Document:

Exhibit 10.5

 

PATENT AND INTELLECTUAL PROPERTY LICENSE
AGREEMENT

 

This Patent and Intellectual
Property License Agreement (the “Agreement”) is hereby entered into effective as of July 22, 2020 (the “Effective
Date”), by and between, Vivakor, Inc., a Nevada corporation (“Vivakor” or the “Licensee”)
on the one hand, and CSS Nanotech, Inc., a Delaware corporation (“CSSN” or the “Licensor”).
The Licensee and the Licensor may each be referred to herein as a “Party” and together as the “Parties.”

 

 I. RECITALS

 

A.       WHEREAS,
Licensor is the owner of certain patents and intellectual property related to three-dimensional carbon nanotube materials known
as “Nanosponge”, and its related microwave absorption technology having applications for the Vivakor Hydrocarbon Extraction
Technology (VHET) of oil from soil matrixes containing hydrocarbons as well as other natural resources, as described in DEFINITIONS,
hereto (the “Nanosponge Technology”);

 

B.       WHEREAS,
the Licensee is a company in the oil extraction/oil remediation business;

 

C.       WHEREAS,
the Parties entered into a Joint Venture Formation Agreement dated August 17, 2017, under which the Parties were going to form
a joint venture, with CSSN contributing licenses, know-how and manpower for the Nanosponge Technology and other consideration,
and Vivakor contributing Five Million (5,000,000) shares of its preferred stock and other consideration (the “JV Agreement”);

 

D.       WHEREAS,
the Parties now desire to terminate the JV Agreement, and enter into the instant License Agreement.

 

E.       WHEREAS,
the instant License Agreement shall set forth the relationship between the Parties going forward; and

 

F.       The
Parties desire that Licensor grant an exclusive license for applications and implementations involving the Nanosponge Technology,
limited to the Licensed Field described elsewhere herein, to Licensee for Licensee to use and develop as it sees fit in its sole
discretion in exchange for 5,000,000 shares of Series C-1 Preferred Stock (the “Preferred Stock”), and Vivakor’s
previous payment to CSSN of Seventeen Thousand One Hundred Two Dollars and Sixty-One Cents ($17,102.61), as set forth herein.

 

G.       WHEREAS,
The Parties agree that there would be sale restrictions on any Vivakor Common Stock CSSN receives as a result of the conversion
of the Preferred Stock, as delineated herein;

 

NOW, THEREFORE, in
consideration of the promises and agreements set forth below and the other considerations cited herein, the Parties agree as follows.

 

 II. DEFINITIONS

 

As used in this Agreement,
the following terms shall be defined as set forth below:

 

2.1“Confidential Information”
shall mean any and all information disclosed by a Party (the “Disclosing Party”) to the other party (the “Recipient”)
hereunder that is clearly marked or identified as “confidential,” such as proprietary information relating to the Disclosing
Party’s technology (including the Intellectual Property and any associated knowhow), products, processes, business information,
or intellectual property rights. “Confidential Information” further includes the terms and conditions of this Agreement
not otherwise made public by agreement of the parties as well as information arising or disclosed pursuant to this Agreement. Notwithstanding,
CSSN may disclose this Agreement for the sake of revealing to a strategic third party the limitations of the Licensed Field description
of Nanosponge Technology under this Agreement, so not to hinder CSSN’s independent potential business dealings with other
strategic third parties outside the Licensed Field of NanoSponge Technology described elsewhere herein. Notwithstanding the foregoing,
information will not be considered “Confidential Information” to the extent the Recipient can demonstrate by written
record or other suitable physical evidence including electronic written documents that:

 

 

 

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		a)	such specific information was lawfully in the Recipient’s possession or control prior to
the time such information was disclosed to the Recipient by the Disclosing Party;

		b)	such specific information was independently developed by one or more employees or other agents
of the Recipient without reference to such Confidential Information;

		c)	such specific information was lawfully obtained by the Recipient from a third party under no obligation
of confidentiality to the Disclosing Party; or

		d)	such specific information was, at the time it was disclosed or obtained by the Recipient, or thereafter
became, publicly known otherwise than through a breach of the Recipient’s obligations hereunder.

 

2.2“Improvements”
shall mean inventions or other improvements which relate to or are based on the Inventions (i) which are within the scope of the
then existing Intellectual Property which is solely owned by CSSN; and (ii) which pertain uniquely to the Licensed Field. An Improvement
shall be within the scope of a patent in the Intellectual Property if covered by a claim or the description of the invention, either
literally or under the doctrine of equivalents.

 

2.3“Intellectual Property”
shall mean:

 

		a)	all issued patents, continuations, continuations-in-part, divisionals, and other patents or applications
derived from the Nanosponge Technology which are solely owned by CSSN, and which pertain to the Licensed Field;

		b)	all related knowhow and trade secrets relating to the Nanosponge Technology; and

		c)	all other trade secrets and intellectual property information related to the Nanosponge Technology
which pertains to the Licensed Field.

 

2.4“Licensed Products”
shall mean any product, device, process, method, apparatus, kit or component part, or any part thereof, or any subject matter,
where manufacture, use, or sale is covered, in whole or in part, either literally or under the doctrine of equivalents, by any
issued or pending claim of one or more of the Intellectual Property pending or issued in the country of manufacture, use, or sale,
within the Licensed Field.

 

2.5"New Invention(s)"
shall mean an invention conceived or reduced to practice by Licensees or jointly by Licensees and Licensor, where Licensee materially
contributes to the conception and/or reduction to practice of the invention, which relates to or is based on the subject matter
of the Intellectual Property or based on work developed under the direction of Licensor, and which is within the Licensed Field.

 

2.6“Party” (and
collectively, “Parties”) shall mean either or collectively the Licensor and/or Licensees, and all associated affiliates
engaged in business related to the Licensed Field. Affiliates shall include a) any officer, director, and/or legal entity directly
or indirectly controlled by, or controlling, a Party, b) an entity of which fifty percent or more of the voting stock is controlled
or owned directly by a Party; c) an entity which owns fifty percent or more of the voting stock of a Party; and e) an entity the
majority ownership of which is directly or indirectly common to the majority ownership of a Party.

 

2.7“Sublicensee”
shall mean third parties to whom the Licensees sublicenses the Intellectual Property pursuant to the terms of this Agreement to
develop, manufacture, have manufactured, use, and sell the Licensed Products.

 

2.8“Net Sublicensee
Income” shall mean compensation or consideration of any kind received by Licensees from a Sublicensee, including without
limitation cash, upfront fees, milestone payments, marketable securities, stock or shares, on-going royalties, and any tangible
or intangible assets, less fifteen percent (15%) to assist in covering related internal costs and overhead expenses.

 

2.9“Vivakor Hydrocarbon
Extraction Technology (VHET)” shall mean the proprietary solvent based extraction process for the separation of petroleum
out of oil sands and results in three outputs: the oil, “clean” sands, and the solvent used for the extraction process.

 

 

 

 

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2.10
“Nanosponge Technology” shall mean all Intellectual Property related to macroscale three-dimensional heteroatom
doped carbon nanotube materials produced by chemical vapor deposition synthesis of carbon nanotubes (aka Nanosponge), and its
application related to microwave absorbing heat exchange technology including but not limited to Patent No.: 10294133 Titled
“METHODS OF SYNTHESIZING THREE-DIMENSIONAL HETEROATOM-DOPED CARBON NANOTUBE MACRO MATERIALS AND COMPOSITIONS
THEREOF”, but limited to the Licensed Field. Nanosponge Technology shall also include the patent family related to U.S.
Publication No. 20190387587, entitled “Dielectric Heating of Three-Dimensional Carbon Nanostructured Porous Foams as a
Heat Exchanger for Volumetric Heating of Flowing Fluids,” and related PCT/US16/63705, but limited to the Licensed
Field.

 

2.11
“Licensed Field” shall mean the limited field of use of Nanosponge Technology for the VHET process to extract
petroleum (oil) from soil (sand) matrixes containing hydrocarbons as well as other natural resources including the on-site
“cracking” of the said extracted heavy oils into lighter oils.

 

 III. grant of license

 

3.1Grant. Subject
to the terms and conditions of this Agreement, Licensor grants and the Licensees hereby accept a worldwide, exclusive, non-transferable,
irrevocable license in the Intellectual Property to develop, manufacture, have manufactured, use, market, import, have imported,
offer for sale, and sell the Licensed Products within the License Field. This license grant shall be for the lifetime of the Intellectual
Property, as determined on a patent-by-patent basis, i.e., the license grant, and any obligations pertaining thereto, with respect
to each patent within the Intellectual Property, shall expire upon the expiration of each patent.

