Document:

Exhibit 10.5

                            LIBERTY COAL ENERGY CORP.

                        2012 EXECUTIVE COMPENSATION PLAN

1. PURPOSE.  The purpose of this 2012 Executive  Compensation Plan is to advance
the interests of Liberty Coal Energy Corp., a Nevada corporation (the "COMPANY")
and its shareholders, by encouraging and enabling selected executives upon whose
judgment,  initiative  and effort  the  Company  is  largely  dependent  for the
successful conduct of its business, to acquire and retain a proprietary interest
in the Company by ownership of its stock,  to keep  personnel of experience  and
ability  in the  employ  of  the  Company  and  to  compensate  them  for  their
contributions  to the growth and profits of the Company and thereby  induce them
to continue to make such contributions in the future.

2. DEFINITIONS.  Terms having their first letter  capitalized in this Plan shall
have the  meanings  set  forth  below:
     2.1. "BOARD" shall mean the board of directors of the Company.
     2.2.  "COMMITTEE" shall mean the directors duly appointed to administer the
Plan.
     2.3. "COMPANY" shall mean Liberty Coal Energy Corp., a Nevada corporation.
     2.4.  "INTERMEDIARY"  shall mean Elco Securities,  Ltd. Located at Loyalist
Plaza, Don Mackay Blvd., P.O. Box AB-20377, Marsh Harbor, Abaco, Bahamas.
     2.5. "PLAN" shall mean this 2012 Executive Compensation Plan.
     2.6.  "BONUS  SHARE"  shall mean the shares of common  stock of the Company
reserved  pursuant to Section 4 hereof and any such shares issued to a Recipient
pursuant to this Plan.
     2.7. "BONUS SHARE RESERVE" shall have the meaning ascribed to it in Section
4.
     2.8.  "MOT" shall mean the  Memorandum  of Terms dated  August 17, 2012 and
numbered MOT 530362-102 LBTG by the Company.
     2.9.  "RECIPIENT"  shall mean any  individual  rendering  services  for the
Company to whom shares are granted  pursuant to this Plan.
     2.10. "VALUE ADDED MODEL" shall mean the model of available Bonus Shares as
set forth on Exhibit A attached hereto.

3. ADMINISTRATION OF PLAN. The Plan shall be administered by the Company's Board
of  Directors  or in the  alternative  by a committee  of two or more  directors
appointed by the Board (the "COMMITTEE").  The Committee shall report all action
taken by it to the Board.  The Committee  shall have full and final authority in
its  discretion,  subject to the  provisions  of the Plan,  to (i) determine the
individuals to whom and the time or times at which Bonus Shares shall be granted
and the number of Bonus Shares;  (ii) construe and interpret the Plan; and (iii)
make all other  determinations  and take all other actions  deemed  necessary or
advisable  for the  proper  administration  of the Plan.  All such  actions  and
determinations  shall be  conclusively  binding  for all  purposes  and upon all
persons.

4. BONUS SHARE  RESERVE.  There shall be  established  a Bonus Share  Reserve to
which shall be  credited a number of shares of the  Company's  common  stock not
exceed the greater of (i) 300,000,000 shares or (ii) Twenty Percent (20%) of the
Company's authorized shares of common stock (the "BONUS SHARE RESERVE").  In the

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event that the shares of common  stock of the Company  should,  as a result of a
stock split or stock dividend or  combination of shares or any other change,  or
exchange  for other  securities  by  reclassification,  reorganization,  merger,
consolidation,  recapitalization  or  otherwise,  be  increased  or decreased or
changed into or exchanged for, a different  number or kind of shares of stock or
other securities of the Company or of another corporation,  the number of shares
then  remaining in the Bonus Share  Reserve shall be  appropriately  adjusted to
reflect such action.  Upon the grant of shares hereunder,  this reserve shall be
reduced by the number of shares so granted.  Distributions  of Bonus Shares may,
as the Committee shall in its sole discretion determine, be made from authorized
but unissued shares or from treasury shares.  All authorized and unissued shares
issued  as Bonus  Shares in  accordance  with the Plan  shall be fully  paid and
non-assessable and free from preemptive rights.

