Document:

Exhibit 10.5

 

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;

 

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(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.

 

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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.

 

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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.

 

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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.

 

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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 6.0% per year.

 

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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: 626-578-9063

 

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 September 30, 2012.

 

 

	 	 	VIASPACE, Inc.,
	 	  	a Nevada corporation
	 		
	 	By:	/s/ Carl Kukkonen
		 	 
	 	 	[Printed Name and Title}
	 	 	 

 

 

 

 

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SCHEDULE 1

 

EXISTING LIENS

 

 

 

 

 

 

 

    	8Exhibit 10.6

 

MUTUAL AND LIMITED RELEASE

AGREEMENT

 

THIS MUTUAL AND
LIMITED RELEASE (the “Agreement”) is entered into and made effective as of the 30th day of September 2012 (the
“Effective Date”) by and among the signatories to this Agreement (each of the signatories shall be referred to singularly
as a “Party” and collectively as the “Parties”). Except as otherwise defined herein, capitalized terms
and phrases shall have the meaning ascribed thereto in Section 2 of this Agreement.

 

BACKGROUND

 

On or about the 10th day of May 2010, VIASPACE
issued to Sung Chang a long-term debt instrument in the principal amount of $5,331,025 (the “Original Secured Note”),
the payment of which is secured by the Security Documents. Since its original issuance, the Original Secured Note was amended by
the parties to extend the due date for payment of each respective installment by one year (together with such amendment, the “Secured
Note”), with the first installment being due and payable thereafter on May 14, 2012 (the “First Installment”).
As part of such amendment, the Secured Note was assigned by Sung Chang to Changs, LLC (“Changs”).

 

The First Installment remains unpaid, along
with the Accrued Interest. Neither VIASPACE nor any one of its various subsidiaries, including VGE or its two lower tier subsidiaries,
has the financial wherewithal to satisfy the Secured Note as and to the extent due and owing. Given the insolvency of VIASPACE
on a consolidated basis, Changs, in lieu of exercising its remedies, has expressed a desire to cooperate in the recapitalization
of VIASPACE and VGE upon the terms and conditions described in that certain agreement entitled “Recapitalization Agreement
(the “Recapitalization”).

 

As a prelude to the Recapitalization, each
of the Parties entered into that term sheet entitled “TERM SHEET- VIASPACE & VGE RECAPITALIZATION,” dated as of
the 24th day of July 2012 (the “Recap Term Sheet”), pursuant to which the Parties expressed their desire
to negotiate, inter alia, a mutual release in connection with the Recapitalization.

 

NOW, THEREFORE, pursuant to the
Recap Term Sheet and in consideration of other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each of the Parties agree as follows:

 

AGREEMENT

 

1.              
Limited Mutual Releases by and Among All Parties.

 

1.1           
The Release. Except for Claims relating to the Excluded Obligations (which by definition are not included within
the meaning of the released Claims), each of the Parties, for and on behalf of itself and, as applicable, each of its shareholders,
partners or members, as the case may be, hereby and forever releases and discharges (each, a “Releasing Party”) each
of the other Parties and each shareholder, officer, director, employee, Affiliate, successor and assign thereof (collectively,
the “Released Parties”) from any and all Claims (the “Release”).

 

1.2           
Covenant Not to Sue. The Release shall constitute a complete release of the Claims and waiver of and a covenant not
to sue under or in connection with any and all such Claims, and each of the Releasing Parties shall be deemed to have fully, finally,
and forever settled, discharged, released, waived, and abandoned any and all such Claims any one or all of such Parties may have
had or may have, and the Release shall in all respects and in any event and in all cases be deemed to release each of the Released
Parties from any injury, damage, liability, responsibility, or obligation all or any one of the Releasing Parties may have suffered
or incurred for, as a result of, with respect to or in connection with such Claims.

 

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1.3           
Waiver of Unknown Claims. In furtherance of the above-stated intention to bar each and every Claim, except as otherwise
agreed in this Agreement, each Releasing Party hereby expressly waives any and all rights or benefits conferred by the provisions
of section 1542 of the California Civil Code (“Section 1542”), and by any similar provision of California, other state
or federal law now in effect or in effect in the future, and expressly consent that this Agreement shall be given full force and
effect according to each and all of its express terms and conditions, including those relating to unknown and unsuspected Claims
specified above, if any. Section 1542 provides:

 

A general
release does not extend to the claims which the creditor does not know or suspect to exist in his favor at the time of executing
a release, which if known by him must have materially affected his settlement with the debtor.

