Document:

Geospatial Corporation - 10-K

Exhibit
10.39

 

NOTE
AND WARRANT PURCHASE AGREEMENT

 

THIS
NOTE AND WARRANT PURCHASE AGREEMENT (the “Agreement”) is dated as of December 14, 2016, by and between Geospatial
Corporation, a Nevada corporation (the “Company”), and David M. Truitt, an individual resident of Virginia
(the “Purchaser”).

 

RECITALS:

 

WHEREAS,
the Company issued and sold to Purchaser a Secured Promissory Note dated April 2, 2015 in the principal amount of $1,000,000,
which was amended pursuant to Agreements and Amendments dated as of January 27, 2016 and August 12, 2016 (as so amended, the “First
Note”); and

 

WHEREAS,
the Company issued and sold to Purchaser its Secured Promissory Note dated January 27, 2016, which was amended pursuant to an
Agreement and Amendment dated as of August 12, 2016 in the principal amount of $250,000.00 (as so amended, the “Second
Note”); and

 

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

 

WHEREAS,
the Company made a payment on the Notes in the amount of $200,000.00 on November 9, 2016; and

 

WHEREAS,
the Purchaser desires to make an additional loan to the Company in the amount of $100,000.00 and the Company desires to issue
to Purchaser a warrant to purchase 100,000 shares of the Company’s common stock, par value $0.001 per share (“Common
Stock”).

 

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

 

1.            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, a Secured Promissory Note in the principal amount of $100,000.00 in the form attached hereto
as Exhibit A (the “Note”) and a Warrant to purchase 100,000 shares of Common Stock (the “Warrant
Shares”) in the form attached hereto as Exhibit B (the “Warrant”). Purchaser shall hereby
pay to the Company the purchase price for the Note and Warrant in the amount of $100,000.00, 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.
As set forth in the Note, the Note may be converted into shares of Company Common Stock (“Conversion Shares”)
at any time at the election of Purchaser.

 

    

     

    

 

2.            Security.
Both the Notes and the Note shall be secured by all of the assets of the Company on the terms and conditions set forth in the
Security Agreement and by all of the assets of the Mapping pursuant on the terms and conditions set forth in the Mapping Security
Agreement, and each of the Security Agreement and Mapping Security Agreement shall be deemed amended accordingly.

 

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 in good standing under the laws of its jurisdiction
of organization, with all requisite corporate power and authority to own and operate its properties and assets and to execute
and deliver this Agreement, the Note and the Warrant. The Company and each of its subsidiaries 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 such corporation or its business. All of the issued shares of capital stock
or other ownership interests of each subsidiary of the Company have been duly and validly authorized and issued, are fully paid
and non-assessable and are owned directly by the Company and are free and clear of all liens, encumbrances, equities or claims,
other than a security interest in all of the Company’s assets granted to Purchaser pursuant to the Security Agreement.

 

(b)          Authorization;
Binding Obligation. All corporate action on the part of the Company necessary for the authorization, execution and delivery
of this Agreement, the Note and the Warrant and the performance of all obligations of the Company hereunder and thereunder has
been taken. This Agreement, the Note and the Warrant 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.

 

(c)          Capitalization.
Immediately prior to giving effect to the transactions contemplated by this Agreement, the authorized capital stock of the Company
consists of (i) 750,000,000 shares of Common Stock, of which 226,229,740 shares are issued and outstanding, and (ii) 25,000,000
shares of preferred stock, par value $.001 per share, 5,000,000 shares of which are designated as “Series B Convertible
Preferred Stock”, none of which 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 (18,358,500 of which have been granted as of the date hereof). As of the date hereof there are outstanding
warrants to purchase 50,075,088 shares of Common Stock, and warrants to purchase 344,993 shares of Series B Convertible Preferred
Stock. All of the outstanding shares of capital stock of the Company have been duly and validly authorized and issued, are fully
paid and non-assessable and are subject to no preemptive rights (and were not issued in violation of any preemptive rights). Except
as provided in the Note and the Warrant, the Company does not have outstanding any securities or other obligations providing the
holder the right to acquire Common Stock or other equity security that is not reserved for issuance as specified in this subsection
5(c), and the Company has not made any other commitment to authorize, issue or sell any Common Stock or other equity security.

 

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(d)          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.

 

(e)          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 the Conversion Shares and Warrant Shares.

 

(f)           Issuance
of Shares. The Conversion Shares and Warrant Shares are duly authorized and reserved for issuance and, upon conversion of
the Note or 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.

 

(g)          No
Conflicts. The execution, delivery and performance of this 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 Articles 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, or result in the creation of any lien, security
interest, charge or encumbrance upon any of the properties or assets of the Company or any of its subsidiaries under, any agreement,
indenture, patent, patent license or instrument to which the Company or any of its subsidiaries is a party, other than pursuant
to the Security Agreement, 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, with respect to clauses (ii) and (iii), 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. No notice to, filing with, exemption or review by, or authorization, consent or approval
of, any governmental body or agency is required to be made or obtained by the Company in connection with the performance by the
Company of its obligations under this Agreement, the Note or the Warrant, except for notice filings under applicable securities
laws.

 

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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.

 

(b)          Investment
Representations. Purchaser understands that the Note and the Warrant issued to Purchaser hereunder, and the Warrant 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 Warrant Shares and of protecting Purchaser’s interests
in connection therewith. Purchaser is able to fend for himself in the transactions contemplated by this Agreement and has the
ability to bear the economic risk of the investment, including complete loss of the investment.

 

(d)          Investment.
Purchaser is acquiring the Note, the Warrant and the Warrant Shares for investment for his own account, not as a nominee or agent,
and not with a view to, or for resale in connection with, any distribution thereof, and Purchaser has no present intention of
selling, granting any participation in, or otherwise distributing the same. Purchaser understands that the Note, the Warrant and
the Warrant Shares have not been registered under the Securities Act and applicable state securities laws (collectively, the “Acts”)
by reason of a specific exemption from the registration provisions of the Acts which depends upon, among other things, the bona
fide nature of the investment intent and the accuracy of Purchaser’s representations as expressed herein.

