Document:

Ex.
10.17

 

Warrant

 

THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT
UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO INCEPTION MINING INC.
THAT SUCH REGISTRATION IS NOT REQUIRED.

 

Right
to Purchase Shares of Common Stock of Inception Mining Inc.

 

COMMON
STOCK PURCHASE WARRANT #1

 

	Warrant
    Shares: 9,250,000	Issue
    Date: May 20, 2019

 

Inception
Mining Inc., a corporation organized under the laws of the State of Nevada, hereby certifies that, for value received, ____________________
or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company
(as defined herein) at any time after the Issue Date set forth above for three years following the Issue Date, nine million two
hundred fifty thousand (9,250,000) fully paid and non-assessable shares of Common Stock (as hereinafter defined) at the applicable
Exercise Price per share (as defined below).

 

As
used herein the following terms, unless the context otherwise requires, have the following respective meanings:

 

The
term “Common Stock” includes (i) the Company’s common stock, par value $0.00001; and (ii) any other securities
into which or for which any of the securities described in the preceding clause may be converted or exchanged pursuant to a plan
of recapitalization, reorganization, merger, sale of assets or otherwise.

 

The
term “Company” shall include Inception Mining Inc., a Nevada corporation, and any person or entity which shall succeed,
or assume the obligations of, Inception Mining Inc. hereunder.

 

The
“Exercise Price” applicable under this Warrant shall be a price per share equal to $0.40 with respect to 3,750,000
shares, $0.50 with respect to 3,000,000 shares, and $0.60 with respect to 2,500,000 shares of Common Stock.

 

Article
I. Exercise of Warrant.

 

Section
1.01 Number of Shares Issuable upon Exercise. From and after the date hereof, the Holder shall be entitled to receive,
upon exercise of this Warrant in whole or in part, by delivery of an original or fax copy of an exercise notice in the form attached
hereto as Exhibit A (the “Exercise Notice”) along with payment of the Exercise Price per share, shares of Common
Stock of the Company so long as shares of Common Stock of the Company are available for issuance. All shares of the Common Stock
are immediately exercisable upon the execution of this Warrant as follows:

 

    	 	1	 

    	 	 	 

    

 

Section
1.02 Company Acknowledgment. The Company will, at the time of the exercise of this Warrant, upon the request of the Holder
hereof acknowledge in writing its continuing obligation to afford to such Holder any rights to which such Holder shall continue
to be entitled after such exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the Company to afford to such Holder any such rights.

 

Section
1.03 Callability Right by Company. If the mathematical average of the daily volume weighted average prices of the Common
Stock is equal to or above $0.70 for a period of thirty trading days, then the Company will have the right (at its sole and absolute
discretion) at any time to demand the Holder exercise this Warrant as set forth herein. If the Company demands the exercise as
allowed in this Section and the Holder does not exercise this Warrant within ten business days, then this Warrant shall automatically
expire.

 

Section
1.04 Trustee for Warrant Holders. In the event that a bank or trust company shall have been appointed as trustee for the
Holder of this Warrant, such bank or trust company shall have all the powers and duties of a warrant agent (as described in Section
6 herein) and shall accept, in its own name for the account of the Company or such successor person as may be entitled thereto,
all amounts otherwise payable to the Company or such successor, as the case may be, on exercise of this Warrant pursuant to this
Section 1.

 

Article
II. Procedure for Exercise.

 

Section
2.01 Delivery of Stock Certificates, Etc., on Exercise. The Company agrees that the shares of Common Stock purchased upon
exercise of this Warrant shall be deemed to be issued to the Holder as the record owner of such shares as of the close of business
on the date on which this Warrant shall have been surrendered and payment made for such shares in accordance herewith. As soon
as practicable after the exercise of this Warrant in full or in part, the Company, at Holder’s expense, will cause to be
issued in the name of and delivered to the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes)
may direct in compliance with applicable securities laws, a certificate or certificates for the number of duly and validly issued,
fully paid and non-assessable shares of Common Stock to which such Holder shall be entitled on such exercise so long as such shares
of Common Stock are available for issuance.

