Document:

Exhibit 10.50

    
      

    

    Exhibit
      10.50

    

    RESALE
      RESTRICTION AGREEMENT

    

    NUTRACEA,
      a California corporation (“NutraCea”)
      and
      __________ (“Shareholder”),
      agree, as of September 30, 2005, as follows:

    

    1.            
      Background
      and Purpose.
      NutraCea, Red Acquisition Corporation, a Delaware corporation and wholly-owned
      subsidiary of NutraCea (“Merger
      Sub”),
      and
      The RiceX Company, a Delaware corporation (“RiceX”),
      are
      parties to that certain Agreement and Plan of Merger and Reorganization
      (“Merger
      Agreement”)
      dated
      as of April 4, 2005, which provides for the merger (“Merger”)
      of
      Merger Sub into RiceX and for RiceX to thereafter be a wholly owned subsidiary
      of NutraCea. Shareholder is the holder of shares of NutraCea common stock and/or
      warrants to purchase shares of NutraCea common stock and will receive
      significant benefits from the combination of NutraCea and RiceX in the Merger.
      In connection with the Merger, NutraCea and Shareholder desire to enter into
      this Resale Restriction Agreement (“Agreement”)
      on the
      terms set forth below. NutraCea and Shareholder shall not be required to perform
      their obligations under this Agreement until the effective time of the
      Merger.

    

    2.            
      Resale
      Restriction.
      Except
      as set forth in Section 3 below, Shareholder agrees that, without the express
      prior written consent of NutraCea, Shareholder will not offer, sell, make any
      short sale of, loan, grant any option for the purchase of, or otherwise dispose
      of (the "Resale
      Restrictions"),
      any
      securities of NutraCea beneficially owned or otherwise held by Shareholder
      immediately following the Merger (collectively, the "Shares")
      until
      December 31, 2007 (the "Lock-up
      Period").
      The
      Resale Restrictions shall apply regardless of whether Shareholder is an employee
      or Director of NutraCea.

    

    3.            
      Permitted
      Transfers.
      Notwithstanding the provisions of Section 2 above, Shareholder may transfer
      (subject to the terms of any option or warrant agreement) any or all of the
      Shares either during Shareholder’s lifetime or on death by will or intestacy to
      Shareholder’s immediate family or to a trust the beneficiaries of which are
      exclusively Shareholder and/or a member or members of Shareholder’s immediate
      family; provided,
      however,
      that in
      any such case it shall be a condition to the transfer that the transferee
      execute an agreement stating that the transferee is receiving and holding the
      Shares subject to the provisions of this Agreement, and there shall be no
      further transfer of such Shares except in accordance with this Agreement. For
      purposes of this Agreement, "immediate family" shall mean spouse, lineal
      descendant, father, mother, brother or sister of the transferor. In addition,
      notwithstanding the provision of Section 2 above, Shareholder may pledge or
      hypothecate shares of NutraCea common stock held beneficially or of record
      by
      Shareholder and Shareholder may net exercise any options or warrants that are
      held by Shareholder pursuant to a net exercise provision as long as 100% of
      the
      shares received pursuant to the transaction are subject to this
      agreement.

    

    4.            
      Stock
      Transfer Instructions.
      Shareholder agrees and consents to the entry of stop transfer instructions
      with
      the transfer agent for NutraCea’s common stock against any transfer of shares of
      NutraCea’s common stock by Shareholder in contravention of the Resale
      Restrictions.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    5.            
      Miscellaneous.

    

    5.1.          Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties regarding the
      matters contained herein, all oral agreements being merged herein, and supersede
      all prior representations. There are no representations, agreements,
      arrangements, or understandings, oral or written, between or among the parties
      relating to the subject matter of this Agreement that are not fully expressed
      herein and therein. Notwithstanding the foregoing, this Agreement shall not
      modify or limit any other agreement by which Shareholder is bound that restricts
      the transfer by Shareholder of NutraCea securities. 

    

    5.2.          Amendment.
      This
      Agreement may be amended by the parties hereto at any time by execution of
      an
      instrument in writing signed on behalf of each of the parties hereto.

    

    5.3.          Waiver.
      Any
      waiver of the terms or conditions of this Agreement may be waived at any time
      by
      the party entitled to the benefit thereof, but no such waiver shall affect
      or
      impair the right of the waiving party to require observance, performance or
      satisfaction either of that term or condition as it applies on a subsequent
      occasion or of any other term or condition.

    

    5.4.          Nonassignability.
      This
      Agreement shall not be assigned by Shareholder without the prior written consent
      of NutraCea. Any assignment contrary to the provisions of this Agreement shall
      be deemed a default under this Agreement, allowing NutraCea to exercise all
      remedies available under law.

