Document:

exv4w10

Exhibit 4.10

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR REGISTERED OR QUALIFIED FOR
SALE UNDER ANY STATE OR FOREIGN SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
OR HYPOTHECATED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SHARES IS EFFECTIVE UNDER THE ACT
AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS
UNDER APPLICABLE STATE AND FOREIGN LAW AND AN OPINION SATISFACTORY TO THE COMPANY TO SUCH EFFECT
HAS BEEN RENDERED BY COUNSEL.

WARRANT AGREEMENT

To Purchase Shares of Preferred Stock of

GLORI ENERGY INC.

Dated as of June 11, 2012 (the “Effective Date”)

     WHEREAS, Glori Energy Inc., a Delaware corporation (the “Company”), Glori California
Inc., a Delaware corporation, Glori Holdings Inc., a Delaware corporation and Glori Oil (Argentina)
Limited, a Delaware corporation have entered into a Loan and Security Agreement of even date
herewith (the “Loan Agreement”) with Hercules Technology Growth Capital, Inc., a Maryland
corporation (the “Warrantholder”);

     WHEREAS, the Company desires to grant to Warrantholder, in consideration for, among other
things, the financial accommodations provided for in the Loan Agreement, the right to purchase
shares of its Preferred Stock pursuant to this Warrant Agreement (this “Agreement”);

     NOW, THEREFORE, in consideration of the Warrantholder executing and delivering the Loan
Agreement and providing the financial accommodations contemplated therein, and in consideration of
the mutual covenants and agreements contained herein, the Company and Warrantholder agree as
follows:

          SECTION 1. GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK.

     For value received, the Company hereby grants to the Warrantholder, and the Warrantholder is
entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe for and
purchase, from the Company, the Designated Warrant Number (as defined below) of fully paid and
non-assessable shares of the Preferred Stock (as defined below) at the Exercise Price (as defined
below). The number and Exercise Price of such shares are subject to adjustment as provided in
Section 8. As used herein, the following terms shall have the following meanings:

	 	 	“Act” means the Securities Act of 1933, as amended.
	 
	 	 	“Affiliate” of a person means any other person that directly or indirectly, through
one or more intermediaries, controls, is controlled by, or is under common control with,
such person. The term “control” (including the terms “controlled by” and “under common
control with”) means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a person, whether through the
ownership

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		 	of voting securities, by contract or otherwise. The term “person” as used in this
Agreement means an individual, corporation, partnership, joint venture, limited liability
company, trust, association or other entity.
	 
	 	 	“Business Day” means any day, except a Saturday, Sunday or legal holiday, on which
banking institutions in Houston, Texas or Palo Alto, California are authorized or obligated
by law or executive order to close.
	 
	 	 	“Charter” means the Company’s Certificate of Incorporation or other constitutional
document, as may be amended, restated or amended and restated from time to time.
	 
	 	 	“Common Stock” means the Company’s common stock, $0.0001 par value per share.
	 
	 	 	“Designated Warrant Number” means the quotient of the Warrant Coverage divided by
the Exercise Price, which quotient, if not a whole number, shall be rounded down to the
nearest whole number.
	 
	 	 	“Excluded Issuances” means any issuance or sale by the Company after the Effective
Date of: (a) shares of Preferred Stock or Common Stock issued upon the exercise of this
Agreement; (b) shares of Preferred Stock, Common Stock or securities (directly or
indirectly) convertible into or exchangeable for Preferred Stock or Common Stock, including
warrants or other rights or options to subscribe for or purchase Common Stock or Preferred
Stock, issued (i) to persons in connection with a joint venture, strategic alliance or
other commercial relationship with such person (including persons that are customers,
suppliers and strategic partners of the Company) relating to the operation of the Company’s
business and not for the primary purpose of raising equity capital, (ii) in connection with
a transaction in which the Company, directly or indirectly, acquires another business or
its tangible or intangible assets, or (iii) to lenders as equity kickers in connection with
debt financings of the Company, in each case where such transactions have been approved by
the Board of Directors of the Company; (c) shares of Preferred Stock, Common Stock or
securities (directly or indirectly) convertible into or exchangeable for Preferred Stock or
Common Stock, including warrants or other rights or options to subscribe for or purchase
Common Stock or Preferred Stock issued to the lessor or vendor in any office lease or
equipment lease or similar equipment financing transaction in which the Company obtains the
use of such office space or equipment for its business; or (d) shares of Preferred Stock,
Common Stock or securities (directly or indirectly) convertible into or exchangeable for
Preferred Stock or Common Stock, including warrants or other rights or options to subscribe
for or purchase Common Stock or Preferred Stock, that is covered by Section 8 of this
Agreement.
	 
	 	 	“Exercise Price” means a purchase price of any of the following, as applicable: (a)
if the Warrant is exercised with respect to Series C Preferred Stock, the lower of (i)
$2.741 per share, or (ii) the Subsequent Round Securities Price Per Share (whether such
Subsequent Round is with respect to Series C Preferred Stock or another Subsequent Round,
at Warrantholder’s option), or (b) if the Warrant is exercised with respect to another
Subsequent Round, the Subsequent Round Securities Price Per Share.
	 
	 	 	“Initial Public Offering” means the initial underwritten public offering of the
Company’s Common Stock pursuant to a registration statement under the Act, which public
offering has been declared effective by the Securities and Exchange Commission
(“SEC”).
	 
	 	 	“Merger Event” means a merger or consolidation involving the Company in which the
Company is not the surviving entity, or in which the outstanding shares of the Company’s
capital stock are otherwise converted into or exchanged for shares of capital stock of
another entity.

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	 	 	“Preferred Stock” means, at the Warrantholder’s option, (a) the Series C Preferred
Stock of the Company, or (b) shares of any other series of preferred stock of the Company
issued in a Subsequent Round prior to the Initial Public Offering. In the case of each of
(a) and (b), upon and after the occurrence of an event which results in the automatic or
voluntary conversion, redemption or retirement of all (but not less than all) of the
outstanding shares of such Preferred Stock, including, without limitation, the consummation
of an Initial Public Offering of the Common Stock in which such a conversion occurs, into
 shares of Common Stock (any such event referred to herein as a “Conversion Event”)
then from and after the date upon which such outstanding shares are so converted, redeemed
or retired, “Preferred Stock” shall mean such Common Stock. If a Conversion Event occurs
with respect to a series of Preferred Stock, then in lieu of such shares of Preferred Stock
that the Warrantholder would have been entitled to purchase pursuant to this Agreement
prior to such Conversion Event, the Warrantholder shall thereafter be entitled to purchase
such number of shares of Common Stock that the Warrantholder would have been entitled to
had it exercised this Agreement with respect to such shares of Preferred Stock immediately
prior to such Conversion Event and then participated in the Conversion Event.
	 
	 	 	“Purchase Price” means, with respect to any exercise of this Agreement, an amount
equal to the Exercise Price as of the relevant time multiplied by the number of shares of
Preferred Stock requested to be exercised under this Agreement pursuant to such exercise.
	 
	 	 	“Subsequent Round” means the closing of any Company financing involving the sale of
Preferred Stock for cash which becomes effective after the Effective Date but before an
Initial Public Offering. Subsequent Round shall exclude the Excluded Issuances.
	 
	 	 	“Subsequent Round Securities Price Per Share” means the lowest price per share paid
by investors paying cash for Preferred Stock issued and sold by the Company in the
Subsequent Round.
	 
	 	 	“Warrant Coverage” means $400,000.

          SECTION 2. TERM OF THE AGREEMENT.

     Except as otherwise provided for herein, the term of this Agreement and the right to purchase
Preferred Stock as granted herein (the “Warrant”) shall commence on the Effective Date and
shall be exercisable for a period ending at 5:00 p.m., Houston, Texas time, on the tenth
anniversary of the Effective Date, or if such day is not a Business Day, on the next preceding
Business Day.

          SECTION 3. EXERCISE OF THE PURCHASE RIGHTS.

     (a) Exercise. The purchase rights set forth in this Agreement are exercisable by the
Warrantholder, for all or any part of the Warrant Coverage, at any time, or from time to time,
prior to the expiration of the term set forth in Section 2, by tendering to the Company at its then
principal executive offices this Agreement and a notice of exercise in the form attached hereto as
Exhibit I (the “Notice of Exercise”), duly completed and executed and payment in
full of the Purchase Price in accordance with the terms set forth below. Promptly upon receipt of
the Notice of Exercise and the payment of the Purchase Price in accordance with the terms set forth
below, and in no event later than five (5) Business Days thereafter, the Company shall issue to the
Warrantholder a certificate for the number of shares of Preferred Stock purchased and shall execute
the acknowledgment of exercise in the form attached hereto as Exhibit II (the

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“Acknowledgment of Exercise”) indicating the Warrant Coverage amount which remains
subject to future purchases, if any.

     The Purchase Price may be paid at the Warrantholder’s election either (i) by cash or check, or
(ii) by surrender of all or a portion of the Warrant for shares of Preferred Stock to be exercised
under this Agreement and, if applicable, an amended Agreement representing the remaining number of
shares purchasable hereunder, as determined below (“Net Issuance”). If the Warrantholder
elects the Net Issuance method, the Company will issue Preferred Stock in accordance with the
following formula:

	 	 	 	 	 	 	 

	 

	 	X =
	 	Y(A-B)
 

     A
	 	 

	 	 	 	 	 

	Where:

	 	X =
	 	the number of shares of Preferred Stock to be issued to
the Warrantholder.
	 
	 	 	 	 
	 

	 	 	 	                    Y = the number of shares of Preferred Stock
requested to be exercised under this Agreement.
	 
	 	 	 	 
	 

	 	 	 	                    A = the fair market value of one (1) share
of Preferred Stock at the time of issuance of such shares
of Preferred Stock.
	 
	 	 	 	 
	 

	 	B =
	 	the Exercise Price.

