Document:

Geospatial Corporation S-1

Exhibit 10.3

 

GEOSPATIAL
HOLDINGS, INC.

  

 

 

2007 STOCK
OPTION PLAN 

(AS AMENDED
AND RESTATED APRIL 25, 2008)

 

GEOSPATIAL HOLDINGS,
INC. 2007 STOCK OPTION PLAN

(AS AMENDED AND RESTATED APRIL 25,
2008)

 

Article 1. Establishment,
Objectives and Duration

 

1.1 Establishment
of the Plan. Geospatial Mapping Systems, Inc., a Delaware corporation (“Geospatial”), adopted the “Geospatial
Mapping Systems, Inc. 2007 Stock Option Plan,” effective December 1, 2007. Effective April 25, 2008, Geospatial
Holdings, Inc.., a Nevada corporation, assumed the Plan and amended and restated the Plan, as set forth in this document. Options
granted prior to April 25, 2008, will continue to be governed by the terms and conditions of this Plan. Capitalized terms
will have the meanings given to them in Article 2. The Plan permits the grant of Incentive Stock Options and Nonqualified
Stock Options.

 

1.2 Objectives
of the Plan. The Plan’s purpose is to optimize the profitability and growth of the Company through long-term incentives
that are consistent with the Company’s objectives and that link Participants’ interests to those of the Company’s
shareholders; to give Participants an incentive for excellence in individual performance; and to give the Company a significant
advantage in attracting and retaining key employees, directors and consultants.

 

1.3 Effective
Date and Term of the Plan. The amendment and restatement of the Plan will be effective on the Effective Date. The Committee
may make Awards and issue Shares under the Plan at any time after the Effective Date and before the date fixed herein for termination
of the Plan. The Plan will terminate upon the earliest of (i) the tenth anniversary of the Effective Date, (ii) the date
on which all Shares available for issuance under the Plan have been issued pursuant to the exercise of Options under the Plan,
or (iii) the date specified by action of the Board. Upon such Plan termination, all Awards outstanding under the Plan will
continue to have full force and effect in accordance with the terms of the Option Agreement evidencing such Award.

 

Article 2. Definitions

 

Whenever used
in the Plan, the following terms have the meanings set forth below, and when the meaning is intended, the initial letter of the
word will be capitalized:

 

2.1 “Affiliate” means
(a) for purposes of Incentive Stock Options, any corporation that is a parent or subsidiary (as those terms are defined in
Code Sections 424(e) and (f)) of the Company, and (b) for all other purposes hereunder, an entity that (directly or indirectly)
is controlled by, controls, or is under common control with the Company.

 

2.2 “Award” means,
individually or collectively, a grant under this Plan of an Option to a Participant.

 

2.3 “Board” or “Board
of Directors” means the Board of Directors of the Company.

 

2.4
“Cause” will have the meaning set forth in any employment, consulting, or other agreement between any of
the Company Parties and the Participant. If there is no employment, consulting, or other agreement between any of the Company
Parties and the Participant, or if such agreement does not define “Cause,” then “Cause” will mean the
Participant’s (i) conviction of, or plea of nolo contendere to, a felony or a crime involving an
act of moral turpitude, dishonesty or misfeasance; (ii) engagement in any type of disloyalty to any Company Party,
including without limitation, fraud, embezzlement, theft, or dishonesty; (iii) unauthorized disclosure of trade secrets
or confidential information of any Company Party; (iv) material breach of any confidentiality agreement or
non-competition agreement with any Company Party; (v) material breach by the Participant of any agreement relating to
Participant’s employment with any Company Party that is not cured within ten (10) days after notice of such
breach to the Participant; or (iv) gross misconduct that is injurious to any of the Company Parties.

 

    	 

    	 

    

 

2.5 “Change
in Control” means the occurrence of any of the following events:

 

(i) Any “person”
(as defined in Sections 13(d) and 14(d) of the Exchange Act), excluding for this purpose, (a) the Participant, (b) the
Company or any subsidiary of the Company, or (c) any employee benefit plan of the Company or of any subsidiary of the Company,
or any person or entity organized, appointed, or established by the Company for or pursuant to the terms of any such plan that
acquires beneficial ownership of voting securities of the Company, becomes (or has become during the 12-month period ending on
the date of the most recent acquisition by such person) the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly of securities of the Company representing more than thirty-five percent (35%) of the
combined voting power of the Company’s then outstanding securities; provided, however, that no Change
in Control will be deemed to have occurred as a result of a change in ownership percentage resulting solely from an acquisition
of securities by the Company;

 

(ii) Individuals
who constitute the Board as of the Effective Date (the “Incumbent Directors”) cease for any reason to constitute at
least a majority of the Board during any 12-month period, provided that any person becoming a director on the Board subsequent
thereto whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors then
on the Board (either by a specific vote or by approval by the stockholders pursuant to a proxy statement of the Company in which
such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however,
that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election
contest with respect to directors or as a result of any other actual or threatened solicitation of proxies or consents by or on
behalf of any person other than the Board shall be deemed to be an Incumbent Director; or

 

(iii) Consummation
of a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of the assets of the Company
(a “Business Combination”), in each case, unless, following such Business Combination, all or substantially all of
the individuals and entities who were the beneficial owners of outstanding voting securities of the Company immediately prior to
such Business Combination beneficially own, directly or indirectly, fifty percent (50%) or more of the combined voting power
of the then outstanding voting securities entitled to vote generally in the election of directors of the entity resulting from
such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or
all of substantially all of the Company’s assets either directly or through one ore more subsidiaries) in substantially the
same proportions as their ownership, immediately prior to such Business Combination, of the outstanding voting securities of the
Company.

 

2.6 “Code” means
the Internal Revenue Code of 1986, as amended.

 

2.7 “Committee” means
the Compensation Committee of the Board or such other committee of the Board (which may be the Board as a whole) designated by
the Board to administer the Plan pursuant to Article 3 hereof.

 

2.8 “Common
Stock” means the Company’s common stock, $0.001 par value per share, and any successor securities thereto,
including pursuant to a stock dividend, a stock split, reclassification or like action, or pursuant to an exchange (including a
merger).

 

2.9 “Company” means
Geospatial Holdings, Inc., a Nevada corporation, and any successor thereto as provided in Article 12.

 

2.10 “Company
Parties” means, collectively and without duplication, the Company and any of its Affiliates.

 

2.11 “Consultant” means
a consultant, advisor or other independent service provider engaged by a Company Party to render services to such Company Party
and who is not a Director or an Employee.

 

2.12 “Designated
Beneficiary” means the Person or Persons the Participant designates (who may be designated contingently or successively)
from time to time on a signed form prescribed by the Committee, filed with the Company during the Participant’s lifetime,
as the beneficiary of any amounts or benefits the Participant owns or is to receive under the Plan. Each beneficiary designation
will revoke all prior designations by the same Participant. If the Participant has not designated a beneficiary under the Plan,
or if the Participant’s Designated Beneficiary is not living on the relevant date hereunder, the Company will treat the Participant’s
estate as the Designated Beneficiary.

 

    	 

    	 

    

 

2.13 “Director” means
any individual who is a member of the Board or the board of directors of any other Company Party.

 

2.14 “Disability” will
have the meaning set forth in any long-term disability policy or program sponsored by the Company or any Affiliate covering the
Participant, as in effect as of the date of such determination; provided,however, if no such policy or program
shall be in effect, “Disability” shall have the meaning set forth in any employment, consulting, or other agreement
between any of the Company Parties and the Participant. A Participant bound by such agreement shall not be determined to be Disabled
under the Plan any earlier than he or she would be determined to be disabled under such agreement. If there is no employment, consulting,
or other agreement between any of the Company Parties and the Participant, or if such agreement does not define “Disability,”
then “Disability” will mean any physical or mental impairment that can be expected to last for a continuous period
of at least twelve (12) months and renders the Participant unable to engage in any substantial gainful activity, as determined
in the Committee’s good faith judgment.

