Document:

Exhibit
10.1

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL
OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

CONVERSION
AGREEMENT

 

THIS
CONVERSION AGREEMENT (the "Agreement"), dated as of January 27, 2017 is made by and between Workhorse Group Inc., a
Nevada corporation (the “Company”), and Joseph T. Lukens (the “Holder”).

 

WHEREAS,
Holder holds a 6% Convertible Debenture (the "Debenture") payable by the Company in the amount of $2,005,000 including
interest (the “Debt”) dated January 10, 2017.

 

WHEREAS,
in accordance with the Debenture, the Holder and the Company have agree that upon the closing
of any future equity, convertible equity or convertible debt financing of the Company of at least $5,000,000 (a “Financing”)
all unpaid principal and accrued but unpaid interest hereunder shall automatically convert into the same securities offered in
the Financing.

 

WHEREAS,
the Company is implementing a public offering pursuant to which it is selling 6,500,000 shares of common stock at price of $3.00
per share of common stock (the “Per Share Offering Price”).

 

WHEREAS, the Company and Holder wish to convert
the Debenture into such number of shares of common stock of the Company equal to the Debt divided by the Per Share Offering Price
resulting in the issuance of 668,333 shares of common stock of the Company (the “Shares”) to Holder.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge the parties
agree as follows:

 

1. Conversion.
It is agreed by the Company and Holder that on the closing date of the Financing, the Debt shall convert into the Shares at the
Per Share Offering Price.

 

2.Certificate
Delivery. Within ten (10) business days of the date hereof, the Company shall deliver a certificate representing the Shares
to Holder.

 

3. Further
Assurances. The parties, by entering into this Agreement, agree to execute all agreements and other documents as reasonably
requested by the other party.

 

4. Representations
and Warranties and Covenants of Holder. Holder represents, warrants and covenants to the Company as follows:

 

a.
No Registration. Holder understands that the Shares have not been, and will not be, registered under the Securities Act
of 1933, as amended (the “Securities Act”) by reason of a specific exemption from the registration provisions of the
Securities Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and
the accuracy of Holder’s representations as expressed herein or otherwise made pursuant hereto.

 

     

     

    

 

b.
Investment Experience. Holder has substantial experience in evaluating and investing in private placement transactions
of securities in companies similar to the Company and acknowledges that he can protect his own interests. Holder has such knowledge
and experience in financial and business matters so that Holder is capable of evaluating the merits and risks of its investment
in the Company.

 

d.
Speculative Nature of Investment; SEC Reports; Dilution. Holder understands and acknowledges that the Company has a limited
financial and operating history and that an investment in the Company is highly speculative and involves substantial risks. Holder
can bear the economic risk of such investment and is able, without impairing such financial condition, to hold the Shares for
an indefinite period of time and to suffer a complete loss of Holder’s investment. Holder further understands that the Company
will need issue additional shares of common stock in connection with future financings and in connection with the retention or
hiring of management and employees, which will dilute Holder.

 

e.
Accredited Investor. Holder is an “accredited investor’ within the meaning of Regulation D, Rule 501(a), promulgated
by the Securities and Exchange Commission under the Securities Act and shall submit to the Company such further assurances of
such status as may be reasonably requested by the Company.

 

f.
Rule 144. Holder acknowledges that the Shares must be held indefinitely unless subsequently registered under the Securities
Act or an exemption from such registration is available. The Holder is aware of the provisions of Rule 144 promulgated under the
Securities Act which permit limited resale of shares subject to the satisfaction of certain conditions, including among other
things, the existence of a public market for the shares, the availability of certain current public information about the Company
and the resale occurring not less than six months after a party has purchased and paid for the security to be sold. The Holder
acknowledges that, in the event all of the requirements of Rule 144 are not met, registration under the Securities Act or an exemption
from registration will be required for any disposition of the Shares. The Holder understands that, although Rule 144 is not exclusive,
the Securities and Exchange Commission has expressed its opinion that persons proposing to sell restricted securities received
in a private offering other than in a registered offering or pursuant to Rule 144 will have a substantial burden of proof in establishing
that an exemption from registration is available for such offers or sales and that such persons and the brokers who participate
in the transactions do so at their own risk.

