Document:

CONSULTING
AGREEMENT

 

THIS AGREEMENT
(the “Agreement”), is made and entered into as of this 15 day of June 2015, by and between Demeter Capital, a Delaware
limited partnership, with offices at 130 Frederick Street, #102, San Francisco, CA 94117 (“Demeter” or the “Consultant”),
and MassRoots, Inc., a Delaware corporation, with offices at 1624
Market Street, Ste 201, Denver, CO 80202 (“MSRT”
or the “Company”) (together the “Parties”).

 

WHEREAS, Consultant is in the
business of investing in cannabis-related businesses and is well connected to many investors and businesses in the industry;

 

WHEREAS, the Company deems it
to be in its best interest to retain Consultant to assist in its growth and introductions; and

 

WHEREAS, the Parties desire
to set forth the terms and conditions under which Consultant shall provide services to the Company.

 

NOW, THEREFORE, in consideration
of the mutual promises and covenants herein contained, and other valid consideration, receipt of which is hereby acknowledged,
the Parties agree as follows:

 

Term
of Agreement

 

The Agreement shall remain in effect
from the date hereof through the expiration of a period of six months from the date hereof (the “Term”), and thereafter
may be renewed upon the mutual written consent of the Parties.

 

Nature
of Services to be Rendered.

 

1. During the Term and any renewal thereof,
Consultant shall use its best efforts to provide the Company with corporate consulting services in connection with introductions
to other investors and companies operating in the cannabis industry (collectively, the “Services”). It is acknowledged
and agreed by the Company that Consultant carries no professional licenses, and is not rendering legal advice or performing accounting
services, nor acting as an investment advisor or brokerage/dealer within the meaning of the applicable state and federal securities
laws. The Services of Consultant shall not be exclusive nor shall Consultant be required to render any specific number of hours
or assign specific personnel to the Company or its projects, however it is anticipated and agreed upon by both parties that considerable
time and resources will be required to fulfill the obligations to the Company under this agreement. The Consultant shall specifically
not provide any of the following services to the Company: (i) negotiation for the sale of any the Company's securities; (ii) discuss
details of the nature of the securities sold or whether recommendations were made concerning the sale of the securities; (iii)
engage in due diligence activities; (iv) provide advice relating to the valuation of or the financial advisability of any investments
in the Company; or (v) handle any funds or securities on behalf of the Company.

 

2. With respect to (c) above, the Consultant
will not have the authority to perform and will not perform any of the following in connection with its services: (i) the decision
to select the funder or approve a particular funder; (ii) participating or assisting in any negotiations concerning any funding
agreement; (iii) soliciting any potential funders or investors in connection with the offer or sale of the Company’s securities;
(iv) the distribution or preparation of any materials to potential funders; (iv) engaging in any form of general solicitation
or advertising in connection with the offer or sale of its securities, including but not limited to, any mass mailing, any advertisement,
article or notice published in any magazine, newspaper or newsletter and any seminar or meeting where the attendees have been
invited by any mass mailing, general solicitation or advertising; (v) provide financial advice to a potential funder or the Company
regarding a potential funder; (vi) provide the name of a potential funder to the Company that is not an Accredited Investor or
Institutional Investor as defined under the federal securities laws; and (vi) provide a recommendation to any potential funder
to invest in the Company.

 

    	 	 	 

    	 

    

Disclosure
of Information

 

Consultant agrees as follows:

 

The Consultant shall NOT disclose to
any third party any material non-public information or data received from the Company without the written consent and approval
of the Company other than: (i) to its agents or representatives that have a need to know in connection with the Services hereunder;
provided such agents and representatives have a similar obligation to maintain the confidentiality of such information; (ii) as
may be required by applicable law; provided, Consultant shall provide prompt prior written notice thereof to the Company to enable
the Company to seek a protective order or otherwise prevent such disclosure; and (iii) such information as becomes publicly known
through no action of the Consultant, or its agents or representatives.

 

Compensation.

