Document:

EX-10.1

EX. 10.1

LOAN AGREEMENT

THIS LOAN AGREEMENT (this “Agreement”), is executed as of January 25, 2016, by and
between VIASPACE Inc., a Nevada corporation (the “Company”), and Kevin Schewe, an
individual (the “Lender”).

WHEREAS, the Company and the Lender entered into a prior Loan Agreement in which the Lender
agreed to loan up to $1,000,000 and the Lender has funded the entire loan amount under such
Agreement;

WHEREAS, in order to fund the Company’s operations for the near future, the Company wishes to
borrow up to an additional $300,000 from the Lender as a secured convertible note (“Aggregate
Loan Limit”); and

WHEREAS, the Lender is willing to provide such financing on terms and conditions as set forth
herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Lender, intending to be legally bound, agree as follows:

ARTICLE 1

DEFINITIONS

1.1 Defined terms. Certain capitalized terms used in this Agreement shall have the
specific meanings defined below:

“Additional Loan Closing Date” shall mean the date upon which any Additional Loan is
made to the Company.

“Business Day” shall mean a day other than a Saturday, Sunday, or other day on which
commercial banks are authorized or required by law to close.

“Initial Loan Closing Date” shall mean the date upon which the Initial Loan is made to
the Company.

“Interest Rate” shall mean eight percent (8%) per annum.

“Maturity Date” shall mean the first anniversary of the date of the issuance of the
Note.

“Principal Market” shall be the principal trading exchange or market on which the
Company’s Common Stock is traded, including without limitation, American Stock Exchange, Nasdaq
Capital Market, Nasdaq Global Market, Nasdaq Global Select Market, Bulletin Board, or New York
Stock Exchange.

“Average Closing Price” shall mean the average closing price of the Common Stock on the
principal trading exchange on which the Company’s Common Stock is traded.

ARTICLE 2

THE LOANS

2.1 Initial Loan. According to the terms and subject to the conditions of this
Agreement, the Lender shall make a single-installment loan to the Company on the Initial Loan
Closing Date in an amount determined by Lender in his sole discretion (the “Initial Loan”),
and may advance additional Loans, upon the Company’s request and accordance with the terms set
forth in Section 2.2, in the amount up to $300,000 less the amount of the Initial Loan (the
"Additional Loans”) (the Initial Loan and the Additional Loan, if any, shall be referred to
collectively as the “Loans”). The Loans shall be each evidenced by a secured convertible
promissory note in the form attached hereto as Exhibit A (“Note”), duly executed on
behalf of the Company and dated as of the Initial Loan Closing Date. The Note shall be
convertible, upon Lender’s request, into shares of Company common stock at a price per share equal
to twenty percent (20%) of the Average Closing Price as reported by the principal trading exchange
on which the Company’s Common Stock is traded for the twenty (20) trading days preceding the date
of the Note.

2.2 Additional Loans. Provided there is no Event of Default under this Agreement and
within sixty (12) months of this Agreement, the Company may notify the Lender in writing at any
time after 30 days from the most recent Closing Date that the Company after reviewing its working
capital requirements and its annual budget with its Board of Directors, has determined that it
needs to borrow an Additional Loan. Subject to the conditions set forth in Section 3.2, the Lender
may make the Loan, which shall be no less than $5,000 per Additional Loan, within 15 days of the
request for the Additional Loan but after the conditions in Article 3 have been satisfied. Each
Additional Loan shall be evidenced by a Note, duly executed on behalf of the Company and dated as
of each Additional Loan Closing Date. The aggregate amount of the Loans under the Initial Loan and
the Additional Loans shall not exceed the Aggregate Loan Amount.

2.3 Interest. The Loan shall bear interest (“Interest”) from the date of
payment by the Lender until the Maturity Date at the Interest Rate (calculated on the basis of the
actual number of days elapsed over a year of 360 days). Interest is payable by the Company on a
monthly basis in arrears on the first Business Day of the month.

2.4 Prepayment of the Loan. The Company may from time to time prepay all or any
portion of the Loan without premium or penalty of any type. The Company shall give the Lender at
least three Business Days’ prior written notice of its intention to prepay the Loan, specifying the
date of payment and the total amount of the Loan to be paid on such date.

2.5 Maturity Date. The Loan shall be due on the applicable Maturity Date.

2.6 Use of Proceeds. The proceeds of the Loan shall be used for working capital
purposes of the Company related to general operations and also including the commercialization of
the Giant King Grass business.

