Document:

MASSROOTS, INC.

SUBSCRIPTION AGREEMENT
FOR THE PURCHASE OF SECURITIES

 

MASSROOTS, INC., a Delaware corporation (the “Company”), is
offering (this “Offering”) for sale to “accredited investors” as the term is defined under
Regulation D promulgated under the Securities Act of 1933, as amended (the “Act”), shares of its Common Stock
(“Common Stock” or the “Securities”) at $0.75 per share.

 

The minimum investment
for any one investor is 333,334 shares of Common Stock ($250,000.50) upon the terms and conditions described in this Subscription
Agreement. The Company may, in its sole discretion, accept subscriptions for less than the minimum investment.

 

Subscription Procedures

 

(a)The undersigned
hereby subscribes to purchase __________________ shares of Common Stock. The undersigned agrees to pay an aggregate of $__________________
as the subscription amount for the Securities being purchased hereunder (the “Subscription Amount”).

 

(b)To subscribe,
the undersigned must:

 

(i)complete
and sign this Subscription Agreement; and

 

(ii) complete and
sign the accompanying Confidential Prospective Purchaser Questionnare (“Questionnaire”, together with the Subscription
Agreement referred to as the “Subscription Documents”);

 

(iii) return the completed and signed Subscription Documents
on behalf of the Company at the following address:

 

MassRoots, Inc. 

1624 Market Street, Suite 201, 

Denver, CO 80202

 

 (iv) Deliver a check payable to “MassRoots, Inc.” to the address above for an amount equal to the aggregate amount of Common Stock subscribed for in this offering.

 

Or wire the funds to:

 

Account Name:

Routing Number:

Account Number:

Bank Name:

Bank Address:

 

(c)Unless terminated
earlier, by the Company, in its sole discretion, the Offering is will expire on June 30, 2015 unless extended by us, in our sole
discretion, for a period of up to an additional 90 days (the “Offering Period”).

 

(d)The Company
will hold a closing on and issue the Securities upon the receipt and acceptance of the Subscription Documents and the Subcription
Amount (each a “Closing”). The date of each such Closing is referred to herein as the Closing Date.

 

    	 	1	 

    	 

    

(e)All
subscription proceeds will be deposited into the Company’s bank account as provided herein. Upon each Closing, the funds,
subject to the payment of the expenses and fees incurred in connection with this Offering, will be immediately available to the
Company. In the event that an investor’s subscription is rejected by the Company, or this Offering is terminated for any
reason without a closing, subscription proceeds will be promptly refunded without interest thereon or deduction therefrom.

 

Prospective
Investors should retain their own professional advisors to review and evaluate the economic, tax, and other consequences of an
investment in the Company.

 

THE SECURITIES OFFERED HEREBY,
HAVE NOT BEEN FILED OR REGISTERED WITH OR APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”), NOR
HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS. NO STATE SECURITIES LAW ADMINISTRATOR HAS PASSED
ON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR THE ADEQUACY OF THE OFFERING MATERIALS. ANY REPRESENTATION TO THE
CONTRARY IS UNLAWFUL.

 

IT IS INTENDED THAT THE SECURITIES
OFFERED HEREBY WILL BE MADE AVAILABLE TO ACCREDITED INVESTORS, AS DEFINED IN REGULATION D AND RULE 501 PROMULGATED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “1933 ACT”) AND UP TO THIRTY-FIVE NON-ACCREDITED INVESTORS. THE SECURITIES OFFERED HEREBY
ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND APPLICABLE STATE SECURITIES
LAWS FOR NONPUBLIC OFFERINGS. SUCH EXEMPTIONS LIMIT THE NUMBER AND TYPES OF INVESTORS TO WHICH THE OFFERING WILL BE MADE AND RESTRICT
SUBSEQUENT TRANSFERS OF THE INTERESTS.

 

THE SECURITIES OFFERED HEREBY
SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN AFFORD TO SUSTAIN A LOSS OF THEIR ENTIRE INVESTMENT. INVESTORS WILL BE REQUIRED TO
REPRESENT THAT THEY ARE FAMILIAR WITH AND UNDERSTAND THE TERMS OF THIS OFFERING.

 

NO SECURITIES MAY BE RESOLD
OR OTHERWISE DISPOSED OF BY AN INVESTOR UNLESS, IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, REGISTRATION UNDER THE
APPLICABLE FEDERAL OR STATE

SECURITIES LAWS IS NOT REQUIRED
OR COMPLIANCE IS MADE WITH SUCH REGISTRATION REQUIREMENTS.

 

THE OFFEREE, BY ACCEPTING
DELIVERY OF THE OFFERING MATERIALS (AS DEFINED BELOW), AGREES TO RETURN THE OFFERING MATERIALS AND ALL ACCOMPANYING OR RELATED
DOCUMENTS TO THE COMPANY. UPON REQUEST IF THE OFFEREE DOES NOT AGREE TO PURCHASE ANY OF THE SECURITIES OFFERED HEREBY.

