<PAGE>

                                                                    Exhibit 10.8
                                                                    ------------

  Paradigm Genetics, Inc. has omitted from this Exhibit 10.8 portions of the
Agreement for which Paradigm Genetics, Inc. has requested confidential treatment
from the Securities and Exchange Commission. The portions of the Agreement for
which confidential treatment has been requested have been filed separately with
the Securities and Exchange Commission. Such omitted portions have been marked
with an asterisk.



              Monsanto/Paradigm Genetics Collaboration Agreement


                               November 17, 1999
<PAGE>

<TABLE>
<CAPTION>
                                                                          Page
                                                                          ----
<S>                                                                       <C>
1.  DEFINITIONS...........................................................   1

      1.1  Affiliate......................................................   1
      1.2  Agreement......................................................   1
      1.3  Average Net Benchmark Product Price............................   2
      1.4  Average Net Product Price......................................   2
      1.5  Benchmark Product..............................................   3
      1.6  DNA............................................................   3
      1.7  Effective Date of this Agreement...............................   3
      1.8  Grace Periods..................................................   3
      1.9  Gene Patent Rights.............................................   3
     1.10  Paradigm Gene Patent Rights....................................   4
     1.11  Improvements...................................................   4
     1.12  Know How.......................................................   4
     1.13  Licensed Products..............................................   4
     1.14  Licensed Patent Rights.........................................   4
     1.15  Monsanto Enabling Technology...................................   4
     1.16  Monsanto Licensed Products.....................................   4
     1.17  Monsanto DNA Information.......................................   5
     1.18  Net Product Revenues...........................................   5
     1.19  Paradigm Licensed Products.....................................   5
     1.20  Permitted Data.................................................   5
     1.21  Project Commencement Date......................................   5
     1.22  Project Committee..............................................   5
     1.23  Production Target Level........................................   5
     1.24  Project Plan...................................................   6
     1.25  Project Quarter................................................   6
     1.26  Project Technology.............................................   6
     1.27  Product Sublicense Payments....................................   6
     1.28  Subsidiary.....................................................   6
     1.29  Term of this Agreement.........................................   6
     1.30  Value Added....................................................   6
     1.31  Monsanto Patents...............................................   7
     1.32  Paradigm Patents...............................................   7
     1.33  Joint Patents..................................................   7
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                           <C>
2.  CONVEYANCE OF RIGHTS:....................................................................................   7

     2.1  Assignment to Monsanto:............................................................................   7
     2.2  License to Monsanto: Licensed Patent Rights........................................................   7
     2.3  License to Monsanto: Paradigm Gene Patent Rights...................................................   7
     2.4  License to Monsanto: Paradigm Gene Patent Rights - restriction on license..........................   7
     2.5  License to Monsanto: restriction on license........................................................   8
     2.6  License to Paradigm: Licensed Patent Rights........................................................   8
     2.7  License to Monsanto: research license - [________________]*........................................   8
     2.8  License to Paradigm: research license - [________________]*........................................   8
     2.9  License to Paradigm: research license - Monsanto Enabling Technology in research crops.............   9
     2.10 to Paradigm: research license - Monsanto Enabling Technology - restriction on license..............   9
     2.11 License to Paradigm: restriction on license........................................................   9

3.  FUNDED PROJECT...........................................................................................   9

     3.1  Funded Project.....................................................................................   9

     3.2  Contribution of Monsanto...........................................................................   9
       3.2.1  Monsanto DNA supplied..........................................................................  10
       3.2.2  Counting Monsanto DNA..........................................................................  10
       3.2.3  Counting for failed experiments................................................................  10

     3.3  Contribution of Paradigm...........................................................................  11
       3.3.1  Conducting Project Plan........................................................................  11
       3.3.2  Database Compatibility.........................................................................  11
       3.3.3  Biological Materials...........................................................................  11
       3.3.4  Contribution of Third Party Information........................................................  11
          3.3.4.1  Right to Summary Information.............................................................   11
          3.3.4.2  Consequence of Using Permitted Data......................................................   11
          3.3.4.3  Consequence of Expansion.................................................................   12

     3.4  Project Committee..................................................................................  12
       3.4.1  Committee Duties...............................................................................  12
       3.4.2  Committee Structure............................................................................  12
       3.4.3  Meetings.......................................................................................  12
       3.4.4  Decision Making................................................................................  12

3.5  Term and Termination of Funded Project..................................................................  13
       3.5.1  Early Termination - Production Target Levels Achieved..........................................  13
       3.5.2  Early Termination - Production Target Levels Not Achieved......................................  13
       3.5.3  Early Termination - Other Reasons..............................................................  14
       3.5.4  Extension......................................................................................  14
       3.5.5  Surviving Paragraphs...........................................................................  14

4.   PAYMENTS................................................................................................  14

     4.1  Project Funding....................................................................................  14
       4.1.1  Inducement Fee.................................................................................  14
          4.1.1.1  Termination Refund........................................................................  15
       4.1.2  Annual Technology Enhancement Fee..............................................................  15
       4.1.3  Quarterly Payment..............................................................................  15
</TABLE>

                                       ii

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

<TABLE>
<S>                                                                                                            <C>
       4.1.4  Production Target Level Payments................................................................ 15
       4.1.5  Additional Optional Projects.................................................................... 16
          4.1.5.1. Rice Option................................................................................ 16
          4.1.5.2  Increase in Arabidopsis.................................................................... 16
          4.1.5.3  Increase in Arabidopsis.................................................................... 16
          4.1.5.4  Impact of Expansion - Production Target Level Measurement.................................. 17
          4.1.5.5  Impact of Expansion - right to terminate................................................... 17

     4.2  Royalties - Monsanto Licensed Products.............................................................. 17
       4.2.1  Minimum Royalty................................................................................. 17
       4.2.2  One Royalty..................................................................................... 18
       4.2.3  Third Party Royalty Offset...................................................................... 18
       4.2.4  Monsanto Royalty Buy-Out........................................................................ 18

     4.3  License or sublicense of Licensed Patent Rights by Monsanto......................................... 18

     4.4  Royalties - Paradigm Licensed Products.............................................................. 19

     4.5  Valuation of Non-Monetary Consideration for Product Sublicense Payments:............................ 19

5.   RECORDS.................................................................................................. 19

     5.1  Payments of Royalties............................................................................... 19

     5.2  Books and Records for Royalty Payments.............................................................. 19

     5.3  Late Payment of Royalties........................................................................... 20

6.   INTELLECTUAL PROPERTY.................................................................................... 20

     6.1  Ownership of Project Technology Other Than Gene Patent Rights....................................... 20

     6.2  Disclosure of Patentable Inventions................................................................. 20

     6.3  Access to Gene Patent Rights........................................................................ 21

     6.4  Patent Prosecution and Maintenance; Paradigm Patents................................................ 21

     6.5  Patent Prosecution and Maintenance; Monsanto Patents................................................ 21

     6.6  Patent Prosecution and Maintenance; Joint Patents................................................... 21

     6.7  Gene Patent Rights.................................................................................. 22
       6.7.1  Disclosure...................................................................................... 22
       6.7.2  Prosecution of applications..................................................................... 22

     6.8  Cooperation......................................................................................... 22

     6.9  Costs............................................................................................... 22

     6.10 Patent Litigation: Right to Bring Suit.............................................................. 23

     6.11  Confidential Treatment............................................................................. 23

7.   CONFIDENTIALITY.......................................................................................... 23

     7.1  Confidential Information:........................................................................... 23

     7.2  Confidentiality and Limited Use:.................................................................... 23

       7.2.1  Limited Use:.................................................................................... 23
       7.2.2  Exceptions to Disclosure of Confidential Information:........................................... 24

     7.3  Exceptions to Classification as Confidential:....................................................... 24

       7.3.1  Publicly Available:............................................................................. 24
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                        <C>
       7.3.2  Already Known:.............................................  24
       7.3.3  Third Party Disclosure:....................................  24

   7.4  Specific Information:............................................  24

   7.5  Disclosures to Personnel:........................................  25

   7.6  Return of Confidential Information:..............................  25

   7.7  Confidential Status of Agreement:................................  25

   7.8  Disclosure to Third Parties......................................  25
       7.8.1  Consultants................................................  25
       7.8.2  Investors..................................................  26

   7.9  Publications.....................................................  26

8.  REPRESENTATION AND WARRANTIES........................................  26

   8.1  Monsanto.........................................................  26

   8.2  Paradigm.........................................................  27

   8.3  Third Party Obligation...........................................  27

9.  INDEMNIFICATION......................................................  28

   9.1  General -Paradigm................................................  28

   9.2  General -Monsanto................................................  28

   9.3  Other Loss.......................................................  28

10.  APPLICABLE LAW......................................................  29

   10.1  Governing Law; Jurisdiction.....................................  29

11.  MISCELLANEOUS PROVISIONS............................................  29

   11.1  Notices:........................................................  29

   11.2  Assignability:..................................................  30

   11.3  Dispute Resolution..............................................  30
       11.3.1  General...................................................  30
       11.3.2  Parties Shall Meet........................................  30
       11.3.3  CEOs Shall Meet...........................................  30
       11.3.4  Arbitration Trigger.......................................  30
       11.3.5  Arbitration Rules.........................................  31
       11.3.6  Agreements to Agree.......................................  31

   11.4  Tax Reporting:..................................................  31

   11.5  Severability:...................................................  32

   11.6  Counterparts:...................................................  32

   11.7  Headings:.......................................................  32

   11.8  Agreement references:...........................................  32

   11.9  Appendices:.....................................................  32

   11.10 Export Control:.................................................  32
</TABLE>

                                       iv
<PAGE>

<TABLE>
<S>                                                                        <C>
       11.11  Force Majeure:.............................................. 33

       11.12  Negation of Agency:......................................... 33

       11.13  Other Requests:............................................. 33

       11.14  Amendment and Waiver:....................................... 34
</TABLE>

                                       v
<PAGE>

     THIS IS AN AGREEMENT effective November 17, 1999, ("Effective Date of this
Agreement") by and between Paradigm Genetics Inc. a corporation organized under
the laws of North Carolina having its principal place of business at 104
Alexander Drive, Building 2, P.O. Box 14528, Research Triangle Park, North
Carolina 27009 ("Paradigm") and Monsanto Company ("Monsanto"), a Delaware
corporation, having a principal place of business at 800 North Lindbergh
Boulevard, St. Louis, Missouri 63167.

     WHEREAS, Monsanto has certain rights relating to genes which impart traits
in plants and plants containing such genes, such rights including possession of
technical information and know-how relating to such plants and their use, and
ownership of U.S. and foreign patent applications covering the plants, seeds,
genes and their use;

     WHEREAS, Paradigm has expertise in transforming Arabidopsis plants with DNA
and analyzing the resultant plants for functional changes, including possession
of technical information and know how relating to such plants and their analysis
and use, and ownership of U.S. and foreign patent applications covering the
plants, genes and their use.

     WHEREAS, Monsanto and Paradigm are contemplating establishing a strategic
functional genomics research alliance to create proprietary intellectual
property and products for both parties relating to gene sequences provided by
Monsanto to Paradigm;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, the parties agree as follows:

                                1.  DEFINITIONS
                                    -----------

     Terms in this Agreement defined in the singular have the same meanings when
used in the plural and vice versa. For purposes of this Agreement, the following
words and phrases shall have the following meanings:

     1.1  Affiliate

     "Affiliate" shall mean with respect to any person or entity, any other
person or entity which directly or indirectly controls, is controlled by or is
under common control with such person or entity. A person or entity shall be
deemed to be "controlled" by any other person or entity if such other person or
entity (i) possesses, directly or indirectly, power to direct or cause the
direction of the management and policies of such person or entity whether by
contract or otherwise, (ii) has direct or indirect ownership of more than 50%
(in the aggregate) of the voting power of all outstanding shares entitled to
vote at a general election of directors of the person or entity or (iii) has
direct or indirect ownership of more than 50% of the equity interests in a
partnership or a limited liability company.

     1.2  Agreement

     "Agreement" shall mean this collaboration agreement.
<PAGE>

     1.3  Average Net Benchmark Product Price

     "Average Net Benchmark Product Price" shall mean the average gross invoiced
     sales price received by Monsanto and its Affiliates for the sale of a unit
     of Benchmark Product, or if no Benchmark Product is sold by Monsanto or its
     Affiliates, all consideration received by a third party for the Benchmark
     Product, in each case, in arm's length sales to an independent third party,
     in a particular country for the applicable period, after deduction of the
     following items, provided and to the extent such items are actually
     incurred and documented and do not exceed reasonable and customary amounts
     in the market in which such sale occurred: (i) trade discounts actually
     allowed; (ii) credits, rebates and returns; (iii) freight and duties paid
     for and separately identified on the invoice or other documentation
     maintained in the ordinary course of business, (iv) taxes, duties and other
     compulsory payments to governmental authorities actually paid and
     separately identified on the invoice or other documentation maintained in
     the ordinary course of business, and (v) dealer/distributor and seed
     service fees paid by Monsanto and its Affiliates. All sales of Benchmark
     Products between Monsanto and any of its Affiliates and sublicensees shall
     be disregarded for purposes of computing Average Net Benchmark Product
     Price. A "sale" shall include any transfer or other disposition for
     consideration, and Average Net Benchmark Product Price shall include all
     consideration received by Monsanto or its Affiliates in respect of any sale
     of Benchmark Products, whether such consideration is in cash, payment in
     kind, exchange or another form.

     1.4  Average Net Product Price

     "Average Net Product Price" shall mean the average gross invoiced sales
     price received by Monsanto and its Affiliates for the sale of a unit of
     Licensed Product in arm's length sales to an independent third party, in a
     particular country for the applicable period, after deduction of the
     following items, provided and to the extent such items are actually
     incurred and documented and do not exceed reasonable and customary amounts
     in the market in which such sale occurred: (i) trade discounts actually
     allowed; (ii) credits, rebates and returns; (iii) freight and duties paid
     for and separately identified on the invoice or other documentation
     maintained in the ordinary course of business, (iv) taxes, duties and other
     compulsory payments to governmental authorities actually paid and
     separately identified on the invoice or other documentation maintained in
     the ordinary course of business, and (v) dealer/distributor and seed
     service fees paid by Monsanto and its Affiliates. All sales of Licensed
     Products between Monsanto and any of its Affiliates and sublicensees shall
     be disregarded for purposes of computing Average Net Product Price. A
     "sale" shall include any transfer or other disposition for consideration,
     and Average Net Product Price shall include all consideration received by
     Monsanto or its Affiliates in respect of any sale of Licensed Product,
     whether such consideration is in cash, payment in kind, exchange or another
     form. Average Net Product Price shall not be discounted due to any product
     "bundling" unless Monsanto or its Affiliates does not offer the Licensed
     Product outside of a "bundle". In the case of discounts on "bundles" of
     products or services which include Licensed Products, Monsanto may with
     notice to Paradigm calculate the Average Net Product Price by discounting
     the bona fide list price

                                       2
<PAGE>

     of a Licensed Product by no more than the average percentage discount of
     all products of Monsanto and/or its Affiliates in a particular "bundle",
     calculated as follows:

     Average percentage

     discount on a    =  (1 -A/B)x 100

     particular "bundle"

     where A equals the total discounted price of a particular "bundle" of
     products, and B equals the sum of the un-discounted bona fide list prices
     of each unit of every product in such "bundle". Monsanto shall provide
     Paradigm documentation, reasonably acceptable to Paradigm, establishing
     such average discount with respect to each "bundle".

     1.5  Benchmark Product

     "Benchmark Product" shall mean a product not covered by Licensed Patent
     Rights, but otherwise identical to a Licensed Product, or if no such
     product exists, substantially similar to a Licensed Product, but not
     covered by Licensed Patent Rights, in each case, available in the same
     country and time period. A Benchmark Product must be a commercial product
     sold by Monsanto or its Affiliates or a third party. If Monsanto or its
     Affiliates do not sell such a Benchmark Product, then the most suitable
     product that meets the above definition sold by a third party in the
     applicable country during the applicable time period shall be used as the
     Benchmark Product.

     1.6  DNA

     "DNA" shall mean deoxyribonucleic acid or other similar material.

     1.7  Effective Date of this Agreement
     "Effective Date of this Agreement" shall mean the date first written above.

     1.8  Grace Periods

     "Grace Period" shall mean for the Project Plan's years 1 and 2, 120 days
     beyond the Project Quarter given to achieve the Production Target Level for
     such Project Quarter and during the Project Plan's years 3 and beyond, 90
     days beyond the Project Quarter given to achieve the Production Target
     Level for such Project Quarter.

