Document:

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                                                                   EXHIBIT 10.14
                               WARRANT AGREEMENT

        This Warrant Agreement ("Warrant Agreement") is made as of May _____,
1998, by and among General Automation, Inc., a Delaware corporation ("Company"),
Gregory A. Busch and David L. Keligian as Trustees of Lenawee Trust u/t/d
December 30, 1992 ("Lenawee"), Dito Caree Limited Partnership, a Nevada limited
partnership ("Dito Caree"), and Four JM, LLC, a California limited liability
company ("Four JM"). Company, Lenawee, Dito Caree, and Four JM are sometimes
hereinafter individually referred to as a "Party" or collectively referred to as
the "Parties."

        1.0 RECITALS.

               1.1 Company and Lenders have previously entered into the MOU,
pursuant to which Lenders agreed to make the Loan to Company, all as more fully
set forth in the MOU.

               1.2 Pursuant to the provisions of the MOU, as additional
consideration to Lenders for agreeing to make the Loan to Company, Company has
agreed to issue the Original Warrants to Lenders, and Company has also agreed
that if required pursuant to the provisions of this Warrant Agreement, the
Company shall issue the Additional Warrants to Lenders, all as more fully set
forth herein.

        NOW, THEREFORE, in consideration of the mutual covenants and terms set
forth herein and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Parties agree as follows:

        2.0 DEFINITIONS.

               2.1 "ACT" shall mean the Securities Act of 1933, as amended.

               2.2 "ADDITIONAL WARRANTS" shall mean the additional warrants to
be issued by the Company to Lenders' designees representing cumulatively the
right to acquire one hundred thousand (100,000) Shares of common stock of the
Company, pursuant to Section 3.4 herein.

               2.3 "CLOSING" shall mean the closing of the Loan and the issuance
of the Original Warrants, which shall occur on the Closing Date.

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               2.4 "CLOSING DATE" shall mean May 4, 1998, or such other date as
mutually agreed to by the Parties.

               2.5 "COMPANY" shall mean General Automation, Inc., a Delaware
corporation.

               2.6 "DEED OF TRUST" shall mean that certain Deed of Trust, of
even date herewith, granted by Company in favor of Lenders as security for the
Note.

               2.7 "DITO CAREE" shall mean Dito Caree Limited Partnership, a
Nevada limited partnership.

               2.8 "DUE DATE" shall mean the date that all amounts are due and
payable under the Note.

               2.9 "FOUR JM" shall mean Four JM, LLC, a California limited
liability company.

               2.10 "LENAWEE" shall mean Gregory A. Busch and David L. Keligian
as Trustees of Lenawee Trust u/t/d December 30, 1992.

               2.11 "LENDERS" shall mean, collectively, Dito Caree, Four JM and
Lenawee.

               2.12 "LOAN" shall mean that certain loan in the original
principal amount of Nine Hundred Thousand Dollars ($900,000.00), as evidenced by
the Note and secured by the Deed of Trust.

               2.13 "LOAN DOCUMENTS" shall collectively mean the Note, the Deed
of Trust, this Warrant Agreement, the Original Warrants, the Additional
Warrants, Loan Brokerage Agreement, and the investment representation letters of
the Lenders or their designees.

               2.14 "MOU" shall mean that certain Memorandum of Understanding
dated March 31, 1998, entered into between Company and the Lenders.

               2.15 "NOTE" shall mean that certain Secured Note, dated as of
even date herewith, executed by Company in favor of Lenders, a copy of which is
attached hereto as EXHIBIT "A".

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               2.16 "ORIGINAL WARRANTS" shall collectively mean three (3)
separate Warrants issued to each of the Lenders' designees (who are identified
on EXHIBIT "D" hereto and who will execute and deliver to the Company an
investment representation letter in the form attached hereto as EXHIBIT "C"), in
amounts designated by Lenders, representing cumulatively the right of Lenders to
acquire two hundred thousand (200,000) shares of common stock of the Company,
pursuant to the terms and conditions of this Warrant Agreement, in the form
attached hereto as EXHIBIT "B".

               2.17 "PARTIES" shall collectively mean Company, Dito Caree, Four
JM and Lenawee, and "Party" shall mean any of the foregoing individually.

               2.18 "PERSON" shall mean an individual, a partnership, a
corporation, a limited liability company, a limited liability partnership, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization, or a governmental entity (or any department, agency, or political
subdivision thereof).

               2.19 "SHARES" shall mean those shares of the Company's common
stock to be issued upon the exercise of the Original Warrants or the Additional
Warrants.

               2.20 "TARGET IRR" shall mean a minimum internal rate of return
from and after the Closing Date, through and including the Valuation Date, of
twenty percent (20%), when taking into consideration the interest received under
the Note, as well as the value of the Original Warrants as of the Valuation
Date, as determined pursuant to Section 3.3 herein.

               2.21 "TOTAL LOAN CONSIDERATION" shall have the meaning ascribed
in Section 3.3 herein.

               2.22 "VALUATION DATE" shall mean the date on which the value of
the Original Warrants is determined pursuant to in Section 3.3 herein, which
shall occur at the earlier of: (i) the Due Date of the Note, or (ii) the date
upon which all amounts due under the Note have been satisfied in full by
Company.

               2.23 "VOW" shall have the meaning ascribed to it in Section 3.3
hereof.

