Document:

f8k0210ex10xi_envision.htm

    Exhibit
10.11

     

    SUBSIDIARY
GUARANTEE

    

    SUBSIDIARY
GUARANTEE, dated as of November 12, 2008 (this “Guarantee”), made by
each of the undersigned direct and indirect Subsidiaries of the Company (as
defined below) (together with any other entities that may become a party hereto
as provided herein, individually and collectively, the “Guarantors”, and
together with the Company, the “Debtors”), in favor
of Gemini Master Fund, Ltd. (including its successors, transferees and assigns,
the “Purchaser”).

     

    W
I T N E S S E T H:

    

    WHEREAS,
pursuant to that certain Securities Purchase Agreement (“Purchase Agreement”)
dated on or about the date hereof by and between Envision Solar International,
Inc., a California corporation (the “Company”), and the
Purchaser, the Company has agreed to sell and issue to the Purchaser, and the
Purchaser has agreed to purchase from the Company, the Company’s Secured Bridge
Note (the “Note”), subject to
the terms and conditions set forth therein;

    

    WHEREAS,
each Guarantor is a direct or indirect Subsidiary of the Company, and as a
condition to the Closing of the transactions contemplated by the Purchase
Agreement, and in order to induce the Purchaser to enter into and consummate the
transactions contemplated by the Purchase Agreement (including without
limitation purchasing the Note and making the loans evidenced thereby), the
Company has agreed that the Guarantors would guaranty the Company’s obligations
under the Note, Purchase Agreement and other Transaction Documents in accordance
with the terms set forth in this Guarantee, the Note, the Purchase Agreement and
other Transaction Documents; and

    

    WHEREAS, each Guarantor will directly
benefit from the extension of credit to the Company represented by the issuance
of the Note;

    

    NOW, THEREFORE, in consideration of the
premises and to induce the Purchaser to enter into the Purchase Agreement and to
carry out the transactions contemplated thereby, each Guarantor hereby agrees
with the Purchaser as follows:

     
 

    1. Definitions. Unless
otherwise defined herein, terms defined in the Purchase Agreement and used
herein shall have the meanings given to them in the Purchase
Agreement.  The words “hereof,” “herein,” “hereto” and “hereunder” and
words of similar import when used in this Guarantee shall refer to this
Guarantee as a whole and not to any particular provision of this Guarantee, and
Section and Schedule references are to this Guarantee unless otherwise
specified. The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.  The
following terms shall have the following meanings:

     

           “Guarantee” means this
Subsidiary Guarantee, as the same may be amended, supplemented or otherwise
modified from time to time.

    
 

    
      
         

      

      
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             “Obligations” means,
in addition to all other costs and expenses of collection incurred by the
Purchaser in enforcing any of such Obligations and/or this Guarantee, all of the
liabilities and obligations (primary, secondary, direct, contingent, sole, joint
or several) due or to become due, or that are now or may be hereafter contracted
or acquired, or owing, of any Debtor to the Purchaser, including without
limitation all obligations under the Purchase Agreement, the Note, this
Guarantee and any other instruments, agreements or other documents executed
and/or delivered in connection herewith or therewith, in each case, whether now
or hereafter existing, voluntary or involuntary, direct or indirect, absolute or
contingent, liquidated or unliquidated, whether or not jointly owed with others,
and whether or not from time to time decreased or extinguished and later
increased, created or incurred, and all or any portion of such obligations or
liabilities that are paid, to the extent all or any part of such payment is
avoided or recovered directly or indirectly from the Purchaser as a preference,
fraudulent transfer or otherwise, as such obligations may be amended,
supplemented, converted, extended or modified from time to
time.  Without limiting the generality of the foregoing, the term
“Obligations” shall include without limitation: (i) principal of, and interest
on, the Note and the loans extended pursuant thereto; (ii) any and all other
fees, indemnities, costs, obligations and liabilities of the Debtors from time
to time under or in connection with the Purchase Agreement, the Note, this
Guarantee and any other instruments, agreements or other documents executed
and/or delivered in connection herewith or therewith; and (iii) all amounts
(including but not limited to post-petition interest) in respect of the
foregoing that would be payable but for the fact that the obligations to pay
such amounts are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving any
Debtor.

    

    
      
2. Guarantee.

     

    (a) Guarantee.

     

        (i) The
Guarantors hereby, jointly and severally, absolutely, unconditionally and
irrevocably, guarantee to the Purchaser and its successors, indorsees,
transferees and assigns, the prompt and complete payment and performance by the
Company when due (whether at the stated maturity, by acceleration or otherwise)
of the Obligations.  The Guarantors’ liability under this Guarantee
shall be unlimited, open and continuous for so long as this Guarantee remains in
force.

    
    (ii) Anything
herein or in any other Transaction Document to the contrary notwithstanding, the
maximum liability of each Guarantor hereunder and under the other Transaction
Documents shall in no event exceed the amount which can be guaranteed by such
Guarantor under applicable federal and state laws, including laws relating to
the insolvency of debtors, fraudulent conveyance or transfer or laws affecting
the rights of creditors generally (after giving effect to the right of
contribution set forth in Section 2(b)).

     

        (iii) Each
Guarantor agrees that the Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing
the guarantee contained in this Section 2 or affecting the rights and remedies
of the Purchaser hereunder.

     

        (iv) The
guarantee contained in this Section 2 shall remain in full force and effect
until all the Obligations and the obligations of each Guarantor under the
guarantee contained in this Section 2 shall have been satisfied by payment in
full.

    
 

    
      
         

      

      
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          (v) No
payment made by the Company, any of the Guarantors, any other guarantor or any
other Person or received or collected by the Purchaser from the Company, any of
the Guarantors, any other guarantor or any other Person by virtue of any action
or proceeding or any set-off or appropriation or application at any time or from
time to time in reduction of or in payment of the Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of any Guarantor
hereunder which shall, notwithstanding any such payment (other than any payment
made by such Guarantor in respect of the Obligations or any payment received or
collected from such Guarantor in respect of the Obligations), remain liable for
the Obligations up to the maximum liability of such Guarantor hereunder until
the Obligations are paid in full.

