Document:

Exhibit 10.1

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

 

This Amended and Restated
EMPLOYMENT AGREEMENT (this "Agreement") is effective as of the 1st day of January 2021, by and between Beam Global, a
Nevada corporation (the "Company"), and Desmond Wheatley, an individual ("Employee"), and is made with respect
to the following facts:

 

 

R E C I T A L S

 

A.       The
Company and the Employee entered into entered into that certain employment agreement effective as of January 1, 2016 and as amended
on July 24, 2018 (the “Original Employment Agreement”).

 

B.       The
Original Employment Agreement terminates as of December 31, 2020 and the parties desire to enter into this Amended and Restated
Employment Agreement to provide Employee with appropriate compensation arrangements and to assure Employee of employment stability.

 

C.       The
parties have entered into this Agreement for the purpose of setting forth the terms of employment of the Employee by the Company.

 

 

NOW, THEREFORE,
in consideration of the premises and mutual covenants herein contained, THE PARTIES HERETO AGREE AS FOLLOWS:

 

1.       Employment
of Employee and Duties.  The Employee shall continue as the President and Chief Executive Officer and Corporate Secretary
of the Company with all of the duties, privileges and authorities usually attendant upon such offices, including but not limited
to responsibility for the day-to-day management of the Company’s operations. Subject to (a) the general supervision of the
Board of Directors, and (b) the Employee's duty to report to the Board of Directors periodically, as specified by them from time-to-time,
Employee shall have all of the authority to perform his employment duties for the Company. During the term of this Agreement, Employee
shall also be a member of the Company’s Board of Directors and Chairman of the Board so long as the appropriate and sufficient
votes from the Company’s Board of Directors and shareholders support the Employee’s Board membership and chairmanship.

 

2.       Time
and Effort. Employee agrees to devote his full working time and attention to the management of the Company's business affairs,
the implementation of its strategic plan, as determined by the Board of Directors, and the fulfillment of his duties and responsibilities
as the Company's President and Chief Executive Officer and Corporate Secretary. Expenditure of a reasonable amount of time for
personal matters and business and charitable activities shall not be deemed to be a breach of this Agreement, provided that those
activities do not materially interfere with the services required to be rendered to the Company under this Agreement.

 

3.       The
Company's Authority. Employee agrees to comply with the Company's rules and regulations as adopted by the Company's Board
of Directors regarding performance of his duties, and to carry out and perform those orders, directions and policies established
by the Company with respect to his engagement. Employee shall promptly notify the Company's Board of Directors of any objection
he has to the Board's directives and the reasons for such objection.

 

4.       Noncompetition
by Employee. During the term of this Agreement, the Employee shall not, directly or indirectly, either as an employee,
employer, consultant, agent, principal, partner, stockholder (in a private company), corporate officer, director, or in any other
individual or representative capacity, engage or participate in any business that is in direct competition with the business of
the Company or its affiliates.

 

 

 

 

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5.       Term
of Agreement. This Agreement shall continue until December 31, 2025, unless sooner terminated as provided in Section 15
of this Agreement.

 

6.       Confidential
Information: Nondisclosure Covenant.

 

6.1.       Confidential
Information. As used herein the term “Confidential Information” shall mean all customer and contract lists,
records, financial data, trade secrets, business and marketing plans and studies, manuals for employee and personnel policies,
manufacturing and/or production manuals, computer programs and software, strategic plans, formulas, manufacturing and production
processes and techniques (including without limitation types of machinery and equipment used together with improvements and modifications
thereon), tools, applications for patents, designs, models, patterns, drawings, tracings, sketches, blueprints, and all other similar
information developed and/or used by the Company in the course of its business and which is not known by or readily available to
the general public.

 

6.2       Nondisclosure
Covenant. Employee acknowledges that, in the course of performing services for and on behalf of the Company, Employee has
had and will continue to have access to Confidential Information. Employee hereby covenants and agrees to maintain in strictest
confidence all Confidential Information in trust for the Company, its successors and assigns, and to disclose such information
only on a “need-to-know” basis in furtherance and for the benefit of the Company’s business. During the period
of Employee’s employment with the Company and at any and all times following Employee’s termination of employment for
any reason, including without limitation Employee’s voluntary resignation or involuntary termination with or without cause,
Employee agrees to not misappropriate, utilize for any purpose other than for the direct benefit of the Company, or disclose or
make available to anyone outside the Company’s organization, any Confidential Information or anything relating thereof without
the prior written consent of the Company, which consent may be withheld by the Company for any reason or no reason at all.

 

6.3       Return
of Property. Upon Employee’s termination of his employment with the Company for any reason, including without limitation
Employee’s voluntary resignation or involuntary termination with or without cause, Employee hereby agrees to promptly return
to the Company’s possession all copies of any writings, computer discs or equipment, drawings or any other information relating
to Confidential Information which are in Employee’s possession or control. Employee further agrees that, upon the request
of the Company at any time during Employee’s period of employment with the Company, Employee shall promptly return to the
Company all such copies of writings, computer discs or equipment, drawings or any other information relating to Confidential Information
which are in Employee’s possession or control.

 

6.4       Rights
to Inventions and Trade Secrets. Employee hereby assigns to the Company all right, title and interest in and to any ideas,
inventions, original works or authorship, developments, improvements, or trade secrets which Employee solely or jointly has conceived
or reduced to practice, or will conceive or reduce to practice, or cause to be conceived or reduced to practice during his employment
with the Company. All original works of authorship which are made by Employee (solely or jointly with others) within the scope
of Employee’s services hereunder and which are protectable by copyright are “works made for hire,” as that term
is defined in the United States Copyright Act.

 

7.       Noninterference
and Nonsolicitation Covenants. In further reflection of the Company’s important interests in its proprietary information
and its trade, customer, vendor and employee relationships, Employee agrees that, during the 12 month period following the termination
of Employee’s employment with the Company for any reason, including without limitation Employee’s voluntary resignation
or involuntary termination for cause, Employee will not directly or indirectly, for or on behalf of any person, firm, corporation
or other entity, (a) interfere with any contractual or other business relationships that the Company has with any of its customers,
clients, service providers or materials suppliers as of the date of Employee’s termination of employment, or (b) solicit
or induce any employee of the Company to terminate his/her employment relationship with the Company.

 

 

 

 

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8.       Compensation.
During the term of this Agreement, the Company shall pay the following compensation to Employee:

 

8.1       Annual
Compensation.  Subject to periodic changes made upon the recommendation of the Compensation Committee of the Company’s
Board of Directors and approval of the Company’s Board of Directors, Employee shall be paid a fixed salary of not less than
$300,000 per annum, which will be paid in accordance with the Company payroll policies.

 

8.2       Additional
Compensation. In addition to the compensation set forth in Section 8.1 of this Agreement, Employee is eligible for a quarterly
and/or annual bonus based upon criteria which will be set by the Board of Directors (the “Bonus Potential”). Employee’s
total bonus will be based on the Board of Directors' evaluation of the Employee's definable efforts, accomplishments and similar
contributions. The bonus will also be based on a consideration of increases in shareholder value, efforts made by the Employee
to effect mergers or acquisitions for the Company, if applicable, and other positive results for shareholders based on efforts
by the Employee. The Employee's individual performance goals will be duly adopted by the Board of Directors at least annually and
no later than the last business day of the first calendar quarter of any given year. In the absence of a written indication of
the Employee’s Bonus Potential by resolution duly adopted by the Company’s Board of Directors, “Bonus Potential”
for the purpose of this Agreement will mean 100% of Annual Compensation per annum, pro-rated for partial years. An indication of
Bonus Potential for a fiscal year will be deemed to cover all fiscal quarters within such fiscal year. Any quarterly bonus due
for a particular fiscal quarter will be paid within fifteen (15) days following the end of each such Company fiscal quarter. Any
annual bonus earned will be paid within thirty (30) days) following the filing of the Company’s Form 10k for the fiscal year
for which the annual bonus was earned. The Employee must be an active employee of the Company at the end of each fiscal quarter
during the period for which the quarterly bonus is earned to receive bonuses. Annual bonuses will be deemed earned by the Employee
on the 31st day of December of the year for which the bonus is earned and will be paid to the Employee in accordance
with this section 8.2 of the Agreement regardless of the Employees employment status with the Company.