    

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

    

    5.6.          Notices.
      Any
      notice under this Agreement shall be in writing, and any written notice or
      other
      document shall be deemed to have been duly given (i) on the date of personal
      service on the parties, (ii) on the third business day after mailing, if the
      document is mailed by registered or certified mail, (iii) one day after being
      sent by professional or overnight courier service or messenger service
      guaranteeing one-day delivery, with receipt confirmed by the courier, or (iv)
      on
      the date of transmission by telegram, telex, telecopy or other means of
      electronic transmission resulting in written copies, with receipt confirmed.
      Any
      such notice shall be delivered or addressed to the parties at the addresses
      set
      forth below or at the most recent address specified by the addressee through
      written notice under this provision. Failure to conform to the requirement
      that
      mailings be done by registered or certified mail shall not defeat the
      effectiveness of notice actually received by the addressee.

    

    5.7.          Attorneys'
      Fees; Prejudgment Interest.
      If the
      services of an attorney are required by any party to secure the performance
      of
      this Agreement or otherwise upon the breach or default of another party to
      this
      Agreement, or if any judicial remedy or arbitration is necessary to enforce
      or
      interpret any provision of this Agreement or the rights and duties of any person
      in relation thereto, the prevailing party shall be entitled to reasonable
      attorneys' fees, costs and other expenses, in addition to any other relief
      to
      which such party may be entitled. Any award of damages following judicial remedy
      or arbitration as a result of the breach of this Agreement or any of its
      provisions shall include an award of prejudgment interest from the date of
      the
      breach at the maximum amount of interest allowed by law.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

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

    

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

    

    5.10.        Severability.
      If any
      provision of Agreement is held by a court of competent jurisdiction to be
      invalid or enforceable, the remainder of the Agreement which can be given effect
      without the invalid provision shall continue in full force and effect and shall
      in no way be impaired or invalidated.

    

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

    

    

    
      	
              NUTRACEA

            	 	
              SHAREHOLDER

            
	 	 	 
	 	 	 
	
              Patricia
                McPeak, Chief Executive Officer

            	 	
              [____________]

            
	 	 	 	 	 
	
              Address:

            	
              1261
                Hawks’ Flight Court

            	 	
              Address:

            	 
	 	
              El
                Dorado Hills, CA 95762

            	 	 	 
	
              Facsimile:

            	
              (916)
                933-7001

            	 	
              Facsimile:
                

            	(___)
              ___-____

    

     

    
       

      3AMENDED PROMISSORY NOTE

$4,480,000                                                        August 1, 2005

     After date, without grace, for value received, ZANN CORP., a Nevada
corporation (the "Maker") hereby promises to pay to the order of CHARLES DUKE
and JONATHON DEREK SELTZER, jointly (collectively, the "Payee") the original
principal amount of $4,480,000 bearing no interest. All payments of principal
hereunder are payable in lawful money of the United States of America c/o Donald
J. Harrell, Esq. at 1776 Ringling Boulevard, Sarasota, Florida 34236, or such
other place as the Payee may designate in writing to the Maker.

     The principal of this Note shall be due and payable as follows:

     (a)     $620,000 on December 31, 2005;

     (b)     $1,060,000 on March 31, 2006; and

     (c)     $2,800,000 on August 7, 2006.

     If this Note is not paid at maturity, however maturity may be brought
about, all principal due on the date of such maturity shall bear interest from
the date of such maturity at the rate of six percent per annum.

     Any interest on this Note shall be computed for the actual number of days
elapsed and on the basis of a year consisting of 360 days, unless the maximum
legal interest rate would thereby be exceeded, in which event, to the extent
necessary to avoid exceeding such maximum rate, interest shall be computed on
the basis of the actual number of days elapsed in the applicable calendar year
in which it accrued. It is the intention of the Maker and the Payee to conform
strictly to applicable usury laws. It is therefore agreed that (i) the aggregate
of all interest and other charges constituting interest under applicable law and
contracted for, chargeable or receivable under this Note or otherwise in
connection with this loan transaction, shall never exceed the maximum amount of
interest, nor produce a rate in excess of the maximum contract rate of interest
the Payee may charge the Maker under applicable law and in regard to which the
Maker may not successfully assert the claim or defense of usury, and (ii) if any
excess interest is provided for, it shall be deemed a mistake and the same shall
be refunded to the Maker or credited on the unpaid principal balance hereof and
this Note shall be automatically deemed reformed so as to permit only the
collection of the maximum legal contract rate and amount of interest.

     This Note may be prepaid in whole or in part at any time without premium or
penalty by the Maker. Prepayments shall be applied to installments of principal
in the inverse order of maturity so that they will pay the last maturing
principal installments first, and these payments will not reduce the amount or
time of payment of the remaining installments.

     Except as provided herein, the Maker and each surety, endorser, and
guarantor waives all demands for payment, presentations for payment, notices of
intention to accelerate maturity, notices of acceleration of maturity, protests,
notices of protest, grace, and diligence in the collection of this

                                      - 1 -
<PAGE>
Note, and in filing suit hereon, and agrees that its liability for the payment
hereof shall not be affected or impaired by any release or change in the
security or by any extension or extensions of time of payment.

