Document:

Exhibit
10.3

 

ANNEX
P

 

SECURED
PROMISSORY NOTE

 

	$600,000.00
    	 	Round
    Rock, Texas

April
14, 2020

 

AYRO,
Inc., a Delaware corporation (the “Maker”), for value received, hereby promises to pay to Dr. Luis Duarte,
an individual (“Payee”) at 1930 Valley View, San Angelo, Texas 76904, the aggregate principal sum of Six Hundred
Thousand and No/100 Dollars ($600,000.00) (the “Initial Principal Amount”), or so much as is actually
advanced by Payee to Maker, and to pay interest thereon as to any such sums as are advanced from Payee to Maker from the date
advanced as provided in this Secured Promissory Note (this “Note”).

 

1.
Initial Term. All outstanding principal and all accrued and unpaid interest hereunder shall be due and payable on or before
the earlier of (a) the date that is ninety (90) days following the date of issuance of this Note, or (b) the date that is three
(3) business days following the closing of a contemplated reverse merger transaction involving Maker and Drop Car, Inc. (such
earlier date, the “Maturity Date”), unless such Maturity Date is accelerated in accordance with the terms of
this Note.

 

2.
Funding. Maker agrees to fund the loan evidenced by this Note on the following schedule: One Hundred Thousand Dollars ($100,000.00)
on or before April 14, 2020 (the “Initial Installment”); Two Hundred Thousand Dollars ($200,000.00)
on or before April 17, 2020 and Three Hundred Thousand Dollars ($300,000.00) on or before April 28, 2020 (collectively,
the “Subsequent Installments”). Maker agrees that from and after Maker’s execution of this Note and acceptance
of the Initial Installment from Payee, and as a condition of Payee’s agreement to advance the loan contemplated herein to
Maker, Payee will have a binding and enforceable obligation to timely advance to Maker the Subsequent Installments, and upon timely
funding such Subsequent Installments to receive the shares of Maker’s Common Stock contemplated in Section 4. Notwithstanding
the foregoing, Payee shall not be deemed to have breached the obligation to timely fund the Subsequent Installments so long as
Payee funds such Subsequent Installments within five (5) days of the respective dates indicated above.

 

3.
Interest. Interest will accrue on the outstanding principal at Fifteen Percent (15%) per annum, simple interest from the
date of funding until repaid.

 

4.
Equity. In connection with the Maker’s issuance of this Note and Payee’s funding and Guarantor’s personal
guaranty of the loan evidenced hereby, Maker shall, upon Payee’s funding in full of the Initial Principal Amount, grant
to each of Payee and Guarantor a number of shares of Maker’s Common Stock (“Common Shares”) equal to
the number of issuable shares as calculated below (the “Issuable Shares”). Maker’s Common Stock has par
value $0.001 per share and is subject to the rights and restrictions identified in the Company’s Certificate of Incorporation.
It is contemplated that Maker’s successor will have approximately 55,012,444 shares of Common Stock outstanding upon the
closing of the Merger. Payee and Guarantor are aware of the terms of the pending merger between Maker and DropCar. The number
of Issuable Shares to be issued to each of Payee and Guarantor will be equal to two percent (2%) of the aggregate issued and outstanding
shares of Maker and DropCar immediately post-merger (the “Post-Merger Outstanding Shares”). For avoidance of doubt,
the Issuable Shares, when issued to each of Payee and Guarantor, will in aggregate represent four percent (4%) of the Post-Merger
Outstanding Shares. Such Issuable Shares are anticipated to consist of approximately 1,014,614 Common Shares issuable to each
of Payee and Guarantor, for a total of 2,029,228 Common Shares expected to be issued by Maker, multiplied by the merger exchange
ratio (currently 1.0844 resulting in 1,100,248 each and 2,200,496 total shares of the combined companies, respectively) and, subject
to adjustment for the actual number of Post-Merger Outstanding Shares. The number of Common Shares to be issued hereunder as the
Issuable Shares will further be adjusted as reasonably required for stock splits, reverse splits and other equity adjustments
that similarly affect the Company’s Common Shares. Payee understands that the common stock shares issued under this agreement
are subject to the standard lockup period of twelve (12) months following completion of the pending merger and Payee hereby agrees
to execute the Maker’s standard “Lockup Agreement”.

 

    	 

    	 	 

    

 

5.
Payments. All outstanding principal and accrued and unpaid interest thereunder shall be due and payable in full at the
Maturity Date. All payments hereunder shall be applied: (A) first, to accrued and unpaid interest, if any; (B) second, to the
payment of the outstanding principal amount of this Note; and (C) third, to payment of any of Payee’s expenses arising out
of this Note. All payments of principal, interest, and other amounts due hereunder shall be made by Maker in lawful money of the
United States of America in immediately available funds at the principal place of business of Payee or at such other place designated
by Payee from time to time in writing to Maker. Notwithstanding anything contained herein to the contrary, payments shall be made
when due under this Note. In the event Maker fails to make any payment due hereunder on or before the applicable due date, Maker
will issue to each of Payee and Guarantor shares of Maker’s Common Stock in the amount of Five Thousand (5,000) shares per
day for each day by which such payment is late. This share issuance requirement will continue until such late payment is made
in full by Maker.

 

6.
Prepayment. This Note may be prepaid, in whole or in part, by Maker at any time or from time to time, without penalty or
premium and without advance notice to Payee, provided, however, that (i) Maker shall pay all then-accrued interest
in connection with any such prepayment, and (ii) Maker acknowledges that the Payee and Guarantor will have fully earned the Issuable
Shares upon Payee’s timely funding of the Initial Principal Amount, such that prepayment of this Note shall have no effect
on Payee’s and Guarantor’s ownership of the Issuable Shares.

 

7.
Collateral; Personal Guaranty. The Note is to be secured by a subordinated lien security interest in all assets of the
Maker (the “Collateral”), which lien will be subordinate to all liens of record against Maker as of the date
of this Note and will be granted via a Security Agreement of even date herewith (the “Security Agreement”)
executed by Maker as Grantor in favor of Payee as Secured Party. The Note is additionally to be secured by a personal guaranty
of even date herewith in favor of Maker (such guaranty, the “Personal Guaranty”) issued by Mark Adams (“Guarantor”),
and guarantying 50% of the obligations owed by Maker to Payee and other sums as described in the Personal Guaranty, up to a maximum
obligation of Guarantor to Maker of $300,000 in aggregate. Maker and Payee each by execution of this Note acknowledge and agree
that as consideration for Guarantor’s execution and delivery to Payee of the Personal Guaranty, Guarantor will receive the
Issuable Shares to be issued to Guarantor as described in Section 4.

 

    	 

    	 	 

    

 

8.
Events of Default.

 

a.
Any of the events specified in this Section 8 shall constitute a default by Maker hereunder (each, an “Event of Default”):

 

i.
Failure to Pay. Default in the payment of the principal or unpaid accrued interest of this Note within ten (10) business days
of the due date thereof (whether at the Maturity Date, upon acceleration, or otherwise);

 

ii.
Breach of Covenants. Any material breach by Maker of any representation, warranty, condition, agreement, or covenant in this Note,
or the Security Agreement, including but not limited to Maker’s failure to timely issue an original executed stock certificate
representing the Issuable Shares, which breach is not cured within ten (10) business days following the date on which Payee has
provided written notice to Maker of the occurrence thereof;

 

iii.
Change of Control. Any transaction or series of transactions, the consummation of which results in a change of Control of Maker
(as defined below) of all or substantially all of its business, including, but not limited to: (A) the transfer of all or substantially
all of Maker’s assets other than to one or more affiliates of Maker with the prior consent of Payee, or (B) a transfer of
Maker’s equity or a reorganization or a merger or consolidation of Maker, in each such case in this subsection (B) with
an unaffiliated third party (each, an “Unauthorized Transferee”), in a single transaction or a series of transactions
which results in an Unauthorized Transferee owning 50% or more of the voting and equity rights of Maker (or the merged or consolidated
entity) immediately following such transfer, reorganization, merger or consolidation or series of transactions, except, in each
case, with the prior written consent of Payee, which may not be unreasonably withheld, delayed, or denied. As used herein, “Control
of Maker” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of Maker, whether through the ownership of equity, by contract or otherwise. For purposes of this Section 8,
change of control of Maker does not include the contemplated reverse merger transaction currently under evaluation; or

 

iv.
Bankruptcy; Etc. Maker (A) makes an assignment for the benefit of creditors, (B) consents to or seeks the appointment of a custodian,
receiver, trustee or other similar official for itself or for all or a substantial part of its assets, (C) suffers the appointment
of an official as described in (B), and such person is not removed within sixty (60) days after the appointment, or (D) proceedings
are commenced against Maker under any bankruptcy, reorganization, liquidation, or similar laws of any jurisdiction, and they remain
undismissed for sixty (60) days after commencement;

 

    	 

    	 	 

    

 

v.
Judgments. One or more judgments or decrees shall be entered against Maker and all of such judgments or decree shall not have
been vacated, discharged, or stayed or bonded pending appeal within thirty (30) calendar days from the entry thereof.