 

8.3        Stock
Incentives. On April 1, 2021, the Company will grant to the Employee that number of shares of stock equal to $112,500
divided by the closing price of the Company’s common stock as quoted on Nasdaq. Fifty
percent of the shares of stock will vest in three (3) equal quarterly installments at the end of each calendar quarter following
the grant date. The remaining fifty percent of the stock will vest in eleven equal amounts at the end of each calendar quarter
following the grant date. On the first business day of each calendar year during the term of this Agreement commencing
on January 1, 2022, the Company will grant to the Employee that number of shares of stock equal to $150,000
divided by the closing per share trading price on the grant date quoted on Nasdaq. Fifty percent of the shares of stock will vest
in four (4) equal quarterly installments at the end of each calendar quarter following the grant date. The remaining fifty percent
of the stock will vest in twelve equal amounts at the end of each calendar quarter following the grant date. 

 

Upon recommendation of
the Compensation Committee of the Company’s Board of Directors and approval of the Company’s full Board of Directors,
the Employee may be granted additional stock or stock options to purchase additional stock of the Company, depending on the achievement
of Company operating milestones such as annual gross revenue and EBIDTA, or time served as an employee, to be established by the
Board of Directors of the Company.

 

9.       Fringe
Benefits. Employee shall be entitled to all fringe benefits that the Company or its subsidiaries may make available from
time-to-time for persons with comparable positions and responsibilities. Without limitation, such benefits shall include participation
in any life and disability insurance programs, profit incentive plans, pension or retirement plans, and bonus plans as are maintained
or adopted from time-to-time by the Company. The Company shall also provide Employee with any medical and dental group insurance
coverage or equivalent coverage for Employee and his dependents as are maintained or adopted from time-to-time by the Company.
The medical and dental insurance coverage shall begin at such time as the Company adopts such plans and shall continue throughout
the term of this Agreement.

 

 

 

 

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10.       Office
and Staff. In order to enable Employee to discharge his obligations and duties pursuant to this Agreement, the Company
agrees that it shall provide suitable office space for Employee in San Diego, California, or such other location as is mutually
agreed by the Employee and the Board of Directors, together with all necessary and appropriate supporting staff and secretarial
assistance, equipment, stationary, books and supplies as the Company can reasonably make available as it evolves. Employee agrees
that the office space and supporting staff presently in place is suitable for the purposes of this Agreement.

 

11.       Reimbursement
of Expenses. The Company shall reimburse Employee for all reasonable travel, mobile telephone, promotional and entertainment
expenses incurred in connection with the performance of Employee's duties hereunder, subject to Section 12 of this Agreement with
respect to automobile expenses. Employee's reimbursable expenses shall be paid promptly by the Company upon presentment by Employee
of an itemized list of invoices describing such expenses. All compensation provided in Sections 8, 9, 11 and 12 of this Agreement
shall be subject to customary withholding tax and other employment taxes, to the extent required by law.

 

12.       Automobile.
Notwithstanding anything else herein to the contrary, the Company shall pay to the Employee a fixed amount equal to the standard
published governmental mileage rate per mile for each mile driven for Company business during the term of this Agreement as reimbursement
to the Employee for all expenses incurred by the Employee for the use of his automobile for Company business purposes, including
but not limited to depreciation, repairs, maintenance, gasoline and insurance. After the expiration of the first year of the term
of this Agreement, the Company’s Board of Directors will review and may in its discretion determine to increase the Employee’s
automobile allowance or authorize the Company to lease an automobile for the Employee. Employee shall not be entitled to any other
reimbursement for the use of his automobile for business purposes.

 

13.       Vacation.
Employee shall be entitled to six weeks of paid vacation per year or pro rata portion of each year of service by Employee under
this Agreement, not to be taken consecutively without the prior approval of the Company’s Board of Directors, which will
not be unreasonably withheld. The Employee shall be entitled to the holidays provided in the Company's established corporate policy
for employees with comparable duties and responsibilities. Vacation will be earned and accrued on a prorated basis throughout a
given employment year.

 

14.       Rights
In And To Inventions And Patents.

 

14.1       Description
of Parties' Rights. The Employee agrees that with respect to any inventions made by him or the Company during the term
of this Agreement, solely or jointly with others, (i) which are made with the Company's equipment, supplies, facilities, trade
secrets or time, or (ii) which relate to the business of the Company or the Company's actual or demonstrably anticipated research
or development, or (iii) which result from any work performed by the Employee for the Company, such inventions shall belong to
the Company. The Employee also agrees that the Company shall have the right to keep such inventions as trade secrets, if the Company
chooses.

 

14.2       Disclosure
Requirements. For purposes of this Agreement, an invention is deemed to have been made during the term of this Agreement
if, during such period, the invention was conceived or first actually reduced to practice. In order to permit the Company to claim
rights to which it may be entitled, the Employee agrees to disclose to the Company in confidence the nature of all patent applications
filed by the Employee during the term of this Agreement.

 

15.       Termination.
This Agreement may be terminated in the following manner and not otherwise:

 

15.1       Mutual
Agreement. This Agreement may be terminated by the mutual written agreement of the Company and Employee to terminate.

 

 

 

 

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15.2       Termination
by Employee for Breach. Employee may at his option and in his sole discretion terminate this Agreement for the material
breach by the Company of the terms of this Agreement if the Company has not cured the breach within 30 days of receipt of written
notice of the breach from the Employee. In the event of such termination, Employee shall give the Company 30 day’s prior
written notice.

 

15.3       Termination
by the Company for Breach. The Company may at its option terminate this Agreement in the event that the Employee breaches
this Agreement, is convicted of committing a felony under federal, state or local law, commits gross negligence in the performance
of his duties under this Agreement, or breaches his fiduciary duty to the Company, to the Board of Directors or to the Company’s
shareholders; provided, however, that the Company shall give the Employee written notice of specific instances for the basis of
any termination of this Agreement by the Company pursuant to Section 15.3 of this Agreement. Employee shall have a period of 10
days after said notice in which to cease the alleged violations before the Company may terminate this Agreement. If Employee ceases
to commit the alleged violations within said 10 day period, the Company may not terminate this Agreement pursuant to this Section.
If Employee continues to commit the alleged violations after said 10-day period, the Company may terminate this Agreement immediately
upon written notification to Employee.

 

15.4       Termination
Upon Death. This Agreement shall terminate upon the death of the Employee.

 

15.5       Termination
Upon the Disability of the Employee. This Agreement shall terminate upon the disability of the Employee. As used in the
previous sentence, the term "disability" shall mean the complete disability to discharge Employee's duties and responsibilities
for a continuous period of not less than six months during any calendar year. Any physical or mental disability which does not
prevent Employee from discharging his duties and responsibilities in accordance with usual standards of conduct as determined by
the Company in its reasonable opinion shall not constitute a disability under this Agreement.

 

15.6       Termination
As A Result of A Change in Control of the Company. In the event of a Change in Control (as defined below) of the Company,
if the Employee, negotiating in good faith, is unable to come to an agreement with the surviving Company regarding an employment
agreement, then the Employee may terminate this Agreement.