5.  ELIGIBILITY,  GRANTING  AND  VESTING OF BONUS  SHARES.  Bonus  Shares may be
granted  under  the  Plan  to the  Company's  (or  the  Company's  subsidiaries)
executives, provided that bona fide services shall be rendered by such Recipient
and  the  Recipient  spends  or will  spend a  significant  amount  of time  and
attention on the affairs and business of the Company or an affiliated  entity of
the Company. Each quarter, the Committee,  in its sole discretion,  is empowered
to grant to an eligible Recipient a number of Bonus Shares as it shall determine
from time to time; provided that the aggregate grant of Bonus Shares per quarter
to  eligible  Recipients  does not exceed the  maximum  number of common  shares
permitted to be granted in the Value Added Model and such shares are granted and
issued in  compliance  with the terms of this  Plan and the MOT.  Each  grant of
these  Bonus  Shares  shall vest  pursuant  to the terms of the MOT and when the
Company receives written notice from the Intermediary that a successful breakout
has  occurred  pursuant to the Value Added Model,  the Bonus  Shares  granted in
connection with the respective  breakout shall become  immediately  100% vested.
The  Committee  may grant  Bonus  Shares each  quarter  within the limits of the
respective  breakouts  set forth in the Value Added  Model.  At such time as the
employment of a Recipient ceases, any shares not fully vested shall be forfeited
by the  Recipient  and  shall  be  returned  to the  Bonus  Share  Reserve.  The
Committee,  in its sole discretion,  may also impose  restrictions on the future
transferability  of the Bonus Shares,  which  restrictions shall be set forth on
the  notification to the Recipient of the grant.  The aggregate  number of Bonus
Shares  which may be granted  pursuant  to this Plan shall not exceed the amount
available therefore in the Bonus Share Reserve.

6. FORM OF GRANTS.  Each grant shall specify the number of Bonus Shares  subject
thereto,  subject to the  provisions of Section 5 hereof.  At the time of making
any grant,  the  Committee  shall  advise the  Recipient  by delivery of written
notice, in the form of Exhibit B attached hereto.

7. RECIPIENTS' REPRESENTATIONS.
     7.1. The Committee  may require  that,  in acquiring any Bonus Shares,  the
Recipient  agree with,  and  represent  to, the Company  that the  Recipient  is
acquiring  such Bonus Shares for the purpose of  investment  and with no present
intention  to  transfer,  sell  or  otherwise  dispose  of  shares  except  such
distribution by a legal  representative as shall be required by will or the laws
of any jurisdiction in winding-up the estate of any Recipient. Such shares shall
be transferable  thereafter  only if the proposed  transfer shall be permissible
pursuant  to  the  Plan  and  if,  in the  opinion  of  counsel  (who  shall  be
satisfactory  to  the  Committee),  such  transfer  shall  at  such  time  be in
compliance with applicable securities laws.

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<PAGE>
     7.2. To effectuate  Paragraph 7.1 above, the Recipient shall deliver to the
Committee,  in duplicate,  an agreement in writing,  signed by the Recipient, in
form and substance as set forth in Exhibit C attached hereto,  and the Committee
shall forthwith acknowledge its receipt thereof.

