Document:

<PAGE>

EXHIBIT 4.50

THIS OPTION HAS BEEN ISSUED PRUSUANT TO EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND THE
QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS (THE "LAWS").
IT IS UNLAWFUL TO EXERCISE, SELL, PLEDGE OR OTHERWISE DISPOSE OF THIS OPTION,
OR ANY INTEREST THEREIN, OR RECEIVE ANY CONSIDERATION THEREFORE, IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND
QUALIFICATION UNDER THE LAWS, UNLESS EXEMPTIONS FROM SUCH REGISTRATION AND
QUALIFICATION REQUIREMENTS ARE AVAILABLE.

THIS OPTION MAY BE EXERCISED ONLY IN ACCORDANCE WITH THE TERMS OF THIS STOCK
OPTION AGREEMENT.

                             ----------------------

                              THE RiceX-TM- COMPANY

                      NON-STATUTORY STOCK OPTION AGREEMENT

         The RiceX-TM- Company, a Delaware corporation (the "Company"),
hereby grants TO Maria Gutierrez (the "Optionee"), an option (the "Option")
to purchase up to 3,000 shares ("Shares") of Common Stock, per value $.001,
of the Company (the "Common Stock") at an exercise price (the "Exercise
Price") equal to $.55 per share, which is equal to the fair market value of
the Company's Common Stock on the date of grant, in all respects subject to
the terms, definitions and provisions of this Non-Statutory Stock Option
Agreement (the "Agreement").

         1. NATURE OF THE OPTION. The Option is intended to be a nonstatutory
option and NOT an incentive stock option within the meaning of Section 422 of
the Internal Revenue Code of 1986, as amended (the "Code").

         2.  PAYMENT OF EXERCISE PRICE.

              (a) METHOD OF PAYMENT. Payment of the Exercise Price for shares
purchased upon exercise of the Option shall be made (i) by delivery to the
Company of cash or a check to the order of the Company in an amount equal to
the purchase price of such shares; (ii) subject to the consent of the
Company, by delivery to the Company of shares of Common Stock of the Company
then owned by the Optionee having a fair market value equal in amount to the
purchase price of such shares in accordance with Section 2(b); (iii) by any
other means approved by the Board of Directors and which is consistent with
applicable laws and regulations

(including, without limitation, the provisions of Rule 16b-3 under the
Securities Exchange Act of 1934 and Regulation T promulgated by the Federal
Reserve Board); or (iv) by any combination of such methods of payment.

                                       1
<PAGE>

       (b)    METHOD OF PAYMENT-PUBLIC MARKET. In the event there exists a
              public market for the Company's Common Stock on the date of
              exercise, payment of the exercise price may be made by surrender
              of shares of the Company's Common Stock. In this case payment
              shall be made as follows:

                  (i) Optionee shall deliver to the Secretary of the Company
a written notice which shall set forth the portion of the purchase price the
Optionee wishes to pay with Common Stock, and the number of shares of such
Common Stock the Optionee intends to surrender pursuant to exercise of this
Option, which shall be determined by dividing the aforementioned portion of
the purchase price by the average of the last reported bid and asked prices
per share of Common Stock of the Company, as reported in THE WALL STREET
JOURNAL, (or, if not so reported, as otherwise reported by the National
Association of Securities Dealers Automated Quotation (NASDAQ) System or, in
the event the Common Stock is listed on a national securities exchange, or on
the NASDAQ National Market System, NASDAQ Small-Cap Market or any successor
national market system, the closing price of Common Stock of the Company on
such exchange as reported in the WALL STREET JOURNAL), for the day on which
the notice of exercise is sent or delivered;

                  (ii) Fractional shares shall be disregarded and the
Optionee shall pay in cash an amount equal to such fraction multiplied by the
price determined under subparagraph (i) above;

                  (iii) The written notice shall be accompanied by a duly
endorsed blank stock power with respect to the number of Shares set forth in
the notice, and the certificate(s) representing said Shares shall be
delivered to the Company at its principal offices within three (3) working
days from the date of the notice of exercise;

                  (iv) The Optionee hereby authorizes and directs the
Secretary of the Company to transfer so many of the Shares represented by
such certificate(s) as are necessary to pay the purchase price in accordance
with the provisions herein;

                  (v) If any such transfer of Shares requires the consent of
the California Commissioner of Corporations or of some other agency under the
securities laws of any other state, or an opinion of counsel for the Company
or Optionee that such transfer may be effected under applicable Federal and
state securities laws, the time periods specified herein shall be extended
for such periods as the necessary request for consent to transfer is pending
before said Commissioner or other agency, or until counsel renders such an
opinion, as the case may be. All parties agree to cooperate in making such
request for transfer, or in obtaining such opinion of counsel, and no
transfer shall be effected without such consent or opinion if required by
law; and

                  (vi) Nothwithstanding any other provision herein, the
Optionee shall only be permitted to pay the purchase price with shares of the
Company's Common Stock owned by him as of the exercise date in the manner and
within the time periods allowed under Rule 16b-3 promulgated under the
Securities Exchange Act of 1934 as such regulation is presently constituted,
as it is amended from time to time, and as it is interpreted now or hereafter
by the

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<PAGE>

Securities and Exchange Commission and any such shares shall have been held
by the Optionee for not less than six (6) months.