 

“Change in Control"
means the occurrence of any of the following events:

 

(1)       The
consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if
more than 50% of the combined voting power of the continuing or surviving entity's securities outstanding immediately after such
merger, consolidation or other reorganization is not owned by persons who were stockholders of the Company immediately prior to
such merger, consolidation or other reorganization, in substantially the same relative proportions as their ownership of the combined
voting power of the Company immediately prior to such merger, consolidation or other reorganization;

 

(2)       There
is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company,
other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company to
an entity, more than 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company
in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior
to such sale, lease, license or other disposition;

 

(3)       When
a majority of the incumbent directors on the Board are replaced by new directors within any 18 month period; provided, however,
that each director (i) whose election has been approved by a vote of at least a majority of the directors who were either incumbent
directors at the beginning of the period or elected or nominated in accordance with clause (i) or (ii) of this Section during such
period or (ii) whose nomination for election by the Company's stockholders has been approved by a committee of the Board, a majority
of whose members are directors who were either incumbent directors at the beginning of the period or elected or nominated in accordance
with clause (i) or (ii) of this Section during such period shall be deemed to be an "incumbent director" and not a "new
director" for purposes of this Section; or

 

 

 

 

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(4)       Any
"person" that (as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) by
the acquisition or aggregation of securities is or becomes the beneficial owner, directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company's then outstanding securities ordinarily (and apart from rights
accruing under special circumstances) having the right to vote at elections of directors (the "Base Capital Stock");
except that any change in the relative beneficial ownership of the Company's securities by any person resulting solely from a reduction
in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person's ownership of
securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person's beneficial ownership
of any securities of the Company.

 

15.7       Other
Termination by Employee. If this Agreement is terminated by Employee in writing for a reason other than the Company’s
breach of this Agreement (i.e. voluntary resignation) then (a) Employer shall not be entitled to assert any claim against the Employee
for consequential or indirect damages or for lost profits as a result of the termination; and (b) Employee shall not be entitled
to any rights set forth in Section 16 of this Agreement except that Employee shall be entitled to the right to exercise vested
restricted stock or stock options, if any, for a period of 90 days after the date of the written notification of termination by
the Employee.

 

16.       Termination
Without Cause. If this Agreement is terminated by Employee for any reason pursuant to Section 15.2 or 15.6 of this Agreement
or by the Company in any manner except specifically in accordance with Section 15.1, 15.3, 15.4 or 15.5 of this Agreement, then
(i) the Company shall immediately pay to the Employee a lump sum payment in cash equal to four (4) times the Employee’s then
Annual Compensation, or in the event of a termination as a result of a Change in Control of the Company, the Company shall also
immediately pay to Employee a lump sum payment in cash equal to four (4) times the Employee's then Annual Compensation, in either
case as full accord and satisfaction of all amounts then owed by the Company to the Employee under Section 8.1 and 8.2 of this
Agreement, (ii) Employee shall be entitled to all of the benefits under Section 9 of this Agreement, as amended, for a period of
two years from the termination, and (iii) if applicable, all unvested restricted stock or stock options owned by Employee will
immediately vest, and Employee shall be entitled to exercise all vested stock options which he owns for a period of 90 days after
the date of termination. It is specifically agreed that in such event Employee shall have no duty to mitigate his damages by seeking
comparable, inferior or different employment.

 

17.       Assignability
of Benefits. Except to the extent that this provision may be contrary to law, no assignment, pledge, collateralization
or attachment of any of the benefits under this Agreement shall be valid or recognized by the Company. Except as provided by law,
payment provided for by this Agreement shall not be subject to seizure for payment of any debts or judgments against the Employee,
nor shall the Employee have any right to transfer, modify, anticipate or encumber any rights or benefits hereunder; provided that
any stock issued by the Company to the Employee pursuant to this Agreement shall not be subject to Section 17 of this Agreement.

 

18.       Indemnification
of Employee. The Company shall indemnify and hold Employee harmless as provided in Sections 18.1, 18.2 and 18.3 of this
Agreement. The Company shall, upon the request of Employee, assume the defense and directly bear all of the expense of any action
or proceedings which may arise for which Employee is entitled to indemnification pursuant to this Section.

 

18.1       Indemnification
of Employee for Actions by Third Parties. The Company hereby agrees to indemnify and hold Employee harmless from any liability,
claims, fines, damages, losses, expenses, judgments or settlements actually incurred by him, including but not limited to reasonable
attorneys' fees and costs actually incurred by him as they are incurred, as a result of Employee being made at any time a party
to, or being threatened to be made a party to, any proceeding (other than an action by or in the right of the Company, which is
addressed in Section 18.2 of this Agreement), relating to actions Employee takes within the scope of his employment as the President,
Chief Executive Officer and Corporate Secretary of the Company or in any other employment capacity, or in his role as a director
of the Company, provided that Employee acted in good faith and in a manner he reasonably believed to be in the best interest of
the Company and, in the case of a criminal proceeding, had no reasonable cause to believe his conduct was unlawful.

 

 

 

 

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18.2       Indemnification
of Employee for Actions in the Right of the Company. The Company hereby agrees to indemnify and hold Employee harmless
from any liability, claims, damages, losses, expenses, judgments or settlements actually incurred by him, including but not limited
to reasonable attorneys' fees and costs actually incurred by him as they are incurred, as a result of Employee being made a party
to, or being threatened to be made a party to, any proceeding by or in the right of the Company to procure a judgment in its favor
by reason of any action taken by Employee as an officer, director or agent of the Company, provided that Employee acted in good
faith in a manner he reasonably believed to be in the best interests of the Company and its shareholders, and provided further,
that no indemnification by the Company shall be required pursuant to this Section 18.2 (i) for acts or omissions that involve intentional
misconduct or a knowing and culpable violation of law, (ii) for acts or omissions that Employee believed to be contrary to the
best interests of the Company or its shareholders or that involve the absence of good faith on the part of Employee, (iii) for
any transaction from which Employee derived an improper personal benefit, (iv) for acts or omissions that show a reckless disregard
by Employee of his duties to the Company or its shareholders in circumstances in which Employee was aware, or should have been
aware, in the ordinary course of performing his duties, of a risk of serious injury to the Company or its shareholders, (v) for
acts or omissions that constitute an unexcused pattern of inattention that amounts to an abdication of Employee's duties to the
Company or its shareholders, or (vi) for any other act by Employee for which Employee is not permitted to be indemnified under
the Nevada General Corporations Law and, if applicable, the California Corporations Code. Furthermore, the Company has no obligation
to indemnify Employee pursuant to this Section 18.2 in any of the following circumstances:

 

A.       In
respect of any claim, issue, or matter as to which Employee is adjudged to be liable to the Company in the performance of his duties
to the Company and its shareholders, unless and only to the extent that the court in which such action was brought determines upon
application that, in view of all the circumstances of the case, he is fairly and reasonably entitled to indemnity for the expenses
and then only in the amount that the court shall determine.

 

B.       In
the event of the application of Section 18.2(A), then for amounts paid in settling or otherwise disposing of a threatened or pending
action without court approval.

 

C.       In
the event of the application of Section 18.2(A), then for expenses incurred in defending a threatened or pending action which is
settled or otherwise disposed of without court approval.

 

18.3       Reimbursement.
In the event that it is determined by a trier of fact that Employee is not entitled to indemnification by the Company pursuant
to Sections 18.1 or 18.2 of this Agreement, then Employee is obligated to reimburse the Company for all amounts paid by the Company
on behalf of Employee pursuant to the indemnification provisions of this Agreement. In the event that Employee is successful on
the merits in the defense of any proceeding referred to in Sections 18.1 or 18.2 of this Agreement, or any related claim, issue
or matter, then the Company will indemnify and hold Employee harmless from all fees, costs and expenses actually incurred by him
in connection with the defense of any such proceeding, claim, issue or matter.

