Document:

EMPLOYMENT AGREEMENT

 

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made and entered into effective as of the 28th day of August, 2011, (the “Effective
Date”) by and between COLOMBIA CLEAN POWER & FUELS, INC., a Nevada corporation, (the “Company”)
and RONALD G. STOVASH (the “Employee”).

 

W I T N E S S E T H:

WHEREAS, the Company
desires to hire the Employee as Chief Executive Officer and desires to have the benefit of the Employee’s full-time efforts
and services; and

WHEREAS, the Company
believes that it is appropriate and in the best interests of the Employee to provide to the Employee the compensation and benefits
set forth herein;

NOW, THEREFORE,
in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, the Company and the Employee
hereby mutually covenant and agree as follows:

1.EMPLOYMENT.
The Company hereby agrees to employ the Employee and the Employee hereby agrees to serve the Company, on the terms and conditions
set forth herein.

2.TERM.
The employment of the Employee by the Company pursuant to the provisions of this Agreement shall commence on the Effective Date
hereof and shall continue until this Agreement is terminated by either party hereto as set forth in Section 6 hereof.

3.LOCATION.
The Employee shall perform the services for the Company under this Agreement at the offices of the Company located throughout the
United States and in the Republic of Colombia, and at the offices of Employee in Naples, FL and Morgantown, WV. The Employee shall
reside in Naples, FL and Morgantown, WV.

4.POSITIONS
AND DUTIES. The Employee shall serve as the Chief Executive Officer (“CEO”) of the Company, reporting directly
to the Board of Directors (the “Board”) or to the Chairman of the Board. The Employee shall hold such title
or titles with the Company which shall encompass his position as CEO. The Employee shall also be appointed to serve, and shall
accept appointment to serve, as a director of the Company upon assuming the duties as Chief Executive Officer (“CEO”).
The Employee shall perform such services commensurate with being CEO of a public company subject to the reporting obligations of
Section 13 of the Exchange Act, including commensurate services for any subsidiary of the Company. In connection with the foregoing
position, the Employee shall have such specific duties, responsibilities and authority as may from time to time be assigned by
the Board or the Chairman. The Employee agrees to work exclusively for the Company during the term of this Agreement, unless written
approval is granted by the Company. The Employee agrees to adhere to the Company’s published policies and procedures, or
code of conduct, as each is adopted from time to time, affecting directors, officers, employees, and agents and shall use his best
efforts to promote the Employer’s interest, reputation, business and welfare.

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5.COMPENSATION
AND RELATED MATTERS.

(a)Base Salary.
The Company shall pay to the Employee USD$360,000 per annum beginning on the Effective Date, in accordance with the Company’s
standard payroll policy (as in effect from time to time). The monthly base salary shall be prorated for any partial month in which
this Agreement is terminated or during which the Employee is entitled to receive compensation under this Agreement.

(b)Annual Performance
Review and Base Salary Increases. The Employee’s initial annual base salary shall be reviewed by the Compensation Committee
on or before December 31, 2012, and shall be reviewed thereafter no less frequently than annually for increases in the discretion
of the Compensation Committee targeted to be no less than a 10% minimum salary increase of the Employee’s base salary then
in effect for each of the periods ending December 31, 2012, December 31, 2013, and December 31, 2014. Increases in the Employee’s
base salary above the 10% minimum increase shall be based upon achievement of certain performance objectives to be determined in
good faith by the Compensation Committee and the Employee, which criteria for the first period of this Agreement through December
31, 2012, will be established within thirty (30) days of the Effective Date. Performance criteria for subsequent years will be
determined within thirty (30) days prior to the end of each calendar year. Annual salary increases after December 31, 2014 shall
not be required to have a minimum salary increase of 10%.

(c)Performance
Bonuses. Employee will be eligible to receive an annual bonus targeted to be a minimum of 100% of Employee’s then applicable
base salary, less applicable withholding taxes, upon achievement of annual performance objectives to be determined in good faith
by the Compensation Committee and the Employee, which objectives for the first period of this Agreement through December 31, 2011,
will be established within thirty (30) days of the Effective Date. Objectives for subsequent calendar years will be determined
as set forth herein within thirty (30) days prior to the end of each calendar year. Bonus payments will be prorated for the first
period ending December 31, 2011, and in each instance shall be paid to the Employee not later than the end of the first fiscal
quarter following achievement of annual performance objectives. The performance bonus shall be payable in a combination of cash
and shares Company’s common stock at the Company’s discretion, with not less than 50% of the bonuses being paid in
cash.

(d)Signing
Bonus. As a signing bonus, the Employee shall receive options to purchase 500,000 shares of the Company’s common stock
granted under the Company’s 2010 Equity Incentive Plan. The options shall have a five year term and shall be in the standard
form of Stock Option Agreement issued by the Company. The options shall have a three year vesting period, with 25 % vesting immediately
and 25% vesting on the next three anniversaries of the Effective Date of this Employment Agreement. The exercise price of 250,000
of the options shall be USD$2.50 and the exercise price of the remaining 250,000 options shall be USD$5.00.

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(e)Expenses.
The Employee shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Employee in performing
services hereunder, including all expenses for travel on Company business for the Employee and his Spouse (including travel to
and from Employee’s office in Naples, FL or Morgantown, WV) or at the request of and in the service of the Company, provided
that such expenses are incurred and accounted for in accordance with the policies and procedures established from time to time
by the Company. As a condition for reimbursement of expenses, the Employee shall provide such supporting information and documentation
as the Company may reasonably request in accordance with Company policy and the requirements of the Internal Revenue Code.

(f)Apartment
Expenses. The Company shall reimburse the Employee for expenses reasonably related to the use of an apartment by the Employee
in Bogotá, Colombia. The location and size of the apartment shall be mutually acceptable to the Company and the Employee.

(g)Vacation
& Holidays. Employee will be entitled to paid vacation of five (5)weeks per year (prorated for any portion of any calendar
year within the Employment Period in accordance with the Company’s vacation policy, with the timing and duration of specific
vacations mutually and reasonably agreed to by the parties hereto. The Employee shall also be entitled and paid for all reasonably
recognized holidays.

