Document:

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. () 201_ 1-__

 

Dated: []

 

MassRoots, Inc., a corporation organized
under the laws of the State of Delaware (the “Company”), hereby certifies that, for value received from [],
a Washington resident (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the
Company up to a total of [] shares of the common stock , $0.001 par value per share (the “Common Stock”), of
the Company (the “Warrant Shares”), at an exercise price equal to [] ($[]) per share (the “Exercise
Price”). This Warrant may be exercised any time after issuance through and including the fifth (5th) 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.

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(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.

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(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 ten (10) 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 for the first day after the Delivery Date that the Warrant Shares are not delivered, and an additional two percent (2.0%)
of the dollar value of the Warrant Shares to be issued after the Delivery Date for every thirty (30) days thereafter 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 ten (10) 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 ten (10) business days following the Delivery Date.

 

4. 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.

 

5.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.

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6.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.

 

7.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.

 

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(c)Omitted

 

(d)Omitted

 

(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:

 

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(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.

 

8.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.
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

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	 		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.

 

9.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.

 

10.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:

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If to the Company:

 

MassRoots, Inc.

1624 Market St, Ste 201

Denver, CO 80202

 

If to the Holder:

[]

 

11.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.

 

12.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)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.

 

(d)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.

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(e)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.

 

(f)Any capitalized term used but
not defined in this Warrant shall have the meaning ascribed to it in the Subscription Agreement, of even date herewith, by and
between the Company and the Holder.

 

(g)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.

 

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

 

(i)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 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 (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.

 

14. Disputes Under This Agreement.

 

All disputes arising under this Warrant
shall be governed by and interpreted in accordance with the laws of the State of Delaware, without regard to principles of conflict
of laws. The parties hereto will submit all disputes arising under this Agreement to arbitration in Denver, Colorado 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 State of Colorado. No party hereto will challenge the jurisdiction or venue provisions provided in this
Section 14. Nothing in this Section

 

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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.

 

 [Signature on Following Page]

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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

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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)

    	 	12March 29, 2016

 

PERSONAL AND CONFIDENTIAL

 

MassRoots, Inc.

1624 Market St, Ste 201 

Denver, CO 80202

 

Dear Isaac:

 

This letter will confirm
the understanding and agreement (the “Agreement”) between Chardan Capital Markets, LLC (“Broker”
or “Chardan”) and MassRoots, Inc. (the “Company”) as follows:

 

1.Engagement:The
Company hereby engages Broker as its non-exclusive agent in the private or public placement(s) of one or more classes or series
of registered or unregistered securities of the Company of up to $10 million. Such securities (the “Securities”)
may take the form of common stock or other equity-linked securities or any combination thereof and may be on a best efforts basis
or a firm-commitment underwritten offerings. Such placements shall be referred to as the “Transactions”). The
terms of any such Transaction and the Securities shall be mutually agreed upon by the Company and Chardan and nothing herein constitutes
that Chardan would have the power or authority to bind the Company or any investors or an obligation for the Company to issue
any Securities or complete the Transaction. Broker may retain other brokers or dealers to act as sub-agents or selected-dealers
on its behalf in connection with such Transactions.

 

			

2.Broker’s
Role: Broker hereby accepts the engagement described herein and, in that connection, agrees to:

 

		(a)	Review
                                         any offering documents used in connection with each Transaction (the “Offering
                                         Documents”) describing the Company and the Securities;

 

		(b)	review
                                         with the Company the investors to whom the Offering Documents will be provided;

 

		(c)	assist
                                         in the preparation of other communications to be used in placing the Securities, whether
                                         in the form of letter, circular, notice or otherwise; and

 

    	 	Chardan Capital Markets, LLC
 17 State Street, Suite 1600
New York, NY 10004
1
	 

    	 

    

		(d)	assist
                                         and advise the Company with respect to the negotiation of the sale of the Securities
                                         to the investors.

 

Chardan understands that
the Company reserves the right to reject the subscription of any investor, including the Chardan Investors (as defined below),
in whole or in part, in its sole and absolute discretion.

