Document:

COLOMBIA
CLEAN POWER & FUELS, INC.

    

    10%
SECURED CONVERTIBLE NOTE DUE JUNE 30, 2012

    

    No.
______

    
      	
              $_________

            	
              _______________

            

    

    

    FOR VALUE RECEIVED, COLOMBIA CLEAN
POWER & FUELS, INC., a Nevada corporation (herein called the “Company”),
hereby promises to pay on June 30, 2012 to ________________, with an address at
__________________ (herein called the “Holder”), the principal sum of
___________ ($__________), together with interest upon the principal hereof at
the rate of 10% per annum.  Interest on this Note shall accrue on the
outstanding principal amount on this Note from the date of issuance until the
date of repayment of the principal and payment of accrued interest in
full.  Interest shall be calculated on the basis of a 365 day year and
shall be payable in cash at maturity, unless all or a part of the principal
amount of the Note is converted as provided below in which event interest will
be payable in cash upon conversion as provided below.  Furthermore,
upon the occurrence of an event of default (as described below), then to the
extent permitted by law, the Company will pay interest in cash to the Holder,
payable on demand, on the outstanding principal balance of this Note from the
date of the event of default until such event of default is cured at the rate of
the lesser of 15% and the maximum applicable legal rate per
annum.  Payments hereunder shall be made at such place as the holder
hereof shall designate to the undersigned, in writing, in lawful money of the
United States of America.  Any payment which becomes due on a
Saturday, Sunday or legal holiday shall be payable on the next business
day.

    

    This Note shall, (i) upon declaration
by the Holder or (ii) automatically upon acceleration pursuant to clause (c)
below, become immediately due and payable upon the occurrence of any of the
following specified events of default:

    

    (a)           If
the Company shall default in the due and punctual payment of the principal
amount of this Note when and as the same shall become due and payable, whether
at maturity or by acceleration; or

    

    (b)           If
the Company shall default in the due and punctual payment of interest on this
Note when the same shall become due and payable; or

    

    (c)           The
Company shall fail to observe and perform any material term, condition or
agreement in this Note, which term, condition or agreement is required on its
part to be observed or performed, and such failure shall continue unremedied for
a period of ten (10) days after written notice specifying such failure shall
have been given to the Company by the Holder of this Note; or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (d)           If
the Company shall commence a voluntary case or other proceeding seeking
liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect
or seeking the appointment of a trustee, receiver, liquidator, custodian or
other similar official of it or any substantial part of its property, or shall
consent to any such relief or to the appointment of or taking of possession by
any such official in an involuntary case or other proceeding commenced against
it, or shall make a general assignment for the benefit of creditors, or shall
take any corporate action to authorize any of the foregoing; or an involuntary
case or other proceeding shall be commenced against the Company seeking
liquidation, reorganization or other relief with respect to it or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect
or seeking the appointment of a trustee, receiver, liquidator, custodian or
other similar official of it or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed or unstayed for a
period of 60 consecutive days.

    

    (e)           Any  material
representation or warranty made by the Company herein or in the Subscription
Agreement shall prove to have been false or incorrect or breached in a material
respect on the date as of which made and the Holder delivers written notice to
the Company of the occurrence thereof; provided
that the Company shall provide notice to the Holder promptly upon becoming aware
of any representation or warranty that it becomes aware is false, incorrect or
that has been breached in a material respect; or

    

    (f)           The Company shall (i) default in any payment of any
amount or amounts of principal of or interest on any indebtedness, the aggregate
principal amount of which indebtedness is in excess of $50,000 or (ii) default in the observance or performance of any
other agreement or condition relating to any indebtedness or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other
event shall occur or condition exist, the effect of which default or other event
or condition is to cause, or to permit the holder or holders or beneficiary or
beneficiaries of such indebtedness to cause with the giving of notice if
required, such indebtedness to become due prior to its stated
maturity.

    

    Declaration
of this Note being immediately due and payable by the Holder may only be made by
written notice to the Company declaring the unpaid balance of the principal
amount of this Note and accrued interest thereon to be due.  Such
declaration shall be deemed given upon the occurrence of any event specified in
clause (d) above.  In the event of a default, all costs of collection,
including reasonable attorneys’ fees, shall be paid by the
Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    With the consent of the Holder, this
Note may be prepaid by the Company in whole or in part at any time or from time
to time without penalty or premium, together, in each case, with interest
accrued on such principal amount to the date of such prepayment.  With
the consent of each Holder that individually or together with its affiliates or
other funds or entities under common management holds more than twenty percent
(20%) of the outstanding principal amount of the Notes (as such term is defined
in that certain Subscription Agreement dated December 3, 2010, pursuant to which
this Note is issued), upon at least 30 days prior written notice to the Holder,
the outstanding principal amount of this Note may be prepaid by the Company in
whole or in part at any time or from time to time, together, in each case, with
interest accrued on such principal amount to the date of such prepayment, so
long as on the redemption date the shares of Common Stock (as defined below)
issuable upon conversion of this Note have been registered under the Securities
Act of 1933, as amended, for resale under an effective registration
statement.

