Document:

ex10-12.htm

Exhibit 10.12

 

CONSULTING AGREEMENT

This CONSULTING AGREEMENT (the “Consulting Agreement”) is made and entered into on December __, 2012, by and between Joseph A. Ioia, a New Jersey resident with a business address of 229 Arlington Avenue, Staten Island, New York 10303 (“Ioia” or the “Consultant”)  and GlyEco, Inc., a Nevada corporation, with its principal place of business located at 4802 East Ray Road, #23-196, Phoenix, Arizona 85044 (the “Company” or “GlyEco”) (Ioia and Glyeco individually being a “Party” and together being the “Parties”).

 

	1.	R E C I T A L S       

1.1.   WHEREAS, Ioia is the sole shareholder of Full Circle MFG Group Inc., a New Jersey corporation  (“Full Circle”) and the sole member of NY Terminals II, LLC, a New Jersey limited liability company (“NY Terminals”); and

1.2.   WHEREAS, Ioia represents that to the best of his knowledge he is the original owner of certain intellectual property used by Full Circle in its business operations (the “IP”); and

1.3.   WHEREAS, Full Circle owns certain equipment it uses in its business operations (the “Equipment”); and

1.4.   WHEREAS, Full Circle has been issued a Class D Recycling Permit (the “D Permit”) by the New Jersey Department of Environmental Protection (the “DEP”); and

1.5.   WHEREAS, NY Terminals owns certain real property (the “Premises”) at which it provides services to Full Circle as part of Full Circle’s business operations; and

1.6.   WHEREAS, GlyEco has a wholly owned subsidiary called GlyEco Acquisition Corp. #4 (“GAC #4”);  and

1.7.   WHEREAS, as part of an integrated transaction (the “Transaction”), among other things, GAC #4 has entered into: A) an agreement with Ioia to acquire the IP (the “IP Assignment”), B) an agreement with Full Circle to lease the Equipment (the “Equipment Lease”), C) an agreement with NY Terminals to lease the Premises (the “Premises Lease”), D) a Manufacturing and Distribution Agreement with Full Circle (the “M&D Agreement”),  GlyEco has entered into E) a guarantee of the Equipment Lease and of the Premises Lease (the “Lease Guarantees”), E) a consulting agreement with Ioia (the “Consulting Agreement), and F) an agreement with Ioia whereby Ioia will become a member of the Board of Directors of GlyEco (the “Board Agreement”), and Ioia has entered into to a non-compete agreement with GAC #4 (the “Non-Compete Agreement”), all of which, together all other warranties, representations, certificates, documents, and agreements executed or made by either GAC #4 or GlyEco, individually are referred to as a “Transaction Document” and collectively as the “Transaction Documents.”

	2.	AGREEMENT        

 

2.1.   NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and Consultant’s engagement and/or continued engagement with the Company and the compensation now or hereafter paid by the Company to Consultant, and intending to be legally bound hereby, the Company and Consultant hereby agree as follows:

3.   Engagement.  Subject to the terms and conditions of this Consulting Agreement, the Company hereby engages Consultant, and Consultant hereby accepts such engagement, as an independent contractor of the Company to perform the duties set forth on Exhibit A to this Consulting Agreement to the satisfaction of the Company (the “Services”).  Consultant will report directly to, and perform the Services under this Consulting Agreement to the satisfaction of, the Chief Executive Officer of the Company.  All of the Services to be performed by Consultant under this Consulting Agreement will be performed solely by Consultant.  In connection with Consultant’s engagement hereunder, Consultant will be reasonably available for travel from time-to-time, as such travel may be requested by the Chief Executive Officer of the Company from time-to-time.

 

  

Page 1 of 14

  

4.   Services.  Consultant will perform the duties and services set forth on Exhibit A attached to this Consulting Agreement and such other duties and services as mutually agreed upon in writing between the Company and Consultant from time-to-time (collectively, the “Services”) during the Term (as defined below) and as directed by the Chief Executive Officer of the Company from time-to-time.  Consultant will make commercially reasonable efforts to perform the Services.

5.   Compensation.

5.1.   Compensation.  In consideration for full performance of the Services during the Term (as defined below), the Company will pay to Consultant compensation at the rate set forth on Exhibit B attached to this Consulting Agreement (the “Compensation”).  Payments of the Compensation will be made in monthly installments or in such other periodic installments upon which the Company and Consultant will mutually agree.

5.2.   Reimbursement.  The Company will reimburse Consultant for the full amount of all travel expenses and other ordinary and necessary business expenses incurred by Consultant in connection with Consultant’s performance of the Services during the Term and permitted to be expensed as business expenses under GAAP; provided, however, that Consultant will not incur such expenses in an amount in excess of $1,500.00 during any month without written authorization from the Company’s Chief Executive Officer.  To obtain reimbursement, Consultant will submit to the Company receipts, bills, or sales slips for the expenses incurred.  Reimbursements will be made by the Company on a monthly basis and within 45 days of presentation by Consultant of evidence of the expenses incurred.

 

6.   Term of Engagement.  Subject to the termination provisions provided in Section G of this Consulting Agreement, the Term of this Consulting Agreement will commence on the “Start Date” set forth on Exhibit B attached to this Consulting Agreement, and will expire on the fifth annual anniversary of the Start Date (the “Initial Term”).  The Company may, at its option and upon written notice to Consultant, extend the term of this Consulting Agreement for one additional year beyond the Initial Term (the “Extension Term” and, together with the Initial Term, the “Term”).

7.   Termination.  Notwithstanding any other term or condition of this Consulting Agreement, this Consulting Agreement and the obligations of the Parties hereunder may be terminated prior to the expiration of the Term as follows:

 

7.1.   Termination For Cause.  This Consulting Agreement may be terminated by the Company immediately for Cause.  Upon termination for Cause, the Company will pay to Consultant: (i) accrued but unpaid Compensation earned up to the date of termination; and (ii) expenses incurred by Consultant prior to the date of termination and approved by the Company pursuant to Section E above.  Consultant will not be paid any other compensation or reimbursement of any kind.  For purposes of this Consulting Agreement, “Cause” will mean: (a) Consultant’s death; (b) Consultant’s failure to perform the Services or the other obligations of Consultant under this Consulting Agreement due to physical or mental incapacity for a period in excess of two uninterrupted, consecutive months during the Term; (c) Consultant’s failure to perform the Services or the other obligations of Consultant under this Consulting Agreement, which failure, if capable of being cured, is not cured within 10 days after Consultant’s receipt of a detailed written notice from the Company, precisely describing such failure; (d) Consultant’s violation of any law involving moral turpitude, dishonesty, or fraud; (e) any act of dishonesty or willful misconduct by Consultant in the performance of the Services; (f) Consultant’s refusal to perform the Services pursuant to the reasonable written instructions from the Company’s Chief Executive Officer; (g) Consultant’s breach of any representation, warranty, condition, agreement, or covenant contained in this Consulting Agreement or immediately upon an Event of Default by Consultant, Full Circle, or NY Terminals under any Transaction Document; or (h) the failure of any representation, warranty, or other statement by Consultant contained in this Consulting Agreement, to be materially true and correct.