 

	Term; Non-Exclusivity: This non-exclusive engagement will commence on
the date hereof and terminate five business days following the date on which the party receives written notice from the other
party of termination of this engagement for any reason or no reason; provided that no such notice may be given by the Company
for a period of 1 month after the date hereof. Notwithstanding anything herein to the contrary, during Broker’s engagement
hereunder: other than with or through Maxim Group LLC (i) the Company will not, and will not permit its representatives to, other
than in coordination with Broker, contact or solicit institutions, corporations or other entities or individuals as potential
purchasers of the Securities and (ii) the Company will not pursue any financing transaction which would be in lieu of a Transaction.
Upon termination of this Agreement the Company shall pay to Broker all fees earned and reimburse Broker for all expenses incurred,
in accordance with Paragraphs 7 and 8 hereof, respectively. The Company agrees to pay Broker any fees specified in Paragraph 7
during the time limitations specified herein. The Company agrees that this section 3 and the provisions relating to the payment
of fees, reimbursement of expenses, indemnification and contribution, confidentiality, conflicts, independent contractor and waiver
of the right to trial by jury will survive any termination of this letter agreement.

 

	Best Efforts: It is understood that Broker’s involvement in a Transaction
is strictly on a reasonable best efforts basis (unless and until the Broker signs an underwriting agreement for an underwritten
offering) and that the consummation of a Transaction will be subject to, among other things, market conditions. It is understood
that Broker’s assistance in a Transaction will be subject to the satisfactory completion of such investigation and inquiry
into the affairs of the Company as Broker deems appropriate under the circumstances (such investigation hereinafter to be referred
to as “Due Diligence”) and to the receipt of all internal approvals of Broker in connection with the Transaction.
Broker shall have the right in its sole discretion to terminate this Agreement if the outcome of the Due Diligence is not satisfactory
to Broker or if approval of its internal committees is not obtained.

 

	Information: The Company shall furnish, or cause to be furnished, to Broker all information requested by
                                           Broker                                            for the purpose of rendering services hereunder (all such information being
                                           the “Information”). In                                            addition, the Company agrees to make
                                           available to Broker upon request from time to time the officers, directors, accountants,
                                           counsel and other advisors of the Company. The Company recognizes and confirms that Broker (a) will use and rely on the
                                           Information, including the Offering Documents, and on information available from generally recognized public sources
                                           in performing the services contemplated by this Agreement without having independently verified the same; (b) does not
                                           assume                                            responsibility for the accuracy or completeness of the Offering Documents
                                           or the Information and such other information; and                                            (c) will not make an appraisal
                                           of any of the assets or liabilities of the Company. Upon reasonable request, the Company will
                                           meet with Broker or its representatives to discuss all information relevant for disclosure in the Offering Documents and
                                           will                                            cooperate in any investigation undertaken by Broker thereof, including any
                                           document included or incorporated by reference                                            therein. Broker shall be a third
                                           party beneficiary of any representations, warranties and covenants made by the Company to
                                           any Investor in a best efforts Transaction.,

 

    	 	Chardan Capital Markets, LLC
 17 State Street, Suite 1600
New York, NY 10004
2
	 

    	 

    

	Related Understandings and Agreements:

 

		(a)	If
                                         required by Broker, the Company shall enter into a Placement Agency Agreement or underwriting
                                         agreement, as applicable, with Broker that is substantially consistent with Broker’s
                                         standard form, modified as appropriate to reflect the terms of the applicable Transaction
                                         and containing such terms, covenants, conditions, representations, warranties, and providing
                                         for the delivery of legal opinions, comfort letters and officer’s certificates,
                                         all in form and substance satisfactory to Broker and its counsel.

 

		(b)	Unless
                                         the Transaction is an underwritten offering by Broker, in which case the Company shall
                                         enter into an underwriting agreement with Broker that is customary for such offerings,
                                         if required by the Investors, the sale of Securities to any Investor will be evidenced
                                         by a purchase agreement (“Purchase Agreement”) between the Company
                                         and such Investor in a form reasonably satisfactory to the Company and Broker. Prior
                                         to the signing of any Purchase Agreement, officers of the Company with responsibility
                                         for financial affairs will be available to answer inquiries from prospective investors.

 

		(c)	Notwithstanding
                                         anything herein to the contrary, in the event that Broker determines that any of the
                                         terms provided for hereunder shall not comply with a FINRA rule, including but not limited
                                         to FINRA Rule 5110, then the Company shall agree to amend this Agreement (or include
                                         such revisions in the final underwriting or placement agency agreement) in writing upon
                                         the request of Broker to comply with any such rules; provided that any such amendments
                                         shall not provide for terms that are less favorable to the Company.

