Document:

f8k0210ex10xvii_envision.htm

    
      Exhibit 10.17

       

       

      
        	 	
                Chevron
      Energy Solutions Company, 

                a
      division of Chevron U.S.A. Inc.

                Chevron E5 Contract #:
      4012

              

      

      
 

      CONSULTING
SERVICES AGREEMENT

    

     

    

     

    Consultant:  Envision Solar International. Inc.             Consultant
Address: 4225 Executive
Square           

                                                        
                                                                                                        
Suite 1000                
  

    Consultant
Phone: 858-768-5151                                                                                             
La Jolla. CA
92037                                   

    

    Taxpayer
Identification # (or SS #): 26-1342810                        

    

    

    This
Consulting Services Agreement ("Contract") is entered into effective as of
October 23, 2008, by and between Consultant and Chevron Energy Solutions
Company, a division of Chevron U.S.A. Inc., a Pennsylvania corporation, with
principal offices at 345 California Street, 18th
Floor, San Francisco, CA 94104 ("Company"). The parties hereto agree as
follows:

     

    
      	
              1.

            	
              Work
      Orders.
      Under this Contract, Consultant shall provide the services (the
      "Services") and Deliverables (as hereinafter defined), described on Work
      Orders which shall, from time to time, be attached hereto and incorporated
      herein by reference. Individual Work Orders issued under this Contract
      shall constitute Amendments to this Contract and will be fully
      incorporated herein. Each Work Order shall set forth the scope
      of work (for both Services and Deliverables) to be performed by
      Consultant, payment amount and project schedule. The deliverables
      identified in the Work Orders, and all notes, drafts, drawings, works
      authored, inventions, and other information and materials created,
      conceived, or reduced to practice by consultant in completing those
      deliverables shall be collectively referred to herein as the
      "Deliverables". Each Work Order shall be subject to all the terms
      and
      conditions of this Contract, but shall constitute a separate
      and independent performance obligation of the part of Consultant and
      payment obligation on the part of
Company.

            

    

     

    
      	
              2.  

            	
              Use
      of Subcontractors. Consultant shall not subcontract, assign,
      or transfer any of its rights or obligations under this Contract without
      the prior written consent of Company. If Company so consents, Consultant
      shall remain liable and responsible to Company for the work of any
      subcontractor to the same extent as if the work had been performed by
      Consultant,

            

    

     

    
      	
              3.  

            	
              Changes in
      Scone of Work. Company requested changes in the Scope of Work,
      including Services to be provided and Deliverables, and changes to
      compensation and project schedule shall be made by a subsequently executed
      Change Order, or new Work Order. Prior to issuing a Change Order or new
      Work Order, Company may request
      from Consultant a detailed estimate in writing of the cost for such extra
      work, and its impact on current work and scheduled completion dates,
      including (i) a description of work to be performed, including detailed
      breakdown by identifiable tasks; (ii) the estimated cost of each task; and
      (111) the expected dale or completion of each task. Consultant shall not
      proceed with any such additional requested work prior to receiving written
      Change Order or new Work Order authorizing the Consultant to perform the
      requested changes. If Company requests certain changes to the work that
      Consultant believes is outside an existing Scope ot Work, before
      proceeding with such work, Consultant shall notify Company in writing
      stating why it believes such work is not included in an existing Scope of
      Work, and Consultant's estimate of the additional cost of such work and
      additional time required to perform, if applicable. If the parties
      disagree on whether or not certain work is within an existing Scope of
      Work, Consultant shall proceed with performing such work under protest and
      such dispute shall be resolved in accordance with Section 21, "Dispute
      Resolution".

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

     

    
      	
              4.

            	
              Term.
      Consultant shall complete the Services and complete and deliver to
      Company the Deliverables on or before the date set forth in the applicable
      Work Order, unless this Contract is terminated earlier pursuant to Section
      16. Notwithstanding the foregoing, Company may suspend or extend time for
      Consultant's performance at any time, and from time-to-tlme, upon two (2)
      days prior written notice. Thereafter, Consultant shall resume performance
      as directed by Company. In the event of such suspension or extension,
      Consultant shall be entitled to reimbursement for additional costs
      reasonably and necessarily incurred by Consultant in effecting such
      suspension or extension period, to the extent that such additional costs
      are actually incurred, if claimed within thirty (30) days an,er resumption
      of performance or early termination of the
  Contract.

            

    

     

    
      	
               
      5.

            	
              Compensation. Company shall pay
      Consultant for the Services and Deliverables to be performed and delivered
      in connection with the work as described and identified in the applicable
      Wurk Order. This amount includes all royalties or other charges for
      patents, copyrights, trademarks, trade secrets used by Consultant in the
      performance of this Contract; all allowances for wages, payroll burden
      (i.e., insurance, payroll taxes, vacations, fringe benefits, etc.),
      overhead, general and administrative expenses, local telephone calls,
      postage, insurance, profits, fees; all social security, employment
      withholdings and taxes, unemployment, gross receipts, income, sales, use,
      occupation or cither taxes; and all costs and expenses of whatever kind,
      except as otherwise expressly set forth in the applicable Work
      Order.

            

    

     

    
      	
              6.  

            	
              Billing
      and payment.
      Consultant shall bill Company monthly for work performed during the
      month. Consultant shall submit to the Company monthly, on the form
      provided by Company, a written requisition for payment showing the
      aggregate value of the Work performed and completed through the iast
      billing date, from which there shall be deducted retainage, subject to
      approval by the Company of the amount of the evaluation of the Work stated
      in each requisition, IT IS
      IMPFRATIVE THAT THE COMPANY RECEIVE AN ORIGINAL, HARD COPY INVOICE
      MONTHLY. Consultant's
      invoices shall set forth in reasonable detail the work performed
      and amounts due. In addition, Consultant shall submit to Company with its
      invoice, copies of receipts for each
      Reimbursable Expense (as defined in the applicable Work Order) over $25.
      Consultant shall provide copies of any other receipts for
      expenses for which Consultant has requested reimbursement promptly
      upon Company's request. Consultant shall submit invoices and copies of
      receipts to the address set forth in the applicable Work Order. Company
      shall pay Consultant the undisputed amount of such invoices within
      forty-five (46) days after Company's receipt and approval of the invoice.
      Amounts not paid within forty-five (45) days shall accrue interest at a
      rate of one percent (1%)
      per month. No payment to Subcontractor will be authorized until
      Chevron ES receives a Payment and Performance Bond (if required), a
      current Certificate of Insurance, and any Hen waivers and releases (as
      required).

            

    

     

    
      	
              7.  

            	
              Notice.
      All notices in connection with this Contract shall be in writing,
      addressed to the addresses set forth below, and shall refer to Company's
      Contract Number and the number of the applicable Work Order. All notices
      or other communications so addressed shall be effective when received.
      Either party may change its address for notices
      by providing written notice to the
other.

            

    

     

    
      	
              To:
      Company (Project Manager)

              Chevron
      tnergy solutions Company, 

              a
      division of Chevron U.S.A. Inc.

               

              As
      Specified on Work Order

            	 	
              With
      copy to:

              Chevron
      Energy Solutions Company, 

              a
      division of Chevron U.S.A. Inc. 

