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                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">As
      filed with the Securities and Exchange Commission on October 2,
      2009</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
No. ___________</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WASHINGTON,
D.C. 20549</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM
S-8</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">VERTEX ENERGY,
INC.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(EXACT
NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline">NEVADA</font></font></div>
                  </td>
                  <td valign="top" width="20%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline">94-3439569</font></font></div>
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(STATE
      OR OTHER JURISDICTION <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">IDENTIFICATION
      NO.)</font></font></div>
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                  <td valign="top" width="20%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(IRS
      EMPLOYER OF
INCORPORATION)</font></div>
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">1331 GEMINI STREET, HOUSTON,
TEXAS 77058</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ADDRESS
OF PRINCIPAL EXECUTIVE OFFICES)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">VERTEX
ENERGY, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">2009 STOCK INCENTIVE PLAN,</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">VERTEX ENERGY, INC.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">2008 STOCK INCENTIVE PLAN, AND</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">CERTAIN OTHER STOCK
OPTIONS</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(FULL
TITLE OF THE PLAN)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benjamin
P. Cowart</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
Executive Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1331
Gemini Street</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Houston,
Texas 77058</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">866-660-8156</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Name,
address, and telephone number, including area code, of agent for
service)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Copy
To:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">David M.
Loev</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Loev
Law Firm, PC</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6300 West
Loop South, Suite 280</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bellaire,
Texas 77401</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(713)
524-4110</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
by check mark whether the Registrant is a large accelerated filer, and
accelerated filer, a non-accelerated filer, or a smaller reporting
company.&#160;&#160;See the definitions of &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">large accelerated
filer,</font>&#8221; &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">accelerated filer</font>&#8221;
and &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">smaller reporting
company</font>&#8221; in Rule 12b-2 of the Exchange Act.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Large
      accelerated filer&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">&#168;</font></font></div>
              </td>
              <td align="left" valign="top" width="50%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Accelerated
      filer&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">&#168;</font></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Non-accelerated
      filer&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">&#168;</font></font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Smaller
      reporting company&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">x</font></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">CALCULATION OF REGISTRATION
FEE</font></font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Title
      of Securities To Be Registered</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      To Be Registered</font></div>
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            <td valign="top" width="15%" style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      Maximum Offering Price Per Share (1)</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      Maximum Aggregate Offering Price</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      Of Registration Fee</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common
      Stock, $0.001 par value</font></div>
            </td>
            <td valign="middle" width="15%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,575,000
      (2)</font></div>
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            <td valign="middle" width="15%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$1.01</font></div>
            </td>
            <td valign="middle" width="15%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$2,777,500</font></div>
            </td>
            <td valign="middle" width="15%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$198.04</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
Calculated in accordance with Rule 457(c) solely for the purpose of determining
the registration fee. The offering price is based on the last trading price of
the Registrant&#8217;s common stock as reported on the OTC Bulletin Board as of
September 29, 2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)
Represents the maximum number of shares of common stock which may be issued
pursuant to awards under the Registrant&#8217;s 2008 Stock Incentive Plan and 2009
Stock Incentive Plan (collectively the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Plans</font>&#8221;), of which
Stock Options to purchase&#160;466,500&#160;shares of common
stock&#160;(including 10,000 Stock Options which have since expired as
unexercised) and which Stock Options to purchase 815,000 shares of common stock,
respectively, have been granted pursuant to such Plans to date.&#160;&#160;This
number also represents Stock Options to purchase an aggregate of 400,000 of our
shares of common stock which were granted outside of the
Plans.&#160;&#160;Pursuant to Rule 416(a) under the Securities Act of 1933, as
amended (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Securities Act</font>&#8221;),
this registration statement is deemed to register an indeterminate amount of
such additional number of shares of the Registrant&#8217;s common stock as may be
issuable pursuant to stock split, stock dividend or the like.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PART
I</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INFORMATION
REQUIRED IN SECTION 10(A) PROSPECTUS</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
document(s) containing the information specified in Part I will be sent or given
to employees participating in the Plan as specified by Rule 428(b)(1) of the
Securities Act of 1933, as amended (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Securities Act</font>&#8221;).
Such documents are not being filed with the Securities and Exchange Commission
(the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Commission</font>&#8221;) either
as part of this Registration Statement or as prospectuses or prospectus
supplements pursuant to Rule 424 of the Securities Act. Such documents and the
documents incorporated by reference in this Registration Statement pursuant to
Item&#160;3 of Part II hereof, taken together, constitute a prospectus that
meets the requirements of Section&#160;10(a) of the Securities Act.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Participants
are further advised that the documents incorporated by reference in Item 3 of
Part II of the Registration Statement, of which this prospectus is a part of,
and which are incorporated by reference to this prospectus, are available
without charge, upon written or oral request to the
Company.&#160;&#160;Additionally, other documents required to be delivered to
employees pursuant to Rule 428(b) of the Securities Act (&#167;230.428(b)) are
available without charge, upon written or oral request to the
Company.&#160;&#160;Such requests may be made to:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Christopher
Carlson</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Secretary</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1331
Gemini Street</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Houston,
Texas 77058</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">866-660-8156</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">PROSPECTUS</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;1,671,500
SHARES</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">VERTEX ENERGY,
INC.</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Common Stock, $0.001 par
value</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;This
prospectus relates to the reoffer and resale of up to 1,671,500 shares of Vertex
Energy, Inc.&#8217;s (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Company</font>&#8221;, &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">we</font>&#8221;, &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">us</font>&#8221;, and &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Vertex&#8217;s</font>&#8221;) common
stock by certain selling shareholders who may be considered our &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">affiliates.</font>&#8221; These
selling shareholders have acquired or may acquire these shares upon the exercise
of stock options or pursuant to restricted stock awards or other awards granted
or available to be granted under our 2008 Stock Incentive Plan and 2009 Stock
Incentive Plan (collectively the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Plans</font>&#8221;), and in
connection with other Stock Option Agreements pursuant to which we granted stock
options to purchase 400,000 shares of our common stock outside of the
Plans.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
selling shareholders will determine when they will sell their shares, and may
sell their shares at the then-prevailing market price or at prices negotiated at
the time of sale. We will not receive any proceeds from these sales. The brokers
and dealers that the selling shareholders may utilize in selling their shares
may receive compensation in the form of underwriting discounts, concessions or
commissions from the sellers or purchasers of the shares. See &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Plan of
Distribution.</font>&#8221; We will bear all expenses in connection with the
preparation of this prospectus.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our
common stock is traded on the Over-The-Counter Bulletin Board under the symbol
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">VTNR.</font>&#8221; On
September 23 2009, the last trading price for the common stock, as reported by
the Over-The-Counter Bulletin Board, was $1.18 per share. You are urged to
obtain current market quotations for the common stock.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our
principal executive offices are located at 1331 Gemini Street, Houston, Texas
77058, and our telephone number is (866) 660-8156.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">This investment
involves risk. See &#8220;</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic; TEXT-DECORATION: underline">Risk
Factors</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">&#8221; beginning at
page 5.</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">NEITHER THE SECURITIES AND EXCHANGE
COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF
THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The date
of this Prospectus is October 2, 2009.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-1-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">TABLE OF CONTENTS</font></font></div>
    <div>
      <div align="right">
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td align="left" valign="bottom" width="63%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="right" colspan="2" valign="bottom" width="4%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Page</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">PROSPECTUS
      SUMMARY</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">RISK
      FACTORS</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">5</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">SPECIAL
      NOTE REGARDING FORWARD-LOOKING INFORMATION</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">USE
      OF PROCEEDS</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">SELLING
      SHAREHOLDERS</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">PLAN
      OF DISTRIBUTION</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">21</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">DESCRIPTION
      OF SECURITIES</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">22</font></div>
              </td>
              <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">LEGAL
      MATTERS</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">23</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">WHERE
      YOU CAN FIND MORE INFORMATION</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">23
      </font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">INCORPORATION
      OF CERTAIN DOCUMENTS BY REFERENCE</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">24</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="63%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">DISCLOSURE
      OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT
      LIABILITIES</font></div>
              </td>
              <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">24</font></div>
              </td>
              <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
        </table>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
should rely only on the information contained in, or incorporated by reference
into, this prospectus and in any prospectus supplement or amendment. We have not
authorized any other person to provide you with different information.
Information contained on our website does not constitute a part of this
prospectus. The information in this prospectus may only be accurate as of the
date appearing on the cover page of this prospectus, regardless of the time this
prospectus is delivered or common stock is sold.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">PROSPECTUS
SUMMARY</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 54pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">This summary highlights information
contained in this prospectus. While we believe that this summary highlights some
of the most important information about Vertex Energy, Inc. and this offering,
you should read this entire prospectus and the documents incorporated by
reference carefully, including &#8220;</font><font style="DISPLAY: inline; FONT-STYLE: italic; TEXT-DECORATION: underline">Risk
Factors,</font><font style="DISPLAY: inline; FONT-STYLE: italic">&#8221; before
deciding to invest in our common stock. References to &#8220;</font><font style="DISPLAY: inline; FONT-STYLE: italic; TEXT-DECORATION: underline">we,</font><font style="DISPLAY: inline; FONT-STYLE: italic">&#8221; &#8220;</font><font style="DISPLAY: inline; FONT-STYLE: italic; TEXT-DECORATION: underline">us,</font><font style="DISPLAY: inline; FONT-STYLE: italic">&#8221; &#8220;</font><font style="DISPLAY: inline; FONT-STYLE: italic; TEXT-DECORATION: underline">our,</font><font style="DISPLAY: inline; FONT-STYLE: italic">&#8221; &#8220;</font><font style="DISPLAY: inline; FONT-STYLE: italic; TEXT-DECORATION: underline">Vertex,</font><font style="DISPLAY: inline; FONT-STYLE: italic">&#8221; or the &#8220;</font><font style="DISPLAY: inline; FONT-STYLE: italic; TEXT-DECORATION: underline">Company</font><font style="DISPLAY: inline; FONT-STYLE: italic">&#8221; in this prospectus mean Vertex
Energy, Inc.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Business
Overview</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="cautionarystatement">We were formed as a Nevada corporation on May 14,
2008.&#160;&#160;Pursuant to an Amended and Restated Agreement and Plan of
Merger dated May 19, 2008, by and between Vertex Holdings, L.P. (formerly Vertex
Energy, L.P.), a Texas limited partnership ("<font style="DISPLAY: inline; TEXT-DECORATION: underline">Vertex LP</font>"), us,
World Waste Technologies, Inc., a California corporation (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">WWT</font>&#8221; or &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">World Waste</font>&#8221;), Vertex
Merger Sub, LLC, a California limited liability company and our wholly-owned
subsidiary ("<font style="DISPLAY: inline; TEXT-DECORATION: underline">Merger
Subsidiary</font>"), and Benjamin P. Cowart, our Chief Executive Officer, as
agent for our shareholders (as amended from time to time, the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Merger Agreement</font>&#8221;).
Effective on April 16, 2009, World Waste merged with and into Merger Subsidiary,
with Merger Subsidiary continuing as the surviving corporation and becoming our
wholly-owned subsidiary (the "<font style="DISPLAY: inline; TEXT-DECORATION: underline">Merger</font>"). In
connection with the Merger, (i) each outstanding share of World Waste common
stock was cancelled and exchanged for 0.10 shares of our common stock; (ii) each
outstanding share of World Waste Series A preferred stock was cancelled and
exchanged for 0.4062 shares of our Series A preferred stock; and (iii) each
outstanding share of World Waste Series B preferred stock was cancelled and
exchanged for 11.651 shares of our Series A preferred stock.</a></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
as a result of the Merger, as the successor entity of World Waste, we assumed
World Waste&#8217;s filing obligations with the Securities and Exchange Commission
(the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Commission</font>&#8221;) and our
common stock began trading on the Over-The-Counter Bulletin Board under the
symbol &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">VTNR.OB</font>&#8221; effective
May 4, 2009 previously &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">WDWT.OB</font>&#8221;.&#160;&#160;Finally,
as a result of the Merger, the common stock of World Waste was effectively
reversed one for ten (10) as a result of the exchange ratios set forth in the
Merger, and unless otherwise noted, the impact of such effective reverse stock
split, created by the exchange ratio set forth above, is retroactively reflected
throughout this prospectus.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Description
of Business Activities:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
provide a range of services designed to aggregate, process, and recycle
industrial and commercial waste streams. We currently provide these services in
13 states, with our primary focus in the Gulf Coast Region of the United
States.&#160;&#160;Our primary focus is on the recycling of used motor oil and
other distressed hydrocarbon streams. This is accomplished (1) through our Black
Oil division, which aggregates used motor oil from third-party collectors and
manages the delivery of this feedstock primarily to third-party re-refining
facilities, as well as blenders, and (2) through our Refining and Marketing
division, which aggregates hydrocarbon streams from collectors and generators
and manages the delivery of the hydrocarbon products to a third-party facility
for further processing, and then manages the sale of the end products. In
addition, we are in the process of implementing a proprietary thermal/chemical
upgrading technology that will process used motor oil and convert it to higher
value products such as marine cutterstock and vacuum-gas
blendstock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
website address is <font style="DISPLAY: inline; FONT-STYLE: italic; TEXT-DECORATION: underline">www.vertexenergy.com</font>.
Information contained on our website or any other website does not constitute
part of this prospectus.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
Offering</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="middle" width="29%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="42%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Shares&#160;of&#160;common&#160;stock&#160;offered&#160;by&#160;Selling
      Shareholders:</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;</font></div>
            </td>
            <td align="left" valign="top" width="42%">
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            </td>
          </tr>
          <tr>
            <td valign="middle" width="29%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td colspan="2" valign="middle" width="43%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Offering
      price:</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;</font></div>
            </td>
            <td align="left" valign="top" width="42%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">The
      selling shareholders and any of their pledgees, assignees and
      successors-in-interest may sell any or all of their shares on any stock
      exchange, market or trading facility on which the securities are traded or
      in private transactions. The sales may be at fixed or negotiated
      prices.</font></div>
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            <td valign="middle" width="29%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td colspan="2" valign="middle" width="43%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Over-The-Counter
      Bulletin Board Trading Symbol:</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;</font></div>
            </td>
            <td align="left" valign="top" width="42%">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="102"><font style="DISPLAY: inline; FONT-WEIGHT: bold">RISK
FACTORS</font></a></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Benjamin
P. Cowart, the Chief Executive Officer and Chairman controls
Vertex.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benjamin
P. Cowart, Vertex&#8217;s Chairman and Chief Executive Officer, beneficially owns a
total of approximately 36% of the total outstanding shares of Vertex&#8217;s capital
stock, and holds the right to vote an additional 22% of Vertex&#8217;s capital stock
pursuant to voting agreements entered into with various shareholders of Vertex,
which voting agreements provide him the right to elect four (4) of Vertex&#8217;s five
(5) directors (with the fifth director being appointed by the shareholders of
Vertex&#8217;s Series A Preferred Stock). The voting agreements remain in effect until
April 16, 2012.&#160;&#160;As such, subject to the resale terms and conditions
of the voting agreements and the Lock-up Agreements which certain of Vertex&#8217;s
shareholders signed, until April 12, 2012, Mr.&#160;Cowart will have the right,
to appoint four (4) of Vertex&#8217;s five (5) directors, and therefore to exercise
significant control over Vertex, including making decisions with respect to
issuing additional shares, entering into mergers, asset sales, and other
fundamental transactions, and amending the terms of Vertex&#8217;s articles of
incorporation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex
owes a significant amount of money to Vertex LP in connection with certain
transactions affected pursuant to and in connection with the
Merger.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to an Operating Agreement (described below) entered into between Vertex and
Cedar Marine Terminals, L.P., a wholly-owned subsidiary of Vertex LP (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">CMT</font>&#8221;), in connection
with the Merger, Vertex has the right to a non-revocable, non-transferable,
royalty-free, perpetual (except as provided in the agreement) license to use the
technology associated with certain proprietary technology relating to the
re-refining of certain oil feedstock referred to as our &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Thermal/chemical extraction
technology</font>&#8221; in any market in the world (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">License</font>&#8221;), provided
that Vertex pays CMT the documented net development costs of the
Thermal/chemical extraction technology, estimated to be $1.4 million (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">R&amp;D Costs</font>&#8221;),
which have been paid in full to date.&#160;&#160; Additionally, pursuant to an
Asset Transfer Agreement and the terms of the Merger, Vertex is required to
assume $1.6 million of Vertex LP debt, of which approximately $85,000 has been
repaid to date.&#160;&#160;As such, Vertex will need to pay approximately
$1,515,000, to Vertex LP in connection with the assumption of the debt, which
funds Vertex does not currently have.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Moving
forward, Vertex will need to raise additional funding to pay the expenses
described above, and as such may need to seek additional debt or equity
financing. If debt financing is available and obtained, our interest expense may
increase and we may be subject to the risk of default, depending on the terms of
such financing. If equity financing is available and obtained it may result in
our shareholders experiencing significant dilution. If such financing is
unavailable, we may be forced to curtail our operations, which may cause the
value of our securities to decline in value and/or become
worthless.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex
has no long-term assets and needs to rely on its contracts and relationships
with Vertex LP and its affiliates and certain third parties, which could affect
Vertex&#8217;s ability to operate its business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
does not currently have any long-term assets, but instead its business is
comprised of the rights to various contracts and arrangements. As such, moving
forward, Vertex will need to rely on its relationships and agreements with
Vertex LP and its affiliates, including with the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
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            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">CrossRoad
      Carriers, for the transportation of some of Vertex&#8217;s feedstock and refined
      and re-refined petroleum products;</font></div>
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      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">CMT,
      which subleases terminal space to Vertex, and from which Vertex may
      purchase certain re-refining assets;
and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Vertex
      Residual Management Group LP, which will perform environmental compliance
      and regulatory oversight for
Vertex.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-5-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
Vertex has a right of first refusal to purchase the entities (including the
assets of such entities), there can be no assurance that Vertex will exercise
such right.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In the
event that any of the above-described relationships are terminated, Vertex may
be forced to spend significant resources to identify and secure alternative
sources to provide these services. There can be no assurance that Vertex will be
able to locate such alternative sources on terms acceptable to it, or at all. As
a result, Vertex may be unable to continue its operations in its current form,
may be required to expend significant resources identifying alternative sources
of services, and/or may be forced to expend significant resources to purchase
and/or manufacture long-term assets, the construction of which assets may take a
significant amount of time and capital to complete.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Holders
of shares of common stock will not have the right to vote for
directors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Due to
Mr. Cowart&#8217;s beneficial ownership of 36% of Vertex&#8217;s common stock and voting
agreements which are in place, which allow him to vote an additional 22% of
Vertex&#8217;s common stock for 4 of the 5 Directors of Vertex, at least one of whom
must be &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">independent</font>&#8221; as
defined by the New York Stock Exchange, Mr. Cowart will have the right to
appoint 4 of our 5 Directors for three years. The holders of Vertex&#8217;s
Series&#160;A preferred stock are entitled to elect the remaining Vertex
director. Accordingly, so long as the voting agreements remain in effect and the
shares of Vertex Series&#160;A Preferred Stock remain outstanding, the minority
holders of shares of Vertex common stock will not have the right to vote for the
election of directors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benjamin
P. Cowart, Vertex&#8217;s Chief Executive Officer and Chairman of the Board, owns and
is involved in other businesses that have relationships and agreements with
Vertex, including, but not limited to Vertex LP. These relationships may cause
conflicts of interest with Vertex.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benjamin
P. Cowart, Vertex&#8217;s Chief Executive Officer and Chairman of the Board, also
serves as the General Partner of and controls several other entities, including,
but not limited to Vertex LP, through VTX, Inc. (collectively, the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Vertex Entities</font>&#8221;),
that have entered into transactions with, supplied feedstock for, and performed
various business services for Vertex. These transactions and relationships
include the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;Cross
Road Carriers transports some of Vertex&#8217;s feedstock and refined and re-refined
petroleum products;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;Vertex
subleases terminal space from CMT and may purchase certain re-refining assets,
and perform certain other services for CMT;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;Vertex
Residual Management Group LP performs environmental compliance and regulatory
oversight for Vertex; and</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">Vertex Recovery collects used oil
      feedstock and sells it to
Vertex.</font></font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
has (1) a right of first refusal to match any third-party offer to purchase any
of the Vertex Entities on the terms and conditions set forth in such offer; and
(2) the option, exercisable in Vertex&#8217;s sole discretion any time after the
18-month anniversary of the closing of the merger and so long as Mr.&#160;Cowart
is employed by Vertex, to purchase all or any part of the outstanding stock of
any of the Vertex Entities owned by Vertex LP or VTX, Inc., at a price based on
an independent third-party valuation and appraisal of the fair market value of
such Vertex Entity (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Right of First
Refusal</font>&#8221;). Pursuant to the merger agreement, Vertex was required to form
a committee of its board of directors (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Related Party Transaction
Committee</font>&#8221;)&#160; including at least two &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">independent
directors</font>&#8221; (defined as any individuals who do not beneficially own more
than 5% of the outstanding voting shares of Vertex, are not employed by, or
officers of, Vertex or any entity related to Mr.&#160;Cowart, are not directors
or managers of any such company, are not family members of Mr.&#160;Cowart, and
would qualify as &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Independent
Directors</font>&#8221; as defined in the rules and regulations of the New York Stock
Exchange). The Related Party Transaction Committee is charged with the review
and pre-approval of any and all related party transactions, including between
Vertex and Vertex LP, Mr.&#160;Cowart, or any other company or individual which
may be affiliated with Mr.&#160;Cowart.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-6-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notwithstanding
the Right of First Refusal and the Related Party Transaction Committee,
perceived or actual conflicts of interest may exist between Mr.&#160;Cowart and
Vertex in connection with the Vertex Entities and/or any other entity which
Mr.&#160;Cowart may be affiliated and/or control in the future. Furthermore, if
any disagreement were to occur between Mr.&#160;Cowart and/or any Vertex Entity,
Vertex may be forced to find alternative suppliers and contractors to supply the
services or products then supplied by any of the Vertex Entities, which new
arrangements may not be on as favorable terms to Vertex, and/or Mr.&#160;Cowart
may be forced to make a decision between remaining in control of any of the
Vertex Entities and/or Vertex. Such perceived or actual conflicts of interest
may cause potential investors to not be willing to invest in Vertex, which could
make it harder for Vertex to raise funds through the sale of debt and/or equity
securities and/or cause Vertex&#8217;s securities to be devalued. As a result of these
perceived and/or actual conflicts of interest, the value of Vertex&#8217;s securities
may decrease in value and/or be valued less than similarly situated publicly
traded companies without such potential conflicts of interest.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex
has established preferred stock which can be designated by the Vertex Board of
Directors without shareholder approval and has established Series&#160;A
preferred stock, which gives the holders a liquidation preference and the
ability to convert such shares into Vertex&#8217;s common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
has 50,000,000 shares of preferred stock authorized which includes approximately
4.7&#160;million shares of Series&#160;A preferred stock issued and outstanding.
