Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.2

NONEXCLUSIVE

SOFTWARE LICENSE AGREEMENT

This software license agreement (“Software Agreement”) is effective as of the 2nd day of
March, 2007 (“Effective Date”) between VIASPACE Inc., a Nevada corporation located at 171 N.
Altadena Drive, Suite 101, Pasadena, California 91107 (hereinafter called “Licensee”) and the
California Institute of Technology, a not-for-profit California corporation, located at 1200 E.
California Blvd., Pasadena, CA 91125 (“Caltech”) and its operating division, the Jet Propulsion
Laboratory (“JPL”). All rights not specifically granted in this Agreement are reserved to Caltech.

ARTICLE 1

DEFINITIONS

The following words, phrases, or terms in this Software Agreement shall have the following
meanings:

1.1 ""Knowledge Base Editor” or “KBE” Software” means the suite of programs, scripts, manuals, and
procedures received from Caltech for the purpose of describing the input rules and knowledge base
input for expert systems and/or inference engines such as SHINE. See Exhibit A attached hereto for
description.

1.2 “Executable Code” means computer software programs, not readily perceivable by humans, and
suitable for machine execution without the intervening steps of interpretation or compilation.

1.3 “Source Code” means computer software programs not in machine-readable format and not suitable
for machine execution without the intervening steps of interpretation or compilation.

1.4 “Software” means copyright rights, as defined by United States copyright laws and applicable
international treaties and/or conventions, to the suite of programs, scripts, and manuals received
from Caltech as listed in Exhibit A.

1.5 “SHINE” means Executable and Source Code pertaining to Spacecraft Health Inference Engine
(SHINE), which has been licensed from Caltech under a separate agreement.

1.6 “Derivative Works” means any work consisting of revisions, annotations, elaborations, or other
modifications to Software which, as a whole, represent an original work of authorship. Derivative
Works includes any updates and new releases of the Software developed during the term of this
license, inclusive of backups, updates, or merged copies permitted hereunder including the file
structures, programming instructions, user interfaces and screen formats and sequences.

1.7 “Licensed Product” means any product, device, service, which comprises, incorporates, is made
by, is enabled by, is designed by, or uses the Software.

1..8 Sublicense” shall mean, with respect to a particular Licensed Product, an agreement with a
third party to whom Licensee has granted a right under this Agreement to make, have made, import,
have imported, use, have used, sell, have sold, offer for sale, have offered for sale, import, have
imported and otherwise exploit Licensed Products. Sublicenses shall not include Source Code, and
may be for Executable Code only.

 

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1.9 “Net Revenue” shall mean gross revenue from the use of the Software or sale of Licensed Product
including, but not limited to, any sale, license, sublicense, lease, service, maintenance, upgrade
or support activities, or distribution less Deductible Expenses.

1.10 “Deductible Expenses” means the following items incurred in connection with sales of Licensed
Products to the extent paid or allowed by Licensee and included in accordance with recognized
principles of accounting in the gross sales price billed: (i) sales, use or turnover taxes; (ii)
excise value added or other taxes, custom duties or consular fees; (iii) transportation, freight,
and handling charges, and insurance on shipments to customers; (iv) trade, cash or quantity
discounts or rebates to the extent actually granted; (v) agent fees or commissions; (vi) rebates,
refunds, and credits for any rejected or returned Software or because of retroactive price
reductions, rebates or chargebacks; and (vii) uncollected accounts receivable attributable to sales
of Software.

1.11 “Related Company” means any corporation, Limited Liability Company or other legal entity
directly or indirectly controlled by Licensee or its successors or assigns, or any successor or
assign of such an entity. For the purpose of this Software Agreement, “control” shall mean the
direct or indirect ownership of at least fifty percent (50%) of the outstanding shares or other
voting rights of the subject entity to elect directors, or if not meeting the preceding, any entity
owned or controlled by or owning or controlling at the maximum control or ownership right permitted
in the country where such entity exists.

ARTICLE 2

CONFIDENTIALITY

2.1 Except as expressly provided herein, each party agrees not to disclose any terms of this
Software Agreement to any third party without the consent of the other party; provided, however,
that disclosures may be made as required by securities laws or other applicable laws, or to actual
or prospective investors or corporate partners, or to a party’s accountants, attorneys or to the
United States Government and or other professional advisors.

