Document:

ex10-4.htm

    EXHIBIT
10.4

    OPERATING
AND LICENSING AGREEMENT

     

    This
Operating and Licensing Agreement (referred to as the “Agreement” or “Contract”)
is made and entered into this ____ day of March, 2009, to be effective as of the
Effective Date, as set forth below, by and between Cedar Marine Terminals, L.P.
(hereinafter referred to as “CMT”) and Vertex Energy, Inc., (hereinafter
referred to as “Vertex Nevada”).  Collectively, both contracting
entities are referred to as “Parties” to the Contract.  All references
to Sections are references to sections in this Agreement unless otherwise
provided herein.

     

    I. GENERAL TERMS, FACILITIES
AND PURPOSE

     

    1.           CMT
has agreed to provide to Vertex Nevada, the right to use of certain land as
otherwise described in and subleased pursuant to the Sublease Agreement between
the Parties attached hereto as Exhibit A (the
“Sublease Agreement”).

     

    2.           CMT
has also agreed to sell Vertex Nevada certain assets as set forth in the
Purchase and Sale Agreement between the Parties attached hereto as Exhibit B (the
“Assets” and the “Purchase Agreement”).

     

    3.           The
contractual obligations between the Parties pursuant to this Agreement will be
performed at CMT’s leased Terminal Storage and Process Facilities at the Cedar
Marine Terminal Facilities, 200 Atlantic Pipe Line Road, Baytown, Chamber
County, Texas, 77520; located at the entrance of Cedar Bayou (hereinafter
referred to as the “Terminal”).

     

    4.           CMT
has also agreed to allow Vertex Nevada to license the rights to and use of
certain proprietary technology relating to the re-refining of certain oil
feedstocks referred to as its “Thermal/chemical extraction technology” also
known as “OP#2”, described in greater detail in the “Cedar Marine Terminal –
Project OP II Study,” dated February 23, 2009.

     

    5.           The
Parties desire to enter into this Agreement to set forth the terms and
conditions pursuant to which CMT will serve as the operator of Vertex Nevada’s
operations at the Terminal and in connection with the Assets and OP#2 located at
the Terminal (the “CMT OP#2”).

     

    II. SERVICES

     

    1.           CMT
shall provide services to Vertex Nevada pursuant to the terms of this Agreement
in connection with the operation of the Terminal, the Assets and CMT OP#2 and
the loading and unloading of trucks at the Terminal, as may be reasonably
requested by Vertex Nevada from time to time (the “Services”) which can be found
in the “Terminaling Agreement,” dated November 1, 2008, by and between CMT and
Vertex Holdings, L.P. (formerly Vertex Energy, L.P.), as amended from time to
time.

     

    2.           All
Services rendered under this Agreement shall be furnished in accordance with all
ordinances, resolutions, statutes, rules and regulations of any federal, state
or local governmental agency of competent jurisdiction.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.           CMT
shall obtain at its sole cost and expense such licenses, permits and approvals
as may be required by law for the performance of this Agreement. CMT shall also
have the sole obligation to pay for any fees, assessments and taxes, plus
applicable penalties and interest, which may be imposed by law and arise from or
are necessary for CMT’s performance of this Agreement.

     

    4.           CMT
shall adopt reasonable methods during the life of the Agreement to furnish
continuous protection to the Assets and other materials and components thereof
in its care, custody, control or possession to prevent losses or
damages.

     

    5.           The
Parties agree that services and the costs of such services separate from the
Services shall be mutually agreed to between the Parties prior to CMT rendering
any such services.

     

    6.           The
feedstock that Vertex Nevada provides to CMT OP#2 shall be Used Oil and Fuel Oil
Cutterstock, and shall comply with the standards set forth in Title 40, Section
279.11 of the Code of Federal Regulations (“CFR”)(as well as Title 30, Chapter
324 of the Texas Administrative Code (“TAC”)) as used oil burned for energy
recovery, and any fuel produced from used oil by processing, blending, or other
treatment shown not to exceed any of the allowable levels of the constituents
and properties as specified (defined herein as “Conforming
Feedstock”).

     

    7.           The
Conforming Feedstock will not be a mixture of used oil and hazardous waste that
would be regulated as a hazardous waste set forth in 40 CFR 279.10 (in
concurrence with 30 TAC Chapter 325).

     

    8.           All
Conforming Feedstock will also be required to fall into a viscosity range of
greater than 60,000 cps @ 70o F;
liquids with vapor pressures which exceed the limitations imposed by any
federal, state or local statute, permit, or regulation will not exceed 280o F;
capable of passing through a Number 3 Sieve (0.223 inches); water content not to
exceed 7% of total volume of feedstock, and a specific gravity of no lower than
20 Degrees API.

     

    9.           Any
material received not within the specified guidelines will remain the property
of Vertex Nevada and all cost and/or expenses will be the sole responsibility of
Vertex Nevada.

     

    10.           Any
materials received from Vertex Nevada which are not Conforming Feedstock shall
be referred to herein as “Non-Conforming Feedstock”.

     

    III. USE OF CMT OP#2 at the
Baytown, Texas Facility

     

    1.           Vertex
Nevada shall be provided the first right to use 33,000 barrels of capacity
(62.3% of estimated production capacity), of the total capacity of the Baytown,
Texas CMT OP#2 Facility per month during the Term of this Agreement (the
“Reserved Capacity”).

     

    2.           CMT
shall be provided the right to use the next 20,000 barrels of capacity (37.7% of
estimated production capacity) of the Baytown, Texas CMT OP#2
Facility  after the Reserved Capacity has been met by Vertex
Nevada.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    3.           The
disposition of any capacity in excess of 53,000 barrels at the Baytown, Texas
CMT OP#2 Facility shall be allocated pro rata based on the percentages described
in (1) and (2) above.  Once the CMT OP#2 process is up and running at
the Baytown, Texas Facility for at least 30 days (the “Operation Date”), and
continuing throughout CMT OP#2’s operations at the Baytown, Texas Facility,
Vertex Nevada and CMT will analyze the allocation of production capacities and
may mutually agree to different production allocations than as provided above,
provided that any such changes must be approved by the Related Party
Transactions Committee of the Vertex Nevada Board of Directors (the
“RPTC”).

     

    4.           CMT
shall be provided the reasonable right to use the CMT OP#2 at the Baytown, Texas
Facility at any time that Vertex Nevada is not using OP#2, and/or not using the
full daily capacity of the CMT OP#2 at the Baytown, Texas Facility,
notwithstanding the fact that the Reserved Capacity has not yet been met by
Vertex Nevada.

     

    5.           Vertex
Nevada shall be provided the reasonable right to use the CMT OP#2 at the
Baytown, Texas Facility at any time that CMT is not using/or not using the full
daily capacity of the CMT OP#2 at the Baytown, Texas Facility, notwithstanding
the fact that the Reserved Capacity has been met by Vertex Nevada.

     

    6.          
Vertex Nevada shall have a right of first refusal to deploy OP#2 in locations
outside the current OP#2 Facility at Baytown, Texas.

     

    IV. COORDINATION OF
SERVICES

     

    1.           Control
and operation of the Terminal, the Assets and OP#2 shall rest exclusively with
CMT.  CMT may suspend operations at the Terminal if CMT reasonably
believes that any person, equipment or the environment is at risk of injury or
damage.