(h)Withholding
Taxes. The Company may make any appropriate arrangements to deduct from all benefits provided hereunder any taxes reasonably
determined to be required to be withheld by any government or government agency. The Employee shall bear all taxes on benefits
provided hereunder to the extent that no taxes are withheld, irrespective of whether withholding is required.

(i)Insurance
and Other Benefits. Health and other insurance benefits will not be provided for the Employee by the Company, with the exception
that the Company will provide or reimburse the Employee or the policy holder of the Employee’s life insurance policy for
a USD$2 million life insurance policy. Given the personal security risk associated with the duties of the Employee while in Columbia,
the Company at its own expense, will provide personal security protection and security to the Employee mutually and reasonably
agreed to by the parties hereto.

6.TERMINATION.

(a) Termination
by the Company. The Employee’s employment with the Company may be terminated under the following conditions:

(i)Termination
for Death or Disability. The Employee’s employment with the Company shall terminate effective upon the date of the Employee’s
death or Complete Disability (as defined below).

(ii)Termination
by the Company for Cause. The Company may terminate the Employee’s employment under this Agreement for Cause (as defined
below). A notice of termination given pursuant to this Section 6(a)(ii) shall effect termination as of the date specified, or,
in the event no such date is specified, on the date upon which the notice is given.

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(iii)Termination
by the Company for Any Reason Other Than Cause. The Employee’s employment by the Company shall be “at will.”
The Company may terminate the Employee’s employment under this Agreement at any time, for any or no reason and with or without
cause or advance notice. This is the full and complete agreement between the Employee and the Company on this term. Although the
Employee’s duties, title, compensation and benefits may change, the “at will” nature of the Employee’s
employment relationship with the Company may only be modified in an express written agreement signed by the Employee and the Chairman
of the Board.

(b)Termination
by Mutual Agreement of the Parties. The Employee’s employment pursuant to this Agreement may be terminated at any time
upon the mutual written agreement of the Employee and the Company. Any such termination of employment shall have the consequences
specified in such writing.

(c)Termination
by the Employee. The Employee’s employment by the Company shall be “at will.” The Employee shall have the
right to resign or terminate the Employee’s employment at any time, with or without cause, notice or Good Reason.

(d)Compensation
Upon Termination.

(i)With
Cause or Employee’s Resignation Without Good Reason. If the Employee’s employment is terminated by the Company
for Cause or the Employee resigns employment hereunder without Good Reason, then the Company shall pay the Employee’s base
salary earned through the date of termination, and the Company shall thereafter have no further obligations to the Employee under
this Agreement.

(ii)Death
or Complete Disability. If the Employee’s employment terminates as a result of death or Complete Disability, and
said death or Complete Disability is not the result of Employee performing his duties hereinafter, then the Company shall pay the
Employee’s base salary and prorated performance bonus, as if the Employee achieved 100% of the target bonus, earned through
the date of termination. The Company shall thereafter have no further obligations to the Employee
under this Agreement. If the Employee’s death or Complete Disability occurs as a result of the Employee carrying out his
duties hereunder, then Employee shall also be entitled to all unvested stock options which shall immediately vest.

(iii)Without
Cause or Upon Good Reason. If the Company terminates the Employee’s employment without Cause or the Employee resigns
for Good Reason, then the Company shall pay the Employee’s base salary and prorated performance bonus, as if the Employee
achieved 100% of the target bonus, through the date of termination. In addition, the Company shall provide the Employee with the
following severance benefits: The Company shall continue to pay the Employee’s base salary and prorated performance bonus,
as if the Employee achieved 100% of the target bonus, as in effect on the date of termination until the end of the eighteen (18)
month period following the termination of the Employee’s employment (the “Severance Payment”).

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(iv)Following
a Change in Control. If within eighteen (18) months following a Change in Control (as defined below), the Company or
its assignee terminates the Employee’s employment without Cause or the Employee resigns for Good Reason, then the Employee
shall receive the benefits set forth in Section 6(d)(iii), except that: (i) the Severance Payments shall
be paid in one lump sum within thirty (30) days following the termination or resignation pursuant to this subsection; and (ii)
all unvested stock options shall immediately vest.

(v)Termination
Certification and General Release. Notwithstanding the foregoing, the Employee shall receive none of the severance payments
or benefits set forth under Sections 6(d)(iii) or (iv) unless the Employee furnishes the Company with an effective waiver and release
of claims (the “Certification and Release”) in a form acceptable to the Company and substantially as
attached hereto as Exhibit A, which is incorporated herein. If the Chairman or a majority of the Board determines
in good faith that the Employee has breached any provision of his Proprietary Information (as defined below) or Sections 7 or 8
pertaining to Inventions, or any provision of this Agreement or the Certification and Release, the Company shall be excused from
the obligation to provide any remaining severance benefits under Section 6(d)(iii) or (iv) and is entitled to full recovery of
any severance amounts already provided to the Employee.

(e)Definitions.
For purposes of this Agreement, the following terms shall have the following meanings:

(i)Complete
Disability. “Complete Disability” shall mean the inability of the Employee to perform the Employee’s
duties under this Agreement because the Employee has become permanently disabled within the meaning of any policy of disability
income insurance covering employees of the Company then in force. In the event the Company has no policy of disability income insurance
covering employees of the Company in force when the Employee becomes disabled, the term “Complete Disability” shall
mean the inability of the Employee to perform the Employee’s duties under this Agreement by reason of any incapacity, physical
or mental, which the Chairman and/or Board, based upon medical advice or an opinion provided by a licensed physician acceptable
to the Chairman and/or Board, determines to have incapacitated the Employee from satisfactorily performing all of the Employee’s
usual services for the Company for a period of at least one hundred twenty (120) days during any twelve (12) month period (whether
or not consecutive). Based upon such medical advice or opinion, the determination of the Chairman and/or Board shall be final and
binding and the date such determination is made shall be the date of such Complete Disability for purposes of this Agreement.