       3.     EXERCISE OF OPTION. The Option shall vest and become exercisable
              during its term, subject to the provisions of Section 5 below, as
              follows:

               (a)  VESTING AND RIGHT TO EXERCISE.

                  (i) The Option hereby granted shall vest and become
exercisable as to 1/3 of the Shares subject to this Option annually,
commencing one year from the date of grant of the Option, until fully vested.

If there should occur a "change of control" of the Company, as defined below,
then the Option shall immediately vest and become exercisable in full. For
purposes of the foregoing provision, a "change in control" means the
occurrence of any of the following:

                           (A) any "person", as such term is used in Sections
13(d) and 14(d) of the Exchange Act of 1934, as amended (the "Exchange Act")
(other than the Company or its existing shareholders) is or becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company (or a successor to the
Company) representing 50% or more of the combined voting power of the then
outstanding securities of the Company or such successor;

                           (B) the dissolution of the Company or liquidation
of more than 50% or more in value of the assets of the Company, (ii) any
merger or reorganization of the Company whether or not another entity is the
survivor, (iii) a transaction (other than the initial public offering of
Company's shares) pursuant to which holders, as a group, of all of the shares
of the Company outstanding before the transaction, hold, as a group, less
than 50% of the combined voting power of the Company or any successor company
outstanding after the transaction, or (iv) any other event or series of
events which the board determines, in its discretion, would materially alter
the structure of the Company or its ownership.

                  (ii) In the event of the Optionee's death, disability or
other termination of employment prior to exercise, the exercisability of the
Option shall be governed by Section 5, below.

                  (iii) The Option may be exercised in whole or in part but
may not be exercised as to fractional shares.

               (b) METHOD OF EXERCISE. In order to exercise any portion of
the Option, the Optionee shall execute and deliver to the Chief Financial
Officer of the Company, the Notice of Exercise of Stock Option in the form
attached hereto as Exhibit A, together with the Consent of Spouse. The Notice
of Exercise must be accompanied by payment in full of the aggregate purchase
price for the Shares to be purchased in the type of consideration set forth
in Section 2. The Notice of Exercise may be delivered to the Company at any
time. The certificate(s) for the Shares as to which the Option has been
exercised shall be registered in the name of Optionee or his designee.

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<PAGE>

               (c) RESTRICTIONS ON EXERCISE. The Option may not be exercised
if the issuance of the Shares upon such exercise or the method of payment of
consideration for such Shares would constitute a violation of any applicable
Federal or state securities law or any other law or regulation. As a
condition to the exercise of the Option, the Company may require the Optionee
to make any representation or warranty to the company at the time of exercise
of the Option as in the opinion of legal counsel for the Company may be
required by any applicable law or regulation, including the execution and
delivery of an appropriate representation statement. The stock certificate
(s) for the Shares issued upon exercise of the Option may bear appropriate
legends restricting transfer.

               (d) DELIVERY OF CERTIFICATES. The Company shall deliver the
certificate(s) for the Shares issued upon exercise of the Option to the
Director as soon as is practicable; PROVIDED, HOWEVER, that if any law or
regulation requires the Company to take any action with respect to such
shares before the issuance thereof, including, without limitation, actions
taken pursuant to Section 6 below, then the date of delivery of such Shares
shall be extended for a period necessary to take such action.

         4. NON-TRANSFERABILITY OF OPTION. The Option may be exercised during
the lifetime of the Optionee only by the Optionee any may not be transferred
in any manner other than by will or by the laws of descent and distribution.
The terms of the Option shall be binding upon the executors, administrators,
heirs and successors of the Optionee.

         5. TERM OF THE OPTION. Except as otherwise provided in this
Agreement, to the extent not previously exercised, the right to exercise the
Option shall terminate on the tenth (10th) anniversary of the Date of Grant.
Notwithstanding the foregoing, if an Optionee ceases to be an employee of the
Company for any reason, except death and disability, he or she may, but only
within ninety (90) days after the date he or she ceases to be an employee of
the Company, exercise his or her Option to the extent that he or she was
entitled to exercise it at the date of such termination, and in the case of
the Optionee's death or disability, the Optionee (or the Administrator or
Executor or other Representative of the Optionee's Estate) may, but only
within one (1) year after the date he or she ceases to be an employee of the
Company due to death or disability, exercise his or her Option to the extent
that he or she was entitled to exercise it at the date of such termination;
PROVIDED, HOWEVER, that in no event may the Option be exercised after its ten
(10) year term has expired. To the extent that the Optionee was not entitled
to exercise an Option at the date of such termination, or if he or she does
not exercise such Option (which he or she was entitled to exercise) within
the time specified herein, the Option shall terminate.

         6. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION: OTHER ADJUSTMENTS.
Subject to any required action by the shareholders of the Company, the number
of Shares and the Exercise Price shall be proportionately adjusted for any
increase or decrease in the number of issued shares of common stock resulting
from a stock split, reverse stock split, combination, reclassification, the
payment of a stock dividend on the common stock or any other increase or
decrease in the number of shares of Common Stock of the Company effected
without the receipt of consideration by the Company; PROVIDED, HOWEVER, that
conversion of any convertible securities of the Company shall not be deemed
to have been "effected without receipt of consideration." Such adjustment
shall be made by the Board, whose determination in that respect shall be
final, binding and conclusive. Except as expressly provided herein, no issue
by the Company of

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shares of stock of any class, or securities convertible into shares of stock
of any class, shall affect, and not adjustment by reason thereof shall be
made with respect to, the number of Shares subject to, or the Exercise Price
of, this Option.