 

(e)          Information.
Purchaser has been furnished with all information which he 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 his satisfaction. Purchaser has been given the opportunity to obtain any additional information he
deems necessary to verify the accuracy of any information obtained concerning the Note, the Warrant and the Company. Neither such
inquiries nor any other investigation conducted by or on behalf of Purchaser or its representatives or counsel shall modify, amend
or affect Purchaser’s right to rely on the truth, accuracy and completeness of the Company’s representations and warranties
contained in this Agreement. Purchaser understands that an investment in the Note and Warrant involves significant risks.

 

(f)           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 Note and Warrant and has consulted
with his own advisors with respect thereto.

 

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(g)          Residence.
The place where Purchaser’s investment decision was made is located at the address of Purchaser set forth on the signature
page hereto.

 

(h)          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 Warrant Shares and the Conversion 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.           Reservation
of Shares. 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 Warrant and upon conversion of the Note.

 

6.           Registration
Rights.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9.            Miscellaneous.

 

(a)          Governing
Law; Arbitration. This Agreement and the 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 Agreement or the 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.

 

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

 

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

 

(d)          Entire
Agreement. This Agreement, the exhibits and schedules hereto and the Note, the Warrant and the Security Agreement 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 and the Warrant

 

(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 Note, the Warrant and the Security Agreement may be amended, and any term or provision of this
Agreement, the Note and the Warrant may be waived, (either generally or in a particular instance and either retroactively or prospectively)
upon the written consent of the Company and Purchaser.

 

(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.

 

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

 

(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 (and by facsimile or .PDF), each of which shall be an original, but
all of which together shall constitute one instrument.

 

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

 

	 	COMPANY:	 
	 	 	 	 
	 	GEOSPATIAL CORPORATION	 
	 	 	 	 
	 	By:	/s/
    Mark Smith	 
	 	 	Mark
    Smith	 
	 	 	Chief
    Executive Officer	 

	 	 	 
	 	Address:	 
	 	 	 
	 	229
    Howes Run Road	 
	 	Sarver,
    PA 16055	 
	 	 	 
	 	PURCHASER:	 
	 	 	 
	 	/s/
    David M. Truitt	 
	 	David
    M. Truitt	 
	 	 	 
	 	Address:	 
	 	 	 
	 	Discover
    Technologies, LLC	 
	 	13241
    Woodland Park Road	 
	 	Suite
    610	 
	 	Herndon,
    VA 20171	 
	 	United
    States	 
	 	 	 
	 	For Purposes of Agreeing to Section 2:
	 	 	 
	 	GEOSPATIAL MAPPING SYSTEMS, INC.

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

 

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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 AGREEMENT AND AMENDMENT, DATED AS OF JANUARY 26, 2016,
BY AND BETWEEN THE COMPANY AND THE HOLDER OF THIS NOTE.

 

SECURED
PROMISSORY NOTE

	 	 
	$100,000.00	Issue
    Date:      December
	14, 2016	 

 

For
value received, Geospatial Corporation, a Nevada corporation (together with its successors and assigns, the “Company”),
promises to pay to David M. Truitt (the “Holder,” which term shall include any holder or other transferee of
this Note), the principal sum of one hundred thousand ($100,000.00) together with any and all interest accrued but unpaid thereon.
This Note is issued pursuant to that certain Note and Warrant Purchase Agreement dated as of December 14, 2016, by and between
the Company and the Holder (as may from time to time be modified, supplemented and replaced, the “Agreement”).
This Note is subject to the terms of the 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 Agreement.
As used herein, the term “Loan Documents” shall mean this Note, the Agreement, the Security Agreement, the
Mapping Security Agreement, any other instrument or agreement which now or hereafter evidences, governs, secures or guaranties
the indebtedness evidenced by this Note, including any loan agreement, deed of trust, security agreement or guaranty, and all
renewals, extensions and modifications thereof and substitutions therefor. This Note is secured pursuant to the terms of a Security
Agreement dated as of April 2, 2015 between the Company and the Holder (as may from time to time be modified, supplemented and
replaced, the “Security Agreement”) and a Security Agreement dated as of April 2, 2015 between the Company
and Mapping (as may from time to time be modified, supplemented and replaced, the “Mapping Security Agreement”).

 

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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) January 31, 2017; (the “Maturity Date”), or (b) the occurrence of an Event of Default
(as defined in Section 5).

 

2.2          Interest.
Subject to Section 4.2, interest shall accrue on the unpaid principal amount of this Note at a fixed rate per annum of
(10%) from the date hereof until paid in full.

 

2.3          Prepayment.
The Company shall have the right to prepay all or any portion of this Note, at any time and from time to time, by paying the amount
to be prepaid and interest thereon. A partial prepayment of principal shall not affect the obligation of the Company to make subsequent
scheduled principal payments at the times and in the amounts required until this Note is paid in full.

 

3.            Payment.
Except as set forth herein, all payments shall be made in immediately available funds in lawful money of the United States of
America to the Holder, without offset, at 13241 Woodland Park Road Suite 610 Herndon, VA 20171 (or at such other address as the
Holder shall designate). The making of any payment in other than immediately available funds which the Holder, at its option,
elects to accept shall be subject to collection, and interest shall continue to accrue until the funds by which payment is made
are available to the Holder for its use. Payment shall be credited first to any accrued interest then due and payable and the
remainder applied to principal.

 

4.            Events
of Default.

 

4.1          The
entire unpaid principal sum of this Note, together with any and all interest accrued but unpaid thereon, 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
nonpayment of any principal, interest or other amounts due under this Note or the Existing Note within ten (10) calendar days
after when due;

 

(b)          any
default under the terms of any of the Loan Documents, or the failure to perform or observe any warranty, covenant, or other condition
of any of the Loan Documents, which, in any such case, has not been cured within 20 days after notice in writing has been sent
to the Company;

 

(c)          the
merger, consolidation, reorganization, dissolution, or termination of existence of the Company; or the pledge, lease or other
disposition of all or substantially all of the assets of the Company;

 

(d)          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);

 

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(e)          any
assignment by the Company for the benefit of creditors;

 

(f)           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;

 

(g)          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;

 

(h)          the
Company ceases doing business as a going concern; or

 

(i)           any
agreement or other document granting the Holder security for the payment of this Note shall cease for any reason to be in full
force and effect as such security with the priority stated to be created thereby, or the grantor of such security shall contest
the validity or enforceability of the security or deny that it has any further liability or obligation under such agreement or
other document.