 

Section
2.02 Exercise. Payment may be made in cash by wire transfer of immediately available funds or by certified or official
bank check payable to the order of the Company equal to the applicable aggregate Exercise Price, for the number of Common Shares
specified in the Exercise Notice and the Holder shall thereupon be entitled to receive the number of duly authorized, validly
issued, fully-paid and non-assessable shares of Common Stock as provided herein.

 

    	 	2	 

    	 	 	 

    

 

Article
III. Assignment; Exchange of Warrant. Subject to compliance with applicable securities laws, this Warrant, and the rights
evidenced hereby, may be transferred by any registered holder hereof (a “Transferor”) in whole or in part.
On the surrender for exchange of this Warrant, with the Transferor’s endorsement in the form of Exhibit B attached hereto
(the “Transferor Endorsement Form”) and together with evidence reasonably satisfactory to the Company demonstrating
compliance with applicable securities laws, which shall include, without limitation, the provision of a legal opinion from the
Transferor’s counsel (at the Company’s expense) that such transfer is exempt from the registration requirements of
applicable securities laws, the Company at its expense (but with payment by the Transferor of any applicable transfer taxes) will
issue and deliver to or on the order of the Transferor thereof a new Warrant of like tenor, in the name of the Transferor and/or
the transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”), calling in the aggregate
on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant so surrendered
by the Transferor.

 

Article
IV. Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity
agreement or security reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender
and cancellation of this Warrant, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like
tenor.

 

Article
V. Maximum Exercise. Notwithstanding anything herein to the contrary, in no event shall the Holder be entitled to exercise
any portion of this Warrant in excess of that portion of this Warrant upon exercise of which the sum of (a) the number of shares
of Common Stock beneficially owned by the Holder and its Affiliates and (b) the number of shares of Common Stock issuable upon
the exercise of the portion of this Warrant with respect to which the determination of this limitation is being made, would result
in beneficial ownership by the Holder and its Affiliates of any amount greater than 9.99% of the then outstanding shares of Common
Stock. As used herein, the term “Affiliate” means any person or entity that, directly or indirectly through one or
more intermediaries, controls or is controlled by or is under common control with a person or entity, as such terms are used in
and construed under Rule 144 under the Securities Act. For purposes of the second preceding sentence, beneficial ownership shall
be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulations 13(d)-(g) thereunder.
The limitations set forth herein may be waived in whole or in part, upon sixty-one (61) days prior written notice from the Holder
to the Company.

 

Article
VI. Warrant Agent. The Company may, by written notice to the Holder of the Warrant, appoint an agent for the purpose of
issuing Common Stock on the exercise of this Warrant, exchanging this Warrant, and replacing this Warrant, or any of the foregoing,
and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such agent.

 

Article
VII. Transfer on the Company’s Books. Until this Warrant is transferred on the books of the Company, the Company
may treat the registered Holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

Article
VIII. Miscellaneous. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument
in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. THIS WARRANT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAWS. ANY ACTION BROUGHT CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE BROUGHT ONLY IN THE STATE COURTS
OF NEVADA OR IN THE FEDERAL COURTS LOCATED IN THE STATE OF NEVADA; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS
PROVISION AND BRING AN ACTION OUTSIDE THE STATE OF NEVADA. The individuals executing this Warrant on behalf of the Company agree
to submit to the jurisdiction of such courts and waive trial by jury. The prevailing party shall be entitled to recover from the
other party its reasonable attorneys’ fees and costs. In the event that any provision of this Warrant is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Warrant. The headings
in this Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the terms hereof. The invalidity
or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision hereof.
The Company acknowledges that legal counsel participated in the preparation of this Warrant and, therefore, stipulates that the
rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation
of this Warrant to favor any party against the other party.

 

    	2

    	 

    

 

IN
WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

 

	 	INCEPTION
    MINING INC.
	 	 	 
	 	By:
    	/s/
    Trent     D’Ambrosio
	 	Name:	Trent
    D’Ambrosio
	 	Title:	Chief
    Executive Officer

 

    	 	3Exhibit

INFRASTRUCTURE AND ENERGY ALTERNATIVES, INC. 
ANNUAL INCENTIVE COMPENSATION PROGRAM 

Effective May 28, 2019 

		
	1.
	Purpose

The Compensation Committee (the “Committee”) of the Board of Directors of Infrastructure and Energy Alternatives, Inc., Delaware corporation (the “Company”) has determined that it is desirable to maintain an annual incentive compensation program (the “Program”). The purposes of the program include: (1) encouraging excellence and high levels of performance, (2) recognizing the contributions of key employees to the overall profitability and safety of the Company, and (3) encouraging key employees in the Company to cooperate, share information and work together as a team for the overall benefit of the Company and its shareholders. 

