Document:

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EXHIBIT 4.48

                              STOCKHOLDER AGREEMENT
                                  by and among
                                PATRICIA McPEAK,
                               THE RICEX COMPANY,
                                 JOSEPH PAGANO,
                                EUGENE MULVIHILL
                                       and
                                BIOCEUTICS, INC.

                                   Dated as of
                                November 1, 1999

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TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                        PAGE
                                                                                        ----
<S>                                                                                     <C>
1.       Restrictions on Transfers of Shares..............................................1
2.       Pre-emptive Rights...............................................................3
3.       Control Transfer ................................................................4
4.       Tag Along Rights ................................................................5
5.       Representation and Warranty of Stockholders......................................7
6.       Noncompetition...................................................................7
8.       Personal Guaranty ...............................................................8
9.       RiceX Claims ....................................................................8
10.      Definition of Shares.............................................................8
11.      Specific Performance ............................................................8
12.      Successors and Assigns ..........................................................8
13.      Governing Law; Disputes .........................................................9
14.      Counterparts and Facsimile Signatures ...........................................9
15.      Titles and Subtitles ............................................................9
16.      Notices .........................................................................9
17.      Entire Agreement; Amendments and Waivers........................................11
18.      Severability....................................................................11
19.      Termination.....................................................................11
20.      Rights of Third Parties.........................................................11
</TABLE>

<PAGE>

                              STOCKHOLDER AGREEMENT

This STOCKHOLDER AGREEMENT is made as of the 1st day of November, 1999 by and
among PATRICIA McPEAK ("Patricia"), THE RICEX COMPANY ("RiceX" and, together
with Patricia, the "Mc/X Stockholders"), JOSEPH PAGANO ("Joe"), EUGENE
MULVIHILL ("Gene" and, together with Joe, the "P/M Stockholders") and
BIOCEUTICS, INC., a Delaware corporation ("Company").

WHEREAS, the Company was formed on August 6,1999 and thereafter issued an
aggregate of 1,000 shares of its common stock, $.01 par value ("Common
Stock"), to Patricia, RiceX, Joe and Gene (collectively, the "Stockholders")
for $1.00 per share, as follows:

<TABLE>
<CAPTION>
Stockholder                                                    Number of Share
<S>                                                            <C>
Joe                                                            325
Gene                                                           325
Patricia                                                       250
RiceX                                                          100
</TABLE>

WHEREAS, the Company and RiceX are simultaneously herewith entering into an
agreement pursuant to which the Company is being granted certain exclusive
purchase and distribution rights for RiceX's products ("License Agreement");
and

WHEREAS, the Company and Patricia are simultaneously herewith entering into
an employment agreement pursuant to which Patricia will be engaged as
President of the Company for a two-year term ("Employment Agreement") and an
Employee Confidentiality, Non-Competition and Assignment of Inventions
Agreement; and

WHEREAS, the Stockholders and the Company desire to set forth certain
agreements among them with respect to the transfer and control of the Common
Stock owned by them ("Shares");

NOW THEREFORE, in consideration of the premises and mutual agreements herein
and for other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

1.                 RESTRICTIONS ON TRANSFERS OF SHARES.

(a) TRANSFER OF SHARES. The Mc/X Stockholders may not sell, transfer, assign,
pledge, donate, or otherwise encumber or dispose (a "Transfer") of any
interest in the Shares unless (i) it has first complied with the Offer Right
(described below) and (ii) all Shares owned by it or her are the subject of
such Transfer. Notwithstanding anything to the contrary, neither RiceX nor
Patricia shall make any Transfer prior to November 1, 2001, except in
compliance with the terms of Section 4 of this Agreement; PROVIDED, HOWEVER,
that if a P/M Stockholder sells any of his Shares to any unaffiliated third
party, then the Mc/X Stockholder shall have the right, but not the
obligation, to sell a proportionate number of Mc/X Stockholder's Shares,
subject to the Offer Right (as defined below).

(b) FIRST OFFER RIGHT.

(i) If a Mc/X Stockholder wishes to make a Transfer of its Shares ("Offered
Shares"), then, at least ten (10) days before making any such Transfer, the
Mc/X Stockholder shall deliver to the Company and the P/M Stockholders a
written notice (the "Sale Notice") notifying them of the proposed Transfer.
The Sale Notice shall disclose in reasonable detail the proposed terms and
conditions of the Transfer, including, without limitation, the price per
share to be paid by the transferee, the identity of the transferee, evidence
of its financial ability to effectuate the purchase, and confirmation of

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the transferee's agreement to be bound by the terms of this Agreement. Unless
otherwise agreed by the P/M Stockholders, the purchase price for any Transfer
must be payable in cash.

(ii) The P/M Stockholders shall have the right to purchase all (but not less
than all) of the Offered Shares, at the price and on the terms specified in
the Sale Notice (the "Offer Right"). The P/M Stockholders may decide, as
between themselves, who shall purchase the Offered Shares. The P/M
Stockholders shall deliver written notice of their election to exercise the
Offer Right (the "Purchase Election Notice") to the Mc/X Stockholders within
5 days after the Sale Notice is given. Failure by the P/M Stockholders to
give a timely Purchase Election Notice to the Mc/X Stockholders shall be
deemed an election by them not to exercise the Offer Right.

