Document:

Exhibit
10.2

 

 

 

MASTER
EQUIPMENT LEASE NUMBER 2017-223

 

This
MASTER EQUIPMENT LEASE (“Master Lease”) is effective as of, March 31, 2017, and
is by and between NFS Leasing, Inc. (“Lessor”), a Massachusetts Corporation having its principal office at 900 Cummings
Center, Suite 226-U, Beverly, MA 01915, with a fax number of (866) 805-3667, and GlyEco, Inc., a Nevada entity with its principal
office at PO Box 10112, Rock Hill, SC 29731 and with a registered agent address of 202 South Minnesota St., Carson City, NV 89703
and Recovery Solutions & Technologies, Inc. (“Lessee”), an Arizona entity with its principal office at 4802 E Ray
Rd., Ste. #23-30, Phoenix, AZ 85044 and a registered agent address of 815 North First Ave, Suite 4, Phoenix, AZ 85003, with a
fax number of 866 -960-1539.

 

IN
CONSIDERATION OF the mutual agreements contained in this Master Lease, the parties agree as follows:

 

		1.	PROPERTY
                                         LEASED; TITLE:

 

1.1
Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, the personal property, together with all replacements,
parts, repairs, additions, attachments and accessories incorporated therein (individually called a “Unit of Equipment”
or a “Unit” and collectively called the “Equipment”) described in each Equipment Lease Schedule executed from
time to time pursuant to this Master Lease and substantially in the form attached hereto as Exhibit A (“Schedule”).
In no event shall Lessee have any right to substitute any similar equipment for any item of Equipment. As appears from Exhibit
A, each Schedule to this Master Lease will consist of three sub-schedules, designated as A, B and C (“Sub-schedule”).
Each such Schedule will be consecutively numbered and shall incorporate all of the terms and conditions of this Master Lease,
and shall contain such additional terms as Lessee and Lessor shall agree upon. In the event of a conflict between the provisions
of this Master Lease and a Schedule, the provisions of the Schedule shall prevail with respect to that Schedule. Sub-schedule
A shall set forth the specific Equipment being leased thereunder, the initial term of the Schedule (“Initial Term”),
and the periodic rent for such Equipment (“Monthly Rent”). Sub-schedule B shall set forth Lessee’s purchase option
with respect to such Equipment at the end of the Initial Term and Sub-schedule C shall constitute Lessee’s acknowledgement
that all such Equipment has been delivered to Lessee by Lessee’s supplier (the “Supplier”) of such Equipment.
Sub-schedule C may also hereinafter be referred to as the “Acceptance Certificate”.

 

1.2
It is expressly understood that the Equipment is, and shall at all times remain the personal property of Lessor. Lessee shall
have no right, title or interest in the Equipment except as expressly provided herein. If requested by Lessor, Lessee will obtain,
prior to delivery of any Unit or at any time thereafter, a certificate satisfactory to Lessor from all parties with a real property
interest in the premises where the Equipment shall be located, waiving any claim with respect to the Equipment (“Landlord
Waiver”). In the event any Equipment will be located at a third party facility such as a data center, then the execution
of Lessor’s then current form of Tri-Party Agreement by Lessee and the owner of such third party facility shall be required
prior to the delivery of any Equipment to such facility. If Lessor supplies Lessee with labels, plates or other markings stating
that Lessor owns the Equipment, Lessee shall attach same in a prominent place on the Equipment.

 

		2.	TERM;
                                         RENT:

 

2.1
The Initial Term for each Schedule shall commence on the first day of the month following the date Lessee accepts such Equipment
as provided for in the below Section 4. (“Commencement Date”) and shall continue until terminated in accordance with
the provisions of this Master Lease. Lessee may terminate any Schedule as of the end of the Initial Term thereof by giving Lessor
written notice, no earlier than 180 days and not later than 120 days prior to the last day of the Initial Term as set forth in
Sub-schedule A. If Lessee does not give such written notice of termination, then notwithstanding any end of Lease purchase options
set forth on the applicable Schedule, the Initial Term shall be automatically extended thereafter on a month-to-month basis at
the same Monthly Rent, until terminated by Lessee giving the aforesaid written notice, which notice shall be effective on the
last date of the month which is at least 120 days subsequent to the effective date of such notice. Any notice of termination must
relate to all the Equipment subject to the Schedule to which the notice applies. In no event shall Lessee have the right to terminate
any Schedule with respect to any Equipment prior to the expiration of the Initial Term except if due to damage or destruction
of any such Equipment in accordance with the below Section 11.2 (b).

 

2.2
Lessee’s obligation to pay the Monthly Rent under each Schedule shall commence on the date such Equipment
has been delivered to Lessee by the Supplier, notwithstanding the actual Commencement Date for such Schedule. For the purposes
of this Master Lease, delivery will be defined as FOB origin. Lessee shall have seven (7) days following its receipt of any such
Equipment to notify Lessor as to any missing Equipment, and its failure to do so shall be construed, as between Lessor and Lessee,
as Lessee’s acknowledgment that all such Equipment has been received by Lessee. In the event such Equipment is delivered
to Lessee in multiple shipments, or for any other reason only partial delivery of such Equipment has occurred, Lessor shall provide
Lessee with a calculation as to the pro rata amount due to Lessor as Rent based upon the Equipment actually received by Lessee
for each such partial delivery. All Rent paid by Lessee prior to the Commencement Date shall constitute “Interim Rent”.
Lessee shall be obligated to pay such Interim Rent in an amount equal to 1/30th of the Monthly Rent for each day Lessee’s
Rent obligation commences in advance of the Commencement Date, less any pro rata adjustments on account of partial delivery of
Equipment as aforesaid. Interim Rent shall be invoiced by Lessor on the first date of each month for the prior month’s Interim
Rent and shall be payable by Lessee within 5 days from the date such invoice is received by Lessee. As of the Commencement Date,
the Monthly Rent shall be payable in advance on the Commencement Date and on the first day of each successive month thereafter
during the Initial Term of such Schedule or any extension thereof. Unless otherwise agreed by Lessor in writing. Monthly Rent
shall be payable by Lessee to Lessor via ACH Direct or other electronic funds transfer service reasonably acceptable to Lessor.
Lessee agrees to timely execute such authorizations as may be required by Lessor and/or ACH Direct or other similar service to
allow direct electronic monthly payments to be made to Lessor. In the event any payment due hereunder is not received by Lessor
within five (5) days after it is due, Lessee shall pay Lessor a late fee of $250.00 to cover Lessor’s administrative and other
costs. In addition to the forgoing late fee. Lessee shall pay interest on such overdue amounts at the rate of one and one-half
(1 1/2) percent per month or the maximum interest rate legally permissible in the state specified in Section 29, whichever is
less (“Late Payment Rate”), which interest shall accrue as of the date such payment was due. Upon Lessee’s execution
of any Schedule to this Master Lease, Lessee shall pay Lessor an amount equal to the first Monthly Rent payment for each Schedule
or such other amount as set forth in Sub-schedule A.

 

3.
NET LEASE: Each Schedule executed hereunder shall constitute a net lease and Lessee agrees that its obligation to pay all
Interim Rent, Monthly Rent and other sums payable hereunder (“Rent”; “Interim Rent” and “Monthly Rent”
are sometimes referred to herein together as “Rent”), shall be absolute and unconditional and shall not be subject to
any refund, abatement, reduction, set-off, defense, counterclaim or recoupment (“Abatement”) whatsoever, including without
limitation, Abatements due to any past, present or future claims arising under this Master Lease, any Schedule or otherwise of
Lessee against Lessor or any assignee of Lessor (“Assignee”), or against the manufacturer or seller of any Unit or against
any person or entity.

