Document:

Unassociated Document

 

    
      

    

    EXHIBIT
4.2

     

    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE
U.S. SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR FOREIGN
JURISDICTION, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED
PURSUANT TO THE RELEVANT PROVISIONS OF U.S. FEDERAL AND STATE OR APPLICABLE
FOREIGN SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER U.S.
FEDERAL AND STATE OR APPLICABLE FOREIGN SECURITIES LAWS IS NOT
REQUIRED.

     

    

     

    VIVAKOR,
INC.

    NOTICE OF
NONSTATUTORY STOCK OPTION GRANT

    

    VIVAKOR,
INC. (the “Company”) hereby grants you the following Option to purchase
shares of its common stock (“Shares”).  The terms and conditions of
this Option are set forth in the Nonstatutory Stock Option Agreement
(“Nonstatutory Stock Option Agreement”) that follows which is attached to and
made a part of this document.  This page is meant to be a cover page
for informational purposes only, in the event any of the terms hereon are in
conflict with the Nonstatutory Stock Option Agreement, the terms of the
Nonstatutory Stock Option Agreement shall supersede the information on this
page.

     

    

     

    
      	
              Date
      of Grant:

            	
              July
      27, 2009

            
	 	 
	
              Name
      of Optionee:

            	
              Tannin
      Fuja

            
	 	 
	
              Number
      of Option Shares:

            	
              3,000,000

            
	 	 
	
              Exercise
      Price per Share:

            	
              $0.23

            
	 	 
	
              Vesting
      Start Date:

            	
              July
      27, 2009

            
	 	 
	
              Type
      of Option:

            	
              
o  Incentive
      Stock Option

            	
              
 x  Nonstatutory
      Stock Option

            
	 	 	 
	
              Vesting
      Schedule:

            	
              Vesting
      shall be on an annual basis over 3 years with 1/3 vesting on June 30,
      2010, 1/3 vesting on June 30, 2011 and the remaining 1/3 vesting on June
      30, 2012.

            
	 	 
	
              Payment
      Forms:

            	
              By
      cash, cash equivalents, or Shares owned by the Optionee for at least six
      months, and if the Company’s Shares become publicly traded, by “cashless”
      exercise, as set forth in the Nonstatutory Stock Option
      Agreement.

            

    

     

    
 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    VIVAKOR, INC.

    

    NONSTATUTORY  STOCK  OPTION
AGREEMENT

    

    Optionee:Tannin
Fuja

    

    
      	
              1.  

            	
              Grant
      of Stock Option. As of the Date of Grant
      (identified in Section 19 below), Vivakor, Inc., a Nevada
      corporation (the “Company”), hereby grants
      a Nonstatutory Stock Option (the “Option”) to the Optionee
      (identified above), to purchase the number of shares of the Company’s
      common stock, $0.001 par value per share (the “Common Stock”),
      identified in Section 19 below (the “Shares”), subject to the
      terms and conditions of this agreement (the “Nonstatutory Stock Option
      Agreement”). The Shares, when issued to the Optionee upon the
      exercise of the Option, shall be fully paid and nonassessable. The Option
      is not an “incentive stock option” as defined in Section 422 of the
      Internal Revenue Code.

            

    

    

    
      	
              2.  

            	
              Definitions.
      All capitalized terms used herein shall have the meanings provided herein.
      Section 19 below sets forth meanings for various capitalized terms
      used in this Agreement.

            

    

    

    
      	
              3.  

            	
              Option
      Term. The Option shall commence on the Date of Grant (identified in
      Section 19 below) and terminate on the date immediately prior to the
      eighth (8th)
      anniversary of the Date of Grant. The period during which the Option is in
      effect and may be exercised is referred to herein as the “Option
      Period”.

            

    

    

    
      	
              4.  

            	
              Option
      Price. The Option Price per Share is identified in Section 19
      below.

            

    

     

    
      	
              5.  

            	
              Vesting.
      The total number of Shares subject to this Option shall vest in accordance
      with the Vesting Schedule
      (identified in Section 19 below). The Shares may be purchased
      at any time after they become vested, in whole or in part, during the
      Option Period; provided, however, the Option may only be exercisable to
      acquire whole Shares. The right of exercise provided herein shall be
      cumulative so that if the Option is not exercised to the maximum extent
      permissible after vesting, the vested portion of the Option shall be
      exercisable, in whole or in part, at any time during the Option
      Period.

            

    

    

    
      	
              6.  

            	
              Method
      of Exercise. The Option is exercisable by delivery of a written
      notice (a form of which is attached hereto) to the attention of the Chief
      Financial Officer of the Company at the address for notices to the Company
      provided below, signed by the Optionee, specifying the number of Shares to
      be acquired on, and the effective date of, such exercise. The Optionee may
      withdraw notice of exercise of this Option, in writing, at any time prior
      to the close of business on the business day preceding the proposed
      exercise date.