 

The release by each Releasing
Party (when and as effective) in this Section shall extend to all unknown claims within the meaning of Section 1542 relating in
any way to each of the Released Parties and, as applicable, each respective shareholder, officer, director, Affiliate, successor
and assign thereof.

 

1.4           
Informed Release. Each Releasing Party acknowledges that it understands the significance and potential consequences
of the release of unknown claims and of the specific waiver of its rights under Section 1542. Except as otherwise agreed in this
Agreement, each Releasing Party intends that the Claims released by it under this Agreement shall be construed as broadly as possible.

 

2.              
Definitions. For purposes of this Agreement,
the following terms and phrases shall have the meaning ascribed thereto:

 

“Affiliate”
means, with respect to any party to this Agreement, a Person, directly or indirectly, as of or following the Effective Date, that
controls, is controlled by or is under common control with such party. For purposes of this definition, “control” shall
mean beneficial ownership (direct or indirect) of more than 50% of the outstanding voting stock or other voting rights entitled
to elect directors (or in the case of an entity that is not a corporation the election or appointment of the corresponding managing
authority); provided, however, that in any country where the local law shall not permit foreign equity participation
of more than 50%, then an “Affiliate,” shall further include any company in which such Person shall own or control,
directly or indirectly, the maximum percentage of such outstanding stock or voting rights permitted by local law or otherwise exercises
control over the management of such company.

 

“Assignment
Agreement” shall mean that certain agreement entitled “Delivery, Disclosure, Assignment and Assumption Agreement,”
and entered into by and among VGE, VIASPACE and each of the Former Employees as of the _ day of August 2012.

 

“Claim”
shall mean any and all causes of action, actions, affirmative defenses, judgments, liens, indebtedness, obligations, damages, losses,
claims, liabilities and demands of every kind and character, whether known or unknown, suspected or unsuspected, existing or prospective,
from the beginning of time through and including the Effective Date, including, without limitation, any and all claims, including
claims based on, arising under or otherwise relating to the Civil Rights Act of 1964, the Employee Retirement Income Security Act
of 1974 , the Americans with Disabilities Act, the Vietnam Era Veterans Readjustment Act, all other federal or state statutes regulating
military service leaves, and all amendments thereof or any other relevant or potentially applicable state and federal statutes;
past wages or salaries, emotional distress, personal injuries or damages, disability insurance or other benefits (except vested
retirement benefits), violation of any express or implied agreement, written or verbal, and any common law duty, including claims
for attorney fees; provided, however, that in no event shall the term “Claim” include any Excluded Obligations.

 

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“Excluded
Obligations” shall mean each of the following matters:

 

(i)             
This Agreement;

 

(ii)           
Each of the Former Employee’s Statements of Additional Terms and Conditions; provided, however, that
each of the Parties to each such respective agreement hereby agree that Sections 2(c) and (d) thereof following the date of this
Agreement shall have no applicability to the performance of services for and on behalf of VIASPACE so long as each such employee
thereunder enters into with VIASPACE and executes as an employee of VIASPACE the Business Protection Agreement, a form of which
is attached hereto;

 

(iii)         
The Assignment Agreement; the Recapitalization Agreement; License Agreement; that certain Lock Up Agreement (as defined
in the Recapitalization Agreement); those certain agreements entitled “Consulting Agreement” and “Business Protection
Agreement” entered into by and between Stephen Muzi and VGE; those certain agreements entitled “Business Protection
Agreements” to be entered into by and between VIASPACE and each of Stephen Muzi and Carl Kukkonen, respectively; that certain
agreement entitled “Loan Agreement” to be entered into by and between Kevin Schewe, MD and VIASPACE and the Promissory
Note and Security Agreement relating thereto; [that certain initial VIASPACE Purchase Order]; that certain agreement entitled “Agreement
to Grant Voting Rights and Transfer Preferred Share” entered into by and between Sung H. Chang and Schewe, along with that
certain Exhibit A attached thereto, all of which documents being entered into of even date herewith (other than the Assignment
Agreement);

 

(iv)         
The Note and Security Documents (as defined in the Recapitalization Agreement), provided, however, that any
and all claims under the Note and related Security Documents shall be subject to and limited by the Covenant not to Sue (as defined
in the Recapitalization Agreement);

 

