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Exhibit 10.26

INDEPENDENT CONTRACTOR AGREEMENT

This Independent Contractor Agreement (“Agreement”) is made by and between WORKHORSE GROUP, INC., a Nevada corporation (the “Company”) and DUANE HUGHES (the “Contractor”) (collectively, the “Parties”) as of the Effective Date (defined herein).  
WHEREAS, the Company wishes to engage the Contractor as an independent contractor, and the Contractor wishes to provide services to the Company as an independent contractor.
NOW THEREFORE, in consideration of the mutual promises and other good and valuable consideration set forth herein, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 
1.Term.  The term of this Agreement shall begin on August 2, 2021 and shall end on September 30, 2021, unless prior terminated pursuant to Section 9 herein (“Term”).  Upon the conclusion of the Term, this Agreement shall automatically terminate unless the Parties mutually agree to extend the Term and such agreement is reduced to a signed writing by and between the Parties.
2.Services.  The Company hereby engages Contractor, and Contractor hereby accepts such engagement, as an independent contractor to provide certain services to the Company on the terms and conditions set forth in this Agreement including, but not limited to, cooperating in connection with any claims arising out of the Contractor’s past employment with the Company and his performance of services under this Agreement.  Contractor shall perform services for the Company as are within the Contractor’s area of knowledge, skill, and expertise as directed, from time to time, by the Board and Officers of the Company (“Services”).  Contractor shall personally perform the Services and shall not subcontract or assign the obligation or right to perform Services to any other individual or entity without prior written consent of the Company.  The Contractor, and not the Company, shall control the manner or means by which Contractor performs the Services, including but not limited to the time and place Contractor performs the Services, provided, however, that the Company reserves the right to establish deadlines and minimum standards for the performance of each and every assignment.  The Company and Contractor anticipate that the time devoted to services hereunder will be less than 20% of the time that Contractor devoted to services as an employee during the 36-month period prior to the end of Contractor’s employment with the Company. The Company shall provide Contractor with access to its premises, materials, information, and systems to the extent necessary for the performance of the Services.  Unless otherwise provided by the Company, Contractor shall furnish, at Contractor’s own expense, the materials, equipment, and other resources necessary to perform the Services.  Contractor shall comply with all rules and procedures communicated to Contractor by the Company.
3.Compensation for Services.  As full compensation for the Services and the rights granted to the Company in this Agreement, the Company shall:
a)Monthly Fee.  Pay Contractor a fixed fee of fifteen thousand dollars ($15,000) each calendar month of the Term (“Monthly Fee”), payable on or before the 15th day of the month immediately following the month for which the Monthly Fee is attributed.  Contractor acknowledges that Contractor will receive an IRS Form 1099-NEC from the Company, and that Contractor shall be solely responsible for all federal, state, and local taxes.
b)Equity Awards.  By mutual agreement of the Parties, as of the Effective Date, the Restricted Stock Agreement between the Company and the Contractor dated as February 25, 2021 is being amended on the terms and conditions set forth in an Amendment to Restricted Stock Agreement entered into between the Company and the Contractor as of the date 

Exhibit 10.26

of this Agreement (the “Amended Equity Awards”). In addition, the Company and the Contractor will enter into an amendment to certain Stock Option Agreements between the Company and the Contractor to extend until January 31, 2022 the period in which the Contractor may exercise such Stock Option Agreements as to shares that are vested as of the Effective Date.
4.Independent Contractor Relationship.  Contractor is an independent contractor of the Company, and this Agreement shall not be construed to create any association, partnership, joint venture, employment, or agency relationship between Contractor and the Company for any purpose.  Contractor has no authority (and shall not hold himself out as having authority) to bind the Company and Contractor shall not make any agreements or representations on the Company’s behalf without the Company's prior written consent.  Contractor will not be eligible to participate in any vacation, group medical or life insurance, disability, profit sharing or retirement benefits, or any other fringe benefits or benefit plans offered by the Company to its employees (other than plans which, by their terms, allow continuation or conversion of benefits to former employees generally, in which case Contractor’s rights shall be in accordance with those terms), and the Company will not be responsible for withholding or paying any income, payroll, Social Security, or other federal, state, or local taxes on the Monthly Fee hereunder, making any insurance contributions, including for unemployment or disability, or obtaining workers’ compensation insurance on Contractor’s behalf.  
5.Intellectual Property Assignment.  The Company is and will be the sole and exclusive owner of all right, title, and interest throughout the world in and to all the results and proceeds of the Services performed under this Agreement (collectively, the “Deliverables”) and all other writings, technology, inventions, discoveries, processes, techniques, methods, ideas, concepts, research, proposals, and materials, and all other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, modified, conceived, or reduced to practice in the course of performing the Services or other work performed in connection with the Services or this Agreement (collectively, and including the Deliverables, “Work Product”) including all patents, copyrights, trademarks (together with the goodwill symbolized thereby), trade secrets, know-how, and other confidential or proprietary information, and other intellectual property rights (collectively “Intellectual Property Rights”) therein. Contractor agrees that the Work Product is hereby deemed “work made for hire” as defined in 17 U.S.C. § 101 for the Company and all copyrights therein automatically and immediately vest in the Company. If, for any reason, any Work Product does not constitute “work made for hire,” Contractor hereby irrevocably assigns to the Company, for no additional consideration, Contractor’s entire right, title, and interest throughout the world in and to such Work Product, including all Intellectual Property Rights therein, including the right to sue for past, present, and future infringement, misappropriation, or dilution thereof.  To the extent any copyrights are assigned under this Section 5, Contractor hereby irrevocably waives in favor of the Company, to the extent permitted by applicable law, any and all claims Contractor may now or hereafter have in any jurisdiction to all rights of paternity or attribution, integrity, disclosure, and withdrawal and any other rights that may be known as “moral rights” in relation to all Work Product to which the assigned copyrights apply.  Upon the request of the Company, during and after the Term, Contractor shall promptly take such further actions, including execution and delivery of all appropriate instruments of conveyance, and provide such further cooperation, as may be necessary to assist the Company to apply for, prosecute, register, maintain, perfect, record, or enforce its rights in any Work Product and all Intellectual Property Rights therein.  In the event the Company is unable, after reasonable effort, to obtain Contractor’s signature on any such documents, Contractor hereby irrevocably designates and appoints the Company as Contractor’s agent and attorney-in-fact, to act for and on Contractor’s behalf solely to execute and file any such application or other document and do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights, or other intellectual property protection related to the Work Product with the same legal force and effect as if Contractor had executed them. Contractor agrees that this power of attorney is coupled with an interest.  As between the 

Exhibit 10.26

Contractor and the Company, the Company is, and will remain, the sole and exclusive owner of all right, title, and interest in and to any documents, specifications, data, know-how, methodologies, software, and other materials provided to the Contractor by the Company (“Company Materials”), including all Intellectual Property Rights therein.  Contractor has no right or license to reproduce or use any Company Materials except solely during the Term to the extent necessary to perform Contractor’s obligations under this Agreement.  All other rights in and to the Company Materials are expressly reserved by the Company.  The Contractor has no right or license to use the Company’s trademarks, service marks, trade names, logos, symbols, or brand names.  Contractor shall require each of Contractor’s and employees and subcontractors, if any, to execute written agreements containing obligations of confidentiality and non-use and assignment of inventions and other work product consistent with the provisions of this Section 5 prior to such employee or subcontractor providing any Services under this Agreement.
6.Non-Compete Agreement.  The Parties agree that this Agreement is subject to and contingent upon Contractor’s simultaneous execution of the Non-Compete Agreement attached hereto as Exhibit A (“Non-Compete Agreement”). 
7.Employment Separation Agreement and Release of Claims.  The Parties agree that this Agreement is subject to and contingent upon and results from Contractor’s and the Company’s simultaneous execution and non-revocation of the Employment Separation Agreement and Release of Claims by and between the Parties (“Employment Separation Agreement and Release of Claims”).
8.Contractor Representations and Warranties.  Contractor represents and warrants to the Company that:
a)Contractor has the right to enter into this Agreement, to grant the rights granted herein, and to perform fully all of Contractor’s obligations in this Agreement;
b)Contractor’s entering into this Agreement with the Company and Contractor’s performance of the Services do not and will not conflict with or result in any breach or default under any other agreement to which Contractor is subject;
c)Contractor shall perform the Services in compliance with all applicable federal, state, and local laws and regulations, including by maintaining all licenses, permits, and registrations required to perform the Services (if any are required);
d)The Company will receive good and valid title to all Work Product, free and clear of all encumbrances and liens of any kind; and
e)All Work Product is and shall be Contractor’s original work (except for material in the public domain or provided by the Company) and does not and will not violate or infringe upon the intellectual property right or any other right whatsoever of any person, firm, corporation, or other entity. 
9.Termination.  
a)Termination with Notice.  After August 25, 2021, the Contractor or the Company may terminate this Agreement without cause upon 14 calendar days’ written notice to the other Party to this Agreement.  In the event of termination pursuant to this clause, the Company shall pay Contractor on a pro-rata basis any Monthly Fees then due and payable for any period prior to and including the date of such termination.