              345
      California Street, 18th
      Floor 

              San
      Francisco, CA 94104 

              Attention:
      Manager, Contract Services

            	 	
              To
Consultant:

              Envision
      Solar International, Inc,

              4225
      Executive Square Suite 1000 

              La
      Jolla, CA 92037 

              Attn:
      Pamela Steven

               

              Tel
      No: 858.768.5151 

              Fax
      No: 858.799,4592

            

    

     

    
      	
              8. 

            	
              Access
      to Premises and Equipment. Company will
      arrange for access to premises, facilities, equipment, personnel, and data
      to the extent reasonably required in order for Consultant to perform the
      Services and provide the Deliverables. Such access shall be provided
      during business hours as directed by Company, unless the parties agree on
      other arrangements. Consultant agrees to comply, and to cause its
      employees, subcontractors, consultants and
      any other representatives to comply, with such arrangements,
      including without limitation, any rules pertaining to use of designated
      access areas, logging in and out of the premises, or securing permits or
      identification required to enter the premises. Consultant shall not enter
      any areas outside of those for which access is
      provided, without prior written permission from
      Company.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              9. 

            	
              Independent
      Contractor. In performing this Contract, Consultant agrees that it
      is acting as an independent contractor and not as an employee or agent of
      Company. As an independent contractor. Consultant shall
      not be
      eligible for any benefits Company may provide
      its employees. All persons, if any, hired by Consultant
      shall be employees of Consultant and shall not be construed as employees
      or agents of Company in any respect. Consultant shall be responsible for
      all taxes, insurance and other costs and payments legally required to be
      withheld or provided in connection with Consultant's performance of this
      Contract, including without limitation, all withholding taxes, worker's
      compensation insurance, and similar
costs.

            

    

     

    
      	
              10.

            	
              Conflict Of
      Interest. Conflicts of interest relating to this Agreement are
      strictly prohibited. Except as otherwise expressly provided herein,
      no Party nor any director, employee or
      agent of
      any Party shall give to or receive from any director, employee or
      agent of any other Party any gift, entertainment or other favor of
      significant value, or any commission, fee or rebate in connection with
      this Agreement. Likewise, no Party nor any director, employee or agent
      of
      any Party, shall without prior notification thereof to all Parties
      enter into any business relationship with any director, employee or agent
      of another Party or of any Affiliate of another Party, unless such person
      is acting for and on behalf of the other Party or any such Affiliate. A
      Party shall promptly notify the other Parties of any violation of this
      section and any consideration received as a result of such violation shall
      be paid over or credited to the Party against whom it was
      charged. Any representative of any Party, authorized by
      that Party, may audit the records of the other Parties related to
      this Agreement, including the expense records of the Party's employees
      involved in this Agreement, upon reasonable notice and during regular
      business hours, for the sole purpose of determining whether there has been
      compliance with this
      Section.

            

    

     

    
      	
              11.  

            	
              Non-Compete.
      During the term of this Contract, Consultant shall not accept any
      employment or engage in any work for anyone other than the Company to
      perform work for or on the specified facilities for which the Company has
      hired the Consultant to provide consulting services as described
      herein.

            

    

     

    
      	
              12.  

            	
              Performance.
      Consultant represents to Company that Consultant possesses the degree ul"
      skill and knowledge necessary to perform its obligations under this
      Contract, and that the Services and Deliverables provided by Consultant
      under this Contract shall be performed with the degree of skill and care
      that is required by current, good and sound professional procedures and
      practices, and in conformance with generally accepted professional
      standards prevailing at the time the work is performed.
      If
      Consultant's performance of this Contract requires any permits,
      licenses, or performance bonds, Consultant has obtained alt such permits,
      licenses, and performance bonds, and shall maintain them in full force and
      effect throughout the term of this Contract. Consultant shall provide
      copies of all such permits, licenses, and performance bunds to Company,
      upon request. Consultant shall comply with all applicable federal, state,
      and local laws, codes, and regulations in performing this Contract
      Consultant will, at its own expense, promptly and properly perform, at the
      written request of Company, all corrective services necessary to conform
      the Services and Deliverables to the foregoing representations. Consultant
      understands and acknowledges that Company will rely upon the
      competence and completeness of Consultant's
      Services in fulfilling Company's contractual commitments to third
      parties.

            

    

     

    
      	
              13.  

            	
              indemnification.
      Consultant shall indemnify Company, its directors, officers, agents, and
      employees and Company's customers' directors, officers, agents and
      employees against (i) Consultant's willful misconduct and /or negligent
      acts or omissions in Consultant's performance of this Contract; (ii)
      Consultant's breach of its covenants set forth in this Contract, including
      without limitation, its failure to comply with all applicable laws
      governing performance of the Services or to withhold taxes from its
      compensation as required by law; (iii) for any and all taxes assessed
      against Company that are included within the amounts paid to Consultant or
      otherwise are amounts Consultant is responsible for under this Contract;
      (iv) for any claim of infringement of any intellectual property rights
      arising out of or in connection with Consultant's performance or this
      contract; (v) for all I033,
      damage, expense and liability resulting from injury to or death of
      any person or injury to property arising out of or in connection with
      Consultant's negligent performance of this Contract. Consultant shall, on
      Company's request, defend any action, claim, or suit asserting a claim
      covered by this indemnity. Consultant shall pay all costs that may be incurred by Company
      in enforcing this indemnity, including reasonable attorneys'
      fees.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              14. 

            	
              Confidential
      Information.
      All oral or written records, reports, computer programs, written
      procedures, materials, documents, data or information In whatever form
      Company or its affiliates, agents or customers may provide Consultant in
      connection with this Contract (the "Information") and all Deliverables
      shall be considered the confidential and proprietary information of
      Company. Consultant agrees not to disclose, and to cause its employees,
      subcontractors and any other representatives not to disclose, any of the
      Information or Deliverables to any third party or use any such Information
      or Deliverables for any purpose other than the performance of this
      Contract, without the prior written consent of Company. Without limiting
      the foregoing, (i) if Consultant knew the same information or deliverables
      before Company disclosed it or caused it to be disclosed to Consultant or
      before Consultant created it for this Contract; (ii) if Consultant obtains
      the same information or deliverable from a third party who did not receive
      it directly or indirectly from Company or its affiliates, agents or
      customers; or (iii) if such Information or Deliverable is, at the time of
      disclosure by Consultant, in the public domain through no act or omission
      of Consultant, Consultant may use or disclose such information or
      deliverable as permitted by Consultant's other obligations. The
      obligations imposed by this Section shall survive termination of this
      Contract All Information and Deliverables shall be returned to Company at
      the earlier of Company's request or termination or completion of this
      Contract. As damages may not be an adequate remedy for Consultant's breach
      of this Section, Consultant agrees that Company also shall be entitled to
      the remedies of injunctive relief and specific performance for any breach
      by Consultant of this Section or Section
15.

            

    

     

    
      	
              15.