     

    2.           The
following representative of CMT is hereby designated as being the representative
of CMT authorized to act on its behalf with respect to the work specified herein
and make all decisions in connection therewith: John Hamman. The foregoing
representative may be changed by CMT only upon prior written notice to Vertex
Nevada.

     

    3.           The
“Contract Officer” shall be such person as may be designated by Vertex Nevada.
It shall be CMT’s responsibility to assure that the Contract Officer is kept
informed of the progress of the performance of the services and CMT shall refer
any decisions which must be made by Vertex Nevada to the Contract Officer.
Initially, Vertex Nevada designates its Contract Officer for day-to-day
operational matters to be Greg Wallace.

     

    4.           The
experience, knowledge, capability and reputation of CMT, its officers, agents,
employees and subcontractors were a substantial inducement for Vertex Nevada to
enter into this Agreement. Therefore, neither this Agreement nor any interest
herein may be assigned or transferred, voluntarily or by operation of law,
without the prior written approval of Vertex Nevada. Unless specifically stated
to the contrary in any written consent to any assignment, no assignment will
release or discharge CMT from any duty or responsibility under this Agreement.
Notwithstanding the foregoing, Vertex Nevada understands that CMT shall use
certain subcontractor suppliers for service and materials in the performance of
this Agreement. In such instances, CMT shall be as fully responsible to Vertex
Nevada for the acts and omissions of its subcontractor(s) as it is for the acts
and omissions of persons it directly employs. Nothing contained in this
Agreement shall create any contractual relationship between any subcontractor
and Vertex Nevada.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    5.           CMT
shall perform all services required herein as an independent contractor of
Vertex Nevada and shall remain at all times as to Vertex Nevada, a wholly
independent contractor with only such obligations as are consistent with that
role. CMT shall not at any time or in any manner represent that it or any of its
officers, agents, subcontractors or employees are agents or employees of Vertex
Nevada.

     

    6.           Neither
party shall be liable for evaporation, shrinkage, line loss, clingage,
discoloration, contamination, damage to, or destruction of, any product or
property, or for any delay or non-performance, when any of the foregoing is
caused in whole or in part by any cause not within the control of said party,
whether now or hereafter existing, including without limitation, any act of God
or of a public enemy, acts of terrorism, tropical storms and hurricanes,
non-availability of machinery, embargos, congestions or interventions, or
failure or delay of manufacturers or suppliers to deliver same, except that
Vertex Nevada shall be responsible to pay all charges arising from the
Agreement.  CMT shall in no event be liable for loss of, or damage to,
any product or property of Vertex Nevada except when caused by CMT’s failure to
use reasonable care in the safekeeping and handling of any product or property
of Vertex Nevada.  Notwithstanding the foregoing, the failure by
either party to perform any of its obligations under this Agreement shall be
deemed not to have been caused by circumstances reasonably outside its control
and therefore not an event of Force Majeure, if such failure results from
breakdown, or failure of, or accident to, storage tanks, facility pipelines,
dock or docks, machinery and equipment, or other property, or the partial, or
entire extraordinary failure thereof, or the necessity to make repairs, or
alterations thereto, which result from (i) normal wear and tear which would be
reasonably anticipated by a prudent operator, or in circumstances where a
reasonably prudent operator would have standby equipment, or spare parts, or
(ii) the lack of the proper operation, maintenance, quality control, design,
engineering and/or procurement of such storage tanks, facility pipelines, dock
or docks, machinery and equipment, or other property.  If a Force
Majeure condition persists for a period of thirty (30) consecutive days, then
either party may terminate the Agreement on five (5) days prior written notice
to the other.

     

    7.           If
either party is unable to perform under this Agreement as a result of Force
Majeure, the party will provide the other party with written notice of such
inability to perform as soon as practicable after the occurrence of the event
causing such inability and describing in reasonable detail the nature of the
event constituting Force Majeure.

     

    8.           The
Parties covenant and agree that from and after the Effective Date of this
Agreement, each party will carry and maintain, at its sole cost and expense, the
insurance set forth in paragraphs (i), (ii), (iii), and (iv).

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (i)          Commercial
General Liability insurance coverage including personal injury, bodily injury,
property damage, operations hazard and contractual liability, such insurance to
insure both the insured and the other party, as an additional insured, and to
afford protection to the limit of not less than $2,000,000.00, combined single
limit, in respect to injury or death to any number of persons and all property
damage arising out of any one (1) occurrence.

     

    (ii)         Property
Insurance on an all risk, full replacement cost basis (including coverage
against fire, wind, tornado, malicious mischief and flood) covering the
Premises, all improvements on the Premises and all fixtures, and equipment. Such
policy will be written in the names of the insured, the other party and any
other parties reasonably designated by the other party from time to time, as
their respective interests may appear.

     

    (iii)        Employer’s
Liability Insurance.  Employer’s liability insurance, including
co-employee coverage, in an amount not less than $1,000,000.00.

     

    (iv)        Additional
Insurance. Any other form of insurance or any increase, change or endorsement to
the insurance required herein as any mortgagee of CMT may request or as CMT may
request, provided additional coverage required at the request of CMT shall be
limited to such forms and changes as customarily required for industrial
properties in Chambers County, Texas.

     

    V. TERM

     

    1.           This
Agreement shall be effective as of the closing of the Amended and Restated
Agreement and Plan of Merger entered into on or around about May 19, 2008 (as
amended and extended from time to time, the “Merger Agreement”), by and between
World Waste Technologies, Inc., a California corporation (“WWT”), Vertex Energy,
L.P., a Texas limited partnership, Benjamin P. Cowart, Vertex Nevada and Vertex
Merger Sub, LLC, a California limited liability company (the “Effective Date”).
The term of this Agreement shall follow the term of the Sublease Agreement
between the Parties, and it shall expire on February 28, 2017 at 5:00 P.M.
C.S.T. time (the “Term”).

     

    2.           The
Parties agree that this Agreement may be terminated during the Term of this
Agreement:

     

    (i)          By
the mutual consent of both Parties at any time;

     

    (ii)         In
the event any term of this agreement is breached, this Agreement may be
terminated by the non-breaching party upon thirty (30) days prior written notice
to the breaching party of such breach and provided that such breach is not
reasonably cured during such thirty (30) day period; or

     

    (iii)        At
any time at the option of either party upon five (5) days prior notice in the
event that Vertex Nevada has paid the R&D Costs (as defined below) to CMT
and Benjamin P. Cowart’s employment has been terminated by Vertex Nevada, that
Benjamin P. Cowart would have the right to terminate Vertex Nevada’s use of CMT
OP#2 at CMT.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    
      
      

    

    
      VI. CONSIDERATION
FOR SERVICES

       

    

    1.           As
consideration for agreeing to perform the Services hereunder, Vertex Nevada
shall pay CMT all of its costs and expenses associated with CMT OP#2 (the
“Expenses”), plus the payment to CMT of a fee equal to 10% of the
Expenses  (the “Fees”).  It is understood by both parties
that the per gallon cost associated with this Section VI(b) shall not exceed
$0.40 per gallon (except as provided in Article VI(5), below) without written
approval by Vertex Nevada (the “Maximum Price Per Gallon”).

     

    2.           The
Fees shall be paid monthly in arrears within ten (10) business days from the
date such Fees are billed by CMT.