 

g.
Authorization.

 

i.
The Holder has all requisite power and authority to execute and deliver this Conversion Agreement, and to carry out and perform
its obligations under the terms hereof. All action on the part of the Holder necessary for the authorization, execution, delivery
and performance of this Conversion Agreement, and the performance of all of the Holder’s obligations herein, has been taken.

 

ii.
This Conversion Agreement, when executed and delivered by the Holder, will constitute valid and legally binding obligations of
the Holder, enforceable in accordance with its terms except: (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited
by laws relating to the availability of specific performance, injunctive relief or other equitable remedies or by general principles
of equity.

 

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iii.
No consent, approval, authorization, order, filing, registration or qualification of or with any court, governmental authority
or third person is required to be obtained by the Holder in connection with the execution and delivery of this Conversion Agreement
by the Holder or the performance of the Holder’s obligations hereunder.

 

h.
Brokers or Finders. Such Holder has not engaged any brokers, finders or agents, and the Company has not, and will not,
incur, directly or indirectly, as a result of any action taken by the Holder, any liability for brokerage or finders’ fees
or agents’ commissions or any similar charges in connection with this Conversion Agreement and the transactions related
hereto.

 

i.
Tax Advisors. The Holder has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences
of this investment and the transactions contemplated by this Conversion Agreement. With respect to such matters, the Holder relies
solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. The
Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of
this investment or the transactions contemplated by this Conversion Agreement.

 

j.
Legends.  The Holder understands and agrees that the certificates evidencing the Shares shall bear a legend in substantially
the form as follows (in addition to any legend required by any other applicable agreement or under applicable state securities
laws):

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH
ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY
SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

5. Miscellaneous.

 

a.
Notice. Any notice required under this Agreement shall be deemed duly delivered (and shall be deemed to have been duly
received if so given), if personally delivered, sent by a reputable courier service, or mailed by registered or certified mail,
postage prepaid, return receipt requested, addressed to the parties at the addresses set forth above or to such other address
as any party may have furnished to the other in writing in accordance with this Section.

 

b.
Law and Jurisdiction. The laws of the State of Ohio apply to this Agreement, without deference to the principles of conflicts
of law. Both jurisdiction and venue for any litigation pursuant to this Agreement shall be proper in the courts of Ohio.

 

c.
Severability. If the law does not allow a provision of this Agreement to be enforced, such unenforceable provision shall
be amended to become enforceable and reflect the intent of the parties, and the rest of the provisions of this Agreement shall
remain in effect.

 

d.
Waiver. The failure of any party, in any instance, to insist upon strict enforcement of the provisions of this Agreement shall
not be construed to be a waiver or relinquishment of enforcement in the future, and the terms of this Agreement shall continue
to remain in full force and effect.

 

e.
Assignability. This Agreement shall not be assignable by either party.

 

f.
Amendment. This Agreement may only be amended or modified in a writing signed by both of the parties and referring to this
Agreement.

 

g.
Entire Agreement. This Agreement constitutes the entire agreement and final understanding of the parties with respect to
the subject matter of this Agreement and supersedes and terminates all prior and/or contemporaneous understandings and/or discussions
between the parties, whether written or verbal, express or implied, relating in any way to the subject matter of this Agreement.

 

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IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their respective officers thereonto duly authorized
as of the day and year first above written.

 

	 	WORKHORSE GROUP INC.
	 	 	 
	 	By: 	/s/ Julio Rodriguez
	 	 	Name: Julio Rodriguez
	 	 	Title: Chief Financial Officer
	 	 	 
	 	/s/ Joseph T. Lukens
	 	Joseph T. Lukens

 

 

4EXHIBIT 10.1

 

 

 

MASSROOTS, INC.