 

b.
Upon and during the continuance of an Event of Default (but only subsequent to the expiration of any applicable cure period),
Payee may, at its option, exercise any one or more of the following remedies, by notice in writing to Maker:

 

i.
Declare the total unpaid principal balance of this Note, together with all accrued and unpaid interest thereon, immediately due
and payable; or

 

ii.
Exercise any other right or remedy available to Payee under the Security Agreement, or at law or in equity.

 

c.
Payee’s remedies under this Note shall be cumulative and concurrent and may be pursued singly, successively, or together
against Maker, and Payee may resort to every other right or remedy available at law or in equity, or acts in a court of law to
obtain an interim remedy, such as but not limited to, injunctive relief, writ of possession or appointment of receiver or additional
or supplementary remedies, all without first exhausting the rights and remedies contained herein, all in Payee’s sole discretion.
Failure of Payee, for a period of time or on more than one occasion, to exercise any right or remedy hereunder shall not constitute
a waiver of the right to exercise the same at any time during the continued existence of the Event of Default or in the event
of any subsequent Event of Default. Payee shall not by any omission or act be deemed to waive any of its rights or remedies hereunder
unless such waiver be in writing and signed by Payee, and then only to the extent specifically set forth therein. A waiver in
connection with one event shall not be construed as continuing or as a bar to or waiver of any right or remedy in connection with
a subsequent event.

 

d.
Maker hereby waives presentment and demand for payment, notices of nonpayment and of dishonor, protest of dishonor, and notice
of protest.

 

9.
Assignment. The rights and obligations of Maker and Payee in this Note shall be binding upon and benefit the successors
and permitted assigns and transferees of such parties. This Note is not assignable by any party unless the other party consents
to such assignment, the consent for which assignment or transfer may be withheld, delayed or denied by the relevant party in its
sole and absolute discretion.

 

10.
Loss, Destruction, Mutilation. Upon receipt by Maker of evidence satisfactory to it of the loss, theft, destruction or
mutilation of this Note, and (in the case of loss, theft or destruction) of reasonably satisfactory indemnification, and (in the
case of mutilation) upon surrender and cancellation of this Note, Maker will execute and deliver a new Note, which shall constitute
an additional contractual obligation on the part of Maker. The issuance and delivery of such new Note shall render this Note null
and void.

 

    	 

    	 	 

    

 

11.
Amendment. Any provision of this Note may be amended or modified only upon the written consent of Maker and Payee.

 

12.
Waiver. Any provision of this Note may be waived only upon the written consent of the waiving party.

 

13.
Severability. The parties hereto intend and believe that each provision in this Note comports with all applicable law.
However, if any provision of this Note is found by a court of law to be in violation of any applicable law, and if such court
should declare such provision of this Note to be unlawful, void or unenforceable as written, then it is the intent of Maker that
such provisions shall be given full force and effect to the fullest possible extent that it is legal, valid and enforceable, that
the remainder of this Note shall be construed as if such unlawful, void or unenforceable provision were not contained therein,
and that the rights, obligations and interests of Maker and Payee under the remainder of this Note shall continue in full force
and effect.

 

14.
Notices. Except as specifically provided otherwise herein, any and all notices or other communications required or permitted
by this Note or by law to be delivered to, served on, or given to any party hereto by any other party to this Note shall be in
writing and shall be deemed properly delivered, given, or served when personally delivered to the party to whom it is directed,
or in lieu of personal service, when deposited in the United States mail, first-class postage prepaid, certified mail, return
receipt requested, at the hereafter indicated addresses for notice. Any party may change his, her, or its address for the purposes
of this Section 14 by giving written notice of the change to all other parties in the manner provided in this Paragraph.
The parties’ addresses for notice hereunder shall be as set forth on the first page of this Note for Payee, or on the execution
page hereof for Maker, or as subsequently provided by a party by notice delivered in accordance with this Section 14.

 

15.
Governing Law. The validity, construction and interpretation of this Note shall be governed by the laws of the State of
Texas. The parties hereto irrevocably agree that all actions or proceedings in any way, manner or respect, arising out of or from
or related to this Note shall be litigated only in courts having situs in Round Rock, Williamson County, Texas. Each party hereby
consents and submits to personal jurisdiction in Round Rock, Williamson County, Texas and waives any right such party may have
to transfer the venue of any such action or proceeding.

 

    	 

    	 	 	 

    

 

16.
Waiver of Jury Trial. MAKER WAIVES ANY RIGHT TO TRIAL BY JURY ON ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS
(I) UNDER THIS NOTE, THE SECURITY AGREEMENT, OR ANY OTHER INSTRUMENT, DOCUMENT, AMENDMENT, OR AGREEMENT WHICH MAY BE DELIVERED
IN THE FUTURE IN CONNECTION WITH THIS NOTE; OR (II) ARISING FROM THE TRANSACTIONS CONTEMPLATED BY THIS NOTE, AND AGREES THAT ANY
SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. MAKER AND PAYEE IRREVOCABLY AGREE THAT ALL ACTIONS
OR PROCEEDINGS IN ANY WAY, MANNER OR RESPECT ARISING OUT OF OR FROM OR RELATED TO THIS NOTE SHALL BE LITIGATED ONLY IN COURTS
HAVING SITUS WITHIN THE CITY OF ROUND ROCK, STATE OF TEXAS. MAKER AND PAYEE HEREBY CONSENT AND SUBMIT TO THE EXCLUSIVE JURISDICTION
OF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN SAID CITY AND STATE. EACH OF MAKER AND PAYEE HEREBY WAIVE ANY RIGHT THEY MAY
HAVE TO TRANSFER OR CHANGE VENUE OF ANY SUCH ACTION OR PROCEEDING.

 

17.
Attorneys’ Fees. In the event any suit or action is brought by Payee or Maker under this Note to enforce any of its
terms, or in any appeal therefrom, it is agreed that the prevailing party shall be entitled to recover its reasonable attorneys’
fees from the non-prevailing party.

 

18.
Heading; References. All headings used herein are used for convenience only and shall not be used to construe or interpret
this Note. Except where otherwise indicated, all references herein to Sections refer to Sections hereof.

 

19.
Counterparts; Integration; Effectiveness. This Note, the Security Agreement, and any amendments, waivers, consents, or
supplements hereto may be executed in counterparts, each of which shall constitute an original, but all taken together shall constitute
a single contract. This Note and the Security Agreement constitute the entire contract between the parties hereto with respect
to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto.
Delivery of an executed counterpart of a signature page to this Note by facsimile or in electronic (i.e., “pdf” or
“tif”) format shall be effective as delivery of a manually executed counterpart of this Note or the Security Agreement,
as applicable.

 

[EXECUTION
PAGE FOLLOWS]

 

    	 

    	 	 

    

 

IN
WITNESS WHEREOF, Maker has caused this Note to be issued as of the date set forth above.

 

	 	MAKER:
	 	 
	 	AYRO,
    Inc.
	 	a
    Delaware corporation
	 	 	 
	 	By:	/s/
    Rod Keller         
	 	Name:	Rod
    Keller
	 	Title:	CEO
	 	 	 
	 	Address:	 
	 	900
                                         E. Old Settlers Blvd.

                                                                     Suite
                                         100

	 	Round
    Rock, TX 78664
	 	 	 
	 	Agreed
    to:
	 	 	 
	 	PAYEE:	 
	 	 	 
	 	/s/ Dr. Luis Duarte
	 	Dr. Luis Duarte

 

[EXECUTION
PAGE TO

SECURED
PROMISSORY NOTE]

 

    	 

    	 	 

    

 

SECURITY
AGREEMENT

 

This
Security Agreement (this “Agreement”) is made as of April 9, 2020, by and between AYRO, Inc., a Delaware corporation
(the “Grantor”) with a notice address of 900 E. Old Settlers Blvd., Suite 100, Round Rock, TX 78664, in favor
of Dr. Luis Duarte, an individual resident of the State of Texas with a principal address of 1930 Valley View, San Angelo, Texas
76904 (the “Secured Party”).

 

RECITALS

 

The
Grantor is party to a certain Secured Promissory Note between Grantor as Maker and Secured Party as Payee in the original principal
amount of $600,000 of even date herewith (the “Secured Note”), issued by Grantor in connection with a loan
of $600,000 from Secured Party to Grantor to be funded as set forth in the Secured Note. The parties intend that the Grantor’s
obligations under the Secured Note be secured by a security interest in all of the assets of the Grantor, which lien will be subordinate
to liens of record as of the date of this Agreement.

 

AGREEMENT

 

In
consideration of the benefits bestowed upon Grantor as a result of the aforementioned loan transaction documented by the Secured
Note and for other good and valuable consideration, the Grantor hereby agrees with the Secured Party as follows:

 

Grant
of Security Interest. To secure the Grantor’s full and timely performance of all of Grantor’s obligations
and liabilities to the Secured Party pursuant to the Secured Note (the “Obligations”), the Grantor hereby grants
to the Secured Party a continuing security interest (the “Security Interest”) in and to the Grantor’s
property described on Schedule 1 attached to this Agreement (the “Collateral”).

