Document:

EXHIBIT 10.5

                              EMPLOYMENT AGREEMENT

This Employment Agreement ("Agreement") is entered into by and between NutraCea,
a  California corporation with principal address at 1261 Hawk's Flight Court, El
Dorado  Hills,  CA 95762 ("NutraCea") and Margie Adelman, an individual residing
at  4033 Bancroft Drive, El Dorado Hills California 95762 ("Employee") effective
as  of  January  25,  2005  ("Effective  Date"),  as  follows:

1.     Employment  NutraCea  wishes  to  employ  Employee and Employee agrees to
       ----------
provide  services  for  NutraCea  on  the  terms and conditions set forth below.

2.     Employment;  Scope  of  Employment. Employee shall act as the Senior Vice
       -----------------------------------
President of NutraCea The duties of Employee shall include but not be limited to
new  business  development,  Investor  Relations  and  Public  Relations for the
Company.  NutraCea  reserves  the  exclusive  right  to  modify  and  designate
Employee's  specific  duties  from  time  to  time in any manner consistent with
Employee's  status  as  Senior  Vice  President.  In  the  event  of a merger or
acquisition  of  substantially  all  of  the  assets  of  NutraCea,  a change of
Employee's title or supervisor shall not be deemed a material alteration to this
Agreement.

          2.1     Best  Efforts:  Full  Working  Time.      Employee  agrees  to
                  ------------------------------------
devote  her  best efforts, attention, skill and experience to the performance of
Employee's  duties  all  in  accordance  with  the provisions of this Agreement.
Employee  shall apply her entire full working time to performing these services.

          2.2     Supervision  and  Direction  of  Services.  All  of Employee's
                  ------------------------------------------
services  shall  be  under  the supervision and direction of the Chief Executive
Officer  and  President  of  NutraCea  and  the  Board of Directors of NutraCea.

          2.3     Rules.  Employee shall be bound by all the policies, rules and
                  ------
regulations  of  NutraCea now in force and by all such other policies, rules and
regulations in the normal course of business as may be hereafter implemented and
shall  faithfully  observe  and  abide  by  the  same.

          2.4     Exclusive  Services. During the term of this Agreement and any
                  --------------------
extension of this Agreement, Employee shall not, directly or indirectly, whether
as  a  partner,  employee,  creditor, five percent (5%) shareholder, independent
contractor or otherwise, promote, participate or engage in any activity or other
business  which  NutraCea  deems  in  its  sole  reasonable  discretion  to  be
competitive  in  any  way with NutraCea's current or future business operations.
Employee  agrees  that  Employee shall not enter into an agreement to establish,
form, contract with or become employed by a competing business of NutraCea while
Employee  is  employed  by  NutraCea.

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     2.5     Non-Solicitarion/Non-Compete.
             -----------------------------

               2.5.1     Non-Solicitation.  To  the  fullest  extent permissible
                         -----------------
under  applicable  law,  Employee  agrees  that  both  during  the  term of this
Agreement  and  for  a  period  of  two  (2) years following termination of this
Agreement, Employee shall not take any action to induce employees or independent
contractors  of NutraCea to sever their relationship with NutraCea and accept an
employment  or  an  independent contractor relationship with any other business.

               2.5.2     Non-Compete.  To  the  fullest extent permissible under
                         ------------
applicable  law,  Employee  agrees  to  refrain  from,  unless  first  obtaining
NutraCea's  prior  written  consent,  directly or indirectly, engaging in, being
employed  by,  being  associated  with,  being  under  contract  with,  owning,
managing,  operating,  joining,   controlling,  or  participating  in  the
ownership,  management,  operation, or control of, being connected in any manner
with,  or  having  any  interest  in,  any  business, firm, sole proprietorship,
partnership  or  corporation  that engages in substantially the same business as
NutraCea in the United States for a period of two (2) years after termination of
this  Agreement.

               2.5.3     Separate  Covenants.  Employee  acknowledges  that  the
                         --------------------
nature and periods of restrictions imposed by the covenants contained herein are
fair,  reasonable, and that the Company would sustain great and irreparable loss
and  damage  if  Employee  in  any  manner were to breach any of such covenants.
Accordingly,  in the event of an actual or threatened breach of the covenants by
Employee,  in  addition  to all other remedies which NutraCea may have, NutraCea
shall  be  entitled to enforce the specific performance of this Agreement and to
seek  both  immediate,  temporary and permanent injunctive relief (to the extent
permitted by law) restraining such actual or threatened breach . Employee waives
any requirement that NutraCea post any bond or other security in order to obtain
such  injunctive  relief.   It  is  understood by and between the parties hereto
that the covenants contained in this Agreement shall be deemed to be a series of
separate  covenants,  one for each line of business engaged in by NutraCea. Each
separate  covenant  shall  hereinafter be referred to as "separate covenant." If
any  court  or tribunal of competent jurisdiction shall refuse to enforce one or
more  of  the  separate  covenants  because the time limit applicable thereto is
deemed  unreasonable,  it  is expressly understood and agreed that such separate
covenant  or  separate  covenants  shall not be void but that for the purpose of
such  proceedings  and such time limitation shall be deemed to be reduced to the
extent necessary to permit the enforcement of such separate covenant or separate
covenants.  If  any  court or tribunal of competent jurisdiction shall refuse to
enforce  any  or all of the separate covenants because, taken together, they are
more  extensive  (whether as to geographic area, scope of business or otherwise)
than  is  deemed to be reasonable, it is expressly understood and agreed between
the  parties  hereto that such separate covenant or separate covenants shall not
be  void  but  that  for  the  purposes  of  such  proceedings, the restrictions
contained  therein  (whether  as  to  geographic  area,  scope  of  business  or
otherwise)  shall  be deemed to be reduced to the extent necessary to permit the
enforcement  of  such  separate  covenant  or  separate  covenants.

          2.6     Office  Location.  Employee shall primarily perform her duties
                  -----------------
under  this Agreement at NutraCea's offices in the Sacramento metropolitan area.

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3.     Term  and  Termination:  Payments  upon  Termination.
       -----------------------------------------------------

     3.1     Term  and Termination.  Unless  earlier  terminated  for  Cause (as
             ----------------------
defined  below),  NutraCea  hereby  employs the Employee for a period commencing
upon  the Effective Date and ending three (3) years from the Effective Date (the
"Term").

          3.1.1     Termination  for Cause. For purposes of this section "Cause"
                    -----------------------
shall  be  defined  as  the  following:

                    a.   NutraCea  may  immediately  terminate  Employee's
                         employment  pursuant to the terms of this Agreement for
                         the  following  reasons by giving written notice of the
                         termination to Employee:

                         i.   Employee,  in  the  reasonable  determination  of
                              the  Board of Directors of NutraCea, has found the
                              Employee  to  be  grossly  negligent or engaged in
                              material  willful  or  gross  misconduct  in  the
                              performance  of  her duties; and only if the Board
                              has filed a civil lawsuit for the same claim, or

                         ii.  Employee  has  been  convicted  by  a court of law
                              of fraud, moral turpitude, embezzlement, theft, or
                              dishonesty or other criminal conduct; or

                         iii. Employee  has  taken  other  actions  or  omitted
                              to  take  any  actions  such  that  such action or
                              omissions  constitute  legal cause for termination
                              under California law, as then in effect,

                    b.   NutraCea  may  terminate  Employee's  employment
                         pursuant to the terms of this Agreement upon Employee's
                         failure  to cure the deficiency within ten (10) days of
                         receipt  of  written  notice  from  NutraCea  for  the
                         following reasons:

                         i.   Employee  has  materially  breached  the  terms
                              hereof; or

                         ii.  Employee  has  failed  to  meet  written standards
                              established  by  NutraCea  for  the performance of
                              duties hereunder;

     3.2     Payments  Upon  Termination.
             ----------------------------

          3.2.1      For Cause. Following any termination by NutraCea for Cause.
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Employee  shall  be  entitled  to receive in cash payment an amount equal to all
previously  accrued but unpaid or unused compensation, including but not limited
to. salary, vacation pay and Employee may retain the vested portion of any stock
and  warrants properly and duly granted to Employee as of such date, subject and
pursuant  to  the  terms  of  the

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warrant  agreements  or  stock purchase agreements entered into between NutraCea
and  Employee;

          3.2.2     Without Cause. Following any termination by NutraCea without
                    --------------
Cause,  Employee  (or  Employee's  estate)  shall be entitled to receive in cash
payment  an  amount  equal  to  all  previously  accrued  but  unpaid  or unused
compensation,  including  but  not limited to, salary, bonus, vacation pay and a
lump sum payment equal to twelve (12) months of Employee's salary at the time of
termination.  Subject  to  the terms and conditions of any warrant agreements or
stock  purchase  agreements, Employee may retain the vested portion of any stock
and warrants properly and duly granted to Employee as of such date. All warrants
will vest pursuant to the terms of this Agreement between NutraCea and Employee.
All  warrants will vest and remain exercisable for period of ten (10) years from
the  effective  date  of  this  Agreement.

          3.2.3     Death  or  Disability.  Upon  the death or disability of the
                    ----------------------
Employee,  the  Employee  shall be entitled to and NutraCea will pay Employee or
Employee's estate any accrued but unpaid amounts due to Employee under the terms
of  this Agreement through the date of death or disability (For purposes of this
Section,  "disability"  shall  mean that for a period of three (3) months in any
12-month period the Employee is incapable of substantially fulfilling her duties
because  of  physical,  mental  or emotional incapacity from injury, sickness or
disease.  In  the  event of Employee's disability, Employee shall be entitled to
receive  a  lump sum severance payment equal to twelve (12) months of Employee's
salary,  reduced only by disability payments received by Employee from long term
disability insurance maintained by NutraCea. In addition, should the Employee be
rendered  disabled,  NutraCea  will  continue to maintain for the benefit of the
Employee  for a period of six (6) months from the date of the termination due to
disability,  all benefit programs referred to in Section 4.3 that were in effect
on  the  date  of  the  disability.

Employee's  Initials    MA                           NutraCea's  Initials
                      ------                                              ------

4.     Compensation:  Benefits.
       ------------------------

     4.1     Salary.  Employee  shall  be  paid  at a rate, which if annualized,
             -------
equals  one hundred fifty thousand dollars ($150.000) per year subject to normal
payroll  withholdings  and  NutraCea's  standard  payroll practices. On a yearly
basis,  at  "NutraCea's sole discretion, Employee's salary shall be re-evaluated
pursuant  to  market  conditions  and  NutraCea's  business  condition.

     4.2      Warrants. NutraCea shall grant to Employee warrants to purchase up
              ---------
to  one  million  (1.000,000)  shares of NutraCea's common stock pursuant to the
terms  and  conditions  of  a  Warrant Agreement, in the form attached hereto as
Exhibit  A-l  ("Warrant  Agreement").  Such warrants shall vest according to the
terms  of  the  Warrant  Agreement and the warrants may be exercised by cashless
exercise  pursuant  to  the  terms  and conditions of the Warrant Agreement. The
Exercise  Price  (as  defined in the Warrant Agreement) shall be equal to thirty
cents  ($.30)  per  share.  Subject  to  the  terms  of  the

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Warrant  Agreements,  all warrants shall be exercisable for a period of ten (10)
years  from  the  Effective  Date.

In  addition,  Employee  shall be granted warrants to purchase up to one million
(1,000,000)  shares  of  NutraCea's  common  stock  pursuant  to  the  terms and
conditions of a Warrant Agreement, attached hereto as Exhibit A-2 at an exercise
price  of  thirty  cents  ($.30) per share. These warrants shall fully vest upon
NutraCea  reporting  annual  gross  sales  of  Twenty  Five  Million  Dollars
($25,000,000) or more and the Company reports a positive EBITDA. For purposes of
the  foregoing,  the  calculation  of  EBITDA shall not include noncash charges.

In  addition  to  standard  provisions,  each  warrant agreement shall contain a
lock-up provision prohibiting Employee from selling the common stock obtained by
Employee  upon  exercise  of the warrants for a period of Thirty Six (36) Months
from  the  Effective  Date  of  this  Agreement or while Employee is employed by
NutraCea,  unless  the  express  written  consent  of  NutraCea  is  obtained.

     4.3     Vacation  and  other Standard Benefits. Employee shall initially be
             ---------------------------------------
entitled to three (3) weeks of paid vacation time per year for the first two (2)
years of Employee's employment and four (4) weeks of paid vacation time per year
thereafter.  Employee  may  not  accrue vacation time in excess of such four (4)
week  maximum.  Accrual  of  vacation  time  shall  be  subject to the terms and
conditions  of  NutraCea's  vacation  policy.  Employee and Employee's immediate
family  shall  be  entitled  to  health  benefits  in accordance with NutraCea's
standard  policies.  In  addition,  Employee shall be entitled to paid holidays,
sick  leave  and other benefits in accordance with NutraCea's standard policies.
Employee  shall be reimbursed for reasonable business expenses, subject to prior
approval  by  NutraCea  in  accordance  with  NutraCea's  standard  policies for
employees  and   conditioned   upon   Employee's   prior  presentation  to
NutraCea's   accounting  department  of  appropriate  receipts  or  such  other
verification  of  expenses  as  NutraCea  may require from time to time. Any air
travel  that  is  business-related domestically will be booked at economy class,
but  can  be upgraded to a higher class at Employee's option and Employee's sole
expense.  Any  international  travel  will  be  booked  in business class, hotel
accommodations  will  be  booked  in  reasonable  accommodations,  as  deemed
appropriate  in  the  sole discretion of NutraCea   In the event of a forward or
reverse  stock  split  all  warrants  granted  to  employee  will  be  adjusted
accordingly  to  reflect  equal  share value of warrants. Employee shall also be
entitled  to  participate  in  NutraCea's  401(k)  program.

     4.4     Bonuses.  Employee  shall  be  entitled  to  a one-time Twenty Five
             --------
Thousand Dollar ($25,000) bonus upon the signing of this Agreement. Employee may
receive  additional  bonuses  at  the sole discretion of the CEO or President of
NutraCea and any such bonus shall be subject to approval and ratification by the
Compensation  Committee  of  the  Board  of  Directors  of  NutraCea.

     4.5.      Administrative Assistant. NutraCea agrees to employ one full time
               -------------------------
administrative  assistant  as  required  and determined by the Company to assist
Employee  for  business  purposes  only.

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5.     Employment  Information.    Employee  represents and warrants to NutraCea
       ------------------------
that  information  provided by Employee in connection with Employee's employment
and  any  supplemental  information  provided  to NutraCea is complete, true and
materially  correct  in all respects.   Employee has not omitted any information
that  is  or  may  reasonably  be considered necessary or useful to evaluate the
information provided by Employee to NutraCea.  Employee shall immediately notify
NutraCea  in  writing  of any change in the accuracy or completeness of all such
information.

6.     Trade  Secrets  and  Confidential Information.      Employee acknowledges
       ----------------------------------------------
that  NutraCea  has  gone  to great time and expense to develop customers and to
develop  procedures  and  processes for development of products and services and
the  sales  of products and services.  Such procedures and processes in addition
to  various  other  types of proprietary information are included as part of the
"confidential  information" described in the "Proprietary Information Agreement"
attached  hereto  as Exhibit B. Employee has previously executed the Proprietary
Information  Agreement  or  agrees to execute NutraCea's Proprietary Information
Agreement contemporaneously with the execution of this Agreement and employment.
Employee  further  agrees  to  execute,  deliver and perform, during the Term of
Employee's  employment  with Employer and thereafter,   any   other   reasonable
confidentiality   and   non-disclosure   agreements  concerning Employer and any
of  its affiliates and its business and products, which Employer promulgates for
other  key  employees  and  executives.

