Document:

ex10-1.htm

Exhibit 10.1

 

 

SECOND AMENDMENT TO PROMISSORY NOTES

 

This SECOND AMENDMENT TO PROMISSORY NOTES (the “Amendment”) is entered into as of June 28, 2016 by and among SANUWAVE, INC., a Delaware corporation (the “Borrower”), SANUWAVE HEALTH, INC., a Nevada corporation (the “Parent”), SANUWAVE SERVICES, LLC (“SANUWAVE Services”), and HEALTHTRONICS, INC., a Georgia corporation (“Healthtronics”). 

 

W I T N E S S E T H:

 

WHEREAS, the Borrower and Healthtronics entered into that certain Promissory Note due August 1, 2015 dated August 1, 2005 in the original principal amount of $2,000,000 and that certain Promissory Note due August 1, 2015 dated August 1, 2005 in the original principal amount of $2,000,000 (as amended from time to time, collectively, the “Promissory Notes”), pursuant to which Healthtronics extended loans to the Borrower (capitalized terms, as used herein, shall have the meaning set forth in the Promissory Notes, unless the context otherwise requires); 

 

WHEREAS, the Borrower and HealthTronics entered into that Amendment to Promissory Notes on June 15, 2015, pursuant to which certain terms and provisions of the Promissory Notes, including the maturity date thereof, were amended; and 

 

WHEREAS, the Borrower has requested that Healthtronics further amend certain provisions of the Promissory Notes and Healthtronics has agreed to the amendments set forth in this Amendment, all on the terms and subject to the conditions set forth herein.

 

For the purpose of conforming the same to the intention of the parties and for other value received, it is hereby agreed that each of the Promissory Notes shall be amended and modified in the following particulars:

 

Section 1. Amendments to the Promissory Notes. Effective upon satisfaction of the conditions set forth in Section 3 hereof, each Promissory Note is hereby amended as follows:

 

A.     The definition of Stated Maturity Date of “January 31, 2017” in the first paragraph of the Promissory Notes shall be deleted and replaced with “January 31, 2018.” 

 

	 	
B.
	
Section 7.16 of each of the Promissory Notes shall be deleted and replaced with:

 

	 	
7.16
	
Replacement of Note. Upon any future request of Healthtronics, the Borrower agrees to execute and deliver a replacement Note evidencing the terms of this Note (as amended by (1) that certain Amendment To Promissory Notes dated as of June 15, 2015 between the Borrower and Healthtronics, and (2) that certain Second Amendment To Promissory Notes dated as of June 28, 2016 between the Borrower and Healthtronics) upon delivery of the original Note (or, to the extent the original Note has been lost or mutilated, a lost note affidavit from Healthtronics). 

 

 

 

 

 

Section 2.     Representations and Warranties. Each of the Parent and the Borrower, jointly and severally, represents and warrants to Healthtronics that (a) the execution and delivery of this Amendment has been duly authorized by all requisite corporate action on behalf of the Parent and the Borrower, this Amendment has been duly executed and delivered by an authorized officer of the Parent and the Borrower, and each of the Parent and the Borrower has obtained all authorizations, consents, and approvals necessary for the execution, delivery and performance of this Amendment and such authorizations, consents and approvals are in full force and effect, (b) this Amendment and each Promissory Note (as amended by this Amendment) constitutes the legal, valid and binding obligation of each of the Parent and the Borrower enforceable against the Parent and the Borrower in accordance with its terms, (c) neither the execution nor delivery of this Amendment nor fulfillment of nor compliance with the terms and provisions of this Amendment will conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under, or result in any violation of, or result in the creation of any lien upon any of the properties or assets of the Parent, the Borrower or any of its subsidiaries pursuant to, the charter, limited liability company operating agreement, partnership agreement, by-laws, limited liability company operating agreement or partnership agreement of the Parent, the Borrower or any of its subsidiaries, any award of any arbitrator or any agreement (including any agreement with stockholders, members or partners), instrument, order, judgment, decree, statute, law, rule or regulation to which the parent, the Borrower or any of its subsidiaries is subject, (d) before and after giving effect to this Amendment, no Event of Default has occurred and is continuing under either Promissory Note, (e) Healthtronics has a valid, perfected, first-priority lien upon and security interest in all assets of the Borrower and each of its domestic subsidiaries whether now owned or hereafter acquired, and (f) immediately before and after giving effect to this Amendment, (i) the sum of the debts and liabilities of the Borrower (including, without limitation, contingent liabilities of the Borrower) is not greater than all of the assets of the Borrower at a fair valuation, (ii) the present fair salable value of the assets of the Borrower is not less than the amount that will be required to pay the probable liability of the Borrower on its debts as they become absolute and matured, and (iii) the Borrower is not otherwise insolvent as defined in, or otherwise in a condition which could in any circumstances then or subsequently render any transfer, conveyance, obligation or act then made, incurred or performed by it avoidable or fraudulent pursuant to, any law, rule or regulation that may be applicable to the Borrower pertaining to bankruptcy, insolvency or creditors’ rights, fraudulent conveyance or fraudulent transfers or preferences.

 

Section 3.     Conditions to Effectiveness. The amendments to the Promissory Notes set forth in Section 1 hereof shall become effective as of the date (the “Effective Date”) when each of the following conditions has been satisfied:

 

(a)          The representations and warranties of the Parent, the Borrower and each of its subsidiaries set forth in this Amendment and in all agreements, documents and instruments executed and delivered pursuant to this Amendment shall be true and correct in all material respects when made and as of the date of this Amendment. 

 

 

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(b)           After giving effect to the terms of this Amendment, there shall be no Event of Default or event which, with notice or passage of time or both, would constitute an Event of Default under the Promissory Notes.

 

(c)          On or before the date hereof, the Parent shall execute and deliver Amendment No. 1 to the Class K Warrant Agreement to Healthtronics evidencing an increase in the number of shares subject to purchase thereunder and a decrease in the warrant exercise price for such shares, as more fully set forth in such Amendment.

 

(d)          The Borrower shall have paid the fees and expenses of Schiff Hardin LLP, special counsel to Healthtronics, in connection with this Amendment and Amendment No. 1 to the Class K Warrant Agreement, which shall not exceed $5,000.

 

Section 4.     Reference to and Effect on Promissory Notes and Security Agreement. 

 

A.     From and after the date hereof, the Promissory Notes shall be deemed to mean the Promissory Notes, as amended hereby.

 

B.     This Amendment represents a modification only and is not, and should not be construed as, a novation of the Promissory Notes. Nothing contained in this Amendment shall be construed to narrow the scope of the security interest of Healthtronics in any of the Collateral (as defined in the Security Agreement) or the perfection or priority thereof or to impair or otherwise limit any of the rights, powers, privileges or remedies of Healthtronics under the Promissory Notes or the Security Agreement. The Borrower and Sanuwave Services further ratify and confirm the grants by the Borrower and Sanuwave Services of all liens and security interests under the Security Agreement and other collateral documents to secure the obligations under the Promissory Notes, as amended by this Amendment.

 

C.     The Parent and the Borrower each acknowledges and agrees that the agreement of Healthtronics to amend the terms of the Promissory Notes pursuant to and as reflected in this Amendment does not and shall not create (nor shall the Parent or the Borrower rely upon the existence of or claim or assert that there exists) any obligation of Healthtronics to consider or agree to any further amendments and, in the event that Healthtronics subsequently agrees to consider any further amendment, neither the existence of this Amendment, nor any other conduct of Healthtronics, shall be of any force or effect on consideration or decision with respect to any such requested amendment, and Healthtronics shall have no obligation whatsoever to consider or agree to amend the Promissory Notes or forbear or waive any other default or Event of Default. 

