Exhibit
      10.1

    


    SEVERANCE
      AGREEMENT and GENERAL RELEASE

    


    


    This
      SEVERANCE
      AGREEMENT and GENERAL RELEASE (the
      “Agreement”)
      is
      entered into by and between SulphCo, Inc., a Nevada corporation (along with
      its
      successors and assigns, the “Company”)
      and
      Brian Savino, an individual residing at 458 Jan Kelly Lane, Houston, TX 77024
      (“Executive,”
and
      together with the Company, the “Parties”).

     

    WHEREAS,
      Executive is employed by the Company pursuant to an Employment Agreement by
      and
      between Executive and the Company, dated March 9, 2007 (the “Employment
      Agreement”);
      and


     

    WHEREAS,
      the
      Parties have agreed that it is in their mutual best interests that Executive
      resign his employment; and

     

    WHEREAS,
      the
      Parties wish to resolve all issues arising from Executive’s employment and
      resignation of employment from the Company.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants contained herein, and intending to be
      legally bound thereby, the Parties agree as follows:

     

    1. This
      Agreement shall constitute Executive’s letter of resignation, effective March 8,
      2008 (the “Termination
      Date”),
      from
      employment, and all positions and offices held, with or on behalf of the
      Company, and all duties and responsibilities associated with such employment,
      positions and offices. 

     

    2. In
      addition to paying Executive (a) the portion of Executive’s Base Salary (as
      defined in Section 2(a) of the Employment Agreement) as has accrued up through
      the Termination Date which Executive has not yet been paid, (b) an amount equal
      to the value of Executive’s accrued unused vacation days, and (c) the amount of
      reasonable business expenses incurred by Executive on behalf of the Company,
      and
      submitted to the Company in accordance with the Company’s regular expense
      reimbursement polices, prior to the Termination Date and not yet reimbursed
      as
      of such date, the Company will pay to Executive the following:

     

    (a) $150,000
      for the period beginning March 8, 2008, less legally required withholdings
      and
      deductions, payable in equal installments in accordance with the Company’s
      regular payroll periods, beginning with the first regularly scheduled pay period
      following the conclusion of the 7-day revocation period after execution of
      this
      Agreement by Executive (as described in Section 10 hereof), and will cease
      at
      the expiration of two (2) months thereafter.

     

    (b) The
      Parties hereby agree to amend the Notice of Grant of Stock Option by and between
      Executive and the Company, dated March 9, 2007 (the “Option”),
      as
      follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i) 66,666
      shares (the “Vested
      Shares”)
      will
      be deemed vested as of the Termination Date, but all other vesting under the
      Option shall cease as of the Termination Date and the unvested portion of the
      Option shall immediately expire and be null and void; and

     

    (ii) the
      Vested Shares will remain exercisable until the third (3rd)
      anniversary following the Termination Date, at which time the Option will expire
      to the extent any Vested Shares remain unexercised as of such date.

     

    Except
      as
      otherwise modified above, the terms and conditions of the Option shall remain
      in
      full force and effect.

     

    (c) A
      lump
      sum payment equal to $25,500, less legally required withholdings and deductions,
      payable within thirty (30) days following the Termination Date.

     

    (d) Upon
      proper election of continuation coverage under Title X of the Consolidated
      Budget Reconciliation Act of 1985, as amended (“COBRA”)
      under
      the Company’s group health plans, the Company shall pay the applicable COBRA
      premiums for Executive (and Executive’s eligible dependents) until the earlier
      of (i) the date Executive first becomes eligible for coverage under a subsequent
      employer’s applicable group health plan(s), (ii) the date such coverage
      terminates under applicable law, or (iii) twelve (12) months after the
      Termination Date.

     

    (e) Executive
      acknowledges and agrees that he is not entitled to receive the payments or
      benefits described in subsections (a) through (d) above unless he executes
      (and
      does not revoke) this Agreement within the time periods provided in Section
      10
      hereof. 

