Document:

EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         THE RICEX COMPANY, a Delaware corporation ("Employer"), and Terrence
Barber ("Employee"), agree as follows, effective as of June 14, 2004 (the
"Effective Date").

         1.       EMPLOYMENT. Employee is employed as Chief Executive Officer of
Employer. In this capacity, Employee shall perform such customary, appropriate
and reasonable executive duties as are usually performed by the Chief Executive
Officer, in addition to such other duties and responsibilities as the Board of
Directors shall designate and are not inconsistent with Employee's position with
Employer, including the performance of duties with respect to any subsidiaries
of Employer.

         2.       TERM. This Agreement shall be effective as of June 14, 2004
(the "Effective Date"). The term of employment under this Agreement shall be for
a period of two (2) years commencing on the Effective Date and ending on June
13, 2006 unless terminated earlier pursuant to Section 7 hereof. At the end of
the initial two-year term, this Agreement shall thereafter be renewed
automatically for succeeding two-year terms, unless either party gives written
notice to the other at least ninety (90) days prior to the expiration of the
initial term (or, if applicable, any extended term) of his or its election not
to extend such employment for the subsequent term.

         3.       COMPENSATION. Employer shall pay Employee a base pay ("Base
Salary") of One Hundred Ninety Thousand Dollars ($190,000) per year. Salary
payments will be payable in periodic installments in accordance with Employer's
pay schedule, but not less than twice per month. Additional increases, if any,
shall be within the sole discretion of the Board of Directors of Employer.
Participation in salary continuation, deferred compensation, discretionary
bonus, retirement, and other employee benefit plans and fringe benefits shall
not reduce the base salary payable to Employee under this Section 3.

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

         4.       BUSINESS EXPENSES. During the term of this Agreement to the
extent that such expenditures satisfy the criteria under the Internal Revenue
Code for deductibility by Employer (whether or not fully deductible by Employer)
for federal income tax purposes as ordinary and necessary business expenses,
Employer shall reimburse Employee promptly for reasonable business expenditures,
including travel, entertainment, lease of an automobile acceptable to Employee
and all expenses associated therewith, parking, business meetings and
professional

<PAGE>
dues made and substantiated in accordance with policies, practices and
procedures established from time to time by Employer generally with respect to
other senior employees and incurred in the pursuit and furtherance of Employer's
business and good will. At the conclusion of this Agreement, Employer will gift
the automobile to Employee.

         5.       CHANGE IN CONTROL. If there should occur a "Change in Control"
of Employer (or any successor), as defined below, then Employee, without
limitation on any other rights hereunder, may, within six (6) months after first
receiving notice (which may be oral) of such event, elect to retire from service
to Employer and to render, on a non-exclusive basis, only such consulting and
advisory services to Employer as Employee may reasonably accept. Any such
consulting and advisory services and the conditions under which they shall be
performed shall be fully in keeping with the position or positions Employee held
under this Agreement. In the event of such election by Employee, the salary,
bonus and benefits to which Employee is entitled under this Agreement shall be
discontinued as of the later of (i) six (6) months after the date of such
election, or (ii) subsequent full-time employment with another enterprise,
provided that in any event such payments shall be discontinued twelve (12)
months after the occurrence of the "Change in Control."

         If a "Change in Control" occurs and Employee is terminated or is not
employed in the same capacity or is not paid the same Base Salary by the new
entity, then Employee shall receive a severance payment equal to the greater of
one year of Employee's Base Salary or the Base Salary payable to Employee for
the remainder of the term of this Agreement, in each case including all unused
vacation, earned bonuses and other benefits, if any, which are accrued, owing
and unpaid at the date of termination. In addition, if a "Change in Control"
occurs and Employee is terminated or is not employed in the same capacity or is
not paid the same Base Salary by the new entity, Employer agrees to continue
Employee's medical/dental/vision insurance benefits as provided by Section 6
hereof from the effective date of the "Change in Control" until the end of the
severance payment period.

         For purposes of the foregoing provisions, a "Change in Control" means,
and shall be deemed to have taken place, if: (i) a change in management has
occurred, (ii) any person or entity or group of affiliated persons or entities,
including a group which is deemed a "person" by Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), after the date
hereof first acquires in one or more transactions, at least one of which is
after the date of this Agreement, ownership of 50% or more of the outstanding
shares of any class of stock then entitled to vote in the election of directors
of Employer, and (iii) as a result of, or in connection with, any such
acquisition or any related proxy contest, cash tender or exchange offer, merger
or other business combination, sale of all or substantially all of the assets of
Employer or any combination of the foregoing transactions (other than a
transaction unanimously approved by the members of the Board of Directors voting
thereon), hereinafter referred to as a "Transaction," the persons who were
directors of Employer immediately before the acquisition shall cease to
constitute three-fourths of the membership of the Board of Directors or any
successor to Employer during the period commencing with the consummation of the
Transaction and ending on the first to occur of the first anniversary of such
date or the conclusion of the next meeting of shareholders to elect directors,
except to the extent that any new directors during such period were elected or
nominated by at least three-fourths of such persons (or new directors who were

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so nominated or elected). "Ownership" means beneficial or record ownership,
directly or indirectly, other than (i) by a person owning such shares merely of
record (such as a member of a securities exchange, a nominee, or a securities
depositary system), (ii) by a person as a bona fide pledgee of shares prior to a
default and determination to exercise powers as an owner of the shares, (iii) by
a person who is not required to file statements on Schedule 13D by virtue of
Rule 13d-1(b) of the Securities and Exchange Commission under the Exchange Act,
or (iv) by a person who owns or holds shares as an underwriter acquired in
connection with an underwritten offering pending and for purposes of their
public resale or planned private placement in increments of less than such 50%
amount. Without limitation, the right to acquire ownership shall not of itself
constitute ownership of shares.

         6.       PARTICIPATION IN RETIREMENT AND EMPLOYEE BENEFIT PLANS.
Employee shall be entitled to a grant of options to purchase 300,000 shares of
Employer's common stock, valued at the lesser of $0.15/share or the market rate
for such stock on date of grant. Such stock shall be issued as soon as
practicable after the execution of this Agreement pursuant to Employer's 1997
Stock Option Plan. Employee also shall be entitled to participate in any other
plan of Employer relating to stock options, stock purchases, pension, salary
continuation, thrift, profit sharing, life insurance, medical coverage,
education, or other retirement or employee benefits that Employer may adopt or
maintain from time to time for the benefit of its executive employees, and shall
be entitled to participate in any other fringe benefits that become applicable
to Employer's executive employees. Nothing in this Agreement shall limit
Employer's ability to adopt, terminate or amend any such benefits at any time;
provided however, the aggregate amount of benefits provided to Employee shall
not be decreased from the amount being provided on the date hereof.