 

Notwithstanding
the foregoing, such grant of a security interest shall not extend to, and the term “Collateral” shall not include,
any of the Collateral, which are now or hereafter held by the Grantor to the extent that (i) the same are not assignable or capable
of being encumbered as a matter of law or under the terms of any agreement applicable thereto (except to the extent that such
restriction does not impair the creation of a security interest under the Uniform Commercial Code, as amended (the “Code”),
without the consent of the other applicable party thereto and (ii) such consent has not been obtained; provided, however, that
such grant of a security interest shall extend to, and the term “Collateral” shall include (A) any and all proceeds
of the foregoing to the extent that the assignment or encumbering of such proceeds is not so restricted and (B) upon any other
applicable party’s consent being obtained with respect to any of the foregoing that is otherwise excluded, thereafter the
same as well as any and all proceeds thereof that might have theretofore been excluded from such grant of a security interest
shall be included within the term “Collateral.” For purposes of this Agreement “Event of Default” shall
mean, at the discretion of Secured Party, any event of default by the Grantor under or in connection with the Secured Note.

 

Remedies.
If an Event of Default has occurred and is continuing, the Secured Party may exercise, in addition to all other rights and
remedies granted to it in this Agreement and in any other instrument or agreement relating to the Obligations, all rights and
remedies of a secured party under the Code. Without limiting the foregoing, the Secured Party, without demand of performance or
other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law) to or upon the Grantor
or any other person (all of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances
collect, receive, appropriate and realize upon any or all of the Collateral, and/or may sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver any or all of the Collateral (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, at any exchange, broker’s board or office of a Secured Party or elsewhere
upon such terms and conditions as the Secured Party may deem advisable, for cash or on credit or for future delivery without assumption
of any credit risk. The Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted by
law, upon any such private sale or sales, to purchase all or any part of the Collateral so sold, free of any right or equity of
redemption in the Grantor, which right or equity is hereby waived or released. The Secured Party shall apply the net proceeds
of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable expenses incurred
therein or in connection with the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the
rights of the Secured Party under this Agreement (including, without limitation, reasonable attorneys’ fees and expenses)
to the payment in whole or in part of the Obligations, in such order as the Secured Party may elect, and only after such application
and after the payment by the Secured Party of any other amount required by any provision of law, need the Secured Party account
for the surplus, if any, to the Grantor. If any notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition.

 

    	 

    	 	 

    

 

Powers
Coupled with an Interest. All authorizations and agencies contained in this Agreement with respect to the Collateral are
irrevocable and powers coupled with an interest.

 

No
Waiver and Cumulative Remedies. No failure to exercise, nor any delay in exercising, on the part of the parties, any right,
power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver
by a party of any right or remedy under this Agreement on any one occasion shall not be construed as a bar to any right or remedy,
which such party would otherwise have on any subsequent occasion. The rights and remedies provided in this Agreement are cumulative,
may be exercised singly or concurrently and are not exclusive of any rights or remedies provided by law.

 

5.
Perfection of Security Interest and Further Assurances.

 

(a)
The Grantor shall, from time to time, as may be required by the Secured Party with respect to all Collateral, take all actions
as may be requested by the Secured Party to perfect the security interest of the Secured Party in the Collateral, including, without
limitation, with respect to all Collateral over which control may be obtained within the meaning of sections 8-106, 9-104, 9-105,
9-106 and 9-107 of the UCC, section 201 of the federal Electronic Signatures in Global and National Commerce Act and, as the case
may be, section 16 of the Uniform Electronic Transactions Act, as applicable, the Grantor shall immediately take all actions as
may be requested from time to time by the Secured Party so that control of such Collateral is obtained and at all times held by
the Secured Party. All of the foregoing shall be at the sole cost and expense of the Grantor.

 

(b)
The Grantor hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any relevant jurisdiction
any financing statements and amendments thereto that contain the information required by Article 9 of the UCC of each applicable
jurisdiction for the filing of any financing statement or amendment relating to the Collateral, including any financing or continuation
statements or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest
granted by the Grantor hereunder, without the signature of the Grantor where permitted by law, including the filing of a financing
statement describing the Collateral as all assets now owned or hereafter acquired by the Grantor, or words of similar effect.
The Grantor agrees to provide all information required by the Secured Party pursuant to this Section promptly to the Secured Party
upon request.

 

(c)
The Grantor hereby further authorizes the Secured Party to file with the United States Patent and Trademark Office and the United
States Copyright Office (and any successor office and any similar office in any state of the United States or in any other country)
this Agreement and other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security
interest granted by the Grantor hereunder, without the signature of the Grantor where permitted by law.

 

    	 

    	 	 

    

 

(d)
If the Grantor shall at any time hold or acquire any certificated securities, promissory notes, tangible chattel paper, negotiable
documents or warehouse receipts relating to the Collateral, the Grantor shall endorse, assign and deliver the same to the Secured
Party, accompanied by such instruments of transfer or assignment duly executed in blank as the Secured Party may from time to
time specify.

 

(e)
If any Collateral is at any time in the possession of a bailee, the Grantor shall promptly notify the Secured Party thereof and,
at the Secured Party’s request and option, shall promptly obtain an acknowledgment from the bailee, in form and substance
satisfactory to the Secured Party, that the bailee holds such Collateral for the benefit of the Secured Party and the bailee agrees
to comply, without further consent of the Grantor, at any time with instructions of the Secured Party as to such Collateral.

 

(f)
The Grantor agrees that at any time and from time to time, at the expense of the Grantor, the Grantor will promptly execute and
deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may
be necessary or desirable, or that the Secured Party may reasonably request, in order to perfect and protect any security interest
granted hereby or to enable the Secured Party to exercise and enforce its rights and remedies hereunder or under any other agreement
with respect to any Collateral.

 

(g)
The Grantor agrees that until it has fully satisfied all obligations to Secured Party in his capacity as Maker under the Note,
Grantor will not incur secured debt or grant any other liens on the Collateral, other than liens arising by operation of law,
without obtaining Secured Party’s prior written consent thereto.

 

Miscellaneous.

 

Amendments
and Waivers. Any term of this Agreement may be amended with the written consent of the Grantor and of Secured Party. Any
amendment or waiver effected in accordance with this Section 6(a) shall be binding upon the parties and their respective successors
and assigns.

 

Transfer;
Successors and Assigns. The terms and conditions of this Agreement shall be binding upon the Grantor and its successors
and assigns and inure to the benefit of the Secured Party and its successors and assigns. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

Governing
Law. This Agreement 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 State of Texas.

 

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

 

Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.

 

Notices.
All notices or other communications required or permitted to be given pursuant hereto shall be given via certified mail, return
receipt requested, and directed to the parties at their respective addresses as provided in the initial paragraph herein (or at
such other notice address as a party may subsequently provide the other party hereto via such method of notice).

 

Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith in order to maintain the economic position enjoyed by each party as close as possible to that under
the provision rendered unenforceable. In the event that the parties cannot reach a mutually agreeable and enforceable replacement
for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be
interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with
its terms.

 

Entire
Agreement. This Agreement and the documents referred to herein constitute the entire agreement between the parties hereto
pertaining to the subject matter hereof, and any and all other written or oral agreements existing between the parties hereto
concerning such subject matter are expressly canceled.

 

[Signatures
Follow]

 

    	 

    	 	 

    

 

The
Grantor has executed this Security Agreement as of the date first written above.

 

	 	GRANTOR:
	 	 
	 	AYRO,
    Inc.
	 	a
    Delaware corporation
	 	 
	 	By:	/s/
    Rod Keller
	 	Name:	Rod
    Keller
	 	Title:	CEO
	 	 	 
	 	Address
    for Notice:
	 	900
    E. Old Settlers Blvd.,
	 	Suite
    100,
	 	Round
    Rock, TX 78664

 

[Secured
Party Signature Page Follows]

 

    	 

    	 	 

    

 

The
undersigned Secured Party has executed this Security Agreement as of the date first written above.

