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                                                                   EXHIBIT 4.45

THIS OPTION HAS BEEN ISSUED PURSUANT 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 THEREFOR, 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 COMPANY

                       NONSTATUTORY STOCK OPTION AGREEMENT

         The RiceX Company, a Delaware corporation (the "Company"), hereby
grants to Daniel L. McPeak, Sr. (the "Optionee"), an option (the "Option") to
purchase a total of 2,000,000 shares of common stock, par value $.001, of the
Company (the "Common Stock") at an exercise price (the "Exercise Price") equal
to $0.79 per share, which is equal to the fair market value of the Company's
Common Stock on the date of the grant, in all respects subject to the terms,
definitions and provisions of this Nonstatutory 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); or, (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.

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                 (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 the 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
Small-Cap Market of 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);

                     (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)  Notwithstanding any other provisions 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

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by the Securities and Exchange Commission and any such shares 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 within respect to 1,000,000 Shares of the Option on the date hereof,
and shall vest and become exercisable with respect to the remaining 1,000,000 of
the Shares on the first anniversary hereof.

         Subject to the provisions of subparagraph (ii) and (iii) below, the
Optionee can exercise any portion of the Option which has vested until the
expiration of the Option term.

         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 Securities Exchange Act of 1934, as emended (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) or 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 the 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
Optionee determines, in his 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

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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.

                 (c) RESTRICTIONS ON EXERCISE. This 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 Optionee
as soon as is practicable; provided, however, that if any law or regulation
requires the Company to take 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. This Option may be exercised
during the lifetime of the Optionee only by the Optionee and may not be
transferred in any manner other than by will or by the laws of descent and
distribution. The terms of this 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 the 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,

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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 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 shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect and no 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, as 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.

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                     (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 the
holding of such shares acquired pursuant to the exercise of this Option for an
indefinite period.

                     (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) LEGENDS OF STOCK CERTIFICATE. All stock certificates
representing share 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."

         IN WITNESS WHEREOF, the parties have executed this Agreement as of
April 1, 2000.

                                     THE RICEX COMPANY
                                     a Delaware corporation
                                     (the "Company")

                                     By: /s/ TODD C. CROW
                                        ------------------------------
                                     Todd Crow, Vice President and CFO

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         The Optionee acknowledges receipt of a copy of the Plan, and represents
that he or she is familiar with the terms and provisions thereof, and hereby
accepts this 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 Company upon any
questions arising under such Agreement.

Dated:  April 1, 2000

                                     /s/ DANIEL L. McPEAK, SR.
                                     ---------------------------------------
                                     Daniel L. McPeak, Sr. ("Optionee")

CONSENT OF SPOUSE

         I, Patricia McPeak, spouse of the Optionee who executed the foregoing
Agreement attached hereto, hereby agree that my spouse's interest in the shares
of Common Stock of The RiceX 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 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:  April 1, 2000

                                     /s/ PATRICIA McPEAK
                                     ---------------------------------------
                                     Patricia McPeak<PAGE>

                                                                   EXHIBIT 4.46

                                 ATTACHMENT VII

THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON
EXERCISE THEREOF 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 RULES 701 AND 144 UNDER SUCH 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
COUNSEL FOR THE ISSUER, STATING THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH
ACT IS AVAILABLE. THE HOLDER HEREOF MAY NOT ENGAGE IN HEDGING TRANSACTIONS WITH
REGARD TO SUCH SECURITIES UNLESS IN COMPLIANCE WITH THE ACT. THE TRANSFER OR
EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS RESTRICTED IN
ACCORDANCE HEREWITH.

                            Warrant to Purchase up to
                        2,600,000 Shares of Common Stock
                              of The RiceX Company

         WHEREAS, reference is made to that certain Definitive Agreement, dated
of even date herewith, pursuant to which The RiceX Company, a Delaware
corporation (the "Company"), offered to Intermark Partners Strategic Managment,
an Indiana Limited Liability Company ("IPSM" or "Investor") the option to
purchase as follows: (a) a Warrant to purchase two million six hundred thousand
(2,600,000) Shares of Class I Shares of Common Stock, (b) a Warrant to purchase
up to one million three hundred thousand (1,300,000) Shares of Class II
Restricted Common Stock, and (c) a Warrant to purchase up to one million nine
hundred fifty thousand (1,950,000) Shares of Class III Restricted Common Stock;
and

         WHEREAS, this Warrant shall represent the Class I Warrant ("Warrant")
to be granted to IPSM pursuant to the terms of the Definitive Agreement and the
exercise of its option to purchase.