8. RESTRICTIONS UPON ISSUANCE.
     8.1. Bonus Shares shall forthwith  after the making of any  representations
required by Section 7 hereof, or if no representations  are required then within
thirty  (30) days of the date of grant,  be duly  issued and  transferred  and a
certificate or  certificates  for such shares shall be issued in the Recipient's
name.  The Recipient  shall  thereupon be a shareholder  with respect to all the
shares  represented  by such  certificate  or  certificates,  shall have all the
rights of a shareholder with respect to all such shares,  including the right to
vote such shares and to receive all dividends and other  distributions  (subject
to the  provisions  of Section 8.2  hereof)  paid with  respect to such  shares.
Certificates of stock representing Bonus Shares shall be imprinted with a legend
to the effect that the shares represented  thereby are subject to the provisions
of this Agreement,  and to the vesting and transfer  limitations  established by
the Committee,  and each transfer agent for the common stock shall be instructed
to like effect with respect of such shares.
     8.2. In the event that, as the result of a stock split or stock dividend or
combination of shares or any other change, or exchange for other securities,  by
reclassification,  reorganization,  merger,  consolidation,  recapitalization or
otherwise,  the  Recipient  shall,  as  owner of the  Bonus  Shares  subject  to
restrictions  hereunder, be entitled to new or additional or different shares of
stock or securities, the certificate or certificates for, or other evidences of,
such new or additional or different shares or securities,  together with a stock
power or other  instrument  of transfer  appropriately  endorsed,  shall also be
imprinted  with a legend as provided in Section 8.1, and all  provisions  of the
Plan relating to restrictions  herein set forth shall thereupon be applicable to
such  new or  additional  or  different  shares  or  securities  to  the  extent
applicable to the shares with respect to which they were distributed.
     8.3. The grant of any Bonus Shares shall be subject to the  condition  that
if at  any  time  the  Company  shall  determine  in  its  discretion  that  the
satisfaction of withholding tax or other  withholding  liabilities,  or that the
listing,  registration,  or qualification of any Bonus Shares upon such exercise
upon any  securities  exchange  or under any state or federal  law,  or that the
consent or approval of any  regulatory  body,  is  necessary  or  desirable as a
condition of, or in connection  with, the issuance of any Bonus Shares,  then in
any such event,  such exercise shall not be effective  unless such  withholding,
listing,  registration,  qualification,  consent,  or  approval  shall have been
effected or obtained free of any conditions not acceptable to the Company.
     8.4.  Unless the Bonus Shares covered by the Plan have been registered with
the Securities and Exchange  Commission  pursuant to Section 5 of the Securities
Act of 1933,  as amended,  each  Recipient  shall,  by  accepting a Bonus Share,
represent  and agree,  for  himself and his  transferees  by will or the laws of
descent and distribution, that all Bonus Shares were acquired for investment and
not for resale or  distribution.  The person  entitled to receive  Bonus  Shares
shall,  upon request of the  Committee,  furnish  evidence  satisfactory  to the
Committee (including a written and signed representation) to the effect that the
shares of stock are being  acquired  in good  faith for  investment  and not for
resale or distribution. Furthermore, the Committee may, if it deems appropriate,
affix a legend to certificates  representing  Bonus Shares  indicating that such
Bonus  Shares  have  not  been  registered  with  the  Securities  and  Exchange
Commission and may so notify the Company's  transfer  agent.  Such shares may be
disposed of by a Recipient  in the  following  manner  only:  (i) pursuant to an

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effective  registration statement covering such resale or reoffer, (ii) pursuant
to an applicable  exemption from  registration as indicated in a written opinion
of counsel  acceptable to the Company,  or (iii) in a transaction that meets all
the requirements of Rule 144 of the Securities and Exchange Commission. If Bonus
Shares covered by the Plan have been registered with the Securities and Exchange
Commission,  no such  restrictions on resale shall apply,  except in the case of
Recipients  who  are  directors,  officers,  or  principal  shareholders  of the
Company.  Such persons may dispose of shares only by one of the three  aforesaid
methods.

9. LIMITATIONS.  Neither the action of the Company in establishing the Plan, nor
any action taken by it nor by the Committee under the Plan, nor any provision of
the Plan, shall be construed as giving to any person the right to be retained in
the employ of the Company.  Every right of action by any person receiving shares
of common stock pursuant to this Plan against any past, present or future member
of the Board,  or any officer or  employee  of the Company  arising out of or in
connection  with this Plan shall,  irrespective of the place where action may be
brought and irrespective of the place of residence of any such director, officer
or employee  cease and be barred by the  expiration of one year from the date of
the act or omission in respect of which such right of action arises.

10. AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN. The Board of Directors may
alter,  suspend,  or  discontinue  the Plan at any time.  Unless  the Plan shall
theretofore have been terminated by the Board, the Plan shall terminate 10 years
after the effective  date of the Plan. No Bonus Share may be granted  during any
suspension or after the  termination of the Plan. No amendment,  suspension,  or
termination of the Plan shall,  without a recipient's  consent,  alter or impair
any of the rights or obligations  under any Bonus Share  theretofore  granted to
such recipient under the Plan.

11.  COMPLIANCE  WITH  LEGISLATION.  The Plan,  the grant and  exercise of Bonus
Shares hereunder and the Company's obligation to deliver common shares hereunder
shall  be  subject  to  all  applicable   federal  and  state  laws,  rules  and
regulations,  the  rules and  regulations  of any  stock  exchange  on which the
Company's  common  shares are listed for  trading and to such  approvals  by any
regulatory  or  governmental  agency as may,  in the  opinion  of counsel to the
Company,  be required.  The Company shall not be obliged by any provision of the
Plan or the  grant of any  Bonus  Shares  hereunder  to issue  common  shares in
violation  of  such  laws,  rules  and  regulations  or any  condition  of  such
approvals.  No Bonus  Shares  shall  be  granted  and no  common  shares  issued
hereunder where such grant or issue would require registration of the Plan or of
common shares under the securities  laws of any  jurisdiction  and any purported
grant of any Bonus  Shares or issue of common  shares  hereunder in violation of
this Section shall be void.

12. EFFECTIVE DATE. The Plan shall be effective upon the approval of the Plan by
the shareholders of the Company,  given by the affirmative vote of a majority of
the votes  attached  to the common  shares of the  Company  entitled to vote and
represented  and voted at an annual or special  meeting  of the  holders of such
common shares held, among other things, to consider and approve the Plan.

13.  GOVERNING  LAW.  The Plan  shall be  governed  by the laws of the  State of
Nevada.

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<PAGE>
14. EXPENSES OF ADMINISTRATION. All costs and expenses incurred in the operation
and administration of this Plan shall be borne by the Company.

The  undersigned  duly appointed  secretary of the Company,  does hereby certify
that this  Plan,  and its  terms  and  provisions,  were  duly  approved  by the
Company's Board of Directors on this 27th day of September, 2012.

/s/ Robert Malasek
-----------------------------------
Corporate Secretary

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                                    EXHIBIT A

                                VALUE ADDED MODEL

<TABLE>
<CAPTION>
Value Added Model          % of Breakout Shares           100%              Warrant               Common
Nreakout Bonus Period         Pref. Shr. Amt.       Common Shr. Amt.      Series VAM            Shares 100%
---------------------         ---------------       ----------------      ----------            -----------
<S>                            <C>                   <C>                                       <C>
Breakout 1-3                     477,935               47,793,500             A-C                48,021,165
Breakout 4-6                     389,894               38,989,400             D-F                39,754,278
Breakout 7-9                     318,207               31,820,700             G-I                32,910,543
Breakout 10-12                   259,808               25,980,800             J-L                27,244,963
Breakout 13-15                   212,312               21,231,200             M-O                22,565,758
Breakout 16-18                   173,479               17,347,900             P-R                18,681,042
Breakout 19-21                   141,800               14,180,000             S-U                15,465,084
Breakout 22-24                   115,947               11,594,700             V-X                12,802,755
Breakout 25-27                    94,838                9,483,800             Y-AA               10,598,750
Breakout 28-30                    77,598                7,759,800             AB-AD               8,774,165
Breakout 31-33                    63,512                6,351,200             AE-AG               7,263,685
Breakout 34-36                    51,996                5,199,600             AH-AJ               6,013,235
                               ---------              -----------                               -----------
Total Equity VAM:              2,377,326              237,732,600         Total Warrant VAM     250,095,423
</TABLE>

