Document:

Exhibit
10.4

 

Execution
Version

  

Guarantee

 

This
Guarantee, dated as of December 31, 2018 (as amended, supplemented or otherwise
modified from time to time, this “Guarantee”), is made by Workhorse Technologies Inc., an Ohio corporation,
Workhorse Properties Inc., an Ohio corporation, Workhorse Motor Works Inc, an Indiana corporation, and Surefly, Inc., a Delaware
corporation (together with any additional Persons named pursuant to Section 5.5, each a “Guarantor”
and collectively the “Guarantors”), in favor of the Secured Parties (as defined below).

 

W i t n e s s e t h:

 

Whereas,
pursuant to the Credit Agreement, dated as of December 31, 2018 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”), by and among Workhorse Group Inc. (the “Borrower”), the financial
institutions from time to time party thereto as lenders (collectively, with their permitted successors and assignees, the “Lenders”)
and Wilmington Trust, National Association, in its capacity as agent (the “Agent”), the Lenders have extended
Commitments to make Loans to the Borrower; and

 

Whereas,
as a condition precedent to the making of the
Loans under the Credit Agreement, the Guarantors are required to execute and deliver this Guarantee to the Agent for the benefit
of the Secured Parties on the date hereof;

 

Now,
therefore, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and in order to induce the Lenders to make the Loans to the Borrower,
each Guarantor hereby agrees, for the benefit of the Secured Parties, as follows.

 

Article
I

Definitions

 

SECTION
1.1. Certain Terms. The following terms (whether or not underscored) when used in this Guarantee, including its preamble
and recitals, shall have the following meanings (such definitions to be equally applicable to the singular and plural forms thereof):

 

“Agent”
is defined in the first recital.

 

“Borrower”
is defined in the first recital.

 

“Credit
Agreement” is defined in the first recital.

 

“Guarantor”
is defined in the preamble.

 

“Guarantee”
is defined in the preamble.

 

“Lenders”
is defined in the first recital.

 

“Obligor”
is defined in Section 2.1(a).

 

     

     

    

 

“Secured
Parties” means, collectively, the Agent, the Lenders and any permitted holder of the Obligations, and “Secured
Party” means any one of them.

 

SECTION
1.2. Credit Agreement Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this
Guarantee, including its preamble and recitals, have the meanings provided in the Credit Agreement.

 

Article
II

Guarantee Provisions

 

SECTION
2.1. Guarantee. Each Guarantor jointly and severally, absolutely, unconditionally and irrevocably:

 

(a)
guarantees the full and punctual payment when due, whether at stated maturity, by required prepayment, declaration, acceleration,
demand or otherwise, and performance of all Obligations of the Borrower and any other Loan Party (each, an “Obligor”)
now or hereafter existing, whether for principal, interest (including interest accruing at the then applicable Default Rate as
provided in Section 2.3.1 of the Credit Agreement, whether or not a claim for post-filing or post-petition interest is allowed
under Applicable Law following the institution of a proceeding under bankruptcy, insolvency or similar laws), fees, expenses or
otherwise (including all such amounts which would become due but for the operation of the automatic stay under Section 362(a)
of the United States Bankruptcy Code, 11 U.S.C. §362(a), and the operation of Sections 502(b) and 506(b) of the United States
Bankruptcy Code, 11 U.S.C. §502(b) and §506(b)); and

 

(b)
indemnifies and holds harmless each Secured Party for any and all costs and expenses (including the reasonable fees and out-of-pocket
expenses of counsel to such Secured Party) incurred by such Secured Party in enforcing any rights under this Guarantee, except
to the extent such amounts arise or are incurred as a consequence of such Secured Party’s own gross negligence or willful
misconduct;

 

provided,
that each Guarantor shall only be liable under this Guarantee for the maximum amount of such liability that can be hereby incurred
without rendering this Guarantee, as it relates to such Guarantor, voidable under Applicable Law relating to fraudulent conveyance
or fraudulent transfer, and not for any greater amount. This Guarantee constitutes a guarantee of payment when due and not of
collection, and each Guarantor specifically agrees that it shall not be necessary or required that the Secured Parties exercise
any right, assert any claim or demand or enforce any remedy whatsoever against such Guarantor or any other Person before or as
a condition to the obligations of such Guarantor becoming due hereunder.

 

SECTION
2.2. Reinstatement, Etc. Each Guarantor agrees that this Guarantee shall continue to be effective or be reinstated (including
after the Loans are Paid in Full), as the case may be, if at any time any payment (in whole or in part) of any of the Obligations
is invalidated, declared to be fraudulent or preferential, set aside, rescinded or must otherwise be restored by any Secured Party,
including upon the occurrence and during the continuance of any Event of Default set forth in Section 8.1.3 of the Credit Agreement
or otherwise, all as though such payment had not been made.

 

    2

     

    

 

SECTION
2.3. Guarantee Absolute, Etc. This Guarantee shall in all respects be a continuing, absolute, unconditional and irrevocable
guarantee of payment, and shall remain in full force and effect until (unless reinstated pursuant to Section 2.2 above) the Loans
are Paid in Full. Each Guarantor guarantees that the Obligations shall be paid strictly in accordance with the terms of each Loan
Document under which they arise, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of the Secured Parties with respect thereto. The liability of each Guarantor under this Guarantee
shall be absolute, unconditional and irrevocable irrespective of:

 

(a)
any lack of validity, legality or enforceability of any Loan Document;

 

(b)
the failure of any Secured Party (i) to assert any claim or demand or to enforce any right or remedy against such Guarantor
or any other Person (including any other guarantor) under the provisions of any Loan Document or otherwise, or (ii) to exercise
any right or remedy against any other guarantor (including such Guarantor and any other Guarantor) of, or collateral securing,
any Obligations;

 

(c)
any change in the time, manner or place of payment of, or in any other term of, all or any part of the Obligations, or any other
extension, compromise or renewal of any Obligation, or any amendment to, rescission, waiver, or other modification of, or any
consent to or departure from, any of the terms of any Loan Document;

 

(d)
any reduction, limitation, impairment or termination of any Obligations for any reason (other than Payment in Full of the Loans),
including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to (and each Guarantor hereby
waives any right to or claim of) any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality, irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Obligations or otherwise;

 

(e)
any addition, exchange or release of any collateral or of any Person that is (or will become) a guarantor of the Obligations,
or any surrender or non-perfection of any collateral, or any amendment to, or waiver or release of, or addition to, or consent
to or departure from, any other guarantee held by the Secured Parties securing any of the Obligations; or

 

(f)
any other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, any Obligor,
any surety or any guarantor (including any Guarantor).

 

SECTION
2.4. Setoff. Each Guarantor hereby irrevocably authorizes each Secured Party, without the requirement that any notice be
given to such Guarantor (such notice being expressly waived by such Guarantor), upon the occurrence and during the continuance
of any Event of Default, to appropriate and apply to the payment of the Obligations owing to it (whether or not then due), and
(as security for such Obligations) each Guarantor hereby grants to each Secured Party a continuing security interest in, any and
all balances, credits, deposits, accounts or moneys of such Guarantor then or thereafter maintained with or on behalf of such
Secured Party. Each Secured Party agrees to notify such Guarantor after any such set-off and application made by such Secured
Party provided, that the failure to give such notice shall not affect the validity of such setoff and application. The
rights of the Secured Parties under this Section are in addition to other rights and remedies (including other rights of setoff
under Applicable Law or otherwise) which the Secured Parties may have.

 

    3

     

    

 

SECTION
2.5. Waiver, Etc. Each Guarantor waives promptness, diligence, notice of acceptance and any other notice with respect to
any of the Obligations and this Guarantee and any requirement that the Secured Parties protect, secure, perfect or insure any
Lien, or any property subject thereto, or exhaust any right or take any action against any Obligor or any other Person (including
any Guarantor) or entity or any collateral securing the Obligations, as the case may be.

 

SECTION
2.6. Postponement of Subrogation, Etc. Each Guarantor agrees that it will not exercise any rights which it may acquire
by way of rights of subrogation under any Loan Document to which it is a party, nor shall such Guarantor seek or be entitled to
seek any contribution or reimbursement from the Borrower or any other Obligor or Guarantor, in respect of any payment made under
any Loan Document or otherwise, until after the Loans are Paid in Full. Any amount paid to such Guarantor on account of any such
subrogation rights prior to such Payment in Full shall be held in trust for the benefit of the Secured Parties and shall immediately
be paid and turned over to the Agent, for the benefit of the Secured Parties, in the exact form received by such Guarantor (duly
endorsed in favor of the Lenders, if required), to be credited and applied against the Obligations, whether matured or unmatured,
in accordance with Section 2.7; provided, that if such Guarantor has made payment to the Agent of all or any part
of the Obligations and the Loans are Paid in Full, then, at such Guarantor’s request, the Agent will, at the expense of
such Guarantor, execute and deliver to such Guarantor appropriate documents (without recourse and without representation or warranty)
necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Obligations resulting from such payment.
In furtherance of the foregoing, at all times prior to such Payment in Full, such Guarantor shall refrain from taking any action
or commencing any proceeding against the Borrower or any other Obligor or Guarantor (or their successors or assigns, whether in
connection with a bankruptcy proceeding or otherwise) to recover any amounts in respect of payments made under this Guarantee
to the Lenders.

 

SECTION
2.7. Payments; Application. Each Guarantor agrees that all obligations of such Guarantor hereunder shall be paid solely
in U.S. Dollars to the Secured Parties in immediately available funds, without set-off, counterclaim or other defense and in accordance
with Sections 2.4, 2.5, 2.6, 2.7 and 3.1 of the Credit Agreement, free and clear of and without deduction for any non-Excluded
Taxes, such Guarantor hereby agreeing to comply with and be bound by the provisions of Sections 2.4, 2.5, 2.6, 2.7 and 3.1 of
the Credit Agreement in respect of all payments and application of such payments made by it hereunder and the provisions of which
Sections are hereby incorporated into and made a part of this Guarantee by this reference as if set forth herein; provided,
that references to the “Borrower” in such Sections shall be deemed to be references to such Guarantor, and references
to “this Agreement” in such Sections shall be deemed to be references to this Guarantee.

 

    4

     

    

 

Article
III

Representations and Warranties

 

In
order to induce the Secured Parties to enter into the Credit Agreement and for the Lenders to make the Loans thereunder, each
Guarantor represents and warrants to the Agent, for the benefit of the Secured Parties, as set forth below.