 

4.
ACCEPTANCE: Lessee represents and warrants that it has selected all Equipment and each Supplier based upon its own independent
business judgment and expressly disclaims any reliance upon any statement or representation made by Lessor as to the quality of
any such Supplier or the quality or suitability of any such Equipment for Lessee’s intended use. Lessee shall execute an Acceptance
Certificate at such time as the Equipment which is referenced thereon is delivered to Lessee by the Supplier. Any disputes concerning
any defects or non-conformity of any Equipment shall solely be between Lessee and the Supplier and any such dispute shall not
relieve Lessee of its obligation to pay any Interim or Monthly Rent due Lessor. The passage of seven (7) days from the date any
such Equipment is delivered by Supplier, with no notice to the contrary shall constitute conclusive evidence of Acceptance by
the Lessee regardless of whether or not the Acceptance Certificate has been executed and/or received by the Lessor. Lessee hereby
authorizes Lessor to complete any missing or incomplete information on Lessee’s behalf if an Acceptance Certificate has been returned
incomplete. In the event Lessee fails to timely return any Acceptance Certificate, Lessee hereby authorizes Lessor to complete
and acknowledge such Acceptance Certificate on Lessee’s behalf.

 

5.
WARRANTIES; DISCLAIMER OF WARRANTIES:

 

5.1
Lessor warrants that (a) so long as no Event of Default has occurred and is continuing hereunder, (i) Lessee shall have the
right of quiet and peaceful use, possession and enjoyment of the Equipment, subject to and in accordance with the provisions of
this Master Lease, and (ii) notwithstanding any assignment, transfer, or grant of security interest by Lessor, neither Lessor
nor any Assignee shall interfere with Lessee’s said right of quiet enjoyment of the Equipment, and (b) as of the Installation
Date, Lessor shall have title to the Equipment  or the right to lease the Equipment to Lessee.

 

     

     

    

 

5.2
LESSOR MAKES NO OTHER WARRANTY, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER INCLUDING, WITHOUT LIMITATION, THE DESIGN
OR CONDITION OF THE EQUIPMENT, ITS MERCHANTABILITY OR ITS FITNESS OR CAPACITY OR SUITABILITY OR DURABILITY FOR ANY PARTICULAR
PURPOSE, THE QUALITY OF THE MATERIAL OR WORKMANSHIP OF THE EQUIPMENT OR CONFORMITY OF THE EQUIPMENT TO THE PROVISIONS AND SPECIFICATIONS
OF ANY PURCHASE ORDER OR ORDERS RELATING THERETO, AND LESSOR EXPRESSLY DISCLAIMS THE SAME, AND, AS TO LESSOR, LESSEE LEASES THE
EQUIPMENT “AS IS” LESSOR SHALL HAVE NO LIABILITY TO LESSEE FOR ANY CLAIM, LOSS OR DAMAGE CAUSED OR ALLEGED TO BE CAUSED
DIRECTLY, INDIRECTLY, INCIDENTALLY OR CONSEQUENTIALLY BY THE EQUIPMENT, OR BY ANY INADEQUACY THEREOF OR DEFICIENCY OR DEFECT THEREIN,
BY ANY INCIDENT WHATSOEVER IN CONNECTION THEREWITH, ARISING IN STRICT LIABILITY, NEGLIGENCE OR OTHERWISE. UNDER NO CIRCUMSTANCE
SHALL LESSOR BE LIABLE TO LESSEE FOR ANY CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR SPECIAL DAMAGES OF ANY NATURE OR KIND HOWEVER
ARISING, WHETHER UNDER OR IN CONNECTION WITH THIS AGREEMENT OR OTHERWISE, REGARDLESS OF LEGAL THEORY, INCLUDING, BUT NOT LIMITED
TO, ANY DAMAGES OR LOSSES RESULTING FROM BUSINESS INTERRUPTION OR FOR LOST PROFITS. LESSOR’S LIABILITY TO LESSEE FOR ANY
REASON SHALL IN NO EVENT EXCEED RETURN OF AMOUNTS PAID TO LESSOR BY LESSEE.

 

Notwithstanding
the foregoing, provided no Event of Default shall have occurred or be continuing hereunder, during the Term of any Schedule Lessee
shall be entitled to the benefit of any applicable manufacturer’s warranties and such warranties are hereby assigned by Lessor
to Lessee for the benefit of Lessee, to the extent assignable. As to new Equipment, Lessee acknowledges that Lessee ordered the
Equipment from the supplier thereof, and either (a) Lessee received a copy of the contract by which Lessor acquired the Equipment
or (b) Lessor has informed Lessee in writing, either previously or by this Master Lease of (i) the identity of the supplier, (ii)
that Lessee may have rights under said contract and may be entitled, under the version of Uniform Commercial Code Article 2A (“UCC
2A”) as in effect in the state specified in Section 29, to the benefit of warranties provided to Lessor by said supplier,
and (iii) that Lessee may and should contact the supplier to receive an accurate and complete description of such rights including
any disclaimers or limitations on them or of the remedies thereunder. Lessee makes this acknowledgement so that each such Schedule
shall qualify as and be a “finance lease” under UCC 2A. To the fullest extent permitted by applicable law, Lessee hereby
waives all rights and remedies against Lessor conferred upon a lessee by Article 2A of the UCC.

 

6.
LIENS; TAXES:

 

6.1
Lessee shall not directly or indirectly create, incur, assume or suffer to exist any mortgage, lien, security interest, charge,
encumbrance or claim (each a “Lien”) on or with respect to this Master Lease or any Schedule, the Equipment, title thereto
or any interest therein except those Liens created by Lessor or Lessor’s assignee, and Lessee shall immediately at its own expense
take all action as may be necessary to discharge such Lien.

 

6.2
Lessee shall file and pay all income, ad valorem, value added, leasing, leasing use, stamp or other taxes, levies imposts,
duties, charges or withholdings of any nature arising out of the transactions contemplated herein and imposed against Lessor,
Lessee, or the Equipment by any federal, state, local, or foreign government or taxing authority upon or with respect to the Equipment
or upon the sale, purchase, ownership, delivery, leasing, possession, use, operation, return or other disposition thereof, or
upon the Rent, receipts, or earnings, arising herefrom, or upon or with respect to this Master Lease (“Impositions”),
excluding, however, Impositions on, or measured solely by, the net income of Lessor and franchise or similar taxes based on Lessor’s
business existence or status. Lessee shall reimburse Lessor for all Impositions to the extent paid by Lessor in accordance with
the below Section 22. Lessee shall also reimburse Lessor for all sales or use taxes assessed on Rent, installation, transportation
or any Imposition relating to any charge made by Lessor to Lessee. Lessee shall not report any Equipment as directly assessable
to Lessee without the prior consent of Lessor. Lessor shall arrange for the preparation and filing of all personal property tax
returns and the payment of any tax assessments related thereto and Lessee shall reimburse Lessor for such Impositions upon Lessor’s
demand.
If filing by Lessee is required by law, or if requested by Lessor. Lessee shall prepare and file, or cause to be prepared and
filed, all necessary filings for the assessment of such Impositions and shall promptly send Lessor a copy of such filing and submit
to Lessor written evidence of Lessee’s payment thereof. Any tax returns filed by Lessee shall show Lessor as the owner of the
Equipment. All payments and advances made by Lessor shall be deemed Rent, including but not limited to, all Impositions owed directly
by Lessor for which Lessee has responsibility for reimbursement hereunder and all amounts advanced by Lessor to pay Impositions
otherwise owed by Lessee.

