Document:

Exhibit 4.2 

 

WARRANT

 

THESE SECURITIES AND THE SECURITIES ISSUABLE
UPON THEIR EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND MAY NOT BE TRANSFERRED UNLESS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, A "NO-ACTION"
LETTER FROM THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION” OR THE “SEC”)
WITH RESPECT TO SUCH TRANSFER, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OF THE COMMISSION, OR AN OPINION OF COUNSEL SATISFACTORY
TO THE ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

MassRoots, Inc.

 

WARRANT NO. MARCH 2014 1-__

 

Dated: March 24, 2014

 

MassRoots, Inc., a corporation organized under the laws of the State of
Delaware (the “Company”), hereby certifies that, for value received from ____________, a [insert state of incorporation
or state of residence] (the “Holder”), is entitled, subject to the terms set forth below, to purchase from
the Company up to a total of [50% of shares of common stock purchased under the common stock offering] shares of the common stock
(equal to one half of the amount the Holder subscribed to under the Company’s Common Stock Offering of even date), $0.001
par value per share (the “Common Stock”), of the Company (the “Warrant Shares”), at an exercise
price equal to 40/100 ($.40) per share (the “Exercise Price”). This Warrant may be exercised on a cashless
basis any time after issuance through and including the third (3rd) anniversary of its original issuance as noted above (the “Expiration
Date”), subject to the following terms and conditions:

 

1.Registration of
Warrant. The Company shall, from time to time and whenever requested by the Holder, register this Warrant in conformity with
records to be maintained by the Company for such purpose (the “Warrant Register”) in the name of the Holder.
The Company shall treat the registered Holder of this Warrant as the absolute owner hereof for any and all purposes, including
the exercise hereof or any distribution to the Holder, and the Company shall not be affected by notice to the contrary.

 

2.Registration of
Transfers and Exchanges.

 

 (a)The
Company or the transfer agent shall enter or record the transfer of all or any portion of this Warrant in the Warrant
Register, upon surrender of this Warrant to the Company at the office specified herein or pursuant to Section 11
hereof. Upon any such registration or transfer, a new warrant to purchase Common Stock, in substantially the form of this
Warrant (any such new warrant hereinafter referred to as a “New Warrant”), evidencing the portion of this
Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant
not so transferred, if any, shall be issued to the Holder. The acceptance of the New Warrant by the transferee thereof shall
be deemed the acceptance of such transferee of all of the rights and obligations of a holder of a Warrant.

 

(b)This Warrant is
exchangeable, upon the surrender hereof by the Holder to the office of the Company specified herein or pursuant to Section 3(b)
hereof for one or more New Warrants, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then
be purchased hereunder. Any such New Warrant shall be dated as of the date of such exchange.

 

3.Duration and Exercise
of Warrants.

 

(a)This Warrant shall
be exercisable by the registered Holder on any business day before 5:00 P.M., Boston time, at any time and from time to time on
or after the date hereof to and including the Expiration Date. At 5:00 P.M., Boston time on the Expiration Date, the portion of
this Warrant not exercised prior thereto shall be and become void and of no value. Prior to the Expiration Date, the Company may
not call or otherwise redeem this Warrant without the prior written consent of the Holder, which consent shall be given or withheld
at the sole and absolute discretion of the Holder.

    	 	 	 

    	 

    

(b)Subject to Section 2(b), Section 6 and Section
10 hereof, upon: (x) surrender of this Warrant, together with the Form of Election to Purchase attached hereto duly completed
and signed, to the Company at its address for notice set forth in Section 11 hereof; and (y) payment of the Exercise Price
multiplied by the number of Warrant Shares that the Holder intends to purchase hereunder, in the manner provided hereunder, all
as specified by the Holder in the Form of Election to Purchase, the Company shall promptly (but in no event later than five (5)
business days after the Date of Exercise (as defined below)) issue or cause to be issued and cause to be delivered to the Holder
in such name(s) as the Holder may designate, a certificate for the Warrant Shares issuable upon such exercise and free of restrictive
legends unless (i) a registration statement covering the resale of the Warrant Shares and naming the Holder as a selling stockholder
thereunder is not then effective or the Warrant Shares are not freely transferable without volume restrictions pursuant to Rule
144(k) promulgated under the Securities Act then the Warrant Shares will bear a Securities Act restrictive legend, or (ii) this
Warrant shall have been issued pursuant to a written agreement between the original Holder and the Company, as required by such
agreement. Any person so designated by the Holder to receive Warrant Shares shall be deemed to have become holder of record of
such Warrant Shares as of the Date of Exercise of this Warrant. A “Date of Exercise” means the date on which
the Company shall have received (I) this Warrant (or any New Warrant, as applicable), together with the Form of Election to Purchase
attached hereto (or attached to such New Warrant) appropriately completed and duly signed; and (II) payment of the Exercise Price
for the number of Warrant Shares so indicated by the holder hereof to be purchased.

 

(c)This Warrant shall
be exercisable in its entirety or, from time to time, for a portion of the number of Warrant Shares. If less than all of the Warrant
Shares which may be purchased under this Warrant are exercised at any time, the Company shall issue or cause to be issued, at its
expense, a New Warrant evidencing the right to purchase the remaining number of Warrant Shares for which no exercise has been evidenced
by this Warrant. In the event the Common Stock representing the Warrant Shares is not delivered per the written instructions of
the Holder within five (5) business days after the Notice of Election and Warrant is received by the Company (the “Delivery
Date”), then the Company shall pay to Holder in cash two percent (2.0%) of the dollar value of the Warrant Shares to
be issued per each day after the Delivery Date that the Warrant Shares are not delivered. The Company acknowledges that its failure
to deliver the Warrant Shares by the Delivery Date will cause the Holder to suffer damages in an amount that will be difficult
to ascertain. Accordingly, the parties hereto agree that it is appropriate to include in this Warrant this provision for liquidated
damages. The parties hereto acknowledge and agree that the liquidated damages provision set forth in this section represents the
parties’ good faith effort to quantify such damages and therefore agree that the form and amount of such liquidated damages
are reasonable and will not constitute a penalty. Notwithstanding the foregoing, the payment of liquidated damages shall not relieve
the Company from its obligations to deliver the Common Stock pursuant to the terms of this Warrant. The Company shall make any
payments incurred under this Section 3 in immediately available funds within five (5) business days from the date of issuance
of the applicable Warrant Shares. Nothing herein shall limit Holder’s right to pursue actual damages or cancel the Notice
of Election for the Company’s failure to issue and deliver Common Stock to the Holder within seven (7) business days following
the Delivery Date.