 

SECTION
3.1. Credit Agreement Representations and Warranties. The representations and warranties contained in Section 5 of the
Credit Agreement, insofar as the representations and warranties contained therein are applicable to such Guarantor and its properties,
are true and correct in all material respects as of the Closing Date, each such representation and warranty set forth in such
Section (insofar as applicable as aforesaid) and all other terms of the Credit Agreement to which reference is made therein, together
with all related definitions and ancillary provisions, being hereby incorporated into this Guarantee by this reference as though
specifically set forth in this Article.

 

SECTION
3.2. Financial Condition, Etc. Each Guarantor has knowledge of the Borrower’s and each other Guarantor’s financial
condition and affairs and has adequate means to obtain from each such Person on an ongoing basis information relating thereto
and to each such Person’s ability to pay and perform the Obligations, and agrees to assume the responsibility for keeping,
and to keep, so informed for so long as this Guarantee is in effect. Each Guarantor acknowledges and agrees that no Secured Party
shall have any obligation to investigate the financial condition or affairs of the Borrower or any other Guarantor for the benefit
of such Guarantor nor to advise such Guarantor of any fact respecting, or any change in, the financial condition or affairs of
each such Person that might become known to any Secured Party at any time, whether or not such Secured Party knows or believes
or has reason to know or believe that any such fact or change is unknown to such Guarantor, or might (or does) materially increase
the risk of such Guarantor as guarantor, or might (or would) affect the willingness of such Guarantor to continue as a guarantor
of the Obligations.

 

SECTION
3.3. Best Interests. It is in the best interests of each Guarantor to execute this Guarantee inasmuch as each Guarantor
will, as a result of being an Affiliate of the Borrower, derive substantial direct and indirect benefits from the Loans made to
the Borrower by the Lenders pursuant to the Credit Agreement, and each Guarantor agrees that the Lenders are relying on this representation
in agreeing to make the Loans to the Borrower.

 

Article
IV

Covenants, Etc.

 

SECTION
4.1. Covenants. Each Guarantor covenants and agrees that, at all times prior to Payment in Full of the Loans, it will perform,
comply with and be bound by all of the agreements, covenants and obligations contained in the Credit Agreement (including Sections
6 and 7 of the Credit Agreement) which are applicable to such Guarantor or its properties, each such agreement, covenant and obligation
contained in the Credit Agreement and all other terms of the Credit Agreement to which reference is made in this Article, together
with all related definitions and ancillary provisions, being hereby incorporated into this Guarantee by this reference as though
specifically set forth in this Article.

 

    5

     

    

 

Article
V

Miscellaneous Provisions

 

SECTION
5.1. Loan Document. This Guarantee is a Loan Document executed pursuant to the Credit Agreement and shall (unless otherwise
expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including
Section 10 thereof. Notwithstanding anything contained herein to the contrary, to the extent that any provision in this Guarantee
conflicts with any provision in the Credit Agreement, the terms of the Credit Agreement shall control.

 

SECTION
5.2. Binding on Successors, Transferees and Assigns; Assignment. This Guarantee shall remain in full force and effect until
the Loans are Paid in Full, shall be binding upon each Guarantor and its successors, transferees and assigns and shall inure to
the benefit of and be enforceable by the Agent and the other Secured Parties; provided, that such Guarantor may not (unless
otherwise permitted under the terms of the Credit Agreement) assign any of its obligations hereunder without the prior written
consent of the Lenders. Without limiting the generality of the foregoing, each Lender may assign or otherwise transfer (in whole
or in part) the Commitments, Notes or Loans held by it to any other Person to the extent permitted by the Credit Agreement, and
such other Person shall thereupon become vested with all rights and benefits in respect thereof granted to such Lender under each
Loan Document (including this Guarantee) or otherwise.

 

SECTION
5.3. Amendments, Etc. No amendment to or waiver of any provision of this Guarantee, nor consent to any departure by any
Guarantor from its obligations under this Guarantee, shall in any event be effective unless the same shall be in writing and signed
by the Secured Parties and then such waiver or consent shall be effective only in the specific instance and for the specific purpose
for which given.

 

SECTION
5.4. Notices. All notices and other communications provided for hereunder shall be given or made as set forth in Section
10.2 of the Credit Agreement.

 

SECTION
5.5. Release of Guarantors. Subject to Section 2.2 of this Guarantee, upon (a) the Disposition of a Guarantor
to a Person that is not an Obligor in accordance with the terms of the Credit Agreement and this Guarantee or (b) the Payment
in Full of the Loans, the guarantees made herein shall automatically terminate with respect to (i) such Guarantor (in the case
of clause (a)) or (ii) all Guarantors (in the case of clause (b)).

 

SECTION
5.6. Additional Guarantors. Upon the execution and delivery by any other Person of a supplement in the form of Annex
I hereto, such Person shall become a “Guarantor” hereunder with the same force and effect as if it were originally
a party to this Guarantee and named as a “Guarantor” hereunder. The execution and delivery of such supplement shall
not require the consent of any other Guarantor hereunder, and the rights and obligations of each Guarantor hereunder shall remain
in full force and effect notwithstanding the addition of any new Guarantor as a party to this Guarantee.

 

    6

     

    

 

SECTION
5.7. No Waiver; Remedies. In addition to, and not in limitation of, Section 2.3 and Section 2.5, no failure
on the part of any Secured Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise
of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

 

SECTION
5.8. Further Assurances. Each Guarantor agrees, upon the written request of the Agent, to execute and deliver to the Secured
Parties, from time to time, any additional instruments or documents deemed to be reasonably necessary by the Agent or the Required
Lenders to cause this Guarantee to be, become or remain valid and effective in accordance with its terms.

 

SECTION
5.9. Section Captions. Section captions used in this Guarantee are for convenience of reference only and shall not affect
the construction of this Guarantee.

 

SECTION
5.10. Severability. Any provision of this Guarantee which is prohibited or unenforceable in any jurisdiction shall, as
to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating
the remaining provisions of this Guarantee or affecting the validity or enforceability of such provision in any other jurisdiction.

 

SECTION
5.11. Governing Law, Entire Agreement, Etc. THIS GUARANTEE AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER
IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS GUARANTEE OR ANY OTHER LOAN DOCUMENT CONTEMPLATED
HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH
PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Guarantee, along with the other
Loan Documents, constitutes the entire understanding among the parties hereto with respect to the subject matter hereof and supersedes
any prior agreements, written or oral, with respect hereto.

 

    7

     

    

 

SECTION
5.12. Forum Selection; Consent to Jurisdiction; Service of Process. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER,
OR IN CONNECTION WITH THIS GUARANTEE OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF
THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT ANY SUIT SEEKING
ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE AGENT’S OPTION (AT THE DIRECTION OF THE REQUIRED
LENDERS), IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH LOAN PARTY HEREBY EXPRESSLY
AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH LOAN PARTY FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF
NEW YORK. EACH LOAN PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY
CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

SECTION
5.13. Counterparts. This Guarantee may be executed by the parties hereto in several counterparts, each of which shall be
an original and all of which shall constitute together but one and the same agreement. This Guarantee shall become effective when
counterparts hereof executed on behalf of each Guarantor shall have been received by the Agent. Delivery of an executed counterpart
of a signature page to this Guarantee by email (e.g., “pdf” or “tiff”) or telecopy shall be effective
as delivery of a manually executed counterpart of this Guarantee.

 

SECTION
5.14. Waiver of Jury Trial. THE SECURED PARTIES BY ACCEPTANCE OF THIS GUARANTEE AND EACH GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTEE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE SECURED PARTIES OR ANY GUARANTOR IN CONNECTION HEREWITH. EACH GUARANTOR ACKNOWLEDGES
AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN
DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDERS AND THE AGENT TO ENTER INTO
THE LOAN DOCUMENTS.

 

[Signature
Page Follows]

 

    8

     

    

 

In
witness whereof, each Guarantor has caused this
Guarantee to be duly executed and delivered as of the date first above written.

 

	 	GUARANTORS:
	 	 
	 	WORKHORSE
    TECHNOLOGIES INC. 
	 	 	 
	 	By:
    	/s/
    Stephen S. Burns
	 	Name:
    	Stephen
    S. Burns
	 	Title:
    	CEO
	 	 	 
	 	WORKHORSE
    PROPERTIES INC. 
	 	 	 
	 	By:
    	/s/
    Stephen S. Burns
	 	Name:
    	Stephen
    S. Burns
	 	Title:
    	CEO
	 	 	 
	 	WORKHORSE
    MOTOR WORKS INC 
	 	 	 
	 	By:
    	/s/
    Stephen S. Burns
	 	Name:
    	Stephen
    S. Burns
	 	Title:
    	CEO
	 	 	 
	 	SUREFLY,
    INC. 
	 	 	 
	 	By:
    	/s/
    Duane A. Hughes
	 	Name:
    	Duane
    A. Hughes
	 	Title:
    	CEO

  

 

[Signature Page to Guarantee]

 

     

     

    

 

ANNEX
I

to Guarantee

 

SUPPLEMENT
TO

 

Guarantee

 

This
SUPPLEMENT, dated as of ____________ ___, _____ (this “Supplement”), is to the Guarantee, dated as of December
31, 2018 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Guarantee”),
by the Guarantors (such term, and other terms used in this Supplement, to have the meanings set forth in Article I of the Guarantee)
from time to time party thereto, in favor of the Secured Parties.

 

W i t n e s s e t h:

 

WHEREAS,
pursuant to a Credit Agreement, dated as of December 31, 2018 (as amended, supplemented, or otherwise modified from time to time,
the “Credit Agreement”), by and among Workhorse Group Inc., a Nevada corporation (the “Borrower”),
the Lenders and the Agent, the Lenders have extended Commitments to make the Loans to the Borrower; and

 

WHEREAS,
pursuant to the provisions of Section 5.6 of the Guarantee, each of the undersigned is becoming a Guarantor under the Guarantee;
and

 

WHEREAS,
each of the undersigned desires to become a “Guarantor” under the Guarantee in order to induce the Lenders to continue
to extend the Loans under the Credit Agreement;

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of the undersigned
agrees, for the benefit of the Secured Parties, as follows.

 

SECTION
1. Party to Guarantee, Etc. In accordance with the terms of this Guarantee, by its signature below, each of the undersigned
hereby irrevocably agrees to become a Guarantor under the Guarantee with the same force and effect as if it were an original signatory
thereto and each of the undersigned hereby (a) agrees to be bound by and comply with all of the terms and provisions of the Guarantee
applicable to it as a Guarantor and (b) represents and warrants that the representations and warranties made by it as a Guarantor
thereunder are true and correct in all material respects (without duplication of any materiality qualifier contained therein)
as of the date hereof, unless stated to relate solely to an earlier date, in which case such representations and warranties shall
be true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of such earlier
date. In furtherance of the foregoing, each reference to a “Guarantor” and/or “Guarantors” in the Guarantee
shall be deemed to include each of the undersigned.