     1.9  Gene Patent Rights

     "Gene Patent Rights" shall mean Licensed Patent Rights claiming an
     invention relating to the making, composition or function of any Monsanto
     DNA Information other than patent rights claiming discoveries or inventions
     not discovered or developed in the course of carrying out the Project Plan.

                                       3
<PAGE>

     1.10  Paradigm Gene Patent Rights

     "Paradigm Gene Patent Rights" shall mean patent rights of Paradigm claiming
     discoveries or inventions related to Monsanto DNA Information not
     discovered or developed in the course of carrying out the Project Plan.

     1.11  Improvements

     "Improvements" shall mean any improvements to Monsanto Enabling Technology.
     Improvements may or may not result in patentable subject matter.

     1.12  Know How

     "Know How" shall mean information and material known to Monsanto necessary
     to use any particular Monsanto Enabling Technology, including, but not
     limited to DNA constructs, probes, and antibodies.

     1.13  Licensed Products

     "Licensed Product" shall mean a particular product or a particular species
     of animals, plants, plant or animal parts, animal progeny, seed of plants
     and products from any of the foregoing, or the process of making any of the
     above, which, in the absence of a license, would infringe at least one (1)
     claim of an unexpired U.S. or foreign patent included within Licensed
     Patent Rights.

     1.14  Licensed Patent Rights

     "Licensed Patent Rights" shall mean (i) patent rights of Monsanto or
     Paradigm claiming [_________________]*, (ii) patent rights of Monsanto
     claiming Monsanto DNA Information, and (iii) patent rights of Paradigm
     claiming Monsanto DNA Information other than patent rights claiming
     discoveries or inventions not discovered or developed in the course of
     carrying out the Project Plan.

     1.15  Monsanto Enabling Technology

     "Monsanto Enabling Technology" shall mean proprietary DNA, processes,
     techniques and Know How of Monsanto owned by Monsanto or otherwise
     licensable by Monsanto to Paradigm at the Project Commencement Date which
     assists in or improves the ability to insert or express DNA in plants,
     including without limitation, those technologies listed in Appendix K.

     1.16  Monsanto Licensed Products

     "Monsanto Licensed Products" shall mean Licensed Products, other than
     chemical herbicides, which (i) infringe a Licensed Patent for which
     Paradigm has an ownership interest or which lists a Paradigm employee as an
     inventor, or (ii) infringe a Licensed Patent, the patentability of which
     was based, in whole or in part, on [________________]* to which an employee
     of Paradigm made a material contribution.

                                       4

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.


<PAGE>

     1.17  Monsanto DNA Information

     "Monsanto DNA Information" shall mean DNA and sequence information for such
     DNA provided by Monsanto to Paradigm including, but not limited to, full
     length cDNA clones, genomic clones, PCR primers to be used to amplify the
     desired gene from a target DNA or sequence for 5' and 3' PCR primers.

     1.18  Net Product Revenues

     "Net Product Revenues" shall mean the gross invoiced sales of Licensed
     Products received by Paradigm or their respective Affiliates during the
     applicable period in arm's length transactions after deduction of the
     following items, provided and to the extent such items are actually
     incurred and do not exceed reasonable and customary amounts in each market
     in which such sales occurred: (i) trade and quantity discounts and rebates;
     (ii) credits or allowances made for rejection or return of previously sold
     Licensed Products; (iii) any tax or government charge levied on the sale,
     such as value added tax (but not including income tax); and (iv) any
     charges for freight or insurance. In the event that the Licensed Product is
     not sold or is used internally by Paradigm or an Affiliate of Paradigm, or
     is sold or otherwise transferred to a third party for a price lower than if
     it had been sold to a third party in an arm's length transaction ("fair
     market value"), then Net Products Revenues shall be the fair market value
     of the Licensed Product.

     1.19  Paradigm Licensed Products

     "Paradigm Licensed Products" shall mean chemical herbicides which (i)
     infringe a Licensed Patent for which Monsanto has an ownership interest or
     which lists a Monsanto employee as an inventor, or (ii) infringe a Licensed
     Patent the patentability of which was based, in whole or in part, on
     [________________]* to which an employee of Monsanto made a material
     contribution.

     1.20  Permitted Data

     "Permitted Data" shall have the meaning set forth in Article 3.3.4.

     1.21  Project Commencement Date

     "Project Commencement Date" shall mean February 1, 2000.

     1.22  Project Committee

     "Project Committee" shall mean the committee established in Article 3.4.

     1.23  Production Target Level

     "Production Target Level" shall mean, for each Project Quarter, the
     achievement by Paradigm of the goal set forth in bold print in Appendix C
     or in any other Appendix adopted under Article 4.1.5.

                                       5

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

     1.24  Project Plan

     "Project Plan" shall mean the plan attached as Appendix B, as amended by
     the Project Committee.

     1.25  Project Quarter

     "Project Quarter" shall mean a calendar quarter starting from the Project
     Commencement Date.

     1.26  Project Technology

     "Project Technology" shall mean any materials, know-how, information,
     discoveries or inventions that are discovered or developed in the course of
     carrying out the Project Plan.

     1.27  Product Sublicense Payments

     "Product Sublicense Payments" shall mean all consideration received by
     Monsanto and its Affiliates or Paradigm and its Affiliates from licensees
     or sublicensees of Licensed Patent Rights in respect of any grant of rights
     to make, use, sell or import Licensed Products (including, without
     limitation, royalties or other payments for the sale of Licensed Products,
     sublicense fees and Production payments) less pro rata deductions (based on
     the number of technologies licensed to the licensee or sublicensee) for:
     (i)dealer/distributor and seed service fees actually paid by Monsanto and
     its Affiliates or Paradigm and its Affiliates, and (ii) taxes, duties and
     other compulsory payments to governmental authorities actually paid and
     separately identified on the invoice or the documentation maintained in the
     ordinary course of business.

     1.28  Subsidiary

     "Subsidiary" shall mean an Affiliate controlled by a party to this
     Agreement.

     1.29  Term of this Agreement

     "Term of this Agreement" shall be 6 years from the Project Commencement
     Date unless extended or terminated as provided for in this Agreement.

     1.30  Value Added

     "Value Added" shall mean (i) the difference between the Average Net Product
     Price of a Licensed Product as compared to the Average Net Benchmark
     Product Price of the applicable Benchmark Product in the same country and
     time period, and (ii) any other identifiable value (which is not merely
     speculative) attributable to the Licensed Patent Right's contribution to
     any Licensed Product sales, including, without limitation, increased market
     share of a Licensed Product and market share maintenance of a Licensed
     Product, in each case, as compared to the applicable Benchmark Product. It
     is understood and agreed that "Value Added" shall include all incremental
     value which is identifiable (and not merely speculative) which Monsanto and
     its Affiliates receives

                                       6
<PAGE>

     from customers of Licensed Products. For Licensed Products where there is
     no Benchmark Product, the Value Added will equal the Average Net Product
     Price.

     1.31  Monsanto Patents

     "Monsanto Patents" shall have the definition provided in Article 6.1.

     1.32  Paradigm Patents

     "Paradigm Patents" shall have the definition provided in Article 6.1.

     1.33  Joint Patents

     "Joint Patents" shall have the definition provided in Article 6.1.

                           2.  CONVEYANCE OF RIGHTS:
                               --------------------

     2.1  Assignment to Monsanto:

     Subject to the terms and conditions of this Agreement and for the
     consideration as set forth in Article 4, Paradigm agrees to assign and
     hereby assigns to Monsanto Paradigm's right, title and interest to the Gene
     Patent Rights.

     2.2  License to Monsanto: Licensed Patent Rights

     Except for Gene Patent Rights assigned to Monsanto pursuant to Article 2.1,
     subject to the terms and conditions of this Agreement (including, without
     limitation, Article 2.5) and for the consideration as set forth in Article
     4, Paradigm hereby grants to Monsanto under Paradigm's interest in the
     Licensed Patent Rights and for the life of such Licensed Patent Rights a
     perpetual non-exclusive, world-wide license to make and use
     [________________]* and Monsanto DNA Information and a perpetual exclusive,
     world-wide license to develop, make, have made, import, use, sell, have
     sold, and offer to sell Monsanto Licensed Products. Paradigm further grants
     Monsanto the right to sublicense any of the above rights.

2.3  License to Monsanto: Paradigm Gene Patent Rights

     Paradigm grants to Monsanto, Subsidiaries of Monsanto and wholly-owned
     Affiliates of Monsanto under Paradigm's interest in Paradigm Gene Patent
     Rights a perpetual non-exclusive, world-wide license to use Monsanto DNA
     Information for research purposes only. Such right shall not extend to any
     other Paradigm owned or in-licensed technology.

2.4  License to Monsanto: Paradigm Gene Patent Rights - restriction on license

     No right to commercialize a plant produced under Article 2.3 is granted in
     this Agreement and Paradigm shall be under no obligation to provide such a
     license. Monsanto shall be responsible for maintaining sufficient records
     on the use of plants

                                       7

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

     which infringe Paradigm Gene Patent Rights so that such plants can be
     identified. To the extent that Monsanto or an Affiliate of Monsanto seeks
     to produce and analyze plants for a third party, Monsanto shall inform such
     third party that the rights granted Monsanto under Paradigm Gene Patent
     Rights is limited to the use of such plants solely by Monsanto and only for
     research purposes and that any license necessary to commercialize any
     plants can only be granted by Paradigm.

     2.5  License to Monsanto: restriction on license

     Nothing in this Agreement shall be construed as granting a license under
     any Paradigm patents other than Licensed Patent Rights or Paradigm Gene
     Patent Rights. No license is granted to any Licensed Product which
     infringes a Paradigm patent that is not included in Licensed Patent Rights
     or Paradigm Gene Patent Rights.

     2.6  License to Paradigm: Licensed Patent Rights

     Subject to the terms and conditions of this Agreement and for the
     performance of the Research Plan and other consideration as set forth
     herein, Monsanto hereby grants to Paradigm under the Licensed Patent Rights
     except for those patent rights directed to DNA other than Arabidopsis DNA
     and, if the Project Plan is extended under Article 4.1.5.1, except for
     those patent rights directed to DNA other than Arabidopsis and rice DNA,
     and for the life of such Licensed Patent Rights a perpetual non-exclusive
     world-wide license to make and use [________________]* and Monsanto DNA
     Information directed to Arabidopsis DNA and, if the Project Plan is
     extended under Article 4.1.5.1, rice DNA and a perpetual exclusive world-
     wide license to develop, make, have made, import, use, sell, have sold, and
     offer to sell Paradigm Licensed Products. Monsanto further grants Paradigm
     the right to sublicense the rights to develop, make, have made, import,
     use, sell, have sold, and offer to sell Paradigm Licensed Products.

     2.7  License to Monsanto: research license - [________________]*

     Paradigm grants to Monsanto, Subsidiaries of Monsanto and wholly-owned
     Affiliates of Monsanto under Paradigm's interest in Licensed Patent Rights
     and [________________]* a perpetual non-exclusive, worldwide license to use
     [________________]* for research purposes only. Such right shall not extend
     to any other Paradigm owned or in-licensed [________________]*.

     2.8  License to Paradigm: research license - [________________]*

     Monsanto grants Paradigm and those Subsidiaries of Paradigm at the
     Effective Date of this Agreement under Monsanto's interest in Licensed
     Patent Rights except for those patent rights directed to DNA other than
     Arabidopsis DNA and, if the Project Plan is extended under Article 4.1.5.1,
     except for those patent rights directed to DNA other than Arabidopsis and
     rice DNA, and [________________]* a perpetual nonexclusive, world-wide
     license to use [____________]* and Monsanto DNA Information directed to
     Arabidopsis DNA and, if the Project Plan is extended under Article 4.1.5.1,
     rice DNA for research purposes only. Such right shall not extend to any
     other Monsanto owned or in-licensed[________________]*, including Monsanto
     DNA Information that is not from

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     Arabidopsis or, if the Project Plan is extended under Article 4.1.5.1,
     rice, except as set forth in Article 2.9.

     2.9  License to Paradigm: research license - Monsanto Enabling Technology
          in research crops

     Monsanto grants Paradigm and Subsidiaries of Paradigm under Monsanto's
     interest in Monsanto Enabling Technology a perpetual, nonexclusive, U.S.
     and Europe only, license to use Monsanto Enabling Technology in
     Arabidopsis, tobacco and, if the Project Plan is extended under Article
     4.1.5.1, rice for research purposes only. Such right shall not extend to
     any other Monsanto owned or in-licensed technology, whether or not licensed
     to Paradigm herein, except and to the extent as set forth in Article 2.8.
     Notwithstanding the foregoing, such research license shall not apply to
     research in herbicide resistance in any plant species.

     2.10 License to Paradigm: research license - Monsanto Enabling Technology -
     restriction on license

     No right to commercialize a plant produced under Article 2.9 is granted in
     this Agreement and Monsanto shall be under no obligation to provide such a
     license. Paradigm agrees to keep any plant produced in the United States
     and Europe. Paradigm shall be responsible for maintaining sufficient
     records on the use of Monsanto Enabling Technology so that such plants can
     be identified. To the extent that Paradigm or an Affiliate of Paradigm
     seeks to produce and analyze plants for a third party, Paradigm shall
     inform such third party that the rights granted Paradigm under Monsanto
     Enabling Technology is limited to the use of such plants solely by Paradigm
     and only for research purposes and that any license necessary to
     commercialize any plants can only be granted by Monsanto. Paradigm agrees
     to grant and hereby grants a royalty-free, nonexclusive license to Monsanto
     to any Improvements created by Paradigm.

     2.11  License to Paradigm: restriction on license

     Nothing in this Agreement shall be construed as granting a license under
     any Monsanto patents other than Licensed Patent Rights and Monsanto
     Enabling Technology. No license is granted to any Licensed Product which
     infringes a Monsanto patent that is not included in Licensed Patent Rights
     or Monsanto Enabling Technology.

                              3.  FUNDED PROJECT
                              ------------------
     3.1  Funded Project

     Subject to the terms and conditions set forth herein, commencing on the
     Project Commencement Date, Paradigm shall conduct the project pursuant to
     the Project Plan, as described herein or as amended by the Project
     Committee. Paradigm shall be responsible for the management and
     implementation of the Project Plan.

     3.2 Contribution of Monsanto


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<PAGE>

Monsanto will supply Monsanto DNA Information to Paradigm as provided in the
Project Plan to allow Paradigm to meet the Production Target Levels as set forth
in the applicable Appendix.

     3.2.1  Monsanto DNA supplied

            In the case of Monsanto DNA Information relating to a species
            other than Arabidopsis, such Monsanto DNA Information shall be in
            the form of a
            [__________________________________________________________]*

            each such non-Arabidopsis DNA, Paradigm will provide [________
            __________________________________________________________]*.
            Monsanto agrees to provide to Paradigm [________________________
            _____________________________________________]*.  Under the
            Project Plan, Monsanto shall be limited to providing no more than
            [_________________]* non-Arabidopsis DNA of which no more than
            [_____________________]* will be from rice, no more than
            [__________________]* will be from [__________]* and no more than
            [_______________]* will be from
            [________________________________]*. These amounts will be
            proportionally expanded if Monsanto exercise the options under
            Articles 4.1.5.2 or 4.1.5.3. Monsanto will use diligent efforts
            to assure that all Monsanto DNA Information is accurate.

     3.2.2  Counting Monsanto DNA

            For purposes of calculating the achievement of Production Target
            Levels, each analysis, whether [______________]* shall be counted,
            so that an analysis of a [________________________________________
            ________________________________________________________]*. In the
            case of [__________________________________________________________
            _____________]* shall be counted as [_______________________]*. If
            the [_____________________]* does not have an [_____________________
            _______________________________________]* shall be counted as
            [___________________]*. It is additionally expected that control
            experiments will be included in the Project Plan which will not be
            counted towards the Production Target Levels.

     3.2.3  Counting for failed experiments

     In the event that Paradigm attempts diligently to insert the DNA from any
     Monsanto DNA Information into Arabidopsis as set forth in the Project Plan
     but is unable to do so, then for purposes of calculating the achievement of
     Production Target Levels, Paradigm will be deemed to have achieved
     [___________________]* of an analysis.