     

    3.           In
the event the Fees are not paid as provided above, CMT shall have no obligation
to render the Services.

     

    4.           The
Fees shall be reviewed and approved by Vertex Nevada’s Related Party Transaction
Committee on a quarterly basis and/or as needed.

     

    5.           In
the event Vertex Nevada’s Conforming Feedstock throughput of CMT OP#2 is less
than 25,000 barrels per month, the Maximum Price Per Gallon shall not
apply.

     

    6.           Vertex
Nevada and CMT will analyze the Fees and Maximum Price Per Gallon and may
mutually agree to different Fees and/or a different Maximum Price Per Gallon
than as provided above, provided that any such changes must be approved by the
RPTC.

     

    VII.
LICENSING OF
OP#2

     

    1.           Subject
to the terms and conditions of this Agreement, Vertex Nevada is hereby granted a
non-revocable, non-transferable, royalty-free, perpetual (except as otherwise
provided below) license (the “License”) to use the technology associated with
the operations of CMT OP#2 (the “Technology”) in any market in the World,
including the right to duplicate CMT OP#2 and/or use the Technology in any
future processes built by Vertex Nevada anywhere in the World; provided however,
that the requirements of Article VII(2) are complied with as described
below.

     

    2.           Vertex
Nevada agrees to pay CMT the documented R&D Costs of up to a maximum of $1.4
million dollars as of the Effective Date, which both parties agree is an
obligation due to Vertex Nevada at the Effective Date.  Vertex Nevada
agrees to use its best efforts to remit the R&D Costs as soon as possible in
a commercially reasonable manner.   Vertex Nevada and Vertex LP
will designate an individual to negotiate the terms of payments, with the RPTC
approving such terms before they are finalized.

    
      
        
        

      

      
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    3.           “R&D
Costs” shall mean the first $1.4 million of CMT’s documented net development
costs relating to the Technology, including, but not limited to CMT OP#2, which
shall be reasonably approved by the Related Party Transaction
Committee.  The Related Party Transaction Committee shall have the
right, but not the obligation to audit such R&D Costs.

     

    4.           The
License shall expire automatically in the event Vertex Nevada:

     

    (a)           Shall
(i) become insolvent or take any action which constitutes its admission of
inability to pay its debts as they mature; (ii) make an assignment for the
benefit of creditors, file a petition in bankruptcy, petition or apply to any
tribunal for the appointment of a custodian, receiver or a trustee for it or a
substantial portion of its assets; (iii) commence any proceeding under any
bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or
liquidation or statute of any jurisdiction, whether now or hereafter in effect;
(iv) have filed against it any such petition or application in which an order
for relief is entered or which remains undismissed for a period of ninety (90)
days or more; (v) indicate its consent to, approval of or acquiescence in any
such petition, application, proceeding or order for relief or the appointment of
a custodian, receiver or trustee for it or a substantial portion of its assets;
or (vi) suffer any such custodianship, receivership or trusteeship to continue
undischarged for a period of ninety (90) days or more; or

     

    (b)           Shall
dissolve or wind-up its operations.

     

    5.           The
License granted by this Section VII and the terms and conditions of the License,
including the expiration of the License, shall survive the Term of this
Agreement.

     

    VIII. MODIFICATION

     

    1.           This
Agreement shall not be modified, amended, or changed, except by written
instrument executed by the duly authorized officers, or representatives, of the
Parties hereto.  If any law, rule, or regulation, is adopted, or
rescinded, CMT and Vertex Nevada agree to comply with such law, rule, or
regulation.

     

    IX. INDEMNIFICATION

     

    1.           CMT’s
Indemnification.  CMT agrees to and does hereby indemnify, hold
harmless and defend Vertex Nevada, and each of its respective shareholders,
members, partners, directors, officers, managers, employees, agents, attorneys
and representatives (each a “Related Person” and collectively the “Related
Persons”), from any and all judgments, orders, decrees, claims, costs or
expenses arising out of the performance or breach by CMT of its obligations
under this Agreement, including on account of but not limited to the
following:

     

    
      	
               
      

            	
              (i)

            	
              damage
      to property of CMT, Vertex Nevada or third
  parties;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              personal
      injury, including death;

            

    

    
      
        
        

      

      
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              (iii)

            	
              any
      violation by CMT or its Related Persons of any government, departmental,
      or local law, order or regulation;
and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any
      environmental condition occurring during the term of this Agreement to the
      extent caused by CMT or its Related
Persons;

            

    

     

    provided,
however, that this indemnification provision shall not apply to the extent that
any such damage to property, personal injury, including death, any violation of
any such law, order or regulation or environmental condition results from the
gross negligence or willful misconduct of Vertex Nevada, its agents or
employees.

     

                                
2.           Vertex
Nevada’s Indemnification.  Vertex Nevada agrees to and does hereby
indemnify, hold harmless and defend CMT and its Related Persons, from any and
all judgments, orders, decrees, claims, costs or expenses arising out of the
performance or breach by Vertex Nevada of its obligations under this Agreement,
including on account of but not limited to the following:

     

    
      	
               
      

            	
              (i)

            	
              the
      transmittal Non-Conforming Feedstock or the operation of CMT OP#2 with
      Non-Conforming Feedstock;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              damage
      to property of CMT, Vertex Nevada or third
  parties;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              personal
      injury, including death;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any
      violation by Vertex Nevada or its Related Persons of any government,
      departmental, or local law, order or regulation;
  and

            

    

     

    
      	
               
      

            	
              (v)

            	
              any
      environmental condition occurring during the term of this agreement to the
      extent caused by Vertex Nevada or its Related
  Persons;

            

    

     

    provided,
however, that this indemnification provision shall not apply to the extent that
any such damage to property, personal injury, including death, any violation of
any such law, order or regulation or environmental condition resulting from the
gross negligence or willful misconduct of CMT, its agents or
employees.

     

    X.
FORCE
MAJEURE

    

    CMT shall
not be obligated to perform Services pursuant to this Agreement and Vertex
Nevada shall not be required to pay any Fees to CMT to the extent that any one
or more of the following events prevent, restrict or delay the operation of CMT
OP#2 in the customary manner, whether the event affects CMT or Vertex Nevada
directly or affects Vertex Nevada indirectly by affecting Vertex Nevada's
suppliers:

    

    
      	
               
      

            	
              (a)

            	
              Compliance,
      voluntary or involuntary, with a direction or request of any government or
      person purporting to act with governmental authority, including without
      limitation acquiescence in and voluntary agreement to a change in the
      present relationships with any government resulting from the Initiative of
      such government or a person purporting to act for such
      government;

            

    

    
      
        
        

      

      
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              (b)

            	
              Total
      or partial expropriation, nationalization, confiscation, requisitioning or
      abrogation or breach of a government contract or
    concession;

            

    

    

    
      	
               
      

            	
              (c)

            	
              Closing
      or restriction on the use of a port, pipeline or
  railroad;

            

    

    

    
      	
               
      

            	
              (d)

            	
              Maritime
      peril, storm, earthquake, flood;

            

    

    

    
      	
               
      

            	
              (e)

            	
              Accident,
      fire, explosion;

            

    

    

    
      	
               
      

            	
              (f)

            	
              Hostilities
      or war (declared or undeclared), embargo, blockade, riot, civil unrest,
      sabotage, revolution, insurrection;

            

    

    

    
      	
               
      

            	
              (g)

            	
              Strike
      or other labor difficulty (whomsoever’s employees are involved), even
      though the strike or other labor difficulty could be settled by acceding
      to the demands of a labor group;

            

    

    

    
      	
               
      

            	
              (h)

            	
              Loss
      or shortage of producing, delivery or transportation facilities,
      equipment, labor or material caused by circumstances beyond the reasonable
      control of the Party affected; or

            

    

    

    
      	
               
      

            	
              (i)

            	
              Any
      event reasonably beyond the control of the Party affected, whether or not
      similar to those listed above.

