Document:

ex10-1.htm

Exhibit 10.1

 

EQUITY INCENTIVE PROGRAM

THIS EQUITY INCENTIVE PROGRAM (this “Equity Incentive Program”) is offered by GlyEco, Inc., a Nevada corporation (the “Company”), to [Employee Name], an individual (the “Employee”), effective April 1, 2015 (the “Effective Date”).

BACKGROUND

	
·  

	
Company is a green chemistry company dedicated to the collection and recycling of waste glycol.

	
·  

	
Employee is the [Employee Title] of Company’s business.

	
·  

	
Company wishes to offer to Employee, and Employee wishes to accept from Company, equity in lieu of cash for all or part of Employee’s current salary compensation, according to the terms outlined herein.

NOW, THEREFORE, Company and Employee agree as follows:

PROGRAM DETAILS

	
1.  

	
Equity Incentive Program. Company offers to Employee, and Employee accepts from Company, the following Equity Incentive Program:

	
a.  

	
If Employee forgoes 1 to 100% of their current salary compensation, Company shall issue to Employee, at Employee’s election, one of the following:

	
i.  

	
Five stock options per each dollar of such foregone compensation; or

	
ii.  

	
Four shares of restricted common stock per each dollar of such foregone compensation.

NOTE: STOCK OPTIONS ARE EXERCISABLE AT ANY TIME DURING YOUR EMPLOYMENT AND FOR A TERM OF TWELVE MONTHS FOLLOWING THE CONCLUSION OF YOUR EMPLOYMENT WITH COMPANY.

NOTE: THE ISSUANCE OF RESTRICTED STOCK IS SUBJECT TO INCOME TAX AT YOUR ORDINARY TAX RATE.  RESTRICTED STOCK MUST BE HELD FOR A TERM OF SIX MONTHS BEFORE IT CAN BE REGISTERED FOR SALE.

	
2.  

	
Issuance. Company shall issue any stock options or restricted stock due to Employee pursuant to this Equity Incentive Program on the last day of each calendar month.

	
3.  

	
Stock Option Terms.  If Employee elects to receive stock options, the following terms shall apply:

 

  

1 of 2

  

	
a.  

	
Vesting.  All stock options issued pursuant to this Equity Incentive Program shall vest immediately upon issuance.

	
b.  

	
Exercise Price.  All stock options issued pursuant to this Equity Incentive Program shall have an exercise price of $0.24.

	
c.  

	
Term.  All stock options issued pursuant to this Equity Incentive Program shall expire on the tenth anniversary of their date of issuance.

	
d.  

	
Cashless Exercise.  All stock options issued pursuant to this Equity Incentive Program shall have a cashless exercise option.

	
4.  

	
Restricted Stock Terms. If Employee elects to receive restricted stock, the following terms apply:

	
a.  

	
Stock Basis.  All restricted stock issued pursuant to this Equity Incentive Program shall have a stock basis of $0.24 per share.

	
5.  

	
Quarterly Profitability Assessment.  At the end of the calendar quarter, Company will calculate its profitability using an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) standard. If Company is profitable, it shall proportionally distribute salary back to all employees participating in this program in exchange for equity granted.

	
6.  

	
Program Duration.  This Equity Incentive Program will remain in effect until (i) June 30, 2015, or (ii) termination of the employment relationship between Company and Employee, whichever occurs first (the “Program Duration”).

	
7.  

	
Program Participation. Employee hereby agrees to participate in this Equity Incentive Program and to forego $________________ in compensation each month in exchange for _________ for the Program Duration.

 

THE PARTIES HAVE AGREED TO THIS EQUITY INCENTIVE PROGRAM AS OF THE EFFECTIVE DATE.

[EMPLOYEE NAME]

_________________________

GLYECO, INC.

By: _________________________

Name:  Alicia Williams Young

Title:     CFO

 

  

2 of 2EXHIBIT 4.1

 

EXHIBIT
4.1

 

PHI
GROUP, INC. 2015 EMPLOYEE BENEFIT PLAN

 

SECTION
1. INTRODUCTION

 

1.1
Establishment. Effective as provided in Section 17, PHI Group, Inc., a Nevada corporation (the “Company”), hereby
adopts this plan of stock-based compensation for selected Eligible Participants of the Company and affiliated corporation. This
plan shall be known as the PHI Group, Inc. 2015 Employee Benefit Plan (the “Plan”).

