Document:

World Moto, Inc. - Exhibit 10.4 - Filed by newsfilecorp.com

SECURITY AGREEMENT 

            THIS
SECURITY AGREEMENT (this “Agreement”) is made as of April 4, 2014
(“Effective Date”) is made by World Moto, Inc., a Nevada
corporation (the “Company”), in favor of Dominion Capital LLC, in its
capacity as collateral agent (in such capacity, the “Collateral Agent”)
for the “Purchasers” (as defined below) party to the Securities Purchase
Agreement, dated as of April 4, 2014 (as amended, restated or otherwise modified
from time to time, the “Purchase Agreement”). 

RECITAL

            A.       
The Company and each party listed as a “Purchaser” on the Schedule A attached
thereto (collectively, the “Purchasers”) are parties to the Purchase
Agreement, pursuant to which the Company shall be required to sell, and the
Purchasers shall purchase or have the right to purchase, the “Debentures” (as
defined therein) issued pursuant thereto (as such Debentures may be amended,
restated, replaced or otherwise modified from time to time in accordance with
the terms thereof, collectively, the “Debentures”) 

           
B.        The parties have agreed that the
Company’s obligations under the Debentures will be secured by the Company’s
grant to the Collateral Agent, for itself and for the ratable benefit of the
Purchasers, of a security interest in and to certain Collateral (as defined
below), pursuant to the terms and conditions of this Agreement. 

            NOW,
THEREFORE, in consideration of the foregoing, and the representations,
warranties, covenants and conditions set forth below, the parties hereto,
intending to be legally bound, hereby agree as follows: 

AGREEMENT

           
1.        SECURITY.

                          1.1       
Grant of Security Interest. As security for the prompt and
punctual payment and performance of all Indebtedness (as defined below) of the
Company to the Purchasers when and as due under the Debentures, the Company
hereby grants to the Collateral Agent, for itself and for the ratable benefit of
the Purchasers, a security interest in the Collateral (as defined below). For
purposes of this Agreement, “Indebtedness” means all obligations and
liabilities of the Company to the Purchasers under (i) the Debentures, and (ii)
this Agreement.

                          1.2       
Collateral Defined. As used in this Agreement, the term
“Collateral” means, collectively, wherever located, whether now owned or
hereafter acquired or now existing or hereafter acquired or created, all right,
title and interest of the Company in and to all of its assets, including,
without limitation: (i) accounts, chattel paper, deposit accounts, documents,
general intangibles (including, but not limited to intellectual property,
payment intangibles, software, licenses, franchises and customer information),
goods (including, but not limited to equipment, fixtures and inventory),
instruments, investment property, letter-of-credit rights, money, other personal
property, software, any commercial tort claims; (ii) to the extent not referred
to in clause (i) of this sentence, all (A) supporting obligations and incidental
property rights incident to, arising or accruing pursuant to or otherwise
relating to any of the things referred to in clause (i) of this sentence,
whether arising or accruing from any action taken by the Company or the
Collateral Agent or otherwise, (B) proceeds of any of the items referred to in
clauses (i) and (ii)(A) of this sentence and (C) books and records relating to
any of the items referred to in clauses (i) and (ii)(A) and (B) of this
sentence. 

                          1.3       
Collateral Agent Rights. The Collateral Agent is hereby authorized to
file one of more UCC-1 Financing Statements with the Secretary of State of the
State of Nevada evidencing and providing notice of the security interest granted
pursuant to this Agreement in the Collateral.

                          1.4       
Release of Collateral. Upon the full and final discharge of all of the
Indebtedness, the Collateral Agent will execute and deliver such documents as
may be reasonably necessary and requested by the Company to release the
Collateral from the security interest granted to the Collateral Agent in this
Agreement. 

                          1.5       
Termination. When all the Indebtedness has been paid in full and
discharged, this Agreement and the security interest granted to the Collateral
Agent hereunder will terminate and a UCC-3 Termination Statement shall be filed
by Collateral Agent to indicate the termination of the security interest created
hereby. 

            2.       
REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to the Collateral Agent that the statements contained in
the following paragraphs of this Section 2 are all true and correct immediately
prior to the execution of the Debenture. 

                         
2.1       
Title. The Company owns all right, title and interest in and to
the Collateral.

                          2.2       
Right to Grant Interest. The Company has the right to grant the security
interest under this Agreement to Collateral Agent in the Collateral. 

                          2.3       
No Bankruptcy. Company is not subject to any bankruptcy case or
insolvency proceedings before any court in any jurisdiction. In the ninety (90)
days preceding the date of this Agreement, the Company has not received any
threat from any third party to subject the Company to any involuntary bankruptcy
or insolvency proceeding. 

