Document:

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                                                                     EXHIBIT 4.4

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE
SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT AND ANY APPLICABLE
STATE SECURITIES LAWS.

WARRANT NO.  ___

                        WARRANT TO PURCHASE A MAXIMUM OF
                    ___________ SHARES OF THE COMMON STOCK OF
                       GREYSTONE TECHNOLOGY, INCORPORATED
                           (VOID AFTER ______________)

        This certifies that _____________, or his assigns (the "Holder"), for
value received, is entitled to purchase, pursuant to this Warrant, from
GREYSTONE TECHNOLOGY, INCORPORATED, a California corporation (the "Company"),
having a place of business at 4950 Murphy Canyon Road, San Diego, California,
92123, up to a maximum of ___________ fully paid and nonassessable shares of the
Company's Common Stock (the "Stock") for cash at a price of $_______ per share
(the "Stock Purchase Price") at any time or from time to time up to and
including 5:00 p.m. (Pacific time) on the date that is ________ years from
____________________ (the "Expiration Date") upon surrender to the Company at
its principal office (or at such other location as the Company may advise the
Holder in writing) of this Warrant properly endorsed with the Form of
Subscription attached hereto duly filled in and signed and upon payment in cash
or by check of the aggregate Stock Purchase Price for the number of shares for
which this Warrant is being exercised determined in accordance with the
provisions hereof. The Stock Purchase Price and the number of shares purchasable
hereunder are subject to adjustment as provided in Section 3 of this Warrant.

        This Warrant is subject to the following terms and conditions:

        1. Exercise; Issuance of Certificates; Payment for Shares. This Warrant
shall vest and shall be exercisable at the option of the holder of record hereof
______________________________________. Once subject to purchase, the shares of
the Stock subject to this Options shall remain subject to purchase up to the
Expiration Date for all or any part of the shares of Stock (but not for a
fraction of a share). Seller agrees that the shares of Stock purchased under
this Warrant shall be and are deemed to be issued to the Holder hereof as the
record owner of such shares as of the close of business on the date on which
this Warrant shall have been surrendered, properly endorsed, the completed,
executed Form of Subscription delivered and payment made for such shares.
Certificates for the shares of Stock so purchased, together with any other
securities or property to which the Holder hereof is entitled upon such
exercise, shall be delivered to the Holder hereof by Seller at Seller's expense
within a reasonable time after the rights represented by this Warrant have been
so exercised. In case of a purchase of less than all the shares which may be
purchased under this Warrant, Seller shall cancel this Warrant and execute and
deliver a new Warrant or Warrants of like tenor for the balance of the shares
purchasable under the Warrant surrendered upon such purchase to the Holder
hereof within a reasonable time. Each stock certificate so delivered shall be in
such denominations of Stock as may be requested by the Holder hereof and shall
be registered in the name of such Holder. The minimum number of shares of Stock
which Holder may exercise at any time is 1000 shares.

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        2. Shares to be Fully Paid; Reservation of Shares. The Company covenants
and agrees that all shares of Stock which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be duly authorized,
validly issued, fully paid and nonassessable and free from all preemptive rights
of any shareholder and free of all taxes, liens and charges with respect to the
issue thereof. The Company further covenants and agrees that during the period
within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized and reserved, for the purpose of issue
or transfer upon exercise of the subscription rights evidenced by this Warrant,
a sufficient number of shares of authorized but unissued Stock, or other
securities and property, when and as required to provide for the exercise of the
rights represented by this Warrant. The Company will take all such action as may
be necessary to assure that such shares of Stock may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of any domestic securities exchange upon which the Stock may be
listed; provided, however, that the Company shall not be required to effect a
registration under Federal or State securities laws with respect to such
exercise. The Company will not take any action which would result in any
adjustment of the Stock Purchase Price (as defined in Section 3 hereof) if the
total number of shares of Stock issuable after such action upon exercise of all
outstanding warrants, together with all shares of Stock then issuable upon
exercise of all options and upon the conversion of all convertible securities
then outstanding, would exceed the total number of shares of Stock then
authorized by the Company's Articles of Incorporation.

        3. Adjustment of Stock Purchase Price and Number of Shares. The Stock
Purchase Price and the number of shares purchasable upon the exercise of this
Warrant shall be subject to adjustment from time to time upon the occurrence of
certain events described in this Section 3. Upon each adjustment of the Stock
Purchase Price, the Holder of this Warrant shall thereafter be entitled to
purchase, at the Stock Purchase Price resulting from such adjustment, the number
of shares obtained by multiplying the Stock Purchase Price in effect immediately
prior to such adjustment by the number of shares purchasable pursuant hereto
immediately prior to such adjustment, and dividing the product thereof by the
Stock Purchase Price resulting from such adjustment.

           3.1 Subdivision or Combination of Stock. In case the Company shall at
any time subdivide its outstanding shares of Stock into a greater number of
shares, the Stock Purchase Price in effect immediately prior to such subdivision
shall be proportionately reduced, and conversely, in case the outstanding shares
of Stock of the Company shall be combined into a smaller number of shares, the
Stock Purchase Price in effect immediately prior to such combination shall be
proportionately increased.

           3.2 Dividends in Stock, Other Stock, Property, Reclassification. If
at any time or from time to time the Holders of Stock (or any shares of stock or
other securities at the time receivable upon the exercise of this Warrant) shall
have received or become entitled to receive, without payment therefor,

               (A) Stock or any shares of stock or other securities which are at
any time directly or indirectly convertible into or exchangeable for Stock, or
any rights or options to subscribe for, purchase or otherwise acquire any of the
foregoing by way of dividend or other distribution, or

               (B) Stock or additional stock or other securities or property
(including cash) by way of spin-off, split-up, reclassification, combination of
shares or similar corporate rearrangement, (other than shares of Stock issued as
a stock split, adjustments in respect of which shall be covered by the terms of
Section 3.1 above), then and in each such case, the Holder hereof shall, upon
the exercise of this Warrant, be entitled to receive, in addition to the number
of shares of Stock receivable thereupon, and without payment of any additional
consideration therefor, the amount of stock and other securities and property
which such Holder would hold on the date of such exercise had he been the holder
of record of

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such Stock as of the date on which holders of Stock received or became entitled
to receive such shares or all other additional stock and other securities and
property.

           3.3 Reorganization, Reclassification, Consolidation, Merger or Sale.
If any capital reorganization of the capital stock of the Company, or any
consolidation or merger of the Company with another corporation, or the sale of
all or substantially all of its assets to another corporation shall be effected
in such a way that holders of Stock shall be entitled to receive stock,
securities, or other assets or property, then, as a condition of such
reorganization, reclassification, consolidation, merger or sale, lawful and
adequate provisions shall be made whereby the holder hereof shall thereafter
have the right to purchase and receive (in lieu of the shares of the Stock of
the Company immediately theretofore purchasable and receivable upon the exercise
of the rights represented hereby) such shares of stock, securities or other
assets or property as may be issued or payable with respect to or in exchange
for a number of outstanding shares of such Stock equal to the number of shares
of such stock immediately theretofore purchasable and receivable upon the
exercise of the rights represented hereby. In any reorganization described
above, appropriate provision shall be made with respect to the rights and
interests of the Holder of this Warrant to the end that the provisions hereof
(including, without limitation, provisions for adjustments of the Stock Purchase
Price and of the number of shares purchasable and receivable upon the exercise
of this Warrant) shall thereafter be applicable, as nearly as may be, in
relation to any shares of stock, securities or assets thereafter deliverable
upon the exercise hereof.

