Document:

Exhibit 10.1

                      PROCESS AND PRODUCT LICENSE AGREEMENT

                                     BETWEEN

                               BALCHEM CORPORATION

                                       AND

                   PROJECT MANAGEMENT AND DEVELOPMENT CO., LTD

                              FOR CHOLINE CHLORIDE

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                                TABLE OF CONTENTS
                                -----------------

ARTICLE       TITLE                                                         PAGE
-------       -----                                                         ----

     1        Definitions....................................................  2
     2        Balchem's Obligations and Grant of Rights......................  9
     3        Consideration.................................................. 14
     4        Exchange of Improvements....................................... 16
     5        Secrecy........................................................ 17
     6        Warranties, Indemnities and Liabilities........................ 20
     7        Expansion of Production Capacity............................... 23
     8        Visit to Plant; Design and Operating Data; Further Exchange
              of Improvements................................................ 24
     9        Miscellaneous.................................................. 24

APPENDIX
--------

     I        Form Of Secrecy Undertaking

     II       Basic Engineering Scope of  Work & Delivery Schedule

     III      Certificate Of Acceptance

     IV       Performance Guarantees

     V        Outline Of Training Programme

     VI       Draft Tri Partite Agreement

     VII      In Kingdom Services- Scope & Terms & Conditions

     VIII     Project Design Basis

     IX       Battery Limit Interface Diagram

     X        Minimum Contents Of The Deliverable Documents

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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                                LICENSE AGREEMENT

This  LICENSE  AGREEMENT  made this 7th day of  November  2005,  by and  between
Project Management and Development Co., Ltd.,  corporation under the laws of the
United Kingdom, with an office located at P.O. Box 11314, Al-Jubail, 31961, KSA,
(hereinafter  referred to as "PMD"), which expression shall be deemed to include
its successors and permitted assignees, of the one part,

                                       And

Balchem  Corporation,  a corporation of the State of Maryland,  U.S.A.,  with an
office  at 52  Sunrise  Park  Road,  PO Box 600,  New  Hampton,  New York  10958
(hereinafter  referred to as  "BALCHEM"),  which  expression  shall be deemed to
include its successors and permitted assignees, of the other part.

                                    PREAMBLE

                                     WHEREAS

1.     PMD is  arranging  for the  construction  and  subsequent  operation of a
       petrochemical facility in the Kingdom of Saudi Arabia.

2.     As part of the  overall  petrochemical  plan  referenced  in  Paragraph 1
       above,  PMD  intends  to  construct  and  operate a  facility  capable of
       producing  20,000 MTY (as defined  below) of  seventy-five  percent (75%)
       aqueous choline chloride or its intermediate, trimethylammonium chloride.

3.     BALCHEM owns and has the right to grant licenses under certain  know-how,
       trade secrets and other intellectual  property related to the manufacture
       and use of choline chloride.

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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4.     In order to establish said choline chloride production plant, PMD desires
       to  license  from  BALCHEM  TECHNICAL  INFORMATION  necessary  to design,
       construct, erect and operate the PLANT, as well as offer for sale, market
       and sell the PRODUCT  (all as defined  below),  and BALCHEM is willing to
       grant and supply to PMD such license and TECHNICAL INFORMATION,  to allow
       the  use of  such  TECHNICAL  INFORMATION  by PMD  under  the  terms  and
       conditions hereinafter set forth.

NOW, THEREFORE,  in consideration of the mutual covenants and obligations of the
parties as set forth  herein,  IT IS HEREBY  AGREED BY AND  BETWEEN  THE PARTIES
HERETO as follows:

                            ARTICLE 1.0 - DEFINITIONS
                            -------------------------

In this  LICENSE  AGREEMENT,  the  following  words and  phrases  shall mean and
include as hereafter defined:

1.1    AFFILIATE
       Affiliate  shall mean any entity that is controlled by,  controls,  or is
       under  common  control with BALCHEM or PMD, as the case may be, as of the
       Effective  Date. For such purpose the term "control"  means (a) direct or
       indirect  ownership  of more  than  fifty  percent  (50%)  of the  voting
       interest  in the entity in  question,  or more than fifty  percent  (50%)
       interest in the income of the entity in question; provided, however, that
       if local law requires a minimum  percentage of local  ownership,  control
       will be  established  by direct or indirect  beneficial  ownership of one
       hundred  percent  (100%) of the maximum  ownership  percentage  that may,
       under such local law, be owned by foreign  interests;  or (b) possession,
       directly or indirectly,  of the power to direct or cause the direction of
       management  or  policies  of the  entity  in  question  (whether  through
       ownership of  securities  or other  ownership  interests,  by contract or
       otherwise).

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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1.2    AGREEMENT or LICENSE AGREEMENT
       This PRODUCT and PROCESS LICENSE AGREEMENT, including all appendices.

1.3    BATTERY  LIMIT Means the overall PDP scope  limits for the PLANT for each
       of the feedstock,  raw materials,  utilities including waste streams, and
       product streams, as depicted in Appendix IX.

1.4    CERTIFICATE OF ACCEPTANCE
       Means a  certificate  to be issued by PMD to BALCHEM in  accordance  with
       Appendix  III which  certificate  shall  constitute  conclusive  evidence
       (except in the case of fraud) and in any proceedings in any  jurisdiction
       that  the  Process  Guarantees  have  been or are  deemed  to  have  been
       successfully completed.

1.5    CONFIDENTIAL INFORMATION
       Shall have the meaning ascribed to it in Article 5 of this Agreement.

1.6    DATE OF START-UP
       Means the date notified in writing by PMD to BALCHEM,  upon the aggregate
       production of 180 metric tons of PRODUCT, from the PLANT.

1.7    PDP
       The technical documentation, process data, process specifications, design
       drawings,  and all  other  related  documents,  design  reviews,  process
       hazards  reviews,  as described in Appendix  II,  sufficient  for the EPC
       CONTRACTOR   to  carry  out  the   detailed   engineering,   procurement,
       construction  and  start-up  of the PLANT so the PLANT  can  satisfy  the
       PERFORMANCE GUARANTEES.

1.8    PLANT
       PMD's  manufacturing  facilities  to be erected  and  operated by PMD/EPC
       CONTRACTOR at PMD's petrochemicals complex in the Kingdom of Saudi Arabia
       for

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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       the  operation/use  of the  PROCESS,  such plant shall have the  LICENSED
       CAPACITY, for production of PRODUCT.

1.9    EPC CONTRACTOR(S)
       The  contractor,  or  contractors  skilled in the design and  erection of
       chemical  plants  employed  by PMD and  responsible  for the  design  and
       construction the PLANT.

1.10   EPC CONTRACT
       The contract to be entered into between PMD and EPC CONTRACTOR(S) for the
       design and the construction of the PLANT.

1.11   EFFECTIVE DATE
       The EFFECTIVE DATE shall be the date identified in the first paragraph of
       this AGREEMENT.

1.12   FINANCIAL CLOSE DATE
       Means  the date on which  funds are  available  for  draw-down  under the
       relevant  financing  facility  relating  to the PLANT.  PMD shall  notify
       BALCHEM of the occurrence of the FINANCIAL CLOSE DATE.

1.13   IMPROVEMENTS
       IMPROVEMENTS being improvements and developments in the PROCESS developed
       or  initiated  by  BALCHEM,  PMD or any of their  AFFILIATES  during  the
       IMPROVEMENTS PERIOD.

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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1.14   IMPROVEMENTS PERIOD
       Means the period beginning with the Date of this AGREEMENT and continuing
       until  the date  ten (10)  years  from  the DATE OF  START-UP,  as may be
       extended upon the written mutual agreement of the Parties hereto.

1.15   KINGDOM
       Means the Kingdom of Saudi Arabia.

1.16   LICENSE FEE
       The total cash payment due BALCHEM under paragraphs 3.1.

1.17   LIQUIDATED DAMAGES
       Means any and every sum or sums expressed to be payable by BALCHEM to PMD
       on the failure of the PLANT to achieve the PERFORMANCE  GUARANTEES as set
       out in Appendix IV.

1.18   LICENSED CAPACITY
       LICENSED CAPACITY shall be the production of a minimum of twenty thousand
       (20,000) MTY when operating the PLANT over eight  thousand  (8,000) hours
       per  year  at  normal  operating  parameters,  adjusted  to  reflect  any
       additional capacity paid for by PMD under the provisions of Article 7.0.

1.19   MTY or MTPY
       Terms used interchangeably mean metric tons per year.

1.20   PARTY(IES)
       PMD and/or BALCHEM.

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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1.21   PERFORMANCE GUARANTEES
       The  PERFORMANCE  GUARANTEES  shall  mean the  guarantees  related to the
       performance of the PLANT and the PROCESS as set forth in Appendix IV.

1.22   PERFORMANCE TEST
       Means the test set forth in Appendix IV to  demonstrate  the  PERFORMANCE
       GUARANTEES of the PLANT.

1.23   PERSONNEL
       As to any PARTY,  means  permanent  and/or  contract  employees  of the ,
       including its officers, and the PARTY's directors.

1.24   PMC CONTRACTOR
       Means any project management contractor engaged by PMD in connection with
       the project.

1.25   REGION
       Means Saudi Arabia, Bahrain, Oman, Qatar, Iraq, Iran, Kuwait and UAE.

1.26   PROJECT DESIGN BASIS
       Means a compilation of relevant  technical  information  comprising basic
       engineering design data (BEDD),  with updates,  including other technical
       basis,  discussed  and  agreed  during  post bid  meetings,  and those in
       particular  described in Appendix VIII. This will be discussed and agreed
       at the  DESIGN  CONFERENCE  and will be  deemed  incorporated  into  this
       AGREEMENT.  This  AGREEMENT  shall govern in the event of a conflict with
       the PROJECT DESIGN BASIS.

1.27   PROCESS
       PROCESS shall mean a continuous  process  technology owned by BALCHEM for
       the  manufacture of the PRODUCT and its  intermediate,  trimethylammonium
       chloride.

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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1.28   PRODUCT
       Means  Aqueous  Choline  Chloride  (or  commensurate  amount of trimethyl
       ammonium chloride) obtained by the PROCESS and produced by the PLANT.

1.29   PRESTART-UP SERVICES
       The Services provided by BALCHEM to PMD necessary for personnel nominated
       by PMD to use the  TECHNICAL  INFORMATION  and  operate the PLANT and the
       PROCESS  such that the PLANT  will  achieve  its  LICENSED  CAPACITY,  as
       confirmed by PERFORMANCE TEST.

1.30   TERM
       Means the period during which this AGREEMENT will be in force  commencing
       from the EFFECTIVE DATE until the earlier of ten (10) years from the DATE
       OF START UP or 31 December 2020.

1.31   TECHNICAL INFORMATION
       Technical  knowledge,   technical  data,  drawings,  designs,  and  other
       information  necessary for the PROCESS or the PRODUCTS which BALCHEM owns
       or controls or has rights to on the EFFECTIVE DATE. TECHNICAL INFORMATION
       shall include the PDP, the maintenance manual and the quality manual.

1.32   INTERPRETATION
       In  this  agreement  the  following  words  and   expressions   have  the
       interpretation as follows,  except as otherwise expressly provided herein
       or unless the context requires otherwise.

1.32.1 Year,  month,  week and day mean a calendar  year,  a calendar  month,  a
       calendar  week  and  a  calendar  day,  respectively,  of  the  Gregorian
       Calendar.

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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1.32.2 Any  reference  in this  Agreement to the  Agreement or to any  provision
       thereof  shall  include any  amendment  and waiver  thereof as may become
       effective from time to time in accordance with this Agreement.

1.33.3 Any reference to any Article or Appendix in this Agreement shall refer to
       an Article or Appendix of this Agreement unless otherwise  provided.  All
       references  herein to an Article  number  (e.g.  5.12) shall be deemed to
       include  reference to all  subsequent  subparts of the same Article (e.g.
       5.12.1, 5.12.2, 5.12.3).

1.34.4 The words "include", "includes" and "including" are not limiting.

1.35.5 The headings  contained  in this  AGREEMENT  are included  solely for the
       convenience of the PARTIES.

1.36.6 This Agreement may be executed in any number of counterparts and all such
       counterparts  taken  together  shall be deemed to constitute  one and the
       same instrument.

1.37.7 Any conflict between the Articles and the Appendices shall be resolved in
       favor of the former.

1.38.8 The singular  shall include the plural and the plural the  singular,  and
       references  in either gender shall be deemed to include the other and the
       neuter, except where the context otherwise requires.

1.39.9 Words importing third parties include without  limitation,  corporations,
       companies, partnerships, associations and organizations.

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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             ARTICLE 2.0 - BALCHEM'S OBLIGATIONS AND GRANT OF RIGHTS
             -------------------------------------------------------

2.1    GRANT OF RIGHTS

2.1.1  Subject to the terms and  conditions of this  Agreement and provided that
       PMD makes the payments becoming due as per Article 3.1 hereof, which sums
       are not  disputed  by PMD,  BALCHEM  hereby  grants to PMD and PMD hereby
       accepts  the  exclusive  license  in  the  REGION  to use  the  TECHNICAL
       INFORMATION   and   IMPROVEMENTS   necessary   to  perform   the  design,
       engineering,  construction,  operation,  maintenance  and  repair  of the
       PROCESS  and the  PLANT  and for  performing  research  and/or  technical
       services in support of the  manufacture,  use and sale of PRODUCTS or the
       operation, maintenance, repair or expansion of the PLANT for the LICENSED
       CAPACITY, subject to the provisions of Article 7.0.

2.1.2  Provided  that PMD makes the  payments  becoming  due as per  Article 3.1
       hereof,  which sums are not disputed by PMD,  BALCHEM agrees to grant and
       hereby grants to PMD the exclusive right, without the right to sublicense
       to any third  party,  except as  provided  for in  Article  9, to use the
       TECHNICAL  INFORMATION and IMPROVEMENTS to design,  engineer,  construct,
       operate  maintain  and  repair  the PLANT and  undertake  the  PROCESS to
       produce  the  PRODUCT,  and BALCHEM  undertakes  not to assert any of its
       rights  (including  proprietary  rights and patent rights) to prevent the
       manufacture of PRODUCTS in the PLANT. BALCHEM shall not grant licenses or
       any  other  similar  rights  relating  to the  PRODUCT  or the  TECHNICAL
       INFORMATION  to any third party to construct or operate  similar  plants,
       manufacturing similar products in the REGION.