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(ii)Cause.
“Cause” for the Company to terminate Employee’s employment hereunder shall mean the occurrence of one
or more of the following, as reasonably determined by the Chairman and/or Board: (i) the final conviction of Employee of, or Employee’s
plea of guilty or nolo contendere to, any felony or a crime involving dishonesty, fraud, or moral turpitude; (ii) the indictment
of Employee for any felony or a crime involving dishonesty, fraud, or moral turpitude which, in the reasonable good-faith judgment
of the Board, has materially damaged, or could materially damage, the reputation of the Company or would materially interfere with
the performance of services by the Employee; (iii) the willful commission of fraud, nonincidental misappropriation, embezzlement,
or other dishonest act by Employee against the Company; (iv) Employee’s use of illegal drugs or alcohol on the Company’s
premises, Employee’s use of illegal drugs or alcohol having an adverse effect on the performance of the Employee’s
duties hereunder, or Employee’s use of illegal drugs or alcohol which, in the reasonable good-faith judgment of the Board,
has materially damaged, or could materially damage, the reputation of the Company; (v) Employee’s willful failure, negligence,
or gross misconduct in the performance of his duties to the Company; (vi) Employee’s malfeasance in the performance of his
duties hereunder; (vii) Employee’s nonfeasance in the performance of his duties hereunder not cured within ten (10) business
days after notice of such nonfeasance; (viii) Employee’s failure to follow a written order which is both legal and reasonable;
or (ix) Employee’s breach of this Agreement not cured within ten (10) business days after notice of such breach.

(iii)Change
of Control. “Change of Control” for the Employee to terminate his employment hereunder shall mean the merger,
consolidation, or similar transaction in which the Company is not the survivor (except where the effect of such transaction is
to change the domicile of the Company, but not the office of the Employee in Naples, FL), or the sale of all or substantially all
of the assets of the Company.

(iv)Good
Reason. “Good Reason” for the Employee to terminate his employment hereunder shall mean the occurrence of
one or more of the following, without the Employee’s express written consent and for which the Employee has given the Company
express written notice within thirty (30) days following such occurrence and the Company has had thirty (30) days to cure such
occurrence: (i) a significant reduction in the Employee’s duties, position or responsibilities relative to the duties, position
or responsibilities in effect immediately prior to such reduction; provided, however, that a reduction in duties, position
or responsibilities solely by virtue of the Company being acquired and made part of a larger entity (as, for example, when, following
a Change of Control, he remains an Employee in a division or subsidiary of the acquirer that contains the Company’s business)
shall not constitute Good Reason for the Employee to terminate his employment; (ii) a Company mandated change in Employee’s
work location from Naples, FL; (iii) a reduction in the Employee’s base salary, benefits, or minimum base salary annual increases
as in effect immediately prior to such reduction; or (iv) a breach of this Agreement by the Company.

(f)Exclusive
Remedy. The rights, remedies and payments set forth in this Section 6 shall be the exclusive rights, remedies and payments
available to the Employee upon termination of this Agreement and the Employee’s employment hereunder. Such rights remedies
and payments shall supersede and replace any and all rights and remedies under state or federal law. The Company may deduct any
amounts the Employee owes the Company at the time of the Employee’s termination of employment from any Severance Payments.

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7.NONDISCLOSURE
OF PROPRIETARY INFORMATION. Recognizing that the Company is presently engaged, and may hereafter continue to be engaged, in
the research and development of processes, the manufacturing of products or performance of services, which involve experimental
and inventive work and that the success of its business depends upon the protection of the processes, products and services by
patent, copyright or by secrecy and that the Employee has had, or during the course of his engagement may have, access to Proprietary
Information, as hereinafter defined, of the Company or other information and data of a secret or proprietary nature of the Company
which the Company wishes to keep confidential and the Employee has furnished, or during the course of his engagement may furnish,
such information to the Company, the Employee agrees that:

(a)“Proprietary
Information” shall mean any and all methods, inventions, improvements or discoveries, whether or not patentable or copyrightable,
and any other information of a similar nature related to the business of the Company disclosed to the Employee or otherwise made
known to his as a consequence of or through his engagement by the Company (including information originated by the Employee) in
any technological area previously developed by the Company or developed, engaged in, or researched, by the Company during the term
of the Employee’s engagement, including, but not limited to, trade secrets, processes, products, formulae, apparatus, techniques,
know-how, marketing plans, data, improvements, strategies, forecasts, customer lists, and technical requirements of customers,
unless such information is in the public domain to such an extent as to be readily available to competitors;

(b)The Employee
acknowledges that the Company has exclusive property rights to all Proprietary Information and the Employee hereby assigns all
rights he might otherwise possess in any Proprietary Information to the Company. Except as required in the performance of his duties
to the Company, the Employee will not at any time during or after the term of his engagement, which term shall include any time
in which the Employee may be retained by the Company as a consultant, directly or indirectly use, communicate, disclose or disseminate
any Proprietary Information or any other information of a secret, proprietary, confidential or generally undisclosed nature relating
to the Company, its products, customers, processes and services, including information relating to testing, research, development,
manufacturing, marketing and selling;

(c)All documents,
records, notebooks, notes, memoranda and similar repositories of, or containing, Proprietary Information or any other information
of a secret, proprietary, confidential or generally undisclosed nature relating to the Company or its operations and activities
made or compiled by the Employee at any time or made available to his prior to or during the term of his engagement by the Company,
including any and all copies thereof, shall be the property of the Company, shall be held by his in trust solely for the benefit
of the Company, and shall be delivered to the Company by his on the termination of his engagement or at any other time on the request
of the Company; and

(d)The Employee
will not assert any rights under any inventions, copyrights, discoveries, concepts or ideas, or improvements thereof, or know-how
related thereto, as having been made or acquired by his prior to his being engaged by the Company or during the term of his engagement
if based on or otherwise related to Proprietary Information.

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8.ASSIGNMENT
OF INVENTIONS.