               2.24 "WARRANT AGREEMENT" shall mean this Warrant Agreement.

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        3.0 AUTHORIZATION AND ISSUANCE OF ORIGINAL WARRANTS.

               3.1 AUTHORIZATION BEFORE CLOSING. On or prior to the Closing, the
Company will authorize the issuance of the Original Warrants to the Lenders'
designees to purchase two hundred thousand (200,000) shares of the Company's
common stock in the form attached hereto as EXHIBIT "B."

               3.2 ISSUANCE OF ORIGINAL WARRANTS. Subject to the terms and
conditions of this Warrant Agreement, in consideration of the Loan to the
Company, the Company will issue the Original Warrants to the Lenders' designees
at the Closing. The Original Warrants shall have a term of five (5) years and
shall be exercisable as provided in the Warrant attached hereto as EXHIBIT "B."

               3.3 VALUATION OF ORIGINAL WARRANTS. The Original Warrants shall
be valued on the Valuation Date to determine whether the Lenders have achieved
the Target IRR. The value of the Original Warrants shall be determined by taking
the weighted average of closing sales prices of the shares of the Company's
common stock sold on the American Stock Exchange or NASDAQ (or such other
national or regional exchange on which the Company's shares are listed for sale
and that then constitutes the principal market for the Company's stock) on each
of the immediately preceding three (3) trading days prior to the Valuation Date,
computed on a per share basis, and subtracting from such average the exercise
price of the Original Warrants and then multiplying said amount by the aggregate
number of shares represented by the Original Warrants , to arrive at the value
of the Original Warrants ("VOW"). The VOW shall be added together with all
interest payments actually received by Lenders under the Note (exclusive of
default interest and provided that all amounts due under the Note have been paid
in full), and such sum shall equal the "Total Loan Consideration." The Total
Loan Consideration shall be used to calculate Lenders' internal rate of return
on the outstanding principal balance of the Loan (as the same may change from
time to time) from the Closing Date to the Valuation Date.

               3.4 ISSUANCE OF ADDITIONAL WARRANTS. If either: (i) the internal
rate of return achieved by Lenders on the Loan (calculated as provided in
Section 3.3) is less than the Target IRR, but the Company is not then in default
under the Note, or (ii) the Company defaults under the Note, which default is
not cured within the applicable cure period, then the Company shall immediately
issue the Additional Warrants to the Lenders' designees, provided however, that
(a) all of

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Lenders' designees shall execute and deliver an investor representation letter
in the form attached as EXHIBIT "C" hereto prior to the Company's issuance of
any Additional Warrants to such designee, and (b) with respect to any Lender's
designee who did not receive an Original Warrant, the Company shall have no
obligation to issue an Additional Warrant to such designee if the Company shall
determine, in good faith, that an Additional Warrant may not be issued to such
designee without registration under the Securities Act of 1933, as amended,
and/or registration or qualification under any applicable state securities laws.
If the Additional Warrants are issued pursuant to Section 3.4(i), then the
exercise price for the Additional Warrants shall be set as necessary to achieve
the Target IRR based on the value of the Company's common stock on the Valuation
Date (as determined in Section 3.3). If the Additional Warrants are issued
pursuant to Section 3.4(ii), then the exercise price shall be One Dollar and
Nineteen Cents ($1.19) per share. Notwithstanding the aforementioned, the
Company, at its option, has the right to pay to the Lenders cash in order to
achieve the Target IRR in lieu of issuing the Additional Warrants pursuant to
this Section 3.0. The Additional Warrants will have a term of one (1) year
commencing on the Valuation Date, and will be in substantially the form of the
Original Warrants, provided, however, that the Additional Warrants will be
exercisable at any time after their issuance.

               3.5 CLOSING. The Closing shall occur on the Closing Date or at
such other time and in such manner as the Parties may agree, provided that the
conditions to the Closing set forth in Section 5.0 herein have been satisfied.
At the Closing, the Company will deliver to Lenders' designees the Original
Warrants registered in the name of Lenders' designees.

        4.0 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents, warrants, and covenants to the Lenders as follows:

               4.1 ORGANIZATION AND STANDING. The Company and each of its
subsidiaries is duly organized and a validly existing corporation in good
standing under the laws of the jurisdiction in which it is organized and has all
requisite corporate power and authority for the ownership and operation of its
properties and for carrying on its business as now conducted and as now proposed
to be conducted. The Company and each of its subsidiaries is duly licensed or
qualified and in good standing as a foreign corporation authorized to do
business in all jurisdictions in which the character of the property owned or
leased, or the nature of the activities conducted by it makes such license or
qualification necessary.