         NOW, THEREFORE, the Company and IPSM agree as follows:

         1.  Grant.

             On the terms and subject to the conditions set forth herein,
Investor is hereby granted the right to purchase, at any time during the
Exercise Period (as hereinafter defined), up to two million six hundred thousand
(2,600,000) Class I Shares of Common Stock (the "Warrant Shares") of the Company
at the Exercise Price (as defined below and as subject to adjustment as provided
in Article 5 hereof).

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         2.  Exercise of Warrant.

             (a) Exercise Period. This Warrant is exercisable at any time during
the five (5) year period commencing on the date hereof (the "Exercise Period").

             (b) Cash Exercise. The Warrant is exercisable at a price of per
Warrant Share equal to the Exercise Price (as hereinafter defined) payable in
cash or by check to the order of the Company, or any combination of cash or
check, subject to adjustment as provided in Article 5 hereof. Upon surrender of
this Warrant with the annexed Form of Election to Purchase duly executed,
together with payment of the Exercise Price for the Warrant Shares purchased, at
the Company's principal offices, Investor (or other registered holder of this
Warrant (the "Holder") shall be entitled to receive a certificate or
certificates for the Warrant Shares so purchased. The purchase rights
represented by this Warrant are exercisable at the option of the Holder, in
whole or in part (but not as to fractional Warrant Shares). In the case of the
purchase of less than all the Warrant Shares purchasable under this Warrant, the
Company shall cancel said Warrant upon the surrender thereof and shall execute
and deliver a new Warrant of like tenor for the balance of the Warrant Shares
purchasable thereunder.

             (c) Cashless Exercise. At any time during the Exercise Period, the
Holder may, at its option, exchange this Warrant, in whole or in part (a
"Warrant Exchange"), into the number of shares of Common Stock determined in
accordance with this Section 2.3, by surrendering this Warrant at the principal
office of the Company accompanied by a notice stating such Holder's intent to
effect such exchange, the number of Warrant Shares to be exchanged and the date
on which the Holder requests that such Warrant Exchange occur (the "Notice of
Exchange"). The Warrant Exchange shall take place on the date specified in the
Notice of Exchange or, if later, the date the Notice of Exchange is received by
the Company (the "Exchange Date"). Certificates for the shares of Common Stock
issuable upon such Warrant Exchange and, if applicable, a new Warrant of like
tenor evidencing the balance of the Warrant Shares remaining subject to this
Warrant, shall be issued as of the Exchange Date and delivered to the Holder
within seven (7) days following the Exchange Date. In connection with any
Warrant Exchange, this Warrant shall represent the right to subscribe for and
acquire the number of Warrant Shares (rounded to the next highest integer) equal
to (i) the number of Warrant Shares specified by the Holder in its Notice of
Exchange (the "Total Number") less (ii) the number of Warrant Shares equal to
the quotient obtained by dividing (A) the product of the Total Number and the
then-current Exercise Price by (B) the market value of a share of Common Stock
on the Exchange Date, as determined by the closing price or closing bid price of
the Company's Common Stock as reported by the Over-the-Counter Bulletin Board
Market (the "OTC"), the National Association of Securities Dealers Automated
Quotation System ("NASDAQ") or by a national exchange or, if the Common Stock is
not listed on the OTC, on NASDAQ or on an exchange, as determined in good faith
by the Board of the Directors of the Company. Warrants exchanged for shares of
Common Stock shall no longer entitle the holder thereof to purchase Warrant
Shares.

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             (d) Issuance of Certificates. Upon the exercise of this Warrant
pursuant to Section 2.b or Section 2.c above, the issuance of certificates
representing the Warrant Shares purchased shall be made forthwith without charge
to the Holder thereof including, without limitation, any tax which may be
payable in respect of the issuance thereof, and such certificates shall (subject
to the provisions of Article 3 hereof) be issued in the name of, or in such
names as may be directed by, the Holder thereof; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the issuance and delivery of any such certificates in a
name other than that of the Holder and the Company shall not be required to
issue or deliver such certificates unless or until the person or persons
requesting the issuance thereof shall have paid to the Company the amount of
such tax or shall have established to the satisfaction of the Company that such
tax has been paid.

             (i) Upon exercise, in whole or in part, 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.  Securities Act Restrictions.

             Investor, by his acceptance hereof, covenants and agrees that this
Warrant is being acquired as an investment and not with a view to the
distribution thereof, and that neither this Warrant nor, if exercised, any
Warrant Shares, may 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.