 

  

Page 2 of 14

  

7.2.   Termination By Consultant; Notice.  Consultant may terminate this Consulting Agreement at any time without Cause, or for any reason or for no reason, upon 30 days written notice provided to the Company, or immediately upon an Event of Default by GAC #4 or the Company in or under any Transaction Document.  Consultant will, in good faith, perform all reasonable actions to assist the Company with all necessary or appropriate transition needs during such 30-day period.  Upon termination by Consultant pursuant to this Section, the Company will pay to Consultant: (i) the applicable accrued but unpaid Compensation earned up to the date of termination; and (ii) expenses incurred by Consultant prior to the date of termination and approved by the Company pursuant to Section E above.  Consultant will not be paid any other compensation or reimbursement of any kind.

7.3.   Non-Retention of Materials.  Upon the termination or expiration of this Consulting Agreement, Consultant will promptly deliver to the Company, and not keep or deliver to any Person (as defined below), all manuals, letters, notes, notebooks, price lists, customer lists, reports, and copies thereof, and all written materials of a confidential or proprietary nature relating to the Company and its Business and Assets (including, without limitation, the business and assets of any subsidiary of the Company), which are in Consultant’s possession or under Consultant’s control solely as a result of performing the Services pursuant to this Consulting Agreement.  Consultant will not to retain any copies, duplications, reproductions, or excerpts of the foregoing materials.  For purposes of this Consulting Agreement, “Person” means an individual, partnership, corporation, business trust, limited liability company, limited liability partnership, joint stock company, trust, unincorporated association, joint venture, or other federal, country, or state, or local court, administrative agency, or commission, or any other governmental authority or instrumentality, whether domestic or foreign.

7.4.   Confidentiality.  Subject to the limitation, terms, and provisions set forth in the IP Assignment, Consultant (i) will not disclose any Confidential Information (as defined by the M&D Agreement) of the Company, except as compelled by law pursuant to a final order of a court of competent jurisdiction, (ii) will not use any Confidential Information for any reason or purpose other than to perform the Services rendered to Company under this Agreement, and (iii) will take all reasonably necessary and appropriate efforts to safeguard the Confidential Information from disclosure to any person or entity other than Company and its subsidiaries.

7.5.   Inventions and Developments.  For and in consideration of this Consulting Agreement, simultaneously with the execution of this Consulting Agreement, Consultant will execute and deliver to the Company an Invention Assignment Agreement (the “Invention Agreement”), in the form attached as Exhibit C to this Consulting Agreement.  The effectiveness of this Consulting Agreement is conditioned upon full and complete compliance by Consultant of this Section I and the terms and conditions of the Invention Agreement.

 

8.   Relationship of the Parties.

 

8.1.   Independent Contractor; Other Activities of Consultant.  Consultant is an independent contractor.  Neither Consultant nor any Person acting under the terms of this Consulting Agreement will be deemed to be acting as an agent or employee of the Company or any of its subsidiaries or any customer of the Company or any of its subsidiaries for any purpose whatsoever.  The conduct and control of Consultant’s performance of the Services hereunder will be solely with Consultant or such other Persons who, by custom in the industry, are responsible for supervising and directing Consultant’s Services.  The Company will not be responsible for determining Consultant’s work routine, work schedule, or the amount of time Consultant is to spend on performing the Services, except that Consultant is expected to make commercially reasonable efforts to perform the Services.  Except as otherwise provided in this Consulting Agreement, Consultant will not be entitled to any of the benefits that the Company provides for its own employees.  Consultant will be solely responsible for all taxes, unemployment or workers compensation, or any other insurance, and Consultant will be responsible for any withholding which is required to be paid or made on all sums paid to Consultant under this Consulting Agreement.

  

Page 3 of 14

  

 

8.2.   No Partnership or Joint Venture Relationship.  Nothing contained in this Consulting Agreement will create or be deemed to create any partnership, employment relationship, joint venture, franchise, or agency between the Company and Consultant.  Neither the Company nor Consultant will have the power or authority to obligate or bind the other in any manner whatsoever, except as specifically provided in this Consulting Agreement.

9.   Representation.  Consultant represents that he will make commercially reasonable efforts to perform the Services in a professional and workmanlike manner and that none of the Services or any part of this Consulting Agreement is or will be inconsistent with any obligation Consultant may have to any other Person, except with regard to Consultant’s position as a principal and employee of, and provider of services to, Full Circle, NY Terminals, and its or their subsidiary, sister, or related companies or entities, or any other company or entity owned or controlled by Consultant.

10.   Injunctive Relief.  In the event that Consultant violates any of the restrictions contained in this Consulting Agreement, the Company will suffer irreparable harm for which an adequate remedy at law does not exist and, therefore, the Company will be entitled to preliminary and permanent injunctive relief, as well as damages and an equitable accounting of all earnings, profits, and other benefits arising from such violation, which right will be cumulative and in addition to any other rights or remedies to which the Company may be entitled.

11.   Notices

 

11.1.   Proper Manner and Addresses.Proper Manner and Addresses.  All notices, requests, approvals, consents, demands, and other communication (collectively “Notices”) provided for in this Consulting Agreement shall be in writing and shall be sent by certified mail, return receipt requested, postage prepaid or by nationally recognized overnight delivery courier service, addressed:

	
  

	
AS TO GLYECO:

	
GlyEco, Inc.

Attn: John d’Arc Lorenz, II

4802 E. Ray Road, #23-196

Phoenix, Arizona 85044

	
  

	
AS TO IOIA:

	
Joseph A. Ioia

229 Arlington Avenue

Staten Island, New York 10303

	
  

	
with a copy to:

	
Douglas Ehrenworth, Esq.

SPECTOR & EHRENWORTH, P.C.

30 Columbia Turnpike, Suite 202

Florham Park, New Jersey 07932-2261

[(973) 593-4800 x136/ FAX (973) 593-4848]

e-mail: dehrenworth@selawfirm.com

or such other address or addresses within the United States as the Parties may designate to each other in writing from time to time.

 

  

Page 4 of 14

  

11.2.   Notice Deemed GivenNotice Deemed Given Notices shall be deemed to be given on the date and at time that they are personally delivered on a business day, or on the second business day after deposit in any United Stated Post Office or on the first business day after deposit with a nationally recognized overnight delivery courier service, but shall not be effective unless received.  The date of such deposit shall be deemed to be the date stamped on the envelope or wrapper of the notice by any General or Branch Office of the United States Post Office or on the date such nationally recognized overnight delivery courier service records such deposit for its business purposes.

12.   Attorneys’ Fees.  If any Party finds it necessary to employ legal counsel or to bring an action at law or to commence other proceedings against the other Party to enforce any of the terms or conditions of this Consulting Agreement, the prevailing Party will pay the other Party’s legal costs and expenses incurred in any such action or other proceeding.

13.   Indemnification

 

13.1.   In the event that Consultant becomes involved in any capacity (whether as a party, a witness, or otherwise) in any actual or threatened lawsuit, action, claim, proceeding, or investigation relating to or arising out of, or claimed to be related to or arising out of, this Consulting Agreement, the Services to be provided hereunder by Consultant, or the relationship of Consultant to the Company or any of its subsidiary, sister or related companies, the Company shall indemnify Consultant for and hold harmless Consultant from all judgments, demands, costs, charges, fines, penalties, and other expenses whatsoever incidental to same, including, but not limited to, reasonable attorneys’ fees and costs for counsel of Consultant’s selection and choice, including experts’ fees and costs, of litigation, proceedings, or investigations (all being “Consultant’s Legal Costs”).

