Item 1.02. Termination of a Material Definitive Agreement.

As previously reported in the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 6, 2020 (the "May 2020 Form 8-K"), by Vertex Energy, Inc. ("we", "us" or the "Company"), on May 4, 2020, the Company applied for a loan (the "PPP Loan") from Texas Citizens Bank, NA (the "Lender") in the principal amount of $4.222 million, pursuant to the Paycheck Protection Program (the "PPP"), which was enacted on March 27, 2020. On May 5, 2020, the Company received the PPP Loan funds. The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") and is administered by the U.S. Small Business Administration ("SBA").

Under the terms of the CARES Act, PPP loan recipients can apply for, and the SBA can grant forgiveness of, all or a portion of loans made under the PPP if the recipients use the PPP loan proceeds for eligible purposes, including payroll costs, mortgage interest, rent or utility costs and meet other requirements regarding, among other things, the maintenance of employment and compensation levels. The Company used the PPP Loan proceeds for qualifying expenses and applied for forgiveness of the PPP Loan in accordance with the terms of the CARES Act.

On June 22, 2021, the Company received a notification from the Lender that the SBA approved the Company's PPP Loan forgiveness application for the entire PPP Loan balance of $4.222 million and accrued interest and that the remaining PPP Loan balance is zero. The forgiveness of the PPP Loan will be recognized during the Company's second quarter ending June 30, 2021.

The disclosure in Item 1.01of the May 2020 Form 8-K is incorporated into this Item 1.02 by reference.

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