Document:

Crossroads Capital, Inc. 8-K

 

Exhibit 10.1

 

 

LIQUIDATING TRUST AGREEMENT

THIS LIQUIDATING
TRUST AGREEMENT (this “Agreement”) is dated as of June 23, 2017 (the “Effective Date”), by and among
Crossroads Capital, Inc. (the ”Company”), and Andrew Dakos, Phillip Goldstein and Gerald Hellerman (collectively,
and including any successors thereto, the “Trustees”).

RECITALS

WHEREAS, the
Company has elected to be treated as a business development company under the Investment Company Act of 1940, as amended;

WHEREAS, the
Board of Directors of the Company (“Board”) has determined that it is in the best interest of the Company to convert
the Company into a Maryland statutory trust (the ”Conversion”) and liquidate the Company’s presently owned
assets in a liquidating trust;

WHEREAS, the
statutory trust (the “Trust”) to be created by the filing of the Articles of Conversion (as hereinafter defined) and
a Certificate of Trust (as hereinafter defined) with the State Department of Assessments and Taxation of the State of Maryland
under Section 12-204 of the Maryland Statutory Trust Act (the “Maryland Act”) is intended to be such liquidating trust,
with the Trustees serving as the initial trustees; and

WHEREAS, following
the Conversion, the Trustees shall administer the Trust pursuant to the terms of this Agreement in order to liquidate the Trust
Assets and, upon satisfaction of all related liabilities and obligations, to distribute the residue of the proceeds of the liquidation
in accordance with the terms hereof.

NOW, THEREFORE,
in consideration of the premises and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

Article
I

NAMES; DEFINITIONS; PRINCIPAL OFFICE; RESIDENT AGENT

1.1       

Name. The Trust
shall be known as “Crossroads Liquidating Trust”.

1.2       

Defined Terms.
Terms used but not otherwise defined in this Agreement shall be defined as follows unless the context otherwise requires:

(a)       

“Administrator”
means 1100 Capital Consulting, LLC, or such other person selected by the Trustees to act as successor to the duties of 1100 Capital
Consulting, LLC.

(b)       

“Affiliate”
means an “affiliated person” as defined in the Investment Company Act of 1940, as amended.

(c)       

“Agreement”
shall mean this instrument as originally executed or as it may from time to time be amended pursuant to the terms hereof.

(d)       

“Articles
of Conversion” shall mean the articles of conversion in form and substance as Annex A attached hereto.

    	 		 

    	 

    

 

(e)       

“Beneficial
Interest” shall mean each Beneficiary’s proportionate share of the Trust Assets determined by the ratio of the number
of Units held by such Beneficiary to the total number of Units held by all Beneficiaries.

(f)       

“Beneficiary”
shall mean each holder of Units.

(g)       

“Certificate
of Trust” shall mean the certificate of trust in form and substance as Annex B attached hereto.

(h)       

“Code”
shall have the meaning given to such term in Section 2.2(c).

(i)       

“Commission”
shall have the meaning given to such term in Section 5.8(b).

(j)       

“Conversion
Date” shall mean the date of the effectiveness of the Articles of Conversion and Certificate of Trust when filed with the
State of Maryland under the Maryland Act.

(k)       

“Independent
Trustees” means Andrew Dakos, Phillip Goldstein, and Gerald Hellerman, and any successor thereto the Trustees deem in their
good-faith determination to not have a relationship with the Trust that would interfere with the exercise of independent judgement
in carrying out the responsibility of an Independent Trustee.

(l)       

“Liabilities”
shall mean all taxes, tax audits and any findings arising from, in connection with or relating thereto, liens, penalties, interest,
costs and expenses, unsatisfied debts, damages, losses, claims, liabilities, commitments, suits and any other obligations, whether
contingent or fixed or otherwise.

(m)       

“NBC Trust
Company” shall mean NBC Trust Company, a Nebraska chartered trust company, or such other person selected by the Trustees
to act as successor to the duties of NBC Trust Company.

(n)       

“Person”
shall mean an individual, a corporation, a partnership, an association, a joint stock company, a limited liability company, a trust,
a joint venture, any unincorporated organization, or a government or political subdivision thereof.

(o)       

“Plan”
shall mean that Plan of Liquidation approved by the Company’s Board of Directors on May 3, 2016.

(p)       

“Shares”
shall mean the shares of common stock, $0.0001 par value per share, of the Company.

(q)       

“Stockholders”
shall mean the holders of record of the outstanding Shares of the Company immediately prior to the effective time of the Articles
of Conversion and Certificate of Trust when filed with the State of Maryland under the Maryland Act.

(r)       

“Trust
Assets” shall mean all the property (real, personal, tangible or intangible) held from time to time by the Trust and administered
by the Trustees under this Agreement.

    	 	2	 

    	 

    

(s)       

“Trust
Subsidiary” means any corporation, partnership, limited liability company, joint venture, business trust, real estate investment
trust or other organization, whether incorporated or unincorporated, or other legal entity directly owned by the Trust.

(t)       

“Units”
shall have the meaning given to such term in Section 3.1(a).

1.3       

Principal Office
in State of Maryland; Resident Agent; Additional Offices. The principal office of the Trust in the State of Maryland shall
be located at such place as the Trustees may designate. The address of the principal office of the Trust in the State of Maryland
as of the Conversion Date is 351 West Camden Street, Baltimore, MD 21201. The name and address of the resident agent of the Trust
in the State of Maryland are The Corporation Trust Incorporated, 351 West Camden Street. Baltimore, MD 21201. The resident agent
is a Maryland corporation. The Trust may have additional offices, including a principal executive office, at such places as the
Trustees may from time to time determine or the business of the Trust may require.

1.4       

Governing Instrument.
This Agreement is intended to be a “governing instrument” under 12-207 of the Maryland Act.

Article
II

NATURE OF THE TRUST

2.1       

Conversion; Creation
of Trust. The Trust shall be established upon the Conversion Date, which shall occur upon the effectiveness of the filing of
the Articles of Conversion and the Certificate of Trust with the state of Maryland.

2.2       

Purpose of Trust.

(a)       

The Trust is
organized for the sole purpose of liquidating and distributing the proceeds of Trust Assets and in connection therewith to own,
administer and realize the value of the Trust Assets for the ultimate purpose of liquidating the Trust Assets and distributing
the net proceeds of the Trust Assets, with no objective to continue or engage in the conduct of a trade or business, except as
necessary for the orderly liquidation of, and preservation or realization of the value of, the Trust Assets.

(b)       

In connection
with the foregoing, the Trustees will (i) take such actions as they deem necessary or appropriate to carry out the purpose
of the Trust and facilitate such ownership, administration, realization and liquidation of the Trust Assets, (ii) protect,
conserve and manage the Trust Assets in accordance with the terms and conditions hereof, and (iii) distribute the net proceeds
of the Trust Assets in accordance with the terms and conditions hereof.

(c)       

It is intended
that, for federal, state and local income tax purposes, the Trust shall be treated as a liquidating trust under Treasury Regulation
Section 301.7701-4(d) and any analogous provision of state or local law, and the Beneficiaries shall be treated as the owners of
their respective share of the Trust pursuant to Sections 671 through 679 of the Internal Revenue Code of 1986, as amended (the
“Code”) and any analogous provision of state or local law, and shall be taxed on their respective share of the Trust’s
taxable income (including both ordinary income and capital gains) pursuant to Section 671 of the Code and any analogous provision
of state or local law. The Trustees shall file all tax returns required to be filed with any governmental agency consistent with
this position, including, but not limited to, any returns required of grantor trusts pursuant to Treasury Regulation Section 1.671-4(a).

    	 	3	 

    	 

    

2.3       

Payment of Liabilities
of the Trustees. If any Liability is asserted against any Trustee as a result of the Conversion, such Trustee may use such
part of the Trust Assets as may be necessary in contesting any such Liability or in payment thereof, and in no event shall such
Trustee, Beneficiaries, officers of the Trust or any subsidiary of the Trust, manager, the Administrator or agents of the Trust
be personally liable, nor shall resort be had to the private property of such Persons, in the event that the Trust Assets are not
sufficient to satisfy the Liabilities of the Trust.

2.4       

Management of Subsidiaries.

(a)       

Subject to the
terms of any agreements governing the management and operation of any Trust Subsidiary, including without limitation with respect
to obligations of the directors, officers, managers, partners or members of any such entity to act in the best interests of the
Trust Subsidiary and the equity holders, partners or members of such Trust Subsidiary, the Trustees shall take such actions with
respect to the Trust’s direct or indirect interest in each Trust Subsidiary (whether in connection with the Trust’s
position as direct or indirect equity owner, partner, member or manager, or as a director, officer, employee or agent of such Trust
Subsidiary), and shall, subject to any obligations to any other equity owners, partners or members of a Trust Subsidiary, take
all commercially reasonable steps to cause each Trust Subsidiary to take such actions, as are consistent with the purposes and
provisions of the Trust and this Agreement.

(b)       

The Trustees
shall, to the extent not done on or prior to the Conversion Date, and to the extent within their reasonable power and deemed necessary
or desirable by the Trustees, amend, or cause to be amended, the operating agreements and other governing documents of each Trust
Subsidiary and take such other action to provide that the purpose of such entity is substantially the same as that set forth in
Section 2.2, including no objective to continue or engage in the conduct of a trade or business (other than as necessary
to realize or preserve the value of its assets) and the expeditious but orderly disposition and distribution of its assets; provided
that it shall not be inconsistent with the provisions of this paragraph for any Trust Subsidiary to continue to engage in a trade
or business following such time as the Trust has sold all of its interests in such Trust Subsidiary in furtherance of the Plan.

(c)       

The Trustees
shall do what they can to cause each Trust Subsidiary to distribute to the Trust and to such Trust Subsidiary’s other equity
owners, partners or members, if any, in accordance with the governing documents of such Trust Subsidiary, on or before each distribution
provided for in Section 5.6 and Section 5.7 such portion of its cash as is deemed necessary by the Trustees to make
such distribution pursuant to Section 5.6 or Section 5.7.

(d)       

The Trustees
may serve as partner, member, director, officer, employee or agent of a Trust Subsidiary.

    	 	4	 

    	 

    

2.5       

Management Services
Agreements.

(a)       

Concurrently
with the Conversion, the Trust will enter into a management services agreement with the Administrator to assist in the sale of
the Trust Assets, to provide oversight, reporting and administrative services, and such other matters as the parties may agree,
in each case on such terms and conditions as may be approved by the Trustees; provided that such services will not overlap with
the services provided by NBC Trust Company.

(b)       

Concurrently
with the Conversion, the Trust will enter into a management services agreement with NBC Trust Company to provide oversight, reporting
and administrative services, and such other matters as the parties may agree, in each case on such terms and conditions as may
be approved by the Trustees; provided that such services will not overlap with the services provided by the Administrator.

