Document:

Exhibit 10.1

 

CONSULTING AGREEMENT

 

This Consulting Agreement
(“Agreement”), dated January 4, 2019 and effective on January 5, 2019 (the “Effective Date”), is by and
between Dr. Roberto Ruiz, whose address is 126 247th Avenue SE, Sammamish, Washington 98074 (the “Consultant”),
and ClearSign Combustion Corporation, whose address is 12870 Interurban Avenue South, Seattle, Washington 98168 (the “Company”),
in reference to the following:

 

RECITALS

 

A.           The
Consultant has been the Company’s Chief Operating Officer since February 2016 and has substantial experience and knowledge
regarding the Company’s business and operations.

 

B.           The
Consultant retired from active employment with the Company at the close of business on January 4, 2019 and resigned from the offices
he held on that date.

 

C.           The
Company intends to hire a Chief Executive Officer (the “Successor CEO”) to replace Stephen E. Pirnat, who retired on
December 31, 2018.

 

D.           The
Company wishes to retain the Consultant for the purpose of, and the Consultant has agreed to render services to the Company for
the purpose of, assisting the Successor CEO as he transitions into his new duties and responsibilities, as well as to provide the
Company with the Consultant’s expertise whenever requested.

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Consultant agree as follows:

 

AGREEMENT

 

1.            Term.
Subject to Section 5 of this Agreement, the term of this Agreement will begin on the Effective Date and will end on December 31,
2020 (the “Term”).

 

2.            Duties
of Consultant. As requested in writing, including by e-mail, by the interim Chief Executive Officer or the Successor CEO,
the Consultant will provide services relating to the business and operations of the Company including, but not limited to, assistance
with the transition of responsibilities to the Successor CEO, and any other services previously performed by the Consultant during
his tenure as the Company’s Chief Operating Officer (collectively, the “Services”), including on-site business
development activities. During the Initial Consulting Period (as defined below) the Company will continue to provide the Consultant
with the office he occupied during his employment with the Company and the Consultant will continue to use the e-mail address roberto.ruiz@clearsign.com.

 

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3.            Compensation.
For the period beginning on January 5, 2019 and ending on March 31, 2019 (the “Initial Consulting Period”) the Consultant
shall provide the Services whenever asked (subject to the Non-Work Days set forth below) for up to 45 days and shall be paid a
total fee of $70,454.55 (the “Compensation”). The Compensation shall be payable in installments of $23,484.85 each,
which payments shall be made at the end of each month of the Initial Consulting Period. For Services rendered during the Initial
Consulting Period in excess of 45 days, the Consultant shall be paid the sum of $2,000 per day (the “Daily Rate”).
During the Initial Consulting Period, with the exception of the Non-Work Days, the Consultant must provide the Services as requested
by the Company. Following the Initial Consulting Period and throughout the remainder of the Term, if the Company requires additional
services from the Consultant and the Consultant agrees to provide such additional services, the Consultant will provide such services
at the Daily Rate. In addition to the Compensation and the Daily Rate, the Company shall reimburse the Consultant’s expenses
at cost. Any aggregated expenses (for example, airfare, taxi, hotel and meals) greater than $1000 must be previously authorized
by the Company. Daily Rate compensation and the Consultant’s expenses shall be payable
within 10 business days of presentation of an invoice detailing the hours/days worked and expenses. Irrespective of the foregoing,
the Company agrees that it shall not require the Consultant to provide the Services on January 11 or 14, 2019 or on February 25,
26 and 27, 2019 (collectively, the “Non-Work Days”).