 

4.Piggyback Registration Rights. If the Company shall
determine to prepare and file with the United States Securities and Exchange 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 any post-effective amendment to existing registration statements
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 stock option or other employee benefit plans, then the Company shall
send to the Holder a written notice of such determination at least five (5) days prior to the filing of any such registration
statement and shall include in such registration statement all shares of common stock underlying this Warrant; provided, however,
that (i) if, at any time after giving written notice of its intention to register any securities and prior to the effective date
of the registration statement filed in connection with such registration, the Company determines for any reason not to proceed
with such registration, the Company will be relieved of its obligation to register any common stock underlying the Warrant in
connection with such registration, and (ii) in case of a determination by the Company to delay registration of its securities,
the Company will be permitted to delay the registration of the common stock underlying the Warrant for the same period as the
delay in registering such other securities.

 

5. Payment of Taxes.
Upon the exercise of this Warrant, the Company will pay all documentary stamp taxes attributable to the issuance of Warrant Shares;
provided, however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved
in the registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall
be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant
Shares upon exercise hereof.

    	 	 	 

    	 

    

6.Replacement of Warrant.
If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution
for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction and indemnity, if requested, satisfactory to it. Applicants
for a New Warrant under such circumstances shall comply with such other reasonable regulations and procedures and pay such other
reasonable charges as the Company may prescribe.

 

7.Reservation of Warrant
Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but
unissued Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided,
the number of Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive
rights or any other actual contingent purchase rights of persons other than the Holder (taking into account the adjustments and
restrictions of Section 8 hereof). The Company covenants that all Warrant Shares that shall be so issuable and deliverable
shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly
authorized, issued and fully paid and nonassessable. If the Company does not have a sufficient amount of Common Stock authorized
to reserve for the Warrant Shares, it shall, as soon as reasonably practicable, use its best efforts to increase the number of
its authorized shares such that the Company will have a sufficient amount of Common Stock authorized to reserve for the Warrant
Shares.

 

8.Certain Adjustments.
The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time
as set forth in this Section 8. Upon each such adjustment of the Exercise Price pursuant to this Section 8, the Holder
shall thereafter but prior to the Expiration Date be entitled to purchase, at the Exercise Price resulting from such adjustment,
the number of Warrant Shares obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the number
of Warrant Shares issuable upon exercise of this Warrant immediately prior to such adjustment and dividing the product thereof
by the Exercise Price resulting from such adjustment.

 

(a)An adjustment shall
be made, if the Company, at any time while this Warrant is outstanding (i) pays a stock dividend (except scheduled dividends paid
on outstanding preferred stock as of the date hereof which contain a stated dividend rate) or otherwise make distribution(s) on
shares of its Common Stock or on any other class of capital stock and not the Common Stock payable in shares of Common Stock; (ii)
subdivides outstanding shares of Common Stock into a larger number of shares; or (iii) combines outstanding shares of Common Stock
into a smaller number of shares. If either (i), (ii) or (iii) above occurs, the Exercise Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such
event and of which the denominator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision or combination, and shall apply to successive subdivisions and combinations.

 

(b)In case of any reclassification
of the Common Stock, any consolidation or merger of the Company with or into another entity, the sale or transfer of all or substantially
all of the assets of the Company, or any compulsory share exchange pursuant to which the Common Stock is converted into other securities,
cash or property, then the Holder shall have the right thereafter to exercise this Warrant only into the shares of stock and other
securities and property receivable upon or deemed to be held by holders of Common Stock following such reclassification, consolidation,
merger, sale, transfer or share exchange, and the Holder shall be entitled upon such event to receive such amount of securities
or property equal to the amount of Warrant Shares such Holder would have been entitled to had such Holder exercised this Warrant
immediately prior to such reclassification, consolidation, merger, sale, transfer or share exchange. The terms of any such consolidation,
merger, sale, transfer or share exchange shall include such terms so as to continue to give to the Holder the right to receive
the securities or property set forth in this Section 8(b) upon any exercise following any such reclassification, consolidation,
merger, sale, transfer or share exchange.

    	 	 	 

    	 

    

(c) At any time while
this Warrant is outstanding, if the Company distributes to all holders of Common Stock (and not to holders of this Warrant) evidence
of its indebtedness or assets or rights or warrants to subscribe for or purchase any security (excluding those referred to in Section
8(a), Section 8(b) and Section 8(d) hereof), then in each such case the Exercise Price shall be determined by
multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled
to receive such distribution by a fraction of which the denominator shall be the Exercise Price determined as of the record date
mentioned above, and of which the numerator shall be such Exercise Price on such record date less the then fair market value at
such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of
Common Stock as determined by the Company's independent certified public accountants that regularly examines the financial statements
of the Company (the “Appraiser”).

 

(d)If, at any time
while this Warrant is outstanding, the Company shall issue or cause to be issued rights or warrants to acquire or otherwise sell
or distribute shares of Common Stock for a consideration per share less than the lower of the Exercise Price then in effect and
the then fair market value of the Common Stock, then, forthwith upon such issue or sale, the Exercise Price shall be reduced to
the price (calculated to the nearest one hundredth of a cent) determined by multiplying the Exercise Price in effect immediately
prior thereto by a fraction, the numerator of which shall be the sum of (i) the number of shares of Common Stock outstanding immediately
prior to such issuance, and (ii) the number of shares of Common Stock which the aggregate consideration received (or to be received,
assuming exercise or conversion in full of such rights, warrants and convertible securities) for the issuance of such additional
shares of Common Stock would purchase at the Exercise Price, and the denominator of which shall be the sum of the number of shares
of Common Stock outstanding immediately after the issuance of such additional shares. Such adjustment shall be made successively
whenever such an issuance is made.

 

(e)For the purposes
of this Section 8, the following clauses shall also be applicable:

 

(i) Record Date. In
case the Company shall take a record of the holders of its Common Stock for the purpose of entitling them (A) to receive a dividend
or other distribution payable in Common Stock or in securities convertible or exchangeable into shares of Common Stock, or (B)
to subscribe for or purchase Common Stock or securities convertible or exchangeable into shares of Common Stock, then such record
date shall be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon
the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription
or purchase, as the case may be.

 

(ii) Treasury Shares.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(f)All calculations
under this Section 8 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.

 

(g)Whenever the Exercise Price is adjusted pursuant to Section
8(c) hereof, the Holder, after receipt of the determination by the Appraiser, shall have the right to select an additional
appraiser (which shall be a nationally recognized accounting firm), in which case the adjustment shall be equal to the average
of the adjustments recommended by each of the Appraiser and such additional appraiser appointed under this Section 8(g).
The Holder shall promptly mail or cause to be mailed to the Company, a notice setting forth the Exercise Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment. Such adjustment shall become effective immediately
after the record date mentioned above, if:

 

(i)the Company
shall declare a dividend (or any other distribution) on its Common Stock;

 

(ii)the Company shall
declare a special nonrecurring cash dividend on or a redemption of its Common Stock;

 

(iii)the Company shall
authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights;

 

(iv)the approval of any
stockholders of the Company shall be required in connection with any reclassification of the Common Stock of the Company, any consolidation
or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any
compulsory share exchange whereby the Common Stock is converted into other securities, cash or property; or

    	 	 	 

    	 

    

(v)the Company shall
authorize the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall cause to be
mailed to the Holder at their last addresses as they shall appear upon the Warrant Register, at least thirty (30) calendar days
prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date
as of which the holders of Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants
are to be determined, or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected that holders of Common Stock of record shall be
entitled to exchange their shares of Common Stock for securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer, share exchange, dissolution, liquidation or winding up; provided, however, that the failure
to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required
to be specified in such notice.