 

7.
INDEMNIFICATION: Except for matters solely attributable to Lessor’s gross negligence or willful misconduct, Lessee shall
indemnify and hold harmless Lessor, its assignees, successors or transferees and their respective employees, officers and/or
agents (herein “Indemnified Persons”), from and against any loss (including any loss of tax benefits arising as a
result of an act, omission or misrepresentation of Lessee), liabilities, damages, penalties, claims, suits, costs, expenses
and disbursements at law or in equity, including attorney’s fees, imposed on, incurred by or asserted against the Indemnified
Persons arising out of the leasing, ownership, use, possession, control, maintenance, operation and transportation of the
Equipment, including but not limited to, claims for patent, trademark or copyright infringement by Lessee and claims for
property damage, personal injury or wrongful death arising in  strict liability or negligence. All indemnities contained  in
any section of this Master Lease, including this Section 7, shall survive the expiration or other termination of this Master
Lease or any Schedule with respect to acts or events occurring or alleged to occur prior to return of any Unit to Lessor and
are expressly made for the benefit of, and shall be enforceable by any or all of the Indemnified Persons.

 

8.
USE; INSTALLATION; MAINTENANCE; INSPECTION:

 

8.1
Lessee shall comply with all laws, regulations, and orders of any governmental branch or agency which relate to the installation,
use, possession or operation of the Equipment, and shall use the Equipment in the regular course of its business only, within
its normal capacity, without abuse. Lessee shall remain responsible for all payments due under the Master Lease and any Schedules
regardless of any changes to state or federal law regarding the installation, use, possession or operation of the Equipment.

 

8.2
Lessee shall pay all applicable installation, transportation, rigging, unpacking and repacking, drayage, handling and insurance
charges on the Equipment upon its initial delivery to Lessee. Upon the expiration or earlier termination of the Initial Term or
any extension thereof, Lessee shall pay all such applicable charges in connection with the redelivery of the Equipment to such
destination as is specified by Lessor within the continental United States of America (“Return Location”).

 

8.3
Lessee, at its own expense, shall maintain the Equipment in good operating condition, repair and appearance, and protect the
same from deterioration other than normal wear and tear, and shall enter into, and keep in force a maintenance agreement with
the manufacturer of the Equipment. Lessee shall cause the manufacturer
to keep the Equipment in good and efficient working order, less normal wear and tear, in full compliance and in accordance with
the provisions of such maintenance agreement and shall furnish evidence of such agreement to Lessor upon request. During Lessee’s
normal business hours, Lessee shall provide the manufacturer’s field engineering representatives with access to the Equipment
to install engineering changes necessary to keep the Equipment at currently announced engineering change levels. Upon deinstallation
of any Unit, Lessee shall provide Lessor evidence from the manufacturer stating the Equipment is at currently announced engineering
change levels and is qualified for the manufacturer’s maintenance agreement.

 

8.4
During Lessee’s normal business hours, upon prior written notice to Lessee and subject to Lessee’s reasonable security
procedures, Lessee shall permit Lessor or its designee to inspect the Equipment, Lessee’s equipment log and maintenance
records.

 

9.
DEFAULT: The occurrence of any of the following events shall constitute a default by Lessee hereunder (“Event of Default”):

 

(a)
Lessee shall fail to pay when due any Rent, including any interest thereon, and such failure continues unremedied for a period
of five (5) days after written notice thereof from Lessor to Lessee; (b) Except for defaults covered by Paragraph (a) above, Lessee
shall fail to perform or observe any covenant, condition or agreement to be performed or observed by it hereunder and such failure
continues unremedied for fifteen (15) days after written notice thereof from Lessor to Lessee; (c) Lessee shall have made any
representation or warranty herein, or in any document or certificate executed by Lessee incidental hereto, which is found to have
been false in any material respect at the time such representation or warranty was made; (d) Lessee, or any guarantor of Lessee’s
obligations hereunder (“Guarantor”) shall cease doing business as a going concern, makes
an assignment for the benefit of creditor, admits in writing its inability to pay its debts as they become due, files a voluntary
petition in bankruptcy, is adjudicated a bankrupt or an insolvent, files a petition seeking for itself any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar arrangement under any present or future statute, law or regulation
or files an answer admitting the material allegations of a petition filed against it in any such proceeding, consents to or acquiesces
in appointment of a trustee, receiver, or liquidator of it or of all or any substantial part of its assets or properties, or if
it or its shareholders shall take any action toward its dissolution or liquidation; (e) within
thirty (30) days after the commencement of any proceedings against Lessee or any Guarantor seeking reorganization, arrangement,
readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such proceedings
shall not have been dismissed or set aside, or if within thirty (30) days after the appointment,
without Lessee’s or Guarantor’s consent or acquiescence, of any trustee, receiver or liquidator of it or of all or
any substantial part of its assets and properties, such appointment shall not be vacated; or (f) Lessee shall attempt to remove,
sell, transfer, encumber, part with possession, sublet or assign this Master Lease or any Equipment, except as expressly permitted
hereunder. (g) Lessee or any Guarantor defaults (after the expiration of any applicable cure period) on any indebtedness for borrowed
money or under any lease or installment sale obligation, provided that the Lessee’s financial obligation for such indebtedness
or obligation is at least $50,000.00 in any one instance or in the aggregate as to all such obligations then in default, (h) Lessee
fails to obtain a Tri Party Agreement or Landlord Waiver executed by the applicable third party facility or owner of the real
estate where the Equipment under corresponding Lease Schedule is located. (i) Lessee changes its name, form of business organization
or state of organization without providing at least 30 days advance notice to Lessor and executing such additional documents as
may be required by Lessor in connection therewith.

 

    	 	2	 

     

    

 

10.
REMEDIES: Upon the occurrence of any Event of Default and at any time thereafter, Lessor
may, with or without terminating this Master Lease and any Schedule hereto, in its sole discretion, do any one or more of the
following: (a) proceed by appropriate court action to enforce performance by Lessee of the applicable covenants of this Master
Lease or any Schedule; (b) accelerate and declare immediately payable all sums due and to become due hereunder for the full term
of any and all Schedules to this Master Lease; (c) notify Lessee to assemble any and all Equipment for pick up by Lessor at a
designated time and dare. Lessee hereby agrees that 24 hours advance notice shall be sufficient for purposes of making such Equipment
available for pick up by Lessor, and such Equipment shall be in the condition set forth in the below Section 13; (d) take possession
(by summary proceedings or otherwise) of the Equipment without prejudice to any other remedy or claim referred to herein; (e)
recover from Lessee, as liquidated damages and not as a penalty, an amount equal to the sum of (i) any theo accrued and unpaid
Rent plus interest thereon at the Late Payment Rate, and (ii) the Present Value (as herein defined) of all remaining Rent contracted
to be paid over the unexpired portion of the Initial Term of any outstanding Schedule. For purposes hereof, “Present Value”
shall equal the then value (as of the proposed payment date) of the stream of payments due in the future discounted at a rate
equal to 5% per annum, which discount rate is hereby acknowledged by Lessee and Lessor as being commercially reasonable, plus
interest thereon at the Late Payment Rate until paid and plus, if applicable, any lender breakage costs and/or prepayment penalty
fees charged to Lessor. In addition to the foregoing: (1) in the event Lessor, in its sole discretion chooses to repossess any
or all of the Equipment, Lessee shall be liable for the payment of all commercially reasonable costs and expenses incurred by
Lessor in connection with the repossession, recovery, storage, or repair, sale release or other disposition of any of the Equipment,
including reasonable attorney’s fees and costs incurred in connection therewith or otherwise resulting from Lessee’s default;
or (2) in the event that Lessor in its sole discretion does not repossess any or all of such Equipment, Lessee shall be liable
for payment to Lessor for the fair market value of such Equipment determined by Lessor in a commercially reasonable manner consistent
with industry practices as of the expiration of the Initial Term or any extension thereof, and discounted to Present Value to
the date such payment is made by Lessee, such determination to be conclusive absent manifest error; (f) re-lease or sell any or
all of the Equipment at a public or private sale, with the privilege of becoming the purchaser or lessee thereof, on such terms
and notice as Lessor shall deem reasonable, and thereafter Lessor shall apply the proceeds derived therefrom exclusively for the
benefit of Lessor and in no event shall Lessee be entitled to any such proceeds, (g) exercise any other right or remedy which
may be available to it under the Uniform Commercial Code or any other applicable law. A termination hereunder shall occur only
upon notice by Lessor to Lessee and only as to such Schedules as Lessor specifically elects to terminate and, if applicable, this
Master Lease and all remaining Schedules hereto shall continue in full force and effect. No remedy referred to in this Section
is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to above or otherwise available
to Lessor at law or in equity, and Lessee shall in any event be liable for all costs, expenses and reasonable attorneys’ or other
collection fees incurred by Lessor in enforcing this Master Lease or pursuing any remedy provided to Lessor hereunder. No express
or implied waiver by Lessor of any default shall constitute a waiver of any other default by Lessee or a waiver of any of Lessor’s
rights. Lessee agrees that in the event Lessee refuses or otherwise fails to assemble and allow Lessor access to any Equipment
which Lessor seeks to repossess in accordance with Lessor’s rights under this Section, then in that event Lessor shall be
entitled to obtain injunctive relief against Lessee
to recover
possession of such Equipment.
Lessee agrees that it shall not contest the reasonableness of any liquidated damages as set forth in this Section.