 

    	 	Chardan Capital Markets, LLC
 17 State Street, Suite 1600
New York, NY 10004
3
	 

    	 

    

		(d)	Chardan
                                         is duly registered with the United States Securities and Exchange Commission (the “SEC”)
                                         under Section 15 of the Securities Exchange Act of 1934, as amended, as a broker-dealers
                                         and are members in good standing of the Financial Industry Regulatory Authority (“FINRA”)
                                         and is registered in those states in which it is required to be so registered in order
                                         to perform its obligations under this Agreement.

 

	Fees:
As compensation for the services to be rendered by Broker hereunder, the Company will pay Broker the following fee or underwriting
discount (“Transaction Fee”):

 

		(a)	A
                                         cash fee (or underwriting discount, as applicable) payable immediately upon the closing
                                         of each Transaction and equal to 10% of the aggregate gross proceeds raised in such Transaction
                                         from Investors Chardan had contacted or introduced, directly or indirectly, to the Company
                                         (“Chardan Investors”) and 2% of the aggregate gross proceeds raised
                                         in any such Transaction from Investors that are not Chardan Investors. The parties acknowledge
                                         and agree that Chardan Investors shall include, but not be limited to, the investors
                                         (and any affiliates of such investors) set forth on Annex A attached hereto. All
                                         cash Transaction Fees shall be paid at the closing of a Transaction through a third party
                                         escrow agent from the gross proceeds of the Securities sold in a best efforts offering
                                         or delivery versus payment if in an underwritten offering.

 

		(b)	The
                                         Company also agrees to reimburse Broker’s out-of-pocket expenses on a non-accountable
                                         basis equal to $150,000 for background checks, road show expenses and legal fees of its
                                         counsel. Background check expenses shall be paid by the Company as incurred by the Broker.

 

		(c)	Broker
                                         shall be entitled to a Transaction Fee under clauses (a) and (b) hereunder, calculated
                                         in the manner set forth therein, with respect to any public or private offering or other
                                         financing or capital-raising transaction of any kind (“Tail Financing”)
                                         to the extent that such financing or capital is provided to the Company by Chardan Investors,
                                         if such Tail Financing is consummated at any time within the 6-month period following
                                         the expiration or termination of this Agreement.

 

		(d)	The
                                         Company will grant Chardan a twelve (12) month right of participation to act as co-lead
                                         underwriter or placement agent for 50% of the transaction on any future capital raising
                                         transactions involving the Company’s securities in which the Company elects to
                                         engage an investment banker or placement agent.

    	 	Chardan Capital Markets, LLC
 17 State Street, Suite 1600
New York, NY 10004
4
	 

    	 

    

 

	Indemnification:

 

		(a)	To
                                         the extent permitted by law, the Company will indemnify Broker and its affiliates, stockholders,
                                         directors, officers, employees and controlling persons (within the meaning of Section
                                         15 of the Securities Act or Section 20 of the Exchange Act) against all losses, claims,
                                         damages, expenses and liabilities, as the same are incurred (including the reasonable
                                         fees and expenses of counsel), relating to or arising out of its activities hereunder
                                         or pursuant to this engagement letter, except to the extent that any losses, claims,
                                         damages, expenses or liabilities (or actions in respect thereof) are found in a final
                                         judgment (not subject to appeal) by a court of law to have resulted primarily and directly
                                         from Broker’s willful misconduct or gross negligence in performing the services
                                         described herein.

 

		(b)	Promptly
                                         after receipt by Broker of notice of any claim or the commencement of any action or proceeding
                                         with respect to which Broker is entitled to indemnity hereunder, Broker will notify the
                                         Company in writing of such claim or of the commencement of such action or proceeding,
                                         and the Company will assume the defense of such action or proceeding and will employ
                                         counsel reasonably satisfactory to Broker and will pay the fees and expenses of such
                                         counsel. Notwithstanding the preceding sentence, Broker will be entitled to employ counsel
                                         separate from counsel for the Company and from any other party in such action if counsel
                                         for Broker reasonably determines that it would be inappropriate under the applicable
                                         rules of professional responsibility for the same counsel to represent both the Company
                                         and Broker. In such event, the reasonable fees and disbursements of no more than one
                                         such separate counsel will be paid by the Company, in addition to local counsel. The
                                         Company will have the exclusive right to settle the claim or proceeding provided that
                                         the Company will not settle any such claim, action or proceeding without the prior written
                                         consent of Broker, which will not be unreasonably withheld.