 

9.Payment of Exercise
Price. The Holder, at its sole election, may pay the Exercise Price in one of the following manners:

 

(a)Cash Exercise.
The Holder shall deliver immediately available funds; or

 

(b)Cashless Exercise. If at any time after one year from
the date of issuance of this Warrant there is no effective Registration Statement registering the resale of the Warrant Shares
by the Holder at such time, this Warrant may also be exercised at such time by means of a cashless exercise. In such event, the
Holder shall surrender this Warrant to the Company, together with a notice of cashless exercise, and the Company shall issue to
the Holder the number of Warrant Shares determined as follows:

 

X = Y (A-B)/A

 

where:

X = the number of Warrant
Shares to be issued to the Holder.

 

Y = the number of Warrant Shares with
respect to which this Warrant is being exercised.

 

A = the average closing bid price of
the Common Stock for the five (5) trading days immediately prior to the Date of Exercise.

 

B = the Exercise Price.

 

For purposes of Rule 144 of the Securities
Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed
to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have been commenced, on the
issue date.

 

(c)Notwithstanding
anything in this Warrant to the contrary, the Holder is limited in the amount of this Warrant it may exercise. In no event shall
the Holder be entitled to exercise any amount of this Warrant in excess of that amount upon exercise of which the sum of (1) the
number of shares of Common Stock beneficially owned (as such term is defined under Section 13(d) and Rule 13d-3 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) by the Holder, and (2) the number of Warrant Shares issuable
upon the exercise of any Warrants then owned by Holder, would result in beneficial ownership by the Holder of more than four and
ninety-nine one hundredths percent (4.99%) of the outstanding shares of Common Stock of the Company, as determined in accordance
with Rule13d-1(j) of the Exchange Act. Furthermore, the Company shall not process any exercise that would result in beneficial
ownership by the Holder of more than four and ninety-nine one hundredths percent (4.99%) of the outstanding shares of Common Stock
of the Company.

 

10.Fractional Shares.
The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this Warrant. The
number of full Warrant Shares which shall be issuable upon the exercise of this Warrant shall be computed on the basis of the aggregate
number of Warrant Shares purchasable on exercise of this Warrant so presented. If any fraction of a Warrant Share would, except
for the provisions of this Section 10, be issuable on the exercise of this Warrant, the Company shall pay an amount in cash
equal to the Exercise Price multiplied by such fraction.

    	 	 	 

    	 

    

11.Notices. Any
and all notices or other communications or deliveries hereunder shall be in writing and shall be deemed given and effective on
the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone
number specified in this Section prior to 5:00 p.m. Boston time on a business day, (ii) the business day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section later than
5:00 p.m. Boston time on any date and earlier than 11:59 p.m. Boston time on such date, (iii) the business day following the date
of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice
is required to be given. The addresses for such communications shall be:

 

If to the Company:

 

MassRoots, Inc.

6525 Gunpark Drive,

Boulder, CO 80301

 

 

If to the Holder:

[Insert Name and Address here]

 

 

12.Warrant Agent.
The Company shall serve as warrant agent under this Warrant. Upon thirty (30) days notice to the Holder, the Company may appoint
a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting
from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or
any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor
warrant agent under this Warrant without any further action. Any such successor warrant agent shall promptly cause notice of its
succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder's last address as shown
on the Warrant Register.

 

13.Miscellaneous.

 

(a)This Warrant shall
be binding on and inure to the benefit of the parties hereto. This Warrant may be amended only in writing signed by the Company
and the Holder.

 

(b)Nothing in this
Warrant shall be construed to give to any person or corporation other than the Company and the Holder any legal or equitable right,
remedy or cause under this Warrant. This Warrant shall inure to the sole and exclusive benefit of the Company and the Holder.

 

(c)This Warrant shall
be governed by and construed and enforced in accordance with the laws of the Commonwealth of Massachusetts without regard to the
principles of conflicts of law thereof.

 

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

 

(e)In case any one
or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt
in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and
upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

(f)The Company hereby
represent and warrants to the Holder that: (i) it is voluntarily issuing this Warrant of its own freewill, (ii) it is not issuing
this Warrant under economic duress, (iii) the terms of this Warrant are reasonable and fair to the Company, and (iv) the Company
has had independent legal counsel of its own choosing review this Warrant, advise the Company with respect to this Warrant, and
represent the Company in connection with its issuance of this Warrant.

    	 	 	 

    	 

    

(g)Any capitalized
term used but not defined in this Warrant shall have the meaning ascribed to it in the Subscription Agreement.

 

(h)This Warrant may
be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken
together shall constitute one and the same Warrant. In the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same
with the same force and effect as if such facsimile signature were the original thereof.

 

(i)This Warrant and
the obligations of the Company hereunder shall not be assignable by the Company.

 

(j)Notwithstanding anything in this Warrant to the contrary,
the parties hereto hereby acknowledge and agree to the following: (i) the Holder makes no representations or covenants that it
will not engage in trading in the securities of the Company; (ii) the Company shall, by 8:30 a.m. Boston Time on the trading day
following the date hereof, file a current report on Form 8-K disclosing the material terms of the transactions contemplated hereby
and in the other Transaction Documents; (iii) the Company has not and shall not provide material non-public information to the
Holder unless prior thereto the Holder Party shall have executed a written agreement regarding the confidentiality and use of
such information; and (iv) the Company understands and confirms that the Holder will be relying on the acknowledgements set forth
in clauses (i) through (iii) above if the Holder effects any transactions in the securities of the Company.

 

14. Disputes Under This Agreement.

 

All disputes arising under
this Warrant shall be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts, without regard
to principles of conflict of laws. The parties hereto will submit all disputes arising under this Agreement to arbitration in Boston,
Massachusetts before a single arbitrator of the American Arbitration Association (the “AAA”). The arbitrator
shall be selected by application of the rules of the AAA, or by mutual agreement of the parties, except that such arbitrator shall
be an attorney admitted to practice law in the Commonwealth of Massachusetts. No party hereto will challenge the jurisdiction or
venue provisions provided in this Section 14. Nothing in this Section 14 shall limit the Holder's right to obtain
an injunction for a breach of this Agreement from a court of law. Any injunction obtained shall remain in full force and effect
until the arbitrator, as set forth in this Section 14 fully adjudicates the dispute.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

[Signature on Following
Page]

    	 

    	 

    

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

 

 

MassRoots,
Inc. 

 

By:_________________

Name:Isaac Dietrich

Title: CEO 

    	 

    	 

    

 

EXHIBIT A

 

FORM OF ELECTION TO PURCHASE

 

MassRoots, Inc.