            

    

    

    
      	
              7.  

            	
              Method of Payment. The
      Option Price upon exercise of the Option shall be payable to the Company
      in full either: (i) in cash or its equivalent, or (ii) subject
      to prior approval by the Board of Directors or the Compensation Committee
      in its discretion, by tendering previously acquired Shares having an
      aggregate Fair Market Value at the time of exercise equal to the total
      Option Price (provided that the Shares must have been held by the Optionee
      for at least six (6) months prior to their tender to satisfy the
      Option Price), or (iii) subject to prior approval by the Board of
      Directors or the Compensation Committee in its discretion, by withholding
      Shares which otherwise would be acquired on exercise having an aggregate
      Fair Market Value at the time of exercise equal to the total Option Price,
      or (iv) subject to prior approval by the Board of Directors or the
      Compensation Committee in its discretion, by a combination of (i), (ii),
      and (iii) above. Any payment in shares of Common Stock shall be
      effected by the delivery of such shares to the Chief Financial Officer of
      the Company, duly endorsed in blank or accompanied by stock powers duly
      executed in blank, together with any other documents as the Chief
      Financial Officer may require. If the payment of the Option Price is
      remitted partly in Shares, the balance of the payment of the Option Price
      shall be paid in either cash, certified check, bank cashiers’ check, or by
      wire transfer.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    The Board
of Directors or the Compensation Committee, in its discretion, may allow
(i) a “cashless exercise” as permitted under Federal Reserve Board’s
Regulation T, 12 CFR Part 220 (or its successor), and subject to
applicable securities law restrictions and tax withholdings, or (ii) any
other means of exercise which the Board of Directors or the Compensation
Committee, in its discretion, determines to be consistent with applicable
law.

    

    As soon
as practicable after receipt of a written notification of exercise and full
payment, the Company shall deliver to or on behalf of the Optionee, in the name
of the Optionee or other appropriate recipient, Share certificates for the
number of Shares purchased under the Option. Such delivery shall be effected for
all purposes when a stock transfer agent of the Company shall have deposited
such certificates in the United States mail, addressed to Optionee or other
appropriate recipient.

    

    
      	
              8.  

            	
              Restrictions
      on Exercise. The Option may not be exercised if the issuance of
      such Shares or the method of payment of the consideration for such Shares
      would constitute a violation of any applicable federal or state securities
      or other laws or regulations, including any such laws or regulations or
      Company policies respecting blackout periods, or any rules or regulations
      of any stock exchange on which the Common Stock may be
    listed.

            

    

    

    
      	
              9.  

            	
              Termination
      of Service. Voluntary or involuntary termination of Service to the
      Company and the death or Disability of Optionee shall affect Optionee’s
      rights under the Option as follows:

            

    

    

    
      	
              (a)  

            	
              Termination for
      Cause. The vested and non-vested portions of the Option shall
      expire on 12:01 am. (Pacific Time) on the date of termination of
      Service and shall not be exercisable to any extent if Optionee’s Service
      with the Company is terminated for Cause at the time of such termination
      of Service.

            

    

    

    
      	
              (b)  

            	
               Other Involuntary
      Termination or Voluntary Termination. If Optionee’s Service with
      the Company is terminated for any reason other than for Cause, retirement,
      death or Disability at the time of termination of Service, then
      (i) the non-vested portion of the Option shall immediately expire on
      the termination date (ii) the vested portion of the Option shall
      expire to the extent not exercised within three (3) months after the
      date of such termination of Service. In no event may the Option be
      exercised by anyone after the earlier of (A) the expiration of the
      Option Period or (B) three (3) months after termination of
      Service.

            

    

    

    
      	
              (c)  

            	
              Death or
      Disability. If Optionee’s Service with the Company is terminated by
      death or Disability, then the vesting of the Option will be accelerated
      and the entire Option shall be 100% vested on the date of termination of
      Service and shall expire 365 calendar days after the date of such
      termination of Service to the extent not exercised by Optionee or, in the
      case of death, by the person or persons to whom Optionee’s rights under
      the Option have passed by will or by the laws of descent and distribution
      or, in the case of Disability, by Optionee’s legal representative. In no
      event may the Option be exercised by anyone after the earlier of (i) the
      expiration of the Option Period or (ii) 365 days after Optionee’s
      death or termination of Service due to
  Disability.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    
      	
              (d)  

            	
               Retirement. In
      the event of termination due to retirement, the vested portion of the
      Option shall expire on the earlier of (i) the Option Period or
      (ii) three (3) months after the date of retirement, and the unvested
      portion of the Option shall expire.

            

    

    

    
      	
              (e)  

            	
               Change of
      Control. In the event of a “Change in Control” of the Company (as
      defined below) the vesting of the Option will be accelerated and the
      entire Option shall be 100% vested as of the date immediately preceding a
      Change in Control and the Option may be accelerated and the Option shall
      otherwise be affected at such time. For the purposes of this Agreement, a
      “Change in Control” of the Company shall include any event the Board has
      determined and shall also include any other event that constitutes a
      “Change in Control” of the Company as defined in the Optionee’s
      Termination Agreement with the
Company.