 

ANY OFFERING MATERIALS (AS
DEFINED BELOW) SUBMITTED IN CONNECTION WITH THE PRIVATE PLACEMENT OF THE SECURITIES DO NOT CONSTITUTE AN OFFER OR SOLICITATION
BY ANYONE IN ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED. ANY REPRODUCTION OR DISTRIBUTION OF ANY
OFFERING MATERIALS (AS DEFINED BELOW) IN WHOLE OR IN PART, OR THE DIVULGENCE OF ANY OF THEIR CONTENTS, WITHOUT THE PRIOR WRITTEN
CONSENT OF THE COMPANY, IS PROHIBITED. ANY PERSON ACTING CONTRARY TO THE FOREGOING RESTRICTIONS MAY PLACE HIM/HERSELF AND THE
COMPANY IN VIOLATION OF FEDERAL OR STATE SECURITIES LAWS.

    	 	2	 

    	 

    

NASAA UNIFORM LEGEND

 

IN MAKING AN INVESTMENT DECISION
INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED.
THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE,
THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT OR THE OFFERING MATERIALS
(AS DEFINED BELOW). ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE 1933 ACT, AND THE APPLICABLE STATE
SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR
THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

The undersigned
acknowledges that the Securities will not be registered under the 1933 Act, or the securities laws of any State, that absent an
exemption from registration contained in those laws, the issuance and sale of such Securities would require registration, and
that the Company's reliance upon such exemption is based upon the undersigned's representations, warranties, and agreements contained
in the Offering Materials (as defined below).

 

1.The
undersigned represents, warrants, and agrees as follows:

 

(a)The undersigned agrees
that this Subscription Agreement is and shall be irrevocable.

 

(b)The undersigned has carefully read this Subscription Agreement,
Confidential Private Offering Memorandum, Offering Term Sheet, Annual Report on Form 10-K for the Year Ended December 31,
2014 and Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2015, and the Confidential Prospective Purchaser
Questionnaire (collectively the “Offering Materials”), all of which the undersigned acknowledges having
received. The undersigned has been given the opportunity to ask questions of, and receive answers from the Company concerning
the terms and conditions of this Offering and the Offering Materials and to obtain such additional written information, to
the extent the Company possesses such information or can acquire it without unreasonable effort or expense, necessary to
verify the accuracy of the same as the undersigned desires in order to evaluate the investment. The undersigned further
acknowledges that the undersigned fully understands the Offering Materials, and the undersigned has had the opportunity to
discuss any questions regarding any of the Offering Materials with the undersigned’s counsel or other advisor.
Notwithstanding the foregoing, the only information upon which the undersigned has relied is that set forth in the Offering
Materials and the undersigned’s own independent investigation. The undersigned acknowledges that the undersigned has
received no representations or warranties from the Company or its employees, director, or agents in making this investment
decision other than as set forth in the Offering Materials.

 

(c)The undersigned is
aware that the purchase of the Securities is a speculative investment involving a high degree of risk and that there is no guarantee
that the undersigned will realize any gain from this investment, and that the undersigned could lose the total amount of the undersigned's
investment and can bear to afford the risk of losing the entire investment.

 

(d)The undersigned understands
that no federal or state agency has made any finding or determination regarding the fairness of this Offering of the Securities
for investment, or any recommendation or endorsement of this Offering of the Securities.

 

(e) The undersigned is
an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the 1933 Act. The undersigned
has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the
purchase of the Securities. The undersigned is not registered as a broker or dealer under Section 15(a) of the 1934 Act, affiliated
with any broker or dealer registered under Section 15(a) of the Securities Exchange Act of 1934, as amended, or a member of the
Financial Industry Regulatory Authority.

 

    	 	3	 

    	 

    

(f)Each of
this Agreement and the Offering Materials have been duly and validly authorized, executed and delivered on behalf of the undersigned
and is a valid and binding agreement of the undersigned enforceable against the undersigned in accordance with their terms, subject
as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.
The undersigned has the requisite corporate power and authority to enter into and perform its obligations under this Agreement
and the Offering Materials and each other agreement entered into by the parties hereto in connection with the transactions contemplated
by this Agreement.

 

(g)The execution,
delivery and performance of this Agreement and the Offering Materials by the undersigned and the consummation by the undersigned
of the transactions contemplated hereby and thereby will not (i) result in a violation of the certificate of incorporation, by-laws
or other documents of organization of the undersigned, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give others any rights of termination, amendment, acceleration or cancellation
of, any agreement, indenture or instrument to which the undersigned is bound, or (iii) result in a violation of any law, rule,
regulation or decree applicable to the undersigned.

 

(h)The undersigned understands that the Securities must
be held indefinitely unless and until such Securities is registered under the 1933 Act or an exemption from registration is
available. As such, the undersigned is aware that it may not be possible for the undersigned to liquidate his or her
investment in case of emergency, if at all. The undersigned is aware that any person to whom the undersigned may subsequently
wish to sell the Securities (if the Securities is not then registered) may have to satisfy standards of suitability at least
as stringent as those set forth herein and that, in addition, the prior written approval of any such sale by certain state
securities regulatory authorities may be required. The undersigned has been advised or is aware of the provisions of Rule 144
promulgated under the 1933 Act.

 

(i)The undersigned understands that
the Securities are being offered and sold in reliance on a transactional exemption from the registration requirements of Federal
and state securities laws and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understandings of the undersigned set forth herein in order to determine the applicability of such exemptions
and the suitability of the undersigned to acquire the Securities.

 

(j) The undersigned is
purchasing the Securities for the undersigned's own account, with the intention of holding the Securities, with no present intention
of dividing or allowing others to participate in this investment or of reselling or otherwise participating, directly or indirectly,
in a distribution of the Securities, and shall not make any sale, transfer, or pledge thereof without registration under the Act
and any applicable securities laws of any state or unless an exemption from registration is available under those laws.