           3.4 Notice of Adjustment. Upon any adjustment of the Stock Purchase
Price or any increase or decrease in the number of shares purchasable upon the
exercise of this Warrant, the Company shall give written notice thereof, by
first class mail, postage prepaid, addressed to the registered Holder of this
Warrant at the address of such Holder as shown on the books of the Company. The
notice shall be signed by the Company's chief financial officer and shall state
the Stock Purchase Price resulting from such adjustment and the increase or
decrease, if any, in the number of shares purchasable at such price upon the
exercise of this Warrant, setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is based.

           3.5 Other Notices. If at any time:

               (1) the Company shall declare any cash dividend upon its Common
Stock;

               (2) the Company shall declare any dividend upon its Common Stock
payable in stock or make any special dividend or other distribution to the
holders of its Common Stock;

               (3) the Company shall offer for subscription pro rata to the
holders of its Common Stock any additional shares of stock of any class or other
rights;

               (4) there shall be any capital reorganization or reclassification
of the capital stock of the Company; or consolidation or merger of the Company
with, or sale of all or substantially all of its assets to, another corporation;
or

               (5) there shall be a voluntary or involuntary dissolution,
liquidation or winding-up of the Company;

then, in any one or more of said cases, the Company shall give, by first class
mail, postage prepaid, addressed to the Holder of this Warrant at the address of
such Holder as shown on the books of the Company, (a) at least 20 days' prior
written notice of the date on which the books of the Company shall close or a
record shall be taken for such dividend, distribution or subscription rights or
for determining

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rights to vote in respect of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding-up, and (b) in
the case of any such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding-up, at least 20 days' prior written
notice of the date when the same shall take place; provided, however, that the
Holder shall make a best efforts attempt to respond to such notice as early as
possible after the receipt thereof. Any notice given in accordance with the
foregoing clause (a) shall also specify, in the case of any such dividend,
distribution or subscription rights, the date on which the holders of Common
Stock shall be entitled thereto. Any notice given in accordance with the
foregoing clause (b) shall also specify the date on which the holders of Stock
shall be entitled to exchange their Stock for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation, winding-up or conversion, as the case may be.

           3.6 Certain Events. If any change in the outstanding Common Stock of
the Company or any other event occurs as to which the other provisions of this
Section 3 are not strictly applicable or if strictly applicable would not fairly
protect the purchase rights of the Holder of the Warrant in accordance with such
provisions, then the Board of Directors of the Company shall make an adjustment
in the number and class of shares available under the Warrant, the Stock
Purchase Price or the application of such provisions, so as to protect such
purchase rights as aforesaid. The adjustment shall be such as will give the
Holder of the Warrant upon exercise for the same aggregate Stock Purchase Price
the total number, class and kind of shares as he would have owned had the
Warrant been exercised prior to the event and had he continued to hold such
shares until after the event requiring adjustment.

        4. Company Registration.

           4.1(a) If, at any time or from time to time, the Company shall
determine to register any of its securities pursuant to the Act, either for its
own account or the account of a security holder or holders exercising their
respective registration rights, other than a registration relating solely to
employee benefit plans on Form S-8 or similar forms which may be promulgated in
the future or a registration on Form S-4 or similar forms which may be
promulgated in the future relating solely to a Securities and Exchange
Commission Rule 145 or similar transaction, the Company will (i) promptly give
to each Holder written notice thereof and (ii) include in such registration (and
any related qualification or other compliance under blue sky laws), and in any
underwriting involved therein, all shares of Common Stock issued upon the
exercise of this Warrant ("Registrable Securities") of such Holders as specified
in a written request or requests made within 15 days after receipt of such
written notice from the Company.

               (b) If the registration of which the Company gives notice is for
a registered public offering involving an underwriting, the Company shall so
indicate in the notice given pursuant to Section 4.1(a). In such event the right
of any Holder to registration pursuant to this Section 4.1 shall be conditioned
upon such Holder's agreeing to participate in such underwriting and in the
inclusion of such Holder's Registrable Securities in the underwriting to the
extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall (together with the Company and the other holders
distributing their securities through such underwriting) enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting by the Company or by other holders exercising any
demand registration rights. Notwithstanding any other provision of this Section
4.1, if the underwriter determines that marketing factors require a limitation
of the number of shares to be underwritten, the underwriter may exclude some or
all Registrable Securities or other securities from such registration and
underwriting (hereinafter an "Underwriter Cutback"). In the event of an
Underwriter Cutback, the Company shall so advise all Holders and the other
holders distributing their securities through such underwriting, and the number
of Registrable Securities and other securities

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that may be included in the registration and underwriting shall be allocated
among all holders thereof (including the Holders but excluding those holders who
are exercising their demand registration rights) in proportion, as nearly as
practicable, to the respective amounts of Common Stock of the Company (including
shares issuable upon conversion of any shares of outstanding Preferred Stock)
held by such holders at the time of filing the registration statement. If any
Holder disapproves of the terms of any such underwriting, such Holder may elect
to withdraw therefrom by written notice to the Company and the underwriter. Any
securities excluded or withdrawn from such underwriting shall be withdrawn from
such registration.

           4.2 Expenses of Registration. All Registration Expenses incurred in
connection with any registration, qualification or compliance pursuant to
Sections 4.1 (exclusive of Selling Expenses but inclusive of the reasonable fees
and expenses of one special counsel to the selling Holders), shall be borne by
the Company.

           4.3 Registration Procedures. In the case of each registration,
qualification or compliance effected by the Company pursuant to this Section 4,
the Company will keep each Holder advised in writing as to the initiation of
each registration, qualification and compliance and as to the completion
thereof. At its expense the Company will:

               (a) Keep such registration, qualification or compliance effective
for a period of 120 days or until the Holder or Holders have completed the
distribution described in the registration statement relating thereto, whichever
first occurs; and

               (b) Furnish such number of prospectuses and other documents
incident thereto as a Holder from time to time may reasonably request.

        Notwithstanding any provision to the contrary in this Agreement, the
Company shall not be required in connection with any registration pursuant to
Section 4.1 to qualify shares in any state or jurisdiction which requires the
Company to qualify to do business or to file a general consent to service of
process.

        4.4 Information by and to Holder. The Holder or Holders of Registrable
Securities included in any registration shall furnish to the Company such
information regarding such Holder or Holders and the distribution proposed by
such Holder or Holders as the Company may request in writing and as shall be
required in connection with any registration, qualification or compliance
referred to in this Section 4. The Company will furnish to the Holder such
number of prospectuses or other documents incident to any registration referred
to in this Section 4 as the Holder may from time to time reasonable request.
Notwithstanding any other provision of this Warrant, the Company shall not be
required to file a registration statement to allow trading of this Warrant.

        4.5 Termination of Registration Rights. The registration rights granted
pursuant to this Section 1 shall terminate (i) upon the fifth anniversary of the
effective date of the first registration statement filed by the Company covering
an underwritten offering of its securities to the general public or (ii) as to
any individual Holder, at such time after the Company's initial registered
public offering as all Registrable Securities held by such Holder can be sold
without compliance with the registration requirements of the Securities Act
pursuant to Rule 144 (including Rule 144(k)) promulgated thereunder.