 

Section 5.     Release. Each of the Parent and the Borrower, for itself and on behalf of its heirs, legal representatives, affiliates, successors and assigns, hereby: (a) expressly waives, releases and relinquishes any and all defenses, affirmative defenses, setoffs, claims, counterclaims and causes of action of any kind or nature whatsoever which the Borrower has asserted, or might assert, against Healthtronics or any of its affiliates or any shareholders, members, partners, employees, directors, officers, representatives or agents of Healthtronics or any of its affiliates (collectively, the “Released Parties”) with respect to the Promissory Notes or the indebtedness evidenced thereby, or with respect to any other documents or instruments now or heretofore evidencing, securing or in any way relating to the Promissory Notes or the indebtedness evidenced thereby, including without limitation the Purchase Agreement, or with respect to any other matter, cause or thing relating in any way to the Promissory Notes or the Purchase Agreement; (b) expressly remises, releases, acquits, satisfies and forever discharges each Released Party from any and all manner of debts, accountings, bonds, warranties, representatives, covenants, promises, contracts, controversies, agreements, liabilities, obligations, expenses, damages, judgments, executions, actions, claims, demands and causes of action of any nature whatsoever, whether at law or in equity, either now accrued or hereafter maturing, which the Borrower now has or hereafter can, shall or may have by reason of any matter, cause or thing, from the beginning of the world to and including the date hereof relating in any way to the Promissory Notes, including specifically, but without limitation, matters arising out of or relating to: (i) the Promissory Notes or the indebtedness evidenced thereby, including but not limited to, the administration thereof; (ii) the exercise or attempted exercise by any Released Party of any of its rights and remedies against the Borrower or the assets thereof on account of any Event of Default or otherwise; (iii) any other agreement or transaction between the Borrower and any Released Party relating in any way to the Promissory Notes and (iv) any Event of Default; and (c) expressly covenants and agrees never to institute or cause to be instituted or continue prosecution of any suit or other form of action or proceeding of any kind or nature whatsoever against any Released Party by reason of or in connection with any of the foregoing matters, claims or causes of action. 

 

 

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Section 6.     Acknowledgement of Indebtedness. As of June 28, 2016, the Borrower acknowledges and agrees that the Borrower is indebted to Healthtronics under the Promissory Notes in the aggregate principal amount of $5,372,743 plus accrued and unpaid interest since March 31, 2015. The Borrower acknowledges and agrees that it owes the amounts referred to above without defense, right of offset, set off, or counterclaims. 

 

Section 7.     Miscellaneous. 

 

(a)     This Amendment may be executed in two or more counterparts, each of which, when fully executed, shall be deemed an original; and all of said counterparts taken together shall be deemed to constitute one and the same Amendment. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.

 

(b) THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

 

[Signatures on Next Page]

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first set forth above.

 

 

	
 
	
Borrower:

 

SANUWAVE, INC.

 

By:                               

Name:      Lisa E. Sundstrom               

Title:      Chief Financial Officer          

 

 

Parent:

 

SANUWAVE HEALTH, INC.

 

By:                               

Name:      Lisa E. Sundstrom               

Title:      Chief Financial Officer          

 

 

Subsidiary:

 

SANUWAVE SERVICES, LLC

 

By:                               

Name:      Lisa E. Sundstrom               

Title:      Chief Financial Officer          

 

 

Healthtronics:

 

HEALTHTRONICS, INC.

 

 

By:                               

Name:                               

Title:Geospatial Corporation 10-Q

 

Exhibit 10.1

 

AGREEMENT
AND AMENDMENT

 

THIS AGREEMENT AND
AMENDMENT (“Agreement”) is dated as of August 12, 2016, by and between Geospatial Corporation, a Nevada corporation
(the “Company”), and David M. Truitt, an individual resident of Virginia (“Purchaser”).

 

RECITALS:

 

WHEREAS, the Company
issued and sold to Purchaser a Secured Promissory Note dated April 2, 2015 in the principal amount of $1,000,000, which was amended
pursuant to an Agreement and Amendment dated as of January 27, 2016 (as so amended, the “First Note”); and

 

WHEREAS, the Company
issued and sold to Purchaser its Secured Promissory Note dated January 27, 2016 in the principal amount of $250,000.00 (the “Second
Note”)

 

WHEREAS, the First
Note and the Second Note (collectively, the “Notes”) are secured by a first priority security interest in (i)
all of the Company’s assets pursuant to the terms of a Security Agreement dated as of April 2, 2015 between the Company and
Purchaser (the “Security Agreement”) and (ii) all of the assets of the Company’s wholly-owned subsidiary,
Geospatial Mapping Systems, Inc. (“Mapping”) pursuant to the terms of a Security Agreement dated as of April
2, 2015 between Mapping and Purchaser (the “Mapping Security Agreement”); and

 

WHEREAS, Purchaser
has agreed to extend the maturity date of each Note in consideration of the Company issuing to Purchaser warrants to purchase an
aggregate of 12,000,000 shares of the Company’s common stock, par value $.001 per share (“Common Stock”).

 

NOW, THEREFORE, in
consideration of the foregoing recitals and the respective representations and warranties, covenants and agreements contained
herein, and other good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows: 

 

1.             Amendment
to the Notes. Section 2.1 of each Note is hereby amended in its entirety to read as follows:

 

2.1       Maturity
Date. This Note will automatically mature and all unpaid principal and accrued and unpaid interest will be due and payable
on the earlier of (a) January 31, 2017 (the “Maturity Date”), or (b) the occurrence of an Event of Default (as
defined in Section 5).

 

2.             Waiver
of Event of Default. Any Event of Default (as defined in the Notes) resulting from the Company’s prior non-payment, if
any, of amounts due under the Notes is hereby waived by Purchaser. Neither Note shall accrue interest at the higher rate provided
for under Section 4.2 of such Note during the period from the date of such Event of Default to the date hereof.

 

3.             Issuance
of Warrants. Subject to the terms and conditions hereof, the Company hereby issues and delivers to Purchaser (i) a warrant
to purchase 10,000,000 shares of Common Stock in the form attached hereto as Exhibit A (the “Priced Warrant”)
and (ii) a warrant to purchase 2,000,000 shares of Common Stock in the form attached hereto as Exhibit B (the “Penny
Warrant” and, together with the Priced Warrant, the “Warrants”).

 

     

     

    

 

4.             Representations
and Warranties of the Company. The Company represents to Purchaser, as of the date hereof, as follows:

 

(a)       Organization
and Standing. The Company is a corporation duly organized and validly existing in good standing under the laws of its jurisdiction
of organization, with all requisite corporate power and authority to own and operate its properties and assets and to execute
and deliver this Agreement and the Warrants.

 

(b)       Authorization; Binding Obligation.
All corporate action on the part of the Company necessary for the authorization, execution and delivery of this Agreement and
the Warrants and the performance of all obligations of the Company hereunder and thereunder has been taken. This Agreement and
the Warrants constitute valid and binding obligations of the Company enforceable in accordance with their terms, except as limited
by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement
of creditors’ rights, and (ii) general principles of equity that restrict the availability of equitable remedies.

