Document:

FARM AND RANCH CONTRACT

    
      

    
Exhibit
    10.19
    
      

    

     

    Gordon
      & Mott P.C.

    
      
        	 	
                 PROMULGATED
                  BY THE TEXAS REAL ESTATE
                  COMMISSION (TREC)

              	
                 01-06-03 

              

      

       

      FARM
        AND RANCH CONTRACT

      

        
          	1.	
                  PARTIES: Roberto
                    H. Silvas
                    (Seller) agrees to sell
                    and convey to Valcent
                    Products,
                    Inc. C/o
                    Gordon & Mott,
                    P.C.
                    (Buyer) and Buyer
                    agrees to buy from Seller the Property described
                    below.

                

        

         

        
          	2.	
                  PROPERTY:
                    The land, improvements, accessories and crops are collectively
                    referred to
                    as the "Property".
                    

                

        

        
          	
                	A.	
                  LAND:
                    The land situated in El
                    PasoCounty,
                    Texas, described as follows:

                

        

        Tracts
          10B and 10B1, Block 20,
          consisting of approximately 6.01 acres, more or less, together with
          all irrigation
          rights and access to irrigation ditches in connection with the Property,
          as
          shown
          on Exhibit "A"
          attached
          hereto.

        

          or
            as
            described on attached exhibit, also known as 328
            Vinton Road, Vinton, El Paso County, 
            (address/zip
            code), together with all rights, privileges, and appurtenances pertaining
            thereto, including but not limited to: water rights, claims, permits,
            strips and
            gores, easements, and cooperative or association memberships.

        

        
           

          
            	
                  	B.	
                    IMPROVEMENTS:

                  

          

          
            	
                  	(1)	
                    FARM
                      and RANCH IMPROVEMENTS: The following permanently installed and
                      built-in items, if any: windmills, tanks, barns, pens, fences,
                      gates,
                      sheds, outbuildings, and corrals.

                  

          

           

          
            	
                  	C.	
                    NOT
                      PART OF CONTRACT

                  

          

           

          
            	
                  	D.	
                    CROPS:
                      Unless otherwise agreed in writing, Seller has the right to
                      harvest all
                      growing crops until delivery of possession of the
                      Property.

                  

          

           

          
            
              	 	E.	
                      EXCLUSIONS:
                        The following improvements, accessories, and crops will be
                        retained by
                        Seller and excluded: N/A

                    

            

            
              
                	 N/A
	 N/A
	 N/A

              

               

              
                	
                      	F.	
                        RESERVATIONS:
                          Seller reserves
                          the following
                          mineral,
                          water, royalty,
                          timber, or
                          other
                          interest: N/A

                      

              

            

            
              	 N/A
	 N/A
	 N/A

            

          

        

      

    

     

    
      
        
          
            	 Initialed
                    for identification by Buyer, /s/
                    PAM and Seller, /s/
                    RS  
                    Form
                      produced by Realty One Saltware, PO Box 2489, Amarillo,
                      TX 79105, (806) 342-0217

                  	
                    01A TREC
                      NO. 25-4

                  

          

        

         
          

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	 Farm
              and Ranch Contract	
               328 Vinton Road, Vinton,
                El Paso County,,

            	
               Page Two 01-06-03 

            
	 	
               (Address
                of
                Property)

            	 

    

     

    
      	3.	
              SALES
                PRICE:

            

    

    
      	
               A.

            	 Cash
              portion of Sales Price payable by Buyer at closing	
               $ 50,000.00

            
	
               B.

            	 Sum
              of all financing described below (excluding any loan funding
              fee or mortgage insurance premium)	
               $190,000,00

            
	
               C.

            	 Sales
              Price (Sum of A and B)	
               $240,000,00

            

    
      
        	
              	D.	
                The
                  Sales Price owill
x
                  not be adjusted
                  based on the survey required by Paragraph 6C.  If the Sales
                  Price is adjusted, the Sales Price will be calculated on the basis
                  of $
                  N/A.  per acre. If the Sales Price is
                  adjusted by more than 10%, either party may terminate this contract
                  by
                  providing written notice to the other party
                  within N/A days after the terminating party
                  receives the survey. If neither party terminates this contract
                  or if the
                  variance is 10% or less, the adjustment will be made to the amount
                  in
                  q
                  3A q3B
                  q proportionately to
                  3A
                  and 3B.

              

      

    

     

    
      
        
          	4.	
                  FINANCING:
                    The portion of Sales Price not payable in cash will be paid as
                    follows:
                    (Check applicable boxes below)

                

        

      

    

    
      	
            	
              x

            	
              A.
                THIRD PARTY FINANCING: One or more third party mortgage loans in
                the total amount of $190,000.00 .
                If the Property does not satisfy the lenders' underwriting requirements
                for the loan(s), this contract will terminate and the earnest money
                will
                be refunded to Buyer. (Check one box
                only)

            

    

    
      	
            	q	
              (1)This
                contract is subject to Buyer being approved for the financing described
                in
                the attached Third Party Financing Condition
                Addendum.

            

    

    
      	
            	q	
              (2)
                This contract is not subject to Buyer being approved for
                financing.

            

    

    
      	
            	q	
              B.
                ASSUMPTION: The assumption of the unpaid principal balance of one
                or more promissory notes described in the attached TREC Loan Assumption
                Addendum.

            

    

    
      	
            	q	
              C.
                SELLER FINANCING: A promissory note from Buyer to Seller of
                N/A
                bearingN/A%
                interest per annum, secured by vendor's and deed of trust liens,
                and
                containing
                the terms and conditions described in the attached TREC Seller Financing
                Addendum. If an owner policy of title insurance is furnished, Buyer
                shall
                furnish Seller with a mortgagee policy of title
                insurance.

            

    

     

    
      
        	5.	
                EARNEST
                  MONEY:
                  Upon execution of this contract by both parties, Buyer shall deposit
                  $3,000.00 
                  as
                  earnest money with Del
                  Norte Title Company (Susan Hutsell) as
                  escrow agent, at 320
                  Texas, El Paso, Texas
                  79901 _
                  (address). Buyer
                  shall deposit additional earnest money of $N/A
                  with escrow agent within  N/Adays
                  after the effective date of this contract, If Buyer fails to deposit
                  the
                  earnest money
                  as required by this contract, Buyer will be in
                  default.

              

      

    

     

    
      	6.	
              TITLE
                POLICY AND SURVEY:

            

    

    
      	
            	A.	
              TITLE
                POLICY: Seller shall furnish to Buyer at qSeller's
                xBuyer's
                expense an owner policy of title insurance (Title Policy) issued
                by
                Del
                Norte Title Company 
                (Title Company) in
                the amount of the Sales
                Price,
                dated at or after
                closing,
                insuring
                Buyer
                against loss under the provisions of the Title Policy, subject to
                the
                promulgated exclusions (including existing building and zoning ordinances)
                and the following exceptions:

            

    

    
      	
            	(1)	
              The
                standard printed exception for standby fees, taxes and
                assessments.

            

    

    
      	
            	(2)	
              Liens
                created as part of the financing described in Paragraph
                4.

            

    

    
      	 	
              (3)

            	
              Reservations
                or exceptions otherwise permitted by this contract or as may be approved
                by Buyer in writing.

            

    

    
      	 	
              (5)

            	
              The
                standard printed exception as to waters, tidelands, beaches, streams,
                and
                related matters.

            

    

    
      	 	
              (6)

            	
              The
                standard printed exception as to discrepancies, conflicts, shortages
                in
                area or boundary lines, encroachments or protrusions, or overlapping
                improvements. Buyer, at Buyer's expense, may have the exception amended
                to
                read, "shortages in area".

            

    

    
      	 	
               

              B.

            	
               

              COMMITMENT:
                Within 20 days after the Title Company receives a copy of this contract,
                Seller shall furnish to Buyer
                a
                commitment for title insurance (Commitment) and, at Buyer's expense,
                legible copies of restrictive covenants and documents evidencing
                exceptions in the Commitment (Exception Documents) other than the
                standard
                printed exceptions. Seller authorizes the Title Company to mail or
                hand
                deliver the Commitment and Exception Documents to Buyer at Buyer's
                address
                shown in Paragraph 21. If the Commitment and Exception Documents
                are not
                delivered to Buyer within the specified time, the time for delivery
                will
                be automatically extended up to 15 days or the Closing Date, whichever
                is
                earlier.

            

    

    
       

      
        
          
            	 Initialed
                    for identification by Buyer, /s/
                    PAM and Seller, /s/
                    RS  
                    Form
                      produced by Realty One Saltware, PO Box 2489, Amarillo,
                      TX 79105, (806) 342-0217

                  	
                    01A TREC
                      NO. 25-4

                  

          

        

         
          

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      
        	 Farm
                and Ranch Contract	
                 328 Vinton Road, Vinton,
                  El Paso County,,

              	
                 Page Three 01-06-03 

              
	 	
                 (Address
                  of
                  Property)

              	 

      

       

    

     

    
      	
            	C.	
              SURVEY:
                The survey must be
                made by
                a
                registered professional land surveyor acceptable to the Title Company
                and
                any lender. (Check one box only):

            

    

    
      	
            	x	
              (1)
                Within 5
                days after the effective date of this contract, Seller, at Seller's
                expense,
                shall furnish a new survey to
                Buyer.

            

    

    
      	
            	q	
              (2)
                Within
                days after the effective date of this contract, Buyer, at Buyer's
                expense,
                shall obtain a new survey.

            

    

    
      	
            	o	
              (3)
                Within,
                days
                after the effective date of thiscontract,
                Seller shall furnish Seller's existing survey of the Property to
                Buyer
                and
                the Title Company, along with Seller's
                affidavit acceptable to the Title
                Companyfor
                approval of the survey. The existing Survey q
                will q
                will not be recertified
                to
                a date subsequent to the effective dateof
                this contract at the expense
                of
                q 
                Buyer q 
                Seller. If
                the existing survey is not
                approved by
                the Title Companyor
                Buyer's lender,
                anew
                survey will be obtained
                at
                the expense
                of
                q
                Buyer q Sellerno
                later than 3
                daysprior
                to the Closing Date.

            

    

    
      	
            	q	
              (4)
                No survey is required.

            

    

     

    
      	
            	D.	
              OBJECTIONS:
                Within days after Buyer receives the
                Commitment, Exception
                Documents
                and the survey, Buyer may object
                in
                writing to (I) defects, exceptions, or encumbrances to title: disclosed
                on
                the survey other than items 6A(1) through (5) above; disclosed in
                the
                Commitment other than items 6A(1) through (6)
                above; (ii)
                any
                portion
                of the Property lying in the 100 year flood plain
                as
                shown on the current Federal Emergency Management Agency map; or
                (ill) any
                exceptionswhich
                prohibit the following use or activity: agricultural use,
                including but not Limited to agricultural
                greenhouse research

               

              
                Buyer's
                  failure to object within the time allowed will constitute a waiver
                  of
                  Buyer's right to object; except that the requirements in Schedule
                  C of the
                  Commitment are not waived. Seller shall cure the timely objections
                  of
                  Buyer or any third party lender within 15 days after Seller
                  receives the
                  objections
                  and the
                  Closing Date will be extended as necessary. If objections
                  are
                  not cured within such 15 day period, this contract will terminate
                  and the
                  earnest
                  money will
                  be
                  refunded to Buyer
                  unless Buyer waives the
                  objections.

