Document:

Geospatial Corporation 10-K

 

Exhibit 10.26

 

AGREEMENT
AND AMENDMENT

 

THIS AGREEMENT AND AMENDMENT
(“Agreement”) is dated as of January 27, 2016, by and between Geospatial Corporation, a Nevada corporation (the
“Company”), and David M. Truitt, an individual resident of Virginia (“Purchaser”).

 

RECITALS:

 

WHEREAS, the Company and
Purchaser are parties to a Note and Warrant Purchase Agreement dated as of April 2, 2015 (the “Purchase Agreement”),
pursuant to which the Company issued and sold to Purchaser a Secured Promissory Note dated April 2, 2015 in the principal amount
of $1,000,000 (the “Existing Note”) and a Common Stock Purchase Warrant dated April 2, 2015 (the “Existing
Warrant”) representing the right to purchase 2,000,000 shares of the Company’s common stock, par value $.001 per
share (“Common Stock”); and

 

WHEREAS, the Existing Note
is 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 and
Purchaser desire to amend the Existing Note to extend the maturity date thereof, and in connection therewith Purchaser desires
to make an additional loan to the Company in the amount of $250,000.00 and the Company desires to issue to Purchaser a warrant
to purchase an additional 25,000,000 shares of Common Stock.

 

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

 

1.           Amendment to Existing Note.

 

(a)       Section 2.1 of the Existing Note is hereby
amended in its entirety to read as follows:

 

2.1      Maturity Date.
   This Note will automatically mature and all unpaid principal and accrued and unpaid interest will be due and payable on the earlier
of (a) July 31, 2016 (the “Maturity Date”), or (b) the occurrence of an Event of Default (as defined in Section
5).

 

(b)      Subsection (a) of
Section 4.1 of the Existing Note is hereby amended in its entirety to read as follows:

 

(a)      the
non-payment of any principal, interest or other amounts due under the Note or under the Secured Promissory Note of the Company
dated January 27, 2016 in the principal amount of $250,000.00 issued to the Holder, within ten (10) calendar days after when due;

 

    	 

    	 

    

  

2.           Waiver of Event
of Default.   Any Event of Default (as defined in the Existing Note) resulting from the Company’s prior non-payment of
amounts due under the Existing Note is hereby waived by Purchaser. The Note shall not accrue interest at the higher rate provided
for under Section 4.2 of the Note during the period from the date of such Event of Default to the date hereof.

 

3.           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 $250,000.00 in the form attached hereto as Exhibit A (the
“Note”) and a Warrant to purchase 25,000,000 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 $250,000.00, 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.

 

4.           Security.
  Both the Existing Note 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.

 

5.           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.

 

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(c)      Capitalization.
Immediately prior to giving effect to the transactions contemplated by this Agreement, the authorized capital stock of the Company
consists of (i) 350,000,000 shares of Common Stock, of which 141,616,264 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 12,922,648 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.

 

(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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6.          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.

 

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(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.

 

(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.

 

7.           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.

 

8.           Registration Rights.

 

(a)      Definitions.
  As used in this Section 8 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 8, 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.

 

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(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 8(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.

 

(i)        Right to Terminate
Registration.   The Company shall have the right to terminate or withdraw any registration initiated by it under this Section
8(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
8(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 8(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.

 

9.          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.

 

10.         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.

 

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11.         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.

 

(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.

 

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(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.

 

(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 4:
	 	 
	 	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

 

	$250,000.00	  Issue Date: January 26, 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 TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000.00) together with any and all interest accrued but unpaid thereon.
This Note is issued pursuant to that certain Agreement and Amendment dated as of January 26, 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”).

 

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) July 26, 2016; (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);

 

(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.

 

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.

 

5.3         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.

 

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.

 

    	 

    	 

    

  

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

 

    	 

    	 

    

 

EXHIBIT B

 

FORM OF WARRANT

 

    	 

    	 

    

 

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

 

Warrant Issue Date: January 26, 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, TWENTY FIVE MILLION (25,000,000) shares of the Company’s common stock, par value
$.001 per share (“Common Stock” or “Warrant Shares”) at a price of $0.015 per share (the
“Exercise Price”). This Warrant is issued pursuant to that certain Agreement and Amendment dated as of January
26, 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.

 

(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.

 

    	 

    	 

    

 

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.

 

(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.

 

    	 

    	 

    

 

(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.

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

(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.

 

(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.