(iii) If the P/M Stockholders elect to purchase all of the Offered Shares
pursuant to the Offer Right, then such purchase shall, unless the parties
thereto otherwise agree, be completed

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at a closing to be held at the principal office of the Company at 10:00 a.m.
local time on the 10th day following the exercise of the Offer Right.

(iv) The purchase price for the Shares sold pursuant to the Offer Right shall
be the purchase price contained in the Sale Notice, and shall be on the
applicable terms and conditions contained in the Sale Notice and this
Agreement.

(v) In the event that the P/M Stockholders fail to exercise the Offer Right,
then the Mc/X Stockholder shall be permitted to transfer the Offered Shares
solely to the proposed transferee and solely on the terms and conditions set
forth in the Sale Notice.

(c) RIGHTS AND OBLIGATIONS ATTACHED TO COMMON STOCK, SECURITIES LAWS. Upon a
Transfer by a Mc/X Stockholder, the recipient of the Shares shall be entitled
to all of the rights and benefits, and subject to all the obligations, of the
transferring Mc/X Stockholder arising under this Agreement. Prior to any
Transfer, the Mc/X Stockholders shall cause (i) the prospective transferee to
execute and deliver documents evidencing same to the Company and the P/M
Stockholders, in type and form reasonably satisfactory to the Company and the
P/M Stockholder and (ii) its counsel to deliver an opinion to the. Company,
in form reasonably satisfactory to the Company and the P/M Stockholder, to
the effect that such Transfer may be made without registration under federal
securities laws.

(d) IMPROPER TRANSFER. Any attempt to transfer any Shares which is not in
accordance with this Agreement or is in violation of law shall be null and
void, and the Company shall not give any effect to such attempted transfer in
the share records of the Company.

2.                 PRE-EMPTIVE RIGHTS.

(a) Except with respect to (i) the grant of options; (and the issuance of
shares of Common Stock upon exercise thereof) to employees, consultants,
directors and officers of the Company other than the Stockholders, and (ii)
the issuance of securities by the Company in an underwritten public offering,
if the Company proposes to offer or sell, in consideration for cash, shares
of Common Stock or any other class of capital stock or securities convertible
or exercisable into or exchangeable for shares of Common Stock or any other
class of the Company's capital stock ("New Offer"), the Company shall offer
to each Stockholder the right ("Pre-emptive Right"), on the same terms
specified below, to purchase up to that number of securities sufficient to
permit the Stockholder to maintain its proportionate equity interest in the
Company

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(as determined by dividing all of the Shares then owned by such Stockholder
by the shares of Common Stock then outstanding.

(b) The Company shall send a written notice of the New Offer to each
Stockholder at least ten (10) days prior to the consummation of any New Offer
specifying in reasonable detail the material terms of the New Offer
including, without limitation, the material terms of the proposed security,
the material terms of any proposed agreement to be executed by the purchaser,
the consideration per share to be paid by the purchaser, and the identity (if
known) of each proposed purchaser. Each Stockholder shall notify the Company
within five (5) days of the receipt of such notice whether it intends to
exercise its Pre-emptive Right. The closing of any purchase of securities by
a Stockholder under this Section shall take place on the same day as the
closing of the New Offer or, at the Stockholders' discretion, at anytime
within ten (10) days ("Stockholder Closing Period") thereafter; PROVIDED
HOWEVER, that the Stockholder Closing Period shall be six (6) months for any
New Offer made prior to November 1, 2000.

(c) The Pre-emptive Right afforded under this Section 2 shall terminate with
respect to a Stockholder at such time as it owns less than 5% of the
outstanding Common Stock.

3.                 CONTROL TRANSFER.

(a) If the P/M Stockholders propose to make a Control Transfer (as
hereinafter defined) of any of their Shares, then they shall have the right,
but not the obligation, to require the Mc/X Stockholders to participate
("Bring Along Right") in any such sale on the same terms as the P/M
Stockholders by requiring the purchaser to purchase from the Mc/X Stockholder
the "Mc/X Stockholders Proportionate Share" (as hereinafter defined) of the
Shares to be sold, on the same terms and conditions as pertain to the Shares
to be sold by the P/M Stockholders in the Control Transfer.

(b) "Mc/X Stockholders Proportionate Share" means the percentage determined
by dividing (x) the number of Shares then owned by the Mc/X Stockholders, by
(y) the sum of (i) the number of Shares then owned by the P/M Stockholders
plus (ii) the number of Shares then owned by the Mc/X Stockholders.

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(c) PROCEDURE.

(i) If the P/M Stockholders desire to make a Control Transfer, then at least
ten (10) days before making any such Control Transfer, the P/M Stockholders
may deliver to the Mc/X Stockholders a written notice (the "Change of Control
Notice") notifying it of the proposed Control Transfer. The Change of Control
Notice shall specify the proposed number of Shares to be the subject of the
Control Transfer (the "Subject Shares") and disclose in detail the proposed
terms and conditions of the Control Transfer, including, without limitation,
the price per share to be paid by the transferee, the identity of the
transferee, evidence of its financial ability to effectuate the purchase and,
if applicable, notice that the Mc/X Stockholders are obligated to include and
sell all of their Shares or the Mc/X Stockholders Proportionate Share, as the
case may be, as part of such Control Transfer pursuant to the Bring Along
Right.