7.     Remedies  for Breach of Covenant Regarding Confidentiality.   The parties
       -----------------------------------------------------------
agree  that  the  breach by Employee of any covenants contained in Sections 2.4,
2.5,  5  and  6 will result in immediate and irreparable injury to NutraCea.  In
the  event of any breach by Employee of the covenants contained in Sections 2.4,
2.5,  5  or 6, NutraCea shall be entitled to seek recourse through all available
legal  and  equitable  remedies necessary or useful to prevent any likelihood of
immediate  or  irreparable  injury  to NutraCea.  The parties agree that, in the
case  of  such a breach or threat of breach by Employee of any of the provisions
of  such  Sections,  NutraCea  may  take any appropriate legal action, including
without  limitation  action  for  injunctive  relief,  consisting  of  orders
temporarily  restraining and preliminarily and permanently enjoining such actual
or  threatened  breach.

8.     Miscellaneous.
       --------------

     8.1     Choice  of  Law, Jurisdiction, Venue. The rights and obligations of
             -------------------------------------
the  parties  and  the interpretation and performance of this Agreement shall be
governed  by  the  laws of California, excluding its conflict of laws rules. The
exclusive  jurisdiction  and  venue  of any legal action brought by either party
under  this  Agreement  shall  be  in  the  County  of  Sacramento,  California.

     8.2.     Entire  Agreement.     This   Agreement,   the  Proprietary
              ------------------
Information  Agreement  dated  January  25,  2005 described in Section 6 and the
Warrant  Agreements referenced in Section 4.2 contain the entire Agreement among
the  parties  and  supersede  all  prior  and  contemporaneous  oral and written
agreements,  understandings  and

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representations  among  the  parties,  including  without  limitation  any offer
letter.  There  are  no  representations,  agreements,  arrangements,  or
understandings,  whether  oral or written, between or among the parties relating
to  the subject matter of this Agreement that are not fully expressed herein and
therein.

     8.3     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  above or at the most recent address specified by the
addressee through written notice under this provision. Failure to conform to the
requirement  mat  mailings  be  done  by  registered or certified mail shall not
defeat  the  effectiveness  of  notice  actually  received  by  the  addressee.

     8.4     Severability.      NutraCea  and  Employee  agree  that  should any
             -------------
provision  of  this  Agreement  be  declared  or  be  determined by any court of
competent  jurisdiction  to  be illegal, invalid or unenforceable, the legality,
validity  and  enforceability of the remaining parts, terms and provisions shall
not  be  affected thereby, and said illegal, unenforceable or invalid part, term
or  provision  shall  be  deemed  not  to  be  part  of  this  Agreement

     8.5     Legal Fees.     Each party will bear its own legal fees relating to
             -----------
the  negotiation  of  this  Agreement  and  related  documents.

     8.6     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 party against whom enforcement of the modification or discharge is
sought.

     8.7     No  Transfer  or  Assignment;  No  Third-Party  Beneficiaries.  The
             --------------------------------------------------------------
rights  of  Employee  hereunder  have  been  granted  by  NutraCea  with  the
understanding  that  this  Agreement  is  personal to, and shall be performed by
Employee  individually.  This  Agreement  is  not  transferable or assignable by
Employee  in  any  manner.  No person or entity other than NutraCea and Employee
shall  have  any  rights  whatsoever under this Agreement.   No person or entity
other than NutraCea or Employee shall have any right to enforce any provision of
this  Agreement,  or  to  recover  damages  on  account  of  the  breach of this
Agreement.  No  heir, successor or assign of Employee, whether voluntarily or by
operation  of  law,  shall  have or succeed to any rights of Employee hereunder.
NutraCea  may  assign  this  Agreement  in the event of a merger or acquisition.

     8.8     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

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

     8.9      Resolution  of  Disputes.
              -------------------------

          8.9.1     Resolution  of  Disputes.  NutraCea  and Employee agree that
                    -------------------------
any  claim  or controversy arising out of or pertaining to this Agreement or the
termination  of  Employee's  employment, including but not limited to, claims of
wrongful  treatment  or  termination  allegedly  resulting  from discrimination,
harassment  or  retaliation  on  the  basis  of race, sex, age, national origin,
ancestry,  colon  religion,  marital  status, status as a veteran of the Vietnam
era,  physical  or  mental  disability,  medical  condition,  or any other basis
prohibited  by  law  ("Dispute")  shall  be  resolved  by binding arbitration as
provided  in  this  paragraph.  The  parties  agree that no party shall have the
right  to  sue  any  other  party regarding a Dispute except as provided in this
paragraph.

          8.9.2     Binding  Arbitration.  Any Dispute between the parties shall
                    ---------------------
be  submitted  to,  and  conclusively  determined  by,  binding  arbitration  in
accordance  with  this  paragraph.   The  provisions of this paragraph shall not
preclude  any  party  from  seeking injunctive or other provisional or equitable
relief  in order to preserve the status quo of the parties pending resolution of
the Dispute, and the filing of an action seeking injunctive or other provisional
relief  shall  not  be construed as a waiver of that party's arbitration rights.
The  arbitration  of  any Dispute between the parties to this Agreement shall be
governed  by  the provisions of the California Arbitration Act. (California Code
of  Civil Procedure section 1280, et seq., including the provision of California
Code  of  Civil  Procedure  section  1283.05.)

          8.9.3     Appointment  of  Arbitrator.  The  arbitrator  shall  be  a
                    ----------------------------
neutral  arbitrator mutually selected by NutraCea and Employee from the American
Arbitration  Association  and  will be governed by the rules of the Association.
Within  thirty  (30) days of service of a demand for arbitration by either party
to  this  Agreement, the parties shall endeavor in good faith to select a single
arbitrator.  If  they  fail  to  do so within that time period, each party shall
have an additional period of fifteen (15) days in which to appoint an arbitrator
and  those  arbitrators  within  fifteen  (15)  days  shall select an additional
arbitrator.  If  any  party fails to appoint an arbitrator or if the arbitrators
initially  selected  by  the  parties  fail  to appoint an additional arbitrator
within  the  time  specified  herein,  any party may apply to have an arbitrator
appointed  for  the  party  who has failed to appoint, or to have the additional
arbitrator  appointed, by the presiding judge for the Superior Court, Sacramento
County,  California.   If  the  presiding  judge,  acting in his or her personal
capacity,  is  unable  or  unwilling  to appoint the additional arbitrator, that
arbitrator  shall  be  selected  in  accordance  with  California  Code of Civil
Procedure  section  1281.6.

          8.9.4     Initiation  of  Arbitration.  In  the  case  of  any Dispute
                    ----------------------------
between  the  parties  to  this  Agreement, either party shall have the right to
initiate  the  binding  arbitration  process  provided  for in this paragraph by
serving  upon  the  other  party  a

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demand  for  arbitration  within  the  statutory  time  period from the date the
Dispute  first  arose,

          8.9.5     Location  of  Arbitration.  Any arbitration hearing shall be
                    --------------------------
conducted  in  Sacramento  County.  California.

          8.9.6     Applicable  Law.  The  law  applicable to the arbitration of
                    ----------------
any Dispute shall be the law of the State of California, excluding its conflicts
of  law  rules.

          8.9.7     Arbitration  Procedures.  Except  as  otherwise  provided in
                    ------------------------
this  paragraph, the arbitration shall be governed by the California Arbitration
Act  (Code Civ. Proc.,   1280 et seq.), The parties shall be entitled to conduct
discovery sufficient to adequately arbitrate their claims or defenses, including
access to essential documents and witnesses, as determined by the arbitrator and
subject  to  limited judicial review.   In addition, either party may choose, at
that party's discretion, to request that the arbitrators resolve any dispositive
motions  prior to the taking of evidence on the merits of the Dispute. By way of
example,  such  dispositive  motions would include, but not be limited to, those
which  would  entitle  a  party  to  summary judgment or summary adjudication of
issues  pursuant  to  Code  of  Civil  Procedure section 437c or resolution of a
special defense as provided for at Code of Civil Procedure section 597.   In the
event  a  party  to  the  arbitration  requests  that  the arbitrators resolve a
dispositive  motion,  the  arbitrators shall receive and consider any written or
oral  arguments regarding the dispositive motion, and shall receive and consider
any evidence specifically relating thereto, and shall render a decision thereon,
before  hearing  any  evidence  on  the  merits  of  the  Dispute.

          8.9.8     Scope  of  Arbitrators'  Award  or  Decision.  NutraCea  and
                    ---------------------------------------------
Employee  agree  that  if  the  arbitrators  find  any  disputed  claim  to  be
meritorious,  the  arbitrators  shall  have  the authority to order all forms of
legal  and/or  equitable  relief  that would otherwise be available in court and
that  is  appropriate  to  the  claim.  Any decision or award by the arbitrators
shall  be  in  writing  and  shall be specific enough to permit limited judicial
review  if  necessary.

          8.9.9     Costs  of Arbitration: Attorneys' Fees.  NutraCea shall bear
                    ---------------------------------------
any costs of arbitration that are over and above costs that would be incurred by
Employee  had he/she not been required to arbitrate the Dispute, but instead had
been  free  to  bring  the  action  in  court.   Each  party  shall bear its own
attorneys'  fees.  However, NutraCea and Employee agree that the arbitrators, in
their discretion and consistent with applicable law, may award to the prevailing
party  the  costs and attorneys' fees incurred by that party in participating in
the  arbitration  process  as  long  as  they  do not exceed those that would be
incurred  by  Employee  in  a  court  action,

          8.9.10     Acknowledgment  of  Consent  to  Arbitration.  NOTICE:  BY
                     ---------------------------------------------
EXECUTING  THIS  AGREEMENT  EMPLOYEE AGREES TO HAVE ANY DISPUTE ARISING  OUT  OF
THE  MATTERS   INCLUDED  IN  THE  "RESOLUTION   OF  DISPUTES"  PROVISION DECIDED
BY  NEUTRAL  ARBITRATION  AS  PROVIDED BY CALIFORNIA LAW AND EMPLOYEE WAIVES ANY
RIGHTS  EMPLOYEE

                                        9
<PAGE>
MIGHT  POSSESS  TO  HAVE  THE  DISPUTE  LITIGATED  IN  A COURT OR JURY TRIAL. BY
EXECUTING  THIS  AGREEMENT EMPLOYEE WAIVES EMPLOYEE'S JUDICIAL RIGHTS TO APPEAL.
IF  EMPLOYEE  REFUSES TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION,
EMPLOYEE  MAY  BE  COMPELLED  TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA
CODE  OF  CIVIL  PROCEDURE. EMPLOYEES AGREEMENT TO THIS ARBITRATION PROVISION IS
VOLUNTARY.  BY EXECUTING THIS AGREEMENT EMPLOYEE IS INDICATING THAT EMPLOYEE HAS
READ  AND  UNDERSTOOD THE FOREGOING AND AGREES TO SUBMIT DISPUTES ARISING OUT OF
THE  MATTERS  INCLUDED  IN  THIS  ARBITRATION  OF  DISPUTES PROVISION TO NEUTRAL
ARBITRATION.

     8.10     Exhibits.  All  exhibits  to  which  reference  is  made  deemed
              ---------
incorporated  in  this  Agreement  whether  or  not  actually  attached.

                                          NUTRACEA

                                          /s/ Patricia  McPeak
                                          ------------------------------------
                                          By:  Patricia  McPeak
                                          Title:  Chief  Executive  Officer

                                          EMPLOYEE: MARGIE ADLERMAN

                                          /s/ Margie Alderman
                                          ------------------------------------

                [SIGNATURE  PAGE  TO  EMPLOYMENT  AGREEMENT]

                                       10
<PAGE>
                                   EXHIBIT  A-1

THE  WARRANTS  REPRESENTED  BY THIS CERTIFICATE AND THE SHARES ISSUABLE UPON THE
EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY
STATE  SECURITIES  LAWS  AND  MAY NOT BE TRANSFERRED EXCEPT UPON DELIVERY TO THE
CORPORATION  OF  AN  OPINION OF COUNSEL SATISFACTORY IN FORM AND SUBSTANCE TO IT
THAT  SUCH  TRANSFER WILL NOT VIOLATE THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY  APPLICABLE  STATE  SECURITIES  LAWS.

THE  TRANSFER  OF  THIS  WARRANT  IS  RESTRICTED  AS  DESCRIBED  HEREIN.

NUTRACEA,  A  CALIFORNIA  CORPORATION

Warrant  for the Purchase of Shares of Common Stock, par value $0. 001 per Share

No.  WC-[     ]                                                1,000,000  Shares
Issuance  Date:  January  25,  2005

               THIS  CERTIFIES  that  for  value  received  Margie  Adelman (the
"Holder"), is entitled to subscribe for and purchase from NutraCea, a California
corporation  (the  "Company"),  upon  the terms and conditions set forth herein,
1,000,000  shares  of  the  Company's  Common  Stock, par value $0.001 per share
("Common  Stock"), at a price of $0.30 per share (the "Exercise Price"). As used
herein  the  term  "this  Warrant"  shall  mean and include this Warrant and any
Common  Stock  or  Warrants hereafter issued as a consequence of the exercise or
transfer  of  this Warrant in whole or in part and Warrant Shares shall mean the
shares  of  the  Company's Common Stock issued to Holder upon exercise of all or
part  of  the Warrant. The number of Warrant Shares may be adjusted from time to
time as hereinafter set forth.

     1.     Exercise  Period.  This  Warrant  may  be  exercised as follows: (i)
            -----------------
500,000 upon the execution of this agreement; and (ii) the remaining 500,000 may
be  exercised  after  January  25,  2006 and ending at 5:00 P.M. Pacific time on
January  25,  2015,  unless  earlier  terminated  pursuant  to this Warrant (the
"Exercise  Period").  Notwithstanding  the  foregoing,  in the event that Holder
terminates  her  employment  with  the  Company  or  is terminated for Cause (as
defined in the Employment Agreement by and between the Holder and the Company of
even  date  herewith  ("Employment  Agreement"))  prior to January 25, 2006, all
Warrants  shall  expire. In the event that Holder terminates her employment with
the  Company or is terminated for Cause (as defined in the Employment Agreement)
at any time between January 25, 2005 and January 25, 2006 500,000 Warrants shall
expire.

                                        1
<PAGE>
     2.     Procedure  for  Exercise:  Effect  of  Exercise.
            ------------------------------------------------

          (a)     Cash  Exercise.  This Warrant may be exercised, in whole or in
                  ---------------
part,  by the Holder during normal business hours on any business day during the
Exercise  Period  by  (i)  the presentation and surrender of this Warrant to the
Company  at  its  principal office along with a duly executed Notice of Exercise
(in  the  form attached to this Warrant) specifying the number of Warrant Shares
to  be  purchased,  and  (ii) delivery of payment to the Company of the Exercise
Price  for  the  number of Warrant Shares specified in the Notice of Exercise by
cash,  wire  transfer of immediately available funds to a bank account specified
by  the  Company,  or  by  certified  or  bank  cashier's  check.

          (b)     Cashless Exercise.   This Warrant may also be exercised by the
                  ------------------
Holder  through  a  cashless  exercise,  as described in this Section 2(b). This
Warrant  may  be  exercised  in  whole  or  in part, by the Holder during normal
business  hours  on  any  business  day  during  the  Exercise  Period  by  the
presentation  and  surrender  of  this  Warrant  to the Company at its principal
office  along  with  a duly executed Notice of Exercise specifying the number of
Warrant  Shares  to be applied to such exercise. The number of Warrant Shares to
be  delivered  upon exercise of this Warrant pursuant to this Section 2(b) shall
equal the value of this Warrant (or the portion thereof being canceled) computed
as  of  the  date of delivery of this Warrant to the Company using the following
formula:

          X  =  Y  (A-B)
                --------
                   A

Where:

          X  =  the  number  of  shares  of  Common Stock to be issued to Holder
                under this Section  2(b);
          Y  =  the number  of  Warrant  Shares  identified  in the Notice of
                Exercise as being applied  to  the  subject  exercise;
          A  =  the Current  Market  Price  on  such  date;  and
          B  =  the Exercise  Price

For purposes of this Section 2(b) and Section 6, the "Current Market Price"  per
                                                     ----------------------
share  of  Common  Stock on any date shall mean the average closing price of the
last  three  trading  days  with  respect  to securities listed on the principal
national  securities  exchange  on  which such security is listed or admitted to
trading  or,  if  such  security  is  not  listed  or admitted to trading on any
national  securities exchange, the average closing price of such security on the
three  (3)  consecutive  trading  days  immediately  preceding  such date in the
over-the-counter  market  as  reported by the National Association of Securities
Dealers,  Inc.  Automated Quotations System or such other system then in use or,
if  such  security is not quoted by any such organization, the three day average
closing  price  of  such  security  as of the three (3) consecutive trading days
immediately  preceding  such  date furnished by a New York Stock Exchange member
firm  selected  by  the  Company,  or if such security is not quoted by any such
organization  and  no

                                        2
<PAGE>
such  New  York  Stock Exchange member firm is able to provide such prices, such
price  as  is  determined  by  the  Board  of  Directors  in  good  faith.

