Document:

Exhibit 10.20

    
      

    

     

    
      	
              [*]
                designates
                portions of this document that have been omitted pursuant to a
                request

              for
                confidential treatment filed seperately with the
                Commission

            

    

     

    DISTRIBUTION
      AGREEMENT

    
      Exhibit
        10.20

       

    

      (RIGHT
        OF
        FIRST OFFER AND RIGHT OF FIRST REFUSAL)

     

    This
      Distribution Agreement (Right of First Offer and Right of First Refusal)
      (“Agreement”)
      is
      entered into by and between NutraCea, a California corporation with principal
      offices at 1261 Hawk’s Flight Court, El Dorado Hills, CA 95762 and W.F. Young,
      Inc., a Massachusetts corporation with principal address at 302 Benton Drive,
      East Longmeadow, MA 01028-5990 (“W.F.
      Young”).
      The
      parties agree as of April 12, 2005 (“Effective
      Date”)
      as
      follows:

    

    

    1.     Background
      and Purpose.
      Pursuant to the letter of intent signed by the parties February 10, 2005, and
      in
      conjunction with the Assignment of Interests entered into by and between
      NutraCea, Nutraglo Incorporated, a Nevada corporation, NaturalGlo Specialty
      Products, LLC, a Delaware limited liability company, and W.F. Young, executed
      on
      the Effective Date of this Agreement (“Assignment”)
      and
      the Manufacturing Agreement entered into by and between NutraCea and W.F. Young
      on the Effective Date of this Agreement (“Manufacturing
      Agreement”,
      the
      parties wish to enter into an agreement to establish the rights and obligations
      of the parties as such rights relate to the manufacturing rights and the
      exclusive marketing and distribution rights for certain non-human supplement
      products, as more specifically defined herein.

    

    
      	
              2.

            	
              Definitions.
                

            

    

    

    2.1     “Cost-Plus”
means
      (i) [*]
      of
      NutraCea’s total costs of raw materials and manufacturing, plus (ii)
[*]
      of
      NutraCea’s packaging, labeling and shipping and transportation costs to
      manufacture the Products. 

    

    2.2     “Equine
      Flex+”
means
      the equine, anti-inflammatory, stabilized rice bran food
      supplements/nutraceutical products known as Flex+ and Flx+, as specified on
      the
      attached Exhibit A.

    

    2.3     “Excluded
      Products”
means
      the products listed on the attached Exhibit B. 

     

    2.4     “New
      Product”
      or “New
      Products”
      means
      (i) any equine stabilized rice bran food supplements/neutraceutical product,
      other than Equine Flex+, and (ii) any Equine Flex+ product for the non-equine,
      non-human market. “New Products” expressly excludes the Equine Flex + and
      Excluded Products. 

    

    2.5     “Technology”
means:
      (i) U.S. Patent Application No. 20030118672 entitled “Method for Treating Joint
      Inflammation, Pain and Loss of Mobility,” published on June 26, 2003, and
      assigned to NutraCea, any patents that may arise from the foregoing application,
      all continuations, continuations-in-part, reexamination, divisionals, reissues,
      and improvements thereto, and any foreign counterparts to any of the foregoing,
      together with the associated (ii) trade secrets, know-how, documentation and
      other technical information proprietary to NutraCea and related to the
      development of nutraceutical products containing stabilized rice bran and
      stabilized rice bran derivatives for use in non-human applications of such
      patent. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	
                [*]
                  designates
                  portions of this document that have been omitted pursuant to a
                  request

                for
                  confidential treatment filed seperately with the
                  Commission

              

      

       

       

      

          3.    Right
            of First Offer.
            If
            NutraCea desires to contact third parties to solicit a proposal for a
            New
            Product that NutraCea does not then produce or market, or desires to
            manufacture, distribute or market such a New Product, NutraCea shall
            first grant
            to W.F. Young the right to present a proposal for the New Product (“Right
            of First Offer”).
            Such
            right also includes the right of W.F. Young to submit an unsolicited
            proposal
            for a New Product. NutraCea and W.F. Young acknowledge and agree that
            the Right
            of First Offer does not apply to the Excluded Products or to proposals
            independently submitted by a third party (which independently submitted
            proposals shall be subject to the Right of First Refusal under Section
            4 and
            which proposals NutraCea shall not initiate or participate in anyway
            in the
            preparation of ). NutraCea shall notify W.F. Young in writing if NutraCea
            wishes
            to solicit or propose a New Product (“Right
            of First Offer Notice”).
            W.F.
            Young shall have sixty (60) days from receipt of such Right of First
            Offer
            Notice to submit a written proposal to NutraCea regarding the distribution
            and
            marketing of the New Product and the territory proposed by W.F. Young.
            Until the
            expiration of such sixty (60) day period, NutraCea shall not proceed
            directly or
            through a third party to market or distribute the New Product and shall
            not
            initiate, nor engage in, written or oral discussions with a third party
            for
            rights to distribute the Products. Upon receipt by NutraCea of a written
            proposal from W.F. Young, NutraCea shall have thirty (30) days to review
            such
            proposal and determine whether or not to accept such proposal, which
            acceptance
            shall be not unreasonably withheld. The parties acknowledge the substantial
            commitment made by W.F. Young in the marketing of Flex+ products and
            the value
            of W.F. Young brands (e.g. Absorbine and Absorbine Jr.). NutraCea shall
            inform
            W.F. Young of its acceptance or rejection of a proposal in writing along
            with
            the reasons therefor. In the event NutraCea accepts a proposal, NutraCea
            and
            W.F. Young shall enter into a separate agreement under which NutraCea
            shall
            grant to W.F. Young the worldwide (unless the proposal specifically identifies
            a
            smaller territory) marketing and distribution rights for such New Product
            and
            such separate agreement shall provide for a term that is no longer than
            the term
            of this Agreement. In the event that NutraCea declines the proposal,
            NutraCea
            may either market and distribute the New Product directly or may enter
            into
            discussions with third parties for marketing and distribution rights
            for the New
            Product, however, W.F. Young shall have the Right of First Refusal, as
            specified
            below. In the event that W.F. Young declines to submit a proposal after
            receipt
            of the Right of First Offer Notice, NutraCea may either market and distribute
            the New Product directly or may enter into discussions with third parties
            for
            the marketing and distribution rights for such new product. In the event
            that
            NutraCea wishes to enter into an agreement with a third party, W.F. Young
            shall
            be granted a Right of First Refusal pursuant to the terms and conditions
            of
            Section 4 below.

