Document:

Vertex Energy, Inc. S-8 

 

Exhibit
4.3

 

VERTEX
ENERGY, INC.

 

2019
EQUITY INCENTIVE PLAN

 

NOTICE
OF RESTRICTED STOCK GRANT

 

Capitalized
but otherwise undefined terms in this Notice of Restricted Stock Grant and the attached Restricted Stock Grant Agreement shall
have the same defined meanings as in the Vertex Energy, Inc. 2019 Equity Incentive Plan (as amended from time to time)(the “Plan”).

 

Grantee
Name: _______________________________________________

 

Address:
_______________________________________________

 

You
have been granted Restricted Stock subject to the terms and conditions of the Plan and the attached Restricted Stock Grant Agreement,
as follows:

 

Date
of Grant: _______________________________________________

 

Vesting
Commencement Date:___________________________________

 

Price
Per Share:______________________________________________

 

Total
Number of Shares Granted:_________________________________

 

Total
Value of Shares Granted:___________________________________

 

Total
Purchase Price:________________________________________

 

Agreement
Date:_____________________________________________

 

Vesting
Schedule: __________________________________________

 

 

    
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2019 Restricted Stock Grant Agreement

     

    

 

VERTEX
ENERGY, INC.

 

2019
EQUITY INCENTIVE PLAN

 

RESTRICTED
STOCK GRANT AGREEMENT

 

This RESTRICTED
STOCK GRANT AGREEMENT (“Agreement”), dated as of the Agreement Date specified on the Notice
of Restricted Stock Grant is made by and between Vertex Energy, Inc., a Nevada corporation (the “Company”),
and the grantee named in the Notice of Restricted Stock Grant (the “Grantee,” which term
as used herein shall be deemed to include any successor to Grantee by will or by the laws of descent and distribution, unless
the context shall otherwise require).

 

BACKGROUND

 

Pursuant
to the Plan, the Board (or an authorized Committee thereof), approved the issuance to Grantee, effective as of the date set forth
above, of an award of the number of shares of Restricted Stock as is set forth in the attached Notice of Restricted Stock Grant
(which is expressly incorporated herein and made a part hereof, the “Notice of Restricted Stock Grant”)
at the purchase price per share of Restricted Stock (the “Purchase Price”), if any, set forth in the
attached Notice of Restricted Stock Grant, upon the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, in consideration of the mutual premises and undertakings hereinafter set forth, the parties agree as follows:

 

1.              Grant
and Purchase of Restricted Stock. The Company hereby grants to Grantee, and Grantee hereby accepts the Restricted Stock
set forth in the Notice of Restricted Stock Grant, subject to the payment by Grantee of the total purchase price, if any, set
forth in the Notice of Restricted Stock Grant.

 

2.              Stockholder
Rights.

 

(a)            Voting
Rights. Until such time as all or any part of the Restricted Stock are forfeited to the Company under this Agreement, if ever,
Grantee (or any successor in interest) has the rights of a stockholder, including voting rights, with respect to the Restricted
Stock subject, however, to the transfer restrictions or any other restrictions set forth in the Plan.

 

(b)            Dividends
and Other Distributions. During the period of restriction, Participants holding Restricted Stock are entitled to all regular
cash dividends or other distributions paid with respect to all shares while they are so held. If any such dividends or distributions
are paid in shares, such shares will be subject to the same restrictions on transferability and forfeitability as the Restricted
Stock with respect to which they were paid.

 

3.              Vesting
of Restricted Stock.

 

(a)            The
Restricted Stock are restricted and subject to forfeiture until vested. The Restricted Stock which have vested and are no longer
subject to forfeiture are referred to as “Vested Shares.” All Restricted Stock which have not become
Vested Shares are referred to as “Nonvested Shares.”

 

(b)            Restricted
Stock will vest and become nonforfeitable in accordance with the vesting schedule contained in the Notice of Restricted Stock
Grant.

 

(c)            Any
Nonvested Shares of Grantee will automatically vest and become nonforfeitable if Grantee’s service with the Company ceases
owing to the Grantee’s (a) death, (b) Disability, or (c) Retirement, unless the Board (or an authorized committee thereof)
provides otherwise.

 

 

 

(d)           In
the event of a Change of Control, the Board (or an authorized committee thereof), in its discretion, may accelerate the time at
which all or any portion of Grantee’s Restricted Stock will vest.

 

    
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2019 Restricted Stock Grant Agreement

     

    

 

(e)          Terms
used in Section 3 and Section 4 have the following meanings:

 

(i)           “Cause”
has the meaning ascribed to such term or words of similar import in Grantee’s written employment or service contract with
the Company or its subsidiaries and, in the absence of such agreement or definition, means Grantee’s (i) conviction
of, or plea of nolo contendere to, a felony or crime involving moral turpitude; (ii) fraud on or misappropriation
of any funds or property of the Company or its subsidiaries, or any affiliate, customer or vendor; (iii) personal dishonesty,
incompetence, willful misconduct, willful violation of any law, rule or regulation (other than minor traffic violations or similar
offenses), or breach of fiduciary duty which involves personal profit; (iv) willful misconduct in connection with Grantee’s
duties or willful failure to perform Grantee’s responsibilities in the best interests of the Company or its subsidiaries;
(v) illegal use or distribution of drugs; (vi) violation of any material rule, regulation, procedure or policy of the
Company or its subsidiaries, the violation of which could have a material detriment to the Company; or (vii) material breach
of any provision of any employment, non-disclosure, non-competition, non-solicitation or other similar agreement executed by Grantee
for the benefit of the Company or its subsidiaries, all as reasonably determined by the Board of Directors of the Company, which
determination will be conclusive.