 

    ANNEX I-1

     

    

 

SECTION
2. Representations. Each of the undersigned Guarantors hereby represents and warrants that this Supplement has been duly
authorized, executed and delivered by it and that this Supplement and the Guarantee constitute its legal, valid and binding obligation,
enforceable against it in accordance with its terms.

 

SECTION
3. Full Force of Guarantee. Except as expressly supplemented hereby, the Guarantee shall remain in full force and effect
in accordance with its terms.

 

SECTION
4. Severability. Wherever possible each provision of this Supplement shall be interpreted in such manner as to be effective
and valid under Applicable Law, but if any provision of this Supplement shall be prohibited by or invalid under such law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Supplement or the Guarantee.

 

SECTION
5. Governing Law, Entire Agreement, Etc. THIS SUPPLEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER
IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS GUARANTEE OR ANY DOCUMENT CONTEMPLATED HEREBY
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Supplement, along with the other Loan
Documents, constitutes the entire understanding among the parties hereto with respect to the subject matter thereof and supersedes
any prior agreements, written or oral, with respect thereto.

 

SECTION
6. Effective. This Supplement shall become effective when a counterpart hereof executed by the Guarantor shall have been
received by the Agent. Delivery of an executed counterpart of a signature page to this Supplement by email (e.g., “pdf”
or “tiff”) or telecopy shall be effective as delivery of a manually executed counterpart of this Supplement.

 

[Signature
Page Follows]

    ANNEX I-2

     

    

 

IN
WITNESS WHEREOF, each of the parties hereto has caused this Supplement to be duly executed and delivered by its Authorized Officer
as of the date first above written.

 

	 	[NAME
    OF ADDITIONAL GUARANTOR]   
	 	 	 
	 	By:	 
	 	 	Name:
    
	 	 	Title:

	 	[NAME
    OF ADDITIONAL GUARANTOR]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

[Signature
Page to Guarantee Supplement]Exhibit 10.5

 

Execution
Version

  

REGISTRATION
RIGHTS AGREEMENT

  

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of December 31, 2018, is entered into by and between
Workhorse Group Inc., a Nevada corporation (the “Company”), Marathon Structured Product Strategies Fund, LP,
a Delaware limited partnership (“Structured Product”), Marathon Blue Grass Credit Fund, LP, a Delaware limited
partnership (“Blue Grass”), Marathon Centre Street Partnership, L.P., a Delaware limited partnership (“Centre
Street”), and TRS Credit Fund, LP, a Delaware limited partnership (“TRS” and collectively with Structured
Product, Blue Grass and Centre Street, the “Initial Holders”).

 

R
 E  C  I  T  A  L  S

 

WHEREAS,
on or about the date hereof, the Company issued to each Initial Holder a certain Common Stock Purchase Warrant (such warrants
collectively, the “Warrants”), pursuant to which, among other things, such Initial Holder is entitled, subject
to the terms and conditions set forth therein, to purchase from the Company shares of common stock, $0.001 par value per share,
of the Company (the “Company Common Stock”); and

 

WHEREAS,
the Company has agreed to provide the Initial Holders with the registration rights specified in this Agreement with respect to
Registrable Securities (as defined herein), on the terms and subject to the conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
1

DEFINITIONS

 

1.1
Definitions. The following terms shall have the meanings set forth in this Section 1.1:

 

“Additional
Warrant Securities” means any additional warrants issued to any Holder in accordance with Section 7 of each respective
Warrant.

 

“Adverse
Effect” has the meaning given such term in Section 2.1.5 herein.

 

“Advice”
has the meaning given such term in Section 2.6 herein.

 

“Affiliate”
means with respect to a party hereto, any Person that, directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with such party. For purposes of this definition, “control” and, with
correlative meanings, the terms “controlled by” and “under common control with” as used
with respect to a Person means (a) the possession, directly or indirectly, of the power to direct, or cause the direction
of, the management or policies of such Person, whether through the ownership of voting securities, by contract relating to voting
rights or corporate governance, or otherwise, or (b) the ownership, directly or indirectly, of more than 50% of the voting
securities or other ownership interest of a Person.

 

     

     

    

 

“Agreement”
has the meaning given such term in the introductory paragraph of this Agreement.

 

“Block
Sale” means the sale of shares of Company Common Stock to one of several purchasers in a registered transaction by means
of a bought deal, a block trade or a direct sale.

 

“Blue
Grass” has the meaning given such term in the introductory paragraph of this Agreement.

 

“Business
Days” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to
be closed in New York City.

 

“Centre
Street” has the meaning given such term in the introductory paragraph of this Agreement.

 

“Company”
has the meaning given such term in the introductory paragraph of this Agreement and includes the Company’s successors by
merger, acquisition, reorganization or otherwise.

 

“Company
Common Stock” has the meaning given such term in the recitals of this Agreement.

 

“Company
Indemnified Person” has the meaning given such term in Section 2.8.2 herein.

 

“Demand
Registration” has the meaning given such term in Section 2.2.1(a) herein.

 

“Demand
Request” has the meaning given such term in Section 2.2.1(a) herein.

 

“Demanding
Shareholders” has the meaning given such term in Section 2.2.1(a) herein.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations
promulgated by the SEC thereunder.

 

“Excluded
Registration” means a registration under the Securities Act (i) of Registrable Securities pursuant to one or more Demand
Registrations pursuant to Section 2 hereof, (ii) of equity securities issuable in connection with the Company’s stock
option or other employee benefit plans registered on Form S-8 or any similar successor form, (iii) of equity securities registered
to effect the acquisition of, or combination with, another Person on Form S-4 or any similar successor form, (iv) relating solely
to the sale of non-convertible debt instruments and (v) of securities registered in connection with any dividend reinvestment
plan.

 

“Existing
Registration Rights Holders” refers to those individuals or entities possessing registration rights prior to the date
hereof, which consist of Arosa Capital Management LP.

 

“FINRA”
has the meaning given such term in Section 2.5(xvi) herein.

 

     2

     

    

 

“Holder”
means (i) any Initial Holder and (ii) any direct or indirect transferee of any Initial Holder who shall become a party to this
Agreement in accordance with Section 2.9 and has agreed in writing to be bound by the terms of this Agreement.

 

“Initial
Holders” has the meaning given such term in the introductory paragraph of this Agreement.

 

“Inspectors”
has the meaning given such term in Section 2.5(xii) herein.

 

“Losses”
has the meaning given such term in Section 2.8.1 herein.

 

“Marketed
Underwritten Offering” has the meaning given such term in Section 2.1.3 herein.

 

“Permitted
Transferee” has the meaning given such term in Section 2.9 herein.

 

“Person”
or “person” means any individual, corporation, partnership, limited liability company, joint venture, association,
joint-stock company, trust, unincorporated organization or government or other agency or political subdivision thereof.

 

“Piggyback
Registration” has the meaning given such term in Section 2.3.1 herein.

 

“Records”
has the meaning given such term in Section 2.5(xii) herein.

 

“register,”
“registered” and “registration” refer to a registration effected by preparing and filing
a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration
statement under the Securities Act (to the extent such declaration or order is required in order for such registration statement
to become effective).

 

“Registrable
Securities” means any shares of Company Common Stock issuable or issued upon the exercise of any Warrant and any shares
of Company Common Stock issuable or issued upon the exercise of any Additional Warrant Securities; provided, however,
that Registrable Securities shall not include shares of Company Common Stock (a) when a registration statement with respect to
the sale of such shares of Company Common Stock has become effective under the Securities Act and such shares of Company Common
Stock have been disposed of in accordance with such registration statement; (b) that have been sold to the public pursuant to
Rule 144 or other exemption from registration under the Securities Act; (c) that have been otherwise transferred, new certificates
for them not bearing a legend restricting further transfer shall have been delivered by the Company and subsequent public distribution
of them shall not require registration or qualification of them under the Securities Act or any similar state law then in force;
(d) as to which the Company has delivered an opinion of counsel reasonably satisfactory to the transfer agent for the Company
Common Stock to the effect that such Registrable Securities are able to be sold by the Holders without restriction as to volume
or manner of sale pursuant to Rule 144; (e) that are otherwise sold or transferred by a Holder in a transaction where its rights
under this Agreement are not assigned; or (f) that have ceased to be outstanding.

 

“Requesting
Holders” shall mean any Holder(s) requesting to have its (their) Registrable Securities included in any Demand Registration
or Shelf Registration.

 

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“Required
Filing Date” has the meaning given such term in Section 2.2.1(b) herein.

 

“Rule
144” means Rule 144 under the Securities Act or any successor rule thereto.

 

“SEC”
means the United States Securities and Exchange Commission or any other federal agency at the time administering the Securities
Act.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations promulgated
by the SEC thereunder.

 

“Seller
Affiliates” has the meaning given such term in Section 2.8.1 herein.

 

“Shelf
Registration Statement” has the meaning given such term in Section 2.1.1 herein.

 

“Shelf
Takedown” has the meaning given such term in Section 2.2.2(b) herein.

 

“Structured
Product” has the meaning given such term in the introductory paragraph of this Agreement.

 

“Suspension
Notice” has the meaning given such term in Section 2.6 herein.

 

“TRS”
has the meaning given such term in the introductory paragraph of this Agreement.

 

“Underwritten
Offering” shall mean an offering registered under the Securities Act in which securities of the Company are sold to
one or more underwriters on a firm-commitment basis for reoffering to the public.

 

“Warrants”
has the meaning given such term in the recitals of this Agreement.

 

1.2
Rules of Construction. Unless the context otherwise requires:

 

		(1)	a
term has the meaning assigned to it;

 

		(2)	“or”
is not exclusive;

 

	 	(3)	words
    in the singular include the plural, and words in the plural include the singular;

 

	 	(4)	whenever
    the masculine is used in this Agreement, the same shall include the feminine and whenever the feminine is used herein, the
    same shall include the masculine, where appropriate;

 

		(5)	provisions
apply to successive events and transactions; and

 

	 	(6)	“herein,”
    “hereof” and other words of similar import refer to this Agreement as a whole and not to any particular
    Article, Section or other subdivision.

 

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ARTICLE
2

REGISTRATION RIGHTS

 

2.1
Shelf Registration.

 

2.1.1
Registration Requirement. The Company shall prepare and file a resale registration statement on Form S-3 under the Securities
Act (it being agreed that such registration statement shall be a registration statement filed for an offering to be made on a
delayed or continuous basis pursuant to Rule 415 (or any successor rule), including any post-effective amendment thereto, if then
available to the Company, and if such Form S-3 is not then available to the Company, such resale registration statement shall
be on Form S-1 or any similar or successor to such form under the Securities Act (the registration statement filed pursuant to
this Section 2.1.1 being referred to as a “Shelf Registration Statement”)) for the resale of all or part of
its or their Registrable Securities as promptly as practicable after the date hereof, but in no event more than 90 days after
the date hereof.

