Document:

Exhibit
      10.3

    

    [*Designates
      portions of this document have been omitted pursuant to a request for

    confidential
      treatment filed separately with the Commission]

     

    LICENSE
      AND DISTRIBUTION AGREEMENT

     

    This
      License and Distribution Agreement (“Agreement”)
      is
      made to be effective as of June 22, 2007 (“Effective
      Date”)
      by and
      between NutraCea, a California corporation, with principal offices located
      at
      5090 North 40th
      Street,
      Suite 400, Phoenix, Arizona 85018 (“NutraCea”),
      and
      Pacific Advisors Holdings Limited, a company incorporated under the laws of
      British Virgin Islands, with principal offices at _______________
      (“Licensee”).
      The
      parties agree as of the Effective Date as follows:

     

    1.    Background
      and Purpose.
      

    

    1.1.    Licensee.
      Licensee and its affiliates have relationships with rice mills in the Republic
      of Indonesia, Vietnam, Thailand, Malaysia, Australia, New Zealand and Singapore
      (the “Territory”).
      

    

    1.2.    NutraCea.
      NutraCea owns rights to the stabilized rice bran products for human and animal
      consumption more fully described on Exhibit
      A,
      attached
      hereto (the “Products”).
      The
      Products are distributed under trademarks and trade names having valuable
      reputation and good will that belong exclusively to NutraCea. NutraCea actively
      promotes its Products and requires an effective distribution network.

    

    1.3.    Joint
      Entity.
      Licensee is a member of Grain Enhancement LLC (the “Joint
      Entity”),
      a
      limited liability company formed under the laws of the State of Delaware for
      the
      sole purpose of establishing and operating one or more Product manufacturing
      facilities in the Territory. In order to commercialize and distribute the
      Products in the Territory, Licensee wishes to obtain the License granted under
      this Agreement, and to then sublicense to the Joint Entity the License and
      the
      distribution rights granted under this Agreement, under the terms and conditions
      set forth hereunder.

     

    1.4.    License;
      Supply
      of Materials and Distribution of Products. NutraCea
      and Licensee wish to enter into an agreement in which NutraCea grants Licensee
      an exclusive and assignable license to utilize NutraCea’s
      proprietary stabilization equipment and all of NutraCea’s associated
patents,
      patent applications, copyrights, trade secret, know how or other intellectual
      property related to the production
      of the Products (collectively
      the “Intellectual
      Property”)
      as
      provided herein. Notwithstanding
      the foregoing, all rights to produce, operate and maintain such equipment shall
      remain with NutraCea. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.    License.

     

    2.1.    Grant
      of License; Right to Sublicense.
      NutraCea
      hereby grants to Licensee the sole, exclusive (even as to NutraCea),
[*]
      right
      and license (“the License”)
      to
      make, use, lease, have made, sell, offer for sale, distribute, and otherwise
      commercialize the Products within the Territory and a limited right to use
      the
      Intellectual Property solely for such purposes, subject in all cases to the
      terms and conditions contained herein. Notwithstanding anything to the contrary
      herein, NutraCea expressly retains the right to install, operate and maintain
      NutraCea’s stabilization equipment at Licensee’s facilities in the Territory in
      accordance with the terms of the Rice Bran Stabilization Equipment Lease between
      the parties of equal date herewith. [*]
      Licensee
      may grant sublicenses under the License; provided, that any such sublicense
      shall be subject to and consistent in all respects with the terms and provisions
      of this Agreement. The License shall be irrevocable while this Agreement is
      in
      effect. 

     

    2.2.1    Sublicense
      to Joint Entity.
      NutraCea hereby expressly authorizes Licensee to grant a sublicense (the
“Sublicense”)
      of the
      License to the Joint Entity on such terms to be agreed to by Joint Entity and
      Licensee; provided,
      however,
      that
      the License Fee payable by Licensee to NutraCea shall not be assignable to
      the
      Joint Entity or any other third party, and that the obligation to pay the
      License Fee shall remain the exclusive obligation of Licensee.

     

    2.2.2.    Assignment
      to Joint Entity.
      The
      parties hereto acknowledge that the Joint Entity may in the future seek to
      raise
      additional capital to increase its ability to commercialize the Products in
      the
      Territory by means of a public offering or private placement, or may seek to
      sell the Joint Entity or its assets, and further acknowledge that in connection
      with any such transaction, the Joint Entity will, in all likelihood, have to
      acquire the License. The parties further agree that any such fundamental
      transaction would be in the best interests of both parties to this Agreement
      and, therefore, that it is in their mutual best interests that Licensee have
      the
      ability and authority to assign this License to the Joint Entity as provided
      herein. No such assignment shall limit or reduce the obligation of Licensee
      to
      pay to NutraCea the License Fee specified in Section 8. Accordingly, NutraCea
      hereby agrees that if (A) the Joint Entity effects an underwritten public
      offering in which it or its successor receives gross proceeds equal to or
      greater than [*]
      U.S.
      Dollars ($ [*]),
      (B)
      the equity securities of the Joint Entity become listed or publicly traded
      on
      any of The Nasdaq Stock Market, the New York Stock Exchange, the American Stock
      Exchange, the London Stock Exchange, the Indonesia Stock Market, the
      Over-the-Counter Bulletin Board, or any other recognized stock exchange; (C)
      the
      Joint Entity completes a private equity offering in which the gross proceeds
      are
      equal to or greater than [*]
      U.S.
      Dollars ($[*]);
      or (D)
      the Joint Entity completes a merger, consolidation or reorganization with or
      into any other entity or entities, or a sale of all or substantially all of
      its
      assets, then, notwithstanding Section 12.1, Licensee shall be permitted to
      assign the entire License, and all of Licensee’s rights thereunder, to Joint
      Entity, provided that at the time of the assignment the Joint Entity pays
      NutraCea an additional one-time license fee of [*]
      U.S.
      Dollars ($ [*])
      (“Assignment
      Fee”).
      Licensee
      may not, however, delegate its obligations to pay the License Fee under Section
      8 to the Joint Entity, nor shall the guarantor under the guaranty listed in
      Section 8.1 be relieved from its obligations to NutraCea as a result of the
      foregoing assignment. 

     

    2.2.    Scope
      of License.
      NutraCea expressly reserves all rights to use, market, and commercialize and
      sell the Products under the same or similar names outside of the Territory.
      NutraCea
      reserves the right to use and license the Intellectual Property for
      use
      outside
      of the Territory. Nothing contained herein is intended to restrict or prevent
      NutraCea from selling or licensing products with similar or identical
      formulations outside of the Territory.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    2.3.    Reserved
      Rights.
      All
      rights not granted to Licensee
      hereunder
      are specifically reserved and retained by NutraCea. 

