<SEC-DOCUMENT>0001065949-17-000118.txt : 20170922
<SEC-HEADER>0001065949-17-000118.hdr.sgml : 20170922
<ACCEPTANCE-DATETIME>20170921211202
ACCESSION NUMBER:		0001065949-17-000118
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20170918
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170922
DATE AS OF CHANGE:		20170921

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Envision Solar International, Inc.
		CENTRAL INDEX KEY:			0001398805
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				208457250
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-53204
		FILM NUMBER:		171096624

	BUSINESS ADDRESS:	
		STREET 1:		5660 EASTGATE DRIVE
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92121
		BUSINESS PHONE:		858-799-4583

	MAIL ADDRESS:	
		STREET 1:		5660 EASTGATE DRIVE
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92121

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Casita Enterprises, Inc.
		DATE OF NAME CHANGE:	20070508
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>envision8ksept212017.htm
<TEXT>
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<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0pt 0 12pt; text-align: center"><FONT STYLE="font-size: 14pt"><B>UNITED
STATES</B></FONT><B><BR>
<FONT STYLE="font-size: 14pt">SECURITIES AND EXCHANGE COMMISSION</FONT><BR>
<FONT STYLE="font-size: 12pt">Washington, D.C. 20549</FONT></B></P>

<P STYLE="font: 18pt/normal Times New Roman, Times, Serif; margin: 0pt 0 12pt; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0pt 0 12pt; text-align: center"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0 12pt; text-align: center"><B>Date of Report (Date of earliest
event reported): September 18, 2017</B></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 20pt"><B>ENVISION
SOLAR INTERNATIONAL, INC.</B></FONT><BR>
<FONT STYLE="font-size: 10pt">(Exact name of registrant as specified in its charter) </FONT></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>Nevada</U></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(State or other jurisdiction of incorporation)</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR>
    <TD STYLE="width: 50%; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 49%; text-align: center; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>000-53204</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>26-1342810</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Commission
    File Number)</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(I.R.S.
    Employer Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0 12pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR>
    <TD STYLE="width: 50%; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 49%; text-align: center; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5660 Eastgate Drive, San Diego, CA</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>92126</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address of Principal Executive Offices)</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0 12pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0 12pt; text-align: center">Registrant&rsquo;s telephone
number, including area code: <B>(858) 799-4583</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR>
    <TD STYLE="width: 100%; text-align: center; line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Former name or former address if changed since last report.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0 12pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0pt 0 12pt">Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0pt 0 12pt"><FONT STYLE="font-family: Wingdings">o</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT><BR>
<BR>
<FONT STYLE="font-family: Wingdings">o</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT><BR>
<BR>
<FONT STYLE="font-family: Wingdings">o</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT><BR>
<BR>
<FONT STYLE="font-family: Wingdings">o</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>SECTION 1. REGISTRANT&rsquo;S BUSINESS
AND OPERATIONS</B></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Item 1.01 Entry into a Material Definitive
Agreement.</B></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On September 18,
2017, Envision Solar International, Inc., a Nevada corporation (the &ldquo;Company&rdquo;), entered into a revolving secured convertible
promissory note (the &ldquo;Revolver&rdquo;) and a secured convertible promissory note (the &ldquo;Note&rdquo;) with an unaffiliated
lender (the &ldquo;Lender&rdquo;). Pursuant to the Revolver, the Company has the right to make borrowings from the Lender in amounts
of up to 70% of the value of any specific purchase order (each a &ldquo;PO&rdquo;) received by the Company from a credit worthy
customer (each a &ldquo;Draw Down&rdquo;), up to a maximum of $3,000,000, commencing on the date of the Revolver and terminating
300 days after the date of the Revolver, by giving five (5) business days written notice to the Lender of a request for borrowings
(the &ldquo;Evaluation Period&rdquo;). During the Evaluation Period, if Lender determines in its commercially reasonable judgement
that the customer (&ldquo;Customer&rdquo;) is not credit worthy, Lender may refuse to advance the Draw Down. The Revolver bears
simple interest at the floating rate per annum equal to the 12 month USD LIBOR index rate quoted from time to time in New York,
New York by the Bloomberg Service plus 600 basis points (the &ldquo;Interest Rate&rdquo;). The Interest Rate will be adjusted on
the first day of each calendar month during the term of this Note to reflect any changes in the 12 month LIBOR rate as quoted at
1:00 pm Eastern Time in New York, New York on that day, or if that day is not a business day, on the next business day thereafter.
The principal and accrued unpaid interest with respect to each Draw Down is due and payable within five (5) business days of receipt
from the Customer by the Company of a payment due under the applicable PO (with respect to each Draw Down, the &ldquo;Maturity
Date&rdquo;). Each Draw Down is secured by a perfected recorded second priority security interest in all of the Company&rsquo;s
assets, as set forth in that certain Security Agreement by and between the Company and the Lender, dated September 18, 2017, a
copy of which is attached to this Current Report on Form 8-K as Exhibit 10.3. The Lender will have the right at any time until
the Maturity Date of a Draw Down, provided the Lender gives the Company written notice of the Lender&rsquo;s election to convert
prior to any prepayment of such Draw Down by the Company with respect to converting that portion of such Draw Down covered by the
prepayment, to convert all or any portion of the outstanding principal and accrued unpaid interest (the &ldquo;Conversion Amount&rdquo;),
into such number of fully paid and nonassessable shares of the Company&rsquo;s common stock as is determined by dividing the Conversion
Amount by the greater of (i) fifteen cents ($0.15) or (ii) 75% of the Volume Weighted Average Price of the Company&rsquo;s common
stock that is quoted on a public securities trading market (if more than one, the one with the then highest trading volume), during
the five (5) consecutive trading days immediately prior to the date of the Lender&rsquo;s written notice of the Lender&rsquo;s
election to convert. The Revolver is secured by a second priority perfected recorded security interest in all of the assets of
the Company, evidenced by a Security Agreement with the Lender, a copy of which is attached to this Report as Exhibit 10.3.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As additional consideration
for the loan made by the Lender to the Company as evidenced by the Revolver, the Company agreed to issue to the Lender common stock
purchase warrants exercisable for a period of three years from the date of issuance with an exercise price equal to the greater
of (i) $0.15 per share or (ii) 75% of the Volume Weighted Average Price of the Company&rsquo;s common stock that is quoted on a
public securities trading market (if more than one, the one with the then highest trading volume), during the five (5) consecutive
trading days immediately prior to the date of the applicable Draw Down. The number of warrants issuable to the Lender will equal
25% of the increase over the highest amount previously drawn down by the Company on the Revolver divided by the greater of (i)
fifteen cents ($0.15) or (ii) 75% of the Volume Weighted Average Price of the Company&rsquo;s common stock that is quoted on a
public securities trading market (if more than one, the one with the then highest trading volume), during the five (5) consecutive
trading days immediately prior to the date of the applicable Draw Down which causes the increase over the previous highest amount
borrowed. A copy of the form of warrant is attached to this Current Report on Form 8-K as Exhibit 10.5.</P>


