Document:

EX-10.2

Execution Copy

SECURITY AGREEMENT

VIASPACE, INC., a Nevada corporation, whose principal place of business and mailing address is
2102 Business Center Drive, suite 130, Irvine, CA 92612 (hereinafter “Debtor”), hereby
grants to SUNG HSIEN CHANG (hereinafter sometimes “Noteholder” or “Secured Party”)
a continuing security interest in and to, and a lien on, and hereby assigns to Secured Party as
collateral, all of the “Collateral”, as defined in Section 2 of this Agreement. In
addition, Debtor and Secured Party hereby agree as follows:

1. OBLIGATIONS: The security interest hereby granted shall secure the full, prompt and complete
payment and performance of all of the payment obligations of Debtor to pay principal, interest, or
other amounts (the “Secured Obligations”) under the Secured Promissory Note dated as of the
14th day of May 2010 issued by Debtor in favor of Noteholder (as the same may be amended, renewed,
consolidated, restated or replaced from time to time, the “Secured Note”). Capitalized
terms used herein but not otherwise defined herein shall have the meanings ascribed to such terms
in the Secured Note.

2. COLLATERAL: The collateral in which a security interest is hereby granted comprises all of the
assets and property, real and personal, tangible and intangible, of Debtor, whether now owned or
existing or hereafter arising or acquired, regardless of where any such property is located,
including all of Debtor’s rights, titles and interests in and to the following, whether now owned
or existing or hereafter arising or acquired, regardless of where any such property is located,
excluding, however, shares of stock or other equity owned by Debtor in Direct
Methanol Fuel Cell Corporation (DMFCC) and Ionfinity LLC (all of such assets and all of the below
described assets being, collectively, the “Collateral”):

(a) all Accounts, all Inventory, all Equipment, all trademarks, all General Intangibles, and
all Investment Property (each as defined in Section 3 of this Agreement);

(b) without limiting the description of the property or any rights or interests in the
property described above in this definition of Collateral, all goods, deposit accounts,
instruments, chattel paper (including tangible chattel paper and electronic chattel paper),
documents, securities, money, cash, letters of credit, letter-of-credit rights, promissory notes,
warrants, dividends, distributions, the commercial tort claims listed on Exhibit B attached
to this Agreement, contracts, agreements, contract rights and other property owned by Debtor or in
which Debtor has any rights or an interest, including those which are now or hereafter in the
possession or control of Secured Party or in transit by mail or carrier to or in the possession of
any third party acting on behalf of Secured Party, without regard to whether Secured Party received
the same in pledge, for safekeeping, as agent for collection or transmission or otherwise or
whether Secured Party had conditionally released the same, all rights to payment from, and all
claims against Secured Party, all as-extracted collateral, leases, lease contracts, lease
agreements, and proceeds of a letter of credit;

(c) without limiting the description of the property or any rights or interests in the
property described above in this definition of Collateral, all supporting obligations;

(d) without limiting the description of the property or any rights or interests in the
property described above in this definition of Collateral, all farm products including all crops
grown, growing, or to be grown, and all livestock and the born and unborn offspring thereof;

(e) without limiting the description of the property or any rights or interests in the
property described above in this definition of Collateral, all minerals or the like and accounts
resulting from sales at the wellhead or minehead, as well as all standing timber which is to be cut
and removed under a conveyance or contract for sale; and

(f) all products and cash proceeds and noncash proceeds (including all rents, revenues,
issues, and profits arising from the sale, lease, license, encumbrance, collection, or any other
temporary or permanent disposition of any and all of the property described above in this
definition of Collateral or any interest therein) of any and all of the property described above in
this definition of Collateral, and all additions, accessions, attachments, parts, appurtenances and
improvements to, replacements and substitutions of, and all supporting obligations for, guaranties
of, insurance or condemnation proceeds of, and documents covering, the property described above in
this definition of Collateral, all sales of accounts, all tort or other claims against third
parties arising out of damage or destruction of property described above in this definition of
Collateral, and all property received wholly or partly in trade or exchange for property described
above in this definition of Collateral.

3. DEFINITIONS: As used herein, the following capitalized terms will have the following meanings:

(a) “Accounts” means all accounts, accounts receivable, health-care-insurance
receivables, credit card receivables, contract rights, instruments, documents, chattel paper, tax
refunds from foreign, federal, state or local governments and all obligations in any form including
those arising out of the sale or lease of goods or the rendition of services by Debtor; all
guaranties, letters of credit and other security and supporting obligations for any of the above;
all merchandise returned to or reclaimed by Debtor; and all books and records (including computer
programs, tapes and data processing software) evidencing an interest in or relating to the above;
all winnings in a lottery or other game of chance operated by a governmental unit or entity
licensed to operate such game by a governmental unit and all rights to payment therefrom; and all
“accounts” as the same is now or hereinafter defined in the Georgia UCC (as hereafter defined).

(b) “Equipment” means all goods (other than Inventory, farm products or consumer
goods), machinery, machine tools, equipment, fixtures, office equipment, furniture, furnishings,
motors, motor vehicles, tools, dies, parts, jigs (including each of the items of equipment set
forth on any schedule which is either now or in the future attached to Secured Party’s copy of this
Agreement), and all attachments, accessories, accessions, replacements, substitutions, additions
and improvements thereto, all supplies used or useful in connection therewith, and all “equipment”
as the same is now or hereinafter defined in the Georgia UCC.

(c) “General Intangibles” means all general intangibles, choses in action, causes of
action, obligations or indebtedness owed to Debtor from any source whatsoever, payment intangibles,
software and all other intangible personal property of every kind and nature (other than Accounts)
including patents, trademarks, trade names, service marks, copyrights, patent applications,
trademark or service mark applications, copyright applications and goodwill, trade secrets,
licenses, franchises, rights under agreements, tax refund claims, insurance refunds, insurance
refund claims, pension plan refunds, pension plan reversions, and all books and records including
all computer programs, disks, tapes, printouts, customer lists, credit files and other business and
financial records, the equipment containing any such information, and all “general intangibles” as
the same is now or hereinafter defined in the Georgia UCC.

(d) “Inventory” means all goods (other than Equipment, farm products or consumer
goods), supplies, wares, merchandises and other tangible personal property, including raw
materials, work in process, supplies and components, and finished goods, whether held for sale or
lease, or furnished or to be furnished under any contract for service, or used or consumed in
business, and also including products of and accessions to inventory, packing and shipping
materials, all documents of title, whether negotiable or non-negotiable, representing any of the
foregoing, and all “inventory” as the same is now or hereinafter defined in the Georgia UCC.

(e) “Investment Property” means all securities, whether certificated or
uncertificated, financial assets, security entitlements, securities accounts, commodity contracts
or commodity accounts; and all “investment property” as the same is now or hereafter defined in the
Georgia UCC; excluding, however, shares of stock or other equity owned by Debtor in
Direct Methanol Fuel Cell Corporation (DMFCC) and Ionfinity LLC.

