Document:

Longcheng
Industrial Area Common Property Tenancy Contract

    

    Contract
No:      WJ-002

    Lessor
(Party A):       Shenzhen Land & Sun
Industrial & Trade Co., Ltd.

    Lessee(Party
B):        Shenzhen Long Cheng Nissin
Precision Metal Plastic Factory

     
China Bao An Long Cheng Hi-Lite Electronic Factory

    Place:                         Shenzhen
City, Longhua Zhen

    Date:                          4th
July, 2008

    

    In
accordance with The Contract Law of the People’s Republic of China and the
relevant regulations, for the purpose of clarifying the rights and duties of the
lessor and lessee, after negotiation, both parties have come to an agreement and
this contract is made.

    

    Article
One:      Name and Area (by construction floor
area) of the Leased Property:

    

    Party A
provides 35,767.45 square meters factory and 7,282.6 square meters dormitory,
the total construction area is 43,050.05 square meters and land 1,441.72 square
meters (refer attached sheet)

    

    Article
Two:      Payment of Rent and Other
Expenses

    

    Party B
shall pay the rent and management fee in the amount of Rmb601,147.00 to party A
every month.  The rent shall be settled every month.  Party
B shall pay the rent of the month before the 10th day of
the month by cash or by transferring accounts to Party A or by remittance to
Party’s A account.  Rental fee will be increased by 3% per
year.

    

    Article
Three:   Deposit

    

    Party B
shall pay two month’s deposit of rent and management fee in the amount of
Rmb1,202,294 to party A.  After deducting any unpaid rent and
renovation fee from the deposit, Party A shall return the balance to party
B.

    

    Article
Four:     Term of Tenancy

    The term
of this lease is 3 years, starting March 1st, 2009
to February 28th, 2012
with effect on March 1st,
2009.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    Article
Five:      Maintenance of the leased property
during the terms of the lease

    

    During
the terms of this contract, with the approval of Party A to alter the structure
of the leased property, Party B shall be responsible the cost of the
alternation.  It is the responsibility of Party A to maintain the
leased property in good condition.  Party B is responsible for the
maintenance cost of the leased property due to natural damage.

    

    The terms
of maintaining the leased property:

    
      	
              1.

            	
              The
      main structure of the leased property should be kept in good conditions.
      For any change of the structure of the leased property, Party B should get
      the approval from Party A.

            

    

    

    
      	
              2.

            	
              The
      leased property and all accessory facilities cannot be changed and
      damaged.

            

    

    

    
      	
              3.

            	
              The
      doors and glass should be maintained in good conditions. The windows
      should not be painted by any colour
paint.

            

    

    

    
      	
              4.

            	
              To
      ensure the supply of water and electricity is sufficient for the leased
      property. The drainage system and the fire exit should not be
      blocked.

            

    

    

    Article
Six:        Duties for both Party A and
Party B:

    Party A’s
duties:

    
      	
              1.

            	
              To
      deliver the factory, dormitory, apartments, and canteen to Party B as
      scheduled and be responsible for the water supply, road access, and
      electricity supply .

            

    

    

    
      	
              2.

            	
              To
      assist Party B in handling the formalities of obtaining business license,
      tax registration (all necessary expense to be borne by Party
      B)

            

    

    

    
      	
              3.

            	
              During
      the term of this contract, Party A shall use its best endevaours to assist
      Party B in resolving some difficulties in the actual
      operations.

            

    

    

    
      	
              4.

            	
              To
      guarantee the safety from fire, the good hygienic condition of the
      environment and deal with the complaints
  promptly.

            

    

    

    Party B’s
Duties:

    
      	
              1.

            	
              To
      pay the rent and other related expense as
  scheduled.

            

    

    

    
      	
              2.

            	
              To
      be responsible for the water, electricity and other charges for the leased
      factory, apartments, canteen and dormitory (including public facilities
      such as kitchen, etc.)  Party B
      shall also be liable to the maintenance of the leased factory, dormitory,
      apartments, canteen, kitchen and other facilities during the period of
      tenancy (Party A can provide services for
  consideration)

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
              3.