 

(k)The undersigned represents
that the undersigned, if an individual, has adequate means of providing for his or her current needs and personal and family contingencies
and has no need for liquidity in this investment in the Securities. The undersigned has no reason to anticipate any material change
in his or her personal financial condition for the foreseeable future.

 

(l)The undersigned is
financially able to bear the economic risk of this investment, including the ability to hold the Securities indefinitely or to
afford a complete loss of the undersigned’s investment in the Securities.

 

    	 	4	 

    	 

    

(m)The undersigned represents that the undersigned's overall
commitment to this investment is not disproportionate to the undersigned's net worth, and the undersigned's investment in the
Securities will not cause such overall commitment to become excessive. The undersigned understands that the statutory basis on
which the Securities are being sold to the undersigned and others would not be available if the undersigned's present intention
were to hold the Securities for a fixed period or until the occurrence of a certain event. The undersigned realizes that in the
view of the Commission, a purchase now with a present intent to resell by reason of a foreseeable specific contingency or any
anticipated change in the market value, or in the condition of the Company, or that of the industry in which the business of the
Company is engaged or in connection with a contemplated liquidation, or settlement of any loan obtained by the undersigned for
the acquisition of the Securities, and for which such Securities may be pledged as security or as donations to religious or charitable
institutions for the purpose of securing a deduction on an income tax return, would, in fact, represent a purchase with an intent
inconsistent with the undersigned's representations to the Company and the Commission would then regard such sale as a sale for
which the exemption from registration is not available. The undersigned will not pledge, transfer, or assign this Subscription
Agreement.

 

(m)The undersigned
represents that the funds provided for this investment are either separate property of the undersigned, community property
over which the undersigned has the right of control, or are otherwise funds as to which the undersigned has the sole right of
management.

 

(n)FOR
PARTNERSHIPS, CORPORATIONS, TRUSTS, OR OTHER ENTITIES ONLY: If the undersigned is a partnership, corporation, trust, or other
entity, (i) the undersigned has enclosed with this Subscription Agreement appropriate evidence of the authority of the individual
executing this Subscription Agreement to act on its behalf (e.g., if a trust, a certified copy of the trust agreement; if a corporation,
a certified corporate resolution authorizing the signature and a certified copy of the articles of incorporation; or if a partnership,
a certified copy of the partnership agreement), (ii) the undersigned represents and warrants that it was not organized or reorganized
for the specific purpose of acquiring the Securities, (iii) the undersigned has the full power and authority to execute this Subscription
Agreement on behalf of such entity and to make the representations and warranties made herein on its behalf, and (iv) this investment
in the Company has been affirmatively authorized, if required, by the governing board of such entity and is not prohibited by
the governing documents of the entity.

 

(o)The address shown
under the undersigned's signature at the end of this Subscription Agreement is the undersigned's principal residence if he or
she is an individual, or its principal business address if a corporation or other entity.

 

(p)The undersigned has
such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment
in the Securities.

 

(q)The undersigned acknowledges
that the certificates for the Securities which the undersigned will receive will contain a legend substantially as follows:

 

“THE SECURITIES
WHICH ARE REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
TRANSFERRED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNTIL A REGISTRATION STATEMENT WITH RESPECT THERETO IS DECLARED EFFECTIVE UNDER
SUCH ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE COMPANY THAT AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
SUCH ACT IS AVAILABLE.”

 

The undersigned
further acknowledges that (i) any necessary stop transfer orders will be placed upon the Company’s Common Stock, in accordance
with the Act, and (ii) the Company is under no obligation to aid the undersigned in obtaining any exemption from the registration
requirements.

 

2.The undersigned
expressly acknowledges and agrees that the Company is relying upon the undersigned's representations contained in the Offering
Materials.

 

    	 	5	 

    	 

    

3.The undersigned subscriber acknowledges that the undersigned understands the
meaning and legal consequences of the representations and warranties which are contained herein and hereby agrees to
indemnify, save and hold harmless the Company and its officers, directors and counsel, from and against any and all claims or
actions arising out of a breach of any representation, warranty or acknowledgment of the undersigned contained in any of the
Offering Materials. Such indemnification shall be deemed to include not only the specific liabilities or obligations with
respect to which such indemnity is provided, but also all reasonable costs, expenses, counsel fees and expenses of settlement
relating thereto, whether or not any such liability or obligation shall have been reduced to judgment. In addition, the
undersigned's representations, warranties, and indemnification contained herein shall survive the undersigned's purchase of
the Securities hereunder. The undersigned specifically acknowledges that he has reviewed the risks set forth in the Offering
Materials, as well as the financial statements included therein.

 

4.The Company
represents, warrants, and agrees as follows:

 

(a) The
Company represents that it has been duly and validly incorporated and is validly existing and in good standing as a
corporation under the laws of the State of Delaware, and has the requisite corporate power and authorization to own its
properties and to carry on its business as now being conducted.