(f) "Trademarks” shall mean all Trademarks used and/or registered by Debtor as set
forth in the Schedule attached as Exhibit C.

(g) “Uniform Commercial Code” means the Uniform Commercial Code as adopted in each
applicable jurisdiction, as amended or superceded from time to time. The “Georgia UCC”
means the Uniform Commercial Code, as adopted in Georgia, as amended or superceded from time to
time.

All of the uncapitalized terms contained in this Agreement which are now or hereafter defined
in the Georgia UCC will, unless the context expressly indicates otherwise, have the meanings
provided for now or hereafter in the Georgia UCC, as such definitions may be enlarged or expanded
from time to time by amendment or judicial decision.

4. REPRESENTATIONS AND WARRANTIES: Debtor represents and warrants to Noteholder that the following
statements are, and will continue as long as the Note is outstanding or any Secured Obligations
unpaid, to be, true:

(a) Debtor is a corporation with its chief executive office and mailing address located at the
address set forth on Exhibit A and is organized in the State of Nevada, with an
organizational number as set forth on Exhibit A. Debtor further warrants that its exact
legal name is set forth in the first paragraph of this Agreement. Debtor’s federal tax
identification number is as set forth on Exhibit A. Exhibit A attached to this
Agreement lists the location of any and all of the Collateral that consists of documents,
equipment, instruments, inventory, or tangible chattel;

(b) Debtor is, and as to any property which at any time forms a part of the Collateral, shall
be, the owner of each and every item of the Collateral, or otherwise have the right to grant a
security interest in the Collateral, free from any lien or security interest, except for the liens
and security interests (i) in favor of Secured Party, (ii) created by Secured Party in his
individual capacity against the Collateral, (iii) of which Secured Party has Knowledge as of the
Closing, but which are unknown to Debtor or any Affiliate thereof; or (iv) claims asserted by Frank
Steele.

(c) Debtor has full right to grant the security interest hereby granted. Debtor shall defend
the Collateral and each and every part thereof against all claims of all third parties at any time
claiming any of the Collateral or claiming any interest therein adverse to Secured Party except for
the lien created by this Agreement and claims by third parties regarding the Collateral to the
extent caused by Secured Party in his individual capacity;

(d) as to any Accounts which are or become part of the Collateral, each such Account is a
valid Account and that no such Account shall be sold, assigned, transferred, discounted,
hypothecated, or otherwise subjected to any lien or security interest, and Debtor shall defend such
Accounts against all claims of any third party whosoever;

(e) if any of the Collateral is or will be attached to real estate in such a manner as to
become a fixture under applicable state law, Debtor will secure from the lien holder or the party
in whose favor it is or, at Secured Party’s option, will become so encumbered a written consent and
subordination to the security interest hereby granted or a written disclaimer of any interest in
the Collateral, in such form as is acceptable to Secured Party;

(f) all trade names, assumed names, fictitious names and other names used by Debtor during the
five year period preceding the date of this Agreement are set forth on Exhibit A, and
Debtor has not, during the preceding five year period, except as may be set forth on Exhibit
A, acquired any of its assets in any bulk transfer;

(g) except as set forth on Exhibit B, Debtor has no rights, titles or interests in, or
with respect to, any investment property, deposit accounts, letters of credit, electronic chattel
paper, or any instruments, including promissory notes, except checks received in the ordinary
course of business in payment of Accounts.

5. DEBTOR’S RESPONSIBILITIES:

(a) Until the Secured Obligations are fully paid, performed and satisfied and this Agreement
is terminated, Debtor will:

(i) furnish to Secured Party in writing upon Secured Party’s reasonable request (but if no
Event of Default has occurred and is continuing, no more frequently than quarterly) a current list
of all Collateral for the purpose of identifying the Collateral and, further, execute and deliver
such supplemental instruments, in the form of assignments or otherwise, as Secured Party shall
reasonably request for the purpose of confirming and perfecting Secured Party’s security interest
in any or all of the Collateral, or as is reasonably necessary to provide Secured Party with
control over the Collateral or any portion thereof;

(ii) at its expense and upon request of Secured Party (but if no Event of Default has occurred
and is continuing, no more frequently than quarterly), furnish copies of invoices issued by Debtor
in connection with the Collateral, furnish certificates of insurance evidencing insurance on the
Collateral in accordance with the Secured Note, furnish proof of payment of taxes and assessments
on the Collateral, make available to Secured Party any and all of Debtor’s books, records, written
memoranda, correspondence, purchase orders, invoices and other instruments or writings that in any
way evidence or relate to the Collateral;

(iii) maintain all Inventory in good and salable condition exclusive of slow-moving, obsolete
or damaged Inventory for which reserves or write-downs have been made on Debtor’s books and records
in the ordinary course of business and will handle, maintain and store the Collateral in a safe and
careful manner in material compliance with all applicable laws, rules, regulations, ordinances and
governmental orders;

(iii) notify Secured Party promptly in writing of any information which Debtor has or may
receive which might in any way materially adversely affect the value of the Collateral or the
rights of Secured Party with respect thereto;

(iv) notify Secured Party at least fifteen days in advance in writing of any change in
Debtor’s (A) chief executive office, principal place of business, or other places of business, or
the opening of any new places of business, (B) exact legal name as set forth in the first paragraph
of this Agreement, (C) names from those set forth on Exhibit A, or (D) the adoption by
Debtor of trade names, assumed names or fictitious names;

(v) pay all costs of filing any financing, continuation or termination statements with respect
to the security interest created hereby;

(vii) pay all expenses and reasonable attorneys’ fees of Secured Party incurred by Secured
Party in the exercise (including enforcement) of any of Secured Party’s rights or remedies under
this Agreement or applicable law; and Debtor agrees that said expenses and fees shall constitute
part of the Secured Obligations and be secured by the Collateral;

(viii) maintain possession of all tangible Collateral at the locations set forth on
Exhibit A and not remove the Collateral from those locations (except for Inventory in
transit, sales of Inventory, permitted use of other Collateral and proceeds thereof in the ordinary
course of business and disposal of Equipment [as permitted by the Transaction Documents]) without
giving Secured Party at least 15 days prior notice of such action and complying with the other
terms of this Agreement; provided that such location is within the [continental United States];

(ix) promptly notify Secured Party in writing of any contract with respect to which the
account debtor is (A) a United States Account Debtor, (B) any state, city, county or other
governmental authority (other than a United States Account Debtor) or any department, agency or
instrumentality of any of them, or any foreign government or instrumentality thereof, if at any
time, the account debtor owes Debtor, in the aggregate, in excess of $20,000, or (C) a business
which is located in a foreign country;

