Document:

Exhibit 10.1

 

Lazydays
Holdings, Inc. 2018 Long Term Incentive Plan

 

Dated
January 16, 2018

 

Section
1.Purpose. The purpose of the Lazydays Holdings, Inc. 2018 Long Term Incentive Plan is to provide an incentive for
attracting, retaining and motivating officers, employees, directors and/or service providers and prospective officers, employees,
directors and/or service providers of the Company and/or its subsidiaries by aligning the interests of such individuals with the
success of the Company and to incentivize those parties to remain in the service of the Company and/or its subsidiaries by providing
for the grant of awards tied to the proprietary interests of the Company.

 

Section
2.Definitions. When used in this Plan, unless the context otherwise requires, the following terms shall have the meanings
set forth next to such terms:

 

(a)       “Applicable
Exchange” shall mean The Nasdaq Stock Market or such other securities exchange as may at the applicable time be the
principal market for the Shares.

 

(b)       “Award”
shall mean an award granted under this Plan as described in Section 5 hereof.

 

(c)       “Award
Agreement” shall mean a written or electronic agreement entered into between the Company and the Grantee in connection
with an Award (including any notice of an Award executed and delivered by the Company to a Grantee and which is countersigned
or acknowledged by such Grantee).

 

(d)       “Beneficial
Owner” means a “beneficial owner,” as such term is defined in Rule 13d-3 under the Exchange Act (or any
successor rule thereto).

 

(e)       “Board”
shall mean the Board of Directors of the Company.

 

(f)       “Cause”
shall, with respect to any Grantee, have the meaning assigned to such term (if so defined) in the employment agreement between
the Grantee and the Company Group, if any, or if the Grantee does not have an employment agreement with the Company Group, shall
mean (i) such Grantee’s failure to substantially perform the duties set forth in any agreement with the Company Group (other
than any such failure resulting from such Grantee’s Disability); (ii) such Grantee’s failure to carry out, or comply
with, in any respect any lawful directive of the Board; (iii) such Grantee’s commission at any time of any act or omission
that results in, or may reasonably be expected to result in, a conviction, plea of no contest, plea of nolo contendere, or imposition
of unadjudicated probation for any felony or crime involving moral turpitude; (iv) such Grantee’s unlawful use (including
being under the influence) or possession of illegal drugs on the Company Group’s premises or while performing such Grantee’s
duties and responsibilities; (v) such Grantee’s commission at any time of any act of fraud, embezzlement, misappropriation,
misconduct, conversion of assets of the Company Group, or breach of fiduciary duty against the Company Group (or any predecessor
thereto or successor thereof); (vi) such Grantee’s material breach of any agreement with the Company Group (including without
limitation, any breach of the restrictive covenants of any agreement); (vii) such Grantee’s neglect of the duties or services
such Grantee is to provide to the Company Group; (viii) such Grantee’s negligence or intentional harm to the Company Group;
or (ix) such Grantee’s willful misconduct or violation of any policy of the Company Group; provided, however, that
with respect to any failure, breach or neglect described in clauses (i), (ii), (vi) or (vii) above, and so long as such failure,
breach or neglect (as applicable) is curable, the Grantee shall have ten (10) days after receipt of written notice from the Company
Group in which to cure the failure, breach or neglect described in such notice, and the determination as to whether any such failure,
breach or neglect (as applicable) shall have been cured within such 10-day period shall be made by the Board. If the failure,
breach or neglect (as applicable) is not cured by the Grantee within such 10-day period (as determined by the Board), Cause shall
be deemed to have occurred.

 

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(g)       
“Change in Control” shall, unless otherwise determined by the Committee in the applicable Award Agreement,
meant the occurrence of any of the following:

 

(i)       any
Person or Group, other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the
Company or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company, is or becomes the Beneficial Owner, directly or indirectly, of more than fifty percent
(50%) of the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the
election of members of the Board (including by way of merger, consolidation or otherwise);

 

(ii)       the
consummation of a sale or disposition, in one or a series of related transactions, of all or substantially all of the assets of
the Company and its subsidiaries, taken as a whole, to any Person or Group;

 

(iii)       the
consummation of a merger, consolidation or reorganization of the Company (other than in which the stockholders of the Company,
immediately before such merger, consolidation or reorganization, own, directly or indirectly immediately following such merger,
consolidation or reorganization, at least fifty percent (50%) of the combined voting power of the outstanding voting securities
of the corporation resulting from such merger, consolidation or reorganization);

 

(iv)       the
approval by the stockholders of the Company of a complete liquidation or dissolution of the Company; or

 

(v)       during
any period of two (2) consecutive years, individuals who at the beginning of such period constituted the Board (together with
any new members of the Board whose election by such Board or whose nomination for election by the stockholders of the Company
was approved by a vote of a majority of the members of the Board of the Company, then still in office, who were either Directors
at the beginning of such period or whose election or nomination for election was previously so approved) (the “Incumbent
Board”) cease for any reason to constitute a majority of the Board then in office; provided that, any member of the
Board appointed or elected to the Board to avoid or settle a threatened or actual proxy contest shall in no event be deemed to
be an individual on the Incumbent Board.

 

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Notwithstanding
the above, in the event that an Award is “nonqualified deferred compensation” subject to Section 409A and Change in
Control is a payment, delivery or issuance event, or changes the time and form of payment, delivery or issuance, an event shall
not constitute a Change in Control for purposes of such payment, delivery or issuance (or change in time and form of payment)
unless that Change in Control also constitutes a “change in the ownership of a corporation,” a “change in the
effective control of a corporation,” or a “change in the ownership of a substantial portion of a corporation’s
assets,” in each case, within the meaning of Treasury Regulation Section 1.409A-3(i)(5) promulgated under Section 409A.

 

(h)       
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto
and the rules and regulations issued thereunder.

 

(i)       “Committee”
shall mean the Committee hereinafter described in Section 3 hereof.

 

(j)       “Common
Stock” shall mean the Company’s common stock, $0.001 par value per share.

 

(k)       “Company”
shall mean Lazydays Holdings, Inc., a Delaware corporation, or its successor.

 

(l)       “Company
Group” shall mean the Company and its direct and indirect majority owned subsidiaries. Any reference in this Plan and
in any Award Agreement to the “Company Group” shall mean and be a reference to all of the entities included in the
definition of Company Group on a collective basis and each entity included in the definition of Company Group on an individual
basis, unless otherwise specified in the Plan or such Award Agreement or the context otherwise requires.