    

    2.4.    Reserved
      Trademarks. Licensee
      acknowledges
      that NutraCea has previously granted to various third parties, rights to market
      the Products under various other trade names outside of the Territory.
Licensee
      agrees
      that it shall have no rights with regard to such trademarks and that the License
      shall not prevent or interfere in any manner with the continued rights of
such
      third
      parties and NutraCea to use and commercialize products under such trademarks.
      Licensee
      agrees
      that it will not sell or market or distribute any products bearing any other
      NutraCea trademarks.
      Licensee
      agrees that all Products distributed under this Agreement within the Territory
      will acknowledge the existence of the License and NutraCea as the licensor
      by
      including the licensed marks (and associated logo) specified by NutraCea from
      time to time in exactly in the form provided by NutraCea on the packaging and
      in
      conformance with any and all reasonable usage policies provided to Licensee
      by
      NutraCea from time to time.

     

    2.5    
NutraCea’s
      Representations.
      NutraCea warrants and represents that: 

     

     
      (a)    the
      execution and delivery by NutraCea of this Agreement do not, and compliance
      by
      NutraCea with the provisions hereof will not, (A) conflict with or result in
      a
      breach or default under any of the terms, conditions or provisions of any
      license or other contract to which NutraCea is a party; or (B) violate any
      law
      applicable to NutraCea;

     

     
      (b)    the
      use
      of the Intellectual Property by Licensee and the Joint Entity in accordance
      with
      this Agreement will not infringe the rights of any individual, corporation,
      partnership, association, limited liability company, trust, estate or other
      entity (a “Person”);
      and

     

     
      (c)    no
      Person
      (including any affiliate of NutraCea) other than Licensee has the right to
      use,
      or license other Persons to use, the Intellectual Property in the Territory,
      and
      NutraCea will not use the Intellectual Property in the Licensed
      Territory.

     

    2.6    Licensee’s
      Representations.
      Licensee warrants and represents that the execution and delivery by Licensee
      of
      this Agreement do not, and compliance by Licensee with the provisions hereof
      will not, (i) conflict with or result in a breach or default under any of the
      terms, conditions or provisions of any license or other contract to which
      Licensee is a party; or (ii) violate any law applicable to Licensee.

    

    2.7    Competing
      Products and Equipment.
      In
      consideration for the grant of the License, Licensee hereby agrees that
for
      the
      term of [*],
      Licensee shall not produce or attempt to produce any equipment for the
      stabilization of rice bran, and that Licensee shall only use the rice bran
      stabilization technologies or equipment manufactured and supplied by
      NutraCea.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.    Ownership
      and Use of Intellectual Property.
      

    

    3.1.    NutraCea’s
      Ownership in the Intellectual Property.
      Licensee acknowledges
      that NutraCea owns the Intellectual Property and all rights, title, and interest
      therein other than the License granted hereunder, and that nothing in this
      Agreement shall give Licensee
      any
      right, title or interest in or to the Intellectual Property other than pursuant
      to the License granted herein. Notwithstanding anything to the contrary,
Licensee
      shall
      not: (i) take any action inconsistent with NutraCea’s ownership of the
      Intellectual Property; or (ii) sell, distribute, assign or otherwise transfer
      to
      any third party or encumber the Intellectual Property, except as expressly
      permitted herein; or (iii) use or sell any Products or other items licensed
      hereunder outside of the Territory. [*]

    

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

    

    3.3.    Confidentiality.
      Licensee acknowledges that in the course of performing its obligations
      hereunder, it will receive information which is confidential and proprietary
      to
      NutraCea. Licensee 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 Licensee by NutraCea will be treated as
      confidential and will not be disclosed to any other party. In addition, Licensee
      will receive, pursuant to this Agreement, certain financial and/or marketing
      information from NutraCea. Licensee shall not disclose this information to
      any
      third party without the prior written consent of NutraCea. At all times herein,
      Licensee shall treat such information as it would its own proprietary
      information.

    

    4.    Quality
      Control.

    

    4.1.    Adherence
      to Quality Standards.
      Licensee
      agrees
      that the nature and quality of all goods and services provided by Licensee
      in
      connection with the use of the Intellectual Property shall conform to the
      standards set by Licensee
      for
      its
      own goods and services (“Quality
      Standards”).
      Such
      Quality Standards shall be reasonable, shall be no less than the quality
      standards imposed by NutraCea in general, and shall be at least equal in quality
      to Licensee’
goods
      and services prior to the Effective Date. 

    

    4.2.    Limitations
      on Use.
      All
      uses of the Intellectual Property shall be in accordance with the provisions
      of
      this Agreement and Licensee
      shall
      not
      use the Intellectual Property in any manner that is inconsistent with the scope
      of the License.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.    Authorized
      Distributor.
      In
      addition to granting the License, NutraCea hereby authorizes Licensee to act
      as
      an independent, exclusive distributor for the sale and marketing of Products
      manufactured by NutraCea and sold to Licensee or the Joint Entity for re-sale
      in
      the Territory. The right of Licensee, or the Joint Entity if Licensee desires
      to
      distribute NutraCea’s Products through the Joint Entity, to distribute Products
      manufactured by NutraCea shall be limited to sales conducted the Republic of
      Indonesia, Vietnam, Thailand, Malaysia, and Singapore. Notwithstanding anything
      to the contrary contained herein, the rights of Licensee with respect to the
      sale and marketing of Products in Australia and New Zealand shall not commence
      until the Joint Entity has completed and commenced operating manufacturing
      facilities in the Territory for the production of stabilized rice bran at a
      level sufficient to immediatley ship stabilized rice bran in sufficient
      quantities to service Australia and New Zealand. Licensee, or if applicable
      the
      Joint Entity, may market and distribute Products it purchases from NutraCea
      only
      as set forth in this Agreement. Licensee further agrees not to distribute or
      market any items competitive with the Products or to distribute the Products
      for
      sale outside of the Territory. NutraCea agrees that the activities of Licensee
      and its affiliates in connection with producing, distributing and selling wheat
      flour that
      does
      not contain rice bran shall not be deemed to be a competitive activity. This
      distribution right shall continue for the term of this Agreement. 

     

    6.    Obligations
      of the Parties.
      In
      furtherance of this Agreement, each party shall be responsible for the
      following, each of which is a material obligation of that party hereunder:
      

     

    6.1.    Obligations
      of Licensee or its Sublicensee.

    

    6.1.1.    Regulatory
      Approval of Products.
      Licensee or the Joint Entity shall submit all appropriate applications and
      materials necessary to obtain regulatory approval required for the sale of
      the
      Products in the Territory upon NutraCea’s delivery of all the required technical
      data and appropriate documents for product registration to
      Licensee.

    

    6.1.2.    Marketing
      and Advertising Products.
      Licensee or the Joint Entity shall use commercially reasonable efforts to sell
      the Products in the Territory. Licensee or the Joint Entity shall advertise
      and
      otherwise promote the Products in a commercially reasonable manner and shall
      transmit appropriate Product information and promotional materials to its
      customers. Licensee or the Joint Entity shall develop sales, marketing,
      advertising and packaging for the Products for distribution in the Territory.
      Licensee or the Joint Entity will include the Products in one or more of its
      marketing materials and otherwise make the Products available to its customers.
      