 

2.15 “Effective
Date” means April 25, 2008.

 

2.16 “Employee” means
a person employed by any of the Company Parties, whether by contract or in a common law employee-employer relationship.

 

2.17 “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

 

2.18 “Exercise
Price” means the price at which a Participant may purchase a Share pursuant to an Option.

 

2.19 “Fair
Market Value” means on any date, as it relates to a Share: (i) if the Shares are readily tradable on an established
securities market, (x) the average of the high and low prices of such Shares as reported on the principal national securities
exchange on which the Shares are then listed on the date specified herein, or if there were no sales on such date, on the next
preceding day on which there were sales, or (y) if such Shares are not listed on a national securities exchange, the average
of the last reported bid price in the over-the-counter market for such Shares for each of the 20 Business Days preceding the specified
date; and (ii) if the Shares are not readily tradable on an established securities market, the value determined by any means
determined fair and reasonable by the Board, which determination shall be final and binding on all parties.

 

2.20 “Fiscal
Year” means the 12-consecutive month period coinciding with the Company’s fiscal year.

 

2.21 “Geospatial” means
Geospatial Mapping Systems, Inc., a Delaware corporation.

 

2.22 “Incentive
Stock Option” or “ISO” means an Option that the Board designates as an Incentive Stock
Option and that is intended to meet the requirements of Code Section 422.

 

2.22 “Nonqualified
Stock Option” means either an Option designated as a Nonqualified Stock Option that is not intended to meet the
requirements of Code Section 422 or an Option designated as an ISO but which, for any reason, fails to qualify as an ISO under
Code Section 422 and the rules and regulations thereunder.

 

2.23 “Option” means
an option to purchase Shares granted under Article 6.

 

2.24 “Option
Agreement” means an agreement entered into between the Company and a Participant setting forth the terms and provisions
applicable to an Award or Awards granted to the Participant.

 

2.25 “Owned
Shares” means Shares that a Participant has acquired through the exercise of an Option, in accordance with Article
6 and the terms of any Option Agreement.

 

2.26 “Participant” means
a Person selected by the Committee to receive an Award under the Plan, pursuant to Section 5.2, or who has an
outstanding Award granted under the Plan.

 

    	 

    	 

    

 

2.27 “Person” means
any individual, partnership, limited partnership, corporation, limited liability company or partnership, association, joint stock
company, trust, joint venture, unincorporated organization, or the United States of America or any other nation, any state or other
political subdivision thereof, or any entity exercising executive, legislative, judicial, regulatory or administrative functions
of government.

 

2.28 “Plan” means
the Geospatial Holdings, Inc. 2007 Stock Option Plan, as set forth in this document and as amended from time to time.

 

2.29 “Prior
Plan” means the Geospatial Mapping Systems, Inc. 2007 Stock Option Plan.

 

2.30 “Public
Offering” means a public offering of Common Stock (or the securities of any successor to the Company) pursuant to
an effective registration statement under the Securities Act.

 

2.31 “Securities
Act” means the Securities Act of 1933, as amended from time to time, or any successor act thereto.

 

2.32 “Service” means
the provision of services in the capacity of (i) an Employee, (ii) a Director, or (iii) a Consultant.

 

2.33 “Stockholders” means
the stockholders of the Company.

 

2.34 “Shares” means
shares of Common Stock.

 

Article 3. Administration

 

3.1 Administrator. Except
as otherwise determined by the Board, the Plan shall be administered by the Committee.

 

3.2 Authority
of the Committee. Except as limited by law and subject to the provisions of this Plan, the Committee will have full power
to: (i) select eligible Persons to participate in the Plan; (ii) determine the sizes and types of Awards; (iii) determine
the terms and conditions of Awards in a manner consistent with the Plan; (iv) construe and interpret the Plan and any agreement
or instrument entered into under the Plan; (v) establish, amend or waive rules and regulations for the Plan’s administration;
(vi) specify the Exercise Price; and (vii) subject to the provisions of Article 10, amend the Plan or the
terms and conditions of any outstanding Award to the extent the terms are within the Committee’s discretion under the Plan.
Further, the Committee will make all other determinations that may be necessary or advisable to administer the Plan. The Committee
may delegate some or all of its authority under the Plan.

 

It is the Company’s
intent that Awards are not to be treated as deferred compensation under Code Section 409A (or any regulations or other guidance
promulgated thereunder) and that any ambiguities in construction be interpreted in order to effectuate such intent. Awards under
the Plan shall contain such terms as the Committee determines are appropriate to avoid the application of Code Section 409A.
In the event that, after the issuance of an Award under the Plan, Code Section 409A or regulations thereunder are issued or
amended, or the Internal Revenue Service or Treasury Department issues additional guidance interpreting Code Section 409A,
the Committee may (but shall have no obligation to do so) amend or modify the terms of any such previously issued Award to the
extent the Committee determines that such amendment or modification is necessary to avoid the application of, or to comply with,
Code Section 409A.

 

3.3 Decisions
Binding. All determinations and decisions made by the Board or Committee pursuant to the provisions of the Plan will be
final, conclusive and binding on all Persons, including, without limitation, the Company, its Board of Directors, the Stockholders,
all Affiliates, Employees, Participants and their estates and beneficiaries.

 

    	 

    	 

    

 

Article 4. Shares Subject
to the Plan and Maximum Awards

 

4.1 Number
of Shares Available for Grants. Subject to adjustment as provided in Section 4.4, no more than fifteen
million (15,000,000) Shares may be subject to Awards under the Plan. Shares issued in connection with Awards that are assumed,
converted or substituted pursuant to a merger, acquisition or similar transaction entered into by the Company or any of its Affiliates
shall not reduce the number of Shares available under this Plan.

 

4.2 Limits
on ISOs. The maximum number of Shares that may be issued or transferred to Participants and their beneficiaries with respect
to ISOs granted under the Plan shall be fifteen million (15,000,000) Shares. The maximum number of Shares that may be granted
during any calendar year to any one Participant under all types of Awards under the Plan is five million (5,000,000) (on an
aggregate basis).

 

4.3 Lapsed
Awards. If any Award granted under this Plan is canceled, terminates, expires or lapses for any reason, any Shares subject
to such Award will again be available for the grant of an Award under the Plan. Any Shares underlying an Option that is surrendered
by a Participant in a cashless exercise transaction will again be available for the grant of an Award under the Plan.

 

4.4 Adjustments
in Authorized Shares. If the Shares, as currently constituted, are changed into or exchanged for a different number or
kind of shares of stock or other securities of the Company or of another entity (whether because of a merger, consolidation, recapitalization,
reclassification, split, reverse split, combination of shares, other distribution of Shares without the receipt of consideration
by the Company or otherwise, but not including a Public Offering or other capital infusion from any source) or if the number of
Shares is increased through the payment of a dividend, then the Committee shall substitute for or add to each Share that may become
subject to an Award the number and kind of shares or other securities into which each such Share was changed, for which each such
Share was exchanged or to which each such Share is entitled, as the case may be.

 

Article 5. Eligibility
and Participation

 

5.1 Eligibility. Any
Employee, Director or Consultant is eligible to receive Awards under this Plan.

 

5.2 Actual
Participation. The Committee will determine, within the limits set forth below, those Employees, Directors or Consultants
to whom it will grant Awards. Each Employee, Director or Consultant selected by the Committee to receive an Award will become a
Participant in the Plan upon execution of an Option Agreement.