        4.6 "Market Stand Off" Agreement. Each Shareholder hereby agrees that it
shall not, to the extent requested by the Company and an underwriter of Common
Stock (or other securities) of the Company, sell or otherwise transfer or
dispose (other than to those who agree to be similarly bound) of

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any Registrable Securities during the one hundred eighty (180) day period
following the effective date of a registration statement of the Company filed
under the Securities Act; provided, however, that such agreement shall only be
applicable to the first such registration statement of the Company which covers
shares (or securities) to be sold on its behalf to the public in an underwritten
offering.

        In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the Registrable Securities of the
Shareholder (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such one hundred eighty (180) day
period.

        5. Issue Tax. The issuance of certificates for shares of Stock upon the
exercise of the Warrant shall be made without charge to the Holder of the
Warrant for any issue tax (other than any applicable income taxes) in respect
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 certificate in a name other than that of the then Holder of the
Warrant being exercised.

        6. Closing of Books. The Company will at no time close its transfer
books against the transfer of any warrant or of any shares of Stock issued or
issuable upon the exercise of any warrant in any manner which interferes with
the timely exercise of this Warrant.

        7. No Voting or Dividend Rights; Limitation of Liability. Nothing
contained in this Warrant shall be construed as conferring upon the holder
hereof the right to vote or to consent or to receive notice as a shareholder of
the Company or any other matters or any rights whatsoever as a shareholder of
the Company. No dividends or interest shall be payable or accrued in respect of
this Warrant or the interest represented hereby or the shares purchasable
hereunder until, and only to the extent that, this Warrant shall have been
exercised. No provisions hereof, in the absence of affirmative action by the
holder to purchase shares of Stock, and no mere enumeration herein of the rights
or privileges of the holder hereof, shall give rise to any liability of such
holder for the Stock Purchase Price or as a shareholder of the Company, whether
such liability is asserted by the Company or by its creditors.

        8. Warrants Transferable. Subject to compliance with applicable federal
and state securities laws, this Warrant and all rights hereunder are
transferable, in whole or in portions not less than 10,000 shares, without
charge to the holder hereof (except for transfer taxes), upon surrender of this
Warrant properly endorsed. Each taker and holder of this Warrant, by taking or
holding the same, consents and agrees that this Warrant, when endorsed in blank,
shall be deemed negotiable, and that the holder hereof, when this Warrant shall
have been so endorsed, may be treated by the Company, at the Company's option,
and all other persons dealing with this Warrant as the absolute owner hereof for
any purpose and as the person entitled to exercise the rights represented by
this Warrant, or to the transfer hereof on the books of the Company any notice
to the contrary notwithstanding; but until such transfer on such books, the
Company may treat the registered owner hereof as the owner for all purposes.

        9. Modification and Waiver. This Warrant and any provision hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the Company and the Holder.

        10. Notices. Any notice, request or other document required or permitted
to be given or delivered to the holder hereof or the Company shall be delivered
or shall be sent by certified mail, postage prepaid, to each such holder at its
address as shown on the books of the Company or to the Company at the address
indicated therefor in the first paragraph of this Warrant or such other address
as either may from time to time provide to the other.

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<PAGE>   7

        11. Binding Effect on Successors. This Warrant shall be binding upon any
corporation succeeding the Company by merger, consolidation or acquisition of
all or substantially all of the Company's assets. All of the obligations of the
Company relating to the Stock issuable upon the exercise of this Warrant shall
survive the exercise and termination of this Warrant. All of the covenants and
agreements of the Company shall inure to the benefit of the successors and
assigns of the holder hereof.

        12. Descriptive Headings and Governing Law. The description headings of
the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. This Warrant shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of California.

        13. Lost Warrants. The Company represents and warrants to the Holder
hereof that upon receipt of evidence reasonably satisfactory to the Company of
the loss, theft, destruction, or mutilation of this Warrant and, in the case of
any such loss, theft or destruction, upon receipt of an indemnity reasonably
satisfactory to the Company, or in the case of any such mutilation upon
surrender and cancellation of such Warrant, the Company, at its expense, will
make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen,
destroyed or mutilated Warrant.

        14. Fractional Shares. No fractional shares shall be issued upon
exercise of this Warrant. The Company shall, in lieu of issuing any fractional
share, pay the holder entitled to such fraction a sum in cash equal to such
fraction multiplied by the then effective Stock Purchase Price.

        IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed by its officers, thereunto duly authorized this ____ day of ____, 19__.

                                    GREYSTONE TECHNOLOGY, INCORPORATED
                                    a California corporation

                                    By:
                                       -----------------------------------------
                                            Richard A. Smith,
                                    Its:    Chief Executive Officer

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EXHIBIT A

                                SUBSCRIPTION FORM

                                                  Date: _________________, 19___

GREYSTONE TECHNOLOGY, INCORPORATED
4950 Murphy Canyon Road
San Diego, CA  92123
Attn:  President

Gentlemen:

        The undersigned hereby elects to exercise the warrant number ____ issued
        to it by GREYSTONE TECHNOLOGY, INCORPORATED (the "Company") and dated
        __________, 1999 (the "Warrant") and to purchase thereunder
        __________________________________ shares of the Common Stock of the
        Company (the "Shares") at a purchase price of $____) per Share or an
        aggregate purchase price of __________________________________ Dollars
        ($__________) (the "Purchase Price").

        Pursuant to the terms of the Warrant the undersigned has delivered the
Purchase Price herewith in full in cash or by certified check or wire transfer.
The undersigned also makes the representations set forth on Exhibit B attached
to the Warrant.

                                            Very truly yours,

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

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EXHIBIT B

                             TO WARRANT CERTIFICATE

THIS AGREEMENT MUST BE COMPLETED, SIGNED AND RETURNED TO GREYSTONE TECHNOLOGY,
INCORPORATED ALONG WITH THE SUBSCRIPTION FORM BEFORE THE STOCK ISSUABLE UPON
EXERCISE OF THE WARRANT CERTIFICATE NUMBER _____ DATED _______________ WILL BE
ISSUED.

                         _____________________, 19_____

GREYSTONE TECHNOLOGY, INCORPORATED
4950 Murphy Canyon Road
San Diego, CA  92123
Attention:  President

        The undersigned, _________________________ ("Purchaser"), intends to
acquire up to ______________ shares of the Common Stock (the "Stock") of
GREYSTONE TECHNOLOGY, INCORPORATED (the "Company") from the Company pursuant to
the exercise or conversion of a certain Warrant to purchase Stock held by
Purchaser. The Stock will be issued to Purchaser in a transaction not involving
a public offering and pursuant to an exemption from registration under the
Securities Act of 1933, as amended (the "1933 Act") and applicable state
securities laws. In connection with such purchase and in order to comply with
the exemptions from registration relied upon by the Company, Purchaser
represents, warrants and agrees as follows:

        Purchaser is acquiring the Stock for its own account, to hold for
investment, and Purchaser shall not make any sale, transfer or other disposition
of the Stock in violation of the 1933 Act or the General Rules and Regulations
promulgated thereunder by the Securities and Exchange Commission (the "SEC") or
in violation of any applicable state securities law.

        Purchaser has been advised that the Stock has not been registered under
the 1933 Act or state securities laws on the ground that this transaction is
exempt from registration, and that reliance by the Company on such exemptions is
predicated in part on Purchaser's representations set forth in this letter.