The Board may, if it so determines in the exercise of its sole discretion,
also make provision for adjusting the number of Shares, we well as the
Exercise Price, in the event that the Company effects one or more
reorganizations, recapitalizations, rights offerings, or other increases or
reductions of shares of its outstanding common stock, and in the event of the
Company being consolidated with or merged into any other corporation;
PROVIDED, however, that in no event shall the Optionee be adversely affected
by such adjustment.

The Board may, if it so determines in the exercise of its sole discretion,
also make provision for changing, modifying, amending or adjusting any of the
terms of this Option solely in order for the Company to perfect a significant
financing; provided, however, that in no event shall the Optionee be
adversely affected by such adjustment.

         7. RIGHTS OF SHAREHOLDER. Optionee shall have no rights as a
shareholder with respect to the Shares until the date of the issuance or the
transfer to the Optionee of the certificate(s) for such Shares and only after
the Exercise Price for such Shares has been paid in full.

         8. AMENDMENT. Except as set forth in Section 6, this Agreement may
not be amended without the written consent of the Optionee.

         9. INCOME TAX WITHHOLDING. The Optionee authorizes the Company to
withhold, in accordance with applicable law from any compensation payable to
him or her, any taxes required to be withheld by Federal, state or local laws
as a result of the exercise of this Option. Furthermore, in the event of any
determination that the Company has failed to withhold a sum sufficient to pay
all withholding taxes due in connection with the exercise of this Option, the
Optionee agrees to pay the Company the amount of such deficiency in cash
within five (5) days after receiving a written demand from the Company to do
so, whether or not Optionee is an employee or director of the Company at that
time.

         10.  INVESTMENT REPRESENTATIONS; LEGENDS.

                (a) REPRESENTATIONS. The Optionee represents, warrants and
covenants that:

                    (i) Any shares purchased upon exercise of this Option
shall be acquired for the Optionee's account for investment only, and not
with a view to, or for sale in connection with, any distribution of the
shares in violation of the Securities Act of 1933 (the "Securities Act"), or
any rule or regulation under the Securities Act.

                    (ii) The Optionee has had such opportunity as he or she
has deemed adequate to obtain from representatives of the Company such
information as is necessary to permit the Optionee to evaluate the merits and
risks of his or her investment in the Company.

                    (iii) The Optionee is able to bear the economic risk of
holding such shares acquired pursuant to the exercise of this option for an
indefinite period.

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<PAGE>

                    (iv) The Optionee understands that the Shares acquired
pursuant to the exercise of this option are not registered under the
Securities Act and are "restricted securities" within the meaning of Rule 144
under the Securities Act and may not be transferred, sold or otherwise
disposed of in the absence of an effective registration statement with
respect to the Shares filed and made effective under the Securities Act of
1933, or an opinion of counsel satisfactory to the Company to the effect that
registration under such Act is not required.

By making payment upon exercise of this option, the Optionee shall be deemed
to have reaffirmed, as of the date of such payment, the representations made
in this Section 10.

                  (b) LEGEND OF STOCK CERTIFICATE. All stock certificates
representing shares of Common Stock issued to the Optionee upon exercise of
this option shall have affixed thereto legend(s) substantially in the
following forms, in addition to any other legends required by applicable
state law:

                  "THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT
                  BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT
                  BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF IN THE ABSENCE
                  OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THE
                  SHARES EVIDENCED BY THIS CERTIFICATE, FILED AND MADE
                  EFFECTIVE UNDER THE SECURITIES ACT OF 1933, OR AN OPINION OF
                  COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT
                  REGISTRATION UNDER SUCH ACT IS NOT REQUIRED."

DATE OF GRANT:
               --------------

THE RiceX-TM- COMPANY

                                       By:
                                          -------------------------------------
                                          Daniel L. McPeak,
                                          Sr., Chief Executive Officer

                                       By:
                                          -------------------------------------
                                          Todd C. Crow, Chief Financial Officer

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<PAGE>

                  The Optionee acknowledges receipt of the Non-Statutory
Stock Option Agreement attached hereto and represents that he or she is
familiar with the terms and provisions thereof, and hereby accepts the Option
subject to all of the terms and provisions thereof. The Optionee hereby
agrees to accept as binding, conclusive and final all decisions or
interpretations of the Board of Directors of The RiceX-TM- Company upon any
questions arising under such Agreement.

Dated:
      --------------------

                                       OPTIONEE:

                                       ------------------------------------

                                CONSENT OF SPOUSE

         I, _________________________, spouse of the Optionee who executed
the Non-Statutory Stock Option Agreement attached hereto, hereby agree that
my spouse's interest in the shares of Common Stock of The RiceX-TM- Company
subject to said Agreement shall be irrevocably bound by the Agreement's
terms. I agree to accept as binding, conclusive and final all decisions or
interpretations of the Board of Directors of The RiceX-TM- Company upon any
questions arising under such Agreement. I further agree that my community
property interest in such Shares, if any, shall similarly be bound by said
Agreement and that such consent is binding upon my executors, administrators,
heirs and assigns. I agree to execute and deliver such documents as may be
necessary to carry out the intent of said Agreement and this consent.