            	
              Ownership.
      Company shall own all Information and Deliverables and all rights therein,
      including without limitation, all patent, copyright, trademark, service
      mark, trade secret or other intellectual property rights therein.
      Consultant shaJJ obtain and/or retain no right, title or interest in or to
      the Information and/or the Deliverables, including without limitation, any
      patent, copyright, trademark, service mark, trade secret or other
      intellectual property rights therein, and hereby assigns and transfers to
      Company any such rights Consultant may have in such Information and
      Deliverables-Consultant agrees that any copyrightable Deliverables are a
      work for hire. Consultant further agrees to execute, deliver, and perform
      all documents, acts, or things that may be necessary to assign or transfer
      to Company the rights granted hereby. Notice of copyright ownership of
      Company shall be placed by Consultant on all Deliverables in a manner and
      location as to give reasonable notice of the claim of copyright. To
      Consultant's actual knowledge, the Services and the Deliverables do not
      infringe on the ownership or intellectual property rights of any third
      party. Application for copyright and/or patent registration shall be the
      responsibility of Company. Consultant shall deliver such Information and
      Deliverables free and clear of all liens, claims, and encumbrances of any
      kind. The obligations imposed by this Section shall survive termination of
      this Contract.

            

    

     

    
      	
              16. 

            	
              Termination. Company may terminate
      this Contract or any Work Order hereto at any time for any reason by
      providing two (2) days prior written notice to Consultant, such
      termination to be effective at the end of the two (2) day notice period In
      the event of such termination. Company shall pay Consultant for Services
      and Deliverables satisfactorily performed and for all Reimbursable
      Expenses, if any, incurred by Consultant on or before the effective date of
      termination. Upon receipt of notice of termination from Company,
      Consultant shall thereafter seek to minimize further charges under this
      Contract or the
      applicable Work Order, whichever has
      been terminated. Unless earlier terminated, each Work Order
      shall terminate effective as of the date set forth thereon, subject to any
      extensions pursuant to Section 4.

            

    

     

    
      	
              17.  

            	
              Access
      to Work and Records,
      Company shall have, during the term of the Contract and for two years
      thereafter, access at all reasonable times to all of the Consultant's and
      Consultant's subcontractors" personnel, accounts and records
      or all description pertaining to the Contract, including but not
      limited to computer files, to verify or review the quantity, quality, and
      progress of the Services, reimbursable costs, amounts claimed by the
      Consultant, estimates of cost for fixed rates including those applicable
      to proposed changes, and for any other reasonable
  purposes.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              18.  

            	
              Insurance.
      Consultant shall maintain the following insurance coverage. An insurance
      certificate (or copy of insurance policy) and a completed Federal Form W-9
      must be provided to the Company at the time of execution of this Contract
      and must be in effect during all periods of subsequent Work Orders.
      Consultant is also responsible for Its subcontractors maintaining
      sufficient limits of the same insurance
  coverage.

            

    

     

    a)      Workers'
Compensation and Employers' Liability.

     

    
      	
               
      

            	
              (i)

            	
              Workers'
      Compensation insurance or self-insurance indicating compliance with any
      applicable
      labor codes, acts, laws or statutes, state or federal, where Consultant
      performs
      work.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Employers'
      Liability insurance shall not be less than 31,000,000 for injury or death
      each accident.

            

    

     

    b)      Commercial General
Liability.

     

    
      	
               
      

            	
              (i)

            	
              Coverage
      shall be at least as broad as the Insurance Services Office (ISO)
      Commercial General
      Liability Coverage "occurrence" form, with no coverage
      deletions,

            

    

    
      	
               
      

            	
               

            

    

    
      	
               
      

            	
              (ii)

            	
              The
      limit shall not be less than $1,000,000 each occurrence for bodily injury,
      property damage
      and personal injury. If coverage is subject to a general aggregate limit,
      this  aggregate
      limit shall be twice the occurrence
  limit.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Coverage
      shall: a) by "Additional Insured" endorsement add as
      insureds Company, its directors, officers, agents and employees
      with respect to liability arising out of work performed by or for the
      Consultant; and b) be endorsed to specify that the Consultant's insurance
      is primary and that any insurance or self-insurance maintained by Company
      shall not contribute with it.

            

    

     

    c)      Business
Auto.

     

    
      	
               
      

            	
              (i)

            	
              Coverage
      shall be at least as broad as the Insurance Services Office (ISO) Business
      Auto
      Coverage form covering Automobile Liability, codes 7
      and O, for hired and non- owned
      autos.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              The
      limit shall not be less than $1,000,000 each accident for bodily injury
      and property damage.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Notwithstanding
      the foregoing, Consultant indemnifies Company from all loss, claims, costs,
      and liabilities, resulting from or arising out of Consultant's use of any
      automobile in connection
      with the performance of this
  Contract.

            

    

     

    d)      Professional
Liability Insurance.

     

    
      	
               
      

            	
              (i)

            	
              Errors
      and Omissions Liability insurance appropriate to the Consultant's
      profession. Coverage
      shall be for a professional error, act, or omission arising out of the
      scope of services
      shown in the
Contract.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              The
      limit shall not be less than $1,000,000 for each claim. If coverage is
      subject to an aggregate,
      this anfjrGgate limit shall be twice each claim
    limit.

            

    

     

    e)      Additional Insurance
Provisions.

     

    
      	
               
      

            	
              (i)

            	
              Simultaneous
      with Consultant's execution of this Contract, Consultant shall furnish
      Company
      with certificates of insurance and endorsements of all required insurance
      for  Consultant.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              The
      documentation shall state that coverage shall not be cancelled except
      after thirty (30) days
      prior written notice has been given to
  Company.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              
                The
      documentation must be signed by 9
      person authorized by that insurer to bind coverage
      on its behalf and shall be submitted to: Chevron Energy Solutions Company,
      a division
      of Chevron U.S.A. Inc., 345 California Street, 18th
      Floor, San Francisco. CA  94104,
      Attention; Contract
    Administrator.

              

            

    

     

    
      	
               
      

            	
              (iv)

            	
              
                Company
      may inspect the original policies or require complete certified copies, at
      any time.

              

            

    

     

    
      	
               
      

            	
              (v)

            	
              
                Upon request, Consultant shall
      furnish Company the same evidence of insurance for the subcontractors
      as Company requires of
    Consultant,

              

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
              19.

            	
              Limitation of
      Liability. NOTWITHSTANOtNG ANYTHING
      CONTAINED IN THIS CONTRACT TO THE CONTRARY, COMPANY SHALL NOT BE LIABLE TO
      CONSULTANT FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR PUNITIVE DAMAGES ARISING OUT
      OF THE
      PERFORMANCE OF THIS CONTRACT, IRRESPECTIVE OF EITHER PARTY'S FAULT,
      NEGLIGENCE (IN WHOLE OR PART), OR STRICT
  LIABILITY.

            

    

     

    
      	
              20.  

            	
              Precautions
      and Protection to Property.
      Consultant shall plan and perform all Services, including without
      limitation, any
      Services to be performed on the premises of Company, its customers,
      or other third parties, so as to safeguard persons and property from
      injury, and to assure compliance with all reasonable and safe work
      practices, and federal, state, and local laws, rules and regulations,
      including without limitation, those applicable to work in areas adjacent
      to electrically charged racililies. Company may require, at Company's
      expense, the provision of any additional safeguards not in use but
      considered necessary or prudent, in Company's reasonable judgment. As part
      of these efforts, Consultant will assure that all of its employees,
      subcontractors and any other representatives that perform any Services on
      the premises of Company, its customers or other third parties refrain from
      the use, abuse, possession, selling or purchasing of illegal drugs or
      controlled substances, as defined under applicable federal or state law,
      and from the use at any time (including without limitation at meals) of
      alcohol, prescription drugs, or any other substance that could impair the
      ability to perform the Services in accordance with this Contract or to
      maintain a safe work place. Where reasonable cause exists to believe the
      foregoing provision has been violated, Consultant shall notify Company and
      take all appropriate steps to determine the existence of and eliminate any
      violation.