 

(ii)          “Retirement”
means Grantee’s retirement from Company employ at or above the age 65 as determined in accordance with the policies of the
Company or its subsidiaries, if any, in good faith by the Board of Directors of the Company, which determination will be final
and binding on all parties concerned.

 

(f)           Nonvested
Shares may not be sold, transferred, assigned, pledged, or otherwise disposed of, directly or indirectly, whether by operation
of law or otherwise. The restrictions set forth in this Section will terminate upon a Change of Control.

 

4.            Forfeiture
of Nonvested Shares. Except as provided herein, if Grantee’s service with the Company ceases for any reason other than
Grantee’s (a) death, (b) Disability, or (c) Retirement, any Nonvested Shares will be automatically forfeited to the Company;
provided, however, that the Board (or an authorized committee thereof) may cause any Nonvested Shares immediately to vest and
become nonforfeitable if Grantee’s service with the Company is terminated by the Company without Cause.

 

(a)          Legend.
Each certificate representing Restricted Stock granted pursuant to the Notice of Restricted Stock Grant may bear a legend substantially
as follows:

 

“THE
SALE OR OTHER TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE, WHETHER VOLUNTARY, INVOLUNTARY OR BY OPERATION OF LAW, IS
SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN THE VERTEX ENERGY, INC. 2019 EQUITY INCENTIVE PLAN AND IN A RESTRICTED
SHARE GRANT AGREEMENT. A COPY OF SUCH PLAN AND SUCH AGREEMENT MAY BE OBTAINED FROM VERTEX ENERGY, INC.”

 

(b)          Escrow
of Nonvested Shares. The Company has the right to retain the certificates representing Nonvested Shares in the Company’s
possession until such time as all restrictions applicable to such shares have been satisfied.

 

(c)          Removal
of Restrictions. The Participant is entitled to have the legend removed from certificates representing Vested Shares.

 

5.            Recapitalizations,
Exchanges, Mergers, Etc. The provisions of this Agreement apply to the full extent set forth herein with respect to any
and all shares of capital stock of the Company or successor of the Company which may be issued in respect of, in exchange for,
or in substitution for the Restricted Stock by reason of any stock dividend, split, reverse split, combination, recapitalization,
reclassification, merger, consolidation or otherwise which does not terminate this Agreement. Except as otherwise provided herein,
this Agreement is not intended to confer upon any other person except the parties hereto any rights or remedies hereunder.

 

    
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2019 Restricted Stock Grant Agreement

     

    

 

6.             Grantee
Representations.

 

Grantee
represents to the Company the following:

 

(a)            Restrictions
on Transfer. Grantee acknowledges that the Restricted Stock to be issued to Grantee must be held indefinitely unless subsequently
registered and qualified under the Securities Act of 1933, as amended (the “Securities Act”) or unless
an exemption from registration and qualification is otherwise available. In addition, Grantee understands that the certificate
representing the Restricted Stock will be imprinted with a legend which prohibits the transfer of such Restricted Stock unless
they are sold in a transaction in compliance with the Securities Act or are registered and qualified or such registration and
qualification are not required in the opinion of counsel acceptable to the Company.

 

(b)            Relationship
to the Company; Experience. Grantee either has a preexisting business or personal relationship with the Company or any of
its officers, directors or controlling persons or, by reason of Grantee’s business or financial experience or the business
or financial experience of Grantee’s personal representative(s), if any, who are unaffiliated with and who are not compensated
by the Company or any affiliate or selling agent, directly or indirectly, has the capacity to protect Grantee’s own interests
in connection with Grantee’s acquisition of the Restricted Stock to be issued to Grantee hereunder. Grantee and/or Grantee’s
personal representative(s) have such knowledge and experience in financial, tax and business matters to enable Grantee and/or
them to utilize the information made available to Grantee and/or them in connection with the acquisition of the Restricted Stock
to evaluate the merits and risks of the prospective investment and to make an informed investment decision with respect thereto.

 

(c)            Grantee’s
Liquidity. In reaching the decision to invest in the Restricted Stock, Grantee has carefully evaluated Grantee’s financial
resources and investment position and the risks associated with this investment, and Grantee acknowledges that Grantee is able
to bear the economic risks of the investment. Grantee (i) has adequate means of providing for Grantee’s current needs
and possible personal contingencies, (ii) has no need for liquidity in Grantee’s investment, (iii) is able to
bear the substantial economic risks of an investment in the Restricted Stock for an indefinite period and (iv) at the present
time, can afford a complete loss of such investment. Grantee’s commitment to investments which are not readily marketable
is not disproportionate to Grantee’s net worth and Grantee’s investment in the Restricted Stock will not cause Grantee’s
overall commitment to become excessive.