         4.  Exercise Price and Adjusted Exercise Price.

             Subject to adjustment as set forth in Section 5, the exercise price
of the Warrant Shares (the "Exercise Price") shall be equal to $.70 per Warrant
Share.

         5.  Adjustments of Exercise Price and Number of Warrant Shares.

             (a) Stock Split, Stock Dividend, Subdivision and Combination. In
case the Company shall at any time subdivide or combine the outstanding shares
of Common Stock (including by way of a stock dividend), the Exercise Price shall
forthwith be proportionately

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decreased in the case of subdivision or increased in the case of combination.
Upon each adjustment of the Exercise Price pursuant to the provisions of this
Section 5. 1, the number of Warrant Shares issuable upon the exercise of this
Warrant shall be adjusted to the nearest full Warrant Share by multiplying a
number equal to the Exercise Price in effect immediately prior to such
adjustment by the number of Warrant Shares issuable upon exercise of the Warrant
immediately prior to such adjustment and dividing the product so obtained by the
adjusted Exercise Price.

             (b) Reclassification, Consolidation, Merger, etc. In case of any
reclassification or change of the outstanding shares of Common Stock (other than
a change in par value to no par value, or from no par value to par value, or as
a result of a subdivision or combination), or in the case of any consolidation
of the Company with, or merger of the Company into, another corporation (other
than a consolidation or merger in which the Company is the surviving corporation
and which does not result in any reclassification or change of the outstanding
shares of Common Stock, except a change as a result of a subdivision or
combination of such shares or a change in par value, as aforesaid), or in the
case of a sale or conveyance to another corporation of the property of the
Company as an entirety, the Holder shall thereafter have the right to purchase
the kind and number of shares of stock and other securities and property
receivable upon such reclassification, change, consolidation, merger, sale or
conveyance as if the Holder were the owners of the Warrant Shares underlying the
Warrant at a price equal to the product of (i) the number of shares of Common
Stock issuable upon conversion of the Warrant Shares and (ii) the Exercise Price
prior to the record date for such reclassification, change, consolidation,
merger, sale or conveyance as if such Holder had exercised the Warrant.

             (c) Redemption of Warrant; Redemption of Warrant Shares.
Notwithstanding anything to the contrary contained in the Warrant or elsewhere,
the Warrant cannot be redeemed by the Company under any circumstances.

             (d) Dividends and Other Distributions with Respect to Outstanding
Securities. In the event that the Company shall at any time prior to the
exercise of the Warrant declare a dividend (other than a dividend consisting
solely of shares of Common Stock (which shall be governed by Section 5. 1) or a
cash dividend or distribution payable out of current or retained earnings) or
otherwise distribute to its shareholders any monies, assets, property, rights,
evidences of indebtedness, securities (other than shares of Common Stock),
whether issued by the Company or by another person or entity, or any other thing
of value, the Holder of the Warrant shall thereafter be entitled, in addition to
the securities receivable upon the exercise thereof, to receive, upon the
exercise of such Warrant, the same monies, property, assets, rights, evidences
of indebtedness, securities or any other thing of value that he would have been
entitled to receive at the time of such dividend or distribution. At the time of
any such dividend or distribution, the Company shall make appropriate reserves
to ensure the timely performance of the provisions of this Section 5.4.

             (e) Subscription Rights for Shares of Common Stock or Other
Securities. In the case that the Company or an affiliate of the Company shall at
any time after the date hereof

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and prior to the exercise of the Warrant issue any rights to subscribe for
shares of Common Stock or any other securities of the Company or of such
affiliate to all the shareholders of the Company, the Holder of the unexercised
Warrant shall be entitled, in addition to the securities receivable upon the
exercise of the Warrant, to receive such rights at the time such rights are
distributed to the other shareholders of the Company.

         6.  Exchange and Replacement of Warrant Certificates. This Warrant is
exchangeable without expense, upon the surrender hereof by the registered Holder
at the principal executive office of the Company, for a new Warrant Certificate
of like tenor and date representing in the aggregate the right to purchase the
same number of Warrant Shares in such denominations as shall be designated by
the Holder thereof at the time of such surrender. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of the Warrant Certificate, and, in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it, and
reimbursement to the Company of all reasonable expenses incidental thereto, and
upon surrender and cancellation of the Warrant, if mutilated, the Company will
make and deliver a new Warrant Certificate of like tenor, in lieu thereof.

         7.  Elimination of Fractional Interests. The Company shall not be
required to issue certificates representing fractions of Warrant Shares upon the
exercise of this Warrant, nor shall it be required to issue scrip or pay cash in
lieu of fractional interests, it being the intent of the parties that all
fractional interests shall be eliminated by rounding any fraction up to the
nearest whole number of Warrant Shares.