Article
III

BENEFICIAL INTERESTS

3.1       

Beneficial Interests.

(a)       

Pursuant to the
Plan, effective upon the Conversion, each outstanding Share shall convert into one unit of uncertificated Beneficial Interest (a
“Unit”) in the Trust for each Share then held of record by such Stockholder. Effective upon the Conversion, each Beneficiary
shall have a pro rata undivided beneficial interest in the Trust Assets equal to the number of Units owned by such Beneficiary
divided by the total number of Units owned by all Beneficiaries.

(b)       

The rights of
Beneficiaries in, to and under the Trust Assets and the Trust shall not be represented by any form of certificate or other instrument,
and no Beneficiary shall be entitled to such a certificate. The Trustees shall maintain, or cause to be maintained, a record of
the name and address of each Beneficiary and the aggregate number of Units held by such Beneficiary.

(c)       

If any conflicting
claims or demands are made or asserted with respect to the ownership of any Units, or if there is any disagreement between the
transferees, assignees, heirs, representatives or legatees succeeding to all or part of the interest of any Beneficiary resulting
in adverse claims or demands being made in connection with such Units, then, in any of such events, the Trustees shall be entitled,
at their sole election, to refuse to comply with any such conflicting claims or demands. In so refusing, the Trustees may elect
to make no payment or distribution with respect to such Units, or to make such payment to a court of competent jurisdiction or
an escrow agent, and in so doing, the Trustees shall not be or become liable to any of such parties for their failure or refusal
to comply with any of such conflicting claims or demands or to take any other action with respect thereto, nor shall the Trustees
be liable for interest on any funds which it may so withhold. Notwithstanding anything to the contrary set forth in this Section
3.1(c), the Trustees shall be entitled to refrain and refuse to act until either (i) the rights of the adverse claimants
have been adjudicated by a final judgment of a court of competent jurisdiction, (ii) all differences have been adjusted by
valid written agreement between all of such parties, and the Trustees shall have been furnished with an executed counterpart of
such agreement, or (iii) there is furnished to the Trustees a surety bond or other security satisfactory to the Trustees,
as they shall deem appropriate, to fully indemnify the Trustees as between all conflicting claims or demands.

    	 	5	 

    	 

    

3.2       

Rights of Beneficiaries.
Each Beneficiary shall be entitled to participate in the rights and benefits due to such Beneficiary hereunder according to the
Beneficiary’s Beneficial Interest. Each Beneficiary shall take and hold the same subject to all the terms and provisions
of this Agreement. The interest of each Beneficiary hereunder is declared, and shall be in all respects, personal property and
upon the death of an individual Beneficiary, the Beneficiary’s Beneficial Interest shall pass as personal property to the
Beneficiary’s legal representative and such death shall in no way terminate or affect the validity of this Agreement; provided,
however, the Trustees or their agents shall not be obligated to book a transfer of a deceased Beneficiary’s Beneficial Interest
to his or her legal representative until the Trustees shall have received Letters Testamentary or Letters of Administration and
written notice of the death of the deceased Beneficiary. A Beneficiary shall have no title to, right to, possession of, management
of, or control of, any of the Trust Assets except the right to receive distributions of the net proceeds thereof as, when, and
if made as expressly provided herein. No widower, widow, heir or devisee of any person who may be a Beneficiary shall have any
right of dower, homestead, or inheritance, or of partition, or of any other right, statutory or otherwise, in any of the Trust
Assets.

3.3       

Limitations on Transfer.
The beneficial interest of a beneficiary may not be transferred other than by will, intestate succession or operation of law; provided
that the executor or administrator of the estate of a Beneficiary may mortgage, pledge, grant a security interest in, hypothecate
or otherwise encumber, the Beneficial Interest held by the estate of such Beneficiary if necessary in order to borrow money to
pay estate, succession or inheritance taxes or the expenses of administering the estate of the Beneficiary, upon written notice
to and upon written consent of the Trustees, which consent may be withheld in the Trustees’ sole discretion. Units shall
not be listed on any exchange or quoted on any quotation system. Neither the Trustees, any Beneficiary nor any employees or agents
of the Trustees, if any, may take any action to facilitate or encourage the sale or transfer of any Beneficial Interests, except
as permitted in this Section. Furthermore, except as may be otherwise required by law, the Beneficial Interests of the Beneficiaries
hereunder shall not be subject to attachment, execution, sequestration or any order of a court, nor shall such interests be subject
to the contracts, debts, obligations, engagements or liabilities of any Beneficiary. The interest of a Beneficiary shall be paid
by the Trustees to the Beneficiary free and clear of all assignments, attachments, anticipations, levies, executions, decrees and
sequestrations and shall become the property of the Beneficiary only when actually received by such Beneficiary.

3.4       

Trustees as Beneficiary.
Any Trustee, either individually or in a representative or fiduciary capacity, may be a Beneficiary to the same extent as if it
were not a Trustee hereunder and shall have all rights of a Beneficiary, including, without limitation, the right to vote and to
receive distributions, to the same extent as if it were not a Trustee hereunder.

    	 	6	 

    	 

    

Article
IV

DURATION AND TERMINATION OF THE TRUST

4.1       

Duration. The
existence of the Trust shall terminate upon the earliest of (a) the liquidation and distribution of the net proceeds of all
of the Trust Assets as provided in Section 5.7, or (b) the expiration of a period of three years from the Conversion
Date. Notwithstanding the foregoing, the Trustees may continue the existence of the Trust beyond the three-year term if the Trustees
reasonably determine that an extension is necessary to fulfill the purposes of the Trust.

4.2       

Other Obligations
of Trustees upon Termination. Upon termination of the Trust, the Trustees shall provide for the retention of the books, records,
lists of holders of Units, and files which shall have been delivered to or created by the Trustees, the Administrator, or their
respective agents. At the Trustees’ discretion, all of such records and documents may be destroyed at any time after six
years following the final distribution with respect to the Trust Assets. Except as otherwise specifically provided herein, upon
the final distribution with respect to the Trust Assets, the Trustees shall have no further duties or obligations hereunder; provided,
that the Trustees shall execute and deliver such other instruments and agreements as shall be reasonably necessary or required
to effect the termination of the Trust.

Article
V

ADMINISTRATION OF TRUST ASSETS

5.1       

Sale of Trust Assets.
The Trustees shall make continuing efforts to dispose of the Trust Assets and cause each Trust Subsidiary to dispose of its assets,
to make timely distributions and to not unduly prolong the duration of the Trust. Without limiting the foregoing, and subject to
the terms and conditions of this Agreement, the Trustees may, and may cause the Trust, at such times as it deems appropriate, in
their discretion, collect, liquidate, reduce to cash, transfer, assign, or otherwise dispose of all or any part of the Trust Assets
as they deem appropriate at public auction or at private sale for cash, securities or other property, or upon credit (either secured
or unsecured as the Trustees shall determine).

5.2       

Efforts to Resolve
Claims and Liabilities. Subject to the terms and conditions of this Agreement, the Trustees shall make appropriate efforts
to resolve any contingent or unliquidated claims and outstanding contingent Liabilities for which the Trust or any Trust Subsidiary
may be responsible, administer and dispose of the Trust Assets as contemplated by this Agreement, make timely distributions to
the Beneficiaries, and not unduly prolong the duration of the Trust.

5.3       

Continued Collection
of Trust Assets. All property that is determined to be a part of the Trust Assets shall continue to be collected by the Trustees
and held as a part of the Trust. The Trustees shall hold the Trust Assets without being obligated to provide for or pay any interest
thereon to any Beneficiary, except to the extent of such Beneficiary’s share of interest actually earned by the Trust after
payment of the Trust’s liabilities and expenses as provided in Section 5.5.

5.4       

Restriction on Trust
Assets. The Trust shall not receive, or permit any Trust Subsidiary to receive, transfers of, and shall cause to be distributed,
any assets prohibited by Revenue Procedure 82-58, 1982-2 C.B. 847 (as amplified by Revenue Procedure 91-15, 1991-1 C.B. 484), as
the same may be further amended, supplemented, or modified, including, but not limited to, any listed stocks or securities, any
readily-marketable assets, any operating assets of a going business, any unlisted stock of a single issuer that represents 80%
or more of the stock of such issuer, or any general or limited partnership interest, or any interest in a limited liability that
is treated as a partnership for federal income tax purposes, it being understood that the interests in the Trust Subsidiaries do
not constitute any such assets. The Trustees shall not retain (or permit any Trust Subsidiary to retain) cash in excess of a reasonable
amount to meet expenses and Liabilities of the Trust and the Trust Assets (or the Trust Subsidiary and its assets).

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5.5       

Payment of Expenses
and Liabilities. The Trustees shall pay from the Trust Assets all expenses and Liabilities of the Trust and of the Trust Assets,
including, but not limited to, interest, penalties, taxes, assessments, and public charges of any kind or nature and the costs,
charges, and expenses connected with or growing out of the execution or administration of the Trust and such other payments and
disbursements as are provided in this Agreement or which may be determined to be a proper charge against the Trust Assets by the
Trustees.

5.6       

Interim Distributions.
At such times as may be determined in their sole discretion, but consideration of potential liquidating distributions shall occur
no less frequently than annually, and in any event within a reasonable period of time following the disposition of Trust Assets,
the Trustees shall distribute, or cause to be distributed, to the Beneficiaries, in proportion to the number of Units held by each
Beneficiary on the record date for such distribution as determined by the Trustees in their sole discretion, the net proceeds from
the disposition of Trust Assets and income from Trust investments, and such other cash or property comprising a portion the Trust
Assets as the Trustees may in their sole discretion determine may be distributed. Notwithstanding the foregoing, promptly following
the Conversion and subject to the Trustees’ final approval at the time of the Trustees’ determination, the Trustees
shall distribute, or cause to be distributed, to the Beneficiaries on the record date for such distribution, an amount of cash
of no less than $1.60 per Unit.

5.7       

Final Distribution.
If the Trustees determine that the Liabilities and all other claims, expenses, charges, and obligations of the Trust and the Trust
Subsidiaries have been paid or discharged, and all Trust Assets have been liquidated, the Trustees shall, as expeditiously as is
consistent with the conservation and protection of the Trust Assets, distribute such share to the Beneficiaries as of the record
date of such distribution, in proportion to the number of Units held by each Beneficiary.

5.8       

Reports to Beneficiaries.

(a)       

As soon as practicable
after the Conversion Date, the Trustees will mail, or will cause to be mailed, to each Beneficiary a notice indicating how many
Units such person beneficially owns and the names of Trustees and their contact information.