 

3.2Sublicense. The
Licensee shall have the right to sublicense the Intellectual Property to third parties (hereinafter “Sublicensee”),
without the consent of the Licensor. The sublicense terms shall be commercially reasonable when compared to similar transactions
conducted at arms length, and no sublicense shall contain the right to grant further sublicenses without the prior written consent
of the Licensee. Any compensation, upfront fee and/or money received by Licensee in exchange for such sublicense shall belong to
Licensee, subject to the provisions of Section 4.2.

 

3.3Retention of Rights.
Licensor shall retain the nontransferable right to make, use and practice the Intellectual Property within the Licensed Field for
his own noncommercial purposes. The license granted hereunder shall not be construed to confer any rights upon Licensee by implication,
estoppel or otherwise as to any technology or intellectual property other than the Intellectual Property.

 

3.4Third Party Licenses.
The parties recognize that Licensee may encounter patents held by third parties, and that licenses between Licensor or Licensee
and such third parties may be necessary in order to enable the Licensee to develop, make or market certain Licensed Products. In
that event, the Licensee has the right to enter into licensing agreements with such third parties, as necessary.

 

3.5Non-Compete. Parties
understand that the licensed Intellectual Property has applications outside of the Licensed Field granted under this Agreement.
Licensee will not obstruct and/or compete with the Licensor in the development, manufacture and/or sale of any Licensed Product
outside of the Licensed Field (scope) described as the NanoSponge Technology in this Agreement. Licensee agrees that manufacture,
use, sale, offer for sale, or importation of nanosponge materials claimed in the Intellectual Property outside of the Licensed
Field described under this Agreement is prohibited during the life of any issued patent within the Intellectual Property in any
territory unless there is written consent or a grant from Licensor to otherwise do so. Notwithstanding the foregoing, Licensee
shall remain obligated to maintain in confidence all trade secrets to which it was exposed during the term of the Agreement in
the event the Agreement is terminated, and to not exploit those trade secrets for commercial gain outside the Licensed Field until
the trade secrets are no longer secret, by virtue of being publicly disclosed by a third party not directly or indirectly receiving
the trade secrets from the Licensee.

 

 

 

 

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IV.
payments FOR THE LICENSE

 

4.1Payments. The
full payment due to the Licensor for the License to the Intellectual Property to Licensee is the Preferred Stock and cash payment
referred to herein, both of which have already been issued to Licensor. As previously agreed by the Parties, the Preferred Stock
will convert to Vivakor Common Stock on a 1-for-1 basis, subject to any stock splits, combinations, or recapitalizations that occur
after the date of issuance. Additionally, any Vivakor common stock received upon the conversion of the Preferred Stock will be
subject to the following sale restriction, and any certificates representing the Preferred Stock or Vivakor Common Stock received
upon the conversion of the Preferred Stock contain the following legend:

 

After the date of conversion
to Common Stock, in any 90 day period, the holder of the Common Stock may only sell a number of shares of Common Stock equal to
ten percent (10%) of the ten-day average trade volume of Vivakor’s Common Stock as reported on its trading market immediately
preceding the sale date.

 

4.2Sublicense Compensation.
Licensor will be compensated twenty percent (20%) of any Net Sublicensee Income received by Licensee from any Sublicensee.

 

4.3Patent
Reimbursements. Licensor will be reimbursed by Licensee for prior patent expenses that relate to the Intellectual Property,
having a total reimbursement amount of twenty-seven thousand seven hundred forty dollars and twenty-six cents ($27,740.26), that
Licensee agrees to pay toward patent expenses no later than December 31, 2020. Licensee will cover ongoing patent expenses that
relate to any New Invention(s), or any Improvements of Intellectual Property or any other patent protection of Nanosponge Technology
solely in the Licensed Field.

 

 V. Due Diligence in ComMercialization

 

5.1Reasonable Efforts.
Licensee agrees that it shall use reasonable efforts and diligently endeavor to achieve the development, regulatory approval, and
commercialization of the Licensed Products. Licensee may conduct such efforts itself or through a Sublicensee.

 

5.2Termination. If,
after a period of twenty years from the Effective Date, the Licensee has not commercialized a Licensed Product, Licensor shall
have the right, at its option to: (a) terminate the Agreement; or, (b) convert any or all of the rights granted to Licensees from
exclusive to non-exclusive.

 

5.3Status Reports.
Licensees shall provide periodic Status Reports to Licensor, at least quarterly, indicating progress and problems to date in commercialization
of the Licensed Products. Such Status Reports shall also include a forecast and schedule of major events required to market the
Licensed Products. Licensor shall treat all such information as confidential.

 

 

 VI. Patent Prosecution

 

6.1Patent Prosecution
Expenses. Beginning from the Effective Date and during the term of this Agreement and subject to Section 6.7, Licensor shall
diligently prosecute and maintain, at the Licensee’s expense, any United States and foreign patents comprising the Intellectual
Property, using patent counsel of the Licensee’s choice that is reasonably acceptable to Licensor.

 

6.2Patent Prosecution
Cooperation. The Parties agree to fully cooperate with one another and to keep each other fully informed regarding the preparation,
filing, and prosecution of all patent applications which Licensor may file and prosecute pursuant to this Agreement. Licensee will
also execute and deliver all documents which Licensor may deem necessary or desirable for the Intellectual Property. Licensor will
also promptly provide Licensee with copies of all documents received from any patent office, so as to keep Licensee informed of
the continuing prosecution. The Parties agree that representatives of each Party shall meet periodically to review and keep one
another fully informed as to the status of all Intellectual Property and all patent-related matters. Such representatives may meet
in person or telephonically, as mutually agreed upon by the Parties.

 

6.3Protection of Licensed
Products. Licensor will use reasonable efforts to amend any patent application to include claims reasonably requested by the
Licensee to protect the Licensed Products.

 

 

 

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6.4Foreign Protection
of Licensed Products. The Licensee will have the right to request that Licensor obtain or maintain patent protection on the
Intellectual Property in foreign countries if possible or available. Licensee shall notify Licensor in writing of the countries
in which it desires to obtain or maintain foreign patents not less than sixty (60) days prior to the deadline for any payment,
filing, or action to be taken in connection therewith, and Licensee shall be responsible for all associated costs. Upon receipt
of such request, Licensor will undertake the actions described in Section 6 with respect to each foreign country requested by Licensees
and shall timely file any applicable patent applications. Licensee will be responsible for all costs associated with such a request.

 

6.5Patent Marking.
The Licensee and its Sublicensees, if any, shall mark all Licensed Products sold by it with appropriate patent markings indicating
that the Licensed Products are protected by one or more of patents in the Intellectual Property, if applicable. All Licensed Products
shipped to, imported into, sold or offered for sale in other countries shall be marked in such a manner as to conform to the patent
laws and practices of the country of manufacture or sale.

 

6.6Decision Not To file.
If Licensor decides to take steps which would result in either not filing a patent application or the abandonment of a patent or
patent application, it shall promptly give notice to Licensee of such decision, which notice shall in no event be less than thirty
(30) days prior to the next deadline for payment, filing, or any other related action. Further, Licensor shall provide Licensee
an opportunity to assume responsibility for such patent application or patent, including, but not limited to, the assignment of
the patent to Licensee if requested by Licensee. To the extent there is a patent family, and Licensor’s decision to abandon
relates to one or more patents and/or patent applications within the family, any assignment will be limited to those patents and/or
patent applications that Licensor is interested in abandoning, but will not extend to those patents and/or patent applications
in the patent family that Licensor wishes to maintain.

 

6.7Decision Not To pay.
At any time, upon providing sixty (60) days written notice, Licensee may discontinue making payments with regard to any patent
application(s) and/or patent(s) within the Intellectual Property, and in such case, Licensee shall have no further rights under
this Agreement and this license shall terminate with respect to those patent applications and/or patents.

 

6.8Patent Extension.
With respect to any issued patent in the Intellectual Property, Licensor will designate Licensee as its agent for obtaining an
extension of such patent or governmental equivalent which extends the exclusivity of any of the patent subject matter where available
in any country in the world, or if not feasible, at Licensee’s option, permit Licensee to file in Licensor’s name or
diligently obtain such extension for the Licensee, or its Sublicensees at Licensee’s expense. Licensor agrees to provide
reasonable assistance, at no out-of-pocket expense, to facilitate Licensees’ efforts to obtain any extension. If for any
reason the Licensee fails to exercise diligent efforts to obtain any extension or determine that it will not seek such extension,
the Licensee shall provide reasonable assistance, at no out-of-pocket expense, to facilitate Licensor’s efforts to obtain
any such extension.