     

    3. Executive
      acknowledges that by signing this Agreement and accepting the benefits of it,
      that he is giving up forever the right to seek any relief from the Company
      or
      any person or entity associated with the Company for any event occurring prior
      to the execution of this Agreement by all Parties. Pursuant to that
      understanding and as consideration for the payments and benefits set forth
      in
      Section 2, subsections (a) through (d), Executive irrevocably and
      unconditionally releases, remits, acquits, and discharges the Company, its
      corporate affiliates, partners, and its present and former officers, directors,
      agents, employees, contractors, successors and assigns (separately and
      collectively, the “Releasees”),
      jointly and individually, from any and all claims, known or unknown, which
      Executive, his heirs, successors or assigns have or may have against the
      Releasees, and any and all liability which the Releasees may have to him,
      whether called claims, demands, causes of action, obligations, damages or
      liabilities arising from any and all basis, however called, including but not
      limited to claims of breach of contract or discrimination under any federal,
      state or local law, rule, or regulation. This Release relates to claims arising
      prior to and during Executive’s employment by the Company and/or in connection
      with the termination of Executive’s employment with the Company, whether those
      claims are past or present, whether they arise from common law, contract or
      statute, whether they arise from labor laws, discrimination laws, or any other
      law, rule or regulation; provided, however, that this Release does not apply
      to
      any employment rights or claims that Executive may have under the Age
      Discrimination In Employment Act which may arise after this Agreement is
      executed by all of the Parties. Executive specifically acknowledges that this
      Release is applicable to any claim under the Age Discrimination in Employment
      Act, the Civil Rights Act of 1964 and the Americans with Disabilities Act,
      the
      Family Medical Leave Act and any similar state law or laws. This Release is
      for
      any type of claim Executive may have, including but not limited to any claim
      under the Employment Agreement, or any claim involving termination,
      reinstatement, wages, back pay, front pay, severance pay, compensatory damages,
      punitive damages, damages for pain and suffering, or attorneys’ fees. Executive
      agrees that he will not be entitled to any benefit from any claim or proceeding
      filed by Executive or on Executive’s behalf with any municipal, state or federal
      agency or court. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    Executive
      further agrees that he will not seek future employment with the Company, its
      partners or corporate affiliates, and if Executive does seek employment, the
      Company (or such partner or corporate affiliate) will deny such employment
      and
      Executive will have no claim whatsoever because of said denial.

     

    4. The
      Parties acknowledge and agree that the terms and conditions of the
      Nondisclosure, Noncompetition and Assignment of Developments Agreement by
      Executive in favor of the Company, dated March 9, 2007 (the “Nondisclosure
      Agreement”),
      and
      all Executive’s obligations and the Company’s rights thereunder, shall remain in
      full force and effect, except that Section 7 of the Nondisclosure Agreement
      is
      hereby amended by (a) deleting the phrase “anywhere in the world” and replacing
      it with “anywhere in the
      United States, Canada, Kuwait, Indonesia, United Arab Emirates, Venezuela,
      and
      Mexico,” and (b) deleting the last sentence of the Section and replacing it with
“For purposes of this Agreement, the ‘Products and Services’ shall be defined to
      include the development, commercialization and sale of technology for the
      improvement of API and/or lowering of sulphur, TAN, or nitrogen compounds in
      processes applicable to any and all hydrocarbons and/or petro-chemicals, but
      excluding normal refining processes.”

     

    5. The
      Parties agree that the execution of this Agreement is in compromise and final
      settlement between the Parties of all disputed matters, whether asserted or
      not,
      constitutes full satisfaction of all claims made or which could be made, and
      does not in any way admit liability or wrongdoing by any entity or
      individual.

     

    6. The
      Parties intend this Agreement to be legally binding upon and inure to the
      benefit of each of them and their respective successors and
      assigns.

     

    7. Executive
      agrees to keep the substance, terms and existence of this Agreement
      confidential, except as necessary for the administration or enforcement of
      this
      Agreement. The Parties further agree that if Executive breaches this provision
      of the Agreement and discloses any provision of this Agreement without the
      express and written authorization of the Company, the Company will immediately
      cease to make any further payment due under this Agreement. Notwithstanding
      the
      foregoing, this provision shall not prohibit or restrict the Company from
      disclosing the substance, terms and/or existence of the Agreement publicly,
      whether voluntarily or as may be required by applicable law, regulations or
      securities exchange rules.

     

    8. This
      Agreement, together with the other agreements referenced herein, is the complete
      agreement between the Parties, and there are no written or oral understandings,
      promises or agreements directly or indirectly related to this Agreement that
      are
      not incorporated herein in full, and does not in any way admit liability or
      wrongdoing by any party. The Parties acknowledge and agree that any provision
      in
      the Employment Agreement that is inconsistent with the terms of this Agreement
      is hereby superseded by this Agreement.