                                   Exhibit A-1
<PAGE>
                                    EXHIBIT B

LIBERTY COAL ENERGY CORP.
2012 EXECUTIVE COMPENSATION PLAN

TO: Recipient

PLEASE BE ADVISED that Liberty Coal Energy Corp.  has on the date hereof granted
to the  Recipient  the number of Bonus Shares as set forth under and pursuant to
the 2012 Executive  Compensation Plan. Before these shares are to be issued, the
Recipient  must deliver to the Committee  that  administers  the 2012  Executive
Compensation  Plan an agreement in duplicate,  in the form as Exhibit C attached
hereto. The Bonus Shares are granted and issued subject to the following vesting
and transfer limitations.

Number of Bonus Shares Granted:  ______________

Vesting:                         These Bonus Shares  shall vest  pursuant to the
                                 terms of the MOT  until  the  Company  receives
                                 written  notice  from the  Intermediary  that a
                                 successful  breakout has  occurred  pursuant to
                                 the Value Added Model.

Date of 100% Vesting:            The Bonus Shares granted in connection with the
                                 respective  breakouts  in the Value Added Model
                                 shall  become  immediately  100%  vested on the
                                 date   of   the   written   notice   from   the
                                 Intermediary  that a  successful  breakout  has
                                 occurred.

Transfer Limitations:            ______________

                                 LIBERTY COAL ENERGY CORP.

Date: ________________, 20__

                                 By:
                                    --------------------------------------------
                                    Signature of Authorized Signatory

                                 Its:
                                     -------------------------------------------
                                     Print Name and Title of Signatory

                                   Exhibit B-1
<PAGE>
                                    EXHIBIT C

Liberty Coal Energy Corp.
99-18th Street, Suite 3000
Denver, CO 80202

I  represent  and agree that said  Bonus  Shares  are being  acquired  by me for
investment and that I have no present  intention to transfer,  sell or otherwise
dispose  of such  shares,  except  as  permitted  pursuant  to the  Plan  and in
compliance with applicable  securities  laws, and agree further that said shares
are being acquired by me in accordance with and subject to the terms, provisions
and conditions of said Plan, to all of which I hereby expressly  acknowledge and
agree.  These agreements shall bind and inure to the benefit of my heirs,  legal
representatives, successors and assigns.

My address of record is:
                                    --------------------------------------------

                                    --------------------------------------------

My social security number is:
                                    --------------------------------------------

                                    Yours very truly,

Date: ________________, 20__

                                    --------------------------------------------
                                    Signature of Recipient

                                    --------------------------------------------
                                    Print Name of Recipient

Receipt of the above is hereby acknowledged.

                                LIBERTY COAL ENERGY CORP.

Date: ________________, 20__

                                By:
                                    --------------------------------------------
                                    Signature of Authorized Signatory

                                Its:
                                    --------------------------------------------
                                    Print Name and Title of Signatory

                                   Exhibit C-1Unassociated Document

Exhibit 10.29

FORM OF NOTE EXTENSION AGREEMENT

THIS NOTE EXTENSION AGREEMENT (the “Agreement”) is made and entered into on this ______ day of _______________ 2012 (the “Effective Date”) by and between Circle Star Energy Corp., a Nevada corporation (“Circle Star”), and ________________ (the “February Noteholder”).

 

RECITALS

 

A.           On February 8, 2012, pursuant to a Subscription Agreement for 10% Convertible Notes, Circle Star issued a 10% convertible note in the principal amount of US$1,375,000 due February 8, 2013, to ____________ (Note No: 2012 CN – 00●) (the “February Note”), subject to the terms of the Inter-Creditor Agreement dated February 8, 2012, among Circle Star, the February Noteholder and ______________, a purchaser of a 10% convertible note as part of the same offering (the “Inter-Creditor Agreement”).