         7.       TERMINATION. The Employee's employment may be terminated under
the following circumstances:

                  a.       DEATH OR DISABILITY. The Employee's employment
hereunder shall terminate upon his death or upon his Disability. For purposes of
this Agreement, Disability shall mean commencement of benefits to the Employee
based on full disability as defined under Employer's group disability insurance
policy, if any, in effect at the time of that event; and in the absence of any
such policy, the absence of the Employee from full time performance of his
duties for a period in excess of one hundred eighty (180) consecutive days due
to incapacity of the Employee from physical or mental illness.

                  b.       CAUSE. Employer may terminate Employee's employment
for Cause. For purposes of this Agreement, "Cause" shall mean Employee's
conviction by, or entry of a plea of guilty or nolo contendere in a court of
competent and final jurisdiction for a felony which involves moral turpitude or
the final adjudication that Employee has committed an act of fraud upon
Employer.

                  c.       TERMINATION WITHOUT CAUSE OR FOR GOOD REASON.
Notwithstanding any other provision of this Section 7, Employer shall have the
right to terminate Employee's employment with Employer without Cause, and
Employee may terminate his employment with Employer for Good Reason. If Employee
is terminated by Employer without "Cause," or if Employee terminates this
Agreement for "Good Reason," or if Employer gives notice as

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<PAGE>
provided in Section 2 of its election not to renew this Agreement after
expiration of the initial term (or, if applicable, any extended term), then
Employee shall receive a severance payment equal to the greater of one year of
Employee's Base Salary or the Base Salary payable to Employee for the remainder
of the term of this Agreement (except if the termination is due to Employer's
election not to renew this Agreement, the severance payment shall be limited to
one year of Employee's Base Salary), in each case including all unused vacation,
earned bonuses, and other benefits, if any, which are accrued, owing and unpaid
at the date of termination. In addition, in such event Employer agrees to
continue Employee's medical/dental/vision insurance benefits as provided by
Section 6 hereof from the effective date of such termination until the end of
the severance payment period. For the purposes of this Agreement, "Good Reason"
shall mean (1) a reduction in Employee's base salary; or (2) a material
demotion; or (3) a material reduction in Employee's responsibilities or
authority; or (4) an involuntary relocation of the place of Employee's
employment with Employer more than twenty (20) miles away from El Dorado Hills
(excluding business travel consistent with Employee's duties to Employer); or
(5) any material breach of this Agreement by Employer which, in each of the
cases described in causes (1) through (5), above, is not cured within fifteen
(15) days after Employee gives written notice to Employer stating the nature of
the claimed breach.

                  d.       TERMINATION DUE TO EMPLOYEE'S DEATH OR DISABILITY. If
Employee's employment with Employer terminates due to his death, then Employer
shall continue to pay the base salary, bonus and benefits payable to Employee
for twelve (12) months. If Employee's employment with Employer terminates due to
his Disability, Employer shall pay Employee the base salary, bonus and benefits
payable to Employee for twelve (12) months, reduced by any monies paid to
Employee through Employer-sponsored disability coverage. In either event,
Employer shall also pay Employee all salary, unused vacation, earned bonuses,
and other benefits, if any, which are accrued, owing and unpaid at the date of
termination.

                  e.       TERMINATION FOR CAUSE OR WITHOUT GOOD REASON. If
Employer terminates Employee's employment with Employer for Cause, or if
Employee resigns his employment with Employer without Good Reason, then Employer
shall pay Employee all salary, unused vacation, earned bonuses, and other
benefits, if any, which are accrued, owing and unpaid at the date of
termination.

                  f.       EXCLUSIVE REMEDY. Employee agrees that the payments
expressly provided and contemplated by this Agreement shall constitute the sole
and exclusive obligation of Employer in response of Employee's employment with
and relationship to Employer and that the payment thereof shall be the sole and
exclusive remedy for any termination of Employee's employment. Employee
covenants not to assert or pursue any other remedies, at law or in equity, with
respect to any termination of employment. Employer shall be entitled to require,
as a condition of payment of the sums due upon termination, that Employee
execute and deliver, and (if revocation is otherwise allowed under federal age
discrimination law) not revoke for seven days, a general release by Employee in
form and content satisfactory to Employer in which Employee releases Employer
and its affiliates from all claims and liabilities that may relate to Employee's
employment by Employer and/or arise under any state of federal laws relating to
employment. This release shall not excuse or impair timely payment by Employer
of any sums due under this Agreement.

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<PAGE>
                  g.       NOTICE OF TERMINATION. Any purported termination of
Employee's employment by Employer or by him shall be communicated by written
Notice of Termination to the other party hereto in accordance with Section 7.
"Notice of Termination" shall mean a notice that shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Employee's employment under the provision so indicated.

                  h.       DATE OF TERMINATION. "Date of Termination" shall mean
(1) if Employee's employment is terminated by his death or Disability, the date
of his death or date of determination of his Disability; (2) if Employee's
employment is terminated by Employer for Cause, the date specified in the Notice
of Termination (which shall not be less than ten (10) days from the date such
Notice of Termination is given), and (3) if Employee's employment is terminated
for any other reason, the date specified in the Notice of Termination.

         8.       NO ASSIGNMENTS.

                  a.       This Agreement is personal to each of the parties
hereto. No party may assign or delegate any rights or obligations hereunder
without first obtaining the written consent of the other party hereto; provided
that in the case of Employer such rights and obligations shall inure to the
benefit of and be binding upon any successor corporation or entity with which
Employer may be merged or otherwise combined or which may acquire Employer's
assets in whole or substantial part.

                  b.       This Agreement shall inure to the benefit of and be
enforceable by Employee and his personal or legal representatives, executors,
administrators, successors, heirs, distributees, devises and legatees. If
Employee should die, payments due to Employee hereunder shall be paid in
accordance with the terms of this Agreement to his devisee, legatee or other
designee or, if there is no such designee, to his estate, unless otherwise
provided herein.

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

                  Company:          The RiceX Company
                                    1241 Hawk's Flight Court
                                    El Dorado Hills, CA  95762
                                    Telephone:  (916) 933-3000
                                    Facsimile:  (916) 933-3232

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<PAGE>

                  Employee:         Terrence Barber

                                    _______________________________

                                    _______________________________
                                    Telephone:  (____) ____________

                  Notice of change of address shall be given by written notice
in the manner detailed in this Section 9.

         10.      NONCOMPETITION; CONFIDENTIAL INFORMATION. As a condition to
his employment by Employer, Employee shall execute and deliver to Employer a
Confidential Information Agreement in the form of EXHIBIT "A" attached hereto.

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

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

         13.      ENFORCEMENT. This Agreement shall be interpreted in accordance
with the laws of the State of California and will be adjudicated in the Superior
Court of California in and for the County of El Dorado. In the event of any
dispute concerning any aspect of the obligations of Employer under this
Agreement, Employer or its successor shall reimburse Employee all attorney fees
and costs incurred by Employee in connection with adjudication of such matters.

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

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

                         [SIGNATURES ON FOLLOWING PAGE]

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

                                      "EMPLOYER"

                                      THE RICEX COMPANY
                                      a Delaware corporation (the "Company")

                                      By:  _____________________________________

                                           _____________________________________

                                           Its:  _______________________________

                                      "EMPLOYEE"

                                      __________________________________________
                                       Terrence Barber

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<PAGE>
                                   EXHIBIT "A"
                                   -----------

                       CONFIDENTIAL INFORMATION AGREEMENT

<PAGE>
                       CONFIDENTIAL INFORMATION AGREEMENT
                       ----------------------------------

         PLEASE READ CAREFULLY: THIS DOCUMENT CONTAINS ASSIGNMENTS OF INVENTIONS
AND COPYRIGHTS, AND OTHER IMPORTANT PROVISIONS RELATING TO LEGAL RIGHTS.