 

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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 OfficerGeospatial Corporation 10-K

 

Exhibit 10.27

 

SETTLEMENT AGREEMENT, GENERAL RELEASE
AND WAIVER OF CLAIMS

 

This SETTLEMENT
AGREEMENT, GENERAL RELEASE AND WAIVER OF CLAIMS (the “Agreement”) is entered into this 24th day of February,
2016 (“Effective Date”), by and between EDWARD R. CAMP, JR (“Camp”), SELECT ANALYTICS LLC (“Select
Analytics”), and GEOSPATIAL CORPORATION (“Geospatial”). Camp, Select Analytics, and Geospatial are referred to
collectively herein as the “Parties.”

 

WHEREAS, the Parties
entered into an Asset Purchase Agreement dated September 17, 2014 (the “Asset Purchase Agreement”) whereby Geospatial
was to acquire certain assets of Camp and Select Analytics;

 

WHEREAS, in conjunction
with the Asset Purchase Agreement, Geospatial and Camp executed an Employment and Noncompetition Agreement dated September 17,
2014 (the “Employment Agreement”);

 

WHEREAS, closing
on the Asset Purchase Agreement never occurred;

 

WHEREAS, a dispute
has arisen regarding the duties and obligations of the Parties pursuant to the Asset Purchase Agreement and the Employment Agreement;

 

WHEREAS, the Parties
deny liability to any other party;

 

WHEREAS, the Parties
have reached an amicable resolution of the dispute; and

 

WHEREAS, Geospatial,
on one hand, and Camp and Select Analytics, on the other hand, are desirous of committing the terms of the amicable resolution
to writing and terminating their association under the terms contained herein.

 

NOW, THEREFORE,
all Parties, having carefully reviewed this matter and this Agreement, and having had sufficient time and opportunity to consult
with legal counsel, and desiring to be legally bound hereby, agree as follows:

 

    

     

    

 

1.         PAYMENT:  
In consideration of the general release and waiver of claims set forth in Paragraph 3 below and the mutual covenants and consideration
hereinafter provided, Geospatial shall (i) make a one-time payment to Camp in the amount of Five Thousand Dollars ($5,000.00) to
be paid on or before February 22, 2016 and (ii) make payments to Camp in the amount of Two Thousand Five Hundred Dollars ($2,500.00)
to be paid by the 15th of each month, for ten (10) months commencing on March 15, 2016 through December 15, 2016. Geospatial
shall remit the payments directly to Camp. The payments shall have applicable taxes withheld and Geospatial shall issue an IRS
Form W-2 to Camp for the payments made herein.

 

2.         HEALTH
INSURANCE:   In consideration of the general release and waiver of claims set forth in Paragraph 3 below and the mutual covenants
and consideration hereinafter provided, Geospatial shall continue Camp’s current health insurance coverage through December
31, 2016 at Geospatial’s sole expense.

  

3.         GENERAL
RELEASE AND WAIVER OF CLAIMS:   Camp and Select Analytics, in consideration of the promises and covenants contained in this Agreement,
without limitation the payments made in Paragraph 2 above and the continuation of health insurance coverage as set forth in Paragraph
3 above, the sufficiency of which is acknowledged by Camp and Select Analytics, do hereby forever, fully and unconditionally release,
remise, acquit and discharge Geospatial, Geospatial’s affiliates and related companies, including but not limited to Geospatial
Mapping Systems, Inc., and their directors, officers, employees, contractors, agents, representatives, parents, subsidiaries, predecessors,
and successors, both presently known and unknown, from any and all suits, actions, causes of action, demands, judgments, rights,
claims, loss, damage, interest, attorney fees, costs and expenses and/or other relief of whatsoever kind or nature which Camp and/or
Select Analytics have from the beginning of time to the present (collectively, the “Claims”). Geospatial does hereby
forever, fully and unconditionally release, remise, acquit and discharge Camp, Select Analytics and its directors, officers, employees,
contractors, agents, representatives, parents, subsidiaries, predecessors, and successors, both presently known and unknown, from
all Claims. This General Release and Waiver of Claims shall include, without limitation, any and all Claims relating to or arising
from the Asset Purchase Agreement, the Employment Contract, Camp’s hiring, employment, association, termination or separation
from Geospatial, including without limitation any claims for: (i) breach of contract (whether written or oral, express or implied);
(ii) violations of public policy; (iii) negligence; (iv) fraud; (v) intentional or negligent misrepresentation; (vi) wrongful discharge
or termination; (vii) estoppel; (viii) impairment of economic opportunity or loss of business opportunity; (ix) interference with
contractual relations; (x) intentional infliction of emotional distress; (xi) defamation; (xii) violations of the Employment Retirement
Income Security Act of 1974, as amended; (xiii) violations of the Consolidated Omnibus Budget Reconciliation Act; (xiv) employment
discrimination, including without limitation, violations of Title VII of the Civil Rights Act of 1964, as amended; the Age Discrimination
in Employment Act of 1967, as amended by the Older Workers Benefit Protection Act; the Americans with Disabilities Act; the Pennsylvania
Human Relations Act; (xv) violations of the Family Medical Leave Act; (xvi) retaliation; (xvii) workers’ compensation benefits;
(xviii) unlawful employment practices and/or policies; (xix) breach of the terms and conditions of employment; (xx) wage, salary
and bonuses; (xxi) employee benefits, including without limitation, life insurance, disability insurance, and/or profit-sharing;
(xxii) vacation or leave; (xxiii) pension benefits, retirement benefits, and/or profit sharing; (xxiv) reimbursement of expenses
and (xxv) violations of any local, state or federal ordinances, statutes or common law.