            3.       
COVENANTS OF THE COMPANY. So long as any of the Company Indebtedness to
the Purchasers are not been fully satisfied, the Company covenants and agrees
with the Collateral Agent that: 

                          3.1       
Payment of Indebtedness. The Company will pay all Indebtedness
when due under the Debentures; 

                          3.2       
Condition of Collateral. The Company will maintain the Collateral in good
condition and repair; 

                          3.3       
Further Assurances. The Company will execute and deliver such
documents as the Collateral Agent deems necessary to create, perfect and
continue the security interests granted by this Agreement; 

                          3.4       
Taxes. The Company will pay all taxes due and owing by the
Company at such time as they become due. 

                          3.5       
No Sale or Transfer. The Company will not to sell, offer to
sell, or otherwise transfer the Collateral, except in the ordinary course of
business;

                          3.6       
Books and Records. The Company will keep, in accordance with
accounting principles consistently applied, complete and accurate books and
records regarding all Collateral;

                          3.7       
Inspection. The Company will permit the Collateral Agent and its
designees at all reasonable times to inspect the Collateral and Debtor’s books
and records relating to Collateral, and to audit and make copies or extracts
from such books and records 

2

           
4.        RIGHTS AND
REMEDIES UPON EVENT OF DEFAULT. 

                          4.1       
General Remedies. In the event of an occurrence (and during the
continuance) of an Event of Default (as defined in the Debentures), in addition
to exercising any other rights or remedies the Purchasers may have under the
Debentures, at law or in equity, or pursuant to the provisions of the Uniform
Commercial Code, the Collateral Agent may, at its option, and without demand
first made, exercise any one or all of the following rights and remedies: (i)
collect the Collateral and its proceeds; (ii) take possession of the Collateral
wherever it may be found, using all reasonable means to do so, or require the
Company to assemble the Collateral and make it available to the Collateral Agent
at a place designated by the Collateral Agent that is reasonably convenient to
the Company; (iii) proceed with the foreclosure of the security interest in the
Collateral granted herein and the sale or endorsement and collection of the
proceeds of the Collateral in any manner permitted by law or provided for
herein; (iv) sell, lease or otherwise dispose of the Collateral at public or
private sale, with or without having the Collateral at the place of sale; (v)
institute a suit or other action against the Company for recovery on the
Debenture or to obtain possession or effect a sale of the Collateral; (vi)
exercise any rights and remedies of a Company under the Uniform Commercial Code;
and/or (vii) offset, against any payment due from the Company to the Collateral
Agent, the whole or any part of any Indebtedness of the Collateral Agent to the
Company. 

                          4.2       
No Election of Remedies. The election by the Collateral Agent of any
right or remedy will not prevent any Purchaser from exercising any other right
or remedy against the Company. 

                          4.3       
Proceeds. If an Event of Default occurs (and is continuing), all
proceeds and payments with respect to the Collateral will be retained by the
Collateral Agent (or if received by the Company will be held in trust and will
be forthwith delivered by the Company to the Collateral Agent in the original
form received, endorsed in blank) and held by the Collateral Agent as part of
the Collateral or applied by the Collateral Agent to the payment of the
Indebtedness. 

                          4.4       
Sales of Collateral. Any item of Collateral may be sold for cash
or other value at public or private sale or other disposition and the proceeds
thereof collected by or for the Collateral Agent as provided in the Uniform
Commercial Code or under other applicable law. The Company agrees to promptly
execute and deliver, or promptly cause to be executed and delivered, such
instruments, documents, assignments, waivers, certificates and affidavits and
supply or cause to be supplied such further information and take such further
action as the Collateral Agent may reasonably require in connection with any
such sale or disposition. The Collateral Agent will have the right upon any such
public sale or sales, and, to the extent permitted by law, upon any such private
sale or sales, to purchase the whole or any part of the Collateral so sold, free
of any right or equity of redemption in the Company, which right or equity is
hereby waived or released. The Company hereby waives any prior notice periods,
to the extent allowable by applicable law. 

                          4.5       
Application of Proceeds. The proceeds of all sales and
collections in respect of the Collateral, the application of which is not
otherwise specifically herein provided for, will be applied as follows: (i)
first, to the payment of the costs and expenses of such sale or sales and
collections and the actual attorneys’ fees and out-of-pocket expenses incurred
by the Collateral Agent relating to costs of collection; (ii) second, any
surplus then remaining will be applied to the payment of all unpaid principal
under the Debenture; and (iii) third, any surplus then remaining will be paid to
the Company. 