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3.3  Contribution of Paradigm

     3.3.1  Conducting Project Plan

     Paradigm shall use diligent efforts to conduct the Project Plan and
     meet the Production Target Levels set out in the appendices.

     3.3.2  Database Compatibility

     Paradigm agrees to make diligent efforts to report data generated from the
     Project Plan in a customized database as described in the Project Plan.
     This data base will be updated on a monthly basis.

     3.3.3  Biological Materials

     Paradigm will provide Monsanto with reasonable access to biological
     materials generated in the course of conducting the Project Plan as set
     forth in the Project Plan.

     3.3.4  Contribution of Third Party Information

     In the event that Monsanto provides Monsanto DNA Information to Paradigm
     that Paradigm has already analyzed for a third party, Paradigm agrees, to
     the extent it has the right to do so, to make available to the Project
     Committee data resulting from such analysis on the following basis:

            3.3.4.1  Right to Summary Information

            For each such analysis Paradigm will initially provide to the
            Project Committee a brief summary of the data which will consist of
            a statement as to whether the data shows a statistically significant
            deviation from data obtained from a wild type Arabidopsis plant. The
            Project Committee will then determine whether or not to receive the
            data that Paradigm has the right to deliver ("Permitted Data"). If
            the Project Committee chooses not to receive the Permitted Data and
            not to have Paradigm analyze such Monsanto DNA Information
            independently in the Project Plan, then the specific Monsanto DNA
            Information will not be counted in the throughput targets for the
            Project Plan and Monsanto can replace that Monsanto DNA Information
            with different Monsanto DNA Information to be analyzed by Paradigm,
            provided, however, that the Project Committee may only do so with
            respect to [__]* DNA sequences provided by Monsanto.

            3.3.4.2  Consequence of Using Permitted Data

            If the Project Committee decides to proceed with a full analysis, it
            will elect to receive the Permitted Data and, assuming the Permitted
            Data does not contain all the analysis provided in the Project Plan,
            have Paradigm

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            complete the analysis of the Monsanto DNA Information as provided in
            the Project Plan. If the Project Committee chooses to receive the
            Permitted Data, or if the Project Committee decides to have Paradigm
            complete the analysis of that Monsanto DNA Information in the
            Project Plan, or if the Project Committee elects to not receive the
            Permitted Data for any DNA sequences in excess of [__]*, then that
            Monsanto DNA Information will be counted in the throughput targets
            for Paradigm in the Project Plan.

            3.3.4.3  Consequence of Expansion

            In the event that the Project Plan is expanded as set forth in
            Article 4.1.5.2 or Article 4.1.5.3, there will be no limit to the
            number of times the Project Committee may elect not to receive the
            Permitted Data; provided, however, that of at any time Monsanto has
            not provided Paradigm with sufficient Monsanto DNA Information to be
            able to achieve the Production Target Levels set forth in the
            appropriate Appendix, then Monsanto DNA Information which was not
            counted in the throughput targets for the Project Plan because it
            was not elected will be counted for purposes of determining the
            Production Target Level.

3.4  Project Committee

     3.4.1  Committee Duties

            The duties of the Project Committee shall be as specified in this
            Agreement and as determined in writing by the parties, so long as
            such written determination is not inconsistent with this Agreement
            unless the parties amend the Agreement accordingly.

     3.4.2  Committee Structure

            The Project Committee shall be comprised of three Monsanto and three
            Paradigm employees designated by Monsanto and Paradigm,
            respectively. Each party is free to name and change its Project
            Committee Members without permission from the other party.

     3.4.3  Meetings

            The Project Committee shall meet quarterly at Paradigm or other
            location as agreed upon by both parties. The Project Committee will
            prepare quarterly science reports and the minutes of the meetings
            will be approved by both parties.

     3.4.4  Decision Making

            The Project Committee may modify the Project Plan based upon actual
            project results. The Project Committee will also agree upon how to

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<PAGE>

            integrate new technology into the project from Monsanto, Paradigm or
            third parties. Monsanto will be given a supermajority vote on all
            decisions that do not materially change the scope of the Project
            Plan or do not require Paradigm to incur any additional costs with
            the exception that a unanimous vote is required to change the
            provisions of the Project Plan relating to Monsanto's supply of DNA
            (Article 3.2) or Monsanto's access to biological materials (Article
            3.3.3). Other than the Project Plan, the Project Committee may not
            modify this Agreement. Any decisions related to material changes in
            the scope or the budget for the Project Plan or related to changing
            the terms of this Agreement will require mutual consent of Paradigm
            and Monsanto.

3.5  Term and Termination of Funded Project

     The Term of this Agreement will be 6 years after the Project Commencement
     Date with the possibility to extend the Agreement based upon the mutual
     agreement of both parties.

     3.5.1  Early Termination - Production Target Levels Achieved

            Monsanto will have the option to serve notice of its intention to
            terminate the Project Plan at end of any quarter from Project
            Quarter 8 to Project Quarter 12 of the Project Plan, such notice
            having the effect of terminating the Agreement eighteen (18) months
            after such written notice to Paradigm (e.g., notice given at the end
            of Project Quarter 8 terminating the Agreement at the end of Project
            Quarter 14). In the event of early termination, Production Target
            Level payments and quarterly payments remaining the same as set
            forth in Appendix C and D until such termination.

     3.5.2  Early Termination - Production Target Levels Not Achieved

            Both parties will have the option to terminate this Agreement prior
            to the expiration of the six (6) year term under the following
            conditions. Either party may terminate the Agreement with thirty
            (30) days prior written notice given within thirty (30) days after
            the relevant period set forth below as follows: (a) after the third
            Project Quarter or any subsequent Project Quarter (including its
            permitted Grace Period), if Paradigm has achieved no Production
            Target Levels at a level requiring payment pursuant to Article 4.1.4
            during a period of three (3) consecutive Project Quarters ending
            with such Project Quarter (including permitted Grace Periods), or
            (b) after the fourth Project Quarter or any subsequent Project
            Quarter (including its permitted Grace Period), if Paradigm has
            achieved no Production Target Levels at a level requiring payment
            pursuant to Article 4.1.4 during fifty percent (50%) or more of the
            completed Project Quarters (including permitted Grace Periods). In
            the event of termination for failure to achieve Production Target
            Levels as set forth above,

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<PAGE>

            Monsanto shall not be obligated to make any research funding
            payments pursuant to Articles 4.1.3 or 4.1.4 to Paradigm that are
            due more than thirty (30) days after notice has been given. Monsanto
            will have no right to recoup any monies already paid to Paradigm
            prior to termination under this Article 3.5.2.

     3.5.3  Early Termination - Other Reasons

            Either party may terminate this Agreement by reason of failure to
            cure a material breach by the other party or upon bankruptcy,
            insolvency, and dissolution or winding up of the other party. Any
            such termination will require written notice from the terminating
            party, specifying, in reasonable detail, the breach or other basis
            of the termination. The breaching party will be given 60 days from
            receipt of such written notice to cure the breach pursuant to this
            Article 3.5.3 prior to actual termination. If the breach is cured
            during such period, the notice will have no force or effect.

     3.5.4  Extension

            Paradigm and Monsanto will meet during the twenty-first Project
            Quarter to determine the conditions and terms on which the project
            would be extended beyond 6 years. No extension will occur except
            upon mutual agreement of the parties.

     3.5.5  Surviving Paragraphs

            Termination of this Agreement for any reason other than Articles
            3.5.2 and 3.5.3 shall not terminate the provisions set forth in
            Articles 2, 4.2, 4.3, 4.4, 5, 6, 7, 8, 9, 10 and 11. The rights and
            obligations of these Articles shall continue in full force and
            effect following any such termination. If Monsanto terminates the
            Agreement under Articles 3.5.2 or Article 3.5.3, then all the above
            Articles shall survive except for Articles 2.9 and 2.10. Upon any
            termination, Monsanto DNA Information shall only include that DNA
            that has been analyzed and reported to Monsanto under the Project
            Plan.

                                 4.  PAYMENTS
                                     --------

4.1  Project Funding

     Monsanto agrees to fund the Project Plan over the Term of this Agreement as
     set forth below:

     4.1.1  Inducement Fee

            As an inducement to Paradigm to commit assets and personnel and
            undertake the obligation to conduct the Project Plan over the
            Term of this Agreement, Monsanto agrees to pay Paradigm ten million
            dollars ($10,000,000) of which [___________________________________
            __________________]* shall be paid upon execution and [___________
            _______________]* shall be paid by January 17, 2000.

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            4.1.1.1  Termination Refund

                     In the event that this Agreement is terminated within
                     eighteen (18) months of Project Commencement Date due to a
                     breach by Paradigm, Paradigm shall refund Monsanto
                     [____________ ___________________]*.

     4.1.2  Annual Technology Enhancement Fee

            Paradigm shall invest during project years 1-5 at least [_________
            _______________________________]* in new technology, either
            externally or internally. Such investments shall be approved by the
            Project Committee, which approval shall not be unreasonably
            withheld.

     4.1.3  Quarterly Payment

            Monsanto will pay Paradigm the fees set out in Appendix D as
            compensation for Paradigm's services under the Project Plan for each
            Project Quarter at the beginning of each Project Quarter.

     4.1.4  Production Target Level Payments

            For each quarter in which Paradigm meets at least 80% (except as set
            forth below) of the quarterly Production Target Level, set out in
            Appendix C, during the Project Quarter or within the permitted Grace
            Period, Monsanto will pay Paradigm the Production payment according
            to the following formula:

            Production payment =
            [Production payment set forth in Appendix E] * [[[actual
            deliverable/Production Target Level]-1]*2]+1:
            wherein if [actual deliverable/Production Target Level] 0.8,
            then Production payment =0 (except as set forth below); and
            wherein Production payment cannot be greater than 1.4 *
            [Production payment set forth in Appendix D]; and wherein sum of
            all Production payments cannot be greater than
            [_____________________________________________ ___________]*,
            unless one or more of the options in Article 4.1.5 are exercised, in
            which event the sum of the Production payments cannot be greater
            than the aggregate total of the Production payments on the
            appropriate Appendices.
            Notwithstanding the foregoing, if during the last three (3)
            Project Quarters, there is an insufficient quantity of Monsanto
            DNA Information being analyzed under the Project Plan to allow
            the Production Target Level to be reached, then
            [___________________________________

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            ______]* for such quarter will be paid based on
            [_____________________ _________]* for such Project Quarter to the
            [______________________]* for such Project Quarter subject to the
            limit on the sum of all Production payments in the preceding
            paragraph.

            Such payment will be made within sixty (60) days of the
            demonstration of the achievement of the Production Target Level.

     4.1.5  Additional Optional Projects

            The following changes to the Project Plan will occur upon proper
            notice from Monsanto to Paradigm

            4.1.5.1.  Rice Option

            Provided that Monsanto gives Paradigm at least six (6) months
            written notice of its desire to add rice to the project, in
            addition to the project initially described in the Project Plan,
            Paradigm will add analyzing rice to the project. This expansion
            will begin as of the beginning of the fifth, sixth, seventh or
            eighth Project Quarter and continue for 20 Project Quarters. The
            Project Plan will be appropriately amended by the parties.
            Production Target Levels for rice are set out in Appendix E and
            quarterly and production payments for rice are set out in
            Appendix F.

            4.1.5.2.  Increase in Arabidopsis

            Provided that Monsanto gives Paradigm at least six (6) months
            written notice of its desire to increase the number of Arabidopsis
            genes to be analyzed, Paradigm will increase the number of genes to
            be analyzed in Arabidopsis by [____]* genes. This expansion will
            begin as of the beginning of the ninth, tenth, eleventh or twelfth
            Project Quarter and continue for 20 Project Quarters, with the Term
            of this Agreement being appropriately extended The Project Plan will
            be appropriately amended by the parties. Production Target Levels
            for this option are set out in Appendix G and quarterly and
            production payments for this option are set out in Appendix H.

            4.1.5.3  Increase in Arabidopsis

            Provided that Monsanto gives Paradigm at least six (6) months
            written notice of its desire to increase the number of Arabidopsis
            genes to be analyzed, Paradigm will increase the number of genes to
            be analyzed in Arabidopsis by [____]* genes. This expansion will
            begin as of the beginning of the ninth, tenth, eleventh or twelfth
            Project Quarter and continue for 24 Project Quarters with the Term
            of this Agreement being appropriately extended. The Project Plan
            will be appropriately amended by the parties. Production Target
            Levels for this option are set out in

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            Appendix I and quarterly and production payments for this option are
            set out in Appendix J.

            4.1.5.4 Impact of Expansion - Production Target Level Measurement

            Each Production Target Level set out in the appendices will be
            measured independently with Arabidopsis deliverables counted toward
            the Production Target Levels set forth in Appendix C first up to
            100% of the Production Target Levels set forth in Appendix C and the
            remainder applied to the expansion in Articles 4.1.5.2 or 4.1.5.3,
            whichever applies. Production payments for each expansion shall be
            calculated pursuant to the formula set forth in Article 4.1.4. In
            addition, failure to achieve Production Target Levels for any
            expansion in Articles 4.1.5.1, 4.1.5.2 and 4.1.5.3 as described in
            Article 3.5.2 shall only give rise to a right of termination of the
            expansion and not the original Project Plan unless the Production
            Target Levels of the original Project Plan are also not achieved as
            set out in Article 3.5.2.

            4.1.5.5  Impact of Expansion - right to terminate


            If Monsanto exercises its option under Article 4.1.5.1, 4.1.5.2, or
            4.1.5.3, then Monsanto's right to terminate this Agreement pursuant
            to Article 3.5.1 will terminate.

4.2  Royalties - Monsanto Licensed Products

     Monsanto shall pay Paradigm a royalty of [_]* of the aggregate
     [__________]* of all Monsanto Licensed Products sold by Monsanto or its
     Affiliates or a licensee of Monsanto (except in the case of a bare
     sublicense as provided in Article 4.3) subject to the following conditions:

     4.2.1  Minimum Royalty

            The minimum annual royalty to be paid by Monsanto will be
            [_____________________________________]* for each trait within
            Monsanto Licensed Products that is covered by Licensed Patent
            Rights, provided such trait is used in a crop in Appendix A,
            otherwise the minimum royalty shall be [_______________________]*
            subject to Article 4.2.2. If earned royalties paid pursuant to
            Article 4.2 do not reach this amount, the balance will be paid with
            the report delivered for the second half of each annual period
            (either fiscal or calendar) pursuant to Article 5.1. By way of
            illustration, engineering drought resistance into corn and soybeans
            would be a single trait, regardless of the number of genes used to
            achieve that trait, with a minimum annual royalty of

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<PAGE>

            [_______]* and engineering drought resistance and freeze resistance
            into corn would be two traits with a minimum annual royalty of
            [_______]*.

     4.2.2  One Royalty

            Royalties shall be paid by Monsanto on a product-by-product basis.
            Only one royalty shall be due and payable to Paradigm by Monsanto
            regardless of the number of patents included in the Licensed Patent
            Rights practiced by Monsanto and its Affiliates and sublicensees in
            connection with the production and commercialization of a particular
            Licensed Product, provided, such royalty shall reflect [___]* of the
            total aggregate [__________]* of such Licensed Product.

     4.2.3  Third Party Royalty Offset.

            In the event that Monsanto owes royalties directly or indirectly to
            an independent third party for licenses to intellectual property
            necessary for use of Licensed Patent Rights in the commercialization
            of Licensed Products, then Monsanto may offset against royalties due
            to Paradigm an amount [__________________________________________]*
            being paid to Paradigm with respect to the relevant Licensed Product
            (e.g., where Paradigm receives a royalty of
            [__________________________]*, Monsanto would be entitled to an
            offset equal to [_____________]* of such royalties paid to third
            parties). By way of illustration and without limitation, if the
            [__________]* for a particular Licensed Product is[_______________
            _____________]* and Monsanto owes a royalty to a third party with
            respect to such Licensed Product of [__________________]*, then the
            royalty due to Paradigm with respect to such Licensed Products would
            be [__________________________________]*. Such offsets will not
            affect Monsanto's obligation to pay minimum royalties pursuant to
            Article 4.2.1.

     4.2.4  Monsanto Royalty Buy-Out

            Monsanto shall have an option to negotiate with Paradigm with
            respect to a one-time payment to Paradigm with respect to each or
            all Monsanto Licensed Product in lieu of paying any further
            royalties on such products. The parties shall conduct such
            negotiation in good faith, but neither shall be obligated to agree
            to any buy-out.

