Document:

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EXHIBIT 10.38

                                  AGREEMENT

THIS AGREEMENT ("Agreement") is executed as of this 1st day of November 1999,
by and between THE RICEX COMPANY, a Delaware corporation ("RiceX"), and
BIOCEUTICS, INC., a Delaware corporation ("BioCeutics").

         A. RiceX is a producer of nutritionally dense ingredients and
related products (the "Products").

         B. BioCeutics has been formed to engage in the distribution and sale
of nutraceutical products involving nutritionally dense ingredients, and
desires to obtain a supply of nutritionally dense ingredients and an
exclusive arrangement with RiceX for the sale of nutritionally dense
ingredients to the entire human market on the terms set forth below.

         C. RiceX is willing to grant BioCeutics a right of first refusal to
acquire its nutritionally dense ingredients and to grant BioCeutics an
exclusive arrangement with RiceX in the entire human market on the terms and
conditions set forth below.

NOW, THEREFORE, in consideration of the foregoing recitals and for other
valuable consideration, the parties agree as follows:

                  1. SALE OF PRODUCTS. RiceX agrees to sell its Products
identified in EXHIBIT "A" attached hereto to BioCeutics on the terms and
subject to the conditions of this Agreement. BioCeutics shall be entitled to
a "most favored customer" status, exclusive of samples (which shall be free).
The price to be charged to BioCeutics for its purchase of any Products shall
be that price which is published in the RiceX standard price sheet or the
price negotiated with other customers for like quantities and like Products,
whichever is less ("PRICE");PROVIDED, HOWEVER, that for a period of one year
from the date hereof, RiceX shall sell its Products to BioCeutics at a five
percent (5%) discount from the Price, to the extent the Products are to be
resold to existing customers of RiceX, all of which are identified IN EXHIBIT
"B" attached hereto. All payments due to RiceX hereunder shall be paid to
RiceX in United States dollars not later than thirty (30) days following the
date of the applicable invoice from RiceX. All Products delivered to
BioCeutics shall be F.O.B. RiceX's plant of origin of the Products, and upon
delivery to the proper carrier title and risk of loss and delay shall pass to
BioCeutics. RiceX shall deliver Products to the common carrier specified by
BioCeutics within ten (10) days after the date for which delivery of Products
is requested in a purchase order from BioCeutics, and shall assist BioCeutics
in arranging any desired insurance (in amounts that BioCeutics shall determ
ine) and transportation to any destinations specified in writing from time to
time by B ioCeutics. All insurance premiums and other expenses relating to
such transportation and delivery shall be at BioCeutics' expense, RiceX
further agrees that it shall maintain its existing pricing margins (selling
price minus cost of goods sold) in effect throughout the term of this
Agreement.

                  2. RIGHT OF FIRST REFUSAL.

                           (a) RIGHT OF FIRST REFUSAL. RiceX hereby grants to
BioCeutics a right of first refusal (the "Right of First Refusal") to
purchase all of the RiceX Products not already under contract to RiceX
non-human/feed customers.

                           (b) EXERCISE RIGHT OF FIRST REFUSAL. In order to
exercise the right of first refusal granted to it hereunder, RiceX will
provide BioCeutics with production surplus for the remainder of calendar year
1999, and will notify BioCeutics on or before April I and October I of each
year commencing in 1999 of the amount of estimated production of Products
during the following six (6) calendar months. Thereafter, on or before May I
and November I of each year commencing in 1999, BioCeutics shall inform RiceX
in writing of the amount of each Product that BioCeutics is willing to
purchase during the following six (6) calendar months. (By way of example,
BioCeutics shall notify RiceX on or before November 1, 1999 of the amount of
each Product that BioCeutics is willing to purchase for the six (6) months
commencing January 1, 2000 to June 30, 2000.) To the extent that BioCeutics
commits to purchase RiceX Products, RiceX shall be obligated to manufacture
and supply such Products, and BioCeutics then shall be obligated to purchase
the Products on a take or pay basis. In addition, should BioCeutics commit to
purchase a certain quantity of RiceX Products per month, but elects to take
delivery of a lesser amount, RiceX shall be paid for the total contracted
production but will deliver the additional Products as and when directed by
BioCeutics during the ensuing twelve (12) month period. Should BioCeutics
fail to direct delivery of said production during the ensuing twelve (12)
month period, BioCeutics shall FORFEIT PREPAID funds and the right to receive
the Product.

                           (c) SALES TO OTHER CUSTOMERS. In the event that
BioCeutics does not elect to purchase all of the estimated semi-annual
production of RiceX, RiceX then shall be entitled to sell the balance of its
production to other customers, but not to customers in the human market.
Notwithstanding the foregoing, if BioCeutics declines to sell to any customer
in the human market, BioCeutics will notify RiceX and, if BioCeutices
CONSENTS (IN WRITING), RICEX SHALL be entitled to sell to such human market
customer.