 

19.       Directors'
and Officers' Liability Insurance. The Company will utilize its best efforts in good faith to purchase directors' and officers'
liability insurance for the officers and directors of the Company, which would include the same coverage for Employee. The Company
covenants to maintain in effect a directors’ and officers’ liability insurance policy on the same terms and conditions
as applicable to all other officers and directors of the Company.

 

 

 

 

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20.       Notice.
All notices and other communications required or permitted hereunder shall be in writing or in the form of an e-mail (confirmed
in writing) to be given only during the recipient’s normal business hours unless arrangements have otherwise been made to
receive such notice by e-mail outside of normal business hours, and shall be mailed by registered or certified mail, postage prepaid,
or otherwise delivered by hand, messenger, or e-mail (as provided above) addressed (a) if to the Employee, at the address for such
Employee set forth on the signature page hereto or at such other address as such Employee shall have furnished to the Company in
writing or (b) if to the Company, to its principal executive offices and addressed to the attention of the Chairman, or at such
other address as the Company shall have furnished in writing to the Employee.

 

In case of the Company:

 

Beam Global.

5660 Eastgate Drive

San Diego, CA 92121

Attention: Chairman

 

In case of the Employee:

 

Desmond Wheatley

the address on file with the Company
as supplied by Employee.

 

21.       Attorneys'
Fees. In the event that any of the parties must resort to legal action in order to enforce the provisions of this Agreement
or to defend such suit, the prevailing party shall be entitled to receive reimbursement from the nonprevailing party for all reasonable
attorneys' fees and all other costs incurred in commencing or defending such suit.

 

22.       Entire
Agreement. This Agreement embodies the entire understanding among the parties and merges all prior discussions or communications
among them, and no party shall be bound by any definitions, conditions, warranties, or representations other than as expressly
stated in this Agreement or as subsequently set forth in a writing signed by the duly authorized representatives of all of the
parties hereto.

 

23.       No
Oral Change; Amendment. This Agreement may only be changed or modified and any provision hereof may only be waived by a
writing signed by the party against whom enforcement of any waiver, change or modification is sought. This Agreement may be amended
only in writing by mutual consent of the parties.

 

24.       Severability.
In the event that any provision of this Agreement shall be void or unenforceable for any reason whatsoever, then such provision
shall be stricken and of no force and effect. The remaining provisions of this Agreement shall, however, continue in full force
and effect, and to the extent required, shall be modified to preserve their validity.

 

25.       Applicable
Law. This Agreement shall be construed as a whole and in accordance with its fair meaning. This Agreement shall be interpreted
in accordance with the laws of the State of California, and venue for any action or proceedings brought with respect to this Agreement
shall be in the County of San Diego in the State of California.

 

26.       Successors
and Assigns. Each covenant and condition of this Agreement shall inure to the benefit of and be binding upon the parties
hereto, their respective heirs, personal representatives, assigns and successors in interest. Without limiting the generality of
the foregoing sentence, this Agreement shall be binding upon any successor to the Company whether by merger, reorganization or
otherwise.

 

 

 

 

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27.       Application
of Internal Revenue Code Section 409A. (a) Notwithstanding anything to the contrary contained in this Agreement, if any
payment or reimbursement, or the provision of any benefit under this Agreement that is paid or provided upon Employee’s “separation
from service” with the Company within the meaning of the Internal Revenue Code of 1986, as amended (the “Code”),
Section 409A(a)(2)(A)(i) and would constitute a “deferral of compensation” under Code Section 409A and Employee is
a “specified employee” (as determined pursuant to procedures adopted by the Company in compliance with Code Section
409A) on the date of Employee’s “separation from service” with the Company within the meaning of Code Section
409A(a)(2)(A)(i), Employee will receive payment or reimbursement of such amounts or the provision of such benefits upon the earlier
of (i) the first day of the seventh month following the date of Employee’s “separation from service” with the
Company within the meaning of Section 409A(a)(2)(A)(i) of the Code or (ii) Employee’s death.

 

(b) To the
extent applicable, it is intended that this Agreement comply with the provisions of Code Section 409A, so that the income
inclusion provisions of Code Section 409A(a)(1) do not apply to Employee. This Agreement shall be administered in a manner
consistent with this intent. Reference to Code Section 409A is to Section 409A of the Internal Revenue Code of 1986, as
amended, and will also include any regulations or any other formal guidance promulgated with respect to such Section by the
U.S. Department of the Treasury or the Internal Revenue Service.

 

28.       Code
Section 280G. If any payment or benefit Employee would receive from the Company or otherwise (“Payment”) would
(i) constitute a “parachute payment” within the meaning of Code Section 280G, and (ii) but for this
sentence, be subject to the excise tax imposed by Code Section 4999 (the “Excise Tax”), then the Company shall
cause to be determined, before any amounts of the Payment are paid to Employee, which of the following two amounts would maximize
Employee’s after-tax proceeds: (i) payment in full of the entire amount of the Payment (a “Full Payment”),
or (ii) payment of only a part of the Payment so that Executive receives the largest payment possible without the imposition
of the Excise Tax (a “Reduced Payment”), whichever amount results in Employee’s receipt, on an after-tax basis,
of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.
For purposes of determining whether to make a Full Payment or a Reduced Payment, the Company shall cause to be taken into account
all applicable federal, state and local income and employment taxes and the Excise Tax (all computed at the highest applicable
marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and
local taxes). If a Reduced Payment is made, (i) the Payment shall be paid only to the extent permitted under the Reduced Payment
alternative, and Employee shall have no rights to any additional payments and/or benefits constituting the Payment, and (ii) reduction
in payments and/or benefits shall occur in the following order: reduction of cash payments, cancellation of accelerated vesting
of stock awards, and reduction of other benefits. In the event that acceleration of compensation from Employee’s equity awards
is to be reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant unless Employee elects
in writing a different order for cancellation.

 

 

 

 

 

 

[SIGNATURES ON FOLLOWING PAGE]

 

 

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Amended and Restated Employee Agreement on the date first above written.

 

 

	THE COMPANY:	 	Beam Global
	 	 	a Nevada corporation
	 	 	 
	Attest:	 	/s/ Tony Posawatz
	 	 	Tony Posawatz
	 	 	Chairman of the Compensation
Committee
	/s/ Peter Davidson	 	 
	Peter Davidson, Director	 	 
	 	 	 
	 	 	 
	EMPLOYEE:	By:  	 /s/ Desmond Wheatley
	 	 	Desmond Wheatley

 

 

 

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

EXHIBIT A

 

BONUS POTENTIAL MILESTONES

 

FISCAL YEARS ENDING DECEMBER 31, 2021
THROUGH December 31, 2025

 

 

 

 

 

 

 

FISCAL YEAR ENDING DECEMBER 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

FISCAL QUARTER ENDING MARCH 31, 2021
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING JUNE 30, 2021
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING SEPTEMBER 30,
2021 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING DECEMBER 31,
2021 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

    	 	11	 

     

    

 

FISCAL YEAR ENDING DECEMBER 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FISCAL QUARTER ENDING MARCH 31, 2022
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING JUNE 30, 2022
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING SEPTEMBER 30,
2022 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING DECEMBER 31,
2022 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

    	 	12	 

     

    

 

FISCAL YEAR ENDING DECEMBER 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FISCAL QUARTER ENDING MARCH 31, 2023
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING JUNE 30, 2023
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING SEPTEMBER 30,
2023 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING DECEMBER 31,
2023 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

    	 	13	 

     

    

 

FISCAL YEAR ENDING DECEMBER 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FISCAL QUARTER ENDING MARCH 31, 2024
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING JUNE 30, 2024
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING SEPTEMBER 30,
2024 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING DECEMBER 31,
2024 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

    	 	14	 

     

    

 

FISCAL YEAR ENDING DECEMBER 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FISCAL QUARTER ENDING MARCH 31, 2025
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING JUNE 30, 2025
(IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING SEPTEMBER 30,
2025 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

FISCAL QUARTER ENDING DECEMBER 31,
2025 (IF APPLICABLE)

(If no quarterly bonus mark NA)

 

 

 

 

 

 

    	 	15	 

     

    

 

FISCAL YEAR ENDING DECEMBER 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	16Exhibit 10.2

 

BEAM GLOBAL

 

CHANGE IN CONTROL SEVERANCE BENEFIT PLAN

 

Section 1.

