Document:

exv10w1

Exhibit 10.1

GLORI OIL LIMITED

AMENDED AND RESTATED

2006 STOCK OPTION AND GRANT PLAN

SECTION 1. GENERAL PURPOSE OF THE PLAN; DEFINITIONS

     The name of the plan is the Glori Oil Limited 2006 Stock Option and Grant Plan (the “Plan”).
The purpose of the Plan is to encourage and enable the officers, employees, directors and other key
persons (including consultants and prospective employees) of Glori Oil Limited (including any
successor entity, the “Company”) and its subsidiaries upon whose judgment, initiative and efforts
the Company largely depends for the successful conduct of its business to acquire a proprietary
interest in the Company. It is anticipated that providing such persons with a direct stake in the
Company’s welfare will assure a closer identification of their interests with those of the Company,
thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain
with the Company.

     The following terms shall be defined as set forth below:

     “Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

     “Affiliate” of any Person means a Person that directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with the first mentioned
Person. A Person shall be deemed to control another Person if such first Person possesses directly
or indirectly the power to direct, or cause the direction of, the management and policies of the
second Person, whether through the ownership of voting securities, by contract or otherwise.

     “Award” or “Awards,” except where referring to a particular category of grant under the Plan,
shall include Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock Awards,
Unrestricted Stock Awards or any combination of the foregoing.

     “Bankruptcy” shall mean (i) the filing of a voluntary petition under any bankruptcy or
insolvency law, or a petition for the appointment of a receiver or the making of an assignment for
the benefit of creditors, with respect to the Holder, or (ii) the Holder being subjected
involuntarily to such a petition or assignment or to an attachment or other legal or equitable
interest with respect to the Holder’s assets, which involuntary petition or assignment or
attachment is not discharged within 60 days after its date, and (iii) the Holder being subject to a
transfer of its Issued Shares by operation of law (including by divorce, even if not insolvent),
except by reason of death.

     “Board” means the Board of Directors of the Company.

 

 

     “Cause” means dismissal as a result of (i) the commission of any act by a grantee constituting
financial dishonesty against the Company or its Subsidiaries (which act would be chargeable as a
crime under applicable law); (ii) a grantee’s engaging in any other act of dishonesty, fraud,
intentional misrepresentation, moral turpitude, illegality or harassment which, as determined in
good faith by the Board, would: (A) materially adversely affect the business or the reputation of
the Company or any of its Subsidiaries with their respective current or prospective customers,
suppliers, lenders and/or other third parties with whom such entity does or might do business; or
(B) expose the Company or any of its Subsidiaries to a risk of civil or criminal legal damages,
liabilities or penalties; (iii) the repeated failure by a grantee to follow the directives of the
chief executive officer of the Company or any of its Subsidiaries or Board, or (iv) any material
misconduct, violation of the Company’s or Subsidiaries’ policies, or willful and deliberate
non-performance of duty by the grantee in connection with the business affairs of the Company or
its Subsidiaries.

     “Code” means the Internal Revenue Code of 1986, as amended, and any successor Code, and
related rules, regulations and interpretations.

     “Committee” means the Committee of the Board referred to in Section 2.

     “Effective Date” means the date on which the Plan is approved by stockholders as set forth at
the end of this Plan.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

     “Fair Market Value” of the Stock on any given date means the fair market value of the Stock
determined in good faith by the Committee.

     “Holder” means, with respect to an Award or any Issued Shares, the Person holding such Award
or Issued Shares, including the initial recipient of the Award or any Permitted Transferee.

     “Incentive Stock Option” means any Stock Option designated and qualified as an “incentive
stock option” as defined in Section 422 of the Code.

     “Issued Shares” means, collectively, all outstanding Shares issued pursuant to Restricted
Stock Awards, all outstanding Shares issued pursuant to Unrestricted Stock Awards, and all Option
Shares.

     “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option.

     “Option Shares” means outstanding shares of Stock that were issued to a Holder upon the
exercise of a Stock Option.

     “Permitted Transferees” shall mean any of the following to whom a Holder may transfer Issued
Shares hereunder (as set forth in Section 9(a)(ii)(A)): the Holder’s spouse, children (natural or
adopted), stepchildren, brothers, sisters or a trust for their sole benefit of which the Holder is
the settlor; provided, however, that any such trust does not require or permit

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distribution of any Issued Shares during the term of this Agreement unless subject to its
terms. Upon the death of the Holder, the term Permitted Transferees shall also include such
deceased Holder’s estate, executions, administrations, personal representations, heirs, legatees
and distributees, as the case may be.

     “Person” shall mean any individual, corporation, partnership (limited or general), limited
liability company, limited liability partnership, association, trust, joint venture, unincorporated
organization or any similar entity.

     “Option” or “Stock Option” means any option to purchase shares of Stock granted pursuant to
Section 6.

     “Repurchase Event” means (i) a Termination Event, (ii) the Holder’s Bankruptcy, or (iii) the
consummation of a Sale Event.

     “Restricted Stock Award” means Awards granted pursuant to Section 7 and “Restricted

     “Stock” means Shares granted pursuant to such Awards.

     “Sale Event” means the consummation of (i) the dissolution or liquidation of the Company, (ii)
the sale of all or substantially all of the assets of the Company on a consolidated basis to an
unrelated person or entity, (iii) a merger, reorganization or consolidation in which the
outstanding shares of Stock are converted into or exchanged for securities of the successor entity
and the holders of the Company’s outstanding voting power immediately prior to such transaction do
not own at least a majority of the outstanding voting power of the successor entity immediately
upon completion of such transaction, (iv) the sale of all or a majority of the Stock of the Company
to an unrelated person or entity, or (v) any other transaction in which the holders of the
Company’s outstanding voting power immediately prior to such transaction do not own at least a
majority of the outstanding voting power of the Company or a successor entity immediately upon
completion of the transaction.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
thereunder.

     “Shares” means shares of Stock.

     “Stock” means the Common Stock, par value $.0001 per share, of the Company, subject to
adjustments pursuant to Section 3.

     “Subsidiary” means any corporation or other entity (other than the Company) in which the
Company has a controlling interest, either directly or indirectly.

     “Termination Event” means the termination of the Award recipient’s employment or service
relationship with the Company and its Subsidiaries for any reason whatsoever, regardless of the
circumstances thereof, and including, without limitation, upon death, disability, retirement,
discharge or resignation for any reason, whether voluntarily or involuntarily. The following shall
not constitute a Termination Event: (i) a transfer to the employment of the Company from a
Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another Subsidiary

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or (ii) an approved leave of absence for military service or sickness, or for any other
purpose approved by the Committee, if the employee’s right to re-employment is guaranteed either by
a statute or by contract or under the policy pursuant to which the leave of absence was granted or
if the Committee otherwise so provides in writing.

     “Unrestricted Stock Award” means any Award granted pursuant to Section 8 and “Unrestricted
Stock” means Shares granted pursuant to such Awards.