    

     

        (vi) Notwithstanding
anything to the contrary in this Guarantee, with respect to any defaulted
non-monetary Obligations the specific performance of which by the Guarantors is
not reasonably possible, the Guarantors shall only be liable for making the
Purchaser whole on a monetary basis for the Company's failure to perform such
Obligations in accordance with the Transaction Documents.

     

    (b) Right of
Contribution.  Each Guarantor hereby agrees that to the extent
that a Guarantor shall have paid more than its proportionate share of any
payment made hereunder, such Guarantor shall be entitled to seek and receive
contribution from and against any other Guarantor hereunder which has not paid
its proportionate share of such payment.  Each Guarantor's right of
contribution shall be subject to the terms and conditions of Section
2(c).  The provisions of this Section 2(b) shall in no respect limit
the obligations and liabilities of any Guarantor to the Purchaser, and each
Guarantor shall remain liable to the Purchaser for the full amount guaranteed by
such Guarantor hereunder.

     

    (c) No
Subrogation.  Notwithstanding any payment made by any Guarantor
hereunder or any set-off or application of funds of any Guarantor by the
Purchaser, no Guarantor shall be entitled to be subrogated to any of the rights
of the Purchaser against the Company or any other Guarantor or any collateral
security or guarantee or right of offset held by the Purchaser for the payment
of the Obligations, nor shall any Guarantor seek or be entitled to seek any
contribution or reimbursement from the Company or any other Guarantor in respect
of payments made by such Guarantor hereunder, until all amounts owing to the
Purchaser by the Company on account of the Obligations are paid in
full.  If any amount shall be paid to any Guarantor on account of such
subrogation rights at any time when all of the Obligations have not been paid in
full, such amount shall be held by such Guarantor in trust for the Purchaser,
segregated from other funds of such Guarantor, and shall, promptly following
receipt by such Guarantor, be turned over to the Purchaser in the exact form
received by such Guarantor (duly indorsed by such Guarantor to the Purchaser, if
required), to be applied against the Obligations, whether matured or unmatured,
in such order as the Purchaser may determine.

     

     

    
      
         

      

      
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    (d) Amendments, Etc. With
Respect to the Obligations. Each Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand
for payment of any of the Obligations made by the Purchaser may be rescinded by
the Purchaser and any of the Obligations continued, and the Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Purchaser, and
the Purchase Agreement, the Note and the other Transaction Documents and any
other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Purchaser may
deem advisable from time to time, and any collateral security, guarantee or
right of offset at any time held by the Purchaser for the payment of the
Obligations may be sold, exchanged, waived, surrendered or released. The
Purchaser shall have no obligation to protect, secure, perfect or insure any
Lien at any time held by them as security for the Obligations or for the
guarantee contained in this Section 2 or any property subject
thereto.

     
 

    (e) Guarantee Absolute and
Unconditional. Each Guarantor waives any and all notice of the creation,
renewal, extension or accrual of any of the Obligations and notice of or proof
of reliance by the Purchaser upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Obligations, and
any of them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon the
guarantee contained in this Section 2; and all dealings between the Company and
any of the Guarantors, on the one hand, and the Purchaser, on the other hand,
likewise shall be conclusively presumed to have been had or consummated in
reliance upon the guarantee contained in this Section 2. Each Guarantor waives,
to the fullest extent permitted by law, diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the
Company or any of the Guarantors with respect to the Obligations. Each Guarantor
understands and agrees that the guarantee contained in this Section 2 shall be
construed as a continuing, absolute and unconditional guarantee of payment
without regard to (a) the validity or enforceability of the Purchase Agreement,
the Note or any other Transaction Document, any of the Obligations or any other
collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Purchaser, (b) any defense,
set-off or counterclaim (other than a defense of payment and performance in full
of the Obligations or fraud by the Purchaser) which may at any time be available
to or be asserted by the Company or any other Person against the Purchaser, or
(c) any other circumstance whatsoever (with or without notice to or knowledge of
the Company or such Guarantor) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Company for the Obligations,
or of such Guarantor under the guarantee contained in this Section 2, in
bankruptcy or in any other instance. When making any demand hereunder or
otherwise pursuing its rights and remedies hereunder against any Guarantor, the
Purchaser may, but shall be under no obligation to, make a similar demand on or
otherwise pursue such rights and remedies as they may have against the Company,
any other Guarantor or any other Person or against any collateral security or
guarantee for the Obligations or any right of offset with respect thereto, and
any failure by the Purchaser to make any such demand, to pursue such other
rights or remedies or to collect any payments from the Company, any other
Guarantor or any other Person or to realize upon any such collateral security or
guarantee or to exercise any such right of offset, or any release of the
Company, any other Guarantor or any other Person or any such collateral
security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of the
Purchaser against any Guarantor.  For the purposes hereof, “demand”
shall include without limitation the commencement and continuance of any legal
proceedings.

     

     

    
      
         

      

      
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    (f) Reinstatement.  The
guarantee contained in this Section 2 shall continue to be effective, or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Obligations is rescinded or must otherwise be restored or returned by
the Purchaser upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Company or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Company or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been
made.

    

    (g) Payments.  Each
Guarantor hereby guarantees that payments hereunder will be paid to the
Purchaser without set-off or counterclaim in U.S. dollars at the address set
forth or referred to in the Purchase Agreement.

    

    3. Representations and
Warranties. Each Guarantor hereby makes the following representations and
warranties to the Purchaser as of the date hereof:

    
(a) Organization and
Qualification. The Guarantor is an entity, duly organized, validly
existing and in good standing under the laws of the applicable jurisdiction set
forth on Schedule 1, with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently conducted. The
Guarantor has no subsidiaries other than those identified as such on the
Disclosure Schedules to the Purchase Agreement.  The Guarantor is duly
qualified to do business and is in good standing as a foreign corporation in
each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, could not, individually or
in the aggregate, (x) adversely affect the legality, validity or enforceability
of any of this Guaranty in any material respect, (y) have a material adverse
effect on the results of operations, assets, prospects, or financial condition
of the Guarantor, or (z) adversely impair in any material respect the
Guarantor's ability to perform fully on a timely basis its obligations under
this Guaranty (a “Material Adverse
Effect”).