            

    

    

    As used
in this Section, “in the customary manner" means in accordance with the general
practices of the petroleum industry; and “government” shall include without
limitation any company controlled by a government.

    

     

    XI. NOTICES

     

    1.           Any
notice required or permitted hereunder by one party, to the other, shall be in
writing and the same shall be given, and shall be deemed to be served, and
given, if delivered in person to the address set for hereinafter for the party
to whom the notice is given, or if placed in the United States mail, postage
prepaid, registered or certified mail, address to the party at the address
hereinafter specified.

     

    
      
        
          
            
              	
                      The
      address for Vertex Nevada shall be:

                    	 
      
	 
      	
                      Vertex
      Nevada

                      Attn:                                                    

                      1331
      Gemini Suite 103

                      Houston,
      Texas 77058

                       

                    
	
                      The
      address for CMT shall be:

                    	 
      
	 
      	
                      Cedar
      Marine Terminal, L.P.

                      Attn:                                                    

                      200
      Atlantic Pipe Line Rd.

                      Baytown,
      Texas 77520

                       

                    

            

          

        

      

    

    
      
        
        

      

      
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    XII. MISCELLANEOUS

     

    1.           If
any section of provision of this Agreement shall be determined to be invalid by
applicable law, then, for the period that it is invalid, it shall be deemed to
be deleted from this Agreement; however, all remaining portions of this
Agreement shall remain in full force and effect.

     

    2.           The
failure of a party hereunder to assert a right, or enforce an obligation of the
other party, shall not be deemed a waiver of that right, or obligation, in the
event that right, or obligation, becomes effective, or is asserted
thereinafter.

     

    3.           This
Agreement shall be deemed to have been entered into the State of Texas, and the
laws of the State of Texas (without giving effect to any principles of conflicts
of law) shall be applicable in the construction of the terms, and provisions
hereof, and in determining the rights and obligations of the Parties
hereunder.

     

    4.           The
Agreement constitutes the entire agreement of the Parties regarding the matters
contemplated herein, or related thereto, and supersedes all prior and
contemporaneous agreements, and understandings of the Parties in connection
therewith.  No covenant, representations, or conditions, which is not
expressed in the Agreement shall affect, or be effective to interpret, change,
or restrict, the express provisions of this Agreement.

     

    5.           No
failure on the part of any Party to enforce any provisions of this Agreement
will act as a waiver of the right to enforce that provision.

     

    6.           Section
headings are for convenience only and shall not define or limit the provisions
of this Agreement.

     

    7.           This
Agreement may be executed in two or more identical counterparts, all of which
shall be considered one and the same agreement and shall become effective when
such counterparts have been signed by each party and signature pages from such
counterparts have been delivered.  This Agreement may be executed by
facsimile transmission or by e-mail transmission in PDF format.  A
photocopy of PDF of this Agreement shall be effective as an original for all
purposes.

     

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

     

    

    
      
        
        

      

      
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    EXECUTED and effective this
______day of March 2009.

     

    

    
      
        
          	 
      	
                  “CMT”

                   

                  Cedar
      Marine Terminals, L.P.

                  a
      Texas limited liability partnership

                   

                  By VTX, INC. It's
      General Partner

                  By: 
      /s/
      Benjamin P. Cowart

                  Its: President                                                    

                  Printed
      Name:                                                    

                   

                   

                   

                
	 
      	
                  “Vertex
      Nevada”

                   

                  Vertex Energy, Inc.

                  a
      Nevada corporation

                   

                  /s/
      Benjamin P. Cowart

                  Benjamin
      P. Cowart

                  Chief
      Executive Officer

                   

                

        

      

    

    
      
        
        

      

      
        -11-ex10-5.htm

    EXHIBIT
10.5

    VERTEX
ENERGY, INC.

     

    EXECUTIVE
EMPLOYMENT AGREEMENT

     

    THIS
EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is
entered into this __ day of December 2008, to be effective as of the Effective
Date as defined below between Vertex Energy, Inc., a Nevada corporation (the
“Company”), and
Benjamin P. Cowart (“Executive”) (each of
Company and Executive is referred to herein as a “Party,” and
collectively referred to herein as the “Parties”).

     

    W
I T N E S S E T H:

     

    WHEREAS, the Company desires
to obtain the services of Executive, and Executive desires to be employed by the
Company upon the terms and conditions hereinafter set forth.

     

    NOW, THEREFORE, in
consideration of the premises, the agreements herein contained and other good
and valuable consideration, receipt of which is hereby acknowledged, the parties
hereto agree as of the Effective Date as follows:

     

    ARTICLE
I.

     

    

     

    EMPLOYMENT;
TERM; DUTIES

     

    1.1.           Employment. Pursuant
to the terms and conditions hereinafter set forth, the Company hereby employs
Executive, and Executive hereby accepts such employment, as the Chief Executive
Officer (“CEO”)
of the Company for a period of five (5) years beginning on the Effective
Date.

     

    1.2.           Duties and
Responsibilities.  Executive, as CEO, shall perform such
administrative, managerial and executive duties for the Company (i) as are
prescribed by applicable job specifications for the chief executive officer of a
public company the size and nature of the Company, (ii) as may be prescribed by
the Bylaws of the Company, (iii) as are customarily vested in and
incidental to such position, and (iv) as may be assigned to him from time
to time by the Board of Directors of the Company (the “Board”).

     

    1.3.           Non-Competition.  Executive
agrees to devote substantially all of Executive’s business time, energy and
efforts to the business of the Company (except as specifically provided for in
Section 1.4 below), and will use Executive’s best efforts and abilities
faithfully and diligently to promote the business interests of the
Company.  For so long as Executive is employed hereunder, and for a
period of six months thereafter (the “Non-Compete Period”),
Executive shall not, directly or indirectly, either as an employee, employer,
consultant, agent, investor, principal, partner, stockholder (except as the
holder of less than 1% of the issued and outstanding stock of a publicly held
corporation), corporate officer or director, or in any other individual or
representative capacity, engage or participate in any business that is in
competition in any manner whatsoever with the business of the Company, as such
business of the Company is now or hereafter conducted.

     

    1.4.           Other
Activities.  Subject to the foregoing prohibition and provided
such services or investments do not violate any applicable law, regulation or
order, or interfere in any way with the faithful and diligent performance by
Executive of the services to the Company otherwise required or contemplated by
this Agreement, the Company expressly acknowledges that Executive
may:

     

    1.4.1           make
and manage personal business investments of Executive’s choice without
consulting the Board;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.4.2           serve
in any capacity with any non-profit civic, educational or charitable
organization; and

     

    1.4.3           spend
up to a total of twenty (20) hours per month in fulfilling his duties as
officer, director and/or manager of any of the private companies with whom
Executive is currently affiliated, namely Vertex Energy, LP, VTX, Inc., Cross
Road Carriers, Vertex Recovery, H&H Oil, Arrow, Cedar Marine Terminal,
Vertex Residual Management, B&S Cowart, FLP, Vertex Green, LP and Vertex
Processing, pursuant to Exhibit
A.