 

    	-2-

    	 

    

 

4.         NO OTHER
ACTIONS:   Camp and Select Analytics represent and warrant that neither they nor anyone acting on their behalf have filed or
initiated any complaints, charges, claims or proceedings of any kind against Geospatial and/or its officers and/or directors in
any federal, state or local court, administrative agency, or other tribunal or forum, and that they will not hereafter commence,
or authorize anyone to commence on their behalf, any action or proceeding against Geospatial and/or its officers and/or directors
in any court, administrative agency, or other tribunal or forum concerning any of the Claims, except any action that may be necessary
to enforce any of Camp’s or Select Analytics’ rights under this Agreement. If any agency, court or third party should
assert against Geospatial and/or its officers and/or directors, on Camp’s and/or Select Analytics’ behalf, any Claim
released herein, Camp and/or Select Analytics shall take all steps necessary to withdraw or dismiss such Claim. In the event that
such Claim is not withdrawn or dismissed, and a settlement or judgment is reached or entered as to such Claim, Camp and/or Select
Analytics shall designate Geospatial as the recipient of any monies to which they are entitled by virtue of such settlement or
judgment or, if that is not possible, Camp and/or Select Analytics shall pay to Geospatial the amount received from such settlement
or judgment within seventy-two (72) hours of receiving such monies.

 

5.         COOPERATION:
  Camp and/or Select Analytics shall, upon request, cooperate with Geospatial in the defense of any Claim currently pending or hereinafter
pursued against Geospatial that arises out of or relates to the Asset Purchase Agreement, the Employment Contract, Camp’s
hiring, employment, association, termination or separation from Geospatial. Camp and/or Select Analytics shall not voluntarily
cooperate with or provide assistance to any such claim against Geospatial and/or its officers and/or directors, whether pending
or otherwise. In the case of legal proceedings, Camp and/or Select Analytics shall notify Geospatial in writing of any subpoena
or other similar notice to give testimony or provide documentation within two (2) business days of receipt, such that Geospatial
may have an opportunity to seek and obtain, among other things, an appropriate protective order or seek to intervene in the matter.

 

6.         NON-DISPARAGEMENT:
  Camp and Select Analytics agree to refrain from making any disparaging, negative or uncomplimentary remarks or statements, whether
public or private, about Geospatial, its officers, directors and employees. Geospatial agrees to refrain from making any disparaging,
negative or uncomplimentary remarks or statements, whether public or private, about Camp and Select Analytics.

 

7.         ENTIRE
AGREEMENT:   The Parties understand and agree that the terms contained in this Agreement is the entire understanding among the
Parties relative to its subject matter, and there are no written or oral understanding, promises, agreements, statements or representations
among the Parties directly or indirectly related to this Agreement that are not incorporated herein.

 

8.         CONFIDENTIALITY:
  The Parties agree that the fact of this Agreement and its terms and conditions, including the consideration provided in Paragraph
1 and Paragraph 2 above, shall be strictly confidential and shall not be disclosed to any person, natural or otherwise, other than:
(i) the Parties; (ii) the Parties’ attorneys, accountants and insurers; (iii) Geospatial’s senior management; (iv)
Camp’s spouse; and (iv) as required by subpoena or other legal proceedings, government regulation, or generally-accepted
accounting principles. The Parties shall be liable for any subsequent disclosure by any person whom they disclose the facts or
terms of this Agreement, as permitted herein. Notwithstanding the foregoing, Camp may disclose to potential employers, investors,
business partners and business counter-parties that Camp was a party to an Employment Agreement and Asset Purchase Agreement with
Geospatial that commenced September 17, 2014, and terminated amicably on the Effective Date. Camp may not make any other comments
or disclose that the within Agreement was entered into, or disclose the terms and conditions of the within Agreement.