        Purchaser has been informed that under the 1933 Act, the Stock must be
held indefinitely unless it is subsequently registered under the 1933 Act or
unless an exemption from such registration (such as Rule 144) is available with
respect to any proposed transfer or disposition by Purchaser of the Stock.
Purchaser further agrees that the Company may refuse to permit Purchaser to
sell, transfer or dispose of the Stock (except as permitted under Rule 144)
unless there is in effect a registration statement under the 1933 Act and any
applicable state securities laws covering such transfer, or unless Purchaser
furnishes an opinion of counsel reasonably satisfactory to counsel for the
Company, to the effect that such registration is not required.

        Purchaser also understands and agrees that there will be placed on the
certificate(s) for the Stock, or any substitutions therefor, a legend stating in
substance:

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<PAGE>   10

               "The shares represented by this certificate have not been
        registered under the Securities Act of 1933, as amended (the "Securities
        Act"), or any state securities laws. These shares have been acquired for
        investment and may not be sold or otherwise transferred in the absence
        of an effective registration statement for these shares under the
        Securities Act and applicable state securities laws, or an opinion of
        counsel satisfactory to the Company that registration is not required
        and that an applicable exemption is available."

        Purchaser has carefully read this letter and has discussed its
requirements and other applicable limitations upon Purchaser's resale of the
Stock with Purchaser's counsel.

                                            Very truly yours,

                                            Name of Purchaser:

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

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

                                    Page 10<PAGE>   1
                                                                    EXHIBIT 10.4

================================================================================

                                      1991

                                STOCK OPTION PLAN

                                       OF

                         THE GREYSTONE TRADING COMPANY,

                            A CALIFORNIA CORPORATION

                             DATED: AUGUST 16, 1991

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>           <C>                                                           <C>
ARTICLE 1     Purpose; Definition of Company and
              Other Terms ................................................   1

              1.1 Purpose ................................................   1
              1.2 Definition of Company; Subsidiary ......................   2
              1.3 Terminology ............................................   2

ARTICLE 2     Stock Subject to the Plan ..................................   2

              2.1 Type of Stock; Number of Shares. .......................   2
              2.2 Unexercised Shares .....................................   3

ARTICLE 3     Eligibility ................................................   3

ARTICLE 4     Administration .............................................   4

              4.1 Executive Committee ....................................   4
              4.2 Authority of Executive Committee .......................   5
              4.3 Effectuation of Plan by Company ........................   7

ARTICLE 5     Grant of Options ...........................................   7

              5.1 Option Agreements ......................................   7
              5.2 Option Date ............................................   8
              5.3 Acknowledgments, Warranties and
              Representations in Option Agreements .......................   8

ARTICLE 6     Terms and Conditions for options ...........................   9

              6.1    Continued Employment ................................   9
              6.2    Option Price ........................................   9
              6.3    Price Determination .................................  10
              6.4    Exercise of Option; Payment for Shares ..............  10
              6.5    Term of Options; Option Period ......................  10
              6.6    Option Exercise Period ..............................  11
              6.7    Non-Transferability of Option .......................  11
              6.8    Limitations on Exercise; Termination of Employment ..  11
              6.9    Accumulation Rights .................................  12
              6.10   Minimum Share Purchase ..............................  13
              6.11   ISO Limit of $100,000 ...............................  13
              6.12   ISO to Employee Owning More Than
                     10% of Company Stock ................................  13
              6.13   Employee Holding Period .............................  13
              6.14   Retirement of Employee. .............................  13
              6.15   Death of Employee ...................................  14
              6.16   Disability of Employee ..............................  14
              6.17   Options of Employee Not Exercisable
                     at Termination ......................................  14
</TABLE>

                                     (i)
<PAGE>   3

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>           <C>                                                           <C>
                                                                            Page
              6.18   Failure of Retired, Deceased or
                     Disabled Optionee to Exercise Option ................  15
              6.19   Ten Year Exercise Limitation ........................  15
              6.20   Grantee Under Company Stock Bonus Plan ..............  15
              6.21   Identification of Type of Stock Option ..............  15
              6.22   Withholding Taxes ...................................  15

ARTICLE 7     Time Limit on Granting of Options ..........................  15

ARTICLE 8     Adjustments by Reason of Recapitalization,
              Stock Split-Ups, Etc .......................................  16

              8.1    Effect of Options on Company's Rights ...............  16
              8.2    Recapitalization ....................................  16
              8.3    Reorganization ......................................  17
              8.4    Stock Dividends .....................................  18
              8.5    Price Adjustment ....................................  18
              8.6    Adjustments .........................................  19

ARTICLE 9     Right to Amend, Suspend or Terminate
              the Plan ...................................................  19

ARTICLE 10    No Obligation to Exercise Option ...........................  19

ARTICLE 11    Use of Proceeds ............................................  20

ARTICLE 12    Modification, Extension and Renewal and
              Cancellation of Options ....................................  20

ARTICLE 13    Compliance with Laws .......................................  20
              13.1   Securities Laws .....................................  20
              13.2   Liability of Company; Compliance
              with Law ...................................................  21

ARTICLE 14    Provisions in Option Agreements ............................  21

ARTICLE 15    Indemnification of Committee ...............................  22

ARTICLE 16    Financial Information ......................................  22

ARTICLE 17    Attorneys' Fees ............................................  23

ARTICLE 18    Governing Law ..............................................  23

ARTICLE 19    Effective Date Of The Plan .................................  23
</TABLE>

                                      (ii)

<PAGE>   4

                                      1991

                                STOCK OPTION PLAN

                                       OF

                         THE GREYSTONE TRADING COMPANY,
                            A CALIFORNIA CORPORATION

                                    ARTICLE 1

                 PURPOSE; DEFINITION OF COMPANY AND OTHER TERMS

        1.1 PURPOSE. The purpose of this Stock Option Plan (the "Plan") is to
aid in maintaining and developing management for The GreyStone Trading Company,
a California corporation (the "Company"), which will best advance the long range
interests and performance of the Company. The Plan will afford present and
future executives, directors, other employees and independent contractors an
opportunity to secure a substantial stock ownership in the Company through the
grant of incentive stock options (as defined herein) and/or options which are
not incentive stock options, both of which are referred to herein as "Options".
Executives and employees will thus be encouraged to acquire a permanent stake in
the prosperity of the Company, and the interest and outlook of an owner with
respect to the Company. The Plan will also permit the Company to compete with
other organizations offering similar plans in obtaining and retaining the
services of executives and other key personnel whom the Company desires to
employ. since a Plan participant may be required to remain in the services of
the Company for at least five years in order to obtain its full benefits, the
Plan is also an inducement to participants to remain with the Company. The Plan
will also permit the Company to compete with other organizations in obtaining
and retaining the services of selected individuals as

<PAGE>   5

directors, as well as obtaining and retaining selected individuals or
organizations as independent contractors in circumstances under which the
Company might otherwise be at a competitive disadvantage in attempting to obtain
those services.

        1.2 DEFINITION OF COMPANY; SUBSIDIARY. The word "Company," when used in
the Plan with reference to employment or where otherwise applicable (e.g.
Section 6.12), shall include a "parent corporation" and/or a "subsidiary
corporation" of the Company as those terms are respectively defined in Sections
425(e) and 425(f) of the Internal Revenue Code of 1986, as amended (the "Code").