          The  Company  acknowledges  and agrees that this Warrant was issued on
the  Issuance  Date.  Consequently, the Company acknowledges and agrees that, if
the  Holder  conducts  a  cashless  exercise  pursuant to this Section 2(b), the
period  during  which the Holder held this Warrant may, for purposes of Rule 144
promulgated under the Securities Act of 1933, as amended (the "Securities Act"),
be  "tacked"  to  the  period  during  which the Holder holds the Warrant Shares
received  upon  such  cashless  exercise.

          Notwithstanding the foregoing, except in connection with a transaction
described  in the proviso in the first sentence of this Section 2(b), the Holder
may  conduct  a  cashless  exercise pursuant to this Section 2(b) only after the
first  anniversary  of  the  Issuance  Date.

          (c)  Effect  of  Exercise. Upon receipt by the Company of this Warrant
               ---------------------
and a Notice of Exercise, together with proper payment of the Exercise Price, as
provided in this Section 2, the Company agrees that such Warrant Shares shall be
deemed to be issued to the Holder as the record holder of such Warrant Shares as
of  the close of business on the date on which this Warrant has been surrendered
and  payment  has  been  made  for  such  Warrant Shares in accordance with this
Warrant and the Holder shall be deemed to be the holder of record of the Warrant
Shares,  notwithstanding that the stock transfer books of the Company shall then
be  closed  or that certificates representing such Warrant Shares shall not then
be actually delivered to the Holder. A stock certificate or certificates for the
Warrant  Shares  specified  in  the Notice of Exercise shall be delivered to the
Holder  as  promptly  as practicable, and in any event within seven (7) business
days,  thereafter.  The  stock  certificate(s) so delivered shall be in any such
denominations  as  may  be  reasonably  specified by the Holder in the Notice of
Exercise.  If  this Warrant should be exercised in part only, the Company shall,
upon  surrender  of  this  Warrant  for cancellation, execute and deliver within
seven  (7)  business  days  a  new Warrant evidencing the right of the Holder to
purchase  the  balance  of  the  Warrant  Shares  subject to purchase hereunder.

     3.     Registration  of  Warrants.
            ---------------------------

          3.1  Warrant  Register.  Any  Warrants  issued  upon  the  transfer or
               ------------------
exercise  in part of this Warrant shall be numbered and shall be registered in a
Warrant  Register as they are issued. The Company shall be entitled to treat the
registered  holder  of  any Warrant on the Warrant Register as the owner in fact
thereof  for  all  purposes and shall not be bound to recognize any equitable or
other  claim to or interest in such Warrant on the part of any other person, and
shall  not  be  liable  for  any  registration or transfer of Warrants which are
registered  or  to  be registered in the name of a fiduciary or the nominee of a
fiduciary  unless  made with the actual knowledge that a fiduciary or nominee is
committing  a  breach  of  trust in requesting such registration or transfer, or
with  the  knowledge of such facts that its participation therein amounts to bad
faith.  This Warrant shall be transferable only on the books of the Company upon
delivery  thereof duly endorsed by the Holder or by its duly authorized attorney
or

                                        3
<PAGE>
representative,  or accompanied by proper evidence of succession, assignment, or
authority  to  transfer.  In  all  cases  of  transfer by an attorney, executor,
administrator,  guardian,  or  other  legal  representative,  duly authenticated
evidence  of  his  or  its authority shall be produced. Upon any registration of
transfer,  the  Company  shall  deliver  a new Warrant or Warrants to the person
entitled  thereto.  This  Warrant  may be exchanged, at the option of the Holder
thereof,  for  another Warrant, or other Warrants of different denominations, of
like tenor and representing in the aggregate the right to purchase a like number
of  Warrant  Shares, upon surrender to the Company or its duly authorized agent.

          3.2 Piggyback Registration Rights. Subject to the cutback restrictions
              ------------------------------
set  forth below, if at any time after the Issuance Date, the Company shall seek
to  register any shares of its Common Stock under the Securities Act for sale to
the  public  for its own account or on me account of others (except with respect
to  registration  statements  on Form S-4, S-8 or another form not available for
registering the Warrant Shares for sale to the public) the Company will promptly
give  written  notice  thereof  to  the  Holder.  If  within ten (10) days after
Holder's  receipt  of  such  notice the Holder requests the inclusion of Holders
Warrant  Snares,  subject  to  the  limitations  set  forth  below,  in  such
registration,  the  Company will use its best efforts to effect the registration
under  me  Securities Act of such Warrant Shares. The number of Holder's Warrant
Shares  that may be included on any such registration statement shall be subject
to  the  following: (1) in the event the Company seeks to register any shares of
its  Common Stock at any time after the second anniversary of the Issuance Date.
Holder  may  be  entitled  to  include  all or part, as determined by Holder and
subject  to  cutbacks  required  by  underwriters  as  stated below, of Holder's
Warrant Shares; and (2) in the event the Company seeks to register any shares of
its  Common  Stock  at any time after the Issuance Date and the Company's senior
officers  and directors participate in such registration, Holder may be entitled
to  include  the  number of vested Warrant Shares which shall be apportioned pro
rata  among  the Holder and senior officers and directors according to the total
amount  of securities entitled to be included therein owned by Holder and senior
officers  and  directors  of the Company taken as a single group. In the case of
the  registration  of  shares of capital stock by the Company in connection with
any  underwritten  public  offering,  if  the  underwriter(s)  determines  that
marketing  factors  require  a  limitation on the number of Warrant Shares to be
offered, subject to the following sentence, the Company shall not be required to
register  Warrant  Shares  in  excess  of  the  amount, if any, of shares of the
capital  stock  which  the  principal  underwriter of such underwritten offering
shall reasonably and in good faith agree to include in such offering in addition
to any amount to be registered for the account of the Company. If any limitation
of  the  number  of  shares  to be registered by holders of the Company's Common
Stock  or  shares  of  Warrant Shares to be registered by the Holder is required
pursuant  to  this  Section  3.2,  the  number of shares to be excluded shall be
determined  by  the  principal  underwriter  of  such  underwritten  offering.

               4.  Restrictions  on  Transfer. (a) The Holder, as of the date of
                   ---------------------------
issuance  hereof,  represents  to  the Company that such Holder is acquiring the
Warrants  for its own account for investment purposes and not with a view to the
distribution  thereof  or  of the Warrant Shares. Notwithstanding any provisions
contained  in  this  Warrant  to  the  contrary,

                                        4
<PAGE>
Holder  agrees  that  it  shall  not, directly or indirectly, make any offering,
sale,  assignment,  transfer,  pledge,  encumbrance,  contract to sell, grant an
option  to purchase or make any other disposition of this Warrant or the Warrant
Shares  issued  upon  exercise  of  the  Warrant or enter into any swap or other
derivative transaction that transfer to another, in whole or in part, any of the
economic benefit or risk of ownership of such Warrant or Warrant Shares, whether
any such transaction described above is to be settled by delivery of the Warrant
Shares  or  other  securities, in cash or otherwise for the period of Thirty-Six
(36)  months  after  January  26,  2005  or while Holder is employed by Company,
unless prior written consent is obtained by Holder from the Company. In addition
to  the  foregoing,  any  potential  transfer  by Holder shall be subject to the
delivery  to the Company of an opinion of the Holder's counsel or a registration
of  such Warrant Shares under the Securities Act has become effective or after a
sale of such Warrant or Warrant Shares has been consummated pursuant to Rule 144
or  Rule 144A under the Securities Act The Company may place restrictive legends
on  the certificates representing the Warrant Shares issued upon exercise of the
Warrants  and  impose  stop  transfer  instructions  with respect to the Warrant
Shares  beneficially  held  by  Holder  until  the  end  of  such  period.

          (b)  Each  stock  certificate  representing Warrant Shares issued upon
exercise  or  exchange  of this Warrant shall bear the following legend, and any
other  legend deemed appropriate and in accordance with this Warrant, unless the
opinion  of  counsel  referred  to  in  Section  4(b)  states such legend is not
required:

     "THE  SECURITIES  EVIDENCED  BY  THIS  CERTIFICATE HAVE NOT BEEN REGISTERED
     UNDER  THE  SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS AND MAY NOT
     BE  TRANSFERRED  EXCEPT  UPON  DELIVERY TO THE CORPORATION OF AN OPINION OF
     COUNSEL  SATISFACTORY  IN  FORM AND SUBSTANCE TO IT THAT SUCH TRANSFER WILL
     NOT VIOLATE THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
     SECURITIES LAWS."

     5.     Reservation  of  Shares.  The  Company shall at all times during the
            ------------------------
Exercise  Period  reserve  and keep available out of its authorized and unissued
Common Stock, solely for the purpose of providing for the exercise of the rights
to  purchase all Warrant Shares granted pursuant to the Warrants, such number of
shares of Common Stock as shall, from time to time, be sufficient therefore. The
Company covenants that all shares of Common Stock issuable upon exercise of this
Warrant,  upon  receipt by the Company of the full Exercise Price therefore, and
all  shares  of  Common Stock issuable upon conversion of this Warrant, shall be
validly  issued,  fully  paid,  non-assessable,  and  free of preemptive rights.

     6.     Adjustments.  The  number  of  shares  of Common Stock issuable upon
            ------------
exercise  of  the  Warrants  shall  be  adjusted  from  time to time as follows:

          (a) (i) In the event that the Company shall (A) pay a dividend or make
     a  distribution,  in  shares  of  Common  Stock,  on  any  class of capital
     stock  of the Company or any subsidiary which is not directly or indirectly
     wholly owned by the Company, (B)

                                        5
<PAGE>
     split  or  subdivide  its  outstanding  Common  Stock into a greater number
     of  shares,  (C) combine its outstanding Common Stock into a smaller number
     of  shares,  then  in  each  such  case  the number of shares issuable upon
     exercise  of this Warrant shall be adjusted so that the Holder of a Warrant
     thereafter surrendered for exercise shall be entitled to receive the number
     of  shares  of  Common Stock that such Holder would have owned or have been
     entitled  to  receive  after  the occurrence of any of the events described
     above  had  such Warrant been exercised immediately prior to the occurrence
     of  such  event  An  adjustment made pursuant to this Section 6(a)(i) shall
     become effective immediately after the close of business on the record date
     in  the  case  of a dividend or distribution (except as provided in Section
     6(e)  below)  and  shall  become  effective  immediately after the close of
     business  on  the  effective date in the case of such subdivision, split or
     combination, as the case may be.

               (ii) No adjustment in the Exercise Price shall be required unless
     the  adjustment  would  require  an  increase or decrease of at least 1% in
     the  Exercise Price then in effect, provided, however, that any adjustments
     that  by  reason  of this Section 6(a) are not required to be made shall be
     carried  forward  and  taken into account in any subsequent adjustment. All
     calculations  under  this Section 6(a) shall be made to the nearest cent or
     nearest 1/100th of a share.

               (iii) In the event that, at any time as a result of an adjustment
     made  .  pursuant  to  Sections  6(a)(i)  and 6(a)(ii) above, the Holder of
     any  Warrant  thereafter  surrendered for exercise shall become entitled to
     receive  any  shares  of the Company other than shares of the Common Stock,
     thereafter  the  number of such other shares so receivable upon exercise of
     any  such  Warrant  shall  be  subject to adjustment from time to time in a
     manner  and  on terms as nearly equivalent as practicable to the provisions
     with respect to the Common Stock contained in Sections 6(a)(i) and 6(a)(ii)
     above,  and  the  other provisions of this Section 6(a) with respect to the
     Common Stock shall apply on like terms to any such other shares.

          (b) In case of any reclassification of the Common Stock (other than in
a  transaction  to  which  Section  6(a)(i)  applies),  any consolidation of the
Company  with,  or  merger  of the Company into, any other entity, any merger of
another entity into the Company (other than a merger that does not result in any
reclassification,  conversion, exchange or cancellation of outstanding shares of
Common  Stock  of the Company), any sale or transfer of all or substantially all
of  the  assets  of  the Company or any compulsory share exchange which does not
result  in  the  cashless  exercise  or cancellation of this Warrant pursuant to
Section  2(b),  pursuant  to  which share exchange the Common Stock is converted
into  other  securities,  cash or other property, then lawful provision shall be
made  as  part  of the terms of such transaction whereby the Holder of a Warrant
then outstanding shall have the right thereafter, during the period such Warrant
shall  be  exercisable, to exercise such Warrant only for the kind and amount of
securities,  cash  and  other  property  receivable  upon  the reclassification,
consolidation,  merger,  sale,  transfer  or  share  exchange by a holder of the
number  of shares of Common Stock of the Company into which a Warrant might have
been  able  to  exercise  for

                                        6
<PAGE>
immediately prior to the reclassification, consolidation, merger, sale, transfer
or  share  exchange assuming that such holder of Common Stock failed to exercise
rights  of  election,  if  any,  as to the kind or amount of securities, cash or
other  property  receivable  upon  consummation  of  such transaction subject to
adjustment  as provided in Section 6(a) above following the date of consummation
of  such  transaction.  The  Company shall not effect any such reclassification,
consolidation,  merger,  sale,  transfer,  share  exchange  or other disposition
unless  prior  to  or simultaneously with the consummation thereof the successor
corporation  (if  other  than  the Company) resulting from such consolidation or
merger,  or  the  corporation  purchasing  or otherwise acquiring such assets or
other  appropriate  corporation  or  entity  shall assume, by written instrument
executed  and  delivered  to the Holder, the obligation to deliver to the Holder
upon  its exercise of the Warrant such shares of stock, securities or assets as,
in  accordance  with  the  foregoing  provisions,  the Holder may be entitled to
purchase  and  the  other  obligations under this Warrant The provisions of this
Section  6(b)  shall  similarly  apply  to  successive  reclassifications,
consolidations,  mergers,  sales,  transfers  or  share  exchanges.