 

13.2.   If Consultant makes a payment or payments in connection with Consultant’s Legal Costs, the Company promptly shall reimburse Consultant fully for such payment or payments within ten (10) business days of the date that Consultant notifies the Company in writing that he has made such payment.

13.3.   Notwithstanding Section O(a) above, Consultant will indemnify Company from and against all judgments, demands, costs, charges, fines, penalties, and other expenses whatsoever incidental to same, including, but not limited to, reasonable attorneys’ fees and costs for counsel of Company’s selection and choice, including experts’ fees and costs, of litigation, proceedings, or investigations (all being “Company’s Legal Costs”), incurred by the Company arising out of or relating to (a) a material breach of any term or condition of this Consulting Agreement by Consultant or any material representation of Consultant in this Consulting Agreement; or (b) Consultant’s failure to pay any employment related taxes when due or to properly withhold such taxes.

13.4.   If Company makes a payment or payments in connection with Company’s Legal Costs, Consultant shall promptly reimburse Company for such payment or payments within ten (10) business days of the date that Company notifies the Consultant in writing that it has made such payment.

14.   Default.  Any Event of Default by GAC #4 or the Company under any Transaction Document will be deemed a breach by the Company of this Consulting Agreement.   Conversely, any Event of Default by Consultant, Full Circle, or NY Terminals under any Transaction Document will be deemed a breach by the Consultant of this Consulting Agreement.

15.   Assignment.  This Consulting Agreement may not be assigned by Consultant.  The Company may assign this Consulting Agreement, in whole or in part, to any Person deriving title from the Company to the Company’s assets and business; provided, however, that if the Company will sell, transfer, or assign less than all of its interest in the Company’s assets and business, the obligations of Consultant under this Consulting Agreement will continue both as to the Company and as to any successor(s) in interest of the assigned portion of the Company’s assets and business.

 

  

Page 5 of 14

  

 

16.   No Guarantee of Business Success.  Consultant agrees and acknowledges that Consultant has had the opportunity to ask questions regarding the Company and has received satisfactory answers to such questions and such other additional information as Consultant has desired before entering into this Consulting Agreement.  Consultant further agrees and acknowledges that the industry in which the Company operates is highly competitive, that many of the Company’s competitors have substantially greater financial, technical, marketing, and sales resources than the Company, that there is no guarantee of the Company’s success, either financially or otherwise, and that no representation to the contrary has been made to Consultant.

17.   Amendment.  This Consulting Agreement may not be modified or amended, except by an agreement in writing signed by Consultant and the Company.

18.   Construction and Miscellaneous Provisions

 

18.1.   Incorporation of Recitals. The Exhibits attached to this Consulting Agreement and Recitals set forth above are true and correct and are incorporated into this Consulting Agreement as if repeated at length.

 

18.2.   Transaction Documents. This Consulting Agreement and the Transaction Documents are in pari materia.

 

18.3.   Definitions Any capitalized term not specifically defined in this Consulting Agreement shall have the definition and meaning defined in the Transaction Documents.

 

18.4.   Entire Agreement. This Consulting Agreement contains the entire agreement of the Parties relating to the subject matter hereof, and no agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by the Parties that are not expressly set forth herein.

 

18.5.   Waiver. No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

 

18.6.   Grammatical Changes; Section Captions. The necessary grammatical changes required to make the provisions of this Consulting Agreement apply in the plural sense where there is more than one Party, and to entities, corporations, associations, partnerships, and individuals, males or females, shall in all instances be assumed as though in each case fully expressed.  The captions of the Sections of this Consulting Agreement are inserted only for convenience of reference and shall not be construed as defining or limiting the scope or intent of any provision hereof.

 

18.7.   Agreement Not to be Construed Against the Drafter. The Parties agree that the rule of construction that a contract be construed against the drafter shall not be applied in interpreting this Consulting Agreement.

 

18.8.   Counterparts; Electronic Signature; Date of Agreement.  This Consulting Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Executed counterparts exchanged by facsimile or other form of electronic transmission shall be effective as if the same were original executed counterparts. The date of this Consulting Agreement shall be the date set forth on the first page hereof, which shall be the date that Ioia executes this Consulting Agreement.

 

  

Page 6 of 14

  

 

18.9.   Invalid Provisions; Severability.  The invalidity or unenforceability of any covenant, condition, or provision hereof shall not affect or impair the validity or enforceability of any other covenants, conditions, or provisions hereof.

 

18.10.   Blue-Penciling.  If any court construes any provision of this Consulting Agreement, or any part thereof, to be unenforceable because of the extent, scope or duration of such provision or the area covered thereby, the  extent, scope, duration or area of such provision shall be reduced and, in its reduced form, such provision shall then be enforceable and shall be enforced.

 

18.11.   Governing Law.  This Consulting Agreement shall be governed and controlled exclusively by the provisions hereof and by the laws of the State of New Jersey.  The Parties have relied upon New Jersey law in negotiating this Consulting Agreement, and it expressly is agreed that this Consulting Agreement shall be governed and construed in accordance with the laws of the State of New Jersey applicable to agreements made and to be performed entirely within such State.

 

18.12.   Exclusive Jurisdiction. The Parties irrevocably and unconditionally agree that exclusive jurisdiction for all claims, demands, actions, or causes of action arising out of this Consulting Agreement shall be in the courts of the State of New Jersey.  The Parties consent to the exclusive jurisdiction of the courts of the State of New Jersey in any such suit, and they waive any objection to the venue of any such suit in any such courts.

 

18.13.   Successors And Assigns.  The terms, covenants, conditions, provisions, and agreements in this Consulting Agreement shall extend to and be binding upon and inure to the benefit of the Parties, their successors and assigns.

 

18.14.   WAIVER OF JURY TRIAL THE PARTIES, HAVING HAD A FULL AND ADEQUATE OPPORTUNITY TO CONFER WITH ATTORNEYS OF THEIR CHOICE AND UPON ADVICE OF THEIR RESPECTIVE ATTORNEYS, HEREBY KNOWINGLY, INTENTIONALLY, VOLUNTARILY, EXPRESSLY, AND MUTUALLY WAIVE ANY RIGHT TO TRIAL BY JURY, TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE, OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS CONSULTING AGREEMENT, OR (B) IN ANY WAY CONNECTED WITH OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO, WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.  EACH PARTY ALSO HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY A NEW JERSEY STATE COURT OF COMPETENT JURISDICTION, SITTING WITHOUT A JURY, AND THAT ANY PARTY TO THIS  CONSULTING AGREEMENT MAY FILE AN ORIGINAL OR COPY OF THIS CONSULTING AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO A TRIAL BY JURY. THE PARTIES ACKNOWLEDGE THE IMPORTANCE OF THIS RIGHT AND MAKE A KNOWING WAIVER THEREOF IN CONSIDERATION OF THE WILLINGNESS OF THE OTHER TO ENTER INTO THIS  CONSULTING AGREEMENT.

 

18.15.   CONSPICUOUSNESS THE PARTIES ACKNOWLEDGE THAT THE PROVISIONS OF THIS CONSULTING AGREEMENT THAT ARE PRINTED IN THE SAME MANNER AS THIS SECTION ARE CONSPICUOUS.

