Document:

Geospatial Corporation S-1

EXHIBIT
10.7

 

CONVERSION AGREEMENT

 

This
Conversion Agreement ("Agreement") is made and entered into as of August, 20, 2013, by and among Geospatial Holdings,
Inc., a Nevada corporation (the "Company"), Geospatial Mapping Systems, Inc., a Delaware corporation and a wholly
owned subsidiary of the Company ("GMS") and Mark A. Smith, Chairman and Chief Executive Officer of the Company
("Smith").

 

RECITALS

 

WHEREAS,
Smith holds
the following notes
evidencing the Company
's
obligation to
repay certain loans
made by Smith to
the Company: (i) an unsecured convertible note dated October 30, 2009 in the original
principal amount of One Million Dollars ($1,000,000 (the "Convertible Note") and (ii) an unsecured demand note
dated October 30, 2009 in the original principal amount of $128,262.70
(the "Demand Note"); and

 

WHEREAS,
the total
principal and accrued
interest owed by
the Company as
of August 1, 2013
(the "Effective
Date")
(i) under the Convertible
Note is $40,638.l 0 (the "Convertible
Note Amount") and (ii) under the Demand Note is $173,011.45 (the "Demand
Note Amount"); and

 

·

WHEREAS,
subsequent to the issuance
of the Convertible
Note and the
Demand Note, Smith
made additional loans
to the Company
in the
amount of $140,000, which Joans together with accrued and
unpaid interest thereon, aggregate $184,203.78 as of August 1, 2013 (the "Additional
Loan Amount"); and

 

WHEREAS,
GMS and
Smith entered into
a Lease Agreement
dated May 1,
2006 (the "Lease
Agreement") pursuant
to which Smith
leased an office to the Company; and

 

WHEREAS,
from December
1,
2009 to June
30, 2012, Smith incurred
expenses and made
disbursements in the course of performing
his duties for the
Company, which have not been reimbursed to Smith by the Company and Smith was
not paid rent by GMS as required by the terms
of the Lease Agreement , all of which unreimbursed and
unpaid amounts aggregate $282,156.20 (the "Unpaid Expense
Amount"); and

 

WHEREAS,
from July
1, 2012
through the Effective
Date, Smith has
incurred expenses and made
disbursements in
the course of
performing his duties for the Company,
which has not been reimbursed to Smith by the Company and Smith was not paid
rent by GMS as required by the terms of
the Lease Agreement, all of which unreimbursed and unpaid amounts aggregate $21,366.40
(the "Recent Unpaid  Expense Amount");
and

 

WHEREAS
, GMS
has not paid
to Smith his
Base Salary as
provided for in
the Employment Agreement
dated as of December 1,
2007 between GMS and Smith (the "Employment Agreement"),
and such unpaid Base Salary aggregated (a) $573,634.70
for the
period prior to
and including
June 30,
2012 (the
"Unpaid Salary
Amount") and
(b) $97,500.00
for the
period from July
1, 2012 through the
Effective Date (the
"Recent Unpaid
Salary Amount"); and

   

    	1

    	 

    

WHEREAS,
the Company
and GMS desire
that Smith
exchange (i)
the principal
and interest owed
to him
pursuant to the
Convertible Note
and the Demand Note,
(ii) the
Additional
Loan Amount, (iii)
the Unpaid
Expense Amount
and (iv) the
Unpaid Salary Amount
for shares of
common stock,
par value $.001 per
share,
of the Company ("Common
Stock") and a
warrant to purchase shares of Common
Stock of the Company; and

 

WHEREAS,
the Company
and Smith desire
to memorialize the
Recent Unpaid Expense
Amount and
the Recent Unpaid
Salary Amount,
and agree upon
the terms of their
payment;
and

 

WHEREAS,
the Company
desires to
grant certain
registration rights
to Smith.

 

NOW
THEREFORE, for
good
and valuable
consideration,
the receipt
and sufficiency
of which
is hereby acknowledged,
the Company, GMS and
Smith hereby agrees
as follows:

 

AGREEMENT

 

		1.	CONVERSION
                                         AND RELEASE.

 

1.1              
Conversion into
Common Stock
and Warrant.  Upon
the terms and
subject to
the  conditions 
of this  Agreement
, Smith
 hereby delivers 
and surrenders to the Company
the Convertible
Note and the
Demand Note, and surrenders
and releases to the Company
his right to receive payment
of the Additional Loan Amount,
the Unpaid Expense Amount and
the Unpaid Salary
Amount, and
in exchange therefor, the
Company hereby issues and
delivers to Smith (a) 17,909,203 shares of
Common Stock (the "Conversion
Stock") and (b)
a warrant to purchase
1,790,920 shares of Common
Stock in the form of
Exhibit A
hereto (the "Warrant").

 

1.2             
Release. Smith hereby
accepts the
Conversion Stock and
the Warrant
in full payment and
satisfaction of
the Convertible
Note Amount, the
Demand Note Amount, the Additional Loan Amount,
the Unpaid Expense Amount and the Unpaid
Salary Amount, and releases
and discharges the
Company, GMS and
all of their respective employees,
agents, successors,
assigns, affiliates,
directors and
officers from and against
any and all other obligations or
liabilities relating to the Convertible Note
, the Demand Note,
the Additional Loan
Amount, the Unpaid
Expense Amount and the Unpaid Salary
Amount. Notwithstanding anything in this Agreement
to the contrary,
nothing contained herein
is intended to, and
this Agreement shall
not operate
to, release any claims
Smith may have to enforce any rights
conferred under this Agreement.

    	2

    	 

    

 

1.3              
Payment of Taxes.
To the
extent  that  the
issuance
of the
 Conversion
Stock and the
Warrant
to
Smith would be
subject to
taxes imposed
against Smith under
the Internal
Revenue Code
of 1986,
as amended,
the Federal
 Insurance Contributions Act,
as amended,
and any
state or local tax
code
or regulation, if applicable
(collectively, the "Taxes"),
then Smith
shall be
entitled to receive a
payment from
the Company
(the "Gross-Up Payment")
in an
amount such that after payment
by Smith of all federal,
state and local taxes
(including income taxes and
excise
taxes) imposed
on the
Gross-Up Payment,
Smith retains an amount of the
Gross-Up Payment
equal to the Taxes.

 

1.4              
Repayment of
Recent Unpaid
Expense Amount
and Recent Unpaid
Salary Amount.The
Company hereby
acknowledges its
obligation and liability to pay
the Recent Unpaid Expense Amount and the
Recent Unpaid Salary Amount
to Smith and agrees to
use its reasonable commercial efforts to pay such
amounts to Smith as soon as possible.

 

1.5             
Registration Rights. Concurrently with
the execution and
delivery of
this Agreement,
the Company
and Smith are entering
into a Registration Rights
Agreement in the form of Exhibit
B hereto (the
"Registration Rights Agreement").

 

 

		2.	REPRESENTATIONS
                                         AND WARRANTIES OF THE COMPANY. The Company
                                         hereby
                                         represents and
                                         warrants to
                                         Smith that
                                         as of
                                         the Effective
                                         Date:

 

2.1             
Organization.The Company
is duly organized,
validly existing and
in good standing
under the
laws of
the State
of Nevada. The Company
has full power and
authority to own or
lease its
properties and to carry
on its
business as presently
conducted.

 

2.2             
Due  Authorization 
and  Valid
 Issuance.The
Company has
all requisite corporate
power and
authority to execute,
deliver and
perform its obligations under
this Agreem ent,
the Warrant and
the Registration Rights Agreement. This
Agreement, the Warrant and
the Registration Rights Agreement have
been duly authorized
and validly executed and delivered
by the Company and
each constitutes the 1ega1, valid and binding agreement
of the Company enforceable
against the Company in accordance
with its terms, except as
(a) rights to indemnity and contribution
may be limited by state or federal
securities Jaws of the public policy
underlying such
laws, (b) enforceability may be limited
by applicable bankruptcy , insolvency ,
reorganization , moratorium
or similar laws affecting
creditors' rights and
contracting parties' rights generally and
(c) enforceability may
be subject to general
principles of
equity (regardless
of whether such enforceability
is considered
in a proceeding in
equity or at law).