The Vertex Series&#160;A preferred stock has a liquidation preference of $1.49
per share. As a result, if Vertex were to dissolve, liquidate or sell its
assets, the holders of Vertex Series&#160;A preferred stock would have the right
to receive up to the first approximately $7.0&#160;million in proceeds from any
such transaction. Consequently, holders of Vertex common stock may receive less
consideration or no consideration in connection with such a transaction.
Furthermore, the conversion of Series&#160;A preferred stock into common stock
may cause substantial dilution to Vertex&#8217;s common shareholders. Additionally,
because Vertex&#8217;s board of directors is entitled to designate the powers and
preferences of the preferred stock without a vote of its shareholders, Vertex&#8217;s
shareholders will have no control over what designations and preferences
Vertex&#8217;s future preferred stock, if any, will have.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex&#8217;s
shareholders may have difficulty selling their shares because such shares will
likely be deemed &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">penny
stock.</font>&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since the
shares of Vertex common stock are not be listed on a national securities
exchange, if the trading price of such shares is below $5.00 per share, trading
in such shares will be subject to the requirements of certain rules promulgated
under the Securities Exchange Act of 1934, as amended (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Exchange Act</font>&#8221;), which
require additional disclosure by broker-dealers in connection with any trades
involving a stock defined as a penny stock (generally, any equity security not
listed on a national securities exchange that has a market price of less than
$5.00 per share, subject to certain exceptions). Such rules require the
delivery, prior to any penny stock transaction, of a disclosure schedule
explaining the penny stock market and the risks associated therewith and impose
various sales practice requirements on broker-dealers who sell penny stocks to
persons other than established customers and accredited investors (generally
defined as an investor with a net worth in excess of $1,000,000 or annual income
exceeding $200,000 individually or $300,000 together with a spouse). For these
types of transactions, the broker-dealer must make a special suitability
determination for the purchaser and have received the purchaser&#8217;s written
consent to the transaction prior to the sale. The broker-dealer also must
disclose the commissions payable to the broker-dealer, current bid and offer
quotations for the penny stock and, if the broker-dealer is the sole
market-maker, the broker-dealer must disclose this fact and the broker-dealer&#8217;s
presumed control over the market. Such information must be provided to the
customer orally or in writing before or with the written confirmation of trade
sent to the customer. Monthly statements must be sent disclosing recent price
information for the penny stock held in the account and information on the
limited market in penny stocks. The additional burdens imposed upon
broker-dealers by such requirements could discourage broker-dealers from
effecting transactions in Vertex&#8217;s common stock, which could severely limit the
market liquidity of such shares of common stock and the ability of such holders
to sell their shares.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-7-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">The
market price of Vertex&#8217;s common stock may be adversely affected by market
volatility.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
market price of Vertex&#8217;s common stock is likely to be volatile and could
fluctuate widely in response to many factors, including:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">actual
      or anticipated variations in Vertex&#8217;s operating
  results;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">developments
      with respect to patents or proprietary
rights;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">announcements
      of technological innovations by Vertex or its
  competitors;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">announcements
      of new products or new contracts by Vertex or its
    competitors;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">changes
      in financial estimates by securities analysts and whether Vertex&#8217;s
      earnings meet or exceed such
estimates;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">conditions
      and trends in the industries in which Vertex
  operates;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">changing
      environmental standards;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">new
      accounting standards;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">general
      economic, political and market conditions and other factors;
      and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">the
      occurrence of any of the other risks described in this
    report.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">RISKS
RELATING TO VERTEX&#8217;S BUSINESS</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex&#8217;s
contracts may not be renewed and its existing relationships may not
continue.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
contracts and relationships in the black oil business include feedstock
purchasing agreements with local waste oil collectors, an off-take arrangement
with two re-refineries, along with a few key relationships in the bunkering,
blending and No. 6 oil industry. The agreements with the local waste oil
collectors do not generally have a stated term and can therefore be terminated
by such collectors at will. Vertex&#8217;s agreement with the major re-refinery
expired on September&#160;30, 2008, and we ceased operating under the agreement
in May 2009. Similarly, Vertex had operated only one contract in connection with
its refining operations, which contract expired on November&#160;1, 2008 and has
continued on a month-to-month basis.&#160;&#160;We do not anticipate either of
the two contracts to be renewed at this time. Because Vertex&#8217;s operations are
extremely dependent on the black oil relationship with the major re-refinery and
the third-party refining contract, the expiration of the two contracts may have
a material adverse effect on Vertex&#8217;s operations and results of operations.
Additionally, if Vertex were to lose any of its current local waste oil
collectors, Vertex could be required to spend additional resources locating and
providing incentives for other waste oil collectors, which could cause Vertex&#8217;s
expenses to increase and/or cause it to curtail or abandon its business
plans.</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-8-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex
operates in competitive markets, and there can be no certainty that Vertex will
maintain its current customers or attract new customers or that its operating
margins will not be impacted by competition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
industries in which Vertex operates are highly competitive. Vertex competes with
numerous local and regional companies of varying sizes and financial resources
in its refining and feedstock consolidation operations, and expects to compete
with larger oil companies, with significantly greater resources than Vertex, in
its planned oil re-refining operations. Vertex expects competition to intensify
in the future. Furthermore, numerous well-established companies are focusing
significant resources on providing refining and re-refining services that will
compete with Vertex&#8217;s services. We cannot assure you that Vertex will be able to
effectively compete with these other companies or that competitive pressures,
including possible downward pressure on the prices Vertex charges for its
products and services, will not arise. In the event that Vertex cannot
effectively compete on a continuing basis, or competitive pressures arise, such
inability to compete or competitive pressures could have a material adverse
effect on Vertex&#8217;s business, results of operations and financial
condition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Disruptions
in the supply of feedstock could have an adverse effect on Vertex&#8217;s
business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
depends on the continuing availability of raw materials, including feedstock, to
remain in production. A serious disruption in supply of feedstock, or
significant increases in the prices of feedstock, could significantly reduce the
availability of raw materials at Vertex&#8217;s plant, increase production costs and
could have a material adverse effect on its business, results of operations and
financial condition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
example, Vertex has previously experienced difficulty in obtaining feedstock
from its suppliers who, because of the sharp downturn in the price of oil (used
and otherwise) have seen their margins decrease substantially, which in some
cases has made it uneconomical for such suppliers to purchase feedstock from
their suppliers and/or sell to Vertex at the rates set forth in their contracts.
Any similar decline in the price of oil and/or the economy in general could
create a decrease in the supply of feedstock, prevent Vertex from maintaining
its required levels of output and/or force Vertex to seek out additional
suppliers of feedstock, who may charge more than its current suppliers, and
therefore adversely affect its results of operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex
is subject to numerous environmental and other laws and regulations and, to the
extent Vertex is found to be in violation of any such laws and regulations,
Vertex&#8217;s business could be materially and adversely affected.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex is
subject to extensive federal, state, provincial and local laws and regulations
relating to the protection of the environment which, among other
things:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">regulate
      the collection, transportation, handling, processing and disposal of
      hazardous and non-hazardous wastes;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">impose
      liability on persons involved in generating, handling, processing,
      transporting or disposing hazardous
materials;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">impose
      joint and several liability for remediation and clean-up of environmental
      contamination; and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">require
      financial assurance that funds will be available for the closure and
      post-closure care of sites where hazardous wastes are stored, processed or
      disposed.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-9-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
breadth and complexity of all of these laws and regulations affecting Vertex
make consistent compliance extremely difficult and often result in increased
operating and compliance costs, including requiring the implementation of new
programs to promote compliance. Even with these programs, Vertex and other
companies in the industry are routinely faced with legal and administrative
proceedings which can result in civil and criminal penalties, interruption of
business operations, fines or other sanctions and require expenditures. Under
current law, Vertex may be held liable for damage caused by conditions that
existed before it acquired its assets and/or before it took control of its
leased properties or if it arranges for the transportation, disposal or
treatment of hazardous substances that cause environmental contamination. In the
future, Vertex may be subject to monetary fines, civil or criminal penalties,
remediation, clean-up or stop orders, injunctions, orders to cease or suspend
certain practices or denial of permits required to operate its facilities and
conduct its operations. The outcome of any proceeding and associated costs and
expenses could have a material adverse impact on Vertex&#8217;s operations and
financial condition.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Environmental
laws and regulations are subject to change and may become increasingly stringent
or relaxed. Interpretation or enforcement of existing laws and regulations, or
the adoption of new laws and regulations, may require Vertex to modify or
curtail its operations or replace or upgrade its facilities or equipment at
substantial costs which it may not be able to pass on to its customers. On the
other hand, if new laws and regulations are less stringent, then Vertex&#8217;s
customers or competitors may be able to compete with Vertex more effectively,
without reliance on its services, which could decrease the need for its services
and/or increase competition which could adversely affect its revenues and
profitability, if any.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex is
required to obtain and maintain permits, licenses and approvals to conduct its
operations in compliance with such laws and regulations. If Vertex is unable to
maintain its currently held permits, licenses and approvals, it may not be able
to continue certain of its operations. If it is unable to obtain any additional
permits, licenses and approvals which may be required as Vertex expands its
operations, it may be forced to curtail or abandon its current and/or future
planned business operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex
could be subject to involuntary shutdowns or be required to pay significant
monetary damages or remediation costs if it is found to be a responsible party
for the improper handling or the release of hazardous substances.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As a
company engaged in the sale, handling, transportation, storage, recycling and
disposal of materials that are or may be classified as hazardous by federal,
state, provincial or other regulatory agencies, Vertex faces risks of liability
for environmental contamination. The federal Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, or &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">CERCLA</font>&#8221; or Superfund,
and similar state laws impose strict liability for clean-up costs on current or
former owners and operators of facilities that release hazardous substances into
the environment, as well as on the businesses that generate those substances or
transport them. As a potentially responsible party, or &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">PRP,</font>&#8221; Vertex may be
liable under CERCLA for substantial investigation and cleanup costs even if it
operates its business properly and complies with applicable federal and state
laws and regulations. Liability under CERCLA may be joint and several, which
means that if it were found to be a business with responsibility for a
particular CERCLA site, Vertex could be required to pay the entire cost of the
investigation and cleanup, even though it was not the party responsible for the
release of the hazardous substance and even though other companies might also be
liable. Even if Vertex is able to identify who the other responsible parties
might be, it may not be able to compel them to contribute to the remediation
costs, or they might be insolvent or unable to contribute due to lack of
financial resources.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
facilities and the facilities of its clients and third-party contractors may
have generated, used, handled and/or disposed of hazardous substances and other
regulated wastes. Environmental liabilities could exist, including cleanup
obligations at these facilities or at off-site locations, which could result in
future expenditures that cannot be currently quantified and which could
materially reduce Vertex&#8217;s profits. In addition, new services or products
offered by Vertex could expose it to further environmental liabilities for which
it has no historical experience and cannot estimate its potential exposure to
liabilities.</font></div>
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      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex
is dependent on third parties for the disposal of its waste
streams.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
does not own any waste disposal sites. As a result, it is dependent on third
parties for the disposal of waste streams. To date, disposal vendors have met
its requirements, but we cannot assure you that they will continue to do so. If
for some reason Vertex&#8217;s current disposal vendors cannot perform up to
standards, Vertex may be required to replace them. Although Vertex believes
there are a number of potential replacement disposal vendors that could provide
such services, it may incur additional costs and delays in identifying and
qualifying such replacements. In addition, any mishandling of its waste streams
by disposal vendors could expose Vertex to liability. Any failure by disposal
vendors to properly collect, transport, handle or dispose of Vertex&#8217;s waste
streams could expose it to liability, damage its reputation and generally have a
material adverse effect on its business, financial condition or results of
operations.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Worsening
economic conditions and trends and downturns in the business cycles of the
industries Vertex serves and which provide services to Vertex would impact its
business and operating results.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
significant portion of Vertex&#8216;s customer base is comprised of companies in the
chemical manufacturing and hydrocarbon recovery industries. The overall levels
of demand for its products, refining operations, and future planned re-refined
oil products, are driven by fluctuations in levels of end-user demand, which
depend in large part on general macroeconomic conditions in the U.S., as well as
regional economic conditions. For example, many of Vertex&#8217;s principal consumers
are themselves heavily dependent on general economic conditions, including the
price of fuel and energy, availability of affordable credit and capital,
employment levels, interest rates, consumer confidence and housing demand. These
cyclical shifts in Vertex&#8217;s customers&#8217; businesses may result in fluctuations in
demand, volumes, pricing and operating margins for its services and
products.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
addition to its customers, the suppliers of Vertex&#8217;s feedstock may also be
affected by downturns in the economy and adverse changes in the price of
feedstock. For example, Vertex has recently experienced difficulty obtaining
feedstock from its suppliers who, because of the sharp downturn in the price of
oil (used and otherwise) have seen their margins decrease substantially, which
in some cases have made it uneconomical for such suppliers to purchase feedstock
from their suppliers and/or sell to Vertex at the rates set forth in their
contracts. Any similar decline in the price of oil and/or the economy in general
could create a decrease in the supply of feedstock, prevent Vertex from
maintaining its required levels of output and/or force Vertex to seek additional
suppliers of feedstock, who may charge more than its current suppliers, and
therefore adversely affect its results of operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex&#8217;s
operating margins and profitability may be negatively impacted by changes in
fuel and energy costs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
transports its refined oil, and plans in the future to transport re-refined oil,
with trucks and by rail. As a result, increases in shipping and transportation
costs caused by increases in oil, gasoline and diesel prices have a significant
impact on its operating expenses. The price and supply of oil and gas is
unpredictable and fluctuates based on events beyond Vertex&#8217;s control, including
geopolitical developments, supply and demand for oil and natural gas, actions by
OPEC and other oil and gas producers, war and unrest in oil producing countries,
regional production patterns and environmental concerns. A significant increase
in transportation or fuel costs could lower Vertex&#8217;s operating margins and
negatively impact its profitability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
the price at which Vertex sells its refined oil and re-refined oil is affected
by changes in certain oil indexes. If the relevant oil index rises, Vertex
anticipates being able to increase the prices for its refined and re-refined
oil. If the relevant oil index declines, Vertex anticipates having to reduce
prices for its refined and re-refined oil. However, the cost to collect used oil
and refinery feedstock, including the amounts that must be paid to obtain used
oil and feedstock, generally also increases or decreases when the relevant index
increases or decreases. Even though the prices that can be charged for Vertex&#8217;s
refined (and in the future, re-refined) products and the costs to collect,
refine, and re-refine the feedstock generally increase and decrease together,
Vertex cannot assure you that when the costs to collect, refine and re-refine
used oil and petrochemical products increase, Vertex will be able to increase
the prices it charges for its refined and re-refined products to cover such
increased costs, or that the costs to collect, refine and re-refine used oil and
petrochemical products will decline when the prices Vertex can charge for its
products declines. If the prices Vertex charges for its finished products and
the costs to collect, refine and re-refine products do not move together or in
similar magnitudes, Vertex&#8217;s profitability may be materially and negatively
impacted.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-11-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recently,
as a result of a number of factors including Hurricane Ike, which caused damage
to Vertex&#8217;s infrastructure and prevented Vertex from selling its product for a
significant period of time, and the simultaneous sharp decline in the price of
oil, Vertex was unable to sell off its inventory. As a result, during the fourth
quarter of 2008 and the first quarter of 2009 Vertex was storing a substantial
amount of inventory which it had purchased while the price of oil was relatively
high and which was later valued at significantly less than what it was
originally purchased for. Vertex was forced to sell the inventory at a material
loss.&#160;&#160;There can be no assurance that similar problems will not affect
Vertex moving forward. If such issues were to affect Vertex, its inventory,
ability to meet its ongoing delivery requirements and results of operations
could be adversely affected.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Expansion
of Vertex&#8217;s business may result in unanticipated adverse
consequences.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In the
future, Vertex may seek to grow its business by investing in new or existing
facilities or technologies, making acquisitions or entering into partnerships
and joint ventures. Acquisitions, partnerships, joint ventures or investments
may require significant managerial attention, which may divert management from
its other activities and may impair the operation of Vertex&#8217;s existing
businesses. Any future acquisitions of businesses or facilities could entail a
number of additional risks, including:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">the
      failure to successfully integrate the acquired businesses or facilities or
      new technology into Vertex&#8217;s
operations;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">the
      inability to maintain key pre-acquisition business
      relationships;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">loss
      of key personnel of the acquired business or
  facility;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">exposure
      to unanticipated liabilities; and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">the
      failure to realize efficiencies, synergies and cost
    savings.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As a
result of these and other factors, including the general economic risk
associated with the industries in which it operates, Vertex may not be able to
realize the expected benefits from any future acquisitions, partnerships, joint
ventures or other investments.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex
depends heavily on the services of its Chief Executive Officer and Chairman,
Benjamin P. Cowart.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
success depends heavily upon the personal efforts and abilities of Benjamin P.
Cowart, its Chief Executive Officer and Chairman, who is employed by Vertex
under a five-year employment contract. Vertex does not currently have any &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">key man</font>&#8221; life
insurance policy in place for Mr.&#160;Cowart. Mr.&#160;Cowart has numerous
business relationships with entities separate from Vertex, which could take a
significant portion of his time and/or could cause conflicts of interest with
Vertex&#8217;s operations. The loss of Mr.&#160;Cowart or other key employees could
have a material adverse effect on Vertex&#8217;s business, results of operations or
financial condition. In addition, the absence of Mr.&#160;Cowart may force
Vertex to seek a replacement who may have less experience or who may not
understand Vertex&#8217;s business as well, or Vertex may not be able to find a
suitable replacement.</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Unanticipated
problems or delays in building Vertex&#8217;s facilities to the proper specifications
may harm its business and viability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
future growth will depend on its ability to timely and economically complete and
operate its planned re-refining facility and operate its existing refining
operations. If Vertex&#8217;s operations are disrupted or its economic integrity is
threatened for unexpected reasons, its business may experience a substantial
setback. Moreover, the occurrence of significant unforeseen conditions or events
in connection with the construction of Vertex&#8217;s planned facility may require it
to reexamine its business model. Any change to Vertex&#8217;s business model or
management&#8217;s evaluation of the viability of its planned services may adversely
affect its business. Construction costs for Vertex&#8217;s facility may also increase
to a level that would make a new facility too expensive to complete or
unprofitable to operate. Contractors, engineering firms, construction firms and
equipment suppliers also receive requests and orders from other companies and,
therefore, Vertex may not be able to secure their services or products on a
timely basis or on acceptable financial terms. Vertex may suffer significant
delays or cost overruns as a result of a variety of factors, such as increases
in the prices of raw materials, shortages of workers or materials,
transportation constraints, adverse weather, equipment failures, fires, damage
to or destruction of property and equipment, environmental damage, unforeseen
difficulties or labor issues, any of which could prevent Vertex from commencing
operations as expected at its planned re-refining facility.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Strategic
relationships on which Vertex relies are subject to change.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
ability to identify and enter into commercial arrangements with feedstock
suppliers and refined and re-refined oil clients depends on developing and
maintaining close working relationships with industry participants. Vertex&#8217;s
success in this area also depends on its ability to select and evaluate suitable
projects as well as to consummate transactions in a highly competitive
environment. These factors are subject to change and may impair Vertex&#8217;s ability
to grow.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Disruptions
to infrastructure could materially and adversely affect Vertex&#8217;s
business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
business depends on the continuing availability of rail, road, port, storage and
distribution infrastructure. Any disruptions in this infrastructure network,
whether caused by labor difficulties, earthquakes, storms, other natural
disasters, human error or malfeasance or other reasons, could have a material
adverse effect on Vertex&#8217;s business. Vertex relies on third parties to maintain
the rail lines from their plants to the national rail network, and any failure
by these third parties to maintain the lines could impede the delivery of
products, impose additional costs and could have a material adverse effect on
Vertex&#8217;s business, results of operations and financial condition. For example,
recent damage to the Cedar Marine Terminal as a result of Hurricane Ike (which
caused the terminal to temporarily be out of operation), resulted in increased
costs associated with the shipping of feedstock through third party contractors,
thereby raising the overall cost of the feedstock and lowering Vertex&#8217;s margins.
Additional hurricanes or natural disasters in the future could cause similar
damage to Vertex&#8217;s infrastructure, prevent Vertex from generating revenues while
such infrastructure is undergoing repair (if repairable) and/or cause Vertex&#8217;s
margins and therefore its results of operations to be adversely
affected.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex&#8217;s
commercial success will depend in part on its ability to obtain and maintain
protection of its intellectual property.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
success will depend in part on its ability to maintain or obtain and enforce any
future patent rights and/or other intellectual property protection for its
technologies and to preserve its trade secrets, and to operate without
infringing upon the proprietary rights of third parties. Vertex has not obtained
patents (although patent applications for the Company&#8217;s licensed Thermo-Chemical
Extraction Process are pending) in the United States or internationally for its
technology to date. We cannot assure you that such patents will be granted or
that the scope of any claims granted in any patent will provide Vertex with
proprietary protection or a competitive advantage. We cannot assure you that if
granted, such patents will be valid or will afford Vertex with protection
against competitors with similar technology. The failure to obtain or maintain
patent or other intellectual property protection on the technologies underlying
Vertex&#8217;s technologies may have a material adverse effect on its competitive
position and business prospects. It is also possible that Vertex&#8217;s technologies
may infringe on patents or other intellectual property rights owned by others.
Vertex may have to alter its products or processes, pay licensing fees, defend
an infringement action or challenge the validity of the patents in court, or
cease activities altogether because of patent rights of third parties, thereby
causing additional unexpected costs and delays to it. We cannot assure you that
a license will be available to Vertex, if at all, upon terms and conditions
acceptable to it or that it will prevail in any intellectual property
litigation. Intellectual property litigation is costly and time consuming, and
we cannot assure you that Vertex will have sufficient resources to pursue such
litigation. If Vertex does not obtain a license under such intellectual property
rights, is found liable for infringement or is not able to have such patents
declared invalid, Vertex may be liable for significant money damages and may
encounter significant delays in bringing products to market.</font><br></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Competition
may impair Vertex&#8217;s success.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
technologies may be developed by others that could compete with Vertex&#8217;s
refining and re-refining technologies. In addition, Vertex faces competition
from other producers of oil substitutes and related products. Such competition
is expected to be intense and could significantly drive down the price for
Vertex&#8217;s products. Competition will likely increase as prices of energy in the
commodities market, including refined and re-refined oil, rise. Additionally,
new companies are constantly entering the market, thus increasing the
competition even further. These companies may have greater success in the
recruitment and retention of qualified employees, as well as in conducting their
own refining and re-refining operations, and may have greater access to
feedstock, market presence, economies of scale, financial resources and
engineering, technical and marketing capabilities, which may give them a
competitive advantage. In addition, actual or potential competitors may be
strengthened through the acquisition of additional assets and interests. If
Vertex is unable to compete effectively or adequately respond to competitive
pressures, this may materially adversely affect its results of operation and
financial condition and could also have a negative impact on its ability to
obtain additional capital from investors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Potential
competition from Vertex&#8217;s existing employees and affiliated entities could
negatively impact Vertex&#8217;s profitability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
Mr.&#160;Cowart and other employees of Vertex will be prohibited from competing
with Vertex while they are employed with Vertex and for six months thereafter,
none of such individuals will be prohibited from competing with Vertex after
such six month period ends. Additionally, none of Mr.&#160;Cowart&#8217;s affiliated
companies, including Vertex LP, are prohibited from competing with Vertex.