     

    9. Executive
      acknowledges that he has carefully read this Agreement, that he has been advised
      prior to execution of this Agreement to seek the advice of an attorney and
      that
      this Agreement also advises Executive to seek the advice of an attorney, that
      he
      knows and understands the contents of this Agreement, that he has been given
      adequate time to consider whether to execute the Agreement, that he executes
      this Agreement knowingly and voluntarily as his own free act and deed, and
      that
      this Agreement was freely entered into without fraud, duress or
      coercion.

     

    10. Executive
      further acknowledges that Executive was given at least twenty-one (21) days
      in which to consider whether to execute this Agreement before being required
      to
      make a decision. Executive also acknowledges that Executive may revoke the
      Agreement for a period of seven (7) days from the date that Executive
      executes this Agreement. To revoke the Agreement, Executive must deliver a
      written notice stating that he is revoking this Agreement to Larry Ryan, at
      the
      Company’s principal offices, within such 7-day period immediately following the
      date Executive executes the Agreement.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    11. This
      Agreement shall be and remain in effect despite any alleged breach of this
      Agreement or the discovery or existence of any new or additional fact, or any
      fact different from that which the Company or Executive now know or believe
      to
      be true. Notwithstanding the foregoing, nothing in this Agreement shall be
      construed as or constitute a release of the Parties’ respective rights to
      enforce the terms of this Agreement.

     

    12. The
      Parties agree that any dispute arising out of the Employment Agreement, the
      Nondisclosure Agreement and/or this Severance Agreement shall be governed by
      the
      laws of the State of Nevada, and any claims or legal actions arising under
      such
      agreements shall be commenced and maintained in any federal or state court
      located in Nevada, and each of the Parties accepts the exclusive jurisdiction
      of
      the aforesaid courts.

     

    13. If
      any
      provision of this Agreement shall be invalid or unenforceable, the balance
      of
      this Agreement shall remain in effect, and if any provision is inapplicable
      to
      any person or circumstance, it shall nevertheless remain applicable to all
      other
      persons and circumstances. Moreover, the Parties authorize and request a court
      of competent jurisdiction to modify any unenforceable or overly broad provision
      to the least extent possible, while still maintaining as much of the Parties’
original meaning as possible.

     

    14. This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original, but all of which together shall constitute one and the same
      instrument.

     

    15. Executive
      hereby acknowledges and agrees that the Company makes no representations or
      warranties regarding the tax treatment or tax consequences of any compensation,
      benefits or other payments under the Agreement, including, without limitation,
      by operation of Section 409A of the Internal Revenue Code of 1986, as amended,
      or any successor statute, regulation or guidance thereto.

     

    16. As
      further consideration, Executive agrees to return to the Company all Company
      property in his possession, such as any Company-issued credit or other similar
      card(s), keys, computer programs, files and other such things, upon executing
      this Agreement. Notwithstanding the foregoing, the Company shall transfer to
      Executive title to his Company-provided lap top computer, Serial Number W872655QX92,
      that Executive is currently using; provided, however, prior to such transfer,
      Executive agrees that the Company shall be permitted to remove and/or delete
      any
      and all Company information, documents, files and/or materials, including
      without limitation, all non-public, proprietary and/or sensitive Company
      information, as determined in the Company’s sole discretion. The Parties agree
      that the value of the lap top computer is $1,500. All risk of damage or loss
      with respect to such lap top computer shall rest with Executive, the computer
      is
      transferred to Executive “as is,” with no representations or warranties, express
      or implied, being made to Executive (including warranties of merchantability
      or
      fitness for a particular purpose) and, without limiting the generality of the
      foregoing in any way, in no event shall the Company be liable for any,
      consequential, special, punitive or other damages in connection with this
      computer transfer.

     

    17. Executive
      agrees, in exchange for the consideration given by the Company in this
      Agreement, as follows:

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (a) Nonsolicitation
      of Customers.
      For two
      years following the signing of this Agreement, Executive shall not directly
      or
      indirectly, alone or as an owner, member, manager, partner, officer, employee,
      director, investor, lender, consultant or independent contractor of any entity,
      call upon, solicit or do business with, either for himself or for any other
      person or entity, any current or prospective customers or accounts of the
      Company for the purpose of competing (i.e., by providing the Products and
      Services, as defined below), whether directly or indirectly, nor shall Executive
      make known to any other person or entity, either directly or indirectly, the
      names and addresses of and other pertinent information relating to any such
      customers or accounts, or any of the Confidential Information (as defined in
      the
      Nondisclosure Agreement) relating to any of them.

