VIASPACE Green Energy Inc (VGREF)

[hedge_fun]

Good or bad Mr Chang winds up with -0- if he walks.

How do you figure? If Chang walks, VSPC has nothing. If he finds VSPC in default, then he retains IPA (art bidness) including the GKG sub license with NO TERMS as stated in the filings, plus the 75% of the VGREF shares VSPC holds. He also keeps his 100's of millions of VSPC shares as well.

VSPC is left as a shell with 2 inactive subsidiaries. Read the filings..........

The Note is secured by certain assets of VIASPACE, including all securities of VGE held by VIASPACE. The Note is also secured by the assets of VGE, IPA BVI and IPA China. The Note may be accelerated upon an event of default under the note which includes failure to repay any amount owed, or breach of certain representations, warranties and covenants. The Note also includes various affirmative covenants, including legal compliance and insurance maintenance; and negative covenants, including VIASPACE maintaining a net worth of $5 million on a consolidated basis. If VIASPACE is ultimately unable to make this cash payment, or some other alternate arrangement is not reached, VIASPACE would be required to transfer all of the shares of VGE it holds to Chang. This would cause Mr. Chang to have greater influence on shareholder decisions.

Chang really can't walk, but he can tell Karl to hit the road. Funny the new employee contract, if it exist, hasn't been made public.

Here's the part about the sub license........

We sublicense our intellectual property to the GKG from China Gate which licenses the intellectual property from the original licensor. The term of this license is not specified (NO TERMS). China Gate has informed us that they have an exclusive license to the GKG in Guangdong province and North America and have granted us an exclusive sublicense to the same region. However, because we do not have a direct relationship with the holder of the intellectual property, any material adverse effect to the GKG license held by our sublicensor would affect our rights as the sublicensee. The original licensor is aware of our sublicense and has consented to it. For instance, if our sublicensor fails to perform its obligations under its license with the original licensor, we would have no recourse against the original licensor and our rights with respect to the sublicense may be materially affected.

No one is going to sign a 20 year deal with VGE. If VGE wants to produce pellets, have at it. That's all that sub license is good for.