FACE OF NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”), TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
PAYMENT HEREUNDER IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THIS SECURITY AND THE COMMON STOCK, IF ANY, ISSUABLE UPON CONVERSION OF THIS
SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION
HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER:
(1)    REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED
INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT)
AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH
ACCOUNT, AND
(2)    AGREES FOR THE BENEFIT OF Workhorse Group Inc. (THE “COMPANY”) THAT IT
WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY
BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR
AFTER THE ISSUE DATE HEREOF OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE
144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO AND (Y) SUCH
LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT:
(A)    TO THE COMPANY OR ANY SUBSIDIARY THEREOF, OR
(B)    PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE
SECURITIES ACT, OR
(C)    TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, OR
(D)    PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT OR ANY OTHER
144498.00005

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AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH CLAUSE (2)(D)
ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF
SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE
REQUIRED IN ORDER FOR THE COMPANY TO DETERMINE THAT THE PROPOSED TRANSFER IS
BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
NO AFFILIATE (AS DEFINED IN RULE 144 UNDER THE SECURITIES ACT) OF WORKHORSE
GROUP INC. OR PERSON THAT HAS BEEN AN AFFILIATE (AS DEFINED IN RULE 144 UNDER
THE SECURITIES ACT) OF WORKHORSE GROUP INC. DURING THE PRECEDING THREE MONTHS
MAY PURCHASE, OTHERWISE ACQUIRE OR HOLD THIS SECURITY OR A BENEFICIAL INTEREST
HEREIN.1

1 The Restrictive Legend shall be deemed removed from the face of this Note
without further action by the Company, Trustee or the Holders of this Note at
such time and in the manner provided under Section 2.05 of the Indenture.

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WORKHORSE GROUP INC.
4.00% Senior Secured Convertible Notes due 2024
No. R-1        Initially $200,000,000
CUSIP No. 98138JAA5

Workhorse Group Inc., a Nevada corporation, for value received, promises to pay
to Cede & Co., or its registered assigns, the principal sum as set forth in the
“Schedule of Exchanges of Notes” attached hereto on October 15, 2024, and to pay
interest thereon, as provided in this Note, until the principal and all accrued
and unpaid interest are paid or duly provided for.

Interest Payment Dates:
January 15, April 15, July 15 and October 15 of each year, commencing on January
15, 2021.
Regular Record Dates:January 1, April 1, July 1 and October 1.

Additional provisions of the Notes are set forth on the other side of the Notes.
[The Remainder of This Page Intentionally Left Blank; Signature Page Follows]

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IN WITNESS WHEREOF, Workhorse Group Inc. has caused this instrument to be duly
executed as of the date set forth below.
WORKHORSE GROUP INC.
Date:    By:    ___________________________________
                        Name:
                        Title:

[Signature Page to Global Note]

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TRUSTEE’S CERTIFICATE OF AUTHENTICATION
U.S. Bank National Association, as Trustee, certifies that this is one of the
Notes referred to in the within-mentioned Indenture.

Date:    By:    ____________________________________
        Authorized Signatory

[Signature Page to Global Note]

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WORKHORSE GROUP INC.
Senior Secured Convertible Notes due 2024
The Notes are one of a duly authorized issue of notes of Workhorse Group Inc., a
Nevada corporation (the “Company”), designated as its Convertible Notes due 2024
(the “Notes”), all issued or to be issued pursuant to an indenture, dated as of
October 14, 2020 (as the same may be amended from time to time, the
“Indenture”), among the Company, the Guarantors and U.S. Bank National
Association, as trustee and collateral agent. Capitalized terms used in the
Notes without definition have the respective meanings ascribed to them in the
Indenture.
The Indenture sets forth the rights and obligations of the Company, the
Guarantors, the Trustee, the Collateral Agent and the Holders and the terms of
the Notes. Notwithstanding anything to the contrary in the Notes, to the extent
that any provision of the Notes conflicts with the provisions of the Indenture,
the provisions of the Indenture will control.
1.Interest. The Notes will accrue interest at a rate of 4.00% per annum (the
“Stated Interest”). Stated Interest on this Note will (i) accrue on the
principal amount of this Note; (ii) accrue from, and including, the most recent
date to which Stated Interest has been paid or duly provided for (or, if no
Stated Interest has theretofore been paid or duly provided for, the Issue Date)
to, but excluding, the date of payment of such Stated Interest; (iii) be payable
quarterly in arrears on each Interest Payment Date; and (iv) be computed on the
basis of a 360-day year comprised of twelve 30-day months.

2.Maturity. The Notes will mature on October 15, 2024, unless earlier
repurchased, redeemed or converted.

3.Guarantees. The Company’s obligations under the Indenture and the Notes are
fully and unconditionally guaranteed by the Guarantors as provided in Article 9
of the Indenture.