 

	 	SECURED
    PARTY:
	 	 
	 	/s/
    Dr. Luis Duarte
	 	Dr.
    Luis Duarte

 

    	 

    	 	 

    

 

SCHEDULE
1

 

Collateral

 

The
Collateral shall consist of all right, title, interest, claims and demands of Grantor (sometimes referred to herein as the “Company”)
in and to the following:

 

(a)
all equipment (including all “Equipment” as such term is defined in Section 9-102(a)(33) of the Code), machinery,
vehicles, fixtures, improvements, supplies, furniture, and other fixed assets, all as now owned or hereafter acquired by the Company
or in which the Company has or hereafter acquires any interest, and any items substituted therefor as replacements and any additions
or accessions thereto (all of the property described in this clause (a) being hereinafter collectively referred to as “Equipment”);

 

(b)
all goods (including all “Goods” as defined in Section 9-102(a)(44) of the Code) and all inventory (including all
“Inventory” as defined in Section 9-102(a)(48) of the Code) of the Company, now owned or hereafter acquired by the
Company or in which the Company has or hereafter acquires any interest, including but not limited to, raw materials, scrap inventory,
work in process, products, packaging materials, finished goods, documents of title, chattel paper and other instruments covering
the same and all substitutions therefor and additions thereto (all of the property described in this clause (b) being hereinafter
collectively referred to as “Inventory”);

 

(c)
all present and future accounts in which the Company has or hereafter acquires any interest (including all “Accounts”
as defined in Section 9-102(a)(2) of the Code), contract rights (including all rights to receive payments and other rights under
all equipment and other leasing contracts) and rights to payment and rights or accounts receivable evidencing or representing
indebtedness due or to become due the Company on account of goods sold or leased or services rendered, claims and instruments
(including tax refunds, royalties and all other rights to the payment of money of every nature and description), including but
not limited to, any such right evidenced by chattel paper (whether in tangible, electronic or other form), and all liens, securities,
guaranties, remedies, security interests and privileges pertaining thereto (all of the property described in this clause (c) being
hereinafter collectively referred to as “Accounts”);

 

    	 

    	 	 

    

 

(d)
all investment property now owned or hereafter acquired by the Company (including all “Investment Property” as defined
in Section 9-102(a)(49) of the Code), including, without limitation, all securities (certificated and uncertificated), securities
accounts, securities entitlements, commodity contracts and commodity accounts, and all dividends and distributions paid or payable
thereon;

 

(e)
all general intangibles now owned or hereafter acquired by the Company or in which the Company has or hereafter acquires any interest
(including all “General Intangibles” as defined in Section 9-102(a)(42) of the Code), including but not limited to,
payment intangibles (including all “Payment Intangibles” as defined in Section 9-102(a)(61) of the Code), choses in
action and causes of action and all licenses and permits (to the extent the collateral assignment of such licenses and permits
is not prohibited by applicable law), registrations, franchises, corporate or other business records, systems, designs, software,
manuals, procedures, drawings, goodwill, logos, indicia, business identifiers, inventions, processes, production methods, proprietary
information, know-how and trade-secrets of the Company, and all Intellectual Property, trade-names, copyrights, patents, trademarks
(including service marks) and copyright, patent and trademark applications, all continuations thereof in whole or in part, and
contract rights (including but not limited to all rights to receive payments and other rights under all equipment and other leasing
contracts, instruments and documents owned or used by the Company, and any goodwill relating thereto);

 

(f)
all other personal property owned by the Company or in which the Company has or hereafter acquires any interest, wherever located,
and of whatever kind or nature, tangible or intangible;

 

(g)
all moneys, cash, chattel paper (including all “Chattel Paper” as defined in Section 9-102(a)(11) of the Code), checks,
notes, bills of exchange, documents of title, money orders, negotiable instruments, commercial paper, and other securities, letters
of credit (including all “Letter-of-Credit Rights” as defined in Section 9-102(a)(51) of the Code), supporting obligations
(including all “Supporting Obligations” as defined in Section 9-102(a)(77) of the Code), instruments (including all
“Instruments” as defined in Section 9-102(a)(47) of the Code), documents (including all “Documents” as
defined in Section 9-102(a)(30) of the Code) and deposit accounts (including all “Deposit Accounts” as defined in
Section 9-102(a)(29) of the Code), deposits and credits from time to time whether or not in the possession of or under the control
of the Secured Party;

 

(h)
all commercial tort claims (as defined in Section 9-102(a)(13) of the Code);

 

(i)
all books and records relating to any of the foregoing assets or property; and

 

(j)
any consideration received or receivable when all or any part of the property referred to in clauses (a) through (i) above is
sold, transferred, exchanged, leased, collected or otherwise disposed of, or any value received or receivable as a consequence
of possession thereof, including but not limited to, all products, proceeds (including all “Proceeds” as defined in
Section 9-102(a)(64) of the Code), cash, negotiable instruments and other instruments for the payment of money, chattel paper,
security agreements or other documents, insurance proceeds, condemnation awards or proceeds of other proceeds now or hereafter
owned by the Company or in which the Company has an interest.

 

    	 

    	 	 

    

 

PERSONAL
GUARANTY

 

This
Personal Guaranty is made as of April 11, 2020, by Mark Adams, an individual resident of the State of Texas (the “Guarantor”),
and Dr. Luis Duarte (the “Lender”).

 

W
I T N E S S E T H:

 

WHEREAS,
pursuant to, and subject to certain terms and conditions contained in that certain promissory note of even date herewith in the
original principal amount of $600,000 (the “Note”) by and between the Lender and AYRO, Inc., a Delaware corporation
(“Borrower”), as the same may be amended, renewed, restated or extended from time to time, the Lender has made
a loan to the Borrower in an aggregate principal amount of Six Hundred Thousand Dollars ($600,000), such loan being evidenced
by the Note; and

 

WHEREAS,
the Guarantor is a co-founder, director and principal shareholder of the Borrower, and the Guarantor has a substantial interest
in the Borrower; and

 

WHEREAS,
the Lender would not enter into the aforesaid loan transaction with the Borrower unless, among other matters, all of the obligations
of the Borrower under the Note as hereinafter provided, including, without limitation, the punctual payment of both principal
and interest to be paid, are personally guaranteed by the Guarantor, to the extent provided herein;

 

NOW,
THEREFORE, the Guarantor hereby covenants and agrees as follows:

 

1.
This Personal Guaranty shall become effective upon the execution hereof.

 

2.
The Guarantor, as primary obligor and not merely as surety, hereby absolutely, unconditionally and irrevocably, guarantees to
the Lender: (i) the due and punctual payment in full (and not merely the collectability) of the principal of the Note, and the
interest thereon, in each case when due and payable, according to the terms of the Note, whether at stated maturity, by reason
of acceleration or otherwise; (ii) the due and punctual payment in full (and not merely the collectability) of all other sums
and charges which may at any time be due and payable in accordance with, or under the terms of, the Note, whether at stated maturity,
by reason of acceleration or otherwise; (iii) the due and punctual payment (and not merely the collectability), performance and
observance of all of the other obligations, indebtedness, liabilities, terms, covenants and conditions contained in the Note,
all agreements and instruments at any time executed in connection with the Note, and any other security instruments and agreements
relating to the Note, whether now or hereafter existing, on the part of the Borrower to be performed or observed (collectively
the Note, all security instruments and all related agreements, whether now existing or arising hereafter, are collectively referred
to herein as the “Loan Documents”); and (iv) the due and punctual payment in full (and not merely the collectability)
of any and all other indebtedness, obligations and liabilities of the Borrower to the Lender of every kind and description, whether
now existing or hereafter arising, whether direct, indirect or contingent, whether secured or unsecured, and howsoever evidenced,
incurred or arising (all of the foregoing are collectively hereinafter called the “Obligations”); provided,
however that (i) such Guaranty is intended and agreed to secure payment of a maximum of Fifty Percent (50%) of the total
amount of the Obligations, and (ii) in no event will Guarantor’s obligations under this Guaranty exceed a maximum amount
of $300,000 in the aggregate.

 

2.
The Guarantor expressly agrees that the Lender may, in Lender’s sole and absolute discretion, without notice to or further
assent of the Guarantor and without in any way releasing, affecting or impairing the obligations and liabilities of the Guarantor
hereunder deal with the Borrower and its collateral as deemed reasonable by Lender regarding the Lender’s loans to the Borrower;
including without limitation (i) assign or otherwise transfer the Loan Documents, including, without limitation, this Guaranty,
or any interest therein; and (ii) deal in all respects with the Borrower, the Obligations or any collateral securing the Obligations
as if this Guaranty were not in effect. The obligations of the Guarantor under this Guaranty shall be absolute and unconditional,
irrespective of the genuineness, validity, regularity, enforceability or priority of the Loan Documents or any other circumstances
which might otherwise constitute a legal or equitable discharge of a surety or guarantor.

 

    	 

    	 	 

    

 

3.
The liability of the Guarantor under this Guaranty shall be primary, direct and immediate and not conditional or contingent upon
pursuit by the Lender of any remedies Lender may have against the Borrower or any other party with respect to the Loan Documents,
whether pursuant to the terms thereof or otherwise. No exercise or non-exercise by the Lender of any right given to them hereunder
or under the Loan Documents, and no change, impairment or suspension of any right or remedy of the Lender, shall in any way affect
any of Guarantor’s obligations hereunder or give the Guarantor any recourse against the Lender. Without limiting the generality
of the foregoing, the Lender shall not be required to make any demand on the Borrower and/or any other party, or otherwise pursue
or exhaust their remedies against the Borrower or any other party, before, simultaneously with or after, enforcing their rights
and remedies hereunder against the Guarantor. Any one or more successive and/or concurrent actions may be brought hereon against
the Guarantor, either in the same action, if any, brought against the Borrower and/or any other party, or in separate actions,
as often as the Lender, in Lender’s sole discretion, may deem advisable. Notwithstanding the foregoing, however, and anything
to the contrary contained in this Guaranty, Lender agrees it will refrain from taking any action to enforce this Guaranty against
Guarantor prior to the date that is ninety (90) days from the occurrence of any Event of Default by Borrower under the Loan Documents.