    

    The
obligations of the Company and the Holder set forth herein shall be binding upon
the successors and assigns of each such party, whether or not such successors or
assigns are permitted by the terms hereof.

    

    The obligations of the Company under
this Note are secured by, and the Holder of this Note is entitled to the
benefits of, the (i) the Pledge and Collateral Agency Agreement, dated August
26, 2010, among the Company, Colombia CPF LLC (“CPF”) and Law
Debenture Trust Company, as collateral agent (“Collateral Agent”),
and (ii) the Deed of Pledge, dated as of August 26, 2010, among the Company,
CPF, Energia Andina Santander Resources Coöperatieve U.A. and Collateral Agent,
each as amended and supplemented from time to time.

    

    Subject to and upon compliance with the
provisions of this paragraph, the Holder shall have the right, at any time and
during usual business hours, to convert the outstanding principal balance of
this Note (but not the accrued interest thereon) into fully paid and
non-assessable shares of Common Stock, par value $.001 per share (the “Common
Stock”), of the Company at a rate equal to $2.50 of principal for each share of
Common Stock (the “Conversion Price”), subject to adjustment as provided in
paragraph (c) below.

    

    (a)           In
order to exercise the conversion right, the Holder of this Note shall surrender
this Note at the principal corporate office of the Company, accompanied by
written notice to the Company (with a copy of such notice delivered to Eric
Helige, Esq., Pryor Cashman LLP, 7 Times Square, New York, NY 10036-6569)
stating (i) that the Holder elects to convert the outstanding principal amount
of this Note, or, if less than the entire principal amount of this Note is to be
converted, the portion thereof (a multiple of $1,000) to be converted, and (ii)
the name or names (with addresses) in which the certificate or certificates for
shares of Common Stock issuable on such conversion shall be
issued.  Notes surrendered for conversion shall be accompanied by
proper assignment thereof to the Company or in blank for transfer if the shares
are to be issued in a name other than that of the Holder.  In the
event this Note is converted in part only, upon such conversion the Company
shall execute and deliver to the Holder, at the expense of the Company, a new
Note of authorized denominations in principal amount equal to the unconverted
portion of this Note.  Such conversion shall be deemed to have been
effected immediately prior to the close of business on the date (“Conversion
Date”) on which the Company shall have received both such notice and the
surrendered Note as aforesaid, and at such time the rights of the Holder of this
Note in respect to the principal to be so converted shall cease and the person
or persons in whose name or names any certificate or certificates for shares of
Common Stock shall be issuable upon such conversion shall be deemed to have
become the holder or the Holder of record of the shares represented
thereby.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b)           Within
three (3) business days of the receipt of such notice and the surrender of this
Note as aforesaid, the Company shall issue, at its expense, and shall deliver to
the Holder, or on his written order, (i) a certificate or certificates for the
number of full shares of Common Stock issuable upon the conversion of this Note
(or specified portion thereof), (ii) a certificate or certificates for any
fractional shares of Common Stock issuable upon conversion of this Note (or
specified portion thereof) or, at the Company’s option, cash in lieu of script
for any fraction of a share to which the Holder is entitled upon conversion as
provided in this paragraph, and (iii) a payment by check  or wire
transfer in a amount equal to the accrued interest on the principal amount of
this Note converted.

    

    (c)           The
Conversion Price shall be adjusted as set forth in this section.

    

    (1)           In
the event that the Company shall make any distribution of its assets upon or
with respect to its shares of Common Stock, as a liquidating or partial
liquidating dividend, or other than as a dividend payable out of earnings or any
surplus legally available for dividends under the laws of the state of
incorporation of the Company, the Holder of this Note, upon the exercise of his
right to convert after the record date for such distribution or, in the absence
of a record date, after the date of such distribution, receive, in addition to
the shares subscribed for, the amount of such assets (or, at the option of the
Company, a sum equal to the value thereof at the time of distribution as
determined by the Board of Directors in its reasonable discretion) which would
have been distributed to the Holder if he had exercised his right to convert
immediately prior to the record date for such distribution or, in the absence of
a record date, immediately prior to the date of such
distribution.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (2)           In
case at any time the Company shall subdivide its outstanding shares of Common
Stock into a greater number of shares, the Conversion Price in effect
immediately prior to such subdivision shall be proportionately reduced and
conversely, in case the outstanding shares of Common Stock of the Company shall
be combined into a smaller number of shares, the Conversion Price in effect
immediately prior to such combination shall be proportionately
increased.