 

  

Page 7 of 14

  

IN WITNESS WHEREOF, the Parties have caused this Consulting Agreement to be executed as a sealed instrument as of the day and year first above written.

	
  

	
ATTEST:

_______________________

Name: Joseph A. Ioia

GlyEco, Inc.

_______________________

Name: John d’Arc Lorenz, II

Title: Chief Executive Officer

 

 

  

Page 8 of 14

  

 

EXHIBIT A

Services

Consultant will perform the following Services as requested by the Company and its subsidiary entities, from time-to-time:

 

 

Assist in the capture of feedstock;

Manage relationships with existing feedstock suppliers and off-take customers;

Provide business and strategic advice as requested by the Company;

Utilize contacts to help grow the business of the Company and its subsidiaries;

Assist in providing tours and audits of the Premises, as defined in the Premises Lease, as requested, provided Consultant otherwise is available and at least 72 hours notice of same is provided to Consultant; and

Assist with mergers and acquisitions, which includes making referrals and introductions, speaking with various merger candidates, and providing tours of the Premises to interested merger candidates, as requested, provided Consultant otherwise is available and at least 72 hours notice of same is provided to Consultant.

  

Page 9 of 14

  

EXHIBIT B

Start Date and Compensation

1.   Start Date:   The Closing Date under the Transaction Documents.

2.           Compensation:  Consultant will be compensated based on the number of Finished (hereinafter defined) gallons of glycol produced pursuant to the Manufacturing and Distribution Agreement, as follows:

 

 

$0.1125 per gallon for the first 1 million gallons per calendar year;

$0.0875 per gallon for each gallon greater than 1 million gallons up to 4 million gallons per calendar year; and

$0.0675 per gallon for each gallon greater than 4 million gallons per calendar year.

 

 

“Finished” means salable recycled glycol produced but not necessarily sold.

 

  

Page 10 of 14

  

 

EXHIBIT C

INVENTION ASSIGNMENT AGREEMENT

This INVENTION ASSIGNMENT AGREEMENT (the “Agreement”) is entered into as of December __, 2012 (the “Effective Date”), by and between GLYECO, INC., a Nevada corporation (the “Company”), JOSEPH A. IOIA, an individual (“Consultant”).

RECITALS

 

A.           Consultant and the Company are parties to that certain Consulting Agreement, dated as of the same date as this Agreement (the “Consulting Agreement”).

 

B.           As a condition to and in consideration for entering into the Consulting Agreement, the parties hereto are entering into this Agreement.

AGREEMENTS

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and Consultant’s engagement and/or continued engagement with the Company and the compensation now or hereafter paid by the Company to Consultant, and intending to be legally bound hereby, Consultant and the Company hereby agree as follows:

1.  Ownership.

(a)             Except for the Prior Inventions identified on Schedule 1, Consultant agrees and acknowledges that, subject to the limitation, terms, and provisions set forth in the IP Assignment referred to in the Consulting Agreement of which this Invention Agreement is a part, all discoveries, concepts, and ideas, including, without limitation, improvements, processes, know-how, methods, apparatuses and formulae, and any notes, records, drawings, and designs related thereto with respect to re-manufacturing glycol (collectively, the “Inventions”), whether patentable or copyrightable (or in any way protectable as intellectual property) which are conceived, made, or discovered by Consultant, solely or in collaboration with others, or which become known to Consultant, by means of any undertaking, investigation, or experiment arising out of or relating to Consultant’s responsibilities as a consultant of the Company during the period of this Agreement are the sole property of the Company.  In addition, any Inventions which constitute copyrightable subject matter are “works made for hire” as that term is defined in the United States Copyright Act.  Consultant will assign (or cause to be assigned), and hereby do assign fully to the Company, all Inventions and any copyrights, patents, moral rights, trademarks, or other intellectual property rights relating thereto.

(b)             Consultant will assist the Company, or its designee, at the Company’s expense, in every proper way to obtain, secure, maintain, extend, and enforce the Company’s rights in the Inventions and any copyrights, patents, moral rights, trademarks, or other intellectual property rights relating thereto in any and all countries, including, without limitation, the disclosure to the Company of all pertinent information and data with respect to the Inventions, the execution of all applications, specifications, oaths, assignments, and all other instruments which the Company will deem necessary or advisable in order to apply for and obtain, secure, maintain, extend, and enforce such rights and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive right, title, and interest in and to the Inventions, and any copyrights, patents, moral rights, trademarks, or other intellectual property rights relating thereto.  Consultant’s obligation to execute, or cause to be executed, when it is in Consultant’s power to do so, any such instrument or papers will continue after the termination of this Agreement.

 

  

Page 11 of 14

  

(c)             If the Company is unable, because of Consultant’s unavailability, mental or physical incapacity, or for any other reason, to secure Consultant’s signature to apply for or to pursue any application for any United States or foreign patents or copyright or trademark registrations covering the Inventions assigned to the Company above, then Consultant hereby irrevocably designates and appoints the Company, and its duly authorized officers and agents, as Consultant’s agent and attorney-in-fact, to act for and in Consultant’s behalf and stead, to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights, trademarks, proprietary rights, and similar protections with the same legal force and effect as if executed by Consultant.

(d)            Subject to the limitation, terms, and provisions set forth in the IP Assignment referred to in the Consulting Agreement of which this Invention Agreement is a part and subject to the rights of Consultant as set forth in such IP Assignment, all of which control over this Invention Agreement, Consultant agrees that, except for the Prior Inventions identified on Schedule 1, if in the course of performing his responsibilities as a consultant of the Company, Consultant incorporates any other prior inventions, improvements, developments, concepts, discoveries, or other proprietary information owned by Consultant or in which Consultant has an interest prior to the Effective Date, as exhaustively specified on Schedule 1 attached hereto (collectively, the “Prior Inventions”), into any Invention, Consultant hereby grants the Company a nonexclusive royalty-free, perpetual, irrevocable, worldwide license to make, have made, modify, use, sell, and sub-license such item as part of or in connection with such Invention, whether or not such Invention is wholly conceived by Consultant.  Consultant hereby represents to the Company that, to the best of his knowledge, Consultant has listed on Schedule 1 attached hereto all Prior Inventions of Consultant that directly or indirectly relate to any product or service offered by the Company or any of its subsidiaries.  If Schedule 1 is left blank, Consultant agrees that Consultant does not own or have any interest in any Prior Inventions.

2.           Conflicting Obligations.  Consultant represents, to the best of his knowledge, that Consultant has no outstanding agreement or obligation that is in conflict with any of the terms or conditions of this Agreement or that would preclude Consultant from complying with the terms or conditions of this Agreement, except as set forth in the IP Assignment.  Consultant further represents that Consultant will not enter into any such conflicting agreement with any third parties prior to the Termination Date (as defined below) nor engage in any other engagement or employment, as the case may be, which may be in conflict with the terms or conditions of this Agreement or the Consulting Agreement.

3.          Term and Termination.  Upon the date of termination of the Consulting Agreement for any reason (the “Termination Date”), all rights and duties of the parties specified in this Agreement toward each other will cease, except Section 1 (Ownership), Section 4 (Equitable Relief), and Section 7 (Incorporation of Miscellaneous Provisions), which will survive such termination.