 

5.             Representations
and Warranties of Purchaser. Purchaser represents and warrants to the Company, as of the date hereof, as follows:

 

(a)       Requisite
Power and Authority. All action on the part of Purchaser necessary for the authorization of this Agreement and the performance
of all obligations of Purchaser hereunder has been taken. This Agreement constitutes the valid and binding obligation of Purchaser
enforceable in accordance with its terms, except as limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium
or other laws of general application affecting enforcement of creditors’ rights, and (ii) general principles of equity that
restrict the availability of equitable remedies.

 

(b)       Investment
Representations. Purchaser understands that the Note and the Warrant issued to Purchaser hereunder, and the shares of Common
Stock issuable upon exercise of the Warrants (the “Warrant Shares”) have not been registered under the Securities
Act of 1933, as amended (the “Securities Act”). Purchaser also understands that the Warrants are being issued
pursuant to an exemption from registration contained in the Securities Act based in part upon Purchaser’s representations contained
in this Agreement.

 

(c)       Experience.
Purchaser has such knowledge and experience in financial and business matters that Purchaser is capable of evaluating the merits
and risks of his acquisition of the Warrants and the Warrant Shares and of protecting Purchaser’s interests in connection therewith.

 

(d)       Investment.
Purchaser is acquiring the Warrants and the Warrant Shares for investment for his own account, not as a nominee or agent, and
not with a view to, or for resale in connection with, any distribution thereof, and Purchaser has no present intention of selling,
granting any participation in, or otherwise distributing the same.

 

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(e)       Information.
Purchaser has been furnished with all information which he deems necessary to evaluate the merits and risks of acquiring the Warrants
and has had the opportunity to ask questions concerning the Warrants and the Company and all questions posed have been answered
to his satisfaction. Purchaser has been given the opportunity to obtain any additional information he deems necessary to verify
the accuracy of any information obtained concerning the Warrants and the Company.

 

(f)       Accredited
Investor. Purchaser is an “accredited investor” within the meaning of Rule 501 promulgated under the Securities Act.

 

6.             Registration
Rights.

 

(a)       Definitions.
As used in this Section 6 and unless the context requires a different meaning, the following terms have the meanings indicated:

 

    “Register,”
“registered” and “registration” refer to a registration effected by preparing and filing
a registration statement in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration
statement or document by the Commission.

 

    “Registration
Expenses” means all expenses incurred by the Company in complying with this Section 6, including, without limitation,
all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses
and the expense of any special audits incident to or required by any such registration.

 

    “Selling Expenses”
means all underwriting discounts and broker commissions applicable to the sale.

 

(b)       Piggyback
Registration. The Company shall notify Purchaser in writing at least thirty (30) days prior to the filing of any registration
statement under the Securities Act for purposes of a public offering of securities of the Company (including, but not limited to,
registration statements relating to secondary offerings of securities of the Company, but excluding registration statements relating
to employee benefit plans or with respect to corporate reorganizations or other transactions under Rule 145 of the Securities Act),
which notice will specify the proposed offering price, the kind and number of securities proposed to be registered, the distribution
arrangements and such other information that at the time would be appropriate to include in such notice, and will afford Purchaser
an opportunity to include in such registration statement all or part of the Warrant Shares held by Purchaser on terms and conditions
at least as favorable as those applicable to the securities to be sold by the Company and by any other person thereunder. Purchaser
desires to include in any such registration statement all or any part of the Warrant Shares he shall, within fifteen (15) days
after the above-described notice from the Company, so notify the Company in writing. If Purchaser decides not to include some or
all of his Warrant Shares in any registration statement thereafter filed by the Company or decides to withdraw his Registrable
Shares from any underwriting or registration pursuant to Section 6(b)(i), Purchaser shall nevertheless continue to have
the right to include any Warrant Shares in any subsequent registration statement or registration statements as may be filed by
the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein.

 

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    (i)       Right
to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under
this Section 6(b) prior to the effectiveness of such registration whether or not Purchaser has elected to include Warrant
Shares in such registration. The Registration Expenses of such withdrawn registration shall be borne by the Company in accordance
with Section 6(b) hereof.

 

(c)       Expenses
of Registration. Except as specifically provided herein, all Registration Expenses incurred in connection with any registration,
qualification or compliance pursuant to Section 6(b) herein shall be borne by the Company. All Selling Expenses applicable
to Warrant Shares sold by Purchaser incurred in connection with any registrations hereunder shall be borne by Purchaser.

 

7.             Confirmations.
The Company confirms that the Notes, as amended hereby, remain outstanding without defense, set off, counterclaim, discount or
charge of any kind as of the date of this Agreement and the security interests granted pursuant to the Security Agreement and the
Mapping Security Agreement shall continue unimpaired by this Agreement and in full force and effect, and nothing in this Agreement
shall alter the priority of any such lien, security interest, mortgage, guarantee or pledge.

 

8.             No
Other Changes. Except as modified by this Agreement, each of the Notes, the Security Agreement and the Mapping Security Agreement
shall remain in full force and effect and is hereby in all respects ratified and confirmed.

 

9.             Miscellaneous.

 

(a)       Governing
Law; Arbitration. This Agreement and the Notes shall be governed, construed and interpreted in accordance with the laws of
the Commonwealth of Pennsylvania without giving effect to principles of conflicts of law and choice of law that would cause the
laws of any other jurisdiction to apply. Any dispute or claim arising to or in any way related to this Agreement or the Notes or
the rights and obligations of each of the parties hereto shall be settled by binding arbitration in Pittsburgh, Pennsylvania. All
arbitration shall be conducted in accordance with the rules and regulations of the American Arbitration Association (“AAA”).
AAA shall designate an arbitrator from an approved list of arbitrators following both parties’ review and deletion of those arbitrators
on the approved list having a conflict of interest with either party. The Company agrees that a final non-appealable judgment in
any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other
lawful manner.

 

(b)       Indemnification.
In consideration of Purchaser’s execution and delivery of this Agreement and acquisition the Warrants hereunder, and in addition
to all of the Company’s other obligations under this Agreement, the Company shall defend, protect, indemnify and hold harmless
Purchaser from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and
damages, and expenses in connection therewith (irrespective of whether Purchaser is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”),
incurred by Purchaser as a result of, or arising out of, or relating to (a) any material misrepresentation by Company or any material
breach of any covenant, agreement, obligation, representation or warranty by the Company contained in this Agreement, or (b) after
any applicable notice and/or cure periods, any breach or default in performance by the Company of any covenant or undertaking to
be performed by the Company hereunder. To the extent that the foregoing undertaking by the Company may be unenforceable for any
reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities,
which is permissible under applicable law.

 

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(c)       Successors
and Assigns. This Agreement may not be assigned, conveyed or transferred by either party without the prior written consent
of the other party. Subject to the foregoing, the rights and obligations of the Company and Purchaser under this Agreement shall
be binding upon and benefit their respective permitted successors, assigns, heirs, administrators and transferees. The terms and
provisions of this Agreement are for the sole benefit of the parties hereto and thereto and their respective permitted successors
and assigns, and are not intended to confer any third-party benefit on any other person. 

 

(d)       Severability.
In case any provision of the Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

 

(e)       Amendment
or Waiver. This Agreement, the Notes, the Warrants and the Security Agreement may be amended, and any term or provision of
this Agreement, the Notes and the Warrants may be waived, (either generally or in a particular instance and either retroactively
or prospectively) upon the written consent of the Company and Purchaser.