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                           (d) TERM. The term of this right of first refusal
(and of this Agreement) shall be for ten (10) years commencing on the date
hereof and continuing until November 1, 2009. In addition, provided that
BioCeutics is not then in material default under this Agreement, BioCeutics
shall have the option to extend the term of this Agreement for four (4)
periods of five (5) years each. Such extensions shall occur automatically
unless BioCeutics gives written notice to RiceX at least ninety (90) days
prior to the expiration of the initial term or each renewal term that it does
not elect to extend the term of this Agreement.

                  3. EXCLUSIVE RIGHT TO SELL.

                           (a) EXCLUSIVE RIGHT TO SELL. Subject to meeting
the minimum purchase requirements set forth in paragraph 3 (c) below, RiceX
hereby grants to BioCeutics the exclusive right to sell Products which
include RiceX ingredients to the entire human market, including current
customers of RiceX. During the term of this Agreement, no one other than
BioCeutics, shall sell Products for the human market, except as provided in
paragraph 2(c) above. In addition, in the event anyone contacts RiceX with a
business opportunity for the human market, RiceX shall forward that inquiry
to BioCeutics.

                           (b) MINIMUM PURCHASE REQUIREMENTS. The exclusive
rights granted to BioCeutics under paragraph 3(b) of this Agreement (but no
other rights granted hereunder) shall terminate in the event that BioCeutics
purchases less than $2,000,000 (not including sales to customers indicated on
EXHIBIT "B" ATTACHED HERETO) OF PRODUCTS through December 31, 2000, or
$5,000,000 of Products in 2001. Thereafter, the exclusive rights granted to
BioCeutics hereunder shall be subject to minimum purchases of $6,000,000 in
2002, $7,200,000 in 2003, $8,640,000 in 2004, and increasing thereafter at
the rate of five percent (5%) per annum from 2005 through the remaining term
of this Agreement. All purchases in excess of the required minimum per year
shall be carried over to the following year, and BioCeutics' obligation to
meet such minimum purchase requirements is subject to RiceX manufacturing
sufficient Product to allow BioCeutics to meet such minimum purchases.

                           (c) LICENSE FOR TRADEMARKS. In addition to the
exclusive right to sell described in this paragraph, so long as BioCeutics is
not in default hereunder, RiceX hereby grants to BioCeutics an exclusive
license to use the trademarks "MiraChol" and "MaxE" BioCeutics also shall be
required to imprint the RiceX trademark brand on all products incorporating
RiceX Products sold by BioCeutics during the term of this Agreement. RiceX
agrees that it is the holder of the trademarks ("Trademarks") mentioned in
this paragraph, and that the sale and use of the Products and the Trademarks
will not infringe any person's right. RiceX shall indemnify and defend
BioCeutics against any and all such infringement claims, demands, actions,
losses, damages, fines, penalties, costs and expenses (including reasonable
attorneys' fees). BioCeutics acknowledges that RiceX's right in the
Trademarks are subject to an existing security interest in favor of a lender.

                           (d) TERM OF EXCLUSIVE RIGHT TO SELL AND EXCLUSIVE
LICENSE TO USE TRADEMARKS. The term of the exclusive rights granted to
BioCeutics hereunder shall be for the term of this Agreement (including
extensions) as provided in paragraph 2(d) above.

                           (e) PAYMENT FOR EXCLUSIVE RIGHT. In consideration
for granting the exclusive rights and license to BioCeutics hereunder,
BioCeutics shall pay to RiceX the following:

                                    (i) A royalty of two percent (2%) of
BioCeutics' gross receipts. For purposes of this Agreement, the term "gross
receipts" means the total receipts received by BioCeutics and its affiliates
who are involved in the sale of nutraceutical products from all sources, but
shall be net of freight charges and other similar costs and shall exclude
refunds for merchandise returned which were previously included in gross
receipts, allowances or adjustments granted to customers to the extent that
these were previously included in gross receipts, transfers of merchandise
from warehouse to warehouse provided that such transfer was not for the
purpose of delivery of merchandise sold, merchandise returned to vendors, and
sales, use, gross receipts, excise and like taxes which are added to the
selling price of merchandise at the point of sale and paid for by the
customer,

                                    (ii) BioCeutics shall keep full and
complete records and books of account reflecting all sales and business
transactions in order to enable RiceX to ascertain the royalty payments due
hereunder. BioCeutics agrees to keep all records pertaining to gross receipts
at its main office for a period of not less than three (3) years following
the date on which BioCeutics submits its report of gross receipts based on
such records. BioCeutics also shall prepare and deliver to RiceX within
thirty (30) days after the end of each calendar quarter a true written
statement signed by BioCeutics or its duly authorized officer or agent
showing in such form and detail as RiceX shall reasonably specify the
elements and amounts of gross receipts during such calendar quarter or
fraction thereof. With said statement for each calendar quarter, BioCeutics
shall pay to RiceX the amount of royalty due for such calendar quarter. If
BioCeutics shall fail to prepare and deliver, within the time above
mentioned, any statement of gross receipts or other related information
required hereunder, RiceX may elect to treat BioCeutics' failure as a breach
of this Agreement. RiceX also may elect to conduct an audit of all books and
records of BioCeutics which in any way pertain to or show gross receipts.
Such audit may be conducted by RiceX or by its authorized representative. If
the statement prepared as a result of such audit indicates that any

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additional royalties are due, BioCeutics shall pay such royalties, plus
interest thereon at the maximum rare from the date such payment was due until
the date of payment, and in addition, in any case where the amount of gross
receipts shown by such audit is equal to or in excess of one hundred four
percent (104%) of the amount disclosed by BioCeutics' statement for the same
period, BioCeutics shall pay for the cost of the audit.

