Document:

Exhibit
10.2

 

	 	AMENDMENT
                                         TO MASTER LEASE

        

 

AMENDMENT
NO. 2

TO
MASTER EQUIPMENT LEASE NO. 2017-223 (“Master Lease”)

DATED
AS OF 3/31/2017

BETWEEN
NFS Leasing, Inc. (“Lessor”)

AND
GlyEco, Inc. and Recovery Solutions & Technologies, Inc. (Each an “Individual Lessee” and collectively the “Lessee”)

 

This
Amendment is made part of and modifies the Master Lease between Lessee and Lessor. Capitalized terms used but otherwise not defined
herein shall have the meaning ascribed to them in the Master Lease. To the extent of any conflict between this Amendment and the
terms and conditions of the Master Lease, this Amendment shall prevail.

 

Lessee
and Lessor agree to the following:

 

	 	1.	Due
    to the legal change of name by Lessee Recovery Solutions & Technologies, Inc., the Master Lease and each Equipment Lease
    Schedule thereunder are hereby amended by replacing the legal name “Recovery Solutions & Technologies, Inc.”
    with the legal name “GlyEco West Virginia, Inc.” in all instances where the former name shall appear.
	 	 	 
	 	2.	In
    order to create a cross-default provision under the Master Lease on account of the Royalty Agreement entered into between
    Lessee and Lessor on May 23, 2019, Section 9 of the Master Lease is hereby amended to add an additional Event of Default,
    9(j), as follows: “(j) Lessee defaults under that certain Royalty Agreement entered into between Lessee and Lessor on
    May 23, 2019.”
	 	 	 
	 	3.	Due
    to Lessee having been assigned a new physical address by the United States Postal Service, “6100 Fairlawn Ave., Institute,
    WV 25112” shall be replaced with “1620 1st Ave. S, Nitro, WV 25143” in all places where the former shall
    appear.
	 	 	 
	 	4.	Due
    to Lessee having been assigned a new physical address by the United States Postal Service, “6600 Fairlawn Ave., Institute,
    WV 25112” shall be replaced with “1620 1st Ave. S, Nitro, WV 25143” in all places where the former shall
    appear.
	 	 	 
	 	5.	Due
    to Lessee having been assigned a new mailing address by the United States Postal Service, “PO Box 10112, Rock Hill,
    SC 29731” shall be replaced with “P.O. Box 387, Institute, WV 25112” in all places where the former shall
    appear.

 

Except
as amended hereby, the Master Lease is restated and shall remain in full force and effect.

 

	LESSOR:
                                          NFS Leasing, Inc.

         

         

         

        By:
        _____________________________________

         

        Name:
        Mark Blaisdell

         

        Title:
        Chief Financial Officer / Chief Credit Officer

         

        Date:
        ____________________________________
	LESSEE:
                                         GlyEco, Inc. and GlyEco West Virginia, Inc.

         

        Individual
        Lessee: GlyEco, Inc.

         

        By:
        ______________________________________

         

        Name:____________________________________

         

        Title:
        _____________________________________

         

        Date:
        _____________________________________

 

Individual
Lessee: GlyEco West Virginia, Inc.

 

By:
______________________________________

 

Name:
____________________________________

 

Title:
_____________________________________

 

Date:
_____________________________________Exhibit 10.3

 

 

 

ADDENDUM 1 TO

EQUIPMENT
LEASE SCHEDULE NO. 4 (“Schedule 4”)

TO
MASTER EQUIPMENT LEASE NO. 2017-223 (“Master Lease”)

DATED
AS OF 3/31/2017

BETWEEN
NFS Leasing, Inc. (“Lessor”)

AND
GlyEco, Inc. and GlyEco West Virginia, Inc. (Each an “Individual Lessee” and collectively the “Lessee”)

 

This
Addendum is made part of and modifies the Master Lease as it pertains ONLY to Schedule 4. Capitalized terms used but not otherwise
defined herein shall have the same meaning ascribed to them in the Master Lease and Schedule 4, as applicable. To the extent of
any conflict between this Addendum and the terms and conditions of the Master Lease and/or Schedule 4, this Addendum shall prevail.