    

    6.1.3.    Facilities;
      Conduct of Business.
      Licensee represents and warrants to NutraCea that, within [*]
      months
      after the date of this Agreement, it or the Joint Entity shall establish and
      thereafter maintain a minimum of [*]
      necessary
      to perform its functions and to carry out its obligations under this Agreement.
      Licensee or the Joint Entity shall (i) conduct its business in a professional
      manner that reflects favorably on NutraCea and the Products, (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 Products, (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 Products that are inconsistent
      with the literature distributed by NutraCea.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.1.4.    Reports
      and Records.
      If
      requested by Nutracea, Licensee shall submit to NutraCea monthly sales reports
      that shall include sales of the Products from all of Licensee’s locations
      detailed by Product (units and dollars). Licensee shall provide this report
      to
      NutraCea no later than the tenth (10th) day of the following month. Licensee
      shall maintain these records for at least [*]
      years
      from the date of creation of each record, contract and account as well as
      contracts and accounts relating to distribution of all Products, and will permit
      examination thereof by authorized representatives of NutraCea at all reasonable
      times for the purposes of an audit.

     

    6.1.5.    Resale
      Prices.
      Licensee or the Joint Entity shall be free to unilaterally determine the resale
      prices for the Products. Licensee or the Joint Entity shall, however, treat
      all
      customers equitably and shall not discriminate unlawfully among them in prices,
      terms or in any other manner. Neither Licensee nor the Joint Entity may sell
      or
      market any Products in the United States or any other area outside of the
      Territory, directly or indirectly, without NutraCea’s express prior written
      consent.

    

    6.1.6.    Product
      Training.
      Representatives of Licensee or the Joint Entity shall attend all training
      seminars relating to the Products provided by NutraCea to enhance Licensee’
knowledge of the Products, at Licensee’s expense. Licensee or the Joint Entity
      shall provide sufficient Product training to their sales personnel and customers
      to further the sale of Products. 

    

    6.1.7.    Notification.
      Licensee will notify NutraCea in writing of any claim or proceeding involving
      the Products no later than ten (10) days after Licensee learns of such claim
      or
      proceeding. Licensee shall also report promptly to NutraCea in writing all
      claimed or suspected Product defects received by Licensee.

    

    6.1.8.    Compliance
      with Law.
      Licensee and the Joint Entity shall comply with all applicable laws and
      regulations in performing its duties hereunder and in any of its dealings with
      respect to the Products.

     

    6.2.    Obligations
      of NutraCea.

    

    6.2.1.    Products
      Technical Data.
      NutraCea shall provide Licensee with all required documentation and data sheets
      for each of the Products necessary for production and registration approvals.
      

    

    6.2.2.    Sample
      Products.
      NutraCea shall ship samples of the Products to the Licensee, the Joint Entity
      or
      any of their respective current or potential customers. 

    

    6.2.3.    Training
      and Support; Advertising Materials.
      NutraCea shall provide to Licensee or the Joint Entity that amount of training
      and support that NutraCea deems appropriate to enable Licensee or the Joint
      Entity to sell the Products. NutraCea shall provide Licensee with existing
      documentation and technical information on the Products. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    6.2.4    No
      Competing Products in Territory.
      NutraCea currently manufactures and sells the Products in other countries
      outside of the Territory. In addition, NutraCea may hereafter license or
      otherwise grant the right to manufacture, sell, distribute or otherwise
      commercialize the Products outside of the Territory to other entities, including
      joint ventures or entities in which NutraCea has an economic interest (any
      entity, other than the Licensee, that receives from NutraCea, directly or
      indirectly, a license or other right to manufacture, sell, distribute or
      otherwise commercialize the Products or to otherwise exploit the Intellectual
      Property is herein referred to a “NutraCea Rights Holder”). NutraCea hereby
      agrees that neither it, nor any NutraCea Rights Holder shall have or be granted
      the right at any time during the term of this Agreement, directly or indirectly,
      to (i) import any Competing Product into the Territory, or (ii) sell or
      distribute a Competing Product to person or entity with knowledge that such
      person or entity may thereafter import into the Territory any Competing Product.
      NutraCea agrees that any agreement that it hereafter enters with any NutraCea
      Rights Holder shall prohibit the importation of a Competing Product into the
      Territory. NutraCea further agrees that, if any NutraCea Rights Holder is found
      to be importing, directly or indirectly, any Competing Product into the
      Territory, it will use its commercially reasonable efforts to enforce the
      prohibition in its agreements to terminate and prevent the importation of any
      Competing Product into the Territory. For the purposes of this Agreement, a
      “Competing Product” means (x) any Product, or (y) any substance, material or
      product that when sold in bulk contains or any Product. For example, the
      importation of SRB into the Territory by a NutraCea Rights Holder shall be
      prohibited. Likewise, the importation of wheat flour blended with stabilized
      rice bran is a Competing Product and is prohibited. However, the importation
      into the Territory of bakery products that are made from wheat flour blended
      with stabilized rice bran is not Competing Product and is therefore, not
      prohibited. 

    

    7.    Term
      and Termination.
      

    

    7.1.    Term.
      The
      License granted herein is [*]
      for
      the
      Territory. The distribution rights and obligations set forth in Section 5 shall
      terminate as set forth in Section 5. 

    

    7.2.    Termination
      Rights
      for
      Breach.
      Either
      Party may terminate this Agreement, upon written notice following the expiration
      of a thirty
      (30)
      day
      period to cure, in the event of any of the following: (i) the other party
      materially breaches this Agreement (including each party’s respective
      representations in Sections 2.5 and 2.6);
      (ii)
      the
      other party suspends or terminates its business; or (iii) the other party
      becomes subject to any bankruptcy or insolvency proceedings that are not
      dismissed within ninety (90) days after such proceedings are instituted.
      Notwithstanding the foregoing, any uncured breach under subsection 7.2(i) shall
      be grounds for terminating this Agreement only
      if
such
      a
      default materially and adversely affects the other party, its business or
      assets.

    

    7.3.    Effect
      of Termination.
      Upon
      termination of this Agreement, Licensee’s
      right
      to use the Intellectual Property shall be terminated, Licensee
      or the Joint Entity shall
      have 180 days to phase out all use of the Intellectual Property and to sell
      all
      remaining inventory of the Product. Termination of this Agreement shall in
      no
      way affect the rights or liabilities of either NutraCea or Licensee
      arising
      during the period prior to such termination or expiration, or release a party
      from the obligation to make any payment due and owing to the other under this
      Agreement, all of which obligations the party hereby agrees to fulfill and
      perform. In no event shall Licensee
      be
      entitled to any refund, offset, or return of any portion of the License Fee
      (defined below) upon termination, and any unpaid portion of the balance of
      the
      License Fee shall remain due and owing to the extent provided in Section 8.
      Each
      party shall return to the other all tangible materials and information of a
      proprietary or confidential nature disclosed to the party under this Agreement,
      and all copies thereof (including, without limitation, all electronic
      copies.) 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8.    License
      Fee; Guaranty.
      

