Document:

Exhibit 10.1

 

FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this “Amendment”), dated as of March 9, 2015, is made by and among MAXIMUS, INC., a Virginia corporation (the “Borrower”), the several banks and other financial institutions and lenders party hereto (the “Lenders”), and SUNTRUST BANK, in its capacity as administrative agent (the “Administrative Agent”) for the Lenders (as defined in the Credit Agreement), as issuing bank (the “Issuing Bank”) and as Swingline Lender (the “Swingline Lender”), and MAXIMUS FEDERAL SERVICES, INC., a Virginia corporation (“MAXIMUS Federal”), MAXIMUS HUMAN SERVICES, INC., a Virginia corporation (“MAXIMUS Human”), MAXIMUS HEALTH SERVICES, INC., an Indiana corporation (“MAXIMUS Health”), PSI SERVICES HOLDING INC., a Delaware corporation (“PSI Holding”) and POLICY STUDIES INC., a Colorado corporation (“PSI,” and together with MAXIMUS Federal, MAXIMUS Human, MAXIMUS Health and PSI Holding, collectively, the “Subsidiary Loan Parties,” and individually, a “Subsidiary Loan Party,” and together with the Borrower, collectively, the “Loan Parties,” and individually, a “Loan Party”).

 

RECITALS

 

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to the Amended and Restated Revolving Credit Agreement, dated as of March 15, 2013, by and among the Borrower, the Lenders and the Administrative Agent, as amended by the Supplement and Joinder Agreement, of even date herewith (the “Supplement and Joinder”), by and among the Borrower, the other Loan Parties, the Lenders party thereto and the Administrative Agent (as further amended, supplemented, amended and restated or otherwise modified through the date hereof, the “Credit Agreement”).  Capitalized terms defined in the Credit Agreement and undefined herein shall have the same defined meanings when such terms are used in this Amendment;

 

WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders amend certain provisions of the Credit Agreement as set forth below; and

 

WHEREAS, the Administrative Agent and the Lenders have agreed to do so, subject to the terms and conditions of this Amendment;

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows:

 

AGREEMENT

 

1.                                      Incorporation of Recitals.  The Recitals hereto are incorporated herein by reference to the same extent and with the same force and effect as if fully set forth herein.

 

2.                                      Amendments to Credit Agreement.  The Credit Agreement is hereby amended as follows:

 

 

(a)                                 The reference in the second recital to the Credit Agreement to “$100,000,000” is amended to be a reference to $400,000,000.

 

(b)                                 Schedule II to the Credit Agreement is amended to read in its entirety as set forth in Appendix A attached hereto and made a part hereof.

 

(c)                                  Section 1.1 of the Credit Agreement is amended to add the following definitions, to appear in their appropriate alphabetical order:

 

“AUD Screen Rate” means, with respect to any Interest Period, the average bid reference rate as administered by the Australian Financial Markets Association (or any other Person that takes over the administration of that rate) for Aus $ bills of exchange with a tenor equal to such Interest Period, displayed on page BBSY of the Reuters screen (or, in the event such rate does not appear on such Reuters page, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion) as of the Specified Time on the Quotation Day for such Interest Period.

 

“CDOR Screen Rate” means, with respect to any Interest Period, the average rate for bankers acceptances as administered by the Investment Industry Regulatory Organization of Canada (or any other Person that takes over the administration of that rate) with a tenor equal to such Interest Period, displayed on CDOR page of the Reuters screen (or, in the event such rate does not appear on such Reuters page, on any successor or substitute page on such screen or service that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion) as of the Specified Time on the Quotation Day for such Interest Period.

 

“First Amendment” shall mean the First Amendment to Amended and Restated Revolving Credit Agreement, dated as of March 9, 2015, by and among the Borrower, the other Loan Parties, the Lenders party thereto and the Administrative Agent.

 

“First Amendment Effective Date” shall mean the First Amendment Effective Date (as such term is defined in the First Amendment).

 

“HKD Screen Rate” with respect to any Interest Period for any loan in Hong Kong Dollars, the percentage rate per annum for deposits in Hong Kong Dollars for a period beginning on the first 

 

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day of the interest period and ending on the last day of such Interest Period, displayed under the heading “HKAB HKD” Interest Settlement Rates” on the Reuters Screen HKABHIBOR Page or, in the event that the rate does not appear on such Reuters page, on any successor or substitute page on such screen that displays such rate, or on the appropriate page on such other information service that publishes such rate as selected by the Administrative Agent from time to time in its reasonable discretion.

 

“Intercreditor Agreement” shall have the meaning as set forth in Section 7.1(n).

 

“Interpolated Rate” means, at any time, for any currency and for any Interest Period, the rate per annum determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between (a) the CDOR Screen Rate, AUD Screen Rate, NZD Screen Rate or HIBOR Screen Rate, as applicable, for the longest period (for which a CDOR Screen Rate, AUD Screen Rate, NZD Screen Rate or HIBOR Screen Rate is available for such currency) that is shorter than such Interest Period; and (b) the CDOR Screen Rate, AUD Screen Rate, NZD Screen Rate or HIBOR Screen Rate, as applicable, for the shortest period (for which a CDOR Screen Rate, AUD Screen Rate, NZD Screen Rate or HIBOR Screen Rate is available for such currency) that exceeds such Interest Period, in each case, at such time; provided, that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“NZD Screen Rate” means, with respect to any Interest Period, the average bank bill reference rate for bills of exchange as administered by the New Zealand Financial Markets Association (or any other Person that takes over the administration of that rate) for bills of exchange with a tenor equal to the relevant Interest Period displayed on page BKBM of the Reuters screen (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of other information service that publishes such rate form time to time as selected by the Administrative Agent in its reasonable discretion) at or about 10.45a.m. (Wellington, New Zealand time) on the Quotation Day for such Interest Period.

 

“Quotation Day” means, in relation to any period for which an interest rate is to be determined:

 

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(a)                                 (if the currency is Aus $, Can $, NZ $ or HK $) the first day of that period;

 

(b)                                 (for any other currency) two Business Days before the first day of that period,

 

unless market practice differs in the relevant market by reference to which the Reference Bank Rate for a currency is determined, in which case the Quotation Day for that currency will be determined by the Administrative Agent in accordance with market practice in that market (and if quotations would normally be given on more than one day, the Quotation Day will be the last of those days).

 

“Reference Bank” means (i) in connection with any determination of the London Interbank Offered Rate, the principal London offices, (ii) in connection with any determination of the CDOR Rate, the principal Toronto offices, (iii) in connection with any determination of the HIBOR Rate, the principal Hong Kong offices and (iv) in connection with any determination of the Australian BBSY Rate, the principal Sidney offices, (v) in connection with the New Zealand BKBM Rate, the principal Wellington offices, each case, of SunTrust Bank and one or more Lenders (subject to their approval) selected by the Administrative Agent from time to time.

 

“Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places)  supplied to the Administrative Agent at its request by the Reference Banks (as the case may be) as of the Specified Time on the Quotation Day for Loans in the applicable currency and the applicable Interest Period:

 

(a)                                 in relation to Loans in Aus $, as the bid rate observed by the relevant Reference Bank for Aus $ denominated bank accepted bills and negotiable certificates of deposit issued by banks which are for the time being designated “Prime Banks” by the Australian Financial Markets Association that have a remaining maturity equal to the relevant Interest Period;

 

(b)                                 in relation to Loans in Can $, as the rate at which the relevant Reference Bank is willing to extend credit by the purchase of bankers acceptances which have been accepted by banks which are for the time being customarily regarded as being of appropriate credit standing for such purpose with a term to maturity equal to the relevant period;

 

(c)                                  in relation to Loans in any currency other than Aus $, Can $, NZ $ and HK $, as the rate at which the relevant Reference 

 

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Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period, were it to do so by asking for and then accepting interbank offers in reasonable market size in that currency and for that period; and

 

(d)                                 in relation to Loans in NZD, as the rate at which the relevant Reference Bank is willing to purchase bills of exchange which have been accepted by banks which are for the time being customarily regarded as being of appropriate credit standing for such purpose with a term to maturity equal to the relevant period.

 

“Sanctions” means any international economic sanction administered or enforced by the United States Government (including without limitation, OFAC), the European Union, Her Majesty’s Treasury, The United Nations, or other relevant sanctions authority.

 

“Specified Time” means a time determined in accordance with the following schedule.

 

	
BBSY   is fixed
    	
 
    	
Quotation   Day as of 11:00 a.m.
    
	
 
    	
 
    	
(Sydney   time)
    
	
 
    	
 
    	
 
    
	
CDOR   is fixed
    	
 
    	
Quotation   Day as of 11:00 a.m.
    
	
 
    	
 
    	
(Toronto   time)
    
	
 
    	
 
    	
 
    
	
BKBM   is fixed
    	
 
    	
Quotation   Day as of 11:00 a.m.
    
	
 
    	
 
    	
(Wellington   time)
    
	
 
    	
 
    	
 
    
	
HKABHIBOR   is fixed
    	
 
    	
Quotation   Day as of 11:00
    
	
 
    	
 
    	
a.m.   (Hong Kong time)
    

 

(d)                                 The definition of “Aggregate Revolving Commitment Amount” set forth in Section 1.1 of the Credit Agreement is amended to add the following as the final sentence thereof:

 

On the First Amendment Effective Date, the Aggregate Revolving Commitment Amount equals $400,000,000.

 

(e)                                  The definition of “Base Rate” set forth in Section 1.1 of the Credit Agreement is amended to add the following as the final sentence thereof:

 

If at any time the Base Rate is less than zero, the Base Rate shall be deemed to be zero for purposes of this Agreement.

 

(f)                                   The definition of “Borrowed Money Triggering Event” set forth in Section 1.1 of the Credit Agreement, and usages thereof in the Credit Agreement and the other Loan Documents, are hereby deemed deleted.

 

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(g)                                  The definition of “Federal Funds Rate” set forth in Section 1.1 of the Credit Agreement is amended to add the following as the final sentence thereof:

 

If at any time the Federal Funds Rate is less than zero, the Federal Funds Rate shall be deemed to be zero for purposes of this Agreement.

 

(h)                                 The definition of “Fee Letter” set forth in Section 1.1 of the Credit Agreement and the usages of such term in the Credit Agreement are amended to include a reference to that certain fee letter, dated as of December 19, 2014, executed by SunTrust Robinson Humphrey, Inc. and SunTrust Bank and accepted by the Borrower on December 22, 2014.

 

(i)                                     Clause (iii) of the definition of “Indebtedness” set forth in Section 1.1 of the Credit Agreement is amended to add the following parenthetical immediately succeeding the phrase “or services”:

 

(to include, for avoidance of doubt, obligations in respect of the deferred purchase price of the accounts receivable permitted to be sold pursuant to Section 7.6(h))

 

(j)                                    Clause (i) of the definition of “Index Rate” set forth in Section 1.1 of the Credit Agreement is amended to read in its entirety as follows:

 

(i)                                     the rate per annum equal to the offered rate for deposits in U.S. dollars for a one (1) month period, which rate appears on that page of Reuters reporting service, or such similar service as determined by the Administrative Agent, that displays ICE Benchmark Administration (“ICE”) (or any successor thereto if ICE is no longer making a London Interbank Offered Rate available) interest settlement rates for deposits in U.S. Dollars, as of 11:00 A.M. (London, England time) two (2) Business Days prior to the Index Rate Determination Date; provided, that if no such offered rate appears on such page, the rate used for such period will be the per annum rate of interest determined by the Administrative Agent to be the rate at which U.S. dollar deposits for such period, are offered to the Administrative Agent in the London Inter-Bank Market as of 11:00 A.M. (London, England time), on the day that is two (2) Business Days prior to the Index Rate Determination Date, divided by

 

(k)                                 The definition of “Index Rate” set forth in Section 1.1 of the Credit Agreement is amended to add the following as the final sentence thereof:

 

If at any time the Index Rate is less than zero, the Index Rate shall be deemed to be zero for purposes of this Agreement.