 

1.2
Purpose. The purpose of this Plan is to promote the best interest of the Company, and its stockholders by providing a means of
non-cash remuneration to selected Eligible Participants.

 

SECTION
2. DEFINITIONS

 

The
following definitions shall be applicable to the terms used in this Plan:

 

2.1
“Affiliated Corporation” means any corporation that is either a parent corporation with respect to the Company or
a subsidiary corporation with respect to the Company (within the meaning of Sections 424(e) and (f), respectively, of the Internal
Revenue Code).

 

2.2
“Code” means the Internal Revenue Code of 1986, as it may be amended from time to time.

 

2.3
“Committee” means a committee designated by the Board of Directors to administer this Plan or, if no committee is
so designated, the Board of Directors. Any Committee member who is also an Eligible Participant may receive an Option or Stock
Award only if he abstains from voting in favor of a grant to himself, and the grant is determined and approved by the remaining
Committee members. The Board of Directors, in its sole discretion, may at any time remove any member of the Committee and appoint
another Director to fill any vacancy on the Committee.

 

2.4
“Common Stock” means the Company’s $0.001 par value common stock.

 

2.5
“Company” means PHI Group, Inc., a Nevada corporation.

 

2.6
“Effective Date” means the effective date of this Plan, as set forth in Section 17 hereof.

 

2.7
“Eligible Participant” means any employee, director, officer, consultant, or advisor of the Company who is determined
(in accordance with the provisions of Section 4 hereof) to be eligible to receive an Option or Stock Award hereunder.

 

2.8
“Option” means the grant to an Eligible Participant of a right to acquire shares of Common Stock.

 

2.9
“Plan” means this PHI Group, Inc. 2015 Employee Benefit Plan dated March 18, 2015.

 

2.10
“Stock Award” means the grant to an Eligible Participant of shares of Common Stock issuable directly under this Plan
rather than upon exercise of an Option. Wherever appropriate, words used in this Plan in the singular may mean the plural, the
plural may mean the singular, and the masculine may mean the feminine.

 

SECTION
3. ADOPTION AND ADMINISTRATION OF THIS PLAN

 

Upon
adoption by the Company’s Board of Directors, this Plan became effective as of March 18, 2015. In the absence of contrary
action by the Board of Directors, and except for action taken by the Committee pursuant to Section 4 in connection with the determination
of Eligible Participants, any action taken by the Committee or by the Board of Directors with respect to the implementation, interpretation
or administration of this Plan shall be final, conclusive and binding.

 

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SECTION
4. ELIGIBILITY AND AWARDS

 

The
Committee shall determine at any time and from time to time after the effective date of this Plan:

 

(i)
the Eligible Participants;

 

(ii)
the number of shares of Common Stock issuable directly or to be granted pursuant to an Option;

 

(iii)
the price per share at which each Option may be exercised, in cash or cancellation of fees for services for which the Company
is liable, if applicable, or the value per share if a direct issue of stock pursuant to a Stock Award; and (iv) the terms on which
each Option may be granted. Such determination, as may from time to time be amended or altered at the sole discretion of the Committee.
Notwithstanding the provisions of Section 3 hereof, no such determination by the Committee shall be final, conclusive and binding
upon the Company unless and until the Board of Directors has approved the same; provided, however, that if the Committee is composed
of a majority of the persons then comprising the Board of Directors of the Company, such approval by the Board of Directors shall
not be necessary.