 

Lessor
and Lessee agree to the following additional terms:

 

		1.	Within
                                         seven (7) days of Lessee’s receipt of funds from Lessor pursuant to Schedule 4,
                                         Lessee shall provide Lessor with proof of payment (“Proof of Payment”) evidencing
                                         payments made to various accounts payables in accordance with Paragraph 4 and Exhibit
                                         A of the Affidavit of Richard Steven Geib executed on or about the date hereof for all
                                         accounts in excess of $5,000.00.

 

		2.	Failure
                                         of Lessee to provide Lessor with any Proof of Payment shall constitute an Event of Default
                                         under Section 9 of the Master Lease for which Lessee shall have two (2) days to cure
                                         upon written notice from Lessor.

 

Except
as amended hereby, the Master Lease and is restated and shall remain in full force and effect.

  

	
        LESSOR:  NFS Leasing, Inc.

         

         

         

        By:_____________________________________

         

        Name: Mark Blaisdell

         

        Title: Chief Financial Officer / Chief
        Credit Officer

         

        Date:____________________________________
	
        LESSEE: GlyEco, Inc. and GlyEco
        West Virginia, Inc.

         

        Individual Lessee: GlyEco, Inc.

         

        By:______________________________________

         

        Name:____________________________________

         

        Title:_____________________________________

         

        Date:_____________________________________

 

Individual
Lessee: GlyEco West Virginia, Inc.

 

By:______________________________________

 

Name:____________________________________

 

Title:_____________________________________

 

Date:_____________________________________Exhibit 10.4

 

ROYALTY
AGREEMENT

 

This
Royalty Agreement (the “Agreement”), is made as of May 23, 2019, by and among NFS Leasing, Inc., a Massachusetts
corporation with a principal place of business at 900 Cummings Center, Suite 226-U, Beverly, MA 01915 (“NFS”);
GlyEco, Inc., a Nevada corporation with a principal place of business at 1620 1ST Ave S, Nitro, WV 25143 and with a
mailing address at PO Box 387, Institute, West Virginia 25112 (“GlyEco”); and GlyEco West Virginia, Inc., a
Delaware corporation with a principal place of business at 1620 1ST Ave S, Nitro, WV 25143 and with a mailing address
at PO Box 387, Institute, West Virginia 25112 (“GlyEco WV”). GlyEco and GlyEco WV are together referred to
herein as the “GlyEco Parties.” NFS and the GlyEco Parties are collectively referred to herein as the “Parties.”

 

WHEREAS,
NFS has agreed to extend financing to the GlyEco Parties pursuant to a certain Master Equipment Lease Number 2017-223 dated March
31, 2017, as amended, and Equipment Lease Schedule 4 thereto dated as of the date hereof (the “NFS Financing”);
and

 

WHEREAS,
in exchange for and in consideration of the NFS Financing, and in additional to the monthly payments required under the NFS Financing,
the GlyEco Parties have agreed to pay NFS a monthly royalty payment and an annual royalty payment on all gross revenue generated
by the GlyEco Parties.

 

NOW
THEREFORE, in exchange for the mutual promises contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1. The
GlyEco Parties shall pay to NFS on a monthly basis a royalty payment equal to one percent (1%) of the total consolidated monthly
gross revenue generated by the GlyEco Parties, WEBA Technology Corp. (“WEBA”) and any other wholly owned subsidiaries
(the “Monthly Royalty”). The Monthly Royalty shall carry a term of ten (10) years commencing on May 1, 2019
and continuing through June 30, 2029 (the “Monthly Royalty Term”). Each Monthly Royalty payment shall be paid
monthly in arrears on or before the 15th day after the end of each month. For avoidance of doubt, the first Monthly Royalty payment
covering gross revenue generated during the month of May 2019 is due and payable on or before June 15, 2019, and the final Monthly
Royalty payment is due and payable on or before July 15, 2029. The GlyEco Parties shall provide to NFS on or before the 15th day
of each month during the Monthly Royalty Term and commencing on or before June 15, 2019 a written report of all revenue generated
during the previous month (the “Monthly Reports”), and such report shall be accompanied by the payment due
with respect thereto. For the purposes of this Agreement, “Gross Revenues” shall not include any prepaid documented
shipping charges which are passed-through to customers and set forth on customer invoices.