     For purposes of the above calculation, current fair market value of Preferred Stock shall mean
with respect to each share of Preferred Stock:

     (i) if the exercise is in connection with an Initial Public Offering, and if the
Company’s Registration Statement relating to such Initial Public Offering has been declared
effective by the SEC and the Initial Public Offering has closed, then the fair market value
per share shall be the product of (x) the initial “Price to Public” of the Common Stock
specified in the final prospectus with respect to the offering and (y) the number of shares
of Common Stock into which each share of Preferred Stock is convertible at the time of such
exercise;

     (ii) if the exercise is after, and not in connection with an Initial Public Offering,
and:

     (A) if the Common Stock is traded on a securities exchange, the fair market
value shall be deemed to be the product of (x) the average of the closing prices
over a five (5) day period ending three days before the day the current fair market
value of the securities is being determined and (y) the number of shares of Common
Stock into which each share of Preferred Stock was convertible at the time of the
Initial Public Offering; or

     (B) if the Common Stock is traded over-the-counter, the fair market value
shall be deemed to be the product of (x) the average of the closing bid and asked
prices quoted on the NASDAQ system (or similar system) over the five (5) day period
ending three days before the day the current fair market value of the securities is
being determined and (y) the number of shares of Common Stock into which each share
of Preferred Stock was convertible at the time of the Initial Public Offering;

     (iii) if at any time the Common Stock is not listed on any securities exchange or
quoted in the NASDAQ National Market or the over-the-counter market, the current fair
market value of Preferred Stock shall be the product of (x) the highest price per share
which the Company could obtain from a willing buyer (not a current employee or

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director) for shares of Common Stock sold by the Company, from authorized but unissued shares, as determined in good faith by its Board of Directors, unless the Company shall
become subject to a Merger Event, in which case the fair market value of Preferred Stock
shall be deemed to be the per share value received by the holders of the Company’s Preferred Stock on a common equivalent basis pursuant to such Merger Event, and (y) the
number of shares of Common Stock into which each share of Preferred Stock is convertible at
the time of such exercise; provided, however, that if such exercise occurs on or after the
time of a Conversion Event, the number of shares of Common Stock into which each share of
Preferred Stock is converted shall be the number of shares of Common Stock into which each
share of Preferred Stock was convertible at the time of the Conversion Event.

     Upon partial exercise of the Warrant, the Company shall promptly issue an amended Agreement
representing the remaining Warrant Coverage hereunder. All other terms and conditions of such
amended Agreement shall be identical to those contained herein, including, but not limited to the
Effective Date hereof.

     (b) Exercise Prior to Expiration. To the extent this Agreement is not previously
exercised as to all Preferred Stock subject hereto, and if the fair market value of one share of
the Preferred Stock is greater than the Exercise Price then in effect, this Agreement shall be
deemed automatically exercised pursuant to Section 3(a) (even if not surrendered) immediately
before its expiration. For purposes of such automatic exercise, the fair market value of one share
of the Preferred Stock upon such expiration shall be determined pursuant to Section 3(a). To the
extent this Agreement or any portion thereof is deemed automatically exercised pursuant to this
Section 3(b), the Company agrees to promptly notify the Warrantholder of the number of shares of
Preferred Stock, if any, the Warrantholder is to receive by reason of such automatic exercise.

          SECTION 4. RESERVATION OF SHARES.

     During the term of this Agreement, the Company will at all times have authorized and reserved
a sufficient number of shares of its Preferred Stock to provide for the exercise of the rights to
purchase Preferred Stock as provided for herein, and shall have authorized and reserved a
sufficient number of shares of its Common Stock to provide for the conversion of the Preferred
Stock available hereunder; provided, however, that if at any time the number of authorized but
unissued shares of Preferred Stock or Common Stock shall not be sufficient or shall not be
sufficient to effect the conversion of the Preferred Stock available hereunder, the Company shall
take such corporate action as may be necessary to increase its authorized but unissued shares of
Preferred Stock or Common Stock, as applicable, to such number of shares as shall be sufficient for
such purposes, including, without limitation, engaging in commercially reasonable best efforts to
obtain the requisite stockholder approval of the necessary amendment to the Certificate of
Incorporation.

          SECTION 5. NO FRACTIONAL SHARES OR SCRIP.

     No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Agreement, but in lieu of such fractional shares the Company shall make a cash payment
therefor upon the basis of the Exercise Price then in effect.

          SECTION 6. NO RIGHTS AS SHAREHOLDER/STOCKHOLDER.

     This Agreement does not entitle the Warrantholder to any voting rights or other rights as a
stockholder of the Company prior to the exercise of this Agreement.

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          SECTION 7. WARRANTHOLDER REGISTRY.

     The Company shall maintain a registry showing the name and address of the registered holder of
this Agreement. Warrantholder’s initial address, for purposes of such registry, is set forth below
Warrantholder’s signature on this Agreement. Warrantholder may change such address by giving
written notice of such changed address to the Company.

          SECTION 8. ADJUSTMENT RIGHTS.

     The Exercise Price and the number of shares of Preferred Stock purchasable hereunder are
subject to adjustment, as follows:

     (a) Merger Event. If at any time there shall be Merger Event, then, as a part of such
Merger Event, lawful provision shall be made so that the Warrantholder shall thereafter be entitled
to receive, upon exercise of this Agreement, the number of shares of preferred stock or other
securities or property of the successor corporation resulting from such Merger Event that would
have been issuable if Warrantholder had exercised this Agreement immediately prior to the Merger
Event. In any such case, appropriate adjustment (as determined in good faith by the Company’s
Board of Directors) shall be made in the application of the provisions of this Agreement with
respect to the rights and interests of the Warrantholder after the Merger Event to the end that the
provisions of this Agreement (including adjustments of the Exercise Price and number of shares of
Preferred Stock purchasable) shall be applicable in their entirety, and to the greatest extent
possible. Without limiting the foregoing, in connection with any Merger Event, upon the closing
thereof, the successor or surviving entity shall assume the obligations of this Agreement.
Notwithstanding anything to the contrary contained herein, with respect to any Merger Event, the
Warrantholder shall have the right to elect prior to the consummation of such Merger Event, to give
effect to the exercise rights contained in Section 3 of this Agreement instead of giving effect to
the provisions contained in this Section 8(a) with respect to this Warrant.

     (b) Reclassification of Shares. Except as set forth in Section 8(a), if the Company
at any time shall, by combination, reclassification, exchange or subdivision of securities or
otherwise, change any of the securities as to which purchase rights under this Agreement exist into
the same or a different number of securities of any other class or classes, this Agreement shall
thereafter represent the right to acquire such number and kind of securities as would have been
issuable as the result of such change with respect to the securities which were subject to the
purchase rights under this Agreement immediately prior to such combination, reclassification,
exchange, subdivision or other change.

     (c) Subdivision or Combination of Shares. If the Company at any time shall combine or
subdivide its Preferred Stock, (i) in the case of a subdivision, the Exercise Price shall be
proportionately decreased, or (ii) in the case of a combination, the Exercise Price shall be
proportionately increased.

     (d) Stock Dividends. If the Company at any time while this Agreement is outstanding
and unexpired shall:

     (i) pay a dividend with respect to the Preferred Stock payable in Preferred Stock,
then the Exercise Price shall be adjusted, from and after the date of determination of
stockholders entitled to receive such dividend or distribution, to that price determined by
multiplying the Exercise Price in effect immediately prior to such date of determination by
a fraction (A) the numerator of which shall be the total number of shares of Preferred
Stock outstanding immediately prior to such dividend or distribution, and (B) the
denominator of which shall be the total number of shares of Preferred Stock outstanding
immediately after such dividend or distribution; or

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     (ii) make any other distribution with respect to Preferred Stock (or stock into which
the Preferred Stock is convertible), except (i) any distribution specifically provided for
in any other clause of this Section 8 and (ii) any accruing dividends set forth in Article
FOURTH, Section B. 1. of the Company’s Charter or any comparable provision contained in the
Company’s Charter for any other series of Preferred Stock issued after the Effective Date
(“Accruing Dividends”), then, in each such case, provision shall be made by the
Company such that the Warrantholder shall receive upon exercise or conversion of this
Warrant a proportionate share of any such distribution as though it were the holder of the
Preferred Stock (or other stock for which the Preferred Stock is convertible) as of the
record date fixed for the determination of the stockholders of the Company entitled to
receive such distribution.

     (e) Antidilution Rights. The Company shall promptly provide the Warrantholder with
any restatement, amendment, modification or waiver of the Charter. The Company shall provide
Warrantholder with prior written notice of any Subsequent Round to occur after the Effective Date
of this Agreement, which notice shall include (a) the price at which such stock or security is to
be sold, (b) the number of shares to be issued, and (c) such other information as necessary for
Warrantholder to determine if a dilutive event has occurred.

     (f) Notice of Adjustments. If: (i) the Company shall declare any dividend or
distribution upon its stock, whether in stock, cash, property or other securities (and until
termination of the Loan Agreement, assuming Warrantholder consents to a dividend involving cash as
contemplated by Section 7.7 of the Loan Agreement); (ii) the Company shall offer for subscription
prorata to the holders of any class of its Preferred Stock or other convertible stock any
additional shares of stock of any class or other rights; (iii) there shall be any Merger Event;
(iv) there shall be an Initial Public Offering; (v) the Company shall sell, lease, license or
otherwise transfer all or substantially all of its assets; or (vi) there shall be any voluntary
dissolution, liquidation or winding up of the Company; then, in connection with each such event,
the Company shall send to the Warrantholder: (A) at least twenty (20) days’ prior written notice of
the date on which the books of the Company shall close or a record shall be taken for such
dividend, distribution, subscription rights (specifying the date on which the holders of Preferred
Stock shall be entitled thereto) or for determining rights to vote in respect of such Merger Event,
dissolution, liquidation or winding up; (B) in the case of any such Merger Event, sale, lease,
license or other transfer of all or substantially all assets, dissolution, liquidation or winding
up, at least twenty (20) days’ prior written notice of the date when the same shall take place (and
specifying the date on which the holders of Preferred Stock shall be entitled to exchange their
Preferred Stock for securities or other property deliverable upon such Merger Event, dissolution,
liquidation or winding up); and (C) in the case of an Initial Public Offering, the Company shall
give the Warrantholder at least twenty (20) days’ written notice prior to the effective date
thereof.