            

    

     

    
      	
              21.  

            	
              Dispute
      Resolution, in
      the event of a dispute, controversy, or claim arising out of or relating
      to this Contract, the
      Parties shall confer and attempt to resolve such matter informally.
      If such dispute or claim cannot be resolved in this manner, then the
      dispute or claim shall be referred first to
      the Parties' executive officers for their review and resolution. If
      the dispute or claim still cannot be resolved by such officers, then the
      matter shall be arbitrated and either Party may file a written demand for
      arbitration with Judicial Arbitration & Mediation Services ("JAMS")
      and shall send a copy of such demand to the
      other Party. The arbitration shall be conducted pursuant to the
      appropriate JAMS Arbitration Rules in effect at the time the
      arbitration is commenced. For amounts in excess of 5250,000, JAMS
      Comprehensive Arbitration Rules and Procedures shall apply. For lesser
      disputed amounts, JAMS Streamlined Arbitration Rules and Procedures shall
      apply. The award rendered by the arbitrator shall be final and binding on
      the Parties and shall be deemed enforceable in any court having
      jurisdiction thereof and of the Parties. The arbitration shall be heard by
      one arbitrator, who shall have experience in the general subject matter Lo
      which the dispute relates- The arbitration shall take place at the JAMS
      office geographically closest to the site where the Work or Services has
      been performed.

               

              Fee
      Shifting: If either party ("Party") becomes involved in arbitration or
      litigation ("Proceeding) arising from or relating to this Contract or the
      performance of it, the court or arbitrator(s) in such Proceeding, or in a
      separate proceeding, shall award to the prevailing Party or Parties alt
      reasonable attorney fees, expert witness fees, and all other costs and
      expenses incurred in, arising from, or relating to such
      Proceeding.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              
                22.

              

            	
              
                Hazardous_Materials. Consultant's_Duties Regarding
      Management of Hazardous Materials: consultant shall oe
      responsible for complying with all Applicable Laws with respect to the
      removal and
      proper disposal of all Hazardous Materials brought onto or generated by
      Consultant or by any of

                 

                Its
      Subcontractors in the course of performing
      the Work. Consultant shall defend, indemnify and hold the Company
      and Customer harmless from and against any and all losses, damages,
      expenses, fees, claims, costs and liabilities (including, but not limited
      to, attorneys' fees and costs of litigation) arising out of or in any
      manner related to the release or threatened released ot any Hazardous
      Materials brought onto or generated by Consultant during the course of
      performing the Work. It is expressly understood that this responsibility
      includes protecting the Company and Customer from any clean-up
      responsibility imposed on the Company or Customer under Applicable
      Laws.

                 

                Consultant
      shall not be responsible for any pre-existing Hazardous Materials at the
      Site. Consultant shall provide written notice to the company immediately
      upon the discovery of any pre-existing Hazardous Substances. Except in
      case of emergency, Consultant, or any of its subcontractors, shall not
      disturb, disrupt, remove," alter, dislodge, or otherwise handle any
      pre-existing Hazardous Substances at the Site without the prior written
      consent of the Company. As appropriate, the company will issue a Work
      Order to Consultant for the removal of any pre-existing Hazardous
      Substances from the Site. Consultant shall defend, indemnify and hold the
      company and Customer harmless from and against any and all losses,
      damages, expenses, fees, claims, costs and liabilities (including, but not
      limited to, attorneys' fees and costs of litigation) arising directly out
      of Consultant disturbing or causing a release of any Hazardous Substances
      at the Site.

                 

                UNDER
      NO CIRCUMSTANCES SHALL THE COMPANY BE LIABLE FOR ANY INJURY TO CONSULTANT
      WHICH IS THE RESULT OF CONSULTANT'S EXPOSURE TO HAZARDOUS
      SUBSTANCES.

                 

                The
      term "Hazardous Materials" as used herein means any material that, because
      of its quantity, concentration, or physical or chemical characteristics,
      poses a significant present or potential hazard to human health and safety
      or to the environment if released into the workplace or the
      environment.

              

            

    

     

    
      	
              23.  

            	
              Chevron
      .Policies. Consultant and agency
      personnel are expected to comply with applicable Chevron and
      Chevron ES Policies (such as the Contract and Travel Policies) and
      Compliance Practices and Procedures (such as non-use of drugs,
      anti-harassment, and cell phone usage guidelines). Consultant's supervisor
      shall be responsible for informing the Consultant of applicable policies
      and ensuring that they are
followed.

            

    

     

    
      	
              24.  

            	
              Miscellaneous, (a) Choice of Laws.
      THIS
      CONTRACT SHALL BE GOVERNED BY THE LAW OF THE STATE OF CALIFORNIA,
      EXCLUDING ANY CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE APPLICATION
      OF THE LAW OF ANOTHER JURISDICTION, (b) Waiver. The
      waiver by either party of any provision of this Contract shall not be
      deemed to be a waiver of the entire Contract, nor a continuing waiver of
      the same provision, (c) Severability.
      If any provision of this Contract is determined to be unenforceable, such
      unenforceable provision shall be deemed deleted from this Contract and
      this Contract shall be enforced without such provision, (d) Prior Work.
      Services performed by Consultant pursuant to Company's authorization, but
      before the execution of this Contract, shall be considered as having been
      performed subject to the provisions of this Contract (e) Publicity.
      Consultant shall not release any Information or Deliverables or any other
      information relating to this Contract, including without limitation, its
      existence, without the prior written approval of Company, and without
      giving Company the opportunity to review and comment upon any requested
      release, unless the disclosure is otherwise required by law. (f) Entire
      Agreement- This Contract, including any applicable Work Order
      attached hereto, contains the entire agreement and understanding between
      the parties as to the subject matter of the Contract and supersedes all
      prior or contemporaneous agreements, commitments, representations,
      writings, and discussions between Company and Consultant, whether oral or
      written, (g) Public
      Testimony. If requested by Company, Consultant shall provide
      testimony before the California Public Utilities Commission or any other
      public agency to substantiate the Deliverables, at additional compensation
      to the Consultant, (h) Amendment. This
      Contract may not be amended except by a writing executed by both parties
      hereto. No oral amendment shall be enforceable, even if supported by new
      consideration, (i) Conflicting
      Terms. In the event of any conflict between the terms of this
      Contract and the terms of a Work Order, the terms of the Work Order shall
      control, (j) Energy Policy
      Act. Consultant agrees that for the Work on the
      Project hereunder, Chevron ES shall be the "designer* as that term is
      identified in the Energy Policy
      Act of 2005, and Chevron ES shall have the exclusive right to report to
      any federal, state, or local agency, authority or other party, including
      without limitation under Section 179(b) of the Energy Policy Act of 2005,
      any tax benefit associated with the
Work.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              25.  