3

           
5.       
GENERAL PROVISIONS. 

                          5.1       
Appointment of Collateral Agent. Each Purchaser hereby (a) appoints the
Collateral Agent, as the collateral agent hereunder, and (b) authorizes the
Collateral Agent (and its officers, directors, employees and agents) to take such action
on such Purchaser’s behalf in accordance with the terms hereof. The Collateral
Agent shall not have, by reason hereof, a fiduciary relationship in respect of
any Purchaser. Neither the Collateral Agent nor any of its officers, directors,
employees or agents shall have any liability to any Purchaser for any action
taken or omitted to be taken in connection hereof except to the extent caused by
its own gross negligence or willful misconduct, and each Purchaser agrees to
defend, protect, indemnify and hold harmless the Collateral Agent and all of its
officers, directors, employees and agents (collectively, the “Collateral
Agent Indemnitees”) from and against any losses, damages, liabilities,
obligations, penalties, actions, judgments, suits, fees, costs and expenses
(including, without limitation, reasonable attorneys’ fees, costs and expenses)
incurred by such Collateral Agent Indemnitee, whether direct, indirect or
consequential, arising from or in connection with the performance by such
Collateral Agent Indemnitee of the duties and obligations of Collateral Agent
pursuant hereto. The Collateral Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the holders of a majority in aggregate principal amount
of the Debentures (the “Required Holders”), and such instructions shall
be binding upon all holders of Debentures; provided, however, that the
Collateral Agent shall not be required to take any action which, in the
reasonable opinion of the Collateral Agent, exposes the Collateral Agent to
liability or which is contrary to this Agreement or applicable law. The
Collateral Agent shall be entitled to rely upon any written notices, statements,
certificates, orders or other documents or any telephone message believed by it
in good faith to be genuine and correct and to have been signed, sent or made by
the proper Person (as defined in the Purchase Agreement), and with respect to
all matters pertaining to this Agreement and its duties hereunder or thereunder,
upon advice of counsel selected by it. 

                          5.2       
Resignation of Collateral Agent. The Collateral Agent may resign
from the performance of all its functions and duties hereunder at any time by
giving at least ten (10) business days’ prior written notice to the Company and
each holder of Debentures. Such resignation shall take effect upon the
acceptance by a successor Collateral Agent of appointment pursuant to clauses
(b) and (c) below or as otherwise provided below. The Required Holders may, by
written consent, remove the Collateral Agent from all its functions and duties
hereunder. 

                          (a)       
Upon any such notice of resignation or removal, the Required Holders shall
appoint a successor collateral agent. Upon the acceptance of any appointment as
Collateral Agent hereunder by a successor agent, such successor collateral agent
shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the collateral agent, and the Collateral Agent shall be
discharged from its duties and obligations under this Agreement. After the
Collateral Agent’s resignation or removal hereunder as the collateral agent, the
provisions of this Section 5(a) shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was the Collateral Agent under this
Agreement. 

                          (b)       
If a successor collateral agent shall not have been so appointed within ten (10)
business days of receipt of a written notice of resignation or removal, the
Collateral Agent shall then appoint a successor collateral agent who shall serve
as the Collateral Agent until such time, if any, as the Required Holders appoint
a successor collateral agent as provided above. 

                          (c)       
In the event that a successor Collateral Agent is appointed pursuant to the
provisions of this Section 5.2 that is not a Purchaser or an affiliate of any
Purchaser (or the Required Holders or the Collateral Agent (or its successor),
as applicable, notify the Company that they or it wants to appoint such a
successor Collateral Agent pursuant to the terms of this Section 5.2), the
Company covenants and agrees to promptly take all actions reasonably requested
by the Required Holders or the Collateral Agent (or its successor), as
applicable, from time to time, to secure a successor Collateral Agent
satisfactory to the requesting part(y)(ies), in their sole discretion, including,
without limitation, by paying all reasonable and customary fees and expenses of
such successor Collateral Agent, by having the Company agree to indemnify any
successor Collateral Agent pursuant to reasonable and customary terms and by the
Company executing a collateral agency agreement or similar agreement and/or any
amendment hereto reasonably requested or required by the successor Collateral
Agent. 

4

                          5.3       
Survival of Warranties. The representations, warranties and covenants of
the Company and the Collateral Agent contained in or made pursuant to this
Agreement shall survive the execution and delivery of this Agreement and shall
in no way be affected by any investigation of the subject matter thereof made by
or on behalf of any of the Collateral Agent or the Company, as the case may be.

                          5.4       
Successors and Assigns. The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective successors and
assigns of the parties.

                          5.5       
Governing Law. This Agreement shall be governed by and construed under
the internal laws of the State of Nevada as applied to agreements among Nevada
residents entered into and to be performed entirely within Nevada, without
reference to principles of conflict of laws or choice of laws and, to the extent
applicable, by federal law.

                          5.6       
Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. 

                          5.7       
Headings. The headings and captions used in this Agreement are used only
for convenience and are not to be considered in construing or interpreting this
Agreement. All references in this Agreement to sections, paragraphs, exhibits
and schedules shall, unless otherwise provided, refer to sections and paragraphs
hereof and exhibits and schedules attached hereto, all of which exhibits and
schedules are incorporated herein by this reference. 