     Each such written notice shall set forth, in reasonable detail, (i) the event requiring the
notice, and (ii) if any adjustment is required to be made, (A) the amount of such adjustment, (B)
the method by which such adjustment was calculated, (C) the adjusted Exercise Price (if the
Exercise Price has been adjusted), and (D) the number of shares subject to purchase hereunder after
giving effect to such adjustment, and shall be given by first class mail, postage prepaid, or by
reputable overnight courier with all charges prepaid, addressed to the Warrantholder at the address
for Warrantholder set forth in the registry referred to in Section 7.

     (g) Timely Notice. Failure to timely provide such notice required by subsection (f)
above shall entitle Warrantholder to retain the benefit of the applicable notice period
notwithstanding anything to the contrary contained in any insufficient notice received by
Warrantholder. For purposes of this subsection (g), the notice period shall begin on the date
Warrantholder receives a

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written notice in accordance with Section 12(g) containing all the information required to be
provided in such subsection (f).

     SECTION 9. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.

     (a) Reservation of Preferred Stock. The Preferred Stock issuable upon exercise of the
Warrantholder’s rights hereunder as of the Effective Date has been duly and validly reserved and,
when issued in accordance with the provisions of this Agreement, will be validly issued, fully paid
and non-assessable, and will be free of any taxes, liens, charges or encumbrances of any nature
whatsoever; provided, that the Preferred Stock issuable pursuant to this Agreement may be
subject to restrictions on transfer under state and/or federal securities laws. On or prior to the
Effective Date, the Company has made available to the Warrantholder true, correct and complete
copies of its Charter and current bylaws. The issuance of certificates for shares of Preferred
Stock upon exercise of this Agreement shall be made without charge to the Warrantholder for any
issuance tax in respect thereof, or other cost incurred by the Company in connection with such
exercise and the related issuance of shares of Preferred Stock; provided, that the Company
shall not be required to pay any tax which may be payable in respect of any transfer and the
issuance and delivery of any certificate in a name other than that of the Warrantholder, and no
such issuance or delivery shall be made unless and until the person requesting such issuance has
paid to the Company the amount of any such tax, or has established to the satisfaction of the
Company that such tax has been paid.

     (b) Due Authority. The execution and delivery by the Company of this Agreement and
the performance of all obligations of the Company hereunder, including the issuance to
Warrantholder of the right to acquire the shares of Preferred Stock and the Common Stock into which
it may be converted, have been duly authorized by all necessary corporate action on the part of the
Company. This Agreement: (1) does not violate the Company’s Charter or current bylaws; (2) does
not contravene any law or governmental rule, regulation or order applicable to it; and (3) does not
and will not contravene any provision of, or constitute a default under, any indenture, mortgage,
contract or other instrument to which it is a party or by which it is bound, other than, in the
case of (2) and (3) above, any such violation or contravention that would not have a material
adverse affect on the business or financial condition of the Company. This Agreement constitutes a
legal, valid and binding agreement of the Company, enforceable in accordance with its terms, except
as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance,
and any other laws of general application affecting enforcement of creditors’ rights generally, and
as limited by laws relating to the availability of specific performance, injunctive relief, or
other equitable remedies.

     (c) Consents and Approvals. No consent or approval of, giving of notice to,
registration with, or taking of any other action in respect of any state, federal or other
governmental authority or agency is required with respect to the execution, delivery and
performance by the Company of its obligations under this Agreement, except for the filing of
notices pursuant to Regulation D under the Act and any filing required by applicable state
securities law, which filings will be effective by the time required thereby.

     (d) Issued Securities. All issued and outstanding shares of Common Stock, Preferred
Stock or any other securities of the Company have been duly authorized and validly issued and are
fully paid and nonassessable. All outstanding shares of Common Stock, Preferred Stock and any
other securities were issued in full compliance with all federal and state securities laws. In
addition, as of the date immediately preceding the date of this Agreement:

     (i) The authorized capital of the Company consists of (A)100,000,000 shares of Common
Stock, of which 3,066,663 shares are issued and outstanding, and (B)

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10,719,511 shares of Preferred Stock, of which 521,852 are designated as Series A
Preferred Stock, 2,901,052 are designated as Series B Preferred Stock and 7,296,607 are
designated as Series C Preferred Stock. The following shares of Preferred Stock are issued
and outstanding: 475,541 shares of Series A Preferred Stock; 2,901,052 shares of Series B
Preferred Stock and 7,296,607 shares of Series C Preferred Stock.

     (ii) The Company has reserved 5,453,740 shares of Common Stock for issuance under its
Glori Oil Limited Amended and Restated 2006 Stock Option and Grant Plan, under which
4,608,226 options are outstanding. There are no other options, warrants, conversion
privileges or other rights presently outstanding to purchase or otherwise acquire any
authorized but unissued shares of the Company’s capital stock or other securities of the
Company, except for a warrant issued to Silicon Valley Bank dated August 5, 2008 and a
warrant issued to GTI Glori Oil Fund I L.P. dated November 30, 2006. The Company has no
outstanding loans to any employee, officer or director of the Company, and the Company
agrees not to enter into any such loan or otherwise guarantee the payment of any loan made
to an employee, officer or director by a third party.

     (iii) No stockholder of the Company has preemptive rights to purchase new issuances
of the Company’s capital stock, other than as set forth in Section 4 of the Third Amended
and Restated Investors’ Rights Agreement, dated as of December 30, 2011, among the Company
and the investors named therein, as amended by the First Amendment to the Third Amended and
Restated Investors’ Rights Agreement, dated as of January 19, 2012, among the Company and
the investors named therein (the “Investors’ Rights Agreement”).

     (e) Insurance. As of the Effective Date, the Company has in full force and effect
insurance policies, with extended coverage, insuring the Company and its property and business
against such losses and risks, and in such amounts, as are customary for corporations engaged in a
similar business and similarly situated and as otherwise may be required pursuant to the terms of
any other contract or agreement.

     (f) Other Commitments to Register Securities. Except as set forth in the Investors’
Rights Agreement, the Company is not, pursuant to the terms of any other agreement in existence as
of the Effective Date, under any obligation to register under the Act any of its presently
outstanding securities or any of its securities which may hereafter be issued.

     (g) Exempt Transaction. Subject to the accuracy of the Warrantholder’s
representations in Section 10, the issuance of the Preferred Stock upon exercise of this Agreement,
and the issuance of the Common Stock upon conversion of the Preferred Stock, will each constitute a
transaction exempt from (i) the registration requirements of Section 5 of the Act, in reliance upon
Section 4(2) thereof, and (ii) the qualification requirements of the applicable state securities
laws.

     (h) Compliance with Rule 144. If the Warrantholder proposes to sell Preferred Stock
issuable upon the exercise of this Agreement, or the Common Stock into which it is convertible, in
compliance with Rule 144 promulgated under the Act and if the Company is a reporting issuer as
described in Rule 144(c)(1) promulgated under the Act, then, upon Warrantholder’s written request
to the Company, the Company shall furnish to the Warrantholder, within ten days after receipt of
such request, a written statement confirming the Company’s compliance with the filing requirements
set forth in Rule 144(c)(1) promulgated under the Act, as such Rule may be amended from time to
time.

     (i) Information Rights. From the Effective Date until the date a registration
statement is declared effective in connection with an Initial Public Offering, Warrantholder shall

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be entitled to the information rights contained in Section 7.1 of the Loan Agreement, and
Section 7.1 of the Loan Agreement is hereby incorporated into this Agreement by this reference as
though fully set forth herein, provided, however, that the Company shall not be required to deliver
a Compliance Certificate once all Indebtedness (as defined in the Loan Agreement) owed by the
Company to Warrantholder has been repaid. Notwithstanding anything to the contrary contained
herein, only Hercules Technology Growth Capital, Inc. and its Affiliates shall be entitled to the
rights set forth in this Section 9(i) for so long as Warrantholder or an Affiliate is a
Warrantholder and no other assignee or transferee of this Warrant or any of the rights hereunder
shall be entitled to the information rights set forth in this Section 9(i).

     SECTION 10. REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER.

     This Agreement has been entered into by the Company in reliance upon the following
representations and covenants of the Warrantholder:

     (a) Investment Purpose. The right to acquire Preferred Stock or the Preferred Stock
issuable upon exercise of the Warrantholder’s rights contained herein or the Common Stock issuable
upon conversion of the Preferred Stock will be acquired for investment for the Warrantholder’s own
account and not with a view to the sale or distribution of any part thereof, and the Warrantholder
has, and at the time of exercise will have, no present intention of selling or engaging in any
public distribution of the same except pursuant to registration or exemption under the Act.

     (b) Private Issue. The Warrantholder understands (i) that the Preferred Stock (and
the Common Stock issuable upon conversion of the Preferred Stock) issuable upon exercise of this
Agreement is not registered under the Act or qualified under applicable state securities laws on
the ground that the issuance contemplated by this Agreement will be exempt from the registration
and qualifications requirements thereof, (ii) that this Warrant and the Preferred Stock (and the
Common Stock issuable upon conversion of the Preferred Stock) to be issued upon exercise hereof are
“restricted securities” under the federal securities laws inasmuch as they are being acquired from
the Company in a transaction not involving a public offering and that, under such laws and
applicable regulations, such securities may be resold without registration under the Act only in
certain limited circumstances, and (iii) that the Company’s reliance on such exemption is
predicated on the representations set forth in this Section 10.

     (c) Financial Risk. The Warrantholder has such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of its investment, and has
the ability to bear the economic risks of the investment in this Warrant. The Warrantholder has
had an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the offering of the Warrant and the business, properties, prospects and financial
condition of the Company.

     (d) Risk of No Registration. The Warrantholder understands that if the Company does
not register with the SEC pursuant to Section 12 of the Securities Exchange Act of 1934 (the
“1934 Act”), or file reports pursuant to Section 15(d) of the 1934 Act, or if a
registration statement covering the securities under the Act is not in effect when it desires to
sell (i) the rights to purchase Preferred Stock pursuant to this Agreement or (ii) the Preferred
Stock issuable upon exercise of the right to purchase, it may be required to hold such securities
for an indefinite period. The Warrantholder also understands that any sale of (A) its rights
hereunder to purchase Preferred Stock or (B) Preferred Stock issued or issuable hereunder which
might be made by it in reliance upon Rule 144 promulgated under the Act may be made only in
accordance with the terms and conditions of that Rule.

10

 

     (e) Accredited Investor. Warrantholder is an “accredited investor” within the meaning
of the Rule 501 of Regulation D promulgated under the Act, as presently in effect.