ARTICLE 3

COPYRIGHT MARKING

3.1 Licensee will mark, in at least one conspicuous location, a notice that the Software and
Related Materials are owned by Caltech. All marking should include: © 2007 California Institute of
Technology, Pasadena, California. ALL RIGHTS RESERVED. Based on Government Sponsored Research
NAS7-03001.

ARTICLE 4

GRANT OF LICENSE

4.1 Caltech hereby grants to Licensee a nonexclusive nontransferable license to Software, with the
right to Sublicense when licensed with SHINE, to make, have made, import, have imported, use, have
used, sell, have sold, offer for sale, have offered for sale, import, have imported and otherwise
exploit Licensed Products throughout the world. Upgrades to the software will be provided by
Caltech to Licensee for four years from the Effective Date.

4.2 Caltech retains ownership of any copyright rights to the Software (as defined above), licensed
under this Software Agreement.

4.3 Licensee agrees to grant Caltech a fully paid-up, royalty-free nonexclusive license for
educational and research purposes to any Derivative Works of Software that are owned or controlled
by Licensee.

 

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4.4 This Agreement is not assignable by Licensee to any party without the express written consent
of Caltech, provided, however, that Licensee may assign this Agreement to a third party that
acquires substantially all of Licensee’s assets relating to this Agreement.

ARTICLE 5

USES NOT PERMITTED

5.1 Licensee may not remove or obscure any copyright or trademark notices.

5.2 The Software shall not become subject to application for patent or copyright by Licensee.

ARTICLE 6

ROYALTIES

6 In consideration of the rights granted to Licensee, Licensee agrees to pay Caltech a license
issue fee of twenty-five thousand ($25,000.), which shall be paid in five installments of five
thousand dollars ($5,000.) each. The first payment shall be due on the Effective Date of this
agreement. A payment of five thousand dollars ($5,000) shall be due on the 1st,
2nd, 3rd and 4th anniversary of the Effective Date, and Caltech
will invoice Licensee regarding same.

ARTICLE 7

TERM

7.1 This Agreement shall commence on the Effective Date for a period of eight years (8) (“Initial
Term”), unless extended pursuant to Section 6.2 hereof, or earlier terminated pursuant to Article 8
(the duration of this Software Agreement shall be referred to as the “Term”). At the end of the
Initial Term, if Licensee has not elected to extend the term of this Software Agreement pursuant to
Section 7.2, Licensee shall return all copies of Software or certify their destruction.

7.2 On or before the expiration of the initial term, Licensee may elect to extend the Term of the
Software Agreement for an additional eight (8) years by payment of an extension fee of twenty-five
thousand dollars ($25,000.00) (“Extension Fee”). The term of the Software Agreement may be
extended for the life of the copyright rights by payment of the Extension Fee on or before the
expiration of each eight year period.

ARTICLE 8

TERMINATION

8.1 If either party materially breaches this Software Agreement, the other party may elect to give
the breaching party written notice describing the alleged breach. If the breaching party has not
cured such breach within sixty (60) days after receipt of such notice, the notifying party will be
entitled, in addition to any other rights it may have under this Software Agreement, to terminate
this Software Agreement effective immediately; provided, however, that if either party receives
notification from the other of a material breach and if the party alleged to be in default notifies
the other party in writing within thirty (30) days of receipt of such default notice.

8.2 Licensee shall have the right to terminate this Software Agreement either in its entirety or as
to any jurisdiction or any part of the Licensed Patent Rights upon sixty (60) days written notice.
The license issue fee and any paid or due royalties are non-refundable.

 

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8.3 Termination for Monetary Breach. Caltech shall have the right to terminate this Software
Agreement and the rights and licenses hereunder if Licensee fails to make any payment due including
minimum annual royalties or royalties hereunder and Licensee continues to fail to make the payment,
(either to Caltech directly or by placing any disputed amount into an interest-bearing escrow
account to be released when the dispute is resolved) for a period of seven (7) days after receiving
written notice from Caltech specifying Licensee’s failure. Upon any such termination, (a) Licensee
shall have six (6) months to complete the manufacture of any Licensed Products that are then works
in progress for sale and to sell its inventory of Licensed Products, provided that Licensee pays
the applicable royalties, and (b) any sublicenses shall survive termination of this Software
Agreement.