(b)       

As soon as practicable
after the end of each fiscal year of the Trust on a timeline as though the Trust were a non-accelerated filer of reports under
the Securities Exchange Act of 1934, as amended (the ”Exchange Act”) the Trust shall file an annual report
on Form 10-K with the U.S. Securities and Exchange Commission (the ”Commission”) showing the assets and liabilities
of the Trust at the end of the applicable calendar year and the receipts and disbursements of the Trust for such period covered
by the report. The annual report also will describe the changes in the assets of the Trust and the actions taken by the Trustees
during such period covered by the report. The financial statements contained within such annual report need not be audited but
will be prepared on a liquidation basis in accordance with generally accepted accounting principles and will be reviewed by an
independent registered public accounting firm. The Trust also will file current reports on Form 8-K with the Commission whenever
an event occurs for which a Form 8-K is required to be filed for the Trust or whenever, in the opinion of the Trustees, in their
discretion, any other material event relating to the Trust or its assets has occurred.

    	 	8	 

    	 

    

(c)       

The tax year
and the fiscal year of the Trust shall end on December 31 of each year, unless the Trustees deem it advisable to establish some
other date as the date on which the taxable year of the Trust shall end.

5.9       

Federal Income Tax
Information. As soon as practicable after the close of each tax year, the Trustees shall mail, or shall cause to be mailed,
to each Person who was a Beneficiary during such year, a statement showing, on a per Unit basis, the information necessary to enable
a Beneficiary to determine its taxable income, gain, loss or deduction (if any) attributable to the assets held by the Trust as
determined for federal income tax purposes. In addition, after receipt of a request in good faith, the Trustees shall furnish to
any Person who has been a Beneficiary at any time during the preceding year, at the expense of such Person and at no cost to the
Trust, a statement containing such further tax information as is reasonably available to the Trustees and reasonably requested
by such Person.

5.10       

Books and Records.
The Trustees shall maintain in respect of the Trust and the holders of Units books and records relating to the Trust Assets and
the income and liabilities of the Trust in such detail and for such period of time as may be necessary to enable the Trustees to
make full and proper accounting in respect thereof in accordance with this Article V and to comply with applicable law.
Such books and records shall be maintained on a basis or bases of accounting necessary to facilitate compliance with the tax reporting
requirements of the Trust and the reporting obligations of the Trustees under Section 5.8. Nothing in this Agreement requires
the Trustees to file any accounting or seek approval of any court with respect to the administration of the Trust or as a condition
for making any payment or distribution out of the Trust Assets. Beneficiaries and their agents shall be entitled, upon 30 days’
prior written notice delivered to the Trustees, to inspect and copy (at their own expense) during normal business hours the following
(and only the following) documents, solely to the extent that such documents are not publicly available on the website of the Commission:
(a) this Agreement and all amendments hereto; (b) minutes of the proceedings (if any) of the Beneficiaries; (c) an
annual statement of affairs (which may be the annual report contemplated by Section 5.8(a)); and (d) any voting trust
agreements on file at the Trust’s principal office; provided that, if so requested, such Beneficiaries shall have
entered into a confidentiality agreement satisfactory in form and substance to the Trustees.

5.11       

Appointment of Agents,
etc.

(a)       

The Trustees
shall be responsible for the general policies of the Trust and for the general supervision of the activities of the Trust and Trust
Subsidiaries conducted by all agents, officers, employees, advisors or managers of the Trust or any of the Trust Subsidiaries.
The Trustees shall have the power to appoint, employ or contract with any Person or Persons as the Trustees may deem necessary
or proper for the transaction of all or any portion of the activities of the Trust, including appointment of officers of the Trust
and the Trust Subsidiaries and the retention of the Administrator and NBC Trust Company under management services agreements, as
contemplated by Section 2.5. For purposes of this Agreement, the Administrator and NBC Trust Company shall each be deemed
to be an agent of the Trust.

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(b)       

The Trustees
shall have the power to determine the terms and compensation of any Person with whom they may contract pursuant to Section 5.11(a).

(c)       

No Trustee shall
be required to administer the Trust as its sole and exclusive function and a Trustee may have other business interests and may
engage in other activities similar or in addition to those relating to the Trust, including in competitive business interests,
including the rendering of advice or services of any kind to investors or any other Persons and the management of other investments,
subject to such Trustee’s obligations under this Agreement and applicable law.

Article
VI

BOARD OF TRUSTEES

6.1       

Board of Trustees.
The Trust and its affairs shall be governed, managed and administered by a Board of Trustees. References in this Agreement to the
“Trustees” shall constitute references to the Board of Trustees acting as described in this Article VI, unless
the context otherwise requires.

6.2       

Number and Qualification
of Trustees.

(a)       

Subject to the
provisions of Section 6.3 relating to the period pending the appointment of a successor Trustee, there shall be three Trustees
of this Trust comprising the Board of Trustees, who shall be citizens and residents of, or a corporation or other entity which
is incorporated or formed under the laws of, a state of the United States and, if a corporation, it shall be authorized to act
as a corporate fiduciary under the laws of the State of Maryland or such other jurisdiction as shall be determined by the Trustees
in their sole discretion. The number of Trustees may be increased or decreased from time to time by the Trustees, provided that
there shall never be fewer than one Trustee.

(b)       

If a corporate
Trustee shall ever change its name, or shall reorganize or reincorporate, or shall merge with or into or consolidate with any other
bank or trust company, such corporate trustee shall be deemed to be a continuing entity and shall continue to act as a trustee
hereunder with the same liabilities, duties, powers, titles, discretions, and privileges as are herein specified for a Trustee.

(c)       

A majority of
the Trustees shall qualify as Independent Trustees; provided that, if one or more Independent Trustees shall resign or be removed,
and pending the filling of the vacancy or vacancies created by such resignation or removal less than a majority of the Trustees
are Independent Trustees, the failure of a majority of the Trustees to be Independent Trustees shall not affect the validity of
any action taken by the Trustees.

6.3       

Resignation and
Removal. Any Trustee may resign and be discharged from the Trust by giving written notice to the other Trustees; provided,
that if there is only one Trustee at the time of such Trustee’s resignation, then such resigning Trustee may resign and be
discharged by making a public notice of the Beneficiaries of such resignation, which may take the form of a press release or the
filing with the Commission of a current report on Form 8-K announcing the same. Such resignation shall become effective on the
date specified in such notice. Any Trustee may be removed at any time, with or without cause, by Beneficiaries holding in the aggregate
more than two-thirds of the total Units held by all Beneficiaries at a meeting of the Beneficiaries duly called for such purpose.

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6.4       

Appointment of Successor.
If at any time a Trustee resigns or is removed, dies, becomes mentally incompetent or physically incapable of performing such Trustee’s
responsibilities hereunder (as determined by the other Trustees), or is adjudged bankrupt or insolvent, unless the remaining Trustees
(if any) shall decrease the number of Trustees comprising the Board of Trustees pursuant to Section 6.2 hereof, or in the
event the number of Trustees comprising the Board of Trustees shall be increased pursuant to Section 6.2 hereof, a vacancy
shall be deemed to exist and a successor shall be appointed by action of a majority of the remaining Trustees (if any). If (a) such
a vacancy is not filled by the remaining Trustees within ninety (90) days, and the remaining Trustees, if any, have notified the
Beneficiaries of their inability to fill such vacancy or (b) there is no remaining Trustee then, the Beneficiaries may, pursuant
to Article XII hereof, call a meeting to appoint a successor Trustee or successor Trustees. At such meeting, holders of
a majority of the outstanding Units shall constitute a quorum and a successor Trustee or successor Trustees shall be appointed
by Beneficiaries holding Units representing a majority of the total Units present at the meeting, in person or by proxy, with each
Unit being entitled to be voted with respect to each vacancy to be filled at such meeting. Pending the appointment of a successor
Trustee, the remaining Trustee or Trustees then serving may continue to take all actions that may be taken by the Trustees hereunder.

6.5       

Acceptance of Appointment
by Successor Trustee. Any successor Trustee appointed hereunder shall execute an instrument accepting such appointment hereunder
and shall file one counterpart with the books and records of the Trust and, in case of a resignation, deliver one counterpart to
the resigning Trustee. Thereupon such successor Trustee shall, without any further act, become vested with all the estates, properties,
rights, powers, trusts, and duties of its predecessor in the Trust hereunder with like effect as if originally named therein.

6.6       

Required Approval
for Action by Trustees. At any time there is more than one Trustee, all action required or permitted to be taken by the Trustees,
in their capacity as Trustees, shall be taken by approval, consent, vote or resolution, including by written consent, authorized
by at least a majority of the Trustees.

6.7       

Compensation; Expense
Reimbursement. If serving as a Trustee on the Board of Trustees, the Trustees shall be entitled to receive compensation for
their services as Trustees comparable to that paid by the Company to its independent directors prior to the filing of the Articles
of Conversion and Certificate of Trust under the Maryland Act, consisting of reasonable meeting fees or quarterly or annual retainer
fees or a combination of such fees, as determined by the Trustees. Each Trustee shall be reimbursed from the Trust Assets for all
expenses reasonably incurred, and appropriately documented, by such Trustee in the performance of that Trustee’s duties in
accordance with this Agreement.

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Article
VII

POWERS OF AND LIMITATIONS ON THE TRUSTEES

7.1       

Limitations on Trustees.
The Trustees shall not cause the Trust, and shall not cause any Trust Subsidiaries, to enter into or engage in any trade or business
except as necessary to carry out the purposes of the Trust. In no event shall the Trustees take any action which would jeopardize
the status of the Trust as a “liquidating trust” for federal, state or local income tax purposes within the meaning
of Treasury Regulation Section 301.7701-4(d) and any analogous provision of state or local law. The Trustees shall not invest any
of the cash held as Trust Assets in securities of any other Person, except that the Trustees may invest in (a) direct obligations
of the United States of America or obligations of any agency or instrumentality thereof which mature not later than one year from
the date of acquisition thereof, (b) money market deposit accounts, checking accounts, savings accounts, or certificates of
deposit, or other time deposit accounts which mature not later than one year from the date of acquisition thereof which are issued
by a commercial bank or savings institution organized under the laws of the United States of America or any state thereof, or (c) other
temporary investments not inconsistent with the Trust’s status as a liquidating trust for tax purposes.