            	
              Party
      B shall, during the term of this lease, comply with the relevant laws,
      orders of China and the relevant regulations and shall obey the unified
      management rules and regulations of the industrial area.  Shall
      not conduct any activities in violation of the laws, damaging the public
      interests or changing the contents stipulated in this
      contract.

            

    

    

    
      	
              4.

            	
              Not
      to sub-lease the leased factory, apartments, dormitory or canteen to a
      third party operator.

            

    

    

    
      	
              5.

            	
              Factory
      owners shall designate a person to be responsible for fire prevention and
      shall establish a fire prevention team of 5-7 persons, install fire
      fighting equipment in the factory as required by the
      regulations.  Fire exits of the factory and dormitory shall not
      be blocked and offenders of this rule will be dealt with as offenders of
      the fire prevention regulations.  The fixed fire fighting
      equipment, water tank, factory owners shall not install iron door in the
      leased factory or dormitory, use the water in the fire-fighting water tank
      and the fire hydrant improperly such as to clean the floor. Offenders
      shall be fined and shall be dealt with according to the fire prevention
      regulations.

            

    

    

    
      	
              6.

            	
              Party
      B shall not, during the term of this lease affect the normal business of
      other factory owners and people when using the public facilities and
      common areas; and shall educate the staff to protect the public property
      and pay compensation according to price if
  damaged.

            

    

    

    
      	
              7.

            	
              If
      Party B alters the leased factory, dormitory, canteen, kitchen and other
      building structure and facilities without the prior consent of Party A,
      Party B shall pay Party A a compensation equivalent to 100% of the value
      of the altered facilities.

            

    

    

    If Party
B is seriously in breach of sub-articles 1,3,4,7, of Article Six (Party B’s
duties), Party A is entitled to dissolve this tenancy relationship, terminate
this tenancy contract, and repossess the property. Party B’s security deposit
shall be forfeited by Party A for no consideration.  Party B shall
bear all the consequences arising there from.

    

    If Party
A is seriously in breach of its duties under Article Six (Part A’s duties) and
does not deal with it promptly, Party B is entitled to investigate and affix
responsibility.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    Article
Seven:   Liabilities of Breach of Contract

    Liabilities
of Party A for breach of this tenancy contract:

    
      	
              1.

            	
              Fail
      to deliver possession of the leased property to the lessee as scheduled in
      contract.

            

    

    

    
      	
              2.

            	
              Fail
      to provide the relevant equipment to lessee as scheduled in
      contract.

            

    

    

    Liabilities
of Party B for breach of this tenancy contract:

    
      	
              1.

            	
              To
      be responsible for the necessary repair or compensation for damage to the
      leased property due to the improper use or maintenance by the
      lessee.

            

    

    

    
      	
              2.

            	
              To
      be responsible for the compensation of all losses arising from the
      unauthorized alterations of the leased property and
    equipment.

            

    

    

    
      	
              3.

            	
              Fail
      to return the leased property according to schedule after terminating the
      contract. Apart from the rent payable, the lessee shall pay the
      contractual penalty.  Penalty for every day of delay is 0.1‰ of
      the monthly rent with a maximum delay of 30
  days.

            

    

    

    
      	
              4.

            	
              Fail
      to pay the rent and expenses as scheduled.  Unless paid on or
      before the due date, penalty shall be calculated according to the total
      outstanding amount owed by the lessee, with 0.1‰ of the total overdue
      amount per day as the overdue
penalty.

            

    

    

    Calculating
method:

    Total
amount of the overdue
penalty          
=         total amount of rent and
expense per month x

     No.
of days overdue x 0.1‰

    

    Party A
has the right to take the following actions if the Party B has breached the
contract according to the situation:

    
      	
              1.

            	
              Impose
      a fine of two month’s rent and expense as the penalty for breach of
      contract;

            

    

    

    
      	
              2.

            	
              Order
      the lessee to move out and surrender the
  factory;

            

    

    

    
      	
              3.

            	
              If
      Party B fails to pay the rent and expense for 2 months, Party A is
      entitled to take legal action against Party B and claims back the entire
      unpaid fees.

            

    

    

    Article
Eight:    Exemption Provision

    

    
      	
              1.