4.3  License or sublicense of Licensed Patent Rights by Monsanto.

     If Monsanto grants a license or sublicense of Licensed Patent Rights to a
     third party non-Affiliate without providing such licensee or sublicensee
     with a Licensed Product, Monsanto shall pay Paradigm [___________________]*
     of Product Sublicense Payments received for such license or sublicense by
     Monsanto, unless the grant is for a crop listed in Appendix A, in which
     case

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     Monsanto shall pay Paradigm [_________________]* of Product Sublicense
     Payments received for such license or sublicense by Monsanto. All such
     payments shall apply against the minimum royalty payments set forth in
     Article 4.2.1.

4.4  Royalties - Paradigm Licensed Products

     Paradigm shall pay Monsanto [____________________________________
     _________________________________________________________________]*
     received for any license or sublicense granted by Paradigm under the
     license granted to it by Article 2.6.

4.5  Valuation of Non-Monetary Consideration for Product Sublicense Payments:

     Paradigm or Monsanto can accept non-monetary consideration for the sale of
     any product or the grant of any license or sublicense for which Product
     Sublicense Payments are to be calculated under this Article, provided that
     such non-monetary consideration can be reasonably valued.

                                  5.  RECORDS
                                      -------

5.1  Payments of Royalties

     Within ninety (90) days of the end of the applicable semi-annual period
     (either fiscal or calendar) following the first commercial sale of a
     Licensed Product and within ninety (90) days after the end of each six
     months thereafter, the party selling or receiving value for such Licensed
     Product shall make a written report to the other party setting forth the
     information, including that of Affiliates and licensees or sublicensees,
     necessary to permit the other party to calculate and confirm the royalty
     payment due the other party, even if no royalty payment is due. At the time
     each report is made, the party selling or receiving value shall pay to the
     other party the royalties shown by such report to be payable hereunder.
     Payments due on sales in foreign currency shall be calculated in United
     States dollars on the basis of the rate of exchange in effect for purchase
     of dollars at Chase Manhattan Bank, New-York, New York, on the last
     business day of the last-preceding June or December, whichever shall be
     later. Payments shall be without set off and free and clear of any taxes,
     duties, fees or charges other than withholding taxes, if any. Payment shall
     be made by wire transfer to an account in the United States which the other
     party may designate from time to time by prior, written notice.

5.2  Books and Records for Royalty Payments

     Each party shall keep, and shall cause its Affiliates, licensees and
     sublicensees to keep, books and records in such reasonable detail as will
     permit the reports provided for in this Article hereof to be made and the
     royalties payable hereunder to be determined. Each party further agrees to
     permit each party's and their

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     Affiliates books and records to be inspected and audited from time to time
     (but not more often than once annually) during reasonable business hours by
     an independent auditor, designated by the holder of such books and records
     and approved by the other party, which approval will not be unreasonably
     withheld, to the extent necessary to verify the reports provided for in
     this article provided, however, that such auditor shall indicate to the
     other party only whether the reports and royalties paid are correct, and if
     not, the reason why not. In the event that such an audit results in
     additional royalties being owed to the other party, such royalties shall be
     paid within sixty (60) days from notice of deficiency along with interest
     calculated as from the date the correct payment was due to the date of
     actual payment at an annual rate of five (5) percentage points above the
     prime rate quoted by Chase Manhattan Bank, New York, New York, on the day
     payment was due, until paid; and if the original payment was more than five
     percent (5%) less than it should have been, the cost of the audit shall be
     reimbursed.

5.3  Late Payment of Royalties

     If any royalties owed under this Agreement are not paid when due, the
     unpaid amount shall bear interest, compounded annually, at an annual rate
     of five (5) percentage points above the prime rate quoted by Chase
     Manhattan Bank of New York on the day payment was due, until paid or
     offset.

                           6.  INTELLECTUAL PROPERTY
                               ---------------------

6.1  Ownership of Project Technology Other Than Gene Patent Rights.

     Except as set forth in Article 2.1 of this Agreement (which covers Gene
     Patent Rights): (i) any Project Technology and any patent applications and
     patents claiming Project Technology first conceived or discovered by one or
     more employees of Monsanto shall belong to Monsanto ("Monsanto Patents");
     (ii) any Project Technology and any patent applications and patents
     claiming an Project Technology first conceived or discovered by one or more
     employees of Paradigm shall belong to Paradigm ("Paradigm Patents"); and
     (iii) any Project Technology and any patent applications and patents
     claiming any Project Technology first conceived or discovered jointly by
     one or more employees of Monsanto and one or more employees of Paradigm
     shall belong jointly to Monsanto and Paradigm ("Joint Patents"). Each owner
     of any Joint Patent shall be free to exploit its undivided interest in such
     Joint Patent. Inventorship shall be determined in accordance with United
     States patent laws.

6.2  Disclosure of Patentable Inventions

     In addition to the disclosures otherwise required under this Agreement,
     each party shall submit a written report to the other within sixty (60)
     days of the end of

                                       20
<PAGE>

     each Project Quarter summarizing any invention arising in the performance
     of the Project Plan during the prior Project Quarter which it believes may
     be patentable.

6.3  Access to Gene Patent Rights

     Monsanto shall provide Paradigm with access to inspect patent applications
     and prosecution files for Gene Patent Rights and to make copies of such
     files and prosecution files at its own expense and for its own internal use
     upon reasonable notice to Monsanto of Paradigm's intent to perform such
     inspection. Paradigm shall bear the out-of pocket costs of inspecting and
     copying such patent applications and prosecution files.

6.4  Patent Prosecution and Maintenance; Paradigm Patents

     Paradigm shall control the preparation, filing, prosecution and maintenance
     of all Paradigm Patents and be responsible for all costs associated
     therewith. In the event Paradigm elects not to file in a reasonable time or
     to cease prosecution of a filed application for a Paradigm Patent or to
     abandon an issued Paradigm Patent, Paradigm shall notify Monsanto not less
     than two (2) months before any relevant deadline, and Monsanto shall have
     the right to assume control over the prosecution of such filed application
     for a Paradigm Patent or maintenance of such issued Paradigm Patent.

6.5  Patent Prosecution and Maintenance; Monsanto Patents

     Monsanto shall control the preparation, filing, prosecution and maintenance
     of all Monsanto Patents and be responsible for all costs associated
     therewith. In the event Monsanto elects not to file in a reasonable time or
     to cease prosecution of a filed application for a Monsanto Patents or to
     abandon an issued Monsanto Patents, Monsanto shall notify Paradigm not less
     than two (2) months before any relevant deadline, and Paradigm shall have
     the right to assume control over the prosecution of such filed application
     for a Monsanto Patent or maintenance of such issued Monsanto Patent.

6.6  Patent Prosecution and Maintenance; Joint Patents

     The parties shall agree upon an outside law firm who shall prepare, file,
     prosecute and maintain Joint Patents under the joint instructions of the
     parties. All costs shall be shared equally. In the event Paradigm or
     Monsanto elects not to share or continue to share such costs of prosecution
     of a filed application for a Joint Patent or maintenance costs for an
     issued Joint Patent, it shall notify the other party not less than two (2)
     months before any relevant deadline, and the other party shall have the
     right to assume sole control over the prosecution of such filed application
     for a Joint Patent or maintenance of such issued Joint Patent. In such
     event, the party which assumes such control shall have title to such Joint
     Patent and the other party agrees to execute the appropriate documents to
     assign such patent to the other party.

                                       21
<PAGE>

6.7  Gene Patent Rights

     6.7.1  Disclosure

            Each party shall promptly disclose to the other any invention made
            during the Term of this Agreement by such party which may reasonably
            be expected to be the subject of a Gene Patent Right. In order to
            safeguard Monsanto's right to prepare, file and prosecute Gene
            Patent Rights, Paradigm will not file any patent application which
            discloses the sequence, composition or function of any Monsanto DNA
            Information until the earlier of: (i) receipt of notice from
            Monsanto that a patent application has been filed on such Gene
            Patent Rights; or (ii) six (6) months after disclosure by Paradigm
            to Monsanto that it seeks to file a patent application that would
            disclose the sequence, composition or function of Monsanto DNA
            Information, unless the parties mutually agree to extend such time.

     6.7.2  Prosecution of applications

            Monsanto shall control the preparation, filing, prosecution and
            maintenance of all Gene Patent Rights and be responsible for all
            costs associated therewith. Monsanto will notify Paradigm of the
            filing of each application for a Gene Patent Right within five (5)
            days of such filing and provide Paradigm with a copy of such
            application. In the event Monsanto elects not to file a patent
            applications, ceases prosecution of a filed application for a Gene
            Patent Right or decides to abandon an issued Gene Patent Right,
            Monsanto shall notify Paradigm as early as possible, but not less
            than one (1) month before any relevant deadline, and Paradigm shall
            have the right to assume control over the filing of an application
            for such Gene Patent Right, prosecution of such filed application
            for a Gene Patent Right or maintenance of such issued Gene Patent
            Right.

6.8  Cooperation

     Each party agrees to cooperate with the other in preparing and executing
     any documents necessary or useful to obtain patent protection on any
     invention that is subject to this Agreement in any country in the world.

6.9  Costs

     Each party shall retain control over and bear all expenses associated with
     the filing, prosecution and maintenance of patents on inventions made
     before the effective date of this Agreement by such party.

                                       22
<PAGE>

6.10  Patent Litigation: Right to Bring Suit

      Each party shall have the sole power to institute and prosecute at its own
      discretion and expense suits for infringement of their respective patent
      rights, provided that if Monsanto does not bring suit against a party who
      is alleged to be infringing any Gene Patent Right through the sale of a
      Paradigm Licensed Product within sixty (60) days of a request from
      Paradigm to bring such suit, then Paradigm may bring such suit in its own
      name or in the name of Monsanto. Each party agrees to cooperate with the
      other in any suit brought under this Article. All expenses in such suits
      will be borne entirely by the party bringing such suit and such party
      shall collect all judgments or awards arising from these suits. In the
      event a judgment or award is collected by the party bringing the suit,
      then the party not bringing the suit shall be entitled to any royalties or
      shares of Product Sublicense Payments which they would otherwise have been
      entitled to from the sale of Licensed Products by the infringer.

6.11  Confidential Treatment

      All information disclosed under this Article 7 shall be treated as
      Confidential Information under Article 8.

                              7.  CONFIDENTIALITY
                                  ---------------

7.1   Confidential Information:

      It is anticipated that it will be necessary, in connection with their
      obligations under this Agreement, for Paradigm and Monsanto, and
      Affiliates of either party, to disclose to each other confidential
      proprietary business and/or technical information ("Confidential
      Information") relating to their respective businesses, products and
      technologies. The Confidential Information shall include information
      disclosed in writing or other tangible form, including samples of
      materials.

7.2   Confidentiality and Limited Use:

      7.2.1 Limited Use:

            With respect to all Confidential Information, both Paradigm and
            Monsanto and Subsidiaries and wholly-owned Affiliates of either
            party agree as follows, it being understood that "recipient"
            indicates the party receiving the confidential, proprietary
            information from the other "disclosing" party. Confidential
            Information disclosed to the recipient shall remain the property of
            the disclosing party and shall be maintained in confidence by the
            recipient and shall not be disclosed to third parties or to
            Affiliates other than Subsidiaries or wholly-owned Affiliates by the
            recipient and, further, shall not be used except for purposes
            contemplated

                                       23
<PAGE>

            in this Agreement. All confidentiality and limited use obligations
            with respect to the Confidential Information shall terminate five
            (5) years after the termination date of this Agreement.

     7.2.2  Exceptions to Disclosure of Confidential Information:

            Notwithstanding any provision to the contrary, a party may disclose
            the Confidential Information of the other party: (i) in connection
            with an order of a court or other government body or as otherwise
            required by or in compliance with law or regulations; provided that
            the disclosing party provides the other party with notice and takes
            reasonable measures to obtain confidential treatment thereof; (ii)
            in confidence to attorneys, accountants, banks and financial sources
            and their advisors; or (iii) in confidence, in connection with a
            license, sublicense, or acquisition, permitted by this Agreement.

7.3  Exceptions to Classification as Confidential:

     The obligations of confidentiality and limited use shall not apply to any
     of the Confidential Information which

     7.3.1  Publicly Available:

            as of the date of disclosure is publicly available by publication or
            other documented means or later becomes likewise publicly available
            through no act or fault of recipient; or

     7.3.2  Already Known:

            is already known to recipient before receipt from the disclosing
            party, as demonstrated by recipient's written records; or

     7.3.3  Third Party Disclosure:

            is made known to recipient by a third party who did not obtain it
            directly or indirectly from the disclosing party and who does not
            obligate recipient to hold it in confidence.

7.4  Specific Information:

     Specific information shall not be deemed to be within any of these
     exclusions merely because it is embraced by more general information
     falling within these exclusions.

                                       24
<PAGE>

7.5  Disclosures to Personnel:

     Recipient agrees to advise those of its officers, directors, stockholders,
     employees, associates, agents, consultants, and Affiliates who become aware
     of the Confidential Information, of these confidentiality and limited use
     obligations and agrees, prior to any disclosure of Confidential Information
     to such individuals or entities, to make them bound by obligations of
     confidentiality and limited use of the same stringency as those contained
     in this Agreement.

7.6  Return of Confidential Information:

     Upon termination of this Agreement, originals and copies of Confidential
     Information in written or other tangible form will be returned to the
     disclosing party by recipient or destroyed by recipient, except to the
     extent that it is the subject of a continuing license or other right of
     use. One copy of each document may be retained in the custody of the
     recipient's legal counsel solely to provide a record of what disclosures
     were made.

7.7  Confidential Status of Agreement:

     The terms and existence of this Agreement shall be deemed to be
     Confidential Information and shall be dealt with according to the
     confidentiality requirements of this Article. Both parties agree,
     furthermore, that neither party will make public disclosures concerning
     other specific terms of this Agreement without obtaining the prior written
     consent of the other party, which consent shall not be unreasonably
     withheld. Notwithstanding the foregoing, at such time as Paradigm or
     Monsanto may request, the parties shall mutually agree on a press release
     announcing the execution of this Agreement and the basic terms hereof. Once
     any written statement is approved for disclosure by both parties, either
     party may make subsequent public disclosures of the contents of such
     statement without the further approval of the other party.

7.8  Disclosure to Third Parties

     7.8.1  Consultants

            Monsanto and Paradigm will be permitted to share Project Technology
            with third parties who have signed a funded research agreement which
            obligates the third party to do research for the party, maintain the
            Project Technology confidential and to assign all inventions and
            discoveries arising from the Project Technology to the party to the
            agreement (either Monsanto or Paradigm). The parties will inform
            each other which such third parties have been given access to
            Project Technology.

                                       25
<PAGE>

     7.8.2  Investors

            Paradigm may disclose Confidential Information to current and future
            Paradigm investors and other sources and potential sources of
            financing so long as, in each case, the entity to which disclosure
            is made is bound to confidentiality on terms consistent with those
            set forth herein. With respect to Project Technology, such investors
            and other sources of financing are to be given a summary of
            Confidential Information related to Project Technology, including a
            summary of patent information, which the investors can use for
            investment purposes only. Such summaries shall be reviewed and
            approved by Monsanto prior to any such disclosure, such approval
            shall not be unreasonably withheld. Paradigm shall make reasonable
            efforts to provide such summaries well in advance of any need to
            disclose such summaries. While Monsanto's approval will be deemed to
            have been given unless Monsanto notifies Paradigm of its disapproval
            within ten (10) days after receipt of the summary, Paradigm agrees
            to extend this time period if practicable upon the request of
            Monsanto.

7.9  Publications

     It is expected that each party may wish to publish the results of its
     research under this Agreement. Contributions by the other party shall be
     acknowledged in any publication by the publishing party. In order to
     safeguard intellectual property rights, the party wishing to publish or
     otherwise publicly disclose material which describes or otherwise discloses
     the other party's Confidential Information or Project Technology shall
     first submit a draft of any proposed manuscript to the Project Committee
     for review, comment and consideration of appropriate patent application
     preparation activity at least sixty (60) days prior to any submission for
     publication or other public disclosure. The Project Committee will advise
     the party seeking publication as to whether a patent application will be
     prepared and filed or whether Confidential Information should be removed
     from the disclosure. The Project Committee will, in cooperation with both
     parties, determine the appropriate timing and content of any such
     publications. The Project Committee can, in its discretion, request that
     the publishing party delay publication for a reasonable time period for the
     purpose of preparation of an appropriate patent application(s). If the
     Project Committee is no longer functioning, its responsibilities under this
     Article 7.9 will be assigned to a committee consisting of one person
     designated by Monsanto and one person designated by Paradigm.