 

 VII. Infringement

 

7.1Notice of Infringement.
The Parties shall promptly give written notice to each other of any apparent infringement discovered with respect to any patent
within or issuing from the Intellectual Property. Such notice shall set forth the known facts of the apparent infringement in reasonable
detail. Upon written notice to Licensor, the Licensee shall have the first right, but not the obligation, to cause the Licensor
to bring any legal action with respect to such apparent infringement at its own expense and for its own benefit. In such event,
Licensor agrees to cooperate with the Licensee and to file such action as a party plaintiff if requested to do so by the Licensee.
The Licensee shall reimburse Licensor for all verified out-of-pocket expenses incurred by Licensor in providing such assistance,
including attorneys’ fees, expenses, and expert witness fees incurred by Licensor, and pay an up-front retainer if such is
required by patent litigation counsel. To ensure that no rights of Licensor are compromised in any such action, the Licensor reserves
the right to not settle any such claim or action, or enter into any settlement agreement that admits that any third party product
does not infringe the Intellectual Property or that any patent in the Intellectual Property is invalid or enforceable without Licensor’s
prior written consent, which consent shall not be unreasonably withheld. If there is a recovery in such action (including a recovery
as a result of a settlement), after recovery of all direct out-of-pocket expenses incurred by the Licensee and Licensor in connection
with the action, the Licensee and Licensor shall be entitled to such recovery as follows: 100% to Licensee for any recovery based
on any infringement within the Licensed Field of Use and 100% to Licensor for any recovery based on any infringement outside the
Licensed Field of Use. In the event a determination cannot be made if the recovery is within or outside the Licensed Field of Use,
the Licensor and Licensee will split the recovery 50/50, with the parties taking into consideration whether Licensor would have
been entitled to any cash or cash equivalent received from any alleged infringer equivalent to the royalties which Licensor would
have received if such alleged infringer had been a Sublicensee.

 

 

 

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7.2Infringement of Third-Party
Rights. If the Licensee or Licensor receive notice of a claim or action by a third party alleging infringement of such third
party’s rights in connection with the development, manufacture, use, marketing, or sale of a Licensed Product by the Licensee
or its Sublicensees, the Licensee shall have the right to conduct the legal defense, but shall not enter into any disposition with
respect thereto, or enter into any settlement agreement that admits that any Licensed Product infringes any third party right without
Licensor’s prior written consent to such disposition, which consent shall not be unreasonably withheld. All costs of the
Licensee’s defense, and any damages awarded or amounts paid in settlement in any such claim shall be the sole responsibility
of the Licensee. Licensor shall cooperate with the Licensee if requested by the Licensee in its defense of such infringement claim
or action, provided that Licensee shall reimburse Licensor for all out-of-pocket expenses, including attorneys’ fees, expenses,
and expert witness fees incurred by Licensor in providing such cooperation.

 

7.3Indemnification.
Subject to the notification provisions of Section 7 below, the Licensee shall defend and hold harmless Licensor against a third
party infringement claim or action which results from the development, manufacture, use, marketing, or sale of a Licensed Product
by the Licensee or their Sublicensees, and indemnify Licensor against the cost of such defense undertaken by the Licensee, including
attorneys’ fees and all other legal expenses, costs, expert witness fees, and damages awarded or amounts paid in settlement
in any such claim or action. Such indemnification shall include attorneys’ fees for independent counsel retained by Licensor
if Licensor deems such separate independent counsel to be necessary as a result of conflicts of interest with the Licensees, but
only in connection with services rendered in connection with matters with respect to which the parties have adverse interests.
The Licensee’s indemnification shall not include indemnification to the extent to which such infringement is directly caused
by Licensor prior to the date of this Agreement.

 

7.4Notification.
In the event that any claim is asserted against Licensor or the Licensee (or any of its respective officers, directors, trustees,
employees, agents, or representatives), or if any such person is made a party defendant in any action involving a matter which
is the subject of Licensor’s indemnification as set forth above, or if either Party becomes aware of a claim or patent which
might provide the basis for a third party’s claim of infringement against Licensee for the development, manufacture, use,
marketing, or sale of a Licensed Product, then such Party shall give written notice to the other within thirty (30) days of having
learned of such, or within ten (10) days of the receipt of a written complaint or formal pleading regarding the same.

 

 VIII. Term and Termination of agreement

 

8.1Term. The term
of the license granted under this Agreement shall continue for the life of the Intellectual Property, unless terminated sooner
under the provisions of this Agreement. For the patents that are part of the Intellectual Property, such life shall be determined
on a patent-by-patent basis based on the expiration date of each patent within the Intellectual Property. Notwithstanding the foregoing,
any royalties due based on a sublicense shall only be due, with respect to activities taking place in a given country, during the
period of time in which a valid patent in the given country is still in force and effect.

 

8.2Termination by Licensor.
In addition to any other rights of termination set forth in this Agreement including Section 5.2, and subject to any applicable
cure periods prescribed herein, Licensor may in his sole discretion terminate this Agreement in the event that:

 

		a)	The Licensee commits a breach of any material obligation of this Agreement or related Party agreement
which is not cured (if capable of being cured) within thirty (30) days after receiving notice of such, or within such extension
of this thirty day period as the parties shall agree in writing; or,

 

		b)	A petition in bankruptcy is filed against the Licensee and is consented to, acquiesced, and remains
undismissed for ninety (90) days; or Licensee makes a general assignment for the benefit of creditors, or a receiver is appointed
for the Licensee, and the Licensee do not return to solvency before the expiration of said sixty (60) day period set by the notice,
in which event such termination shall be effective sixty (60) days after written notice to the Licensee.

 

 

 

 

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8.3Termination by Licensee.
The Licensee shall have the option to terminate this Agreement upon providing sixty (60) days’ written notice to Licensor.
Licensee shall not recover any prior payments, whether in cash or stock, in the event of termination.

 

8.4Obligations on
Termination.

 

8.4.1 Rights
Termination. Upon termination of this Agreement and except as otherwise expressly provided herein, all of the rights and
licenses granted to Licensee under the terms of this Agreement shall terminate. The Licensee shall assign any sublicenses
granted under this Agreement to Licensor. All rights licensed or transferred by Licensor to the Licensee hereunder which are
subject to termination shall revert to Licensor, and the Licensee agree to execute all instruments reasonably necessary and
desirable to revest said rights in Licensor. Upon termination of the agreement based on Licensee’s bankruptcy or
dissolution, all patent rights outlined in 10.1 herein shall revert to Licensor.

 

8.4.2 Regulatory
Records. Upon termination, the Licensees shall transfer ownership and possession of all records and documents of Licensee
filed with regulatory authorities relating to the Licensed Products.

 

8.4.3 Return
of Confidential Material. Upon termination, the Licensee and their Sublicensees shall return all Confidential
Information, including any knowhow relating to the Intellectual Property, transferred to the Licensee by Licensor. The
Licensee and their Sublicensees shall maintain confidentiality and not use any such information for a period of five (5)
years after termination of this Agreement.

 

8.4.4 Unsold
Inventory. In the event this Agreement is terminated for any reason, the Licensee and their Sublicensees shall have the right
to sell or otherwise dispose of their stock of any Licensed Products, subject to the obligation of the Licensee to pay Licensor
that portion of any payments received from Sublicensees as provided in Section 4 of this Agreement. The Licensee shall immediately
discontinue any additional production of the Licensed Products.

 

8.4.5 Sublicensees.
In the event that the license granted to the Licensee under this Agreement is terminated, any sublicenses granted to Sublicensees
shall remain in full force and effect, provided that the Sublicensee is not then in breach of its sublicense agreement, and the
Sublicensee agrees to be bound to Licensor as a licensee under the terms and conditions of the agreement, in which case Licensor
and Sublicensee shall enter into appropriate agreements or amendments to the sublicense agreements to substitute Licensor for the
Licensee as the licensor.

 

8.4.6 Other
Rights. Termination of this Agreement for any reason shall not release any Party hereto from any liability which, at the time
of such termination, has already accrued to the other party or which is attributable to a period prior to such termination, nor
preclude either party from pursuing any rights and remedies it may have hereunder or at law or in equity which accrued or are based
upon any event occurring prior to such termination, including, without limitation, Licensee’s obligation to pay all royalties
or other payments and/or reimbursements specified in Section 4. The rights provided in. this Section shall be in addition and without
prejudice to any other rights which the parties may have with respect to any breach or violations of the provisions of this Agreement.