(ii) If the P/M Stockholders exercise the Bring Along Right, the Mc/X
Stockholders shall cooperate in consummating the Control Transfer, including,
without limitation, by becoming parties to the sale agreement and all other
appropriate related agreements, delivery of certificates and other
instruments for its Shares duly endorsed for transfer, free and clear of all
liens and encumbrances, and voting or consenting in favor of such transaction
(to the extent a vote or consent is required) and taking any other necessary
or appropriate action in furtherance thereof, including the execution and
delivery of any other appropriate agreements, certificates, instruments and
other documents, including becoming a party to standard representations,
warranties and indemnities in such agreements.

(d) "Control Transfer" means the first transaction or series of related
transactions as a result of which any third party, or group of third parties
acting in concert, who are not affiliates of the P/M Stockholders, acquires,
directly or indirectly, from the P/M Stockholders for cash or other
consideration, a majority of the Common Stock owned by the P/M Stockholders
prior to such transaction or series of related transactions or the power or
ability to exercise voting rights in respect of a majority of such shares of
Common Stock.

4.                 TAG ALONG RIGHTS.

(a) If the P/M Stockholders propose to make a Control Transfer of any of
their Shares, then the Mc/X Stockholders shall have the right ("Tag-Along
Right"), but not the obligation, to participate

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in any such sale on the same terms as the P/M Stockholders by requiring the
purchaser to purchase from the Mc/X Stockholder the Mc/X Stockholders
Proportionate Share of the Shares to be sold, on the same terms and
conditions as pertain to the Shares to be sold by the P/M Stockholders in the
Control Transfer.

(b) If the P/M Stockholders desire to make a Control Transfer, then at least
10 days before making any such Control Transfer, the P/M Stockholders shall
deliver to the Mc/X Stockholders a Change of Control Notice notifying of the
proposed Control Transfer. The Change of Control Notice shall specify the
subject Shares and disclose in detail the proposed terms and conditions of
the Control Transfer, including without limitation, the price per share to be
paid by the transferee, the identity of the transferee, evidence of its
financial ability to effectuate the purchase and, if applicable, notice that
the Minority Shareholder may include and sell the Mc/X Stockholders
Proportionate Share as part of such Control Transfer pursuant to the
Tag-Along Right.

(c) If the Mc/X Stockholder wishes to participate in the Control Transfer, it
shall provide written notice thereof ("Tag-Along Notice") to the P/M
Stockholders no less than 5 days prior to the proposed date of the Control
Transfer. The Tag-Along Notice shall constitute the Mc/X Stockholder's
binding agreement to sell the Mc/X Stockholders Proportionate Share on the
terms and conditions applicable. to the Control Transfer. If the proposed
transferee or purchaser does not consummate the purchase of all of the Shares
on the terms and conditions applicable to the P/M Stockholders, then neither
the P/M Stockholders nor the Mc/X Stockholders shall consummate the sale of
any of its Shares to such transferee or purchaser.

(d) If the Mc/X Stockholders exercise the Tag-Along Right, the Mc/X
Stockholder shall cooperate in consummating the Control Transfer, including,
without limitation, by becoming a party to the sale agreement and all other
appropriate related agreements, delivery of certificates and other
instruments for their Shares duly endorsed for transfer, free and clear of
all liens and encumbrances, and voting or consenting in favor of such
transaction (to the extent a voter consent is required) and taking any other
necessary or appropriate action in furtherance thereof, and including the
execution and delivery of any other appropriate agreements, certificates,
instruments and other documents, including becoming a party to standard
representations, warranties and indemnities in such agreements.

(e) If a Tag-Along Notice is not received by the P/M Stockholders from the
Mc/X Stockholders prior to the 5 day period specified above, the P/M
Stockholders shall have the right to sell or otherwise transfer the number of
Shares specified in the Change of Control Notice to the proposed purchaser

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or transferee without any participation by the Mc/X Stockholder, but only on
the terms and conditions set forth in the Change of Control Notice.

5. REPRESENTATION AND WARRANTY OF STOCKHOLDERS. Each of the Stockholders
hereby represents and warrants that, except for this Agreement, it is not a
party to any contract or agreement respecting the Shares, including any
voting trust or other voting arrangement, option or transfer agreement.

6. NONCOMPETITION. If Patricia breaches any provisions of the Employee
Confidentiality, NonCompetition and Assignment of Inventions Agreement, being
signed simultaneously herewith (even if such Agreement, or any section of
such Agreement is held to be unenforceable by a court of law or other
tribunal), then from and after such date, (i) all rights provided to Patricia
in this Agreement shall terminate and (ii) the Company shall have the right
to purchase Patricia's shares for a price of $.01 per share.

