its stockholders to make or authorize any or all adjustments,
      recapitalization, reorganizations or other changes in the Company’s capital
      structure or its business, or any merger or consolidation of the Company, or
      any
      issue of stock or of options, warrants or rights to purchase stock or of bonds,
      debentures, preferred or prior preference stocks whose rights are superior
      to or
      affect the Common Stock or the rights of holders thereof or which are
      convertible into or exchangeable for Common Stock, or the dissolution or
      liquidation of Quest or the Company, or any sale or transfer of all or any
      part
      of its assets or business, or any other corporate act or proceeding, whether
      of
      a similar character or otherwise.

     

    (d)  Exclusion
      from Benefit Computations.
      Except
      as expressly specified in the applicable plan or program, no amount or shares
      of
      Common Stock payable upon exercise of an Award granted under the Plan shall
      be
      considered salary, wages or compensation for purposes of determining the amount
      or nature of benefits that a Participant is entitled to receive under any
      Company benefit plan or program.

     

    (e)  Effective
      Date and Term.
      This
      Plan shall become effective upon adoption by the Board provided, however, that
      no Award shall be exercisable unless and until written consent of the
      shareholders of the Company, or approval of shareholders of the Company voting
      at a validly called shareholders’ meeting, is obtained within twelve months
      after adoption by the Board. If such shareholder approval is not obtained within
      such time, Awards granted hereunder shall terminate and be of no force and
      effect from and after expiration of such twelve-month period. Awards may be
      granted or exercised under this Plan only after there has been compliance with
      all applicable federal and state securities laws. No Award may be made under
      the
      Plan after the tenth anniversary of the Plan’s effective date, but Awards
      granted before such date may extend beyond that date.

     

    (f)  Amendment
      of Plan.
      The
      Board may amend, suspend or terminate the Plan or any portion thereof at any
      time; provided, however, that no amendment shall be made without stockholder
      approval if such approval is necessary to comply with any applicable tax or
      regulatory requirement. Prior to any such approval, Awards may be made under
      the
      Plan expressly subject to such approval.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (g)  Delivery
      of Financial Statements.
      To the
      extent required by applicable laws, rules and regulations, the Company shall
      deliver to each Participant financial statements of the Company at least
      annually while such Participant holds an outstanding Award.

     

    (h)  Notices.
      Any
      notice to be given under the terms of the Plan shall be addressed to the Company
      in care of its Secretary at its principal office, and any notice to be given
      to
      a Participant shall be addressed to such Participant at the address maintained
      by the Company for such person or at such other address as the Participant
      may
      specify in writing to the Company.

     

    (i)  Governing
      Law.
      The
      provisions of the Plan shall be governed by and interpreted in accordance with
      the laws of the state of California.

     

     

    
      	 	
              QUEST
                GROUP INTERNATIONAL, INC.

               

               

            
	 	
              By:
                /s/ Harin
                Padma-Nathan                                            
                

              Title:
                Chief Executive
                Officer                                           
                

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    STOCK
      OPTION AGREEMENT

     

    THIS
      STOCK OPTION AGREEMENT (“Agreement”)
      is
      made by and between QUEST GROUP INTERNATIONAL, INC., a Nevada corporation (the
      “Company”),
      and
      ______________________ (the “Optionee”).

     

    NOW,
      THEREFORE, in consideration of the mutual benefit to be derived herefrom, the
      Company and Optionee agree as follows:

     

    1.  Grant
      of Option.
      The
      Company hereby grants to Optionee, subject to all the terms and provisions
      of
      the 2007 Stock Compensation Plan, as such Plan may be hereinafter amended,
      a
      copy of which is attached hereto and incorporated herein by this reference
      (the
“Plan”),
      the
      right, privilege and option (“Option”)
      to
      purchase _______ shares of its common stock (“Stock”)
      at
      __________ per share, in the manner and subject to the conditions provided
      hereinafter and in the Plan and any amendments thereto and any rules and
      regulations thereunder.

     

    2.  Vesting
      and Exercise of Option.
      The
      Optionee shall be vested in _____ % of the total number of shares subject to
      the
      Option on the date of execution of this Agreement. Thereafter, the remaining
      shares subject to the Option (the “Vesting
      Shares”)
      shall
      vest in the Optionee and may be exercised by the Optionee as to the percentage
      (to a maximum of 100%) of the Vesting Shares determined by multiplying the
      number of complete years that the Optionee has been in the employ of the Company
      since the date of execution of this Agreement by _____% for each complete year.
      Any exercise may be with respect to any part or all of the shares then vested
      and exercisable pursuant to such Option, provided that the minimum number of
      shares exercisable at any time shall not be less _______ shares or the balance
      of shares for which the Option is then exercisable.