 

2.1.2
Effectiveness of the Registration Statement. The Company shall use its best efforts to cause the Shelf Registration Statement
to be declared effective by the SEC staff no later than 180 days after the date hereof. Thereafter, the Company shall use its
best efforts to keep such Shelf Registration Statement continuously effective, including by filing any necessary post-effective
amendments to such Shelf Registration Statement or a new Shelf Registration Statement, until the earlier of (x) the date on which
all Registrable Securities have been sold pursuant to such Shelf Registration Statement or another Shelf Registration Statement
filed under the Securities Act (but in no event prior to the applicable period referred to in Section 4(a)(3) of the Securities
Act and Rule 174 thereunder) and (y) such time as the Registrable Securities are no longer outstanding or otherwise no longer
constitute Registrable Securities. A Holder shall provide notice to the Company prior to any use of the Shelf Registration Statement
by such Holder, and shall provide the information required by, and comply with the obligations under, Section 2.6 following
the receipt of a Suspension Notice. Further, each Holder agrees to complete and execute all questionnaires and other documents
reasonably required by the Company in order to prepare and file any Shelf Registration Statement.

 

2.1.3
Shelf Takedowns.

 

(a)
Subject to the provisions of Section 2.1.3(b) hereof, any Holder or Holders of Registrable Securities shall be entitled,
at any time and from time to time when a Shelf Registration Statement is effective, to sell such Registrable Securities held by
such Holder or Holders as are then registered pursuant to a Shelf Registration Statement (each, a “Shelf Takedown”).
The number of Shelf Takedowns that such Holder or Holders may effect pursuant to this Section 2.1.3 shall not be limited,
provided, that the number of offerings where the plan of distribution contemplates a customary “road show”
(including an “electronic road show”) or other substantial marketing effort of by the Company and the underwriters
( any such Underwritten Offering, a “Marketed Underwritten Offering”) that may be effected hereunder shall
be limited to a total of three (less any Demand Requests pursuant to Section 2.2.1), and such other restriction as may
be set forth in Section 2.1.3(b) are complied with. Any such Shelf Takedown may be made in the United States by and pursuant
to any method or combination of methods legally available to any Holder or Holders of Registrable Securities (including, but not
limited to, an Underwritten Offering, a direct sale to purchasers, a sale to or through brokers, dealers or agents, a sale over
the internet, Block Sales, derivative transactions with third parties, sales in connection with short sales and other hedging
transactions). The Company shall comply with the applicable provisions of the Securities Act with respect to the disposition of
all Registrable Securities covered by the Shelf Registration Statement in accordance with the intended methods of disposition
by the Holder or Holders of Registrable Securities. If any Holder intends to sell any Registrable Securities pursuant to a Shelf
Takedown, such Holder shall give the Company written notice of the consummation of each Shelf Takedown (whether or not such Shelf
Takedown constitutes an Underwritten Offering) reasonably promptly after the consummation thereof.

 

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(b)
Upon receipt of prior written notice by any Holder or Holders of Registrable Securities that it intends to effect a Shelf Takedown,
the Company shall use its reasonable best efforts to cooperate in such Shelf Takedown, whether or not such Shelf Takedown constitutes
an Underwritten Offering, by amending or supplementing the prospectus related to such Shelf Registration Statement as may be reasonably
requested by such Holder or Holders for so long as such Holder or Holders holds Registrable Securities; provided, that
the Company shall not be obligated to cooperate in an Underwritten Offering to be effected by means of a Block Sale if notice
of such Underwritten Offering has not been delivered to the Company at least five Business Days prior to the intended launch of
such Block Sale.

 

2.1.4
Selection of Underwriters. At the request of a majority of the Holders, the offering of Registrable Securities pursuant
to a Shelf Takedown, shall be in the form of a “firm commitment” Underwritten Offering. In the case of an Underwritten
Offering, a majority of such Holders shall select the investment banking firm or firms to manage the Underwritten Offering; provided,
that such selection shall be subject to the prior consent of the Company, which consent shall not be unreasonably withheld, conditioned
or delayed. No Holder may participate in any such Underwritten Offering unless such Holder (x) agrees to sell such Holder’s
Registrable Securities on the basis provided in any underwriting arrangements described above and (y) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms
of such underwriting arrangements; provided, however, that any such Holder’s representations and warranties
in connection with any such registration shall be substantially consistent in substance and scope with those that are customarily
made by selling securityholders to underwriters and issuers in underwritten offerings; provided, further, however,
that the obligation of such Holder to indemnify pursuant to any such underwriting arrangements shall be several, not joint and
several, among such Holders selling Registrable Securities, and the liability of each such Holder will be in proportion thereto;
provided, further, that such liability will be limited to the net amount received by such Holder from the sale of
such Holder’s Registrable Securities pursuant to such Underwritten Offering.

 

2.1.5
Priority on Shelf Takedowns. No securities to be sold for the account of any Person (including the Company) other than
any Existing Registration Rights Holders shall be included in a Shelf Takedown unless the managing underwriter or underwriters
shall advise that the inclusion of such securities will not adversely affect the price or success of the offering (an “Adverse
Effect”). Furthermore, if the managing underwriter or underwriters shall advise that, even after exclusion of all securities
of other Persons pursuant to the immediately preceding sentence, the amount of securities proposed to be included in such Shelf
Takedown by the Existing Registration Rights Holders is sufficiently large to cause an Adverse Effect, the number of securities
to be included in such Shelf Takedown shall equal the number of shares that can be sold in such offering without an Adverse Effect,
allocated as follows: (i) first, the securities requested to be included in such offering by the Existing Registration Rights
Holders and (ii) second, the Registrable Securities requested to be included in such offering by the Holders (and such shares
shall be allocated pro rata among the Holders on the basis of the number of Registrable Securities requested to be included
in such registration by each such Holder).

 

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2.1.6
Deferral of Filing. If the filing, initial effectiveness or continued use of a Registration Statement, including a Shelf
Registration Statement, filed hereunder would require the Company to make a public disclosure of material non-public information,
which disclosure in the good-faith judgment of the Company based on the advice of counsel (i) would be required to be made in
any registration statement so that such registration statement would not be materially misleading, (ii) would not be required
to be made at such time but for the filing, effectiveness or continued use of such registration statement or (iii) would reasonably
be expected to adversely affect in any material respect the Company or its business or the Company’s ability to effect a
bona fide material proposed acquisition, disposition, financing, reorganization, recapitalization or similar transaction,
then the Company may, upon giving prompt written notice of such action to the Holders, delay the filing or initial effectiveness
of, or suspend use of, such Registration Statement; provided that the Company shall not be permitted to do so (x) more
than once in any six-month period or (y) for any single period of time in excess of 90 days, or for periods exceeding, in the
aggregate, 90 days during any 12-month period. In the event that the Company exercises its rights under the preceding sentence,
the Holders agree to suspend, promptly upon receipt of the notice referred to above, the use of any prospectus relating to such
registration in connection with any sale or offer to sell Registrable Securities. In order to defer the filing of a registration
statement pursuant to this Section 2.1.6, the Company shall promptly (but in any event within 10 days), upon determining
to seek such deferral, deliver to each Requesting Holder a certificate signed by an executive officer of the Company stating that
the Company is deferring such filing pursuant to this Section 2.1.6 and a statement of the reason for such deferral and
an approximation of the anticipated delay.

 

2.1.7
Form S-3. The Company shall use its reasonable best efforts to cause the Shelf Registration Statement to be registered
on Form S-3 (or any successor form), and if the Company is not then eligible under the Securities Act to use Form S-3, such Shelf
Registration Statement shall be registered on the form for which the Company then qualifies.

 

2.2
Demand Registration.

 

2.2.1
Request for Registration.

 

(a)
If the Company is unable to file, cause to become effective or maintain the effectiveness of a Shelf Registration Statement as
required under Section 2.1, or at any time after the issuance of any Additional Warrant Securities, the Holder shall have
the right to require the Company to, pursuant to the terms of this Agreement, register under and in accordance with the provisions
of the Securities Act all or part of its or their Registrable Securities (a “Demand Registration”), by delivering
to the Company written notice stating that such right is being exercised, naming, if applicable, the Holders whose Registrable
Securities are to be included in such registration (collectively, the “Demanding Shareholders”), specifying
the number of each such Demanding Shareholder’s Registrable Securities to be included in such registration and, subject
to Section 2.2.3 hereof, describing the intended method of distribution thereof (a “Demand Request”).

 

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(b)
Subject to this Section 2.2.1 and Section 2.2.5, the Company shall file a registration statement in respect of a
Demand Registration as soon as reasonably practicable and, in any event, within 30 days after receiving a Demand Request (the
“Required Filing Date”) and shall use reasonable best efforts to cause the same to be declared effective by
the SEC as promptly as reasonably practicable after such filing; provided, however, that the Company shall not be
obligated to effect:

 

(i)
a Demand Registration pursuant to Section 2.2.1(a) within 90 days after the effective date of a previous Demand Registration
or any previous registration statement in which the Holder or Holders of Registrable Securities was given piggyback rights pursuant
to Section 2.3 in which there was no reduction in the number of Registrable Securities to be included, and in each case
in which the sale of Registered Securities was consummated; and

 

(ii)
any Demand Registration if a Shelf Registration Statement is then effective, and such Shelf Registration Statement may be utilized
by the Holder or Holders of Registrable Securities for the resale of Registrable Securities, including through an Underwritten
Offering, without a requirement under the SEC’s rules and regulations for a post-effective amendment thereto.

 

Notwithstanding
the foregoing, the Company shall not be obligated to effect, in total, more than four Demand Registrations (less the number of
any Shelf Takedowns constituting an Underwritten Offering), which may consist of (a) no more than three Demand Registrations where
the plan of distribution contemplates a Marketed Underwritten Offering, less the number of any Shelf Takedowns constituting a
Marketed Underwritten Offering and (b) no more than two Demand Registrations (less the number of any Shelf Takedowns constituting
an Underwritten Offering) during any 12-month period.

 

(c)
Each Holder requesting a Demand Registration agrees to complete and execute all questionnaires and other documents reasonably
required by the Company in order to prepare and file any Shelf Registration Statement.