 

4.2          Upon
the occurrence of an Event of Default, interest shall accrue on the unpaid principal of this Note at a fixed rate of 20% per annum
from the date of such Event of Default until the date 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 by the
Holder or cured to the reasonable satisfaction of the Holder, the Holder may, by notice to the Company declare the unpaid principal
of and any accrued interest in respect of or under this Note to be due whereupon the same shall be immediately due and payable.
The Holder shall also have any other rights which the Holder may have pursuant to the Loan Documents and applicable law. Notwithstanding
the foregoing, if an Event of Default specified in Section 4.1(b) shall occur, then the aggregate principal amount of this
Note (together with all accrued interest thereon), 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.

 

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5.             Conversion.

 

5.1          Conversion.
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. 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.

 

5.2          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 and at its expense, but not later than ten 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, a replacement Note in the form hereof in the principal amount equal to the remaining principal balance of this Note (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.

 

    5

     

    

 

5.3          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.

 

5.4          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 purchases (in an open market transaction or otherwise) shares of Common Stock (or
a broker or trading counterparty through which the Holder has agreed to sell shares makes such purchase) to deliver in satisfaction
of a sale by such Holder of the 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 honoring its obligation to deliver to Holder a certificate or
certificates representing the Conversion Shares and any remedies available to or elected by the Holder) the amount by which (A)
the Holder’s total purchase price (including brokerage commissions, if any) for the shares of common stock so purchased
exceeds (B) the aggregate Conversion 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 a Conversion Amount of $10,000 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.            Transfer;
Successors and Assigns. Subject to the restrictions set forth in the 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.

 

7.            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 Virginia, without giving effect to principles
of conflicts of law and choice of law that would cause the laws of any other jurisdiction to apply.

 

    6

     

    

 

8.            Notices.
Any notice or other communication required or permitted to be given hereunder shall be in writing by facsimile, e-mail, mail or
personal delivery and shall be effective upon delivery of such notice. The addresses for such communications shall be to the addresses
as shown on the books of the Company or to the Company at the address set forth in the Agreement. 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.

 

9.            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.

 

10.          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.

 

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

 

12.          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.

 

13.          Jurisdiction.
The Company irrevocably (i) submit to the exclusive jurisdiction of any Virginia state court or federal court sitting in the Commonwealth
of Virginia with respect to any suit, action, or proceeding relating to this Note, (ii) waives any objection which it may now
or hereafter have to the laying of venue of any such suit, action, or proceeding brought in any such court and any claim that
any such suit, action, or proceeding brought in any such court has been brought in an inconvenient forum, (iii) waives the right
to object that any such court does not have jurisdiction over it, and (iv) consents to the service of process in any such suit,
action, or proceeding by the mailing of copies of such process to it by certified mail at the addresses indicated in this Note
or at such other addresses of which the Holder shall have received notice. Nothing in this paragraph shall affect the Holder’s
right to serve process in any other manner permitted by law or to bring proceedings against the Company in any other court having
jurisdiction.

 

    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
	 	 	[SEAL]
	 	 	 
	 	By:	 
	 	 	Mark
    A. Smith
	 	 	Chief
    Executive Officer

 

    8

     

    
 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

(To
be Executed by the Registered Holder in order to Convert the Note)

 

The
undersigned hereby irrevocably elects to convert $                       of the Note (defined below) into shares of common stock, par value
$.001 per share (“Common Stock”), of Geospatial Corporation, a Nevada corporation (the “Company”)
according to the conditions of the Company’s Secured Promissory Note dated as of                        (the “Note”),
as of the date written below. If securities are to be issued in the name of a person other than the undersigned, the undersigned
will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates. No fee will be charged
to the Holder for any conversion, except for transfer taxes, if any. A copy of the Note is attached hereto (or evidence of loss,
theft or destruction thereof).

 

The
undersigned hereby requests that the Company issue a certificate or certificates for the number of shares of Common Stock set
forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below
or, if additional space is necessary, on an attachment hereto:

 

	Name:	 	 	 	 
	 	 
	Address:	 	 	 
	 	 
	Tax ID/SS #:	 	 

 

The
undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable to the undersigned
upon conversion of the Note shall be made pursuant to registration of the securities under the Securities Act of 1933, as amended
(the “Act”), or pursuant to an exemption from registration under the Act.

 

	Date
    of Conversion: 	 	 

 

	Applicable
    Conversion Price: 	 	 

 

	Number
    of Shares of Common Stock to be Issued	 
	Pursuant
    to Conversion of the Notes: 	 	 

 

    9

     

    

 

	Signature:	 	 
	 	 
	Name:	 	 	 
	 	 
	Address:	 	 	 

 

    10

     

    

 

EXHIBIT
B

 

FORM
OF WARRANT

 

    11

     

    

 

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: December 14, 2016

 

COMMON
STOCK PURCHASE WARRANT

 

For
value received, Geospatial Corporation (the “Company”), a Nevada corporation, hereby certifies that David M.
Truitt (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 hundred thousan (100,000) shares of the Company’s
common stock, par value $.001 per share (“Common Stock” or “Warrant Shares”) at a price
of $0.01 per share (the “Exercise Price”). This Warrant is issued pursuant to that certain Note and Warrant
Purchase Agreement dated as of December 14, 2016, 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.

 

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

 

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

 

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

 

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

 

    13

     

    

 

2.            Exercise
of Warrant.

 

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

 

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

 

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

 

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

 

    14

     

    

 

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

 

3.            Adjustments.

 

(a)          Adjustments
Generally. 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.

 

    15

     

    

 

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

 

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

 

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

 

(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.

 

    16

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    17

     

    

 

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

 

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

 

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

 

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

 

8.            Miscellaneous.

 

(a)          Notices.
Any notice or other communication required or permitted to be given hereunder shall be in writing by facsimile, e-mail, mail or
personal delivery and shall be effective upon delivery of such notice. The addresses for such communications shall be to the addresses
as shown on the books of the Company or to the Company at the address set forth in the 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.