 

11.
DAMAGE; DESTRUCTION OR LOSS:

 

11.1
Upon delivery of the Equipment to Lessee and until the Equipment is redelivered to Lessor, Lessee shall bear the entire risk
of loss, damage, or destruction with respect to the Equipment resulting from any cause whatsoever.

 

11.2 If any Unit becomes
damaged beyond repair, lost, stolen, destroyed or permanently rendered unfit, or in the event of any condemnation or requisition
of title or use of any Unit by any governmental authority (any such occurrence being hereinafter referred to as an “Event
of Loss”), then Lessee shall notify Lessor within 24 hours of such Event of Loss and shall notify Lessor within fifteen (15)
days after the occurrence of an Event of Loss that it chooses to either; (a) At its expense, promptly replace the affected Unit
with a newer unit of identical make, model, configuration, capacity and condition, in good repair, free and clear of all Liens,
in which case any such replacement unit shall become the property of Lessor and for all purposes of this Master Lease shall be
deemed to be the Unit which it replaced; or (b) Terminate the Schedule with respect to the affected Unit and pay to Lessor, an
amount equal to the sum as calculated in Section 10(e) as of the date of the Event of Loss. Payments of Rent and other amounts
due Lessor hereunder shall not be abated on account of any such Event of Loss and Lessee shall diligently pursue the replacement
of or payment for the affected Unit(s), which in any event shall be completed within 60 days of the Event of Loss.

 

12.
INSURANCE: Lessee shall, at its expense, insure the Equipment against all risks and in such amounts as Lessor shall
reasonably require (but no less than the full replacement value) with carriers reasonably acceptable to Lessor, shall
maintain a loss payable endorsement in favor of Lessor and Assignee affording to Lessor and Assignee such additional
protection as Lessor and Assignee shall reasonably require, and Lessee shall maintain liability insurance reasonably
satisfactory to Lessor. All such insurance policies shall name Lessee, Lessor and Assignee as additional insured and loss
payees, and shall provide that insurance coverage shall not be canceled or altered without at least thirty (30) days prior
written notice to Lessor and Assignee, and that no breach of warranty by Lessor shall invalidate such insurance with respect
to any additional insured. Lessee shall furnish appropriate evidence of such insurance to Lessor and Assignee. In accordance
with the provisions of the below Section 22, Lessor may procure such insurance of behalf of Lessee in the event Lessee fails
to insure the Equipment in accordance with the provisions hereof.

 

13.
SURRENDER AND RETURN OF EQUIPMENT:

 

13.1
Surrender of Equipment: Upon the expiration or other termination of any Schedule as provided for in this Master Lease,
and provided Lessee has not duly exercised any applicable purchase option with respect to the Equipment, Lessee shall
surrender and otherwise relinquish all control over the Equipment to Lessor.

 

13.2
Condition of Equipment and Packaging: At Lessee’s expense, Lessee shall de-install the Equipment from
Lessee’s other systems and premises or any third party facility, and repackage the Equipment in its original packaging
or otherwise package the Equipment in accordance with applicable manufacturer’s recommendations. With respect to any
software component of the Equipment, Lessee shall destroy all intangible items constituting such Software and shall deliver
to Lessor all tangible items constituting such software, including but not limited to original certificate of authenticity
issued by the licensor of such Software, if any, the end user license agreement, any CD-ROM, diskettes or other media
relating to such Software. Lessee acknowledges that Lessee rights to the use any such software terminate upon the expiration
or other termination of the applicable Schedule and Lessee shall not thereafter use any such software. If requested by
Lessor, Lessee shall provide a written certification that Lessee has complied with the foregoing software return provisions
and that it will not use any such software subsequent to the expiration or termination of the applicable Schedule. Lessee
further agrees to authorize Lessor and/or the Vendor of such software to inspect all Equipment locations in verify compliance
with the terms hereof. All Equipment shall be in the working condition specified in the above Section 8.3 and Lessee shall
arrange and pay for all such repairs and work required as to any Unit of Equipment for the manufacturer to accept the
Equipment at the time of surrender under the manufacturer’s standard maintenance agreement. All Equipment shall be returned
to Lessor free of any labeling or advertising placed thereon by Lessee. Any expenses incurred by Lessor on account
of Lessee’s failure to comply with this Section 13.2 shall be reimbursed by Lessee to Lessor in accordance with the
provisions of the below Section 22.

 

13.3
Return Location: Lessee at its expense shall deliver the Equipment to such  location within the continental United States
as Lessor shall designate (“Return Location”) and Lessee shall bear the risk of damage or loss until delivery of
the Equipment to the Return Location.

 

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14.
ASSIGNMENT BY LESSOR: LESSOR MAY ASSIGN OR TRANSFER THIS MASTER LEASE OR ANY SCHEDULE
HERETO OR LESSOR’S INTEREST IN THE EQUIPMENT OR GRANT A SECURITY INTEREST THEREIN TO ONE OR MORE ASSIGNEES WITHOUT NOTICE TO LESSEE.
Any Assignee of Lessor shall have all of the rights but none of the obligations of Lessor hereunder unless expressly agreed in
writing, and Lessee agrees that it will not assert against any Assignee any defense, counterclaim or offset that Lessee may have
against Lessor. Lessee shall have no greater obligations to any Assignee than it had to Lessor at the time of assignment, and
such assignment shall not limit or otherwise restrict the rights afforded Lessee
hereunder. Lessee hereby (i) consents to such assignments and/or grants, (ii) agrees to promptly execute and deliver such further
acknowledgements, agreements, and other instruments as may be reasonably requested by Lessor or Assignee to effect such assignments
and/or grants from time to time as each Schedule is executed and (iii) agrees to comply fully with the terms of any such assignments
and/or grants. Lessee acknowledges that any assignment or transfer by Lessor made in accordance with the provisions of this Section
shall not materially change Lessee’s duties or obligations under this Lease nor materially increase the burdens or risks imposed
on Lessee. In the event of an assignment, all references herein to Lessor shall include Assignee.