Exhibit 10.26

b)Termination for Cause.  After August 25, 2021, the Contractor or the Company may terminate this Agreement, effective immediately upon written notice to the other Party to this Agreement, if the other Party materially breaches this Agreement or any other agreement by and between the Parties as then in effect.
c)Return of Property. The Contractor will promptly return at such time requested by the Company to the Company all Company property in a satisfactory condition, including but not limited to, all keys, credit or access cards, equipment, documents, copies of documents, draft and final reports, materials, studies, disks, computers, and all Company information stored in any electronic form.  In addition, the Contractor will return any materials or projects (whether complete or incomplete) that he is working on as an independent contractor of the Company.
10.Release.  As a condition to receiving the amounts and benefits in Section 3 hereof, the Contractor shall sign and deliver to the Company a release of claims (the “Release”) in substantially the form attached hereto as Exhibit B, within twenty-one (21) days after the expiration of the Term and not revoke the same within seven (7) days after the delivery of the Release to the Company.  The Company shall provide this Release to the Contractor both by overnight mail and email (duane.hughes@twc.com) at the time the Company would like Contractor to sign it.  If the Contractor does not sign and delivery the Release or if the Contractor revokes it, the Contractor shall not be entitled to receive the final Monthly Fee under Section 3(a), but this Agreement (including the waivers and releases contained herein and the other agreements incorporated herein) shall otherwise remain in full force and effect.
11.No Known Violations.  The Contractor agrees that he will, within twenty-one (21) days after the expiration of the Term, disclose to the Company any and all matters, information, or concerns of any type whatsoever of which the Contractor, in good faith, is currently aware regarding the Company’s actions, policies, practices, and/or procedures that the Contractor believes constitute a violation of any law, rule, or regulation to the best of his knowledge.  All such disclosures shall be delivered to the Company’s General Counsel.  Additionally, the Contractor represents that he has not been prevented, prohibited, or in any manner restricted by the Company from making a full disclosure of any and all of his concerns regarding such matters to the Company.  
12.Survival.  The terms and conditions of Sections 4, 5, 6, 7, 9(c), and 10 herein shall survive the expiration or termination of this Agreement.
13.Other Business Activities.  Contractor may be engaged or employed in any other business, trade, profession, or other activity which does not place Contractor in a conflict of interest with the Company; provided, that, during the Term and for the period thereafter during which Contractor is subject to a restrictive covenant, the Contractor shall not be engaged in any business activities that violates his restrictive covenants.
14.Binding Effect. This Agreement shall bind the Company, the Company’s successors and assigns, the Contractor and the Contractor’s heirs, executors, administrators, personal representatives, attorneys, dependents, successors, and assigns. Neither this Agreement, nor any right or interest or obligation hereunder shall be assignable by the Contractor, the Contractor’s beneficiaries, or legal representatives without the prior consent of the Company.  
15.Entire Agreement. This Agreement, together with the Employment Separation Agreement and Release of Claims, the Amended Equity Awards, and the Non-Compete Agreement, which are expressly incorporated herein, sets forth the entire agreement between the Parties and supersedes any and all prior agreements or understandings, oral or written, between 

Exhibit 10.26

the Parties. The terms of this Agreement may not be modified other than in a writing signed by both Parties.
16.Choice of Law & Forum. This Agreement shall in all respects be interpreted, enforced and governed under the laws of the State of Ohio without regard to conflict of laws principles that would require the application of any other law.  Any dispute between Contractor and the Company and/or any of the Releasees will be brought solely (i) in the federal district court located in Cincinnati, Ohio or (ii) if its subject matter jurisdiction requirements are not met, in the state courts located in or for Hamilton County, Ohio.    
17.Severability. Should any provision of this Agreement, or the application thereof, be held invalid or unenforceable by a court of competent jurisdiction, the invalid or unenforceable provision, to the extent possible, will be revised to adhere to the intentions of the Parties as valid or enforceable under the law, and the remainder of this Agreement shall not be affected and shall continue to be valid and enforceable to the fullest extent permitted by law or equity unless the invalid or unenforceable provisions result in a failure of consideration. 
18.Captions. Captions and headings of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.
19.Counterparts; Electronic Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute one and the same final Agreement. Signatures to this Agreement may be delivered by means of electronic transmission, and all such signatures so delivered shall be deemed to be original signatures for all purposes hereunder.
IN WITNESS WHEREOF, the Parties have executed this INDEPENDENT CONTRACTOR AGREEMENT as of the date of Contractor’s signature below.

						
	INDEPENDENT CONTRACTOR:
Duane Hughes
By:    /s/ Duane Hughes    
Name: Duane Hughes

Date:    August 1, 2021
	COMPANY:
Workhorse Group, Inc.
By:    /s/ Raymond Chess                                    
Name: Raymond Chess                             
Title: Chairman of the Board of Directors
Date:        August 1, 2021

Exhibit 10.26

EXHIBIT A

Exhibit 10.26

Non-Compete Agreement

This Non-Compete Agreement (“Non-Compete Agreement”) is entered into by and between Workhorse Group Inc., a Nevada corporation (the “Company’), and Duane Hughes (the “Contractor”), (the Company and the Contractor are collectively referred to as the “Parties”), as of the date of Contractor’s signature below (the “Effective Date”).
In consideration of the Contractor’s engagement by the Company as an independent contractor, for the execution of the Independent Contractor Agreement, and amendment of restricted stock awards in connection therewith, all of which the Contractor acknowledges to be good and valuable consideration for the Contractor’s obligations hereunder, the Company and the Contractor hereby agree as follows:
1.Confidential Information. The Contractor understands and acknowledges that prior to and during the course of engagement with the Company, the Contractor has had or will have access to and has learned or will learn about Confidential Information, as defined below, which Confidential Information Contractor agrees he shall not use or disclose without prior written authorization of the Company.
a.Confidential Information Defined. For purposes of this Non-Compete Agreement, “Confidential Information” includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic, or any other form or medium, relating directly or indirectly to: Work Product, Company Materials, and the Intellectual Property Rights therein (as defined in the Independent Contractor Agreement executed by the Contractor in favor of the Company), computer programming and software, Company products and services, systems, functionality, designs, hardware, parts, concepts, specifications, features, techniques, plans, marketing, sales, performance, cost, pricing, supplier and customer information, data, tables, schedules, contracts and other information concerning the Company or its businesses, any existing or prospective customer, supplier, investor, or other associated third party, or of any other person or entity that has entrusted information to the Company in confidence.
The Contractor understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified or treated as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used. 
The Contractor understands and agrees that Confidential Information includes information developed by the Contractor in the course of the Contractor’s employment by or independent contractor relationship with the Company as if the Company furnished the same Confidential Information to the Contractor in the first instance. Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to the Contractor, provided that the disclosure is through no direct or indirect fault of the Contractor or person(s) acting on the Contractor’s behalf.

Exhibit 10.26

b.Company Use and Creation of Confidential Information. The Contractor understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized knowledge into developing its resources, creating a customer base, generating customer and potential customer lists, training its Contractors, and improving its offerings. The Contractor understands and acknowledges that as a result of these efforts, Company has created, and continues to use and create, Confidential Information. This Confidential Information provides Company with a competitive advantage over others in the marketplace.
c.Disclosure and Use Restrictions. Nothing herein voids, alters, or modifies the Contractor’s obligations under the Independent Contractor Agreement by the Contractor in favor of the Company.
d.Notice of Immunity Under the Defend Trade Secrets Act of 2016 (“DTSA”). Notwithstanding any other provision of this Agreement:
i.The Contractor will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that: 
1.is made: (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or
2.is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.
ii.If the Contractor files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Contractor may disclose the Company’s trade secrets to the Contractor’s attorney and use the trade secret information in the court proceeding if the Contractor: 
1.files any document containing the trade secret under seal; and 
2.does not disclose the trade secret, except pursuant to court order.
e.Other Permitted Disclosures. Nothing in this Agreement shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. The Contractor shall promptly provide written notice of any such order to an authorized officer of the Company. 