 

(d)           Access
to Data. Grantee acknowledges that during the course of this transaction and before deciding to acquire the Restricted Stock,
Grantee has been provided with financial and other written information about the Company. Grantee has been given the opportunity
by the Company to obtain any information and ask questions concerning the Company, the Restricted Stock, and Grantee’s investment
that Grantee felt necessary; and to the extent Grantee availed himself/herself of that opportunity, Grantee has received satisfactory
information and answers concerning the business and financial condition of the Company in response to all inquiries in respect
thereof.

 

(e)            Risks.
Grantee acknowledges and understands that (i) an investment in the Company constitutes a high risk, (ii) the Restricted
Stock are highly speculative, and (iii) there can be no assurance as to what investment return, if any, there may be. Grantee
is aware that the Company may issue additional securities in the future which could result in the dilution of Grantee’s
ownership interest in the Company.

 

(f)             Valid
Agreement. This Agreement when executed and delivered by Grantee will constitute a valid and legally binding obligation of
Grantee which is enforceable in accordance with its terms.

 

(g)            Residence.
The address set forth on the Notice of Restricted Stock Grant is Grantee’s current address and accurately sets forth Grantee’s
place of residence.

 

(h)            Tax
Consequences. Grantee has reviewed with Grantee’s own tax advisors the federal, state, local and foreign tax consequences
of this investment and the transactions contemplated by this Agreement. Grantee is relying solely on such advisors and not on
any statements or representations of the Company or any of its agents. Grantee understands that Grantee (and not the Company)
is responsible for Grantee’s own tax liability that may arise as a result of the transactions contemplated by this Agreement.
Grantee understands that Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”),
taxes as ordinary income the difference between the purchase price for the Restricted Stock and the fair market value of the Restricted
Stock as of the date any restrictions on the Restricted Stock lapse. Grantee understands that Grantee may elect to be taxed at
the time the Restricted Stock is purchased rather than when and as the restrictions lapse by filing an election under Section 83(b)
of the Code with the Internal Revenue Service within 30 days from the date of purchase. The form for making this election is attached
as Exhibit A hereto.

 

    
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2019 Restricted Stock Grant Agreement

     

    

 

GRANTEE
ACKNOWLEDGES THAT IT IS GRANTEE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY ANY ELECTION UNDER SECTION
83(b), EVEN IF GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON GRANTEE’S BEHALF.

 

7.              No
Employment Contract Created. The issuance of the Restricted Stock is not to be construed as granting to Grantee any right
with respect to continuance of employment or any service with the Company or any of its subsidiaries. The right of the Company
or any of its subsidiaries to terminate at will Grantee’s employment or terminate Grantee’s service at any time (whether
by dismissal, discharge or otherwise), with or without cause, is specifically reserved, subject to any other written employment
or other agreement to which the Company and Grantee may be a party.

 

8.             Tax
Withholding. The Company has the power and the right to deduct or withhold, or require Grantee to remit to the Company,
an amount sufficient to satisfy Federal, state and local taxes (including the Grantee’s FICA obligation) required by law
to be withheld with respect to the grant and vesting of the Restricted Stock.

 

9.              Interpretation.
The Restricted Stock are being issued pursuant to the terms of the Plan, and are to be interpreted in accordance therewith. The
Board (or an authorized committee thereof) will interpret and construe this Agreement and the Plan, and any action, decision,
interpretation or determination made in good faith by the Board (or an authorized committee thereof) will be final and binding
on the Company and Grantee.

 

10.            Notices.
All notices or other communications which are required or permitted hereunder will be in writing and sufficient if (i) personally
delivered or sent by telecopy, (ii) sent by nationally-recognized overnight courier or (iii) sent by registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:

 

(a)            if
to the Grantee, to the address (or telecopy number) set forth on the Notice of Grant; and

 

(b)            if
to the Company, to its principal executive office as specified in any report filed by the Company with the Securities and Exchange
Commission or to such address as the Company may have specified to the Grantee in writing, Attention: Corporate Secretary;

 

or
to such other address as the party to whom notice is to be given may have furnished to the other party in writing in accordance
herewith. Any such communication will be deemed to have been given (i) when delivered, if personally delivered, or when telecopied,
if telecopied, (ii) on the first Business Day (as hereinafter defined) after dispatch, if sent by nationally-recognized overnight
courier and (iii) on the fifth Business Day following the date on which the piece of mail containing such communication is posted,
if sent by mail. As used herein, “Business Day” means a day that is not a Saturday, Sunday or a day
on which banking institutions in the city to which the notice or communication is to be sent are not required to be open.