        1.3 TERMINOLOGY. If the context so requires, all personal pronouns used
in this Plan, whether used in the masculine, feminine, or neuter gender, shall
include all other genders, and the singular shall include the plural, and vice
versa. Titles of sections and subsections are for convenience only, and shall
neither limit nor amplify the provisions of the Plan itself, and all references
herein to sections or subsections shall refer to the corresponding section or
subsection of this Plan, unless specific reference is made to such sections or
subsections of another document or instrument.

                                    ARTICLE 2

                            STOCK SUBJECT TO THE PLAN

        2.1 TYPE OF STOCK; NUMBER OF SHARES. The shares of stock to be sold
pursuant to the exercise of Options granted under this Plan shall be shares of
authorized but unissued common stock of the Company (hereinafter sometimes
referred to as the "Shares"). The total number of Shares which may be purchased
pursuant to the exercise of Options granted under this Plan shall not, except as

                                      -2-
<PAGE>   6

provided in Article 8 hereof or by shareholder approval, exceed 500,000 in the
aggregate.

         2.2 UNEXERCISED SHARES. In the event that an Option granted under the
Plan expires, is cancelled, or is terminated unexercised as to any Shares
subject thereto, such Shares subject to the unexercised portion of such Option
may again be subject to an Option granted under this Plan.

                                    ARTICLE 3

                                   ELIGIBILITY

        Options will be granted from time to time under the Plan only to:

        3.1 Employees of the Company (including officers and assistant
officers), all of whom are referred to herein as "Employees";

        3.2 Selected members of the Board of Directors of the Company
("Directors"), whether or not employees of the Company and;

        3.3 Certain persons or organizations who are independent contractors,
who have substantial business contacts with the Company which would give rise to
familiarity with the business and financial aspects of the Company, and who
render to the Company services of special importance to the Company in the
management, operation or development of its business (collectively, "Independent
Contractors"). Any grantee may hold more than one Option, but only on the terms
and subject to the restrictions contained herein. Such Employees, Directors and
Independent Contractors (referred to herein collectively as "Participants" or
"Optionees, 11 and individually as a "Participant" or "Optionee") will be
selected from time to time during the period when the Plan is in operation by
the Executive Committee of the Company which will also determine the number of

                                      -3-
<PAGE>   7

Shares which each Participant shall be entitled to purchase under his Option.

                                    ARTICLE 4

                                 ADMINISTRATION

        4.1 EXECUTIVE COMMITTEE. The Plan may be administered by an Executive
Committee (the "Committee") appointed from time to time by the Board of
Directors of the Company (the "Board") from among its members. The Committee
shall consist of not less than two members. The Board may from time to time
remove members from the Committee or add members thereto. Vacancies in the
Committee, however caused, shall be filled by the Board. The Committee shall
select one of its members as its Chairman and shall hold its meetings at such
time and places as it may determine. A majority of the Committee shall
constitute a quorum, and the acts of a majority of the members present at any
meeting at which a quorum is present, or acts approved in writing by all the
members of the Committee, shall be the valid acts of the Committee; provided,
however, that no member of the Committee shall vote upon or approve the granting
of any option hereunder to such member. Notwithstanding the foregoing, if a
Committee is not selected by the Board, or at the Board's discretion, the Board
may itself perform the functions of said Committee; provided, however, that no
member of the Board shall vote upon or approve the granting of any Option to
such member. In the event the Board does not select a Committee, the term
"Committee" as used herein shall be deemed to refer to the Board acting in such
capacity.

                                      -4-
<PAGE>   8

        4.2 AUTHORITY OF EXECUTIVE COMMITTEE. Subject to the express provisions
of the Plan, the Committee shall have the sole authority, in its absolute
discretion, to:

            4.2.1 determine and designate from time to time which Employees,
        Directors and Independent Contractors to whom Options to purchase Shares
        shall be granted;

            4.2.2 grant to Employees Options which are "Incentive Stock Options"
        ("ISOs") within the meaning of Section 422A of the Code;

            4.2.3 grant to Employees, Directors and Independent Contractors
        Options which are not Incentive Stock Options ("non-ISOs");

            4.2.4 determine which Employees shall be granted only ISOs, which
        Employees, Directors and Independent Contractors of the Company shall be
        granted only options which are non- and which Employees shall be granted
        both and in what ratio;

            4.2.5 determine the number of Shares to be subject to Options
        (sometimes "Option Shares") granted hereunder (subject, however, to the
        limitations specified in Section 2. 1 and Article 8), and the time or
        times when such options shall be granted;

            4.2.6 determine the option or exercise price of the Option Shares
        (subject, however, to the limitations specified in Section 6.2);

            4.2.7 determine the time or times when each Option becomes
        exercisable, and the duration of the exercise period;

                                      -5-
<PAGE>   9

            4.2.8 prescribe, amend and rescind the form or forms of the Option
        Agreements (as defined in Section 5. 1) under the Plan (which shall be
        consistent with the Plan but need not be identical);

            4.2.9 adopt, amend and rescind such rules and regulations as in its
        opinion may be advisable in the administration of the Plan (subject,
        however, to the limitations specified in Article 9);

            4.2.10 construe and interpret the Plan, the rules and regulations
        and the Option Agreements under the Plan, and to make all other
        determinations deemed necessary or advisable for the administration of
        the Plan; provided, however, that it is intended that ISOs granted under
        the Plan will constitute "Incentive Stock Options" within the meaning of
        Section 422A of the Code. Any provision of the Plan relating to ISOs
        shall be construed so that such ISOs comply with the requirements of
        Sections 421, 422A, and 425 of the Code and the Regulations of the
        Commissioner of Internal Revenue issued thereunder, and the Plan, as to
        such ISOs, shall be administered so as to comply with the requirements
        of these Sections and their implementing Regulations; and

            4.2.11 place such restrictions on sale or other disposition of the
        Shares purchased upon exercise of an Option as may be determined by the
        Committee.

All decisions, determinations and interpretations by the Committee of the terms
of the Plan, and the agreements and other instrument created pursuant to the
Plan, made in good faith shall be final, binding, and conclusive on all
Optionees for all purposes.

                                      -6-
<PAGE>   10

        4.3 EFFECTUATION OF PLAN BY COMPANY. The Company shall effect the grant
of Options under the Plan to Employees, Directors and Independent Contractors of
the Company in accordance with the determinations made by the Committee, by the
execution of agreements with Optionees, and any other necessary instruments in
writing, in form approved by the Committee and conforming to the provisions of
the Plan. The Committee shall, from time to time, authorize and direct the
issuance and sale of Shares of the Company pursuant to such options as and when
the same may be exercised, in whole or in part, in accordance with their
respective terms.

                                   ARTICLE 5

                                GRANT OF OPTIONS

        5.1 OPTION AGREEMENTS. Upon the Committee's determination to grant an
Option to an Optionee, the Committee shall promptly advise the Optionee of its
action, the number of Shares subject to the Option so granted and the price to
be paid for the Shares upon exercise of the Option. If the Optionee has not
previously entered into an agreement with the Company for the grant of such
option which complies with the terms and conditions of this Plan, then within
one month from the date of the grant of such Option the Optionee shall enter
into an agreement for the grant of such Option in such form as the Committee
determines which complies with the terms and conditions of this Plan (an "Option
Agreement") . In the event action taken by the Committee is by written consent
of its members, the action or approval of the Committee shall be deemed to be
taken at the time the last executing member signs the consent unless such action
specifies a later time.