        

          4.    Right
            of First Refusal.
            NutraCea hereby grants to W.F. Young a right of first refusal: (i) in
            the event
            that a third party independently contacts NutraCea regarding marketing
            and
            distribution rights for a New Product; and (ii) in the event that W.F.
            Young
            does not exercise its Right of First Offer and NutraCea subsequently
            enters into
            discussions with a third party for marketing and distribution rights
            for such
            New Product (“Right
            of First Refusal”).
            NutraCea and W.F. Young acknowledge and agree that the Right of First
            Refusal
            does not apply to the Excluded Products. NutraCea shall notify W.F. Young
            in
            writing in the event that NutraCea receives a bona fide offer from a
            third party
            to market and distribute the New Products (“Right
            of First Refusal Notice”).
            Such
            notice shall specify the price, terms and conditions of the third party
            offer,
            and the identity of the offeror. W.F. Young shall have thirty (30) days
            after
            receipt of the Right of First Refusal Notice to accept the proposal on
            the same
            terms and conditions as the offer and obtain the worldwide (unless the
            offer
            specifically identifies a smaller territory) marketing and distribution
            rights
            for such New Product. In the event that W.F. Young declines the offer
            on the
            terms presented or W.F. Young does not respond within such thirty (30)
            day
            period, W.F. Young shall be deemed to have not accepted the Right of
            First
            Refusal and NutraCea may enter into an agreement with such third party
            on the
            same material terms and conditions as set forth in the Right of First
            Refusal
            Notice. In the case of a proposal independently submitted by a third
            party to
            NutraCea to which Section 3 does not apply, W.F. Young shall have a forty-five
            (45) day period to respond under this section instead of thirty (30)
            days.

      

       

    

    5.     Retention
      of Other Rights.
      NutraCea shall retain all rights to the human market and all other rights not
      specifically granted or acknowledged herein. The parties agree that the 2001
      agreement (as defined in Section 11.2) shall be deemed to permit W.F. Young
      to
      utilize a “human label” (as required under applicable provisions of the Dietary
      Supplement Health and Education Act of 1994, as amended) in conjunction with
      the
      distribution of the Equine Flex+ product for classes of trade that service
      the
      equine industry (e.g., farm, feed, tack stores, chain pet stores and printed
      or
      online catalogs). 

    

    
      	
              6.

            	
              Manufacturing
                Rights.

            

    

    

    6.1.     Manufacturing
      Rights.
      NutraCea shall retain and W.F. Young hereby grants to NutraCea the exclusive
      rights to manufacture all New Products. The payment terms for all New Products
      shall be as provided in Sections 6.2 through 6.4, unless otherwise agreed in
      writing by the parties. In the event that NutraCea is unable to supply W.F.
      Young’s purchase requirements for any of the Products except in the event of
      Force Majeure (as defined below), NutraCea shall be responsible, within Sixty
      (60) days written notice from W.F. Young for obtaining replacement supply of
      the
      applicable New Products of substantially similar quality and specifications.
      For
      purposes of this Agreement, Force Majeure shall mean circumstances beyond the
      reasonable control of NutraCea, which prevents NutraCea from performing
      hereunder and shall include, but not be limited to, fires, floods, strikes,
      lockouts or other industrial disturbances, accidents, shipping difficulties,
      embargoes, inadequate supply of labor or material, war, civil commotion, riots,
      acts of God or of the public enemy, orders requests, regulations,
      recommendations or instructions of any foreign or domestic government authority.
      In the event that NutraCea is unable to obtain replacement New Products within
      such Sixty (60) day period, NutraCea shall grant to W.F. Young the non-exclusive
      limited license to manufacture or have manufactured the New Products that
      NutraCea is not able to provide to satisfy W.F. Young’s requirements only until
      such time as NutraCea is able to meet W.F. Young’s requirements.

     

    6.2.     Product
      Price for New Products.
      NutraCea shall manufacture the New Products and upon receipt of purchase orders
      from W.F. Young for the Products, NutraCea shall supply the Products to W.F.
      Young at a Cost-Plus price, as defined above.

    

    6.2.     Royalty
      for New Products.
      NutraCea shall be entitled to receive royalty payments from W.F. Young for
      each
      New Product equal to [*].
      

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
       

      
        	
                [*]
                  designates
                  portions of this document that have been omitted pursuant to a
                  request

                for
                  confidential treatment filed seperately with the
                  Commission

              

      

       

    

    
      	 	
              6.3

            	
              Payment.
                

            

    

    

    6.3.1    Payment
      for Products.
      Unless
      otherwise agreed to by the parties in writing, payment by W.F. Young to NutraCea
      shall be made as follows: [*].
      

    

    6.3.2    Royalty
      Payments.
      On
      a
      quarterly basis, W.F. Young shall pay to NutraCea any royalties earned hereunder
      within the relevant calendar quarter ending on March 31, June 30, September
      30
      or December 31. W.F. Young shall make such payments to NutraCea within thirty
      (30) days of the end of each quarter. W.F. Young shall include a royalty report
      with any such payment setting forth the calculation of such royalty.

    

    6.4.   Books;
      Records; Review.
      During
      the term of this Agreement and for six (6) years after it terminates or expires,
      W.F. Young shall keep books and records sufficient for NutraCea to verify the
      accuracy of any royalties hereunder. No more frequent than three (3) times
      per
      year and upon at least thirty (30) days prior notice to W.F. Young,
      NutraCea 
      (or an
      independent certified public accountant designated by NutraCea (the “Auditors”),
      may audit all books and records pertaining to this Agreement, at W.F. Young’s
      facility during normal business hours, for the purpose of verifying the accuracy
      of any royalty hereunder. In the event any such audit reveals a shortfall of
      royalties owed to NutraCea, W.F. Young shall pay to NutraCea the amount of
      such
      shortfall within ten (10) days of the conclusion of such audit and in the event
      such shortfall is in excess of 15 percent (15%), W.F. Young shall reimburse
      NutraCea for the costs of the audit by the Auditors at the time W.F. Young
      pays
      to NutraCea the amount of any royalty shortfall. In the event the audit
      determines there is a decrease in the royalties owed, then NutraCea shall pay
      to
      W.F. Young the amount of the decrease within ten (10) days of the conclusion
      of
      the audit. Prior to its engagement, the Auditors shall execute and deliver
      a
      confidentiality and non-disclosure agreement containing the usual and customary
      provisions protecting W.F. Young.