 

4.            Nondisclosure.

 

4.1            Access
to Confidential Information. The Consultant agrees that during the Term, the Consultant will have access to and become acquainted
with confidential proprietary information (“Confidential Information”) which is owned by the Company and is regularly
used in the operation of the Company’s business. The Consultant agrees that the term “Confidential Information”
as used in this Agreement is to be broadly interpreted and includes (i) information that has, or could have, commercial value for
the business in which the Company is engaged, or in which the Company may engage at a later time, and (ii) information that, if
disclosed without authorization, could be detrimental to the economic interests of the Company. The Consultant agrees that the
term “Confidential Information” includes, without limitation, any patent, patent application, copyright, trademark,
trade name, service mark, service name, “know-how,” negative “know-how,” trade secrets, customer and supplier
identities, characteristics and terms of agreements, details of customer or contracts, pricing policies, operational methods, marketing
plans or strategies, product development techniques or plans, business acquisition plans, science or technical information, ideas,
discoveries, designs, computer programs (including source codes), financial forecasts, unpublished financial information, budgets,
processes, procedures, formulae, improvements or other proprietary or intellectual property of the Company, whether or not in written
or tangible form, and whether or not registered, and including all memoranda, notes, summaries, plans, reports, records, documents
and other evidence thereof. The Consultant acknowledges that all Confidential Information, whether prepared by the Consultant or
otherwise acquired by the Consultant in any other way, shall remain the exclusive property of the Company. The term “Confidential
Information” does not include (i) any information known to the Consultant prior to disclosure by the Company or its representatives,
(ii) any information which becomes available to the Consultant on a non-confidential basis from a source other than the Company
who is not bound by a confidentiality agreement with, or any other contractual, legal or fiduciary obligation of confidentiality
to, the Company or any related party with respect to such information and (iii) any information which is or becomes generally available
to the public other than as a result of a disclosure by the Consultant in breach of this Agreement. In the event that the Consultant
receives a request to disclose all or any part of the Confidential Information under the terms of a valid and effective subpoena
or order issued by a court of competent jurisdiction the Consultant agrees to immediately notify the Company of the existence,
terms and circumstances surrounding such a request. The Company agrees to assume, at its sole charge and expense, any costs that
are the direct result of actions taken at the direction or request of the Company (and, if any payments are made by the Consultant,
to promptly reimburse the Consultant for such payments), including any fees and disbursements to legal counsel that the Consultant
incurs.

 

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4.2            No
Unfair Use by Consultant. The Consultant promises and agrees that the Consultant (which shall include his advisors, consultants,
contractors and affiliates) shall not misuse, misappropriate, or disclose in any way to any person or entity any of the Company’s
Confidential Information, either directly or indirectly, nor will the Consultant use the Confidential Information in any way or
at any time except as required in the course of the Consultant’s business relationship with the Company. The Consultant agrees
that the sale or unauthorized use or disclosure of any of the Company’s Confidential Information constitutes unfair competition.
The Consultant promises and agrees not to engage in any unfair competition with the Company and will take measures that are appropriate
to prevent his advisors, consultants, contractors or affiliates from engaging in unfair competition with the Company.

 

4.3            Obligations
Survive Agreement. The Consultant’s obligations under this Section 4 shall survive for a period of five years after the
expiration or termination of this Agreement.

 

5.            Termination;
Return of Company Property.

 

5.1            Automatic
Termination. This Agreement will terminate automatically upon the expiration of the Term (unless otherwise extended by written
agreement between the Consultant and the Company) or upon the death or disability of the Consultant, provided that as a result
of the disability the Consultant is no longer able to perform the Services required by this Agreement for a period of at least
15 days.

 

5.2            Return
of Company Property. Upon the termination of the Initial Consulting Period, the Consultant shall immediately transfer to the
Company all files (including, but not limited to, electronic files), records, documents, drawings, specifications, equipment and
similar items in his possession or the possession of his advisors, consultants, contractors and affiliates relating to the business
of the Company or its Confidential Information (including the work product of the Consultant created pursuant to this Agreement);
provided, however, that once the Company’s Confidential Information and programs licensed to the Company are deleted from
the hard drive by the Company’s IT technician, the Consultant will assume ownership of the Apple laptop computer purchased
by the Company for use by the Consultant, including any personal files stored in the hard drive.