 

(l)                                     The definition of “LIBOR” set forth in Section 1.1 of the Credit Agreement is amended to read in its entirety as follows:

 

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“LIBOR” shall mean, for any Interest Period with respect to a Eurocurrency Loan, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on that page of Reuters reporting service, or such similar service as determined by the Administrative Agent, that displays ICE (or any successor thereto if ICE is no longer making a London Interbank Offered Rate available) interest settlement rates for deposits in U.S. Dollars as the London interbank offered rate for deposits in Dollars at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period for a term comparable to such Interest Period. If for any reason such rate is not available, LIBOR shall be, for any Interest Period, the rate per annum reasonably determined by the Administrative Agent as the rate of interest at which Dollar deposits in the approximate amount of the Eurocurrency Loan comprising part of such borrowing would be offered by the Administrative Agent to major banks in the London interbank Eurocurrency market at their request at or about 10:00 a.m. (New York, New York time) two Business Days prior to the first day of such Interest Period for a term comparable to such Interest Period.  If at any time LIBOR is less than zero, LIBOR shall be deemed to be zero for purposes of this Agreement.  If LIBOR shall not be available at such time for such Interest Period with respect to the applicable currency then LIBOR shall be the Interpolated Rate or the applicable Reference Bank Rate in either case at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period.

 

(m)                             The definition of the term “Loan Documents” contained in Section 1.1 of the Credit Agreement and usages thereof in the Credit Agreement and the other Loan Documents shall be deemed to include a reference to the Intercreditor Agreement.

 

(n)                                 The definition of “Required Lenders” contained in Section 1.1 of the Credit Agreement is amended to read as follows:

 

“Required Lenders” shall mean, at any time, Lenders holding more than 50% of the aggregate outstanding Revolving Commitments at such time or if the Lenders have no Revolving Commitments outstanding, then Lenders holding more than 50% of the Revolving Credit Exposure.

 

(o)                                 The definition of “Revolving Commitment Termination Date” contained in Section 1.1 of the Credit Agreement is amended to read as follows:

 

“Revolving Commitment Termination Date” shall mean the earliest of (i) March 9, 2020, (ii) the date on which the Revolving Commitments are terminated pursuant to Section 2.9 and (iii) the date on which all amounts outstanding under this Agreement have 

 

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been declared or have automatically become due and payable (whether by acceleration or otherwise).

 

(p)                                 The definition of “Swingline Commitment” contained in Section 1.1 of the Credit Agreement is amended to add the following at the end thereof:

 

(which is a portion of the Aggregate Revolving Commitment Amount)

 

(q)                                 Section 1.3 of the Credit Agreement is amended to add the following at the end thereof:

 

Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.

 

(r)                                    The first sentence of Section 2.7(a) of the Credit Agreement is amended to add the phrase “(or Dollar Equivalent, at the election of a Lender)” immediately following the phrase “Same Day Funds”.

 

(s)                                   Section 2.19(b) of the Credit Agreement is amended to add the phrase “or liquidity” immediately following each instance of the phrases “capital requirements” and “capital adequacy”.

 

(t)                                    Section 2.21(a) of the Credit Agreement is amended to add the phrases “or withhold”, “or withholding”, “or withholdings” and “or withheld” immediately following each instance of the terms “deduct”, “deduction”, “deductions” and “deducted”, as applicable.

 

(u)                                 The parenthetical in Section 2.21(c) of the Credit Agreement is amended to read in its entirety as follows:

 

(including, without limitation, Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.21 and any additional amounts paid by the Administrative Agent to any Lender or any relevant Governmental Authority that should have been paid or withheld and paid by the Borrower under Section 2.21(a) above)

 

(v)                                 Section 2.21(i) of the Credit Agreement is amended to add the following as the final sentence thereof:

 

For purposes of determining withholding Taxes imposed under FATCA, from and after the First Amendment Effective Date, the Borrower and the Administrative Agent shall treat (and the 

 

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Lenders hereby authorize the Administrative Agent to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

(w)                               The third sentence of Section 2.23(e) of the Credit Agreement is amended to add the following parenthetical following the phrase “in Same Day Funds”:

 

(to be made in Dollars)

 

(x)                                 The reference in Section 2.24(a) of the Credit Agreement to “$150,000,000” is amended to be a reference to $600,000,000.

 

(y)                                 Section 4.17 of the Credit Agreement is amended to add the following immediately following the phrase “No Loan Party”:

 

nor any Subsidiary nor any of its respective officers or employees, or to the knowledge of any Loan Party, any director, agent or Affiliate thereof

 

(z)                                  Each of clauses (i) and (ii) of Section 4.17 of the Credit Agreement are amended to add “or any Sanctions” at the end thereof.

 

(aa)                          Section 4.18 of the Credit Agreement is amended to delete the final sentence thereof.

 

(bb)                          Section 4.19 of the Credit Agreement is amended to read in its entirety as follows:

 

Section 4.19.  Anti-Corruption Laws; Sanctions.  The Borrower and its Subsidiaries have implemented and maintain in effect policies and procedures designed to ensure compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, other similar anti-corruption legislation and any Sanctions in other jurisdictions to the extent applicable to the Borrower or any Subsidiary.

 

(cc)                            Section 5.9 of the Credit Agreement is amended to add the following sentence at the end thereof:

 

The Borrower, its Subsidiaries and their respective officers and employees shall not use the proceeds of the Loans, and the Borrower and its Subsidiaries shall use commercially reasonable efforts to ensure that their respective directors and agents shall not use the proceeds of the Loans, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the 

 

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United States Foreign Corrupt Practices Act of 1977, as amended, or any Sanctions.

 

(dd)                          Section 5.13 of the Credit Agreement is hereby added to the Credit Agreement, to appear immediately succeeding Section 5.12, and to read in its entirety as follows:

 

Section 5.13.  Anti-Corruption Laws; Sanctions.  The Borrower and its Subsidiaries shall implement and maintain in effect policies and procedures designed to ensure compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, other similar anti-corruption legislation and any Sanctions in other jurisdictions to the extent applicable to the Borrower or any Subsidiary.

 

(ee)                            Section 6.1 of the Credit Agreement is amended to read in its entirety as follows:

 

Section 6.1.                                 Leverage Ratio.  The Borrower will maintain, as of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending March 31, 2013, a Leverage Ratio of not greater than 3.25:1; provided, however, the foregoing threshold shall be 3.75:1.00 for any fiscal quarter during which a Permitted Acquisition has been consummated (a “Trigger Quarter”), and for the next succeeding fiscal quarter; provided, further, however, that the threshold shall return to 3.25:1 no later than the second fiscal quarter after such Trigger Quarter.

 

(ff)                              Section 7.1(n) of the Credit Agreement is amended to read in its entirety as follows:

 

(n)                                 Indebtedness of the Borrower arising from the issuance by the Borrower of high-yield bonds or the incurrence of term loan Indebtedness, provided, that (i) no Default or Event of Default has occurred and is continuing at the time such Indebtedness is issued or incurred, nor would occur after giving effect thereto, (ii) after giving pro forma effect to the issuance or incurrence of any such Indebtedness, and assuming that such issuance or incurrence occurred as of the end of the immediately preceding Fiscal Quarter, the Borrower would be in compliance with the financial covenants set forth in Sections 6.1 and 6.2 and (iii) notwithstanding anything to the contrary contained in this Agreement, such incurrence shall be deemed to be a Leverage Ratio Triggering Event to the extent secured by Liens permitted pursuant to Section 7.2(h), and (x) the Borrower and its Subsidiaries will comply with the provisions of Section 5.12 prior to, or contemporaneously with, the issuance or incurrence of such Indebtedness, (y) the Liens in favor of the Administrative Agent shall be on a basis at least pari passu with Liens in favor of the

 

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holders of such Indebtedness, if any, and (z) if such Indebtedness is secured, it shall be subject to an intercreditor or subordination agreement by and among the Administrative Agent and the applicable agent, lender(s) or noteholder(s) of such Indebtedness, in each case, in form and substance reasonably satisfactory to the Administrative Agent (each such agreement, an “Intercreditor Agreement”).

 

(gg)                            Section 7.1(o) of the Credit Agreement is amended to read in its entirety as follows:

 

(o)                                 Indebtedness of the Borrower in respect of obligations for the deferred purchase price of the accounts receivable permitted to be sold pursuant to Section 7.6(h);

 

(hh)                          Section 7.2(h) of the Credit Agreement is amended to read in its entirety as follows:

 

(h)                                 Liens securing Indebtedness permitted pursuant to Section 7.1(n), subject to the terms and conditions thereof;

 

(ii)                                  Clauses (i) and (ii) of the proviso to Section 7.3(a) of the Credit Agreement are amended to read in their respective entireties as follows:

 

(i) the Borrower or any Subsidiary Loan Party may merge with a Person if the Borrower (or such Subsidiary Loan Party if the Borrower is not a party to such merger) is the surviving Person, (ii) any Subsidiary may merge into another Person; provided, that if any party to such merger is the Borrower or a Subsidiary Loan Party, the Borrower or such Subsidiary Loan Party shall be the surviving Person,

 

(jj)                                Section 7.5 of the Credit Agreement is amended to add the phrase “or any Indebtedness permitted to be incurred pursuant to Section 7.1(n) or any Guarantee thereof (which incurrence, to the extent secured by Liens permitted pursuant to Section 7.2(h)), shall be deemed to be a Leverage Ratio Triggering Event notwithstanding anything to the contrary contained in this Agreement)” immediately following the phrase “Indebtedness subordinated to the Obligations of the Borrower or any Guarantee thereof”, to replace the “and” following clause (ii) thereof with “,”, to delete the period at the end of clause (iii) thereof and to add the following as clause (iv) thereof:

 

and (iv) payments in respect of Indebtedness permitted to be incurred pursuant to Section 7.1(n) or any Guarantee thereof to the extent expressly permitted pursuant to the terms and conditions of the Intercreditor Agreement.

 

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(kk)                          Section 7.6 of the Credit Agreement is amended to delete the “and” following clause (g) thereof, to add the following as clause (h) thereof, and to amend, by re-lettering only, the existing clause (h) as clause (i):

 

(h)                                 dispositions by the Borrower or a Subsidiary of accounts receivables in connection with the factoring, collection or compromise thereof pursuant to customary accounts receivables purchase facilities and on terms and conditions reasonably acceptable to the Administrative Agent; provided, that the aggregate amount of all accounts receivable disposed shall not exceed $100,000,000 at any time prior to the occurrence of a Leverage Ratio Triggering Event, and $50,000,000 at any time as of and following the occurrence of a Leverage Ratio Triggering Event; and

 

(ll)                                  Subclause (D) of clause (i) of the proviso to Section 7.8 is amended to add the following at the end of such subclause:

 

(provided that any Indebtedness of a Subsidiary covered by this provision is not that of an owner, directly or indirectly, of any existing Subsidiary of the Borrower)

 

(mm)                  Section 7.13 of the Credit Agreement is hereby added to the Credit Agreement, to appear immediately succeeding Section 7.12, and to read in its entirety as follows:

 

Section 7.13.  Sanctions.  The Borrower, its Subsidiaries and their respective officers and employees shall not use the proceeds of the Loans, and the Borrower and its Subsidiaries shall use commercially reasonable efforts to ensure that their respective directors and agents shall not use the proceeds of the Loans, directly or indirectly, (i) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Person, or in any country or territory, that, at the time of such funding or financing, is, or whose government is, the subject of Sanctions or (ii) in any manner that would result in a violation of Sanctions applicable to any party hereto.