                          5.8       
Notices. Unless otherwise provided, any notice required or
permitted under this Agreement shall be given in writing and shall be deemed
effectively given (i) at the time of personal delivery, if delivery is in
person; (ii) one (1) business day after deposit with an express overnight
courier for United States deliveries, or two (2) business days after such
deposit for deliveries outside of the United States, with proof of delivery from
the courier requested; or (iii) three (3) business days after deposit in the
United States mail by certified mail (return receipt requested) for United
States deliveries when addressed to the party to be notified at the address
indicated for such party on the signature page hereto, or, or at such other
address as any party or the Company may designate by giving ten (10) days’
advance written notice to all other parties. 

                          5.9       
Severability. If one or more provisions of this Agreement are
held to be unenforceable under applicable law, such provision(s) shall be
excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision(s) were so excluded and shall be enforceable in
accordance with its terms. 

                          5.10    
 Further Assurances. From and after the date of this
Agreement, upon the request of the Collateral Agent or the Company, the Company
and the Collateral Agent shall execute and deliver such instruments, documents
or other writings as may be reasonably necessary or desirable to confirm and
carry out and to effectuate fully the intent and purposes of this Agreement.

5

                          5.9       
Waiver and Amendment. Any of the terms and provisions of this Agreement
may be waived at any time by the party that is entitled to the benefit thereof,
but only by a written instrument executed by such party. This Agreement may be
amended only by an agreement in writing executed by the parties. 

                          5.10     
Delay or Omission. No delay or omission to exercise any right, power or
remedy accruing to any party hereto shall impair any such right, power or remedy
of such party nor be construed to be a waiver of any such right, power or remedy
nor constitute any course of dealing or performance hereunder. 

[SIGNATURE PAGE IMMEDIATELY FOLLOWS] 

6

            IN
WITNESS WHEREOF, the parties have caused this SECURITY AGREEMENT to be executed
and delivered as of the date first above written. 

COMPANY: 

 

WORLD MOTO,
INC. 
a Nevada corporation

 

By:
___________________________________
      
Name:
       Title: 

Agreed and accepted by: 

COLLATERAL AGENT: 

DOMINION CAPITAL LLC 

By:
___________________________________
      
Name:
       Title: 

[SECURITY AGREEMENT] 

Agreed and accepted by: 

PURCHASER: 

_____________________

 

By: ___________________________________
      
Name:
       Title: 

[SECURITY AGREEMENT]EXHIBIT 10.1

                       ENVISION SOLAR INTERNATIONAL, INC.
                        RESTRICTED STOCK GRANT AGREEMENT

         This  Restricted  Stock Grant  Agreement (the  "AGREEMENT") is made and
entered into as of April 2, 2014, (the "EFFECTIVE DATE") by and between Envision
Solar International,  Inc., a Nevada corporation (the "COMPANY"), and the person
named below (the "GRANTEE").

GRANTEE:                                  JACK SCHNEIDER
                                          --------------------------------------

SOCIAL SECURITY NUMBER:                   (PROVIDED SEPARATELY)
                                           -------------------------------------

ADDRESS:                                  (PROVIDED SEPARATELY)
                                          --------------------------------------

TOTAL NUMBER OF SHARES TO BE GRANTED:     1,000,000 (THE "RESTRICTED SHARES")
                                          --------------------------------------

         1. GRANT OF RESTRICTED SHARES AND ESCROW.

                  1.1  GRANT OF  RESTRICTED  SHARES.  In  consideration  for the
performance  of services  by the  Grantee  for the  Company as a  director,  the
Company  hereby  grants the  Restricted  Shares to the  Grantee,  subject to the
conditions of this Agreement. As used in this Agreement, the term "SHARES" shall
mean shares of the  Company's  common stock,  par value $0.001 per share,  which
includes the Restricted Shares granted under this Agreement,  and all securities
received (i) in replacement of the Shares,  (ii) as a result of stock  dividends
or stock  splits with  respect to the Shares,  and (iii) in  replacement  of the
Shares  in a  merger,  recapitalization,  reorganization  or  similar  corporate
transaction.

                  1.2 ESCROW OF RESTRICTED  SHARES. The Secretary of the Company
shall hold the Shares in escrow and will either (i) release eligible  Restricted
Shares when vested or (ii) in the event  Grantee is  terminated  as set forth in
Section  2.2 of this  Agreement,  return  Restricted  Shares  which have not yet
vested  as of the date of such  termination  to the  Company  for  cancellation.
Grantee will have no voting rights with respect to Restricted  Shares until such
Restricted Shares have been vested and released from escrow to the Grantee.  All
cash, stock, and other dividends  declared with respect to the Restricted Shares
while in escrow will be remitted back to the Company when paid.