8.4 Termination of this Software Agreement for any reason shall not release any party hereto from
any liability which, at the time of such termination, has already accrued to the other party or
which is attributable to a period prior to such termination, nor preclude either party from pursing
any rights and remedies it may have hereunder or at law or in equity which accrued or are based
upon any event occurring prior to such termination.

8.5 Articles 1, 10-16 of this Software Agreement shall survive termination of this Software
Agreement for any reason.

ARTICLE 9

RELATIONSHIP OF THE PARTIES

9.1 Caltech and Licensee are independent parties in this Software Agreement. Accordingly, there is
no agency, joint venture or partnership relationship between Caltech and Licensee under this
Agreement.

ARTICLE 10

PRODUCT LIABILITY

10.1 Indemnification: Licensee agrees that Caltech (including its trustees, officers,
faculty and employees) shall have no liability to Licensee its affiliates, their customers or any
third party, for claims, demands, losses, costs, or other damages, which may result from personal
injury, death, or property damage related to the Licensed Products (“Product Liability
Claims”). Licensee agrees to defend, indemnify, and hold harmless Caltech, its trustees,
officers, agents, faculty and employees from any such Product Liability Claims, provided that: (a)
Licensee is notified promptly of any Product Liability Claims, (b) Licensee has the sole right to
control and defend or settle any litigation within the scope of this indemnity, and (c) all
indemnified parties cooperate to the extent necessary in the defense of any Product Liability
Claims.

ARTICLE 11

DISCLAIMER

11.1 THE SOFTWARE IS EXPERIMENTAL IN NATURE AND IS BEING LICENSED “AS IS.” THE LICENSE OF THE
SOFTWARE DOES NOT INCLUDE ANY TECHNICAL SUPPORT. CALTECH MAKES NO WARRANTIES, REPRESENTATION OR
UNDERTAKING WITH RESPECT TO THE UTILITY, EFFICACY, SAFETY, OR APPROPRIATENESS OF USING THE
SOFTWARE. CALTECH REPRESENTS AND WARRANTS THAT IT HAS THE RIGHT TO LICENSE THE SOFTWARE TO
LICENSEE AND THAT SOFTWARE IS PROTECTED BY UNITED STATES COPYRIGHT LAWS AND APPLICABLE
INTERNATIONAL TREATIES AND/OR CONVENTIONS.

THE SOFTWARE IS PROVIDED “AS-IS” WITHOUT WARRANTY OF ANY KIND INCLUDING ANY WARRANTIES OF
PERFORMANCE OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE (AS SET FORTH IN UCC
§§23212-2313) OR FOR ANY PURPOSE WHATSOEVER, FOR THE LICENSED PRODUCT, HOWEVER USED.

 

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IN NO EVENT SHALL CALTECH BE LIABLE FOR ANY DAMAGES AND/OR COSTS, INCLUDING BUT NOT LIMITED TO
INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY
AND LOST PROFITS, REGARDLESS OF WHETHER CALTECH SHALL BE ADVISED, HAVE REASON TO KNOW, OR IN FACT
SHALL KNOW OF THE POSSIBILITY.

LICENSEE BEARS ALL RISK RELATING TO QUALITY AND PERFORMANCE OF THE SOFTWARE.

CALTECH SHALL NOT BE LIABLE FOR ANY USE OF THE SOFTWARE OR RELATED KNOW-HOW, AND LICENSEE HEREBY
AGREES TO DEFEND, INDEMNIFY AND HOLD CALTECH AND ITS EMPLOYES HARMLESS FROM ANY LOSS, CLAIM, DAMAGE
OR LIABILITY, OR WHATEVER KIND OF NATURE, WHICH MAY ARISE FROM THE AGREEMENT, OR THE USE BY
LICENSEE OF THE SOFTWARE OR RELATED KNOW-HOW HEREUNDER.

ARTICLE 12

MISCELLANEOUS

12.1 Licensee agrees that it shall not use the name of Caltech, California Institute of Technology,
Jet Propulsion Laboratory, or JPL in any advertising or publicity material, or make any form of
representation or statement which would constitute an express or implied endorsement by Caltech of
any Licensed Product, and that it shall not authorize others to do so, without first having
obtained written approval from Caltech, except as may be required by governmental law, rule or
regulation.