ARTICLE 3

CONDITIONS PRECEDENT TO THE LOAN

3.1 Conditions on the Initial Loan Closing Date. The obligation of the Lender to make
the Initial Loan pursuant to Section 2.1 shall be subject to the satisfaction, on or before the
Initial Loan Closing Date, of the conditions set forth in this Section. If the conditions set
forth in this Section are not met on or prior to the Initial Loan Closing Date, the Lender shall
have no obligation to make the Initial Loan.

(a) The Company shall have duly executed and delivered to the Lender the Note representing the
Initial Loan.

(b) The Company shall have duly authorized, executed, and delivered to the Lender a security
agreement in the form attached hereto as Exhibit B (the “Security Agreement”) to
secure the repayment of each Loan and granting the Lender a continuing security interest in all
presently existing and hereafter acquired assets and property of the Company.

3.2 Conditions on the Additional Loan Closing Date. The obligation of the Lender to
make the Additional Loan(s) pursuant to Section 2.2 shall be subject to the satisfaction, on or
before the date on which such Loan is made, of the conditions set forth in this Section. If the
conditions set forth in this Section are not met on or prior to such date, the Lender shall have no
obligation to make the Additional Loan.

(a) The Company shall have duly executed and delivered to the Lender the Note representing the
Additional Loan.

(b) The Company shall have used the proceeds from prior Loans and allocated resources in a
manner that is reasonably satisfactory to the Lender.

(c) In the Lender’s sole opinion, neither the Lender’s financial condition shall have suffered
a material adverse effect nor his other financial commitments or obligations shall have materially
increased.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

4.1 Due Incorporation and Good Standing. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Nevada, with full and adequate
power to carry on and conduct its business as presently conducted, and is duly licensed or
qualified in all foreign jurisdictions wherein the failure to be so qualified or licensed would
reasonably be expected to have a material adverse effect on the business of the Company.

4.2 Due Authorization. The Company has full right, power and authority to enter into
this Agreement, to make the borrowings hereunder and execute and deliver the Note as provided
herein and to perform all of its duties and obligations under this Agreement and the Note.

4.3 Enforceability. This Agreement has been validly executed and delivered by the
Company and constitutes the legal, valid and binding obligations of the Company enforceable against
it in accordance with its respective terms, subject to applicable bankruptcy, insolvency,
reorganization or similar laws relating to or affecting the enforcement of creditors’ right and to
the availability of the remedy of specific performance.

ARTICLE 5

DEFAULT

5.1 Events of Default. The occurrence of any of the following events (each an
“Event of Default”), not cured in the applicable cure period, if any, shall constitute and
Event of Default of the Company:

(a) the failure to make when due any payment described in this Agreement or the Note, whether
on or after the Maturity Date, by acceleration or otherwise; and

(b) (i) the application for the appointment of a receiver or custodian for the Company or the
property of the Company, (ii) the entry of an order for relief or the filing of a petition by or
against the Company under the provisions of any bankruptcy or insolvency law, (iii) any assignment
for the benefit of creditors by or against the Company, or (iv) the Company becomes insolvent.

5.2 Effect of Default. Upon the occurrence of any Event of Default that is not cured
within any applicable cure period, the Lender may elect, by written notice delivered to the
Company, to take any or all of the following actions: (i) declare this Agreement terminated and the
outstanding amounts under the Note to be forthwith due and payable, whereupon the entire unpaid
Loan, together with accrued and unpaid Interest thereon, and all other cash obligations hereunder,
shall become forthwith due and payable, without presentment, demand, protest or any other notice of
any kind, all of which are hereby expressly waived by the Company, anything contained herein or in
any of the Note to the contrary notwithstanding, and (ii) exercise any and all other remedies
provided hereunder or available at law or in equity upon the occurrence and continuation of an
Event of Default. In addition, during the occurrence of any Event of Default, the Company shall
not pay make any payment on any other outstanding indebtedness of the Company (other than
indebtedness of the Company to which the Lender has agreed in writing to subordinate this Agreement
and the Note hereunder).

ARTICLE 6

MISCELLANEOUS

6.1 Successors and Assigns. Subject to the exceptions specifically set forth in this
Agreement, the terms and conditions of this Agreement shall inure to the benefit of and be binding
upon the respective executors, administrators, heirs, successors and assigns of the parties. This
Agreement may be assigned solely by the Lender.