 

2.3               Capitalization. Immediately prior to giving effect to the transactions contemplated by this Agreement , the authorized capital stock of the Company consists
of (i) 100,000,000 shares of common
stock, par value $.001
per share, of which 45,871,374
shares are issued and outstanding, and
(ii) 5,000,000 shares of preferred stock, par value $.001
per share, 5,000,000 of
which are designated as "Series B Convertible Preferred Stock",
of
which 4,460,429 are
issued and outstanding.
As of the
date hereof, 15,000,000
shares of common
stock are reserved for issuance
upon exercise of stock options granted or
to be granted under the Company's Stock Incentive Plans.
As of
the date hereof there are outstanding warrants
to purchase 5,942,242 shares of common
stock and outstanding warrants to purchase 446,023
shares of Series B Convertible Preferred Stock.

 

    	3

    	 

    

2.4             
Issuance of
Shares.The shares of
Conversion
Stock, when
issued,
sold and delivered
in accordance with the
terms of this Agreement, and the shares
of Common Stock issuable pursuant to the Warrant, when issued,
sold and delivered
in accordance with the terms of the Warrant, will be duly authorized, validly
issued, fully-paid and nonassesable.

 

2.5              
Private Offering.
Assuming the correctness of
the representations and warranties
of Smith set
forth in Section
3 hereof, the issuance of the
Conversion Stock and the Warrant is exempt from registration
under the Securities Act of 1933, as
amended , and the
rules and regulations promulgated thereunder (the
"Securities Act"). Neither the Company
nor any person acting on behalf of
the Company has offered or sold the Conversion Stock
or the Warrant by any form
of general solicitation or general advertising.

 

		3.	REPRESENTATIONS
                                         AND WARRANTIES OF  SMITH. The Company
                                         hereby
                                         represents and
                                         warrants to
                                         Smith that
                                         as of
                                         the Effective
                                         Date:

 

3.1             
Authorization. Smith
has the requisite
legal power and
authority to enter into
this Agreement and
this Agreement constitutes
a valid and
legally binding obligation of Smith, except
as the same may be limited
by bankruptcy, insolvency, moratorium
or other laws of general application affecting
the enforcement of creditors' rights.

 

3.2            
Conversion Stock and Warrant Not Registered;
Reliance Upon Smith's
Representations. Smith
understands and acknowledges
(i) that the
Conversion Stock and
the Warrant are
not registered or qualified under any federal, foreign or state securities laws,
(ii) that the Conversion Stock and the Warrant  are
being  issued  to Smith on the ground that
the issuance of securities hereunder is exempt
from  registration
under all applicable securities laws pursuant  to exemptions thereunder,
and (iii) that the Company's
reliance on such exemptions is  predicated on Smith's representations set forth herein.

 

3.3             
Accredited Investor. Smith is
an "accredited
investor" within the meaning
of Rule 501
of Regulation D
under the Securities Act, as presently
in effect.

 

3.4              Restricted
Securities.  Smith understands that the Conversion Stock and
the Warrant constitute restricted securities under applicable securities laws
and may not be resold or transferred unless they are first registered
on qualified under applicable securities laws
or unless an exemption from such registration or
qualification is available. Accordingly , Smith hereby
acknowledges that he is prepared to hold the Conversion Stock
and the Warrant
for an indefinite
period of time,
until resale is
permitted under applicable
securities laws.

 

    	4

    	 

    

3.5             
Experience; Risk.
Smith has
such knowledge and
experience in financial and
business matters that
Smith is capable
of evaluating the
merits and risks
of his acquisition
of the Conversion Stock
and the Warrant and of protecting Smith's interests
in connection therewith. Smith
is able to fend for
himself in the transactions
contemplated by this Agreement and
has the ability to bear the economic risk
of the investment, including complete loss of the
investment.

 

3.6             
Investment. Smith
is acquiring
the Conversion
Stock and
the Warrant
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 Smith has no
present intention of
selling, granting
any participation in,
or otherwise distributing
the same.

 

		4.	RESTRICTED  SECURITIES.

 

4.1             
Restrictive Legends.

 

(a)                
Unless and
until otherwise
permitted by
this  Section,  each certificate
for Conversion Stock
issued to
Smith or any
subsequent transferee of
any such certificate shall be stamped
or otherwise imprinted with a legend
of substantially the following form:

 

"THE
SHARES  REPRESENTED 
BY  THIS  CERTIFICATE HAVE
NOT BEEN REGISTERED 
UNDER  THE  SECURITIES 
ACT OF 1933
OR ANY OTHER APPLICABLE FEDERAL OR STATE SECURITIES
LAWS, AND THUS MAY NOT BE TRANSFERRED UNLESS REGISTERED
UNDER THE SECURITIES ACT OR 1933 AND
SUCH OTHER LAWS OR UNLESS AN EXEMPTION FROM
REGISTRATION IS AVAILABLE ."

 

(b)                
In addition
to the legend
required by this
Section 4.1,
each certificate
for Company
shares issued under
or pursuant to this Agreement to
Smith or any
subsequent transferee shall be stamped or
otherwise imprinted with any legend required pursuant to applicable state
corporation and securities laws.

 

4.2              
Transfer.The
Company may
decline to acknowledge
or register a
transfer of
any Company
shares bearing
any legend pursuant
to Section 4.1,
and may instruct any transfer agent for
its Company shares
to decline the same, unless the Company is
reasonably satisfied that the Company shares
being transferred
have been registered or
are exempt from registration
under applicable securities laws.

 

4.3              Removal of Legends. Whenever the
legend described in Section 4.1 shall no longer be required by law, the
holder of any particular Company
shares bearing such legends
shall be entitled
to receive
from the Company,
without
expense to such
holder,
one or
more new certificates for such particular
Company shares not bearing restrictive legends
pursuant
to Section
4.1 hereof.

 

    	5

    	 

    

 

		5.	MISCELLANEOUS.

 

5.1             
Further  Instruments  and 
Actions.The
parties agree to
execute such
further instruments
and to take such further action as
may reasonably be necessary to carry out the intent of this Agreement.

 

5.2             
Expenses. Each party
hereto agrees to
pay its expenses
incurred in connection with
this Agreement and
the documents and
transactions contemplated herein.

 

5.3             
Notices. All
notices and other
communications required
or permitted hereunder shall
be given
in writing
and
shall be delivered
by person al
delivery, facsimile,
electronic mail,
overnight delivery
service, or U .S.
mail service,
addressed as follows:

 

The
Company:
Geospatial Holdings,
Inc. 229
Howes Run Road Sarver,
PA 16055

Attn:
Thomas Oxenreiter,
Chief Financial
Officer T: 724-353-3400

F:
724-353-3049

Email:
toxenreiter @geospatialcorporation
.com

 

Smith:

Mark
A. Smith 1001 Carlisle
Street

Natrona
Heights,
PA 15065 T:
724-994-8055

H:
724-226-2067

Email:
mark@gooselakeventures.com

 

Any
notice or other
communication delivered in
accordance with this
Section 5 shall
be deemed
to have been
given upon actual receipt or refusal
of such delivery.

 

5.4             
Governing Law.
This Agreement
shall be governed
in all respects
by the
laws of the
Commonwealth of Pennsylvania
without giving effect to
the conflicts of laws principles hereof.

 

5.5             
Successors and Assigns; Assignment. No party
may
assign this
Agreement or any
rights or obligations
hereunder
without the prior written consent
of the other
party,
which consent may
not be unreasonably
withheld, including
by
merger or consolidation.  Subject to
the preceding , this Agreement shall be
binding upon,
inure to

 

    	6

    	 

    

IN
WITNESS WHEREOF, the
parties hereto have
executed this Agreement
as of the day
and year written
above.