2.1.3  In addition to the grant of license under  Section  2.1.2 above,  BALCHEM
       grants  the  right  to PMD to use,  offer  for  sale,  market,  sell  and
       otherwise dispose of the PRODUCT on a world-wide basis,  except for North
       America, as set forth in Section 2.1.4.

2.1.4  With respect to the use, offer for sale, marketing or sale of the PRODUCT
       in  territories  of  Mexico,  Canada  and the  United  States of  America
       (collectively  "North  America")  PMD  hereby  appoints  BALCHEM  as  its
       exclusive distributor for the purchasing of the

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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       PRODUCT and the resale of the PRODUCT in North  America.  PMD agrees that
       BALCHEM will be the sole and exclusive  marketer and seller of PRODUCT in
       North America and shall not independently, or through third parties, use,
       offer for sale, market or sell the PRODUCT in North America,  or products
       derived from the PRODUCT in North America. Notwithstanding the above, PMD
       shall use  reasonable  endeavors to enforce this  covenant with any third
       party  distributor  selling the PRODUCT in North  America.  2.1.5 BALCHEM
       shall  give the first  right of refusal to PMD for PMD to become the sole
       and exclusive  marketer,  distributor and seller in the REGION of Aqueous
       Choline Chloride products produced by BALCHEM at any plant.

2.2    BALCHEM'S OBLIGATIONS

PDP WORK
--------

2.2.1  BALCHEM  shall  prepare  the PDP using  reasonable  skill and care and in
       accordance with the codes,  standards and other requirements specified in
       the  PROJECT   DESIGN  BASIS.   BALCHEM  will   designate  one  technical
       representative  who shall be available for PMD to contact for all matters
       relating to the  completion of the PDP and one  technical  representative
       who shall be available for PMD to contact for all matters relating to the
       PERFORMANCE GUARANTEES.  Said representative could be the same individual
       for  the  PDP  and  the  PERFORMANCE  GUARANTEES,  subject  to  continued
       employment with BALCHEM.

2.2.2  The PDP shall  include the  drawings,  specifications  and other  process
       design and basic  engineering  documents  as  specified  in Appendix  II.
       BALCHEM shall deliver the PDP in accordance with the submission  schedule
       set out in Appendix II (and shall provide PMD with brief one page summary
       updates not less than every four (4) weeks on the status and  progress of
       the PDP) in four (4)  paper  originals  and one (1)  electronic  (CD-ROM)
       original.  Final complete PDP  documentation  volumes,  in four (4) paper
       original sets and

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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       one (1) electronic (CD-ROM) original,  shall be submitted. The electronic
       format for electronic files will be as shown in Appendix II.

2.2.3  The date of  delivery  of the PDP shall be deemed to be the date on which
       BALCHEM  dispatches to PMD the PDP. If any required  documentation is not
       received by PMD within  seven (7) days of BALCHEM  proving to PMD that it
       has dispatched such documentation,  such documentation will be treated as
       lost or damaged and BALCHEM  shall  replace it free of charge  within ten
       (10) business days.

2.2.4  Unless the Parties agree otherwise in writing in relation to a particular
       document or particular documents, and without prejudice to Article 2.2.1,
       to the extent that BALCHEM delivers to PMD any PDP documentation ahead of
       the scheduled  submission in accordance  with Appendix II, marked as "For
       Information", it is agreed that such document is not final and is subject
       to  change  by  BALCHEM.  The  complete  phased  submission  of  the  PDP
       documentation  as per Appendix  II, shall be marked  "Issued for Design",
       and  may  include  any   revisions   to  the   submissions   marked  "For
       Information".  BALCHEM  shall  prepare  as  soon as  practicable  a final
       document  index listing the latest and final revision of each document in
       the PDP.

2.2.5  The PDP and all  associated  documents,  prepared  by  BALCHEM,  shall be
       copyright  protected in favor of BALCHEM and shall  remain the  exclusive
       property  of  BALCHEM  provided,  however,  that PMD may make  sufficient
       copies of such documents for its own internal use to the extent necessary
       to exercise the rights granted in Article 2 of this AGREEMENT.

2.2.6  At a mutually  agreed upon time, but in any event within twenty (20) days
       of the EFFECTIVE DATE, a design conference ("DESIGN CONFERENCE") shall be
       held  between  BALCHEM,   PMD  and  PMD's  nominees  (including  the  PMC
       CONTRACTOR and (if relevant) the EPC CONTRACTOR)) for the purposes:

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       (a)    set out in Appendix II; and

       (b)    without  limiting  subparagraph  (a), to agree the PROJECT  DESIGN
              BASIS (which will be deemed to be agreed once PMD and BALCHEM have
              approved the minutes of the DESIGN CONFERENCE).

2.2.7  The DESIGN  CONFERENCE shall be held in the offices of the PMC CONTRACTOR
       in the UK or such other  location to be mutually  agreed  upon,  and will
       last for three to five (3-5)  working  days,  unless  extended  by mutual
       agreement  between  the  PARTIES.  Each  PARTY  involved  in  the  DESIGN
       CONFERENCE  shall bear its own costs  associated  with the  attendance of
       personnel at the DESIGN CONFERENCE.

2.2.8  BALCHEM  shall  permit  one  engineer  to be  posted  at the  site of the
       development   of  the  PDP  for  three  months  to  act  as  PMD's  local
       co-ordinator  and to carry  out  various  activities  including  becoming
       accustomed with the P & IDs, PFDs and the technical process audit.

MEETINGS
--------

2.2.9  In addition to the DESIGN CONFERENCE,  BALCHEM will assign an engineer to
       attend the following meetings which are to be held at mutually convenient
       times  or,  failing  such  agreement,  at times to be  specified  by PMD.
       BALCHEM's cost associated with these meetings are included in the PDP FEE
       identified in Article 3.2:

              o      two  (2)  review   meetings  at  the  offices  of  the  PMC
                     CONTRACTOR  in the UK, each for maximum of five (5) working
                     days.
              o      two  (2)  review   meetings  at  the  offices  of  the  EPC
                     CONTRACTOR, each for maximum of three (3) days.

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TRAINING
--------

2.2.10 BALCHEM  shall  provide the training as specified  in, and in  accordance
       with, Appendix V.

ENGINEERING SERVICES
--------------------

2.2.11 BALCHEM  shall provide  critical  review  services,  to the extent deemed
       necessary  by  BALCHEM  (acting  as a  competent  licensor),  of  certain
       technical  documents  produced  by  PMD or its  contractors,  vendors  or
       others. This activity is included in the PDP Fee defined in Article 3.2.

2.2.12 BALCHEM  shall  provide  the  In-Kingdom  services as  specified,  and in
       accordance with, Appendix VII.

2.2.13 BALCHEM  shall  provide such  additional  engineering  and field  support
       services  (including  attending  meetings  at  the  offices  of  the  EPC
       CONTRACTOR  and such  assistance  as may be necessary  during the testing
       process and in connection  with certifying  mechanical  completion of the
       PLANT) as may be reasonably  requested in relation to technology  issues.
       PMD shall pay BALCHEM for such services in accordance with Article 3.4.

PERFORMANCE TEST
----------------

2.2.14 BALCHEM  guarantees  that on a  PERFORMANCE  TEST as  provided  under the
       conditions  set  forth  in  Appendix  IV,  the  PLANT  will  satisfy  the
       PERFORMANCE GUARANTEES.

2.2.15 In the event that the PERFORMANCE GUARANTEES are not fulfilled during the
       third PERFORMANCE  TEST, and such failure is for reasons  attributable to
       BALCHEM,  BALCHEM  will  pay PMD  the  LIQUIDATED  DAMAGES  as set out in
       Appendix IV.

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                           ARTICLE 3.0 - CONSIDERATION
                           ---------------------------

3.1    LICENSE FEE

       In consideration of the rights and licenses granted to PMD, PMD shall pay
       to  BALCHEM,  the  total  LICENSE  FEE of one  million  and four  hundred
       thousand United States Dollars (US$ 1,400,000). The amounts are to become
       due and payable  thirty  (30)  calendar  days after  receipt by PMD of an
       invoice with  appropriate  supporting  documents in  accordance  with the
       following schedule:

3.1.1  Fifteen  percent  (15%) of the  LICENSE  FEE  being two  hundred  and ten
       thousand  United States  Dollars (US$  210,000).  BALCHEM shall submit an
       invoice for such amount on the earlier of the FINANCIAL  CLOSE DATE or 31
       December 2006.

3.1.2  Thirty  five  percent  (35%) of the  LICENSE  FEE being four  hundred and
       ninety thousand United States Dollars (US$490,000).  BALCHEM shall submit
       an invoice for such amount after  mechanical  completion  of the PLANT as
       defined in the EPC CONTRACT.

3.1.3  Fifty  percent  (50%) of the LICENSE FEE,  being seven  hundred  thousand
       United States Dollars  (US$700,000).  BALCHEM shall submit an invoice for
       such amount after the PERFORMANCE TESTS have been successfully  completed
       (or waived).

3.2    PDP FEE

       As  consideration  for the  preparation  and  delivery  of the PDP  under
       Article 2, including  attending the meetings and critical review services
       as  described  in Article  2, PMD shall pay to  BALCHEM  the total sum of
       seven hundred ninety  thousand  United States Dollars  (US$790,000).  The
       amounts are to be due and payable thirty (30) calendar days after receipt
       by PMD of an invoice with appropriate  supporting documents in accordance
       with the following schedule:

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3.2.1  Forty  percent  (40%) being three  hundred  and sixteen  thousand  United
       States Dollars  (US$316,000)  as a down payment.  BALCHEM shall submit an
       invoice for such amount after the EFFECTIVE DATE.

3.2.2  Twenty  percent (20%) being one hundred and fifty eight  thousand  United
       States  Dollars  (US$158,000).  BALCHEM  shall submit an invoice for such
       amount upon the submission of the Phase 3 documentation  as identified in
       Appendix II.

3.2.3  Twenty percent (20%) being one hundred fifty-eight thousand United States
       Dollars  (US$158,000).  BALCHEM  shall  submit an invoice for such amount
       upon the submission of the Phase IV final  documentation as identified in
       Appendix II.

3.2.4  Twenty  percent (20%) being one hundred and fifty eight  thousand  United
       States  Dollars  ($158,000).  BALCHEM  shall  submit an invoice  for such
       amount upon submission of the Phase V final  documentation  as identified
       in Appendix II.

3.3    TRAINING FEE

       As consideration  for providing  training as described in Appendix V, PMD
       shall pay to BALCHEM  the sum of fifty  thousand  United  States  Dollars
       (US$50,000).  BALCHEM may submit an invoice for such amount within thirty
       (30) days of commencement of the training services  described in Appendix
       V.

3.4    ENGINEERING AND FIELD SUPPORT RATES

3.4.1  As  compensation  to BALCHEM for any  engineering  support and assistance
       provided from BALCHEM's  office in the USA,  pursuant to Article  2.2.13,
       PMD shall pay to  BALCHEM a uniform  hourly  rate of one  hundred  United
       States Dollars (US$ 100) per  man-hour(provided  that BALCHEM  submits to
       PMD invoices together with timesheets and a brief explanation of the work
       performed).  PMD shall  effect  payment  within  thirty  (30) days of the
       receipt by PMD of BALCHEM's invoices, complete in all respect.

3.4.2  As  compensation  to BALCHEM for any  engineering  support and assistance
       provided outside BALCHEM's office in the USA, pursuant to Article 2.2.13,
       PMD shall  pay to  BALCHEM  the  uniform  per diem rate of Eight  hundred
       United  States  Dollars  (US$  800).

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       Additionally,  PMD will  reimburse  reasonable  expenses  towards  travel
       (business class air for  intercontinental  flights),  accommodation,  and
       living expenses (provided that BALCHEM submits invoices,  time sheets and
       brief  explanations  of work performed and receipts of actual expenses to
       PMD).  PMD shall effect payment within thirty (30) days of the receipt by
       PMD of BALCHEM's invoices, complete in all respect.

3.5    PAYMENTS

       All payments to BALCHEM  provided for in this AGREEMENT  shall be made in
       U.S. Dollars.

3.6    TAXES & DUTIES

       The payments  required to be made under this  Agreement in respect of PDP
       FEE,  LICENSE FEE and outside Kingdom  services shall be paid free of all
       taxes and deductions  whatsoever  imposed by or arising as per applicable
       laws in the KINGDOM.  However,  BALCHEM shall bear taxes as applicable on
       invoices  towards the  services  rendered in the Kingdom of Saudi  Arabia
       pursuant to 3.4.2.

3.7    CHANGES TO PDP

       PMD may specify any PMD preferences to be taken into consideration in the
       preparation of the PDP. Such  preferences  shall be included at BALCHEM's
       discretion.  Without prejudice to Article 2.2.6(b),  changes initiated by
       PMD to the PDP or the  PROJECT  DESIGN  BASIS  (subsequent  to the DESIGN
       CONFERENCE)  will be incorporated  only if the design proposed by BALCHEM
       is unsafe or contrary to the PROJECT  DESIGN BASIS.  Such changes will be
       made at no cost to PMD. Any other change to the PDP or the PROJECT DESIGN
       BASIS proposed by PMD if required to be incorporated will be incorporated
       by BALCHEM  and the  additional  actual  engineering  costs  incurred  by
       BALCHEM will be reimbursed by PMD.

                     ARTICLE 4.0 - EXCHANGE OF IMPROVEMENTS
                     --------------------------------------

4.1    For the duration of the IMPROVEMENTS  PERIOD,  BALCHEM and PMD shall meet
       annually at BALCHEM'S  offices in the USA to exchange  information  about
       the

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       IMPROVEMENTS  acquired  and/or  developed  by each  during the  preceding
       period of time,  if any. Each PARTY shall inform the other PARTY which of
       the IMPROVEMENTS of the other PARTY it intends to use. PMD shall, without
       additional  payment,  be entitled to use  IMPROVEMENTS  of BALCHEM in the
       PLANT, and similarly BALCHEM shall,  without payment,  be entitled to use
       IMPROVEMENTS of PMD in its plants.