Dated:
      --------------------

                                       Signature:
                                                 ------------------------------

                                       Print Name:
                                                  -----------------------------

                                       7
<PAGE>

                                    EXHIBIT A

To: THE RiceX-TM- Company
1241 Hawk's Flight Court
El Dorado Hills,  CA  95762

Subject: NOTICE OF EXERCISE OF STOCK OPTION

                  With respect to the stock option granted to the undersigned
by The RiceX-TM- Company, (the "Company") on ________________________, to
purchase an aggregate of _______________ shares of the Company's Common
Stock, this is official notice that the undersigned hereby elects to exercise
such option to purchase shares as follows:

                  NUMBER OF SHARES:
                                   -------------------

                  DATE OF PURCHASE:
                                   -------------------

                  MODE OF PAYMENT:                     (certified check or cash)
                                  --------------------

                  The shares should be issued as follows:

                  NAME:
                       --------------------------------

                  ADDRESS:
                          -----------------------------

                          -----------------------------

                  Signed:
                          -----------------------------

                  Dated:
                        -------------------------------

                           Please send this notice of exercise to:

                           The RiceX-TM- Company
                           1241 Hawk's Flight Court.
                           El Dorado Hills, CA  95762

                                       8

<PAGE>

Exhibit 4.50

SCHEDULE TO IDENTICAL DOCUMENTS FILED

<TABLE>
<CAPTION>

NAME                                      SHARES
<S>                                       <C>

Rukmini Cheruvanky                        12,000
Reddy Sastry Cherukuri                    12,000
Steven Holloman                           30,000
Terry Miller                              12,000
Edward Newton                             12,000
Tim Maerz                                  6,000
Mohammad Mazhar                           12,000
Charmaine Lynch                           12,000
Tom McCarthy                               6,000
David Maki                                 6,000
Ryan Minges                                6,000

</TABLE>

                                       9<PAGE>

EXHIBIT 4.51

THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS WARRANT HAS NOT BEEN
QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA
AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF
THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS
THE SALE OF SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102
OR 25106 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO
THIS WARRANT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING
OBTAINED, UNLESS THE SALE IS SO EXEMPT.

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR ANY STATE
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF ANY EFFECTIVE REGISTRATION STATEMENT AS TO
SUCH SECURITIES FILED UNDER THE ACT AND COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER HEREOF
THAT SUCH REGISTRATION IS NOT REQUIRED.

                        WARRANT TO PURCHASE CAPITAL STOCK

                                       OF

                                THE RICEX COMPANY

         This Warrant is entered into pursuant to the terms of the Agreement
between JDK & Associates, Inc. and The RiceX Company (the "Company"). The
Company hereby grants to JDK & Associates, Inc., or its permitted registered
assigns ("Registered Holder"), subject to the terms and conditions of this
Warrant, the right to purchase from the Company at any time after the date of
this Warrant and prior to the Expiration Date (as defined below) up to the
number of shares (subject to adjustment as set forth herein and rounded to
whole shares) of Warrant Stock (as defined below) at a purchase price per
share equal to the Purchase Price (as defined below) subject to adjustment as
provided herein, upon surrender of this Warrant at the principal office of
the Company together with a duly executed Subscription Form in the form
attached hereto as Exhibit 1 and simultaneous payment of the full Purchase
Price, as adjusted to the extent provided herein, in lawful money of the
United States of America.

        1. CERTAIN DEFINITIONS. The following terms shall have the meaning
set forth below:

<PAGE>

                1.1 BOARD. The "Board" means the Board of Directors of the
Company.

                1.2 COMPANY. The "Company" means The RiceX Company, a
Delaware corporation.

                1.3 EXPIRATION DATE. "Expiration Date" means 5:00 p.m.
Pacific Time on October 31, 2002, or, if earlier, the date and time
determined under Section 5.4 of this Warrant.

                1.4 ISSUE DATE. "Issue Date" means the date of this Warrant.

                1.5 PURCHASE PRICE. "Purchase Price" means seventy-five cents
($0.75) per share of Warrant Stock. The Purchase Price is subject to
adjustment, as provided herein.

                1.6 REGISTERED HOLDER. "Registered Holder" means JDK &
Associates, Inc. or its permitted registered assigns.

                1.7 SEC. "SEC" means the Securities Exchange Commission of
the United States of America.

                1.8 WARRANT. "Warrant" means this Warrant and Warrant(s)
delivered in substitution or exchange therefor, as provided herein.

                1.9 WARRANT STOCK. "Warrant Stock" means up to 50,000 shares
of the Common Stock of the Company and any other consideration issuable under
this Agreement upon exercise of this Warrant or any portion thereof. The
number and character of shares of Warrant Stock are subject to adjustment as
provided herein and the term "Warrant Stock" shall include stock and other
securities and property at any time receivable or issuable upon exercise of
this Warrant.