6.2 Titles and Subtitles. The titles and subtitles of the Sections of this Agreement
are used for convenience only and shall not be considered in construing or interpreting this
agreement.

6.3 Notices. Any notice, request or other communication required or permitted
hereunder shall be in writing and shall be delivered personally or by facsimile (receipt confirmed
electronically) or shall be sent by a reputable express delivery service or by certified mail,
postage prepaid with return receipt requested, addressed as follows:

if to the Company, to:

	 
	VIASPACE Inc.
382 N. Lemon Ave., Suite 364
Walnut, CA 91789
Attn:Chief Executive Officer
Fax:(888) 965-9407

	if to the Lender, to:

	 

	 	 	 	 	 
	Kevin Schewe

	380 Fillmore St.

	Denver, CO
	 	 	80206	 
	Fax:
	 	 	(720) 420-3301	 

Either party hereto may change the above specified recipient or mailing address by notice to the
other party given in the manner herein prescribed. All notices shall be deemed given on the day
when actually delivered as provided above (if delivered personally or by facsimile, provided that
any such facsimile is received during regular business hours at the recipient’s location) or on the
day shown on the return receipt (if delivered by mail or delivery service).

6.4 Governing Law. This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of Colorado without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of Colorado or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of Colorado.

6.5 Waiver and Amendment. Any term of this Agreement may be amended, waived or
modified with the written consent of the Company and the Lender.

6.6 Remedies. No delay or omission by the Lender in exercising any of its rights,
remedies, powers or privileges hereunder or at law or in equity and no course of dealing between
the Lender and the undersigned or any other person shall be deemed a waiver by the Lender of any
such rights, remedies, powers or privileges, even if such delay or omission is continuous or
repeated, nor shall any single or partial exercise of any right, remedy, power or privilege
preclude any other or further exercise thereof by the Lender or the exercise of any other right,
remedy, power or privilege by the Lender. The rights and remedies of the Lender described herein
shall be cumulative and not restrictive of any other rights or remedies available under any other
instrument, at law or in equity.

• * * * *

IN WITNESS WHEREOF, the Company has caused this Loan Agreement to be signed in its name on the
date first set forth above.

VIASPACE INC.

	 	 	 
	By:
	 	/S/ HARIS BASIT—

Haris Basit

Chief Executive Officer

KEVIN SCHEWE

/S/ HARIS BASIT—

EXHIBIT A

SECURED CONVERTIBLE PROMISSORY NOTE

See attached.

EXHIBIT B

SECURITY AGREEMENT

See attached.EX-10.2

EX. 10.2

SECURITY AGREEMENT

1. GRANT OF SECURITY INTEREST. To secure the payment of all present and future
indebtedness of VIASPACE, Inc., a Nevada corporation (“Debtor”) to Kevin Schewe (“Schewe”)
evidenced by one of more promissory notes (the “Notes”) issued in connection with that Loan
Agreement made by Debtor and Schewe and payable to the order of Schewe as specified in the Notes
(the “Indebtedness”), and as a condition to the closing of each Note made by Debtor to Schewe,
Debtor hereby grants and transfers to Schewe a first priority security interest in all of the
following property of Schewe (collectively, the “Collateral”):

(a) all accounts, deposit accounts, contract rights, chattel paper, instruments,
documents, general intangibles and other rights to payment of every kind now existing or at
any time hereafter arising;

(b) all inventory, goods held for sale or lease or to be furnished under contracts for
service, or goods so leased or furnished, raw materials, component parts, work in process
and other materials used or consumed in Debtor’s business, now or at any time hereafter
owned or acquired by Debtor, wherever located, and all products thereof, whether in the
possession of Debtor, any warehousemen, any bailee or any other person or entity, or in
process of delivery, and whether located at Debtor’s place of business or elsewhere;

(c) all warehouse receipts, bills of sale, bills of lading and other documents of every
kind (whether or not negotiable) in which Debtor now has or at any time hereafter acquires
any interest, and all additions and accessions thereto, whether in the possession or custody
of Debtor, any bailee or any other person or entity for any purpose;

(d) all right, title and interest of Debtor under licenses, guaranties, warranties,
management agreements, marketing or sales agreements, escrow contracts, indemnity
agreements, insurance policies, service agreements, maintenance agreements and other similar
contracts of every kind in which Debtor now has or at any time hereafter shall have an
interest;