12.2 This Agreement shall be binding upon and inure to the benefit of any successor or assignee of
Caltech and Licensee.

12.3 Any notice or communication required or made under this Agreement shall be addressed as
follows:

			
	 	 	 

	 
	     Caltech:	 	Director, Office of Technology Transfer

California Institute of Technology

1200 East California Boulevard (MC 210-85)

Pasadena, CA 91125

Fax No.: (626) 356-2486

	 
	 	 	 

	 
	     Licensee:	 	VIASPACE Inc.

ATT: CEO

171 N. Altadena Drive, Suite 101

Pasadena, CA 91107

Fax No.: (626) 578-9063

Either party may notify the other in writing of a change of address or fax number, in which event
any subsequent communication relative to this Agreement shall be sent to the last said notified
address or number, provided, however, that the parties shall deliver all material notices under
this Agreement by registered mail or overnight delivery service. All notices and communications
relating to this Agreement shall be deemed to have been given when received.

12.4 In the event that any provisions of this Software Agreement are determined to be invalid or
unenforceable by a court of competent jurisdiction, the remainder of the Agreement shall remain in
full force and effect without said provision. The parties shall in good faith negotiate a
substitute clause for any provision declared invalid or unenforceable, which shall most nearly
approximate the intent of the parties in entering this Software Agreement.

 

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12.5 This Software Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

12.6 The headings of the several Paragraphs are inserted for convenience of reference only and are
not intended to be a part of or to affect the meaning or interpretation of this Software Agreement.

12.7 Whenever provision is made in this Software Agreement for either party to secure the consent
or approval of the other, that consent or approval shall not unreasonably be withheld or delayed,
and whenever in this Software Agreement provisions are made for one party to object to or
disapprove a matter, such objection or disapproval shall not unreasonably be exercised.

ARTICLE 13

FORCE MAJEURE

13.1 Neither party shall lose any rights hereunder or be liable to the other party for damages or
losses (except for payment obligations) on account of failure of performance by the defaulting
party if the failure is occasioned by war, strike, fire, Act of God, earthquake, flood, lockout,
embargo, governmental acts or orders or restrictions, failure of suppliers, or any other reason
where failure to perform is beyond the reasonable control and not caused by the negligence or
intentional conduct or misconduct of the nonperforming party, and such party has exerted all
reasonable efforts to avoid or remedy such force majeure; provided, however, that in no event shall
a party be required to settle any labor dispute or disturbance.

ARTICLE 14

EXPORT REGULATION

14 Software and Related Materials, including technical data, are subject to U.S. export control
laws, including the U.S. Export Administration Act as well as the Export Regulations in
Licensee’s country and its associated regulations, and may be subject to export or import
regulations in other countries. Licensee agrees to strictly comply with all U.S. Export
Control Regulations and acknowledges that it has the responsibility to obtain such licenses
for Software and/or Related Materials, as may be required before or after delivery to
Licensee. Licensee agrees not to disclose or re-export any Software or Related Materials
received under this Agreement.

ARTICLE 15

SUPPORT, MAINTENANCE AND UPGRADES

15. No software support or training by Caltech is provided as part of this agreement. Training
and support will be provided under a separate agreement with the Jet Propulsion Laboratory.

ARTICLE 16

MISCELLANEOUS

16.1 No failure or delay by Caltech in enforcing any right or remedy under this Agreement shall be
construed as a waiver of any future or other exercise of such right or remedy by Caltech.

16.2 Licensee agrees to pay any and all taxes (if applicable) on any amounts of royalties and/or
fees paid by Licensee to Caltech hereunder.

16.3 This Agreement, entered into in the County of Los Angeles, shall be construed and enforced in
accordance with and be governed by the laws of the State of California without reference to
conflict of
laws principles. The parties hereby consent to the exclusive personal jurisdiction and venue of
the courts within the State of California.

 

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16.4 This Software Agreement constitutes the sole and entire agreement of the parties as to the
matter set forth herein and supersedes any previous agreements, understandings, and arrangements,
whether oral or written, between the parties relating hereto. No waiver of or change in any of the
terms hereof subsequent to the execution hereof claimed to have been made by any representative of
either party shall have any force or effect unless in writing, signed by duly authorized
representatives of the parties.

SIGNATURES

IN WITNESS WHEREOF, the parties hereto have executed this Software Agreement to be effective,
valid, and binding upon the parties as of the date below as executed by their duly authorized
representatives.