 

(nn)                          The last sentence of Section 10.2 is amended to read in its entirety as follows:

 

Notwithstanding anything contained herein to the contrary, this Agreement may be amended and restated without the consent of any Lender (but with the consent of the Borrower, the Administrative Agent and the remaining Lenders) if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitments of such Lender shall have terminated (but such Lender shall continue to be entitled to (a) the benefits of Sections

 

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2.19, 2.20, 2.21 and 10.3 and (b) to the extent such Lender is a Specified Hedge Provider or a Specified Treasury Management Provider, the benefits to which it is entitled as a Specified Hedge Provider or Specified Treasury Management Provider as otherwise provided in this Agreement), such Lender shall have no other commitment or other obligation hereunder and shall have been paid in full all principal, interest and other amounts owing to it or accrued for its account under this Agreement.

 

(oo)                          Section 10.4(b)(vi) of the Credit Agreement is amended to add the following at the end thereof:

 

(or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person)

 

(pp)                          The first sentence of Section 10.7(a) of the Credit Agreement is amended to add the phrase “or a Loan Party (other than as prohibited or restricted by the terms of the Subsidiary Guaranty)” immediately following each instance of the phrase “the Borrower”.

 

(qq)                          Except as specifically modified by this Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed by the parties hereto and remain in full force and effect.

 

(rr)                                Each of the Borrower, the other Loan Parties, the Administrative Agent and each Lender agrees that, as of and after the First Amendment Effective Date (as hereinafter defined), each reference in the Loan Documents to the Credit Agreement shall be deemed to be a reference to the Credit Agreement as amended hereby.

 

3.                                      Effectiveness of Amendment.  This Amendment and the amendments contained herein shall become effective on the date (the “First Amendment Effective Date”) when each of the conditions set forth below shall have been fulfilled to the satisfaction of the Administrative Agent:

 

(a)                                 The Administrative Agent shall have received counterparts of this Amendment, duly executed and delivered on behalf of the Borrower, the other Loan Parties, the Administrative Agent and the Lenders party hereto, the Supplement and Joinder, duly executed and delivered on behalf of the Borrower, the other Loan Parties, the Administrative Agent and the Lenders party thereto, as well as allonges to the Revolving Credit Notes or amended and restated Revolving Credit Notes, in each case, as required by the Supplement and Joinder (all of the foregoing, collectively, the “Modification Documents”).

 

(b)                                 Before and after giving effect to this Amendment, no event shall have occurred and be continuing that constitutes an Event of Default, or that would constitute an Event of Default but for the requirement that notice be given or that a period of time elapse, or both.

 

(c)                                  Before and after giving effect to this Amendment, all representations and warranties of the Borrower contained in the Credit Agreement, and all representations and warranties of each other Loan Party in each Loan Document to which it is a party, shall be true

 

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and correct at the First Amendment Effective Date as if made on and as of such First Amendment Effective Date, or, to the extent such representations or warranties are expressly stated to be made as of a particular date, such representations and warranties are true and correct as of such date.

 

(d)                                 The Borrower shall have delivered to the Administrative Agent (1) certified copies of evidence of all corporate and company actions taken by the Borrower and the other Loan Parties to authorize the execution and delivery of this Amendment and the other Modification Documents, (2) certified copies of any amendments to the articles or certificate of incorporation, formation or organization, bylaws, partnership certificate or operating agreement of the Borrower and each other Loan Party since the date of the Credit Agreement or, as applicable, the joinder of a Loan Party to the Loan Documents, (3) a certificate of incumbency for the officers or other authorized agents, members or partners of the Borrower and each other Loan Party executing this Amendment, the other Modification Documents and the other Loan Documents related hereto and (4) such additional supporting documents as the Administrative Agent or counsel for the Administrative Agent reasonably may request.

 

(e)                                  The Administrative Agent (or its counsel) shall have received a favorable written opinion of Winston & Strawn LLP, special counsel to the Loan Parties, and favorable written opinions of local counsel to the Loan Parties, in each case, addressed to the Administrative Agent and each of the Lenders, and covering such matters relating to the Loan Parties, this Amendment, the other Modification Documents and the other documents required hereby and the transactions contemplated herein and therein as the Administrative Agent shall reasonably request.

 

(f)                                   The Administrative Agent (or its counsel) shall have received the results of a search of the Uniform Commercial Code filings (or equivalent filings) made with respect to the Loan Parties in the states (or other jurisdictions) of formation of such Persons, and in which the chief executive office of each such Person is located and in the other jurisdictions reasonably requested by the Administrative Agent, together with copies of the financing statements (or similar documents) disclosed by such search, and accompanied by evidence satisfactory to the Administrative Agent that the Liens indicated in any such financing statement (or similar document) would be permitted by Section 7.2 of the Credit Agreement or have been or will be contemporaneously released or terminated.

 

(g)                                  No change shall have occurred which has had or could reasonably be expected to have a Material Adverse Effect.

 

(h)                                 All documents delivered pursuant to this Amendment and the other Modification Documents must be of form and substance satisfactory to the Administrative Agent and its counsel, and all legal matters incident to this Amendment and the other Modification Documents must be satisfactory to the Administrative Agent’s counsel.

 

(i)                                     Payment by the Borrower in immediately available funds of the fees agreed to in the Fee Letter and the fees and expenses required to be paid by Section 10 of this Amendment.

 

14

 

(j)                                    Satisfaction of the conditions precedent to effectiveness of the Supplement and Joinder, in accordance with the terms and conditions set forth therein.

 

4.                                      Amendment Only; No Novation; Modification of Loan Documents.  Each of the Borrower and each other Loan Party acknowledges and agrees that this Amendment and the other Modification Documents only amend the terms of the Credit Agreement and the other Loan Documents and does not constitute a novation, and each of the Borrower and each other Loan Party ratifies and confirms the terms and provisions of, and its obligations under, the Credit Agreement and the other Loan Documents in all respects.  Each of the Borrower and each other Loan Party acknowledges and agrees that each reference in the Loan Documents to any particular Loan Document shall be deemed to be a reference to such Loan Document as amended by this Amendment and the other Modification Documents.  To the extent of a conflict between the terms of any Loan Document and the terms of this Amendment, the terms of this Amendment shall control.

 

5.                                      No Implied Waivers.  Each of the Borrower and each other Loan Party acknowledges and agrees that the amendments contained herein and the other Modification Documents shall not constitute a waiver, express or implied, of any Default, Event of Default, covenant, term or provision of the Credit Agreement or any of the other Loan Documents, nor shall they create any obligation, express or implied, on the part of the Administrative Agent or any other Lender to waive, or to consent to any amendment of, any existing or future Default, Event of Default or violation of any covenant, term or provision of the Credit Agreement or any of the other Loan Documents.  The Administrative Agent and the Lenders shall be entitled to require strict compliance by the Borrower and the other Loan Parties with the Credit Agreement and each of the other Loan Documents, and nothing herein shall be deemed to establish a course of action or a course of dealing with respect to requests by the Borrower or any other Loan Party for waivers or amendments of any Default, Event of Default, covenant, term or provision of the Credit Agreement or any of the other Loan Documents.

 

6.                                      Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the Borrower, the other Loan Parties, the Lenders and the Administrative Agent and their respective successors and assigns.

 

7.                                      No Further Amendments.  Nothing in this Amendment, the other Modification Documents or any prior amendment to the Loan Documents shall require the Administrative Agent or any Lender to grant any further amendments to the terms of the Loan Documents.  Each of the Borrower and each other Loan Party acknowledges and agrees that there are no defenses, counterclaims or setoffs against any of their respective obligations under the Loan Documents.

 

8.                                      Representations and Warranties.  All representations and warranties made by the Borrower and each other Loan Party in the Loan Documents are incorporated by reference in this Amendment and are deemed to have been repeated as of the date of this Amendment and the other Modification Documents with the same force and effect as if set forth in this Amendment, except that any representation or warranty relating to any financial statements shall be deemed to be applicable to the financial statements most recently delivered to the Administrative Agent in accordance with the provisions of the Loan Documents, and, to the extent such representations or warranties are expressly stated to be made as of a particular date, such representations and

 

15

 

warranties are true and correct as of such date.  Each of the Borrower and each other Loan Party represents and warrants to the Administrative Agent, the Lenders and the Issuing Bank that, after giving effect to the terms of this Amendment and the other Modification Documents, no Default has occurred and been continuing.

 

9.                                      Intentionally Deleted.

 

10.                               Fees and Expenses.  The Borrower agrees to pay all reasonable, out-of-pocket costs and expenses of the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent and its Affiliates, in connection with the preparation and administration of this Amendment and the other Modification Documents.

 

11.                               Severability.  Any provision of this Amendment held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof; and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

12.                               Governing Law.  This Amendment shall be construed in accordance with and be governed by the law (without giving effect to the conflict of law principles thereof) of the State of New York.  THIS AMENDMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSES SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

13.                               Counterparts.  This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts (including by telecopy or by email, in pdf format), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  It shall not be necessary that the signature of, or on behalf of, each party, or that the signatures of the persons required to bind any party, appear on more than one counterpart.

 

14.                               Arrangers and Documentation Agents.  Each of SunTrust Robinson Humphrey, Inc., and Bank of America, N.A., shall have the title “Joint Lead Arranger,” subject to the provisions of Section 9.10 of the Credit Agreement, and references in the Credit Agreement to “Arranger” shall be deemed to refer to each of such Persons.  Each of HSBC Bank USA, N.A., and TD Bank, N.A., shall have the title “Documentation Agent,” subject to the provisions of Section 9.10 of the Credit Agreement.

 

[SIGNATURES ON FOLLOWING PAGES]

 

16

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Amended and Restated Revolving Credit Agreement to be duly executed by their respective duly authorized representatives all as of the day and year first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
MAXIMUS, INC., a Virginia corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard J. Nadeau
    
	
 
    	
Name:
    	
Richard J. Nadeau
    
	
 
    	
Title: 
    	
Chief Financial Officer & Treasurer
    
	
 
    	
 
    
	
 
    	
SUBSIDIARY LOAN PARTIES:
    
	
 
    	
 
    
	
 
    	
MAXIMUS   FEDERAL SERVICES, INC., a Virginia corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas D. Romeo
    
	
 
    	
Name:
    	
Thomas D. Romeo
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
MAXIMUS HUMAN SERVICES, INC., a Virginia   corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David R. Francis
    
	
 
    	
Name:
    	
David R. Francis
    
	
 
    	
Title:
    	
Secretary
    
	
 
    	
 
    
	
 
    	
MAXIMUS HEALTH SERVICES, INC., an Indiana   corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David R. Francis
    
	
 
    	
Name:
    	
David R. Francis
    
	
 
    	
Title:
    	
Secretary
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

17

 

	
 
    	
PSI SERVICES HOLDING INC., a Delaware   corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ilene Baylinson
    
	
 
    	
Name:
    	
Ilene Baylinson
    
	
 
    	
Title:
    	
Vice President & Secretary
    
	
 
    	
 
    
	
 
    	
POLICY STUDIES INC., a Colorado   corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David R. Francis
    
	
 
    	
Name:
    	
David R. Francis
    
	
 
    	
Title:
    	
Secretary
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

18

 

	
 
    	
ADMINISTRATIVE   AGENT:
    
	
 
    	
 
    
	
 
    	
SUNTRUST   BANK
    
	
 
    	
as Administrative Agent, as Issuing Bank and as
   Swingline Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas F. Parrott
    
	
 
    	
Name:
    	
Thomas   F. Parrott
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
LENDERS:
    
	
 
    	
 
    
	
 
    	
SUNTRUST   BANK
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas F. Parrott
    
	
 
    	
Name:
    	
Thomas   F. Parrott
    
	
 
    	
Title:
    	
Director
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

 

	
 
    	
BANK   OF AMERICA, N.A.
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Craig Bogle
    
	
 
    	
Name:
    	
Craig   Bogle
    
	
 
    	
Title:
    	
Vice   President
    

 

 [SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

 

	
 
    	
HSBC   BANK USA, N.A.
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Reed R. Menefee
    
	
 
    	
Name:
    	
Reed   R. Menefee
    
	
 
    	
Title:
    	
Senior   Vice President, Corporate Banking
    

 

 [SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

 

	
 
    	
TD   BANK, N.A.
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Shivani Agarwal
    
	
 
    	
Name:
    	
Shivani   Agarwal
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

 

	
 
    	
BRANCH   BANKING AND TRUST COMPANY
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John K. Perez
    
	
 
    	
Name:
    	
John   K. Perez
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

 [SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

	
 
    	
FIFTH   THIRD BANK
    
	
 
    	
as Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Tamara Dowd
    
	
 
    	
Name:
    	
Tamara   Dowd
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A.,
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Anthony Galea
    
	
 
    	
 
    	
Name:
    	
Anthony   Galea
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Irey
    
	
 
    	
Name:
    	
Mark   Irey
    
	
 
    	
Title:
    	
Vice   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott Santa Cruz
    
	
 
    	
Name:
    	
Scott   Santa Cruz
    
	
 
    	
Title:
    	
Managing   Director
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

	
 
    	
CITIZENS   BANK OF PENNSYLVANIA
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Tracy van Riper
    
	
 
    	
Name:
    	
Tracy   van Riper
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

 

APPENDIX A

 

Schedule II

 

REVOLVING COMMITMENT AMOUNTS

 

	
Lender
    	
 
    	
Revolving Commitment
   Amount
    	
 
    
	
SunTrust Bank
    	
 
    	
$
    	
70,000,000
    	
 
    
	
Bank of America, N.A.
    	