                           (f) INFRINGEMENT. RiceX shall use its best
efforts to prevent others from infringing upon the exclusive rights granted
to BioCeutics hereunder, but shall not be liable for such infringement, nor
shall such infringement affect any payments required hereunder.

                           (g) TERRITORY. This Agreement shall relate to
domestic and international sales, provided that RiceX shall be entitled to
sell Products, in bulk only, to wholesale customers located in the countries
of China, India, Indonesia, Bangladesh, Vietnam, Thailand, Myanmar,
Philippines, Brazil, Korea, Pakistan, Egypt and Malaysia, but will cease such
activity promptly after BioCeutics gives it notice that it chooses to exploit
such opportunity and substantially maintain RiceX's market share. The
exclusive right granted to BioCeutics hereunder as to international sales
shall be for a term expiring December 31, 2000. Thereafter, BioCeutics shall
have the option, exercisable by giving RiceX written notice thereof at any
time prior to February 28, 2001, to extend the exclusive rights granted
hereunder as to international sales for the remaining term of this Agreement
by giving RiceX written notice thereof accompanied by a cash payment of
$500,000.

                           (h) INDEMNIFICATION.

                           (i) RiceX agrees to indemnify BioCeutics for, and
hold it harmless from and against, any and all costs, expenses and damages
(including reasonable attorneys' fees and expenses) incurred in connection
with any suit, action or claim arising out of, or as a result of, any claims
for damages to person or property occasioned from the use of the products to
be sold by BioCeutics after the date hereof, if and only if, such damages are
caused by the Products purchased hereunder from RiceX and not any additions
to or modifications of the Products made by BioCeutics ("Additions and
Modifications").

                           (ii) BioCeutics agrees to indemnify RiceX for, and
hold it harmless from and against, any and all costs, expenses and damages
(including reasonable attorneys' fees and expenses) incurred in connection
with any suit, action or claim arising out of, or as a result of, any claims
for damages to person or property occasioned from the use of the products to
be sold by BioCeutics after the date hereof, if and only if, such damages are
caused by the Modifications and Additions and not the Products purchased
hereunder from RiceX.

                  4. DEFAULT. A party shall be in default under this
Agreement if any of the following shall occur:

                           (a) BioCeutics shall fail to pay any royalty due
hereunder as and when due;

                           (b) RiceX shall fail to manufacture Products for
sale to BioCeutics hereunder;

                           or

                           (c) Either party shall otherwise breach any term
or condition of this Agreement.

If an event of default shall occur and is not cured within thirty (30) days
after the giving of written notice thereof to the defaulting party, the other
party shall be entitled to terminate this Agreement and the exclusive rights
and exclusive license granted hereby, and pursue any and all claims for
damages. In addition, in the event that BioCeutics fails to meet the minimum
purchase requirements for December 31, 2000 as set forth in paragraph 3(c)
above, all results, reports, information and materials derived from the
clinical trials, testing and research to be undertaken by BioCeutics (which
materials and information currently are owned by BioCeutics) shall become the
property of RiceX and shall be delivered to RiceX by BioCeutics, subject to a
non-exclusive right in favor of BioCeutics to continue to use such materials
and information free of charge.

                  5. MISCELLANEOUS.

                           (a) TIME IS OF THE ESSENCE. Time is of the essence
in the performance of the parties' respective obligations herein contained.

                           (b) FURTHER ASSURANCE. Each party agrees that upon
the request of the other it will, from time to time, execute and deliver to
such other party all such instruments and documents of further

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                           assurance or otherwise, and will do any and all
such acts and things as reasonably may be required to carry out the
obligations of such party hereunder and consummate the transactions
contemplated hereby.

                           (c) HEADINGS. The headings of this Agreement are
included for purposes of reference and convenience only and shall not limit
or otherwise affect the construction or interpretation of any of the
provisions of this Agreement.

                           (d) ENTIRE AGREEMENT, MODIFICATION. This
Agreement, including all exhibits, constitutes the entire agreement between
the parties hereto pertaining to the subject matter hereof and supersedes all
prior and contemporaneous agreements and understandings of the parties in
connection herewith. No supplement, modification or amendment of this
Agreement shall be effective unless executed in writing by all of the parties
hereto.