(a)For purposes
of this Section 8, the term “Inventions” shall mean discoveries, concepts, and ideas, whether patentable or
copyrightable or not, including but not limited to improvements, know-how, data, processes, methods, formulae, and techniques,
as well as improvements thereof or know-how related thereto, concerning any past, present or prospective activities of the Company
which the Employee makes, discovers or conceives (whether or not during the hours of his engagement or with the use of the Company’s
facilities, materials or personnel), either solely or jointly with others during his engagement by the Company or any affiliate
and, if based on or related to Proprietary Information, at any time after termination of such engagement. All Inventions shall
be the sole property of the Company, and Employee agrees to perform the provisions of this Section 8 with respect thereto without
the payment by the Company of any royalty or any consideration therefore other than the regular compensation paid to the Employee
in the capacity of an employee or consultant.

(b)The Employee
hereby assigns to the Company all of his rights to such Inventions, and to applications for United States and/or foreign letters
patent or copyrights and to United States and/or foreign letters patent or copyrights granted upon such Inventions.

(c)The Employee
shall acknowledge and deliver promptly to the Company, without charge to the Company, but at its expense, such written instruments
(including applications and assignments) and do such other acts, such as giving testimony in support of the Employee’s inventorship,
as may be necessary in the opinion of the Company to obtain, maintain, extend, reissue and enforce United States and/or foreign
letters patent and copyrights relating to the Inventions and to vest the entire right and title thereto in the Company or its nominee.
The Employee acknowledges and agrees that any copyright developed or conceived of by the Employee during the term of Employee’s
employment which is related to the business of the Company shall be a “work for hire” under the copyright law of the
United States and other applicable jurisdictions.

(d)No provisions
of this Section shall be deemed to limit the restrictions applicable to the Employee under Section 7.

(e)No provisions
of this Section shall be deemed or construed to require the Employee to assign to the Company any rights or intellectual property
with respect to any invention which is created by the Employee entirely on his own time.

9.SHOP RIGHTS.
The Company shall also have the royalty-free right to use in its business, and to make, use and sell products, processes and/or
services derived from any inventions, discoveries, concepts and ideas, whether or not patentable, including but not limited to
processes, methods, formulas and techniques, as well as improvements thereof or know-how related thereto, which are not within
the scope of Inventions as defined in Section 8 but which are conceived or made by the Employee during the period he is engaged
by the Company or with the use or assistance of the Company’s facilities, materials or personnel.

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10.REMEDIES.
The Employee hereby acknowledges and agrees that a breach of the agreements contained in this Agreement will cause irreparable
harm and damage to the Company, that the remedy at law for the breach or threatened breach of the agreements set forth in this
Agreement will be inadequate, and that, in addition to all other remedies available to the Company for such breach or threatened
breach (including, without limitation, the right to recover damages), the Company shall be entitled to injunctive relief for any
breach or threatened breach of the agreements contained in this Agreement.

11.ARBITRATION.
Any controversy or claim arising out of or relating to this Agreement shall be settled by arbitration administered by the American
Arbitration Association under its National Rules for the Resolution of Employment Disputes and judgment upon the award rendered
by the arbitrator(s) may be entered in any court having jurisdiction thereof. The place of arbitration shall be San Francisco,
California, or Marin County, California. The arbitrators shall have no authority to award punitive or other damages not measured
by the prevailing party’s actual damages, except as may be required by statute. The prevailing party shall be entitled to
an award of reasonable attorney fees. Each party shall bear its own costs and expenses and an equal share of the arbitrators’
and administrative fees of arbitration.

12.SUCCESSORS.
This Agreement and all rights of the Employee shall inure to the benefit of and be enforceable by the Employee’s personal
or legal representatives, estates, executors, administrators, heirs and beneficiaries. In the event of the Employee’s death,
all amounts payable to the Employee under this Agreement shall be paid to the Employee’s estate, or if directed under a benefit
plan, to such beneficiaries of such plan. This Agreement shall inure to the benefit of, be binding upon and be enforceable by,
any successor, surviving or resulting company or other entity to which all or substantially all of the business and assets of the
Company shall be transferred whether by merger, consolidation, transfer or sale. This Agreement shall not be assignable by the
Employee.

13.ENFORCEMENT.
The provisions of this Agreement shall be regarded as divisible, and if any of said provisions or any part hereof are declared
invalid or unenforceable by a court of competent jurisdiction, the validity and enforceability of the remainder of such provisions
or parts hereof and the applicability thereof shall not be affected thereby.

14.AMENDMENT.
This Agreement may not be amended during its term, except by written instrument executed by the Company and the Employee.

15.SURVIVABILITY.
The provisions of Sections 7, 8, 9, 10, 11, 12, and 18 shall survive termination of this Agreement.

16.NO CONFLICT
WITH PRIOR EMPLOYMENT. The Employee hereby represents and warrants to the Company that the execution, delivery and performance
of this Agreement by the Employee does not and will not conflict with, or result in breach or default under, or require the consent
of, any other party under any agreement, including, but not limited to, any prior employment or consulting agreement, to which
the Employee is or was a party.

17.ENTIRE
AGREEMENT. This Agreement sets forth the entire agreement between the Employee and the Company with respect to the subject
matter hereof, and supersedes all prior oral or written agreements, negotiations, commitments and understandings with respect thereto,
including, but not limited to, any prior consulting agreement(s), whether written or oral.

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18.GOVERNING
LAW. This agreement shall be governed by and interpreted in accordance with the laws of the State of California without giving
effect to the provisions, principles, or policies thereof relating to choice or conflicts of laws. The parties acknowledge that
this Agreement evidences a transaction involving interstate commerce. The United States Arbitration Act shall govern the interpretation,
enforcement, and proceedings pursuant to the arbitration clause in this Agreement.

19.NOTICE.
Notices given pursuant to this Agreement shall be in writing and shall be deemed given when received, and if mailed, shall be mailed
by United States registered or certified mail, return receipt requested, addressee only, postage prepaid, if to the Company, to:

	                    Company:		Colombia Clean Power & Fuels Inc.

