Document:

Vertex Energy, Inc 8-K

 

Exhibit 10.2

 

 

 

FIRST
AMENDMENT TO REGISTRATION RIGHTS AND LOCK-UP AGREEMENT

 

This
First Amendment to the Registration Rights and Lock-Up Agreement (this “First Amendment”) is entered into on
this 1st day of July, 2021 (the “Effective Date”), by and among Vertex Energy, Inc., a Nevada corporation (the
“Company”), and Tensile Capital Partners Master Fund LP, a Cayman Islands exempted limited partnership (the
“Holder”).

WHEREAS,
the Holder previously purchased (a) 1,500,000 shares of the common stock, $0.001 par value per share (the “Common Stock”
and the “Subscription Shares”) of the Company, and (b) warrants to purchase 1,500,000 shares of the Common
Stock of the Company at an exercise price of $2.25 per share (the “Warrants”), pursuant to the Holder’s
entry into a Subscription Agreement with the Company (the “Subscription Agreement”);

WHEREAS,
contemporaneously with said purchase Holder and the Company entered into that certain Registration Rights and Lock-up Agreement, dated
July 25, 2019 (the “RRLA”); and

WHEREAS,
Holder and the Company wish to amend the RRLA to provide for an increased permitted weekly sale by Holder of shares.

NOW,
THEREFORE, in consideration of the foregoing, the mutual promises and agreements set forth herein, and other valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

	1.	Volume
                                            Limitation.

The
definition of Quarterly Volume in the RRLA is hereby deleted, and a new definition is substituted in its place, as follows:

“Weekly
Volume” means 500,000 shares of the Company’s Common Stock per week, as adjusted equitably for any stock splits,
stock dividends or recapitalizations completed by the Company.

Section
2(b) of the RRLA is hereby deleted, and the following substituted in its place:

“The
Holder hereby agrees that, except as set forth in Section 2(d) below, for a period of four (4) years from the end of the Initial Lock-Up
Period until the Expiration Date, without the prior written consent of the Company, the Holder will not Dispose of more than the Weekly
Volume of Shares in any seven-day period (the “Volume Limitation” and together with the Initial Lock-Up, the “Lock-Up”).

 

    	 	 	 

    	 

    
 

	2.	Counterparts,
                                            Effect of Facsimile, Emailed and Photocopied Signatures. 

This
First Amendment and any signed agreement or instrument entered into in connection with this First Amendment, and any amendments hereto
or thereto, may be executed in one or more counterparts, all of which shall constitute one and the same instrument. Any such counterpart,
to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif, .jpeg or similar attachment to electronic mail (email)
or downloaded from a website or data room (any such delivery, an “Electronic Delivery”) shall be treated in
all manner and respects as an original executed counterpart and shall be considered to have the same binding legal effect as if it were
the original signed version thereof delivered in person. At the request of any party, each other party shall re execute the original
form of this Agreement and deliver such form to all other parties. No party shall raise the use of Electronic Delivery to deliver a signature
or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a
defense to the formation of a contract, and each such party forever waives any such defense, except to the extent such defense relates
to lack of authenticity.

 

	3.	Ratification.

 

Except
as expressly modified by this First Amendment, the Parties hereby confirm, ratify and agree that the RRLA remains in full force and effect. 

 

 

 

 

 

 

 

 

[Remainder
of page left intentionally blank. Signature page follows.]

 

 

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.        

	 	“COMPANYrdquo;:
	 	 
	 	 
	 	VERTEX
    ENERGY, INC.
	 	 
	 	 
	 	By:	/s/ Benjamin
P. Cowart	 
	 	Name:   	Benjamin P. Cowart
	 	Title:     	President/CEO
	 	
	 	 
	 	“HOLDER”:
	 	 
	 	 
	 	TENSILE
CAPITAL PARTNERS MASTER FUND LP 

	 	 
	 	 
	 	By:	/s/ Doug Dossey	 
	 	Name:	Doug Dossey	 
	 	Title:	Authorized Signatory	 
	 	 
	 	 
	 	 
	 	Address
for Notice:
	 	 