     

    1.4.4           a
“Related Party
Transaction Committee,” composed of at least two (2) Independent
Directors (as defined below) of the Company shall be appointed.  Such
Related Party Transaction Committee shall be available to Executive to review
any potential conflicts of interest between Executive, the Company and any other
company or individual which may be affiliated with Executive.

     

    1.5.           Board of
Directors.  Prior to the effectiveness of this Agreement, the
Board has appointed Executive as a member of the Board, to serve until the next
election of directors by the Company’s shareholders. Thereafter, provided that
Executive is still employed hereunder, the Board shall nominate Executive to be
elected to serve on the Board at each meeting of the Company’s shareholders held
during the term of this Agreement to elect directors, consistent with the
provisions of the Bylaws and Articles of Incorporation of the Company, as
amended and in effect from time to time.

     

    1.6.           Covenants of
Executive.

     

    1.6.1           Best
Efforts.  Executive shall devote his best efforts to the
business and affairs of the Company.  Executive shall perform his
duties, responsibilities and functions to the Company hereunder to the best of
his abilities in a diligent, trustworthy, professional and efficient manner and
shall comply, in all material respects, with all rules and regulations of the
Company (and special instructions of the Board, if any) and all other rules,
regulations, guides, handbooks, procedures and policies applicable to the
Company and its business in connection with his duties hereunder, including all
United States federal and state securities laws applicable to the
Company.

     

    1.6.2           Records.  Executive
shall use his best efforts and skills to truthfully, accurately, and promptly
prepare, maintain, and preserve all records and reports that the Company may,
from time to time, request or require, fully account for all money, records,
equipment, materials, or other property belonging to the Company of which he may
have custody, and promptly pay and deliver the same whenever he may be directed
to do so by the Board.

     

    1.6.3           Compliance.  Executive
shall use his best efforts to maintain the Company’s compliance with all rules
and regulations of the Securities and Exchange Commission (“SEC”), and reporting
requirements for publicly traded companies, including, without limitation,
overseeing and filing with the SEC all periodic reports the Company is required
to file under the Exchange Act of 1934 (as amended, the “Exchange
Act”).  Executive shall at all times comply, and cause the
Company to comply, with the then-current good corporate governance standards and
practices as prescribed by the SEC, any exchange on which the Company’s capital
stock or other securities may be traded and any other applicable governmental
entity, agency or organization.  Without limiting the generality of
the foregoing, Executive shall submit for pre-approval to the Audit Committee of
the Board any proposed related-party transactions.

     

    1.7.           Effective
Date.  The “Effective Date” of
this Agreement shall be the closing date of the  Amended and Restated
Agreement and Plan of Merger by and Between World Waste Technologies, Inc.,
Vertex Energy, L.P., Vertex Energy, Inc., Benjamin P. Cowart and Vertex Merger
Sub, LLC, dated on or around May 19, 2008, as amended from time to
time.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    ARTICLE
II.

     

    COMPENSATION
AND OTHER BENEFITS

     

    2.1.           Base
Salary.  So long as this Agreement remains in effect, for all
services rendered by Executive hereunder and all covenants and conditions
undertaken by the Parties pursuant to this Agreement, the Company shall pay, and
Executive shall accept, as compensation, an annual base salary (“Base Salary”) of
$190,000.  The Base Salary shall be payable in regular installments in
accordance with the normal payroll practices of the Company, in effect from time
to time, but in any event no less frequently than on a monthly basis. For so
long as Executive is employed hereunder, beginning on the first anniversary of
the Effective Date, and on each anniversary thereafter, the Base Salary shall be
increased as determined by the Compensation Committee of the Board (the “Compensation
Committee”), in its sole and absolute discretion.

     

    2.2.           Bonus
Compensation.  For each year this Agreement is in effect,
Executive will be eligible to earn a bonus in the sole discretion of the
Compensation Committee.

     

    2.3.           Business
Expenses.  So long as this Agreement is in effect, the Company
shall reimburse Executive for all reasonable, out-of-pocket business expenses
incurred in the performance of his duties hereunder consistent with the
Company’s policies and procedures, in effect from time to time, with respect to
travel, entertainment and other business expenses customarily reimbursed to
senior executives of the Company in connection with the performance of their
duties on behalf of the Company.

     

    2.4.           Vacation.  Executive
will be entitled to 20 days of paid time-off (“PTO”) per year. PTO
days shall accrue beginning on the 1st of January for each year during the term
of this Agreement. Unused PTO days shall expire on December 31 of each year and
shall not roll over into the next year. Other than the use of PTO days for
illness or personal emergencies, PTO days must be pre-approved by the
Company.

     

    2.5.           Other
Benefits.  Executive shall be entitled to participate in the
Company’s employee stock option plan, life, health, accident, disability
insurance plans, pension plans and retirement plans, in effect from time to time
(including, without limitation, any incentive program or discretionary bonus
program of the Company which may be implemented in the future by the Board), to
the extent and on such terms and conditions as the Company customarily makes
such plans available to its senior executives.

     

    2.6.           Withholding.  The
Company may deduct from any compensation payable to Executive (including
payments made pursuant to this Section 2 or in connection with the
termination of employment pursuant to Article III of this Agreement) amounts
sufficient to cover Executive’s share of applicable federal, state and/or local
income tax withholding, social security payments, state disability and other
insurance premiums and payments.

     

    ARTICLE
III.

     

    TERMINATION
OF EMPLOYMENT

     

    3.1.           Termination of
Employment.  Executive’s employment pursuant to this Agreement
shall terminate on the earliest to occur of the following:

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    3.1.1           upon
the death of Executive;

     

    3.1.2           upon
the delivery to Executive of written notice of termination by the Company if
Executive shall suffer a physical or mental disability which renders Executive,
in the reasonable judgment of the Compensation Committee, unable to perform his
duties and obligations under this Agreement for either 90 consecutive days or
180 days in any 12-month period;

     

    3.1.3           on
the five-year anniversary of the date hereof;

     

    3.1.4           upon
delivery to the Company of written notice of termination by Executive for any
reason other than for Good Reason;

     

    3.1.5           upon
delivery to Executive of written notice of termination by the Company for
Cause;

     

    3.1.6           upon
delivery of written notice of termination from Executive to the Company for Good
Reason, provided, however, prior to any
such termination by Executive pursuant to this Section 3.1.6, Executive shall
have advised the Company in writing within fifteen (15) days of the occurrence
of any circumstances that would constitute Good Reason, and the Company has not
cured such circumstances within 15 days following receipt of Executive’s written
notice, with the exception of only five (5) days written notice in the event the
Company reduces Executive’s salary without Executive’s consent or fails to pay
Executive any compensation due him; or

     

    3.1.7           upon
delivery to Executive of written notice of termination by the Company without
Cause.

     

    3.2.           Certain Definitions.
For purposes of this Agreement, the following terms shall have the following
meanings:

     

    3.2.1           “Cause” shall mean, in
the context of a basis for termination by the Company of Executive’s employment
with the Company, that:

     

    (i)               
Executive materially breaches any obligation, duty, covenant or agreement under
this Agreement, which breach is not cured or corrected within thirty
(30) days of written notice thereof from the Company (except for breaches
of Article IV of this Agreement, which cannot be cured and for which the Company
need not give any opportunity to cure); or

     

    (ii)              
Executive commits any act of misappropriation of funds or embezzlement;
or

     

    (iii)             
Executive commits any act of fraud; or

     

    (iv)             
Executive is indicted of, or pleads guilty or nolo contendere with respect
to, theft, fraud, a crime involving moral turpitude, or a felony under federal
or applicable state law.