                       8.  REPRESENTATION AND WARRANTIES
                           -----------------------------

8.1  Monsanto

     Monsanto represents and warrants that it has the right to make conveyances
     and grants in accordance with the Articles hereof, including, without
     limitation, the delivery of the Monsanto DNA Information and the grant of
     rights to use Monsanto Enabling Technology. It is expressly understood,
     however, that in

                                       26
<PAGE>

     making the conveyances and grants under this Agreement with the exception
     of the foregoing provisions of this paragraph, Monsanto MAKES NO
     REPRESENTATION, EXTENDS NO WARRANTIES, EITHER EXPRESS OR IMPLIED, AND
     ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO:

     1)   THE SCOPE OR VALIDITY OF ANY PATENT WHICH MAY FALL WITHIN LICENSED
          PATENT RIGHTS;

     2)   ANY USE OF LICENSED PRODUCT OR MONSANTO ENABLING TECHNOLOGY BEING FREE
          FROM INFRINGEMENT OF PATENTS OTHER THAN THE MONSANTO PATENTS CLAIMING
          MONSANTO ENABLING TECHNOLOGY OR LICENSED PATENT RIGHTS.

8.2  Paradigm

     Paradigm represents and warrants that it has the right to make conveyances
     and grants in accordance with the articles hereof. Paradigm does not
     warrant that any use of the Project Technology database is without
     liability to any third party or without a need to obtain a license from
     such third party. Except as set forth in the first sentence of this
     paragraph, Paradigm MAKES NO REPRESENTATION, EXTENDS NO WARRANTIES, EITHER
     EXPRESS OR IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT
     TO:

     1)   THE SCOPE OR VALIDITY OF ANY PATENT WHICH MAY FALL WITHIN LICENSED
          PATENT RIGHTS;

     2)   ANY USE OF LICENSED PRODUCT BEING FREE FROM INFRINGEMENT OF PATENTS
          OTHER THAN THE LICENSED PATENT RIGHTS.

8.3  Third Party Obligation

     Paradigm has informed Monsanto that it has an exclusive herbicide discovery
     project with a third party that involves functional analysis of Arabidopsis
     genes. Paradigm shall not conduct research for Monsanto relating to the
     identification and development of novel genes, and/or gene products, gene
     functions and assays useful to measure the potential herbicidal activity of
     chemical compounds or substances. Notwithstanding the above provisions in
     Article 2.1, Monsanto will not own inventions in the field of herbicides
     made by Paradigm or any patent application or patent based on such
     inventions and Paradigm will grant no rights to Monsanto with respect to
     inventions in the field of herbicides or with respect to any patent
     application or patent based on such inventions.

                                       27
<PAGE>

                              9.  INDEMNIFICATION
                                  ---------------

9.1  GENERAL -PARADIGM

     EXCEPT TO THE EXTENT CAUSED BY MONSANTO'S NEGLIGENCE OR WILLFUL MISCONDUCT,
     OR ARISING FROM A BREACH BY MONSANTO OF ITS WARRANTIES UNDER ARTICLE 8.1
     ABOVE, PARADIGM SHALL DEFEND AND INDEMNIFY AGAINST, AND HOLD MONSANTO AND
     ITS EMPLOYEES, DIRECTORS, OFFICERS AND AGENTS HARMLESS FROM, ANY LOSS,
     COST, LIABILITY OR EXPENSE (INCLUDING COURT COSTS AND REASONABLE FEES OF
     ATTORNEYS AND OTHER PROFESSIONALS) INCURRED FROM ANY CLAIM ARISING OR
     ALLEGED TO ARISE OUT OF THE MANUFACTURE, USE, DISTRIBUTION OR SALE BY
     PARADIGM OR ANY PARADIGM AFFILIATE OF ANY LICENSED PRODUCT; PROVIDED,
     HOWEVER, THAT (I) PARADIGM SHALL HAVE SOLE CONTROL OF SUCH DEFENSE, AND
     (II) MONSANTO SHALL PROVIDE NOTICE PROMPTLY TO PARADIGM OF ANY ACTUAL OR
     THREATENED CLAIM OF WHICH MONSANTO BECOMES AWARE.

9.2  GENERAL -MONSANTO

     EXCEPT TO THE EXTENT CAUSED BY PARADIGM'S NEGLIGENCE OR WILLFUL MISCONDUCT,
     OR ARISING FROM A BREACH BY PARADIGM OF ITS WARRANTIES UNDER ARTICLE 8.2
     ABOVE, MONSANTO SHALL DEFEND AND INDEMNIFY AGAINST, AND HOLD PARADIGM AND
     ITS EMPLOYEES, DIRECTORS, OFFICERS AND AGENTS HARMLESS FROM, ANY LOSS,
     COST, LIABILITY OR EXPENSE (INCLUDING COURT COSTS AND REASONABLE FEES OF
     ATTORNEYS AND OTHER PROFESSIONALS) INCURRED FROM ANY CLAIM ARISING OR
     ALLEGED TO ARISE OUT OF (A) THE MANUFACTURE, USE, DISTRIBUTION OR SALE BY
     MONSANTO, ANY MONSANTO AFFILIATE, OR ANY MONSANTO LICENSEE OR SUBLICENSEE
     OF ANY PRODUCT CONTAINING ANY LICENSED PRODUCT; OR (B) THE INFRINGEMENT OF
     ANY PATENT, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT OF ANY THIRD
     PARTY AS A RESULT OF THE USE OF ANY MONSANTO DNA INFORMATION IN THE PROJECT
     PLAN; PROVIDED, HOWEVER, THAT (I) MONSANTO SHALL HAVE SOLE CONTROL OF SUCH
     DEFENSE, AND (II)PARADIGM SHALL PROVIDE NOTICE PROMPTLY TO MONSANTO OF ANY
     ACTUAL OR THREATENED CLAIM OF WHICH PARADIGM BECOMES AWARE.

9.3  OTHER LOSS

     EXCEPT TO THE EXTENT PROVIDED FOR IN THIS AGREEMENT, NEITHER PARTY
     SHALL BE LIABLE TO THE OTHER FOR ANY LOSS OF

                                       28
<PAGE>

     PROFITS, LOSS OF BUSINESS, INTERRUPTION OF BUSINESS, INDIRECT, SPECIAL OR
     CONSEQUENTIAL DAMAGES OF ANY KIND SUFFERED BY SUCH OTHER PARTY FOR BREACH
     HEREOF, WHETHER BASED ON CONTRACT OR TORT CLAIMS OR OTHERWISE, EVEN IF SUCH
     PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS.

                              10.  APPLICABLE LAW
                                   --------------

10.1 Governing Law; Jurisdiction

     THE VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT AND ANY
     DISPUTE CONNECTED WITH THIS AGREEMENT SHALL BE GOVERNED BY AND DETERMINED
     IN ACCORDANCE WITH THE STATUTORY, REGULATORY AND DECISIONAL LAW OF THE
     STATE OF DELAWARE (EXCLUSIVE OF SUCH STATE'S CHOICE OR CONFLICTS OF LAWS
     RULES) AND, TO THE EXTENT APPLICABLE, THE FEDERAL STATUTORY, REGULATORY AND
     DECISIONAL LAW OF THE UNITED STATES (EXCEPT FOR THE U.N. CONVENTION ON
     CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS, APRIL 10, 1980, U.N. DOC.
     A/CONF. 97/18, 19 I.L.M. 668, 671 (1980) REPRINTED IN PUBLIC NOTICE, 52
     FED. REG. 662-80 (1987), WHICH IS HEREBY SPECIFICALLY DISCLAIMED AND
     EXCLUDED).

                         11.  MISCELLANEOUS PROVISIONS
                              ------------------------

11.1 Notices:

     All notices and other communications required or permitted under this
     Agreement shall be deemed to be properly given when in writing and sent by
     registered or certified mail, postage prepaid or by reputable courier
     service providing evidence of delivery or by facsimile with receipt
     confirmation, to the other party at the address set forth below, or at such
     other address as either party may be in writing designate from time to time
     for these purposes.

If to Paradigm:     Paradigm Genetics Inc.
                    104 Alexander Drive, Building 2
                    P0 Box 14528
                    RTP, North Carolina, 27709
                    Attention: Chief Executive Officer
                    with a copy to: Chief Counsel, Paradigm Genetics

If to Monsanto:     Monsanto Company
                    700 Chesterfield Parkway North
                    St. Louis, Missouri 63198
                    Attention:  President, Ag

                                       29
<PAGE>

Copy to:            Monsanto Company
                    800 North Lindbergh Boulevard
                    St. Louis, Missouri 63167
                    Attention: Group Patent Counsel

11.2  Assignability:

      The rights and obligations acquired herein by the parties are not
      assignable, transferable or otherwise conveyable, in whole or part (by
      operation of law or otherwise) to any third party without the consent of
      other party, which shall not be unreasonably withheld, except that either
      party may, without such consent, assign its rights and obligations to any
      purchaser of all or substantially all of the assets of the party related
      to this Agreement or to any successor corporation resulting from any
      merger or consolidation of a party.

11.3  Dispute Resolution

      11.3.1  General

              All disputes which may arise under, out of, or in connection with
              this Agreement shall be resolved as follows:

      11.3.2   Parties Shall Meet

               First, the parties shall make all commercially reasonable efforts
               to resolve the dispute. If, after making all commercially
               reasonable efforts the parties cannot resolve the issue within
               six months after written notice of the dispute from one party to
               the other, then the parties may appoint one or more independent
               parties to assist in resolving the dispute through mediation
               ("mediation stage").

      11.3.3   CEOs Shall Meet

               If the mediation described above does not resolve the dispute,
               then the Chief Executive Officer of Monsanto and the Chief
               Executive Officer of the ultimate parent of Paradigm shall meet
               to resolve the dispute.

      11.3.4   Arbitration Trigger

               In the event such Chief Executive Officers shall not have
               resolved such matter within sixty (60) days of written request by
               one of such Chief Executive Officers for such a meeting, either
               party may initiate arbitration with respect to such dispute in
               accordance with paragraph 11.3.5 hereof.

                                       30
<PAGE>

     11.3.5  Arbitration Rules

             The arbitration proceeding shall be conducted in the City of New
             York, State of New York, United States of America, in accordance
             with the then existing commercial rules of the American Arbitration
             Association, and judgment upon the award rendered by the
             arbitrators may be entered in any court having jurisdiction
             thereof. The parties hereby agree that service of any notices in
             the course of such arbitration at their respective addresses as
             provided for in Article 11.1 of this Agreement shall be valid and
             sufficient. In any arbitration, the award shall be rendered by a
             majority of the members of a Board of Arbitration consisting of
             three (3) members, one of whom shall be appointed by Monsanto, the
             second by Paradigm, and the third by mutual agreement of the first
             two said arbitrators, and none of whom shall be affiliated with
             either party or its Affiliates. In the event of failure of said
             first two arbitrators to agree within sixty (60) days after
             commencement of the arbitration proceeding upon the appointment of
             the third member, the third arbitrator shall be appointed by the
             American Arbitration Association in accordance with its then
             existing rules.

             Notwithstanding the foregoing, in the event that either such party
             shall fail to appoint an arbitrator within thirty (30) days after
             commencement of the arbitration proceeding, such arbitrator and the
             third arbitrator shall be appointed by the American Arbitration
             Association in accordance with its then existing rules. For the
             purposes of this paragraph, the "commencement of arbitration
             proceeding" shall be deemed to be the date upon which a written
             demand for arbitration is received by the American Arbitration
             Association from one of the parties.

     11.3.6  Agreements to Agree

             The failure by the parties to agree on any matter expressed in this
             Agreement as a matter to be agreed upon by or determined by mutual
             agreement, decision, consent or approval of the parties shall not
             constitute a basis for the initiation by either party of litigation
             or arbitration. Any court having jurisdiction under this Article or
             any arbitrator shall have no power to decide any such matter to
             which such mutual agreement, decision or consent has not been
             obtained.

11.4 Tax Reporting:

     Monsanto and Paradigm shall treat all payments made by Monsanto under
     Article 4.1 as amounts paid for qualified research under section 41(b)(3)
     of the Internal Revenue Code of 1986.

                                       31
<PAGE>

11.5  Severability:

      In case any one or more of the provisions contained in this Agreement
      shall for any reason be held invalid, illegal or unenforceable in any
      respect, such invalidity, illegality or unenforceability shall not affect
      any other provisions hereof, but this Agreement shall be construed as if
      such invalid or illegal or unenforceable provisions had never been
      contained herein.

11.6  Counterparts:

      This Agreement may be executed in any number of counterparts, each of
      which shall be an original with the same effect as if the signatures
      thereto and hereto were upon the same instrument.

11.7  Headings:

      Headings as to the contents of particular Articles are for convenience
      only and are in no way to be construed as part of this Agreement or as a
      limitation of the scope of the particular Articles to which they refer.

11.8  Agreement references:

      All Articles referred to herein are Articles of this Agreement.

11.9  Appendices:

      The appended Appendices form an integral part of this Agreement.

11.10 Export Control:

      Notwithstanding any other provisions of this Agreement, Paradigm agrees to
      make no disclosure or use of any Monsanto information or Monsanto
      technology furnished or made known to Paradigm pursuant to this Agreement,
      and Monsanto agrees to make no disclosure or use of any Paradigm
      information, Paradigm technology or Improvements disclosed to Monsanto
      pursuant to this Agreement except in compliance with the laws and
      regulations of the United States of America, including the Export
      Administration Regulations promulgated by the Office of Export
      Administration International Trade Administration, United States
      Department of Commerce; and in particular, each party agrees not to
      export, directly or indirectly, either

      the technical data furnished or made known to it by the other party
      pursuant to this Agreement; or

      the "direct product" thereof; or

                                       32
<PAGE>

       any commodity produced using such technical data to any country or
       countries for which a validated license is required unless a validated
       license is first obtained pursuant to the Export Administration
       Regulations. The term "direct product" as used above, is defined to mean
       the immediate product (including process and services) produced directly
       by the use of the technical data.

11.11  Force Majeure:

       Except for payments of money, neither of the parties shall be liable for
       any default or delay in performance of any obligation under this
       Agreement caused by any of the following: Act of God, war, riot, fire,
       explosion, accident, flood, sabotage, compliance with governmental
       requests, laws, regulations, orders or actions, national defense
       requirements or any other event beyond the reasonable control of such
       party; or labor trouble, strike, lockout or injunction (provided that
       neither of the parties shall be required to settle a labor dispute
       against its own best judgment).

       The party invoking this subparagraph shall give the other party notice
       and full particulars of such force majeure event by telephone, telegram,
       telex or facsimile as soon as possible after the occurrence of the cause
       upon which said party is relying. Telephone, telegram, telex and
       telecopier notices shall be confirmed in writing by the sending party
       within five (5) days.

       Both Monsanto and Paradigm shall use reasonable efforts to mitigate the
       effects of any force majeure on their respective part.

11.12  Negation of Agency:

       It is agreed and understood by the parties hereto that each of Paradigm
       and Monsanto, in its performance of its obligations and responsibilities
       under this Agreement, is an independent contractor and that nothing
       herein contained shall be deemed to create an agency, partnership, joint
       venture or like relationship between the parties. The manner in which
       each of Paradigm and Monsanto carries out its performance under this
       Agreement is within each of Paradigm's and Monsanto's sole discretion and
       control.

11.13  Other Requests:

       The parties hereto agree that upon reasonable request of the other party,
       each such party shall execute and deliver such additional documents and
       Agreements, and take such further actions, as may be necessary in order
       to fulfill and give effect to the terms of this Agreement.

                                       33
<PAGE>

11.14  Amendment and Waiver:

       This Agreement may be amended, modified, superseded or canceled, and any
       of the terms may be waived, only by a written instrument executed by each
       party or, in the case of waiver, by the party or parties waiving
       compliance. The delay or failure of any party at any time or times to
       require performance of any provisions shall in no manner affect the
       rights at a later time to enforce the same. No waiver by any party of any
       condition or of the breach of any term contained in this Agreement,
       whether by conduct, or otherwise, in any one or more instances, shall be
       deemed to be, or considered as, a further or continuing waiver of any
       such condition or of the breach of such term or any other term of this
       Agreement.

                                       34
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the Effective Date.