              

            

    

     

    
      
        	
              	E.	
                EXCEPTION
                  DOCUMENTS: Prior to the execution of the contract, Seller has
                  provided
                  Buyer
                  with copies
                  of
                  the Exception
                  Documents
                  listed below
                  or
                  On the attached
                  exhibit.
                  Matters reflected
                  in
                  the Exception
                  Documents
                  listed below
                  or
                  oh the attached
                  exhibit
                  will be permitted
                  exceptions in
                  the Title Policy and will not be
                  a
                  basis for objection
                  to
                  title:

              

      

       

    

    
      	
               Documents

            	 	
               Date

            	 	
               Recording
                Reference

            
	 	 	 	 	 
	 NONE	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    
      
        
          
            	
                  	F.	
                    SURFACE
                      LEASES:Prior
                      to the execution of the contract; Seller
                      has
                      provided
                      Buyer with
                      copies of written leases and given notice of oral leases (Leases)
                      listed
                      below or on the attached
                      exhibit.
                      The following Leases will be permitted
                      exceptions In
                      the Title Policy and will not
                      be a basis for objection to title: NONE 

                  

          

        

      

    

     

    
      
        
          
            	Initialed
                    for identification by Buyer, /s/
                    PAM and Seller, /s/
                    RS  
                    Form
                      produced by Realty One Saltware, PO Box 2489,Amarillo, TX
                      79105, (806) 342-0217

                  	
                    01A TREC
                      NO. 25-4

                  

          

           

        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 Farm
              and Ranch Contract	
               328 Vinton Road, Vinton,
                El Paso County,,

            	
               Page
                Four 01-06-03 

            
	 	
               (Address
                of
                Property)

            	 

    

     

    
      
        
          	
                	G.	
                  TITLE
                    NOTICES:

                

        

      

    

    
      
        
          	
                	(I)	
                  ABSTRACT
                    OR TITLE POLICY: Broker advises Buyer to have an abstract of
                    title covering the Property examined by an attorney of Buyer's
                    selection, or Buyer should be furnished with or obtain a Title
                    Policy. If
                    a Title Policy is furnished, the Commitment should be promptly
                    reviewed by
                    an attorney of Buyer's
                    choice due to the time limitations on Buyer's
                    right to object.

                

        

      

      
        	 	
                (2)

              	
                STATUTORY
                  TAX DISTRICTS: If the Property is situated in a utility or other
                  statutorily created district providing water, sewer, drainage,
                  or flood
                  control facilities and services, Chapter 49, Texas Water, Code
                  requires
                  Seller to deliver and Buyer to sign the statutory notice relating
                  to the
                  tax rate, bonded indebtedness, or standby fee of the district prior
                  to
                  final execution of this contract.

              

      

      
        	 	
                (3)

              	
                TIDE
                  WATERS: If the Property abuts the tidally influenced waters of
                  the state, §33.135, Texas Natural Resources Code, requires a notice
                  regarding coastal area property to be included in the contract.
                  An
                  addendum containing the notice promulgated by TREC or required
                  by the
                  parties must be used.

              

      

      
        	 	
                (4)

              	
                ANNEXATION:
                  If the Property is located outside the limits of a municipality,
                  Seller
                  notifies Buyer under §5.011, Texas Property Code, that the Property may
                  now or later be included in the extraterritorial jurisdiction of
                  a
                  municipality and may now or later be subject to annexation by the
                  municipality. Each municipality maintains a map that depicts its
                  boundaries and extraterritorial jurisdiction. To determine if the
                  Property
                  is located within a municipality's extraterritorial jurisdiction
                  or is
                  likely to be located within a municipality's extraterritorial
                  jurisdiction, contact all municipalities located in the general
                  proximity
                  of the Property for further
                  information.

              

      

      
        	 	
                (5)

              	
                UNIMPROVED
                  PROPERTY LOCATED IN A CERTIFICATED SERVICE AREA OF A UTILITY SERVICE
                  PROVIDER: If the Property is located in a certificated service
                  area of a utility service provider and the Property does not receive
                  water
                  or sewer service from the utility service provider on the date
                  the
                  Property is transferred, §13.257, Texas Water Code, requires a notice
                  regarding the cost of providing water or sewer services to the
                  Property.
                  An addendum containing the notice promulgated by TREC or required
                  by the
                  parties must be used.

              

      

      
        	
              	(6)	
                TEXAS
                  AGRICULTURAL DEVELOPMENT DISTRICT: The Property q
                  is
                  x
                  is
                  not located in a Texas Agricultural Development
                  District.

              

      

       

      
        	7.	
                PROPERTY
                  CONDITION:

              

      

      
        	 	
                A.

              	
                INSPECTIONS,
                  ACCESS AND UTILITIES: Buyer may have the Property inspected by
                  inspectors selected by Buyer and licensed by TREC or otherwise
                  permitted
                  by law to make inspections. Seller shall permit Buyer and
                  Buyer's
                  agents access to the Property at reasonable times. Seller shall
                  pay for
                  turning on existing utilities for
                  inspections.

              

      

      NOTICE:
        Buyer
        should determine the availability of utilities to the Property suitable to
        satisfy Buyer's needs.

      
        	
              	B.	
                SELLER'S
                  DISCLOSURE NOTICE PURSUANT TO §5.048, TEXAS PROPERTY CODE
                  (Notice): (Check one box only)

              

      

      
        	
              	q	
                (1)
                  Buyer has received the Notice

              

      

      
        	
              	x	
                (2)
                  Buyer has not received the Notice. Within 15 
                  days after the effective date of this contract, Seller shall deliver
                  the
                  Notice to Buyer. If Buyer does not receive the Notice, Buyer may
                  terminate
                  this contract at any time prior to the closing and the earnest
                  money will
                  be refunded to Buyer. If Seller delivers the Notice, Buyer may
                  terminate
                  this contract for any reason within 7 days after Buyer receives
                  the Notice
                  or prior to the closing, whichever first occurs, and the earnest
                  money
                  will be refunded to Buyer.

              

      

      
        	
              	q	
                (3)
                  The Texas Property Code does not require this Seller to furnish
                  the
                  Notice.

              

      

      
        	
              	C.	
                SELLER'S
                  DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is
                  required by
                  Federal law for a residential dwelling constructed prior to
                  1978.

              

      

      
        	
              	D.	
                ACCEPTANCE
                  OF PROPERTY CONDITION: Buyer accepts the Property in its present
                  condition; provided Seller, at Seller's expense, shall complete
                  the
                  following specific repairs and treatments: N/A
                  Property to be accepted "AS IS." 

              

      

      
        	
              	E.	
                COMPLETION
                  OF REPAIRS: Unless otherwise agreed in writing, Seller shall
                  complete all agreed repairs prior to the Closing Date. All required
                  permits must be obtained, and repairs must be performed by persons
                  wha are
                  licensed or otherwise permitted by law to provide such repairs.
                  At Buyer's
                  election, any transferable warranties received by Seller with respect
                  to
                  the repairs will be transferred to Buyer at Buyer's
                  expense. If Seller fails to complete any agreed repairs prior to
                  the
                  Closing Date, Buyer may do so and receive reimbursement from Seller
                  at
                  closing. The
                  Closing Date will be extended up to 15 days, if necessary, to complete
                  repairs.

              

      

      
        
          
            	 Initialed
                    for identification by Buyer, /s/
                    PAM and Seller, /s/
                    RS  
                    Form
                      produced by Realty One Saltware, PO Box 2489,Amarillo, TX
                      79105, (806) 342-0217

                  	
                    01A TREC
                      NO. 25-4

                  

          

        

         
          

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      
        	 Farm
                and Ranch Contract	
                 328 Vinton Road, Vinton,
                  El Paso County,,

              	
                 Page
                  Five 01-06-03 

              
	 	
                 (Address
                  of
                  Property)

              	 

      

    

    

      
        	
              	F.	
                LENDER
                  REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in
                  writing, neither party is obligated to pay for lender required
                  repairs,
                  which includes treatment for wood destroying insects. If the parties
                  do
                  not agree to pay for the lender required repairs or treatments,
                  this
                  contract will terminate and the earnest money will be refunded
                  to Buyer.
                  If the cost of lender required repairs and treatments exceeds 5%
                  of the
                  Sales Price, Buyer may terminate this contract and the earnest
                  money will
                  be refunded to Buyer.

              

      

      
        	
              	G.	
                ENVIRONMENTAL
                  MATTERS: Buyer is advised that the presence of wetlands, toxic
                  substances, including asbestos and wastes or other environmental
                  hazards,
                  or the presence of a threatened or endangered species or its habitat
                  may
                  affect Buyer's intended use of the Property. If Buyer is concerned
                  about
                  these matters, an addendum promulgated by TREC or required by the
                  parties
                  should be used.

              

      

      
        	
              	H.	
                SELLER'S
                  DISCLOSURES: Except as otherwise disclosed in this contract,
                  Seller has no knowledge of the
                  following:

              

      

      
        	 	
                (1)

              	
                any
                  flooding of the Property which has had a material adverse effect
                  on the
                  use of the Property;

              

      

      
        	 	
                (2)

              	
                any
                  pending or threatened litigation, condemnation, or special assessment
                  affecting the Property;

              

      

      
        	
              	(3)	
                any
                  environmental hazards or conditions which materially affect the
                  Property;

              

      

      
        	 	
                (4)

              	
                any
                  dumpsite, landfill, or underground tanks or containers now or previously
                  located on the Property;

              

      

      
        	
              	(5)	
                any
                  wetlands, as defined by federal or state law or regulation, affecting
                  the
                  Property; or

              

      

      
        	
              	(6)	
                any
                  threatened or endangered species or their habitat affecting the
                  Property.

              

      

      
        	
              	I.	
                RESIDENTIAL
                  SERVICE CONTRACTS: Buyer may purchase a residential service
                  contract from a residential service company licensed by TREC. If
                  Buyer
                  purchases a residential service contract, Seller shall reimburse
                  Buyer at
                  closing for the cost of the residential service contract in an
                  amount not
                  exceeding $N/A
                  .
                  Buyer should review any residential service contract
                  for the scope of coverage, exclusions and limitations. The
                  purchase of a residential service contract is optional. Similar
                  coverage
                  may be purchased from various companies authorized to do business
                  in
                  Texas.

              

      

      
        	
              	J.	
                GOVERNMENT
                  PROGRAMS: The Property is subject to the government programs
                  listed below or on the attached exhibit: N/A. Seller
                  shall
                  provide
                  Buyer
                  with
                  copies of all
                  governmental
                  program agreements. Any allocation or proration of payment under
                  governmental programs is made by separate agreement between the
                  parties
                  which will survive closing.

              

      

       

       

      
        
          
            	8.	
                    BROKERS'
                      FEES:
                      All obligations of the parties for payment of brokers' fees
                      are contained
                      in separate written
                      agreements.

                  

          

        

      

       

      
        
          	9.	
                  CLOSING:

                

        

      

      
        	
              	A.	
                The
                  closing of the sale
                  will
                  be on or before September 23,
                  2006 ,
                  or within 7 days after
                  objections to matters disclosed in the Commitment or by the survey
                  have
                  been cured, whichever date is later (Closing Date). If either party
                  fails
                  to close the sale by the Closing Date, the non-defaulting party
                  may
                  exercise the remedies contained in Paragraph
                  15.

              

      

       

      
        	
              	B.	
                At
                  closing:

              

      

      
        	 	
                (1)

              	
                Seller
                  shall execute and deliver a general warranty deed conveying title
                  to the
                  Property to Buyer and showing no additional exceptions to those
                  permitted
                  in Paragraph 6, an assignment of Leases, and furnish tax statements
                  or
                  certificates showing no delinquent taxes on the
                  Property.

              

      

      
        	
              	(2)	
                Buyer
                  shall pay the Sales Price in funds acceptable to the escrow
                  agent.

              

      

      
        	 	
                (3)

              	
                Seller
                  and Buyer shall execute and deliver any notices, statements, certificates,
                  affidavits, releases, loan documents and other documents required
                  of them
                  by this contract, the Commitment or law necessary for the closing
                  of the
                  sale and the issuance of the Title
                  Policy.

              

      

      
        	 	
                C.

              	
                Unless
                  expressly prohibited by written agreement, Seiler may continue
                  to show the
                  Property and receive, negotiate and accept back up
                  offers.

              

      

      
        	
              	D.	
                All
                  covenants, representations and warranties in this contract survive
                  closing.

              

      

       

      
        	
                10.

              	
                POSSESSION:
                  Seller
                  shall deliver to Buyer possession of the Property in its present
                  or
                  required condition, ordinary wear and tear excepted: x upon
                  closing and
                  funding q
                  according to a temporary residential lease form promulgated by
                  TREC or
                  other written lease required by the parties. Any possession by
                  Buyer prior
                  to closing or by Seller after closing which is not authorized by
                  a written
                  lease will establish a tenancy at sufferance relationship between
                  the
                  parties. Consult
                  your insurance
                  agent
                  prior to change of ownership or possession because insurance coverage
                  may
                  be limited or terminated. The absence of a written lease or appropriate
                  insurance coverage may expose the parties to economic
                  loss.