            	
              Communication.
      Unless otherwise provided in writing, Consultant communications by and
      with the Owner, Architect, Contractors, and other Consultants and
      suppliers of the Company, regardless of tier, shall be through the
      Company,

            

    

     

    
      	
              26.  

            	
              Data_Privacy. Consultant will
      comply with all reasonable requests of Company with respect to protecting
      personal data of Company employees, customers, and suppliers it receives
      in connection with its performance of this Contract, including but not
      limited to following Company's instructions in connection with processing
      such personal data; implementing adequate security measures to protect
      such personal data; not disclosing such pereonal data to any
      third party without Company's written permission; and complying with all
      applicable data privacy laws.

            

    

     

    
      	
              27.  

            	
              Successors and
      Assigns. This Agreement may not be assigned by either party in
      whole or in part without the prior written consent of the other party,
      which consent may not be unreasonably withheld or delayed; provided
      however, that Company may assign this Agreement and all related agreements
      without the consent of Consultant (i) to an affiliate; (ii) to an entity
      that is controlled by, controls, or is under common control with Company;
      or (iii) pursuant to a merger, consolidation, transfer of substantially
      all its assets, or by operation of law; and provided further that Company
      may assign its rights, but not its obligations, under this Agreement and
      ail related agreements without the consent of Consultant to (x) a lender
      providing financing to Company, or (y) a special purpose entity that is an
      affiliate of or is controlled by such lender. This Agreement will be
      binding on, enforceable by, and inure to the benefit of, the parties
      hereto and their respective successors and permitted assigns. Any
      assignment made in contravention of this clause shall be void and
      unenforceable.

            

    

    

    

    IN
WITNESS WHEREOF, the duly authorized representative of each of the parties
hereto has executed this Contract in duplicate originals to be effective as of
the date and year first written above.

    

    
      
        	
                ENVISION
      SOLAR INTERNATIONAL, INC.

              	 
      	
                CHEVRON
      ENERGY SOLUTIONS COMPANY

              
	 
      	 
      	
                A
      division of Chevron U.S.A. Inc.

              
	 
      	 
      	 
      
	
                By:  /s/
      Pamela Stevens

              	 
      	
                By:  William
      Brookenborough

              
	
                Print

                Name: 
      Pamela Stevens

              	 
      	
                Print

                Name: 
      William Brookenborough

              
	
                Its:
      Chief Operating Officer

              	 
      	
                General
      manager - Operationsf8k0210ex10xviii_envision.htm

    Exhibit 10.18

     

    
      AMENDMENT
AGREEMENT

      

      This
Amendment Agreement (this “Agreement”),
dated as of October 30, 2009, is entered into by and among Envision Solar
International, Inc., a California corporation (“Company”),
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., a Cayman Islands corporation (the “Investor”),
and Gemini Strategies, LLC (“Collateral
Agent”).  The Company and the Guarantors are sometimes referred
to herein individually as an “Envision
Entity” and collectively as the “Envision
Entities”. Capitalized terms used herein, but not otherwise defined,
shall have the meanings ascribed to them in that certain Securities Purchase
Agreement, dated as of November 12, 2008, between the Company and the Investor
(the “Purchase
Agreement”).

      

      R E C I T A L S:

      

      WHEREAS, the Company and the Investor
are party to the Purchase Agreement, pursuant to which the Company issued to the
Investor a Secured Bridge Note, dated November 12, 2008, in the principal amount
of $591,770.83 (the “Note”);

      

      WHEREAS, the Guarantors have entered
into that certain Subsidiary Guarantee, dated as of November 12, 2008 (the
“Guarantee”),
pursuant to which each Guarantor has guaranteed the satisfaction of all the
obligations of the Company under the Transaction Documents;

      

      WHEREAS,
the Company and the Guarantors have entered into that certain Security Agreement
and that certain Intellectual Property Security Agreement, each dated as of
November 12, 2008 (collectively, the “Security
Agreements”), pursuant to which the Company and the Guarantors have each
granted a security interest in its assets and properties to the Investor and the
Collateral Agent to secure the satisfaction of all the obligations of the
Envision Entities under the Transaction Documents;

      

      WHEREAS,
the Company defaulted on the Note, and the Envision Entities and the Investor
entered into that certain Forbearance Agreement on or about April 11, 2009,
pursuant to which the Investor agreed to temporarily forbear from exercising its
rights and remedies under the Transaction Documents;

      

       WHEREAS,
the Company wishes to become subject to the reporting requirements of the
Exchange Act and have its Common Stock listed or quoted on the Over-The-Counter
Bulletin Board (“Bulletin
Board”) and requires approximately $125,000 to effect such registration
and listing; and

      

      WHEREAS,
the parties have agreed (a) to amend and restate the Note in the form of Exhibit
A attached hereto, pursuant to which, among other things, the Maturity Date of
the Note shall be extended and the Note shall be convertible into shares of
common stock of the Company, no par value per share (“Common
Stock”), in accordance with the terms thereof, and (b) the Investor shall
loan an additional $125,000 to the Company in consideration for the issuance of
a new Secured Bridge Note in the form of Exhibit A attached hereto (“New Note”
and together with the Note, the “Notes”),
each on the terms and conditions set forth herein;

       

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      
 

      A G R E E M E N
T:

      

      NOW, THEREFORE, in consideration of the
foregoing and subject to the terms and conditions herein contained, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

      

      1. ACKNOWLEDGMENTS.

      

      1.1. Acknowledgment of
Obligations. The Investor and the Envision Entities hereby acknowledge,
confirm and agree that as of the date hereof, the Company is indebted to
Investor in respect of the Note in the amount of $657,194.38
(the “Note
Amount”) (consisting of $591,770.83 principal amount plus $65,423.55
of accrued interest at the default rate under the Note between the Maturity Date
under the Note (April 12, 2009) and the date hereof.  The Note Amount
is unconditionally owing by Envision to the Investor, without offset, defense or
counterclaim of any kind, nature or description whatsoever.

      

      1.2. Acknowledgment of Security
Interests.  The Envision Entities hereby acknowledge, confirm
and agree that the Investor has and shall continue to have valid, enforceable
and perfected Liens upon and security interests in the assets and properties of
the Envision Entities heretofore granted to the Investor pursuant to, and having
first priority as set forth in, the Security Agreements, securing all
obligations under the Transaction Documents, including without limitation the
Note (as amended and restated hereby) and the New Note.  The Envision
Entities hereby acknowledge, confirm and agree that the Investor has and shall
continue to have valid and enforceable assignments of the patents, trademarks
and other intellectual property and other assets assigned by the Envision
Entities, including without limitation those listed on the annexes to the
Security Agreements.

      

      2.           AMENDMENT
AND RESTATEMENT OF NOTE. The Note shall
be amended and restated in the form attached hereto as Exhibit A
(the “Amended and
Restated Note”), which shall provide, among other things, that (i) the
original principal face amount of the Note is $657,194.38, (ii) the Maturity
Date shall be extended until December 31, 2010, and (iii) the Note is
convertible into shares of Common Stock as set forth therein.  Such
amended and restated Note shall be executed by the Company and delivered to the
Investor in exchange for the surrender of the original issued Note within five
(5) Business Days following the date hereof.