Accepted and Agreed:

	 	 	 	 	 	 	 
	(Licensee) VIASPACE	 	(Caltech) California Institute of Technology:
	 
	 	 	 	 	 	 
	By:

	 	/s/ Amjad Abdallat
	 	By:
	 	/s/ Lawrence Gilbert
	 

	 	 
	 	 	 	 
	Authorized Signature	 	Authorized Signature
	 
	 	 	 	 	 	 
	Printed Name:

	 	A.J.Abdallat
	 	Printed Name:
	 	Lawrence Gilbert
	 

	 	 
	 	 	 	 
	Title:

	 	COO
	 	Title:
	 	Sr. Director of Technology Transfer Office
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	3-14-07
	 	Date:
	 	3-9-07
	 

	 	 
	 	 	 	 

 

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EXHIBIT A

Description of Software

Software is the suite of programs, scripts, manuals, generated and procedures described in the
following NASA NTR:

					
	 	 	 	 	 
	NPO 44476 CP
	 	Knowledge Based Editor (KBE)
	 	Raffi Tikidjian, Mark James and Ryan Mackey

Brief Description:  KBE is a Windows based application to create, edit and debug knowledge
bases for expert systems. Bases are saved in an XML format. They can also be translated or
exported into many different target languages, including customized ones. It works well with SHINE
(Spacecraft Health Inference Engine), also developed at JPL.

 

8Filed by Bowne Pure Compliance

 

Exhibit 10.3

TEAMING AGREEMENT

This TEAMING AGREEMENT, effective upon signature by both parties, is entered into by and between
Tokai Bussan Company LTD. (hereinafter referred to as Tokai Bussan), a corporation having a place
of business at 7-2-9, Todoroki, Setagaya-ku, Tokyo 158-0082, Japan, and VIASPACE Inc,
(hereinafter referred to as VIASPACE), a company situated at 171N. Altadena Dr., Suite #101,
Pasadena, CA 91107, United States of America.

RECITALS

WHEREAS Tokai Bussan is a global developer of software products for commercial and
industrial applications and has significant relationships with automobile manufacturers in Japan.

WHEREAS Tokai Bussan is a supply chain manager and distributor of a wide variety of consumer
electronic products including cell phones and notebook computers, for major OEMs in Japan.

WHEREAS VIASPACE is a company that transforms proven space and defense technologies from the
National Aeronautics and Space Administration (NASA) and the U.S. Department of Defense (DOD) into
hardware and software solutions suitable for the commercial market, and specifically develops
product based solutions for and markets an expert level software product known as SHINE (Space
Health Inference Engine), with potential diagnostics and prognostics applications for which Tokai
Bussan has a particular interest.

WHEREAS VIASPACE has a newly emerging line of Energy Products of and VIASPACE’s subsidiary, Direct
Methanol Fuel Cell Corporation (DMFCC) has a newly emerging line of fuel cell cartridge and other
fuel cell products for which Tokai Bussan has particular interest.

WHEREAS, this Agreement will enable each party to complement the unique capabilities of the other
and will provide potential Customers with the best combination of capabilities to achieve
Customers’ objectives;

1. PURPOSE OF TEAMING AGREEMENT

WHEREAS, Tokai Bussan and VIASPACE desire to formulate and submit proposals to enter into one or
more strategic contract relationships and/or partnerships in connection with their mutual interests
to various Customers in Japan (hereafter referred to as the Program) to:

This document remains the property of VIASPACE Inc.. All information contained herein is proprietary and confidential.

 

 

 

	 	1.	 	Promote VIASPACE Security products on a list of projects to be discussed and agreed
between Tokai Bussan and VIASPACE after signing of this agreement.

	 
	 	2.	 	Co-develop software products for the automotive industry, beginning in Japan

	 
	 	3.	 	Pursue mutually beneficial approaches regarding the distribution of VIASPACE Energy
Products in Japan and,

	 
	 	4.	 	Pursue mutually beneficial approaches regarding the distribution of DMFCC fuel cell
cartridges and/or fuel cell products in Japan

The purpose of this Teaming Agreement is to set forth the terms and conditions of the
commitments between Tokai Bussan and VIASPACE to carry out the Program.

The Program (“The Program”):

The program will entail the following from the respective parties:

Tokai Bussan:

	 	1.	 	To promote market awareness of the VIASPACE and DMFCC product range throughout Tokai
Bussan’s field of activities in Japan.

	 
	 	2.	 	Co-develop a diagnostic and/or prognostic application using SHINE software and present
a joint proposal to Toyota, Mitsubishi Heavy Industries, and other potential customers as
discussed and agreed between Tokai Bussan and VIASPACE.