		
	2.
	Participation 

The Committee will determine employees eligible to participate in the Program (“Participants”), and reserves the right to review and change the class of eligible employees at any time. Participants will be designated to the following classes based upon their position with the Company and its subsidiaries: (a) Executive Management, (b) Corporate Management, (c) Business Unit and Operating Company Executives, and (d) Operating Company Eligible Employees.  
 
		
	3.
	Eligibility

A.Employment/Participation Level

Except in the case of death, disability or retirement, as set forth below, Participants must be employed in a designated position on December 31 of the applicable fiscal year, be in good standing, and must have been continuously employed in a designated position for a period of nine months prior to the end of the fiscal year to be eligible to participate in the Program. Base salary for purposes of the Program shall include regular compensation only, and shall not include bonus award payments and any other miscellaneous payments that might be treated as income to the employee.

B.Death, Disability and Retirement

If a Participant terminates employment with the Company during the fiscal year before December 31 as a result of death, disability or retirement, and had been employed in a designated position for a period of at least nine months, such employee will be eligible to participate in the Program notwithstanding the fact that the employee is not employed on December 31, and the base salary paid to such Participant during that portion of the year during which he or she was employed in a designated position will be used to calculate the amount of such Participant’s bonus award. Any such bonus award shall be paid to the Participant or, in the case of death, to the Participant’s estate or heirs, at the same time as bonus awards for the fiscal year are paid to other Program Participants as provided in Section 4(B).

C.Military Service

If a Participant is on qualified military leave of absence during part or all of the fiscal year, such Participant will be eligible to participate in the Program if such Participant would have been otherwise eligible to participate. Such Participant’s base salary for purposes of determining any bonus award will be the Participant’s base salary that would have been paid had the Participant not been on military leave. 

D.Extraordinary Circumstances

Extraordinary circumstances will be subject to review by the Committee. 

		
	4.
	Determination of Award and Payment 

The Committee has determined that bonus awards may be paid on the basis of one or more of the following factors depending upon the classification of the Participant:

A.Performance Criteria

1. Target Adjusted EBITDA

A Committee approved Company Adjusted EBITDA goal on a consolidated basis (“Target Adjusted EBITDA”) may be used for determining the payment of a bonus award. Adjusted EBITDA for purposes of computing the bonus awards, as set forth herein, shall be calculated on the same basis as disclosed in the Company’s filings with the Securities and Exchange Commission (the “SEC”). The Company’s audited annual financial statements, on a consolidated basis, will be used to determine whether the Target Adjusted EBITDA goal was met. 

2. TRIR

The Company’s total reportable incident rate (“TRIR”) may be used for determining the payment of a bonus award. TRIR for purposes of computing the bonus awards, as set forth herein, shall be calculated as [•]. [•] will be used to determine TRIR. For certain Business Unit and Operating Company Executives and Operating Company Eligible Employees, TRIR may be calculated on the business unit division and/or operating company division. [•] will be used to determine TRIR on a business unit and/or operating company division basis. 
 
3. Gross Profit

Target gross profit on a business unit and/or operating company basis (“Target Gross Profit”) may be used for determining the payment of a bonus award for certain Business Unit and Operating Company Executives and Operating Company Eligible Employees. Actual gross profit on a business unit and/or operating company basis will be derived from components of the Company’s financial statements, or portions thereof, as filed with the SEC. 

B.Award Payments

The annual bonus award for a given fiscal year will be paid to Participants in the Program in the year following the performance year after the outside auditors have completed their annual audit of the Company.      
 