 

Article 6. Stock Options

 

6.1 Grant
of Options. Subject to the terms and provisions of the Plan, the Committee may grant Options to any Employee, Director
or Advisor, in the number, and upon the terms, and at any time and from time to time, as the Committee determines and sets forth
in an Option Agreement.

 

6.2 Option
Agreement. Each Option grant will be evidenced by an Option Agreement that specifies the duration of the Option, the number
of Shares to which the Option pertains, the manner, time, and rate of exercise and/or vesting of the Option, and such other provisions
as the Committee determines.

 

6.3 Exercise
Price. Each Option grant and Option Agreement will specify the Exercise Price for each Share subject to an Option. The
per Share exercise price for Shares to be issued pursuant to the exercise of an Option shall be no less than the Fair Market value
per Share on the date the Option is granted.

 

6.4 Duration
of Options. Each Option will expire at the time determined by the Committee at the time of grant and specified in the
Option Agreement, but no later than the tenth anniversary of the date of its grant.

 

6.5 Exercise
of Options. Options will become vested and exercisable at such times and be subject to such restrictions and conditions
as the Committee in each instance approves and sets forth in each Option Agreement.

 

6.6 Payment. The
holder of an Option may exercise the Option only by delivering a written notice of exercise to the Company setting forth the number
of Shares as to which the Option is to be exercised, together with full payment of the Exercise Price for the Shares as to which
the Option is exercised and any withholding tax relating to the exercise of the Option.

 

    	 

    	 

    

 

The Exercise
Price and any related withholding tax will be payable to the Company in full either: (i) in United States dollars, in cash
or by check, bank draft, or money order payable to the order of the Company; (ii) with Shares owned by the Participant with
a Fair Market Value equal to the Exercise Price and any related withholding tax being duly endorsed for transfer to the Company
free and clear of any encumbrance; (iii) through a simultaneous exercise of the Participant’s Award and sale of the
Shares thereby acquired pursuant to a brokerage arrangement approved in advance by the Committee to assure its conformity with
the terms and conditions of the Plan; (iv) any combination of cash, check, Shares and/or, simultaneous exercise meeting the
requirements of (i) through (iii) above; or (v) by any other means the Committee determines to be consistent with
the Plan’s purposes and applicable law.

 

6.7 Restrictions
on Share Transferability. The Committee may impose such restrictions on any Owned Shares as it deems necessary or advisable,
including, without limitation, restrictions under applicable federal securities laws, under the requirements of any stock exchange
or market upon which the Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to the
Shares.

 

6.8 Termination
of Service.

 

(a)
Each Option Agreement will set forth the extent to which the Participant has the right to exercise the Option after his or her
termination of Service. These terms will be determined by the Committee in its discretion and may reflect, among other things,
distinctions based on the reasons for termination of Service.

 

(b)
Unless sooner terminated as provided in this Plan, in the event of the termination of a Participant’s Service with the Company
and any Affiliate for any reason other than death or Disability of the Participant, such Participant may, within thirty (30) days
(or such longer period of time as may be provided in the Option Agreement) from the date of such termination (but in no event later
than the expiration date of the term of such Option) exercise such option to the extent vested and exercisable.

 

(c)
Unless sooner terminated as provided in this Plan, in the event of the Disability or death of a Participant while employed or engaged
by the Company or any Affiliate, Options held by such Participant that are vested and exercisable as of the date of Disability
or death shall be exercisable for a period of six (6) months (or such longer period of time as may be provided in the Option
Agreement) from the date of the Participant’s Disability or death, as applicable.

 

(d)
In the event of the termination of a Participant’s Service with the Company and any Affiliates for Cause, all Options held
by such Participant shall terminate as of the date of such termination.

 

(e)
Options may be terminated at any time by agreement between the Company and the Participant.

 

6.9 Nontransferability
of Options. Except as otherwise provided in a Participant’s Option Agreement, no Option granted under the Plan may
be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and
distribution. Further, except as otherwise provided in a Participant’s Option Agreement, all Options will be exercisable
during the Participant’s lifetime only by the Participant or his or her guardian or legal representative. The Committee may,
in its discretion, require a Participant’s guardian or legal representative to supply it with the evidence the Committee
deems necessary to establish the authority of the guardian or legal representative to act on behalf of the Participant.

 

6.10 Legend. Each
certificate evidencing Owned Shares and each certificate issued in exchange for or upon the transfer of any Owned Shares will be
stamped or otherwise imprinted with such legend as the Committee requires.

 

6.11 Financial
Information. The Committee shall distribute financial statements at least annually to any Participants who live in California
and who are not key employees whose duties in connection with the issuer assure them to access to equivalent information.

 

6.12 Incentive
Stock Options. Notwithstanding any other provision of this Article 6, the following special provisions shall apply
to any award of Incentive Stock Options:

  

	 	(a)	The Board may award Incentive Stock Options only to Employees.
	 	 	 
	 	(b)	An Option will not constitute an ISO under the Plan to the extent it would cause the aggregate Fair Market Value of Shares with respect to which ISOs are exercisable by the Participant for the first time during a calendar year (under all plans of the Company and its Affiliates) to exceed $100,000. Such Fair Market Value shall be determined as of the date on which each such ISO is granted.

 

    	 

    	 

    

 

	 	(c)	If the Employee to whom an ISO is granted owns stock possessing more than ten (10%) percent of the total combined voting power of all classes of stock of the Company or any of its Affiliates, then: (i) the Exercise Price for each Share subject to the ISO will be at least one hundred ten percent (110%) of the Fair Market Value of a Share on the date of grant; and (ii) the ISO will expire upon the earlier of (A) the time specified by the Board in the Award Agreement, or (B) the fifth anniversary of the date of grant.
	 	 	 
	 	(d)	No Option that is intended to be an ISO may be granted under the Plan until the Company’s stockholders approve the Plan. If such stockholder approval is not obtained within 12 months after the Board’s adoption of the Plan, then no Options may be granted under the Plan that are intended to be ISOs. No Option that is intended to be an ISO may be granted under the Plan after the tenth anniversary of the date Geospatial adopted the Prior Plan or Geospatials stockholders approved the Prior Plan, whichever is earlier.
	 	 	 
	 	(e)	An ISO must be exercised, if at all, by the earliest of (i) the time specified in the Award Agreement, (ii) three months after the Participant’s termination of Service for a reason other than death or Disability, or (iii) 12 months after the Participant’s termination of Service for death or Disability.
	 	 	 
	 	(f)	The Participant must notify the Company of any disposition of any Shares issued pursuant to the exercise of an ISO under the circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions) (any such circumstance, a “Disqualifying Disposition”), within 10 days of such Disqualifying Disposition.
	 	 	 
	 	(g)	An Option that is intended but fails to be an ISO shall be treated as an NQSO for purposes of the Plan.