 

(m)       “Disability”
with respect to any Grantee, except as may be otherwise determined by the Committee (taking into account any Section 409A considerations),
shall have the meaning given to such term in any employment agreement, consulting agreement or other similar agreement, if any,
to which such Grantee is a party, or, if there is no such agreement (or if any such agreement does not define disability), “Disability”
shall mean the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death, or which can be expected to last for a continuous period of not less than
twelve (12) months. The Committee shall have discretion to determine if a Disability has occurred.

 

(n)       “Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor thereto.

 

(o)       
“Fair Market Value” shall mean, unless otherwise determined by the Committee, the closing price of a Share
on the Applicable Exchange on the date of measurement or, if Shares were not traded or quoted on the Applicable Exchange on such
measurement date, then on the next preceding date on which Shares were traded or quoted, all as reported by such sources as the
Committee may select. If the Common Stock is not listed on a national securities exchange, Fair Market Value shall be determined
by the Committee using any reasonable method of valuation, taking into account, to the extent appropriate, Sections 409A and 422
of the Code.

 

(p)       “Grantee”
shall mean a person who receives an Award under the Plan.

 

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(q)       “Group”
means “group,” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act.

 

(r)       “Incentive
Stock Options” shall mean an Option that is intended to meet the requirements of Section 422 of the Code and that is
so designated in the applicable Award Agreement as an “incentive stock option” and that, in fact, so qualifies.

 

(s)       “Nonqualified
Stock Option” shall mean an Option that is not an Incentive Stock Option.

 

(t)       “Option”
shall mean a conditional right, granted under Section 8 hereof, to purchase Common Stock at a specified price at or during specified
time periods.

 

(u)       “Person”
means any “person,” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act.

 

(v)       “Plan”
shall mean this Lazydays Holdings, Inc. 2018 Long Term Incentive Plan, as set forth in this document and as such Plan may be amended,
supplemented, amended and restated or otherwise modified from time to time.

 

(w)       “Restricted
Stock” shall mean Common Stock granted in accordance with Section 7 hereof.

 

(x)       “Restricted
Stock Unit” shall mean a right to receive Common Stock or cash in an amount equal to the Fair Market Value of Common
Stock granted in accordance with Section 6 hereof.

 

(y)       “Section
409A” shall mean Section 409A of the Code and the rules and regulations and other guidance promulgated thereunder.

 

(z)       “Shares”
shall mean shares of Common Stock.

 

(aa)“Stock
Appreciation Right” shall mean a conditional right to receive the excess of the Fair Market Value of a Share on the
date the Stock Appreciation Right is exercised over the exercise price of the Stock Appreciation Right in accordance with Section
9 hereof.

 

(bb)
“Subsidiary Governing Body” shall mean the board of directors, board of managers or other governing body of
any subsidiary of the Company.

 

Section
3.Administration.

 

(a)       The
Plan shall be administered by the Compensation Committee of the Board or such other committee of the Board as the Board may designate
from time to time (the “Committee”), which shall be composed of not less than two directors. To the extent
required by applicable law, each member of the Committee shall be (i) a “Non-Employee Director” within the meaning
of Rule 16b-3 under the Exchange Act, (ii) an “outside director” within the meaning of Section 162(m) of the Code
and (iii) an “independent director” under the rules of any national securities exchange or national securities association,
as applicable. The members of the Committee shall be selected by, and serve at the pleasure of, the Board. Any member of the Committee
may resign by giving written notice thereof to the Board, and any member of the Committee may be removed at any time, with or
without cause, by the Board. Any vacancy on the Committee shall be filled by the Board, in its sole discretion.

 

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(b)       The
Committee shall have full power and authority to administer the Plan and such powers and authority as may be necessary or appropriate
for the Committee to carry out its functions as described herein, including, but not limited to, (i) select the individuals to
whom Awards may from time to time be granted and determine the types of Awards and terms and conditions of such Awards; (ii) exercise
all of the powers granted to it under the Plan; (iii) complete authority to construe, interpret, implement and administer the
Plan, any Awards granted under the Plan and any Award Agreements; (iv) prescribe, amend and rescind rules and regulations relating
to the Plan, any Awards granted under the Plan and any Award Agreements, including rules governing its own operations; (v) make
all determinations necessary or advisable in administering the Plan, any Awards granted under the Plan and any Award Agreements;
(vi) correct any defect, supply any omission and reconcile any inconsistency in the Plan, any Awards granted under the Plan or
in any Award Agreements; (vii) amend the Plan, any Awards granted under the Plan and any Award Agreements to reflect changes in
applicable law; (viii) delegate such powers and authority to such person as it deems appropriate with respect to the Plan, any
Awards granted under the Plan and any Award Agreements; (ix) determine whether any failure, violation, breach, act omission, occurrence,
fact, circumstance or matter constitutes Cause; (x) determine whether, to what extent and under what circumstances Awards may
be settled or exercised in cash, Common Stock, other Awards, other property, net settlement, or any combination thereof, or canceled,
forfeited or suspended, and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended;
(xi) waive any conditions under any Awards (including any such conditions contained in any Award Agreements); (xii) determine
the Fair Market Value; and (xiii) make any other determination and take any other action consistent with the Plan that the Committee
deems necessary or advisable for the administration of the Plan, whether or not expressly set forth herein.

 

(c)       The
Committee’s (or, if applicable, its delegates’) determinations under the Plan need not be uniform and may be made
by the Committee selectively among Grantees and potential Grantees, whether or not such persons are similarly situated. The determination
of the Committee on all matters relating to the Plan, any Awards granted under the Plan or any Award Agreement shall be final,
binding and conclusive. No member of the Committee shall be liable for any action or determination made by the Committee with
respect to the Plan, any Award Agreement or any Award.

 

(d)       The
Committee may employ counsel, consultants, accountants, appraisers, brokers or other persons at the expense of the Company. The
Committee, the Company and the officers and directors of the Company shall be entitled to rely upon the advice, opinions or valuations
of such persons.