    
(b) Authorization;
Enforcement.  The Guarantor has the requisite power and
authority to enter into and to consummate the transactions contemplated by this
Guaranty, and otherwise to carry out its obligations hereunder.  The
execution and delivery of this Guaranty by the Guarantor and the consummation by
it of the transactions contemplated hereby have been duly authorized by all
requisite action on the part of the Guarantor.  This Guaranty has been
duly executed and delivered by the Guarantor and constitutes the legal, valid
and binding obligation of the Guarantor enforceable against the Guarantor in
accordance with its terms.

    

    (c) No Conflicts. The
execution, delivery and performance of this Guaranty by the Guarantor and the
consummation by the Guarantor of the transactions contemplated thereby do not
and will not (i) conflict with or violate any provision of its 

     

     

    
      
         

      

      
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    articles
or certificate of incorporation or operating agreement or (ii) conflict with,
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Guarantor is a party, or (iii) result in a violation of
any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Guarantor is
subject (including federal and state securities laws and regulations), or by
which any material property or asset of the Guarantor is bound or affected,
except in the case of each of clauses (ii) and (iii) such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as could
not, individually or in the aggregate, have or result in a Material Adverse
Effect.  The business of the Guarantor is not being conducted in
violation of any law, ordinance or regulation of any governmental authority,
except for violations which, individually or in the aggregate, do not have a
Material Adverse Effect.

    
(d) Consents and
Approvals.  The Guarantor is not required to obtain any
consent, waiver, authorization or order of, or make any filing or registration
with, any court or other federal, state, local, foreign or other governmental
authority or other person in connection with the execution, delivery and
performance by the Guarantor of this Guaranty.

    

    (e) Purchase
Agreement.  The representations and warranties of the Company
set forth in the Purchase Agreement as they relate to the Guarantor, each of
which is hereby incorporated herein by reference, are true and correct as of
each time such representations are deemed to be made pursuant to the Purchase
Agreement, and the Purchaser shall be entitled to rely on each of them as if
they were fully set forth herein, provided that each reference in each such
representation and warranty to the Company's knowledge shall, for the purposes
of this Section 3, be deemed to be a reference to the Guarantor's
knowledge.

    

    (f) Company’s
Request.  This Guarantee is executed at the Company’s request
and not at the request of the Purchaser.

    

    (g) Obtaining Company
Information.  The Guarantor has established adequate means of
obtaining from the Company on a continuing basis information regarding the
Company’s financial condition.

    

    (h) Solvency.  As
of the date hereof and after giving effect to the transactions contemplated
hereby (a) the property of the Guarantor, at a fair valuation, will exceed its
debt; (b) the capital of the Guarantor will not be unreasonably small to conduct
its business; (c) the Guarantor will not have incurred debts, or have intended
to incur debts, beyond its ability to pay such debts as they mature; and (d) the
present fair salable value of the assets of the Guarantor will be greater than
the amount that will be required to pay its probable liabilities (including
debts) as they become absolute and matured.  For purposes of this
subsection (h), “debt” means any liability on a claim, and “claim” means (i) the
right to payment, whether or not such right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, undisputed, legal,
equitable, secured or unsecured, or (ii) the right to an equitable remedy for
breach of performance if such breach gives rise to a right to payment, whether
or not such right to an equitable remedy is reduced to judgment, fixed,
contingent, matured, unmatured, undisputed, secured or unsecured.

    
 

    
      
         

      

      
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    4. Covenants.

    

    (a) Actions.  Each
Guarantor covenants and agrees with the Purchaser that, from and after the date
of this Guarantee until the Obligations shall have been paid in full, such
Guarantor shall take, and/or shall refrain from taking, as the case may be, each
commercially reasonable action that is necessary to be taken or not taken, as
the case may be, so that no Event of Default is caused by the failure to take
such action or to refrain from taking such action by such
Guarantor.

    

    (b) Insurance.  So
long as the Note remains outstanding, each Guarantor shall have in full force
and effect (a) insurance reasonably believed by such Guarantor to be adequate on
all assets and activities, covering property damage and loss of income by fire
or other casualty, and (b) insurance reasonably believed to be adequate
protection against all liabilities, claims and risks against which it is
customary for companies similarly situated as such Guarantor to
insure.

    

    (c) Compliance with
Laws.  So long as the Note remains outstanding, each Guarantor
will use reasonable efforts to comply with all applicable laws, rules,
regulations, orders and decrees of all governmental authorities, except to the
extent non-compliance (in one instance or in the aggregate) would not have a
Material Adverse Effect.

    

    (d) Corporate Existence; Merger
and Consolidation.  So long as the Note remains outstanding,
each Guarantor shall maintain its corporate existence. Each Guarantor shall not
consolidate with or merge with or into, or convey, transfer or lease all or
substantially all its assets to, any Person, except to the same extent that the
Company is so permitted, and in accordance with the same provisions applicable
to the Company, in the Purchase Agreement or the Note (with the assumption of
obligations applying to the assumption of the obligations under this
Guarantee).

    

    (e) Taxes.  Each
Guarantor shall pay, and shall cause each of its subsidiaries to pay, prior to
delinquency, all material taxes, assessments, and governmental levies except
such as are contested in good faith and by appropriate proceedings or where the
failure to effect such payment is not adverse in any material respect to such
Guarantor or the Purchaser.

    

    (f) Stay, Extension and Usury
Laws.  Each Guarantor covenants (to the extent that it may
lawfully do so) that it shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay, extension
or usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Guarantee; and each Guarantor
(to the extent that it may lawfully do so) hereby expressly waives all benefit
or advantage of any such law, and covenants that it shall not, by resort to any
such law, hinder, delay or impede the execution of any right herein granted to
the Purchaser, but shall suffer and permit the execution of every such right as
though no such law has been enacted.