 

 IX. Indemnification and Warranties

 

9.1Disclaimers.
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, LICENSOR DISCLAIMS ALL WARRANTIES WHATSOEVER, WITH RESPECT TO THE Intellectual
Property, EITHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES AS TO THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,
VALIDITY OF PATENT CLAIMS (ISSUED OR PENDING), OR THAT THE MANUFACTURE, USE OR SALE OF THE LICENSED PRODUCT(S) AND USE OF THE INTELLECTUAL
PROPERTY WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY
SPECIAL, INDIRECT, INCIDENTAL. OR CONSEQUENTIAL LOSSES OR DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. LICENSEES TAKES THE Intellectual Property “AS-IS,” “WITH
ALL FAULTS,” AND “WITH ALL DEFECTS” AND EXPRESSLY WAIVES ALL RIGHTS TO MAKE ANY CLAIM WHATSOEVER AGAINST LICENSOR
FOR WARRANTY OF ANY KIND RELATING TO THE Intellectual Property SUBJECT TO THE REPRESENTATIONS
MADE HEREIN. IN NO CASE SHALL LICENSOR’S LIABILITY FOR DAMAGES OF ANY TYPE EXCEED THE TOTAL ROYALTIES WHICH HAVE ACTUALLY
BEEN PAID TO LICENSOR BY LICENSEES AS OF THE DATE OF FILING OF THE ACTION AGAINST LICENSOR WHICH RESULTS IN A SETTLEMENT OR AWARD
OF DAMAGES.

 

 

 

 

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9.2Indemnity.
With the exception of infringement claims or actions covered by Section 7, Licensee shall defend, indemnify, and hold harmless
Licensor from and against any and all liabilities, claims, suits, damages, and expenses of any nature related to a third party
claim in connection with (i) the use by the Licensee or their Sublicensees of the Intellectual Property; (ii) the development,
manufacture, use, marketing, sale, or other disposition of any Licensed Products by the Licensee or their Sublicensees, or any
statement or breach of any representation or warranty made by the Licensee or their Sublicensees with respect thereto; or (iii)
resulting from or arising out of the exercise by Licensee of this license or any sublicense granted by Licensee pursuant to this
Agreement. In the event of such indemnification, Licensor shall reasonably cooperate with the Licensee in defending any such claims.
Licensor shall be entitled to receive information regarding the status of any such matter, and shall be entitled to retain counsel
on its own behalf at Licensee’s expense, in addition to counsel retained by Licensee to defend Licensor, if Licensor is named
a party, and if Licensor deems such separate independent counsel to be necessary as a result of conflicts of interest with the
Licensee, or if Licensor is not satisfied with the defense provided by the Licensee for any reason.

 

9.3Insurance.
The Licensee, at its sole cost and expense, shall purchase and maintain in effect and shall require their Sublicensees to purchase
and maintain in effect comprehensive or commercial form general liability insurance (contractual liability and products liability
included on a world-wide basis) insuring its and their activities in connection with developing, testing, marketing approvals,
and covering all claims with respect to any Licensed Products manufactured or sold within the term of any license granted hereunder,
and professional liability (errors and omissions), and workers’ compensation as required by law and automobile liability,
which policies shall, if required by the Licensor in writing: (i) be in such form of coverage and written by such company licensed
to conduct business in the State of California as Licensor shall reasonably approve, (ii) provide that such policy is primary
and not excess or contributory with regard to other insurance Licensor may have, and (iii) provide at least thirty (30) days’
notice to Licensor of cancellation. In the event the Licensee cannot obtain such insurance, or cannot obtain such insurance at
a reasonable price, it shall obtain insurance in an amount to reasonable to cover the Licensee in the event of a covered event,
based on the then-current operations of the company. Such insurance shall be written to cover claims incurred, discovered, manifested
or made during or after expiration of this Agreement. The Licensee shall have this insurance in place prior to beginning development
on a Licensed Product and at such time will furnish a certificate of such insurance to Licensor within thirty (30) days thereafter.
The Licensee shall obtain such additional insurance coverage as shall be reasonably requested by Licensor, and reasonably agreed
to by the parties, provided that Licensor shall not request changes in such coverage more frequently than annually.

 

The Licensee expressly waives
any right of subrogation that it may have against Licensor resulting from any liabilities, claims, suits, damages, and expenses
of any nature for which Licensees has agreed to indemnify Licensor or hold Licensor harmless under this Section.

 

9.4Representations
and Warranties of Licensor. Licensor represents, warrants, and covenants to the Licensee as follows:

 

		a)	Licensor is a corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware having full corporate power to conduct each business as presently conducted, and to enter into and consummate
the transactions contemplated by this Agreement.

		b)	Licensor warrants that Licensor has the rights, ownership, titles and interests, legal and equitable,
necessary in the Intellectual Property to grant the Licensee the exclusive license and rights described herein.

		c)	The license granted to the Licensee under this Agreement is the only license granted by Licensor
with respect to the Intellectual Property within the Licensed Field and during the term of this Agreement Licensor shall not grant
any third-party rights inconsistent with the rights granted Licensee herein.

		d)	There are no pending, and to the knowledge of Licensor as of the Effective Date, any threatened
actions, claims, or proceedings in any way relating to the Intellectual Property.

 

9.5Representations
and Warranties of the Licensee. The Licensee represents, warrants, and covenants to Licensor as follows:

 

		a)	The Licensee is a corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada having full corporate power to conduct each business as presently conducted, and to enter into and consummate
the transactions contemplated by this Agreement.

		b)	The execution, delivery and performance under this Agreement by the Licensee has been duly authorized
by all required corporate action, do not constitute a breach, default or violation of any of the provisions of Licensee’s
Articles of Incorporation, Bylaws or other charter documents, or any other agreement, law, or regulation to which it may be a party
or by the terms of which it may be bound.

 

 

 

    	 	8	 

     

    

 

 X. OWNERSHIP OF LICENSED PRODUCTS, IMPROVEMENTS AND nEW INVENTIONS

 

10.1 Licensed
Products. Licensed Products will be owned solely by the Licensee solely within the Licensed Field. Any Improvements and New
Inventions will be owned solely by the Licensee and shall be free and clear of any ownership or other rights claimed by Licensor
and shall not be part of the Intellectual Property and/or Nanosponge Technology. Furthermore, the Licensee will have the sole right
to file any patent, copyright, or other intellectual property rights applications or registrations resulting from any such Improvements
or New Inventions anywhere in the world. Notwithstanding, Licensee hereby irrevocably transfers and assigns to Licensor, completely
and exclusively, and by virtue of the execution of this Agreement all the Licensees rights, title, and interest, including but
not limited to, all intellectual property rights, if any, in and to the Improvements and New Inventions outside the Licensed Field
described elsewhere herein. Without limiting the generality of the foregoing, and in the alternative, the Licensor hereby irrevocably
transfers and assigns to the Licensee, completely and exclusively, and by virtue of the execution of this Agreement and without
any other additional compensation, all of the Licensor’s rights, title, and interest, including, but not limited to, all
intellectual property rights, if any, in and to the Improvements and New Inventions within the Licensed Field described elsewhere
herein, except as provided in Section 8.4.1 herein. The Licensor acknowledges and agrees that, as a result of the foregoing provisions
of this Section 10, all such Improvements and New Inventions hereby become the exclusive property of the Licensee solely within
the Licensed Field described elsewhere herein, and, the Licensee will have the sole right to determine the treatment of any Improvements
and New Inventions within the Licensed Field, including, without limitation, the rights to keep Improvements and New Inventions
as trade secrets, to file and execute patent applications on Improvements and New Inventions, to use and disclose Improvements
and New Inventions without prior patent application, to file registrations for any other intellectual property rights, and to transfer
any intellectual property rights to any party the Licensee so choose, or to follow any other procedure that the Licensee deems
appropriate. Notwithstanding anything contained in this Agreement to the contrary, nothing in this Agreement shall preclude Licensee
from developing, manufacturing, marketing or distributing devices suitable to (i) extract hydrocarbons from certain material, and
(ii) gold and other precious metals from sands and other sand-based ore bodies. Notwithstanding anything contained in this Agreement
to the contrary, nothing in this Agreement shall preclude Licensor from developing, manufacturing, marketing or distributing devices
suitable to applications outside the Licensed Field.

 

 

10.2 Cooperation
between Parties for Patent Protection. In the event there are Improvements and/or New
Inventions, the Parties agree that there may likely be applications discovered outside the Licensed Field, and that Licensor
will have certain rights and interests outside the Licensed Field.  Licensee further understands that such applications
may have commercial significance in countries/regions in which Licensee has insufficient commercial opportunities to pursue
patent protection. To help preserve Licensors potential interest in such countries/regions outside the Licensed Field,
Licensee agrees to alert Licensor, in sufficient time before any applicable filing deadlines, into which countries/regions it
intends to pursue patent protection on such Improvements and/or New Inventions. Should Licensor wish to pursue any patent
protection or patent protection in specific countries/regions of insufficient interest to Licensee, Licensee shall assign
Licensor its rights and full ownership to said Improvements and/or New Inventions in such countries/regions at
Licensor’s expense, in exchange for an irrevocable, royalty-free, exclusive license within the Licensed Field, and
participate fully in obtaining patent protection in such countries/regions. The same
shall apply in the event there are inventions or Improvements and/or New Inventions for which Licensee does not wish to
pursue patent protection.

 

10.3 Shared
Compensation outside Licensed Field. Licensor will provide 50% compensation to Licensee if in the case there is any
license deal to any New Invention made possible outside the Licensed Field by Licensor to any third-party.

