The simplest solution would be to change the for loop to a while loop. Just calculate c at each iteration, and once c==10, the loop will stop.
function [iseed, time] = problem4 (iseed, lambda, nreps, seed)
time = 0;
c=0;
i=1;
while c<10
[iseed, u] =u16807d(iseed);
time= time-(log(1-u)/lambda);
[seed, x] = mrg32k3a(seed);
if x <= (3+(4/(time+1)))/lambda
A(i) = time;
end
c = sum(A~=0, 2);
i = i+1;
end
B = nonzeros (A);
disp (A)
end
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