     

     

    
      
         

      

      
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(g) Negative
Covenants.  So long as any of the Obligations are outstanding,
unless the Purchaser shall otherwise consent in writing, each Guarantor will not
directly or indirectly on or after the date of this Guarantee:

     

        i. other than Permitted Indebtedness
(as defined in the Note), enter into, create, incur, assume or suffer to exist
any Indebtedness of any kind, including but not limited to, a guarantee, on or
with respect to any of its property or assets now owned or hereafter acquired or
any interest therein or any income or profits therefrom;

    

        ii. other than Permitted Liens (as defined in the Note),
enter into, create, incur, assume or suffer to exist any liens of any kind, on
or with respect to any of its property or assets now owned or hereafter acquired
or any interest therein or any income or profits
therefrom;

    

        iii. amend its certificate of incorporation, bylaws or other
charter documents so as to adversely affect any rights of the Purchaser
hereunder;

    

        iv. repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de
minimis number of shares of its securities or debt obligations;

    

        v. repay,
repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness,
other than regularly scheduled principal and interest payments as such terms are
in effect as of the Closing Date;

    

        vi. repay,
repurchase or offer to repay, repurchase or otherwise acquire any indebtedness
to any current or former employees, officers or directors of such Guarantor or
Company or such current or former employees’, officers’ or directors’
affiliates, including without limitation any loans from or management fees
payable to any of the foregoing;

    

        vii. pay cash
dividends or distributions on any equity securities of such
Guarantor;

       

        viii. enter
into any transaction with any Affiliate of such Guarantor, unless such
transaction is made on an arm’s-length basis and expressly approved by a
majority of the disinterested directors of the Company (even if less than a
quorum otherwise required for board approval); or

    

        ix. enter into any agreement with
respect to any of the foregoing; provided, however, that no Guarantor shall be
prohibited from undertaking any of the actions described above that the Company
is permitted to undertake pursuant to the terms of the Purchase Agreement, Note
and any and all other agreements or other documents entered into in connection
with the financings contemplated by the Purchase Agreement.

     

    5. Miscellaneous.

     

     

    
      
         

      

      
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    (a) Amendments in
Writing.   None of the terms or provisions of this
Guarantee may be waived, amended, supplemented or otherwise modified except in
writing by the Purchaser.

    
(b) Notices.  All
notices, requests and demands to or upon the Purchaser or any Guarantor
hereunder shall be effected in the manner provided for in the Purchase
Agreement, provided that any such notice, request or demand to or upon any
Guarantor shall be addressed to such Guarantor at its notice address set forth
on Schedule
1.

    

    (c) No Waiver by Course of
Conduct; Cumulative Remedies. The Purchaser shall not by any act (except
by a written instrument pursuant to Section 5(a)), delay, indulgence, omission
or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any default under the Transaction Documents or Event of
Default.  No failure to exercise, nor any delay in exercising, on the
part of the Purchaser any right, power or privilege hereunder shall operate as a
waiver thereof.  No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.  A waiver by the
Purchaser of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Purchaser would otherwise
have on any future occasion.  The rights and remedies provided herein
are cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

    

    (d) Enforcement Expenses;
Indemnification.

    

        (i) Each
Guarantor agrees to pay, or reimburse the Purchaser for, all costs and expenses
incurred in collecting against such Guarantor under the guarantee contained in
Section 2 or otherwise enforcing or preserving any rights under this Guarantee
and the other Transaction Documents to which such Guarantor is a party,
including without limitation the reasonable fees and disbursements of counsel to
the Purchaser.

    
    (ii) Each
Guarantor agrees to pay, and to save the Purchaser harmless from, any and all
liabilities with respect to, or resulting from any delay in paying, any and all
stamp, excise, sales or other taxes which may be payable or determined to be
payable in connection with any of the transactions contemplated by this
Guarantee.

    

        (iii) Each
Guarantor agrees to pay, and to save the Purchaser harmless from, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect
to the execution, delivery, enforcement, performance and administration of this
Guarantee to the extent the Company would be required to do so pursuant to the
Purchase Agreement.

    

        (iv) The
agreements in this Section shall survive repayment of the Obligations and all
other amounts payable under the Purchase Agreement, the Note and the other
Transaction Documents.

     

     

    
      
         

      

      
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    (e) Successor and
Assigns. This Guarantee shall be binding upon the successors and assigns
of each Guarantor and shall inure to the benefit of the Purchaser and their
respective successors and assigns; provided that no Guarantor may assign,
transfer or delegate any of its rights or obligations under this Guarantee
without the prior written consent of the Purchaser.

    
(f) Set-Off.  Each
Guarantor hereby irrevocably authorizes the Purchaser at any time and from time
to time while an Event of Default under any of the Transaction Documents shall
have occurred and be continuing, without notice to such Guarantor or any other
Guarantor, any such notice being expressly waived by each Guarantor, to set-off
and appropriate and apply any and all deposits, credits, indebtedness or claims,
in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by the Purchaser to
or for the credit or the account of such Guarantor, or any part thereof in such
amounts as the Purchaser may elect, against and on account of the obligations
and liabilities of such Guarantor to the Purchaser hereunder and claims of every
nature and description of the Purchaser against such Guarantor, in any currency,
whether arising hereunder, under the Purchase Agreement, any other Transaction
Document or otherwise, as the Purchaser may elect, whether or not the Purchaser
have made any demand for payment and although such obligations, liabilities and
claims may be contingent or unmatured.  The Purchaser shall notify
such Guarantor promptly of any such set-off and the application made by the
Purchaser of the proceeds thereof, provided that the failure to give such notice
shall not affect the validity of such set-off and application.  The
rights of the Purchaser under this Section are in addition to other rights and
remedies (including without limitation other rights of set-off) which the
Purchaser may have.