Accordingly, any of these individuals or entities could be in a position to use
industry experience gained while working with Vertex to compete with Vertex.
Such competition could increase Vertex&#8217;s costs to obtain feedstock, and increase
its costs for contracting use of operating assets and services such as third
party refining capacity, trucking services or terminal access. Furthermore, such
competition could distract or confuse customers, reduce the value of Vertex&#8217;s
intellectual property and trade secrets, or result in a reduction in the prices
Vertex is able to obtain for its finished products. Any of the foregoing could
reduce Vertex&#8217;s future revenues, earnings or growth prospects.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Competition
due to advances in renewable fuels may lessen the demand for Vertex&#8217;s products
and negatively impact its profitability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alternatives
to petroleum-based products and production methods are continually under
development. For example, a number of automotive, industrial and power
generation manufacturers are developing alternative clean power systems using
fuel cells or clean-burning gaseous fuels that may address increasing worldwide
energy costs, the long-term availability of petroleum reserves and environmental
concerns, which if successful could lower the demand for Vertex&#8217;s services. If
these non-petroleum based products and oil alternatives continue to expand and
gain broad acceptance such that the overall demand for Vertex&#8217;s products is
reduced, it may not be able to compete effectively in the
marketplace.</font></div>
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      </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Vertex
will rely on new technology to conduct its business, including its licensed
Thermo-Chemical Extraction Process, and its technology could become ineffective
or obsolete.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
will be required to continually enhance and update its technology to maintain
its efficiency and to avoid obsolescence. Additionally, Vertex initially plans
to rely on the License from CMT in connection with a <font style="DISPLAY: inline; TEXT-DECORATION: underline">Thermal/chemical extraction
technology</font> (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Process</font>&#8221;).&#160;&#160;The
Process is currently commercially unproven and may never work in a profitable
manner, if at all.&#160;&#160;Additionally, the costs moving forward of
enhancing and updating its technology may be substantial and may be higher than
the costs that Vertex anticipates for technology maintenance and development. If
Vertex is unable to maintain the efficiency of its technology, its ability to
manage its business and to compete may be impaired. Even if Vertex is able to
maintain technical effectiveness, its technology may not be the most efficient
means of reaching its objectives, in which case it may incur higher operating
costs than it would if its technology was more effective. The impact of
technical shortcomings, including but not limited to the failure of the Process,
could have a material adverse effect on Vertex&#8217;s prospects, business, financial
condition, and results of operations.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
business is subject to local, legal, political, and economic factors which are
beyond its control.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
believes that the current political environment for construction of its planned
re-refining facility is sufficiently supportive to enable it to plan and
implement its operations. However, there are risks that conditions will change
in an adverse manner. These risks include, but are not limited to, environmental
issues, land use, air emissions, water use, zoning, workplace safety,
restrictions imposed on the re-refining industry such as restrictions on
production, substantial changes in product quality standards, restrictions on
feedstock supply, price controls and export controls. Any changes in financial
incentives, investment regulations, policies or a shift in political attitudes
are beyond the control of Vertex and may adversely affect its business and
future financial results.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Environmental
risks and regulations may adversely affect Vertex&#8217;s business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
phases of designing, constructing and operating Vertex&#8217;s refining and planned
re-refining plant present environmental risks and hazards. Vertex is subject to
environmental regulation implemented or imposed by a variety of federal, state
and municipal laws and regulations as well as international conventions. Among
other things, environmental legislation provides for restrictions and
prohibitions on spills and discharges, as well as emissions of various
substances produced in association with Vertex&#8217;s operations. Legislation also
requires that facility sites be operated, maintained, abandoned and reclaimed in
such a way that would satisfy applicable regulatory authorities. Compliance with
such legislation can require significant expenditures and a breach could result
in the imposition of fines and penalties, some of which could be material.
Environmental legislation is evolving in a manner Vertex expects may result in
stricter standards and enforcement, larger fines and liability, as well as
potentially increased capital expenditures and operating costs. The presence or
discharge of pollutants in or into the air, soil or water may give rise to
liabilities to governments and third parties and may require Vertex to incur
costs to remedy such presence or discharge. If Vertex is unable to remediate
such conditions economically or obtain reimbursement or indemnification from
third parties, its financial condition and results of operations could be
adversely affected. Vertex cannot assure you that the application of
environmental laws to its business will not cause it to limit its production, to
significantly increase the costs of its operations and activities, to reduce the
market for its products or to otherwise adversely affect its financial
condition, results of operations or prospects.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Penalties
Vertex may incur could impair its business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Failure
to comply with government regulations could subject Vertex to civil and criminal
penalties and may negatively affect the value of its assets or its ability to
conduct its business. Vertex may also be required to take corrective actions,
including, but not limited to, installing additional equipment, which could
require it to make substantial capital expenditures. Vertex could also be
required to indemnify its employees in connection with any expenses or
liabilities that they may incur individually in connection with regulatory
action against Vertex. These could result in a material adverse effect on
Vertex&#8217;s prospects, business, financial condition and its results of
operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">If
Vertex cannot maintain adequate insurance coverage, it will be unable to
continue certain operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
business exposes it to various risks, including claims for causing damage to
property and injuries to persons that may involve allegations of negligence or
professional errors or omissions in the performance of its services. Such claims
could be substantial. Vertex believes that its insurance coverage is presently
adequate and similar to, or greater than, the coverage maintained by other
similarly situated companies in the industry. If Vertex is unable to obtain
adequate or required insurance coverage in the future, or if such insurance is
not available at affordable rates, Vertex could be in violation of its permit
conditions and other requirements of the environmental laws, rules and
regulations under which it operates. Such violations could render Vertex unable
to continue certain of its operations. These events could result in an inability
to operate certain assets and significantly impair its financial
condition.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Increases
in energy costs will affect Vertex&#8217;s operating results and financial
condition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
production costs will be dependent on the costs of the energy sources used to
run its facilities and to procure feedstock. These costs are subject to
fluctuations and variations, and Vertex may not be able to predict or control
these costs. If these costs exceed Vertex&#8217;s expectations, this may adversely
affect its results of operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
insurance policies do not cover all losses, costs or liabilities that it may
experience.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
maintains insurance coverage, but these policies do not cover all of its
potential losses, costs or liabilities. Vertex could suffer losses for
uninsurable or uninsured risks, or in amounts in excess of its existing
insurance coverage, which would significantly affect its financial performance.
Vertex&#8217;s insurance policies also have deductibles and self-retention limits that
could expose it to significant financial expense. Vertex&#8217;s ability to obtain and
maintain adequate insurance may be affected by conditions in the insurance
market over which it has no control. The occurrence of an event that is not
fully covered by insurance could have a material adverse effect on Vertex&#8217;s
business, financial condition and results of operations. In addition, Vertex&#8217;s
business requires that it maintain various types of insurance. If such insurance
is not available or not available on economically acceptable terms, Vertex&#8217;s
business would be materially and adversely affected.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="103">SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;This
prospectus includes and incorporates forward-looking statements within the
meaning of Section&#160;27A of the Securities Act of 1933, as amended (the
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Securities
Act</font>&#8221;), and Section&#160;21E of the Securities Exchange Act of 1934, as
amended (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Exchange
Act</font>&#8221;). All statements, other than statements of historical facts,
included or incorporated in this prospectus regarding our strategy, future
operations, financial position, future revenues, projected costs, prospects,
plans and objectives of management are forward-looking statements. The words
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">anticipates,</font>&#8221;
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">believes,</font>&#8221;
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">estimates,</font>&#8221;
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">expects,</font>&#8221;
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">intends,</font>&#8221;
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">may,</font>&#8221; &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">plans,</font>&#8221; &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">projects,</font>&#8221; &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">would</font>&#8221; and similar
expressions are intended to identify forward-looking statements, although not
all forward-looking statements contain these identifying words. We cannot
guarantee that we actually will achieve the plans, intentions or expectations
disclosed in our forward-looking statements and you should not place undue
reliance on our forward-looking statements. Actual results or events could
differ materially from the plans, intentions and expectations disclosed in the
forward-looking statements we make. We have included important factors in the
cautionary statements included or incorporated in this prospectus, particularly
under the heading &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Risk Factors</font>&#8221;, that
we believe could cause actual results or events to differ materially from the
forward-looking statements that we make. Our forward-looking statements do not
reflect the potential impact of any future acquisitions, mergers, dispositions,
joint ventures or investments we may make. Any such forward-looking statements
represent management&#8217;s views as of the date of the document in which such
forward-looking statement is contained. While we may elect to update such
forward-looking statements at some point in the future, we disclaim any
obligation to do so, even if subsequent events cause our views to
change.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="104"><font style="DISPLAY: inline; FONT-WEIGHT: bold">USE OF
PROCEEDS</font></a></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
shares of common stock offered by this prospectus are being registered for the
account of the selling shareholders identified in this prospectus. See &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Selling
Shareholders.</font>&#8221; All net proceeds from the sale of the shares of common
stock will go to the shareholders that offer and sell their shares. We will not
receive any part of the proceeds from such sales of common stock. We may
however, receive the exercise price of the options at the time of their
exercise, assuming such selling shareholders do not make a cashless exercise of
their options. Such proceeds, if any, will be contributed to working capital and
will be used for general corporate purposes.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">SELLING
SHAREHOLDERS</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
shares of common stock to which this prospectus relates may be reoffered and
sold from time to time by selling shareholders who may be deemed our &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">affiliates</font>&#8221; (as
defined in Rule 501(b) of Regulation&#160;D of the Securities Act). The selling
shareholders will acquire or have acquired the shares of common stock upon
exercise of options granted or to be granted to them pursuant to our 2008 Stock
Incentive Plan and our 2009 Stock Incentive Plan (collectively the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Plans</font>&#8221;), and in
connection with other Stock Option Agreements pursuant to which we granted stock
options to purchase 400,000 shares of our common stock outside of the Plans. The
table below identifies each selling shareholder and his or her relationship to
us. The table also sets forth, as of September 15, 2009 for each selling
shareholder: (i)&#160;the number of shares of common stock beneficially owned
prior to this offering, (ii)&#160;the number of shares of common stock that may
be offered and sold through this prospectus, and (iii)&#160;the number of shares
and the percentage of the total voting represented by such shares to be owned by
each such selling shareholder assuming the sale of all of the registered shares.
There is no assurance that any of the selling shareholders will sell any or all
of their shares of common stock. The inclusion in the table of the individuals
named therein shall not be deemed to be an admission that any such individuals
are one of our affiliates. Except as otherwise noted, all shares of common stock
are beneficially owned and the sole investment and voting power is held by the
person named. Information regarding the selling shareholders, including the
number of shares offered for sale, may change from time to time, and any changed
information will be set forth in a prospectus supplement to the extent required.
Furthermore, certain unnamed non-affiliates, each of whom holds less than the
lesser of 1,000 shares or one percent of the shares issuable under the Plan, may
use this prospectus for reoffers and resales of shares up to that
amount.&#160;&#160;The inclusion of shares in the table below does not
constitute a commitment to sell any of the shares.</font><br></div>
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              <td valign="bottom" width="2%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="3%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td colspan="4" valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Beneficial
      Ownership</font> <font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">After
      this Offering (1)(2)</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="28%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Name</font></div>
              </td>
              <td valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Position</font></div>
              </td>
              <td valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Total
      Beneficial Ownership Prior to this Offering</font></div>
              </td>
              <td valign="bottom" width="4%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Shares
      that may be Offered and Sold Hereby (3)</font></div>
              </td>
              <td valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Number
      of Shares</font></div>
              </td>
              <td valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Percent
      of Outstanding Voting Shares (1)</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="28%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Allison
      Szempruch</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Employee</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Benjamin
      P. Cowart</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Executive Officer, President and Chairman</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">7,292,161</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(a)</font></div>
              </td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">80,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">7,292,161</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">56.1%</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Christopher
      Carlson</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Secretary</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">299,522</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(b)</font></div>
              </td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">165,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">264,522</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2.0%</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Christopher
      Stratton</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Financial Officer</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">100,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Dan
      Borgen</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">5,000</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(c)</font></div>
              </td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">100,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">David
      Braykovich</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Employee</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6,250</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">25,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">David
      Loev</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Consultant</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,500</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">David
      Phillips</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">5,000</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(d)</font></div>
              </td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">100,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Dean
      Allcorn</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Consultant</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,875</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">7,500</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Greg
      Wallace</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Employee</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">149,574</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">224,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">118,574</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Ingram
      Lee</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">213,331</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(e)</font></div>
              </td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">100,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">208,331</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1.6%</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">John
      Pimentel</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">458,279</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(f)</font></div>
              </td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">280,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">258,279</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2.0%</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">John
      Schulz</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Employee</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">5,000</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">40,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">John
      Strickland</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Employee</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">15,000</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">85,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">John
      Worster</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Consultant</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">40,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Kathy
      Scott</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Employee</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">25,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Matthew
      Lieb</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Operating Officer</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">97,814</font></div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(g)</font></div>
              </td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">250,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">40,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Ron
      Gemeinhardt</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Consultant</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,500</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Sally
      Edwards</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Employee</font></div>
              </td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10,000</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="28%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Stella
      Almaguer</font></div>
              </td>
              <td valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Employee</font></div>
              </td>
              <td valign="bottom" width="3%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="4%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10,000</font></div>
              </td>
              <td valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div>
              </td>
              <td valign="bottom" width="2%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">*</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="28%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="right" valign="bottom" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Total
      Shares</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,671,500</font></div>
              </td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="18%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="14%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
        </table>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-18-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">* Denotes
less than 1%.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1) Based
on 8,251,616 shares of Vertex common stock issued and outstanding and 4,755,566
shares of Series A Preferred Stock issued and outstanding (which each vote one
voting share on shareholder matters) totaling 13,007,172 voting shares.
Additionally, shares of common stock subject to options, warrants or other
convertible securities that are currently exercisable or convertible, or
exercisable or convertible within 60 days of September 15, 2009, are deemed to
be outstanding and to be beneficially owned by the person or group holding such
options, warrants or other convertible securities for the purpose of computing
the percentage ownership of such person or group, but are not treated as
outstanding for the purpose of computing the percentage ownership of any other
person or group.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)
Assumes the sale of all shares of common stock registered pursuant to this
prospectus, although selling shareholders are under no obligation known to us to
sell any shares of common stock at this time.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)
Represents shares of common stock issuable in connection with the exercise of
outstanding stock options, a portion of which may have not vested to date and/or
may not be exercisable and as such have not been included in the column entitled
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Total Beneficial
Ownership Prior to this Offering</font>&#8221; as such securities are not exercisable
within 60 days of September 15, 2009.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
Includes 55,311 shares held by VTX, Inc., which Mr. Cowart serves as President
of and is deemed to beneficially own ("<font style="DISPLAY: inline; TEXT-DECORATION: underline">VTX</font>").&#160;&#160;Also
includes warrants to purchase an aggregate of 7,789 shares of the Company's
common stock held by VTX, at various exercise prices from $1.55 to $37.00 per
share, and with various expiration dates from between April 28, 2010 and
February 26, 2018, granted to VTX, as a Partner of Vertex LP, for consideration
in connection with the Merger (as described above)(the "<font style="DISPLAY: inline; TEXT-DECORATION: underline">Make-Whole
Warrants</font>").&#160;&#160;Also includes Make-Whole Warrants to purchase an
aggregate of 658,690 shares of our common stock held personally by Mr.
Cowart.&#160;&#160;Does not include the stock options to purchase 80,000 shares
of the Company&#8217;s common stock at $0.45 per share, shown in the table entitled
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Shares that may be
Offered and Sold Hereby,</font>&#8221; as such stock options have not vested to Mr.
Cowart and are not exercisable within 60 days of September 15,
2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
Includes Make-Whole Warrants to purchase 41,278 shares of our common stock and
options to purchase 35,000 shares of the Company's common stock at an exercise
price of $1.20 per share.&#160;&#160;Does not include options to purchase
105,000 shares of the Company's common stock at an exercise price of $1.20 per
share, or stock options to purchase 25,000 shares of the Company&#8217;s common stock
at $0.45 per share, which options are however shown in the table entitled &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Shares that may be Offered
and Sold Hereby,</font>&#8221; as such stock options have not vested to Mr. Carlson
and are not exercisable within 60 days of September 15, 2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
Includes options to purchase 5,000 shares of the Company's common stock at an
exercise price of $1.20 per share.&#160;&#160;Does not include options to
purchase 15,000 shares of the Company's common stock at an exercise price of
$1.20 per share, which options have not vested to Mr. Borgen to date, or stock
options to purchase 80,000 shares of the Company&#8217;s common stock at $0.45 per
share, which options are however shown in the table entitled &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Shares that may be Offered
and Sold Hereby,</font>&#8221; as such stock options have not vested to Mr. Borgen and
are not exercisable within 60 days of September 15, 2009.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
&#160; &#160; &#160; &#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)
Includes options to purchase 5,000 shares of the Company's common stock at an
exercise price of $1.20 per share.&#160;&#160;Does not include options to
purchase 15,000 shares of the Company's common stock at an exercise price of
$1.20 per share, which options have not vested to Mr. Phillips to date, or stock
options to purchase 80,000 shares of the Company&#8217;s common stock at $0.45 per
share, which options are however shown in the table entitled &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Shares that may be Offered
and Sold Hereby,</font>&#8221; as such stock options have not vested to Mr. Phillips
and are not exercisable within 60 days of September 15, 2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-19-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)
Includes 182,622 shares owned by PTI, Inc., which are beneficially owned by Mr.
Lee ("<font style="DISPLAY: inline; TEXT-DECORATION: underline">PTI</font>").&#160;&#160;Also
includes Make-Whole Warrants to purchase 25,709 shares of our common stock owned
by PTI, and options to purchase 5,000 shares of the Company's common stock at an
exercise price of $1.20 per share.&#160;&#160;Does not include options to
purchase 15,000 shares of the Company's common stock at an exercise price of
$1.20 per share, which options have not vested to Mr. Lee to date, or stock
options to purchase 80,000 shares of the Company&#8217;s common stock at $0.45 per
share, which options are however shown in the table entitled &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Shares that may be Offered
and Sold Hereby,</font>&#8221; as such stock options have not vested to Mr. Lee and
are not exercisable within 60 days of September 15, 2009.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
&#160; &#160; &#160; &#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)
Includes 35,000 shares held by Mr. Pimentel's wife, 3,030 shares of the
Company's Series A Preferred Stock, warrants to acquire 250 shares of our common
stock at an exercise price of $27.50 per share, and options to acquire 200,000
shares of common stock at an exercise price of $0.50 per share.&#160;&#160;Does
not include the stock options to purchase 80,000 shares of the Company&#8217;s common
stock at $0.45 per share, shown in the table entitled &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Shares that may be Offered
and Sold Hereby,</font>&#8221; as such stock options have not vested to Mr. Pimentel
and are not exercisable within 60 days of September 15, 2009.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)
Includes options to purchase 40,000 shares of our common stock at an exercise
price of $14.20 per share and options to purchase 35,938 shares of our common
stock at an exercise price of $0.50 per share.&#160; Does not include options to
purchase 164,062 shares of our common stock, or stock options to purchase 50,000
shares of the Company&#8217;s common stock at $0.45 per share, which options are
however shown in the table entitled &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Shares that may be Offered
and Sold Hereby,</font>&#8221; as such stock options have not vested to Mr. Lieb and
are not exercisable within 60 days of September 15, 2009.&#160; &#160; &#160;
&#160; &#160;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-20-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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      </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="106">PLAN OF DISTRIBUTION</a></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
shares covered by this prospectus may be offered and sold from time to time by
the selling stockholders. The term &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">selling stockholders</font>&#8221;
includes donees, pledgees, transferees or other successors-in-interest selling
shares received after the date of this prospectus from a selling stockholder as
a gift, pledge, partnership distribution or other non-sale related transfer. The
selling stockholders will act independently of us in making decisions with
respect to the timing, manner and size of each sale. Such sales may be made on
one or more exchanges or in the over-the-counter market or otherwise, at prices
and under terms then prevailing or at prices related to the then current market
price or in negotiated transactions. The selling stockholders may sell their
shares by one or more of, or a combination of, the following
methods:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
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      </font></td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">purchases
      by a broker-dealer as principal and resale by such broker-dealer for its
      own account pursuant to this prospectus;</font></div>
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          </tr>
          <tr>
            <td align="left" valign="middle" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            <td valign="middle" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            <td valign="middle" width="72%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="72%">
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      brokerage transactions and transactions in which the broker solicits
      purchasers;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="middle" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="72%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="2%">
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            </td>
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">block
      trades in which the broker-dealer so engaged will attempt to sell the
      shares as agent but may position and resell a portion of the block as
      principal to facilitate the transaction;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="middle" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="72%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">an
      over-the-counter distribution in accordance with the rules of the
      Over-The-Counter Bulletin Board (or such market or exchange on which the
      Company&#8217;s securities then trade) ; and</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="middle" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="72%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">in
      privately negotiated transactions.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="middle" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="middle" width="72%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
In addition, any shares that qualify for sale pursuant to Rule&#160;144 may be
sold under Rule&#160;144 rather than pursuant to this prospectus.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
the extent required, this prospectus may be amended or supplemented from time to
time to describe a specific plan of distribution. In connection with
distributions of the shares or otherwise, the selling stockholders may enter
into hedging transactions with broker-dealers or other financial institutions.
In connection with such transactions, broker-dealers or other financial
institutions may engage in short sales of the common stock in the course of
hedging the positions they assume with selling stockholders.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
In effecting sales, broker-dealers or agents engaged by the selling stockholders
may arrange for other broker-dealers to participate. Broker-dealers or agents
may receive commissions, discounts or concessions from the selling stockholders
in amounts to be negotiated immediately prior to the sale.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
In offering the shares covered by this prospectus, the selling stockholders and
any broker-dealers who execute sales for the selling stockholders may be deemed
to be &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">underwriters</font>&#8221; within
the meaning of the Securities Act in connection with such sales. Any profits
realized by the selling stockholders and the compensation of any broker-dealer
may be deemed to be underwriting discounts and commissions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
order to comply with the securities laws of certain states, if applicable, the
shares must be sold in such jurisdictions only through registered or licensed
brokers or dealers. In addition, in certain states the shares may not be sold
unless they have been registered or qualified for sale in the applicable state
or an exemption from the registration or qualification requirement is available
and is complied with.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
We have advised the selling stockholders that the anti-manipulation rules of
Regulation&#160;M under the Exchange Act may apply to sales of shares in the
market and to the activities of the selling stockholders and their affiliates.