4.Method of Payment. The Company will pay, or cause the Paying Agent to pay, the
principal (whether due upon maturity on the Maturity Date, Redemption on a
Redemption Date or repurchase on a Fundamental Change Repurchase Date or
otherwise) of, interest on, and any cash Conversion Consideration for, any
Global Note to the Depositary by wire transfer of immediately available funds no
later than the time the same is due as provided in this Indenture.

5.Persons Deemed Owners. The Holder of the Notes will be treated as the owner of
the Notes for all purposes.

6.Denominations; Transfers and Exchanges. All Notes will be in registered form,
without coupons, in principal amounts equal to any Authorized Denominations.
Subject to the terms of the Indenture, the Holder of the Notes may transfer or
exchange the Notes by presenting it to the Note Registrar and delivering any
required documentation or other materials.

7.Right of Holders to Require the Company to Repurchase. Each Holder will have
the right to require the Company to repurchase such Holder’s Notes (or any
portion thereof in an Authorized Denomination) for cash in the manner, and
subject to the terms, set forth in Section 4.02 of the Indenture.

4

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8.Right of the Company to Redeem the Notes. The Company will have the right to
redeem the Notes for cash in the manner, and subject to the terms, set forth in
Section 4.04 of the Indenture.

9.Conversion. The Holder of the Notes may convert the Notes into Conversion
Consideration in the manner, and subject to the terms, set forth in Article 5 of
the Indenture.

10.When the Company May Merge, Etc. Article 6 of the Indenture places limited
restrictions on the Company’s ability to be a party to a Business Combination
Event.

11.Security. The Notes will be secured in the manner, and subject to the terms,
set forth in the Indenture and the Collateral Agreements.

12.Defaults and Remedies. If an Event of Default occurs, then the principal
amount of, and all accrued and unpaid interest on, all of the Notes then
outstanding may (and, in certain circumstances, will automatically) become due
and payable in the manner, and subject to the terms, set forth in Article 7 of
the Indenture.

13.Amendments, Supplements and Waivers. The Company, the Guarantors, the Trustee
and the Collateral Agent may amend or supplement the Indenture or the Notes or
waive compliance with any provision of the Indenture or the Notes in the manner,
and subject to the terms, set forth in Article 8 of the Indenture.

14.No Personal Liability of Directors, Officers, Employees and Stockholders. No
past, present or future director, officer, employee, incorporator or stockholder
of the Company or any Guarantor, as such, will have any liability for any
obligations of the Company or any Guarantor under the Indenture, the Notes or
the Guarantees or for any claim based on, in respect of, or by reason of, such
obligations or their creation. By accepting any Note, each Holder waives and
releases all such liability. Such waiver and release are part of the
consideration for the issuance of the Notes.

15.Authentication. No Note will be valid until it is authenticated by the
Trustee. A Note will be deemed to be duly authenticated only when an authorized
signatory of the Trustee (or a duly appointed authenticating agent) manually
signs the certificate of authentication of such Note.

16.Abbreviations. Customary abbreviations may be used in the name of a Holder or
its assignee, such as TEN COM (tenants in common), TEN ENT (tenants by the
entireties), JT TEN (joint tenants with right of survivorship and not as tenants
in common), CUST (custodian), and U/G/M/A (Uniform Gift to Minors Act).

17.Governing Law. THE NOTES, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER
OR RELATED TO THE NOTES, WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.
To request a copy of the Indenture, which the Company will provide to any Holder
at no charge, please send a written request to the following address:
Workhorse Group Inc.
100 Commerce Drive
5

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Loveland, Ohio 45140
Attention: Chief Financial Officer

6

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[FORM OF NOTICE OF CONVERSION]
WORKHORSE GROUP INC.
Senior Secured Convertible Notes due 2024
Subject to the terms of the Indenture, by executing and delivering this
Conversion Notice, the undersigned Holder of the Note identified below directs
the Company to convert (check one):
☐    the entire principal amount of
☐    $ *2aggregate principal amount of
the Note identified by CUSIP No. and Certificate No.
The undersigned acknowledges that if the Conversion Date of a Note to be
converted is after a Regular Record Date and before the next Interest Payment
Date, then such Note, when surrendered for conversion, must, in certain
circumstances, be accompanied with an amount of cash equal to the interest that
would have accrued on such Note to, but excluding, such Interest Payment Date.
The undersigned registered owner of this Note hereby exercises the option to
convert this Note, or the portion hereof (that is $1,000 principal amount or an
integral multiple in excess thereof) below designated, into cash, shares of
Common Stock or a combination of cash and shares of Common Stock, as applicable,
in accordance with the terms of the Indenture referred to in this Note, and
directs that any cash payable and any shares of Common Stock issuable and
deliverable upon such conversion, together with any cash for any fractional
share, and any Notes representing any unconverted principal amount hereof, be
issued and delivered to the registered Holder hereof unless a different name has
been indicated below. If any shares of Common Stock or any portion of this Note
not converted are to be issued in the name of a Person other than the
undersigned, the undersigned will pay all documentary, stamp or similar issue or
transfer taxes, if any. Any amount required to be paid to the undersigned on
account of interest accompanies this Note. Capitalized terms used herein but not
defined shall have the meanings ascribed to such terms in the Indenture.