    
(g) Counterparts.  This
Guarantee may be executed by one or more of the parties to this Guarantee on any
number of separate counterparts (including by fax or PDF), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

    

    (h) Severability.  Any
provision of this Guarantee which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

    

    (i) Section
Headings.  The Section headings used in this Guarantee are for
convenience of reference only and are not to affect the construction hereof or
be taken into consideration in the interpretation hereof.

     

    (j) Integration.  This
Guarantee and the other Transaction Documents represent the agreement of the
Guarantors and the Purchaser with respect to the subject matter hereof and
thereof, and there are no promises, undertakings, representations or warranties
by the Purchaser relative to subject matter hereof and thereof not expressly set
forth or referred to herein or in the other Transaction Documents.

    
 

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

       

    

    (k) Governing
Law.  This guarantee shall be governed by, and construed and
interpreted in accordance with, the law of the state of New York without regard
to any principles of conflicts of laws.

    

    (l) Submission to
Jurisdictional; Waiver. Each Guarantor hereby irrevocably
and unconditionally:

    

        (i) submits
for itself and its property in any legal action or proceeding relating to this
Guarantee and the other Transaction Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the Courts of the State of New York,
located in New York County, New York, the courts of the United States of America
for the Southern District of New York, and appellate courts from any
thereof;

    
    (ii) consents
that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

    

        (iii) agrees
that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to such Guarantor at its address
referred to in Schedule 1 below or at such other address of which the Purchaser
shall have been notified pursuant thereto;

    

        (iv) agrees
that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other
jurisdiction; and

    

        (v) waives,
to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section any
special, exemplary, punitive or consequential damages.

    

    (m) Acknowledgements.  Each
Guarantor hereby acknowledges that:

    

        (i) it has
been advised by counsel in the negotiation, execution and delivery of this
Guarantee and the other Transaction Documents to which it is a
party;

     

        (ii) the
Purchaser has no fiduciary relationship with or duty to any Guarantor arising
out of or in connection with this Guarantee or any of the other Transaction
Documents, and the relationship between the Guarantors, on the one hand, and the
Purchaser, on the other hand, in connection herewith or therewith is solely that
of debtor and creditor; and

    

        (iii) no joint
venture is created hereby or by the other Transaction Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Guarantors
and the Purchaser.

    

    (n) Release of
Guarantors. Subject to Section 2, each Guarantor will be released from
all liability hereunder concurrently with the repayment in full of all amounts
owed under the Purchase Agreement, the Note and the other Transaction
Documents.

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

     

    (o) Seniority. The
Obligations of each of the Guarantors hereunder rank senior in priority to any
other Indebtedness (as defined in the Purchase Agreement) of such
Guarantor.

    

    (p) Waiver of Jury
Trial.  EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS
HEREOF, THE PURCHASER, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND FOR ANY
COUNTERCLAIM THEREIN.

    

    (q) Security.  The
Obligations and Guarantors’ obligations hereunder and under the other
Transaction Documents are secured by the assets of the Guarantors pursuant to
the terms of the Security Documents.

    

    

    *****************

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
 

    IN
WITNESS WHEREOF, the undersigned has caused this Guarantee to be
duly executed and delivered as of the date first above written.

    
    

     

     

    ENVISION SOLAR INTERNATIONAL,
INC., a California corporation

    

    

    By:____/s/ Robert
Noble______________________________________

    Name:  Robert
Noble

    Title:    CEO

    

    ENVISION SOLAR CONSTRUCTION,
INC., a California corporation

    

    

    By:____/s/ Robert
Noble______________________________________

    Name:  Robert
Noble

    Title:    CEO

    

    ENVISION SOLAR RESIDENTIAL,
INC., a California corporation

    

    

    By:____/s/ Robert
Noble______________________________________

    Name:  Robert
Noble

    Title:    CEO

    

    ENVISION AFRICA, LLC, a
Delaware limited liability company

    

    

    By:____/s/ Robert
Noble______________________________________

    Name:  Robert
Noble

    Title:    CEO

    

     

     

    13f8k0210ex10xii_envision.htm

    Exhibit
10.12

     

    FORBEARANCE
AGREEMENT

     

           FORBEARANCE
AGREEMENT (this “Agreement”), dated as of April 11, 2009, by and between
Envision Solar International, Inc., a California corporation (“Borrower”),
Envision Solar Construction, Inc., a California corporation, Envision Solar
Residential, Inc., a California corporation, and Envision Africa, LLC, a
Delaware limited liability company, (collectively, “the Envision Guarantors” or
“Guarantors”), and Gemini Master Fund, Ltd. (“Lender”).

     

    W I T N E S S E T H

     

    WHEREAS,
Lender, Borrower and the Envision Guarantors have entered into Financing
Agreements (as defined below) pursuant to which Lender has made loans to
Borrower, including, without limitation, a Secured Bridge Note, dated, November
12, 2008, in the principal amount of $591,770.83 (the “Bridge Note”)
and

     

    WHEREAS,
Borrower anticipates defaulting on the Bridge Note and has requested that Lender
forbear from exercising its rights as a result of such events of default and
Lender is willing to agree to forbear from exercising its rights and remedies on
the terms and conditions contained herein;

     

    NOW,
THEREFORE, in consideration of the foregoing, and the respective agreements,
warranties and covenants contained herein, the parties hereto agree, covenant
and warrant as follows:

     

    
      	
              SECTION
      1.  

            	
              DEFINITIONS.

            

    

     

    1.1 Additional
Definitions.  As used herein, the following terms shall have
the respective meanings given to them below:

     

    (a)  “Collateral
Agent” shall mean Gemini Strategies, LLC.

     

    (b)  “Financing
Agreements” shall mean all agreements, documents and instruments at any time
executed and/or delivered in connection with or related to the Bridge Note,
including, without limitation, the Securities Purchase Agreement, Security
Agreement, and Subsidiary Guarantee, as the same now exist and as has been and
may hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

     

    (c) “Lien”
shall mean any mortgage, deed of trust, pledge, hypothecation, assignment,
deposit arrangement, security interest, encumbrance (including, but not limited
to, easements, rights of way and the like), lien (statutory or other), security
agreement or transfer intended as security, including, without limitation, any
conditional sale or other title retention agreement, the interest of a lessor
under a capital lease or any financing lease having substantially the same
economic effect as any of the foregoing.