(vi) take any other and further action reasonably necessary or desirable as requested by
Secured Party to grant Secured Party control over the Collateral, including the execution and/or
authentication of any assignments or third party agreements; upon and during the continuation of an
Event of Default, to obtain delivery of the Collateral to the possession of Secured Party; or to
obtain acknowledgments of the lien of Secured Party from third parties in possession of any
Collateral. Debtor agrees to consent to and authorize any third party in an authenticated record
or agreement between Debtor, Secured Party, and the third party, including depository institutions,
securities intermediaries, and issuers of letters of credit or other supporting obligations to
accept direction from Secured Party regarding the maintenance and disposition of the Collateral and
the products and proceeds thereof, and to enter into agreements with Secured Party regarding same,
without further consent of Debtor;

(xi) if Debtor shall at any time hold or acquire a commercial tort claim, promptly notify
Secured Party in a writing signed by Debtor of the particulars thereof and grant to Secured Party
in such writing a security interest therein and in the proceeds thereof, all upon the terms of this
Agreement, with such writing to be in form and substance satisfactory to Secured Party;

(xii) deliver to Secured Party, promptly on Secured Party’s request, any instrument (whether
negotiable or non-negotiable) or any chattel paper that evidences any amount payable under or in
connection with any of the Collateral, which, in each instance, is duly indorsed to Secured Party
in a manner acceptable to it, to be held as Collateral pursuant to this Agreement;

(xiii) not, without the prior written consent of Secured Party, change the form of or the
jurisdiction of Debtor’s organization;

(xiv) not back date, post date or redate any invoice issued by Debtor with respect to any
Account; and

(xv) on Secured Party’s request, deliver to Secured Party any and all evidences of ownership
of the Collateral, including any certificates of title and applications for title pertaining to
Debtor’s motor vehicles so that Secured Party may cause its security interest and lien to be noted
on such certificates of title. Debtor will not permit any of the Equipment to become an accession
to other personal property not constituting part of the Collateral.

(b) To protect, perfect, or enforce, from time to time, Secured Party’s rights or interests in
the Collateral, Secured Party may, in its discretion (but without any obligation to do so), (i)
discharge any liens or security interests (other than those created by this Agreement) at any time
levied or placed on the Collateral, (ii) pay any insurance to the extent Debtor has failed to
timely pay the same, (ii) maintain guards, if an Event of Default has occurred and is continuing,
(A) at Debtor’s chief executive offices or (B) where any Collateral constituting documents,
equipment, instruments, inventory, or tangible chattel paper with a value in excess of $10,000 is
located, and (iv) obtain any record from any service bureau and pay such service bureau the cost
thereof. All costs and expenses incurred by Secured Party in exercising its discretion under this
subparagraph (b) will be part of the Secured Obligations, payable on Secured Party’s demand and
secured by the Collateral.

(c) Debtor shall remain liable under any contracts and agreements included in the Collateral
to perform all of its duties and obligations thereunder to the same extent as if this Agreement had
not been executed, and Secured Party shall not have any obligation or liability under such
contracts and agreements by reason of this Agreement or otherwise.

6. ACCOUNTS:

(a) Debtor hereby agrees that Secured Party may, upon the occurrence and during the
continuation of an Event of Default, serve written notice on Debtor instructing Debtor to deliver
to Secured Party all subsequent payments on Accounts which Debtor shall do until notified
otherwise.

(b) Secured Party may, upon the occurrence and during the continuation of an Event of Default,
notify the account debtor(s) of its security interest and instruct such account debtor(s) to make
further payments on Accounts to Secured Party instead of to Debtor.

(c) Secured Party may also, at any time and from time to time, in its own name or in the name
of others, periodically communicate with Debtor’s account debtors and other obligors to verify with
them, to Secured Party’s satisfaction, the existence, amount and terms of any sums owed by such
account debtors or other obligors to Debtor and the nature of any such account debtor’s or other
obligor’s relationship with Debtor. In addition, Secured Party may also, upon the occurrence or
during the continuation of an Event of Default, communicate with Debtor’s customers to verify with
them, to Secured Party’s satisfaction, the existence and the nature of any such customer’s
relationship with Debtor.

(d) Secured Party may, upon the occurrence and during the continuation of an Event of Default,
serve written notice upon Debtor that all subsequent billings or statements of account rendered to
any account debtor shall bear a notation directing the account debtor(s) to make payment directly
to Secured Party. Any payment received by Secured Party pursuant to this Section shall be retained
in a separate non-interest-bearing account as security for the payment of all Secured Obligations.

7. POWER OF ATTORNEY: Debtor hereby makes, constitutes and appoints Secured Party its true and
lawful attorney in fact to act with respect to the Collateral in any transaction, legal proceeding,
or other matter in which Secured Party is acting pursuant to this Agreement. Debtor: (i)
specifically authorizes Secured Party as its true and lawful attorney in fact to execute and/or
authenticate on its behalf and/or file financing statements reflecting its security interest in the
Collateral and any other documents reasonably necessary or desirable to perfect or otherwise
further the security interest granted herein; (ii) specifically authorizes Secured Party to act as
its true and lawful attorney in fact to execute and/or authenticate any third party agreements or
assignments to grant Secured Party control over the Collateral, including third party agreements
between Debtor, Secured Party, and depository institutions, securities intermediaries, and issuers
of letters of credit or other supporting obligations which third party agreements direct the third
party to accept direction from Secured Party regarding the maintenance and disposition of the
Collateral and the products and proceeds thereof, such power of attorney to be exercised after the
occurrence and during the continuation of an Event of Default or after Debtor’s failure to so
execute and/or authenticate after Secured Party’s request therefor after the occurrence and during
the continuation of an Event of Default; and (iii) specifically authorizes Secured Party, upon the
occurrence and during the continuation of an Event of Default, to issue, without further consent of
Debtor, all (a) instructions to any bank at which any deposit account is maintained with respect to
all existing or future funds held in such deposit account and (b) exclusive entitlement orders to
all securities intermediaries with respect to all existing or future investment property held in
any securities account maintained by such securities intermediary. Debtor recognizes and agrees
that this power of attorney is a power coupled with an interest and shall be irrevocable. Debtor
ratifies and confirms all actions taken by the Secured Party or its agents pursuant to this power
of attorney.

