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                                                                    EXHIBIT 10.1

                     MONSANTO 2000 MANAGEMENT INCENTIVE PLAN

1. PURPOSES

The Monsanto 2000 Management Incentive Plan is designed to:

     o    focus management on business performance that creates stockholder
          value;

     o    encourage innovative approaches to the business of the Company;

     o    reward for results;

     o    encourage ownership of Monsanto common stock by management; and

     o    encourage taking higher risks with an opportunity for higher reward.

2.  DEFINITIONS

2.1.  "1933 Act" shall have the meaning set forth in Section 12.14(a).

2.2.  "Adjustment Notice" shall have the meaning set forth in Section 6.2.

2.3.  "Affiliate" means (i) any entity that is an Associated Company of the
Company or a Subsidiary of the Company, and (ii) at a time when Pharmacia
beneficially owns a majority of the then-outstanding shares, Pharmacia and any
entity that is an Associated Company of Pharmacia or a Subsidiary of Pharmacia.

2.4.  "Associated Company" of the Company or Pharmacia means any corporation,
partnership, joint venture, limited liability company, or other entity or
enterprise, of which the Company or Pharmacia, as applicable, owns or controls,
directly or indirectly, 10% or more of the outstanding shares of stock normally
entitled to vote for the election of directors, or of comparable equity
participation and voting power, other than a Subsidiary of the Company or
Pharmacia, as applicable.

2.5.  "Award" means any Option, Stock Appreciation Right, Restricted Share,
unrestricted Share, dividend equivalent unit or other award granted under this
Incentive Plan.

2.6.  "Award Certificate" means a written document, in such form as the
Committee may from time to time prescribe, setting forth the terms and
conditions of an Award.

2.7.  "Board" means the board of directors of the Company.

2.8.  "Board People Committee" means the People Committee of the Board or such
other committee consisting of two or more members of the Board as may be
appointed by the Board to administer this Incentive Plan pursuant to Section
4.1.

2.9.  "Change of Control" means a Monsanto Change of Control or a Pharmacia
Change of Control.

2.10.  "Code" means the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder.
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2.11.  "Committee" means the Board People Committee, or its permitted delegate.

2.12.  "Company" means Monsanto Company, a Delaware corporation incorporated
February 9, 2000 (originally under the name Monsanto Ag Company), and any
successors thereto.

2.13.  "Covered Employee" means a Participant designated prior to or at the time
of the grant of an Award by the Committee as an individual who is or may be a
"covered employee" of the Company within the meaning of Section 162(m)(3) of the
Code, in the year in which the Company is expected to be entitled to a federal
income tax deduction with respect to the Award.

2.14.  "Director Plan" means the Monsanto Company Non-Employee Director Equity
Incentive Compensation Plan.

2.15.  "Disability" means a physical or mental disability that causes a
Participant to be considered disabled under the terms of the disability income
plan applicable to such Participant, whether or not such Participant actually
receives such disability benefits, or, in the event that there is no disability
income plan applicable to such Participant, as determined by the Committee.

2.16.  "Effective Date" has the meaning set forth in Section 3.

2.17.  "Eligible Participant" means any member of the Board and any employee of
the Company or an Affiliate.

2.18.  "Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, and any successor thereto.

2.19.  "Exercise Price" means the price at which a Participant may purchase a
Share covered by an Option, or the price with respect to which the Stock
Appreciation Right Fair Market Value of a Stock Appreciation Right is
determined, as applicable.

2.20.  "Fair Market Value" means, with respect to any given date on or before
the date of the initial public offering of the Shares, the fair market value of
a Share as determined by the Committee, and with respect to any given date after
the date of the initial public offering of the Shares, the average of the
highest and lowest per-share sales prices for the Shares during normal business
hours on the New York Stock Exchange for the immediately preceding date, or if
the Shares were not traded on the New York Stock Exchange on such date, then on
the next preceding date on which the Shares were traded, all as reported by such
source as the Committee may select.

2.21.  "Grant Date" means the date as of which the Committee determines that a
grant of an Award shall be effective.

2.22.  "Incentive Option" means an Option that is designated as an Incentive
Option and that meets the requirements of Section 422 of the Code for "incentive
stock options."

2.23.  "Incentive Plan" means the Monsanto 2000 Management Incentive Plan set
forth herein.

2.24.  "Monsanto Change of Control" means the happening of any of the events
described in subsections (a) through (d) below, if immediately following such
event, Pharmacia does not beneficially own a majority of the then-outstanding
Shares:

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(a)  the acquisition by any Person of beneficial ownership (within the meaning
     of Rule 13d-3 promulgated under the Exchange Act) of either (i) the
     Requisite Common Percentage (as defined herein) of the then-outstanding
     shares of common stock of the Company (the "Outstanding Company Common
     Stock") or (ii) the Requisite Voting Percentage (as defined herein) of the
     combined voting power of the then-outstanding voting securities of the
     Company entitled to vote generally in the election of directors (the
     "Outstanding Company Voting Securities"); provided, that for purposes of
     this subsection (a), the following acquisitions shall not constitute a
     Change of Control:  (A) any acquisition directly from the Company; (B) any
     acquisition by the Company or a Subsidiary of the Company; (C) any
     acquisition by any employee benefit plan (or related trust) sponsored or
     maintained by the Company or a Subsidiary of the Company; or (D) any
     acquisition by any corporation pursuant to a transaction that complies with
     clauses (i), (ii) and (iii) of subsection (c) of this definition;

(b)  individuals who, as of the date of the initial public offering of the
     common stock of the Company, constitute the Board (the "Incumbent Board"),
     cease for any reason to constitute at least a majority of the Board;
     provided, that any individual becoming a director subsequent to the date
     hereof whose election, or nomination for election by the Company's
     stockholders, was approved by a vote of at least a majority of the
     directors then comprising the Incumbent Board shall be considered as though
     such individual were a member of the Incumbent Board, but excluding, for
     this purpose, any such individual whose initial assumption of office occurs
     as a result of an actual or threatened election contest with respect to the
     election or removal of directors or other actual or threatened solicitation
     of proxies or consents by or on behalf of a Person other than the Board;

(c)  consummation by the Company of a reorganization, merger or consolidation or
     sale or other disposition of all or substantially all of the assets of the
     Company or the acquisition of assets or stock of another corporation (a
     "Business Combination"), in each case, unless, following such Business
     Combination, (i) all or substantially all of the individuals and entities
     who were the beneficial owners, respectively, of the Outstanding Company
     Common Stock and Outstanding Company Voting Securities immediately prior to
     such Business Combination beneficially own, directly or indirectly, more
     than 60% of, respectively, the then-outstanding shares of common stock and
     the combined voting power of the then-outstanding voting securities
     entitled to vote generally in the election of directors, as the case may
     be, of the corporation resulting from such Business Combination (including
     without limitation a corporation that as a result of such transaction owns
     the Company or all or substantially all of the Company's assets either
     directly or through one or more subsidiaries) in substantially the same
     proportions as their ownership, immediately prior to such Business
     Combination of the Outstanding Company Common Stock and Outstanding Company
     Voting Securities, as the case may be, (ii) no Person (excluding the
     Company, a Subsidiary of the Company, any corporation resulting from a
     Business Combination or any employee benefit plan (or related trust)
     thereof) beneficially owns, directly or indirectly, the Requisite Common
     Percentage of the then-outstanding shares of common stock of the
     corporation resulting from such Business Combination or the Requisite
     Voting Percentage of the combined voting power of the then-outstanding
     voting securities entitled to vote generally in the election of directors
     of such corporation, except to the extent that such ownership existed prior
     to the Business Combination and (iii) at least a majority of the members of
     the board of directors of the corporation resulting from such Business
     Combination were members of the Incumbent Board at the time of the
     execution of the initial agreement, or of the action of the Board,
     providing for such Business Combination; or

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(d)  approval by the stockholders of the Company of a complete liquidation or
     dissolution of the Company.

2.25.  "Monsanto Leadership Team" means those individuals who are, immediately
before a Pharmacia Change of Control, members of the Monsanto Leadership Team or
any successor group thereto.

2.26.  "Non-Qualified Option" means an Option that is not intended to be treated
as an Incentive Option or an Option that does not meet the requirements of
Section 422 of the Code for "incentive stock options."

2.27.  "Option" means a right granted under this Incentive Plan to a Participant
to purchase a Share at a specified price for a specified period of time.

2.28.  "Participant" means an Eligible Participant to whom an Award has been
granted pursuant to this Incentive Plan; provided, that in the case of the death
or legal incapacity of a Participant, the term "Participant" shall refer to a
beneficiary designated pursuant to Section 10.4 or Section 12.1 or the guardian
or legal representative of the Participant acting in a fiduciary capacity on
behalf of such Participant under state law and court supervision or comparable
office and supervision under applicable foreign law.

2.29.  "Performance Objective" means a performance objective adopted by the
Committee pursuant to this Incentive Plan for Participants who have received
Awards.  If the Committee determines that a change in the business, operations,
corporate structure or capital structure of the Company, or the manner in which
it conducts its business, or other events or circumstances render the
Performance Objectives to be unsuitable, the Committee may modify such
Performance Objectives or the related minimum acceptable level of achievement,
in whole or in part, as the Committee deems appropriate.

2.30.  "Pharmacia" means Pharmacia Corporation, a Delaware corporation, and any
successor thereto.

2.31.  "Pharmacia Change of Control" means the happening of any of the events
described in subsections (a) through (d) below, if immediately following such
event, Pharmacia beneficially owns a majority of the then-outstanding Shares:

(a)  the acquisition by any individual, entity or group (within the meaning of
     Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of
     beneficial ownership (within the meaning of Rule 13d-3 promulgated under
     the Exchange Act) of 20 percent or more of either (i) the then-outstanding
     shares of common stock of Pharmacia (the "Outstanding Pharmacia Common
     Stock") or (ii) the combined voting power of the then-outstanding voting
     securities of Pharmacia entitled to vote generally in the election of
     directors (the "Outstanding Pharmacia Voting Securities"); provided, that
     for purposes of this subsection (a), the following acquisitions shall not
     constitute a Change of Control:  (A) any acquisition directly from
     Pharmacia; (B) any acquisition by the Company, Pharmacia, or a Subsidiary
     of either of them; (C) any acquisition by any employee benefit plan (or
     related trust) sponsored or maintained by the Company, Pharmacia, or a
     Subsidiary of either of them; or (D) any acquisition by any corporation
     pursuant to a transaction that complies with clauses (i), (ii) and (iii) of
     subsection (c) of this definition;

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(b)  individuals who, as of the date of the initial public offering of the
     Shares, constitute the Board of Directors of Pharmacia (the "Incumbent
     Pharmacia Board"), cease for any reason to constitute at least a majority
     of the Pharmacia Board; provided, that any individual becoming a director
     subsequent to the date hereof whose election, or nomination for election by
     Pharmacia's stockholders, was approved by a vote of at least a majority of
     the directors then comprising the Incumbent Pharmacia Board shall be
     considered as though such individual were a member of the Incumbent
     Pharmacia Board, but excluding, for this purpose, any such individual whose
     initial assumption of office occurs as a result of an actual or threatened
     election contest with respect to the election or removal of directors or
     other actual or threatened solicitation of proxies or consents by or on
     behalf of a Person other than the Board of Directors of Pharmacia;

(c)  consummation of a reorganization, merger or consolidation or sale or other
     disposition of all or substantially all of the assets of Pharmacia or the
     acquisition of assets or stock of another corporation (a "Pharmacia
     Business Combination"), in each case, unless, following such Pharmacia
     Business Combination, (i) all or substantially all of the individuals and
     entities who were the beneficial owners, respectively, of the Outstanding
     Pharmacia Common Stock and Outstanding Pharmacia Voting Securities
     immediately prior to such Pharmacia Business Combination beneficially own,
     directly or indirectly, more than 60% of, respectively, the then-
     outstanding shares of common stock and the combined voting power of the
     then-outstanding voting securities entitled to vote generally in the
     election of directors, as the case may be, of the corporation resulting
     from such Pharmacia Business Combination (including without limitation a
     corporation that as a result of such transaction owns Pharmacia or all or
     substantially all of Pharmacia's assets either directly or through one or
     more subsidiaries) in substantially the same proportions as their
     ownership, immediately prior to such Pharmacia Business Combination of the
     Outstanding Pharmacia Common Stock and Outstanding Pharmacia Voting
     Securities, as the case may be, (ii) no Person (excluding the Company,
     Pharmacia, a Subsidiary of either of them, any corporation resulting from
     such Pharmacia Business Combination or any employee benefit plan (or
     related trust) thereof) beneficially owns, directly or indirectly, 20% or
     more of, respectively, the then-outstanding shares of common stock of the
     corporation resulting from such Pharmacia Business Combination or the
     combined voting power of the then-outstanding voting securities of such
     corporation except to the extent that such ownership existed prior to the
     Pharmacia Business Combination and (iii) at least a majority of the members
     of the board of directors of the corporation resulting from such Pharmacia
     Business Combination were members of the Incumbent Pharmacia Board at the
     time of the execution of the initial agreement, or of the action of the
     Board of Directors of Pharmacia, providing for such Pharmacia Business
     Combination; or

(d)  approval by the stockholders of Pharmacia of a complete liquidation or
     dissolution of Pharmacia.