(v)           
The Registration Rights Agreement, dated as of May 14, 2010, and entered into by and between VIASPACE and Sung Hsien Chang;
provided, however, that upon any exercise of the demand registration rights described therein, Chang shall be responsible
for the payment of the costs to register the shares subject to such exercise by him that would not otherwise be incurred by VIASPACE
in its usual course of business (e.g., Chang will not be responsible for costs of audit fees for any such audit that may otherwise
be conducted); provided, further, that Chang (nor any transferees of such shares) may not sell during any calendar
quarter more than the greater of either (1) two and one half (2.5) times the volume limitation pursuant to Rule 144(e) promulgated
under the Securities Act of 1933, as amended, or (2) forty million (40,000,000) shares (as adjusted for any stock splits, stock
dividends, recapitalizations, combinations and the like) of all such shares that are to be registered pursuant to his demand registration
rights, without the prior written consent of VIASPACE, which consent shall not be unreasonably delayed, denied, conditioned or
withheld (the “Trickle Out”); provided, further, that such Trickle Out does not otherwise undermine or
adversely affect the effectiveness of such Registration Statement;

 

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(vi)         
The Registration Rights Agreement, dated as of May 14, 2010, and entered into by and among VGE, Sung Hsien Chang, Hsiu Fen
Su, Chun Hao Chang, Jay Chang, each individual residents of the State of Georgia, and Green Solutions Group Ltd, a British Virgin
Islands company;

 

(vii)       
Sections 5.1 through 5.6, and 5.7.4 and the rights associated therewith of the Share Purchase Agreement, dated as of the
__ day of April 2010, entered into by VIASPACE and Sung Chang, as amended;

 

(viii)     
VIASPACE’s obligation to satisfy the accrued vacation pay earned through the Closing by each of the Former Employees
in connection with the performance of employment services for and on behalf of VIASPACE and VGE prior to and through such Closing;

 

(ix)         
Claims for which a Released Party is not lawfully permitted to release (the “Preserved Claims”); provided,
however, that to the extent that any such Preserved Claims are asserted against any Chang Indemnified Party, then notwithstanding
any provision in this Agreement to the contrary, this Agreement and the Covenant Not to Sue (as defined in the Recapitalization
Agreement) shall be and become null and void with respect to any such affected Chang Indemnified Party;

 

(x)           
VGE’s obligation to satisfy the accrued vacation pay earned through the Closing by Sung Chang in connection with the
performance of employment services for and on behalf of VGE prior to and through such Closing; and

 

(xi)         
The independent contractor agreement to be entered into by and between VGE and Stephen Muzi (“Muzi”) for the
performance by him of certain Chief Financial Officer and Secretarial services for and on behalf of VGE from the effective date
of the Recap Term Sheet until November 15, 2012 at $5,000 per month (in order to file the second quarter and third quarter SEC
10-Q's) and for such longer period as the parties may mutually agree and that certain Business Protection Agreement entered into
of even date therewith by and between VGE and Muzi (the “Muzi Agreement”).

 

“Expired
Employment Agreements” shall mean those certain employment agreements entered into by and between VGE and each of the Former
Employees and made effective as of the __ day of August 2010.

 

“Former
Employees” shall mean Carl Kukkonen and Steve Muzi.

 

“License
Agreement” shall mean that certain license agreement entered into as of the Effective Date by and between VGE and VIASPACE
with respect to the license of certain rights in and to Giant King Grass (as defined therein).

 

    	4

    	 	

    
 

“Statement of Additional Terms
and Conditions” shall mean that certain addendum entitled “Statement of Additional Terms and Conditions Relating to
Employment Agreement,” which statement was attached to and made a part of each of the Expired Employment Agreements.

 

3.              
Release-Related Covenants. Each of the Parties hereby agrees that he or it, as the case may be:

 

3.1           
No Admission. Acknowledges and agrees that neither anything in this Release nor the offer, execution, delivery, or
acceptance thereof shall be construed as an admission by such Party of any kind, and this Release shall not be admissible as evidence
in any proceeding; this Release does not constitute an adjudication or finding on the merits and is not, and shall not be construed
as, an admission by any such Party of any violation of its policies, procedures, state or federal laws or regulations; this Release
may be introduced, however, in any proceeding to enforce its terms and conditions; provided, however, that any such
introduction shall be pursuant to an order protecting its confidentiality.

 

3.2           
Covenant Not to Sue. Shall never institute any action for suit-at-law or action against all or any of the Released
Parties, nor institute, prosecute, or in any way aid in the institution or prosecution of any Claim for damages, costs, loss of
services, expenses, or compensation for or on account of any damage, loss or injury, either to person or property or both, whether
developed or undeveloped, resulting to or to result, known or unknown, past, present, or future, arising out of any Claim that
has been released under this Agreement.