8. DEFAULT: If an Event of Default occurs and is continuing, then, in any such event, Secured
Party may, without further notice to Debtor, at Secured Party’s option, take all actions permitted
under the Secured Note. In addition, Secured Party may resort to the rights and remedies available
at law, in equity and under the Transaction Documents, including the rights and remedies of a
secured party under the Uniform Commercial Code, including the right (i) to enter any premises of
Debtor, with or without legal process and take possession of the Collateral and remove it and any
records pertaining thereto and/or remain on such premises and use it for the purpose of collecting,
preparing and disposing of the Collateral; (ii) to ship, reclaim, recover, store, finish, maintain
and repair the Collateral; and (iii) to sell the Collateral at public or private sale in a manner
that complies in all material respects with all applicable laws, and Debtor will be credited with
the net proceeds of such sale, after payment in full of all Obligations, only when they are
actually received by Secured Party; any requirement of reasonable notice of any disposition of the
Collateral will be satisfied if such notice is sent to Debtor 10 days prior to such disposition.
Debtor will, upon request, assemble the Collateral and any records pertaining thereto and make them
available at a place designated by Secured Party. Moreover, Secured Party may, without notice to
Debtor, apply for and have a receiver appointed under state or federal law by a court of competent
jurisdiction in any action taken by Secured Party to enforce its rights and remedies under this
Agreement and, as applicable, Secured Note and the other Transaction Documents in order to manage,
protect, preserve, and sell and otherwise dispose of all or any portion of the Collateral and/or
continue the operation of the business of Debtor, and to collect all revenues and profits thereof
and apply the same to the payment of all expenses and other charges of such receivership, including
the compensation of the receiver, and to the payment of the Secured Obligations until a sale or
other disposition of such Collateral is finally made and consummated. Secured Party may use, in
connection with any assembly or disposition of the Collateral, any trademark, tradename,
tradestyle, copyright, patent right, trade secret or technical process used or utilized by Debtor.
No remedy set forth herein is exclusive of any other available remedy or remedies, but each is
cumulative and in addition to every other remedy given under this Agreement, the Secured Note or
now or hereafter existing at law or in equity or by statute. Secured Party may proceed to protect
and enforce its rights by an action at law, in equity or by any other appropriate proceedings. No
failure on the part of Secured Party to enforce any of the rights hereunder shall be deemed a
waiver of such rights or of any Event of Default and no waiver of any Event of Default will be
deemed to be a waiver of any subsequent Event of Default. Moreover, Debtor acknowledges and agrees
that Secured Party shall have no obligation to, and Debtor hereby waives to the fullest extent
permitted by law any right that it may have to require Secured Party to, (a) clean up or otherwise
prepare any of the Collateral for sale, (b) pursue any third party to collect any of the
Obligations, or (c) exercise collection remedies against any third party obligated on the
Collateral. Secured Party’s compliance with applicable local, state or federal law requirements,
in addition to those imposed by the Uniform Commercial Code, in connection with a disposition of
any or all of the Collateral will not be considered to adversely affect the commercial
reasonableness of any disposition of any or all of the Collateral under the Uniform Commercial
Code.

9. GENERAL PROVISIONS:

(a) All rights of Secured Party shall inure to the benefit of its successors, assigns and
affiliates and all obligations of Debtor shall bind the successors and assigns of Debtor.

(b) This Agreement, the Secured Note and the other Transaction Documents contain the entire
agreement of the parties with respect to the subject matter of this Agreement and supercede all
previous understandings and agreements relating to the subject matter hereof, and no oral agreement
whatsoever, whether made contemporaneously herewith or hereafter shall amend, modify or otherwise
affect the terms of this Agreement.

(c) All rights and liabilities hereunder shall be governed and limited by and construed in
accordance with the local laws of the State of Georgia (without regard to Georgia conflicts of law
principles).

(d) If any provision of this Agreement is found invalid by a court of competent jurisdiction,
the invalid term will be considered excluded from this Agreement and will not invalidate the
remaining provisions of this Agreement.

(e) Debtor hereby authorizes Secured Party to file a copy of this Agreement as a financing
statement with government authorities necessary to perfect Secured Party’s security interest in the
Collateral. Debtor hereby irrevocably authorizes Secured Party at any time and from time to time
to file in any filing office in any jurisdiction any initial financing statements and amendments
thereto that (i) indicate the Collateral (A) as all assets of Debtor, whether now owned or
hereafter acquired or arising, and all proceeds and products thereof and (B) as being of an equal
or lesser scope or with greater detail, and (ii) provide any other information required by Part 5
of Article 9 of the Uniform Commercial Code for the sufficiency or filing office acceptance of any
financing statement or amendment, including whether Debtor is an organization, the type of
organization and any organizational identification number issued to Debtor. Debtor hereby
irrevocably authorizes Secured Party at any time and from time to time to correct or complete, or
to cause to be corrected or completed, any financing statements, continuation statements or other
such documents as have been filed naming Debtor as debtor and Secured Party as secured party.
Secured Party is hereby authorized to give notice to any creditor, landlord or any other person as
may be necessary or desirable under applicable laws to evidence, protect, perfect, or enforce the
security interest granted to Secured Party in the Collateral.

(f) Secured Party shall have no duty of care with respect to the Collateral except that
Secured Party shall exercise reasonable care with respect to the Collateral in Secured Party’s
custody. Secured Party shall be deemed to have exercised reasonable care if (A) such property is
accorded treatment substantially equal to that which Secured Party accords its own property or (B)
Secured Party takes such action with respect to the Collateral as Debtor shall reasonably request
in writing. Secured Party will not be deemed to have, and nothing in this subparagraph (g) may be
construed to deem that Secured Party has, failed to exercise reasonable care in the custody or
preservation of Collateral in its possession merely because either (1) Secured Party failed to
comply with any request of Debtor or (2) Secured Party failed to take steps to preserve rights
against any third party in such property. Debtor agrees that Secured Party has no obligation to
take steps to preserve rights against any prior parties.

(g) Any capitalized term used but not defined herein shall have the meaning ascribed thereto
in the Secured Note. The definition of any document, instrument or agreement includes all
schedules, attachments and exhibits thereto and all renewals, extensions, supplements, restatements
and amendments thereof. All schedules, exhibits or other attachments to this Agreement are
incorporated into, and are made and form an integral part of, this Agreement for all purposes. As
used in this Agreement, “hereunder,” “herein,” “hereto,” “this Agreement” and words of similar
import refer to this entire document; “including” is used by way of illustration and not by way of
limitation, unless the context clearly indicates the contrary; the singular includes the plural and
conversely; and any action required to be taken by Debtor is to be taken promptly, unless the
context clearly indicates the contrary.

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

This Security Agreement (as used hereinabove, this “Agreement”) is made and dated as
of the 14th day of May 2010.

	 	 	 
	VIASPACE, INC.	 	SUNG HSIEN CHANG
	By:

	 	By:
	 

	 	 
	Name:     

Title:      

	 	

(a)

EXHIBIT A

Debtor’s Organizational Identification

VIASPACE Inc. incorporated in Nevada

Debtor’s Federal Tax Identification Number:

76-0742386

Debtor’s Chief Executive Office and Mailing Address:

VIASPACE Inc.

2102 Business Center Dr., Suite 130

Irvine, CA 92612

Debtor’s Offices or Locations Where any Collateral is Located:

VIASPACE Inc.