                           (e) NOTICE. Whenever the service or the giving of
any document or consent by or on behalf of any party hereto upon any other
party is herein provided for, or becomes necessary or convenient under the
provisions of this Agreement or any document related hereto, a valid and
efficient service of such document shall be effected by delivering the same
in writing to such party in person, by Federal Express or other reputable
courier, by facsimile, or by sending the same by registered or certified
mail, return receipt requested, and shall be deemed received upon personal
delivery if delivered personally, by Federal Express or other reputable
courier or by facsimile, or four (4) business days after deposit in the mail
in the United States, postage prepaid, addressed to the person to receive
such notice or communication at the following address:

RiceX:                      1241 Hawk's Flight Court
                            El Dorado Hills, California 95762
                            Attention:  Daniel L McPeak, Sr.
                            Telephone:(916) 933-3000
                            Facsimile:  (916) 933-3333

BioCeutics:                 Graubard Mollen & Miller
                            600 Third Avenue
                            New York, New York 100 16
                            Attention:  David Alan Miller
                            Telephone (212) 818-8800
                            Facsimile: (212) 818-8881

Notice of change of address shall be given by written notice in the manner
detailed in this paragraph 5(e).

                           (f) COUNTERPARTS. This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which,
together, shall constitute one and the same instrument.

                           (g) LAW GOVERNING. This Agreement shall be
construed in accordance with, and shall be governed by, the laws of the State
of Delaware.

                           (h) SUCCESSORS AND ASSIGNS. Neither party may
assign any of its rights or obligations under this Agreement without the
prior written consent of the other party, which consent may be withheld in
such party's sole and absolute discretion. Subject to the foregoing, this
Agreement shall be binding upon and enforceable by, and shall inure to the
benefit of, the parties hereto and their respective successors and assigns.

                           (i) SEVERABILITY. In the event any portion of
this Agreement shall be declared by any court of competent jurisdiction to be
invalid, illegal or unenforceable, such portion shall be deemed severed from
this Agreement, and the remaining parts hereof shall remain in full force and
effect, as fully as though such invalid, illegal or unenforceable portion had
never been a part of this Agreement.

                           (J) GENDER AND NUMBER. As used in this Agreement,
the masculine, the feminine and the neuter gender, and the singular or plural
number, shall be deemed to include the others wherever the context so
indicates or requires.

                           (k) ATTORNEYS' FEES. In the event of the bringing
of any action by any party hereto against any other party arising out of this
Agreement, the party who is determined to be the prevailing party shall be
entitled to recover from the other party all costs and expenses of suit,
including reasonable attorneys' fees.

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                           (l) GOVERNING LAW, DISPUTE. This Agreement shall
be governed by and construed under the law of the State of Delaware,
disregarding any principles of conflicts of law that would otherwise provide
for the application of the substantive law of another jurisdiction. Each of
the undersigned (i) agrees that any legal suit, action or proceeding arising
out of or relating to this Agreement shall be instituted exclusively in the
Superior Court of the State of Delaware, (ii) waives any objection to the
venue of any such suit, action or proceeding and the right to assert that
such forum is not a convenient forum, and (iii) irrevocably consents to the
jurisdiction of the Superior Court of the State of Delaware in any such
suit,action or proceeding. Each of the undersigned further agrees to accept
and acknowledge service of any and all process which may be served in any
such suit, action or proceeding in the Superior Court of the State of
Delaware and agrees that service of process upon it mailed by certified mail
to its address shall be deemed in every respect effective service of process
upon it in any such suit, action or proceeding.

                           (m) FORCE MAJEURE. Either party shall be excused
from all obligations under this Agreement to the extent performance is
prevented by a Force Majeure. For purposes of this Agreement, a "Force
Majeure" includes only Acts of God; hurricane, tornado and other weather
conditions; labor strike, lockout or other major industrial disturbance; war,
riot, sabotage, act of public enemy, terrorist act or gang violence; serious
illness or epidemic; earthquake or other earth movement, flood or other
natural disaster; bomb blast or other explosion; fire or, government action
that prevents performance.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

THE RICEX COMPANY
A Delaware Corporation
("RiceX")

Name: Daniel McPeak, Sr
By:/s/Daniel L. McPeak
Its: Chief Executive Officer and Chairman of the Board

BIOCEUTICS, INC.
A Delaware Corporation
("BioCeutics")

Name: Samuel Rozzi
By:/s/Samuel Rozzi
Its: Vice President

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EXHIBIT 10.39

                               EMPLOYMENT AGREEMENT

          THE RICEX COMPANY, a Delaware corporation ("Employer"), and Daniel
L. McPeak, Jr. ("Employee"), agree as follows, effective as of the first of
May 1999 (the "Effective Date").

          1. EMPLOYMENT. Employer hereby employs Employee and Employee hereby
accepts employment with Employer on the terms and conditions set forth below.

          2. POSITION; SCOPE OF EMPLOYMENT. Employee shall have the position
of Executive Vice President and General Manager. Employee's duties shall
include development of primary goals, operating plans, policies, and short
and long range objectives for the Company. Implements these following Board
of Directors' approval. Directs and coordinates activities to achieve profit
and return on capital. Establishes organizational structure and delegates
authority to subordinates. Leads the organization towards objectives, meets
with and advises other executives and reviews results of business operations.
Determines action plans to meet needs of stakeholders. Shall include such
other duties and authority as specified by Employer and as may be modified
from time to time.