         This Confidential Information Agreement (the "Agreement") is entered
into as of June 14, 2004 between The RiceX Company, a Delaware corporation
("Employer") and Terrence Barber (referred to below as "I").

         While serving as an employee, independent contractor, director or other
capacity with Employer (referred to, as the case may be, as "relationship"
below), I may have access to information about Employer or its business. I
acknowledge that Employer has a legitimate interest in keeping this information
confidential in order to maximize Employer's business opportunities. I confirm
my intention to protect this information against unauthorized use. Therefore, in
consideration of my relationship with Employer and other legal and adequate
consideration, the receipt of which is hereby acknowledged, I agree for the
benefit of Employer that:

1.       PROVISIONS RELATED TO TRADE SECRETS

         (a)      PROPRIETARY INFORMATION. As used in this Agreement,
"Proprietary Information" means the following, whether now or later owned or
existing, whether or not marked "confidential," and however embodied or stored:
(1) any information (including without limitation any formula, pattern,
compilation, program, device, method, technique or process) relating to or owned
by Employer that derives independent economic value, actual or potential from
not being generally known to the public or to other persons who can obtain
economic value from its disclosure or use, and (2) any other invention, trade
secret, knowledge or information pertaining to Employer or Employer's existing
or prospective businesses, customers, suppliers, and others with whom Employer
does or intends to do business, which relates to products, services, processes,
know-how, designs, formulas, methods, work in process, improvements,
discoveries, plans for research, software programs, source or object codes,
algorithms, data, techniques, marketing, selling, business plans, budgets,
unpublished financial statements, licenses, prices, costs, employee skills or
compensation, or other matters.

         (b)      TRUST. I acknowledge that Employer possesses and will continue
to develop and acquire valuable Proprietary Information, including information
that I may develop or discover as a result of my relationship with Employer. The
value of that Proprietary relationship Information depends on it remaining
confidential. Employer depends on me to maintain that confidentiality, and I
accept that position of trust.

         (c)      PROHIBITED USE/DISCLOSURE. I will not disclose or use at any
time, either during or after my relationship with Employer, any Proprietary
Information except for the exclusive benefit of Employer as required by my
duties for Employer or as Employer expressly may consent to in writing. I will
cooperate with Employer and use my best efforts to prevent the unauthorized
disclosure, use or reproduction of Proprietary Information, except as expressly
authorized by Employer.

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<PAGE>
         (d)      RETURN OF INFORMATION. Upon the end of my relationship with
Employer for any reason, I immediately will deliver to Employer all tangible,
written, graphical machine readable and other materials (including all copies)
in my possession or under my control containing or disclosing Proprietary
Information.

         (e)      WAIVERS. I waive all claims and defenses I might otherwise
have to assert that Employer's procedure or lack of procedure to protect
Proprietary Information lessens or excuses any duty I have expressly agreed to
in this Agreement. I further waive any right I might otherwise have to assert or
claim that any acts or omissions of Employer outside this Agreement constitute a
set off, counterclaim or defense to any rights Employer has under this
Agreement.

         (f)      OTHER AGREEMENTS. I agree that I will not directly or
indirectly commit or cause a violation or breach of Employer's nondisclosure
obligations under any agreement to which Employer may be or become a party. I
will comply with the confidentiality provisions of, and execute such
confidentiality forms as may be required under, any contracts between Employer
and parties contracting with Employer.

2.       OWNERSHIP OF INVENTIONS

         (a)      INVENTIONS. As used in this Agreement, the term "inventions"
includes, but is not limited to, all inventions, original works of authorship,
ideas, patterns, devices, techniques, discoveries, improvements, processes,
developments, designs, know-how, data, programs, formulas, source and object
codes, methods, diagrams, technology and trade secrets, whether or not reduced
to practice or the subject of any governmental filings.

         (b)      ASSIGNMENT TO COMPANY. I agree to communicate to Employer as
promptly and fully as practicable all Inventions conceived or reduced to
practice by me (alone or jointly by others) at any time during my relationship
with Employer. I hereby assign to Employer and/or its nominees all my right,
title and interest in such Inventions, and all my right, title and interest in
any patents, copyrights, mask work rights, trademarks, and service marks, and
all applications, registrations, and other filings or rights related thereto on
a worldwide basis (collectively referred to for convenience as "Proprietary
Filings"). I will assist Employer and/or its nominees (without charge but at no
expense to me) at any time and in every lawful way to obtain for its and/or
their own benefit, all Proprietary Filings for all such Inventions anywhere in
the world and to enforce its and/or their rights in legal proceedings.

         (c)      LABOR CODE EXCEPTION. Any provision in this Agreement
requiring me to assign my rights in any Invention does not apply to an Invention
which qualifies under the provisions of Section 2870 of the California Labor
Code. That section provides that the requirement to assign "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 the employer. I
understand that I bear the burden of proving that an Invention qualifies under
Section 2870.

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<PAGE>
         (d)      U.S. CONTRACTS. Notwithstanding the foregoing, I also assign
to Employer (or to any of its nominees) all rights which I may have or acquire
in any Invention, full title to which is required to be in the United States by
a contract between Employer and the United States or any of its agencies.

         (e)      POWER OF ATTORNEY. I hereby irrevocably designate and appoint
Employer and each of its duly authorized officers and agents as my agent and
attorney-in-fact to act for and in my behalf and stead to execute and file any
document and to do all other lawfully permitted acts to further the prosecution,
issuance and enforcement of Proprietary Filings with the same force and effect
as if executed and delivered by me.

         (f)      LIST OF EXCLUDED INVENTIONS. I have attached hereto as Exhibit
"A" a complete list of all Inventions that I consider to be my property or owned
by others and that I wish to exclude from this Agreement (with only generic
listings if specific disclosure would violate any prior agreement). If no items
are listed, I agree that there are no such items.

3.       OTHER PROMISES

         (a)      NO COMPETITION DURING MY RELATIONSHIP WITH EMPLOYER. During my
relationship with Employer, I will not, without Employer's express written
consent, engage in any employment or business other than for Employer, or cause
or assist (in any manner) in the formation or operations of any business
competitive with or similar to the existing or future business of Employer.

         (b)      NO SOLICITATION/USE OF PROPRIETARY INFORMATION. I agree that
during my relationship with Employer, and for one (1) year following its
termination by me or by Employer, I will not: (1) directly or indirectly, alone
or working for others, solicit business as to products or services similar to
the products or services of Employer from any of Employer's customers or
prospective customers with whom I have had any contact prior to the end of my
relationship with Employer, or (2) solicit for employment any person employed by
Employer (or its affiliates or successors). I agree that the identity of
Employer's suppliers and customers and the related terms of dealing constitute
trade secrets of Employer and that the foregoing promise is a reasonable means
of protecting Employer's trade secrets from the inevitable disclosure that would
result from a violation of the foregoing covenants.

         (c)      NO CONFLICT WITH OTHER AGREEMENTS. My relationship with
Employer and my compliance with this Agreement do not and will not breach any
agreement to keep in confidence information acquired by me prior to or outside
of my relationship with Employer. I have not brought and will not bring with me
to Employer for use in the performance of my duties at Employer any materials,
documents or information of a former employer or any third party that are not
generally available to the public unless I have obtained (and first given to
Employer) express written authorization from the owner for their possession and
use by or for Employer. I will not use or disclose to Employer during my
relationship with the Company any information if that use or disclosure would
cause me to violate any contractual or legal duty to any third party. I have not
entered into, and will not enter into, any agreement, either oral or written, in
conflict with this Agreement. I am not obligated under any contract or other
agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would interfere with the

                                      A-3
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use of my best efforts to promote the interests of Employer or that would
conflict with Employer's existing or proposed business known to me.