    

    8.1.    License
      Fee Amount; Schedule of Payments.
      As
      consideration for the License and rights granted herein, Licensee
      shall
      pay NutraCea
      a fully
      paid up, one-time (other than with respect to the Assignment Fee) license
      fee of Five Million U.S. Dollars ($5,000,000) (“License
      Fee”).
      The
      License Fee shall accrue interest from the Effective Date until paid in full
      at
      a rate equal to 4.51863% per annum (the LIBOR rate in effect as of June 15,
      2007, as quoted in the London edition of the Financial Times). The accrued
      and
      unpaid interest and the License Fee shall both be due all due and payable by
      Licensee
      on the
      fifth anniversary of the commencement of stabilized rice bran production by
      the
      first rice bran stabilization facility established by Licensee or the Joint
      Venture.
      All
      payments shall be in U.S. Dollars. In order to secure Licensee’s obligations to
      pay the License Fee and related interest, Licensee shall cause the Guaranty
      in
      the form set forth in Exhibit
      C
      hereto
      be executed by a party acceptable to NutraCea.

    

    8.2.    Non-Assignable
      Obligation.
      As set
      forth in Section 2, Licensee may sublicense its rights hereunder to the Joint
      Entity; however the License Fee shall be the obligation of Licensee and shall
      not be delegable.

     

    9.    Protection.

     

    9.1.    Infringement.
      Licensee agrees
      to
      promptly notify NutraCea of any infringements, imitations, simulations or other
      illegal use or misuse of the Intellectual
      Property which
      come to Licensee’s
      attention. Licensee shall
      have the first right to institute and prosecute at its own expense suit for
      infringement(s)
      of
      the Intellectual Property in the Territory. NutraCea agrees to join as a party
      plaintiff in any such lawsuit initiated by Licensee,
      if
      requested by Licensee,
      with
      all costs,
      attorneys’
      fees and expenses to be paid by Licensee.
      However,
      if
      Licensee does
      not
      institute suit for material infringement(s) within one hundred eighty (180)
      days
      of receipt of written notice from NutraCea of NutraCea’s desire to bring suit
      for infringement
      of the
      Intellectual Property in
      the
      Territory in its own name and on its own behalf,
      then
      NutraCea may institute and prosecute such suit, at its own expense Licensee.
      In this
      event, Licensee shall
      cooperate
      in such
      action with NutraCea,
      at
      NutraCea’s expense,
      including, without limitation, joining as a party. Any money recovered by way
      of
      damages or otherwise with respect to such action shall be kept by the party
      which bore the cost of such action; or, in any case, where the parties have
      shared the cost, such money shall be shared in proportion to the cost borne
      by
      each party.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    9.2.    Assistance.
      The
      parties shall provide each other with all reasonable assistance in connection
      with any matter pertaining to the protection, enforcement or infringement of
      the
Intellectual
      Property used
      by
      Licensee, whether in the courts, administrative or quasi-judicial agencies,
      or
      otherwise.

    

    10.         
      Indemnity.

    

    10.1   Indemnity
      by Licensee.
      Licensee agrees to indemnify, defend, and hold harmless (including costs and
      attorneys’ fees) NutraCea and all of its officers, directors, employees and
      agents from and against (a) any breach by Licensee of any representation,
      warranty or agreement made in this Agreement, and (b) any and all claims by
      any
      third party resulting from Licensee’s acts, omissions or misrepresentations. In
      the event any Claim is brought against NutraCea which Claim, if determined
      adversely would entitle NutraCea to
      indemnity, the party with notice of the Claim shall provide notice to the other
      party specifying in detail the basics for the Claim and the facts pertaining
      thereto, Licensee shall vigorously defend such Claim and indemnify and hold
      harmless NutraCea from and against all liability, loss, damage, cost or expense
      arising therefrom. NutraCea, as applicable, shall have the right to employ
      counsel separate from counsel employed by Licensee in any such action and to
      participate in the defense thereof, provided that the fees and expense of such
      additional counsel shall be paid by NutraCea.

    

    10.2   Indemnity
      by NutraCea.
      NutraCea agrees to defend, indemnify and hold Licensee or the Joint Entity
      and
      all of their respective officers, directors, employees and agents harmless
      from
      and against any and all claims, damages, liabilities, costs and expenses,
      including reasonable legal fees, arising out of (a) any breach by NutraCea
      of
      any representation, warranty or agreement made in this Agreement; and (b) any
      claim that Licensee’s (or the Joint Entity’s) sale of the Products or the use of
      the Intellectual Property in accordance with this Agreement infringes on or
      violates the rights of any Person; provided however that NutraCea is under
      no
      obligation to defend, indemnify or hold Licensee or the Joint Entity harmless
      from any claim by any governmental body that use of the Intellectual Property
      infringes or violates the rights of such governmental body. Licensee shall
      give
      prompt written notice, cooperation and assistance to NutraCea in respect of
      any
      such claim, provided that the failure to give prompt notice shall not affect
      NutraCea’s indemnification obligation, except to the extent NutraCea is
      prejudiced by such failure. Licensee shall have the option to undertake and
      conduct the defense and/or settlement of any such claim or proceedings provided
      that no settlement of any such claim shall be made without the prior written
      consent of NutraCea.

    

    11.         
      Relationship
      of the Parties.
      Nothing
      contained herein shall be construed to make Licensee the agent of NutraCea
      or
      NutraCea the agent of Licensee 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. Licensee agrees that at all times it shall solicit orders
      for
      the Products 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.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    12.         
      Miscellaneous.

     

    12.1.        
      Assignment. This
      Agreement and the License herein granted shall be binding upon and inure to
      the
      benefit of the successors-in-interest of the respective parties. Neither this
      Agreement nor any interest hereunder shall be assignable by either party without
      the written consent of the other; provided, however, that either may assign
      this
      Agreement, or any part of its rights and obligations hereunder, to any Affiliate
      or to any corporation or entity with which such party may merge or consolidate,
      or to which it may transfer all or substantially all of its assets to which
      this
      Agreement relates, without obtaining the consent of the other
      party.

    

    12.2.        
      Notices.
      All
      notices required hereunder shall be sent by certified mail return receipt
      requested, express courier with a nationally recognized courier service or
      by
      telex confirmed by such certified mail, to the party to be notified at its
      following address or at such other address as shall have been specified in
      written notice from the party to be notified.