 

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6.            Status
of Consultant. The Consultant understands and agrees that he is not an employee of the Company and that he is not entitled
to receive employee benefits from the Company, including, but not limited to, sick leave, vacation, retirement or death benefits.
The Consultant shall be responsible for providing, at the Consultant’s expense and in the Consultant’s name, disability,
worker’s compensation or other insurance as well as licenses and permits usual or necessary for conducting the Services hereunder.
Furthermore, the Consultant shall pay, when and as due, any and all taxes incurred as a result of the Consultant’s compensation
hereunder, including estimated taxes, and shall provide the Company with proof of said payments, upon demand. The Consultant hereby
agrees to indemnify the Company for any claims, losses, costs, fees, liabilities, damages or injuries suffered by the Company arising
out of the Consultant’s breach of this Section 6.

 

7.            Representations
by Consultant. The Consultant represents that the Consultant has the qualifications and ability to perform the Services
in a professional manner, without the advice, control, or supervision of the Company.

 

8.            Work
for Hire. The Consultant shall perform the Services as “Work for Hire” where copyright, title, patent, ownership
and other proprietary rights of all material produced shall be retained by the Company and its assignees.

 

9.            Notices.
Unless otherwise specifically provided in this Agreement, all notices or other communications (collectively and severally called
“Notices”) required or permitted to be given under this Agreement, shall be in writing, and shall be given by: (A)
personal delivery (which form of Notice shall be deemed to have been given upon delivery), (B) by telegraph or by private airborne/overnight
delivery service (which forms of Notice shall be deemed to have been given upon confirmed delivery by the delivery agency), or
(C) by electronic (e-mail) delivery (which form of Notice shall be deemed delivered upon confirmed transmission or confirmation
of receipt). Notices shall be addressed to the addresses set forth below, or to such other address as the receiving party shall
have specified most recently by like Notice, with a copy to the other party.

 

If to the Company:

 

ClearSign Combustion Corporation

12870 Interurban Avenue South

Seattle, Washington 98168

Attn.: Chief Financial Officer

E-Mail: brian.fike@clearsign.com

 

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If to the Consultant:

 

Dr. Roberto Ruiz

126 247th Avenue SE

Sammamish, Washington 98074

E-Mail: bruin79gopher86@gmail.com

 

10.          Choice
of Law and Venue. This Agreement shall be governed according to the laws of the state of Washington. Venue for any legal
or equitable action between the Company and the Consultant which relates to this Agreement shall be in the county of King in the
State of Washington.

 

11.          Entire
Agreement. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto
with respect to the Services to be rendered by the Consultant to the Company and contains all of the covenants and agreements between
the parties with respect to the Services to be rendered by the Consultant to the Company in any manner whatsoever. Each party to
this agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made
by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or
promise not contained in this Agreement shall be valid or binding on either party.

 

12.          Amendment/Waiver.
Except as expressly provided otherwise herein, neither this Agreement nor any of the terms, provisions, obligations or rights contained
herein, may be amended, modified, supplemented, augmented, rescinded, discharged or terminated (other than by performance), except
by a written instrument or instruments signed by all of the parties to this Agreement. No waiver of any breach of any term, provision
or agreement contained herein, or of the performance of any act or obligation under this Agreement, or of any extension of time
for performance of any such act or obligation, or of any right granted under this Agreement, shall be effective and binding unless
such waiver shall be in a written instrument or instruments signed by each party claimed to have given or consented to such waiver
and each party affected by such waiver.

 

13.          Counterparts.
This Agreement may be executed manually or by facsimile signature in two or more counterparts, each of which shall be deemed an
original, and all of which together shall constitute but one and the same instrument.

 

14.          Arbitration/Equitable
Relief.  The parties hereby agree that all controversies, claims and matters of difference shall be resolved by binding
arbitration before JAMS located in Seattle, Washington according to the rules and practices of JAMS from time-to-time in force;
provided however that the parties hereto reserve their rights to seek and obtain injunctive or other equitable relief from a court
of competent jurisdiction, without waiving the right to compel such arbitration pursuant to this Section. The arbitrator shall
apply Washington law in rendering a decision. The Consultant acknowledges that irreparable injury will result to the Company from
the Consultant’s violation of any of the terms of Section 4 (Nondisclosure) of this Agreement. The Consultant expressly agrees
that the Company shall be entitled, in addition to damages and any other remedies provided by law, to an injunction or other equitable
remedy respecting such violation or continued violation.