7.2       

Specific Powers
of Trustees. Subject to the provisions of the terms and conditions of this Agreement, the Trustees shall have the following
specific powers in addition to any and all powers conferred upon them by any other section or provision of this Agreement or any
laws of the State of Maryland; provided that the enumeration of the following powers shall not be considered in any way to limit
or control the power of the Trustees to act as specifically authorized by any other section or provision of this Agreement and
to act in such a manner as the Trustees may deem necessary or appropriate to conserve and protect the Trust Assets or to confer
on the Beneficiaries the benefits intended to be conferred upon them by this Agreement:

(a)       

to determine
the nature and amount of the consideration to be received with respect to the sale or other disposition of, or the grant of interest
in, each or all of the Trust Assets;

(b)       

to collect, liquidate,
finance or refinance or otherwise convert into cash, or such other property as it deems appropriate, all property, assets and rights
in the Trust Assets, and to pay, discharge, and satisfy all other claims, expenses, charges, Liabilities and obligations existing
with respect to the Trust Assets, the Trust or the Trustees;

(c)       

to elect, appoint,
engage, retain or employ any Persons as officers, agents, representatives, employees or independent contractors (including without
limitation investment advisors, accountants, transfer agents, attorneys-at-law, managers, appraisers, brokers, consultants or otherwise)
in one or more capacities to assist in the administration, disposition, liquidation and distribution of Trust Assets, and to pay
reasonable compensation from the Trust Assets for services in as many capacities as such Person may be so appointed, engaged, employed
or retained, to prescribe the titles, powers and duties, terms of service and other terms and conditions of the election, appointment,
engagement, employment or retention of such Persons and, except as prohibited by law, to delegate any of the powers and duties
of the Trustees to officers, agents, representatives, independent contractors, employees or other Persons, including, without limitation,
the retention of the Administrator and NBC Trust Company and their respective affiliates to provide various services to the Trust
and any Trust Subsidiary consistent with the types of services and compensation terms previously applicable to the Company prior
to the formation of the Trust, plus a disposition fee with respect to the sale or other disposition of the Trust Assets;

    	 	12	 

    	 

    

(d)       

to retain and
set aside such funds out of the Trust Assets as the Trustees shall deem necessary or expedient to pay, or provide for the payment
of (i) unpaid claims, expenses, charges, Liabilities and obligations of the Trust or any Trust Subsidiaries; and (ii) the
expenses of administering the Trust Assets;

(e)       

to do and perform
any and all acts necessary or appropriate for the conservation, protection and realization of the value of the Trust Assets pending
sale or disposition thereof or distribution thereof to the Beneficiaries;

(f)       

to institute,
defend, settle or otherwise resolve actions, judgments or claims for declaratory relief or other actions, judgments or claims and
to take such other action, in the name of the Trust or any Trust Subsidiary, or as otherwise required, as the Trustees may deem
necessary or desirable to enforce any instruments, contracts, agreements, causes of action, or rights relating to or forming a
part of the Trust Assets;

(g)       

to determine
conclusively from time to time the fair value of and to revalue the securities and other property of the Trust, with the assistance
of independent valuation or other experts or other information as it deems necessary or appropriate;

(h)       

to cancel, terminate
or amend any instruments, contracts, agreements, obligations, or causes of action relating to or forming a part of the Trust Assets,
and to execute new instruments, contracts, agreements, obligations or causes of action notwithstanding that the terms of any such
instruments, contracts, agreements, obligations, or causes of action may extend beyond the terms of the Trust;

(i)       

in the event
any of the assets or property which is or may become a part of the Trust Assets is situated in any state or other jurisdiction
in which any Trustee is not qualified to act as a Trustee, to nominate and appoint an individual or corporate trustee qualified
to act in such state or other jurisdiction in connection with the assets or property situated in that state or other jurisdiction
as a trustee of such assets or property and require from such trustee such security, if any, as may be designated by the Trustees,
which, in the sole discretion of the Trustees may be paid out of the Trust Assets. The trustee so appointed shall have all the
rights, powers, privileges and duties and shall be subject to the conditions and limitations of the Trust, except as limited by
the Trustees and except where the same may be modified by the laws of such state or other jurisdiction (in which case, the laws
of the state or other jurisdiction in which such trustee is acting shall prevail to the extent necessary). Such trustee shall be
answerable to the Trustees herein appointed for all monies, assets and other property which may be received by it in connection
with the administration of such assets or property. The Trustees hereunder may remove such trustee, with or without cause, and
appoint a successor trustee at any time by the execution by the Trustees of a written instrument declaring such trustee removed
from office, and specifying the effective date of removal;

(j)       

to cause any
investments of any part of the Trust Assets to be registered and held in its name or in the names of a nominee or nominees without
increase or decrease of liability with respect thereto;

    	 	13	 

    	 

    

(k)       

to (i) terminate
and dissolve any entities owned by the Trust or any Trust Subsidiary and (ii) form any new entities to be owned by the Trust
or any Trust Subsidiary, provided that the interests in any such newly formed entities would not constitute assets prohibited
this Agreement and by Revenue Procedure 82-58, 1982-2 C.B. 847 (as amplified by Revenue Procedure 91-15, 1991-1 C.B. 484), as the
same may be further amended, supplemented, or modified;

(l)       

to perform any
act authorized, permitted, or required under any instrument, contract, agreement, right, obligation, or cause of action relating
to or forming a part of the Trust Assets whether in the nature of an approval, consent, demand, or notice thereunder or otherwise,
unless such act would require the consent of the Beneficiaries in accordance with the express provisions of this Agreement; and

(m)       

adopt Bylaws
not inconsistent with this Agreement providing for the conduct of the business of the Trust and to amend and repeal them.

7.3       

Affiliate Transactions;
Other Activities.

(a)       

The Trustees
shall not cause the Trust to enter into or engage in any transaction with an Affiliate except as otherwise would be permitted under
the Investment Company Act of 1940 (including Section 56 thereof).

(b)       

Rights of
Trustees, Employees, Independent Contractors and Agents to Own Units or Other Property and to Engage in Other Business. Any
Trustee, officer, employee, independent contractor or agent of the Trust, including the Administrator and NBC Trust Company, may
own, hold and dispose of Units for its individual account, and may exercise all rights thereof and thereunder to the same extent
and in the same manner as if it were not a Trustee, officer, employee, independent contractor or agent of the Trust. Any Trustee,
officer, employee, independent contractor or agent of the Trust, including the Administrator and NBC Trust Company, may, in its
personal capacity or in the capacity of trustee, manager, officer, director, shareholder, partner, member, advisor, employee of
any Person or otherwise, have business interests and holdings similar to or in addition to those relating to the Trust, including
business interests and holdings that are competitive with the Trust. Any Trustee, officer, employee, independent contractor or
agent of the Trust, including the Administrator and NBC Trust Company, may be a trustee, manager, officer, director, shareholder,
partner, member, advisor, employee or independent contractor of, or otherwise have a direct or indirect interest in, any Person
who may be engaged to render advice or services to the Trust, and may receive compensation from such Person as well as compensation
as a Trustee, employee, independent contractor or agent, including as manager or from the Administrator or NBC Trust Company, or
otherwise hereunder so long as such interest is disclosed to the Trustees. None of these activities in and of themselves shall
be deemed to conflict with its duties as a Trustee, officer, employee, independent contractor or agent of the Trust, including
as the Administrator or as NBC Trust Company. The doctrine of corporate opportunity, or any analogous doctrine, shall not apply
to the Trustees or officers or other agents of the Trust or the Trust Subsidiaries, including the Administrator and NBC Trust Company.
No Trustee or officer who acquires knowledge of a potential transaction, agreement, arrangement or other matter that may be an
opportunity for the Trust shall have any duty to communicate or offer such opportunity to the Trust, and such Trustee shall not
be liable to the Trust or to the Beneficiaries for breach of any fiduciary or other duty by reason of the fact that such Trustee
pursues or acquires for, or directs such opportunity to another Person or does not communicate such opportunity or information
to the Trust. Neither the Trust nor any Beneficiary shall have any rights or obligations by virtue of this Agreement or the trust
relationship created hereby in or to such independent ventures or the income or profits or losses derived therefrom, and the pursuit
of such ventures, even if competitive with the activities of the Trust, shall not be deemed wrongful or improper. Any Trustee may
engage or be interested in any financial or other transaction with the Beneficiaries or any Affiliate of the Trust or the Beneficiaries,
or may act as depositary for, trustee or agent for, or act on any committee or body of holders of, securities or other obligations
of the Trust or the Beneficiaries or their Affiliates.

    	 	14	 

    	 

    

Article
VIII

DUTIES AND LIABILITIES OF THE TRUSTEES,

BENEFICIARIES AND AGENTS; INDEMNIFICATION

8.1       

Generally. The
Trustees accept and undertake to discharge the Trust, upon the terms and conditions hereof, on behalf of the Beneficiaries. Each
Trustee shall exercise such rights and powers vested in the Trustees by this Agreement in good faith, and use the same degree of
care and skill in his, her, or its exercise as a prudent man or woman would exercise or use under the circumstances in the conduct
of his or her own affairs, and no Trustee shall have or be deemed to have any fiduciary or other duty to the Trust, any Trust Subsidiary,
any Beneficiary, any Trustee or any other Person, except for such duties as are expressly provided by this Agreement. The provisions
of this Agreement, to the extent that they restrict or otherwise limit the duties and liabilities of the Trustees otherwise existing
at law or in equity are agreed by the parties hereto to replace such other duties and liabilities of the Trustees. To the maximum
extent that Maryland law in effect from time to time permits limitation of the liability of trustees or officers of a Maryland
statutory trust, no present or former Trustee or officer or other agent of the Trust or of any Trust Subsidiary, including
the Administrator and NBC Trust Company, shall be subject to any personal liability whatsoever in tort, contract or otherwise,
to the Trust, any Beneficiary or any other Person. Neither the amendment nor repeal of this Section 8.1, nor the adoption
or amendment of any other provision of this Agreement inconsistent with this Section 8.1, shall apply to or affect in any
respect the applicability of the preceding sentence with respect to any act or failure to act which occurred prior to such amendment,
repeal or adoption. In addition, notwithstanding the foregoing:

(a)       

no successor
Trustee shall be responsible for the acts or omissions of a Trustee in office prior to the date on which such successor becomes
a Trustee;

(b)       

the Trustees
shall not be required to perform any duties or obligations except for the performance of such duties and obligations as are specifically
set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Trustees;

(c)       

in the absence
of bad faith on the part of the Trustees, the Trustees may conclusively rely, as to the truth, accuracy and completeness thereof,
on the statements and certificates or opinions furnished to the Trustees and conforming to the requirements of this Agreement;

(d)       

no Trustee shall
be liable for any act which such Trustee may do or omit to do hereunder, or for any mistake of fact or law, or for any error of
judgment, or for the misconduct of any employee, agent, representative or attorney appointed by the Trustees, or for anything that
it may do or refrain from doing in connection with this Agreement while acting in good faith; and

    	 	15	 

    	 

    

(e)       

no Trustee shall
be liable with respect to any action taken or omitted to be taken by such Trustee in accordance with (i) a written opinion
of legal counsel addressed to the Trustees or (ii) the direction of Beneficiaries having aggregate Beneficial Interests of
at least a majority of all Beneficial Interests relating to the exercise by the Trustees of any trust or power conferred upon the
Trustees under this Agreement.

8.2       

Reliance by Trustees.