            	
              Party
      B shall not be liable for any repairs or compensations to Party A if the
      damages or losses of the leased property are caused by the force
      majeure.  However, Party B shall report and explain the
      situation to Party A and give the legal documents from the relevant
      departments to Party A if
necessary.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	
              2.

            	
              If
      local Government or the City Development Company requires to tearing down
      the simplification one-floor building, Party A shall give three months
      notice in advance to Party B.  Both parties agreed to terminate
      the rental agreement for the part of simplification one-floor building
      without any responsibility to bear due to the beach of contract and no
      claims to each party can be made for the loss.  If the City
      Development Company requires to tearing down the simplification one-floor
      building, Party A shall provide supplementary non-standardized building
      with the high lower than 7 meters and the area same as the existing
      building to Party B three months in
advance.

            

    

    

    Article
Nine:     Dispute Resolution

    

    If a
dispute arises during the performance of this contract, both parties shall
resolve the dispute through consultation.  If the dispute cannot be
resolved through consultation, the dispute shall be submitted to the authority
in charge of this contract for arbitration or to a People’s Court with competent
jurisdiction for adjudication.

    

    Article
Ten:      Other matters

    
      	
              1.

            	
              During
      the term of this contract, if any party proposes to terminate this
      contract before its expiration, that party shall give a written report to
      the other party 6 months in advance.  If both parties agree
      to the termination after negotiation, this contract may be
      terminated.  The party proposing to terminate this contact shall
      pay the other party 3 months’ rent as penalty for breach of
      contract.

            

    

    

    
      	
              2.

            	
              If
      Party B does not extend this contract after its expiration, Party B shall
      repair and restore the leased property according to the relevant standards
      and pay all the fees.  Then Party B shall return all the
      security deposits to Party B once and for all. If the repair is done by
      Party A, the costs of repair shall be deducted from the
      deposits.

            

    

    

    
      	
              3.

            	
              If
      the lessee wishes to extend the tenancy, the lessee shall submit a written
      application to the lessor within 6 months before the expiration of this
      lease.  The lessee shall have the preferential right to lease
      the property under equal conditions, but a new contract needs to be
      executed by both parties.

            

    

    

    
      	
              4.

            	
              If
      there is any reconstruction of building or new building provided during
      the contractual period which change the agreement like the rental fee,
      rental period and guarantee of the existing contract, both parties shall
      comprise new agreement together.

            

    

    

    
      	
              5.

            	
              Any
      matters not clearly stated in this contract will follow the relevant
      regulations in the Economic Contract Law of the People’s Republic of
      China.  Supplementary regulations may be made by agreement
      between both parties through consultation and such supplementary
      regulations shall have the equal legal effect as this
      contract.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
              6.

            	
              The
      terms of this contract is originally written in Chinese characters. This
      contract is in a form of four copies.  Party A and B have two
      copies respectively having the same legal effect.  It comes into
      effect after it has been signed and stamped by the representative from
      both parties.

            

    

    

    
      
        
          
            
              	
                      Lessor(stamp)

                    	
                      (Chop
      of Shenzhen Land & Sun Industrial & Trade Co.,
    Ltd.)

                    
	
                      Unit
      address:

                    	 
      
	
                      Legal
      Representative:

                    	
                      (Signature)

                    
	
                      Agent:

                    	 
      
	
                      Telephone
      no:

                    	 
      
	
                      Bank
      account:

                    	 
      
	
                      Number
      of bank account:

                    	 
      
	
                      Lessee
      (stamp):

                    	
                      (Chop
      of China Bao An Long Cheng Hi-Lite Electronic Factory)

                    
	 
      	
                      (Chop
      of Shenzhen Long Cheng Nissin Precision
      Metal Plastic
      Factory)

                    
	 
      	 
      
	
                      Unit
      Address:

                    	 
      
	
                      Legal
      Representative:

                    	
                      (Signature)

                    
	
                      Agent:

                    	 
      
	
                      Telephone
      no:

                    	 
      
	
                      Bank
      account:

                    	 
      
	
                      Number
      of bank account:

                    	 
      

            

          

        

      

    

    
      
         

      

      
        6June 17,
2009

    

    

    Ceautamed
Worldwide, LLC

    3604
South Ocean Blvd, # 105

    Highland
Beach, Fl 33487

    Attention: Mr. Ryan Benson, Manager and
Chief Executive Officer

    