    

    (3)           If
any capital reorganization or reclassification of the capital stock of the
Company, or consolidation or merger of the Company with another corporation, or
the sale, transfer or lease of all or substantially all of its assets to another
corporation, shall be effected in such a way that the holder of shares of Common
Stock shall be entitled to receive shares, securities or assets with respect to
or in exchange for shares of Common Stock, then, as a condition of such
reorganization, reclassification, consolidation, merger or sale, the Company and
the Company or such successor or purchasing corporation, as the case may be,
shall execute an amendment to this Note providing that the Holder of this Note
shall have the right thereafter and until the expiration of the period of
convertibility to convert this Note into the kind and amount of shares,
securities or assets receivable upon such reorganization, reclassification,
consolidation, merger or sale by a holder of the number of shares of Common
Stock into which this Note might have been converted immediately prior to such
reorganization, reclassification, consolidation, merger or sale, subject to
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this subparagraph.

    

    Upon any such adjustment of the
Conversion Price pursuant to the provisions of this subparagraph, the number of
shares issuable upon conversion of this Note shall be adjusted to the nearest
full amount by multiplying a number equal to the Conversion Price in effect
immediately prior to such adjustment by the number of shares of Common Stock
issuable upon exercise of this Note immediately prior to such adjustment and
dividing the product so obtained by the adjusted Conversion Price.

    

    (d)           The
Company covenants that it will at all times reserve and keep available out of
its authorized shares of Common Stock, such number of shares of Common Stock as
shall then be deliverable upon the conversion of this Note.  All
shares of Common Stock which shall be deliverable shall be duly and validly
issued and fully paid and non-assessable.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (e)           Whenever
the Conversion Price is adjusted, as herein provided, the Company shall promptly
send to the Holder a certificate of a firm of independent public accountants
(who may be the accountants regularly employed by the Company) selected by its
Board of Directors setting forth the Conversion Price after such adjustment and
setting forth a brief statement of the facts requiring such
adjustment.  Such certificate shall be conclusive evidence of the
correctness of such adjustment.

    

    In the event the Company consummates an
offering of a class of its preferred stock, par value $.001 per share (the
“Preferred Stock”), in which the Company receives gross proceeds of at least
$2.5 million at any time while this Note is outstanding (a “Qualified Equity
Offering”), subject to and upon compliance with the provisions of this
paragraph, the Holder shall have the right, at any time any such shares of
Preferred Stock remain outstanding and during usual business hours, to convert
the outstanding principal balance of this Note (but not the accrued interest
thereon) into fully paid and non-assessable shares of such class of Preferred
Stock at a rate of principal for each share of Preferred Stock equal to the
price per share of Preferred Stock in such offering (the “Preferred Conversion
Price”), subject to adjustment as provided in paragraph (c) below.

    

    (a)           In
order to exercise the conversion right, the Holder of this Note shall surrender
this Note at the principal corporate office of the Company, accompanied by
written notice to the Company (with a copy of such notice delivered to Eric
Helige, Esq., Pryor Cashman LLP, 7 Times Square, New York, NY 10036-6569)
stating (i) that the Holder elects to convert the outstanding principal amount
of this Note, or, if less than the entire principal amount of this Note is to be
converted, the portion thereof (a multiple of $1,000) to be converted, and (ii)
the name or names (with addresses) in which the certificate or certificates for
shares of Preferred Stock issuable on such conversion shall be
issued.  Notes surrendered for conversion shall be accompanied by
proper assignment thereof to the Company or in blank for transfer if the shares
are to be issued in a name other than that of the Holder.  In the
event this Note is converted in part only, upon such conversion the Company
shall execute and deliver to the Holder, at the expense of the Company, a new
Note of authorized denominations in principal amount equal to the unconverted
portion of this Note.  Such conversion shall be deemed to have been
effected immediately prior to the close of business on the date (“Preferred
Conversion Date”) on which the Company shall have received both such notice and
the surrendered Note as aforesaid, and at such time the rights of the Holder of
this Note in respect to the principal to be so converted shall cease and the
person or persons in whose name or names any certificate or certificates for
shares of Preferred Stock shall be issuable upon such conversion shall be deemed
to have become the holder or the Holder of record of the shares represented
thereby.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b)           As
promptly as practicable after the receipt of such notice and the surrender of
this Note as aforesaid, the Company shall issue, at its expense, and shall
deliver to the Holder, or on his written order, (i) a certificate or
certificates for the number of full shares of Preferred Stock issuable upon the
conversion of this Note (or specified portion thereof), (ii) a certificate or
certificates for any fractional shares of Preferred Stock issuable upon
conversion of this Note (or specified portion thereof) or, at the Company’s
option, cash in lieu of script for any fraction of a share to which the Holder
is entitled upon conversion as provided in this paragraph, and (iii) a payment
by check  or wire transfer in a amount equal to the accrued interest
on the principal amount of this Note converted.