 

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(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]

 

    19

     

    

 

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

	 	 	 
	Geospatial Corporation	 
	 	 	 
	By:	 	 
	Mark Smith	 
	Chief Executive Officer	 

 

    20

     

    

 

ANNEX
A

 

NOTICE
OF EXERCISE

 

To:           GEOSPATIAL
CORPORATION

 

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

 

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

	 	 	 
	 	(Name)	 
	 	 	 
	 	(Address)	 
	 	 	 

 

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

 

	Dated:	 	 	 	 
	 	 	 	(Name)	 
	 	 	 	 	 
	 	 	 	(Signature)	 
	 	 	 	 	 
	 	 	 	(Address)	 

 

	Dated:	 	 	 
	 	 	 	 
	 	 	 	 
	(Signature)	 	 

 

    

     

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute

this
form and supply required information.

Do
not use this form to exercise the warrant.)

 

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

 

Dated:
______________

 

	 	Holder’s
    Signature:	 	 
	 	 	 	 
	 	Holder’s
    Address:	 	 
	 	 	 	 
	 	 	 	 

 

	Signature Guaranteed:	 	 

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.EX10_1c

		
			Exhibit 10.1c
		

		
			EXECUTIVE EMPLOYMENT AGREEMENT
		

		
			This Employment Agreement (this “Agreement”), including Exhibit A attached hereto, is entered into among Green Bancorp, Inc., a Texas corporation, having its principal office at 4000 Greenbriar, Houston, TX 77098 (the “Company”), Green Bank, N.A., a national banking association, having its principal office at 4000 Greenbriar, Houston, TX 77098 (“Employer” or the “Bank”) and Donald S. Perschbacher (“Employee”). This Agreement is entered into on February 24, 2012, but shall become effective on March 26, 2012 (the “Effective Date”).
		

		
			WITNESSETH:
		

		
			WHEREAS, Employer desires to employ Employee pursuant to the terms and conditions and for the consideration set forth in this Agreement, and Employee desires to be employed by Employer pursuant to such terms and conditions and for such consideration.
		

		
			NOW, THEREFORE, for and in consideration of the mutual promises, covenants, and obligations contained herein, the Company, Employer and Employee agree as follows:
		

		
			ARTICLE 1: EMPLOYMENT AND DUTIES:
		

		
			1.1       Employer agrees to employ Employee, and Employee agrees to be employed by Employer, beginning as of the Effective Date and continuing until terminated pursuant to Article 3 hereof (the “Term”), subject to the terms and conditions of this Agreement.
		

		
			1.2       Employee agrees to serve in the assigned position and to perform diligently and to the best of Employee’s abilities the duties and services appertaining to such position as determined by the Board of Directors of the Company (the “Board”), as well as such additional or different duties and services appropriate to such position which Employee from time to time may be reasonably directed to perform by the Board. Employee shall at all times comply with and be subject to such policies and procedures as the Company or Employer may establish from time to time.
		

		
			1.3       Employee shall, during the period of Employee’s employment by Employer, devote Employee’s full business time, energy, and best efforts to the business and affairs of the Company, Employer and their respective subsidiaries. Employee may not engage, directly or indirectly, in any other business, investment, or activity that interferes (without written approval from the Board) with Employee’s performance of Employee’s duties hereunder, is contrary to the interests of the Company, Employer and their respective subsidiaries, or requires any significant portion of Employee’s business time.
		

		
			1.4       In connection with Employee’s employment by Employer, the Company and Employer promises and agrees to provide Employee as of the Effective Date with access to Confidential Information pertaining to the business and services of Employer as is appropriate for Employee’s employment responsibilities, as defined in Article 4 hereof.
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			ARTICLE 2: COMPENSATION AND BENEFITS:
		

		
			2.1       Employee shall be paid an annualized base salary as set forth on Exhibit A  (“Base Salary”), less payroll deductions and all required tax withholdings. Such Base Salary shall be paid in accordance with the Bank’s regular payroll practices applicable to its employees, as in effect from time to time, and shall be reviewed annually and may be increased from time to time by the Board in its sole discretion. Any calculation to be made under this Agreement with respect to Employee’s Base Salary shall be made using the then current Base Salary in effect at the time of the event for which such calculation is made.
		

		
			2.2       While employed by Employer, Employee shall be allowed to participate, on the same basis generally as other employees of Employer, in all general employee benefit plans and programs, including improvements or modifications of the same, which on the Effective Date or thereafter are made available by Employer to all or substantially all of Employer’s employees. Such benefits, plans, and programs may include, without limitation, medical, health, and dental care, life insurance, disability protection, and pension plans. Nothing in this Agreement is to be construed or interpreted to provide greater rights, participation, coverage, or benefits under such benefit plans or programs than provided to similarly situated employees pursuant to the terms and conditions of such benefit plans and programs.
		

		
			2.3       Employer shall not by reason of this Article 2 be obligated to institute, maintain, or refrain from changing, amending, or discontinuing, any such incentive compensation or employee benefit program or plan, so long as such actions are similarly applicable to covered employees generally. Unless specifically provided for in a written plan document adopted by the Board, none of the benefits or arrangements described in this Article 2 shall be secured or funded in any way, and each shall instead constitute an unfunded and unsecured promise to pay money in the future exclusively from the general assets of Employer.
		

		
			2.4       Employer may withhold from any compensation, benefits, or amounts payable under this Agreement all federal, state, city, or other taxes as may be required pursuant to any law or governmental regulation or ruling.
		