Date:__________________________________________(Legal Name of
Holder)By:    ____________________________________Name:Title:Signature
Guaranteed:__________________________________________Participant in a Recognized
Signature
Guarantee Medallion
ProgramBy:    _____________________________________Authorized Signatory

2*     Must be an Authorized Denomination.
7

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FUNDAMENTAL CHANGE REPURCHASE NOTICE

WORKHORSE GROUP INC.

Senior Secured Convertible Notes due 2024

Subject to the terms of the Indenture, by executing and delivering this
Fundamental Change Repurchase Notice, the undersigned Holder of the Note
identified below is exercising its Fundamental Change Repurchase Right with
respect to (check one):
☐    the entire principal amount of
☐    $3* aggregate principal amount of
the Note identified by CUSIP No. and Certificate No. .
The undersigned acknowledges that the Notes, duly endorsed for transfer, must be
delivered to the Paying Agent before the Fundamental Change Repurchase Price
will be paid.

Date:__________________________________________(Legal Name of Holder)By:
    ____________________________________Name:Title:Signature
Guaranteed:__________________________________________Participant in a Recognized
Signature
Guarantee Medallion
ProgramBy:    _____________________________________Authorized Signatory

*     Must be an Authorized Denomination.
8

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ASSIGNMENT FORM
WORKHORSE GROUP INC.
Senior Secured Convertible Notes due 2024
Subject to the terms of the Indenture, the undersigned Holder of the within Note
assigns to:

Name:_______________________________________Address:_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
Social security or tax
identification number:______________________________________

the within Note and all rights thereunder irrevocably appoints:
as agent to transfer the within Note on the books of the Company. The agent may
substitute another to act for him/her.

Date:__________________________________________(Legal Name of Holder)By:
    ____________________________________Name:Title:Signature
Guaranteed:__________________________________________Participant in a Recognized
Signature
Guarantee Medallion
ProgramBy:    _____________________________________Authorized Signatory

9

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TRANSFEROR ACKNOWLEDGEMENT
If the within Note bears a Restricted Note Legend, the undersigned further
certifies that (check one):
☐    Such Transfer is being made to the Company or a Subsidiary of the Company.
☐    Such Transfer is being made pursuant to, and in accordance with, a
registration statement that is effective under the Securities Act at the time of
the Transfer.
☐    Such Transfer is being made pursuant to, and in accordance with, Rule 144A
under the Securities Act, and, accordingly, the undersigned further certifies
that the within Note is being transferred to a Person that the undersigned
reasonably believes is purchasing the within Note for its own account, or for
one or more accounts with respect to which such Person exercises sole investment
discretion, and such Person and each such account is a “qualified institutional
buyer” within the meaning of Rule 144A under the Securities Act in a transaction
meeting the requirements of Rule 144A. If this item is checked, then the
transferee must complete and execute the acknowledgment contained on the next
page.
☐    Such Transfer is being made pursuant to, and in accordance with, any other
available exemption from the registration requirements of the Securities Act
(including, if available, the exemption provided by Rule 144 under the
Securities Act).

Dated:_________________________________________(Legal Name of Holder)By:
______________________________________Name:Title:Signature
Guaranteed:_________________________________________(Participant in a Recognized
Signature
Guarantee Medallion Program)By: ______________________________________Authorized
Signatory

10

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TRANSFEREE ACKNOWLEDGEMENT
The undersigned represents that it is purchasing the within Note for its own
account, or for one or more accounts with respect to which the undersigned
exercises sole investment discretion, and that and the undersigned and each such
account is a “qualified institutional buyer” within the meaning of Rule 144A
under the Securities Act. The undersigned acknowledges that the transferor is
relying, in transferring the within Note on the exemption from the registration
and prospectus-delivery requirements of the Securities Act of 1933, as amended,
provided by Rule 144A and that the undersigned has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A.

Dated:_________________________________________(Legal Name of Holder)By:
______________________________________Name:Title:

11

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SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*4
INITIAL PRINCIPAL AMOUNT OF THIS GLOBAL NOTE: $[ ]
The following exchanges, transfers or cancellations of this Global Note have
been made:

DateAmount of Increase
(Decrease) in
Principal Amount of
this Global NotePrincipal Amount of
this Global Note
After Such Increase
(Decrease)Signature of
Authorized
Signatory of Trustee

*     Insert for Global Notes only.
12