 

Section
4.Eligibility for Awards. Awards under the Plan shall be made to such members of the Board and any Subsidiary Governing
Body and such officers, employees, service providers and prospective officers, employees and service providers of the Company
Group as the Committee selects in its sole discretion. Notwithstanding the foregoing, Incentive Stock Options may only be granted
to employees of the Company Group in accordance with Section 422 of the Code.

 

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Section
5.Awards Under the Plan.

 

(a)        Subject
to adjustment as provided in Section 15, the total number of shares of Common Stock authorized for Awards granted under the Plan
shall be thirteen percent (13%) of the Company’s Shares outstanding on a fully diluted basis as of the closing of the consummation
of the transactions contemplated by that certain Agreement and Plan of Merger, dated as of October 27, 2017, by and among Andina
Acquisition Corp. II, Andina II Holdco Corp., Andina II Merger Sub Inc., Lazy Days’ R.V. Center, Inc. and A. Lorne Weil
(“Closing Date. Notwithstanding the forgoing, if the Fair Market Value per Share immediately following the Closing Date
is greater than $8.75 per Share the number of Shares authorized for Awards granted under the Plan shall be increased automatically
based on a formula[1], but not in excess of eighteen percent (18%) of the Company’s Shares then outstanding on a fully-diluted
basis. The maximum number of Shares, subject to adjustment in Section 15, which may be made the subject of Options that are incentive
stock options shall not exceed the maximum number of Shares provided in the immediately prior two sentences. If any Shares subject
to an Award are forfeited, repurchased or reacquired by the Company pursuant to the Plan or the applicable Award Agreement, or
if any Award has expired, terminated or been cancelled for any reason whatsoever or otherwise terminates without issuance of Shares
or is settled for cash (in whole or part), then such Shares shall again be available to be issued hereunder pursuant to the terms
and conditions of the Plan. 

 

(b)       Awards
may be made under the Plan in the form of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, warrants
or other securities which may be convertible, exercisable or exchangeable for or into Common Stock or cash, or securities that
may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to Common Stock,
as the Committee determines is in the interest of the Company. Nothing herein contained shall be construed to prohibit the issuance
of Awards at different times to the same person.

 

(c)       Each
Award granted under the Plan shall be evidenced by an Award Agreement which shall contain such provisions (such as vesting, and
manner and method of conversion, exchange or exercise (to the extent applicable)) as the Committee in its discretion deems necessary
or desirable, consistent with the terms of this Plan. The duration of any Award that is convertible, exchangeable or exercisable
for or into Common Stock shall have a duration that is fixed by the Committee, in its sole discretion, but in no event shall such
Award remain in effect for a period of more than ten (10) years (five (5) years for grants of Incentive Stock Options to 10% stockholders
in accordance with Section 422 of the Code) from the date of grant.

 

		 (1) 	 The
                                         formula is ((X-Y)/Y)*(number of Shares that represent 13% of fully diluted Shares as
                                         of Closing Date). X is the value of one option (for one Share) with an exercise price
                                         of $8.75, and Y is the value of one option (for one Share) with an exercise price at
                                         Fair Market Value of one Share. Options shall be valued using the Black-Scholes valuation
                                         method, assuming 40% volatility, a risk free rate equal to the 3-month Treasury Bill
                                         and a 5-year term. 

 

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Section
6.Restricted Stock Units.

 

(a)       The
Committee shall have the authority to grant an Award of Restricted Stock Units, in such amounts and subject to such terms and
conditions as the Committee may determine in its discretion, not inconsistent with the terms of the Plan.

 

(b)       Each
Restricted Stock Unit granted under the Plan shall represent a right to receive, on the applicable delivery date determined by
the Committee and specified in the Award Agreement, one Share or cash in an amount equal to the Fair Market Value of one Share
on such delivery date.

 

(c)       Restricted
Stock Units granted hereunder shall be subject to such conditions and risk of forfeiture as the Committee may determine at the
time the Award is granted, which such conditions and risk of forfeiture may be based on continuing employment or service with
the Company Group, achievement of pre-established performance objectives, a combination of such conditions or such other conditions
as the Committee shall consider appropriate in its discretion.

 

(d)       The
Grantee shall have no rights as a shareholder of the Company with respect to any Restricted Stock Units, unless and until such
Restricted Stock Units are settled in Common Stock.

 

Section
7.Restricted Stock

 

(a)       The
Committee shall have the authority to grant an Award of Restricted Stock, in such amounts and subject to such terms and conditions
as the Committee may determine in its discretion, not inconsistent with the terms of the Plan.

 

(b)       Except
as otherwise set forth in the applicable Award Agreement, the Grantee of Restricted Stock shall generally have the rights and
privileges of a holder of Common Stock. At the discretion of the Committee and provided in an Award Agreement, dividends and distributions
on Common Stock, if any, with respect to Restricted Stock may be either currently paid to the Grantee or withheld by the Company
for the Grantee’s account. Each Grantee of Restricted Stock shall be a shareholder of the Company.

 

(c)       Restricted
Stock granted hereunder shall be subject to such conditions and risk of forfeiture as the Committee may determine at the time
the Award is granted, which such conditions and risk of forfeiture may be based on continuing employment or service with the Company
Group, achievement of pre-established performance objectives, a combination of such conditions or such other conditions as the
Committee shall consider appropriate in its discretion.

 

(d)       Shares
of Restricted Stock are actual shares of Common Stock issued to a Grantee and shall be evidenced in such manner as the Committee
may deem appropriate, including book-entry registration or issuance of one or more stock certificates. Any certificate issued
in respect of shares of Restricted Stock shall be registered in the name of the applicable Grantee and shall bear an appropriate
legend referring to the terms, conditions and restrictions applicable to such Award. The Committee may require that the certificates
evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed.

 

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Section
8.Options

 

(a)       The
Committee shall have the authority to grant an Award of Options, in such amounts and subject to such terms and conditions as the
Committee may determine in its discretion, not inconsistent with the terms of the Plan.

 

(b)       The
price per Share to be purchased pursuant to the exercise of any Option shall be fixed by the Committee at the time of grant; provided,
however, that the exercise price per Share to be purchased pursuant to the exercise of an Option shall, in accordance with
Section 409A, not be less than the Fair Market Value of a share of Common Stock on the date on which the Option is granted if
it is intended for such Option to be exempt from Section 409A. Notwithstanding the foregoing, an Incentive Stock Option granted
to a ten percent stockholder shall have an exercise price of at least one hundred ten percent (110%) of the Fair Market Value
of a Share on the date of grant.