PARADIGM GENETICS INC.                  MONSANTO COMPANY



By________________________________      By______________________________


Date______________________________      Date____________________________

                                       35
<PAGE>

                                  APPENDICES

          Appendix A - Major Crops

          corn


          soybean


          wheat


          rice


          cotton


          canola


          oilseed rape

                                       36

<PAGE>

                           Appendix B - Project Plan

                               PROJECT OVERVIEW

Paradigm Genetics and MONSANTO are entering into a strategic relationship to
leverage MONSANTO's investment in genomics by accessing PARADIGM's functional
genomics expertise and capacity.  The objective of the relationship is to
develop a robust product discovery platform utilizing the strengths of both
parties.  MONSANTO will provide PARADIGM with [____]* genes for analysis in
Arabidopsis.  As shown in Table 1, these [____]* genes will be tested as
[_______ ___________________]* reflecting the combination of [_____]* and
[___________________]* illustrated in the table.  PARADIGM will use diligent
effort to provide a full data package that provides functional data to
strengthen or obtain intellectual property claims for each gene.  PARADIGM will
provide MONSANTO with customized data-packages concerning those genes including
the data from the experiments conducted in this project.   Elements of the
Project Plan are subject to change based on mutual agreement within the Project
Committee, as set forth in the AGREEMENT to which this Project Plan is attached.

                                     SCOPE

The goal is the functional analysis of [____]* genes, tested as
[_______________]* as shown in Table 1, over a period of [_______]* to determine
their function and to evaluate their
[____________________________________________]*. [_____________________________
________________________________________________________________________________
______________________]* for every gene are collected over the
[________________]* development cycle.  The outlined data collection package
will be applied to Arabidopsis [_______________________________]* completing
[__________________]*.  For [_________________]* exhibiting [_________________]*
at [___________________________]* data will be collected up to the point of
[___________]* and such data will be delivered as full data sets corresponding
to the respective gene.

                                 RESEARCH PLAN

                  Arabidopsis [________________]* Generation:

Up to [____]* genes will be provided by MONSANTO either as
[_______________________________________________________________________________
__________________________]* for the gene.  All of the genes will be
[_________]* and [_______]* into
[________________________________________________]* and subsequently
[________________]* Arabidopsis.  For all Arabidopsis genes, genes will also be
investigated by [______________________]*  The numbers of
[______________________________________________________________________________]
* assume investigation of a [____]* of genes of the following composition:

Table 1.
<TABLE>
<CAPTION>
Gene Class                     [_____]* CONSTRUCTS           [__________]* CONSTRUCTS
------------------------------------------------------------------------------------------
<S>                            <C>                           <C>
Arabidopsis                    [____]*                       [____]*
------------------------------------------------------------------------------------------
[_____________________]*       [____]*                       [____]*
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------

Total                          [____]*                       [____]*
------------------------------------------------------------------------------------------
</TABLE>

* Up to [____]* Arabidopsis [_________]* (corresponding to [___]*) of genes from
non-Arabidopsis [______]* or [___________________]* shall be used for
[_____________________]*.

                                      37

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

Composition of the [____]* of genes will not be changed unless otherwise
unanimously approved by the Project Committee, except that the number of
Arabidopsis genes may be increased with a corresponding decrease in
[___________________]* genes.  In the case of [_______________________________]*
gene [____]* numbers corresponding to
[__________________________________________________]* will be adjusted in
proportion to the agreed upon numbers.

Concerning the generation of DNA constructs for Arabidopsis transformation, the
procedures and exchange of materials outlined in Table 2 will be performed
depending on [__________________________]* gene:

Table 2.
<TABLE>
<CAPTION>
                  MONSANTO HAS       MONSANTO DELIVERS          PARADIGM DELIVERS
--------------------------------------------------------------------------------------------
<S>               <C>                <C>                        <C>
Arabidopsis       [_____]*           [_____]*                   [____________]*
                  [________]*        [_________]*               [____________]*
                                     [_____]*                   [____________]*
                                     [____]*                    [________]*
--------------------------------------------------------------------------------------------
ARABIDOPSIS       [________]*        [________]*                [____________]*
                  [_____]*           [____]*                    [____________]*
                                     [____]*                    [____________]*
                                     [____]*                    [____________]*
--------------------------------------------------------------------------------------------
ARABIDOPSIS       [________]*        [____________]*            [____________]*
                  [_____]*           [________]*                [____________________]*
                                     [____]*                    [________]*
                                                                [____________]*
--------------------------------------------------------------------------------------------
[___________]*    [________]*         [________]*               [____________]*
                  [_____]*            [____________]*           [____________________]*
                                      [________]*               [________________]*
                                      [________]*               [____________]*
                                      [____________]*           [________]*
--------------------------------------------------------------------------------------------
[___________]*    [________]*         [____________]*           [____________]*
                  [_____]*            [________]*               [________]*
                                      [____________]*           [____________]*
                                      [________]*               [________]*
                                      [____________]*           [____]*
--------------------------------------------------------------------------------------------
</TABLE>

Genes will be selected on a [_______]* basis.  [___]* Arabidopsis genes for
[__________________]* constructs are to be selected [____________]* of the
collaboration to secure progress of the scientific work schedule.  [___]*
additional genes for [_________________]* will be selected at the beginning of
[___________________________]*.  [___]* additional genes shall be selected at
the beginning of [_____________________]*.  [___]* genes will be selected in
[___]*.  This results in a selection of the total [____]* genes at the beginning
of [___]* of the collaboration.

For all non-Arabidopsis genes, MONSANTO will provide [_____________________]* as
well as [_____________________________________________________________]*
respective genes suitable for [_________]* in Arabidopsis using [_______]*
provided by PARADIGM as described above unless otherwise unanimously approved by
the PROJECT COMMITTEE.

All genes are to be [_____]* using [__________________________________________]*
based on the information provided by MONSANTO.  In case of non-successful
diligent performance of [________________________________________]*, the efforts
will be counted as [___]* of a data package.  [___]* is to be performed [_____]*
using [____]* as template and [____]* with [____________]* template.  If
[_________]* then a [____________]* of [____________]* shall be tested in the
same way.  The status of all [_______]* efforts is reported to MONSANTO on a
weekly basis (spreadsheets and telephone/e-mail follow-up).


                                      38

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* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

The preferred system to be used for [___________]* of all [___________]* is a
[________________]* system.  During the [___________]* of the collaboration,
[__]* genes will be investigated using
[__________________________________________________________________]* as well as
[_______________________________________________________________________________
________________]*.  MONSANTO will choose the [_________]* to be used in
consultation with PARADIGM.  The [____________________]* system used will be
comprised of a [___________________________________________]* and a
corresponding [_________________________________________________]*.  The
combined set of [____________________________]* will count as [__]* genes and
[___]* constructs (out of a total of [____]* genes and [____]* constructs).  If
the [________________]* system is determined to be at least as effective as
[__________________]*, then PARADIGM will use [___________________________]* for
the remainder of the Research Program.  In the interim, while the first [__]*
genes are being tested in parallel with [________________]* and
[__________________]*, PARADIGM intends to use [__________________]*.  At the
end of the comparison with the first [__]* genes a decision on the system to use
for the program will be made.

After [_________________________________________]*, the identity of all genes
will be confirmed by [_______________]*.

For all genes, functional analyses comprised of
[_______________________________________________________________________________
__________________]* will be performed.  All genes will be tested by
[_______________]* into Arabidopsis and the [________________________________]*.
It is intended that PARADIGM will generate sufficient [_________________]* for
each construct (a construct being [____________________________________]* for a
given gene) to have at least [_________________________________]* from which to
select the [________________________________________]* investigation.  This
decision will be based on an analysis of [___________]* of the
[________________________]* as described in this paragraph.  In the case of
using a [__________________]* system, levels of [___________]* of the
[___________]* are to be determined by [______]* for either the
[________________________________________________]*.  The first [__]* genes in
[____________________]* orientation will be evaluated for [___________]* of both
the [_____________________________________]*.  At this time it is anticipated
that selection of the [_______]* for each [__________]* for further
investigation will be based on selection of those that show the
[___________________________]*.  Upon initial evaluation of the data generated
from [__]* individual genes in which both [______________________________]* have
been determined, the PROJECT COMMITTEE will decide on a final procedure.

Generated [___________________]* as well as samples of [____]* from
[___________________________]* that were grown
[_______________________________________________________________________________
_______]* for the duration of the collaboration.  Extracts from
[______________]* will be [____________________]* after the final analysis is
performed.  [_______________________]* generated and used during the
collaboration will be stored for [______]* after the analysis of the
corresponding gene has been performed.  Reasonable amounts of these materials
will be made available to MONSANTO upon request.  This will include at least
[______________]* lots to allow [____________]* analysis of [________________]*
by MONSANTO.

                                      39

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

                         STANDARD [________________]*:

For every [________________]*, individual [______]* are to be investigated over
[________________________]*.  [___________]* data are to be collected from a
total of [________________________]*.  Early developmental stages will be
investigated on [____________]* or in
[___________________________________________]*.  Measurements are to be
performed on a regular schedule or at distinct growth stages as outlined in
Table 3.

Table 3.
<TABLE>
<CAPTION>
[_____]* MEASUREMENTS                                    Growth Stage
--------------------------------------------------------------------------
<S>                                                 <C>
[_________________________________]*                [____]*
--------------------------------------------------------------------------
[___________________________________]*              [____]*
--------------------------------------------------------------------------
[___________________________________]*              [____]*
--------------------------------------------------------------------------
[___________________________________]*              [____]*
--------------------------------------------------------------------------
[______________________________________]*           [____]*
--------------------------------------------------------------------------
[______________________________________]*           [____]*
--------------------------------------------------------------------------
[________________________________]*                 [____]*
--------------------------------------------------------------------------
[__________________________]*                       [__________]*
--------------------------------------------------------------------------
[__________________________]*                       [__________]*
--------------------------------------------------------------------------
[____________________]*                             [__________]*
--------------------------------------------------------------------------
[____________________________________]*             [__________]*
--------------------------------------------------------------------------
[_____________________________________]*            [__________]*
--------------------------------------------------------------------------
[_____________________________________]*            [__________]*
--------------------------------------------------------------------------
[______________________________________]*           [__________]*
--------------------------------------------------------------------------
[________________________]*                         [__________]*
--------------------------------------------------------------------------
[_______________________]*                          [_____________]*
--------------------------------------------------------------------------
[__________________________________]*               [_____________]*
--------------------------------------------------------------------------
[__________________________________]*               [_____________]*
--------------------------------------------------------------------------
[___________________________________]*              [_____________]*
--------------------------------------------------------------------------
[______________________________________]*           [_____________]*
--------------------------------------------------------------------------
[______________________________________]*           [______________]*
--------------------------------------------------------------------------
</TABLE>

Additional [_____]* Measurements from Table 4 can be performed as decided by the
Project Committee.

                                      40

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

Table 4.
<TABLE>
<C> <S>
 1  [_____________]*
-------------------------------------------------
 2  [__________________]*
-------------------------------------------------
 3  [_____________________]*
-------------------------------------------------
 4  [___________________]*
-------------------------------------------------
S   [____________________]*
-------------------------------------------------
 6  [_____________________]*
-------------------------------------------------
 7  [__________]*
-------------------------------------------------
 8  [______________]*
-------------------------------------------------
</TABLE>

[______________________]* will be investigated under
[__________________________]* in [_______________]*.  All [______]* shall be
grown under [______________________________________________________________]*
including [______________________________________________]* as well as [____]*
and [______________]* will be constantly monitored.  Measurements performed
are listed in Table 5.

Table 5.
<TABLE>
<CAPTION>
[____]* MEASUREMENTS                                 GROWTH STAGE
--------------------------------------------------------------------
<S>                                                <C>
[_____________________]*                           [____]*
--------------------------------------------------------------------
[__________________________]*                      [__________]*
--------------------------------------------------------------------
[________________]*                                [__________]*
--------------------------------------------------------------------
[______________________________]*                  [__________]*
--------------------------------------------------------------------
[____________________________]*                    [____]*
--------------------------------------------------------------------
[_________________________________]*               [____]*
--------------------------------------------------------------------
[_____________________________________]*           [____]*
--------------------------------------------------------------------
[______________]*                                  [__________]*
--------------------------------------------------------------------
[__________________]*                              [__________]*
--------------------------------------------------------------------
[_____________________]*                           [__________]*
--------------------------------------------------------------------
[__________________]*                              [__________]*
--------------------------------------------------------------------
[__________________]*                              [__________]*
--------------------------------------------------------------------
[_____________________]*                           [__________]*
--------------------------------------------------------------------
[____________________]*                            [__________]*
--------------------------------------------------------------------
[__________________________]*                      [____]*
--------------------------------------------------------------------
[_____________________________]*                   [____]*
--------------------------------------------------------------------
[_____________________________________]*           [____]*
--------------------------------------------------------------------
[__________________________________]*              [____]*
--------------------------------------------------------------------
[_________________________]*                       [__________]*
--------------------------------------------------------------------
[____________________________]*                    [__________]*
--------------------------------------------------------------------
[_________________________]*                       [__________]*
--------------------------------------------------------------------
[_______________]*                                 [__________]*
--------------------------------------------------------------------
[______________________]*                          [___________]*
--------------------------------------------------------------------
</TABLE>

                                      41

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

<TABLE>
<CAPTION>
[____]* MEASUREMENTS                                 GROWTH STAGE
--------------------------------------------------------------------
<S>                                                <C>
[________]*                                        [___________]*
--------------------------------------------------------------------
[____________]*                                    [____]*
--------------------------------------------------------------------
[______________]*                                  [___________]*
--------------------------------------------------------------------
[___________]*                                     [___________]*
--------------------------------------------------------------------
[____________]*                                    [___________]*
--------------------------------------------------------------------
[_____________]*                                   [___________]*
--------------------------------------------------------------------
[______________]*                                  [___________]*
--------------------------------------------------------------------
[___________]*                                     [____]*
--------------------------------------------------------------------
[___________]*                                     [____]*
--------------------------------------------------------------------
[______________]*                                  [____]*
--------------------------------------------------------------------
[__________]*                                      [____]*
--------------------------------------------------------------------
[___________]*                                     [____]*
--------------------------------------------------------------------
[____________]*                                    [____]*
--------------------------------------------------------------------
[______]*                                          [____]*
--------------------------------------------------------------------
[________]*                                        [____]*
--------------------------------------------------------------------
[__________]*                                      [____]*
--------------------------------------------------------------------
[_________]*                                       [____]*
--------------------------------------------------------------------
[_________]*                                       [____]*
--------------------------------------------------------------------
[________]*                                        [____]*
--------------------------------------------------------------------
[___________]*                                     [___________]*
--------------------------------------------------------------------
[__________]*                                      [___________]*
--------------------------------------------------------------------
[__________]*                                      [____]*
--------------------------------------------------------------------
[____________]*                                    [____]*
--------------------------------------------------------------------
[_____________]*                                   [____]*
--------------------------------------------------------------------
[_____________]*                                   [____]*
--------------------------------------------------------------------
[____________]*                                    [____]*
--------------------------------------------------------------------
[_________]*                                       [____]*
--------------------------------------------------------------------
[__________]*                                      [____]*
--------------------------------------------------------------------
[________]*                                        [____]*
--------------------------------------------------------------------
[______________]*                                  [____]*
--------------------------------------------------------------------
[______]*                                          [____]*
--------------------------------------------------------------------
[______]*                                          [____]*
--------------------------------------------------------------------
[________]*                                        [____]*
--------------------------------------------------------------------
[_________]*                                       [____]*
--------------------------------------------------------------------
[_______]*                                         [____]*
--------------------------------------------------------------------
[________]*                                        [____]*
--------------------------------------------------------------------
[_____________]*                                   [____]*
--------------------------------------------------------------------
[____________]*                                    [____]*
--------------------------------------------------------------------
[______________]*                                  [____]*
--------------------------------------------------------------------
</TABLE>

Additional measurements from Table 6 can be performed as decided by the PROJECT
COMMITTEE.