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               4.2 CORPORATE ACTION. The Company has all necessary corporate
power and has taken all corporate action required to enter into the MOU and the
Loan Documents, and any all such Loan Documents when executed will be valid and
enforceable obligations of the Company. Sufficient shares of authorized but
unissued common stock of the Company have been reserved by appropriate corporate
action in connection with the issuance of the Original Warrants. The issuance of
the Shares upon exercise of the Original Warrants and/or the Additional Warrants
are not subject to preemptive or other preferential rights, or similar statutory
or contractual rights, either pursuant to any agreement or instrument to which
the Company is a party or which are otherwise binding upon the Company. Upon
exercise of the Original Warrants and/or the Additional Warrants, the Company
shall comply with all applicable regulations and requirements and take all
necessary actions so that the Shares issued upon exercise of the Warrants shall
be validly authorized and duly issued, including without limitation the listing
of such Shares with any exchanges on which the Company's shares are traded.
Lenders acknowledge that compliance with such regulations and requirements may
delay the issuance of the Shares for approximately thirty (30) days.
Notwithstanding the foregoing, except as required under the Original Warrant or
under the Additional Warrant, in no event shall the Company be required to
register the Shares under the Securities Act of 1933, as amended, or to register
or qualify the Shares under the securities laws of any state. This Warrant
Agreement, the MOU and other Loan Documents are valid and binding obligations of
the Company, enforceable in accordance with their respective terms.

               4.3 GOVERNMENTAL APPROVALS. All authorizations, consents,
approvals, licenses, exemptions from or filings, or registrations of any court
or governmental department, commission, board, agency or instrumentality,
domestic or foreign, necessary for, or in connection with, the offer, issuance,
sale, execution, or delivery by the Company or for the performance by it of its
obligations under this Warrant Agreement, the Original Warrants, or the Shares
shall have been made prior to, and shall be effective as of, the Closing.

               4.4 LITIGATION. Except as described in the Company's most recent
form 10-K, there is no litigation or governmental proceeding or investigation
pending or threatened against the Company or any of its subsidiaries or
affecting any of its properties or assets that might result, either in any case
or in the aggregate, in a material adverse change in the business, prospects,
operations, affairs, or conditions of the Company or its subsidiaries or any of
their properties

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or assets, or that might call into question of the validity of this Warrant
Agreement, the Loan or any of the Loan Documents.

               4.5 TAXES. The Company has accurately prepared and timely filed
all federal, state and other tax returns required by law to be filed by it, has
paid or made provisions for the payment of all taxes shown to be due and all
additional assessments received by it, and adequate provisions have been made
and are reflected in the Company's financial statements for all current taxes
and other charges to which the Company is subject and which are not currently
due and payable.

               4.6 SECURITIES ACT OF 1933. The Company has complied and will
comply with all applicable federal and state securities laws in connection with
the issuance and sale of the Original Warrants, provided that the investor
representation letters delivered to the Company by the Lenders and the Lenders'
designee are accurate in all material respects. Neither the Company nor anyone
acting on its behalf will offer to sell the Shares or similar securities to, or
solicit offers with respect thereto, from, or enter into any preliminary
conversations or negotiations relating thereto, with any Person so as to bring
the issuance and sale of the Original Warrants under the registration provisions
of the Act.

        5.0 CONDITIONS TO LENDERS' OBLIGATIONS TO CLOSE. Lenders' obligations to
close and fund the Loan are subject to the issuance of the Original Warrants at
the Closing and the fulfillment, as of the Closing Date, of the following
conditions:

               5.1 REPRESENTATIONS AND WARRANTIES. The representations and
warranties made by the Company in Section 4.0 hereof shall be true and correct
when made and as of the Closing Date.

               5.2 COVENANTS. All covenants and agreements and conditions
contained in this Warrant Agreement or in any of the Loan Documents to be
performed by the Company on or prior to the Closing Date shall have been
performed or complied with.

               5.3 PERMITS. The Company shall have obtained all consents,
permits and waivers necessary and appropriate for the consummation of the
transactions contemplated by this Warrant Agreement and the Loan Documents,
which need to be obtained prior to the Closing.

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        6.0 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. Each and every
representation, warranty and covenant set forth herein is true as of the date of
execution hereof, shall be true as of the Closing Date of the subject
transaction, and shall survive the Closing.

        7.0 NO MODIFICATIONS OR WAIVERS.

               7.1 MUST BE WRITTEN. Waivers or modifications of this Warrant
Agreement, or any covenant, condition, or limitation contained herein, are valid
only if in writing that is separately signed or initialed by the Parties,
provided however, that any written waiver or modification of this Warrant
Agreement that is signed by Lenawee and Dito Caree on behalf of the Lenders
shall be binding on all of the Lenders.

               7.2 NO USE AS EVIDENCE. One or more waivers or modifications of
any covenant, term or condition in this Warrant Agreement by any Party shall not
be construed by any other Party as a waiver or modification applicable to any
subsequent breach of the same covenant, term or condition. Evidence of any such
waiver or modification may not be offered or received in evidence in any
proceeding, arbitration, or litigation between the parties arising out of or
affecting this Warrant Agreement, or a Party's rights or obligations under it.
This limitation does not apply if the waiver or modification is in writing and
duly executed as provided above.

               7.3 ENTIRE AGREEMENT. This Warrant Agreement (including any
attachments and exhibits hereto), together with the Loan Documents and the MOU,
contains the Parties' sole and entire agreement regarding the subject matter
hereof, and supersedes any and all other agreements between them. In the event
of any inconsistency or conflict between the MOU and the Loan Documents, the
terms and conditions of the Loan Documents shall prevail.

        8.0 JOINT PREPARATION. The Parties to this Warrant Agreement have been
represented by competent counsel. This Warrant Agreement is therefore deemed to
have been jointly prepared by the Parties, and any uncertainty or ambiguity
existing in it shall not be interpreted against any Party under the presumptions
of California Civil Code Section 1654, but rather shall be interpreted according
to the rules generally governing the interpretation of contracts.