4.2    BALCHEM  shall not be entitled to use  IMPROVEMENTS  developed by PMD for
       any  other  purpose  other  than  as  referred  to in  Article  4.1,  and
       specifically  shall not be  entitled  to  sub-license  such  IMPROVEMENTS
       developed  by  PMD  to  third  parties,  without  first  entering  into a
       co-licensing  agreement  with PMD.  The  PARTIES  agree to consult and to
       negotiate  in good faith with a view to agreeing  the  specific  terms of
       such an  arrangement  and  acknowledge  that  PMD  shall be  entitled  to
       reasonably share in the benefit  (including any monetary  benefit) of any
       such arrangement.

                              ARTICLE 5.0 - SECRECY
                              ---------------------

5.1    For a period of fifteen (15) years from the EFFECTIVE  DATE,  each of PMD
       and BALCHEM hereby undertake to use their best efforts to keep secret, to
       withhold from third parties (except as authorized herein) and to use only
       for purposes connected with this AGREEMENT, all TECHNICAL INFORMATION and
       IMPROVEMENTS  furnished  or  disclosed  by the other  PARTY  directly  or
       indirectly,  under this AGREEMENT,  except such TECHNICAL  INFORMATION or
       IMPROVEMENTS, as:

       (a) can be proved by the receiving PARTY to have been of public knowledge
       at the date of disclosure thereof by the disclosing PARTY; or

       (b) can be proved by the receiving  PARTY to have been in its  possession
       prior to disclosure by the disclosing PARTY,  provided that the receiving
       PARTY  has  not

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       received  such  TECHNICAL   INFORMATION  or   IMPROVEMENTS   directly  or
       indirectly from the disclosing PARTY; or

       (c) shall have become of public  knowledge after such disclosure  through
       no default of the receiving PARTY; or

       (d) shall have become legally  available to the receiving  PARTY from any
       third party without  restriction on disclosure or use, provided that such
       third party has not received such TECHNICAL INFORMATION or IMPROVEMENT(s)
       directly or indirectly from the disclosing PARTY under binder of secrecy;

       (e)  is  developed  by  the  receiving  PARTY  independent  of  TECHNICAL
       INFORMATION or IMPROVEMENTS  received from the disclosing  PARTY pursuant
       to this AGREEMENT, or the EPC CONTRACT, or

       (f) required to be disclosed by law.

       For the  purpose of this  paragraph,  disclosures  made to the  receiving
       PARTY under this  AGREEMENT  which are  specific,  e.g. as to  equipment,
       PRODUCT, operating conditions, specific materials used, etc. shall not be
       deemed to be within the  foregoing  exceptions  merely  because  they are
       embraced by general disclosures in the public domain or in the possession
       of the receiving  PARTY.  In addition,  any combination of features shall
       not be  deemed to be  within  the  foregoing  exceptions  merely  because
       individual  features are in the public domain or in the possession of the
       receiving  PARTY,  but  shall  be  deemed  to  be  within  the  foregoing
       exceptions only if the combination  itself and its principle of operation
       are in the public domain or in the possession of the receiving PARTY.

5.2    To the extent legally permissible,  the receiving PARTY shall ensure that
       its employees who have received TECHNICAL INFORMATION and/or IMPROVEMENTS

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       understand  their  obligations to it to keep secret and  confidential all
       such TECHNICAL  INFORMATION and  IMPROVEMENTS  during the period of their
       employment by the receiving PARTY.

5.3    BALCHEM shall not make an  application  for, or file, any patent or other
       intellectual  property right arising out of any IMPROVEMENT  developed by
       PMD. PMD shall not make an application  for, or file, any patent or other
       intellectual  property right arising out of any IMPROVEMENT  developed by
       BALCHEM.

5.4    Irrespective of the provisions set forth in Article 5.1 above,  PMD shall
       have the right to disclose TECHNICAL  INFORMATION and/or  IMPROVEMENTS to
       its financiers (including their technical advisors),  the PMC CONTRACTOR,
       EPC CONTRACTOR,  its other  contractors or suppliers or AFFILIATES to the
       extent   necessary  for  rendering   services  for  PMD  in  the  design,
       engineering,   construction,   operation,   repair,   maintenance  and/or
       expansion of the PLANT,  provided  that PMD has first  obtained  from the
       recipients thereof signed secrecy undertakings. Such secrecy undertakings
       shall be  substantially  in the form attached  hereto as Appendix I (with
       such  amendments  as BALCHEM may approve  acting  reasonably)  or in such
       other form as may be acceptable to BALCHEM (acting reasonably).

5.5    Notwithstanding  any other provision in this AGREEMENT,  PMD may disclose
       TECHNICAL INFORMATION of BALCHEM to its AFFILIATES,  and to third parties
       for the  limited  purposes  of  comparing  operating  data for the PLANT,
       developing  or  modifying  operating  methods  or  protocols,  developing
       additives  for  the  PLANT,  or  for  performing  services  or  supplying
       equipment  for the  PLANT or for  expansions  or  modifications  thereof,
       provided that PMD has first obtained from the  recipients  thereof signed
       secrecy undertakings. Such secrecy undertakings shall be substantially in
       the form attached  hereto as Appendix I (with such  amendments as BALCHEM
       may approve acting reasonably) or in such other form as may be acceptable
       to BALCHEM (acting reasonably).

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5.6    Furthermore,  PMD and BALCHEM may disclose  TECHNICAL  INFORMATION and/or
       IMPROVEMENTS to governments,  governmental agencies, courts and tribunals
       and  subdivisions  thereof to the minimum extent  required.  However,  if
       required  to  disclose to any  governmental  entity or agency,  the PARTY
       required  to  disclose  shall  immediately  notify  the PARTY who was the
       disclosing PARTY of such TECHNICAL  INFORMATION of such  requirement.  In
       addition  the  disclosing  Party  shall use every  effort to protect  the
       TECHNICAL  INFORMATION in the same manner and to the same extent provided
       herein to the extent reasonably possible.

              ARTICLE 6.0 -WARRANTIES, INDEMNITIES AND LIABILITIES
              ----------------------------------------------------

6.1.   BALCHEM  represents  and  warrants  that it has  the  right  to  disclose
       TECHNICAL  INFORMATION  to PMD and to  grant to PMD the  license  granted
       herein.

6.2    BALCHEM  hereby  confirms that it has the right to disclose the TECHNICAL
       INFORMATION  to PMD in accordance  with the terms hereof and that the use
       of any  portion  of the  TECHNICAL  INFORMATION  in  accordance  with the
       license  granted  hereunder  and to the  best of its  knowledge  does not
       violate the  proprietary  or  intellectual  property  rights of any third
       party.

6.3    BALCHEM hereby declares that it is not aware of any patent right or other
       intellectual property of a third party, which would be infringed by PMD's
       use of  TECHNICAL  INFORMATION  in the  manufacture  of  PRODUCTS  by the
       PROCESS in the PLANT or the design, engineering, construction, operation,
       repair or  maintenance of the PLANT or the use or sale of PRODUCTS in any
       country in the world and  BALCHEM  agrees to inform PMD  promptly  of any
       patent or other third party intellectual property right becoming known to
       BALCHEM  which could  suggest  infringement  by use of the PROCESS or any
       IMPROVEMENT by PMD in the PLANT or the use or sale of PRODUCTS hereunder.

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                                                    PMD CHOLINE CHLORIDE PROJECT
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6.4.1  If any  claim,  suit or  action  for  infringement  of  patents  or other
       intellectual  property rights is brought against PMD arising out of PMD's
       use of the TECHNICAL INFORMATION to design, construct,  operate, maintain
       and repair the PLANT, to manufacture the PRODUCTS,  or the use or sale of
       the PRODUCTS in accordance with this AGREEMENT,  BALCHEM shall during the
       TERM of this Agreement,

              (a) upon receipt of PMD's written request in writing  undertake at
              BALCHEM'S  own  expense  the  defence of any such  claim,  suit or
              action; and

              (b)  regardless of whether PMD has requested  BALCHEM to undertake
              the  defence  of any such  claim,  suit or action,  indemnify  PMD
              against, and otherwise hold PMD free and harmless from, damages or
              other such sums which may be assessed or may become payable by PMD
              under, or any costs (including reasonable legal costs, the cost of
              modifying  the PLANT and the cost of modifying the manner in which
              the PLANT or PROCESS is operated)  incurred by PMD arising out of,
              any  settlement  of any such  claim,  suit or  action or any final
              decree or judgment in any suit or action.

6.4.2  Where  BALCHEM has been  requested to  undertake  the defense of any such
       claim,  suit or action,  BALCHEM  shall have sole charge and direction of
       the defense of any such suit or action and of all  negotiations  for such
       settlement,   but  PMD  shall  be  obligated  to  render  all  reasonable
       assistance  which may be required by BALCHEM  (provided  that  associated
       costs to PMD shall be reimbursed by BALCHEM).  PMD, at its own cost,  may
       retain  counsel of its own selection to advise and consult with BALCHEM'S
       counsel.

6.4.3  Neither BALCHEM nor PMD may settle any suit or action without the consent
       of the other PARTY if by such  settlement the other PARTY is obligated to
       make any  monetary  judgment,  to part with any  property or any interest
       therein,  to assume any  obligation  (including  any obligation on PMD to
       modify the PLANT or the manner in which the

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       PLANT  is  operated  or  the  PROCESS  is  used),  to be  subject  to any
       injunction,  or to grant any  license  or other  rights  under its patent
       rights.  In no event shall any PARTY,  in reaching or attempting to reach
       such settlement, make any statements, concessions or admissions as a part
       thereof which may be adverse to the other PARTY'S interests without first
       obtaining the other PARTY'S written consent.

6.5    The  total  cumulative  liability  of  BALCHEM  to PMD  with  respect  to
       performance  guarantees,  in accordance with Appendix 4, and with respect
       to patent indemnification as provided in Article 6.4, and with respect to
       any other  obligation  under  this  AGREEMENT  shall not  exceed  seventy
       percent (70%) of the LICENSE FEE.

6.6    PMD shall indemnify,  defend and hold BALCHEM,  its directors,  officers,
       employees, agents, and Affiliates harmless from and against all claims by
       third parties for death,  disease or personal  injury  resulting  from or
       arising out of the manufacture, use and sale of the PRODUCT by PMD or any
       PMD AFFILIATE;  provided, however, that PMD's indemnification obligations
       under this  Article  6.6 shall not apply (i) to the extent  that any such
       claim   arises  out  of  any  breach  by  BALCHEM  of  any  of  BALCHEM's
       representations,  warranties or covenants hereunder, or (ii) to any claim
       arising out of BALCHEM's sole negligence.

6.7    IN NO EVENT SHALL  BALCHEM BE LIABLE  FOR,  AND PMD SHALL  INDEMNIFY  AND
       DEFEND BALCHEM AGAINST, ANY ENVIRONMENTAL,  TOXIC WASTE,  HAZARDOUS WASTE
       OR POLLUTION  LIABILITY,  OR, EXCEPT TO THE EXTENT  COVERED BY LIQUIDATED
       DAMAGES OR THE INDEMNITY UNDER ARTICLE 6.4, FOR ANY SPECIAL,  INCIDENTAL,
       INDIRECT OR  CONSEQUENTIAL  DAMAGE OF ANY NATURE SUCH AS, BUT NOT LIMITED
       TO, LOSS OF PRODUCTION,  UNAVAILABILITY OF THE PLANT, LOSS OF ANTICIPATED
       PROFITS OR INTEREST  ON  INVESTMENT,  LOSS OF USE OF

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       REVENUE,  INCREASED  EXPENSE OF OPERATION  AND WHETHER ANY SUCH CLAIMS OR
       DAMAGES ARE BASED ON CONTRACT, TORT OR OTHERWISE.

                  ARTICLE 7.0 - EXPANSION OF LICENSED CAPACITY
                  --------------------------------------------

7.1    In the event that PMD,  during the TERM of this  AGREEMENT,  expands  the
       capacity  of the  PLANT,  such that the  expanded  capacity  of the PLANT
       exceeds the LICENSED CAPACITY (plus twenty-five  percent (25%), PMD shall
       be required to make a one off payment in excess of the LICENSE FEE in the
       amount of seventy-five United States Dollars (US$75.00),  for each metric
       ton of  capacity  in the PLANT in excess of one  hundred  and twenty five
       percent (125%) of the LICENSED  CAPACITY which arises out of the relevant
       expansion  and  shall  thereby  acquire  a fully  paid  license  for such
       additional annual design capacity.  PMD shall pay such additional license
       fee within thirty (30) days of receipt of BALCHEM's invoice therefore, no
       later than  thirty  (30) days after said  additional  design  capacity is
       commissioned.

7.2    PMD agrees  that for so long as it  continues  to  practice  the  PROCESS
       during the term of this  AGREEMENT,  it will keep  detailed  and accurate
       records of the  character  and amount of charge and  PRODUCT  used and/or
       obtained as the case may be,  submitting  such data to BALCHEM  annually.
       PMD  further  agrees that  BALCHEM,  acting  through an outside  publicly
       recognized  auditing  firm  approved  by PMD,  which  approval  shall not
       unreasonably be withheld,  may at reasonable  intervals,  upon reasonable
       advanced  notice,  and during normal business hours make such examination
       of PMD's  operation and  production  records and may make  abstracts from
       such  records and accounts as may be necessary to verify the license fees
       paid and payable  under this  AGREEMENT.  Such  auditor  shall  provide a
       statement to BALCHEM after such audit, which will include as a minimum if
       the PLANT exceeds the LICENSED CAPACITY, the actual production of PRODUCT
       during the period in question.

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                                                    PMD CHOLINE CHLORIDE PROJECT
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        ARTICLE 8.0 - VISIT TO PLANT; DESIGN AND OPERATING DATA; FURTHER
        ----------------------------------------------------------------
                            EXCHANGE OF IMPROVEMENTS
                            ------------------------

8.1    Provided that BALCHEM  complies with the reasonable  requests of PMD, PMD
       agrees that from time to time during the TERM of this AGREEMENT,  BALCHEM
       personnel  will be permitted  to visit the PLANT to review the  operation
       and take operating data and samples, which information shall be used only
       in accordance with Article 4, for improvement.