2.32.  "Qualified Performance-Based Award" means an Award designated as such by
the Committee at the time of grant, based upon a determination that (i) the
recipient is a Covered Employee and (ii) the Committee wishes such Award to
qualify for the Section 162(m) Exemption, and made subject to performance goals
satisfying the requirements for the Section 162(m) Exemption.

2.33.  "Reporting Person" means a person subject to the reporting requirements
of Section 16(a) of the Exchange Act with respect to Shares.

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2.34.  "Requisite Common Percentage" means, as of any given time, a percentage
equal to or greater than the higher of (i) 20 percent and (ii) the percentage of
the then-outstanding Shares then beneficially owned by Pharmacia.

2.35.  "Requisite Voting Percentage" means, as of any given time, a percentage
equal to or greater than the higher of (i) 20 percent and (ii) the percentage of
the voting power of the then-outstanding voting securities of the Company
entitled to vote generally in the election of directors then beneficially owned
by Pharmacia.

2.36.  "Restricted Shares" means Shares that are granted or delivered subject to
restrictions in accordance with Section 10.3.

2.37.  "Retirement" means a Participant's Termination of Service on or after the
date on which the Participant attains age 50.

2.38.  "Second Trigger" shall be considered to have occurred (i) with respect to
all Participants if, during the one-year period immediately following a
Pharmacia Change of Control, one of the following occurs:  (A) more than half of
the members of the Monsanto Leadership Team experience a Termination without
Cause or a Termination for Good Reason; (B) the headquarters of the Company is
relocated by more than 35 miles from its location immediately before the
Pharmacia Change of Control, or a plan to effect such a relocation is publicly
announced; (C) it is publicly announced that Pharmacia intends to take steps
that will result in its ceasing to beneficially own a majority of the then-
outstanding Shares or that would otherwise result in a Monsanto Change of
Control, and such steps have not previously been approved by a majority of the
members of the Monsanto Leadership Team; and (ii) with respect to a given
Participant if, during the period of one year immediately following a Pharmacia
Change of Control, or the Participant experiences a Termination without Cause,
or a Termination for Good Reason.

2.39.  "Section."  Unless otherwise indicated, all "Section" references are to
sections of this Incentive Plan.

2.40.  "Section 162(m) Exemption" means the exemption from the limitation on
deductibility imposed by Section 162(m) of the Code that is set forth in Section
162(m)(4)(C) of the Code.

2.41.  "Shares" means shares of Company common stock.  If there has been an
adjustment or substitution pursuant to Section 6, the term "Shares" shall also
include any shares of stock or other securities that are substituted for Shares
or into which the Shares are adjusted pursuant thereto.

2.42.  "Stock Appreciation Right" means a right described in Section 9.

2.43.  "Stock Appreciation Right Fair Market Value" means the excess of (i) the
Fair Market Value of a Share on the date of exercise of a Stock Appreciation
Right, over (ii) the Exercise Price of the Stock Appreciation Right.

2.44.  "Subsidiary" of the Company or Pharmacia means any corporation,
partnership, joint venture, limited liability company, or other entity or
enterprise of which the Company or Pharmacia, as applicable, owns or controls,
directly or indirectly, 50% or more of the outstanding shares of stock normally
entitled to vote for the election of directors, or of comparable equity
participation and voting power.

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2.45.  "Termination for Cause" of a Participant or any other individual means a
Termination of Service for "cause," "just cause," "misbehavior," or any similar
term, as defined in any unexpired employment agreement between the Participant
or other individual and the Company or an Affiliate, as the case may be
(including without limitation any employment agreement the effectiveness of
which has been triggered by a change of control as defined therein), or, in the
absence of such an agreement, or if such agreement exists but does not define
any such term, an involuntary Termination of Service of the Participant or other
individual on account of the Participant's or other individual's engaging in (i)
any willful or intentional neglect in performing his duties, including, but not
limited to, fraud, misappropriation or embezzlement involving property of the
Company or an Affiliate, or (ii) any other intentional wrongful act that may
impair the goodwill or business of the Company or an Affiliate, or that may
cause damage to any of their businesses.

2.46.  "Termination without Cause" of a Participant or any other individual
means a Termination of Service that is involuntary on the part of the
Participant or other individual, other than a Termination for Cause or as a
result of the Participant's death or Disability.

2.47.  "Termination for Good Reason" with respect to a Participant means the
Participant's Termination of Service for "good reason," "just cause," "material
breach by the employer" or any similar term, as defined in any unexpired
employment agreement between the Participant and the Company or an Affiliate, as
the case may be (including without limitation any employment agreement the
effectiveness of which has been triggered by a change of control as defined
therein), or, in the absence of such an agreement, or if such agreement exists
but does not define any such term, the Participant's Termination of Service by
action of the Participant following:  (i) any change affecting the position of
the Participant (whether resulting from a transfer of the Participant to another
position, a change in the Company's business, or any other event) such that the
Participant no longer has a position substantially equivalent to the
Participant's position immediately before the Pharmacia Change of Control for
which the Participant is qualified by education, training and experience; (ii) a
decrease in the Participant's salary; (iii) a material decrease in the
Participant's opportunity to earn annual and long-term incentive compensation as
compared to the opportunities provided to the Participant before the Pharmacia
Change of Control; (iv) a material decrease in the aggregate value of the
Participant's employee benefits and fringe benefits as compared to those
provided to the Participant before the Pharmacia Change of Control; or (v) a
requirement that the Participant relocate his or her place of employment by more
than 35 miles.

2.48.  "Termination of Service" of a Participant or any other individual occurs
when the Participant or other individual is no longer either an employee of the
Company or any of the Affiliates (including without limitation because the
entity that employs the Participant or other individual has ceased to be an
Affiliate), or a member of the Board.

3.  EFFECTIVE DATE OF THIS INCENTIVE PLAN

The effective date (the "Effective Date") of this Incentive Plan is ___________,
2000, the first date as of which this Incentive Plan had been both adopted by
the Board and approved by Pharmacia as the Company's sole stockholder.

4.  ADMINISTRATION

4.1.  Delegation.  This Incentive Plan shall be administered by the Board People
Committee except to the extent the Board People Committee delegates
administration pursuant to this

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paragraph. The Board People Committee may delegate all or a portion of the
administration of this Incentive Plan to one or more committees, and may
authorize further delegation by the committees to senior managers of the
Company, its Subsidiaries, or Pharmacia; provided, that determinations regarding
the timing, pricing, amount and terms of any Award to a Reporting Person shall
be made only by the Board People Committee; and provided, further, that no such
delegation may be made that would cause Awards or other transactions under this
Incentive Plan to cease to be exempt from Section 16(b) of the Exchange Act or
cause an Award designated as a Qualified Performance-Based Award not to qualify
for, or to cease to qualify for, the Section 162(m) Exemption; and provided,
finally, that no delegation may be made of the powers granted to the Board
People Committee under Section 12.16. Any such delegation may be revoked by the
Committee at any time.

4.2.  Scope of Authority.  The Committee shall have full power and authority to
administer and interpret this Incentive Plan and to adopt such rules,
regulations, agreements, guidelines and instruments for the administration of
this Incentive Plan as the Committee deems necessary or advisable.  The
Committee's powers include, but are not limited to (subject to the specific
limitations described herein), the authority to determine the employees to be
granted Awards under this Incentive Plan; to determine the size and applicable
terms and conditions of grants to be made to such employees; to determine the
time when Awards will be granted; to determine the terms and conditions of any
grant, including, without limitation, the Exercise Price, any vesting condition,
restriction or limitation (which may contain Performance Objectives relating to
the performance of the Participant, the Company or an Affiliate) and any
acceleration of vesting or waiver of forfeiture regarding any grant and the
Shares relating thereto; to determine whether a resignation was voluntary and
whether a Termination of Service was a Termination for Cause; and to modify,
amend or adjust the terms and conditions of any grant made to a Participant, at
any time, provided, that the Committee may not reduce the Exercise Price of, or
cancel and regrant, any outstanding Option or Stock Appreciation Right.

4.3.  Actions and Interpretations.  The Committee's interpretations of this
Incentive Plan and of Award Certificates, and all actions taken and
determinations made by the Committee concerning any matter arising under or with
respect to this Incentive Plan or any Awards granted hereunder, shall be in its
sole discretion and final, binding and conclusive on all interested parties,
including the Company, an Affiliate, stockholders of any of those entities, and
all former, present and future employees thereof.  The Committee may, with
respect to all questions of accounting, rely conclusively upon any determination
made by the internal accountants of the Company.

4.4.  Board Authority.  Any authority granted to the Committee may also be
exercised by the Board, except to the extent that the grant or exercise of such
authority would cause any Qualified Performance-Based Award to cease to qualify
for the Section 162(m) Exemption.  To the extent that any permitted action taken
by the Board conflicts with action taken by the Committee, the Board action
shall control.

4.5.  Award Certificates.  Each Award shall be evidenced by an Award
Certificate.

5.  SHARES AUTHORIZED

5.1.  Total Number.  The total number of Shares that may be delivered pursuant
to Awards under this Incentive Plan shall not exceed the number of Shares that
equals 8.9% of the outstanding Shares immediately after the initial public
offering of the Shares.  Awards of Options, Restricted Stock and Deferred Stock
under the Director Plan shall automatically be granted under this Incentive Plan
as and when provided for in the Director Plan.

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5.2.  Individual Limit.  The total number of Shares for which Awards may be
granted under this Incentive Plan to any one Eligible Participant shall not
exceed, in any three-year period, 15% of the total number of Shares for which
Awards may be made under this Incentive Plan.

5.3.  Source of Shares.  The Shares that may be delivered pursuant to Awards
granted under this Incentive Plan may be authorized but unissued Shares not
reserved for any other purposes or Shares held in or acquired for the treasury
of the Company, or both.

5.4.  Forfeitures, Etc.  If any Award is forfeited, any Option (and the related
Stock Appreciation Right, if any) or any Stock Appreciation Right not related to
an Option terminates, expires or lapses without being exercised, or any Stock
Appreciation Right is exercised for cash, the Shares subject to such Awards that
are, as a result, not delivered to the Participant shall again be available for
delivery in connection with Awards.  If the Exercise Price of any Option is
satisfied by delivering Shares to the Company (by either actual delivery or by
attestation), only the number of Shares issued net of the Shares delivered or
attested to shall be deemed delivered for purposes of determining the maximum
number of Shares available for delivery pursuant to Awards other than Incentive
Options under this Incentive Plan.  To the extent any Shares subject to an Award
are not delivered to a Participant because such Shares are used to satisfy an
applicable tax withholding obligation, such Shares shall not be deemed to have
been delivered for purposes of determining the maximum number of Shares
available for delivery under this Incentive Plan.