 

3.3           
Non-disparagement. Shall neither disparage nor denigrate the reputation, name or goodwill of any Released Party in
any communication, verbal or written, with any third-party, commencing with and following the Effective Date.

 

4.              
Employment Related Covenants.

 

4.1           
Release of Any Age Discrimination Claim. In compliance with the requirements of the Age Discrimination in Employment
Act (ADEA), as amended by the Older Workers’ Benefit Protection Act (OWBPA), each of the Former Employees and Sung Chang
(“Prior Officers”) hereby acknowledges by his/her signature below that, with respect to the rights and claims waived
and released under the ADEA and OWBPA:

 

(a)            
Prior Officer has read and understands this Agreement;

 

(b)           
Prior Officer was given at least 21 days from the date this Agreement was initially presented to accept the terms
of this Agreement;

 

(c)            
Prior Officer was advised in writing, via this Agreement, to consult with an attorney before signing this Agreement;

 

(d)           
Prior Officer had an opportunity to consult with an attorney before signing this Agreement;

 

(e)            
Prior Officer is releasing the each of the Released Parties from, among other things, any claims of age discrimination
under the ADEA or OWBPA; and

 

(f)            
Prior Officer understands that the release of age discrimination claims contained in this Agreement does not cover
any rights or claims that may arise after the Effective Date against each of the Released Parties.

 

    	5

    	 	

    
 

4.2           
Revocation of Age Release. Prior Officer may revoke the portion of this Agreement relating to release of age discrimination
claims covered by the ADEA or OWBPA within seven (7) calendar days after signing it. To be effective, such revocation must be received
in writing by VIASPACE Green Energy, 131 Bells Ferry Lane, Marietta, GA 30066. Revocation can be made by hand delivery, telegram,
facsimile, or postmarking before the expiration date of this seven (7) day period.

 

5.              
Representations and Warranties.

 

5.1           
Warranty of Authority. Each Party whose signature appears below represents and warrants
to each other Party that he or it, as the case may be, has been duly authorized and has full authority to execute this Agreement
on behalf of himself and the entity or entities for which he represents.

 

5.2           
No Assignment of Claims to Third Parties. Each of the Parties hereby represents and warrants
to each other Party that he or it, as the case may be, has not assigned or transferred, or purported to assign or transfer, to
any Person any Claim released under this Agreement.

 

5.3           
No Other Representations and Warranties. No Party has relied on any representations, whether
oral or written, not expressly set forth herein when entering into this Agreement.

 

6.              
Miscellaneous.

 

6.1           
Entire Agreement. This Agreement constitutes and contains the final, complete and exclusive
agreement and understanding between the Parties. This Agreement supersedes or replaces all prior negotiations and all agreements,
proposed or otherwise, whether written or oral, concerning the subject matter hereof. This is a fully integrated document.

 

6.2           
Severability. If any portion of this Agreement or application thereof is held invalid,
the invalidity shall not affect other provisions of this Agreement that can be given effect without the invalid provision or application
and, to this end, the provisions of this Agreement are declared to be severable. 

 

6.3           
Construction. Each Party has cooperated in the drafting and preparation of this Agreement.
Hence, this Agreement shall not be construed against any Party on the basis that said Party was the drafter of this Agreement.
The headings are for the convenience of the Parties and are not to be used in construing the meaning of any provision of this Agreement.

 

6.4           
No Waiver of Breach. No waiver by one Party of any breach of any term or provision of
this Agreement by the other Party shall be binding unless in writing and signed by the Party waiving the breach.

 

6.5           
Legal Advice. The Parties acknowledge that they have been advised by their own legal counsel
in connection with this Agreement and enter into this Agreement solely on the basis of that advice and on their own independent
investigation of all facts, law and circumstances material to this Agreement or any provision thereof. The Parties hereby acknowledge
that they have not entered into this Agreement based upon any statement or omission by the other party, their agents, representatives,
or attorneys.

 

6.6           
Binding Effect. Each of the Parties understands and expressly agrees that this Agreement
shall bind their successors and assigns.

 

    	6

    	 	

    
 

6.7           
Notices. All notices, consents, waivers and other communications under this Agreement must be in writing and will
be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by telecopier (with
written confirmation of receipt), or (c) when received by the addressee, if sent by a nationally recognized overnight delivery
service (receipt requested), in each case to the appropriate addresses and telecopier numbers set forth below (or to such other
addresses and telecopier numbers as a party may designate by written notice to the other parties):

 

If to VIASPACE:

 

VIASPACE Inc.