SECTION 2. ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT GRANTEES AND DETERMINE
AWARDS

     (a) Administration of Plan. The Plan shall be administered by the Board, or at the
discretion of the Board, by a committee of the Board, comprised of not less than two Directors.
All references herein to the Committee shall be deemed to refer to the group then responsible for
administration of the Plan at the relevant time (i.e., either the Board of Directors or a committee
or committees of the Board, as applicable).

     (b) Powers of Committee. The Committee shall have the power and authority to grant
Awards consistent with the terms of the Plan, including the power and authority:

          (i) to select the individuals to whom Awards may from time to time be granted;

          (ii) to determine the time or times of grant, and the extent, if any, of Incentive Stock
Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards or any
combination of the foregoing, granted to any one or more grantees;

          (iii) to determine the number of shares of Stock to be covered by any Award;

          (iv) to determine and modify from time to time the terms and conditions, including
restrictions, not inconsistent with the terms of the Plan, of any Award, which terms and conditions
may differ among individual Awards and grantees, and to approve the form of written instruments
evidencing the Awards;

          (v) to accelerate at any time the exercisability or vesting of all or any portion of any
Award;

          (vi) to impose any limitations on Awards granted under the Plan, including limitations on
transfers, repurchase provisions and the like and to exercise repurchase rights or obligations;

          (vii) subject to any restrictions applicable to Incentive Stock Options, to extend at any time
the period in which Stock Options may be exercised; and

          (viii) at any time to adopt, alter and repeal such rules, guidelines and practices for
administration of the Plan and for its own acts and proceedings as it shall deem advisable; to
interpret the terms and provisions of the Plan and any Award (including related written

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instruments); to make all determinations it deems advisable for the administration of the
Plan; to decide all disputes arising in connection with the Plan; and to otherwise supervise the
administration of the Plan.

     All decisions and interpretations of the Committee shall be binding on all persons, including
the Company and Plan grantees.

     (c) Indemnification. Neither the Board nor the Committee, nor any member of either or
any delegatee thereof, shall be liable for any act, omission, interpretation, construction or
determination made in good faith in connection with the Plan, and the members of the Board and the
Committee (and any delegatee thereof) shall be entitled in all cases to indemnification and
reimbursement by the Company in respect of any claim, loss, damage or expense (including, without
limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent
permitted by law and/or under any directors’ and officers’ liability insurance coverage which may
be in effect from time to time.

SECTION 3. STOCK ISSUABLE UNDER THE PLAN; CHANGES IN STOCK; SUBSTITUTION

     (a) Stock Issuable. The maximum number of Shares reserved and available for issuance
under the Plan shall be 455,374 Shares, subject to adjustment as provided in Section 3(b). For
purposes of this limitation, the Shares underlying any Awards which are forfeited, canceled,
reacquired by the Company, satisfied without the issuance of Stock or otherwise terminated (other
than by exercise) shall be added back to the Shares available for issuance under the Plan. Subject
to such overall limitation, Shares may be issued up to such maximum number pursuant to any type or
types of Award. The Shares available for issuance under the Plan may be authorized but unissued
Shares or Shares reacquired by the Company and held in its treasury.

     (b) Changes in Stock. Subject to Section 4 hereof, if, as a result of any
reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar change in the Company’s capital stock, the outstanding shares of Stock are
increased or decreased or are exchanged for a different number or kind of shares or other
securities of the Company, or additional shares or new or different shares or other securities of
the Company or other non-cash assets are distributed with respect to such shares of Stock or other
securities, or, if, as a result of any merger, consolidation or sale of all or substantially all of
the assets of the Company, the outstanding shares of Stock are converted into or exchanged for a
different number or kind of securities of the Company or any successor entity (or a parent or
subsidiary thereof), the Committee shall make an appropriate or proportionate adjustment in (i) the
maximum number of shares reserved for issuance under the Plan, (ii) the number and kind of shares
or other securities subject to any then outstanding Awards under the Plan, (iii) the repurchase
price per share subject to each outstanding Award, if any, and (iv) the exercise price and/or
exchange price for each share subject to any then outstanding Stock Options under the Plan, without
changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock
Options) as to which such Stock Options remain exercisable. The adjustment by the Committee shall
be final, binding and conclusive. No fractional shares of Stock shall be

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issued under the Plan
resulting from any such adjustment, but the Committee in its discretion
may make a cash payment in lieu of fractional shares. For the avoidance of doubt, the number
of shares set forth in Section 3(a) takes into account the reverse stock split set forth in the
Company’s Amended and Restated Certificate of Incorporation,
filed on October 15, 2009.

     The Committee may also adjust the number of shares subject to outstanding Awards and the
exercise price and the terms of outstanding Awards to take into consideration material changes in
accounting practices or principles, extraordinary dividends, acquisitions or dispositions of stock
or property or any other event if it is determined by the Committee that such adjustment is
appropriate to avoid distortion in the operation of the Plan, provided that no such adjustment
shall be made in the case of an Incentive Stock Option, without the consent of the grantee, if it
would constitute a modification, extension or renewal of the Option within the meaning of Section
424(h) of the Code.

     (c) Substitute Awards. The Committee may grant Awards under the Plan in substitution
for stock and stock based awards held by employees, directors or other key persons of another
corporation in connection with a merger or consolidation of the employing corporation with the
Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of
the employing corporation. The Committee may direct that the substitute awards be granted on such
terms and conditions as the Committee considers appropriate in the circumstances. Any substitute
Awards granted under the Plan shall not count against the share limitation set forth in Section
3(a).

SECTION 4. TREATMENT UPON SALE EVENT OR OTHER EXTRAORDINARY TRANSACTION

     (a) Options.

          (i) In the case of and subject to the consummation of a Sale Event, the Plan and all Options
issued hereunder shall terminate upon the effective time of any such Sale Event unless provision is
made in connection with the Sale Event in the sole discretion of the parties thereto for the
assumption or continuation of Options theretofore granted by the successor entity, or the
substitution of such Options with new Options of the successor entity or parent thereof, with
appropriate adjustment as to the number and kind of shares and, if appropriate, the per share
exercise prices, as such parties shall agree (after taking into account any acceleration
hereunder).

          (ii) In the event of the termination of the Plan and all Options issued hereunder, each Holder
of Options shall be permitted, within a specified period of time prior to the consummation of the
Sale Event as determined by the Committee, to exercise all such Options which are then exercisable
or will become exercisable as of the effective time of the Sale Event; provided, however, that the
exercise of Options not exercisable prior to the Sale Event shall be subject to the consummation of
the Sale Event.

          (iii) Notwithstanding anything to the contrary in Section 4(a)(i), in the event of a Sale
Event pursuant to which holders of the Stock of the Company will receive upon consummation thereof
a cash payment for each share surrendered in the Sale Event, the Company shall have the right, but
not the obligation, to make or provide for a cash payment to

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the grantees holding vested Options in
exchange for the cancellation thereof, in an amount equal
to the difference between (A) the value as determined by the Committee of the consideration
payable per share of Stock pursuant to the Sale Event (the “Sale Price”) times the number of shares
of Stock subject to outstanding vested Options (to the extent then exercisable at prices not in
excess of the Sale Price) and (B) the aggregate exercise price of all such outstanding vested
Options.