 

SECTION
5. GRANT OF OPTION OR STOCK AWARD

 

Subject
to the terms and provisions of this Plan, the terms and conditions under which an Option or Stock Award may be granted to an Eligible
Participant shall be set forth in a written agreement (i.e., a Consulting Agreement, Services Agreement, Fee Agreement, or Employment
Agreement) or, if an Option, a written Grant of Option. (The form shall be determined by the Committee, in its sole discretion,
or may be determined by the Board of Directors)

 

SECTION
6. TOTAL NUMBER OF SHARES OF COMMON STOCK

 

The
total number of shares of Common Stock reserved for issuance by the Company either directly as Stock Awards or underlying Options
granted under this Plan shall not be more than 1,000,000, approved by the Board of Directors on March 18, 2015. The total number
of shares of Common Stock reserved for such issuance may be increased only by a resolution adopted by the Board of Directors and
amendment of this Plan. Such Common Stock may be authorized and unissued or reacquired Common Stock of the Company.

 

SECTION
7. PURCHASE OF SHARES OF COMMON STOCK

 

7.1
As soon as practicable after the determination by the Committee and approval by the Board of Directors (if necessary, pursuant
to Section 4 hereof) of the Eligible Participants and the number of shares an Eligible Participant may be issued directly as a
Stock Award or eligible to purchase pursuant to an Option, the Committee shall give written notice thereof to each Eligible Participant,
which notice may be accompanied by the Grant of Option, if appropriate, to be executed by such Eligible Participant.

 

7.2
The negotiated cost basis of stock issued directly as a Stock Award or the exercise price for each Option to purchase shares of
Common Stock pursuant to paragraph 7.1 shall be as determined by the Committee, it being understood that the price so determined
by the Committee may vary from one Eligible Participant to another. In computing the negotiated direct issue price as a Stock
Award or the Option exercise price per share of Common Stock, the Committee shall take into consideration, among other factors,
the restrictions set forth in Section 11 hereof.

 

SECTION
8. TERMS AND CONDITIONS OF OPTIONS

 

The
Committee shall determine the terms and conditions of each Option granted to Eligible Participants, which terms shall be set forth
in writing. The terms and conditions so set by the Committee may vary from one Eligible Participant to another. In the event that
all the Committee approves an Option permitting deferred payments, the Eligible Participant’s obligation to pay for such
Common Stock may be evidenced by a promissory note executed by such Eligible Participant and containing such modifications thereto
and such other provisions as the Committee, in its sole discretion, may determine.

 

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SECTION
9. DELIVERY OF SHARES OF COMMON STOCK UPON EXERCISE OF OPTION

 

The
Company shall deliver to each Eligible Participant such number of shares of Common Stock as such Eligible Participant is entitled
to receive pursuant to a Stock Award or elects to purchase upon exercise of the Option. Such shares, which shall be fully paid
and non-assessable upon the issuance thereof (unless a portion or all of the purchase price shall be paid on a deferred basis)
shall be represented by a certificate or certificates registered in the name of the Eligible Participant and stamped with an appropriate
legend referring to the restrictions thereon, if any. Subject to the terms and provisions of the Florida Statutes and the written
agreement to which he is a party, an Eligible Participant shall have all the rights of a stockholder with respect to such shares,
including the right to vote the shares and to receive all dividends or other distributions paid or made with respect thereto (except
to the extent such Eligible Participant defaults under a promissory note, if any, evidencing the deferred purchase price for such
shares), provided that such shares shall be subject to the restrictions hereinafter set forth. In the event of a merger or consolidation
to which the Company is a party, or of any other acquisition of a majority of the issued and outstanding shares of Common Stock
of the Company involving an exchange or a substitution of stock of an acquiring corporation for Common Stock of the Company, or
of any transfer of all or substantially all of the assets of the Company in exchange for stock of an acquiring corporation, a
determination as to whether the stock of the acquiring corporation so received shall be subject to the restrictions set forth
in Section 11 shall be made solely by the acquiring corporation.

 

SECTION
10. RIGHTS OF EMPLOYEES; ELIGIBLE PARTICIPANTS

 

10.1
Employment. Nothing contained in this Plan or in any Option or Stock Award granted under this Plan shall confer upon any Eligible
Participant any right with respect to the continuation of his or her employment by the Company or any Affiliated Corporation,
or interfere in any way with the right of the Company or any Affiliated Corporation, subject to the terms of any separate employment
agreement to the contrary, at any time to terminate such employment or to increase or decrease the compensation of the Eligible
Participant from the rate in existence at the time of the grant of an Option or Stock Award. Whether an authorized leave of absence
shall constitute termination of employment shall be determined by the Committee at the time.