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        9.0 COOPERATION AND FURTHER ACTIONS. The Parties agree to perform any
and all acts and to execute and deliver any and all documents necessary to carry
out the terms of this Warrant Agreement.

        10.0 PROFESSIONAL FEES. If a lawsuit, arbitration, or other proceedings
are instituted by any Party to enforce any of the terms or conditions of this
Warrant Agreement against any other Party hereto, the prevailing Party in such
litigation, arbitration, or proceedings shall be entitled, as an additional item
of damages, to such reasonable attorneys' and other professional fees (including
but not limited to expert witness fees), court costs, arbitrators' fees,
arbitration administrative fees, travel expenses, and other out-of-pocket
expenses or costs of such other proceedings as may be fixed by any court of
competent jurisdiction, arbitrator, or other judicial or quasi-judicial body
having jurisdiction thereof, whether or not such litigation or proceedings
proceed to a final judgment or award. For the purposes of this Section 10.0, any
Party receiving an arbitration award or a judgment for damages or other amounts
shall be deemed to be the prevailing Party, regardless of amount of the damage
awarded or whether the award or judgment was based upon all or some of such
Party's claims or causes of action.

        11.0 COUNTERPARTS. This Warrant Agreement may be executed in several
counterparts, each of which so executed shall be deemed to be an original, but
such counterparts shall together constitute and be one in the same instrument.

        12.0 SEVERABILITY. If any part, clause, or condition of this Warrant
Agreement is held to be partially or wholly invalid, unenforceable, or
inoperative for any reason whatsoever, such shall not affect any other provision
or portion hereof, which shall continue to be effective as though such invalid,
inoperative, or unenforceable part, clause or condition had not been made

        13.0 BINDING UPON SUCCESSORS. This Warrant Agreement shall be binding
upon and inure to the benefit of the Parties hereto and their respective heirs,
legal representatives, successors and assigns. Any transfer of the Original
Warrants or the Additional Warrants or any of the Shares received upon exercise
of the Warrants shall only be transferred in compliance with the provisions of
such Warrant and applicable law.

        14.0 GOVERNING LAW AND VENUE. All questions concerning this Warrant
Agreement, its construction, and the rights and liabilities of the Parties
hereto shall be interpreted and enforced in accordance with the laws of the
State of California as applied to contracts which are executed and performed
entirely within

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the state. For purposes of this Agreement, sole and proper venue shall be Orange
County, California.

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        15.0   INTERPRETATION.

               15.1 SECTION HEADINGS. The section headings of this Warrant
Agreement are included for purposes of convenience only, and shall not affect
the construction or interpretation of any of its provisions.

               15.2 CAPITALIZED TERMS. Except as otherwise expressly provided
herein, all capitalized terms defined in this Warrant Agreement shall have the
meaning ascribed to them herein.

               15.3 GENDER AND NUMBER. Whenever required by the context, the
singular shall include the plural, the plural shall include the singular, and
the masculine gender shall include the neuter and feminine genders and vice
versa.

        16.0 NOTICES. For purposes hereof, delivery of written notice shall be
complete upon receipt of electronic facsimile, provided that any facsimile
notice shall only be deemed received if (a) the transmission thereof is
confirmed, and (b) facsimile notice is followed by written notice, made either
by (i) personal delivery thereof, or (ii) via deposit in certified mail return
receipt requested, postage prepaid, within three (3) business days following the
facsimile notice. Notices shall be addressed to the parties as follows:

               Company:                     General Automation,
                                            a Delaware corporation
                                            Attn:  Richard Nance
                                            17731 Mitchell North
                                            Irvine, California 92614
                                            Telephone:  (949) 250-4800
                                            Facsimile:  (949) 752-6772

               With required copy to
               Company's Attorney:          Scott McConnell, Esq.
                                            Higham, McConnell & Dunning LLP
                                            28202 Cabot Road, Suite 450
                                            Laguna Niguel, California 92677
                                            Telephone:  (949) 365-5517
                                            Facsimile:  (949) 365-5522

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               Lenders:                     Dito Caree Limited Partnership
                                            Attn:  David B. Hehn
                                            3753 Howard Hughes Parkway, #200
                                            Las Vegas, Nevada 89109
                                            Telephone:  (702) 892-3789
                                            Facsimile:  (702) 892-3992

                                            Four JM, LLC
                                            Attn:  Joseph W. Moody
                                            2532 Dupont Drive
                                            Irvine, California 92612
                                            Telephone:  (949) 474-7368
                                            Facsimile:  (949) 474-7732

                                            David A. Keligian and
                                            Gregory A. Busch, Trustees of the
                                            Lenawee Trust u/t/d 12/30/92
                                            2532 Dupont Drive
                                            Irvine, California 92612
                                            Telephone:  (949) 474-7368
                                            Facsimile:  (949) 474-7732

               With a required copy to
               Attorney for Lenders:        The Busch Firm
                                            Attn:  Rick S. Weiner, Esq.
                                            2532 Dupont Drive
                                            Irvine, California 92612
                                            Telephone:  (949) 474-7368
                                            Facsimile:  (949) 474-7732

               Notice shall be deemed given on the date it is sent via
facsimile. Any party may change the address to which to send notices by
notifying the other party of such changes in writing in accordance with this
section.