 
    	
$
    	
60,000,000
    	
 
    
	
HSBC Bank USA, N.A.
    	
 
    	
$
    	
50,000,000
    	
 
    
	
TD Bank, N.A.
    	
 
    	
$
    	
50,000,000
    	
 
    
	
Branch Banking and Trust Company
    	
 
    	
$
    	
30,000,000
    	
 
    
	
Fifth Third Bank
    	
 
    	
$
    	
30,000,000
    	
 
    
	
JPMorgan Chase Bank, N.A.
    	
 
    	
$
    	
30,000,000
    	
 
    
	
U.S. Bank National Association
    	
 
    	
$
    	
30,000,000
    	
 
    
	
Wells Fargo Bank, National Association
    	
 
    	
$
    	
30,000,000
    	
 
    
	
Citizens Bank of Pennsylvania
    	
 
    	
$
    	
20,000,000
    	
 
    
	
Totals
    	
 
    	
$
    	
400,000,000GEOSPATIAL CORPORATION S-1/A 

Exhibit 10.23

 

NOTE
AND WARRANT PURCHASE AGREEMENT

 

THIS NOTE AND WARRANT
PURCHASE AGREEMENT (“Agreement”) is dated as of January 16, 2015, by and between Geospatial Corporation, a Nevada
corporation (the “Company”), and Horberg Enterprises LP (“Purchaser”).

RECITALS:

 

WHEREAS, on the
terms and conditions set forth herein, the Company desires to issue and sell to the Purchaser a Senior Secured Promissory Note
in the original principal amount of $500,000 in the form attached hereto as Exhibit A (the “Note”) and
a Warrant to purchase 1,500,000 shares of the Company’s common stock, par value $.001 per share (“Common Stock”)
in the form attached hereto as Exhibit B (the “Warrant”); and

WHEREAS, on the
terms and subject to the conditions set forth herein, the Purchaser is willing to purchase from the Company the Note and Warrant;
and

WHEREAS, the Company
desires to sell, and Purchaser desires to purchase, the Note and Warrant on the terms and conditions set forth herein.

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

 

1.

Sale and Purchase.
Subject to the terms and conditions hereof, the Company hereby issues and sells to Purchaser, and Purchaser hereby purchases from
the Company, the Note in the original principal amount of $500,000.00 and the Warrant entitling Purchaser to purchase up to 1,500,000
shares of the Company’s Common Stock at a purchase price of $0.25 per share of Common Stock.

(a)

Terms of the Note. The terms and
conditions of the Note are set forth in the form of Note attached hereto as Exhibit A. As set forth in the Note, the Note may be
converted into shares of Company Common Stock (“Conversion Shares”) in the event it is not repaid by its maturity
date.

(b)

Security. The Note shall be secured
by all of the assets of the Company and all of the assets of all of the Company’s subsidiaries on the terms and conditions
set forth in the form of security agreement (the “Security Agreement”) attached hereto as Exhibit C.

(c)

Guaranty. The obligations of the
Company under the Note shall be guaranteed, jointly and severally, by all of the Company’s subsidiaries on the terms and
conditions set forth in the form of unlimited guaranty (the “Guaranty”) attached hereto as Exhibit D.

 

    	 

    	 

    

 

(d)

Warrant. The terms and conditions
of the Warrant are set forth in the form of Warrant attached hereto as Exhibit B.  The Company and the Purchasers
agree, as between the Company and Purchaser, that the fair market value of the right to buy one share of Common Stock under the
terms set forth in the Warrant is equal to $0.0001.  The Company and the Purchaser, having adverse interests and as a result
of arm’s length bargaining, agree that (i) neither the Purchaser nor any of its affiliates or associates have rendered or
agreed to render any services to the Company in connection with this Agreement or the issuance of the Warrant and (ii) the Warrant
is not being issued to the Purchaser as compensation for services.

(e)

Payment of Purchase Price. Upon
receipt of the executed Note, Warrant, Security Agreement, and Guaranty, the Purchaser shall pay to the Company the purchase price
for the Note and Warrant in the amount of $500,000, by wire transfer of immediately available funds to an account designated in
writing by the Company, and the Company hereby delivers the executed Note and Warrant to Purchaser.

2.

Registration Rights.
The Company shall include in its Registration Statement on Form S-1 filed with the Securities and Exchange Commission (the “Commission”),
File No. 333-194824 (the “Registration Statement”) and any amendment thereto covering the resale of shares of
its common stock held by certain of its shareholders, 3,333,333 shares of its common stock issuable upon conversion of the Note
(the “Conversion Shares”) and 1,500,000 shares of its common stock issuable upon exercise of the Warrant (the
“Warrant Shares” and, collectively with the Conversion Shares, the “Registered Shares”).
The Company shall use commercially reasonable efforts to cause such Registration Statement to be declared effective under the Securities
Act as soon as possible, and shall use commercially reasonable efforts to keep the Registration Statement continuously effective
until such time that all Registered Shares may be resold pursuant to Rule 144 under the Securities Act of 1933, as amended (the
“Act”), without volume limitations. Notwithstanding anything to the contrary contained in this Section 2,
in the event the Commission informs the Company that all of the Registered Shares cannot, as a result of the application of Rule
415 under the Act, be registered for resale as a secondary offering on a single Registration Statement, the Company agrees to promptly
inform Purchaser and (i) use its commercially reasonable efforts to file amendments to the Registration Statement as required by
the Commission to register all of the Registered Shares; provided however, that in the event that any shares registered for resale
in the Registration Statement are cut back, the Registered Shares shall not be cut back until all shares held by Company management
and employees have been cut back, as well as all shares held by shareholders who did not pay cash for their shares.

3.

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

(a)

Organization
and Standing. The Company is a corporation duly organized and validly existing under the laws of the State of Nevada. The Company
has all requisite corporate power and authority to own and operate its properties and assets, and to execute and deliver this Agreement,
the Note and the Warrant. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation
in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification
necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or
its business.

 

    	2

    	 

    

 

(b)

Subsidiaries. The
Company owns 100% of the ownership interest of each of Geospatial Mapping Systems, Inc., a Delaware
corporation, and Utility Services and Consulting Corp., a Nevada corporation. Other than these two corporations, the Company does
not own an equity interest in any other entity and has no other subsidiaries. Each of these corporations is duly organized under
the laws of its respective state of incorporation and is duly qualified and is authorized to do business as a foreign corporation
in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification
necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on such corporation
or its business. In the event that the Company creates or acquires an interest in any other business or entity (each a “New
Subsidiary”) prior to the date on which the Company has satisfied all of its obligations under the Note, then the Company
will cause each such New Subsidiary to execute and become a party to and bound by the Guaranty. Each
of these subsidiaries, including any New Subsidiary, will substantially benefit from the proceeds of the sale of the Note and Warrant
to the Purchaser. 

(c)

Authorization;
Binding Obligation. All corporate action on the part of the Company necessary for the authorization, execution and delivery
of this Agreement, the Note, the Warrant, the Security Agreement, and the Guaranty, and the performance of all obligations of the
Company hereunder and thereunder has been taken and no further authorizations or actions are required.

(i)

This Agreement, the Note, the Warrant,
and the Security Agreement constitute, valid and binding obligations of the Company enforceable in accordance with their terms,
except as limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting
enforcement of creditors’ rights, and (ii) general principles of equity that restrict the availability of equitable
remedies.

(ii)

The Note and the Warrant, and any shares
of Common Stock or other equity security of the Company issued upon conversion or exercise of the Note or Warrant when issued in
accordance with the terms of this Agreement, the Note, or the Warrant, as the case may be, will be validly issued and will be free
of restrictions on transfer other than restrictions on transfer under this Agreement, the Notes, the Warrants and applicable federal
and state securities laws.

(d)

Capitalization
of the Company. Immediately prior to giving effect to the transactions contemplated by this Agreement, the authorized capital
stock of the Company consists of (i) 350,000,000 shares of common stock, par value $.001 per share, of which 125,681,645 are issued
and outstanding, and (ii) 25,000,000 shares of preferred stock, par value $.001 per share. 5,000,000 of which are designated as
“Series B Convertible Preferred Stock” of which 530,050 are issued and outstanding. As of the date hereof 9,050,000
shares of Common Stock are reserved for issuance upon exercise of stock options granted under the Company’s 2007 Stock Option
Plan and 25,000,000 shares of Common Stock are reserved for issuance upon exercise of stock options and other stock awards to be
granted under the Company’s 2013 Equity Incentive Plan (15,996,000 of which have been granted as of the date hereof). 
As of the date hereof there are outstanding warrants to purchase 10,627,007 shares of Common Stock, and warrants to purchase 344,993
shares of Series B Convertible Preferred Stock.

(e)

Proceeds.
The Company shall use the proceeds from the issuance and sale of the Note and Warrant for working capital and other general corporate
purposes.

 

    	3

    	 

    

 

(f)

Affirmation and
Obligation of the Company. The Company hereby affirms that the first use of the net proceeds of all future capital raises will
be to prepay the Note and accrued interest due under the terms of the Note.

(g)

Reservation of
Shares. The Company has reserved from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive
rights, to provide for the issuance of Common Stock upon the full conversion of the Note (assuming a conversion price of $0.15)
and exercise of the Warrant.

(h)

Issuance of Shares.
The Conversion Shares and Warrant Shares are duly authorized and reserved for issuance and, upon conversion of the Note and Exercise
of the Warrant in accordance with their respective terms, will be validly issued, fully paid and non-assessable, and free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

(i)

No Conflicts.
The execution, delivery and performance of this Agreement, the Security Agreement, the Note and the Warrant by the Company and
the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance
and reservation for issuance of the Conversion Shares and Warrant Shares) will not (i) conflict with or result in a violation of
any provision of the Company’s Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a
breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default)
under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent,
patent license or instrument to which the Company or any of its subsidiaries is a party, or (iii) result in a violation of any
law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of
any self-regulatory organizations to which the Company or its securities are subject) applicable to the Company or any of its subsidiaries
or by which any property or asset of the Company or any of its subsidiaries is bound or affected, (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a material
adverse effect on the Company or its business).

4.