          (c)     If:
               (i)     the  Company shall take any action which would require an
                       adjustment pursuant to Section 6(a); or

               (ii)    the  Company  shall authorize the granting to the holders
                       of  its  Common  Stock  generally  of  rights,  warrants
                       or  options  to  subscribe  for or purchase any shares of
                       any  class  or  any other rights, warrants or options; or

               (iii)   there  shall  be  any  reclassification  or change of the
                       Common  Stock  (other  than  a  subdivision  or
                       combination  of  its outstanding Common Stock or a change
                       in par  value)  or any consolidation, merger or statutory
                       share  exchange  to  which the Company is a party and for
                       which  approval  of  any  stockholders  of the Company is
                       required,  or  the  sale  or  transfer  of  all  or
                       substantially  all  of  the  assets  of  the  Company; or

               (iv)    there  shall  be  a voluntary or involuntary dissolution,
                       liquidation or winding up of the Company;

then,  the  Company  shall  cause  to  be  filed with the transfer agent for the
Warrants and shall cause to be mailed to each Holder at such Holder's address as
shown  on  the  books  of  the  transfer  agent for the Warrants, as promptly as
possible,  but  at  least  30  days  prior  to  the  applicable date hereinafter
specified,  a  notice  stating (A) the date on which a record is to be taken for
the  purpose  of  such dividend, distribution or granting of rights, warrants or
options, or, if a record is not to be taken, the date as of which the holders of
Common  Stock  of  record  to

                                        7
<PAGE>
be entitled to such dividend, distribution or rights, warrants or options are to
be  determined,  or  (B)  the  date  on  which  such  reclassification,  change,
consolidation,  merger,  statutory  share exchange, sale, transfer, dissolution,
liquidation or winding-up is expected to become effective or occur, and the date
as  of  which  it  is  expected  that holders of Common Stock of record shall be
entitled  to  exchange  their  shares  of  Common  Stock for securities or other
property  deliverable upon such reclassification, change, consolidation, merger,
statutory  share  exchange,  sale, transfer, dissolution, liquidation or winding
up.  Failure  to  give  such  notice  or any defect therein shall not affect the
legality  or  validity  of  the  proceedings  described  in  this  Section 6(c).

          (d)     Whenever an adjustment is made as herein provided, the Company
shall promptly file with the transfer agent for the Warrants a certificate of an
officer  of  the  Company setting forth the adjustment and setting forth a brief
statement  of the facts requiring such adjustment and a computation thereof. The
Company  shall  promptly  cause a notice of such adjustment to be mailed to each
Holder.

          (e)     In  any CASE in which Section 6(a) provides that an adjustment
shall become effective immediately after a record date for an event and the date
fixed for such adjustment pursuant to Section 6(a) occurs after such record date
but  before the occurrence of such event, the Company may defer until the actual
occurrence  of  such  event  (i) issuing to the Holder of any Warrants exercised
after  such  record  date and before the occurrence of such event the additional
shares of Common Stock issuable upon such conversion by reason of the adjustment
required  by  such  event  over  and  above  the Common Stock issuable upon such
exercise before giving effect to such adjustment, and (ii) paying to such holder
any  amount  in  cash  in  lieu  of  any  fraction  pursuant  to  Section  6(g).

          (f)     Upon each adjustment of the Exercise Price, this Warrant shall
thereafter  evidence the right to purchase, at the adjusted Exercise Price, that
number of shares (calculated to the nearest thousandth) obtained by dividing (i)
the  product  obtained  by  multiplying  the  number  of shares purchasable upon
exercise  of  this  Warrant  prior  to adjustment of the number of shares by the
Exercise  Price in effect prior to adjustment of the Exercise Price, by (ii) the
Exercise  Price  in  effect  after  such  adjustment  of  the  Exercise  Price.

          (g)     The Company shall not be required to issue fractions of shares
of  Common Stock or other capital stock of the Company upon the exercise of this
Warrant.  If  any  fraction of a share would be issuable on the exercise of this
Warrant  (or  specified  portions  thereof),  the  Company  shall  purchase such
fraction  for an amount in cash equal to the same fraction of the Current Market
Price  of  such  share  of Common Stock on the date of exercise of this Warrant.

          (h)     In case the Company shall take any action affecting the Common
Stock,  other  than actions described in this Section 6, which in the opinion of
the  Board  of Directors would materially adversely affect the exercise right of
the  Holder, the Exercise Price may be adjusted, to the extent permitted by law,
in  such  manner,  if  any,  and  at  such  time,  as  the  Board

                                        8
<PAGE>
of  Directors  may  determine  to  be  equitable in the circumstances; provided,
however,  that  in no event shall the Board of Directors be required to take any
such  action,

     7.     Transfer  Taxes. The issuance of any shares or other securities upon
            ----------------
the  exercise  of  this  Warrant,  and  the  delivery  of  certificates or other
instruments  representing such shares or other securities, shall be made without
charge  to  the  Holder for any tax or other charge in respect of such issuance.
The  Company shall not, however, be required to pay any tax which may be payable
in respect of any transfer involved in the issue and delivery of any certificate
in a name other than that of the Holder and the Company shall not be required to
issue  or  deliver  any  such certificate unless and until the person or persons
requesting  the  issue thereof shall have paid to the Company the amount of such
tax  or  shall have established to the satisfaction of the Company that such tax
has  been  paid.

     8.     Loss  or Mutilation of Warrant Upon receipt of evidence satisfactory
            ------------------------------
to  the  Company  of  the loss, theft, destruction, or mutilation of any Warrant
(and  upon surrender of any Warrant if mutilated), and upon reimbursement of the
Company's  reasonable incidental expenses, the Company shall execute and deliver
to  me  Holder  thereof  a  new  Warrant  of like date, tenor, and denomination.

     9.     No  Rights  as  a  Stockholder.  The Holder of any Warrant shall not
            -------------------------------
have,  solely  on  account  of  such  status, any rights of a stockholder of the
Company,  either  at  law  or  in  equity,  or  to  any  notice  of  meetings of
stockholders  or  of any other proceedings of the Company, except as provided in
this  Warrant

     10.     Governing  Law.  This Warrant shall be construed in accordance with
             ---------------
the  laws  of the State of California applicable to contracts made and performed
within  such  State,  without  regard  to  principles  of  conflicts  of  law.

     11.     Beneficial  Ownership. The Company shall not effect the exercise of
             ----------------------
this  Warrant by any Holder, and no person who is a holder of this Warrant shall
have  the right to exercise this Warrant, to the extent that after giving effect
to  such  exercise,  such  person (together with such person's affiliates) would
beneficially  own in excess of 10% of the shares of the Common Stock outstanding
immediately  after giving effect to such exercise. For purposes of the foregoing
sentence,  the  aggregate number of shares of Common Stock beneficially owned by
such  person and its affiliates shall include, without limitation, the number of
shares  of  Common  Stock issuable upon exercise of this Warrant with respect to
which the determination of such sentence is being made, but shall exclude shares
of  Common  Stock  which  would  be issuable upon (a) exercise of the remaining,
unexercised  portion  of  this Warrant beneficially owned by such person and its
affiliates,  and  (b)  exercise  or conversion of the unexercised or unconverted
portion  of  any  other  securities  of  the Company beneficially owned by  such
person  and  its  affiliates  (including,  without  limitation,  any debentures,
convertible  notes  or  convertible  preferred  stock  or warrants) subject to a
limitation  on  conversion  or  exercise  analogous  to the limitation contained
herein.  Except  as  set  forth  in the preceding sentence, for purposes of this
Section  11,  beneficial  ownership  shall  be  calculated  in

                                        9
<PAGE>
accordance  with  Section  13(d)  of  the  Securities  Exchange  Act of 1934, as
amended.  For purposes of this Warrant, in determining the number of outstanding
shares of Common Stock, a Holder may rely on the number of outstanding shares of
Common  Stock as reflected in (i) the Company's most recent Form 10-Q, Form 10-K
or  other public filing with the Securities and Exchange Commission, as the case
may  be.  (ii)  a  more  recent public announcement by the Company, or (iii) any
other  notice  by  the Company or its transfer agent setting forth the number of
shares of Common Stock outstanding. For any reason at any time, upon the written
or  oral  request  of  the  Holder of this Warrant, the Company shall within two
business  days  confirm  orally and in writing to the Holder of this Warrant the
number  of  shares  of Common Stock then outstanding. In any case, the number of
outstanding  shares  of  Common Stock shall be determined after giving effect to
the  conversion  or  exercise of securities of the Company by the Holder of this
Warrant and its affiliates since the date as of which such number of outstanding
shares  of  Common Stock was reported In effecting the exercise of this Warrant,
the  Company shall be entitled to rely on a representation by the Holder of this
Warrant as to the number of shares that it beneficially owns for purposes of the
above  10%  limitation  calculation.

                                       10
<PAGE>
Dated:  January  25,  2005

                                          NUTRACEA

                                          /s/ Patricia  McPeak
                                          ------------------------------------
                                          By:  Patricia  McPeak
                                          Title:  Chief  Executive  Officer

                          [SIGNATURE PAGE TO WARRANT]

<PAGE>
                               FORM OF ASSIGNMENT

(To  be executed by the registered holder if such holder desires to transfer the
attached  Warrant.)

     FOR  VALUE  RECEIVED,  ________________________  hereby sells, assigns, and
transfers  unto  ___________  a  Warrant  to  purchase _ shares of Common Stock,
par  value  $[0.001]  per share, of NUTRACEA. (the "Company"), together with all
right,  title,  and interest therein, and does hereby irrevocably constitute and
appoint  ________ attorney to transfer such Warrant on the books of the Company,
with full power of substitution.

                                     Dated:
                                           ------------------------

                                     By:
                                        ---------------------------------
                                     Signature

     The  signature  on  the foregoing Assignment must correspond to the name as
written upon the face of this Warrant in every particular, without alteration or
enlargement or any change whatsoever.

<PAGE>
To:     NutraCea.
        ---------
        1261  Hawks' Flight Court
        -------------------------
        El Dorado Hills, CA 95762
        -------------------------
        Attention: Chief Executive  Officer

                               NOTICE OF EXERCISE

     The  undersigned  hereby  exercises his or its rights to purchase _________
Warrant Shares covered by the within Warrant and tenders payment herewith in the
amount  of  $ _______ by [tendering cash or delivering a certified check or bank
cashier's  check,  payable  to  the  order  of the Company) [surrendering ______
shares  of  Common  Stock  received upon exercise of the attached Warrant, which
shares have a Current Market Price equal to such payment] in accordance with the
terms  thereof,  and requests that certificates for such securities be issued in
the name of, and delivered to:

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

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

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

                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and.  if  such  number  of  Warrant  Shares  shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the Warrant
Shares covered by the within Warrant be registered in the name of, and delivered
to.  the  undersigned  at  the  address  stated  below.
Dated:

                                     Dated:
                                           ------------------------

                                     By:
                                        ---------------------------------
                                        Print Name

                                     ------------------------------------
                                     Signature

Address:

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

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

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

<PAGE>
                                  EXHIBIT A-2

THE  WARRANTS  REPRESENTED  BY THIS CERTIFICATE AND THE SHARES ISSUABLE UPON THE
EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY
STATE  SECURITIES  LAWS  AND  MAY NOT BE TRANSFERRED EXCEPT UPON DELIVERY TO THE
CORPORATION  OF  AN  OPINION OF COUNSEL SATISFACTORY IN FORM AND SUBSTANCE TO IT
THAT  SUCH  TRANSFER WILL NOT VIOLATE THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY  APPLICABLE  STATE  SECURITIES  LAWS.

THE  TRANSFER  OF  THIS  WARRANT  IS  RESTRICTED  AS  DESCRIBED  HEREIN.

                       NUTRACEA, A CALIFORNIA CORPORATION

              Warrant for the Purchase of Shares of Common Stock,
                           par value $0.001 per Share

No.  WC-[__]                                                   1,000,000  Shares
Issuance  Date:  January  25,  2005

          THIS CERTIFIES that, for value received Margie Adelman (the "Holder"),
is  entitled  to  subscribe  for  and  purchase  from  NutraCea,  a  California
corporation  (the  "Company"),  upon  the terms and conditions set forth herein,
1.000,000  shares  of  the  Company's  Common  Stock, par value $0.001 per share
("Common  Stock"), at a price of $0.30 per share (the "Exercise Price"). As used
herein  the  term  "this  Warrant"  shall  mean and include this Warrant and any
Common  Stock  or  Warrants hereafter issued as a consequence of the exercise or
transfer  of  this Warrant in whole or in part. The number of Warrant Shares may
be adjusted from time to time as hereinafter set forth.

     1.  Exercise Period. This Warrant may be exercised at any time or from time
         ----------------
to time during the period commencing upon (i) the Company reporting annual gross
sales  totaling  Twenty  Five Million Dollars ($25,000,000) or more and (ii) the
Company  reports  a positive EBITDA, and both (i) and (ii) occur during the term
of  Holder's employment with the Company and ending at 5:00 P.M. Pacific time on
January  25,  2015,  unless earlier terminated pursuant to the terms hereof (the
"Exercise  Period").  For  purposes  of the foregoing, the calculation of EBITDA
shall  not include noncash charges. If Holder terminates her employment with the
Company  or  is  terminated  for  Cause  (as defined in the Employment Agreement
entered  into  by  and  between the Holder and the Company of even date herewith
("Employment Agreement")) (x) prior to the completion of the Term (as defined in
the Employment Agreement), or (y) prior to the terms of (i) and (ii) above being
met.  this  Warrant  shall  immediately  expire.

                                        1
<PAGE>
     2.     Procedure  for  Exercise:  Effect  of  Exercise.
            ------------------------------------------------

          (a)     Cash  Exercise.  This Warrant may be exercised, in whole or in
                  ---------------
part,  by the Holder during normal business hours on any business day during the
Exercise  Period  by  (i)  the presentation and surrender of this Warrant to the
Company  at  its  principal office along with a duly executed Notice of Exercise
(in  the  form attached to this Warrant) specifying the number of Warrant Shares
to  be  purchased,  and  (ii) delivery of payment to the Company of the Exercise
Price  for  the  number of Warrant Shares specified in the Notice of Exercise by
cash,  wire  transfer of immediately available funds to a bank account specified
by  the  Company,  or  by  certified  or  bank  cashier's  check.

          (b)     Cashless Exercise.   This Warrant may also be exercised by the
                  ------------------
Holder  through  a  cashless  exercise,  as described in this Section 2(b). This
Warrant  may  be  exercised,  in  whole  or in part, by the Holder during normal
business  hours  on  any  business  day  during  the  Exercise  Period  by  the
presentation  and  surrender  of  this  Warrant  to the Company at its principal
office  along  with  a duly executed Notice of Exercise specifying the number of
Warrant  Shares  to be applied to such exercise. The number of Warrant Shares to
be  delivered  upon exercise of this Warrant pursuant to this Section 2(b) shall
equal the value of this Warrant (or the portion thereof being canceled) computed
as  of  the  date of delivery of this Warrant to the Company using the following
formula:

          X  =  Y  (A-B)
                --------
                   A

Where:

          X  =  the  number  of  shares  of  Common Stock to be issued to Holder
                under this Section  2(b);
          Y  =  the number  of  Warrant  Shares  identified  in the Notice of
                Exercise as being applied  to  the  subject  exercise;
          A  =  the Current  Market  Price  on  such  date;  and
          B  =  the Exercise  Price

For  purposes of this Section 2(b) and Section 6, the "Current Market Price" per
                                                      ----------------------
share  of  Common  Stock on any date shall mean the average closing price of the
last  three  trading  days  with  respect  to securities listed on the principal
national  securities  exchange  on  which such security is listed or admitted to
trading  or,  if  such  security  is  not  listed  or admitted to trading on any
national  securities exchange, the average closing price of such security on the
three  (3)  consecutive  trading  days  immediately  preceding  such date in the
over-the-counter  market,  as reported by the National Association of Securities
Dealers,  Inc.  Automated Quotations System or such other system then in use or,
if  such  security is not quoted by any such organization, the three day average
closing  price  of  such  security  as  of me three (3) consecutive trading days
immediately  preceding  such  date furnished by a New York Stock Exchange member
firm

                                        2
<PAGE>
selected  by  the  Company,  or  if  such  security  is  not  quoted by any such
organization  and no such New York Stock Exchange member firm is able to provide
such  prices,  such  price  as  is  determined by the Board of Directors in good
faith.

          The  Company  acknowledges  and agrees that this Warrant was issued on
the  Issuance  Date.  Consequently, the Company acknowledges and agrees that, if
the  Holder  conducts  a  cashless  exercise  pursuant to this Section 2(b), the
period  during  which the Holder held this Warrant may, for purposes of Rule 144
promulgated under the Securities Act of 1933, as amended (the "Securities Act"),
be  "tacked"  to  the  period  during  which the Holder holds the Warrant Shares
received  upon  such  cashless  exercise.