 

Re: Intention to Exercise Right to Purchase
Shares of Common Stock Under the Warrant

 

Gentlemen:

 

In accordance with
the Warrant enclosed with this Form of Election to Purchase, the undersigned hereby irrevocably elects to purchase _________________shares
of Common Stock, $0.001 par value per share, of MassRoots, Inc.. and, if such Holder is not utilizing the cashless exercise provisions
set forth in the Warrant, encloses herewith $________ in cash, certified or official bank check(s), which sum represents
the aggregate Exercise Price for the number of shares of Common Stock to which this Form of Election to Purchase relates, together
with any applicable taxes payable by the undersigned pursuant to the Warrant. Any capitalized terms used but not defined in this
Form of Election to Purchase shall have the meaning ascribed to them in the accompanying Warrant.

 

The undersigned requests that certificates
for the shares of Common Stock issuable upon this exercise be issued in the name of:

 

	 
	(Please insert SS# or FEIN #)
	 
	(Please
print name and address)

 

If the number of shares of Common Stock
issuable upon this exercise shall not be all of the shares of Common Stock which the undersigned is entitled to purchase in accordance
with the enclosed Warrant, the undersigned requests that a New Warrant evidencing the right to purchase the shares of Common Stock
not issuable pursuant to the exercise evidenced hereby be issued in the name of and delivered to:

 

	 
	(Please
print name and address)

 

	Dated:	 	 	Name of Holder:	 
	 	 	 	 	 
	 	 	 	Signed:	 
	 	 	 	Print Name	 
	 	 	 	Title:	 

(Signature must conform in all respects to
name of Holder as specified on the face of the Warrant)Exhibit 4.3 

 

DEBENTURE

 

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE
ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SUCH LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS OF TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SUCH LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM.
THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”
OR THE “SEC”) OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED
THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

 

	FACE AMOUNT:	 	$
	DEBENTURE NUMBER:	 	March 2014
	ISSUANCE DATE:	 	March 24, 2014
	MATURITY DATE:	 	March 24, 2016

 

FOR VALUE RECEIVED, MassRoots, Inc., a Delaware corporation (the
“Company”), hereby promises to pay_____________________, a___________________ (the “Holder”)
by March 24, 2016 (the “Maturity Date”), the principal amount of [INSERT AMOUNT], and to pay the principal
amount thereof, and any accrued penalties, in such amounts, at such times and on such terms and conditions as are specified herein.

 

This Debenture (this “Debenture”) is subject to
automatic conversion at the Maturity Date, at which time the outstanding amount under this Debenture will be automatically converted
based upon the formula set forth in Article 3.2(c) hereof.

 

Article 1Interest.

 

No interest shall accrue on the Debenture.

 

Article 2Method of Payment.

 

Section 2.1Repayment of Debenture.

 

(a)    After the date on which the United States
Securities and Exchange Commission (the “Commission” or the “SEC”) declares the registration
statement (the “Registration Statement") covering the shares underlying the conversion of this Debenture (the
“Conversion Shares”) effective (the “Effective Date”), the Holder, at its sole option, shall
be entitled to elect to convert a portion of this Debenture pursuant to Article 3 hereof.

 

Nothing contained in this Article 2 shall limit the amount
the Holder can elect to convert during a calendar month except as defined in Section 3.2 (i) hereof.

 

Article 3Conversion.

 

Section 3.1                 
Conversion Privilege.

 

(a)    The Holder of this Debenture shall have
the right to convert (a “Conversion”) any and all amounts owing under this Debenture into shares of common
stock of the Company, par value $0.001 per share (the “Common Stock”), at any time following the Closing Date
(as such term is defined in that certain Debenture Registration Rights Agreement, of even date herewith, by and between the Company
and the Holder (the “Debenture Registration Rights Agreement”)) but which is before the close of business on
the Maturity Date, except as set forth in Section 3.2(c) hereof. The number of shares of Common Stock issuable upon the
Conversion of this Debenture is determined pursuant to Section 3.2 hereof and rounding the result up to the nearest whole
share.

    	 	 	 

    	 

    

(b)              
This Debenture may not be converted, whether in whole or in part, except in accordance with this Article 3.

 

(c)               
In the event all or any portion of this Debenture remains outstanding on the Maturity Date, the unconverted portion of such Debenture
shall automatically be converted into shares of Common Stock on such date in the manner set forth in Section 3.2 hereof.

 

Section 3.2                 
Conversion Procedure.

 

(a)               
Conversion Procedures. In addition to the Holder’s right to convert this Debenture as provided in Section
2.1 above, the Holder may elect to convert the unpaid Face Amount of this Debenture, in whole or in part, at any time following
the Closing Date; provided, however, that in the event any Conversion occurs prior to the Effective Date, the Conversion Shares
shall be subject to applicable transferability restrictions as provided under the federal securities laws, including Rule 144.
Any such Conversion shall be effectuated by the Holder sending to the Company a facsimile or electronic mail version of the signed
Notice of Conversion, attached hereto as Exhibit A, which evidences the Holder’s intention to convert the Debenture
as indicated. The date on which the Notice of Conversion is delivered (the “Conversion Date”) shall be deemed
to be the date on which the Holder has delivered to the Company a facsimile or electronic mail of the signed Notice of Conversion.
Notwithstanding the above, any Notice of Conversion received by 5:00 P.M. Boston Time shall be deemed to have been received the
previous business day, with receipt being via a confirmation of time of facsimile of the Holder.

 

(b)              
Common Stock to be Issued. Upon the Holder's Conversion of any amount of this Debenture, the Company shall issue
the number of shares of Common Stock equal to the Conversion. If, at the time of Conversion, the Registration Statement has been
declared effective, the Company shall instruct its transfer agent to issue stock certificates without restrictive legend (other
than a legend referring to such Registration Statement and prospectus delivery requirements) or stop transfer instructions. If,
at the time of the Holder's Conversion, the Registration Statement has not been declared effective, the Company shall instruct
the transfer agent to issue the certificates with an appropriate legend. The Company shall act as Registrar and shall maintain
an appropriate ledger containing the necessary information with respect to this Debenture. The Company represents and warrants
to the Holder that no instructions, other than these instructions, have been given or will be given to the transfer agent and
that the Common Stock shall otherwise be freely resold, except as may be otherwise set forth herein.

 

(c)               
Conversion Price.  The Holder is entitled to convert the unpaid Face Amount of this Debenture, any time following
a Closing Date, at ten cents ($.10) per share. No fractional shares or scrip representing fractions of shares will be issued upon
Conversion, but the number of shares issuable shall be rounded up, in the event of a partial share, to the nearest whole share.
The Holder shall retain all rights of Conversion during any partial trading days.

 

(d)              
Maximum Interest. Nothing contained in this Debenture shall be deemed to establish or require the Company to pay interest
to the Holder at a rate in excess of the maximum rate permitted by applicable law. In the event that the rate of interest required
to be paid exceeds the maximum rate permitted by applicable law, the rate of interest required to be paid thereunder shall be
automatically reduced to the maximum rate permitted under applicable law and such excess, if so ordered, shall be credited on
any remaining balances due to the Holder. In the event that the interest rate on this Debenture is required to be adjusted pursuant
to this Section 3.2(d), then the parties hereto agree that the terms of this Debenture shall remain in full force and effect
except as is necessary to make the interest rate comply with applicable law.