                  2.1. ENTIRE TIME AND EFFORT. Employee shall devote
Employee's full working time, attention, abilities, skill, labor and efforts
to the performance of Employee's employment. Employee shall not directly or
indirectly (i) be substantially engaged in or concerned with any other duties
or pursuits, (ii) render services to any third party for compensation or
other benefit, or (iii) engage in any other business activity that will in
any way interfere with the performance of Employee's duties under this
Agreement, except with the prior written consent of Employer; provided,
however, that Employee may engage in charitable, philanthropic, educational,
religious, civic and similar such activities to the extent that such
activities do not unreasonably interfere with the performance of Employee's
duties under this Agreement.

                  2.2. RULES AND REGULATIONS. Employee agrees to observe and
comply with Employer's rules and regulations as provided by Employer and as
may be amended from time to time by Employer, and will carry out and
faithfully perform such orders, directions and policies of Employer.

          3. TERM OF EMPLOYMENT. Employee's term of employment under the
terms of this Agreement shall commence on May 1, 1999 and shall terminate
five years from that date, unless terminated earlier as provided herein. At
the end of the initial five-year term, this Agreement shall automatically
renew for an additional five-year term unless either party notifies the other
party in writing ninety (90) days prior to the expiration of the term of his
or its intention not to renew this Agreement.

          4. COMPENSATION. Employer shall pay Employee the base pay ("Base
Salary") per year which is in effect on the date of this agreement. Effective
six months from the date of this Agreement (November 1, 1999) the Employer
shall pay Employee an effective annual rate equivalent to One Hundred Twenty
Five Thousand Dollars ($125,000) per year. Effective in twelve months of this
Agreement (May 1, 2000), Employer shall pay to Employee an effective

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rate equivalent to One Hundred Thirty Five Thousand Dollars ($135,000) per
year. Salary payments will be payable in periodic installments in accordance
with Employer's pay schedule, but not less than twice per month. The Base
Salary shall be reviewed at least annually

                  4.1. BENEFITS. Employee shall be provided with medical
insurance and such other benefits as provided to Employer's other similarly
situated employees and in accordance with Employer's policies, as modified
from time to time in Employer's sole discretion.

                  4.2. VACATION AND SICK LEAVE. Employee shall be entitled to
four weeks of vacation each calendar year. Employee's vacation shall accrue
at the rate of thirteen and one-thirds (13 1/3) hours per month but in no
event shall Employee's total accrued vacation exceed eight (8) weeks.
Employee shall be entitled to sick leave in accordance with Employer's sick
leave policy.

                  4.3. AUTOMOBILE. Employer shall make lease payments on
behalf of the Employee, up to a maximum amount of six hundred dollars
($600.00) per month. Employer shall also reimburse Employee for his actual
expenses incurred in the operation of one automobile for automobile
insurance, annual registration, and maintenance.

                  4.4. BONUS. Employee shall be eligible to participate in
Employer's bonus program when implemented to the same extent as other
executive employees of Employer. Employer intends to adopt such a program
prior to the expiration of this Agreement, but makes no further
representations as to the terms of such program or the date such program will
be enacted.

                  4.5. STOCK OR STOCK OPTION PLAN. As additional compensation
for Employee's services, prior to December 31, 1999, Employer shall grant,
and/or shall cause its affiliates, successors, or assigns to grant, to
Employee equity compensation in the form of an option to purchase 900,000
shares of Employer's Common Stock (the "Option") under Employer's 1997 Stock
Option Plan.

         5.        TERMINATION OF EMPLOYMENT

                  5.1. TERMINATION EVENTS. Employee's employment shall be
terminated prior to the expiration of this Agreement ("Early Termination")
upon the occurrence of any of the following events: (i) the mutual written
agreement of Employer and Employee; (ii) Employee's disability, which shall
for the purposes of this Agreement mean Employee's inability due to physical
or mental impairment to perform Employee's duties and obligations under this
Agreement, despite reasonable accommodation by Employer, for a period
exceeding three months; (iii) Employee's death; (iv) notice by Employer of
termination for cause as defined in Section 5.2 below; (iv) written notice of
termination by Employer without cause upon fourteen (14) days' notice,
subject to the Compensation Upon Early Termination provisions of Section 5.3
below.

                  5.2. TERMINATION FOR CAUSE. Employer reserves the right to
terminate this Agreement for cause upon (i) Employee's willful and continued
failure substantially to perform

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his duties and obligations under this Agreement after written demand for
substantial performance has been delivered to Employee by Employer which sets
forth with reasonable specificity the deficiencies in Employee's performance
and giving Employee not less than thirty (30) days to correct such
deficiencies; (ii) fraud or intentional material misrepresentation by
Employee, (iii) unauthorized disclosure or use of Employer's trade secrets or
Confidential Information by Employee; (iv) Employee's conviction of a felony;
(v) theft or conversion of Employer's property by Employee; or (vi)
Employee's habitual misuse of alcohol, illegal narcotics, or other intoxicant.