 

(b) The Company has the requisite corporate power and authority to enter into and perform its obligations under this Subscription
Agreement and the other Offering Materials, and to issue the Securities in accordance with the terms hereof and thereof, (ii)
the execution and delivery of the Subscription Agreement and the other Offering Materials by the Company and the consummation
by it of the transactions contemplated hereby, have been duly and validly authorized by the Company's Board of Directors and no
further consent or authorization is required by the Company, its Board of Directors, or its shareholders, (iii) the Subscription
Agreement and the other Offering Materials have been duly and validly executed and delivered by the Company, and (iv) the Subscription
Agreement and the other Offering Materials constitute the valid and binding obligations of the Company enforceable against the
Company in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of creditors' rights and remedies.

 

(c) The
Company further represents that the Securities offered hereby are being offered pursuant to an exemption from the
registration requirements of the 1933 Act and applicable state securities laws for nonpublic offerings.

 

(d) The
execution, delivery and performance of this Subscription Agreement and the other Offering Materials by the Company and
the consummation by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the
Articles of Incorporation, any rights of any outstanding series of preferred stock of the Company or the Bylaws or (ii)
conflict with, or constitute a material default (or an event which with notice or lapse of time or both would become a
material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any
material agreement, contract, indenture mortgage, indebtedness or instrument to which the Company is a party, or result in a
violation of any law, rule, regulation, order, judgment or decree, including United States federal and state securities laws
and regulations or by which any property or asset of the Company or any of its Subsidiaries is bound or affected.

 

5.The undersigned
agrees and acknowledges that the Company has the right to utilize the services of a placement agent and if utilized, may receive
a commission consisting of cash and/or shares of Common Stock, at a rate that is compatible with industry standards, from the
Securities sold by such placement agent.

 

6.Except as
otherwise specifically provided for hereunder, no party shall be deemed to have waived any of his, her, or its rights hereunder
or under any other agreement, instrument, or papers signed by any of them with respect to the subject matter hereof unless such
waiver is in writing and signed by the party waiving said right. Except as otherwise specifically provided for hereunder, no delay
or omission by any party in exercising any right with respect to the subject matter hereof shall operate as a waiver of such right
or of any such other right. A waiver on any one occasion with respect to the subject matter hereof shall not be construed as a
bar to, or waiver of, any right or remedy on any future occasion. All rights and remedies with respect to the subject matter hereof,
whether evidenced hereby or by any other agreement, instrument, or paper, will be cumulative, and may be exercised separately
or concurrently.

 

    	 	6	 

    	 

    

7.The
parties have not made any representations or warranties with respect to the subject matter hereof not set forth herein, and this
Subscription Agreement, together with any instruments executed simultaneously herewith, constitutes the entire agreement between
them with respect to the subject matter hereof. All understandings and agreements heretofore existing between the parties with
respect to the subject matter hereof are merged in this Subscription Agreement and any such instrument, which alone fully and
completely express their agreement.

 

8.This
Subscription Agreement may not be changed, modified, extended, terminated, or discharged orally, but only by an agreement in writing,
which is signed by all of the parties to this Subscription Agreement.

 

9.The
parties agree to execute any and all such other and further instruments and documents, and to take any and all such further actions
reasonably required to effectuate this Subscription Agreement and the intent and purposes hereof.

 

10.If
any provision or any portion of any provision of this Subscription Agreement or the application of any such provision or any portion
thereof to any person or circumstance, shall be held invalid or unenforceable, the remaining portion of such provision and the
remaining portion of such provision as is held invalid or unenforceable to persons or circumstances other than those as to which
it is held invalid or unenforceable, shall not be affected thereby.

 

11.This
Subscription Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and the undersigned
hereby consents to the jurisdiction of the courts of the State of Colorado and/or the United States District Court for Colorado.

 

    	 	7	 

    	 

    

ALL SUBSCRIBERS MUST COMPLETE
A COPY OF THIS PAGE

__________________________

(Print Name of Subscriber)

 

IN WITNESS
WHEREOF, the undersigned has executed this Subscription Agreement on this ____ day of ____________, 2015.

 

Securities
Subscription Amount $___________

 

1.|__|Individual

 

2.|__|Joint Tenants
with Right of Survivorship

 

3.|__|Community Property

 

4.|__|Tenants in
Common

 

5.|__|Corporation/Partnership

 

6.|__|IRA of________________

 

7.|__|Trust

 

Date
Opened ___________

 

8.|__|As A Custodian For________________

 

Under the
Uniform Transfer to Minors Act of the

 

State of ___________

  

9.|__|Married with
Separate

 

Property

 

10.|__|Keogh of ____________

    	 	8	 

    	 

    

EXECUTION BY SUBSCRIBER WHO
IS A NATURAL PERSON

	 		 
	 	Exact Name in Which Title is to
be Held 	 
	 		 
	 	Signature	 
	 		 
	 	Name (Please Print)	 
	 		 
	 	Title of Person Executing Agreement	 
	 		 
	 	Address: Number and Street	 
	 		 
	 	City	State	Zip Code	 
	 		 
	 	Social Security Number	 
	 	 	 
	 	Accepted this ___ day of _______, 2015, on behalf of MASSROOTS,
INC.	 

 

	 	By:	
	 	Name:	 
	 	Title:	 

    	 	9	 

    	 

    

EXECUTION BY SUBSCRIBER
WHICH IS A CORPORATION

PARTNER, TRUST, ETC.

	 		 
	 	Exact Name in Which Title is to
be Held 	 
	 		 
	 	Signature	 
	 		 
	 	Name (Please Print)	 
	 		 
	 	Title of Person Executing Agreement	 
	 		 
	 	Address: Number and Street	 
	 		 
	 	City	State	Zip Code	 
	 		 
	 	Tax Identification Number	 
	 	 	 
	 	Accepted this ___ day of _______, 2015, on behalf of MASSROOTS,
INC.	 