     

    7.    Representations
      and Warranties of W.F. Young.
      W.F.
      Young represents and warrants to NutraCea as follows:

    

    (a)        
      Organization
      and Standing.
      It is a
      corporation duly organized, validly existing and in good standing under the
      laws
      of the Commonwealth of Massachusetts;

    

    (b)        
      Power
      and Authority.
      It has
      the power and authority to execute, deliver and perform this Agreement and
      any
      Agreement executed in connection herewith; and

    

    (c)        
      Binding
      Agreement.
      This
      Agreement has been duly executed and delivered by W.F. Young and is the legal,
      valid and binding obligation of W.F. Young, enforceable against W.F. Young
      in
      accordance with its terms, except as enforcement may be limited by bankruptcy,
      insolvency, moratorium, reorganization, or other similar laws relating to or
      affecting the enforcement of creditor’s rights generally, and except of the
      availability of specific performance, injunctive relief or other equitable
      remedies as subject to the discretion of the court before which any such
      proceeding therefore may be brought.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              [*]
                designates
                portions of this document that have been omitted pursuant to a
                request

              for
                confidential treatment filed seperately with the
                Commission

            

    

     

    8.     Representations
      and Warranties of NutraCea.
      NutraCea represents and warrants to W.F. Young as follows:

    

    (a)        
      Organization
      and Standing.
      NutraCea is a corporation duly organized, validly existing and in good standing
      under the laws of the State of California. It has the power and authority to
      own
      and lease the properties now owned or leased by it and to conduct its
      business;

    

    (b)        
      Power
      and Authority.
      It has
      the power and authority to execute, deliver and perform this Agreement and
      any
      Agreement executed in connection herewith; and

    

    (c)        
      Binding
      Agreement.
      This
      Agreement has been duly executed and delivered by NutraCea and is the legal,
      valid and binding obligation of it and enforceable against it in accordance
      with
      its terms, except as enforcement may be limited by bankruptcy, insolvency,
      moratorium, reorganization or other similar laws relating to or affecting the
      enforcement of creditor’s rights generally and except of the availability of
      specific performance, injunctive relived or other equitable remedies as subject
      to the discretion of the court before which any such proceeding therefore may
      be
      brought. 

    

    (d)        
      Warranty
      of Products.
      NutraCea
      MAKES NO OTHER WARRANTIES OTHER THAN THOSE EXPRESSLY PROVIDED FOR HEREIN.
      NUTRACEA MAKES NO EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS
      FOR
      A PARTICULAR PURPOSE AS TO ANY PRODUCT. 

    

    9.     Non-competition.
      To the
      fullest extent permitted by law, NutraCea shall take reasonable actions
      reasonably acceptable to W.F. Young to prevent its customers from modifying,
      altering and offering for resale the Excluded Products in a manner that would
      have a material adverse effect on the exclusive marketing rights of W.F. Young
      granted hereunder or under the 2001 Agreement (as defined in Section 11.2).
      In
      addition, NutraCea shall, in a manner reasonably acceptable to W.F. Young,
      use
      its best efforts to cause its subsidiaries and affiliates to take reasonable
      action to prevent its customers from modifying, altering and offering for resale
      the Excluded Products in a manner that would have a material adverse effect
      on
      the exclusive marketing rights of W.F. Young granted hereunder or under the
      2001
      Agreement. 

    

    
      	
              10.

            	
              Indemnification.
                

            

    

    

    Each
      party agrees to defend, indemnify and hold harmless the other and the agents
      and
      representatives of the other party under the same terms and conditions and
      subject to [*]
      and
      other limitations as is provided for under section (7) of the 2001 Agreement
      (as
      defined in Section 11.2) from all claims, demands, causes of action, losses,
      costs, expenses (including, without limitation, reasonable attorney’s fees and
      costs) that the other may incur or become subject to, to the extent arising
      out
      of or based upon: (i) the breach of falsity of any representation or warranty
      made in this Agreement; or (ii) the breach of any covenant or agreement made
      by
      the Indemnifying Party in this Agreement. 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              11.

            	
              Term
                and Termination.
                

            

    

    

    11.1     Term.
      The
      initial term of this Agreement shall commence on the Effective Date and continue
      until the later to occur of (i) three (3) years, (ii) the expiration of the
      2001
      Agreement as defined in Section 11.2 below and all of the New Product agreements
      entered into pursuant hereto (“Initial
      Term”).
      After
      the expiration of the Initial Term, this Agreement shall automatically renew
      for
      additional one (1) year terms unless earlier terminated pursuant to the terms
      of
      this Agreement. 

    

    11.2     Termination
      for Breach; Termination of Other Agreements.
      In the
      event of a material breach of this Agreement, the non-breaching party shall
      have
      the right to terminate this Agreement if breaching party fails to cure such
      breach within thirty (30) days of receipt of written notice from the
      non-breaching party specifying the nature of the alleged breach. This Agreement
      shall terminate, except to the extent provided in Section 11.1, upon any
      termination of the Agreement dated May 1, 2001 by and between W.F. Young,
      NutraGlo, Inc., Wolcott Farms, Inc. and NutraCea, formerly known as NutraStar,
      and as subsequently amended (“2001 Agreement”).

    

    11.3    Mutual
      Termination.
      The
      parties may mutually terminate this Agreement at any time. 

    

    11.4    Effect
      of Termination.
      Upon
      any termination of this Agreement by either party, the Right of First Offer
      and
      Right of First Refusal shall terminate effective upon the date of termination
      of
      this Agreement. Any accrued but unpaid amounts owed to NutraCea under this
      Agreement by W.F. Young shall be paid to NutraCea within Thirty (30) days of
      the
      termination date of this Agreement. 

    

    
      	
              12.

            	
              Confidentiality.