 

(f)       Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery
to the party to be notified, including, with respect to Purchaser, upon delivery by electronic mail to Purchaser’s e-mail address;
(ii) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business
day; (iii) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or
(iv) the next business day after deposit with a nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent to the Company and to Purchaser at the address or facsimile number
set forth on such party’s signature page hereof or at such other address as the Company or Purchaser may designate by 10 days’
advance written notice to the other parties hereto.

 

(g)       Expenses.
Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance
of this Agreement and the Warrants.

 

(h)       Titles
and Subtitles. The titles of the sections and subsections of the Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

 

(i)       Counterparts.
This Agreement may be executed in any number of counterparts (and by facsimile or .PDF), each of which shall be an original, but
all of which together shall constitute one instrument.

 

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IN WITNESS WHEREOF
the parties hereto have executed this Agreement and Amendment as of the date set forth in the first paragraph hereof.

           

	 	COMPANY:	 
	 	 	 
	 	GEOSPATIAL CORPORATION	 
	 	 	 
	 	By:	/s/ Mark Smith 	 
	 	 	Mark Smith	 
	 	 	Chief Executive Officer	 
	 	 	 	 
	 	Address:	 
	 	 	 
	 	229 Howes Run Road	 
	 	Sarver, PA 16055	 
	 	 	 
	 	PURCHASER:	 
	 	 	 
	 	/s/ David M. Truitt	 
	 	David M. Truitt	 
	 	 	 
	 	Address:	 
	 	 	 
	 	Discover Technologies,
LLC

13241 Woodland Park Road Suite 

610 Herndon, VA 20171 United States	 

  

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EXHIBIT A

 

FORM OF PRICED WARRANT

 

    

     

    

  

NEITHER THIS WARRANT NOR THE SECURITIES
ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.
NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY BE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR (B) IN A TRANSACTION WHICH IS
EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS.

 

Warrant Issue Date: August 12, 2016 

 

COMMON STOCK PURCHASE WARRANT

 

For
value received, Geospatial Corporation (the “Company”), a Nevada corporation, hereby certifies that David M.
Truitt (the “Holder”) or his permitted assign(s) is entitled to purchase from the Company, at any time or from
time to time during the Exercise Period (as defined below), in whole or in part, TWO MILLION (2,000,000) shares of the Company’s
common stock, par value $.001 per share (“Common Stock” or “Warrant Shares”) at a price the
lower of, 75% of the offering price per share in the Company’s next capital raise (or series of capital raises) over $3
million, or $0.25 per share (the “Exercise Price”). This Warrant is issued pursuant to that certain Agreement
and Amendment dated as of August 12, 2016, by and between the Company and the Holder (the “Agreement and Amendment”).
This Warrant is subject to the terms of the Agreement and Amendment and the following additional terms and conditions.

 

1.             Certain
Definitions.

 

(a)          “Change
in Control“ means any sale of capital stock of the Company or consolidation or merger of the Company with or into any
other corporation or other entity or person, or any other corporate reorganization, in which the stockholders of the Company immediately
prior to such sale, consolidation, merger or reorganization, do not hold at least a majority of the resulting or surviving corporation’s
voting power immediately after such consolidation, merger or reorganization, or the sale, lease, or other disposition of all or
substantially all of the assets of the Company.

 

(b)          “Exercise
Period” means the period commencing on the date of this Warrant and ending on 5:00 p.m. (prevailing local time at the
principal executive office of the Company) on the tenth anniversary of the date of this Warrant.

 

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(c)          “Fair
Market Value” means, for any date, the price determined by the first of the following clauses that applies: (a) if the
Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such
date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m.(New York City time) to 4:02 p.m. (New York City time)), (b) if the OTC Markets, Inc.
OTCQB is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date)
on the OTCQB, (c) if the Common Stock is not then listed or quoted for trading on the OTCQB and if prices for the Common Stock
are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding
to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the
Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

(d)          “Trading
Day” means (x) if the Common Stock is not listed on the NYSE Euronext or NYSE AMEX but sale prices of the Common Stock
are reported on Nasdaq Global Market, Nasdaq Global Select Market, Nasdaq Capital Market or another automated quotation system,
a day on which trading is reported on the principal automated quotation system on which sales of the Common Stock are reported,
(y) if the Common Stock is listed on the NYSE Euronext or NYSE AMEX, a day on which there is trading on such stock exchange, or
(z) if the foregoing provisions are inapplicable, a day on which quotations are reported by National Quotation Bureau Incorporated.

 

(e)          “Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange or the OTCQB operated by OTC Markets, Inc. (or any successors to any of the foregoing).

 

(f)          
“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if
the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for
the preceding 10 Trading Days on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time), (b) if the OTCQB operated
by OTC Markets, Inc. is not a Trading Market, the volume weighted average price of the Common Stock for the nearest preceding
10 days on the OTCQB, (c) if the Common Stock is not then listed or quoted for trading on the OTCQB and if prices for the Common
Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the last reported bid price averaged over the preceding 10 days per share of
the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by the
Company’s board of directors.

 

    3

     

    

 

2.             Exercise
of Warrant.

 

(a)          The
purchase rights represented by this Warrant are exercisable by the Holder, in whole or in part, during the Exercise Period by
delivery of the form of Notice of Exercise attached hereto as Annex A (the “Notice of Exercise”) duly
completed and executed by the Holder by e-mail or facsimile, to the Company at its principal executive office. In the event of
an exercise for cash, the Holder shall deliver to the Company payment in cash, in lawful money of the United States of America,
including by certified or official bank check made payable to the order of the Company or by wire transfer of immediately available
funds to an account designated by the Company, of an amount equal to the Exercise Price multiplied by the number of shares of
Common being purchased pursuant to such exercise of the Warrant within two (2) business days of delivery of the Notice of Exercise.
The number of shares of Common Stock to be issued upon each exercise of this Warrant shall be as set forth in the Notice of Exercise
delivered to the Company by the Holder; provided that the Notice of Exercise is submitted by facsimile or e-mail (or by other
means resulting in, or reasonably expected to result in, notice) to the Company before 6:00 p.m., New York, New York time on such
exercise date. 

 

(b)          This
Warrant may be exercised for less than the full number of shares of Common Stock calculated above, provided that
this Warrant may not be exercised in part for less than a whole number of shares of Common Stock. Upon any such partial exercise,
the Company at its expense will forthwith issue to the Holder a new Warrant or Warrants of like tenor exercisable for the number
of shares of Common Stock as to which rights have not been exercised (subject to adjustment as herein provided), such Warrant
or Warrants to be issued in the name of the Holder or its nominee. 

 

(c)          As
soon as practicable after the exercise of this Warrant and in any event within ten (10) business days after the Exercise Price
is paid as set forth above for an exercise for cash, the Company, at its expense, will cause to be issued in the name of and delivered
to the Holder a certificate or certificates for the number of duly authorized, validly issued, fully paid and non-assessable shares
of Common Stock to which the Holder shall be entitled upon such exercise, plus, in lieu of any fractional share to which the Holder
would otherwise be entitled, cash in an amount determined in accordance with Section 3(d) hereof. The Company agrees
that the shares so purchased shall be deemed to be issued to the Holder as the record owner of such shares as of the close of
business on the date on which this Warrant shall have been surrendered and payment made for such shares as aforesaid.

 

(d)          Prior
to the exercise of this Warrant, the Holder shall not be entitled to any rights of a stockholder of the Company with respect to
shares for which this Warrant shall be exercisable, including, without limitation, the right to vote, to receive dividends or
other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of
the Company. 