 

 XI. Miscellaneous

 

11.1 Choice
of Law. This Agreement will be governed by the laws of the State of Nevada.

 

11.2 Compliance
with Laws and Regulations. The Licensee shall use reasonable efforts to comply with all foreign and United States
federal, state and local laws and regulations applicable to the testing, production, transportation, packaging, labeling,
export, sale and use of the Licensed Products. In particular, Licensee shall be responsible for assuring compliance with all
U.S. export laws and regulations applicable to this license and the Licensee’s activities hereunder. The Licensee shall
be responsible for all taxes, duties, and other governmental charges, however, designated, which are now or hereafter imposed
by any such authority (a) by reason of the performance by the Licensee of their obligations under this Agreement, or the
payment of any amounts by the Licensee to Licensor under this Agreement, (b) based on the Intellectual Property or Licensed
Products, or (c) relating to the import of the Licensed Products into any such territory. Licensor agrees to use reasonable
efforts to cooperate with Licensee at Licensee’s expense, in connection with any filings required by any governmental
entity.

 

 

 

 

    	 	9	 

     

    

 

11.3
Waiver of Conflict of Interest. Daniel Hashim is an officer of both parties to this Agreement. Both parties agree to
waive any actual or perceived conflicts of interest arising from his being an officer or director of both parties, and each
party hereby agrees, and consents to, Dr. Hashim’s continuing in these roles or in other roles in which he may be
engaged to participate, regardless of whether Dr. Hashim is engaged as an officer, director, employee, or independent
consultant.

 

11.4 Notices.
Any notice, report, request or other communication required or permitted to be given under this Agreement by a Party to the
other parties shall be either hand-delivered (including delivery by courier), or mailed by first-class registered or
certified mail (airmail if internationally), with return receipt requested, and addressed as follows:

 

	 	To Licensee:	Vivakor, Inc.
	 	 	2 Park Plaza,
Suite 800
	 	 	Irvine, CA 92614
	 	 	Tel: 949-281-2606
	 	 	Fax:
	 	 	 
	 	With a copy to:	Law Offices of Craig V. Butler
	 	 	300 Spectrum Center Drive, Suite 300
	 	 	Irvine, CA 92618
	 	 	Attn. Craig V. Butler
	 	 	Fax: (949) 209-2545
	 	 	Email: cbutler@craigbutlerlaw.com
	 	 	 
	 	To Licensor:	CSS Nanotech, Inc.
	 	 	3511 Westbrook
Blvd.
	 	 	East Islip, NY
11730
	 	 	Attn. John C.
Campo
	 	 	Tel: 631-774-9703
	 	 	Email: johncampo@cssnanotech.com
	 	 	daniel@cssnanotech.com

 

Each Party
may designate in writing a new address to which any notice may thereafter be given. Any notice sent by registered or certified
mail shall be deemed to have been given at the time of the receipt thereof by the other Party or three (3) calendar days after
the time of mailing, whichever is earlier.

 

11.5 Entire
Agreement. This Agreement contains the entire agreement with respect to the subject matter hereof and supersedes any and
all prior agreements, written or oral with respect thereto.

 

11.6 Waivers
and Amendments; Non-Contractual Remedies; Preservation of Remedies. This Agreement shall not be modified or amended
except pursuant to an instrument in writing executed and delivered on behalf of each Party to be bound. No delay on the part
of any Party, in exercising any right hereunder shall operate as a waiver thereof. Neither any waiver on the part of any
Party of any such right, nor any single or partial exercise of any such right shall preclude any further exercise thereof or
the exercise of any other such right unless waived in writing. The rights and remedies hereunder provided are cumulative and
except as otherwise provided herein are not exclusive of any rights or remedies that any party may otherwise have at law or
in equity. The rights and remedies of any party based upon, arising out of or otherwise in respect of any inaccuracy in or
breach of any representation, warranty, covenant or agreement contained in this Agreement shall in no way be limited by the
fact that the act, omission, occurrence, or other state of facts upon which any claim of any such inaccuracy or breach is
based may also be the subject matter of any other representation, warranty, covenant or agreement contained in this Agreement
(or in any other agreement between the Parties) as to which there is no inaccuracy or breach.

 

 

 

    	 	10	 

     

    

 

11.7 Binding
Effect; No Assignment. This Agreement shall be binding upon and inure to the benefit of the parties named herein and
their respective successors and permitted assigns. The parties may not assign either this Agreement or any of its rights,
interests, or obligations hereunder without the prior written approval of the other party.

 

11.8 Severability.
If any term or provision in this Agreement or the application thereof shall be held invalid, void or unenforceable, the remainder
of such term or provision shall remain in full force and effect, and the invalid, void, or unenforceable term or provision shall
be reformed to the extent possible in order to give its intended effect and/or meaning.

 

11.9 Method
of Dispute Resolution. In the event that there arises any disagreement or dispute between the Parties that cannot be
amicably resolved and which relates to the interpretation, enforcement, or violation of the terms of this Agreement, such
matters will be resolved in a United States District Court in the Central District of California. If no such jurisdiction
exists, then any such dispute will be resolved in a state court located in the geographic region of the Central District of
California.

 

11.10 Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

11.11 Construction.
The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, the Agreement shall be construed as if drafted jointly by the parties and no
presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement.

 

11.12 Confidential
Information. Except as expressly provided herein, the Parties agree that, for the term of this Agreement and for five (5)
years thereafter, the Recipient shall keep completely confidential and shall not publish or otherwise disclose and shall not
use for any purpose except for the purposes contemplated by this Agreement any Confidential Information furnished to it by
the Disclosing Party hereto pursuant to this Agreement. Each Party hereto may use or disclose Confidential Information
disclosed to it by the other Party to the extent such use or disclosure is reasonably necessary in filing or prosecuting
patent applications, prosecuting or defending litigation, complying with applicable governmental regulations or otherwise
submitting information to tax or other governmental authorities, conducting clinical trials, or making a permitted sublicense
or otherwise exercising its rights hereunder, provided that if a Party is required to make any such disclosure of another
Party’s Confidential Information, other than pursuant to a confidentiality agreement, it will give reasonable advance
notice to the latter Party of such disclosure and, save to the extent inappropriate in the case of patent applications, will
use its best efforts to secure confidential treatment of such information prior to its disclosure (whether through protective
orders or otherwise.) Except as expressly provided herein, each Party agrees not to disclose any terms of this Agreement to
any third party without the consent of the other Party; provided disclosures may be made as required by securities or other
applicable laws, or to actual or prospective investors or corporate partners, or to a Party’s accountants, attorneys
and other professional advisors.

 

11.13 Publicity.
Unless required by federal and/or state law or regulation, no Party shall release any materials containing the name of
another Party or any of its employees without the prior approval by an authorized representative of such Party, which
approval shall not be unreasonably withheld. The Parties agree to make a mutually-agreed press release regarding this
Agreement promptly following the Effective Date. Should a Party reject a proposed news release, the Parties agree to discuss
the reasons for such rejection, and every effort shall be made to develop an appropriate informational news release.

 

11.14 Further
Assurances. Each Party to this Agreement shall, at the request of the other, furnish and deliver such documents, or other
further assurances as the requesting Party shall reasonably request as necessary or desirable to effect complete consummation
of this Agreement and the transactions contemplated hereby.

 

 

 

 

 

    	 	11	 

     

    

 

11.15 Force
Majeure. Neither Party shall lose any rights hereunder or be liable to the other party for damages or losses (except for
payment obligations) on account of failure of performance by the defaulting party if the failure is caused by war, strike,
fire, Act of God, earthquake, flood, lockout, embargo, governmental acts or orders or restrictions, where failure to perform
is beyond the reasonable control and not caused by the negligence, intentional conduct or misconduct of the nonperforming
party and the nonperforming party has exerted all reasonable efforts to avoid or remedy such force majeure; provided,
however, that in no event shall any party be required to settle any labor dispute or disturbance.

 

11.16 Survival.
The following obligations shall survive the termination of this Agreement: (a) the Licensees’ obligation to supply
reports covering the time periods up to the date of termination; (b) Licensor’s right to receive payments and fees,
accrued or accruable, from payments at the time of any termination; (c) The Licensees’ obligation to maintain records,
and Licensor’s right to have those records inspected; (d) any cause of action or claim of either party, accrued or to
accrue because of any action or omission by the other; (e) The Licensees’ obligations stated in Sections 3.5, 7, 8,
9.1, 9.2, 11.1, 11.3, 11.4, 11.12, 11.13, 11.14, 11.15, 11.16 of this Agreement; and (f) Licensee’s obligations to
return all materials given to it by Licensor.