 

(e)               
Opinion Letter. It shall be the Company’s responsibility to take all necessary actions and to bear all such costs
to issue the Common Stock as provided herein, including the responsibility and cost for delivery of an opinion letter to the transfer
agent, if so required. The person or entity in whose name the certificate of Common Stock is to be registered shall be treated
as a shareholder of record on and after the Conversion Date. Upon surrender of any Debentures that are to be converted in part,
the Company shall issue to the Holder a new Debenture equal to the unconverted amount. The Company hereby acknowledges that the
date of consideration for this Debenture is the Issuance Date and shall use all commercially reasonable best efforts to facilitate
sales under Rule 144 of the Securities Act.

    	 	 	 

    	 

    

(f)               
Delivery of Shares.

 

(i)              
Within three (3) business days after receipt of the Notice of Conversion (the
“Delivery Deadline”), the Company shall deliver a certificate, in accordance with Section 3.2(c) hereof
for the number of shares of Common Stock issuable upon a Conversion. In the event the Company does not make delivery of said certificate
by the Delivery Deadline, the Company shall pay to Holder in cash, as liquidated damages, an additional fee per day equal to three
percent (3%) of the dollar value of the Debentures being converted (the “Delivery Penalty”); provided, however, that
the Delivery Penalty shall not be assessed against the Company in the event that the delay in delivery of the Holder’s certificate
beyond the Delivery Deadline is not due to the Company’s actions. In lieu of delivering physical certificates representing
the Common Stock and provided that the Company's transfer agent then is participating in The Depository Trust Company (“DTC”)
Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder, the Company shall use all commercially
reasonable efforts to cause its transfer agent to electronically transmit the Securities by crediting the account of the Holder's
prime broker (as specified by the Holder within a reasonable period in advance of the Holder's notice) with DTC through its Deposit
Withdrawal Agent Commission (“DWAC”) system. If the Company is not DWAC eligible at the time of a Conversion, the
Company and the Holder agree to share equally any charges incurred on each Conversion Date associated with, but not limited to,
deposit costs, legal review fees and wire fees. 

 

(ii)            
If the failure of the Company to deliver the Common Stock pursuant to this Article
3.2(f) is due to the unavailability of a sufficient number of authorized shares of Common Stock of the Company, then the provisions
of this Article 3.2(f) shall apply as well as the provisions of Article 3.2(k) hereof shall apply.

 

(iii)          
The Company shall make any payments required under this Article 3.2(f) in
immediately available funds for any defaults under 3.2 (f) within two (2) of curing such default. Nothing herein shall limit the
Holder’s right, at the Holder's sole discretion, to pursue actual damages or cancel the conversion for the Company’s
failure to issue and deliver the certificate by the Certificate Deadline.

 

(iv)          
The Company shall at all times reserve (or make alternative written arrangements
for reservation or contribution of shares) and have available all Common Stock necessary to meet
Conversion of the full amount of the Debentures then outstanding and due to the Holder, unless so waived by the Holder in writing.
If, at any time, the Holder submits a Notice of Conversion and the Company does not have sufficient authorized but unissued shares
of Common Stock (or alternative shares of Common Stock as may be contributed by Stockholders) available to effect, in full, a
Conversion of the Debentures (a “Conversion Default”, the date of such default being referred to herein as
the “Conversion Default Date”), the Company shall issue to the Holder all of the shares of Common Stock which
are then currently available. Any Debentures or any portion thereof, which cannot be converted due to the Company's lack of sufficient
authorized common stock (the “Unconverted Debentures”), may be deemed null and void upon written notice sent
by the Holder to the Company. The Company shall provide notice of such Conversion Default (“Notice of Conversion Default”)
to the Holder, by facsimile, within one (1) business days of such default.

 

(v)            
In the event of Conversion Default, the Company will pay to the Holder an amount
computed as follows (the “Conversion Default Rate”): 

 

(N / 365) x (0.24) x (initial
issuance price of outstanding and/or tendered but not converted Debentures held by the Holder)

 

Where N is equal to
the number of days from the Conversion Default Date to the date that the Company authorizes a sufficient number of shares of Common
Stock to effect conversion of all remaining Debentures (the “Authorization Date”).

 

(vi)          
The Company shall send notice to Holder of outstanding Debenture that additional
shares of Common Stock have been authorized, stating the Authorization Date and the amount of Holder’s accrued Conversion
Default Payments (“Authorization Notice”). The accrued Conversion Default shall be paid in cash or shall be
convertible into Common Stock at the Conversion Rate, upon written notice sent by the Holder to the Company, as follows: (i) in
the event the Holder elects to take such payment in cash, cash payment shall be made to the Holder within five (5) business days,
or (ii) in the event Holder elects to take such payment in stock, the Holder may convert at the Conversion Default Rate within
five (5) business days until the expiration of the Conversion period.

    	 	 	 

    	 

    

(vii)        
The Company acknowledges that its failure to maintain a sufficient number of authorized
but unissued shares of Common Stock to effect in full a Conversion of the Debentures will cause the Holder to suffer irreparable
harm, and that damages will be difficult to ascertain. Accordingly, the parties agree that it is appropriate to include in this
Debenture a provision for liquidated damages. The parties acknowledge and agree that the liquidated damages provision set forth
in this Section represents the parties’ good faith effort to quantify such damages and, as such, agree that the form and
amount of such liquidated damages are reasonable and will not constitute a penalty. The payment of liquidated damages shall not
relieve the Company from its obligations to deliver the Common Stock pursuant to the terms of this Debenture. Nothing herein shall
limit the Holder’s right to pursue actual damages for the Company’s failure to maintain a sufficient number of authorized
shares of Common Stock.

 

(viii)      
If by the Delivery Deadline, any portion of the shares of the Debentures have
not been delivered to the Holder and the Holder purchases, in an open market transaction or otherwise, shares of Common Stock
necessary to make delivery of shares which would have been delivered if the full amount of the shares to be converted and delivered
to the Holder by the Company (the “Covering Shares”), then the Company shall pay to the Holder, in addition
to any other amounts due to the Holder pursuant to this Debenture, and not in lieu thereof, the Buy-In Adjustment Amount (as defined
below). The “Buy In Adjustment Amount” is the amount equal to the excess, if any, of (x) the Holder's total
purchase price (including brokerage commissions, if any) for the Covering Shares, minus (y) the net proceeds (after brokerage
commissions, if any) received by the Holder from the sale of the sold shares. The Company shall pay the Buy-In Adjustment Amount
to the Holder in immediately available funds within five (5) business days of written demand by the Holder. By way of illustration
and not in limitation of the foregoing, if the Holder purchases shares of Common Stock having a total purchase price (including
brokerage commissions) of $11,000 to cover a Buy-In with respect to shares of Common Stock it sold for net proceeds of $10,000,
the Buy-In Adjustment Amount which the Company would be required to pay to the Holder would be $1,000.