 

    4

     

    

 

(e)          In
the event that the Company proposes to engage in a Change in Control, it shall give the Holder written of its intention not less
than ten (10) days prior to the date of the proposed closing of such transaction. The notice shall describe the material terms
and conditions upon which the Company proposes to consummate such transaction.

 

(f)           Cashless
Exercise. If at the time of exercise hereof there is no effective registration statement registering the resale of the Warrant
Shares, or the prospectus contained therein is not available for the resale of the Warrant Shares by the Holder, then this Warrant
may only be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall
be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by
(A), where:

 

(A)
= the VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless
exercise,” as set forth in the applicable Notice of Exercise; 

 

(B)
= the Exercise Price of this Warrant, as adjusted hereunder; and 

 

(X) = the number of
Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise
were by means of a cash exercise rather than a cashless exercise. 

 

(g)          Buy-In. In addition to any other rights available to the Holder, if the Company fails to deliver to a Holder the Warrant Shares as
required pursuant to this Warrant, and the Holder purchases (in an open market transaction or otherwise) shares of Common Stock
(or a broker or trading counterparty through which the Holder has agreed to sell shares makes such purchase) to deliver in satisfaction
of a sale by such Holder of the Warrant Shares which the Holder was entitled to receive from the Company (a “Buy-In”),
then the Company shall pay in cash to the Holder (in addition to honoring its obligation to deliver to Holder a certificate or
certificates representing the Warrant Shares and any remedies available to or elected by the Holder) the amount by which (A) the
Holder’s total purchase price (including brokerage commissions, if any) for the shares of common stock so purchased exceeds
(B) the aggregate Exercise Price of the Warrant Shares required to have been delivered together with interest thereon at a rate
of 5% per annum, accruing until such amount and any accrued interest thereon is paid in full (which amount shall be paid as liquidated
damages and not as a penalty). For example, if a Holder purchases shares of Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to Warrant Shares with an aggregate Exercise Price of $10,000 to have been received upon exercise
of this Warrant, the Company shall be required to pay the Holder $1,000, plus interest. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of the Buy-In, along with the appropriate supporting documentation
for such purchase. 

 

    5

     

    

 

3.             Adjustments.

 

(a)          Adjustments
Generally. In order to prevent dilution of the rights granted hereunder in the specific circumstances contemplated by this
Section 3, the Exercise Price shall be subject to adjustment from time to time in accordance with this Section 3.
Upon each adjustment of the Exercise Price pursuant to Section 3(b) and 3(c) (but not Section 3(d)), the Holder shall thereafter
be entitled to acquire upon exercise, at the Exercise Price resulting from such adjustment, the number of shares of Common Stock
determined by (i) multiplying (A) the Exercise Price in effect immediately prior to such adjustment by (B) the number of shares
of Common Stock issuable upon exercise hereof immediately prior to such adjustment, and (ii) dividing the product thereof by the
Exercise Price resulting from such adjustment; provided that no such adjustments shall be made in the Exercise Price
and/or the number of shares of Common Stock subject to this Warrant if the conversion ratio of the Common Stock already reflects
such event.

 

(b)          Subdivisions,
Stock Dividends and Recapitalizations. In case the Company shall at any time subdivide its outstanding shares of Common Stock
into a greater number of shares (including, without limitation, through any stock split effected by means of a dividend on the
Common Stock which is payable in Common Stock), the Exercise Price in effect immediately prior to such subdivision shall be proportionately
reduced, and, conversely, in case the outstanding shares of Common Stock of the Company shall be combined into a smaller number
of shares, the Exercise Price in effect immediately prior to such combination shall be proportionately increased, unless the conversion
ratio of such Common Stock already reflects such event. 

 

(c)          Reorganization,
Reclassification, Consolidation, Merger or Sale of Assets. If any capital reorganization or reclassification of the capital
stock of the Company, or consolidation or merger of the Company with another corporation, or the sale of a significant amount
of assets to another corporation shall be effected in such a way that (i) does not constitute a Change in Control, and (ii) holders
of Common Stock shall be entitled to receive stock, securities, cash or other property with respect to or in exchange for Common
Stock, then, as a condition of such reorganization, reclassification, consolidation, merger or sale, lawful and adequate provision
shall be made whereby the Holder shall have the right to acquire and receive upon exercise of this Warrant such shares of stock,
securities, cash or other property of the successor corporation that a holder of the shares deliverable upon exercise of this
Warrant would have been entitled to receive in such reorganization, reclassification, consolidation, merger or sale if this Warrant
had been exercised immediately before such reorganization, reclassification, consolidation, merger or sale. The foregoing provisions
shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers or sales and to the stock or securities
of any other corporation that are at the time receivable upon the exercise of this Warrant. In all events, appropriate adjustments
(as determined by the Board of Directors of the Company) shall be made in the application of the provisions of this Warrant with
respect to the rights and interests of the Holder after the transaction, to the end that the provisions of this Warrant shall
be applicable after that event, as near as reasonably may be, in relation to any shares or other property deliverable after that
event upon exercise of this Warrant. 

 

    6

     

    

 

(d)          Share
Issuance. If, at any time after the date hereof while the Warrant is outstanding, the Company shall make a Dilutive Issuance
(as defined below), for a price per share that is less than the Exercise Price that would be in effect at the time of such Dilutive
Issuance, then, and thereafter successively upon each such Dilutive Issuance, the Exercise Price shall be reduced to the price
per share in the Dilutive Issuance and if more than one Dilutive Issuance occurs while this Warrant is exercisable, the Exercise
Price shall be reduced to the price per share in the Dilutive Issuance with the lowest price per share. In such event, the number
of shares of Common Stock which may be acquired upon exercise of this Warrant shall not change. The reduction of the Exercise
Price described in this paragraph is in addition to the other rights hereunder. 

 

A “Dilutive
Issuance” shall mean the issuance by the Company, other than an Excepted Issuance (as defined below) of any Common Stock,
security or debt instrument carrying the right to convert such security or debt instrument into Common Stock, or of any warrant,
right or option to purchase Common Stock with a purchase price, exercise price or conversion price less than the Exercise Price.
A Dilutive Issuance for no consideration will be deemed issuable or to have been issued for $0.001 per share of Common Stock. 

 

For purposes of this Warrant, “Excepted
Issuance” shall mean (i) any issuance or sale by the Company of its securities as full or partial consideration in connection
with a strategic merger, acquisition, consolidation or purchase of the securities or assets of a corporation or other entity (or
any division or business unit thereof) so long as such issuances are not for the purpose of raising capital, (ii) any issuance
of securities in connection with strategic supply, sale or license agreements and other partnering arrangements so long as such
issuances are not for the purpose of raising capital, (iii) any issuance of securities upon the conversion or exercise of options
or convertible securities issued on or prior to the date hereof, (iv) any issuance of shares of Common Stock in connection with
employee benefit plans and compensation related arrangements in the ordinary course and consistent with past practice approved
by the Board of Directors or (v) the issuance to the Holder of the Penny Warrant (as defined in the Agreement and Amendment) and
the issuance of shares of Common Stock upon the exercise thereof. 

 

(e)          Fractional
Shares. The Company shall not issue fractions of shares of Common Stock upon exercise of this Warrant or scrip in lieu thereof.
If any fraction of a share of Common Stock would, except for the provisions of this Section 3(e), be issuable upon exercise
of this Warrant, then the Company shall in lieu thereof pay to the person entitled thereto an amount in cash equal to the current
value of such fraction, calculated to the nearest one-hundredth (1/100) of a share, to be computed on the basis of the fair market
value per share as determined in good faith by the Board of Directors of the Company.