	 	 	Tensile Capital Management LP	 
	 	 	700 Larkspur Landing, Suite 255	 
	 	 	Larkspur, CA 94939	 
	 	 	415-830-8172	 
	 	 	ddossey@tensilecapital.com	 
	 	 
	 	 
	 	With
a copy to (which shall not constitute notice):
	 	 
	 	 	Noah Boyens

 nboyens@kirkland.comVertex Energy, Inc 8-K

 

Exhibit 10.3

 

SIXTH AMENDMENT TO CREDIT AGREEMENT

 

THIS SIXTH AMENDMENT
TO CREDIT AGREEMENT (this “Agreement”) is entered into as of January 18, 2021 by and among VERTEX ENERGY,
INC., a Nevada corporation (“Parent”), VERTEX ENERGY OPERATING, LLC, a Texas limited liability company (the
“Lead Borrower”), the other Borrowers signatory hereto, ENCINA BUSINESS CREDIT, LLC, as Agent, and the Lenders
signatory hereto.

 

W I T N E S E T H:

 

WHEREAS, Parent, the
Lead Borrower, the other Loan Parties, Agent and the Lenders from time to time party thereto are parties to that certain ABL Credit
Agreement dated as of February 1, 2017 (as amended prior to the date hereof and as it may be further amended, restated, supplemented
or modified from time to time, the “Credit Agreement”; unless otherwise defined herein, capitalized terms used
herein that are not otherwise defined herein shall have the respective meanings assigned to such terms in the Credit Agreement);
and

 

WHEREAS, the Loan Parties
have requested that the Agent and Lenders amend certain provisions of the Credit Agreement, and subject to the satisfaction of
the conditions set forth herein, the Agent and the Lenders signatory hereto are willing to do so, on the terms set forth herein.

 

NOW, THEREFORE, in
consideration of the mutual agreements, provisions and covenants contained herein, the parties agree as follows:

 

1.             Amendments to Credit Agreement. Upon satisfaction of the conditions set forth in Section 2 hereof,
the Credit Agreement is hereby amended as follows:

 

		(a)	Section 6.02(c) of the Credit Agreement is hereby amended and restated to read as follows:

 

“(c) (i)
on the third Business Day of each week, and on the last Business Day of each month, a Borrowing Base Certificate showing the Borrowing
Base as of the close of business as of the last day of the immediately preceding week, each Borrowing Base Certificate to be certified
as complete and correct by a Responsible Officer of the Lead Borrower; and (ii) on the third Business Day of each week (or daily
if Agent shall request), an update of daily sales during such week including supporting detail from sales journals and other records;
provided that Agent may suspend or make less frequent such sales reporting under this clause (ii) to the extent Agent deems,
in its permitted discretion, Availability to be sufficient to warrant less frequent reporting of sales.

 

     

     

    

 

		(b)	Section 7.16 of the Credit Agreement is hereby amended and restated to read as follows:

 

“7.16       Minimum
Availability. Permit Availability at any time to be less than (a) $1,000,000 at any time during the period commencing on December
31, 2020 through and including March 31, 2021 and (b) $2,000,000 at any time from and after April 1, 2021.”

 

2.             Conditions. The effectiveness of this Agreement is subject to the satisfaction of the following conditions
precedent:

 

a.     the execution and delivery of this Agreement by each Loan Party, Agent and the Lenders; and

 

b.    the truth and accuracy of the representations and warranties contained in Section 3 hereof.

 

3.             Representations and Warranties. Each Loan Party hereby represents and warrants to Agent and each Lender as
follows:

 

a.     the execution, delivery and performance by such Loan Party of this Agreement has been duly authorized by all necessary
corporate or other organizational action, and does not and will not (a) contravene the terms of any of such Person’s Organization
Documents; (b) conflict with or result in any breach, termination, or contravention of, or constitute a default under, or
require any payment to be made under (i) any Material Contract or any Material Indebtedness to which such Person is a party or
affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree
of any Governmental Authority or any arbitral award to which such Person or its property is subject; (c) result in or require the
creation of any Lien upon any asset of such Loan Party (other than Liens in favor of the Agent under the Security Documents); or
(d) violate any Law;

 

b.    such Loan Party has all requisite power and authority to execute, deliver and perform its obligations under this
Agreement and the Credit Agreement, as amended hereby;