              

      

       

      
        
          
            
              	 Initialed
                      for identification by Buyer, /s/
                      PAM and Seller, /s/
                      RS  
                      Form
                        produced by Realty One Saltware, PO Box 2489, Amarillo,
                        TX 79105, (806) 342-0217

                    	
                      01A TREC
                        NO. 25-4

                    

            

          

           
            

        

         

        
          
            
            

          

          
            
            

            
              

            

          

           

        

      

    

    
      
        	 Farm
                and Ranch Contract	
                 328 Vinton Road, Vinton,
                  El Paso County,,

              	
                 Page
                  Six 01-06-03 

              
	 	
                 (Address
                  of
                  Property)

              	 

      

    

    

      
        	
                11.

              	
                SPECIAL
                  PROVISIONS: (Insert
                  only factual statements and business details applicable to the
                  sale. TREC
                  rules prohibit licensees from adding factual statements or business
                  details for which a contract addendum or other form has been promulgated
                  by TREC for mandatory use.)

              

      

          See
        Attached

       

      
        	12.	
                SETTLEMENT
                  AND OTHER EXPENSES:

              

      

      
        	
              	A.	
                The
                  following expenses must be paid at or prior to
                  closing:

              

      

      
        	
              	(1)	
                Expenses
                  payable by Seller (Seller's
                  Expenses):

              

      

      
        	 	
                (a)

              	
                Releases
                  of existing liens, including prepayment penalties and recording
                  fees;
                  release of Seller's
                  loan liability; tax statements or certificates; preparation of
                  deed;
                  one-half of escrow fee; and other expenses payable by Seller under
                  this
                  contract.

              

      

      
        	
              	(b)	
                Seller
                  shall also pay an amount not to exceed $ N/A 
                  to
                  be applied in the following order: Buyer's
                  Expenses which Buyer is prohibited from paying by FHA, VA, Texas
                  Veteran's
                  Housing Assistance Program or other governmental loan programs;
                  Buyer's
                  prepaid items; other Buyer's
                  expenses.

              

      

      
        	
              	(2)	
                Expenses
                  payable by Buyer (Buyer's
                  Expenses):

              

      

      
        	
              	(a)	
                Loan
                  origination, discount, buy-down, and commitment fees (Loan
                  Fees).

              

      

      
        	
              	(b)	
                Appraisal
                  fees; loan application fees; credit reports; preparation of loan
                  documents; interest on the notes from date of disbursement to one
                  month
                  prior to dates of first monthly payments; recording fees; copies
                  of
                  easements and restrictions; mortgagee title policy with endorsements
                  required by lender; loan-related inspection fees; photos, amortization
                  schedules, one-half of escrow fee; all prepaid items, including
                  required
                  premiums for flood and hazard insurance, reserve deposits for insurance,
                  ad valorem taxes and special governmental assessments; final compliance
                  inspection; courier fee, repair inspection, underwriting fee and
                  wire
                  transfer, expenses incident to any loan, and other expenses payable
                  by
                  Buyer under this contract.

              

      

      
        
          	 	B.	N/A

          	 	
                  C.

                	
                  If
                    any expense exceeds an amount expressly stated in this contract
                    for such
                    expense to be paid by a party, that party may terminate this
                    contract
                    unless the other party agrees to pay such excess. Buyer may not
                    pay
                    charges and fees expressly prohibited by FHA, VA, Texas Veteran's
                    Housing
                    Assistance Program or other governmental loan program
                    regulations.

                

        

         

        
          	13.	
                  PRORATIONS
                    AND ROLLBACK TAXES:

                

        

        
          	 	
                  A.

                	
                  PRORATIONS:
                    Taxes for the current year, interest, maintenance fees, assessments,
                    dues
                    and rents will be prorated through the Closing Date. If taxes
                    for the
                    current year vary from the amount prorated at closing, the parties
                    shall
                    adjust the prorations when tax statements for the current year
                    are
                    available. If taxes are not paid at or prior to closing, Buyer
                    shall pay
                    taxes for the current year. Rentals which are unknown at time
                    of closing
                    will be prorated between Buyer and Seller when they become
                    known.

                

        

        
          	 	
                  B.

                	
                  ROLLBACK
                    TAXES: If this sale or Buyer's
                    use of the Property after closing results in the assessment of
                    additional
                    taxes, penalties or interest (Assessments) for periods prior
                    to closing,
                    the
                    Assessments will
                    be the
                    obligation
                    of
                    Buyer.
                    If
                    Seller's change
                    in use of the Property prior
                    to closing or denial of a special use valuation on the Property
                    claimed by
                    Seller results in Assessments for periods prior to closing, the
                    Assessments will be the obligation of Seller. Obligations imposed
                    by this
                    paragraph will
                    survive closing.

                

        

        
          
            
               

              
                	14.	
                        CASUALTY
                          LOSS: If
                          any part of the Property is damaged or destroyed
                          by fire or other casualty
                          after the effective date of this contract, Seller shall
restore
                          the Property to its previous condition as soon as reasonably
                          possible, but
                          in any event by the Closing Date. If Seller fails to do
                          so due to factors
                          beyond Seller's
                          control, Buyer may (a) terminate this contract
                          and the earnest money will be refunded to Buyer (b) extend
                          the time for
                          performance up to 15 days and the Closing Date will be
                          extended as
                          necessary or (c) accept the Property in its damaged condition
                          with an
                          assignment of insurance proceeds and receive credit from
                          Seller at closing
                          in the amount of the deductible under the insurance policy.
                          Seller's
                          obligations under this paragraph are independent of any
                          obligations of
                          Seller under Paragraph
                          7.

                      

              

            

             

            
              
                
                  
                    	 Initialed
                            for identification by Buyer, /s/
                            PAM and Seller, /s/
                            RS  
                            Form
                              produced by Realty One Saltware, PO Box 2489, Amarillo,
                              TX 79105, (806) 342-0217

                          	
                            01A TREC
                              NO. 25-4

                          

                  

                

                 
                  

              

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

      

    

     

    
      
        	 Farm
                and Ranch Contract	
                 328 Vinton Road, Vinton,
                  El Paso County,,

              	
                 Page Seven 01-06-03 

              
	 	
                 (Address
                  of
                  Property)

              	 

      

    

    
       

      
        	
                15.

              	
                DEFAULT:
                  If
                  Buyer fails to comply with this contract, Buyer will be in default,
                  and
                  Seller may (a) enforce specific performance, seek such other relief
                  as may
                  be provided by law, or both, or (b) terminate this contract and
                  receive
                  the earnest money as liquidated damages, thereby releasing both
                  parties
                  from this contract. If, due to factors beyond Seller's control,
                  Seller
                  fails within the time allowed to make any non-casualty repairs
                  or deliver
                  the Commitment, or survey, if required of Seller, Buyer may (a)
                  extend the
                  time for performance up to 15 days and the Closing Date will be
                  extended
                  as necessary or (b) terminate this contract as the sole remedy
                  and receive
                  the earnest money. If Seller fails to comply with this contract
                  for any
                  other reason, Seller will be in default and Buyer may (a) enforce
                  specific
                  performance, seek such other relief as may be provided by law,
                  or both, or
                  (b) terminate this contract and receive the earnest money, thereby
                  releasing both parties from this
                  contract.

              

      

       

      
        	
                16.

              	
                MEDIATION:
                  It
                  is the policy of the State of Texas to encourage resolution of
                  disputes
                  through alternative dispute resolution procedures such as mediation.
                  Any
                  dispute between Seller,
                  and Buyer related to this contract which is not resolved through
                  informal
                  discussion will not be submitted to a mutually acceptable mediation
                  service or provider. The parties to the mediation shall bear the
                  mediation
                  costs equally. This paragraph does not preclude a party from seeking
                  equitable relief from a court of competent
                  jurisdiction.

              

      

       

      
        	
                17.

              	
                ATTORNEY'S
                  FEES:
                  The prevailing party in any legal proceeding related to this contract
                  is
                  entitled to recover reasonable attorney's fees and all costs of
                  such
                  proceeding incurred by the prevailing
                  party.

              

      

       

      
        	
                18.

              	
                ESCROW:
                  The
                  escrow agent is not (a) a party to this contract and does not have
                  liability for the performance or nonperformance of any party to
                  this
                  contract, (b) liable for interest on the earnest money and (c)
                  liable for
                  the loss of any earnest money caused by the failure of any financial
                  institution in which the earnest money has been deposited unless
                  the
                  financial institution is acting as escrow agent. At closing, the
                  earnest
                  money must be applied first to any cash down payment, then to Buyer's
                  Expenses and any excess refunded to Buyer. If both parties make
                  written
                  demand for the earnest money, escrow agent may require payment
                  of unpaid
                  expenses incurred on behalf of the parties and a written release
                  of
                  liability of escrow agent from all parties. If one party makes
                  written
                  demand for the earnest money, escrow agent shall give notice of
                  the demand
                  by providing to the other party a copy of the demand. If escrow agent does
                  not receive written objection to the demand from the other party
                  within 30
                  days after notice to the other party, escrow agent may disburse
                  the
                  earnest money to the party making demand reduced by the amount
                  of unpaid
                  expenses incurred on behalf of the party receiving the earnest
                  money and
                  escrow agent may pay the same to the creditors. If escrow agent
                  complies
                  with the provisions of this paragraph, each party hereby releases
                  escrow
                  agent from all adverse claims related to the disbursal of the earnest
                  money. Escrow agent's notice to the other party will be effective
                  when
                  deposited in the U. S. Mail, postage prepaid, certified mail, return
                  receipt requested, addressed to the other party at such party's
                  address
                  shown below. Notice of objection to the demand will be deemed effective
                  upon receipt by escrow agent.

              

      

       

      
        	
                19.

              	
                REPRESENTATIONS:
                  Seller
                  represents that as of the Closing Date (a) there will be no liens,
                  assessments, or security interests against the Property which will
                  not be
                  satisfied out of the sales proceeds unless securing payment of
                  any loans
                  assumed by Buyer and (b) assumed loans will not be in default,
                  If any
                  representation of Seller in this contract is untrue on the Closing
                  Date,
                  Buyer may terminate this contract and the earnest money will be
                  refunded
                  to Buyer.

              

      

       

      
        	
                20.

              	
                FEDERAL
                  TAX REQUIREMENTS:
                  If
                  Seller is a "foreign person," as defined by applicable law, or
                  if Seller
                  fails to deliver an affidavit to Buyer that Seller is not a "foreign
                  person,"
                  then Buyer shall withhold from the sales proceeds an amount sufficient
                  to
                  comply with applicable tax law and deliver the same to the Internal
                  Revenue Service together with appropriate tax forms. Internal Revenue
                  Service regulations require filing written reports if currency
                  in excess
                  of specified amounts is received in the
                  transaction.

              

      

       

      
        
          
            
              	 Initialed
                      for identification by Buyer, /s/
                      PAM and Seller, /s/
                      RS  
                      Form
                        produced by Realty One Saltware, PO Box 2489, Amarillo,
                        TX 79105, (806) 342-0217

                    	
                      01A TREC
                        NO. 25-4

                    

            

          

           
            

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

    
       

      
        	 Farm
                and Ranch Contract	
                 328 Vinton Road, Vinton,
                  El Paso County,

              	
                 Page
                  Eight 01-06-03 

              
	 	
                 (Address
                  of
                  Property)

              	 

      

    

     

    
      
        
          
            	21.	
                    NOTICES:
                      All notices from one party to the other must be in writing
                      and are
                      effective when mailed to, hand-delivered at, or transmitted
                      by facsimile
                      as follows:

                  

          

        

      

       

      
        
          	 To
                  Buyer at:	 	
                  To
                    Seller at:

                
	 	 	 
	 	 	 
	 Valcent
                  Products, Inc.
                  Clo Gordon
                  & Mott,. P.C. 	 	 717
                  Franklin Street
	
                   4695 N. Mesa, Suite
                    100

                	 	Anthony,
                  Texas 79821-5194
	 El
                  Paso,
                  Texas 79912	 	 N/A
	
                   Telephone:(
                    915 )545-1133

                	 	 Telephone:(915)355-8207
	 Facsimile:(
                  915 )545-4433	 	 Fascmile:(915)
                  440-4466
	 	 	 

        

      

    

     

    
       

      
        	23.	
                AGREEMENT
                  OF PARTIES: This contract contains the entire agreement of
                  the parties and  cannot be changed except by their written
                  agreement.  Addenda which are a part of this contract are (check all
                  applicable boxes):

              

      

       

      
        
          	 x	 Third
                  Party Financing Condition Addendum	 o	
                  Addendum
                    for Seller's Disclosure of Information on Lead-based Paint and
                    Lead-based
                    Paint Hazards as Required by Federal Law