 

2.2.2
Selection of Underwriters. At the request of a majority of the Requesting Holders, the offering of Registrable Securities
pursuant to a Demand Registration, shall be in the form of a “firm commitment” Underwritten Offering. In the case
of an Underwritten Offering, a majority of the Requesting Holders shall select the investment banking firm or firms to manage
the Underwritten Offering; provided, that such selection shall be subject to the prior consent of the Company, which consent
shall not be unreasonably withheld, conditioned or delayed. No Holder may participate in any such Underwritten Offering unless
such Holder (x) agrees to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements
described above and (y) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting arrangements; provided, however, that any
such Holder’s representations and warranties in connection with any such registration shall be substantially consistent
in substance and scope with those that are customarily made by selling securityholders to underwriters and issuers in underwritten
offerings; provided, further, however, that the obligation of such Holder to indemnify pursuant to any such
underwriting arrangements shall be several, not joint and several, among such Holders selling Registrable Securities, and the
liability of each such Holder will be in proportion thereto; provided, further, that such liability will be limited
to the net amount received by such Holder from the sale of such Holder’s Registrable Securities pursuant to such Underwritten
Offering.

 

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2.2.3
Rights of Nonrequesting Holders. Upon receipt of any Demand Request, the Company shall promptly (but in any event within
10 days) give written notice of such proposed Demand Registration to all other Holders (if any), who shall have the right, exercisable
by written notice to the Company within 15 days of their receipt of the Company’s notice, to elect to include in such Demand
Registration such portion of their Registrable Securities as they may request. All Holders requesting to have their Registrable
Securities included in a Demand Registration in accordance with the preceding sentence shall be deemed to be “Requesting
Holders” for purposes of this Section 2.2.

 

2.2.4
Priority on Demand Registrations. No securities to be sold for the account of any Person (including the Company) other
than any Requesting Holder or any Existing Registration Rights Holders shall be included in a Demand Registration unless the managing
underwriter or underwriters shall advise such Requesting Holder (or, in the case of a Demand Registration that is not an Underwritten
Offering, such Requesting Holder determines in good faith after considering the relevant facts and circumstances at the relevant
time) that the inclusion of such securities will not cause an Adverse Effect. Furthermore, if the managing underwriter or underwriters
shall advise the Requesting Holder (or such Requesting Holder determines, as applicable, in good faith after considering the relevant
facts and circumstances at the relevant time) that, even after exclusion of all securities of other Persons pursuant to the immediately
preceding sentence, the amount of securities proposed to be included in such Demand Registration by the Requesting Holders and
the Existing Registration Rights Holders is sufficiently large to cause an Adverse Effect, the number of securities to be included
in such Demand Registration shall equal the number of shares which the Requesting Holder is so advised can be sold in such offering
without an Adverse Effect, allocated as follows: (i) first, the securities requested to be included in such offering by the Existing
Registration Rights Holders and (ii) second, the Registrable Securities requested to be included in such offering by the Requesting
Holders (and such shares shall be allocated pro rata among the Requesting Holders on the basis of the number of Registrable
Securities requested to be included in such registration by each such Requesting Holder).

 

2.2.5
Deferral of Filing. With respect to any Demand Registration, the obligation of the Company to file, accelerate the initial
effectiveness or continue the effectiveness of a regisstration statement shall be limited to the extent set forth in Section
2.1.6. If the Company so postpones the filing of a prospectus or the effectiveness of a registration statement with respect
to a Demand Registration for the reasons set forth in Section 2.1.6, the Holders shall be entitled to withdraw such request
and, if such request is withdrawn, such registration request shall not count for the purposes of the limitations set forth in
Section 2.2. The Company shall promptly give the Holders requesting registration thereof pursuant to this Section 2
written notice of any postponement made in accordance with the preceding sentence. A deferral of the filing of a registration
statement pursuant to this Section 2.2.5 shall be lifted, and the requested registration statement shall be filed forthwith.
In order to defer the filing of a registration statement pursuant to this Section 2.2.5, the Company shall promptly (but
in any event within 10 days), upon determining to seek such deferral, deliver to each Requesting Holder a certificate signed by
an executive officer of the Company stating that the Company is deferring such filing pursuant to this Section 2.2.5 and
a statement of the reason for such deferral and an approximation of the anticipated delay. Within 20 days after receiving such
certificate, the holders of a majority of the Registrable Securities held by the Requesting Holders and for which registration
was previously requested may withdraw such Demand Request by giving notice to the Company; if withdrawn, the Demand Request shall
be deemed not to have been made for all purposes of this Agreement.

 

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2.2.6
Form S-3. The Company shall use its reasonable best efforts to cause Demand Registrations to be registered on Form S-3
(or any successor form), and if the Company is not then eligible under the Securities Act to use Form S-3, Demand Registrations
shall be registered on the form for which the Company then qualifies.

 

2.3
Piggyback Registrations.

 

2.3.1
Right to Piggyback. Each time the Company proposes to register any of its equity securities (other than pursuant to an
Excluded Registration) under the Securities Act for sale to the public (whether for the account of the Company or the account
of any securityholder of the Company) (a “Piggyback Registration”), the Company shall give prompt written notice
to each Holder of Registrable Securities (which notice shall be given not less than 10 days prior to the anticipated filing date
of the Company’s registration statement), which notice shall offer each such Holder the opportunity to include any or all
of such Holder’s Registrable Securities in such registration statement on the same terms and conditions as the same class
of securities otherwise being sold pursuant to such registration statement, subject to the limitations contained in Section
2.3.2 hereof. Each Holder who desires to have such Holder’s Registrable Securities included in such registration statement
shall so advise the Company in writing (stating the number of shares desired to be registered) within five days after the date
of such notice from the Company. Any Holder shall have the right to withdraw such Holder’s request for inclusion of such
Holder’s Registrable Securities in any registration statement pursuant to this Section 2.3.1 by giving written notice
to the Company of such withdrawal on or before the fifth day prior to the planned effective date of such Piggyback Registration.
Subject to Section 2.3.2 below, the Company shall include in such registration statement all such Registrable Securities
so requested to be included therein; provided, however, that the Company may at any time, in its sole discretion
and without the consent of the Holders, delay, withdraw or cease proceeding with any such registration if it shall at the same
time withdraw or cease proceeding with the registration of all other equity securities originally proposed to be registered and
will have no liability to the Holder in connection with such termination or withdrawal, except for the obligation to pay any registration
expenses pursuant to Section 2.7.2.

 

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2.3.2
Priority on Piggyback Registrations.

 

(a)
If a Piggyback Registration is an Underwritten Offering and was initiated by the Company, and if the managing underwriter (or
in the case of a Piggyback Registration that is not an Underwritten Offering, the Company, in good faith) advises the Company
that the inclusion of Registrable Securities requested to be included in the Registration Statement would cause an Adverse Effect,
the Company shall include in such registration statement (i) first, the securities of the Existing Registration Rights Holders
requested to be included in such registration, (ii) second, the securities the Company proposes to sell, (iii) third, the Registrable
Securities of any Holder requested to be included in such registration, pro rata among the Holders of such Registrable
Securities on the basis of the number of Registrable Securities owned by each such Holder and (iv) fourth, any other securities
requested to be included in such registration; provided, that if such other securities have been requested to be included
pursuant to a registration rights agreement, then such securities would be included as set forth in (iii) above as if they were
Registrable Securities of a Holder. If, as a result of the provisions of this Section 2.3.2(a), any Holder shall not be
entitled to include all Registrable Securities in a registration that such Holder has requested to be so included, such Holder
may withdraw such Holder’s request to include Registrable Securities in such registration statement on or before the fifth
day prior to the planned effective date of such Piggyback Registration.

 

(b)
If a Piggyback Registration is an Underwritten Offering and was initiated by a securityholder of the Company, and if the managing
underwriter (or in the case of a Piggyback Registration that is not an Underwritten Offering, the Company, in good faith) advises
the Company that the inclusion of Registrable Securities requested to be included in the Registration Statement would cause an
Adverse Effect, the Company shall include in such registration statement (i) first, the securities of the Existing Registration
Rights Holders requested to be included in such registration, (ii) second, the securities requested to be included therein by
the securityholders requesting such registration, (iii) third, the Registrable Securities requested to be included in such registration
by any Holder, pro rata among the Holders on the basis of the number of Registrable Securities owned by each such Holder
and (iv) fourth, any other securities requested to be included in such registration (including securities to be sold for the account
of the Company). If, as a result of the provisions of this Section 2.3.2(b), any Holder shall not be entitled to include
all Registrable Securities in a registration that such Holder has requested to be so included, such Holder may withdraw such Holder’s
request to include Registrable Securities in such registration statement on or before the fifth day prior to the planned effective
date of such Piggyback Registration.

 

(c)
No Holder may participate in any registration statement in respect of a Piggyback Registration hereunder unless such Holder (x)
agrees to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements approved by the
Company, in the case of an Underwritten Offering and (y) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents, each in customary form, reasonably required under the terms of such underwriting
arrangements; provided, however, that any such Holder’s representations and warranties in connection with
any such registration shall be of a substance and scope as are customarily made by selling securityholders to underwriters and
issuers in underwritten offerings; provided, further, however, that the obligation of such Holder to indemnify
pursuant to any such underwriting arrangements shall be several, not joint and several, among such Holders selling Registrable
Securities, and the liability of each such Holder will be in proportion thereto; provided, further, that such liability
will be limited to the net amount received by such Holder from the sale of such Holder’s Registrable Securities pursuant
to such registration.

 

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2.4
Holdback Agreements.

 

(a)
In the case of any Underwritten Offering by any Holder hereunder, the Company shall not effect any public sale or distribution
of its equity securities, or any securities convertible into or exchangeable or exercisable for such securities, during the seven
days prior to and during the 90-day period beginning on the effective date of any registration statement filed in connection with
such Underwritten Offering or, in the case of an Underwritten Offering pursuant to a Shelf Takedown, the filing of any prospectus
relating to the offer and sale of Registrable Securities (or, in either case, such shorter period that any lock-up period with
respect to such Underwritten Offering is in effect), except (i) pursuant to any registrations on Form S-4 or Form S-8 or any successor
form, (ii) pursuant to any registrations filed in connection with an exchange offer or any employee benefit or dividend reinvestment
plan or (iii) unless the underwriters managing any such Underwritten Offering otherwise agree. The underwriters in connection
with such Underwritten Offering are intended third-party beneficiaries of this Section 2.4(a) and shall have the right
and power to enforce the provisions hereof as though they were a party thereto.