    
    

    
      
        If
          to
          NutraCea:

         

        NutraCea

        5090
          North 40th
          Street,
          Suite 400

        Phoenix,
          AZ 85018

        Attn:
          Brad Edson

      

    

    

    With
      a
      copy to:

     

    Weintraub
      Genshlea Chediak Law Corporation

    400
      Capitol Mall, Suite 1100

    Sacramento,
      CA 95818

    Attn:
      Chris Chediak

    

    If
      to
      Licensee:

     

    Pacific
      Holding Advisors Limited

    53
      Cairnhill Road

    Cairnhill
      Plaza #12-01

    Singapore
      229664

    Singapore

    

    With
      copy
      to:

    

    Troy
      & Gould

    1801
      Century Park East, 26th Floor

    Los
      Angeles, California 90067

    Attn:
      Istvan Benko

    

    12.3.        
      Entire
      Agreement.
      The
      foregoing (including the agreements and exhibits referenced herein) is the
      parties’ entire agreement, superseding all prior oral or written agreements and
      understandings with respect to the subject matter hereof. The terms set forth
      herein shall be severable and the failure of any distinct part will not void
      the
      remainder.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    12.4.        
      Modification
      and Amendment.
      This
      Agreement may be modified or amended only in writing and signed by both parties.
      

    

    12.5.        
      Survival.
      The
      provisions of this Agreement that by their terms or context are intended to
      survive termination of this Agreement, shall so survive the termination of
      this
      Agreement.

    

    12.6.        
      Governing
      Law.
      The
      parties agree that this Agreement shall be governed by the laws of the State
      of
      California. Licensee and NutraCea expressly agree that any action at law or
      in
      equity arising under this Agreement shall be filed only in the Courts of the
      State of California in a county of competent jurisdiction or the United States
      District Court in a California district of competent jurisdiction. The parties
      hereby consent and submit to the personal jurisdiction of such courts for the
      purposes of litigating any such action.

    

    12.7.        
      Recovery
      of Legal Fees and Costs.
      In the
      event any litigation is brought by either party in connection with this
      Agreement, the prevailing party in such litigation shall be entitled to recover
      from the other party all the costs, attorneys' fees and other expenses incurred
      by such prevailing party in the litigation.

    

    12.8.        
      Counterparts.
      This
      Agreement may be signed in one or more counterparts, each of which shall be
      deemed an original, but all of which together shall constitute one and the
      same
      Agreement.

    

    12.9.        
      Binding
      Agreement.
      This
      Agreement shall be binding upon and inure to the benefit of each of the parties
      hereto, and their respective legal successors and assigns. 

    

    12.10.        Waiver.
      Performance of any obligation required of a party hereunder may be waived only
      by a written waiver signed by the other party, which waiver shall be effective
      only with respect to the specific obligation described therein.

     

    12.11.        Severability.
      If one
      or more provisions of this Agreement are held to be unenforceable under
      applicable law, such provision shall be excluded from this Agreement and the
      balance of the Agreement shall be interpreted as if such provision were so
      excluded and shall be enforceable in accordance with its terms.

     

    12.12.        Publicity.
      Neither
      party shall the
      terms
      of
      this Agreement or make any public announcement regarding this Agreement or
      the
      subject matter contained herein without the prior written consent of the other
      party, except as may be required by applicable law, in which event, the
      disclosing party shall endeavor to give the non-disclosing party prompt notice
      in order to allow the non-disclosing party the opportunity to seek a protective
      order.
      Notwithstanding
      any of the foregoing to the contrary, the existence of this Agreement may be
      disclosed to a third party and the terms and conditions of this Agreement may
      be
      disclosed by a party to bona fide potential investors, acquirors or partners
      of
      such party in the course of such person’s due diligence investigation of such
      party, where such person has entered into a written non-disclosure agreement
      with such party that includes terms no less restrictive than those included
      herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    12.13.        Time. Time
      is
      of the essence in this Agreement.

    

    12.14        
      Further
      Action.
      The
      parties agree to take all action necessary or useful to complete and accomplish
      the intentions of this Agreement.

     

    [SIGNATURE
      PAGE TO FOLLOW]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      The
        authorized representatives of the parties have executed this Agreement as
        of the
        Effective Date

    

    
       

       

      
        	
                 NutraCea:

              	 	 Pacific
                Advisors Holdings Limited:

      

       

    

    
      	 By:	 	 	 By:	 
	 	 	 	 	 
	 Title:	 	 	 Title	 

    

     

     

     

     

     

     

     

     

    [SIGNATURE
      PAGE TO LICENSE AGREEMENT]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
      A

    

    Products

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    Products
      Literature

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      C

    

    GuarantyExhibit
      10.4

    

    [*Designates
      portions of this document have been omitted pursuant to a request
      for

     confidential
      treatment filed separately with the Commission]

    

    RICE
      BRAN STABILIZATION 

    EQUIPMENT
      LEASE

    

    This
      Rice
      Bran Stabilization Equipment Lease (“Lease”)
      is made
      entered into as of June __, 2007, (“Effective
      Date”)
      between Grain Enhancement, LLC, a
      Delaware limited liability company (“Joint
      Entity”),
      and
      NutraCea, a California corporation (“NutraCea”),
      on
      the following terms and conditions:

    

    1.    Lease
      of Equipment; Location.
      NutraCea hereby leases to Joint Entity and Joint Entity hereby leases from
      NutraCea the Equipment Specified in Section 2 on the terms and conditions set
      forth herein. The Equipment shall be installed, maintained, and operated by
      NutraCea at the Location (as defined in Section 6 below), and may not be moved
      by Joint Entity or by NutraCea from the Location. All costs and expenses related
      to the installation, maintenance, and operation of the Equipment shall be borne
      by Joint Entity. [*]

    

    2.    Equipment;
      No Transfer of Ownership.
      

    

    2.1.    Equipment.
      The
“Equipment”
subject
      to this Lease consists of the rice bran stabilization equipment, including
      various components thereof, developed by Nutracea for use in the production
      of
      stabilized rice bran (“SRB”).
      A
      list of the Equipment to be leased as of the Effective Date is listed on
Exhibit A
      attached
      hereto. With the written consent of the Joint Entity, in order to improve the
      performance or reliability of the Equipment, NutraCea may, from time to time,
      and at the expense of the Joint Entity, replace one or more components of the
      equipment listed on Exhibit A, or may supplement the equipment listed on Exhibit
      A with additional components or machinery. All new equipment hereafter installed
      to improve the Equipment or the operation of Joint Entity’s rice bran
      stabilization facility shall also be leased to Joint Entity and shall after
      such
      installation become “Equipment” for the purposes of this Lease. Exhibit A shall
      be amended from time to time to reflect any additions or deletions of equipment
      under this Section 1.

    

    2.2.    Ownership.
      Joint
      Entity acknowledges and agrees that NutraCea will retain legal title in and
      to
      the Equipment and all proprietary rights and intellectual property manifested
      or
      disclosed therein and shall control access to and use of the equipment, and
      that, except for its rights under this Lease, Joint Entity will have no right,
      title or interest in or to the Equipment or the proprietary rights and
      intellectual property manifested or disclosed therein. 