Exhibit 10.26

Nothing in this Agreement prohibits or restricts the Contractor (or Contractor’s attorney) from initiating communications directly with, responding to an inquiry from, or providing testimony before the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other self-regulatory organization, or any other federal or state regulatory authority regarding this Agreement or its underlying facts or circumstances.
2.Restrictive Covenants.
a.Acknowledgment. The Contractor understands that the nature of Contractor’s engagement gives the Contractor access to and knowledge of Confidential Information and places the Contractor in a position of trust and confidence with the Company. The Contractor understands and acknowledges that the intellectual services the Contractor provides to the Company are unique, special, or extraordinary. 
The Contractor further understands and acknowledges that the Company’s ability to reserve these for the exclusive knowledge and use of the Company is of great competitive importance and commercial value to the Company, and that improper use or disclosure by the Contractor is likely to result in unfair or unlawful competitive activity.
b.Non-Competition. Because of Company’s legitimate business interest as described in this Agreement and the good and valuable consideration offered to the Contractor, the sufficiency of which is acknowledged, during the term of Contractor’s Term (as defined by the Independent Contractor Agreement) and for the 7 months, to run consecutively, beginning on the last day of the Contractor’s Term (as defined by the Independent Contractor Agreement) with the Company, (the “Restricted Period”), the Contractor agrees and covenants not to engage in Prohibited Activity worldwide (“Restricted Territory”).
For purposes of this non-compete clause, “Prohibited Activity” is activity in which the Contractor contributes the Contractor’s knowledge, directly or indirectly, in whole or in part, as an Contractor, Company, owner, operator, manager, advisor, consultant, contractor, agent, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity to an entity engaged in the same or similar business as the Company, including those engaged the business described in the Company’s 10-K for the year ended December 31, 2020 as conducted by the Company or any of its affiliates at any time within the Restricted Territory. Prohibited Activity also includes activity that may require or inevitably require disclosure of trade secrets, proprietary information, or Confidential Information.

Exhibit 10.26

Nothing herein shall prohibit Contractor from purchasing or owning less than five percent (5%) of the publicly traded securities of any corporation, provided that such ownership represents a passive investment and that the Contractor is not a controlling person of, or a member of a group that controls, such corporation.
This Section does not, in any way, restrict or impede the Contractor from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. 
c.Non-Solicitation of Employees. The Contractor agrees and covenants not to directly or indirectly solicit, hire, recruit, or attempt to solicit, hire, or recruit, any employee of the Company (“Covered Employee”), or induce the termination of employment of any Covered Employee, beginning on the last day of the Contractor’s Term (as defined by the Independent Contractor Agreement) with the Company, regardless of the reason during the Restricted Period. 
This non-solicitation provision explicitly covers all forms of oral, written, or electronic communication, including, but not limited to, communications by email, regular mail, express mail, telephone, fax, instant message, and social media, including, but not limited to, Facebook, LinkedIn, Instagram, Twitter, and any other social media platform, whether or not in existence at the time of entering into this Agreement. 
However, the Contractor’s posting to Facebook, LinkedIn, Instagram, Twitter, and any other social media platform about Contractor’s status, employment, or new ventures or employers shall not be considered to be in violation of this Section.  
d.Non-Solicitation of Customers. The Contractor understands and acknowledges that because of the Contractor’s experience with and relationship to the Company, the Contractor has had and will continue to have access to and has learned and will continue to learn about much or all of the Company’s customer information, including, but not limited to, Confidential Information. “Customer Information” includes, but is not limited to, names, phone numbers, addresses, email addresses, order history, order preferences, chain of command, pricing information, and other information identifying facts and circumstances specific to the customer and relevant to sales. 
The Contractor understands and acknowledges that: (i) the Company’s relationships with its customers is of great competitive value; (ii) the Company has invested and continues to invest substantial resources in developing and 

Exhibit 10.26

preserving its customer relationships and goodwill; and (iii) the loss of any such customer relationship or goodwill will cause significant and irreparable harm to the Company.  
The Contractor agrees and covenants, during the Restricted Period, beginning on the last day of the Contractor’s Term (as defined by the Independent Contractor Agreement) with the Company, not to directly or indirectly solicit, contact, or attempt to solicit or contact, using any other form of oral, written, or electronic communication, including, but not limited to, email, regular mail, express mail, telephone, fax, instant message, or social media, including but not limited to Facebook, LinkedIn, Instagram, or Twitter, or any other social media platform, whether or not in existence at the time of entering into this agreement, or meet with the Company’s current, former, or prospective customers for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company. 
3.Non-Disparagement. The Contractor agrees and covenants that the Contractor will not at any time make, publish, or communicate to any person or entity in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company or its businesses, or any of its employees and officers.  Neither the CEO nor Chairman of the Company shall at any time make any public statement concerning the Contractor that such individual making the statement knows to be false and that is materially injurious to the Contractor.
This Section does not, in any way, restrict or impede the Contractor or the Company from exercising protected rights to the extent that such rights cannot be waived by agreement, or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency. 
4.Acknowledgment. The Contractor acknowledges and agrees that: (i) the Contractor’s services to be rendered to the Company are of a special and unique character; (ii) that the Contractor will obtain knowledge and skill relevant to the Company’s industry, methods of doing business, and marketing strategies by virtue of the Contractor’s employment; and (iii) that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interests of the Company. 
The Contractor further acknowledges that: (i) the amount of the Contractor’s compensation reflects, in part, the Contractor’s obligations and the Company’s rights under this Agreement; (ii) that the Contractor has no expectation of any additional compensation, royalties, or other payment of any kind not otherwise referenced herein in connection herewith; and (iii) that the Contractor will not be subject to undue hardship by reason of the Contractor’s full compliance with the terms and conditions of this Agreement or the Company’s enforcement thereof.

Exhibit 10.26

5.Remedies. In the event of a breach or threatened breach by the Contractor of any of the provisions of this Agreement, the Contractor hereby consents and agrees that the Company shall be entitled to, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief.
6.Successors and Assigns. 
a.Assignment by the Company. To the extent permitted by state law, the Company may assign this Agreement to any subsidiary or corporate affiliate, or to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns.
b.No Assignment by the Contractor. The Contractor may not assign this Agreement or any part hereof. Any purported assignment by the Contractor shall be null and void from the initial date of purported assignment.
7.Warranty. Contractor represents and warrants that the Contractor is not a party to any non-compete restrictive covenant or related contractual limitation that would interfere with or hinder the Contractor’s ability to undertake the obligations and expectations of employment with the Company.
8.Choice of Law and Forum Selection. This Agreement are governed by, and construed in accordance with, the laws of the State of Ohio, without giving effect to the conflict of laws provisions thereof to the extent such principles or rules would require or permit the laws of any jurisdiction other than the State of Ohio to apply. Any dispute between Contractor and the Company will be brought solely (i) in the federal district court located in Cincinnati, Ohio or (ii) if its subject matter jurisdiction requirements are not met, in the state courts located in or for Hamilton County, Ohio.   
9.Entire Agreement. This Agreement, together with the Employment Separation Agreement and Release of Claims entered into by the Parties as of the date of this Agreement and the Independent Contractor Agreement entered into by the Parties as of the date of this Agreement, which are expressly incorporated herein, sets forth the entire agreement between the Parties and supersedes any and all prior agreements or understandings, oral or written, between the Parties.  

Exhibit 10.26

10.Modification and Waiver. No provision of this Agreement may be amended or modified unless the amendment or modification is agreed to in writing and signed by the Contractor and by the Chief Executive Officer of the Company. No waiver by either Party of any breach of any condition or provision of this Agreement to be performed by the other Party shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either Party in exercising any right, power, or privilege under this Agreement operate as a waiver to preclude any other or further exercise of any right, power, or privilege.
11.Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding on the Parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement. 
The Parties further agree that any such court is expressly authorized to modify any unenforceable provision of this Agreement instead of severing the unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement, or by making any other modifications it deems warranted to carry out the intent and agreement of the Parties as embodied in this Agreement to the maximum extent permitted by law.
The Parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. Should one or more of the provisions of this Agreement be held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had not been set forth in this Agreement.
12.Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.
13.Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Delivery of an executed counterpart’s signature page of this Agreement, by facsimile, electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, has the same effect as delivery of an executed original of this Agreement.