 

(c)       At
the time of grant, the Committee shall designate whether the Option is to be an Incentive Stock Option or a Nonqualified Stock
Option; provided, however, that if the Award Agreement contains no indication, the Option shall be a Nonqualified Stock
Option. Notwithstanding the foregoing, the Company shall have no liability to any Grantee or any other person if an Option designated
as an Incentive Stock Option fails to qualify as such at any time.

 

(d)       Options
granted hereunder shall contain such terms and conditions as the Committee shall deem appropriate in its discretion. The vesting
of any such Option shall be as provided in the applicable Award Agreement and may relate to performance of the Company Group,
continuing employment or service with the Company Group, a combination of the foregoing or such other terms and conditions as
deemed appropriate by the Committee in its discretion.

 

(e)       An
Option, after the grant thereof, shall be exercisable by the Grantee (or such other person entitled to exercise the Option or
such portion of the Option) at such rate and times as may be fixed at the time of grant by the Committee.

 

(i)       An
Option shall be exercised, in whole or in part, by the delivery of a written exercise notice, in a form reasonably satisfactory
to the Committee, duly signed by the Grantee (or such other person entitled to exercise the Option or such portion of the Option)
to such effect or through such other procedures established by the Committee or the Company’s third party administrator),
together with the Award Agreement and the full purchase price of the Common Stock purchased pursuant to the exercise of the Option,
to the Committee or an officer of the Company appointed by the Committee for the purpose of receiving the same. The payment of
the full purchase price shall be made as follows: (A) in cash; (B) by cashier’s check payable to the order of the Company;
(C) if the Committee, in its discretion, so permits, by delivery to the Company of Common Stock which shall be valued at their
Fair Market Value on the date of exercise of the Option (provided, however, that a holder may not use any Common
Stock to pay the purchase price unless the holder has beneficially owned such Common Stock for at least six months); (D) a cashless
exercise program that the Committee may approve, from time to time in its discretion, pursuant to which a Grantee may elect to
concurrently provide irrevocable instructions (i) to such Grantee’s broker or dealer to effect the immediate sale of the
purchased Shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover
the exercise price of the Option plus all applicable taxes required to be withheld by the Company by reason of such exercise,
and (ii) to the Company to deliver the certificates for the purchased Shares directly to such broker or dealer in order to complete
the sale or (E) by such other methods as the Committee may, in its discretion, permit from time to time. In the event that the
Option shall be exercised pursuant to Section 13 by any person other than the Grantee, appropriate proof of the right of such
person to exercise the Option must be delivered together with the written exercise notice.

 

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(ii)       Notwithstanding
any other provision of the Plan or of any Option, no Option granted pursuant to the Plan may be exercised at any time when the
Option or the granting or exercise thereof violates any law or governmental order or regulation.

 

(iii)       The
Grantee shall have no rights as a stockholder of the Company with respect to the Common Stock subject to such Option unless and
until such Grantee shall have exercised such Option, paid the exercise price (and any applicable withholding taxes) and become
a holder of record of the purchased Common Stock.

 

Section
9.Stock Appreciation Rights

 

(a)       The
Committee shall have the authority to grant an Award of Stock Appreciation Rights, in such amounts and subject to such terms and
conditions as the Committee may determine in its discretion, not inconsistent with the terms of the Plan.

 

(b)       A
Stock Appreciation Right is a right to receive payment in Common Stock and/or cash equal to the excess of the Fair Market Value
of a Share on the date the Stock Appreciation Right is exercised over the exercise price of the Stock Appreciation Right, multiplied
by the number of Shares with respect to which the Stock Appreciation Right is exercised.

 

(c)       The
exercise price of a Stock Appreciation Right shall be fixed by the Committee at the time of grant; provided, however, that
the exercise price of each Stock Appreciation Right shall, in accordance with Section 409A, not be less than the Fair Market Value
of a Share on the date on which the Stock Appreciation Right is granted if it is intended for such Stock Appreciation Right to
be exempt from Section 409A.

 

(d)       Stock
Appreciation Rights granted hereunder shall contain such terms and conditions as the Committee shall deem appropriate. The vesting
of any Stock Appreciation Rights shall be as provided in the applicable Award Agreement and may relate to performance of the Company
Group, continuing employment or service with the Company Group, a combination of the foregoing or such other terms and conditions
as deemed appropriate by the Committee in its discretion.

 

(e)       A
Stock Appreciation Right, after the grant thereof, shall be exercisable by the Grantee (or such other person entitled to exercise
the Stock Appreciation Right or such portion of the Stock Appreciation Right) at such rate and times as may be fixed at the time
of grant by the Committee.

 

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(i)       A
Stock Appreciation Right shall be exercised, in whole or in part, by the delivery of a written exercise notice, in a form reasonably
satisfactory to the Committee, duly signed by the Grantee (or such other person entitled to exercise the Stock Appreciation Right
or such portion of the Stock Appreciation Right) to such effect, together with the Award Agreement, to the Committee or an officer
of the Company appointed by the Committee for the purpose of receiving the same. In the event that the Stock Appreciation Right
shall be exercised pursuant to Section 13 by any person other than the Grantee, appropriate proof of the right of such person
to exercise the Stock Appreciation Right must be delivered together with the written exercise notice.

 

(ii)       Notwithstanding
any other provision of the Plan or of any Stock Appreciation Rights, no Stock Appreciation Rights granted pursuant to the Plan
may be exercised at any time when the Stock Appreciation Rights or the granting or exercise thereof violates any law or governmental
order or regulation.

 

(iii)       The
Grantee shall have no rights as a stockholder of the Company with respect to any Common Stock, unless and until such Grantee shall
have exercised his or her Stock Appreciation Right, and then only if and to the extent such Stock Appreciation Rights are settled
in Common Stock and the Grantee becomes a holder of record of Common Stock acquired pursuant to the exercise of the Stock Appreciation
Right.

 

Section
10.Performance Awards.

 

(a)       The
Committee shall have the authority to grant Awards that are subject to certain performance objectives. Such Awards may be awards
that qualify as “qualified performance-based compensation” for purposes of Section 162(m) of the Code as well as performance
awards that do not meet the requirements of Section 162(m) of the Code, as designated by the Committee at the time of grant.