    

    3.    Term.
      The
      term of this Lease shall be for [*]
      years
      commencing on the Effective Date, or as extended by the mutual agreement of
      the
      parties, and on such terms and conditions as may be agreed upon. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.    Rent.
      

    

    4.1    [*]
      Payment.
      Joint
      Entity hereby agrees that the rental payment the Equipment listed on Exhibit
      A
      for the [*]
      term
      of
      this Lease shall be $ [*]
      (the
“Rent”). The entire amount of the Rent shall be payable in [*],
      due and
      payable within 30 days following the installation of the Equipment at the
      Location. 

    

    4.2    Additional
      Equipment.
      Any
      additional Equipment leased under Section 2.1 after the Equipment has been
      installed shall also be leased for a [*]
      lease
      payment equal to [*]
      such
      additional equipment. Any such additional rental payment shall be payable within
      30 days after the installation of the new equipment. 

    

    4.2    U.S.
      Dollars.
      All
      payments under this Lease shall be paid in U.S. Dollars to NutraCea at
      NutraCea’s address set forth below or at such other address as NutraCea may
      designate.

    

    5.    Net
      Lease.
      This
      Lease shall be a “net lease,” it being understood that NutraCea shall receive
      the Rent free and clear of any taxes, liens, charges or expenses of any nature
      whatsoever in connection with the ownership, maintenance, and operation of
      the
      Equipment pursuant hereto. In addition to the Rent payable pursuant hereto,
      Joint Entity shall pay all insurance premiums, operating charges, and any other
      charges, costs and expenses that may arise during the term of this Lease arising
      from the operation of the Equipment at the Location. Upon any failure of Joint
      Entity to pay any of the foregoing taxes and other expenses that materially
      and
      adversely affects NutraCea’s (i) title to the Equpment (including without
      limitation NutraCea’s ownership or protection of its proprietary rights or
      intellectual property rights), or (ii) ability to have such Equipment returned
      to NutraCea in accordance with this Lease, NutraCea shall have the same rights
      and remedies as otherwise provided in this Lease for the failure of Joint Entity
      to pay Rent. The foregoing shall not limit any other rights of NutraCea
      hereunder, including without limitation the rights of NutraCea under Sections
      11
      and 12.

    

    6.    Equipment
      Installation and Maintenance.
      

    

    6.1.   Installation.
      NutraCea shall properly install, [*],
      the
      Equipment at the rice mill facility listed in Exhibit
      B
      (the
“Rice
      Mill”).
      Joint
      Entity shall
      provide sufficient space and access to NutraCea personnel as necessary or useful
      for the proper installation of the Equipment at the Rice
      Mill.
      Joint
      Entity shall arrange, at Joint Entity’s expense and with the reasonable
      cooperation of NutraCea, make such utilities available at the Location to enable
      the Equipment to be installed and to thereafter to be operated in accordance
      with the specifications of the Equipment. Joint Entity agrees to take all action
      necessary to provide to NutraCea and its agents will have unrestricted access
      to
      the Location and the Equipment for the purpose of installing, maintaining,
      and
      operating the Equipment (including any additions to the Equipment subsequently
      installed under Section 2.1).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.2.   Maintenance
      and Repairs.
      The
      parties hereto agree and acknowledge that the failure of the Equipment to
      operate in the manner represented in Exhibit A will materially and adversely
      affect the Joint Entity’s operations. Accordingly, NutraCea agrees to service
      and maintain the Equipment on an ongoing basis in a manner that will enable
      the
      Equipment to operate at the maximum capacity specified on Exhibit A during
      the
      term of this Agreement. In order to maintain and repair the Equipment, the
      parties hereby agree as follows:

    

    (a)    NutraCea
      further agrees that it will initiate repairs of the Equipment within
[*]
      after
      receiving notification from Joint Entity of a need to repair the Equipment
      or to
      correct any deficiencies in the operation of the Equipment. NutraCea agrees
      to
      use its commercially reasonable and good faith efforts to promptly make any
      required repairs. 

    

    (b)    In
      order
      to enable the Equipment to be maintained and promptly repaired, NutraCea agrees
      to [*],
      or, at
      Joint Entity’s election, to train one or more of Joint Entity’s employees in the
      proper maintenance and repair of the Equipment. The cost of the foregoing
      maintenance employees shall be borne by the Joint Entity. 

    

    (c)    Joint
      Entity agrees to provide NutraCea’s employees with reasonable access to the
      Equipment during all business hours and will provide any other
      assistance reasonably required by NutraCea to provide such maintenance and
      repair services. Joint
      Entity further
      agrees to use its best efforts to ensure that the
      Equipment will not be accessible by any persons not specifically authorized
      by
      Nutracea without the express prior consent of NutraCea. 

    

    (d)    NutraCea
      or its agents may, from time to time, make reasonable modifications and/or
      improvements to the Equipment in order to improve the efficiency or
      cost-effectiveness of cleaning, sanitizing, operating, maintaining or repairing
      the Equipment. NutraCea, or at its sole election, Joint Entity, will provide
      the
personnel
      to properly clean and operate the Equipment. 

    

    (e)    In
      order
      to enable the Equipment and Rice Mill to be maintained and repaired, Joint
      Entity shall keep all such spare parts as Nutracea reasonably requests at a
      secure place at the Location. In addition, Joint Entity shall promptly replace
      all spare parts that are used for repairs.

    

    (f)    
NutraCea
      agrees that it will provide all of the foregoing services at a price to Joint
      Entity equal to [*].
      In
      addition, all spare parts necessary to repair or maintain the Equipment shall
      be
      purchased or produced by NutraCea; Joint Entity will be billed for all such
      spare parts at [*],
      if
      applicable.

    

    7.    No
      Use
      of other Stabilization Equipment or Technologies.
      As of
      the date of the installation of the Equipment, Joint Entity agrees not to use
      any other rice bran stabilization technologies or equipment other than the
      Equipment. Joint Entity agrees from and after such date that all Joint Entity
      stabilized rice bran produced at the Location by Joint Entity shall be produced
      with the Equipment.

    

    8.    Taxes.
      Joint
      Entity shall pay any taxes, assessments, fees, and charges arising or related
      to
      the presence, use, or operation of the Equipment at the Location, whether
      assessed against NutraCea or Joint Entity, during the term of this
      Lease.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.    Possession.     Joint
      Entity
      assumes full responsibility for the safekeeping of the Equipment and access
      to
      the Equipment during the term. Joint Entity shall not misuse, sublet, transfer,
      or otherwise dispose of the Equipment or any portion thereof.