LOCK-UP AGREEMENT

 

THIS LOCK-UP AGREEMENT
(the “Agreement”) is made as of [ ] by and between MassRoots Inc., a Delaware corporation, (the “Company”),
and the undersigned holder of common stock (the “Shareholder”) of the Company.

 

WHEREAS, pursuant to
an Agreement and Plan of Merger between the Company, DDDigtal Inc, Whaxy Inc., Zachary Marburger and the shareholders of DDDigtal
Inc, dated [ ], DDDigtal Inc became a wholly-owned subsidiary of the Company (the “Merger Agreement”, and the
consummation of the transactions contemplated thereby, the “Merger”), and in exchange for the Shareholder’s
shares of common stock of DDDigtal Inc, the Shareholder acquired that number of shares the Company’s common stock, par value
$0.001 per share (“Common Stock”), set forth on the signature page hereto (such shares, the “Acquired
Shares”); and

 

WHEREAS, a condition
of the Merger Agreement, every shareholder of DDDigtal Inc was required to enter into this Agreement to lock-up all of each such
shareholder’s Acquired Shares for a period of six (6) months following the date the Merger becomes effective (the “Effective
Date”),.

 

NOW, THEREFORE, in consideration
of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the Company and the undersigned Shareholder agree as follows: 

 

1.       Six
Month Prohibition on Sales or Transfers. The Shareholder hereby agrees that for a period of six (6) months from the Effective
Date (the “Lock-Up Period”), the Shareholder will not (a) offer, sell, contract to sell, pledge, give,
donate, transfer or otherwise dispose of, directly or indirectly, any Acquired Shares, (b) enter into a transaction which would
have the same effect, or (c) enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic
or voting consequences of ownership of such securities, whether any such aforementioned transaction is to be settled by delivery
of the Acquired Shares or such other securities, in cash or otherwise, or publicly disclose the intention to make any such offer,
sale, pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement.

 

2.       Reference
to Shareholder. Any reference in this Agreement to the Shareholder shall include any legal entity, including any corporation,
limited liability company, partnership, not-for-profit corporation, estate planning vehicle or trust, which is directly or indirectly
owned or controlled by, under common control with, or in control of the Shareholder, including any such entity where such Shareholder
is deemed to be a beneficial owner.

 

3.       Attempted
or Requested Transfers. Any attempted or purported sale or other transfer of any Acquired Shares by the Shareholder in violation
or contravention of the terms of this Agreement shall be null and void ab initio. The Company shall be entitled to instruct its
transfer agent to reject and refuse to transfer on its books any Acquired Shares that may have been attempted to be sold or otherwise
transferred in violation or contravention of any of the provisions of this Agreement and shall not recognize any person or entity
who is the purported transferee of such shares. 

 

4.       Broker
Authorization. The Shareholder hereby authorizes any and all brokers, for all accounts holding the Shareholder’s Acquired
Shares, to provide directly to the Company, immediately upon the Company’s request, a copy of all account statements showing
the Acquired Shares and confirming no trading activity in the Acquired Shares during the Lock-Up Period.

 

5.       Waiver
of Claims. The Shareholder hereby irrevocably waives any and all known or unknown claims and rights, whether direct or indirect,
fixed or contingent, that the Shareholder may now have or that may hereafter arise against the Company or any of its affiliates,
or any of its respective officers, directors, stockholders, employees, agents, attorneys or advisors arising out of the negotiation
or documentation of this Agreement.

 

    	 	
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6.       Legends
on Certificates. All Acquired Shares shall be subject to the provisions of this Agreement, regardless of whether such Acquired
Shares bear a legend to this effect, and to the extent that any certificates representing Acquired Shares are issued during the
Lock-Up Period, such Acquired Shares may, as determined in the Company’s sole discretion, bear legends as follows (or in
substantially similar form):

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE
SECURITIES LAWS. THEY MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED FOR VALUE UNLESS THEY ARE REGISTERED UNDER THE
ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS THE CORPORATION RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO IT, OR OTHERWISE
SATISFIES ITSELF, THAT AN EXEMPTION FROM REGISTRATION IS AVAILABLE. 