 

c.     this Agreement constitutes a legal, valid and binding obligation of such Loan Party, enforceable against such Loan
Party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding
in equity or at law;

 

d.    after giving effect to this Agreement and the transactions contemplated hereby, each of the representations and warranties
of such Loan Party contained herein, in Article V of the Credit Agreement or in any other Loan Document are true and correct
in all material respects on and as of the date hereof, except (i) to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct as of such earlier date, (ii) in the case of any representation
and warranty qualified by materiality, they shall be true and correct in all respects and (iii) for purposes of this Section
3(d), the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall
be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the
Credit Agreement; and

 

    2

     

    

 

e.   after giving effect to this Agreement, no Default or Event of Default has occurred and is continuing or would result
from the transactions contemplated hereby.

 

4.             No Modification. Except as expressly set forth herein, nothing contained herein shall be deemed to constitute
a waiver of compliance with any term or condition contained in the Credit Agreement or any of the other Loan Documents or constitute
a course of conduct or dealing among the parties. Except as expressly stated herein, the Agent and Lenders reserve all rights,
privileges and remedies under the Loan Documents. Except as amended or consented to hereby, the Credit Agreement and other Loan
Documents remain unmodified and in full force and effect. All references in the Loan Documents to the Credit Agreement shall be
deemed to be references to the Credit Agreement as modified hereby. This Agreement shall constitute a Loan Document.

 

5.             Counterparts. This Agreement may be executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof
and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except
as provided in Section 3, this Agreement shall become effective when it shall have been executed by the Agent and when the
Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy, pdf or other electronic transmission shall
be as effective as delivery of a manually executed counterpart of this Agreement.

 

6.             Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby, except that no Loan Party may assign or otherwise
transfer any of its rights or obligations hereunder or under any other Loan Document without the prior written consent of the Agent
and each Lender.

 

7.             Governing Law. This Agreement and any claims, controversy, dispute or cause of action (whether in contract
or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions contemplated hereby shall be
governed by, and construed in accordance with, the law of the State of Illinois.

 

8.             Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby and
(b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.
The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

 

    3

     

    

 

9.             Section Headings. Section headings herein are included for convenience of reference only and shall not affect
the interpretation of this Agreement.

 

10.           Reaffirmation. Each of the Loan Parties as debtor, grantor, pledgor, guarantor, assignor, or in other any
other similar capacity in which such Loan Party grants liens or security interests in its property or otherwise acts as accommodation
party or guarantor, as the case may be, hereby (i) ratifies and reaffirms all of its payment and performance obligations, contingent
or otherwise, under each of the Loan Documents to which it is a party (after giving effect hereto) and (ii) to the extent such
Loan Party granted liens on or security interests in any of its property pursuant to any such Loan Document as security for or
otherwise guaranteed the Borrower’s Obligations under or with respect to the Loan Documents, ratifies and reaffirms such
guarantee and grant of security interests and liens and confirms and agrees that such security interests and liens hereafter secure
all of the Obligations as amended hereby. Each of the Loan Parties hereby consents to this Agreement and acknowledges that each
of the Loan Documents remains in full force and effect and is hereby ratified and reaffirmed. The execution of this Agreement shall
not operate as a waiver of any right, power or remedy of the Agent or Lenders, constitute a waiver of any provision of any of the
Loan Documents or serve to effect a novation of the Obligations.

 

11.           Release of Claims. In consideration of the Lenders’ and the Agent’s agreements contained in
this Agreement, each Loan Party hereby irrevocably releases and forever discharge the Lenders and the Agent and their affiliates,
subsidiaries, successors, assigns, directors, officers, employees, agents, consultants and attorneys (each, a “Released
Person”) of and from any and all claims, suits, actions, investigations, proceedings or demands, whether based in contract,
tort, implied or express warranty, strict liability, criminal or civil statute or common law of any kind or character, known or
unknown, which such Loan Party ever had or now has against Agent, any Lender or any other Released Person which relates, directly
or indirectly, to any acts or omissions of Agent, any Lender or any other Released Person relating to the Credit Agreement or any
other Loan Document on or prior to the date hereof.

 

[Signature pages follow.]