7. LOAN OBLIGATION. Each of Joe, Gene and Patricia agree that, if the Company
needs working capital to operate its business at any time during the period
commencing on the date hereof and ending on the "Due Date," as defined below,
each of them will lend to the Company the Company's working capital
requirements, up to a maximum outstanding at any one point in time of
$400,000 in the following ratio:

Joe and Gene - 36.11% each
Patricia - 27.78%.

All amounts loaned will bear interest at the minimum rate to avoid imputation
of interest under the Internal Revenue Code and will be due and payable,
together with interest, on the earlier of November 1, 2001 or the date the
Company closes an equity debt financing from unaffiliated parties (such date
referenced to herein as the "Due Date"). All such loans will be secured by a
first priority perfected security interest in favor of Joe, Gene and Patricia
(on a pro rata basis) on all the Company's assets. Prior to making such
loans, the Company will execute, for the benefit of Joe, Gene and Patricia,
appropriate promissory notes and security agreements.

If Patricia determines to borrow funds to fulfill her loan obligation under
this Paragraph 7, each of Joe and Gene will lend 50% of the amount to be
borrowed by Patricia. All amounts loaned to Patricia will bear interest at
the minimum rate to avoid imputation of interest under the Internal Revenue
Code and will be due and payable, together with interest, on the earlier of.
(1) three (3) years from the date of the loan or (2) the date Patricia is
repaid by the Company. All of the shares of Common Stock held by Patricia as
of the date of this Agreement, plus any additional shares acquired by
Patricia, in the future, shall

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be pledged to the Joe and Gene as security. Prior to making such loans to
Patricia, Patricia will execute, for the benefit of Joe and Gene, appropriate
promissory notes, and pledge and escrow agreements.

8. PERSONAL GUARANTY. Joe and Gene each agree to guaranty 50% (for an
aggregate of 100%) of the salary owed to Patricia under the Employment
Agreement through November 1, 2001. Any funds advanced by Joe or Gene
pursuant to this guarantee shall be deemed to be loans to the Company with
the same terms (and subject to the same security) as those described in
Section 6, above. Prior to making any such loans, the Company will execute,
for the benefit of Joe and Gene, appropriate promissory notes and security
agreements.

9. RICEX CLAIMS. Each of Patricia and RiceX agree to jointly and severally
indemnify the Company, Joe and Gene ("Indemnified Parties") for, and hold
them harmless from and against, any and all costs, expenses and damages
(including reasonable attorneys' fees and expenses) incurred in connection
with any suit, action and claim brought by or on behalf of RiceX or its
stockholders against any Indemnified Party based on RiceX's failure to
capitalize on a corporate opportunity (or any related claim) arising out of,
or as a result of, RiceX entering into the License Agreement, Patricia
entering into the Employment Agreement or either RiceX or Patricia becoming a
Stockholder or entering into this Agreement.

10. DEFINITION OF "SHARES". The term "Shares" shall mean any and all shares
of Common Stock outstanding as of the date here of and any additional shares
of Common Stock hereafter acquired by the owner thereof.

11. SPECIFIC PERFORMANCE. If any Stockholder commits a breach, or threatens
to commit a breach, of any of the provisions of this Agreement, the other
parties shall have the right and remedy to have the provisions of this
Agreement specifically enforced by any court having equity jurisdiction, it
being acknowledged and agreed by the parties that the transactions
contemplated hereunder are of a special, unique and extraordinary character
and that any such breach or threatened breach by a party will cause
irreparable injury to the other parties and that money damages will not
provide an adequate remedy to such other parties.

12. SUCCESSORS AND ASSIGNS. None of the rights or obligations of the parties
hereto may be assigned without the written consent of each of the parties,
and any attempt to do so shall be null and void. Subject to the preceding
sentence, the rights and obligations of each party hereto shall be binding on
and inure to the benefit of its successors and permitted assigns.

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13. GOVERNING LAW; DISPUTES. This Agreement shall be governed by and
construed under the law of the State of Delaware, disregarding any principles
of conflicts of law that would otherwise provide for the application of the
substantive law of another jurisdiction. Each of the undersigned (i) agrees
that any legal suit, action or proceeding arising out of or relating to this
Agreement shall be instituted exclusively in the Superior Court of the State
of Delaware, (ii) waives any objection to the venue of any such suit, action
or proceeding and the right to assert that such forum is not a convenient
forum, and (iii) irrevocably consents to the jurisdiction of the Superior
Court of the State of Delaware in any such suit, action or proceeding. Each
of the undersigned further agrees to accept and acknowledge service of any
and all process which may be served in any such suit, action or proceeding in
the Superior Court of the State of Delaware and agrees that service of
process upon it mailed by certified mail to its address shall be deemed in
every respect effective service of process upon it in any such suit, action
or proceeding.

14. COUNTERPARTS AND FACSIMILE SIGNATURES. 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. A signature
received via facsimile shall be deemed an original for all purposes.