     Any check, draft, money order or other instrument given in payment of all
or any portion of this Note may be accepted by the Payee or any other holder
hereof and handled in collection in the customary manner, but the same shall not
constitute payment hereunder or diminish any rights of the Payee or any other
holder hereof, except to the extent that actual cash proceeds of such instrument
are unconditionally received by the Payee or any other holder hereof and applied
to the indebtedness as herein provided.

     In the event of default in the payment of this Note or under any instrument
executed in connection with this Note, the Maker agrees to pay on demand all
costs incurred by the Payee (i) in the collection of any sums, including, but
not limited to, principal, interest, expenses, and reimbursements due and
payable on this Note, and (ii) in the enforcement of the other terms and
provisions of this Note or any instrument security payment of this Note, whether
such collection or enforcement be accomplished by suit or otherwise, including
the Payee's reasonable attorney's fees.

     It is agreed that time is of the essence of this Note, and upon the failure
of the Maker to cure an event of default within 30 days after receipt of notice
from the Payee or other holder of such failure, the Payee may declare the whole
sum of the principal of this Note remaining at the time unpaid, together with
the accrued interest, charges, and, to the extent permitted under applicable
law, costs and reasonable attorney's fees incurred by the Payee in collecting or
enforcing the payment thereof, immediately due and payable without further
notice, and failure to exercise said option shall not constitute a waiver on the
party of the Payee of the right to exercise the same at any other time.

     Any check, draft, money order or other instrument given in payment of all
or any portion of this Note may be accepted by the Payee or any other holder
hereof and handled in collection in the customary manner, but the same shall not
constitute payment hereunder or diminish any rights of the Payee or any other
holder hereof, except to the extent that actual cash proceeds of such instrument
are unconditionally received by the Payee or any other holder hereof and applied
to the indebtedness as herein provided.

     This Note is expressly subject to and governed by all of the terms and
conditions contained in that certain Stock Purchase Agreement dated June 27,
2005 (the "Stock Purchase Agreement") by and between Robert C. Simpson
("Simpson"), or ZANN Corp., as his nominee, and the Payee, the controlling
stockholders of Sartam Industries, Inc., a Florida corporation ("Sartam"), that
certain Escrow Agreement dated of even date therewith by and between Simpson and
the Payee and Burgess, Harrell, Mancuso, Olson & Colton, P.A., and the
Consulting Agreements described in the Stock Pledge Agreement. In addition, the
payment of this Note is secured by and subject to that certain Stock Pledge
Agreement of even date therewith (the "Stock Pledge Agreement") by and between
Simpson and the Payee covering 1,795,250 shares of the issued and outstanding
common stock, par value $0.01 per share, and 164,601 shares of the issued and
outstanding convertible preferred stock, second series, par value $0.01 per
share, in Sartam (collectively, the "Sartam Stock"). It is understood and agreed
that on July __, 2005, Simpson assigned to ZANN Corp., the Maker herein, as
provided in the Stock Purchase Agreement (the "Assignment"), all of his right,

                                      - 2 -
<PAGE>
title, and interest in and to the Sartam Stock. As a result of the Assignment,
Simpson was relieved of any and all liability with respect to this Note, the
Stock Purchase Agreement, the Stock Pledge Agreement, the Escrow Agreement, the
Consulting Agreements, or any other instrument or obligation in connection
therewith, and all provisions of this Note, the Stock Purchase Agreement, the
Stock Pledge Agreement, the Escrow Agreement, the Consulting Agreements are
deemed to have been so modified.

     In the event of any conflict between the terms of this Note, the Stock
Purchase Agreement, the Stock Pledge Agreement, the Escrow Agreement, and the
Consulting Agreement, the terms of the Stock Purchase Agreement shall control.
However, as above described, the Assignment provided that ZANN Corp. was fully
substituted for Simpson with respect to this Note, the Stock Purchase Agreement,
the Stock Pledge Agreement, the Escrow Agreement, the Consulting Agreements, or
any other instrument or obligation in connection therewith.

     It is further agreed between the Maker and the Payee that as of the date
hereof, the above described Consulting Agreements have been terminated and are
of no further force or effect in consideration of the execution of this Note.

     This Note is given in renewal and extension of the sum of $4,480,000 left
owing and unpaid by the Maker upon that one certain promissory note in the
original sum of $4,480,000, dated June 27, 2005, executed by Simpson, and
payable to the order of the Payee, more fully described in and secured by a
security interest described in the Stock Pledge Agreement covering the Sartam
Stock, which security interest is hereby expressly acknowledged by the Maker to
be a valid and subsisting security interest against the Sartam Stock, and it is
expressly agreed that said security interest is hereby, renewed, extended, and
continued in full force and effect to secure the payment of this Note.

     This Note shall be governed by and construed in accordance with the laws of
the State of Florida and applicable federal law.

ZANN CORP.

By:
    ------------------------------
Robert C. Simpson, President

----------------------------------            ----------------------------------
CHARLES DUKE (Payee)                          JONATHAN DEREK SELTZER (Payee)

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