    

    (c)           The
Preferred Conversion Price shall be adjusted as set forth in this
section.

    

    (1)           In
the event that the Company shall make any distribution of its assets upon or
with respect to its shares of Preferred Stock of the applicable class, as a
liquidating or partial liquidating dividend, or other than as a dividend payable
out of earnings or any surplus legally available for dividends under the laws of
the state of incorporation of the Company, the Holder of this Note, upon the
exercise of his right to convert after the record date for such distribution or,
in the absence of a record date, after the date of such distribution, receive,
in addition to the shares subscribed for, the amount of such assets (or, at the
option of the Company, a sum equal to the value thereof at the time of
distribution as determined by the Board of Directors in its reasonable
discretion) which would have been distributed to the Holder if he had exercised
his right to convert immediately prior to the record date for such distribution
or, in the absence of a record date, immediately prior to the date of such
distribution.

    

    (2)           In
case at any time the Company shall subdivide its outstanding shares of Preferred
Stock of the applicable class into a greater number of shares, the Preferred
Conversion Price in effect immediately prior to such subdivision shall be
proportionately reduced and conversely, in case the outstanding shares of
Preferred Stock of the applicable class shall be combined into a smaller number
of shares, the Preferred Conversion Price in effect immediately prior to such
combination shall be proportionately increased.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (3)           If
any capital reorganization or reclassification of the capital stock of the
Company, or consolidation or merger of the Company with another corporation, or
the sale, transfer or lease of all or substantially all of its assets to another
corporation, shall be effected in such a way that the holder of shares of
Preferred Stock of the applicable class shall be entitled to receive shares,
securities or assets with respect to or in exchange for shares of Preferred
Stock of such class, then, as a condition of such reorganization,
reclassification, consolidation, merger or sale, the Company or such successor
or purchasing corporation, as the case may be, shall execute an amendment to
this Note providing that the Holder of this Note shall have the right thereafter
and until the expiration of the period of convertibility to convert this Note
into the kind and amount of shares, securities or assets receivable upon such
reorganization, reclassification, consolidation, merger or sale by a holder of
the number of shares of Preferred Stock into which this Note might have been
converted immediately prior to such reorganization, reclassification,
consolidation, merger or sale, subject to adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this
subparagraph.

    

    Upon any such adjustment of the
Preferred Conversion Price pursuant to the provisions of this subparagraph, the
number of shares issuable upon conversion of this Note shall be adjusted to the
nearest full amount by multiplying a number equal to the Preferred Conversion
Price in effect immediately prior to such adjustment by the number of shares of
Preferred Stock issuable upon exercise of this Note immediately prior to such
adjustment and dividing the product so obtained by the adjusted Preferred
Conversion Price.

    

    (d)           The
Company covenants that it will at all times reserve and keep available out of
its authorized shares of Preferred Stock of the applicable class, such number of
shares of Preferred Stock of such class as shall then be deliverable upon the
conversion of this Note.  All shares of Preferred Stock which shall be
deliverable shall be duly and validly issued and fully paid and
non-assessable.

    

    (e)           Whenever
the Preferred Conversion Price is adjusted, as herein provided, the Company
shall promptly send to the Holder a certificate of a firm of independent public
accountants (who may be the accountants regularly employed by the Company)
selected by its Board of Directors setting forth the Preferred Conversion Price
after such adjustment and setting forth a brief statement of the facts requiring
such adjustment.  Such certificate shall be conclusive evidence of the
correctness of such adjustment.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    If the
Company consummates an issuance or sale of any shares of Common Stock, Preferred
Stock or convertible debt securities in a Qualified Equity Offering, as provided
above, and the price per share for such Common Stock or, in the case of
Preferred Stock or convertible debt securities, for which Common Stock is
issuable upon conversion of such Preferred Stock or convertible debt securities
(determined by dividing (x) the total amount received or receivable by the
Company as consideration for the issue or sale of such Common Stock, Preferred
Stock or convertible debt securities, as the case may be, plus the minimum
aggregate amount of additional consideration, if any, payable to the Company
upon the conversion of such Preferred Stock or convertible debt securities, by
(y) the total maximum number of shares of Common Stock issued or in the case of
Preferred Stock or convertible debt securities, issuable upon the conversion of
all such Preferred Stock or convertible debt securities), shall be less than the
Conversion Price or in the case of Preferred Stock, Preferred Conversion Price,
in effect immediately prior to the time of such issue or sale, then the total
maximum number of shares of Common Stock issued or issuable upon conversion
shall (as of the date of the issue or sale of such securities) be deemed to be
outstanding and to have been issued and sold by the Company for such lower price
per share (the “Lower Price”) and the Conversion Price or Preferred Conversion
Price, as applicable, then in effect shall be automatically reduced as of the
date of such transaction to a price equal to the Lower Price.