4.           Equitable Relief.  The parties hereto agree and acknowledge that monetary damages alone would be inadequate to redress the Company’s damages from any breach of the representations set forth in Sections 1 and 2 of this Agreement.  Accordingly, the parties hereto agree and acknowledge that if Consultant breaches Section 1 or 2 of this Agreement, the Company will suffer irreparable harm for which an adequate monetary remedy does not exist and a remedy at law is inadequate; therefore, the Company has, in addition to any other right or remedy available, the right to obtain from any court of competent jurisdiction an injunction restraining such breach or threatened breach and specific performance of any such provision. The parties hereto agree and acknowledge that no bond or other security will be required in obtaining such equitable relief.

5.           Entire Agreement.  This Agreement embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings between the parties hereto relating to the subject matter hereof.

 

  

Page 12 of 14

  

6.           No Guarantee of Business Success.  Consultant agrees and acknowledges that Consultant has had the opportunity to ask questions regarding the Company, has received satisfactory answers to such questions, and such other additional information as Consultant has desired before entering into this Agreement.  Consultant further agrees and acknowledges that the industry in which the Company operates is highly competitive, that many of the Company’s competitors have substantially greater financial, technical, marketing, and sales resources than the Company, that there is no guarantee of the Company’s success, either financially or otherwise, and that no representation to the contrary has been made to Consultant.

7.           Incorporation of Miscellaneous Provisions.  The parties hereto agree to be bound by and incorporate into this Agreement by this reference all of the miscellaneous terms and conditions set forth in Section T of the Consulting Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Invention Assignment Agreement as of the Effective Date.

 

                                                                                   CONSULTANT:

                                                                        _______________________

By: Joseph A. Ioia, an individual

Address:

Joseph A. Ioia

229 Arlington Avenue

Staten Island, New York 10303

STATE OF ___________                )

               )  ss.

County _____________                  )

 

The foregoing instrument was acknowledged before me this ___ day of _________, 2012, by Joseph A. Ioia.

 

                                                                               

 Notary Public

 Notary Stamp

 

Company:

GlyEco, Inc., a Nevada corporation

_______________________

By: John d’Arc Lorenz II, Chief Executive Officer

Address:

GlyEco, Inc.

Attn: John d’Arc Lorenz II, Chief Executive Officer

10429 South 51st Street

Phoenix, Arizona 85044

Fax: (_____) _____-_________

STATE OF ___________                 )

)  ss.

County _____________                   )

The foregoing instrument was acknowledged before me this ___ day of _________, 2012, by John d’Arc Lorenz II, as the Chief Executive Officer of GlyEco, Inc.

 

                                                                               

 Notary Public

 Notary Stamp

  

Page 13 of 14

  

 

SCHEDULE 1

 

PRIOR INVENTIONS

The following is an exhaustive list of all Prior Inventions of Consultant.  If this Schedule 1 is left blank, Consultant agrees that Consultant does not own or have any interest in any Prior Inventions.

1.             All intellectual property which is being assigned by Consultant to GAC #4 pursuant to that certain Assignment of Intellectual Property With License and Sublicense by and between Joseph A.  Ioia, as Assignor, Licensee and Sub-licensee and GlyEco Acquisition Corp. #4, as Assignee.

 

 

2.

 

 

3.

 

 

4.

 

 

5.

 

 

6.

 

7.

 

 

8.

 

 

9.

 

 

10.

 

 

_____ Additional sheet(s) attached.

CONSULTANT:

By:                                                                   

      Joseph A. Ioia, an individual

Dated: December __, 2012.

 

  

Page 14 of 14EX-4.2

 Exhibit 4.2 

BERKSHIRE HATHAWAY FINANCE CORPORATION 

OFFICERS’ CERTIFICATE 

ESTABLISHING THE TERMS OF THE 

FLOATING RATE SENIOR NOTES DUE JANUARY 13, 2017 

January 15, 2015 
 The
undersigned, Marc D. Hamburg and Robert P. Reeson, do hereby certify pursuant to Section 3.01 of that certain Indenture, dated as of February 1, 2010 (the “Indenture”), among Berkshire Hathaway Finance Corporation (the
“Corporation”), Berkshire Hathaway Inc., as Guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee, that: 

1. They are (i) the President and (ii) the Assistant Secretary, respectively, of the Corporation. 

2. As such officers, they are authorized to execute and deliver this Officers’ Certificate on behalf of the Corporation. 

3. Attached hereto as Annex A is a true and correct copy of a specimen note representing the Corporation’s Floating Rate Senior Notes due
January 13, 2017 (the “Notes”). 
 4. The Notes are a separate series of Securities under the Indenture. The form of
Notes attached hereto as Annex A is incorporated herein by reference. 
 5. The title of the Notes shall be the “Floating Rate Senior
Notes due January 13, 2017.” The Notes will be the Corporation’s unsecured senior obligations, will rank pari passu in right of payment with all of the Corporation’s unsubordinated, unsecured indebtedness and will be
senior in right of payment to all of the Corporation’s subordinated indebtedness. 
 6. The Notes shall be issued at the initial
offering price of 100% of the principal amount thereof. 
 7. The Corporation will initially issue $400,000,000 aggregate principal amount of
Notes. The Corporation may issue additional Notes from time to time after the date hereof, and such Notes will be treated as part of the same series of which the Notes are a part for all purposes under the Indenture. 

8. All of the Corporation’s obligations under the Notes will be unconditionally and irrevocably guaranteed by Berkshire Hathaway Inc., as
Guarantor. The form of Guarantee is attached to the specimen Note attached hereto as Annex A, and is incorporated herein by reference. 
 9.
The principal amount of the Notes will mature on January 13, 2017. 
 10. The Notes are issuable in minimum denominations of $2,000 and
integral multiples of $1,000 in excess thereof. 

 11. Interest on the Notes will be computed on the basis of a 360 day year and the
actual number of days elapsed in each interest period. 
 12. The Notes will bear interest from January 15, 2015 at a rate per
annum equal to Three-Month LIBOR (Reuters Page LIBOR01) (“LIBOR”) (as determined quarterly, on the second London business day prior to the applicable Interest Payment Date (except that the initial Interest Determination Date (as defined in
the Notes) will be January 13, 2015) in accordance with the provisions of the Notes) plus 0.170%, payable quarterly in arrears on each January 13, April 13, July 13 and October 13, commencing on April 13,
2015, to the holders of record of the Notes at the close of business on the January 1, April 1, July 1 or October 1 (whether or not a Business Day), as the case may be, immediately preceding such
January 13, April 13, July 13 and October 13. 
 13. Payment of the principal of and premium, if any, and
interest on the Notes will be made at the office or agency of the Corporation maintained for that purpose in the City of New York, New York (or, if the Corporation does not maintain such office or agency, at the corporate trust office of the Trustee
in the City of New York or if the Trustee does not maintain an office in the City of New York, at the office of a Paying Agent in the City of New York), in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debt; provided, however, that at the option of the Corporation payments of principal, premium, if any, or interest may be made by check mailed to the address of the Person entitled thereto as
such address shall appear in the Security Register, subject to surrender at such office or agency, in the case of payments of principal and premium. 

14. The Notes will initially be issued in the form of one or more Global Securities. The Depository Trust Company shall serve as the Depositary
for such Global Securities. 
 15. The Notes shall be defeasible in whole or in part pursuant to the terms of the Indenture, including,
without limitation, Section 13.02 and Section 13.03 of the Indenture. 
 16. The Notes are not redeemable. 

All capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Indenture. 

[Remainder of page intentionally left blank.] 

 IN WITNESS WHEREOF, this Officers’ Certificate has been executed by the undersigned on the
Corporation’s behalf as of the date first written above. 
  

	
	 /s/ Marc D. Hamburg

	Name: Marc D. Hamburg
	Title: President
	
	 /s/ Robert P. Reeson

	Name: Robert P. Reeson
	Title: Assistant Secretary

 [Officer’s Certificate Establishing Floating Rate Notes due January 13, 2017] 

 Annex A 

Form of Floating Rate Senior Notes due January 13, 2017 

 THIS DEBT SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS DEBT SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS DEBT SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO BERKSHIRE HATHAWAY FINANCE CORPORATION OR ITS AGENT FOR REGISTRATION OR TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

 BERKSHIRE HATHAWAY FINANCE CORPORATION 

 
  

Floating Rate Senior Notes due January 13, 2017 

CUSIP: 084664 CC3 

ISIN: US084664CC39 
  

			
	No.	  	$                    
		  	 (as revised by the Schedule of Increases and

Decreases in Global Security attached hereto)

 BERKSHIRE HATHAWAY FINANCE CORPORATION, a corporation duly organized and existing under the laws of the State
of Delaware (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., the registered Holder hereof, the principal
sum of
                                        Dollars
($             ) (as revised by the Schedule of Increases and Decreases in Global Security attached hereto) on January 13, 2017 (the “Stated Maturity Date”), and to
pay interest thereon in arrears at a rate per annum equal to 0.42330% (the “Initial Interest Rate”) from, and including, January 15, 2015, to, but excluding, April 13, 2015, and thereafter, except as specified herein, at a rate
per annum equal to LIBOR (as determined on each Interest Determination Date in accordance with the provisions below under the heading “Determination of LIBOR”) plus 0.170% (the “Interest Rate”), until the principal hereof is paid
or made available for payment; provided that any principal, and any such installment of interest, which is overdue shall bear interest at the Interest Rate (as it shall be adjusted on each Interest Payment Date and to the extent that the
payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand. The Company will make payments of such interest quarterly in
arrears on January 13, April 13, July 13 and October 13 of each year (each, an “Interest Payment Date”), commencing on April 13, 2015, and on the Stated Maturity Date; provided, however,
that if an Interest Payment Date, other than the Stated Maturity Date, would fall on a day that is not a Business Day (as defined below), such Interest Payment Date will be postponed to the next Business Day and interest will accrue to but excluding
the date interest is paid. However, if the postponement would cause the day to fall in the next calendar month, such Interest Payment Date shall be the immediately preceding Business Day; provided, further, that if the Stated Maturity
Date falls on a day that is not a Business Day, payment of principal, premium, if any, and/or interest to be made on the Stated Maturity Date shall be made on the next Business Day with the same force and effect as if made on the Stated Maturity
Date (without any interest or other payment in respect of such delay). For purposes of this Debt Security, “Business Day” means any day other than a Saturday, Sunday or other day that, in the Borough of Manhattan, New York City, banking
institutions generally are authorized or obligated by law, regulation or executive order to close. “London Business Day” means any day on which dealings in deposits in U.S. Dollars are transacted in the London interbank market. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Debt Security (or one or more Predecessor Securities) is registered at the
close of business on each respective January 1, April 1, July 1 or October 1 immediately preceding such Interest Payment Date, whether or not a Business Day (each such date being referred to herein as a “Regular
Record Date”). Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Debt Security (or one or more
Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Debt Securities of this series not less than
10 days prior to such Special Record Date, 

 
or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Debt Securities of this series may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in such Indenture. 
 Payment of the principal of and interest on this Debt
Security will be made at the office or agency of the Company maintained for that purpose in the City of New York, New York (or, if the Company does not maintain such office or agency, at the corporate trust office of the Trustee in the City of New
York or if the Trustee does not maintain an office in the City of New York, at the office of a Paying Agent in the City of New York), in such coin or currency of the United States of America as at the time of payment is legal tender for payment of
public and private debt; provided, however, that at the option of the Company payments of principal or interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register,
subject to surrender at such office or agency, in the case of payments of principal. 
 The interest payable hereon on each Interest Payment
Date or the Stated Maturity Date, as the case may be, will include interest accrued from, and including, the most recent Interest Payment Date to which interest has been paid or duly provided for, or, if no interest has been paid or duly provided
for, from and including January 15, 2015, as the case may be, to, but excluding, such Interest Payment Date or the Stated Maturity Date, as the case may be (each, an “Interest Period”). Accrued interest on this Debt Security will be
calculated by multiplying the outstanding principal amount hereof by an accrued interest factor. Such accrued interest factor will be computed by adding the interest factors calculated for each day in the Interest Period for which accrued interest
is being paid. The interest factor for each such day is computed by dividing the Interest Rate applicable to such day by 360. The Interest Rate in effect on any Interest Payment Date will be the Interest Rate as reset in accordance herewith on that
date. The Interest Rate applicable to any other day is the Interest Rate as reset on the immediately preceding Interest Payment Date, or if none, the Initial Interest Rate. 

This Debt Security will bear interest at the Interest Rate (i.e. LIBOR plus 0.170%) by reference to LIBOR determined in accordance with the
provisions set forth below. Commencing with April 13, 2015 and thereafter on each succeeding Interest Payment Date specified above, the rate at which interest on this Debt Security is payable shall be reset as of each such Interest Payment
Date; provided, however, that the Interest Rate in effect for the period from, and including, January 15, 2015 to, but excluding, April 13, 2015 (i.e. the first Interest Payment Date) will be the Initial Interest Rate. 

Except as set forth in the immediately preceding paragraph, the Interest Rate applicable to an Interest Period commencing on any Interest
Payment Date will be determined by reference to LIBOR (determined in accordance with the provisions set forth below) as of the particular “Interest Determination Date” for such period, which will be the second London Business Day preceding
the related Interest Payment Date commencing such Interest Period. Notwithstanding the foregoing, the Interest Rate hereon shall in no event be higher than the maximum rate permitted by New York law as the same may be modified by United States law
of general application. 
 Subject to applicable provisions of law and except as specified herein, the Calculation Agent will, as of each
applicable Interest Determination Date, calculate the Interest Rate payable during each applicable Interest Period in accordance with the provisions specified below. 

Unless otherwise specified, all percentages resulting from any calculation of the rate of interest on this Debt Security will be rounded, if
necessary, to the nearest one hundred-thousandth of a percentage point, (with .000005% rounded up to .00001%), and all U.S. dollar amounts used in or resulting from such calculation on this Note will be rounded to the nearest cent (with one-half
cent rounded upward). 