          Notwithstanding the foregoing, except in connection with a transaction
described  in the proviso in the first sentence of this Section 2(b), the Holder
may  conduct  a  cashless  exercise pursuant to this Section 2(b) only after the
first  anniversary  of  the  Issuance  Date.

          (c)  Effect  of  Exercise. Upon receipt by the Company of this Warrant
               ---------------------
and a Notice of Exercise, together with proper payment of the Exercise Price, as
provided in this Section 2, the Company agrees that such Warrant Shares shall be
deemed to be issued to the Holder as the record holder of such Warrant Shares as
of  the close of business on the date on which this Warrant has been surrendered
and  payment  has  been  made  for  such  Warrant Shares in accordance with This
Warrant  and me Holder shall be deemed to be the holder of record of the Warrant
Shares, notwithstanding mat me stock transfer books of the Company shall then be
closed  or  that certificates representing such Warrant Shares shall not then be
actually  delivered  to  the Holder. A stock certificate OR certificates for the
Warrant  Shares  specified  in  the Notice of Exercise shall be delivered to the
Holder  as  promptly  as practicable, and in any event within seven (7) business
days,  thereafter.  The  stock  certificate(s) so delivered shall be in any such
denominations  as  may  be  reasonably  specified by the Holder in the Notice of
Exercise.  If  this Warrant should be exercised in part only, the Company shall,
upon  surrender  of  this  Warrant  for cancellation, execute and deliver within
seven  (7)  business  days  a  new Warrant evidencing the right of the Holder to
purchase  the  balance  of  the  Warrant  Shares  subject to purchase hereunder.

     3.     Registration  of  Warrants:  Transfer  of  Warrants.
            ----------------------------------------------------

          3.1  Warrant  Register.  Any  Warrants  issued  upon  the  transfer or
               ------------------
exercise  in part of this Warrant shall be numbered and shall be registered in a
Warrant  Register as they are issued. The Company shall be entitled to treat the
registered  holder  of  any Warrant on the Warrant Register as the owner in fact
thereof  for  all  purposes and shall not be bound to recognize any equitable or
other  claim to or interest in such Warrant on the part of any other person, and
shall  not  be  liable  for  any  registration or transfer of Warrants which are
registered  or  to  be registered in the name of a fiduciary or the nominee of a
fiduciary  unless  made with the actual knowledge that a fiduciary or nominee is
committing  a  breach  of  trust in requesting such registration or transfer, or
with  the  knowledge of such facts that its participation therein amounts to bad
faith.  This  Warrant  shall  be  transferable  only on the books of the Company

                                        3
<PAGE>
upon  delivery  thereof  duly  endorsed  by the Holder or by its duly authorized
attorney  or  representative,  or  accompanied by proper evidence of succession,
assignment,  or  authority to transfer. In all cases of transfer by an attorney,
executor,  administrator,  guardian,  or  other  legal  representative,  duly
authenticated  evidence  of  his  or  its  authority shall be produced. Upon any
registration of transfer, the Company shall deliver a new Warrant or Warrants to
the person entitled thereto. This Warrant may be exchanged, at the option of the
Holder  thereof,  for  another  Warrant,  or  other  Warrants  of  different
denominations,  of  like  tenor  and  representing in the aggregate the right to
purchase  a  like number of Warrant Shares, upon surrender to the Company or its
duly  authorized  agent.

          3.2     Piggyback  Registration  Rights. If at any time or times after
                  --------------------------------
January  25,  2007,  the Company shall seek to register any shares of its Common
Stock  under the Securities Act for sale to the public for its own account or on
the  account  of  others (except with respect to registration statements on Form
S-4,  S-8  or  another form not available for registering the Warrant Shares for
sale  to  the  public), the Company will promptly give written notice thereof to
the  Holder.  If  within  ten  (10)  days after their receipt of such notice the
Holder  requests  the  inclusion  of  some or all of the Warrant Shares owned by
Holder  received  by  Holder upon exercise of this Warrant in such registration,
the  Company  will  use  its  best  efforts to effect the registration under the
Securities Act of such Warrant Shares. In the case of the registration of shares
of  capital  stock  by  the  Company  in connection with any underwritten public
offering,  if  the  underwriter(s)  determines  that marketing factors require a
Limitation  on  the  number  of  Warrant  Shares  to  be offered, subject to the
following sentence, the Company shall not be required to register Warrant Shares
in  excess  of  the  amount,  if  any,  of shares of the capital stock which the
principal underwriter of such underwritten offering shall reasonably and in good
faith  agree  to  include  in  such  offering  in  addition  to any amount to be
registered  for  the  account of the Company. If any limitation of the number of
shares  to  be  registered by holders of the Company's Common Stock or shares of
Warrant  Shares  to  be  registered  by  the Holder is required pursuant to this
Section  3.2,  the  number  of  shares to be excluded shall be determined by the
principal  underwriter  of  such  underwritten  offering.

     4.     Restrictions on Transfer. (a) The Holder, as of the date of issuance
            -------------------------
hereof, represents to the Company that such Holder is acquiring the Warrants for
its  own account for investment purposes and not with a view to the distribution
thereof  or  of  the Warrant Shares. Notwithstanding any provisions contained in
this  Warrant  to  the  contrary,  Holder  agrees that it shall not, directly or
indirectly,  make  any offering, sale, assignment transfer, pledge, encumbrance,
contract  to  sell, grant an option to purchase or make any other disposition of
this  Warrant or the Warrant Shares issued upon exercise of the Warrant or enter
into any swap or other derivative transaction that transfer to another, in whole
or  in part, any of the economic benefit or risk of ownership of such Warrant or
Warrant Shares, whether any such transaction described above is to be settled by
delivery of the Warrant Shares or other securities, in cash or otherwise for the
period  of  Thirty  Six  (36)  Months  after January 25, 2005 or while Holder is
employed by Company, unless prior written consent is obtained by Holder from the
Company. In addition to the foregoing, any potential transfer by Holder shall be
subject  to the delivery to the Company of an opinion of the Holder's counsel or
a  registration  of  such  Warrant  Shares

                                        4
<PAGE>
under the Securities Act has become effective or after a sale of such Warrant or
Warrant  Shares has been consummated pursuant to Rule 144 or Rule 144A under the
Securities  Act.  The  Company may place restrictive legends on the certificates
representing  the Warrant Shares issued upon exercise of the Warrants and impose
stop  transfer instructions with respect to the Warrant Shares beneficially held
by  Holder  until  the  end  of  such  period.

          (b)  Each  stock  certificate  representing Warrant Shares issued upon
exercise  or  exchange  of this Warrant shall bear the following legend, and any
other  legend deemed appropriate and in accordance with this Warrant, unless the
opinion  of  counsel  referred  to  in  Section  4(b)  states such legend is not
required:

     "THE  SECURITIES  EVIDENCED  BY  THIS  CERTIFICATE HAVE NOT BEEN REGISTERED
     UNDER  THE  SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS AND MAY NOT
     BE  TRANSFERRED  EXCEPT  UPON  DELIVERY TO THE CORPORATION OF AN OPINION OF
     COUNSEL  SATISFACTORY  IN  FORM AND SUBSTANCE TO IT THAT SUCH TRANSFER WILL
     NOT VIOLATE THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
     SECURITIES LAWS."

          5.     Reservation  of  Shares.  The Company shall at all times during
                 ------------------------
the  Exercise  Period  reserve  and  keep  available  out  of its authorized and
unissued  Common  Stock, solely for the purpose of providing for the exercise of
the rights to purchase all Warrant Shares granted pursuant to the Warrants, such
number  of  shares  of  Common  Stock as shall, from time to time, be sufficient
therefor.  The  Company  covenants that all shares of Common Stock issuable upon
exercise of this Warrant, upon receipt by the Company of the full Exercise Price
therefor,  and  all  shares  of  Common  Stock  issuable upon conversion of this
Warrant,  shall  be  validly  issued,  fully  paid,  non-assessable, and free of
preemptive  rights,

     6.     Adjustments.  The  number  of  shares  of Common Stock issuable upon
            ------------
exercise  of  the  Warrants  shall  be  adjusted  from  time to time as follows:

          (a) (i) In the event that the Company shall (A) pay a dividend or make
     a  distribution,  in  shares  of  Common  Stock,  on  any  class of capital
     stock  of the Company or any subsidiary which is not directly or indirectly
     wholly  owned by the Company, (B) split or subdivide its outstanding Common
     Stock  into  a greater number of shares, (C) combine its outstanding Common
     Stock into a smaller number of shares, then in each such case the number of
     shares issuable upon exercise of this Warrant shall be adjusted so that the
     Holder  of  a Warrant thereafter surrendered for exercise shall be entitled
     to receive the number of shares of Common Stock that such Holder would have
     owned  or  have been entitled to receive after the occurrence of any of the
     events described above had such Warrant been exercised immediately prior to
     the  occurrence  of such event. An adjustment made pursuant to this Section
     6(a)(i)  shall  become effective immediately after the close of business on
     the record date in the case of a dividend or distribution

                                        5
<PAGE>
     (except  as  provided  in  Section  6(e)  below) and shall become effective
     immediately  after  the close of business on the effective date in the case
     of such subdivision, split or combination, as the case may be.

               (ii) No adjustment in the Exercise Price shall be required unless
     the  adjustment  would  require  an  increase or decrease of at least 1% in
     the  Exercise Price then in effect; provided, however, that any adjustments
     that  by  reason  of this Section 6(a) are not required to be made shall be
     carried  forward  and  taken into account in any subsequent adjustment. All
     calculations  under  this Section 6(a) shall be made to the nearest cent or
     nearest 1/100th of a share.

               (iii) In the event that, at any time as a result of an adjustment
     made  pursuant  to  Sections  6(a)(i)  and  6(a)(ii)  above,  the Holder of
     any  Warrant  thereafter  surrendered for exercise shall become entitled to
     receive  any  shares  of the Company other than shares of the Common Stock,
     thereafter  the  number of such other shares so receivable upon exercise of
     any  such  Warrant  shall  be  subject to adjustment from time to time in a
     manner  and  on terms as nearly equivalent as practicable to the provisions
     with  respect  to  the  Common  Stock  contained  in  Sections 6(a) (i) and
     6(a)(ii)  above, and the other provisions of this Section 6(a) with respect
     to the Common Stock shall apply on like terms to any such other shares.

          (b) In case of any reclassification of the Common Stock (other than in
a  transaction  to  which  Section  6(a)(i)  applies),  any consolidation of the
Company  with,  or  merger  of the Company into, any other entity, any merger of
another entity into the Company (other than a merger that does not result in any
reclassification,  conversion, exchange or cancellation of outstanding shares of
Common  Stock  of the Company), any sale or transfer of all or substantially all
of  the  assets  of  the Company or any compulsory share exchange which does not
result  in  the  cashless  exercise  or cancellation of this Warrant pursuant to
Section  2(b),  pursuant  to  which share exchange the Common Stock is converted
into  other  securities,  cash or other property, then lawful provision shall be
made  as  part  of the terms of such transaction whereby the Holder of a Warrant
then outstanding shall have the right thereafter, during the period such Warrant
shall  be  exercisable, to exercise such Warrant only for the kind and amount of
securities,  cash  and  other  property  receivable  upon  the reclassification,
consolidation,  merger,  sale,  transfer  or  share  exchange by a holder of the
number  of shares of Common Stock of the Company into which a Warrant might have
been  able  to  exercise  for  immediately  prior  to  the  reclassification,
consolidation,  merger,  sale,  transfer  or  share  exchange assuming that such
holder  of Common Stock failed to exercise rights of election, if any, as to the
kind  or  amount  of  securities,  cash  or  other  property  receivable  upon
consummation  of  such  transaction subject to adjustment as provided in Section
6(a)  above  following the date of consummation of such transaction. The Company
shall  not  effect  any  such  reclassification,  consolidation,  merger,  sale,
transfer,  share exchange or other disposition unless prior to or simultaneously
with  the  consummation  thereof  the  successor  corporation (if other than the
Company)  resulting  from  such  consolidation  or  merger,  or  the corporation
purchasing  or  otherwise acquiring such assets or other appropriate corporation
or  entity  shall  assume,  by

                                        6
<PAGE>
written  instrument  executed  and  delivered  to  the Holder, the obligation to
deliver  to  the  Holder  upon its exercise of the Warrant such shares of stock,
securities or assets as, in accordance with the foregoing provisions, the Holder
may  be  entitled  to purchase and the other obligations under this Warrant. The
provisions  of  this  Section  6(b)  shall  similarly  apply  to  successive
reclassifications, consolidations, mergers, sales, transfers or share exchanges.

          (c)     If:
               (i)     the  Company shall take any action which would require an
                       adjustment pursuant to Section 6(a); or

               (ii)    the  Company  shall authorize the granting to the holders
                       of  its  Common  Stock  generally  of  rights,  warrants
                       or  options  to  subscribe  for or purchase any shares of
                       any  class  or  any other rights, warrants or options; or

               (iii)   there  shall  be  any  reclassification  or change of the
                       Common  Stock  (other  than  a  subdivision  or
                       combination  of  its outstanding Common Stock or a change
                       in par  value)  or any consolidation, merger or statutory
                       share  exchange  to  which the Company is a party and for
                       which  approval  of  any  stockholders  of the Company is
                       required,  or  the  sale  or  transfer  of  all  or
                       substantially  all  of  the  assets  of  the  Company; or

               (iv)    there  shall  be  a voluntary or involuntary dissolution,
                       liquidation or winding up of the Company;

then,  the  Company  shall  cause  to  be  filed with the transfer agent for the
Warrants and shall cause to be mailed to each Holder at such Holder's address as
shown  on  the  books  of  the  transfer  agent for the Warrants, as promptly as
possible,  but  at  least  30  days  prior  to  the  applicable date hereinafter
specified,  a  notice  stating (A) the date on which a record is to be taken for
the  purpose  of  such dividend, distribution or granting of rights, warrants or
options, or, if a record is not to be taken, the date as of which the holders of
Common  Stock of record to be entitled to such dividend, distribution or rights,
warrants  or  options  are  to  be  determined,  or  (B)  the date on which such
reclassification, change, consolidation, merger, statutory share exchange, sale,
transfer, dissolution, liquidation or winding-up is expected to become effective
or  occur,  and the date as of which it is expected that holders of Common Stock
of  record  shall  be  entitled  to  exchange  their  shares of Common Stock for
securities  or  other  property  deliverable upon such reclassification, change,
consolidation,  merger,  statutory  share exchange, sale, transfer, dissolution,
liquidation  or  winding  up.  Failure to give such notice or any defect therein
shall  not  affect the legality or validity of the proceedings described in this
Section  6(c).

                                        7
<PAGE>
          (d)     Whenever an adjustment is made as herein provided, the Company
shall promptly file with the transfer agent for the Warrants a certificate of an
officer  of  the  Company setting forth the adjustment and setting forth a brief
statement  of the facts requiring such adjustment and a computation thereof. The
Company  shall  promptly  cause a notice of such adjustment to be mailed to each
Holder.

          (e)     In  any case in which Section 6(a) provides that an adjustment
shall become effective immediately after a record date for an event and the date
fixed for such adjustment pursuant to Section 6(a) occurs after such record date
but  before the occurrence of such event, the Company may defer until the actual
occurrence  of  such  event  (i) issuing to the Holder of any Warrants exercised
after  such  record  date and before the occurrence of such event the additional
shares of Common Stock issuable upon such conversion by reason of the adjustment
required  by  such  event  over  and  above  the Common Stock issuable upon such
exercise before giving effect to such adjustment, and (ii) paying to such holder
any  amount  in  cash  in  lieu  of  any  fraction  pursuant  to  Section  6(g).