In addition, we will make copies of this prospectus available to the selling
stockholders for the purpose of satisfying the prospectus delivery requirements
of the Securities Act. The selling stockholders may indemnify any broker-dealer
that participates in transactions involving the sale of the shares against
certain liabilities, including liabilities arising under the Securities
Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;
At the time a particular offer of shares is made, if required, a prospectus
supplement will be distributed that will set forth the number of shares being
offered and the terms of the offering, including the name of any underwriter,
dealer or agent, the purchase price paid by any underwriter, any discount,
commission and other item constituting compensation, any discount, commission or
concession allowed or reallowed or paid to any dealer, and the proposed selling
price to the public.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-21-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DESCRIPTION
OF SECURITIES</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
Stock</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The total
number of authorized shares of the Company&#8217;s common stock is 750,000,000 shares,
$0.001 par value per share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
share of Vertex common stock is entitled to equal dividends and distributions
per share with respect to the common stock when, as and if declared by Vertex&#8217;s
board of directors. No holder of any shares of Vertex common stock has a
preemptive right to subscribe for any Vertex security, nor are any shares of
Vertex common stock subject to redemption or convertible into other securities.
Upon liquidation, dissolution or winding-up of Vertex, and after payment of
creditors and preferred shareholders of Vertex, if any, the assets of Vertex
will be divided pro rata on a share-for-share basis among the holders of Vertex
common stock. Each share of Vertex common stock is entitled to one vote, except
with respect to the election of directors. Shares of Vertex common stock do not
possess any rights in respect of cumulative voting.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Preferred
Stock</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The total
number of &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">blank
check</font>&#8221; authorized shares of Vertex preferred stock is 50,000,000 shares,
$0.001 par value per share. The total number of authorized shares of Vertex&#8217;s
Series&#160;A Convertible Preferred Stock (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Vertex Series A
Preferred</font>&#8221;) is 5,000,000.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
Series A Preferred</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
of outstanding shares of Vertex Series&#160;A Preferred are entitled to receive
dividends, when, as, and if declared by Vertex&#8217;s board of directors. No
dividends or similar distributions may be made on shares of capital stock or
securities junior to the Vertex Series&#160;A Preferred until dividends in the
same amount per share on the Vertex Series&#160;A preferred have been declared
and paid. In connection with a liquidation, winding-up, dissolution or sale of
Vertex, each share of Vertex Series&#160;A Preferred is entitled to receive
$1.49 prior to similar liquidation payments due on shares of Vertex common stock
or any other class of securities junior to the Vertex Series&#160;A Preferred.
Shares of Vertex Series&#160;A Preferred are not entitled to participate with
the holders of Vertex common stock with respect to the distribution of any
remaining assets of Vertex.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
share of Vertex Series&#160;A Preferred is entitled to that number of votes
equal to the number of whole shares of Vertex common stock into which it is
convertible. Generally, holders of Vertex common stock and Vertex Series&#160;A
Preferred vote together as a single class.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares of
Vertex Series&#160;A Preferred automatically convert into shares of Vertex
common stock on the earliest to occur of the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
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      affirmative vote or written consent of the holders of a majority of the
      then-outstanding shares of Vertex Series&#160;A
  Preferred;</font></div>
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          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
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          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
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      the closing market price of Vertex common stock averages at least $15.00
      per share over a period of 20 consecutive trading days and the daily
      trading volume averages at least 7,500 shares over such
      period;</font></div>
            </td>
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    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
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          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
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      Vertex consummates an underwritten public offering of its securities at a
      price per share not less than $10.00 and for a total gross offering amount
      of at least $10&#160;million; or</font></div>
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
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          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">If
      a sale of Vertex occurs resulting in proceeds to the holders of Vertex
      Series&#160;A Preferred of a per share amount of at least
      $10.00.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Holders
      of Vertex Series&#160;A Preferred may not voluntarily convert their shares
      into Vertex common stock for at least one year following the issuance of
      the Vertex Series&#160;A Preferred. Thereafter, holders may convert their
      shares of Vertex Series&#160;A Preferred subject to the following
      conditions:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-22-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div>
    <div>
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          <tr>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="4%">
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            </td>
            <td valign="top" width="92%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">At
      any time following the one-year anniversary of the issuance of Vertex
      Series&#160;A Preferred, holders may convert only up to that number of
      shares such that, upon conversion, the aggregate beneficial ownership of
      Vertex common stock of any such holder does not exceed 4.99% of Vertex&#8217;s
      common stock then outstanding; and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="92%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Prior
      to the three-year anniversary of the issuance of Vertex Series&#160;A
      Preferred, no holder may, in any given three-month period, convert more
      than that number of shares of Vertex Series&#160;A Preferred that equals
      5% of the total number of shares of Vertex Series&#160;A Preferred then
      beneficially owned by such holder.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
share of Vertex Series&#160;A Preferred converts into one share of Vertex common
stock, subject to adjustment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Special
Voting Rights</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
holder of each share of Vertex Series&#160;A Preferred is entitled to that
number of votes equal to the number of whole shares of Vertex common stock into
which such holder&#8217;s shares are convertible. In general, holders of Vertex common
stock and Vertex Series&#160;A Preferred vote together as a single class.
However, so long as at least 50% of the shares of the Vertex Series&#160;A
Preferred originally issued in the merger remain outstanding, holders of Vertex
Series&#160;A Preferred are entitled to elect one (1) member of Vertex&#8217;s
five-person board of directors. Any director elected by holders of shares of
Vertex Series&#160;A Preferred may be removed during such director&#8217;s term of
office, either with or without cause, only by the affirmative vote of at least
66-2/3% of the then outstanding shares of Vertex Series&#160;A
Preferred.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="107">LEGAL MATTERS</a></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
validity of the shares of common stock will be passed upon for us by The Loev
Law Firm, PC, Bellaire, Texas.&#160;&#160;David M. Loev, the Manager of The Loev
Law Firm, PC, beneficially owns Stock Options to purchase 10,000 shares of the
Company&#8217;s common stock at an exercise price of $1.20 per share (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Loev
Options</font>&#8221;).&#160;&#160;Other than the Loev Options, The Loev Law Firm, PC,
does not own any interest, contingent or otherwise in the Company.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="108" /><a name="109"><font style="DISPLAY: inline; FONT-WEIGHT: bold">WHERE YOU
CAN FIND MORE INFORMATION</font></a></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We
have filed a registration statement with the Commission on Form S-8 to register
the shares of our common stock being offered by this prospectus. This
prospectus, which is part of the registration statements, does not contain all
the information included in the registration statement. Some information has
been omitted in accordance with the rules and regulations of the Commission. For
further information, please refer to the registration statements and the
exhibits and schedules filed with them. In addition, we file annual, quarterly
and current reports, proxy statements and other information with the Commission.
You may read and copy any reports, statements or other information that we file
at the Commission&#8217;s public reference facilities at 100 F Street, NE, Washington,
DC 20549. Please call the Commission at 1-800-SEC-0330 for further information
regarding the public reference facilities. The Commission maintains a website,
http://www.sec.gov, that contains reports, proxy statements and information
statements and other information regarding registrants that file electronically
with the Commission, including us. Our Commission filings are also available to
the public from commercial document retrieval services. Information contained on
our website should not be considered part of this prospectus.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;You
may also request a copy of our filings at no cost by writing or telephoning us
at:&#160;&#160;Vertex Energy, Inc., 1331 Gemini Street, Houston, Texas 77058,
Attention: Corporate Secretary (866) 660-8156.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-23-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
Commission allows us to &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">incorporate by
reference</font>&#8221; the information we file with them, which means that we can
disclose important information to you by referring you to those documents. The
information incorporated by reference is considered to be part of this
prospectus, and information that we file later with the Commission will
automatically update and supersede this information. We incorporate by reference
the documents listed below:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td align="left" valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(a)</font></div>
              </td>
              <td align="left" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">World
      Waste Technologies, Inc.&#8217;s (Vertex Energy, Inc.&#8217;s predecessor company
      (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">WWT</font>&#8221;))
      Annual Report on Form 10-K filed on March 31, 2009, for the fiscal year
      ended December 31, 2008, which includes audited financial statements as of
      and for the year ended December 31, 2008 (the &#8220;<font style="DISPLAY: inline">Annual
Report</font>&#8221;);</font></div>
              </td>
            </tr>
        </table>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(b)</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">WWT&#8217;s
      Report on Form 10-Q for the period ended March 31, 2009 and the Company&#8217;s
      Report on Form 10-Q for the period ended June 30,
  2009;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(c)</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">WWT&#8217;s
      and the Company&#8217;s Current Reports on Form 8-K and 8-K/A, filed with the
      Commission on April 8, 2009, May 8, 2009, June 26, 2009 and July 31, 2009,
      to the extent filed, and not furnished, including any exhibits and
      attachments thereto (including, but not limited to the attached audited
      financial statements of Vertex Energy, Inc. (Formerly Vertex Holdings,
      L.P.'s assets, liabilities and operations related to certain divisions)
      for fiscal year ended December 31, 2008 and 2007, which are included as an
      Exhibit to the Company&#8217;s Current Report on Form 8-K/A filed on June 26,
      2009); and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(d)</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">All
      other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act
      since the end of the fiscal year covered by the Annual Report referred to
      in (a) above.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
documents subsequently filed by the Company pursuant to Sections 13(a), 13(c),
14 and 15(d) of the Securities Exchange Act of 1934, as amended, after the date
of filing this Registration Statement and prior to such time as the Company
files a post-effective amendment to this Registration Statement which indicates
that all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by
reference in this Registration Statement and to be a part hereof from the date
of filing of such documents.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
statement contained in a document incorporated or deemed to be incorporated
herein by reference shall be deemed to be modified or superseded for the purpose
of this Registration Statement to the extent that a statement contained herein
or in any subsequently filed document which is also, or is deemed to be,
incorporated herein by reference modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this Registration Statement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We
will provide without charge to each person, including any beneficial owner, to
whom a copy of this prospectus is delivered a copy of any or all documents
incorporated by reference into this prospectus except the exhibits to such
documents (unless such exhibits are specifically incorporated by reference in
such documents). Requests for copies can be made by writing or telephoning us
at:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
Energy, Inc., 1331 Gemini Street, Houston, Texas 77058, Attention: Corporate
Secretary (866) 660-8156.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="111">DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION
FOR</a></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">SECURITIES ACT
LIABILITIES</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Insofar as indemnification for liabilities arising under the Securities Act may
be permitted to our directors, officers or persons controlling us, we have been
advised that it is the Commission&#8217;s opinion that such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable.</font><br></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-24-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PART
II</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ITEM 3. INCORPORATION OF
DOCUMENTS BY REFERENCE</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
following documents filed with the Commission are incorporated by reference into
this Registration Statement and are made a part hereof:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td align="left" valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(a)</font></div>
              </td>
              <td align="left" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">World
      Waste Technologies, Inc.&#8217;s (Vertex Energy, Inc.&#8217;s predecessor company
      (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">WWT</font>&#8221;))
      Annual Report on Form 10-K filed on March 31, 2009, for the fiscal year
      ended December 31, 2008, which includes audited financial statements as of
      and for the year ended December 31, 2008 (the &#8220;<font style="DISPLAY: inline">Annual
Report</font>&#8221;);</font></div>
              </td>
            </tr>
        </table>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(b)</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">WWT&#8217;s
      Report on Form 10-Q for the period ended March 31, 2009 and the Company&#8217;s
      Report on Form 10-Q for the period ended June 30,
  2009;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(c)</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">WWT&#8217;s
      and the Company&#8217;s Current Reports on Form 8-K and 8-K/A, filed with the
      Commission on April 8, 2009, May 8, 2009, June 26, 2009 and July 31, 2009,
      to the extent filed, and not furnished, including any exhibits and
      attachments thereto (including, but not limited to the attached audited
      financial statements of Vertex Energy, Inc. (Formerly Vertex Holdings,
      L.P.'s assets, liabilities and operations related to certain divisions)
      for fiscal year ended December 31, 2008 and 2007, which are included as an
      Exhibit to the Company&#8217;s Current Report on Form 8-K/A filed on June 26,
      2009); and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(d)</font></div>
            </td>
            <td align="left" valign="top" width="66%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">All
      other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act
      since the end of the fiscal year covered by the Annual Report referred to
      in (a) above.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
documents subsequently filed by the Company pursuant to Sections 13(a), 13(c),
14 and 15(d) of the Securities Exchange Act of 1934, as amended, after the date
of filing this Registration Statement and prior to such time as the Company
files a post-effective amendment to this Registration Statement which indicates
that all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by
reference in this Registration Statement and to be a part hereof from the date
of filing of such documents.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
statement contained in a document incorporated or deemed to be incorporated
herein by reference shall be deemed to be modified or superseded for the purpose
of this Registration Statement to the extent that a statement contained herein
or in any subsequently filed document which is also, or is deemed to be,
incorporated herein by reference modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this Registration Statement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ITEM 4. DESCRIPTION OF
SECURITIES</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
Stock</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The total
number of authorized shares of the Company&#8217;s common stock is 750,000,000 shares,
$0.001 par value per share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
share of Vertex common stock is entitled to equal dividends and distributions
per share with respect to the common stock when, as and if declared by Vertex&#8217;s
board of directors. No holder of any shares of Vertex common stock has a
preemptive right to subscribe for any Vertex security, nor are any shares of
Vertex common stock subject to redemption or convertible into other securities.
Upon liquidation, dissolution or winding-up of Vertex, and after payment of
creditors and preferred shareholders of Vertex, if any, the assets of Vertex
will be divided pro rata on a share-for-share basis among the holders of Vertex
common stock. Each share of Vertex common stock is entitled to one vote, except
with respect to the election of directors. Shares of Vertex common stock do not
possess any rights in respect of cumulative voting.</font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Preferred
Stock</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The total
number of &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">blank
check</font>&#8221; authorized shares of Vertex preferred stock is 50,000,000 shares,
$0.001 par value per share. The total number of authorized shares of Vertex&#8217;s
Series&#160;A Convertible Preferred Stock (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Vertex Series A
Preferred</font>&#8221;) is 5,000,000.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
Series A Preferred</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
of outstanding shares of Vertex Series&#160;A Preferred are entitled to receive
dividends, when, as, and if declared by Vertex&#8217;s board of directors. No
dividends or similar distributions may be made on shares of capital stock or
securities junior to the Vertex Series&#160;A Preferred until dividends in the
same amount per share on the Vertex Series&#160;A preferred have been declared
and paid. In connection with a liquidation, winding-up, dissolution or sale of
Vertex, each share of Vertex Series&#160;A Preferred is entitled to receive
$1.49 prior to similar liquidation payments due on shares of Vertex common stock
or any other class of securities junior to the Vertex Series&#160;A Preferred.
Shares of Vertex Series&#160;A Preferred are not entitled to participate with
the holders of Vertex common stock with respect to the distribution of any
remaining assets of Vertex.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
share of Vertex Series&#160;A Preferred is entitled to that number of votes
equal to the number of whole shares of Vertex common stock into which it is
convertible. Generally, holders of Vertex common stock and Vertex Series&#160;A
Preferred vote together as a single class.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares of
Vertex Series&#160;A Preferred automatically convert into shares of Vertex
common stock on the earliest to occur of the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">The
      affirmative vote or written consent of the holders of a majority of the
      then-outstanding shares of Vertex Series&#160;A
  Preferred;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">If
      the closing market price of Vertex common stock averages at least $15.00
      per share over a period of 20 consecutive trading days and the daily
      trading volume averages at least 7,500 shares over such
      period;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">If
      Vertex consummates an underwritten public offering of its securities at a
      price per share not less than $10.00 and for a total gross offering amount
      of at least $10&#160;million; or</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">If
      a sale of Vertex occurs resulting in proceeds to the holders of Vertex
      Series&#160;A Preferred of a per share amount of at least
      $10.00.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="72%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Holders
      of Vertex Series&#160;A Preferred may not voluntarily convert their shares
      into Vertex common stock for at least one year following the issuance of
      the Vertex Series&#160;A Preferred. Thereafter, holders may convert their
      shares of Vertex Series&#160;A Preferred subject to the following
      conditions:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="92%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">At
      any time following the one-year anniversary of the issuance of Vertex
      Series&#160;A Preferred, holders may convert only up to that number of
      shares such that, upon conversion, the aggregate beneficial ownership of
      Vertex common stock of any such holder does not exceed 4.99% of Vertex&#8217;s
      common stock then outstanding; and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: symbol, serif">&#183;</font></div>
            </td>
            <td valign="top" width="92%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Prior
      to the three-year anniversary of the issuance of Vertex Series&#160;A
      Preferred, no holder may, in any given three-month period, convert more
      than that number of shares of Vertex Series&#160;A Preferred that equals
      5% of the total number of shares of Vertex Series&#160;A Preferred then
      beneficially owned by such holder.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
share of Vertex Series&#160;A Preferred converts into one share of Vertex common
stock, subject to adjustment.</font></div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Special
Voting Rights</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
holder of each share of Vertex Series&#160;A Preferred is entitled to that
number of votes equal to the number of whole shares of Vertex common stock into
which such holder&#8217;s shares are convertible. In general, holders of Vertex common
stock and Vertex Series&#160;A Preferred vote together as a single class.
However, so long as at least 50% of the shares of the Vertex Series&#160;A
Preferred originally issued in the merger remain outstanding, holders of Vertex
Series&#160;A Preferred are entitled to elect one (1) member of Vertex&#8217;s
five-person board of directors. Any director elected by holders of shares of
Vertex Series&#160;A Preferred may be removed during such director&#8217;s term of
office, either with or without cause, only by the affirmative vote of at least
66-2/3% of the then outstanding shares of Vertex Series&#160;A
Preferred.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ITEM 5. INTEREST OF NAMED
EXPERTS AND COUNSEL</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">David M.
Loev, Manager of The Loev Law Firm, PC, which has passed upon the validity of
the of the shares of common stock offered herein, beneficially owns options to
purchase 10,000 shares of the Company&#8217;s common stock at an exercise price of
$1.20 per share, of which a total of &#188; of such options, or 2,500 options are
exercisable by Mr. Loev as of the date of this Form S-8 filing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ITEM 6. INDEMNIFICATION OF
DIRECTORS AND OFFICERS</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
78.037 of the Nevada Revised Statutes, or &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">NRS,</font>&#8221; allows a
corporation, through its articles of incorporation, to limit or eliminate the
personal liability of directors and officers to the corporation and its
shareholders for damages for breach of fiduciary duty. However, this provision
excludes any limitation on liability for:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acts
      or omissions which involve intentional misconduct, fraud or a knowing
      violation of law; or</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      payment of distributions in violation of Section 78.300 of the
      NRS.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex&#8217;s
articles of incorporation and bylaws provide that directors and officers are not
personally liable to the corporation or its shareholders for damages for breach
of fiduciary duty. Consistent with Nevada law, this provision, however, does not
eliminate or limit the liability of a director for acts or omissions not in good
faith or which involve intentional misconduct, fraud, or a knowing violation of
law, the payment of dividends in violation of NRS Section 78.300 or for any
receipt of an improper personal benefit.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
78.7502 of the NRS permits a corporation to indemnify any agent of the
corporation who was or is a party or is threatened to be made a party to any
proceeding (other than an action by or in the right of the corporation), against
expenses, judgments, fines, settlements, and other amounts incurred in
connection with the proceeding. Further, Section 78.7502 of the NRS provides
that a corporation must indemnify directors, officers, employees and agents
against expenses actually and reasonably incurred to the extent the person was
successful on the merits in defending the proceeding. In addition, Section
78.7502 of the NRS permits indemnification against expenses actually and
reasonably incurred in connection with the defense or settlement of the action
by or in the right of the corporation to obtain a judgment in its favor. A
corporation may not provide indemnification for any:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">claim,
      issue or matter for which the person has been found liable to the
      corporation; or</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">amounts
      paid in settlement to the corporation, unless the court determines that
      the person is fairly and reasonably entitled to indemnity for the
      expenses.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
78.751 of the NRS provides that indemnification, unless ordered by a court, may
not be made to or on behalf of any director, officer, employee or agent if a
court establishes that the person&#8217;s acts or omissions involved intentional
misconduct, fraud or a knowing violation of the law and were material to the
proceeding. In the case of a criminal proceeding, the person must have had no
reasonable cause to believe his or her conduct was unlawful. Section 78.752 of
the NRS permits a corporation to purchase and maintain insurance on behalf of
any person who is or was a director, officer, employee or agent of the
corporation for any liability and expenses whether or not the corporation has
the authority to indemnify the person for the liability and expenses. Vertex&#8217;s
by-laws permit the foregoing indemnification. This indemnification is allowed
only if the person acted in good faith and in a manner the person believed to be
in the best interests of the corporation. The decision of whether
indemnification will be provided must be made by the shareholders, by the board
by a majority vote of a quorum consisting of directors who are not parties to
the proceeding (or a committee thereof), or by independent legal counsel in a
written opinion if ordered by a majority vote of a quorum of disinterested
directors or if a quorum of disinterested directors cannot be
obtained.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-27-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
as indemnification for liabilities arising under the Securities Act, may be
permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Commission such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ITEM 7. EXEMPTION FROM
REGISTRATION CLAIMED</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company granted the stock options (the shares issuable in connection with the
exercise of which are being registered herein) to Directors, officers, employees
and/or consultants in reliance on the exemption under Rule 701 promulgated under
the Securities Act, as transactions by an issuer not involving a public offering
and under a written compensatory benefit plan and/or Section 4(2) of the
Securities Act, as the grants did not involve a public offering, the recipients
took the securities for investment and not resale and the Company took
appropriate measures to restrict transfer</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ITEM 8.
EXHIBITS</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit
Number</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Description of
Exhibit</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.1(1)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
      No. 5, dated as of March 31, 2009, to Amended and Restated Agreement and
      Plan of Merger by and among World Waste Technologies, Inc., Vertex
      Holdings, L.P. (formerly Vertex Energy, L.P.), Vertex Energy, Inc., Vertex
      Merger Sub, LLC and Benjamin P.
Cowart.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 40pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      &#160;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1(2)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Articles
      of Incorporation (and amendments thereto) of Vertex Energy,
      Inc.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 40pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      &#160;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.2(1)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
      and Restated Certificate of Designation of Rights, Preferences and
      Privileges of Vertex Nevada, Inc.'s Series A Convertible Preferred
      Stock.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 40pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      &#160;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.3(2)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Withdrawal
      of Designation of the Company&#8217;s Series B Preferred
  Stock</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 40pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      &#160;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.4(2)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bylaws
      of Vertex Energy, Inc.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 40pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      &#160;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1(2)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
      Energy, Inc., 2008 Stock Incentive
Plan</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 40pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      &#160;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.2(3)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vertex
      Energy, Inc., 2009 Stock Incentive
Plan</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">5.1*</font></div>
            </td>
            <td align="left" valign="top" width="94%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Opinion
      and consent of The Loev Law Firm, PC re: the legality of the shares being
      registered</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">23.1*</font></div>
            </td>
            <td align="left" valign="top" width="94%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Consent
      of The Loev Law Firm, PC (included in Exhibit
  5.1)</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">23.2*</font></div>
            </td>
            <td align="left" valign="top" width="94%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Consent
      of Stonefield Josephson, Inc.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">23.3*</font></div>
            </td>
            <td align="left" valign="top" width="94%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Consent
      of LBB &amp; Associates Ltd., LLP</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1(2)&#160;&#160;Glossary
of Selected Terms</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1) Filed
as an exhibit to the registrant&#8217;s Report on Form 8-K, filed with the Commission
on April 8, 2009, and incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2) Filed
as an exhibit to the registrant&#8217;s Report on Form 8-K/A. filed with the
Commission on June 26, 2009, and incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3) Filed
as an exhibit to the registrant&#8217;s Report on Form 8-K, filed with the Commission
on July 31, 2009, and incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">* Filed
herewith.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-28-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ITEM 9.