6.  SHARE ADJUSTMENTS

6.1.  Adjustments.  In the event of any change in corporate capitalization such
as a stock split, any corporate transaction such as a merger, consolidation,
separation, spin-off, or other distribution of stock or property of the Company,
any reorganization (whether or not such reorganization comes within the
definition of reorganization in Section 368 of the Code), or any partial or
complete liquidation of the Company, then notwithstanding any other provision of
this Incentive Plan, the Committee or Board may make such substitution or
adjustments in the aggregate number and kind of shares reserved for delivery
pursuant to Awards under this Incentive Plan, in the limitations set forth in
Section 5, in the number and kind of shares subject to outstanding Awards, in
the Exercise Price of outstanding Options and Stock Appreciation Rights, and/or
such other equitable substitution or adjustments as it may determine to be
appropriate; provided, that the number of shares subject to any Award shall
always be a whole number and that no adjustment will be permissible hereunder to
the extent it would cause any Qualified Performance-Based Award to fail to
qualify for the Section 162(m) Exemption.

6.2.  Adjustment Notices.  Notice of any adjustment or substitution pursuant to
this Section 6 (the "Adjustment Notice") shall be given by the Company to each
Participant holding an affected Award; provided, that such adjustment or
substitution shall be effective and binding for all purposes of this Incentive
Plan whether or not an Adjustment Notice is given.  An Adjustment Notice may be
given by making it generally available to Participants via a newsletter or other
written employee communication, whether such communication is made available on
paper or electronically.  Adjustment Notices, when given, shall be considered to
be part of the Award Certificate for each affected Award.

7.  AWARDS OF OPTIONS AND STOCK APPRECIATION RIGHTS

7.1.  Grants.  Options and Stock Appreciation Rights may be granted at such time
or times determined by the Committee following the Effective Date to any
Eligible Participant, except that Incentive Options may not be granted to
Eligible Participants who are not employees of a parent or

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subsidiary corporation, as defined in Sections 424(e) and (f), respectively, of
the Code, with respect to the Company. Each Option and each Stock Appreciation
Right shall be granted subject to such terms and conditions, if any, not
inconsistent with this Incentive Plan, as shall be determined by the Committee
and set forth in the applicable Award Certificate, including any provisions as
to continued employment or continued service as consideration for the grant or
exercise of such Option or Stock Appreciation Right, provisions as to
performance conditions, and any provisions that may be advisable to comply with
applicable laws, regulations or the rulings of any governmental authority.

7.2.  Consideration.  The Committee may offer Eligible Participants the
opportunity to elect to receive an Option or Stock Appreciation Right in lieu of
a salary increase or a bonus, or may offer Eligible Participants the opportunity
to purchase Options or Stock Appreciation Rights for cash or such other
consideration as the Committee determines.

7.3.  Exercise of Options or Stock Appreciation Rights.  An Option or Stock
Appreciation Right, or portion thereof, may be exercised during the period
beginning on the date when it first becomes exercisable in accordance with its
terms, and ending upon the expiration of its term or, if sooner, when it is
forfeited as a result of a Termination of Service or otherwise in accordance
with the terms and conditions of the Option or Stock Appreciation Right.  The
term of an Option or Stock Appreciation Right shall expire on such date, not
later than the tenth anniversary of the Grant Date, as set forth in the
applicable Award Certificate.  The exercise of all or a portion of a Stock
Appreciation Right granted with a related Option shall result in the forfeiture
of all or a corresponding portion of the related Option and vice versa.  To
exercise an Option or Stock Appreciation Right, a Participant shall give notice
to the Company or its agent, specifying the number of Shares with respect to
which the Option or Stock Appreciation Right is being exercised, and otherwise
complying with such procedures as the Committee may from time to time establish.

7.4.  Effect of Termination of Service.  Unless otherwise set forth in the
applicable Award Certificate, the effect of a Participant's Termination of
Service on any Option or Stock Appreciation Right then held by the Participant,
to the extent it has not previously expired or been exercised, shall be as
follows:

(a)  Before Vesting has Commenced.  If such Termination of Service occurs before
     any portion of the Option or Stock Appreciation Right has become
     exercisable, the Participant shall forfeit such Option or Stock
     Appreciation Right;

(b)  After Vesting has Commenced.  If such Termination of Service occurs after
     the Option or Stock Appreciation Right has become exercisable in whole or
     in part:

     (i)  Voluntary Resignation. As a result of the Participant's voluntary
          resignation, such Option or Stock Appreciation Right shall be
          exercisable for a period of 90 days following such Termination of
          Service, to the extent it is exercisable immediately before such
          Termination of Service, and shall then be forfeited to the extent not
          exercised;

     (ii) Termination for Cause. In a Termination for Cause, the Participant
          shall forfeit such Option or Stock Appreciation Right;

     (iii) Retirement. By reason of the Participant's Retirement, such Option or
          Stock Appreciation Right shall be exercisable for a period of five
          years following such

                                      -10-
<PAGE>

          Termination of Service, to the extent it is exercisable immediately
          before such Termination of Service, and shall then be forfeited to the
          extent not exercised; and

     (iv) Other Involuntary Termination. In the case of any other Termination of
          Service (including by reason of death or Disability), such Option or
          Stock Appreciation Right shall be exercisable for a period of one year
          following such Termination of Service, to the extent it is exercisable
          immediately before such Termination of Service, and shall then be
          forfeited to the extent not exercised.

(c)  Limitation.  Notwithstanding the foregoing, in no event shall an Option or
     Stock Appreciation Right be exercisable after the expiration of its term.

7.5.  No Obligation to Exercise Option or Stock Appreciation Right.  The
granting of an Option or Stock Appreciation Right shall impose no obligation
upon the Participant or upon a beneficiary of a Participant to exercise such
Option or Stock Appreciation Right.

8.  OPTIONS

8.1.  Exercise Price.  The per-Share Exercise Price of an Option shall be
established by the Committee in connection with the grant thereof, but shall not
be less than 100% of the Fair Market Value of a Share on the Grant Date.  No
exercise of an Option shall be effective before payment of the Exercise Price
therefor.

8.2.  Method of Payment.  The Exercise Price for Shares purchased upon exercise
of an Option shall be paid upon such terms as shall be set forth in the
applicable Award Certificate.  Without limiting the foregoing, the Committee may
establish payment terms for the exercise of Options that permit the Participant
to deliver Shares (or other evidence of ownership of Shares satisfactory to the
Company), including, at the Committee's option, Restricted Shares, with a Fair
Market Value equal to the Exercise Price as payment; provided, that any such
Shares have been owned by the Participant for at least six months free of any
restrictions and without being subject to forfeiture.  The payment terms for an
Incentive Option must be established in connection with the grant thereof.

9.  STOCK APPRECIATION RIGHTS

9.1.  Nature of Right.  A Stock Appreciation Right shall entitle its holder to
receive, upon exercise, a payment in cash or Shares having an aggregate value
equal to the Stock Appreciation Right Fair Market Value.  A Stock Appreciation
Right may be granted either (i) with a related Option at the time the Option is
originally granted or, in the case of a Non-Qualified Option, thereafter, or
(ii) without a related Option.

9.2.  Exercise Price.  The Exercise Price per Share of a Stock Appreciation
Right that has a related Option shall equal the Exercise Price per Share of the
related Option.  The Exercise Price per Share of a Stock Appreciation Right that
does not have a related Option shall be established in connection with the grant
thereof, but shall not be less than 100% of the Fair Market Value of a Share on
the Grant Date.

9.3.  Terms and Conditions.  Except as expressly provided herein, each Stock
Appreciation Right that is granted hereunder shall be subject to the terms and
conditions specified in the applicable Award Certificate.  A Stock Appreciation
Right that is granted with a related Option shall be subject to the same terms
and conditions as the Option, shall be exercisable only to the extent its

                                      -11-
<PAGE>

related Option is exercisable, and shall terminate or be forfeited and cease to
be exercisable when the term of the related Option expires or the related Option
is forfeited.

9.4.  Form of Payment.  The Committee shall determine, in each case, whether the
payment to a Participant upon exercise of a Stock Appreciation Right will be in
the form of all cash, all Shares (which may be Restricted Shares) or any
combination thereof.  If payment is to be made in Shares, the number of Shares
shall be equal to the value of the Stock Appreciation Right, divided by the
Stock Appreciation Right Fair Market Value of Shares on the date of exercise.

9.5.  Proceeds.  The Committee shall determine the timing of any payment made in
cash, Shares or a combination thereof upon exercise of a Stock Appreciation
Right hereunder, whether in a lump sum, in annual installments or otherwise
deferred, and the Committee shall determine whether such payments may bear
interest or dividend equivalents pursuant to Section 11.

10.  BONUS SHARES AND RESTRICTED SHARES

10.1.  Awards.  An Award of Shares or Restricted Shares may be made at such time
or times determined by the Committee following the Effective Date to any person
who is an Eligible Participant.  The terms and conditions of payment of any
Award, including, without limitation, what part of such Award shall be paid in
unrestricted Shares or Restricted Shares, the time or times of payment of any
Award, and the time or times of the lapse of the restrictions on Restricted
Shares shall be set forth in the applicable Award Certificate.

10.2.  Shares.  For the purpose of determining the number of Shares to be used
in payment of an Award denominated in cash but payable in whole or in part in
Shares or Restricted Shares, the cash value of the Award to be so paid shall be
divided by the Fair Market Value of a Share on the date of the determination of
the amount of the Award by the Committee, or, if the Committee so directs, the
date immediately preceding the date the Award is paid.

10.3.  Restricted Shares.  An Award of Restricted Shares shall be delivered to
the Participant at the time of grant either by book-entry registration or by
delivering to the Participant, or a custodian or escrow agent (including without
limitation the Company or one or more of its employees) designated by the
Committee, a certificate or certificates for such Restricted Shares, registered
in the name of such Participant.  Except to the extent otherwise provided in the
applicable Award Certificate, the Participant shall have all of the rights of a
stockholder with respect to such Restricted Shares.

10.4.  Terms and Conditions.  Restricted Shares shall be subject to such terms
and conditions, and to such restrictions against sale, transfer or other
disposition, as may be set forth in the applicable Award Certificate.  Unless
otherwise set forth in the applicable Award Certificate, new, additional or
different Shares or other securities resulting from any adjustment to or
substitution for Restricted Shares pursuant to Section 6 shall be subject to the
same terms, conditions, and restrictions as the Restricted Shares prior to such
adjustment or substitution.  The Committee may remove, modify or accelerate the
removal of forfeiture conditions and other restrictions on any Restricted Shares
in the event of hardship or Disability of the Participant while employed (or
while providing services as a director), in connection with the Participant's
Termination of Service or relocation to another country, or for such other
reasons as the Committee may deem appropriate, except to the extent that such
action would cause a Qualified Performance-Based Award to cease to qualify for
the Section 162(m) Exemption.  In the event of the death of a Participant
following the transfer of Restricted Shares to him or her, the legal
representative of the Participant, the beneficiary designated in writing by the
Participant during his or her lifetime, or the person

                                      -12-
<PAGE>

receiving such Shares under the Participant's will or under the laws of descent
and distribution shall take such Shares subject to the same restrictions,
conditions and provisions in effect at the time of the Participant's death, to
the extent applicable, unless otherwise set forth in the applicable Award
Certificate.

11.  DIVIDENDS, DIVIDEND EQUIVALENTS AND INTEREST EQUIVALENTS

11.1.  No Cash Dividends.  No cash dividends shall be paid on Shares that have
been awarded but not registered or delivered.  The applicable Award Certificate
may provide for the payment of dividend equivalents with respect to any Option,
Stock Appreciation Right or other Award pursuant to which Shares are or may
become deliverable in the future, equal in value to the cash dividends that
would have been paid with respect to each Share subject to such Award, if it had
been outstanding during the period between the date of the Award and the time
each such Share is delivered or the Award is forfeited as to such Share.
"Dividend equivalents" may be:

(a)  paid in cash or Shares, either from time to time prior to or at the time of
     the delivery of such Shares, or upon expiration of the Option or Stock
     Appreciation Right, if it shall not have been fully exercised (except that
     payment of the dividend equivalents on Incentive Options may not be made
     prior to exercise); or

(b)  converted into contingently credited Shares (with respect to which dividend
     equivalents shall accrue) in such manner, at such value, and deliverable at
     such time or times as may be set forth in the applicable Award Certificate.

11.2.  Interest Equivalents.  The applicable Award Certificate may provide for
payment of interest equivalents (i) on any portion of any Award payable at a
future time in cash, and (ii) on dividend equivalents that are payable at a
future time in cash.