8.2    Subject to PMD's  approval,  other  licensees  of BALCHEM,  or  potential
       licensees of the PROCESS,  may also visit, the PLANT,  number of visitors
       limited  to  maximum  of five  (5).  Request  for  such  visits  shall be
       submitted  by BALCHEM to PMD at least  thirty (30) days in  advance,  and
       approval shall not be unduly withheld.

                           ARTICLE 9.0 - MISCELLANEOUS

9.1    Transfer and Assignment

       Except to an  AFFILIATE  who will  assume  all  rights  and  obligations,
       neither of the PARTIES shall transfer or assign their  respective  rights
       and  obligations  under this AGREEMENT to third parties without the prior
       written  permission  of the other  PARTY,  except  however,  that PMD may
       assign its rights or transfer its  obligations  under this  Agreement to:
       (1) any company  formed for the purpose of undertaking  the project;  (2)
       the successor to the entire  assets and business to which this  Agreement
       relates; (3) PMD shall be freely entitled, to assign, charge or otherwise
       encumber its interests under this Agreement or any right or benefit under
       this Agreement in favour of any bank,  financial  institution or an agent
       or  trustee  of the  same  providing  financing  in  connection  with the
       project.

9.2    Entire Agreement

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       The PARTIES declare that this AGREEMENT  constitutes the entire agreement
       between  them  relating  to the  PLANT,  TECHNICAL  INFORMATION  and  the
       PROCESS. There are no understandings,  statements or guarantees except as
       herein  expressly set forth in respect of this  AGREEMENT.  Neither PARTY
       shall claim any  representations  to the other PARTY or to third  parties
       which  are  not  expressly  stated  herein.  No  change,   alteration  or
       modification  hereof  shall be  effective  unless it is made in a written
       document signed by both PARTIES.

9.3    Termination

       This  agreement  shall expire at end of TERM, as defined in Article 1.34.
       However,  PMD shall be  entitled  to use  TECHNICAL  INFORMATION  and the
       PROCESS in the PLANT and  BALCHEM  and PMD shall  remain  entitled to use
       IMPROVEMENTS  and  information  exchanged  pursuant to Article 8.0,  even
       after  the  expiration  of this  AGREEMENT  without  making  any  payment
       thereafter, except for the expansion of LICENSED CAPACITY. The expiration
       of this AGREEMENT shall not relieve BALCHEM or PMD from their obligations
       pursuant to Article 5.0.

9.3.1  If either Party to this Agreement ("the  Defaulting  Party") shall become
       bankrupt  or  insolvent,  or has a  receiving  order made  against it, or
       compounds  with its creditors,  or, being a corporation,  commences to be
       wound  up  (such  winding  up not  being  voluntary  for the  purpose  of
       reconstruction  or  amalgamation  whilst  solvent),  or  carries  on  its
       business  under  an  administrative  receiver  for  the  benefit  of  its
       creditors or any of them, or has an administrator  appointed,  or has any
       distress levied on its goods, or if events or acts shall occur or be done
       in relation to or by PMD to those described in this Article 9.3, then the
       other Party ("the Innocent Party") shall be entitled without prejudice to
       any other of its rights or  remedies,  to  terminate  this  Agreement  by
       notice  in  writing  to the  Defaulting  Party  or to the  administrative
       receiver, liquidator,  administrator or other competent person or body in
       whom this  Agreement may become  vested,  or to give such

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                                    Page 25
<PAGE>

       administrative receiver,  liquidator,  administrator,  person or body the
       option of carrying out this Agreement.

9.3.2  Unless the Parties  expressly agree or have expressly agreed otherwise in
       writing,  this  Agreement  may be  terminated  only  in  accordance  with
       Articles 9.5 or by the mutual written consent of both Parties.

9.3.3  PMD may, at any time prior to the FINANCIAL  CLOSE DATE,  and at its sole
       convenience,  terminate  this  Agreement  by  giving  written  notice  to
       BALCHEM.  If PMD terminates this Agreement under this clause:

       (a)    BALCHEM shall  immediately cease the performance of all work under
              the Agreement; and

       (b)    PMD shall, within ninety (90) days of the date of termination, pay
              BALCHEM any amounts  which have accrued for payment in  accordance
              with this Agreement by PMD but which have not been paid.

9.3.4  BALCHEM  acknowledges and agrees that BALCHEM 's sole remedy against PMD,
       and the  limit  of  PMD's  liability  to  BALCHEM,  arising  out of or in
       connection  with the  termination  of this  Agreement  under clause 9.3.3
       (including  for  any  work  carried  out by  BALCHEM  prior  to any  such
       termination), will be for the payment of the amount referred to in clause
       9.3.3(b).

9.3.5  Provided  PMD  shall  have  fulfilled  all of  its  material  duties  and
       obligations hereunder including the payment of all sums specified in this
       Agreement,  and provided  BALCHEM has received  such sums,  the following
       shall apply:

       (a)    the grant of rights in Articles 2 shall survive, in perpetuity and
              at no further cost, expiration of this Agreement; and

       (b)    BALCHEM  's  obligation  to  not  assert  or to  arrange  for  the
              non-assertion of any patents included in the TECHNICAL INFORMATION
              by  reason  of  PMD's  use

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              of  said  PROCESS,  Technology  and  Improvements,  to the  extent
              BALCHEM has agreed hereunder,  shall survive, in perpetuity and at
              no further cost, expiration of this Agreement.

9.3.6  Termination  of this  Agreement for whatever  cause by either Party shall
       not affect  any  rights  accrued  or  obligations  incurred  prior to the
       effective date of such termination.

9.4    Default

       If either PARTY commits a material  breach of this  AGREEMENT,  including
       its  obligation to make  payments as provided in Article 3.1 hereof,  the
       non-defaulting  PARTY may give  written  notice to the  defaulting  PARTY
       calling  attention to such default and, in the event the defaulting PARTY
       shall not correct such default  within sixty (60) days after such notice,
       or if such default is one which  reasonably  cannot be  corrected  within
       such time, is not  diligently  pursuing  correction of such default,  the
       non-defaulting  PARTY shall have the right to  terminate  this  AGREEMENT
       forthwith.  Termination  of this  AGREEMENT  by a PARTY  shall be without
       prejudice  to that  PARTY of any other  remedy it may have.  Failure of a
       PARTY to exercise  any right to  terminate  this  AGREEMENT  shall not be
       deemed a waiver of such right or of the right so to do for persistence in
       default of a continuing nature, or for any subsequent  default, or of any
       other  rights  that PARTY may have  against  the other PARTY by reason of
       such default. Termination of this AGREEMENT shall not relieve the PARTIES
       of any obligation or liability  arising under this AGREEMENT prior to the
       EFFECTIVE  DATE of such  termination,  including  the  payments by PMD in
       accordance with Article 3.1 and the PARTIES secrecy obligations  pursuant
       to Article 5.0.

9.5    Force Majeure

       Neither PARTY shall be considered to be in default in the  performance of
       their obligations  hereunder (except for the payment of monies),  if such
       performance is prevented or delayed because of earthquakes, disturbances,
       sabotage, war (whether

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                                                    PMD CHOLINE CHLORIDE PROJECT
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       declared  or  undeclared),  invasion,  armed  conflict  or act of foreign
       enemy,  rebellion,  revolution,  insurrection,  civil  war,  riot,  civil
       commotion,  blockage,  embargo,  radioactive  contamination  or  ionizing
       radiation, save to the extent that such delay or failure to perform could
       have been foreseen, prevented, overcome or remedied (in whole or in part)
       by the  affected  PARTY  ("FORCE  MAJEURE").  The  PARTY  prevented  from
       performing  its  obligations  or duties because of FORCE MAJEURE shall be
       required to notify the other Party hereto within fifteen (15) days of the
       occurrence and particulars of such FORCE MAJEURE and shall be required to
       provide the other PARTY, from time to time, with its best estimate of the
       duration  of such  FORCE  MAJEURE  and  with  notice  of the  termination
       thereof.  The Party so affected shall use reasonable  efforts to avoid or
       remove such causes of nonperformance. Upon the expiration of the event of
       FORCE  MAJEURE  the  obligation  to  perform  any  previously   suspended
       obligation or duty shall promptly recommence. In the event that the FORCE
       MAJEURE continues for a period of more than six (6) months,  either PARTY
       may terminate this AGREEMENT by notifying the other PARTY in writing.

9.6    Interpretation of Provisions

       All parts and contents of this  AGREEMENT  consist of a sole  undertaking
       and any part or parts  hereof  shall not be  treated or  construed  as an
       independent  undertaking  or  agreement.  Should the same word  appear in
       several parts of this AGREEMENT and should thereby any ambiguity arise in
       the  interpretation  thereof,  the word should be construed in accordance
       with the context in which the word appears.

9.7    In the event  that any  stipulation  or  stipulations  of this  AGREEMENT
       becomes void,  this shall not affect the validity of this  AGREEMENT as a
       whole.  BALCHEM and PMD shall  together make  arrangements  to replace or
       amend such incorporative stipulations in order to give effect to the real
       intention of the PARTIES.

9.8    Applicable Law

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       This AGREEMENT  shall be governed by and  interpreted in accordance  with
       the laws of England, excluding its conflict of laws provisions.

9.9    Dispute Resolution

9.9.1  Any dispute that may arise under or in relation to this  AGREEMENT  shall
       be  determined  by  arbitration,  unless  agreement  in writing  has been
       reached  between the PARTIES to the dispute  sixty (60) days after formal
       written notice of dispute or disagreement  has been given by one PARTY to
       the other  PARTIES to the dispute.  The PARTIES agree that service of any
       notices in reference to such  arbitration at their  addresses as given in
       this AGREEMENT shall be valid and sufficient.

9.9.2  The arbitration shall be conducted  according to the Rules of Arbitration
       of the International Chamber of Commerce (the "ICC Rules"), in London, or
       another mutually agreeable location.  In case of conflict between the ICC
       Rules and the  provisions  of this clause,  the  provisions  hereof shall
       prevail.

9.9.3  The arbitral tribunal shall consist of three  arbitrators.  Each PARTY to
       the dispute shall appoint one arbitrator. If a PARTY fails to appoint its
       arbitrator  within a period of twenty (20) days after receiving notice of
       the arbitration,  then such arbitrator shall be appointed pursuant to the
       procedures of the ICC Rules. If there are fewer than three PARTIES to the
       dispute,  the  third  arbitrator  shall  be  appointed  pursuant  to  the
       procedures of the ICC Rules.

9.9.4  Arbitrators  shall be persons with experience of the  implementation  and
       interpretation  of  contracts   relating  to  the  design,   engineering,
       construction,  operation and  maintenance of projects of a similar nature
       to the project.  No arbitrator  shall be a present or former  employee or
       agent  of, or  consultant  or  counsel  to,  any  PARTY or any  affiliate
       thereof.

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9.9.5  Any decision  rendered by the arbitral  tribunal,  including the arbitral
       award  shall be  treated  in secrecy  by the  arbitral  tribunal  and the
       PARTIES.

9.9.6  Each  PARTY  shall  bear  its  costs  and  expenses   incurred  with  the
       arbitration,  including  solicitors'  fees.  The PARTIES shall also share
       equally the arbitrators' fees and expenses  provided,  however,  that the
       arbitrators may provide for alternative  allocation of such expenses to a
       PARTY.

9.9.7  If any dispute:

       9.9.7.1 raises issues which are  substantially  the same as, or connected
              with,  or touch upon,  or concern  issues raised in any dispute or
              difference  arising out of or in connection  with the EPC Contract
              or the  tri-partite  agreement  referred  to in  Article  9.11  (a
              "Related Project Dispute"); or

       9.9.7.2 arises out of, or touches  upon,  or concerns  substantially  the
              same facts as are the subject of a Related Project Dispute,

       then  notwithstanding  that arbitrators may have been agreed or appointed
       under this  AGREEMENT  (but subject to clause  9.8),  PMD may, by written
       notice  to  BALCHEM,  the EPC  CONTRACTOR  and the  arbitrators  who have
       already been agreed or appointed hereunder,  require the reference of any
       such  dispute to be  referred  to and  finally  settled  by the  arbitral
       tribunal  appointed or to be appointed  under the EPC Contract in respect
       of any such related dispute ("Joint Tribunal").

9.9.8  The Joint Tribunal  shall become the arbitral  tribunal in respect of any
       dispute or difference between the PARTIES.  The PARTIES shall be bound by
       any  directions or orders made by the Joint  Tribunal as to their joinder
       in any arbitration  proceedings  under the EPC Contract and shall also be
       bound by any procedural  directions and any subsequent  award made by the
       Joint Tribunal.

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                                                    PMD CHOLINE CHLORIDE PROJECT
                                                 COMPREHENSIVE LICENSE AGREEMENT
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9.9.9  Article 9.8 shall not apply in respect of any dispute  after a hearing on
       the merits has commenced in any arbitration under this Article 9.

9.9.10 In the event of the revocation of the authority of  arbitrators  who have
       already  been agreed or appointed  under this  AGREEMENT by reason of the
       notice  given  by PMD  under  Article  9.7,  the  cost  of the  cancelled
       arbitration  (including the arbitrators' fees) shall be dealt with by the
       Joint Tribunal as costs in that arbitration.  Pending such determination,
       the fees of the  arbitrators  whose  authority  has been revoked shall be
       paid in equal portions by the PARTIES.

9.9.11 It is not intended  that this clause  shall  operate so as to deprive any
       PARTY to a dispute of anything which, apart from this clause,  would be a
       valid claim or defence.  Accordingly,  all claims and defences which were
       originally  made in the  cancelled  arbitration  shall be deemed  for all
       purposes to have been brought when made and not be affected in any way by
       the revocation of the authority of the arbitrators or the cancellation of
       the arbitration  pursuant to Articles 9.7 and 9.9 so that the position of
       either PARTY to the dispute shall not thereby be prejudiced  with respect
       to any rule of law,  statute,  regulation or contractual  provision which
       imposes a time limit on the  commencement  of proceedings or the right to
       any remedy.

9.9.12 The Joint Tribunal in determining any dispute shall consider all evidence
       which it may think  pertinent to that dispute which is filed or called by
       a PARTY to the arbitration proceedings.

9.9.13 Notwithstanding any reference to arbitration  hereunder the PARTIES shall
       continue to perform their  respective  obligations  under this  AGREEMENT
       unless the PARTIES otherwise agree.