 

4.
The Guarantor hereby expressly waives: (i) diligence, presentment and demand for payment and protest of nonpayment; (ii) notice
of acceptance of this Guaranty and of presentment, demand, dishonor and protest; (iii) notice of any default hereunder or under
the Loan Documents and of all indulgences; (iv) demand for observance or performance of, or enforcement of, any terms or provisions
of this Guaranty or the Loan Documents; (v) notice of extensions of credit by the Lender to the Borrower and of any change in
the rate at which interest accrues under the Loan Documents; (vi) all other notices and demands otherwise required by law which
the Guarantor may lawfully waive; (vii) the right to assert in any action or proceeding hereupon any setoff, counterclaim or other
claim which Guarantor may have against the Lender; (viii) until payment in full of the Obligations in cash, all rights of subrogation,
reimbursement or contribution against the Borrower which might otherwise arise by reason of the Guarantor’ execution, performance
or payment of this Guaranty; and (ix) the benefit of all other principles or provisions of law, statutory or otherwise, which
are or might be in conflict with the terms hereof.

 

5.
In each case of happening of any of the following events (each of which is herein sometimes called an “Event of Default”):

 

5.1
any representation or warranty made in this Guaranty or in any report, certificate, financial statement or other instrument furnished
or to be furnished in connection with this Guaranty, shall prove to be false or misleading in any material respect; or

 

5.2
default in the payment of any indebtedness of the Borrower to the Lender, when the same shall become due and payable, whether
at the due date thereof or at a date fixed for prepayment or by acceleration or otherwise, and continuation of such default for
a period of fifteen (15) consecutive days; or

 

5.3
default in the due observance or performance of any covenant, condition or agreement contained in this Guaranty or in any agreement
now or hereafter securing payment of this Guaranty after 30 days’ notice and opportunity to cure;

 

5.4
the Guarantor shall (i) apply for or consent to the appointment of a receiver, trustee, custodian or liquidator of any of his
property, (ii) admit in writing his inability to pay his debts as they mature, (iii) make a general assignment for the benefit
of creditors, (iv) be adjudicated a bankrupt or insolvent or be the subject of an order for relief under Title 11 of the United
States Code, or (v) file a voluntary petition in bankruptcy, or a petition or an answer seeking reorganization or an arrangement
with creditors or to take advantage of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation
law or statute, or an answer admitting the material allegations of a petition filed against him in any proceeding under any such
law or corporate action shall be taken for the purpose of effecting any of the foregoing; or

 

    	 

    	 	 

    

 

5.5
the occurrence of an “Event of Default” as defined in the Loan Agreement, which “Events of Default” are
incorporated herein by reference as if set forth at length herein; or then and upon any such Event of Default and at any time
thereafter during the continuance of such Event of Default, at the election of the Lender, the Note and the Obligations and any
and all other obligations of the Borrower and Guarantor and each of them to the Lender shall for the purposes of this Guaranty
immediately become due and payable, both as to principal and interest, without presentment, demand, or protest, all of which are
hereby expressly waived, anything contained herein or in the Note or other evidence of such obligations to the contrary notwithstanding.

 

6.
All notices, demands, requests or other communications given hereunder or in connection herewith shall be in writing and either
mailed, sent by nationally recognized overnight courier service, or personally delivered, addressed to the party to receive such
notice at such party’s address set forth below or at such other address as such party may hereafter designate by notice
given in like fashion:

 

If
to the Lender:

 

Dr.
Luis Duarte

1930
Valley View

San
Angelo, Texas 76904

 

If
to the Guarantor:

 

Mark
Adams

6001
Cervinus Run

Austin,
Texas 78735

 

or,
as to each party, at such other address as shall be designated by such parties in a written notice to the other party complying
as to delivery with the terms of this Section. All such notices, requests, demands and other communication shall be deemed given
upon receipt by the party to whom such notice is directed.

 

7.
Each party to this Guaranty acknowledges that it has engaged such party’s own legal counsel in connection with the transactions
described in this Guaranty to the extent such party desires, or has knowingly and voluntarily waived its right to do so.

 

8.
All rights and remedies afforded to the Lender by reason of this Guaranty and the Loan Documents, or by law are separate and cumulative
and the exercise of one shall not in any way limit or prejudice the exercise of any other such rights or remedies. No delay or
omission by the Guarantor in exercising any such right or remedy shall operate as a waiver thereof. No waiver of any rights and
remedies hereunder, and no modification or amendment hereof, shall be deemed made by the Guarantor unless in writing and duly
executed. Any such written waiver shall apply only to the particular instance specified therein and shall not impair the further
exercise of such right or remedy or of any other right or remedy of the Guarantor, and no single or partial exercise of any right
or remedy hereunder shall preclude further exercise of any other right or remedy.

 

    	 

    	 	 

    

 

9.
The obligations of the Guarantor to make payment in accordance with the terms of this Guaranty shall not be impaired, modified,
changed, released or limited in any manner whatsoever by any impairment, modification, change, release or limitation of the liability
of either Borrower or their respective estates, in bankruptcy or reorganization resulting from the operation of any present or
future provision of the Federal Bankruptcy Act or other statute or from the decision of any court.

 

10.
THE GUARANTOR, TO THE EXTENT THAT THE GUARANTOR MAY LAWFULLY DO SO, HEREBY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE
OF TEXAS (COLLECTIVELY, THE “DESIGNATED JURISDICTIONS”, WHETHER ONE OR MORE) AND THE UNITED STATES DISTRICT
COURTS HAVING JURISDICTION OR SITTING IN THE DESIGNATED JURISDICTIONS, AS WELL AS TO THE JURISDICTION OF ALL COURTS FROM WHICH
AN APPEAL MAY BE TAKEN FROM THE AFORESAID COURTS, FOR THE PURPOSE OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THE GUARANTOR’S
OBLIGATIONS UNDER OR WITH RESPECT TO THIS GUARANTY. UNLESS THE LENDER AT LENDER’S OPTION SHALL INITIATE LEGAL OR EQUITABLE
PROCEEDINGS IN ANOTHER COURT HAVING SUBJECT MATTER JURISDICTION OVER THE CONTROVERSY, ALL ACTIONS ARISING OUT OF OR UNDER THIS
GUARANTY SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURT LOCATED IN THE COUNTY OF TRAVIS, STATE OF TEXAS. THE
GUARANTOR EXPRESSLY WAIVES ANY AND ALL OBJECTIONS THE GUARANTOR MAY HAVE AS TO VENUE IN ANY OF SUCH COURTS. THE GUARANTOR AND
THE LENDER ALSO WAIVES TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS GUARANTY AND AGREES THAT IN THE EVENT THIS
GUARANTY SHALL BE ENFORCED BY SUIT OR OTHERWISE, OR IF THE LENDER SHALL EXERCISE OR ENDEAVOR TO EXERCISE ANY OF THEIR REMEDIES
UNDER THE LOAN DOCUMENTS OR GUARANTY, THE GUARANTOR WILL REIMBURSE THE LENDER, UPON DEMAND, FOR ALL EXPENSES AND DAMAGES INCURRED
IN CONNECTION THEREWITH, INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES.

 

11.
This Guaranty is made in order to induce the Lender to enter into the aforesaid loan transactions and to make said loan to the
Borrower and in consideration of the premises and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged

 

12.
THIS GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO CONTRACTS MADE AND PERFORMED
IN SAID STATE, WITHOUT REFRENCE TO PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD PERMIT OR REQUIRE THE APPLICATION OF THE LAW OF
ANY JURISDICTION OTHER THAN THAT OF THE STATE OF TEXAS.

 

13.
This Guaranty shall inure to the benefit of, and be enforceable by, the Lender and their successors and assigns, and shall be
binding upon, and enforceable against, the Guarantor and his heirs, successors and assigns.

 

14.
In case this Guaranty or any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof,
and this Guaranty shall be construed as if such invalid, illegal or unenforceable provision had never been included.

 

[[Signature
Page Follows]]

 

    	 

    	 	 

    

 

IN
WITNESS WHEREOF, the Guarantor has executed this Guaranty as of the day and year first above written.

 

	/s/
    Mark Adams	 
	Mark
    Adams	 

 

STATE
OF ___________________

COUNTY
OF _________________

 

The
foregoing instrument was acknowledged before me this ____ day of_____________, by ______________________________, who is personally
known to me or who has produced ___________________________ as identification.

 

	 	 
	 	Notary
Public

Print
Name:

My
commission expires:Exhibit
10.4

 

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and entered into as of [_________ __, 2020, between
DropCar, Inc., a Delaware corporation (the “Company”), and each of the several holders of Registrable Securities
(as defined herein) signatory hereto (each such purchaser, a “Holder” and, collectively, the “Holders”).

 

This
Agreement is made pursuant to the Loan and Security Agreement, dated as of December __, 2019, between Ayro, Inc. and each Holder
(the “Purchase Agreement”).

 

The
Company and each Holder hereby agrees as follows:

 

1.
Definitions.

 

Capitalized
terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms
in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 6(d).