                  5.3. COMPENSATION UPON EARLY TERMINATION. Upon early
termination, Employer shall pay Employee compensation as follows.

                           (A) If Employee is terminated by Employer for
cause, voluntarily resigns, dies, or becomes disabled as such term is used in
Section 5.1 of this Agreement, Employer shall pay Employee, or Employee's
representative, all accrued but unpaid salary and vacation pay accrued
through the effective date of the termination.

                           (B) If Employee is terminated by Employer without
cause, Employer shall pay to Employee as liquidated damages and in lieu of
any and all other claims which Employee may have against Employer the amount
equal to Employee's monthly base salary multiplied by the number of months
remaining in the term of this Agreement, or payment amount equal to two years
of Employee's Base Salary, which ever is greater. Employer's payment pursuant
to this section shall fully and completely discharge any and all obligations
of Employer to Employee arising out of or related to this Agreement and shall
constitute liquidated damages in lieu of any and all claims which Employee
may have against Employer, not including any obligation under the Worker's
Compensation laws including its Employer's Liability provisions.

                           (C) If Employee is terminated as the result of a
Change in Control and Employee is not employed in the same capacity or being
paid the same Base Salary by the new entity, then Employee shall receive a
severance payment equal to two years of Employee's Base Salary or the balance
remaining to be paid under the terms of this Agreement, whichever is greater.
In addition, if Employee is terminated as the result of a Change in Control
and Employee is not employed in the same capacity by the new entity, Employer
agrees to continue Employee's medical and dental insurance benefits as
provided during Employee's employment with Employer for a period of two years
from the effective date of the Change in Control, except as provided below in
Section 5.3(C)(1) and Section 5.3(C)(2).

                                    (1) Employee agrees that he shall accept
any plan coverage changes that may occur during the two-year period which
apply to all employees in the workforce.

                                    (2) Employee agrees that he will notify
Employer (or any successor of Employer) if he becomes employed in any
capacity with another employer and becomes eligible to receive medical and
dental insurance benefits through that employment prior to the expiration
date of the two-year period set forth in this section. At such time, Employer
shall no longer be obligated to provide Employee with medical and dental
insurance benefits.

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         6. UNFAIR COMPETITION. During Employee's employment under this
Agreement, Employee shall not directly or indirectly, whether as a partner,
employee, creditor, shareholder or otherwise, promote or engage in any
activity or other business which is competitive in any way with Employer's
business, and shall not take any action or make any agreement to establish,
or become employed by, a competing business.

         7.       PROPRIETARY INFORMATION; CONFIDENTIALITY.

                  7.1. CONFIDENTIAL INFORMATION. Employee agrees not to
disclose to any others, or take or use for Employee's own purposes or
purposes of any others, during the term of this Agreement, any of Employer's
Confidential Information (as defined below). Employee agrees that these
restrictions shall also apply to (1) Confidential Information belonging to
third parties in Employer's possession and (2) Confidential Information
conceived, originated, discovered or developed by Employee during the term of
this Agreement. "Confidential Information" means any Employer proprietary
information, technical data, trade secrets or know-how, including, but not
limited to, research, product plans, products, services, customer lists and
customers, markets, software, developments, inventions, processes, formulas,
technology, designs, drawings, engineering, marketing, finances or other
business information disclosed to Employee by Employer, either directly or
indirectly, in writing, orally or by drawings, or by observation of products.
Confidential Information does not include any of the foregoing items which
has become publicly known and made generally available through no wrongful
act of Employee. Employee further agrees not to use improperly or disclose or
bring onto the premises of Employer any trade secrets of another person or
entity during the term of this Agreement.

                  7.2. RETURN OF PROPERTY. Employee agrees that upon
termination of employment with Employer, Employee will deliver to Employer
all devices, records, data, disks, computer files, notes, reports, proposals,
lists, correspondence, specifications, drawings, blueprints, sketches,
materials, equipment, other documents or property, or reproductions of any
aforementioned items developed by Employee pursuant to employment with
Employer or otherwise belonging to Employer, its successors or assigns.

                  7.3. NONCOMPETITION. Employee shall not use any of the
Confidential Information to compete with Employer in connection with a
business or enterprise of any kind, foreign or domestic, profit or
non-profit, as an investor, partner, shareholder, LLC member, employee,
agent, consultant or independent contractor. Nothing in this Section 7.3
shall be construed to limit the more general prohibitions against
unauthorized use or disclosure of the Confidential Information contained in
other sections of this Agreement.

                  7.4. NOTIFICATION OF NEW EMPLOYER. Employer shall have the
right to notify any actual or potential future employer of Employee of
Employee's rights and obligations under this Section 7 of the Agreement.
Employee expressly authorizes such disclosure and waives any claims Employee
may have against Employer resulting from the disclosure of Employee's
obligations under this Section 7 to an actual or potential future employer of
Employee.

                                       4
<PAGE>

                  7.5. OTHER AGREEMENTS. Employee represents that the
performance of all the terms of this Agreement will not breach any agreement
to keep in confidence proprietary information acquired by Employee in
confidence or in trust prior to employment with Employer. Employee has not
and shall not enter into any oral or written agreement in conflict with this
Agreement.