        17.0 TIME OF ESSENCE. The Parties acknowledge and agree that time is
strictly of the essence with respect to each and every term, condition,
obligation and provision hereof. Failure to timely perform any of the terms,
conditions, obligations or provisions hereof by any party shall constitute a
material breach of this Warrant Agreement by the party so failing to perform.

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<PAGE>   13

        18.0 RELATIONSHIP CREATED. Nothing contained herein or in any schedule,
attachment, or exhibit hereto shall create any partnership, joint venture or
other agreement between the Parties hereto.

        19.0 THIRD PARTY BENEFICIARIES. No term or provision of this Warrant
Agreement is intended to be, or shall be, for the benefit of any person, firm,
organization or corporation not a party hereto, and no such other person, firm,
organization or corporation shall have any right or cause of action hereunder.

        IN WITNESS WHEREOF, the Parties have executed this Warrant Agreement as
of the date first written above.

                                            GENERAL AUTOMATION,
                                            a Delaware corporation

                                            By:    __________________________
                                                   RICHARD NANCE
                                            Its:   Chief Executive Officer

                                            By:    __________________________

                                            Its:

                                                   "COMPANY"

                                            DITO CAREE LIMITED PARTNERSHIP,
                                            a Nevada limited partnership
                                            By:    GAMEBUSTERS, INC.,
                                                   a Nevada corporation
                                            Its:   General Partner

                                            By:    _________________________
                                                   DAVID B. HEHN
                                                   Its:   President
                       [SIGNATURES CONTINUED ON NEXT PAGE]

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                                       FOUR JM, LLC,
                                       a California limited liability company

                                       By:    ___________________________
                                              JOSEPH W. MOODY
                                       Its:   President

                                       LENAWEE TRUST,
                                       U/T/D DECEMBER 30, 1992

                                       By:    ___________________________
                                              DAVID L. KELIGIAN
                                       Its:   Trustee

                                       By:    ___________________________
                                              GREGORY A. BUSCH
                                       Its:   Trustee

                                              "LENDERS"

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<PAGE>   15

                                   EXHIBIT "A"

                                  SECURED NOTE

                              Please see attached.

<PAGE>   16

                                   EXHIBIT "B"

                                ORIGINAL WARRANT

                              Please see attached.

<PAGE>   17

                                   EXHIBIT "C"

                         INVESTOR REPRESENTATION LETTER

                              Please see attached.

<PAGE>   18

                                   EXHIBIT "D"

                               Lenders' Designees

<TABLE>
<CAPTION>
LENDER PARTY                 DESIGNEE                     NUMBER OF WARRANTS
<S>                          <C>                          <C>
Dito Caree Limited           Todd Martin Pickup                 133,334
Partnership                  and Devon Renee Pickup
                             or Successor Trustee, as
                             Trustees of the Vintage
                             Trust Dated October
                             28, 1993

Gregory A. Busch and         Gregory A. Busch as Trustee         61,111
David L. Keligian, Trustees  of the 92653 Trust Dated
of the Lenawee Trust Dated   December 29, 1995
December 30, 1992

Four JM LLC, a               Four JM LLC, a                       5,555
California limited           California limited
liability company            liability company
</TABLE><PAGE>   1
                                                                   EXHIBIT 10.15

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), NOR QUALIFIED UNDER THE SECURITIES LAWS OF
ANY STATE, AND HAVE BEEN ISSUED IN RELIANCE UPON EXEMPTIONS FROM SUCH
REGISTRATION AND QUALIFICATION FOR NONPUBLIC OFFERINGS. ACCORDINGLY, THE SALE,
TRANSFER, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF ANY SUCH SECURITIES OR
ANY INTEREST HEREIN MAY NOT BE ACCOMPLISHED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT AND QUALIFICATION UNDER APPLICABLE STATE
SECURITIES LAWS, OR PURSUANT TO AN OPINION OF COUNSEL SATISFACTORY IN FORM AND
SUBSTANCE TO THE BORROWER TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.

                                  SECURED NOTE

Date:               May ___, 1998                City of:  Irvine
Interest Rate:      12% per annum                State of:  California
Due Date:           April 30, 2000

        FOR VALUE RECEIVED, GENERAL AUTOMATION, INC., a Delaware corporation
("Borrower"), promises to pay to the order of GREGORY A. BUSCH and DAVID L.
KELIGIAN, as Trustees of THE LENAWEE TRUST U/T/D/ 12/30/92 ("Lenawee"), DITO
CAREE LIMITED PARTNERSHIP, a Nevada limited partnership ("Dito Caree"), and FOUR
J.M., LLC, a California limited liability company ("Four JM"), or its order or
designees (collectively, "Lenders"), at 2532 Dupont Drive, Irvine, California
92612, or at such other place as Lenders may designate in writing, in lawful
money of the United States of America, and in immediately available funds, the
principal sum of Nine Hundred Thousand Dollars ($900,000.00), or so much thereof
as may be advanced and be outstanding, with any accrued interest thereon on the
Due Date.

        1.0 DEFINITIONS. As used herein, the following capitalized terms shall
have the following meanings:

               1.1 "Borrower" shall mean GENERAL AUTOMATION, INC., a Delaware
corporation.