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 90th
calendar day following the date hereof (or, in the event of a “full review” by the Commission, the 120th
calendar day following the date hereof) and with respect to any additional Registration Statements which may be required pursuant
to Section 2(c) or Section 3(c), the 30th calendar day following the date on which an additional Registration Statement
is required to be filed hereunder (or, in the event of a “full review” by the Commission, the 90th calendar
day following the date such additional Registration Statement is required to be filed hereunder); provided, however,
that in the event the Company is notified by the Commission that one or more of the above Registration Statements will not be
reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such Registration Statement shall
be the fifth Trading Day following the date on which the Company is so notified if such date precedes the dates otherwise required
above, provided, further, if such Effectiveness Date falls on a day that is not a Trading Day, then the Effectiveness Date shall
be the next succeeding Trading Day.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Event”
shall have the meaning set forth in Section 2(d).

 

“Event
Date” shall have the meaning set forth in Section 2(d).

 

    	 	 	 

     

    

 

“Filing
Date” means, with respect to the Initial Registration Statement required hereunder, the 90th calendar day
following the date hereof and, with respect to any additional Registration Statements which may be required pursuant to Section
2(c) or Section 3(c), the earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration
Statement related to the Registrable Securities.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Plan
of Distribution” shall have the meaning set forth in Section 2(a).

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus.

 

    	 	2	 

     

    

 

“Registrable
Securities” means, as of any date of determination, (a) all Shares of the shares of Common Stock then issued and issuable
upon conversion in full of the Term Loans, (b) all Warrant Shares then issued and issuable upon exercise of the Warrants (assuming
on such date the Warrants are exercised in full without regard to any exercise limitations therein), (c) any additional shares
of Common Stock issued and issuable in connection with any anti-dilution provisions in the Warrants (in each case, without giving
effect to any limitations on exercise set forth in the Warrants) and (d) any securities issued or then issuable upon any stock
split, dividend or other distribution, recapitalization or similar event with respect to the foregoing; provided, however,
that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain
the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (i) a Registration
Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities
Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective Registration Statement,
(ii) such Registrable Securities have been previously sold in accordance with Rule 144, iii) such securities become eligible for
resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth
in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders
(assuming that such securities and any securities issuable upon exercise, conversion or exchange of which, or as a dividend upon
which, such securities were issued or are issuable, were at no time held by any Affiliate of the Company, and all Warrants are
exercised by “cashless exercise” as provided in Section 2(c) of each of the Warrants, as reasonably determined by
the Company, upon the advice of counsel to the Company, or (iv) the issuance of the Registrable Securities are registered under
a Registration Statement on Form S-4 in connection with the Acquisition Transaction.

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional
registration statements contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and
supplements to any such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by reference in any such registration statement.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Selling
Stockholder Questionnaire” shall have the meaning set forth in Section 3(a).

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements
or requests of the Commission staff and (ii) the Securities Act.

 

    	 	3	 

     

    

 

2.
Shelf Registration.

 

(a)
On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the
resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering
to be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-3 (except
if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration
shall be on another appropriate form in accordance herewith, subject to the provisions of Section 2(e)) and shall contain (unless
otherwise directed by at least 85% in interest of the Holders) substantially the “Plan of Distribution” attached
hereto as Annex A and substantially the “Selling Stockholder” section attached hereto as Annex B;
provided, however, that no Holder shall be required to be named as an “underwriter” without such Holder’s
express prior written consent. Subject to the terms of this Agreement, the Company shall use its best efforts to cause a Registration
Statement filed under this Agreement (including, without limitation, under Section 3(c)) to be declared effective under the Securities
Act as promptly as possible after the filing thereof, but in any event no later than the applicable Effectiveness Date, and shall
use its best efforts to keep such Registration Statement continuously effective under the Securities Act until the date that all
Registrable Securities covered by such Registration Statement (i) have been sold, thereunder or pursuant to Rule 144, or (ii)
may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to
be in compliance with the current public information requirement under Rule 144, as determined by the counsel to the Company pursuant
to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected Holders (the “Effectiveness
Period”). The Company shall telephonically request effectiveness of a Registration Statement as of 5:00 p.m. (New York
City time) on a Trading Day. The Company shall immediately notify the Holders via facsimile or by e-mail of the effectiveness
of a Registration Statement on the same Trading Day that the Company telephonically confirms effectiveness with the Commission,
which shall be the date requested for effectiveness of such Registration Statement. The Company shall, by 9:30 a.m. (New York
City time) on the Trading Day after the effective date of such Registration Statement, file a final Prospectus with the Commission
as required by Rule 424. Failure to so notify the Holder within one (1) Trading Day of such notification of effectiveness or failure
to file a final Prospectus as foresaid shall be deemed an Event under Section 2(d).

 

(b)
Notwithstanding the registration obligations set forth in Section 2(a), if the Commission informs the Company that all of the
Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on
a single registration statement, the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable
efforts to file amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of
Registrable Securities permitted to be registered by the Commission, on Form S-3 or such other form available to register for
resale the Registrable Securities as a secondary offering, subject to the provisions of Section 2(e); with respect to filing on
Form S-3 or other appropriate form, and subject to the provisions of Section 2(d) with respect to the payment of liquidated damages;
provided, however, that prior to filing such amendment, the Company shall be obligated to use diligent efforts to
advocate with the Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including
without limitation, Compliance and Disclosure Interpretation 612.09.

 

    	 	4	 

     

    

 

(c)
Notwithstanding any other provision of this Agreement and subject to the payment of liquidated damages pursuant to Section 2(d),
if the Commission or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered
on a particular Registration Statement as a secondary offering (and notwithstanding that the Company used diligent efforts to
advocate with the Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise directed
in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration
Statement will be reduced as follows:

 

	 	a.	First,
    the Company shall reduce or eliminate any securities to be included other than Registrable Securities;
	 	 	 
	 	b.	Second,
    the Company shall reduce Registrable Securities represented by Warrant Shares (applied, in the case that some Warrant Shares
    may be registered, to the Holders on a pro rata basis based on the total number of unregistered Warrant Shares held by such
    Holders); and
	 	 	 
	 	c.	Third,
    the Company shall reduce Registrable Securities represented by Conversion Shares (applied, in the case that some Conversion
    Shares may be registered, to the Holders on a pro rata basis based on the total number of unregistered Conversion Shares held
    by such Holders).

 

In
the event of a cutback hereunder, the Company shall give the Holder at least five (5) Trading Days prior written notice along
with the calculations as to such Holder’s allotment. In the event the Company amends the Initial Registration Statement
in accordance with the foregoing, the Company will use its best efforts to file with the Commission, as promptly as allowed by
Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements
on Form S-3 or such other form available to register for resale those Registrable Securities that were not registered for resale
on the Initial Registration Statement, as amended.

 

    	 	5	 

     

    

 

(d)
If: (i) the Initial Registration Statement is not filed on or prior to its Filing Date (if the Company files the Initial Registration
Statement without affording the Holders the opportunity to review and comment on the same as required by Section 3(a) herein,
the Company shall be deemed to have not satisfied this clause (i)), or (ii) the Company fails to file with the Commission a request
for acceleration of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities
Act, within five Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission
that such Registration Statement will not be “reviewed” or will not be subject to further review, or (iii) prior to
the effective date of a Registration Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing
to comments made by the Commission in respect of such Registration Statement within ten (10) calendar days after the receipt of
comments by or notice from the Commission that such amendment is required in order for such Registration Statement to be declared
effective, or (iv) a Registration Statement registering for resale all of the Registrable Securities is not declared effective
by the Commission by the Effectiveness Date of the Initial Registration Statement, or (v) after the effective date of a Registration
Statement, such Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities
included in such Registration Statement, or the Holders are otherwise not permitted to utilize the Prospectus therein to resell
such Registrable Securities, for more than ten (10) consecutive calendar days or more than an aggregate of fifteen (15) calendar
days (which need not be consecutive calendar days) during any 12-month period (any such failure or breach being referred to as
an “Event”, and for purposes of clauses (i) and (iv), the date on which such Event occurs, and for purpose
of clause (ii) the date on which such five (5) Trading Day period is exceeded, and for purpose of clause (iii) the date which
such ten (10) calendar day period is exceeded, and for purpose of clause (v) the date on which such ten (10) or fifteen (15) calendar
day period, as applicable, is exceeded being referred to as “Event Date”), then, in addition to any other rights
the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event
Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay
to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of 2.0% multiplied
by the aggregate principal amount of the Term Loan extended by the Holder to AYRO, Inc.. The parties agree that the maximum aggregate
liquidated damages payable to a Holder under this Agreement shall be 12% of the Term Loan extended by each Holder. If the Company
fails to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable, the Company
will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable
law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest
thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro rata basis for
any portion of a month prior to the cure of an Event.

 

(e)
If Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i) register
the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities
on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration
Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been
declared effective by the Commission.

 

    	 	6	 

     

    

 

(f)
Notwithstanding anything to the contrary contained herein, in no event shall the Company be permitted to name any Holder or affiliate
of a Holder as any Underwriter without the prior written consent of such Holder.