UNDERTAKINGS</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
Registrant hereby undertakes:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
file, during any period in which offers or sells are being made, a
post-effective amendment to this registration statement to reflect any facts or
events arising after the effective date of this Registration Statement (or the
most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in this
Registration Statement contained in periodic reports filed with or furnished to
the Commission by the Company pursuant to section 13 or section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in this
Registration Statement and to include any material information with respect to
the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration
statement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;That,
for the purpose of determining liability under the Securities Act of 1933, each
post-effective amendment shall be treated as a new registration statement of the
securities offered, and the offering of the securities at that time shall be
deemed to be the initial bona fide offering thereof.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
file a post-effective amendment to remove from registration any of the
securities being registered that remain unsold at the end of the
offering.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
undersigned Registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the Registrant's
annual report pursuant to Section 13(a) or Section 15(d) of the Securities
Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of
1934) that is incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may
be permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-29-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Act of 1933, the Registrant certifies that
it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this registration statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Houston, Texas on the&#160;2nd day of&#160;October 2009.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
      <div>
        <div align="left">
          <div align="left">
            <div align="left">
              <table cellpadding="0" cellspacing="0" width="100%">
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td align="left" valign="top" width="40%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline">VERTEX ENERGY, INC.</font></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td align="left" valign="top" width="40%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline">By: /s/ Benjamin P.
  Cowart</font></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td align="left" valign="top" width="40%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Benjamin
      P. Cowart</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td align="left" valign="top" width="40%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Executive Officer</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td align="left" valign="top" width="40%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Principal
      Executive Officer)</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td align="left" valign="top" width="40%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline">By: /s/ Christopher
  Stratton</font></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td align="left" valign="top" width="40%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Christopher
      Stratton</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td align="left" valign="top" width="40%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Financial Officer</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                    <td align="left" valign="top" width="40%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Principal
      Accounting
Officer)</font></div>
                    </td>
                  </tr>
              </table>
            </div>
          </div>
        </div>
      </div><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
person whose signature appears below hereby constitutes and appoints Benjamin P.
Cowart as his true and lawful attorney-in-fact and agent, with full power of
substitution and revocation, to sign on his behalf, individually and in each
capacity stated below, all amendments and post-effective amendments to this
Registration Statement and to file the same, with all exhibits thereto and any
other documents in connection therewith, with the Securities and Exchange
Commission under the Securities Act of 1933, granting unto each such
attorney-in-fact and agent full power and authority to do and perform each and
every act and thing requisite and necessary to be done, as fully to all intents
and purposes as such person might or could do in person, hereby ratifying and
confirming each act that said attorney-in-fact and agent may lawfully do or
cause to be done by virtue thereof.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities and on the dates
stated.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <div align="right">
        <div align="right">
          <div align="right">
            <div align="right">
              <div align="right">
                <div align="right">
                  <table cellpadding="0" cellspacing="0" width="100%">
                      <tr>
                        <td align="right" valign="top" width="8%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
                        </td>
                        <td align="left" valign="top" width="25%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman; TEXT-DECORATION: underline">/s/
      Benjamin P. Cowart</font></div>
                        </td>
                        <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="right" valign="top" width="9%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
                        </td>
                        <td align="left" valign="top" width="34%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman; TEXT-DECORATION: underline">/s/
      Christopher Stratton</font></div>
                        </td>
                        <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                      </tr>
                      <tr>
                        <td align="left" valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="left" valign="top" width="25%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Benjamin
      P. Cowart</font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Executive Officer</font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Principal
      Executive Officer)</font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">and
      Chairman</font></div>
                          <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                        </td>
                        <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="left" valign="top" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="left" valign="top" width="34%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Christopher
      Stratton</font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Financial Officer,</font></div>
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Principal
      Accounting Officer)</font></div>
                        </td>
                        <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                      </tr>
                      <tr>
                        <td align="right" valign="top" width="8%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Date:</font></div>
                        </td>
                        <td align="left" valign="top" width="25%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">October
      2, 2009</font></div>
                        </td>
                        <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="right" valign="top" width="9%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Date:</font></div>
                        </td>
                        <td align="left" valign="top" width="34%">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">October
      2, 2009</font></div>
                        </td>
                        <td align="left" valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                      </tr>
                      <tr>
                        <td align="left" valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="left" valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="left" valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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[{"type": "S-8", "sequence": "1", "filename": "vertexs-8.htm", "secsgml_size_bytes": 381341}]
{"company-data": {"conformed-name": "Vertex Energy Inc.", "cik": "0000890447", "assigned-sic": "4953", "irs-number": "943439569", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-162290", "film-number": "091101092"}, "business-address": {"street1": "1331 GEMINI STREET", "city": "HOUSTON", "state": "TX", "zip": "77058", "phone": "866-660-8156"}, "mail-address": {"street1": "1331 GEMINI STREET", "city": "HOUSTON", "state": "TX", "zip": "77058"}, "former-company": [{"former-conformed-name": "WORLD WASTE TECHNOLOGIES INC", "date-changed": "20040830"}, {"former-conformed-name": "VOICE POWERED TECHNOLOGY INTERNATIONAL INC", "date-changed": "19940831"}]}
vertexs-8.htm
As
      filed with the Securities and Exchange Commission on October 2,
      2009
Registration
No. ___________
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
S-8
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
VERTEX ENERGY,
INC.
(EXACT
NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEVADA
94-3439569
(STATE
      OR OTHER JURISDICTION
IDENTIFICATION
      NO.)
(IRS
      EMPLOYER OF
INCORPORATION)
1331 GEMINI STREET, HOUSTON,
TEXAS 77058
(ADDRESS
OF PRINCIPAL EXECUTIVE OFFICES)
VERTEX
ENERGY, INC.
2009 STOCK INCENTIVE PLAN,
VERTEX ENERGY, INC.
2008 STOCK INCENTIVE PLAN, AND
CERTAIN OTHER STOCK
OPTIONS
(FULL
TITLE OF THE PLAN)
Benjamin
P. Cowart
Chief
Executive Officer
1331
Gemini Street
Houston,
Texas 77058
866-660-8156
(Name,
address, and telephone number, including area code, of agent for
service)
Copy
To:
David M.
Loev
The Loev
Law Firm, PC
6300 West
Loop South, Suite 280
Bellaire,
Texas 77401
(713)
524-4110
Indicate
by check mark whether the Registrant is a large accelerated filer, and
accelerated filer, a non-accelerated filer, or a smaller reporting
company.  See the definitions of "
large accelerated
filer,
" "
accelerated filer
"
and "
smaller reporting
company
" in Rule 12b-2 of the Exchange Act.
Large
      accelerated filer
¨
Accelerated
      filer
¨
Non-accelerated
      filer
¨
Smaller
      reporting company
x
CALCULATION OF REGISTRATION
FEE
Title
      of Securities To Be Registered
Amount
      To Be Registered
Proposed
      Maximum Offering Price Per Share (1)
Proposed
      Maximum Aggregate Offering Price
Amount
      Of Registration Fee
Common
      Stock, $0.001 par value
2,575,000
      (2)
$1.01
$2,777,500
$198.04
(1)
Calculated in accordance with Rule 457(c) solely for the purpose of determining
the registration fee. The offering price is based on the last trading price of
the Registrant's common stock as reported on the OTC Bulletin Board as of
September 29, 2009.
(2)
Represents the maximum number of shares of common stock which may be issued
pursuant to awards under the Registrant's 2008 Stock Incentive Plan and 2009
Stock Incentive Plan (collectively the "
Plans
"), of which
Stock Options to purchase 466,500 shares of common
stock (including 10,000 Stock Options which have since expired as
unexercised) and which Stock Options to purchase 815,000 shares of common stock,
respectively, have been granted pursuant to such Plans to date.  This
number also represents Stock Options to purchase an aggregate of 400,000 of our
shares of common stock which were granted outside of the
Plans.  Pursuant to Rule 416(a) under the Securities Act of 1933, as
amended (the "
Securities Act
"),
this registration statement is deemed to register an indeterminate amount of
such additional number of shares of the Registrant's common stock as may be
issuable pursuant to stock split, stock dividend or the like.
PART
I
INFORMATION
REQUIRED IN SECTION 10(A) PROSPECTUS
The
document(s) containing the information specified in Part I will be sent or given
to employees participating in the Plan as specified by Rule 428(b)(1) of the
Securities Act of 1933, as amended (the "
Securities Act
").
Such documents are not being filed with the Securities and Exchange Commission
(the "
Commission
") either
as part of this Registration Statement or as prospectuses or prospectus
supplements pursuant to Rule 424 of the Securities Act. Such documents and the
documents incorporated by reference in this Registration Statement pursuant to
Item 3 of Part II hereof, taken together, constitute a prospectus that
meets the requirements of Section 10(a) of the Securities Act.
Participants
are further advised that the documents incorporated by reference in Item 3 of
Part II of the Registration Statement, of which this prospectus is a part of,
and which are incorporated by reference to this prospectus, are available
without charge, upon written or oral request to the
Company.  Additionally, other documents required to be delivered to
employees pursuant to Rule 428(b) of the Securities Act (§230.428(b)) are
available without charge, upon written or oral request to the
Company.  Such requests may be made to:
Christopher
Carlson
Secretary
1331
Gemini Street
Houston,
Texas 77058
866-660-8156
PROSPECTUS
1,671,500
SHARES
VERTEX ENERGY,
INC.
Common Stock, $0.001 par
value
This
prospectus relates to the reoffer and resale of up to 1,671,500 shares of Vertex
Energy, Inc.'s (the "
Company
", "
we
", "
us
", and "
Vertex's
") common
stock by certain selling shareholders who may be considered our "
affiliates.
" These
selling shareholders have acquired or may acquire these shares upon the exercise
of stock options or pursuant to restricted stock awards or other awards granted
or available to be granted under our 2008 Stock Incentive Plan and 2009 Stock
Incentive Plan (collectively the "
Plans
"), and in
connection with other Stock Option Agreements pursuant to which we granted stock
options to purchase 400,000 shares of our common stock outside of the
Plans.
The
selling shareholders will determine when they will sell their shares, and may
sell their shares at the then-prevailing market price or at prices negotiated at
the time of sale. We will not receive any proceeds from these sales. The brokers
and dealers that the selling shareholders may utilize in selling their shares
may receive compensation in the form of underwriting discounts, concessions or
commissions from the sellers or purchasers of the shares. See "
Plan of
Distribution.
" We will bear all expenses in connection with the
preparation of this prospectus.
Our
common stock is traded on the Over-The-Counter Bulletin Board under the symbol
"
VTNR.
" On
September 23 2009, the last trading price for the common stock, as reported by
the Over-The-Counter Bulletin Board, was $1.18 per share. You are urged to
obtain current market quotations for the common stock.
Our
principal executive offices are located at 1331 Gemini Street, Houston, Texas
77058, and our telephone number is (866) 660-8156.
This investment
involves risk. See "
Risk
Factors
" beginning at
page 5.
NEITHER THE SECURITIES AND EXCHANGE
COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF
THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The date
of this Prospectus is October 2, 2009.
-1-
TABLE OF CONTENTS
Page
PROSPECTUS
      SUMMARY
3
RISK
      FACTORS
5
SPECIAL
      NOTE REGARDING FORWARD-LOOKING INFORMATION
17
USE
      OF PROCEEDS
17
SELLING
      SHAREHOLDERS
17
PLAN
      OF DISTRIBUTION
21
DESCRIPTION
      OF SECURITIES
22
LEGAL
      MATTERS
23
WHERE
      YOU CAN FIND MORE INFORMATION
23
INCORPORATION
      OF CERTAIN DOCUMENTS BY REFERENCE
24
DISCLOSURE
      OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT
      LIABILITIES
24
You
should rely only on the information contained in, or incorporated by reference
into, this prospectus and in any prospectus supplement or amendment. We have not
authorized any other person to provide you with different information.
Information contained on our website does not constitute a part of this
prospectus. The information in this prospectus may only be accurate as of the
date appearing on the cover page of this prospectus, regardless of the time this
prospectus is delivered or common stock is sold.
-2-
PROSPECTUS
SUMMARY
This summary highlights information
contained in this prospectus. While we believe that this summary highlights some
of the most important information about Vertex Energy, Inc. and this offering,
you should read this entire prospectus and the documents incorporated by
reference carefully, including "
Risk
Factors,
" before
deciding to invest in our common stock. References to "
we,
" "
us,
" "
our,
" "
Vertex,
" or the "
Company
" in this prospectus mean Vertex
Energy, Inc.
Business
Overview
We were formed as a Nevada corporation on May 14,
2008.  Pursuant to an Amended and Restated Agreement and Plan of
Merger dated May 19, 2008, by and between Vertex Holdings, L.P. (formerly Vertex
Energy, L.P.), a Texas limited partnership ("
Vertex LP
"), us,
World Waste Technologies, Inc., a California corporation ("
WWT
" or "
World Waste
"), Vertex
Merger Sub, LLC, a California limited liability company and our wholly-owned
subsidiary ("
Merger
Subsidiary
"), and Benjamin P. Cowart, our Chief Executive Officer, as
agent for our shareholders (as amended from time to time, the "
Merger Agreement
").
Effective on April 16, 2009, World Waste merged with and into Merger Subsidiary,
with Merger Subsidiary continuing as the surviving corporation and becoming our
wholly-owned subsidiary (the "
Merger
"). In
connection with the Merger, (i) each outstanding share of World Waste common
stock was cancelled and exchanged for 0.10 shares of our common stock; (ii) each
outstanding share of World Waste Series A preferred stock was cancelled and
exchanged for 0.4062 shares of our Series A preferred stock; and (iii) each
outstanding share of World Waste Series B preferred stock was cancelled and
exchanged for 11.651 shares of our Series A preferred stock.
Additionally,
as a result of the Merger, as the successor entity of World Waste, we assumed
World Waste's filing obligations with the Securities and Exchange Commission
(the "
Commission
") and our
common stock began trading on the Over-The-Counter Bulletin Board under the
symbol "
VTNR.OB
" effective
May 4, 2009 previously "
WDWT.OB
".  Finally,
as a result of the Merger, the common stock of World Waste was effectively
reversed one for ten (10) as a result of the exchange ratios set forth in the
Merger, and unless otherwise noted, the impact of such effective reverse stock
split, created by the exchange ratio set forth above, is retroactively reflected
throughout this prospectus.
Description
of Business Activities:
We
provide a range of services designed to aggregate, process, and recycle
industrial and commercial waste streams. We currently provide these services in
13 states, with our primary focus in the Gulf Coast Region of the United
States.  Our primary focus is on the recycling of used motor oil and
other distressed hydrocarbon streams. This is accomplished (1) through our Black
Oil division, which aggregates used motor oil from third-party collectors and
manages the delivery of this feedstock primarily to third-party re-refining
facilities, as well as blenders, and (2) through our Refining and Marketing
division, which aggregates hydrocarbon streams from collectors and generators
and manages the delivery of the hydrocarbon products to a third-party facility
for further processing, and then manages the sale of the end products. In
addition, we are in the process of implementing a proprietary thermal/chemical
upgrading technology that will process used motor oil and convert it to higher
value products such as marine cutterstock and vacuum-gas
blendstock.
Our
website address is
www.vertexenergy.com
.
Information contained on our website or any other website does not constitute
part of this prospectus.
-3-
This
Offering
Shares of common stock offered by Selling
      Shareholders:
1,671,500
Offering
      price:
The
      selling shareholders and any of their pledgees, assignees and
      successors-in-interest may sell any or all of their shares on any stock
      exchange, market or trading facility on which the securities are traded or
      in private transactions. The sales may be at fixed or negotiated
      prices.
Over-The-Counter
      Bulletin Board Trading Symbol:
VTNR
-4-
RISK
FACTORS
Benjamin
P. Cowart, the Chief Executive Officer and Chairman controls
Vertex.
Benjamin
P. Cowart, Vertex's Chairman and Chief Executive Officer, beneficially owns a
total of approximately 36% of the total outstanding shares of Vertex's capital
stock, and holds the right to vote an additional 22% of Vertex's capital stock
pursuant to voting agreements entered into with various shareholders of Vertex,
which voting agreements provide him the right to elect four (4) of Vertex's five
(5) directors (with the fifth director being appointed by the shareholders of
Vertex's Series A Preferred Stock). The voting agreements remain in effect until
April 16, 2012.  As such, subject to the resale terms and conditions
of the voting agreements and the Lock-up Agreements which certain of Vertex's
shareholders signed, until April 12, 2012, Mr. Cowart will have the right,
to appoint four (4) of Vertex's five (5) directors, and therefore to exercise
significant control over Vertex, including making decisions with respect to
issuing additional shares, entering into mergers, asset sales, and other
fundamental transactions, and amending the terms of Vertex's articles of
incorporation.
Vertex
owes a significant amount of money to Vertex LP in connection with certain
transactions affected pursuant to and in connection with the
Merger.
Pursuant
to an Operating Agreement (described below) entered into between Vertex and
Cedar Marine Terminals, L.P., a wholly-owned subsidiary of Vertex LP ("
CMT
"), in connection
with the Merger, Vertex has the right to a non-revocable, non-transferable,
royalty-free, perpetual (except as provided in the agreement) license to use the
technology associated with certain proprietary technology relating to the
re-refining of certain oil feedstock referred to as our "
Thermal/chemical extraction
technology
" in any market in the world (the "
License
"), provided
that Vertex pays CMT the documented net development costs of the
Thermal/chemical extraction technology, estimated to be $1.4 million (the "
R&D Costs
"),
which have been paid in full to date.   Additionally, pursuant to an
Asset Transfer Agreement and the terms of the Merger, Vertex is required to
assume $1.6 million of Vertex LP debt, of which approximately $85,000 has been
repaid to date.  As such, Vertex will need to pay approximately
$1,515,000, to Vertex LP in connection with the assumption of the debt, which
funds Vertex does not currently have.
Moving
forward, Vertex will need to raise additional funding to pay the expenses
described above, and as such may need to seek additional debt or equity
financing. If debt financing is available and obtained, our interest expense may
increase and we may be subject to the risk of default, depending on the terms of
such financing. If equity financing is available and obtained it may result in
our shareholders experiencing significant dilution. If such financing is
unavailable, we may be forced to curtail our operations, which may cause the
value of our securities to decline in value and/or become
worthless.
Vertex
has no long-term assets and needs to rely on its contracts and relationships
with Vertex LP and its affiliates and certain third parties, which could affect
Vertex's ability to operate its business.
Vertex
does not currently have any long-term assets, but instead its business is
comprised of the rights to various contracts and arrangements. As such, moving
forward, Vertex will need to rely on its relationships and agreements with
Vertex LP and its affiliates, including with the following:
·
CrossRoad
      Carriers, for the transportation of some of Vertex's feedstock and refined
      and re-refined petroleum products;
·
CMT,
      which subleases terminal space to Vertex, and from which Vertex may
      purchase certain re-refining assets;
and
·
Vertex
      Residual Management Group LP, which will perform environmental compliance
      and regulatory oversight for
Vertex.
-5-
Although
Vertex has a right of first refusal to purchase the entities (including the
assets of such entities), there can be no assurance that Vertex will exercise
such right.
In the
event that any of the above-described relationships are terminated, Vertex may
be forced to spend significant resources to identify and secure alternative
sources to provide these services. There can be no assurance that Vertex will be
able to locate such alternative sources on terms acceptable to it, or at all. As
a result, Vertex may be unable to continue its operations in its current form,
may be required to expend significant resources identifying alternative sources
of services, and/or may be forced to expend significant resources to purchase
and/or manufacture long-term assets, the construction of which assets may take a
significant amount of time and capital to complete.
Holders
of shares of common stock will not have the right to vote for
directors.
Due to
Mr. Cowart's beneficial ownership of 36% of Vertex's common stock and voting
agreements which are in place, which allow him to vote an additional 22% of
Vertex's common stock for 4 of the 5 Directors of Vertex, at least one of whom
must be "
independent
" as
defined by the New York Stock Exchange, Mr. Cowart will have the right to
appoint 4 of our 5 Directors for three years. The holders of Vertex's
Series A preferred stock are entitled to elect the remaining Vertex
director. Accordingly, so long as the voting agreements remain in effect and the
shares of Vertex Series A Preferred Stock remain outstanding, the minority
holders of shares of Vertex common stock will not have the right to vote for the
election of directors.
Benjamin
P. Cowart, Vertex's Chief Executive Officer and Chairman of the Board, owns and
is involved in other businesses that have relationships and agreements with
Vertex, including, but not limited to Vertex LP. These relationships may cause
conflicts of interest with Vertex.
Benjamin
P. Cowart, Vertex's Chief Executive Officer and Chairman of the Board, also
serves as the General Partner of and controls several other entities, including,
but not limited to Vertex LP, through VTX, Inc. (collectively, the "
Vertex Entities
"),
that have entered into transactions with, supplied feedstock for, and performed
various business services for Vertex. These transactions and relationships
include the following:
·
Cross
Road Carriers transports some of Vertex's feedstock and refined and re-refined
petroleum products;
·
Vertex
subleases terminal space from CMT and may purchase certain re-refining assets,
and perform certain other services for CMT;
·
Vertex
Residual Management Group LP performs environmental compliance and regulatory
oversight for Vertex; and
·
Vertex Recovery collects used oil
      feedstock and sells it to
Vertex.
Vertex
has (1) a right of first refusal to match any third-party offer to purchase any
of the Vertex Entities on the terms and conditions set forth in such offer; and
(2) the option, exercisable in Vertex's sole discretion any time after the
18-month anniversary of the closing of the merger and so long as Mr. Cowart
is employed by Vertex, to purchase all or any part of the outstanding stock of
any of the Vertex Entities owned by Vertex LP or VTX, Inc., at a price based on
an independent third-party valuation and appraisal of the fair market value of
such Vertex Entity (the "
Right of First
Refusal
"). Pursuant to the merger agreement, Vertex was required to form
a committee of its board of directors (the "
Related Party Transaction
Committee
")  including at least two "
independent
directors
" (defined as any individuals who do not beneficially own more
than 5% of the outstanding voting shares of Vertex, are not employed by, or
officers of, Vertex or any entity related to Mr. Cowart, are not directors
or managers of any such company, are not family members of Mr. Cowart, and
would qualify as "
Independent
Directors
" as defined in the rules and regulations of the New York Stock
Exchange). The Related Party Transaction Committee is charged with the review
and pre-approval of any and all related party transactions, including between
Vertex and Vertex LP, Mr. Cowart, or any other company or individual which
may be affiliated with Mr. Cowart.