     (b) Option Shares and Restricted Stock Awards. Unless otherwise provided in an Award
agreement, in the case of and subject to the consummation of a Sale Event, Option Shares and shares
of Restricted Stock shall be subject to the repurchase right set forth in Section 9(c)(i) and
9(c)(ii), respectively.

     (c) Unrestricted Stock Awards. Unless otherwise provided in an Award agreement, any
shares of Unrestricted Stock shall be treated in a Sale Event the same as all other Shares then
outstanding.

SECTION 5. ELIGIBILITY

     Grantees under the Plan will be such full or part-time officers and other employees, directors
and key persons (including consultants and prospective employees) of the Company and its
Subsidiaries as are selected from time to time by the Committee in its sole discretion.

SECTION 6. STOCK OPTIONS

     (a) Nature of Stock Options. A Stock Option is an Award entitling the recipient to
acquire, at such exercise price as determined by the Committee, shares of Stock subject to such
restrictions and conditions as the Committee may determine at the time of grant. Conditions may be
based on continuing employment (or other service relationship) and/or achievement of
pre-established performance goals and objectives. The grant of a Stock Option is contingent on the
grantee executing the Stock Option agreement. The terms and conditions of each such agreement shall
be determined by the Committee, and such terms and conditions may differ among individual Awards
and grantees.

     Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified
Stock Options. Incentive Stock Options may be granted only to employees of the Company or any
Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code. To
the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a
Non-Qualified Stock Option.

     No Incentive Stock Option shall be granted under the Plan after the date which is ten (10)
years from the date the Plan is approved by Board of Directors.

     (b) Grants of Stock Options. The Committee in its discretion may grant Stock Options
to eligible directors, officers, employees and key persons of the Company or any Subsidiary. Stock
Options granted under the Plan shall be subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the
Committee shall deem desirable. If the Committee so determines, Stock

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Options may be granted in lieu of cash compensation at the optionee’s election, subject to
such terms and conditions as the Committee may establish.

          (i) Exercise Price. The exercise price per share for the Stock covered by a Stock
Option granted under the Plan shall be determined by the Committee at the time of grant but shall
not be less than 100 percent of the Fair Market Value on the date of grant. If an employee owns or
is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10
percent of the combined voting power of all classes of stock of the Company or any parent or
subsidiary corporation and an Incentive Stock Option is granted to such employee, the option price
of an Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the
grant date.

          (ii) Option Term. The term of each Stock Option shall be fixed by the Committee, but
no Stock Option shall be exercisable more than 10 years after the date the Stock Option is granted.
If an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of
the Code) more than 10 percent of the combined voting power of all classes of stock of the Company
or any parent or subsidiary corporation and an Incentive Stock Option is granted to such employee,
the term of such Stock Option shall be no more than five years from the date of grant.

          (iii) Exercisability; Rights of a Stockholder. Stock Options shall become exercisable
at such time or times, whether or not in installments, as shall be determined by the Committee at
or after the grant date. The Committee may at any time accelerate the exercisability of all or any
portion of any Stock Option. An optionee shall have the rights of a stockholder only as to shares
acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. An optionee
shall not be deemed to have acquired any such shares unless and until a Stock Option shall have
been exercised pursuant to the terms hereof, the Company shall have issued and delivered the shares
to the optionee, and the optionee’s name shall have been entered on the books of the Company as a
stockholder.

          (iv) Method of Exercise. Stock Options may be exercised in whole or in part, by giving written
notice of exercise to the Company, specifying the number of shares to be purchased. Payment of the
purchase price may be made by one or more of the following methods or as otherwise provided by the
Committee:

          (A) In cash, by certified or bank check or other instrument acceptable to the Committee
in U.S. funds payable to the order of the Company in an amount equal to the purchase price
of such Option Shares;

          (B) By the optionee delivering to the Company a promissory note if the Board has
expressly authorized the loan of funds to the optionee for the purpose of enabling or
assisting the optionee to effect the exercise of his or her Stock Option; provided that at
least so much of the exercise price as represents the par value of the Stock shall be paid
other than with a promissory note if otherwise required by state law; or

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          (C) If permitted by the Committee, through the delivery (or attestation to the
ownership) of shares of Stock that have been beneficially owned by the optionee for at least
six months and are not then subject to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date.

     Payment instruments will be received subject to collection. No certificates for shares of
Stock so purchased will be issued to optionee until the Company has completed all steps required by
law to be taken in connection with the issuance and sale of the shares, including, without
limitation, (i) receipt of a representation from the optionee at the time of exercise of the Option
that the optionee is purchasing the shares for the optionee’s own account and not with a view to
any sale or distribution thereof, (ii) the legending of any certificate representing the shares to
evidence the foregoing representations and restrictions, and (iii) obtaining from optionee payment
or provision for all withholding taxes due as a result of the exercise of the Option. The delivery
of certificates representing the shares of Stock to be purchased pursuant to the exercise of a
Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead
in accordance with the provisions of the Stock Option) by the Company of the full purchase price
for such shares and the fulfillment of any other requirements contained in the Option Award
agreement or applicable provisions of laws. In the event an optionee chooses to pay the purchase
price by previously-owned shares of Stock through the attestation method, the number of shares of
Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the number
of shares attested to.

     (c) Annual Limit on Incentive Stock Options. To the extent required for “incentive
stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined
as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options
granted under this Plan and any other plan of the Company or its parent and subsidiary corporations
become exercisable for the first time by an optionee during any calendar year shall not exceed
$100,000. To the extent that any Stock Option exceeds this limit, it shall constitute a
Non-Qualified Stock Option.

SECTION 7. RESTRICTED STOCK AWARDS

     (a) (a) Nature of Restricted Stock Awards. A Restricted Stock Award is an Award pursuant to
which the Company may, in its sole discretion, grant or sell, at such purchase price as determined
by the Committee, in its sole discretion, shares of Stock subject to such restrictions and
conditions as the Committee may determine at the time of grant, which purchase price shall be
payable in cash or other form of consideration acceptable to the Committee. Conditions may be based
on continuing employment (or other service relationship) and/or achievement of pre-established
performance goals and objectives. The grant of a Restricted Stock Award is contingent on the
grantee executing the Restricted Stock Award agreement. The terms and conditions of each such
agreement shall be determined by the Committee, and such terms and conditions may differ among
individual Awards and grantees.

     (b) Rights as a Stockholder. Upon execution of a written instrument setting forth the
Restricted Stock Award and payment of any applicable purchase price, a grantee shall have the

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rights of a stockholder with respect to the voting of the Restricted Stock, subject to such
conditions contained in the written instrument evidencing the Restricted Stock Award.

     (c) Vesting of Restricted Stock. The Committee at the time of grant shall specify the
date or dates and/or the attainment of pre-established performance goals, objectives and other
conditions on which Restricted Stock shall become vested, subject to such further rights of the
Company or its assigns as may be specified in the instrument evidencing the Restricted Stock Award.