     (f) Authorization. The Warrantholder has full power and authority to enter into this
Agreement. This Agreement constitutes a legal, valid and binding agreement of the Warrantholder,
enforceable in accordance with its terms.

     (g) Agreement to Comply with the Securities Act; Legend. The Warrantholder, by
acceptance of this Warrant, agrees to comply in all respects with the provisions of this Section
10(g) and the restrictive legend requirements set forth on the face of this Warrant and further
agrees that such Warrantholder shall not offer, sell or otherwise dispose of this Warrant or any
shares of Preferred Stock or Common Stock to be issued upon exercise hereof except under
circumstances that will not result in a violation of the Act. This Warrant and all Preferred Stock
and Common Stock issued upon exercise of this Warrant (unless registered under the Act) shall be
stamped or imprinted with a legend in substantially the form set forth on the first page of this
Agreement.

     (h) Voting Agreement. Notwithstanding anything to the contrary contained herein, if
this Warrant is exercised in whole or in part during the term of the Third Amended and Restated
Voting Agreement, dated as of December 30, 2011, among the Company, each holder of the Company’s
preferred stock and the holders of Common Stock named therein, as amended by the First Amendment to
the Third Amended and Restated Voting Agreement, dated as of January 19, 2012, among the Company,
each holder of the Company’s preferred stock and the holders of Common Stock named therein (as such
agreement may be amended or amended and restated from time to time, the “Voting
Agreement”), the Warrantholder shall become a party to the Voting Agreement by executing an
Adoption Agreement or a counterpart signature page to the Voting Agreement agreeing to be bound by
and subject to the terms of the Voting Agreement and any other documents required to be executed
and delivered by the Voting Agreement, all in accordance with Section 6.1 of the Voting Agreement,
as such provision may be amended or amended and restated from time to time. Compliance with this
Section 10(h) shall be a pre-condition to the exercise of this Warrant and the issuance by the
Company of any securities hereunder.

     (i) Lock-up Agreement. On or prior to the Effective Date, the Warrantholder shall
enter into a lockup agreement in favor of the underwriters in connection with the Company’s
contemplated initial public offering, as described in the Company’s Registration Statement on Form
S-1 (333-177172), as amended, filed with the SEC.

          SECTION 11. TRANSFERS.

     In connection with a collateral arrangement arising out of Warrantholder’s borrowing
arrangements with its lenders, each taker and holder of this Agreement, by taking or holding the
same, consents and agrees that this Agreement, when endorsed in blank (and subject to the other
transfer requirements set forth in this Section 11), shall be deemed negotiable, and that the
holder hereof, when this Agreement shall have been so endorsed and its transfer recorded on the
Company’s books, shall be treated by the Company and all other persons dealing with this Agreement
as the absolute owner hereof for any purpose and as the person entitled to exercise the rights
represented by this Agreement. Subject to compliance with applicable federal and state securities
laws, the transfer conditions referred to in the legend endorsed hereon and the transfer conditions
set forth in this Section 11, this Warrant and all rights hereunder are transferable, in whole or
in part, by the Warrantholder without charge to the Warrantholder, upon surrender of this Warrant
to the Company at its then principal executive offices with a properly completed and duly executed
notice of transfer in the form attached hereto as Exhibit III (the “Transfer Notice”),
together with funds sufficient to pay any transfer taxes described in Section 9(a) in connection

11

 

with the making of such transfer. Upon such compliance, surrender and delivery and, if required,
such payment, the transfer of the Warrant shall be recorded on the books of the Company and the
Company shall execute and deliver a new Warrant in the name of the assignee or assignees and in the
denominations specified in such Transfer Notice, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant, if any, not so assigned and this Warrant shall promptly be
cancelled. The Warrantholder shall not transfer the Warrant or any of the rights hereunder without
the prior written approval of the Company, which approval shall not be unreasonably withheld, to
any individual, person, corporation, partnership or other entity that is a direct competitor of the
Company. Notwithstanding anything to the contrary contained herein, no assignee or transferee of
this Warrant or any of the rights hereunder (except any Affiliate of Warrantholder) shall be
entitled to the information rights set forth in Section 9(i) of this Agreement or any other
non-public information relating to the Company.

          SECTION 12. MISCELLANEOUS.

     (a) Effective Date. The provisions of this Agreement shall be construed and shall be
given effect in all respects as if it had been executed and delivered by the parties hereto on the
date hereof. This Agreement shall be binding upon any successors and assigns of the Company and
the successors and permitted assigns of the Warrantholder.

     (b) Remedies. In the event of any default hereunder, the non-defaulting party may
proceed to protect and enforce its rights either by suit in equity and/or by action at law,
including but not limited to an action for damages as a result of any such default, and/or an
action for specific performance for any default where such party will not have an adequate remedy
at law and where damages will not be readily ascertainable. Each party to this Agreement expressly
agrees that it shall not oppose an application by the other party or any other person entitled to
the benefit of this Agreement requiring specific performance of any or all provisions hereof or
enjoining the breaching party from continuing to commit any such breach of this Agreement.

     (c) No Impairment of Rights. The Company will not, by amendment of its Charter or
through any other means, avoid or seek to avoid the observance or performance of any of the terms
of this Agreement, but will at all times in a commercially reasonable manner assist in the carrying
out of all such terms.

     (d) Additional Documents. The Company, upon execution of this Agreement, shall
provide the Warrantholder with certified resolutions relating to (i) the reservation of the
Preferred Stock issuable upon exercise of the Warrantholder’s rights hereunder as of the Effective
Date and (ii) the authorization of the execution and delivery by the Company of this Agreement and
the performance of all obligations of the Company hereunder, including the issuance to the
Warrantholder of the right to acquire the shares of Preferred Stock and the Common Stock into which
it may be converted.

     (e) Attorney’s Fees. In any litigation, arbitration or court proceeding between the
Company and the Warrantholder relating hereto, the prevailing party shall be entitled to attorneys’
fees and expenses and all costs of proceedings incurred in enforcing this Agreement. For the
purposes of this Section 12(e), attorneys’ fees shall include without limitation fees incurred in
connection with the following: (i) contempt proceedings; (ii) discovery; (iii) any motion,
proceeding or other activity of any kind in connection with an insolvency proceeding; (iv)
garnishment, levy, and debtor and third party examinations; and (v) post-judgment motions and
proceedings of any kind, including without limitation any activity taken to collect or enforce any
judgment.

     (f) Severability. In the event any one or more of the provisions of this Agreement
shall for any reason be held invalid, illegal or unenforceable, the remaining provisions of this

12

 

Agreement shall be unimpaired, and the invalid, illegal or unenforceable provision shall be
replaced by a mutually acceptable valid, legal and enforceable provision, which comes closest to
the intention of the parties underlying the invalid, illegal or unenforceable provision.

     (g) Notices. Except as otherwise provided herein, any notice, demand, request,
consent, approval, declaration, service of process or other communication that is required,
contemplated, or permitted under this Agreement or with respect to the subject matter hereof shall
be in writing, and shall be deemed to have been validly served, given, delivered, and received upon
the earlier of: (i) the day of transmission by facsimile or hand delivery if transmission or
delivery occurs on a Business Day at or before 5:00 pm in the time zone of the recipient, or, if
transmission or delivery occurs on a non-Business Day or after such time, the first Business Day
thereafter, or the first Business Day after deposit with an overnight express service or overnight
mail delivery service; or (ii) the third calendar day after deposit in the United States mails,
with proper first class postage prepaid, and shall be addressed to the party to be notified as
follows:

If to Warrantholder:

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

Legal Department

Attention: Chief Legal Officer and Manuel Henriquez

400 Hamilton Avenue, Suite 310

Palo Alto, CA 94301

Facsimile: 650-473-9194

Telephone: 650-289-3060

With a copy to:

SIDLEY AUSTIN LLP

Attn: Pamela J. Martinson

1001 Page Mill Road, Bldg. 1

Palo Alto, CA 94304

Facsimile: 650-565-7100

Telephone: 650-565-7044

(i) If to the Company:

GLORI ENERGY INC.

Attention: Victor M. Perez, Chief Financial Officer

4315 South Drive

Houston, Texas 77053

Facsimile: 713-237-8585

Telephone: 832-412-1432

With a copy to:

FULBRIGHT & JAWORSKI L.L.P.

Attn: Charles D. Powell

Fulbright Tower

1301 McKinney, Suite 5100

Facsimile: 713-651-5246

Telephone: 713-651-5431

13

 

or to such other address as each party may designate for itself by like notice.

     (h) Entire Agreement; Amendments. This Agreement constitute the entire agreement and
understanding of the parties hereto in respect of the subject matter hereof, and supersede and
replace in their entirety any prior proposals, term sheets, letters, negotiations or other
documents or agreements, whether written or oral, with respect to the subject matter hereof
(including Lender’s revised proposal letter dated March 16, 2012). None of the terms of this
Agreement may be amended except by an instrument executed by each of the parties hereto.

     (i) Headings. The various headings in this Agreement are inserted for convenience
only and shall not affect the meaning or interpretation of this Agreement or any provisions hereof.

     (j) Advice of Counsel. Each of the parties represents to each other party hereto that
it has discussed (or had an opportunity to discuss) with its counsel this Agreement and,
specifically, the provisions of Sections 12(m), 12(n), 12(o), 12(p) and 12(r).

     (k) No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

     (l) No Waiver. No omission or delay by a party to this Agreement at any time to
enforce any right or remedy reserved to it, or to require performance of any of the terms,
covenants or provisions hereof by the other party to this Agreement at any time designated, shall
be a waiver of any such right or remedy, nor shall it in any way affect the right of such party to
enforce such provisions thereafter.

     (m) Survival. Except as otherwise provided herein, all agreements set forth in
Sections 10(g), 10(h) and 12(r) hereof and all representations and warranties contained in this
Agreement shall survive the execution and delivery of this Agreement and the expiration or other
termination of this Agreement.

     (n) Governing Law. This Agreement has been negotiated and delivered to Warrantholder
in the State of California, and shall have been accepted by Warrantholder in the State of
California. Delivery of Preferred Stock to Warrantholder by the Company under this Agreement is
due in the State of California. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of California, excluding conflict of laws principles that
would cause the application of laws of any other jurisdiction.