                
	 	 	 	 
	 o	
                  Seller
                    Financing Addendum

                	 o	
                  Environmental
                    Assessment, Threatened or Endangered Species and Wetlands
                    Addendum

                
	 	 	 	 
	 o	
                  Loan
                    Assumption Addendum

                	 o	 Addendum
                  for Coastal Area Property
	 	 	 	 
	 o	
                  Buyer's
                    Temporary Residential Lease

                	 o	
                  Addendum
                    for Property Located Seaward of the Gulf Intracoastal
                    Waterway

                
	 	 	 	 
	 o	
                  Seller's
                    Temporary Residential Lease

                	 o	
                  Addendum
                    for "Back-Up" Contract

                
	 	 	 	 
	 o	
                  Addendum
                    for Sale of Other Property by Buye

                	 	 
	 	 	 	 
	 o	
                  Addendum
                    for Unimproved Property Located in a Certificated Service Area
                    of a
                    Utility Service Provider

                	 	 
	 	 	 	 
	 x	
                  Other
                    (list): Addendum
                    to Farm
                    and Ranch Contract 

                	 	 
	 	 	 	 
	 	
                  N/A

                	 	 
	 	 	 	 
	 	 N/A	 	 

        

      

    

     

     
      
        
          
            	 Initialed
                    for identification by Buyer, /s/
                    PAM and Seller, /s/
                    RS  
                    Form
                      produced by Realty One Saltware, PO Box 2489, Amarillo,
                      TX 79105, (806) 342-0217

                  	
                    01A TREC
                      NO. 25-4

                  

          

        

         
          

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
       

      
        	 Farm
                and Ranch Contract	
                 328 Vinton Road, Vinton,
                  El Paso County,

              	
                 Page Nine
01-06-03 

              
	 	
                 (Address
                  of
                  Property)

              	 

      

    

     

    
      
        	23.	
                TERMINATION
                  OPTION: This paragraph will be
                  a
                  part of this contract ONLY if both blanks are filled in and Buyer
                  has paid
                  the Option Fee. Buyer has paid Seller
                  $100.00  (Option
                  Fee) for the unrestricted right
                  to
                  terminate this contract by
                  giving
                  notice of termination to Seller within 15
                  days after the effective date of this contract.
                  If Buyer gives notice of termination within the time specified,
                  the Option
                  Fee will not be refunded, however, any earnest money will be refunded
                  to
                  Buyer. The Option Fee qwill
                  qwill
                  not be credited to the Sales Price at closing. For the purposes
                  of this
                  paragraph, time is of the essence; strict compliance with the time
                  for
                  performance stated herein is
                  required.

              

      

       

      
        	
                24.

              	
                CONSULT
                  AN ATTORNEY: Real estate licensees cannot give legal advice. READ
                  THIS CONTRACT CAREFULLY. If you do not understand the effect of
                  this
                  contract, consult an attorney BEFORE
                  signing.

              

      

       

      

         

        

        
          	
                  Buyer's

                	
                  Seller's

                
	
                  Attorney
                    is: A. Marcelo Rivera

                	
                  Attorney
                    is: N/A

                
	
                  4695
                    N.
                    Mesa,
                    Suite 100, El Paso, Texas

                	
                  N/A

                
	
                  Telephone:
                    ( 915
                    )

                	
                  545-1133

                	
                  Telephone:
                    ( N/A)
                    N/A

                
	
                  Facsimile:
                    ( 915 )

                	
                  545-4433

                	
                  Facsimile:
                    ( N/A ) N/A

                

        

      

    

     

    EXECUTED
      the _________ day of September 2006, (EFFECTIVE DATE)

     

     

    
      	/s/
              Perry A Martin	 	 
	Buyer
              Valcent Products, Inc. C/o Gordon	 	
              Seller
                Roberto H.
                Silvas

            
	 	 	 
	 	 	 /s/
              Roberto H Silvas
	
              Buyer
                P.C

            	 	 Seller
	 	 	 

    

     

    

       

      
        	
                 The
                  form of this contract has been approved by the Texas Real Estate
                  Commission. TREC farms are intended
                  for
                  use only by trained real estate licensees. No
                  representation
                  is made as to the legal validity or adequacy of any prousion in
                  any
                  specific transactions. It is not suitable for complex transactions.
                  Texas
                  Real Estate Commission, P.O; Box 12188, Austin, TX 78711-2188,
                  1-800-250-8732 or (512) 459-6544 (http:IIw w.trec.state.tx-us)
                  TREC NO.
                  25-4. This form replaces TREC NO.
                  25-3.

              

      

    

     

    
      
      

      
        
          	 Initialed
                  for identification by Buyer, /s/
                  PAM and Seller, /s/
                  RS  
                  Form
                    produced by Realty One Saltware, PO Box 2489, Amarillo,
                    TX 79105, (806) 342-0217

                	
                  01A TREC
                    NO. 25-4Master Services Agreement between Accretive Commerce, Inc. and Valcent Products,
      Inc.

    
      

    

    Exhibit
      10.20 

    
      

    

     

    

    
 

    MASTER
      SERVICES AGREEMENT

    

    This
      Master Services Agreement (this“Agreement”),
      dated as of November __, 2006 (“Effective Date”), is
      by
      and
      between Accretive
      Commerce, Inc.,
      a
      Delaware corporation with a principal place of business at 13801
      Reese Boulevard West, Suite 250, Huntersville, NC 28078 (“Accretive Commerce”)
      and
      Valcent Products, Inc. (“Company”),
      a ___________________with a principal place of business at 1057 Doniphan Park
      Circle

    Suite
      H,
      El Paso, TX 79922.

    

    RECITALS

     

    WHEREAS,
      Company
      has a variety of marketing programs for the sale and/or distribution of various
      merchandise and a variety of promotional campaigns to enhance such marketing
      programs; and

     

    WHEREAS,
      Accretive Commerce is a provider of various services to the direct response
      industry, including, but not limited to:
      order
      entry; data processing; rebate processing;
      sweepstakes processing;
      inbound
      telemarketing; customer service; pick, pack and ship; order fulfillment;
      warehousing and storage; and returns processing; and 

     

    WHEREAS,
      Accretive
      Commerce desires to provide some or all of such
      services
      to
      Company,
      as more
      particularly described herein; and

     

    WHEREAS,
      Company
      desires that Accretive Commerce provide certain
      services
      in connection with the sale of certain merchandise or processing for certain
      promotional
      campaigns,
      and
      Accretive Commerce desires to provide such services to Company.

     

    STATEMENT
      OF AGREEMENT

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual promises and conditions contained herein, and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto hereby agree as follows:

     

    1. DEFINITIONS.
      For the
      purposes of this Agreement, the following definitions shall apply:

     

    
      	
              a.

            	
               “Business
                Day” shall mean any day other than (i) a Saturday or Sunday or (ii)
                a
                day when the Federal Reserve Bank of New York is not open (currently
                New
                Year’s Day, Birthday of Martin Luther King, Jr., Washington’s Birthday,
                Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans
                Day,
                Thanksgiving Day, and Christmas
                Day).

            

    

     

    
      	
              b.

            	
              “Close-Down
                Expense” shall mean charges from Accretive Commerce to Company relating to
                all activities necessary to remove Merchandise
                from Accretive Commerce facilities, for purging the Accretive Commerce
                computer system of Data
                and for such other activities as shall be agreed upon between Accretive
                Commerce and Company,
                including, without limitation,
                removal of Merchandise from racks, packing Merchandise
                for
                shipment (if necessary), preparing freight documents for shipment
                of
                Merchandise to
                Company’s designated destination and loading Merchandise
                on
                the trucks of Company’s designated carrier, together with the cost of any
                necessary supplies
                (collectively, the “Close-Down Services”).

            

    

     

    
      	
              c.

            	
              “Count
                Date” shall mean the dates, established by the parties under the terms
                of
                this Agreement, for executing
                a cycle count of physical
                inventory.

            

    

     

    
      	
              d.

            	
               “Data”
                shall mean the Company data being stored by Accretive Commerce in
                or on
                the Process with respect to the provision of Services under this
                Agreement.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
              e.

            	
              “Grace
                Period” shall mean a period commencing on the Effective
                Date
                and terminating 60 days thereafter, wherein the Company transitions
                onto
                the Process and into the facility where the Services will be
                performed.

            

    

     

    
      	
              f.

            	
              “Hazardous
                Substance” shall mean any substance or material defined or designated as
                hazardous or toxic waste, hazardous or toxic material, hazardous
                or toxic
                or radioactive substance or other similar term by any federal, state
                or
                local environmental law, regulation or rule presently in effect or
                promulgated in the future,
                as
                such laws, regulations, or rules may be amended from time to time.
                

            

    

     

    
      	
              g.

            	
              “Imprest
                Fund” shall mean a segregated fund maintained by Accretive Commerce to
                pay
                certain expenses on behalf of Company, including all common carrier
                and
                other delivery service shipping costs, packing material
                costs,
                stationery expenses
                and
                other similar expenses, as specified in an applicable Statement of
                Work.

            

    

     

    
      	
              h.

            	
              “Initial
                Start-Up Fee”
                shall mean the fee for Start-Up
                Services, as specified in an applicable Statement of
                Work.

            

    

     

    
      	
              i.

            	
              “Inventory
                Shrinkage” shall mean the sum of Merchandise Inventory Shrinkage and
                Non-Merchandise Inventory
                Shrinkage.

            

    

     

    
      	
              j.

            	
              “Inventory
                Variance” shall mean the difference between the value of the inventory as
                determined from the perpetual inventory report on any Count Date
                and the
                value of the inventory established by a cycle count or physical inventory
                on the date the inventory was received by Accretive Commerce or the
                previous Count Date; provided, however, that for purposes of determining
                the Inventory Variance, prices shall be deemed to be constant regardless
                of any intermittent price changes. The value of any adjustment made
                at any
                time to the perpetual inventory report shall be added to or subtracted
                from, as the case may be, the Inventory Variance for the purpose
                of
                calculating Merchandise and Non-Merchandise Inventory
                Shrinkage.

            

    

     

    
      	
              k.

            	
              “Merchandise”
                shall mean products offered for sale or distribution by Company.
                

            

    

     

    
      	
              l.

            	
              “Merchandise
                Inventory Shrinkage” shall mean the quotient that
                results from dividing (i) Inventory Variance by (ii) the total Merchandise
                inventory receipts processed by Accretive Commerce during the prior
                12
                months.

            

    

     

    
      	
              m.

            	
               “Non-Merchandise”
                shall mean paper products or other materials utilized in the Process,
                but
                that
                are not offered for sale by the Company, including but not limited
                to
                marketing inserts, dunnage, customized packing slips, and customized
                corrugate.

            

    

     

    
      	
              n.

            	
              “Non-Merchandise
                Inventory Shrinkage” shall mean the quotient that
                results from dividing (i) Inventory Variance by (ii) the total
                Non-Merchandise inventory receipts processed by Accretive Commerce
                during
                the prior 12 months 

            

    

     

    
      	
              o.

            	
               “Problem
                Merchandise” shall mean Merchandise shipped to Accretive Commerce, which
                in Accretive Commerce’s
                sole
                discretion, cannot be processed by Accretive Commerce without imposing
                an
                unreasonable hardship on Accretive Commerce. For illustrative purposes
                and
                without limiting the definition thereof, Problem Merchandise shall
                include
                all Merchandise that (i) arrives with insufficient paperwork, (ii)
                is
                delivered to Accretive Commerce in the absence of a delivery appointment
                or (iii) is faulty or damaged
                when delivered.

            

    

     

    
      	
              p.

            	
              “Problem
                Merchandise Rate” shall mean a storage rate of one and one-half times the
                applicable storage rate in an applicable Statement
                of Work.
                

            

    

     

    
      	
              q.

            	
              “Process”
                shall mean,
                collectively,
                all computer software, systems, databases, inventions, ideas, trade
                secrets, methods of operation, other computer-related material and
                all
                procedures and processes used by Accretive Commerce in connection
                with the
                performance of its obligations under this Agreement (including but
                not
                limited to those developed by Accretive Commerce and modifications
                or new
                programs developed by Accretive Commerce for Company).

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
              r.

            	
              “Quarterly
                Forecast” shall mean a complete set of projections covering the operation
                of the Company’s business
                for the next succeeding two calendar quarters, including, by week,
                reasonably
                anticipated forecasts as to (i)
                number of orders,
                (ii)
                number of emails and telephone calls,
                (iii)
                number of units received and shipped and
                (iv)
                returns.