4.       GENERAL

         (a)      AMENDMENT. My obligations under this Agreement may not be
modified or terminated, in whole or in part, except in writing signed by the
Board of Directors of Employer. Any waiver by Employer of a breach of any
provision of this Agreement will not operate or be construed as a waiver of any
subsequent breach.

         (b)      SEVERABILITY/INTERPRETATION. Each provision of this Agreement
will be treated as a separate and independent clause, and the unenforceability
of any one provision will in no way impair the enforceability of any other
provision. If any provision is held to be unenforceable, such provision will be
construed by the appropriate judicial body by limiting or reducing it to the
minimum extent necessary to make it legally enforceable. If any provision hereof
is considered unclear or ambiguous, it shall not be construed against Employer
but instead shall be construed to give effect to the interests of Employer
consistent with the specific provisions of this Agreement.

         (c)      SURVIVAL OF MY OBLIGATIONS. My obligations under this
Agreement will survive the termination of my employment or other relationship
and any other contract with Employer, regardless of the cause, lack of cause, or
manner of such termination. This Agreement will inure to the benefit of and be
binding upon the successors and assigns of Employer.

         (d)      NO IMPLIED TERMS. I understand that the provisions of this
Agreement are a material condition to my relationship with Employer. I also
understand that this Agreement is not an employment contract, and nothing in
this Agreement shall create or imply (1) any right to require Employer to employ
or continue to employ me, or otherwise enter into or continue any contract with
me, (2) any particular terms of employment or other relationship, or (3) any
limitation on the right of Employer or me to end my employment or other
relationship.

         (e)      REMEDIES AND ATTORNEYS' FEES. Any breach of this Agreement
likely will cause irreparable harm to Employer for which money damages could not
reasonably or adequately compensate Employer. Accordingly, I agree that Employer
will be entitled to a court order of specific performance of this Agreement and
injunctive relief to enforce this Agreement, in addition to damages and other
remedies available to Employer by contract or by law. If any action or
proceeding shall be commenced to enforce this Agreement or any right arising in
connection with this Agreement, the prevailing party in such action or
proceeding shall be entitled to recover from the other party, the reasonable
attorneys' fees, costs and expenses incurred by such prevailing party in such
action and any related appeals, bankruptcy, collection or enforcement
proceedings.

         (f)      APPLICABLE LAW. This Agreement will be governed by and
interpreted in accordance with the laws of the State of California governing a
contract made in and between residents of California and wholly performed within
California.

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<PAGE>
         (g)      COMPLETE AGREEMENT. This Agreement contains the complete
agreement between Employer and me concerning the subject matter hereof and
supersedes all other agreements and written or oral understandings. This
Agreement may be executed in counterparts.

                                        ________________________________________
                                        (Signature)

                                        ________________________________________
                                        (Print Name)

AGREED AND ACKNOWLEDGED:

The RiceX Company,
a Delaware corporation

By: ____________________________________

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<PAGE>
                                   EXHIBIT "A"
                                   -----------

                            LIST OF PRIOR INVENTIONS
                            ------------------------

                                                            Identifying Number
Title                                 Date                  or Brief Description
-----                                 ----                  --------------------

                                     "NONE"

                                       A-1Atlantic Security, Inc.
                                  Term Sheet
                                3rd June 2004

Issuer:	Atlantic Security, Inc. ("Atlantic" or the "Company"), a corporation
existing under the laws of the state of Florida

Investor:  Citywide Management Ltd
           556 Hunkins Waterfront Plaza, Nevis, West Indies

Offering Size:	US $5,000,000 (five million US dollars).

Type of Security:	Common Shares.

Price per Share:        Seventy percent (70%) of the average closing bid price
                        of the stock, as reported by Bloomberg for the ten (10)
                        trading days immediately preceding the closing day

Use of Proceeds:	Working capital.

Subscription Agreement: There will be five separate Supscription Agreements,
                        each for $1,000,000.  The terms of each Subscription
                        Agreement are attached as Exhibt A.

Warrant:                As compensation to the investor for the commitment to
                        invest US $5,000,000, in five(5) tranches of
                        US$1,000,000 the company will issue the investor
                        a warrant to acquire one million  Common Shares on or
                        before June 30, 2007, exercisable in tranches of
                        50,000 (fifty thousand) shares at the lesser of the
                        initial closing price or Seventy percent (70%) of the
                        average closing bid price of the stock, as reported by
                        Bloomberg for the ten (10) trading days immediately
                        preceding the exercise day

Assignable              The investor retains the right to assign some or all
                        of thie Financing Agreemen to other "Accredited
                        Investors" as defined under Rule 501(a) of Regulation
                        D of the Securities Exchange Act of 1933.

Commencement date.	This Offering shall succeed the existing  Subscription
                        Agreement dated 23rd March 2003 between the company
                        and the investor and shall commence on the fortieth
                        day subsequent to the final closing of the share
                        purchase contemplated in the agreement of  23rd
                        March 2003

Closings:               The Company expects to hold five rolling closings of
                        this Offering. Each subsequent closing will take
                        place on the first United States business day that
                        is 42 (forty two) days subsequent to the previous
                        closing, or in such shorter period as to be mutually
                        agreed by the company and the investor.

Hold Period:            Atlantic is a foreign private issuer under US
                        securities laws. As such, under Reg S, Rule 903, if
                        Atlantic issues securities to an offshore investor
                        (not a US Person), under applicable US law, Atlantic
                        must ensure that steps are taken so that the
                        securities are not resold into the US until the
                        expiration of a 40 day distribution compliance period.
                        In addition, the laws of the jurisdiction of residence
                        of the subscriber may impose hold periods which differ
                        from US requirements.

Entire Agreement        This Financing Agreement, together with Exhibit A and
                        Exhibit B shall constitute the entire Agreement.

Citywide Management Ltd.
/s/ Charlotte Artus
--------------------
Director
For and on behalf of
Citywide Management Ltd
556 Hunkins Waterfront Plaza, Nevis, West Indies

<PAGE>

EXHIBIT A
---------

NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION
AGREEMENT (THE "AGREEMENT") RELATES HAVE BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"),
AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED
STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT.

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT
(Outside North America)

Personal & Confidential

TO:		Atlantic Security Inc

Purchase of Securities

1.		Subscription

1.1		The undersigned (the "Subscriber") hereby irrevocably
subscribes for and agrees to purchase (such subscription and agreement
to purchase being the "Subscription") on the basis of the
representations and warranties and subject to the terms and conditions
set forth herein, that number of common shares (the Shares) being
referred to herein as ("Securities") in the capital of the Company set
out above the Subscriber's name in the delivery instructions at the
price per share that is 70% (seventy percent) of the average closing
bid price of the shares, as reported by Bloomberg, for the preceding
10 (Ten)  trading days immediately prior to the closing. (Subscription
Price").

1.2		The Company hereby irrevocably agrees to sell, on the basis
of the representations and warranties and subject to the terms and
conditions set forth herein, to the Subscriber that number of shares
set out above the Subscriber's name as set out in the delivery
instructions, at the Subscription Price.