    

    10.         
      [*]

    

    11.  
         Indemnity
      and Insurance.

    

    11.1.         Indemnity.
      Joint
      Entity shall defend, indemnify and save NutraCea harmless from any and all
      claims brought by or on behalf of any third party relating to Joint Entity’s use
      of the Equipment, including but not limited to strict products liability,
      negligent acts or omissions of Joint Entity or any of its agents.
      Notwithstanding the foregoing, Joint Entity will not be required to indemnify
      and hold NutraCea harmless for any claims made against NutraCea relating to
      the
      ownership of the Equipment, claims alleging infringement of the Equipment on
      such third party’s rights, or claims arising primarily from any improper acts by
      NutraCea or its agents. NutraCea shall indemnify and save Joint Entity harmless
      from any and all third party claims made against Joint Entity alleging
      infringement of the Equipment on such third party’s rights, except to the extent
      arising primarily from any improper acts by Joint Entity.

    

    11.2.         Insurance.
      Joint
      Entity shall keep the Equipment and Joint Entity’s operations insured as
      reasonably appropriate by a responsible insurance company or companies
      authorized to do business in the Location. If Joint Entity shall fail to procure
      and maintain such insurance, NutraCea may, but shall not be required to, procure
      and maintain the same at Joint Entity’s expense. 

    

    12. Confidentiality.

     

    12.1.        
      Definition.
      “Confidential
      Information”
means
      any information or compilation of information which is disclosed by one party
      hereto (“Disclosing
      Party”)
      to
      another party (“Receiving
      Party”)
      hereunder, which is proprietary to the Disclosing Party and which relates to
      technical specifications of the Equipment, the design, functionality and
      operations of the Equipment, trade secrets and information contained in or
      relating to product designs, manufacturing methods, processes, techniques,
      tooling, and maintenance procedures. Information shall be treated as
      Confidential Information irrespective of its source and all information which
      the Disclosing Party identifies as being “confidential” or “trade secret” shall
      be presumed to be Confidential Information. Notwithstanding the above, the
      term
      Confidential Information shall not include information:

    

    (a)    which
      was
      in the public domain at the time of disclosure by the Disclosing Party to the
      Receiving Party;

    

    (b)    which
      is
      published or otherwise comes into the public domain after its disclosure to
      the
      Receiving Party through no violation of this Lease, by the Receiving
      Party;

    

    (c)    which
      is
      disclosed to the Receiving Party by a third party not under an obligation of
      confidence;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)    which
      is
      already known by the Receiving Party at the time of its disclosure to the
      Receiving Party by the Disclosing Party as evidenced by written documentation
      of
      the Receiving Party existing prior to such disclosure;

    

    (e)    which
      is
      independently developed by the Receiving Party through persons who have not
      had,
      either directly or indirectly, access to or knowledge of the Confidential
      Information of the Disclosing Party, as evidenced by written documentation
      of
      the Receiving Party; or

    

    (f)    
which
      is
      required to be disclosed by any law or governmental regulation or produced
      under
      order of a court of competent jurisdiction; provided, however, that the
      Receiving Party provide the Disclosing Party written notice of such request
      or
      order and Disclosing Party is provided with an opportunity to attempt to limit
      such disclosure.

    

    12.2.        
      Nondisclosure.
      During
      the term of this Lease and at all times thereafter, the Receiving Party agrees
      to hold in strictest confidence and to never disclose, furnish, communicate,
      make accessible to any person or use in any way for the Receiving Party’s own or
      another’s benefit any Confidential Information or permit the same to be used in
      competition with the Disclosing Party. The Receiving Party agrees to use prudent
      and reasonable means to protect the Confidential Information. 

     

    12.3.        
      Injunctive
      Relief.
      In the
      event of any breach of this Section 8, the parties agree that the non-breaching
      party will suffer irreparable harm for which money damages would be an
      inadequate remedy. Accordingly, the non-breaching party shall be entitled to
      seek injunctive relief, in addition to any other available remedies at law
      or in
      equity.

    

    13.         
      Default;
      Effect of Termination.
      

    

    13.1         
      Default.
      Upon an
      Event of Default, this Lease shall terminate and all rights of Joint Entity
      to
      the Equipment shall immediately terminate. Upon an Event Default NutraCea shall
      be entitled to all remedies provided by law including the right to take
      possession of the Equipment, to retain all Rent previously paid, and to convey
      or lease the Equipment or portions thereof for such periods, at such rentals,
      and to such persons as NutraCea shall elect, and to recover from Joint Entity
      all damages and other recovery permitted under applicable law. An “Event
      of Default”
shall
      mean, and be limited to, any of the following events: 

    

    (a)    The
      failure of Joint Entity to pay the Rent; 

    

    (b)    A
      default
      by Joint Entity in the performance of any of the material terms and conditions
      of this Lease that either is not capable
      of being cured or is not cured within 20 days after notice thereof is provided
      in writing to Joint Entity, and if such a default either materially and
      adversely affects NutraCea’s (x) legal title to the Equipment, (y) proprietary
      rights or intellectual property rights, or (z) ability to repossess the
      Equipment upon the expiration of this Lease. Except as set forth above, any
      other breach of this Lease shall not result in the return of the Equipment
      to
      NutraCea or the termination of this Lease, and shall only entitle NutraCea
      to
      seek monetary damages or injunctive relief.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.2.        
      Effect
      of Termination. Upon
      expiration of the [*]
      Lease
      term or the termination of this Lease following and Event of Default, Joint
      Entity will return to NutraCea, and/or will provide evidence satisfactory to
      NutraCea of the destruction of all information or records evidencing or
      embodying any confidential information or intellectual proprietary rights of
      NutraCea, or with respect to the Equipment, and all copies, extracts, summaries
      and abstracts thereof, and thereafter will not use or disclose any such
      information or records for its own benefit or to the detriment of
      NutraCea.

    

    13.3.       
      Removal
      of Equipment. Upon
      expiration of the [*]
      Lease
      term or the termination of this Lease following and Event of Default, NutraCea
      may, at its own expense, remove the Equipment from the Location, and shall
      repair any material damage to such premises as a result of such removal.

    

    13.4.         Survival
      of Covenants. The
      obligations of the parties under Sections 8, 9, 11, 12 and 13 shall survive
      any
      expiration or termination of the Lease.

    

    14.    Dissolution
      of Joint Entity; Right of First Refusal.
      

    

    14.1  
        Buy
      Out Right.
      In the
      event that Joint Entity elects to dissolve and wind up its operations, Joint
      Entity shall provide NutraCea with written notification of such election within
      10 days of such election. During the 45 day period following NutraCea’s receipt
      of such written notice, NutraCea shall have the right to buy out Joint Entity’s
      rights under this Lease for an amount equal (the “Buy-Out
      Price”)
      to
[*].
      If
      NutraCea elects to buy out the Lease hereunder, NutraCea shall provide Joint
      Entity with a binding written notice of such election, which written notice
      shall also state NutraCea’s estimate of the Buy-Out Price. Joint Entity shall
      notify NutraCea within 15 days of its receipt of NutraCea’s estimate of the
      foregoing election whether it agrees with the Buy-Out Price. If Joint Entity
      does not agree with the Buy-Out Price, the Buy-Out Price shall be determined
      by
      an independent appraiser located in the United States and having an established
      reputation and selected by the mutual written consent of NutraCea and Joint
      Entity, which determination will be binding upon the parties absent fraud.
      The
      parties shall, within 15 days after the determination of Buy-Out Price
      consummate the termination of the Lease and the payment of the Buy-Out Price.
      