 

 

	COMPANY:	SMITH:	 
	 	 	 
	GEOSPATIAL HOLDINGS, INC.	 	 
	 	 	 
	By:	/s/ Thomas R. Oxenreiter	By:	/s/ Mark A. Smith	 
	 	Thomas R. Oxenreiter: CFO	 	Mark A. Smith	 
	 	 	 
	GMS:	 	 
	 	 	 
	GEOSPATIAL MAPPING SYSTEMS, INC.	 	 
	 	 	 
	By:	/s/ Thomas R. Oxenretier	 	 
	 	Thomas R. Oxenreiter: CFO	 	 
	 	 	 
	 	 	 

 

    	7

    	 

    

 EXHIBIT
A

 

FORM
OF WARRANT

 

See
Attached

 

 

    	8

    	 

    

 

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,
2013

 

 

COMMON
STOCK PURCHASE 
WARRANT

 

For
value received,
Geospatial Holdings,
Inc. (the "Company"),
a Nevada corporation, hereby
certifies that(the
"Holder")
or its
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,   shares
of the Company's Common Stock,
par value $.001 per share ("Common Stock"),
at a price per share equal to $0.25 (the
"Exercise  Price").This Warrant
is subject the
following terms and
conditions. This Warrant is issued pursuant to
that certain Conversion Agreement dated as
of August,
2013,
by and among
the Company, Geospatial
Mapping Systems, Inc.
and the Holder (the "Conversion Agreement")
. This Warrant
is subject to the
terms of the Conversion Agreement
and the following additional
terms and conditions.

 

I
.            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 Warrant Issue
Date and ending
on the date
that is the
earliest to occur of
(i) 5:00
p.m. (prevailing local time at the
principal executive office
of the Company) on the
fifth anniversary of the Warrant Issue Date, (ii)
a Change in Control,
or (iii)
the closing of
a Qualified Public Offering (as
defined in the Certificate
of Designation of Series B Preferred
Stock of the Company).

 

    	9

    	 

    

		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 the surrender
of this Warrant, with the
form of Subscription Agreement attached hereto as Annex A duly completed and
executed by the
Holder, to the Company at its principal executive
office, accompanied by 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 Stock being purchased pursuant
to such exercise of the Warrant.

 

(b)              
This Warrant may
be exercised for
less than the
full number of shares
of Common Stock
first shown 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 payment of
the Exercise Price,
and in any event within 20 business days thereafter, 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 or Qualified
Public Offering, 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.

    	10

    	 

    

		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 this Section 3, 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.

 

    	11

    	 

    

(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 (11100) 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.

 

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, such number of its duly authorized shares
of Common Stock as from time to time shall be  issuable
upon the exercise of this
Warrant. All of the shares of
Common Stock issuable upon exercise of this Warrant, 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(b) 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.

 

 

    	12

    	 

    

(b)              
Agreements. As a
condition to the
Company's obligation to
issue shares of Common Stock upon
exercise hereof, the
Holder shall execute
the Subscription Agreement attached hereto
as Annex A.

 

(c)               
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 conversion 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.

 

(d)              
Compliance with Securities Laws.The Holder,
by acceptance
hereof,
acknowledges that
this Warrant and
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 or 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 and given
as provided in the Conversion Agreement .

 

(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.

    	13

    	 

    

 (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]

 

    	14

    	 

    

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
    Holdings ,
    Inc
	 	 
	 	By:	/s/
    Mark A. Smith
	 	Name:	Mark
    A. Smith
	 	Title:	Chief
    Executive Officer

 

    	15

    	 

    

 ANNEX
A

 

SUBSCRIPTION
AGREEMENT

 

 

 

Date: _____________________

 

To:
_____________________ 

 

 

The
undersigned (the "Purchaser"),
pursuant to the
provisions set forth
in the attached  Warrant
, hereby
 irrevocably  elects 
(a) to purchaseshares
of Common Stock (the "Warrant Shares")
covered by such  Warrant and herewith
makes payment of $  , representing the
full purchase price for such shares
at the price per share provided for in such Warrant or (b) to exercise the Warrant
with respect to ________ shares of Common Stock, pursuant to Section 2(b) of the Warrant
[STRIKE (a) OR (b) AS APPLICABLE] .

 

Purchaser
represents and warrants
to the Company
as follows:

 

1.                                  
Investment Representations.
Purchaser understands
that the Warrant Shares
have not been registered
under the Securities
Act. Purchaser also
understands that the Warrant
Shares are being offered and sold
pursuant to an exemption from
registration contained in the Securities Act
based in part upon Purchaser's representations
contained in this Agreement.

 

2.                                   
Experience; Risk.
Purchaser has such
knowledge and experience
in financial and business
matters that Purchaser
is capable of
evaluating the merits and risks
of the purchase of the Warrant Shares and of protecting Purchaser's
interests in connection therewith. Purchaser
is able to fend for itself in the
transactions contemplated by this Agreement and has the ability
to bear the economic risk of the investment,
including complete loss of the investment.

 

3.                                    
Investment. Purchaser
is acquiring the
Warrant Shares 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 Purchaser has no present intention
of selling, granting any participation in, or otherwise distributing
the same. Purchaser understands that the Warrant
Shares have not been registered under the Securities Act and applicable state securities laws
(collectively, the "Acts")
by reason of a specific exemption from the
registration provisions of the Acts which depends upon, among other things, the bona
fide nature of the investment intent and the
accuracy of Purchaser's representations as expressed herein.

 

 

    	16

    	 

    

4.                                    
 Information.
Purchaser has been
furnished with
all information
which it deems necessary
to evaluate
the merits
and risks
of purchasing the
Warrant Shares and has
had the opportunity to ask
questions concerning the Warrant Shares
and the Company and
all questions posed have
been answered to its satisfaction. Purchaser
has been given the
opportunity to obtain
any additional information it deems necessary
to verify the
accuracy of
any information obtained concerning
the Warrant Shares and the Company. Purchaser has
such knowledge and
experience in financial
and business matters that
it is able to
evaluate the
merits and risks of
purchasing the Warrant
Shares and
to make an
informed decision relating
thereto.

 

5.                                   
Restricted Securities;
Restrictions on
Transfer.  Purchaser understands
that the Warrant
Shares will be
"restricted securities"
under applicable securities laws inasmuch
as they are being
acquired from the Company
in a transaction not
involving a public offering
and that
under such laws and applicable
regulations the Warrant Shares may
be resold without registration
under the Acts
only in certain limited
circumstances. Purchaser
acknowledges that Warrant
Shares must be
held indefinitely unless subsequently registered under
the Acts or an exemption from
such registration is
available.
To the extent that
Purchaser is not
already a party
to such agreements, Purchaser agrees to
execute and deliver a counterpart
signature page, and become a party,
to such stockholder
and registration rights
agreements as
are then in effect by and among the
Company and its
stockholders.

 

6.                                   
No Public Market.
Purchaser understands that
no public market
now exists for
any of
the securities
issued by the
Company and that there is
no assurance that a
public market will
ever exist for such
securities.

 

7.                                  
Accredited Inve
stor.Purchaser
is an "accredited
investor" within
the meaning of
Rule 501
promulgated under the Securities Act.
The Purchaser has considered
the Federal and state income
tax implications of the exercise of the
Warrant and the purchase and subsequent
sale of the Warrant Shares.

 

8.                                  
Residence.
If
Purchaser is
an individual,
then Purchaser
resides in
the state
or province
identified in the address
of Purchaser set
forth below; if
Purchaser is a partnership,
corporation, limited
liability company or other entity,
then the office or
offices of Purchaser
in which its investment
decision was made is
located at
the address
or addresses of Purchaser
set forth below.