 

		(c)	The
                                         Company agrees to notify Broker promptly of the assertion against it or any other person
                                         of any claim or the commencement of any action or proceeding relating to a transaction
                                         contemplated by this engagement letter.

 

    	 	Chardan Capital Markets, LLC
 17 State Street, Suite 1600
New York, NY 10004
5
	 

    	 

    
		(d)	If
                                         for any reason the foregoing indemnity is unavailable to Broker or insufficient to hold
                                         Broker harmless, then the Company shall contribute to the amount paid or payable by Broker
                                         as a result of such losses, claims, damages or liabilities in such proportion as is appropriate
                                         to reflect not only the relative benefits received by the Company on the one hand and
                                         Broker on the other, but also the relative fault of the Company on the one hand and Broker
                                         on the other that resulted in such losses, claims, damages or liabilities, as well as
                                         any relevant equitable considerations. The amounts paid or payable by a party in respect
                                         of losses, claims, damages and liabilities referred to above shall be deemed to include
                                         any legal or other fees and expenses incurred in defending any litigation, proceeding
                                         or other action or claim. Notwithstanding the provisions hereof, Broker’s share
                                         of the liability hereunder shall not be in excess of the amount of fees actually received,
                                         or to be received, by Broker under this engagement letter (excluding any amounts received
                                         as reimbursement of expenses incurred by Broker).

 

		(e)	These
                                         indemnification provisions shall remain in full force and effect whether or not the transaction
                                         contemplated by this engagement letter is completed and shall survive the termination
                                         of this engagement letter, and shall be in addition to any liability that the Company
                                         might otherwise have to any indemnified party under this engagement letter or otherwise.

 

		9.	Governing
                                         Laws: This letter agreement will be governed by and construed in accordance with
                                         the laws of the State of New York applicable to agreements made and to be fully performed
                                         therein. The Company irrevocably submits to the jurisdiction of any court of the State
                                         of New York located in the City and County of New York or in the United States District
                                         Court for the Southern District of New York for the purpose of any suit, action or other
                                         proceeding arising out of this letter agreement or our engagement hereunder.

 

			Each
                                         of the Company and Broker hereby waives any right it may have to a trial by jury in respect
                                         of any claim brought by or on behalf of either party based upon, arising out of or in
                                         connection with this letter agreement, our engagement hereunder or the Transaction contemplated
                                         hereby.

 

			All
                                         fees and expenses payable hereunder will be payable in U.S. dollars in cash. The Company
                                         hereby irrevocably consents to the service of process in any proceeding by the mailing
                                         of copies of such process to the Company at its address set forth above.

 

		10.	Confidentiality:
                                         Except as required by law, this Agreement and the services and advice to be provided
                                         by Broker hereunder, shall not be disclosed to third parties without
Broker’s prior written permission. Notwithstanding, Broker shall be permitted to advertise the services it provided in connection
with each Transaction subsequent to the consummation of such Transaction. Such expense shall not be reimbursable under paragraph
7 hereof.

    	 	Chardan Capital Markets, LLC
 17 State Street, Suite 1600
New York, NY 10004
6
	 

    	 

    

 

		11.	No
                                         Brokers: The Company represents and warrants to Broker that there are no brokers,
                                         representatives or other persons which have an interest in compensation due to Broker
                                         from any transaction contemplated herein or which would otherwise be due any fee, commission
                                         or remuneration upon consummation of any Transaction.

 

		12.	Authorization:
                                         The Company and Broker represent and warrant that each has all requisite power and authority
                                         to enter into and carry out the terms and provisions of this Agreement and the execution,
                                         delivery and performance of this Agreement does not breach or conflict with any agreement,
                                         document or instrument to which it is a party or bound.

