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Exhibit 10.2
 
 
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MATERIAL BELOW MARKED BY AN “***” HAS BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. THIS ENTIRE EXHIBIT INCLUDING THE OMITTED CONFIDENTIAL
INFORMATION HAS BEEN FILED SEPARATELY WITH THE COMMISSION.
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SECOND AMENDMENT TO PROCESSING AGREEMENT

This SECOND AMENDMENT TO PROCESSING AGREEMENT (2nd Amendment”) is entered into
effective this 1st day of January, 2016 (“Effective Date”) by and between Vertex
Energy, Inc., a Texas Corporation having an office at 200 Atlantic Pipeline Road
(“CUSTOMER”) and KMTEX LLC, Texas Limited Liability Corporation, having an
office at 333 North Sam Houston Parkway East, Suite 1250, Houston, Texas 77060
(“KMTEX”).

WITNESSETH

WHEREAS, effective July 1, 2012, CUSTOMER and KMTEX entered into an agreement
for the processing of certain petroleum distillates (“Processing Agreement”);

WHEREAS, effective November 1, 2013, CUSTOMER and KMTEX amended the Agreement
for the processing of certain petroleum distillates (“First Amendment to the
Processing Agreement”);

WHEREAS, CUSTOMER and KMTEX wish to restate and revise the term and fee schedule
of the Processing Agreement;

NOW THEREFORE, these premises considered, the parties agree to amend the
Processing Agreement as follows:

1.           Section 2.1 of the Agreement under Article 2 entitled Term and
Termination will be deleted in its entirety and the following substituted in its
place:

Section 2.1
This agreement commences on the Effective Date and its Initial Term shall expire
on December 31, 2016, subject to the other provisions in this Agreement, or as
otherwise agreed to by the Parties.

2.           Attachment D entitled Fees & Quantities will be deleted in its
entirety and the following substituted in its place:

 
 

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MATERIAL BELOW MARKED BY AN “***” HAS BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. THIS ENTIRE EXHIBIT INCLUDING THE OMITTED CONFIDENTIAL
INFORMATION HAS BEEN FILED SEPARATELY WITH THE COMMISSION.
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Attachment-D - Fees & Quantities

 
·
PYGAS FEED

 
o
Processing fee:  $*** per pound of Pygas Feed processed.

 
§
Includes a dedicated *** barrel tank for Pygas Feed and a *** barrel tank for
overheads.  These tanks will be provided at no charge as long as a minimum
cumulative throughput of *** barrels of material is processed quarterly.  In the
event the throughput falls below target, KMTEX reserves the right to charge tank
rental or designate the tanks for other service.

 
·
The Pygas TOPS portion of the finished product must ship out within 10 calendar
days after processing is complete and the material balance has been
reported.  After such time KMTEX shall charge $*** per day penalty for each day
the material remains in KMTEX storage.

 
·
VSR FEED

 
o
Processing Fee:  $*** per pound of VSR Feed processed.  In the event that the
processing rates of a feed material are significantly reduced due to a change in
composition that directly effects processing, KMTEX reserves the right to
renegotiate the processing fee of that particular feed material.

 
§
Includes a *** barrel tank for overheads which must ship out within 10 calendar
days after processing is complete and the material balance has been
reported.  After such time KMTEX shall charge $*** per day penalty for each day
the material remains in KMTEX storage.

 
·
TANK RENTAL

 
o
Tank rental  rates to support VSR Feed processing as follows:

 
·
$***/month for the following tanks:

 
o
VSR Feed:  *** or *** barrel tank

 
o
VSR & Pygas Bottoms: *** barrel tank for combined use to support Pygas and VSR
Feed processing

 
o
Additional *** gallons of storage to supplement Pygas and VSR Feed processing

 
·
Additional Tank rental rates as follows

 
o
$***/month ($***/day) for an *** barrel tank

 
o
$***/month ($***/day) for a *** barrel tank

 
o
$***/month ($***/day) for a *** barrel tank

 
o
$***/month ($***/day) for  a *** gallon tank

 
o
$***/month ($***/day) for a *** gallon tank

 
·
GENERAL TERMS:

 
o
KMTEX will terminal, accumulate and blend materials and charge for tank rental
and handling.

 
§
In and out charges for additional terminalled product as follows:

 
·
$*** per tank truck of incoming unprocessed material

 
·
$*** per railcar unloaded of unprocessed material

 
§
PROCESSING BY-PRODUCTS: CUSTOMER will be responsible for the expense associated
with disposal of any high flash non-hazardous water generated from processing at
a cost of $***/gallon, and any low flash hazardous water generated from
processing at a cost of $***/gallon; provided, however, such disposal cost

 
 
 
2

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MATERIAL BELOW MARKED BY AN “***” HAS BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. THIS ENTIRE EXHIBIT INCLUDING THE OMITTED CONFIDENTIAL
INFORMATION HAS BEEN FILED SEPARATELY WITH THE COMMISSION.
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shall be limited to disposal of water that is attributable to the water content
of the Feed.
 
o
Regarding Additives

 
§
All additives being delivered to KMTEX will have to be scheduled with the KMTEX
logistics department and an unloading time assigned.

 
§
All additives will have to be labeled with CUSTOMER name on the side of the drum
/ tote.

 
§
There will be a charge of one dollar per gallon for each additive administered
with a minimum charge of $*** for each additive.

 
§
It will be the responsibility of the CUSTOMER for the disposal of their empty
drums.  In the event that KMTEX has to dispose of any drums, there will be a
charge of $*** per drum.

 
§
Anytime CUSTOMER requests a nitrogen roll on a take there will be a charge of
$*** per hour.

 
§
It will be the responsibility of the CUSTOMER for the disposal of their empty
drums.  In the event that KMTEX has to dispose of any drums, there will be a
charge of $*** per drum.

 
o
Shipping Charges for samples and other customer requested shipments will be
billed at ***

3.           Miscellaneous

All other provisions of the Processing Agreement not specifically amended herein
shall remain the same and shall be in full force and effect.
 
 

 
 
3

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This 2nd Amendment may be executed in any number of counterparts, each of which
when so executed and delivered shall be deemed an original, and such
counterparts together shall constitute one and the same instrument.

WITNESS WHEREOF, the parties hereto have caused this Amendment to be signed by
their duly authorized representative effective on January 1, 2016.

VERTEX ENERGY, INC.

By:  /s/ Matthew Dupay                             
                                                                                                

Name:  Matthew Dupay                              
                                                                                     

Title:  Manager of Refining and
Marketing                                                                                     

Date:  12/3/15                                              
                                                      

KMTEX LLC.

By:  /s/ Will Baker                                        
                                                      
Name:  Will Baker                                            

Title:  Business Development Manager      

Date:  12/2/15                                               
 
 
 
 
 
 
 
                                                      
 
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