 

11.            Specific
Performance. Grantee expressly agrees that the Company will be irreparably damaged if the provisions of this Agreement
and the Plan are not specifically enforced. Upon a breach or threatened breach of the terms, covenants and/or conditions of this
Agreement or the Plan by Grantee, the Company will, in addition to all other remedies, be entitled to a temporary or permanent
injunction, without showing any actual damage, and/or decree for specific performance, in accordance with the provisions hereof
and thereof. The Board (or an authorized committee thereof) has the power to determine what constitutes a breach or threatened
breach of this Agreement or the Plan. Any such determinations will be final and conclusive and binding upon Grantee.

 

    
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2019 Restricted Stock Grant Agreement

     

    

 

12.            No
Waiver. No waiver of any breach or condition of this Agreement will be deemed to be a waiver of any other or subsequent
breach or condition, whether of like or different nature.

 

13.           Grantee
Undertaking. Grantee hereby agrees to take whatever additional actions and execute whatever additional documents the Company
may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions
imposed on Grantee pursuant to the express provisions of this Agreement.

 

14.            Modification
of Rights. The rights of Grantee are subject to modification and termination in certain events as provided in this Agreement
and the Plan.

 

15.            Governing
Law. This Agreement is governed by, and construed in accordance with, the laws of the State of Nevada, without giving
effect to its conflict or choice of law principles that might otherwise refer construction or interpretation of this Agreement
to the substantive law of another jurisdiction.

 

16.           Counterparts;
Facsimile Execution. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an
original, but all of which together will constitute one and the same instrument. Facsimile execution and delivery of this
Agreement is legal, valid and binding execution and delivery for all purposes.

 

17.           Entire
Agreement. This Agreement (including the Notice of Restricted Stock Grant) and the Plan, constitute the entire agreement
between the parties with respect to the subject matter hereof, and supersedes all previously written or oral negotiations, commitments,
representations and agreements with respect thereto.

 

18.           Severability.
In the event one or more of the provisions of this Agreement should, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability will not affect any other provisions of this Agreement, and this
Agreement will be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

 

19.           WAIVER
OF JURY TRIAL. THE GRANTEE HEREBY EXPRESSLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

[Signature
Page Follows]

 

    
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2019 Restricted Stock Grant Agreement

     

    

 

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

 

VERTEX
ENERGY, INC.

  

By:________________________________________

Name:___________________________________

Title:____________________________________

  

GRANTEE:

  

__________________________________________

Name:

 

    
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2019 Restricted Stock Grant Agreement

     

    

 

 

SPOUSE’S
CONSENT TO AGREEMENT

(Required
where Grantee resides in a community property state)

 

I
acknowledge that I have read the Agreement and the Plan and that I know and understand the contents of both. I am aware that my
spouse has agreed therein to the imposition of certain forfeiture provisions and restrictions on transferability with respect
to the Restricted Stock that are the subject of the Agreement, including with respect to my community interest therein, if any,
on the occurrence of certain events described in the Agreement. I hereby consent to and approve of the provisions of the Agreement,
and agree that I will abide by the Agreement and bequeath any interest in the Restricted Stock which represents a community interest
of mine to my spouse or to a trust subject to my spouse’s control or for my spouse’s benefit or the benefit of our children if
I predecease my spouse.

  

Dated:
____________________________________

  

____________________________________

Signature

____________________________________

Print
Name

 

    
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2019 Restricted Stock Grant Agreement

     

    

 

Exhibit
A 

ELECTION
UNDER SECTION 83(b)

OF
THE INTERNAL REVENUE CODE OF 1986

 

The
undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in
the taxpayer’s gross income or alternative minimum taxable income, as the case may be, for the current taxable year, as
compensation for services the excess (if any) of the fair market value of the shares described below over the amount paid
for those shares:

 

1.       The
name, address, taxpayer identification number and taxable year of the undersigned are as follows:

 

	Taxpayer:	 	 
	Spouse:	 	 
	Name:	 	 
	Address:	 	 
	Identification No.:	 	 
	Taxable Year:	 	 

 

2.       The
property with respect to which the election is made is described as follows: __________ shares (the “Shares”)
of the Common Stock of Vertex Energy, Inc., a Nevada corporation (the “Company”).

 

3.       The
date on which the property was transferred is:___________________ ,______.

 

4.       The
property is subject to the following restrictions:

 

The
Shares may not be transferred and are subject to forfeiture under the terms of an agreement between the taxpayer and the Company.
These restrictions lapse upon the satisfaction of certain conditions contained in such agreement.

 

5.       The
fair market value of the property at the time of transfer (determined without regard to any restriction other than a nonlapse
restriction as defined in § 1.83-3(h) of the Income Tax Regulations) is: $_______ per share x ________ shares =
$___________.

 

6.       For
the property transferred, the undersigned paid $______ per share x _________ shares = $______________.

 

7.       The
amount to include in gross income is $______________. [The result of the amount reported in Item 5 minus the amount reported
in Item 6.]

 

The
undersigned taxpayer will file this election with the Internal Revenue Service office with which taxpayer files his or her annual
income tax return not later than 30 days after the date of transfer of the property. A copy of the election also will be furnished
to the person for whom the services were performed. Additionally, the undersigned will include a copy of the election with his
or her income tax return for the taxable year in which the property is transferred. The undersigned is the person performing the
services in connection with which the property was transferred.