 Determination of LIBOR. “LIBOR” as of each Interest Determination Date for each
applicable Interest Period will be the rate for deposits in U.S. dollars for a period of three months, commencing on the Interest Payment Date commencing the applicable Interest Period, that appears on the Reuters Screen LIBOR01 Page, or any
successor service, at approximately 11:00 a.m., London time, on that Interest Determination Date. The “Reuters Screen LIBOR01 Page” is the display designated as the Reuters screen “LIBOR01”, or such other page as may replace the
Reuters screen “LIBOR01” on that service or such other service or services as may be nominated for the purpose of displaying London interbank offered rates for U.S. dollar deposits by ICE Benchmark Administration Limited (“IBA”)
or its successor or such other entity assuming the responsibility of IBA or its successor in calculating the London interbank offered rate in the event IBA or its successor no longer does so. If no rate appears, then the Calculation Agent will
request the principal London offices of each of four major reference banks in the London interbank market, as selected and identified by the Company, to provide the Calculation Agent with its offered quotation for deposits in U.S. dollars for a
period of three months, commencing on the related Interest Payment Date commencing the applicable Interest Period, to prime banks in the London interbank market at approximately 11:00 a.m., London time, on that Interest Determination Date and in a
principal amount that is representative of a single transaction in U.S. dollars in that market at that time (the quotations referred to in this sentence shall be referred to as “Offered Quotations”). If at least two Offered Quotations are
provided, LIBOR determined by the Calculation Agent on that Interest Determination Date will be the arithmetic mean of those quotations. If fewer than two Offered Quotations are provided, LIBOR will be determined by the Calculation Agent for the
applicable Interest Period as the arithmetic mean of the rates quoted at approximately 11:00 a.m., New York City time, on that Interest Determination Date, by three major banks in New York City, as selected and identified by the Company, for loans
in U.S. dollars to leading European banks, for a period of three months, commencing on the applicable Interest Payment Date, and in a principal amount that is representative of a single transaction in U.S. dollars in that market at that time. If the
banks so selected and identified by the Company are not quoting as set forth above, LIBOR determined on that Interest Determination Date will remain LIBOR in effect on that Interest Determination Date. 

The Bank of New York Mellon Trust Company, N.A. will be the Calculation Agent. 

Reference is hereby made to the further provisions of this Debt Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Debt Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

							
	Dated: January 15, 2015	 		 	BERKSHIRE HATHAWAY FINANCE CORPORATION
				
		 		 	By:	 	  

		 		 	Name:	 	Marc D. Hamburg
		 		 	Title:	 	President

  

	
	Attest:
	
	  

	Name: Robert P. Reeson
	Title: Assistant Secretary

 [REVERSE OF DEBT SECURITY] 

This Debt Security is one of a duly authorized series of notes of the Company (herein called the “Debt Securities”), issued and to
be issued in one or more series under an Indenture, dated as of February 1, 2010 (herein called the “Base Indenture”, and as supplemented by the Officers’ Certificate dated January 15, 2015 with respect to this Debt
Security, together with the Base Indenture, called the “Indenture”), among the Company, as issuer, Berkshire Hathaway Inc., as guarantor (herein called the “Guarantor,” which term shall include any successor Guarantor under the
Indenture), and The Bank of New York Mellon Trust Company, N.A., as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantor, the Trustee and the Holders of the Debt Securities and of the terms upon which the Debt Securities are, and are to be, authenticated and
delivered. This Debt Security is one of the series designated on the face hereof, initially limited in aggregate principal amount to $400,000,000. The Company may at any time issue additional securities under the Indenture in unlimited amounts
having the same terms as the Debt Securities of a series, provided that no additional securities of a series may be issued if at the time of issuance an Event of Default has occurred and is continuing with respect to such series of securities. 

This Debt Security does not have the benefit of any sinking fund obligation. 

This Debt Security is not redeemable prior to the Stated Maturity Date. 

The Indenture contains provisions for defeasance at any time of the entire Indebtedness of this Debt Security or of certain restrictive
covenants and Events of Default with respect to this Debt Security, in each case upon compliance with certain conditions set forth in the Indenture. 

If an Event of Default with respect to the Debt Securities of this series shall occur and be continuing, the principal of the Debt Securities
of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the Guarantor and the rights of the Holders of the Debt Securities of each series and of Guarantees to be affected
under the Indenture at any time by the Company, the Guarantor and the Trustee with the consent of the Holders of not less than 50% in principal amount of the Debt Securities at the time Outstanding of each series to be affected (voting together as a
single class). The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Debt Securities of each series at the time Outstanding, on behalf of the Holders of all Debt Securities of such series,
to waive compliance by the Company and/or the Guarantor with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Debt Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Debt Security and of any Debt Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Debt Security. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Debt Security shall not
have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing
Event of Default with 

 
respect to the Debt Securities of this series, the Holders of at least 25% in principal amount of the Debt Securities of this series at the time Outstanding shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity or security reasonably satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal amount
of Debt Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Debt Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 

No reference herein to the Indenture and no provision of this Debt Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any interest on this Debt Security at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Debt Security is registrable in the
Security Register, upon surrender of this Debt Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Debt Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or the Holder’s attorney duly authorized in writing, and thereupon one or more new Debt
Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Indenture and this Debt Security are governed by the laws of the State of New York, without regard to conflicts of laws provisions
thereof. 
 The Debt Securities of this series are issuable in registered form without coupons in minimum denominations of $2,000 and
integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Debt Securities of this series are exchangeable for a like aggregate principal amount of Debt Securities of this
series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 
 No service charge
shall be made to a Holder for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Debt Security for registration of transfer, the Company, the Guarantor, the Trustee and any agent thereof may
treat the Person in whose name this Debt Security is registered as the owner hereof for all purposes, whether or not this Debt Security be overdue, and none of the Company, the Guarantor, the Trustee or any such agent shall be affected by notice to
the contrary. 
 Except in the limited circumstances described in Section 3.05 of the Indenture, the Debt Securities of this series
shall be issued in the form of one or more Global Securities and The Depository Trust Company shall be the Depositary for such Global Security or Securities. 

All terms used in this Debt Security which are not defined herein and are defined in the Indenture shall have the meanings assigned to them in
the Indenture. 

 GUARANTEE OF 

BERKSHIRE HATHAWAY INC. 

FOR VALUE RECEIVED, Berkshire Hathaway Inc., a Delaware corporation (the “Guarantor”), hereby absolutely, unconditionally and
irrevocably guarantees to the holders (the “Holders”) of any security authenticated and delivered (each a “Security”) by The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) under that certain
Indenture, dated as of February 1, 2010 (the “Indenture”), among the Trustee, the Guarantor and Berkshire Hathaway Finance Corporation, a Delaware corporation (“Issuer”), the full and prompt payment when due (whether at
stated maturity, by acceleration or otherwise) of all present and future payment obligations of the Issuer pursuant to the terms of such Security and/or the Indenture, whether direct or indirect, absolute or contingent, and whether for principal,
interest, fees, expenses, indemnification or otherwise (collectively, the “Obligations”). Nothing herein shall be deemed to guarantee any obligation of the Issuer other than the Obligations. Nothing herein shall be deemed to guarantee any
obligation of any person or entity other than the Issuer. 
 The Guarantor’s obligations hereunder shall be unconditional and absolute,
and shall not be released, discharged or otherwise affected by (i) the existence, validity, enforceability, perfection or extent of any collateral therefor, (ii) any lack of validity or enforceability of any provision of the Security or
the Indenture, (iii) any liquidation, bankruptcy, insolvency, reorganization or other similar proceeding affecting the Issuer or its assets, or (iv) any other circumstance relating to the Obligations that might otherwise constitute a legal
or equitable discharge of, or defense to, the Guarantor. The Guarantor agrees that the Holders and/or the Trustee may resort to the Guarantor, as primary obligor and not merely as surety, for payment of any of the Obligations whether or not the
Holders or the Trustee shall have proceeded against the Issuer or any other obligor principally or secondarily obligated with respect to any of the Obligations. Neither the Holders nor the Trustee shall be obligated to file any claim relating to any
of the Obligations in the event that the Issuer becomes subject to a bankruptcy, reorganization or similar proceeding, and the failure of the Holders or the Trustee to so file shall not affect the Guarantor’s obligations hereunder. In the event
that any payment to the Holders by the Issuer in respect of any Obligations is rescinded or must otherwise be returned for any reason whatsoever, the Guarantor shall remain liable hereunder with respect to such Obligations as if such payment had not
been made. 
 The Guarantor agrees that, subject to the Indenture, the Holders and/or the Trustee may at any time and from time to time,
either before or after the maturity thereof, without notice to or further consent of the Guarantor, extend the time of payment of, exchange or surrender any collateral for, or renew any of the Obligations, and may also make any agreement with the
Issuer or with any other party to or person liable on any of the Obligations or interested therein, for the extension, renewal, payment, compromise, discharge or release thereof, in whole or in part, or for any modification of the terms thereof or
of any agreement between the Holders, the Trustee and the Issuer or any such other party or person, and that none of the foregoing shall in any way impair or affect this Guarantee. 