        2. EXERCISE. Subject to the terms of this Warrant and compliance with
all applicable securities laws, Registered Holder may exercise this Warrant
at any time, on any business day before the Expiration Date, for up to the
number of shares of Warrant Stock that is set forth in Section 1.9 above, by
surrendering this Warrant at the principal office of the Company at 1241
Hawks Flight Court, El Dorado Hills, California 95762, with a Subscription
Form in the form attached as Exhibit 1 hereto duly executed by the Registered
Holder, together with full payment in cash or check of the sum obtained by
multiplying (a) the number of shares of Warrant Stock the Registered Holder
desires to purchase by (b) the Purchase Price or adjusted Purchase Price
therefor, if applicable, as determined in accordance with the terms hereof.
Registered Holder may exercise this Warrant for less than the full number of
shares of Warrant Stock purchasable hereunder but must exercise this Warrant
in increments of at least ten percent (10%) of the initial shares of Warrant
Stock, as adjusted pursuant hereto, if the exercise is for less than all
remaining Warrant Stock then exercisable hereunder. Upon Registered Holder's
partial exercise, Registered Holder must surrender this Warrant, and the
Company shall issue to the Registered Holder a new Warrant of the same tenor
for

                                       2
<PAGE>

purchase of the number of remaining shares of Warrant Stock not purchased.
Registered Holder shall be deemed to have exercised this Warrant immediately
prior to the close of business on the date of its surrender for exercise as
provided above, and shall be treated for all purposes as the holder of record
of such shares as of the close of business on such date. As soon as
practicable on or after such date, the Company shall issue and deliver to the
Registered Holder or Holders a certificate or certificates for the number of
whole shares of Warrant Stock issuable upon such exercise, together with cash
in lieu of any fraction of a share equal to such fraction of the current fair
market value of one whole share of Warrant Stock as of the date of exercise,
as determined in good faith by the Company's Board. No fractional shares may
be issued upon any exercise of this Warrant.

         Upon exercise, in part or in whole, of this Warrant, certificates
representing the Warrant Shares shall bear a legend substantially similar to
the following:

                  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "ACT"), AND MAY NOT BE OFFERED OR SOLD EXCEPT (I) PURSUANT TO
                  AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, (II) TO THE
                  EXTENT APPLICABLE, PURSUANT TO RULE 144 UNDER THE ACT (OR ANY
                  SIMILAR RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF
                  SECURITIES), OR (III) UPON THE DELIVERY BY THE HOLDER TO THE
                  COMPANY OF AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO
                  THE ISSUER, STATING THAT AN EXEMPTION FROM REGISTRATION UNDER
                  SUCH ACT IS AVAILABLE.

        3. FULLY PAID SHARES. All shares of Warrant Stock the Company issues
upon exercise of this Warrant shall be validly issued, fully paid and
non-assessable.

        4. TRANSFER AND EXCHANGE. Subject to the terms of this Warrant and
compliance with all applicable securities laws, this Warrant and all rights
hereunder are transferable, in whole or in part, on the books of the Company
maintained for such purpose at the principal office of the Company referred
to above, by the Registered Holder hereof in person, or by duly authorized
attorney, upon Registered Holder's surrender of this Warrant properly
endorsed and upon payment of any necessary transfer tax or other governmental
charge imposed upon such transfer. Upon any partial transfer, the Company
shall issue and deliver to the Registered Holder a new Warrant or Warrants
with respect to the shares of Warrant Stock not so transferred. Until a
transfer of this Warrant is registered on the books of the Company, the
Company may treat the Registered Holder hereof as the owner for all purposes.
Notwithstanding the foregoing, this Warrant and the rights hereunder may not
be transferred unless such transfer (a) complies with all applicable
securities laws and the provisions of Section 11 hereof, and (b) effects the
transfer of the right to purchase at least five percent (5%) of the initial
shares of Warrant Stock, as adjusted, or the right to purchase all remaining

                                       3
<PAGE>

shares of Warrant Stock purchasable under this Warrant if the right to
purchase less than five percent (5%) of the initial shares of Warrant Stock
remains untransferred.

        5. ADJUSTMENT OF PURCHASE PRICE AND NUMBER OF SHARES. The number or
character of shares of Warrant Stock issuable upon exercise of this Warrant
and the Purchase Price therefor shall be adjusted to the extent provided
below upon occurrence of the following events:

                5.1 ADJUSTMENT FOR STOCK SPLITS, STOCK DIVIDENDS,
RECAPITALIZATION AND SIMILAR EVENTS. The Purchase Price of this Warrant and
the number of shares of Warrant Stock issuable upon exercise of this Warrant
shall each be proportionally adjusted to reflect any stock split, reverse
stock split, combination of shares, reclassification, recapitalization or
other similar event affecting the number of outstanding shares of the
Company's Stock. For example, if there should be a 2-for-1 stock split of the
Company's Stock, the Purchase Price of this Warrant shall be divided by two
(2) and the number of shares of Warrant Stock purchasable under this Warrant
shall be doubled. An adjustment under this Section 5.1 shall be effective at
the close of business on the date such event becomes effective.