1.3		Subject to the terms hereof, the Subscription will be
effective upon its acceptance by the Company.

2.		Payment

2.1		The Subscription Price shall be paid by certified cheque or
bank draft made payable to the Company in immediately available funds.
Such certified cheque or bank draft must accompany this Subscription
for delivery at Closing, or the Subscription Money may be immediately
wired to the Company according to the wire instructions provided by
the Company.

3.		Undertaking and Direction

3.1		The Subscriber must complete, sign and return along with
two (2) executed copies of this Agreement to the Company with respect
to registration and delivery instructions..

<PAGE>

3.2		The Subscriber shall complete, sign and return to the
Company as soon as possible on request by the Company any
documents, questionnaires, acknowledgements, notices and
undertakings as may be required by regulatory authorities,
stock exchanges and applicable law.

4.		Closing

4.1		Closing of the offering (the "Closing") shall occur no
later than the fortieth day subsequent to the final closing
of the financing agreement dated 23rd March 2003 or on such
other date as may be mutually agreed to by the Subscriber
and the Company (the "Closing Date").

5.		Acknowledgements of Subscriber

5.1		The Subscriber acknowledges and agrees that:

(a)	the Securities have not been registered under the 1933 Act,
or under any state securities or "blue sky" laws of any
state of the United States, and, unless so registered, may
not be offered or sold in the United States or to U.S.
Persons, as that term is defined in Regulation S
promulgated under the 1933 Act ("Regulation S"), except
pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the 1933 Act;

(b)	the decision to execute this Agreement and purchase the
Securities agreed to be purchased hereunder has not been
based upon any oral or written representation as to fact or
otherwise made by or on behalf of the Company , and such
decision is based entirely upon a review of information
(the receipt of which is hereby acknowledged) which has
been filed by the Company with the United States Securities
and Exchange Commission and in compliance, or intended
compliance, with applicable securities legislation
(collectively, the "Public Record") including the Company's
audited financial statements, together with the related
schedules and notes, for the year ending
___________________;

(c )   the Company is entitled to rely on the representations and
warranties and the statements and answers of the Subscriber
contained in this Agreement and in the questionnaires and
undertakings attached as schedules to this Agreement, and
the Subscriber will hold harmless each of the Agents and the
Company from any loss or damage it or they may suffer as a
result of the Subscriber's failure to correctly complete
this Agreement or such questionnaires and undertakings;

(d)	by execution hereof the Subscriber has waived the need for
the Company to communicate the Company's acceptance of the
purchase of the Securities pursuant to this Agreement;

(e)	it will indemnify and hold harmless the Company and, where
applicable, their respective directors, officers,
employees, agents, advisors and shareholders from and
against any and all loss, liability, claim, damage and
expense whatsoever (including, but not limited to, any and
all fees, costs and expenses whatsoever reasonably incurred

<PAGE>

in investigating, preparing or defending against any claim,
lawsuit, administrative proceeding or investigation whether
commenced or threatened) arising out of or based upon any
representation or warranty of the Subscriber contained
herein or in any document furnished by the Subscriber to
the Company in connection herewith being untrue in any
material respect or any breach or failure by the Subscriber
to comply with any covenant or agreement made by the
Subscriber to the Company in connection therewith;

(f)	the issuance and sale of the Securities to the Subscriber
will not be completed if acceptance of the Subscription
would be unlawful or if, in the discretion of the Company,
acting reasonably, acceptance is not in the best interests
of the Company;

(g)	it has been advised to consult its own legal, tax and other
advisors with respect to the merits and risks of an
investment in the Securities and with respect to applicable
resale restrictions and it is solely responsible (and
neither the Agents nor the Company is in any way
responsible except with regard to the Company's obligations
arising from section 7 of this Agreement) for compliance
with applicable resale restrictions;

(h)	the Securities are not listed on any stock exchange or
subject to quotation except that the Shares currently are
listed on the National Association of Securities Dealers,
Inc. Automated Quotation System OTC Bulletin Board Market,
and no representation has been made to the Subscriber that
the Securities will become listed on any other stock
exchange or subject to quotation on any other quotation
system;

(i)	the Subscriber is not resident in Canada nor the United
States and is not purchasing the Securities for such
residents;

(j)	no securities commission or similar regulatory authority
has reviewed or passed on the merits of the Securities;

(k)	there is no government or other insurance covering the
Securities;

(l)	there are risks associated with the purchase of the
Securities;

(m)	there are restrictions on the Subscriber's ability to
resell the Securities and it is the responsibility of the
Subscriber to find out what those restrictions are and to
comply with them before selling the Securities;

(n)    the Company has advised the Subscriber that the Company is
relying on an exemption from the requirements to provide
the Subscriber with a prospectus and to sell the Securities
through a person registered to sell securities under The
Act

(o)	this Agreement is not enforceable by the Subscriber unless
it has been accepted by the Company.

6.		Representations, Warranties and Covenants of the Subscriber

<PAGE>

6.1		The Subscriber hereby represents and warrants to and
covenants with the Company (which representations,
warranties and covenants shall survive the Closing) that:

(a)	the Subscriber and any beneficial purchaser for whom it is
acting are resident in the jurisdiction set out under the
heading "Name and Address of Subscriber" on the delivery
instructions of this Subscription;

(b)	the Subscriber has the legal capacity and competence to
enter into and execute this Subscription and to take all
actions required pursuant hereto and, if the Subscriber is
a corporation, it is duly incorporated and validly
subsisting under the laws of its jurisdiction of
incorporation and all necessary approvals by its directors,
shareholders and others have been obtained to authorize
execution and performance of this Subscription on behalf of
the Subscriber;

(c)	the entering into of this Subscription and the transactions
contemplated hereby do not result in the violation of any
of the terms and provisions of any law applicable to, or
the constating documents of, the Subscriber or of any
agreement, written or oral, to which the Subscriber may be
a party or by which the Subscriber is or may be bound;

(d)	the Subscriber has duly executed and delivered this
Subscription and it constitutes a valid and binding
agreement of the Subscriber enforceable against the
Subscriber;

(e)	it understands and agrees that none of the Securities has
been registered under the 1933 Act, and they may not be
sold under U.S. law except as permitted in paragraph 6.1(g)
below;

(f)	it is purchasing the Securities for its own account or for
an account with respect to which it exercises sole
investment discretion, and that it or such account is an
accredited investor as that term is defined in Rule 501
under the 1933 Act (an "Institutional Accredited Investor")
acquiring the Securities for investment purposes and not
for distribution;

(g)	it understands and agrees (i) that the Securities are being
offered only in a transaction not involving any public
offering within the meaning of the 1933 Act, and under Rule
144 under the 1933 Act ("Rule 144") (ii) that (A) if within
the 40 day period after the date of original issuance of
the Securities, or if within three months after it ceases
to be an affiliate (within the meaning of Rule 144) of the
Company, it decides to resell, pledge or otherwise transfer
any of the Shares on which the legend as set forth below
appears, such Shares may be resold, pledged or transferred
only (1) to the Company, (2) so long as the Shares are
eligible for resale pursuant to Rule 144A under the 1933
Act ("Rule 144A"), to a person whom the seller reasonably
believes is a qualified institutional investor buyer
("QIB") as that term is defined in Rule 144A(a)(1) that
purchases for its own account or for the account of a QIB
to whom notice is given that the resale, pledge or transfer