9.10   Export of Technical Data

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       PMD understands that the TECHNICAL  INFORMATION and IMPROVEMENTS provided
       by BALCHEM under this  AGREEMENT may only be used in connection  with the
       license  granted  under  this  AGREEMENT  and PMD may not export any such
       TECHNICAL INFORMATION, IMPROVEMENTS or the PLANT itself without the prior
       written consent of BALCHEM.  PMD confirms that the TECHNICAL  INFORMATION
       to be provided by BALCHEM  and the PLANT to be erected are  intended  for
       civil use only.

9.11   Tri partite agreement

       BALCHEM shall,  upon written  request from PMD,  execute and enter into a
       tripartite agreement substantially on the terms set out in Appendix VI.

9.12   Language

       This agreement shall be executed in English language.  All communications
       between  the  Parties  concerning  anything  within  the  scope  of  this
       Agreement shall be in the English language.

       IN WITNESS  WHEREOF,  the PARTIES have duly executed  these  presents the
       day, month and year hereunder written against the relevant signature.

Balchem Corporation                           Project Management and Development
                                              Co., Ltd.

By    s/Dino A. Rossi                         By    s/Majed A. Al Ahmadi
      ---------------                               --------------------

Title President and CEO                       Title President and CEO
      -----------------                             -----------------

Date  October 13, 2005                        Date  October 18, 2005
      ----------------                              ----------------

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                                    Page 32sec document

                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                            REVENUE SHARING AGREEMENT

         This Revenue Sharing  Agreement (this  "AGREEMENT") is made and entered
into as of the 5th day of October,  2005,  between New Century  Equity  Holdings
Corp., a Delaware corporation ("NCEH"),  and ACP Investments LP (d/b/a Ascendant
Capital Partners), a Delaware limited partnership ("ASCENDANT").

                                   WITNESSETH:

         WHEREAS,  NCEH desires to provide capital to Ascendant in return for an
interest in the revenues  generated by Ascendant and its Investments (as defined
herein) and NCEH also intends to provide marketing services to Ascendant;

         NOW,  THEREFORE,  in  consideration  of the  premises and of the mutual
covenants and  agreements of the parties  herein  contained,  the parties hereto
hereby agree as follows:

Section 1.   DEFINITIONS.

     1.1.  "AUM"  shall  mean  assets  that are  managed  by  Ascendant  and its
Investments.

     1.2.  "BUDGET" shall mean that certain budget prepared by Ascendant that is
attached hereto as EXHIBIT 1.2.

     1.3. "EFFECTIVE DATE" shall mean October 1, 2005.

     1.4.  "FUNDS"  shall  mean:  ACP  Strategic  Opportunities  Fund II, LLC, a
Delaware Limited Liability Company; ACP Advantage Series Strategic Opportunities
Fund,  a Series of ACP Funds  Trust,  a Delaware  Statutory  Trust;  ACP Adviser
Series  Strategic  Opportunities  Fund, a Series of ACP Funds Trust,  a Delaware
Statutory Trust; ACP Institutional Series Strategic Opportunities Fund, a Series
of ACP Funds  Trust,  a  Delaware  Statutory  Trust;  and any other  funds  that
Ascendant or any of the Principals forms after the Effective Date.

     1.5. "FUND  DOCUMENTS"  shall mean the offering  memorandums,  subscription
agreements and any other marketing materials for the Funds.

     1.6. "GENERAL PARTNER" shall mean Ascendant Holdings, LLC.

     1.7.  "INVESTMENT ADVISORY COMMITTEE" means a committee that is responsible
for assuring  that the  Ascendant  portfolio  management  team is following  the
guidelines  specified in the Fund Documents.  The Investment  Advisory Committee
shall consist of Gary Shugrue,  Constantine Catsavis,  Tim Holmes and one person
appointed by NCEH, who shall initially be Steven Pully.

     1.8. "INVESTMENTS" means the Funds and any other investments, subsidiaries,
joint  ventures,  advisory or  subadvisory  arrangements  or other ventures that
Ascendant now or hereafter owns or participates in.

     1.9. "NCEH EVENT OF DEFAULT" shall mean either of the following:

          (a) NCEH fails to satisfy its obligation to make a Subsequent  Payment
in accordance with Section 2.1 of this Agreement and the conditions set forth in
Section 2.3(c) of this Agreement have been satisfied.

          (b) NCEH files a petition for bankruptcy.

     1.10.  ORGANIZATIONAL  DOCUMENTS  shall mean with respect to any entity the
certificate  or  articles  of  incorporation,  by-laws,  certificate  of limited
partnership,  partnership agreement, certificate of formation, limited liability
company agreement and any other organizational document of such entity.

     1.11.  "PRINCIPALS"  shall mean at any time those of the  following who are
employed by Ascendant at such time: Gary Shugrue, Timothy Holmes and Constantine
L. Catsavis.

     1.12.  "PRINCIPALS AGREEMENT" shall mean that certain agreement dated as of
the date  hereof  by and  among  NCEH  and  Gary  Shugrue,  Timothy  Holmes  and
Constantine  L.  Catsavis  and the  other  parties  thereto,  a copy of which is
attached hereto as EXHIBIT 1.12.

     1.13.  "REVENUE  INTEREST"  shall mean the right to receive a payment  from
Ascendant  in cash,  not  later  than  thirty  (30)  days  after the end of each
calendar  quarter  ending  after the  Effective  Date,  equal to the  Applicable
Percentage  (as herein  defined) of the revenues  generated by Ascendant  during
such quarter from AUM or through other sources,  including revenues generated by
or from any Investments,  net of any agreed commissions paid to third parties or
aid to NCEH pursuant to Section 5.6(b).  Except as otherwise provided in Section
5.7, for the purposes of this Agreement,  the "APPLICABLE  PERCENTAGE"  shall be
determined  as  follows:  (a) if the  fair  market  value  of AUM is  less  than
$40,000,000 at the end of any month during such calendar quarter, the Applicable
Percentage for such quarter shall be 50%; (b) if the fair market value of AUM is
less than  $200,000,000 at the end of any month during such calendar quarter and
is  $40,000,000  or  greater  at the end of every  month  during  such  calendar
quarter,  the  Applicable  Percentage  for such quarter shall be 40%; (c) if the
fair market  value of AUM is  $200,000,000  or greater at the end of every month
during such calendar quarter,  the Applicable  Percentage for such quarter shall
be 30%.

Section 2.   SALE AND PURCHASE OF REVENUE INTEREST.

     2.1.  SALE AND  PURCHASE  OF REVENUE  INTEREST.  At the Closing (as defined
below) upon the terms and subject to the conditions contained in this Agreement,
Ascendant shall sell to NCEH and NCEH shall purchase from Ascendant,  all right,
title and interest in and to the Revenue Interest (the "SALE"),  at an aggregate
purchase price of $1,550,000 (the "PURCHASE PRICE"). The Purchase Price shall be
payable in four equal  installments  with the first  installment  payable at the
Closing and, subject to the provisions of this Agreement, the second installment
payable on January 5, 2006, the third  installment  payable on April 5, 2006 and
the fourth  installment  payable on July 5, 2006 (the  second,  third and fourth
installments  being referred to herein as the "SUBSEQUENT  INSTALLMENTS" and the
dates on which the Subsequent  Installments are due being referred herein as the
"PAYMENT DATES").

     2.2. CLOSING.  The closing of the Sale shall take place simultaneously with
the execution and delivery of this  Agreement at the offices of Ascendant,  1235

                                       2

Westlakes Drive,  Suite 130, Berwyn, PA 19312 (the "CLOSING") at a time mutually
agreed upon by the parties  hereto and shall be effective for all purposes as of
the Effective Date.

     2.3. DELIVERIES AND CONDITIONS.

          (a) DELIVERIES OF NCEH. At the Closing, NCEH shall deliver:

              (i) $387,500 by wire transfer to an account  designated in writing
by Ascendant.

              (ii) A  Certificate  signed by a duly  authorized  officer of NCEH
stating that all of the representations and warranties of NCEH contained in this
Agreement are true and correct as of the date hereof.

              (iii) Such other  documents and  instruments  as may be reasonably
requested by Ascendant or its counsel.

              (iv) A copy of the Principals Agreement duly executed by NCEH.

          (b) DELIVERIES OF ASCENDANT. At the Closing, Ascendant shall deliver

              (i) A copy of the  Principals  Agreement  duly executed by each of
the Principals and each other limited partner of Ascendant.

              (ii)  Certificates  signed by each of the Principals  stating that
all of the  representations  and  warranties  of  Ascendant  contained  in  this
Agreement are true and correct as of the date hereof.

              (iii) Such other  documents and  instruments  as may be reasonably
requested by NCEH or its counsel.

          (c) CONDITIONS TO SUBSEQUENT  INSTALLMENTS.  The obligation of NCEH to
pay each of the Subsequent  Installments  shall be subject to the fulfillment on
or before the Payment  Date for such  Subsequent  Installment  of the  following
conditions:

              (i) The  representations  and warranties of Ascendant contained in
this  Agreement  are true and correct on and as of such  Payment  Date as though
such  representations  and  warranties  had been made on and as of such  Payment
Date.

              (ii)  Ascendant   shall  have  performed  and  complied  with  all
agreements,  covenants,  obligations and conditions  contained in this Agreement
that it is required to perform or comply with at or prior to such  Payment  Date
and shall not otherwise be in breach of this Agreement.

              (iii)  Ascendant  shall have delivered to NCEH at or prior to such
Payment Date (x) certificates signed by each of the Principals certifying to the
matters set forth in clauses (i) and (ii) above and (y) such other documents and
instruments as may be reasonably requested by NCEH or its counsel.

                                       3

Section 3.   REPRESENTATIONS AND WARRANTIES OF ASCENDANT.

     Ascendant represents and warrants to NCEH that:

     3.1.  CORPORATE  EXISTENCE  AND POWER.  Ascendant  and each of the entities
listed on SCHEDULE 3.1 are duly organized, validly existing and in good standing
under  the  laws of the  jurisdiction  under  which it was  formed,  and has all
requisite corporate power and authority to own, lease and operate its properties
and assets and to carry on its business as presently being conducted.

     3.2.  CORPORATE  AUTHORIZATION;  APPROVALS.  The  execution,  delivery  and
performance  by  Ascendant  and the General  Partner of this  Agreement  and the
consummation  by  Ascendant  and  the  General   Partner  of  the   transactions
contemplated hereby are within Ascendant's and the General Partner's partnership
or  limited  liability  company  powers  and have  been duly  authorized  by all
necessary  partnership or limited liability  company action.  Assuming that this
Agreement  constitutes the valid and binding  obligation of NCEH, this Agreement
constitutes a valid and binding  agreement of Ascendant and the General Partner,
enforceable  in  accordance  with its terms  (except  as  enforceability  may be
limited  by  applicable  bankruptcy,  insolvency,  reorganization,   moratorium,
fraudulent  transfer  and similar laws of general  applicability  relating to or
affecting  creditors'  rights,  or  by  general  equity  principles,   including
principles of commercial reasonableness, good faith and fair dealing).

     3.3. GOVERNMENTAL AUTHORIZATION, REGISTRATION, ETC. The execution, delivery
and performance by Ascendant of this Agreement and the consummation by Ascendant
of  the  transactions   contemplated   hereby  do  not  require  any  filing  or
registration  with,  notification to, or authorization,  consent or approval of,
any federal,  state or local governmental  authority,  court,  administrative or
regulatory agency or commission (each a "GOVERNMENTAL ENTITY").

     3.4.  NON-CONTRAVENTION;   REAL  PROPERTY.  The  execution,   delivery  and
performance by Ascendant of this Agreement and the  consummation by Ascendant of
the transactions contemplated hereby:

           (a) do not contravene or conflict with the  Organizational  Documents
of Ascendant or the General Partner or any of the Investments.

           (b) to Ascendant's knowledge,  violate,  conflict with or result in a
breach of any law  applicable to Ascendant or any of its  Investments or assets,
or

           (c) violate, result in a breach of, constitute a default (or an event
which, with notice or lapse of time, or both, would constitute a default) under,
result in the termination of, accelerate the performance  required by, result in
the creation or imposition  of any lien upon any of the  properties or assets of
Ascendant under, or require any consent,  approval,  notice or filing under, any
Ascendant Contracts (as defined in Section 3.1(a)).

Neither Ascendant nor any of its subsidiaries owns any real property.

                                       4

     3.5. OWNERSHIP OF ASCENDANT.

           (a) All outstanding partnership interests of Ascendant have been duly
authorized and validly issued,  and are fully paid,  non-assessable  and free of
preemptive  rights. The ownership of Ascendant and the General Partner is as set
forth in SCHEDULE 3.5.

           (b) Except as  described  in  subsection  (a)  above,  as of the date
hereof there are no outstanding:

              (i) equity interests in Ascendant or its subsidiaries;

              (ii) securities of Ascendant or its subsidiaries  convertible into
or exchangeable for equity interests in Ascendant or its subsidiaries; or

              (iii) options,  warrants or other rights to acquire from Ascendant
or its  subsidiaries,  equity  interests in, or securities  convertible  into or
exchangeable for equity interests in, Ascendant or its  subsidiaries.  There are
no  outstanding  obligations  of Ascendant or its  subsidiaries  to  repurchase,
redeem or otherwise acquire any of the outstanding equity interests therein.

     3.6. INVESTMENTS.

           (a)  SCHEDULE  3.6 sets  forth a list of all  Investments  and  their
respective  jurisdictions  of incorporation or organization and includes a list,
by Fund, of each  underlying fund in which any of the Funds has invested and the
aggregate  amount  invested  by such Fund in such  underlying  fund.  All of the
Investments  are owned by  Ascendant,  directly or  indirectly,  as set forth in
SCHEDULE  3.6,  free and clear of any liens and free of any other  limitation or
restriction,  including any limitation or restriction on the right to vote, sell
or otherwise  dispose of such capital stock or other  ownership  interest (other
than any of the foregoing  that may exist under the  Securities Act or any state
securities laws).

           (b)  All  ownership  interests  in each  Investment  have  been  duly
authorized and validly issued,  and are fully paid,  non-assessable  and free of
preemptive rights.