 

(b)
The performance objectives for Awards may be based upon one or more of the following criteria, as selected by the Committee and
specified at the time of grant: (i) consolidated income before or after taxes; (ii) EBITDA; (iii) adjusted EBITDA; (iv) net operating
income; (v) net income; (vi) net income per Share; (vii) book value per Share; (viii) total shareholder return; (ix) expense management;
(x) return on investment; (xi) improvements in capital structure; (xii) profitability of an identifiable business unit; (xiii)
maintenance or improvement of debt to equity ratio or other ratios; (xiv) stock price; (xv) funds from operations, as the same
may or may not be adjusted; (xvi) cash flow; (xvii) working capital; and (xviii) for Awards not intended to comply with the performance
exception under Section 162(m) of the Code, such other standards as determined by the Committee in its sole discretion. Performance
objectives may be in respect of the performance of the Company and its Subsidiaries (which may be on a consolidated basis), or
a Subsidiary, and may be applied on an absolute basis and/or be relative to one or more peer group companies or indices, or any
combination thereof, all as the Committee shall determine. In addition, to the degree consistent with Section 162(m) of the Code
(or any successor section thereto), the performance objectives may be calculated without regard to extraordinary items.

 

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(b)
In the case of any Awards that are intended to qualify as “qualified performance-based compensation” under Section
162(m) of the Code, any performance criteria applicable to the Award will be able to be objectively determined by the Committee
and the Committee shall approve the extent to which any performance criteria have been satisfied, and the amount payable as a
result thereof, prior to payment, settlement or vesting. For Awards not intended to comply with the qualified performance-based
compensation exception under Section 162(m) of the Code, prior to the end of a performance cycle, the Committee, in its discretion,
may adjust the performance objectives to reflect a change in capitalization or any other event which may materially affect the
performance of the Company or a Subsidiary, including, but not limited to, market conditions or a significant acquisition or disposition
of assets or other property by the Company or a Subsidiary. For Awards intended to comply with the qualified performance-based
compensation exception under Section 162(m) of the Code, the Committee shall establish the performance goals for each such Award
within the time periods required under Section 162(m) of the Code and, once established, the performance goals will not be changed
or modified during the performance cycle except to the extent permitted under Section 162(m) for “qualified performance-based
compensation” or to the extent compliance with such requirements is not desired. A performance cycle shall mean the time
period specified by the Committee at the time an Award that is subject to performance criteria is granted during which the performance
of the Company and/or a Subsidiary will be measured.

 

Section
11.Other Awards. The Committee is authorized to grant such other Awards that may be denominated or payable in, valued
in whole or in part by reference to, or otherwise based on, or related to, Common Stock, as deemed by the Committee to be consistent
with the purposes of the Plan.

 

Section
12.Change in Control.

 

(a)       Except
as provided in an Award Agreement, upon the occurrence of a Change in Control which occurs while the Grantee is still employed
by, or, for a member of the Board or a consultant of the Company Group, in service with, the Company Group, all of the Grantee’s
unvested Awards shall immediately become vested and/or exercisable, convertible or exchangeable, as applicable.

 

(b)       In
addition, in the event of the consummation of a reorganization of the Company, a merger, consolidation or other business combination
of the Company with or into any other entity, a, sale or other disposition of all or substantially all of the assets of the Company,
the purchase of assets or stock of another entity, or other similar corporate transaction, including but not limited to, a Change
in Control, with respect to any Award that is denominated or valued with respect to, or convertible, exchangeable or exercisable
for or into, Common Stock, the Committee may, in its sole discretion, (i) provide for the assumption of such Awards theretofore
granted, or the substitution for such Awards of new awards of the successor company or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kinds of shares and related exercise, conversion or purchase prices, consistent with Section
15 hereof; (ii) provide written notice to any holder of such Award that the Award shall be terminated to the extent that it is
not converted, exchanged or exercised prior to a date certain specified in such notice (which date shall be no sooner than the
consummation of any such transaction) or (iii) provide that the holder of any such Award, to the extent then vested, shall be
entitled to receive from the Company an amount equal to the product of (A) the excess, if any, of (x) the Fair Market Value of
a share of Common Stock (determined on the basis of the amount received by a holder of Common Stock in connection with such transaction
and consistent with Section 409A, if applicable) with respect to a share of Common Stock over (y) the purchase price, exercise
price or conversion price which would be payable or otherwise applicable for a share of Common Stock upon the conversion, exchange
or exercise of such Award and (B) the number of shares of Common Stock subject to the vested portion of the Award not theretofore
converted, exchanged or exercised. Any actions under this Section 12 shall, to the extent applicable, be in accordance with the
regulations promulgated under Section 409A and Section 424, as applicable, so as not to cause a modification or deemed new grant
of the Award.

 

    	11

    	 

    

 

Section
13.Restrictions on Transfer. Except as otherwise provided in an Award Agreement or pursuant to the laws of descent
and distribution,

 

(a)       No
Awards of Common Stock may be transferred until vested; provided, however, that the Grantee may Transfer such unvested
Awards to any one or more of the Grantee’s family members if agreed to by the Committee and, as a condition to such transfer,
the Transferee shall execute and deliver to the Company (i) a written undertaking, in form and substance satisfactory to the Committee,
that such transferee shall transfer any Awards (vested or unvested) back to the Grantee if such transferee ceases to be a family
member of such Grantee and (ii) a written agreement acknowledging that such transferred Award is subject to vesting, may never
become vested and is subject to the terms and conditions of the Plan and the Award Agreement. Any proposed transfer of vested
Awards of Common Stock shall be in accordance with the Award Agreement.

 

(b)       Awards
that are denominated or valued with respect to, or convertible, exchangeable or exercisable for or into, Common Stock may not
be transferred at any time prior to settlement, conversion, exercise or exchange thereof.