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<PAGE>   2

               1.2 "Deed of Trust" shall mean that certain Deed of Trust of even
date herewith granted by the Borrower in favor of the Lenders as security for
this Note.

               1.3 "Dito Caree" shall mean Dito Caree Limited Partnership, a
Nevada limited partnership.

               1.4 "Due Date" shall mean April 30, 2000, which is the date on
which all monetary obligations hereunder are due to Lenders.

               1.5 "Event of Default" shall mean any of those occurrences
described in Section 6.0 hereof.

               1.6 "Four J.M" shall mean Four J.M., LLC, a California limited
liability company.

               1.7 "Interest Law" shall mean any present or future law of the
State of California, the United States of America, or any other jurisdiction
that applies to this Note.

               1.8 "Lenawee" shall mean Gregory A. Busch and David L. Keligian
as Trustees of the Lenawee Trust U/T/D December 30, 1992.

               1.9 "Lender" shall mean individually, Lenawee, Dito Caree or
Four-J.M.

               1.10 "Lenders" shall mean collectively, Lenawee, Dito Caree and
Four-J.M.

               1.11 "Lenders' Agent" shall mean T.R. BUSCH REALTY CORPORATION,
II, a California corporation, d/b/a/ BUSCH FINANCIAL SERVICES or such successor
person or entity appointed by a majority in number of the Lenders in a writing
delivered to both Borrower and the other Lenders who have not executed such
notice.

               1.12 "Loan" shall mean the principal sum advanced hereunder by
the Lenders to the Borrower.

                                       2
<PAGE>   3

               1.13 "Maximum Legal Rate of Interest" shall mean the maximum rate
of interest that the Lenders may charge the Borrower, and under which the
Borrower would have no claim or defense of usury under the Interest Law.

               1.14 "National Bank Deed of Trust" shall mean that certain deed
of trust executed by Borrower as trustor in favor of National Bank of Southern
California as beneficiary, recorded on November 18, 1994 as instrument number
94-0669148 in the official records of the Orange County Recorder's office.

               1.15 "Note" shall mean this Secured Note executed by Borrower in
the original principal amount of Nine Hundred Thousand Dollars ($900,000.00).

               1.16 "Outstanding Principal Balance" shall mean the total amount
advanced hereunder by the Lenders less the amount of principal repayments made
by or for the Borrower.

               1.17 "Party(ies)" shall mean, either individually or collectively
as the context may imply, the Borrower and Lenders.

               1.18 "Person" shall mean an individual, a partnership, a
corporation, a limited liability company, a limited liability partnership, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization, or a governmental entity (or any department, agency, or political
subdivision thereof).

               1.19 "Property" shall mean the real property commonly known as
17731 Mitchell North, Irvine, California 92614, which property is more fully
described in Exhibit "A" to the Deed of Trust.

               1.20 "Warrant" shall mean three separate warrants issued to each
of the Lenders' designees in amounts designated by Lenders, representing
cumulatively the right of Lenders to acquire at least two thousand (200,000)
shares of common stock of the Borrower pursuant to the terms and conditions of
the Warrant Agreement.

               1.21 "Warrant Agreement" shall mean that certain Warrant
Agreement of even date herewith by and between the Lenders and the Borrower,
pursuant to which the Warrant will be issued to the Lenders.

                                       3
<PAGE>   4

        2.0 PAYMENTS. All payments due hereunder shall be payable to the
Lenders' Agent at such address as the Lenders' Agent may designate in writing.
All payments made by the Borrower to the Lenders' Agent under this Loan shall be
deemed paid to the Lenders for all purposes hereunder. Such payments will be
paid as follows:

               2.1 Accrual of Interest. Interest at the rate of twelve percent
(12%) per annum compounded annually shall accrue on the Outstanding Principal
Balance.

               2.2 Interest Computations. All interest computations under this
Note shall be computed on the basis of a three hundred sixty (360) day year,
actual days elapsed.

               2.3 Payment of Interest. Monthly interest only payments shall be
made on the last day of each calendar month until the Due Date commencing with
the first payment on May 31, 1998.

               2.4 Balloon Payment. The balance of principal and any accrued and
unpaid interest shall be paid as a balloon payment on the Due Date.

               2.5 Default Interest. From and after the occurrence of an Event
of Default which is not cured within the applicable cure period, all outstanding
amounts under this Note shall, until paid in full, bear interest at an increased
rate of interest equal to the lesser of: (i) sixteen percent (16%) per annum, or
(ii) the Maximum Legal Rate of Interest.

               2.6 Application of Payments. Each payment made on this Note shall
first (1st) be applied to costs, late charges and such other fees owing
hereunder, second (2nd) to the payment of any accrued interest, and third (3rd)
to the payment of principal.

               2.7 Failure to Perform. Upon the occurrence of an Event of
Default which is not cured within the applicable cure period, the entire
Outstanding Principal Balance and all accrued and unpaid interest t will at once
become due and payable, without notice, at the Lender's sole option. Failure to
exercise such option will not constitute a waiver of the Lenders' right to
exercise it for any subsequent default.

                                       4
<PAGE>   5

        3.0 PREPAYMENT. The Borrower shall have the right at any time to prepay
the entire indebtedness evidenced hereby and shall have the further right to
make partial prepayments hereunder at any time, in the Borrower's sole
discretion.