         2.  VESTING.  The  Restricted  Shares  shall vest and be released  from
escrow to the  Grantee  under this  Agreement  in  accordance  with the  vesting
schedule  set forth in Section  2.1 and the other  conditions  precedent  to the
release from escrow of the eligible Restricted Shares.

                  2.1  SCHEDULE OF VESTING.  Grantee  shall be eligible  for the
release from escrow of Restricted Shares as follows:  166,672 Shares on April 2,
2014 and then 69,444 Shares on the last day of each calendar quarter  thereafter
commencing on June 30, 2014.

                  2.2 TERMINATION. If the Grantee's services with the Company as
a director  terminate  for any reason before all of the  Restricted  Shares have
vested in accordance  with Section 2.1 of this  Agreement,  then the  Restricted
Shares  which  have  not yet  vested  as of the date of such  termination  shall

                                      -1-
<PAGE>

immediately be forfeited as of the date of such  termination and returned to the
Company by the Secretary for cancellation.

                  2.3 TITLE TO SHARES.  The exact  spelling of the name(s) under
which Grantee shall take title to the Shares is:

                  JACK SCHNEIDER
                  --------------------------------------------------------------
                  --------------------------------------------------------------

                  Grantee desires to take title to the Shares as follows:

                  [ x ] Individual, as separate property

                  [   ] Husband and wife, as community property

                  [   ] Joint Tenants

                  To assign the Shares to a trust, a stock transfer agreement in
a form and  substance  acceptable  to the Company must be completed and executed
and such transfer must comply with applicable federal and state securities laws.

         3.  REPRESENTATIONS  AND WARRANTIES OF GRANTEE.  Grantee represents and
warrants to the Company that:

                  3.1 AGREES TO TERMS OF THIS AGREEMENT.  Grantee has received a
copy of this  Agreement,  has read and  understands the terms of this Agreement,
and agrees to be bound by its terms and conditions.

                  3.2  ACCEPTANCE  OF SHARES  FOR OWN  ACCOUNT  FOR  INVESTMENT.
Grantee is  acquiring  the Shares  for  Grantee's  own  account  for  investment
purposes  only  and not  with a view  to,  or for  sale in  connection  with,  a
distribution  of the Shares within the meaning of the Securities Act of 1933, as
amended (the "Securities  Act").  Grantee has no present intention of selling or
otherwise disposing of all or any portion of the Shares.

                  3.3  ACCESS  TO  INFORMATION.  Grantee  has had  access to all
information  regarding  the Company and its  present and  prospective  business,
assets,  liabilities and financial  condition that Grantee reasonably  considers
important  in making the  decision to acquire  the  Shares,  and Grantee has had
ample opportunity to ask questions of the Company's  representatives  concerning
such matters and this investment.

                  3.4 UNDERSTANDING OF RISKS. Grantee is fully aware of: (i) the
highly  speculative  nature of the investment in the Shares;  (ii) the financial
hazards involved; (iii) the lack of liquidity of the Shares and the restrictions
on  transferability of the Shares (e.g., that Grantee may not be able to sell or
dispose  of  the  Shares  or  use  them  as  collateral  for  loans);  (iv)  the
qualifications and backgrounds of the management of the Company; and (v) the tax
consequences  of investment in the Shares.  Grantee is capable of evaluating the
merits and risks of this  investment,  has the ability to protect  Grantee's own
interests in this transaction and is financially capable of bearing a total loss
of this investment.

                                      -2-
<PAGE>

                  3.5 NO GENERAL SOLICITATION.  At no time was Grantee presented
with or solicited by any publicly issued or circulated  newspaper,  mail, radio,
television or other form of general  advertising or  solicitation  in connection
with the offer, sale and issue of the Shares.

         4.   COMPLIANCE   WITH  SECURITIES   LAWS.   Grantee   understands  and
acknowledges  that the Shares have not been  registered  with the Securities and
Exchange   Commission   (the  "SEC")   under  the   Securities   Act  and  that,
notwithstanding  any other  provision  of this  Agreement to the  contrary,  the
issuance  of any  Shares  is  expressly  conditioned  upon  compliance  with the
Securities  Act and all  applicable  state  securities  laws.  Grantee agrees to
cooperate with the Company to ensure compliance with such laws.

         5. RESTRICTED SECURITIES.

                  5.1  NO  TRANSFERS  UNLESS   REGISTERED  OR  EXEMPT.   Grantee
understands  that  Grantee may not  transfer  any Shares  unless such Shares are
registered  under  the  Securities  Act and  qualified  under  applicable  state
securities laws or unless, in the opinion of counsel to the Company,  exemptions
from such  registration and  qualification  requirements are available.  Grantee
understands that only the Company may file a registration statement with the SEC
and that the Company is under no obligation to do so with respect to the Shares.
Grantee  has  also  been  advised  that   exemptions   from   registration   and
qualification  may not be available or may not permit Grantee to transfer all or
any of the Shares in the amounts or at the times proposed by Grantee.