            

    

     

    
      	
              s.

            	
              “Revised
                Quarterly Forecast” shall mean any revision to a Quarterly Forecast or a
                previously
                delivered
                Revised Quarterly Forecast.

            

    

     

    
      	
              t.

            	
              “Service
                Levels” shall mean certain mutually agreed upon standards of performance
                as set forth in an
                applicable
                Statement of Work, which Accretive Commerce shall maintain in the
                rendering of the Services so long as Company is not in default hereunder.
                

            

    

     

    
      	
              u.

            	
              “Services”
                shall mean the services
                provided by
                Accretive Commerce hereunder,
                as
                further specified in an applicable Statement of
                Work.

            

    

     

    
      	
              v.

            	
              “Special
                Services” shall mean Services not specified in any Statement of Work,
                requested by Company.

            

    

     

    
      	
              w.

            	
              “Start-Up
                Services” shall mean those start-up Services so identified in an
                applicable Statement of Work.

            

    

     

    
      	
              x.

            	
              “Statement
                of Work” or “SOW” shall mean a document issued under this Agreement
                and
                incorporated in its entirety herein, which sets
                forth, without limitation, a description of services, rates and
                fees
                for Services to be performed hereunder.

            

    

     

    
      	
              y.

            	
              “Term”
                shall mean the Initial Term and all renewal terms,
                collectively.

            

    

     

    
      	
              z.

            	
              “Transaction
                Fees” shall mean a fee due to Accretive Commerce for the provision of
                Transaction Services.

            

    

     

    
      	
              aa.

            	
              “Transaction
                Rate” shall mean the amount of a specific fee due to Accretive Commerce
                for the provision of a specific Transaction
                Service.

            

    

     

    
      	
              bb.

            	
              “Transaction
                Services” shall mean Services billed to Company on a “per unit” basis, as
                specified in an applicable Statement of
                Work.

            

    

     

    2. APPOINTMENT.
      Company
      hereby appoints Accretive Commerce as a third party provider of the
      Services
      for the Nova
      Skin Care System line
      of
      products sold through direct response advertising upon the terms and conditions
      set forth in this Agreement.

     

    3. SERVICES.
      Company
      hereby engages Accretive Commerce to provide such Services as are described
      in
      the attached Statement of Work or future Statements of Work to be entered into
      between the parties, and Company shall pay for such Services as set forth
herein
      and therein.

     

    
      	
              a.

            	
              Except
                as otherwise expressly permitted under this Agreement, all instruments,
                such as orders, acknowledgments, invoices, schedules, attachments,
                exhibits
                and the like used in conjunction with this Agreement (“Instruments”) shall
                be for the sole purpose of defining quantities, prices, and describing
                services or products to be provided hereunder, and to this extent
                only are
                incorporated as a part of this
                Agreement.

            

    

     

    
      	
              b.

            	
              Any
                modifications to a Statement of Work shall require execution of a
                written
                change order agreed to and executed by both parties to this
                Agreement.

            

    

     

    
      	
              c.

            	
              Accretive
                Commerce shall not be precluded from out-sourcing certain Services
                on a
                temporary basis,
                provided there is prior written consent of Company.
                

            

    

     

    
      	
              d.

            	
              Accretive
                Commerce further promises to deliver or facilitate the following
                and as
                further set forth in the Statement of
                Work:

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
            	
              i.

            	
              Status
                Calls will be held every week initially during start-up, and at least
                every other week after start-up, to discuss the program, how it is
                running, and any issues that may
                arise.

            

    

     

    
      	 	
              ii.

            	
              Customer
                Service requests from Valcent
                Products, Inc.
                will be responded to within 8 hours.

            

    

     

    
      	 	
              iii.

            	
              Typical
                order shipments will be handled within 24 hours of the order being
                received by Accretive Commerce (except holidays and weekends). Exceptions
                for credit card declines, and backordered product are acceptable.
                

            

    

     

    
      	 	
              iv.

            	
              When
                applicable, continuity orders need to be shipped to consumers so
                that they
                arrive at the consumers home within 3 days on either side of their
                requested re-order timing. 

            

    

     

    4. SERVICE
      LEVELS.
      In
      the
      event the parties agree to subject certain Services to mutually agreed upon
      Service Levels, such Service Levels shall be set forth in the applicable
      Statement of Work, provided that Service Level
      requirements
      shall
      not apply during the Grace Period. In circumstances where a Statement of Work
      does not stipulate Service
      Levels,
      Accretive Commerce shall use commercially reasonable efforts to provide
Service
      Levels consistent with
      the
      industry norm for such Services.

     

    5. FEES
      AND CHARGES.
      In
      consideration for performance of the Services during the Term,
      Company
      shall pay to Accretive Commerce the fees and charges delineated in the
      applicable Statement of Work. These fees and charges shall include:

     

    
      	
              a.

            	
              Initial
                Start-Up Fee. Company shall pay Accretive Commerce an Initial
                Start-Up
                Fee as consideration for the Start-Up
                Services agreed upon by the parties hereto,
                as
                set forth in the Statement of Work.

            

    

     

    
      	b.	
              Transaction
                Fees and Rates. 

            

    

     

    
      	i.	
              Company
                shall pay to Accretive Commerce Transaction Fees,
                as
                set forth in the Statement of Work.

            

    

     

    
      	
              c.

            	
              Administrative
                Fees. Company shall pay Administrative Fees to Accretive Commerce
                for
                account management services as
                specified in an applicable Statement
                of Work
                upon approval of Company.

            

    

     

    
      	
              d.

            	
              Special
                Services. If Company requests that Accretive Commerce provide services
                not
                already defined in the Statement of Work, Company shall pay Accretive
                Commerce at the hourly rates specified in the applicable Statement
                of Work
                or
                a fixed amount mutually agreed to in writing by the parties. All
                requests
                for
                Special Services
                shall be in writing and signed by both
                parties.

            

    

     

    
      	
              e.

            	
              Close-Down
                Expenses. Upon expiration or any termination of this Agreement for
                any
                reason, Accretive
                Commerce shall perform the Close-Down Services, and Company
                shall pay the
                Close-Down
                Expenses based on the hourly rates set forth in the applicable Statement
                of Work (subject to any applicable CPI Adjustment). Accretive Commerce
                shall provide Company of estimate of such Close-Down Expenses,
                prior to commencement of any Close-Down
                Services.
                

            

    

     

    6. PAYMENT
      PROCEDURE.

     

    
      	
              a.

            	
              Initial
                Start-Up Fee. Company shall pay the Initial
                Start-Up Fee,
                if any, concurrently with the execution of this Agreement
                and
                any subsequent Statement
                of Work that
                requires a separate start-up fee.

            

    

     

    
      	
              b.

            	
              Invoices.
                Accretive Commerce will bill Company for these services at rates
                listed in
                the attached Statement of Work. 

            

    

     

    

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	c.	
              Payment
                Terms. 

            

    

     

    
      	
            	i.	
              Payment
                terms for Initial Start-Up
                Fees, Transaction Fees and Hourly Rates, Minimum Charges, Administrative
                Services and Special Services shall be net 30 days from the date
                of
                invoice. Company shall make payments
                by:

            

    

     

    
      	 	
              1.

            	
              USPS
                Certified First Class mail to: PO Box 79295, City of Industry, CA
                91716-9295 or,

            

    

     

    
      	 	
              2.

            	
              electronically
                to Accretive Commerce

            

    

     

    
      	
            	ii.	
              Payment
                terms for Close-Down Expenses. 100%
                of
                the estimated Close-Down
                Expense,
                which Accretive Commerce shall provide to Company, must be paid 30
                days
                before the expected date on which the
                Close-Down Services
                will be completed or before any Merchandise is removed from Accretive
                Commerce facility as part of the
                Close-Down Services,
                whichever is earlier. Accretive Commerce shall reconcile such advance
                payment against the actual Close-Down
                Expenses
                and issue Company a final invoice or refund not more than 14 days
                after
                the completion of the
                Close-Down Services.

            

    

     

    
      	
              d.

            	
              Security
                Deposit
                Accretive Commerce will invoice client for freight / postage charges
                which
                must be paid within terms, however, at all times during the term
                hereof,
                client must maintain on deposit with Accretive Commerce an amount
                sufficient to cover third party shipping / freight charges for a
                minimum
                of one month usage. Accretive Commerce has the right to adjust the
                amount
                required to be on deposit to reflect volume trends. Accretive Commerce
                will not ship orders if the amount of freight / postage exceeds the
                amount
                in the deposit account. Additionally, in the event that payment for
                services exceed agreed upon terms, Accretive Commerce retains the
                right,
                at its sole discretion, to apply available surplus deposit amounts
                against
                balance due. Upon termination of this Agreement, or removal of all
                client
                property, whichever is later, Accretive Commerce shall reimburse
                client
                all surplus amounts payable to client and retained by Accretive Commerce
                within fifteen (15) days of the later
                date.

            

    

     

    7. IMPREST
      FUND.
      At any
      time during the term of this Agreement, upon
      the
      request of Accretive Commerce or at Company’s request with Accretive Commerce’s
      approval, Company will
      establish and maintain an
      Imprest Fund. Company
      and Accretive Commerce shall agree in advance upon which costs and charges
      are
      to be paid from the Imprest Fund, it being understood that such list of charges
      may change from time to time according to Company’s business needs and Accretive
      Commerce’s operations. Accretive
      Commerce shall pay Company costs and charges therefrom (as identified in the
      applicable Statement of Work or otherwise mutually agreed)
      so long
      as and to the extent that a balance remains therein. As
      a
      minimum, the Imprest Fund shall be funded by Company from time to time as needed
      to bring the balance of the Imprest
      Fund
      to an
      amount that would cover forecasted expenses for the ensuing two-week period
      after taking into consideration such factors as forecasted order volume,
      seasonality and other applicable factors. If the Imprest Fund is insufficient
      to
      cover such expenses, Accretive Commerce may, in its sole discretion: (a)
pay
      the
      expenses and immediately invoice Company for the amount of expenses
      incurred,
      and
      such invoice amount shall be payable within five
      Business
      Days after receipt; or (b) following five
      Business
      Days after providing Company with written notice of insufficient funds in the
      Imprest Fund (and the Imprest Fund has not during such time been restored in
      full), elect not to pay the expenses, and if Accretive Commerce so elects not
      to
      pay the expenses, it shall have no liability whatsoever for any losses or
      liabilities incurred by Company for such nonpayment. In addition, if the Imprest
      Fund is being used to cover the costs of common carrier and other delivery
      service shipping, Accretive Commerce may suspend shipping if the available
      funds
      are insufficient to pay additional shipping charges. Accretive Commerce shall
      provide Company with a weekly statement setting forth the balance of, and
      accounting for disbursements from, the Imprest Fund.

     

    8. INVENTORY.
      Company
      shall, at its own expense, supply Accretive Commerce at the Accretive Commerce
      facilities
      specified in the applicable Statement of Work, and maintain with Accretive
      Commerce, an inventory of Merchandise and
      Non-Merchandise materials adequate
      to fill orders received for Company’s
      Merchandise,
      consistent with its Quarterly Forecasts or Revised Quarterly Forecasts.
      Accretive Commerce shall use commercially reasonable efforts to preserve and
      maintain Merchandise and
      Non-Merchandise materials received
      from Company in good and marketable condition. 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      9. AUDITS
        AND MAINTAINING RECORDS.  Accretive
        Commerce will keep (to the extent it is part of Accretive Commerce’s business
        practice), during the term of this Agreement, complete and accurate books
        and
records of all contracts, inventories, orders, copy, files, records,
        accounts and other documents and matters in Accretive Commerce’s possession or
        under its control to the extent they pertain directly to Company or any
        Services.  Company and its attorneys or regular certified public
        accountants, at Company’s expense, will have the right at any time during
        regular business hours upon thirty (30) business days prior written notice,
        to
        audit, examine and make extracts from all such records, including the general
        ledger, invoices, and any other records, including inventory levels, which
        Company reasonably deems appropriate to verify the accuracy of Accretive
        Commerce’s performance under this Agreement, including records of Accretive
        Commerce’s affiliates if they are directly involved in activities which are the
        subject of this Agreement.

    

     

    10. SECURITY
      INTEREST AND LIENS.
      

     

    
      	
              a.