(e) all of Debtor’s goods, tools, machinery, furnishings, furniture and other equipment
and fixtures of every kind now existing or hereafter acquired, and improvements,
replacements, accessions and additions thereto, wherever located, including without
limitation, any of the foregoing now or at any time hereafter located at or installed on the
land or in the improvements at any of the real property owned or leased by Debtor, and all
such goods after they have been severed and removed from any of said real property; and

(f) all of Debtor’s motor vehicles, trailers, mobile homes, boats, other rolling stock
and related equipment of every kind now existing or hereafter acquired and all additions and
accessories thereto, whether located on any property owned or leased by Debtor or elsewhere;

(g) all present and future general intangibles, all tax refunds of every kind of nature
to which Debtor now or hereafter may become entitled, however arising, all other refunds,
and all deposits, goodwill, choses in action, trade secrets, computer programs, software,
customer lists, trademarks, trade names, patents, licenses, copyrights, technology,
processes, proprietary information and insurance proceeds relating to or arising out of its
business;

(h) all present and future books and records, including, without limitation, books of
account and ledgers of every kind and nature, all electronically recorded data relating to
Debtor or the business thereof, all receptacles and containers for such records, and all
files and correspondence relating to or arising out of its business;

(i) all present and future accessions, appurtenances, components, repairs, repair
parts, spare parts, replacements, substitutions, additions, issue and/or improvements to or
of or with respect to any of the foregoing;

(j) all other tangible and intangible property of Debtor relating to or arising out of
the Collateral, including but not limited to the name “Debtor Circuits”;

(k) all rights, remedies, powers and/or privileges of Debtor with respect to any of the
foregoing; and

together with whatever is receivable or received when any of the foregoing or the proceeds thereof
are sold, leased, collected, exchanged or otherwise disposed of, whether such disposition is
voluntary or involuntary, including without limitation, all rights to payment, including without
limitation returned premiums, with respect to any insurance relating to any of the foregoing, and
all rights to payment with respect to any cause of action affecting or relating to any of the
foregoing (collectively, “Proceeds”).

2. TERMINATION. This Agreement shall terminate and be of no further force and effect
upon the indefeasible payment in full of the Indebtedness, and Schewe shall promptly upon the
request of Debtor execute any and all termination statements and other instruments reasonably
necessary to terminate and release the security interests in the Collateral created hereunder.

3. WAIVER OF STATUTE OF LIMITATIONS; REINSTATEMENT OF LIABILITY. Debtor acknowledges
that this Agreement is absolute and unconditional, there are no conditions precedent to the
effectiveness of this Agreement, and this Agreement is in full force and effect and is binding on
Debtor as of the date written below, regardless of whether Schewe obtains collateral or any
guaranties from others or takes any other action contemplated by Debtor. Debtor waives the benefit
of any statute of limitations affecting its liability hereunder or the enforcement thereof and
agrees that any payment of any Indebtedness or other act which shall toll any statute of
limitations applicable thereto shall similarly operate to toll such statute of limitations
applicable to its liability hereunder.

4. REPRESENTATIONS AND WARRANTIES. Debtor represents and warrants to Schewe
that:  (a) Debtor is the Debtor and has possession or control of the Collateral and Proceeds;
(b) Debtor has the right to grant a security interest in the Collateral and Proceeds; (c) all
Collateral and Proceeds are genuine, free from liens, adverse claims, setoffs, default, prepayment,
defenses and conditions precedent of any kind or character, except the lien created hereby, or as
heretofore disclosed by Debtor to Schewe in writing pursuant to Schedule 1; (d) all
statements contained herein and, where applicable, in the Collateral are true and complete in all
material respects; (e) where Collateral consists of rights to payment, all persons or entities
appearing to be obligated on the Collateral and Proceeds have authority and capacity to contract
and are bound as they appear to be, all property subject to chattel paper has been properly
registered and filed in compliance with law and to perfect the interest of the applicable Debtor in
such property, and all such Collateral and Proceeds comply with all applicable laws concerning
form, content and manner of preparation and execution, including where applicable federal and any
state consumer credit laws; and (f) where the Collateral consists of equipment, Debtor is not in
the business of selling goods of the kind included within such Collateral, and Debtor acknowledges
that no sale of any such Collateral, including without limitation any such Collateral which the
applicable Debtor may deem to be surplus, has been consented to or acquiesced in by Schewe, except
as specifically set forth in writing by Schewe.