		
	5.
	Objectives and Formulas for Determination of the Bonus Awards  

A.Executive Management

For Participants designated as members of Executive Management, the percent of base salary eligible to be earned as a bonus is [•]%. Gil---is this the same for all members of each “group” (i.e. executive management, IEA corporate, etc.) as shown in the slide deck.  Subject to the thresholds and maximums set forth below, eighty percent (80%) of the potential award will be based upon achievement of Target Adjusted EBITDA, and twenty percent (20%) of the potential award will be based upon Company composite TRIR. Payment of the portion of the bonus payable upon achievement of Target Adjusted EBITDA will be determined by actual Adjusted EBITDA as follows: 

	
				
	Actual Adjusted EBITDA
	 
	Percentage of Adjusted EBITDA Component Earned

	90% of Target Adjusted EBITDA (threshold award)
	  
	50
	%

	100% of Target  Adjusted EBITDA
	  
	80
	%

	110% of Target Adjusted EBITDA
	  
	100
	%

	125% of Target Adjusted EBITDA
	  
	150
	%

	150% of Target Adjusted EBITDA (maximum award)
	  
	 200
	%

 
Payment of the portion of the bonus payable upon achievement of Company composite TRIR will be determined by achievement of TRIR as follows: 

	
				
	 Actual Results (TRIR)
	  
	 
Percentage of TRIR Component Earned

	1.70 (threshold)*
	  
	50
	%

	1.40
	  
	80
	%

	1.20
	  
	100
	%

	0.95
	  
	 150
	%

	0.70 (maximum)
	  
	200
	%

* If an employee fatality occurs, the threshold is the maximum of the component that may be earned.  

If actual Adjusted EBITDA is lower than the threshold, or the TRIR is higher than the threshold, no amounts will be earned for the respective component. No additional bonus will be earned if the actual Adjusted EBITDA is beyond the maximum, or if TRIR is below the maximum earning threshold. Linear interpolation will be used to determine amounts earned for actual Adjusted EBITDA and TRIR between the thresholds and maximums. 

B.Corporate Management

For Participants designated as members of Corporate Management, the percent of base salary eligible to be earned as a bonus is [•]%. Gil---is this the same for all members of each “group” (i.e. executive management, IEA corporate, etc.) as shown in the slide deck.  Subject to the thresholds and maximums set forth below, eighty percent (80%) of the potential award will be based upon achievement of Target Adjusted EBITDA, and twenty percent (20%) of the potential award will be based upon Company composite TRIR. Payment of the portion of the bonus payable upon achievement of Target Adjusted EBITDA will be determined by actual Adjusted EBITDA as follows: 

	
				
	Actual Adjusted EBITDA
	 
	Percentage of Adjusted EBITDA Component Earned

	90% of Target Adjusted EBITDA (threshold award)
	  
	50
	%

	100% of Target  Adjusted EBITDA
	  
	80
	%

	110% of Target Adjusted EBITDA
	  
	100
	%

	120% of Target Adjusted EBITDA (maximum)
	  
	120
	%

 
Payment of the portion of the bonus payable upon achievement of Company composite TRIR will be determined by achievement of TRIR as follows: 

	
				
	 Actual Results (TRIR)
	  
	 
Percentage of TRIR Component Earned

	1.75* (threshold)
	  
	50
	%

	1.45
	  
	80
	%

	1.25
	  
	100
	%

	0.75 (maximum)
	  
	120
	%

* If an employee fatality occurred, the threshold is the maximum of the component that may be earned.   

If actual Adjusted EBITDA is lower than the threshold, or the TRIR is higher than the threshold, no amounts will be earned for the respective component. No additional bonus will be earned if the actual Adjusted EBITDA is beyond the maximum, or if TRIR is below the maximum earning threshold. Linear interpolation will be used to determine amounts earned for actual Adjusted EBITDA and TRIR between the thresholds and maximums.

C.Business Unit and Operating Company Executives

For Participants designated as Business Unit and Operating Company Executives, the percent of base salary eligible to be earned as a bonus is [•]%. Gil---is this the same for all members of each “group” (i.e. executive management, IEA corporate, etc.) as shown in the slide deck.  Subject to the thresholds and maximums set forth below, twenty-five percent (25%) of the potential award will be based upon achievement of Target Adjusted EBITDA, fifty-five percent (55%) will be based upon 

Target Gross Profit, and twenty percent (20%) of the potential award will be based upon business unit and/or operating company TRIR. Payment of the portion of the bonus payable upon achievement of Target Adjusted EBITDA will be determined by actual Adjusted EBITDA as follows:

 
	