 

	 		
	 		Signature
	 	 	 
	 		Print
    name:	 
	 	 	Address:	 

 

 

    	17

    	 

    

NOTICE
OF TRANSFER

 

[To
be signed only
upon transfer of
Warrant]

 

 

 

FOR
VALUE RECEIVED, the
undersigned hereby sells,
assigns and transfers
unto the Assignee named
below the rights
and obligations represented by the within Warrant with respect to the number of
shares of Common Stock ofset
forth below:

 

	Name of
    Assignee	Address	No. of
    Shares

 

and
appoints ____________________  attorney to transfer said right on the warrant
register of ____________________ with full
power of substitution
in the premises.

 

 

 

 

Dated : ________________

 

(Signature
must conform in
all respects to name
of Holder as
specified on the
face of the Warrant)

 

Address: 

_____________________________ 

_____________________________

_____________________________

 

 

 

 

 

 

 

 

 

 

    	18

    	 

    

EXHIBIT B

 

FORM
OF REGISTRATION RIGHTS AGREEMENT

 

See
Attached

 

 

 

 

 

 

 

 

 

 

 

    	19

    	 

    

REGISTRATION
 RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT
(this "Agreement")
is entered into as
of this __
day of August, 2013
(the "Effective Date")
by and between Geospatial Holdings, Inc.,
a Nevada corporation (the
"Company"),
and Mark A. Smith,
an individual resident of Natrona Heights, Pennsylvania ("Smith") .

 

AGREEMENT

 

WHEREAS,
the Company,
Geospatial
Mapping Systems, Inc.
and Smith are
parties to a
Conversion Agreement dated the date
hereof (the "Conversion Agreement"); and

 

WHEREAS,
the Conversion
Agreement requires that,
upon execution of
the Conversion Agreement, Geospatial
and Smith will
enter into this Agreement.

 

NOW,
THEREFORE, in
consideration of the
mutual covenants and
agreements set forth herein
and for good
and valuable
consideration , the
receipt and adequacy of which is hereby
acknowledged, the parties hereby agree
as follows:

 

ARTICLE
I DEFINITIONS

 

1.1Definitions.
As used in
this Agreement, and
unless the context
requires a different
meaning, the following
terms have the meanings indicated:

 

"Agreement"has
the meaning set
forth in the
preamble .
"Board"means
the board
of directors
of the Company.

 

Company.

 

"Common
Stock"
means the
common stock,
par value $.00l
per share,
of the "Company"
has the meaning set forth in the preamble.

 

"Contractual
Obligation" means as
to any Person,
any material provision
of any security issued
by such Person
or any material
provision of any agreement, lease of
real or personal property, undertaking, contract, indenture,
mortgage, deed of trust or other instrument
including , without limitation, the organizational or governing
documents of such Person, to
which such Person is a party or by which it or any of its property
is bound.

 

"Effective
Date" has the
meaning set forth
in the preamble.

 

"Exchange
Act" means the
Securities Exchange Act
of 1934, as
amended. "Governmental
Authority"
means any court, tribunal, arbitrator, authority, agency, commission, official or other
instrumentality of any government of any nation, state, city,
locality or
other political subdivision.

 

    	20

    	 

    

"Holder"
means
(i) any person
owning of
record
Registrable Shares that
have not been sold
to
the public or (ii) any assignee
of record of
such Registrable Shares in accordance
with Section
4.9 hereof.

 

"Initial
Offering"
means the
Company's first
firm commitment underwritten public offering
of its
Common Stock registered
under the Securities
Act.

 

"Person"
means any
individual, firm,
corporation, partnership
, trust
, incorporated
or unincorporated association,
joint venture,
joint stock
company, Governmental Authority or other entity of
any kind, and shall include
any successor (by merger
or otherwise) of such entity.

 

"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.

 

"Registrable
Shares"
means (a) Common
Stock of
the Company
issued to
Smith pursuant to the
Conversion Agreement;
(b) any
other shares of
Common Stock hereafter
owned or held by Smith;
and (c) any
"Registrable Shares"
as defined in any
other agreement pursuant to which the
Company has granted
registration rights. Notwithstanding the foregoing,
Registrable Shares shall not
include any securities
sold by a Person to the
public either pursuant
to a registration statement
or Securities Act Rule 144 or
sold in a private transaction in
which the transferor's rights pursuant to
Section IV of this
Agreement are not assigned.

 

"Registration
Expenses" means
all expenses
incurred by
the Company 
in complying
with Sections 4.1,
4.2 and
4.3 hereof,
including, without
limitation , all
registration and filing fees,
printing expenses, fees
and disbursements of counsel
for the Company
, reasonable fees and
disbursement s of a
single special counsel for the Holders,
blue sky fees and expenses
and the expense of
any special
audits incident
to or
required by any
such registration.

 

"Requirements
of Law"
means,
as to
any Person,
the provisions
of the charter
and bylaws
or other organizational or governing
documents of
such Person, and
any law,
treaty, rule, regulation,
right , privilege,
qualification, license
or franchise, order,
judgment, or determination of
an arbitrator or a
court or other Governmental Authority applicable
to or binding upon
such Person or
any of its property (or to which such Person
or any of its property is
subject) or applicable to any or
all of the transactions
contemplated by,
or referred to
in, this Agreement.

 

"Restricted
Period" has
the meaning set
forth in Section
4.9.

 

"SEC"
or "Commission"
means the
Securities and
Exchange Commission.

 

"SEC
Reports"
shall mean
all reports
required to
be filed
with the
SEC under
the Securities Act and
the Exchange Act.

 

"Securities
Act" means
the Securities Act
of 1933,
as amended.

 

"Selling
Expenses" means
all underwriting
discounts and
selling commissions applicable
to the sale.

 

"Violation"
bas the meaning
set forth in
Section 4.7(a) .

 

    	21

    	 

    
ARTICLE
II

REPRESENTATIONS
AND WARRANTIES OF
THE COMPANY

 

The
Company hereby represents
and warrants to
Smith follows:

 

2.1              
Authorization; Binding Effect.
The Company has
full power and
authority to enter into
and perform its
obligations under this Agreement.
This Agreement constitutes the valid and legally binding obligation of the Company, enforceable against the Company in accordance
with its terms except (i) as may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting enforcement of creditors' rights generally, and (ii)
as may be limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.

 

2.2             
Non-contravention.The execution,
delivery and
performance of this
Agreement by the
Company and the
consummation of the
transactions contemplated hereby, do
not and will not (i) violate
any Requirements of Law applicable to the
Company , or (ii)
result in a material
breach or default under any of the Contractual
Obligations of the Company, or under any
order, writ, judgment,
injunction, decree, determination or award of any
Governmental Authority , in
each case applicable to the Company
or its properties.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF SMITH

 

Smith
hereby represents and
warrants as
of the date
hereof as follows:

 

3.1             
Authorization;  Binding  Effect.
 Smith  has 
the requisite  legal 
power  and authority 
to  enter  into 
and  perform  his 
obligations under this Agreement.  This Agreement
constitutes the valid
 and legally binding 
obligation of Smith, enforceable against
Smith in accordance
with its terms, except (i) as may
be limited by applicable bankruptcy , insolvency,
reorganization, moratorium, and other laws of
general application affecting enforcement of
creditors' rights generally,  and  (ii)
as may be 
limited by laws relating to the availability  of specific
performance, injunctive relief, or other equitable remedies .

 

3.2               
Non-contravention.The execution, delivery
and performance of
this Agreement by Smith,
and the consummation
of the transactions
contemplated hereby ,
do not and will not (a) violate any Requirements of Law
applicable to Smith, or (b) result in a material breach or default under any
of the Contractual Obligations of Smith, or under any order, writ,
judgment, injunction, decree, determination or award
of any Governmental Authority, in each case applicable to Smith
or Smith's properties .