 

Article 7. Change in
Control

 

Notwithstanding
anything to the contrary set forth in this Plan, in the event of a Change in Control, the Board shall have the right, in its
sole discretion, to accelerate the vesting and exercisability of all Options that are not vested and exercisable as of the
date of the Change of Control and/or establish an earlier date for the expiration of the exercise of an Option
(notwithstanding a later expiration of exercisability set forth in an Option Agreement). In addition, in the event of a
Change in Control, the Board shall have the right, in its sole discretion: (i) to arrange for the successor company (or
other entity) to assume all of the rights and obligations of the Company under this Plan, or (ii) to terminate this Plan
and any outstanding Options and (A) to pay to all Participants cash with respect to such Options that are vested (or
that become vested) as of the date of the Change in Control in an amount equal to the difference between the Exercise Price
of each such Option and the Fair Market Value of a Share (determined as of the date the Plan is terminated) multiplied by the
number of Options that are vested (or that become vested) as of the date of the Change of Control, or (B) to arrange for
the exchange of all Options for options to purchase common stock in the successor corporation, or (C) to distribute to
each Participant other property in an amount equal to and in the same form as the Participant would have received from the
successor corporation if the Participant had owned the Shares subject to the Option at the time of the Change in Control. The
form of payment or distribution to the Participant pursuant to this Section shall be determined by the Board in its sole
discretion. If the Change in Control is structured as a (i) merger or consolidation, the Participant shall waive any
dissenters rights, appraisal rights or similar rights in connection with such merger or consolidation or (ii) sale of
Shares, each Participant will agree to sell all of his or her Owned Shares and vested Options on the terms and conditions
approved by the Committee and comparable to the terms applicable to the beneficial owners of the Company’s outstanding
voting stock. All Participants will take all actions the Committee considers necessary or desirable in connection with the
consummation of the Change in Control.

 

Article 8. Breach of
Restrictive Covenants

 

An Option Agreement
may provide that, notwithstanding any other provision of this Plan to the contrary, if the Participant breaches the provisions
of the Option Agreement with respect to non-competition or nonsolicitation of customers, suppliers, licensees, licensors or other
business relations, whether during or after termination of Service, the Participant will forfeit and/or repay to the Company:

 

(a)
any and all Awards granted or transferred to him or her under the Plan, including Awards that have become vested and exercisable;
and

 

(b)
the profit the Participant has realized on the exercise of any Options, which is the difference between (i) the Exercise Price
of the Options the Participant exercised after terminating Service and within the six (6) month period immediately preceding
the Participant’s termination of Service and (ii) the applicable Fair Market Value of the Shares purchased under such
Options.

 

    	 

    	 

    

 

Article 9. Rights of
Participants

 

(a)
Nothing in the Plan will interfere with or limit in any way the right of any of the Company Parties to terminate any Participant’s
Service at any time, or confer upon any Participant any right to continue in the Service of any of the Company Parties.

 

(b)
A Participant shall have no rights as a Stockholder with respect to Shares covered by an Award until the date the Participant or
his nominee, guardian, or legal representative is the holder of record of the Shares.

 

Article 10. Amendment,
Modification and Termination

 

10.1 The
Board may at any time and from time to time, alter, amend, modify or terminate the Plan in whole or in part. Subject to the
terms and conditions of the Plan, the Board may modify, extend or renew outstanding Awards under the Plan, or accept the
surrender of outstanding Awards (to the extent not already exercised) and grant new Awards in substitution of them (to the
extent not already exercised). Notwithstanding the foregoing, no modification of an Award will, without the prior written
consent of the Participant, materially and adversely alter or impair any rights or obligations under any Award already
granted under the Plan.

 

10.2 Adjustment
of Awards Upon the Occurrence of Certain Events.

 

(a) Equity
Restructurings. If the outstanding Shares are increased, decreased, changed into or exchanged for a different number or kind
of shares or other securities of the Company through a non-reciprocal transaction, such as a reorganization, distribution or other
similar transaction, between the Company and its Stockholders that causes the per Share fair value underlying an Award to change,
a proportionate adjustment shall be made to the number or kind of Shares or other securities allocated to Awards that have been
granted prior to any such change. Any such adjustment in an outstanding Option shall be made without change in the aggregate Exercise
Price applicable to the unexercised portion of such Option but with a corresponding adjustment in the Exercise Price for each Share
or other security covered by such Option.

 

(b) Reciprocal
Transactions. The Committee may, but shall not be obligated to, make an appropriate and proportionate adjustment to an Award
or to the Exercise Price of any outstanding Option, and/or grant an additional Award to the holder of any outstanding Award, to
compensate for the diminution in the intrinsic value of the Shares resulting from any reciprocal transaction, such as a merger
or other similar transaction.

 

(c) Certain
Unusual or Nonrecurring Events. In recognition of unusual or nonrecurring events affecting the Company or its financial statements,
or in recognition of changes in applicable laws, regulations, or accounting principles, and, whenever the Committee determines
that adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to
be made available under the Plan, the Committee may, using reasonable care, make adjustments in the terms and conditions of, and
the criteria included in, Awards.

 

(d) Fractional
Shares and Notice. Fractional Shares resulting from any adjustment in Awards pursuant to this Section 10.2 may
be settled in cash or otherwise as the Committee determines. The Company will give notice of any adjustment to each Participant
who holds an Award that has been adjusted and the adjustment (whether or not such notice is given) will be effective and binding
for all Plan purposes.

 

Article 11. Withholding

 

11.1 Tax
Withholding. The Company will have the power and the right to deduct or withhold, or require a Participant to remit to
the Company, an amount (either in cash or Shares) sufficient to satisfy federal, state, and local taxes, domestic or foreign, required
by law or regulation to be withheld with respect to any taxable event arising under this Plan.

 

    	 

    	 

    

 

11.2
Share Withholding. With respect to withholding required upon the exercise of Options, or upon any other taxable
event arising as a result of Awards granted hereunder, the Company may satisfy the minimum withholding requirement for
supplemental wages, in whole or in part, by withholding Shares having a Fair Market Value, determined as of (i) the last
day of the calendar month ending on or immediately preceding the date the Participant recognizes taxable income on the Award,
or (ii) the end of the Company’s most recently concluded Fiscal Year, whichever date produces the lower Fair
Market Value figure, equal to the minimum amount of withholding tax required to be collected on the transaction. The
Participant may elect to deliver the necessary funds to satisfy the withholding obligation to the Company, in which case
there will be no reduction in the Shares otherwise distributable to the Participant.

 

Article 12. Successors

 

All obligations
of the Company under the Plan or any Option Agreement will be binding on any successor to the Company, whether the existence of
the successor results from a direct or indirect purchase of all or substantially all of the Company’s shares, or a merger,
consolidation, or otherwise.

 

Article 13. Legal Construction

 

13.1 Number. Except
where otherwise indicated by the context, any plural term used in this Plan includes the singular and a singular term includes
the plural.

 

13.2 Severability. If
any provision of the Plan is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining
parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provision had not been included.

 

13.3 Requirements
of Law. The granting of Awards and the issuance of Share and/or cash payouts under the Plan will be subject to all applicable
laws, rules, and regulations, and to any approvals by governmental agencies or national securities exchanges as may be required.

 

13.4 Securities
Law Compliance. As to any individual who is, on the relevant date, an officer, director or ten percent (10%) beneficial
owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act,
all as defined under Section 16 of the Exchange Act, transactions under this Plan are intended to comply with all applicable
conditions of Rule 16b-3 under the Exchange Act, or any successor rule. To the extent any provision of the Plan or action by the
Board or Committee fails to so comply, it will be deemed null and void, to the extent permitted by law and deemed advisable by
the Board.

 

13.5 Unfunded
Status of the Plan. The Plan is intended to constitute an “unfunded” plan for incentive compensation. With
respect to any payments or deliveries of Shares not yet made to a Participant by the Company, the Participant’s rights are
no greater than those of a general creditor of the Company. The Committee may authorize the establishment of trusts or other arrangements
to meet the obligations created under the Plan, so long as the arrangement does not cause the Plan to lose its legal status as
an unfunded plan.

 

13.6 Limitation
of Liability. Notwithstanding anything herein to the contrary, no member of the Board or the Committee shall be liable
for any good faith determination, act or failure to act in connection with the Plan or any Award hereunder, and the Board and the
members of the Committee shall be entitled to indemnification and reimbursement in the manner provided in the Company’s Certificate
of Incorporation, By-Laws by agreement or otherwise as may be amended from time to time.