11.3.  Restricted Shares.  The applicable Award Certificate may provide that
dividends paid on Restricted Shares shall, during the applicable restricted
period, be held by the Company to be paid upon the lapse of restrictions or to
be forfeited upon forfeiture of the Shares.

12.  MISCELLANEOUS PROVISIONS

12.1.  Non-Transferability.  During a Participant's lifetime, his or her Options
and Stock Appreciation Rights shall be exercisable only by the Participant.  No
Awards shall be transferable other than by will or the laws of descent and
distribution; no Awards shall be subject, in whole or in part, to attachment,
execution or levy of any kind; and any purported transfer in violation hereof
shall be null and void.  Without limiting the generality of the foregoing, no
domestic relations order purporting to authorize a transfer of an Award shall be
recognized as valid.  The Committee may establish such procedures as it deems
appropriate for a Participant to designate a beneficiary to whom any amounts
payable or Shares deliverable in the event of, or following, the Participant's
death, may be provided.

12.2.  No Right to Continued Employment or Service.  Nothing contained in this
Incentive Plan, any Award Certificate or any booklet or document describing or
referring to this Incentive Plan shall be deemed to confer on any Eligible
Participant the right to continue as an employee or director of the Company or
an Affiliate, whether for the duration of a Participant's Award vesting schedule
or otherwise, or affect the right of the Company or an Affiliate to terminate
the employment or service of any such person for any reason.

                                      -13-
<PAGE>

12.3.  Governing Law; Construction.  This Incentive Plan and any actions taken
hereunder shall be governed by, and construed in accordance with, the laws of
the State of Delaware, without regard to the application of the conflicts of
laws provisions thereof.  Titles and headings to Sections are for purposes of
reference only, and shall in no way limit, define or otherwise affect the
meaning or interpretation of this Incentive Plan.

12.4.  Certain Tax Matters.  Notwithstanding any other provision of this
Incentive Plan, the Committee may make such provisions and take such steps as it
may deem necessary or appropriate for the withholding of any taxes that the
Company is required by any law or regulation of any governmental authority,
whether federal, state or local, domestic or foreign, to withhold in connection
with the grant or exercise of any Option or otherwise in connection with any
Option, any Stock Appreciation Right or the exercise thereof, or otherwise in
connection with any Award, including without limitation the withholding of cash
or Shares that would be paid or delivered pursuant to such exercise or Award or
any other exercise or Award under this Incentive Plan until the Participant
reimburses the Company for the amount the Company is required to withhold with
respect to such taxes, or cancelling any portion of such Award or any other
Award under this Incentive Plan in an amount sufficient to reimburse the Company
for the minimum amount it is required to so withhold, or selling any property
contingently credited by the Company for the purpose of paying such Award or any
other Award under this Incentive Plan, in order to withhold or reimburse the
Company for the minimum amount it is required to so withhold.  In addition, the
Committee may establish appropriate procedures to ensure that it receives prompt
notice of any event that may make available to the Company or any Affiliate any
tax deduction in connection with an Award.

12.5.  Foreign Participants.  In order to facilitate the granting of Awards to
Eligible Participants who are foreign nationals or who are employed outside of
the United States of America, the Committee may provide for such special terms
and conditions, including without limitation substitutes for Awards, as the
Committee may consider necessary or appropriate to accommodate differences in
local law, tax policy or custom.  The Committee may approve any supplements to,
or amendments, restatements or alternative versions of this Incentive Plan as it
may consider necessary or appropriate for the purposes of this Section 12.5
without thereby affecting the terms of this Incentive Plan as in effect for any
other purpose, and the Secretary or other appropriate officer of the Company may
certify any such documents as having been approved and adopted pursuant to
properly delegated authority; provided, that no such supplements, amendments,
restatements or alternative versions shall include any provisions that are
inconsistent with the terms of this Incentive Plan, as then in effect.
Participants subject to the laws of a foreign jurisdiction may request copies
of, or the right to view, any materials that are required to be provided by the
Company pursuant to the laws of such jurisdiction.

12.6.  No Rights as a Stockholder.  No Participant shall have any rights as a
stockholder with respect to any Shares to be delivered pursuant to an Award
prior to the date that the Participant is recorded as the holder of such Shares
on the records of the Company and such Shares are delivered to such Participant
by book-entry registration or delivery of a certificate or certificates therefor
to the Participant, or to a custodian or escrow agent designated by the
Committee (which may include, without limitation, the Company or one or more of
its employees).

12.7.  No Right to Award.  No employee or other person shall have any claim or
right to be granted an Award under this Incentive Plan.  Having received an
Award under this Incentive Plan shall not give a Participant or other person any
right to receive any other Award under this Incentive Plan.  A Participant shall
have no rights or interests in any Award, except as set forth herein and in the
applicable Award Certificate.

                                      -14-
<PAGE>

12.8.  Unfunded Plan.  It is presently intended that this Incentive Plan shall
be unfunded.  Except for reserving a sufficient number of authorized Shares, to
the extent required by law to meet the requirements of this Incentive Plan, the
Company shall not be required to establish any special or separate fund or to
make any other segregation of assets to assure the delivery of Shares relating
to Awards granted pursuant to this Incentive Plan.

12.9.  Exclusion from Pension and other Benefit Plan Computation.  Except to the
extent otherwise required by applicable law, by exercise of an Option or Stock
Appreciation Right or receipt of another type of Award, (i) each Participant
shall be deemed to have agreed that such Award is special incentive compensation
that will not be taken into account, in any manner, as salary, compensation or
bonus in determining the amount of any payment under any pension, retirement or
other employee benefit plan of the Company or an Affiliate, and (ii) each
beneficiary of a deceased Participant shall be deemed to have agreed that such
Award will not affect the amount of any life insurance coverage, if any,
provided by the Company or an Affiliate on the life of the Participant that is
payable to the beneficiary under any life insurance plan covering employees or
directors of the Company or an Affiliate.

12.10.  Notice.  Except as otherwise provided in this Incentive Plan, all
notices or other communications required or permitted to be given under this
Incentive Plan to the Company shall be in writing and shall be deemed to have
been duly given if delivered personally or mailed, postage pre-paid, as follows:
(i) if to the Company, at its principal business address to the attention of the
Secretary; and (ii) if to any Participant, at the last address of the
Participant known to the sender at the time the notice or other communication is
sent.

12.11.  Inurement of Rights and Obligations.  The rights and obligations under
this Incentive Plan and any related documents shall inure to the benefit of, and
shall be binding upon, the Company, its successors and assigns, and the
Participants and their beneficiaries.

12.12.  Costs and Expenses of This Incentive Plan.  Except as otherwise provided
herein, the costs and expenses of administering this Incentive Plan shall be
borne by the Company, and shall not be charged to any Award nor to any
Participant receiving an Award.  Costs and expenses associated with the
redemption or exercise of any Award under this Incentive Plan, including, but
not limited to, commissions charged by any agent of the Company, may be charged
to the Participant.

12.13.  No Limitation on Rights of the Company

(a)  The grant of any Award shall not in any way affect the right or power of
     the Company to make adjustments, reclassifications, or changes in its
     capital or business structure or to merge, consolidate, dissolve,
     liquidate, sell or transfer all or any part of its business or assets.
     Further, this Incentive Plan shall not restrict the authority of the
     Company, for proper corporate purposes, to grant or assume Awards, other
     than under this Incentive Plan, to or with respect to any other person.

(b)  If the Committee so directs, the Company may issue or transfer Shares to an
     Affiliate, for such lawful consideration as the Committee may specify, upon
     the condition or understanding that the Affiliate will transfer such Shares
     to a Participant in accordance with the terms of an Award granted to such
     Participant and specified by the Committee pursuant to the provisions of
     this Incentive Plan.  All Shares issued pursuant to Awards that are
     forfeited shall revert to the Company upon such forfeiture.

                                      -15-
<PAGE>

12.14.  Legal Requirements

(a)  Restrictions on Resale.  Notwithstanding any other provision of this
     Incentive Plan, no Participant who acquires Shares pursuant to this
     Incentive Plan may, during any period of time that such Participant is an
     affiliate of the Company (within the meaning of the rules and regulations
     of the Securities and Exchange Commission under the Securities Act of 1933,
     as amended (the "1933 Act")), sell such Shares, unless such offer and sale
     is made (i) pursuant to an effective registration statement under the 1933
     Act, which is current and includes the Shares to be sold, or (ii) pursuant
     to an appropriate exemption from the registration requirement of the 1933
     Act, such as that set forth in Rule 144 promulgated under the 1933 Act.

(b)  Registration, Listing and Qualification of Shares.  Notwithstanding any
     other provision of this Incentive Plan, if at any time the Committee shall
     determine that the registration, listing or qualification of the Shares
     covered by an Award upon any securities exchange or under any foreign,
     federal, state or local law or practice, or the consent or approval of any
     governmental regulatory body, is necessary or desirable as a condition of,
     or in connection with, the granting of such Award or the purchase or
     receipt of Shares thereunder, no Shares may be purchased, delivered or
     received pursuant to such Award unless and until such registration,
     listing, qualification, consent or approval shall have been effected or
     obtained free of any condition not acceptable to the Committee.  Any
     Participant receiving or purchasing Shares pursuant to an Award shall make
     such representations and agreements and furnish such information as the
     Committee may request to assure compliance with the foregoing or any other
     applicable legal requirements.  The Company shall not be required to issue
     or deliver any certificate or certificates for Shares under this Incentive
     Plan prior to the Committee's determination that all related requirements
     have been fulfilled.  The Company shall in no event be obligated to
     register any securities pursuant to the 1933 Act or applicable state or
     foreign law or to take any other action in order to cause the issuance and
     delivery of such certificates to comply with any such law, regulation or
     requirement.

12.15.  Fractional Shares.  The Company shall not be required to issue any
fractional Shares pursuant to this Incentive Plan.  The Committee may provide
for the elimination of fractions or for the settlement thereof in cash.

12.16.  Amendment or Termination

(a)  The Board People Committee may, from time to time, amend or modify this
     Incentive Plan or any outstanding Awards, including, without limitation, to
     authorize the Committee to make Awards payable in other securities or other
     forms of property of a kind to be determined by the Committee, and such
     other amendments as may be necessary or desirable to implement such Awards,
     or terminate this Incentive Plan or any provision thereof; provided, that
     no amendments or modifications to this Incentive Plan shall, without the
     prior approval of the stockholders normally entitled to vote for the
     election of directors of the Company, permit the Company to decrease the
     Exercise Price of any outstanding Option or Stock Appreciation Right; and
     provided, further, that amendments to Section 5.1 shall require the
     approval of the Board.

(b)  No amendment to or termination of this Incentive Plan or any provision
     hereof, and no amendment to or cancellation of any outstanding Award shall,
     without the written consent of the affected Participant, adversely affect
     any outstanding Award.

                                      -16-
<PAGE>

(c)  Notwithstanding the above provisions, the Board People Committee shall have
     authority to amend outstanding Awards and this Incentive Plan to take into
     account changes in law and tax and accounting rules as well as other
     developments, and to grant Awards that qualify for beneficial treatment
     under such rules, without stockholder approval and without the consent of
     affected Participants.

12.17.  Change of Control

(a)  The provisions of this Section 12.17(a) shall apply notwithstanding any
     provision of this Incentive Plan other than Sections 12.4, 12.14, and
     12.17(b), unless the Committee determines otherwise at the time of grant.
     Upon the occurrence of a Monsanto Change of Control, (i) any Awards
     outstanding as of the date of such Change of Control, and that are not then
     vested, shall become fully vested, (ii) all then-outstanding Options and
     Stock Appreciation Rights shall be exercisable, and (iii) any restrictions
     or other conditions applicable to any outstanding Awards shall lapse, and
     such Awards shall become free of all restrictions and conditions.  In
     addition, upon the occurrence of a Second Trigger after a Pharmacia Change
     of Control with respect to a Participant, (i) any Awards held by such
     Participant that are outstanding as of the date of such Second Trigger, and
     that are not then vested, shall become fully vested, (ii) all then-
     outstanding Options and Stock Appreciation Rights held by such Participant
     shall be exercisable, and (iii) any restrictions or other conditions
     applicable to any outstanding Awards held by such Participant shall lapse,
     and such Awards shall become free of all restrictions and conditions.