                5.2 ADJUSTMENT FOR OTHER DIVIDENDS AND DISTRIBUTIONS. If the
Company shall make or issue, or shall fix a record date for the determination
of eligible holders entitled to receive, a dividend or other distribution
with respect to the Warrant Stock payable in securities of the Company, then,
and in each such case, the Registered Holder of this Warrant on exercise of
this Warrant at any time after the consummation, effective date or record
date of such event, shall receive, in addition to the shares of Warrant Stock
issuable on such exercise prior to such date, the securities or such other
securities of the Company to which such Registered Holder would have been
entitled upon such date if such Registered Holder had exercised this Warrant
immediately prior thereto (all subject to further adjustment as provided in
this Warrant).

                5.3 ADJUSTMENT FOR REORGANIZATION, CONSOLIDATION, MERGER. In
case of any reorganization of the Company (or any successor corporation, the
stock or other securities of which are at the time receivable on the exercise
of this Warrant), after the Issue Date, or in case, after such date, the
Company (or any other such successor corporation) shall consolidate all of
its assets to another corporation, then, and in each such case, the
Registered Holder of this Warrant, upon the exercise hereof (as provided in
Section 2) at any time after the consummation of such reorganization,
consolidation, merger, or conveyance, shall be entitled to receive, in lieu
of the stock or other securities and property receivable upon the exercise of
this Warrant prior to such consummation, the stock or other securities or
property to which such Registered Holder would have been entitled had
Registered Holder exercised this Warrant immediately prior thereto, all
subject to further adjustment as provided in this Section 5, and the
successor or purchasing corporation in such reorganization, consolidation,
merger or conveyance (if other than the Company) shall duly execute and
deliver to the Registered Holder a supplement hereto acknowledging such
corporation's obligations under this Warrant; and in each such case, the
terms of this Warrant shall be applicable

                                       4
<PAGE>

to the shares of stock or other securities or property receivable upon the
exercise of this Warrant after such consummation.

                5.4 CONVERSION OF WARRANT STOCK. In case all the authorized
Warrant Stock of the Company is converted, pursuant to the Company's
Certificate of Incorporation, into other securities or property, or the
Warrant Stock otherwise ceases to exist, then, in such case, the Registered
Holder of this Warrant, on exercise hereof at any time after the date on
which the Warrant Stock is so converted or ceases to exist (the "Termination
Date") shall receive, in lieu of the number of Shares of Warrant Stock that
would have been issuable upon such exercise immediately prior to the
Termination Date (the "Former Issuable Number of Shares of Warrant Stock"),
the stock and other securities and property to which such Registered Holder
would have been entitled to receive upon the Termination Date if such
Registered Holder had exercised this Warrant with respect to the Former
Issuable Number of Shares of Warrant Stock immediately prior to the
Termination Date (all subject to further adjustment as provided in this
Warrant).

                5.5 ADJUSTMENTS TO PURCHASE PRICE. Although an adjustment to
the Purchase Price may occur pursuant to this Section 5, the aggregate
purchase price for the total number of shares of Warrant Stock purchasable
hereunder (as adjusted) shall remain the same.

        6. NO IMPAIRMENT. The Company may not, by amendment of its
Certificate of Incorporation or Bylaws, or through reorganization,
consolidation, merger, dissolution, issue or sale of securities, sale of
assets or any other voluntary action, willfully avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but shall at
all times in good faith assist in the carrying out of all such terms and in
the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Registered Holder against impairment. Without
limiting the generality of the foregoing, the Company (a) will not set nor
increase the par value (if any par value exists) of any shares of stock
issuable upon the exercise of this Warrant above the amount payable therefor
upon such exercise, and (b) will take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully
paid and non-assessable shares of Warrant Stock upon the exercise of this
Warrant.

        7. CERTIFICATE AS TO ADJUSTMENTS. In each case of any adjustment in
either the Purchase Price or in the number of share of Warrant Stock, or
other stock, securities or property receivable on the exercise of this
Warrant, the Treasurer of the Company shall, upon request from Registered
Holder, compute such adjustment in accordance with the terms of this Warrant
and prepare a certificate setting forth such adjustment and showing in detail
the facts upon which such adjustment is based, including a statement of the
adjusted Purchase Price. Thereafter, the Company shall cause copies of such
certificate to be mailed (by first class mail, postage prepaid) to the
Registered Holder.

        8. NOTICES OF RECORD DATE. In case:

                                       5
<PAGE>

                     (a) The Company shall take a record of the holders of
its Warrant Stock for the purpose of entitling them to receive any dividend
or other distribution; or

                     (b) Of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or
merger of the Company with or into another corporation, or any conveyance of
all or substantially all of the assets of the Company to another corporation
in which holders of the Company's stock are to receive stock, securities,
cash or property of another corporation; or

                     (c) Of any voluntary dissolution, liquidation or
winding-up of the Company; or

                     (d) Any redemption or conversion into Common Stock of
all outstanding Warrant Stock.

then, and in each such case, the Company shall mail or cause to be mailed to
the Registered Holder of this Warrant a notice specifying, as the case may
be, (a) the date on which a record is to be taken for the purpose of such
dividend or distribution, and stating the amount and character of such
dividend or distribution, or (b) the date on which such reorganization,
reclassification, consolidation, merger, conveyance, dissolution,
liquidation, winding-up, redemption or conversion is to take place, and the
time, if any is to be fixed, as of which the holders of record of Warrant
Stock shall be entitled to exchange their shares of Warrant Stock or Common
Stock (or such other stock or securities) for securities or other property
deliverable upon such reorganization, reclassification, consolidation,
merger, conveyance, dissolution, liquidation or winding-up. Such notice shall
be mailed at least ten (10) days prior to the effective or record date
therein specified, as applicable. Failure to provide notice under this
Section 8 or any defect therein shall not affect the validity of any action
taken in connection with such dividend, distribution, reorganization,
reclassification, consolidation, merger, conveyance, dissolution,
liquidation, winding-up, redemption or conversion.