 

13.7 Awards
to Foreign Nationals and Employees Outside the United States. To the extent the Committee deems it necessary, appropriate
or desirable to comply with foreign law or practice and to further the purposes of this Plan, the Committee may, without amending
the Plan, (i) establish rules applicable to Awards granted to Participants who are foreign nationals, are employed outside
the United States, or both, including rules that differ from those set forth in this Plan, and (ii) grant Awards to such Participants
in accordance with those rules that would require the application of the law of any other jurisdiction.

 

13.8 Governing
Law. To the extent not preempted by federal law, the Plan and all agreements hereunder will be construed and enforced
in accordance with, and governed by, the laws of the State of Delaware, without giving effect to its conflicts of laws principles
that would require the application of the law of any other jurisdiction.Geospatial Corporation S-1 

Exhibit 10.4

 

EMPLOYMENT
AGREEMENT

 

BETWEEN

 

MARK A. SMITH

 

AND

 

GEOSPATIAL
MAPPING SYSTEMS, INC.

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT (“Agreement”), by
and between GEOSPATIAL MAPPING SYSTEMS, INC., a Delaware corporation (the “Company”), and Mark A.
Smith (the “Executive”) is entered into as of December 1, 2007 (the “Employment
Date”). In consideration of the mutual covenants set forth herein, the Company and the Executive hereby agree as
follows:

 

1. Employment. The
Company hereby agrees to employ the Executive, and the Executive agrees to continue to serve the Company, in the capacities described
in Section 3 of this Agreement, during the Period of Employment (as defined in Section 2 of this Agreement), in accordance
with the terms and conditions of this Agreement.

 

2. Period
of Employment. The term “Period of Employment” shall mean the period which commenced on the
Employment Date and, unless earlier terminated pursuant to Section 6, ends on November 30, 2010; provided, however, that
beginning on December 1, 2010, the Period of Employment shall automatically be extended on a day-by-day basis from and after
such date shall always be twelve (12) months unless either the Company or the Executive shall have terminated this automatic
extension provision by giving written notice to the other.

 

3. Duties
During the Period of Employment

 

3.1 Duties. During
the Period of Employment, the Executive shall be employed as the Chairman, President and Chief Executive Officer of the Company
with overall charge and responsibility for the business and affairs of the Company. The Executive shall report directly to the
Company’s Board of Directors (the “Board”) and shall perform such duties as the Executive shall reasonably be
directed to perform by the Board. The Company shall make all reasonable efforts to cause the Executive to continue to be elected
to the Board throughout the Period of Employment.

 

3.2 Scope. Throughout
the Period of Employment, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive
shall devote substantially all of his business time and attention to the business and affairs of the Company. It shall not be a
violation of this Agreement for the Executive to (a) serve on corporate, civic or charitable boards or committees, (b) deliver
lectures, fulfill speaking engagements or teach occasional courses or seminars at educational institutions, or (c) manage
personal investments and engage in any other activities, so long as such activities under clauses (a), (b) and (c) do
not interfere, in any significant respect, with the Executive’s responsibilities hereunder or otherwise violate this Agreement
or the Agreement Not to Compete executed and delivered by the Executive pursuant to the provisions of Section 12.

 

4. Compensation
and Other Payments.

 

4.1 Salary. During
the Period of Employment, the Executive’s Base Salary shall initially be at the rate of Three Hundred Twenty Thousand Dollars
($320,000) per year (the “Base Salary”). The Executive’s Base Salary shall be paid in accordance
with the Company’s standard payroll practice. The Base Salary shall be reviewed by the Company’s Board of Directors
or a committee of directors established by the Board of Directors having responsibility for compensation matters (in either case,
the “Board”) as soon as practicable after the end of each fiscal year during the Period of Employment.
Based upon such reviews, the Board may increase, but shall not decrease, the Base Salary. Any increase in Base Salary shall not
serve to limit or reduce any other obligation of the Company under this Agreement.

 

    	 

    	 

    

 

4.2 Annual
Bonuses.

 

4.2.1 Beginning
with the Company’s fiscal year commencing on January 1, 2007 (the “Initial Year”), the Executive
shall participate in each annual and long-term incentive compensation plan established by the Board for executive officers of the
Company (“Executive Compensation Plans”). For the Initial Year, the Executive’s target bonus
award opportunity as a percentage of Base Salary (“Target Bonus Amount”) in the Company’s annual
incentive compensation plan (the “Annual Bonus Plan”) shall be set at 100% of Executive’s Base Salary.
The performance measures applicable to the Executive’s bonus opportunity for each fiscal year of the Company during the Period
of Employment shall be set by reasonable, good faith agreement of the Board and the Executive.

 

4.2.2 As
soon as practicable after the end of the Initial Year and each fiscal year thereafter during the Period of Employment, the Board
shall review the Executive’s performance under this Agreement as part of the Executive’s participation in the Executive
Compensation Plans as in effect from time to time. The performance measures and the Target Bonus Amount applicable to the Executive’s
bonus opportunity for each fiscal year of the Company during the Period of Employment shall be established by the Board, subject
to Section 4.6 below. The Executive shall be paid his annual bonus, if any, no later than the date on which other senior executives
of the Company are paid their annual bonuses. The Board may, in its discretion, award the Executive bonuses in addition to those
provided under any plans referred to above.

 

4.3 Stock
Options. The Company hereby grants to the Executive a ten (10) year stock option award with respect to eight million
(8,000,000) shares of common stock of the Company at an exercise price of fifty cents ($0.50) per share. This option award
(a) is a non-qualified option granted under the 2007 Stock Option Plan of the Company dated December 1, 2007, (b) shall
be fully vested and exercisable immediately upon grant, and (c) shall be further documented by an option agreement in the
form customarily used by the Company for non-qualified option awards under that plan, but with all terms consistent with this Agreement.

  

4.4 Other
Compensation. During the Period of Employment, the Executive shall be entitled to participate, at a level and on a basis
commensurate with the Executive’s position and responsibilities, in any and all supplemental compensation plans or arrangements
established by the Company for its senior executives, including but not limited to any equity-based incentive compensation plans
or arrangements.

 

4.5 Payment
of Professional Fees. The Company shall pay all invoices rendered to the Company by the Executive’s attorneys, accountants
and other advisors for reasonable fees and expenses in connection with the negotiation and preparation of this Agreement; provided,
however, that the Company’s obligation pursuant to this Section 4.5 shall not exceed $25,000 incurred by Executive.

 

5. Other
Executive Benefits.

 

5.1 Business
Expenses. Subject to the Executive’s compliance with the policies and procedures approved by the Board and applicable
to all senior executives of the Company, the Company shall promptly reimburse the Executive for all expenses and disbursements
reasonably incurred by the Executive in the performance of his duties hereunder during the Period of Employment.

 

5.2 Benefit
Plans. The Executive and his eligible family members shall be entitled, subject to any normally applicable waiting periods
and eligibility criteria, to participate, on terms no less favorable to the Executive than the terms offered to other senior executives
of the Company, in any group and/or executive life, hospitalization or disability insurance plan, health program, pension, profit
sharing, 401(k) and similar benefit plans (qualified, non-qualified and supplemental) or other fringe benefits (it being understood
that items such as stock options and other equity awards are not fringe benefits) of the Company (collectively referred to as the “Benefits”).
Anything contained herein to the contrary notwithstanding, the Benefits described herein shall not duplicate benefits made available
to the Executive pursuant to any other provision of this Agreement.

 

5.3 Holidays
and Vacation. During the Period of Employment, the Executive shall be entitled to the same paid holidays as other employees
of the Company. The Executive shall be entitled to paid vacation and other absences from work that are reasonably consistent with
the performance of the Executive’s duties as provided in this Agreement. Such vacations and absences shall be consistent
with those generally provided to other senior executives of the Company.