 

The
undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner.

 

Dated:
______________________, _____

Taxpayer

The
undersigned spouse of taxpayer joins in this election.

 

Dated:
______________________, _____

_________________________

Spouse
of Taxpayer

 

    
Page 9 of 9
2019 Restricted Stock Grant AgreementVertex Energy, Inc. S-8 

 

Exhibit
4.5

 

VERTEX
ENERGY, INC.

 

2020
EQUITY INCENTIVE PLAN

 

FORM
OF STOCK OPTION AGREEMENT

 

Unless
otherwise defined herein, the terms in the Stock Option Agreement (the “Option Agreement”) have the
same meanings as defined in the Vertex Energy, Inc. 2020 Equity Incentive Plan (as amended from time to time)(the “Plan”).

 

I.                NOTICE
OF STOCK OPTION GRANT

 

Optionee:  «Option_Holder»

 

Address: ___________________________________

 

You
have been granted an Option to purchase Common Stock of the Company (the “Option”), subject to the terms
and conditions of the Plan and this Option Agreement, as follows:

 

Grant
Date:  «Grant Date»

 

Vesting
Commencement Date:  «Vesting Start Date»

 

Exercise
Price per Share: $ «Exercise Price»

 

Total
Number of Shares Granted: «Options»

 

Total
Exercise Price: «Aggregate_Exercise_Price»

 

Type
of Option: «Incentive Stock Option/Non Qualified Stock Option» 

 

Expiration
Date: «Expiration Date»

 

Vesting
Schedule: 1/4th of such Options vest on the first, second, third and fourth anniversaries of the Grant
Date, subject to the terms hereof and the Plan.

 

To
the extent vested, this Option will be exercisable for three (3) months following the Termination of Service of Optionee, unless
termination is due to Optionee’s death or Disability, in which case this Option will be exercisable for twelve (12) months following
the Termination of Service of Optionee. In the event of termination due to Optionee’s death, the Company shall use commercially
reasonable efforts to notify Optionee’s estate of the exercisability of the Option following Optionee’s death. Notwithstanding
the foregoing sentence, in no event may this Option be exercised following the Termination of Service of Optionee as determined
by the Company’s Board to be for Cause or after the Expiration Date as provided above and this Option may be subject
to earlier termination as provided in the Plan.

 

“Cause”
has the meaning ascribed to such term or words of similar import in Optionee’s written employment or service contract with
the Company or its parent or any subsidiary and, in the absence of such agreement or definition, means Optionee’s (i) conviction
of, or plea of nolo contendere to, a felony or any other crime involving moral turpitude; (ii) fraud on or misappropriation
of any funds or property of the Company or its subsidiaries, or any affiliate, customer or vendor; (iii) personal dishonesty,
incompetence, willful misconduct, willful violation of any law, rule or regulation (other than minor traffic violations or similar
offenses), or breach of fiduciary duty which involves personal profit; (iv) willful misconduct in connection with Optionee’s
duties or willful failure to perform Optionee’s responsibilities in the best interests of the Company or its subsidiaries;
(v) illegal use or distribution of drugs; (vi) violation of any material rule, regulation, procedure or policy of the
Company or its subsidiaries, the violation of which could have a material detriment to the Company; or (vii) material breach
of any provision of any employment, non-disclosure, non-competition, non-solicitation or other similar agreement executed by Optionee
for the benefit of the Company or its subsidiaries, all as reasonably determined by the Company’s Board of Directors, which
determination will be conclusive.

 

    
2020 Stock Option Agreement
Page 1 of 9

     

    

 

Legends.

 

(a)            
All certificates representing the Shares issued upon exercise of this Option shall, prior to such date as the Plan and Common
Stock hereunder are covered by a valid Form S-8 or similar U.S. federal registration statement, where applicable, have endorsed
thereon the following legend:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED,
OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT
TO THE RELEVANT PROVISIONS OF U.S. FEDERAL, STATE AND FOREIGN SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER U.S. FEDERAL, STATE AND FOREIGN SECURITIES LAWS IS NOT REQUIRED.

 

(b)            
If the Option is an incentive stock option (ISO), then the following legend will be included:

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED UPON EXERCISE OF AN INCENTIVE STOCK OPTION, AND THE COMPANY MUST BE NOTIFIED
IF THE SHARES SHALL BE TRANSFERRED BEFORE THE LATER OF THE TWO (2) YEAR ANNIVERSARY OF THE DATE OF GRANT OF THE OPTION OR THE
ONE (1) YEAR ANNIVERSARY OF THE DATE ON WHICH THE OPTION WAS EXERCISED. THE REGISTERED HOLDER MAY RECOGNIZE ORDINARY INCOME IF
THE SHARES ARE TRANSFERRED BEFORE SUCH DATE.

 

II. AGREEMENT

 

1. Grant
of Option. The Administrator grants to the Optionee named in the Notice of Stock Option Grant in Part I of
this Option Agreement, an Option to purchase the number of Shares set forth in the Notice of Stock Option Grant, at the exercise
price per Share set forth in the Notice of Stock Option Grant (the “Exercise Price”), and subject to
the terms and conditions of the Plan, which is incorporated herein by reference. In the event of a conflict between the terms
and conditions of the Plan and this Option Agreement, the terms and conditions of the Plan prevail.