        9. LOSS OR MUTILATION. Upon Registered Holder's delivery to the
Company of evidence reasonably satisfactory to the Company of the ownership,
and the loss, theft, destruction or mutilation, of this Warrant, and of
indemnity reasonably satisfactory to the Company, and (in the case of
mutilation) upon surrender and cancellation of this Warrant, the Company
shall execute and deliver to the Registered Holder in lieu thereof a new
Warrant of like tenor.

        10. RESERVATION OF WARRANT STOCK. If at any time the number of
authorized but unissued shares the Company's Common Stock or other securities
shall not be sufficient to effect the exercise of this Warrant, the Company
shall take such corporate action as may, in the opinion of its counsel, be
necessary to increase its authorized but unissued shares of Common Stock or
other securities to such number of shares of Common Stock or other securities
as shall be sufficient for such purpose.

        11. RESTRICTIONS ON TRANSFER.

                                       6
<PAGE>

                11.1 ACKNOWLEDGMENT, REPRESENTATION AND WARRANTIES OF
REGISTERED HOLDER. The Registered Holder understands and acknowledge that
neither this Warrant nor the shares of Warrant Stock have been registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws. As a condition to the issuance of this Warrant and to its
exercise the Registered Holder hereby represents and warrants to the Company
that:

                     (a) The Warrant and, if applicable, the shares of
Warrant Stock (collectively, the "Securities") have been acquired by the
Registered Holder for investment and not with a view to the sale or other
distribution thereof within the meaning of the Act and the Registered Holder
has no present intention of selling or otherwise disposing of all or any
portion of the Securities.

                     (b) The Registered Holder has acquired the Securities
for the Registered Holder's own account only and no one else has any
beneficial ownership in the Securities.

                     (c) The Registered Holder is capable of evaluating the
merits and risks of any investment in the Securities, is financially capable
of bearing a total loss of this investment and has either (i) a preexisting
personal or business relationship with the Company or its principals or (ii)
by reason of the Registered Holder's business or financial experience, has
the capacity to protect his or its own interest in connection with this
investment.

                     (d) The Registered Holder has had access to all
information regarding the Company, its present and prospective business,
assets, liabilities and financial condition that the Registered Holder
considers important to making the decision to acquire the Securities and has
had ample opportunity to ask questions of and receive answers from the
Company's representatives concerning an investment in the Securities and to
obtain any and all documents requested in order to supplement or verify any
of the information supplied.

                     (e) The Registered Holder understands that the
Securities shall be deemed restricted securities under the Act and may not be
resold unless they are registered under the Act and any applicable state
securities law, or in the opinion of counsel in form and substance
satisfactory to the Company, an exemption from such registration is available.

                     (f) The Registered Holder is aware of Rule 144
promulgated under the Act, which rule provides, in substance, that (i) after
one year from the date restricted securities have been purchased and fully
paid for, a holder may transfer restricted securities provided certain
conditions are met, e.g., certain public information is available about the
Company, and specific limitations on the amount of shares which can be sold
within certain periods and the manner in which such shares must be sold are
complied with, and (ii) after two years from the date the Securities have
been purchased and fully paid for, holders who are not "affiliates" of the
Company may sell restricted securities without satisfying such conditions.

                                       7
<PAGE>

                     (g) The Registered Holder further understands that if
the requirements of Rule 144 are not met, registration under the Act,
compliance with Regulation A, or some other registration exemption will be
required for any disposition of the Securities; and that, although Rule 144
is not exclusive, the SEC has expressed its opinion that persons proposing to
sell restricted securities other than in a registered offering or other than
pursuant to Rule 144 will have a substantial burden of proof in establishing
that an exemption from registration is available for such offers or sales and
such persons and the brokers who participate in the transactions do so at
their own risk.

                11.2 SALE OR TRANSFER OF WARRANT STOCK. The Registered Holder
of this Warrant, by acceptance hereof, agrees that, absent an effective
registration statement filed with the SEC under the Act, covering the
disposition or sale of this Warrant or the Warrant Stock issued or issuable
upon exercise hereof, such Registered Holder will not sell or transfer any or
all of this Warrant or such Warrant Stock, as the case may be, without first
providing the Company with an opinion of counsel satisfactory to the Company
to the effect that such sale or transfer will be exempt from the registration
and prospectus delivery requirements of the Act, and such Registered Holder
consents to the Company making a notation on its records, or giving
instructions to any transfer agent of this Warrant, or such Warrant Stock, in
order to implement this restriction on transfer. The share certificates
issued upon exercise of this Warrant shall bear legends referring to the
restrictions on transfer set forth in this Section 11. As a condition to the
transfer of this Warrant or transfer of the shares issuable on exercise
hereof, any permitted transferee must execute and deliver to the Company
representations and warranties similar to those set forth in this Section 11.