     

    3.  Termination
      of Option.
      Except
      as otherwise provided in this Agreement or the Plan, to the extent not
      previously exercised, the Option shall terminate upon the first to occur of
      any
      of the following events:

     

    a.  ____________,
      20____, not to exceed 10 years from the date of the grant of the Option
      hereunder;

     

    b.  the
      date
      the Optionee ceases to be employed by the Company (including any Affiliate
      thereof as defined by the Plan), is no longer an officer or member of the Board
      of Directors of the Company or no longer performs services for the Company,
      for
      any reason (other than such Optionee's death or disability), any Option granted
      hereunder to such Optionee shall expire three months after the date of such
      termination. The Board shall, in its sole and absolute discretion, decide
      whether an authorized leave of absence or absence for military or governmental
      service, or absence for any other reason, shall constitute termination of
      eligibility for purposes of this Section. In the event the Optionee’s
      termination results from the fact that the Optionee is “disabled,” the Option
      shall expire one year after the date of such termination. Any option that has
      not vested in the Optionee as of the date of termination of employment or
      service with the Company, shall immediately expire and shall be null and
      void.

     

    c.  six
      months after the date of the Optionee’s death. The Option may be exercised
      (subject to the condition that no Option shall be exercisable after its
      expiration and only to the extent that the Optionee's right to exercise such
      Option was vested at the time of the Optionee's death) at any time within six
      months after the Optionee's death by the executors or administrators of the
      Optionee or by any person or persons who shall have acquired the Option directly
      from the Optionee by bequest or inheritance. Any option that has not vested
      in
      the Optionee as of the date of death, shall immediately expire and shall be
      null
      and void.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    d.  the
      dissolution or liquidation of the Company; or

     

    e.  the
      breach by Optionee of any provision of the Plan or this Agreement.

     

    4.  Method
      of Exercise.
      An
      Option shall be exercised by written notice to the Company by the Optionee
      (or
      successor in the event of death). Such written notice shall state the number
      of
      shares with respect to which the Option is being exercised and designate a
      time,
      during normal business hours of the Company, for the delivery thereof
      ("Exercise
      Date"),
      which
      time shall be at least 30 days after the giving of such notice unless an earlier
      date shall have been mutually agreed upon. At the time specified in the written
      notice, the Company shall deliver to the Optionee at the principal office of
      the
      Company, or such other appropriate place as may be determined by the Board,
      a
      certificate or certificates for such shares. Notwithstanding the foregoing,
      the
      Company may postpone delivery of any certificate or certificates after notice
      of
      exercise for such reasonable period as may be required to comply with any
      applicable listing requirements of any securities exchange. In the event an
      Option shall be exercisable by any person other than the Optionee, the required
      notice under this Section shall be accompanied by appropriate proof of the
      right
      of such person to exercise the option. The option exercise price shall be
      payable in full on or before the option Exercise Date in any one of the
      following alternative forms:

     

    a.  Full
      payment in cash or certified bank or cashier's check;

     

    b.  A
      full
      recourse promissory note executed by the Optionee, made payable to the Company
      bearing interest at such rate as the Board shall determine, but in no case
      less
      than the “Applicable Federal Rate” at the time the note is executed applicable
      under the Code to obligations of the same duration. The note shall contain
      such
      terms and conditions as may be determined by the Board; provided, however,
      that
      the full principal amount of the note and all unpaid interest accrued thereon
      shall be due not later than five years from the date of exercise. The Company
      may obtain from the Optionee a security interest in all shares of Stock issued
      to the Optionee under the Plan for the purpose of securing payment under the
      note and shall retain possession of the stock certificates representing such
      shares in order to perfect its security interest;

     

    c.  Full
      payment in shares of Stock or other securities of the Company having a fair
      market value on the Exercise Date in the amount equal to the option exercise
      price;

     

    d.  If
      expressly authorized by the Board, pursuant to a cashless exercise
      feature;

     

    e.  A
      combination of the consideration set forth in Sections (a), (b), (c) and (d)
      hereof equal to the option exercise price; or

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    f.  Any
      other
      method of payment including, but not limited to, the delivery by Optionee of
      an
      irrevocable direction to a securities broker approved by the Company to sell
      the
      Stock and to deliver all or part of the sales proceeds to the Company in payment
      of all or part of the exercise price and any withholding taxes.