 

(b)
Each Holder agrees, in the event of an Underwritten Offering by the Company (whether for the account of the Company or otherwise),
not to offer, sell, contract to sell or otherwise dispose of any Registrable Securities, or any securities convertible into or
exchangeable or exercisable for such securities, including any sale pursuant to Rule 144 (except as part of such Underwritten
Offering), during the seven days prior to, and during the 90-day period beginning on, the effective date of the registration statement
for such Underwritten Offering (or, in the case of an offering pursuant to an effective shelf registration statement pursuant
to Rule 415, the pricing date for such Underwritten Offering) (or, in either case, such shorter period that any lock-up period
with respect to such Underwritten Offering is in effect). The underwriters in connection with such Underwritten Offering are intended
third-party beneficiaries of this Section 2.4(b) and shall have the right and power to enforce the provisions hereof as
though they were a party thereto.

 

2.5
Registration Procedures. If and whenever any Holder has requested that any Registrable Securities be registered pursuant
to this Agreement, the Company will use its reasonable best efforts to effect the registration and the sale of such Registrable
Securities in accordance with the intended method of disposition thereof as promptly as is reasonably practicable, and pursuant
thereto the Company will as expeditiously as possible:

 

(i)
prepare and file with the SEC, pursuant to Section 2.2.1(b) with respect to any Demand Registration, a registration statement
on any appropriate form under the Securities Act with respect to such Registrable Securities and use its reasonable best efforts
to cause such registration statement to become effective; provided, that as far in advance as practicable before filing
such registration statement or any amendment thereto, the Company will furnish to the selling Holders copies of reasonably complete
drafts of all such documents prepared to be filed (including exhibits), and any such Holder shall have the opportunity to review
and reasonably object, as promptly as is reasonably practicable, to any information contained therein and the Company will make
corrections reasonably requested by such Holder with respect to such information prior to filing any such registration statement
or amendment; provided, that the Company shall not have any obligation to modify any information if the Company reasonably
believes in good faith that so doing would cause (i) the registration statement to contain an untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading or
(ii) the prospectus to contain an untrue statement of a material fact or to omit to state a material fact necessary in order to
make the statements made, in light of the circumstances under which they were made, not misleading;

 

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(ii)
except in the case of a Shelf Registration Statement, prepare and file with the SEC such amendments, post-effective amendments,
and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period of not less than 180 days (or such lesser period as is necessary for the underwriters
in an underwritten offering to sell unsold allotments) and comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such registration statement during such period in accordance with the intended methods
of disposition by the sellers thereof set forth in such registration statement;

 

(iii)
in the case of a Shelf Registration Statement, prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and
to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities subject thereto
for a period ending on the earlier of (x) 24 months after the effective date of such registration statement, (y) the date when
all restrictive legends on the Registrable Securities have been removed or (z) the date on which all the Registrable Securities
held by any Holder cease to be Registrable Securities;

 

(iv)
furnish to each seller of Registrable Securities and the underwriters of any Underwritten Offering, such number of copies of such
registration statement, each amendment and supplement thereto, the prospectus included in such registration statement (including
each preliminary prospectus), any prospectus supplement, any documents incorporated by reference therein and such other documents
as such seller or underwriters may reasonably request for purposes of permitting such seller’s or underwriters’ review
in order to facilitate the disposition of the Registrable Securities owned by such seller or the sale of such securities by such
underwriters (it being understood that, subject to Section 2.6 and the requirements of the Securities Act and applicable
state securities laws, the Company consents to the use of the prospectus and any amendment or supplement thereto by each seller
and the underwriters in connection with any Underwritten Offering covered by the registration statement of which such prospectus,
amendment or supplement is a part);

 

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(v)
use its reasonable best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws
of such jurisdictions in the United States as the managing underwriter reasonably requests (or, in the event the registration
statement does not relate to an Underwritten Offering, as the holders of a majority of such Registrable Securities may reasonably
request); use its reasonable best efforts to keep each such registration or qualification (or exemption therefrom) effective during
the period in which such registration statement is required to be kept effective and to take any other action that may be reasonably
necessary or advisable to enable each seller to consummate the disposition of the Registrable Securities owned by such seller
in such jurisdictions (provided, however, that the Company will not be required to (A) qualify generally to do business
in any jurisdiction where it would not otherwise be required to qualify but for this subparagraph, (B) subject itself to taxation
in any jurisdiction wherein it is not so subject or (C) take any action that would subject it to general service of process in
any jurisdiction where it is not then so subject);

 

(vi)
promptly notify each seller and each underwriter of any Underwritten Offering and (if requested by any such Person) confirm such
notice in writing (A) when a prospectus or any prospectus supplement or post-effective amendment has been filed and, with respect
to a registration statement or any post-effective amendment, when the same has become effective, (B) of the issuance by any state
securities or other regulatory authority of any order suspending the qualification or exemption from qualification of any of the
Registrable Securities under state securities or “blue sky” laws or the initiation of any proceedings for that purpose,
and (C) of the happening of any event which makes any material statement made in a registration statement or related prospectus
untrue or which requires the making of any material changes in such registration statement, prospectus or documents so that they
will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading, and, as promptly as practicable thereafter, prepare and file with the SEC and furnish
a supplement or amendment to such prospectus so that, as thereafter deliverable to the purchasers of such Registrable Securities,
such prospectus will not contain any untrue statement of a material fact or omit a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading;

 

(vii)
permit any selling Holder, which in such Holder’s judgment, based on the advice of counsel, might reasonably be deemed to
be an underwriter or a controlling person of the Company, to participate in the preparation of such registration or comparable
statement, to the extent necessary, and to require the insertion therein of material, furnished to the Company in writing, which
in the reasonable judgment of such Holder and its counsel should be included; provided, that the Company shall not have
any obligation to include such information if the Company reasonably believes in good faith that so doing would cause (i) the
registration statement to contain an untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading or (ii) the prospectus to contain an untrue statement of a
material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances
under which they were made, not misleading;

 

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(viii)
in the case of any Underwritten Offering, make reasonably available members of management of the Company, as selected by the Holders
of a majority of the Registrable Securities included in such registration, for assistance in the selling effort relating to the
Registrable Securities covered by such registration, including, but not limited to, the participation of such members of the Company’s
management in road show presentations as the underwriters reasonably request; provided, that the underwriter shall take
into account the reasonable business requirements of the Company in determining the scheduling and duration of any road show;

 

(ix)
otherwise use its reasonable best efforts to comply with the Securities Act, the Exchange Act and all other applicable rules and
regulations of the SEC, and make generally available to the Company’s securityholders an earnings statement satisfying the
provisions of Section 11(a) of the Securities Act no later than 45 days after the end of the 12-month period beginning with the
first day of the Company’s first fiscal quarter commencing after the effective date of a registration statement, which earnings
statement shall cover said 12-month period, and which requirement will be deemed to be satisfied if the Company timely files complete
and accurate information on Forms 10-Q, 10-K and 8-K under the Exchange Act and otherwise complies with Rule 158 under the Securities
Act;

 

(x)
if requested by the managing underwriter of any Underwritten Offering or any seller, promptly incorporate in a prospectus supplement
or post-effective amendment such information as the managing underwriter or such seller reasonably requests to be included therein,
including, without limitation, with respect to the Registrable Securities being sold by such seller, the purchase price being
paid therefor by the underwriters and with respect to any other terms of the underwritten offering of the Registrable Securities
to be sold in such offering, and promptly make all required filings of such prospectus supplement or post-effective amendment;

 

(xi)
cooperate with the seller and the managing underwriter of any Underwritten Offering to facilitate the timely preparation and delivery
of certificates (which shall not bear any restrictive legends unless required under applicable law) representing securities sold
under any registration statement, and enable such securities to be in such denominations and registered in such names as the managing
underwriter or such sellers may request as promptly as reasonably practicable prior to any sale of Registrable Securities and
keep available and make available to the Company’s transfer agent prior to the effectiveness of such registration statement
a supply of such certificates;

 

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(xii)
in the case of an Underwritten Offering, upon reasonable notice and during normal business hours, make reasonably available for
inspection by any seller, any underwriter participating in any disposition pursuant to any registration statement, and any attorney,
accountant or other agent or representative retained by any such seller or underwriter (collectively, the “Inspectors”),
relevant financial and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”),
as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company’s
officers, directors and employees to supply information reasonably requested by any such Inspector in connection with such registration
statement; provided, however, that, unless the disclosure of such Records is necessary to avoid or correct a misstatement
or omission in the registration statement or the release of such Records is ordered pursuant to a subpoena or other order from
a court of competent jurisdiction, the Company shall not be required to provide any information under this subparagraph (xii)
if (A) the Company believes, after consultation with counsel for the Company, that either (1) the requested Records constitute
confidential commercial and/or supervisory information within the meaning of 5 U.S.C. § 552(b)(4) and (8), respectively,
or (2) to do so would cause the Company to forfeit an attorney-client privilege that was applicable to such information, or (B)
if the Company has requested and been granted from the SEC confidential treatment of such information contained in any filing
with the SEC or documents provided supplementally or otherwise; provided, further, however, that any Records and
other information provided under this Section 2.5(xii) that is not generally publicly available shall be subject to such
confidential treatment as is customary for underwriters’ due diligence reviews;

 

(xiii)
in the case of any Underwritten Offering, use its reasonable best efforts to furnish to each seller and the underwriter a signed
counterpart of (A) an opinion or opinions of counsel to the Company (and/or internal counsel if acceptable to the managing underwriters
and the sellers), and (B) a comfort letter or comfort letters from the Company’s independent public accountants, each in
customary form and covering such matters of the type customarily covered by opinions or comfort letters, as the case may be, as
the seller or managing underwriter reasonably requests;

 

(xiv)
use its reasonable best efforts to cause the Registrable Securities covered by any registration statement to be listed on the
primary national securities exchange, if any, on which similar securities issued by the Company are then listed;

 

(xv)
provide a transfer agent and registrar for all Registrable Securities registered hereunder;

 

(xvi)
reasonably cooperate with each seller and each underwriter of any Underwritten Offering participating in the disposition of such
Registrable Securities and their respective counsel in connection with any filings required to be made with the Financial Industry
Regulatory Authority, Inc. (“FINRA”);

 

(xvii)
during the period when the prospectus is required to be delivered under the Securities Act, promptly file all documents required
to be filed with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act;

 

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(xviii)
notify each seller of Registrable Securities promptly of any request by the SEC for the amending or supplementing of any registration
statement or prospectus relating to such seller’s Registrable Securities;

 

(xix)
enter into such agreements (including underwriting agreements) as are customary in connection with an Underwritten Offering; and

 

(xx)
advise each seller of such Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the
issuance of any stop order by the SEC suspending the effectiveness of a registration statement relating to the such seller’s
Registrable Securities or the initiation or threatening of any proceeding for such purpose and promptly use its reasonable best
efforts to prevent the issuance of any stop order or to obtain its withdrawal as soon as practicable if such stop order should
be issued.