        12. GENERAL PROVISIONS.

                12.1 NO RIGHTS OR LIABILITIES AS SHAREHOLDER. This Warrant
does not by itself entitle the Registered Holder to any voting rights or
other rights as a shareholder of the Company. In the absence of affirmative
action by Registered Holder to purchase Warrant Stock by exercise of this
Warrant, no provisions of this Warrant, and no enumeration herein of the
rights or privileges of the Registered Holder shall cause such Registered
Holder to be a shareholder of the Company for any purpose by virtue hereof.

                12.2 AMENDMENT. The provisions of this Agreement may be
modified at any time by agreement of the parties. Any such agreement
hereafter made shall be ineffective to modify this Agreement in any respect
unless in writing and signed by the parties against whom enforcement of the
modification or discharge is sought.

                12.3 NOTICES. Any notice under this Agreement shall be in
writing, and any written notice or other document shall be deemed to have
been duly given (i) on the date of personal service on the parties, (ii) on
the third business day after mailing, if the document is mailed by registered
or certified mail, (iii) one day after being sent by professional or
overnight courier or messenger service guaranteeing one-day delivery, with
receipt confirmed by the courier, or (iv) on the date of transmission if sent
by telegram, telex, telecopy or other means of electronic transmission
resulting in written

                                       8
<PAGE>

copies, with receipt confirmed. Any such notice shall be delivered or
addressed to the parties at the addresses set forth below or at the most
recent address specified by the addressee through written notice under this
provision:

If to the Company:

Daniel McPeak, Chief Executive Officer
The RiceX Company
1241 Hawk's Flight Court, Suite 103
El Dorado Hills, CA 95762
Fax: (916) 933-3232

With a copy to:

Crosby, Heafey, Roach & May
700 S. Flower St., Suite 2200
Los Angeles, CA  90017
Attn: Mr. Richard Lasater

If to the Registered Holder:

JDK & Associates, Inc.
19800 MacArthur Blvd., Suite 880
Irvine, CA  92612
Attn:  Joseph Kowal

With a copy to:

------------------------------
------------------------------
------------------------------
------------------------------
Attn:
     -------------------------

Failure to conform to the requirement that mailings be done by registered or
certified mail shall not defeat the effectiveness of notice actually received
by the addressee.

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

                12.5 HEADINGS. The headings in this Warrant are for purposes
of convenience and reference only, and shall not be deemed to constitute a
part hereof.

                                       9
<PAGE>

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

                12.7 INTEGRATION. This Agreement constitutes the entire
agreement between the Company and the Registered Holder with respect to the
subject matter hereof. Any previous agreement between the Company and the
Registered Holder is superseded by this Agreement. Subject to the exceptions
specifically set forth in this Agreement, the terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
heirs, successors, administrators, executors and assigns of the parties
hereto.

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

                12.9 SEVERABILITY. If any provision of this Agreement is
adjudicated by a court of competent jurisdiction to be invalid or
unenforceable, the remainder of the Agreement which can be given full force
and effect without the invalid provision shall continue in full force and
effect and shall in no way be impaired or invalidated.

         Dated: As of November 1, 1999

                                       COMPANY

                                       The RiceX Company, a Delaware corporation

                                       By:
                                          --------------------------------------

                                       Its:
                                          --------------------------------------

                                       REGISTERED HOLDER

                                       JDK & Associates, Inc.

                                       By:
                                          --------------------------------------

                                       Its:
                                          --------------------------------------

                                       10
<PAGE>

                                    EXHIBIT 1
                                SUBSCRIPTION FORM

                 (To be executed only upon exercise of Warrant)

         Theundersigned Registered Holder of this Warrant irrevocably
exercises this Warrant for the purchase of ___________ shares of ___________
Stock of ___________, purchasable with this Warrant, and herewith makes
payment therefor, all at the price and on the terms and conditions specified
in this Warrant. The representations and warranties of the undersigned
contained in Section 11 of this Warrant continue to be true and complete on
the date hereof.

         Dated:
                ----------             --------------------------------------
                                       (Signature of Registered Holder)

                                       --------------------------------------
                                       (Street Address)

                                       --------------------------------------
                                       (City)             (State)    (Zip)

<PAGE>

                               FORM OF ASSIGNMENT

         FOR VALUE RECEIVED the undersigned Registered Holder of this Warrant
hereby sells, assigns and transfers unto the Assignee named below in
accordance with the terms and conditions of the Warrant, all of the rights of
the undersigned under the within Warrant, with respect to the number of
shares of Warrant Stock set forth below:

<TABLE>
<CAPTION>
        NAME OF ASSIGNEE                 ADDRESS                 NO. OF SHARES
<S>                                    <C>                       <C>

</TABLE>

and does hereby irrevocably constitute and appoint ______________________
Attorney to make such transfer on the books of ___________ maintained for the
purpose, with full power of substitution in the premises.

         Dated:                     BY:
                ----------             --------------------------------------
                                               (Registered Holder)

                                    Name:
                                    Title:

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