 

    	 

    	 

    

 

5.4 Company
Automobile. During the Period of Employment, the Executive shall have the use of an automobile provided by the Company
in accordance with a policy approved by the Board; provided, however, that no change adverse to the Executive may be made in that
policy without the written consent of the Executive.

 

5.5 Facilities
and Support. During the Period of Employment, the Company shall provide the Executive with office space, furnishings and
facilities, secretarial and administrative assistance, supplies and equipment appropriate to enable the Executive to perform his
duties under this Agreement and commensurate, in quality and quantity, with the facilities and support resources provided to the
other senior executives of the Company.

 

5.6 Tax
and Financial Planning Services. During the Period of Employment, the Company shall pay (or reimburse the Executive) for
the cost of personal tax and financial planning services and related expenses in an amount up to fifteen thousand dollars ($15,000.00)
per year.

 

6. Termination.

 

6.1 Death. The
Period of Employment shall terminate automatically upon the Executive’s death.

 

6.2 Disability. If
the Company determines in good faith that the Disability of the Executive has occurred (pursuant to the definition of “Disability”
set forth below), it may give to the Executive written notice of its intention to terminate the Executive’s employment. In
such event, the Period of Employment shall terminate effective on the 30th day after receipt by the Executive of such written notice
given at any time after a period of 120 consecutive days of Disability or a period of 180 days of Disability within any 12 consecutive
months, and, in either case, while such Disability is continuing (“Disability Effective Date”). The Disability
Effective Date shall not occur if the Executive returns to performance of the Executive’s duties as contemplated in this
Agreement within 30 days after receipt of such notice. For purposes of this Agreement, “Disability” means
the Executive’s inability to substantially perform his duties hereunder, with reasonable accommodation, as evidenced by a
certificate signed either by a physician mutually acceptable to the Company and the Executive or, if the Company and the Executive
cannot agree upon a physician, by a physician selected by agreement of a physician designated by the Company and a physician designated
by the Executive; provided, however, that if such physicians cannot agree upon a third physician within 30 days, such third physician
shall be designated by the American Arbitration Association. Until the Disability Effective Date, the Executive shall be entitled
to all compensation and benefits provided for under Sections 4 and 5 hereof. It is understood that nothing in this Section 6.2
shall serve to limit the Company’s obligations under Section 7.3, below.

 

6.3 By the Company for
Cause. During the Period of Employment, the Company may terminate the Executive’s employment immediately for
“Cause.” For purposes of this Agreement, “Cause” means (a) a material breach of
this Agreement by the Executive or the gross neglect of the Executive’s duties hereunder (after the provision to the
Executive by the Company of written notice reasonably specifying the breach and/or performance deficiency and thirty
(30) days to cure such breach), (b) the Executive’s willful misconduct or gross negligence, which is
demonstrably and materially injurious to the Company monetarily or otherwise, or (c) the Executive’s engaging in
egregious misconduct involving serious moral turpitude to the extent that the Executive’s credibility and reputation no
longer conforms to the standards of employees of the Company employed in a similar level or position. For purposes of this
definition, no act or failure to act on the part of the Executive shall be considered “willful” unless it is
done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or
omission was in the best interest of the Company. Any act, or failure to act, based upon direction given in a resolution duly
adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interest of the Company. The foregoing notwithstanding,
the Company may not terminate the Executive’s employment for Cause, and any purported termination by the Company of
Executive’s employment shall be presumed other than for Cause, unless (i) a determination that Cause exists is
made and approved by at least a 3/4ths majority of the Board, (ii) the Executive is given at least seven (7) days
written notice of the Board meeting called to make such determination, including written notice of the particulars purporting
to establish Cause and (iii) the Executive and his legal counsel are given the opportunity to address that meeting.

 

    	 

    	 

    

 

6.4 By
Executive for Good Reason. During the Period of Employment, the Executive’s employment hereunder may be terminated
by the Executive for Good Reason upon (30) days’ written notice. For purposes of this Agreement, “Good
Reason” means, without the Executive’s written consent, (a) any material breach of this Agreement by
the Company (after the provision to the Company by the Executive of written notice reasonably specifying the breach and/or performance
deficiency and thirty (30) days to cure such breach), (b) the assignment to the Executive of duties that are inconsistent
with those of the Chairman, President and Chief Executive Officer of the Company or that materially impairs the Executive’s
ability to perform his duties, or any other action by the Company that results in a significant diminution in the Executive’s
position, authority, duties or responsibilities, to include without limitation the failure of Executive to be named or elected
to the Board (after the provision to the Company by the Executive of written notice reasonably specifying the basis upon which
the Executive believes this clause has been violated and thirty (30) days to modify such assignment or change in position),
(c) any relocation of the Executive’s office as assigned to him by the Company to a location more than fifty (20) miles
from Natrona Heights, Pennsylvania; (d) delivery by the Company of a notice discontinuing the automatic extension provision
of Section 2 of this Agreement; or (e) any termination by the Executive during the period of six (6) months immediately
following the occurrence of a Change of Control, as defined in Section 8, below.

 

6.5 Other
than for Cause or Good Reason. The Executive or the Company may terminate this Agreement for any reason other than for
Good Reason or Cause, respectively, upon 30 days’ written notice to the Company or the Executive, as the case may be.

 

6.6 Notice
of Termination. Any termination by the Company or by the Executive shall be communicated by a Notice of Termination to
the other party hereto given in accordance with Section 18.2 of this Agreement. For purposes of this Agreement, a “Notice
of Termination” means a written notice which (a) indicates the specific termination provision in this Agreement
relied upon, (b) sets forth in reasonable detail, if applicable, the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated, and (c) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the Date of Termination. The failure by the Executive or Company
to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of the basis for termination
shall not waive any right of such party hereunder or preclude such party from asserting such fact or circumstance in enforcing
his or its rights hereunder.

  

6.7 Date
of Termination. “Date of Termination” means the date specified in the Notice of Termination; provided, however,
that if the Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date
of death of the Executive or the Disability Effective Date, as the case may be.

 

7. Obligations
of the Company Upon Termination. The following provisions of this Section 7 describe the entire obligations of the
Company to the Executive upon termination of his employment under this Agreement.

 

7.1 Termination
by the Company for Cause or by Executive’s Resignation without Good Reason. In the event the Period of Employment
terminates by reason of the termination of the Executive’s employment by the Company for Cause, or by reason of the resignation
of the Executive other than for Good Reason, the Company shall pay to the Executive all Accrued Obligations. “Accrued
Obligations” shall mean, as of the Date of Termination, the sum of (a) the Executive’s Base Salary through
the Date of Termination to the extent not theretofore paid, (b) the amount of any bonus, incentive compensation, deferred
compensation and other cash compensation earned by the Executive as of the Date of Termination to the extent not theretofore paid,
and (c) any vacation pay, expense reimbursements and other cash entitlements earned by the Executive as of the Date of Termination
to the extent not theretofore paid.

 

7.2 Death. If
the Period of Employment is terminated by death, the Executive’s beneficiaries shall be paid the Accrued Obligations. In
addition, all equity awards granted to the Executive by the Company that have not yet vested shall fully vest on the Date of Termination;
and all vested options (whether previously vested or vesting under this sentence) shall remain exercisable for a period equal to
their full original terms.

 

7.3 Disability. If
the Period of Employment is terminated because of Disability, the Executive shall be paid the Accrued Obligations. In addition,
all equity awards granted to the Executive by the Company that have not yet vested shall fully vest on the Date of Termination;
and all vested options (whether previously vested or vesting under this sentence) shall remain exercisable for a period equal to
their full original terms.