 

Section
14.Section 409A of the Code. It is intended that all Awards under this Plan and any Award Agreement, either be exempt
from or comply with Section 409A so as to avoid taxation under Section 409A and the regulations and rules thereunder. Any ambiguity
in this Plan and any Award Agreement shall be interpreted to comply with the foregoing. To the extent applicable, (i) each amount
or benefit payable pursuant to this Plan and any Award Agreement shall be deemed a separate payment for purposes of Section 409A
and (ii) in the event the equity of the Company is publicly traded on an established securities market or otherwise and the Grantee
is a “specified employee” (as determined under the Company’s administrative procedure for such determinations,
in accordance with Section 409A) at the time of the Grantee’s termination of employment, any payments under this Plan or
any Award Agreement that are payable upon termination of employment and deemed to be deferred compensation subject to Section
409A shall not be paid or begin payment until the earlier of the Grantee’s death and the first day following the six (6)
month anniversary of the Grantee’s date of termination of employment. For any Awards that are nonqualified deferred compensation
subject to Section 409A, any iteration of the word “termination” (e.g., “terminated”) with respect to
a Grantee’s employment or service, shall mean a separation from service within the meaning of Section 409A and the regulations
thereunder. Notwithstanding the foregoing, neither the Company Group, any shareholder of the Company nor any of their respective
affiliates shall be liable for, and each Grantee shall be solely liable and responsible for, any taxes (or interest or penalties)
that may be imposed on such Grantee under Section 409A with respect to such Grantee’s receipt of any Award and payment thereunder.

 

    	12

    	 

    

 

Section
15.Adjustment. In the event of any dividend or other distribution (whether in the form of cash, Common Stock, other
securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition
of all or substantially all of the assets or stock of the Company, or exchange of Common Stock or other securities of the Company,
issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction
or event (an “Event”), and, in the Committee’s opinion, such Event affects the Common Stock such that
an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan or with respect to an Award, then the Committee may, in its sole
and absolute discretion and in such manner as it may deem equitable, adjust any or all of the following: (i) the number and kind
of shares of Common Stock (or other securities or property) with respect to which Awards may be granted or awarded; (ii) the number
and kind of shares of Common Stock (or other securities or property) subject to outstanding Awards; and (iii) the grant or exercise
price with respect to any Award. Any such adjustments shall be made in accordance with Section 409A and Section 424 of the Code
(to the extent applicable) unless otherwise determined by the Committee in its sole discretion. For the avoidance of doubt, in
no event shall any regularly scheduled distribution or dividend paid pursuant to a distribution or dividend policy established
by the Board constitute extraordinary dividends or extraordinary distributions.

 

Section
16.Amendment, Suspension or Termination of the Plan. The Board may from time to time suspend, discontinue, terminate,
revise or amend (i) the Plan in any respect whatsoever and (ii) any Award Agreement, to the extent provided in such Award Agreement;
provided, however, that in no event shall any such action adversely affect the rights of any Grantee in any material respect
(without regard to any effect resulting from the individual circumstances of such Grantee) with respect to any previously granted
Award without such Grantee’s consent, except to the extent such action is required by, or is necessary to comply with, law;
provided, further, that no amendment shall be made without the approval of the Company’s stockholders to the extent
such approval is required by applicable law or the listing standards of the Applicable Exchange. No Awards shall be made under
the Plan after the tenth anniversary of the Effective Date.

 

Section
17.Income Tax Withholding. If the Company determines it is required to withhold any amounts by reason of any federal,
state or local tax rules or regulations in respect of any Award, the Company shall be entitled to deduct and withhold such amounts
from any cash payments to be made to the holder of such Award. In any event, the holder shall pay to the Company or make arrangements
satisfactory to the Company, promptly when requested by the Company, sufficient funds to meet the requirements of such withholding;
and the Company shall be entitled to take and authorize such steps as it may deem advisable in order to have such funds made available
to the Company out of any funds or property (including, if permitted by the Committee in its sole discretion, Common Stock that
would otherwise be issuable to the holder pursuant to the Award) due or to become due to the holder of such Award. Such withholding
taxes may be paid by the withholding of Common Stock which would be paid or delivered pursuant to such grant or exercise of the
Award only if permitted by the Committee, in its discretion. Notwithstanding the foregoing or anything else in the Plan to the
contrary, in no event may Common Stock with a Fair Market Value in excess of the legally required withholding amount based on
the minimum statutory withholding rates (or, as permitted by the Company, such other rate as will not cause adverse accounting
consequences and is permitted under applicable tax withholding rules) for federal and state tax purposes that are applicable to
such supplemental taxable income be withheld for the payment of tax obligations (in whole or part). The Committee may establish
such procedures as it deems appropriate for the settlement of withholding obligations with respect to an Award.

 

    	13

    	 

    

 

Section
18.General Provisions.

 

(a)       No
Right to Employment or Service. Nothing contained in this Plan, any Award Agreement or the Shareholder Agreement shall confer
upon any Grantee the right to continue in the employ of, or association with, the Company Group or any affiliate of the Company
Group, or affect any rights which the Company Group or any such affiliate may have to terminate such employment or association
for any reason at any time.

 

(b)       Non-Uniform
Determinations. The Committee’s determinations of Awards under the Plan need not be uniform and may be made by it selectively
among persons who receive or are eligible to receive Awards (whether or not such persons are similarly situated). Without limiting
the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations,
and to enter into non-uniform and selective Award Agreements, as to the person to receive Awards under the Plan, and the terms
and provisions of any Awards granted under the Plan.

 

(c)       Freedom
of Action. Nothing contained in the Plan, any Award or any Award Agreement hereunder shall be construed to prevent the Company
Group or any affiliate of the Company Group or any of the holders of Shares from taking any corporate action, including, but not
limited to, any recapitalization, reorganization, merger, consolidation, dissolution or sale, which is deemed by the Company Group,
any such affiliate or any such holder of Shares to be appropriate or in its or their best interest, whether or not such action
would have an adverse effect on the Plan or any Awards thereunder.

 

(d)       Section
Headings; Construction. The section headings contained herein are for the purpose of convenience only and are not intended
to define or limit the contents of the sections. All words used in this Plan shall be construed to be of such gender or number,
as the circumstances require. Unless otherwise expressly provided, the word “including” does not limit the preceding
words or terms.

 

(e)       Governing
Law. This Plan, any Award, and any Award Agreement hereunder and any conflicts arising hereunder or thereunder or related
hereto or thereto shall be governed by, and construed under, the laws of the State of Delaware, all rights and remedies being
governed by said laws, regardless of the laws that might otherwise govern under applicable principles, to the fullest extent permitted
by law, of conflicts of laws.