(a)       

The Trustees
may consult with legal counsel, auditors or other experts to be selected by them and the advice or opinion of such counsel, auditors,
or other experts shall be full and complete personal protection to the Trustees and agents of the Trust in respect of any action
taken or suffered by the Trustees in good faith and in the reliance on, or in accordance with, such advice or opinion.

(b)       

Persons dealing
with the Trustees shall look only to the Trust Assets to satisfy any liability incurred by the Trustees to such Person in carrying
out the terms of the Trust, and the Trustees shall have no personal or individual obligation to satisfy any such liability.

(c)       

As far as reasonably
practicable, the Trustees shall cause any written instrument creating an obligation of the Trust to include a reference to this
Agreement and to provide that neither the Beneficiaries, the Trustees nor their agents shall be liable thereunder, and that the
other parties to such instrument shall look solely to the Trust Assets for the payment of any claim thereunder or the performance
thereof; provided that the omission of such provision from any such instrument shall not render the Beneficiaries, the Trustees
or their agents liable, nor shall the Trustees be liable to anyone for such omission.

8.3       

Limitation on Liability
to Third Persons. No Beneficiary shall be subject to any personal liability whatsoever, in tort, contract, or otherwise, to
any Person in connection with the Trust Assets or the affairs of the Trust. To the maximum extent that Maryland law in effect from
time to time permits limitation of the liability of trustees or officers of a Maryland statutory trust, no present or former Trustee
or officer or other agent of the Trust or of any Trust Subsidiary, including the Administrator and NBC Trust Company, shall be
subject to any personal liability whatsoever in tort, contract or otherwise, to the Trust, any Beneficiary or any other Person.
All Persons shall look solely to the Trust Assets for satisfaction of claims of any nature arising in connection with the affairs
of the Trust. The Trustees shall, at all times, at the expense of the Trust, maintain insurance for the protection of the Trust
Assets, its Beneficiaries, the Trustees and agents in such amount as the Trustees shall deem adequate, in the exercise of their
discretion, to cover all foreseeable liability to the extent available at reasonable rates. Neither the amendment nor repeal of
this Section 8.3, nor the adoption or amendment of any other provision of this Agreement inconsistent with this Section
8.3, shall apply to or affect in any respect the applicability of the preceding sentences with respect to any act or failure
to act which occurred prior to such amendment, repeal or adoption.

    	 	16	 

    	 

    

8.4       

Recitals. Any
written instrument creating an obligation of the Trust shall be conclusively taken to have been executed or done by a Trustee or
agent of the Trust only in its capacity as a Trustee under this Agreement, or in its capacity as an agent of the Trust.

8.5       

Indemnification.
The Trustees and each Person appointed or employed by the Trustees pursuant to Section 5.11, including the Administrator
and NBC Trust Company, and the directors, officers, employees, managers and agents of each Trustee (each such person an “Indemnified
Person” and collectively the “Indemnified Persons”), shall, to the fullest extent permitted by law, be indemnified
out of the Trust Assets against all claims, actions, liabilities and expenses, including amounts paid in satisfaction of judgments,
in compromise or as fines and penalties, and counsel fees, reasonably incurred by the Indemnified Persons in connection with the
defense or disposition of any action, suit or other proceeding by the Trust, the Administrator, NBC Trust Company, or any other
Person, whether civil or criminal, in which the Indemnified Person may be involved or with which the Indemnified Person may be
threatened: (a) in the case of a Trustee or a Person appointed by the Trustees pursuant to Section 5.11, including
the Administrator and NBC Trust Company, while in office or thereafter, by reason of his being or having been such a Trustee, the
Administrator, NBC Trust Company, employee or agent including, without limitation, in connection with or arising out of any action,
suit or other proceeding based on any alleged breach of duty, neglect, error, misstatement, misleading statement, omission or act
of any such Trustee, the Administrator, NBC Trust Company or Person in such capacity: and (b) in the case of any director,
officer, employee, manager or agent of any such Person, by reason of any such Person exercising or failing to exercise any right
or power hereunder. The rights accruing to any Indemnified Person under these provisions shall not exclude any other right to which
the Indemnified Person may be lawfully entitled; provided that no Indemnified Person may satisfy any right of indemnity
or reimbursement granted herein, or to which the Indemnified Person may be otherwise entitled, except out of the Trust Assets,
and no Beneficiary shall be personally liable to any person with respect to any claim for indemnity or reimbursement or otherwise.
The Trustees shall make advance payments in connection with indemnification under this Section 8.5, provided that the Indemnified
Person shall have given a written undertaking to repay any amount advanced to the Indemnified Person and to reimburse the Trust
in the event that it is subsequently determined that the Indemnified Person is not entitled to such indemnification. The Trustees
shall cause the Trust to purchase such insurance as they believe, in the exercise of their discretion, adequately insures that
each Indemnified Person shall be indemnified against any such claims, actions, liabilities and expenses pursuant to this Section
8.5, which insurance will be similar in coverage for such Indemnified Person as the Company’s Directors and Officers
insurance policy in place before the Conversion Date. Nothing contained herein shall restrict the right of the Trustees to indemnify
or reimburse such Indemnified Person in any proper case, even though not specifically provided for herein, nor shall anything contained
herein restrict the right of any such Indemnified Person to contribution under applicable law.

8.6       

Reliance on Statements
by Trustees. Any Person dealing with the Trustees shall be fully protected in relying upon a certificate of the Trustees with
respect to the authority that a Trustee, or any officer or agent of the Trust, has to take any action with respect to the Trust.
Any Person dealing with the Trustees shall be fully protected in relying upon a certificate of the Trustees setting forth the facts
concerning any action taken by a Trustee pursuant to this Agreement.

    	 	17	 

    	 

    

Article
IX

CERTAIN MATTERS CONCERNING THE BENEFICIARIES

9.1       

Evidence of Action
by Beneficiaries. Whenever in this Agreement it is provided that the Beneficiaries may take any action (including the making
of any demand or request, the giving of any notice, consent, or waiver, the removal of a Trustee, the appointment of a successor
Trustee, or the taking of any other action), the fact that at the time of taking any such action such Beneficiaries have joined
therein may be evidenced: (a) by any instrument or any number of instruments of similar tenor executed by the Beneficiaries
in person or by proxy, agent or attorney appointed in writing; or (b) by the record of the Beneficiaries voting in person
or by proxy in favor thereof at any meeting of Beneficiaries duly called and held in accordance with the provisions of Article
X.

9.2       

Limitation on Suits
by Beneficiaries. No Beneficiary shall have any right by virtue of any provision of this Agreement to institute any action
or proceeding at law or in equity against any party other than the Trustees upon or under or with respect to the Trust Assets or
the agreements relating to or forming part of the Trust Assets, and the Beneficiaries (by their acceptance of any distribution
made to them pursuant to this Agreement) waive any such right.

9.3       

Requirement of Undertaking.
The Trustees may request any court to require, and any court may in its discretion require, in any suit for the enforcement of
any right or remedy under this Agreement, or in any suit against the Trustees for any action taken or omitted to be taken by them
as Trustees, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and such court may
in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided that the provisions
of this Section 9.3 shall not apply to any suit by the Trustees.

Article
X

MEETINGS OF BENEFICIARIES

10.1       

Purpose of Meetings.
A meeting of the Beneficiaries may be called at any time and from time to time pursuant to the provisions of this Article for the
purposes of taking any action which the terms of this Agreement expressly permit Beneficiaries to take either acting alone or with
the Trustees.

10.2       

Meeting Called by
Trustees. The Trustees may at any time call a meeting of the Beneficiaries to be held at such time and at such place as the
Trustees shall determine. Written notice of any meeting of the Beneficiaries shall be given by the Trustees (except as provided
in Section 10.3), which written notice shall set forth the time and place of such meeting and in general terms the action
proposed to be taken at such meeting, and shall be mailed not more than 60 nor less than 10 days before such meeting is to be held
to all of the Beneficiaries of record not more than 60 days before the date of such meeting. The notice shall be directed to the
Beneficiaries at their respective addresses as they appear in the records of the Trust.

10.3       

Meeting Called on
Request of Beneficiaries. Within 30 days after written request to the Trustees by Beneficiaries holding an aggregate of at
least a majority of the total Units held by all Beneficiaries to call a meeting of all Beneficiaries (but only to transact business
permitted by Section 10.1 hereof), which written request shall specify in reasonable detail the action proposed to be taken,
the Trustees shall proceed under the provisions of Section 10.2 to call a meeting of the Beneficiaries.

    	 	18	 

    	 

    

10.4       

Persons Entitled
to Vote at Meeting of Beneficiaries. Each Beneficiary shall be entitled to vote at a meeting of the Beneficiaries either in
person or by his proxy duly authorized in writing. The signature of the Beneficiary on such written authorization need not be witnessed
or notarized. Each Beneficiary shall be entitled to a number of votes equal to the number of Units held by such Beneficiary as
of the applicable record date.

10.5       

Quorum; Vote Required
for Approval. Except as otherwise required by this Agreement or law, Beneficiaries holding at least the number of Units in
the aggregate sufficient to take action on any matter for which such meeting was called shall be necessary to constitute a quorum
at any meeting of Beneficiaries for the transaction of business. If less than a quorum is present, the Trustees or Beneficiaries
having aggregate Units of at least a majority of the total Units held by all Beneficiaries represented at the meeting may adjourn
such meeting with the same effect and for all intents and purposes as though a quorum had been present. Except to the extent a
different percentage is specified in this Agreement for a particular matter or is required by law, when a quorum is present, any
act requiring the approval of the Beneficiaries shall be approved by the affirmative vote of a majority of all the votes entitled
to be cast on the matter.

10.6       

Adjournment of Meeting.
Subject to Section 10.5, meeting of Beneficiaries may be adjourned from time to time and a meeting may be held at such adjourned
time and place without further notice.

10.7       

Conduct of Meetings.
The Trustees shall appoint the Chairman and the Secretary of the meeting and may adopt such rules for the conduct of such meeting
as it shall deem appropriate, provided that such rules shall not be inconsistent with the provisions of this Agreement. The vote
upon any resolution submitted to any meeting of Beneficiaries shall be by written ballot. An Inspector of Votes, appointed by the
Chairman of the meeting, shall count all votes cast at the meeting, in person or by proxy, for or against any resolution and shall
make and file with the Secretary of the meeting their verified written report. In the event that a meeting of the Beneficiaries
is held when there are no Trustees then in office, the Beneficiaries present or represented by proxy may adopt such rules for the
conduct of such meeting as they shall deem appropriate, provided that such rules shall not be inconsistent with the provisions
of this Agreement.

10.8       

Record of Meeting.
A record of the proceedings of each meeting of Beneficiaries shall be prepared by the Secretary of the meeting. The record shall
be signed and verified by the Secretary of the meeting and shall be delivered to the Trustees to be preserved by them. Any record
so signed and verified shall be conclusive evidence of all of the matters therein stated.