    

    The Company for itself and its
successors and assigns hereby waives presentment, demand, notice, protest and
all other demands and notices in connection with the delivery, acceptance,
performance or endorsement of this Note, and agrees that this Note shall be
deemed to have been made under, and shall be interpreted and governed by
reference to, the laws of the State of New York.

    

    Except as
expressly agreed in writing by the Holder, no extension of time for payment of
this Note, or any installment hereof, and no alteration, amendment or waiver of
any provision of this Note shall release, discharge, modify, change or affect
the liability of the Company under this Note.

    

    All of the covenants, stipulations,
promises and agreements made by or contained in this Note on behalf of the
undersigned shall bind its successors, whether so expressed or not.

    

    No failure on the part of the Holder to
exercise, and no delay in exercising, any right under this Note shall operate as
a waiver thereof, nor shall any single or partial exercise of such rights
preclude any other or further exercise thereof or the exercise of any other
right.

    

    THE COMPANY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH
THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED BY
APPLICABLE LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO
ANY PREJUDGMENT REMEDY WHICH THE HOLDER OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE
TO USE.

    

    It is the intention of the Company and
the Holder that all payments due hereunder will be treated for accounting and
tax purposes as indebtedness of the Company to the Holder.  Each of
the Company and the Holder agrees to report such payments due hereunder for the
purposes of all taxes in a manner consistent with such intended
characterization.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    If any term or provision of this Note
shall be held invalid, illegal or unenforceable, the validity of all other terms
and provisions herein shall in no way be affected thereby.

    

    This Note
shall be governed by and construed in accordance with the laws of the State of
New York.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the Company has
caused this Note to be signed in its name by its Chief Executive Officer or
Chief Financial Officer as of the date hereinabove set forth.

    

    
      
        
          
            
              	 
      	
                      COLOMBIA
      CLEAN POWER & FUELS, INC.

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	
                      Name:

                    
	 
      	
                      Title:THE
SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED FOR SALE, SOLD OR
OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR IN ACCORDANCE WITH AN
EXEMPTION FROM REGISTRATION UNDER THAT ACT.

    

    WARRANT
TO PURCHASE

    __________
SHARES OF COMMON STOCK OF

    COLOMBIA
CLEAN POWER & FUELS, INC.

    

    This
certifies that _____________, or any party to whom this Warrant is assigned in
accordance with its terms, is entitled to subscribe for and purchase __________
shares of the Common Stock of Colombia Clean Power & Fuels, Inc., a Nevada
corporation, on the terms and conditions of this Warrant.

    

    1.           Definitions.  As
used in this Warrant, the term:

    

    1.1           “Business Day” means
any day other than a Saturday, Sunday, or a day on which banking institutions in
the State of New York are authorized or obligated to be closed by law or by
executive order.

    

    1.2           “Common Stock” means
the Common Stock, par value $.001 per share, of the Corporation.

    

    1.3           “Corporation” means
Colombia Clean Power & Fuels, Inc., a Nevada corporation, or its
successor.

    

    1.4           “Expiration Date”
means June 30, 2015.

    

    1.5           “Holder” means
_________, or any party to whom this Warrant is assigned in accordance with its
terms.

    

    1.6           “1933 Act” means the
Securities Act of 1933, as amended.

    

    1.7           “Warrant” means this
Warrant and any warrants delivered in substitution or exchange for this Warrant
in accordance with the provisions of this Warrant.

    

    1.8           “Warrant Price” means
$0.01 per share of Common Stock, as such amount may be adjusted pursuant to
Section 4 hereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    2.           Exercise of
Warrant.  (a)  At any time before the Expiration
Date, the Holder may exercise the purchase rights represented by this Warrant,
in whole or in part, by surrendering this Warrant (with a duly executed
subscription in the form attached) at the Corporation’s principal corporate
office (with a copy of such notice delivered to Eric Helige, Esq., Pryor Cashman
LLP, 7 Times Square, New York, NY 10036-6569)) and by paying the Corporation, by
certified or cashier’s check, the aggregate Warrant Price for the shares of
Common Stock being purchased.