15. TITLES AND SUBTITLES. The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement.

16. NOTICES. All notices and other communications given or made pursuant
hereto shall be in writing and shall be deemed to have been duly given or
made as of the date delivered if delivered personally or by nationally
recognized overnight courier, or four business days after deposit with the
United States Post Office by certified mail, postage prepaid, to the parties
at the following addresses and numbers (or at such other address or number
for a party as shall be specified by like notice, except that notices of
changes of address or number shall be effective upon receipt):

If to Patricia:

Patricia McPeak
100 Rock Lane
El Dorado Hills California 95762
Telephone No.: (916)933-1000
Facsimile No.: (916) 933-9300

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If to RiceX:

The RiceX Company 1241 Hawk's Flight Court El Dorado Hills, California 95762
Attn: Daniel L. McPeak, Sr. Telephone No.: (916) 933-3000 Facsimile No.:
(916) 933-3333

If to Joe or the Company:

Graubard Mollen & Miller 600 Third Avenue New York, New York 100 16 Attn:
David Alan Miller, Esq. Telephone No.: (212) 818-8800 Facsimile No: (212)
818-8881

If to Gene:

Eugene Mulvihill 355 Madison Avenue Morristown, New Jersey 07960 Telephone
No.: (973) 984-2276 Facsimile No.: (973) 984-5062

with a copy in any case to:

Crosby, Heafey, Roach & May 700 South Flower Street - Suite 2200 Los Angeles,
California 90017 Attn: Richard W, Lasater II Telephone No.: (213) 896-8025
Facsimile No.: (213) 896-8000

Graubard Mollen & Miller 600 Third Avenue New York, New York 100 16 Attn:
David Alan Miller, Esq. Telephone No.: (212) 818-8800 Facsimile No: (212)
818-8881)

                                       10
<PAGE>

and

Sheppard, Mullin, Richter & Hampton LLP 4 Embarcadero Center - 17th Floor San
Francisco, California 94111-9100 Attn: William T. Manierre, Esq. Telephone
No.: (415) 434-9100 Facsimile No.: (415) 434-3947

17. ENTIRE AGREEMENT; AMENDMENTS AND WAIVERS. This Agreement constitutes the
full and entire understanding and agreement between the parties with regard
to the subjects hereof. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or
in a particular instance and either retroactively or prospectively), only
with the written consent of the Company and each Stockholder.

18. SEVERABILITY. If one or more provisions of this Agreement is or are held
to be unenforceable under applicable law, such provision(s) shall be excluded
from this Agreement and the balance of this Agreement shall be interpreted as
if such provision(s) were so excluded and shall be enforceable in accordance
with its remaining terms.

19. TERMINATION. The provisions of this Agreement will terminate
automatically and be of no further force and effect upon the earliest of (i)
consummation of a Control Transfer, and (ii) consummation of the initial
public offering of the Company's equity securities.

20. RIGHTS OF THIRD PARTIES. Nothing in this Agreement, express or implied,
is intended to confer upon any party other than the parties hereto or their
respective permitted successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

                         NEXT PAGE IS THE SIGNATURE PAGE

                                       11
<PAGE>

IN WITNESS WHEREOF, the parties here to have executed this Stockholder
Agreement on the day and year first above written.

PATRICIA McPEAK
By:/s/Patricia McPeak

THE RICEX COMPANY
By:/s/Daniel L. McPeak
Name: Daniel L. McPeak
Title: Chief Executive Officer and
Chairman of the Board

JOSEPH PAGANO
By:/s/Joseph Pagano

EUGENE MULVIHILL
By:/s/Eugene Mulvihill

BIOCEUTICS, INC.

By:/s/Samuel Rozzi
Name: SAMUEL ROZZI
Title: VICE PRESIDENT

                                       12<PAGE>

EXHIBIT 4.49

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 Loan
Agreement between Dorchester Group and The RiceX Company (the "Company"). The
Company hereby grants to Dorchester Group, 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:

         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 April 26, 2001, 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 one dollar ($1.00) per
share of Warrant Stock. The Purchase Price is subject to adjustment, as
provided herein.

         1.6   REGISTERED HOLDER. "Registered Holder" means Dorchester Group
or its permitted registered assigns.

<PAGE>

         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 250,000 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 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.

     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
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:

                                       2
<PAGE>

         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 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

                                       3
<PAGE>

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:

               (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 Holders 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.

         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

                                       4
<PAGE>

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.

               (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.

                                       5
<PAGE>

     12. REGISTRATION RIGHTS.

         12.1  DEFINITIONS. For purposes of this Section 12:

               (a) ACT. The term "Act" means the Securities Act of 1933, as
amended;

               (b) REGISTRABLE SECURITIES. The term "Registrable Securities"
means the Warrant Stock and any shares of Common Stock of the Company issued
as (or issuable upon the conversion or exercise of any warrant, right or
other security which is issued as) a dividend or other distribution with
respect to, or in exchange for or in replacement of, such Warrant Stock,
excluding in all cases, any Registrable Securities sold by a person in a
transaction in which his rights under this Section 12 are not assigned.