           (c) Except as set forth in SCHEDULE 3.6, none of the  Investments  of
Ascendant owns or controls directly or indirectly, or has any direct or indirect
equity  participation  in,  any  corporation,   partnership,  limited  liability
company, joint venture or other entity.

     3.7.  ASCENDANT SEC DOCUMENTS.  Each of Ascendant and its  Investments  has
filed all forms,  reports and documents  with the SEC required to be filed by it
prior  to  the  date  of  this  Agreement  (together  with  the  amendments  and
supplements  to such  filings  filed  prior to the date of this  Agreement,  the
"ASCENDANT SEC DOCUMENTS").  Each Ascendant SEC Document,  as of its filing date
(or if amended, as of the date of its last amendment) complied as to form in all
material  respects with the  applicable  requirements  of the  Securities Act of
1933,  as amended  (the  "SECURITIES  ACT"),  the Exchange  Act, the  Investment
Company Act of 1940, as amended (the "INVESTMENT  COMPANY ACT") and the Advisers
Act, as the case may be. No Ascendant SEC Document, as of its filing date (or as
of the date it became effective if filed under the Securities Act, or if amended
or supplemented, as of the date of its last amendment or supplement),  contained

                                       5

any untrue  statement of a material  fact or omitted to state any material  fact
required to be stated therein or necessary in order to make the statements  made
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading.  No subsidiary of Ascendant is required to file any forms,  reports,
or other documents pursuant to the Securities Act or the Exchange Act.

     3.8. FINANCIAL STATEMENTS; LIABILITIES.

          (a)  Each of the  consolidated  balance  sheets  of each of the  Funds
included in the Ascendant SEC Documents fairly presents in all material respects
the consolidated  financial position of such Fund and its subsidiaries as of the
respective date thereof, and the other related consolidated financial statements
(including  the notes thereto)  included  therein fairly present in all material
respects  the  results  of  operations  and  cash  flows  of such  Fund  and its
subsidiaries for the respective  periods or as of the respective dates set forth
therein (collectively,  the "FUND FINANCIAL  STATEMENTS").  As of the respective
filing date for the applicable  Ascendant SEC Document in which it was included,
each of the Fund Financial Statements  (including the notes thereto) complied in
all material respects with the then applicable  accounting  requirements and the
published  rules  and  regulations  of the SEC  with  respect  thereto,  and was
prepared in accordance  with  accounting  principles  generally  accepted in the
United States ("GAAP") applied on a consistent basis during the periods or as of
the respective dates involved, except as otherwise noted therein and subject, in
the  case  of  unaudited  interim  financial  statements,   to  normal  year-end
adjustments.

          (b) Attached  hereto as EXHIBIT 3.8(b) are the unaudited  consolidated
balance sheet and statements of operations  and retained  earnings and cash flow
of  Ascendant as of and for the year ended  December 31, 2004 and the  unaudited
consolidated  balance sheet and statements of operations  and retained  earnings
and cash  flow of  Ascendant  of and for the six  months  ended  June  30,  2005
(collectively,  the "ASCENDANT FINANCIAL  STATEMENTS").  The Ascendant Financial
Statements  are  complete  and correct in all  material  respects  and have been
prepared in accordance  with GAAP on a consistent  basis  throughout the periods
indicated.  The  Ascendant  Financial  Statements  fairly  present the financial
condition  and results of  operations  of  Ascendant as of the dates and for the
periods  indicated  therein,  subject to normal year end  adjustments  which are
neither  individually  nor in the aggregate  expected to be material.  Except as
reflected in the  Ascendant  Financial  Statements or disclosed on SCHEDULE 3.9,
Ascendant has no material debts,  liabilities,  guarantees or other obligations,
whether accrued, absolute, contingent or otherwise.

          (c) Ascendant  has delivered to NCEH an estimated  balance sheet as of
September 30, 2005, which represents Ascendant's reasonable best estimate of the
expected assets and liabilities of Ascendant as of such date.

     3.9. ABSENCE OF CERTAIN CHANGES. (a) Since December 31, 2004, Ascendant and
each of its  subsidiaries  has  conducted  its business in the  ordinary  course
consistent  with past practice and,  except as disclosed on SCHEDULE 3.9,  there
has not been:

              (i) any change in the assets, liabilities, condition (financial or
otherwise),  affairs, earnings, business,  operations, or prospects of Ascendant
from that  reflected in the latest  balance sheet  included in the Ascendant SEC

                                       6

Documents,  except for changes in the ordinary course of business which have not
been, either individually or in the aggregate, materially adverse;

              (ii) any change in the  liabilities  or  obligations of Ascendant,
contingent  or  otherwise,  whether  due or to  become  due,  whether  by way of
guaranty,  endorsement,  indemnity,  warranty, or otherwise,  except liabilities
incurred  in the  ordinary  course of  business,  none of which  materially  and
adversely affects the business,  prospects,  condition,  affairs,  properties or
assets of Ascendant;

              (iii) any change in the accounting  methods or practices  followed
by Ascendant;

              (iv) any  issuance of equity  interests  in  Ascendant or options,
warrants,  or rights or agreements or  commitments to purchase or issue any such
interests or grant such options,  warrants or rights, except for those issuances
contemplated or permitted by this Agreement or the Principals Agreement; or

              (v) any  damage,  destruction  or loss,  whether or not covered by
insurance,  materially  and  adversely  affecting the  properties,  operation or
business of Ascendant;

              (vi) any waiver by Ascendant of a valuable  right or of a material
debt owed to it;

              (vii)  any  loans  made by  Ascendant  to any of its  partners  or
employees or members or employees of the General  Partner other than advances of
expenses made in the ordinary course of business;

              (viii) any sale,  transfer,  or lease of any of Ascendant's assets
except in the  ordinary  course of business or any mortgage or pledge of or lien
imposed upon any of Ascendant's assets;

              (ix) to the best of  Ascendant's  knowledge,  any  other  event or
condition of any  character  that has or could  reasonably be expected to have a
material  adverse  effect  on  the  business,  prospects,   condition,  affairs,
operations, properties or assets of Ascendant; or

              (x) any  agreement  by  Ascendant  to do or enter  into any of the
foregoing.

     3.10. LITIGATION AND LEGAL COMPLIANCE.

          (a) As of the date hereof,  each of Ascendant and the  Investments has
no notice of any claims, actions,  suits,  proceedings or investigations pending
or  threatened  by or  against  Ascendant  or any of its  subsidiaries.  Neither
Ascendant nor any of its  Investments  is subject to any  outstanding  judgment,
injunction,  order or decree of any  Governmental  Entity,  or any  judicial  or
administrative  actions,  proceedings or investigations  pending, or threatened,
which question the validity of this Agreement or any action taken or to be taken
by Ascendant in connection with this Agreement.

                                       7

          (b) Ascendant and its  Investments are in compliance with all federal,
state and local laws, statutes, rules, regulations,  ordinances, permits, orders
or writs,  including  without  limitation  the Advisers  Act and the  Investment
Company Act and all rules promulgated thereunder.

          (c) All disclosures required to be made to investors in any Investment
have been made and such  disclosures  did not contain any untrue  statement of a
material fact or omit to state any material  fact required to be stated  therein
or necessary in order to make the statements  made therein,  in the light of the
circumstances under which they were made, not misleading.

          (d) Each of Ascendant and its Investments  has all permits,  licenses,
approvals,  authorizations  of, and  registrations  with and under all laws, and
from all  Governmental  Entities  required for Ascendant and its subsidiaries to
carry on their respective  businesses as currently  conducted,  except where the
failure  to  have  any  such  permit,   license,   approval,   authorization  or
registration  would not have a  material  adverse  affect on  Ascendant  or such
Investment.

     3.11. CONTRACTS.

          (a) SCHEDULE  3.11(a)  contains a description of each of the following
to which Ascendant or any of its Investments is a party (i) that requires active
performance  by  Ascendant  as of the  date  hereof  or (ii)  that is  otherwise
material to Ascendant, whether active or not (the "ASCENDANT CONTRACTS"):

              (i) all agreements, contracts, leases or binding commitments;

              (ii) any indenture,  mortgage,  promissory note, loan agreement or
other  agreement or commitment for the borrowing of money by Ascendant or any of
its subsidiaries;

              (iii) any lease,  sublease or other agreement pursuant to which it
is a lessee of or holds or operates any real or personal  property  owned by any
third party;

              (iv) any option or other  executory  agreement or other  agreement
with  remaining  obligations  thereunder  to purchase or acquire any interest in
assets or property;

              (v) any option or other  executory  agreement  or other  agreement
with  remaining  obligations  thereunder  to sell or dispose of any  interest in
assets  or  property  other  than  equity  option   agreements  with  employees,
independent  contractors  and directors  pursuant to  Ascendant's  equity option
plans;

              (vi) any contract or agreement creating a joint venture or similar
arrangement by which any assets, properties, rights, or business of Ascendant or
any Investment is materially affected;

              (vii) any guaranty,  keep well, make whole or similar agreement of
or with respect to the obligations of third parties;

              (viii) any agreement which  restricts  Ascendant or any Investment
from doing business anywhere in the world or limits the business in which it may
engage;

                                       8

              (ix) any  agreement or  arrangement  under which  Ascendant or any
Investment  agrees to  indemnify  any  person or to share tax  liability  of any
person;

              (x) any license of material  Ascendant  Intellectual  Property (as
defined in Section 3.13)  (including use of the name of Ascendant or any similar
name) of or by Ascendant other than in the ordinary course of business;

              (xi) any contracts for insurance;

              (xii) any  contract or  agreement  under which  Ascendant  has the
obligation to issue or sell any security; and

              (xiii) the employment agreements between Ascendant and each of the
Principals (the "EMPLOYMENT AGREEMENTS").

          (b) Ascendant  has delivered to NCEH true and complete  copies of each
of the Employment Agreements.

          (c) Each  Ascendant  Contract  is a  valid,  binding  and  enforceable
obligation of Ascendant  and, to  Ascendant's  knowledge,  of the other party or
parties  thereto  (except  as  enforceability   may  be  limited  by  applicable
bankruptcy,  insolvency,  reorganization,  moratorium,  fraudulent  transfer and
similar  laws of  general  applicability  relating  to or  affecting  creditors'
rights,  or by general  equity  principles,  including  principles of commercial
reasonableness,  good faith and fair dealing), and each Ascendant Contract is in
full force and effect.

          (d) Neither Ascendant,  any Investment nor, to Ascendant's  knowledge,
any  other  party  thereto,  is in breach  of or  default  under any term of any
Ascendant  Contract or has repudiated any term of any Ascendant  Contract except
as set forth in SCHEDULE 3.11(a).

          (e) Ascendant has not received any written  notice of  termination  or
cancellation  with respect to any  Ascendant  Contract,  and no other party to a
Ascendant Contract plans to terminate or cancel any such agreement.

     3.12.  BUDGET. The Budget was prepared using the reasonable best efforts of
Ascendant and represents  Ascendant's  reasonable  best estimate of its expected
revenues and expenses  for the periods and expected  cash  balances at the times
covered thereby.

     3.13. INTELLECTUAL PROPERTY. Each of Ascendant and its Investments owns all
right, title and interest in and to its trademarks,  service marks, trade names,
copyrights,  patents and other intellectual property  (collectively,  "ASCENDANT
INTELLECTUAL  PROPERTY")  including any registrations  therefor and the goodwill
associated  therewith  and  considers  same adequate to carry on the business of
Ascendant or such Investment.

     3.14. TITLE TO PROPERTY AND ASSETS. Ascendant has good and marketable title
to its property and assets free and clear of all mortgages,  liens,  loans,  and
encumbrances,  except such  encumbrances  and liens which arise in the  ordinary
course of business and do not materially impair Ascendant's  ownership or use of
such  property or assets.  With  respect to the  property  and assets it leases,
Ascendant is in compliance with such leases and, to its knowledge, holds a valid

                                       9

leasehold  interest  free  of  any  liens,  claims,  or  encumbrances.   All  of
Ascendant's  properties  and  assets  are,  in all  material  respects,  in good
operating and usable condition, subject to normal wear and tear.

     3.15. TAX MATTERS.  Ascendant (i) has timely filed all tax returns that are
required  to have been filed by it with all  appropriate  Governmental  Entities
(and all such  returns are complete and fairly  reflect its  operations  for tax
purposes in all material  respects);  and (ii) has timely paid all taxes owed or
assessments by it (other than taxes the validity of which are being contested in
good  faith  by  appropriate  proceedings).  The  assessment  of any  additional
material  taxes for periods for which returns have been filed is not expected to
exceed the recorded liability therefor and, to Ascendant's knowledge,  there are
no material unresolved questions or claims concerning Ascendant's tax liability.
To the best of Ascendant's  knowledge and belief,  Ascendant's  tax returns have
not been  reviewed  or  audited  by any  taxing  authority.  There is no pending
dispute  with any taxing  authority  relating to any of said returns  which,  if
determined  adversely to Ascendant,  would result in the assertion by any taxing
authority of any valid deficiency in a material amount for taxes.

     3.16.  DISCLOSURE.  Ascendant has provided NCEH with all  information  that
NCEH has requested for deciding whether to purchase the Revenue Interest and all
information  that  Ascendant  believes is material and  reasonably  necessary to
enable  NCEH to make  such  decision.  Neither  this  Agreement,  nor any  other
statements or certificates  made or delivered in connection  herewith,  contains
any  untrue  statement  of a  material  fact or omits to state a  material  fact
necessary to make the  statements  herein or therein not  misleading in light of
the circumstances in which they were made.

Section 4.   REPRESENTATIONS AND WARRANTIES OF NCEH.

     NCEH represents and warrants to Ascendant that:

     4.1.  CORPORATE  EXISTENCE AND POWER. NCEH is a corporation duly organized,
validly  existing and in good standing under the laws of the jurisdiction of its
incorporation, and has all requisite corporate power and authority to own, lease
and operate its  properties and assets and to carry on its business as presently
being conducted.

     4.2.  CORPORATE  AUTHORIZATION;  APPROVALS.  The  execution,  delivery  and
performance  by NCEH  of this  Agreement  and  the  consummation  by NCEH of the
transactions  contemplated  hereby are within NCEH's  corporate  powers and have
been duly  authorized  by all  necessary  corporate  action.  Assuming that this
Agreement  constitutes  the valid and  binding  obligation  of  Ascendant,  this
Agreement  constitutes  a valid and binding  agreement of NCEH,  enforceable  in
accordance with its terms (except as enforceability may be limited by applicable
bankruptcy,  insolvency,  reorganization,  moratorium,  fraudulent  transfer and
similar  laws of  general  applicability  relating  to or  affecting  creditors'
rights,  or by general  equity  principles,  including  principles of commercial
reasonableness, good faith and fair dealing).