     (o) Consent to Jurisdiction and Venue. All judicial proceedings arising in or under
or related to this Agreement may be brought in any state or federal court located in the State of
California. By execution and delivery of this Agreement, each party hereto generally and
unconditionally: (i) consents to nonexclusive personal jurisdiction in Santa Clara County, State of
California; (ii) waives any objection as to jurisdiction or venue in Santa Clara County, State of
California; and (iii) agrees not to assert any defense based on lack of jurisdiction or venue in
the aforesaid courts. Service of process on any party hereto in any action arising out of or
relating to this Agreement shall be effective if given in accordance with the requirements for
notice set forth in Section 12(g), and shall be deemed effective and received as set forth in
Section 12(g). Nothing herein shall affect the right to serve process in any other manner
permitted by law or shall limit the right of either party to bring proceedings in the courts of any
other jurisdiction.

     (p) Mutual Waiver of Jury Trial/Judicial Reference.

14

 

          (i) Because disputes arising in connection with complex financial transactions are most
quickly and economically resolved by an experienced and expert person and the parties wish
applicable state and federal laws to apply (rather than arbitration rules), the parties desire that
their disputes be resolved by a judge applying such applicable laws. EACH OF THE COMPANY AND
WARRANTHOLDER SPECIFICALLY WAIVE ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION,
CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”)
ASSERTED BY THE COMPANY AGAINST WARRANTHOLDER OR ITS ASSIGNEE OR BY WARRANTHOLDER OR ITS ASSIGNEE
AGAINST THE COMPANY. This waiver extends to all such Claims, including Claims that involve Persons
other than the Company and Warrantholder; Claims that arise out of or are in any way connected to
the relationship between the Company and Warrantholder; and any Claims for damages, breach of
contract, specific performance, or any equitable or legal relief of any kind, arising out of this
Agreement.

          (ii) If the waiver of jury trial set forth in Section 12(p)(i) is ineffective or
unenforceable, the parties agree that all Claims shall be resolved by reference to a private judge
sitting without a jury, pursuant to Code of Civil Procedure Section 638, before a mutually
acceptable referee or, if the parties cannot agree, a referee selected by the Presiding Judge of
the Santa Clara County, California. Such proceeding shall be conducted in Santa Clara County,
California, with California rules of evidence and discovery applicable to such proceeding.

          (iii) In the event Claims are to be resolved by judicial reference, either party may seek from
a court identified in Section 12(o), any prejudgment order, writ or other relief and have such
prejudgment order, writ or other relief enforced to the fullest extent permitted by law
notwithstanding that all Claims are otherwise subject to resolution by judicial reference.

     (q) Counterparts. This Agreement and any amendments, waivers, consents or supplements
hereto may be executed in any number of counterparts, and by different parties hereto in separate
counterparts, each of which when so delivered shall be deemed an original, but all of which
counterparts shall constitute but one and the same instrument.

     (r) Specific Performance. The parties hereto hereby declare that it is impossible to
measure in money the damages which will accrue to Warrantholder by reason of the Company’s failure
to perform any of the obligations under this Agreement and agree that the terms of this Agreement
shall be specifically enforceable by Warrrantholder. If Warrantholder institutes any action or
proceeding to specifically enforce the provisions hereof, any person against whom such action or
proceeding is brought hereby waives the claim or defense therein that Warrantholder has an adequate
remedy at law, and such person shall not offer in any such action or proceeding the claim or
defense that such remedy at law exists.

[Remainder of Page Intentionally Left Blank]

15

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by its
officers thereunto duly authorized as of the Effective Date.

	 	 	 	 	 	 	 

	COMPANY:	 	GLORI ENERGY INC.
	 
	 	 	 	 	 	 
	 

	 	               By:

               Name:
	 	/s/ Victor M. Perez
 

Victor M. Perez
	 	 
	 

	 	               Title:
	 	Chief Financial Officer	 	 

	 	 	 	 	 	 	 

	WARRANTHOLDER:	 	HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
	 
	 	 	 	 	 	 
	 

	 	          By:	 	/s/ K. Nicholas Martitsch	 	 
	 

	 	 	 	 

	 	 
	 

	 	          Name:	 	K. Nicholas Martitsch	 	 
	 

	 	          Title:	 	Associate General Counsel	 	 
	 

	 	 	 	 

	 	 

16

 

EXHIBIT I

NOTICE OF EXERCISE

To: [____________________________]

	(1)	 	The undersigned Warrantholder hereby elects to purchase [_______] shares of the Series [__]
Preferred Stock of [_________________], pursuant to the terms of the Agreement dated the [___]
day of [______, _____] (the “Agreement”) between [_________________] and the Warrantholder,
and [CASH PAYMENT: tenders herewith payment of the Purchase Price in full, together with all
applicable transfer taxes, if any.] [NET ISSUANCE: elects pursuant to Section 3(a) of the
Agreement to effect a Net Issuance.]

	(2)	 	Please issue a certificate or certificates representing said shares of Series [__] Preferred
Stock in the name of the undersigned or in such other name as is specified below and that
Warrant Coverage in the amount of $[     ] remains under the Agreement.

	(3)	 	In connection with the exercise of the Warrant, the Warrantholder hereby confirms that each
of the representations and warranties made by the Warrantholder in Section 10(a) through
Section 10(e) of the Agreement are accurate in all respects as of the date of this Notice of
Exercise as if made on the date hereof.

	 	 	 	 	 	 	 

	 	 

	 

(Name)
	 	 
	 	 	 
	 	 	 	 
	 

	 	 

(Address)
	 	 

	 	 	 
	 	 	 	 
	     WARRANTHOLDER: HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

17

 

EXHIBIT II

ACKNOWLEDGMENT OF EXERCISE

The undersigned [__________________________], hereby acknowledge receipt of the “Notice of
Exercise” from Hercules Technology Growth Capital, Inc. to purchase [____] shares of the Series
[__] Preferred Stock of [_________________], pursuant to the terms of the Agreement, and further
acknowledges that [$______] of Warrant Coverage remains subject to the terms of the Agreement.

	 	 	 	 	 	 	 

	     COMPANY:	 	GLORI ENERGY, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

18

 

EXHIBIT III

TRANSFER NOTICE

(To transfer or assign the foregoing Agreement execute this form and supply required information.
Do not use this form to purchase shares.)

FOR VALUE RECEIVED, the foregoing Agreement and all rights evidenced thereby are hereby transferred
and assigned to

               
              
              
              
              
              

(Please Print)

whose address is      
          
              
              
              

               
              
              
              
              
              

	 	 	 	 	 	 	 

	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Holder’s Signature:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Holder’s Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 

	 	 

	 	 

Signature Guaranteed:                
              
              
              
              
              

NOTE: The signature to this Transfer Notice must correspond with the name as it appears on the face
of the Agreement, without alteration or enlargement or any change whatever. Officers of
corporations and those acting in a fiduciary or other representative capacity should file proper
evidence of authority to assign the foregoing Agreement.

19exv10w14

Exhibit 10.14

Kenneth Nimitz

12 Turtle Creek Manor

Sugar Land, TX 77479

6th January 2012

Dear Ken:

     Glori Energy, Inc. (the “Company”) is pleased to offer you the position of Senior Vice
President of Operations. This letter sets forth the terms of your employment.

     Start Date, Position/Job Title, Duties: You will start as soon as possible but no
later than February 1, 2012 and will report to the CEO of the Company. Please note, by signing this
letter you confirm with the Company that you are under no contractual or other legal obligations
that would prohibit you from taking this position or performing your duties with the Company.

     Compensation: You will be paid a salary of $220,000 annually, less applicable taxes,
deductions and withholding (“Base Salary”), payable on the Company’s regular payroll dates. You
will be eligible for a performance bonus to be paid at Company discretion and anticipated to be up
to 30% of base salary.

     Employee Benefits: You will be eligible to participate in all present and future
medical, dental, vision, accident and disability plans, and all similar benefits made available
generally to employees of the Company. You also will be eligible to receive paid vacation time.
Currently, you will be eligible for four (4) weeks of paid vacation per year, which shall accrue on
a prorated basis. Materials regarding the Company’s employee benefits, including accrual of paid
time off, are being provided to you under separate cover.

     Stock: Contingent upon commencement of your employment and subject to the approval of
the Company’s Board of Directors, you will be granted an option (the “Option”) to purchase 250,000
shares of the Company’s common stock (the “Option Shares”) under the Company’s Stock Option/Stock
Issuance Plan (the “Plan”). The Option will have an exercise price equal to the fair market value
of the Company’s common stock as determined by the Company’s Board of Directors on the date that
the Option is approved by the Board, currently $1.15. It is intended that this Option will be
structured as an “incentive stock option” for federal income tax purposes. The Option shall be for
use under the Plan. As will be set forth in the Plan, the Option Shares granted to you shall be
subject to vesting and other terms and conditions. The Option and the Plan will be provided to you
under separate cover.

     Confidentiality, Proprietary Information and Inventions Assignment, and Non-Compete
Agreement: You will be required, as a condition of your employment with the Company, to sign
a Confidentiality, Proprietary Information and Inventions Assignment, and Non-Compete Agreement in
the form attached hereto (“Proprietary Information and Inventions Agreement”

4315 South Drive | Houston Texas 77053 | Tel: 713 237 8880 | Fax: 713 237 8585 | gloryenergy.com

 

 

or “PIIA”), which requires, among other provisions, the assignment of patent rights to any
invention made during your employment at the Company, a non-disclosure of proprietary information
as well as a restrictive covenant regarding employment with entities which compete with the Company
and non-solicitation of the Company’s employees for a period of time.

     Employment Relationship:

          1. At-Will Employment. Employment with the Company is for no specific period of time. Your
employment with the Company will be “at will,” meaning that either you or the Company may terminate
your employment at any time and for any reason, with or without cause. This is the full and
complete agreement between you and the Company on this term.

          2. Involuntary Termination. Despite our at-will relationship, if your employment is
terminated by the Company without “Cause” (as defined below) then, contingent upon your executing a
full and complete general release of and covenant not to sue the Company, you shall be entitled to
severance the following severance: continued Base Salary payment for four months, to be paid on
regular payroll dates.