	 
	 	3.	 	Seek sales opportunities for the VIASPACE and DMFCC product range and assist VIASPACE
and DMFCC in putting together winning sales proposals.

	 
	 	4.	 	Where contract proposals require, Tokai Bussan will provide VIASPACE with technical ,
supply chain and commercial support and expertise

	 
	 	5.	 	Provide technical and commercial assistance to VIASPACE in the installation and
implementation phase of contracts as contractually agreed to ensure successful completion
of any contract.

	 
	 	6.	 	Assist VIASPACE Security Products to integrate the product range into a wider system of
diagnostics and prognostics applications

	 
	 	7.	 	Assist VIASPACE and DMFCC in selecting other appropriate partners in Japan as agreed
between the parties

	 
	 	8.	 	The above activities shall not be in contradiction with the independent sales,
marketing and product development activities of VIASPACE, DMFCC and their agents.

VIASPACE/DMFCC:

	 	1.	 	To provide Tokai Bussan with necessary and agreed product information and marketing
materials to assist with market and product awareness.

This document remains the property of VIASPACE Inc.. All information contained herein is proprietary and confidential.

 

 

 

	 	2.	 	Co-develop a diagnostic and/or prognostic application using SHINE software and present
a joint proposal to Toyota, Mitsubishi Heavy Industries, and other potential customers as
discussed and agreed between Tokai Bussan and VIASPACE.

	 
	 	3.	 	To support and promote Tokai Bussan in markets in Japan that have been discussed and
agreed between Tokai Bussan and VIASPACE, where their teaming and/or support might be
required, in addition to VIASPACE’s and DMFCC’s own activities

	 
	 	4.	 	To provide access to and provision of relevant personnel to assist in technical and
commercial opportunities to secure business opportunities beneficial to both parties

	 
	 	5.	 	To respond promptly to Tokai Bussan’s reasonable requests for information to achieve
the goals of the Program

2. RELATIONSHIP OF THE PARTIES

	 	a)	 	Each party shall bear all costs, risks and liabilities incurred by it arising out of
its performance of this Agreement. Each party shall be responsible for its own costs of
graphic arts, printing, binding and delivery of any proposal. Neither party shall have
any right to any reimbursement, payment or compensation of any kind from the other during
the period up to the award of a contract by a Customer involving both parties unless
otherwise specifically agreed in writing by the parties.

	 
	 	b)	 	During the term of this agreement, Tokai Bussan and VIASPACE agree to work together
in good faith to pursue and achieve the objectives of “The Program”, as outlined above.

	 
	 	c)	 	This Teaming Agreement does not constitute, create, or give effect to a partnership,
joint venture, or any other type of formal business entity. Tokai Bussan and VIASPACE are
independent contractors. Neither is the agent of the other and neither may bind the
other.

	 
	 	d)	 	Both parties agree to honor the commercial confidentiality of the other party and
preserve their good name and reputation.

	 
	 	e)	 	Both parties agree to use good faith efforts to enter into a contractual relationship
in the event of one party identifying a project where the other party agrees to
participate. Such a contractual relationship will cover the specific and relevant
responsibilities of each party and define any remuneration or payments that may be agreed
as due from either party to the other.

This document remains the property of VIASPACE Inc.. All information contained herein is proprietary and confidential.

 

 

 

3 TERM AND TERMINATION

Expiration. Unless terminated earlier pursuant to this Article 3, this Agreement shall
continue in effect for three (3) years after the last signature date and shall thereafter
automatically renew for consecutive one year periods, unless either party sends notice of
termination at least 90 days prior to the end of the then current term or renewal term.

Termination for Cause. Either party may terminate this Agreement, at its option, by
written notice to the other party upon the occurrence of any of the following:

(a) The other party (i) seeks the liquidation, reorganization, dissolution or winding up of itself
(other than dissolution or winding up for the purposes of reconstruction or amalgamation) or the
composition or readjustment of all or substantially all of its debts, (ii) applies for or consents
to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator
of itself or of all or substantially all of its assets, (iii) makes a general assignment for the
benefit of its creditors, (iv) commences a voluntary case under the Bankruptcy Code, (v) files a
petition seeking to take advantage of any other law relating to bankruptcy, insolvency,
reorganization, winding-up or composition or readjustment of debts, or (vi) adopts any resolution
of its Board of Directors or stockholders for the purpose of effecting any of the foregoing; or,

(b) Upon or after the breach of any material agreement, condition or covenant of this Agreement, if
the breaching party has not cured such breach within thirty (30) days after written notice thereof
from the other party.