Exhibit 10.26

14.Tolling. If the Contractor violates any of the terms of the restrictive covenant obligations in this Agreement, the Restricted Period for all such restrictions shall automatically be extended by the period the Contractor was in violation of them.
15.Attorneys’ Fees. If litigation arises out of or concerning this Agreement, the prevailing party shall be entitled to its reasonable attorneys’ fees and costs.  
16.Notice. If and when Contractor’s Term (as defined by the Independent Contractor Agreement)  with Company terminates, Contractor agrees to provide to any subsequent Company a copy of this Agreement. In addition, Contractor authorizes Company to provide a copy of this Agreement to third parties, including, but not limited to, Contractor’s subsequent, anticipated, or possible future Company.
In Witness Whereof, each of the parties has executed this Agreement, in the case of the Company, by its duly authorized officer, as of the day and year first above written.
Contractor

                                                                    
Duane Hughes 
Address:                                                    
                                                
Date:    
    
Workhorse Group Inc.

By:                                                               
Name:    
Title: 
                        Date:    

Exhibit 10.26

EXHIBIT B

Exhibit 10.26

RELEASE OF CLAIMS

1.Pursuant to the Independent Contractor Agreement dated [_______], 2021 (the “IC Agreement”) by and between WORKHOURSE GROUP, INC. (the “Company”) and DUANE HUGHES (the “Contractor”), the Contractor hereby waives, releases, settles, and forever discharges the Company, its affiliates, and each of their respective past and present board members, executives, directors, trustees, officers, employees, agents, insurers, predecessors, successors, attorneys, and any other party associated with the Company (“Releasees”), to the fullest extent permitted by applicable law, from any and all claims, causes of action, rights, demands, debts, liens, liabilities, or damages of whatever nature, including negligence, whether known or unknown, suspected or unsuspected, that the Contractor ever had or may now have, which have been or could be raised by the Contractor against any Releasee through the date hereof. The Contractor’s waiver and release includes, but is not limited to, all claims, liens, demands, or liabilities arising out of or in any way connected with the Contractor’s employment with the Company, the termination of that employment, the performance of services under the IC Agreement, or the termination of those services or the IC Agreement pursuant to any federal, state, or local laws regulating employment or performance of services including, but not limited to, claims of race, national origin, ancestry, handicap, disability, religion, marital status, pregnancy, sexual orientation, gender identity, veteran status, sexual harassment, sex, and age discrimination, retaliation, and all claims under the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Employee Retirement Income Security Act, the Rehabilitation Act of 1973, The Reconstruction Era Civil Rights Act, as amended, the Americans with Disabilities Act of 1990 (“ADA”) and the ADA Amendments Act of 2008, the Family and Medical Leave Act, the Age Discrimination in Employment Act (“ADEA”), including without limitation the Older Workers’ Benefit Protection Act (“OWBPA”), the Equal Pay Act, the Fair Labor Standards Act, the Immigration Control and Reform Act, the Fair Credit Reporting Act, as well as any other common law, federal, state, or local laws, statutes, or ordinances that can be released. Nothing in this Release of Claims shall be construed to prevent the Contractor from participating in any charge of discrimination filed with the Equal Employment Opportunity Commission (“EEOC”) or similar state agency; provided, however, that by signing this Release of Claims, the Contractor waives the right to recover any monetary damages or attorney fees from the Releasees in any claim or lawsuit brought by or through the EEOC or similar state agency. If the Contractor brings an action or other claim against any of the Releasees in violation of this Release of Claims, or otherwise materially breaches the IC Agreement, the Company or such other of the Releasees shall have the right to set off any and all damages to which it or any of the Releasees may be entitled against payments or other benefits due to the Contractor under the IC Agreement or the Employee Separation Agreement and Release of Claims and to recover from the Contractor their attorneys’ fees and costs incurred in defending against such action or other claim. The Contractor agrees that the Contractor is the only person who is able to assert any right or claim arising out of the Contractor’s previous employment with the Company, the performance of services for the Company, the separation from the employment of the Company, and the termination of services for the Company. The Contractor hereby promises that the Contractor has not assigned, pledged, or otherwise sold any such rights or claims, nor has the Contractor relied on any promises other than those expressly contained in the IC Agreement.  The release of claims under this paragraph shall not apply to any claims that Contractor may have or will have with respect to his vested benefits, ownership of stock,  restricted stock, or stock options in the Company.  

The Contractor further expressly and specifically waives any and all rights or claims under the ADEA and the OWBPA (collectively, the “Act”). Contractor acknowledges and agrees that this waiver of any right or claim under the Act (the “Waiver”) is knowing and voluntary, and the Contractor further specifically agrees and represents as follows: 

Exhibit 10.26

a)that the IC Agreement in its entirety, as well as, specifically, this Release of Claims, are written in a manner that the Contractor understands; 
b)that this Release of Claims specifically relates to rights or claims under the Act; 
c)that the Contractor does not waive any rights or claims under the Act that may arise after the date of this Release of Claims;
d)that the Contractor waives rights or claims under the Act in exchange for consideration in addition to anything of value to which the Contractor is already entitled;
e)that the Contractor is hereby advised in writing to consult with an attorney prior to executing this Release of Claims, and that the Contractor has been, or has had the opportunity to be, represented by counsel of his choosing at all times relevant herein;
f)that the Contractor has twenty-one (21) days to consider this Release of Claims (although he may choose to sign it earlier);
g)that the Contractor has seven (7) days after signing this Release of Claims to revoke it; and
h)that this Release of Claims will not be effective until the date on which the revocation period has expired, which will be the eighth day after the Contractor signs this Release of Claims, assuming the Contractor has delivered it to the Company’s General Counsel by such date.
If this Release of Claims is acceptable, the Contractor must sign below on or after the expiration of the Term and deliver the original to the Company’s General Counsel by no later than 5:00 P.M. on October 21, 2021.

CONTRACTOR

By:___________________________
    Duane Hughes

Date:_____________________, 2021

COMPANY:

Workhorse Group, Inc.