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<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In addition to the
Revolver, the Lender agreed to lend $1,500,000 to the Company pursuant to the Note. The Company covenanted to use the proceeds
of the Note exclusively to pay-off the entire outstanding balance of that certain loan and security agreement that the Company
has with Silicon Valley Bank, dated October 30, 2015. The Note bears simple interest at the floating rate per annum equal to the
12 month USD LIBOR index rate quoted from time to time in New York, New York by the Bloomberg Service plus 400 basis points (the
&ldquo;Interest Rate&rdquo;). The Interest Rate will be adjusted on the first day of each calendar month during the term of the
Note to reflect any changes in the 12 month LIBOR rate as quoted at 1:00 pm Eastern Time in New York, New York on that day, or
if that day is not a business day, on the next business day thereafter. Interest will only accrue on outstanding principal. Accrued
unpaid interest is payable monthly on the first calendar day of each month for interest accrued during the previous month, with
all outstanding principal and accrued unpaid interest payable in full on or before three hundred and sixty-four (364) days after
the date of the Note (the &ldquo;Maturity Date&rdquo;), to the extent not converted into shares of the Company&rsquo;s common stock.
The Note is secured by a perfected recorded first priority security interest in all of the Company&rsquo;s assets, as set forth
in that certain Security Agreement by and between the Company and the Lender, dated September 18, 2017, a copy of which is attached
to this Current Report on Form 8-K as Exhibit 10.4. At any time until the Maturity Date and provided Lender gives the Company written
notice of Lender&rsquo;s election to convert prior to any prepayment of this Note by the Company with respect to converting that
portion of this Note covered by the prepayment, the Lender has the right to convert all or any portion of the outstanding principal
and accrued interest (the &ldquo;Conversion Amount&rdquo;), into such number of fully paid and nonassessable shares of the Company&rsquo;s
common stock as is determined by dividing the Conversion Amount by the greater of (i) fifteen cents ($0.15) or (ii) 75% of the
Volume Weighted Average Price of the Company&rsquo;s common stock that is quoted on a public securities trading market (if more
than one, the one with the then highest trading volume), during the five (5) consecutive trading days immediately prior to the
date of the Lender&rsquo;s written notice of its election to convert.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As additional consideration
for the loan evidenced by the Note, the Company agreed to issue to the Lender common stock purchase warrants exercisable for a
period of three years from the date of issuance with an exercise price equal to $0.15 per share. The number of warrants issuable
to the Lender is equal to 25% of the Loan Amount divided by fifteen cents ($0.15). A copy of the form of warrant is attached to
this Current Report on Form 8-K as Exhibit 10.5.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During any time
when the Note or the Revolver is outstanding, or when the Lender holds any Company stock, or any warrants to acquire Company stock
where the combination of both could result in the Lender owning stock with a current value of one million dollars or greater, in
the Company, the Lender will have certain review and consulting rights as described in the Note and the Revolver.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This brief description
of the Revolver, the Note, the Warrant and the Security Agreements is only a summary of the material terms and is qualified in
its entirety by reference to the full text of the documents as attached to this Current Report on Form 8-K as Exhibits 10.1, 10.2,
10.3, 10.4, and 10.5, respectively.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>SECTION 9. FINANCIAL STATEMENTS,
PRO FORMA FINANCIALS &amp; EXHIBITS</B></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0"><B>Item 9.01 Financial Statements and Exhibits.</B></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</TD>
    <TD STYLE="width: 0.5in"><A NAME="Exhibit_10_1"></A>10.1</TD>
    <TD STYLE="text-align: justify"><A HREF="ex10_1.htm">Revolving Convertible Promissory Note, dated September 18, 2017.</A></TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</TD>
    <TD STYLE="width: 0.5in"><A NAME="Exhibit_10_2"></A>10.2</TD>
    <TD STYLE="text-align: justify"><A HREF="ex10_2.htm">Convertible Secured Promissory Note, dated September 18, 2017.</A></TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</TD>
    <TD STYLE="width: 0.5in"><A NAME="Exhibit_10_3"></A>10.3</TD>
    <TD STYLE="text-align: justify"><A HREF="ex10_3.htm">Security Agreement - Purchase Order Financing, dated September 18, 2017.</A></TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in"><A NAME="Exhibit_10_4"></A>10.4</TD><TD STYLE="text-align: justify"><A HREF="ex10_4.htm">Security Agreement &ndash; Convertible Secured Promissory Note, dated September 18, 2017.</A></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</TD>
    <TD STYLE="width: 0.5in"><A NAME="Exhibit_10_5"></A>10.5</TD>
    <TD STYLE="text-align: justify"><A HREF="ex10_5.htm">Form of Warrant</A></TD></TR>
</TABLE>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify"></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3in">ENVISION SOLAR INTERNATIONAL, INC.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">Date: September 20, 2017</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3.25in">By: <U>/s/ Desmond Wheatley&#9;</U></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3.25in">Desmond Wheatley, Chief Executive Officer</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3.25in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3.25in; text-indent: -240pt"></P>

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<TYPE>EX-10.1
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<FILENAME>ex10_1.htm
<DESCRIPTION>REVOLVING CONVERTIBLE PROMISSORY NOTE
<TEXT>
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<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: left">Exhibit 10.1<B>&nbsp;</B></P>

<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>REVOLVING CONVERTIBLE</B></P>