    

    (b)           This
Warrant may also be exercised by the Holder through a cashless exercise, as
described in this Section 2(b). This Warrant may be exercised, in whole or in
part, by (i) the delivery to the Company of a duly executed exercise form
specifying the number of shares of Common Stock issuable upon exercise of this
Warrant to be applied to such exercise (with a copy of such form delivered to
Eric Helige, Esq., Pryor Cashman LLP, 7 Times Square, New York, NY 10036-6569),
and (ii) the surrender to a common carrier for overnight delivery to the
Company, or as soon as practicable following the date the Holder delivers the
exercise form to the Company, of this Warrant (or an indemnification undertaking
with respect to this Warrant in the case of its loss, theft or destruction). The
number of shares of Common Stock to be issued upon exercise of this Warrant
pursuant to this Section 2 (b) shall be computed as of the date of delivery of
this Warrant to the Company using the following formula:

    

    
      
        	
                X
      =

              	
                Y(A-B)

              
	 
      	
                A

              

      

    

     

    0           where:

     

    
      
        
          	
                  X  =

                	
                  the
      number of shares of Common Stock to be issued to the Holder under this
      Section 2(b);

                
	
                  Y  =

                	
                  the
      number of shares of Common Stock issuable upon exercise of this Warrant
      identified in the exercise form as being applied to the subject
      exercise;

                
	
                  A  =

                	
                  the
      Current Market Price on such date; and

                
	
                  B  =

                	
                  the
      Exercise Price on such
date.

                

        

      

    

    0

    For
purposes of this Section 2(b), the “Current Market Price”
per share of Common Stock on any day shall mean: (i) if the principal
trading market for such securities is a national or regional securities
exchange, the closing price on such exchange on such day; or (ii) if (i) is
not applicable, and if bid and ask prices for shares of Common Stock are
reported in the over-the-counter market by NASDAQ (or, if not so reported, by
the National Quotation Bureau), the average of the high bid and low ask prices
so reported on such day. Notwithstanding the foregoing, if there is no reported
closing price or bid and ask prices, as the case may be, for the day in
question, then the Current Market Price shall be determined as of the latest
date prior to such day for which such closing price or bid and ask prices, as
the case may be, are available, unless such securities have not been traded on
an exchange or in the over-the-counter market for 30 or more days immediately
prior to the day in question, in which case the Current Market Price shall be
determined mutually by the Board of Directors of the Company and the Holder or,
failing such agreement, at the Company’s expense by an appraiser selected by the
Board of Directors of the Company and reasonably acceptable to the
Holder.  Any determination of Current Market Price by an appraiser
shall be based on a fair valuation of the Company as an entity without regard to
any minority or illiquidity discounts.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (c)           Notwithstanding
the provisions of Section 2(a) and 2(b) hereof, the Holder may not exercise the
purchase rights represented by this Warrant until the Corporation consummates
its proposed reverse stock split of the Common Stock.  The Corporation
hereby covenants and agrees with the Holder that it will take all appropriate
action necessary to consummate, and shall consummate, such reverse stock split
on or prior to August 31, 2010.

    

    2.1           Delivery of
Certificates.  Within three (3) business days after each
exercise of the purchase rights represented by this Warrant, the Corporation
shall deliver a certificate for the shares of Common Stock so purchased to the
Holder and, unless this Warrant has been fully exercised or expired, a new
Warrant representing the balance of the shares of Common Stock subject to this
Warrant.

    

    2.2           Effect of
Exercise.  The person entitled to receive the shares of Common
Stock issuable upon any exercise of the purchase rights represented by this
Warrant shall be treated for all purposes as the holder of such shares of record
as of the close of business on the date of exercise.

    

    2.3           Issue
Taxes.  The Corporation shall pay all issue and other taxes
that may be payable in respect of any issue or delivery to the Holder of shares
of Common Stock upon exercise of this Warrant.

    

    3.           Stock Fully Paid;
Reservation of Shares.  The Corporation covenants and agrees
that all securities that it may issue upon the exercise of the rights
represented by this Warrant will, upon issuance, be fully paid and nonassessable
and free from all taxes, liens and charges.  The Corporation further
covenants and agrees that, during the period within which the Holder may
exercise the rights represented by this Warrant, the Corporation shall at all
times have authorized and reserved for issuance enough shares of its Common
Stock or other securities for the full exercise of the rights represented by
this Warrant.  The Corporation shall not, by an amendment to its
Articles of Incorporation or through reorganization, consolidation, merger,
dissolution, issue or sale of securities, sale of assets or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant.