            

    

    

    
      	
              10.  

            	
              Non-Qualification
      as an Incentive Stock Option. The Optionee
      understands that the Option is not intended to qualify as an “incentive
      stock option” within the meaning of Section 422 of the Code. The
      Optionee further understands and agrees that neither the Company nor the
      Board of Directors or the Compensation Committee shall be liable or
      responsible for any additional tax liability incurred by the Optionee
      because this Option is not an “incentive stock option” within the meaning
      of the Code.

            

    

    

    
      	
              11.  

            	
              Independent
      Legal and Tax Advice. Optionee acknowledges that the Company has
      advised Optionee to obtain independent legal and tax advice regarding the
      grant and exercise of the Option and the disposition of any Shares
      acquired thereby.

            

    

    

    
      	
              12.  

            	
              Reorganization
      of Company. The existence of the Option shall not affect in any way
      the right or power of the Company or its stockholders to make or authorize
      any or all adjustments, recapitalizations, reorganizations or other
      changes in Company’s capital structure or its business, or any merger or
      consolidation of the Company, or any issue of bonds, debentures, preferred
      or prior preference stock ahead of or affecting the Shares or the rights
      thereof, or the dissolution or liquidation of the Company, or any sale or
      transfer of all or any part of its assets or business, or any other
      corporate act or proceeding, whether of a similar character or
      otherwise.

            

    

    

    
      	
              13.  

            	
              Adjustment
      of Shares. In the event of stock dividends, spin-offs of assets or
      other extraordinary dividends, stock splits, combinations of shares,
      recapitalizations, mergers, consolidations, reorganizations, liquidations,
      issuances of rights or warrants and similar transactions or events
      involving Company, appropriate adjustments shall be made to the terms and
      provisions of this Option.

            

    

    

    
      	
              14.  

            	
              No
      Rights in Shares. Optionee shall have no rights as a stockholder in
      respect of the Shares until the Optionee becomes the record holder of such
      Shares.

            

    

    

    
      	
              15.  

            	
              Investment
      Representation. Optionee will enter into such written
      representations, warranties and agreements as Company may reasonably
      request in order to comply with any federal or state securities law.
      Moreover, any stock certificate for any Shares issued to Optionee
      hereunder may contain a legend restricting their transferability as
      determined by the Company in its discretion. Optionee agrees that Company
      shall not be obligated to take any affirmative action in order to cause
      the issuance or transfer of Shares hereunder to comply with any law, rule
      or regulation that applies to the Shares subject to the
      Option.

            

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      	
              16.  

            	
              No
      Guarantee of Employment or Service. The Option shall not
      confer upon Optionee any right to continued Service or Employment with the
      Company or any subsidiary or affiliate
thereof.

            

    

    

    
      	
              17.  

            	
              Withholding
      of Taxes. This Option is subject to and the Company shall have the
      right to take any action as may be necessary or appropriate to satisfy any
      federal, state, or local tax withholding obligations, including at the
      Board of Directors or the Compensation Committee’s discretion, to make
      deductions from the number of Shares otherwise deliverable upon exercise
      of the Option in an amount sufficient to satisfy withholding of any
      federal, state or local taxes required by
law.

            

    

    

    
      	
              18.  

            	
              General.

            

    

    

    
      	
              (a)  

            	
              Notices. All
      notices under this Agreement shall be mailed or delivered by hand to the
      parties at their respective addresses set forth beneath their signatures
      below or at such other address as may be designated in writing by either
      of the parties to one another. Notices shall be effective upon
      receipt.

            

    

    

    
      	
              (b)  

            	
              Shares
      Reserved. Company shall at all times during the Option Period
      reserve and keep available such number of Shares as shall be sufficient to
      satisfy the requirements of this
Option.

            

    

    

    
      	
              (c)  

            	
              Nontransferability of
      Option. The Option granted pursuant to this Agreement is not
      transferable other than by will, the laws of descent and distribution or
      by a qualified domestic relations order (as defined in Section 414(p) of
      the Internal Revenue Code). The Option will be exercisable during
      Optionee’s lifetime only by Optionee or by Optionee’s legal representative
      in the event of Optionee’s Disability. No right or benefit hereunder shall
      in any manner be liable for or subject to any debts, contracts,
      liabilities, obligations or torts of
Optionee.

            

    

    

    
      	
              (d)  

            	
               Amendment and
      Termination. No amendment, modification or termination of the
      Option or this Agreement shall be made at any time without the written
      consent of Optionee and Company.

            

    

    

    
      	
              (e)  

            	
               No Guarantee of Tax
      Consequences. The Company and the Board of Directors or the
      Compensation Committee make no commitment or guarantee that any federal or
      state tax treatment will apply or be available to any person eligible for
      benefits under the Option. The Optionee has been advised and been provided
      the opportunity to obtain independent legal and tax advice regarding the
      grant and exercise of the Option and the disposition of any Shares
      acquired thereby.