 

(g)              
Prospectus and Other Documents. The Company shall furnish to the Holder one (1) prospectus and any other documents incidental
to the registration of the Conversion Shares, including any amendment of or supplements thereto. Any filings submitted via EDGAR
will constitute fulfillment of the Company's obligation under this Section.

 

(h)              
Limitation on Issuance of Shares. If the Company’s Common Stock becomes listed on the Nasdaq SmallCap Market after
the issuance of this Debenture, the Company may be limited in the number of shares of Common Stock it may issue by virtue of (A)
the number of authorized shares or (B) the applicable rules and regulations of the principal securities market on which the Common
Stock is listed or traded, including, but not necessarily limited to, NASDAQ Rule 4310(c)(25)(H)(i) or Rule 4460(i)(1), as may
be applicable (collectively, the “Cap Regulations”). Without limiting the other provisions thereof: (i) the
Company will take all steps necessary to issue the Conversion Shares without violating the Cap Regulations, and (ii) if, despite
taking such steps, the Company cannot issue such Conversion Shares without violating the Cap Regulations or the Holder cannot
convert as a result of the Cap Regulations (each such Debenture, an “Unconverted Debenture”) the Holder shall
have the right to elect either of the following options:

 

(i)              
if permitted by the Cap Regulations, require the Company to issue shares of Common
Stock in accordance with the Holder's Notice of Conversion at a conversion purchase price equal to the average of the closing
bid price per share of Common Stock for any five (5) consecutive Trading Days (subject to certain equitable adjustments for certain
events occurring during such period) during the sixty (60) Trading Days immediately preceding the Conversion Date; or 

 

(ii)            
require the Company to redeem each Unconverted Debenture for an amount (the “Redemption
Amount”), payable in cash, equal to the sum of (i) one hundred thirty-three percent (133%) of the principal of an Unconverted
Debenture.

 

(iii)The Holder may elect, without
limitation, one of the above remedies with respect to a portion of such Unconverted Debenture and the other remedy with respect
to other portions of the Unconverted Debenture. The Unconverted Debenture shall contain provisions substantially consistent with
the above terms, with such additional provisions as may be consented to by the Holder. The provisions of this Section are not
intended to limit the scope of the provisions otherwise included in the Unconverted Debenture.

    	 	 	 

    	 

    

(i)                
Limitation on Amount of Conversion and Ownership. Notwithstanding anything to the contrary in this Debenture, in no event
shall the Holder be entitled to convert that amount of Debenture, and in no event shall the Company permit that amount of conversion,
into that number of shares, which when added to the sum of the number of shares of Common Stock beneficially owned, (as such term
is defined under Section 13(d) and Rule 13d-3 of the Securities Exchange Act of 1934, as may be amended, (the “Exchange
Act”)), by the Holder, would exceed four and ninety-nine one hundredths percent (4.99%) of the number of shares of Common
Stock outstanding on the Conversion Date, as determined in accordance with Rule 13d-1(j) of the Exchange Act. In the event that
the number of shares of Common Stock outstanding as determined in accordance with Section 13(d) of the Exchange Act is different
on any Conversion Date than it was on the Closing Date, then the number of shares of Common Stock outstanding on such Conversion
Date shall govern for purposes of determining whether the Holder would be acquiring beneficial ownership of more than four and
ninety-nine one hundredths percent (4.99%) of the number of shares of Common Stock outstanding on such Conversion Date. However,
nothing in this Section 3.2(i) shall be read to reduce the amount of principal, liquidated damages or penalties, if any,
due to the Holder.

 

(j)                
Legend. The Holder acknowledges that each certificate representing the Debentures, and the Common Stock unless registered
pursuant to the Debenture Registration Rights Agreement, shall be stamped or otherwise imprinted with a legend substantially in
the following form:

 

THE SECURITIES EVIDENCED BY THIS
CERTIFICATE MAY NOT BE OFFERED OR SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT (i) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (ii) TO THE EXTENT APPLICABLE, PURSUANT TO RULE
144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) PURSUANT TO AN AVAILABLE
EXEMPTION FROM REGISTRATION UNDER SUCH ACT.

 

(k)              
Prior to Conversion of this Debenture, if at any time the Conversion of all the Debentures would result in an insufficient number
of authorized shares of Common Stock being available to cover all the Conversions, then in such event, the Company will move to
call and hold a shareholder’s meeting or have shareholder action with written consent of the proper number of shareholders
within thirty (30) days of such event, or such greater period of time if statutorily required or reasonably necessary as regards
standard brokerage house and/or SEC requirements and/or procedures, for the purpose of authorizing additional shares of Common
Stock such as necessary to facilitate the Holder's Conversions. In such an event, management of the Company shall recommend to
all shareholders to vote their shares in favor of increasing the authorized number of shares of Common Stock. Management of the
Company shall vote all of its shares of Common Stock in favor of increasing the number of shares of authorized Common Stock to
an amount equal to no less than three hundred percent (300%) of the remaining balance on this Debenture. The Company represents
and warrants that under no circumstances will it deny or prevent the Holder’s right to convert the Debentures as permitted
under the terms of any of the Transaction Documents (as such term is defined in that certain Debenture Registration Rights Agreement,
of even date herewith, by and between the Company and the Holder). Nothing in this Section shall limit the obligation of the Company
to make the payments set forth in this Article 3. The Holder, at its sole option, may request the company to authorize
and issue additional shares if the Holder feels it is necessary for Conversions in the future. In the event the Company’s
shareholder’s meeting does not result in the necessary authorization, the Company shall redeem the outstanding Debentures
for an amount equal to the sum of the principal of the outstanding Debentures multiplied by one hundred thirty-three percent (133%).

 

Section 3.3     
Fractional Shares. The Company shall not issue fractional shares of Common Stock, or scrip representing fractions of such
shares, upon the conversion of this Debenture. Instead, the Company shall round up, to the nearest whole share.

 

Section 3.4     
Taxes on Conversion. The Company shall pay any documentary, stamp or similar issue or transfer tax due on the issue
of shares of Common Stock upon the conversion of this Debenture. However, the Holder shall pay any such tax which is due because
the shares are issued in a name other than its name.

 

Section 3.5        
Company to Reserve Stock. The Company shall reserve and maintain the number of shares of Common Stock required pursuant
to and upon the terms set forth in the Transaction Documents to permit the Conversion of this Debenture.
 All Conversion Shares shall, upon issuance by the Company, be validly issued, fully paid and nonassessable and free and
clear from all taxes, liens, charges and encumbrances with respect to the issuance thereof.