     

    (d) “Obligations”
shall mean the Bridge Note, including Borrower’s obligations to pay all amounts
payable thereunder, including, without limitation, principal, interest, the
Mandatory Default Amount (as defined in the Bridge Note), fees, costs, expenses
and other charges, and any amendments, modifications, supplements, extensions,
renewals, restatements or replacements thereof.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    (e)  “Security
Agreement” shall mean the Security Agreement, dated as of November 12, 2008, by
and between Borrower, the Lender, the Collateral Agent, and the
Guarantors.

     

    (f)  “Termination
Date” shall have the meaning given to such term in Section 3.2
hereof.

     

    
      	
              SECTION
      2.  

            	
              ACKNOWLEDGMENT.

            

    

     

    2.1 Acknowledgment of
Obligations.  Borrower and the Envision Guarantors hereby
acknowledge, confirm and agree that as of the close of business on April 12,
2009, Borrower is indebted to Lender in respect of the Bridge Note in the amount
of $591,770.83 (the “Note Amount”).  The Note Amount,is
unconditionally owing by Borrower to Lender, without offset, defense or
counterclaim of any kind, nature or description whatsoever.

     

    2.2 Acknowledgment of Security
Interests.  Borrower and the Envision Guarantors hereby
acknowledge, confirm and agree that Lender has and shall continue to have valid,
enforceable and perfected Liens upon and security interests in the assets and
properties of Borrower and the Envision Guarantors heretofore granted to Lender
pursuant to, and having first priority as set forth in, the Financing Agreements
executed prior to the date of this Agreement.

     

    2.3 Acknowledgment of Patent and
Trademark Assignments.  Borrower and the Envision Guarantors
hereby acknowledge, confirm and agree that Lender has and shall continue to have
valid and enforceable assignments of the patents, trademarks and other
intellectual property and other assets assigned by Borrower and the Envision
Guarantors, including without limitation those listed on the annexes to the
Security Agreement

     

    2.4 Binding Effect of
Documents.  Borrower and the Envision Guarantors hereby
acknowledge, confirm and agree that: (a) each of the Financing Agreements
to which it is a party has been duly executed and delivered to Lender by
Borrower or the Envision Guarantors and each is in full force and effect as of
the date hereof, (b) the agreements and obligations of Borrower, or the Envision
Guarantors contained in such documents and this Agreement constitute the legal,
valid and binding obligations of Borrower and the Envision Guarantors,
enforceable against it in accordance with their respective terms (subject to
bankruptcy, insolvency, creditors rights and general equitable principles), and
Borrower, and the Envision Guarantors have no valid defense to the enforcement
of such obligations, and (c) Lender is entitled to the rights, remedies and
benefits provided for in the Financing Agreements.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	
              SECTION
      3.  

            	
              FORBEARANCE AND CHANGE
      OF MATERIAL TERMS OF THE BRIDGE
NOTE.

            

    

     

    3.1 Forbearance.

     

    (a) Subject
to the terms and conditions of this Agreement, including but not limited to
Lender’s receipt of a payment of all remaining amounts outstanding, including
interest, fees and expenses and any other amounts owed to the Lender from or on
behalf of the Borrower on or before December 31, 2009, Lender agrees to forbear
from exercising its rights and remedies under the Financing Agreements,
applicable law or otherwise until the earliest to occur of (a) December 31,
2009, (b) the third day following any Fundamental Transaction (as defined in the
Bridge Note), and (c) Borrower’s breach of any of the terms and provisions of
this Agreement or any Event of Default under and as defined in the Bridge Note
(other than pursuant to Section 6(a)(i) thereof) (the “Termination
Date”).

     

    (b) Upon the
Termination Date, the agreement of Lender to forbear shall automatically and
without further action or notice terminate and be of no force and effect, it
being understood and agreed that the effect of such termination will be to
permit Lender to exercise such rights and remedies immediately, including, but
not limited to the foreclosure of all collateral as described in the Financing
Agreements; in each case without any further notice, passage of time or
forbearance of any kind.

     

    (c) Borrower
agrees that all of the Obligations under the Bridge Note shall, if not sooner
paid, be absolutely and unconditionally due and payable in full in cash or other
immediately available funds by Borrower to Lender on the Termination
Date.  No termination of any of the Financing Agreements or any
provisions thereof shall relieve or discharge Borrower, or the Envision
Guarantors, of their duties, covenants and obligations under the Financing
Agreements and this Agreement until all Obligations have been finally paid in
full in cash or other immediately available funds.

     

    (d)   If after
the date hereof the Company and/or its Subsidiaries in one or more transactions
issues any debt or equity securities or otherwise obtains a loan for borrowed
money in connection with any capital raising transaction (“Capital Raising
Transaction”) in excess of $500,000 in the aggregate for all such transactions,
the Company shall repay a portion of the outstanding principal amount, and
accrued interest thereon, hereunder at least equal to 25% of the gross proceeds
(net of broker’s commissions) received by the Company or such Subsidiary in such
transaction(s).  Each such repayment shall be made with one (1)
Business Day following the date of receipt by the Company of such
proceeds.

     

    (e)  Beginning
on April 12, 2009, the Note Amount (together with any capitalized interest
thereon pursuant to the terms hereof) owed by Borrower to Lender shall bear
interest at a rate of 15% per year.  Such interest shall be payable
monthly in arrears beginning on the first business day of each calendar month
commencing the first calendar month after which the Borrower raises $100,000 in
the aggregate (net of brokers’ commissions) for all Capital Raising
Transactions.  Any amounts of accrued interest not paid on the first
business day for any calendar month after April 12, 2009 shall be compounded and
added to the principal amount then outstanding under the Bridge
Note.