		
			ARTICLE 3: TERMINATION AND EFFECTS OF TERMINATION:
		

		
			3.1       Notwithstanding any other provisions of this Agreement, Employer shall have the right to terminate Employee’s employment under this Agreement at any time during the Term for any of the following reasons:
		

		
			(i)        For Cause (as defined herein) upon the determination by the Board that Cause exists for the termination of the employment relationship. For purposes of this Agreement, “Cause” shall mean (a) Employee’s gross negligence, recklessness or willful misconduct in the performance of the duties and services required of Employee pursuant to this Agreement; (b) Employee has been indicted or convicted of a felony, entered a plea of guilty or nolo contendere to a felony charge or accepted a deferred adjudication or probated sentence in connection with, an alleged felony; (c) Employee has willfully refused without proper legal reason to perform the duties and responsibilities required of Employee under this Agreement which remains 
		

		
			 
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			uncorrected for thirty (30) days following written notice to Employee by Employer of such failure to perform; (d) Employee has engaged in conduct or acts of moral turpitude that Employee knows or should know is materially injurious to Employer or any of its subsidiaries and affiliates; (e) Employee’s breach of any provision of this Agreement or corporate code or policy; or (f) Employee violates any applicable law in the conduct of Employee’s duties hereunder. It is expressly acknowledged and agreed that the decision as to whether “cause” exists for termination of the employment relationship by Employer is delegated to the Board for determination. If Employee disagrees with the decision reached by the Board, the dispute will be limited to whether the Board reached its decision in good faith;
		

		
			(ii)       for any other reason whatsoever, with or without Cause, in the sole discretion of the Board;
		

		
			(iii)      upon Employee’s death; or
		

		
			(iv)      upon Employee’s becoming disabled so as to entitle Employee to benefits under Employer’s long-term disability plan or, if Employee is not eligible to participate in such plan, if Employee is permanently and totally unable to perform Employee’s duties for Employer as a result of any medically determinable physical or mental impairment as supported by a written medical opinion to the foregoing effect by a physician selected by Employer.
		

		
			The termination of Employee’s employment by Employer during the Term shall constitute a “Termination for Cause” if made pursuant to Section 3.1(i); the effect of such termination is specified in Section 3.4. The termination of Employee’s employment by Employer during the Term shall constitute an “Involuntary Termination” if made pursuant to Section 3.1(ii); the effect of such termination is specified in Section 15. The effect of the employment relationship being terminated pursuant to Section 3.1(iii) as a result of Employee’s death is specified in Section 3.6. The effect of the employment relationship being terminated pursuant to Section 3.1(iv) as a result of the Employee becoming disabled is specified in Section 3.7.
		

		
			3.2     Employee shall have the right to terminate the employment relationship under this Agreement at any time for any of the following reasons:
		

		
			(i)      a material breach by Employer of any material provision of this Agreement;
		

		
			(ii)     Good Reason; or
		

		
			(iii)    for any other reason whatsoever, in the sole discretion of Employee.
		

		
			The termination of Employee’s employment by Employee shall constitute an “Involuntary Termination” if made pursuant to Section 3.2(i) or 3.2(ii); the effect of such termination is specified in Section 3.5. The termination of Employee’s employment by Employee shall constitute a “Voluntary Termination” if made pursuant to Section 3.2(iii); the effect of such termination is specified in Section 3.3. For purposes of this Agreement, “Good Reason” shall mean, in the absence of Employee’s prior written consent, the occurrence of any of the following:
		

		
			 
		

		
			
		

		
			

		 

		

			3

		

 

		

		
			(A)       a material adverse change, not consented to by Employee, in the nature or scope of Employee’s responsibilities, authorities or duties; (B) a substantial involuntary reduction in Employee’s Base Salary, except for across-the-board salary reductions similarly affecting all or substantially all employees; or (C) the relocation, without Employee’s consent, of Employee’s principal place of employment to another location of the Company outside of a fifty (50) mile radius from the location of Employee’s principal place of employment as of the date hereof (provided that such relocation results in an increase to Employee’s daily commute). Notwithstanding the foregoing, Employee must provide written notice to the Company and the Employer of the existence of any condition (or conditions) that Employee believes constitutes Good Reason within ninety (90) days of the initial existence of such condition (or conditions). Upon receipt of such notice, the Company will have forty-five (45) days to remedy the condition (or conditions). If the Company remedies the condition (or conditions) of which it received notice, then such condition (or conditions) shall not constitute Good Reason for purposes of this Agreement. It shall not be considered a material breach under this Agreement for Employer to change some of the duties Employee is asked to perform provided Employee maintains the title identified in Exhibit A and the primary duties related to that position.
		

		
			3.3       Upon a Voluntary Termination of the employment relationship by Employee, all future compensation to which Employee is entitled and all future benefits for which Employee is eligible shall cease and terminate as of the date of termination. Employee shall be entitled to pro rata salary through the date of such termination, but Employee shall not be entitled to any individual bonuses or individual incentive compensation not yet paid at the date of such termination.
		

		
			3.4       Upon a termination for Cause, all future compensation to which Employee is entitled and all future benefits for which Employee is eligible shall cease and terminate as of the date of termination. Employee shall be entitled to pro rata salary through the date of such termination, but Employee shall not be entitled to any individual bonuses or individual incentive compensation not yet paid at the date of such termination.
		

		
			3.5       Upon an Involuntary Termination of the employment relationship by either Employer or Employee, Employee shall be entitled, in consideration of Employee’s continuing obligations hereunder after such termination (including, without limitation, Employee’s obligations under Articles 4 and 5 of this Agreement), to receive continued payments of Base Salary for the period of time calculated as provided below (such period the “Salary Continuation Period”). Subject to Employee’s execution and non-revocation of a release of all claims in favor of the Company and its subsidiaries and affiliates in the form provided to Employee by the Company (with any changes necessary to comply with applicable law and/or make the release legally enforceable in the reasonable judgment of the Company), amounts payable to Employee pursuant to this Section 3.5 shall commence on the first payroll date on or following the sixtieth (60th) day following termination of employment; provided the period during which Employee may revoke such release has expired. The Salary Continuation Period shall be calculated as set forth in the table below.
		

		
			
		

		
			

		 

		

			4

		

 

		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Date of Termination

					
					
						Salary Continuation Period

				
	
					
						Prior to first anniversary of the Effective Date

					
					
						Through the first anniversary of the Effective Date

				
	
					
						On or after the first anniversary of the Effective Date

					
					
						Through the date of such Termination; provided, however, in the event termination is due to a relocation requirement, in which event Employee will be entitled to a 12 month Salary Continuation Period.

				
	
					
						Following a Change of Control (as that term is defined in the Green Bancorp, Inc. 2010 Stock Option Plan) that occurs after the first anniversary of the Effective Date

					
					
						12 months

				

		
			 
		

		
			3.6       Upon termination of the employment relationship as a result of Employee’s death, Employee’s heirs, administrators, or legatees shall be entitled to Employee’s pro rata salary through the date of such termination, but Employee’s heirs, administrators, or legatees shall not be entitled to any individual bonuses or individual incentive compensation not yet paid to Employee at the date of such termination.
		