          3. Termination for Cause. If the Company terminates your employment for Cause, then (i) the
Company’s obligations under this Letter Agreement shall immediately cease, and (ii) you shall not
be entitled to receive payment of, and the Company shall have no obligation to pay, any severance
or similar compensation attributable to such termination, other than the portion of your Base
Salary then earned but unpaid.

          4. Definitions.

               “Cause” shall mean (i) the commission of any act of fraud or embezzlement by you; (ii) any
unauthorized use or disclosure by you of any material confidential information or trade secrets of
the Company; (iii) your indictment for, conviction of, or plea of no contest with respect to any
felony violation or any crime of moral turpitude or dishonesty; (iv) your unauthorized absence from
work for reasons other than illness or legally protected leave of absence; (v) your substance abuse
or other misconduct that in any manner that materially interferes with the performance of your
duties on behalf of the Company; (vi) any failure or refusal by you to perform your duties in an
acceptable manner or to follow the lawful and proper directives of the Board that are within the
scope of your duties in each case after a reasonable notice and cure period not less than 15 days;
or (vii) any other misconduct by you that adversely affects the business or affairs of the Company
after a reasonable notice and cure period not less than 15 days.

     Outside Activities: While you render services to the Company, you will devote your
full time and attention to the Company and agree that you will not engage in any other employment,
consulting or other business activity without the written consent of the CEO.

4315 South Drive | Houston Texas 77053 | Tel: 713 237 8880 | Fax: 713 237 8585 | glorioil.com

 

 

     Withholding Taxes: All forms of compensation referred to in this letter are
subject to applicable withholding and payroll taxes.

     Tax and Legal Advice: By signing this letter, you acknowledge that you have had an
opportunity to consult with legal counsel and tax and other advisors regarding this Letter
Agreement.

     Severability: If any provision of this Letter Agreement is held illegal, invalid or
unenforceable to any extent, this Letter Agreement shall be construed and enforced as if such
provision was never a part of this Letter Agreement and the remaining provision of this Letter
Agreement shall remain in full force and effect and shall not be affected by illegal, invalid or
unenforceable provision or by their severance.

     Entire Agreement: If you wish to accept this offer, please sign and date this letter
below where indicated. You will be required to sign the enclosed PIIA and return it on your first
day of employment. This Letter Agreement along with the PIIA supersede all prior discussions and
agreements, whether written, oral or implied, among the parties with respect to the subject matter
hereof and contain the sole and entire agreement between you and the Company with respect to the
subject matter herein. You further represent, warrant, and agree that, except as expressly set
forth herein, no representations or promises, whether expressed, implied or otherwise, of any kind,
nature or description whatsoever have been made to you by the Company or relied upon by you as an
inducement to entering into this Letter Agreement.

     Proof of Right to Work: As required by law, your employment with the Company is also
contingent upon your providing legal proof of your identity and authorization to work in the United
States.

     Controlling Law: This Letter Agreement shall be construed and interpreted in
accordance with the laws of the State of Texas without giving effect to conflict of law principles.
With respect to any suit, action, or other proceeding arising from (or relating to) this Letter
Agreement or your employment, you and the Company irrevocably agree to the exclusive personal
jurisdiction and venue of any shared stated federal or Texas state court within Harris County,
Texas.

     Successors or Assigns: This Letter Agreement shall inure to the benefit of any
successor or assigns of the Company; you shall not be entitled to assign any of your rights or
obligations under this Letter Agreement. The terms and provision of this Letter Agreement are
intended solely for the benefit of each party hereto and the Company’s successors or assigns, and
it is not the intention of the parties to confer third-party beneficiary rights upon any other
person.

     We are very excited about the prospect of your joining the Company. We look forward to your
favorable reply and to a productive working relationship. This offer, if not accepted, will expire
at the close of business on Friday, January 13th, 2012.

     If you have any questions regarding this offer, please call me.

4315 South Drive | Houston Texas 77053 | Tel: 713 237 8880 | Fax: 713 237 8585 | glorioil.com

 

 

Sincerely,

/s/ Stuart Page

Stuart Page, CEO

I accept this Letter Agreement:

	 	 	 

	/s/ Kenneth Nimitz
 

	 	 

Kenneth Nimitz

Date: 1/7/2012

Attachment: 1. Confidentiality, Proprietary Information and Inventions Assignment, and
Non-Compete Agreement

4315 South Drive | Houston Texas 77053 | Tel: 713 237 8880 | Fax: 713 237 8585 | glorioil.com

 

 

CONFIDENTIALITY, PROPRIETARY INFORMATION AND

INVENTIONS ASSIGNMENT, AND NON-COMPETE AGREEMENT

     This Confidentiality,
Proprietary Information and Inventions Assignment, and Non-Compete
Agreement (the “Confidentiality Agreement” or “Agreement”) is
entered into between Kenneth E. Nimitz
(“I” or “me”) and Glori Energy Inc., a Delaware corporation
 (the “Company”), is entered into as of
January 11, 2012.

     In consideration of the following: (1) my employment by the Company; (2) the Company’s
initial and continued disclosure to me of certain Proprietary Information (as defined below); (3)
the initial and continued provision of specialized training by the Company to me; (4) any
compensation now and/or hereafter paid to me; and (5) for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, I hereby agree with the Company as
follows:

     1. Definitions:

          1.1
The term “Cause” shall mean (i) my commission of any act of personal dishonesty, fraud or
misrepresentation which was intended to or resulted in substantial gain or personal enrichment for
me at the expense of the Company; (ii) my conviction of, or plea of nolo contendere or guilty to a
felony or any other crime which involves moral turpitude; (iii) my breach of this Agreement; or
(iv) gross misconduct in the performance of my duties.

          1.2
 The term “Corporate Transaction” shall mean a change in ownership or control of the
Company effected through any of the following transactions:

               (a) a stockholder-approved merger, consolidation or other reorganization in which securities
representing more than 50% of the total combined voting power of the Company’s outstanding
securities are beneficially owned, directly or indirectly, by a person or persons different from
the person or persons who beneficially owned those securities immediately prior to such
transaction;

               (b) a stockholder-approved sale, transfer or other disposition of all or substantially all of
the Company’s assets; or

               (c) the acquisition, directly or indirectly, by any person or related group of persons (other
than the Company or a person that directly or indirectly controls, is controlled by, or is under
common control with, the Company), of beneficial ownership (within the meaning of Rule 13-d3 of
the 1934 Act) of securities possessing more than 50% of the total combined voting power of the
Company’s outstanding securities from persons other than the Corporation.

In no event shall either of the following be
deemed to constitute a Corporate Transaction: (A) any
public offering of the Company’s securities or (B) the sale by the Company of shares of its
capital stock to investors in bona fide financing transactions.

          1.3
The term “Inventions” means discoveries; developments; trade secrets; processes; formulas;
data; lists; software programs; and all other works of authorship, mask works, ideas, concepts,
know-how, designs, and techniques, whether or not any of the foregoing is or are patentable,
copyrightable, or registrable under any intellectual property laws or industrial property laws in
the United States or elsewhere. The term “Inventions” shall not apply to an invention that the
employee developed entirely on his or her own time without using the Company’s resources or
Proprietary Information or trade secret information, unless such inventions relate at the time of
conception or reduction to practice of the invention to (i) the business of the Company, which
shall include but not be limited to Microbial

Confidentiality Agreement

 

 

enhanced Oil Recovery and other microbial-based products/services for the oil & gas business (the
“Company Business”) or (ii) actual or demonstrably anticipated research or development of the
Company.

          1.4
The term “Proprietary Information” means information owned by the Company or licensed
from third parties regarding (a) research, development, products, services, marketing, selling,
business plans, budgets, unpublished financial statements, licenses, prices, costs, contracts and
other agreements, suppliers, customers, and customer lists; (b) the identity, skills and
compensation of employees, contractors, and consultants; (c) specialized training; and (d)
information related to Inventions owned by the Company or licensed from third parties. Proprietary
Information shall not include material already in the public domain through no action of my own or
actions of a third party not authorized to release such material into the public domain.

          1.5
The term “Service” means any period during which I am employed by the Company.

          1.6
The term “Third Party Information” means confidential or trade secret information that the
Company may from time to time receive from third parties or information related to Inventions of
third parties, which is subject to a duty on the Company’s part to maintain the confidentiality of
such Third Party Information and to use it only for certain limited purposes. Third Party
Information shall not include material already in the public domain through no action of my own or
actions of a third party not authorized to release such material into the public domain.

     2. Nondisclosure.

          2.1 I acknowledge that contemporaneously with my execution of this Agreement, the Company is
providing me with access to Proprietary Information (as noted on the attached Exhibit A) and
specialized training. I further acknowledge that throughout my Service the Company will continue
to provide Proprietary Information and specialized training to me. In consideration of the
Company’s provision of Proprietary Information and/or specialized training, I agree that during my
Service and thereafter, pursuant to this agreement (the “Nondisclosure Agreement”), I
 will hold in
strictest confidence and will not disclose, discuss, transmit, use, lecture upon, or publish any
Proprietary Information, except as such disclosure, discussion, transmission, use, or publication
may be required in connection with my Service, or unless the Board of Directors of the Company
expressly authorizes such in writing. I also agree that in connection with this Nondisclosure
Agreement, I will also be bound by the provisions of Section 7. I further acknowledge and agree
that the Company’s conduct in providing me with Proprietary Information and specialized training
in exchange for my Nondisclosure Agreement gives rise to the Company’s interest in restraining me
from competing against the Company as set forth in Section 7 (the “Non-Compete
Agreement”), and that my agreement to the Non-Compete Agreement is designed to enforce my
Nondisclosure Agreement.

          2.2 At all times during my Service and thereafter, I will hold Third Party Information in the
strictest confidence and will not disclose, discuss, transmit, use, lecture upon, or publish any
Third Party Information, except as such disclosure, discussion, transmission, use, or publication
may be required in connection with my Service, or unless the Board of Directors of the Company
expressly authorizes such in writing. Excluded from this clause items already in the public domain
through no action of my own or actions of a third party not authorized to release such material
into the public domain.