     

    5.  Restrictions
      on Exercise and Delivery.
      The
      exercise of each Option shall be subject to the condition that, if at any time
      the Board shall determine, in its sole and absolute discretion,

     

    a.  the
      satisfaction of any withholding tax or other withholding liabilities, is
      necessary or desirable as a condition of, or in connection with, such exercise
      or the delivery or purchase of Stock pursuant thereto,

     

    b.  the
      listing, registration, or qualification of any shares deliverable upon such
      exercise is desirable or necessary, under any state or federal law, as a
      condition of, or in connection with, such exercise or the delivery or purchase
      of shares pursuant thereto, or

     

    c.  the
      consent or approval of any regulatory body is necessary or desirable as a
      condition of, or in connection with, such exercise or the delivery or purchase
      of shares pursuant thereto,

     

    then
      in
      any such event, such exercise shall not be effective unless such withholding,
      listing, registration, qualification, consent or approval shall have been
      effected or obtained free of any conditions not acceptable to the Board.
      Optionee shall execute such documents and take such other actions as are
      required by the Board to enable it to effect or obtain such withholding,
      listing, registration, qualification, consent or approval. Neither the Company
      nor any officer or member of the Board or the Committee, shall have any
      liability with respect to the non-issuance or failure to sell shares as the
      result of any suspensions of exercisability imposed pursuant to this
      Section.

     

    6.  Nonassignability.
      Options
      may not be sold, pledged, assigned or transferred in any manner other than
      by
      will or by the laws of intestate succession, and may be exercised during the
      lifetime of Optionee only by Optionee. Any transfer by Optionee of any Option
      granted under the Plan or this Agreement shall void such Option and the Company
      shall have no further obligation with respect to such Option. No Option shall
      be
      pledged or hypothecated in any way, nor shall any Option be subject to
      execution, attachment or similar process.

     

    7.  Restrictive
      Legends.
      Each
      certificate evidencing the shares acquired upon exercise of an Option hereunder,
      including any certificate issued to any transferee thereof, shall be imprinted
      with legends substantially in the form set forth in the Plan.

     

    8.  Rights
      as Shareholder.
      Neither
      Optionee nor his executor, administrator, heirs or legatees, shall be, or have
      any rights or privileges of a shareholder of the Company in respect of the
      Stock
      unless and until certificates representing such Stock shall have been issued
      in
      Optionee’s name.

     

    9.  No
      Right of Employment.
      Neither
      the grant nor exercise of any Option nor anything in the Plan or this Agreement
      shall impose upon the Company or any other corporation any obligation to employ
      or continue to employ any Optionee. The right of the Company and any other
      corporation to terminate any employee shall not be diminished or affected
      because an Option has been granted to such employee.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    10.  Definitions.
      Capitalized terms shall have the meaning set forth in the Plan unless otherwise
      defined herein.

     

    11.  Notices.
      Any
      notice to be given under the terms of this Agreement shall be addressed to
      the
      Company in care of its Secretary at its principal office, and any notice to
      be
      given to Optionee shall be addressed to such Optionee at the address maintained
      by the Company for such person or at such other address as the Optionee may
      specify in writing to the Company.

     

    12.  Binding
      Effect.
      This
      Agreement shall be binding upon and inure to the benefit of Optionee, his heirs
      and successors, and of the Company, its successors and assigns.

     

    13.  Governing
      Law.
      This
      Agreement shall be governed by the laws of the State of California.

     

    14.  Application
      of Plan.
      The
      Company has delivered and the Optionee hereby acknowledges receipt of a copy
      of
      the Plan. The parties agree and acknowledge that the Option granted hereunder
      is
      granted pursuant to the Plan and subject to the terms and provisions thereof,
      and the rights of the Optionee are subject to modifications and termination
      in
      certain events as provided in the Plan. 

     

    IN
      WITNESS WHEREOF, this Agreement is effective as of, and the date of grant shall
      be _____________, 20__.

     

    
      	 	
              QUEST
                GROUP INTERNATIONAL, INC.

               

               

            
	 	
              By:_________________________________________

              Title:________________________________________

               

            
	 	
              OPTIONEE

               

              ______________________________________

            

    

    

    
      
        
        

      

      
        14

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