 

If
designated in the Notice of Stock Option Grant as an Incentive Stock Option, this Option is intended to qualify as an Incentive
Stock Option as defined in Code section 422. Nevertheless, to the extent that it exceeds the $100,000 rule of Code section 422(d),
this Option will be treated as a Nonstatutory/Non-Qualified Stock Option.

 

2. Exercise
of Option.

 

(a) Right
to Exercise. This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Stock
Option Grant and with the applicable provisions of the Plan and this Option Agreement.

 

    
2020 Stock Option Agreement
Page 2 of 9

     

    

 

(b) Method
of Exercise. This Option is exercisable by (i) delivery of an exercise notice in the form attached as Exhibit A (the
“Exercise Notice”) or in a manner and pursuant to procedures as the Administrator may determine, which
will state the election to exercise the Option, the number of Shares with respect to which the Option is being exercised, and
other representations and agreements as may be required by the Company and (ii) paying the Company in full the aggregate Exercise
Price as to all Shares being acquired, together with any applicable tax withholding.

 

This
Option will be deemed to be exercised upon receipt by the Company of a fully executed Exercise Notice accompanied by the aggregate
Exercise Price, together with any applicable tax withholding.

 

No
Shares will be issued pursuant to the exercise of an Option unless the issuance and exercise of Shares complies with applicable
state and federal laws (“Applicable Laws”). Assuming compliance, for income tax purposes the Shares
will be considered transferred to the Optionee on the date on which the Option is exercised with respect to the Shares.

 

3. Method
of Payment. The aggregate Exercise Price may be paid by any of the following, or a combination thereof, at the election of
the Optionee:

 

(a)
cash;

 

(b)
check;

 

(c)
to the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, a promissory note;

 

(d)
other shares of Common Stock, provided Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise
price of the Shares as to which said Option will be exercised;

 

(e)
by asking the Company to withhold Shares from the total Shares to be delivered upon exercise equal to the number of Shares having
a value equal to the aggregate Exercise Price of the Shares being acquired;

 

(f)
any combination of the foregoing methods of payment; or

 

(g) such
other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws.

 

4. Restrictions
on Exercise. This Option may not be exercised if the issuance of such Shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any Applicable Laws. The Company will be relieved of any liability
with respect to any delayed issuance of shares or its failure to issue shares if such delay or failure is necessary to comply
with Applicable Laws.

 

5. Non-Transferability
of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of Optionee only by Optionee. The terms of the Plan and this Option Agreement are binding
upon the executors, administrators, heirs, successors and assigns of the Optionee.

 

6. Term
of Option. This Option may be exercised only within the term set out in the Notice of Stock Option Grant, and may be exercised
during the term only in accordance with the Plan and the terms of this Option.

 

    
2020 Stock Option Agreement
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7. Tax
Obligations.

 

(a) Withholding
Taxes. Optionee agrees to arrange for the satisfaction of all Federal, state, local and foreign income and employment tax
withholding requirements applicable to the Option exercise. Optionee acknowledges and agrees that the Company may refuse to honor
the exercise and refuse to deliver the Shares if withholding amounts are not delivered at the time of exercise.

 

(b) Notice
of Disqualifying Disposition of ISO Shares. If the Option granted to Optionee is an Incentive Stock Option (“ISO”),
and if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the
date two (2) years after the Grant Date, or (ii) the date one (1) year after the date of exercise, the Optionee must immediately
notify the Company of the disposition in writing. Optionee agrees that Optionee may be subject to income tax withholding by the
Company on the compensation income recognized by the Optionee.

 

(c) Code
Section 409A. Under Code section 409A, an Option that was granted with a per Share exercise price that is determined
by the Internal Revenue Service (the “IRS”) to be less than the Fair Market Value of a Share on the
Grant Date (a “discount option”) may be considered deferred compensation. An Option that is a discount
option may result in (i) income recognition by the Optionee prior to the exercise of the Option, (ii) an additional twenty percent
(20%) tax, and (iii) potential penalty and interest charges. Optionee acknowledges that the Company cannot and has not guaranteed
that the IRS will agree that the per Share Exercise Price of this Option equals or exceeds Fair Market Value of a Share on the
Grant Date in a later examination. Optionee agrees that if the IRS determines that the Option was granted with a per Share exercise
price that was less than the Fair Market Value of a Share on the Grant Date, Optionee will be solely responsible for any and all
resulting tax consequences.

 

8. No
Guarantee of Continued Service. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE
HEREOF IS EARNED ONLY BY CONTINUING AS AN EMPLOYEE OR DIRECTOR AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING
OR RETAINING OPTIONEE) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER. OPTIONEE
FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET
FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE OR DIRECTOR FOR THE VESTING
PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR THE RIGHT OF THE COMPANY (OR
THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING OPTIONEE) TO TERMINATE OPTIONEE’S RELATIONSHIP AS AN EMPLOYEE OR DIRECTOR
AT ANY TIME, WITH OR WITHOUT CAUSE.