(b)  With respect to Awards held by a Participant who is also a Participant in
     the Monsanto Company Excess Parachute Tax Indemnity Plan (the "Indemnity
     Plan") or any comparable or successor plan at the time of a Change of
     Control, the vesting and lapse of restrictions and conditions provided for
     in Section 12.17(a) shall not occur as a result of that Change of Control,
     to the extent that the provisions of Section 4(b) of the Indemnity Plan (or
     any comparable provision of such comparable or successor plan) require that
     such vesting and lapse not occur.

                                      -17-<PAGE>

                                                                    EXHIBIT 10.3

                           FORM OF CHANGE-OF-CONTROL
                         EMPLOYMENT SECURITY AGREEMENT
                         -----------------------------

          AGREEMENT, by and between Monsanto Company, a Delaware corporation
(the "Company"), and ___________ (the "Executive"), dated as of the 23rd day of
August, 2000 (this "Agreement").

          The Board of Directors of the Company (the "Board"), has determined
that it is in the best interests of the Company and its shareholders to assure
that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control.
The Board believes it is imperative to diminish the inevitable distraction of
the Executive by virtue of the personal uncertainties and risks created by a
pending or threatened Change of Control and to encourage the Executive's full
attention and dedication to the Company currently and in the event of any
threatened or pending Change of Control, and to provide the Executive with
compensation and benefits arrangements upon a Change of Control that ensure that
the compensation and benefits expectations of the Executive will be satisfied
and that are competitive with those of other corporations.  Therefore, in order
to accomplish these objectives, the Board has caused the Company to enter into
this Agreement.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1. Effect of Agreement. (a) Unless and until there occurs, during the Term
        -------------------
of this Agreement, either a Change of Control or a termination of the
Executive's employment in anticipation of a Change of Control as contemplated by
Section 3(d), (1) Sections 2, 3 and 4 of this Agreement shall have no effect and
shall not give rise to any rights of the Executive, (2) the Executive's
employment shall be "at will," except as may be otherwise provided in any
Employment Agreement, and (3) upon any termination of the Executive's
employment, the Executive shall have no further rights under this Agreement.

     (b) From and after the first date during the Term of this Agreement on
which a Change of Control occurs, this Agreement shall supersede any Employment
Agreements, but shall have no effect on any Other Agreement or Other Plan,
except as specifically provided in Section 5; provided, that [provide for
covenants in employment agreements to survive].

     2.  Terms of Employment. This Section 2 sets forth the terms and conditions
         -------------------
on which the Company agrees to employ the Executive during the period (the
"Protected Period") beginning on the first day during the Term of this Agreement
on which a Change of Control occurs and ending on the third anniversary of that
date, or such earlier date as the Executive's employment terminates as
contemplated by Section 3.

     (a) Position and Duties. (1) During the Protected Period, (A) the
         -------------------
Executive's position (including status, offices, titles and reporting
requirements), authority, duties and responsibilities shall be at least
commensurate in all material respects with the most significant of those held,
exercised and assigned to the Executive at any time during the 120-day period
immediately preceding the date of the Change of Control, and (B) the Executive's
services shall be performed at the office where the Executive was employed
immediately preceding the date of the Change of Control or any office or
location less than 35 miles from such office, unless the
<PAGE>

Executive is on international assignment on the date of the Change of Control
and is relocated as a result of the Executive's being repatriated pursuant to
the terms of the Executive's international assignment agreement as in effect
before the date of the Change of Control.

     (2) During the Protected Period, the Executive agrees to devote reasonable
attention and time during normal business hours (except when on authorized
vacation, holidays or sick leave) to the business and affairs of the Company,
and, to the extent necessary to discharge the responsibilities assigned to the
Executive hereunder, to use the Executive's reasonable best efforts to perform
faithfully and efficiently such responsibilities; provided, that the Executive
may (A) serve on corporate, civic or charitable boards and committees, (B)
deliver lectures, fulfill speaking engagements and teach at educational
institutions, and (C) manage personal investments, so long as such activities do
not significantly interfere with the performance of the Executive's
responsibilities as an employee of the Company in accordance with this
Agreement; and provided, further, that to the extent that any such activities
have been conducted by the Executive before the date of the Change of Control,
the continued conduct of such activities or other activities similar in nature
and scope thereto after the date of the Change of Control shall not be deemed to
interfere with the performance of the Executive's responsibilities to the
Company.

     (b) Compensation. (1) Base Salary. During the Protected Period, the
         ------------      -----------
Executive shall receive a base salary (the "Base Salary"), the annual amount of
which (the "Annual Base Salary Amount") shall be at least equal to 12 times the
highest monthly base salary paid or payable, including any base salary that has
been earned but deferred, to the Executive by the Company and the Affiliated
Companies for the 12-month period immediately preceding the date of the Change
of Control. The Base Salary shall be paid at such intervals as the Company pays
executive salaries generally. During the Protected Period, the Annual Base
Salary Amount shall be reviewed for possible increase at least annually,
beginning no more than 12 months after the last such annual review prior to the
date of the Change of Control. Any increase in the Annual Base Salary Amount
shall not serve to limit or reduce any other obligation to the Executive under
this Agreement. The Annual Base Salary Amount shall not be reduced after any
such increase and the term "Annual Base Salary Amount" shall refer to Annual
Base Salary Amount as so increased.

     (2) Bonuses. In addition to the Base Salary, the Executive shall be awarded
         -------
the following bonuses and incentive compensation. For each fiscal year ending
during the Protected Period, the Executive shall be awarded an annual bonus in
cash (the "Annual Bonus") at least equal to the Average Pre-Change-of-Control
Annual Bonus, which shall be paid no later than the end of the third month of
the fiscal year next following the fiscal year for which the Annual Bonus is
awarded, unless the Executive shall elect to defer the receipt of such Annual
Bonus pursuant to any Other Plan that may permit such deferral. In addition,
during the Protected Period, the Executive shall be entitled to participate in
all long-term, stock-based and other incentive plans, practices, policies and
programs generally applicable to peer executives of the Company and the
Affiliated Companies, but in no event shall such plans, practices, policies and
programs provide the Executive with incentive opportunities less favorable, in
the aggregate, than the most favorable of those provided by the Company and the
Affiliated Companies to the Executive under such plans, practices, policies and
programs as in effect at any time during the 120-day period immediately
preceding the date of the Change of Control, or, if more favorable to

                                      -2-
<PAGE>

the Executive, those generally provided at any time after the date of the Change
of Control to peer executives of the Company and the Affiliated Companies.

     (3) Savings and Retirement Plans. During the Protected Period, the
         ----------------------------
shall be entitled to participate in all savings and retirement plans, practices,
policies and programs generally applicable to peer executives of the Company and
the Affiliated Companies, but in no event shall such plans, practices, policies
and programs provide the Executive with savings opportunities and retirement
benefit opportunities, in each case, less favorable, in the aggregate, than the
most favorable of those provided by the Company and the Affiliated Companies to
the Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the date of the Change
of Control, or, if more favorable to the Executive, those generally provided at
any time after the date of the Change of Control to peer executives of the
Company and the Affiliated Companies. Without limiting the generality of the
foregoing, the Company and the Affiliated Companies shall continue to honor any
Individual SERP[, including without limitation the SERP Letter].

     (4) Welfare Benefit Plans. During the Protected Period, the Executive
         ---------------------
and/or the Executive's family, as the case may be, shall be eligible for
participation in and shall receive all benefits under welfare benefit plans,
practices, policies and programs provided by the Company and the Affiliated
Companies (including without limitation medical, prescription drug, dental,
vision, disability, life insurance, accidental death and dismemberment, and
travel accident insurance plans and programs) to the extent generally applicable
to peer executives of the Company and the Affiliated Companies, but in no event
shall such plans, practices, policies and programs provide the Executive with
benefits that are less favorable, in the aggregate, than the most favorable of
such plans, practices, policies and programs in effect for the Executive at any
time during the 120-day period immediately preceding the date of the Change of
Control, or, if more favorable to the Executive, those generally provided at any
time after the date of the Change of Control to peer executives of the Company
and the Affiliated Companies.

     (5) Expenses. During the Protected Period, the Executive shall be entitled
         --------
to receive prompt reimbursement for all reasonable expenses incurred by the
Executive in accordance with the most favorable policies, practices and
procedures of the Company and the Affiliated Companies in effect for the
Executive at any time during the 120-day period immediately preceding the date
of the Change of Control, or, if more favorable to the Executive, as in effect
generally at any time after the date of the Change of Control with respect to
peer executives of the Company and the Affiliated Companies.

     (6) Fringe Benefits. During the Protected Period, the Executive shall be
         ---------------
entitled to fringe benefits in accordance with the most favorable plans,
practices, programs and policies of the Company and the Affiliated Companies in
effect for the Executive at any time during the 120-day period immediately
preceding the date of the Change of Control, or, if more favorable to the
Executive, as in effect generally at any time after the date of the Change of
Control with respect to peer executives of the Company and the Affiliated
Companies.

     (7) Office and Support Staff. During the Protected Period, the Executive
         ------------------------
be entitled to an office or offices of a size and with furnishings and other
appointments, and to secretarial and other assistance, at least equal to the
most favorable of the foregoing provided to

                                      -3-
<PAGE>

the Executive by the Company and the Affiliated Companies at any time during the
120-day period immediately preceding the date of the Change of Control, or, if
more favorable to the Executive, as provided generally at any time after the
date of the Change of Control with respect to peer executives of the Company and
the Affiliated Companies.

     (8) Vacation. During the Protected Period, the Executive shall be entitled
         --------
to paid vacation in accordance with the most favorable plans, policies, programs
and practices of the Company and the Affiliated Companies as in effect for the
Executive at any time during the 120-day period immediately preceding the date
of the Change of Control, or, if more favorable to the Executive, as in effect
generally at any time after the date of the Change of Control with respect to
peer executives of the Company and the Affiliated Companies.

     3. Termination of Employment. (a) Death or Disability. The Executive's
        -------------------------      -------------------
employment shall terminate automatically if the Executive dies during the
Protected Period.  If the Company determines in good faith that the Disability
of the Executive has occurred during the Protected Period, it may give to the
Executive written notice in accordance with Section 10(b) of its intention to
terminate the Executive's employment.  In such event, the Executive's employment
with the Company shall terminate effective on the 30th day after receipt of such
notice by the Executive, provided that the Executive shall not have returned to
full-time performance of the Executive's duties before such day.

     (b) By the Company. The Company may terminate the Executive's employment
         --------------
during the Protected Period for Cause or without Cause. The termination of the
Executive's employment shall not be deemed to be for Cause, unless and until (1)
the Executive has been given the opportunity, on reasonable advance notice, to
be heard before the Board, together with counsel to the Executive, and (2) there
shall have been delivered to the Executive a copy of a resolution thereafter
duly adopted by the affirmative vote of not less than three-quarters of the
entire membership of the Board (excluding the Executive, if the Executive is a
member of the Board), finding that, in the good faith opinion of the Board, the
Executive is guilty of conduct constituting Cause, and specifying the
particulars thereof in detail.

       (c) By the Executive. The Executive may terminate employment during the
           ----------------
Protected Period for Good Reason or without Good Reason. The Executive's mental
or physical incapacity following the occurrence of an event described in clauses
(a) through (e) of the definition of Good Reason shall not affect the
Executive's ability to terminate employment for Good Reason.

       (d) Termination In Anticipation of a Change of Control. Anything in this
           --------------------------------------------------
Agreement to the contrary notwithstanding, if (1) a Change of Control occurs,
(2) the Executive's employment with the Company is terminated by the Company
before the Change of Control occurs in a manner and under circumstances that
would be considered a termination by the Company without Cause if it had
occurred during the Protected Period, and (3) it is reasonably demonstrated by
the Executive that such termination of employment was at the request of a third
party that had taken steps reasonably calculated to effect the Change of Control
or otherwise arose in connection with or in anticipation of the Change of
Control, then such termination shall be treated for all purposes of this
Agreement as a termination by the Company without Cause during the Protected
Period.