                  5.2 SEC RULE 144. In  addition,  Grantee has been advised that
SEC Rule 144 promulgated under the Securities Act, which permits certain limited
sales of unregistered securities, is not presently available with respect to the
Shares and, in any event,  requires that the Shares be held for a minimum of six
months, and in certain cases one (1) year, after they have been acquired, before
they may be  resold  under  Rule  144.  Grantee  understands  that  Rule 144 may
indefinitely  restrict  transfer  of the  Shares so long as  Grantee  remains an
"affiliate" of the Company or if "current public  information" about the Company
(as defined in Rule 144) is not publicly available.

         6. MARKET  STANDOFF  AGREEMENT.  Grantee agrees in connection  with any
registration of the Company's  securities  that, upon the request of the Company
or the  underwriters  managing any public offering of the Company's  securities,
Grantee  shall not sell or  otherwise  dispose of any Shares  without  the prior
written  consent of the  Company or such  underwriters,  as the case may be, for
such  period of time (not to exceed one  hundred  eighty  (180)  days) after the
effective date of such  registration  requested by such underwriters and subject
to all  restrictions  as the Company or the  underwriters  may specify.  Grantee
further  agrees  to  enter  into  any  agreement   reasonably  required  by  the
underwriters to implement the foregoing.

         7. COMPANY TAKE-ALONG RIGHT.

                  7.1  APPROVED  SALE.  If the Board of Directors of the Company
(the "Board") shall deliver a notice to Grantee (a "SALE EVENT NOTICE")  stating
that the  Board  has  approved  a sale of all or a portion  of the  Company  (an
"APPROVED  SALE") and specifying the name and address of the proposed parties to
such transaction and the consideration payable in connection therewith,  Grantee
shall (i) consent to and raise no  objections  against the Approved  Sale or the
process  pursuant  to which  the  Approved  Sale was  arranged,  (ii)  waive any
dissenter's  rights and other similar rights,  and (iii) if the Approved Sale is

                                      -3-
<PAGE>

structured as a sale of securities,  agree to sell Grantee's Shares on the terms
and conditions of the Approved Sale which terms and  conditions  shall treat all
stockholders  of the Company  equally (on a pro rata basis),  except that shares
having a liquidation  preference may, if so provided in the documents  governing
such  shares,  receive  an amount  of  consideration  equal to such  liquidation
preference in addition to the consideration  being paid to the holders of Shares
not having a liquidation preference.

                  Grantee shall take all necessary and desirable  lawful actions
as  directed by the Board and the  stockholders  of the  Company  approving  the
Approved  Sale  in  connection  with  the  consummation  of any  Approved  Sale,
including  without  limitation,  the  execution  of  such  agreements  and  such
instruments  and  other  actions   reasonably   necessary  to  (A)  provide  the
representations,  warranties,  indemnities,  covenants, conditions,  non-compete
agreements,  escrow  agreements and other provisions and agreements  relating to
such Approved Sale and, (B) effectuate the  allocation and  distribution  of the
aggregate  consideration upon the Approved Sale,  PROVIDED,  that this Section 7
shall not require  Grantee to indemnify  the  purchaser in any Approved Sale for
breaches of the  representations,  warranties or covenants of the Company or any
other  stockholder,  except to the extent (x)  Grantee is not  required to incur
more than its pro rata share of such  indemnity  obligation  (based on the total
consideration to be received by all stockholders that are similarly situated and
hold  the  same  class or  series  of  capital  stock)  and (y)  such  indemnity
obligation  is  provided  for and limited to a  post-closing  escrow or holdback
arrangement of cash or stock paid in connection with the Approved Sale.

                  7.2 COSTS.  Grantee shall bear Grantee's PRO RATA share (based
upon the amount of  consideration to be received) of the reasonable costs of any
sale of  Shares  pursuant  to an  Approved  Sale to the  extent  such  costs are
incurred for the benefit of all selling  stockholders of the Company and are not
otherwise paid by the Company or the acquiring party.  Costs incurred by Grantee
on  Grantee's  own  behalf  shall  not be  considered  costs of the  transaction
hereunder.

                  7.3 SHARE DELIVERY.  At the consummation of the Approved Sale,
Grantee shall, if applicable, deliver certificates representing the Shares to be
transferred,  duly endorsed for transfer and  accompanied by all requisite stock
transfer taxes, if any, and the Shares to be transferred shall be free and clear
of any liens,  claims or encumbrances  (other than restrictions  imposed by this
Exercise Notice) and Grantee shall so represent and warrant.