2102 Business Center Dr., Suite 130

Irvine, CA 92612

Trade Names, Assumed Names and Fictitious Names:

A. Currently in Use

None

B. Used During Last Five Years but not Currently in Use

None

Assets Acquired in Bulk Transfer:

Section 1.01

None

1

EXHIBIT B

Commercial Tort Claims:

None

Investment Property:

	 	1.	 	Common and Preferred Stock in Direct Methanol Fuel Cell Corporation

	 	2.	 	Membership Interests in Ionfinity LLC

	 	3.	 	Common Stock in VIASPACE Green Energy, Inc.

	 	4.	 	Merrill Lynch Bank Account at Merrill Lynch, 4141 Inland Empire Blvd., Ontario, CA
91764

Electronic Chattel Paper:

None

Instruments:

None

Deposit Accounts:

Merrill Lynch

4141 Inland Empire Blvd.

Ontario, CA 91764

Other Accounts used in operations

Letters of Credit:

None

2

EXHIBIT C

Trademarks

“VIASPACE”

3EX-10.3

Execution Copy

STOCK PLEDGE AGREEMENT

THIS STOCK PLEDGE AGREEMENT (this “Agreement”) is dated as of May 14, 2010, by and between
VIASPACE, INC., a Nevada corporation (the “Pledgor”), and SUNG HSIEN CHANG (the “Noteholder”).

W I T N E S S E T H:

WHEREAS, pursuant to a Secured Promissory Note, dated as of the 14th day of May, 2010 (as the
same may be amended, modified or supplemented from time to time, the “Secured Note”) issued by the
Pledgor in favor of the Noteholder; and

WHEREAS, the Pledgor agreed to secure its obligations under the Secured Note in accordance
with the terms of this Agreement and the other applicable Security Documents (as defined in the
Secured Note) .

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

1. Definitions. Capitalized terms used herein but not otherwise defined shall have the
meanings ascribed to such terms in the Secured Note.

2. Pledge and Grant of Security Interest. To secure the prompt payment and performance in
full when due, whether by lapse of time or otherwise, of the Secured Obligations (as defined in
Section 3 hereof), Pledgor hereby pledges and assigns to the Noteholder and grants to the
Noteholder, a continuing security interest in any and all right, title and interest of Pledgor in
and to the following, whether now owned or existing or owned, acquired or arising hereafter
(collectively, the “Pledged Collateral”):

(a) Pledged Shares. All of the issued and outstanding shares of capital stock (the
“Shares”) of Viaspace Green Energy, Inc., a company organized under the laws of the British Virgin
Islands (the “Subsidiary”) issued to or otherwise in which rights are held by Pledgor (all
certificates representing such shares and all options and other rights, contractual or otherwise,
with respect thereto, collectively the “Pledged Shares”). In no event shall Pledgor cause,
authorize, approve or permit Subsidiary to issue, sell, convey, transfer, grant or otherwise
encumber or otherwise grant any right or other Lien in or on any of its Shares in favor of any
Person without the prior written consent of Noteholder.

(b) Additional Shares. All of the issued and outstanding shares of capital stock held
by Pledgor of any subsidiary organized in a jurisdiction outside of the United States and that
number of issued and outstanding shares of capital stock held by Pledgor of any subsidiary
organized in a jurisdiction inside the United States, which is hereafter formed or acquired by
Pledgor or is a successor to Pledgor, including, without limitation, the certificates representing
such shares.

(c) RESERVED

(d) Proceeds. All proceeds and products of the foregoing (other than dividends and
interest permitted to be received, retained and used by Pledgor pursuant to Section 7(f) hereof),
however and whenever acquired and in whatever form.

Without limiting the generality of the foregoing, it is hereby specifically understood and
agreed that Pledgor may, with the prior written consent of the Noteholder, from time to time
hereafter deliver additional shares of stock to the Noteholder as collateral security for the
Secured Obligations. Upon delivery to the Noteholder, such additional shares of stock shall be
deemed to be part of the Pledged Collateral and shall be subject to the terms of this Agreement
whether or not Schedule 1 is amended to refer to such additional shares.

3. Security for Secured Obligations. The security interest created hereby in the Pledged
Collateral constitutes continuing collateral security for all money which Pledgor is or at any
time may become actually or contingently liable to pay to or for the account of Noteholder for any
reason whatever under the Secured Note (collectively, the “Secured Obligations”).

4. Delivery of the Pledged Collateral. Pledgor hereby agrees that:

(a) Certificates. Pledgor shall deliver to the Noteholder (i) simultaneously with or
prior to the execution and delivery of this Agreement, all certificates representing the Pledged
Shares and (ii) promptly upon the receipt thereof by or on behalf of Pledgor, all other
certificates and instruments constituting Pledged Collateral. Prior to delivery to the Noteholder,
all such certificates and instruments constituting Pledged Collateral shall be held in trust by
Pledgor for the benefit of the Noteholder pursuant hereto. All such certificates shall be
delivered in suitable form for transfer by delivery or shall be accompanied by duly executed
instruments of transfer or assignment in blank, in form provided in Schedule 2 attached
hereto.

(b) Additional Securities. If Pledgor shall receive by virtue of its being or having
been the owner of any Pledged Collateral, any (i) stock certificate, including without limitation,
any certificate representing a stock dividend or distribution in connection with any increase or
reduction of capital, reclassification, merger, consolidation, sale of assets, combination of
shares, stock splits, spin-off or split-off, promissory notes or other instrument; (ii) option or
right, whether as an addition to, substitution for, or an exchange for, any Pledged Collateral or
otherwise; (iii) dividends payable in securities; or (iv) distributions of securities in connection
with a partial or total liquidation, dissolution or reduction of capital, capital surplus or
paid-in surplus, then Pledgor shall receive such stock certificate, instrument, option, right or
distribution in trust for the benefit of the Noteholder, shall segregate it from Pledgor’s other
property and shall deliver it forthwith to the Noteholder in the exact form received together with
any necessary endorsement and/or appropriate stock power duly executed in blank substantially in
the form provided in Schedule 2, to be held by the Noteholder as Pledged Collateral and as
further collateral security for the Secured Obligations.

(c) Financing Statements. Pledgor hereby authorizes the Noteholder to file such UCC
financing statements the Noteholder may reasonably deem appropriate in order to perfect and protect
the security interest created hereby in the Pledged Collateral.

5. Representations and Warranties. Pledgor hereby represents and warrants to the
Noteholder, that so long as the Secured Note is in effect or any amounts payable thereunder shall
remain outstanding:

(a) Authorization of Pledged Shares. The Pledged Shares are duly authorized and
validly issued, are fully paid and nonassessable and are not subject to the preemptive rights of
any person or entity. All other shares of stock constituting Pledged Collateral will be duly
authorized and validly issued, fully paid and nonassessable and not subject to the preemptive
rights of any person or entity. Pledgor owns the capital stock of the corporations listed on
Schedule I attached hereto as and to the extent so described therein.

(b) Title. Pledgor has good and indefeasible title to the Pledged Collateral and will
at all times be the legal and beneficial owner of the Pledged Collateral free and clear of any lien
or other encumbrance, except for any security interests in favor of Noteholder. There exists no
“adverse claim” within the meaning of Section 8-302 of the Uniform Commercial Code as in effect in
the State of Georgia (the “UCC”) with respect to the Pledged Shares.