          (f)     Upon each adjustment of the Exercise Price, this Warrant shall
thereafter  evidence the right to purchase, at the adjusted Exercise Price, that
number of shares (calculated to the nearest thousandth) obtained by dividing (i)
the  product  obtained  by  multiplying  the  number  of shares purchasable upon
exercise  of  mis  Warrant  prior  to  adjustment of the number of shares by the
Exercise  Price in effect prior to adjustment of the Exercise Price, by (ii) the
Exercise  Price  in  effect  after  such  adjustment  of  the  Exercise  Price.

          (g)     The Company shall not be required to issue fractions of shares
of  Common Stock or other capital stock of the Company upon the exercise of this
Warrant.  If  any  fraction of a share would be issuable on the exercise of this
Warrant  (or  specified  portions  thereof),  the  Company  shall  purchase such
fraction  for an amount in cash equal to the same fraction of the Current Market
Price  of  such  share  of Common Stock on the date of exercise of this Warrant,

          (h)  In  case  the  Company shall take any action affecting the Common
Stock,  other  than actions described in this Section 6, which in the opinion of
the  Board  of Directors would materially adversely affect the exercise right of
the  Holder, the Exercise Price may be adjusted, to the extent permitted by law,
in  such  manner,  if  any,  and  at  such  time,  as the Board of Directors may
determine  to  be equitable in the circumstances;  provided, however, that in no
event  shall  the  Board  of  Directors  be  required  to  take any such action,

     7.     Transfer  Taxes. The issuance of any shares or other securities upon
            ----------------
the  exercise  of  this  Warrant,  and  the  delivery  of  certificates or other
instruments  representing such shares or other securities, shall be made without
charge  to  the  Holder for any tax or other charge in respect of such issuance.
The  Company shall not, however, be required to pay any tax which may be payable
in respect of any transfer involved in the issue and delivery of any certificate
in a name other than that of the Holder and the Company shall not be required to
issue  or  deliver  any  such certificate unless and until the person or persons
requesting  the  issue  thereof  shall

                                        8
<PAGE>
have paid to the Company the amount of such tax or shall have established to the
satisfaction  of  the  Company  that  such  tax  has  been  paid.

     8.     Loss or Mutilation of Warrant. Upon receipt of evidence satisfactory
            ------------------------------
to  the  Company  of  the loss, theft, destruction, or mutilation of any Warrant
(and  upon surrender of any Warrant if mutilated), and upon reimbursement of the
Company's  reasonable incidental expenses, the Company shall execute and deliver
to  the  Holder  thereof  a  new  Warrant of like date, tenor, and denomination.

     9.     No  Rights,  as  a  Stockholder. The Holder of any Warrant shall not
            --------------------------------
have,  solely  on  account  of  such  status, any rights of a stockholder of the
Company,  either  at  law  or  in  equity,  or  to  any  notice  of  meetings of
stockholders  or  of any other proceedings of the Company, except as provided in
this  Warrant.

     10.     Governing  Law.  This Warrant shall be construed in accordance with
             ---------------
the  laws  of the State of California applicable to contracts made and performed
within  such  State,  without  regard  to  principles  of  conflicts  of  law.

     11.     Beneficial  Ownership. The Company shall not effect the exercise of
             ----------------------
this  Warrant by any Holder, and no person who is a holder of this Warrant shall
have  the right to exercise this Warrant, to the extent that after giving effect
to  such  exercise,  such  person (together with such person's affiliates) would
beneficially  own in excess of 10% of the shares of the Common Stock outstanding
immediately  after giving effect to such exercise. For purposes of the foregoing
sentence,  the  aggregate number of shares of Common Stock beneficially owned by
such  person and its affiliates shall include, without limitation, the number of
shares  of  Common  Stock  issuable upon exercise of mis Warrant with respect to
which the determination of such sentence is being made, but shall exclude shares
of  Common  Stock  which  would  be issuable upon (a) exercise of the remaining,
unexercised  portion  of  this Warrant beneficially owned by such person and its
affiliates,  and  (b)  exercise  or conversion of the unexercised or unconverted
portion  of  any  other  securities  of  the Company beneficially owned by  such
person  and  its  affiliates  (including,  without  limitation,  any debentures,
convertible  notes  or  convertible  preferred  stock  or warrants) subject to a
limitation  on  conversion  or  exercise  analogous  to the limitation contained
herein.  Except  as  set  forth  in the preceding sentence, for purposes of this
Section  11, beneficial ownership shall be calculated in accordance with Section
13(d)  of  the Securities Exchange Act of 1934. as amended. For purposes of this
Warrant,  in  determining  the  number  of outstanding shares of Common Stock, a
Holder may rely on the number of outstanding shares of Common Stock as reflected
in  (i)  the  Company's  most recent Form 10-Q, Form 10-K or other public filing
with  the  Securities  and  Exchange Commission, as the case may be, (ii) a more
recent  public  announcement  by  the  Company, or (iii) any other notice by the
Company or its transfer agent setting forth the number of shares of Common Stock
outstanding.  For  any  reason  at any time, upon the written or oral request of
the  Holder  of this Warrant, the Company shall within two business days confirm
orally  and  in  writing  to  the Holder of this Warrant the number of shares of
Common  Stock then outstanding. In any case, the number of outstanding shares of
Common  Stock  shall  be

                                        9
<PAGE>
determined  after  giving  effect to the conversion or exercise of securities of
the  Company  by the Holder of this Warrant and its affiliates since the date as
of  which  such  number  of  outstanding shares of Common Stock was reported. In
effecting the exercise of this Warrant, the Company shall be entitled to rely on
a  representation  by the Holder of this Warrant as to the number of shares that
it  beneficially  owns  for  purposes  of  the above 10% limitation calculation.

                                       10
<PAGE>
Dated:  January  25,  2005

                                          NUTRACEA

                                          /s/ Patricia  McPeak
                                          ------------------------------------
                                          By:  Patricia  McPeak
                                          Title:  Chief  Executive  Officer

                          [SIGNATURE PAGE TO WARRANT]

<PAGE>
                               FORM OF ASSIGNMENT

(To  be executed by the registered holder if such holder desires to transfer the
attached  Warrant.)

          FOR  VALUE  RECEIVED,  ________________________ hereby sells, assigns,
and  transfers  unto  ____________  a  Warrant to purchase ___________ shares of
Common  Stock,  par  value  $[0.001]  per  share,  of NUTRACEA. (the "Company"),
together  with  all  right,  title,  and  interest  therein,  and  does  hereby
irrevocably  constitute  and appoint _________________ attorney to transfer such
Warrant on the books of the Company, with full power of substitution. Dated:

                                     Dated:
                                           ------------------------

                                     By:
                                        ---------------------------------
                                        Signature

     The  signature  on  the foregoing Assignment must correspond to the name as
written upon the face of this Warrant in every particular, without alteration or
enlargement or any change whatsoever,

<PAGE>
To:      NutraCea.
         ---------
         1261  Hawks'  Flight  Court
         ---------------------------
         El  Dorado  Hills. CA 95762
         ---------------------------
         Attention; Chief Executive Officer

                               NOTICE OF EXERCISE

     The  undersigned  hereby  exercises  his  or  its rights to purchase ______
Warrant Shares covered by the within Warrant and tenders payment herewith in the
amount  of  $  ______ by [tendering cash or delivering a certified check or bank
cashier's  check,  payable  to the order of the Company] [surrendering _________
shares  of  Common  Stock  received upon exercise of the attached Warrant, which
shares have a Current Market Price equal to such payment] in accordance with the
terms  thereof,  and requests that certificates for such securities be issued in
the name of. and delivered to:

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

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

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

                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and,  if  such  number  of  Warrant  Shares  shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the Warrant
Shares covered by the within Warrant be registered in the name of, and delivered
to,  the  undersigned  at  the  address  stated  below.
Dated:

                                     Dated:
                                           ------------------------

                                     By:
                                        ---------------------------------
                                        Print Name

                                     ------------------------------------
                                     Signature

Address:

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

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

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

<PAGE>
                                    EXHIBIT B

                        PROPRIETARY INFORMATION AGREEMENT

     NutraCea,  a  California  corporation, with principal address at 1261 Hawks
Flight  Court, El Dorado Hills, California 95762 ("Company") and Margie Adelman,
an individual with principal address at 4033 Bancroft Drive, El Dorado Hills, CA
95762 ("Employee") agree as of January 25, 2005 ("Effective Date") as follows:

1.     Employment  Employee  acknowledges  that  the obligations of Employee set
       ----------
forth  in  this  Agreement are a condition of Employee's employment with Company
and  are  agreed to by Employee in consideration of such employment. The parties
agree  that  this  Agreement  shall  not in any way affect the employer/employee
relationship  of  the  parties  other  than  as  specifically  set forth in this
Agreement,  including  without  limitation  the  ability of Company to terminate
Employee's  employment at will (unless otherwise provided in a written agreement
properly  signed  by  Company).

2.     Term.  The  term  of this Agreement shall commence on the date hereof and
       -----
shall  continue  for  the  duration  of  Employees  employment  with  Company.

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

4.     Inventions.  For  purposes  of this Agreement, "Invention" shall mean any
       -----------
new  machines, manufactures, methods, processes, uses, apparatuses, compositions
of  matter,  designs,  computer  programs  or software, or configurations of any
kind, discovered, conceived, developed, made, or produced or any improvements to
them,  and  shall  not be limited to the definition of an invention contained in
the  United  States  Patent  Laws.

     4.1.     Assignment  of  Inventions.   Employee  assigns  to Company all of
              ---------------------------
Employee's interest in all ideas and Inventions, whether patentable or not, made
or  conceived  by  Employee,

                                        1
<PAGE>
solely or jointly with any others, during the term of Employee's employment with
Company,  except  for  any  idea  or invention for which no equipment, supplies,
time,  facilities  or  trade secret information of Company was used and that was
developed  entirely  upon Employee's own time, and does not relate either to the
business  of Company or Company's actual or demonstrably anticipated research or
development.  All  ideas  and  inventions  hereby  assigned  are  referred to as
"Assigned  Inventions".  This  Agreement  does  not  apply to any invention that
qualifies  fully  under  the provisions of California Labor Code section 2870, a
copy of which is attached as Exhibit A. Employee agrees to promptly disclose all
Assigned Inventions in writing to Company, to assist Company in preparing patent
applications  and  assignments  for  those inventions and to vest title to those
Inventions  in  Company,  all  at Company's expense, but for no consideration to
Employee  in  addition  to  Employee's  salary  or  wages.  If  Company requires
Employee's  assistance  under  this  Section  after  termination  of  Employee's
employment,  Employee shall be compensated for Employee's time actually spent in
providing  that assistance at any hourly rate equivalent to Employee's salary or
wages  during  Employee's  last  period  of  employment  by  Company.

     4.2.     Prior  Inventions.   Employee has attached as Exhibit B, a list of
              ------------------
any  inventions  belonging  to Employee prior to employment with Company ("Prior
Inventions"),  that  relate  to the business of Company  or Company's  actual or
demonstrably  anticipated  research  or development and that are not assigned to
Company hereunder.   If no such list is attached, Employee represents that there
are  no  such  Prior  Inventions.   If in the course of employment with Company,
Employee  incorporates  into  a  Company  product,  process  or  machine a Prior
Invention  owned  by  Employee  or in which Employee has an interest, Company is
hereby  granted  and  shall  have  a  nonexclusive,  royalty-free,  irrevocable,
perpetual,  worldwide  and  assignable  license  to  make,  have  made,  modify,
sublicense,  use  and sell such Prior Invention as part of or in connection with
such  product  process  or  machine.

     4.3.     Records  of  Inventions.   Employee  agrees  to  keep and maintain
              ------------------------
adequate  and  current  written records of all Inventions of Employee during the
term  of  employment  with Company.  Such records shall be in the form of notes,
sketches,  drawings,  and any other format that may be specified by Company, and
shall  be  available  to  and  remain the sole property of Company at all times.

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

6.     Notification  of  New Employer.    Company shall have the right to notify
       -------------------------------
any future employers of Employee of Employee's rights and obligations under this
Agreement.

7.     Other  Agreements.   Employee  represents that the performance of all the
       ------------------
terms  of  this  Agreement  will  not breach any agreement to keep in confidence
proprietary  information  acquired

                                        2
<PAGE>
by  Employee  in  confidence  or  in  trust  prior  to  employment with Company.
Employee  has  not  and  shall  not  enter into any oral or written agreement in
conflict  with  this  Agreement.

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

9.     Miscellaneous.
       --------------

     9.1  Attorneys'  Fees: Prejudgment Interest Governing Laws. If the services
          ------------------------------------------------------
of  an  attorney  are  required by any party to secure the performance hereof or
otherwise  upon  the breach or default of another party to this agreement, or if
any  judicial  remedy  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. 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.

     9.2.     Amendment Waiver. 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.  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.

     9.3.     Entire  Agreement.    This  document  and  any  written employment
              ------------------
agreement  between  Employee and Company constitute the entire agreement between
the parties regarding the  subject  matter,  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.

     9.4.     Succession.  Subject to the provisions otherwise contained in this
              -----------
Agreement,  this  Agreement  shall inure to the benefit of and be binding on the
heirs,  successors  and  assigns  of  the  respective  parties  hereto.

                                        3
<PAGE>
     9.5.     Severability.  If  any  provision  of  this  Agreement  is held by
              -------------
a  court of competent jurisdiction to be invalid or unenforceable, the remainder
of  the  Agreement which can be given effect without the invalid provision shall
continue  in  full  force  and  effect  and  shall  in  no  way  be  impaired or
invalidated.

     9.6     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.

Dated:  January  25,  2005

                                          NUTRACEA

                                          /s/ Patricia  McPeak
                                          ------------------------------------
                                          By:  Patricia  McPeak
                                          Title:  Chief  Executive  Officer

Dated:  January  25,  2005                MARGIE ADELMAN

                                          /s/ Margie Adelman
                                          ------------------------------------

                                        4
<PAGE>
                                    EXHIBIT A

                       California Labor Code Section 2870

     (a)     Any  provision  in  an  employment agreement which provides that an
employee  shall  assign,  or  offer  to  assign,  any of his or her rights in an
invention  to  his  or  her  employer  shall  not apply to an invention that the
employee  developed entirely on his or her own time without using the employer's
equipment,  supplies,  facilities,  or trade secret information except for those
inventions  that  either:

     (1)     Relate  at  the  time of conception or reduction to practice of the
invention  to  the  employer's  business,  or actual or demonstrably anticipated
research  or  development  of  the  employer,  or

     (2)     Result  from  any  work  performed  by  the  employee for employer.

     (b)     To  the  extent  a provision in an employment agreement purports to
require  an  employee  to  assign  an  invention  otherwise  excluded from being
required  to  be  assigned  under  subdivision (a), the provision is against the
public  policy  of  this  state  and  is  unenforceable.

                                        5
<PAGE>
                                    EXHIBIT B

                                PRIOR INVENTIONS

                                        6EXHIBIT 10.6

                                LICENSE AGREEMENT

     This Agreement is made as of the 15 day of January 2002, between The RiceX
                                      --
Company, a Delaware corporation located at 1241 Hawk's Flight Court, El Dorado
Hills, California 95762 (hereinafter called "Licensor"), and NutraStar
Technologies Incorporated, a Nevada corporation located at 1261 Hawk's Flight
Court, El Dorado Hills, California 95762 (hereinafter called "Licensee").

                                    RECITALS

     A.     Licensor and Licensee are parties to an exclusive distribution
agreement (the "Distribution Agreement") dated as of December 12, 2001 and agree
that this license agreement (the "License Agreement") is entered into pursuant
to the Distribution Agreement and that the terms of the Distribution Agreement
are hereby incorporated by reference into this License Agreement.