    	 	 	 

    	 

    

Section 3.6     
Restrictions on Sale. This Debenture and, until the effectiveness of the registration statement as provided in the
Transaction Documents, the Conversion Shares have not been registered under the Securities Act and are being issued, or will be
issued, as the case may be under Section 4(2) of Securities Act and Rule 506 of Regulation D promulgated under the Securities
Act. This Debenture and the Conversion Shares may only be sold pursuant to registration under
or an exemption from the Securities Act.

 

Section 3.7Stock Splits, Combinations
and Dividends. If the shares of Common Stock are subdivided or combined into a greater or smaller number of shares of Common
Stock, or if a dividend is paid on the Common Stock in shares of Common Stock, the Conversion Price shall be proportionately reduced
in the case of a subdivision of shares or stock dividend, or proportionately increased in the case of combination of shares, in
each such case, by the ratio that the total number of shares of Common Stock outstanding immediately after such event bears to
the total number of shares of Common Stock outstanding immediately prior to such event.

 

Article 4Mergers.

 

The Company shall
not consolidate or merge into, or transfer any or all of its assets to, any person, unless such person assumes in writing the
obligations of the Company under this Debenture and immediately after such transaction no Event of Default (as defined below)
exists. Any reference herein to the Company shall refer to such surviving or transferee corporation and the obligations of the
Company shall terminate only upon such written assumption of the Company's obligation. In the event of a merger, or other consolidation,
the Company shall give notice to the Holder simultaneously with the announcement to the public markets.

 

Article 5 Security.

 

This Debenture is
shall be secured by the Security Agreement of even date.

 

Article 6Defaults and Remedies.

 

Section 6.1     
Events of Default. An “Event of Default” occurs if any one of the following occur:

 

(a)         
the Company does not make timely payment or Conversion, in whole or in part, necessary to cover the principal, or other sum due
on the Maturity Date, Conversion Date, upon redemption, or otherwise described herein;

 

(b)        
any of the Company’s representations or warranties contained in the Transaction Documents or this Debenture were false when
made or the Company fails to comply with any of its other agreements in the Transaction Documents and such failure within ten
(10) business days of notice of default; or,

 

(c)         
the Company pursuant to or within the meaning of any Bankruptcy Law: (i) commences a voluntary case; (ii) consents to the entry
of an order for relief against it in an involuntary case; (iii) consents to the appointment of a Custodian (as defined below)
of it or for all or substantially all of its property or (iv) makes a general assignment for the benefit of its creditors or (v)
a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against the Company
in an involuntary case; (B) appoints a Custodian of the Company for all or substantially all of its property or (C) orders the
liquidation of the Company, and the order or decree remains unstayed and in effect for sixty (60) calendar days; or,

 

(d)        
the Company’s Common Stock is suspended or no longer listed on any recognized exchange including electronic over-the-counter
bulletin board (“Principal Market”) for in excess of three (3) consecutive Trading Days. Failure to comply
with the requirements for continued listing on a Principal Market for a period of five (5) trading days; or notification from
a Principal Market that the Company is not in compliance with the conditions for such continued listing on such Principal Market;
or,

 

(e)         
the Company is in material breach of any covenant or condition of the Transaction Documents, and such breach, if subject to cure,
continues for a period of ten (10) business days; or,

 

(f)         
the Registration Statement is not declared effective by the SEC within six (6) months of the Filing Date; or,

    	 	 	 

    	 

    

(g)        
the Company’s failure to pay any taxes when due unless such taxes are being contested in good faith by appropriate proceedings
and with respect to which adequate reserves have been provided on the Company’s books; provided, however, that in the event
that such failure is curable, the Company shall have ten (10) business days to cure such failure; or,

 

(h)        
 an attachment or levy is made upon the Company’s assets having an aggregate value in excess of fifty thousand dollars ($50,000)
or a judgment is rendered against the Company or the Company’s property involving a liability of more than fifty thousand
dollars ($50,000) which shall not have been vacated, discharged, stayed or bonded pending appeal within ninety (90) days from
the entry hereof; or,

 

(i)          
any change in the Company’s condition or affairs (financial or otherwise) which in the Holder’s reasonable, good faith
opinion, would have a Material Adverse Effect; provided, however, that in the event that such failure is curable, the Company
shall have ten (10) business days to cure such failure; or,

 

(j)          
any Lien, except for Permitted Liens, created hereunder or under any of the Transaction Documents for any reason ceases to be
or is not a valid and perfected Lien having a first priority interest; or,

 

(k)        
the indictment or threatened indictment of the Company, any officer of the Company under any criminal statute, or commencement
or threatened commencement of criminal or civil proceeding against the Company or any officer of the Company pursuant to which
statute or proceeding penalties or remedies sought or available include forfeiture of any of the property of the company.

 

Section 6.2     
Remedies.

 

(a)               
In the Event of Default, the Holder may elect to secure a portion of the Company's assets in Pledged Collateral (as defined in
the Security Agreement). The Holder may also elect to garnish revenue from the Company in an amount that will repay the Holder
on the schedules outlined in this Debenture.

 

(b)              
In the Event of Default, as outlined in this Debenture, the Holder may elect to increase the Face Amount by two and one-half percent
(2.5%) per month (pro-rata for partial periods) paid as liquated damages (“Liquidated Damages”), compounded
daily. It is the intention and acknowledgement of both parties that the Liquidated Damages not be deemed as interest or a penalty
under the terms of this Debenture.

 

Section 6.3           
Acceleration. If an Event of Default occurs, the Holder by notice to the Company may declare the remaining principal
amount of this Debenture, and any liquidated damages, to be immediately due and payable in full.

 

Section 6.4           
Seniority. Except as provided in the Transaction Documents, the Company warrants that no indebtedness of the Company
is senior to this Debenture in right of payment, whether with respect to damages or upon liquidation or dissolution or otherwise.
The Company warrants that it has taken all necessary steps to subordinate its other obligations to the rights of the Holder hereunder.

 

Section 6.5Cost of Collections.
If an Event of Default occurs, the Company shall pay the Holder's reasonable costs of collection, including reasonable attorney's
fees and costs of arbitration.

 

Article 7Registered Debentures.

 

Section 7.1           
Record Ownership. The Company or its attorney shall maintain a register of the Holder of the Debentures (the “Register”)
showing their names and addresses and the serial numbers and principal amounts of Debentures issued to them. The Register may
be maintained in electronic, magnetic or other computerized form. The Company may treat the person named as the Holder of this
Debenture in the Register as the sole owner of this Debenture. The Holder of this Debenture is exclusively entitled to receive
payments on this Debenture, receive notifications with respect to this Debenture, convert it into Common Stock and otherwise exercise
all of the rights and powers as the absolute owner hereof.

    	 	 	 

    	 

    

Section 7.2           
Worn or Lost Debentures. If this Debenture becomes worn, defaced or mutilated but is still substantially intact
and recognizable, the Company or its agent may issue a new Debenture in lieu hereof upon its surrender. Where the Holder of this
Debenture claims that the Debenture has been lost, destroyed or wrongfully taken, the Company shall issue a new Debenture in place
of the Debenture if the Holder so requests by written notice to the Company.

 

Article 8Notice.