4  PUBLICITY AND NEWS RELEASES

No news release, public announcement, advertisement or publicity concerning this Agreement, any
proposals, any resulting contracts, or any subcontracts to be carried out hereunder, shall be
released by either party without the prior written approval of the other party, which shall not be
unreasonably withheld. The parties acknowledge the requirements of both parties to meet any of
their respective government’s reporting requirements, and agree to cooperate promptly in approval
of any disclosures required by their government entities.

5 PROPRIETARY INFORMATION

Information exchanged in connection with this Agreement shall, except as may otherwise be provided
in Article 6 below or in any contract they may be agreed between the parties resulting from this
Agreement, be treated as proprietary information which is subject to the existing non-disclosure
agreement between the parties.

This document remains the property of VIASPACE Inc.. All information contained herein is proprietary and confidential.

 

 

 

6  INTELLECTUAL PROPERTY 

6.1 For purposes of this Agreement, the term Intellectual Property shall mean patented and
unpatented inventions, mask works, copyrighted works, trade secrets, know-how and proprietary
information. Except as may be otherwise expressly provided elsewhere in this Agreement or in any
resulting contract, each party shall retain title to its own Intellectual Property, including
Intellectual Property possessed independently of the performance of this Agreement.

6.2 Subject to any rights of the Customer and except as may otherwise be expressly provided
elsewhere herein or in any resulting contract, each party shall retain title to any Intellectual
Property which is developed, authored, conceived or reduced to practice independently and solely by
that party during the performance of this Agreement. No license, express or implied, shall inure to
the benefit of the other party with respect to any such Intellectual Property, except as expressly
provided herein or in any resulting subcontract between the parties. Tokai Bussan recognizes the
extraordinary contribution due to the special relationship pre-existing between VIASPACE, the NASA
Jet Propulsion Lab (JPL) and the California Institute of Technology (Caltech). Tokai Bussan agrees
that any licenses required from JPL/Caltech for JPL/Caltech developed technology for any agreed
project will be negotiated by VIASPACE with JPL/Caltech.

	6.3	 	Unless expressly provided otherwise elsewhere in this Agreement or in any subsequent
subcontract between the parties resulting from this Agreement, if the parties jointly make or
conceive any invention or jointly create any mask work or copyrightable material (hereinafter
singularly and collectively “Joint IP”), then such Joint IP shall be owned jointly by the
parties unless one of the parties elects not to participate in such joint ownership. Subject
to the teaming obligations under this Agreement and, except as may otherwise be expressly
provided elsewhere herein or in any resulting contract, each owning party shall be free to
use, practice and license non-exclusively such Joint IP without in any way accounting to the
other owning party, except that each owning party agrees to use reasonable efforts to maintain
such Joint IP as confidential and proprietary in the same manner it treats its own
Intellectual Property of similar character except to the extent that the parties otherwise
mutually agree in connection with seeking to obtain statutory protection such as patent
protection. Procedures for seeking and maintaining statutory protection such as patents, mask
work registrations, or copyrights for Joint IP shall be mutually agreed in good faith by the
owning parties; provided that neither party shall unreasonably withhold its agreement to
seeking such protection. Any party which does not bear its proportionate share of expenses in
securing and maintaining statutory protection for Joint IP in any particular country or
countries shall surrender its
joint ownership under any resulting patents, mask work registrations and copyright
registrations in such country or countries.

This document remains the property of VIASPACE Inc.. All information contained herein is proprietary and confidential.

 

 

 

7  NOTICES

All notices, certificates, acknowledgments and other reports sent by a party under this Agreement,
shall be in writing and shall be deemed properly delivered when duly mailed by certified mail to
the other party at its address as follows, or to such other address as either party may, by written
notice, designate to the other.

	 	 	 
	Tokai Bussan Company Ltd.