 

15.
SECURITY DEPOSIT: If requested by LESSOR for any Schedule,
Lessee shall pay to Lessor, as a security deposit (“Security Deposit”), the amount which is specified on such Schedule.
The Security Deposit shall be paid upon Lessee’s execution of such Schedule and will be returned to the Lessee within thirty
(30) days of the Expiration Date, provided that (i) all the Equipment under the Schedule has been returned to Lessor at
the place and in the condition required herein or has been purchased in accordance with the end of Lease options on the applicable
Schedule and (ii) there are no uncured Events of Default by Lessee under the Lease. Lessor shall have the right to deduct from
the Security Deposit any amount not paid to Lessor when due. No such deduction shall diminish
Lessee’s obligation to pay any and all sums due Lessor and any amounts deducted from the Security Deposit which are subsequently
paid by Lessee shall be used to restore the Security Deposit to its original amount. Upon demand from Lessor, Lessee shall pay
the amount necessary to so restore the Security Deposit. Lessee agrees that the Security Deposit may be co-mingled with Lessor’s
other funds and that no interest shall be due to Lessee on account of the Security Deposit. Lessor’s failure to require a
Security Deposit on any Schedule shall not affect its rights to require a Security Deposit on any subsequent Schedule.

 

16.
ASSIGNMENT OR SUBLEASE BY LESSEE: LESSEE SHALL NOT ASSIGN OR IN ANY WAY DISPOSE OF ALL OR ANY PART OF ITS RIGHTS OR
OBLIGATIONS UNDER THIS LEASE OR ENTER INTO ANY SUBLEASE OF ALL OR ANY UNIT OF EQUIPMENT WITHOUT THE PRIOR WRITTEN CONSENT OF
LESSOR, WHICH CONSENT SHALL NOT BE UNREASONABLY WITHHELD SUBJECT TO THE FOLLOWING CONDITIONS WHICH SHALL APPLY SEPARATELY TO
EACH SUCH PROPOSED ASSIGNMENT OR SUBLEASE: (a) Equipment shall not be relocated outside of the United States of America; (b)
Lessee shall give to Lessor written notice of the requested assignment or sublease which notice shall include the identity of
the proposed lessee thereof (“Subsequent Lessee”), any proposed new location of the Equipment, and a true copy of
the proposed Assignment or Sublease agreement including all terms and provisions thereof; (c) Lessee shall furnish or cause
to be furnished to Lessor such financial and other information concerning the Subsequent Lessee as Lessor may request: (d) No
sublease or assignment shall  in any way discharge 
or diminish any of Lessee’s obligations to Lessor under the Master Lease or any Schedule thereto and Lessee
shall pay any excess Rent paid by the Subsequent Lessee over to Lessor; (e) The Subsequent Lessee shall agree to comply with
all terms and provisions of this Master Lease and the applicable Schedules and shall furnish such proof of insurance and
other documents required under this Master Lease to Lessor. Lessee shall assign its rights under any permitted assignment or
sublease to Lessor or Lessor’s Assignee as additional collateral and security for the performance of Lessee’s
obligations hereunder; and (f) Lessor shall have 30 days from the date it receives all required or requested information
concerning such assignment or sublease to notify Lessee that it either consents thereto or specifying the reasons it does not
consent. If consented to, any such assignment or sublease shall be effective as of the date the next Rent payment is due
under the applicable Schedules. Lessee agrees that for purposes of this Section 16, a transfer of 50% or more on the
ownership interest  in Lessee, or a sale or transfer
of substantially all of Lessee’s assets shall be deemed to be an assignment.

 

17.
RELOCATION: Lessee shall not move or permit to be moved any Equipment from the Equipment Location without the prior
written consent of Lessor, which consent shall not be unreasonably withheld; provided, however, in no event shall any
Equipment be moved to a location outside the United States of America, and further provided that all manufacturers’
original warranties and maintenance programs shall continue to remain in effect subsequent to any such relocation. Risk of
loss and all costs and expenses incurred in connection with any movement of Equipment shall be the responsibility of the
Lessee.

 

18.
ALTERATIONS AND MODIFICATIONS: Lessee shall not make modifications, alterations or additions to Equipment (other than
normal operating accessories or controls) without the prior written consent of Lessor, which consent shall not be
unreasonably withheld. Notwithstanding the foregoing, Lessee shall be entitled to acquire and install, at Lessee’s expense,
such additional features or options (“Modifications”) which (i) will not impair the originally intended function or
use of the Equipment in which the Modifications are installed, (ii) will not require removal of any part of the Equipment,
(iii) will not interfere with Lessee’s ability to obtain and maintain the maintenance contract required by Section 8.3 and
(iv) the addition of which will not have an adverse impact upon the value of the underlying Equipment or Lessor’s rights
therein. Such Modifications shall be of the type which are readily installed and removed without damage to the Equipment so
as to restore the Equipment to the condition in which it existed prior to the installation of such Modifications provided,
however, that if Lessor so agrees in writing, Lessee shall not be required to remove such Modifications. Any Modifications
not so removed shall become the property of Lessor. All Modifications must qualify for the manufacturer’s
maintenance agreement and be maintained in accordance with Section 8 hereof. Lessee shall grant to Lessor the right and
opportunity to first submit or match the last proposal for the lease, financing or supply of any Modification.

 

19.
REPRESENTATIONS AND WARRANTIES OF LESSEE: Lessee represents and warrants for the benefit of Lessor and any Assignee: (a)
Lessee is a legal entity, duly organized, validly existing and in good standing under the laws of the jurisdiction of its
incorporation and is in good standing in each jurisdiction where the Equipment will be located and has adequate corporate
power to enter into and perform this Master Lease and each Schedule; (b) This Master Lease and each Schedule have been duly
authorized, executed and delivered by Lessee and constitute a valid, legal and binding agreement of Lessee, enforceable in
accordance with their terms, subject to enforcement limitations imposed by state or federal laws generally affecting the
rights of creditors and general equitable principles; (c) The execution and delivery of and the performance by Lessee of its
obligations under this Master Lease and each Schedule will not violate any judgment, order, law or governmental regulation
applicable to Lessee or any provision of Lessee’s articles of incorporation, by-laws or other organizational documents or
result in any breach of or constitute a default under any instrument or agreement to which Lessee is a party or by which
Lessee or its assets may be bound or result in the creation of any Lien; (d) To the best of Lessee’s knowledge, and after
diligent inquiry, there are no actions, suits or proceedings pending before any court, administrative agency, arbitration
tribunal or governmental body which will, if determined adversely to Lessee, materially adversely affect its ability to
perform its obligations under this Master Lease, each Schedule or any related agreement to which it is a party, (e) Lessee is
not a tax exempt entity under the Internal Revenue Code of 1986 as amended; and (f) All information concerning Lessee’s
business organization, business operations and financial condition furnished by Lessee to Lessor at any time prior to or
subsequent to the execution of this Master Lease is true and accurate in all material respects. If requested by
Lessor, Lessee will provide for each Schedule an Incumbency Certificate or other document identifying the signatures and
establishing the authority of the signers of the lease documents.

 

20.
NOTICES: Any notices required by this Master Lease shall be transmitted by either registered or certified mail, return
receipt requested, or overnight delivery or other form of expedited delivery which requires the signature or acknowledgement
of the receiving party, or via facsimile provided that a successful transmission report is generated. All such notices shall
be issued to the addresses of the parties or their registered agents as set forth above, or to such other address as a party
may hereafter specify by written notice given in  accordance with the requirements of this Section, and shall be deemed
effective on the earlier of the date received or three (3) days after the date notice is postmarked.