    Re: Binding
Letter of
Intent

    

    Dear Mr. Benson:

    

    This binding letter of intent (the “LOI”) is entered into as of June 17, 2009 (the “Effective
Date”) by and between NutraCea, a California corporation
(“NutraCea”) and Ceautamed Worldwide,
LLC, a Delaware limited liability
company (“Ceautamed”) with respect to the acquisition by
Ceautamed of certain assets of NutraCea as described herein.  NutraCea
and Ceautamed are
each referred to herein individually as a
“Party” and collectively as the “Parties.”  This LOI is
intended to form the basis for definitive settlement agreements. Upon execution
hereof, the Parties agree to use their best efforts to negotiate in good faith,
as soon as reasonable, but in any event within fourteen (14) days from the
Effective Date, comprehensive definitive documents and ancillary agreements
(together, the “Transaction Documents”) on terms
consistent in all material respects with the terms set forth in this
LOI.

     

    1.  Proposed
Transaction.  Ceautamed agrees to pay to NutraCea the Purchase
Price as defined in Section 3, in exchange for NutraCea’s assignment and
transfer to Ceautamed (the “Assignment”) of the following:
(i) senior secured convertible promissory notes that Vital Living, Inc., a
Nevada corporation (“Vital
Living”) issued to various investors in December 2003 (“Convertible Secured Notes”) in
the principal amount of approximately $4,226,446 and which NutraCea purchased
for an aggregate purchase price of $4,226,446; (ii) One Million (1,000,000)
Shares of Vital Living’s Series A Preferred Stock, which NutraCea purchased for
$1,000,000 (“Preferred
Stock”); (iii) all of the rights of NutraCea in the action entitled
NutraCea, Inc. v. Vital Living, Inc. in the Superior Court of Arizona, Maricopa
County, Case No. CV2008-021291 alleging causes of action breach of contract,
common count, money lent, specific performance and injunctive relief
(hereinafter the “Action”); and (iv) all of the
rights of NutraCea under the security agreements entered into by and among Vital
Living and the original purchasers of the Convertible Secured Notes
(collectively “Existing
Security Agreement” and together with the Convertible Secured Notes,
Preferred Stock and Action the “Purchased Assets”) whereby
Vital Living granted an undivided senior security interest in each and every
existing or later acquired asset of Vital Living.  NutraCea’s
Assignment will occur at the Closing (as defined in Section 8) and will be
without representations or warranties of any type or nature.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2.  Purchase
Price.  The purchase
price (“Purchase Price”)
shall be the total of Three Million Six Hundred Thousand Dollars
($3,600,000.00), plus the Earn Out (as defined below), which shall consist of
(i) a Two Hundred Thousand Dollar ($200,000) Deposit (as described below), (ii)
the issuance by Ceautamed of a Promissory Note in the original principal amount
of Three Million Four Hundred Thousand Dollars ($3,400,000) having terms and
conditions as set forth in Section 4 (“Promissory Note”), and (iii)
the Earn Out payments pursuant to Section 3.2.

     

    3.      
Deposit and Earn
Out.

     

    3.1.    Deposit.  On
the Effective Date of this LOI, Ceautamed shall deliver by wire transfer Two
Hundred Thousand Dollars ($200,000.00) to Weintraub Genshlea Chediak, to hold as
agent for NutraCea as a good faith deposit (the “Deposit”). The Deposit shall
be applied to the Purchase Price at Closing. If the Closing does not occur
within fourteen (14) days of the Effective Date then the deposit shall be
returned to Ceautamed unless the parties mutually agree to extend the period of
time for the negotiations. The Parties agree that upon execution of definitive
Transaction Documents, the Deposit will be applied to the Purchase Price
pursuant to the terms and conditions of the definitive Transaction Documents.
This LOI shall not be effective unless the Deposit is delivered by Ceautamed as
and when provided in this Section 3.