 

ARTICLE
IV

REGISTRATION;
COVENANTS OF THE
COMPANY

 

4.1        
Registration.
The Company
shall, within six
(6) months following the Effective
Date, file a
registration statement under
the Securities Act covering the
Registrable Shares and thereafter shall use its
reasonable commercial efforts to cause  such registration statement
to be declared effective as soon thereafter as reasonably practicable. Such registration
shall provide for sale or distribution of such Registrable Shares on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act to the extent it is available.

    	22

    	 

      

4.2        
Piggyback
Registration.
The
Company shall notify
all
Holders
of Registrable Shares 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 each such Holder an opportunity
to include in such registration
statement all or part of such Registrable
Shares held by
such Holder
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 .
Each Holder
desiring to include in any such
registration statement all or any
part of the Registrable
Shares held by it shall, within fifteen
(15) days after the above-described
notice from the Company,
so notify the Company in writing. If
a Holder decides not to
include some or all of its Registrable
Shares in any registration statement thereafter filed by the Company or decides to withdraw its Registrable
Shares from any underwriting or registration pursuant
to Section 4.1,
such Holder shall
nevertheless
continue to have the right
to include any Registrable 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

 

a.                  
Underwriting.If
the registration statement
under which the Company
gives notice
under this Section
4.
2
is for an underwritten offering, the Company
shall so advise the Holders of Registrable Shares.
In such event, the right of
any such Holder to be included
in a
registration pursuant to this Section 4.2 shall be
conditioned upon such Holder's
participation in such underwriting and the inclusion of
such Holder's Registrable Shares in the underwriting to the extent provided
herein . All
Holders proposing to distribute their Registrable Shares
through such underwriting shall
enter into
an underwriting agreement in customary
form with the underwriter or underwriters selected
for such underwriting by
the Company. Notwithstanding any other provision of this Agreement, if the underwriter
determines in good faith that marketing
factors require a limitation
of the number of securities to be underwritten
and advises
the
Holders of Registrable Shares in writing,
the number of shares that may be included in the underwriting
shall be allocated ,
first, to the Company; second,
to the Holders on a pro rata basis based
on the total number of Registrable Shares
held by the Holders; and third, to any holder of securities of
the Company (other
than a Holder)
on a pro rata basis .
In making any such reduction ,
all shares held by employees of
the Company
which are not Registrable
Shares shall first be excluded.
No such reduction
shall (i) reduce
the securities being
offered
by the Company for its own account to be
included in the registration and underwriting
or (ii) reduce
the amount of Registrable Shares of
the selling Holders included in the registration
below thirty three and one-third percent (33 1/3%)
of the
total amount of securities included
in such
registration, unless such offering is the Initial Offering, in which
event any
or all of the Registrable Shares of the
Holders may be excluded. If
any Holder disapproves of the terms
of any such underwriting ,
such Holder
may elect to
withdraw therefrom by  written notice to
the

    	23

    	 

    

--'

 

Company
and the underwriter
, delivered
at least
ten (10)
business days
prior to
the effective date
of the registration
statement. Any Registrable
Shares excluded or withdrawn from such
underwriting shall
be excluded
and withdrawn from the registration. For
any Holder which
is a partnership
, limited liability company
or corporation, the partners
and members, retired
partners and members
and shareholders of such Holder,
or the estates and family members
of any such partners and
members and retired partners and
members and any trusts
for the benefit of
any of the foregoing
person shall be deemed to be a single "Holder,"
and any pro rata reduction with respect to such "Holder" shall be
based upon the aggregate amount of shares carrying
registration rights owned by
all entities and individuals
included in such "Holder,” as
defined in this sentence.

 

b.
 Right to
Terminate Registration.  The
Company shall
have the
right to
terminate or withdraw
any registration initiated
by it under
this Section 4.2
prior to the effectiveness
of such registration whether
or not any
Holder has elected to
include securities in such registration.
The Registration Expenses
of such withdrawn registration shall be borne by
the Company in accordance
with Section 4.4 hereof.

 

4.3        
Form S-3
Registration.
If the
Company shall
receive from
Holders of
at least seventy
five percent
(75%) of
the Registrable
Shares then
outstanding a written request or requests
that the Company effect a registration
on Form S-3 or any
similar short-form registration statement
and any related qualification
or compliance with
respect to
all or
a part of the Registrable
Shares owned by such
Holder or Holders,
the Company will
:

 

a.                  
promptly give written
notice of the
proposed registration, and
any related qualification
or compliance,
to all
other Holders of Registrable Securities; and

 

b.                  
as soon
as practicable,
effect such
registration and
all such qualifications
and compliances
as may
be so requested
and as would
permit or facilitate the
sale and distribution
of all or
such portion of such Holder's
or Holders' Registrable Shares
as are specified in such request,
together with all or such
portion of the Registrable
Shares of any other
Holder or Holders
joining in such request
as are specified in a written
request given within fifteen
(15) days after receipt
of such written
notice from
the Company;
provided , however,
that the Company shall not
be obligated to
effect any such
registration, qualification or
compliance pursuant to
this Section 4.3: 

 

Holders,
or

 

(i)              
if Form 
S-3  is  not 
available  for  such
 offering  by
 the 

 

(ii)             
if the
Holders, together with
the holders
of any other securities
of the
Company entitled to
inclusion in such
registration, propose
to sell
Registrable Shares and
such other securities (if any)
at an aggregate price to the public
of less than
five hundred thousand dollars
($500,000), or

 

(iii)            
if the Company
shall furnish
to the Holders
a certificate signed
by the chairman
of the Board
of the
Company or
its chief executive officer stating that
in the good faith judgment of
the Board of the
Company, it would
be seriously detrimental
to the Company and its shareholders for such
Form S-3 registration to be effected at such time,
in

    	24

    	 

    

which event
the Company shall
have the right
to defer the
filing of the
Form S-3 registration statement
for a period of not
more than ninety (90) days after receipt
of the request of the Holder or Holders
under this Section 4.3; provided,
that such right to delay
a request shall be exercised by the Company not more than once in any twelve (12) month
period, or

 

(iv)            
if the
Company has, within
the twelve (12)
month period preceding the
date of such
request, already effected
one (1) registration
on Form S-3
for the Holders pursuant to this Section 4.3.

 

c.                  
Subject to the
foregoing, the Company
shall file a
Form S-3 registration statement
covering the Registrable
Shares and other securities so requested to be registered as soon as practicable
after receipt of the request or requests of the Holders. Registrations effected
pursuant to this Section 4.3
shall not be counted as demands for registration
or registrations effected pursuant to Section 4. 1 or Section 4.2,
respectively.

 

4.4        
Expenses of Registration.Except as
specifically provided herein,
all Registration Expenses incurred
in connection with
any registration, qualification
or compliance pursuant to
Sections 4.1, 4.2
or 4.3 herein shall be borne by
the Company. All
Selling Expenses applicable to Registrable
Shares sold by Holders incurred in connection
with any registrations hereunder shall be borne
by the Holders of the securities so registered
pro rata on the basis of the number of
shares so registered.

 

4.5         
Obligations of
the Company. Whenever
required to effect
the registration of any
Registrable Securities, the
Company shall,
as expeditiously
as reasonably possible:

 

a.                  
Prepare and
file with the
SEC a registration
statement with respect to
such Registrable Shares
and use its
best efforts to
cause such registration
statement to become effective as
soon as possible, and in any event within thirty
(30) days of the date on which the obligation to effect such registration arises,
and, upon
the request of
the Holders of a
majority of the Registrable Shares
registered thereunder, keep
such registration statement
effective for up to one
hundred eighty (180) days
or, if a
shelf registration pursuant to Securities
Act Rule 415,
until the Holder or Holders have completed the distribution related thereto .

 

b.                  
Prepare and
file with the
SEC such amendments
and supplements to such
registration statement and
the prospectus used
in connection with such registration
statement as may be necessary to comply with the provisions of the Securities Act
with respect to the disposition of all securities
covered by such registration statement for
the period set forth in paragraph (a) above.