 

The
Company may, from time to time, require any Holder of Registrable Securities as to which any registration is being effected to
furnish to the Company in writing such information as the Company reasonably determines, based on the advice of counsel, is required
or advised to be included in connection with such registration regarding such Holder and the distribution of such Registrable
Securities, and the Company may exclude from such registration the Registrable Securities of such Holder if such Holder fails
to furnish such information within 15 days of receiving such request.

  

2.6
Suspension of Dispositions. Each Holder agrees by acquisition of any Registrable Securities that, upon receipt of any
notice (a “Suspension Notice”) from the Company of the happening of any event of the kind described in Section
2.5(vi)(C), such Holder will forthwith discontinue disposition of Registrable Securities until such Holder’s receipt
of the copies of the supplemented or amended prospectus, or until it is advised in writing (the “Advice”) by
the Company that the use of the prospectus may be resumed, and has received copies of any additional or supplemental filings which
are incorporated by reference in the prospectus, and, if so directed by the Company, such Holder will deliver to the Company all
copies, other than permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities
current at the time of receipt of such notice. In the event the Company shall give any such notice, the time period regarding
the effectiveness of registration statements set forth in Section 2.5(ii) and Section 2.5(iii) hereof shall be extended
by the number of days during the period from and including the date of the giving of the Suspension Notice to and including the
date when each seller of Registrable Securities covered by such registration statement shall have received the copies of the supplemented
or amended prospectus or the Advice. The Company shall use its reasonable best efforts and take such actions as are reasonably
necessary to render the Advice as promptly as reasonably practicable. In any event, the Company shall not be entitled to deliver
more than two Suspension Notices in any one year.

 

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2.7
Registration Expenses.

 

2.7.1
Demand Registrations. The Company shall be responsible for all reasonable and documented, out-of-pocket fees and expenses
incident to any Demand Registration including, without limitation, the Company’s performance of or compliance with this
Article 2, all registration and filing fees, all fees and expenses associated with filings required to be made with FINRA
(including, if applicable, the reasonable fees and expenses of any “qualified independent underwriter” as such term
is defined in FINRA Rule 5121, and of its counsel), as may be required by the rules and regulations of FINRA, fees and expenses
of compliance with securities or “blue sky” laws (including reasonable fees and disbursements of counsel in connection
with “blue sky” qualifications of the Registrable Securities), rating agency fees, printing expenses (including expenses
of printing certificates for the Registrable Securities and of printing prospectuses if the printing of prospectuses is requested
by any Holder of Registrable Securities), messenger and delivery expenses, the fees and expenses incurred in connection with any
listing or quotation of the Registrable Securities, and the fees and expenses of counsel for the Company and its independent certified
public accountants (including the expenses of any special audit or “comfort letters” required by or incident to such
performance). The Holders shall be responsible for (i) any underwriting discounts, commissions, or fees attributable to the sale
of the Registrable Securities, on a pro rata basis on the basis of the number of shares so sold whether or not any registration
statement becomes effective, and (ii) any applicable transfer taxes. The Company shall be responsible for the fees and expenses
of one firm of attorneys retained by all of the Holders in the aggregate in connection with the sale of Registrable Securities
in a Demand Registration. Notwithstanding the foregoing, the Company shall not be responsible for the fees and expenses of any
additional counsel, or any of the accountants, agents or experts retained by the Holders in connection with the sale of Registrable
Securities in a Demand Registration. The Company will also be responsible for its internal expenses in any Demand Registration
(including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties,
the expense of any annual audit and the expense of any liability insurance).

 

2.7.2
Piggyback Registrations. All fees and expenses incident to any Piggyback Registration including, without limitation, the
Company’s performance of or compliance with this Article 2, all registration and filing fees, all fees and expenses
associated with filings required to be made with FINRA (including, if applicable, the reasonable and documented fees and expenses
of any “qualified independent underwriter” as such term is defined in FINRA Rule 5121, and of its counsel), as may
be required by the rules and regulations of FINRA, fees and expenses of compliance with securities or “blue sky” laws
(including reasonable fees and disbursements of counsel in connection with “blue sky” qualifications of the Registrable
Securities), rating agency fees, printing expenses (including expenses of printing certificates for the Registrable Securities
and of printing prospectuses), messenger and delivery expenses, the fees and expenses incurred in connection with any listing
or quotation of the Registrable Securities, fees and expenses of counsel for the Company and its independent certified public
accountants (including the expenses of any special audit or “comfort letters” required by or incident to such performance)
and the fees and expenses of other persons retained by the Company, will be borne by the Company (unless paid by a securityholder
that is not a Holder for whose account the registration is being effected) whether or not any registration statement becomes effective;
provided, however, that any underwriting discounts, commissions, or fees attributable to the sale of the Registrable
Securities will be borne by the Holders pro rata on the basis of the number of shares so sold and the fees and expenses
of any counsel, accountants, or other persons retained or employed by any Holder and any applicable transfer taxes will be borne
by such Holder.

 

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2.8
Indemnification.

 

2.8.1
The Company agrees to indemnify and reimburse, to the fullest extent permitted by law, each seller of Registrable Securities,
and each of its employees, advisors, agents, representatives, partners, officers, and directors and each Person who controls such
seller (within the meaning of the Securities Act) and any agent or investment advisor thereof (collectively, the “Seller
Affiliates”) (A) against any and all losses, claims, damages, liabilities, and expenses, joint or several (including,
without limitation, reasonable attorneys’ fees and disbursements except as limited by Section 2.8.3) (collectively,
“Losses”) based upon, arising out of, related to or resulting from any untrue or alleged untrue statement of
a material fact contained in any registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement
thereto, or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements
therein not misleading, (B) against any and all Losses, as incurred, to the extent of the aggregate amount reasonably paid in
settlement of any litigation or investigation or proceeding by any governmental agency or body, commenced or threatened, or of
any claim whatsoever based upon, arising out of, related to or resulting from any such untrue statement or omission or alleged
untrue statement or omission made by the Company in any registration statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto; provided, that such settlement is effected with the consent of the Company (such consent
not to be unreasonably withheld); and (C) against any Losses as may be reasonably incurred in investigating, preparing, or defending
against any litigation, or investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon, arising out of, related to or resulting from any such untrue statement or omission or alleged untrue statement
or omission, or such violation of the Securities Act, the Exchange Act or any other similar federal or state securities laws or
any rule or regulation promulgated thereunder, to the extent that any such expense or cost is not paid under subparagraph (A)
or (B) above; provided, that the Company will have no obligation to provide any indemnification or reimbursement hereunder
to the extent that any such Losses (or actions or proceedings in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement or omission or alleged omission made in such registration statement, prospectus, or any preliminary
prospectus or any amendment thereof or supplement thereto, in reliance upon and in substantial conformity with information furnished
in writing to the Company by such seller or any of its Seller Affiliates (or on such seller’s or Seller Affiliate’s
behalf) for use therein.

 

2.8.2
In connection with any registration statement in which a seller of Registrable Securities is participating, each such seller will
furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with
any such registration statement or prospectus and, to the fullest extent permitted by law, each such seller will indemnify and
reimburse, to the fullest extent permitted by law, the Company and each of its employees, advisors, agents, representatives, partners,
officers and directors and each Person who controls the Company (within the meaning of the Securities Act or the Exchange Act)
and any agent or investment advisor (“Company Indemnified Persons”) thereof against any and all Losses resulting
from any untrue statement or alleged untrue statement of a material fact contained in the registration statement, prospectus,
or any preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such
untrue statement or alleged untrue statement or omission or alleged omission is contained in any information or affidavit so furnished
in writing to the Company by such seller or any Seller Affiliates (or on such seller’s or Seller Affiliate’s behalf)
specifically for inclusion in the registration statement, prospectus, or any preliminary prospectus or any amendment thereof or
supplement thereto and the Holders agree to reimburse the Company Indemnified Persons for any legal or other expenses reasonably
incurred by it in connection with investigating or defending any such action or claim as such expenses are incurred; provided,
that the obligation to indemnify will be several, not joint and several, among such sellers of Registrable Securities, and the
liability of each such seller of Registrable Securities will be in proportion and limited to the net amount received by such seller
from the sale of Registrable Securities pursuant to such registration statement; provided, however, that such seller
of Registrable Securities shall not be liable in any such case to the extent that prior to the filing of any such registration
statement or prospectus or amendment thereof or supplement thereto, such seller has furnished in writing to the Company information
expressly for use in such registration statement or prospectus or any amendment thereof or supplement thereto which corrected
or made not misleading information previously furnished to the Company.

 

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2.8.3
Any Person entitled to indemnification hereunder will (A) give prompt written notice to the indemnifying party of any claim with
respect to which it seeks indemnification (provided, that the failure to give such notice shall not limit the rights of
such Person) and (B) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified
and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim
with counsel reasonably satisfactory to the indemnified party; provided, however, that any person entitled to indemnification
hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the reasonable
and documented fees and expenses of such counsel shall be at the expense of such person unless (X) the indemnifying party has
agreed to pay such fees or expenses or (Y) the indemnifying party shall have failed to assume the defense of such claim and employ
counsel reasonably satisfactory to such person. If such defense is not assumed by the indemnifying party as permitted hereunder,
the indemnifying party will not be subject to any liability for any settlement made by the indemnified party without its consent
(but such consent will not be unreasonably withheld, conditioned or delayed). If such defense is assumed by the indemnifying party
pursuant to the provisions hereof, such indemnifying party shall not settle or otherwise compromise the applicable claim unless
(1) such settlement or compromise contains a full and unconditional release of the indemnified party or (2) the indemnified party
otherwise consents in writing. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim will
not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party
with respect to such claim, unless in the reasonable judgment of any indemnified party, a conflict of interest may exist between
such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party
shall be obligated to pay the reasonable fees and disbursements of such additional counsel or counsels.