                                      -4-
<PAGE>

       (e) Notice of Termination. Any termination of the Executive's employment
           ---------------------
by the Company or the Executive shall be communicated by Notice of Termination
to the other party hereto given in accordance with Section 10(b). The failure by
the Executive or the Company to set forth in the Notice of Termination any fact
or circumstance that contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, hereunder, or
preclude the Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing their respective rights hereunder.

       4. Obligations of the Company upon Termination. (a) Other than for Cause,
          -------------------------------------------      --------------------
Death or Disability; Good Reason. If, during the Protected Period, the Company
--------------------------------
terminates the Executive's employment other than for Cause or Disability or the
Executive terminates employment for Good Reason and the Executive executes a
release substantially in the form attached hereto as Exhibit A (a "Release"):

       (1) the Company shall pay to the Executive, in a lump sum in cash within
30 days after the Date of Termination, or if later, within 5 days after the
Executive executes the Release, the aggregate of the following amounts:

              (A) the sum of the following amounts, to the extent not previously
       paid to the Executive (the "Accrued Obligations"): (i) the Base Salary
       through the Date of Termination; (ii) a pro rata portion of the Annual
       Bonus for the year in which the Date of Termination occurs, computed as
       the product of (x) the Severance Annual Bonus Amount, and (y) a fraction,
       the numerator of which is the number of days in the current fiscal year
       through the Date of Termination, and the denominator of which is 365; and
       (iii) any accrued pay in lieu of unused vacation; and

              (B) the product of (i) [three] [two] and (ii) the sum of (x) the
       Annual Base Salary Amount, (y) the Severance Annual Bonus Amount, and (z)
       the amount of the employer matching contributions made or credited to the
       Executive's accounts in the Savings Plans for the most recent plan year
       that ended before the date of the Change of Control or, if higher, for
       the most recent plan year that ended after the date of the Change of
       Control (in either case annualized to the extent such plan year consisted
       of less than 12 months and/or the Executive was not eligible to
       participate in such Savings Plan for the full plan year); and

              (C) an amount equal to the excess of (i) the aggregate benefit
       under the Retirement Plan, the SERP and any Individual SERP that the
       Executive would have accrued (whether or not vested) if the Executive's
       employment had continued for the Severance Period, based on the
       assumption that the Executive's compensation during the Severance Period
       was that required by Sections 2(b)(1) and 2(b)(2), over (ii) the actual
       vested benefit, if any, of the Executive under the Retirement Plan, the
       SERP and any Individual SERP, in each case, determined as a single lump
       sum benefit amount as of the Date of Termination, on an actuarial present
       value basis, using actuarial assumptions no less favorable to the
       Executive than the most favorable of those in effect for purposes of
       computing benefit enti-

                                      -5-
<PAGE>

       tlements under the Retirement Plan and the SERP at any time from the day
       before the date of the Change of Control;

       (2) for the Severance Period, the Company shall continue Specified
Welfare Benefits to the Executive and/or the Executive's family; provided, that
if the Executive becomes reemployed with another employer and is eligible to
receive medical, dental, prescription drug and vision benefits under another
employer-provided plan during the Severance Period, the comparable Specified
Welfare Benefits shall be secondary to those provided under such other plan
while the Executive is so eligible;

       (3) for purposes of determining the Executive's eligibility for Retiree
Welfare Benefits, the Executive shall be considered to have remained employed
until the end of the Severance Period and to have retired on the last day of
such period, and, if the Executive has reached age 50 as of the Date of
Termination, then the Executive shall be fully vested in, and shall be entitled
to receive, beginning at the end of the Severance Period, lifetime retiree
medical benefits at least as favorable as those to which the Executive would
have been entitled if the Executive had retired with full eligibility for the
Retiree Welfare Benefits in effect as of the date of the Change of Control;

       (4) the Company shall provide the Executive with outplacement services,
in accordance with its normal practice for its most senior executives, as in
effect before the date of the Change of Control, from the outplacement firm or
firms with which the Company has contracted as of the Date of Termination or
thereafter; [provided, that the cost to the Company shall not exceed __% of the
Annual Base Salary]; and

       (5) to the extent not theretofore paid or provided, the Company shall
timely pay or provide to the Executive any Other Benefits.

Notwithstanding the foregoing:  (i) if the Company determines that it is not
possible to provide any of the Specified Welfare Benefits or Retiree Welfare
Benefits as required above through plans sponsored by the Company and the
Affiliated Companies under the terms thereof, or that providing any of the
Specified Welfare Benefits or Retiree Welfare Benefits through such plans would
have adverse tax consequences for the Executive, then the Company shall provide
such Specified Welfare Benefits or Retiree Welfare Benefits in a manner that
keeps the Executive in the same position, on an After-Tax basis, as if the
Executive had remained employed by the Company during the Severance Period;
provided, that if it is not reasonably practicable to so provide such Specified
Welfare Benefits or Retiree Welfare Benefits, then the Company shall, instead,
make a cash payment that is equal, on an After-Tax basis, to the value of such
Specified Welfare Benefits or Retiree Welfare Benefits; and (ii) any disability
benefits to which the Executive might otherwise become entitled pursuant to any
of the Specified Welfare Benefits shall begin at the conclusion of the Severance
Period.

       (b) Death. If the Executive's employment is terminated because of the
           -----
Executive's death during the Protected Period, the Company shall pay the Accrued
Obligations to the Executive's estate or beneficiaries, as applicable, in a lump
sum in cash within 30 days of the Date of Termination, shall timely pay or
deliver any of the Other Benefits, and shall have no other severance obligations
under this Agreement. For purposes of this Section 4(b), the term

                                      -6-
<PAGE>

"Other Benefits" shall include without limitation, and the Executive's estate
and/or beneficiaries shall be entitled to receive, benefits at least equal to
the most favorable benefits provided by the Company and the Affiliated Companies
to the estates and beneficiaries of peer executives of the Company and the
Affiliated Companies under such plans, programs, practices and policies relating
to death benefits, if any, as in effect with respect to other peer executives
and their beneficiaries at any time during the 120-day period immediately
preceding the date of the Change of Control, or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect at any
time after the date of the Change of Control generally with respect to peer
executives of the Company and the Affiliated Companies and their beneficiaries.

     (c) Disability. If the Executive's employment is terminated because of the
         ----------
Executive's Disability during the Protected Period, the Company shall pay the
Accrued Obligations to the Executive in a lump sum in cash within 30 days of the
Date of Termination, shall timely pay or deliver any Other Benefits, and shall
have no other severance obligations under this Agreement. For purposes of this
Section 4(c), the term "Other Benefits" shall include, without limitation, and
the Executive shall be entitled to receive, disability and other benefits at
least equal to the most favorable of those generally provided by the Company and
the Affiliated Companies to disabled executives and/or their families in
accordance with such plans, programs, practices and policies relating to
disability, if any, as in effect generally with respect to peer executives and
their families at any time during the 120-day period immediately preceding the
date of the Change of Control, or, if more favorable to the Executive and/or the
Executive's family, as in effect at any time after the date of the Change of
Control generally with respect to peer executives of the Company and the
Affiliated Companies and their families.

     (d) Cause; Other than for Good Reason. If the Executive's employment is
         ---------------------------------
terminated for Cause during the Protected Period, the Company shall provide to
the Executive the Base Salary through the Date of Termination and any Other
Benefits, in each case, to the extent theretofore unpaid, and shall have no
other severance obligations under this Agreement. If the Executive voluntarily
terminates employment during the Protected Period, other than for Good Reason,
the Company shall pay the Accrued Obligations to the Executive in a lump sum in
cash within 30 days of the Date of Termination, shall timely pay or deliver any
Other Benefits, and shall have no other severance obligations under this
Agreement.

       5. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or
          -------------------------
limit the Executive's continuing or future participation in any Other Plan for
which the Executive may qualify, nor shall anything herein limit or otherwise
affect such rights as the Executive may have under any Other Agreement. Amounts
that are vested benefits or that the Executive is otherwise entitled to receive
under any Other Plan or any Other Agreement shall be payable in accordance with
such Other Plan or Other Agreement, except as explicitly modified by this
Agreement. Notwithstanding the foregoing, if the Executive receives payments and
benefits pursuant to Section 4(a), then (a) the Executive shall not be entitled
to any severance pay or benefits under any severance plan, program or policy of
the Company and the Affiliated Companies, unless otherwise specifically provided
therein in a specific reference to this Agreement, and (b) the Executive shall
not be treated as having any additional years of service or age for purposes of
any Other Plan or Other Agreement by virtue of receiving such payments and
benefits, unless such Other Plan or Other Agreement specifically so provides.

                                      -7-
<PAGE>

       6. Full Settlement; Legal Fees. The Company's obligation to make the
          ---------------------------
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action that the Company or any Affiliated
Company may have against the Executive or others. In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement, and, except as specifically provided in Section
4(a)(2), such amounts shall not be reduced, regardless of whether the Executive
obtains other employment. The Company agrees to pay as incurred, within 10 days
following the Company's receipt of an invoice from the Executive, to the full
extent permitted by law, all legal fees and expenses that the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company, the Executive or others of the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereof (whether such contest is between the Company and the Executive or
between either of them and any third party, and including as a result of any
contest by the Executive about the amount of any payment pursuant to this
Agreement), plus, in each case, interest on any delayed payment at the
applicable federal rate provided for in Section 7872(f)(2)(A) of the Code;
provided, that the Company shall not be required to pay any fees or expenses
charged by any accounting or consulting firm to perform calculations or make
determinations required to be carried out by the Accounting Firm pursuant to
Section 7.

       7. Certain Additional Payments by the Company. (a) If any Payment is
          ------------------------------------------
subject to the Excise Tax, then the Company shall pay the Executive a Gross-Up
Payment (regardless of whether the Executive's employment has terminated).
Notwithstanding the foregoing, if the Parachute Value of all Payments does not
exceed 110% of the Safe Harbor Amount, then the Company shall not pay the
Executive a Gross-Up Payment, and the Payments due under this Agreement shall be
reduced so that the Parachute Value of all Payments, in the aggregate, equals
the Safe Harbor Amount; provided, that if even after all Payments due hereunder
are reduced to zero, the Parachute Value of all Payments would still exceed the
Safe Harbor Amount, then no reduction of any Payments shall be made. The
reduction of the Payments due hereunder, if applicable, shall be made by first
reducing the payments under Section 4(a)(1)(B), unless an alternative method of
reduction is elected by the Executive, and in any event shall be made in such a
manner as to maximize the economic present value of all Payments actually made
to the Executive, determined by the Accounting Firm as of the date of the change
of control for purposes of Section 280G of the Code using the discount rate
required by Section 280G(d)(4) of the Code.

       (b) All determinations required to be made under this Section 7,
including whether and when Gross-Up Payments are required and the amount of such
Gross-Up Payments, whether and in what manner any Payments are to be reduced
pursuant to the second sentence of Section 7(a), and the assumptions to be
utilized in arriving at such determinations, shall be made by the Accounting
Firm, and shall be binding upon the Company and the Executive, except to the
extent the Internal Revenue Service or a court of competent jurisdiction makes a
final and binding determination inconsistent therewith. The Accounting Firm
shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after receiving notice from the Executive that
there has been a Payment or such earlier time as may be requested by the
Company. All fees and expenses of the Accounting Firm shall be borne solely by
the Company. Any Gross-Up Payment that becomes due pursuant to this Section 7
shall be paid by the Company to the Executive within five days of the receipt of
the Accounting

                                      -8-
<PAGE>

Firm's determination, or, if later, at least 20 business days before the
Executive is obligated to pay the related Excise Tax. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments that will not have been made by the Company should have been
made (an "Underpayment"). In the event the Accounting Firm determines that there
has been an Underpayment or the Executive is required to make a payment of any
Excise Tax as a result of a claim described in Section 7(c), then the Accounting
Firm shall determine the amount of the Underpayment that has occurred and any
such Underpayment shall be promptly paid by the Company to or for the benefit of
the Executive.