		
			3.7       Upon termination of the employment relationship as a result of Employee’s disability pursuant to Section 3.1(iv), Employee shall be entitled to his pro rata salary through the date of such termination, but Employee shall not be entitled to any individual bonuses or individual incentive compensation not yet paid to Employee at the date of such termination.
		

		
			3.8       In all cases, the compensation and benefits payable to Employee under this Agreement upon termination of the employment relationship shall be offset against any amounts to which Employee may otherwise be entitled under any and all severance plans, and policies of Employer and its subsidiaries or affiliates.
		

		
			3.9       Termination of the employment relationship for any reason does not terminate those obligations imposed by this Agreement which are continuing obligations, including, without limitation, Employee’s obligations under Articles 4 and 5 of this Agreement.
		

		
			ARTICLE 4: NON-DISCLOSURE COVENANT
		

		
			4.1       For the purposes of this Article 4, the phrase “Confidential Information” means any and all of the following: trade secrets concerning the business and affairs of the Company and its subsidiaries and affiliates, product specifications, data, know-how, processes, graphs, 
		

		
			
		

		
			

		 

		

			5

		

 

		

		
			inventions and ideas, past, current, and planned research and development, current and planned distribution methods and processes, customer lists, current and anticipated customer requirements, price lists, market studies, business plans, computer software and programs (including object code, machine code, and source code), computer software and database technologies, systems, structures, and architecture (and related formulae, compositions, processes, improvements, devices, know-how, inventions, discoveries, concepts, ideas, designs, and methods); information concerning the business and affairs of the Company and its subsidiaries and affiliates (which includes historical financial statements, financial projections and budgets, historical and projected sales, capital spending budgets and plans, the names and backgrounds of key personnel, policies and procedures, personnel training techniques and materials, however documented); and notes, analysis, compilations, studies, summaries, and other material prepared by or for the Company and its subsidiaries and affiliates containing or based, in whole or in part, on any information included in the foregoing. Employee acknowledges and agrees that Confidential Information includes any such information that Employee may originate, learn, have access to, or obtain, whether in tangible form or memorized. Notwithstanding the foregoing, Confidential Information shall not include any information that the Employee demonstrates was or became generally available to the public other than as a result of a disclosure of such information by the Employee or any other person under a duty to keep such information confidential.
		

		
			4.2       Employer promises and agrees that during the Term and as part of the employment under this Agreement, Employer shall provide Employee with Confidential Information. Employee acknowledges that (a) the Company and its subsidiaries have devoted substantial time, effort, and resources to develop and compile the Confidential Information; (b) public disclosure of such Confidential Information would have an adverse effect on the business of the Company and its subsidiaries; (c) the Company and its subsidiaries would not disclose such information to the Employee, nor employ or continue to employ the Employee without the agreements and covenants set forth in this Article 4; and (d) the provisions of this Article 4 are reasonable and necessary to prevent the improper use or disclosure of Confidential Information.
		

		
			4.3       In consideration of the compensation and benefits to be paid or provided to Employee by the Company and its subsidiaries under this Agreement and the acknowledgments set forth above, Employee, during the Term and at all times thereafter, agrees and covenants as follows:
		

		
			(a)       Employee will hold in strictest confidence the Confidential Information and will not disclose it to any person except with the specific prior written consent of the Board or as may be required by court order, law, government agencies with which the Company deals in the ordinary course of its business, or except as otherwise expressly permitted by the terms of this Agreement. Employee will not remove from the Company premises or record (regardless of the media) any Confidential Information of the Company or its subsidiaries and affiliates, except to the extent such removal or recording is necessary for the performance of Employee’s duties. Employee acknowledges and agrees that all Confidential Information and physical embodiments thereof, whether or not developed by Employee, are the exclusive property of the Company or its subsidiaries and affiliates, as the case may be.
		

		
			(b)       Employee recognizes that the Company and its subsidiaries and affiliates have received and in the future will receive from third parties their confidential or proprietary 
		

		
			
		

		
			

		 

		

			6

		

 

		

		
			information subject to a duty on their parts to maintain the confidentiality of such information and to use it only for certain limited purposes. Employee agrees that Employee owes the Company, its subsidiaries and affiliates, and such third parties, at all times, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person (except as necessary in carrying out such Employee’s duties hereunder consistent with the Employer’s or the Company’s agreement with such third party) or to use it for the benefit of anyone other than for the Company or such third party (consistent with the Employer’s or the Company’s agreement with such third party) without the express written authorization of the Company.
		

		
			(c)       Employee agrees that, upon termination or the completion of the Term, Employee will deliver to the Company or its subsidiaries, as applicable, any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any of the aforementioned items belonging to the Company or any of its subsidiaries and affiliates.
		

		
			ARTICLE 5: NON-SOLICITATION AND NON-INTERFERENCE
		

		
			5.1       The Company, Employer and Employee hereby mutually agree that the nature of Employer’s business and Employee’s employment hereunder are based on the Company’s and Employer’s goodwill, public perception, and customer relations. Therefore, ancillary to this otherwise enforceable agreement and in exchange for Employee being provided access to the Confidential Information and the other agreements and consideration set forth herein, Employee hereby agrees and covenants to each and all of the following:
		

		
			(a)       During the Term and the longer of (i) the period of 12 months following the termination of this Agreement or (ii) the conclusion of the Salary Continuation Period, Employee hereby covenants and agrees that Employee will not, either directly, indirectly or through a subsidiary or an affiliate, solicit (x) any customer of the Company or its subsidiaries and affiliates that has utilized the services or products of the Company during the twelve (12) month period prior to the termination of this Agreement for the purpose of causing such customer to cease doing business with the Employer or (y) anyone with whom Employee had contact during the Term during the twelve (12) month period prior to the termination of this Agreement for purposes of selling products or services to such person that are in competition with the products or services offered or sold by the Company or its subsidiaries and affiliates.
		

		
			(b)       During the Term and the longer of (i) the period of 12 months following the termination of this Agreement or (ii) the conclusion of the Salary Continuation Period, Employee hereby agrees not to employ or otherwise engage , either directly, indirectly or through an affiliate, any employee or independent contractor of the Company or its subsidiaries and affiliates or any individual who was an employee or independent contractor of the Company or its subsidiaries and affiliates at any time during the twelve (12) month period prior to the termination of this Agreement, with whom Employee had contact during the Term. Further, Employee agrees not to contact in any manner any such employee or independent contractor for the purpose of encouraging such employee or independent contractor to leave or terminate his or her employment or engagement with the Company or its subsidiaries and affiliates.
		