 

2.8.4
Each party hereto agrees that, if for any reason the indemnification provisions contemplated by Section 2.8.1 or Section
2.8.2 are unavailable to or insufficient to hold harmless an indemnified party in respect of any Losses (or actions in respect
thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified
party as a result of such Losses (or actions in respect thereof) in such proportion as is appropriate to reflect the relative
fault of the indemnifying party and the indemnified party in connection with the actions which resulted in the losses, claims,
damages, liabilities or expenses as well as any other relevant equitable considerations. The relative fault of such indemnifying
party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact relates to information supplied by such indemnifying
party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contribution pursuant
to this Section 2.8.4 were determined by pro rata allocation (even if the Holders or any underwriters or all of
them were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable
considerations referred to in this Section 2.8.4. The amount paid or payable by an indemnified party as a result of Losses
(or actions in respect thereof) referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred
by such indemnified party in connection with investigating or, except as provided in Section 2.8.3, defending any such
action or claim. Notwithstanding the provisions of this Section 2.8.4, no Holder shall be required to contribute an amount
greater than the dollar amount by which the net proceeds received by such Holder with respect to the sale of any Registrable Securities
exceeds the amount of damages which such Holder has otherwise been required to pay by reason of any and all untrue or alleged
untrue statements of material fact or omissions or alleged omissions of material fact made in any registration statement, prospectus
or preliminary prospectus or any amendment thereof or supplement thereto related to such sale of Registrable Securities. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations in this Section 2.8.4
to contribute shall be several in proportion to the amount of Registrable Securities registered by it and not joint.

 

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If
indemnification is available under this Section 2.8, the indemnifying parties shall indemnify each indemnified party to
the full extent provided in Section 2.8.1 and Section 2.8.2 without regard to the relative fault of said indemnifying
party or indemnified party or any other equitable consideration provided for in this Section 2.8.4 subject, in the case
of any Holder, to the limited dollar amounts set forth in Section 2.8.2.

 

2.8.5
The indemnification and contribution provided for under this Agreement will remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any officer, director, or controlling Person of such indemnified
party and will survive the transfer of securities.

 

2.9
Transfer of Registration Rights. The rights of each Holder under this Agreement may be assigned or transferred to (i)
any Affiliate of the Holder or (ii) third-party transferees of the Registrable Securities or Warrants that are not Affiliates
of one another and that each acquire, or agree to acquire, an amount of Registrable Securities (or Warrants exercisable therefor),
and, in the case of both (i) and (ii), such Affiliate of the Holder or transferee enters into a Joinder Agreement, substantially
in the form of Exhibit A hereto (collectively, a “Permitted Transferee”).

 

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ARTICLE
3 

 

3.1
Rule 144. The Company will file the reports required to be filed by it under the Exchange Act and the rules and regulations
adopted by the SEC thereunder (or, if the Company is not required to file such reports, will, upon the request of the Holders,
make publicly available other information so long as necessary to permit sales of Registrable Securities pursuant to Rule 144)
and will take such further action as the Holders may reasonably request, all to the extent required from time to time to enable
the Holders to sell Registrable Securities without registration under the Securities Act within the limitation of the exemption
provided by Rule 144 or any similar rule or regulation hereafter adopted by the SEC. Upon the reasonable request of any Holder,
the Company will deliver to such parties a written statement as to whether it has complied with such requirements. If any Initial
Holder seeks to sell Company Common Stock under Rule 144, any legal opinion reasonably required by the transfer agent to effect
such sale shall be provided by, or at the expense of, the Company.

 

3.2
Preservation of Rights. The Company will not (i) grant any registration rights to third parties which are more favorable
than or inconsistent with the rights granted hereunder or (ii) enter into any agreement, take any action or permit any change
to occur, with respect to its securities that violates or subordinates the rights expressly granted to the Holders; provided,
however, that the Company may take any such actions as are necessary to memorialize or effect any existing arrangements
or agreements for the grant of registrations rights to the Existing Registration Rights Holders.

 

ARTICLE
4

TERMINATION

 

4.1
Termination. This Agreement shall terminate and be of no further force and effect at the earliest to occur of (i) its
termination by the written agreement of all parties or their respective successors in interest, (ii) with respect to any Holder,
the date on which all Company Common Stock held by such Holder have ceased to be Registrable Securities, (iii) with respect to
the Company, the date on which all Company Common Stock has ceased to be Registrable Securities and (iv) the dissolution, liquidation
or winding up of the Company.

 

ARTICLE
5

MISCELLANEOUS

 

5.1
Notices. All notices, requests, claims, demands and other communications under this Agreement shall be in writing and
shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight
courier service or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the
following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section
5.1):

 

If
to the Company:

  

Workhorse
Group Inc.

100
Commerce Drive 

Loveland,
Ohio 45140

Attention:
Paul Gaitan, CFO 

Email:
paul.gaitan@workhorse.com

  

     22

     

    

 

with
a copy to (which shall not constitute notice):

 

Fleming
PLLC

30
Wall Street, 8th Floor 

New
York, New York 10005

Attention:
Stephen M. Fleming

Email:
smf@flemingpllc.com

  

and

  

Sheppard,
Mullin, Richter & Hampton LLP

30
Rockefeller Plaza, 39th Floor

New
York, New York 10112

Attention:
Stephen A. Cohen

Email:
scohen@sheppardmullin.com

  

If
to any Initial Holder, to such Initial Holder at:

  

One
Bryant Park, 38th Floor

New
York, NY 10036

Attention:
Robert Comizio; Jordan Bryk

Telephone:
212-500-3148; 212-500-3152

Facsimile:
212-205-8739

Email: rcomizio@marathonfund.com; jbryk@marathonfund.com

 

with
a copy to (which shall not constitute notice):

 

Covington
& Burling LLP

The
New York Times Building

620
Eighth Avenue

New
York, New York 10018

Attention:
Peter Schwartz

Email:
pschwartz@cov.com

  

Any
notice or communication hereunder shall be deemed to have been given or made as of the date so delivered if personally delivered
and five calendar days after mailing if sent by registered or certified mail (except that a notice of change of address shall
not be deemed to have been given until actually received by the addressee). If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it.

 

5.2
Authority. Each of the parties hereto represents to the other that (i) it has the corporate power and authority to
execute, deliver and perform this Agreement, (ii) the execution, delivery and performance of this Agreement by it has been duly
authorized by all necessary corporate action and no such further action is required, (iii) it has duly and validly executed and
delivered this Agreement and (iv) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance
with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally and general equity principles.

 

     23

     

    

 

5.3
Governing Law. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the
State of New York irrespective of the choice of laws principles of the State of New York. Each party hereto irrevocably submits
to the exclusive jurisdiction of the courts of the State of New York sitting in the County of New York or the United States District
Court for the Southern District of New York and the appellate courts having jurisdiction of appeals in such courts to resolve
any dispute, controversy or claim arising out of, or relating to, the transactions contemplated by this Agreement, or the validity,
interpretation, breach or termination of any provision of this Agreement.

 

5.4
Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.4.

 

5.5
Successors and Assigns. The rights of a Holder may only be assigned in accordance with Section 2.9 to a Permitted
Transferee. A Permitted Transferee to whom rights are transferred pursuant to Section 2.9 may not again transfer those
rights to any other Permitted Transferee, other than as provided in Section 2.9. Except as otherwise expressly provided
herein, this Agreement shall be binding upon and inure to the benefit of the parties hereto and any and all successors to the
Company and each Holder and their respective assigns.

 

5.6
No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors
and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or
equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Agreement; provided, however,
the parties hereto hereby acknowledge that the Persons set forth in Section 2.4(b) are express third-party beneficiaries
in accordance with Section 2.4(b).

 

5.7
Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

5.8
Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced under
any law or as a matter of public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full
force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced,
the parties to this Agreement shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be
consummated as originally contemplated to the greatest extent possible.

 

     24

     

    

 

5.9
Waivers. The observance of any term of this Agreement may be waived (either generally or in a particular instance and
either retroactively or prospectively) by the party entitled to enforce such term, but such waiver shall be effective only if
it is in a writing signed by the party against whom the existence of such waiver is asserted. Unless otherwise expressly provided
in this Agreement, no delay or omission on the part of any party in exercising any right or privilege under this Agreement shall
operate as a waiver thereof, nor shall any waiver on the part of any party of any right or privilege under this Agreement operate
as a waiver of any other right or privilege under this Agreement nor shall any single or partial exercise of any right or privilege
preclude any other or further exercise thereof or the exercise of any other right or privilege under this Agreement. No failure
by either party to take any action or assert any right or privilege hereunder shall be deemed to be a waiver of such right or
privilege in the event of the continuation or repetition of the circumstances giving rise to such right unless expressly waived
in writing by the party against whom the existence of such waiver is asserted.

 

5.10
Entire Agreement. This Agreement, together with the Warrants and any related exhibits and schedules thereto, constitutes
the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes
all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

 

5.11
Amendment. This Agreement may not be amended or modified in any respect except by a written agreement signed by the
Company and the Holders of a majority of the then-outstanding Registrable Securities.

 

5.12
Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and
the same agreement, and shall become effective when each party hereto shall have received counterparts hereof signed by each of
the other parties hereto. If any signature is delivered by facsimile transmission or by PDF, such signature shall create a valid
and binding obligation of the party executing (or on whose behalf the signature is executed) with the same force and effect as
if such facsimile or PDF signature were an original thereof.

 

5.13
Further Assurances. Each of the parties to this Agreement shall, and shall cause their Affiliates to, execute and deliver
such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required
to carry out the provisions hereof and to give effect to the transactions contemplated hereby.

  

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

     25

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first written above.

 

	 	WORKHORSE
    GROUP INC.
	 	 	 
	 	By:
    	/s/
    Stephen     S. Burns
	 	 	Name:
    Stephen S. Burns
	 	 	Title:
    CEO
	 	 	 
	 	Marathon
        Structured Product Strategies Fund, LP

        Marathon
        Blue Grass Credit Fund, LP

        Marathon
        Centre Street Partnership, L.P.

        TRS
        Credit Fund, LP

	 	 
	 	By:
Marathon Asset Management LP, the investment advisor to each of the entities listed above

  

	 	By:
    	/s/
    Louis Hanover
	 	 	Name:
    Louis Hanover
	 	 	Title:
    CIO, Co-Managing Partner

  

[Signature
Page to Registration Rights Agreement]

 

     

     

    

 

Exhibit
A

  

JOINDER
AGREEMENT

 

Reference
is made to the Registration Rights Agreement, dated as of December 31, 2018 (as amended from time to time, the “Registration
Rights Agreement”), by and among Workhorse Group Inc., a Nevada corporation, Marathon Structured Product Strategies
Fund, LP, a Delaware limited partnership, Marathon Blue Grass Credit Fund, LP, a Delaware limited partnership, Marathon Centre
Street Partnership, L.P., a Delaware limited partnership, TRS Credit Fund, LP, a Delaware limited partnership, and the other parties
thereto, if any. The undersigned agrees, by execution hereof, to become a party to, and to be subject to the rights and obligations
under the Registration Rights Agreement.

 

[NAME]

	By:	 	 
	 	Name:	 
	 	Title:	 

 

 

Date:

 

 

Address:

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