 

The Beam Global Change in Control Severance
Benefit Plan (the “Plan”) was established on February 9, 2021 (the "Adoption Date"). The purpose of the Plan
is to provide severance benefits to certain eligible employees of the Company and its Affiliates upon selected terminations of
service in connection with a Change in Control (as defined below).

 

This Plan shall supersede any generally
applicable change in control severance plan, policy, or practice, whether written or unwritten, with respect to each employee who
becomes a Participant in the Plan. In consideration for the benefits set forth in this Plan, this Plan shall also supersede and
replace the change in control benefits in any individually negotiated employment contract or agreement, or any written plans that
are not of general application, and, except as set forth in the Participation Notice (as defined below), each Participant's change
in control severance benefits shall be governed solely by the terms of this Plan.

 

This Plan document is also the Summary Plan Description for
the Plan.

 

Section 2. DEFINITIONS.

 

The following shall be defined terms for purposes of the Plan:

 

(a) "Affiliate" means, with respect
to any individual or entity, any other individual or entity who, directly or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with, such individual or entity.

 

(b) "Base Salary" means a Participant's
monthly base salary in effect immediately prior to the Covered Termination and prior to any reduction in base salary that would
permit such Participant to voluntarily terminate employment for Good Reason (as defined below) (including without limitation any
compensation that is deferred by Participant into a Company-sponsored retirement or deferred compensation plan, exclusive of any
employer matching contributions by the Company associated with any such retirement or deferred compensation plan and exclusive
of any other Company contributions) and excludes all bonuses, commissions, expatriate premiums, fringe benefits (including without
limitation car allowances), option grants, equity awards, employee benefits and other similar items of compensation.

 

(c) "Board" means the Board of Directors of the Company.

 

(d) "Cause" means with respect
to a Participant, the occurrence of any of the following events: (i) such Participant's commission of any felony or any crime involving
fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) such Participant's attempted
commission of, or participation in, a fraud or act of dishonesty against the Company; (iii) such Participant's intentional, material
violation of any contract or agreement between the Participant and the Company or of any statutory duty owed to the Company; (iv)
such Participant's unauthorized use or disclosure of the Company's confidential information or trade secrets; or (v) such Participant's
gross misconduct. The determination that a termination of the Participant's employment is either for Cause or without Cause shall
be made by the Company in its sole discretion. Any determination by the Company that the employment of a Participant was terminated
by reason of dismissal without Cause for the purposes of this Plan shall have no effect upon any determination of the rights or
obligations of the Company or such Participant for any other purpose.

 

 

 

 

    	 	1	 

     

    

 

(e) "Change in Control" means
the occurrence of any of the following events prior to the automatic termination of this Plan as provided in Section 6(b):

 

(1) The consummation of a merger or consolidation
of the Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power
of the continuing or surviving entity's securities outstanding immediately after such merger, consolidation or other reorganization
is not owned by persons who were stockholders of the Company immediately prior to such merger, consolidation or other reorganization,
in substantially the same relative proportions as their ownership of the combined voting power of the Company immediately prior
to such merger, consolidation or other reorganization;

 

(2) There is consummated a sale, lease,
exclusive license or other disposition of all or substantially all of the assets of the Company, other than a sale, lease, license
or other disposition of all or substantially all of the consolidated assets of the Company to an entity, more than 50% of the combined
voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as
their ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition;

 

(3) When a majority of the incumbent directors
on the Board are replaced by new directors within any 18 month period; provided, however, that each director (i) whose election
has been approved by a vote of at least a majority of the directors who were either incumbent directors at the beginning of the
period or elected or nominated in accordance with clause (i) or (ii) of this Section 2(e)(3) during such period or (ii) whose nomination
for election by the Company's stockholders has been approved by a committee of the Board, a majority of whose members are directors
who were either incumbent directors at the beginning of the period or elected or nominated in accordance with clause (i) or (ii)
of this Section 2(e)(3) during such period shall be deemed to be an "incumbent director" and not a "new director"
for purposes of this Section 2(e)(3); or

 

(4) Any "person" that (as such
term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) by the acquisition or aggregation
of securities is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 50% or more
of the combined voting power of the Company's then outstanding securities ordinarily (and apart from rights accruing under special
circumstances) having the right to vote at elections of directors (the "Base Capital Stock"); except that any change
in the relative beneficial ownership of the Company's securities by any person resulting solely from a reduction in the aggregate
number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person's ownership of securities, shall
be disregarded until such person increases in any manner, directly or indirectly, such person's beneficial ownership of any securities
of the Company.

 

The term "Change in Control" shall
not include a transaction, the sole purpose of which is to change the state of the Company's incorporation.

 

(f) "Company" means Beam Global
or, following a Change in Control, the surviving entity resulting from such transaction or the parent company of such surviving
entity.

 

(g) "Compensation Committee" means the Compensation
Committee of the Board.

 

(h) "Covered Termination" means,
with respect to a Participant who immediately prior to a termination of employment was an employee of the Company, such Participant's
termination of employment by the Company without Cause or a voluntary resignation of employment by the Participant for Good Reason;
provided that the involuntary termination or the event giving rise to the resignation for Good Reason, as applicable, occurs within
the three-months prior to, or 12 months following, the effective date of a Change in Control.

 

 

 

 

    	 	2	 

     

    

 

(i) "Good Reason" means, with
respect to a Participant, the occurrence of one or more of the following events, if applicable, without such Participant's express
written consent:

 

(1) A material reduction in such Participant's
authority, duties or responsibilities (and not simply a change in title or reporting relationships);

 

(2) A material reduction by the Company in such Participant's
Base Salary;

 

(3) A material adverse change by the Company
to Participant's Target Bonus or to the criteria, milestones or objectives related to such Participant' s Target Bonus that is
reasonably likely to result in the Participant earning less than his or her Target Bonus during the subsequent applicable period;

 

(4) A relocation of the Participant's principal
place of work to a location that would increase the Participant's one-way commute from his or her personal residence to the new
principal place of work by more than 50 miles.

 

Notwithstanding the foregoing, a Participant shall have "Good
Reason" for his or her resignation only if: (a) the Participant notifies the Company in writing, within 30 days after the
occurrence of one of the foregoing events, that he or she intends to terminate his or her employment no earlier than 30 days after
providing such notice; (b) the Company does not cure such condition within 30 days following its receipt of such notice or states
unequivocally in writing that it does not intend to attempt to cure such condition; and (c) the Participant resigns from employment
within 180 days following the end of the period within which the Company was entitled to remedy the condition constituting Good
Reason but failed to do so.

 

(j) "Health Severance Benefits Period" means 24 months.

 

(k) "Participant" means an individual who (i) is employed
by the Company or its Affiliates,

 

(ii) has been designated eligible to participate in the Plan
by the Compensation Committee in its sole discretion (either by a specific designation or by virtue of being a member of a class
of employees who have been so designated) and (iii) who has received a Participation Notice from the Company and elected to participate
in the Plan by executing and returning such Participation Notice to the Company within the time period set forth therein.

 

(l) "Participation Notice" means
the latest notice delivered by the Company to a Participant substantially in the form of Exhibit A hereto or such other form as
may be approved by the Plan Administrator.