    	 	19	 

    	 

    

Article
XI

AMENDMENTS

11.1       

Amendments Requiring
Consent of Beneficiaries. This Agreement may be amended from time to time by the Trustees, with the approval of Beneficiaries
holding a majority of the total Units outstanding, or such greater or lesser percentage as shall be specified in this Agreement
for the taking of an action by the Beneficiaries under the affected provision of this Agreement, obtained at a meeting of the Beneficiaries
duly called for such purpose; provided that no such amendment shall increase the potential liability of the Trustees hereunder
without the written consent of the Trustees; provided, further, that no such amendment shall permit the Trustees
to engage in any activity prohibited by Section 7.1 hereof or affect the Beneficiaries’ rights to receive their pro
rata shares of the Trust Assets at the time of any distribution, and no such amendment shall, or cause the Trustees to take any
action that would, jeopardize the status of the Trust as a “liquidating trust” for federal, state, or local income
tax purposes within the meaning of Treasury Regulation Section 301.7701-4(d) and any analogous provision of state or local law
or jeopardize the Beneficiaries treatment as other than the owners of their respective shares of the Trust’s taxable income
pursuant to Section 671 through 679 of the Code and any analogous provision of state or local law.

11.2       

Amendments Not Requiring
Consent of Beneficiaries. This Agreement may be amended from time to time by the Trustees, without the consent of any of the
Beneficiaries, (a) to add to the representations, duties or obligations of the Trustees or surrender any right or power granted
to the Trustees herein; (b) to facilitate the transferability by Beneficiaries of Trust Units, subject to the ability of the
liquidating trust to remain eligible for relief from the registration and reporting requirements under the Exchange Act, (c) to
comply with applicable laws, including tax laws or to satisfy any requirements, conditions, guidelines or opinions contained in
any opinion, directive, order, ruling or regulation of the Commission, the Internal Revenue Service or any other U.S. federal or
state or non-U.S. governmental agency, compliance with which the Trustees deem to be in the best interest of the Beneficiaries
as a whole, (d) to enable the Trust to obtain no-action assurances from the staff of the Commission regarding relief from
registration and reporting requirements under the Exchange Act, which relief the Trustees deem to be in the best interest of the
Beneficiaries as a whole, (e) to enable the Trust to be treated as a liquidating trust under Treasury Regulation Section 301.7701-4(d)
and any analogous provision of state or local law, if the Trustees deem it to be in the best interests of the Beneficiaries as
a whole, or (f) to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other
provision herein, or to add any other provision with respect to matters or questions arising under this Agreement which will not
be inconsistent with the provisions of this Agreement.

11.3       

Notice and Effect
of Amendment. Upon the execution of any such declaration of amendment by the Trustees, this Agreement shall be deemed to be
modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties, and immunities
of the Trustees and the Beneficiaries under this Agreement shall thereafter be determined, exercised and enforced hereunder subject
in all respects to such modification and amendments, and all the terms and conditions of any such amendment shall thereby be deemed
to be part of the terms and conditions of this Agreement for any and all purposes.

Article
XII

MISCELLANEOUS PROVISIONS

12.1       

Filing Documents.
This Agreement shall be filed or recorded in such office or offices as the Trustees may determine to be necessary or desirable.
A copy of this Agreement and all amendments thereof shall be maintained in the principal executive office of the Trust and shall
be available at all times during regular business hours for inspection by any Beneficiary or such Beneficiary’s duly authorized
representative. The Trustees shall file or record any amendment of this Agreement in the same places where the original Agreement
is filed or recorded to the extent the Trustees may determine such filing to be necessary or desirable. The Trustees shall file
or record any instrument which relates to any change in the name or office of a Trustee in the same places where the original Agreement
is filed or recorded to the extent the Trustees may determine such filing to be necessary or desirable.

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12.2       

Intention of Parties
to Establish Trust. This Agreement is not intended to create, and shall not be interpreted as creating, a corporation, association,
partnership, or joint venture of any kind for purposes of federal income taxation or for any other purpose.

12.3       

Laws as to Construction.
This Agreement, the internal affairs of the Trust, and the liability of the Trustees as trustees, and the Beneficiaries as holders
of Beneficial Interests, for any debt, obligation, or other liability of the Trust shall be governed by and construed in accordance
with the internal laws of the State of Maryland, except to the extent that the provisions of any applicable law are permitted to
be varied by the provisions of the Agreement, in which event the provisions of this Agreement shall govern; provided that the Maryland
Act (except as varied hereby), and not the laws applicable to common law trusts, shall govern the Trust, this Agreement, and the
rights and obligations of the Trustees and the Beneficiaries. The Trustees, the Company and the Beneficiaries (by their acceptance
of any distributions made to them pursuant to this Agreement) consent and agree that this Agreement shall be governed by and construed
in accordance with such laws.

12.4       

Beneficiaries Have
No Rights or Privileges as Stockholders. Except as expressly provided in this Agreement or under applicable law, the Beneficiaries
shall have no rights or privileges as Beneficiaries attributable to their former status as Stockholder.

12.5       

Exclusive Forum
for Certain Litigation. Unless the Trustees consent in writing to the selection of an alternative forum, the Circuit Court
for Baltimore City, Maryland, or, if that Court does not have jurisdiction, the United States District Court for the District of
Maryland, Baltimore Division, shall be the sole and exclusive forum for (a) any action asserting a claim of breach of any
duty owed by any Trustee or any officer, employee, independent contractor or agent of the Trust or any Trust Subsidiary, including
the Administrator, to the Trust or any Beneficiary or such Beneficiary’s heirs or devisees or, if applicable, plan participant
or account owner, (b) any action asserting a claim against the Trust or any Trustee or any officer, employee, independent
contractor or agent of the Trust or any Trust Subsidiary, including the Administrator, pursuant to any provision of the Maryland
Statutory Trust Act or this Agreement or (c) any action asserting a claim against the Trust or any Trustee or any officer,
employee, independent contractor or agent of the Trust or any Trust Subsidiary, including the Administrator that is governed by
the internal affairs doctrine.

12.6       

Severability.
In the event any provision of this Agreement or the application thereof to any Person or circumstances shall be finally determined
by a court of proper jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement, or the application
of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected
thereby, and each provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

12.7       

Notices.

(a)       

Any notice or
other communication by the Trustees to any Beneficiary shall be in writing and shall be deemed to have been duly given for all
purposes when (i) deposited in the mail, postage prepaid, for delivery to, or deposited with a courier service for delivery
to, such Person, or (ii) delivered personally to such Person, in each case at his address as shown in the records of the Trust.

    	 	21	 

    	 

    

(b)       

All notices and
other communications under this Agreement to any party hereto shall be in writing and shall be deemed to have been duly given for
all purposes when (i) deposited in the mail, postage prepaid, for delivery to, or deposited with a courier service for delivery
to, such party, or (ii) delivered personally, in each case at the following address or at such other addresses as shall be
specified by the parties by like notice.

(A)       

If to the Trust or
the Trustees:

 

Crossroads Liquidating
Trust

128 N. 13th
Street, Suite 1100

Lincoln, Nebraska
68508

(B)       

If to the Company:

 

Crossroads Capital,
Inc.

128 N. 13th
Street, Suite 1100

Lincoln, Nebraska
68508

12.8       

Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together
constitute one and the same instrument.

 

 

 

[Signature page follows.]

 

    	 	22	 

    	 

    

 

IN WITNESS WHEREOF,
Crossroads Capital, Inc. has caused this Agreement to be executed by an authorized officer, and the Trustees herein have executed
this Agreement, effective this 23rd day of June, 2017.

 

	 	THE COMPANY:
	 	 
	 	Crossroads Capital,
Inc.
	 	 
	 	 
	 	By:	/s/ Ben H. Harris	 
	 	 	Ben H. Harris
	 	 	President and
Chief Executive Officer

 

	 	THE TRUSTEES:
	 	 
	 	 
	 	By:	/s/ Andrew Dakos	 
	 	 	Andrew Dakos
	 	 	 
	 	By:	/s/ Phillip Goldstein	 
	 	 	Phillip Goldstein
	 	 	 
	 	By:	/s/ Gerald Hellerman	 
	 	 	Gerald Hellerman

                    

                    

 

 

    	 	23	 

    	 

    

 

Annex A

ARTICLES OF CONVERSION

CONVERTING

CROSSROADS CAPITAL, INC.

TO

CROSSROADS LIQUIDATING TRUST

Pursuant to the provisions
of §3-903 of the Maryland General Corporation law, Crossroads Capital, Inc., a Maryland Corporation, hereby certifies as follows:

Article I

The name of the Maryland
Corporation is Crossroads Capital, Inc. (the ”Converting Corporation”). The Converting Corporation’s Articles
of Incorporation were filed on May 9, 2008.

Article II

The Converting Corporation
is converting into Crossroads Liquidating Trust, a statutory trust formed under the general laws of the State of Maryland (the
“Converted Trust”).

Article III

The terms and conditions
of the conversion have been approved by the board of directors and stockholders of the Converting Corporation in accordance with
§3-902 of the Maryland General Corporation Law and the Converting Corporation’s Articles of Amendment and Restatement,
as amended, and the Amended and Restated Bylaws, as amended.

Article IV

Each outstanding share
of preferred and common stock of the Converting Corporation, par value $0.001 per share, shall, without any further action on the
part of any stockholder of the Converting Corporation, be converted into and exchanged for one unit of beneficial interest of the
Converted Trust. There has been no preferred stock issued.

Article V

These Articles of Conversion
shall become effective at 11:59 p.m. Eastern Time on June 23, 2017.

Article VI

The Converting Corporation
shall cease to exist as a Maryland corporation and shall continue to exist as the Converted Trust, and the Converted Trust, for
all purposes of the laws of the State of Maryland, shall be deemed to be the same entity as the Converting Corporation. All the
assets of the Converting Corporation, including any legacies that it would have been capable of taking, shall vest in and devolve
on the Converted Trust without further act or deed and shall be the property of the Converted Trust, and the Converted Trust shall
be liable for all of the debts and obligations of the Converting Corporation.

    	 	24	 

    	 

    

 

IN WITNESS WHEREOF,
these Articles of Conversion are hereby executed for and on behalf of Crossroads Capital, Inc. by its President and Chief Executive
Officer, who does hereby acknowledge that said Articles of Conversion are the act of said corporation, and who does hereby state
under penalties of perjury that the matters and facts set forth therein with respect to authorization and approval of said conversion
are true in all material respects to the best of his knowledge, information and belief.

 

	 	CROSSROADS CAPITAL, INC.
	 	 