     (d) Record Owner; Dividends. The Holder of Restricted Stock shall be considered the
record owners of and shall be entitled to vote the Shares of Restricted Stock if and to the extent
such Shares are entitled to voting rights. The Holder shall be entitled to receive all dividends
and any other distributions declared on the Shares; provided, however, that the Company is under no
duty to declare any such dividends or to make any such distribution. The Restricted Stock Award
agreement may require or permit the immediate payment, waiver, deferral or investment of dividends
paid on the Restricted Stock.

SECTION 8. UNRESTRICTED STOCK AWARDS

     (a) Grant or Sale of Unrestricted Stock. The Committee may, in its sole discretion,
grant (or sell at par value or such higher purchase price determined by the Committee) an
Unrestricted Stock Award to any grantee, pursuant to which such grantee may receive shares of Stock
free of any vesting restrictions under the Plan. Unrestricted Stock Awards may be granted or sold
as described in the preceding sentence in respect of past services or other valid consideration, or
in lieu of any cash compensation due to such individual.

     (b) Elections to Receive Unrestricted Stock In Lieu of Compensation. Upon the request
of a grantee and with the consent of the Committee, each such grantee may, pursuant to an advance
written election delivered to the Company no later than the date specified by the Committee,
receive a portion of the cash compensation otherwise due to such grantee in the form of shares of
Unrestricted Stock either currently or on a deferred basis.

SECTION 9. TRANSFER RESTRICTIONS; COMPANY RIGHT OF FIRST REFUSAL; COMPANY REPURCHASE RIGHTS

     (a) Restrictions on Transfer.

          (i) Options. No Stock Option shall be transferable by the optionee otherwise than by
will or by the laws of descent and distribution and all Stock Options shall be exercisable, during
the optionee’s lifetime, only by the optionee, or by the optionee’s legal representative or
guardian in the event of the optionee’s incapacity. The Optionee may elect to designate a
beneficiary by providing written notice of the name of such beneficiary to the Company, and may
revoke or change such designation at any time by filing written notice of revocation or change with
the Company, and any such beneficiary may exercise the Optionee’s Stock Option in the event of the
Optionee’s death to the extent provided herein. If the Optionee does not designate a beneficiary,
or if the designated beneficiary predeceases the Optionee, the legal

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representative of the Optionee may exercise this Stock Option in the event of the Optionee’s
death to the extent provided herein. Notwithstanding the foregoing, the Committee, in its sole
discretion, may provide in the Award agreement regarding a given Option that the optionee may
transfer, without consideration for the transfer, his or her Non-Qualified Stock Options to members
of his or her immediate family, to trusts for the benefit of such family members, or to
partnerships in which such family members are the only partners, provided that the transferee
agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and
the applicable Option.

          (ii) Issued Shares. No Issued Shares shall be sold, assigned, transferred, pledged,
hypothecated, given away or in any other manner disposed of or encumbered, whether voluntarily or
by operation of law, unless (i) such transfer is in compliance with the terms of the applicable
Award, all applicable securities laws (including, without limitation, the Act), and with the terms
and conditions of this Section 9, (ii) such transfer does not cause the Company to become subject
to the reporting requirements of the Exchange Act, and (iii) the transferee consents in writing to
be bound by the provisions of the Plan, including this Section 9. In connection with any proposed
transfer, the Committee may require the transferor to provide at the transferor’s own expense an
opinion of counsel to the transferor, satisfactory to the Committee, that such transfer is in
compliance with all foreign, federal and state securities laws (including, without limitation, the
Securities Act). Any attempted disposition of Issued Shares not in accordance with the terms and
conditions of this Section 9 shall be null and void, and the Company shall not reflect on its
records any change in record ownership of any Issued Shares as a result of any such disposition,
shall otherwise refuse to recognize any such disposition and shall not in any way give effect to
any such disposition of Issued Shares. Subject to the foregoing general provisions, and unless
otherwise provided in the agreement with respect to a particular Award, Issued Shares may be
transferred pursuant to the following specific terms and conditions (provided that with respect to
any transfer of Restricted Stock, all vesting and forfeiture provisions shall continue to apply
only with respect to the original recipient):

          (A) Transfers to Permitted Transferees. The Holder may sell, assign, transfer
or give away any or all of the Issued Shares to Permitted Transferees; provided, however,
that following such sale, assignment, or other transfer, such Issued Shares shall continue
to be subject to the terms of this Plan (including this Section 9) and such Permitted
Transferee(s) shall, as a condition to any such transfer, deliver a written acknowledgment
to that effect to the Company.

          (B) Transfers Upon Death. Upon the death of the Holder, any Issued Shares then
held by the Holder at the time of such death and any Issued Shares acquired thereafter by
the Holder’s legal representative shall be subject to the provisions of this Plan, and the
Holder’s estate, executors, administrators, personal representatives, heirs, legatees and
distributees shall be obligated to convey such Issued Shares to the Company or its assigns
under the terms contemplated hereby.

     (b) Right of First Refusal. In the event that a Holder desires at any time to sell or
otherwise transfer all or any part of such Holder’s Issued Shares, the Holder first shall give
written notice to the Company of the Holder’s intention to make such transfer. Such notice shall
state the number of Issued Shares which the Holder proposes to sell (the “Offered Shares”), the

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price and the terms at which the proposed sale is to be made and the name and address of the
proposed transferee. At any time within 30 days after the receipt of such notice by the Company,
the Company or its assigns may elect to purchase all or any portion of the Offered Shares at the
price and on the terms offered by the proposed transferee and specified in the notice. The Company
or its assigns shall exercise this right by mailing or delivering written notice to the Holder
within the foregoing 30-day period. If the Company or its assigns elect to exercise its purchase
rights under this Section 9(b), the closing for such purchase shall, in any event, take place
within 45 days after the receipt by the Company of the initial notice from the Holder. In the event
that the Company or its assigns do not elect to exercise such purchase right, or in the event that
the Company or its assigns do not pay the full purchase price within such 45-day period, the Holder
may, within 60 days thereafter, sell the Offered Shares to the proposed transferee and at the same
price and on the same terms as specified in the Holder’s notice. Any Shares purchased by such
proposed transferee shall no longer be subject to the terms of the Plan. Any Shares not sold to the
proposed transferee shall remain subject to the Plan.

     (c) Company’s Right of Repurchase.

          (i) Right of Repurchase for Option Shares. The Company or its assigns shall have the
right and option upon a Repurchase Event to repurchase from a Holder of Option Shares some or all
(as determined by the Company) of the Option Shares held or subsequently acquired upon exercise of
a Stock Option by such Holder at the price per share specified below. Such repurchase right may be
exercised by the Company within the later of (A) six months following the date of such Repurchase
Event or (B) seven months after the acquisition of such Option Shares upon exercise of a Stock
Option (the “Option Shares Repurchase Period”). The “Option Shares Repurchase Price” shall be equal
to the Fair Market Value of the Option Shares, determined as of the date the Committee elects to
exercise its repurchase rights in connection with a Repurchase Event.