(c) Exercising of Rights. The exercise by the Noteholder of its rights and remedies
hereunder does not violate any law or governmental regulation or any material contractual
restriction binding on or affecting Pledgor or any of its property.

(d) Pledgor’s Authority. No authorization, approval or action by, and no notice or
filing with any governmental authority or with the issuer of any Pledged Stock is required either
(i) for the pledge made by Pledgor or for the granting of the security interest by Pledgor pursuant
to this Agreement; or (ii) for the exercise by the Noteholder of its rights and remedies hereunder
(except as may be required by laws affecting the offering and sale of securities).

(e) Security Interest/Priority. This Agreement creates a valid security interest in
favor of the Noteholder in the Pledged Collateral. The taking possession by the Noteholder of the
certificates representing the Pledged Shares and all other certificates and instruments
constituting Pledged Collateral will perfect and establish the first priority of the Noteholder’s
security interest in the Pledged Shares and in all other Pledged Collateral represented by Pledged
Shares and instruments securing the Secured Obligations. Except as set forth in this Section 5(e),
no action is necessary to perfect or otherwise protect such security interest in the Pledged Shares
and Pledged Collateral represented by certificates.

6. Covenants. Pledgor hereby covenants that so long as the Secured Note is in effect or
any Secured Obligations remains unpaid, Pledgor shall:

(a) Books and Records. Mark its books and records (and shall cause the issuer of the
Pledged Shares to mark its books and records) to reflect the security interest granted to the
Noteholder pursuant to this Agreement.

(b) Defense of Title. Warrant and defend title to and ownership of the Pledged
Collateral at its own expense against the claims and demands of all other parties claiming an
interest therein, keep the Pledged Collateral free from all liens and security interests, except
for those in favor of Noteholder, and not sell, exchange, transfer, assign, lease or otherwise
dispose of Pledged Collateral or any interest therein.

(c) Further Assurances. Promptly execute and deliver at its expense all further
instruments and documents and take all further action that may be reasonably necessary and
desirable or that the Noteholder may reasonably request in order to (i) perfect and protect the
security interest created hereby in the Pledged Collateral; (ii) enable the Noteholder to exercise
and enforce its rights and remedies hereunder in respect of the Pledged Collateral; and
(iii) otherwise effect the purposes of this Agreement, including, without limitation and if
requested by the Noteholder, delivering to the Noteholder irrevocable proxies in respect of the
Pledged Collateral.

(d) Amendments. Not make or consent to any amendment or other modification or waiver
with respect to any of the Pledged Collateral or enter into any agreement or allow to exist any
restriction with respect to any of the Pledged Collateral other than pursuant hereto or as may be
permitted under the Secured Note.

(e) Compliance with Securities Laws. File all reports and other information now or
hereafter required to be filed by Pledgor with the United States Securities and Exchange Commission
and any other state, federal or foreign agency in connection with the ownership of the Pledged
Collateral.

7. Rights of the Noteholder.

(a) Power of Attorney. In addition to other powers of attorney contained herein,
Pledgor hereby designates and appoints the Noteholder and each of its designees or agents as its
attorney-in-fact, irrevocably and with power of substitution, with authority to take any or all of
the following actions upon the occurrence and during the continuance of an Event of Default:

(i) to demand, collect, settle, compromise, adjust, give discharges and releases
relating to the Pledged Collateral, all as the Noteholder may reasonably determine;

(ii) to commence and prosecute any actions at any court for the purposes of collecting
any of the Pledged Collateral and enforcing any other right in respect thereof;

(iii) to defend, settle or compromise any action brought and, in connection therewith,
give such discharge or release relating to the Pledged Collateral as the Noteholder may
deem appropriate;

(iv) to pay or discharge taxes, liens, security interests or other encumbrances levied
or placed on or threatened against the Pledged Collateral;

(v) to direct any parties liable for any payment under any of the Pledged Collateral
to make payment of any and all monies due and to become due thereunder directly to the
Noteholder or as the Noteholder shall direct;

(vi) to receive payment of and receipt for any and all monies, claims, and other
amounts due and to become due at any time in respect of or arising out of any Pledged
Collateral;

(vii) to sign and endorse any drafts, assignments, proxies, stock powers,
verifications, notices and other documents relating to the Pledged Collateral;

(viii) to exchange any of the Pledged Collateral or other property upon any merger,
consolidation, reorganization, recapitalization or other readjustment of the issuer thereof
and in connection therewith, deposit any of the Pledged Collateral with any depository,
transfer agent, registrar or other designated agency upon such terms as the Noteholder may
determine; and

(ix) to do and perform all such other acts and things as the Noteholder may reasonably
deem to be necessary, proper or convenient in connection with the Pledged Collateral.

The Pledgor recognizes and agrees that this power of attorney is a power coupled with an interest
and shall be irrevocable. The Noteholder shall be under no duty to exercise or withhold the
exercise of any of the rights, powers, privileges and options expressly or implicitly granted to
the Noteholder in this Agreement, and shall not be liable for any failure to do so or any delay in
doing so. The Noteholder shall not be liable for any act or omission or for any error of judgment
or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact except
acts or omissions resulting from its gross negligence or willful misconduct. This power of
attorney is conferred on the Noteholder solely to protect, preserve and realize upon its security
interest in the Pledged Collateral. The Pledgor ratifies and confirms all actions taken by the
Noteholder or its agents pursuant to this power of attorney.

(b) Performance by the Noteholder of Pledgor’s Obligations. If Pledgor fails to
perform any agreement or obligation contained herein, after the occurrence and during the
continuance of an Event of Default, the Noteholder itself may perform, or cause performance of,
such agreement or obligation, and the expenses of the Noteholder incurred in connection therewith
shall be payable by the Pledgor.

(c) Assignment by the Noteholder. The Noteholder may from time to time assign this
Agreement and its rights to the Pledged Collateral and any portion thereof, and the assignee shall
be entitled to all of the rights and remedies of the Noteholder under this Agreement in relation
thereto.

(d) The Noteholder’s Duty of Care. Other than the exercise of reasonable care to
assure the safe custody of the Pledged Collateral while being held by the Noteholder hereunder, the
Noteholder shall have no duty or liability to preserve rights pertaining thereto, it being
understood and agreed that Pledgor shall be responsible for preservation of all rights in the
Pledged Collateral, and the Noteholder shall be relieved of all responsibility for Pledged
Collateral upon surrendering it or tendering the surrender of it to Pledgor. The Noteholder shall
be deemed to have exercised reasonable care in the custody and preservation of the Pledged
Collateral in its possession if such Pledged Collateral is accorded treatment substantially equal
to that which the Noteholder accords its own property, it being understood that the Noteholder
shall not have responsibility for (i) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relating to any Pledged Collateral,
whether or not the Noteholder has or is deemed to have knowledge of such matters; or (ii) taking
any necessary steps to preserve rights against any parties with respect to any Pledged Collateral.

(e) Voting Rights in Respect of the Pledged Collateral.