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

(a)

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

 

    	4

    	 

    

 

(b)

Investment Representations.
Purchaser understands that the Note and the Warrant issued to Purchaser hereunder, and the shares of Common Stock issuable upon
exercise of the Warrant (the “Shares”) have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”). Purchaser also understands that the Note and the Warrant 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.

(c)

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 Note, the Warrant and the 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.

(d)

Investment.
Purchaser is acquiring the Note, the Warrant and the 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 Note, the Warrant and the 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.

(e)

Information.
Purchaser has been furnished with all information which it deems necessary to evaluate the merits and risks of purchasing the Note
and the Warrant and has had the opportunity to ask questions concerning the Note, the Warrant 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 Note, the Warrant and the Company. Purchaser
understands that an investment in the Note and Warrant involves significant risks.

(f)

Restricted Securities.
Purchaser understands that the Note, the Warrant and the 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 Note, the Warrant and the Shares may be resold without registration under the Acts only in
certain limited circumstances. Purchaser acknowledges that the Note, the Warrant and the Shares must be held indefinitely unless
subsequently registered under the Acts or an exemption from such registration is available. Notwithstanding the above; the Company
shall grant to Holder “Piggy-Back” registration rights for the Common Stock underlying the Warrant.

 

    	5

    	 

    

 

(g)

Accredited Investor.
Purchaser is an “accredited investor” within the meaning of Rule 501 promulgated under the Securities Act. Purchaser
has considered the federal and state income tax implications of an investment in the Securities and has consulted with his or its
own advisors with respect thereto.

(h)

Residence.
The office or offices of Purchaser in which its investment decision was made is located at the address of Purchaser set forth on
the signature page hereto.

(i)

Legends.
Purchaser understands and agrees that the Note will bear a legend as set forth on Exhibit A and, the Warrant will bear a
legend as set forth on Exhibit B. In addition, the Note, the Warrant and any certificate or other instrument representing
the Shares will bear any other legend that may be required by applicable law, by the Company’s Articles of Incorporation
or Bylaws, or by any agreement between the Company and Purchaser.

5.

Covenants.
The Company agrees to take any and all action as is necessary or desirable to authorize, reserve and issue any shares of the Company’s
capital stock issuable upon exercise of the Warrants.

6.

Miscellaneous.

(a)

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

(b)

Indemnification.
In consideration of the Purchaser’s execution and delivery of this Agreement and purchase of the Note and the Warrants hereunder,
and in addition to all of the Company’s other obligations under this Agreement, the Company shall defend, protect, indemnify
and hold harmless the Purchaser and each other holder of the Notes and the Warrants, and all of their officers, directors, employees
and agents (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively,
the “Subscriber Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Subscriber
Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees
and disbursements (the “Indemnified Liabilities”), incurred by the Subscriber Indemnitees or any of them as
a result of, or arising out of, or relating to (a) any material misrepresentation by Company or any material breach of any covenant,
agreement, obligation, representation or warranty by the Company contained in this Agreement, or (b) after any applicable notice
and/or cure periods, any breach or default in performance by the Company of any covenant or undertaking to be performed by the
Company hereunder. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company
shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible
under applicable law.

 

    	6

    	 

    

 

(c)

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

 

(d)

Entire Agreement.
This Agreement, the Note, the Warrant, the Security Agreement, the Guaranty, and all exhibits and schedules hereto and delivered
pursuant to the terms hereof constitute the full and entire understanding and agreement between the parties with regard to the
subjects hereof and no party shall be liable or bound to any other in any manner by any representations, warranties, covenants
and agreements except as specifically set forth herein and therein. Any previous agreement among the parties relative to the specific
subject matter hereof is superseded by this Agreement, the Note, the Warrant, the Security Agreement, the Guaranty, and all exhibits
and schedules hereto and delivered pursuant to the terms hereof.

(e)

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

(f)

Amendment or
Waiver. This Agreement, the Security Agreement, the Guaranty, the Note and the Warrant may only be amended, and any term or
provision thereof may only be waived, (either generally or in a particular instance and either retroactively or prospectively)
in writing executed by both the Company and the Holder.

(g)

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

(h)

Expenses.
Each party shall bear their costs and expenses that it incurred in connection with the negotiation and consummation of this Agreement,
the Note, the Warrant, the Security Agreement, and the Guaranty; provided however, the Company shall pay the reasonable fees of
Pollick & Schmahl, LLC, counsel to Purchaser upon receipt of the purchase price from the Purchaser.

 

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(i)

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

(j)

Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall
constitute one instrument.

 

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BLANK]

 

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

	 	COMPANY:
	 	GEOSPATIAL CORPORATION
	 	 	 
	 	By:	/s/ Mark Smith
	 	 	Mark Smith
	 	 	Chief Executive Officer
	 	 	 
	 	 	 
	 	Address:
	 	 	 
	 	229 Howes Run Road 
	 	Sarver, PA 16055
	 	 	 
	 	PURCHASER:
	 	HORBERG ENTERPRISES LP
	 	Horberg Ventures GP, Inc., General Partner
	 	By:	s/ Howard T. Horberg
	 	Name:	Howard T. Horberg
	 	Title: 	President    
	 	        	 
	 	Address:
	 	 	 
	 	289 Prospect Avenue
	 	Highland Park, IL 60035-3353

 

 

    	 

    	 

    

 

EXHIBIT A

 

FORM OF NOTE

 

 

    	 

    	 

    

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT 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. THIS NOTE
IS SUBJECT TO THAT CERTAIN NOTE AND WARRANT PURCHASE AGREEMENT, DATED AS OF JANUARY 16, 2015, BY AND BETWEEN THE COMPANY AND THE
HOLDER OF THIS NOTE.

 

 

SENIOR SECURED PROMISSORY NOTE

 

	$500,000.00	Issue Date: January 16, 2015

 

For value received, Geospatial
Corporation, a Nevada corporation (together with its successors and assigns, the “Company”), promises to pay
to Horberg Enterprises LP (the “Holder”), the principal sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) together
with any and all interest accrued but unpaid thereon and all other amounts provided for herein, including, without limitation,
any Expenses (as that term is defined below) (collectively, the “Indebtedness”). This Note is issued pursuant to that
certain Note and Warrant Purchase Agreement dated as of January 16, 2015, by and between the Company and the Holder (the “Note
and Warrant Purchase Agreement”). This Note is subject to the terms of the Note and Warrant Purchase Agreement and the
following additional terms and conditions.

 

1.

Definitions;
Security. Capitalized terms used herein and not otherwise defined have the meanings given such terms in the Note and
Warrant Purchase Agreement. This Note and the Company’s obligations hereunder are secured by all of the assets of the
Company and each of its subsidiaries as provided the Security Agreement dated as of January 16, 2015 between the Company,
Geospatial Mapping Systems, Inc., and Utility Services and Consulting Corp., on the one hand, and the Holder, on the other
hand (the “Security Agreement”). Additionally, all of the Company’s subsidiaries have guaranteed the
Company’s obligations under this Note pursuant to the Unlimited Guaranty (the “Guaranty”) dated as of
January 16, 2015, and executed by Geospatial Mapping Systems, Inc. (“Mapping”), a
Delaware corporation, and Utility Services and Consulting Corp. (collectively with Mapping, and any New Subsidiary, the
“Guarantors” and each a “Guarantor”), a Nevada corporation. This Note, the Note and Warrant
Purchase Agreement, the Security Agreement, and the Guaranty shall be collectively referred to as the “Transaction
Documents”.

 

    	2

    	 

    

 

2.

Payment Terms.

2.1

Maturity Date.
This Note will automatically mature and all unpaid principal and accrued and unpaid interest will be due and payable on the earlier
of (a) April 8, 2015; (the “Maturity Date”), or (b) the occurrence of an Event of Default (as defined in Section
4 below), or (c) the date the Company receives net proceeds in excess of $1,000,000 in a debt or equity financing.

2.2

Interest. Interest
shall accrue on the unpaid principal amount of this Note at a rate per annum of (i) 0% from the date hereof until April 8, 2015,
and (ii) 20% from April 8, 2015, and shall be payable as set forth in Section 2.1.

2.3

Prepayment.
The Company shall have the right to prepay all or any portion of this Note, at any time.

3.

Payment.
Except as set forth herein, all payments shall be made in lawful money of the United States of America to the Holder at 289 Prospect
Avenue, Highland Park, IL 60035-3353. Payment shall be credited first to any Expenses (as that term is defined below), second to
any accrued interest then due and payable and the remainder applied to principal.

4.

Events of Default.

4.1

The entire Indebtedness,
including unpaid principal sum of this Note, together with any and all interest accrued but unpaid thereon and any other amounts
provided for herein, shall become immediately due and payable upon the occurrence of an Event of Default. Subject to the foregoing,
an Event of Default shall be deemed to have occurred upon the occurrence of any of the following:

(a)

the failure of the
Company or any Guarantor to pay any Indebtedness, principal, interest, Expenses (as that term is defined below) or any other amounts
under this Note within ten (10) calendar days after when due;

(b)

the filing by or
against the Company of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation, conservatorship or
similar proceeding (and, in the case of any such proceeding instituted against any obligor, such proceeding is not dismissed or
stayed within 60 days of the commencement thereof);

(c)

any assignment by
the Company for the benefit of creditors;

(d)

a default with respect
to any other indebtedness of the Company for borrowed money, if the effect of such default is to cause or permit the acceleration
of such debt, unless the holder of such debt waives such default or otherwise agrees to forbear from exercising its rights with
respect to such default;

 

    	3

    	 

    

 

(e)

the entry of a final
judgment against the Company in an amount exceeding $100,000 and the failure of the Company to discharge the judgment within thirty
(30) days of the entry thereof;

(f)

the Company ceases
doing business as a going concern;

(g)

the Company or any
Guarantor defaults in observing or performing any of its respective covenants under any of the Transaction Documents (other than
payment obligations under this Note), and such default continues for a period of ten (10) days after notice in writing has been
sent to the Company; or

(h)

the making of any
materially false representation or warranty by the Company or any of the Guarantors in any of the Transaction Documents.

4.2

Upon the occurrence
of an Event of Default, interest shall accrue on the unpaid principal of this Note at a rate of 20% per annum from the date of
such Event of Default until the date of such Event of Default has been waived by the Holder or cured to the reasonable satisfaction
of the Holder.

4.3

Upon the occurrence
of an Event of Default, and at any time thereafter unless and until such Event of Default has been waived in writing by the Holder
or cured to the reasonable satisfaction of the Holder, the Holder may, by notice to the Company declare the entire Indebtedness,
including any unpaid principal of and any accrued interest or other amounts provided for in respect of or under this Note, to be
immediately due whereupon the same shall be immediately due and payable. The Holder shall also have any and all other rights which
the Holder may have pursuant to this Note, the Note and Warrant Purchase Agreement, the Security Agreement, the Guaranty, and under
applicable law. Notwithstanding the foregoing, if an Event of Default specified in Section 4.1(b) or Section 4.1(c) shall
occur, then all of the Indebtedness, shall become immediately due and payable without any action on the part of the Holder and
the Company shall immediately pay to the Holder all amounts due and payable with respect to this Note.

4.4

The Company shall
reimburse the Holder for any and all costs and expenses that Holder may incur in connection with the exercise of Holder’s
rights and remedies under this Note, the Note Purchase Agreement, the Security Agreement, and the Guaranty, including, without
limitation, all reasonable attorneys’ fees and legal expenses and any other expenses or costs related to enforcing Holder’s
rights or pursuing Holder’s remedies under this Note, the Note and Warrant Purchase Agreement, the Security Agreement, or
the Guaranty that may be incurred by Holder (collectively, the “Expenses”). Any and all such Expenses shall be added
to and be included as part of the Indebtedness.

 

    	4

    	 

    

 

5.