 

 

	 	By:	
	 	Name:	 
	 	Title:	 

    	 	10Steven Urbach

        President

         
	
    Chardan Capital
Markets,
LLC17 State Street

                                                                      Suite 1600

                                                                      New York, NY 10004

                                                                      Tel: 646 465 9028

                                                                      Fax: 646 465 9091

 

 

June 9, 2015

MassRoots, Inc.

2247 Federal Blvd., 

Denver, CO 80202

  

Attention:Mr. Isaac Dietrich

 

Dear Isaac:

 

This letter will confirm our understanding
that the company known to us as MassRoots, Inc. (the “Company”) has engaged Chardan Capital Markets, LLC (“Chardan”,
“Advisor” or “Placement Agent”) to act as the Company’s non-exclusive placement agent and financial
advisor. The Company and Chardan are each a “Party” and collectively, the “Parties”.

 

Section 1.Scope of Engagement
and Services. In connection with this engagement, Chardan shall provide the following services (“Services”),
as appropriate:

 

	(a)		familiarize itself to the extent appropriate and feasible with the business, operations,
properties, financial condition and prospects of the Company in order to, among other things, analyze the potential contributions
of such business, operations and facilities to the Company’s future operating results, it being understood that Advisor
shall be entitled, in the course of such familiarization, to rely upon publicly available information and such other information
as may be supplied by the Company, without independent investigation;

	(b)		advise and assist the Company in negotiating the terms and conditions of any transaction;

	(c)		advise the Company on an appropriate investor relations program;

	(d)		introduce the Company to potential investors and/or business partners who are “accredited
investors”, as that term is defined under Rule 501 of the Securities Act of 1933, as amended (“Chardan Contacts”);

	(e)		at the Company’s request, assist the Company in preparing a memorandum, for
distribution to Chardan Contacts, lenders and/or other financial sources, describing the Company and its business, operations,
properties, financial condition and prospects, it being specifically agreed that (i) any such memorandum shall be based entirely
upon information supplied by the Company, which information the Company hereby warrants shall be accurate in all material respects;
(ii) the Company shall be solely responsible for the accuracy and completeness of such memorandum; and (iii) other than as contemplated
by this paragraph, such memorandum shall not be used, reproduced, disseminated, quoted or referred to at any time, in any manner
or for any purpose, except with the Company’s prior written consent. Chardan shall make offers and sales of the Company’s
securities in compliance with the provisions of Rule 506 of Regulation D and/or Section 4(2) of the Securities Act of 1933;

    	 	 	 

    	 

    
	(f)		arrange non-deal road shows;

	(g)		advise and assist management in preparing for presentations to investors, lenders
and/or other financial sources, including the development of the best strategy for demonstrating the experience of management
and the scope of such experience;

	(h)		perform such other financial advisory services as Chardan and the Company may from
time to time agree upon.

 

Chardan understands that the Company reserves the right to reject the subscription of any investor, including the Chardan Contacts, in whole or in part, in its sole and absolute discretion.

 

Section 2.Compensation.

 

	(a)		RESERVED

	(b)		In the event a financing is consummated during the Term with Chardan Contacts participating
(a “Transaction”), the Company will pay to Chardan an aggregate placement agent fee (the “Placement Fee”)
as stated below. All such fees shall be immediately paid by the Company to Chardan at the closing of the Transaction, however,
if such Transaction occurs through multiple closings, then pro rata portion of such fees shall be paid upon each closing:

	i.		For any capital raise, the Company shall pay to Chardan at the time of closing, (1)
an aggregate cash fee equal to eight percent (8.0%) of the aggregate sales price of the securities sold in the Transaction to
the Chardan Contacts only (excluding the exercise price of any warrants issued in the Transaction); and (2) an aggregate restricted
stock fee equal to eight percent (8.0%) of the aggregate number of shares of common stock sold in the Transaction to the Chardan
Contacts only (in the event a convertible security is issued then the number of shares of common stock that should be issued to
Chardan or The Special Equities Group, as the case may be, shall be calculated based upon the number of shares of common stock
that the convertible security can be converted into).

	ii.		For any capital raise where Chardan is not the introducing broker but just the executing
broker, the Company shall pay to Chardan or its designees, as the case may be, at the time of closing, an aggregate restricted
stock fee equal to four percent (4.0%) of the aggregate number of shares of common stock sold in the Transaction (in the event
a convertible security is issued then the number of shares of common stock that should be issued to Chardan or The Special Equities
Group, as the case may be, shall be calculated based upon the number of shares of common stock that the convertible security can
be converted into).

 

Section 3.Indemnification.
The Company agrees to indemnify Chardanin accordance with the provisions of Annex A hereto, which is incorporated
by reference and made a part hereof.