            

    

    

    12.1     Confidential
      Information.
      W.F.
      Young and NutraCea each acknowledges that in the course of performing its duties
      hereunder, it shall receive Confidential Information which is valuable and
      proprietary to the other. Confidential Information includes without limitation
      written or oral information, sales figures, business plans, marketing plans,
      customer support materials, software or other customer support programs,
      customer support training or procedures and other customer support information,
      product plans, upgrade information, product sell-rate, illustrations,
      prototypes, models, whether patentable or unpatentable, trade secrets, know-how,
      concepts and other data, trademarks, copyrights, design features, or
      configuration of any kind, procedures, demonstrations, methods, processes,
      uses,
      manufacturing information, techniques, formulas, improvements, research and
      development data, pamphlets, books, reports or other documents, testing or
      inspection procedures, apparatuses, compounds, compositions, combinations,
      programs, software and works of authorship, whether discovered, conceived,
      developed, made or produced, and whether obtained directly or through inspection
      of any sample. The Confidential Information of each party is regarded as highly
      valuable and is now known publicly. Its continued value depends, in part, on
      retaining its confidential nature.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    12.2     Limited
      Use.
      Each
      party agrees that, continuing for a period of five (5) years after disclosure
      of
      the Confidential Information, each party shall not use or disclose any
      Confidential Information of the other party except in the authorized performance
      of this Agreement, without the prior written consent of the other party. At
      all
      times each party shall treat such information as it would its own confidential
      or proprietary information. Each party shall limit dissemination of and access
      to the Confidential Information of the other the personnel to whom disclosure
      is
      necessary for the performance of such parties duties hereunder. Each party
      agrees that no disclosure shall be made to any of its personnel without first
      obtaining such person’s agreement to the terms of this Agreement. 

    

    12.3     Return
      of Tangible Information.
      Each
      party agrees that all tangible information and property concerning the
      Confidential Information shall remain the exclusive property of the other party.
      No documents or other data relating to such Confidential Information shall
      be
      copied or reproduced without the prior written consent of an authorized employee
      of the other party unless required for the performance of the first party’s
      duties under this Agreement. At the request of either party, and upon the
      expiration of the terms of this Agreement, the other party shall immediately
      return to the requesting party all documents and other materials containing
      or
      evidencing the Confidential Information of the requesting party, including
      all
      copies, whether electronic or hard copy and permanently erase all of such
      records contained on electronic or other media not so delivered.

    

    
      	
              13.

            	
              Miscellaneous
                Provisions.

            

    

    

    13.1    Governing
      Law.
      This
      Agreement shall be governed by the laws of the State of New York,
      notwithstanding its conflict of law principles. The parties agree that any
      dispute hereunder shall be settled by arbitration in New York, New York,
      pursuant to the rules of the American Arbitration Association. Any arbitration
      ruling issued pursuant to this section may be enforced in any court of competent
      jurisdiction.

     

    13.2    Entire
      Agreement.
      This
      Agreement, along with the Assignment, the Manufacturing Agreement any and all
      documents expressly referred to and incorporated herein constitutes the entire
      agreement between the parties regarding the matters contained herein, all oral
      agreements regarding such Agreement being merged herein, and supersedes all
      prior representations made by any of the parties hereto with regard to such
      Agreement. 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 in this Agreement
      or the other agreements referenced herein. 

    

    13.3     Modification.
      The
      provisions of this Agreement may not be modified at any time unless agreed
      to in
      writing by all parties.

    

    13.4     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
      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.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    13.5     Assignment.
      This
      Agreement shall not be assigned by any party without the prior written consent
      of the other parties. Any assignment contrary to the provisions of this
      Agreement shall be deemed a default under this Agreement, allowing the
      nondefaulting parties to exercise all remedies available under law.

    

    13.6    Successors.
      Subject
      to the provisions otherwise contained in this Agreement, this Agreement shall
      inure to the benefit of and be binding on the successors and assigns of the
      respective parties.

    

    13.7     No
      Third Party Beneficiaries.
      Nothing
      in this Agreement, whether express or implied, is intended to confer any rights
      or remedies under or by reason of this Agreement on any persons other than
      the
      parties to it and their respective successors and assigns, nor is anything
      in
      this Agreement intended to relieve or discharge the obligation or liability
      of
      any third persons to any party to this Agreement, nor shall any provision give
      any third persons any right of subrogation or action against any party to this
      Agreement.

    

    13.8    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 (a) on the date of
      personal service on the other party, (b) on the third business day after
      mailing, if the document is mailed by registered or certified mail, or
      (c) one day after being sent by professional or overnight courier or
      messenger service guaranteeing one-day delivery, with receipt confirmed by
      the
      courier. Any such notice shall be delivered or addressed to the other party
      at
      the addresses set forth above 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.

    

    13.9     Attorneys’
      Fees.
      If the
      services of an attorney are required by any party to secure the performance
      of
      this Agreement or otherwise upon the breach or default of one or more parties
      to
      this Agreement, or if any judicial remedy or arbitration 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.

    

    13.10     Counterparts.
      This
      Agreement may be executed in any number of counterparts with the same effect
      as
      if the parties had all signed the same document. All counterparts shall be
      construed together and shall constitute one agreement.

    

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

    

    13.12     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.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    13.13     Publicity.
      Except
      as otherwise provided herein or required by law, no party shall originate any
      publication, news release or other public announcement, written or oral, whether
      in the public press, stockholders' reports, or otherwise, relating to this
      Agreement or to any related agreement hereunder, or to the performance hereunder
      or any such agreements, without the prior written approval of the other party,
      which approval shall not be unreasonably withheld.

    

    

    [SIGNATURE
      PAGE TO FOLLOW]

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    
      	
              NUTRACEA

            	 
	
              a
                California Corporation 

            	 
	 	 
	 	 
	 	 
	
              /s/
                Bradley D. Edson

            	 
	
              By:
                Bradley D. Edson

            	 
	
              Title:
                President

            	 
	 	 
	 	 
	
              W.F.
                YOUNG, INC.