By:    _______________________

Name: _______________________

Title:   _______________________Document

Exhibit 10.28

Execution Version
EMPLOYMENT AGREEMENT
This Employment Agreement (this “Agreement”) is made and entered into as of August 16, 2021 by and between WORKHORSE GROUP INC., a Nevada corporation (the “Company”), and James Harrington (the “Executive”).
RECITALS:
WHEREAS, the Company seeks to engage Executive as the Chief Administrative Officer, General Counsel, and Secretary of the Company;
WHEREAS, the Executive and the Company each desire that the Executive provide services to the Company, and each desire to enter into this Agreement with respect to the Executive’s employment, effective as of the date set forth above (the “Effective Date”), to provide compensation, severance, and other terms, on the terms and conditions set forth herein; and
WHEREAS, the Executive’s execution of this Agreement and separate Non-Compete Agreement (the “Non-Compete Agreement”) are material inducements for the Company to employ the Executive, and the Company’s execution of this Agreement and the grant of equity awards are material inducements for the Executive to enter into this Agreement and the Non-Compete Agreement.
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:
1.POSITION, DUTIES, AND LOCATION.
1.1Position. During the Employment Term, the Executive shall serve as the Chief Administrative Officer, General Counsel, and Secretary of the Company, reporting to the Chief Executive Officer of the Company (the “CEO”). The Executive’s job responsibilities will include managing and overseeing all legal and human resources matters of the Company in order to establish a successful business and manage growth. In addition, the Executive will have all authorities, duties and responsibilities as are customarily exercised by an individual serving in the Executive’s positions in a corporation of the size and nature of the Company, as well as those that are reasonably assigned by the Board of Directors of the Company (the “Board”) and the CEO.
1.2Duties. During the Employment Term, the Executive shall devote substantially all of his business time and attention to the performance of the Executive’s duties hereunder and will not engage in any other business, profession, or occupation for compensation or otherwise which would conflict or interfere with the performance of such services either directly or indirectly without the prior written consent of the CEO or the Board. Notwithstanding the foregoing, the Executive will be permitted, with the prior written consent of the CEO or the Board (which consent will not be unreasonably withheld or delayed) to act or serve as a director, trustee, or committee member of a reasonable number of business, civic, or charitable organizations as long as such activities are disclosed in writing to the Company in accordance with the Company’s Conflict of Interest Policy and such activities do not interfere with the performance of the Executive’s duties and responsibilities to the Company as provided hereunder.
1.3Place of Performance. The principal place of Executive’s employment shall be the Company’s principal executive office currently located in Loveland, Ohio, or a future principal executive office approved by the Board during the Employment Term; provided, however, that the Executive is expected to commute to the Company’s principal executive office from his current home for the first 6 months following the Effective Date. In addition, the Executive will be required to travel on Company business during the Employment Term.
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2.TERM AND TERMINATION. 
2.1Term. The Executive’s employment hereunder shall be effective as of the Effective Date and shall continue until the first anniversary thereof, unless terminated earlier as provided below; provided, however, that on such first anniversary of the Effective Date and each annual anniversary thereafter (such date and each annual anniversary thereof, a “Renewal Date”) this Agreement shall be deemed to be automatically extended, upon the same terms and conditions, for successive periods of one year, unless either party provides written notice of its intention not to extend the term of this Agreement at least 90 days’ prior to the applicable Renewal Date. The period during which the Executive is employed by the Company hereunder is hereinafter referred to as the “Employment Term.” 
2.2Termination. The Employment Term and the Executive’s employment hereunder may be terminated by either the Company or the Executive at any time and for any reason; provided, however, that unless otherwise provided herein, either party shall be required to give the other party at least 30 days’ advance written notice of any termination of the Executive’s employment except in the case of termination by the Company for Cause. Upon termination of the Executive’s employment during the Employment Term, the Executive shall be entitled to the compensation and benefits described in Sections 4, 5, and 6 below and shall have no further rights to any compensation or any other benefits from the Company or any of its affiliates.
3.COMPENSATION. 
3.1Base Salary. The Executive’s base salary will be $375,000 per year (the “Base Salary”). The Base Salary shall not be reduced during the initial one-year term of this Agreement; provided, however, that the Base Salary may be reduced by the Board or as may be delegated to the Compensation Committee of the Board (references herein to the Compensation Committee shall include reference to the Board if no such Committee exists at any time) if necessary in connection with a one-time reduction as part of a Company-wide or executive team-wide cost-cutting measure or Company-wide or executive team-wide cutback as a result of overall Company performance, in which case the Base Salary shall not be reduced by more than 10% without the Executive’s prior approval (not to be unreasonably withheld). The Base Salary shall be paid in accordance with the Company’s customary payroll practices and applicable wage payment laws.
3.2Bonuses. Each calendar year ending within the Employment Term (commencing with the calendar year ending December 31, 2021), Executive will be eligible to receive a cash bonus (“Cash Bonus”) as determined by the Compensation Committee based upon the level of achievement of performance goals established by the Compensation Committee and provided to the Executive in writing within ninety (90) days after the beginning of the calendar year. The Executive’s target Cash Bonus would be 50% of the then current Base Salary with the potential to receive up to 100% of the then current Base Salary if the maximum level of the performance goals is achieved. With respect to each calendar year ending within the Employment Term, the Compensation Committee will determine the amount of the Cash Bonus to be awarded within ninety (90) days after the end of the calendar year to which the Cash Bonus relates. The Compensation Committee has the sole and absolute discretion whether to award a Cash Bonus each calendar year, provided, however, that for the calendar year ending December 31, 2021, the Executive’s Cash Bonus will be no less than $100,000.  If the Compensation Committee awards a Cash Bonus, it will direct the Company to pay the awarded Cash Bonus at the next payroll to occur following such determination. To be eligible to receive a Cash Bonus for a particular calendar year, the Executive must be employed by the Company on the payroll date that the Cash Bonus is paid, except that in the case of the Executive’s death or Permanent Disability prior to such payroll date, the Executive only must be employed by the Company as of the last day of the particular calendar year.
3.3Equity Awards. 
(a)Signing Bonus. As further consideration for entering into this Agreement and the Non-Compete Agreement, within 30 days following the Effective Date the Executive will be granted a one-time award under the Company’s 2019 Stock Incentive Plan of 100,000 restricted shares reflected in a 
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Exhibit 10.28

separate restricted stock award agreement.  The restricted shares will have 3-year vesting periods, with shares vesting ratably every 6 months.
(b)Long Term Incentive Plan. In addition to the equity awards described in Section 3.3(a), the Executive may be granted a calendar year 2021 award under the Company’s 2019 Stock Incentive Plan for a number of restricted shares as determined by the Compensation Committee with 50% of the shares subject to time-based vesting, with a 3-year vesting period and shares vesting ratably every 6 months, and the other 50% of the shares subject to performance-based vesting, based on performance metrics to be determined by the Compensation Committee.  With respect to each subsequent calendar year ending during the Employment Term, the Executive will be eligible to receive additional equity incentive grants, subject to the Executive’s continued employment and satisfactory job performance, under any long-term incentive plan approved by the Board, with a target value of 150% of the then-current Base Salary (based on the grant date value of any such award). Each such annual award will be made within 6 months following the end of the calendar year and shall be subject to vesting and other terms and conditions as determined by the Compensation Committee. 
(c)Equity Plan Terms. Terms and conditions of all equity incentive grants, including those describe above, will be in accordance with the terms of the Company’s equity-based incentive plan in effect at the time of each such grant.
3.4Vacation and Benefits. The Executive is entitled to four (4) weeks of vacation, which will accrue on a pro-rata basis during the employment year, in addition to all public holidays when the office is closed. The Executive will be eligible to participate in all employee benefit plans established by the Company for its employees from time to time, subject to general eligibility and participation provisions set forth in such plans. In accordance with Company policies from time to time and subject to proper documentation, the Company will reimburse the Executive for all reasonable and proper travel and business expenses incurred by the Executive in the performance of his duties. The Executive will be covered by the Company’s directors’ and officers’ insurance policy, or an equivalent thereto (the “D & O Insurance Policy”), at the Company’s cost.
3.5Company’s Right to Recoup. Any incentive compensation (whether in the form of cash bonus, equity, or otherwise) payable under this Agreement or otherwise are subject to recoupment in the event of a financial restatement of the Company’s financial statements due to nonconformance with accounting principles generally accepted in the United States or under applicable law or a material misstatement of any other metric material to the Company’s performance, such as safety statistics, which, if initially reported properly, would have resulted in a lower amount of incentive compensation, regardless of form. The Company will make any determination for clawback or recoupment consistent with this Section 3.5 and the applicable clawback policy of the Company in good faith.  The action permitted to be taken by the Company under this Section 3.5 shall be in addition to, and not in lieu of, any and all other rights of the Company under applicable law and shall apply notwithstanding anything to the contrary contained herein.
3.6Housing, Transportation and Relocation Expenses. 
(a)Housing and Transportation. The Company shall pay or the Executive shall be reimbursed for the Executive’s reasonable and documented transportation and temporary housing expenses associated with the Executive’s travel to the Company’s principal executive office during the six-month period immediately following the Effective Date, up to a maximum of $7,500 per month.
(b)Relocation. The Company shall pay, or reimburse the Executive for, all reasonable and documented relocation expenses incurred by the Executive within one year following the Effective Date and relating to the Executive’s relocation to the Company’s principal executive office currently located in Loveland, Ohio or a future principal executive office approved by the Board during the Employment Term.
4.EFFECT OF TERMINATION GENERALLY. If the Executive’s employment with the Company terminates for any reason other than Termination Upon Change of Control or Involuntary 
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Exhibit 10.28