        4.0 USURY. It is the intention of the Borrower and Lenders to conform
strictly to the Interest Law applicable to this loan transaction. Accordingly,
it is agreed that notwithstanding any provision to the contrary in this Note, or
in any of the documents securing payment hereof, any charges or consideration
constituting interest under the Interest Law that is taken, reserved, contracted
for, charged, or received by the Lenders shall not exceed the Maximum Legal Rate
of Interest applicable to this Note. If any excess interest in such respect is
provided for in this Note, or in any of the documents securing payment hereof or
otherwise relating hereto, the provisions of this paragraph shall govern and
control.

               4.1 Heirs and Assigns. Neither the Borrower nor the Borrower's
heirs, legal representatives, successors, or assigns shall be obligated to pay
interest in excess of the Maximum Legal Rate of Interest applicable to this loan
transaction.

               4.2 Excess Interest. Any excess interest shall be deemed
cancelled automatically and if theretofore already paid, shall be credited on
this Note by the Lenders. If this Note has been paid in full, any excess
interest theretofore already paid shall be refunded to the Borrower.

               4.3 Maximum Interest. The effective rate of interest shall be
automatically subject to reduction to the Maximum Legal Rate of Interest allowed
under the Interest Law, as now or hereafter construed by courts of appropriate
jurisdiction. To the extent permitted by the Interest Law, all sums paid or
agreed to be paid to the Lenders for the use, forbearance or detention of the
indebtedness evidenced hereby shall be amortized, prorated, allocated, and
spread throughout the full term of this Note.

        5.0 SECURITY.

               5.1 Property/Grant of Security Interest. This Note is secured by
the Deed of Trust in favor of Lenders encumbering the Property.

               5.2 Due on Sale Clause. The Deed of Trust contains a due on sale
clause that provides if the Property, or any part or interest is sold, conveyed,
assigned, or transferred, or if the Borrower agrees to sell, convey, assign, or

                                       5
<PAGE>   6

transfer the Property by operation of law or otherwise, all obligations secured
by this instrument, regardless of the maturity dates, at the Lenders' option and
without demand or notice, will immediately become due and payable. The Lenders'
failure to exercise such option will not constitute waiver of the Lenders' right
to exercise it in the event of a subsequent sale, conveyance, assignment, or
transfer.

        6.0 EVENTS OF DEFAULT AND REMEDIES.

               6.1 The occurrence of any of the following shall constitute an
"Event of Default" under this Note:

                         (a) Failure to Pay. The failure to pay any principal,
interest, fees, or other charges due under this Note or any of the Loan
Documents within ten (10) days of when due.

                         (b) Bankruptcy. The filing of a petition by or against
the Borrower, under any provisions of the Bankruptcy Code, Title 11 of the
United States Code, as amended or recodified from time to time, or under any
similar or other law relating to bankruptcy, insolvency, reorganization, or
other relief for debtors; the appointment of a receiver, trustee, custodian, or
liquidator of or for any part of the assets or property of Borrower that are
material to the operations of Borrower; or Borrower becoming insolvent, making a
general assignment for the benefit of creditors or generally not paying its
debts as they become due; provided, however, that with respect to any such
action which is taken by any Person other than the Company without the
cooperation or acquiescence of the Company, the same shall not be deemed to be
an Event of Default unless such action shall have remained uncured for a period
of at least forty-five (45) days.

                         (c) Dissolution. The dissolution or liquidation of the
Borrower.

                         (d) Financial Information. Any financial statement or
tax return provided by the Borrower to Lenders proves false.

                         (e) Sale or Transfer of Assets. Any sale or transfer of
all or a substantial or material part of the assets of the Borrower other than
in the ordinary course of business.

                                       6
<PAGE>   7

                         (f) Breach. Borrower shall have failed to perform any
term, covenant, condition or obligation under this Note, the Deed of Trust or
any of the other Loan Documents, except those requiring the payment of money,
and Borrower shall have failed to cure such breach within thirty (30) days after
written notice from Lender specifying the nature of such breach, provided that
where such failure or breach reasonably could not be cured within said thirty
(30) day period, Borrower shall not be in default if Borrower commences to cure
the default or breach within the thirty (30) day period and thereafter continues
to make diligent and reasonable efforts to cure such breach and complete such
cures as soon as practicable.

                         (g) Breach of National Bank Deed of Trust. Any
violation or breach of any provision of the National Bank Deed of Trust that
leads to acceleration of the indebtedness secured thereby.

               6.2 Remedies. Upon the occurrence of any Event of Default,
Lenders, at Lenders' option, may declare all sums of principal and interest
outstanding hereunder to be immediately due and payable without presentment,
demand, protest or notice of dishonor, all of which are hereby expressly waived
by the Borrower, and the obligation, if any, of the Lenders to extend any
further credit hereunder shall immediately cease and terminate.

               6.3 Costs. The Borrower shall pay to Lenders immediately upon
demand the full amount of all payments, advances, charges, costs, and expenses,
including reasonable professionals' fees (to include outside counsel fees and
all allocated costs of the Lenders' in-house counsel), incurred by the Lenders
in connection with the enforcement of the Lenders' rights and/or the collection
of any amounts that become due to the Lenders under this Note, and the
prosecution or defense of any action in any way related to this Note, including
without limitation, any action for declaratory relief, and including any of the
foregoing incurred in connection with any bankruptcy proceeding relating to the
Borrower.