            	 
	
              a
                Massachusetts corporation

            	 
	 	 
	 	 
	 	 
	
              /s/
                Adam D. Raczkowski

            	 
	
              By:
                Adam D. Raczkowski

            	 
	
              Title:
                Executive VP and COO

            	 
	 	 
	 	 
	
              NUTRAGLO
                INCORPORATED

            	 
	
              a
                Nevada corporation

            	 
	 	 
	 	 
	 	 
	
               /s/
                Bradley D. Edson

            	 
	
              By:
                Bradley D. Edson

            	 
	
              Title:
                Authorized Agent

            	 
	 	 

    

    

    [SIGNATURE
      PAGE TO DISTRIBUTION AGREEMENT]

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    Equine
      Flex+

    

    Equine
      Flex+ products for the equine market consist of the following, and include
      any
      other equine Flex+ product in other forms or containers, under any brand owned
      or licensed to W.F. Young now or in the future. Such term includes, but is
      not
      limited to, the contemplated liquid form of Equine Flex+.

    

    

    
      	
              Product

            
	 
	 
	
              FLEX+
                and FLX+ Powder - Equine

            
	
              30
                day container

            
	
              60
                day container

            
	
              150
                lbs. bulk container

            
	 
	
              FLEX+
                and FLX+ Pellets - Equine

            
	
              30
                day container

            
	
              60
                day container

            
	
              120
                day container

            
	
              150
                lbs. bulk container

            
	 
	 
	 

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
       

      
        	
                [*]
                  designates
                  portions of this document that have been omitted pursuant to a
                  request

                for
                  confidential treatment filed seperately with the
                  Commission

              

      

       

    
      Exhibit
        B

    

    Excluded
      Products

    ________________________________________________________________________

    

    [*]

     

     

    11Exhibit 10.22

    
      

    

     

    
      	
              [*]
                designates
                portions of this document that have been omitted pursuant to a
                request

              for
                confidential treatment filed seperately with the
                Commission

            

    

     

    Exhibit
      10.22

    SUPPLY
      AND DISTRIBUTION 

    AGREEMENT

    

    This
      Supply and Distribution Agreement (“Agreement”)
      is
      made to be effective as of November 4, 2005, (“Effective
      Date”)
      by and
      between NutraCea, a California corporation with principal address at 1261 Hawk’s
      Flight Court, El Dorado Hills, CA 95762 (“NutraCea”)
      and T.
      Geddes Grant, a Jamaican corporation with principal address at 109 Marcus Garvey
      Drive, Jamaica, W.I. The parties agree as of the Effective Date as
      follows:

    

    
      	
              1.

            	
              Background
                and Purpose.

            

    

    

    1.1   Distributor.
      Distributor currently provides packaging for the Government of Jamaica for
      various food products. Distributor wishes to package and distribute NutraCea’s
      stabilized rice bran solubles products, as more specifically defined below,
      for
      a school lunch program. Distributor has adequate facilities and personnel to
      fully and adequately market and distribute the Product (as defined below) in
      the
      Territory.

    

    1.2   NutraCea.
      NutraCea is a nutritional foods company that develops proprietary and patented
      nutraceutical products for human and animal consumption. NutraCea possesses
      proprietary technology to stabilize rice bran and an additional process to
      convert and enhance stabilized rice bran into proprietary products, including
      fiber and predigested fiber solubles. NutraCea actively promotes its products
      and requires an effective distribution network. NutraCea wishes to enter into
      the Jamaican market.

    

    1.3   Supply
      of Materials and Distribution of Products.
      NutraCea and Distributor wish to enter into an agreement under which NutraCea
      will supply and Distributor will purchase raw product materials to Distributor
      for hydration and packaging and distribution by Distributor. 

    

    1.4   Agreement.
      Distributor and NutraCea desire to enter into this Agreement to establish their
      agreement regarding the supply and distribution of Servings of the Products
      in
      the Territory (as defined below). Distributor will purchase, distribute and
      market the Product Servings only in the manner specified herein.

    

    2.    Definitions.
      As used
      herein, the following terms shall be defined in the manner set forth
      below:

    

    
      	 	
              2.1.

            	
              “Minimum
                Purchase Requirement”
                is defined in Section 5.4.

            

    

    

    2.2.         
      “Product”
means
      stabilized rice bran solubles that comply with all quality and other
      requirements customarily utilized for human consumption and as reasonably
      established by NutraCea from time to time, as described on Exhibit A, including,
      without limitation, the Product Specifications set forth therein. 

    

    2.3.   “Product
      Specifications”
means
      the specifications, quality and consistency standards, and other Product
      requirements set forth on Exhibit A, attached hereto.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    2.4.    “Territory”
means
      the country of Jamaica.

    

    2.5.    “Servings”
means
      the packaged and hydrated individual Product servings produced by Distributor
      pursuant to the terms of this Agreement and that are approved in advance and
      in
      writing by NutraCea after specific and complete disclosure by Distributor to
      NutraCea of all relevant product details. 

    

    
      	
              3.

            	
              Appointment
                

            

    

    

    3.1.    Appointment
      of Distributor.
      Subject
      to the provisions of this Agreement, including but not limited to prior approval
      by NutraCea of the Products and Product Servings as specified in Section 5.1
      below, NutraCea hereby appoints Distributor, and Distributor hereby accepts
      such
      appointment, as an independent, exclusive distributor for the sale and marketing
      of the Product Servings in the Territory. Distributor may market and distribute
      Product Servings only as set forth in this Agreement. Distributor further agrees
      not to distribute or market any items competitive with the Products and Servings
      or to distribute Products or Product Servings for sale outside of the Territory,
      except as expressly permitted by NutraCea pursuant to Section 3.2. This
      Agreement shall be exclusive so long as Distributor meets the Minimum Purchase
      Requirements.

    

    3.2.    NutraCea’s
      Rights.
      NutraCea reserves the right from time to time and in its sole discretion to
      appoint authorized distributors of Product and hydrated individuals packaged
      Product for areas outside of the Territory and to distribute Product and
      individually packaged Product outside the Territory directly to customers,
      using
      its own personnel or independent sales representatives. Upon any termination
      of
      Distributors exclusivity, pursuant to Section 3.1 or 4.1.1, NutraCea may
      directly or indirectly sell and market Products and Product Servings in the
      Territory and may appoint distributors to do the same.

    

    
      	
              4.

            	
              Term;
                Termination.

            

    

    

    4.1.    Term.
      The
      term of this Agreement shall commence upon the Effective Date and shall remain
      in force and effect for two (2) years, unless earlier terminated as set forth
      below (“Initial
      Term”).