     3. Assignment.

          3.1
 The term “Ownership Rights” means all rights, title and interest (including but not
limited to Intellectual Property Rights) in property, whether that property is tangible or
intangible. The

			
	 	 	 
	Confidentiality Agreement
	 	Page 2

 

 

term “Intellectual Property Rights” means all intellectual property and industrial property rights
of any kind whatsoever throughout the world, including but not limited to patent rights, copyrights
(including but not limited to mask work rights), trade secret rights, and, if recognized, Moral
Rights (where “Moral Rights” means all rights related to paternity, integrity,
disclosure, and withdrawal). I hereby irrevocably assign to the Company any Ownership Rights I may
have or acquire in any Proprietary Information and acknowledge that all Proprietary Information
shall be the sole property of the Company and that the Company shall be the sole owner of all
Ownership Rights in connection therewith.

          3.2 The term “Company Inventions” means all Inventions that (a) relate to the business or
proposed business of the Company and that are discovered, developed, created, conceived, reduced
to practice, made, learned or written by me, either alone or jointly with others, in the course of
my Service; (b) utilize, incorporate or otherwise relate to Proprietary Information; (c) I
discovered, developed, created, conceived, reduced to practice, made, or wrote prior to or outside
the scope of my Service and that I have incorporated into any Inventions owned by or assigned to
the Company and/or its assigns; or (d) are discovered, developed, created, conceived, reduced to
practice, made, or written by me using Company property or equipment. I hereby irrevocably assign
to the Company all my Ownership Rights in and to any and all Company Inventions. All Inventions
made, during the period commencing with the date hereof and terminating one year after termination
of the employment relationship shall be presumed to have been conceived during my employment by
the Company unless I can prove conclusively that it was conceived after the termination of my
employment with the Company.

          3.3 I acknowledge and agree that any work of authorship comprising Company Inventions shall
be deemed to be a “work made for hire,” as that term is defined in the United States Copyright Act
(17 U.S.C. § 101 (2000)). To the extent that any such work of authorship may not be deemed to be a
work made for hire, I hereby irrevocably assign all my Ownership Rights in and to such work to the
Company. If any such work of authorship cannot be assigned, I hereby grant to the Company an
exclusive, assignable, irrevocable, perpetual, worldwide, sublicenseable (through one or multiple
tiers), royalty-free, unlimited license to use, reproduce, distribute, create derivative works of,
publicly perform, publicly display and digitally perform and display such work in any media now
known or hereafter known. Outside the scope of my Service, I agree not to (a) modify, adapt,
alter, translate, or create derivative works from any such work of authorship or (b) merge any
such work of authorship with other Inventions. Excluded from this definition are items already in
the public domain through no action of my own or actions of a third party not authorized to
release such material into the public domain. To the extent Moral Rights may not be assignable
under applicable law and to the extent the following is allowed by the laws in the various
countries where Moral Rights exist, I hereby irrevocably waive such Moral Rights and consent to
any action of the Company that would violate such Moral Rights in the
absence of such consent.

          3.4 I acknowledge and agree that nothing in this Agreement shall be deemed to grant, by
implication, estoppel or otherwise, (a) a license from the Company to me to make, use, license, or
transfer in any way a Company Invention or (b) a license from the Company to me regarding any of
the Company’s existing or future Ownership Rights.

          3.5 For clarity, the assignments in this section shall not apply to any material that the
employee developed entirely on his or her own time without using the company’s resources or
Proprietary Information or trade secret information, unless such materials relate at the time of
conception or reduction to practice of the materials to (i) the business of the company, which
shall include but not be limited to Microbial enhanced Oil Recovery and other microbial-based
products/services for the oil & gas business (the “Company Business”) or (ii) actual or
demonstrably anticipated research or development of the Company.

			
	 	 	 
	Confidentiality Agreement
	 	Page 3

 

 

     4. Enforcement of Rights.

          4.1 I will assist the Company in every proper way to obtain and from time to time enforce
Ownership Rights relating to Company Inventions in any and all countries. To that end I will
execute, verify, and deliver such documents and perform such other acts (including appearances as
a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting,
evidencing, sustaining, and enforcing such Ownership Rights and the assignment thereof. In
addition, I will execute, verify, and deliver assignments of such Ownership Rights to the Company.
My obligation to assist the Company with respect to Ownership Rights relating to such Company
Inventions in any and all countries shall continue beyond the termination of my Service, but the
Company shall compensate me at a mutually agreeable reasonable rate plus expenses after such
termination for the time actually spent by me at the Company’s request on such assistance.

          4.2 In the event the Company is unable for any reason, after reasonable effort, to secure my
signature on any document needed in connection with the actions specified in the preceding
paragraph, I hereby irrevocably designate and appoint the Company and its assigns duly authorized
officers and agents as my agent and attorney in fact, to act for and in my behalf to execute,
verify, and file any such documents and to do all other lawfully permitted acts to further the
purposes of the preceding paragraph thereon with the same legal force and effect as if executed by
me. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever, that
I now or may hereafter have for infringement of any Ownership Rights assigned hereunder to the
Company.

     5. Obligation to Keep Company Informed.

     During my Service, I will promptly disclose to the Company fully and in writing and will hold
in trust for the sole right and benefit of the Company any and all Company Inventions (but to the
extent a Company Invention is based only upon ideas or know-how, then the Company Invention must
be commercially material before it must be disclosed in writing to the Company). In addition,
during the first year after termination of my Service, I will provide the Company with a complete
copy of each patent application and copyright registration application (including but not limited
to any mask work registration application) that is either filed by me or that names me as an
inventor, co-inventor, author, co-author, creator, co-creator, developer, or co-developer. I will
not be obligated to provide such copy until such application becomes public record.

     6. Non-Solicitation and Non-Competition.

          6.1 During my Service, I will not, directly or indirectly, participate in the ownership,
management, operation, financing or control of, or be employed by or consult for or otherwise render
services to, any person, corporation, firm, or other entity that competes with the Company in the
state of Texas, or in any other state in the United States, in which the business of the Company is
conducted or has been proposed to be conducted, nor shall I engage in any other activities that
conflict with my obligations to the Company. Notwithstanding the foregoing, I am permitted to own
up to 1% of any class of securities of any corporation in competition with the Company that is
traded on a national securities exchange or through NASDAQ.

          6.2 During my Service and for a period of two years after my Service is terminated for any
reason, I will not, directly or indirectly, individually or on behalf of any other person, firm,
partnership, corporation or business entity of any type, solicit, assist or in any way encourage
any current employee or consultant of the Company to terminate his or her employment relationship
or consulting relationship with or for the Company, nor will I, directly or indirectly,
individually or on behalf of any other person, firm, partnership, corporation or business entity
that competes with the Company solicit the

			
	 	 	 
	Confidentiality Agreement
	 	Page 4

 

 

services of any former employee of the Company whose service has been terminated for less
than three (3) months. I acknowledge that these restrictions are fair, reasonable, ancillary to
Section 2.1 of this Agreement, and are required for the protection of the Company, including, but
not limited to, the protection of the goodwill of the Company, the Proprietary Information of the
Company (as provided to me), the Intellectual Property Rights of the Company, the Inventions of
the Company, as well as the business of the Company.

          6.3 For a period of (i) nine months after my Service is terminated by Company for Cause or I
resign my employment; or (ii) six months after my Service is terminated by the Company for any
reason other than Cause, I will not, directly or indirectly, individually or on behalf of any
other person, firm, partnership, corporation or business entity of any type, solicit to the
detriment of the Company and/or for the benefit of myself or any competitor of the Company, take
away or attempt to take away, in whole or in part, any Customer of the Company or otherwise
interfere with the Company’s relationship with any Customer, including inducing or attempting to
induce any customer, supplier, vendor or any other person to cease doing business with the Company
for any reason. For purposes of this Section 6(c), “Customer” shall mean prospective, present and
former (within the last twelve months) customers of the Company. I acknowledge that these
restrictions are fair, reasonable, ancillary to Section 2.1 of this Agreement, and are required
for the protection of the Company including, but not limited to, the protection of the goodwill of
the Company, Proprietary Information of the Company (as provided to me), Intellectual Property
Rights of the Company, Inventions of the Company, as well as the business interests of the
Company.

     7. Post-Employment
Non-Compete and Notice Agreement.

          
7.1 I agree that for (i) a nine month period following my resignation if I resign my
employment with the Company (the “Resignation
Non-Compete Period”); or (ii) a nine
month period
following the termination of employment by the Company for Cause (the
“Cause Non-Compete Period”);
or (iii) a six month period following the Company’s terminating my employment for any reason other
than for Cause (the “Termination Non-Compete Period”) except under the circumstances
as described
in this Section 7, I will not accept employment with a competing business of the Company,
whether such competing business competes with the Company directly or indirectly, in the state of
Texas, or in any other State of the United States or any other country in the world where the
Company engages or has plans to engage in business. I also agree that for the same period I will
not participate in the ownership, management, operation, financing or control of, or consult for or
otherwise render services to a competing business. Notwithstanding the foregoing, I am permitted to
own up to 1% of any class of securities of any corporation in competition with the Company that is
traded on a national securities exchange or through NASDAQ. I acknowledge that these restrictions
are fair, reasonable, ancillary to Section 2.1 of this Agreement, and are required for the
protection of the Company, including, but not limited to, the protection of the goodwill of the
Company, Proprietary Information of the Company (as provided to me), Intellectual Property Rights
of the Company, Inventions of the Company, as well as the business interests of the Company.

          
7.2 During my employment and during either the (i) Resignation Non-Compete Period; the (ii)
Cause Non-Compete Period or the (ii) Termination Non-Compete Period, as applicable, I agree to
provide written notice to either the Company’s Chairman, CEO or President (currently Jack Babcock)
notifying the Company of any employment which I intend to accept or self-employment in which I
intend to engage (the “New Employment Notice”). The New Employment Notice shall
provide the name
of the potential employer and a statement of the general nature of the potential employment or in
the case of self-employment, the business which I intend to engage. I agree to provide the New
Employment Notice at least 14 days prior to the anticipated scheduled commencement of such
employment.

