Document:

SENIOR SECURED PROMISSORY NOTE

 

$156,000.00March 23, 2016

 

FOR VALUE RECEIVED, Santino
Walter Productions, LLC, a Colorado limited liability company, its successors and assigns ("Maker"), hereby promises
to pay to the order of MassRoots, Inc., a Delaware corporation, or its successors or assigns ("Payee"), the amount of
ONE HUNDRED and FIFTY SIX THOUSAND DOLLARS ($156,000.00), the “Note”):

 

	1.		Original Issuance Discount Note. This Note is an original issuance discount
note based on gross proceeds loaned by the Payee to the Maker of $130,000 on the issuance date hereof.

	2.		Payments. All unpaid principal and all other amounts payable hereunder shall
be due and payable no later than sixty (60) days from the date of issuance of this Note (“Maturity Date”).

	3.		Prepayment. Maker may prepay all or any portion of the unpaid principal balance
of this Note at any time, or from time to time, without penalty or premium.

	4.		Application and Place of Payments. Payments received by Payee with respect
to the indebtedness evidenced hereby shall be applied in such order and manner as Payee in its sole and absolute discretion may
elect. Unless Payee otherwise elects, payments received by Payee shall be applied first to the principal balance then outstanding
hereunder, and the remainder to Additional Sums (as hereinafter defined) or other costs or added charges provided for in this
Note. Payments hereunder shall be made at the address for Payee set forth below or at such other address as Payee may specify
to Maker in writing.

	5.		Security. This Note is secured by the assets of the Maker. The Maker hereby
grants and otherwise pledges to the Payee a continuing security interest in all of the present and future rights, title and interests
of the Maker in and to certain property, and each item thereof, all whether now or hereafter existing, or owned or acquired by
the Maker, or now or hereafter arising or due or to become due, wherever such property may be located, together with all substitutions
for, replacements of, additions to, accessions to, and products, proceeds and records of any and all of the following property
listed on Exhibit A attached hereto (collectively, the “Collateral”).

	6.		Events of Default; Acceleration. The occurrence of any one or more of the following
events shall constitute an "Event of Default" hereunder, and upon such Event of Default, the entire principal balance
outstanding hereunder, and other amounts payable hereunder, at the election of Payee, shall become immediately due and payable,
without any notice to Maker, provided that in the case of any of the Events of Default in paragraphs (b), (c) or (d) below, the
remainder of the debt evidenced hereby shall automatically become due and payable, without presentment, demand, protest or any
other notice of any kind, all of which are hereby expressly waived by Maker:

	a.		Nonpayment of principal, or other amounts when the same shall become due and payable
hereunder; or

	b.		The failure of Maker to comply with any provision of this Note; or

	c.		Breach by the Maker of any representation, warranty or other provision contained in
that certain Letter Agreement or License Agreement between the Maker and the Payee, dated as of the date hereof; or

	d.		The dissolution, winding-up, liquidation or termination of the existence of Maker
or the sale or disposition of substantially all of the assets of Maker's business; or

	e.		The making by Maker of an assignment for the benefit of its creditors; or

	f.		The appointment of a receiver for Maker or the involuntary filing against Maker, which
is not stayed or dismissed within 30 days of filing, or the voluntary filing by Maker of a petition or application for relief
under federal bankruptcy law or any similar state or federal law.

	7.		Contracted For Interest.

	a.		Maker agrees to pay an effective contracted amounts as provided in this Note, plus
the amounts resulting from the Additional Sums. The Additional Sums shall consist of all fees, charges, goods, things in action,
or any other sums or things of value paid or payable by Maker, pursuant to this Note, that may be deemed to be interest for the
purpose of any law of the state of Delaware that may limit the maximum amount of interest to be charged with respect to this lending
transaction. The Additional Sums shall be deemed to be interest for the purposes of any such law only.

	b.		Maker understands and believes that this transaction complies with the usury laws
of the state of Delaware; however, if any other charges in connection with this transaction are ever determined to exceed the
maximum amount permitted by law, then Maker agrees that (i) the amount of interest or charges payable pursuant to this transaction
shall be reduced to the maximum amount permitted by law; and (ii) any excess amount previously collected from Maker in connection
with this transaction, which exceeded the maximum amount permitted by law, will be credited against the principal balance then
outstanding hereunder. If the outstanding principal balance hereunder has been paid in full, the excess amount paid will be refunded
to Maker.