 

c.                   
Furnish to
the Holders such
number of copies
of a prospectus, including
a preliminary prospectus,
in conformity with
the requirements of the Securities
Act, and such other documents as they may reasonably request in order to facilitate
the disposition of Registrable Shares owned by them.

 

d.                  
Use its
best efforts to
register and qualify the
securities covered by such
registration statement under
such other securities
or Blue Sky
laws of such jurisdictions as shall be reasonably requested
by the Holders.

    	25

    	 

    

e.                  
 In
the event of
any underwritten public
offering, enter
into and perform
its obligations under
an underwriting agreement , in
usual and customary form,
with the managing underwriter(s) of such offering.
Each Holder participating in such
underwriting  shall also enter into
and perform its obligations
under such an agreement, provided
that such underwriting agreement shall not provide for indemnification or contribution
obligations on the part of the Holders greater
than the obligations set forth in
Sections 4.7(b) and (d).

 

f.                  
Notify each
Holder of Registrable
Shares covered by
such registration statement at
any time when
a prospectus relating
thereto is required to be delivered under
the Securities Act of the happening of any event as a result of which the prospectus
included in such registration statement, as
then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in
the light of the circumstances then existing and correct such
misrepresentation or omission as expeditiously as
reasonably possible .

 

g.                  
Use its
best efforts to
furnish,
on the
date that such
Registrable Shares are
delivered to the
underwriters for sale,
if such securities are being sold through underwriters ,
(i) an opinion,
dated as of such date,
of the counsel representing
the Company for the purposes of such registration ,
in form and substance as is customarily
given to underwriters in an underwritten public offering,
addressed to the underwriters
, if any,
and (ii) to the
Holders requesting registration of Registrable Securities,
a letter dated as of such date,
from the independent certified public
accountants of the Company, in form and substance as is customarily given by
independent certified public accountants to underwriters in an underwritten public
offering addressed to the underwriters.

 

h.                  
Cooperate and
assist in any
filings to be
made with the
Financial Industry Regulatory Authority,
Inc.

 

i.                    
Cause all
such Registrable Shares
to be listed
on each securities exchange
on which similar
securities issued
by the Company are then listed, or cause such
Registrable Shares to be authorized for trading on the Nasdaq Stock Market if
any similar securities issued by the Company are
then so authorized, if requested by the Holders
of a majority of such Registrable Securities.

 

j.                    
Provide a
transfer agent and
registrar for all
Registrable Shares registered pursuant
hereunder and a
CUSIP number for
all such Registrable Securities,
in each case not later than the effective date of such registration.

 

k.                    In
connection with an
underwritten offering,
to the extent requested
by the managing
underwriters or Holders,
participate in and support
customary efforts to sell the
Registrable Shares in the offering;
including without limitation,
participating in "road
shows."
·

 

4.6        
Delay of
Registration;
Furnishing Information. 
It shall
be a  condition
precedent to the
obligations of the Company to
take any action pursuant to Section
4.1,
4.2 or 4.3
that the selling Holders shall furnish to the Company such information regarding themselves,
the

    	26

    	 

    

Registrable Shares
held by them
and the intended
method of disposition
of such securities
as shall be required
to effect the registration of
their Registrable Securities.

 

4.7         
Indemnification.
In the
event any Registrable
Shares are included
in a registration statement
under Section 4.1,
4.2 or 4.3:

a.                   
To the
extent permitted by
law, the
Company will indemnify
and hold harmless
each Holder, the
partners, stockholders, members,
officers and directors
of each Holder, any underwriter (as defined in the Securities Act)
for such Holder and
each person, if any, who
controls such Holder
or underwriter within the
meaning of the Securities
Act or the Exchange Act, against any losses,
claims, damages, or liabilities Goint or several) to which they
may become subject under the Securities Act,
the Exchange Act or other federal or
state law, insofar as such losses,
claims, damages or liabilities (or actions in
respect thereof) arise out of or are based
upon any of the following statements, omissions
or violations (collectively a "Violation")
by the Company: (i)
any untrue statement or alleged untrue statement of a material fact contained
in such registration statement, including any preliminary
prospectus or final prospectus contained therein or any amendments or
supplements thereto, (ii) the omission or alleged omission to state
therein a material fact required to be stated therein, or
necessary to make the statements therein not misleading, or (iii) any violation
or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation
promulgated under the Securities Act, the Exchange
Act or any state securities law in connection
with the offering covered by such registration statement; and the Company
will pay as incurred to
each such Holder, partner, stockholder,
member, officer, director,
underwriter or controlling person any
legal or other expenses reasonably
incurred by them in connection
with investigating or defending any such
loss, claim, damage, liability
or action; provided , however, that
the indemnity agreement contained in this Section 4.7(a)
shall not apply to amounts paid in settlement of any such loss,
claim,
damage, liability or action if such settlement is effected
without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be
liable in any such case for any
such loss, claim, damage, liability
or action to the extent that it
arises out of or is based upon a Violation
which occurs in reliance upon
and in conformity
with written information furnished
expressly for use in connection with such registration
by such Holder, partner, officer,
director, underwriter
or controlling person of such Holder.

 

b.                  
To the
extent permitted by
law, each Holder
will, if Registrable Shares
held by such
Holder are included
in the securities as
to which such registration, qualifications or compliance is being
effected, indemnify and hold harmless the Company,
each of its stockholders, directors, officers and each person, if any, who controls the Company within the meaning of the Securities
Act, any underwriter and any other Holder selling securities under such registration
statement or any of such other Holder's partners, stockholders,
members, officers
and directors, any
underwriter (as defined in the Securities Act) for such Holder
and each person, if any, who
controls such Holder or underwriter within
the meaning of the Securities Act or the
Exchange Act, against any losses,
claims, damages or liabilities joint or several)
to which the Company or any such stockholder, director,
officer, controlling person, underwriter or other
such Holder, or the partners, stockholders , members,
officers and directors of such other Holder, any underwriter (as defined in the
Securities Act) for such Holder and each person , if any,
who controls such Holder or underwriter within the meaning of the Securities Act

    	27

    	 

    

or
the Exchange Act,
may become subject
under the Securities
Act, the Exchange
Act or other federal
or state law, insofar as
such losses, claims, damages
or liabilities (or actions
in respect thereto) arise out
of or are based upon any
Violation, in each case to the
extent (and only to the extent) that such
Violation occurs in reliance upon
and in conformity
with written information furnished by
such Holder under an instrument duly executed by
such Holder and stated
to be specifically for use in connection
with such registration ; and
each such Holder will pay as incurred any legal
or other expenses reasonably incurred by the Company
or any such director, officer, controlling person, underwriter
or other Holder, or the partners, stockholders,
members, officers and directors of such other Holder,
any underwriter (as defined in the Securities Act) for such Holder and each
person, if any, who controls such Holder or underwriter
 within the meaning  of the Securities
Act  or the Exchange  Act, in connection
with  investigating or defending any such
loss, claim, damage,
liability or action if it is judicially determined
that there was such a Violation; provided
, however,
that the
indemnity agreement contained in
this Section 4.7
(b) shall not
apply to amounts
paid in settlement of any such
loss, claim, damage, liability
or action if such settlement is effected without the consent of the Holder,
which consent shall not be unreasonably withheld ;provided
further , that
in no event shall any indemnity
under this
Section 4.7 exceed the proceeds from the
offering received by such Holder;
provided further, that any payments will
be repaid to each such Holder if the Company acted recklessly .

 

c.                  Promptly after
receipt by an
indemnified party under
this Section 4.7
of notice of
the commencement of any
action (including any
governmental action), such indemnified
party will, if
a claim in
respect thereof is to be made against any indemnifying party under this
Section 4.7, deliver to the
indemnifying party a written notice of the
commencement thereof and the indemnifying
party shall have the right to participate
in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
the defense thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party shall have the right
to retain its own counsel, with the fees and expenses to be paid by the indemnifying
party, if in the reasonable opinion of counsel representation of such indemnified party
by the counsel retained by the indemnifying party would be inappropriate due
to actual or potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the commencement
of any such action, if (and only to the extent) materially
prejudicial to its ability to defend such action, shall relieve such indemnifying party
of any liability to the indemnified party under this Section 4.7,
but the omission so to deliver written notice
to the indemnifying party will not relieve it of any liability
that it may have to any indemnified party otherwise than under this
Section 4.7.