 

    	 

    	 

    

 

7.4 Retirement. If
the Executive voluntarily terminates his employment with the Company with or without Good Reason at any time after the Executive
reaches the age of fifty-five (55) years, he shall, in addition to receiving payment of the Accrued Obligations, be treated
as a retiree for purposes of all compensation and benefit plans, policies, arrangements and practices of the Company then in effect.
In addition, all equity awards granted to the Executive by the Company that have not yet vested shall fully vest on the Date of
Termination; and all vested options (whether previously vested or vesting under this sentence) shall remain exercisable for a period
equal to their full original terms.

 

7.5
Resignation with Good Reason or Termination without Cause. If the Company terminates the Executive’s
employment other than for Cause (and other than due to the Executive’s Disability), or if the Executive terminates his
employment for Good Reason, the Executive shall receive, in addition to payment of the Accrued Obligations, the
following:

 

7.5.1 A
lump sum cash payment in an amount equal to the number of months remaining in the Period of Employment multiplied by the sum of
(a) 1/12th of the Executive’s annual Base Salary on the Date of Termination (without regard to any reduction
in Base Salary not approved by the Executive) and (b) 1/12th of the annual bonus award to which the Executive
would have been entitled calculated using the Target Bonus Amount for the year in which the Notice of Termination is given;

 

7.5.2 Immediate
vesting in all equity awards granted to the Executive by the Company but not yet vested as of the Date of Termination;

 

7.53 Continued
exercisability, for a period equal to their full original terms, for all vested options, whether previously vested or vesting under
subsection 7.5.2;

 

7.5.4 For
a period of 12 months after the Date of Termination, the Company shall continue health, prescription drug, dental, disability and
life insurance benefits to the Executive and/or the Executive’s eligible family members at least equal to those which would
have been provided to them in accordance with Section 5.2 of this Agreement if the Executive’s employment had not been
terminated (provided that any benefits provided under this subsection 7.5.4 are subject to immediate early termination if the Executive
becomes eligible to receive similar types of benefits through subsequent employment).

 

7.6 Release. Any
and all compensation and benefits payable pursuant to Section 7.5, above, beyond payments of the Accrued Obligations shall
be payable only if the Executive delivers to the Company a general release, in a form reasonably prescribed by the Company, of
all claims of the Executive arising up to the date of the release; and such release shall be delivered by the Executive within
twenty-one (21) days after presentation thereof to the Executive by the Company.

 

7.7 Exclusive
Rights. It is understood that the Executive’s rights under this Section 7 are in lieu of all other rights which
the Executive may otherwise have had upon termination of employment under this Agreement.

 

7.8 No
Right of Set-Off. The Company shall have no right to reduce, because of any debt or financial obligation of the Executive
to the Company, the amount of any compensation or benefit otherwise payable by the Company to the Executive under this Agreement
or under any other plan, policy, arrangement or practice of the Company.

 

8. Change
in Control. For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if:

 

8.1 Change in Ownership. Any
“person” (as defined in Section 13(d) and 14(d) of the Securities Exchange Act of 19434, as amended (the
“Exchange Act”)), excluding for this purpose, (a) the Executive, (b) the Company or any subsidiary of
the Company, or (c) any employee benefit plan of the Company or of any subsidiary of the Company, or any person or
entity organized, appointed or established by the Company for or pursuant to the terms of any such plan which acquires
beneficial ownership of voting securities of the Company, is or becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act). Directly or indirectly of securities of the Company representing more than thirty percent
(30%) of the combined voting power of the Company’s then outstanding securities; provided, however, that no Change
of Control will be deemed to have occurred as a result of a change in ownership percentage resulting from an acquisition of
securities by the Company; or

 

    	 

    	 

    

 

8.2 Change
in Board. During any twenty-four (24) consecutive months, individuals who at the beginning of such twenty four (24) month
period constitute the Board of Directors of the Company and any new directors (except for any director designated by a person who
has entered into an agreement with the Company to effect a transaction described elsewhere in this definition of Change of Control)
whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved (such individuals and any such new directors being referred to as the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; or

 

8.3 Business
Combination. Consummation of a reorganization, merger or consolidation, or sale or disposition of all or substantially
all of the assets of the Company (a “Business Combination”), in each case, unless following such Business Combination,
all or substantially all of the individuals and entities who were the beneficial owners of outstanding voting securities of the
Company immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty-five percent (55%) of
the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of
the entity resulting from such Business Combination (including, without limitation, an entity which, as a result of such transaction,
owns the Company or all or substantially al of the Company’s assets either directly or through one or more subsidiaries)
in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the outstanding voting
securities of the Company; or

 

8.4 Liquidation. Consummation
of a complete liquidation or dissolution of the Company.

 

9. Taxes. In the event that
the aggregate of all payments or benefits made or provided to, or that may be made or provided to, the Executive under this
Agreement and under all other plans, programs and arrangements of the Company (the “Aggregate Payment”) is
determined to constitute an “excess parachute payment,” as such term is defined in Section 280G(b) of the
Internal Revenue Code, the Company shall pay to the Executive prior to the time any excise tax imposed by Section 4999
of the Internal Revenue Code (“Excise Tax”) is payable with respect to such Aggregate Payment, an additional
amount which, after the imposition of all income and excise taxes thereon, is equal to the Excise Tax on the Aggregate
Payment. The determination of whether the Aggregate Payment constitutes an excess parachute payment and, if so, the amount to
be provided to the Executive and the time of payment pursuant to this Section 8 shall be made by an independent auditor
(the “Auditor”) jointly selected by the Company and the Executive and paid by the Company. The Auditor shall be a
nationally recognized United States public accounting firm which has not, during the two (2) years immediately preceding
the date of its selection, acted in any way on behalf of the Company or any affiliate thereof. If the Executive and the
Company cannot agree on the firm to serve as the Auditor, then the Executive and the Company shall each select one accounting
firm and those two firms shall jointly select the accounting firm to serve as the Auditor. Notwithstanding the foregoing, in
the event that the amount of the Executive’s Excise Tax liability is subsequently determined to be greater than the
Excise Tax liability with respect to which any initial payment to the Executive under this Section 8 has been made, the
Company shall pay to the Executive an additional amount (grossed up for all taxes), with respect to such additional Excise
Tax (and any interest and penalties thereon) at the time and in the amount reasonably determined by the Auditor. Similarly,
if the amount of the Executive’s Excise Tax liability is subsequently determined to be less than the Excise Tax
liability with respect to which any prior payment to the Executive has been made under this Section 8, the Executive
shall refund to the Company the excess amount received, after reduction for any nonrefundable tax, penalties and/or
interest incurred by the Executive in connection with the receipt of such excess, and such refund shall be paid promptly
after the Executive has received any corresponding refund of excess Excise Tax paid to the Internal Revenue Service. The
Executive and the Company shall cooperate with each other in connection with any proceeding or claim relating to the
existence or amount of liability for Excise Tax, and all expenses incurred by the Executive in connection therewith shall be
paid by the Company promptly upon notice of demand from the Executive.

 

10. Mitigation. In
no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts
payable to the Executive under any of the provisions of this Agreement. Except as otherwise set forth herein with respect to health,
prescription drug, dental, disability and life insurance benefits, any severance benefits payable to the Executive shall not be
subject to reduction for any compensation received from other employment.

 

    	 

    	 

    

 

11. Indemnification. The
Executive shall be indemnified by the Company against liability as an officer and director of the Company and any subsidiary or
affiliate of the Company to the maximum extent permitted by applicable law. To the full extent permitted under the corporate governing
documents of the Company, and subject to the terms of any policies and procedures applicable to all directors and senior officers
of the Company, the Company shall advance to the Executive payment of reasonable costs of defending against any claims covered
by the foregoing indemnification commitment The Executive’s rights under this Section 10 shall continue so long as he
may be subject to such liability, whether or not this Agreement may have terminated prior thereto.