 

3.
Registration Procedures.

 

In
connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)
Not less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated
or deemed to be incorporated therein by reference), the Company shall (i) furnish to each Holder copies of all such documents
proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject
to the review of such Holders, and (ii) cause its officers and directors, counsel and independent registered public accountants
to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct
a reasonable investigation within the meaning of the Securities Act. The Company shall not file a Registration Statement or any
such Prospectus or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall
reasonably object in good faith, provided that, the Company is notified of such objection in writing no later than five (5) Trading
Days after the Holders have been so furnished copies of a Registration Statement or one (1) Trading Day after the Holders have
been so furnished copies of any related Prospectus or amendments or supplements thereto. Each Holder agrees to furnish to the
Company a completed questionnaire in the form attached to this Agreement as Annex B (a “Selling Stockholder Questionnaire”)
on a date that is not less than two (2) Trading Days prior to the Filing Date or by the end of the fourth (4th) Trading
Day following the date on which such Holder receives draft materials in accordance with this Section.

 

(b)
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and
the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to
the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and,
as so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments
received from the Commission with respect to a Registration Statement or any amendment thereto and provide as promptly as reasonably
possible to the Holders true and complete copies of all correspondence from and to the Commission relating to a Registration Statement
(provided that, the Company shall excise any information contained therein which would constitute material non-public information
regarding the Company or any of its Subsidiaries), and (iv) comply in all material respects with the applicable provisions of
the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration
Statement during the applicable period in accordance (subject to the terms of this Agreement) with the intended methods of disposition
by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

 

    	 	7	 

     

    

 

(c)
If during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common
Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case
prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than
the number of such Registrable Securities.

 

(d)
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested
by any such Person) confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus
or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission
notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments
in writing on such Registration Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when
the same has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for
amendments or supplements to a Registration Statement or Prospectus or for additional information, (iii) of the issuance by the
Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose, (iv) of the
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration
Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (vi) of
the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be
material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability
of a Registration Statement or Prospectus; provided, however, that in no event shall any such notice contain any
information which would constitute material, non-public information regarding the Company or any of its Subsidiaries.

 

    	 	8	 

     

    

 

(e)
Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any
of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(f)
Furnish to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to
the extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished
or incorporated by reference) promptly after the filing of such documents with the Commission, provided that any such item which
is available on the EDGAR system (or successor thereto) need not be furnished in physical form.

 

(g)
Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).

 

(h)
Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement, provided that the Company shall not
be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to
any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any
such jurisdiction.

 

    	 	9	 

     

    

 

(i)
If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free,
to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be
in such denominations and registered in such names as any such Holder may request.

 

(j)
Upon the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking
into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the
premature disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration
Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference,
and file any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will
contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies
the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any Prospectus until the
requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will use
its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company shall be entitled
to exercise its right under this Section 3(j) to suspend the availability of a Registration Statement and Prospectus, subject
to the payment of partial liquidated damages otherwise required pursuant to Section 2(d), for a period not to exceed 60 calendar
days (which need not be consecutive days) in any 12-month period.

 

(k)
Otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission under the
Securities Act and the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus,
including any supplement or amendment thereof, with the Commission pursuant to Rule 424 under the Securities Act, promptly inform
the Holders in writing if, at any time during the Effectiveness Period, the Company does not satisfy the conditions specified
in Rule 172 and, as a result thereof, the Holders are required to deliver a Prospectus in connection with any disposition of Registrable
Securities and take such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities
hereunder.

 

    	 	10	 

     

    

 

(l)
The Company shall use its best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto) for the registration
of the resale of Registrable Securities.

 

(m)
The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common
Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration
of the Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company’s
request, any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise
occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

 

4.
Registration Expenses. All fees and expenses incident to the performance of or compliance with, this Agreement by the Company
shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect
to filings made with the Commission, (B) with respect to filings required to be made with any Trading Market on which the Common
Stock is then listed for trading, and (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to
by the Company in writing (including, without limitation, fees and disbursements of counsel for the Company in connection with
Blue Sky qualifications or exemptions of the Registrable Securities), (ii) printing expenses (including, without limitation, expenses
of printing certificates for Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements
of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and
expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by
this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred
in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. In no event shall
the Company be responsible for any broker or similar commissions of any Holder or, except to the extent provided for in the Transaction
Documents, any legal fees or other costs of the Holders.

 

    	 	11	 

     

    

 

5.
Indemnification.

 

(a)
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable
Securities as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors
and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack
of such title or any other title) of each of them, each Person who controls any such Holder (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents
and employees (and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack
of such title or any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees)
and expenses (collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged
untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or
supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection
with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue
statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method
of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use
in a Registration Statement, such Prospectus or in any amendment or supplement thereto (it being understood that the Holder has
approved Annex A hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi),
the use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder
in writing that the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt
by such Holder of the Advice contemplated in Section 6(d). The Company shall notify the Holders promptly of the institution, threat
or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the
Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of
such indemnified person and shall survive the transfer of any Registrable Securities by any of the Holders in accordance with
Section 6(h).

 

    	 	12	 

     

    

 

(b)
Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its
directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the
fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely
upon: any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in
any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus
or supplement thereto, in light of the circumstances under which they were made) not misleading (i) to the extent, but only to
the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the
Company expressly for inclusion in such Registration Statement or such Prospectus or (ii) to the extent, but only to the extent,
that such information relates to such Holder’s information provided in the Selling Stockholder Questionnaire or the proposed
method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for
use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus
or in any amendment or supplement thereto. In no event shall the liability of a selling Holder be greater in amount than the dollar
amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the
amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission) received
by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification
obligation.

 

(c)
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity
is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all
fees and expenses incurred in connection with defense thereof, provided that the failure of any Indemnified Party to give such
notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only)
to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to
appeal or further review) that such failure shall have materially and adversely prejudiced the Indemnifying Party.

 

    	 	13	 

     

    

 

An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or
(3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party,
the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more
than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed.
No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

Subject
to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses
to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with
this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying
Party, provided that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is finally determined by a court of competent jurisdiction (which
determination is not subject to appeal or further review) not to be entitled to indemnification hereunder.

 

(d)
Contribution. If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient
to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable
by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified
Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among
other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party
or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include,
subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other fees or expenses incurred by
such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if
the indemnification provided for in this Section was available to such party in accordance with its terms.

 

    	 	14	 

     

    

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by
pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred
to in the immediately preceding paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities
be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim
relating to this Section 5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving
rise to such contribution obligation.

 

The
indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties
may have to the Indemnified Parties.

 

6.
Miscellaneous.

 

(a)
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement,
each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each
of the Company and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by
reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action
for specific performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would
be adequate.

 

(b)
No Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Except as set forth on Schedule
6(b) attached hereto, neither the Company nor any of its security holders (other than the Holders in such capacity pursuant
hereto) may include securities of the Company in any Registration Statements other than the Registrable Securities. The Company
shall not file any other registration statements until all Registrable Securities are registered pursuant to a Registration Statement
that is declared effective by the Commission, provided that this Section 6(b) shall not prohibit the Company from filing amendments
to registration statements filed prior to the date of this Agreement.

 

(c)
[RESERVED]

 

    	 	15	 

     

    

 

(d)
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder will forthwith
discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company
will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company agrees
and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable Securities
hereunder shall be subject to the provisions of Section 2(d).

 

(e)
Piggy-Back Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration Statement
covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration
statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection
with the Company’s stock option or other employee benefit plans, then the Company shall deliver to each Holder a written
notice of such determination and, if within fifteen days after the date of the delivery of such notice, any such Holder shall
so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities
such Holder requests to be registered; provided, however, that the Company shall not be required to register any
Registrable Securities pursuant to this Section 6(e) that are eligible for resale pursuant to Rule 144 (without volume restrictions
or current public information requirements) promulgated by the Commission pursuant to the Securities Act or that are the subject
of a then effective Registration Statement that is available for resales or other dispositions by such Holder.

 

(f)
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall
be in writing and signed by the Company and the Holders of 50.1% or more of the then outstanding Registrable Securities (for purposes
of clarification, this includes any Registrable Securities issuable upon exercise or conversion of any Security), provided that,
if any amendment, modification or waiver disproportionately and adversely impacts a Holder (or group of Holders), the consent
of such disproportionately impacted Holder (or group of Holders) shall be required. If a Registration Statement does not register
all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence, then the number
of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each Holder shall have
the right to designate which of its Registrable Securities shall be omitted from such Registration Statement. Notwithstanding
the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the
rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders may be given only
by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however,
that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of
the first sentence of this Section 6(f). No consideration shall be offered or paid to any Person to amend or consent to a waiver
or modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to this
Agreement.

 

    	 	16	 

     

    

 

(g)
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be delivered as set forth in the Purchase Agreement.

 

(h)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights
or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities.

 

(i)
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall
the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Except as set forth on Schedule 6(i), neither the Company nor any of its Subsidiaries has previously entered into
any agreement granting any registration rights with respect to any of its securities to any Person that have not been satisfied
in full.

 

(j)
Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

(k)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be determined in accordance with the provisions of the Purchase Agreement.

 

(l)
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(m)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

    	 	17	 

     

    

 

(n)
Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall
not be deemed to limit or affect any of the provisions hereof.