    

     
      4.1.1.    Termination
      of Exclusivity.
      The
      appointment of Distributor as an exclusive distributor shall remain exclusive
      for so long as Distributor meets the Minimum Purchase Requirement, as defined
      below. In the event the Minimum Purchase Requirement is not met, Distributor
      immediately and with or without notice shall become a non-exclusive distributor
      in the Territory and NutraCea may appoint additional distributors in the
      Territory at its sole discretion. 

    

    4.2.   Termination.
      NutraCea
      may terminate this Agreement with ninety (90) days notice if Distributor fails
      to initiate good faith and commercially reasonable marketing of the Product
      Servings throughout the Territory within one hundred eighty (180) days of the
      beginning of the Effective Date. 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    4.3.    Immediate
      Termination.
      NutraCea may terminate this Agreement immediately upon the occurrence of any
      of
      the following events (i) Distributor is unable to obtain timely approval of
      the
      Product and Servings pursuant to Section 5.1 below, (ii) Distributor fails
      to
      make any payment due to NutraCea hereunder, which failure is not cured in full
      within ten (10) days after notice thereof from NutraCea, (iii) Distributor
      fails
      to cure any other breach of this Agreement (including failure to comply with
      Minimum Purchase Requirements) by Distributor within (30) days after notice
      thereof from NutraCea, (iv) Distributor becomes bankrupt, has a receiver
      appointed for it or its property, or makes an assignment for the benefit of
      creditors, (v) Distributor dissolves or is liquidated, or (vi) Distributor
      fails
      to satisfy the Minimum Purchase Requirement.

    

    4.4.    Effect
      of Termination.
      Termination or expiration of this Agreement shall in no way effect the rights
      or
      liabilities of either NutraCea or Distributor arising during the period prior
      to
      such termination or expiration or release Distributor from the obligation to
      make any payment due and owing to NutraCea, all of which obligations,
      Distributor hereby agrees to fulfill and perform. The provisions of this Section
      4.4 and Sections 10, 11, 12, 13, 14 and 16 shall survive expiration or any
      termination of this Agreement. Upon expiration or any termination of this
      Agreement, Distributor shall return to NutraCea all tangible materials and
      information of a proprietary or confidential nature disclosed to Distributor
      under this Agreement, and all copies thereof (including, without limitation,
      all
      electronic copies). NutraCea shall not be liable to Distributor for damages
      of
      any kind, including incidental or consequential damages, on account of the
      termination of this Agreement in accordance with this Section 4 even if advised
      of the possibility of such damages.

    

    5.    Obligations
      of Distributor.
      In
      furtherance of this Agreement, Distributor shall be responsible for the
      following, each of which is a material obligation of Distributor hereunder:
      

    

    5.1.    Regulatory
      Approval of Products.
      Distributor shall submit all appropriate applications and materials necessary
      to
      obtain regulatory approval required for the importation and sale of the Product
      and Product Servings in the Territory upon NutraCea’s delivery of any necessary
      documents for product registration and import permit application to Distributor.
      Distributor shall use its best efforts to obtain necessary approvals during
      calendar year 2005, after which this Agreement will expire at NutraCea’s option,
      if necessary or appropriate approvals are not obtained.

    

    5.2.    Marketing
      and Advertising Products.
      Distributor shall apply its best efforts to sell the Product Servings in the
      Territory. Distributor shall advertise and otherwise promote the Product
      Servings in a commercially reasonable manner and shall transmit appropriate
      Product information and promotional materials to its customers. Distributor
      shall develop sales, marketing, advertising and packaging for the Product
      Servings for distribution in the Territory, all of which shall be subject to
      the
      reasonable approval of NutraCea.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              [*]
                designates
                portions of this document that have been omitted pursuant to a
                request

              for
                confidential treatment filed seperately with the
                Commission

            

    

     

    5.3    Facilities;
      Conduct of Business.
      Distributor represents and warrants to NutraCea that it has, and will continue
      to maintain, the capacity, facilities and personnel necessary to perform its
      functions and to carry out its obligations under this Agreement and that it
      is
      ready and willing to do so. Distributor shall (i) conduct its business in a
      professional manner that reflects favorably on NutraCea and its Product and
      Product Servings, (ii) take all action necessary to prevent and avoid deceptive,
      misleading or unethical practices, (iii) make no false or misleading
      representations with regard to NutraCea or the Product Servings, (iv) not
      publish or participate in the publishing of any false, misleading or deceptive
      advertising material, and (v) make no representations, warranties or guaranties
      to anyone with respect to the specifications, features or capabilities of the
      Product or Product Servings that are inconsistent with the literature
      distributed by NutraCea.

     

    

        5.4.    Minimum
          Purchase. During
          the Initial Term and any subsequent term of this Agreement, Distributor
          shall
          purchase the following minimum quantity of Product each month while this
          Agreement remains in effect: at least
          [**] of
          the
          Product (“Minimum
          Purchase Requirement”).

      

        5.5    Purchase
          Forecasts.
          Distributor acknowledges that NutraCea must make long-term commitments
          for raw
          materials to complete the manufacture of the Product required to fulfill
          purchases of the Product by Distributor. NutraCea requires that Distributor
          provide accurate forecasts for supply of the Product. On or before the
          fifth
          (5th) day of each [**],
          Distributor shall provide NutraCea with (i) a tentative [**]
          month
          forecast of Distributor’s Product requirements for shipping during each of the
          next [**]
          months,
          commencing on the first day of [**]
          and (ii)
          a firm commitment of Product to be purchased by Distributor in the next
          [**]
          months.

    

     

    5.6.         
      Reports
      and Records.
      Distributor shall submit to NutraCea detailed monthly sales reports that shall
      include sales of the Product Servings (units and dollars). Distributor shall
      provide this report to NutraCea no later than the tenth (10th) day of the
      following month. 

    

    5.7.    Resale
      Prices.
      Distributor shall be free to unilaterally determine the resale prices for the
      Product Servings. Distributor shall, however, treat all customers equitably
      and
      shall not discriminate unlawfully among them in prices, terms or in any other
      manner. Distributor may not sell or market any Product or Product Servings
      in
      the United States or any area outside of the Territory, directly or indirectly,
      without NutraCea’s express prior written consent.