			
	 	 	 
	Confidentiality Agreement
	 	Page 5

 

 

          
7.3 The Company agrees that within seven days of receiving such New Employment Notice,
the Company shall provide written notice (the “Non-Compete Election Notice”) to me as
to whether or
not the potential employment noted in the New Employment Notice would constitute a competing
business and whether or not the Company elects to enforce the non-competition covenant of
Section 7(a) herein (the “Non-Compete Covenant”). I understand that in
determining whether
or not it will elect to enforce the Non-Compete Covenant, the Company shall determine, in good
faith, whether or not such enforcement is necessary in order to protect its business interests,
goodwill, Proprietary Information, Intellectual Property Rights and Inventions. If the Company
elects to enforce such Non-Compete Covenant, I agree that I will decline the employment. If the
Company elects to enforce such Non-Compete Covenant and I do not comply with my obligations and
decline the employment, I understand that I will be in breach of this Agreement and will be liable
to the Company for any and all damages to which it may be entitled, including injunctive relief
enjoining me from working for such potential employer. I further understand that if I do not
receive a Non-Compete Election Notice within the required seven days, the Company is not electing
to enforce the Non-Compete Covenant. If the Company does not elect to enforce the Non-Competition
Covenant within the required seven days, it waives its right to do so and it cannot later attempt
to enforce such Non-Competition Covenant.

     8. No Improper Use of Materials. I represent and warrant that during my Service I
shall not use or incorporate into any Company Invention any confidential information or trade
secrets of any former employer, any person or entity for whom I provided services, or any other
person or entity, unless I have obtained all consents, licenses, or other rights necessary to
allow me to provide the Company with the assignments and licenses set forth herein. I represent
and warrant that during my Service I shall not improperly use or disclose any confidential or
trade secret information, if any, of any former employer or any other person or entity to whom I
have an obligation of confidentiality, and I will not bring onto the premises of the Company any
unpublished documents or any property belonging to any former employer or any other person or
entity to whom I have an obligation of confidentiality unless expressly consented to in writing by
that former employer, person, or entity. Excluded from this clause are items already in the public
domain through no action of my own or actions of a third party not authorized to release such
material into the public domain.

     9. No
Conflicting Obligation. I represent that my performance of all the terms of
this Confidentiality Agreement and my Service does not and will not breach any agreement between
me and any other employer, customer, person or entity. I have not entered into, and I agree I will
not enter into, any agreement either written or oral in conflict herewith.

     10. Return of Company Property. When my Service is completed, I will immediately
deliver to the Company all drawings, notes, memoranda, specifications, devices, formulas, and
documents (whether written, printed, or otherwise reproduced or recorded), together with all
copies thereof, and any other material containing or disclosing any Company Inventions, Third
Party Information or Proprietary Information. I will also immediately deliver all Company
property; including but not limited to laptops, pagers, cell phones, corporate credit cards, keys
and/or access cards. I further agree that all property situated on the Company’s premises and
owned, leased, or licensed by the Company, including disks and other storage media, filing
cabinets or other work areas, is subject to inspection by personnel of the Company at any time
with or without notice.

     11. Legal and Equitable Remedies. Because my services are personal and unique and
because I will have access to and become acquainted with Proprietary Information, the Company
shall have the right to enforce this Confidentiality Agreement and any of its provisions by
injunction, specific performance, or other equitable relief, without bond and without prejudice to
any other rights and remedies that the Company may have for a breach of this Confidentiality
Agreement.

			
	 	 	 
	Confidentiality Agreement
	 	Page 6

 

 

     12. Authorization to Notify New Employer. I hereby authorize the Company to provide a
written copy of this agreement or to notify in writing any new employer or entity for whom I
provide services about my rights and obligations under this Confidentiality Agreement for two
years following the termination of my Service.

     13. Non-disparagement. I agree that I will not make any negative or disparaging
statements or comments, either as fact or as opinion, about the Company, including but not limited
to its employees, officers, directors, shareholders, vendors, products or services, business,
technologies, market position, performance and other similar information concerning the Company.
The Company agrees that its Chief Executive Officers as well as the members of its Board of
Directors will not make any negative or disparaging statements or comments, either as fact or as
opinion, about me. Nothing contained in this paragraph is intended to prevent anyone from
testifying truthfully in any legal proceeding.

     14. Confidentiality. I acknowledge and agree that the terms and existence of this
Agreement are strictly confidential and may not be disclosed to anyone except my lawyer, spouse,
financial consultant or as necessary to perform my notification or disclosure obligations
hereunder. Without in any way limiting your agreement that this Agreement is confidential, I
expressly understand that I shall not disclose the existence or content of this Agreement to any
third party, potential employees, employees and former employees of the Company.

     15. Notices. Any notices required or permitted hereunder shall be given to the
appropriate party at the party’s last known address. Such notice shall be deemed given upon
personal delivery to the last known address or if sent by certified or registered mail, three days
after the date of mailing.

     16. General Provisions.

          16.1 Governing Law. This Confidentiality Agreement will be governed by and construed
according to the laws of the State of Texas without regard to conflicts of law principles.

          16.2 Exclusive Forum. I hereby irrevocably agree that the exclusive forum for any
suit, action, or other proceeding arising out of or in any way related to this Agreement shall be
in the state or federal courts in Texas, and I agree to the exclusive personal jurisdiction and
venue of any court in Travis County, Texas and waive any defense thereto.

          
16.3 Entire Agreement. This Confidentiality Agreement along with the Offer Letter
(collectively, the “Employment Agreements”) supersede all agreements, whether oral or
written, representations or discussions relating to the subject matter hereof and the Employment
Agreements set forth the entire agreement related to the subject matter hereof. No modification of
or amendment to any of the Employment Agreements nor any waiver of any rights under any of the
Employment Agreements, will be effective unless in writing signed by the party to be charged. Any
subsequent change or changes in my duties, salary, or compensation will not affect the validity or
scope of the Employment Agreements.

          16.4 Severability. I acknowledge and agree that each agreement and covenant set forth
herein constitutes a separate agreement independently supported by good and adequate consideration
and that each such agreement shall be severable from the other provisions of this Confidentiality
Agreement and shall survive this Confidentiality Agreement. I understand and agree that this
Confidentiality Agreement is to be enforced to the fullest extent permitted by law. Accordingly,
if a court of competent jurisdiction determines that the scope and/or operation of Section
7 of this Agreement is too broad to be enforced as written, the Company and I intend that the
court should reform such

			
	 	 	 
	Confidentiality Agreement
	 	Page 7

 

 

provision to such narrower scope and/or operation as it determines to be enforceable,
provided, however, that such reformation applies only with respect to the operation of such
provision in the particular jurisdiction with respect to which such determination was made. If,
however, Section 7 of this Agreement is held to be illegal, invalid, or unenforceable
under present or future law, and not subject to reformation, then (i) such provision shall be
fully severable, (ii) this Confidentiality Agreement shall be construed and enforced as if such
provision was never a part of this Confidentiality Agreement, and (iii) the remaining provisions
of this Confidentiality Agreement shall remain in full force and effect and shall not be affected
by the illegal, invalid, or unenforceable provision or by its
severance.

          16.5 Successors and Assigns. This Confidentiality Agreement will be binding upon my
heirs, executors, administrators, and other legal representatives and will be for the benefit of
the Company, its successors and assigns, except with regard to the non-compete covenants I have
made in Section 7. When there is a Corporate Transaction then the following changes shall
be made to Section 7: upon the closing of a Corporate Transaction, the Resignation
Non-Compete Period shall change from nine months to six months and the Termination Non-Compete
Period shall change from six months to three months. Notwithstanding, I expressly agree that the
Company has the right to assign this Confidentiality Agreement.

          16.6 Survival. The provisions of this Confidentiality Agreement shall survive the
termination of my Service for any reason and the assignment of this Confidentiality Agreement by
the Company to any successor in interest or other assignee.

          16.7 At-Will Relationship. I agree and understand that my Service is at will, which
means that either I or the Company may terminate the relationship at any time, with or without
prior notice and with or without cause. I further agree and understand that nothing in this
Confidentiality Agreement shall confer any right with respect to continuation of Service, nor
shall it interfere in any way with my right or the Company’s right to terminate my Service at any
time, with or without notice and with or without cause.

          16.8 Waiver. No waiver by the Company or Employee of any breach of this
Confidentiality Agreement shall be a waiver of any preceding or succeeding breach. No waiver by
the Company or Employee of any right under this Confidentiality Agreement shall be construed as a
waiver of any other right. Neither the Company nor the Employee shall be required to give notice
to enforce strict adherence to all terms of this Confidentiality Agreement.

          16.9 Recovery of Attorney’s Fees. In the event of any litigation arising from or
relating to this Confidentiality Agreement, the prevailing party in such litigation proceedings
shall be entitled to recover, from the non-prevailing party, the prevailing party’s costs and
reasonable attorney’s fees, in addition to all other legal or equitable remedies to which it may
otherwise be entitled.

          16.10 Headings. The headings to each section or paragraph of this Confidentiality
Agreement are provided for convenience of reference only and shall have no legal effect in the
interpretation of the terms hereof.

     I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS. I UNDERSTAND THAT THIS
AGREEMENT AFFECTS MY RIGHTS TO INVENTIONS I MAKE DURING MY SERVICE, RESTRICTS MY RIGHT TO
DISCLOSE OR USE PROPRIETARY INFORMATION DURING OR SUBSEQUENT TO MY PERIOD OF SERVICE, AND PROHIBIT
ME FROM COMPETING WITH THE COMPANY UNDER CIRCUMSTANCES NOTED IN THIS AGREEMENT AND/OR
FROM SOLICITING

			
	 	 	 
	Confidentiality Agreement
	 	Page 8

 

 

EMPLOYEES AND CUSTOMERS OF THE COMPANY UNDER CIRCUMSTANCES NOTED IN THIS AGREEMENT AFTER MY
SERVICE IS TERMINATED FOR ANY REASON.

[Signature Page Follows]

			
	 	 	 
	Confidentiality Agreement
	 	Page 9

 

 

Dated 1/11/2012 and effective as of such date.

	 	 	 

	 

	 	/s/ Kenneth E. Nimitz
	 	 	 
	 

	 	Name

ACCEPTED AND AGREED TO:

GLORI ENERGY INC.

	 	 	 	 	 

	By:

	 	/s/ Lynn Marie Thompson	 	 
	 

	 	 

	 	 
	Name:

	 	Lynn Marie Thompson	 	 
	Title:

	 	Finance & Admin Manager

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