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

       

       

    

    (f)  As
additional consideration for the Lender agreeing to this Agreement, the Borrower
shall issue 10,000 shares of common stock of the Borrower to the
Lender.  Such shares of common stock shall be duly and validly issued,
fully paid and nonassessable, and free and clear of all Liens and shall be
delivered to the Lender within 5 business days after the signing of this
Agreement.

    

    3.2 No Other Waivers;
Reservation of Rights.

     

    (a) Lender
has not waived, is not by this Agreement waiving any events of default which may
be continuing on the date hereof or any events of default which may occur after
the date hereof, and except as expressly set forth in Section 3.1(a) hereof,
Lender has not agreed to forbear with respect to any of its rights or remedies
concerning any events of default, which may have occurred and are continuing as
of the date hereof or which may occur after the date hereof.

     

    
      	
              SECTION
      4.  

            	
              RELEASE.

            

    

     

    4.1 Release.

     

    (a) In
consideration of the agreements of Lender contained herein and the making of the
Bridge Note and other financial accommodations by Lender to Borrower pursuant to
the Financing Agreements, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Borrower and the
Envision Guarantors on behalf of themselves and their respective successors and
assigns, hereby, jointly and severally, absolutely, unconditionally and
irrevocably release, remise and forever discharge Lender and the Collateral
Agent, their successors and assigns, and its present and former shareholders,
affiliates, subsidiaries, divisions, predecessors, directors, officers,
managers, members, partners, attorneys, employees, agents and other
representatives (Lender, Collateral Agent and all such other parties being
hereinafter referred to collectively as the “Releasees” and individually as a
“Releasee”), of and from any and all demands, actions, causes of action, suits,
covenants, contracts, controversies, agreements, promises, sums of money,
accounts, bills, reckonings, damages, claims, counterclaims, defenses, rights of
set-off, demands, obligations and liabilities whatsoever (indivi­dually, a
“Claim” and collectively, “Claims”) of every name and nature, known or unknown,
suspected or unsuspected, both at law and in equity, which Borrower or Envision
Guarantors or any of their respective successors or assigns, as the case may be,
may now or hereafter own, hold, have or claim to have against the Releasees or
any of them for, upon, or by reason of any nature, cause or thing whatsoever
which arises at any time on or prior to the day and date of this Agreement for
or on account of, or in relation to, or in any way in connection with any of the
Financing Agreements.

     

    (b) Each of
Borrower and the Envision Guarantors understands, acknowledges and agrees that
the release set forth above may be pleaded as a full and complete defense and
may be used as a basis for an injunction against any action, suit or other
proceeding which may be instituted, prosecuted or attempted in breach of the
provisions of such release.

     

    (c) Each of
Borrower and the Envision Guarantors agrees that no fact, event, circumstance,
evidence or transaction which could now be asserted or which may hereafter be
discovered shall affect in any manner the final and unconditional nature of the
release set forth above.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    4.2 Covenant Not to
Sue.  Borrower and Envision Guarantors, on behalf of themselves
and their respective successors and assigns, hereby jointly and severally,
absolutely, unconditionally and irrevo­cably, covenant and agree with each
Releasee that they will not sue (at law, in equity, in any regulatory proceeding
or otherwise) any Releasee on the basis of any Claim released, remised and
discharged by Borrower and Guarantors pursuant to Section 4.1
above.  If Borrower or Guarantors violate the foregoing covenant,
Borrower or Guarantors, as applicable, agree to pay, in addition to such other
damages as any Releasee may sustain as a result of such violation,
all  fees and costs incurred by any Releasee as a result of such
violation (including reasonable attorney’s fees).

     

    

    
      	
              SECTION
      5.  

            	
              REPRESENTATIONS AND
      WARRANTIES.

            

    

     

    Borrower
hereby represents, warrants and covenants with and to Lender as
follows:

     

    5.1 Binding Effect of
Documents.  This Agreement and the other Financing Agreements
have been duly executed and delivered to Lender by Borrower and the Envision
Guarantors and are in full force and effect.  The agreements and
obligations of Borrower contained in the Financing Agreements constitute legal,
valid and binding obligations of Borrower, enforce­able by Lender against
Borrower in accordance with their respective terms, except to the extent that a
court of competent jurisdiction refuses to enforce such agreements due to
bankruptcy, insolvency, creditors rights, general equitable principles or
otherwise.

     

    5.2 No Conflict,
Etc.  The execution, delivery and performance of this Agreement
by Borrower and the Envision Guarantors, does not and will not violate any
agreement, instrument or undertaking to which they are a party or by which they
are bound, and do not and will not result in, or require, the creation or
imposition of any Lien on any of their properties or revenues.

     

    5.3 Additional Events of
Default.  The parties hereto acknowledge, confirm and agree
that the failure of Borrower or the Envision Guarantors to comply with the
covenants, conditions and agreements contained herein or in any other agreement,
document or instrument at any time executed and/or delivered by Borrower with,
to or in favor of Lender shall constitute an event of default under the
Financing Agreements.

     

    5.4 Subsidiaries.  The
Company has no direct or indirect subsidiaries other than the Envision
Guarantors

     

    5.5 IP.  The
Company and its Subsidiaries do not have any trademarks or patents (or filings
or applications therefor) except as set forth in the Security
Agreement.

     

    
      	
              SECTION
      6.  

            	
              CONDITIONS TO
      EFFECTIVENESS OF THIS
AGREEMENT.

            

    

     

    The terms and provisions of Section 3.1
of this Agreement shall only be effective upon the satisfaction of Lender that
it has received, in form and substance satisfactory to Lender, an original of
this Agreement, duly authorized, executed and delivered by Borrower and the
Envision Guarantors and the shares of common stock provided for in Section
3.1(f).

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	
              SECTION
      7.  

            	
              PROVISIONS OF GENERAL
      APPLICATION.

            

    

     

    7.1 Effect of this
Agreement.  Except as modified pursuant hereto, no other
changes or modifications to the Financing Agreements are intended or implied and
in all other respects the Financing Agreements are hereby specifically ratified,
restated and confirmed by all parties hereto as of the effective date
hereof.  To the extent of conflict between the terms of this Agreement
and the Financing Agreements, the terms of this Agreement shall
control.  The Financing Agreements and this Agreement shall be read
and construed as one agreement.