                                      42

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

Table 6.
<TABLE>
<C>  <S>
-------------------------------------------------
  1  [____________________]*
-------------------------------------------------
  2  [________]*
-------------------------------------------------
  3  [____________]*
-------------------------------------------------
  4  [________________]*
-------------------------------------------------
  5  [________]*
-------------------------------------------------
  6  [____]*
-------------------------------------------------
  7  [____________]*
-------------------------------------------------
  8  [____________]*
-------------------------------------------------
  9  [____________]*
-------------------------------------------------
 10  [____________]*
-------------------------------------------------
 11  [____________]*
-------------------------------------------------
</TABLE>

Data will be collected by [____________]* measurements of the [_____]* and from
[____]* of [________________________]*. Several traits including [____________]*
[_____________________________________________________________________________]*
[_____________________________________________________________________________]*
[____________]* will be used to define [___________________]*  as they develop.
[____________]* measurements will be taken [_________]* to determine particular
[______________]* at which [____________]* and [____________]* will be
performed. For [________________]*   [____________]*, analyses of the [______]*
generate between [___]* to [___]* individual [____________]* per gene of
interest. In addition, [_______]* will be taken from [________]*. During
[___________________]*, analyses of the [_____________]* will generate between
[_____]* to [______]* individual [_____________]* per [_________]*. In addition,
[_____]* will be taken from whole [________]* as well as [_______________]*.

In cases where [___________]* of the [___________]* (or [______________________
____________]* results in apparent [_______________]*, attempts will be made to
[_________]* with [_________________]* to [____________]*.


                        [_________________]* PROFILING:


At [_____________]*, [____________]* is to be [_________]* for [_______]*
analysis. The material is derived from individual [__________]* under [______]*
conditions as for the [__________]*. Material will be [__________]* from
[___________]* to generate a [_______________]* sample. All samples will be
submitted for [________________]* profiling, samples A) through C) from List 1
will be measured as [_______________]* from a [______________]* of tissue.
[_________________]* profiles include [______________]* and [_______________]*
analysis. For [____________]* profiling of [____________]*, special emphasis
is put on the analysis of [____________________________]*. Total [_________]*
will be quantified by [__________________]* profiling of [_________]* tissue
includes the determination of [________________________________________________
__________________]*. Specific methodologies will be applied upon agreement of
the PROJECT COMMITTEE.

                                      43

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

LIST 1.  HARVESTING TIME POINTS AND TISSUES:
A) [____________________________________________]*
B) [_________________________________________]*
C) [________________________________________________]*
D) [_____________________________]*
E) [_____________________________]*

Properties of the [_______________________________________________]*
o    The output is [________]* and [___________]* data of [_________]* levels
     in tissues. [______________]* levels will be defined relative to a
     [_______________________________________]*. [________________]* will be
     used to compare large data tables.
o    Sample throughput is [________]*; one set of instruments is capable of
     [_________]* per [___________]*.
o    Sample processing consists of [_________________________________________]*
     automation is used to [________________________]*.
o    [_______________]*: [_____________]* is accomplished with [__________]* or
     [____________]*. [____________________]* and [_____________________]* are
     used to [______________]* of [_______________]*. [___________]* will be
     subjected to [_________________]*, and [_______________]* are [_________]*
     by [____________________]*.
o    Detection: [_______________]* will be detected by [______________]* in the
     forms of [__________________]* , and [______________]*. [__________]* are
     to be analyzed by [____________________________]*.
o    Data Reduction: The [__________________]* instruments generate [_______]*
     of data per [_______________________]*. The [______________________]*.
     Quantitative data for specific [___________________]* will be delivered to
     MONSANTO, and these data will be updated and delivered to MONSANTO as the
     [_____________________]* of [_______________________]*.

Sample Processing and Extraction
Extraction efficiency was determined analytically for several [____________]*.
Tissue is to be placed in a [__________________________]* and [______________]*
with a [______________]* of [_________________]*. The tissue is disrupted
for [____________________]* at an [___________________________]*.

o    [_____________]* are obtained from the [_______________]* , following
     [_______________]* through [_____________]*, and [_____________]* under
     [____________________]*.
o    [___________________]* are [___________]* from the [_______]* via [____]*
     into [_____________]*. The [______________]* is subjected to [_________]*
     and [__________________________]*.
o    A portion of the [___________________________]* can be subjected to
     [________________________]* for eventual analysis of [__________]* and
     [____________]*, according to well established procedures.
o    [________________]* analysis is accomplished following [________]* of
     [____]* or [____________________]* tissue.

                               [___]* PROFILES

[_________________]* will be analyzed by [___________________]*. Primary focus
is the detection and quantitative analysis of [______________________]* and
[______________]*, the [_________]* comprise compounds of [_________]* (e.g.,
[________]* and [_________]* (e.g., [___________________________]*. From the
initiation of the research program PARADIGM will analyze all of the
[_________]* listed in Table 7 as well as trace [_________]* listed in this
paragraph. PARADIGM intends during the course of this agreement to attempt to
develop analytical capabilities to measure the components listed in Table 8. The
intention is to attempt to develop validated protocols for approximately
[___________________________]* and the remaining in the [__________________]*.
[___________________________]* listed in Table 8 have been abbreviated such
that Table 8 does not list all potential [__________________]* of various
[_________]* (e.g., [____________________________________]*. [__________________
___________]* are to be analyzed by total [__________________]* of tissue,
followed by [_________]*. [___________________________]* include [_________]*,
and other [__________________] components. PARADIGM will attempt to develop
validated protocols for the assays during the first [__________________]* for
all the [___________________________]* listed in Table 8 but which are not
listed in Table 7 below. PARADIGM will make a [_________]* to complete these
assays in the first [_______________]*.


                                      44

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

Table 7.
<TABLE>
<CAPTION>
[    ]*                                      PATHWAY               CLASS
-------------------------------------------------------------------------------------
<S>                                          <C>                <C>
[  ]*                                        [  ]*              [  ]*
-------------------------------------------------------------------------------------
[   ]*                                       [  ]*              [  ]*
-------------------------------------------------------------------------------------
[     ]*                                     [  ]*              [  ]*
-------------------------------------------------------------------------------------
[          ]*                                [  ]*              [  ]*
-------------------------------------------------------------------------------------
[      ]*                                    [  ]*              [  ]*
-------------------------------------------------------------------------------------
[   ]*                                       [  ]*              [  ]*
-------------------------------------------------------------------------------------
[      ]*                                    [  ]*              [  ]*
-------------------------------------------------------------------------------------
[    ]*                                      [  ]*              [  ]*
-------------------------------------------------------------------------------------
[   ]*                                       [  ]*              [  ]*
-------------------------------------------------------------------------------------
[    ]*                                      [  ]*              [  ]*
-------------------------------------------------------------------------------------
[  ]*                                        [  ]*              [  ]*
-------------------------------------------------------------------------------------
[   ]*                                       [  ]*              [  ]*
-------------------------------------------------------------------------------------
[         ]*                                 [  ]*              [  ]*
-------------------------------------------------------------------------------------
[      ]*                                    [  ]*              [  ]*
-------------------------------------------------------------------------------------
[      ]*                                    [  ]*              [  ]*
-------------------------------------------------------------------------------------
[      ]*                                    [  ]*              [  ]*
-------------------------------------------------------------------------------------
[    ]*                                      [  ]*              [  ]*
-------------------------------------------------------------------------------------
[  ]*                                        [  ]*              [  ]*
-------------------------------------------------------------------------------------
[     ]*                                     [  ]*              [  ]*
-------------------------------------------------------------------------------------
[    ]*                                      [  ]*              [  ]*
-------------------------------------------------------------------------------------
[    ]*                                      [  ]*              [  ]*
-------------------------------------------------------------------------------------
[      ]*                                    [  ]*              [  ]*
-------------------------------------------------------------------------------------
[    ]*                                      [  ]*              [  ]*
-------------------------------------------------------------------------------------
[       ]*                                   [  ]*              [  ]*
-------------------------------------------------------------------------------------
[    ]*                                      [  ]*              [  ]*
-------------------------------------------------------------------------------------
[     ]*                                     [  ]*              [  ]*
-------------------------------------------------------------------------------------
[      ]*                                    [  ]*              [  ]*
-------------------------------------------------------------------------------------
[    ]*                                      [  ]*              [  ]*
-------------------------------------------------------------------------------------
[     ]*                                     [  ]*              [  ]*
-------------------------------------------------------------------------------------
[     ]*                                     [  ]*              [  ]*
-------------------------------------------------------------------------------------
[      ]*                                    [  ]*              [  ]*
-------------------------------------------------------------------------------------
[          ]*                                [  ]*              [  ]*
-------------------------------------------------------------------------------------
[     ]*                                     [  ]*              [  ]*
-------------------------------------------------------------------------------------
[       ]*                                   [  ]*              [  ]*
-------------------------------------------------------------------------------------
[    ]*                                      [  ]*              [  ]*
-------------------------------------------------------------------------------------
</TABLE>

                                      45

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

Table 8.
<TABLE>
<CAPTION>
[    ]*                                      PATHWAY               CLASS
------------------------------------------------------------------------------------
<S>                                          <C>               <C>
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[     ]*                                     [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[        ]*                                  [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[        ]*                                  [  ]*             [  ]*
------------------------------------------------------------------------------------
[        ]*                                  [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[   ]*                                       [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[     ]*                                     [  ]*             [  ]*
------------------------------------------------------------------------------------
[  ]*                                        [  ]*             [  ]*
------------------------------------------------------------------------------------
[     ]*                                     [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[   ]*                                       [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[   ]*                                       [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[         ]*                                 [  ]*             [  ]*
------------------------------------------------------------------------------------
[         ]*                                 [  ]*             [  ]*
------------------------------------------------------------------------------------
[        ]*                                  [  ]*             [  ]*
------------------------------------------------------------------------------------
[        ]*                                  [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
</TABLE>

                                      46

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

<TABLE>
<CAPTION>
[    ]*                                      PATHWAY               CLASS
------------------------------------------------------------------------------------
<S>                                          <C>               <C>
[  ]*                                        [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[  ]*                                        [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[  ]*                                        [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[        ]*                                  [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[          ]*                                [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[           ]*                               [  ]*             [  ]*
------------------------------------------------------------------------------------
[         ]*                                 [  ]*             [  ]*
------------------------------------------------------------------------------------
[              ]*                            [  ]*             [  ]*
------------------------------------------------------------------------------------
[     ]*                                     [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[        ]*                                  [  ]*             [  ]*
------------------------------------------------------------------------------------
[        ]*                                  [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[         ]*                                 [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[     ]*                                     [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[     ]*                                     [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[  ]*                                        [  ]*             [  ]*
------------------------------------------------------------------------------------
[  ]*                                        [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
</TABLE>

                                      47

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  omitted and filed separately with the Commission.

<PAGE>

<TABLE>
<CAPTION>
[    ]*                                      PATHWAY               CLASS
------------------------------------------------------------------------------------
<S>                                          <C>               <C>
[     ]*                                     [  ]*             [  ]*
------------------------------------------------------------------------------------
[     ]*                                     [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[          ]*                                [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[          ]*                                [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[         ]*                                 [  ]*             [  ]*
------------------------------------------------------------------------------------
[          ]*                                [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[     ]*                                     [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[  ]*                                        [  ]*             [  ]*
------------------------------------------------------------------------------------
[   ]*                                       [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[         ]*                                 [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[                ]*                          [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[                    ]*                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[         ]*                                 [  ]*             [  ]*
------------------------------------------------------------------------------------
[  ]*                                        [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[  ]*                                        [  ]*             [  ]*
------------------------------------------------------------------------------------
[    ]*                                      [  ]*             [  ]*
------------------------------------------------------------------------------------
[          ]*                                [  ]*             [  ]*
------------------------------------------------------------------------------------
[      ]*                                    [  ]*             [  ]*
------------------------------------------------------------------------------------
[                  ]*                        [  ]*             [  ]*
------------------------------------------------------------------------------------
</TABLE>

                                      48

--------
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  omitted and filed separately with the Commission.

<PAGE>

<TABLE>
<CAPTION>
[    ]*                                      PATHWAY               CLASS
------------------------------------------------------------------------------------
<S>                                          <C>               <C>
[         ]*                                 [  ]*             [  ]*
------------------------------------------------------------------------------------
[                ]*                          [  ]*             [  ]*
------------------------------------------------------------------------------------
[             ]*                             [  ]*             [  ]*
------------------------------------------------------------------------------------
[          ]*                                [  ]*             [  ]*
------------------------------------------------------------------------------------
[        ]*                                  [  ]*             [  ]*
------------------------------------------------------------------------------------
[           ]*                               [  ]*             [  ]*
------------------------------------------------------------------------------------
[           ]*                               [  ]*             [  ]*
------------------------------------------------------------------------------------
[       ]*                                   [  ]*             [  ]*
------------------------------------------------------------------------------------
[            ]*                              [  ]*             [  ]*
------------------------------------------------------------------------------------
[          ]*                                [  ]*             [  ]*
------------------------------------------------------------------------------------
[            ]*                              [  ]*             [  ]*
------------------------------------------------------------------------------------
</TABLE>

                        GENE [______________________]*

Gene [___________]* of Arabodopsis genes is determined from [___________]* to
the samples collected under List 1 for [_______________]*. For each [_________
___________]* of about [_____________]* genes will be assayed in relation
to the [____________]* level of [_______________]* under [_______]* conditions.
This allows evaluation of the level of [_________]* of those [_________]* in
relation to all other information collected from the respective [_________]*,
and provides information about effects of [_________________________]* of each
gene on [_______________]* Arabidopsis gene[__________]*. These assays will be
conducted [_____________]* on [____________]* to those used for
[__________________________]*.

At least [______________]*, the committee will evaluate the data from gene
[_________________]* of the [_________________________]* to determine the
value and utility of gene [___________________]*. If MONSANTO determines that
gene [______________]* of additional [_____________]* is not warranted, then
the committee will substitute in the research plan additional analysis that is
equivalent in cost and work effort to PARADIGM. For example, MONSANTO may
determine that additional [______________]* analyses should be performed
instead of continuing with gene [___________________________________________]*.
The intention is to keep the cost and work load to PARADIGM approximately
equivalent.

                              [________________]*


Besides the [____]* conditions on [______]* and in [_____________]*, all
[________________]* are investigated for their response to different
[________________]*. These [________________]* are:

[_______________________________________________]*
[_________________________________]*
[______________________]*
[___________]*
[____________________________________________]*
[_________________________________]*


Specific protocols will be discussed and approved by the PROJECT COMMITTEE.

                              [________________]*

[_____________]* under [____________]* conditions and [____________]* by [___]*
after [_________]* become [_________]*. [____]* are [__]* for [_____]*
additional [_____]* or until [___]* (whichever is shorter). [______]* is
assessed by measuring the following [_____________]* until [___________]*.

--------------------------------------------------------------
[______________________]*                    [_____________]*
--------------------------------------------------------------
[_________________________________]*         [_____________]*
--------------------------------------------------------------
[_________________________________]*         [_____________]*
--------------------------------------------------------------

                                      49

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  omitted and filed separately with the Commission.

<PAGE>

[______]* is also assessed by measuring [___________]* by determining
[______________]* and [_________________________________________________]*.


                           [________________]*


[____]* are [____]* on [_____]* under [________]* conditions for [________]*,
[__________]* by placing [___________]* or [_________]* for [__________]*, and
returned to [____________]* conditions for [__________]* additional [ ]*.
[____________]* is assessed as described above. Additional measurements listed
in the [________________________________________]* can be performed as decided
by the PROJECT COMMITTEE.

                     [______________________]* LIMITATION:

[___________]* are [________________]* and [___________]* for [___________]*
on defined [___________]*. [______________________]* is assessed by measuring
the following [______________________]* and [______________________]*:

<TABLE>
<S>                                             <C>
[______________________]*                       [___________]*
-----------------------------------------------------------------------------------------------
[______________________]*                       [____________________]*
-----------------------------------------------------------------------------------------------
[____________________________]*                 [___________]*
-----------------------------------------------------------------------------------------------
[____________________________]*                 [___________]*
-----------------------------------------------------------------------------------------------
[____________________________]*                 [___________]*
-----------------------------------------------------------------------------------------------
[______________________]*                       [___________]*
-----------------------------------------------------------------------------------------------
[____________________________]*                 [___________]*
-----------------------------------------------------------------------------------------------
[____________________________]*                 [___________]*
-----------------------------------------------------------------------------------------------
</TABLE>

Additional measurements listed in the [_____________]* and
[_____________________]* can be performed as decided by the PROJECT COMMITTEE.

                     [___________________________________]*

[_____]* will be [__________]* on defined [___________]* containing specified
amounts of [______________________]* and [_____________________]* will be noted.

                           DATA FORMAT AND TRANSFER:

Data are collected and transferred to MONSANTO in the form of computer files.
Data are summarized and transferred on a monthly basis.