<PAGE>

is being made in reliance on Rule 144A (as indicated by the
box checked by the transferor on the certificate of
transfer on the reverse of the Shares), (3) in an offshore
transaction in accordance with Regulation S (as indicated
by the box checked by the transferor on the certificate of
transfer on the reverse of the Shares), (4) to an
Institutional Accredited Investor (as indicated by the box
checked by the transferor on the certificate of transfer on
the reverse of the Shares) who has certified to the Company
that such transferee is an Institutional Accredited
Investor and is acquiring such security for investment
purposes and not for distribution, (5) pursuant to an
exemption from registration provided by Rule 144 (if
applicable) under the 1933 Act, (6) in a transaction that
does not require registration under the 1933 Act or any
applicable U.S. state laws and regulations governing the
offer and sale of securities, and it has prior to such sale
furnished to the Company an opinion of counsel reasonably
satisfactory to the Company, or (7) pursuant to an
effective registration statement under the 1933 Act, in
each case in accordance with any applicable securities laws
of any state of the United States, (B) the purchaser will,
and each subsequent holder is required to, notify any
purchaser of the Shares from it of the resale restrictions
referred to in clause (A) above, if then applicable, and
(C) with respect to any transfer of the Shares by an
Institutional Accredited Investor, such holder will deliver
to the Company such certificates and other information as
it may reasonably require to confirm that the transfer by
it complies with the restrictions set forth in this
paragraph 6.1(g);

(h)	it understands and agrees that the notification requirement
referred to in paragraph 6.1(g) above will be satisfied by
virtue of the fact that the legend set out below will be
placed on the Shares unless otherwise agreed by the
Company.

"THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
"1933 ACT").  THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT
THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED TO A U.S. PERSON EXCEPT AFTER THE EXPIRY
OF A 40 DAY DISTRIBUTION COMPLIANCE PERIOD AS
PRESCRIBED IN REGULATION S."

(i)	it (i) is able to fend for itself in the Subscription; (ii)
has such knowledge and experience in business matters as to
be capable of evaluating the merits and risks of its
prospective investment in the Securities; and (iii) has the
ability to bear the economic risks of its prospective
investment and can afford the complete loss of such
investment;

(j)	it understands and agrees that the legend referred to in
paragraph 6.1(i) above shall not be removed from any Shares
purchased by it pursuant to this Subscription unless there
is delivered to the Company such satisfactory evidence,
which may include an opinion of counsel licensed to
practice law in one of the states of the United States of
America, as may be reasonably required by the Company, that
such Shares are not "restricted" within the meaning of Rule
144;

(k)	if it is acquiring the Securities as a fiduciary or agent
for one or more investor accounts, it has sole investment

<PAGE>

discretion with respect to each such account and it has
full power to make the foregoing acknowledgments,
representations and agreements on behalf of such account;

(l)	it understands and agrees that the Company and others will
rely upon the truth and accuracy of the acknowledgments,
representations and agreements contained in sections 5 and
6 hereof and agrees that if any of such acknowledgments,
representations and agreements are no longer accurate or
have been breached, it shall promptly notify the Company;

(m)	the Subscriber is not aware of any advertisement of any of
the Securities;

(n)	in purchasing the Securities the Subscriber has complied
with all securities laws of its jurisdiction of residence
and warrants that the sale of the Securities by the Company
is in full compliance with such laws, and the Subscriber
will make all filings necessary in such jurisdiction to
ensure the Company complies with securities laws of such
jurisdiction; and

(o)	no person has made to the Subscriber any written or oral
representations:

(i)	that any person will resell or repurchase any of the
Securities;

(ii)	that any person will refund the purchase price of any
of the Securities; or

(iii)	as to the future price or value of any of the
Securities.

6.2		In this Subscription, the term "U.S. Person" shall have the
meaning ascribed thereto in Regulation S and for the purpose
of the Subscription includes any person in the United
States.

7.		Representations and Warranties of the Company

7.1		The Company acknowledges and agrees that the Subscriber is
entitled to rely upon the representations and warranties of
the Company contained in this Agreement and further
acknowledges that the Subscriber will be relying upon such
representations and warranties in purchasing the Securities.

7.2		The Company warrants that the Public Record fairly
represents the status of the Company as at the dates
indicated in the Public Record.

8.		Acknowledgement and Waiver

8.1		The Subscriber has acknowledged that the decision to
purchase the Securities was solely made on the basis of
publicly available information.  The Subscriber hereby
waives, to the fullest extent permitted by law, any rights
of withdrawal, rescission or compensation for damages (other
than as expressly described herein).

9.		Costs

<PAGE>

9.1		The Subscriber acknowledges and agrees that all costs and
expenses incurred by the Subscriber (including any fees and
disbursements of any special counsel retained by the
Subscriber) relating to the purchase of the Shares shall be
borne by the Subscriber.

10.		Governing Law

10.1		This Subscription Agreement is governed by the Securities
and Exchange Commission Act of 1933 (As Amended) of 1933
(The Act).  The Subscriber, in its personal or corporate
capacity and, if applicable, on behalf of each beneficial
purchaser for whom it is acting, irrevocably attorns to the
jurisdiction of the courts of  the state of Florida

11.		Survival

11.1		This Subscription, including without limitation the
representations, warranties and covenants contained herein,
shall survive and continue in full force and effect and be
binding upon the parties hereto notwithstanding the
completion of the purchase of the Securities by the
Subscriber pursuant hereto, the completion of the issue of
Securities of the Company and any subsequent disposition by
the Subscriber of the Shares.

12.		Assignment

12.1		This Subscription is  transferable or assignable.

13.		Execution

13.1		The Company shall be entitled to rely on delivery by
facsimile machine of an executed copy of this Subscription
and acceptance by the Company of such facsimile copy shall
be equally effective to create a valid and binding agreement
between the Subscriber and the Company in accordance with
the terms hereof.

14.		Severability

14.1		The invalidity or unenforceability of any particular
provision of this Subscription shall not affect or limit the
validity or enforceability of the remaining provisions of
this Subscription.

15.		Termination

15.1		If, prior to Closing, the company determine for valid cause
to terminate this Subscription Agreement, this Agreement and
the obligations of the parties hereto are deemed to have
terminated as at the effective date of such termination.

16.		Entire Agreement

16.1		Except as expressly provided in this Agreement and in the
agreements, instruments and other documents contemplated or
provided for herein, this Agreement contains the entire

<PAGE>

agreement between the parties with respect to the sale of
the Securities and there are no other terms, conditions,
representations or warranties, whether expressed, implied,
oral or written, by statute or common law, by the Company,
the Agents, the Subscriber or by anyone else.

17.		Notices and Counterparts

17.1		All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if
mailed or transmitted by any standard form of
telecommunication.  Notices to the Subscriber shall be
directed to the address on the delivery instructions;
notices to the Company shall be directed to it at
_______________________________________________ , attention
of The President;

17.2		This Agreement may be executed in any number of
counterparts, each of which, when so executed and delivered,
shall constitute an original and all of which together shall
constitute one instrument.

IN WITNESS WHEREOF the Subscriber has duly executed this
Subscription as of the date first above mentioned.