         8.  Reservation of Securities. The Company shall at all times reserve
and keep available out of its authorized shares of Common Stock, solely for the
purpose of issuance upon the exercise of the Warrant, such number of shares of
Common Stock (or other securities) as shall be issuable upon such exercise. The
Company covenants and agrees that, upon exercise of the Warrant and payment of
the Exercise Price therefor, all shares of Common Stock issuable upon such
exercise shall be duly and validly issued, fully paid, non-assessable and not
subject to the preemptive rights of any shareholder.

         9.  Notices to Warrant Holder. If, at any time prior to the expiration
or exercise of this Warrant, any of the following events shall occur:

             (a) the Company shall take a record of the holders of its shares of
Common Stock for the purpose of entitling them to receive a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution
payable otherwise than out of current or retained earnings, as indicated by the
accounting treatment of such dividend or distribution on the books of the
Company; or

             (b) the Company shall offer to all the holders of its Common Stock
any additional shares of capital stock of the Company or securities convertible
into or exchangeable for shares of capital stock of the Company, or any option,
right or warrant to subscribe therefore; or

                                       5

<PAGE>

             (c) a dissolution, liquidation or winding up of the Company(other
than in connection with a consolidation or merger) or a sale of all or
substantially all of its property, assets and business as an entirety shall be
proposed; then, in any one or more of said events, the Company shall give
written notice to the Holder of such event at least fifteen (15) days prior to
the date fixed as a record date or the date of closing the transfer books for
the determination of the shareholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, options or
warrants, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale. Such notice shall specify such record date or the date of closing
the transfer books, as the case may be. Failure to give such notice or any
defect therein shall not affect the validity of any action taken in connection
with the declaration or payment of any such dividend or distribution, or the
issuance of any convertible or exchangeable securities or subscription rights,
options or warrants, or any proposed dissolution, liquidation, winding up or
sale.

         10. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been duly made when
delivered, or mailed by registered or certified mail, return receipt requested:

             (a) If to the registered Holder of the Warrant, to the address of
such Holder as shown on the books of the Company; or

             (b) If to the Company, to the address set forth on the signature
page of this Warrant or to such other address as the Company may designate by
notice to the Holder.

         11. Successors. All the covenants and provisions of this Agreement by
or for the benefit of the Company and the Holder inure to the benefit of their
respective successors and assigns hereunder.

         12. Governing Law. This Warrant shall be deemed to be a contract made
under the laws of the State of California and for all purposes shall be
construed in accordance with the laws of said State.

         13. Counterparts. This Warrant may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and such counterparts shall together constitute but one and the
same instrument.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed.

                                       THE RICEX COMPANY

Dated:  October 2, 2000                      By: /s/ DANIEL L. McPEAK, SR.
                                             Daniel L. McPeak
                                             Chairman of the Board and
                                             Chief Executive Officer

                                       6

<PAGE>

ACCEPTED BY AND AGREED TO:

INTERMARK PARTNERS STRATEGIC MANAGEMENT, LLC

By: /s/ ALAN R. KIMBELL
    Alan R. Kimbell, Member

                                       7

<PAGE>

                              ELECTION TO PURCHASE

         The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant, to purchase       shares of Common Stock of The
RiceX Company (or its successor) and herewith tenders in payment for such shares
cash or a check payable to the order of The RiceX Company in the amount of $ _ ,
all in accordance with the terms hereof. The undersigned requests that a
certificate for such shares be registered in the name of whose address is
and that such Certificate be delivered to                  , whose address is .

Dated:                       Signature:

                             (Signature must conform in all respects to name of
                              holder as specified on the face of the Warrant
                              Certificate.)

                             (Insert Social Security or Other Identifying Number
                              of Holder)

                       FORM OF ASSIGNMENT

(To be executed by the registered holder
it such holder desires to transfer the Warrant Certificate.)

         FOR VALUE RECEIVED             hereby sells, assigns and transfers unto
(Please print name and address of transferee) this Warrant [or a portion of this
Warrant equal to shares of Common Stock], together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint           ,
Attorney, to transfer the within Warrant Certificate on the books of the
within-named Company, with full power of substitution.

Dated:                       Signature:

                             (Signature must conform in all respects to name of
                              holder as specified on the face of the Warrant
                              Certificate)

                                       8

<PAGE>

                             (Insert Social Security or Other Identifying
                              Number of Assignee)

                                       9

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