Item 1.01 Entry into a Material Definitive Agreement.
On January 14, 2020, GlyEco, Inc. ("GlyEco," or the "Company") and GlyEco West
Virginia, Inc. (f/k/a Recovery Solutions & Technologies, Inc.), a Delaware
corporation and wholly-owned subsidiary of the Company ("GlyEco WV" and
collectively with the Company, the "GlyEco Parties") entered into a strict
foreclosure agreement (the "Agreement") with NFS Leasing, Inc., a Massachusetts
corporation ("NFS") that consists of the GlyEco Parties' agreement and consent
to NFS's acceptance of certain collateral pledged by the GlyEco Parties (the
"Collateral") in partial satisfaction of certain obligations under that certain
the Amended and Restated Security Agreement between GlyEco WV and NFS dated May
23, 2019 and the Amended and Restated Security Agreement (and related documents)
between the Company and NFS dated effective as of May 23, 2019 (together, the
"Security Agreements"), which were previously disclosed in the Company's Current
Report on Form 8-K filed with the U.S. Securities and Exchange Commission on
June 6, 2019. A copy of the Agreement is included as Exhibit 10.1 to this
current report and is hereby incorporated by reference.
The Agreement memorializes the GlyEco Parties' consent to NFS's election to
accept the Collateral in partial satisfaction of the GlyEco Parties' obligations
pursuant to the Security Agreements and the GlyEco Parties' waiver of the right
to notice of such election pursuant to Uniform Commercial Code.
The Agreement also provides for NFS's acceptance of the Collateral in
satisfaction of $2,825,725.42 of the $5,687,026.78 (the "Total Balance")
outstanding due from the GlyEco Parties to NFS pursuant to the Security
Agreements as of January 13, 2020. The GlyEco Parties remain liable, jointly and
severally, under the Security Agreements to NFS for the remainder of the Total
Balance of $2,861,301.36.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Departure of Directors
On January 16, 2020, Dwight Mamanteo, Charles Trapp, Frank Kneller, and Scott
Nussbaum (together, the "Independent Directors") tendered their resignations as
directors of the Company effective immediately. The resignations were not the
result of any disagreement with the Company on any matter relating to its
operations, policies, or practices.
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