 

Any notices, consents,
waivers or other communications required or permitted to be given under the terms of this Debenture must be in writing and will
be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided
a confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one
(1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to
receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:MassRoots, Inc.

6525 Gunpark Drive,

Ste 370 #150,

Boulder, CO 80301

Telephone: (757) 705-4238

 

 

If to the Holder:[Name]

     [Address]

 

Each party hereto
shall provide five (5) business days prior notice to the other party hereto of any change in address, phone number or facsimile
number.

 

Article 9Time.

 

Where this Debenture authorizes
or requires the payment of money or the performance of a condition or obligation on a Saturday or Sunday or a holiday on which
the United States Stock Markets (“US Markets”) are closed (a “Holiday”), such payment shall
be made or condition or obligation performed on the last business day preceding such Saturday, Sunday or Holiday. A “business
day” shall mean a day on which the US Markets are open for a full day or half day of trading.

 

Article 10No Assignment.

 

This Debenture and the
obligations of the Company hereunder shall not be assignable by the Company without prior written consent of the Holder.

 

Article 11Rules of Construction.

 

In this Debenture, unless
the context otherwise requires, words in the singular number include the plural, and in the plural include the singular, and words
of the masculine gender include the feminine and the neuter, and when the tense so indicates, words of the neuter gender may refer
to any gender. The numbers and titles of sections contained in the Debenture are inserted for convenience of reference only, and
they neither form a part of this Debenture nor are they to be used in the construction or interpretation hereof. Wherever, in
this Debenture, a determination of the Company is required or allowed, such determination shall be made by a majority of the Board
of Directors of the Company and if it is made in good faith, it shall be conclusive and binding upon the Company and the Holder
of this Debenture. Any capitalized term used but not defined in this Debenture shall have the meaning ascribed to it in the Transaction
Documents.

 

Article 12Governing Law.

 

The validity, terms,
performance and enforcement of this Debenture shall be governed and construed by the provisions hereof and in accordance with
the laws of the Commonwealth of Massachusetts applicable to agreements that are negotiated, executed, delivered and performed
solely in the Commonwealth of Massachusetts.

    	 	 	 

    	 

    

Article 13Disputes Under Debenture.

 

All disputes arising under this Debenture shall be governed by and
interpreted in accordance with the laws of the Commonwealth of Massachusetts, without regard to principles of conflict of laws.
The parties to this Debenture shall submit all disputes arising under this Debenture to arbitration in Boston, Massachusetts before
a single arbitrator of the American Arbitration Association (the “AAA”). The arbitrator shall be selected by
application of the rules of the AAA, or by mutual agreement of the parties, except that such arbitrator shall be an attorney admitted
to practice law in the Commonwealth of Massachusetts. No party hereto will challenge the jurisdiction or venue provisions as provided
in this section. Nothing in this section shall limit the Holder's right to obtain an injunction for a breach of this Debenture
from a court of law. Any injunction obtained shall remain in full force and effect until the arbitrator, as set forth in Article
13, fully adjudicates the dispute.

 

Article 15 Waiver.

 

The Holder's delay or
failure at any time or times hereafter to require strict performance by the Company of any undertakings, agreements or covenants
shall not waive, affect, or diminish any right of the Holder under this Debenture to demand strict compliance and performance
herewith. Any waiver by the Holder of any Event of Default shall not waive or affect any other Event of Default, whether such
Event of Default is prior or subsequent thereto and whether of the same or a different type. None of the undertakings, agreements
and covenants of the Company contained in this Debenture, and no Event of Default, shall be deemed to have been waived by the
Holder, nor may this Debenture be amended, changed or modified, unless such waiver, amendment, change or modification is evidenced
by an instrument in writing specifying such waiver, amendment, change or modification and signed by the Holder.

 

Article 16Integration.

 

This Debenture is the
final definitive agreement between the Company and the Holder with respect to the terms and conditions set forth herein, and,
the terms of this Debenture may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the
parties hereto. The execution and delivery of this Debenture is done in conjunction with the execution of the other Transaction
Documents.

 

Article 17Failure To Meet Obligations
by the Company.

 

The Company acknowledges
that its failure to timely meet any of its obligations hereunder, including, but without limitation, its obligations to make payments,
deliver shares and, as necessary, to register and maintain sufficient number of shares, will cause the Holder to suffer irreparable
harm and that the actual damage to the Holder will be difficult to ascertain. Accordingly, the parties hereto agree that it is
appropriate to include in this Debenture a provision for liquidated damages. The parties acknowledge and agree that the liquidated
damages provision set forth in this section represents the parties’ good faith effort to quantify such damages and, as such,
agree that the form and amount of such liquidated damages are reasonable and do not constitute a penalty. The payment of liquidated
damages shall not relieve the Company from its obligations to deliver the Common Stock pursuant to the terms of this Debenture.

 

Article 18Representations and Warranties
of the Company.

 

The Company hereby
represents and warrants to the Holder that: (i) it is voluntarily issuing this Debenture of its own freewill, (ii) it is not issuing
this Debenture under economic duress, (iii) the terms of this Debenture are reasonable and fair to the Company, and (iv) the Company
has had independent legal counsel of its own choosing review this Debenture, advise the Company with respect to this Debenture,
and represent the Company in connection with its issuance of this Debenture.

    	 	 	 

    	 

    

Article 19Acknowledgements of the Parties.

 

Notwithstanding anything in this Agreement
to the contrary, the parties hereto hereby acknowledge and agree to the following: (i) the Holder makes no representations or
covenants that it will not engage in trading in the securities of the Company; (ii) the Company has not and shall not provide
material non-public information to the Holder unless prior thereto the Holder shall have executed a written agreement regarding
the confidentiality and use of such information; and (iii) the Company understands and confirms that the Holder will be relying
on the acknowledgements set forth in clauses (i) through (iii) above if the Holder effects any transactions in the securities
of the Company.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

    	 

    	 

    

 IN WITNESS WHEREOF,
the parties hereto have caused this Debenture to be duly executed on the day and year first above written.

 

 

		MASSROOTS, INC.
	 	 	 
	 	By:	 
	 	Name:	Isaac Dietrich
	 	Title:	Chief Executive Officer
	 	 	 
	 	 	 
	 	HOLDER	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

    	 

    	 

    

 

EXHIBIT A

 

NOTICE OF CONVERSION

 

MassRoots, Inc.

 

Re: Notice of Conversion

 

Gentlemen:

 

The undersigned hereby
irrevocably elects, as of ________________, to convert $________________ of its convertible debenture (the “Debenture”)
into Common Stock of MassRoots, Inc. (the “Company”) according to the conditions set forth in the Debenture
issued by the Company.

 

Date of Conversion_______________________________________________

 

 

Applicable Conversion Price________________________________________

 

 

Number of Shares Issuable upon this Conversion____________________

 

 

Name(Print): ________________________________________________

 

Address: ________________________________________________

 

Phone:________________________________________________

 

HOLDER

 

By: _______________________________________

Name:

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