<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROMISSORY NOTE</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">Up to $3,000,000&#9;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right">September 18, 2017</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">San Diego, California</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>FOR VALUE RECEIVED</B>,
Envision Solar International, Inc., a Nevada corporation (&ldquo;Borrower&rdquo;), hereby promises to pay to the order of <FONT STYLE="background-color: black">SFE
VCF, LLC</FONT>, a California limited liability company (&ldquo;Lender&rdquo;) at <FONT STYLE="background-color: black">P.O. Box
5005 PMB 134, Rancho Santa Fe, CA 92067</FONT>, pursuant to the terms of this Revolving Convertible Promissory Note (the &ldquo;Note&rdquo;),
the principal sum equal to the amount outstanding from time to time indicated on Schedule A of this Note reflecting advances made
by the Lender from time to time to the Borrower under this Note until a date 300 days from the date of this Note first above written
(the &ldquo;Termination Date&rdquo;), not to exceed a maximum outstanding principal amount of Three Million Dollars ($3,000,000),
bearing simple interest on outstanding principal at the floating rate per annum equal to the 12 month USD LIBOR index rate quoted
from time to time in New York, New York by the Bloomberg Service plus 600 basis points (the &ldquo;Interest Rate&rdquo;). The Interest
Rate will be adjusted on the first day of each calendar month during the term of this Note to reflect any changes in the 12 month
LIBOR rate as quoted at 1:00 pm Eastern Time in New York, New York on that day, or if that day is not a business day, on the next
business day thereafter. Interest will only accrue on outstanding principal. Principal and accrued interest are payable in accordance
with the terms of this Note.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">1.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Advances, Maturity, and Payment</B>. Subject to Lender&rsquo;s agreement to each draw,
Borrower has the right to draw on this Note and make borrowings from Lender in amounts of up to 70% of the value of any specific
purchase order (each a &ldquo;PO&rdquo;) received by Borrower from a credit worthy customer (each a &ldquo;Draw Down&rdquo;), up
to a maximum of $3,000,000, commencing on the date of this Note and terminating on the Termination Date, by giving five (5) business
days written notice to the Lender of a request for borrowings (the &ldquo;Evaluation Period&rdquo;). During the Evaluation Period,
if Lender determines in its commercially reasonable judgement that the customer (&ldquo;Customer&rdquo;) is not credit worthy,
Lender may refuse to advance the Draw Down. Borrower will use commercially reasonable efforts to ensure the credit worthiness of
each Customer for which a Draw Down on this Note is proposed. The principal amount outstanding on this Note from time to time is
set forth on Schedule A hereto, which will be updated by the Lender as Draw Downs under this Note are made and outstanding amounts
owed are repaid. The principal and accrued unpaid interest with respect to each Draw Down is due and payable within five (5) business
days of receipt from the Customer by Borrower of a payment due under the applicable PO (with respect to each Draw Down, the &ldquo;Maturity
Date&rdquo;). Principal and accrued unpaid interest are payable in cash on the Maturity Date unless sooner converted by Lender
into Borrower&rsquo;s equity in accordance with Paragraph 7 of this Note, or unless Lender elects in its sole discretion to have
the principal and/or interest payment made in shares of the Borrower&rsquo;s common stock, as provided in Paragraph 8 of this Note.
After the Termination Date, no further Draw Downs are permitted on the Note unless mutually agreed in writing by the Lender and
the Borrower, and all outstanding balances on the Note will become due and payable on the earliest to occur of (i) within five
(5) business days of receipt from the Customer by Borrower of a payment due under the applicable PO, (ii) 30 days after</FONT></P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">the due date of a Customer payment on
a PO with respect to unpaid POs, or (iii) 60 days after the Termination Date.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">2.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Security</B>. Each Draw Down is secured by a perfected recorded second priority security
interest in all of the Borrower&rsquo;s assets (the &ldquo;Collateral&rdquo;), as set forth in that certain Security Agreement
by and between Borrower and Lender, dated September 14, 2017 (the &ldquo;Security Agreement&rdquo;). While each PO is included
in the Collateral pledged as security for a Draw Down, the Lender may foreclose on the PO or any other assets of the Borrower in
the event of a default by the Borrower under this Note with respect to the Draw Down, subject to the senior lien in favor of the
Lender (the &ldquo;Affiliate Senior Lien&rdquo;) securing that certain Convertible Secured Promissory Note of even date herewith,
having Lender as the lender and Borrower as the borrower, and the conditions in Paragraph 3 of this Note. The Borrower shall have
no right to have any portion of the PO released from the security interest until the corresponding Draw Down is repaid in full.
Borrower will not cause any liens to be incurred by it that are senior to the Affiliate Senior Lien. </FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">3.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Default</B>. Any of the following shall constitute a default by Borrower hereunder:</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
failure of Borrower to make any payment of principal or interest required hereunder within five (5) business days of the due date
for such payment; or</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
failure of Borrower to fully perform any other material covenants and agreements under this Note and continuance of such failure
for a period of ten (10) days after written notice of the default by Lender to the Borrower.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Upon the occurrence
of a default hereunder, Lender may, at its option, declare immediately due and payable the entire unpaid outstanding balance of
principal and interest of this Note owing at the time of such declaration pursuant to this Note. In the event of a default by Borrower
under Paragraph 3(a) of this Note, commencing on the first day of the default and continuing thereafter until the default is cured,
interest will accrue on unpaid outstanding principal at the rate equal to 500 basis points over the Interest Rate on this Note.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">4.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Right of Prepayment</B>. Borrower has the right to prepay all or any portion of any Draw
Down at any time during the term of the Note without penalty. Lender will have three (3) business days from receipt of notice of
prepayment by the Borrower in which to convert the Draw Down into Borrower&rsquo;s common stock before the Draw Down is deemed
to be repaid.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">5.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Rights of Lender</B>. Lender has the right to audit all POs, invoices, and Customer payments
related to the Draw Downs.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">6.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Covenants of Borrower</B>. Borrower will maintain and deliver to Lender on a monthly basis
a ledger detailing the current status of each Draw Down, its corresponding PO, and all related invoices and Customer payments.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">7.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Conversion</B>. Lender will have the right at any time until the Maturity Date of a Draw
Down, provided Lender gives Borrower written notice of Lender&rsquo;s election to convert prior to any prepayment of such Draw
Down by the Borrower with respect to converting that portion of such Draw Down covered by the prepayment, to convert all or any
portion of the outstanding principal and accrued unpaid interest (the &ldquo;Conversion Amount&rdquo;), into such number of fully
paid</FONT></P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">and nonassessable shares of the Borrower&rsquo;s
common stock as is determined by dividing the Conversion Amount by the greater of (i) fifteen cents ($0.15) or (ii) 75% of the
Volume Weighted Average Price of the Borrower&rsquo;s common stock that is quoted on a public securities trading market (if more
than one, the one with the then highest trading volume), during the five (5) consecutive trading days immediately prior to the
date of Lender&rsquo;s written notice of Lender&rsquo;s election to convert.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">8.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Payment of Interest and Principal</B>. All principal and accrued unpaid interest with respect
to each Draw Down is payable in cash on the applicable Maturity Date or, in those instances where the Lender specifically elects
(by delivering written notice to Borrower at least one (1) business day before the due date for the payment) to be paid in shares
of the Borrower&rsquo;s common stock rather than in cash, principal and accrued unpaid interest will be payable to Lender into
such number of fully paid and nonassessable shares of the Borrower&rsquo;s common stock as is determined by dividing the amount
of principal and accrued unpaid interest due, by the greater of (i) fifteen cents ($0.15) or (ii) 75% of the Volume Weighted Average
Price of the Borrower&rsquo;s common stock that is quoted on a public securities trading market (if more than one, the one with
the then highest trading volume), during the five (5) consecutive trading days immediately prior to each applicable Maturity Date.
All payments on this Note are credited first to amounts due to Lender pursuant to Paragraph 11 of this Note, if any, then to accrued
unpaid interest, then to outstanding principal.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">9.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Additional Consideration</B>. As additional consideration for the loan made by the Lender
to the Borrower as evidenced by this Note, the Borrower hereby agrees to issue to Lender common stock purchase warrants exercisable
for a period of three years from the date of issuance with an exercise price equal to the greater of (i) $0.15 per share or (ii)
75% of the Volume Weighted Average Price of the Borrower&rsquo;s common stock that is quoted on a public securities trading market
(if more than one, the one with the then highest trading volume), during the five (5) consecutive trading days immediately prior
to the date of the applicable Draw Down. The number of warrants issuable to Lender pursuant to this Paragraph 9 of the Note will
equal 25% of the increase over the highest amount previously drawn down by Borrower on the Note divided by the greater of (i) fifteen
cents ($0.15) or (ii) 75% of the Volume Weighted Average Price of the Borrower&rsquo;s common stock that is quoted on a public
securities trading market (if more than one, the one with the then highest trading volume), during the five (5) consecutive trading
days immediately prior to the date of the applicable Draw Down which causes the increase over the previous highest amount borrowed.
The warrants will be issued to the Lender within five (5) business days after the date of the applicable Draw Down.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">10.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Use of Proceeds</B>. Borrower covenants to use the proceeds of each Draw Down for costs
related to supplies, inventory, labor and other direct costs and overhead required to fulfill the PO related to the Draw Down.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">11.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Costs of Collections</B>. Lender shall be entitled to collect reasonable attorney's fees
and costs from Borrower, as well as other costs and expenses reasonably incurred, in curing any default or attempting collection
of any payment due on this Note.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">12.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Payment. </B>This Note shall be payable at the option of the Lender in lawful money of
the United States or cancellation of debt owed by Lender to Borrower for inventory purchases made by Lender. </FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">13.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Place of Payment</B>. All payments on this Note are to be made or given to Lender at the
address first above written or to such other place as Borrower and Lender may from time to time agree by written agreement.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">14.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Nonrecourse</B>. In the event that the Borrower defaults on this Note, Lender shall look
solely to the Borrower and its assets for repayment and none of the shareholders, officers, directors or affiliates of the Borrower
shall have any personal liability for payment under this Note.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">15.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Waiver</B>. Borrower, for itself and its successors, transfers and assigns, waives presentment,
dishonor, protest, notice of protest, demand for payment and dishonor in nonpayment of this Note, bringing of suit or diligence
of taking any action to collect any sums owing hereunder or in proceeding against any of the rights and properties securing payment
hereunder.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">16.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Severability</B>. If any provision of this Note or the application thereof to any persons
or entities or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Note shall not be deemed
affected thereby and every provision of this Note shall be valid and enforceable to the fullest extent permitted by law.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">17.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>No Partner</B>. Lender shall not become or be deemed to be a partner or joint venturer
with Borrower by reason of any provision of this Note. Nothing herein shall constitute Borrower and Lender as partners or joint
venturers or require Lender to participate in or be responsible or liable for any costs, liabilities, expenses or losses of Borrower.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">18.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>No Waiver</B>. The failure to exercise any rights herein shall not constitute a waiver
of the right to exercise the same or any other right at any subsequent time in respect of the same event or any other event.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">19.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Governing Law</B>. This Note shall be governed by and construed solely in accordance with
the laws of the State of California.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">20.</FONT><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 12pt"><B>Entire Agreement</B>. This Note contains the entire understanding and agreement between
the parties with respect to the subject matter herein and may not be altered or amended except by the written agreement of the
parties.</FONT></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Management
Rights</B>. During any time when this Note is outstanding, or when the Lender holds any stock, or any warrants to acquire stock
where the combination of both could result in the Lender owning stock with a current value of one million dollars or greater, in
the Borrower, Lender shall have the following rights:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
shall be entitled to consult with and advise management of the Borrower on significant business issues, including management&rsquo;s
proposed annual operating plans, and management will meet with Lender regularly during each year at the Borrower&rsquo;s facilities
at mutually agreeable times for such consultation and advice and to review progress in achieving said plans.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
may examine the books and records of the Borrower and inspect its facilities and may request information at reasonable times and
intervals concerning the general status of the Borrower&rsquo;s financial condition and operations, provided that access to</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">highly confidential proprietary
information and facilities need not be provided.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall, concurrently with delivery to the board of directors, give a representative of Lender copies of all notices, minutes,
consents and other material that the Borrower provides to its directors, except that the representative may be excluded from access
to any material or meeting or portion thereof if the board of directors determines in good faith, upon advice of counsel, that
such exclusion is reasonably necessary to preserve the attorney-client privilege, to protect highly confidential proprietary information,
or for other similar reasons.&nbsp; Upon reasonable notice and at a scheduled meeting of the board or such other time, if any,
as the board may determine in its sole discretion, such representative may address the board with respect to Lender&rsquo;s concerns
regarding significant business issues facing the Borrower.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>,
Borrower has executed this Note as of the date first hereinabove written.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>BORROWER</B>:&#9;<B></B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 211.5pt"><B>Envision Solar
International, Inc.</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 211.5pt"><B>a Nevada corporation</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 211.5pt">By: /s/ Desmond
Wheatley<U>&#9;</U></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3.25in">Desmond Wheatley,
Chief Executive Officer</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 211.5pt"><B>LENDER</B>:</TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: black"><B>SFE VCF, LLC</B></FONT></TD></TR></TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 211.5pt"><B>a California limited liability
company</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify; text-indent: -3.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 211.5pt">By: /s/ Lender<U>&#9;</U></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify; text-indent: 22.5pt">[ ]</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Schedule A to Note</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Dated September 14, 2017</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Payable By Envision Solar International,
Inc.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">to <FONT STYLE="background-color: black">SFE
VCF, LLC</FONT></P>

<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 16%; border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><U>Date
    of Advance </U></FONT></TD>
    <TD STYLE="width: 19%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><U>Amount
    of Advance</U></FONT></TD>
    <TD STYLE="width: 20%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><U>Amount
    of Repayment</U></FONT></TD>
    <TD STYLE="width: 19%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><U>Date
    of Repayment</U></FONT></TD>
    <TD STYLE="width: 26%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><U>Cumulative
    Outstanding Balance</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 115%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>ex10_2.htm
<DESCRIPTION>CONVERTIBLE SECURED PROMISSORY NOTE
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<P>EXHIBIT 10.2</P>