	 	VIASPACE
	 
	 	 
	7-2-9, Todoroki, Setagaya-ku,

	 	Address 171 N. Altadena Drive
	Tokyo 158-0082, Japan

	 	Pasadena, CA 91105
	ATTN: Takashi Masuda, Managing Director

	 	ATTN: Mr. Skip Zeiler
	Tel: +81-03-3704-2581

	 	Tel: 626-768-3365
	Fax:

	 	Fax: 626-578-9269
	E-mail:

	 	E-mail: szeiler@VIASPACE.com

8  RELATIONSHIP

This Agreement is not intended by the parties to constitute or create a joint venture, pooling
arrangement, partnership, or formal business organization of any kind, and the rights and
obligations of the parties shall be only those expressly set forth herein. Neither party shall
have authority to bind the other except to the extent expressly authorized herein. VIASPACE and
Tokai Bussan shall remain as independent contractors at all times and neither party shall act as an
agent for the other.

9  ASSIGNMENT

Neither party may assign or transfer its interest hereunder or delegate its duties without the
prior written consent of the other party, which consent shall not be unreasonably withheld.
Notwithstanding the foregoing, either party may freely assign this Agreement to a successor in
connection with the sale of all or substantially all of its assets to which this Agreement relates,
or pursuant to a change of control, including a merger, consolidation or solvent reorganization.
Any purported assignment in violation of this Article 9 shall be void and of no effect.

10  MODIFICATIONS, WAIVERS

This Agreement shall not be amended or modified, nor shall any waiver of any right hereunder
be effective unless set forth in a document executed by duly authorized representatives of both parties. The waiver of any breach of any term, covenant or condition
herein contained shall not be deemed to be a waiver of such term, covenant or condition or any
subsequent breach of the same.

This document remains the property of VIASPACE Inc.. All information contained herein is proprietary and confidential.

 

 

 

11  SEVERABILITY

If any part, term, or provision of this Agreement shall be held void, illegal, unenforceable,
or in conflict with any law of the U.S. or Japanese Federal Government, or of the government of
the U,.S. State of California, having jurisdiction over this Agreement, the validity of the
remaining portions of provisions shall not be affected thereby. In the event that any part, term
or provision of this Agreement is held void, illegal, unenforceable, or in conflict with any law of
the U.S. or Japanese Federal Government, or the U.S. State of California, having jurisdiction over
this Agreement, the parties agree, to the extent possible, to include a replacement provision,
construed to accomplish its originally intended effect, that does not violate such law or
regulation.

12  LIMITATION OF LIABILITY

Except for Liability arising from a breach of Articles 5 or 6 (Proprietary Information and
Intellectual Property), IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR
CONSEQUENTIAL, INCIDENTAL, SPECIAL (INCLUDING MULTIPLE OR PUNITIVE) OR OTHER INDIRECT DAMAGES THAT
ARE CLAIMED TO BE INCURRED BY THE OTHER PARTY WHETHER SUCH CLAIM ARISES UNDER CONTRACT, TORT
(INCLUDING STRICT LIABILITY) OR OTHER THEORY OF LAW.

13  TAXES

Each party shall be responsible for its respective present and future taxes, duties, tariffs,
fees, imports, and other charges, including, but not limited to, income, excise, import, purchase,
sales, use, turnover, added value, gross receipts, gross wages, and similar assessments imposed
upon such party by any taxing authority as a result of the performance of the party’s duties and
responsibilities hereunder.

14  GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of Singapore,
without regard to the conflicts of law principles thereof. Both parties agree that any disputes
related to the subject matter of this Agreement shall be subject to and finally resolved by
arbitration in accordance with the Rules of Arbitration as administered by the International
Chamber of Commerce, International Court of Arbitration by a panel of 3 arbitrators. The
arbitration shall be convened in the city of
the respondent. In any action to enforce rights under this Agreement, the prevailing party shall
be entitled to recover costs and reasonable attorneys’ fees.

This document remains the property of VIASPACE Inc.. All information contained herein is proprietary and confidential.

 

 

 

	 	 	 
	Signed for Tokai Bussan Company LTD

	 	Signed for VIASPACE Inc
	 

	 	 
	 
	 	 
	Signature /s/ Takashi Masuda

	 	Signature /s/ Carl Kukkonen
	 
	 	 

		 	 
	NAME: Takashi Masuda

	 	NAME: Carl Kukkonen
	 
	 	 
	Title: Managing Corporate Officer

	 	Title: CEO
	 
	 	 
	Date: March 15, 2007

	 	Date: March 21, 2007

This document remains the property of VIASPACE Inc.. All information contained herein is proprietary and confidential.

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