 

(m) "Payment Commencement Date"
means, with respect to a Participant, (i) if such Covered Termination occurs prior to the applicable Change in Control, the later
of (A) such Change in Control or (B) the effective date of the Release (as defined below) or (ii) if such Covered

 

Termination occurs on or after the applicable Change in Control,
the later of (X) the date of such Covered Termination or (Y) the effective date of the Release.

 

(n) “Plan Administrator” means the Board.

 

(o) "Target Bonus" means the
target bonus (i.e., the annual bonus amount payable to a Participant in cash, common stock or other property if exactly 100% of
all performance goals are achieved) most recently approved by the Compensation Committee or the Board for such Participant prior
to the earlier of (i) the Payment Commencement Date and (ii) any reduction in Target Bonus that would permit such Participant to
voluntarily terminate employment for Good Reason.

 

 

 

 

    	 	3	 

     

    

 

(p) "Vesting Acceleration Benefit"
means the remainder of all vesting installments, whether time-based or performance-based, for a Participant.

 

The following additional terms are defined in the Section identified
below:

 

	 	TERM	SECTION
	 	"Additional Gross-Up Payment"	5(d)(3).
	 	"Adoption Date"	1
	 	"COBRA"	7(a)
	 	"Code"	4(a)(3)
	 	"ERISA"	9
	 	"Excise Tax"	5(d)
	 	"Gross-Up Pay1nent"	5(d)
	 	"Payment"	5(d)
	 	"Plan"	1
	 	"Release"	3

 

Section 3.ELIGIBILITY FOR BENEFITS.

 

Subject to the requirements set forth in
this Section, the Company shall provide change in control severance benefits under the Plan to the Participants. In order to be
eligible to receive benefits under the Plan, a Participant must (i) experience a Covered Termination and (ii) execute a general
waiver and release (the "Release") in substantially the form attached hereto as Exhibit B (or as then may be required
by law to effect a release of claims), and such Release must become effective in accordance with its terms; provided, however,
that no such Release shall require the Participant to forego any unpaid salary, any accrued but unpaid vacation pay or any benefits
payable pursuant to this Plan. With respect to any outstanding option held by the Participant, no provision set forth in this Plan
granting the Participant additional rights to exercise the option can be exercised unless and until the Release becomes effective.

 

The Participant must execute the Release
within the time period set forth therein, but in no event later than (x) if a Change in Control shall have occurred prior to such
Covered Termination, 45 days following termination of employment or (y) if a Change in Control shall not have occurred prior to
such Covered Termination, the later of (A) 45 days following termination of employment or (B) ten days following such Change in
Control, and such release must become effective in accordance with its terms.

 

Unless a Change in Control has occurred,
the Plan Administrator, in its sole discretion, may modify the form of the required Release to comply with applicable law and shall
determine the form of the required Release, which may be incorporated into a termination agreement or other agreement with the
Participant; provided, that, after a Change in Control occurs, the Plan Administrator may modify the form of required Release only
if necessary to comply with applicable law.

 

Section 4.AMOUNT OF BENEFIT.

 

(a) Provision of Benefits. Subject to the
limitations and reductions provided in this Plan, benefits under this Plan, if any, shall be provided to the Participants described
in Section 3 in the following amounts. Effective commencing with the Payment Commencement Date, such Participant shall receive
the following severance package:

 

(1) Cash Severance Benefits. The Company
shall make a cash severance payment to the Participant in an amount equal to 24 months of Base Salary. Any such payment pursuant
to this Section 4(a)(l) shall be in a single lump sum to be paid within 10 days following the Payment Commencement Date.

 

 

 

 

    	 	4	 

     

    

 

(2) Bonus Severance Benefits. The Company
shall make a cash severance payment to the Participant in an amount equal to such Participant's Target Bonus. Any such bonus payment
pursuant to this Section 4(a)(2) shall be in a single lump sum to be paid within 10 days following the Payment Commencement Date.

 

(3) Health Severance Benefits. During the
Health Severance Benefits Period, the Company will pay all premiums for group medical, dental and vision coverage elected by such
Participant for the Participant and his or her eligible dependents under any individual policy providing group medical, dental
and vision benefits substantially similar to those provided to Participant immediately prior to his or her termination of Service.

 

(4) Equity Award Acceleration. The vesting
and exercisability of all outstanding options to purchase the Company's common stock issued pursuant to any equity incentive plan
of the Company or any Affiliate that are then held by the Participant on such date shall be accelerated to the extent applicable
so that the Participant shall receive the Vesting Acceleration Benefit, any reacquisition or repurchase rights held by the Company
in respect of common stock issued pursuant to any other stock award granted to the Participant by the Company shall lapse so that
the Participant shall receive the Vesting Acceleration Benefit, and the vesting of any other stock awards granted to the Participant
by the Company, and any issuance of shares triggered by the vesting of such stock awards, shall be accelerated so that the Participant
shall receive the Vesting Acceleration Benefit. If the Covered Termination occurs prior to the applicable Change in Control, such
vesting acceleration shall be deemed effective as of the date of the Covered Termination. Notwithstanding the foregoing, this Section
4(a)(4) shall not apply to stock awards issued under or held in any plan sponsored by the Company or an Affiliate that is intended
to be qualified under Section 40l(a) of the Internal Revenue Code. Notwithstanding the provisions of this Section 4(a)(4), in the
event that the provisions of this Section 4(a)(4) regarding acceleration of vesting of an option would adversely affect a Participant's
option (including, without limitation, its status as an incentive stock option under Section 422 of the Code) that is outstanding
on the date the Participant commences participation in the Plan, such acceleration of vesting shall be deemed null and void as
to such option unless the affected Participant consents in writing to such acceleration of vesting as to such option at the time
he or she becomes a Participant.

 

(b) Certain Reductions. Notwithstanding
any other provision of the Plan to the contrary, any benefits payable to a Participant under Sections 4(a) of this Plan shall be
reduced (but not below zero) by any severance benefits payable by the Company or an Affiliate to such Participant under any other
policy, plan, program, agreement or arrangement, including, without limitation, a contract between such Participant and any entity,
covering such Participant. In addition, to the extent that any federal, state or local laws, including, without limitation the
Worker Adjustment Retraining Notification Act, 29 U.S.C. Section 2101 et seq., or any similar state statute, require the Company
to give advance notice or make a payment of any kind to a Participant because of that Participant's involuntary termination due
to a layoff, reduction in force, plant or facility closing, sale of business, change of control, or any other similar event or
reason, the benefits payable under Sections 4(a)(l) and 4(a)(3) of this Plan shall either be reduced or eliminated by such required
payments or notice. The benefits provided under this Plan are intended to satisfy any and all statutory obligations that may arise
out of a Participant's involuntary termination of employment for the foregoing reasons, and the Plan Administrator shall so construe
and implement the terms of the plan.

 

(c) Application of Section 409A. Any compensation
and benefits payable under the Plan are intended to be payable pursuant to the "short-tern deferral" rule set forth in
Section l .409A-l(b)(4) of the Treasury Regulations. Notwithstanding the foregoing, if the Company determines that any payments
hereunder fail to satisfy the distribution requirement of Section 409A(a)(2)(A) of the Code, the payment of such benefit shall
be delayed until six months after separation from service if the Participant is a "specified employee" within the meaning
of the aforesaid section of the Code at the time of such separation from service.

 

 

 

 

    	 	5	 

     

    

 

(d) Withholding. All payments under the
Plan will be subject to all applicable withholding obligations of the Company, including, without limitation, obligations to withhold
for federal, state and local income and employment taxes.

 

Section 5.LIMITATIONS ON BENEFITS.

 

(a) Mitigation. Except as otherwise specifically
provided herein, a Participant shall not be required to mitigate damages or the amount of any payment provided under the Plan by
seeking other employment or otherwise, nor shall the amount of any payment provided for under the Plan be reduced by any compensation
earned by a Participant as a result of employment by another employer or any retirement benefits received by such Participant after
the date of service or employment termination.