 

    	14

    	 

    

 

(f)       Confidentiality.
By acceptance of an Award, each Grantee agrees to maintain in confidence and not disclose the terms of this Plan, any Award granted
hereunder or any Award or any Award Agreement (except to the extent required by law or to the Grantee’s immediate family
and his or her professional advisors).

 

(g)       Severability;
Entire Agreement. In the event any provision of this Plan, any Award Agreement or any Award shall be held illegal, invalid
or unenforceable for any reason, the illegality, invalidity or unenforceability shall not affect the remaining provisions of this
Plan, such Award or such Award Agreement (as applicable) and such illegal, invalid or unenforceable provision shall be deemed
modified as if the illegal, invalid or unenforceable provision had not been included. The Plan, any Award Agreement and the Shareholder
Agreement contain the entire agreement of the parties with respect to the subject matter hereof and thereof and supersede all
prior agreements, promises, covenants, arrangements, communications, representations and warranties between them, whether written
or oral, with respect to the subject matter hereof and thereof.

 

(h)       Survival
of Terms; Conflicts. The provisions of this Plan shall survive the termination of this Plan to the extent consistent with,
or necessary to carry out, the purposes thereof. To the extent of any conflict between the Plan, any Award Agreement and the Shareholder
Agreement, the Shareholder Agreement shall control; provided, however, that the Plan may impose greater restrictions or
grant lesser rights than the Shareholder Agreement; and provided, further, that any Award Agreement may impose greater
restrictions or grant lesser rights than either the Shareholder Agreement or the Plan. Subject to the second proviso in the immediately
preceding sentence, in the event of any conflict between the Plan and any Award Agreement, the Plan shall control.

 

(i)       No
Third Party Beneficiaries. Except as expressly provided herein or therein, none of the Plan, any Award Agreement or the Shareholder
Agreement shall confer on any person other than the Company and the Grantee any rights or remedies thereunder.

 

(j)       Successors
and Assigns. The terms of this Plan shall be binding upon and inure to the benefit of the Company, its subsidiaries and their
successors and assigns.

 

(k)       Notices.
All notices, requests, waivers and other communications under the Plan or any Award Agreement shall be in writing and shall be
deemed to be effectively given, sent, provided, delivered or received (i) when personally delivered to the party to be notified,
(ii) when sent by confirmed facsimile or by electronic mail (“e-mail”) to the party to be notified, (iii) three
(3) business days after deposit in the United States mail, postage prepaid, by certified or registered mail with return receipt
requested, addressed to the party to be notified or (iv) one (1) Business Day after deposit with a national overnight delivery
service, postage prepaid, addressed to the party to be notified with next-business day delivery guaranteed, in each case sent
or addressed to the Company at its principal office and to the Grantee at the Grantee’s mailing address, facsimile number
or e-mail address as carried in the record books of the Company or at such other mailing address, facsimile number or e-mail address
as the Grantee may from time to time designate in writing to the Company.

 

    	15

    	 

    

 

(l)       Unfunded
Plan. Unless otherwise provided in an Award Agreement, Awards payable under the Plan shall be payable in Shares or from the
general assets of the Company and no special or separate reserve, fund or deposit shall be made to assure payment, delivery or
issuance of such Awards. No Grantee or other person shall have any right, title or interest in any fund or in any specific asset
(including shares of Common Stock, except as expressly otherwise provided) of the Company or any subsidiary of the Company by
reason of any Award hereunder. To the extent that a Grantee or other person acquires a right to receive payment, delivery or issuance
pursuant to any Award, such right shall be no greater than the right of any unsecured general creditor of the Company.

 

(m)       Clawback.
Notwithstanding any other provision of this Plan or any Award Agreement to the contrary, all Awards (and/or any amount received
with respect to such Awards) shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to
comply with applicable law, stock exchange listing requirements, or any recoupment policy of the Company. In addition, the Committee
may, in its sole discretion, specify in an Award Agreement that the Grantee’s rights, payments and benefits with respect
to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events,
in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not
be limited to, termination of employment or services for cause, termination of the Grantee’s provision of services to the
Company or any of its subsidiaries, breach of noncompetition, confidentiality or other restrictive covenants that may apply to
the Grantee, or restatement of the Company’s financial statements to reflect adverse results from those previously released
financial statements, as a consequence of errors, omissions, fraud, or misconduct

 

(n)       Issuance
of Shares and Compliance with Securities Act. If at any time counsel to the Company shall be of the opinion that any sale
or delivery of Shares pursuant to Award is or may in the circumstances be unlawful or result in the imposition of excise taxes
on the Company under the statutes, rules or regulations of any applicable jurisdiction, the Company shall have no obligation to
make such sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the
Securities Act or otherwise, with respect to Shares or Awards, and the right to exercise any Option or other Award shall be suspended
until, in the opinion of said counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes
on the Company. Upon termination of any period of suspension under this Section, any Award affected by such suspension which shall
not then have expired or terminated shall be reinstated as to all shares available before such suspension and as to shares which
would otherwise have become available during the period of such suspension, but no such suspension shall extend the term of such
Award unless provided in the Award Agreement.

 

(o)       Effective
Date. The Plan was approved by the Board on January 16, 2018, subject to approval by the Company’s shareholders, and
will become effective upon the date of such shareholder approval. No Awards shall be granted under the Plan beyond ten (10) years
after the date the Board approved the Plan, but Awards granted on or before the expiration of the Plan shall remain valid in accordance
with their terms, and may extend beyond such expiration date. At the time an Award is made or amended or the terms or conditions
of an Award are changed in accordance with the terms of the Plan or the Award Agreement, the Committee may provide for limitations
or conditions on such Award.

 

    	16EXHIBIT 10.1

 

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THIS PROMISSORY NOTE HAS BEEN SOLD IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

ENVISION SOLAR INTERNATIONAL, INC.

 

PROMISSORY NOTE

 

	Issuance
    Date: August 27, 2018	Date:  Principal Amount: $750,000

 

Note
No. EVSI-GEMAUG2018

 

FOR
VALUE RECEIVED, Envision Solar International, Inc., a Nevada
corporation (the "Company"), hereby promises to pay to the order of Gemini
Special Opportunities Fund, LP or registered assigns (the "Holder")
the amount set out above as Principal Amount (the "Principal") when due, whether upon the Maturity Date (as defined below),
acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest (the "Interest")
on any outstanding Principal at the applicable Interest Rate from the date set out above as the Issuance Date (the "Issuance
Date") until the same becomes due and payable, upon the Maturity Date. 