     

    3.2.2           
“Good Reason”
shall mean, in the context of a basis for termination by Executive of his
employment with the Company (a) without Executive’s consent, his position or
duties are modified by the Company to such an extent that his duties are no
longer consistent with the position of CEO of the Company, (b) there has been a
material breach by the Company of a material term of this Agreement which
continues uncured following thirty (30) days after such breach, or (c)
Executive’s compensation as set forth hereunder is reduced without Executive’s
consent, or the Company fails to pay to Executive any compensation due to him
hereunder upon five (5) days written notice from Executive informing the Company
of such failure.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    3.3.           “Termination Date”
shall mean the date on which Executive’s employment with the Company hereunder
is terminated

     

    3.4.           Effect of
Termination.  In the event that Executive’s employment
hereunder is terminated in accordance with the provisions of this Agreement,
Executive shall be entitled to the following:

     

    3.4.1           If
Executive’s employment is terminated pursuant to Sections 3.1.1 (death), 3.1.2
(disability), 3.1.3 (five-year anniversary) or 3.1.5 (by the Company for Cause),
Executive shall be entitled to salary accrued through the Termination Date and
no other benefits other than as required under the terms of employee benefit
plans in which Executive was participating as of Termination Date.

     

    3.4.2           If
Executive’s employment is terminated pursuant to Section 3.1.4 (without Cause by
the Executive), by Executive pursuant to Section 3.1.6 (Good Reason), or
pursuant to Section 3.1.7 (without Cause by the Company), Executive shall be
entitled to continue to receive the salary at the rate in effect upon the
Termination Date of employment for six (6) months following the Termination
Date, payable in accordance with the Company’s normal payroll practices and
policies, as if Executive’s employment had not terminated.  Executive
shall be entitled to no other post-employment benefits except for benefits
payable under applicable benefit plans in which Executive is entitled to
participate pursuant to Section 2.5 hereof through the Termination Date, subject
to and in accordance with the terms of such plans.

     

    3.4.3           As
a condition to Executive’s right to receive any benefits pursuant to Section
3.4.2 of this Agreement, (A) Executive must execute and deliver to the Company a
written release in form and substance satisfactory to the Company, of any and
all claims against the Company and all directors and officers of the Company
with respect to all matters arising out of Executive’s employment hereunder, or
the termination thereof (other than claims for entitlements under the terms of
this Agreement or plans or programs of the Company in which Executive has
accrued a benefit); and (B) Executive must not breach any of his covenants and
agreements under Section 1.3 and Article IV of this Agreement, which continue
following the Termination Date.

     

    3.4.4           In
the event of termination of Executive’s employment pursuant to Section 3.1.5 (by
the Company for Cause), and subject to applicable law and regulations, the
Company shall be entitled to offset against any payments due Executive the loss
and damage, if any, which shall have been suffered by the Company as a result of
the acts or omissions of Executive giving rise to termination.  The
foregoing shall not be construed to limit any cause of action, claim or other
rights, which the Company may have against Executive in connection with such
acts or omissions.

     

    3.4.5           Upon
termination of Executive’s employment hereunder, or on demand by the Company
during the term of this Agreement, Executive will immediately deliver to the
Company, and will not keep in his possession, recreate or deliver to anyone
else, any and all Company property, as well as all devices and equipment
belonging to the Company (including computers, handheld electronic devices,
telephone equipment, and other electronic devices), Company credit cards,
records, data, notes, notebooks, reports, files, proposals, lists,
correspondence, specifications, drawings blueprints, sketches, materials,
photographs, charts, all documents and property, and reproductions of any of the
aforementioned items that were developed by Executive pursuant to his employment
with the Company, obtained by Executive in connection with his employment with
the Company, or otherwise belonging to the Company, its successors or assigns,
including, without limitation, those records maintained pursuant to this
Agreement.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    3.4.6           Executive
also agrees to keep the Company advised of his home and business address for a
period of three (3) years after termination of Executive’s employment hereunder,
so that the Company can contact Executive regarding his continuing obligations
provided by this Agreement.  In the event that Executive’s employment
hereunder is terminated, Executive agrees to grant consent to notification by
the Company to Executive’s new employer about his obligations under this
Agreement.

     

    3.5.           Consulting.  During
the period that Executive is receiving payments pursuant to
subsection 3.4.2 above, Executive shall be available, subject to his other
reasonable commitments or obligations made or incurred in mitigation of the
termination of his employment, by telephone, email or fax, as a consultant to
the Company, without further compensation, to consult with its officers and
directors regarding projects and/or tasks as defined by the Board.

     

    ARTICLE
IV.

     

    INVENTIONS;
CONFIDENTIAL/TRADE SECRET INFORMATION AND RESTRICTIVE COVENANTS

     

    4.1.           Inventions.  All
processes, technologies and inventions relating to the business of the Company
(collectively, “Inventions”),
including new contributions, improvements, ideas, discoveries, trademarks and
trade names, conceived, developed, invented, made or found by Executive, alone
or with others, during his employment by the Company, whether or not patentable
and whether or not conceived, developed, invented, made or found on the
Company’s time or with the use of the Company’s facilities or materials, shall
be the property of the Company and shall be promptly and fully disclosed by
Executive to the Company.  Executive shall perform all necessary acts
(including, without limitation, executing and delivering any confirmatory
assignments, documents or instruments requested by the Company) to assign or
otherwise to vest title to any such Inventions in the Company and to enable the
Company, at its sole expense, to secure and maintain domestic and/or foreign
patents or any other rights for such Inventions.

     

    4.2.           Confidential/Trade Secret
Information/Non-Disclosure.

     

    4.2.1           Confidential/Trade Secret
Information Defined.  During the course of Executive’s
employment, Executive will have access to various Confidential/Trade Secret
Information of the Company and information developed for the
Company.  For purposes of this Agreement, the term “Confidential/Trade Secret
Information” is information that is not generally known to the public
and, as a result, is of economic benefit to the Company in the conduct of its
business, and the business of the Company’s subsidiaries.  Executive
and the Company agree that the term “Confidential/Trade Secret
Information” includes but is not limited to all information developed or
obtained by the Company, including its affiliates, and predecessors, and
comprising the following items, whether or not such items have been reduced to
tangible form (e.g., physical writing, computer hard drive, disk, tape,
etc.):  all methods, techniques, processes, ideas, research and
development, product designs, engineering designs, plans, models, production
plans, business plans, add-on features, trade names, service marks, slogans,
forms, pricing structures, menus, business forms, marketing programs and plans,
layouts and designs, financial structures, operational methods and tactics, cost
information, the identity of and/or contractual arrangements with suppliers
and/or vendors, accounting procedures, and any document, record or other
information of the Company relating to the above.  Confidential/Trade
Secret Information includes not only information directly belonging to the
Company which existed before the date of this Agreement, but also information
developed by Executive for the Company, including its subsidiaries, affiliates
and predecessors, during the term of Executive’s employment with the
Company.  Confidential/Trade Secret Information does not include any
information which (a) was in the lawful and unrestricted possession of Executive
prior to its disclosure to Executive by the Company, its subsidiaries,
affiliates or predecessors, (b) is or becomes generally available to the public
by lawful acts other than those of Executive after receiving it, or (c) has been
received lawfully and in good faith by Executive from a third party who is not
and has never been an executive of the Company, its subsidiaries, affiliates or
predecessors, and who did not derive it from the Company, its subsidiaries,
affiliates or predecessors.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    4.2.2           Restriction on Use of
Confidential/Trade Secret Information.  Executive agrees that
his/her use of Confidential/Trade Secret Information is subject to the following
restrictions for an indefinite period of time so long as the Confidential/Trade
Secret Information has not become generally known to the public:

     

    (i)               Non-Disclosure.  Executive
agrees that he will not publish or disclose, or allow to be published or
disclosed, Confidential/Trade Secret Information to any person without the prior
written authorization of the Company unless pursuant to or in connection with
Executive’s job duties to the Company under this Agreement; and

     

    (ii)             
Non-Removal/Surrender.  Executive
agrees that he will not remove any Confidential/Trade Secret Information from
the offices of the Company or the premises of any facility in which the Company
is performing services, except pursuant to his duties under this
Agreement.  Executive further agrees that he shall surrender to the
Company all documents and materials in his possession or control which contain
Confidential/Trade Secret Information and which are the property of the Company
upon the termination of his employment with the Company, and that he shall not
thereafter retain any copies of any such materials.

     

    4.2.3           Prohibition Against Unfair
Competition/ Non-Solicitation of Customers.  Executive agrees
that at no time after his employment with the Company will he engage in
competition with the Company while making any use of the Confidential/Trade
Secret Information, or otherwise exploit or make use of the Confidential/Trade
Secret Information. Executive agrees that during the six-month period following
the Termination Date, he will not directly or indirectly accept or solicit, in
any capacity, the business of any customer of the Company with whom Executive
worked or otherwise had access to the Confidential/Trade Secret Information
pertaining to the Company’s business with such customer during the last year of
Executive’s employment with the Company, or solicit, directly or indirectly, or
encourage any of the Company’s customers or suppliers to terminate their
business relationship with the Company, or otherwise interfere with such
business relationships.

     

    4.3.           Non-Solicitation of
Employees.  Employee agrees that during the six-month period
following the Termination Date, he shall not, directly or indirectly, solicit or
otherwise encourage any employees of the Company to leave the employ of the
Company, or solicit, directly or indirectly, any of the Company’s employees for
employment.

     

    4.4.           Non-Solicitation During
Employment.  During his employment with the Company, Executive
shall not: (a) interfere with the Company’s business relationship with its
customers or suppliers, (b) solicit, directly or indirectly, or otherwise
encourage any of the Company’s customers or suppliers to terminate their
business relationship with the Company, or (c) solicit, directly or indirectly,
or otherwise encourage any employees of the Company to leave the employ of the
Company, or solicit any of the Company’s employees for employment.

     

    4.5.           Conflict of
Interest.  During Executive’s employment with the Company,
Executive must not engage in any work, paid or unpaid, that creates an actual
conflict of interest with the Company.

     

    4.6.           Breach of
Provisions.  If Executive materially breaches any of the
provisions of this Article IV, or in the event that any such breach is
threatened by Executive, in addition to and without limiting or waiving any
other remedies available to the Company at law or in equity, the Company shall
be entitled to immediate injunctive relief in any court, domestic or foreign,
having the capacity to grant such relief, to restrain any such breach or
threatened breach and to enforce the provisions of this Article IV.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    4.7.           Reasonable
Restrictions.  The Parties acknowledge that the foregoing
restrictions, as well as the duration and the territorial scope thereof as set
forth in this Article IV, are under all of the circumstances reasonable and
necessary for the protection of the Company and its business

     

    4.8.           Specific
Performance.  Executive acknowledges and agrees that the
Company’s remedies at law for a breach or threatened breach of any of the
provisions of Sections 1.3, 4.2, 4.3 or 4.4 hereof would be inadequate and, in
recognition of this fact, Executive agrees that, in the event of such a breach
or threatened breach, in addition to any remedies at law, the Company, without
posting any bond, shall be entitled to obtain equitable relief in the form of
specific performance, temporary restraining order, temporary or permanent
injunction or any other equitable remedy which may then be
available.

     

    ARTICLE
V.

     

    ARBITRATION

     

    5.1.           Scope.  To
the fullest extent permitted by law, Executive and the Company agree to the
binding arbitration of any and all controversies, claims or disputes between
them arising out of or in any way related to this Agreement, the employment
relationship between the Company and Executive and any disputes upon termination
of employment, including but not limited to breach of contract, tort,
discrimination, harassment, wrongful termination, demotion, discipline, failure
to accommodate, family and medical leave, compensation or benefits claims,
constitutional claims; and any claims for violation of any local, state or
federal law, statute, regulation or ordinance or common law.  For the
purpose of this agreement to arbitrate, references to “Company” include all
subsidiaries or related entities and their respective executives, supervisors,
officers, directors, agents, pension or benefit plans, pension or benefit plan
sponsors, fiduciaries, administrators, affiliates and all successors and assigns
of any of them, and this agreement to arbitrate shall apply to them to the
extent Executive’s claims arise out of or relate to their actions on behalf of
the Company.

     

    5.2.           Arbitration
Procedure.  To commence any such arbitration proceeding, the
party commencing the arbitration must provide the other party with written
notice of any and all claims forming the basis of such right in sufficient
detail to inform the other party of the substance of such claims.  In
no event shall this notice for arbitration be made after the date when
institution of legal or equitable proceedings based on such claims would be
barred by the applicable statute of limitations.  The arbitration will
be conducted in Houston, Texas, by a single neutral arbitrator and in accordance
with the then-current rules for resolution of employment disputes of the
American Arbitration Association (“AAA”).  The
Arbitrator is to be selected by the mutual agreement of the
Parties.  If the Parties cannot agree, the Superior Court will select
the arbitrator.  The parties are entitled to representation by an
attorney or other representative of their choosing.  The arbitrator
shall have the power to enter any award that could be entered by a judge of the
trial court of the State of Texas, and only such power, and shall follow the
law.  The award shall be binding and the Parties agree to abide by and
perform any award rendered by the arbitrator.  The arbitrator shall
issue the award in writing and therein state the essential findings and
conclusions on which the award is based.  Judgment on the award may be
entered in any court having jurisdiction thereof.  The losing Party in
the arbitration hearing shall bear the costs of the arbitration filing and
hearing fees and the cost of the arbitrator.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    ARTICLE
VI.

     

    MISCELLANEOUS

     

    6.1.           Binding Effect;
Assignment.  This Agreement shall be binding upon and inure to
the benefit of the Parties and their respective legal representatives, heirs,
successors and assigns.  Executive may not assign any of his rights or
obligations under this Agreement.  The Company may assign its rights
and obligations under this Agreement to any successor entity.

     

    6.2.           Notices.  Any
notice provided for herein shall be in writing and shall be deemed to have been
given or made (a) when personally delivered or (b) when sent by telecopier and
confirmed within 48 hours by letter mailed or delivered to the party to be
notified at its or his address set forth herein; or three (3) days after being
sent by registered or certified mail, return receipt requested (or by equivalent
currier with delivery documentation such as FEDEX or UPS) to the address of the
other party set forth or to such other address as may be specified by notice
given in accordance with this section 6.2:

     

    

     

    
      
        	
                If to the Company:

              	
                Vertex
      Energy, Inc.