                                      -7-
<PAGE>   11

        5.2 OPTION DATE. Unless otherwise specified in an option Agreement, the
date of grant or "Option Date" of any option shall be deemed to be the date on
which the grant of such option shall be approved by the Committee or such later
date as the Committee shall, at the time of such approval, fix as the date of
grant thereof.

        5.3 ACKNOWLEDGMENTS, WARRANTIES AND REPRESENTATIONS IN OPTION
AGREEMENTS. As a condition to the exercise of the Option, the Optionee may be
required in said Option Agreement to make certain acknowledgments and
representations regarding the purchase of Shares, including but not limited to:

            5.3.1 In the case of ISOs, although the Company has made a good
        faith attempt to qualify the Options as qualified stock options within
        the meaning of Sections 421, 422A and 425 of the Code, the Company does
        not warrant that ISOs granted pursuant to the Plan constitute "Qualified
        Stock Options" within the meaning of these sections, or that the
        transfer of stock acquired pursuant to such options will be treated for
        federal income tax purposes as specified in Section 421 of the Code.

            5.3.2 The Optionee will, from time to time, notify the Company in
        writing of each disposition (including a sale, exchange, gift or a
        transfer of legal title) of Shares acquired pursuant to the exercise of
        an option made by such Optionee within three years after acquiring the
        Shares. Such notification shall be in writing and shall be made within
        15 days after each such disposition is made.

            5.3.3 The Optionee and his transferees have no rights as a
        shareholder with respect to any Shares covered by the Plan

                                      -8-
<PAGE>   12

        until the date of the issuance of a share certificate to him for such
        Shares. No adjustment shall be made for dividends (ordinary or
        extraordinary, whether in cash, securities or other property) or
        distributions or other rights for which the record date is prior to the
        date such share certificate is issued, except as provided in Article 8
        of the Plan.

            5.3.4 In the case of non-ISOs (and their exercise), such Optionees
        shall not make an election pursuant to Section 83(b) of the Code without
        the prior written approval of the Committee. A breach of this covenant
        shall be deemed for purposes of the Plan as a material breach and the
        breaching Optionee shall be deemed to have intentionally committed an
        act materially inimical to the interests of the Company and he shall be
        subject to the provisions of Section 6.8.1 of the Plan.

                                    ARTICLE 6

                        TERMS AND CONDITIONS FOR OPTIONS

        6.1 CONTINUED EMPLOYMENT. Nothing contained in the Plan or in any Option
granted pursuant to the Plan shall confer upon any Optionee any right to
continue in the employment of the Company, or interfere in any way with the
right of the Company to terminate his employment at any time, with or without
cause.

        6.2 OPTION PRICE. Subject to Section 6.12, each Option granted pursuant
to the Plan shall have a stated exercise price or "Option Price" for each Share
subject to the Option, which price shall be not less than the fair market value
per Share on the option Date, as determined by the Committee in good faith;
provided, however, that a non-ISO may be granted at such lesser exercise price

                                      -9-
<PAGE>   13

(but not less than 85% of the fair market value per share) as may be determined
by the Committee consistent with applicable legal requirements.

        6.3 PRICE DETERMINATION. In making its Option Price determination, the
Committee may use any reasonable valuation method, taking into consideration
prices at which shares of the Company's Common Stock have been recently sold and
purchased, the number of shares traded, and other relevant factors as determined
by the Committee.

        6.4 EXERCISE OF OPTION; PAYMENT FOR SHARES. Shares may be purchased
pursuant to an Option granted under the Plan only upon receipt by the Company of
notice in writing from the Optionee of his intention to purchase and upon such
other terms as may be required by his Option Agreement. Upon the date(s)
specified for the completion of the purchase of his Shares, an Employee who is
purchasing Shares pursuant to an ISO, or an Employee, Director or Independent
Contractor purchasing Shares pursuant to a non-ISO, shall pay the Company in
United States Dollars the full purchase price of the Shares purchased; provided,
however, that, subject to review by Company's counsel, an Employee or Director
who is purchasing Shares pursuant to a non-ISO may (subject to Section 13.1
hereof and the terms of his Option agreement) purchase Shares under terms which
may include forms of payment allowed under California Corporations Code Section
408(a).

        6.5 TERM OF OPTIONS; OPTION PERIOD. Subject to Section 6.12, each option
granted pursuant to this Plan shall have a term of not more than 10 years from
the Option Date (the "Option Period").

                                      -10-
<PAGE>   14

        6.6 OPTION EXERCISE PERIOD. Each Optionee to whom an Option has been
granted shall have the right to purchase Shares, at any time, or from time to
time, during the Option Period in accordance with the vesting schedule and other
terms of his Option Agreement. Each Option Agreement shall include a vesting
schedule which sets out the maximum percentage or number of Shares which such
Optionee may purchase in any installment period. The schedule shall provide that
vesting shall occur at the rate of at least 20% per year over a five year
period.

            6.6.1 An Employee Optionee shall be credited with a full year of
        continuous employment by the Company during the Option Period only on an
        anniversary date of his Option Date, and only if on such anniversary
        date he is and has been continuously employed by the Company since the
        Option Date.

            6.6.2 Absence of an Employee Optionee on duly granted leave or due
        to sickness for a combined period of not more than 90 days shall not be
        deemed to be an interruption of the continuity of his employment for
        purposes of this Plan.

        6.7 NON-TRANSFERABILITY OF OPTIONS. No Option shall be transferable by
the Optionee other than by will or, if he dies intestate, by the laws of descent
and distribution of the state of his domicile at the time of his death. All
Options shall be exercisable during an Optionee's lifetime only by such
Optionee.

        6.8 LIMITATIONS ON EXERCISE: TERMINATION OF EMPLOYMENT. Subject to the
provisions of this Plan, the exercise of Options may be limited in whole or in
part for any period or periods of time as specified in each Option Agreement,
and any Option may be exercised to the extent it is exercisable in whole at any
time, or in part

                                      -11-
<PAGE>   15

from time to time, during the option Period (as defined in Section 6.5);
provided, however, that:

            6.8.1 If the Committee determines that the Optionee has committed an
        act materially inimical to the interests of the Company, all of the
        Optionee's rights to purchase Shares not yet purchasable pursuant to his
        Option (i. e. non-vested options) shall cease and terminate as of the
        date of such act; and

            6.8.2 Except as provided in Sections 6.14, 6.15 and 6.16 below, no
        Option granted to an Employee may be exercised more than 30 days after
        such Optionee's employment with the Company has been terminated for any
        reason, and within such 30 day period said Optionee may exercise his
        option only to the extent the same was exercisable on his date of
        termination. If during said 30 day period the Optionee shall die, his
        executors, administrators, legatees or distributees shall have an
        additional period ending six months from the date of death or
        termination of the Option by its terms, whichever occurs first, within
        which to exercise the option. The Committee shall determine what
        constitutes termination of employment, including whether an authorized
        leave of absence, or absence for military or governmental service
        constitutes termination of employment for purposes of the Plan, which
        determination shall be final and conclusive.