            	
              Company
                acknowledges that Accretive Commerce has a warehousemen’s statutory lien
                on the Merchandise, as provided for by the laws of the states
                in
                which the Merchandise is being
                warehoused.

            

    

     

    11. RISK
      OF LOSS.

     

    
      	
              a.

            	
              All
                risk of loss and damage to Merchandise from any cause prior to receipt
                by
                Accretive Commerce into, and from and after the removal by common
                carrier
                from, the inventory at the Accretive Commerce Facility shall be borne
                by
                Company. Any loss or damage by fire or casualty to Merchandise on
                the
                premises of Accretive Commerce shall be borne by Company and shall
                not
                be
                considered Merchandise Inventory Shrinkage unless such loss or damage
                is
                due to Accretive Commerce’s negligence, theft or willful misconduct. As
                the sole and exclusive remedy to Company
                for such loss or damage to the Merchandise inventory,
                Accretive Commerce shall reimburse Company at Company’s net Merchandise
                cost as specified in an applicable Statement
                of Work
                for Merchandise Inventory Shrinkage, which calculation shall be made
                on
                12/31/2007 and once annually on the anniversary date of the first
                receipt
                by Accretive Commerce or such other date as may be mutually agreed
                between
                the parties. 

            

    

     

    
      	
              b.

            	
              All
                risk of loss and damage to Non-Merchandise
                materials
                from any cause prior to receipt by Accretive Commerce into, and from
                and
                after the removal by common carrier from, the inventory at the Accretive
                Commerce Facility shall be borne by Company. Any loss or damage by
                fire or
                casualty to Non-Merchandise materials on the premises of Accretive
                Commerce shall be borne by Company
                and shall not be considered Non-Merchandise Inventory Shrinkage.
                As the
                sole and exclusive remedy to Company for any other loss or damage
                to
                Non-Merchandise inventory,
                Accretive Commerce shall reimburse Company at Company’s net cost as
                specified in an applicable Statement of Work for Non-Merchandise
                Inventory
                Shrinkage, which calculation shall be made once annually on the
                anniversary date of the first receipt by Accretive Commerce or such
                other
                date as may be mutually agreed between the parties.
                

            

    

     

    12. COLLECTIONS.
      Notwithstanding anything contained herein to the contrary, the parties
      acknowledge that Accretive Commerce shall not be required to make any collection
      efforts on Company’s behalf and shall share no risk with respect to any failure
      of Company to collect payment for any customer order.

     

    13. TAXES.
      All
      fees, costs, charges and other amounts payable to Accretive Commerce hereunder
      for Services rendered by Accretive Commerce to Company are exclusive of
      applicable taxes, if any, which (other than income taxes of Accretive Commerce)
      are the responsibility of Company. Accretive
      Commerce shall calculate for each customer sale all applicable sales taxes
      based
      on information supplied by Company. A list of all the jurisdictions in which
      Company is required to collect sales taxes shall be included in the Statement
      of
      Work, which Company shall promptly update as required to keep such information
      current during the Term, and Company shall be solely responsible for the
      accuracy of such information. Company shall be responsible for the collection
      and payment of all sales taxes, the preparation and filing of all sales tax
      documentation and the compliance with all sales tax laws. Accretive Commerce
      shall have no such responsibilities for payment or collection of any such taxes
      unless otherwise required by law. Company shall defend, indemnify and hold
      harmless Accretive Commerce, employees, officers, directors, agents, successors
      and permitted assigns from and against any and all claims, suits, actions,
      debts, liabilities, damages, costs, charges and expenses, including without
      limitation, court costs and attorneys’ fees, arising out of or relating to
      Company’s failure to properly and timely file and pay applicable
      taxes.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      14. MONETARY
        DEFAULT.
        If
        Company is in breach of the terms governing the payment of any fees, charges,
        invoices or other amounts due hereunder to Accretive Commerce, Accretive
        Commerce shall at its discretion (i) charge a finance charge of one and
        one half percent (1.5%) per month of such past due fees, charges, invoices
        or
        other amounts and (ii) upon five Business Days prior written notice, cease
        providing Services and performing its obligations under this Agreement and/or
        terminate this Agreement provided that the finance charge set forth in (i)
        hereof shall continue on all outstanding balances. In the event Accretive
        Commerce incurs any fees or costs (including without limitation, any reasonable
        attorneys’ fees) in collecting outstanding balances and enforcing this
        Agreement, Company shall be liable for all such fees and costs. If Company
        in
        good faith disputes any amount billed, Company must report to Accretive
        Commerce, in writing prior to the date the payment for the disputed amount
        is
        due but in no event later than fifteen
        Business Days after Company’s receipt of invoice, the reasons for such dispute.
        Accretive Commerce and Company agree to work diligently to resolve the dispute
        within 15 days after the receipt of such written notice by Accretive Commerce.
        Failure to resolve such dispute during such time period shall allow Accretive
        Commerce to terminate the Agreement and to seek all available remedies.

    

     

    15. OTHER
      DEFAULTS.
      If
      either Company or Accretive Commerce believes the other party is in material
      breach of any of its non-monetary obligations under this Agreement as a result
      of any reason other than Force Majeure, the party believing that such a breach
      by the other party has occurred shall, within 30
      days of
      discovery of such alleged breach, give written notice to the other party
      declaring a material breach of this Agreement and specifying the nature of
      the
      breach. If the alleging party fails to give written notice of an alleged
      material breach within 15
      days of
      its discovery of such alleged breach, such alleging party shall lose any rights
      to terminate this Agreement
      based
      upon the alleged material breach. The breaching party shall have 15
      days in
      which to cure such breach or, if such breach cannot be completely cured within
      15
      days, a
      reasonable time to cure such breach as long as the breaching party is diligently
      pursuing a cure for the breach. 

     

    16. FORCE
      MAJEURE.
      Neither
      Accretive Commerce nor Company shall be liable for any delay or failure in
      performance under this Agreement, any failure or delay in satisfying any
      warranty, representation or obligation contained herein, or interruption of
      service resulting, directly or indirectly, from acts of God, civil or military
      authority, acts of public enemies, acts of terrorism, war, riot, strikes, labor
      disputes, power outage, accidents, fire, explosions, earthquakes, floods, the
      elements, acts or omissions of third parties that are not subject to either
      party’s control, or any similar cause beyond the reasonable control of such
      party (a “Force Majeure”), so long as, following the cessation of such cause,
      such party uses its reasonable efforts to resume its performance hereunder.
      If
      Accretive Commerce is unable to perform the Services due to a Force Majeure,
      then Accretive Commerce may out-source Services on a temporary basis pursuant
      to
      the Section of this Agreement entitled, Services. Force Majeure shall not be
      an
      excuse for Company not meeting any financial obligation hereunder with respect
      to the timely payment for services. 

     

    17. TERM
      AND TERMINATION.

     

    
      	
              a.

            	
              Term.
                The term of this Agreement shall commence upon the Effective Date
                and
                shall continue until every Statement of Work under this Agreement
                has
                expired or been terminated in accordance with the terms of this Agreement.
                For the Statement of Work relating to the Services for the Nova
                Skin Care System
                line of products sold through direct response advertising, this Agreement
                will
                be effective on November ____, 2006 will last one (1) year. After
                initial
                term is complete, Agreement will continue on a month-to-month basis
                and
                will terminate when Company gives Accretive Commerce thirty (30)
                days
                written notice.

            

    

     

    
      	
              b.

            	
              Termination.
                In addition to any other remedies available to either party, this
                Agreement may be terminated upon the occurrence of any of the following,
                provided that any amounts owing to Accretive Commerce through the
                date of
                termination (including without limitation, any Close-Down Expenses)
                shall
                be payable to Accretive Commerce notwithstanding any such
                termination:

            

    

     

    
      	i.	
              Monetary
                Default. Accretive Commerce shall have the termination rights described
                in
                the Section of this Agreement entitled Monetary
                Default.

            

    

     

    
      	ii.	
              Bankruptcy.
                Either party may terminate this Agreement, effective immediately
                upon
                giving written notice if the other party files a petition in bankruptcy
                or
                files for a reorganization or for the appointment of a receiver or
                trustee
                of all or substantially all of such party’s property, or makes an
                assignment or petitions for or enters into an arrangement for the
                benefit
                of creditors, or if a petition in bankruptcy is filed against the
                other
                party which is not discharged within 60
                days thereafter.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	
            	iii.	
              Non-Monetary
                Default. A material default by either party pursuant to the Section
                entitled Other Defaults under this Agreement, which is not cured
                within
                the time periods stated therein, shall entitle the non-breaching
                party to
                terminate the Agreement upon written
                notice.

            

    

     

    18. REPRESENTATIONS
      AND WARRANTIES.

     

    
      	
              a.

            	
              Accretive
                Commerce and Company. Accretive Commerce and Company each hereby
                individually represent and warrant that:

            

    

     

    
      
        
          
            	
                  	i.	
                    Its
                      execution, delivery and performance of this Agreement (1) have
                      been
                      authorized by all necessary corporate action, (2) do not and
                      shall not
                      violate the terms of any law, regulation, or court order to
                      which such
                      party is subject or the terms of any agreement, contract or
                      other
                      instrument to which it is a party, and (3) are not subject
                      to the consent
                      or approval of any other person, firm or corporation. 

                  

          

        

      

    

     

    
      
        	
              	ii.	
                This
                  Agreement is a legal, valid, and binding obligation of Accretive
                  Commerce
                  and Company, as the case may be, enforceable in accordance with
                  its terms,
                  except as limited by bankruptcy and other laws of general application
                  relating to or affecting the enforcement of creditors’ rights.

              

      

    

     

    
      
        	
              	iii.	
                It
                  is
                  not subject to any pending or threatened litigation or governmental
                  action
                  that
                  could interfere with its performance of its obligations
                  hereunder.

              

      

    

     

    
      	
              b.

            	
              Company.
                Company hereby represents and warrants
                that:

            

    

     

    
      
        	
              	i.	
                It
                  has
                  and will maintain during the term of this Agreement,
                  all necessary authority from all of the corporations, partnerships
                  and
                  individuals whose products are offered for sale by Company, to
                  use their
                  trademarks, service marks and other intellectual property for the
                  purposes
                  of conducting Company’s business. Company’s business as conducted, or as
                  currently outlined
                  herein to be conducted by Accretive Commerce on behalf of Company,
                  does
                  not and will not cause Company or Accretive Commerce to infringe
                  or
                  violate any patents, trademarks, service marks, trade names, copyrights,
                  licenses, trade secrets or other intellectual property rights of
                  any other
                  person or entity.

              

      

    

     

    
      	
            	ii.	
              Its
                assets exceed its liabilities,
                it
                is
                able to pay its debts as they mature, and that it
                is
                adequately capitalized.

            

    

     

    19. INDEMNIFICATION.

     

    
      	
              a.

            	
              Accretive
                Commerce shall indemnify, defend and hold Company harmless from and
                against any and all claims, suits, actions, debts, damages, injuries,
                costs, charges, and expenses finally awarded, including without limitation
                court costs and reasonable attorneys’ fees (collectively “Company
                Damages”), which Company may at any time incur to the extent such Company
                Damages arise out of or relate to Accretive Commerce’s negligence
                or
                willful misconduct.

            

    

     

    
      	
              b.

            	
              Company
                shall indemnify, defend and hold Accretive Commerce harmless from
                and
                against any and all claims, suits, actions, debts, damages, injuries,
                costs, charges, and expenses finally awarded, including without limitation
                court costs and reasonable attorneys’ fees (collectively “Accretive
                Commerce Damages”), which Accretive Commerce may at any time incur to the
                extent such Accretive Commerce Damages arise out of or relate to
                (i)
                Company’s negligence or willful misconduct, (ii) use or consumption of the
                Merchandise, or (iii) Company’s breach of Sections
                17(b)(i)
                or 17(b)(ii) above.

            

    

     

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                c.