	8.		Costs of Collection. Maker agrees to pay all costs of collection, including,
without limitation, attorneys' fees, whether or not suit is filed, and all costs of suit and preparation for suit (whether at
trial or appellate level), in the event any payment of principal, or other amount is not paid when due, or if at any time Payee
should incur any attorneys' fees in any proceeding under any federal bankruptcy law (or any similar state or federal law) in connection
with the obligations evidenced hereby. In the event of any court proceeding, court costs and attorneys' fees shall be set by the
court and not by the jury and shall be included in any judgment obtained by Payee.

	9.		No Waiver by Payee. Maker hereby waives presentment, protest, notice of dishonor,
and notice of acceleration of maturity. No failure to accelerate the debt evidenced hereby by reason of default hereunder, acceptance
of a past-due installment, or other indulgence granted from time to time shall be construed as a novation of this Note or as a
waiver of such right of acceleration or of the right of Payee thereafter to insist upon strict compliance with the terms of this
Note or to prevent the exercise of such right of acceleration or any other right granted hereunder or by applicable law. No extension
of the time for payment of this Note shall operate to release, discharge, modify, change or affect the original liability of Maker
under this Note, either in whole or in part, unless Payee agrees otherwise in writing. Maker agrees to continue to remain bound
for the payment of principal, interest, and all other sums due under this Note notwithstanding any changes by way of release,
surrender, exchange, modification, substitution of, failure to perfect or maintain perfection of any security for this Note. No
delay or failure of Payee in exercising any right hereunder shall affect such right, nor shall any single or partial exercise
of any right preclude further exercise thereof.

	10.		Governing Law. This Note shall be construed in accordance with and governed
by the laws of the state of Delaware without regard to the choice of law rules of the state of Colorado.

	11.		Time of Essence. Time is of the essence of this Note and each and every provision
hereof.

	12.		Conflicts; Inconsistency. In the event of any conflict or inconsistency between
the provisions of this Note and the provisions of any one or more of the other documents executed in connection with this transaction,
the provisions of this Note shall govern and control to the extent necessary to resolve such conflict or inconsistency.

	13.		Amendments. No amendment, modification, change, waiver, release, or discharge
hereof and hereunder shall be effective unless evidenced by an instrument in writing and signed by the party against whom enforcement
is sought.

	14.		Severability. The invalidity of any provision of this Note or portion of a
provision shall not affect the validity of any other provision of this Note or the remaining portion of the applicable provision.

	15.		Binding Nature. The provisions of this Note shall be binding upon and inure
to the benefit of Maker and Payee and their respective heirs, personal representatives, successors, and assigns, as applicable.

	16.		Notices. All notices, requests, demands, and other communications required
or permitted under this Note shall be in writing and shall be deemed to have been duly given, made, and received when delivered
against receipt, upon receipt of a facsimile transmission, or upon actual receipt of registered or certified mail, postage prepaid,
return receipt requested, addressed as set forth below:

If to Maker:

Santino Walter Productions

c/o Robert J. Corry, Jr.,
General Counsel

Law Office of Corry &
Associates

437 West Colfax Ave.,
Suite 300

Denver, CO 80204

 

If to Payee:

MassRoots, Inc.

1624 Market St, Ste 201

Denver, CO 80202

Attention: Isaac Dietrich

    

    	 

    

Either party may alter the address to which
communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this section
for the giving of notice.

 

	17.		Construction. Maker and Payee participated in the drafting of this Note, and
this document was reviewed by the respective legal counsel for Maker and Payee. The normal rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be applied to the interpretation of this Note. The
language of this Note shall be construed as a whole according to its fair meaning. The word "include(s)" means "include(s),
without limitation," and the word "including" means "including, but not limited to." No inference in
favor of, or against, Maker or Payee shall be drawn from the fact that one party has drafted any portion hereof.

 

IN WITNESS WHEREOF, Maker
has executed this Note as of the date first set forth above.