 

Section 4. Expenses;
Initial Retainer. The Company shall reimburse Chardan for all of its actual and reasonable out-of-pocket expenses, including
but not limited to reasonable and documented travel, legal fees and other expenses, incurred in connection with the financing,
whether or not the financing is completed (subject to the limitations set forth in the next sentence), subject to presentation
of appropriate documentation evidencing such out-of-pocket expenses. In the event the financing does not close for any reason,
the Company shall only be obligated to pay expenses of up to $2,500 in the aggregate to Chardan, including road show expenses,
subject to presentation of appropriate documentation evidencing such out-of-pocket expenses. In the event that a Transaction is
consummated, the Company shall only be obligated to pay expenses of up to $25,000 in the aggregate to Chardan. Chardan will not
bear any of the Company’s legal, accounting, printing or other expenses in connection with any transaction considered or
consummated hereby; provided, however, that Chardan agrees to get written approval from the Company prior to incurring any such
fees; further, provided, however, that such expenses shall not exceed $5,000. It also is understood that Chardan will not be responsible
for any fees or commissions payable to any finder or to any other financial or other advisor utilized or retained by the Company,
except that Chardan shall pay the fees and commissions of members of Chardan’s selling group in the Transaction (it being
understood by the parties that Chardan, and not the Company, shall be responsible for the payment of any fees, if any, due and
owing to any advisor it engages unless expressly agreed otherwise).

 

    	 	 	 

    	 

    

Section 5.Right
of First Refusal. The Company will grant Chardan a twelve (12) month right of first refusal to act as lead underwriter
or placement agent on any future capital raising transactions involving the Company’s securities in which the Company elects
to engage an investment banker or placement agent.

 

Section 6.Chardan’s and the Company’s Relationships
with Others. The Parties acknowledge and agree that Chardan is engaged on a non-exclusive basis and that the Company is
free to retain others to perform the same or similar services that are being provided by Chardan. Similarly, the Company acknowledges
that Chardan and its affiliates are in the business of providing investment banking, financial advisory and consulting services
to others and agrees that the provision of such services shall not constitute a breach hereof of any duty owed to the Company
by virtue of this Agreement. Nothing contained herein, other than Chardan’s obligations relating to the Company’s
Confidential Material as provided in Section 7 below, shall be construed to limit or restrict Chardan or its respective affiliates
in conducting such businesses with respect to others or in rendering such services to others. Chardan is duly registered with
the United States Securities and Exchange Commission (the “SEC”) under Section 15 of the Securities Exchange
Act of 1934, as amended, as a broker-dealer and is a member in good standing of the Financial Industry Regulatory Authority (“FINRA”)
and is registered in those states in which it is required to be so registered in order to perform its obligations under this Agreement. 

 

Section 7.Confidential
Information. In connection with the rendering of services hereunder, Chardan has been or will be furnished with certain
confidential information of the Company including, but not limited to, financial statements and information, cost and expense
data, scientific data, intellectual property, trade secrets, business strategies, marketing and customer data, and such other
information not generally available from public or published information sources. Such information shall be deemed “Confidential
Material”, shall be used solely in connection with the provision of services contemplated hereby, and shall not be disclosed
by Chardan without the prior written consent of the Company. In the event Chardan is required by applicable law or legal process
to disclose any of the Confidential Material, Chardan will deliver to the Company prompt notice of such requirement (by fax or
overnight courier promptly following Chardan’s knowledge or determination of such requirement) prior to such disclosure
so the Company may seek an appropriate protective order and/or waive compliance of this provision. If, in the absence of a protective
order (because the Company elected to not seek such an order or it was denied by a court of competent jurisdiction) or receipt
of written waiver, Chardan is nonetheless, in the written opinion of its counsel, compelled to disclose any Confidential Material,
Chardan may do so without liability hereunder.

 

Section 8.Limitation Upon the
Use of Advice and Services.

 

	(a)		No person or entity, other than the Company (including its directors, officers and
employees), shall be entitled to make use of, or rely upon any advice of Chardan to be given hereunder, and the Company shall
not transmit such advice to, or encourage or facilitate the use or reliance upon such advice by others without the prior written
consent of Chardan.

	(b)		The Company hereby acknowledges that Chardan, for services rendered as contemplated
by this Agreement, does not make any commitment whatsoever to make a market in any of the Company’s securities on any stock
exchange or in any electronic marketplace. Any decision by Chardan to make a market in any of the Company’s securities shall
be based solely on the independent judgment of Chardan’s management, employees, and agents.

	(c)		Use of Chardan’s name in annual reports or any other report of the Company or
releases by the Company requires the prior written approval of Chardan unless the Company is required by law to include Chardan’s
name in such annual reports, other report or release of the Company, in which event the Company shall furnish to Chardan copies
of such annual reports or other reports or releases using Chardan’s names in advance of publication by the Company.

 

    	 	 	 

    	 

    

Section 9.Information;
Cooperation. The Company will cooperate with and will furnish Chardan with all reasonable information and data concerning
the Company and the financing which Chardan deems appropriate and will provide Chardan with reasonable access to the Company’s
officers, directors, employees, independent accountants and legal counsel (provided that Chardan shall not communicate directly
with any such parties without the prior written or email authorization of the President, Chief Executive Officer, or Chief Financial
Officer of the Company). The Company represents that all information and any disclosure materials made available to Chardan for
distribution to investors will be complete and correct in all material respects and will not contain any untrue statement of material
fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of the circumstances
under which such statements are made. The Company further represents and warrants that to the extent any projections are furnished,
such projections will have been prepared in good faith and will be based upon assumptions, which, in light of the circumstances
under which they are made, are reasonable. Chardan shall not deliver to any prospective investors any information concerning the
Company, unless the Company has previously consented to the distribution of such information.

 

Section 10.Miscellaneous.