                1331
      Gemini , Suite 103

                Houston,
      Texas 77058

                Telephone:
      ___________

                Facsimile:
      ___________

                Attention:
      _____________

                 

              

      

    

    

    
      
        	
                If to the Executive:

              	
                Benjamin
      P. Cowart

                XXXX XXXX XXX
      XXXXX

                XXXXXXX, XXXXX
      XXXXX

                 

                Telephone:
      ___________

                Facsimile:
      ___________

                Attention:
      _____________

                 

              

      

    

    

    6.3.           Severability.  If
any provision of this Agreement, or portion thereof, shall be held invalid or
unenforceable by a court of competent jurisdiction, such invalidity or
unenforceability shall attach only to such provision or portion thereof, and
shall not in any manner affect or render invalid or unenforceable any other
provision of this Agreement or portion thereof, and this Agreement shall be
carried out as if any such invalid or unenforceable provision or portion thereof
were not contained herein.  In addition, any such invalid or
unenforceable provision or portion thereof shall be deemed, without further
action on the part of the parties hereto, modified, amended or limited to the
extent necessary to render the same valid and enforceable.

     

    6.4.           Waiver.  No
waiver by a Party of a breach or default hereunder by the other party shall be
considered valid, unless expressed in a writing signed by such first party, and
no such waiver shall be deemed a waiver of any subsequent breach or default of
the same or any other nature.

     

    6.5.           Entire
Agreement.  This Agreement sets forth the entire agreement
between the Parties with respect to the subject matter hereof, and supersedes
any and all prior agreements between the Company and Executive, whether written
or oral, relating to any or all matters covered by and contained or otherwise
dealt with in this Agreement.  This Agreement does not constitute a
commitment of the Company with regard to Executive’s employment, express or
implied, other than to the extent expressly provided for herein.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    6.6.           Amendment.  No
modification, change or amendment of this Agreement or any of its provisions
shall be valid, unless in a writing signed by the Parties and approved by the
Compensation Committee.

     

    6.7.           Authority.  The
Parties each represent and warrant that it/he has the power, authority and right
to enter into this Agreement and to carry out and perform the terms, covenants
and conditions hereof.

     

    6.8.           Attorneys’
Fees.  If either party hereto commences an arbitration or other
action against the other party to enforce any of the terms hereof or because of
the breach by such other party of any of the terms hereof, the prevailing party
shall be entitled, in addition to any other relief granted, to all actual
out-of-pocket costs and expenses incurred by such prevailing party in connection
with such action, including, without limitation, all reasonable attorneys’ fees,
and a right to such costs and expenses shall be deemed to have accrued upon the
commencement of such action and shall be enforceable whether or not such action
is prosecuted to judgment.

     

    6.9.           Captions.  The
captions, headings and titles of the sections of this Agreement are inserted
merely for convenience and ease of reference and shall not affect or modify the
meaning of any of the terms, covenants or conditions of this
Agreement.

     

    6.10.           Governing
Law.  This Agreement, and all of the rights and obligations of
the Parties in connection with the employment relationship established hereby,
shall be governed by and construed in accordance with the substantive laws of
the State of Texas without giving effect to principles relating to conflicts of
law.

     

    6.11.           Survival.  The
termination of Executive’s employment with the Company pursuant to the
provisions of this Agreement shall not affect Executive’s obligations to the
Company hereunder which by the nature thereof are intended to survive any such
termination, including, without limitation, Executive’s obligations under
Article IV of this Agreement.

     

    [Signature
page follows]

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

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

     

    

    
      	
              “COMPANY”

            	
              VERTEX
      ENERGY, INC.,

              a
      Nevada corporation

               

              By: 
      /s/
      Chris Carlson

              Name:
      Chris Carlson

              Title:   Secretary

               

               

               

            
	
              “EXECUTIVE”

            	
              
                /s/
      Benjamin P. Cowart

              

              Benjamin
      P. Cowart

               

               

               

            

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    EXHIBIT
A

    

    It is
acknowledged and agreed that the following actions, business transactions,
agreements and undertakings may be undertaken by Executive:

    

    
      	
               
      

            	
              ·

            	
              Executive
      can serve as an officer, director or manager of any of the private
      companies with whom he is currently affiliated, including Vertex Energy,
      LP, VTX, Inc., Cross Road Carriers, Vertex Recovery, H&H Oil, Arrow,
      Cedar Marine Terminal, Vertex Residual Management, B&S Cowart, FLP,
      Vertex Green, LP or Vertex Processing (collectively, the “Affiliated
      Companies”);

            

    

    

    
      	
               
      

            	
              ·

            	
              Executive
      may own an interest in or shares or membership units in any of the
      Affiliated Companies.  Executive may earn a fee for providing
      services to the Affiliated
Companies;

            

    

    

    
      	
               
      

            	
              ·

            	
              Through
      the Affiliated Companies, the Executive can operate in the collection
      generator business; buy, collect and transport and process used oil, crude
      oil, refined products, chemicals and oily water; and collect, recycle and
      process petroleum waste materials, such as, but not limited to, oily
      water, sludges, tank bottoms, and mixed hydrocarbon
    materials;

            

    

    

    
      	
               
      

            	
              ·

            	
              Vertex
      Recovery or its subsidiaries may sell feedstock to the Company on a fair
      market basis and receive a commission or fee based on such sales, as
      determined by a yet to be drafted agreement between Vertex Recovery and
      the Company;

            

    

    

    
      	
               
      

            	
              ·

            	
              Executive
      may market and source feedstock to the best markets through any of the
      Affiliated Companies;

            

    

    

    
      	
               
      

            	
              ·

            	
              Cedar
      Marine Terminal may license (pursuant to a royalty free, perpetual, and
      non-exclusive license) the rights to Demetalization Technology on terms
      agreeable to the Company and Cedar Marine Terminal.  Cedar
      Marine Terminal may also charge the Company for terminalling and storage
      costs for the Company’s products.  Finally, Cedar Marine
      Terminal will enter into an agreement with the Company whereby the Company
      leases the land which its operations take place on, on terms to be
      mutually agreed to between the
parties;

            

    

    

    
      	
               
      

            	
              ·

            	
              Cross
      Road Carriers may transport the Company’s products from time to time, on
      substantially similar terms as Cross Road Carriers charges its other
      clients;

            

    

    

    
      	
               
      

            	
              ·

            	
              Any
      Affiliated Party may sell products, equipment or materials to the Company
      on terms mutually agreeable between the Company and such Affiliated
      Party;

            

    

    

    
      	
               
      

            	
              ·

            	
              Vertex
      Residual Management may contract with the Company or with Vertex LP on
      behalf of the Company to provide the Company environmental compliance,
      regulation and oversight services on terms mutually agreeable between the
      parties;

            

    

    

    
      	
               
      

            	
              ·

            	
              Vertex
      Green may focus on the development of renewable energy such as Biodiesel,
      which entity shall be outside of the Company;
  and

            

    

    

    
      	
               
      

            	
              ·

            	
              Any
      other actions, business transactions, agreements and undertakings which
      the Executive has received approval of a majority of the independent
      members of the Board of Directors to enter into and/or
      undertake.

            

    

    
      
        
        

      

      
        -12-

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