The Guarantor hereby unconditionally and irrevocably waives, to the fullest extent permitted by law, (a) notice of the acceptance of this
Guarantee and of the Obligations, presentment, demand for payment, notice of dishonor and protest, (b) any requirement that any Holder exhaust any right or take any action against the Issuer, and (c) any right to revoke this Guarantee.

 The Guarantor agrees to pay on demand all fees and out-of-pocket expenses incurred by the Holders
or the Trustee in any way relating to the enforcement or protection of the rights of the Holders and/or the Trustee hereunder. 
 Upon
payment of any of the Obligations, the Guarantor shall be subrogated to the rights of the Holders and/or the Trustee against the Issuer with respect to such Obligations, and the Holders and the Trustee agree to take such steps, at the
Guarantor’s expense, as the Guarantor may reasonably request to implement such subrogation; provided, however, that the Guarantor shall not be entitled to enforce, or to receive any payments arising out of or based upon, such right of
subrogation during any period in which any amount payable by the Issuer under the Security or the Indenture is overdue or unpaid. 
 No
failure on the part of the Holders or the Trustee to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by the Holders or the Trustee of any right,
remedy or power hereunder preclude any other or future exercise of any right, remedy or power. Each and every right, remedy and power hereby granted to the Holders or the Trustee or allowed any of them by law or other agreement shall be cumulative
and not exclusive of any other, and may be exercised by the Holders or the Trustee at any time or from time to time. 
 The Guarantor hereby
represents and warrants that: 
 (a) the Guarantor is duly organized, validly existing and in good standing as a corporation under the laws of the State of
Delaware and has full corporate power to execute, deliver and perform this Guarantee; 
 (b) the execution, delivery and performance of this Guarantee have
been and remain duly authorized by all necessary corporate action and do not contravene any provision of the Guarantor’s certificate of incorporation or by-laws, as amended to date, or any law, regulation, rule, decree, order, judgment or
contractual restriction binding on the Guarantor or its assets; 
 (c) all consents, licenses, clearances, authorizations and approvals of, and registrations
and declarations with, any governmental authority or regulatory body necessary for the due execution, delivery and performance of this Guarantee have been obtained and remain in full force and effect and all conditions thereof have been duly
complied with, and no other action by, and no notice to or filing with, any governmental authority or regulatory body is required in connection with the execution, delivery or performance of this Guarantee; 

(d) this Guarantee constitutes a legal, valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its terms, subject
to bankruptcy, insolvency, reorganization, moratorium and other laws of general applicability relating to or affecting creditors’ rights and to general equity principles; and 

(e) there are no actions, suits or arbitration proceedings pending or, to the knowledge of the Guarantor, threatened against it, at law or in equity, which,
individually or in the aggregate, if adversely determined, would materially adversely affect the financial condition of the Guarantor or materially impair its ability to perform its obligations under this Guarantee. 

The Guarantor may not assign its obligations hereunder to any person (except as permitted by the Indenture) without the prior written consent
of the Holders or the Trustee. 

 All payments by the Guarantor to the Holders or the Trustee shall be made in accordance with the
provisions of the Indenture and the Security; provided, however, that payment of any fees or expenses pursuant to the fifth paragraph hereof shall be made by wire transfer of immediately available funds to an account at a commercial bank in the
United States specified to the Guarantor at least ten (10) days in advance of any demand for payment by the Holders or the Trustee. 

All notices or demands on the Guarantor shall be deemed effective when received, shall be in writing and shall be delivered by hand or by
registered mail, or by facsimile transmission promptly confirmed by registered mail, addressed to the Guarantor at: 
 Berkshire Hathaway
Inc. 
 3555 Farnam Street 

Omaha, NE 68131 
 Attention: Chief
Financial Officer 
 Facsimile: (402) 346-3375 

or to such other addresses or facsimile numbers as the Guarantor shall have notified the Holders or the Trustee in a written notice delivered in accordance
with the Indenture. 
 This Guarantee shall remain in full force and effect and shall be binding on the Guarantor, its successors and assigns
until all of the Obligations have been satisfied in full. 
 This Guarantee shall be governed by, and construed in accordance with, the laws
of the State of New York applicable to contracts made and to be performed solely within such State. 
 No amendment or waiver of any
provision of this Guarantee shall in any event be effective unless the same shall be in writing and signed by the Trustee and the Guarantor. 

If for any reason any provision or provisions hereof are determined to be invalid and contrary to any existing or future law, such invalidity
shall not, to the fullest extent permitted by law, impair the operation of or effect of those portions of this Guarantee that are valid. 

THE GUARANTOR WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL IN CONNECTION WITH ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATED IN ANY
WAY TO THIS GUARANTEE. 

					
	Dated: January 15, 2015	 	BERKSHIRE HATHAWAY INC.
			
		 	By:	 	  

		 		 	Name: Marc D. Hamburg
		 		 	Title:   Senior Vice President and
		 		 	     Chief Financial Officer

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 

The following increases or decreases in this Debt Security have been made: 

 

									
	 Date of exchange
	  	Amount of decrease in
principal amount of
this Debt Security	  	Amount of increase in
principal amount of this
Debt Security	  	Principal amount of this
Debt Security following
such decrease or increase	  	Signature of authorized
signatory of Trustee or
Security Custodian

 ASSIGNMENT 

FOR VALUE RECEIVED, the undersigned assigns and transfers this Debt Security to: 
  

			
	  
  
	  	
	  
 (Insert
assignee’s social security or tax identification number)
	  	
		  	
		  	
	  
  
	  	
	  
  
	  	
	  
 (Insert address and
zip code of assignee)
	  	

 and irrevocably appoints              as agent to transfer this
Debt Security on the Security Register. The agent may substitute another to act for him or her. 
  

									
		 	Dated:	  	Signature:	  		  	
					
		 		  	Signature Guarantee:	  		  	

 (Sign exactly as your name appears on the other side of this Debt Security) 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security Registrar, which
requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]