     B.     Licensor is the owner of the trademarks as defined below and has the
exclusive right to license such trademarks.

     C.     Licensor is the owner of the patents as defined below and has the
exclusive right to license such patents.

     D.     Both parties desire that Licensor grant and Licensee acquire a
license in, to and under Licensor's right, title and interest in and to such
trademarks and patents upon the following terms and conditions, which terms and
conditions shall govern the use by Licensee of such trademarks and patents.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and undertakings stated in the Distribution Agreement and hereinafter
set forth, and the payment to Licensor of the royalties, fees, or other payments
set forth in the Distribution Agreement and other good and valuable
consideration the sufficiency of which the parties acknowledge, it is agreed
between the parties as follows:

1.  Definitions.  Capitalized terms shall have the meaning set forth below.
    -----------

1.1     Combined Products.  The term "Combined Products" shall mean any
        ------------------
material, composition, ingredient, or product that is the result of Licensee
adding to, combining, changing, modifying or otherwise utilizing any of the
Products (with the exception of the sale, offer for sale, marketing, or
distribution of the Products by themselves) with Licensee's own materials,
compositions, ingredients, or other products.

1.2     Confidential Information.  The term "Confidential Information" shall
        ------------------------
mean any and all proprietary or confidential information of Licensor or Licensee
which may be exchanged between the parties at any time and from time to time
during the term of this License Agreement or the Distribution Agreement and

                                        1
<PAGE>
which the parties have either marked as "Confidential" or conveyed under the
express understanding that such information is confidential.  Information shall
not be considered confidential to the extent that it:

a.     Is publicly disclosed through no fault of any party hereto, either before
or after it becomes known to the receiving party; or

b.     Was known to the receiving party prior to the Effective Date set forth in
the Distribution Agreement, which knowledge was acquired independently and not
from the disclosing party (or such party's employees), to the extent that the
receiving party can show documentary evidence of such knowledge; or

c.     Is subsequently disclosed to the receiving party in good faith by a third
party who has a right to make such disclosure; or

d.      Has been published by a third party as a matter of right.

1.3     Field.  The term "Field" shall mean the nutraceutical and human market.
        -----

1.4     Intellectual Property.  The term "Intellectual Property" shall mean the
        ---------------------
Trademarks, Patents, Patent Rights, and Inventions collectively.

1.5     Inventions  The term "Inventions" shall mean all proprietary technical
        ----------
information, software, trade secrets, developments, discoveries, know-how,
methods, techniques, formulae, processes and other proprietary ideas, whether or
not patentable or copyrightable, that are conceived of, discovered, developed or
reduced to practice, in whole or in part, by or for Licensor related to the
Products or Combined Products.

1.6     Patents.  The term "Patents" shall mean the patents identified in
        -------
Exhibit A attached hereto and as set forth in Section 4(d) of the Distribution
Agreement.

1.7     Patent Rights.  The term "Patent Rights" shall mean all of Licensor's
        -------------
rights, title and interest arising out of or resulting from (i) any and all U.S.
and foreign patent applications and patents covering the Inventions, (ii) the
patents and patent applications listed on Exhibit A attached hereto, (iii) all
claims of continuations-in-part directed solely to subject matter specifically
described in the Inventions, and (iv) divisionals, continuations, reissues,
reexaminations, renewals and extensions of any patent or application set forth
in (i)-(iii) above, so long as said patents have not been held invalid and/or
unenforceable by a court of competent jurisdiction from which there is no appeal
or, if appealable, from which no appeal has been taken.  Exhibit A shall be
amended promptly by mutual agreement of the parties as any additional Patent
Rights arise.

1.8     Products.  For purposes of this License Agreement, the term "Products"
        --------
shall collectively mean rice soluble and rice bran fiber concentrate, the
"Products" pursuant to the Distribution Agreement, and all forms of the
stabilized rice bran referred to in Section 2(a) and Exhibit A-1 of the
Distribution Agreement.

                                        2
<PAGE>
1.9     Term.  The "Term" of this License Agreement and the licenses granted
        ----
hereunder shall be for the same period as the term of the Distribution
Agreement.

1.10    Territory.  As set forth in Section 6 of the Distribution Agreement,
        ----------
the term "Territory" shall mean the United States of America and all of its
territories and any additional countries or regions of countries that the
parties mutually agree upon in writing.

1.11    Trademarks.  As set forth in Section 4(c) of the Distribution
        ----------
Agreement, the term "Trademarks" shall mean the "MIRACHOL(R) ," "MAXE(R) ," and
"RICEX(R) " trademarks collectively.

2.      Trademark License Grant. Licensor hereby grants and agrees to grant to
        -----------------------
Licensee, (i) the exclusive license, including the right to sublicense pursuant
to the terms of Section 4.2 hereof, in the Territory to use the trademarks
"MIRACHOL(R)" and "MAXE(R)" in the Territory and (ii) the non-exclusive license
to use the "RICEX(R)" trademark in the Field during the Term. Licensee agrees
that the Trademarks shall be used and displayed only in such form and manner as
shall be specifically approved by Licensor.

3.      Patent License Grant.  Licensor hereby grants and agrees to grant to
        --------------------
Licensee the exclusive license, including the right to sublicense pursuant to
the terms of Section 4.3 hereof, in the Territory and in the Field, in, to and
under all of Licensor's right, title and interest to and under the Patents and
Patent Rights, to import, to use, to offer for sale, and to sell, modify, have
modified, market, and distribute directly or indirectly and through multiple
channels of distribution, the Products and Combined Products and to have those
rights exercised on its behalf, during the Term and subject to the provisions of
this License Agreement.

4.      License Terms and Conditions.
        ----------------------------

4.1     Display of the Trademarks.  Licensee is hereby required to imprint the
        -------------------------
RICEX trademark brand on all Products or Combined Products sold by Licensee
pursuant to the Distribution Agreement.  In addition, wherever and whenever
possible and applicable, Licensee is hereby required to affix the MIRACHOL and
MAXE trademarks on Products or Combined Products.  Licensee is hereby required
to imprint the applicable Trademarks to or on packaging, advertising,
promotional, and all other materials sold, used, or distributed in connection
with the Products or Combined Products.  Licensee hereby agrees to limit its use
of the Trademarks to the Territory and to the Products or Combined Products,
packaging, advertising, promotional, and other materials related thereto, all in
accordance with the foregoing and according to quality standards approved by
Licensor as set forth in Section 4.7 hereof.

4.2     Sublicense of Trademarks.  Licensee's rights and obligations with
        ------------------------
respect to the Trademarks under this Agreement may not be sublicensed by
Licensee without the prior written consent of Licensor, which consent shall not

                                        3
<PAGE>
be unreasonably withheld.  Upon prior written consent of Licensor, Licensee may
grant a sublicense only for the performance of any acts to be performed by
Licensee that are contemplated under this Agreement.  Any such sublicense shall
be subject to comparable applicable restrictions, exceptions, quality control,
termination, confidentiality, and other provisions contained in this License
Agreement, and provided further, that Licensee shall remain secondarily liable
to Licensor for the fulfillment of all of Licensee's obligations under this
License Agreement.

4.3     Sublicense of Patents.  In the event Licensor is unable to provide
        ----------------------
Licensee with the quantity of Products required by Licensee pursuant to the
Distribution Agreement and Licensor cannot cure such deficiency within sixty
(60) days notice of such deficiency from Licensee at any time during this
License Agreement, Licensor hereby grants to Licensee the right to grant a
sublicense in and to the Patents, Patent Rights, and Inventions to make or have
Products made until such time as the deficiency is cured by Licensor.  Any such
sublicense shall be subject to comparable applicable restrictions, exceptions,
quality control, termination, confidentiality, and other provisions contained in
this License Agreement, and provided further, that Licensee shall remain
secondarily liable to Licensor for the fulfillment of all of Licensee's
obligations under this License Agreement.

4.4     Title.  All rights in the Intellectual Property other than those
        -----
specifically granted herein are reserved to Licensor for its own use and
benefit.  Licensee acknowledges that it shall not acquire any rights of
whatsoever nature in the Intellectual Property as a result of Licensee's use
thereof, and that all use of the Intellectual Property by Licensee shall inure
to the benefit of Licensor.  Licensor agrees that it shall not, directly or
indirectly, during the term of this License Agreement or thereafter, attack the
ownership by Licensor of the Intellectual Property or the validity thereof or
attack the validity of the license herein granted to it.  Licensee recognizes
that the Products are not sold but, rather licensed, by Licensor to Licensee and
that the price indicated for the Products in the Distribution Agreement is a
license fee and not a purchase price.  All right, title, and interest in and to
the Products and other intellectual property rights related thereto at all times
remain the sole and exclusive property of Licensor.  Any modifications, updates,
improvements, or adaptations to the Intellectual Property, no matter by whom
made or paid for, shall remain the property of Licensor.  Upon Licensor's
request, Licensee shall promptly execute any documents deemed necessary or
appropriate by Licensor to confirm said ownership of such modifications,
updates, improvements, or adaptations to the Intellectual Property in Licensor.
Licensee shall not use or authorize the use of the Intellectual Property in any
manner other than as specifically permitted under this License Agreement.

4.5     Unauthorized Use.  The license granted herein is granted solely to
        ----------------
Licensee and is not, by implication or otherwise, granted to any partner,
subsidiary, affiliate, or sublicensee (except as otherwise set forth herein) of
Licensee.  Licensee shall not copy, distribute, reproduce, use, or allow access
to the Intellectual Property except as explicitly permitted under this License
Agreement and will not modify, adapt, prepare derivative works from, decompile,
reverse engineer, disassemble or otherwise attempt to use the Intellectual
Property in any manner not specifically authorized hereunder.

                                        4
<PAGE>
4.6     Licensee's Diligence.  Licensee hereby acknowledges that Licensee shall
        --------------------
use it's best efforts to develop and manufacture the Products and Combined
Products and that Licensee shall use it's best efforts to sell, offer for sale,
distribute, import, market, advertise, and otherwise exploit the Products and
Combined Products.  In addition, Licensee hereby acknowledges that it shall not
at any time during the Term of this License Agreement sell, offer for sale,
distribute, import, market, advertise, or otherwise exploit any material or
product that competes, either directly or indirectly, with any Products or
Combined Products hereunder.  At anytime during the Term, in the event that
Licensee fails to perform its obligations under this Section 4.6 in the sole
discretion of Licensor for a period of ninety (90) consecutive days, Licensor
shall have the right to terminate this License Agreement with immediate effect
upon written notice to Licensee.

4.7     Quality Control.  Licensor or its representatives shall have the right,
        ---------------
at all reasonable times, to inspect the Combined Products and any marketing,
advertising, packaging, or other materials related thereto (collectively the
"Goods"). Licensee agrees to establish quality standards and shall submit such
standards to Licensor for Licensor's approval.  Licensee agrees to: comply with
those quality standards approved by Licensor and maintain a level of quality in
the Goods so that such Goods as of the date of sale or other distribution shall
be of good and merchantable quality and fit for the purpose for which the Goods
are sold or otherwise distributed and will meet all applicable federal, state,
local, and international laws, rules and regulations; to remedy such quality
deficiencies as Licensor or its representatives may find and bring to Licensee's
attention; and upon request by Licensor, to provide samples of the Trademarks in
use to assist Licensor in maintaining quality control.  If Licensor reasonable
determines that such Goods are not of the level of quality required by this
License Agreement, Licensee shall make such modifications to the use of the
Intellectual Property as reasonably requested by Licensor.  In the event that
Licensee fails to make such modifications for a period of sixty (60) days,
Licensor may terminate this License Agreement pursuant to Section 9.2 hereof.

4.8     Foreign Registration.  Licensee agrees to register this License
        --------------------
Agreement with any applicable foreign governmental agency that requires such
registration, and Licensee shall pay all costs and legal fees in connection
therewith, and such registration shall not be considered a violation of Section
5 hereof.  In addition, Licensee shall be responsible for satisfying all foreign
laws affecting this License Agreement and the sale of Products, Combined
Products, or other materials associated therewith which Licensee sells outside
of the United States.

5.      Intellectual Property Administration.
        ------------------------------------

5.1     Intellectual Property Prosecution and Maintenance.  Licensor shall have
        -------------------------------------------------
responsibility for and prepare all application filings, prosecution documents,

                                        5
<PAGE>
provide all maintenance and Licensee shall pay all fees and expenses, including
legal fees, relating to the Intellectual Property.  Licensee shall provide
Licensor with all information in its possession necessary or useful for the
filing and prosecution of such Intellectual Property and shall cooperate fully
with Licensor so that Licensor may establish and maintain such rights.
Attorneys chosen by Licensor shall handle all filings and prosecutions on behalf
of Licensor.  In the event Licensor declines to prepare necessary documents and
fees to apply for, prosecute or maintain any of the Intellectual Property,
Licensee shall have the right to pursue the same at Licensee's expense.
Licensor shall give sufficient and timely notice to Licensee of its decision not
to prepare the necessary documents and fees to apply for, prosecute or maintain
any Intellectual Property so as to permit Licensee to apply for, prosecute and
maintain such Intellectual Property.  In such event, Licensor shall provide
Licensee with all information necessary or useful for the filing and prosecution
of such Intellectual Property and shall cooperate fully with Licensee so that
Licensee may establish and maintain such rights.

5.2     Power of Attorney.  In the event that either party is unable to provide
        -----------------
the necessary cooperation required to file, maintain, or prosecute the
Intellectual Property pursuant to Section 5.1 hereof, each party hereby
irrevocably designates and appoints the other party and its officers and agents
as it's agent and attorney in fact, to act for and in it's behalf and stead to
execute and file any such applications and documents, and to do all other
lawfully permitted acts to further the prosecution and issuance of letters
patent, copyright, or trademark registrations or transfers thereof with the same
legal force and effect as if executed by the other party.

5.3     Intellectual Property Marking.  To the extent required by applicable
        -----------------------------
law, Licensee shall mark or require its sublicensees or other third parties to
mark all Products or Combined Products or their containers in accordance with
the applicable marking laws affecting the Intellectual Property.

5.4     Foreign Registration.  Licensee agrees to register this License
        --------------------
Agreement with any applicable foreign governmental agency that requires such
registration, and Licensee shall pay all costs and legal fees in connection
therewith, and such registration shall not be considered a violation of Section
5.1.  In addition, Licensee shall be responsible for satisfying all foreign laws
affecting its sale of Products or Combined Products outside of the United
States.

6.     Infringement Actions.
       --------------------

6.1     Prosecution and Defense of Infringements. Each party shall promptly
        ----------------------------------------
provide written notice to the other of any suspected infringement of any claims
in the Intellectual Property, or misuse, misappropriation, theft or breach of
confidence of other proprietary rights in the Intellectual Property by a third
party of which it is aware.  Licensor shall have the right, but not the
obligation, to prosecute any and all infringements of any Intellectual Property
and to defend all charges of infringement arising as a result of the exercise of
Licensor's rights by Licensee, its sublicensees, or other third parties.
Licensor may enter into settlements, stipulated judgments or other arrangements
respecting such infringement, at its own expense, but only with the prior
written consent of Licensee, which consent shall not be unreasonably withheld.
Licensee shall permit

                                        6
<PAGE>
any action to be brought in its name if required by law, and Licensor shall hold
Licensee harmless from any costs, expenses or liability respecting all such
infringements or charges of infringement. Licensee agrees to provide reasonable
assistance that Licensor may require in any litigation arising in accordance
with the provisions of this License Agreement. In the event Licensor fails to
prosecute any such infringement within a period of ninety (90) days after
receiving notice or otherwise having knowledge of such infringement, then
Licensee shall have the right to prosecute such infringement on its own behalf.

6.2     Allocation of Recovery. Any damages or other recovery from an
        ----------------------
infringement action undertaken by either party pursuant to Section 6.1:  (i)
shall first be used to reimburse the parties for the costs and expenses incurred
in such action, and shall thereafter be allocated between the parties as
follows,  (ii) shall be allocated pro rata to the parties in an amount equal to
the damages and expenses actually incurred by each,  (iii) then any remainder
amount shall be remitted to the party undertaking the infringement action.