 

Santino Walter Productions, LLC

 

 

By: /s/ Santino Walter

 

Its: Chief Executive Officer

 

EXHIBIT A

COLLATERAL420 EVENT AGREEMENT

 

This agreement, dated
March 23, 2016 (this “Agreement”), among MassRoots, Inc., a Delaware corporation, (“MassRoots”), and Santino
Walter Productions, LLC, a Colorado corporation (“SWP”). SWP and MassRoots are each sometimes referred to herein as
a Party and collectively as the Parties.

 

WHEREAS, SWP manages and
hosts an annual rally, concert, and event commonly and historically held in Civic Center Park, Denver, Colorado, on or around
April 16, 2016 (the “420 Event”);

 

WHEREAS, SWP and MassRoots
intend to work together to promote, market, sponsor, organize and coordinate Denver’s 420 Event;

 

WHEREAS, in connection
with the 420 Event, and simultaneously with the execution of this Agreement, SWP and MassRoots shall issue, execute and deliver,
as the case may be, (i) a SWP original issuance discount Senior Secured Promissory Note in the face amount of $156,000, a copy
of which is attached hereto as Exhibit A (the “Note”); and (ii) a License Agreement providing for the rights and obligations
in connection with the licensing of MassRoots’ BRAND (as defined in the License Agreement), a copy of which is attached
hereto as Exhibit B (“License Agreement”)

 

WHEREAS, the Parties hereto
desire to set forth their agreement with respect to the 420 Event;

 

NOW, THEREFORE, in consideration
of the mutual covenants herein contained, the Parties hereto agree as follows:

 

1.
Purchase and Sale of Note; Execution of License Agreement:

 

	a.		MassRoots agrees to purchase on the date hereof (the “Closing Date”) and
SWP agrees to sell and issue on the Closing Date, the Note in the face amount equal to $156,000 (the “Principal Amount”).
MassRoots and SWP agree that the Principal Amount shall be paid by or on behalf of MassRoots by bank draft, wire or check payable
to SWP and is subject to acceptance by SWP.

	b.		In the event that this transaction is terminated for any reason prior to the Closing
Date, or if SWP fails to execute and deliver the Note or the License Agreement, the funds tendered by MassRoots in contemplation
of the issuance of the Note will be immediately refunded to MassRoots.

	c.		On the Closing Date, the Parties shall execute and deliver the License Agreement.

 

2. Other Agreements of the Parties. 

 

	a.		Except to pay amounts due under the Note, the loan by MassRoots pursuant to the Note
shall be used by SWP only for expenses related to the 420 Event. SWP shall not use the loan proceeds for any other purpose other
than the 420 Event Expenses, except upon prior written approval of MassRoots..

	b.		Any agreements entered into with Talent by SWP while the Note is outstanding must
be approved by MassRoots and include provisions requiring the Talent provide social media recognition to MassRoots on Facebook
and Instagram, and, at the determination of MassRoots, to have the Talent join the MassRoots network.

	c.		SWP may sell additional sponsorships for the 420 Event of which MassRoots will receive
50% of the gross proceeds received for each (“Sponsorship Proceeds”). All sponsorship payments are to be paid to MassRoots,
Inc. and MassRoots, Inc. shall immediately pay to SWP 50% of the sponsorship proceeds and use the other 50% to pay remaining balance
of talent contracts, until fully paid. MassRoots acknowledges that Colorado Marijuana Company is already a presenting sponsor
and will not receive any proceeds from their sponsorship. MassRoots will also not receive proceeds for any sponsorship related
to the Greek Theater.

	d.		MassRoots will receive 15% of all booth sales and food truck space sales for the 420
Event. (“Booth Proceeds”). MassRoots shall receive a premier booth space of its choosing at the 420 Event as part
of this Agreement at no charge to MassRoots.