     

    3.2.    Earn
Out.  For a total term
of one hundred and twenty (120) consecutive months commencing on the month
following the three-year anniversary of the Closing, Ceautamed agrees to pay to
NutraCea ten percent (10%) of the gross earnings and revenues of Ceautamed and
shall comprise a portion of the Purchase Price (the “Earn Out”). Each monthly Earn
Out payment shall be paid directly from the Lockbox accounts established
pursuant to Section 6 and shall be accompanied by a monthly detailed report of
the Earn Out calculation.  NutraCea shall have rights to conduct
periodic audits to verify Ceautamed’s compliance with the terms of this
LOI.

     

    4.  Promissory
Note.  The principal amount of the Promissory Note shall be
paid to NutraCea in thirty-four (34) consecutive principal monthly installments
(“Monthly Payments”) of
One Hundred Thousand Dollars ($100,000) each, the first Monthly Payment being
due and payable on August 15, 2009 , with each successive Monthly Payment being
due and owing on the fifteenth (15th) day of each month thereafter until paid in
full. The Promissory Note shall accrue interest at an annual rate equal to (i)
the prime lending rate (Wells Fargo San Francisco main branch) plus one percent
(1%), but not
at any time (ii) less than an interest rate of two and one half percent (2.5%)
or greater (other than due to the default interest rate) than an interest rate
of six percent (6%). The interest rate shall adjust annually. All interest
accrued hereunder shall be paid in the following manner: 50% of the interest
shall be paid on the one month anniversary of the 34th Monthly
Payment due date (the “First Interest Payment”), with the remaining 50% being
paid on the one month anniversary of the First Interest Payment due
date.  In the event of any default under the Promissory Note a default
rate of the lower of an additional five percent (5%) or the maximum rate
permitted by applicable law will accrue on all unpaid principal and
interest.  Without in any manner limiting or conditioning the
foregoing, the Promissory Note shall provide for written notice from NutraCea to
Ceautamed of any default thereunder by Ceautamed, with thirty (30) calendar
days’ opportunity to cure any non-monetary default from such written notice and
fourteen (14) calendar days’ opportunity to cure any monetary default from such
written notice before NutraCea may proceed against any Collateral (as defined in
Section 5 below). The Promissory Note shall provide that a default event shall
occur (a “Default
Event”) if any default items customary in a commercial lending
transaction occurs, including without limitation one of more of the following:
(i) subject to the cure periods set forth above, any amounts owing under the
Promissory Note are not paid to NutraCea as and when due; (ii) Ceautamed does
not hold or obtain within thirty  (30) days of Closing all of the
rights in all of the Collateral or transfers or assigns any of its assets
without the prior written consent of NutraCea; or (iii) Ceautamed breach’s any
term of any of the Transaction Documents. At the Closing, Stuart Benson
(“Benson”) shall personally guarantee the full and timely payment of all amounts
due under the Promissory Note until the Collateral has been transferred to
Ceautamed at which point Benson’s personal guarantee (“Personal Guarantee”) will
be terminated and be of no force and effect.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5.  Secured
Collateral.  The Promissory
Note and all of the obligations (collectively the “Obligations”) with regard to
these transactions shall be secured by a first priority security interest in all
of the assets of Ceautamed, all of the assets owned by Vital Living, Inc. a
Nevada corporation (“Vital
Living”) encumbered by the Existing Security Agreement, and, without
limiting in any manner the foregoing, in all rights, title and interest in the
products (“Products”)
and trademarks listed on Exhibit A hereto,
including without limitation (i) the Purchased Assets; (ii) all of the inventory
of such Products owned by Vital Living or Ceautamed, and (iii) all of
Ceautamed’s and Vital Living’s contractual rights and entitlements with regard
to the distribution channels for such products; and (iv) all manufacturing
rights for the Products (“Collateral”). The Collateral
includes all of such assets, whether existing at Closing or thereafter or owned
at Closing or thereafter acquired and wherever located, of every kind and
description, tangible or intangible, including, but not limited to, all goods,
equipment, inventory, documents, accounts, deposit accounts, chattel paper,
instruments, investment property, money, general intangibles (including, but not
limited to, intellectual property and all rights relating to such intellectual
property including trademarks), credits, claims, demands and any other property,
rights and interests, all substitutions and replacements therefor and all
products and proceeds thereof, new value thereof or proceeds of insurance
thereon.  NutraCea shall be entitled to file and record a UCC-1 Lien
on the Collateral and hold an interest in all cash and cash equivalents as
provided herein. Any other liens against the Collateral must be subordinated in
right and in time to all obligations to NutraCea and any proposed subordinate
lender must execute a subordination agreement with NutraCea in a form acceptable
to NutraCea as a condition to granting any security interest in the Collateral
to any person or entity other than NutraCea.