5. COVENANTS OF DEBTOR.

(a) Debtor agrees in general:  (i) to indemnify Schewe against all losses, claims,
demands, liabilities and expenses of every kind caused by property subject hereto; (ii) to
pay all costs and expenses, including without limitation reasonable attorneys’ fees and
costs, incurred by Schewe in the perfection and preservation of the Collateral or Schewe’s
interest therein and/or the realization, enforcement and exercise of Schewe’s rights, powers
and remedies hereunder; (iii) to permit Schewe to exercise its powers; (iv) to execute and
deliver such documents as Schewe deems necessary to create, perfect and continue the
security interests contemplated hereby; and (v) not to change Debtor’s chief executive
office or the places where Debtor keeps any of the Collateral or any of Debtor’s records
concerning the Collateral and Proceeds without first giving Schewe written notice of the
address to which Debtor is moving same.

(b) Debtor agrees with regard to the Collateral and Proceeds, unless Schewe agrees
otherwise in writing:  (i) where applicable, to insure the Collateral with Schewe as loss
payee, in form, substance and amounts, under agreements, against risks and liabilities, and
with insurance companies reasonably satisfactory to Schewe; (ii) where applicable, to
operate the Collateral in accordance with all applicable statutes, rules and regulations
relating to the use and control thereof, and not to use any Collateral for any unlawful
purpose or in any way that would void any insurance required to be carried in connection
therewith; (iii) not to remove the Collateral from Debtor’s premises, except (A) for
deliveries to buyers in the ordinary course of Debtor’s business and (B) Collateral which
consists of mobile goods as defined in the California Uniform Commercial Code, in which case
Debtor agrees not to remove or permit the removal of such Collateral from its state of
domicile for a period in excess of thirty (30) calendar days; (iv) to pay prior to
delinquency all license fees, registration fees and other charges in connection with any
Collateral; (v) to permit Schewe to inspect the Collateral at any reasonable time; (vi) to
keep complete and accurate records regarding all Collateral and Proceeds, and to permit
Schewe to inspect the same and make copies thereof at any reasonable time; (vii) after the
occurrence and during the continuance of any Event of Default, if requested by Schewe, to
receive and use reasonable diligence to collect Collateral consisting of accounts and other
rights to payment and Proceeds, in trust and as the property of Schewe, and to immediately
endorse as appropriate and deliver such Collateral and Proceeds to Schewe daily in the exact
form in which they are received together with a collection report in form satisfactory to
Schewe; (viii) not to commingle Collateral or Proceeds, or collections thereunder, with
other property; (ix) to give only normal allowances and credits and to advise Schewe thereof
immediately in writing if they affect any rights to payment or Proceeds in any material
respect; (x) from time to time, when requested by Schewe, to prepare and deliver a schedule
of all Collateral and Proceeds subject to this Agreement and after the occurrence and during
the continuance of any Event of Default, to assign in writing and deliver to Schewe all
accounts, contracts, leases and other chattel paper, instruments, documents and other
evidences thereof; (xi) after the occurrence and during the continuance of any Event of
Default, in the event Schewe elects to receive payments of rights to payment or Proceeds
hereunder, to pay all expenses incurred by Schewe in connection therewith, including without
limitation expenses of accounting, correspondence, collection efforts, reporting to account
or contract debtors, filing, recording, record keeping and expenses incidental thereto; and
(xii) to provide any service and do any other acts which may be reasonably necessary to
maintain, preserve and protect all Collateral and, as appropriate and applicable, to keep
all Collateral in good and saleable condition, to deal with the Collateral in accordance
with the standards and practices adhered to generally by users and manufacturers of like
property, and to keep all Collateral and Proceeds free and clear of all defenses, rights of
offset and counterclaims.