<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"></P>

<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid">CONVERTIBLE
SECURED PROMISSORY NOTE</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">$1,500,000&#9;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: right">September 18, 2017</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">San Diego, California</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>FOR VALUE RECEIVED</B>, Envision Solar International, Inc., a
Nevada corporation (&ldquo;Borrower&rdquo;), hereby promises to pay to the order of <FONT STYLE="background-color: black">SFE VCF,
LLC</FONT>, a California limited liability company (&ldquo;Lender&rdquo;) at <FONT STYLE="background-color: black">P.O. Box 5005
PMB 134, Rancho Santa Fe, CA 92067</FONT>, pursuant to the terms of this convertible secured promissory note (the &ldquo;Note&rdquo;),
the principal sum of One Million Five Hundred Thousand Dollars U.S. ($1,500,000) plus simple interest at the floating rate per
annum equal to the 12 month USD LIBOR index rate quoted from time to time in New York, New York by the Bloomberg Service plus 400
basis points (the &ldquo;Interest Rate&rdquo;). The Interest Rate will be adjusted on the first day of each calendar month during
the term of this Note to reflect any changes in the 12 month LIBOR rate as quoted at 1:00 pm Eastern Time in New York, New York
on that day, or if that day is not a business day, on the next business day thereafter. Interest will only accrue on outstanding
principal. Accrued unpaid interest is payable monthly on the first calendar day of each month for interest accrued during the previous
month, with all outstanding principal and accrued unpaid interest payable in full on or before three hundred and sixty-four (364)
days after the date of this Note first above written (the &ldquo;Maturity Date&rdquo;), to the extent not converted into Borrower&rsquo;s
equity securities pursuant to Paragraph 5 of this Note.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Loan</B>.
On the date of this Note first above written, Borrower will borrow from Lender and Lender will lend to Borrower an amount equal
to One Million Five Hundred Thousand Dollars ($1,500,000) in cash (the &ldquo;Loan Amount&rdquo;). Payments on this Note will be
credited first to any reimbursable costs under Paragraph 9 of this Note, then to accrued but unpaid interest, and then to outstanding
principal. The Lender will keep the record of all repayments on this Note.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Security</B>.
This Note is secured by a perfected recorded first priority security interest in all of the Borrower&rsquo;s assets (the &ldquo;Collateral&rdquo;)
as set forth in that certain Security Agreement by and between Borrower and Lender, dated September 14, 2017 (the &ldquo;Security
Agreement&rdquo;). Upon full payment of this Note, as provided elsewhere in this Note, the Lender shall immediately execute all
documents and take all actions necessary or appropriate in order to release the security interest of this Note in the Collateral.
While the Collateral is pledged as security for this Note, the Lender may foreclose on the Collateral in the event of a default
by the Borrower under this Note, subject to senior liens, if any, and the conditions in Paragraph 3 of this Note. The Borrower
shall have no right to have any portion of the Collateral released from the security interest until the Note is repaid in full
and no more Advances will be made on it.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Default</B>.
Any of the following shall constitute a default by Borrower hereunder:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">The failure of Borrower to make any payment of principal or interest required hereunder within
five (5) business days of the due date for such payment, as it may properly be extended pursuant to the terms of this Note; or</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">The failure of Borrower to fully perform any other material covenants and agreements under this
Note and continuance of such failure for a period of ten (10) business days after written notice of the default by Lender to the
Borrower.</TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Upon the occurrence of
a default hereunder, Lender may, at its option, declare immediately due and payable the entire unpaid principal sum of this Note
together with all accrued and unpaid interest owing at the time of such declaration pursuant to this Note. In the event of a default
by Borrower under Paragraph 3(a) of this Note, commencing on the first day of the default and continuing thereafter until the default
is cured, interest will accrue on unpaid outstanding principal at the rate equal to 500 basis points over the Interest Rate on
this Note.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Right
of Prepayment</B>. In the event that the Borrower repays outstanding principal on the Note before the Maturity Date, Borrower will
pay a prepayment penalty in cash to Lender equal to the amount of interest that would have accrued on the Note at the Interest
Rate during the period from the date of the repayment until the Maturity Date.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Conversion</B>.
Lender will have the right at any time until the Maturity Date, provided Lender gives Borrower written notice of Lender&rsquo;s
election to convert prior to any prepayment of this Note by the Borrower with respect to converting that portion of this Note covered
by the prepayment, to convert all or any portion of the outstanding principal and accrued interest (the &ldquo;Conversion Amount&rdquo;),
into such number of fully paid and nonassessable shares of the Borrower&rsquo;s common stock as is determined by dividing the Conversion
Amount by the greater of (i) fifteen cents ($0.15) or (ii) 75% of the Volume Weighted Average Price of the Borrower&rsquo;s common
stock that is quoted on a public securities trading market (if more than one, the one with the then highest trading volume), during
the five (5) consecutive trading days immediately prior to the date of Lender&rsquo;s written notice of its election to convert.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Additional
Consideration</B>. As additional consideration for the loan made by the Lender to the Borrower as evidenced by this Note, the Borrower
hereby agrees to issue to Lender common stock purchase warrants exercisable for a period of three years from the date of issuance
with an exercise price equal to $0.15 per share. The number of warrants issuable to Lender pursuant to this Paragraph 6 of the
Note will equal 25% of the Loan Amount divided by fifteen cents ($0.15). The warrants will be issued to the Lender within five
(5) business days after the date of this Note first above written.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Use
of Proceeds</B>. Borrower covenants to use the proceeds of the Note exclusively to pay-off the entire outstanding amount of that
certain loan and security agreement that Borrower has with Silicon Valley Bank, dated October 30, 2015.</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Note
is Nonrecourse</B>. In the event that Borrower defaults on this Note, Lender shall look solely to the assets of the Borrower for
payment on this Note, and none of the shareholders, officers, directors or affiliates of the Borrower shall have any personal liability
for payment hereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Costs
of Collections</B>. Lender shall be entitled to collect reasonable attorney's fees and costs from Borrower, as well as other costs
and expenses reasonably incurred, in curing any default or attempting collection of any payment due on this Note.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Repayment
Options</B>. Payments of outstanding principal and interest on this Note may be made in cash, subject to the following: (a) the
Borrower may request in writing delivered to the Lender from time to time that a monthly payment be made by adding the amount due
to the outstanding principal of this Note, and the Lender may in its sole discretion approve or deny such request, and (b) Lender
may elect in its sole discretion by written notice to the Borrower delivered at least one (1) business day before the due date,
to have any payment of interest or principal on this Note paid in cash or in shares of the common stock of the Borrower, using
a price per share equal to the greater of (x) $0.15, or (y) 75% of the Volume Weighted Average Price of the Borrower&rsquo;s common
stock that is quoted on a public securities trading market (if more than one, the one with the highest trading volume), during
the five (5) consecutive trading days immediately prior to the due date for the payment.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Payment</B>.
This Note shall be payable in lawful money of the United States.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Place
of Payment</B>. All payments on this Note are to be made or given to Lender at the address provided to Borrower or to such other
place as Lender may from time to time direct by written notice to Borrower.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Waiver</B>.
Borrower, for itself and its successors, transfers and assigns, waives presentment, dishonor, protest, notice of protest, demand
for payment and dishonor in nonpayment of this Note, bringing of suit or diligence of taking any action to collect any sums owing
hereunder or in proceeding against any of the rights and properties securing payment hereunder.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Severability</B>.
If any provision of this Note or the application thereof to any persons or entities or circumstances shall, to any extent, be invalid
or unenforceable, the remainder of this Note shall not be deemed affected thereby and every provision of this Note shall be valid
and enforceable to the fullest extent permitted by law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No
Partner</B>. Lender shall not become or be deemed to be a partner or joint venturer with Borrower by reason of any provision of
this Note. Nothing herein shall constitute Borrower and Lender as partners or joint venturers or require Lender to participate
in or be responsible or liable for any costs, liabilities, expenses or losses of Borrower.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Governing
Law and Venue</B>. This Note shall be governed by and construed solely in accordance with the laws of the State of California without
giving effect to applicable</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">conflict of laws provisions. Borrower and Lender
agree that the sole jurisdiction and venue for any litigation arising out of the Note involving Borrower or Lender shall be in
the appropriate federal or state court located in San Diego County, California.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No
Waiver</B>. The failure to exercise any rights herein shall not constitute a waiver of the right to exercise the same or any other
right at any subsequent time in respect of the same event or any other event.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Entire
Agreement</B>. This Note contains the entire understanding and agreement between the parties with respect to the subject matter
herein and may not be altered or amended except by the written agreement of the parties.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Management
Rights</B>. During any time when this Note is outstanding, or when the Lender holds any stock, or any warrants to acquire stock
where the combination of both could result in the Lender owning stock with a current value of one million dollars or greater, in
the Borrower, Lender shall have the following rights:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
shall be entitled to consult with and advise management of the Borrower on significant business issues, including management&rsquo;s
proposed annual operating plans, and management will meet with Lender regularly during each year at the Borrower&rsquo;s facilities
at mutually agreeable times for such consultation and advice and to review progress in achieving said plans.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lender
may examine the books and records of the Borrower and inspect its facilities and may request information at reasonable times and
intervals concerning the general status of the Borrower&rsquo;s financial condition and operations, provided that access to highly
confidential proprietary information and facilities need not be provided.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall, concurrently with delivery to the board of directors, give a representative of Lender copies of all notices, minutes,
consents and other material that the Borrower provides to its directors, except that the representative may be excluded from access
to any material or meeting or portion thereof if the board of directors determines in good faith, upon advice of counsel, that
such exclusion is reasonably necessary to preserve the attorney-client privilege, to protect highly confidential proprietary information,
or for other similar reasons.&nbsp; Upon reasonable notice and at a scheduled meeting of the board or such other time, if any,
as the board may determine in its sole discretion, such representative may address the board with respect to Lender&rsquo;s concerns
regarding significant business issues facing the Borrower.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>,
Borrower has executed this Note as of the date first hereinabove written.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>BORROWER</B>:&#9;<B></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify"><B>Envision Solar International,
Inc.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify"><B>a Nevada corporation</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3.5in"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&#9;By: /s/ Desmond Wheatley<U>&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 247.5pt">Desmond Wheatley, Chief
Executive Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 3in"><B>LENDER</B>:</TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: black"><B>SFE VCF, LLC</B></FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify; text-indent: -0.5in"><B>a California
limited liability company</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify; text-indent: -3.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&#9;By: /s/ Lender<U>&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 274.5pt">[ ]</P>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>ex10_3.htm
<DESCRIPTION>SECURITY AGREEMENT - PURCHASE ORDER FINANCING
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">EXHIBIT 10.3</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U></U></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>SECURITY AGREEMENT - PURCHASE ORDER FINANCING</U></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40.5pt">THIS SECURITY AGREEMENT
(this &ldquo;Agreement&rdquo;) is made and entered into this 18th day of September 2017, by and between <FONT STYLE="background-color: black">SFE