Number of Shares
to be purchased at U.S.$______ each:__________________

Total purchase price: U.S.$ 1,000,000

DELIVERY INSTRUCTIONS

1.	Delivery - please deliver the Share certificate(s) to:

________________________________________________________________________

________________________________________________________________________

2.	Registration - registration of the Share certificates which are
to be delivered at Closing should be made as follows:

	Citywide  Management Services
	38 Hartford Street, London W1J 7SG. United Kingdom

3.	The undersigned hereby acknowledges that it will deliver to the
Company all such additional completed forms in respect of the
Subscriber's purchase of Securities as may be required for filing
with the appropriate securities commissions and regulatory
authorities and stock exchanges.

                             Citywide Management Ltd
                             (Name of Subscriber - Please type or print)

                             Director
                             (Signature and, if applicable, Office)

                             556 Hunkins Waterfront Plaza, Nevis, West Indies.
                             (Address of Subscriber)

<PAGE>

A C C E P T A N C E

The above-mentioned Subscription in respect of the Securities is
hereby accepted by
ATLANTIC SECURITY INC.

DATED at ___________________________________________, the _________
day of ___________________, 2001.

ATLANTIC SECURITY INC.

Per:	________________________________
	Authorized Signatory

<PAGE>

EXHIBIT B
---------

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS.

THESE WARRANTS AND THE SECURITIES DELIVERABLE UPON EXERCISE THEREOF
ARE SUBJECT TO A HOLD PERIOD.

WARRANT CERTIFICATE

WARRANT FOR PURCHASE OF COMMON SHARES

THIS WARRANT WILL BE VOID AND OF NO VALUE UNLESS EXERCISED WITHIN THE
LIMITS HEREIN PROVIDED

THIS WARRANT IS NOT TRANSFERABLE

                            ATLANTIC SECURITY INC.

           (Incorporated under the laws of the sate of Florida)

WARRANT CERTIFICATE NO. _____	1,000,000	 WARRANTS

Each such warrant entitling
the holder to purchase one
(1) Common Share at the
Exercise Price of (i)
US$____ per Common Share,
being the lesser of the
initial closing price or
70% (seventy percent)of the
average 10 (ten) day
closing bid price as
reported by Bloomberg  for
the ten trading days
immediately preceding the
exercise day. at  or before
5:00 p.m. (EST) on June 30,
2006.

DATE OF ISSUANCE:  _______, 2005

THIS IS TO CERTIFY THAT Citywide Management Ltd (herein called the
"Holder") is entitled to acquire in the manner herein provided,
subject to the restrictions herein contained, during the period
commencing on the date hereof and ending at 5:00 p.m. (EST) on June
30, 2006 (the "Expiry Date"), the number of fully paid and non-
assessable common shares ("Common Shares") without nominal or par
value of Atlantic Security Inc. ("the Company") as set forth above.

<PAGE>

The Warrants are governed by the Terms and Conditions attached.

Any Common Shares issuable on exercise of the Warrants represented by
this Certificate will contain the following legends:

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS.

THE FOLLOWING ARE THE TERMS AND CONDITIONS REFERRED TO IN THIS
WARRANT:

ARTICLE 1

INTERPRETATION

1.1		Definitions

	In these Terms and Conditions, unless there is something in the
subject matter or context inconsistent therewith:

(a)	"Common Shares" means the common shares in the capital of
the Company as constituted at the date hereof and any
shares resulting from any subdivision or consolidation of
the Common Shares;

(b)	"Company" means Atlantic Security Inc. or its successor
corporation as a result of consolidation, amalgamation or
merger with or into any other corporation or corporations,
or as a result of the conveyance or transfer of all or
substantially all of the properties and estates of the
Company as an entirety to any other corporation and
thereafter "Company" will mean such successor corporation;

(c)	"Company's Auditors" means an independent firm of
accountants duly appointed as Auditors of the Company;

(d)	"herein", "hereby" and similar expressions refer to these
Terms and Conditions as the same may be amended or modified
from time to time; and the expression "Article" and
"Section" followed by a number refer to the specified
Article or Section of these Terms and Conditions;

(e)	"person" means an individual, corporation, partnership,
trustee or any unincorporated organization and words
importing persons have a similar meaning;

(f)	"Warrant Holders" or "Holders" means the holders of the
Warrants; and

(g)	"Warrants" mean share purchase warrants issued by the
Company.

1.2		Gender

		Words importing the singular number include the plural and
vice versa and words importing the masculine gender include the
feminine and neuter genders.

<PAGE>

1.3		Interpretation Not Affected by Headings

		The division of these Terms and Conditions into Articles
and Sections, and the insertion of headings are for convenience of
reference only and will not affect the construction or interpretation
thereof.

1.4		Applicable Law

		The Warrants will be construed in accordance with the laws
of__________________________________.

ARTICLE 2

ISSUE OF ADDITIONAL WARRANTS

2.1		Additional Warrants

		The Company may at any time and from time to time issue
additional warrants or grant options or similar rights to acquire or
purchase Common Shares.

2.2		Issue in Substitution for Lost Warrants

(a)	In case a Warrant becomes mutilated, lost, destroyed or
stolen, the Company, at its discretion, may issue and
deliver a new Warrant of like date and tenor as the one
mutilated, lost, destroyed or stolen, in exchange for and
in place of and upon cancellation of such mutilated
Warrant, or in lieu of, and in substitution for such lost,
destroyed or stolen Warrant and the substituted Warrant
will be entitled to the benefit hereof and rank equally in
accordance with its terms with all other Warrants issued or
to be issued by the Company.

(b)	The applicant for the issue of a new Warrant pursuant
hereto will bear the cost of the issue thereof and in case
of loss, destruction or theft furnish to the Company such
evidence of ownership and of loss, destruction, or theft of
the Warrant so lost, destroyed or stolen as will be
satisfactory to the Company in its discretion and such
applicant may also be required to furnish indemnity in
amount and form satisfactory to the Company in its
discretion, and will pay the reasonable charges of the
Company in connection therewith.

2.3		Warrant Holder Not a Shareholder

		A Warrant Holder is not a shareholder of the Company, is
not entitled to any rights or interests as a shareholder of the
Company and has only the rights and interests expressly provided
herein.

ARTICLE 3

NOTICE

3.1		Notice to Warrant Holders

		Any notice to be given to the Holders will be sent by
prepaid registered post and will be deemed to have been received by
the Holder on the fourth day following the mailing thereof or on the
date of successful facsimile transmission or email.  Any such notice
will be addressed to the Holder at the address of the Holder appearing
on the Holder's Warrant or to such other address as the Holder may
advise the Company by notice in writing.

3.2		Notice to the Company

		Any notice to be given to the Company may be delivered
personally, or sent by facsimile or other means of electronic
communication providing a printed copy ("Electronic Communication") or
may be forwarded by first class prepaid registered mail to the
addresses set forth below.  Any notice delivered or sent by Electronic
Communication shall be deemed to have been given and received at the
time of delivery.  Any notice mailed as aforesaid shall be deemed to
have been given and received on expiration of 72 hours after it is
posted, addressed as follows:

<PAGE>

		Atlantic Security Inc.
		________________
		________________

		Attention: The President
		Facsimile No.: __________________
ARTICLE 4

EXERCISE OF WARRANTS

4.1		Method of Exercise of Warrants

		The right to acquire Common Shares conferred by the
Warrants may be exercised by the Holder of such Warrant by
surrendering the Warrant Certificate representing same, together with
a duly completed and executed Exercise Form in the form attached
hereto and a bank draft or certified cheque payable to the Company at
its principal office in the_______________________________, for the
purchase price applicable at the time of exercise in respect of the
number of Warrants exercised.