6. POWERS OF SCHEWE. Debtor appoints Schewe its true attorney in fact to perform any
of the following powers, which are coupled with an interest, are irrevocable until termination of
this Agreement and may be exercised from time to time by Schewe’s agents, or any of them, whether
or not Debtor is in default:  (a) to perform any obligation of Debtor’s hereunder in Debtor’s name
or otherwise which Debtor has failed to perform after reasonable notice or after the occurrence and
during the continuance of any Event of Default; (b) to give notice to account debtors or others of
Schewe’s rights in the Collateral and Proceeds, and after the occurrence and during the continuance
of an Event of Default (as defined below) to enforce the same and make extension agreements with
respect thereto; (c) after the occurrence and during the continuance of any Event of Default, to
release persons or entities liable on Collateral or Proceeds and to give receipts and acquittances
and compromise disputes in connection therewith; (d) after the occurrence and during the
continuance of any Event of Default, to release security; (e) after the occurrence and during the
continuance of any Event of Default, to resort to security in any order; (f) to prepare, execute,
file, record or deliver notes, assignments, schedules, designation statements, financing
statements, continuation statements, termination statements, statements of assignment, applications
for registration or like papers to perfect, preserve or release Schewe’s interest in the Collateral
and Proceeds; (g) after the occurrence and during the continuance of an Event of Default, to
receive, open and read mail addressed to Debtor; (h) to take cash, instruments for the payment of
money and other property to which Schewe is entitled; (i) to verify facts concerning the Collateral
and Proceeds by inquiry of obligors thereon, or otherwise, in its own name or a fictitious name;
(j) after the occurrence and during the continuance of an Event of Default, to endorse, collect,
deliver and receive payment under instruments for the payment of money constituting or relating to
Proceeds; (k) to prepare, adjust, execute, deliver and receive payment under insurance claims, and
to collect and receive payment of and endorse any instrument in payment of loss or returned
premiums or any other insurance refund or return, and to apply such amounts received by Schewe, at
Schewe’s sole option, toward repayment of the Indebtedness or replacement of the Collateral;
(1) after the occurrence and during the continuance of an Event of Default, to exercise all rights,
powers and remedies which Debtor would have, but for this Agreement, with respect to all Collateral
and Proceeds subject hereto; (m) at reasonable times to enter onto Debtor’s premises in inspecting
the Collateral; (n) after the occurrence and during the continuance of an Event of Default, to make
withdrawals from and to close deposit accounts or other accounts with any financial institution,
wherever located, into which Proceeds may have been deposited, and to apply funds so withdrawn to
payment of the Indebtedness; (o) to preserve or release the interest evidenced by chattel paper to
which Schewe is entitled hereunder and to endorse and deliver evidences of title incidental
thereto; and (p) to do all acts and things and execute all documents in the name of Debtor or
otherwise, deemed by Schewe as necessary, proper and convenient in connection with the
preservation, perfection or enforcement of his rights hereunder.

7. PAYMENT OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Debtor agrees to pay,
prior to delinquency, all insurance premiums, taxes, charges, liens and assessments against the
Collateral and Proceeds, and upon the failure of Debtor to do so, Schewe at its option may pay any
of them and shall be the sole judge of the legality or validity thereof and the amount necessary to
discharge the same. Any such payments made by Schewe shall be obligations of Debtor to Schewe, due
and payable immediately upon demand, together with interest at a rate of 10% per year, and shall be
secured by the Collateral and Proceeds, subject to all terms and conditions of this Agreement.

8. EVENTS OF DEFAULT. The occurrence of any of the following shall constitute an
"Event of Default” under this Agreement:  (a) any event defined as an Event of Default,
under the Note, subject to any applicable grace or cure rights; (b) any representation or warranty
made by Debtor herein shall prove to be incorrect in any material respect when made; or (c) Debtor
shall fail to observe or perform any obligation or agreement contained herein and fail to cure any
such default within thirty (30) days after written notice thereof from Schewe.