		
			
		

		
			

		 

		

			7

		

 

		

		
			(c)       During the Term and the longer of (i) the period of 12 months following the termination of this Agreement or (ii) the conclusion of the Salary Continuation Period, Employee hereby agrees not to interfere or attempt to interfere with the relationship of the Company or any of its subsidiaries with any person who at the relevant time is an employee, contractor, supplier, or customer of the Company or its subsidiaries and affiliates.
		

		
			5.2       Employee acknowledges and agrees that the length and scope of the restrictions contained in Section 5.1 are reasonable and necessary to protect the legitimate business interests of the Company and its subsidiaries. The duration of the agreements contained in Section 5.1 shall be extended for the amount of any time of any violation thereof and the time, if greater, necessary to enforce such provisions or obtain any relief or damages for such violation through the court system. If any covenant in Section 5.1 of this Agreement is held to be unreasonable, arbitrary, or against public policy, such covenant will be considered to be divisible with respect to scope and time, and such lesser scope or time, or either of them, as an arbitrator or a court of competent jurisdiction may determine to be reasonable, not arbitrary, and not against public policy, will be effective, binding, and enforceable against Employee. In the event of termination of Employee’s employment with Employer for any reason, Employee consents to Employer communicating with Employee’s new employer, any entity in the business or through or in connection with which Employee is restricted hereunder, or any other party about the restrictions and obligations imposed on Employee under this Agreement.
		

		
			5.3       In the event the Company or its subsidiaries shall file a lawsuit in any court of jurisdiction alleging a breach of any of Employee’s obligations under Section 5.1 of this Agreement, the Non-Solicitation and Non-Interference periods referenced in Section 5.1 shall be tolled during any time Employee was in breach of those obligations.
		

		
			ARTICLE 6: MISCELLANEOUS:
		

		
			6.1       For purposes of this Agreement the terms “affiliates” of an entity or person or “affiliated” with an entity or person means any other entity or person who directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the entity or person.
		

		
			6.2       For purposes of this Agreement the term “subsidiary” of an entity means any other entity (i) in which such entity directly or indirectly owns 50% or more of such other entity’s voting securities or (ii) with which it is required to be consolidated under GAAP.
		

		
			6.3       For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:
		

		
			If to Employer:
		

		
			Green Bank, N.A.
4000 Greenbriar
Houston, Texas 77098
		

		
			
		

		
			

		 

		

			8

		

 

		

		
			Attention: Manuel J. Mehos
		

		
			If to the Company:
		

		
			Green Bancorp, Inc.
4000 Greenbriar
Houston, Texas 77098
Attention: Manuel J. Mehos
		

		
			If to Employee, to the address on file with the Company.
		

		
			Either Employer or Employee may furnish a change of address to the other in writing in accordance herewith, except that notices of changes of address shall be effective only upon receipt.
		

		
			6.4       This Agreement shall be exclusively governed in all respects by the laws of the State of Texas, excluding any conflict-of-law rule or principle that might refer the construction of the Agreement to the laws of another State or country.
		

		
			6.5       No failure by any party hereto at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
		

		
			6.6       The covenants by Employee in Articles 4 and 5 are essential elements of this Agreement, and without Employee’s agreement to comply with such covenants, Employer would not have entered into this Agreement or employed or continued the employment of Employee. Employer and Employee have independently consulted their respective counsel and have been advised in all respects concerning the reasonableness and propriety of such covenants, with specific regard to the nature of the business conducted by Employer. If Employee’s employment hereunder expires or is terminated by either party, this Agreement will continue in full force and effect as is necessary or appropriate to enforce the covenants and agreements of Employee in Articles 4 and 5.
		

		
			6.7       It is a desire and intent of the parties that the terms, provisions, covenants, and remedies contained in this Agreement shall be enforceable to the fullest extent permitted by law. If any such term, provision, covenant, or remedy of this Agreement or the application thereof to any person, association, or entity or circumstances shall, to any extent, be construed to be invalid or unenforceable in whole or in part, then such term, provision, covenant, or remedy shall be construed in a manner so as to permit its enforceability under the applicable law to the fullest extent permitted by law. In any case, the remaining provisions of this Agreement or the application thereof to any person, association, or entity or circumstances other than those to which they have been held invalid or unenforceable, shall remain in full force and effect.
		

		
			6.8       This Agreement shall be binding upon and inure to the benefit of Employer and any other person, association, their respective successors and assigns or entity which may hereafter acquire or succeed to all or substantially all of the business or assets of Employer by any means whether direct or indirect, by purchase, merger, consolidation, or otherwise. Employee’s rights and obligations under Agreement hereof are personal and such rights, benefits, and obligations of 
		

		
			
		

		
			

		 

		

			9

		

 

		

		
			Employee shall not be voluntarily or involuntarily assigned, alienated, or transferred, whether by operation of law or otherwise, without the prior written consent of Employer.
		

		
			6.9       There exist other agreements between Employer and Employee relating to the employment relationship between them, e.g., Employer’s policy and procedures and agreements with respect to benefit plans (collectively, the “Relationship Agreements”). For the avoidance of doubt, this Agreement specifically does not replace the Relationship Agreements, As of the Effective Date, this Agreement constitutes the entire agreement of the parties with regard to such subject matters, and contains all of the covenants, promises, representations, warranties, and agreements between the parties with respect such subject matters. Each party to this Agreement acknowledges that no representation, inducement, promise, or agreement, oral or written, has been made by either party with respect to such subject matters, which is not embodied herein, and that no agreement, statement, or promise relating to the employment of Employee by Employer that is not contained in this Agreement shall be valid or binding. Any modification of this Agreement will be effective only if it is in writing and signed by each party whose rights hereunder are affected thereby, provided that any such modification must be authorized or approved by the Board.
		