	 	 
	 	 
	 	By:	 	 
	 	Name:	Ben H. Harris
	 	Title:	President and Chief Executive
Officer

 

	Attest:	 
	 	 
	 	 	 
	Name:  David M. Hadani	 
	Title:    Secretary	 

 

    	 	25	 

    	 

    

 

STATE OF

)

 

COUNTY OF

)

 

 

I hereby certify
that on ______________________________, 2017, before me, the subscriber, a notary public for the state and county aforesaid, personally
appeared Ben H. Harris, President and Chief Executive Officer of Crossroads Capital, Inc., a corporation party to the annexed Articles
of Conversion, and, on behalf of the said corporation, acknowledged the annexed Articles of Conversion to be the act of said corporation.

WITNESS my hand and
notarial seal the date first above written.

 

	 	 	 
	 	Notary Public
	 	 
	 	 
	 	 

 

 

[Affix Notarial Seal]

    	 	26	 

    	 

    

 

Annex B

CERTIFICATE OF TRUST

THIS IS TO CERTIFY THAT:

The undersigned trustees hereby form
a statutory trust pursuant to the laws of the State of Maryland.

1.       

Trust Name.

The name of the
statutory trust is Crossroads Liquidating Trust.

2.       

Resident Agent.

The name and address
of the Resident Agent of the Trust are The Corporation Trust Incorporated, 351 West Camden Street, Baltimore, MD 21201.

3.       

Principal Office.

The address of the
Principal Office of the Trust in the state of Maryland is: c/o The Corporation Trust Incorporated, 351 West Camden Street, Baltimore,
MD 21201.

4.       

Governance.

The Trust shall
be governed by that certain Liquidating Trust Agreement dated as of June 23, 2017 by and among Crossroads Capital, Inc., and Andrew
Dakos, Phillip Goldstein and Gerald Hellerman, as Trustees, as may be amended from time to time.

The undersigned, being the trustees of
the Trust, acknowledges under the penalties for perjury that, to the best of his knowledge and belief, the facts stated herein
are true.

IN WITNESS WHEREOF, the undersigned trustees
have signed this Certificate of Trust as of this ____ day of ____________, 2017.

 

	 	 TRUSTEES:
	 	 
	 	 
	 	By:		 
	 	 	Andrew Dakos
	 	 	 
	 	By:		 
	 	 	Phillip Goldstein
	 	 	 
	 	By:		 
	 	 	Gerald Hellerman

                    

                    

                    

 

    	 	27	 

    	 

    

 

I hereby consent to my designation as
Resident Agent for:

 

CROSSROADS LIQUIDATING TRUST

 

	 	THE CORPORATION TRUST INCORPORATED
	 	 
	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:	 

 

 

    	 	28EX-10.1

EX 10.1

NEITHER THE ISSUANCE AND SALE OF THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE
OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933 OR
(B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A OR OTHER EXEMPTION UNDER SAID ACT.

THE TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS PROHIBITED EXCEPT IN ACCORDANCE WITH THE
SECURITIES ACT OF 1933, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION.

VIASPACE INC.

SENIOR CONVERTIBLE PROMISSORY NOTE

$10,000.00 June 19, 2017

FOR VALUE RECEIVED, VIASPACE INC., a Nevada corporation (“Company”), promises to pay to Kevin
Schewe (“Holder”), or its registered assigns, in lawful money of the United States of America the
principal sum of TEN THOUSAND Dollars ($10,000.00), or such other amount as shall equal the
outstanding principal amount hereof, together with interest from the date of this Note on the
unpaid principal balance at a rate equal to eight percent (8.0%) per annum, computed on the basis
of the actual number of days elapsed and a year of 365 days. Unless converted into Common Stock of
Company as set forth in Section 3 and/or Section 8 below, all unpaid principal, together with any
then unpaid and accrued interest, shall be due and payable on the earlier of (i) June 19, 2018 (the
“Maturity Date”), (ii) upon prepayment of all amounts due and payable under this Note in accordance
with the terms hereof, or (iii) when, upon or after the occurrence of an Event of Default (as
defined below), such amounts are declared due and payable by Holder or made automatically due and
payable in accordance with the terms hereof. Immediately prior to the issuance of this Note by
Company, Holder acknowledges that it has delivered to Company the sum of TEN THOUSAND Dollars
($10,000.00) reflecting the principal amount under this Note.

This Note is one of a series of notes (the “Notes”) having like tenor and effect (except for
variations necessary to express the name of the holder, the principal amount of each of the Notes
and the date on which each Note is funded) in an aggregate principal amount of up to $100,000
issued or to be issued by Company on or about the period from February 23, 2017 to February 23,
2019 (or such other period as agreed upon by the Company and the Holder) pursuant to the terms of a
Loan Agreement, dated as of February 23, 2017, by and between Company and the Holder (or his
designees) of the Notes (the “Loan Agreement”). The Notes shall rank equally without preference or
priority of any kind over one another, and all payments on account of principal and interest with
respect to any of the Notes shall be applied ratably and proportionately on the outstanding Notes
on the basis of the principal amount of the outstanding indebtedness represented thereby.

The following is a statement of the rights of Holder and the conditions to which this Note is
subject, and to which Company by issuance of this Note, and Holder by the acceptance of this Note,
agree:

1. Definitions. As used in this Note, the following capitalized terms have the
following meanings:

(a) “Common Stock” shall mean the Company’s Common Stock, par value $0.0001.

(b) “Company” includes the corporation initially executing this Note and any Person which
shall succeed to or assume the obligations of Company under this Note.

(c) “Conversion Notice” has the meaning given in Section 7(e) hereof.

(d) “Conversion Period” shall mean the period from the date of the Note and ending on the
Maturity Date.

(e) “Conversion Price” has the meaning given in Section 7(b) hereof

(f) “Event of Default” has the meaning given in Section 6 hereof.

(g) “Holder” shall mean the Person specified in the introductory paragraph of this Note or any
Person who shall at the time be the registered holder of this Note. “Holders” shall mean the
Persons collectively specified in the introductory paragraph of this Note and the other Notes or
any Persons who shall at the time be the registered holders of this Note and the other Notes.

(h) “Majority Holders” shall mean Holders holding a majority of the aggregate principal amount
of the Notes then outstanding.

(i) “Note” shall mean this Senior Convertible Promissory Note.

(j) “Obligations” shall mean and include all loans, advances, debts, liabilities and
obligations owed by Company to Holder of every kind and description, now existing or hereafter
arising under or pursuant to the terms of this Note including, all interest, fees, charges,
expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by
Company hereunder.

(k) “Person” shall mean and include an individual, a partnership, a corporation (including a
business trust), a joint stock company, a limited liability company, an unincorporated association,
a joint venture or other entity or a governmental authority.

(l) “Prepayment Amount” has the meaning given in Section 3 hereof

(m) “Prepayment Notice” has the meaning given in Section 3 hereof.

(n) “Sale Transaction” shall mean a transaction or series of related transactions involving
(i) the consolidation or merger of Company with another Person, (ii) a sale of all or substantially
all of the assets of Company, (iii) a purchase, tender or exchange offer that is accepted by the
holders of more than the 50% of the outstanding shares of capital stock of Company, (iv) the
consummation of a stock purchase agreement or other business combination with another Person
whereby such other Person acquires more than the 50% of the outstanding capital stock of Company.

(o) “Securities Act” has the meaning given in Section 5(b) hereof.

(p) “Loan Agreement” has the meaning in the second introductory paragraph of this Note.

(q) “Successor Entity” has the meaning given in Section 10 hereof.

Capitalized term not otherwise defined shall have the meaning set forth in the Loan Agreement.

2. Interest. Unless converted into Common Stock of Company as set forth in Section 8
below, or unless prepaid or converted as set forth in Section 3 below, accrued interest on this
Note shall be payable on the Maturity Date.

3. Prepayment. During the Conversion Period, Company may, at any time and from time
to time, prepay all or any portion of the principal due under this Note, together with accrued
interest, without penalty. Company shall effect such prepayment by providing Holder twenty (20)
days written notice prior to the date of such prepayment (such notice, a “Prepayment Notice”)
indicating the amount of principal and accrued interest Company desires to prepay (the “Prepayment
Amount”). Notwithstanding the foregoing, Holder shall have 10 days following receipt of such
Prepayment Notice to notify Company in writing of its election to convert the Prepayment Amount
into shares of Common Stock, in which case such Prepayment Amount shall be converted into shares of
Common Stock in accordance with the conversion procedures set forth in Section 8(e) hereof
(provided that, with respect to conversions effected pursuant to this Section 3, any references to
the Conversion Amount in Section 8(e) shall refer to the Prepayment Amount). Should Holder elect
to convert the Prepayment Amount into shares of Common Stock, the number of shares of Common Stock
into which such Prepayment Amount will be converted shall be determined by dividing the Prepayment
Amount by the then applicable Conversion Price.

4. Representations and Warranties of Holder. Holder represents and warrants to Company
as follows:

(a) Binding Obligation. Holder has full legal capacity, power and authority to execute
and deliver this Note and to perform his obligations hereunder. This Note is a valid and binding
obligation of Holder, enforceable in accordance with its terms, except as limited by bankruptcy,
insolvency or other laws of general application relating to or affecting the enforcement of
creditors’ rights generally and general principles of equity.

(b) Securities Law Compliance. Holder has been advised that this Note has not been
registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state
securities laws and, therefore, cannot be resold unless they are registered under the Securities
Act and applicable state securities laws or unless an exemption from such registration requirements
is available. Holder is aware that Company is under no obligation to effect any such registration
with respect to this Note, or the Common Stock issuable or issued pursuant to the conversion of
this Note, or to file for or comply with any exemption from registration. Holder has not been
formed solely for the purpose of making this investment and is purchasing this Note for its own
account for investment, not as a nominee or agent, and not with a view to, or for resale in
connection with, the distribution thereof. Holder has such knowledge and experience in financial
and business matters that Holder is capable of evaluating the merits and risks of such investment,
is able to incur a complete loss of such investment and is able to bear the economic risk of such
investment for an indefinite period of time.

(c) Accredited Investor. Holder is an “accredited investor” within the meaning of SEC
Rule 501 of Regulation D of the Securities Act, as presently in effect.

(d) Restricted Securities. Holder understands that this Note is a “restricted
security” under the federal securities laws inasmuch as it is being acquired from Company in a
transaction not involving a public offering and that under such laws and applicable regulations
such Note may be resold without registration under the Securities Act only in certain limited
circumstances. In the absence of an effective registration statement covering the Note or an
available exemption from registration under the Securities Act, the Note must be held indefinitely.
Holder represents that it is familiar with SEC Rule 144, and understands the resale limitations
imposed thereby and by the Securities Act.