                  7.6. EQUITABLE REMEDIES. Employee agrees that it would be
impossible or inadequate to measure and calculate Employer's damages from any
breach of the covenants set forth in this Section 7 of the Agreement.
Accordingly, Employer shall have available, in addition to any other right or
remedy available under law or equity, the right to obtain any injunction from
a court of competent jurisdiction restraining such breach or threatened
breach and to specific performance of any such provision of this Section 7.
Employee further agrees that no bond or other security shall be required in
obtaining such equitable relief and consents to the issuance of such
injunction and to the ordering of specific performance.

        8. DISPUTE RESOLUTION. Employee and Employer shall use their best
efforts to settle any disputes regarding the rights or obligations of the
parties under this Agreement through negotiation and agreement. Any disputes
which cannot be settled in this manner shall be conclusively determined by
binding arbitration. The arbitration shall be conducted as follows:

                  8.1. BINDING ARBITRATION. Any dispute between the parties
shall be submitted to, and conclusively determined by, binding arbitration in
accordance with this Section 8. The provisions of this section shall not
preclude any party from seeking injunctive or other provisional or equitable
relief in order to preserve the status quo of the parties pending resolution
of the dispute, and the filing of an action seeking injunctive or other
provisional relief shall not be construed as a waiver of that party's
arbitration rights. The arbitration of any dispute between the parties to
this Agreement shall be governed by the provisions of the California
Arbitration Act (California Code of Civil Procedure sections 1280, ET SEQ.),
excluding the provisions of Code of Civil Procedure section 1283.05.

                  8.2. INITIATION OF ARBITRATION. In the case of any dispute
between the parties to this Agreement, either party shall have the right to
initiate the binding arbitration process provided for in this section by
serving upon the other party a demand for arbitration. Notwithstanding any
other provision of law, in order to be enforceable a demand for arbitration
must be served within sixty (60) days of the date on which a party discovers,
or reasonably should have discovered, facts giving rise to a dispute as
defined above.

                  8.3. SELECTION OF ARBITRATORS. Within thirty (30) days of
service of a demand for arbitration by either party to this Agreement, the
parties shall endeavor in good faith to select a single arbitrator. If they
fail to do so within that time period, each party shall have an additional
period of fifteen (15) days in which to appoint an arbitrator and those
arbitrators within fifteen (15) days shall select an additional arbitrator.
If any party fails to appoint an arbitrator or if the arbitrators initially
selected by the parties fail to appoint an additional arbitrator within the
time specified herein, any party may apply to have an arbitrator appointed
for the party who has failed to appoint, or to have the additional arbitrator
appointed, by the presiding judge for the Superior Court, Sacramento County,
California. If the presiding judge,

                                       5
<PAGE>

acting in his or her personal capacity, is unable or unwilling to appoint the
additional arbitrator, that arbitrator shall be selected in accordance with
California Code of Civil Procedure section 1281.6.

                  8.4. LOCATION OF ARBITRATION. Any arbitration hearing shall
be conducted in Sacramento County, California.

                  8.5. APPLICABLE LAW. The law applicable to the arbitration
of any dispute shall be the law of the State of California, excluding its
conflicts of law rules.

                  8.6. ARBITRATION PROCEDURES. Except as otherwise provided
in this section, the arbitration shall be governed by the California
Arbitration Act (Code Civ. Proc. SectionsSECTIOns 1280 et seq.), excluding
the provisions of Code of Civil Procedure section 1283.05. In addition,
either party may choose, at that party's discretion, to request that the
arbitrators resolve any dispositive motions prior to the taking of evidence
on the merits of the dispute. By way of example, such dispositive motions
would include, but not be limited to, those which would entitle a party to
summary judgment or summary adjudication of issues pursuant to Code of Civil
Procedure section 437c or resolution of a special defense as provided for at
Code of Civil Procedure section 597. In the event that a party to the
arbitration requests that the arbitrators resolve a dispositive motion, the
arbitrators shall receive and consider any written or oral arguments
regarding the dispositive motion, and shall receive and consider any evidence
specifically relating thereto, and shall render a decision thereon, before
hearing any evidence on the merits of the dispute.

                  8.7. LIMITATION ON SCOPE OF ARBITRATORS' AWARD OR DECISION.
Employer and Employee agree that if the arbitrators find any disputed claim
to be meritorious, the arbitrators shall have the authority to order legal
and/or equitable relief appropriate to the claim, but that in no event shall
the arbitrators have authority to award punitive or exemplary damages.

                  8.8. COSTS OF ARBITRATION; ATTORNEYS' FEES. Each party
shall bear equally the costs of the arbitration and shall bear its own
attorneys' fees. However, Employer and Employee agree that the arbitrators,
in their discretion, may award to the prevailing party the costs, including
the costs of the arbitration, and attorneys' fees incurred by that party in
participating in the arbitration process.