 

21.
SOFTWARE: Lessee acknowledges that in the event the Equipment includes software, Lessee shall have no ownership or other
proprietary rights to any such software and Lessee agrees to enter into such software license or other agreement for the use
of such software as may be required by the owner or other authorized distributor of such software. Any software agreement
shall be separate and distinct from this Master Lease and any Schedule,
and Lessor shall not be obligated thereunder. The indemnification provisions of the above Section 7 shall apply to
Lessee’s unauthorized use of the software or other violation of any software agreement. To the extent not specifically
set forth in any other section of this Master Lease. Lessor shall have the right to require Lessee to terminate Lessee’s use
of the Software if an Event of Default shall occur and shall be continuing hereunder.

 

22.
LESSOR’S RIGHT TO CURE: If Lessee fails to perform any obligations hereunder, then Lessor, in addition to all of its
rights and remedies hereunder, may perform the same, but shall not be obligated to do so, at the cost and expense of Lessee.
In such event, Lessee shall promptly reimburse Lessor for any administrative or other costs and expenses, including but not
limited to attorneys or other professional fees, incurred by Lessor, together with interest thereon at the Late Payment Rate
from the date incurred to the date reimbursement is made. All payments and advances made by Lessor shall be deemed
Rent.

 

    	 	4	 

     

    

 

23.
FINANCIAL STATEMENTS AND INFORMATION: During the term of this Master Lease, Lessee shall furnish to Lessor within 90
days following the close of its fiscal year, Lessee’s audited or unaudited (as the case may be) financial
statement (including balance sheet and income statement), all prepared in accordance with generally accepted accounting
principles consistently applied, and, from time to time, such other information concerning the Equipment as Lessor or its
Assignee may reasonably request. In the event Lessee’s financial statement is unaudited, then Lessee shall furnish a
true copy of its Federal tax return within 10 days after the date such return has been filed.

 

24.
EXECUTION; COUNTERPARTS; FINANCING STATEMENT; POWER OF ATTORNEY; CORRECTIVE DOCUMENTS:

 

24.1
This Master Lease and any Schedule hereto may be executed in multiple counterparts, with each such counterpart constituting
an original. Either party may execute this Master Lease and any Schedule hereto via facsimile or via electronic mail, in which
event an original signature page shall promptly be forwarded to the other party, provided however that the failure to forward
such original signature shall not relieve that party of any obligation thereunder.

 

24.2
Lessee agrees that by its execution of this Master Lease, Lessor is authorized to file any UCC financing statements or related
filings as Lessor may reasonably deem necessary to protect or perfect the interest of Lessor, its successors or assigns in this
Master Lease, any Schedule, the payments due hereunder or the Equipment. Lessee agrees to execute such documents as may be required
by applicable law in connection therewith. Lessee agrees that a copy of this Master Lease or any Schedule may be filed by Lessor
as a financing statement. Lessee further agrees that if for any reason this Master Lease and/or any Schedule is determined to
be other than a true lease under the UCC, Lessee hereby grants to Lessor a first priority security interest in the Equipment and
all proceeds attributable thereto to secure payment of all sums due and to become due under this Master Lease and/or any Schedule,
including without limitation, all Rent and Impositions. In the event that Lessee at any time purchases any Equipment from Lessor
under any Schedule to this Master Lease, then in such event Lessee hereby grants to Lessor a perfected first priority security
interest in all such Equipment and all proceeds attributable thereto to secure payment of all sums due and to become due from
Lessee to Lessor on account of such purchase.

 

24.3
Lessee hereby appoints Lessor or any Assignee as its agent and attorney-in-fact to execute, deliver, file and record any and
all Uniform Commercial Code Financing Statements and Statements of Amendment as are deemed necessary by Lessor or any Assignee,
regardless whether for precautionary filing purposes, to indicate the interest of Lessor or any Assignee in this Schedule, the
Equipment and any proceeds thereof.

 

24.4
Lessee and Lessor agree to cooperate with each other with respect to the execution of any documents which may reasonably be
required to correct any errors or omissions in this Master Lease or any Schedule hereto.

 

25.
SUSPENSION OF OBLIGATIONS: Prior to delivery of any Unit, the obligations of Lessor may be suspended to the extent that
Lessor is hindered or prevented from complying therewith because of labor disturbances, acts of God, fire, storms, accidents,
failure of the manufacturer to deliver any Unit, governmental regulations or interference, or any cause whatsoever not
within the sole control of Lessor.

 

26.
SURVIVAL OF REPRESENTATIONS, WARRANTIES, INDEMNITIES AND COVENANTS: All representations, warranties, indemnities and
covenants of Lessee contained in this Master Lease or any other document or certificate delivered pursuant thereto shall
continue in full force and effect and shall survive notwithstanding the full payment of all amounts due hereunder or the
expiration or earlier termination of this Master Lease in any manner whatsoever, except to the extent any such representation
or warranty by its nature expires upon the termination of the Master Lease.

 

27.
EFFECT OF WAIVER: The failure or delay of Lessor in exercising any rights granted hereunder shall not constitute a waiver
of any such right and any single or partial exercise of any particular right by Lessor shall not exhaust the same or
constitute a waiver of any other right provided herein.

 

28.
WAIVER OF JURY TRIAL: To the fullest extent permitted by applicable law, Lessee hereby waives Lessee’s right to a trial
by jury as to any cause of action arising out of or related to this Master Lease to which any such right attaches.

 

29.
GOVERNING LAW AND VENUE: THIS MASTER LEASE SHALL HAVE THE EFFECT OF A CONTRACT ENTERED INTO WITHIN THE COMMONWEALTH OF
MASSACHUSETTS AND SHALL BE CONSTRUED IN ACCORDANCE WITH, AND SHALL BE GOVERNED BY, THE LAWS OF MASSACHUSETTS. Any action
which is commenced to enforce or interpret any provision of this Master Lease, or which otherwise in any manner relates
hereto, shall be commenced only in a court of competent jurisdiction sitting within
Massachusetts and Lessee hereby submits to the exclusive jurisdiction of such court. Notwithstanding the foregoing, and not
in limitation thereof, Lessee agrees that Lessor shall have the right, in its sole discretion, to commence an action in any
court of competent jurisdiction where any Equipment or other collateral securing Lessee’s obligations hereunder is
located, for purposes of obtaining any pre judgment security, or for purposes of recovering or obtaining possession of any
such Equipment or other collateral.

 

30.
ENTIRE AGREEMENT: MODIFICATION; BINDING EFFECT: There are no agreements or understandings, oral or written, between
Lessor and Lessee with respect to the Equipment, other than as set forth in this Master Lease including any addenda or
Schedule hereto. This Master Lease and each Schedule contain the entire agreement between Lessee and Lessor with respect to
the subject matter hereof. Neither the Master Lease nor any Schedule may be altered, modified, terminated or discharged
except by a writing signed by both Lessor and Lessee. This Master Lease and each Schedule shall be hinding upon and shall
inure to the benefit of Lessor, Lessee and their respective successors and assigns.

 

IN
WITNESS WHEREOF, the parties have caused this Master Lease to be duly executed as set forth below

 

	LESSOR: NFS Leasing, Inc.	 	LESSEE: GlyEco, Inc.
	 	 	 	 	 
	By:	/s/ Mark Blaisdell	 	By:	/s/ Ian Rhodes
	 	 	 	 	 
	Name:	Mark Blaisdell	 	Name:	Ian Rhodes
	 	 	 	 	 
	Title:	Vice President – Finance	 	Title:	CEO
	 	 	 	 	 
	Date:	3-31-2017	 	Date:	3-31-17
	 	 	 	 	 
	LESSEE: Recovery Solutions & Technologies, Inc. 	 	 	 
	 	 	 	 	 