245 Sir Francis
Drake Boulevard

San Anselmo,
CA 94960

Attn: Barry G.
Markowitz, Chairman

 

	                    Employee:		Ronald G. Stovash

16496 Felicita
Court

Naples, FL 34110-3267

 

or to such other address as the Company
shall have given to the Employee or, if to the Employee, to such address as the Employee shall have given to the Company.

20.NO WAIVER.
No waiver by either party at any time of any breach by the other party of, or compliance with, any condition or provision of this
Agreement to be performed by the other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same time or any prior or subsequent time.

21.HEADINGS.
The headings herein contained are for reference only and shall not affect the meaning or interpretation of any provision of
this Agreement.

22.COUNTERPARTS.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together
will constitute one and the same instrument.

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IN WITNESS WHEREOF, each of the
parties hereto has executed this Employment Agreement the respective day and year set forth below.

	 	“COMPANY”
	 	 
	 	Colombia Clean Power & Fuels,
Inc.
	 	 
	 	 
	Date: August 22, 2011	By: 	/s/ Edward P. Mooney
	 	 	Edward P. Mooney, Chief Executive Officer

 

	 	“EMPLOYEE”
	 	 
	 	 
	Date: August 23, 2011 	/s/ Ronald G. Stovash
	 	Ronald G. Stovash
	 	 	 

 

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Exhibit A

TERMINATION
CERTIFICATION AND General RELEASE

 

Certification

 

This is to certify that I do not have in my
possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications,
drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items
belonging to Colombia Clean Power & Fuels, Inc., its subsidiaries, affiliates, successors or assigns (together, the
“Company”).

 

I further agree that, in compliance with Section
7, Nondisclosure of Proprietary Information, of the Agreement, I will preserve as confidential all Proprietary Information
(as defined in the Agreement) or other subject matter pertaining to any business of the Company or any of its employees, clients,
consultants or licensees.

 

I further certify that I have complied with
all the terms of Section 8, Assignment of Inventions, of the Employment Agreement dated September 1, 2011, with the Company
(the “Agreement”), incorporated herein by this reference.

 

General Release.

 

In consideration for my employment as provided
in the Agreement, I hereby release and forever discharge the Company and its predecessors, successors, partners, assigns, employees,
shareholders, owners, officers, directors, agents, attorneys, subsidiaries, divisions, and affiliates, (jointly referred to as
“Released Parties”) from any and all claims, demands, causes of action, obligations, damages, attorneys’
fees, costs and liabilities of any nature whatsoever, whether or not now known, suspected or asserted, which I may have or claim
to have against the Released Parties relating in any manner to my employment with the Company and/or the termination of such employment,
and hereby covenant not to assert such claims through a lawsuit, an administrative proceeding or otherwise. This general release
includes, but is not limited to, claims arising under federal, state or local laws prohibiting employment discrimination or claims
arising out of any legal restrictions on the Company’s rights to terminate its employees, including without limitation of
the Age Discrimination in Employment Act of 1967, as amended; Title VII of the Civil Rights Act of 1964, as amended; the Civil
Rights Act of 1991, as amended; and the Americans with Disabilities Act of 1990, as amended.

 

I waive all rights under Section 1542 of the
Civil Code of California. That section reads as follows:

 

 

Colombia Clean Power & Fuels, Inc

245 Sir Francis Drake Boulevard

San Anselmo, CA 94930

+1 415 460 1165

 

    	 

    	 

    

 

A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by
him must have materially affected his settlement with the debtor.

 

Notwithstanding the provisions of Section 1542
or any similar law of any other state, and to provide a full and complete release of Released Parties, I expressly acknowledge
that this Termination Certification and General Release is intended to include, without limitation, all claims which I do not know
or suspect to exist in my favor at the time of execution of this document, and that the Severance Payments (as defined in the Agreement)
as agreed upon in the Agreement completely extinguishes all such claims.

 

 

	Date:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	Signature
	 	 	 	 
	 	 	 	 
	 	 	 	Please Print Name
	 	 	 	 	 

 

 

Colombia Clean Power & FuelsConsulting
Agreement

 

 

This Consulting Agreement
(the “Agreement”), dated this 1st day of September 2011, (the “Effective Date”) is by and
between Colombia Clean Power & Fuels, Inc., a Nevada corporation (hereinafter referred to as the “Company”),
and Edward P Mooney, an individual residing in the State of California (hereinafter referred to as the “Service Provider”).

 

Recitals:

 

A.The Company had
previously engaged the Service Provider as the Chief Executive Officer of the Company and had entered into an employment agreement
dated July 1, 2010, as amended (the “Employment Agreement”) under which the Service Provider provided services
to the Company as an employee.

 

B.Effective August
26, 2011, the Company engaged a new Chief Executive Officer and the Service Provider ceased providing services as the CEO.

 

C.The Company desires
to terminate the Employment Agreement and to enter into this consulting arrangement with the Service Provider to provide certain
consulting services for the Company as set forth in this Agreement.

 

D.The Service Provider
is in the business of providing such consulting services and has agreed to provide the services on the terms and conditions set
forth in this Agreement.

 

E.The Service Provider
is also a director of the Company and it is intended that the compensation paid to the Service Provider as set forth herein will
compensate him for the services provided as a director.

 

Now,
therefore, in consideration of the faithful performance of the obligations set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Service Provider and the Company hereby agree
as follows.

 

1.Engagement.
The Company hereby engages the Service Provider, and the Service Provider hereby accepts the engagement, to provide certain consulting
services for the Company subject to and in compliance with the terms and conditions of this Agreement. At the request of the Company,
the Service Provider shall serve on and chair the compensation committee of the Board of Directors.

 

2.Term of Service.
The Company hereby retains the Service Provider for a period of two (2) years beginning as of the Effective Date and continuing
until and through August 31, 2013, unless further extended or sooner terminated as provided in Section 7 below (the “Term”).
Any extended term shall be “at will” and may be terminated at any time with or without cause by either party. The Term
and any extension thereof shall be referred to herein as the “Consulting Period.”

 

3.Services to
Be Provided.