          (ii) Right of Repurchase With Respect to Restricted Stock. Unless otherwise set forth
in the agreement entered into by the recipient and the Company in connection with a Restricted
Stock Award, the Company or its assigns shall have the right and option upon a Repurchase Event to
repurchase from a Holder of Issued Shares received pursuant to a Restricted Stock Award some or all
(as determined by the Company) of such Issued Shares at the price per share specified below. Such
repurchase right may be exercised by the Company within six months following the date of such
Repurchase Event (the “Non-Option Shares Repurchase Period”). The “Non-Option Shares Repurchase
Price” shall be (i) in the case of Issued Shares which are vested as of the date of the Repurchase
Event, the Fair Market Value of such Issued Shares as of the date the Committee elects to exercise
its repurchase rights in connection with a Repurchase Event and (ii) in the case of Issued Shares
which have not vested as of the date of the Repurchase Event, subject to adjustment as provided in
Section 3(b), the original per share purchase price paid by the recipient.

          (iii) Procedure. Any repurchase right of the Company shall be exercised by the Company
or its assigns by giving the Holder written notice on or before the last day of the Option Shares
Repurchase Period or Non-Option Shares Repurchase Period, as applicable, of its intention to
exercise such repurchase right. Upon such notification, the Holder shall promptly surrender to the
Company, free and clear of any liens or encumbrances, any certificates

- 12 -

 

representing the Shares being purchased, together with a duly executed stock power for the
transfer of such Shares to the Company or the Company’s assignee or assignees. Upon the Company’s
or its assignee’s receipt of the certificates from the Holder, the Company or its assignee or
assignees shall deliver to him, her or them a check for the Option Shares Repurchase Price or the
Non-Option Shares Repurchase Price, as applicable; provided, however, that the Company may pay the
Option Shares Repurchase Price or Non-Option Shares Repurchase Price, as applicable, by offsetting
and canceling any indebtedness then owed by the Holder to the Company.

     (d) Drag Along Right. In the event the holders of a majority of the Company’s equity
securities then outstanding (the “Majority Shareholders”) determine to sell or otherwise dispose of
all or substantially all of the assets of the Company or all or fifty percent (50%) or more of the
capital stock of the Company, in each case in a transaction constituting a change in control of the
Company, to any non-Affiliate(s) of the Company or any of the Majority Shareholders, or to cause
the Company to merge with or into or consolidate with any non-Affiliate(s) of the Company or any of
the Majority Shareholders (in each case, the “Buyer”) in a bona fide negotiated transaction (a
“Sale”), a Holder of Issued Shares, including any Permitted Transferees, shall be obligated to and
shall upon the written request of the Majority Shareholders: (a) sell, transfer and deliver, or
cause to be sold, transferred and delivered, to the Buyer, his or her Issued Shares (including for
this purpose all of such Holder’s or his or her Permitted Transferee’s Issued Shares that presently
or as a result of any such transaction may be acquired upon the exercise of an Option (following
the payment of the exercise price therefor)) on substantially the same terms applicable to the
Majority Shareholders (with appropriate adjustments to reflect the conversion of convertible
securities, the redemption of redeemable securities and the exercise of exercisable securities as
well as the relative preferences and priorities of preferred stock); and (b) execute and deliver
such instruments of conveyance and transfer and take such other action, including voting such
Issued Shares in favor of any Sale proposed by the Majority Shareholders and executing any purchase
agreements, merger agreements, indemnity agreements, escrow agreements or related documents as the
Majority Shareholders or the Buyer may reasonably require in order to carry out the terms and
provisions of this Section 9(d).

     (e) Escrow Arrangement.

          (i) Escrow. In order to carry out the provisions of Sections 9(b), (c), and (d) of
this Agreement more effectively, the Company shall hold any Issued Shares in escrow together with
separate stock powers executed by the Holder in blank for transfer, and any Permitted Transferee
shall, as an additional condition to any transfer of Issued Shares, execute a like stock power as
to such Issued Shares. The Company shall not dispose of the Issued Shares except as otherwise
provided in this Agreement. In the event of any repurchase by the Company (or any of its assigns),
the Company is hereby authorized by the Holder and any Permitted Transferee, as the Holder’s and
each such Permitted Transferee’s attorney-in-fact, to date and complete the stock powers necessary
for the transfer of the Issued Shares being purchased and to transfer such Issued Shares in
accordance with the terms hereof. At such time as any Issued Shares are no longer subject to the
Company’s repurchase, first refusal and drag along rights, the Company shall, at the written
request of the Holder, deliver to the Holder (or the relevant

- 13 -

 

Permitted Transferee) a certificate representing such Issued Shares with the balance of the
Issued Shares to be held in escrow pursuant to this Section 9(e).

          (ii) Remedy. Without limitation of any other provision of this Agreement or other
rights, in the event that a Holder, any Permitted Transferees or any other Person is required to
sell a Holder’s Issued Shares pursuant to the provisions of Sections 9(b), (c), or (d) hereof and
in the further event that he or she refuses or for any reason fails to deliver to the Company or
its designated purchaser of such Issued Shares the certificate or certificates evidencing such
Issued Shares together with a related stock power, the Company or such designated purchaser may
deposit the applicable purchase price for such Issued Shares with a bank designated by the Company,
or with the Company’s independent public accounting firm, as agent or trustee, or in escrow, for
such Holder, any Permitted Transferees or other Person, to be held by such bank or accounting firm
for the benefit of and for delivery to him, her, them or it, and/or, in its discretion, pay such
purchase price by offsetting any indebtedness then owed by such Holder as provided above. Upon any
such deposit and/or offset by the Company or its designated purchaser of such amount and upon
notice to the Person who was required to sell the Issued Shares to be sold pursuant to the
provisions of Sections 9(b), (c), or (d), such Issued Shares shall at such time be deemed to have
been sold, assigned, transferred and conveyed to such purchaser, such Holder shall have no further
rights thereto (other than the right to withdraw the payment thereof held in escrow, if
applicable), and the Company shall record such transfer in its stock transfer book or in any
appropriate manner.

     (f) Lockup Provision. Upon request of the Company or the underwriter(s) managing any
underwritten offering of the Company’s securities under the Securities Act, the Holder shall agree
in writing that the Holder will not sell, make any short sale of, loan, grant any option for the
purchase of, or otherwise dispose of any Issued Shares, without the prior written consent of the
Company or such managing underwriter(s) of the offering, as the case may be, for such period of
time after the execution of an underwriting agreement in connection with such offering that all of
the Company’s then directors and executive officers agree to be similarly bound. The foregoing
restriction shall be in addition to and not in lieu of any other similar obligations between the
Holder and the Company. The Company may impose stop-transfer instructions with respect to the
shares (or securities) subject to the foregoing restriction until the end of such period.

     (g) Adjustments for Changes in Capital Structure. If, as a result of any
reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar change in the Common Stock, the outstanding shares of Common Stock are
increased or decreased or are exchanged for a different number or kind of shares of the Company’s
stock, the restrictions contained in this Section 9 shall apply with equal force to additional
and/or substitute securities, if any, received by Holder in exchange for, or by virtue of his or
her ownership of, Issued Shares.