PARADIGM Genetics will supply a [______]* with [____________]* quality control
applied to the data but no [__________________]*.  [__________]* identification
and study identification tags will be supplied with the data in a standard
agreed upon format that allows for the [___________________________________]*.
All data will be transmitted by standard protocols such as [__________]* using
an agreed upon security protocol and on a regular schedule.

During the [______________]* of the collaboration, the PROJECT TEAM will define
and mutually agree upon the following elements of the PARADIGM Genetics -
MONSANTO data exchange:

 1)  [________________________]*
 2)  [________________________]*
 3)  [_________________________________]*
 4)  [_____________________________]*
 5)  [_____________________]*


                                      50

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
                                  Appendix C
--------------------------------------------------------------------------------
                                   Project Plan

                                Production Target

                                     Levels
--------------------------------------------------------------------------------
            Production

            Target Levels per

            Quarter
--------------------------------------------------------------------------------
            Constructs            Plant Trans       Pheno Anal     Full Anal
--------------------------------------------------------------------------------
Q1                [__]*
--------------------------------------------------------------------------------
Q2                [__]*                [__]*
--------------------------------------------------------------------------------
Q3                [__]*                [__]*
--------------------------------------------------------------------------------
Q4                [__]*                [__]*             [__]*
--------------------------------------------------------------------------------
Q5                [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------
Q6                [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------
Q7                [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------
Q8                [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------
Q9                [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------
Q10               [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------
Q11               [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------
Q12               [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------
Q13               [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------
Q14               [__]*                [__]*             [__]*            [__]*
--------------------------------------------------------------------------------

                                       51

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.


<PAGE>

Q15                [__]*                [__]*           [__]*            [__]*
-----------------------------------------------------------------------------
Q16                [__]*                [__]*           [__]*            [__]*
-----------------------------------------------------------------------------
Q17                [__]*                [__]*           [__]*            [__]*
-----------------------------------------------------------------------------
Q18                [__]*                [__]*           [__]*            [__]*
-----------------------------------------------------------------------------
Q19                [__]*                [__]*           [__]*            [__]*
-----------------------------------------------------------------------------
Q20                [__]*                [__]*           [__]*            [__]*
-----------------------------------------------------------------------------
Q21                [__]*                [__]*           [__]*            [__]*
-----------------------------------------------------------------------------
Q22                                     [__]*           [__]*            [__]*
-----------------------------------------------------------------------------
Q23                                                     [__]*            [__]*
-----------------------------------------------------------------------------
Q24                                                     [__]*            [__]*
-----------------------------------------------------------------------------

Total           [____]*              [____]*         [____]*             [____]*
-----------------------------------------------------------------------------
            BOLD NUMBERS =

            PRODUCTION

            TARGET LEVELS

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

                                       52

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.


<PAGE>

--------------------------------------------------------------------------------
Appendix D:                    Appendix D
--------------------------------------------------------------------------------
                               Quarterly            Production Target Level
--------------------------------------------------------------------------------
                               Payments                      Payments
--------------------------------------------------------------------------------
Year 1
--------------------------------------------------------------------------------
Q1                          [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q2                          [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q3                          [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q4                          [__________]*                   [__________]*
--------------------------------------------------------------------------------
Year 2
--------------------------------------------------------------------------------
Q5                          [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q6                          [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q7                          [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q8                          [__________]*                   [__________]*
--------------------------------------------------------------------------------
Year 3
--------------------------------------------------------------------------------
Q9                          [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q10                         [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q11                         [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q12                         [__________]*                   [__________]*
--------------------------------------------------------------------------------
Year 4
--------------------------------------------------------------------------------
Q13                         [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q14                         [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q15                         [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q16                         [__________]*                   [__________]*
--------------------------------------------------------------------------------

                                       53

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* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
Year 5
--------------------------------------------------------------------------------
Q17                         [__________]*                          [__________]*
--------------------------------------------------------------------------------
Q18                         [__________]*                          [__________]*
--------------------------------------------------------------------------------
Q19                         [__________]*                          [__________]*
--------------------------------------------------------------------------------
Q20                         [__________]*                          [__________]*
--------------------------------------------------------------------------------
Year 6
--------------------------------------------------------------------------------
Q21                         [__________]*                          [__________]*
--------------------------------------------------------------------------------
Q22                         [__________]*                          [__________]*
--------------------------------------------------------------------------------
Q23                         [__________]*                          [__________]*
--------------------------------------------------------------------------------
Q24                         [__________]*                          [__________]*
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
TOTAL                      $31,500,000.00                        $13,500,000.00
--------------------------------------------------------------------------------

                                       54

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
                                  Appendix E
--------------------------------------------------------------------------------
                                  Rice Option

                               Production Target

                                    Levels
--------------------------------------------------------------------------------
         Production

         Target Levels per

         Quarter
--------------------------------------------------------------------------------
           Clone/Seq              Plant Trans        Pheno Anal      Full Anal
--------------------------------------------------------------------------------
Q1            [__]*
--------------------------------------------------------------------------------
Q2            [__]*
--------------------------------------------------------------------------------
Q3            [__]*
--------------------------------------------------------------------------------
Q4            [__]*                     [__]*
--------------------------------------------------------------------------------
Q5            [__]*                     [__]*
--------------------------------------------------------------------------------
Q6            [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q7            [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q8            [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q9            [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q10           [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q11           [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q12           [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q13           [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q14           [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q11           [__]*                     [__]*              [__]*           [__]*
--------------------------------------------------------------------------------

                                       55


--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
Q16                      [__]*           [__]*            [__]*            [__]*
--------------------------------------------------------------------------------
Q17                                      [__]*            [__]*            [__]*
--------------------------------------------------------------------------------
Q18                                      [__]*            [__]*            [__]*
--------------------------------------------------------------------------------
Q19                                                       [__]*            [__]*
--------------------------------------------------------------------------------
Q20                                                       [__]*            [__]*
--------------------------------------------------------------------------------


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

Total                  [____]*          [____]*          [____]*         [____]*
--------------------------------------------------------------------------------

            BOLD NUMBERS =

            PRODUCTION

            TARGET LEVELS
--------------------------------------------------------------------------------
            QUARTERS = RICE OPTION

            QUARTERS (NOT

            PROJECT

            QUARTERS)
--------------------------------------------------------------------------------

                                       56

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
                                  Appendix F

                                  RICE OPTION
--------------------------------------------------------------------------------

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

                                   Quarterly           Production Target Level
--------------------------------------------------------------------------------
                                    Payments                   Payments
--------------------------------------------------------------------------------
Year 1
--------------------------------------------------------------------------------
Up front access fees               [__________]*
--------------------------------------------------------------------------------
Q1                                 [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q2                                 [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q3                                 [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q4                                 [__________]*                   [__________]*
--------------------------------------------------------------------------------
Year 2
--------------------------------------------------------------------------------
Q5                                 [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q6                                 [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q7                                 [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q8                                 [__________]*                   [__________]*
--------------------------------------------------------------------------------
Year 3
--------------------------------------------------------------------------------
Q9                                 [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q10                                [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q11                                [__________]*                   [__________]*
--------------------------------------------------------------------------------
Q12                                [__________]*                   [__________]*
--------------------------------------------------------------------------------
Year 4
--------------------------------------------------------------------------------
Q13                                [__________]*                   [__________]*
--------------------------------------------------------------------------------

                                       57

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
Q14                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Q15                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Q16                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Year 5
--------------------------------------------------------------------------------
Q17                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Q18                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Q19                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Q20                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Year 6
--------------------------------------------------------------------------------
Q21                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Q22                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Q23                        [__________]*                         [__________]*
--------------------------------------------------------------------------------
Q24                        [__________]*                         [__________]*
--------------------------------------------------------------------------------

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

TOTAL                     $13,880,000.00                        $5,120,000.00
--------------------------------------------------------------------------------

                                       58

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
                                  Appendix G
--------------------------------------------------------------------------------
                                  Increase in

                              Arabidopsis Option

                               Production Target

                                    Levels
--------------------------------------------------------------------------------
        Production

        Target Levels per

        Qtr
--------------------------------------------------------------------------------
          Clone/Seq                 Plant Trans      Pheno Anal     Full Anal
--------------------------------------------------------------------------------
Q1             [__]*
--------------------------------------------------------------------------------
Q2             [__]*                       [__]*
--------------------------------------------------------------------------------
Q3             [__]*                       [__]*
--------------------------------------------------------------------------------
Q4             [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q5             [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q6             [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q7             [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q8             [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q9             [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q10            [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q11            [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q12            [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q13            [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------
Q14            [__]*                       [__]*           [__]*          [__]*
--------------------------------------------------------------------------------

                                       59
--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
Q15                [__]*               [__]*              [__]*            [__]*
--------------------------------------------------------------------------------
Q16                [__]*               [__]*              [__]*            [__]*
--------------------------------------------------------------------------------
Q17                [__]*               [__]*              [__]*            [__]*
--------------------------------------------------------------------------------
Q18                [__]*               [__]*              [__]*            [__]*
--------------------------------------------------------------------------------
Q19                [__]*               [__]*
--------------------------------------------------------------------------------
Q20                                                       [__]*            [__]*
--------------------------------------------------------------------------------
Total           [_____]*            [_____]*           [_____]*         [_____]*
--------------------------------------------------------------------------------
            BOLD
            NUMBERS =
            PRODUCTION
            TARGET
            LEVELS
--------------------------------------------------------------------------------
            QUARTERS =
            OPTION
            QUARTERS
            (NOT PROJECT
            QUARTERS)
--------------------------------------------------------------------------------

                                       60

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
                                  Appendix H
--------------------------------------------------------------------------------
                            Increase in Arabidopsis

                                    Option
--------------------------------------------------------------------------------

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

                                    Quarterly         Production Target Level
--------------------------------------------------------------------------------
                                    Payments                 Payments
--------------------------------------------------------------------------------
Year 1
--------------------------------------------------------------------------------
Up-front access fees                [__________]*
--------------------------------------------------------------------------------
Q1                                  [__________]*                  [__________]*
--------------------------------------------------------------------------------
Q2                                  [__________]*                  [__________]*
--------------------------------------------------------------------------------
Q3                                  [__________]*                  [__________]*
--------------------------------------------------------------------------------
Q4                                  [__________]*                  [__________]*
--------------------------------------------------------------------------------
Year 2
--------------------------------------------------------------------------------
Q5                                  [__________]*                  [__________]*
--------------------------------------------------------------------------------
Q6                                  [__________]*                  [__________]*
--------------------------------------------------------------------------------
Q7                                  [__________]*                  [__________]*
--------------------------------------------------------------------------------
Q8                                  [__________]*                  [__________]*
--------------------------------------------------------------------------------
Year 3
--------------------------------------------------------------------------------
Q9                                  [__________]*                  [__________]*
--------------------------------------------------------------------------------
Q10                                 [__________]*                  [__________]*
--------------------------------------------------------------------------------
Q11                                 [__________]*                  [__________]*
--------------------------------------------------------------------------------
Q12                                 [__________]*                  [__________]*
--------------------------------------------------------------------------------
Year 4
--------------------------------------------------------------------------------

                                       61

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
Q13                       [__________]*                          [__________]*
--------------------------------------------------------------------------------
Q14                       [__________]*                          [__________]*
--------------------------------------------------------------------------------
Q15                       [__________]*                          [__________]*
--------------------------------------------------------------------------------
Q16                       [__________]*                          [__________]*
--------------------------------------------------------------------------------

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

TOTAL                     $46,760,000.00                        $21,240,000.00
--------------------------------------------------------------------------------

                                       62

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.
<PAGE>

--------------------------------------------------------------------------------
                                  Appendix I
--------------------------------------------------------------------------------
                                  Increase in

                              Arabidopsis with 8

                                   Year Term
--------------------------------------------------------------------------------
        Production Target
        Levels per Qtr
--------------------------------------------------------------------------------
              Clone/Seq            Plant Trans         Pheno Anal    Full Anal
--------------------------------------------------------------------------------
Q1                 [__]*
--------------------------------------------------------------------------------
Q2                 [__]*                 [__]*
--------------------------------------------------------------------------------
Q3                 [__]*                 [__]*
--------------------------------------------------------------------------------
Q4                 [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q5                 [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q6                 [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q7                 [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q8                 [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q9                 [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q10                [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
all                [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q12                [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q13                [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q14                [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q15                [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------
Q16                [__]*                 [__]*               [__]*         [__]*
--------------------------------------------------------------------------------

                                       63


--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
Q17                   [__]*             [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q18                   [__]*             [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q19                   [__]*             [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q20                   [__]*             [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q21                   [__]*             [__]*              [__]*           [__]*
--------------------------------------------------------------------------------
Q22                                                        [__]*           [__]*
--------------------------------------------------------------------------------
Q23                                                        [__]*           [__]*
--------------------------------------------------------------------------------
Q24                                                                        [__]*
--------------------------------------------------------------------------------

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

Total              [_____]*          [_____]*           [_____]*        [_____]*
--------------------------------------------------------------------------------

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

          BOLD NUMBERS =

          PRODUCTION
          TARGET

          LEVELS
--------------------------------------------------------------------------------
          QUARTERS =
          OPTION


          QUARTERS (NOT

          PROJECT
          QUARTERS)
--------------------------------------------------------------------------------

                                       64

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

--------------------------------------------------------------------------------
                                  Appendix J
--------------------------------------------------------------------------------
                            Increase in Arabidopsis

                            with 8 Year Term Option
--------------------------------------------------------------------------------

                                   Quarterly          Production Target Level
--------------------------------------------------------------------------------
                                   Payments                   Payments
--------------------------------------------------------------------------------
Year 1
--------------------------------------------------------------------------------
Up-front access fees               [____________]*
--------------------------------------------------------------------------------
Q1                                 [____________]*               [____________]*
--------------------------------------------------------------------------------
Q2                                 [____________]*               [____________]*
--------------------------------------------------------------------------------
Q3                                 [____________]*               [____________]*
--------------------------------------------------------------------------------
Q4                                 [____________]*               [____________]*
--------------------------------------------------------------------------------
Year 2
--------------------------------------------------------------------------------
Q5                                 [____________]*               [____________]*
--------------------------------------------------------------------------------
Q6                                 [____________]*               [____________]*
--------------------------------------------------------------------------------
Q7                                 [____________]*               [____________]*
--------------------------------------------------------------------------------
Q8                                 [____________]*               [____________]*
--------------------------------------------------------------------------------
Year 3
--------------------------------------------------------------------------------
Q9                                 [____________]*               [____________]*
--------------------------------------------------------------------------------
Q10                                [____________]*               [____________]*
--------------------------------------------------------------------------------
Q11                                [____________]*               [____________]*
--------------------------------------------------------------------------------
Q12                                [____________]*               [____________]*
--------------------------------------------------------------------------------
Year 4
--------------------------------------------------------------------------------
Q13                                [____________]*               [____________]*
--------------------------------------------------------------------------------

                                       65

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.
<PAGE>

--------------------------------------------------------------------------------
Q14                                [____________]*              [____________]*
--------------------------------------------------------------------------------
Q15                                [____________]*              [____________]*
--------------------------------------------------------------------------------
Q16                                [____________]*              [____________]*
--------------------------------------------------------------------------------
Year 5
--------------------------------------------------------------------------------
Q17                                [____________]*              [____________]*
--------------------------------------------------------------------------------
Q18                                [____________]*              [____________]*
--------------------------------------------------------------------------------
Q19                                [____________]*              [____________]*
--------------------------------------------------------------------------------
Q20                                [____________]*              [____________]*
--------------------------------------------------------------------------------
Year 6                                                          [____________]*
--------------------------------------------------------------------------------
Q21                                [____________]*
--------------------------------------------------------------------------------
Q22                                [____________]*              [____________]*
--------------------------------------------------------------------------------
Q23                                [____________]*              [____________]*
--------------------------------------------------------------------------------
Q24                                [____________]*              [____________]*
--------------------------------------------------------------------------------

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

TOTAL                             $51,040,000.00               $23,960,000.00
--------------------------------------------------------------------------------

                                       66

--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.

<PAGE>

                                  Appendix K


                        Monsanto Enabling Technologies



Monsanto Enabling Technologies

[_____________________________]*

[_____________________________]*

[_____________________________]*

[_____________________________]*

[_____________________________]*

                                       67


--------
* Confidential treatment requested as to certain portions, which portions are
  omitted and filed separately with the Commission.