 

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15.          Severability.
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be determined
to be invalid, illegal or unenforceable under present or future laws effective during the Term, then and, in that event: (A) the
performance of the offending term or provision (but only to the extent its application is invalid, illegal or unenforceable) shall
be excused as if it had never been incorporated into this Agreement, and, in lieu of such excused provision, there shall be added
a provision as similar in terms and amount to such excused provision as may be possible and be legal, valid and enforceable, and
(B) the remaining part of this Agreement (including the application of the offending term or provision to persons or circumstances
other than those as to which it is held invalid, illegal or unenforceable) shall not be affected thereby and shall continue in
full force and effect to the fullest extent provided by law.

 

16.          Preparation
of Agreement. It is acknowledged by each party that such party either had separate and independent advice of counsel or
the opportunity to avail itself or himself of same. In light of these facts it is acknowledged that no party shall be construed
to be solely responsible for the drafting hereof, and therefore any ambiguity shall not be construed against any party as the alleged
draftsman of this Agreement.

 

17.          No
Assignment of Rights or Delegation of Duties by Consultant; Company’s Right to Assign. The Consultant’s rights
and benefits under this Agreement are personal to him and therefore no such right or benefit shall be subject to voluntary or involuntary
alienation, assignment or transfer. The Company may assign its rights and delegate its obligations under this Agreement to any
other person or entity.

 

18.          Electronically
Transmitted Documents. If a copy or counterpart of this Agreement is originally executed and such copy or counterpart is
thereafter transmitted electronically by facsimile or similar device, such facsimile document shall for all purposes be treated
as if manually signed by the party whose facsimile signature appears.

 

[Signatures appear on next page.]

 

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WHEREFORE, the parties have executed this
Agreement on the date first written above.

 

	 	“Consultant”
	 	 	 
	 	By:	/s/ Dr. Roberto Ruiz
	 	 	Dr. Roberto Ruiz
	 	 
	 	“Company”
	 	 
	 	ClearSign Combustion Corporation
	 	 	 
	 	By:	/s/ Robert T. Hoffman Sr.
	 	 	Robert T. Hoffman Sr.
	 	 	Chairperson of the Board

 

    	 	7Exhibit 10.2

 

CONFIDENTIAL SEPARATION AGREEMENT

AND

GENERAL RELEASE

 

		1.	SETTLEMENT AND RELEASE

 

This SEPARATION
AGREEMENT AND GENERAL RELEASE (“Agreement”) is between Roberto Ruiz (“Employee” or “you”) and
ClearSign Combustion Corporation (“ClearSign” or “Employer”).

 

		2.	RECITALS

 

a.           Employee
is an at-will employee of ClearSign.

 

b.           Employee
has decided to exercise his right to terminate Employee’s employment with ClearSign.

 

c.           To
avoid uncertainty, Employer and Employee desire to settle fully and finally resolve all matters between them arising out of or
related to Employee’s employment with, compensation during, and separation from Employer on the terms and conditions set
forth herein as of the date of this Agreement.

 

d.           This
Agreement effects the settlement of any disputes between Employer and Employee, and nothing contained herein should be construed
as an admission by Employer of any liability of any kind with respect thereto.

 

e.           Employer
and Employee expressly recognize that confidentiality of the terms of this Agreement is of the essence, and is a material part
of this Agreement.

 

		3.	SEPARATION FROM EMPLOYMENT

 

The effective date
of Employee’s termination of employment with the Employer is January 4, 2019 (the “Separation Date”).

 

		4.	SEVERANCE CONSIDERATION

 

a.           As
consideration for the release set forth herein, and provided that Employee does not revoke this Agreement within the revocation
period referred to at Section 5(b)(iii) herein, ClearSign will reimburse Employee for the cost of health insurance premiums paid
by Employee for the months of January 2019, February 2019 and March 2019 (the “Severance Amount”). Payment of the Severance
Amount will be made within 5 business days following the end of each month.

 

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        Employer

        Initials
	 	
        Employee

        Initials

 

    	 	 	 

     

    

 

b.           No
other benefits will be made available to Employee after the Separation Date except as provided herein, or by applicable law.