            

    

    

    
      	
              (f)  

            	
               Severability.
      In the event that any provision of this Agreement shall be held illegal,
      invalid, or unenforceable for any reason, such provision shall be fully
      severable, but shall not affect the remaining provisions of the Agreement,
      and the Agreement shall be construed and enforced as if the illegal,
      invalid, or unenforceable provision had not been included
      herein.

            

    

    

    
      	
              (g)  

            	
              Supersedes Prior
      Agreements. This Agreement shall supersede and replace all prior
      agreements and understandings, oral or written, between the Company and
      the Optionee regarding the grant of the Options covered
      hereby.

            

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    
      	
              (h)  

            	
               Governing Law.
      The Option shall be construed in accordance with the laws of the State of
      Nevada without regard to its conflict of law provisions, to the extent
      federal law does not supersede and preempt Nevada
  law.

            

    

    

         19. Definitions
and Other Terms. The following capitalized terms shall have those
meanings set forth opposite them:

    

    (a)
Optionee:  Tannin
Fuja                        

    

    (b) Type
of Option: Nonstatutory Stock
Option               

    

    (c) Date
of Grant: July
27, 2009                       

    

    (d)  Vesting
Start Date:  July 1, 2009                    

    

    (e)
Shares:       3,000,000                shares
of the Company’s Common Stock.

    

    (f)
Option Price: $0.23
per Share.

    

    (g)
Vesting Schedule: Options for Shares shall vest as follows:

    

    Vesting
shall be on an annual basis over 3 years with 1/3 vesting on June 30, 2010, 1/3
vesting on June 30, 2011 and the remaining 1/3 vesting on June 30,
2012.

     

         IN WITNESS WHEREOF, the
Company has, effective as of July 27, 2009, caused this Nonstatutory Stock
Option Agreement to be executed on its behalf by its duly authorized officer,
and Optionee has hereunto executed this Nonstatutory Stock Option Agreement as
of the same date.

    

    

    VIVAKOR,
INC.

    

    
      
        	
                By:
      /s/ Matt
      Nicosia         

              	 
      	
                By:
      /s/ Tannin
      Fuja         

              
	
                      Matt
      Nicosia, Chairman

              	
                 

              	
                Tannin
      Fuja

              
	 
      	 
      	 
      
	
                Address
      for Notices to the Company:

              	 
      	
                Address
      for Notices to Optionee:

              
	 
      	 
      	 
      
	
                Vivakor,
      Inc.

              	 
      	
                2590
      Holiday Road, Suite 100

              
	
                2590
      Holiday Road, Suite 100

              	 
      	
                Coralville,
      IA 52241

              
	
                Coralville,
      IA 52241

              	 
      	 
      

      

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    NOTICE
OF EXERCISE AND COMMON STOCK PURCHASE AGREEMENT

    

    

    Vivakor,
Inc.

    2590
Holiday Road

    Suite
100

    Coralville,
IA 52241

    Attn:  Chief
Financial Officer

    

    
      	
               
      

            	
              Re:

            	
              Exercise
      of Nonstatutory Stock Option

            

    

     

    Dear Sir
or Madam:

    

    Pursuant
to the Nonstatutory Stock Option Agreement dated July 27, 2009  (the
“Nonstatutory Stock Option
Agreement”), I hereby elect to purchase _____________ shares of the
Common Stock of the Company (“Common Stock”) at the
aggregate exercise price of $____________.  I enclose the following
documents (check all that are applicable):

     

    

     

    
      	
              o  

            	
              My
      check in the amount of
$___________.

            

    

     

    
      	
              o  

            	
              Other
      (specify):                                                                                                           .

            

    

     

    The
Common Stock is to be issued and registered in the name(s) of:

     

    ___________________________________

     

    ___________________________________

     

    I understand that
there may be tax consequences as a result of the purchase or disposition of the
Common Stock, I have consulted with any tax consultant I desired to consult, and
I am not relying on the Company for any tax advice. I understand that my
exercise is governed by my Nonstatutory Stock Option Agreement and agree to
abide by and be bound by its terms and conditions. I represent that the Common
Stock is being acquired solely for my own account and not as a nominee for any
other party, or for investment, and that I will not offer, sell or otherwise
dispose of any such Common Stock except under circumstances that will not result
in a violation of the Securities Act of 1933, as amended, or the securities laws
of any state.

     

    Dated:  ___________________,
200_.