 

The following represents the compensation
to be received by the Consultant in connection with rendering the Services hereunder:

 

Upon execution of the Agreement, the
Consultant shall purchase and the Company will issue to the Consultant 100,000 shares of the Company’s restricted common
stock (symbol: MSRT) for a total purchase price of $100.00 (the “Restricted Stock”) as per the Investment Representation
Letter (incorporated by reference into the Agreement and attached as Addendum A).

 

Representations and Warranties of
the Consultant.

 

In order to induce the Company to enter
into this Agreement, the Consultant hereby makes the following unconditional representations and warranties:

 

In connection with its execution of
and performance under this Agreement, the Consultant has not taken and will not take any action that will cause it to become required
to make any filings with or to register in any capacity with the Securities and Exchange Commission (the “SEC”), the
FINRA, the securities commissioner or department of any state, or any other regulatory or governmental body or agency. Neither
the Consultant nor any of its principals is subject to any

sanction or restriction imposed by
the SEC, the FINRA, any state securities commission or department, or any other regulatory or governmental body or agency, which
would prohibit, limit or curtail the Consultant’s execution of this Agreement or the performance of its obligation hereunder.

 

1.
The Consultant (i) has adequate means of providing for the Consultant’s current needs and possible personal contingencies,
(ii) is acquiring the Restricted Stock for investment purposes only and not with a view to their distribution and has no need
for liquidity, (iii) is able to bear the substantial economic risks of holding the Restricted Stock for an indefinite period,
(iv) is acquiring the Restricted Stock for its own account; (v) at the present time, can afford a complete loss of such investment,
and (vi) is, either in and of itself or by virtue of its principals, an “accredited investor” as defined in the Securities
Act of 1933, as amended.

 

2.
The Company and its officers, directors and agents have answered all inquiries that the Consultant has made of them concerning
the Company or any other matters relating to the formation, operation and proposed operation of the Company and the offering and
sale of the Restricted Stock.

 

3.
The Consultant, if a corporation, partnership, trust or other entity, is duly organized and in good standing in the state or country
of its incorporation and is authorized and otherwise duly qualified to purchase and hold the Restricted Stock. Such entity has
its principal place for business as set forth on the signature page hereof and has not been formed for the specific purpose of
acquiring the Restricted Stock unless all of its equity owners qualify as accredited individual investors.

 

    	 	 	 

    	 

    

4.
All information that the Consultant has provided to the Company concerning the Consultant, the Consultant’s financial position
and the Consultant’s knowledge of financial and business matters, or, in the case of a corporation, partnership, trust or
other entity, the knowledge of financial and business matters of the person making the investment decision on behalf of such entity,
including all information contained herein, is correct and complete as of the date set forth at the end hereof and may be relied
upon, and if there should be any material adverse change in such information prior to this subscription being accepted, the Consultant
will immediately provide the Company with such information.

 

5.
In rendering the services hereunder and in connection with the Restricted Stock, the Consultant agrees to comply with all applicable
federal and state securities laws, the rules and regulations thereunder, the rules and regulations of any exchange or quotation
service on which the Company’s securities are listed and the rules and regulations of the Financial Industry Regulatory
Authority. 

 

6. In connection with its execution of and performance under
this Agreement, the Consultant has not taken and will not take any action that will cause it to become required to make any
filings with or to register in any capacity with the Securities and Exchange Commission (the “SEC”), the FINRA,
the securities commissioner or department of any state, or any other regulatory or governmental body or agency. Neither the
Consultant nor any of its principals is subject to any sanction or restriction imposed by the SEC, the FINRA, any state
securities commission or department, or any other regulatory or governmental body or agency, which would prohibit, limit or
curtail the Consultant’s execution of this Agreement or the performance of its obligation hereunder.

 

Representations and Warranties of
the Company.

 

In order to induce the Consultant to
enter into this Agreement, the Company hereby makes the following unconditional representations and warranties:

 

The Company is not subject to any restriction
imposed by the SEC or by operation of the 1933 Act, the Exchange Act of 1934, as amended (the “1934 Act”) or any of
the rules and regulations promulgated under the 1933 Act or the 1934 Act which prohibit its execution of this Agreement or the
performance of its obligations to the Consultant set forth herein. The Company has not been sanctioned by the SEC, FINRA or any
state securities commissioner or department in connection with any issuance of its securities. All payments required to be made
on time and in accordance with the payment terms and conditions set forth herein.