               (c) 1934 ACT. The term "1934 Act" means the Securities
Exchange Act of 1934, as amended;

               (d) REGISTRATION; REGISTER OR REGISTERED. The terms
"Register," "Registered," and "Registration" refer to a registration effected
by preparing and filing a registration statement in compliance with the Act
and the declaration or ordering of the effectiveness of such registration
statement;

               (e) REQUIRED INFORMATION. The term "Required Information"
means (i) facts or events representing a material or fundamental change in
the information included in the Registration Statement or (ii) prospectus
required by Section 19(a)(3) of the Act;

               (f) RULE 144. The term "Rule 144" means Rule 144 as
promulgated by the SEC under the Act, as amended from time to time, or any
similar or successor rule that may be promulgated by the SEC;

               (g) RULE 145. The term "Rule 145" shall mean Rule 145 as
promulgated by the SEC under the Act, as amended from time to time, or any
similar or successor rule that may be promulgated by the SEC; and

               (h) SEC. The term "SEC" means the Securities and Exchange
Commission.

         12.2  COMPANY REGISTRATION. Subject to Section 12.6, if at any time
(but without obligation to do so), the Company proposes to Register any of
its common stock under the Act (i) in connection with an underwritten public
offering of such securities (other than a registration relating solely to the
sale of securities to employees of the Company pursuant to a stock option,
stock purchase or similar plan, or a registration relating to a Rule 145
transaction or a registration on any form which does not include
substantially the same information as would be required to be included in a
registration statement covering the sale of the Company's common stock) on a
form that would also permit the Registration of the Registrable Securities or
(ii) for the account of a shareholder or shareholders exercising their
respective registration rights, the Company shall, each such time, promptly
give Registered Holder written notice of such determination. Upon the written
request of Registered Holder given within twenty (20) days after the mailing
of any such notice by the Company in accordance with Section 13.3, the
Company shall, subject to the provisions of Section 12.6, use its best
efforts to include in such Registration and cause to be Registered all of the
Registrable Securities that Registered Holder requested be Registered.

         12.3  REGISTRATION PROCEDURES. Whenever required under Section 12.2
to use its best efforts to effect the Registration of any Registrable
Securities, the Company shall accomplish the following as expeditiously as
reasonably possible:

               (a) REGISTRATION STATEMENT. Prepare and file with the SEC a
registration statement with respect to such Registrable Securities
("Registration Statement") and use its best efforts to cause such
Registration Statement to become and remain effective. In connection with any
proposed Registration intended to permit an offering of any securities from
time to time, the Company shall not be obligated to cause any such
Registration to remain effective (i) for more than one hundred and twenty
(120) days nor (ii) until the Registered

                                       6
<PAGE>

Holder has completed the distribution; provided, that such one hundred twenty
(120) day period shall be extended for such period of time as the Registered
Holder refrains from selling any securities included in such Registration at
the request of an underwriter of common stock or other securities of the
Company;

               (b) AMENDMENTS. Prepare and file with the SEC such amendments
and supplements to such Registration Statement as may be necessary to comply
with the provisions of the Act for the disposition of securities covered by
such Registration Statement;

               (c) COPIES. Furnish to Registered Holder copies of a
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Act and all applicable SEC rules and regulations, and
such other documents as the Registered Holder may reasonably request in order
to facilitate the disposition of Registrable Securities owned by Registered
Holder, including without limitation an earnings statement which satisfies
the provisions of Section 11(a) of the Act; and

               (d) BLUE SKY. Use its best efforts to Register and qualify the
securities covered by such Registration Statement under such other securities
or blue sky laws of such jurisdictions as shall reasonably be appropriate for
the distribution of the securities covered by the Registration Statement;
provided, that the Company shall not be required in connection therewith or
as a condition thereto to qualify to do business or to file a general consent
to service of process in any such jurisdictions. If any jurisdiction in which
the securities shall be qualified shall require that expenses incurred in
connection with the qualification of the securities in the jurisdiction be
borne by the selling shareholders, then expenses shall be payable by the
selling shareholders pro rata, to the extent required by such jurisdiction.

         12.4  REGISTERED HOLDER INFORMATION. As a condition precedent to the
obligations of the Company to take any action pursuant to this Agreement, the
Registered Holder shall furnish to the Company such information regarding
Registered Holder, the Registrable Securities held by Registered Holder, and
the intended method of disposition of such securities as the Company shall
reasonably request and as shall be required in connection with the action to
be taken by the Company.

         12.5  REGISTRATION EXPENSES. The Company shall bear all expenses of
Registration (excluding underwriting discounts and the legal fees of counsel
separately retained by the selling Registered Holder and expenses directly
incurred by the selling Registered Holder). Such expenses of Registration
shall include without limitation, Registration, qualification and filing fees
and legal fees of the Company. All underwriting discounts with respect to
such shares shall be borne by the Registered Holder requesting registration.

         12.6  UNDERWRITING REQUIREMENTS. In connection with any offering
involving an underwriting of shares being issued by the Company, the Company
shall not be required under Section 12.2 to include any of the Registered
Holder's Registrable Securities in such underwriting unless the Registered
Holder accepts the terms of the underwriting as agreed upon between the
Company and the underwriters selected by it and then only in such quantity as
will not, in the written opinion of the underwriters or the Company,
jeopardize the success of the offering by the Company. If the total amount of
securities that the Registered Holder requests to be included in such
offering exceeds the amount of securities that the underwriters or the
Company reasonably believe to be compatible with the success of the offering,
the Company shall only be required to include in the offering so many of the
securities of the selling Registered Holder as the underwriters or the
Company believe will not jeopardize the success of the offering determined as
provided in Section 12.7 below.