 

The Principal Amount is
$750,000 (seven hundred and fifty-thousand dollars) and the Holder shall pay $750,000 upon closing of this Note. For purposes hereof,
the term “Outstanding Balance” means the Principal Amount, as reduced or increased, as the case may be, pursuant
to the terms hereof, breach hereof or otherwise, plus any accrued but unpaid interest, collection and enforcements costs, and any
other fees or charges incurred under this Note.

 

(1) GENERAL TERMS

 

(a) Payment of Principal.
The "Maturity Date" shall be February 28, 2019.

 

(b) Interest. Interest
shall accrue at an annual rate of ten percent (10%) (the “Interest Rate”). Interest hereunder shall be paid
on the Maturity Date to the Holder or its assignee in whose name this Note is registered on the records of the Company regarding
registration and transfers of Notes.

 

(c) Security. This
Note shall not be secured by any collateral or any assets pledged to the Holder.

 

(d) Repayment. The Company
will be allowed to repay the Note to the Holder in whole or in part at any time prior to the Maturity Date. Upon any repayment
of the Note on or prior to November 28, 2018, the Company shall pay 105% of the Principal Amount plus accrued Interest. Upon any
repayment of the Note after November 28, 2018, including repayment on the Maturity Date, the Company shall pay 115% of the Principal
Amount plus accrued Interest.

    	1 of 4 

    	 

    

(2) EVENTS OF DEFAULT.

 

(a) An “Event of Default”,
wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary
or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of
any administrative or governmental body):

 

(i) The Company's failure
to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this Note (including, without limitation,
the Company's failure to pay any redemption payments or amounts hereunder);

 

(ii) The Company or any
subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary of the Company under
any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company or any subsidiary
of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution,
insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or any
subsidiary of the Company or there is commenced against the Company or any subsidiary of the Company any such bankruptcy, insolvency
or other proceeding which is not dismissed for a period of sixty-one (61) days; or the Company or any subsidiary of the Company
is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or
the Company or any subsidiary of the Company suffers any appointment of any custodian, private or court appointed receiver or the
like for it or any substantial part of its property which continues undischarged or not stayed for a period of sixty-one (61) days;
or the Company or any subsidiary of the Company makes a general assignment for the benefit of creditors; or the Company or any
subsidiary of the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally
as they become due; or the Company or any subsidiary of the Company shall call a meeting of its creditors with a view to arranging
a composition, adjustment or restructuring of its debts; or the Company or any

subsidiary of the Company shall by any act or
failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other
action is taken by the Company or any subsidiary of the Company for the purpose of effecting any of the foregoing;

 

(iii) The Company or any
subsidiary of the Company shall default in any of its obligations under any other note or any mortgage, credit agreement or other
facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be
secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement of the
Company or any subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness now exists or shall hereafter
be created; and

 

(iv) The Company’s
Common Stock is suspended or delisted for trading from its current primary trading market (the “Primary Market”).

 

(v) The Company’s
Common Stock trades at or below a price of $0.01 on its Primary Market.

 

(vi) The Company loses its
status as “DTC Eligible.”

 

(vii) The Company shall
become late or delinquent in its filing requirements as a fully-reporting issuer registered with the Securities & Exchange
Commission.

 

(b) Upon the occurrence of
any Event of Default, the Outstanding Balance shall immediately increase to 110% of the Outstanding Balance immediately prior to
the occurrence of the Event of Default (the “Default Effect”). The Default Effect shall automatically apply upon the
occurrence of an Event of Default without the need for any party to give any notice or take any other action. Upon the occurrence
of any Event of Default, the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full

    	2 of 4 

    	 

    

 

satisfaction of its obligations hereunder, the
Outstanding Balance, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs,
including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights
and remedies available at law or in equity.

 

(3) REISSUANCE OF THIS
NOTE.

 

a) Assignability. The
Company may not assign this Note. This Note will be binding upon the Company and its successors and will inure to the benefit of
the Holder and its successors and assigns and may be assigned by the Holder to anyone of its choosing without Company’s approval.

 

(b) Lost, Stolen or Mutilated
Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in
customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver
to the Holder a new Note representing the outstanding Principal.

 

(4) NOTICES. Any
notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party) (iii)
upon receipt, when sent by email; or (iv) one (1) Business Day after deposit with a nationally recognized overnight delivery service,
in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall
be those set forth in the communications and documents that each party has provided the other immediately preceding the issuance
of this Note or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party
has specified by written notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written
confirmation of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or
electronically generated by the sender's facsimile machine containing the time, date, recipient facsimile number and an image of
the first page of such transmission or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable
evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

The addresses for such communications shall
be:

 

If to the Company, to:

 

Envision Solar International, Inc.

5660 Eastgate Drive

San Diego, CA 92121

Attn: Desmond Wheatley, CEO

Email: desmond.wheatley@envisionsolar.com

 

If to the Holder:

 

GEMINI SPECIAL OPPORTUNITIES FUND, LP

1075 Valleyside Lane

Encinitas, CA 92024

Attn: Steven Winters

Email: Steve@GeminiStrategies.com

    	3 of 4 

    	 

    

(5) APPLICABLE LAW AND
VENUE. This Note shall be governed by and construed in accordance with the laws of the State of California, without giving
effect to conflicts of laws thereof. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of California or in the federal courts located in the city and county
of San Diego, in the State of California. Both parties and the individuals signing this Agreement agree to submit to the jurisdiction
of such courts.

 

(a) WAIVER. Any waiver
by the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach
of such provision or of any breach of any other provision of this Note. The failure of the Holder to insist upon strict adherence
to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter
to insist upon strict adherence to that term or any other term of this Note. Any waiver must be in writing.

 

IN
WITNESS WHEREOF, the Company has caused this Promissory Note
to be duly executed by a duly authorized officer as of the date set forth above.

 

COMPANY:

 

Envision Solar International,
Inc.

 

By:__________________________

Name: Desmond Wheatley

Title: Chief Executive Officer

 

 

Signature
Page to Promissory Note No. EVSI-GEMAUG2018

 

    	4 of 4

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