              	
                The
                  indemnification provisions of this Section 18 apply only to claims
                  made
                  against either party hereto by any third party and not to any claims
                  made
                  by either party hereto against the other. A party hereto seeking
                  indemnity
                  hereunder is referred to as the “Indemnified Party” and the other party to
                  which indemnity is sought hereunder is referred to herein as the
                  “Indemnifying Party”. An Indemnified Party under this Agreement shall with
                  respect to claims asserted against such party by any third party,
                  give
                  prompt written notice to the Indemnifying Party of any liability
                  which
                  might give rise to a claim for indemnity under this Agreement;
                  provided,
                  however, that any failure to give such notice will not waive any
                  rights of
                  the Indemnified Party except to the extent the rights of the Indemnifying
                  Party are materially prejudiced. The Indemnifying
                  Party shall have the right, at its election, to take over the defense
                  or
                  settlement of such claim by giving written notice to the Indemnified
                  Party
                  at least 15 days prior to the time that an answer or other responsive
                  pleading or notice with respect thereto is required or ten days
                  after
                  notice, whichever is later. If the Indemnifying Party makes such
                  election,
                  it may conduct the defense of such claim through counsel of its
                  choosing
                  (subject to the Indemnified Party’s approval of such counsel) and shall be
                  solely responsible for the expenses of such defense and shall be
                  bound by
                  the results of its defense or settlement of the claim. The Indemnifying
                  Party shall not settle any such claim without prior notice to and
                  consultation with the Indemnified Party, no such settlement involving
                  any
                  equitable relief or which might have an adverse effect on the Indemnified
                  Party may be agreed to without the written consent of the Indemnified
                  Party.
                  So long as the Indemnifying Party is diligently contesting any
                  such claim
                  in good faith, the Indemnified Party may pay or settle such claim
                  only at
                  its own expense and the Indemnifying Party will not be responsible
                  for the
                  fees of separate legal counsel to the Indemnified Party, unless
                  the named
                  parties to any proceeding include both parties and representation
                  of both
                  parties by the same counsel would be inappropriate. If the Indemnifying
                  Party does not make such election, or having made such election
                  does not,
                  in the reasonable opinion of the Indemnified Party proceed diligently
                  to
                  defend such claim, then the Indemnified Party may (after written
                  notice to
                  the Indemnifying Party), at the expense of the Indemnifying Party,
                  take
                  over the defense of and proceed to handle such claim in its discretion
                  and
                  the Indemnifying Party shall be bound by any defense or settlement
                  that
                  the Indemnified Party may make in good faith with respect to such
                  claim.
                  The parties agree to cooperate in defending such third party claims
                  and
                  the Indemnified Party shall provide such cooperation and such access
                  to
                  its books, records and properties as the Indemnifying Party shall
                  reasonably request with respect to any matter for which indemnification
                  is
                  sought hereunder; and the parties hereto agree to cooperate with
                  each
                  other in order to ensure the proper and adequate defense thereof
                  with
                  regard to claims of third parties for which indemnification is
                  payable
                  hereunder, such indemnification shall be paid by the Indemnifying
                  Party
                  upon the earlier to occur of:

              

      

       

    

    
      	
            	
              i.

            	
              the
                entry of a non-appealable judgment against the Indemnified Party
                and the
                expiration of any applicable appeal period, or if earlier, five days
                prior
                to the date that the judgment creditor has the right to execute the
                judgment;
                or 

            

    

     

    
      	
            	ii.	
              a
                settlement of the claim, provided that if a judgment or settlement
                provides that payments may be made in installments, that the
                indemnification payments required -to be made hereunder in connection
                therewith shall be payab1e in a like manner.

            

    

     

    
      	
              d.

            	
              Notwithstanding
                the foregoing, providing that there is no dispute as to the applicability
                of indemnification, the reasonable expenses of counsel to the Indemnified
                Party shall be reimbursed on a current basis by the Indemnifying
                Party if
                such expenses are a liability of the Indemnifying Party. With regard
                to
                other claims for which indemnification is payable hereunder, such
                indemnification shall be paid promptly by the Indemnifying Party
                upon
                demand by the Indemnified Party.

            

    

     

    20. LIMITATION
      OF LIABILITY.

     

    
      	
              a.

            	
              Notwithstanding
                any other provision of this Agreement, Accretive Commerce shall not
                be
                liable to Company for any indirect, special, incidental, punitive
                or
                consequential damages of any nature whatsoever (including but not
                limited
                to lost profits or interruption of business) regardless of the form
                of
                action, whether in contract, tort, or other legal or equitable theory
                (including negligence, strict liability, breach of contract or otherwise),
                even if Accretive Commerce has been previously notified of the possibility
                of such damages. 

            

    

     

    
      	
              b.

            	
              Without
                limiting the foregoing, Accretive Commerce’s aggregate liabilities under
                this Agreement for any given calendar
                year
                regardless of the number of claims and the form of action, whether
                in
                contract, tort, or other legal or equitable theory (including negligence,
                strict liability, breach of contract or otherwise), shall be limited
                to
                direct damages in the lesser amount of: (1)
                payments actually received by Accretive Commerce from
                Company under this Agreement for
                such calendar
                year,
                or (2) $1,000,000

            

    

     

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    21. INSURANCE.

    
      	a.	
              Company
                agrees to maintain insurance, at its sole cost and expense, against
                loss
                or damage by fire or other casualty to Company’s Merchandise on the
                premises of Accretive Commerce, and against any claims and liability
                growing out of product liability, advertising liability or trademark
                or
                service mark, patent or copyright infringement, and to list Accretive
                Commerce as an additional insured thereunder.  Such insurance will be
                maintained with insurers (i) with rating of A-VII or better
                in the current Best’s Insurance Reports published by A. M. Best and
                (ii) that are qualified to do business in the state where the
                inventory is warehoused.  Attached hereto as Exhibit B is the
                initial Certificate of Insurance for Company reflecting such coverage.
                Company shall provide an updated Certificate of Insurance to Accretive
                Commerce each year on the anniversary of the Effective Date or upon
                request by Accretive Commerce.

            

    

     

    
      	
              b.

            	
              Accretive
                Commerce shall not be responsible for the provision or maintenance
                of any
                insurance coverage for the Merchandise or other inventory or for
                Company
                or its subsidiaries or respective businesses, products, goods and
                property. 

            

    

     

    22. PROCESS;
      INTELLECTUAL PROPERTY.

     

    
      	
              a.

            	
              Company
                acknowledges that Accretive Commerce owns all right, title and interest
                in
                and to, or is licensed to use, the Process and that Company has no
                right
                or interest whatsoever in such Process unless jointly developed and
                agreed
                upon in writing by both parties in advance of said joint development.
                

            

    

     

    
      	
              b.

            	
              Accretive
                Commerce acknowledges that Company owns all right, title and interest
                in
                the Data, and Accretive Commerce has no right or interest whatsoever
                in
                such Data. 

            

    

     

    
      	
              c.

            	
              ACCRETIVE
                COMMERCE® is a registered service mark owned by Accretive Commerce. Except
                as set forth in Section 35 hereunder, no rights to the use of Accretive
                Commerce’s service marks are granted herein, and any right to use
                Accretive Commerce’s marks, subsequently granted, will terminate
                immediately upon the expiration or termination of this Agreement.
                If
                Company is subsequently granted the right to use any of Accretive
                Commerce’s service marks, Company shall use Accretive Commerce’s marks
                only
                and strictly
                in accordance with the quality control and trademark usage policies
                of
                Accretive Commerce. Failure to comply with such policies will result
                in
                termination of the right to use such
                marks.

            

    

     

    
      	
              d.

            	
              Except
                as set forth in Section 35 hereunder, no rights to use of Company’s marks
                are granted herein, and any right to use Company marks, subsequently
                granted, will terminate immediately upon the expiration or termination
                of
                this Agreement. Accretive Commerce shall use Company’s marks only and
                strictly in accordance with the quality control and trademark usage
                policies of Company. Failure to comply with such policies will result
                in
                termination of the right to use such
                marks.

            

    

     

    23. TERRORISM
      OR HAZARDOUS SUBSTANCES.
      

     

    
      	
              a.

            	
              Company
                represents and warrants to Accretive Commerce that Company shall
                not
                generate, store or dispose of any Hazardous Substance on, under or
                about
                Accretive Commerce premises in violation of any federal, state or
                local
                environmental law, regulation or rule presently in effect or promulgated
                in the future as such laws, regulations, or rules may be amended
                from time
                to time, and that the Merchandise and Non-Merchandise do not contain
                any
                Hazardous Substance. Company shall indemnify, and defend, protect,
                and
                hold harmless Accretive Commerce from any claims to the extent arising
                out
                of or relating to, or alleged to arise out of or relate to, any breach
                of
                these representations and warranties.

            

    

     

    
      	
              b.

            	
              Prior
                to the processing of Merchandise, the Company shall give to Accretive
                Commerce policies and procedures to follow in the event of any acts
                of
                terrorism or consumer complaints with respect to Hazardous
                Substances.
                Provided Accretive Commerce follows such policies and procedures,
                Accretive Commerce shall have no liability to the Company arising
                from
                such any acts of terrorism, Hazardous
                Substance
                or
                consumer complaint, and the Company shall expressly defend, indemnify
                and
                hold harmless Accretive Commerce from any and all claims, damages,
                demands, causes of action, losses, liabilities, injuries, costs and
                expenses (including but not limited to reasonable attorney’s fees) arising
                from such an event.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    24. COMPLIANCE
      WITH LAWS.
      Company
      and Accretive Commerce shall comply with all laws, rules and regulations,
      whether local, state, or federal, applicable to the sale of Merchandise and
      to
      the provision of Services, respectively.

     

    25. CONFIDENTIALITY;
      NON-SOLICITATION.

     

    
      	
              a.

            	
              During
                the Term of this Agreement, it is anticipated that Accretive Commerce
                and
                Company will come into possession of certain proprietary information
                belonging to the other, including but not limited to:
                

            

    

     

    
      	
            	i.	
              in
                the case of Company, its financial condition, marketing records,
                merchandising records, customer records and customer files
                and

            

    

     

    
      	
            	ii.	
              in
                the case of Accretive Commerce, its financial condition, cost structures,
                staffing levels, systems information, monitoring records, customer
                records, customer files, processes, trade secrets, sales forecasts,
                general business plans and other confidential or proprietary information
                

            

    

     

    
      	
            	iii.	
              all
                such information relating to Company or Accretive Commerce shall
                constitute “Confidential Information”, the party who receives the
                Confidential Information being the “Receiving Party”, and the party to
                whom such Confidential Information relates being the “Disclosing
                Party”.

            

    

     

    
      	
              b.

            	
              Except
                as permitted in
                connection with an out-sourcing permitted under
                Section 3.c,
                Accretive Commerce and Company agree that each will not, during the
                Term
                hereof and five (5) years thereafter, furnish, disclose, or make
                accessible to any third party any of the other party’s Confidential
                Information unless otherwise instructed by the Disclosing Party in
                writing; provided, however, that Confidential Information shall not
                include any information that: 

            

    

     

    
      	
            	i.	
              at
                the time of disclosure by the Disclosing Party is generally available
                to
                and known by the public other than as a result of its disclosure
                by such
                party,; 

            

    

     

    
      	
            	ii.	
              was
                available to the Receiving Party on a non-confidential basis from
                a source
                other than the Disclosing Party, provided that such source is not
                bound by
                a confidentiality agreement, or contractual or fiduciary obligation
                with
                the Disclosing
                Party;
                or
                

            

    

     

    
      	
            	iii.	
              has
                been independently acquired or developed by the Receiving Party without
                violating any obligations under this Agreement, or of any other agreement
                between Company and Accretive
                Commerce.

            

    

     

    
      	
              c.

            	
              Accretive
                Commerce agrees that Company’s customer files maintained
                by Accretive Commerce will
                not be made available for use by anyone other than Company, without
                Company’s specific prior written
                permission.

            

    

     

    
      	
              d.

            	
              Company
                agrees that it shall not at any time during the Term or within three
                years
                after the termination or expiration of this Agreement, solicit, interfere
                with, employ or endeavor to entice away from Accretive Commerce (or
                any
                Accretive
                Commerce
                subsidiary or affiliate) any employee, consultant, agent or other
                client
                of Accretive Commerce.

            

    

     

    26. NOTICES.
      Any and
      all notices and all communication provided for in this Agreement shall be given
      in writing. Such notices and other communications shall be deemed given when
      received, when delivered by hand, by confirmed facsimile transmission or when
      deposited in the United States Mail, Registered or certified, with proper
      postage prepaid, and addressed as specified in the Statement of Work, or to
      such
      other address as Accretive Commerce or Company may designate to the other in
      writing.