     

    
       

      
        

      

    

    (Signature)

     

    
      

    

    (Please
Print Name)

    

      

    

    
      

    

    (Address)

     

    

     

    

    

    

    
      
        
        

      

      
        7Unassociated Document

 

    
      

    

    EXHIBIT
4.3

     

    
      THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE
U.S. SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR FOREIGN
JURISDICTION, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED
PURSUANT TO THE RELEVANT PROVISIONS OF U.S. FEDERAL AND STATE OR APPLICABLE
FOREIGN SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER U.S.
FEDERAL AND STATE OR APPLICABLE FOREIGN SECURITIES LAWS IS NOT
REQUIRED.

       

      

       

      VIVAKOR,
INC.

      NOTICE OF
NONSTATUTORY STOCK OPTION GRANT

      

      VIVAKOR,
INC. (the “Company”) hereby grants you the following Option to purchase
shares of its common stock (“Shares”).  The terms and conditions of
this Option are set forth in the Nonstatutory Stock Option Agreement
(“Nonstatutory Stock Option Agreement”) that follows which is attached to and
made a part of this document.  This page is meant to be a cover page
for informational purposes only, in the event any of the terms hereon are in
conflict with the Nonstatutory Stock Option Agreement, the terms of the
Nonstatutory Stock Option Agreement shall supersede the information on this
page.

       

      

       

      
        	
                Date
      of Grant:

              	
                July
      27, 2009

              
	 	 
	
                Name
      of Optionee:

              	
                Matt
      Nicosia

              
	 	 
	
                Number
      of Option Shares:

              	
                1,500,000

              
	 	 
	
                Exercise
      Price per Share:

              	
                $0.23

              
	 	 
	
                Vesting
      Start Date:

              	
                July
      27, 2009

              
	 	 
	
                Type
      of Option:

              	
                
o  Incentive
      Stock Option

              	
                
 x  Nonstatutory
      Stock Option

              
	 	 
	
                Vesting
      Schedule:

              	
                Vesting
      shall be on an annual basis over 3 years with 1/3 vesting on June 30,
      2010, 1/3 vesting on June 30, 2011 and the remaining 1/3 vesting on June
      30, 2012.

              
	 	 
	
                Payment
      Forms:

              	
                By
      cash, cash equivalents, or Shares owned by the Optionee for at least six
      months, and if the Company’s Shares become publicly traded, by “cashless”
      exercise, as set forth in the Nonstatutory Stock Option
      Agreement.

              

      

       

       

      
 

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      VIVAKOR, INC.

      

      NONSTATUTORY  STOCK  OPTION
AGREEMENT

      

      Optionee:  Matt
Nicosia

      

      
        	
                1.  

              	
                Grant
      of Stock Option. As of the Date of Grant
      (identified in Section 19 below), Vivakor, Inc., a Nevada
      corporation (the “Company”), hereby grants
      a Nonstatutory Stock Option (the “Option”) to the Optionee
      (identified above), to purchase the number of shares of the Company’s
      common stock, $0.001 par value per share (the “Common Stock”),
      identified in Section 19 below (the “Shares”), subject to the
      terms and conditions of this agreement (the “Nonstatutory Stock Option
      Agreement”). The Shares, when issued to the Optionee upon the
      exercise of the Option, shall be fully paid and nonassessable. The Option
      is not an “incentive stock option” as defined in Section 422 of the
      Internal Revenue Code.

              

      

      

      
        	
                2.  

              	
                Definitions.
      All capitalized terms used herein shall have the meanings provided herein.
      Section 19 below sets forth meanings for various capitalized terms
      used in this Agreement.

              

      

      

      
        	
                3.  

              	
                Option
      Term. The Option shall commence on the Date of Grant (identified in
      Section 19 below) and terminate on the date immediately prior to the
      eighth (8th)
      anniversary of the Date of Grant. The period during which the Option is in
      effect and may be exercised is referred to herein as the “Option
      Period”.

              

      

      

      
        	
                4.  

              	
                Option
      Price. The Option Price per Share is identified in Section 19
      below.

              

      

       

      
        	
                5.  

              	
                Vesting.
      The total number of Shares subject to this Option shall vest in accordance
      with the Vesting Schedule
      (identified in Section 19 below). The Shares may be purchased
      at any time after they become vested, in whole or in part, during the
      Option Period; provided, however, the Option may only be exercisable to
      acquire whole Shares. The right of exercise provided herein shall be
      cumulative so that if the Option is not exercised to the maximum extent
      permissible after vesting, the vested portion of the Option shall be
      exercisable, in whole or in part, at any time during the Option
      Period.

              

      

      

      
        	
                6.  

              	
                Method
      of Exercise. The Option is exercisable by delivery of a written
      notice (a form of which is attached hereto) to the attention of the Chief
      Financial Officer of the Company at the address for notices to the Company
      provided below, signed by the Optionee, specifying the number of Shares to
      be acquired on, and the effective date of, such exercise. The Optionee may
      withdraw notice of exercise of this Option, in writing, at any time prior
      to the close of business on the business day preceding the proposed
      exercise date.

              

      

      

      
        	
                7.  