                  7.4 TERMINATION OF COMPANY  TAKE-ALONG  RIGHT.  The Take-Along
Right  shall  terminate  as to the Shares  upon the Public  Trading  Date of the
Shares.  For the purposes of this  Agreement,  the "Public  Trading Date" of the
Shares is the date on which the Shares first become  freely  tradable  under the
Securities  Act,  either  pursuant  to  Rule  144 or  another  provision  of the
Securities  Act.  The  holder of the  Shares  may apply to have all  restrictive
transfer legends removed from the certificates  evidencing the Shares,  provided
that the  request  for legend  removal is made at such times and in such  manner
that removal is accomplished in compliance with the Securities Act and the rules
and regulations promulgated under the Securities Act; and provided further, that
any  proposed  sale  of  Shares  must  comply  with  all  Company  policies  and
procedures, and with applicable federal, state and local laws.

                                      -4-
<PAGE>

         8. RIGHTS AS A STOCKHOLDER. Subject to the terms and conditions of this
Agreement,  Grantee shall have all of the rights of a stockholder of the Company
with  respect  to the  Shares  after  eligible  Restricted  Shares  vest and are
released  from  escrow to  Grantee,  until such time as Grantee  disposes of the
Shares.

         9. RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

                  9.1 LEGENDS.  Grantee  understands and agrees that the Company
shall  place  the  legends  set  forth  below or  similar  legends  on any stock
certificate(s)  evidencing the Shares,  together with any other legends that may
be required by state or federal  securities  laws, the Company's  Certificate of
Incorporation or Bylaws,  any other agreement between Grantee and the Company or
any agreement between Grantee and any third party:

                  THE  SECURITIES  REPRESENTED  HEREBY HAVE NOT BEEN  REGISTERED
                  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES
                  ACT"), OR UNDER THE SECURITIES  LAWS OF CERTAIN STATES.  THESE
                  SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY  AND
                  RESALE  AND  MAY  NOT  BE  TRANSFERRED  OR  RESOLD  EXCEPT  AS
                  PERMITTED  UNDER  THE  SECURITIES  ACT  AND  APPLICABLE  STATE
                  SECURITIES   LAWS,   PURSUANT  TO  REGISTRATION  OR  EXEMPTION
                  THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED
                  TO  BEAR  THE  FINANCIAL  RISKS  OF  THIS  INVESTMENT  FOR  AN
                  INDEFINITE  PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY
                  REQUIRE  AN   OPINION   OF  COUNSEL  IN  FORM  AND   SUBSTANCE
                  SATISFACTORY  TO THE  ISSUER TO THE EFFECT  THAT ANY  PROPOSED
                  TRANSFER OR RESALE IS IN COMPLIANCE  WITH THE  SECURITIES  ACT
                  AND ANY APPLICABLE STATE SECURITIES LAWS.

                  THE SHARES  REPRESENTED BY THIS  CERTIFICATE  ARE SUBJECT TO A
                  180 DAY MARKET STANDOFF  RESTRICTION AS SET FORTH IN A CERTAIN
                  AGREEMENT  BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE
                  SHARES,  A COPY OF  WHICH  MAY BE  OBTAINED  AT THE  PRINCIPAL
                  OFFICE OF THE  ISSUER.  AS A RESULT OF SUCH  AGREEMENT,  THESE
                  SHARES MAY NOT BE TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE
                  DATE OF A PUBLIC  OFFERING  OF THE COMMON  STOCK OF THE ISSUER
                  HEREOF.  SUCH  RESTRICTION  IS BINDING ON TRANSFEREES OF THESE
                  SHARES.

                  9.2 STOP-TRANSFER INSTRUCTIONS. Grantee agrees that, to ensure
compliance  with the  restrictions  imposed by this  Agreement,  the Company may
issue  appropriate  "stop-transfer"  instructions to its transfer agent, if any,
and if the  Company  transfers  its  own  securities,  it may  make  appropriate
notations to the same effect in its own records.

                  9.3 REFUSAL TO TRANSFER. The Company shall not be required (i)
to transfer on its books any Shares that have been sold or otherwise transferred
in  violation  of any of the  provisions  of this  Agreement or (ii) to treat as
owner of such  Shares,  or to accord the right to vote or pay  dividends  to any
purchaser or other transferee to whom such Shares have been so transferred.

                                      -5-
<PAGE>

         10. TAX  CONSEQUENCES.  GRANTEE  UNDERSTANDS  THAT  GRANTEE  MAY SUFFER
ADVERSE TAX CONSEQUENCES AS A RESULT OF GRANTEE'S  ACQUISITION OR DISPOSITION OF
THE SHARES. GRANTEE REPRESENTS (i) THAT GRANTEE HAS CONSULTED WITH A TAX ADVISER
THAT GRANTEE DEEMS  ADVISABLE IN CONNECTION  WITH THE ACQUISITION OR DISPOSITION
OF THE SHARES AND (ii) THAT  GRANTEE IS NOT  RELYING ON THE  COMPANY FOR ANY TAX
ADVICE.