 

12. Confidential
Information and Trade Secrets. As a condition to the Company’s obligations hereunder, the Executive shall execute
and deliver to the Company an Agreement Not to Compete in the form attached as Exhibit A to this Agreement. The Company hereby
acknowledges receipt of an Agreement Not to Compete executed by the Executive.

 

13. Withholding. Anything in
this Agreement to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Executive
shall be subject to withholding at the time payments are actually made to the Executive and received by him of such amounts
relating to taxes as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. In
lieu of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provision for
payment of taxes as required by law, provided that it is satisfied that all requirements of law as to its responsibilities to
withhold such taxes have been satisfied.

 

14. Arbitration. Any
dispute or controversy between the Company and the Executive arising out of or relating to this Agreement, other than a dispute
arising out of or related to the Non-Disclosure of Confidential Information and Trade Secrets Agreement, shall be settled by arbitration
conducted under the rules of (but not necessarily administered by) the American Arbitration Association (“AAA”) in
accordance with its National Rules for the Resolution of Employment Disputes then in effect, and judgment on any award rendered
by the arbitrator may be entered in any court having jurisdiction thereof. Any arbitration shall be held before a single arbitrator
who shall be selected by the agreement of the Company and the Executive, unless the parties are unable to agree to an arbitrator,
in which case the arbitrator will be selected under the procedures of the AAA. The arbitrator shall have the authority to award
any remedy or relief that a court of competent jurisdiction could order or grant, including, without limitation, the issuance of
an injunction. Either party may, without inconsistency with this arbitration provision, apply to any court having jurisdiction
over the parties and seek interim provisional, injunctive or other interim equitable relief until the arbitration award is rendered
or the controversy is otherwise resolved. Except as necessary in court proceedings to enforce this arbitration provision or an
award rendered hereunder, or to obtain interim relief, neither a party nor an arbitrator may disclose the existence, content or
results of any arbitration hereunder without the prior written consent of the Company and the Executive. The Company and the Executive
acknowledge that this Agreement evidences a transaction involving interstate commerce. Notwithstanding any choice of law provision
included in this Agreement, the United States Federal Arbitration Act shall govern the interpretation and enforcement of this arbitration
provision. The arbitration proceeding shall be conducted in Pittsburgh, Pennsylvania or such other location to which the parties
may agree. The Company shall pay the costs of any arbitrator appointed hereunder.

 

15. Disputes;
Payment of Attorneys’ Fees. In the event that the Executive is the prevailing party, or is successful to a material
degree, in pursuing or defending, whether in arbitration or litigation, any claim or dispute relating to the Executive’s
employment with the Company, including but not limited to any claim or dispute relating to (a) this Agreement, (b) termination
of the Executive’s employment with the Company or (c) the failure or refusal of the Company or the Executive to perform
fully in accordance with the terms hereof, the Company shall promptly reimburse the Executive for all reasonable costs and expenses
(including, but not limited to, attorneys’ fees) relating solely, or reasonably allocable, to such claim or dispute. In any
other case, the Executive and the Company shall each bear all of their own costs and expenses (including, but not limited to, attorneys’
fees). Upon written request from the Executive while any claim or dispute described in the first sentence of this Section 14
is pending, the Company shall promptly reimburse the Executive for all reasonable costs and expenses relating to such claim or
dispute; provided that the Executive agrees in writing that he will repay the Company in full for such reimbursement if he is not
ultimately successful to a material degree with respect to the substance of such claim or dispute. In addition, the Company shall
promptly reimburse the Executive for all reasonable costs and expenses (including, but not limited to, attorneys’ fees) incurred
by the Executive in preparing responses to Internal Revenue Service (“IRS”) audits of the Executive’s personal
income tax returns or otherwise defending such tax returns in any administrative proceeding or civil litigation relating thereto
that is occasioned by or connected with an audit by the IRS of one or more income tax returns of the Company. The provisions of
this Section 15 shall survive the expiration or termination of this Agreement and the Period of Employment.

 

    	 

    	 

    

 

16. Successors.

 

16.1 This
Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable
by the Executive’s heirs and legal representatives.

 

16.2 This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

16.3 As
used in this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets
as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

17. Representations.

 

17.1 The
Company represents and warrants that (a) the execution of this Agreement has been duly authorized by the Company, including
action of the Board, (b) the execution, delivery and performance of this Agreement by the Company does not and will not violate
any law, regulation, order, judgment or decree or any agreement, plan or corporate governance document of the Company, and (c) upon
the execution and delivery of this Agreement by the Executive, this Agreement shall be the valid and binding obligation of the
Company, enforceable in accordance with its terms, except to the extent enforceability may be limited by applicable bankruptcy,
insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the effect of general principles
of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

 

17.2 The
Executive represents and warrants to the Company that (a) the execution, delivery and performance of this Agreement by the
Executive does not and will not violate any law, regulation, order, judgment or decree or any agreement to which the Executive
is a party or by which he is bound, (b) the Executive is not a party to or bound by any employment agreement, noncompetition
agreement or confidentiality agreement with any person or entity that would interfere with this Agreement or his performance of
services hereunder, (c) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid
and binding obligation of the Executive, enforceable in accordance with its terms, except to the extent enforceability may be limited
by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the
effect of general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

  

18. Miscellaneous.

 

18.1 This
Agreement shall be governed by and construed in accordance with the laws of the state of Pennsylvania, without reference to principles
of choice of law. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective
successors or legal representatives.

 

18.2 All
notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed to have been
duly given or made the second business day after the date of mailing, if delivered by registered or certified mail, postage prepaid;
upon delivery, if sent by hand delivery; upon delivery, if sent by prepaid courier, with a record of receipt; or the next day after
the date of dispatch, if sent by cable, telegram, facsimile or telecopy (with a copy simultaneously sent by registered or certified
mail, postage prepaid, return receipt requested), to the parties at the following addresses:

 

    	 

    	 

    

 

if
to the Executive, to: 

 

Mark
A. Smith 

1001
Carlisle Street 

Natrona
Heights, PA 15065 

Telephone: 724-226-2067

 

if
to Company, to:

 

Geospatial
Mapping Systems, Inc. 

229
Howes Run Road 

Sarver,
PA 16055 

Attention:
General Counsel 

Facsimile: 724-353-3049 

Telephone: 724-353-3400

 

Any party hereto
may change the address to which notice to it, or copies thereof, shall be addressed, by giving notice thereof to the other parties
hereto in conformity with the foregoing.

 

18.3 None
of the provisions of this Agreement shall be deemed to impose a penalty.

 

18.4 The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

 

18.5 Any
party’s failure to insist upon strict compliance with any provision hereof shall not be deemed to be a waiver of such provision
or any other provision hereof.

 

18.6 This
Agreement supersedes any and all prior communications, understandings, and agreements, written or oral, between the Company and
the Executive with respect to the subject matter hereof, and contains the entire understanding of the Company and the Executive
with respect to the subject matter hereof. In the event of any inconsistency between this Agreement and any plan, policy, arrangement
or practice of the Company, the relevant provision of this Agreement shall control.

 

18.7 This
Agreement may be executed simultaneously in two (2) or more counterparts, each of which shall be deemed an original but all
of which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties
have executed this Agreement as of the date first above written.

	 	 	 	 
	 	GEOSPATIAL MAPPING SYTEMS, INC.
	 	 	 
	 	By:	 	
	 	Its:	 	PRESIDENT
	 	 
	 	MARK A. SMITH

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