     (h) Termination. The terms and provisions of Section 9(b), Section 9(c) and Section
9(d) shall terminate upon the closing of the Company’s initial public offering or upon consummation
of any Sale Event, in either case as a result of which shares of the Company (or a successor
entity) of the same class as the Issued Shares are registered under Section 12 of the Exchange Act
and publicly traded on NASDAQ/NMS or any national security exchange.

- 14 -

 

SECTION 10. TAX WITHHOLDING

     (a) Payment by Grantee. Each grantee shall, no later than the date as of which the
value of an Award or of any Stock or other amounts received thereunder first becomes includable in
the gross income of the grantee for Federal income tax purposes, pay to the Company, or make
arrangements satisfactory to the Committee regarding payment of, any Federal, state, or local taxes
of any kind required by law to be withheld with respect to such income. The Company and its
Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from
any payment of any kind otherwise due to the grantee. The Company’s obligation to deliver stock
certificates to any grantee is subject to and conditioned on any such tax obligations being
satisfied by the grantee.

     (b) Payment in Stock. Subject to approval by the Committee, a grantee may elect to
have the minimum required tax withholding obligation satisfied, in whole or in part, by (i)
authorizing the Company to withhold from shares of Stock to be issued pursuant to any Award a
number of shares with an aggregate Fair Market Value (as of the date the withholding is effected)
that would satisfy the withholding amount due, or (ii) transferring to the Company shares of Stock
owned by the grantee with an aggregate Fair Market Value (as of the date the withholding is
effected) that would satisfy the minimum withholding amount due.

SECTION 11. AMENDMENTS AND TERMINATION

     The Board may, at any time, amend or discontinue the Plan and the Committee may, at any time,
amend or cancel any outstanding Award (or provide substitute Awards at the same or a reduced
exercise or purchase price or with no exercise or purchase price) in a manner not inconsistent with
the terms of the Plan, provided that such price, if any, must satisfy the requirements which would
apply to the substitute or amended Award if it were then initially granted under this Plan for the
purpose of satisfying changes in law or for any other lawful purpose, but no such action shall
adversely affect rights under any outstanding Award without the holder’s consent. In addition, to
the extent determined by the Committee to be required by the Code to ensure that Incentive Stock
Options granted under the Plan are qualified under Section 422 of the Code, Plan amendments shall
be subject to approval by the Company’s stockholders who are entitled to vote at a meeting of
stockholders. Nothing in this Section 11 shall limit the Committee’s authority to take any action
permitted pursuant to Section 3(c).

SECTION 12. STATUS OF PLAN

     With respect to the portion of any Award that has not been exercised and any payments in cash,
Stock or other consideration not received by a grantee, a grantee shall have no rights greater than
those of a general creditor of the Company unless the Committee shall otherwise expressly determine
in connection with any Award or Awards. In its sole discretion, the Committee may authorize the
creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make
payments with respect to Awards hereunder, provided that the existence of such trusts or other
arrangements is consistent with the foregoing sentence.

- 15 -

 

SECTION 13. GENERAL PROVISIONS

     (a) No Distribution; Compliance with Legal Requirements. The Committee may require
each person acquiring Stock pursuant to an Award to represent to and agree with the Company in
writing that such person is acquiring the shares without a view to distribution thereof. No shares
of Stock shall be issued pursuant to an Award until all applicable securities law and other legal
requirements have been satisfied. The Committee may require the placing of restrictive legends on
certificates for Stock and Awards as it deems appropriate.

     (b) Delivery of Stock Certificates. Stock certificates to grantees under this Plan
shall be deemed delivered for all purposes when the Company or a stock transfer agent of the
Company shall have mailed such certificates in the United States mail, addressed to the grantee, at
the grantee’s last known address on file with the Company.

     (c) Other Compensation Arrangements; No Employment Rights. Nothing contained in this
Plan shall prevent the Board from adopting other or additional compensation arrangements, including
trusts, and such arrangements may be either generally applicable or applicable only in specific
cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right
to continued employment with the Company or any Subsidiary.

     (d) Loans to Award Recipients. The Company shall have the authority to make loans to
recipients of Awards hereunder (including to facilitate the purchase of shares) and shall further
have the authority to issue shares for promissory notes hereunder.

     (e) Designation of Beneficiary. Each grantee to whom an Award has been made under the
Plan may designate a beneficiary or beneficiaries to exercise any Award or receive any payment
under any Award payable on or after the grantee’s death. Any such designation shall be on a form
provided for that purpose by the Committee and shall not be effective until received by the
Committee. If no beneficiary has been designated by a deceased grantee, or if the designated
beneficiaries have predeceased the grantee, the beneficiary shall be the grantee’s estate.

     (f) Legend. Any certificate(s) representing the Issued Shares shall carry
substantially the following legend:

The transferability of this certificate and the shares of
stock represented hereby are subject to the restrictions,
terms and conditions (including repurchase and
restrictions against transfers) contained in the Glori Oil
Limited 2006 Stock Option and Grant Plan and any agreement
entered into thereunder by and between the company and the
holder of this certificate (a copy of which is available
at the offices of the company for examination).

     (g) Voting Agreement; Right of First Refusal and Co-Sale Agreement. In the event that
any Person receives Common Stock through the grant of a Stock Award or the exercise of a Stock
Option, following which such Person shall hold Shares constituting one percent (1%) or more of the
Company’s then outstanding capital stock (treating for this purpose all shares of

- 16 -

 

Common Stock issuable upon exercise of or conversion of outstanding options, warrants or
convertible securities, as if exercised and/or converted or exchanged), then, the Company shall
cause such Person, as a condition precedent to entering into such agreement, to become a party to
that certain Voting Agreement effective as of October 13, 2006, as the same may be amended from
time to time, by executing an Adoption Agreement in the form attached thereto as Exhibit A,
agreeing to be bound by and subject to the terms of such agreement as a Stockholder and thereafter
such person shall be deemed a Stockholder for all purposes under such agreement.

SECTION 14. EFFECTIVE DATE OF PLAN

     This Plan shall become effective upon approval by the stockholders in accordance with
applicable law. Subject to such approval by the stockholders and to the requirement that no Stock
may be issued hereunder prior to such approval, Stock Options and other Awards may be granted
hereunder on and after adoption of this Plan by the Board.

SECTION 15. GOVERNING LAW

     This Plan and all Awards and actions taken thereunder shall be governed by, and construed in
accordance with, the laws of the State of Delaware, applied without regard to conflict of law
principles.

SECTION 16. DISPUTE RESOLUTION

     (a) Except as provided below, any dispute arising out of or relating to this Plan or any Award
made hereunder, or any agreement executed in connection herewith, or the breach, termination or
validity of this Plan, any such Award or any such agreement, shall be finally settled by binding
arbitration conducted expeditiously in accordance with the J.A.M.S./Endispute Comprehensive
Arbitration Rules and Procedures (the “J.A.M.S. Rules”). The arbitration shall be governed by the
United States Arbitration Act, 9 U.S.C. Sections 1-16, and judgment upon the award rendered by the
arbitrators may be entered by any court having jurisdiction thereof. The place of arbitration shall
be Boston, Massachusetts.