 

c.           Employee
is solely responsible for the payment of, and therefore promises to pay, any taxes, penalties, or other costs assessed that are
associated with the Severance Consideration. The Released Parties, as defined in Section 5 herein, have no duty with respect to
such taxes, penalties or other costs.

 

d.           Employee
will be paid his wages through the Separation Date less applicable withholdings and deductions through ClearSign’s ordinary
semi-monthly payroll system.

 

e.           Employee
is reminded that his outstanding stock option agreements (the “Award Agreements”) are as summarized on Exhibit
A and that, with the contemporaneous execution of a consulting agreement between Employee and ClearSign (the “Consulting
Agreement”) the Continuous Service provisions of the Award Agreements shall be satisfied. The right to purchase the common
stock of ClearSign pursuant to the Award Agreements will expire 3 months from the termination of the Consulting Agreement for any
reason, unless extended by other means. For the avoidance of doubt, nothing herein shall limit or modify Employee’s or ClearSign’s
respective rights and obligations under the Award Agreements detailed in Exhibit A, which shall each remain
in force unless any such Award Agreement expires or is terminated in accordance with its terms

 

		5.	RELEASE OF ALL CLAIMS

 

a.           CONSIDERATION
FOR RELEASE

 

Employee acknowledges
that Employee has received all compensation owed or to be owed to Employee for Employee’s employment through and including
January 4, 2019.

 

Both parties agree
that the monies and other benefits to be provided to Employee hereunder as outlined in Section 4 are in excess of compensation
to which Employee would otherwise be entitled. As such, it is agreed that such monies and benefits provide full and adequate consideration
for Employee’s various representations and releases contained herein.

 

	 	 	 	BGF	 	RR
	 	 	 	
        Employer

        Initials
	 	
        Employee

        Initials

 

    	 	 	 

     

    

 

b.           EMPLOYEE
RELEASE

 

i.           For
good and valuable consideration as described herein, the receipt and sufficiency of which are hereby acknowledged, Employee, individually
and on behalf of Employee’s representatives, heirs, successors and assigns, hereby releases and absolutely forever discharges
ClearSign, its predecessors, successors, parents, partners, subsidiaries, affiliates, agents, assigns, insurers, representatives,
officers, directors, principals, employees, shareholders, and attorneys, from the past, present and future (collectively, the “Released
Parties”), of and from any and all claims, demands, debts, liabilities, obligations, and causes of actions of every kind
and nature whatsoever, whether now known or unknown, suspected or unsuspected, which Employee may have or ever had, including without
limitation those arising from or relating to Employee’s employment with ClearSign, contracts with ClearSign, termination
of employment with ClearSign, or Employee’s efforts to find subsequent employment. This release includes, but is not limited
to, any claims, demands, causes of action, or liabilities arising under (a) Title VII of the Civil Rights Act of 1964 (race, color,
religion, maternity or pregnancy, sex and national origin discrimination); (b) 42 U.S.C. §1981 (race discrimination); (c)
29 U.S.C. §§621-634 (age discrimination); (d) 29 U.S.C. §206(d)(1) (equal pay); (e) Executive Order 11246 (race,
color, religion, sex and national original); (f) Executive Order 11141, (age discrimination); (g) Older Workers Benefit Protection
Act of 1990 (age discrimination); (h) §503 of the Rehabilitation Act of 1973 (disabilities discrimination); (i) the Civil
Rights Act of 1991 (discrimination), (j) the Age Discrimination in Employment Act of 1967 (“ADEA”); (k) the Family
and Medical Leave Act; (l) Washington State Law Against Discrimination, Revised Code of Washington section 49.60; (m) claims with
any division of the Washington State Department of Labor and Industries, (n) Washington Industrial Safety and Health Act; (o) Washington
Family Care Act; (p-o) Seattle Municipal Code, SMC 14.04.030-0,40 (discrimination) (q) any other federal, state or local laws or
regulations prohibiting employment discrimination, harassment or retaliation; and (r) any amendments or additions to any of the
federal, state or local laws or regulations mentioned above. This waiver and release also includes, but is not limited to, any
claims, demands, causes of action, or liabilities arising under or in relation to any oral or written representations or statements
or under any state, local or federal law regulating wages, hours, compensation or employment or any claim for wrongful discharge,
breach of contract, breach of the implied covenant of good faith and fair dealing, intentional or negligent infliction of emotional
distress, or defamation. For the avoidance of doubt, this release is not intended to modify or terminate surviving contractual
and statutory rights and obligations, as specified in Sections 4(e) and 7 herein.