		
			6.10       The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. Notwithstanding anything herein to the contrary, (a) if at the time of Employee’s termination of employment with the Bank, Employee is a “specified employee” as defined in Section 409A and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A, then the Bank will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided by the Bank) until the date that is six months following Employee’s termination of employment with the Bank (or the earliest date as is permitted under Section 409A), (b) if any other payments of money or other benefits due to Employee hereunder could cause the application of an accelerated or additional tax under Section 409A, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by the Board that does not cause such an accelerated or additional tax, (c) to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, Employee shall not be considered to have terminated employment with the Bank for purposes of this Agreement and no payment shall be due to Employee under this Agreement until Employee would be considered to have incurred a “separation from service” from the Bank within the meaning of Section 409A, and (d) each amount to be paid or benefit to be provided to Employee pursuant to this Agreement, which constitutes deferred compensation subject to Section 409A, shall be construed as a separate identified payment for purposes of Section 409A. To the extent required to avoid an accelerated or additional tax under Section 409A, amounts reimbursable to Employee under this Agreement shall be paid to Employee on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits provided to Employee) during any one year may not effect amounts reimbursable or provided in any subsequent year. Employer shall consult with Employee in good faith regarding the implementation of the provisions of this Section 6.10; provided that neither the 
		

		
			

		 

		

			10

		

 

		

		
			Company, the Bank nor any of their subsidiaries, employees or representatives shall have any liability to Employee with respect to thereto.
		

		
			6.11       Any payments made to Employee pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) and any regulations promulgated thereunder as the same may be modified from time to time.
		

		
			ARTICLE 7: ARBITRATION:
		

		
			All disputes arising out of this Agreement shall be resolved as set forth in this Section 7; however, nothing contained in this Agreement shall preclude the Bank or Employer from seeking injunctive relief in a court of competent jurisdiction for the purpose of enforcing the promises and covenants made by Employee in this Agreement, including those in Article 4 and 5 of this Agreement. If the parties hereto are unable to resolve any dispute relating to the terms of this Agreement within ten (10) business days from the date negotiations began, then without the necessity of further agreement of either party, either party may submit the dispute to binding arbitration pursuant to this section. Such arbitration shall be conducted before a single arbitrator in Houston, Texas, in accordance with the Employment Arbitration Rules of the American Arbitration Association (“AAA”) then in effect, provided that the parties may agree to use an arbitrator other than those provided by the AAA. The arbitrators shall not have the authority to add to, detract from, or modify any provision of this Agreement. The arbitrators shall have the authority to order all remedies otherwise available in a civil court, including, without limitation, back pay, severance compensation, vesting options (or cash compensation in lieu of vesting options), reimbursement of costs, including those incurred to enforce this Agreement. A decision by the arbitrator shall be final and binding. The arbitration shall be conducted consistent with all applicable law, and the arbitration award shall be in writing, in a form capable of review if required by applicable law. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The prevailing party in any arbitration conducted under this Article 7 shall be entitled to an award of reasonable attorneys’ fees and expenses (each as determined by the arbitrators) arising from the arbitration.
		

		
			[Signatures Appear on the Following Page]
		

		
			
		

		
			

		 

		

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			IN WITNESS WHEREOF, the Company, the Bank and Employee have duly executed this Agreement in multiple originals to be effective on the date first stated above.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Green Bancorp, Inc.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Geoffrey D. Greenwade

				
	
					
						 

					
					
						Name:

					
					
						Geoffrey D. Greenwade

				
	
					
						 

					
					
						Title:

					
					
						Executive Vice President

				
	
					
						 

					
					
						Date:

					
					
						May 23, 2012

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Green Bank, N.A.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Geoffrey D. Greenwade

				
	
					
						 

					
					
						Name:

					
					
						Geoffrey D. Greenwade

				
	
					
						 

					
					
						Title:

					
					
						President & CEO

				
	
					
						 

					
					
						Date:

					
					
						May 23, 2012

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Employee

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Donald S. Perschbacher

				
	
					
						 

					
					
						Name:

					
					
						Donald S. Perschbacher

				
	
					
						 

					
					
						Date:

					
					
						May 23, 2012

				

		
			 
		

		
			
		

		
			

		 

		

			12

		

 

		

		
			EXHIBIT “A” TO
EXECUTIVE EMPLOYMENT AGREEMENT
BETWEEN GREEN BANK, N.A. AND DONALD S PERSCHBACHER
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Employee Name:

					
					
						Donald S. Perschbacher

				
	
					
						Bank Position:

					
					
						Executive Vice President and Corporate Chief Credit Officer

				
	
					
						Company Position:

					
					
						Executive Vice President

				
	
					
						Location:

					
					
						Primary office in Dallas, Texas and secondary office in Houston. Schedule to be determined between Dallas and Houston, and mutually agreed upon by Employee and Employer. Corporate housing to be provided while performing work in Houston.

				
	
					
						Reporting Relationship:

					
					
						President & Chief Executive Officer of Green Bank, N.A.

				
	
					
						Base Salary:

					
					
						$250,000.00 annually, paid twice monthly on the 15th and the last day of the month.

				
	
					
						Monthly Base Salary:

					
					
						$20,833.33 monthly

				
	
					
						Annual Bonus:

					
					
						Bonus determination shall be at the discretion of the Compensation Committee of the Board of Directors with a maximum guideline of 25 to 50% based on performance and goal attainment.

				
	
					
						Stock Options:

					
					
						50,000 shares of Green Bancorp, Inc. Common stock under the Green Bancrop, Inc. 2010 Stock Option Plan, subject to approval by the Board of Directors, distributed by vesting type (as defined in the applicable Award Agreement) as follows

				
	
					
						 

					
					
						 

					
					
						Time Based Vesting

					
					
						10,140

				
	
					
						 

					
					
						 

					
					
						Performance Vesting

					
					
						30,420

				
	
					
						 

					
					
						 

					
					
						Super Performance Vesting

					
					
						9,440

				
	
					
						Expenses:

					
					
						Reimbursement of reasonable business expenses, reimbursement of cellular phone bill up to $100.00 per month, and a car allowance of $1,000 per month.

				
	
					
						Benefits:

					
					
						Eligible for the package of benefits offered to all full-time employees.

				
	
					
						Paid Time Off:

					
					
						Eligible for the Paid Time Off benefits offered to all full-time officers.

				

		
			 
		

		 

		

			13

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