     (b) The arbitration shall commence within 60 days of the date on which a written demand for
arbitration is filed by any party hereto. In connection with the arbitration proceeding, the
arbitrator shall have the power to order the production of documents by each party and any
third-party witnesses. In addition, each party may take up to three (3) depositions as of right,
and the arbitrator may in his or her discretion allow additional depositions upon good cause shown
by the moving party. However, the arbitrator shall not have the power to order the answering of
interrogatories or the response to requests for admission. In connection with any arbitration, each
party to the arbitration shall provide to the other, no later than seven (7) business days before
the date of the arbitration, the identity of all persons that may testify at the arbitration and a
copy of all documents that may be introduced at the arbitration or considered or used by a party’s
witness or expert. The arbitrator’s decision and award shall be made and delivered within six (6)
months of the selection of the arbitrator. The arbitrator’s decision shall set forth a reasoned
basis for any award of damages or finding of liability. The arbitrator shall not have power to
award damages

- 17 -

 

in excess of actual compensatory damages and shall not multiply actual damages or award
punitive damages, and each party hereby irrevocably waives any claim to such damages.

     (c) The Company, each recipient of an Award hereunder, each party to an agreement governed
hereby and any other holder of Stock issued under this Plan (each, a “Party”) covenants and agrees
that such party will participate in the arbitration in good faith. This Section 14 applies equally
to requests for temporary, preliminary or permanent injunctive relief, except that in the case of
temporary or preliminary injunctive relief any party may proceed in court without prior arbitration
for the limited purpose of avoiding immediate and irreparable harm.

     (d) Each Party (i) hereby irrevocably submits to the jurisdiction of any United States
District Court of competent jurisdiction for the purpose of enforcing the award or decision in any
such proceeding, (ii) hereby waives, and agrees not to assert, by way of motion, as a defense, or
otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to
the jurisdiction of the above-named courts, that its property is exempt or immune from attachment
or execution (except as protected by applicable law), that the suit, action or proceeding is
brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or
that this Agreement or the subject matter hereof may not be enforced in or by such court, and (iii)
hereby waives and agrees not to seek any review by any court of any other jurisdiction which may be
called upon to grant an enforcement of the judgment of any such court. Each Party hereby consents
to service of process by registered mail at the address to which notices are to be given. Each
Party agrees that its, his or her submission to jurisdiction and its, his or her consent to service
of process by mail is made for the express benefit of each other Party. Final judgment against any
Party in any such action, suit or proceeding may be enforced in other jurisdictions by suit, action
or proceeding on the judgment, or in any other manner provided by or pursuant to the laws of such
other jurisdiction.

- 18 -

 

AMENDMENT TO

GLORI OIL LIMITED

2006 STOCK OPTION AND GRANT PLAN

     This Amendment (this “Amendment”) to the Glori Oil Limited 2006 Stock Option and Grant Plan
(the “Plan”) is made effective as of December 6, 2010.

RECITALS

     WHEREAS, the Board of Directors (the “Board”) of Glori Oil Limited, a Delaware corporation
(the “Company”) approved and adopted resolutions authorizing the chief executive officer of the
Company, with the approval and authorization of the Compensation Committee of the Board, to amend
the Plan.

     NOW, THEREFORE, the following is hereby executed:

     1. Amendment. The first sentence of Section 3(a) of the Plan is deleted and replaced with the
following:

The maximum number of Shares reserved and available for issuance under the
Plan shall be 5,453,740 Shares, subject to adjustment as provided in Section
3(b).

     2. Remainder of the Agreement. Except as amended in this Amendment, the Plan remains in full
force and effect and the terms thereof are incorporated herein by reference.

     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first set
forth above.

	 	 	 	 	 
	 	 	 
	 	                           /s/ Stuart Page
 	 
	 	Stuart Page, Chief Executive Officer 	 
	 	 	 
	 

- 19 -exv10w3

Exhibit 10.3

Incentive Stock Option Agreement

under the Glori Oil Limited

2006 Stock Option and Grant Plan

	 	 	 

	Name of Optionee:

	 	NAME (the “Optionee”)
	 
	 	 
	No. of Underlying Shares:

	 	XXXX Shares of Common Stock
	 
	 	 
	Grant Date:

	 	DATE (the “Grant Date”)
	 
	 	 
	Expiration Date:

	 	DATE + 10 Years (the “Expiration Date”)
	 
	 	 
	Option Exercise Price/Share:

	 	$0.xxx (the “Option Exercise Price”)

Pursuant to the Glori Oil Limited 2006 Stock Option and Grant Plan (the “Plan”), Glori Energy Inc.
(f/k/a Glori Oil Limited), a Delaware corporation (together with all successors thereto, the
“Company”), hereby grants to the Optionee, who is an employee of the Company or any of its
Subsidiaries, an Option to purchase, on or prior to the Expiration Date (or such earlier date as
provided in Section 3 below), all or any part of the number of shares of Common Stock of the
Company indicated above (the “Underlying Shares,” with such shares once issued being referred to
herein and in the Plan as “Option Shares”) at the Option Exercise Price per share indicated above.

Notwithstanding anything in this Incentive Stock Option Agreement (the “Agreement”) to the
contrary, this Stock Option and any Option Shares shall be subject to, and governed by, all the
terms and conditions of the Plan, including, without limitation, Section 9 thereof concerning
certain restrictions on transfer of Option Shares and related matters. To the extent there is any
inconsistency between the terms of the Plan and of this Agreement, the terms of the Plan shall
control.

All capitalized terms used in this Agreement and not otherwise defined shall have the respective
meanings given such terms in the Plan.

     1. Vesting and Exercisability.

          (a) No portion of this Stock Option may be exercised until such portion shall have vested
and become exercisable. Except as set forth in Section 1(b) below, and subject to the determination
of the Committee in its sole discretion to accelerate the vesting schedule hereunder, this Stock
Option shall be vested and exercisable with respect to the Underlying Shares in accordance with the
following schedule:

	 	 	 

	The date of this option grant, as first written above:

	 	No shares
	 
	 	 
	One calendar year from the Vesting Start Date (the “Anniversary Date”):

	 	25% of the Shares
	 
	 	 
	On the last day of each of the first 36 calendar months after the Anniversary Date:

	 	An additional 1/36 of the Shares

 

 

          (b) In the case of a Sale Event, this Stock Option shall be treated as provided in Section
4(a) of the Plan.

     2. Exercise of Stock Option. Prior to the Expiration Date (or such earlier date
provided in Section 3 below), the Optionee may exercise this Stock Option by delivering a Stock
Option exercise notice (an “Exercise Notice”) in the form of Appendix A hereto indicating
his or her election to purchase some or all of the Underlying Shares with respect to which this
Stock Option is exercisable at the time of such notice.

     3. Termination of Employment. Except as the Committee may otherwise expressly
provide, or as may otherwise be expressly provided in any employment agreement between the Company
and the Optionee, if the Optionee’s employment with the Company or a Subsidiary terminates, the
period within which the Optionee may exercise this Stock Option may be subject to earlier
termination as set forth below:

          (a) Termination of Employment Due to Death or Disability. If the Optionee’s employment
terminates by reason of such Optionee’s death or disability (as defined in Section 422(c) of the
Code), this Stock Option may be exercised, to the extent exercisable on the date of such
termination, by the Optionee or by the Optionee’s legal representative or legatee for a period of
twelve (12) months from the date of such termination or until the Expiration Date, if earlier.