     

    7.2 Costs and
Expenses.  The Borrower, the Envision Guarantors and the Lender
each abso­lutely and unconditionally agree to pay all of their own
expenses,  including all fees and disbursements of any counsel in
connection with the preparation, negotiation, execution or delivery of this
Agreement and any agreements delivered in connection with the transactions
contemplated hereby or any of its directors, officers, members, managers,
partners, employees, agents or other representatives as a consequence of or in
any way in connection with the preparation, negotiation, execution or delivery
of this Agreement and any agreements prepared, negotiated, executed or delivered
in connection with the transactions contemplated hereby.

     

    7.3 Further
Assurances.  The parties hereto shall execute and deliver such
additional documents and take such additional action as may be reasonably
necessary or desirable to effectuate the provisions and purposes of this
Agreement.

     

    7.4 Merger.  This
Agreement and the documents executed in connection herewith represent the entire
expression of the agreement of Borrower, the Envision Guarantors and Lender
regarding the matters set forth herein.  No modification, rescission,
waiver, release or amendment of any provision of this Agreement shall be made,
except by a written agreement signed by Borrower, the Envision Guarantors and
Lender, except for any extension of the Termination Date which shall only
require execution by Lender.

     

    7.5 Governing
Law.  The rights and obligations hereunder of each of the
parties hereto shall be governed by and interpreted and determined in accordance
with the internal laws of the State of California without regard to principle of
conflicts of laws, but excluding any rule of law that would cause the
application of the law of any jurisdiction other than the laws of the State of
California.

     

    7.6 Binding
Effect.  This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and their respective heirs, executors,
administrators, successors and permitted assigns, as the case may
be.

     

    7.7 Survival of Representations
and Warranties.  All representations and warranties made in
this Agreement or any other document furnished in connection with this Agreement
shall survive the execution and delivery of this Agreement and the other
documents, and no investigation by Lender or any closing shall affect the
representations and warranties or the right of Lender to rely upon
them.

     

    7.8 Severability.  Any
determination that any provision of this Agreement or any application thereof is
invalid, illegal or unenforceable in any respect in any instance shall not
affect the validity, legality or enforceability of such provision in any other
instance, or the validity, legality or enforceability of any other provision of
this Agreement.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    7.9 Reviewed by
Attorneys.  Borrower and the Envision Guarantors represent and
warrant that they (a) understand fully the terms of this Agreement and the
consequences of the execution and delivery of this Agreement, (b) have been
afforded an oppor­tunity to have this Agreement reviewed by, and to discuss
this Agreement and all documents executed in connection herewith with, such
attorneys and other persons as Borrower may wish, and (c) have entered into this
Agreement and executed and delivered all documents in connection herewith of its
own free will and accord and without threat, duress or other coercion of any
kind by any person.  The parties hereto acknowledge and agree that
neither this Agreement nor the other documents executed pursuant hereto shall be
construed more favorably in favor of one than the other based upon which party
drafted the same, it being acknowledged that all parties hereto contributed
substantially to the negotiation and preparation of this Agreement and the other
documents executed pursuant hereto or in connection herewith.

     

    7.10 Mutual Waiver of Right of
Jury Trial.  BORROWER, ENVISION GUARANTORS, AND LENDER HEREBY
WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING
OUT OF, OR IN ANY WAY RELATING TO:  (A) THIS AGREEMENT, OR ANY OF THE
AGREEMENTS, INSTRUMENTS OR DOCUMENTS REFERRED TO HEREIN; (B) ANY OTHER
PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN THEM; OR (C) ANY CONDUCT, ACTS
OR OMISSIONS OF LENDER, ENVISION GUARANTORS OR BORROWER OR ANY OF THEIR
RESPECTIVE DIRECTORS, OFFICERS, MANAGERS, MEMBERS, PARTNERS, EMPLOYEES, AGENTS,
ATTORNEYS OR AFFILIATES; IN EACH OF THE FOREGOING CASES, WHETHER IN CONTRACT OR
TORT OR OTHERWISE.

     

    7.11 Counterparts.  This
Agreement may be executed in any number of counterparts, but all of such
counterparts shall together constitute but one and the same
agreement.  In making proof of this Agreement, it shall not be
necessary to produce or account for more than one counterpart thereof signed by
each of the parties hereto.  Delivery of an executed counterpart of
this Agreement by telefacsimile or .pdf shall have the same force and effect as
delivery of an original executed counterpart of this Agreement.

     

    

     

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OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    IN
WITNESS WHEREOF, this Agreement is executed and delivered as of the day and year
first above written.

     

    
    

     

    
      	 	 	LENDER:
	 	 	 
	 	 	GEMINI
      MASTER FUND, LTD.
	 	 	 
	 	By:	GEMINI
      STRATEGIES, LLC,  as investment manager
	 	 	 
	 	By:	 /s/ Steven
      Winters
	 	 	 
	 	 	Title:
      President
	 	 	 

    

     

    
    

     

    
      	BORROWER:	 
	 	 
	ENVISION
      SOLAR INTERNATIONAL, INC.	 
	 	 
	By: /s/ Robert
      Noble	 
	 	 
	Title: CEO	 
	 	 

    

     

     

    
      
        	ENVISION
      GUARANTORS:	 
	 	 
	      
                ENVISION
      SOLAR CONSTRUCTION, INC.,

              	 
	 	 
	By: /s/ Robert
      Noble	 
	 	 
	Title:  CEO	 
	 	 

      

       

    

    

       

      
        	ENVISION
      SOLAR RESIDENTIAL, INC.	 
	 	 
	By: /s/ Robert
      Noble	 
	 	 
	Title:  CEO	 
	 	 

      

       

    

    

       

      
        	ENVISION
      AFRICA, LLC	 
	 	 
	By: /s/ Robert
      Noble 	 
	 	 
	Title:  CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]