     

    (b) Noncompetition.
      For two
      years following the signing of this Agreement, Executive shall not, anywhere
      in
      the United States, Canada, Kuwait, Indonesia, United Arab Emirates, Venezuela,
      and Mexico, directly or indirectly, alone or as an owner, member, manager,
      partner, officer, employee, director, investor, lender, consultant or
      independent contractor of any entity, (i) accept employment or establish any
      other relationship with any business that is in competition, whether directly
      or
      indirectly, with the Products and Services being created, developed,
      manufactured or planning to be manufactured, marketed or planned to be marketed,
      distributed or planning to be distributed, or sold or planning to be sold by
      the
      Company, or (ii) engage in any business or activity that is in competition
      with
      the Products and Services. Notwithstanding the forgoing, the record or
      beneficial ownership by Executive of five (5) percent or less of the outstanding
      publicly traded capital stock of any entity shall not be deemed, in and of
      itself, to be in violation of this Section. For purposes of this Agreement,
      the
“Products
      and Services”
shall
      be defined to include the development, commercialization and sale of technology
      for the improvement of API and/or lowering of sulphur, TAN, or nitrogen
      compounds in processes applicable to any and all hydrocarbons and/or
      petro-chemicals, but excluding normal refining processes.

     

    (c) Nonsolicitation
      of Employees.
      For two
      years following the signing of this Agreement, Executive shall not, in any
      manner, directly or indirectly, hire or engage, or assist any company or
      business organization by which Executive is employed or which is directly or
      indirectly controlled by Executive to hire or engage any person who is or was
      employed by the Company (or is or was an agent, representative, contractor,
      project consultant or consultant of the Company) at any time during Executive's
      employment with the Company or two years thereafter. Furthermore, for two years
      following the signing of this Agreement, Executive shall not, in any manner,
      directly or indirectly, solicit, recruit or induce, or assist any company or
      business organization of which Executive is an employee or which is directly
      or
      indirectly controlled by Executive to solicit, recruit or induce, any person
      who
      is or was employed by the Company (or is or was an agent, representative,
      contractor, project consultant or consultant or the Company) at the time of
      Executive's termination to leave his or her employment, relationship or
      engagement with the Company.

     

    18. Executive
      acknowledges that (a) his promises set forth in Section 17 above are in addition
      to his promises set forth in the Nondisclosure Agreement, and that the
      consideration given by the Company in this Agreement independently justifies
      Executive’s promises set forth in Section 17 above; (b) in the event Executive
      violates Section 17 above, the Company shall be entitled to appropriate
      injunctive relief to prevent all current and future violations, as well as
      damages; and (c) in the event Executive violates Section 17 above, Executive
      shall immediately return to the Company the monetary consideration promised
      to
      Executive in this Agreement (and the Company shall be entitled to specific
      performance to recoup such monetary compensation). 

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    


    IN
      WITNESS WHEREOF, and
      intending to be legally bound, each of the Parties hereto has caused this
      Agreement to be executed as of the dates indicated.

    

      
        	 	
                SULPHCO,
                  INC.

              
	 	 
	 	 
	
                Date:
                  March 13, 2008

              	
                By:
                  /s/ Larry D. Ryan

              
	 	 
	 	
                Name:
                  Larry D. Ryan

              
	 	 
	 	
                Title:
                  Chief Executive Officer

              
	 	 
	 	 
	
                Date:
                  March 13, 2008

              	
                /s/
                  Brian Savino

              
	 	
                BRIAN
                  SAVINO

              


      

    

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    


    IF
      YOU DO
      NOT WANT TO USE THE 21-DAY REVIEW PERIOD, 

    PLEASE
      CAREFULLY REVIEW AND SIGN THIS DOCUMENT

    


    I,
      Brian
      Savino, acknowledge that I was informed and understand that I have at least
      21
      days within which to consider the attached Agreement, have been advised of
      my
      right to consult with an attorney regarding such Agreement and have considered
      carefully every provision of the Agreement, and that after having engaged in
      those actions, I prefer to and have requested that I enter into the Agreement
      prior to the expiration of the 21-day period.

    


    
      	
              /s/
                Brian Savino

            	
              March
                13, 2008

            
	
              Signature

            	
              Date