 

	(a)		Any notice or communication between the parties hereto shall be sufficiently given
if sent by certified or registered mail, postage prepaid, or faxed and confirmed if to the Company, addressed to it at: 2247 Federal
Blvd., Denver, CO 80202, or if to Chardan, addressed to them at: 150 East 58th Street, 28th Floor, New York,
NY 10155. Such notice or other communication shall be deemed to be given on the date of receipt.

	(b)		This Agreement embodies the entire agreement and understanding between the Company
and Chardan and supersedes any and all negotiations, prior discussions and preliminary and prior agreements and understandings,
including, but not limited to, that certain engagement letter between Chardan and the Company, dated on or about March __, 2015,
that Chardan may have had with the Company related to the subject matter hereof, and may be modified only by a written instrument
duly executed by each party. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and personal
representatives of each of the parties hereto. This Agreement has been duly authorized, executed and delivered by and on behalf
of the Company and Chardan.

	(c)		This Agreement shall be deemed to have been made and delivered in New York City and
shall be governed as to validity, interpretation, construction, effect and in all other respects by the internal laws of the State
of New York without regard to principles of conflicts of law thereof. Any and all disputes, controversies or claims arising out
of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be finally and exclusively resolved
by arbitration in accordance with the Rules of FINRA as at present in force. The arbitration shall take place in New York City,
the State of New York. The parties hereby submit themselves to the exclusive jurisdiction of the arbitration tribunal in the City
of New York, the State of New York under the auspices of FINRA. To the extent permitted by law, the award of the arbitrators may
include, without limitation, one or more of the following: a monetary award, a declaration of rights, an order of specific performance,
an injunction, reformation of the contract. The decision of the arbitrators shall be final and binding upon the parties hereto,
and judgment on the award may be entered in any court having jurisdiction over the subject matter thereof. Each party to the arbitration
shall bear its own expenses of the arbitration (including without limitation reasonable fees and expenses of counsel, experts
and consultants).

	(d)		This Agreement and the rights hereunder may not be assigned by either party (except
by operation of law) without the other party’s prior written consent.

	(e)		Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction
shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid
or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the
terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable,
the provision shall be interpreted to be only as broad as is enforceable.

    	 	 	 

    	 

    
	(f)		In rendering the Services, the Parties hereby agree that Chardan shall act as an independent
contractor and that nothing contained in this Agreement shall be construed to create any joint venture, partnership, employer-employee
or any other type of relationship between the Company and Chardan. It is further understood and agreed that this Agreement does
not create a fiduciary relationship between Chardan and the Company or their respective Boards of Directors. Chardan shall not
be considered to be the agent of the Company for any purpose whatsoever and Chardan is not granted any right or authority to assume
or create any obligation or liability, express or implied, on behalf of the Company, or to bind the Company in any manner whatsoever.

Section 11.Termination. The term (the “Term”)
of Chardan’s engagement hereunder shall commence on the date hereof and end on December 31, 2015; provided however that
this Agreement can be terminated early by either party on five (5) days after receipt of written notice of termination for any
reason after the five (5) month anniversary of the Agreement.

 

In addition, in the event
this Agreement shall be terminated in accordance with the provisions of this Section 11 or upon expiration of this Agreement,
neither party shall have any further rights or obligations hereunder, except that (i) no termination of this Agreement shall affect
any rights or obligations that shall have accrued hereunder prior to the effective date of termination, and (ii) the sections
headed “Confidential Information,” “Indemnification,” “Miscellaneous,” , and “Limitation
of Liability” shall survive after any termination.

 

Section 12.Limitation
of Liability. The liability of Chardan pursuant to this Engagement Letter shall be limited to the Placement Fee received
by Chardan hereunder, which shall not include any liability for incidental, consequential or punitive damages, except that no
such limitations shall apply to (i) any indemnification obligation under Annex A hereto, (ii) any breach by Chardan of Section
7 hereof or the last sentence of Section 9 hereof, or (iii) damages resulting from the bad faith, gross negligence, willful misconduct,
or intentional breach of this Agreement by Chardan.

 

Section 13.
Provision for Alternative Outcomes. In the event that other services are requested by the Company, the parties hereto
shall negotiate in good faith to determine a mutually acceptable level of compensation in such an eventuality.

    	 	 	 

    	 

    

We are delighted to accept this engagement and look forward to working with you on this
assignment. Please confirm that the foregoing is in accordance with your understanding by signing and returning to us one copy
of this enclosed duplicate of this agreement.

 

Very truly yours,

 

CHARDAN CAPITAL MARKETS, LLC

  

By: /s/ Steven Urbach ______________________________

Steven Urbach

President

  

Agreed to and Accepted this 9th day of June,
2015

 

MASSROOTS, INC.