     

    6.  Collateral
into Ceautamed; Lockbox Agreement.  All payments made
to Ceautamed for goods or services provided by Ceautamed shall be deposited in
one or more bank accounts in the name of Ceautamed of a single bank acceptable
to NutraCea pursuant to a “lockbox” form of agreement (“Lockbox”) that safeguards and
provides for timely and full payment of all amounts payable to NutraCea under
the Promissory Note and the Earn Out Payments, and with commercially standard
terms and conditions for “lockbox” types of arrangements. Notwithstanding the
foregoing, subject to Ceautamed’s right to use the funds in the LockBox to pay
for the manufacturing of the Product prior to September 30, 2009, the Lockbox
agreement shall provide that for each month beginning October 1, 2009 as long as
Ceautamed is current on its Promissory Note payment and Earn Out payment, and it
is retaining a sufficient amount, determined on a proportional basis over the
month for payment of the Promissory Note payment and Earn Out payment, Ceautamed
shall have discretion to use all funds in excess of such reserved amounts in any
manner whatsoever.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    7.  Stipulated
Judgment;Forum Selection.  NutraCea shall be entitled to
initiate a lawsuit in the State or Federal Courts located in Sacramento County,
State of California (“Lawsuit”) and upon the
Closing, a fully executed stipulated judgment (“Stipulated Judgment”) shall
be executed by Ceautamed, which will provide for the immediate and final
foreclosure of all of the Collateral in favor of NutraCea and obligate immediate
repayment of any deficiency between (i) the outstanding balance due on the
Promissory Note, plus any unpaid portion of the Earn Out amount, and (ii) the
realizable value of the Collateral upon the occurrence of any of the Default
Events described above.  The Parties consent to the personal
jurisdiction of the State and Federal courts located in the State of California
in connection with any Lawsuit initiated by any Party related to this LOI or the
Transaction Documents, waive any argument that venue in such forum is not
appropriate, and agree that the Lawsuit shall be venued in either the State or
Federal courts located in Sacramento County, State of California.

     

    8.       
Closing;
Conditions to Closing.

     

    8.1.    Closing.
The closing of the transactions contemplated by this binding LOI and (the “Closing”) will occur promptly
upon satisfaction or waiver of all closing conditions, but within all events not
later than fourteen (14) days after the Effective Date of this LOI (“Closing Date”).

     

    8.2.    Conditions
to Closing.  Each Party’s
obligation to complete the Closing
shall be conditioned upon the satisfaction of (or written waiver of) each of the
following conditions precedent, each of which conditions the other Parties shall
use their good faith best efforts to satisfy:

     

    (a)           On
the Closing Date, all actions, proceedings, instruments and documents required
to effectuate the Assignment and all other related matters, including those set
forth herein, shall have been completed to the reasonable satisfaction of the
Parties’ hereto and their counsel;

     

    (b)           The
Parties shall obtain the written consent of all third parties necessary to
consummate the transaction;

     

    (c)           No
action, claim or proceeding shall have been brought or threatened against any
Party seeking to challenge or prohibit the transactions contemplated hereby or
claims any rights to any of the Collateral;

     

    (d)           NutraCea’s
board of directors and Ceautamed’s board of directors shall have approved the
transaction on the terms set forth in the Transaction Documents;

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    (e)           No
material adverse changes shall have occurred since the Effective Date
in the
condition of the Collateral or shall exist at the time of the
Closing.

     

     

    9.  Pre-Closing
Operations. Prior to the Closing, Vital Living will operate the Vital
Living business in good faith and substantially in accordance with the manner of
operations prior to this date.  In the event the Closing does not
occur within fourteen (14) days after the Effective Date of this LOI, each Party
shall have the option to terminate this LOI and, upon such election, shall have
no further obligations under this LOI.  Prior the Closing, but subject
to Ceautamed’s compliance with all terms of this LOI, Ceautamed shall purchase
from NutraCea and NutraCea, shall sell to Ceautamed, NutraCea’s entire “usable”
Product inventory at NutraCea’s cost.