       (c) The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of a Gross-Up Payment. Such notification shall be given as soon as
practicable, but no later than 10 business days after the Executive is informed
in writing of such claim. The Executive shall apprise the Company of the nature
of such claim and the date on which such claim is requested to be paid. The
Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which the Executive gives such notice to the Company (or
such shorter period ending on the date that any payment of taxes with respect to
such claim is due). If the Company notifies the Executive in writing prior to
the expiration of such period that the Company desires to contest such claim,
the Executive shall:

       (1)    give the Company any information reasonably requested by the
              Company relating to such claim,

       (2)    take such action in connection with contesting such claim as the
              Company shall reasonably request in writing from time to time,
              including without limitation accepting legal representation with
              respect to such claim by an attorney reasonably selected by the
              Company,

       (3)    cooperate with the Company in good faith in order effectively to
              contest such claim, and

       (4)    permit the Company to participate in any proceedings relating to
              such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest, and shall indemnify and hold the Executive harmless, on an
After-Tax basis, for any Excise Tax or Taxes imposed as a result of such
representation and payment of costs and expenses.  Without limitation on the
foregoing provisions of this Section 7(c), the Company shall control all
proceedings taken in connection with such contest, and, at its sole discretion,
may pursue or forgo any and all administrative appeals, proceedings, hearings
and conferences with the applicable taxing authority in respect of such claim
and may, at its sole discretion, either direct the Executive to pay the Taxes
claimed and sue for a refund or contest the claim in any permissible manner, and
the Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall determine; provided, however, that, if
the Company directs the Executive

                                      -9-
<PAGE>

to pay such claim and sue for a refund, the Company shall advance the amount of
such payment to the Executive, on an interest-free basis, and shall indemnify
and hold the Executive harmless, on an After-Tax basis, from any Excise Tax or
Taxes imposed with respect to such advance or with respect to any imputed income
in connection with such advance; and provided, further, that any extension of
the relevant statute of limitations is limited solely to such contested amount.
Furthermore, the Company's control of the contest shall be limited to issues
with respect to which the Gross-Up Payment would be payable hereunder, and the
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority.

       (d) If, at any time after receiving a Gross-Up Payment or an advance
pursuant to Section 7(c), the Executive receives any refund of the associated
Excise Tax, the Executive shall (subject to the Company's having complied with
the requirements of Section 7(c), if applicable) promptly pay to the Company the
amount of such refund, together with any interest paid or credited thereon net
of all Taxes applicable thereto. If, after the Executive receives an advance
pursuant to Section 7(c), a determination is made that the Executive is not
entitled to any refund with respect to such claim and the Company does not
notify the Executive in writing of its intent to contest such denial of refund
prior to the expiration of 30 days after such determination, then such advance
shall be forgiven and shall not be required to be repaid, and the amount of any
Gross-Up Payment owed to the Executive shall be reduced (but not below zero) by
the amount of such advance.

       (e) Notwithstanding any other provision of this Section 7, the Company
may, in its sole discretion, withhold and pay over to the Internal Revenue
Service or any other applicable taxing authority, for the benefit of the
Executive, all or any portion of any Gross-Up Payment, and the Executive hereby
consents to such withholding.

       8. Confidential Information. (a) The Executive shall use the Executive's
          ------------------------
best efforts and diligence both during and after employment by the Company and
the Affiliated Companies to protect the confidential, trade secret and/or
proprietary character of all Confidential Information. The Executive shall not,
directly or indirectly, use (for the Executive or another) or disclose any
Confidential Information, for so long as it shall remain proprietary or
protectible as confidential or trade secret information, except as may be
necessary for the performance of the Executive's duties with the Company and the
Affiliated Companies. The Executive shall promptly deliver to the Company, at
the termination of the Executive's employment, or at any other time at the
Company's request, without retaining any copies, all documents and other
material in the Executive's possession relating, directly or indirectly, to any
Confidential Information.

       (b) Each of the Executive's obligations in this Section 8 shall also
apply to the confidential, trade secret and proprietary information learned or
acquired by the Executive during the Executive's employment from others with
whom the Company or any Affiliated Company has a business relationship. The
Executive understands that the Executive is not to disclose to the Company or
any Affiliated Company, or use for its benefit, any of the confidential, trade
secret or proprietary information of others, including any of the Executive's
former employers.

                                      -10-
<PAGE>

       (c) In no event shall an asserted violation of the provisions of this
Section 8 constitute a basis for deferring or withholding any amounts otherwise
payable to the Executive under this Agreement.

       9. Successors. (a) This Agreement is personal to the Executive, and,
          ----------
without the prior written consent of the Company shall not be assignable by the
Executive other than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

       (b) This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns. Except as provided in Section 9(c),
without the prior written consent of the Executive, this Agreement shall not be
assignable by the Company.

       (c) The Company shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.

       10. Miscellaneous. (a) This Agreement shall be governed by and construed
           -------------
in accordance with the laws of the State of Delaware, without reference to
principles of conflict of laws. The captions of this Agreement are not part of
the provisions hereof and shall have no force or effect. This Agreement may not
be amended or modified other than by a written agreement that is specifically
identified as an amendment of this Agreement and executed by the Executive and
by an authorized officer of the Company in a single instrument.

       (b) All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

       If to the Executive:
       -------------------

               800 North Lindbergh Boulevard
               St. Louis, Missouri  63167

       If to the Company:
       -----------------

               800 North Lindbergh Boulevard
               St. Louis, Missouri  63167

               Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

       (c) The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement.

                                      -11-
<PAGE>

       (d) The Company may withhold from any amounts payable under this
Agreement such Taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

       (e) The Executive's or the Company's failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any
right the Executive or the Company may have hereunder, including without
limitation the right of the Executive to terminate employment for Good Reason
pursuant to Section 3(c), shall not be deemed to be a waiver of such provision
or right or any other provision or right of this Agreement.

       11. Certain Definitions. The following terms shall have the meanings set
           -------------------
forth below for purposes of this Agreement.

          "Accounting Firm" means the certified public accounting firm that was
serving as the Company's auditors immediately before the date of the Change of
Control.

          "Accrued Obligations" has the meaning set forth in Section 4(a)(1)(A).

          "Affiliated Company" means any company controlled by the Company.

          "After-Tax" means after taking into account all applicable Taxes and
Excise Tax.

          "Agreement" is defined in the first paragraph of the Agreement.

          "Annual Base Salary Amount" has the meaning set forth in Section
2(b)(1).

          "Annual Bonus" has the meaning set forth in Section 2(b)(2).

          "Average Pre-Change-of-Control Annual Bonus" means a bonus amount
based upon the Executive's average annual bonuses earned for fiscal years
beginning before the date of the Change of Control under the Company's annual
incentive program as in effect from time to time and under the Monsanto Annual
Incentive Program to the extent the Executive has participated therein for 2000
and prior years, calculated as follows.  If, as of the date of the Change of
Control, the Executive has been employed by the Company and the Affiliated
Companies and Pharmacia Corporation (formerly known as Monsanto Company) and its
subsidiaries for at least the most recent three full fiscal years ending on or
before the date of the Change of Control, and was eligible to earn an annual
bonus under such programs for each such fiscal year, then the Average Pre-
Change-of-Control Annual Bonus means the average of the annual bonuses earned by
the Executive for each of such fiscal years.  If, as of the date of the Change
of Control, the Executive has been employed by the Company and the Affiliated
Companies and Pharmacia Corporation and its subsidiaries for less than the most
recent three full fiscal years ending on or before the date of the Change of
Control, or was not eligible to earn an annual bonus under such programs for
each such fiscal year, then the Average Pre-Change-of-Control Annual Bonus means
the average of the annual bonuses earned by the Executive for each of such
fiscal years for which the Executive was eligible to earn such an annual bonus.
If the Executive was eligible to earn such an annual bonus for any fiscal year,
but did not in fact earn such an annual bonus, then the Executive's annual bonus
for such fiscal year shall be deemed to be zero for purposes of determining the
Average Pre-Change-of-Control Annual

                                      -12-
<PAGE>

Bonus. If the Executive earned an annual bonus under such programs for a period
of less than 12 months, the amount of such annual bonus shall be annualized for
purposes of determining the Average Pre-Change-of-Control Annual Bonus. Finally,
if the Executive was not eligible to earn such an annual bonus for any fiscal
year ending on or before the date of the Change of Control, then the Average
Pre-Change-of-Control Annual Bonus shall be deemed to equal the Executive's
target annual bonus as in effect immediately before the date of the Change of
Control.

          "Base Salary" has the meaning set forth in Section 2(b)(1).

          "Board" has the meaning set forth in the second paragraph of this
Agreement.

          "Cause" means (a) the Executive's willful and continued failure to
perform substantially the Executive's duties as contemplated by Section
2(a)(1)(A) (except as a result of the Executive's incapacity due to physical or
mental illness or injury, or following the Executive's delivery of a Notice of
Termination for Good Reason), after a written demand for substantial performance
is delivered to the Executive by the Board [or the Chief Executive Officer of
the Company] which specifically identifies the manner in which the Board [or
Chief Executive Officer] believes that the Executive has not substantially
performed the Executive's duties, or (b) the Executive's willful engaging in
illegal conduct or gross misconduct that is materially and demonstrably
injurious to the Company.  For purposes of this definition, no act or failure to
act on the part of the Executive shall be considered "willful" unless it is
done, or omitted to be done, by the Executive in bad faith or without reasonable
belief that the Executive's action or omission was in the best interests of the
Company.  Any act, or failure to act, based upon authority given pursuant to a
resolution duly adopted by the Board [or upon the instructions of the Chief
Executive Officer of the Company] [or a senior officer of the Company] or based
upon the advice of counsel for the Company shall be conclusively presumed to be
done, or omitted to be done, by the Executive in good faith and in the best
interests of the Company.  [Alternate versions depending upon the Executive's
position.]

          "Change of Control" means the happening of any of the events described
in sub-sections (a) through (d) below, if immediately following such event,
Pharmacia Corporation ("Pharmacia") beneficially owns a majority of the then-
outstanding shares of common stock of the Company, and the happening of any of
the events described in subsections (e) through (h) below, if immediately
following such event, Pharmacia does not beneficially own a majority of the
then-outstanding shares of common stock of the Company:

          (a) the acquisition by any individual, entity or group (within the
     meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person")
     of beneficial ownership (within the meaning of Rule 13d-3 promulgated under
     the Exchange Act) of 20 percent or more of either (1) the then-outstanding
     shares of common stock of Pharmacia (the "Outstanding Pharmacia Common
     Stock") or (2) the combined voting power of the then-outstanding voting
     securities of Pharmacia entitled to vote generally in the election of
     directors (the "Outstanding Pharmacia Voting Securities"); provided, that
     for purposes of this subsection (a), the following acquisitions shall not
     constitute a Change of Control:  (A) any acquisition directly from
     Pharmacia; (B) any acquisition by the Company, Pharmacia, or a Subsidiary
     of either of them; (C) any acquisition by any employee benefit plan (or
     related trust) sponsored or maintained by the Company, Pharmacia, or a
     Subsidi-

                                      -13-
<PAGE>

     ary of either of them; or (D) any acquisition by any corporation pursuant
     to a transaction that complies with clauses (1), (2) and (3) of
     subsection (c) of this definition;

          (b) individuals who, as of the date of the initial public offering of
     the Shares, constitute the Board of Directors of Pharmacia (the "Incumbent
     Pharmacia Board"), cease for any reason to constitute at least a majority
     of the Pharmacia Board; provided, that any individual becoming a director
     subsequent to the date hereof whose election, or nomination for election by
     Pharmacia's stockholders, was approved by a vote of at least a majority of
     the directors then comprising the Incumbent Pharmacia Board shall be
     considered as though such individual were a member of the Incumbent
     Pharmacia Board, but excluding, for this purpose, any such individual whose
     initial assumption of office occurs as a result of an actual or threatened
     election contest with respect to the election or removal of directors or
     other actual or threatened solicitation of proxies or consents by or on
     behalf of a Person other than the Board of Directors of Pharmacia;