 

d.                  
If
the indemnification
provided for in
this Section 4.7
is held by
a court of competent jurisdiction
to be unavailable to an indemnified party with respect to any losses, claims, damages
or liabilities referred to herein, the indemnifying party, in
lieu of indemnifying such indemnified party thereunder,
shall to the extent permitted by applicable
law contribute to the amount paid or payable
by such indemnified party as a
result of such loss, claim, damage or liability in such proportion as is appropriate
to reflect the relative fault of the indemnifying party on the one hand and
of the indemnified party on the
other in connection with the Violation(s) that resulted in such loss, claim, damage
or liability, as well as any other relevant equitable considerations. The relative
fault of the indemnifying party
and of the indemnified party shall be determined by a court
of law by reference to, among other things,

 

    	28

    	 

    

whether the
untrue or alleged
untrue statement
of a material
fact or 
the  omission
 to  state
a material fact
relates to
information supplied by the indemnifying party
or by the indemnified party and the parties '
relative intent, knowledge, access
to information and opportunity
to correct or prevent
such statement or
omission; provided,
that in no event shall
any contribution by a Holder hereunder exceed
the proceeds from the offering
received  by such Holder

.

e.            The obligations of the Company and Holders under this Section 4.7  shall survive completion of any offering of Registrable Shares in a registration statement and the termination of this Agreement.
No indemnifying party, in the defense
of any such claim or
litigation, shall, except with the
consent of each indemnified party, consent
to entry of
any judgment or enter into any settlement which does
not include as an unconditional term
thereof the giving by the claimant or plaintiff to such indemnified
party of a release from
all liability in respect to such claim
or litigation.

 

4.8             
Assignment of
Registration Rights.
The rights to
cause the Company
to register Registrable
Shares pursuant to
this Article IV may be
transferred or assigned by a
Holder to a transferee or assignee
of Registrable
Shares which
(a) is a subsidiary,
parent, stockholder ,
general partner, limited partner, retired partner,
member, retired member or Affiliate of a Holder,
(b) is a Holder's
Immediate Family member or an
estate or trust of
or for the benefit of an individual Holder, or
(c) acquires at least
twenty percent (20%) of the Registrable Shares held by
such Holder; provided,
however, (i) the transferor
shall, within ten (10) days after such
transfer, furnish to the Company written notice of the
name and address of such
transferee or assignee and
the securities with respect to which such
registration rights are being assigned
and (ii) such
transferee shall become
a party to thfa Agreement.

 

4.9             
" Market
Stand-Off '
Agreement; Agreement
to Furnish Information.
Each Holder hereby
agrees that such
Holder shall,
if requested by the underwriter of any underwritten
public offering of the Company's Common Stock, agree
with such underwriter not to sell, transfer ,
make any short sale
of,
grant any option for
the purchase of,
or enter into any
hedging or similar transaction with the same economic
effect as a sale of, any Common
Stock (or other
securities) of the Company held
by such Holder (other
than those
included in the registration) for a
period specified by
the representative of the underwriters of Common
Stock (or other securities) of the Company (the
"Restricted Period")
not to exceed ninety (90) days
following the effective date
of any registration statement of the
Company filed under the Securities Act in connection with
the Initial Offering ;provided
that such agreements shall not apply to
Registrable Shares included
in such registration statement or sales or similar transactions effected
pursuant to a
valid exemption from
the registration requirements of the Securities
Act. Each Holder
agrees to execute and deliver such other agreements
as may be reasonably requested
by the Company
or the underwriter which are
consistent with the foregoing or which are necessary
to give further effect
thereto. In addition, if requested by the Company
or the representative of the underwriters
of Common Stock (or other securities)
of the Company, each Holder shall provide
, within ten
(10) days of such request, such information concerning
such Holder as may be reasonably requested by
the Company or
such representative in connection with the completion
 of  any public offering of the Company's
securities pursuant to a registration
statement filed under the Securities Act. The obligations
described in this Section 4.9 shall not apply to a
registration relating solely to employee benefit plans
on Form S-1 or Form S-8 or similar forms that
may be promulgated in the future,
or a registration relating solely to
a Rule 145 transaction on Form S-4

 

    	29

    	 

    

or similar
forms that may
be promulgated in
the future. The
Company may impose
stop-transfer instructions with respect
to the shares of Common Stock (or other
securities) subject to the foregoing restriction until the
end of the Restricted Period.

 

4.10         
Information Regarding
the Company.  With
a view to
making available to
Smith the benefits
of certain rules
and regulations of the SEC which may permit
the sale of the Shares to the public without registration,
the Company agrees to:

 

a.                  
Following the date
upon which the
Company registers the Common
Stock with the
Commission under Section
12 of the Exchange
Act, the Company will file with the
SEC, in a timely manner, all reports and
other documents required of the Company under the Exchange Act; and

b.                  
So long as
Smith owns any
Shares, furnish to
Smith forthwith upon request:
(i) a written
statement by the
Company as to
its compliance with the reporting requirements of
the Exchange Act (at any time after it has become
subject to such reporting requirements);  (ii) a copy of the most 
recent  annual or quarterly report of the Company; and (iii) such other reports
and documents as Smith may reasonably
request in availing itself of any rule or regulation of the SEC allowing it to sell
the Notes without registration.

 

ARTICLE
V

GENERAL  PROVISIONS

 

5.1              
Indemnification. Smith
agrees to indemnify
and hold harmless
the Company, its officers,
managers, affiliates, counsel,
agents and each
other Person, if
any, who controls or is controlled by it, within the meaning of Section
15 of the Securities Act, against any and all loss, liability, claim, damage and expense whatsoever
(including, but not limited to, any and all expenses reasonably incurred in
investigating, preparing or defending against any litigation commenced or threatened or .any
claim whatsoever) arising out
of or based upon any false representation
or warranty or breach or failure by Smith to
comply with any covenant or agreement made by
Smith herein or in any other document furnished by Smith to any of the foregoing in
connection with this transaction.

 

5.2              
Amendment.ThisAgreementmaybeamended,modifiedor supplemented
at any time
by the parties
hereto only by
an instrument in
writing signed on
behalf of each of the parties hereto. No agreement made through the use of electronic
records or electronic signatures, as those terms
are used in the Electronic Signatures
in Global and National Commerce Act, 15 U.S.C.
Sec. 7001 et. seq., shall be enforceable or binding on either party hereto. Notwithstanding the previous sentence, facsimile signatures,
telecopied signatures, or copies
of signatures in PDF format sent by
e-mail, will constitute a sufficient
form of writing for purposes of this Section
5.2 and Section 5.3.

 

5.3              
Counterparts.This Agreement may
be executed in
one or more counterparts, each
of which shall
be deemed an
original, but all of which together shall constitute one
and the same instrument.

 

5.4              
Headings.The
headings in this
Agreement are for
convenience of reference only
and shall not
limit or otherwise
affect the meaning
hereof.

    	30

    	 

    

5.5             
GOVERNING
LAW. THIS AGREEMENT SHALL
BE GOVERNED BY
AND CONSTRUED IN
ACCORDANCE WITH THE
LAWS OF
THE STATE
OF NEW
YORK.

5.6             
Severabilitv. If
any one
or more
of the
provisions contained herein,
or the
application thereof
in any circumstance ,
is held
invalid, illegal or
unenforceable in
any respect for
any reason, the
validity ,
legality and enforceability
of any such
provision in
every other respect
and of the
remaining provisions hereof shall not
be in any way impaired.