    

    	 

    
	e.		SWP will keep correct and complete records and books of account containing all the
information required for the computation and verification of the Booth Proceeds and Sponsorship Proceeds to be paid hereunder
and provide MassRoots of weekly updates of each. MassRoots and a certified public accountant selected by MassRoots and reasonably
acceptable to SWP shall have the right to inspect and audit such records and books of account during normal business hours and
upon reasonable notice to SWP.

	f.		MassRoots will develop a website to promote the 420 Event and process ticket payments.
MassRoots shall use EventBrite or a similar company as a credit card processor, which is expected to approximate 2.9% of all ticket
sales. Any costs associated therewith, shall be covered by SWP; provided, however, that MassRoots shall cover all activation costs
of selling tickets.

	g.		MassRoots will retain all proceeds from ticket sales, net of credit card processing
fees (“Net Ticket Proceeds”) which will be utilized as follows: (i) the first $130,000 in Net Ticket Proceeds, shall
be transferred to the SWP to pay remaining outstanding amounts due for Talent contracts, but amounts transferred shall not be
greater than the remaining outstanding amounts due under the Talent contracts; (ii) amounts above $130,000 received from ticket
sales, net of credit card processing fees, will be applied towards the repayment of the outstanding principal amount of the Note
and all other amounts payable thereon; (iii) after all amounts due under the Note are paid, MassRoots will apply remaining Net
Ticket Proceeds first against amounts due to MassRoots under the Licensing Agreement, then towards amounts due relating to Booth
Proceeds and Sponsorship Proceeds received by SWP; and (iv) MassRoots will transfer the balance of remaining Net Ticket Proceeds
to SWP. If amounts remain outstanding under (i)-(iii) of this section after all Net Ticket Proceeds are applied, SWP will immediately
pay to MassRoots the balance remaining outstanding. It is understood by the parties that the first $50,000 of sponsorship funds
collected by MassRoots will be paid to SWP to promptly pay the City and County of Denver in order to secure necessary permits
for the 2016 event to occur.

	h.		For all future 420 events of a same or similar nature as the 420 Event occurring through
2020, MassRoots will have a right, but not an obligation, to participate in a transaction with SWP (or any successors, affiliates
or those under common or similar control, as may be the case, and having rights the same or similar rights to the 420 Event) pursuant
to materially similar terms as described in the 420 Documents. MassRoots must provide notice to SWP of its determination to participate
in future events by July 1 of the year preceding the event at issue.

Expenses shall be generally the responsibility of the party incurring the expense,
except as follows: MassRoots shall be responsible for all of its legal fees related to the preparation of the 420 Documents.
MassRoots will not be responsible for any legal fees incurred by SWP in reviewing or enforcing these documents. The credit
card processing cost related to ticket sales will be solely the responsibility of SWP. MassRoots will cover all website
development costs and costs of activation of a credit card processor. However, if, prior to the 420 Event occurring, this
Agreement is terminated by SWP pursuant to Section 7 of this Agreement, if SWP materially defaults on its responsibilities
under this Agreement, SWP will pay to MassRoots reimbursements all expenses then incurred related to the development of the
420 Event (including reasonable development costs) and legal expense incurred related to the preparation of the 420
Documents.

 

3. Representations
of SWP. SWP hereby makes the following representations, warranties and covenants to MassRoots:

 

	a.		SWP has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder.

	b.		The execution and delivery of this Agreement by SWP and the consummation by it of
the transactions contemplated hereunder have been duly authorized by all necessary corporate action on the part of SWP.

	c.		This Agreement has been duly executed by SWP and, when delivered in accordance with
the terms hereof, will constitute the valid and binding obligation of SWP enforceable against SWP in accordance with its terms,
except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws
affecting the enforcement of creditors’ and contracting parties’ rights generally or by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law).

	d.		The execution, delivery and performance of this Agreement and the 420 Materials by
SWP and the consummation by SWP of the transactions contemplated hereby and thereby will not (i) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which 420 Materials is bound,
or (ii) result in a violation of any law, rule, regulation or decree applicable to 420 Materials .

    

    	 

    
	e.		SWP has secured has all necessary governmental permits to hold the 420 Event, and
warrants it has the exclusive ability to accomplish same through the appropriate governmental authorities. SWP has the ability
to host and plan the 420 Event and does not know of any reason that the 420 Event would be disrupted, not occur, or of any other
reason that would cause the 420 Event to not take place as represented or in a similar manner as has occurred during previous
years.

	f.		SWP expressly acknowledges and agrees that MassRoots is relying upon its representations
contained in the 420 Materials.