 

 

 

 

 

[signature page follows]

 

 

 

 

 

 

 

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the date set forth below:

 

 

 

	Licensor:	CSS Nanotech, Inc.
	 	a Delaware corporation
	 	 
	 	

/s/ John C.Campo

	 	By: John C. Campo
	 	Its: Chief Financial Officer
	 	 
	 	 
	Licensee:	Vivakor, Inc.
	 	a Nevada corporation
	 	 
	 	/s/ Matt Nicosia
	 	By: Matt Nicosia
	 	Its: Chief Executive
Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	13Exhibit 10.6

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE
EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of September 24, 2020 (“Effective
Date”), by and between Vivakor, Inc., a Nevada corporation (the “Company”), and Matthew Nicosia (the
“Executive”).

 

WITNESSETH:

 

WHEREAS, Executive
is currently employed with the Company and the Company desires to continue retaining the services of Executive, and Executive desires
to remain employed by the Company, on the terms and conditions of this Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and agreements set forth herein, the Company and Executive, intending to
be legally bound, hereby agree as follows:

  

1.              
Employment.  The Company agrees to employ Executive as its Chief Executive Officer, and Executive accepts such
employment and agrees to perform executive employment services for the Company, for the period and upon the other terms and conditions
set forth in this Agreement.

 

2.               Term. 
The initial term of Executive’s employment hereunder (the “Initial Term”) shall commence on the Effective
Date, and shall continue until the earlier of (i) three (3) years after the Effective Date or (ii) the date this Agreement is
terminated upon written notice by either party as set forth in Section 5 (Termination).  Sections 6 (Compensation
upon the Termination of Executive’s Employment) and 7 (Change of Control) of this Agreement shall govern the amount of
any compensation to be paid to Executive upon termination of this Agreement and his employment. Notwithstanding anything to
the contrary herein, the parties acknowledge and agree that the Company may only terminate Executive’s employment for
Cause (as hereinafter defined). At the end of the Initial Term (if this Agreement is not terminated pursuant to Section 5
during the Initial Term), this Agreement will be automatically renewed for successive one-year terms (each a “Renewal
Term”) unless either the Executive or Company gives written notice to the other party at least three months before the
end of the then current term (either the Initial Term or any Renewal Term as applicable) that he/it elects not to renew this
Agreement for any subsequent year. Any non-renewal of the Agreement by either party shall be deemed a termination pursuant to
Section 5.5 and shall be subject to the severance compensation provisions of Section 6.3 related to termination under Section
5.5. The Initial Term and any applicable Renewal Term are referred to herein collectively as the “Term.”

 

	3.	Position and Duties.

 

3.1.         
Service with the Company.  During the Term of this Agreement, Executive agrees to perform such executive employment
duties as the Board of Directors of the Company (the “Board”) shall reasonably assign to him, as the Company’s
Chief Executive Officer, from time to time.

 

3.2.         
Conflicting Duties.  Executive hereby confirms that he is under no contractual commitments inconsistent with
his obligations set forth in this Agreement. The Company agrees that Executive may, during the Term of this Agreement, perform
services for any other corporation, firm, entity or person that is not otherwise inconsistent with the provisions of this Agreement
or Executive’s fiduciary obligations to the Company.

 

	4.	Compensation and Benefits.

 

4.1.         
Base Salary.  As compensation for all services to be rendered by Executive under this Agreement, the Company
shall pay to Executive an annual salary of Fifty Thousand Dollars ($50,000) (the “Base Salary”), subject to potential
increases as stated below. The Base Salary is payable in equal installments and will be paid every two weeks. The Base Salary
will increase as follows: (i) upon the Company earning a total of at least $3,000,000 in Earnings Before Interest, Taxes, Depreciation,
and Amortization (“EBITDA”) during any calendar year, the Base Salary will increase to $100,000 for all calendar years
thereafter until if and when further increased pursuant to this Section 4.1; and (ii) for every $1,500,000 increase in EBITDA earned
by the Company during any calendar year, the Base Salary will increase an additional $50,000 up to a maximum Base Salary of $350,000.
Any increase to the Base Salary will be effective the first pay period of the Company after the Company reaches a particular EBITDA
amount is achieved that triggers the increase. For example purposes only and not by way of limitation: (i) if on October 31, 2021
the Company reaches $3,000,000 in EBITDA earned during the 2021 calendar year, the Base Salary would increase to $100,000 commencing
the Company’s first pay period after October 31, 2021; and (ii) if on November 15, 2022 the Company reaches $4,500,000 in
EBITDA earned during the 2022 calendar year, the Base Salary would increase to $150,000 commencing the Company’s first pay
period after November 15, 2022.

 

 

 

    	 	1	 

     

    

4.2.         
Bonuses. The Company and Executive shall establish an annual
bonus plan for Executive. Executive will be eligible to participate in such annual bonus plan during the term of this Agreement
with goals (the “Annual Goals”) established and approved by the Board. Pursuant to this annual bonus plan, Executive
shall be eligible for cash bonuses valued at one hundred percent of the then current Base Salary. At the conclusion of each calendar
year during the Term, the Executive and Board shall determine the level of success achieved by the Executive against the Annual
Goals. Bonuses will be determined and paid within thirty days of each calendar year during the Term. If Executive’s employment
is terminated for any reason other than Cause or his voluntary resignation without Good Reason, he will be entitled to receive
any bonus earned up to the date of termination as reasonably determined by the Board. Notwithstanding the foregoing, at
any time the Base Salary is $200,000 or more, the Company will pay Executive a minimum annual bonus of that Base Salary within
90 days after the end of each calendar year. Any amounts paid as an annual bonus will not be included in the Base Salary calculation
in the next year of employment. 

 

4.3.         
Grant of Stock Options. Executive may be eligible for stock option or other grants under the Company’s current
or future stock option plans as determined by the Board (or the Compensation Committee of the Board, if applicable) in its discretion.
The Company hereby agrees to grants to Executive an incentive stock option to purchase five million (5,000,000) shares of the Company’s
common stock at an exercise price equal to 110% of the fair market value of the Company’s Common Stock on the date of grant.
The Company will grant that stock option to Executive within 5 days after the Effective Date. The Company will provide to the Executive
an Option Agreement (with a cashless exercise component) under the Company’s then current Stock Option Plan. Vesting for
that stock option will be as follows: 5,000,000 shares will cliff vest after five years of employment to the Company. In the event
Executive is terminated without Cause (as defined in Section 5.3) or resigns for Good Reason (as defined in Section 5.5), one hundred
percent (100%) of the then unvested shares subject to each Option Agreement will fully vest and become fully exercisable. Each
Option Agreement will allow Executive to exercise the options provided by each Option Agreement for a period of ten (10) years
following any termination of Executive’s employment.

 

4.4.         
Participation in Benefit Plans.  Executive shall be included to the extent eligible thereunder in any and all
plans of the Company providing general benefits for the Company’s executive employees, including, without limitation, medical,
dental, vision, disability, life insurance, 401(k) plan, sick days, vacation, and holidays.  Executive’s participation
in any such plan or program shall be subject to the provisions, rules, and regulations applicable thereto.  In addition, during
the Term of this Agreement, Executive shall be eligible to participate in all non-qualified deferred compensation and similar compensation,
bonus and stock plans offered, sponsored or established by Company on substantially the same or a more favorable basis as any other
employee of Company.  The Company will pay directly or reimburse Executive for supplemental disability coverage, in an amount
approved by the Board (or its Compensation Committee, if applicable). The benefit plans described in this Section 4.3 are collectively
referred to in this Agreement as “Benefit Plans.”

 

4.5.         
Business Expenses.  In accordance with the Company’s policies established from time to time, the Company
will pay or reimburse Executive for all reasonable and necessary out-of-pocket expenses incurred by him in the performance of his
duties under this Agreement, subject to the presentment of appropriate supporting documentation.  In addition, the Company
will reimburse or pay directly for Executive’s personal executive development expenses, in a maximum amount to be approved
by the Board (or its Compensation Committee, if applicable).

 

4.6.         
Vacation. Executive shall be entitled to paid vacations. Executive will accrue four (4) weeks paid vacation time
per year. Vacation accrual has a ceiling of 16 weeks of vacation. Unused vacation will be paid out to Executive upon any termination
of employment. If any paid vacation time is unused for more than twelve (12) months and Executive requests a payout for any or
all of such unused vacation time, the Company will pay to Executive the value of such unused vacation time (calculated pursuant
to the then current Base Salary at the time a payout is requested) for which Executive requests a payout. Executive may request
a payout of unused vacation time up to twice each calendar year during the Term of this Agreement.