         12.7  ALLOCATION OF RIGHTS. Except as may otherwise be required
under any other agreement to which the Company is a party on the date of this
Warrant, if the total number of shares of Registrable Securities and other
common stock with registration rights (including common stock to be received
upon conversion of convertible securities) ("Other Shares") exceeds the
number of shares to be included in a Registration, then the number of shares
of Registrable Securities and Other Shares to be included in the Registration
shall be allocated among the Registered Holder of the Registrable Securities
and shareholders of the Other Shares who hold similar or greater registration
rights on the basis of the proportionate number of shares held by such
Registered Holder (assuming full conversion). If any Registered Holder or
other selling shareholder does not request inclusion of the maximum number of
shares of Registrable Securities and Other Shares allocated to Registered
Holder, then the remaining portion of Registered

                                       7
<PAGE>

Holders allocation shall be reallocated among those requesting Registered
Holders and other selling shareholders whose allocations did not satisfy
their requests on the basis of the number of shares of Registrable Securities
and Other Shares held by such Registered Holders and other selling
shareholders (assuming full conversion). This procedure shall be repeated
until all Registrable Securities and Other Shares which may be included in
the Registration have been so allocated.

         12.8  NO DELAY OF REGISTRATION. No Registered Holder shall have any
right to take any action to restrain, enjoin, or otherwise delay any
Registration as the result of any controversy that might arise with respect
to the interpretation or implementation of this Agreement.

         12.9  INDEMNIFICATION. In the event any Registrable Securities is
included in a Registration Statement pursuant to this Agreement:

               (a) INDEMNIFICATION BY THE COMPANY. To the extent permitted by
law, the Company shall indemnify and hold harmless Registered Holder
requesting or joining in a Registration, any underwriter (as defined in the
Act) for it, and each person, if any, who controls such Registered Holder or
underwriter within the meaning of the Act, against any losses, claims,
damages or liabilities, joint or several, to which they may become subject
under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) (i) arise out of or are based on
any untrue or alleged untrue statement of any material fact contained in such
Registration Statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii)
arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, or (iii) arise out of any violation by
the Company of any rule or regulation promulgated under the Act applicable to
the Company and relating to action or inaction required of the Company in
connection with any such Registration. In such event the Company shall
reimburse each such Registered Holder, such underwriter or controlling person
for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the indemnity agreement contained in this
Section 12.9(a) shall not apply to (i) amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected
without the consent of the Company (which consent shall not be unreasonably
withheld) nor (ii) any such loss, claim, damage, liability or action to the
extent that it arises out of or is based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in connection with such
Registration Statement, preliminary prospectus, final prospectus or
amendments or supplements thereto, in reliance upon and in conformity with
written information furnished expressly for use in connection with such
Registration by any such Registered Holder;

               (b) INDEMNIFICATION BY REGISTERED HOLDER. To the extent
permitted by law, each Registered Holder requesting or joining in a
Registration will indemnify and hold harmless the Company, each of its
officers, legal counsel and directors, and each person, if any, who controls
the Company within the meaning of the Act and each agent, any underwriter
(within the meaning of the Act) for the Company or such other holders, any
person who controls such underwriter and any other holder of selling
securities in such Registration Statement or any of its officers or directors
or any person who controls such holder against any losses, claims, damages or
liabilities (joint or several) to which the Company or any such director,
officer, legal counsel, controlling person, agent or underwriter may become
subject, under the Act, the 1934 Act or other federal or state law, or
otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereto) arise out of or are based upon (i) any untrue or alleged
untrue statement of any material fact contained in such Registration
Statement, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto, (ii) the omission or
alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, or (iii)
arise out of any violation by the Registered Holder of any rule or regulation
promulgated under the Act applicable to the Registered Holder and relating to
action or inaction required of the Registered Holder in connection with any
such Registration, in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged
omission was made in such Registration Statement, preliminary or final
prospectus, or amendments or supplements thereto, in reliance upon and in
conformity with written information furnished by such Registered Holder
expressly for use in connection with such registration. Such Registered
Holder will reimburse any legal or other expenses reasonably incurred by the

                                       8
<PAGE>

Company or any such director, officer, legal counsel, controlling person,
agent or underwriter in connection with investigating or defending any such
loss, claim, damage, liability or action;

               (c) NOTICE. Promptly after receipt by an indemnified party
under this Section 12.9 of notice of the commencement of any action
(including any government action), such indemnified party shall, if a claim
in respect thereof is to be made against any indemnifying party under this
Section, notify the indemnifying party in writing of the commencement thereof
and the indemnifying party shall have the right to participate in and,
jointly with any other indemnifying party similarly noticed, to assume the
defense thereof with counsel mutually satisfactory to the parties; provided,
however, if representation jointly would be inappropriate due to potential
differing interests between such parties in such proceeding, either party may
retain counsel of its own. The failure to notify an indemnifying party
promptly of the commencement of any such action, if prejudicial to his or its
ability to defend such action, shall relieve such indemnifying party of any
liability to the indemnified party under this Section, but the failure to
notify the indemnifying party shall not relieve him of any liability that the
indemnifying party may have to any indemnified party otherwise than under
this Section 12.9; and