 

    7

     

    

 

(e)          Certificate
as to Adjustments. Whenever the Exercise Price shall be adjusted as provided in Section 3 hereof, the Company shall
promptly compute such adjustment and furnish to the Holder a certificate setting forth such adjustment and showing in reasonable
detail the facts requiring such adjustment, the Exercise Price that will be effective after such adjustment and the number of
shares and the amount, if any, of other property that at the time would be received upon the exercise of this Warrant.

 

4.             Reservation
of Stock Issuable on Exercise of Warrants. The Company shall at all times reserve and keep available out of its authorized
but unissued stock, solely for the issuance and delivery upon the exercise of this Warrant and other similar Warrants, such number
of its duly authorized shares of Common Stock as from time to time shall be issuable upon the exercise of this Warrant and other
similar Warrants. All of the shares of Common Stock issuable upon exercise of this Warrant and other similar Warrants, when issued
and delivered in accordance with the terms hereof and thereof, will be duly authorized, validly issued, fully paid and non-assessable,
subject to no lien or other encumbrance other than restrictions on transfer arising under applicable securities laws and restrictions
imposed by Section 6(a) hereof and the Agreements to which reference is made in Section 6(c) hereof.

 

5.             Replacement
of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement reasonably satisfactory
to the Company (with surety if reasonably required), or (in the case of mutilation) upon surrender and cancellation thereof, the
Company will issue, in lieu thereof, a new Warrant of like tenor and amount. 

 

6.             Negotiability.
This Warrant is issued upon the following terms: 

 

(a)          Transfer.
By acceptance hereof, the Holder acknowledges and agrees that the Holder is acquiring the Warrant and the shares of Common Stock
issuable upon exercise hereof for investment for its own account, not as a nominee or agent, and not with a view to, or for resale
in connection with, any distribution thereof, and Holder has no present intention of selling, granting any participation in, or
otherwise distributing the same.

 

(b)          Subject
to compliance with clause (e) of this Section 6, this Warrant and all rights hereunder are transferable, in whole or in part,
upon the books of the Company by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall
be made and delivered by the Company, of the same tenor and date as this Warrant but registered in the name of one or more transferees,
upon surrender of this Warrant, duly endorsed, to the Company. All expenses (other than stock transfer taxes) and other charges
payable in connection with the preparation, execution and delivery of the new warrants pursuant to this Section 6 shall be paid
by the Company.

 

(c)          Agreements. As a condition to the Company’s obligation to issue
shares of Common Stock upon exercise hereof, the Holder shall execute the Notice of Exercise attached hereto as Annex A. 

 

    8

     

    

 

(d)          Transfer
Taxes. The Company shall not be required to pay any federal or state transfer tax or charge that may be payable in respect
of any transfer involved in the transfer or delivery of this Warrant or the issuance or delivery of certificates for Common Stock
in a name other than that of the Holder or to issue or deliver any certificates for Common Stock upon the exercise of this Warrant
until any and all such taxes and charges shall have been paid by the Holder or until it has been established to the Company’s
reasonable satisfaction that no such tax or charge is due. 

 

(e)          Compliance
with Securities Laws. The Holder, by acceptance hereof, acknowledges that this Warrant, the shares of Common Stock to be issued
upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for
investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant, any shares of Common Stock to be issued
upon exercise hereof except under circumstances that will not result in a violation of applicable federal and state securities
laws.

 

7.            Subdivision
of Rights. Subject to Section 6, this Warrant (as well as any new Warrants issued pursuant to the provisions of this
Section 7) is exchangeable, upon the surrender hereof by the Holder, at the principal executive office of the Company for
any number of new Warrants of like tenor and date representing in the aggregate the right to subscribe for and purchase the number
of shares of Common Stock of the Company which may be subscribed for and purchased hereunder. 

 

8.            Miscellaneous. 

 

(a)          Notices.
Any notice or other communication required or permitted to be given hereunder shall be in writing by facsimile, e-mail, mail or
personal delivery and shall be effective upon delivery of such notice. The addresses for such communications shall be to the addresses
as shown on the books of the Company or to the Company at the address set forth in the Agreement and Amendment. A party may from
time to time change the address to which notices to it are to be delivered or mailed hereunder by notice in accordance with the
provisions of this Section 8(a).

 

(b)          Books
of the Company. The Company may treat the holder hereof as appearing on the Company’s books at any time as the holder for
all purposes. 

 

(c)          Headings.
The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise affect the meaning hereof.

 

(d)          Amendment;
Waiver. This Warrant and any term hereof may be amended, waived, discharged or terminated only by an instrument in writing
signed by the party against whom enforcement of such amendment, waiver, discharge or termination is sought. No waivers of any
term, condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such term, condition or provision.

 

    9

     

    

 

(e)          Benefits
of this Warrant. Nothing in this Warrant shall be construed to give any person or corporation other than the Company and the
Holder any legal or equitable right, remedy or claim under this Warrant and this Warrant shall be for the sole and exclusive benefit
of the Company and the Holder and any other permitted holder or holders of the Warrant. 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 

    10

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed and delivered by its authorized officer, as of the date first above written. 

	 	 	 
	 	Geospatial Corporation
	 	 	 
	 	By:	 	 
	 	Mark Smith
	 	Chief Executive
Officer

 

    11

     

    

 

ANNEX A

 

NOTICE OF EXERCISE

 

To:       GEOSPATIAL
CORPORATION

 

(1)       The
undersigned hereby elects to exercise the attached Warrant (i) for and to purchase thereunder, ______ shares of Common Stock, and
herewith makes payment therefor of $_______ or (ii) for and to receive thereunder _______________ shares of Common Stock pursuant
to Section 2(f) of the Warrant where A= _______________, B= ______________ and X= ______________________..

 

(2)       Please
issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name
as is specified below:

 

	 	 	 
	 	(Name)	 
	 	 	 
	 	 	 
	 	(Address)	 
	 	 	 

 

(3)       Please
issue a new Warrant for the unexercised portion of the attached Warrant in the name of the undersigned or in such other name as
is specified below:

	 	 	 	 	 
	Dated:	 	 	 	 
	 	 	 	 	(Name)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Signature)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Address)
	 	 	 	 	 
	Dated:	 	 	 	 
	 	 	 	 	 
	 	 	 
	(Signature)	 	 

 

     

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

FOR VALUE
RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to
_______________________________________________ whose address is ______________________________________________________

 

Dated: ______________

 

	 	Holder’s Signature:	 	 
	 	 	 	 
	 	Holder’s Address:	 	 
	 	 	 	 
	 	 	 	 

 

	Signature Guaranteed:	 	 

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.

 

    2 

     

    

 

EXHIBIT B

 

FORM OF PENNY WARRANT

 

    3 

     

    

 

NEITHER THIS WARRANT NOR THE SECURITIES
ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.
NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY BE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR (B) IN A TRANSACTION WHICH IS
EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS.