  

By: /s/ Isaac Dietrich ______________________________

Isaac Dietrich

Chief Executive Officer

 

    	 	 	 

    	 

    

ANNEX A

 

INDEMNIFICATION

 

The Company agrees
to indemnify and hold harmless Chardan and its affiliates and their respective officers, directors, employees, agents (including
selected dealers) and controlling persons (Placement Agent and each such person being an “Indemnified Party”), from
and against any losses, claims, damages and liabilities, joint or several, to which such Indemnified Party may become subject
under any applicable law, or otherwise, which relate to or arise in any manner out of any transaction, financing, or any other
matter (collectively, the "Matters") contemplated by the engagement letter of which this Annex A forms a part and the
performance by Chardan of the services contemplated thereby, and will promptly reimburse each Indemnified Party for all reasonable
expenses (including reasonable fees and expenses of legal counsel) as incurred in connection with the investigation of, preparation
for or defense of any pending or threatened claim or any action or proceeding arising therefrom, whether or not such Indemnified
Party is a party and whether or not such claim, action or proceeding is initiated or brought by or on behalf of the Company. Notwithstanding
the foregoing, the Company shall not be liable under the foregoing to the extent that any loss, claim, damage, liability or expense
is found in a final judgment by a court (or arbitration panel) of competent jurisdiction to have resulted primarily from Placement
Agent’s bad faith, gross negligence, willful misconduct, intentional breach of the engagement letter of which this Annex
A forms a part, or the provision of information to investors in a Transaction that is not authorized by the Company (the “Excepted
Matters”).

 

The Company also agrees
that no Indemnified Party other than Chardan shall have any liability (whether direct or indirect, in contract or tort or otherwise)
to the Company or its security holders or creditors related to, arising out of, or in connection with, any Matters, the engagement
of Placement Agent pursuant to, or the performance by Placement Agent of the services contemplated by, the engagement letter,
except to the extent any loss, claim, damage or liability if found in a final judgment by a court of competent jurisdiction to
have resulted solely from Placement Agents’ bad faith or gross negligence. This limitation of liability set forth in this
paragraph shall not apply to Chardan, and the liability limits applicable to Chardan are set forth in Section 11 of the engagement
letter of which this Annex A forms a part.

 

If the indemnification of an Indemnified Party provided for
this letter agreement is for any reason held unenforceable, although otherwise applicable in accordance with its terms, the
Company agrees to contribute to the losses, claims, damages and liabilities for which such indemnification is held
unenforceable (i) in such proportion as is appropriate to reflect the relative benefits to the Company, on the one hand, and
Placement Agents, on the other hand, of any Matter (whether or not the Matter is consummated) or (ii) if (but only if) the
allocation provided for in clause (i) is for any reason held unenforceable, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) but also the relative fault of the Company, on the one hand, and
Placement Agent, on the other hand, as well as any other relevant equitable considerations. The Company agrees that for the
purposes of this paragraph the relative benefits to the Company and Placement Agent of any contemplated Matter (whether or
not such Matter is consummated) shall be deemed to be in the same proportion that the total value paid or received or to be
paid or received by the Company as a result of or in connection with any Matter, bears to the fees paid or to be paid to
Placement Agent under the engagement letter; provided, however, that, to the extent permitted by applicable law, in no event
shall the Indemnified Parties be required to contribute an aggregate amount in excess of the aggregate fees actually paid to
Chardan under the engagement letter of which this Annex A is a part.

 

    	 	 	 

    	 

    

Promptly after receipt
by Placement Agent or any other Indemnified Party of any notice of any proceeding, or the commencement of any legal action or
proceeding in respect of which indemnity may be sought against the Company, Chardan or such other Indemnified Party shall notify
the Company promptly in writing of the receipt of any such notice or commencement of such an action or proceeding. In the event
the Company shall be obligated under this Indemnification Annex to indemnify Chardan and/or such other Indemnified Party, the
Company may assume and control all aspects of the defense of such proceeding, including, inter alia, selection of counsel
(which counsel shall be reasonably acceptable to Chardan) and, subject to the next paragraph, settlement; provided, however,
that the Indemnified Parties shall have the right to retain separate counsel, but the fees and expenses of such counsel shall
be at the expense of the Indemnified Parties, unless (i) the employment of such counsel has been specifically authorized in writing
by the Company, (ii) the Company has failed to assume the defense and employ reasonably acceptable counsel as required above,
or (iii) the named parties to any such action (including any impleaded parties) include both (a) the Indemnified Parties and (b)
the Company, and the Indemnified Parties shall have reasonably determined that the defenses available to them are not available
to the Company and/or may not be consistent with the best interests of the Company or the Indemnified Parties (in which case the
Company shall not have the right to assume the defense of such action on behalf of the Indemnified Parties); it being understood,
however, that the Company shall not, in connection with any one such action or separate, substantially similar or related actions
in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses
of more than one separate firm of attorneys for the Indemnified Parties, which firm shall be designated in writing by Chardan.

 

The Company agrees that
it will not, without the prior written consent of Chardan, settle, compromise or consent to the entry of any judgment in any pending
or threatened claim, action or proceeding in respect of which indemnification may be sought hereunder (whether or not Chardan
or any other Indemnified Party is an actual or potential party to such claim, action or proceeding), unless such settlement, compromise
or consent includes an unconditional release of such Placement Agent and each other Indemnified Party hereunder from all liability
arising out of such claim, action or proceeding.

 

If Chardan or any other
Indemnified Party is requested or required to appear as a witness in any action brought by or on behalf of or against the Company
in which such party is not named as a defendant, the Company will reimburse Chardan for all reasonable actual out-of-pocket expenses
incurred in connection with such party’s appearing and preparing to appear as such a witness, including, without limitation,
the fees and disbursements of its legal counsel.

 

The provisions of this Annex A shall continue to apply and shall
remain in full force and effect regardless of any modification or termination of the engagement or engagement letter of which
this Annex A is a part or the completion of Placement Agent’s services thereunder.

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