 

4. Representations of MassRoots. MassRoots hereby makes the following representations, warranties and covenants to SWP:

 

	a.		MassRoots has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder.

	b.		The execution and delivery of this Agreement by MassRoots and the consummation by
it of the transactions contemplated hereunder have been duly authorized by all necessary corporate action on the part of MassRoots.

 

5. Indemnification.
 SWP shall indemnify MassRoots and its affiliates and their respective directors, officers, employees, agents and controlling
persons (MassRoots and each such person being an “Indemnified Party”) from and against any and all losses, claims,
damages, and liabilities, joint, or several (collectively, the “Damages”), to which such Indemnified Party may become
subject and which relate to or arise out of any transaction contemplated by this Agreement (including but not limited to any disclosures
or omissions made by MassRoots) or any role of MassRoots pursuant to this Agreement and shall reimburse each Indemnified Party
for all expenses (including reasonable legal fees and expenses) as they are incurred in connection with the investigation of,
preparation for, or defense of any pending or threatened claim or any action or proceeding arising therefrom, whether or not such
Indemnified Party is a party to such action or proceeding. Notwithstanding the foregoing, SWP shall not be liable for indemnification
under this paragraph to the extent that any such loss, claim, damage, or liability is determined in a final judgment by a court
of competent jurisdiction to have resulted solely from MassRoots’ bad faith or gross negligence.

 

5. 
Assignment. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of MassRoots. SWP
shall not assign any of its interests, rights, duties, or obligations hereunder by operation of law or otherwise without the prior
written consent of MassRoots.

 

6. Termination. Notwithstanding any other term or provision herein, this Agreement and all rights granted hereunder may be
terminated without cause at any time by either Party upon thirty (30) days prior written notice to the other Party. However, in
the event of a material breach of this Agreement by SWP, MassRoots may terminate this Agreement immediately by mailing a written
notice of termination to SWP. In the event of termination of this Agreement, all amounts due under the Agreement will become immediately
due.

 

7. 
Governing Law. This Agreement shall be deemed to be made and entered into pursuant to the laws of the State of Delaware.
In the event of any dispute hereunder, this Agreement shall be governed by and shall be construed and interpreted in accordance
with the laws of the State of Delaware.

 

8. 
Entire Agreement. This Agreement constitutes the final expression of the entire Agreement between the parties relating
to the subject matter hereof and may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement.
This Agreement including this provision shall not be changed, modified, terminated, or discharged in whole or in part except by
an instrument in writing signed by the parties hereto.

 

    

    	 

    

9. 
Notice. Any notice or other communication required or permitted to be given to the parties hereto which is to have legal
effect under the terms of this Agreement shall be effective upon receipt thereof by the other party and shall be sent via certified
or registered mail, return receipt requested, addressed as follows:

 

(a)If to MassRoots:

 

MassRoots, Inc.

1624
Market St #201, 

  Denver, CO 80202

 

  Attention: Isaac Dietrich

 

(b)If to SWP:

 

Santino Walter Productions,
LLC

c/o Robert J. Corry, Jr.,
General Counsel

Law Office of Corry &
Associates

437 West Colfax Ave.,
Suite 300

Denver, CO 80204

 

10.             
Severability; No Partnership. In the event any provision of this Agreement is declared void or unenforceable, or becomes
unlawful in its operation, such provision shall not affect the rights and duties of the parties with regard to the remaining provisions
of this Agreement, which shall continue as binding. Nothing contained in this Agreement shall in any way be construed to create
an agency relationship, partnership or joint venture between the Parties and the Parties to this Agreement shall have no power
to further obligate or bind the other Party.

 

11.             
Exclusion of Waivers. The waiver by either party hereto of a right to default hereunder shall not be deemed to be a waiver
by such party of any subsequent default of a like or similar nature, nor shall it prevent either party from subsequently exercising
or enforcing any such right.

 

12.             
Counterparts. This Letter Agreement may be signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures thereto where upon the same instrument.

    

    	 

    

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

 

MASSROOTS INC.

  

By: /s/ Isaac Dietrich

Name: Isaac Dietrich

Title: Chief Executive Officer

 

Santino Walter Productions, LLC

 

By: /s/ Santino Walter

Name: Santino Walter

Title: Chief Executive Officer

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