Ranking; Priority.
The Indebtedness evidenced by this Note shall rank senior to all other indebtedness of the Company. Accordingly, the Company represents
and warrants that it has no indebtedness outstanding other than unsecured trade debt incurred in the ordinary course of the Company’s
business and an unsecured Senior Note dated October 15, 2010 in the original principal amount of $1.0 million payable to Donald
DeLaski Revocable Trust..

6.

Conversion.

6.1

Conversion.
In the event that the principal and accrued interest is not paid on or prior to April 8, 2015, the Holder shall have the right,
at any time and from time to time, to convert the unpaid principal and accrued interest, if any, of this Note, in whole or in part,
into shares of common stock, par value $ .001 per share, of the Company (“Common Stock” or “Conversion
Shares”) at a price per share (the “Conversion Price”) equal to 75% of (i) if the Common Stock is
then traded on a national securities exchange or the Nasdaq Stock Market (or a similar national quotation system), the average
of the closing “bid” prices of the Common Stock on such exchange or system for the ten (10) trading days ending on
the date of delivery to the Company of a Notice of Conversion in the form annexed hereto as Exhibit A, or (ii) if the Common Stock
is then actively traded over-the-counter, the average of the closing bid prices for the ten (10) trading days ending on the date
of delivery to the Company of a Notice of Conversion in the form annexed hereto as Exhibit A; provided, however, that in no event
shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which
the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common
Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or
unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations
contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect
to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates
of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The
number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion
Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion;
provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected
to result in, notice) to the Company before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”).
The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount
of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest, if any, on
such principal amount at the interest rates provided in this Note to the Conversion Date.

 

    	5

    	 

    

 

6.2

Mechanics and Effect
of Conversion.

(a)

No fractional shares
will be issued upon conversion of this Note. In lieu of any fractional share to which the Holder would otherwise be entitled, the
Company will pay to the Holder in cash the unconverted balance that would otherwise be converted into such fractional share.

(b)

In
the event that this Note is converted in full pursuant to Section 5.1, the Holder shall surrender this Note, and the Notice
of Conversion annexed hereto as Exhibit A by e-mail or facsimile, duly endorsed (but without the requirement of a medallion signature
guarantee), to the Company and the Note shall thereupon be canceled; provided that if this Note is converted only in part, then
only the Notice of Conversion, duly endorsed (but without the requirement of a medallion signature guarantee), shall be required
to be delivered by e-mail or facsimile to the Company. As soon as practicable following the Company’s receipt of a Notice
of Conversion such and at its expense, but not later than three business days after receipt of a Notice of Conversion, the Company
will issue and deliver to the Holder, a certificate or certificates representing the number of shares of the Company’s Common
Stock to which the Holder is entitled upon conversion, together with (i) a check payable to the Holder for any cash amounts in
lieu of fractional shares as described in clause (a) above and (ii) to the extent that the Holder has converted this Note only
in part, the Replacement Note. If permissible under Rule 144 under the Securities Act of 1933, as amended, or if the Conversion
Shares have been registered for re-sale, all shares shall be delivered without legend and if, the Company is so eligible, by electronic
delivery to a brokerage account designated by Holder. The Company shall pay the cost of any legal opinion that may be necessary
for the delivery of the Conversion Shares.

6.3

Termination of
Rights. Upon conversion of this Note in accordance with Section 5.1, all rights with respect to the converted portion
of this Note shall terminate, whether or not the Note has been surrendered for cancellation, and the Company will be forever released
from all of its obligations and liabilities under the converted portion of this Note except its obligations pursuant to Section
5.2.

6.4

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

 

    	6

    	 

    

 

7.

Transfer; Successors
and Assigns. Subject to the restrictions set forth in the Note and Warrant Purchase Agreement, this Note may be transferred
only upon surrender of the original Note for registration of transfer, duly endorsed, or accompanied by a duly executed written
instrument of transfer in form satisfactory to Holder. Thereupon, a new note for the same principal amount and interest will be
issued to, and registered in the name, of, the transferee. Interest and principal are payable only to the registered holder of
this Note. The terms and conditions of this Note shall inure to the benefit of and binding upon the respective successors and assigns
of the parties.

8.

Governing Law.
This Note and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to principles
of conflicts of law and choice of law that would cause the laws of any other jurisdiction to apply.

9.

Notices.
Any notice or other communication required or permitted to be given hereunder shall be in writing by facsimile, e-mail, mail or
personal delivery and shall be effective upon delivery of such notice. The addresses for such communications shall be to the addresses
as shown on the books of the Company or to the Company at the address set forth in the Note and Warrant Purchase Agreement and
the following e-mail address at the Company (which e-mail address shall also be used for any notices sent solely to Geospatial
Corporation): mark.smith@geospatialcorp.com. A party may from time to time change the address to which notices to it are to be
delivered or mailed hereunder by notice in accordance with the provisions of this Section 8.

10.

Amendments and
Waivers. This Note 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 Note, 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.

11.

Stockholders,
Officers and Directors Not Liable. In no event shall any stockholder, officer or director of the Company be liable for any
amounts due or payable pursuant to this Note.

12.

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

13.

Benefits of this
Note. Nothing in this Note 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 Note and this Note shall be for the sole and exclusive benefit of the Company and
the Holder and any other permitted holder or holders of the Note.

 

 

    	7

    	 

    

 

 

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

 

 

	 	GEOSPATIAL CORPORATION
	 	 	 
	 	 	 
	 	By:	/s/ Mark A. Smith
	 	 	Mark A. Smith
	 	 	Chief Executive Officer

 

 

 

 

 

    	8

    	 

    

 

EXHIBIT B

 

FORM OF WARRANT

 

 

    	9

    	 

    

 

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: January 16, 2015

 

COMMON STOCK PURCHASE WARRANT

 

For value received, Geospatial
Corporation (the “Company”), a Nevada corporation, hereby certifies that Horberg Enterprises LP (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, ONE MILLION FIVE HUNDRED THOUSAND (1,500,000) shares of the Company’s common stock,
par value $.001 per share (“Common Stock” or “Warrant Shares”) at a price of $0.25 per share
(the “Exercise Price”). This Warrant is issued pursuant to that certain Note and Warrant Purchase Agreement
dated as of January 16, 2015, by and between the Company and the Holder (the “Purchase Agreement”). This Warrant
is subject to the terms of the Purchase Agreement and the following additional terms and conditions.

 

1.

Certain Definitions.

 

(a)

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

(b)

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

 

    	10

    	 

    

 

(c) 

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

(d) 

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

(e) 

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

(f) 

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

 

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2.

Exercise of Warrant.

 

(a)

The purchase rights represented
by this Warrant are exercisable by the Holder, in whole or in part, during the Exercise Period by delivery of the form of Notice
of Exercise attached hereto as Annex A duly completed and executed by the Holder by e-mail or facsimile, to the Company
at its principal executive office. In the event of an exercise for cash, the Holder shall deliver to the Company payment in cash,
in lawful money of the United States of America, including by certified or official bank check made payable to the order of the
Company or by wire transfer of immediately available funds to an account designated by the Company, of an amount equal to the Exercise
Price multiplied by the number of shares of Common being purchased pursuant to such exercise of the Warrant within two (2) business
days of delivery of the Notice of Exercise; provided, however, that in no event shall the Holder be entitled to exercise any portion
of this Warrant in excess of that portion of this Warrant upon exercise of which the sum of (1) the number of shares of Common
Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned
through the ownership of the unconverted portion of the Warrant or the unexercised or unconverted portion of any other security
of the Company subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number
of shares of Common Stock issuable upon the exercise of the portion of this Warrant with respect to which the determination of
this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding
shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined
in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations
13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued
upon each exercise of this Warrant shall be as set forth in the Notice of Exercise, in the form attached hereto as Exhibit A (the
“Notice of Exercise”), delivered to the Company by the Holder; provided that the Notice of Exercise is submitted by
facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Company before 6:00 p.m.,
New York, New York time on such exercise date.

(b)

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

 

 

    	12

    	 

    

 

(c)

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

 

(d)

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

 

(e)

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

 

(f)

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

 

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

 

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

 

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

 

 

    	13

    	 

    

 

(g) 

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

 

3.

Adjustments.

(a)

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

 

(b)

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

 

(c)

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

 

    	14

    	 

    

 

 

(d) 

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

 

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

 

For purposes of this Warrant,
“Excepted Issuance” shall mean (i) any issuance or sale by the Company of its securities as full or partial
consideration in connection with a strategic merger, acquisition, consolidation or purchase of the securities or assets of a corporation
or other entity (or any division or business unit thereof) so long as such issuances are not for the purpose of raising capital,
(ii) the Company’s issuance of securities in connection with strategic supply, sale or license agreements and other partnering
arrangements so long as such issuances are not for the purpose of raising capital, (iii) the Company’s issuance of securities
upon the conversion or exercise of options or convertible securities issued on or prior to the date hereof, or (iv) the Company’s
issuance of shares of Common Stock directly or upon the exercise of options to directors, officers, employees, or consultants of
the Company in connection with their service as directors of the Company, their employment by the Company or their retention as
consultants by the Company, in each case authorized by the Board and issued pursuant to the Company’s 2007 Stock Option Plan
or the Company’s 2013 Equity Incentive Plan (including all such shares of Common Stock and Options outstanding prior to the
date hereof).

 

    	15

    	 

    

 

 

 

(e)

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

 

(f)

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

 

4

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

 

    	16

    	 

    

 

(b)

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

 

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

 

7.

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

 

8.

Miscellaneous.

 

(a)

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

 

(b)

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

 

(c)

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

 

 

    	17

    	 

    

 

(d)

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

(e)

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

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

    	18

    	 

    

 

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

 

 

	 	Geospatial Corporation	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Mark Smith	 
	 	 	Mark Smith	 
	 	 	Chief Executive Officer	 

 

 

 

 

    	19

    	 

    

 

ANNEX A

 

NOTICE OF EXERCISE

To:GEOSPATIAL CORPORATION

(1)

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

(2)

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

 

	 
	 (Name)
	 
	 (Address)
	 

 

 

(3)

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

 

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

 

 

 

    	 

    	 

    

 

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

 

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

 

 

Dated: ______________

 

 

	 	Holder’s Signature:	 	 
	 	 	 	 
	 	Holder’s Address:	 	 
	 	 	 	 
	 	 	 	 

 

 

 

Signature Guaranteed: ___________________________________________

 

 

 

 

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

 

 

 

 

    	21

    	 

    

 

 

 

EXHIBIT C

 

FORM OF SECURITY AGREEMENT

 

 

 

    	22

    	 

    

 

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT
is dated as of January 16, 2015, by and between GEOSPATIAL CORPORATION (the “Company”), a Nevada corporation,
GEOSPATIAL MAPPING SYSTEMS, INC. (“Mapping”), a Delaware corporation, and UTILITY SERVICES AND CONSULTING CORP.
(“USC” and collectively with the Company and Mapping, the “Grantors” and each a “Grantor”),
a Nevada corporation, all with their respective chief executive offices located at 229 Howes Run Road, Sarver, PA 16055, on the
one hand, and HORBERG ENTERPRISES, LP (the “Lender”), on the other hand. For the sake of clarity, the Grantor,
the Company, and the Lender may be referred to herein collectively as the “Parties” and each as a “Party”.

WITNESSETH:

WHEREAS, the Lender, on
the date hereof, is making a loan to the Company in the principal amount of Five Hundred Thousand Dollars ($500,000.00),
in accordance with the terms of that certain Note and Warrant Purchase Agreement by and between the Lender and the Company dated
the date hereof (the “Purchase Agreement”) and evidenced by a Senior Secured Promissory Note issued by the Company
to Lender dated the date hereof in the principal amount of $500,000.00 (the “Note”); and

 

WHEREAS, Mapping and USC
are wholly-owned subsidiaries of the Company and will gain substantial benefit from the Loan (as defined below) made to the Company;
and

 

WHEREAS, pursuant to the
Unlimited Guaranty, dated the date hereof, Mapping and USC (each a “Guarantor” and collectively the “Guarantors”)
guaranteed all of the obligations of the Company owning to Lender; and

 

WHEREAS, to induce the
Lender to extend credit to the Company as provided in the Note and the Purchase Agreement, each Grantor desires to grant the Lender
security and assurance in order to secure the payment and performance of the Loan and to that effect to grant the Lender a first
priority, perfected security interest in all of its assets and, in connection therewith, to execute and deliver this Agreement.