Termination, then the Executive shall be entitled to the benefits described in this Section 4 and shall have no further rights to any compensation or any other benefits from the Company or any of its affiliates.
4.1Accrued Salary, Vacation and Other Obligations and Benefits. All salary, accrued vacation, and any other amount earned, accrued or owing to Executive but not yet paid through the Termination Date shall be paid to Executive as soon as is administratively practicable following such Termination Date in accordance with the Company’s customary payroll procedures. The Executive shall also be entitled to benefits, if any, in accordance with applicable plans, programs and arrangements of the Company and its affiliates.
4.2Accrued Bonus Payment. The Executive (or the Executive’s estate in the event of the Executive’s death) shall receive a lump sum payment of any Cash Bonus to the extent that all the conditions for payment of such bonus have been satisfied and any such bonus was granted and is unpaid on the Termination Date. Such payment shall be made as soon as is administratively practicable following such Termination Date in accordance with the Company’s customary payroll procedures.
4.3Expense Reimbursement. As soon as administratively practicable following submission to the Company of proper expense reports by the Executive, the Company shall reimburse the Executive for all reasonable expenses incurred by the Executive, consistent with the Company’s expense reimbursement policies, in connection with the business of the Company prior to the Termination Date.
4.4Equity Awards. The period during which the Executive may exercise any rights (“Exercise Period”) under any outstanding stock options (or any other equity award, including, without limitation, stock appreciation rights and restricted stock units) granted to the Executive under any equity incentive plan or agreement adopted by the Board (the “Company Plans”) shall continue as set forth in the provisions of the agreements or instruments granting such awards; provide, however, such Exercise Period shall terminate immediately in the event the Executive is terminated for Cause notwithstanding any provision to the contrary contained in such agreements, instruments, or Company Plans. Further, upon termination of employment, the vesting of all outstanding stock options, restricted stock, and other equity awards shall cease (subject to any acceleration of vesting as provided in Sections 5 and 6 below).
5.TERMINATION UPON CHANGE OF CONTROL. Subject to Section 7, if the Executive’s employment with the Company terminates by reason of a Termination Upon Change of Control, then the Executive shall be entitled to the benefits described in Sections 4.1 and 4.3 above and in this Section 5 and shall have no further rights to any compensation or any other benefits from the Company or any of its affiliates:
5.1Severance Payment. In the event of the Executive’s Termination Upon Change of Control, the Executive shall be entitled to receive an amount equal to two (2) times the aggregate of (a) the Executive’s Base Salary and (b) the target Cash Bonus then in effect for the Executive for the calendar year in which such termination occurs, which shall be paid in a lump sum payable within thirty (30) days following the Termination Date. In addition to the foregoing severance payment, in the event of the Executive’s Termination Upon Change of Control, the Executive shall be entitled to receive, within thirty (30) days following the Termination Date, a lump sum payment equal to the aggregate of the following: (x) if the Executive’s Termination Upon Change of Control occurs before March 15, an amount equal to the Cash Bonus earned, but unpaid, with respect to the previous calendar year based on the Compensation Committee’s good faith determination of the level of attainment of the performance metrics for such previous calendar year; and (y) if the Executive’s Termination Upon Change of Control occurs after June 30, an amount equal to the target Cash Bonus then in effect for the Executive for the calendar year in which such termination occurs prorated to reflect the number of days the Executive was employed with the Company during such calendar year.
5.2Equity Compensation Acceleration. Upon the Executive’s Termination Upon Change of Control, (a) the vesting and exercisability of all then outstanding stock options, restricted stock, and other equity awards that are subject to time-based vesting and granted to the Executive under any Company 
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Exhibit 10.28

Plans shall be accelerated as to 100% of the shares subject to any such equity awards granted to the Executive, and (b) any outstanding equity awards that vest based on the attainment of performance goals shall vest for the then-current calendar year on a prorated basis based on the then level of attainment of the performance metrics determined in good faith by the Compensation Committee.
5.3Indemnification. In the event of the Executive’s Termination Upon Change of Control, (a) the Company shall continue to indemnify the Executive against all claims related to actions arising prior to the termination of the Executive’s employment to the fullest extent permitted by law, and (b) Executive’s coverage by the D & O Insurance Policy in effect immediately before the Change in Control shall be continued by the Company or its Successor under a D & O Insurance Policy with substantially the same terms for not less than 24 months following the Executive’s Termination Upon Change in Control. 
5.4No Mitigation; No Offset. In the event of the Executive’s Termination Upon Change of Control, the Executive shall be under no obligation to seek other employment or otherwise mitigate the obligations of the Company under this Agreement, and there shall be no offset against amounts due the Executive under this Agreement on account of any remuneration or other benefit earned or received by the Executive after such termination.
6.INVOLUNTARY TERMINATION. If the Executive’s employment with the Company terminates by reason of an Involuntary Termination, then the Executive shall be entitled to the benefits described in Sections 4.1 and 4.3 above and in this Section 6 and shall have no further rights to any compensation or any other benefits from the Company or any of its affiliates.
6.1Severance Payment. In the event of the Executive’s Involuntary Termination, the Executive shall be entitled to receive an amount equal to the aggregate of the Executive’s Base Salary and target Cash Bonus then in effect for the Executive for the calendar year in which such termination occurs, which shall be paid in a lump sum payable within thirty (30) days following the Termination Date. In addition to the foregoing severance payment, in the event of the Executive’s Involuntary Termination, the Executive shall be entitled to receive, within thirty (30) days following the Termination Date, a lump sum payment equal to the aggregate of the following: (x) if the Executive’s Involuntary Termination occurs before March 15, an amount equal to the Cash Bonus earned, but unpaid, with respect to the previous calendar year based on the Compensation Committee’s good faith determination of the level of attainment of the performance metrics for such previous calendar year; and (y) if the Executive’s Involuntary Termination occurs after June 30, an amount equal to the target Cash Bonus then in effect for the Executive for the calendar year in which such termination occurs prorated to reflect the number of days the Executive was employed with the Company during such calendar year.
6.2Equity Compensation Acceleration. In the event of the Executive’s Involuntary Termination, (a) the vesting and exercisability of all then outstanding stock options, restricted stock, and other equity awards that are subject to time-based vesting and granted to the Executive under any Company Plans shall be accelerated on a prorated basis based upon the period from the date of grant of the applicable award until the Executive’s Termination Date compared to the total vesting period of the applicable award, and (b) any outstanding equity awards that vest based on the attainment of performance goals shall vest on a prorated basis based upon (i) the period from the first day of the performance period of the applicable award until the Executive’s Termination Date compared to the total performance period of the applicable award, and (ii) the actual level of attainment of the performance metrics through the Termination Date determined in good faith by the Compensation Committee.
6.3Indemnification. In the event of the Executive’s Involuntary Termination, (a) the Company shall continue to indemnify the Executive against all claims related to actions arising prior to the Termination Date to the fullest extent permitted by law, and (b) Executive’s coverage by the Company’s D & O Insurance Policy in effect immediately before the Termination Date shall be 
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Exhibit 10.28

continued by the Company under a D & O Insurance Policy with substantially the same terms for not less than 24 months following the Executive’s Involuntary Termination.
6.4No Mitigation; No Offset. In the event of the Executive’s Involuntary Termination, the Executive shall be under no obligation to seek other employment or otherwise mitigate the obligations of the Company under this Agreement, and there shall be no offset against amounts due the Executive under this Agreement on account of any remuneration or other benefit earned or received by the Executive after such termination.
7.FEDERAL EXCISE TAX UNDER SECTION 4999.
7.1Excise Tax. Notwithstanding any other provision of this Agreement or any other plan, arrangement or agreement to the contrary, if (a) any amounts payable or benefits provided or to be provided to the Executive under this Agreement or otherwise in connection with his employment with the Company (“Covered Payments”) constitute parachute payments within the meaning of Code Section 280G, and (b) the Executive would, but for this Section 7, be subject to the excise tax imposed under Code Section 4999 (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then prior to making the Covered Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) to the Executive of the Covered Payments after payment of the Excise Tax to (ii) the Net Benefit to the Executive if the Covered Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under clause (i) above is less than the amount under clause (ii) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax (that amount, the “Reduced Amount”). The term “Net Benefit” means the present value of the Covered Payments net of all federal, state, local, foreign income, employment and excise taxes.
7.2Manner of Reduction. Any such reduction shall be made in accordance with Code Section 409A and the following: (i) the Covered Payments which do not constitute nonqualified deferred compensation subject to the requirements of Code Section 409A shall be reduced first; and (ii) all other Covered Payments shall then be reduced as follows: (A) cash payments shall be reduced before non-cash payments; and (B) payments to be made on a later payment date shall be reduced before payments to be made on an earlier payment date.
7.3Calculation by Independent Public Accountants. Unless the Company and the Executive otherwise agree in writing, any calculation of the amount of any parachute payments payable or provided to the Executive shall be made in writing in good faith by the Company’s independent public accountants immediately before the Change of Control (the “Accountants”), which shall provide detailed supporting calculations to the Company and the Executive as requested by the Company or the Executive. The Accountants’ conclusions shall be final and binding on the Company and the Executive. For purposes of making such calculations, the Accountants may rely on reasonable, good faith assumptions and approximations concerning the application of Sections 280G and 4999 of the Code. The Company and the Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make the calculations and conclusions required by this Section 7. The Company shall bear all fees and expenses the Accountants may charge in connection with these services.
7.4Corrective Payments. It is possible that after the calculations, conclusion and selections made pursuant to this Section 7 the Executive will receive Covered Payments that are in the aggregate more than the amount provided under this Section 7 (“Overpayment”) or less than the amount provided under this Section 7 (“Underpayment”).
(a)In the event that (i) the Accountants determine, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or the Executive which the Accountants believe has a high probability of success, that an Overpayment has been made, or (ii) it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and conclusively resolved that an Overpayment has been made, then the Executive shall pay 
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Exhibit 10.28