         11. COMPLIANCE WITH LAWS AND REGULATIONS.  The issuance and transfer of
the Shares shall be subject to and  conditioned  upon  compliance by the Company
and Grantee with all applicable  state and federal laws and regulations and with
all applicable  requirements of any stock exchange or automated quotation system
on which the Company's  common stock may be listed or quoted at the time of such
issuance or transfer.

         12.  SUCCESSORS  AND ASSIGNS.  The Company may assign any of its rights
under this  Agreement.  This  Agreement  shall be binding  upon and inure to the
benefit  of  the  successors  and  assigns  of  the  Company.   Subject  to  the
restrictions on transfer herein set forth,  this Agreement shall be binding upon
Grantee and Grantee's heirs, executors,  administrators,  legal representatives,
successors and assigns.

         13.  GOVERNING LAW;  SEVERABILITY.  This Agreement shall be governed by
and  construed in  accordance  with the internal  laws of the State of Nevada as
such laws are applied to agreements between Nevada residents entered into and to
be performed  entirely within Nevada,  excluding that body of laws pertaining to
conflict of laws. If any provision of this Agreement is determined by a court of
law to be illegal or unenforceable, then such provision shall be enforced to the
maximum extent  possible and the other  provisions  shall remain fully effective
and enforceable.

         14.  NOTICES.  Any  notice  required  to be given or  delivered  to the
Company  shall be in writing and  addressed  to the  Corporate  Secretary of the
Company at its principal  corporate offices.  Any notice required to be given or
delivered to Grantee shall be in writing and addressed to Grantee at the address
indicated  above or to such other  address as Grantee may  designate  in writing
from time to time to the Company.  All notices shall be deemed effectively given
upon  personal  delivery,  (i) three (3) days after deposit in the United States
mail by certified or registered  mail (return receipt  requested),  (ii) one (1)
business  day  after  its  deposit  with  any  return  receipt  express  courier
(prepaid),  or (iii) one (1)  business  day after  transmission  by facsimile or
email.

         15.  FURTHER  INSTRUMENTS.  The parties  agree to execute  such further
instruments  and to take such further  action as may be reasonably  necessary to
carry out the purposes and intent of this Agreement.

         16. HEADINGS; COUNTERPARTS. The captions and headings of this Agreement
are included for ease of reference only and shall be disregarded in interpreting
or construing this Agreement.  All references  herein to Sections shall refer to
Sections  of this  Agreement.  This  Agreement  may be executed in any number of
counterparts,  each of which when so executed and  delivered  shall be deemed an
original, and all of which together shall constitute one and the same agreement.

                                      -6-
<PAGE>

         17. ENTIRE AGREEMENT.  This Agreement  constitutes the entire agreement
and  understanding  of the parties  with  respect to the subject  matter of this
Agreement, and supersedes all prior understandings and agreements,  whether oral
or written,  between the parties  hereto with  respect to the  specific  subject
matter of this Agreement.

         WHEREOF,  the Company has caused this  Agreement  to be executed by its
duly authorized representative and Grantee has executed this Agreement as of the
Effective Date.

ENVISION SOLAR INTERNATIONAL, INC.             GRANTEE

By:
    ----------------------------------         ---------------------------------
                                               (Signature)

Desmond Wheatley                               Jack Schneider
--------------------------------------         ---------------------------------
(Please print name)                            (Please print name)

Chief Executive Officer
--------------------------------------
(Please print title)

                                      -7-
<PAGE>
                                 SPOUSE CONSENT

         The  undersigned  spouse of JACK  SCHNEIDER  (the  "GRANTEE") has read,
understands,  and hereby approves the Restricted  Stock Grant Agreement  between
Envision Solar  International,  Inc., a Nevada  corporation  (the "COMPANY") and
Grantee (the "AGREEMENT").  In consideration of the Company's granting my spouse
the right to purchase the Shares as set forth in the Agreement,  the undersigned
hereby agrees to be  irrevocably  bound by the Agreement and further agrees that
any community  property interest shall similarly be bound by the Agreement.  The
undersigned hereby appoints Grantee as my  attorney-in-fact  with respect to any
amendment or exercise of any rights under the Agreement.

Date:
------------------------------------      --------------------------------------
                                          Print Name of Grantee's Spouse

------------------------------------      --------------------------------------
(Please print name)                       Signature of Grantee's Spouse

                                          Address:
------------------------------------      --------------------------------------
(Please print title)
                                          --------------------------------------

                              /_/    Check this box if you do not have a spouse.

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