 

    

     

    

 

2. In
addition to the Monthly Royalty, the GlyEco Parties shall pay NFS on an annual basis a royalty payment on the consolidated annual
gross revenue generated by the GlyEco Parties, WEBA and any other wholly owned subsidiaries calculated as follows: one percent
(1.0%) of the consolidated annual gross revenue generated by the GlyEco Parties from $6,000,000 to $10,000,000, and two percent
(2.0%) of the consolidated annual gross revenue generated by the GlyEco Parties in excess of $10,000,000 (collectively, the “Annual
Royalty”). The Annual Royalty shall carry a term of ten (10) calendar years commencing in calendar year 2019 and continuing
through calendar year 2029 (the “Annual Royalty Term”). Each Annual Royalty payment shall be paid annually
in arrears on or before March 15th of each year. For avoidance of doubt, the first Annual Royalty payment covering annual gross
revenue generated in excess of $5,999,999.99 for the period from January 1, 2019 through December 31, 2019 is due and payable
on or before March 15, 2020, and the final Annual Royalty Payment covering annual gross revenue generated in excess of $5,999,999.99
from January 1, 2029 through December 31, 2029 is due on or before March 15, 2030. In additional to the Monthly Reports, the GlyEco
Parties shall provide to NFS on or before March 15 of each year during Annual Royalty Term and commencing on or before March 15,
2020 a written report of all gross revenue generated by the GlyEco Parties during the prior year, and such report shall be accompanied
by the payment with respect thereto.

 

3. NFS
shall have the right, at NFS’s expense and upon two (2) days written notice, to inspect and review those books, records
and financial statements of the GlyEco Parties which it deems pertinent in confirming that the appropriate royalty is being paid
hereunder. Should such an inspection reveal a shortfall of more than five percent (5%) in the calculation of the amounts due and
paid to NFS for any period during the applicable term, the GlyEco Parties shall reimburse NFS for the documented cost of such
inspection, including any reasonable and documented attorney’s fees incurred in connection therewith.

 

4. If,
at any time during the term of this Agreement, (i) the GlyEco Parties (or either of them) sell, lease, transfer, or exclusively
license all or substantially all of their assets to a third party, (ii) the GlyEco Parties (or either of them) are liquidated
or dissolved, (iii) except for the exercise of warrants issued to NFS, Richard Geib, Jennifer Geib, Charles Trapp, Wynnefield
Partners Small Cap Value, L.P. and Wynnefield Partners Small Cap Value, L.P. I on or about the date hereof in connection with
the NFS Financing, more than fifty percent (50%) of the issued and outstanding shares of stock of the GlyEco Parties (or either
of them) are sold or transferred, or (iv) the GlyEco Parties (or either of them) cease active operations (each, a “Sale
Event”), the GlyEco Parties shall pay to NFS a final royalty payment (the “Final Royalty Payment”)
equal to the average of all Monthly Royalty Payments and Annual Royalty Payments received by NFS for each one (1) year period
during the three (3) year period immediately prior to such Sale Event multiplied by the remaining number of years left in the
Annual Royalty Term. In the event such Sale Event occurs before the three (3) year anniversary of this Agreement, the Final Royalty
Payment shall be equal to the average of all Monthly Royalty Payments and Annual Royalty Payments received by NFS under this Agreement
for each yearly period or portion thereof that have elapsed (with any portion of a yearly period being annualized for this purpose),
multiplied by the remaining number of years left in the Annual Royalty Term. Such Final Royalty Payment due hereunder shall be
made concurrent with the closing or occurrence, as the case may be, of the Sale Event. Notwithstanding the foregoing, in lieu
of making the Final Royalty Payment, the transferee or purchaser of the GlyEco Parties’ assets or shares of stock, as the
case may be, may elect in writing delivered to NFS within thirty (30) days prior to the Sale Event to continue making the royalty
payments to NFS in accordance with Paragraphs 1 and 2 hereinabove and to be bound by the terms of this Agreement, subject to the
consent of NFS, which shall not be unreasonably withheld.