    

    14.2  
        Failure
      to Buy.
      If
      NutraCea does not elect to buy out the Lease under Section 14.1, notwithstanding
      anything in this Lease to the contrary, upon Joint Entity’s election to dissolve
      and wind up its operations, [*].

    

    15.    Miscellaneous.

    

    15.1. 
         Assignment.
      Subject
      to the limitations set forth in Section 14, this Lease may be assigned only
      with
      the prior written consent of NutraCea. 

     

    15.2. 
         Notices.
      All
      notices required hereunder shall be sent by certified mail return receipt
      requested, express courier with a nationally recognized courier service or
      by
      telex confirmed by such certified mail, to the party to be notified at its
      following address or at such other address as shall have been specified in
      written notice from the party to be notified.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

        If
          to
          NutraCea:

      

    

    

     NutraCea
      

     5090
      North 40th
      Street,
      Suite 400

     Phoenix,
      AZ 85018

     Attn:
      Brad Edson

    

    With
      a
      copy to:

    

     Weintraub
      Genshlea Chediak Law Corporation

     400
      Capitol Mall, Suite 1100

     Sacramento,
      CA 95818

     Attn:
      Chris Chediak

    

    If
      to
      Joint Entity:

    

     Grain
      Enhancement, LLC

     5090
      North 40th
      Street,
      Suite 400

     Phoenix,
      AZ 85018

     Attn:
      Financial Committee

     

    15.3.       
      Entire
      Agreement.
      The
      foregoing (including the exhibits referenced herein) is the parties’ entire
      agreement, superseding all prior oral or written agreements and understandings
      with respect to the subject matter hereof. The terms set forth herein shall
      be
      severable and the failure of any distinct part will not void the
      remainder.

    

    15.4.        
      Modification
      and Amendment.
      This
      Lease may be modified or amended only in writing and signed by both parties.
      

    

    15.5.        
      Survival.
      The
      provisions of this Lease that by their terms or context are intended to survive
      termination of this Lease, shall so survive the termination of this
      Lease.

    

    15.6.        
      Governing
      Law.
      The
      parties agree that this Lease shall be governed by the laws of the State of
      California. Joint Entity and NutraCea expressly agree that any action at law
      or
      in equity arising under this Lease shall be filed only in the Courts of the
      State of California in a county of competent jurisdiction or the United States
      District Court in a California district of competent jurisdiction. The parties
      hereby consent and submit to the personal jurisdiction of such courts for the
      purposes of litigating any such action.

    

    15.7.        
      Recovery
      of Legal Fees and Costs.
      In the
      event any litigation is brought by either party in connection with this Lease,
      the prevailing party in such litigation shall be entitled to recover from the
      other party all the costs, attorneys' fees and other expenses incurred by such
      prevailing party in the litigation.

    

    15.8.        
      Counterparts.
      This
      Lease may be signed in one or more counterparts, each of which shall be deemed
      an original, but all of which together shall constitute one and the same
      Lease.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    15.9.        
      Binding
      Agreement.
      This
      Lease shall be binding upon and inure to the benefit of each of the parties
      hereto, and their respective legal successors and assigns. 

    

    15.10.      
      Waiver.
      Performance of any obligation required of a party hereunder may be waived only
      by a written waiver signed by the other party, which waiver shall be effective
      only with respect to the specific obligation described therein. The acceptance
      of rent hereunder by NutraCea shall not be a waiver of any preceding breach
      by
      the Joint Entity that is not fully cured thereby. 

    

    15.11.     
      Severability.
      If one
      or more provisions of this Lease are held to be unenforceable under applicable
      law, such provision shall be excluded from this Lease and the balance of the
      Lease shall be interpreted as if such provision were so excluded and shall
      be
      enforceable in accordance with its terms.

     

    15.12.     
      Publicity.
      Neither
      party shall the terms of this Lease or make any public announcement regarding
      this Lease or the subject matter contained herein without the prior written
      consent of the other party, except as may be required by applicable law, in
      which event, the disclosing party shall endeavor to give the non-disclosing
      party prompt notice in order to allow the non-disclosing party the opportunity
      to seek a protective order.
      Notwithstanding
      any of the foregoing to the contrary, the terms and conditions of this Lease
      may
      be disclosed by a party to bona fide potential investors, acquirors or partners
      of such party in the course of such person’s due diligence investigation of such
      party, where such person has entered into a written non-disclosure agreement
      with such party that includes terms no less restrictive than those included
      herein.

     

    15.13.      
      No
      Joint Venture or Partnership; No Reference to Agreement or
      Relationship.
      Nothing
      in this Lease shall be construed to create a partnership or joint venture of
      any
      kind or for any purpose between the parties hereto, or to constitute either
      party a special or general agent of the other, and neither party will act or
      represent otherwise to any third party. Neither party shall refer to this Lease,
      to the other party or the relationship between the parties in any communication
      with any third party without the prior written consent of the other
      party.

    

    15.14.    
      Disclaimer
      of Warranties.
      NOTWITHSTANDING
      ANYTHING CONTAINED IN THIS LEASE, 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 FOR A
      PARTICULAR PURPOSE), WITH RESPECT TO ANY ITEMS OR EQUIPMENT LEASED UNDER THIS
      LEASE,
      EXCEPT
      AS EXPRESSLY PROVIDED HEREIN.

    

    15.15.      
      Limitation
      of Liability.
      Notwithstanding anything contained in this Lease, neither party shall be liable
      to the other, whether in tort, in contract or otherwise, and whether directly
      or
      by way of indemnification, contribution or otherwise, for any incidental,
      consequential, punitive or exemplary damages, (including without limitation
      lost
      profits or revenues or injury to business or business reputation), whether
      of
      the other party or of any third party, relating to or arising out of the subject
      matter of this Lease.

     

    [SIGNATURE
      PAGE TO FOLLW]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    The
      authorized representatives of the parties have executed this Lease as of the
      Effective Date.

    

    
      	
              NutraCea:

            	 	 	
              ________________________:

            
	 	 	 	 	 
	
              By:
                

            	
              ______________________________

            	 	
              By:
                

            	_______________________________
	
            	
            	 	 	 
	 	 	 	 	 
	
              Title:

            	______________________________ 	 	
              Title:
                

            	_______________________________
	 	 	 	 	 

    

    

    [SIGNATURE
      PAGE TO EQUIPMENT LEASE]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
      A

    

    Equipment
      Description

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    Facilities

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]