				
	Actual Adjusted EBITDA
	 
	Percentage of Adjusted EBITDA Component Earned

	90% of Target Adjusted EBITDA (threshold award)
	  
	50
	%

	100% of Target  Adjusted EBITDA
	  
	80
	%

	110% of Target Adjusted EBITDA
	  
	100
	%

	125% of Target Adjusted EBITDA (maximum)
	  
	150
	%

Payment of the portion of the bonus payable upon achievement of Target Gross Profit will be determined by actual business unit and/or operating unit gross profit as follows:

	
				
	Actual Gross Profit
	 
	Percentage of Adjusted EBITDA Component Earned

	90% of Target Gross Profit (threshold award)
	  
	50
	%

	100% of Target  Gross Profit
	  
	80
	%

	110% of Target Gross Profit
	  
	100
	%

	125% of Target Gross Profit (maximum)
	  
	150
	%

TRIR goals will be determined by management for each individual business unit and/or operating company and communicated to applicable Participants. If an employee fatality occurred, the threshold is the maximum of the TRIR component that may be earned.   
 
If actual Adjusted EBITDA or actual gross profit is lower than the threshold, or the TRIR is higher than the threshold, no amounts will be earned for the respective component. No additional bonus will be earned if the actual Adjusted EBITDA or actual gross profit is beyond the maximum, or if TRIR is below the maximum earning threshold. Linear interpolation will be used to determine amounts earned for actual Adjusted EBITDA, actual gross profit and TRIR between the thresholds and maximums.

D.Operating Company Eligible Employees

For Participants designated as Operating Company Eligible Employees, the percent of base salary eligible to be earned as a bonus is [•]%. Gil---is this the same for all members of each “group” (i.e. executive management, IEA corporate, etc.) as shown in the slide deck.  Subject to the thresholds and maximums set forth below, eight percent (80%) of the potential award will be based upon achievement of Target Gross Profit, and twenty percent (20%) of the potential award will be based upon business unit and/or operating company TRIR. Payment of the portion of the bonus payable upon achievement of Target Gross Profit will be determined by actual business unit and/or operating unit gross profit as follows:

	
				
	Actual Gross Profit
	 
	Percentage of Adjusted EBITDA Component Earned

	90% of Target Gross Profit (threshold award)
	  
	50
	%

	100% of Target  Gross Profit
	  
	80
	%

	110% of Target Gross Profit
	  
	100
	%

	125% of Target Gross Profit (maximum)
	  
	120
	%

TRIR goals will be determined by management for each individual business unit and/or operating company and 

communicated to applicable participants.  If an employee fatality occurred, the threshold is the maximum of the component that may be earned.   
 
If actual gross profit is lower than the threshold, or the TRIR is higher than the threshold, no amounts will be earned for the respective component. No additional bonus will be earned if the actual gross profit is beyond the maximum, or if TRIR is below the maximum earning threshold. Linear interpolation will be used to determine amounts earned for actual gross profit and TRIR between the thresholds and maximums.

E.Parameters

In the event of extraordinary operating conditions that were unforeseen or changes in laws or accounting procedures after setting the objectives and percentages in this Program, such circumstances will be considered by the Compensation Committee of the Committee in making awards. 
 
		
	6.
	Miscellaneous

A.Nothing in this Program shall confer upon a Participant any right to continue in the employment of the Company, or to interfere in any way with the right of the Company to terminate the Participant’s employment relationship with the Company at any time.  Participation provides no guarantee that any bonus will be paid.  The success of the Company as measured by the achievement of financial and safety goals shall determine the extent to which Participants may receive bonuses hereunder.  

B.The payment made hereunder are intended to comply with, or be exempt from, the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance thereunder (“Section 409A”), and the terms of the Program related thereto shall be construed accordingly.  Payments hereunder that are subject to Section 409A shall not be accelerated unless permitted under Section 409A.  If a Participant who is a “specified employee” of the Company is entitled to a payment under this Program due to his or her “separation from service” (as such terms are used in Section 409A) and such payment is subject to the Section 409A six-month payment delay rule, then such payment shall not be made until the earlier of (1) the first business day that is more than six months following such Participant’s separation from service or (2) such Participant’s death.

C.The Company shall deduct from any payment made hereunder all applicable federal and state income and employment taxes.

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