        6.9 ACCUMULATION RIGHTS. Unless otherwise provided in an Option
Agreement, to the extent Option Shares are not exercised in any installment
period, such Option Shares shall accumulate and be

                                      -12-
<PAGE>   16

exercisable in whole or in part in any subsequent installment period.

        6.10 MINIMUM SHARE PURCHASE. Each Option Agreement shall provide that
not less than a certain number of Shares (e.g. 10 shares) may be purchased at
any one time, unless the Shares purchased are the total number purchasable at
the time.

        6.11 ISO LIMIT OF $100,000. The aggregate fair market value (determined
at the Option Date) of the Shares with respect to which ISOs of the Company are
exercisable for the first time by an Optionee during any calendar year shall not
exceed $100,000.

        6.12 ISO TO EMPLOYEE OWNING MORE THAN 10% OF COMPANY STOCK. No ISO shall
be granted to any Employee who, at the time the ISO is granted, owns stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company unless, at the time such ISO is granted, the Option Price
is at least 110% of the fair market value of the Shares subject to the ISO and
such ISO by its terms is not exercisable after the expiration of five years from
the date such ISO is granted.

        6.13 EMPLOYEE HOLDING PERIOD. Except to the extent specifically waived
by the Company in the Option Agreement reflecting an option granted under this
Plan, each Employee to whom an option is granted under the Plan shall, as
consideration therefore and as a condition of its grant, remain in the
continuous employ of the Company for at least one year from the date of grant
before he may exercise any part of the Option.

        6.14 RETIREMENT OF EMPLOYEE. In the event the Company gives written
consent for an Employee's retirement, such Employee's Option (if granted to him
as an Employee) may be exercised by him at any

                                      -13-
<PAGE>   17

time within the period ending with the earlier of the expiration date of his
Option or three months after the date of his retirement, to the extent it was
exercisable on the date of his retirement.

        6.15 DEATH OF EMPLOYEE. Upon the death of an Employee (while still
employed by the Company), the executor or administrator of his estate, or the
person to whom his Option shall have been transferred pursuant to his will or
the laws of descent and distribution may, within the period ending with the
earlier of the expiration date of his Option or one year from the date of the
Optionee's death, exercise the Employee's Option to the extent it was
exercisable on his date of death.

        6.16 DISABILITY OF EMPLOYEE. In the event of the termination of his
employment by the Company due to the disability (within the meaning of section
105(d)(4) of the Code) of an Optionee who was granted his Option as an Employee,
the disabled Optionee (or a legal representative who is a mere custodian of the
Optionee's property, stands in a fiduciary relationship to such Optionee, and is
subject to court supervision) may, within the earlier of the period ending with
the expiration date of his Option or one year after the termination of the
Optionee's employment with the Company, exercise said Option to the extent it
was exercisable on the date of said termination of employment.

        6.17 OPTIONS OF EMPLOYEE NOT EXERCISABLE AT TERMINATION. Notwithstanding
anything herein to the contrary, no Option granted to an Employee which is not
exercisable at the termination of such Participant's employment with the Company
shall thereafter become exercisable, regardless of the reason for such
termination.

                                      -14-
<PAGE>   18

        6.18 FAILURE OF RETIRED, DECEASED OR DISABLED OPTIONEE TO EXERCISE
OPTION. To the extent that any Option of a retired, deceased, or disabled
Optionee, who was granted his option as an Employee, is not exercised within the
limited periods specified in Sections 6.14, 6.15 and 6.16, all further rights to
purchase Shares pursuant to such Option shall cease and terminate as of the
expiration of such period.

        6.19 TEN YEAR EXERCISE LIMITATION. Notwithstanding anything herein to
the contrary, no Option shall be exercised after the date 10 years from the
Option Date of such Option.

        6.20 GRANTEE UNDER COMPANY STOCK BONUS PLAN. An Optionee who has
received bonus shares under any stock bonus plan of the Company will not by
reason thereof be ineligible to receive an option pursuant to this Plan.

        6.21 IDENTIFICATION OF TYPE OF STOCK OPTION. Options which are ISOs
shall be clearly identified as Incentive Stock Options, and options which are
non-ISOs shall be clearly identified as not Incentive Stock Options.

        6.22 WITHHOLDING TAXES. Whenever Shares are to be issued under the Plan,
the Company shall have the right to require the recipient to remit to the
Company an amount sufficient to satisfy federal, state and local withholding tax
requirements prior to the delivery of any certificate or certificates for such
Shares.

                                   ARTICLE 7

                       TIME LIMIT ON GRANTING OF OPTIONS

No Options may be granted under the Plan subsequent to 10 years after the date
this Plan became effective. Any Option outstanding under the Plan at the time of
its termination shall remain in effect

                                      -15-
<PAGE>   19

until it shall have been exercised, or shall have expired or otherwise
terminated pursuant to the provisions of this Plan.

                                    ARTICLE 8

                            ADJUSTMENTS BY REASON OF
                     RECAPITALIZATION, STOCK SPLIT-UPS, ETC.

        8.1 EFFECT OF OPTIONS ON COMPANY'S RIGHTS. The grant of an option
pursuant to the Plan shall not affect in any way the right or power of the
Company to make adjustments, reclassifications, reorganizations or changes of
its capital or business structure, or to merge, or to consolidate, or to
dissolve, liquidate, sell or transfer all or any part of its business or assets.

        Except as expressly provided in this Article 8, an Optionee shall have
no other rights by reason of any subdivision or consolidation of shares of stock
of any class or the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class or by reason of any
dissolution, liquidation, merger or consolidation or spin-off of assets or stock
of another corporation. Any issue by the Company of shares of stock of any class
or securities convertible into shares of stock of any class shall not affect,
and no adjustment by reason thereof shall be made with respect to, the number or
price of Shares subject to any option.

        8.2 RECAPITALIZATION. In the event there are splits, subdivisions,
combinations or reclassifications of the Company's common stock subsequent to
the effective date of this Plan, the number of Shares reserved for issuance
pursuant to the Plan, including the shares issuable upon the exercise of
outstanding

                                      -16-
<PAGE>   20

Options, shall be increased or decreased proportionately, as the case may be, to
appropriately reflect such event.

        8.3 REORGANIZATION.

            8.3.1 In case the Company is merged or consolidated with another
        corporation and the Company is the surviving corporation, each
        outstanding Option, whether or not then exercisable, shall pertain to
        and apply to the securities to which a holder of the number the Option
        Shares subject to such option would otherwise have been entitled.

            8.3.2 Subject to any required action by the Company's shareholders,
        in case the Company is merged or consolidated with another corporation
        and the Company is not the surviving corporation, or in case the
        property or stock of the Company is acquired by another corporation, or
        in case of a separation, reorganization or liquidation of the Company,
        the Board, or the board of directors of any corporation assuming the
        obligations of the Company hereunder, shall, in its sole discretion as
        to each outstanding Option, either: (a) make appropriate provision for
        protection of such Option by the substitution on an equitable basis of
        appropriate stock of the Company, or of the merged, consolidated or
        otherwise reorganized corporation which will be issuable in respect to
        the stock of the Company, provided only that the excess of the aggregate
        fair market value of the shares subject to such Option immediately after
        such substitution over the purchase price thereof is substantially the
        same as, but in no event more than, the excess of the aggregate fair
        market value of the Option Shares subject to such Option immediately
        before such substitution

                                      -17-
<PAGE>   21

over the purchase price thereof; or (b) upon written notice to the holder of
such Option, provide that such option must be exercised within a specified
period not exceeding 60 days of the date of such notice to the extent such
option is exercisable on the last day of such specified period or it will be
terminated. Any portion of such Option which is not exercisable on the last day
of such specified period will be terminated and any portion of such Option which
is not exercised on or before said last day shall terminate on said last day.