VCF, LLC</FONT>, a California limited liability company (the &ldquo;Secured Party&rdquo;) and Envision Solar International, Inc.,
a Nevada corporation (&ldquo;Debtor&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>RECITALS</U></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
has become obligated to make payment of certain monies to the Secured Party pursuant to a written Revolving Convertible Promissory
Note of even date herewith (the &ldquo;Note&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
an express condition of Secured Party&rsquo;s accepting the Note, Secured Party requires that the Debtor grant the Secured Party
a security interest in all of Debtor&rsquo;s purchase orders and all proceeds from those purchase orders, as more fully described
in Section 1 to this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREFORE, the parties
do hereby agree as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Grant
of Security Interest</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As security for the payment
of all amounts payable under the aforesaid Note, Debtor hereby grants to Secured Party a second priority, recorded, perfected security
interest in the following assets of the Debtor (the &ldquo;Collateral&rdquo;):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 1in; text-align: justify">&ldquo;All of Debtor&rsquo;s now owned
or hereafter existing or acquired cash, cash equivalents, marketable securities, purchase orders, accounts receivable, general
intangibles, tangible assets, equipment, furniture, fixtures, inventory, goods, instruments, personal property, and chattel paper,
together with all proceeds derived from such assets.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Said security interest
in the Collateral is hereby granted upon the terms, covenants and agreements set forth in this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
as to Ownership</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Debtor hereby represents
that it has not sold, transferred or otherwise disposed of, or agreed to sell, transfer or otherwise dispose of the Collateral
or any part thereof or any interest therein except in the ordinary course of business. Debtor further represents that it has not
encumbered, or agreed to encumber, the Collateral or any part thereof or any interest therein, except in the ordinary course of
business or in accordance with that certain Convertible Secured Promissory Note by and between Debtor and Secured Party, dated
of even date herewith.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Covenants
of Debtor</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Debtor hereby covenants and agrees with Secured
Party that, during the term hereof:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
shall not sell, transfer or otherwise dispose of the Collateral or any part thereof, or agree to sell, transfer or otherwise dispose
of the Collateral or any part thereof, or any interest therein, without the prior written consent of Secured Party, except in the
ordinary course of business;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
shall not encumber, or agree to encumber, the Collateral, or any part thereof or any interest therein, by a prior security interest
without the prior written consent of Secured Party, except in the ordinary course of business;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
shall not permit or suffer any lien to hereafter attach to, or be levied upon, the Collateral or any party thereof or any interest
therein, under legal process and to continue unextinguished for a period of more than ninety (90) days unless, within such ninety
(90) day period, an appropriate bond satisfactory to Secured Party is given to stay the effect of such lien, except in the ordinary
course of business;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
all obligations secured hereby are paid in full, Debtor shall defend the Collateral against the claims and demands of all persons
arising out of matters occurring after the delivery hereof, other than matters which are the obligations of Secured Party, and
promptly pay, when due, all taxes and assessments upon the Collateral; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
will execute and Lender will properly record a UCC-1 Financing Statement (which Lender may do without Debtor&rsquo;s signature),
and such other documents, and do such other acts and things, as the Secured Party may reasonably require from time to time to establish
and maintain a valid perfected recorded security interest in the Collateral.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
Event of Default shall be deemed to have occurred hereunder if Debtor defaults under any of its payment obligations to the Secured
Party in the Note, or shall materially breach any term of the Note or this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the occurrence of an Event of Default hereunder, Secured Party may, at its option:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Declare
all obligations secured hereby immediately due and payable; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proceed forthwith with foreclosure of its security interests in the Collateral in the manner provided by law, and may cause the
Collateral to be sold, upon due notice, at the election of Secured Party, at either public or private sale, for cash or upon terms,
at such price or prices, and in such manner in all respects as Secured Party may deem proper, and at such sale Secured Party may
purchase the whole or any part of the Collateral. From the proceeds of any such sale Secured Party shall first pay all costs and
expenses (including reasonable expenses for attorneys&rsquo; fees), and shall apply the balance of such proceeds to accrued unpaid</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">interest and then to principal on the Note.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured
Party may seek all other remedies available to it at law or in equity under California law, including without limitation the California
uniform commercial code.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Appointment
of Secured Party as Attorney-in-Fact</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Debtor hereby appoints
Secured Party as Debtor&rsquo;s Attorney-in-Fact to do the following in the Event of Default by the Debtor:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receive,
take, endorse, assign and deliver in Secured Party&rsquo;s name or Debtor&rsquo;s name any and all checks, notes, drafts and other
instruments relating to the Collateral;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take
or bring in the name of Debtor or Secured Party all steps, actions and suits deemed by Secured Party necessary or desirable to
effect collection of the Collateral;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settle,
compromise or release in whole or in part, any amounts due Debtor from his account debtors;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extend
the time for payment of any sums due to Debtor by Debtor&rsquo;s account debtors; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Do
all things necessary or appropriate to carry out this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This power, being coupled
with interest, is irrevocable so long as Debtor has any obligation to the Secured Party under the Note. Secured Party shall be
further permitted access to all of Debtor&rsquo;s books and records relating to the Collateral during normal working hours, on
such notice as Secured Party may deem appropriate.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Release
of Security Interest</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Upon performance of all
obligations secured hereby, the security interests herein granted shall terminate and Secured Party shall execute such instruments
and perform such acts as may be reasonably requested by Debtor in connection with the release and termination of such security
interest.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Waiver</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">No waiver by Secured Party
of any default hereunder shall operate as a waiver of any other default hereunder or of the same default on a future occasion.
All rights and remedies of Secured Party hereunder, or under any other instrument securing any of the obligations secured hereby,
shall be cumulative to the full extent permitted by law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All notices, demands, requests
or other communications required or permitted to be given or made under this Security Agreement shall be in writing and shall be
deemed to have been duly given or served if sent by United States registered or certified mail, postage prepaid, addressed to the
party intended, or by personal delivery, at its address set forth below (or such other address as it may designate by notice given
to the other party in manner aforesaid) to wit:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Secured Party:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify"><FONT STYLE="background-color: black">SFE
VCF, LLC</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify"><FONT STYLE="background-color: black">P.O.
Box 5005 PMB 134 </FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify"><FONT STYLE="background-color: black">Rancho
Santa Fe, CA 92067</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Telephone: _________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Email Address: ________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Attention:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Debtor:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Envision Solar International, Inc.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">5660 Eastgate Drive</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">San Diego, California 92126</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Telephone No.: (858) 799-4583</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Email Address: desmond.wheatley@envisionsolar.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Attention: Desmond Wheatley, Chief
Executive Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In the case of a mailed
notice, the registration slip or certificate slip, and not the return slip, shall be conclusive evidence of the mailing of any
such notice, and such notice shall be deemed to have been given three (3) days after such mailing.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Applicable
Law</U>. This Agreement shall, in all respects, be governed by the laws of the State of California.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any
conflict between any provision contained herein and any present or future statute, law, ordinance or regulation, the latter shall
prevail, and the provision of this Agreement which is affected shall be curtailed and limited only to the extent necessary to bring
it within the requirements of the law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Assurances</U>. Each of the parties hereto shall execute and deliver, and acknowledge as appropriate any and all additional papers,
documents and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance
of their obligations hereunder to carry out the intent of the parties hereto, including without limitation the execution and recording
of a UCC-1 Financing Statement in a form satisfactory to Secured Party and its counsel.</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Modification
or Amendments</U>. No amendment, change or modification of this Agreement shall be valid, unless in writing and signed by all of
the parties to this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns</U>. Except as otherwise expressly provided herein, no party may assign or transfer its rights or obligations hereunder
without the written consent of all parties to this Agreement. If properly assigned and transferred, all of the terms and provision
contained herein shall inure to the benefit of and shall be binding upon the parties hereto and their respective heirs, legal representatives,
successor and assigns.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement</U>. This Agreement constitutes the entire understanding and agreement of the parties with respect to its subject matter
and any and all prior agreements, understandings and representations with respect to its subject matter are hereby terminated and
cancelled in their entirety and are of no further force or effect. No party shall be entitled to rely on any statement, representation
or agreement not herein stated.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interpretation</U>.
The covenants of good faith and fair dealing are incorporated herein by this reference. This Agreement shall, whenever possible,
be given a reasonable practical and workable interpretation so as to affect the general intentions of the parties. Neither party
shall be entitled to any advantages due to another party&rsquo;s preparation of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Captions</U>.
The captions appearing at the commencement of the paragraph hereof are descriptive only and for convenience in reference. Should
there be any conflict between any such caption and the paragraph at the head of which it appears, the section and not such caption
shall control and govern in the construction of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Parties
in Interest</U>. Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by
reason of the Agreement on any persons other than the parties and, where applicable, their respective owners, partners, shareholders,
directors, officers, employees, servants, representatives, agents heirs, executors, administrators, successors and/or assigns.
Nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third person to any party
to this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exhibits</U>.
All exhibits attached hereto are hereby incorporated by this reference.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF, the
parties have executed this Security Agreement on the date first hereinabove set forth.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase"><B>Secured
Party:</B></FONT>&#9;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: black">SFE VCF,
LLC,</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A California limited liability company</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">By: <U>&#9;/s/ Lender&#9;&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Its: <U>&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>DEBTOR:&#9;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Envision Solar International, Inc.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">By: <U>&#9;/s/ Desmond Wheatley&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt">Desmond Wheatley, Chief
Executive Officer</P>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>ex10_4.htm
<DESCRIPTION>SECURITY AGREEMENT - CONVERTIBLE SECURED PROMISSORY NOTE
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">EXHIBIT 10.4<B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>SECURITY AGREEMENT - CONVERTIBLE SECURED