    

    4.           Adjustments.  The
Warrant Price and the number of shares of Common Stock that the Corporation must
issue upon exercise of this Warrant shall be subject to adjustment in accordance
with Sections 4.1 through 4.3.

    

    4.1           Adjustment to Warrant Price
for Combinations or Subdivisions of Common Stock.  If the
Corporation at any time or from time to time after the date hereof (1) declares
or pays, without consideration, any dividend on the Common Stock payable in
Common Stock; (2) creates any right to acquire Common Stock for no
consideration; (3) subdivides the outstanding shares of Common Stock (by stock
split, reclassification or otherwise); or (4) combines or consolidates the
outstanding shares of Common Stock, by reclassification or otherwise, into a
lesser number of shares of Common Stock, the Corporation shall proportionately
increase or decrease the Warrant Price, as appropriate.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4.2           Adjustments for
Reclassification and Reorganization.  If the Common Stock
issuable upon exercise of this Warrant changes into shares of any other class or
classes of security or into any other property for any reason other than a
subdivision or combination of shares provided for in Section 4.1, including
without limitation any reorganization, reclassification, merger or
consolidation, the Corporation shall take all steps necessary to give the Holder
the right, by exercising this Warrant, to purchase the kind and amount of
securities or other property receivable upon any such change by the owner of the
number of shares of Common Stock subject to this Warrant immediately before the
change.

    

    4.3           Spin
Offs.  If the Corporation spins off any subsidiary by
distributing to the Corporation's shareholders as a dividend or otherwise any
stock or other securities of the subsidiary, the Corporation shall reserve until
the Expiration Date enough of such shares or other securities for delivery to
the Holders upon any exercise of the rights represented by this Warrant to the
same extent as if the Holders owned of record all Common Stock or other
securities subject to this Warrant on the record date for the distribution of
the subsidiary's shares or other securities.

    

    4.4           Certificates as to
Adjustments.  Upon each adjustment or readjustment required by
this Section 4, the Corporation at its expense shall promptly compute such
adjustment or readjustment in accordance with this Section, cause independent
public accountants selected by the Corporation to verify such computation and
prepare and furnish to the Holder a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based.

    

    5.           Fractional
Shares.  The Corporation shall not issue any fractional shares
in connection with any exercise of this Warrant.

    

    6.           Dissolution or
Liquidation.  If the Corporation dissolves, liquidates or winds
up its business before the exercise or expiration of this Warrant, the Holder
shall be entitled, upon exercising this Warrant, to receive in lieu of the
shares of Common Stock or any other securities receivable upon such exercise,
the same kind and amount of assets as would have been issued, distributed or
paid to it upon any such dissolution, liquidation or winding up with respect to
such shares of Common Stock or other securities, had the Holder been the holder
of record on the record date for the determination of those entitled to receive
any such liquidating distribution or, if no record is taken, upon the date of
such liquidating distribution.  If any such dissolution, liquidation
or winding up results in a cash distribution or distribution of property which
the Corporation's Board of Directors determines in good faith to have a cash
value in excess of the Warrant Price provided by this Warrant, then the Holder
may, at its option, exercise this Warrant without paying the aggregate Warrant
Price and, in such case, the Corporation shall, in making settlement to Holder,
deduct from the amount payable to Holder an amount equal to such aggregate
Warrant Price.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    7.           Transfer and
Exchange.

    

    7.1           Transfer.  Subject
to Section 7.3, the Holder may transfer all or part of this Warrant at any time
on the books of the Corporation at its principal office upon surrender of this
Warrant, properly endorsed.  Upon such surrender, the Corporation
shall issue and deliver to the transferee a new Warrant or Warrants representing
the Warrants so transferred.  Upon any partial transfer, the
Corporation shall issue and deliver to the Holder a new Warrant or Warrants with
respect to the Warrants not so transferred.

    

    7.2           Exchange.  The
Holder may exchange this Warrant at any time at the principal office of the
Corporation for Warrants in such denominations as the Holder may designate in
writing.  No such exchanges will increase the total number of shares
of Common Stock or other securities that are subject to this
Warrant.

    

    7.3           Securities Act of
1933.  By accepting this Warrant, the Holder agrees that this
Warrant and the shares of the Common Stock issuable upon exercise of this
Warrant may not be offered or sold except in compliance with the 1933 Act, and
then only with the recipient's agreement to comply with this Section 7 with
respect to any resale or other disposition of such securities.  The
Corporation may make a notation on its records in order to implement such
restriction on transferability.