 

Compliance with Securities Laws

 

The Parties acknowledge and agree that the Company is subject to the
requirements of the 1934 Act, and that the 1933 Act, the 1934 Act, the rules and regulations promulgated thereunder and the various
state securities laws (collectively, “Securities Laws”) impose significant burdens and limitations on the dissemination
of certain information about the Company by the Company and by persons acting for or on behalf of the Company. Each of the Parties
agrees to comply with all applicable Securities Laws in carrying out its obligations under the Agreement; and without limiting
the generality of the foregoing, the Company hereby agrees (i) all information about the Company provided to the Consultant by
the Company, which the Company expressly agrees may be disseminated to the public by the Consultant in providing any public relations
or other services pursuant to the Agreement, shall not contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements made, in light of the circumstances in which they were made, not misleading, (ii) the Company
shall promptly notify the Consultant if it becomes aware that it has publicly made any untrue statement of a material fact regarding
the Company or has omitted to state any material fact necessary to make the public statements made by the Company, in light of
the circumstances in which they were made, not misleading, and (iii) the Company shall promptly notify the Consultant of any “quiet
period” or “blackout period” or other similar period during which public statements by or on behalf of the Company
are restricted by any Securities Law. Each Party (an “indemnifying party”) hereby agrees, to the full extent permitted
by applicable law, to indemnify and hold harmless the other Party (the “indemnified party”) for any damages caused
to the indemnified party by the indemnifying party’s breach or violation of any Securities Law, except to the extent that
the indemnifying party’s breach or violation of a Securities Law is caused by the indemnified party’s breach or violation
of the Agreement, or any Securities Law.

    	 	 	 

    	 

    

Issuance
of Restricted Stock to Consultant

 

The Restricted Stock shall be issued
as fully paid and non-assessable securities. The Company shall take all corporate action necessary for the issuance Restricted
Stock, to be legally valid and irrevocable, including obtaining the prior approval of its Board of Directors.

 

Registration
Obligations.

 

At any time following the signing of
the Agreement if the Company files a registration statement with the SEC registering an amount of securities equal to at least
$500,000 (“Registration Statement”), the Company must provide a ten (10) day prior written notice of the Registration
Statement to the Consultant and must provide piggy back registration rights and include the consultant’s shares in the Registration
Statement.

 

Applicable
Law.

 

This Agreement shall be governed by
the laws of the State of Florida. The parties agree that, should any dispute arise concerning this Agreement, the venue for the
dispute shall be the Courts of Palm Beach County, Florida, using Florida law without reference to any choice of law considerations.

 

Entire
Understanding/Incorporation of other Documents.

 

The Agreement contains the entire understanding
of the Parties with regard to the subject matter hereof, superseding any and all prior agreements or understandings whether oral
or written, and no further or additional agreements, promises, representations or covenants may be inferred or construed to exist
between the Parties.

 

No Assignment or Delegation Without
Prior Approval.

 

No portion of the Agreement or any
of its provisions may be assigned, nor obligations delegated, to any other person or party without the prior written consent of
the Parties except by operation of law or as otherwise set forth herein.

 

Survival of Agreement.

 

The Agreement and all of its terms
shall inure to the benefit of any permitted assignees of or lawful successors to either Party.

 

Independent
Contractor.

 

Consultant agrees to perform
its consulting duties hereto as an independent contractor. Nothing contained herein shall be considered to create an
employer-employee relationship between the parties to this Agreement. Consultant understands that since the Consultant is not
an employee of the Company, the Company will not withhold income taxes or pay any employee taxes on its behalf, nor will it
receive any fringe benefits. The Consultant shall not have any authority to assume or create any obligations, express or
implied, on behalf of the Company and shall have no authority to represent the Company as agent, employee or in any other
capacity that as herein provided. The Consultant does hereby indemnify and hold harmless the Company from and against
any and all claims, liabilities, demands, losses or expenses incurred by the Company if 1) the Consultant fails to pay any
applicable income and/or employment taxes (including interest or penalties of whatever nature), in any amount, relating to
the Consultant’s rendering of consulting services to the Company, including any attorney’s fees or costs to the
prevailing party to enforce this indemnity or (2) Consultant takes any action or fails to take any action in accordance with
the Company’s instructions. The Consultant shall be responsible for obtaining workers’ compensation insurance
coverage and agrees to indemnify, defend and hold the Company harmless of and from any and all claims arising out of any
injury, disability or death of the Consultant.