any such Overpayment to the Company, together with interest at the applicable federal rate (as defined in Code Section 7872(f)(2)(A)) from the date of the Executive’s receipt of the Overpayment until the date of repayment.
(b)In the event that (i) the Accountants, based upon controlling precedent or substantial authority, determine that an Underpayment has occurred, or (ii) a court of competent jurisdiction determines that an Underpayment has occurred, any such Underpayment will be paid promptly by the Company to or for the benefit of the Executive, together with interest at the applicable federal rate (as defined in Code Section 7872(f)(2)(A) of the Code) from the date the amount would have otherwise been paid to the Executive until the payment date.
8.DEFINITIONS. 
8.1Capitalized Terms Defined. Capitalized terms used in this Agreement shall have the meanings set forth in this Section 8, unless the context clearly requires a different meaning.
8.2“Cause” means:
(a)the Executive substantially failed to perform his duties or to follow the lawful written directions of the CEO or the Board (other than any such failure resulting from incapacity due to physical or mental illness);
(b)the Executive engaged in willful misconduct or incompetence that is materially detrimental to the Company or any of its affiliates;
(c)the Executive failed to comply with the Employee Invention Assignment & Confidentiality Agreement, the Company’s insider trading policy, the Executive’s Non-Compete Agreement or any other policies of the Company where non-compliance would be materially detrimental to the Company or any of its affiliates; or
(d)the Executive’s conviction of or plea of guilty or nolo contendere to a felony or crime involving moral turpitude (excluding drunk driving unless combined with other aggravating circumstances or offenses), or the Executive’s commission of any embezzlement, misappropriation, or fraud, whether or not related to the Executive’s employment with the Company or any of its affiliates.
With respect to Causes described in Subsections (a), (b) and (c) above, no termination by reason of such Cause shall occur unless the Executive (i) has been provided with notice of the Company’s intention to terminate the Executive for such Cause and the Company’s reason(s), and (ii) has failed to cure or correct such failure, misconduct, incompetency or non-compliance within thirty (30) days of receiving such notice, provided that such notice and cure period requirements shall not apply in the event that such failure, misconduct, incompetency or non-compliance is of a nature that it is unable to be cured or corrected.
8.3“Change of Control” means:
(a)any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing fifty (50%) percent or more of (i) the outstanding shares of common stock of the Company, or (ii) the combined voting power of the Company’s outstanding securities;
(b)the Company is party to a merger or consolidation, or series of related transactions, which results in the voting securities of the Company outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity), 
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directly or indirectly, more than fifty (50%) percent of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or 
(c)the sale or disposition of all or substantially all of the Company’s assets, or consummation of any transaction, or series of related transactions, having similar effect (other than to a subsidiary of the Company).
8.4“Code” means the Internal Revenue Code of 1986, as amended.
8.5“Company” means Workhorse Group Inc. and, following a Change of Control, any Successor.
8.6“Involuntary Termination” means:
(a)any termination of the employment of the Executive by the Company without Cause or on account of the Company’s failure to renew this Agreement in accordance with Section 2.1; or
(b)any resignation by the Executive for Good Reason where such resignation occurs within thirty (30) days following the Company’s failure to remedy the condition(s) constituting Good Reason.
Notwithstanding the foregoing, the term “Involuntary Termination” shall not include any termination of the employment of the Executive: (1) by the Company for Cause; (2) by the Company as a result of the Permanent Disability of the Executive; (3) as a result of the death of the Executive; (4) that is a “Termination Upon Change of Control”; or (5) as a result of the voluntary termination of employment by the Executive for any reason other than Good Reason.
8.7“Good Reason” means the occurrence of any of the following conditions, without the Executive’s consent:
(a)A reduction in the Executive’s Base Salary or target Cash Bonus opportunity as a percentage of Base Salary; provided, however, that this Subsection (a) shall not apply in the event of a one-time reduction in the Executive’s Base Salary or target Cash Bonus opportunity as part of a Company-wide or executive team-wide cost-cutting measure or Company-wide or executive team-wide cutback as a result of overall Company performance in accordance with Section 3.1.
(b)The failure of the Company (i) to continue to provide the Executive an opportunity to participate in any benefit or compensation plans provided to employees who hold positions with the Company comparable to the Executive’s position, (ii) to provide the Executive all other fringe benefits (or the equivalent) in effect for the benefit of any employee group which includes any employee who hold a position with the Company comparable to the Executive’s position, where in the event of a Change of Control, such comparison shall be made relative to the period immediately prior to the public announcement of such Change of Control, or (iii) to continue to provide director’s and officers’ insurance, in each case if such failure causes a material reduction in the Executive’s overall compensation and benefits package.
(c)A material breach of this Agreement by the Company including, in the event of a Change of Control, the failure of any Successor to assume and agree to perform the obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform such obligations if no succession had taken place, except where such assumption occurs by operation of law.
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Exhibit 10.28

(d)A material, adverse change in the Executive’s authority, duties, or responsibilities (other than temporarily while the Executive is physically or mentally incapacitated or as required by applicable law), taking into account the Company’s size, status as a public company, and capitalization as of the Effective Date of this Agreement, other than a change to a position that is a Substantive Functional Equivalent.
(e)A change in the Executive’s principal place of employment that is greater than 75 miles from the Executive’s principal place of employment as set forth in Section 1.3 or, if his principal place of employment shall have been changed with his express or implied consent, a change to a principal place of employment other than such consented place, other than a change directed by the Executive.
Within ninety (90) days of the occurrence of any of the foregoing conditions, the Executive must notify the Company of the specific condition(s) that form the basis for Executive’s belief that Executive is entitled to terminate employment for Good Reason. The Company shall have an opportunity to remedy the foregoing condition(s) within thirty (30) days of its receipt of such notice.
8.8“Permanent Disability” means that:
(a)the Executive has been incapacitated by bodily injury, illness or disease so as to be prevented thereby from engaging in the performance of the Executive’s duties;
(b)such total incapacity shall have continued for a period of six consecutive months; and
(c)such incapacity will, in the opinion of a qualified physician selected by the Company, be permanent and continuous during the remainder of the Executive’s life.
8.9“Substantive Functional Equivalent” means that the Executive’s position must:
(a)be in a substantive area of the Executive’s competence (e.g., financial or executive management) and not materially different from the position occupied immediately prior;
(b)allow the Executive to serve in a role and perform duties functionally equivalent to those performed immediately prior to the change; and
(c)not otherwise constitute a material, adverse change in authority, title, status, responsibilities or duties from those of the Executive immediately prior to the change, causing the Executive to be of materially lesser rank or responsibility, including requiring the Executive to report to a person other than the CEO or the Board.
8.10“Successor” means any successor in interest to, or assignee of, all or substantially all of the business and assets of the Company.
8.11“Termination Date” means the date of the termination of the Executive’s employment with the Company.
8.12“Termination Upon Change of Control” means:
(a)any termination of the employment of the Executive by the Company without Cause, including expiration of the Employment Term in accordance with Section 2.1 as a result of the Company’s election not to renew the Employment Term, which termination of employment occurs during the period commencing on date 
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Exhibit 10.28