 

10.2
Non-transferability. No right or interest of any Eligible Participant in an Option or Stock Award shall be assignable or transferable
during the lifetime of the Eligible Participant, either voluntarily or involuntarily, or subjected to any lien, directly or indirectly,
by operation of law, or otherwise, including execution, levy, garnishment, attachment, pledge or bankruptcy. However, the Board
of Directors may, in its sole discretion, permit transfers to family members if and to the extent such transfers are permissible
under applicable securities laws. In the event of an Eligible Participant’s death, an Eligible Participant’s rights
and interest in an Option or Stock Award shall be transferable by testamentary will or the laws of descent and distribution, and
delivery of any shares of Common Stock due under this Plan shall be made to, and exercise of any Options may be made by, the Eligible
Participant’s legal representatives, heirs or legatees. If in the opinion of the Committee a person entitled to payments
or to exercise rights with respect to this Plan is unable to care for his or her affairs because of mental condition, physical
condition, or age, payment due such person may be made to, and such rights shall be exercised by, such person’s guardian,
conservator or other legal personal representative upon furnishing the Committee with evidence satisfactory to the Committee of
such status.

 

SECTION
11. GENERAL RESTRICTIONS

 

11.1
Representations. Eligible Participants to whom an Option or Stock Award is granted shall represent to the Company and agree, that
as a condition of exercising such Option, or receiving such Stock Award, in substance and form satisfactory to the Company and
its counsel that such person is acquiring the Common Stock subject to the Option or Stock Award for his or her own account for
investment and not with any present intention of selling or otherwise distributing the same, other than pursuant to an effective
registration statement under the Securities Act, and to such other effects as the Company deems necessary or appropriate in order
to comply with federal and applicable state securities laws.

 

Shares
shall not be issued under the Plan unless the issuance and delivery of such shares complies with (or is exempt from) all applicable
requirements of law, including (without limitation) the Securities Act, the rules and regulations promulgated thereunder, state
securities laws and regulations, and the regulations of any stock exchange on which the Company’s securities may then be
listed, and the Company has obtained the approval of or a favorable ruling from any governmental agency that the Company determines
to be necessary or advisable.

 

11.2
Restrictions on Transfer of Common Stock. The shares of Common Stock issuable directly as a Stock Award or upon exercise of an
Option may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement or pursuant
to an exemption from registration, the availability of which is to be established to the satisfaction of the Company, and any
certificates representing shares of Common Stock will bear a legend to that effect. However, the Company may, in the sole discretion
of the Board of Directors, register under the Securities Act some or all of the shares of Common Stock reserved for issuance under
this Plan. Special resale restrictions may, however, continue to apply to officers, directors, control shareholders and affiliates
of the Company and such persons will be required to obtain an opinion of counsel as regards their ability to resell shares received
pursuant to this Plan.

 

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11.3
Compliance with Securities Laws. Each Option or Stock Award shall be subject to the requirement that if at any time counsel to
the Company shall determine that the listing, registration or qualification of the shares of Common Stock subject to such Option
or Stock Award upon any securities exchange or under any state or federal law, or the consent or approval of any governmental
or regulatory body, is necessary as a condition of, or in connection with, the issuance or purchase of shares thereunder, such
Option or Stock Award may not be accepted or exercised in whole or in part unless such listing, registration, qualification, consent
or approval shall have been effected or obtained on conditions acceptable to the Committee. Nothing herein shall be deemed to
require the Company to apply for or to obtain such listing, registration or qualification.

 

11.4
Changes in Accounting Rules. Notwithstanding any other provision of this Plan to the contrary, if, during the term of this Plan,
any changes in the financial or tax accounting rules applicable to Options or Stock Awards shall occur that, in the sole judgment
of the Committee, may have a material adverse effect on the reported earnings, assets or liabilities of the Company, the Committee
shall have the right and power to modify as necessary, or cancel, any then outstanding and unexercised Options.