    

    5.8.   Product
      Complaints.
      Distributor shall promptly submit to NutraCea, detailed reports of any
      complaints received by Distributor relating to problems with Product or Product
      Servings advertising.

    

    5.9.   Notification.
      Distributor shall notify NutraCea in writing of any legal action, claim or
      proceeding involving the Product or Product Servings no later than ten (10)
      days
      after Distributor learns of such claim or proceeding. 

    

    

    5.11.   Legal
      and Regulatory
      Compliance.
      Distributor
      shall comply with all applicable laws and regulations in performing its duties
      hereunder and in any of its dealings with respect to the Product and Product
      Servings. Distributor
      shall obtain all appropriate governmental and legal permits and consents
      required for the importation by NutraCea of Product and the packaging and
      hydration necessary to create the Product Servings.

    

    
      	
              6.

            	
              Obligations
                of NutraCea.

            

    

    

    6.1.    Shipping
      of Products.
      NutraCea shall use its good faith efforts to ship the Products within a
      reasonable amount of time after receipt of Distributor’s order for the Product.
      Distributor shall provide NutraCea with a list of shipping instructions. All
      costs of shipment shall be billed to Distributor in accordance with Section
      8
      below. 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    7.    Orders.
      All
      purchase orders shall be submitted by Distributor to NutraCea along with
      proposed shipment dates. Orders may initially be placed by telephone or
      facsimile, provided that a signed confirming purchase order is received in
      writing by NutraCea within five (5) days after a telephonic or facsimile order.
      Orders for delivery of Product that are intended for shipment more than six
      (6)
      months from the date of the order, will be subject to the price modifications
      as
      detailed in Section 8.1 below. Distributor acknowledges that any shipment dates
      indicated in NutraCea’s written acceptance of purchase orders are estimates
      only. Cancellation of purchase orders shall be subject in each case to
      NutraCeas’s prior written consent.

    

    
      	
              8.

            	
              Price;
                Terms of Sale.

            

    

    

    8.1.    Price.
      For all
      Product purchased hereunder, Distributor shall pay NutraCea the amounts set
      forth on Exhibit B attached hereto. NutraCea may increase the price of any
      or
      all of the Product with a minimum of one hundred twenty (120) day written
      notice. NutraCea shall provide written notification to Distributor of all price
      increases. Price increases shall apply to all purchase orders received after
      the
      effective date of the price increase. Distributor shall provide NutraCea with
      reasonable assistance to determine the validity of price protection claims.
      

    

    8.2.    Terms.
      All
      Product shall be purchased F.O.B. at NutraCea’s designated warehouse and payment
      made by confirmed, irrevocable letter of credit denominated in United States
      Dollars. NutraCea shall provide the Product to Distributor, at NutraCea’s point
      of shipping and risk of loss shall pass to Distributor upon delivery of Product
      and proper documentation to the carrier at NutraCea’s shipping point.
      Distributor
      shall pay for all costs of shipment and transportation. Distributor shall
      specify the method of shipment; provided, that if Distributor fails to specify
      a
      method, NutraCea shall select the appropriate carrier.

    

    8.3.    Taxes;
      Whitholding.
      The
      price for each Product specified in Exhibit B does not include any excise,
      sales, use, value added or other taxes, tariffs or duties that may be applicable
      to the sale of the Product or Product Servings. All payments by Distributor
      shall be made free and clear of, and without reduction for, any withholding
      taxes. When NutraCea has the legal obligation to collect such taxes or duties,
      the appropriate amount may be added to Distributor’s invoice and paid by
      Distributor unless Distributor provides NutraCea with a valid tax exemption
      certificate authorized by the appropriate taxing authority. Any such taxes
      which
      are otherwise imposed on payments to NutraCea shall be the sole responsibility
      of Distributor. Distributor shall hold NutraCea harmless for any taxing
      authority or such other responsibility relative to this issue. 

    

    

    8.5.    No
      Modification by Purchase Order.
      All
      Product purchases will be on the terms and conditions specified herein. Nothing
      contained in any purchase order, shipping order or other document submitted
      by
      Distributor shall modify the terms of purchase.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    9.    Product
      Returns.
      Distributor shall coordinate all Product returns in accordance with NutraCea’s
      standard policies then in effect. If the reason for the Product return relates
      to a Product defect originated from Nutracea, NutraCea will credit Distributor
      the actual price paid by Distributor for the defective Product. Return of
      defective Product or destruction of the Product in Jamaica shall be
      pre-authorized in writing by NutraCea. 

    

    10.   Disclaimer
      of Warranties.
      Notwithstanding anything contained in this Agreement, neither party makes any
      representations or warranties of any kind to the other, whether express or
      implied (including without limitation any implied warranty of merchantability
      or
      fitness of products for a particular purpose).

    

    
      	
              11.

            	
              Trademarks
                and Other Proprietary Information.

            

    

    

    11.1.    Labeling.
      Distributor shall repackage and sell the Product Servings under the trade names,
      brands or trademarks approved by NutraCea. 

    

    11.2.    No
      Rights in Products, Trademarks or Copyrights.
      Distributor acknowledges that NutraCea owns and retains all of its trade names,
      trademarks and logos and all copyrights and other proprietary rights in all
      the
      Product and agrees that it will not at any time during or after the term of
      this
      Agreement assert or claim any interest in or do anything which may adversely
      affect the validity or enforceability of any trademark, trade name, copyright
      or
      logo belonging to or licensed to NutraCea. 

    

    11.3.    Obligation
      to Protect.
      Distributor shall use reasonable efforts to protect NutraCea’s proprietary
      rights and, at its own expense, shall reasonably cooperate in NutraCea’s efforts
      to protect its proprietary rights. Distributor shall notify NutraCea of any
      known or suspected breach of NutraCea’s proprietary rights that comes to
      Distributor’s attention.

    

    11.4.    Confidentiality.
      Distributor acknowledges that in the course of performing its obligations
      hereunder, it will receive information which is confidential and proprietary
      to
      NutraCea. Distributor agrees not to use such information except in performance
      of this Agreement and not to disclose such information to third parties. All
      information that is given to Distributor by NutraCea that is identified as
      confidential, and is marked accordingly, will be treated as such, and will
      not
      be disclosed to any other party. 