7.      Warranties, Indemnifications, and Limitations of Liability.
        ----------------------------------------------------------

7.1     Authority.  Each party warrants and represents to the other party that
        ---------
it has the requisite authority, ability, and capabilities to enter into this
License Agreement and to perform all of its obligations thereunder.

7.2     Licensee Commercialization.  Licensee warrants and represents to
        --------------------------
Licensor that Licensee has sufficient capacity to manufacture the Combined
Products and sell, offer for sale, market, advertise, distribute, and import the
Products and Combined Products, and otherwise fulfill its obligations under this
License Agreement with respect to the exploitation and commercialization of the
Products and Combined Products.

7.3     Manufacturing Standard.  Each party represents and warrants that the
        ----------------------
products it manufactures shall be manufactured in a workmanlike manner, shall
comply with then current industry standards and will be free from defects in
workmanship.

7.4     Consents and No Pending Matters.  Each party hereby represent and
        -------------------------------
warrants that (i) it has the full right, power, and authority to enter into and
be bound by all of the terms and conditions of this License Agreement, and to
carry out all of it's obligations under this License Agreement, without the
approval or consent of any other person or entity, (ii) the entering into of
this License Agreement, and the carrying out of that party's obligations under
this License Agreement is not prohibited, restricted or otherwise limited by any
contract, agreement or understanding entered into by that party, or by which
that party is bound, with any other person or any governmental authority or
entity, (iii) there is no contract, agreement, understand or judgment entered
into by a party, or by which that party is bound, which if enforced, terminated,
or modified, would be in derogation of, contrary to, or adversely affect any of
the rights acquired or to be acquired hereunder by either party, and (iv) there
is no action, suit, proceeding, or investigation pending or currently threatened
against either party which,

                                        7
<PAGE>
if adversely determined, would restrict or limit that party's right to enter
into and be bound by this License Agreement.

7.5    Insurance and Indemnifications.
       ------------------------------

     (a) Each of the parties shall be responsible for its own errors and
omissions and shall indemnify, defend, and hold harmless the other party and the
other party's shareholders, directors, officers, employees, agents, affiliates,
successors, sublicensees, and assigns (collectively, the "Indemnitees"), against
and from all claims and losses incurred, suffered by, or imposed upon the
Indemnitees and arising out of the indemnifying party's own activities, acts or
omissions, except to the extent due to the negligent acts or omissions, willful
misconduct, recklessness of, or violation of applicable laws by, the
Indemnitees.  In furtherance thereof, each party shall defend, indemnify, and
hold harmless the other and its shareholders, directors, officers, employees,
agents, affiliates, successors, and assigns (collectively, the "Indemnitees"),
against and from all claims and losses incurred, suffered by, or imposed upon
the Indemnitees to the extent arising out of any breach of any of the other
party's covenants, representations and warranties under this Agreement.

     (b) Licensee shall obtain and maintain a product liability insurance policy
with coverage in an amount equal to Five Million Dollars ($5,000,000) naming
Licensor as an additional insured.

     (c) Licensee agrees to defend, indemnify, and hold Licensor harmless
against any loss, liability, damage, cost, or expense (including reasonable
legal costs and fees) arising out of any claims or suits, whatever their nature
and however arising, which may be brought or made against Licensor by reason of
or arising from (i) any breach of any term, condition, obligation,
representation, or warranty of this Agreement by Licensee; or (ii) any
allegation of product liability or personal injury arising from or relating to
the Combined Products or other products or materials of Licensee that differ
from the Products in the form and manner provided by Licensor to Licensee or
arising from the development, testing, manufacture, use, sale, offer for sale,
importation, exportation, storage, handling, transportation, distribution or any
other disposition of any Product or Combined Product and other materials related
thereto conducted by Licensee.  In no event may Licensee enter into any third
party settlement agreements which would in any manner whatsoever affect the
right of, or bind, Licensor in any manner to said third party, without the prior
written consent of Licensor.

7.6     Limited Warranty.  Licensor hereby represents and warrants that it has
        ----------------
full right and power to enter into this License Agreement.  LICENSOR MAKES NO
OTHER WARRANTIES OTHER THAT THOSE EXPRESSLY PROVIDED FOR HEREIN. LICENSOR MAKES
NO EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE AS TO LICENSOR'S INTELLECTUAL PROPERTY RIGHTS OR ANY PRODUCT.  LICENSOR
MAKES NO WARRANTY OR REPRESENTATION AS TO THE VALIDITY OR SCOPE OF LICENSOR'S
INTELLECTUAL PROPERTY RIGHTS, RELATED TECHNOLOGY,

                                        8
<PAGE>
OR THAT ANY PRODUCT WILL BE FREE FROM AN INFRINGEMENT ON PATENTS OR OTHER
INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

7.7     Merchantability.  TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW,
        ---------------
LICENSOR DISCLAIMS ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING
BUT NOT LIMITED TO IMPLIED WARRANTIES OF TITLE, NONINFRINGEMENT, MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE PRODUCTS.

7.8     Limits on Liability.  Licensor's liability for damages of any kind is
        -------------------
limited to any amounts paid to Licensor by Licensee under the Distribution
Agreement during the year in which the damages occur.

IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INCIDENTAL, SPECIAL, CONSEQUENTIAL,
OR PUNITIVE DAMAGES, INCLUDING, BUT NOT LIMITED TO LOST REVENUE OR PROFITS, IN
CONNECTION WITH THIS AGREEMENT OR ITS BREACH, OR ARISING FROM THE RELATIONSHIP
OF THE PARTIES OR THE CONDUCT OF BUSINESS BETWEEN THEM, EVEN IF EITHER PARTY WAS
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

8.      Confidentiality.
        ---------------

8.1     Treatment of Confidential Information.  The parties agree that during
        -------------------------------------
the Term and so long as the Confidential Information under this License
Agreement remains confidential after this License Agreement terminates, a party
receiving Confidential Information of the other party will (i) maintain in
confidence such Confidential Information to the same extent such party maintains
its own proprietary industrial information, and in any event not less than
reasonable care, (ii) not disclose such Confidential Information to any third
party without prior written consent of the other party, and (iii) not use such
Confidential Information for any purpose except those permitted by this License
Agreement.  For the purposes of this License Agreement, Confidential Information
is deemed to include (but not be limited to) all unpatented Licensor Inventions,
or Licensee technology that have been disclosed to Licensor or Licensee.
Notwithstanding the foregoing, it shall not be a violation of this Section 8.1
for a receiving party to disclose Confidential Information that is required to
be disclosed by order of the US Food and Drug Administration or similar
authority or a court of competent jurisdiction, which order is final and cannot
be appealed; provided that the parties will coordinate their best efforts to
obtain confidential treatment of such information by the agency or court and
provided that the parties will coordinate their best efforts to obtain
confidential treatment of such information by the agency or court, and that the
receiving party gives prior written notice to the disclosing party of the
proposed disclosure and cooperates fully with the disclosing party to minimize
the scope of any such required disclosure, to the extent possible and in
accordance with applicable law.

8.2     Publicity.  Except as otherwise provided herein or required by law, no
        ---------
party shall

                                       9
<PAGE>
originate any publication, news release or other public announcement, written or
oral, whether in the public press, stockholders' reports, or otherwise, relating
to this License Agreement or to any sublicense 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.

9.      Termination.
        -----------

9.1     Termination Upon Default.  The failure of a party to perform any
        ------------------------
material obligation required of it to be performed hereunder, and the failure to
cure such failure within sixty (60) days after receipt of notice from the other
party specifying in reasonable detail the nature of such material breach shall
constitute an event of default hereunder.  Upon the occurrence of such material
default, the non-defaulting party may deliver to the defaulting party written
notice of intent to terminate, such termination to be effective upon the date
set forth in such notice, subject to the provisions of Section 10.10 hereof.
The termination rights hereunder shall be in addition to and not in substitution
for any other remedies that may be available to the non-defaulting party.
Termination pursuant to this Section 9.1 shall not relieve the defaulting party
from liability and damages to the other party for breach of this License
Agreement.  Waiver by either party of a single default or a succession of
defaults shall not deprive such party of any right to terminate this License
Agreement arising by reason of any subsequent default.

9.2     Termination Upon Bankruptcy or Insolvency.  This License Agreement may
        -----------------------------------------
be terminated by Licensor giving written notice of termination to Licensee upon
the filing of bankruptcy or bankruptcy of Licensee or the appointment of a
receiver of any of Licensee's assets, or the making by Licensee of any
assignment for the benefit of creditors, or the institution of any proceedings
against Licensee under any bankruptcy law, provided that Licensee has not
obtained a dismissal of such action or any related proceedings within sixty (60)
days of the commencement thereof.

9.3     Rights Upon Expiration.  Neither party shall have any further rights or
        ----------------------
obligations upon the expiration of this License Agreement upon its regularly
scheduled expiration date with respect to this License Agreement, other than set
forth otherwise herein.

9.4     Rights Upon Termination.  Upon termination, Licensee shall have no
        -----------------------
further right to develop, manufacture, distribute, market, or otherwise
commercialize or exploit any Product or Combined Product, or to otherwise use
any of the Patent Rights, Trademarks, or Inventions not otherwise includable
therein.  Upon termination, Licensee shall promptly return all Confidential
Information, materials, samples, documents, information, and other materials
that embody or disclose the Trademarks, Patent Rights, or Inventions not
otherwise includable therein.  Any termination shall not relieve either party
from any obligations accrued to the date of such termination.

9.5     Effect of Expiration or Termination.  The following provisions shall
        -----------------------------------
survive the expiration or termination of this License Agreement: Sections 4.4,
5, 6, 7, 8, and 10.

                                       10
<PAGE>
10.      General Provisions.
         ------------------

10.1     Contractual Conflict.  In the event a conflict exists between the terms
         --------------------
of the Distribution Agreement and the terms of this License Agreement, the terms
of the Distribution Agreement shall control, except when the conflict is
directly related to the use and restrictions on use with respect to the
Intellectual Property, in that event, the terms of this License Agreement shall
govern.

10.2     Governmental Approval.  Licensee shall obtain all necessary
         ---------------------
governmental approvals for the manufacture, use, sale, offer for sale,
distribution, import, marketing, advertising and other exploitation of the
Products and Combined Products.

10.3     Independent Contractors.  The relationship between the parties is that
         -----------------------
of independent contractors.  Licensor and Licensee are not joint venturers,
partners, principal and agent, master and servant, employer or employee, and
have no other relationship other than independent contracting parties.  Licensor
and Licensee shall have no power to bind or obligate each other in any manner,
other than as is expressly set forth in this License Agreement.

10.4     Arbitration.  All disputes, controversies, and claims arising out of or
         -----------
related to this License Agreement (except disputes, controversies, and claims
relating to or affecting Licensor's ownership or the validity of any
Intellectual Property or any registration thereof) shall be settled and
determined by arbitration in Sacramento, California, U.S.A. before a single
arbitrator in accordance with and pursuant to the then existing International
Arbitration Rules of the American Arbitration Association incorporating the
rules of discovery of the State of California.  The arbitrator may award
reasonable attorney's fees and expenses to the prevailing party of any
arbitration.  The parties specifically waive all rights to any claims for
punitive damages against each other.

10.5     Entire Agreement; Modification.  Any rights and obligations arising
         ------------------------------
under this License Agreement may not be assigned by Licensee without the prior
written consent of Licensor.  This License Agreement sets forth the entire
agreement and understanding between the parties as to the subject matter hereof
and supercedes all prior or contemporaneous agreements or understandings as
between the parties relating to their subject matter.  There shall be no
amendments or modifications to this License Agreement, except by a written
document, which is signed by both parties.

10.6     Headings.  The headings for each article and section in this License
         --------
Agreement have been inserted for convenience of reference only and are not
intended to limit or expand on the meaning of the language contained in the
particular article or section.

10.7     Severability.  Should any one or more of the provisions of this License
         ------------
Agreement be held invalid or unenforceable by a court of competent jurisdiction,
it shall be considered severed from this License Agreement and shall not serve
to invalidate the remaining provisions thereof.

                                       11
<PAGE>
10.8     No Waiver.  Any delay in enforcing a party's rights under this License
         ---------
Agreement or any waiver as to a particular default or other matter shall not
constitute a waiver of such party's rights to the future enforcement of its
rights under this License Agreement, excepting only as to an express written and
signed waiver signed by the party against whom such waiver is being enforced as
to a particular matter for a particular period of time.

10.9     Name.  Whenever there has been an assignment or a sublicense by
         ----
Licensee as permitted by this License Agreement, the reference to "Licensee" as
used in this License Agreement shall also include and refer to, if appropriate,
such assignee or sublicensee.

10.10    Notices.  Any notices required by this License Agreement shall be in
         -------
writing, shall specifically refer to this License Agreement and shall be sent by
registered or certified airmail, postage prepaid, or by telefax, telex or cable,
charges prepaid, or by overnight courier, postage prepaid and shall be forwarded
to the respective addresses set forth below unless subsequently changed by
written notice to the other party:

For Licensor:

The RiceX Company
1241 Hawk's Flight Court
El Dorado Hills, California 95762
Attn: Chief Executive Officer
Phone No. 916 933-3000
Fax No. 916 933-3232

and a copy to:

Crosby, Heafey, Roach & May
1901 Avenue of the Stars, Suite 700
Los Angeles, California 90067
Attention: Richard W. Lasater II, Esq.
Phone No. 310 734-5200
Fax No.: 310 734-5299

For Licensee:

NutraStar Technologies Incorporated
1261 Hawk's Flight Court
El Dorado Hills, California 95762
Attn: Chief Executive Officer

                                       12
<PAGE>
Phone No. 916 933-7000
Fax No. 916 933-7001

Notice shall be deemed delivered upon the earlier of (i) when received, (ii)
three (3) days after deposit into the mail, or (iii) the date notice is sent via
telefax, telex or cable, (iv) the day immediately following delivery to
overnight courier (except Sunday and holidays).

10.11     Compliance with U.S. Laws.  Nothing contained in this License
          -------------------------
Agreement shall require or permit Licensor or Licensee to do any act
inconsistent with the requirements of any United States law, regulation or
executive order as the same may be in effect from time to time.

10.12     Force Majeure.  Neither party shall be held responsible for any delay
          -------------
or failure in performance hereunder caused by strikes, embargoes, unexpected
government requirements, civil or military authorities, acts of God, earthquake,
or by the public enemy or other causes reasonably beyond such party's control
and without such party's fault or negligence.  In the event that a force majeure
event as described in this Section 10.12 subsists and remains unresolved for
more than ninety (90) days from the date such event arose, the party not
affected or delayed by the event shall have the right to terminate this License
Agreement upon thirty (30) days written notice to the affected party.

10.13     Governing Law.  This License Agreement shall be construed and enforced
          -------------
in accordance with the laws of the State of California without regard to the
conflicts of laws principles thereof.

IN WITNESS WHEREOF, the parties have executed this License Agreement by their
duly authorized representatives as of the date set forth above.

LICENSOR:                            LICENSEE:

THE RICEX COMPANY                    NUTRASTAR TECHNOLOGIES INCORPORATED
INCORPORATED

By: /s/                              By:  /s/ Patricia McPeak
    ----------------------------          -----------------------------

Title:  CFO                          Title:
      --------------------------            ---------------------------

Date:  2/7/02                        Date:
      --------------------------            ---------------------------

                                       13
<PAGE>
                                    SCHEDULE A

Patents:

     Patent No. 6,126,943 "A Method for Treating Hypercholesterolmia,
     Hyperlipidemia, and Atherosclerosis," published October 3, 2000

     Patent No. 6,303,586 "A Method for Treating Diabetes, Hyperglycemia, and
     Hypoglycemia," published October 16, 2001

     Serial No. 09/624,474 "A Method for Treating Diabetes, Hyperglycemia, and
     Hypoglycemia," allowed on October 2, 2001

                                       14

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