 

a.Services. During
the Consulting Period the Service Provider shall provide the following services to the Company (the “Services”):

 

    	 

    	 

    

 

(i)Assist in
certain investor relations, public relations, and corporate communication efforts of the Company in conjunction with the CEO, CFO
and other employees and consultants;

(ii)Aid the
new CEO during a transition period in his duties and obligations as the chief executive officer and president of the Company;

(iii)Assist
management in the development and implementation of an overall corporate social responsibility program consistent with legal requirements
in the Republic of Colombia;

(iv)Aid and
assist the Company in the Company’s efforts to secure financing by assisting in the development of offering materials, presentations;

(v)Participation
in standing or special committees of the company and/or the board of directors as requested by management; and

(vi)Provide
such additional services to which the parties may agree in writing.

 

b.Manner of Services
Provided. The Service Provider agrees that the Services will be rendered in a “workmanlike manner,” consistent
with the manner of performance by other consultants providing the same or similar services as being rendered hereunder. The Service
Provider shall coordinate all Services performed under this Agreement with the Chairman.

 

4.Devotion of
Time. During the Consulting Period, the Service Provider shall expend adequate working time to perform the Services; shall
devote his reasonable commercial efforts, energy and skill to the services of the Company and the promotion of its interests; and
shall not take part in activities detrimental to the best interests of the Company. Nothing in this Agreement shall preclude the
Service Provider during the term of this Agreement from engaging, directly or indirectly, in any business activity which is not
competitive with the then existing business of the Company; provided that nothing in this Agreement shall prohibit the Service
Provider from providing services to LIFE Power & Fuels, LLC or any of its affiliates.

 

5.Service Provider
Not a Broker-Dealer. The Company acknowledges that the Service Provider is not licensed as a broker-dealer under applicable
federal and state securities laws. Consequently, none of the investor relations or other Services hereunder are intended to be
those of a broker-dealer.

 

6.Compensation.
In consideration for services provided by the Service Provider to the Company as a consultant and as a member of the Board of Directors,
the Company shall provide the following compensation to Service Provider:

 

a.Compensation as
a Service Provider. In consideration of the Services to be rendered hereunder, the Company agrees to pay the Service Provider
a fee of $2,500 per month during the Term of this Agreement, commencing with a payment on September 1, 2011. The fee shall be paid
to Service Provider on a monthly basis as determined by the Company. Fees earned during any partial month shall be adjusted on
a pro rata basis by the number of days during such month.

 

b.Compensation as
a Director. So long as the Service Provider shall serve as a director of the Company, the Company shall pay him a director’s
fee of $1,500 per month for all services provided as a director of the Company, including attendance at regular or special meetings
of the Board of Directors, but excluding out-of-pocket expenses incurred by the Service Provider for travel or other related expenses
as a director, commencing with a payment on September 1, 2011.

 

    	2

    	 

    

 

c.Reimbursable Expenses.
The Company agrees to reimburse the Service Provider for all direct expenses authorized by the Company incurred during the Term
of this Agreement and related to providing the Services. The Service Provider shall submit invoices for such expenses and shall
provide such supporting information and documentation as the Company may reasonably request in accordance with Company policy and
the requirements of the Internal Revenue Code. The Company shall pay such invoices within ten (10) days of receipt.

 

7.Termination
and Extension. The Term shall be sooner terminated or further extended under the following circumstances:

 

a.Termination for
Cause. The Company shall be entitled, with or without prior notice, to terminate this Agreement for cause, in which case no
consulting fees or other compensation payable pursuant to Section 6(a) (other than such fees that have already been earned by Service
Provider) shall be payable to Service Provider after such termination. “Cause” means Service Provider’s (i) gross
negligence in the performance or non-performance of any material duties to the Company; (ii) commission of any material criminal
act or fraud or of any act that affects adversely the reputation of the Company; (iii) habitual neglect of his duties that he is
required to perform under this Agreement; (iv) dishonesty; or (v) gross misconduct. Such termination shall not prejudice any other
remedy under law or equity of the Company and the failure of the Company to terminate Service Provider when cause exists shall
not constitute the waiver of the Company’s right to terminate this Agreement at a later time. Termination under this Section
shall be considered “for cause” for purposes of this Agreement.

 

b.Extension of
Term. The initial Term may be further extended with the express authorization of the Company’s Board of Directors and
Service Provider. Any extended term may be terminated at any time at the will of the Board of Directors, with or without cause.

 

c.Mutual Consent.
The parties hereto may mutually agree to terminate this Agreement at any time subject to such terms and conditions as to which
the parties shall agree in writing.

 

8.Confidential
Information. Service Provider recognizes and acknowledges that certain information, including, but not limited to, information
pertaining to the financial condition of the Company, its systems, methods of doing business, agreements with customers or suppliers,
or other aspects of the business of the Company or which are sufficiently secret to derive economic value from not being disclosed
(hereinafter “Confidential Information”) may be made available or otherwise come into the possession of the
Service Provider by reason of this engagement with the Company. Accordingly, the Service Provider agrees that neither he nor any
agent, employee, or representative will (either during or after the term of this Agreement) disclose any Confidential Information
to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever or make use to his, its or
their personal advantage or to the advantage of any third party, of any Confidential Information, without the prior written consent
of the Company. The parties hereto agree that the provisions of this Section shall not apply with respect to any information that
the Service Provider can document (i) is or becomes (through no improper action or inaction by the Service Provider or any affiliate,
agent, consultant or employee) generally available to the public, or (ii) was in its possession or known by it without any limitation
on use or disclosure prior to the Effective Date. Service Provider shall, upon termination of this engagement, return to the Company,
and shall cause his agents, employees, and representatives to return to the Company, all documents which reflect Confidential Information
(including copies thereof). Notwithstanding anything heretofore stated in this paragraph, the Service Provider’s obligations
under this Agreement shall not, after termination of Service Provider’s engagement with the Company, apply to information
which has become generally available to the public without any action or omission of the Service Provider (except that any Confidential
Information which is disclosed to any third party by an employee or representative of the Company who is authorized to make such
disclosure shall be deemed to remain confidential and protectable under this provision).