      

      3.           NEW
NOTE.  The Investor has or shall prior to the close of business
on the date hereof advance $125,000 in loan proceeds to the Company, and the
Company shall execute, deliver and issue to the Investor the New Note within
five (5) Business Days following the date hereof to evidence the Company’s
obligations pursuant to such loan.  The Company agrees that
contemporaneously herewith it shall enter into an escrow agreement with the
Investor’s counsel, as escrow agent (“Escrow
Agent”), in the form of Exhibit C
attached hereto (“Escrow
Agreement”), pursuant to which all such funds advanced under the New Note
shall be deposited into an escrow account for the benefit of the Company (“Escrow
Account”) and distributed only in accordance with the terms of such
Escrow

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      Agreement
and Section 4.9 below.  To effect a disbursement under the Escrow
Agreement, the Company shall deliver written notice (which may be by email)
(“Disbursement
Notice”) to the Investor specifying (a) the amount of such disbursement,
(b) the name, address and wire transfer instructions of the Person to which such
disbursement is to be made on behalf of the Company, (c) a description of the
use of such proceeds, together with an explanation as to why such use of
proceeds is included within the parameters set forth in Section 4.9 below, and
(d) such other information as may be reasonably requested by the
Investor.  The Person to which such disbursement shall be made (i)
shall be the Person rendering services to the Company in connection with Section
4.1 or 4.9 and (ii) shall not be the Company or any direct or indirect Affiliate
of the Company.  Promptly following receipt of any Disbursement
Notice, if the Investor approves of such disbursement in accordance with Section
4.9 below, the Investor shall instruct the Escrow Agent to disburse the amount
set forth in such Distribution Notice to such Person providing services set
forth therein.  Upon the Company completing all expenses required in
connection with satisfying Section 4.1 below, it shall promptly notify the
Investor, and if any amount remains in the Escrow Account at such time, such
amount shall either be (1) disbursed to the Company, or (2) paid to the Investor
as repayment under the New Note, as may be elected by the Investor in its sole
discretion.  The Investor shall instruct the Escrow Agent to disburse
such remaining amount in accordance with such election.  If any amount
remains in the Escrow Account (x) on December 31, 2010 or (y) at any time
following any acceleration of the New Note by the Holder pursuant to Section
8(b) thereof, such amount shall be paid to the Investor as repayment under the
New Note, and the Investor shall so instruct the Escrow Agent to disburse such
remaining amount.  The term “Note” under the Security Documents and
Subsidiary Guaranty is hereby amended to also include the New Note, and the
Company’s and its Subsidiaries’ obligations under the New Note, Subsidiary
Guaranty and other Transaction Documents shall be secured by all the assets of
the Company and its Subsidiaries as set forth in the Security
Documents.

      

      4.           OTHER
AGREEMENTS.

      

      4.1           Exchange Act Reporting
Requirements; Reverse Split.  The Company shall cause the
Company to be subject to the reporting requirements of the Exchange Act and
listed or quoted for trading on the Bulletin Board on or prior to April 1, 2010
and shall promptly take any and all actions necessary and appropriate to
effectuate such Exchange Act registration and Bulletin Board listing, including
without limitation having the requisite independent audit of its financial
statements, filing a Form 10 with the Securities and Exchange Commission (“Commission”)
(and promptly amending such Form 10 in response to Commission comments), and
securing a market maker to file a listing application with the Bulletin
Board.  At all times after such Form 10 becomes effective, the Company
shall have filed with the Commission all reports required to be filed by it
under the Exchange Act by issuers that are subject to the reporting requirements
of the Exchange Act (whether or not the Company is subject to the reporting
requirements of the Exchange Act), and the Company shall thereafter continue to
timely file (or obtain extensions in respect thereof and file within the
applicable grace period) all such reports with the Commission. Prior to the
filing of such Form 10, the Company shall effect a forward stock split of the
Company’s Common Stock (“Split”)
whereby each share of Common Stock outstanding is subdivided into between 20 and
60 shares of Common Stock (such figure, the “Split
Factor”), provided that the Split Factor shall be subject to approval by
the Investor.  The Company 

       

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      shall not
engage in a Reverse Merger Transaction without the prior written consent of the
Investor (which consent may be withheld in its sole discretion and which may be
conditioned upon any terms imposed by the Investor).  The Company
shall not issue any equity securities or Common Stock Equivalents (as defined in
the Notes) without the prior written consent of the Investor, except for (i)
Common Stock issued or the issuance or grants of options to purchase Common
Stock pursuant to the Company’s stock option plans and employee stock purchase
plans outstanding as they exist on the date of this Agreement, (ii) Common Stock
issued to any of the Company’s creditors in connection with the satisfaction of
any of the Company’s Indebtedness to such creditors and (iii) equity securities
of the Company issued to investors in connection with a private placement or
series of private placements that result in aggregate proceeds to the Company of
up to $10 million, provided that (a) in each
case the Company shall notify the Investor in writing prior such issuance, and
(b) at the election of the Investor 25% of the proceeds of any such private
placement shall be paid directly to the Investor in repayment of the Amended and
Restated Note and New Note.  The Company covenants and agrees that,
after such Form 10 becomes effective, neither it nor any other Person acting on
its behalf will provide the Investor or its agents or counsel with any
information that the Company believes constitutes material non-public
information, unless prior thereto the Investor shall have executed a written
agreement regarding the confidentiality and use of such information (the Company
understands and confirms that the Investor shall be relying on such covenant in
effecting transactions in securities of the Company).  The Company
represents and warrants that it possesses, or believes it can obtain in a timely
manner, all documents and information necessary or appropriate for timely
complying with all terms contained in this paragraph, including without
limitation having the requisite financial statements prepared and audit
conducted.

      

      4.2           Reservation of Common
Stock.  At all times hereafter the Company shall cause to be
authorized and reserved for issuance to the Investor from its duly authorized
capital stock, for issuance upon conversion of the Notes, a number of shares of
Common Stock equal to 125% of the number of Conversion Shares (as defined in the
Notes) issuable upon the full conversion of the Notes (without regard to any
beneficial ownership limitation contained therein).

      

      4.3           References to Notes and
Transaction Documents.  All references in the Transaction
Documents and herein to (i) “Transaction Documents” shall be deemed to be
references to the Transaction Documents (as currently defined in the Purchase
Agreement and as amended by this Agreement), this Agreement, the Forbearance
Agreement, the Escrow Agreement, the New Note and the Lock-Up Agreements, and
(ii) “Note” or “Notes” shall be deemed to be references to collectively the
Note, as amended and restated hereby, and the New Note (together with any future
Notes issued to the Investor).

      

      4.4           Rule
144.  The Company acknowledges and agrees that, for purposes of
Rule 144 promulgated under the Securities Act, the holding period for the
Conversion Shares issuable upon conversion of, or otherwise pursuant to, the
Note and/or the New Note shall have commenced on November 12, 2008 (the date of
original issuance of the Note, for the Note) and October 30, 2009 (the date of
original issuance of the New Note, for the New Note).  Without
limiting the foregoing, if at any time it is determined that such holding period
does not relate back to such date, the Company will

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      promptly,
but no later than 30 days thereafter, cause the registration of all such
Conversion Shares under the Securities Act (without regard to any beneficial
ownership or issuance limitations contained in the Notes).  In
connection with any registration of Conversion Shares pursuant to this Section,
the Company and the Investor shall enter into a registration rights agreement
containing customary and reasonable provisions regarding the registration of
securities under the Securities Act.