 

    4

     

    

 

IN WITNESS WHEREOF,
each of the undersigned has executed this Agreement as of the date set forth above.

 

Lead Borrower:

 

	VERTEX ENERGY OPERATING, LLC	 	 
	 	 	 
	By:	/s/ Chris Carlson	 	 	 
	 	Name:	Chris Carlson	 	 	 	 
	 	Its:	CFO	 	 	 	 
	 	 	 	 	 	 	 

 

Additional
Borrowers:

 

	BANGO OIL LLC	 	VERTEX RECOVERY MANAGEMENT LA, LLC
	 	 	 
	By:	/s/ Chris Carlson	 	By:	/s/ Chris Carlson
	 	Name:	Chris Carlson	 	 	Name:	Chris Carlson
	 	Its:	CFO	 	 	Its:	CFO
	 	 	 	 	 	 	 

 

	VERTEX REFINING NV, LLC	 	VERTEX REFINING LA, LLC
	 	 	 
	By:	/s/ Chris Carlson	 	By:	/s/ Chris Carlson
	 	Name:	Chris Carlson	 	 	Name:	Chris Carlson
	 	Its:	CFO	 	 	Its:	CFO
	 	 	 	 	 	 	 

 

	 	 	VERTEX II GP, LLC
	 	 	 
	 	 	 	By:	/s/ Chris Carlson
	 	 	 	 	 	Name:	Chris Carlson
	 	 	 	 	 	Its:	CFO
	 	 	 	 	 	 	 

 

	VERTEX MERGER SUB, LLC	 	VERTEX ACQUISITION SUB, LLC
	 	 	 
	By:	/s/ Chris Carlson	 	By:	/s/ Chris Carlson
	 	Name:	Chris Carlson	 	 	Name:	Chris Carlson
	 	Its:	CFO	 	 	Its:	CFO
	 	 	 	 	 	 	 

 

 

[Signature Page to Sixth Amendment to Credit Agreement]

 

     

     

    

 

	CEDAR MARINE TERMINALS, LP	 	CROSSROAD CARRIERS, L.P.
	 	 	 
	By:	/s/ Chris Carlson	 	By:	/s/ Chris Carlson
	 	Name:	Chris Carlson	 	 	Name:	Chris Carlson
	 	Its:	CFO	 	 	Its:	CFO
	 	 	 	 	 	 	 

 

	VERTEX RECOVERY, L.P.	 	H&H OIL, L.P.
	 	 	 
	By:	/s/ Chris Carlson	 	By:	/s/ Chris Carlson
	 	Name:	Chris Carlson	 	 	Name:	Chris Carlson
	 	Its:	CFO	 	 	Its:	CFO
	 	 	 	 	 	 	 

 

	 	 	VERTEX RECOVERY MANAGEMENT, LLC
	 	 	 
	 	 	 	By:	/s/ Chris Carlson
	 	 	 	 	 	Name:	Chris Carlson
	 	 	 	 	 	Its:	CFO
	 	 	 	 	 	 	 

 

	 	 	 
	 	 	VERTEX ENERGY, INC., as Parent and as a Guarantor
		 	 
	 	 	 	By:	/s/ Chris Carlson
	 	 	 	 	 	Name:	Chris Carlson
	 	 	 	 	 	Title:	CFO
	 	 	 	 	 	 	 

 

 

[Signature Page to Sixth Amendment to Credit Agreement]

 

     

     

    

 

	 	AGENT:
	 	 
	 	ENCINA BUSINESS CREDIT, LLC, as Agent
	 	 	 
	 	By:	/s/ Daniel Ross
	 	Name:	Daniel Ross
	 	Title: 	Its Duly Authorized Signatory

 

[Signature Page to Sixth Amendment to Credit Agreement]

 

     

     

    

 

	 	 	 	 
	 	ENCINA BUSINESS CREDIT, LLC, as Agent	,
	 	as a Lender	 	 
	 	 	 	 	 
	 	By:	/s/ Daniel Ross	 	 
	 	Name:	Daniel Ross	 	 
	 	Title:	Its Duly Authorized Signatory	 	 

 

[Signature Page to Sixth Amendment to Credit Agreement]

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