-6-
Notwithstanding
the Right of First Refusal and the Related Party Transaction Committee,
perceived or actual conflicts of interest may exist between Mr. Cowart and
Vertex in connection with the Vertex Entities and/or any other entity which
Mr. Cowart may be affiliated and/or control in the future. Furthermore, if
any disagreement were to occur between Mr. Cowart and/or any Vertex Entity,
Vertex may be forced to find alternative suppliers and contractors to supply the
services or products then supplied by any of the Vertex Entities, which new
arrangements may not be on as favorable terms to Vertex, and/or Mr. Cowart
may be forced to make a decision between remaining in control of any of the
Vertex Entities and/or Vertex. Such perceived or actual conflicts of interest
may cause potential investors to not be willing to invest in Vertex, which could
make it harder for Vertex to raise funds through the sale of debt and/or equity
securities and/or cause Vertex's securities to be devalued. As a result of these
perceived and/or actual conflicts of interest, the value of Vertex's securities
may decrease in value and/or be valued less than similarly situated publicly
traded companies without such potential conflicts of interest.
Vertex
has established preferred stock which can be designated by the Vertex Board of
Directors without shareholder approval and has established Series A
preferred stock, which gives the holders a liquidation preference and the
ability to convert such shares into Vertex's common stock.
Vertex
has 50,000,000 shares of preferred stock authorized which includes approximately
4.7 million shares of Series A preferred stock issued and outstanding.
The Vertex Series A preferred stock has a liquidation preference of $1.49
per share. As a result, if Vertex were to dissolve, liquidate or sell its
assets, the holders of Vertex Series A preferred stock would have the right
to receive up to the first approximately $7.0 million in proceeds from any
such transaction. Consequently, holders of Vertex common stock may receive less
consideration or no consideration in connection with such a transaction.
Furthermore, the conversion of Series A preferred stock into common stock
may cause substantial dilution to Vertex's common shareholders. Additionally,
because Vertex's board of directors is entitled to designate the powers and
preferences of the preferred stock without a vote of its shareholders, Vertex's
shareholders will have no control over what designations and preferences
Vertex's future preferred stock, if any, will have.
Vertex's
shareholders may have difficulty selling their shares because such shares will
likely be deemed "
penny
stock.
"
Since the
shares of Vertex common stock are not be listed on a national securities
exchange, if the trading price of such shares is below $5.00 per share, trading
in such shares will be subject to the requirements of certain rules promulgated
under the Securities Exchange Act of 1934, as amended (the "
Exchange Act
"), which
require additional disclosure by broker-dealers in connection with any trades
involving a stock defined as a penny stock (generally, any equity security not
listed on a national securities exchange that has a market price of less than
$5.00 per share, subject to certain exceptions). Such rules require the
delivery, prior to any penny stock transaction, of a disclosure schedule
explaining the penny stock market and the risks associated therewith and impose
various sales practice requirements on broker-dealers who sell penny stocks to
persons other than established customers and accredited investors (generally
defined as an investor with a net worth in excess of $1,000,000 or annual income
exceeding $200,000 individually or $300,000 together with a spouse). For these
types of transactions, the broker-dealer must make a special suitability
determination for the purchaser and have received the purchaser's written
consent to the transaction prior to the sale. The broker-dealer also must
disclose the commissions payable to the broker-dealer, current bid and offer
quotations for the penny stock and, if the broker-dealer is the sole
market-maker, the broker-dealer must disclose this fact and the broker-dealer's
presumed control over the market. Such information must be provided to the
customer orally or in writing before or with the written confirmation of trade
sent to the customer. Monthly statements must be sent disclosing recent price
information for the penny stock held in the account and information on the
limited market in penny stocks. The additional burdens imposed upon
broker-dealers by such requirements could discourage broker-dealers from
effecting transactions in Vertex's common stock, which could severely limit the
market liquidity of such shares of common stock and the ability of such holders
to sell their shares.
-7-
The
market price of Vertex's common stock may be adversely affected by market
volatility.
The
market price of Vertex's common stock is likely to be volatile and could
fluctuate widely in response to many factors, including:
·
actual
      or anticipated variations in Vertex's operating
  results;
·
developments
      with respect to patents or proprietary
rights;
·
announcements
      of technological innovations by Vertex or its
  competitors;
·
announcements
      of new products or new contracts by Vertex or its
    competitors;
·
changes
      in financial estimates by securities analysts and whether Vertex's
      earnings meet or exceed such
estimates;
·
conditions
      and trends in the industries in which Vertex
  operates;
·
changing
      environmental standards;
·
new
      accounting standards;
·
general
      economic, political and market conditions and other factors;
      and
·
the
      occurrence of any of the other risks described in this
    report.
RISKS
RELATING TO VERTEX'S BUSINESS
Vertex's
contracts may not be renewed and its existing relationships may not
continue.
Vertex's
contracts and relationships in the black oil business include feedstock
purchasing agreements with local waste oil collectors, an off-take arrangement
with two re-refineries, along with a few key relationships in the bunkering,
blending and No. 6 oil industry. The agreements with the local waste oil
collectors do not generally have a stated term and can therefore be terminated
by such collectors at will. Vertex's agreement with the major re-refinery
expired on September 30, 2008, and we ceased operating under the agreement
in May 2009. Similarly, Vertex had operated only one contract in connection with
its refining operations, which contract expired on November 1, 2008 and has
continued on a month-to-month basis.  We do not anticipate either of
the two contracts to be renewed at this time. Because Vertex's operations are
extremely dependent on the black oil relationship with the major re-refinery and
the third-party refining contract, the expiration of the two contracts may have
a material adverse effect on Vertex's operations and results of operations.
Additionally, if Vertex were to lose any of its current local waste oil
collectors, Vertex could be required to spend additional resources locating and
providing incentives for other waste oil collectors, which could cause Vertex's
expenses to increase and/or cause it to curtail or abandon its business
plans.
-8-
Vertex
operates in competitive markets, and there can be no certainty that Vertex will
maintain its current customers or attract new customers or that its operating
margins will not be impacted by competition.
The
industries in which Vertex operates are highly competitive. Vertex competes with
numerous local and regional companies of varying sizes and financial resources
in its refining and feedstock consolidation operations, and expects to compete
with larger oil companies, with significantly greater resources than Vertex, in
its planned oil re-refining operations. Vertex expects competition to intensify
in the future. Furthermore, numerous well-established companies are focusing
significant resources on providing refining and re-refining services that will
compete with Vertex's services. We cannot assure you that Vertex will be able to
effectively compete with these other companies or that competitive pressures,
including possible downward pressure on the prices Vertex charges for its
products and services, will not arise. In the event that Vertex cannot
effectively compete on a continuing basis, or competitive pressures arise, such
inability to compete or competitive pressures could have a material adverse
effect on Vertex's business, results of operations and financial
condition.
Disruptions
in the supply of feedstock could have an adverse effect on Vertex's
business.
Vertex
depends on the continuing availability of raw materials, including feedstock, to
remain in production. A serious disruption in supply of feedstock, or
significant increases in the prices of feedstock, could significantly reduce the
availability of raw materials at Vertex's plant, increase production costs and
could have a material adverse effect on its business, results of operations and
financial condition.
For
example, Vertex has previously experienced difficulty in obtaining feedstock
from its suppliers who, because of the sharp downturn in the price of oil (used
and otherwise) have seen their margins decrease substantially, which in some
cases has made it uneconomical for such suppliers to purchase feedstock from
their suppliers and/or sell to Vertex at the rates set forth in their contracts.
Any similar decline in the price of oil and/or the economy in general could
create a decrease in the supply of feedstock, prevent Vertex from maintaining
its required levels of output and/or force Vertex to seek out additional
suppliers of feedstock, who may charge more than its current suppliers, and
therefore adversely affect its results of operations.
Vertex
is subject to numerous environmental and other laws and regulations and, to the
extent Vertex is found to be in violation of any such laws and regulations,
Vertex's business could be materially and adversely affected.
Vertex is
subject to extensive federal, state, provincial and local laws and regulations
relating to the protection of the environment which, among other
things:
·
regulate
      the collection, transportation, handling, processing and disposal of
      hazardous and non-hazardous wastes;
·
impose
      liability on persons involved in generating, handling, processing,
      transporting or disposing hazardous
materials;
·
impose
      joint and several liability for remediation and clean-up of environmental
      contamination; and
·
require
      financial assurance that funds will be available for the closure and
      post-closure care of sites where hazardous wastes are stored, processed or
      disposed.
-9-
The
breadth and complexity of all of these laws and regulations affecting Vertex
make consistent compliance extremely difficult and often result in increased
operating and compliance costs, including requiring the implementation of new
programs to promote compliance. Even with these programs, Vertex and other
companies in the industry are routinely faced with legal and administrative
proceedings which can result in civil and criminal penalties, interruption of
business operations, fines or other sanctions and require expenditures. Under
current law, Vertex may be held liable for damage caused by conditions that
existed before it acquired its assets and/or before it took control of its
leased properties or if it arranges for the transportation, disposal or
treatment of hazardous substances that cause environmental contamination. In the
future, Vertex may be subject to monetary fines, civil or criminal penalties,
remediation, clean-up or stop orders, injunctions, orders to cease or suspend
certain practices or denial of permits required to operate its facilities and
conduct its operations. The outcome of any proceeding and associated costs and
expenses could have a material adverse impact on Vertex's operations and
financial condition.
Environmental
laws and regulations are subject to change and may become increasingly stringent
or relaxed. Interpretation or enforcement of existing laws and regulations, or
the adoption of new laws and regulations, may require Vertex to modify or
curtail its operations or replace or upgrade its facilities or equipment at
substantial costs which it may not be able to pass on to its customers. On the
other hand, if new laws and regulations are less stringent, then Vertex's
customers or competitors may be able to compete with Vertex more effectively,
without reliance on its services, which could decrease the need for its services
and/or increase competition which could adversely affect its revenues and
profitability, if any.
Vertex is
required to obtain and maintain permits, licenses and approvals to conduct its
operations in compliance with such laws and regulations. If Vertex is unable to
maintain its currently held permits, licenses and approvals, it may not be able
to continue certain of its operations. If it is unable to obtain any additional
permits, licenses and approvals which may be required as Vertex expands its
operations, it may be forced to curtail or abandon its current and/or future
planned business operations.
Vertex
could be subject to involuntary shutdowns or be required to pay significant
monetary damages or remediation costs if it is found to be a responsible party
for the improper handling or the release of hazardous substances.
As a
company engaged in the sale, handling, transportation, storage, recycling and
disposal of materials that are or may be classified as hazardous by federal,
state, provincial or other regulatory agencies, Vertex faces risks of liability
for environmental contamination. The federal Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, or "
CERCLA
" or Superfund,
and similar state laws impose strict liability for clean-up costs on current or
former owners and operators of facilities that release hazardous substances into
the environment, as well as on the businesses that generate those substances or
transport them. As a potentially responsible party, or "
PRP,
" Vertex may be
liable under CERCLA for substantial investigation and cleanup costs even if it
operates its business properly and complies with applicable federal and state
laws and regulations. Liability under CERCLA may be joint and several, which
means that if it were found to be a business with responsibility for a
particular CERCLA site, Vertex could be required to pay the entire cost of the
investigation and cleanup, even though it was not the party responsible for the
release of the hazardous substance and even though other companies might also be
liable. Even if Vertex is able to identify who the other responsible parties
might be, it may not be able to compel them to contribute to the remediation
costs, or they might be insolvent or unable to contribute due to lack of
financial resources.
Vertex's
facilities and the facilities of its clients and third-party contractors may
have generated, used, handled and/or disposed of hazardous substances and other
regulated wastes. Environmental liabilities could exist, including cleanup
obligations at these facilities or at off-site locations, which could result in
future expenditures that cannot be currently quantified and which could
materially reduce Vertex's profits. In addition, new services or products
offered by Vertex could expose it to further environmental liabilities for which
it has no historical experience and cannot estimate its potential exposure to
liabilities.
-10-
Vertex
is dependent on third parties for the disposal of its waste
streams.
Vertex
does not own any waste disposal sites. As a result, it is dependent on third
parties for the disposal of waste streams. To date, disposal vendors have met
its requirements, but we cannot assure you that they will continue to do so. If
for some reason Vertex's current disposal vendors cannot perform up to
standards, Vertex may be required to replace them. Although Vertex believes
there are a number of potential replacement disposal vendors that could provide
such services, it may incur additional costs and delays in identifying and
qualifying such replacements. In addition, any mishandling of its waste streams
by disposal vendors could expose Vertex to liability. Any failure by disposal
vendors to properly collect, transport, handle or dispose of Vertex's waste
streams could expose it to liability, damage its reputation and generally have a
material adverse effect on its business, financial condition or results of
operations.
Worsening
economic conditions and trends and downturns in the business cycles of the
industries Vertex serves and which provide services to Vertex would impact its
business and operating results.
A
significant portion of Vertex's customer base is comprised of companies in the
chemical manufacturing and hydrocarbon recovery industries. The overall levels
of demand for its products, refining operations, and future planned re-refined
oil products, are driven by fluctuations in levels of end-user demand, which
depend in large part on general macroeconomic conditions in the U.S., as well as
regional economic conditions. For example, many of Vertex's principal consumers
are themselves heavily dependent on general economic conditions, including the
price of fuel and energy, availability of affordable credit and capital,
employment levels, interest rates, consumer confidence and housing demand. These
cyclical shifts in Vertex's customers' businesses may result in fluctuations in
demand, volumes, pricing and operating margins for its services and
products.
In
addition to its customers, the suppliers of Vertex's feedstock may also be
affected by downturns in the economy and adverse changes in the price of
feedstock. For example, Vertex has recently experienced difficulty obtaining
feedstock from its suppliers who, because of the sharp downturn in the price of
oil (used and otherwise) have seen their margins decrease substantially, which
in some cases have made it uneconomical for such suppliers to purchase feedstock
from their suppliers and/or sell to Vertex at the rates set forth in their
contracts. Any similar decline in the price of oil and/or the economy in general
could create a decrease in the supply of feedstock, prevent Vertex from
maintaining its required levels of output and/or force Vertex to seek additional
suppliers of feedstock, who may charge more than its current suppliers, and
therefore adversely affect its results of operations.
Vertex's
operating margins and profitability may be negatively impacted by changes in
fuel and energy costs.
Vertex
transports its refined oil, and plans in the future to transport re-refined oil,
with trucks and by rail. As a result, increases in shipping and transportation
costs caused by increases in oil, gasoline and diesel prices have a significant
impact on its operating expenses. The price and supply of oil and gas is
unpredictable and fluctuates based on events beyond Vertex's control, including
geopolitical developments, supply and demand for oil and natural gas, actions by
OPEC and other oil and gas producers, war and unrest in oil producing countries,
regional production patterns and environmental concerns. A significant increase
in transportation or fuel costs could lower Vertex's operating margins and
negatively impact its profitability.
Additionally,
the price at which Vertex sells its refined oil and re-refined oil is affected
by changes in certain oil indexes. If the relevant oil index rises, Vertex
anticipates being able to increase the prices for its refined and re-refined
oil. If the relevant oil index declines, Vertex anticipates having to reduce
prices for its refined and re-refined oil. However, the cost to collect used oil
and refinery feedstock, including the amounts that must be paid to obtain used
oil and feedstock, generally also increases or decreases when the relevant index
increases or decreases. Even though the prices that can be charged for Vertex's
refined (and in the future, re-refined) products and the costs to collect,
refine, and re-refine the feedstock generally increase and decrease together,
Vertex cannot assure you that when the costs to collect, refine and re-refine
used oil and petrochemical products increase, Vertex will be able to increase
the prices it charges for its refined and re-refined products to cover such
increased costs, or that the costs to collect, refine and re-refine used oil and
petrochemical products will decline when the prices Vertex can charge for its
products declines. If the prices Vertex charges for its finished products and
the costs to collect, refine and re-refine products do not move together or in
similar magnitudes, Vertex's profitability may be materially and negatively
impacted.
-11-
Recently,
as a result of a number of factors including Hurricane Ike, which caused damage
to Vertex's infrastructure and prevented Vertex from selling its product for a
significant period of time, and the simultaneous sharp decline in the price of
oil, Vertex was unable to sell off its inventory. As a result, during the fourth
quarter of 2008 and the first quarter of 2009 Vertex was storing a substantial
amount of inventory which it had purchased while the price of oil was relatively
high and which was later valued at significantly less than what it was
originally purchased for. Vertex was forced to sell the inventory at a material
loss.  There can be no assurance that similar problems will not affect
Vertex moving forward. If such issues were to affect Vertex, its inventory,
ability to meet its ongoing delivery requirements and results of operations
could be adversely affected.
Expansion
of Vertex's business may result in unanticipated adverse
consequences.
In the
future, Vertex may seek to grow its business by investing in new or existing
facilities or technologies, making acquisitions or entering into partnerships
and joint ventures. Acquisitions, partnerships, joint ventures or investments
may require significant managerial attention, which may divert management from
its other activities and may impair the operation of Vertex's existing
businesses. Any future acquisitions of businesses or facilities could entail a
number of additional risks, including:
·
the
      failure to successfully integrate the acquired businesses or facilities or
      new technology into Vertex's
operations;
·
the
      inability to maintain key pre-acquisition business
      relationships;
·
loss
      of key personnel of the acquired business or
  facility;
·
exposure
      to unanticipated liabilities; and
·
the
      failure to realize efficiencies, synergies and cost
    savings.
As a
result of these and other factors, including the general economic risk
associated with the industries in which it operates, Vertex may not be able to
realize the expected benefits from any future acquisitions, partnerships, joint
ventures or other investments.
Vertex
depends heavily on the services of its Chief Executive Officer and Chairman,
Benjamin P. Cowart.
Vertex's
success depends heavily upon the personal efforts and abilities of Benjamin P.
Cowart, its Chief Executive Officer and Chairman, who is employed by Vertex
under a five-year employment contract. Vertex does not currently have any "
key man
" life
insurance policy in place for Mr. Cowart. Mr. Cowart has numerous
business relationships with entities separate from Vertex, which could take a
significant portion of his time and/or could cause conflicts of interest with
Vertex's operations. The loss of Mr. Cowart or other key employees could
have a material adverse effect on Vertex's business, results of operations or
financial condition. In addition, the absence of Mr. Cowart may force
Vertex to seek a replacement who may have less experience or who may not
understand Vertex's business as well, or Vertex may not be able to find a
suitable replacement.
-12-
Unanticipated
problems or delays in building Vertex's facilities to the proper specifications
may harm its business and viability.
Vertex's
future growth will depend on its ability to timely and economically complete and
operate its planned re-refining facility and operate its existing refining
operations. If Vertex's operations are disrupted or its economic integrity is
threatened for unexpected reasons, its business may experience a substantial
setback. Moreover, the occurrence of significant unforeseen conditions or events
in connection with the construction of Vertex's planned facility may require it
to reexamine its business model. Any change to Vertex's business model or
management's evaluation of the viability of its planned services may adversely
affect its business. Construction costs for Vertex's facility may also increase
to a level that would make a new facility too expensive to complete or
unprofitable to operate. Contractors, engineering firms, construction firms and
equipment suppliers also receive requests and orders from other companies and,
therefore, Vertex may not be able to secure their services or products on a
timely basis or on acceptable financial terms. Vertex may suffer significant
delays or cost overruns as a result of a variety of factors, such as increases
in the prices of raw materials, shortages of workers or materials,
transportation constraints, adverse weather, equipment failures, fires, damage
to or destruction of property and equipment, environmental damage, unforeseen
difficulties or labor issues, any of which could prevent Vertex from commencing
operations as expected at its planned re-refining facility.
Strategic
relationships on which Vertex relies are subject to change.
Vertex's
ability to identify and enter into commercial arrangements with feedstock
suppliers and refined and re-refined oil clients depends on developing and
maintaining close working relationships with industry participants. Vertex's
success in this area also depends on its ability to select and evaluate suitable
projects as well as to consummate transactions in a highly competitive
environment. These factors are subject to change and may impair Vertex's ability
to grow.
Disruptions
to infrastructure could materially and adversely affect Vertex's
business.
Vertex's
business depends on the continuing availability of rail, road, port, storage and
distribution infrastructure. Any disruptions in this infrastructure network,
whether caused by labor difficulties, earthquakes, storms, other natural
disasters, human error or malfeasance or other reasons, could have a material
adverse effect on Vertex's business. Vertex relies on third parties to maintain
the rail lines from their plants to the national rail network, and any failure
by these third parties to maintain the lines could impede the delivery of
products, impose additional costs and could have a material adverse effect on
Vertex's business, results of operations and financial condition. For example,
recent damage to the Cedar Marine Terminal as a result of Hurricane Ike (which
caused the terminal to temporarily be out of operation), resulted in increased
costs associated with the shipping of feedstock through third party contractors,
thereby raising the overall cost of the feedstock and lowering Vertex's margins.
Additional hurricanes or natural disasters in the future could cause similar
damage to Vertex's infrastructure, prevent Vertex from generating revenues while
such infrastructure is undergoing repair (if repairable) and/or cause Vertex's
margins and therefore its results of operations to be adversely
affected.
Vertex's
commercial success will depend in part on its ability to obtain and maintain
protection of its intellectual property.
Vertex's
success will depend in part on its ability to maintain or obtain and enforce any
future patent rights and/or other intellectual property protection for its
technologies and to preserve its trade secrets, and to operate without
infringing upon the proprietary rights of third parties. Vertex has not obtained
patents (although patent applications for the Company's licensed Thermo-Chemical
Extraction Process are pending) in the United States or internationally for its
technology to date. We cannot assure you that such patents will be granted or
that the scope of any claims granted in any patent will provide Vertex with
proprietary protection or a competitive advantage. We cannot assure you that if
granted, such patents will be valid or will afford Vertex with protection
against competitors with similar technology. The failure to obtain or maintain
patent or other intellectual property protection on the technologies underlying
Vertex's technologies may have a material adverse effect on its competitive
position and business prospects. It is also possible that Vertex's technologies
may infringe on patents or other intellectual property rights owned by others.
Vertex may have to alter its products or processes, pay licensing fees, defend
an infringement action or challenge the validity of the patents in court, or
cease activities altogether because of patent rights of third parties, thereby
causing additional unexpected costs and delays to it. We cannot assure you that
a license will be available to Vertex, if at all, upon terms and conditions
acceptable to it or that it will prevail in any intellectual property
litigation. Intellectual property litigation is costly and time consuming, and
we cannot assure you that Vertex will have sufficient resources to pursue such
litigation. If Vertex does not obtain a license under such intellectual property
rights, is found liable for infringement or is not able to have such patents
declared invalid, Vertex may be liable for significant money damages and may
encounter significant delays in bringing products to market.