 

		13.	Independent
                                         Contractor: The Company acknowledges that in performing its services, Broker
                                         is acting as an independent contractor, and not as a fiduciary, agent or otherwise, of
                                         the Company or any other person. The Company acknowledges that in performing its services
                                         hereunder, Broker shall act solely pursuant to a contractual relationship on an arm’s
                                         length basis (including in connection with determining the terms of any Transaction).
                                         Any review by Broker of the Company, the transaction contemplated hereby or other matters
                                         relating to such transactions has been and shall be performed solely for the benefit
                                         of Broker and shall not be on behalf of the Company. The Company agrees that is shall
                                         not claim that Broker owes a fiduciary duty to the Company in connection with such Transaction
                                         or the process leading thereto. No one other than the Company is authorized to rely upon
                                         engagement of Broker hereunder or any statements, advice, opinions or conduct by Broker.
                                         The Company further acknowledges that Broker may perform certain of the services described
                                         herein through one or more of its affiliates and any such affiliates shall be entitled
                                         to the benefit of this Agreement. This Paragraph 13 shall survive the termination or
                                         expiration of this Agreement.

 

		14.	Conflicts:
                                         The Company acknowledges that Broker and its affiliates may have and may continue to
                                         have investment banking and other relationships with parties other than the Company pursuant
                                         to which Broker may acquire information of interest to the Company. Broker shall have
                                         no obligation to disclose such information to the Company or to use such information
                                         in connection with any contemplated transaction.

 

    	 	Chardan Capital Markets, LLC
 17 State Street, Suite 1600
New York, NY 10004
7
	 

    	 

    

		15.	Anti-Money
                                         Laundering: To help the United States government fight the funding of terrorism
                                         and money laundering, the federal laws of the United States requires all financial institutions
                                         to obtain, verify and record information that identifies each person with whom they do
                                         business. This means we must ask you for certain identifying information, including a
                                         government-issued identification number (e.g., a U.S. taxpayer identification number)
                                         and such other information or documents that we consider appropriate to verify your identity,
                                         such as certified articles of incorporation, a government-issued business license, a
                                         partnership agreement or a trust instrument.

 

		16.	Miscellaneous:
                                         This Agreement constitutes the entire understanding and agreement between the Company
                                         and Broker with respect to the subject matter hereof (or of similar subject matter) and
                                         supersedes all prior engagements, understandings or agreements between the parties (including,
                                         but not limited to, agreements between the parties dated March 3, 2015, June 9, 2015,
                                         and September 24, 2015), whether oral or written, express or implied. Any amendments
                                         or modifications must be executed in writing by both parties. It is understood and agreed
                                         that Broker’s services hereunder will not include providing any tax, accounting,
                                         legal or regulatory advice or developing any tax strategies for the Company. This Agreement
                                         and all rights, liabilities and obligations hereunder shall be binding upon and inure
                                         to the benefit of each party’s successors but may not be assigned without prior
                                         written approval of the other party. This Agreement may be executed in any number of
                                         counterparts, each of which shall be deemed to be an original, but such counterparts
                                         shall, together, constitute only one instrument. The descriptive headings of the Paragraphs
                                         of this Agreement are inserted for convenience only, do not constitute a part of this
                                         Agreement and shall not affect in anyway the meaning or interpretation of this
                                         Agreement.

 

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

    	 	Chardan Capital Markets, LLC
 17 State Street, Suite 1600
New York, NY 10004
8
	 

    	 

    

			

If all the foregoing is
acceptable to you, please so indicate by signing in the space provided below and returning a signed copy of this letter to us
for our records.

 

Broker is delighted to
accept this engagement and looks forward to working with you. Please confirm that the foregoing correctly set forth our agreement
by signing the enclosed duplicate of this letter in the space provided and returning it, whereupon this letter shall constitute
a binding agreement as of the date first above written.

 

 

Very truly yours,

 

CHARDAN CAPITAL MARKETS,
LLC

 

By: /s/ Jonas Grossman

Name: Jonas Grossman

Title: Managing Partner

 

 

 

ACCEPTED AND AGREED TO

AS OF THE ABOVE DATE:

 

MASSROOTS, INC.

 

 

BY: /s/ Isaac Dietrich

Name: Isaac Dietrich

Title: Chief Executive
Officer

    	 	Chardan Capital Markets, LLC
 17 State Street, Suite 1600
New York, NY 10004
9

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