  

Warrant Issue Date: August 12, 2016

 

COMMON STOCK PURCHASE WARRANT

 

For value received,
Geospatial Corporation (the “Company”), a Nevada corporation, hereby certifies that David M. Truitt (the “Holder”)
or his permitted assign(s) is entitled to purchase from the Company, at any time or from time to time during the Exercise Period
(as defined below), in whole or in part, TEN MILLION (10,000,000) shares of the Company’s common stock, par value $.001 per share
(“Common Stock” or “Warrant Shares”)
at a price of $0.01 per share (the “Exercise Price”). This Warrant is issued pursuant to that certain Agreement
and Amendment dated as of August 12, 2016, by and between the Company and the Holder (the “Agreement and Amendment”).
This Warrant is subject to the terms of the Agreement and Amendmentand the following additional terms and conditions.

 

1.             Certain
Definitions. 

 

(a)          “Change
in Control” means any sale of capital stock of the Company or consolidation or merger of the Company with or into any
other corporation or other entity or person, or any other corporate reorganization, in which the stockholders of the Company immediately
prior to such sale, consolidation, merger or reorganization, do not hold at least a majority of the resulting or surviving corporation’s
voting power immediately after such consolidation, merger or reorganization, or the sale, lease, or other disposition of all or
substantially all of the assets of the Company.

 

(b)          “Exercise
Period” means the period commencing on the date of this Warrant and ending on 5:00 p.m. (prevailing local time at the
principal executive office of the Company) on the fourth anniversary of the date of this Warrant.

 

    4 

     

    

 

(c)
          “Fair Market Value” means, for any date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock
for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported
by Bloomberg L.P. (based on a Trading Day from 9:30 a.m.(New York City time) to 4:02 p.m. (New York City time)), (b) if the OTC
Markets, Inc. OTCQB is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the OTCQB, (c) if the Common Stock is not then listed or quoted for trading on the OTCQB and if prices for the
Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported,
or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

(d)
         “Trading Day” means (x) if the Common Stock is not listed on the NYSE Euronext or NYSE AMEX but sale prices
of the Common Stock are reported on Nasdaq Global Market, Nasdaq Global Select Market, Nasdaq Capital Market or another automated
quotation system, a day on which trading is reported on the principal automated quotation system on which sales of the Common Stock
are reported, (y) if the Common Stock is listed on the NYSE Euronext or NYSE AMEX, a day on which there is trading on such stock
exchange, or (z) if the foregoing provisions are inapplicable, a day on which quotations are reported by National Quotation Bureau
Incorporated.

 

(e)
         “Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted
for trading on the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select
Market, the New York Stock Exchange or the OTCQB operated by OTC Markets, Inc. (or any successors to any of the foregoing).

 

2.             Exercise
of Warrant.

 

(a)            The
purchase rights represented by this Warrant are exercisable by the Holder, in whole or in part, during the Exercise Period by delivery
of the form of Notice of Exercise attached hereto as Annex A (the “Notice of Exercise”) duly completed
and executed by the Holder by e-mail or facsimile, to the Company at its principal executive office. The Holder shall deliver to
the Company payment in cash, in lawful money of the United States of America, including by certified or official bank check made
payable to the order of the Company or by wire transfer of immediately available funds to an account designated by the Company,
of an amount equal to the Exercise Price multiplied by the number of shares of Common being purchased pursuant to such exercise
of the Warrant within two (2) business days of delivery of the Notice of Exercise. The number of shares of Common Stock to be issued
upon each exercise of this Warrant shall be as set forth in the Notice of Exercise delivered to the Company by the Holder; provided
that the Notice of Exercise is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result
in, notice) to the Company before 6:00 p.m., New York, New York time on such exercise date.

 

    5 

     

    

 

(b)          This
Warrant may be exercised for less than the full number of shares of Common Stock calculated above, provided that
this Warrant may not be exercised in part for less than a whole number of shares of Common Stock. Upon any such partial exercise,
the Company at its expense will forthwith issue to the Holder a new Warrant or Warrants of like tenor exercisable for the number
of shares of Common Stock as to which rights have not been exercised (subject to adjustment as herein provided), such Warrant
or Warrants to be issued in the name of the Holder or its nominee.

 

(c)          As
soon as practicable after the exercise of this Warrant and in any event within ten (10) business days after the Exercise Price
is paid as set forth above for an exercise for cash, the Company, at its expense, will cause to be issued in the name of and delivered
to the Holder a certificate or certificates for the number of duly authorized, validly issued, fully paid and non-assessable shares
of Common Stock to which the Holder shall be entitled upon such exercise, plus, in lieu of any fractional share to which the Holder
would otherwise be entitled, cash in an amount determined in accordance with Section 3(d) hereof. The Company agrees
that the shares so purchased shall be deemed to be issued to the Holder as the record owner of such shares as of the close of business
on the date on which this Warrant shall have been surrendered and payment made for such shares as aforesaid.

 

(d)          Prior
to the exercise of this Warrant, the Holder shall not be entitled to any rights of a stockholder of the Company with respect to
shares for which this Warrant shall be exercisable, including, without limitation, the right to vote, to receive dividends or
other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of
the Company.

 

(e)          In
the event that the Company proposes to engage in a Change in Control, it shall give the Holder written notice of its intention
not less than ten (10) days prior to the date of the proposed closing of such transaction. The notice shall describe the material
terms and conditions upon which the Company proposes to consummate such transaction.

 

3.             Adjustments.

 

(a)          Adjustments
Generally. The Exercise Price shall be subject to adjustment from time to time in accordance with this Section 3. Upon
each adjustment of the Exercise Price pursuant to Section 3(b) and 3(c), the Holder shall thereafter be entitled to acquire
upon exercise, at the Exercise Price resulting from such adjustment, the number of shares of Common Stock determined by (i) multiplying
(A) the Exercise Price in effect immediately prior to such adjustment by (B) the number of shares of Common Stock issuable upon
exercise hereof immediately prior to such adjustment, and (ii) dividing the product thereof by the Exercise Price resulting from
such adjustment; provided that no such adjustments shall be made in the Exercise Price and/or the number of shares
of Common Stock subject to this Warrant if the conversion ratio of the Common Stock already reflects such event.

 

    6 

     

    

 

(b)          Subdivisions,
Stock Dividends and Recapitalizations. In case the Company shall at any time subdivide its outstanding shares of Common Stock
into a greater number of shares (including, without limitation, through any stock split effected by means of a dividend on the
Common Stock which is payable in Common Stock), the Exercise Price in effect immediately prior to such subdivision shall be proportionately
reduced, and, conversely, in case the outstanding shares of Common Stock of the Company shall be combined into a smaller number
of shares, the Exercise Price in effect immediately prior to such combination shall be proportionately increased, unless the conversion
ratio of such Common Stock already reflects such event.

 

(c)          Reorganization,
Reclassification, Consolidation, Merger or Sale of Assets. If any capital reorganization or reclassification of the capital
stock of the Company, or consolidation or merger of the Company with another corporation, or the sale of a significant amount of
assets to another corporation shall be effected in such a way that (i) does not constitute a Change in Control, and (ii) holders
of Common Stock shall be entitled to receive stock, securities, cash or other property with respect to or in exchange for Common
Stock, then, as a condition of such reorganization, reclassification, consolidation, merger or sale, lawful and adequate provision
shall be made whereby the Holder shall have the right to acquire and receive upon exercise of this Warrant such shares of stock,
securities, cash or other property of the successor corporation that a holder of the shares deliverable upon exercise of this Warrant
would have been entitled to receive in such reorganization, reclassification, consolidation, merger or sale if this Warrant had
been exercised immediately before such reorganization, reclassification, consolidation, merger or sale. The foregoing provisions
shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers or sales and to the stock or securities
of any other corporation that are at the time receivable upon the exercise of this Warrant. In all events, appropriate adjustments
(as determined by the Board of Directors of the Company) shall be made in the application of the provisions of this Warrant with
respect to the rights and interests of the Holder after the transaction, to the end that the provisions of this Warrant shall be
applicable after that event, as near as reasonably may be, in relation to any shares or other property deliverable after that event
upon exercise of this Warrant.