PROMISSORY NOTE</U></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40.5pt">THIS SECURITY AGREEMENT
(this &ldquo;Agreement&rdquo;) is made and entered into this 18th day of September 2017, by and between <FONT STYLE="background-color: black">SFE
VCF, LLC</FONT>, a California limited liability company (the &ldquo;Secured Party&rdquo;) and Envision Solar International, Inc.,
a Nevada corporation (&ldquo;Debtor&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>RECITALS</U></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
has become obligated to make payment of certain monies to the Secured Party pursuant to a written Convertible Secured Promissory
Note of even date herewith (the &ldquo;Note&rdquo;).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
an express condition of Secured Party&rsquo;s accepting the Note, Secured Party requires that the Debtor grant the Secured Party
a security interest in all of Debtor&rsquo;s assets, as more fully described in Section 1 to this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREFORE, the parties
do hereby agree as follows:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Grant
of Security Interest</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As security for the payment
of all amounts payable under the aforesaid Note, Debtor hereby grants to Secured Party a first priority, recorded, perfected security
interest in the following assets of the Debtor (the &ldquo;Collateral&rdquo;):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 1in; text-align: justify">&ldquo;All of Debtor&rsquo;s now owned
or hereafter existing or acquired cash, cash equivalents, marketable securities, purchase orders, accounts receivable, general
intangibles, tangible assets, equipment, furniture, fixtures, inventory, goods, instruments, personal property, and chattel paper,
together with all proceeds derived from such assets.&rdquo;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Said security interest
in the Collateral is hereby granted upon the terms, covenants and agreements set forth in this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
as to Ownership</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Debtor hereby represents
that it has not sold, transferred or otherwise disposed of, or agreed to sell, transfer or otherwise dispose of the Collateral
or any part thereof or any interest therein except in the ordinary course of business. Debtor further represents that it has not
encumbered, or agreed to encumber, the Collateral or any part thereof or any interest therein, except in the ordinary course of
business or in accordance with that certain Revolving Convertible Promissory Note by and between Debtor and Secured Party, dated
of even date herewith.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Covenants
of Debtor</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Debtor hereby covenants and agrees with Secured
Party that, during the term hereof:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
shall not sell, transfer or otherwise dispose of the Collateral or any part thereof, or agree to sell, transfer or otherwise dispose
of the Collateral or any part thereof, or any interest therein, without the prior written consent of Secured Party, except in the
ordinary course of business;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
shall not encumber, or agree to encumber, the Collateral, or any part thereof or any interest therein, by a prior security interest
without the prior written consent of Secured Party, except in the ordinary course of business;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
shall not permit or suffer any lien to hereafter attach to, or be levied upon, the Collateral or any party thereof or any interest
therein, under legal process and to continue unextinguished for a period of more than ninety (90) days unless, within such ninety
(90) day period, an appropriate bond satisfactory to Secured Party is given to stay the effect of such lien, except in the ordinary
course of business;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
all obligations secured hereby are paid in full, Debtor shall defend the Collateral against the claims and demands of all persons
arising out of matters occurring after the delivery hereof, other than matters which are the obligations of Secured Party, and
promptly pay, when due, all taxes and assessments upon the Collateral; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debtor
will execute and Lender will properly record a UCC-1 Financing Statement (which Lender may do without Debtor&rsquo;s signature),
and such other documents, and do such other acts and things, as the Secured Party may reasonably require from time to time to establish
and maintain a valid perfected recorded security interest in the Collateral.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
Event of Default shall be deemed to have occurred hereunder if Debtor defaults under any of its payment obligations to the Secured
Party in the Note, or shall materially breach any term of the Note or this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the occurrence of an Event of Default hereunder, Secured Party may, at its option:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Declare
all obligations secured hereby immediately due and payable; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proceed forthwith with foreclosure of its security interests in the Collateral in the manner provided by law, and may cause the
Collateral to be sold, upon due notice, at the election of Secured Party, at either public or private sale, for cash or upon terms,
at such price or prices, and in such manner in all respects as Secured Party may deem proper, and at such sale Secured Party may
purchase the whole or any part of the Collateral. From the proceeds of any such sale Secured Party shall first pay all costs and
expenses (including reasonable expenses for attorneys&rsquo; fees), and shall apply the balance of such proceeds to accrued unpaid</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">interest and then to principal on the Note.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured
Party may seek all other remedies available to it at law or in equity under California law, including without limitation the California
uniform commercial code.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Appointment
of Secured Party as Attorney-in-Fact</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Debtor hereby appoints
Secured Party as Debtor&rsquo;s Attorney-in-Fact to do the following in the Event of Default by the Debtor:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receive,
take, endorse, assign and deliver in Secured Party&rsquo;s name or Debtor&rsquo;s name any and all checks, notes, drafts and other
instruments relating to the Collateral;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take
or bring in the name of Debtor or Secured Party all steps, actions and suits deemed by Secured Party necessary or desirable to
effect collection of the Collateral;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settle,
compromise or release in whole or in part, any amounts due Debtor from his account debtors;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extend
the time for payment of any sums due to Debtor by Debtor&rsquo;s account debtors; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Do
all things necessary or appropriate to carry out this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This power, being coupled
with interest, is irrevocable so long as Debtor has any obligation to the Secured Party under the Note. Secured Party shall be
further permitted access to all of Debtor&rsquo;s books and records relating to the Collateral during normal working hours, on
such notice as Secured Party may deem appropriate.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Release
of Security Interest</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Upon performance of all
obligations secured hereby, the security interests herein granted shall terminate and Secured Party shall execute such instruments
and perform such acts as may be reasonably requested by Debtor in connection with the release and termination of such security
interest.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Waiver</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">No waiver by Secured Party
of any default hereunder shall operate as a waiver of any other default hereunder or of the same default on a future occasion.
All rights and remedies of Secured Party hereunder, or under any other instrument securing any of the obligations secured hereby,
shall be cumulative to the full extent permitted by law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All notices, demands, requests
or other communications required or permitted to be given or made under this Security Agreement shall be in writing and shall be
deemed to have been duly given or served if sent by United States registered or certified mail, postage prepaid, addressed to the
party intended, or by personal delivery, at its address set forth below (or such other address as it may designate by notice given
to the other party in manner aforesaid) to wit:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Secured Party:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify"><FONT STYLE="background-color: black">SFE
VCF, LLC</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify"><FONT STYLE="background-color: black">P.O.
Box 5005 PMB 134 </FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify"><FONT STYLE="background-color: black">Rancho
Santa Fe, CA 92067</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Telephone: _________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Email Address: ________________</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Attention:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Debtor:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Envision Solar International, Inc.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">5660 Eastgate Drive</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">San Diego, California 92126</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Telephone No.: (858) 799-4583</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Email Address: desmond.wheatley@envisionsolar.com</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify">Attention: Desmond Wheatley, Chief
Executive Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In the case of a mailed
notice, the registration slip or certificate slip, and not the return slip, shall be conclusive evidence of the mailing of any
such notice, and such notice shall be deemed to have been given three (3) days after such mailing.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Applicable
Law</U>. This Agreement shall, in all respects, be governed by the laws of the State of California.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any
conflict between any provision contained herein and any present or future statute, law, ordinance or regulation, the latter shall
prevail, and the provision of this Agreement which is affected shall be curtailed and limited only to the extent necessary to bring
it within the requirements of the law.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Assurances</U>. Each of the parties hereto shall execute and deliver, and acknowledge as appropriate any and all additional papers,
documents and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance
of their obligations hereunder to carry out the intent of the parties hereto, including without limitation the execution and recording
of a UCC-1 Financing Statement in a form satisfactory to Secured Party and its counsel.</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Modification
or Amendments</U>. No amendment, change or modification of this Agreement shall be valid, unless in writing and signed by all of
the parties to this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns</U>. Except as otherwise expressly provided herein, no party may assign or transfer its rights or obligations hereunder
without the written consent of all parties to this Agreement. If properly assigned and transferred, all of the terms and provision
contained herein shall inure to the benefit of and shall be binding upon the parties hereto and their respective heirs, legal representatives,
successor and assigns.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement</U>. This Agreement constitutes the entire understanding and agreement of the parties with respect to its subject matter
and any and all prior agreements, understandings and representations with respect to its subject matter are hereby terminated and
cancelled in their entirety and are of no further force or effect. No party shall be entitled to rely on any statement, representation
or agreement not herein stated.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interpretation</U>.
The covenants of good faith and fair dealing are incorporated herein by this reference. This Agreement shall, whenever possible,
be given a reasonable practical and workable interpretation so as to affect the general intentions of the parties. Neither party
shall be entitled to any advantages due to another party&rsquo;s preparation of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Captions</U>.
The captions appearing at the commencement of the paragraph hereof are descriptive only and for convenience in reference. Should
there be any conflict between any such caption and the paragraph at the head of which it appears, the section and not such caption
shall control and govern in the construction of this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Parties
in Interest</U>. Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by
reason of the Agreement on any persons other than the parties and, where applicable, their respective owners, partners, shareholders,
directors, officers, employees, servants, representatives, agents heirs, executors, administrators, successors and/or assigns.
Nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third person to any party
to this Agreement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exhibits</U>.
All exhibits attached hereto are hereby incorporated by this reference.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF, the
parties have executed this Security Agreement on the date first hereinabove set forth.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="text-transform: uppercase"><B>Secured
Party:</B></FONT>&#9;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="background-color: black">SFE VCF,
LLC</FONT>,</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A California limited liability company</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">By: <U>&#9;/s/ Lender&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Its: <U>&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>DEBTOR:&#9;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Envision Solar International, Inc.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">By: <U>&#9;/s/ Desmond Wheatley&#9;&#9;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt">Desmond Wheatley, Chief
Executive Officer</P>