 

NOW, THEREFORE, intending
to be legally bound hereby and as an inducement to the Lender to make the Loan to the Borrower under the Note and the Purchase
Agreement and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the parties,
the Parties hereto covenant and agree as follows:

 

1.

Recitals. The foregoing recitals
are incorporated herein and made a part hereof.

2.

Certain Definitions. In
addition to other terms defined elsewhere in this Agreement, the following words and terms shall have the following meanings, respectively,
unless the context hereof clearly otherwise requires:

 

    	23

    	 

    

 

(a)

“Agreement”
shall mean this Security Agreement as from time to time amended or supplemented.

 

(b)

“Code” shall
mean the Uniform Commercial Code as enacted and in effect in the Commonwealth of Pennsylvania at the date of this Agreement.

 

(c)

“Collateral”
shall mean all of the following property of each Grantor, wherever located, and whether now owned
or hereafter acquired or arising: 

 

(i)

Accounts;

(ii)

Chattel Paper, including Electronic
Chattel Paper;

(iii)

Commodity Contracts;

(iv)

Deposit Accounts;

(v)

Documents;

(vi)

Fixtures;

(vii)

General Intangibles, including Payment
Intangibles and Software;

(viii)

Goods, including all Inventory and
Equipment, and all accessions thereto and goods with which the goods are commingled;

(ix)

Health-Care-Insurance Receivables;

(x)

Instruments, including Promissory Notes;

(xi)

Investment Property;

(xii)

Letter-of-Credit Rights;

(xiii)

Software;

(xiv)

intellectual property, patents, patent
applications, trademarks, trademark applications, trade names, service marks, URLs and any other intellectual property or proprietary
rights or property;

(xv)

Commercial Tort Claims;

(xvi)

Insurance Proceeds;

(xvii)

Supporting Obligations related to the
foregoing;

(xviii)

Proceeds of any of the foregoing;

(xix)

all books, records, manuals, in any
form whatsoever;

(xx)

to the extent not listed above, all
other personal property; and

(xxi)

to the extent not listed above, as
original collateral, all proceeds and products of any of the foregoing.

 

All capitalized terms used in (i) through (xxi)
above in this definition of Collateral are used as defined in the Code. 

 

(d)

“Loan” shall
mean (i) all indebtedness, both principal and interest and any and all other amounts that may be owed to Lender, of the Company
to the Lender under the Note, (ii) all costs and expenses incurred by the Lender, its agents or assigns, in collection of any such
indebtedness or the enforcement of Lender’s rights under this Agreement, the Purchase Agreement, the Note, and the Guaranty,
including, without limitation, reasonable attorney’s fees and expenses incurred in connection therewith, and (iii) all future
advances made by the Lender for the protection, preservation or collection of any portion of the Collateral.

 

 

    	24

    	 

    

 

(e)

“Proceeds”
shall mean whatever is received when Collateral is sold, exchanged, leased, collected or otherwise disposed of and includes the
account arising when the right to payment is earned under a contract.

 

3.

Security Interest.
As security for the payment of the Loan, each Grantor hereby grants and assigns to the Lender, for value received, a first priority,
senior security interest in and to the Collateral wherever now or hereafter located and whether now owned or hereafter acquired
or arising. Each Grantor represents and warrants that: (a) it is the sole lawful owner of its respective Collateral, free and clear
of any liens, claims or encumbrances; (b) it has the right and power to pledge, sell, assign and transfer title to such Collateral
to the Lender; (c) no financing statement or other document evidencing a lien or security interest covering the Collateral, other
than in favor of the Lender, is on file in any governmental or public office; and (d) its principal place of business, state of
incorporation, and locations of Collateral are set forth on Schedule A attached hereto. Each Grantor further authorizes the Lender
to file initial financing statements describing the Collateral and any amendments or continuation statements thereto in any governmental
or public office that the Lender may deem necessary or appropriate.

 

4.

Intentionally Deleted.

 

5.

Intentionally Deleted.

 

6.

Sale, Lease or Disposition
of Collateral. Each Grantor will not, without the written consent of the Lender, sell, contract to sell or dispose of the Collateral
or any interest therein until the Loan has been fully satisfied.

 

7.

Maintenance of Collateral.
Each Grantor shall not impair the value of the Collateral and shall timely perform all maintenance recommended or that may otherwise
be necessary or prudent to maintain said Collateral in good working order, and to qualify for any performance warranties with respect
hereto. Each Grantor shall not cause itself to be in default or in any other manner breach its duties and obligations to maintain
the Collateral.

 

8.

Insurance. Each Grantor
will have and maintain insurance on the Collateral until this Agreement is terminated against all expected risks to which the Collateral
is exposed, including fire, theft and collision, to such extent as is customary with businesses in the same or similar business,
such insurance to be payable to the Lender and such Grantor as their interest may appear; all policies shall provide for thirty
(30) days’ written minimum cancellation notice to the Lender. The Lender may act as attorney for a Grantor in obtaining,
adjusting, settling and canceling such insurance.

 

9.

Books and Records.
Each Grantor represents, warrants, covenants, and certifies to the Lender that: (a) the Grantor’s chief executive office
and the office where Grantor keeps its records concerning the Collateral is located at 229 Howes Run Road, Sarver, PA 16055; (b)
Grantor will promptly notify the Lender of any proposed change thereof, or any relocation of the Records; (c) it will keep accurate
and complete books and records with respect to the Collateral at Grantor’s place of business as first written hereinabove
and (d) it will promptly furnish copies of such books and records and such other information as is requested, to the Lender upon
request.

 

    	25

    	 

    

 

 

10.

Filing Fees; Perfection
of Security Interest. Grantor shall pay on demand all filing fees with respect to the security interest created hereby. Promptly
upon request of the Lender, or its agents or assigns, from time to time, Grantor will do all such other acts and things and will
execute and deliver to the Lender, or its agents or assigns, all such other instruments and documents and all such other and further
assurances as the Lender may deem necessary or advisable in order to perfect and continue perfecting its security interest in the
Collateral or any part thereof.

 

11.

Additional Representations
and Warranties of Grantor. Each Grantor hereby agrees, acknowledges, represents and warrants to Lender that:

 

(a)

the benefit Grantor has received
or is receiving from the Loan and the proceeds thereof are reasonably equivalent value as the security interest in the Collateral
Grantor is granting to Lender pursuant to this Agreement; and

 

(b)

Grantor has sufficient assets
to operate Grantor’s business, meet Grantor’s obligations and pay Grantor’s debts as they come due in the ordinary
course of Grantor’s business.

 

12. 

Events of Default;
Application of Proceeds; Lender’s Limited Duty With Respect to Collateral. Default shall exist hereunder if any of the
following shall occur (each, a “Default”):

 

(a)

an Event of Default shall
occur under the Note, the Purchase Agreement or the Guaranty;

 

(b)

any violation, other than
an failure to pay any amount of money as and when due, of any covenant or agreement of any Grantor hereunder or contained in the
Note, the Purchase Agreement, or the Guaranty, which violation has not been cured within ten (10) days after notice in writing
has been sent to such Grantor;

 

(c)

if any Grantor, other than
sales and transfers of inventory and other assets in the ordinary course of its business, shall or shall attempt to: (1) remove
or allow removal of the Collateral from the county where such Grantor is now located or change the location of its chief executive
office or principal place of business without giving the Lender thirty (30) days’ prior written notice; (2) sell, encumber
or otherwise dispose of the Collateral or any interest therein or permit any lien or security interest to exist thereon or therein;
(3) conceal or lease the Collateral; (4) misuse or abuse the Collateral; or (5) use or allow the use of the Collateral in connection
with any undertaking prohibited by law;

 

(d)

if the Collateral shall
be attached, levied upon, seized in any legal proceedings;

 

(e)

if the Lender with reasonable
cause determines that its interest in the Collateral is in jeopardy; or

 

(f)

if the Grantors should
fail to keep the Collateral suitably insured.

 

 

    	26

    	 

    

 

Upon the occurrence of any Default: The Lender
shall have all of the rights and may seek all of the remedies provided for in this Agreement, the Note, the Guaranty, the Code,
and as otherwise may be provided by applicable law. Additionally, each Grantor agrees upon demand to deliver the Collateral to
the Lender, or the Lender may, with or without legal process, and with or without previous notice or demand for performance, enter
any premises wherein the Collateral may be, and take possession of the same, together with anything therein, and the Lender may
make disposition of the Collateral subject to any and all applicable provisions of applicable law. If the Collateral is sold at
public sale, the Lender may purchase the Collateral at such sale and may bid the amount of the Loan or any portion thereof. The
Lender, provided it has sent the statutory notice of default, may retain from the proceeds of such sale for the benefit of the
Lender and may apply the proceeds thereof in accordance with the provisions of the Note.

 

Each Grantor further authorizes
the Lender and does hereby irrevocably make, constitute and appoint the Lender and any officer or agent thereof, with full power
of substitution, as such Grantor’s true and lawful attorney-in-fact with full power, in its own name or in the name of such
Grantor, after the occurrence and during the continuance of an Event of Default: (a) to endorse any notes, checks, drafts, money
orders or other instruments of payment (including payments payable under or with respect to any policy of insurance) relating to
the Collateral or in connection therewith, to sign and endorse any invoices, drafts against debtors, assignments, verifications
and notices in connection with accounts and other documents relating to the Collateral; (b) to give written notice to such officials
of the United States Postal Service to effect such change or changes of address so that all mail addressed to such Grantor may
be delivered directly to a post office box or to such other depository as may be selected by the Lender and consented to by such
Grantor and to receive, open and dispose of mail addressed to such Grantor or as otherwise agreed by such Grantor; (c) to pay or
discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Collateral; (d)
to receive payment of, receipt for, settle, compromise or adjust and give discharges and releases for or in respect of any and
all moneys, claims and other amounts due and to become due at any time under or rising out of the Collateral; (e) to defend any
suit, action or proceeding brought against any Grantor with respect to any Collateral; and (f) to settle, compromise or adjust
any suit, action or proceeding described above and in connection therewith, to give such discharges or releases as the Lender may
deem appropriate and, generally, to sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the
Collateral as fully and completely as though the Lender was the absolute owner thereof for all purposes.

 

The Lender shall apply
the proceeds of the Collateral following collection and/or sale thereof after the occurrence of such a default, first to the payment
of the reasonable costs and expenses incurred by the Lender in connection therewith, including attorneys’ fees and legal
expenses, second to the repayment of all other amounts due and unpaid on the Loan, whether on account of principal or accrued interest
or otherwise as the Lender in its sole discretion may elect, and then to pay the balance if any, as required by law. If the proceeds
shall be insufficient to pay the above-described amounts, each Grantor shall be jointly and severally liable to the Lender
for the deficiency.

 

 

    	27

    	 

    

 

Lender’s sole duty
to Grantor or the Company with respect to the custody, safekeeping and physical preservation of any of the Collateral in Lender’s
possession, under the Code or otherwise, shall be to deal with such Collateral in the same manner as Lender deals with similar
property for its own account. Lender shall not be liable for failure to demand, collect or realize upon all or any part of the
Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any of the Collateral
upon the request of the Grantor, the Company, or otherwise.

 

14.

Applicable Law; Severability.
It is stipulated and agreed by Grantor, the Company, and the Lender that this Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania without giving effect to principles of conflicts of law. If any provision hereof
shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision
hereof, and this Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein.