        7.0 MISCELLANEOUS.

               7.1 Notices. Any notice, request, demand, consent, approval, or
other communication required or permitted hereunder or by law shall be validly
given or made only if in writing and delivered in person or by independent
courier service to the other Party at the address(es) below, or deposited in the
United States mail, duly certified or registered (return receipt requested),
postage prepaid, and addressed to the Party for whom intended, as follows:

                                       7
<PAGE>   8

               Borrower:         General Automation, Inc.
                                 a Delaware corporation
                                 Attn:  Richard Nance
                                 17731 Mitchell North
                                 Irvine, California 92614
                                 Telephone: (949) 250-4800
                                 Facsimile:  (949) 752-6772

               Lenders:          T. R. Busch Realty Corporation II d/b/a
                                 Busch Financial Services
                                 Attn:  Timothy R. Busch
                                 2532 Dupont Drive
                                 Irvine, California 92612
                                 Telephone:  (949) 474-7368
                                 Facsimile:  (949) 474-7732

               Notice may also be given by facsimile transmission to any Party
at the respective fax number given above, marked "RUSH - PLEASE DELIVER
IMMEDIATELY", provided receipt of such transmission shall be confirmed
telephonically. Any party may from time to time, by written notice to the other
as provided above, designate a different address that shall be substituted for
that specified above. If any notice or other document is sent by mail as
aforesaid, the same shall be deemed served or delivered forty-eight (48) hours
after mailing thereof as above specified. Notice by any other method shall be
deemed served or delivered upon actual receipt at the address or fax number
listed above.

               7.2 No Waiver. No delay, failure, or discontinuance of Lenders in
exercising any right, power, or remedy under this Note or the Deed of Trust
shall affect or operate as a waiver of such right, power, or remedy; nor shall
any single or partial exercise of any such right, power, or remedy preclude,
waive, or otherwise affect any other or further exercise thereof or the exercise
of any other right, power, or remedy. Any waiver, permit, consent, or approval
of any kind by the Lenders of any breach or default must be in writing and shall
be effective only to the extent set forth in such writing.

               7.3 No Demand Required. Borrower hereby (other than as expressly
provided in this Note) waives presentment for payment, demand, protest, notice
of non-payment or dishonor, and of protest, and any and all other

                                       8
<PAGE>   9

notices and demands whatsoever, and agrees to remain bound until the principal
and interest due hereunder are paid in full.

               7.4 Cumulative Remedies. No right, power, or remedy given Lenders
by the terms of this Note, or by any other instrument now or hereafter securing
this Note, is intended to be exclusive of any other right, power, or remedy.
Each and every right, power, or remedy shall be cumulative in addition to every
other right, power, or remedy given Lenders against Borrower by the terms of any
instrument, any statute, or otherwise.

               7.5 Severability. If any part, clause, or condition of this Note
is held to be partially or wholly invalid, unenforceable, or inoperative for any
reason whatsoever, such shall not affect any other provision or portion hereof,
which shall continue to be effective as though such invalid, inoperative, or
unenforceable part, clause, or condition had not been made.

               7.6 Transferability. The transfer of this Note or any interest
therein by any Lender is subject to the restrictions contained in the legend
which is set forth on the first page of this Note.

               7.7 Governing Law. This Note is made and delivered in the City of
Irvine, County of Orange, State of California, and shall be construed in
accordance with and governed by the laws of the State of California.

               7.8 Facsimile Signatures. For purposes hereof, delivery of
written evidence of execution by electronic facsimile shall be deemed to be an
original signature for all purposes and evidence of execution by the Party who
has transmitted such signature via facsimile.

               7.9 Waiver of Jury. Borrower hereby waives the right to a trial
by jury in any action or proceeding based upon or related to, the subject matter
of this Note. This waiver is knowingly, intentionally and voluntarily made by
Borrower and Borrower acknowledges that Lenders have not made any
representations of fact to induce this waiver of trial by jury or in any way to
modify or nullify its effect. Borrower further acknowledges that Borrower has
been represented (or has had the opportunity to be represented) in the signing
of this Note and in the making of this waiver by its legal counsel selected by
Borrower, and that Borrower has had the opportunity to discuss this waiver with
counsel.

                                       9
<PAGE>   10

               7.10 Waivers, Amendments and Consents. Any consent, approval or
waiver of the Lenders pertaining to this Note shall be binding on all of the
Lenders if such consent, approval or waiver is given in writing by a majority in
number of the Lenders. Similarly, the obligations of the Borrower and the rights
of the Lenders under this Note may be amended, if such amendment is set forth in
writing and is signed by a majority in number of the Lenders, and such amendment
shall be binding on all of the Lenders. A copy of any consent, approval, waiver
or amendment executed pursuant to this Section by less than all of the Lenders
shall be promptly sent to each Lender who has not signed the same.

        IN WITNESS WHEREOF, the Borrower has executed this Note as of the date
and year first above written.

                                    GENERAL AUTOMATION, INC.,
                                    A Delaware corporation

                                    By:     _________________________
                                            RICHARD NANCE
                                    Its:    Chief Financial Officer

                                                   "BORROWER"

                                       10

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