 

 

 

    	 	2	 

     

    

4.7.         
Indemnification. In addition to any rights Executive may have under the Company's charter or by-laws, the Company
agrees to indemnify Executive and hold Executive harmless, both during the Term and thereafter, against all costs, expenses (including,
without limitation, fines, excise taxes and attorneys' and accountants’ fees) and liabilities (other than settlements to
which the Company does not consent, which consent shall not be unreasonably withheld) (collectively, "Losses") reasonably
incurred by Executive in connection with any claim, action, proceeding or investigation brought against or involving Executive
with respect to, arising out of or in any way relating to Executive's employment with the Company or Executive's service as a director
of the Company; provided, however, that the Company shall not be required to indemnify Executive for Losses incurred as a result
of Executive's intentional misconduct or gross negligence (other than matters where Executive acted in good faith and in a manner
he reasonably believed to be in and not opposed to the Company's best interests). Executive shall promptly notify the Company of
any claim, action, proceeding or investigation under this paragraph and the Company shall be entitled to participate in the defense
of any such claim, action, proceeding or investigation and, if it so chooses, to assume the defense with counsel selected by the
Company; provided that Executive shall have the right to employ counsel to represent him (at the Company's expense) if Company
counsel would have a conflict of interest in representing both the Company and Executive. The Company shall not settle or compromise
any claim, action, proceeding or investigation without Executive's consent, which consent shall not be unreasonably withheld; provided,
however, that such consent shall not be required if the settlement entails only the payment of money (and no admission of guilt
or wrong doing by Executive) and the Company fully indemnifies Executive in connection therewith. The Company further agrees to
advance any and all expenses (including, without limitation, the fees and expenses of counsel) reasonably incurred by Executive
in connection with any such claim, action, proceeding or investigation. The Company, as soon as reasonably possible, will obtain
and maintain a policy of directors' and officers' liability insurance covering Executive and, notwithstanding the expiration or
earlier termination of this Agreement, the Company shall maintain a directors' and officers' liability insurance policy covering
Executive for a period of time following such expiration or earlier termination equal to the statute of limitations for any claim
that may be asserted against Executive for which coverage is available under such directors' and officers' liability insurance
policy. The provisions of this paragraph shall survive the termination of this Agreement for any reason. 

 

	5.	Termination.

 

5.1.          Disability. 
At the Company’s election, Executive’s employment shall terminate upon Executive’s becoming totally or
permanently disabled for a period of at least six (6) consecutive months. For purposes of this Agreement, the term
“totally or permanently disabled” or “total or permanent disability” means Executive’s
inability on account of sickness or accident, whether or not job-related, to engage in regularly or to perform adequately his
assigned duties under this Agreement. The Company may only make a determination that Executive is totally or permanently
disabled or has a total or permanent disability upon receipt of such a determination from Executive’s regular, treating
physician. Executive, or Executive’s authorized personal representative, will instruct Executive’s regular,
treating physician to furnish to the Company such physician’s determination of whether Executive is totally or
permanently disabled or has a total or permanent disability upon Executive’s, or Executive’s authorized personal
representative’s, receipt of a written request from the Company, signed by any officer.

 

5.2.         
Death of Executive.  Executive’s employment shall terminate immediately upon the death of Executive.

 

5.3.         
Termination for Cause.  The Company may terminate Executive’s employment at any time for “Cause”
(as hereinafter defined) immediately upon written notice to Executive. As used herein, the term “Cause” shall
mean that Executive shall have (i) committed any act of fraud, embezzlement, or any other willful misconduct that is
demonstrably and materially injurious to the Company, or (ii)  violated any material written Company policy or rules of
the Company (provided such policies and rules must be commercially reasonable) and such violation is not cured by Executive within
30 days following written notice thereof to Executive, or (iii) refused to follow the reasonable written directions given
by the Board or its designee or breached any material covenant or obligation under this Agreement or any other written agreement
with the Company and such refusal or breach is not cured by Executive within 30 days following written notice thereof to Executive.
No act or failure to act by Executive shall be considered “willful” unless committed without good faith and without
a reasonable belief that the act or omission was in the Company’s best interest.

 

5.4.         
Resignation.  Executive’s employment shall terminate on the earlier of the date that is thirty (30) days
following the written submission of Executive’s resignation to the Company or the date such resignation is accepted by the
Company. Executive may resign at any time with or without Good Reason.

 

 

 

    	 	3	 

     

    

5.5.         
Termination for Good Reason. Executive may terminate his employment under this Agreement at any time for “Good
Reason” (as hereinafter defined). As used herein, the term “Good Reason” shall mean, without Executive’s
written consent: (a) any reduction in Executive’s Base Salary; (b) a material reduction in Executive’s authority, duties
or responsibilities, including without limitation, removing Executive as Chief Executive Officer; (c) relocation by the Company
of Executive’s work site to a facility or location more than 15 miles from the Executive’s current principal work site
for the Company; (d) imposition of a requirement that Executive report to anyone other than a Company officer or employee rather
than directly to the Board; or (e) a material breach by the Company of any of its obligations under this Agreement or any other
written agreement or covenant with Executive. A condition will not be considered “Good Reason” unless Executive gives
the Company written notice of the condition within ninety (90) days after the condition comes into existence and the Company fails
to remedy the condition within thirty (30) days after receiving Executive’s written notice. To resign for Good Reason, Executive
must resign within three months (3) months after one of the foregoing conditions has come into existence without Executive’s
consent and has not been remedied by the Company within its 30-day remedy deadline.

 

5.6.         
Termination Without Cause. The Company may terminate Executive’s employment at any time Without Cause on 30 days prior
written notice. A termination “Without Cause” is a termination of Executive’s employment by the Company for any
reason other than those set forth in subsections (5.1) (Disability), (5.2) (Death), or (5.3) (For Cause) of this Section.

 

5.7.         
Surrender of Records and Property.  Upon termination of his employment with the Company, Executive shall deliver
promptly to the Company all credit cards, computer equipment, cellular telephone, records, manuals, books, blank forms, documents,
letters, memoranda, notes, notebooks, reports, data, tables, calculations or copies thereof, that are the property of the Company
and that relate in any way to the business, strategies, products, practices, processes, policies or techniques of the Company,
and all other property, trade secrets and confidential information of the Company, including, but not limited to, all documents
that in whole or in part contain any trade secrets or confidential information of the Company that in any of these cases are in
his possession or under his control, and Executive shall also remove all such information from any personal computers that he owns
or controls. Executive may retain a copy of this Agreement and any other agreement between the Executive and the Company (or any
of its affiliates).

 

	6.	Compensation upon the Termination of Executive’s Employment.

 

6.1.         
In the event that Executive’s employment is terminated by Company pursuant to Section 5.3 (Termination for Cause)
or by Executive pursuant to Section 5.4 (Resignation) without Good Reason, then: (i) Executive shall be paid a pro rata amount
of Executive’s then current Base Salary through the date his employment is terminated; and (ii) all unpaid bonuses and accrued
and unpaid compensation (including any accrued and unused vacation time) shall be paid to the Executive.

 

6.2.         
In the event Executive’s employment is terminated pursuant to Section 5.2 (Death), then: (i) Executive’s
beneficiary or a beneficiary designated by Executive in writing to the Company, or in the absence of such beneficiary, Executive’s
estate, shall be paid Executive’s then current Base Salary through the end of the month in which his death occurs; ; and
(ii) all accrued and unpaid compensation (including any accrued and unused vacation time) and earned but unpaid bonus payments
shall be paid to the Executive’s beneficiary or in the absence of such beneficiary, Executive’s estate.

 

6.3.         
In the event Executive’s employment is terminated by the Executive pursuant to Section 5.5 (Termination for Good Reason),
by the Company pursuant to Section 5.1 (Disability), or by the Company pursuant to Section 5.6 (Termination Without Cause), or
by the Company pursuant to Section 2 electing for any reason to not renew this Agreement, then: (i) Executive shall be paid Executive’s
then current Base Salary through the date his employment is terminated and for any accrued and unused vacation time; and (ii) the
Company shall pay to Executive, as a severance allowance, the amounts described in Sections 6.3.1. through 6.3.4. (together the
“Severance Payments”), and the Company shall pay no other compensation or benefits of any kind.

 

6.3.1.    
Company shall pay to Executive the Executive’s then current monthly Base Salary multiplied by two (2), not to exceed
$150,000, for a period of twelve (12) months beginning upon Executive’s satisfaction of the Conditions (the “Severance
Period”), paid on the Company’s regular paydays throughout the Severance Period.

 

6.3.2.    
Company shall pay for Executive’s benefit for outplacement services for Executive for twelve (12) months with an outplacement
firm selected by Executive.

 

 

 

    	 	4	 

     

    

 

6.3.3.    
Company shall pay for Executive’s benefit, if Executive elects to continue Executive’s health insurance coverage
under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) following the termination of Executive’s employment,
Executive’s monthly premium (including any premiums related to Executive’s eligible dependents) under COBRA until the
earliest of (a) the close of the Severance Period, (b) the expiration of Executive’s continuation of coverage under COBRA,
or (c) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment.