     4.3. GOVERNMENTAL AUTHORIZATION. The execution, delivery and performance by
NCEH  of  this  Agreement  and the  consummation  by  NCEH  of the  transactions
contemplated hereby do not require any filing or registration with, notification

                                       10

to, or authorization, consent or approval of any Governmental Entity, other than
compliance  with any applicable  requirements  of the Exchange Act following the
Closing.

     4.4.  PURCHASE  FOR OWN  ACCOUNT.  The  Revenue  Interest  acquired by NCEH
hereunder  will be acquired  for  investment  for NCEH's own  account,  not as a
nominee  or agent,  and not with a view to the  public  resale  or  distribution
thereof  within  the  meaning  of the  Securities  Act,  and NCEH has no present
intention of selling,  granting any participation in, or otherwise  distributing
the same.

     4.5.  DISCLOSURE OF INFORMATION.  Without in any way limiting NCEH's rights
and remedies under the Agreement,  NCEH acknowledges that it has received or has
had full access to all the information it considers  necessary or appropriate to
make an informed investment decision with respect to the Revenue Interest.

Section 5.   COVENANTS.

     5.1.  PAYMENTS.  Ascendant shall pay to NCEH all amounts payable in respect
of the  Revenue  Interest  from and  after the  Effective  Date as  promptly  as
practicable and in any event no later than thirty (30) days following the end of
any calendar  quarter and all amounts  payable with respect to the  provision by
NCEH of  marketing  services in  accordance  with any  agreement  of the parties
concerning the provision of such services.

     5.2. REFUND.  If (a) Ascendant  materially  breaches any of its obligations
under this Agreement (with any breach of Section 5.9 being considered a material
breach) and such breach is not cured within forty-five (45) days after notice of
such  breach is given to  Ascendant  or (b)  Ascendant  ceases  normal  business
operations  or engages  in any  effort to close the Funds or (c) a  petition  in
bankruptcy  is filed by or against  Ascendant,  then in any such case  Ascendant
shall refund to NCEH an amount equal to all payments theretofore made on account
of the Purchase Price not later than thirty (30) days after NCEH gives Ascendant
a written  notice  requesting  such refund and  Ascendant  shall have no further
obligation to make payments in respect of the Purchase  Price  thereafter.  Such
refund shall not reduce the Revenue Interest acquired by NCEH hereunder.

     5.3. FINANCIAL STATEMENTS. Ascendant shall furnish or cause to be furnished
to NCEH:

          (a) as soon as reasonably  possible,  and in any event within 120 days
after the end of each  fiscal  year of  Ascendant,  the  unaudited  consolidated
balance  sheet of  Ascendant as at the end of such fiscal  year,  and  unaudited
consolidated  statements  of operations  and retained  earnings and cash flow of
Ascendant  for such fiscal  year,  all in  reasonable  detail,  and  prepared in
accordance with GAAP;

          (b) as soon as  reasonably  possible,  and in any event within 45 days
after the end of each of the first three fiscal  quarters of each fiscal year of
Ascendant, the unaudited consolidated balance sheet and statements of operations
and  retained  earnings  and cash flow of  Ascendant  for such  quarter,  all in
reasonable  detail,  prepared  in  accordance  with GAAP,  and  certified  to be
complete and correct in all material respects (subject to year-end  adjustments)
by the General Partner of Ascendant;

                                       11

          (c) as soon as  reasonably  possible,  and in any event within 30 days
after  the  end of each  calendar  month,  a  balance  sheet,  profit  and  loss
statement,  cash flow statement and operating  report relating to the operations
of Ascendant for such calendar month;

          (d) as soon as reasonably  possible,  and in any event within 120 days
after the end of each fiscal year of each Investment,  the audited  consolidated
balance sheet of such  Investment as at the end of such fiscal year, and audited
consolidated  statements  of operations  and retained  earnings and cash flow of
such Investment for such fiscal year, all in reasonable  detail, and prepared in
accordance  with GAAP, and  accompanied by the  unqualified  report thereon of a
nationally  recognized  independent  certified public accountant firm reasonably
satisfactory to NCEH;

          (e) as soon as  reasonably  possible,  and in any event within 45 days
after  the  end of the  second  fiscal  quarter  of  each  fiscal  year  of each
Investment,   the  unaudited   consolidated  balance  sheet  and  statements  of
operations  and retained  earnings and cash flow of such  Investment for the six
months of such fiscal year,  all in  reasonable  detail,  prepared in accordance
with GAAP,  and  certified to be complete  and correct in all material  respects
(subject to year-end  adjustments)  by the General  Partner of  Ascendant or the
chief executive officer of such Investment;

          (f) as soon as  reasonably  possible,  and in any event within 30 days
after  the  end of each  calendar  month,  a  balance  sheet,  profit  and  loss
statement,  cash flow statement and operating  report relating to the operations
of each Investment for such calendar month;

          (g) promptly after the preparation  thereof, and in any case not later
than  30  days  prior  to the  beginning  of  each  fiscal  year  of  Ascendant,
Ascendant's budget, business plan and financial forecasts, including a projected
balance  sheet,  profit  and loss  statement  and cash flow  statement,  for the
forthcoming  year,  and any other similar  reports  customarily  prepared by the
management of Ascendant for internal use;

          (h) promptly after receipt,  all reports delivered to Ascendant by its
accountants;

          (i)  promptly  after  the  commencement  or  threatened   commencement
thereof,  notice of all actions, suits,  investigations,  and proceedings before
any court or governmental  department,  arbitration  panel,  commission,  board,
bureau,  agency or instrumentality,  domestic or foreign,  materially  affecting
Ascendant or any of its subsidiaries  other than ordinary and routine litigation
covered under the limits of existing insurance policies;

          (j)  promptly  after  the  sending  or filing  thereof,  copies of all
reports that Ascendant or any of its Investments  sends to its equity holders or
investors,  and copies of all  regular,  periodic and special  reports,  and all
registration  statements,  if any, which  Ascendant may file with the Securities
and Exchange Commission or any other Governmental Entity;

          (k) promptly, copies of minutes of meetings of the Board of Directors,
Board of Managers or comparable governing body of any the Investments and of any
press releases issued by Ascendant or any of the Investments;

                                       12

          (l) promptly,  copies of all  amendments to any of the  Organizational
Documents of Ascendant or any of its Investments; and

          (m)  such  other  information  regarding  the  business,  affairs  and
condition  of  Ascendant  or its  Investments  as  NCEH  may  from  time to time
reasonably request.

     5.4. ACCESS TO  INFORMATION.  At any reasonable time and from time to time,
upon  reasonable  notice,  Ascendant  shall  permit  NCEH,  and/or  any agent or
representative  thereof,  to  examine,  inspect,  audit  and make  copies of and
abstracts  from the books and records  of, and visit and inspect the  properties
and assets  of,  Ascendant  and to  discuss  the  business  affairs,  marketing,
finances  and  accounts of  Ascendant  with any of its  partners,  officers  and
directors.  Ascendant  shall furnish to NCEH,  promptly upon request,  copies of
such financial, operating and marketing data and other information as reasonably
requested by NCEH.  Upon three  business  days' prior notice to Ascendant,  NCEH
shall have the right to confer in its discretion with the independent  certified
public  accountants  of Ascendant at any time during normal  business hours upon
any matter involving the financial  condition of Ascendant or any Investment and
such  accountants  are hereby  irrevocably  authorized to fully discuss with and
disclose to NCEH all such matters. NCEH, by its exercise of the rights conferred
by this Section 5.4, agrees to maintain the  confidentiality  of any information
received by it pursuant to this  Section  5.4,  until such  information  becomes
public or is otherwise no longer  confidential,  unless such information becomes
public  through  action or omission of NCEH,  provided,  however,  that NCEH may
disclose any information received by it pursuant to this Section 5.4 as required
by law and share such information with its partners, if any, and with its legal,
accounting, financial and other advisors and representatives.

     5.5. LEGAL EXISTENCE, COMPLIANCE, ETC.

          (a) Ascendant  shall  maintain its existence as a limited  partnership
duly  organized,  validly  existing and in good  standing  under the laws of the
state of its organization.

          (b) Ascendant shall conduct its business in compliance in all material
respects  with all  permits and  licenses  issued by, and all  statutes,  rules,
regulations  and orders of, and all  restrictions  imposed by, all  governmental
authorities, domestic or foreign, federal or state, applicable to the conduct of
its business and the ownership of its property  (including,  without limitation,
applicable statutes, rules, regulations, orders and restrictions relating to the
rendering of investment advice and the issuance and sale of securities).

          (c) Ascendant shall conduct its business in compliance in all material
respects with all licenses, agreements and contracts to which it is a party.

          (d)  Ascendant  shall keep adequate  records and books of account,  in
which  complete  entries  will be  made in  accordance  with  GAAP  consistently
applied, reflecting all of its financial transactions.

          (e) Ascendant shall  maintain,  keep, and preserve all of its material
properties  (tangible  and  intangible)  necessary in the proper  conduct of its
business in good working order and condition, ordinary wear and tear expected.

                                       13

          (f) Ascendant shall maintain, or cause to be maintained, in full force
and  effect,   with   financially   sound  and  reputable   insurers,   workers'
compensation,  fire, casualty, and liability insurance,  with extended coverage,
and other  insurance  all in such  amounts and  covering  such risks as shall be
reasonable  and prudent in view of the business and  operations of Ascendant and
in any event no less extensive  than is  customarily  maintained by companies of
established reputation engaged in the same or similar businesses.

     5.6. MARKETING SERVICES.

          (a) NCEH shall provide  marketing  services to Ascendant by consulting
and reviewing with Ascendant its marketing materials,  distribution channels and
other related matters, on such terms as NCEH and Ascendant may agree.

          (b) To the  extent  permitted  by  applicable  law,  for  any  account
identified in writing by NCEH and accepted by Ascendant, Ascendant agrees to pay
to or at the  direction  of NCEH a fee of 20% of all fees  received by Ascendant
with  respect  to such  account  for as long as such  account is  invested  with
Ascendant or with any Investment,  PROVIDED that an account that has not yielded
an investment  with  Ascendant or with an Investment  for eighteen  months after
being  identified  to  Ascendant  by NCEH must be  accepted  again in writing by
Ascendant to remain subject to this provision.  NCEH shall be entitled to assign
its rights under this Section  5.6(b) with the prior consent of Ascendant  which
consent shall not be unreasonably withheld, delayed or conditioned.

          (c) Ascendant shall be responsible for assuring that, and shall cause,
all offering and marketing  materials to fully disclose,  to the extent required
by applicable  law, the rights and  obligations of the parties to this Agreement
and any marketing arrangements between them.

     5.7. REPURCHASE OF REVENUE INTEREST.

          (a) If for any calendar quarter starting after the second  anniversary
of the Effective Date the Applicable Percentage of the Revenue Interest is equal
to 30% (a "QUALIFYING  QUARTER"),  Ascendant  shall have the right to repurchase
from NCEH a portion of the Revenue Interest so that, after giving effect to such
repurchase, NCEH shall hold the Residual Revenue Interest (as defined below) for
a repurchase  price that equals the sum of (x) the Purchase  Price actually paid
to  Ascendant  plus  (y) a 25%  annualized  return  on each  installment  of the
Purchase Price so paid,  compounded  annually,  from the date of payment of such
installment to the date of payment of the repurchase price. For purposes of this
Agreement the term "RESIDUAL  REVENUE  INTEREST"  shall mean a Revenue  Interest
that has an  Applicable  Percentage  of: (i) 10% for the period from the date on
which the  repurchase  resulting in NCEH holding the Residual  Interest  becomes
effective  (the  "REPURCHASE  EFFECTIVE  DATE")  until the day  before the first
anniversary of the Repurchase  Effective  Date;  (ii) 9% for the period from the
first anniversary of the Repurchase  Effective Date to the day before the second
anniversary of the Repurchase  Effective Date;  (iii) 8% for the period from the
second anniversary of the Repurchase  Effective Date to the day before the third
anniversary of the Repurchase  Effective  Date;  (iv) 7% for the period from the
third anniversary of the Repurchase  Effective Date to the day before the fourth
anniversary  of the  Repurchase  Effective  Date; (v) 6% for the period from the

                                       14

fourth anniversary of the Repurchase  Effective Date to the day before the fifth
anniversary  of  the  Repurchase   Effective   Date;  and  (vi)  5%  thereafter.
Ascendant's  right to  repurchase a portion of the Revenue  Interest  under this
Section  5.7(a) shall be  exercisable  by giving NCEH written notice of exercise
not later  than sixty (60) days  after the end of any  Qualifying  Quarter.  The
repurchase  price  shall be paid by wire  transfer to an account  designated  by
NCEH, or in the absence of such  designation by certified  check made payable to
NCEH,  not less than  thirty (30) nor more than sixty (60) days after the notice
of exercise is given and upon such payment the repurchase shall be effective.