4.2		Effect of Exercise of Warrants

(c)	Upon surrender and payment as aforesaid the Common Shares
so subscribed for will be deemed to have been issued and
such person or persons will be deemed to have become the
holder or holders of record of such Common Shares on the
date of such surrender.

(d)	Within ten (10) business days after surrender as aforesaid,
the Company will forthwith cause to be delivered to the
person or persons in whose name or names the Common Shares
so subscribed for are to be issued as specified in such
subscription or mailed to him or them at his or their
respective addresses specified in such subscription, a
certificate or certificates for the appropriate number of
Common Shares not exceeding those which the Warrant Holder
is entitled to acquire pursuant to the Warrant surrendered.

4.3		Subscription for Less Than Entitlement

		The holder of any Warrant may subscribe for and acquire a
number of Common Shares, less than the number which he is entitled to
acquire pursuant to the surrendered Warrant.  In the event of any
acquisition of a number of Common Shares less than the number which
can be acquired pursuant to a Warrant, the holder thereof upon
exercise thereof will in addition be entitled to receive a new Warrant
in respect of the balance of the Common Shares which he was entitled
to acquire pursuant to the surrendered Warrant and which were not then
acquired.

4.4		Warrants for Fractions of Shares

		To the extent that the holder of any Warrant is entitled to
receive on the exercise or partial exercise thereof a fraction of a
Common Share, such right may be exercised in respect of such fraction
only in combination with another Warrant or other Warrants which in
the aggregate entitle the holder to receive a whole number of such
Common Shares.

4.5		Expiration of Warrants

		After the expiration of the period within which a Warrant
is exercisable, all rights thereunder will wholly cease and terminate
and such Warrant will no longer be valid and of no effect.

<PAGE>

4.6		Time of Essence

		Time will be of the essence hereof.

4.7		Adjustments

		The number of Common Shares deliverable upon the exercise
of the Warrants will be subject to adjustment in the event and in the
manner following:

(e)	if and whenever the Common Shares at any time outstanding
are subdivided into a greater or consolidated into a lesser
number of Common Shares the number of Common Shares
deliverable upon the exercise of the Warrants will be
increased or decreased proportionately as the case may be;

(f)	(i) in case of any capital reorganization or of any
reclassification of the capital of the Company or in the
case of the consolidation, merger or amalgamation of the
Company with or into any other Company (hereinafter
collectively referred to as a "Reorganization"), each
Warrant will after such Reorganization confer the right to
acquire the number of shares or other securities of the
Company (or of the Company resulting from such
Reorganization) which the Warrant Holder would have been
entitled to upon Reorganization if the Warrant Holder had
been a shareholder at the time of such Reorganization;

(ii) in any such case, if necessary, appropriate
adjustments will be made in the application of the
provisions of this Article 4 relating to the rights and
interest thereafter of the holders of the Warrants so that
the provisions of this Article 4 will be made applicable as
nearly as reasonably possible to any shares or other
securities deliverable after the Reorganization or the
exercise of the Warrants;

(iii) the subdivision or consolidation of Common Shares at
any time outstanding into a greater or lesser number of
Common Shares (whether with or without par value) will not
be deemed to be a Reorganization for the purposes of this
Section 4.7(f);

(g)	the adjustments provided for in this Section 4.7 are
cumulative and will become effective immediately after the
record date for or, if a record date is fixed, the
effective date of the event which results in such
adjustments.

4.8		Determination of Adjustments

		If any questions will at any time arise with respect to any
adjustment provided for in Section 4.7, such question will be
conclusively determined by the Company's Auditors, or, if they decline
to so act any other firm of chartered accountants, , that the Company
may designate and who will have access to all appropriate records and
such determination will be binding upon the Company and the holders of
the Warrants.

ARTICLE 5

COVENANTS BY THE COMPANY

5.1		Reservation of Shares

		The Company will reserve and there will remain unissued out
of its authorized capital a sufficient number of Common Shares to
satisfy the rights provided for herein and in the Warrants should the
holders of all the Warrants from time to time outstanding determine to
exercise such rights in respect of all Common Shares which they are or
may be entitled to acquire pursuant thereto and hereto.

<PAGE>

5.2		Company may Purchase

		The Company may from time to time offer to purchase and
purchase, for cancellation only, any Warrants in such manner, from
such persons and on such terms and conditions as it determines.

ARTICLE 6

WAIVER OF CERTAIN RIGHTS

6.1		Immunity of Shareholders, Etc.

		The Warrant Holder, as part of the consideration for the
issue of the Warrants, waives and releases and will not have any
right, cause of action or remedy now or hereafter existing in any
jurisdiction against any past, present or future incorporator,
shareholder, director or officer (as such) of the Company for the
issue of Common Shares pursuant to any Warrant or on any covenant,
agreement, representation or warranty by the Company herein contained
or in the Warrant.

ARTICLE 7

MODIFICATION OF TERMS, MERGER, SUCCESSORS

7.1		Modification of Terms and Conditions for Certain Purposes

		From time to time the Company may, subject to the
provisions of these Terms and Conditions, modify the Terms and
Conditions hereof, for the purpose of correction or rectification of
any ambiguities, defective provisions, errors or omissions herein.

7.2		Transferability

		The Warrant and all rights attached to it are not
transferable or assignable.

IN WITNESS WHEREOF ATLANTIC SECURITY INC. has caused this Warrant to
be signed by its duly authorized officers under its corporate seal,
and this Warrant to be dated as of the date of issuance first above
written.

SIGNED BY:

ATLANTIC SECURITY INC.

Per:	______________________________
	Authorized Signatory

Per:	______________________________
	Authorized Signatory

Date:	______________________________

<PAGE>

EXERCISE FORM

TO:	Atlantic Security Inc.

The undersigned holder of Warrants hereby exercises the right to
acquire _____________ Common Shares without nominal or par value of
Atlantic Security Inc. (the "Company") (or such number of other
securities or property to which such Warrants entitle the undersigned
in lieu thereof or in addition thereto under the provisions set forth
in the Warrant Certificate) according to the terms set forth in the
Warrant Certificate.

Such securities or property are to be issued as follows:

Name:
	____________________________________________________________

Address in Full:
	____________________________________________________________

	____________________________________________________________

The undersigned acknowledges that the certificates representing the
Common Shares issuable hereunder shall bear such legends as may be
required under applicable securities law.

DATED this ______ day of ______________________, _____.

	Signature

	(Print full name)

	(Print full address)

Instructions:
The registered holder may exercise his right to acquire Common Shares
by completing the above form, surrendering this Warrant Certificate
and providing payment by bank draft, money order or certified check to
the Company at its principal office in_____________________.  For the
protection of the holder, it would be prudent to register if
forwarding by mail.  Certificates for Common Shares will be delivered
or mailed as soon as practicable after the exercise of the Warrants.
The rights of the registered holder cease if the Warrants are not
exercised prior to 5:00 p.m. (EST) on the Expiry Date

<PAGE>

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