 

9. Notices.
All notices or other communications which are required or permitted hereunder will be in writing and sufficient if (i) personally
delivered or sent by telecopy, (ii) sent by nationally-recognized overnight courier or (iii) sent by registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:

 

(a)
if to the Optionee, to the address (or telecopy number) set forth on the Notice of Stock Option Grant; and

 

(b)
if to the Company, to its principal executive office as specified in any report filed by the Company with the Securities and Exchange
Commission or to such address as the Company may have specified to the Optionee in writing, Attention: Corporate Secretary;

 

or
to any other address as the party to whom notice is to be given may have furnished to the other party in writing in accordance
herewith. Any communication will be deemed to have been given (i) when delivered, if personally delivered, or when telecopied,
if telecopied, (ii) on the first Business Day (as hereinafter defined) after dispatch, if sent by nationally-recognized overnight
courier and (iii) on the fourth Business Day following the date on which the piece of mail containing the communication is posted,
if sent by mail. As used herein, “Business Day” means a day that is not a Saturday, Sunday or a day
on which banking institutions in the city to which the notice or communication is to be sent are not required to be open.

 

    
2020 Stock Option Agreement
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10. Specific
Performance. Optionee expressly agrees that the Company will be irreparably damaged if the provisions of this Option Agreement
and the Plan are not specifically enforced. Upon a breach or threatened breach of the terms, covenants and/or conditions of this
Option Agreement or the Plan by the Optionee, the Company will, in addition to all other remedies, be entitled to a temporary
or permanent injunction, without showing any actual damage, and/or decree for specific performance, in accordance with the provisions
hereof and thereof. The Administrator has the power to determine what constitutes a breach or threatened breach of this Option
Agreement or the Plan. The Administrator’s determinations will be final and conclusive and binding upon the Optionee.

 

11. No
Waiver. No waiver of any breach or condition of this Option Agreement will be deemed to be a waiver of any other or subsequent
breach or condition, whether of like or different nature.

 

12. Optionee
Undertaking. The Optionee agrees to take whatever additional actions and execute whatever additional documents the Company
may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions
imposed on the Optionee pursuant to the express provisions of this Option Agreement.

 

13. Modification
of Rights. The rights of the Optionee are subject to modification and termination in certain events as provided in this Option
Agreement and the Plan.

 

14. Governing
Law. This Agreement is governed by, and construed in accordance with, the laws of the State of Texas, without giving effect
to its conflict or choice of law principles that might otherwise refer construction or interpretation of this Agreement to the
substantive law of another jurisdiction.

 

15. Counterparts;
Facsimile Execution. This Option Agreement may be executed in one or more counterparts, each of which will be deemed to be
an original, but all of which together constitute one and the same instrument. Facsimile execution and delivery of this Option
Agreement is legal, valid and binding execution and delivery for all purposes.

 

16. Entire
Agreement. The Plan, this Option Agreement, and upon execution, the Exercise Notice, constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the
Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest
except by means of a writing signed by the Company and Optionee.

 

17. Severability.
In the event one or more of the provisions of this Option Agreement should, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provisions of this Option
Agreement, and this Option Agreement will be construed as if such invalid, illegal or unenforceable provision had never been contained
herein.

 

18. WAIVER
OF JURY TRIAL. THE OPTIONEE EXPRESSLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS OPTION AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN. 

 

[Remainder
of page left intentionally blank.]

 

    
2020 Stock Option Agreement
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Optionee
acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and
accepts this Option subject to all of the terms and provisions thereof. Optionee has reviewed the Plan and this Option in their
entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions
of the Option. Optionee agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator
upon any questions arising under the Plan or this Option. Optionee further agrees to notify the Company upon any change in the
residence address indicated below.

 

 

 

	OPTIONEE 	 	 	VERTEX
    ENERGY, INC.	 
	 	 	 	 	 
	 	 	 	 	 
	Signature	________________
	 	 	By:	 ________________

        
	 
	 	 	 	 	 
	Print Name:	«Option_Holder»	 	 	Print Name:	 ________________

        
	 
	 	 	 	 	 
	Address:	________________
	 	 	Address:	________________

        

        
	 
	 	________________	 	 	 	________________	 
	 	 	 	 	 	________________	 
	 	 	 	 	 
	 Date Signed:	________________

        
	 	 	Date Signed:	________________

        
	 

 

    
2020 Stock Option Agreement
Page 6 of 9

     

    

 

EXHIBIT
A

 

2020
EQUITY INCENTIVE PLAN

 

EXERCISE
NOTICE

 

Vertex
Energy, Inc.

1331
Gemini Street, Suite 250

Houston,
Texas 77058

 

Attention:
Vertex Energy, Inc., Corporate Secretary

 

1.
       Exercise of Option. Effective as of today, _____________, _____, the undersigned
(“Optionee”) elects to exercise Optionee’s option to purchase ___________ shares of the Common
Stock (the “Shares”) of Vertex Energy, Inc. (the “Company”) under and pursuant
to the Vertex Energy, Inc. 2020 Equity Incentive Plan (the “Plan”) and the Stock Option Agreement dated
and effective _________ (the “Option Agreement”).