    

    10.  “As is”
Assignment; No Representations or Warranties.  The Parties
expressly agree and acknowledge that the Assignment will be an “as is” transfer
of any and all of NutraCea’s rights in the Purchased Assets and that NutraCea
makes and will make no representations or warranties with respect to any of the
assigned rights or interests. NutraCea, Ceautamed and Benson (as it relates to
the Personal Guaranty) shall each represent and warrant to the other that the
Transactional Documents are duly authorized by each party and will establish
binding obligations of the parties.

     

    11.  Mutual
Releases.  The Transaction Documents shall include mutual
general releases (the “Releases”) executed by NutraCea, Ceautamed, Benson and by
Vital Living in favor of each other and each of the parties’ officers,
directors, attorneys, and employees, arising out of any claim, known or unknown:
(i) that was asserted or should have been asserted in the Action (and all
counter-claims), (ii) related to the Purchased Assets and the acquisition by
NutraCea related thereto, and (iii) the operation of the business of Vital
Living and NutraCea prior to the Closing; provided however, the Releases shall
expressly exclude the Obligations set forth in this LOI and Vital Living’s
obligations under the Purchased Assets; and provided further that any release of
Vital Living, Ceautamed and Benson shall be conditioned upon and subject to the
transfer of all of the Collateral to Ceautamed and the establishment of a first
priority lien in the Collateral in favor of NutraCea. Each Party shall pay its
own attorneys’ fees and costs arising out of the Action, the LOI and the
preparation of the Transaction Documents.  Nothing in this Section 11
shall affect any of the future rights or obligations of the Parties related to
the transaction contemplated herein.

    

    12.  No Other
Discussions.  From the date of
this LOI and continuing for a period of fourteen (14) days or a later date if
mutually agreed in writing (the “Exclusive Period”), NutraCea
will not solicit, initiate, or encourage submission of any proposals or offers
from any corporation, partnership, persons or group relating to any acquisition,
purchase or option to purchase the Purchased Assets.

    

    13.  Non-Disclosure.  The Parties agree
that, without the prior written consent of the other Party, each Party and its
directors, officers, employees, agents or advisors (including, without
limitation, attorneys, accountants, consultants, bankers and financial advisors)
(collectively, "Representatives"), will not
disclose to any other person (except to employees and professional advisors on a
need to know basis) any confidential and proprietary information of the other
promisor disclosed during the negotiation or completion of this transaction,
provided that a Party may make such disclosure if, (i) in the reasonable opinion
of outside counsel for such Party, such disclosure is required by law,
regulation or any exchange, market or automated quotation system on which any
Party’s securities are listed or quoted, and (ii) each Party is provided at
least two (2) business days prior to such disclosure a full copy of the proposed
disclosure and opportunity to comment on and discuss any items included
therein.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    14.  Ceautamed
Representations. Ceautamed hereby represents and warrants that no current
or former officer or director of NutraCea has any direct, indirect or beneficial
ownership interest, affiliation or involvement whatsoever (including as an
officer, director, employee, consultant, agent or otherwise) in
Ceautamed.

    

    15.      Miscellaneous.  This
LOI shall be governed by and construed under the laws of the State of California
(excluding its choice of law rules).  This LOI may be delivered by facsimile and
facsimile signatures will be considered and construed as valid as an original
signature.  This LOI may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more such counterparts have been signed by
each of the parties and delivered to the other party.

    

    This LOI
shall be considered accepted by all of the Parties and effective as of the
latest date signed by any of the Parties, as indicated below. If the foregoing
is acceptable, please obtain the signatures of all Parties and return a copy of
this LOI.

    

    NUTRACEA,

    a
California corporation

    

    By:_______________________________

    (Jim Lintzenich)

    Its:
Chief Executive Officer

    

    

    ACKNOWLEDGED
AND AGREED:

    

    CEAUTAMED WORLDWIDE, LLC,

     a Delaware limited liability
company

    

    

    By:_______________________________

    (Ryan Benson)

    Its:
Manager and Chief Executive Officer

    

    
      
        
        

      

      
        6

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