of a Change of Control and ending on the date that is eighteen (18) months following the Change of Control; or
(b)any resignation by Executive for Good Reason where (i) such Good Reason occurs during the period commencing on the date of a Change of Control and ending on the date that is eighteen (18) months following the Change of Control, and (ii) such resignation occurs at or after such Change of Control and in any event within six (6) months following the occurrence of such Good Reason. 
Notwithstanding the foregoing, if the Executive’s employment with the Company is terminated without Cause or for Good Reason during the six-month period prior to the Change of Control, then for purposes of this Agreement the Executive will be deemed to have experienced a Termination Upon Change of Control.
For the avoidance of doubt, the term “Termination Upon Change of Control” shall not include any termination of the employment of the Executive: (1) by the Company for Cause; (2) by the Company as a result of the Permanent Disability of the Executive; (3) as a result of the death of the Executive; or (4) as a result of the voluntary termination of employment by the Executive for any reason other than Good Reason.
9.EXCLUSIVE REMEDY.
9.1No Other Benefits Payable. The Executive shall be entitled to no other termination, severance or change of control compensation, benefits, or other payments from the Company as a result of any termination with respect to which the payments and benefits described in this Agreement have been provided to the Executive, except as expressly set forth in this Agreement.
9.2Release of Claims. The payments and other benefits provided in Sections 5 and 6 of this Agreement upon termination of the Executive’s employment are conditioned upon the delivery by the Executive to the Company of a signed and effective general release of claims in a form provided by the Company and such release becoming effective within thirty (30) days following the Termination Date; provided, however, that the Executive shall not be required to release any rights the Executive may have to be indemnified by the Company or as otherwise provided under this Agreement.
9.3Non-duplication of Benefits. The payments and benefits provided under this Agreement are intended to replace payments and benefits under any other written agreement with the Company and/or another plan or policy of the Company in their entirety and, accordingly, as between this Agreement and those other agreements, plans or policies, there shall be no duplication of payments or benefits. If the Executive has any other binding written agreement with the Company which provides that, upon a Change of Control, Termination Upon a Change of Control or Involuntary Termination, the Executive shall receive termination, severance or similar payments or benefits, then no benefits shall be received by Executive under this Agreement unless, prior to making the payment or providing the benefits under this Agreement, the Executive waives Executive’s rights to all such other payments and benefits, in which case this Agreement shall supersede any such written agreement with respect to such other benefits.
10.COOPERATION. The parties agree that certain matters in which the Executive will be involved during the Employment Term may necessitate the Executive’s cooperation or assistance in the future. Accordingly, following the termination of the Executive’s employment for any reason, to the extent reasonably requested by the Board or the CEO, the Executive shall cooperate with the Company in connection with any claims arising out of the Executive’s employment with the Company including preparing for and providing truthful testimony; provided that, the Company shall make reasonable efforts to minimize disruption of the Executive’s other activities. The Company shall reimburse the Executive for reasonable expenses incurred in connection with such cooperation and assistance and, to the extent that the Executive is required to spend substantial time on such matters, the Company shall compensate the Executive at an hourly rate based on the Executive’s Base Salary on the Termination Date.
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Exhibit 10.28

11.NON-COMPETE; PROPRIETARY AND CONFIDENTIAL INFORMATION. During the Employment Term and following any termination of employment, Executive agrees to continue to abide by the terms and conditions of the Non-Compete Agreement and each other non-competition agreement (during the term of such agreement) and the separate Employee Invention Assignment & Confidentiality Agreement between the Executive and the Company.
12.ARBITRATION. 
12.1Disputes Subject to Arbitration. Any claim, dispute or controversy arising out of this Agreement, any other agreement between the Executive and the Company or any of its affiliates, or the Executive’s employment with the Company or the termination thereof (other than claims relating to misuse or misappropriation of the intellectual property of the Company or its affiliates), the interpretation, validity or enforceability of this Agreement or the alleged breach thereof shall be submitted to binding arbitration by a sole arbitrator under the National Rules for the Resolution of Employment Disputes of the American Arbitration Association and this Section 12; provided, however, that (a) the arbitrator shall have no authority to make any ruling or judgment that would confer any rights with respect to the trade secrets, confidential and proprietary information or other intellectual property of the Company upon the Executive or any third party; and (b) this arbitration provision shall not preclude the Company from seeking legal and equitable relief from any court having jurisdiction with respect to any disputes or claims relating to or arising out of the misuse or misappropriation of the Company’s intellectual property or violation by the Executive of any non-competition agreement or other restrictive covenant in favor of the Company. Judgment may be entered on the award of the arbitrator in any court having jurisdiction.
12.2Costs of Arbitration. Each party shall be responsible for its own costs and expenses, including, without limitation, attorneys’ fees.  The Arbitrator may determine to make an award of fees and/or costs to either party. Except as otherwise so awarded, the parties will share equally the fees of the American Arbitration Association and the arbitrator. 
12.3Site of Arbitration. The site of the arbitration proceeding shall be in Cincinnati, Ohio.
13.NOTICES. For purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or five (5) business days after being mailed, return receipt requested, as follows: (a) if to the Company, attention: Chief Executive Officer, at the Company’s offices at 100 Commerce Blvd., Loveland, OH 45140 and, (b) if to the Executive, at the Executive’s principal residence as it appears in the Company’s records. Either party may provide the other with notices of change of address, which shall be effective upon receipt.

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Exhibit 10.28

14.MISCELLANEOUS PROVISIONS.
14.1Heirs and Representatives of the Executive; Successors and Assigns of the Company. This Agreement is personal to the Executive and shall not be assigned by the Executive, except that in the event of the Executive’s death or Permanent Disability the post-termination benefits of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devises and legatees. The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the successors and assigns of the Company.
14.2Amendment and Waiver. No provision of this Agreement shall be modified, amended, waived or discharged unless the modification, amendment, waiver or discharge is agreed to in writing, specifying such modification, amendment, waiver or discharge, and signed by the Executive and by an authorized officer of the Company (other than the Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. To be effective, any waiver must be set forth in a writing signed by the waiving party and must specifically refer to the condition(s) or provision(s) of this Agreement being waived.
14.3Withholding Taxes. All payments made or benefits provided under this Agreement shall be subject to deduction of all federal, state, local and other taxes required to be withheld by applicable law.
14.4Severability. The invalidity or enforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.
14.5Governing Law. The validity, interpretation, construction, performance and enforcement of this Agreement shall be governed by the laws of the State of Ohio, without regard to where the Executive has his residence or principal office or where he performs his duties hereunder, and without reference to principles of conflict of laws.
14.6Exemption from, or Compliance with, Code Section 409A. The payments to be made and the benefits to be provided under this Agreement are intended to be either exempt from, or compliant with, the requirements of Code Section 409A, and this Agreement shall be construed and administered in accordance with such intent and in accordance with this Section 14.6. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with the requirements of Code Section 409A or an applicable exemption thereto. Any payments under this Agreement that may be exempt from Code Section 409A either as separation pay due to the Executive’s involuntary separation from service or as a short-term deferral shall be treated as exempt from Code Section 409A under this Agreement to the maximum extent possible. Each installment payment provided hereunder that is subject to the requirements of Code Section 409A shall be treated as a separate payment for purposes of Code Section 409A. Any payments to be made under this Agreement in connection with Executive’s termination of employment shall only be made if such termination of employment constitutes a “separation from service” under Code Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement are exempt from, or comply with, Code Section 409A, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Executive on account of noncompliance with Code Section 409A.
To the extent any payments or benefits to which the Executive becomes entitled under this Agreement, or under any agreement or plan referenced herein, in connection with Employee’s termination of employment with the Company constitute nonqualified deferred compensation subject to 
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Exhibit 10.28

the requirements of Code Section 409A, and the Executive is determined, at the time of such termination of employment, to be a “specified employee” under Code Section 409A, then such payments shall not be made or benefits commenced until the earliest of (i) the first payroll date to occur following the six (6)-month anniversary of such termination of employment; or (ii) the first payroll date to occur following the date of the Executive’s death following such termination of employment. Upon the expiration of the applicable suspension period, the aggregate amount of any payments and benefits which would have otherwise been made or provided during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to the Executive (or Executive’s estate in the case of his death) in one lump sum without interest, and thereafter any remaining payments or benefits shall be paid or provided without suspension in accordance with their original schedule.
To the extent required by Code Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (ii) any reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (iii) any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.
14.7Entire Agreement. This Agreement, together with the Non-Compete and any other non-competition agreements between the Executive and the Company, the Employee Invention Assignment & Confidentiality Agreement between the Executive and the Company, and the restricted stock award agreements and stock option award agreements with respect to the equity awards, contains the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior agreements, including understandings, term sheets, discussions, negotiations and undertakings, whether written or oral, between them relating to the subject matter of this Agreement. In the event of any inconsistency between any provision of this Agreement and any provision of any plan, employee handbook, personnel manual, program, policy, arrangement or agreement of the Company or any of its affiliates, the provisions of this Agreement shall control.
14.8Surviving Terms. Except as otherwise set forth in this Agreement, to the extent necessary to carry out the intentions of the parties hereunder the respective rights and obligations of the parties hereunder shall survive any termination of the Executive’s employment.
[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT FOLLOWS]
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Exhibit 10.28

In Witness Whereof, each of the parties has executed this Agreement, in the case of the Company, by its duly authorized officer, as of the day and year first above written.
EXECUTIVE
/s/ James Harrington            
James Harrington

Address: N2988 Lake Forest Circle
               Lake Geneva, Wisconsin  53147
WORKHORSE GROUP INC.
By: /s/ Richard Dauch 
Name: Richard Dauch
Title: Chief Executive Officer
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