 

No Amendment Except in Writing.

 

Neither the Agreement nor any of its provisions may be altered or
amended except in a dated writing signed by the Parties.

    	 	 	 

    	 

    

Waiver
of Breach.

 

No waiver of any breach of any provision hereof shall be
deemed to constitute a continuing waiver or a waiver of any other portion of the Agreement.

 

Severability
of the Agreement.

 

Except as otherwise provided herein,
if any provision hereof is deemed by arbitration or a court of competent jurisdiction to be legally unenforceable or void, such
provision shall be stricken from the Agreement and the remainder hereof shall remain in full force and effect.

 

Non-Circumvention. The parties
agree that confidential Information shall not be used for the enrichment, directly or indirectly, of the Recipient or its affiliates,
without the express written consent of Owner. The parties further agree that following receipt of Confidential Information from
Owner including but not limited to relationships and business contacts, Recipient shall not contract or attempt to sell to, transact
with or purchase from Owner-provided sources without the written permission from Owner unless (i) a business relationship between
Recipient and Owner-provided source predated this Agreement, and (ii) Recipient can substantiate exchanges specific to the Owner-disclosed
information between Recipient and the Owner-provided source prior to the date of the signing of this Agreement.

 

Termination
of the Agreement. 

 

The Company may terminate the Agreement,
with or without cause, by providing written notification to the Consultant. The Agreement will terminate following the date of
the written notification by the Company (“Date of Termination”). In the event of termination of the Agreement by the
Company, the Consultant shall be entitled to keep any and all Company stock previously issued to the Consultant.

 

Counterparts
and Facsimile Signature.

 

This Agreement may be executed simultaneously
in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and
the same instrument. Execution and delivery of this Agreement by exchange of facsimile copies bearing the facsimile signature
of a party hereto shall constitute a valid and binding execution and delivery of this Agreement by such party. Such facsimile
copies shall constitute enforceable original documents.

 

No
Construction Against Drafter.

 

The Agreement shall be construed without
regard to any presumption or other requiring construction against the Party causing the drafting hereof.

 

 

IN WITNESS WHEREOF,
the parties hereto have duly executed and delivered this Agreement, effective as of the date set forth above.

 

		MassRoots,
Inc.	 	Demeter Capital, LLC
	 	 	 	 
	By:	/s/ Isaac Dietrich 	By:	/s/ Morgan Paxhia
	 	Isaac Dietrich, CEO	 	Morgan Paxhia, PartnerEXHIBIT 10.1

 

July 6, 2015

 

William Tracy

6 Massachusetts Blvd

Bellerose Village, NY  11001

 

Dear Bill:

 

I am pleased to extend an offer of employment to join The Bon-Ton Stores, Inc., as Chief Operating Officer reporting to Kathy Bufano, President & Chief Executive Officer.  In this role, you will have responsibility for Information Systems, Stores, Loss Prevention & Visual, Distribution & Logistics, Real Estate, and Human Resources.

 

In recognition of your responsibilities, your base salary will be $650,000 annually, paid according to the established bi-weekly payroll calendar.

 

We would anticipate your start date to be no later than July 27, 2015.

 

Performance Incentive Program

 

You will be eligible to participate in the Cash Bonus Program.

 

Your target bonus is 75% of base salary, a threshold of 37.5%, and a maximum of 150% for achievement of pre-determined objectives.  Your objectives for 2015 are 70% Company adjusted EBITDA to plan and 30% on Company sales dollars to plan.  Payouts at threshold or above are made upon the achievement of the minimum company Net Income threshold, as well as the achievement of your individual metrics.  For 2015, an initial payout of 12.5% or 25% of target will be made to all eligible executives if the Company meets a minimum adjusted EBITDA level as approved by the Board.