        8.4 STOCK DIVIDENDS. In the event the Company shall pay any dividend in
common shares of the Company upon the common stock of the Company during the
period of any Option, the number of Shares then subject to such option and the
number of Shares reserved for issuance pursuant to the Plan but not yet subject
to any Option shall be adjusted by adding to each such Share the shares of stock
which would have been distributed as a stock dividend thereon had such Share
been outstanding at the record date for the payment of the stock dividend.

        8.5 PRICE ADJUSTMENT. If, after the granting of an Option to any
Optionee hereunder, a substitution or an adjustment shall be required to be made
under this Article 8 in the number or kind of shares of stock or other
securities then subject to such option, the price per unit payable by the
Optionee for shares or securities which he may thereafter be entitled to
purchase under such option shall be concurrently adjusted so that the aggregate
purchase price of all shares or securities not theretofore purchased under such
option will be apportioned ratably and equitably to and among the

                                      -18-
<PAGE>   22

substituted or adjusted number or kind of shares of stock or other securities.

        8.6 ADJUSTMENTS. The foregoing adjustments and the manner of application
of the foregoing provisions shall be determined by the Committee in its sole
discretion. Any such adjustment may provide for the elimination of any
fractional share which might otherwise become subject to an option.

                                    ARTICLE 9

                  RIGHT TO AMEND, SUSPEND OR TERMINATE THE PLAN

        The Board shall have the right to amend, suspend or terminate the Plan
at any time; provided, however, that no such action shall affect or in any way
impair the rights of an Optionee under any option theretofore granted under the
Plan without the consent of the Optionee or the transferee of the Option, and
provided further that no such action, without approval of the Company's
shareholders, may: (a) increase the total number of shares of stock which may be
sold or transferred pursuant to Options granted under the Plan, except as
permitted pursuant to Article 8; (b) change the designation of class of persons
eligible to participate in the Plan; (c) decrease the minimum Option Price
specified in Article 6; (d) extend the maximum term of Options granted
hereunder; or (e) extend the term of the Plan.

                                   ARTICLE 10

                        NO OBLIGATION TO EXERCISE OPTION

        The granting of an Option shall impose no obligation on the recipient to
exercise such Option.

                                      -19-
<PAGE>   23

                                   ARTICLE 11

                                 USE OF PROCEEDS

        The proceeds received from the sale of Shares pursuant to the Plan shall
be used for general corporate purposes.

                                   ARTICLE 12

                           MODIFICATION, EXTENSION AND
                       RENEWAL AND CANCELLATION OF OPTIONS

        Subject to the terms and conditions and within the limitations of the
Plan, the Committee may (a) modify, extend or renew outstanding options granted
under the Plan; (b) accept the surrender or cancellation of outstanding Options
(to the extent not theretofore exercised); and (c) authorize the granting of new
options in substitution therefore (to the extent not theretofore exercised).
Notwithstanding the foregoing, however, no modification of an Option shall,
without the consent of the Optionee, alter or impair any rights or obligations
under any such Option theretofore granted under the Plan.

                                   ARTICLE 13

                              COMPLIANCE WITH LAWS

        13.1 SECURITIES LAWS. Each Option under the Plan shall be granted on
such terms and conditions, including investment intent, as are deemed advisable
by the Committee in order to comply with applicable federal, state and local
securities laws, rules and regulations. No Options shall be granted, and no
Shares shall be sold or issued upon the exercise of any option, unless and until
the issuance, as determined by the Committee, complies with any then applicable
requirements of the Securities and Exchange Commission, the California
Commissioner of Corporations, other regulatory

                                      -20-
<PAGE>   24

agencies having jurisdiction thereof and any securities exchanges upon which
stock of the Corporation may be listed.

        13.2 LIABILITY OF COMPANY; COMPLIANCE WITH LAW. The Company and the
members of the Committee shall be relieved from any liability for the
non-issuance or non-transfer, or any delay of issuance or transfer, of any
Shares subject to Options under the Plan which results from the inability of the
Company to comply with, or to obtain, or from any delay in obtaining from any
regulatory body having jurisdiction, all requisite authority to issue or
transfer Shares upon exercise of the options under the Plan, if counsel for the
Company deems such authority reasonably necessary for lawful issuance or
transfer of any such shares. Appropriate legends may be placed on the stock
certificates evidencing shares issued upon exercise of options to reflect such
transfer restrictions.

                                   ARTICLE 14

                         PROVISIONS IN OPTION AGREEMENTS

        The Option Agreements authorized under this Plan shall contain such
other provisions, including, without limitation, conditions and restrictions
upon the exercise of the Option and/or upon the sale or other disposition of the
Shares purchased upon the exercise of an Option, as the Committee shall deem
advisable in its absolute discretion (and which may be more restrictive as to
the Optionee than those herein); provided, however, that such provisions shall
contain in substance the terms and conditions set forth herein.

                                      -21-
<PAGE>   25

                                   ARTICLE 15

                          INDEMNIFICATION OF COMMITTEE

        In addition to such other rights of indemnification as they may have as
directors, the members of the Committee shall be indemnified by the Company
against the reasonable expenses, including attorneys' fees actually and
necessarily incurred in connection with the defense of any action, suit or
proceeding, or in the connection with any appeal therein, to which they or any
of them may be a party by reason of any action taken or failure to act under or
in connection with this Plan or agreements made hereunder, and against all
amounts paid by them in settlement thereof or in satisfaction of a judgment
therefore, provided such settlement is approved by independent legal counsel
selected by the Company, except in relation to matters as to which it shall be
adjudged in such action, suit or proceeding that such Committee member is liable
for gross negligence or willful misconduct in the performance of his duties;
provided further that within 60 days after institution of any such action, suit
or proceeding such Committee member shall, in writing, offer the Company the
opportunity, at its own expense, to handle and defend the same.

                                   ARTICLE 16

                              FINANCIAL INFORMATION

        The Company shall provide to each Optionee on an annual basis a copy of
the annual financial report prepared by the Company's independent certified
public accountants, or such other periodic financial report which conforms with
Section 260.140.41.2 of Title 10 of the California Code of Regulations.

                                      -22-
<PAGE>   26

                                   ARTICLE 17

                                 ATTORNEYS' FEES

        The prevailing party in any court action brought to interpret or enforce
any provision of this Plan or an Option Agreement shall be entitled to recover,
as an element of the costs of suit, and not as damages, an award of reasonable
attorneys' fees, to be fixed by the Court. Such award may be made as part of a
judgment by default or as part of a judgment after trial or after appeal.

                                   ARTICLE 18

                                  GOVERNING LAW

        This Plan shall be governed by the laws of the State of California.

                                   ARTICLE 19

                           EFFECTIVE DATE OF THE PLAN

        The Plan became effective when approved by the Board; provided, however,
that the holders of a majority of the outstanding capital stock of the Company
must approve the Plan within 12 months of the date the Plan was approved by the
Board.

Approved by the directors on: August 16, 1991
Approved by the shareholders on: August 16, 1991

                                      -23-

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