              	
                Method of Payment. The
      Option Price upon exercise of the Option shall be payable to the Company
      in full either: (i) in cash or its equivalent, or (ii) subject
      to prior approval by the Board of Directors or the Compensation Committee
      in its discretion, by tendering previously acquired Shares having an
      aggregate Fair Market Value at the time of exercise equal to the total
      Option Price (provided that the Shares must have been held by the Optionee
      for at least six (6) months prior to their tender to satisfy the
      Option Price), or (iii) subject to prior approval by the Board of
      Directors or the Compensation Committee in its discretion, by withholding
      Shares which otherwise would be acquired on exercise having an aggregate
      Fair Market Value at the time of exercise equal to the total Option Price,
      or (iv) subject to prior approval by the Board of Directors or the
      Compensation Committee in its discretion, by a combination of (i), (ii),
      and (iii) above. Any payment in shares of Common Stock shall be
      effected by the delivery of such shares to the Chief Financial Officer of
      the Company, duly endorsed in blank or accompanied by stock powers duly
      executed in blank, together with any other documents as the Chief
      Financial Officer may require. If the payment of the Option Price is
      remitted partly in Shares, the balance of the payment of the Option Price
      shall be paid in either cash, certified check, bank cashiers’ check, or by
      wire transfer.

              

      

       

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
 

      The Board
of Directors or the Compensation Committee, in its discretion, may allow
(i) a “cashless exercise” as permitted under Federal Reserve Board’s
Regulation T, 12 CFR Part 220 (or its successor), and subject to
applicable securities law restrictions and tax withholdings, or (ii) any
other means of exercise which the Board of Directors or the Compensation
Committee, in its discretion, determines to be consistent with applicable
law.

      

      As soon
as practicable after receipt of a written notification of exercise and full
payment, the Company shall deliver to or on behalf of the Optionee, in the name
of the Optionee or other appropriate recipient, Share certificates for the
number of Shares purchased under the Option. Such delivery shall be effected for
all purposes when a stock transfer agent of the Company shall have deposited
such certificates in the United States mail, addressed to Optionee or other
appropriate recipient.

      

      
        	
                8.  

              	
                Restrictions
      on Exercise. The Option may not be exercised if the issuance of
      such Shares or the method of payment of the consideration for such Shares
      would constitute a violation of any applicable federal or state securities
      or other laws or regulations, including any such laws or regulations or
      Company policies respecting blackout periods, or any rules or regulations
      of any stock exchange on which the Common Stock may be
    listed.

              

      

      

      
        	
                9.  

              	
                Termination
      of Service. Voluntary or involuntary termination of Service to the
      Company and the death or Disability of Optionee shall affect Optionee’s
      rights under the Option as follows:

              

      

      

      
        	
                (a)  

              	
                Termination for
      Cause. The vested and non-vested portions of the Option shall
      expire on 12:01 am. (Pacific Time) on the date of termination of
      Service and shall not be exercisable to any extent if Optionee’s Service
      with the Company is terminated for Cause at the time of such termination
      of Service.

              

      

      

      
        	
                (b)  

              	
                 Other Involuntary
      Termination or Voluntary Termination. If Optionee’s Service with
      the Company is terminated for any reason other than for Cause, retirement,
      death or Disability at the time of termination of Service, then
      (i) the non-vested portion of the Option shall immediately expire on
      the termination date (ii) the vested portion of the Option shall
      expire to the extent not exercised within three (3) months after the
      date of such termination of Service. In no event may the Option be
      exercised by anyone after the earlier of (A) the expiration of the
      Option Period or (B) three (3) months after termination of
      Service.

              

      

      

      
        	
                (c)  

              	
                Death or
      Disability. If Optionee’s Service with the Company is terminated by
      death or Disability, then the vesting of the Option will be accelerated
      and the entire Option shall be 100% vested on the date of termination of
      Service and shall expire 365 calendar days after the date of such
      termination of Service to the extent not exercised by Optionee or, in the
      case of death, by the person or persons to whom Optionee’s rights under
      the Option have passed by will or by the laws of descent and distribution
      or, in the case of Disability, by Optionee’s legal representative. In no
      event may the Option be exercised by anyone after the earlier of (i) the
      expiration of the Option Period or (ii) 365 days after Optionee’s
      death or termination of Service due to
  Disability.

              

      

       

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
 

      
        	
                (d)  

              	
                 Retirement. In
      the event of termination due to retirement, the vested portion of the
      Option shall expire on the earlier of (i) the Option Period or
      (ii) three (3) months after the date of retirement, and the unvested
      portion of the Option shall expire.

              

      

      

      
        	
                (e)  

              	
                 Change of
      Control. In the event of a “Change in Control” of the Company (as
      defined below) the vesting of the Option will be accelerated and the
      entire Option shall be 100% vested as of the date immediately preceding a
      Change in Control and the Option may be accelerated and the Option shall
      otherwise be affected at such time. For the purposes of this Agreement, a
      “Change in Control” of the Company shall include any event the Board has
      determined and shall also include any other event that constitutes a
      “Change in Control” of the Company as defined in the Optionee’s
      Termination Agreement with the
Company.