    

    

    13.    Relationship
      of the Parties.
      Nothing
      contained herein shall be construed to make Distributor the agent of NutraCea
      or
      NutraCea the agent of Distributor for any purpose, except as specifically set
      forth herein, and neither party shall have any right whatsoever to incur any
      obligations on behalf of or binding upon the other party, except as specifically
      set forth herein. Distributor agrees that at all times it shall act as an
      independent contractor in accordance with the terms of this Agreement and that
      it shall not at any time represent orally or in writing to any person or entity
      that it has any right, power or authority not expressly granted by this
      Agreement.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              15.

            	
              Miscellaneous.
                

            

    

    

    15.1.    Governing
      Law.
      The
      rights and obligations of the parties and the interpretation and performance
      of
      this Agreement shall be governed by the law of California, excluding its
      conflict of laws rules.

    

    15.2.    Counterparts.
      This
      Agreement may be executed in any number of counterparts with the same effect
      as
      if the parties had all signed the same document. All counterparts shall be
      construed together and shall constitute one agreement.

    

    15.3.    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
      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.

    

    15.4.    Entire
      Agreement.
      This
      document constitutes the entire agreement between the parties, all oral
      agreements being merged herein, and supersedes all prior representations. 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.

    

    15.5.    Nonassignability.
      This
      Agreement shall not be assigned by any party without the prior written consent
      of the other. Any assignment contrary to the provisions of this Agreement shall
      be null and void and be deemed a default under the Agreement, allowing the
      nondefaulting party to exercise all remedies available under law.

     

    15.6.    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 conform
      to the requirement that mailings be done by registered or certified mail shall
      not defeat the effectiveness of notice actually received by the
      addressee.

    

    NutraCea

    1261
      Hawk’s Flight Court

    El
      Dorado
      Hills, CA 95762

    United
      States

    Fax:
      (916) 933-7001

    Attention:
      Bradley Edson

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    15.7.    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.

    

    15.8.    Attorneys'
      Fees; Prejudgment Interest.
      If the
      services of an attorney are required by any party to secure the performance
      of
      this Agreement or otherwise upon the breach or default of another party to
      this
      Agreement, or if any judicial remedy or arbitration 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.

    

    15.9.    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.

    

    15.10.   Force
      Majeure.
      NutraCea shall not be responsible or liable to Distributor or its customers
      for
      any damages including without limitation, incidental and consequential damages,
      arising out of nonperformance or delay in performance of the terms and
      conditions herein due to acts of God, wars, riots, strikes, unavailability
      of
      suitable and sufficient components or materials, die or capacity or technical
      or
      weld failures and any unforeseen events beyond NutraCea’s control.

    

    15.11.   Export
      or Re-Export Requirements.
      Distributor and NutraCea shall comply with all export laws of the United States
      and Jamaica. Export directly or indirectly of the Product, or goods containing
      the Product to any other country shall be subject to applicable laws and written
      consent of NutraCea. Distributor shall hold NutraCea harmless and indemnify
      it
      for any fines, penalties or other liability, (including attorney’s fees) that
      result from Distributor’s failure to meet these obligations.

    

    15.12.   Arbitration.
      All
      disputes arising out of or in connection with this Agreement shall be finally
      settled under the Rules of Arbitration of the International Chamber of Commerce
      by one arbitrator appointed in accordance with said rules. Arbitration shall
      take place in Sacramento, California USA in the event NutraCea is the
      non-defaulting party and in Jamaica in the event Distributor is the
      non-defaulting party. Any proceeding under this Section shall be conducted
      in
      the English language. The award of the arbitrator shall be final and binding
      on
      both parties. The parties agree to bind themselves to carry out the award of
      the
      arbitrator.

    

    15.13.    Benefit;
      Assignment.
      This
      Agreement shall be binding upon the parties and their respective successors
      and
      assigns and shall inure to the benefit of the parties and their respective
      successors and permitted assigns. No party may assign nay of its rights or
      delegate any of its duties under this Agreement without the prior written
      consent of the other party and any assignment or delegation of this Agreement
      by
      either party without the prior written consent of the other party shall be
      void.
      In no event shall either party assign any of its rights or delegate any of
      its
      duties under this Agreement to any person other than a transferee of its
      interests pursuant to the Operating Agreement. 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    15.14.    No
      Third Party Beneficiaries.
      This
      provisions of this Agreement are intended to bind each party to the other party
      and, except for the Company, are not intended to create and do not create any
      rights in any other person, including without limitation , any employee of
      the
      Company. No person or entity, other than the Company, shall be deemed to be
      a
      third party beneficiary of this Agreement.

    

    15.15.    Headings.
      The
      headings set forth in this Agreement have been inserted for convenience of
      reference only, shall not be considered a part of this Agreement and shall
      not
      limit, modify or affect in any way the meaning or interpretation of this
      Agreement.

    

    15.16.     Language.
      This
      Agreement shall be written and construed in the English language.

    

    15.17   
      Binding Agreement. This Agreement is subject to the approval of the board of
      NutraCea and the board of T. Geddes Grant (Distributors) Limited and the
      execution of a Binding Agreement.

     

    
      	
                      
                T. Geddes Grant        
                

            	 	
                      
                NUTRACEA:        
                

            	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              /s/
                Michael Subratie

            	 	
              /s/
                Margie Adelman

            	 
	
              By

            	
              Michael
                Subratie

            	 	
              By:

            	
              Margie
                Adelman

            	 
	
              Title:

            	
              Director

            	 	
              Title:

            	
              Senior
                V.P.

            	 

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
       

      
        	
                [*]
                  designates
                  portions of this document that have been omitted pursuant to a
                  request

                for
                  confidential treatment filed seperately with the
                  Commission

              

      

       

    

    EXHIBIT
      A

    Products
      and Quantities

    

    

    [*]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
       

      
        	
                [*]
                  designates
                  portions of this document that have been omitted pursuant to a
                  request

                for
                  confidential treatment filed seperately with the
                  Commission

              

      

       

    

    EXHIBIT
      B

    Pricing

     

    [*]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

    

    Customer
      Limited Warranty

    

    

    [No
      Customer Limited Warranty attached]

     

    12

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