 

SECTION
12. COMPLIANCE WITH TAX REQUIREMENTS

 

Each
Eligible Participant shall be liable for payment of all applicable federal, state and local income taxes incurred as a result
of the receipt of a Stock Award or an Option, the exercise of an Option, and the sale of any shares of Common Stock received pursuant
to a Stock Award or upon exercise of an Option. The Company may be required, pursuant to applicable tax regulations, to withhold
taxes for an Eligible Participant, in which case the Company’s obligations to deliver shares of Common Stock upon the exercise
of any Option granted under this Plan or pursuant to any Stock Award, shall be subject to the Eligible Participant’s satisfaction
of all applicable federal, state and local income and other income tax withholding requirements.

 

SECTION
13. PLAN BINDING UPON ASSIGNS OR TRANSFEREES

 

In
the event that, at any time or from time to time, any Option or Stock Award is assigned or transferred to any party (other than
the Company) pursuant to the provisions of Section 10.2 hereof, such party shall take such Option or Stock Award pursuant to all
provisions and conditions of this Plan, and, as a condition precedent to the transfer of such interest, such party shall agree
(for and on behalf of himself or itself, his or its legal representatives and his or its transferees and assigns) in writing to
be bound by all provisions of this Plan.

 

SECTION
14. COSTS AND EXPENSES

 

All
costs and expenses with respect to the adoption, implementation, interpretation and administration of this Plan shall be borne
by the Company.

 

SECTION
15. CHANGES IN CAPITAL STRUCTURE OF THE COMPANY

 

Appropriate
adjustments shall be made to the number of shares of Common Stock issuable pursuant to an incomplete or pending Stock Award that
has not yet been delivered or upon exercise of any Options and the exercise price thereof in the event of: (i) a subdivision or
combination of any of the shares of capital stock of the Company; (ii) a dividend payable in shares of capital stock of the Company;
(iii) a reclassification of any shares of capital stock of the Company; or (iv) any other change in the capital structure of the
Company.

 

SECTION
16. PLAN AMENDMENT, MODIFICATION AND TERMINATION

 

The
Board, upon recommendation of the Committee or at its own initiative, at any time may terminate and at any time and from time
to time and in any respect, may amend or modify this Plan, including:

 

(a)
Increase the total amount of Common Stock that may be awarded under this Plan, except as provided in Section 15 of this Plan;

 

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(b)
Change the classes of persons from which Eligible Participants may be selected or materially modify the requirements as to eligibility
for participation in this Plan;

 

(c)
Increase the benefits accruing to Eligible Participants; or

 

(d)
Extend the duration of this Plan.

 

Any
Option or other Stock Award granted to a Eligible Participant prior to the date this Plan is amended, modified or terminated will
remain in effect according to its terms unless otherwise agreed upon by the Eligible Participant; provided, however, that this
sentence shall not impair the right of the Committee to take whatever action it deems appropriate under Section 11 or Section
15. The termination or any modification or amendment of this Plan shall not, without the consent of Eligible Participant, affect
his rights under an Option or other Stock Award previously granted to him.

 

SECTION
17. EFFECTIVE DATE OF THIS PLAN

 

17.1
Effective Date. This Plan is effective as of March 18, 2015, the date it was adopted by the Board of Directors of the Company.

 

17.2
Duration of this Plan. This Plan shall terminate at midnight on March 18, 2020, which is the day before the fifth anniversary
of the Effective Date, and may be extended thereafter or terminated prior thereto by action of the Board of Directors; and no
Option or Stock Award shall be granted after such termination. Options and Stock Awards outstanding at the time of this Plan termination
may continue to be exercised, or become free of restrictions, in accordance with their terms.

 

SECTION
18. BURDEN AND BENEFIT

 

The
terms and provisions of this Plan shall be binding upon, and shall inure to the benefit of, each Eligible Participant, his executives
or administrators, heirs, and personal and legal representatives.

 

Approved
by the Board of Directors of PHI Group, Inc. on March 18, 2015.

 

Dated:
March 18, 2015

 

	/s/
    Tam T. Bui	 
	Tam
    T. Bui, Director	 
	 	 
	/s/
    Henry D. Fahman	 
	Henry
    D. Fahman, Director	 
	 	 
	/s/
    Frank Hawkins	 
	Frank
    Hawkins, Director	 

 

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