 

(d)          Fractional
Shares. The Company shall not issue fractions of shares of Common Stock upon exercise of this Warrant or scrip in lieu thereof.
If any fraction of a share of Common Stock would, except for the provisions of this Section 3(d), be issuable upon exercise
of this Warrant, then the Company shall in lieu thereof pay to the person entitled thereto an amount in cash equal to the current
value of such fraction, calculated to the nearest one-hundredth (1/100) of a share, to be computed on the basis of the fair market
value per share as determined in good faith by the Board of Directors of the Company.

 

(e)          Certificate
as to Adjustments. Whenever the Exercise Price shall be adjusted as provided in Section 3 hereof, the Company shall
promptly compute such adjustment and furnish to the Holder a certificate setting forth such adjustment and showing in reasonable
detail the facts requiring such adjustment, the Exercise Price that will be effective after such adjustment and the number of shares
and the amount, if any, of other property that at the time would be received upon the exercise of this Warrant.

 

    7 

     

    

 

4.             Reservation
of Stock Issuable on Exercise of Warrants. The Company shall at all times reserve and keep available out of its authorized
but unissued stock, solely for the issuance and delivery upon the exercise of this Warrant and other similar Warrants, such number
of its duly authorized shares of Common Stock as from time to time shall be issuable upon the exercise of this Warrant and other
similar Warrants. All of the shares of Common Stock issuable upon exercise of this Warrant and other similar Warrants, when issued
and delivered in accordance with the terms hereof and thereof, will be duly authorized, validly issued, fully paid and non-assessable,
subject to no lien or other encumbrance other than restrictions on transfer arising under applicable securities laws and restrictions
imposed by Section 6(a) hereof and the Agreements to which reference is made in Section 6(c) hereof.

 

5.             Replacement
of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement reasonably satisfactory to
the Company (with surety if reasonably required), or (in the case of mutilation) upon surrender and cancellation thereof, the Company
will issue, in lieu thereof, a new Warrant of like tenor and amount.

 

6.             Negotiability.
This Warrant is issued upon the following terms:

 

(a)          Transfer.
By acceptance hereof, the Holder acknowledges and agrees that the Holder is acquiring the Warrant and the shares of Common Stock
issuable upon exercise hereof for investment for its own account, not as a nominee or agent, and not with a view to, or for resale
in connection with, any distribution thereof, and Holder has no present intention of selling, granting any participation in, or
otherwise distributing the same.

 

(b)          Subject
to compliance with clause (e) of this Section 6, this Warrant and all rights hereunder are transferable, in whole or in part, upon
the books of the Company by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall be made
and delivered by the Company, of the same tenor and date as this Warrant but registered in the name of one or more transferees,
upon surrender of this Warrant, duly endorsed, to the Company. All expenses (other than stock transfer taxes) and other charges
payable in connection with the preparation, execution and delivery of the new warrants pursuant to this Section 6 shall be paid
by the Company.

 

(c)          Agreements.
As a condition to the Company’s obligation to issue shares of Common Stock upon exercise hereof, the Holder shall execute the Notice
of Exercise attached hereto as Annex A.

 

(d)          Transfer
Taxes. The Company shall not be required to pay any federal or state transfer tax or charge that may be payable in respect
of any transfer involved in the transfer or delivery of this Warrant or the issuance or delivery of certificates for Common Stock
in a name other than that of the Holder or to issue or deliver any certificates for Common Stock upon the exercise of this Warrant
until any and all such taxes and charges shall have been paid by the Holder or until it has been established to the Company’s reasonable
satisfaction that no such tax or charge is due.

 

    8 

     

    

 

(e)          Compliance
with Securities Laws. The Holder, by acceptance hereof, acknowledges that this Warrant, the shares of Common Stock to be issued
upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment,
and that the Holder will not offer, sell or otherwise dispose of this Warrant, any shares of Common Stock to be issued upon exercise
hereof except under circumstances that will not result in a violation of applicable federal and state securities laws.

 

7.             Subdivision
of Rights. Subject to Section 6, this Warrant (as well as any new Warrants issued pursuant to the provisions of this
Section 7) is exchangeable, upon the surrender hereof by the Holder, at the principal executive office of the Company for
any number of new Warrants of like tenor and date representing in the aggregate the right to subscribe for and purchase the number
of shares of Common Stock of the Company which may be subscribed for and purchased hereunder.

 

8.             Miscellaneous.

 

(a)          Notices.
Any notice or other communication required or permitted to be given hereunder shall be in writing by facsimile, e-mail, mail or
personal delivery and shall be effective upon delivery of such notice. The addresses for such communications shall be to the addresses
as shown on the books of the Company or to the Company at the address set forth in the Agreement and Amendment. A party may from
time to time change the address to which notices to it are to be delivered or mailed hereunder by notice in accordance with the
provisions of this Section 8(a).

  

(b)          Books
of the Company. The Company may treat the holder hereof as appearing on the Company’s books at any time as the holder for all
purposes.

 

(c)          Headings.
The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise affect the meaning hereof.

  

(d)          Amendment;
Waiver. This Warrant and any term hereof may be amended, waived, discharged or terminated only by an instrument in writing
signed by the party against whom enforcement of such amendment, waiver, discharge or termination is sought. No waivers of any term,
condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or construed as, a further or continuing
waiver of any such term, condition or provision.

 

(e)          Benefits
of this Warrant. Nothing in this Warrant shall be construed to give any person or corporation other than the Company and the
Holder any legal or equitable right, remedy or claim under this Warrant and this Warrant shall be for the sole and exclusive benefit
of the Company and the Holder and any other permitted holder or holders of the Warrant.

 

    9 

     

    

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed and delivered by its authorized officer, as of the date first above written.

	 	 	 
	Geospatial Corporation
	 	 	 
	By:	 	 
	 	Mark Smith	 
	 	Chief Executive Officer	 

 

    10 

     

    

 

ANNEX A

 

NOTICE OF EXERCISE

 

To:      GEOSPATIAL
CORPORATION

 

(1)       The
undersigned hereby elects to exercise the attached Warrant (i) for and to purchase thereunder, ______ shares of Common Stock, and
herewith makes payment therefor of $_______ .

 

(2)       Please
issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name
as is specified below:

 

	 	 	 
	 	(Name)	 
	 	 	 
	 	 	 
	 	(Address)	 
	 	 	 

 

(3)       Please
issue a new Warrant for the unexercised portion of the attached Warrant in the name of the undersigned or in such other name as
is specified below:

	 	 	 	 	 
	Dated:	 	 	 	 
	 	 	 	 	(Name)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Signature)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Address)
	 	 	 	 	 
	Dated:	 	 	 	 
	 	 	 	 	 
	 	 	 
	(Signature)	 	 

 

     

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

  

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to _______________________________________________
whose address is _____________________________________________________

 

Dated: ______________

 

	 	Holder’s Signature:	 	 
	 	 	 	 
	 	Holder’s Address:	 	 
	 	 	 	 
	 	 	 	 

 

	Signature Guaranteed:	 	 

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.

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