          (b) In the event of an NCEH Event of Default  that is not cured within
thirty (30) days after Ascendant gives written notice thereof to NCEH, Ascendant
shall have the right to repurchase the entire Revenue  Interest for a repurchase
price that equals the sum of (i) the aggregate  installments  of Purchase  Price
actually  paid to  Ascendant  plus (ii) a 10%  annualized  return on the "unpaid
balance" from time to time of each  installment  of Purchase  Price,  compounded
annually,  from the date of payment of such installment by NCEH to the date such
installment is deemed "repaid" in full as provided herein.  Ascendant's right to
repurchase  the Revenue  Interest  shall be  exercisable  by giving NCEH written
notice of exercise  not later than fifteen (15) days after the end of the thirty
day period referred to above.  The repurchase under this Section 5.7(b) shall be
effective  upon  payment  in  full  of  the  repurchase  price.   Prior  to  the
effectiveness  of the  repurchase,  Ascendant shall continue to make payments to
NCEH in respect of the Revenue  Interest as provided by this  Agreement and such
payments  shall be applied to, and shall be deemed to be payments on account of,
the repurchase  price.  Ascendant shall pay any unpaid balance of the repurchase
price on the third  anniversary of the date that the notice of exercise is given
under this Section 5.7(b).  Payments on account of the repurchase price shall be
applied in the following  order: (1) FIRST, to the return on installments of the
Purchase Price described in clause (ii) above in the inverse order in which such
installments  were paid by NCEH and (2)  SECOND,  to the  amounts  described  in
clause (i) above.  For purposes of  calculating  the return on  installments  of
Purchase  Price  under  clause  (ii)  above,  each  payment  on  account  of the
repurchase  price  that is  applied as  described  in clause (2) above  shall be
deemed  to  "repay"  the  installments  of  Purchase  Price (to the  extent  not
previously  deemed  "repaid" under this provision) in the inverse order in which
such  installments  were paid by NCEH and the "unpaid balance" of an installment
shall be deemed to be the amount of such installment paid by NCEH reduced by the
amount by which such  installment is deemed "repaid" under this  provision.  The
rights granted to Ascendant under this Section 5.7(b) shall  constitute the sole
and exclusive remedy of Ascendant in the event of an NCEH Event of Default.

          (c)  Upon  Ascendant's   giving  a  notice  exercising  its  right  to
repurchase all or a portion of the Revenue  Interest in accordance  with Section
5.7(b),  all obligations of NCEH to pay any amount in respect of any installment
of the Purchase  Price (whether or not then due) shall cease and NCEH shall have
no  further  obligation  to make  any  payment  of  Purchase  Price  thereafter.
Notwithstanding  the giving of a notice  under  Section  5.7(a) or 5.7(b),  NCEH
shall  continue to be entitled to receive all  payments to which it is otherwise
entitled under this Agreement,  with respect to the entire Revenue Interest held
by it immediately  prior to the giving of such notice,  that accrue prior to the
date that the repurchase of the Revenue Interest or portion thereof with respect
to which the notice is given becomes effective in accordance with Section 5.7(a)
or 5.7(b), as the case may be.

                                       15

     5.8.  NONCOMPETITION  BY NCEH.  NCEH  shall  not  acquire  more  than a 50%
ownership  interest in or a right to receive  more than 50% of the income of the
management  of any fund of funds that  invests  30% or more of its assets  under
management  in any one or more of the  underlying  funds in which  the Funds are
then  invested.  Ascendant  shall keep NCEH advised,  promptly  after moneys are
invested,  of the identities of the  underlying  funds in which any of the Funds
are invested.

     5.9.  BUDGET.  Ascendant  shall be in conformance  with the cash,  debt and
accrued  expense  levels  set forth in the  Budget at the end of every  quarter,
adjusting  for payments  required to be made by and to NCEH,  provided  that the
debt and  accrued  expense  levels may be higher than set forth in the Budget if
such amounts are  reasonably  necessary  and incurred in the ordinary  course of
business  and all items of  expense  and  revenue  are  booked  on a timely  and
appropriate basis.

     5.10.   INVESTMENT  ADVISORY   COMMITTEE.   Ascendant  shall  maintain  the
Investment  Advisory  Committee  and  hold  regular  meetings  thereof  no  less
frequently than four times per year.

     5.11. NCEH ADVISORY COMMITTEE. NCEH shall create an Advisory Committee that
Gary Shugrue  shall be a member of. Such  Advisory  Committee  shall advise NCEH
with regard to strategies  and other issues  pertaining to the  acquisition  and
management of funds of funds that invest in hedge funds.

Section 6.   INDEMNITY.

          (a) Ascendant shall  indemnify,  defend and hold harmless NCEH and its
shareholders, directors, officers, employees, agents, affiliates and controlling
parties  (each,  an  "NCEH  INDEMNIFIED  PARTY")  from and  against  any and all
liability,  loss or damage,  together  with all  reasonable  costs and  expenses
related thereto (including legal and accounting fees and expenses), arising from
the  untruth,  inaccuracy  or  breach of any such  representations,  warranties,
covenants  or  agreements  of  Ascendant  contained  in  this  Agreement  or the
assertion  of any  claim  relating  to the  foregoing  (each an  "NCEH  CLAIM");
PROVIDED,  HOWEVER,  that no indemnification shall be required hereunder for the
gross negligence or willful  misconduct of any NCEH  Indemnified  Party. In case
any NCEH Claim is brought against an NCEH Indemnified  Party,  Ascendant will be
entitled  to  participate  in  and  assume  the  defense  thereof  with  counsel
reasonably  satisfactory to such NCEH  Indemnified  Party, and after notice from
Ascendant to such NCEH  Indemnified  Party of its election to assume the defense
thereof,  Ascendant  shall  be  responsible  for any  legal  or  other  expenses
subsequently  incurred by the latter in  connection  with the  defense  thereof,
provided that if any NCEH Indemnified Party shall have reasonably concluded that
there may be one or more legal defenses available to such NCEH Indemnified Party
that conflict in any material respect with those available to Ascendant, or that
such NCEH Claim  involves or could have an effect upon matters  beyond the scope
of the indemnity  agreement  provided in this Section 6(a),  Ascendant shall not
have the  right to  assume  the  defense  of such  action on behalf of such NCEH
Indemnified  Party and Ascendant shall reimburse such NCEH Indemnified Party and
any person or entity controlling such NCEH Indemnified Party for that portion of
the reasonable fees and expenses of any counsel retained by the NCEH Indemnified
Party that are  reasonably  related  to the  matters  covered  by the  indemnity

                                       16

agreement provided in this Section 6(a). Ascendant shall not make any settlement
of any claim  indemnified  against  under this  Section 6(b) without the written
consent of the NCEH  Indemnified  Party or Parties,  which  consent shall not be
unreasonably withheld.

          (b) NCEH shall indemnify,  defend and hold harmless  Ascendant and its
shareholders, directors, officers, employees, agents, affiliates and controlling
parties (each,  an "ASCENDANT  INDEMNIFIED  PARTY") from and against any and all
liability,  loss or damage,  together  with all  reasonable  costs and  expenses
related thereto (including legal and accounting fees and expenses), arising from
the  untruth,  inaccuracy  or  breach of any such  representations,  warranties,
covenants or agreements of NCEH  contained in this Agreement or the assertion of
any claim  relating to the  foregoing  (each an  "ASCENDANT  CLAIM");  PROVIDED,
HOWEVER,  that no  indemnification  shall be  required  hereunder  for the gross
negligence or willful misconduct of any Ascendant Indemnified Party. In case any
Ascendant Claim is brought against an Ascendant  Indemnified Party, NCEH will be
entitled  to  participate  in  and  assume  the  defense  thereof  with  counsel
reasonably  satisfactory to such Ascendant  Indemnified  Party, and after notice
from NCEH to such  Ascendant  Indemnified  Party of its  election  to assume the
defense  thereof,  NCEH  shall be  responsible  for any legal or other  expenses
subsequently  incurred by the latter in  connection  with the  defense  thereof,
provided that if any Ascendant Indemnified Party shall have reasonably concluded
that  there  may be one or more  legal  defenses  available  to  such  Ascendant
Indemnified  Party that conflict in any material respect with those available to
NCEH, or that such Ascendant Claim involves or could have an effect upon matters
beyond the scope of the indemnity  agreement provided in this Section 6(b), NCEH
shall not have the right to assume the  defense of such action on behalf of such
Ascendant  Indemnified Party and NCEH shall reimburse such Ascendant Indemnified
Party and any person or entity controlling such Ascendant  Indemnified Party for
that portion of the reasonable fees and expenses of any counsel  retained by the
Ascendant  Indemnified Party that are reasonably  related to the matters covered
by the indemnity  agreement  provided in this Section 6(b).  NCEH shall not make
any settlement of any claim indemnified  against under this Section 6(b) without
the written consent of the Ascendant Indemnified Party or Parties, which consent
shall not be unreasonably withheld.

Section 7.   MISCELLANEOUS.

     7.1. SURVIVAL OF  REPRESENTATIONS.  The  representations and warranties and
covenants contained in this Agreement or in any certificate, instrument or other
writing delivered pursuant to this Agreement will survive this Agreement.

     7.2. SUCCESSORS AND ASSIGNS.  Neither this Agreement nor any of the rights,
interests or  obligations  provided by this Agreement will be assigned by any of
the parties (whether by operation of law or otherwise) without the prior written
consent of the other  parties  except  that NCEH shall be entitled to assign its
rights and obligations hereunder to any person or entity controlling, controlled
by or under  common  control  with NCEH  without  the consent of any other party
hereto.  Subject to the preceding sentence, this Agreement  will be binding upon
and inure to the benefit of the parties hereto and their  respective  successors
and permitted assigns.

     7.3. AMENDMENT. This Agreement may be amended by the execution and delivery
of a written instrument by or on behalf of Ascendant and NCEH.

                                       17

     7.4.  SEVERABILITY.  Whenever  possible,  each  provision of this Agreement
shall  be  interpreted  in  such  manner  as to be  effective  and  valid  under
applicable  law, but if any provision of this Agreement is held to be prohibited
by or invalid under  applicable law, such provision will be ineffective  only to
the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement.

     7.5.  COUNTERPARTS.   This  Agreement  may  be  executed  in  two  or  more
counterparts,   each  of  which  will  be  deemed  an  original,  but  all  such
counterparts  taken together will constitute one and the same  Agreement,  and a
photostatic or facsimile copy of an executed  counterpart  hereof shall be given
the same effect as the original.

     7.6. DESCRIPTIVE  HEADINGS.  The descriptive headings of this Agreement are
inserted for convenience only and will not constitute a part of this Agreement.

     7.7.  NOTICES.  Any notice,  request,  instruction  or other document to be
given  hereunder  will  be in  writing  and  delivered  personally  or  sent  by
registered or certified mail (postage prepaid) or by facsimile, according to the
instructions  set forth below.  Such notices will be deemed  given:  at the time
delivered by hand, if personally delivered; three business days after being sent
by  registered or certified  mail;  and at the time when receipt is confirmed by
the receiving facsimile machine if sent by facsimile:

if to NCEH, to:

New Century Equity Holdings Corp.
300 Crescent Court, Suite 1110
Dallas, TX  75201
Attention:  Steven J. Pully
Facsimile:  2140661-7475

if to Ascendant, to:

ACP Investments LP
1235 Westlakes Drive, Suite 130
Berwyn, PA  19312
Attention:  Gary Shugrue
Facsimile: 610 308-3392

or to such  other  address  or to the  attention  of such  other  party that the
recipient  party has specified by prior  written  notice to the sending party in
accordance with the preceding.

     7.8. ENTIRE AGREEMENT.  This Agreement, and the other documents referred to
herein  collectively  constitute  the entire  agreement  among the  parties  and
supersede   any  prior  and   contemporaneous   understandings,   agreements  or
representations  by or among the parties,  written or oral that may have related
in any way to the subject matter hereof.

     7.9. CONSTRUCTION. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent and no rule of
strict  construction  will be applied  against  any  party.  The use of the word
"including"  in this  Agreement  means  "including  without  limitation"  and is

                                       18

intended  by the  parties  to be by  way  of  example  rather  than  limitation.
References  and  definitions  in the plural shall refer to the singular and vice
versa as the context may require and  references  expressed  in any gender shall
refer to all genders as the context requires.

     7.10.  CONSENT  TO  JURISDICTION.  EACH OF THE  PARTIES  TO THIS  AGREEMENT
CONSENTS TO SUBMIT TO THE PERSONAL  JURISDICTION  OF ANY STATE OR FEDERAL  COURT
SITTING IN THE STATE OF TEXAS,  IN ANY ACTION OR  PROCEEDING  ARISING  OUT OF OR
RELATING TO THIS  AGREEMENT,  AGREES THAT ALL CLAIMS IN RESPECT OF THE ACTION OR
PROCEEDING  MAY BE HEARD AND  DETERMINED  IN ANY SUCH  COURT,  AND AGREES NOT TO
BRING ANY ACTION OR PROCEEDING  ARISING OUT OF OR RELATING TO THIS  AGREEMENT IN
ANY OTHER COURT.  EACH OF THE PARTIES TO THIS AGREEMENT  AGREES NOT TO ASSERT IN
ANY ACTION OR  PROCEEDING  ARISING OUT OF RELATING  TO THIS  AGREEMENT  THAT THE
VENUE  IS  IMPROPER,  AND  WAIVES  ANY  DEFENSE  OF  INCONVENIENT  FORUM  TO THE
MAINTENANCE  OF ANY ACTION OR PROCEEDING SO BROUGHT AND WAIVES ANY BOND,  SURETY
OR OTHER  SECURITY  THAT  MIGHT BE  REQUIRED  OF ANY OTHER  PARTY  WITH  RESPECT
THERETO.

     7.11. WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF
THE PARTIES  HERETO  HEREBY  WAIVES ITS  RESPECTIVE  RIGHT TO, AND AGREES NOT TO
ELECT, A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS AGREEMENT.

     7.12.  GOVERNING  LAW. THIS  AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,  WITHOUT GIVING EFFECT TO ANY
LAW OR RULE THAT WOULD CAUSE THE LAWS OF ANY  JURISDICTION  OTHER THAN THE STATE
OF DELAWARE TO BE APPLIED.

     7.13.  PUBLICITY.  Ascendant may publicize this transaction  promptly after
Closing by publishing a press release mutually  acceptable to the parties.  NCEH
shall have the right to make such disclosures  concerning this Agreement and the
Principals  Agreement as it determines in its sole  discretion to be appropriate
or necessary to comply with applicable law.

     7.14.  SCHEDULES.  The representations and warranties of Ascendant and NCEH
set  forth in this  Agreement  are made and  given  subject  to the  disclosures
contained in the Schedules.

                                       19

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly  executed by their  respective  authorized  officers as of the day and year
first above written.

ACP INVESTMENTS LP (D/B/A ASCENDANT CAPITAL PARTNERS)

By Ascendant Holdings, LLC, its General Partner

By: /s/ Gary E. Shugrue
    -------------------------------------------------
    Gary E. Shugrue, Member

NEW CENTURY EQUITY HOLDINGS CORP.

By: /s/ Steven J. Pully
    -------------------------------------------------
    Steven J. Pully, Chief Executive Officer

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