 

THE SALE, ASSIGNMENT,
GIFT, BEQUEST, TRANSFER, DISTRIBUTION, PLEDGE, HYPOTHECATION OR OTHER ENCUMBRANCE OR DISPOSITION OF THE SHARES REPRESENTED BY
THIS CERTIFICATE IS RESTRICTED BY AND MAY BE MADE ONLY IN ACCORDANCE WITH THE TERMS OF A LOCK-UP AGREEMENT, A COPY OF WHICH MAY
BE EXAMINED AT THE OFFICE OF THE CORPORATION.

 

7.       Representations
and Warranties. The Shareholder hereby represents and warrants that:

 

(a)       It
has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder;

 

(b)       The
execution of this Agreement by the individual whose signature is set forth at the end of this Agreement on behalf of the Shareholder,
and the delivery of this Agreement by such person, has been duly authorized by all necessary actions on the part of the Shareholder;

 

(c)       This
Agreement has been executed and delivered by the Shareholder and constitutes the legal, valid and binding obligation of the Shareholder,
enforceable against the Shareholder in accordance with its terms; and

 

(d)       It
had the opportunity to be represented by legal counsel and other advisors selected by Shareholder in connection with this Agreement,
and that the Shareholder has reviewed this Agreement with his, her or its legal counsel and other advisors and understands the
terms and conditions hereof.

 

8.       Miscellaneous.

 

(a)       This
Agreement constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein, and supersedes
all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect
to such subject matter.

 

(b)       The
headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.

 

(c)       This
Agreement will be binding upon and inure to the benefit of the Company, its successors and assigns and to the Shareholder and
their respective permitted heirs, personal representatives, successors and assigns.

 

(d)       This
Agreement is governed by, and construed in accordance with, the laws of the State of Colorado, without regard to the conflict
of laws provisions of such State.

 

    	 	
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(e)       The
parties hereto acknowledge that money damages are not an adequate remedy for violations of this Agreement and that any Party may,
in such Party’s sole discretion, apply to any court of competent jurisdiction for specific performance or injunctive relief
or such other relief as such court may deem just and proper in order to enforce this Agreement or prevent any violation hereof
and, to the extent permitted by applicable law, each Party hereto waives any objection to the imposition of such relief. All rights,
powers and remedies provided under this Agreement or otherwise available in respect hereof, whether at law or in equity, shall
be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by any Party hereto shall not
preclude the simultaneous or later exercise of any other such right, power or remedy by such Party.

 

(f)       All
notices, requests, demands, claims and other communications hereunder shall be in writing and shall be delivered by certified
or registered mail (first class postage pre-paid), guaranteed overnight delivery, or email transmission if such transmission is
confirmed, by certified or registered mail (first class postage pre-paid) or guaranteed overnight delivery, to the addresses set
forth on the signature page hereto (or to such other addresses which such Party shall subsequently designate in writing to the
other Party).

 

(g)       This
Agreement may be executed in any number of counterparts and by electronic transmission, each of which when so executed and delivered
shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument.

 

[SIGNATURE PAGE FOLLOWS]

    	 	
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IN WITNESS WHEREOF, the undersigned Parties have
caused this Agreement to be duly executed by their respective authorized signatories as of the date first set forth above.

 

 

THE COMPANY:

 

MASSROOTS, INC.

 

By:      _______________________________

Isaac Dietrich

Chief Executive Officer

 

Address:      ____________________________

 

 

Email:_________________________________

 

SHAREHOLDER:

_______________________________________

(entity name, if applicable)

 

By:      ___________________________________

Name:     __________________________________

Title:      ___________________________________

 

Acquired Shares: ___________________________

 

Address:       _______________________________

 

 

 

Email:      ___________________________________

 

    	 	
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