2102 Business Center Drive

Irvine, CA 92612

Telephone: 626-768-3360

Facsimile: 626-578-9063

 

With a copy to:

_________________________________

_________________________________

_________________________________

 

If to VGE: 

 

Mr. Sung Chang

VIASPACE Green Energy Inc.

131 Bells Ferry Lane

Marietta, Georgia 30066

With a copy to:

 

McDaniel Law Group, PC

P.O. Box 681235

Marietta, Georgia 30068

Attn: Mr. Frank McDaniel, Esq.

 

6.8           
Jurisdiction and Venue. As between the Parties, the transactions contemplated in this Agreement shall be governed
as to validity, interpretation, construction, effect, and in all other respects by the laws of the State of Georgia, without regard
to the conflicts of laws principals thereof. Each of the Parties irrevocably submits to the exclusive jurisdiction of the courts
of the State of Georgia located in the County of Cobb and the United States District Court in and for the Northern District of
Georgia for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby and thereby. Each of the Parties hereto irrevocably consents to the jurisdiction of any such court in any such
suit, action or proceeding and to the laying of venue in such court. Each of the Parties hereto irrevocably waives any objection
to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any
such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN
CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

    	7

    	 	

    
 

6.9           
Costs and Attorneys’ Fees.

 

(a)            
Award to Prevailing Party in Proceeding. In the event any attorney is employed by any Party to this Agreement with regard
to any legal action, arbitration or other proceeding brought by any Party to this Agreement for the enforcement of this Agreement,
or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Agreement,
then the prevailing Party, whether at trial or upon appeal, and in addition to any other relief to which the prevailing Party may
be granted, shall be entitled to recover from the losing Party all costs, expenses, and a reasonable sum for attorney fees incurred
by the prevailing Party in bringing or defending such action, arbitration, or proceeding, and in enforcing any judgment granted
therein, all of which costs, expenses and attorneys fees shall be deemed to have accrued upon the commencement of such action and
shall be paid whether or not such action is prosecuted to judgment.

 

(b)           
Judgment or Order Shall Award. Any judgment or order entered in such matter shall contain a specific provision providing
for the recovery by the prevailing Party of attorney fees, costs, and expenses incurred in enforcing such judgment. For purposes
of this Section, attorney fees shall include, without limitation, fees incurred in the following: post-judgment motions; contempt
proceedings; garnishment, levy, and debtor and third party examinations; discovery; and bankruptcy litigation.

 

6.10        
Further Assurances. Each of the Parties agrees (a) to furnish upon request to the other Party other such further
information, (b) to execute and deliver to the other Parties such other documents, and (c) to do such other acts and things, all
as any other Party may reasonably request for the purpose of carrying out the intent of this Agreement.

 

6.11        
Counterparts. This Agreement may be executed in counterparts, each of which, when executed,
shall be an original, and all of which together shall constitute one and the same agreement. The signatories may execute this Agreement
by facsimile counterparts, and a legible facsimile of a signature shall be as effective as an original signature.

 

6.12        
Remedies. No remedy conferred by this Agreement is intended to be exclusive of any other remedy and each remedy shall
be cumulative and in addition to every other remedy conferred hereunder or at law or in equity.

 

    	8

    	 	

    
 

 

IN WITNESS WHEREOF,
upon and coincident with the Effective Date, this Agreement shall become effective.

 

	
        VIASPACE Inc.

        

        

        By:/s/ Carl Kukkonen                    

        Print Name:

        Title:

        Date

        Signed: ________
	 	
        VIASPACE Green Energy Inc.

        

        

        By: /s/ Sung Chang                          

        Print Name:

        Title:

        Date Signed: ________

	 	 	 
	
        /s/ Carl
Kukkonen                     

        Carl Kukkonen
	 	
        /s/ Sung
Chang                            

        Sung Hsien Chang

	 	 	 
	
        /s/ Steve Muzi                         

        Steve Muzi
	 	
        /s/ Chun
Hao Chang                    

        Chun Hao Chang

	 	 	 
	
        /s/ Kevin
Schewe                       

        Kevin Schewe, MD
	 	
        /s/ Hsiu Fen Su                         

        Hsiu Fen Su

	 	 	 
	 	 	
        Changs, LLC

        By:/s/ Sung Chang                       

        Sung Hsien Chang

        Authorized Member

	 	 	 
	 	 	
        JJ International, Inc.

        By:/s/ Sung Chang                     

        Sung Hsien Chang

        Authorized Officer

	 	 	 
	 	 	
        Green Solutions Group
        Ltd., a British Virgin Islands company

        By:/s/ Sung
Chang                     

        Sung Hsien Chang

        Authorized Officer

 

 

 

    	9

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