              

      

      

      
        	
                10.  

              	
                Non-Qualification
      as an Incentive Stock Option. The Optionee
      understands that the Option is not intended to qualify as an “incentive
      stock option” within the meaning of Section 422 of the Code. The
      Optionee further understands and agrees that neither the Company nor the
      Board of Directors or the Compensation Committee shall be liable or
      responsible for any additional tax liability incurred by the Optionee
      because this Option is not an “incentive stock option” within the meaning
      of the Code.

              

      

      

      
        	
                11.  

              	
                Independent
      Legal and Tax Advice. Optionee acknowledges that the Company has
      advised Optionee to obtain independent legal and tax advice regarding the
      grant and exercise of the Option and the disposition of any Shares
      acquired thereby.

              

      

      

      
        	
                12.  

              	
                Reorganization
      of Company. The existence of the Option shall not affect in any way
      the right or power of the Company or its stockholders to make or authorize
      any or all adjustments, recapitalizations, reorganizations or other
      changes in Company’s capital structure or its business, or any merger or
      consolidation of the Company, or any issue of bonds, debentures, preferred
      or prior preference stock ahead of or affecting the Shares or the rights
      thereof, or the dissolution or liquidation of the Company, or any sale or
      transfer of all or any part of its assets or business, or any other
      corporate act or proceeding, whether of a similar character or
      otherwise.

              

      

      

      
        	
                13.  

              	
                Adjustment
      of Shares. In the event of stock dividends, spin-offs of assets or
      other extraordinary dividends, stock splits, combinations of shares,
      recapitalizations, mergers, consolidations, reorganizations, liquidations,
      issuances of rights or warrants and similar transactions or events
      involving Company, appropriate adjustments shall be made to the terms and
      provisions of this Option.

              

      

      

      
        	
                14.  

              	
                No
      Rights in Shares. Optionee shall have no rights as a stockholder in
      respect of the Shares until the Optionee becomes the record holder of such
      Shares.

              

      

      

      
        	
                15.  

              	
                Investment
      Representation. Optionee will enter into such written
      representations, warranties and agreements as Company may reasonably
      request in order to comply with any federal or state securities law.
      Moreover, any stock certificate for any Shares issued to Optionee
      hereunder may contain a legend restricting their transferability as
      determined by the Company in its discretion. Optionee agrees that Company
      shall not be obligated to take any affirmative action in order to cause
      the issuance or transfer of Shares hereunder to comply with any law, rule
      or regulation that applies to the Shares subject to the
      Option.

              

      

       
 

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      
        	
                16.  

              	
                No
      Guarantee of Employment or Service. The Option shall not
      confer upon Optionee any right to continued Service or Employment with the
      Company or any subsidiary or affiliate
thereof.

              

      

      

      
        	
                17.  

              	
                Withholding
      of Taxes. This Option is subject to and the Company shall have the
      right to take any action as may be necessary or appropriate to satisfy any
      federal, state, or local tax withholding obligations, including at the
      Board of Directors or the Compensation Committee’s discretion, to make
      deductions from the number of Shares otherwise deliverable upon exercise
      of the Option in an amount sufficient to satisfy withholding of any
      federal, state or local taxes required by
law.

              

      

      

      
        	
                18.  

              	
                General.

              

      

      

      
        	
                (a)  

              	
                Notices. All
      notices under this Agreement shall be mailed or delivered by hand to the
      parties at their respective addresses set forth beneath their signatures
      below or at such other address as may be designated in writing by either
      of the parties to one another. Notices shall be effective upon
      receipt.

              

      

      

      
        	
                (b)  

              	
                Shares
      Reserved. Company shall at all times during the Option Period
      reserve and keep available such number of Shares as shall be sufficient to
      satisfy the requirements of this
Option.

              

      

      

      
        	
                (c)  

              	
                Nontransferability of
      Option. The Option granted pursuant to this Agreement is not
      transferable other than by will, the laws of descent and distribution or
      by a qualified domestic relations order (as defined in Section 414(p) of
      the Internal Revenue Code). The Option will be exercisable during
      Optionee’s lifetime only by Optionee or by Optionee’s legal representative
      in the event of Optionee’s Disability. No right or benefit hereunder shall
      in any manner be liable for or subject to any debts, contracts,
      liabilities, obligations or torts of
Optionee.

              

      

      

      
        	
                (d)  

              	
                 Amendment and
      Termination. No amendment, modification or termination of the
      Option or this Agreement shall be made at any time without the written
      consent of Optionee and Company.

              

      

      

      
        	
                (e)  

              	
                 No Guarantee of Tax
      Consequences. The Company and the Board of Directors or the
      Compensation Committee make no commitment or guarantee that any federal or
      state tax treatment will apply or be available to any person eligible for
      benefits under the Option. The Optionee has been advised and been provided
      the opportunity to obtain independent legal and tax advice regarding the
      grant and exercise of the Option and the disposition of any Shares
      acquired thereby.