 

5.7             
Entire Agreement;Waivers.This
 Agreement,together
with the
Settlement Agreement, is
intended by
the parties as
a final
expression
of their
agreement and
is intended
to be a complete and exclusive
statement of the agreement
and understanding of the
parties hereto in respect of the
subject matter contained herein. There are no restrictions,
promises, warranties
or undertakings, other than
those set forth herein and in the Conversion Agreement. This Agreement
and the Conversion Agreement
supersede all prior agreements
and understandings
between the parties with
respect to
such subject matter.
No waiver
of any of the provisions
of this Agreement shall
be deemed or shall
constitute a waiver of
any other provision hereof (whether or not similar), nor shall
such waiver constitute a continuing
waiver unless otherwise expressly provided.

 

5.8             
Further Assurances.
Each of
the parties shall
execute such documents
and perform such
further acts
(including, without limitation, obtaining any
consents, exemptions,
authorizations, or other actions by,
or giving any
notices to, or making any filings with, any Governmental
Authority or any other Person) as may be
reasonably required or
desirable to carry out or to
perform the provisions
of this Agreement.

 

5.9             
Notices. All notices
or other communications
given or made
hereunder shall be
in writing and
shall be
delivered or mailed
by registered or first
class mail, postage prepaid, or express
overnight courier service, to
the address set forth in the Conversion Agreement.

 

(Signature
Page Follows)

 

 

 

 

 

 

 

 

 

 

 

 

    	31

    	 

    

IN
WITNESS WHEREOF, the
Company and Smith
have executed this
Agreement as of, 2013.

 

 

 

			GEOSPATIAL
                                         HOLDINGS,  INC.
	 	 	
	 	 	 
	 	By:	 
	 	 	Thomas R. Oxenreiter, CFO
	 	 	 
	 	 	 
	 	 	 
	 	 	Mark
A. SmithGeospatial Corporation S-1 

EXHIBIT
10.8

 

EMPLOYMENT
AGREEMENT

 

 

THIS AGREEMENT (“Agreement”), by and between GEOSPATIAL CORPORATION
a Nevada Corporation (the “Company”), and Mark A. Smith (the “Executive”) is entered into as of
October 18th, 2013 (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 October
18, 2016; provided, however that the Period of Employment shall automatically be extended on a day-by-day and shall always be thirty-six
(36) 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 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 be elected as the Chairman of the Board
throughout the Period of Employment. 

3.2Scope.
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 (i) serve on corporate, civic or charitable boards or committees,
(ii) deliver lectures, fulfill speaking engagements or teach occasional courses or seminars at educational institutions, or (iii)
manage personal and/or family investments and engage in any other activities, so long as such activities do not interfere, in
any significant respect, with the Executive’s responsibilities hereunder or otherwise violate this Agreement.

 

    	1

    	 

    

 

4. Salary.

 

4.1During 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 on 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.

4.2Annual
Bonuses. 

4.2.1Beginning with the Company’s
fiscal year commencing on January 1st, 2013 (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 (the “Target
Bonus Amount”) in the Company’s annual incentive compensation plan (the “2013 Annual Bonus Plan) shall be at
100% of Executive’s Base Salary. The performance measures applicable to the Executive’s bonus opportunity for 2013
shall be deemed to be met and the performance measures for each successive fiscal year of the Company during the Period of Employment
shall be set by reasonable good faith agreement of the Board and the Executive.

4.2.2As 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 4.2.3 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.

4.2.3Other 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. In all cases the
Executive’s total annual compensation plan shall be equal or greater than other Company executives.

    	2

    	 

    

4.2.4Payment 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
obligations pursuant to this Section 4.2.4 shall not exceed $25,000 incurred by the Executive.

5.Other Executive Benefits.

5.1Business 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.

5.2Benefit 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 a 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.

5.3Holidays and Vacations. 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.

5.4Company 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.

5.5Facilities 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 has 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.

5.6Tax and Financial Planning Services.  During
the Period of Employment, the Company shall pay (or reimburse the Executive) for the cost of

    	3

    	 

    

personal tax and financial planning services and related
expenses in an amount up to fifteen thousand dollars per year.

5.7Executive Health Benefit.During the
Period of Employment, the Company shall pay (or reimburse the Executive) for the cost of an annual Executive Physical at a medical
facility chosen by the Executive in an amount up to ten thousand dollars per year.

6.Termination.

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

6.2Disability. 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 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.

6.3By 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

    	4

    	 

    

that the Executive’s action or omission was in the
best interest of the Company. Any act or failure to act, 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)
thirty days written notice. For purposes of this Agreement, “Good Reason” means, with 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 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 the Executive to be named or elected as the Chairman of 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 his position), c) any relocation of the Executive’s office as assigned to him by the
Company to a location more than twenty (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.

6.5Other 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.

6.6Notice 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

    	5

    	 

    

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 it rights hereunder.

6.7Date 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.

7.1Termination 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.

7.3Disability. 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.

7.4Retirement. 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 sixty
(60) years old, he shall be treated as a retiree for purposes of all compensation and benefit plans, policies, arrangements and
practices of the Company then in effect. He shall, in addition to receiving payment of the Accrued Obligations, at a minimum, until
the death of the Executive, be paid monthly (a) 1/24th 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) 1/24th 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; payable for the remaining life of the Executive; and 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.

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7.5Resignation with Good Reason, Death 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), if the Period of Employment is terminated by death, or if the Executive terminates his employment for Good Reason,
the Executive shall receive, in addition to payment of the Accrued Obligations, the following:

7.5.1A lump sum cash payment in an amount
equal to two (2) times 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;

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

7.5.3Continued exercisability, for a period
equal to their full original terms, for all vested options, whether previously vested or vesting under subsection 7.5.2;

7.5.4For 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 has 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).

7.6Release. 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.

7.8No Right to 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 of Control. For purposes of this Agreement,
a “Change of Control” shall be deemed to have occurred if:

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8.1Change in Ownership. Any “person”
(as defined in Section 13(d) and 14(d) of the Securities Exchange Act of 1943, 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 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 of ownership percentage resulting from an acquisition
of securities by the Company; or

8.2Change 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 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

8.3Business 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 all
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

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

9. Taxes. In the event that the aggregate of all
payment 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

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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 of 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 it selection, acted in any way of 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 policy 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 11 shall continue so long as he may be subject to such liability, whether
or not this Agreement may have terminated prior thereto.

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12.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.

13.Arbitration. Any dispute or controversy between
the Company and the Executive arising out of or relating to this 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 and 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
proceedings 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.

14.Disputes; Payment of Attorney’s 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 consent from
the Executive while any claim or dispute described in the first sentence of this Section 14 is pending, the Company shall promptly

    	10

    	 

    

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 Executives 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.

15. Successors.

15.1 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.

15.2This Agreement shall inure to the benefit
of and be binding upon the Company and its successors and assigns.

15.3As 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.

16.Representations.

16.1 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 an 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 principals of equity (regardless of whether enforceability
is considered in proceeding in equity or at law).

16.2The 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 ay 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

    	11

    	 

    

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 principals of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

17.Miscellaneous.

17.1 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.

17.2 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:
	 	 
	 	Mark A. Smith
	 	1001 Carlisle Street
	 	Natrona Heights,
PA 15065
	 	Telephone: 724-226-2067 or 724-994-8055
	 	 
	 	If to the Company:
	 	 
	 	Geospatial Corporation
	 	229 Howes Run Road
	 	Sarver, PA 16055
	 	Attention: General Counsel 
	 	 
	 	Fax: 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.

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

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

17.5 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.

17.6This 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. 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.

17.7This 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 on and the same instrument.

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

	 	 	Geospatial
                              Corporation
	 	 	 
	 	 	 
		By:	/s/ Thomas R. Oxenreiter
		 	Thomas R. Oxenreiter, Director  
	 	 	 
	 	 	 
	 	 	/s/ Mark
A. Smith
	 	 	Mark A. Smith,
                              an Individual

 

 

 

13

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