 

ii.          It
is understood and agreed that this Section 5(b) is intended to be a full and final release covering all known as well as all unknown
or unanticipated injuries, debts, claims or damages, of any kind, arising from acts, omissions or events prior to the Separation
Date. Employee waives any and all rights or benefits which Employee may now have under the terms of any statute or law that purports
to limit such a release.

 

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        Employer

        Initials
	 	
        Employee

        Initials

 

    	 	 	 

     

    

 

iii.         Employee
acknowledges that Employee is knowingly and voluntarily waiving and releasing any rights Employee may have under the ADEA. Employee
also acknowledges that the Severance Consideration provided for in Section 4 herein is in addition to anything of value to which
Employee is otherwise entitled and constitutes sufficient consideration for the waiver and release herein. Employee further acknowledges
that Employee has been advised by this writing, as required by the Older Workers’ Benefit Protection Act, that: (a) Employee’s
waiver and release does not apply to any rights or claims that may arise after the execution of this Agreement; (b) Employee should
consult with an attorney prior to executing this Agreement; (c) Employee has twenty-one (21) days to consider this Agreement (although
Employee may by Employee’s own choice execute this Agreement earlier); (d) under the ADEA, Employee has seven (7) days following
the date of his execution of this Agreement by the parties to revoke the Agreement; and (e) this Agreement shall not be effective
until the date upon which such revocation period has expired. If Employee has not executed this Agreement and delivered his executed
signature page by hand delivery, fax or email of a PDF to ClearSign’s Chief Financial Officer and/or Chief Executive Officer
by the expiration of the twenty-one (21)-day consideration period referenced in this Section 5(b)(iii), the offer of the Severance
Consideration in this Agreement will expire, and Employee will have no right or claim to the Severance Consideration or any portion
of the Severance Consideration. Employee may revoke this Agreement only by giving ClearSign written notice of Employee’s
revocation of this Agreement, by email to the interim CFO, Brian Fike, at brian.fike@clearsign.com transmitted by the close of
business on the seventh (7th) day following the date of Employee’s execution of this Agreement.

 

		6.	NO OTHER ACTIONS

 

Employee represents
that Employee has not filed, and will not file, any complaints, charges, or grievances against any or all of the Released Parties
with any city, county, state, or federal agency or court, whether or not arising out of or related to his or her employment with,
compensation during, and separation from ClearSign.

 

		7.	TRADE SECRETS AND CONFIDENTIALITY

 

Employee acknowledges
that Employee previously executed the Confidentiality and Proprietary Rights Agreement (the “Confidentiality Agreement”)
with ClearSign, attached hereto as Exhibit B, and that nothing herein shall limit Employee’s obligations
and/or ClearSign’s rights under the Confidentiality Agreement, which shall remain in force. Additionally, Employee agrees
to (a) keep confidential the terms of this Agreement, except upon order of any court, as required by law, or to the extent the
terms are made public by ClearSign, including through the Form 8-K attached as Exhibit C to be filed with
the Securities and Exchange Commission, and (b) comply with all terms of the Policy of Insider Trading attached as Exhibit
D and rules promulgated by the Securities and Exchange Commission as those rules would continue to apply to Employee.

 

		8.	NON-DISPARAGEMENT

 

Employee agrees
not to disparage, directly or indirectly, ClearSign or any of the Released Parties.

 

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        Employer

        Initials
	 	
        Employee

        Initials

 

    	 	 	 

     

    

 

		9.	FULL AND INDEPENDENT KNOWLEDGE

 

Employee represents
Employee has thoroughly read this Agreement, understands all its provisions, agrees to the terms, and is voluntarily entering into
this Agreement.