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<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>ex10_5.htm
<DESCRIPTION>FORM OF WARRANT
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
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<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">EXHIBIT 10.5&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>THIS SECURITY HAS NOT BEEN REGISTERED
OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 (THE &ldquo;ACT&rdquo;) OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED
OR SOLD UNLESS REGISTERED AND QUALIFIED PURSUANT TO THE APPLICABLE PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR UNLESS AN
EXEMPTION FROM SUCH REGISTRATION OR QUALIFICATION APPLIES. THEREFORE, NO SALE OR TRANSFER OF THIS SECURITY SHALL BE MADE, NO ATTEMPTED
SALE OR TRANSFER SHALL BE VALID, AND THE ISSUER SHALL NOT BE REQUIRED TO GIVE ANY EFFECT TO ANY SUCH TRANSACTION UNLESS (A) SUCH
TRANSACTION HAS BEEN DULY REGISTERED UNDER THE ACT AND QUALIFIED OR APPROVED UNDER APPROPRIATE STATE SECURITIES LAWS, OR (B) THE
ISSUER HAS FIRST RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH REGISTRATION, QUALIFICATION OR APPROVAL
IS NOT REQUIRED. </B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>WARRANT</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">For the Purchase of Shares of Common
Stock of</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ENVISION SOLAR INTERNATIONAL, INC.</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Void After 5 P.M. __________ __, 20__</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 25%">No.</TD>
    <TD STYLE="width: 25%">&nbsp;</TD>
    <TD STYLE="width: 25%; text-align: right; vertical-align: middle">Date:</TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Warrant to Purchase _______________________
(_____) Shares of Common Stock</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>THIS IS TO CERTIFY</B>, that, for
value received, _______________________, or registered assigns (the &ldquo;Holder&rdquo;), is entitled, subject to the terms and
conditions hereinafter set forth, on or after the date hereof, and at any time prior to 5 P.M., Pacific Time (&ldquo;PT&rdquo;),
on ________ __, 20__, but not thereafter, to purchase such number of shares of common stock, par value $0.001 (the &ldquo;Shares&rdquo;),
of Envision Solar International, Inc., a Nevada corporation (the &ldquo;Company&rdquo;), from the Company as set forth above, upon
payment to the Company of an amount per Share equal to (a) $0.15, if the Warrant is issued under Paragraph 6 of that certain Convertible
Secured Promissory Note, dated September __, 2017, issued by the Company, as borrower, to the Holder, as lender, or otherwise (b)
the greater of (i) $0.15 or (ii) 75% of the Volume Weighted Average Price of the Company&rsquo;s common stock that is quoted on
a public securities trading market (if more than one, the one with the then highest trading volume), during the five (5) consecutive
trading days immediately prior to the date of the issuance of this Warrant, which is the date of this Warrant first above written
(the &ldquo;Purchase Price&rdquo;), if and to the extent this Warrant is exercised, in whole or in part, during the period this
Warrant remains in force, subject in all cases to adjustment as provided in Section 2 hereof, and to receive a certificate or certificates
representing the Shares so purchased upon presentation and surrender to the Company of this Warrant with the form of Subscription
Agreement attached hereto, including changes thereto reasonably requested by the Company, duly executed and accompanied by payment
of the Purchase Price of each Share.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>SECTION 1.</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Terms of this Warrant</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Time
of Exercise</U>. This Warrant may be exercised at any time and from time to time after 9:00 A.M., PT, on the date hereof (the &ldquo;Exercise
Commencement Date&rdquo;), but no later than 5:00 P.M., PT on ________ __, 20__ (the &ldquo;Expiration Time&rdquo;), at which time
this Warrant shall become void and all rights hereunder shall cease.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Manner
of Exercise</U>.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">1.2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder may exercise this Warrant, in whole or in part, upon surrender of this Warrant, with the form of Subscription Agreement
attached hereto duly executed, to the Company at its corporate office in San Diego, California, and upon payment to the Company
of the full Purchase Price for each Share to be purchased in lawful money of the United States, or by certified or cashier&rsquo;s
check, or wired funds, and upon compliance with and subject to the conditions set forth herein.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">1.2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
receipt of this Warrant with the form of Subscription Agreement duly executed and accompanied by payment of the aggregate Purchase
Price for the Shares for which this Warrant is then being exercised, the Company shall cause to be issued certificates for the
total number of whole Shares for which this Warrant is being exercised in such denominations as are required for delivery to the
Holder, and the Company shall thereupon deliver such certificates to the Holder or its nominee.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">1.2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
case the Holder shall exercise this Warrant with respect to less than all of the Shares that may be purchased under this Warrant,
the Company shall execute a new Warrant for the balance of the Shares that may be purchased upon exercise of this Warrant and deliver
such new Warrant to the Holder.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">1.2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company covenants and agrees that it will pay when due and payable any excise taxes which may be payable in respect of the issue
of this Warrant, or the issue of Shares upon the exercise of this Warrant. The Company shall not, however, be required to pay any
tax which may be payable in respect of any transfer involved in the issuance or delivery of this Warrant or of the Shares in a
name other than that of the Holder at the time of surrender, and until the payment of such tax the Company shall not be required
to issue such Shares.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange
of Warrant</U>. This Warrant may be divided into, combined with or exchanged for another Warrant or Warrants of like tenor to purchase
a like aggregate number of Shares. If the Holder desires to divide, combine or exchange this Warrant, he shall make such request
in writing delivered to the Company at its corporate office and shall surrender this Warrant and any other Warrants to be so divided,
combined or exchanged. The Company shall execute and deliver to the person entitled thereto a Warrant or Warrants, as the case
may be, as so requested. The Company shall not be required to effect any division, combination or exchange which will result in
the issuance of a Warrant entitling the Holder to purchase upon exercise a fraction of a Share. The Company may require the Holder
to pay a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any division, combination
or exchange of Warrants.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Holder
as Owner</U>. Prior to surrender of this Warrant in accordance with Section 1.5 for registration or assignment, the Company may
deem and treat the Holder as the absolute owner of this Warrant (notwithstanding any notation of ownership or other writing hereon)
for the purpose of any exercise hereof and for all other purposes, and the Company shall not be affected by any notice to the contrary.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Method
of Assignment</U>. Any assignment or transfer of any portion or all of this Warrant shall be made by surrender of this Warrant
to the Company at its principal office with the form of assignment attached hereto duly executed and accompanied by funds sufficient
to pay any transfer tax. In such event, the Company shall, without charge, execute and deliver a new Warrant in the name of the
assignee named in such instrument of assignment and this Warrant shall promptly be canceled.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Rights
of Holder</U>. Nothing contained in this Warrant shall be construed as conferring upon the Holder the right to vote, consent or
receive notice as a shareholder in respect of any meetings of shareholders for the election of directors or any other matter, or
as having any rights whatsoever as a shareholder of the Company, until Shares are duly and properly issued to the Holder upon the
exercise of this Warrant.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lost
Certificates</U>. If this Warrant is lost, stolen, mutilated or destroyed, the Company shall, on such reasonable terms as to indemnity
or otherwise as it may impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant
of like denomination and tenor as, and in substitution for, this Warrant, which shall thereupon become void. Any such new Warrant
shall constitute a substituted and not an additional contractual obligation of the Company.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">1.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Covenants
of the Company</U>. The Company covenants and agrees as follows:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">1.8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
all times the Company shall reserve and keep available for the exercise of this Warrant such number of authorized shares of Common
Stock as are sufficient to permit the exercise in full of this Warrant.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">1.8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company covenants that all Shares when issued upon the exercise of this Warrant will be validly issued, fully paid, nonassessable
and free of preemptive rights.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>SECTION 2.</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Adjustment of Purchase Price</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>and Number of Shares Purchasable upon
Exercise</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock
Splits</U>. If the Company at any time or from time to time after the issuance date of this Warrant effects a subdivision of the
outstanding Common Stock, the Purchase Price then in effect immediately before that subdivision shall be proportionately decreased,
and conversely, if the Company at any time or from time to time after the issuance date of this Warrant combines the outstanding
shares of Common Stock, the Purchase Price then in effect immediately before the combination shall be proportionately increased.
Any adjustment under this subsection 2.1 shall become effective at the close of business on the date the subdivision or combination
becomes effective.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Dividends
and Distributions</U>. In the event the Company at any time, or from time to time after the issuance date of this Warrant makes,
or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable
in additional shares of Common Stock, then and in each such event the Purchase Price then in effect shall be decreased as of the
time of such issuance or, in the event such a record date is fixed, as of the close of business on such record date, by multiplying
the Purchase Price then in effect by a fraction (i) the numerator of which is the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of business on such record date, and (ii) the denominator
of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance
or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or
distribution; provided, however, that if such record date is fixed and such dividend is not fully paid or if such distribution
is not fully made on the date fixed therefor, the Purchase Price shall be recomputed accordingly as of the close of business on
such record date and thereafter the Purchase Price shall be adjusted pursuant to this subsection 2.2 as of the time of actual payment
of such dividends or distributions.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Recapitalization
or Reclassification</U>. If the Shares issuable upon the exercise of the Warrant are changed into the same or a different number
of shares of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a subdivision
or combination of shares or stock dividend or a reorganization, merger, consolidation or sale of assets, provided for elsewhere
in this Section 2), then, and in any such event, the Holder shall thereafter be entitled to receive upon exercise of this Warrant
such number and kind of stock or other securities or property of the Company to which a holder of Shares deliverable upon exercise
of this Warrant would have been entitled on such reclassification or other change, subject to further adjustment as provided herein.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>SECTION 3.</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Status Under the Securities Act of
1933</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Warrant and
the Shares issuable upon exercise of this Warrant have not been registered under the Securities Act of 1933, as amended (&ldquo;the
Act&rdquo;). Upon exercise, in whole or in part, of this Warrant, the certificates representing the Shares shall bear the legend
first above written.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>SECTION 4. </B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Other Matters</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Binding
Effect</U>. All the covenants and provisions of this Warrant by or for the benefit of the Company shall bind and inure to the benefit
of its successors and assigns hereunder.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Notices or demands pursuant to this Warrant to be given or made by the Holder to or on the Company shall be sufficiently given
or made if sent by certified or registered mail, return receipt requested, postage prepaid, or by email or facsimile or personal
delivery and addressed, until another address is designated in writing by the Company, as follows:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify">Envision Solar International,
Inc.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify">5660 Eastgate Drive</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify">San Diego, California 92126</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify">Telephone No.: (858) 799-4583</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify">Facsimile No.: (858) ________</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify">Email Address: ________________</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify">Attention: Desmond Wheatley,
Chief Executive Officer</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Notices to the Holder
provided for in this Warrant shall be deemed given or made by the Company if sent by certified or registered mail, return receipt
requested, postage prepaid, or by facsimile or email or personal delivery and addressed to the Holder at his last known address
as it shall appear on the books of the Company.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. The validity, interpretation and performance of this Warrant shall be governed by the laws of the State of California.
The venue for any legal proceedings under this Warrant will be in the appropriate forum in the County of San Diego, State of California.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Parties
Bound and Benefited</U>. Nothing in this Warrant expressed and nothing that may be implied from any of the provisions hereof is
intended, or shall be construed, to confer upon, or give to, any person or corporation other than the Company and the Holder any
right, remedy or claim under any promise or agreement hereof, and all covenants, conditions, stipulations, promises and agreements
contained in this Warrant shall be for the sole and exclusive benefit of the Company and its successors and of the Holder, its
successors and permitted assigns.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.
The Section headings herein are for convenience only and are not part of this Warrant and shall not affect the interpretation thereof.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>,
this Warrant has been duly executed by the Company as of ________, 201_.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 3in"><B>ENVISION SOLAR INTERNATIONAL, INC.</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 215.5pt; text-align: justify; text-indent: 0.5pt">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 215.5pt; text-align: justify; text-indent: 0.5pt">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 215.5pt; text-align: justify; text-indent: 0.5pt">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 215.5pt; text-align: justify; text-indent: 0.5pt">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0 0 0 215.5pt; text-align: justify; text-indent: 0.5pt">By:
<U>&#9; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3.25in">Desmond Wheatley,
Chief Executive Officer</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ASSIGNMENT OF WARRANT</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/150% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>FOR VALUE RECEIVED</B>,
_______________________ hereby sells, assigns and transfers unto _____________________________ the within Warrant and the rights
represented thereby, and does hereby irrevocably constitute and appoint _______________________________ Attorney, to transfer said
Warrant on the books of the Company, with full power of substitution.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Dated: <U>&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Signed: <U>&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Signature guaranteed:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 3.5in">&nbsp;</P>