               (d) CONTRIBUTION. If the indemnification provided for in this
Section 12.9 is held by a court of competent jurisdiction to be unavailable
to an indemnified party hereunder with respect to any loss, liability, claim,
damage or expense, then the indemnifying party, in lieu of indemnifying such
indemnified party shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage or
expense in such proportion as is appropriate to reflect the relative fault of
the indemnifying party and of the indemnified party in connection with the
statement or omissions that resulted in such loss, liability, claim, damage
or expense as well as any other relevant equitable considerations. The
relative fault of the indemnifying party and of the indemnified party shall
be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission to state a
material fact relates to information supplied by the indemnifying party or
the indemnified party, and the opportunity to correct or prevent such
statement or omission. Such allocation shall be consistent with the
principles of indemnification provisions under Sections 12.9 (a) and (b)
above.

         12.10 TERMINATION OF THE COMPANY'S OBLIGATIONS. The right of any
Registered Holder to request Registration pursuant to this Agreement shall
terminate on, or on the first date after, the closing of the first Registered
public offering of the Company's common stock initiated by the Company if all
shares of Registrable Securities held or entitled to be held upon conversion
by such Registered Holder may immediately be sold under Rule 144 of the Act
during any ninety (90)-day period.

         12.11 REPORTS UNDER 1934 ACT. In order to allow the Registered
Holders the benefits of Rule 144 promulgated under the Act and any other rule
or regulations of the SEC that may at any time permit the Registered Holder
to sell securities of the Company to the public without Registration, the
Company agrees to use its best efforts to:

               (a) PUBLIC INFORMATION. Make and keep public information
available, as those terms are understood and defined in Rule 144;

               (b) FILING. File with the SEC in a timely manner all reports
and other documents required of the Company under the Act and the 1934 Act;
and

               (c) COPIES OF REPORTS. Furnish upon request to any Registered
Holder, so long as such Registered Holder owns any Registrable Securities:
(i) a written statement by the Company that the Company has complied with the
reporting requirements of Rule 144, the Act and the 1934 Act (at any time
after it has become subject to such reporting requirements); (ii) a copy of
the most recent annual or quarterly report of the Company; and (iii) such
other reports and documents so filed by the Company as may be reasonably
requested in availing any Registered Holder of any rule or regulation of the
SEC permitting the selling of any such securities without Registration.

         12.12 LOCKUP AGREEMENT. Upon the request of the Company or the
underwriters managing any firm commitment underwritten offering of the
Company's securities, in connection with any Registration, each

                                       9
<PAGE>

Registered Holder agrees that it shall not, sell or otherwise dispose of any
Registrable Securities during a period of up to one-hundred and eighty days
(or more if requested by the underwriter or the Company) following the
effective date of a registration statement; provided that such agreement
shall only apply to the first such Registration including securities sold on
behalf of the Company to the public in an underwritten offering. The
obligations of the Registered Holders under this paragraph 12.12 shall not
apply to a registration relating solely to employee benefit plans on Form S-1
or Form S-8 or similar forms that may be promulgated in the future. The
Company may impose stop-transfer instructions with respect to all shares (or
securities) subject to the foregoing restriction until the end of such one
hundred eighty (180)-day period (or such longer period). Registered Holder
will not be required to lockup Registrable Securities on terms less favorable
than the terms of lockup agreements with the Company's officers and/or
directors.

         12.13 NO LIMITATION ON FUTURE REGISTRATION RIGHTS. Other than the
obligations imposed hereunder on the Company to allocate registration rights,
the Company shall not be restricted from granting any form of registration
rights to any person.

         12.14 TRANSFER OF REGISTRATION RIGHTS. The registration rights of
Registered Holder under this Agreement may be transferred to any transferee
who acquires from Registered Holder shares representing at least one percent
(1%) of the issued and outstanding Shares of the Company; provided, that the
Company is given written notice by the Registered Holder at the time of such
transfer stating the name and address of the transferee and identifying the
securities with respect to which the rights under this Agreement are being
assigned.

     13. GENERAL PROVISIONS.

         13.1  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.

         13.2  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.

         13.3  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 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
El Dorado Hills, CA 95762
Fax: (916) 933-3232

With a copy to:

Crosby, Heafey, Roach & May

                                       10
<PAGE>

700 S. Flower St., Suite 2200
Los Angeles, CA  90017
Attn:  Richard Lasater

If to the Registered Holder:

Dorchester Group
67 Forest Road
Tenafly, NJ  07670
Attn:  Robert Hesse

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.

         13.4  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.

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

         13.6  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

         13.7  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.

         13.8  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.

         13.9  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 April 26, 1999

                                       COMPANY

                                       The RiceX Company, a Delaware corporation

                                       11
<PAGE>

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

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

                                       REGISTERED HOLDER

                                       Dorchester Group

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

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

                                       12
<PAGE>

                                    EXHIBIT 1
                                SUBSCRIPTION FORM

                 (To be executed only upon exercise of Warrant)

         The undersigned 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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