 

    2

     

    

 

5. Any
default by the GlyEco Parties under the terms of this Agreement shall be deemed an Event of Default under the NFS Financing, entitling
NFS to exercise any and all remedies available to it under the NFS Financing, and any default by the GlyEco Parties under the
terms of the NFS Financing shall be deemed a default hereunder.

 

6. To
secure the payments due NFS hereunder, the GlyEco Parties hereby grant NFS a continuing security interest in all of their now
owned and hereafter acquired assets, and shall each execute and deliver to NFS a Security Agreement evidencing same, and each
agree that NFS may file a UCC Financing Statements to perfect such security interests.

 

7. This
Agreement is made in the Commonwealth of Massachusetts and shall be construed in accordance with its laws. If any provision hereof
is in conflict with any statute or rule of law of the Commonwealth of Massachusetts or is otherwise unenforceable, such provision
shall be deemed null and void only to the extent of such conflict or unenforceability, and shall be deemed separate from and shall
not invalidate any other provision of this Agreement. The Parties consent to the non-exclusive jurisdiction of any federal or
state court sitting in the Commonwealth of Massachusetts over any suit, action or proceeding arising out of or relating, directly
or indirectly, to this Agreement. The Parties each hereby knowingly, voluntarily and intentionally, and after an opportunity
to consult with legal counsel, waive any and all rights to a trial by jury in any dispute between them.

 

8. In
the event NFS commences any action to enforce this Agreement, NFS is entitled to recover its reasonable costs, expenses and attorneys’
fees.

 

9. This
Agreement may not be amended or modified except in writing executed by the Parties hereto.

 

10. The
Parties acknowledge that they have thoroughly read and reviewed the terms and provisions of this Agreement and are familiar with
and have unconditionally consented to the terms of this Agreement; they have had full benefit and advice of counsel or the opportunity
to obtain the benefit and advice of counsel of their own selection, in regard to understanding the terms, meaning and effect of
this Agreement; to the extent that they have chosen not to consult with legal counsel, they have been advised to do so; they have
executed this Agreement and will execute any documents in connection herewith freely, voluntarily, with full knowledge, and without
duress; in executing this Agreement, they are relying on no other representations either written or oral, expressed or implied,
made to them by any other party hereto; and they have received actual and adequate consideration hereunder.

 

    3

     

    

 

11. This
Agreement shall only become effective and enforceable if and when signed by all parties to it. Until such time it shall not be
binding on any party. Once signed by all Parties, this Agreement shall be binding upon and inure to the benefit of the Parties,
and their respective successors and assigns, and no other party shall be a beneficiary hereunder.

 

12. This
Agreement may be executed in counterparts.

 

[Signature
Page Follows]

 

    4

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement under seal as of the day and year first above written.

 

		 	NFS
    LEASING, INC.
	 	 	 	 
	 	 	By:	 
	Witness	 	Name:	Mark F. Blaisdell
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	 	GLYECO,
    INC.
	 	 	 	 
	 	 	 	 
	 	 	By:	 
	Witness	 	Name:	 
	 	 	Title:	 
	 	 	 	 
		 	GLYECO
    WEST VIRGINIA, INC.
	 	 	 	 
	 	 	By:
    	 
	Witness	 	Name:	 
	 	 	Title:	 

 

 

5

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