 

(b) Non-Duplication of Benefits. No Participant
is eligible to receive benefits under this Plan more than one time.

 

(c) Indebtedness of Participants. To the
extent permitted by law, if a Participant is indebted to the Company or an Affiliate on the date of his or her termination of employment
or service, the Company reserves the right to offset any severance benefits payable in cash under the Plan by the amount of such
indebtedness. A Participant may be required to execute an agreement to such effect if requested by the Company.

 

Section 6.RIGHT TO INTERPRET PLAN; AMENDMENT AND TERMINATION.

 

(a) Exclusive Discretion. The Plan Administrator
shall have the exclusive discretion and authority to establish rules, forms, and procedures for the administration of the Plan
and to construe and interpret the Plan and to decide any and all questions of fact, interpretation, definition, computation or
administration arising in connection with the operation of the Plan, including, but not limited to, the eligibility to participate
in the Plan and amount of benefits paid under the Plan. The rules, interpretations, computations, and other actions of the Plan
Administrator shall be binding and conclusive on all persons.

 

(b) Change of State of Incorporation, Amendment
or Termination. The Board reserves the right to change the state of incorporation, and the Board and the Compensation Committee
reserve the right to amend or terminate this Plan or the benefits provided hereunder at any time; provided, however, that no such
change of state, amendment or termination shall impair or reduce the rights of a Participant unless such Participant consents to
such amendment or termination of the Plan in writing. Notwithstanding the foregoing, the Plan shall automatically terminate on
the tenth anniversary from the Adoption Date, unless extended by the Board or the Compensation Committee. Any action amending,
te1minating or extending the Plan shall be in writing and executed by the Board or the Compensation Committee.

 

Section 7.CONTINUATION OF CERTAIN EMPLOYEE BENEFITS.

 

(a) COBRA. Each Participant who is enrolled
in a group medical, dental or vision plan sponsored by the Company or an Affiliate may be eligible to continue coverage under such
group medical, dental or vision plan (or to convert to an individual policy), at the time of the Participant's termination of employment
under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"). The Company will notify the Participant of
any such right to continue group medical coverage at the time of termination of the Health Severance Benefits. No provision of
this Plan will affect the continuation coverage rules under COBRA. Therefore, the period during which a Participant may elect to
continue the Company's group medical, dental or vision coverage at his or her own expense under COBRA, the length of time during
which COBRA coverage will be made available to the Participant, and all other rights and obligations of the Participant under COBRA
will be applied in the same manner that such rules would apply in the absence of this Plan. At the conclusion of the COBRA premium
reimbursements made by the Company, if any, the Participant will be responsible for the entire payment of premiums required under
COBRA for the duration, if any, of the COBRA period.

 

 

 

 

    	 	6	 

     

    

 

(b) Other Employee Benefits. All non-health
benefits (such as life insurance, AD&D, disability and 40l(k) plan coverage) terminate as of an employee's termination date
(except to the extent that a conversion privilege may be available thereunder).

 

Section 8.NO IMPLIED EMPLOYMENT CONTRACT.

 

The Plan shall not be deemed (i) to give
any employee or other person any right to be retained in the employ or service of the Company or (ii) to interfere with the right
of the Company to discharge any employee or other person at any time and for any reason, which right is hereby reserved.

 

Section 9.LEGAL CONSTRUCTION.

 

This Plan is intended to be governed by
and shall be construed in accordance with the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and,
to the extent not preempted by ERISA, the laws of the State of California. The Plan, as a "severance pay arrangement"
within the meaning of Section 3(2)(B)(i) of ERISA, is intended to be excepted from the definitions of "employee pension benefit
plan" and "pension plan" set forth under section 3(2) of ERISA, and is intended to meet the descriptive requirements
of a plan constituting a "severance pay plan" within the meaning of regulations published by the Secretary of Labor at
Title 29, Code of Federal Regulations §2510.3-2(b).

 

Section 10.CLAIMS, INQUIRIES AND APPEALS.

 

(a) Applications for Benefits and Inquiries.
Any application for benefits, inquiries about the Plan or inquiries about present or future rights under the Plan must be submitted
to the Plan Administrator in writing by an applicant (or his or her authorized representative). The Plan Administrator is:

 

Beam Global

Attn: Chief Financial Officer

5660 Eastgate Dr.

San Diego, CA 92127

 

(b) Denial of Claims. In the event that
any application for benefits is denied in whole or in parti, the Plan Administrator must provide the applicant with written or
electronic notice of the denial of the application, and of the applicant's right to review the denial. Any electronic notice will
comply with the regulations of the U.S. Department of Labor. The written notice of denial will be set forth in a manner designed
to be understood by the employee and will include specific reasons for the denial, specific references to the Plan provision upon
which the denial is based, a description of any information or material that the Plan Administrator needs to complete the review
and an explanation of the Plan's review procedure. This written notice will be given to the applicant within 90 days after the
Plan Administrator receives the application, unless special circumstances require an extension of time, in which case, the Plan
Administrator has up to an additional 90 days for processing the application. If an extension of time for processing is required,
written notice of the extension will be furnished to the applicant before the end of the initial 90-day period. This notice of
extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator
is to render its decision on the application. If written notice of denial of the application for benefits is not furnished within
the specified time, the application shall be deemed to be denied. The applicant will then be permitted to appeal the denial in
accordance with the review procedure described below.

 

(c) Request for a Review. Any person (or
that person's authorized representative) for whom an application for benefits is denied, in whole or in part, may appeal the denial
by submitting a request for a review to the Compensation Committee within 60 days after the application is denied. A request for
a review shall be in writing and shall be addressed to:

 

Compensation Committee

Attn: Chairman

c/o Beam Global

5660 Eastgate Dr.

San Diego, CA 92121

 

 

 

    	 	7	 

     

    

 

A request for review must set forth all
of the grounds on which it is based, all facts in support of the request and any other matters that the applicant feels are pertinent.
The applicant (or his or her representative) shall have the opportunity to submit (or the Compensation Committee may require the
applicant to submit) written comments, documents, records, and other information relating to his or her claim. The applicant (or
his or her representative) shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to his or her claim. The review shall take into account all comments, documents, records
and other information submitted by the applicant (or his or her representative) relating to the claim, without regard to whether
such information was submitted or considered in the initial benefit determination.

 

(d) Decision on Review. The Compensation
Committee will act on each request for review within 60 days after receipt of the request, unless special circumstances require
an extension of time (not to exceed an additional 60 days), for processing the request for a review. If an extension for review
is required, written notice of the extension will be furnished to the applicant within the initial 60 day period. This notice of
extension will describe the special circumstances necessitating the additional time and the date by which the Compensation Committee
is to render its decision on the review. The Compensation Committee will give prompt, written or electronic notice of its decision
to the applicant. Any electronic notice will comply with the regulations of the U.S. Department of Labor. In the event that the
Compensation Committee confirms the denial of the application for benefits in whole or in part, the notice will set forth, in a
manner calculated to be understood by the applicant, the specific Plan provisions upon which the decision is based. If written
notice of the Plan Administrator's decision is not given to the applicant within the time prescribed in this Section 10(d) the
application will be deemed denied on review.

 

(e) Rules and Procedures. The Plan Administrator
will establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its
responsibilities in reviewing benefit claims. The Plan Administrator may require an applicant who wishes to submit additional information
in connection with an appeal from the denial of benefits to do so at the applicant’s own expense.