     

    27. NON-ASSIGNMENT.
      This
      Agreement shall inure to the benefit of and be binding upon the parties and
      their respective successors and permitted assigns. Except as expressly set
      forth
      in this Agreement, the parties do not intend the benefits of this Agreement
      to
      inure to any third party, and nothing contained herein shall be construed as
      creating
      any right, claim or cause of action in favor of any third party against either
      of the parties hereto. Except
      as
      permitted by Section
      3.c,
      neither
      party
      may assign this Agreement or any rights hereunder or delegate any of its
      obligations hereunder without the prior written consent of the other party,
      and
      any such attempted assignment shall be void; provided however, either party
      may
      assign this Agreement to any person, firm or corporation that purchases all
      or
      substantially all of the stock or assets of either party or to any person,
      firm
      or corporation into which or with which either party consolidates or merges
      and
      provided further that Accretive Commerce may assign this Agreement
      to any
      of its affiliates, subsidiaries, or its parent company.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    28. AMENDMENTS.
      This
      Agreement shall not be modified or amended except by a written amendment
specifically
      referencing this Agreement and signed by authorized representatives of both
      Accretive Commerce and Company. Except as expressly permitted herein, the terms
      of any Instrument shall supplement and not replace or amend the terms or
      provisions of this Agreement, and the terms and provisions of this Agreement
      shall control in the event of any conflict between such terms
      thereof.

     

    29. GOVERNING
      LAW.
      This
      Agreement has been entered into and shall be governed, construed, and
      interpreted in accordance with the laws of the State of California without
      reference to any conflicts of law principles. The parties hereby consent to
      the
      exclusive jurisdiction of the state and federal courts located in California
      to
      resolve any disputes arising hereunder. The parties waive any objection to
      such
      forum based on lack of personal jurisdiction, forum non conveniens or
      otherwise.

     

    30. RELATIONSHIP.
      Nothing
      contained in this Agreement shall be construed to imply a joint venture,
      partnership or principal/agent relationship between the parties. Except as
      specifically set forth herein, neither party by virtue of this Agreement shall
      have any right, power or authority to act or create any obligations, express
      or
      implied, on behalf of, or for the use of the other party, and Accretive Commerce
      and Company shall not be obligated, separately or jointly, to any third party
      by
      virtue of this Agreement.

     

    31. HEADINGS.
      The
      headings and section numbers appearing in this Agreement are inserted only
      as a
      matter of convenience and in no way define, limit, construe or otherwise
      describe the scope or intent of the sections of this Agreement.

     

    32. SEVERABILITY.
      If any
      one or more provisions of this Agreement shall be invalid, illegal or
      unenforceable in any respect, the validity, legality and enforceability of
      the
      remaining provisions contained herein shall not in any way be affected or
      impaired; provided, however, that in such case the parties agree to use their
      commercially reasonable efforts to achieve the purpose of the invalid provision
      by a new legally valid provision.

     

    33. NO
      WAIVER.
      No
      failure, waiver or delay of either party’s exercise or partial exercise of any
      right or remedy under this Agreement shall operate to limit, impair, preclude,
      cancel, waive or otherwise affect such right or remedy. Any waiver by either
      party of a breach by the other party of any provision of this Agreement shall
      not imply a waiver of future compliance with the provision, and the provision
      shall remain in full force and effect. Notwithstanding anything to the contrary
      in this Agreement, all rights and remedies under this Agreement are cumulative
      to, and not exclusive of, any rights or remedies otherwise available.

     

    34. ENTIRE
      AGREEMENT.
      This
      Agreement, any exhibits and addenda attached hereto, properly executed
      Statements of Work, orders for Special Services and properly delivered notices,
      contain and embody the entire agreement of the parties hereto, and no
      representations, inducements, or agreements, oral or otherwise made at any
      time
      between the parties or with any third party relating to the subject matter
      hereof which are not contained in this Agreement or in the exhibits or addenda,
      if any, shall be of any force or effect. In
      the
      event of a conflict between the terms of this Agreement and those of a Statement
      of Work, the provisions of the Statement of Work shall take precedence, but
      only
      for purposes of the services and deliverables covered in such Statement of
      Work.

     

    35. COUNTERPARTS.
      This
      Agreement may be executed in one or more counterparts, and each of which when
      so
      executed shall be an original, but all of which shall constitute one and the
      same instrument.

     

    36. JOINT
      MARKETING.
      Company
      may provide a statement to be used in an Accretive Commerce press release,
      which
      announces the choice of Accretive Commerce to provide Services. Company may
      authorize Accretive Commerce to use Company’s logo on the Accretive Commerce
      website, at tradeshows and events and on marketing collateral. Company is not
      obligated to allow joint marketing with Accretive Commerce but will consider
      it
      during the course of the contract; any use of Company name and/or logo must
      be
      approved in writing by Company representative. Accretive Commerce and Company
      may participate in other joint marketing activities, as deemed appropriate,
      when
      mutually agreed to by both companies.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    37. CONSENT.
      Whenever this Agreement requires either party’s approval or consent, such
      approval or consent shall not be unreasonably withheld or delayed.

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Agreement to be executed by their duly empowered
      representatives as of the Effective Date.

    

    
      	
              Accretive
                Commerce, Inc. (“Accretive
                Commerce”)

            	 	
              Valcent
                Products, Inc. (“Company”)

            
	 	 	 
	
              By:
                /s/  Doug Willie

            	 	
              By:
                /s/  Eric Enciso

            
	
              Name:
                Doug Williw

            	 	
              Name:
                Eric Enciso

            
	 	 	 
	
              Title:
                Division President

            	 	
              Title:
                President, Consumer Products

            
	 	 	 
	
              Date:
                12/02/06

            	 	
              Date:
                12-01-06

            

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    STATEMENT
      OF WORK

    For

    ____________________________

    

    Accretive
      Commerce will provide the following services:

    

    
      	
              ·

            	
              Inventory
                management systems for tracking parts, products and
                offers/upsells

            

    

    
      	
              ·

            	
              Inventory
                receipt and put away within 24 hours of delivery of inventory at
                Accretive
                Commerce warehouse

            

    

    
      	
              ·

            	
              Inventory
                storage

            

    

    
      	
              ·

            	
              Integration
                with Company’s third party call center ImPulse and third party webstore
                ______________ for daily download of orders

            

    

    
      	
              ·

            	
              Integration
                with _____________ payment processor for credit card, authorization
&
                settlement

            

    

    
      	
              ·

            	
              Printing
                of packing slip or shipping label and shipping approved orders direct
                to
                consumer within 24 hours of receipt via mutually agreed freight carrier
                on
                Accretive Commerce account

            

    

    
      	
              ·

            	
              Pre-sale
                and post-sale customer support (including save-the-sale options)
                via an
                Accretive Commerce owned toll free number during published Accretive
                Commerce hours.

            

    

    
      	
              ·

            	
              Transfer
                of product calls back to Company’s customer service as
                necessary

            

    

    
      	
              ·

            	
              Receipt
                and processing of customer returned
                orders

            

    

    
      	
              ·

            	
              Transmission
                of credit card refunds to payment processor ______________ for returned
                orders 

            

    

    
      	
              ·

            	
              Repacking
                and refurbishment of returned
                inventory

            

    

    
      	
              ·

            	
              Disposal
                of obsolete and/or damaged inventory as approved by
                Company

            

    

    
      	
              ·

            	
              Unlimited
                secure access to the Accretive Commerce online reporting
                system

            

    

    
      	
              ·

            	
              Physical
                inventory upon Company request

            

    

    
      	
              ·

            	
              Merchandise
                Inventory shrinkage due to Accretive Commerce’s negligence or willful
                misconduct will not exceed 3% (as referenced in section
                11a)

            

    

    
      	
              ·

            	
              Non-Merchandise
                Inventory shrinkage due to Accretive Commerce’s negligence or willful
                misconduct will not exceed 10% (as referenced in section
                11a)

            

    

    

    

    Accretive
      Commerce warehouse location:

    

    12154
      Montague Avenue

    Pacoima,
      CA 91331

    

    

    Accretive
      Commerce will charge Company the following prices for the services listed
      above:

    

    
      
        
           

        

        
        

      

      
        14

        
          

        

      

      
        
        

        
        

      

    

    Nova
      Skincare System Pricing

    Los
      Angeles Facility

     

    
      	 ACCOUNT
              SET-UP	 
	 	 
	 1) 
              Initial set up        	 $750.00
	 	 
	 TRANSACTION
              PRICING	 
	 	 
	 Fulfillment	 
	 	 
	 2) Download
              or upload order charge     	 $ .05 / each
	 3) Credit
              card authorization or check processing   	 $ .05 / attempt
	 4) Order
              processing fees 
              (prepackaged / ship-ready / <15 lbs.) 	 $ .60 / each
	    a) 10,000+
              orders per week     	 
	    b) 5,001-10,000
              orders per week    	  $
              .65 / each
	    c) 0-5,000
              orders per week    	  $
              .70 / each
	 5)
              Additional item order processing charges (products into shipping
              box or bag)	 
	    a) 10,000+
              orders per week     	 $ .10 / each
	    b) 5,001-10,000
              orders per week     	 $ .15 / each
	    c) 0-5,000
              orders per week     	 $ .20 / each
	 6) Strapping
              fee (if required)      	 $ .15 / each
	 7)
              Additional
              item order processing charges (literature)	 
	    a) 10,000+
              orders per week     	 $ .05 / each
	    b) 5,001-10,000
              orders per week     	 $ .10 / each
	    c) 0-5,000
              orders per week     	 $ .15 / each
	 8)
              Credit
              card resubmission	 
	 a) Resubmit
              declined cards      	 $ .50 / each
	 b) Credit to customer’s credit
              card     	 $ .50 / each
	 c) Credit to customer by
              check      	 $2.00 / each
	 9) Packaging,
              Material and Labor Costs (as required)	 Cost + 15 %
	 10) Order
              cancellation	  $5.00
              / order
	 11) Restocking/General
              labor	  $33.00
              / hour
	 12)
              Receiving
              	 
	 a) Floor loaded container	 $150.00 / each
	     b)
              Partial container	 $33.00 / hour 
	 13) Refurbish
              / repack	 Quoted by product
	 14) Inventory
              Storage (by month)	 $12.00 / pallet
	 15) Return
              Order Processing	  $1.50
              / each

    

     

    

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

    TRANSACTION
      PRICING (continued)

     

    
      	 	 
	 Customer
              Service	 
	 	 
	 17) In
              / outbound telephone call / e-mail inquiry & response  	 $ .86 / minute
	 18) IVR
              charge        	 $. 25 / minute
	 19) Customer
              e-mail notification      	 $ .03 / each
	     -
              Includes order status and shipping notification	 
	 20) Mail
              response (all mail response pricing + postage)	 
	     a) Form
              letter       	 $1.00 / each
	     b) Custom
              letters       	 $2.00 / each
	     
c) Postcards
              (client supplies card stock)    	 $ .25 / each
	 21) Fax
              processing - customer service inquiries    	 $1.00 / each
	 22) Data
              entry (i.e. check orders / rebates)    	 $ .75 / each
	 23) Merchandise
              return label      	 $1.25 / each
	     -
              RMA label printed and mailed to customer	 
	 24) Customer
              service center phone T-1 access    	 $150.00 / month
	 	 
	 FREIGHT /
              SHIPPING	 
	 	 
	 25) Reserve
              / freight account      	 1 month advance
	    -
              Equal
              or greater than one month’s expense	 
	     -
              Payment
              Terms: Services 7 days, Freight advanced, Postage Prepaid	 
	 26)
              Freight
              / postage billed as quoted 	 
	 27) Rush
              / priority orders       	 $2.00 / each
	 28) Canada
              / Puerto Rico orders, international orders   	 $2.50 / each
	 29) 3rd
              party billing (includes consignee billing)    	 $2.00 / each
	 30) USPS
              Priority Mail Delivery Confirmation    	 $. 60 / each
	     a.
              Standard
              Mail “B” delivery confirmation 	 
	 31) USPS
              Priority Mail Signature Confirmation    	 $1.25 / each
	 32) UPS
              Call Tags, tracing or claim    	  $5.00
              / each
	 	 
	 CLIENT SERVICES /
              IT	 
	 	 
	 33) Account
              management (as needed)     	 $75.00 / hour
	 34) Database
              / program changes after initial set-up / approval  	 $85.00 / hour
	 35) Custom programming (as
              needed)     	 $150.00 /
              hour

    

     

    Exhibit
      B Company’s
      Certificate of Insurance

     

    

    To
      be
      provided prior to contract execution

     

    16

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