 

B.           The February Note matures on February 8, 2013,  requires 10% interest per annum to be paid on a monthly basis and permits conversion at a rate of $1.50 per share of common stock of Circle Star.

 

C.           Circle Star intends to raise a minimum of $5,000,000 (the “Financing”) within 90 days of the Effective Date (the “Fund Raising Period”), with the Fund Raising Period subject to 30-day incremental extensions at the sole discretion of the February Noteholders (each, an “Extension Period” and collectively, the “Extension Periods”).

 

D.           Circle Star and the February Noteholder have determined that it is in the best interest of the parties to (i) permit interest under the February Note to accrue through the Fund Raising Period and each Extension Period and (ii) to extend the due date of the February Note to September 30, 2014 upon closing of the Financing within the Fund Raising Period or Extension Period.

 

AGREEMENT

 

THEREFORE, in consideration of the mutual promises, covenants, representations and warranties contained in, and of the mutual benefits derived from the transactions contemplated therein, Circle Star and the February Noteholder agree as follows:

 

1. February Note Extension. In the event the Financing is closed within the Fund Raising Period or the Extension Periods, Circle Star and the February Noteholder agree that the due date of the February Note shall be automatically extended from February 8, 2013 to September 30, 2014, on the closing date of the Financing (the “Closing Date”), without further action by Circle Star or the February Noteholder.  The foregoing notwithstanding, Circle Star will immediately issue an amended and restated February Note in substantially the form attached hereto as Exhibit A (the “Restated February Note”) and the original February Note shall be deemed null and void.  Within five business days of the Closing Date, the February Noteholder will return the certificate representing the original February Note to Circle Star for cancellation.

 

In the event the Financing fails to close within the Fund Raising Period or the Extension Periods, the terms and conditions under the February Note remain in full force and effect.

 

2. Interest. Circle Star and the February Noteholder agree that the interest under the February Note shall be deferred and accrued from May 1, 2012 until the end of the Fund Raising Period and all Extension Periods.  On the Closing Date, Circle Star shall pay all accrued and unpaid interest due on the Closing Date.  Interest accruing on the Restated February Note after the Closing Date shall be paid under the terms of the Restated February Note in monthly interest payments.

 

Consideration for Extension and Deferment.  In consideration for the February Noteholder entering into this Agreement and agreeing to extend the due date of the February Note and defer the interest payments during the Fund Raising Period and all Extension Periods, Circle Star agrees to pay the February Noteholder an aggregate of two hundred fifty thousand (250,000) shares of common stock of Circle Star, issuable as follows:  Circle Star shall issue to the February Noteholder one hundred twenty five thousand (125,000) shares of common stock of Circle Star within five business days of execution of this Agreement and one hundred twenty five thousand (125,000) shares of common stock of Circle Star within five business days of the Closing Date.

 

  

  

  

 

3. Representations.  The February Noteholder represents, warrants and confirms that:

 

	
  

	
(a)

	
there are currently no known defaults under the February Note and the Inter-Creditor Agreement;

 

	
  

	
(b)

	
it owns all of the interest in the February Note and that the February Note has not been assigned, transferred, or sold to a third party or otherwise encumbered; and

 

	
  

	
(c)

	
it has the requisite legal power and capacity to execute and deliver this Agreement and upon execution this document will constitute the valid and legally binding obligations of the February Noteholder, enforceable in accordance with their terms.

 

4. Further Assurance.  At the Closing Date or in a reasonable time thereafter, each of Circle Star and the February Noteholder agree to use commercially reasonable efforts to amend the Inter-Creditor Agreement and such other documents or agreements in a manner consistent with the terms of this Agreement.

 

5. Applicable Law. This Agreement shall be governed by and construed with the internal laws of the State of Nevada, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction and shall be treated in all respects as Nevada contracts.

 

6. Conflicting Terms.  In the event of any conflicting terms between this Agreement and the February Note or Restated February Note, the terms and conditions under this Agreement shall control.

 

7. Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same instrument.

 

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