 

    	-3-

    	 

    

 

9.         ASSET PURCHASE
AGREEMENT AND EMPLOYMENT CONTRACT:   The Parties understand and agree that this Agreement shall replace and supersede the Asset
Purchase Agreement and the Employment Contract. The Parties are released from any and all obligations, commitments, covenants,
and restrictions pursuant to the Asset Purchase Agreement and the Employment Agreement.

 

10.       CUSTOMER
LISTS:   Geospatial has or, upon execution of the Agreement, will destroy any and all customer lists provided by Camp and/or
Select Analytics, and any copies and/or reproductions thereof.

 

11.       REAPPLICATION
FOR EMPLOYMENT:   Camp agrees that he will not reapply for employment with Geospatial, or any current or future affiliate, parent
or subsidiary, in any capacity. Camp further agrees that if he reapplies for employment with Geospatial, Geospatial is permitted
to deny the application, and such denial shall not constitute retaliation under any federal, state or local law. Geospatial shall
respond to requests for a reference for Camp by disclosing only that Camp was a party to an Employment Agreement and Asset Purchase
Agreement with Geospatial that commenced on September 17, 2014, and terminated amicably on the Effective Date. Geospatial may not
make any other comments or disclose that the within Agreement was entered into, or disclose the terms and conditions of the within
Agreement. Geospatial’s refusal to provide information beyond the within shall not subject Geospatial to liability, including
without limitation liability for defamation and/or retaliation under any federal, state or local law. Camp further agrees that
the refusal to provide information beyond the within in response to a request for a reference shall not violate Paragraph 6 of
this Agreement.

 

12.       FEES,
COSTS AND EXPENSES:   It is understood and agreed by the Parties hereto that each shall bear their own attorney fees, costs and
expenses which arose from the litigation of the Lawsuit.

 

13.       CHOICE
OF LAW AND FORUM:   This Agreement, and the terms and conditions contained herein, shall be governed by the internal laws of
the Commonwealth of Pennsylvania without regard to its rules regarding choice of law. Any lawsuit to enforce the terms of this
Agreement shall be brought exclusively in the state or federal court whose jurisdiction includes Butler County, Pennsylvania.

 

14.       COUNTERPARTS:
  This Agreement may be executed in any number of counterparts each of which, when so executed, shall be deemed an original, but
all such counterparts together shall constitute one and the same instrument.

 

15.       INTERPRETATION:
  The Parties have had the opportunity to revise, comment upon and redraft this Agreement. Accordingly, it is agreed that no rule
of construction shall apply against any party or in favor of any party. This Agreement shall be construed as if the Parties jointly
prepared this Agreement and any uncertainty or ambiguity shall not be interpreted against any party and in favor of another party.

 

16.       PRESERVATION
OF CLAIMS AND DEFENSES:   The Parties acknowledge and agree that if the payments set forth in Paragraph 1 above are not made
by Geospatial, this Agreement shall become null and void and the Parties may assert any and all claims and/or defenses, including
but not limited to those relating to or arising from the Asset Purchase Agreement and the Employment Contract, as if this Agreement
had never been executed. However, the Parties acknowledge and agree that Geospatial may claim as set-off any payments made pursuant
to this Agreement.

 

    	-4-

    	 

    

 

17.       SPECIAL
PROVISIONS:   Camp acknowledges that he has been hereby advised in writing to consult with an attorney and has had the opportunity
to take at least twenty-one (21) days in which to review and consider this Agreement and to consult with legal counsel with respect
thereto. Camp acknowledges READING AND FULLY UNDERSTANDING THE TERMS OF THIS DOCUMENT, and has entered into this Agreement voluntarily
and of his own free will. Camp acknowledges his right to revoke this Agreement within seven (7) days following the execution of
this Agreement by giving written notice thereof to counsel for Geospatial. In the event of such revocation, this Agreement shall
become null and void and no party hereto shall have any rights or obligations hereunder.

 

[signature page follows]

  

    	-5-

    	 

    

  

IN WITNESS WHEREOF,
the undersigned hereunto set their hands and seals hereto:

 

	DATE:	 	 
	 	 	 
	2/18/2016	 	/s/ Edward
R. Camp, Jr.
	 	 	Edward R. Camp, Jr.
	 	 	 
	 	 	SELECT ANALYTICS LLC
	 	 	 
	2/18/2016	 	/s/ Edward R.
Camp, Jr. (Owner)
	 	 	Edward R. Camp, Jr., [TITLE]
	 	 	 
	 	 	GEOSPATIAL CORPORATION
	 	 	 
	2/24/2016	 	/s/ Mark Smith
	 	 	Mark Smith, Chief Executive Officer

 

-6-

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