(i) So long as no Event of Default (as defined herein) shall have occurred and be
continuing, to the extent permitted by law, Pledgor may exercise any and all voting and
other consensual rights pertaining to the Pledged Collateral or any part thereof for any
purpose not inconsistent with the terms of this Agreement or the Secured Note;

(ii) Upon the occurrence and during the continuance of an Event of Default, all rights
of Pledgor to exercise the voting and other consensual rights which it would otherwise be
entitled to exercise pursuant to paragraph (i) of this Section shall cease and all such
rights shall thereupon become vested in the Noteholder which shall thereupon have the sole
right to exercise such voting and other consensual rights.

(f) Dividend Rights in Respect of the Pledged Collateral.

(i) So long as no Event of Default shall have occurred and be continuing and subject
to Section 4(b) hereof, Pledgor may receive, retain and use any and all dividends (other
than stock dividends and other dividends constituting Pledged Collateral which are
addressed hereinabove) or interest paid in respect of the Pledged Collateral to the extent
they are allowed under the Secured Note.

(ii) Upon the occurrence and during the continuance of an Event of Default:

(A) all rights of Pledgor to receive the dividends and interest payments which it
would otherwise be authorized to receive, retain and use pursuant to paragraph (i) of this
Section shall cease and all such shall thereupon be vested in the Noteholder which shall
thereupon have sole right to receive and hold as Pledged Collateral such dividends and
interest payments; and

(B) all dividends and interest payments which are received by Pledgor contrary to the
provisions of paragraph (A) of this Section shall be received in trust for the benefit of
the Noteholder, shall be segregated from other property or funds of Pledgor, and shall be
forthwith paid over to the Noteholder as Pledged Collateral in the exact form received, to
be held by the Noteholder as Pledged Collateral and as further collateral security for the
Secured Obligations.

(g) Release of Pledged Collateral. The Noteholder may release any of the Pledged
Collateral from this Agreement or may substitute any of the Pledged Collateral for other Pledged
Collateral without altering, varying or diminishing in any way the force, effect, lien, pledge or
security interest of this Agreement as to any Pledged Collateral not expressly released or
substituted, and this Agreement shall continue as a lien, first priority security interest, pledge
and charge on all Pledged Collateral not expressly released or substituted when any of the Secured
Obligations remains outstanding with respect to the Noteholder.

8. Advances by Noteholder. On failure of Pledgor to perform any of the covenants and
agreements contained herein, the Noteholder may, at its sole option and in its sole discretion,
perform the same and in so doing may expend such sums as the Noteholder may reasonably deem
advisable in the performance thereof, including, without limitation, the payment of any taxes, a
payment to obtain a release of a lien or potential lien, expenditures made in defending against any
adverse claim and all other expenditures which the Noteholder may make for the protection of the
security hereof or which it may be compelled to make by operation of law. All such sums and
amounts so expended shall be repayable by the Pledgor promptly upon notice thereof and demand
therefor, shall constitute additional Secured Obligations and shall bear interest from the date
said amounts are expended at the default rate provided in the Note. No such performance of any
covenant or agreement by the Noteholder on behalf of Pledgor, and no such advance or expenditure
therefor, shall relieve the Pledgor of any default under the terms of this Agreement or the other
related documents. The Noteholder may make any payment hereby authorized in accordance with any
bill, statement or estimate procured from the appropriate public office or holder of the claim to
be discharged without inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent
such payment is being contested in good faith by Pledgor in appropriate proceedings and against
which adequate reserves are being maintained in accordance with GAAP.

9. Events of Default. The occurrence of a default or event of default under the Secured
Note shall be an Event of Default hereunder (“Event of Default”).

10. Remedies Upon Default. If any Event of Default shall have occurred and be
continuing:

(a) Rights and Remedies. The Noteholder may exercise in respect of the Pledged
Collateral, in addition to other rights and remedies provided for herein or otherwise available to
it, all rights and remedies of a secured party on default under the UCC or any other applicable
law.

(b) Sale of Pledged Collateral. Without limiting the generality of this Section and
without notice (except as provided below), the Noteholder may, in its sole discretion, sell or
otherwise dispose of or realize upon the Pledged Collateral, or any part thereof, in one or more
parcels, at public or private sale, at any exchange or broker’s board or elsewhere, at such price
or prices and on such other terms as the Noteholder may deem commercially reasonable, for cash,
credit or for future delivery or otherwise in accordance with applicable law. To the extent
permitted by law, the Noteholder may in such event bid for the purchase of such securities.
Pledgor agrees that any requirement of reasonable notice shall be met if notice, specifying the
place of any public sale or the time after which any private sale is to be made, shall be
personally served on or mailed, postage prepaid, to Pledgor in accordance with the notice
provisions of the Secured Note at least 10 days before time of such sale. The Noteholder shall not
be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given.
The Noteholder may adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.

(c) Private Sale. The Pledgor recognizes that the Noteholder may deem it
impracticable to effect a public sale of all or any part of the Pledged Shares or any of the
securities constituting Pledged Collateral and that the Noteholder may, therefore, determine to
make one or more private sales of any such securities to a restricted group of purchasers who will
be obligated to agree, among other things, to acquire such securities for their own account, for
investment and not with a view to the distribution or resale thereof. Pledgor acknowledges that
any such private sale may be at prices and on terms no less favorable to the seller than the prices
and other terms which might have been obtained at a public sale and, notwithstanding the foregoing,
agrees that such private sale per se shall not be deemed to have been made in a
commercially unreasonable manner and that the Noteholder shall have no obligation to (i) register
such securities for public sale under the Securities Act of 1933, as amended, or any other similar
state registration laws, rules or regulations or (ii) delay sale of any such securities for the
period of time necessary to permit the issuer of such securities to register such securities for
public sale under the Securities Act of 1933.

(d) Retention of Pledged Collateral. The Noteholder may, after providing the notices
required by Section 9-621 of the UCC or otherwise complying with the requirements of applicable law
of the relevant jurisdiction, retain all or any portion of the Pledged Collateral in satisfaction
of the Secured Obligations. Unless and until the Noteholder shall have provided such notices,
however, the Noteholder shall not be deemed to have retained any Pledged Collateral in satisfaction
of any Secured Obligations for any reason.

(e) Application of Proceeds. Upon the occurrence and during the continuance of an
Event of Default, any payments in respect of the Secured Obligations and any proceeds of any
Pledged Collateral, when received by the Noteholder in cash or its equivalent, will be applied in
reduction of the Secured Obligations in such order as the Noteholder may determine in accordance
with the Secured Note, and Pledgor irrevocably waives the right to direct the application of such
payments and proceeds and acknowledges and agrees that the Noteholder shall have the continuing and
exclusive right to apply and reapply any and all such payments and proceeds notwithstanding any
entry to the contrary upon any of its books and records. The Pledgor shall remain liable to the
Noteholder for any deficiency.