 

		10.	ARBITRATION

 

This Agreement shall be interpreted according
to Washington law, in Seattle, Washington, without regard to its conflict of interest principles. Any claim or controversy arising
from this Agreement shall be resolved by arbitration before a single arbitrator of JAMS in accordance with its Comprehensive Arbitration
Rules and Procedures and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
The single arbitrator shall be selected by mutual agreement of Employee and ClearSign. If such agreement cannot be reached the
arbitrator shall be selected according to the procedures of the JAMS. The single arbitrator shall award the prevailing party all
arbitration costs, arbitrator fees, reasonable attorneys’ fees and costs incurred by the prevailing party in connection with
the arbitrated claims. The arbitrator shall have authority to issue any remedy or relief that a court of competent jurisdiction
could award, order or grant including, without limitation, a preliminary or permanent injunction. Notwithstanding the foregoing,
either party may, without inconsistency with this provision, apply to any court having jurisdiction for interim, provisional injunctive
or equitable relief until the arbitration award is rendered and the controversy otherwise is resolved.

 

		11.	ATTORNEYS’ FEES

 

Each party shall
bear his or its own attorneys’ fees and costs, except as otherwise provided herein.

 

		12.	NON-RELEASED CLAIMS

 

This Agreement excludes, and you are
not waiving, (i) any right to file, testify or otherwise cooperate in the investigation of an administrative charge or complaint
with the Equal Employment Opportunity Commission, the National Labor Relations Board or other appropriate federal, state or local
administrative or law enforcement agency, although you are waiving any right to monetary recovery related to such a charge or administrative
complaint; (ii) any right to report conduct that is allegedly unlawful under federal securities laws to any government body or
agency, including the right to receive awards pursuant to Section 21F of the Securities Exchange Act; (iii) claims which cannot
be waived by law, such as claims for unemployment benefits; (iv) any indemnification rights you may have against ClearSign; and
(v) any rights to vested benefits, such as pension or retirement benefits.

 

	 	 	 	BGF	 	RR
	 	 	 	
        Employer

        Initials
	 	
        Employee

        Initials

 

    	 	 	 

     

    

 

		13.	CONSTRUCTION OF THIS AGREEMENT

 

a.           This
Agreement shall be binding upon the signatories and their respective heirs, administrators, representatives, executors, successors,
and assigns, and shall inure to the benefit of Released Parties, and each of them, and to their respective heirs, administrators,
representatives, executors, successors, and assigns, upon whom this Agreement shall also be binding.

 

b.           Should
any provision of this Agreement become legally unenforceable, no other provision of this Agreement shall be affected, and this
Agreement shall be construed as if the Agreement had never included the unenforceable provision.

 

c.           The
parties to this Agreement agree that any modification of this Agreement must be in writing, signed by Employee and ClearSign.

 

d.           THIS
AGREEMENT, TOGETHER WITH THE EXHIBITS, SHALL BE, AND CONSTITUTE FULL, COMPLETE, UNCONDITIONAL, AND IMMEDIATE SUBSTITUTION FOR ANY
AND ALL RIGHTS, CLAIMS, DEMANDS, AND CAUSES OF ACTIONS WHATSOEVER, WHICH HERETOFORE EXISTED OR MIGHT HAVE EXISTED ON BEHALF OF
EMPLOYEE AGAINST ANY OR ALL OF THE RELEASED PARTIES AND THEIR RESPECTIVE SUCCESSORS, PREDECESSORS, SUBSIDIARIES, AFFILIATES, PARENTS,
SHAREHOLDERS, PARTNERS, EMPLOYEES, AGENTS, REPRESENTATIVES, OFFICERS, DIRECTORS, PRINCIPALS, ASSIGNS, INSURERS AND ATTORNEYS. FURTHERMORE,
THIS AGREEMENT, INCLUDING THE EXHIBITS, IS THE ONLY, SOLE, ENTIRE, AND COMPLETE AGREEMENT OF THE PARTIES RELATING IN ANY WAY TO
THE SUBJECT MATTER HEREOF. NO STATEMENTS, PROMISES, OR REPRESENTATIONS HAVE BEEN MADE BY ANY PARTY TO ANY OTHER, OR RELIED UPON,
AND NO CONSIDERATION HAS BEEN OFFERED, PROMISED, EXPECTED, OR HELD OUT OTHER THAN AS MAY BE EXPRESSLY PROVIDED HEREIN.