          (b) Termination for Cause. If the Optionee’s employment is terminated by the Company for
Cause, all Options (unvested and vested) shall terminate immediately.

          (c) Other Termination. If the Optionee’s employment terminates for any reason other than
death or disability or Cause, this Stock Option may be exercised, to the extent exercisable on the
date of such termination, by the Optionee for a period of three (3) months from the date of
termination or until the Expiration Date, if earlier.

          (d) Treatment of Unvested Options on Termination of Employment. Any portion of this Stock
Option that is not exercisable on the date of termination of the Optionee’s employment with the
Company, for any reason, shall terminate immediately and be null and void and of no further force
and effect.

     4. Status of Stock Option. The Optionee understands that, while this Stock Option
is intended to qualify as an “incentive stock option” as defined in Section 422 of the Code to the
extent permitted under applicable law, the Company makes no representation or warranty that this
Stock Option will, in fact, so qualify. In order to obtain the benefits of an incentive stock
option under Section 422 of the Code, the Optionee understands that this Stock Option must be
exercised within three (3) months after termination of employment or within twelve (12) months
after termination of employment if such termination is due to death or disability; provided, that
in no event may this Stock Option be exercised after the Expiration Date. The Optionee further
understands that, to obtain such benefits, no sale or other disposition may be made of Option
Shares for which incentive stock option treatment is desired within the one-year period beginning
on the day after the day of the transfer of such Option Shares to him or her, nor within the
two-year period beginning on the day after the Grant Date of this Stock Option. If the Optionee
disposes (whether by sale, gift, transfer or otherwise) of any such Option Shares within either of
these periods (a “disqualifying disposition”), he or she will notify the Company within thirty (30)
days after such disposition. The Optionee also agrees to provide the Company with any information
concerning any such dispositions required by the Company for tax purposes. Further, to the extent
Underlying Shares and any other incentive stock options of the Optionee having an aggregate Fair
Market Value in excess of $100,000 (determined as of the Grant Date) vest in any year, such options
will not

2

 

qualify as incentive stock options. To the extent that any portion of the Stock Option does not
qualify as an incentive stock option, whether due to a disqualifying disposition or otherwise, it
shall be deemed a non-qualified stock option.

     5. Miscellaneous Provisions.

          (a) Change and Modifications. This Agreement may not be orally changed, modified or
terminated, nor shall any oral waiver of any of its terms be effective. This Agreement may be
changed, modified or terminated only by an agreement in writing signed by the Company and the
Optionee.

          (b) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of Delaware without regard to conflict of law principles.

          (c) Notices. All notices, requests, consents and other communications shall be in writing
and be deemed given when delivered personally, by telex or facsimile transmission or when received
if mailed by first class registered or certified mail, postage prepaid. Notices to the Company or
the Optionee shall be addressed as set forth underneath their signatures below, or to such other
address or addresses as may have been furnished by such party in writing to the other.

          (d) Counterparts. For the convenience of the parties and to facilitate execution, this
Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which shall constitute one and the same document.

[SIGNATURE PAGE FOLLOWS]

3

 

     The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by
the undersigned as of the date first above written.

	 	 	 	 	 
	 	GLORI ENERGY INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	Address:  4315 South Drive 
Houston, TX 77053 
	 

The undersigned hereby acknowledges receiving and reviewing a copy of the Plan, including, without
limitation, Section 9 thereof, and understands that the Stock Option granted hereby is subject
to the terms of the Plan and of this Agreement. This Agreement is hereby accepted, and the terms
and conditions thereof and of the Plan hereby agreed to, by the undersigned as of the date first
above written.

	 	 	 

	 

	 	OPTIONEE:
	 
	 	 
	 

	 	 
	 

	 	Name:
	 
	 	 
	 

	 	Address:

DESIGNATION OF BENEFICIARY:____________________________________

Beneficiary’s Address:

4

 

SPOUSE’S CONSENT

The undersigned hereby acknowledges receiving and reviewing a copy of the Plan, including, without
limitation, Section 9 thereof, and understands that the Stock Option granted hereby is subject to
the terms of the Plan and of this Agreement. This Agreement is hereby accepted, and the terms and
conditions hereof and of the Plan are hereby agreed to, by the undersigned as of the date first
above written.

	 	 	 

	 

	 	SPOUSE:
	 
	 	 
	 

	 	 
	 

	 	Name:
	 
	 	 
	 

	 	Address:

5

 

Appendix A

STOCK OPTION EXERCISE NOTICE

GLORI OIL LIMITED

Attention: Chief Financial Officer

     
                     
                     
                     
            

     
                     
                     
                     
            

          Pursuant to the terms of the stock option agreement between myself and Glori Oil Limited (the
“Company”) dated _______ (the “Agreement”), under the Company’s 2006 Stock Option and Grant Plan, I,
[Insert Name] ______, hereby [Circle One] partially/fully exercise such Stock Option by including
herein payment in the amount of $___ representing the purchase price for [Fill in number of
Underlying Shares] ___________ Option Shares. I have chosen the following form(s) of payment:

	 	o   1.	 	Cash
	 
	 	o   2.	 	Certified or bank check payable to Glori Oil Limited
	 
	 	o   3.	 	Other (as described in the Plan (please describe))
	 
	 	 	 	 

     In connection with my exercise of the Stock Option as set forth above, I hereby represent and
warrant to the Company as follows:

          (i) I am purchasing the Option Shares for my own account for investment only, and not for resale or
with a view to the distribution thereof.

          (ii) I have had such an opportunity as I have deemed adequate to obtain from the Company such
information as is necessary to permit me to evaluate the merits and risks of my investment in the
Company and have consulted with my own advisers with respect to my investment in the Company.

          (iii) I have sufficient experience in business, financial and investment matters to be able to
evaluate the risks involved in the purchase of the Option Shares and to make an informed investment
decision with respect to such purchase.

          (iv) I can afford a complete loss of the value of the Option Shares and am able to bear the
economic risk of holding such Option Shares for an indefinite period of time.

          (v) I understand that the Option Shares may not be registered under the Securities Act of 1933 (it
being understood that the Option Shares are being issued and sold in reliance on the exemption
provided in Rule 701 thereunder) or any applicable state securities or “blue sky” laws and may not
be sold or otherwise transferred or disposed of in the absence of an effective registration
statement under the Securities Act of 1933 and under any applicable state securities or “blue sky”
laws (or exemptions from the registration requirements thereof). I further acknowledge that
certificates representing Option Shares will bear restrictive legends reflecting the foregoing.

          (vi) I understand and agree that the Option Shares when issued will continue to be subject to the
Plan, including Section 9 thereof.

 

 

	 	 	 

	 

	 	Sincerely yours,
	 
	 	 
	 

	 	 
	 

	 	Name:
	 
	 	 
	 

	 	Address:

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