 

(o)
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not
joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership,
an association, a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way
acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement
or any other matters, and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company shall
not assert any such claim, with respect to such obligations or transactions. Each Holder shall be entitled to protect and enforce
its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other
Holder to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the
obligations of the Company contained was solely in the control of the Company, not the action or decision of any Holder, and was
done solely for the convenience of the Company and not because it was required or requested to do so by any Holder. It is expressly
understood and agreed that each provision contained in this Agreement is between the Company and a Holder, solely, and not between
the Company and the Holders collectively and not between and among Holders.

 

********************

 

(Signature
Pages Follow)

 

    	 	18	 

     

    

 

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

 

	 	dropcar,
    inc.
	 	 	 
	 	By:	           
	 	Name:	 
	 	Title:	 

 

[SIGNATURE
PAGE OF HOLDERS FOLLOWS]

 

    	 	 	 

     

    

 

[SIGNATURE
PAGE OF HOLDERS TO DCAR RRA]

 

Name
of Holder: __________________________

 

Signature
of Authorized Signatory of Holder: __________________________

 

Name
of Authorized Signatory: _________________________

 

Title
of Authorized Signatory: __________________________

 

[SIGNATURE
PAGES CONTINUE]

 

    	 	 	 

     

    

 

Annex
A

 

Plan
of Distribution

 

Each
Selling Stockholder (the “Selling Stockholders”) of the securities and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their securities covered hereby on the principal Trading Market
or any other stock exchange, market or trading facility on which the securities are traded or in private transactions. These sales
may be at fixed or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling securities:

 

	 	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	●	block
    trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the
    block as principal to facilitate the transaction;
	 	 	 
	 	●	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 
	 	●	an
    exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 
	 	●	privately
    negotiated transactions;
	 	 	 
	 	●	settlement
    of short sales;
	 	 	 
	 	●	in
    transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number of such securities
    at a stipulated price per security;
	 	 	 
	 	●	through
    the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
	 	 	 
	 	●	a
    combination of any such methods of sale; or
	 	 	 
	 	●	any
    other method permitted pursuant to applicable law.

 

The
Selling Stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act
of 1933, as amended (the “Securities Act”), if available, rather than under this prospectus.

 

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities,
from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an
agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a
principal transaction a markup or markdown in compliance with FINRA IM-2440.

 

    	 	 	 

     

    

 

In
connection with the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage in short sales of the securities in the course of
hedging the positions they assume. The Selling Stockholders may also sell securities short and deliver these securities to close
out their short positions, or loan or pledge the securities to broker-dealers that in turn may sell these securities. The Selling
Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one
or more derivative securities which require the delivery to such broker-dealer or other financial institution of securities offered
by this prospectus, which securities such broker-dealer or other financial institution may resell pursuant to this prospectus
(as supplemented or amended to reflect such transaction).

 

The
Selling Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the securities.

 

The
Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the securities. The
Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act.

 

We
agreed to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling
Stockholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without
the requirement for the Company to be in compliance with the current public information under Rule 144 under the Securities Act
or any other rule of similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under
the Securities Act or any other rule of similar effect. The resale securities will be sold only through registered or licensed
brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale securities covered
hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the
registration or qualification requirement is available and is complied with.

 

Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not
simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined
in Regulation M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable
provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of
purchases and sales of the common stock by the Selling Stockholders or any other person. We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser
at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

 

    	 	2	 

     

    

 

SELLING
SHAREHOLDERS

 

The
common stock being offered by the selling shareholders are those previously issued to the selling shareholders, and those issuable
to the selling shareholders, upon exercise of the warrants. For additional information regarding the issuances of those shares
of common stock and warrants, see “Private Placement of Shares of Common Stock and Warrants” above. We are registering
the shares of common stock in order to permit the selling shareholders to offer the shares for resale from time to time. Except
for the ownership of the shares of common stock and the warrants, the selling shareholders have not had any material relationship
with us within the past three years.

 

The
table below lists the selling shareholders and other information regarding the beneficial ownership of the shares of common stock
by each of the selling shareholders. The second column lists the number of shares of common stock beneficially owned by each selling
shareholder, based on its ownership of the shares of common stock and warrants, as of ________, 2020, assuming exercise of the
warrants held by the selling shareholders on that date, without regard to any limitations on exercises.

 

The
third column lists the shares of common stock being offered by this prospectus by the selling shareholders.

 

In
accordance with the terms of a registration rights agreement with the selling shareholders, this prospectus generally covers the
resale of the sum of (i) the number of shares of common stock issued to the selling shareholders in the “Private Placement
of Shares of Common Stock and Warrants” described above and (ii) the maximum number of shares of common stock issuable upon
exercise of the related warrants, determined as if the outstanding warrants were exercised in full as of the trading day immediately
preceding the date this registration statement was initially filed with the SEC, each as of the trading day immediately preceding
the applicable date of determination and all subject to adjustment as provided in the registration right agreement, without regard
to any limitations on the exercise of the warrants. The fourth column assumes the sale of all of the shares offered by the selling
shareholders pursuant to this prospectus.

 

Under
the terms of the warrants, a selling shareholder may not exercise the warrants to the extent such exercise would cause such selling
shareholder, together with its affiliates and attribution parties, to beneficially own a number of shares of common stock which
would exceed [4.99]% of our then outstanding common stock following such exercise, excluding for purposes of such determination
shares of common stock issuable upon exercise of the warrants which have not been exercised. The number of shares in the second
column does not reflect this limitation. The selling shareholders may sell all, some or none of their shares in this offering.
See “Plan of Distribution.”

 

	 

         

         

        Name
        of Selling Shareholder
	 	Number
    of shares of Common Stock Owned Prior to Offering	 	Maximum
                                         Number of

                           shares
                           of Common Stock

                           to
                           be Sold Pursuant to this Prospectus
	 	Number
    of shares of Common Stock Owned After Offering
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	3	 

     

    

 

Annex
C

 

dropcar,
inc.

 

Selling
Stockholder Notice and Questionnaire

 

The
undersigned beneficial owner of common stock (the “Registrable Securities”) of DropCar, Inc., a Delaware corporation
(the “Company”), understands that the Company has filed or intends to file with the Securities and Exchange
Commission (the “Commission”) a registration statement (the “Registration Statement”) for
the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”),
of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration Rights
Agreement”) to which this document is annexed. A copy of the Registration Rights Agreement is available from the Company
upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Registration Rights Agreement.

 

Certain
legal consequences arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the
consequences of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The
undersigned beneficial owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include
the Registrable Securities owned by it in the Registration Statement.

 

    	 	 	 

     

    

 

The
undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

	1.	Name.	
	 	 	 
	 	(a)	Full
    Legal Name of Selling Stockholder
	 	 	 
	 	 	 
	 	(b)	Full
    Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities are held:
	 	 	 
	 	 	 
	 	(c)	Full
    Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power
    to vote or dispose of the securities covered by this Questionnaire):
	 	 	 

 

2.
Address for Notices to Selling Stockholder:

 

	 
	 
	 
	  Telephone:______________________________________________________________________________________
	  Fax:________________________________________________________________________________
	  Contact
    Person:

 

3.
Broker-Dealer Status:

 

	 	(a)	Are
    you a broker-dealer?

 

	Yes
    [  ] 	No
    [  ]

 

	 	(b)	If
    “yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services
    to the Company?

 

	Yes
    [  ] 	No
    [  ]

 

	 	Note:	If
    “no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter
    in the Registration Statement.

 

    	 	2	 

     

    

 

 

	 	(c)	Are
    you an affiliate of a broker-dealer?

 

	Yes
    [  ] 	No
    [  ]

 

	 	(d)	If
    you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities in the ordinary course
    of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings,
    directly or indirectly, with any person to distribute the Registrable Securities?

 

	Yes
    [  ] 	No
    [  ]

 

	 	Note:	If
    “no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter
    in the Registration Statement.

 

4.
Beneficial Ownership of Securities of the Company Owned by the Selling Stockholder.

 

Except
as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company
other than the securities issuable pursuant to the Purchase Agreement.

 

	 	(a)	Type
    and Amount of other securities beneficially owned by the Selling Stockholder:

 

	 	 
	 	 

 

    	 	3	 

     

    

 

5.
Relationships with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners
of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship
with the Company (or its predecessors or affiliates) during the past three years.

 

State
any exceptions here:

 

	 	 
	 	 

 

The
undersigned agrees to promptly notify the Company of any material inaccuracies or changes in the information provided herein that
may occur subsequent to the date hereof at any time while the Registration Statement remains effective; provided, that the undersigned
shall not be required to notify the Company of any changes to the number of securities held or owned by the undersigned or its
affiliates.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through
5 and the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements
thereto. The undersigned understands that such information will be relied upon by the Company in connection with the preparation
or amendment of the Registration Statement and the related prospectus and any amendments or supplements thereto.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	Date:
    		 	Beneficial
    Owner: 	

 

	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

PLEASE
FAX A COPY (OR EMAIL A .PDF COPY) OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

 

    	 	4

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