(f) Deficiency. In the event that the proceeds of any sale, collection or realization
are insufficient to pay all amounts to which the Noteholder is legally entitled, the Pledgor shall
be liable for the deficiency, together with interest thereon at the default rate provided in the
Secured Note, together with the costs of collection and the reasonable fees of any attorneys
employed by the Noteholder to collect such deficiency. Any surplus remaining after the full
payment and satisfaction of the Secured Obligations shall be returned to Pledgor or to whomsoever a
court of competent jurisdiction shall determine to be entitled thereto.

11. Costs of Counsel. If at any time hereafter, after the occurrence and during the
continuance of an Event of Default or not, the Noteholder employs counsel to prepare or consider
amendments, waivers or consents with respect to this Agreement, or to take action or make a
response in or with respect to any legal or arbitral proceeding relating to this Agreement or
relating to the Pledged Collateral, or to protect the Pledged Collateral or exercise any rights or
remedies under this Agreement or with respect to any Pledged Collateral, then the Pledgor agrees to
promptly pay upon demand any and all such reasonable costs and expenses of the Noteholder.

12. Continuing, Agreement. This Agreement shall be a continuing agreement in every respect
and shall remain in full force and effect so long as any Secured Obligations shall remain unpaid,
including any obligations under this Agreement or the Secured Note. Upon such termination of this
Agreement, the Noteholder shall, upon the request and at the expense of Pledgor, forthwith release
all of its liens and security interests hereunder. Notwithstanding the foregoing all releases and
indemnities provided hereunder shall survive termination of this Agreement.

13. Amendments; Waivers; Modifications. This Agreement and the provisions hereof may not
be amended, waived, modified, changed, discharged or terminated except with the written consent of
all of the parties hereto.

14. Successors in Interest. This Agreement shall create a continuing security interest in
the Collateral and shall be binding upon Pledgor, its successors and assigns and shall inure,
together with the rights and remedies of the Noteholder hereunder, to the benefit of the Noteholder
and its successors and assigns; provided, however, that Pledgor may not assign its
rights or delegate its duties hereunder without the prior written consent of the Noteholder.

15. Notices. All notices required or permitted to be given under this Agreement shall be
in conformance with, and be effective as provided by, the terms of the Secured Note.

16. Counterparts. This Agreement may be executed in any number of counterparts, each of
which where so executed and delivered shall be an original, but all of which shall constitute one
and the same instrument. It shall not be necessary in making proof of this Agreement to produce or
account for more than one such counterpart.

17. Headings. The headings of the sections and subsections hereof are provided for
convenience only and shall not in any way affect the meaning or construction of any provision of
this Agreement.

18. Governing Law. All rights and liabilities hereunder shall be governed and limited
by and construed in accordance with the local laws of the State of Georgia (without regard to
Georgia conflicts of law principles).

19. Venue and Jurisdiction; Waiver of Jury Trial. Pledgor irrevocably submits to the
exclusive jurisdiction of the courts of the State of Georgia located in the County of Cobb and the
United States District Court in and for the Northern District of Georgia for the purpose of any
suit, action, proceeding or judgment relating to or arising out of this Security Agreement and the
transactions contemplated thereby. Borrower irrevocably consents to the jurisdiction of any such
court in any such suit, action or proceeding and to the laying of venue in such court, irrevocably
waives any objection to the laying of venue of any such suit, action or proceeding brought in such
courts, and irrevocably waives any claim that any such suit, action or proceeding brought in any
such court has been brought in an inconvenient forum. THE PARTIES IRREVOCABLY AND VOLUNTARILY
WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CONTROVERSY OR CLAIM THAT
RELATES TO THIS AGREEMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO
THIS AGREEMENT.

20. Severability. If any provision of this Agreement is determined to be illegal, invalid
or unenforceable, such provision shall be fully severable and the remaining provisions shall remain
in full force and effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

21. Entirety. This Agreement, the Secured Note and the other Transaction Documents
represent the entire agreement of the parties hereto and thereto, and supercede all prior
agreements and understandings, oral or written, if any, including any commitment letters or
correspondence relating to the Transaction Documents or the transactions contemplated herein and
therein.

22. Survival. All representations and warranties of Pledgor hereunder shall survive the
execution and delivery of this Agreement and the Secured Note.

23. Other Security. To the extent that any of the Secured Obligations is now or hereafter
secured by property other than the Pledged Collateral (including, without limitation, real property
and securities owned by Pledgor), or by a guarantee, endorsement or property of any other person or
entity, then the Noteholder shall have the right to proceed against such other property, guarantee
or endorsement upon the occurrence of any Event of Default, and the Noteholder has the right, in
its sole discretion, to determine which rights, security, liens, security interests or remedies the
Noteholder shall at any time pursue, relinquish, subordinate, modify or take with respect thereto,
without in any way modifying or affecting any of them or any of the Noteholder’s rights or the
Secured Obligations under this Agreement or under any other of the related documents.

[remainder of page intentionally left blank]

1

IN WITNESS WHEREOF, the parties, by their officers thereunto duly authorized, have executed
and delivered this Agreement as of the day and year first above written.

PLEDGOR:

VIASPACE, INC.

	 	 	 
	By:

	 	

	 

	 	 
	Name: Carl Kukkonen

Title: President & CEO

	 	

	NOTEHOLDER:

	 	

	SUNG HSIEN CHANG

	 	

	By:

	 	

	 

	 	 

2

SCHEDULE 1

	 	 	 	 	 	 	 
	Name of Subsidiary	 	Number of Shares	 	Certificate Number
	Viaspace Green Energy, Inc.
	 	 	6,506,000	 	 	1; 2; and a newly-issued

certificate to be issued post

closing by the transfer agent

evidencing the balance of the

6,506,000 shares

	 
	 	 	 	 	 	 

3

SCHEDULE 2

Form of Irrevocable Stock Power

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to Sung H. Chang the
following shares of capital stock of Viaspace Green Energy, Inc., a company organized under
the laws of the British Virgin Islands:

	 	 	 	 	 
	No. of Shares
	 	Certificate No.

	 	 	 	 	 

	 	6,506,000	 	 	1; 2; and a newly-issued certificate to be issued post

closing by the transfer agent evidencing the balance of the

6,506,000 shares

	 	 	 	 	 

and irrevocably appoints Sung H. Chang its agent and attorney-in-fact to transfer all or any
part of such capital stock and to take all necessary and appropriate action to effect any such
transfer. The agent and attorney-in-fact may substitute and appoint one or more persons to act for
him. The effectiveness of a transfer pursuant to this stock power shall be subject to any and all
transfer restrictions referenced on the face of the certificates evidencing such interest or in the
certificate of incorporation or bylaws of the subject corporation, to the extent they may from time
to time exist. This Stock Power is subject to the terms of that certain Pledge Agreement dated May
14, 2010.

VIASPACE, INC.,

a Nevada corporation

By:

Name: Carl Kukkonen

Title: President & CEO

4

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