 

2.
       Delivery of Payment. Optionee herewith delivers to the Company the full purchase
price of the Shares, as set forth in the Option Agreement, and any and all withholding taxes due in connection with the exercise
of the Option.

 

3.
       Representations of Optionee. Optionee acknowledges that Optionee has received,
read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions.

 

4.
       Rights as Stockholder. Until the issuance of the Shares (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive
dividends or any other rights as a stockholder exists with respect to the Optioned Stock, notwithstanding the exercise of the
Option. Subject to the requirements of Section 6 below, the Shares will be issued to the Optionee as soon as
practicable after the Option is exercised in accordance with the Option Agreement. No adjustment will be made for a dividend or
other right for which the record date is prior to the date of issuance except as provided in the Plan.

 

5.
       Tax Consultation. Optionee understands that Optionee may suffer adverse tax consequences
as a result of Optionee’s purchase or disposition of the Shares. Optionee represents that Optionee has consulted with any
tax consultants Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not
relying on the Company for any tax advice.

 

6.
       Refusal to Transfer. The Company will not (i) transfer on its books any Shares
that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Notice, or (ii) be required
to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom
such Shares have been so transferred.

 

7.
       Successors and Assigns. The Company may assign any of its rights under this Exercise
Notice to single or multiple assignees, and this Exercise Notice inures to the benefit of the successors and assigns of the Company.
Subject to the restrictions on transfer herein set forth, this Exercise Notice is binding upon Optionee and his or her heirs,
executors, administrators, successors and assigns.

 

8.
       Interpretation. Any dispute regarding the interpretation of this Exercise Notice
will be submitted by Optionee or by the Company forthwith to the Administrator for review at its next regular meeting. The resolution
of disputes by the Administrator will be final and binding on all parties.

 

9.
       Governing Law; Severability. This Exercise Notice is governed by, and construed
in accordance with, the laws of the State of Texas, without giving effect to its conflict or choice of law principles that might
otherwise refer construction or interpretation of this Exercise to the substantive law of another jurisdiction. In the event that
any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Exercise
Notice will continue in full force and effect.

 

    
2020 Stock Option Agreement
Page 7 of 9

     

    

 

10.  Optionee
Representations.

 

(a)       With
respect to a transaction occurring prior to such date as the Plan and Common Stock thereunder are covered by a valid Form S-8
or similar U.S. federal registration statement, Optionee agrees that in no event shall Optionee make a disposition of any of the
Common Stock, unless and until: (i) Optionee shall have notified the Company of the proposed disposition and shall have furnished
the Company with a statement of the circumstances surrounding the proposed disposition; and (ii) Optionee shall have furnished
the Company with an opinion of counsel satisfactory to the Company to the effect that (A) such disposition will not require registration
or qualification of such Common Stock under applicable U.S. federal, state or foreign securities laws or (B) appropriate action
necessary for compliance with the U.S. federal, state or foreign securities laws has been taken; or (iii) the Company shall have
waived, expressly and in writing, its rights under clauses (i) and (ii) of this Subsection.

 

(b)       Optionee
understands that if a registration statement covering the Common Stock under the Securities Act is not in effect when Optionee
desires to sell the Common Stock, Optionee may be required to hold the Common Stock for an indeterminate period. Optionee also
acknowledges that Optionee understands that any sale of the Common Stock which might be made by Optionee in reliance upon Rule
144 under the Securities Act may be made only in limited amounts in accordance with the terms and conditions of that Rule.

 

11.       Other
Documents. Optionee hereby acknowledges receipt or the right to receive a document providing the information required by Rule
428(b)(1) promulgated under the Securities Act of 1933, as amended, including, but not limited to, the information required by
Part I of Form S-8, if applicable.

 

12.
       Notices. Any notice required or permitted hereunder will be provided in writing
and deemed effective if provided in the manner specified in the Option Agreement.

 

13.
       Further Instruments. The parties agree to execute any further instruments and
to take any further action as may be reasonably necessary to carry out the purposes and intent of the Option Agreement and this
Exercise Notice.

 

14.
       Entire Agreement. The Plan and Option Agreement are incorporated herein by reference.
This Exercise Notice, the Plan, and the Option Agreement constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to
the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed
by the Company and Optionee.

  

[Signature
page follows.]

 

    
2020 Stock Option Agreement
Page 8 of 9

     

    

 

	Submitted by:	 	 	
        Accepted by:

         
	 
	OPTIONEE	 	 	VERTEX ENERGY, INC.	 
	 	 	 	 	 
	
        Signature________________

        
	 	 	 	
        By: ________________

        
	 	 
	 	 	 	 	 
	
        Print Name: _______________

        
	 	 	 	
        Print Name: ________________

        
	 	 
	 	 	 	 	 
	
        Address: ________________

        
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
        Date Received: ________________

        
	 	 

 

 

 

    
2020 Stock Option Agreement
Page 9 of 9

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