      

      4.6           Disclosure.  The
Company and the Investors shall consult with each other in issuing any other
press releases with respect to the transactions contemplated hereby and other
press releases to be issued by the Company (subject to Section 4.1
above).

       

      4.7           Security
Continued.  The Envision Entities’ obligations under all the
Transaction Documents, including without limitation this Agreement and the
Notes, shall be secured by all the assets of the Envision Entities pursuant to
the Security Agreements as if this Agreement, the Note (as amended and restated
hereby) and the New Note were each in effect at the time of execution of such
Security Agreements and referenced therein.  The Company shall execute
such other agreements, documents and financing statements reasonably requested
by the Investor, which will be filed at the Company’s expense with the
applicable jurisdictions and authorities.

      

      4.8           No
Legends.  After the date on which the Conversion Shares may be
sold without registration pursuant to Rule 144, the Company shall issue
certificates without any legends or restrictions thereon evidencing any
Conversion Shares, and any certificates with legends previously imprinted shall
be replaced with certificates without any legends.

      

      4.9           Use of
Proceeds.  The Company shall use the $125,000 in loan proceeds
from the advance made by the Investor hereunder, as evidenced by the New Note,
solely in connection with expenses incurred by the Company in connection with
complying with Section 4.1 above, which shall include, without limitation, legal
and audit fees (including amounts payable to counsel in connection with amending
current agreements, converting liabilities into equity or subordinated notes and
adopting corporate governance measures consistent with being a publicly listed
company and amounts payable to unaffiliated third party experts in connection
with preparing the Company’s financial statements for an audit) and
disbursements for Commission filings and financial statements and transfer agent
fees and be subject to the prior written approval of the Investor, provided that
such expenses shall not include any overhead or costs of Company personnel or
stock option plan expenses and shall be substantially in accordance with
Schedule 4.9 attached.

      

      4.10           IR/PR.  Contemporaneously
with the filing of the Form 10 with the Commission, the Company shall retain
NetGain Financial, Inc. as a consultant/advisor for public relations and
investor relations for the Company for one year on terms mutually acceptable to
the Company and NetGain Financial, Inc.

      

      4.11           Forbearance
Shares.  The Company acknowledges and agrees that is has issued
10,000 shares of Common Stock pursuant to Section 3.1(f) of the Forbearance
Agreement in consideration for the forbearance set forth therein (“Forbearance
Shares”), but has failed to deliver a stock  certificate
evidencing such Forbearance Shares.  The Company shall deliver a stock
certificate evidencing such Forbearance Shares, with an issuance date of April
11, 2009, within five (5) Business Days following the date
hereof.  The Company represents, acknowledges and agrees that (a) such

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      Forbearance
Shares have been and were duly and validly issued, fully paid and nonassessable,
and free and clear of all Liens, (b) upon the Split such Forbearance Shares will
be converted into such number of shares as is equal to 10,000 shares multiplied
by the Split Factor, and (c) for purposes of Rule 144 promulgated under the
Securities Act, the holding period for the Forbearance Shares shall have
commenced on April 11, 2009 (the date of the Forbearance
Agreement).

      

      4.12           Lock Up
Agreements.  Within thirty (30) days from the date hereof, the
Company shall use its best efforts to cause each stockholder of the Company
categorized under “Founder Shares”, “Generating Assets Shareholders” and
“Nexcore Capital / FWG”, as indicated on Schedule 5.7 attached hereto, to
execute and deliver to the Investor a “lock-up agreement” in the form set forth
as Exhibit B attached hereto, irrevocably agreeing not to sell or otherwise
dispose of any shares of Common Stock until June 30, 2010.

      

      4.13           Public Company
Shares.  In substitution for any shares of Common Stock which
would have been issued to the Investor in a Reverse Merger Transaction pursuant
to Section 4.8 of the Purchase Agreement, promptly following the Split
contemplated hereby the Company shall issue to the Investor 0.3125% of the
fully-diluted number of outstanding shares of Common Stock of the Company
(assuming conversion and exercise of all outstanding options, warrants and
convertible securities and including the issuance of any shares of Common Stock
or Common Stock Equivalents to NetGain Financial, Inc. or any other investor
relations or public relations firm) prior to the date thereof.  All
shares of Common Stock issued pursuant to this paragraph shall be duly and
validly issued, fully paid and nonassessable, free and clear of all Liens
imposed by the Company.

      

      5.           REPRESENTATIONS
AND WARRANTIES OF THE ENVISION ENTITIES.

      

      Each of the Envision Entities hereby
jointly and severally represents and warrants to the Investor as of the date
hereof:

      

      5.1           Organization.  Such
Envision Entity is duly organized, validly existing and in good standing under
the laws of its organization.

       

                     
5.2           Authorization.  Such
Envision Entity has the requisite corporate power and authority to execute,
deliver and perform this Agreement and the other Transaction Documents to which
it is a party.  All corporate action on the part of such Envision
Entity and by its officers, directors and shareholders necessary for the
authorization, execution and delivery of, and the performance by such Envision
Entity of its obligations under this Agreement, the New Note and the other
Transaction Documents to which it is a party has been taken, and no further
consent or authorization of any other party is required.

      

      5.3           Enforceability.  This
Agreement, the New Note and the other Transaction Documents to which such
Envision Entity is a party constitute such Envision Entity’s valid and legally
binding obligation, enforceable in accordance with its terms, subject to (i)
applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or other similar laws of general application relating to or affecting
the enforcement of creditors’ rights generally and (ii) general principles of
equity.

       

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      
 

      5.4           No
Conflicts.  The execution, delivery and performance of this
Agreement and the other Transaction Documents to which such Envision Entity is a
party, and the consummation of the transactions contemplated hereby and thereby,
will not result in any violation of any provisions of any of such Envision
Entity’s organizational documents or in a default under any provision of any
instrument or contract to which such Envision Entity is a party or by which any
of its assets are bound, or in violation of any provision of any governmental
requirement applicable to such Envision Entity or be in conflict with or
constitute, with or without the passage of time and giving of notice, either a
default under any such provision, instrument or contract or the triggering of
any preemptive or anti-dilution rights (including without limitation pursuant to
any “reset” or similar provisions) or rights of first refusal or first
offer.

      

      5.5           Valid
Issuance.  The Note, as amended and restated hereby, has been
duly authorized and duly and validly issued, free and clear of any Liens imposed
by or through any of the Envision Entities.  The New Note has been
duly authorized and, when issued and delivered in accordance with the terms of
this Agreement, will be duly and validly issued, free and clear of any Liens
imposed by or through any of the Envision Entities.

      

      5.6           Bring-Down of
Representations and Covenants.  The representations and
warranties of the Company contained in the Purchase Agreement are in all
material respects true and complete on and as of the date hereof as though made
on and as of the date hereof.  Each Envision Entity has in all
material respects complied with or performed all terms, covenants and conditions
to be complied with or performed by such party under the Transaction Documents
(except for repayment at the Maturity Date of the Note and the timely
deliverance of the Forbearance Shares).