-13-
Competition
may impair Vertex's success.
New
technologies may be developed by others that could compete with Vertex's
refining and re-refining technologies. In addition, Vertex faces competition
from other producers of oil substitutes and related products. Such competition
is expected to be intense and could significantly drive down the price for
Vertex's products. Competition will likely increase as prices of energy in the
commodities market, including refined and re-refined oil, rise. Additionally,
new companies are constantly entering the market, thus increasing the
competition even further. These companies may have greater success in the
recruitment and retention of qualified employees, as well as in conducting their
own refining and re-refining operations, and may have greater access to
feedstock, market presence, economies of scale, financial resources and
engineering, technical and marketing capabilities, which may give them a
competitive advantage. In addition, actual or potential competitors may be
strengthened through the acquisition of additional assets and interests. If
Vertex is unable to compete effectively or adequately respond to competitive
pressures, this may materially adversely affect its results of operation and
financial condition and could also have a negative impact on its ability to
obtain additional capital from investors.
Potential
competition from Vertex's existing employees and affiliated entities could
negatively impact Vertex's profitability.
Although
Mr. Cowart and other employees of Vertex will be prohibited from competing
with Vertex while they are employed with Vertex and for six months thereafter,
none of such individuals will be prohibited from competing with Vertex after
such six month period ends. Additionally, none of Mr. Cowart's affiliated
companies, including Vertex LP, are prohibited from competing with Vertex.
Accordingly, any of these individuals or entities could be in a position to use
industry experience gained while working with Vertex to compete with Vertex.
Such competition could increase Vertex's costs to obtain feedstock, and increase
its costs for contracting use of operating assets and services such as third
party refining capacity, trucking services or terminal access. Furthermore, such
competition could distract or confuse customers, reduce the value of Vertex's
intellectual property and trade secrets, or result in a reduction in the prices
Vertex is able to obtain for its finished products. Any of the foregoing could
reduce Vertex's future revenues, earnings or growth prospects.
Competition
due to advances in renewable fuels may lessen the demand for Vertex's products
and negatively impact its profitability.
Alternatives
to petroleum-based products and production methods are continually under
development. For example, a number of automotive, industrial and power
generation manufacturers are developing alternative clean power systems using
fuel cells or clean-burning gaseous fuels that may address increasing worldwide
energy costs, the long-term availability of petroleum reserves and environmental
concerns, which if successful could lower the demand for Vertex's services. If
these non-petroleum based products and oil alternatives continue to expand and
gain broad acceptance such that the overall demand for Vertex's products is
reduced, it may not be able to compete effectively in the
marketplace.
-14-
Vertex
will rely on new technology to conduct its business, including its licensed
Thermo-Chemical Extraction Process, and its technology could become ineffective
or obsolete.
Vertex
will be required to continually enhance and update its technology to maintain
its efficiency and to avoid obsolescence. Additionally, Vertex initially plans
to rely on the License from CMT in connection with a
Thermal/chemical extraction
technology
(the "
Process
").  The
Process is currently commercially unproven and may never work in a profitable
manner, if at all.  Additionally, the costs moving forward of
enhancing and updating its technology may be substantial and may be higher than
the costs that Vertex anticipates for technology maintenance and development. If
Vertex is unable to maintain the efficiency of its technology, its ability to
manage its business and to compete may be impaired. Even if Vertex is able to
maintain technical effectiveness, its technology may not be the most efficient
means of reaching its objectives, in which case it may incur higher operating
costs than it would if its technology was more effective. The impact of
technical shortcomings, including but not limited to the failure of the Process,
could have a material adverse effect on Vertex's prospects, business, financial
condition, and results of operations.
Vertex's
business is subject to local, legal, political, and economic factors which are
beyond its control.
Vertex
believes that the current political environment for construction of its planned
re-refining facility is sufficiently supportive to enable it to plan and
implement its operations. However, there are risks that conditions will change
in an adverse manner. These risks include, but are not limited to, environmental
issues, land use, air emissions, water use, zoning, workplace safety,
restrictions imposed on the re-refining industry such as restrictions on
production, substantial changes in product quality standards, restrictions on
feedstock supply, price controls and export controls. Any changes in financial
incentives, investment regulations, policies or a shift in political attitudes
are beyond the control of Vertex and may adversely affect its business and
future financial results.
Environmental
risks and regulations may adversely affect Vertex's business.
All
phases of designing, constructing and operating Vertex's refining and planned
re-refining plant present environmental risks and hazards. Vertex is subject to
environmental regulation implemented or imposed by a variety of federal, state
and municipal laws and regulations as well as international conventions. Among
other things, environmental legislation provides for restrictions and
prohibitions on spills and discharges, as well as emissions of various
substances produced in association with Vertex's operations. Legislation also
requires that facility sites be operated, maintained, abandoned and reclaimed in
such a way that would satisfy applicable regulatory authorities. Compliance with
such legislation can require significant expenditures and a breach could result
in the imposition of fines and penalties, some of which could be material.
Environmental legislation is evolving in a manner Vertex expects may result in
stricter standards and enforcement, larger fines and liability, as well as
potentially increased capital expenditures and operating costs. The presence or
discharge of pollutants in or into the air, soil or water may give rise to
liabilities to governments and third parties and may require Vertex to incur
costs to remedy such presence or discharge. If Vertex is unable to remediate
such conditions economically or obtain reimbursement or indemnification from
third parties, its financial condition and results of operations could be
adversely affected. Vertex cannot assure you that the application of
environmental laws to its business will not cause it to limit its production, to
significantly increase the costs of its operations and activities, to reduce the
market for its products or to otherwise adversely affect its financial
condition, results of operations or prospects.
-15-
Penalties
Vertex may incur could impair its business.
Failure
to comply with government regulations could subject Vertex to civil and criminal
penalties and may negatively affect the value of its assets or its ability to
conduct its business. Vertex may also be required to take corrective actions,
including, but not limited to, installing additional equipment, which could
require it to make substantial capital expenditures. Vertex could also be
required to indemnify its employees in connection with any expenses or
liabilities that they may incur individually in connection with regulatory
action against Vertex. These could result in a material adverse effect on
Vertex's prospects, business, financial condition and its results of
operations.
If
Vertex cannot maintain adequate insurance coverage, it will be unable to
continue certain operations.
Vertex's
business exposes it to various risks, including claims for causing damage to
property and injuries to persons that may involve allegations of negligence or
professional errors or omissions in the performance of its services. Such claims
could be substantial. Vertex believes that its insurance coverage is presently
adequate and similar to, or greater than, the coverage maintained by other
similarly situated companies in the industry. If Vertex is unable to obtain
adequate or required insurance coverage in the future, or if such insurance is
not available at affordable rates, Vertex could be in violation of its permit
conditions and other requirements of the environmental laws, rules and
regulations under which it operates. Such violations could render Vertex unable
to continue certain of its operations. These events could result in an inability
to operate certain assets and significantly impair its financial
condition.
Increases
in energy costs will affect Vertex's operating results and financial
condition.
Vertex's
production costs will be dependent on the costs of the energy sources used to
run its facilities and to procure feedstock. These costs are subject to
fluctuations and variations, and Vertex may not be able to predict or control
these costs. If these costs exceed Vertex's expectations, this may adversely
affect its results of operations.
Vertex's
insurance policies do not cover all losses, costs or liabilities that it may
experience.
Vertex
maintains insurance coverage, but these policies do not cover all of its
potential losses, costs or liabilities. Vertex could suffer losses for
uninsurable or uninsured risks, or in amounts in excess of its existing
insurance coverage, which would significantly affect its financial performance.
Vertex's insurance policies also have deductibles and self-retention limits that
could expose it to significant financial expense. Vertex's ability to obtain and
maintain adequate insurance may be affected by conditions in the insurance
market over which it has no control. The occurrence of an event that is not
fully covered by insurance could have a material adverse effect on Vertex's
business, financial condition and results of operations. In addition, Vertex's
business requires that it maintain various types of insurance. If such insurance
is not available or not available on economically acceptable terms, Vertex's
business would be materially and adversely affected.
-16-
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
This
prospectus includes and incorporates forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
"
Securities
Act
"), and Section 21E of the Securities Exchange Act of 1934, as
amended (the "
Exchange
Act
"). All statements, other than statements of historical facts,
included or incorporated in this prospectus regarding our strategy, future
operations, financial position, future revenues, projected costs, prospects,
plans and objectives of management are forward-looking statements. The words
"
anticipates,
"
"
believes,
"
"
estimates,
"
"
expects,
"
"
intends,
"
"
may,
" "
plans,
" "
projects,
" "
would
" and similar
expressions are intended to identify forward-looking statements, although not
all forward-looking statements contain these identifying words. We cannot
guarantee that we actually will achieve the plans, intentions or expectations
disclosed in our forward-looking statements and you should not place undue
reliance on our forward-looking statements. Actual results or events could
differ materially from the plans, intentions and expectations disclosed in the
forward-looking statements we make. We have included important factors in the
cautionary statements included or incorporated in this prospectus, particularly
under the heading "
Risk Factors
", that
we believe could cause actual results or events to differ materially from the
forward-looking statements that we make. Our forward-looking statements do not
reflect the potential impact of any future acquisitions, mergers, dispositions,
joint ventures or investments we may make. Any such forward-looking statements
represent management's views as of the date of the document in which such
forward-looking statement is contained. While we may elect to update such
forward-looking statements at some point in the future, we disclaim any
obligation to do so, even if subsequent events cause our views to
change.
USE OF
PROCEEDS
The
shares of common stock offered by this prospectus are being registered for the
account of the selling shareholders identified in this prospectus. See "
Selling
Shareholders.
" All net proceeds from the sale of the shares of common
stock will go to the shareholders that offer and sell their shares. We will not
receive any part of the proceeds from such sales of common stock. We may
however, receive the exercise price of the options at the time of their
exercise, assuming such selling shareholders do not make a cashless exercise of
their options. Such proceeds, if any, will be contributed to working capital and
will be used for general corporate purposes.
SELLING
SHAREHOLDERS
The
shares of common stock to which this prospectus relates may be reoffered and
sold from time to time by selling shareholders who may be deemed our "
affiliates
" (as
defined in Rule 501(b) of Regulation D of the Securities Act). The selling
shareholders will acquire or have acquired the shares of common stock upon
exercise of options granted or to be granted to them pursuant to our 2008 Stock
Incentive Plan and our 2009 Stock Incentive Plan (collectively the "
Plans
"), and in
connection with other Stock Option Agreements pursuant to which we granted stock
options to purchase 400,000 shares of our common stock outside of the Plans. The
table below identifies each selling shareholder and his or her relationship to
us. The table also sets forth, as of September 15, 2009 for each selling
shareholder: (i) the number of shares of common stock beneficially owned
prior to this offering, (ii) the number of shares of common stock that may
be offered and sold through this prospectus, and (iii) the number of shares
and the percentage of the total voting represented by such shares to be owned by
each such selling shareholder assuming the sale of all of the registered shares.
There is no assurance that any of the selling shareholders will sell any or all
of their shares of common stock. The inclusion in the table of the individuals
named therein shall not be deemed to be an admission that any such individuals
are one of our affiliates. Except as otherwise noted, all shares of common stock
are beneficially owned and the sole investment and voting power is held by the
person named. Information regarding the selling shareholders, including the
number of shares offered for sale, may change from time to time, and any changed
information will be set forth in a prospectus supplement to the extent required.
Furthermore, certain unnamed non-affiliates, each of whom holds less than the
lesser of 1,000 shares or one percent of the shares issuable under the Plan, may
use this prospectus for reoffers and resales of shares up to that
amount.  The inclusion of shares in the table below does not
constitute a commitment to sell any of the shares.
-17-
Beneficial
      Ownership
After
      this Offering (1)(2)
Name
Position
Total
      Beneficial Ownership Prior to this Offering
Shares
      that may be Offered and Sold Hereby (3)
Number
      of Shares
Percent
      of Outstanding Voting Shares (1)
Allison
      Szempruch
Employee
0
10,000
0
*
Benjamin
      P. Cowart
Chief
      Executive Officer, President and Chairman
7,292,161
(a)
80,000
7,292,161
56.1%
Christopher
      Carlson
Secretary
299,522
(b)
165,000
264,522
2.0%
Christopher
      Stratton
Chief
      Financial Officer
0
100,000
0
*
Dan
      Borgen
Director
5,000
(c)
100,000
0
*
David
      Braykovich
Employee
6,250
25,000
0
*
David
      Loev
Consultant
2,500
10,000
0
*
David
      Phillips
Director
5,000
(d)
100,000
0
*
Dean
      Allcorn
Consultant
1,875
7,500
0
*
Greg
      Wallace
Employee
149,574
224,000
118,574
*
Ingram
      Lee
Director
213,331
(e)
100,000
208,331
1.6%
John
      Pimentel
Director
458,279
(f)
280,000
258,279
2.0%
John
      Schulz
Employee
5,000
40,000
0
*
John
      Strickland
Employee
15,000
85,000
0
*
John
      Worster
Consultant
0
40,000
0
*
Kathy
      Scott
Employee
0
25,000
0
*
Matthew
      Lieb
Chief
      Operating Officer
97,814
(g)
250,000
40,000
*
Ron
      Gemeinhardt
Consultant
2,500
10,000
0
*
Sally
      Edwards
Employee
0
10,000
0
*
Stella
      Almaguer
Employee
0
10,000
0
*
Total
      Shares
1,671,500
-18-
* Denotes
less than 1%.
(1) Based
on 8,251,616 shares of Vertex common stock issued and outstanding and 4,755,566
shares of Series A Preferred Stock issued and outstanding (which each vote one
voting share on shareholder matters) totaling 13,007,172 voting shares.
Additionally, shares of common stock subject to options, warrants or other
convertible securities that are currently exercisable or convertible, or
exercisable or convertible within 60 days of September 15, 2009, are deemed to
be outstanding and to be beneficially owned by the person or group holding such
options, warrants or other convertible securities for the purpose of computing
the percentage ownership of such person or group, but are not treated as
outstanding for the purpose of computing the percentage ownership of any other
person or group.
(2)
Assumes the sale of all shares of common stock registered pursuant to this
prospectus, although selling shareholders are under no obligation known to us to
sell any shares of common stock at this time.
(3)
Represents shares of common stock issuable in connection with the exercise of
outstanding stock options, a portion of which may have not vested to date and/or
may not be exercisable and as such have not been included in the column entitled
"
Total Beneficial
Ownership Prior to this Offering
" as such securities are not exercisable
within 60 days of September 15, 2009.
(a)
Includes 55,311 shares held by VTX, Inc., which Mr. Cowart serves as President
of and is deemed to beneficially own ("
VTX
").  Also
includes warrants to purchase an aggregate of 7,789 shares of the Company's
common stock held by VTX, at various exercise prices from $1.55 to $37.00 per
share, and with various expiration dates from between April 28, 2010 and
February 26, 2018, granted to VTX, as a Partner of Vertex LP, for consideration
in connection with the Merger (as described above)(the "
Make-Whole
Warrants
").  Also includes Make-Whole Warrants to purchase an
aggregate of 658,690 shares of our common stock held personally by Mr.
Cowart.  Does not include the stock options to purchase 80,000 shares
of the Company's common stock at $0.45 per share, shown in the table entitled
"
Shares that may be
Offered and Sold Hereby,
" as such stock options have not vested to Mr.
Cowart and are not exercisable within 60 days of September 15,
2009.
(b)
Includes Make-Whole Warrants to purchase 41,278 shares of our common stock and
options to purchase 35,000 shares of the Company's common stock at an exercise
price of $1.20 per share.  Does not include options to purchase
105,000 shares of the Company's common stock at an exercise price of $1.20 per
share, or stock options to purchase 25,000 shares of the Company's common stock
at $0.45 per share, which options are however shown in the table entitled "
Shares that may be Offered
and Sold Hereby,
" as such stock options have not vested to Mr. Carlson
and are not exercisable within 60 days of September 15, 2009.
(c)
Includes options to purchase 5,000 shares of the Company's common stock at an
exercise price of $1.20 per share.  Does not include options to
purchase 15,000 shares of the Company's common stock at an exercise price of
$1.20 per share, which options have not vested to Mr. Borgen to date, or stock
options to purchase 80,000 shares of the Company's common stock at $0.45 per
share, which options are however shown in the table entitled "
Shares that may be Offered
and Sold Hereby,
" as such stock options have not vested to Mr. Borgen and
are not exercisable within 60 days of September 15, 2009.
(d)
Includes options to purchase 5,000 shares of the Company's common stock at an
exercise price of $1.20 per share.  Does not include options to
purchase 15,000 shares of the Company's common stock at an exercise price of
$1.20 per share, which options have not vested to Mr. Phillips to date, or stock
options to purchase 80,000 shares of the Company's common stock at $0.45 per
share, which options are however shown in the table entitled "
Shares that may be Offered
and Sold Hereby,
" as such stock options have not vested to Mr. Phillips
and are not exercisable within 60 days of September 15, 2009.
-19-
(e)
Includes 182,622 shares owned by PTI, Inc., which are beneficially owned by Mr.
Lee ("
PTI
").  Also
includes Make-Whole Warrants to purchase 25,709 shares of our common stock owned
by PTI, and options to purchase 5,000 shares of the Company's common stock at an
exercise price of $1.20 per share.  Does not include options to
purchase 15,000 shares of the Company's common stock at an exercise price of
$1.20 per share, which options have not vested to Mr. Lee to date, or stock
options to purchase 80,000 shares of the Company's common stock at $0.45 per
share, which options are however shown in the table entitled "
Shares that may be Offered
and Sold Hereby,
" as such stock options have not vested to Mr. Lee and
are not exercisable within 60 days of September 15, 2009.
(f)
Includes 35,000 shares held by Mr. Pimentel's wife, 3,030 shares of the
Company's Series A Preferred Stock, warrants to acquire 250 shares of our common
stock at an exercise price of $27.50 per share, and options to acquire 200,000
shares of common stock at an exercise price of $0.50 per share.  Does
not include the stock options to purchase 80,000 shares of the Company's common
stock at $0.45 per share, shown in the table entitled "
Shares that may be Offered
and Sold Hereby,
" as such stock options have not vested to Mr. Pimentel
and are not exercisable within 60 days of September 15, 2009.
(g)
Includes options to purchase 40,000 shares of our common stock at an exercise
price of $14.20 per share and options to purchase 35,938 shares of our common
stock at an exercise price of $0.50 per share.  Does not include options to
purchase 164,062 shares of our common stock, or stock options to purchase 50,000
shares of the Company's common stock at $0.45 per share, which options are
however shown in the table entitled "
Shares that may be Offered
and Sold Hereby,
" as such stock options have not vested to Mr. Lieb and
are not exercisable within 60 days of September 15, 2009.
-20-
PLAN OF DISTRIBUTION
The
shares covered by this prospectus may be offered and sold from time to time by
the selling stockholders. The term "
selling stockholders
"
includes donees, pledgees, transferees or other successors-in-interest selling
shares received after the date of this prospectus from a selling stockholder as
a gift, pledge, partnership distribution or other non-sale related transfer. The
selling stockholders will act independently of us in making decisions with
respect to the timing, manner and size of each sale. Such sales may be made on
one or more exchanges or in the over-the-counter market or otherwise, at prices
and under terms then prevailing or at prices related to the then current market
price or in negotiated transactions. The selling stockholders may sell their
shares by one or more of, or a combination of, the following
methods:
•
purchases
      by a broker-dealer as principal and resale by such broker-dealer for its
      own account pursuant to this prospectus;
•
ordinary
      brokerage transactions and transactions in which the broker solicits
      purchasers;
•
block
      trades in which the broker-dealer so engaged will attempt to sell the
      shares as agent but may position and resell a portion of the block as
      principal to facilitate the transaction;
•
an
      over-the-counter distribution in accordance with the rules of the
      Over-The-Counter Bulletin Board (or such market or exchange on which the
      Company's securities then trade) ; and
•
in
      privately negotiated transactions.
In addition, any shares that qualify for sale pursuant to Rule 144 may be
sold under Rule 144 rather than pursuant to this prospectus.
To
the extent required, this prospectus may be amended or supplemented from time to
time to describe a specific plan of distribution. In connection with
distributions of the shares or otherwise, the selling stockholders may enter
into hedging transactions with broker-dealers or other financial institutions.
In connection with such transactions, broker-dealers or other financial
institutions may engage in short sales of the common stock in the course of
hedging the positions they assume with selling stockholders.
In effecting sales, broker-dealers or agents engaged by the selling stockholders
may arrange for other broker-dealers to participate. Broker-dealers or agents
may receive commissions, discounts or concessions from the selling stockholders
in amounts to be negotiated immediately prior to the sale.
In offering the shares covered by this prospectus, the selling stockholders and
any broker-dealers who execute sales for the selling stockholders may be deemed
to be "
underwriters
" within
the meaning of the Securities Act in connection with such sales. Any profits
realized by the selling stockholders and the compensation of any broker-dealer
may be deemed to be underwriting discounts and commissions.
In
order to comply with the securities laws of certain states, if applicable, the
shares must be sold in such jurisdictions only through registered or licensed
brokers or dealers. In addition, in certain states the shares may not be sold
unless they have been registered or qualified for sale in the applicable state
or an exemption from the registration or qualification requirement is available
and is complied with.
We have advised the selling stockholders that the anti-manipulation rules of
Regulation M under the Exchange Act may apply to sales of shares in the
market and to the activities of the selling stockholders and their affiliates.
In addition, we will make copies of this prospectus available to the selling
stockholders for the purpose of satisfying the prospectus delivery requirements
of the Securities Act. The selling stockholders may indemnify any broker-dealer
that participates in transactions involving the sale of the shares against
certain liabilities, including liabilities arising under the Securities
Act.
At the time a particular offer of shares is made, if required, a prospectus
supplement will be distributed that will set forth the number of shares being
offered and the terms of the offering, including the name of any underwriter,
dealer or agent, the purchase price paid by any underwriter, any discount,
commission and other item constituting compensation, any discount, commission or
concession allowed or reallowed or paid to any dealer, and the proposed selling
price to the public.
-21-
DESCRIPTION
OF SECURITIES
Common
Stock
The total
number of authorized shares of the Company's common stock is 750,000,000 shares,
$0.001 par value per share.
Each
share of Vertex common stock is entitled to equal dividends and distributions
per share with respect to the common stock when, as and if declared by Vertex's
board of directors. No holder of any shares of Vertex common stock has a
preemptive right to subscribe for any Vertex security, nor are any shares of
Vertex common stock subject to redemption or convertible into other securities.
Upon liquidation, dissolution or winding-up of Vertex, and after payment of
creditors and preferred shareholders of Vertex, if any, the assets of Vertex
will be divided pro rata on a share-for-share basis among the holders of Vertex
common stock. Each share of Vertex common stock is entitled to one vote, except
with respect to the election of directors. Shares of Vertex common stock do not
possess any rights in respect of cumulative voting.