 

6.3.4.    
Company shall pay to Executive upon the earlier of (a) the date that is sixty (60) days after termination of Executive’s
employment and (b) Executive’s satisfaction of the Conditions (defined below), any amounts payable under any Company bonus
plans in which Executive is eligible to participate as of the date of the termination of his employment, after pro rating any applicable
targets, quotas, and bonus payments as of the termination date, regardless when such bonus may be due under the bonus plan.

 

6.3.5.    
Company shall amend, immediately prior to the effectiveness of the termination of Executive’s employment, each Option
Agreement (a) to make 100% of the then unvested shares subject to each Option Agreement fully vested and fully exercisable, (b)
to terminate any rights the Company may have to repurchase unvested shares and (c) to permit Executive to exercise the options
provided by each Option Agreement for a period of ten (10) years following the termination of Executive’s employment.

 

Notwithstanding anything herein
to the contrary, the Company shall begin COBRA payments as soon as necessary for Executive to continue coverage, even if Executive
has yet to meet the Conditions (as defined below); provided that this obligation shall not extend more than sixty (60) days
from the date of termination of Executive’s employment.

 

6.4.         
Conditions. The Company’s obligation to pay the Severance Payments will not apply unless (a) Executive has
complied with Section 5.6 (Surrender of Records and Property), (b) Executive has resigned as a member of the Board and the boards
of directors of any Company subsidiaries, if applicable, and (c) Executive has executed the Company’s standard release agreement
(the “Release”) that includes (i) a full mutual release of all claims by both parties and (ii) non-disparagement of
either party by the other (collectively, clauses (a) through (c) of this Section 6.4 are the “Conditions”). The Company
will deliver the Release (executed by the Company) to Executive within ten (10) days of termination of Executive’s employment.
If the Company has failed to deliver the Release by the time Executive has complied with all other provision of Section 6.4, then
the Severance Payments will commence as scheduled if the Executive has complied with all other provisions of Section 6.4. The Executive
and the Company must both comply to satisfy the Conditions within sixty (60) days of termination of Executive’s employment.

 

	7.	Change of Control.

 

7.1.         
Definition of Change of Control.  As used herein, a “Change of Control” shall means: (a) the
sale, transfer, or other disposition of all or substantially all of the Company’s assets, (b) any merger, consolidation or
other business combination transaction of the Company with or into another corporation, entity or person, other than a transaction
in which the holders of at least a majority of the shares of voting capital stock of the Company outstanding immediately prior
to such transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting
capital stock of the surviving entity) a majority of the total voting power represented by the shares of voting capital stock of
the Company (or the surviving entity) outstanding immediately after such transaction, or (c) the direct or indirect acquisition
(including by way of a tender or exchange offer) by any person, or persons acting as a group, of beneficial ownership or a right
to acquire beneficial ownership of shares representing a majority of the voting power of the then outstanding shares of capital
stock of the Company. A transaction shall not constitute a Change of Control if its sole purpose is to change the state of the
Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons
who held the Company’s securities immediately before such transaction.

 

7.2.         
Change of Control Bonus. In the event of a Change of Control, the Company shall, within thirty (30) days after occurrence
of the Change of Control, pay Executive a lump sum amount equal to Executive’s then current annual Base Salary multiplied
by two (2).

 

 

 

    	 	5	 

     

    

 

7.3.         
Vesting Acceleration. In the event of a Change of Control, and notwithstanding the provisions of any Option Agreement
to the contrary, immediately prior to such Change of Control, one hundred percent (100%) of the then unvested shares subject to
each Option Agreement will fully vest and become fully exercisable, and any Company rights of repurchase of unvested shares with
respect thereto will fully lapse, as of the closing date of the Change of Control. The Company shall also amend each Option Agreement
to permit Executive to exercise the options provided by each Option Agreement for a period of ten (10) years following the termination
of Executive’s employment.

 

7.4.         
Benefit Plans Following a Change of Control. In the event of a Change of Control following which the Company (or
the surviving entity) continues to employ Executive and the Company (or the surviving entity) offers benefit plans that are less
favorable to Executive and Executive’s eligible dependents than the Benefit Plans Executive and Executive’s dependents
had immediately prior to the Change of Control, the Company (or the surviving entity) will reimburse Executive for any expenses
he incurs to independently acquire additional coverage under a third-party plan to cover such deficit in benefits for up to a one
(1) year period.

 

7.5.         
Severance Payments Following a Change of Control. In the event of a Change of Control following which the Company
(or the surviving entity) continues to employ Executive, in the event Executive’s employment is terminated by the Executive
pursuant to Section 5.5 (Termination for Good Reason) or by the Company (or the surviving entity) pursuant to Section 2 electing
for any reason to not renew this Agreement, the Company (or the surviving entity) shall pay the Severance Payments to Executive
in accordance with Section 6.3 above.

 

	8.	Successors.

 

8.1.         
The Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase,
merger, acquisition, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or
assets shall assume the obligations of the Company under this Agreement and agree expressly to perform the obligations of the Company
under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in
the absence of a succession.

 

8.2.         
Executive’s Successors. The terms of this Agreement and all rights of Executive hereunder shall inure to the
benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors,
heirs, distributes, devisees and legatees.

 

	9.	Other Provisions.

 

9.1.         
Code Section 409A. For purposes of Section 409A Internal Revenue Code, as amended (“Section 409A”), Executive
hereby elects to receive, and the Company hereby agrees to pay, each amount payable under this Agreement at the times, and on the
terms and conditions, set forth herein. Notwithstanding the foregoing, if Section 409A would impose any additional tax on
payments within the first six (6) months following Executive’s Separation from Service (as defined in Section 409A),
such payments shall be delayed to the minimum extent necessary to avoid such additional tax.  Any delayed payments shall be
paid in a lump sum on the first day of the seventh (7th) month after Executive’s Separation from Service.

 

9.2.         
Governing Law; Venue.  This Agreement is made under and shall be governed by and construed in accordance with
the laws of the State of California without reference to conflicts of law provisions of any jurisdiction. Any dispute arising under
or related to this Agreement will be resolved exclusively in federal or state court in Orange County, California and the parties
hereby consent to such jurisdiction and venue.

 

9.3.         
Prior Agreements.  This Agreement contains the entire agreement of the parties relating to the subject matter
hereof and supersedes all prior agreements and understanding with respect to such subject matter, and the parties hereto have made
no agreements, representations, or warranties relating to the subject matter of this Agreement which are not set forth herein.

 

9.4.         
Withholding Taxes and Right of Offset.  The Company may withhold from all payments and benefits under this Agreement
all federal, state, city, or other taxes as shall be required pursuant to any law or governmental regulation or ruling. 

 

 

 

    	 	6	 

     

    

 

9.5.         
No Duty to Mitigate. Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement,
nor shall any such payment be reduced by any earnings that Executive may receive from any other source.

 

9.6.         
Amendments.  No amendment or modification of this Agreement shall be deemed effective unless made in writing
signed by Executive and the Company.

 

9.7.         
Headings; Interpretation. All captions and section headings used in this Agreement are for convenient reference only
and do not form a part of this Agreement. As used in this Agreement, unless the context expressly indicates otherwise, the word
“or” is inclusive and means “and/or” and the word “including” (or any variation of that word)
means “including without limitation” or a phrase of equivalent meaning.

 

9.8.         
No Waiver.  No term or condition of this Agreement shall be deemed to have been waived nor shall there be any
estoppel to enforce any provisions of this Agreement, except by a statement in writing signed by the party against whom enforcement
of the waiver or estoppel is sought.  Any written waiver shall not be deemed a continuing waiver unless specifically stated,
shall operate only as to the specific term or condition waived, and shall not constitute a waiver of such term or condition for
the future or as to any act other than that specifically waived.

 

9.9.         
Severability.  To the extent any provision of this Agreement shall be invalid or unenforceable, it shall be
considered deleted from this Agreement and the remainder of such provision and of this Agreement shall be unaffected and shall
continue in full force and effect.

 

9.10.      
Survivability.  Sections 6, 7, 8, and 9 of this Agreement shall survive the termination of this Agreement and
the termination of Executive’s employment with the Company.

 

9.11.      
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all
of which together will constitute one and the same instrument.

 

 

IN WITNESS WHEREOF, the parties have executed
this Executive Employment Agreement as of the day and year set forth above.

 

	 	“Company”:	
         

         

        Vivakor, Inc., a Nevada corporation

	 	 	
         

         

	 	 	/s/ Tyler Nelson	 
	 	 	By: Tyler Nelson
	 	 	Title: Chief Financial Officer
	 	 	 
	 	 	 
	 	“Executive”:	
         

         

         

        /s/ Matthew Nicosia
	 
	 	 	Matthew Nicosia, an individual

 

 

 

 

 

 

 

 

 

    	 	7

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