                  8.9. ACKNOWLEDGMENT OF CONSENT TO ARBITRATION. NOTICE: BY
INITIALING IN THE SPACE BELOW, YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING
OUT OF THE MATTERS INCLUDED IN THIS "DISPUTE RESOLUTION" SECTION DECIDED BY
NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY
RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY
TRIAL. BY INITIALING IN THE SPACE BELOW, YOU ARE GIVING UP YOUR JUDICIAL
RIGHTS TO DISCOVERY AND APPEAL UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED
IN THIS "DISPUTE RESOLUTION" SECTION. IF YOU REFUSE TO SUBMIT TO ARBITRATION
AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE
AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS
ARBITRATION PROVISION IS VOLUNTARY.

                                       6
<PAGE>

WE HAVE READ AND UNDERSTOOD THE FOREGOING AND AGREE TO SUBMIT DISPUTES
ARISING OUT OF THE MATTERS INCLUDED IN THIS DISPUTE RESOLUTION PROVISION TO
NEUTRAL ARBITRATION.

       INITIALS OF EMPLOYER'S AUTHORIZED REPRESENTATIVE
                                                               ------------
       INITIALS OF EMPLOYEE
                                                               ------------

         9.       MISCELLANEOUS.

                 9.1. NOTICES. Any notice under this Agreement shall be in
writing, and any written notice or other document shall be deemed to have
been duly given (i) on the date of personal service on the parties, (ii) on
the third business day after mailing, if the document is mailed by registered
or certified mail, (iii) one day after being sent by professional or
overnight courier or messenger service guaranteeing one-day delivery, with
receipt confirmed by the courier, or (iv) on the date of transmission if sent
by telegram, telex, telecopy or other means of electronic transmission
resulting in written copies, with receipt confirmed. Any such notice shall be
delivered or addressed to the parties at the addresses set forth below or at
the most recent address specified by the addressee through written notice
under this provision. Failure to give notice in accordance with any of the
foregoing methods shall not defeat the effectiveness of notice actually
received by the addressee.

                 9.2. FEES; PREJUDGMENT INTEREST. If the services of an
attorney are required by any party to secure the performance hereof or
otherwise upon the breach or default of another party to this Agreement, or
if any judicial remedy is necessary to enforce or interpret any provision of
this Agreement or the rights and duties of any person in relation thereto,
the prevailing party shall be entitled to reasonable attorneys' fees, costs
and other expenses, in addition to any other relief to which such party may
be entitled. Any award of damages following judicial remedy or arbitration as
a result of the breach of this Agreement or any of its provisions shall
include an award of prejudgment interest from the date of the breach at the
maximum amount of interest allowed by law.

                 9.3. CHOICE OF LAW, JURISDICTION, VENUE. This Agreement is
drawn to be effective in the State of California, and shall be construed in
accordance with California law. The exclusive jurisdiction and venue of any
legal action by either party under this Agreement shall be the County of
Sacramento, California.

                 9.4. AMENDMENT. The provisions of this Agreement may be
modified at any time by agreement of the parties. Any such agreement
hereafter made shall be ineffective to modify this Agreement in any respect
unless in writing and signed by the parties against whom enforcement of the
modification or discharge is sought.

                 9.5. WAIVER. Any of the terms or conditions of this
Agreement may be waived at any time by the party entitled to the benefit
thereof, but no such waiver shall affect or impair

                                       7
<PAGE>

the right of the waiving party to require observance, performance or
satisfaction either of that term or condition as it applies on a subsequent
occasion or of any other term or condition.

                 9.6. ASSIGNMENT. The parties agree that Employee's rights
and obligations under this Agreement are personal and not assignable. This
Agreement contains the entire agreement between the parties to it and shall
be binding on and inure to the benefit of the heirs, personal
representatives, successors and assigns of Employer.

                 9.7. INDEPENDENT COVENANTS. All provisions herein concerning
unfair competition and confidentiality shall be deemed independent covenants
and shall be enforceable without regard to any breach by Employer unless such
breach by Employer is willful and reckless.

                 9.8. ENTIRE AGREEMENT. This document constitutes the entire
agreement between the parties, all oral agreements being merged herein, and
supersedes all prior representations and written agreements. There are no
representations, agreements, arrangements, or understandings, oral or
written, between or among the parties relating to the subject matter of this
Agreement that are not fully expressed herein.

                 9.9. SEVERABILITY. If any provision of this Agreement is
held by a court of competent jurisdiction to be invalid or unenforceable, the
remainder of the Agreement which can be given effect without the invalid
provision shall continue in full force and effect and shall in no way be
impaired or invalidated.

                 9.10. CAPTIONS. All paragraph captions are for reference
only and shall not be considered in construing this Agreement.

DATED:       May 3, 1999

THE RICEX COMPANY                      EMPLOYEE

By:
   ------------------------------      --------------------------------------
      Daniel L. McPeak                 Daniel L. McPeak, Jr.
Its:  Chief Executive Officer          Address:
                                               ---------------------------

                                       --------------------------------------

                                       8

<PAGE>

EXHIBIT 10.39

SCHEDULE TO IDENTICAL DOCUMENTS FILED

Todd C. Crow
Ike Lynch

                                       9

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