Preferred
Stock
The total
number of "
blank
check
" authorized shares of Vertex preferred stock is 50,000,000 shares,
$0.001 par value per share. The total number of authorized shares of Vertex's
Series A Convertible Preferred Stock ("
Vertex Series A
Preferred
") is 5,000,000.
Vertex
Series A Preferred
Holders
of outstanding shares of Vertex Series A Preferred are entitled to receive
dividends, when, as, and if declared by Vertex's board of directors. No
dividends or similar distributions may be made on shares of capital stock or
securities junior to the Vertex Series A Preferred until dividends in the
same amount per share on the Vertex Series A preferred have been declared
and paid. In connection with a liquidation, winding-up, dissolution or sale of
Vertex, each share of Vertex Series A Preferred is entitled to receive
$1.49 prior to similar liquidation payments due on shares of Vertex common stock
or any other class of securities junior to the Vertex Series A Preferred.
Shares of Vertex Series A Preferred are not entitled to participate with
the holders of Vertex common stock with respect to the distribution of any
remaining assets of Vertex.
Each
share of Vertex Series A Preferred is entitled to that number of votes
equal to the number of whole shares of Vertex common stock into which it is
convertible. Generally, holders of Vertex common stock and Vertex Series A
Preferred vote together as a single class.
Shares of
Vertex Series A Preferred automatically convert into shares of Vertex
common stock on the earliest to occur of the following:
·
The
      affirmative vote or written consent of the holders of a majority of the
      then-outstanding shares of Vertex Series A
  Preferred;
·
If
      the closing market price of Vertex common stock averages at least $15.00
      per share over a period of 20 consecutive trading days and the daily
      trading volume averages at least 7,500 shares over such
      period;
·
If
      Vertex consummates an underwritten public offering of its securities at a
      price per share not less than $10.00 and for a total gross offering amount
      of at least $10 million; or
·
If
      a sale of Vertex occurs resulting in proceeds to the holders of Vertex
      Series A Preferred of a per share amount of at least
      $10.00.
·
Holders
      of Vertex Series A Preferred may not voluntarily convert their shares
      into Vertex common stock for at least one year following the issuance of
      the Vertex Series A Preferred. Thereafter, holders may convert their
      shares of Vertex Series A Preferred subject to the following
      conditions:
-22-
·
At
      any time following the one-year anniversary of the issuance of Vertex
      Series A Preferred, holders may convert only up to that number of
      shares such that, upon conversion, the aggregate beneficial ownership of
      Vertex common stock of any such holder does not exceed 4.99% of Vertex's
      common stock then outstanding; and
·
Prior
      to the three-year anniversary of the issuance of Vertex Series A
      Preferred, no holder may, in any given three-month period, convert more
      than that number of shares of Vertex Series A Preferred that equals
      5% of the total number of shares of Vertex Series A Preferred then
      beneficially owned by such holder.
Each
share of Vertex Series A Preferred converts into one share of Vertex common
stock, subject to adjustment.
Special
Voting Rights
The
holder of each share of Vertex Series A Preferred is entitled to that
number of votes equal to the number of whole shares of Vertex common stock into
which such holder's shares are convertible. In general, holders of Vertex common
stock and Vertex Series A Preferred vote together as a single class.
However, so long as at least 50% of the shares of the Vertex Series A
Preferred originally issued in the merger remain outstanding, holders of Vertex
Series A Preferred are entitled to elect one (1) member of Vertex's
five-person board of directors. Any director elected by holders of shares of
Vertex Series A Preferred may be removed during such director's term of
office, either with or without cause, only by the affirmative vote of at least
66-2/3% of the then outstanding shares of Vertex Series A
Preferred.
LEGAL MATTERS
The
validity of the shares of common stock will be passed upon for us by The Loev
Law Firm, PC, Bellaire, Texas.  David M. Loev, the Manager of The Loev
Law Firm, PC, beneficially owns Stock Options to purchase 10,000 shares of the
Company's common stock at an exercise price of $1.20 per share (the "
Loev
Options
").  Other than the Loev Options, The Loev Law Firm, PC,
does not own any interest, contingent or otherwise in the Company.
WHERE YOU
CAN FIND MORE INFORMATION
We
have filed a registration statement with the Commission on Form S-8 to register
the shares of our common stock being offered by this prospectus. This
prospectus, which is part of the registration statements, does not contain all
the information included in the registration statement. Some information has
been omitted in accordance with the rules and regulations of the Commission. For
further information, please refer to the registration statements and the
exhibits and schedules filed with them. In addition, we file annual, quarterly
and current reports, proxy statements and other information with the Commission.
You may read and copy any reports, statements or other information that we file
at the Commission's public reference facilities at 100 F Street, NE, Washington,
DC 20549. Please call the Commission at 1-800-SEC-0330 for further information
regarding the public reference facilities. The Commission maintains a website,
http://www.sec.gov, that contains reports, proxy statements and information
statements and other information regarding registrants that file electronically
with the Commission, including us. Our Commission filings are also available to
the public from commercial document retrieval services. Information contained on
our website should not be considered part of this prospectus.
You
may also request a copy of our filings at no cost by writing or telephoning us
at:  Vertex Energy, Inc., 1331 Gemini Street, Houston, Texas 77058,
Attention: Corporate Secretary (866) 660-8156.
-23-
INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE
The
Commission allows us to "
incorporate by
reference
" the information we file with them, which means that we can
disclose important information to you by referring you to those documents. The
information incorporated by reference is considered to be part of this
prospectus, and information that we file later with the Commission will
automatically update and supersede this information. We incorporate by reference
the documents listed below:
(a)
World
      Waste Technologies, Inc.'s (Vertex Energy, Inc.'s predecessor company
      ("
WWT
"))
      Annual Report on Form 10-K filed on March 31, 2009, for the fiscal year
      ended December 31, 2008, which includes audited financial statements as of
      and for the year ended December 31, 2008 (the "
Annual
Report
");
(b)
WWT's
      Report on Form 10-Q for the period ended March 31, 2009 and the Company's
      Report on Form 10-Q for the period ended June 30,
  2009;
(c)
WWT's
      and the Company's Current Reports on Form 8-K and 8-K/A, filed with the
      Commission on April 8, 2009, May 8, 2009, June 26, 2009 and July 31, 2009,
      to the extent filed, and not furnished, including any exhibits and
      attachments thereto (including, but not limited to the attached audited
      financial statements of Vertex Energy, Inc. (Formerly Vertex Holdings,
      L.P.'s assets, liabilities and operations related to certain divisions)
      for fiscal year ended December 31, 2008 and 2007, which are included as an
      Exhibit to the Company's Current Report on Form 8-K/A filed on June 26,
      2009); and
(d)
All
      other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act
      since the end of the fiscal year covered by the Annual Report referred to
      in (a) above.
All
documents subsequently filed by the Company pursuant to Sections 13(a), 13(c),
14 and 15(d) of the Securities Exchange Act of 1934, as amended, after the date
of filing this Registration Statement and prior to such time as the Company
files a post-effective amendment to this Registration Statement which indicates
that all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by
reference in this Registration Statement and to be a part hereof from the date
of filing of such documents.
Any
statement contained in a document incorporated or deemed to be incorporated
herein by reference shall be deemed to be modified or superseded for the purpose
of this Registration Statement to the extent that a statement contained herein
or in any subsequently filed document which is also, or is deemed to be,
incorporated herein by reference modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this Registration Statement.
We
will provide without charge to each person, including any beneficial owner, to
whom a copy of this prospectus is delivered a copy of any or all documents
incorporated by reference into this prospectus except the exhibits to such
documents (unless such exhibits are specifically incorporated by reference in
such documents). Requests for copies can be made by writing or telephoning us
at:
Vertex
Energy, Inc., 1331 Gemini Street, Houston, Texas 77058, Attention: Corporate
Secretary (866) 660-8156.
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION
FOR
SECURITIES ACT
LIABILITIES
Insofar as indemnification for liabilities arising under the Securities Act may
be permitted to our directors, officers or persons controlling us, we have been
advised that it is the Commission's opinion that such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable.
-24-
PART
II
INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF
DOCUMENTS BY REFERENCE
The
following documents filed with the Commission are incorporated by reference into
this Registration Statement and are made a part hereof:
(a)
World
      Waste Technologies, Inc.'s (Vertex Energy, Inc.'s predecessor company
      ("
WWT
"))
      Annual Report on Form 10-K filed on March 31, 2009, for the fiscal year
      ended December 31, 2008, which includes audited financial statements as of
      and for the year ended December 31, 2008 (the "
Annual
Report
");
(b)
WWT's
      Report on Form 10-Q for the period ended March 31, 2009 and the Company's
      Report on Form 10-Q for the period ended June 30,
  2009;
(c)
WWT's
      and the Company's Current Reports on Form 8-K and 8-K/A, filed with the
      Commission on April 8, 2009, May 8, 2009, June 26, 2009 and July 31, 2009,
      to the extent filed, and not furnished, including any exhibits and
      attachments thereto (including, but not limited to the attached audited
      financial statements of Vertex Energy, Inc. (Formerly Vertex Holdings,
      L.P.'s assets, liabilities and operations related to certain divisions)
      for fiscal year ended December 31, 2008 and 2007, which are included as an
      Exhibit to the Company's Current Report on Form 8-K/A filed on June 26,
      2009); and
(d)
All
      other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act
      since the end of the fiscal year covered by the Annual Report referred to
      in (a) above.
All
documents subsequently filed by the Company pursuant to Sections 13(a), 13(c),
14 and 15(d) of the Securities Exchange Act of 1934, as amended, after the date
of filing this Registration Statement and prior to such time as the Company
files a post-effective amendment to this Registration Statement which indicates
that all securities offered hereby have been sold or which deregisters all
securities then remaining unsold, shall be deemed to be incorporated by
reference in this Registration Statement and to be a part hereof from the date
of filing of such documents.
Any
statement contained in a document incorporated or deemed to be incorporated
herein by reference shall be deemed to be modified or superseded for the purpose
of this Registration Statement to the extent that a statement contained herein
or in any subsequently filed document which is also, or is deemed to be,
incorporated herein by reference modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this Registration Statement.
ITEM 4. DESCRIPTION OF
SECURITIES
Common
Stock
The total
number of authorized shares of the Company's common stock is 750,000,000 shares,
$0.001 par value per share.
Each
share of Vertex common stock is entitled to equal dividends and distributions
per share with respect to the common stock when, as and if declared by Vertex's
board of directors. No holder of any shares of Vertex common stock has a
preemptive right to subscribe for any Vertex security, nor are any shares of
Vertex common stock subject to redemption or convertible into other securities.
Upon liquidation, dissolution or winding-up of Vertex, and after payment of
creditors and preferred shareholders of Vertex, if any, the assets of Vertex
will be divided pro rata on a share-for-share basis among the holders of Vertex
common stock. Each share of Vertex common stock is entitled to one vote, except
with respect to the election of directors. Shares of Vertex common stock do not
possess any rights in respect of cumulative voting.
-25-
Preferred
Stock
The total
number of "
blank
check
" authorized shares of Vertex preferred stock is 50,000,000 shares,
$0.001 par value per share. The total number of authorized shares of Vertex's
Series A Convertible Preferred Stock ("
Vertex Series A
Preferred
") is 5,000,000.
Vertex
Series A Preferred
Holders
of outstanding shares of Vertex Series A Preferred are entitled to receive
dividends, when, as, and if declared by Vertex's board of directors. No
dividends or similar distributions may be made on shares of capital stock or
securities junior to the Vertex Series A Preferred until dividends in the
same amount per share on the Vertex Series A preferred have been declared
and paid. In connection with a liquidation, winding-up, dissolution or sale of
Vertex, each share of Vertex Series A Preferred is entitled to receive
$1.49 prior to similar liquidation payments due on shares of Vertex common stock
or any other class of securities junior to the Vertex Series A Preferred.
Shares of Vertex Series A Preferred are not entitled to participate with
the holders of Vertex common stock with respect to the distribution of any
remaining assets of Vertex.
Each
share of Vertex Series A Preferred is entitled to that number of votes
equal to the number of whole shares of Vertex common stock into which it is
convertible. Generally, holders of Vertex common stock and Vertex Series A
Preferred vote together as a single class.
Shares of
Vertex Series A Preferred automatically convert into shares of Vertex
common stock on the earliest to occur of the following:
·
The
      affirmative vote or written consent of the holders of a majority of the
      then-outstanding shares of Vertex Series A
  Preferred;
·
If
      the closing market price of Vertex common stock averages at least $15.00
      per share over a period of 20 consecutive trading days and the daily
      trading volume averages at least 7,500 shares over such
      period;
·
If
      Vertex consummates an underwritten public offering of its securities at a
      price per share not less than $10.00 and for a total gross offering amount
      of at least $10 million; or
·
If
      a sale of Vertex occurs resulting in proceeds to the holders of Vertex
      Series A Preferred of a per share amount of at least
      $10.00.
·
Holders
      of Vertex Series A Preferred may not voluntarily convert their shares
      into Vertex common stock for at least one year following the issuance of
      the Vertex Series A Preferred. Thereafter, holders may convert their
      shares of Vertex Series A Preferred subject to the following
      conditions:
·
At
      any time following the one-year anniversary of the issuance of Vertex
      Series A Preferred, holders may convert only up to that number of
      shares such that, upon conversion, the aggregate beneficial ownership of
      Vertex common stock of any such holder does not exceed 4.99% of Vertex's
      common stock then outstanding; and
·
Prior
      to the three-year anniversary of the issuance of Vertex Series A
      Preferred, no holder may, in any given three-month period, convert more
      than that number of shares of Vertex Series A Preferred that equals
      5% of the total number of shares of Vertex Series A Preferred then
      beneficially owned by such holder.
Each
share of Vertex Series A Preferred converts into one share of Vertex common
stock, subject to adjustment.
-26-
Special
Voting Rights
The
holder of each share of Vertex Series A Preferred is entitled to that
number of votes equal to the number of whole shares of Vertex common stock into
which such holder's shares are convertible. In general, holders of Vertex common
stock and Vertex Series A Preferred vote together as a single class.
However, so long as at least 50% of the shares of the Vertex Series A
Preferred originally issued in the merger remain outstanding, holders of Vertex
Series A Preferred are entitled to elect one (1) member of Vertex's
five-person board of directors. Any director elected by holders of shares of
Vertex Series A Preferred may be removed during such director's term of
office, either with or without cause, only by the affirmative vote of at least
66-2/3% of the then outstanding shares of Vertex Series A
Preferred.
ITEM 5. INTEREST OF NAMED
EXPERTS AND COUNSEL
David M.
Loev, Manager of The Loev Law Firm, PC, which has passed upon the validity of
the of the shares of common stock offered herein, beneficially owns options to
purchase 10,000 shares of the Company's common stock at an exercise price of
$1.20 per share, of which a total of ¼ of such options, or 2,500 options are
exercisable by Mr. Loev as of the date of this Form S-8 filing.
ITEM 6. INDEMNIFICATION OF
DIRECTORS AND OFFICERS
Section
78.037 of the Nevada Revised Statutes, or "
NRS,
" allows a
corporation, through its articles of incorporation, to limit or eliminate the
personal liability of directors and officers to the corporation and its
shareholders for damages for breach of fiduciary duty. However, this provision
excludes any limitation on liability for:
·
acts
      or omissions which involve intentional misconduct, fraud or a knowing
      violation of law; or
·
the
      payment of distributions in violation of Section 78.300 of the
      NRS.
Vertex's
articles of incorporation and bylaws provide that directors and officers are not
personally liable to the corporation or its shareholders for damages for breach
of fiduciary duty. Consistent with Nevada law, this provision, however, does not
eliminate or limit the liability of a director for acts or omissions not in good
faith or which involve intentional misconduct, fraud, or a knowing violation of
law, the payment of dividends in violation of NRS Section 78.300 or for any
receipt of an improper personal benefit.
Section
78.7502 of the NRS permits a corporation to indemnify any agent of the
corporation who was or is a party or is threatened to be made a party to any
proceeding (other than an action by or in the right of the corporation), against
expenses, judgments, fines, settlements, and other amounts incurred in
connection with the proceeding. Further, Section 78.7502 of the NRS provides
that a corporation must indemnify directors, officers, employees and agents
against expenses actually and reasonably incurred to the extent the person was
successful on the merits in defending the proceeding. In addition, Section
78.7502 of the NRS permits indemnification against expenses actually and
reasonably incurred in connection with the defense or settlement of the action
by or in the right of the corporation to obtain a judgment in its favor. A
corporation may not provide indemnification for any:
·
claim,
      issue or matter for which the person has been found liable to the
      corporation; or
·
amounts
      paid in settlement to the corporation, unless the court determines that
      the person is fairly and reasonably entitled to indemnity for the
      expenses.
Section
78.751 of the NRS provides that indemnification, unless ordered by a court, may
not be made to or on behalf of any director, officer, employee or agent if a
court establishes that the person's acts or omissions involved intentional
misconduct, fraud or a knowing violation of the law and were material to the
proceeding. In the case of a criminal proceeding, the person must have had no
reasonable cause to believe his or her conduct was unlawful. Section 78.752 of
the NRS permits a corporation to purchase and maintain insurance on behalf of
any person who is or was a director, officer, employee or agent of the
corporation for any liability and expenses whether or not the corporation has
the authority to indemnify the person for the liability and expenses. Vertex's
by-laws permit the foregoing indemnification. This indemnification is allowed
only if the person acted in good faith and in a manner the person believed to be
in the best interests of the corporation. The decision of whether
indemnification will be provided must be made by the shareholders, by the board
by a majority vote of a quorum consisting of directors who are not parties to
the proceeding (or a committee thereof), or by independent legal counsel in a
written opinion if ordered by a majority vote of a quorum of disinterested
directors or if a quorum of disinterested directors cannot be
obtained.
-27-
Insofar
as indemnification for liabilities arising under the Securities Act, may be
permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Commission such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable.
ITEM 7. EXEMPTION FROM
REGISTRATION CLAIMED
The
Company granted the stock options (the shares issuable in connection with the
exercise of which are being registered herein) to Directors, officers, employees
and/or consultants in reliance on the exemption under Rule 701 promulgated under
the Securities Act, as transactions by an issuer not involving a public offering
and under a written compensatory benefit plan and/or Section 4(2) of the
Securities Act, as the grants did not involve a public offering, the recipients
took the securities for investment and not resale and the Company took
appropriate measures to restrict transfer
ITEM 8.
EXHIBITS
Exhibit
Number
Description of
Exhibit
2.1(1)
Amendment
      No. 5, dated as of March 31, 2009, to Amended and Restated Agreement and
      Plan of Merger by and among World Waste Technologies, Inc., Vertex
      Holdings, L.P. (formerly Vertex Energy, L.P.), Vertex Energy, Inc., Vertex
      Merger Sub, LLC and Benjamin P.
Cowart.
3.1(2)
Articles
      of Incorporation (and amendments thereto) of Vertex Energy,
      Inc.
3.2(1)
Amended
      and Restated Certificate of Designation of Rights, Preferences and
      Privileges of Vertex Nevada, Inc.'s Series A Convertible Preferred
      Stock.
3.3(2)
Withdrawal
      of Designation of the Company's Series B Preferred
  Stock
3.4(2)
Bylaws
      of Vertex Energy, Inc.
4.1(2)
Vertex
      Energy, Inc., 2008 Stock Incentive
Plan
4.2(3)
Vertex
      Energy, Inc., 2009 Stock Incentive
Plan
5.1*
Opinion
      and consent of The Loev Law Firm, PC re: the legality of the shares being
      registered
23.1*
Consent
      of The Loev Law Firm, PC (included in Exhibit
  5.1)
23.2*
Consent
      of Stonefield Josephson, Inc.
23.3*
Consent
      of LBB & Associates Ltd., LLP
99.1(2)  Glossary
of Selected Terms
(1) Filed
as an exhibit to the registrant's Report on Form 8-K, filed with the Commission
on April 8, 2009, and incorporated herein by reference.
(2) Filed
as an exhibit to the registrant's Report on Form 8-K/A. filed with the
Commission on June 26, 2009, and incorporated herein by reference.
(3) Filed
as an exhibit to the registrant's Report on Form 8-K, filed with the Commission
on July 31, 2009, and incorporated herein by reference.
* Filed
herewith.
-28-
ITEM 9.
UNDERTAKINGS
(a)           The
Registrant hereby undertakes:
(1)           To
file, during any period in which offers or sells are being made, a
post-effective amendment to this registration statement to reflect any facts or
events arising after the effective date of this Registration Statement (or the
most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in this
Registration Statement contained in periodic reports filed with or furnished to
the Commission by the Company pursuant to section 13 or section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in this
Registration Statement and to include any material information with respect to
the plan of distribution not previously disclosed in the registration statement
or any material change to such information in the registration
statement.
(2)           That,
for the purpose of determining liability under the Securities Act of 1933, each
post-effective amendment shall be treated as a new registration statement of the
securities offered, and the offering of the securities at that time shall be
deemed to be the initial bona fide offering thereof.
(3)           To
file a post-effective amendment to remove from registration any of the
securities being registered that remain unsold at the end of the
offering.
(b)           The
undersigned Registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the Registrant's
annual report pursuant to Section 13(a) or Section 15(d) of the Securities
Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of
1934) that is incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
(c)           Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may
be permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
-29-
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the Registrant certifies that
it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this registration statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Houston, Texas on the 2nd day of October 2009.
VERTEX ENERGY, INC.
By: /s/ Benjamin P.
  Cowart
Benjamin
      P. Cowart
Chief
      Executive Officer
(Principal
      Executive Officer)
By: /s/ Christopher
  Stratton
Christopher
      Stratton
Chief
      Financial Officer
(Principal
      Accounting
Officer)
Each
person whose signature appears below hereby constitutes and appoints Benjamin P.
Cowart as his true and lawful attorney-in-fact and agent, with full power of
substitution and revocation, to sign on his behalf, individually and in each
capacity stated below, all amendments and post-effective amendments to this
Registration Statement and to file the same, with all exhibits thereto and any
other documents in connection therewith, with the Securities and Exchange
Commission under the Securities Act of 1933, granting unto each such
attorney-in-fact and agent full power and authority to do and perform each and
every act and thing requisite and necessary to be done, as fully to all intents
and purposes as such person might or could do in person, hereby ratifying and
confirming each act that said attorney-in-fact and agent may lawfully do or
cause to be done by virtue thereof.
Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement
has been signed by the following persons in the capacities and on the dates
stated.
By:
/s/
      Benjamin P. Cowart
By:
/s/
      Christopher Stratton
Benjamin
      P. Cowart
Chief
      Executive Officer
(Principal
      Executive Officer)
and
      Chairman
Christopher
      Stratton
Chief
      Financial Officer,
(Principal
      Accounting Officer)
Date:
October
      2, 2009
Date:
October
      2, 2009
By:
/
s/ Ingram
      Lee
By:
/s/
      David Phillips
Ingram
      Lee
Director
David
      Phillips
Director
Date:
October
      2, 2009
Date:
October
      2, 2009
-30-