              

      

      

      
        	
                (f)  

              	
                 Severability.
      In the event that any provision of this Agreement shall be held illegal,
      invalid, or unenforceable for any reason, such provision shall be fully
      severable, but shall not affect the remaining provisions of the Agreement,
      and the Agreement shall be construed and enforced as if the illegal,
      invalid, or unenforceable provision had not been included
      herein.

              

      

      

      
        	
                (g)  

              	
                Supersedes Prior
      Agreements. This Agreement shall supersede and replace all prior
      agreements and understandings, oral or written, between the Company and
      the Optionee regarding the grant of the Options covered
      hereby.

              

      

       

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
 

      
        	
                (h)  

              	
                 Governing Law.
      The Option shall be construed in accordance with the laws of the State of
      Nevada without regard to its conflict of law provisions, to the extent
      federal law does not supersede and preempt Nevada
  law.

              

      

      

           19. Definitions
and Other Terms. The following capitalized terms shall have those
meanings set forth opposite them:

      

      
        (a)
Optionee:  Matt
Nicosia                        

        

        (b) Type
of Option: Nonstatutory Stock
Option               

        

        (c) Date
of Grant: July
27, 2009                       

        

        (d)  Vesting
Start Date:  July 1, 2009                    

        

        (e)
Shares:       1,500,000                shares
of the Company’s Common Stock.

      (f)
Option Price: $0.23
per Share.

      

      (g)
Vesting Schedule: Options for Shares shall vest as follows:

      

      Vesting
shall be on an annual basis over 3 years with 1/3 vesting on June 30, 2010, 1/3
vesting on June 30, 2011 and the remaining 1/3 vesting on June 30,
2012.

       

           IN WITNESS WHEREOF, the
Company has, effective as of July 27, 2009, caused this Nonstatutory Stock
Option Agreement to be executed on its behalf by its duly authorized officer,
and Optionee has hereunto executed this Nonstatutory Stock Option Agreement as
of the same date.

      

      

      VIVAKOR,
INC.

      

      

      
        

        
          
            	
                    By:
      /s/ Tannin
      Fuja        

                  	 
      	
                    By:
      /s/ Matt
      Nicosia         

                  
	
                          Tannin
      Fuja, CEO and President

                  	
                     

                  	
                      
      Matt Nicosia

                  
	 
      	 
      	 
      
	
                    Address
      for Notices to the Company:

                  	 
      	
                    Address
      for Notices to Optionee:

                  
	 
      	 
      	 
      
	
                    Vivakor,
      Inc.

                  	 
      	
                    2590
      Holiday Road, Suite 100

                  
	
                    2590
      Holiday Road, Suite 100

                  	 
      	
                    Coralville,
      IA 52241

                  
	
                    Coralville,
      IA 52241

                  	 
      	 
      

          

        

         

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      NOTICE
OF EXERCISE AND COMMON STOCK PURCHASE AGREEMENT

      

      

      Vivakor,
Inc.

      2590
Holiday Road

      Suite
100

      Coralville,
IA 52241

      Attn:  Chief
Financial Officer

      

      
        	
                 
      

              	
                Re:

              	
                Exercise
      of Nonstatutory Stock Option

              

      

       

      Dear Sir
or Madam:

      

      Pursuant
to the Nonstatutory Stock Option Agreement dated July 27, 2009  (the
“Nonstatutory Stock Option
Agreement”), I hereby elect to purchase _____________ shares of the
Common Stock of the Company (“Common Stock”) at the
aggregate exercise price of $____________.  I enclose the following
documents (check all that are applicable):

       

      

       

      
        	
                o  

              	
                My
      check in the amount of
$___________.

              

      

       

      
        	
                o  

              	
                Other
      (specify):                                                                                                           .

              

      

       

      The
Common Stock is to be issued and registered in the name(s) of:

       

      ___________________________________

       

      ___________________________________

       

      I understand that
there may be tax consequences as a result of the purchase or disposition of the
Common Stock, I have consulted with any tax consultant I desired to consult, and
I am not relying on the Company for any tax advice. I understand that my
exercise is governed by my Nonstatutory Stock Option Agreement and agree to
abide by and be bound by its terms and conditions. I represent that the Common
Stock is being acquired solely for my own account and not as a nominee for any
other party, or for investment, and that I will not offer, sell or otherwise
dispose of any such Common Stock except under circumstances that will not result
in a violation of the Securities Act of 1933, as amended, or the securities laws
of any state.

       

      
        Dated:  ___________________,
200_.

         

        
           

          
            

          

        

        (Signature)

         

        
          

        

        (Please
Print Name)

        

          

        

        
          

        

        (Address)

         

        

         

        
          
             

          

          
            7

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