(e) Access to Information. Holder acknowledges that Company has given Holder access
to the corporate records and accounts of Company and to all information in its possession relating
to Company, has made its officers and representatives available for interview by Holder, and has
furnished Holder with all documents and other information required for Holder to make an informed
decision with respect to the purchase of this Note.

5. Events of Default. The occurrence of any of the following shall constitute an
“Event of Default” under this Note:

(a) Failure to Pay. Company shall fail to pay (i) when due any principal or interest
payment on the due date hereunder or (ii) any other payment required under the terms of this Note
on the date due, and (in either case) such payment shall not have been made within twenty (20) days
of Company’s receipt of Holder’s written notice to Company of such failure to pay;

(b) Failure to Perform. Company fails to perform any obligation under this Note and
does not cure that failure within twenty (20) days of Company’s receipt of Holder’s written notice
to Company of such failure to perform; or

(c) Voluntary Bankruptcy or Insolvency Proceedings. Company shall (i) apply for or
consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a
substantial part of its property, (ii) be unable, or admit in writing its inability, to pay its
debts generally as they mature, (iii) make a general assignment for the benefit of its or any of
its creditors, (iv) be dissolved or liquidated, (v) become insolvent (as such term may be defined
or interpreted under any applicable statute), (vi) commence a voluntary case or other proceeding
seeking liquidation, reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such
relief or to the appointment of or taking possession of its property by any official in an
involuntary case or other proceeding commenced against it, or (vii) take any action for the purpose
of effecting any of the foregoing; or

(d) Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment
of a receiver, trustee, liquidator or custodian of Company or of all or a substantial part of the
property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization
or other relief with respect to Company or the debts thereof under any bankruptcy, insolvency or
other similar law now or hereafter in effect shall be commenced and an order for relief entered or
such proceeding shall not be dismissed or discharged within thirty (30) days of commencement.

6. Rights of Holder upon Default. Upon the occurrence or existence of any Event of
Default (other than an Event of Default referred to in Sections 6(c) and 6(d)) and at any time
thereafter during the continuance of such Event of Default, the Majority Holders may, by written
notice to Company, declare all outstanding Obligations payable by Company under the Notes to be
immediately due and payable without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived. Upon the occurrence or existence of any Event of Default
described in Sections 6(c) and 6(d), immediately and without notice, all outstanding Obligations
payable by Company under the Notes shall automatically become immediately due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are hereby expressly
waived. In addition to the foregoing remedies, upon the occurrence or existence of any Event of
Default, Holder may exercise any other right power or remedy permitted to him by law, either by
suit in equity or by action at law, or both.

7. Conversion.

(a) Conversion. Holder shall have the right to convert, at any time during the
Conversion Period, all or any portion of the principal amount, together with any unpaid and accrued
interest, then outstanding under this Note into fully paid and non-assessable shares of Common
Stock at a conversion price per share equal to the Conversion Price (as defined below). The number
of shares of Common Stock into which such principal and interest then outstanding under this Note
will be converted shall be determined by dividing the amount of principal, together with all unpaid
and accrued interest, then outstanding under this Note to be converted (the “Conversion Amount”) by
the Conversion Price. The holder will not convert the note into a number of common shares that
would exceed the number of available authorized common shares calculated as of the date of
conversion as follows: the number of authorized shares of common stock less the number of issued
and outstanding shares of common stock less the number of shares of common stock issuable under all
other outstanding convertible instruments of the Company.

(b) Conversion Price. Subject to Section 8(c), the “Conversion Price” shall be equal
to twenty per cent (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.

(c) Adjustments to Conversion Price. The Conversion Price shall be subject to
proportional adjustments for stock splits, stock dividends, combinations, consolidations,
reclassifications and the like.

(d) Conversion Procedure. Before Holder shall be entitled to convert the Conversion
Amount then outstanding under this Note into shares of Common Stock, Holder shall surrender this
Note at the office of this Company, and shall give written notice (a form of which is attached to
this Note, the “Conversion Notice”) to Company at its principal corporate office, of the election
to convert the same and shall state therein the total Conversion Amount. Company shall not be
obligated to issue certificates evidencing the shares of Common Stock issuable upon such conversion
unless (i) Holder executes and delivers to Company the Conversion Notice for the converted shares
and (ii) this Note is delivered to Company. Company shall, as soon as practicable after such
delivery, issue and deliver certificates (bearing such legends as are required by applicable state
and federal securities laws in the opinion of counsel to Company and required by this Note and the
Loan Agreement), representing the number of fully paid and non-assessable shares of the Common
Stock into which the Conversion Amount will be converted in accordance with the provisions herein,
and a new promissory note having like tenor as this Note for the principal amount and interest then
outstanding under this Note that are not being so converted. Any conversion pursuant to this
Section 8 shall be deemed to have been made immediately prior to the close of business on the date
of Company’s receipt of the Conversion Notice, so that the rights of Holder under this Note to the
extent of the Conversion Amount shall cease at such time and Holder shall be treated for all
purposes as having become the record holder of such shares of Common Stock at such time.

(e) Fractional Shares; Effect of Conversion. No fractional shares shall be issued
upon conversion of this Note. In lieu of Company issuing any fractional shares to Holder upon the
conversion of this Note, Company shall pay to Holder an amount equal to the product obtained by
multiplying the Conversion Price by the fraction of a share not issued pursuant to the previous
sentence. Upon conversion of this Note in full and the payment of the amounts specified in this
Section 9(f), Company shall be forever released from all its obligations and liabilities under this
Note.

(f) Reservation of Stock Issuable Upon Conversion. Company shall at all times reserve
and keep available out of its authorized but unissued shares of Common Stock solely for the purpose
of effecting the conversion of this Note such number of its shares of Common Stock as shall from
time to time be sufficient to effect the conversion of this Note.

8. Reserved

9. Effect of Sale Transaction. Upon the occurrence of any Sale Transaction, the
Successor Entity (as defined below) shall succeed to, and be substituted for the Company (so that
from and after the date of such Sale Transaction, the provisions of this Note referring to the
“Company” shall refer instead to the Successor Entity), and may exercise every right and power of
the Company and shall assume all of the obligations of the Company under this Note with the same
effect as if such Successor Entity had been named as the Company herein. Upon consummation of the
Sale Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be
issued upon conversion of this Note at any time after the consummation of the Sale Transaction, in
lieu of the shares of the Common Stock purchasable upon the conversion of the Notes prior to such
Sale Transaction, such shares of common stock (or other securities, cash, assets or other property)
of the Successor Entity. The provisions of this Section shall apply similarly and equally to
successive Sale Transactions and shall be applied without regard to any limitations on the
conversion of this Note. As used in this Section 10, “Successor Entity” means the Person, which
may be the Company, formed by, resulting from or surviving any Sale Transaction, or the parent
entity of such Person, as applicable.

10. Successors and Assigns. Subject to the restrictions on transfer described in
Sections 12 and 13 below, the rights and obligations of Company and Holder of this Note shall be
binding upon and benefit the successors, assigns, heirs, administrators and transferees of the
parties.

11. Waiver and Amendment. Any term of this Note may be amended or waived only with
the written consent of Company and the Majority Holders; provided, however, that any such amendment
or modification which by its terms would not apply equally to all holders of the Notes shall not be
applicable to any holder whose rights under the Notes would be adversely affected by such amendment
or modification in a different manner than other holders thereof without such adversely affected
holder’s written consent.

12. Transfer of this Note or Securities Issuable on Conversion Hereof. With respect
to any offer, sale or other disposition of this Note or securities into which such Note may be
converted, Holder will give written notice to Company prior thereto, describing briefly the manner
thereof, together with a written opinion of Holder’s counsel, or other evidence if reasonably
satisfactory to Company, to the effect that such offer, sale or other distribution may be effected
without registration or qualification (under any federal or state law then in effect). Upon
receiving such written notice and reasonably satisfactory opinion, if so requested, or other
evidence, Company, as promptly as practicable, shall notify Holder that Holder may sell or
otherwise dispose of this Note or such securities, all in accordance with the terms of the notice
delivered to Company. If a determination has been made pursuant to this Section 12 that the
opinion of counsel for Holder, or other evidence, is not reasonably satisfactory to Company,
Company shall so notify Holder promptly after such determination has been made. Each Note thus
transferred and each certificate representing the securities thus transferred shall bear a legend
as to the applicable restrictions on transferability in order to ensure compliance with the
Securities Act, unless in the opinion of counsel for Company such legend is not required in order
to ensure compliance with the Securities Act. Company may issue stop transfer instructions to its
transfer agent in connection with such restrictions. Subject to the foregoing, transfers of this
Note shall be registered upon registration books maintained for such purpose by or on behalf of
Company. Prior to presentation of this Note for registration of transfer, Company shall treat the
registered Holder hereof as the owner and Holder of this Note for the purpose of receiving all
payments of principal and interest hereon and for all other purposes whatsoever, whether or not
this Note shall be overdue and Company shall not be affected by notice to the contrary.

13. Notices. Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one business day after deposit with an overnight
courier service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be to the respective addresses or facsimile
numbers of the parties as set forth in the Loan Agreement, or at such other address or facsimile
number as such parties shall have furnished in writing.

14. Usury. In the event any interest is paid on this Note which is deemed to be in
excess of the then legal maximum rate, then that portion of the interest payment representing an
amount in excess of the then legal maximum rate shall be deemed a payment of principal and applied
against the principal of this Note.

15. Waivers. Company hereby waives notice of default, presentment or demand for
payment, protest or notice of nonpayment or dishonor and all other notices or demands relative to
this instrument.

16. Governing Law and Forum. This Note and all actions arising out of or in
connection with this Note shall be governed by and construed in accordance with the laws of the
State of Colorado, United States of America, without regard to the conflicts of law provisions of
the State of Colorado, or of any other state. All disputes or controversies relating to or arising
from this Note shall be adjudicated in the state and federal courts located in the state of
Colorado. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS NOTE AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS
WAIVER. The Convention on Contracts for the International Sale of Goods shall not apply to this
Note.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, Company has caused this Note to be issued as of the date first written
above and Holder agrees to the terms and conditions of this Note.

VIASPACE INC.

By:/S/ HARIS BASIT

Name: Haris Basit

Its: CEO

KEVIN SCHEWE

/S/ KEVIN SCHEWE

NOTICE OF CONVERSION

(To be executed by the Registered Holder in order to convert the Note)

The undersigned hereby elects to convert $10,000.00 of the principal and $0.00 of the interest
due on the Note issued by VIASPACE Inc. on June 19, 2017 into Shares of Common Stock of VIASPACE
Inc. (the “Borrower”) according to the conditions set forth in such Note, as of the date written
below.

Date of Conversion:       June 19, 2017      

Conversion Price:      $0.000351      

Shares To Be Delivered:      28,490,028      

Signature:      /S/ KEVIN SCHEWE—

Print Name:       Kevin Schewe—

Address:      

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