9. REMEDIES. Upon the occurrence of any Event of Default, Schewe shall have, and may
exercise without demand, any and all rights, powers, privileges and remedies granted to a secured
party upon default under the California Uniform Commercial Code or otherwise provided by law,
including without limitation the right to contact all persons or entities obligated to Debtor on
any Collateral or Proceeds and to instruct such persons or entities to deliver all Collateral
and/or Proceeds directly to Schewe. All rights, powers, privileges and remedies of Schewe shall be
cumulative. No delay, failure or discontinuance of Schewe in exercising any right, power,
privilege or remedy hereunder shall affect or operate as a waiver of such right, power, privilege
or remedy; nor shall any single or partial exercise of any such right, power, privilege or remedy
preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any
other right, power, privilege or remedy. Any waiver, permit, consent or approval of any kind by
Schewe of any default hereunder, or any such waiver of any provisions or conditions hereof, must be
in writing and shall be effective only to the extent set forth in writing. It is agreed that
public or private sales, for cash or on credit, to a wholesaler or retailer or investor, or user of
property of the types subject to this Agreement, or public auction, are all commercially reasonable
since differences in the sales prices generally realized in the different kinds of sales are
ordinarily offset by the differences in the costs and credit risks of such sales. While an Event
of Default exists:  (a) Debtor will deliver to Schewe from time to time, as requested by Schewe,
current lists of all Collateral and Proceeds in its possession; (b) Debtor will not dispose of any
of the Collateral or Proceeds (other than inventory sold to third parties in the ordinary course of
business) except on terms approved by Schewe; (c) at Schewe’s request, Debtor will assemble and
deliver all Collateral and Proceeds, and books and records pertaining thereto, to Schewe at a
reasonably convenient place designated by Schewe; and (d) Schewe may, without notice to any Debtor,
enter onto each Debtor’s premises and take possession of the Collateral. With respect to any sale
by Schewe of any Collateral subject to this Agreement, Debtor hereby expressly grants to Schewe the
right to sell such Collateral using any or all of Debtor’s trademarks, trade names, trade name
rights and/or proprietary labels or marks.

10. DISPOSITION OF COLLATERAL AND PROCEEDS. Any proceeds of any disposition of any of
the Collateral or Proceeds, or any part thereof, occurring after the occurrence of any Event of
Default, may be applied by Schewe to the payment of expenses incurred by Schewe in connection with
such disposition, including without limitation reasonable attorneys’ fees and costs, and the
balance of such proceeds may be applied by Schewe toward the payment of the Indebtedness in such
order of application as Schewe may from time to time elect.

11. NOTICES. All notices, requests and demands required under this Agreement must be
in writing, addressed each party at the address set forth under the Loan Agreement or to such other
address as either party may designate by written notice to the other party, and shall be deemed to
have been given or made as follows:  (a) if personally delivered, upon delivery; (b) if sent by
mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S. mail,
first class and postage prepaid; and (c) if sent by email, upon receipt.

12. COSTS, EXPENSES AND ATTORNEYS’ FEES. Debtor shall pay to Schewe promptly upon
demand (and in any event within 10 days of demand) the full amount of all payments, advances,
charges, costs and expenses, including without limitation reasonable attorneys’ fees and costs,
expended or incurred by Schewe in exercising any right, power, privilege or remedy conferred by
this Agreement or in the enforcement thereof, whether incurred at the trial or appellate level, in
an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection
with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested
matter or motion brought by Schewe or any other person or entity) relating to Debtor or in any way
affecting any of the Collateral or Proceeds or Schewe’s ability to exercise any of its rights or
remedies with respect thereto. All of the foregoing shall be paid by Debtor with interest from the
date of demand until paid in full at the rate of 10.0% per year.

13. SUCCESSORS. This Agreement shall be binding upon and inure to the benefit of the
heirs, executors, administrators, legal representatives, successors and assigns of the parties.

14. AMENDMENT. This Agreement may be amended or modified only in a writing signed by
Schewe and Debtor.

15. SEVERABILITY OF PROVISIONS. If any provision of this Agreement is held to be
prohibited by or invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
any remaining provisions of this Agreement.

16.  GOVERNING LAW AND CONSENT TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. DEBTOR HEREBY CONSENTS, AND
SUBMITS, TO THE PERSONAL JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN THE STATE OF
CALIFORNIA IN CONNECTION WITH ANY LEGAL ACTION RELATING TO THIS AGREEMENT AND WAIVES ANY RIGHT IT
MIGHT HAVE IN CONNECTION WITH SUCH ACTION TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO
OBJECT TO VENUE.

Debtor warrants that its chief executive office is located at the following address:

VIASPACE, Inc.

382 N. Lemon Ave., Suite 364

Walnut, CA 91789

Telephone: 626-768-3360

Facsimile: 888-965-9407

Debtor warrants that the Collateral (except goods in transit) is located or domiciled at the
address set forth for above or at one of the addresses set forth below:  

	 	 	 	1)

	 	 	 	2)

IN WITNESS WHEREOF, this Agreement has been duly executed as of January 25, 2016.

	 	 	 
	By:
	 	VIASPACE, Inc.,

a Nevada corporation

/S/ HARIS BASIT

Haris Basit, CEO

[Printed Name and Title]SCHEDULE 1

EXISTING LIENS

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