	By:	/s/ Ian Rhodes	 	 	 
	 	 	 	 	 
	Name:	Ian Rhodes	 	 	 
	 	 	 	 	 
	Title:	CEO	 	 	 
	 	 	 	 	 
	Date:	3-31-17	 	 	 

 

    	 	5	 

     

    

 

	 	LEASE
    AGREEMENT

 

AMENDMENT
NO. 1 TO

EQUIPMENT
LEASE SCHEDULE NO. 1

TO
MASTER EQUIPMENT LEASE NO. 2017-223

DATED
AS OF 3/31/2017

BETWEEN NFS Leasing, Inc. (“LESSOR”)

AND
GlyEco, Inc. and Recovery Solutions & Technologies, Inc. (“LESSEE”)

 

This
Amendment is made part of and modifies Equipment Lease Schedule 1 to Master Equipment Lease No. 2017-223 (“Schedule 1”)
between GlyEco, Inc. and Recovery Solutions & Technologies, Inc. (“LESSEE”) and NFS Leasing, Inc. (“LESSOR”).
Capitalized terms used but not otherwise
defined herein shall have the meaning ascribed to them in Schedule 1. To the
extent of any conflict between this Amendment and the terms and conditions of Schedule 1, this Amendment shall prevail.

 

LESSEE
& LESSOR hereby agree to the following amendments to Schedule 1:

 

		1.	The Total Sales Price shall increase from $1,500,000.00 Exclusive of Shipping & Tax to $1,700,000.00
Exclusive of Shipping & Tax.

 

		2.	The Advance Payment(s) is amended from:

 

Security
Deposit ($39,458.97), Documentation Fee ($30,000.00) and Annual Commitment Fee ($22,500.00) Totaling $69,458.97

 

To the following:

 

Security
Deposit ($44,720.16), Documentation Fee ($40,000.00), and Annual Commitment Fee ($25,500.00) Totaling $110,220.16

 

		3.	The Lease Terms are amended from:

48
Monthly Lease Payments of $39,458.97

* Lessee
shall have the option to terminate the Lease Schedule any time after Month #24 for a payment in the amount equal to 110% of the
Total Remaining Principal Balance (as described in the Amortization attached hereto as Schedule 1E) plus any applicable taxes,
assuming no Event of Default has occurred and Lessee is current.

 

To
the following:

 

48
Monthly Lease Payments of $44,720.16

* Lessee
shall have the option to terminate the Lease Schedule any time after Month #24 for a payment in the amount equal to 110% of the
Total Remaining Principal Balance (as described in the Amortization attached hereto as Schedule 1E) plus any applicable taxes,
assuming no Event of Default has occurred and Lessee is current.

 

		4.	Schedule 1E shall be replaced with the revised Schedule
1E attached hereto.

 

Signatures
to Follow on Next Page

 

    	 	Page 1 of 2	 

     

    

 

Except as amended hereby,
Schedule 1 is restated and shall remain in full force and effect.

 

EXECUTED as an instrument
under seal as of April 13, 2017.

 

	LESSOR: NFS Leasing, Inc. 	 	LESSEE: GlyEco, Inc. and Recovery Solutions & Technologies, Inc.
	 	 	 
	 	 	Individual Lessee: GlyEco, Inc.
	 	 	 	 
	By: 	/s/ Mark Blaisdell	 	By:	/s/ Ian Rhodes  
	 	 	 	 	 
	Name: 	Mark Blaisdell	 	Name: 	Ian Rhodes  
	 	 	 	 	 
	Title: 	VP – Finance	 	Title: 	CEO  
	 	 	 	 	 
	Date: 	4/14/2017	 	Date: 	4-14-17  
	 	 	 	 
	 	 	Individual Lesse Recovery Solutions & Technologies, Inc.
	 	 	 
	 	 	By:	/s/ Ian Rhodes  
	 	 	 	 
	 	 	Name:	Ian Rhodes  
	 	 	 	 
	 	 	Title: 	CEO  
	 	 	 	 
	 	 	Date: 	4-14-17  

 

    	 	Page 2 of 2Exhibit 10.3

 

 

 

SECURITY
AGREEMENT

 

SECURITY
AGREEMENT

 

3/31/2017

 

In
order to secure the due and punctual payment of all of the Obligations (as herein defined), GlyEco, Inc., a Nevada corporation,
having their place of business located at PO Box 10112, Rock Hill, SC 29731 ("Debtor"), hereby grants to NFS Leasing,
Inc., a Massachusetts Corporation ("Secured Party"), having an address of 900 Cummings Center, Suite 226-U, Beverly,
MA 01915, a continuing security interest in the following item(s) of collateral:

 

ACCOUNTS
RECEIVABLE: All of Debtor's now owned and hereafter acquired accounts, accounts receivable, contract rights, instruments,
and chattel paper.

 

PERSONAL
PROPERTY: All of Debtor's now owned and hereafter acquired tangible and intangible personal property (including, but
not limited to computer hardware and software, intellectual property, patents, inventions, equipment, furnishings and fixtures).

 

The
foregoing security interest(s) is hereby granted together with a continuing security interest in the following additional items
of collateral:

 

(a)          All
money, instruments, documents of title, deposit accounts and other property of Debtor.

 

(b)          All
replacements and substitutions for, and all proceeds (including insurance proceeds) and products of, any or all of the foregoing.

 

(c)          All
of Debtor's books and records relating to any or all of the foregoing.

 

All
of the foregoing items of collateral are hereinafter collectively referred to as the "Collateral".

 

"Obligations"
shall mean all indebtedness and liabilities whatsoever of Debtor to Secured Party which in any manner relate to or arise from
payments owed to Secured Party under a certain Master Equipment Lease (“Master Lease”) executed by Debtor of even
date herewith, whether direct, indirect, absolute or contingent, due or to become due, now existing or hereafter arising.

 

Section
1. Representations, Warranties And Covenants Of Debtor.
Debtor hereby represents, warrants and covenants as follows:

 

(a)          The
Collateral is and will continue to be used primarily for business purposes.

 

(b)          Debtor
is or, to the extent that certain of the Collateral is to be acquired after the date hereof, will be, the owner of the Collateral
free from any adverse lien, security interest or encumbrance, and Debtor will defend the Collateral against all claims and demands
of all persons at any time claiming any interest therein

 

(c)          No
financing statement covering any Collateral is on file in any public office, other than the financing statements filed pursuant
to this Security Agreement. At the request of Secured Party, Debtor will join with Secured Party in executing one or more (i)
financing statements pursuant to the Uniform Commercial Code, (ii) title certificate
lien application forms, and (iii) other documents necessary or advisable to perfect the security interests granted hereby,
all in form satisfactory to Secured Party, and Debtor will pay the cost of filing the same or filing or recording this Agreement
in all public offices wherever filing or recording is deemed by Secured Party to be necessary or desirable. A carbon, photographic,
or other reproduction of this Agreement or a financing statement is sufficient as a financing statement.

 

    	 	1	 

     

    

 

(d)          Debtor
will promptly pay any and all taxes, assessments and governmental charges upon the Collateral or for its use or operation.

 

(e)          Debtor
will immediately notify Secured Party of any event causing a substantial loss or diminution in the value of all or any material
part of the Collateral.

 

(f)          Debtor
will keep the Collateral free from any adverse lien, security interest or encumbrance, and in good order and repair.

 

(g)          Debtor
will not sell, lease or transfer any of the Collateral or any interest therein (except in the ordinary course of business), without
the prior written consent of Secured Party.

 

(h)          Debtor
will not, without the prior written consent of Secured Party, or as permitted by the Master Lease, change the name of Debtor,
the chief executive office of Debtor, the office where Debtor maintains its books and records pertaining to the Collateral or
the location of the Collateral. Unless otherwise specified, the chief executive office of Debtor, the location where Debtor maintains
its books and records and the location of the Collateral is the address of Debtor set forth, above.