    

    8.           Loss or
Mutilation.  Upon the Corporation's receipt of reasonably
satisfactory evidence of the ownership and the loss, theft, destruction or
mutilation of this Warrant and (in the case of loss, theft or destruction) of a
reasonably satisfactory indemnity or (in the case of mutilation) upon surrender
and cancellation of this Warrant, the Corporation shall execute and deliver a
new Warrant to the Holder.

    

    9.           Successors. All the
covenants and provisions of this Warrant shall bind and inure to the benefit of
the Holder and the Corporation and their respective successors and
assigns.

    

    10.           Notices. All notices
and other communications given pursuant to this Warrant shall be in writing and
shall be deemed to have been given when personally delivered or when mailed by
prepaid registered, certified or express mail, return receipt
requested.  Notices should be addressed as follows:

    

    (a)           If
to Holder, then to:

    

    [_______________]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (b)

            	
              If
      to the Corporation, then to:

            

    

    

    Colombia
Clean Power & Fuels, Inc.

    4265 San
Felipe Street, Suite 1100

    Houston,
Texas  77027

    Attention:  Mr.
Edward Mooney

        Chief
Executive Officer

    

    Such
addresses for notices may be changed by any party by notice to the other party
pursuant to this Section 10.

    

    11.           Amendment.  This
Warrant may be amended only by an instrument in writing signed by the
Corporation and the Holder.

    

    12.           Construction of
Warrant.  This Warrant shall be construed as a whole and in
accordance with its fair meaning.  A reference in this Warrant to any
section shall be deemed to include a reference to every section the number of
which begins with the number of the section to which reference is
made.  This Warrant has been negotiated by both parties and its
language shall not be construed for or against any party.

    

    13.           Law
Governing.  This Warrant is executed, delivered and to be
performed in the State of New York and shall be construed and enforced in
accordance with and governed by the New York law without regard to any conflicts
of law or choice of forum provisions.

    

    Dated as
of _____________

    

    
      
        
          	 
      	
                  COLOMBIA
      CLEAN POWER & FUELS, INC.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	 
      	
                  Name:

                
	 
      	 
      	
                  Title:

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Colombia
Clean Power & Fuels, Inc.

    

    EXERCISE
FORM

    

    (To be completed and signed only
upon exercise of the Warrants)

    

    To:         Colombia
Clean Power & Fuels, Inc.

    4265 San
Felipe Street, Suite 1100

    Houston,
Texas  77027

    

    Attention:
Secretary

    

    The
undersigned hereby exercises his or its rights to purchase ___________ Warrant
Shares covered by the within Warrant and tenders payment herewith in the amount
of $_________ by [tendering cash or delivering a certified check or bank
cashier’s check, payable to the order of the Company] [surrendering ______
shares of Common Stock received upon exercise of the attached Warrant, which
shares have a Current Market Price equal to such payment] in accordance with the
terms thereof, and requests that certificates for such securities be issued in
the name of, and delivered to:

    

    
      
        
          
            
              	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                      (Print
      Name, Address and Social Security

                    
	 
      	
                      or
      Tax Identification
Number)

                    

            

          

        

      

    

    

    and, if
such number of shares of Common Stock issuable upon such exercise shall not be
all the shares of Common Stock covered by the within Warrant, that a new Warrant
for the balance of the shares of Common Stock covered by the within Warrant be
registered in the name of, and delivered to, the undersigned at the address
stated below.

    

    
      
        
          
            
              
                
                  	
                          Dated:
      ____________, ________

                        	
                          Name:

                        	 
      
	 
      	 
      	
                          (Please
      Print)

                        
	 
      	 
      	 
      
	 
      	
                          Address:

                        	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                          (Signature)

                        

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              	 
      	 
      	 
      	 
      
	 
      	
                      (City)

                    	
                      (State)

                    	
                      (Zip)

                    

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    FORM
OF ASSIGNMENT

    

    FOR VALUE
RECEIVED, the undersigned registered Holder of this Warrant sells, assigns and
transfers unto the Assignee named below all of the rights of the undersigned
under the Warrant, with respect to the number of shares of Common Stock set
forth below (the “Transfer”):

    

    
      
        
          
            
              	
                      Name of Assignee

                    	 	
                      Address

                    	 	
                      No. of Shares

                    
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      

            

          

        

      

    

    

    The
undersigned irrevocably constitutes and appoints  as the
undersigned’s attorney-in-fact, with full power of substitution, to make the
transfer on the books of Colombia Clean Power & Fuels, Inc.

    

    Dated:

    

    
      
        	 
      	 
      
	 
      	
                (Signature)

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