 

For 2015, you will be guaranteed a minimum payout of $230,000.  A one-time payment of $115,000, net of all applicable taxes, will be paid at the first pay period after your start date and another $115,000, net of all applicable taxes, paid at the time of our normal bonus program payout on or about April 15, 2016.

 

If your employment should be terminated not for cause or for death or disability, you or your beneficiary will receive a pro-rated portion of the performance bonus that would have been earned based on the number of days employed out of 365.

 

Each year the metrics and payouts are evaluated and approved by the Human Resource Compensation Committee of the Board of Directors.

 

Long-Term Incentive

 

Part of your compensation package are long-term incentives in the form of Restricted Stock Units (time-based) and Performance shares.  The Restricted Stock units (time-based) have a three-year cliff vest.  The 2015, performance shares are based 100% on the Company cumulative adjusted EBITDA to plan for the three-year period of fiscal 2015-2017, net of all incentive payments.  The lowest payout level for 2015 is set at 25% of target for achievement of  95.9% of plan.  The maximum payout is 150% of target.  Any payment above target requires a positive shareholder return (TSR.)

 

 

At time of hire, you will be awarded 120,000 shares of restricted stock with a three-year cliff vest.  These are time based, not performance based.  Should your employment be involuntarily terminated not for cause, the Restricted Stock shall vest as follows: if occurs prior to the first anniversary of the Date of Grant, the Restricted Stock shall vest one-third on the first anniversary of the Date of Grant, one-third on the second anniversary of the Date of Grant and the remainder on the third anniversary of the Date of Grant; if occurs after the first anniversary of the Date of Grant and before the second anniversary of the Date of Grant, the Restricted Stock shall vest two-thirds on the second anniversary of the Date of Grant and the remainder on the third anniversary of the Date of Grant; and if  occurs after the second anniversary of the Date of Grant and before the third anniversary of the Date of Grant, the Restricted Stock shall vest on the third anniversary of the Date of Grant.

 

Commuting Expenses

 

Expenses defined as commuting by our Tax department will be reimbursed up to $50,000 on an annual basis.  Commuting expenses are expected to be airfare to and from home to place of business, apartment or hotel in Milwaukee and/or York, and transportation while in Milwaukee and/or York.  This will not include meals.  Commuting expense are defined by the IRS as taxable income.  You will be responsible for all taxes as it applies to your commuting expenses.

 

Other Expenses

 

We will reimburse you for accountant expenses as it relates to your employment transition up to $7,500.  You will be responsible for all taxes as it applies to your these expenses.

 

Performance Appraisals

 

Performance Appraisals are conducted annually and based on results for the previous fiscal year. You will be eligible for a performance review and merit increase for your 2015 performance in May 2016.

 

Benefits

 

You will be eligible to participate in our medical/prescription, dental, vision, supplemental life, long-term disability, and group legal plans on the 1st day after your 90th day of employment.

 

You will be eligible for 4 weeks of vacation in 2015.  Effective in 2016 and forward you will be eligible for 5 weeks of vacation.  Because these exceptions are made on a case by case basis, we ask you to treat this exception as confidential.

 

Executive Severance Plan

 

If your employment is terminated without cause, you will be provided one year of severance net of any pay from another employer, and a COBRA stipend, until otherwise qualified for health insurance by another employer, in exchange for the execution of the Non-Compete/Non-Solicitation agreement and a release of waiver and claims, as currently defined by our Executive Severance Plan.  Please find enclosed a copy of these agreements for your review.

 

 

D & O Insurance

 

You will be protected as an officer of the Company under our Director & Officer Insurance policy upon your date of hire.

 

Given you accept our offer and the information provided, please sign, date, and return one copy of the offer to me.  We look forward to your future success on the Bon Ton team!

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
THE   BONwTON STORES, INC.
    
	
 
    	
 
    
	
 
    	
/s/ Denise Domian
    
	
 
    	
Denise M. Domian
    
	
 
    	
SVP, Human Resources
    

 

ACKNOWLEDGEMENT:

Please return a signed and dated copy of this letter to me.

 

 

	
/s/William Tracy
    	
 
    
	
William Tracy

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