 

    	3

    	 

    

 

9.Trading Practices.
So long as the Service Provider is in possession of any material non-public information of the Company, the Service Provider shall
not, directly or indirectly engage in the purchase or sale the common stock of the Company; provided that Service Provider may
sell shares under a 10b5-1 plan during such period. In addition, the Service Provider agrees to comply with any trading policies
hereafter adopted by the Company applicable to management, employees, or consultants to the Company. During the Term of this Agreement,
and for a period of one year after the termination of this Agreement, the Service Provider shall not, directly or indirectly, engage
in any short selling activities of the common stock of the Company.

 

10.Indemnification
of Service Provider.

 

a.Indemnification.
The Company covenants and agrees to defend, indemnify and hold harmless the Service Provider from and against any damages (including
reasonable attorneys’, accountants’, and experts’ fees, disbursements of counsel, and other related costs and
expenses) arising out of or resulting from: (A) any inaccuracy in or breach of any representation or warranty made by the Company
in this Agreement; or (B) the failure by the Company to perform or observe any covenant, agreement or condition to be performed
or observed by it pursuant to this Agreement.

 

b.Third Party Claims.

 

(i)If any party entitled to be indemnified
pursuant to Paragraph (a) of this Section (an “Indemnified Party”) receives notice of the assertion by any third
party of any claim or of the commencement by any such third person of any actual or threatened claim, action, suit, arbitration,
hearing, inquiry, proceeding, complaint, charge or investigation by or before any governmental entity or arbitrator and an appeal
from any of the foregoing (any such claim or Action being referred to herein as an “Indemnifiable Claim”) with
respect to which another party hereto (an “Indemnifying Party”) is or may be obligated to provide indemnification,
the Indemnified Party shall promptly notify the Indemnifying Party in writing (the “Claim Notice”) of the Indemnifiable
Claim; provided, that the failure to provide such notice shall not relieve or otherwise affect the obligation of the Indemnifying
Party to provide indemnification hereunder, except to the extent that any damages directly resulted or were caused by such failure.

 

(ii)The Indemnifying Party shall have
thirty (30) days after receipt of the Claim Notice to undertake, conduct and control, through counsel of its own choosing, and
at its expense, the settlement or defense thereof, and the Indemnified Party shall cooperate with the Indemnifying Party in connection
therewith; provided, that (A) the Indemnifying Party shall permit the Indemnified Party to participate in such settlement or defense
through counsel chosen by the Indemnified Party (subject to the consent of the Indemnifying Party, which consent shall not be unreasonably
withheld), provided that the fees and expenses of such counsel shall not be borne by the Indemnifying Party, and (Bi) the Indemnifying
Party shall not settle any Indemnifiable Claim without the Indemnified Party’s consent. So long as the Indemnifying Party
is vigorously contesting any such Indemnifiable Claim in good faith, the Indemnified Party shall not pay or settle such claim without
the Indemnifying Party’s consent, which consent shall not be unreasonably withheld.

 

(iii)If the Indemnifying Party does
not notify the Indemnified Party within thirty (30) days after receipt of the Claim Notice that it elects to undertake the defense
of the Indemnifiable Claim described therein, the Indemnified Party shall have the right to contest, settle, or compromise the
Indemnifiable Claim in the exercise of its reasonable discretion; provided, that the Indemnified Party shall notify the Indemnifying
Party of any compromise or settlement of any such Indemnifiable Claim.

 

    	4

    	 

    

 

c.Indemnification Non-Exclusive.
The foregoing indemnification provisions are in addition to, and not in derogation of, any statutory, equitable, or common-law
remedy any party may have for breach of representation, warranty, covenant or agreement.

 

11.Independent
Contractor. Service Provider agrees that in performing this Agreement, he is acting as an independent contractor and not
as an employee, representative, or agent of the Company and shall provide all facilities and equipment necessary to fulfill his
obligations hereunder. As an independent contractor, the Service Provider shall make no representation as an agent or employee
of the Company, shall have no authority to bind the Company or incur other obligations on behalf of the Company, and shall not
be eligible for any benefits which the Company may provide to its employees. Likewise, the Company shall have no authority to bind
or incur obligations on behalf of the Service Provider. All persons hired or retained by Service Provider to perform this Agreement,
including, but not limited to, his employees, representatives, and agents, shall be employees or contractors of the Service Provider
and shall not be construed as employees or agents of the Company in any respect. The Service Provider shall be responsible for
all taxes, insurance and other costs and payments legally required to be withheld or provided in connection with Service Provider’s
performance of this Agreement, including without limitation, all withholding taxes, worker’s compensation insurance, and
similar costs. The Service Provider shall abide by all laws, rules, and regulations pertaining to the Services to be provided hereunder.

 

12.Miscellaneous
Provisions.

 

a.Notice. All
notices required or permitted hereunder shall be in writing and shall be deemed effective: (i) upon personal delivery; (ii) in
the case of delivery by mail within the continental United States, on the fourth (4th) business day after such notice
or other communication shall have been deposited in the mail, postage prepaid, return receipt requested; (iii) when sent by either
facsimile or email at the applicable facsimile number or email address set forth below upon confirmation of transmission or receipt
of mailing; or (iv) in the case of delivery by internationally recognized overnight delivery service, when received, addressed
as follows:

 

If to the Company
to:

One Embarcadeo Center,
Suite 500 94111

Attn: Chief Financial
Officer

FAX: (415)
532-1357

Email: jflores@colombiacleanpower.com

 

With a copy (which
shall not constitute notice) to:

Ronald N. Vance

Attorney at Law

1656 Reunion Avenue

Suite 250

South Jordan, UT 84095

FAX: (801) 446-8802

Email: ron@vancelaw.us

 

    	5

    	 

    

 

If to the Service
Provider, to:

Edward P
Mooney

245 Sir Francis
Drake Blvd

San Anselmo CA
94960

FAX: (415) 532-1357

Email: edwardpmooney@aol.com

 

or to such other address or addresses, facsimile
number or numbers, or email address or addresses as either party shall designate to the other in writing from time to time by like
notice.