      

      5.7           Capitalization and
Indebtedness.  The current capitalization of the Company is as
set forth on Schedule 5.7 attached hereto, which includes, without limitation
(a) a list of all holders of Common Stock by name and number of shares held, (b)
a list of all holders of warrants and options by name and number of warrants and
options held, and (c) a list of holders of all other Common Stock Equivalents by
name and number and type of security held.  Other than the Notes, the
Company does not have any Indebtedness except as set forth on Schedule 5.7
attached hereto.  The Company shall cause all Indebtedness (other than
the Notes and the other items indicated on Schedule 5.7 as “Permitted
Indebtedness”) to be converted into Common Stock, at an effective price equal to
or greater than $10.00 per share (as such figure shall be appropriately and
equitably adjusted upon any stock split, stock dividend, recapitalization or
similar transaction), on or prior to the filing of the Form 10 as contemplated
in Section 4.1 above.  Such items indicated on Schedule 5.7 as
“Permitted Indebtedness” shall be included as “Permitted Indebtedness” under the
Notes (provided such Indebtedness shall not be (a) secured, (b) paid or payable
prior to repayment in full of the Notes, (c) bear interest at a rate higher than
the Notes, or (d) have any terms more favorable than the Notes, except for the
credit card debt owed to Company executives indicated
thereon).  Schedule 5.7 shall also include a schedule of all accounts
payable, broken down by creditor, amount owed, and approximate number of days
outstanding as of the date hereof.

       

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
 

      5.8           No
Novation.  The amended and restated Note is being issued in
substitution for and not in satisfaction of the Note.  The amended and
restated Note shall not constitute a novation or satisfaction and accord of the
Note.  The Company hereby acknowledges and agrees that the amended and
restated Note shall amend, restate, modify, extend, renew and continue the terms
and provisions contained in the Note and shall not extinguish or release the
Company or any of its Subsidiaries under any Transaction Document or otherwise
constitute a novation of its obligations thereunder.

      

      5.9.           Compliance.  Since
the date of original issuance of the Note, the Company and its subsidiaries have
not (a) other than Permitted Indebtedness, entered into, created, incurred,
assumed, guaranteed or suffered to exist any Indebtedness of any kind, or (b)
other than Permitted Liens (as defined in the Notes), entered into, created,
incurred, assumed or suffered to exist any Liens of any kind, on or with respect
to any of its or their property or assets now owned or hereafter acquired or any
interest therein or any income or profits therefrom.  Without limiting
the foregoing, the convertible notes issued by the Company to John Evey are not
secured notwithstanding anything set forth therein, and the Company agrees to
cause John Evey to promptly enter into a written subordination agreement with
the Investor that is acceptable to the Investor in its sole and absolute
discretion.

      

      6.           REPRESENTATIONS
AND WARRANTIES OF THE INVESTOR.

      

      The Investor represents and warrants to
the Company as of the date hereof:

      

      6.1           Organization.  The
Investor is duly organized, validly existing and in good standing under the laws
of its organization.

      

      6.2           Authorization.  The
Investor has the requisite corporate power and authority to execute, deliver and
perform this Agreement and the other Transaction Documents to which it is a
party.  All corporate action on the part of the Investor and by its
officers, directors and shareholders necessary for the authorization, execution
and delivery of, and the performance by the Investor of its obligations under
this Agreement and the other Transaction Documents to which it is a party has
been taken, and no further consent or authorization of any other party is
required.

      

      6.3           Enforceability.  This
Agreement and the other Transaction Documents to which the Investor is a party
constitute the Investor’s valid and legally binding obligation, enforceable in
accordance with its terms, subject to (i) applicable bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or other similar laws of general
application relating to or affecting the enforcement of creditors’ rights
generally and (ii) general principles of equity.

      

      6.4           No
Conflicts.  The execution, delivery and performance of this
Agreement and the other Transaction Documents to which the Investor is a party,
and the consummation of the transactions contemplated hereby and thereby, will
not result in any violation of any provisions of any of the Investor’s
organizational documents or in a default under any provision of any instrument
or contract to which the Investor is a party or by which any of its assets are
bound, or in violation of any provision of any governmental requirement
applicable to the Investor or be in conflict with or constitute, with or without
the passage of time and giving of notice, a default under any such provision,
instrument or contract.

       

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
 

      6.5           Investor Status. At
the time the Investor was offered the Notes, the Conversion Shares and the
Forbearance Shares, it was, and at the date hereof it is, and on each date on
which it converts any Notes it will be either: (i) an “accredited investor” as
defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities
Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under
the Securities Act. The Investor is not required to be registered as a
broker-dealer under Section 15 of the Exchange Act.

       
 

      6.6           Experience of
Investor. The Investor, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Notes and the Conversion Shares, and has so
evaluated the merits and risks of such investment. The Investor is able to bear
the economic risk of an investment in the Notes and Conversion Shares and, at
the present time, is able to afford a complete loss of such
investment.

       
 

      6.7           General Solicitation.
The Investor is not purchasing the Notes or Conversion Shares as a result of any
advertisement, article, notice or other communication regarding the Notes or
Conversion Shares published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement..

       

      7.    MISCELLANEOUS

      7.1           Effect of this
Agreement.  Except as modified pursuant hereto, no other
changes or modifications to the original Transaction Documents are intended or
implied and in all other respects the original Transaction Documents 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 original Transaction Documents, the terms of this
Agreement shall control.  The Transaction Documents, including without
limitation this Agreement, shall be read and construed as one
agreement.

      

      7.2           Costs and
Expenses.  The Company, the Envision Guarantors and the
Investor 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, provided, however, that the
Company shall pay the Investor $5,000 for its expenses incurred or to be
incurred by it in connection with the negotiation and preparation of this
Agreement and the other Transaction Documents to be delivered in connection
herewith and $2,500 for Escrow Agent fees, which amounts may be withheld from
the $125,000 being advanced by the Investor hereunder.

      

      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.

       

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      
 

      7.4           Merger.  This
Agreement and the documents executed in connection herewith represent the entire
expression of the agreement of Company, the Envision Guarantors and Investor
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 Company, the Envision Guarantors and
Investor.

      

      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 New York 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
New York.

      

      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 Investor or any closing shall affect the
representations and warranties or the right of Investor 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.  Company 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 Company 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.

       

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      
 

      7.10           Mutual Waiver of Right of
Jury Trial. THE COMPANY, THE ENVISION GUARANTORS, AND THE INVESTOR 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 INVESTOR, ENVISION GUARANTORS OR COMPANY 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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          11

          
            

          

        

        
           

        

      

      
 

                 IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed on the day and year 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

      

      

      
        	
                 
      

              	
                GEMINI
      MASTER FUND, LTD.

              

      

      
        	
                 
      

              	
                By:
      GEMINI STRATEGIES, LLC, as investment
manager

              

      

      

      

      By: /s/ Steven
Winters                                                          

      Name:  Steven
Winters

      Title:  Managing
Member

       

      
        	
                 
      

              	
                GEMINI STRATEGIES, LLC,
      as Agent

              

      

      

      By: /s/ Steven
Winters                                                          

      Name:  Steven
Winters

                
Title:  Managing Member

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