 

(f) Exhaustion of Remedies. No legal action
for benefits under the Plan may be brought until the claimant (i) has submitted a written application for benefits in accordance
with the procedures described by Section 10(a) above, (ii) has been notified by the Plan Administrator that the application is
denied (or the application is deemed denied due to the Plan Administrator's failure to act on it within the established time period),
(iii) has filed a written request for a review of the application in accordance with the appeal procedure described in. Section
10(c) above, and (iv) has been notified in writing that the Compensation Committee has denied the appeal (or the application is
deemed denied due to the Plan Administrator’s failure to act on it within the established time period).

 

Section
11.BASIS OF PAYMENTS TO AND FROM PLAN.

 

All benefits under the Plan shall be paid
by the Company. The Plan shall be unfunded and benefits hereunder shall be paid only from the general assets of the Company. A
Participant's right to receive payments under the Plan is no greater than that of the Company's unsecured general creditors. Therefore,
if the Company were to become insolvent, the Participant might not receive benefits under the

Plan.

 

Section 12.SUCCESSORS AND ASSIGNS.

 

This Plan shall be binding upon any surviving
entity resulting from a Change in Control and upon any other person who is a successor by merger, acquisition, consolidation or
otherwise to the business formerly carried on by the Company without regard to whether or not such person actively adopts or formally
continues the Plan. Participants, to the extent they are otherwise eligible for benefits under the Plan, are intended third party
beneficiaries of this provision.

 

Section 13.EXECU'I'ION.

 

To record the adoption of the Plan as set
forth herein, Beam Global has caused its duly authorized officer to execute the same this 9th day of February 2021.

 

 

Beam Global

 

 

/s/ Anthony Posawatz                                            

Anthony Posawatz

Chairman of the Compensation Committee

 

 

    	 	8	 

     

    

 

EXHIBIT A

PARTICIPATION NOTICE AND ACKNOWLEDGEMENT

 

To:  _______________________________________

 

Date:  ______________________________________

 

Deadline to Return Participation Notice:  _______________

 

Beam Global (the "Company") has adopted the Change
in Control Severance Benefit Plan (the "Plan"). The Company is providing you with this Participation Notice to inform
you that you have been designated as a Participant in the Plan. A copy of the Plan document is attached to this Participation Notice.
The terms and conditions of your participation in the Plan are as set forth in the Plan and this Participation Notice, which together
also constitute a summary plan description of the Plan.

 

In consideration for the benefits set forth in the Plan, each
Participant's change in control benefits shall be governed by the terms of the Plan and the Plan shall supersede and replace any
individually negotiated change in control benefits in any employment contract or agreement and all change in control benefits payable
to you as set forth in any agreement, including offer letters, with the Company entered into prior to the date hereof.

 

If you choose to participate in the Plan, please return to the
Company (Attn. Chief Financial Officer) a copy of this Participation Notice and Acknowledgement signed by you and retain a copy,
along with the Plan document, for your records. Please note that you are not a Participant in the Plan until you execute and return
this Participation Notice and Acknowledgement to the Company.

 

The undersigned hereby acknowledges receipt of the foregoing
Participation Notice. In the event the undersigned holds outstanding stock options as of the date of this Participation Notice,
the undersigned hereby (check one box-failure to check a box will be deemed the selection of the second alternative):

 

	 	☐	accepts all of the benefits of Section 4(a)(4) of the Plan regardless of any potential adverse effects on any outstanding option
	 	 	 	 
	 	☐	accepts the benefits of Sections 4(a)(4) of the Plan that have no adverse effect on outstanding options or other stock awards and rejects the benefits of Sections 4(a)(4) of the Plan as to those outstanding options and other stock awards that would have potential adverse effects
	 	 	 	 
	 	☐	other (please describe): 	 
	 	 	 	 

 

The undersigned acknowledges that he/she has been advised to
obtain tax and financial advice regarding the consequences of this election including the effect, if any, on the status of the
stock options for tax purposes under Sections 409A and 422 of the Internal Revenue Code.

 

 

	Beam Global	 	[Participant Name]
	 	 	 	 
	By:	 	 	 
	Its: 	 	 	Participant Signature

 

 

 

    	 	9	 

     

    

 

EXHIBIT B

RELEASE AGREEMENT

 

I understand and agree completely to the terms set forth in
the Beam Global Change in Control Severance Benefit Plan (the "Plan").

 

I understand that this Release, together with the Plan, constitutes
the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter
hereof. I am not relying on any promise or representation by the Company that is not expressly stated therein. This Release and
Waiver may only be modified by a writing signed by both me and a duly authorized officer of the Company. Certain capitalized terms
used in this Release are defined in the Plan.

 

I hereby confirm my obligations under the Company's Employee
Proprietary Information and Inventions Agreement.

 

In exchange for the consideration to be provided to me under
the Plan to which I am not otherwise entitled, I hereby generally and completely release American Technology Corporation and its
current and former directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent
and subsidiary entities, insurers, affiliates, and assigns (collectively, the "Released Patties") from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions
occurring prior to my signing this Agreement (collectively, the "Released Claims"). The Released Claims include, but
are not limited to: (1) all claims arising out of or in any way related to my employment with the Company, or the termination of
that employment; (2) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions,
vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in
the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and
fair dealing; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public
policy; and (5) all federal, state, and local statuto1y claims, including claims for discrimination, harassment, retaliation, attorneys'
fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities
Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) ("ADEA''), and the California Fair Employment
and Housing Act (as amended). Notwithstanding the foregoing, the following are not included in the Released Claims (the "Excluded
Claims"): (1) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the
Company to which I am a party, the charter, bylaws, or operating agreements of the Company, or under applicable law; or (2) any
rights which are not waivable as a matter of law. In addition, nothing in this Release prevents me from filing, cooperating with,
or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor, or the California
Department of Fair Employment and Housing, except that I hereby waive my right to any monetary benefits in connection with any
such claim, charge or proceeding. I hereby represent and warrant that, other than the Excluded Claims, I am not aware of any claims
I have or might have against any of the Released Patties that are not included in the Released Claims.

 

I acknowledge and represent that I have not suffered any age
or other discrimination, harassment, retaliation, or wrongful treatment by any Released Party. I also acknowledge and represent
that I have not been denied any rights including, but not limited to, rights to a leave or reinstatement from a leave under the
Family and Medical Leave Act of 1993, the California Family Rights Act, the Uniformed Services Employment and Reemployment Rights
Act of 1994, or any similar law of any jurisdiction. I further acknowledge that I am knowingly and voluntarily waiving and releasing
any rights I may have under the ADEA. I also acknowledge that the consideration given for the Released Claims is in addition to
anything of value to which I was already entitled. I further acknowledge that I have been advised by this writing, as required
by the ADEA, that: (a) the Released Claims do not apply to any rights or claims that arise after the date I sign this Release;
(b) I should consult with an attorney prior to signing this Release (although I may choose voluntarily not to do so); (c) I have
21 days to consider this Release (although I may choose to voluntarily to sign it sooner); (d) I have seven days following the
date I sign this Release to revoke the Release by providing written notice to an officer of the Company; and (e) the Release will
not be effective until the date upon which the revocation period has expired unexercised, which will be the eighth day after I
sign this Release ("Effective Date").

 

 

 

 

    	 	10	 

     

    

 

I acknowledge that I have read and understand Section 1542 of
the California Civil Code which reads as follows: "A general release does not extend to claims which the creditor does not
know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially
affected his or her settlement with the debtor." I hereby expressly waive and relinquish all rights and benefits under that
section and any law of any jurisdiction of similar effect with respect to my release of any claims hereunder.

 

I hereby represent that I have been paid all compensation owed
and for all hours worked, I have received all the leave and leave benefits and protections for which I am eligible, and I have
not suffered any onthe-job injury for which I have not already filed a workers' compensation claim.

 

EMPLOYEE

 

 

____________________________

Employee Signature

 

____________________________

Employee Name

 

Date: ________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	11

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