 

15.

Waiver. No failure
or delay on the part of the Lender exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise
of any other right, power or privilege; no such failure or delay by the Lender shall constitute a waiver of its rights hereunder.
The rights and remedies of the Lender hereunder are cumulative and not exclusive of any right or remedy which it may otherwise
have.

 

16.

Expenses. The Parties
shall be responsible for their own costs and expenses related to this Agreement, provided however, that the Grantors shall pay
all of Lender’s reasonable attorneys’ fees and related costs and expenses related thereto, including, but not limited
to all filing fees and other applicable charges to file financing statements in the States of Delaware, Nevada, Pennsylvania, and
Arizona and any other jurisdictions that Lender may deem necessary or appropriate (the “Lender’s Costs”).
The Grantors shall pay all such Lender’s Costs upon demand by Lender or Lender’s agent, which demand may be sent via
email to Grantor’s legal counsel, David J. Lowe, at the following email address: djl@sgkpc.com.

 

17.

Miscellaneous. Upon
the earlier of (i) the irrevocable payment in full of the Loan, (ii) the conversion, at Lender’s sole and exclusive option
and election, of all remaining principal and interest under the Note in accordance with the terms of the Note, or (iii) the mutual
agreement of the parties hereto, this Agreement shall terminate and be of no further force and effect. Until such time, however,
this Agreement shall be binding upon and inure to the benefit of the Lender, the Company, and Grantor and their respective successors
and assigns, except that Grantor and the Company may not assign or transfer its rights or obligations hereunder.

 

 

[Signatures on Following Page]

 

 

    	28

    	 

    

 

IN WITNESS WHEREOF, the parties hereby
by their officers duly authorized, have executed this Agreement as of the day and year first above written.

 

	 	HORBERG ENTERPRISES, LP 
	  	 	 
	 	 	Horberg Ventures GP, Inc., General Partner
	 	 
	 	By:	/s/ Howard Todd Horberg, President
	 	 	Howard Todd Horberg, President 
	 	 	 
	 	 	 
	 	GEOSPATIAL MAPPING SYSTEMS, INC.
	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/ Mark A. Smith
	 	 	Mark A. Smith
	 	 	Chief Executive Officer
	 	 	 
	 	GEOSPATIAL CORPORATION
	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/ Mark A. Smith
	 	Name:	Mark A. Smith
	 	Its:	President
	 	 	 
	 	 	 
	 	UTILITY SERVICES AND CONSULTING 
	 	CORP.
	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/ Mark A. Smith
	 	Name:	Mark A. Smith
	 	Its:	President

 

 

 

 

[Signature Page to Security Agreement]

 

 

    	 

    	 

    

 

Schedule A

to Security Agreement

 

	Grantor:	Geospatial Corporation	Geospatial Mapping Systems, Inc.	Utility Services and Consulting Corp.	 
	State of Incorporation:	Nevada	Delaware	Nevada	 
	Organizational Number:	NV19951172609	4165837	NV20091404432	 
	Chief Executive Office 	
        229 Howes Run Road

        Sarver, PA 16055
	
        229 Howes Run Road

        Sarver, PA 16055
	
        229 Howes Run Road

        Sarver, PA 16055
	 
	Inventory Locations	None	None	None	 
	Equipment Locations	
        229 Howes Run Road

        Sarver, PA 16055
	
        229 Howes Run Road

        Sarver, PA 16055
	None	 
	Other Locations	None	None	None	 

 

 

 

 

    	 

    	 

    

 

EXHIBIT D

 

FORM OF GUARANTY

 

 

 

 

 

    	 

    	 

    

 

UNLIMITED GUARANTY

 

 

THIS UNLIMITED GUARANTY
(as amended, restated, supplemented or modified, this “Guaranty”) is entered into as of the 16th
day of January, 2015, by EACH OF THE UNDERSIGNED (each a “Guarantor” and, collectively, the “Guarantors”)
in favor of and for the benefit of Horberg Enterprises LP (the “Lender”).

 

RECITALS

 

A.

Pursuant to that certain
Senior Secured Promissory Note, dated the date hereof (as amended, restated, supplemented or modified, the “Note”),
by Geospatial Corporation, a Nevada corporation (the “Company”), in favor of and for the benefit of the Lender,
the Company will receive loans and other financial accommodations from the Lender and will incur obligations thereunder (collectively,
the “Obligations”).

 

B.

Pursuant to the
Security Agreement, dated the date hereof, the Company and the Guarantors granted a security interest in their respective assets
to the Lender.

 

C. 

The Guarantors,
being wholly owned subsidiaries of the Company and otherwise affiliated with the Company, will receive direct and indirect benefits
from such financial accommodations.

D.

Each Guarantor wishes to
grant to the Lender security and assurance in order to secure the payment and performance by the Company of all of its present
and future Obligations, and, to that effect, to guaranty the Obligations as set forth herein.

 

Accordingly, each Guarantor hereby agrees as
follows:

 

1.

Guaranty.

 

Each Guarantor, jointly and
severally, unconditionally and irrevocably guarantees to the Lender the full and punctual payment and timely performance by the
Company, when due, whether at the stated due date, by acceleration or otherwise, of all sums payable under the Note, whether principal,
interest, collection expenses or otherwise (collectively, the “Guaranteed Obligations”). This Guaranty is an
absolute, unconditional, continuing guaranty of payment and not of collection of the Guaranteed Obligations. This Guaranty is in
no way conditioned upon any attempt to collect from the Company or upon any other event or contingency, and shall be binding upon
and enforceable against each Guarantor without regard to the validity or enforceability of any Note or any term thereof. If for
any reason the Company shall fail or be unable duly and punctually to pay any of the Guaranteed Obligations the Guarantors will
forthwith pay the same, in cash, immediately upon demand.

 

2.

Guaranty Continuing, Absolute,
Unlimited.

 

The obligations of each Guarantor
hereunder shall be continuing, absolute, irrevocable, unlimited and unconditional, shall not be subject to any counterclaim, set-off,
deduction or defense based upon any claim any Guarantor or the Company may have against the Lender, the Company or any other Guarantor
or any other person, as the case may be, and shall remain in full force and effect without regard to, and, to the fullest extent
permitted by applicable law, shall not be released, discharged or in any way affected by, any circumstance or condition (whether
or not any Guarantor shall have any knowledge or notice thereof) whatsoever which might constitute a legal or equitable discharge
or defense.

 

    	 

    	 

    

 

 

3.

Waiver.

 

Each Guarantor unconditionally
waives, to the extent permitted by applicable law: (a) notice of any of the matters referred to in Section 2 hereof; (b) all notices
which may be required by statute, rule of law or otherwise to preserve any rights against any Guarantor hereunder, including, without
limitation, notice of the acceptance of this Guaranty, or the creation, renewal, extension, modification or accrual of the Guaranteed
Obligations or notice of any other matters relating thereto, any presentment, demand, notice of dishonor, protest, nonpayment of
any damages or other amounts payable under any Note; (c) any requirement for the enforcement, assertion or exercise of any right,
remedy, power or privilege under or in respect of any Note; (d) any requirement of diligence; (e) the right to require the Lender
to proceed against the Company, any other Guarantor or any other person liable on the Guaranteed Obligations, to proceed against
or exhaust any security held by the Lender or any other person, or to pursue any other remedy in the Lender’s power whatsoever;
(f) the right to have the property of the Company first applied to the discharge of the Guaranteed Obligations; and (g) all other
defenses of a surety. The Lender may, at its election, exercise any right or remedy they may have against the Company without affecting
or impairing in any way the liability of any Guarantor hereunder and each Guarantor waives, to the extent permitted by applicable
law, any defense arising out of the absence, impairment or loss of any right of reimbursement, contribution or subrogation or any
other right or remedy of any Guarantor against the Company, whether resulting from such election by the Lender or otherwise.

 

4.

Parties.

 

This Guaranty shall inure
to the benefit of the Lender and its successors, assigns or transferees, and shall be binding upon the Guarantors and their respective
successors and permitted assigns. No Guarantor may delegate any of its duties under this Guaranty without the prior written consent
of the Lender, and any such delegation without such consent shall be null and void and of not effect.

 

5.

Notices.

 

Any notices, requests and
demands to or upon the respective parties hereto to be effective shall be in writing and, unless otherwise expressly provided herein,
any notice shall be conclusively deemed to have been received by a party hereto and to be effective on the day on which delivered
if by-hand to such party or via courier, or if sent by registered or certified mail, on the third business day after the day on
which mailed in the United States, or if sent by nationally recognized overnight courier, on the date scheduled for delivery, in
each case, addressed to such party at the address set forth below:

 

(a)

if to the Lender:

 

Horberg Enterprises LP

ATTN: Howard T. Horberg

289 Prospect Avenue

Highland Park, IL 60035-3353

 

    	 

    	 

    

 

with a copy to:

 

Pollick & Schmahl, LLC

Michael M. Schmahl

1319 N. Wood Street

Unit 3B

Chicago, IL 60622

 

(b)

if to a Guarantor:

 

229 Howes Run Road

Sarver, PA 16055

Attn: Mark A. Smith

 

With a copy to:

 

David J. Lowe

Sherrard, German & Kelly, P.C.

535 Smithfield St., Ste. 300

Pittsburgh, PA 15222

 

(c)

as to each such party at such other
address as such party shall have designated to the other in a written notice complying as to delivery with the provisions of this
Section 5.

 

6.

Governing Law.

 

THIS GUARANTY SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF PENNSYLVANIA WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS
OF LAW. 

7.

Rights to Deal with the
Company.

 

At any time and from time
to time, without terminating, affecting or impairing the validity of this Guaranty or the obligations of any Guarantor hereunder,
the Lender may deal with the Company in the same manner and as fully as if this Guaranty did not exist and shall be entitled, among
other things, to grant the Company, without notice or demand and without affecting any Guarantor’s liability hereunder, such
extension or extensions of time to perform, renew, compromise, accelerate or otherwise change the time for payment of or otherwise
change the terms of indebtedness or any part thereof contained in or arising under the Purchase Agreement, the Note or any other
Transaction Documents (as defined in the Note), or to waive any obligation of the Company to perform, any act or acts as the Lender
may deem advisable.

 

8. 

Miscellaneous.

 

(a)

This Guaranty is the joint
and several obligation of each Guarantor, and may be enforced against each Guarantor separately, whether or not enforcement of
any right or remedy hereunder has been sought against any other Guarantor. Each Guarantor acknowledges that its obligations hereunder
will not be released or affected by the failure of the other Guarantors to execute the Guaranty or by a determination that all
or a part of this Guaranty with respect to any other Guarantor is invalid or unenforceable.

 

    	 

    	 

    

 

 

(b) 

If any term of
this Guaranty or any application thereof shall be invalid or unenforceable, the remainder of this Guaranty and any other application
of such term shall not be affected thereby.

 

(c)

Any term of this Guaranty
may be amended, waived, discharged or terminated only by an instrument in writing signed by the Guarantors and the Lender.

 

(d)

The headings in this Guaranty
are for purposes of reference only and shall not limit or define the meaning hereof.

 

(e)

No delay or omission by
the Lender in the exercise of any right under this Guaranty shall impair any such right, nor shall it be construed to be waiver
thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise of any other right.

 

IN WITNESS WHEREOF,
the undersigned has caused this Guaranty to be executed and delivered as of the day and year first above written.

 

 

 

	 	GEOSPATIAL MAPPING SYSTEMS, INC. 
	 	 	 
	 	 	 
	 	By: 	/s/ Mark A. Smith
	 	Name:	Mark A. Smith
	 	Title: 	President
	 	 	 
	 	UTILITY SERVICES AND CONSULTING CORP.
	 	 	 
	 	 	 
	 	By:	/s/ Mark A. Smith
	 	Name:	Mark A. Smith
	 	Title:	President

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