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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SUBSCRIPTION AGREEMENT</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FOR THE EXERCISE OF WARRANTS</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The undersigned
hereby irrevocably subscribes for the purchase of _____________ Shares pursuant to and in accordance with the terms and conditions
of this Warrant, which Shares should be delivered to the undersigned at the address stated below. If said number of Shares are
not all of the Shares purchasable hereunder, a new Warrant of like tenor for the balance of the remaining Shares purchasable hereunder
should be delivered to the undersigned at the address stated below.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The undersigned
elects to pay the aggregate Purchase Price for such Shares in the following manner:</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">[ ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
the enclosed cash or check made payable to the Company in the amount of $________; or</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">[ ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
wire transfer of United States funds to the account of the Company in the amount of $____________, which transfer has been made
before or simultaneously with the delivery of this Notice pursuant to the instructions of the Company.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/13.55pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The undersigned
agrees that: (1) the undersigned will not offer, sell, transfer or otherwise dispose of any Shares unless either (a) a registration
statement, or post-effective amendment thereto, covering the Shares has been filed with the Securities and Exchange Commission
pursuant to the Securities Act of 1933, as amended (the &ldquo;Act&rdquo;), such sale, transfer or other disposition is accompanied
by a prospectus meeting the requirements of Section 10 of the Act forming a part of such registration statement, or post-effective
amendment thereto, which is in effect under the Act covering the Shares to be so sold, transferred or otherwise disposed of, and
all applicable state securities laws have been complied with, or (b) counsel reasonably satisfactory to Envision Solar International,
Inc. has rendered an opinion in writing and addressed to Envision Solar International, Inc. that such proposed offer, sale, transfer
or other disposition of the Shares is exempt from the provisions of Section 5 of the Act in view of the circumstances of such proposed
offer, sale, transfer or other disposition; (2) Envision Solar International, Inc. may notify the transfer agent for the Shares
that the certificates for the Shares acquired by the undersigned are not to be transferred unless the transfer agent receives advice
from Envision Solar International, Inc. that one or both of the conditions referred to in (1)(a) and (1)(b) above have been satisfied;
and (3) Envision Solar International, Inc. may affix the legend set forth in Section 3 of this Warrant to the certificates for
the Shares hereby subscribed for, if such legend is applicable.</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 12pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 19%">Dated:</TD>
    <TD STYLE="width: 29%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 21%; text-align: right; vertical-align: middle">Signed:</TD>
    <TD STYLE="width: 31%; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Signature</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>guaranteed:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: middle">Address:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>


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