 

(i)          Upon
reasonable notice Debtor shall permit Secured Party and its agents to inspect any or all of the Collateral at all reasonable times
and shall promptly deliver to Secured Party and its agents such information with respect to the Collateral as Secured Party may
reasonably request from time to time. The Secured Party may in its own name or in the names of others, communicate with account
debtors in order to verify with them, to Secured Party’s satisfaction, the existence, amount and terms of any accounts.

 

(j)            Debtor
will have and maintain insurance at all times with respect to the Collateral against risks of fire (including so-called extended
coverage), business interruption and such other risks as Secured Party may require, containing such terms, in such form, for such
periods and written by such companies as may be acceptable to Secured Party, such insurance to be payable to Secured Party and
to provide for at least twenty (20) days' prior written cancellation notice to Secured Party. Debtor shall furnish Secured Party
with certificates or other evidence satisfactory to Secured Party of compliance with the foregoing insurance provisions.

 

(k)          Neither
the execution of this Agreement nor the granting of the security interest in the Collateral as provided for herein is prohibited
by or violates the terms of any agreement, undertaking, order or decree to which Debtor or the Collateral is subject to or bound
by.

 

(1)         The
individual executing this Agreement on behalf of Debtor is duly authorized to do so without the need to obtain any additional
authorization or consent.

 

Section
2. Events Of Default. Debtor shall be in default under this Agreement upon the occurrence of any one of the following
events (herein referred to as an "Event of Default”):

 

(a)          Any
representation or warranty made by Debtor to Secured Party herein shall prove to be false or misleading in any material respect
when made;

 

(b)          Default
by Debtor in the due observance or performance of any covenant or agreement herein contained;

 

(c)          Default
in the payment when due of any indebtedness of Debtor to Secured Party secured hereby;

 

    	 	2	 

     

    

 

(d)          The
placing of any attachment on any of the Collateral;

 

(e)          The
occurrence of any other default or Event of Default under any of the documents evidencing or securing the Obligations; or

 

(f)          Loss,
theft, substantial damage or destruction of any of the Collateral which is not fully and adequately covered by insurance.

 

Section
3. Remedies Upon Event Of Default. If any Event of Default occurs and is not cured within five (5) days, Secured Party
may declare all obligations secured hereby to be immediately due and payable without presentment, demand, protest or other notice
of any kind, all of which are hereby expressly waived. Secured Party may exercise all the rights and remedies of a secured party
under the Uniform Commercial Code. Secured Party may require Debtor to assemble the Collateral and make it available to Secured
Party at a place designated by Secured Party. The requirements of reasonable notice shall be met if notice is mailed, postage
prepaid, to Debtor at its address set forth above at least ten (10) days before the time of sale or disposition of the Collateral.
The Secured Party shall have the right to demand from the Debtor a list of all accounts assigned hereunder and to notify any and
all account debtors to make payment thereof directly to Secured Party. Secured Party shall also have the right to (i) open all
mail addressed to Debtor; (ii) change the Post Office box or mailing address of Debtor; and (iii) use Debtor's stationery and
billing forms or facsimiles thereof, for the purpose of collecting accounts and realizing upon the Collateral. Debtor understands
and agrees the Secured Party may exercise its rights hereunder without affording Debtor an opportunity for a preseizure hearing
before Secured Party, through judicial process or otherwise, takes possession of the Collateral upon the occurrence of an Event
of Default, and Debtor expressly waives its constitutional right, if any, to such prior hearing.

 

Section
4. Expenses. Debtor will pay to Secured Party on demand any and all reasonable expenses, including attorneys' fees,
incurred or paid by Secured Party in protecting or enforcing any of its rights hereunder, including its right to take possession
of the Collateral, store and dispose of the same or collect the proceeds thereof.

 

Section
5. Waivers. Non-Exclusive Remedies. No failure or delay on the part of Secured Party in exercising any rights under
this Security Agreement shall operate as a waiver thereof, nor shall any single or partial exercise by Secured Party of any of
such rights preclude any other or further exercise thereof or the exercise of any other rights with respect to the Collateral,
and no waiver as to one Event of Default shall affect the rights of Secured Party as to any other or subsequent Event of Default.

 

Section
6. Changes In Writing. This Agreement and any provision hereof may not be amended, waived or terminated except by a written
instrument signed by Secured Party and Debtor.

 

Section
7. Governing Law. This Agreement shall be construed
in accordance with and governed by the laws of the jurisdiction where the Collateral is located.

 

Section
8. Successors And Assigns. All the terms and provisions of this Agreement shall be binding upon and inure to the benefit
of and be enforceable by the respective heirs, personal representatives, successors and assigns of the parties hereto.

 

Section
9. Further Assurances. Debtor will execute and deliver to Secured Party, upon Secured Party’s request and at
Debtor’s sole cost and expense, any documents Secured Party deems necessary for the perfection of its security interests
or preservation of its rights hereunder.

 

    	 	3	 

     

    

 

Section
10.
General Authority.
Secured Party may, at its election, discharge
taxes, liens or security interests or other encumbrances at any time levied or placed upon the Collateral, pay for insurance
on the Collateral and pay for the maintenance and preservation of the Collateral. Debtor agrees to reimburse Secured Party on
demand for any payment made, or any expense incurred by Secured Party pursuant to the foregoing authorization. Upon request by
Secured Party, Debtor will deliver to Secured Party a detailed aging of accounts receivable in form acceptable to Secured Party.

 

Section
11. Limited Power Of Attorney. Upon the occurrence of an Event of Default, Debtor hereby appoints Secured Party its
true and lawful attorney with full power of substitution to execute any and all documents Secured Party deems necessary to perfect
its security interests hereunder, to demand, collect, receive, receipt for, sue for, compound and give acquittance for, any and
all amounts due and to become due on any accounts and to endorse the name of the Debtor on all commercial paper given in payment
or part-payment thereof and in its discretion to file any claim or take any other action which Secured Party may deem necessary
or appropriate to protect and preserve and realize upon the security interest of the Secured Party in any accounts or the proceeds
thereof, to obtain, adjust, settle and cancel any insurance and endorse any drafts in payment of any loss, to take any actions
permitted by Section 10 hereof and to do all other acts or things contemplated by this Agreement.

 

Section
12. Substitution of Security. At any time while this Agreement is in effect, Debtor shall have the right to post an
irrevocable letter of credit in substitution for this Agreement in an amount equal to the then outstanding balance of the Obligations
and containing such terms as are reasonably acceptable to Secured Party, and upon such posting Secured Party shall discharge all
security interests with respect to the Collateral.

 

Section
13. Subordination. Notwithstanding anything in this Agreement to the contrary, if at any time Debtor enters into a
loan or other financing transaction which results in net new debt in an amount equal to or in excess of two million and five hundred
thousand dollars ($2,500,000.00) with a lender that is unaffiliated with and unrelated to the Debtor, Secured Party agrees to
(i) subordinate its lien on the Collateral to the lien in favor of the new lender, and (ii) execute (a) a subordination agreement
in favor of the new lender in form and substance reasonably satisfactory to the new lender and Secured Party and (b) all other
documents reasonably requested by the new lender to effectuate or confirm such subordination. Debtor and Secured Party hereby
agree that the above described subordination by Secured Party shall be limited to debt from a source that is proven to be unaffiliated
with and unrelated to the Debtor and only in the instance of new debt.

 

IN WITNESS
WHEREOF, this Agreement is executed by Debtor and Secured Party under seal on the date set forth above.

 

	DEBTOR: GlyEco, Inc.	 	 SECURED PARTY: NFS Leasing, Inc.
	 	 	 	 	 
	By:	/s/ Ian Rhodes	 	By:	/s/ Mark Blaisdell
	Name:	Ian Rhodes	 	Mark Blaisdell – VP Finance

 

    	 	4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00269-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00269-of-00352.parquet"}]]