 

b.Entire Agreement;
Modification; Waiver. This Agreement constitutes the entire agreement between or among the parties pertaining to the subject
matter contained in it and supersedes all prior and contemporaneous agreements, representations, and understandings of the parties.
No supplement, modification, or amendment of this Agreement will be binding unless executed in writing by all the parties or the
applicable parties to be bound by such amendment. No waiver of any of the provisions of this Agreement will constitute a waiver
of any other provision, whether or not similar, nor will any waiver constitute a continuing waiver. No waiver will be binding unless
executed in writing by the party making the waiver. Notwithstanding the foregoing, the parties hereto expressly terminate the Employment
Agreement effective May 1, 2011, and the Service Provider expressly waives any right to any Termination Payment (as defined in
the Employment Agreement) as provided in Section 13(b) of the Employment Agreement or otherwise and to any performance compensation
as provided in Section 6(b) of the Agreement.

 

c.Survival of Covenants,
Etc. All covenants, representations and warranties made herein shall survive the making of this Agreement and shall continue
in full force and effect for a period of two years from the termination date of this Agreement, at the end of which period no claim
may be made with respect to any such covenant, representation, or warranty unless such claim shall have been asserted in writing
to the indemnifying party during such period.

 

d.Assignment.
This Agreement, as it relates to the engagement of the Service Provider, is a personal contract and the rights and interests of
the Service Provider hereunder may not be sold, transferred, assigned, pledged or hypothecated, without the prior written consent
of the Company, which consent may be withheld for any reason.

 

e.Binding on Successors.
This Agreement will be binding on, and will inure to the benefit of, the parties to it and their respective successors, and assigns.

 

f.Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California applicable to contracts
made and to be performed in such State, without reference to the choice of law principals thereof.

 

g.Arbitration.
In the event of any dispute, claim, question, or disagreement arising from or relating to this Agreement or the breach thereof,
the parties hereto shall use their best efforts to settle the dispute, claim, question, or disagreement. If the dispute cannot
be settled through negotiation, the parties agree first to try in good faith to settle the dispute by mediation administered by
the American Arbitration Association under its Commercial Mediation Procedures before resorting to arbitration, litigation, or
some other dispute resolution procedure. Any unresolved controversy or claim arising from or relating to this contract or breach
thereof shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial
Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
If all parties to the dispute agree, a mediator involved in the parties’ mediation may be asked to serve as the arbitrator.
The arbitrator selected by the claimant and the arbitrator selected by respondent shall, within ten days of their appointment,
select a third neutral arbitrator. In the event that they are unable to do so, the parties or their attorneys may request the American
Arbitration Association to appoint the third neutral arbitrator. Prior to the commencement of hearings, each of the arbitrators
appointed shall provide an oath or undertaking of impartiality. The place of arbitration shall be the City of San Francisco, State
of California. The prevailing party shall be entitled to an award of reasonable attorney fees. Each party shall bear its own costs
and expenses and an equal share of the arbitrators’ and administrative fees of arbitration. Except as may be required by
law, neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the
prior written consent of both parties.

 

    	6

    	 

    

 

h.Preliminary Relief.
Either party may apply to the arbitrator seeking injunctive relief until the arbitration award is rendered or the controversy is
otherwise resolved. Either party also may, without waiving any remedy under this agreement, seek from any court having jurisdiction
any interim or provisional relief that is necessary to protect the rights or property of that party, pending the establishment
of the arbitral tribunal (or pending the arbitral tribunal’s determination of the merits of the controversy).

 

i.Rights Are Cumulative.
The rights and remedies granted to the parties hereunder shall be in addition to and cumulative of any other rights or remedies
either may have under any document or documents executed in connection herewith or available under applicable law. No delay or
failure on the part of a party in the exercise of any power or right shall operate as a waiver thereof nor as an acquiescence in
any default nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the
exercise of any other power or right.

 

j.Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of final jurisdiction, it is the intent of the
parties that all other provisions of this Agreement be construed to remain fully valid, enforceable, and binding on the parties
if the essential terms and conditions of this Agreement for each party remain valid, binding and enforceable.

 

k.Drafting. This
Agreement was drafted with the joint participation of the parties and/or their legal counsel. Any ambiguity contained in this Agreement
shall not be construed against any party as the draftsman, but this Agreement shall be construed in accordance with its fair meaning.

 

l.Headings. The
descriptive headings of the various paragraphs or parts of this Agreement are for convenience only and shall not affect the meaning
or construction of any of the provisions hereof.

 

m.Number and Gender.
Wherever from the context it appears appropriate, each term stated in either the singular or the plural shall include the singular
and the plural, and pronouns stated in either the masculine, the feminine, or the neuter gender shall include the masculine, feminine,
and neuter.

 

n.Counterparts; Facsimile
Execution. This Agreement may be executed in any number of counterparts and all such counterparts taken together shall be deemed
to constitute one instrument. Delivery of an executed counterpart of this Agreement by facsimile or email shall be equally as effective
as delivery of a manually executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement
by facsimile or email also shall deliver a manually executed counterpart of this Agreement, but the failure to deliver a manually
executed counterpart shall not affect the validity, enforceability, or binding effect of this Agreement.

 

    	7

    	 

    

 

o.Full Knowledge.
By their signatures, the parties acknowledge that they have carefully read and fully understand the terms and conditions of this
Agreement, that each party has had the benefit of counsel, or has been advised to obtain counsel, and that each party has freely
agreed to be bound by the terms and conditions of this Agreement.

 

Signature
Page Follows

    	8

    	 

    

 

Signature
Page

 

 

In
Witness Whereof, each of the parties hereto, thereunto duly authorized, has executed this Agreement the respective day and
year set forth below.

 

	Company:	Colombia
Clean Power & Fuels, Inc.
	 	 
	 	 
	Date: September 15, 2011	By	/s/ Ronald G. Stovash
	 	Name: Ronald G. Stovash
	 	Title: CEO
	 	 
	 	 
	Service Provider:	 
	 	 
	 	 
	Date: September 15, 2011	/s/ Edward P Mooney
	 	Edward P Mooney, as an individual

    	9

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