SEC Contract Filing

Filing Date: 2017-08-18

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>5
<FILENAME>msrt8k081617ex10_2.htm
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.2</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITY AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This SECURITY AGREEMENT,
dated as of August [ ], 2017 (this &ldquo;<U>Agreement</U>&rdquo;), is among MassRoots, Inc., a Delaware corporation (the &ldquo;<U>Company</U>&rdquo;
or the &ldquo;<U>Debtor</U>&rdquo;), and the holders of the Company&rsquo;s Convertible Secured Promissory Notes due 6 months
following their issuance, in the original aggregate principal amount of $_________ (collectively, the &ldquo;<U>Notes</U>&rdquo;)
signatory hereto, their endorsees, transferees and assigns (collectively, the &ldquo;<U>Secured Parties</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>W I T N E S S E T H:</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, pursuant
to the Purchase Agreement (as defined in the Notes), the Secured Parties have severally agreed to extend the loans to the Company
evidenced by the Notes; and</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, in order
to induce the Secured Parties to extend the loans evidenced by the Notes, the Debtor has agreed to execute and deliver to the
Secured Parties this Agreement and to grant the Secured Parties, pro rata based on the sum invested and through the Agent (as
defined in Section 18 hereof), a security interest in certain property of such Debtor to secure the prompt payment, performance
and discharge in full of all of the Company&rsquo;s obligations under the Notes; and</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">NOW, THEREFORE,
in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Certain
Definitions</B>. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used
but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as &ldquo;account&rdquo;, &ldquo;chattel
paper&rdquo;, &ldquo;commercial tort claim&rdquo;, &ldquo;deposit account&rdquo;, &ldquo;document&rdquo;, &ldquo;equipment&rdquo;,
&ldquo;fixtures&rdquo;, &ldquo;general intangibles&rdquo;, &ldquo;goods&rdquo;, &ldquo;instruments&rdquo;, &ldquo;inventory&rdquo;,
&ldquo;investment property&rdquo;, &ldquo;letter-of-credit rights&rdquo;, &ldquo;proceeds&rdquo; and &ldquo;supporting obligations&rdquo;)
shall have the respective meanings given such terms in Article 9 of the UCC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Collateral</U>&rdquo;
means the collateral in which the Secured Parties are granted a security interest by this Agreement and which shall include the
following personal property of the Debtor, whether presently owned or existing or hereafter acquired or coming into existence,
wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds,
products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of
insurance covering the same and of any tort claims in connection therewith, and all dividends, interest, cash, notes, securities,
equity interest or other property at any time and from time to time acquired, receivable or otherwise distributed in respect of,
or in exchange for, any or all of the Pledged Securities (as defined below):</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances,
furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature
and wherever situated, together with all documents of title and documents representing the same, all additions and accessions
thereto, replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and
useful in connection with the Debtor&rsquo;s businesses and all improvements thereto; and (B) all inventory;</P>

<P STYLE="font: 10pt Times New Roman, Times,