 

e.           No
provision of this Agreement shall be modified or construed by any practice that is inconsistent with such provision, and failure
by any party to this Agreement to comply with any provision, or to require another party to comply with any provision, shall not
affect the rights of any party thereafter to comply or require the other to comply.

 

f.           This
Agreement may be executed and delivered in two or more counterparts, each of which, when so executed and delivered, shall be the
original, but such counterparts together shall constitute but one and the same instrument.

 

	 	 	 	BGF	 	RR
	 	 	 	
        Employer

        Initials
	 	
        Employee

        Initials

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this instrument on the dates indicated below in the County of King, State of Washington.

 

	ROBERTO RUIZ 	 	CLEARSIGN COMBUSTION CORPORATION

 

	/s/ Roberto Ruiz	 	By:	/s/ Brian G. Fike
	 	 	 	Brian G. Fike

	Dated:  January 4, 2019	 	Its: Interim Chief Financial Officer  
	 	 	Dated:  January 4, 2019

 

	 	 	 	BGF	 	RR
	 	 	 	
        Employer

        Initials
	 	
        Employee

        Initials

 

    	 	 	 

     

    

 

Exhibit A

 

Outstanding Stock Option Agreements

are summarized as follows:

 

	Option 
 Award#
	 	Strike 
 Price
	 	 	Options	 	 	Date of 
 Award
	 	Vesting 
 Commencement
	 	Vested on 
 January 
 4, 2019
	 	 	Original 
 Expiration 
 Date
	 	Revised 
 Expiriation 
 Date (1)

	12	 	$	4.88	 	 	 	30,000	 	 	1/17/2013	 	1/1/2013	 	 	30,000	 	 	12/31/2022	 	3/31/2019
	26	 	$	9.90	 	 	 	11,500	 	 	2/13/2014	 	1/1/2014	 	 	11,500	 	 	12/31/2023	 	3/31/2019
	44	 	$	5.21	 	 	 	20,000	 	 	4/1/2015	 	4/1/2015	 	 	18,750	 	 	3/31/2025	 	3/31/2019
	55	 	$	4.21	 	 	 	50,000	 	 	4/23/2016	 	4/1/2016	 	 	34,375	 	 	3/31/2026	 	3/31/2019
	76	 	$	3.80	 	 	 	10,000	 	 	6/23/2017	 	4/1/2017	 	 	4,375	 	 	3/31/2027	 	3/31/2019
	90	 	$	1.90	 	 	 	20,000	 	 	4/12/2018	 	4/1/2018	 	 	2,500	 	 	3/31/2028	 	3/31/2019

 

(1) The Revised Expiration Date assumes that Mr.
Ruiz does not maintain Continuous Service as defined in each of the above referenced Stock Option Award Agreements. Mr. Ruiz's
Original Expiration Date would be maintained if he maintains his Continuous Service by becoming a consultant or Director of the
Company.

 

	 	 	 	BGF	 	RR
	 	 	 	
        Employer

        Initials
	 	
        Employee

        Initials

 

    	 	 	 

     

    

 

Exhibit B

 

Confidentiality and Proprietary Rights
Agreement

executed by Roberto Ruiz on November
16, 2012

 

	 	 	 	BGF	 	RR
	 	 	 	
        Employer

        Initials
	 	
        Employee

        Initials

 

    	 	 	 

     

    

 

Exhibit C

 

Form 8-K

regarding separation of Roberto Ruiz

and entry into a material agreement

 

	 	 	 	BGF	 	RR
	 	 	 	
        Employer

        Initials
	 	
        Employee

        Initials

 

 

    	 	 	 

     

    

 

Exhibit D

 

Statement of ClearSign Combustion Corporation
Policy

on

Insider Trading and Compliance

acknowledged by Roberto Ruiz on September
15, 2015

 

	 	 	 	BGF	 	RR
	 	 	 	
        Employer

        Initials
	 	
        Employee

        Initials

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]