SEC Contract Filing

Filing Date: 2024-05-08

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>3
<FILENAME>ea020529001ex10-3_altoingred.htm
<DESCRIPTION>FORM OF PERFORMANCE SHARE AGREEMENT UNDER 2016 STOCK INCENTIVE PLAN
<TEXT>
<HTML>
<HEAD>
 <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ALTO INGREDIENTS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PERFORMANCE SHARE AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS PERFORMANCE SHARE AGREEMENT
(this &ldquo;<U>Agreement</U>&rdquo;) dated and effective as of __________ (the &ldquo;<U>Grant Date</U>&rdquo;), by and between Alto
Ingredients, Inc., a Delaware corporation (the &ldquo;<U>Company</U>&rdquo;) and &laquo;First_Name&raquo; &laquo;Last_Name&raquo; (&ldquo;<U>Employee</U>&rdquo;)
is entered into as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A. WHEREAS,
the Company has established the Alto Ingredients, Inc. 2016 Stock Incentive Plan (as amended and as may be further amended, the &ldquo;<U>Plan</U>&rdquo;),
a copy of which has previously been provided to Employee or is provided with this Agreement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">B. WHEREAS,
the Compensation Committee of the Board of Directors of the Company (the &ldquo;<U>Committee</U>&rdquo;), acting as Plan Administrator,
has determined that Employee be granted Performance Shares (as defined below) subject to the terms of the Plan and this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Capitalized terms used but
not otherwise defined herein shall have the respective meanings ascribed to them in the Plan. References herein to the Company shall also
include, where and as applicable, any Parent or Subsidiary of the Company in the same manner used in the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, the parties
hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1. <B><U>Grant
of Performance Shares</U></B>. Subject to the terms and conditions of this Agreement and of the Plan, the Company hereby grants to Employee
&laquo;First_Name&raquo; &laquo;Last_Name&raquo;, &laquo;Total_of_Shares_in_Words&raquo; (&laquo;Total_of_Shares&raquo;) Performance Shares
(the &ldquo;<U>Target Performance Shares</U>&rdquo;), subject to adjustment in accordance with Plan and this Agreement. The Company shall
issue to Employee as soon as practicable following the applicable Vesting Date (as defined below) a number of Shares (as defined below)
equal to the number of Performance Shares vested in accordance with this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2. <B><U>Definitions</U></B>.
For purposes of this Agreement, the following terms have the meanings ascribed to them below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a) &ldquo;<U>Achievement
Percentage</U>&rdquo; means the applicable percentage specified with respect to the &ldquo;Threshold,&rdquo; &ldquo;Target&rdquo; and
&ldquo;Maximum&rdquo; levels for the Performance Measure, or a percentage determined using linear interpolation if actual performance
falls between any two specified levels, all as determined under <U>Section&nbsp; 3(a)(iii)</U> below. In the event that actual performance
does not meet the &ldquo;Threshold&rdquo; level for the Performance Measure, the &ldquo;Achievement Percentage&rdquo; with respect to
such Performance Measure shall be zero.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b) &ldquo;<U>Adjusted
EBITDA</U>&rdquo; means, except as otherwise defined by the Committee, the unaudited consolidated net income or loss before interest expense,
interest income, provision for or benefit from income taxes, asset impairments, losses or gains on extinguishment of debt, unrealized
derivative gains and losses, acquisition-related expense and depreciation and amortization expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; t