          (c) consummation of a reorganization, merger or consolidation or sale
     or other disposition of all or substantially all of the assets of Pharmacia
     or the acquisition of assets or stock of another corporation (a "Pharmacia
     Business Combination"), in each case, unless, following such Pharmacia
     Business Combination, (1) all or substantially all of the individuals and
     entities who were the beneficial owners, respectively, of the Outstanding
     Pharmacia Common Stock and Outstanding Pharmacia Voting Securities
     immediately prior to such Pharmacia Business Combination beneficially own,
     directly or indirectly, more than 60% of, respectively, the then-
     outstanding shares of common stock and the combined voting power of the
     then-outstanding voting securities entitled to vote generally in the
     election of directors, as the case may be, of the corporation resulting
     from such Pharmacia Business Combination (including without limitation a
     corporation that as a result of such transaction owns Pharmacia or all or
     substantially all of Pharmacia's assets either directly or through one or
     more subsidiaries) in substantially the same proportions as their
     ownership, immediately prior to such Pharmacia Business Combination of the
     Outstanding Pharmacia Common Stock and Outstanding Pharmacia Voting
     Securities, as the case may be, (2) no Person (excluding the Company,
     Pharmacia, a Subsidiary of either of them, any corporation resulting from
     such Pharmacia Business Combination or any employee benefit plan (or
     related trust) thereof) beneficially owns, directly or indirectly, 20% or
     more of, respectively, the then-outstanding shares of common stock of the
     corporation resulting from such Pharmacia Business Combination or the
     combined voting power of the then-outstanding voting securities of such
     corporation except to the extent that such ownership existed prior to the
     Pharmacia Business Combination and (3) at least a majority of the members
     of the board of directors of the corporation resulting from such Pharmacia
     Business Combination were members of the Incumbent Pharmacia Board at the
     time of the execution of the initial agreement, or of the action of the
     Board of Directors of Pharmacia, providing for such Pharmacia Business
     Combination;

          (d) approval by the stockholders of Pharmacia of a complete
     liquidation or dissolution of Pharmacia;

          (e) the acquisition by any Person of beneficial ownership (within the
     meaning of Rule 13d-3 promulgated under the Exchange Act) of either (1) the
     Requisite Common

                                      -14-
<PAGE>

     Percentage (as defined herein) of the then-outstanding shares of common
     stock of the Company (the "Outstanding Company Common Stock") or (2) the
     Requisite Voting Percentage (as defined herein) of the combined voting
     power of the then-outstanding voting securities of the Company entitled
     to vote generally in the election of directors (the "Outstanding Company
     Voting Securities"); provided, that for purposes of this subsection (e),
     the following acquisitions shall not constitute a Change of Control: (A)
     any acquisition directly from the Company; (B) any acquisition by the
     Company or a Subsidiary of the Company; (C) any acquisition by any
     employee benefit plan (or related trust) sponsored or maintained by the
     Company or a Subsidiary of the Company; or (D) any acquisition by any
     corporation pursuant to a transaction that complies with clauses (1), (2)
     and (3) of subsection (g) of this definition;

          (f) individuals who, as of the date of the initial public offering of
     the common stock of the Company, constitute the Board (the "Incumbent
     Board"), cease for any reason to constitute at least a majority of the
     Board; provided, that any individual becoming a director subsequent to the
     date hereof whose election, or nomination for election by the Company's
     stockholders, was approved by a vote of at least a majority of the
     directors then comprising the Incumbent Board shall be considered as though
     such individual were a member of the Incumbent Board, but excluding, for
     this purpose, any such individual whose initial assumption of office occurs
     as a result of an actual or threatened election contest with respect to the
     election or removal of directors or other actual or threatened solicitation
     of proxies or consents by or on behalf of a Person other than the Board;

          (g) consummation by the Company of a reorganization, merger or
     consolidation or sale or other disposition of all or substantially all of
     the assets of the Company or the acquisition of assets or stock of another
     corporation (a "Business Combination"), in each case, unless, following
     such Business Combination, (1) all or substantially all of the individuals
     and entities who were the beneficial owners, respectively, of the
     Outstanding Company Common Stock and Outstanding Company Voting Securities
     immediately prior to such Business Combination beneficially own, directly
     or indirectly, more than 60% of, respectively, the then-outstanding shares
     of common stock and the combined voting power of the then-outstanding
     voting securities entitled to vote generally in the election of directors,
     as the case may be, of the corporation resulting from such Business
     Combination (including without limitation a corporation that as a result of
     such transaction owns the Company or all or substantially all of the
     Company's assets either directly or through one or more subsidiaries) in
     substantially the same proportions as their ownership, immediately prior to
     such Business Combination of the Outstanding Company Common Stock and
     Outstanding Company Voting Securities, as the case may be, (2) no Person
     (excluding the Company, a Subsidiary of the Company, any corporation
     resulting from a Business Combination or any employee benefit plan (or
     related trust) thereof) beneficially owns, directly or indirectly, the
     Requisite Common Percentage of the then-outstanding shares of common stock
     of the corporation resulting from such Business Combination or the
     Requisite Voting Percentage of the combined voting power of the then-
     outstanding voting securities entitled to vote generally in the election of
     directors of such corporation, except to the extent that such ownership
     existed prior to the Business Combination and (3) at least a majority of
     the members of the board of directors of the corporation resulting from
     such Business Combination were members of the Incumbent

                                      -15-
<PAGE>

     Board at the time of the execution of the initial agreement, or of the
     action of the Board, providing for such Business Combination;

          (h) approval by the stockholders of the Company of a complete
     liquidation or dissolution of the Company.

          "Code" means the Internal Revenue Code of 1986, as amended.

          "Company" has the meaning set forth in the first paragraph of this
Agreement, and shall include any successor to the Company pursuant to Section
9(c).

          "Confidential Information" means (a) all technical and business
information of the Company and the Affiliated Companies, whether patentable or
not, which is of a confidential, trade secret and/or proprietary character and
that is either developed by the Executive (alone or with others) or to which the
Executive has had access during the Executive's employment, (b) all confidential
evaluations, and (c) the confidential use or non-use by the Company or any
Affiliated Company of technical or business information in the public domain.

          "Date of Termination" means (a) if the Executive's employment is
terminated by the Company for Cause or by the Executive for Good Reason, the
date of receipt of the Notice of Termination or any later date specified in the
Notice of Termination (but not later than 30 days after the giving of such
notice), as the case may be, (b) if the Executive's employment is terminated by
the Company other than for Cause or Disability, the date on which the Company
notifies the Executive of such termination, and (c) if the Executive's
employment is terminated by reason of death or Disability, the date on which the
Executive's termination becomes effective pursuant to Section 3(a).

          "Disability" means the absence of the Executive from the Executive's
duties with the Company on a full-time basis for 180 consecutive business days
as a result of incapacity due to mental or physical illness or injury that is
determined to be total and permanent by a physician selected by the Company or
its insurers and acceptable to the Executive or the Executive's legal
representative.

          "Employment Agreement" means any employment agreement between the
Company or any of the Affiliated Companies that may hereafter be entered into[,
including without limitation the Employment Agreement dated _____, 199_ between
the Executive and Pharmacia, Inc. (previously known as Monsanto Company)].

          "Executive" has the meaning set forth in the first paragraph of this
Agreement.

          "Excise Tax" means the excise tax imposed by Section 4999 of the Code,
together with any interest or penalties imposed with respect to such excise tax.

          "Good Reason" means (a) any change affecting the position of the
Executive (whether resulting from a transfer of the Executive to another
position, a change in the Company's business, or any other event) such that the
Executive no longer has a position substantially equivalent to the Executive's
position as contemplated by Section 2(a) for which the Executive is qualified by
education, training and experience, other than an isolated, insubstantial

                                      -16-
<PAGE>

and inadvertent change not taken in bad faith that is remedied by the Company
promptly after receipt of notice thereof given by the Executive; (b) any failure
by the Company to comply with any of the provisions of Section 2(b), other than
an isolated, insubstantial and inadvertent failure not occurring in bad faith
that is remedied by the Company promptly after receipt of notice thereof given
by the Executive; (c) the Company's requiring the Executive (1) to be based at
any office or location other than as provided in Section 2(a)(1)(B), (2) to be
based at a location other than the principal executive offices of the Company if
the Executive was employed at such location immediately preceding the date of
the Change of Control, or (3) to travel on Company business to a substantially
greater extent than required immediately prior to the date of the Change of
Control; provided, that if the Executive is on international assignment on the
date of the Change of Control, a relocation that results from the Executive's
being repatriated pursuant to the terms of his international assignment
agreement as in effect before the date of the Change of Control shall not be
"Good Reason"; (d) any purported termination by the Company of the Executive's
employment otherwise than as expressly permitted by this Agreement; or (e) any
failure by the Company to comply with and satisfy Section 9(c).

          "Gross-Up Payment" means an amount such that, after payment by the
Executive of all Taxes and Excise Tax imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.

          "Individual SERP" means individual agreements between the Executive
and the Company or the Affiliated Companies regarding the provisions of
supplemental retirement benefits such as (but not limited to) post-retirement
income and/or welfare benefits.

          "Notice of Termination" means a written notice of the termination of
the Executive's employment that (a) indicates the specific termination provision
in this Agreement relied upon, (b) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated, and
(c) specifies the Date of Termination (which shall be not earlier than the date
such notice is given and not later than 30 days thereafter).

          "Other Agreement" means any contract or agreement between the Company
or any of the Affiliated Companies and the Executive, excluding any Employment
Agreement and this Agreement and including without limitation any Individual
SERP [and the Phantom Share Agreement dated as of ______, 2000 among the
Executive, the Company and Pharmacia Corporation].

          "Other Benefits" means any amounts or benefits required to be paid or
provided or which the Executive is eligible to receive under any Other Plan or
Other Agreement.

          "Other Plan" means any plan, program, policy or practice provided by
the Company or any of the Affiliated Companies, excluding this Agreement, any
Employment Agreement and any Other Agreements.

          "Parachute Value" of a Payment means the present value as of the date
of the change of control for purposes of Section 280G of the Code of the portion
of such Payment that constitutes a "parachute payment" under Section 280G(b)(2)
of the Code, as determined by the

                                      -17-
<PAGE>

Accounting Firm for purposes of determining whether and to what extent the
Excise Tax will apply to such Payment.

          "Payment" shall mean any payment or distribution in the nature of
compensation (within the meaning of Section 280G(b)(2) of the Code) to or for
the benefit of the Executive, whether paid or payable pursuant to this Agreement
or otherwise.

          "Protected Period" has the meaning set forth in the first sentence of
Section 2.

          "Release" has the meaning set forth in Section 4(a).

          "Requisite Common Percentage" means, as of any given time, a
percentage equal to or greater than the higher of (A) 20 percent and (B) the
percentage of the then-outstanding shares of common stock of the Company then
beneficially owned by Pharmacia.

          "Requisite Voting Percentage" means, as of any given time, a
percentage equal to or greater than the higher of (A) 20 percent and (B) the
percentage of the voting power of the then-outstanding voting securities of the
Company entitled to vote generally in the election of directors then
beneficially owned by Pharmacia.

          "Retiree Welfare Benefits" means retiree benefits pursuant to any of
the Specified Welfare Benefits.

          "Retirement Plan" means the Monsanto Company Pension Plan and any
successor thereto, and any other qualified defined benefit retirement plans of
the Company and the Affiliated Companies, in each case to the extent the
Executive was entitled to participate therein immediately before the Date of
Termination.

          "Safe Harbor Amount" means 2.99 times the Executive's "base amount,"
within the meaning of Section 280G(b)(3) of the Code.

          "Savings Plans" means the Monsanto Company Savings and Investment Plan
and Savings and Investment Parity Plan and any successors thereto, and any other
qualified defined contribution plans of the Company and the Affiliated
Companies, in each case, to the extent the Executive was entitled to participate
therein immediately before the Date of Termination.

          "SERP" means the Monsanto Company ERISA Parity Pension Plan, the
Monsanto Company Supplemental Retirement Plan, and any successors thereto, and
any other "top hat," excess or supplemental defined benefit retirement plans of
the Company and the Affiliated Companies, in each case to the extent the
Executive is entitled to participate therein immediately before the Date of
Termination.

          "SERP Letter" means [insert reference to individual SERP letter, if
any, to which the Executive is a party].

          "Severance Annual Bonus Amount" means the higher of (a) the Average
Pre-Change-of-Control Annual Bonus and (b) the most recent Annual Bonus paid or
payable to the Executive pursuant to Section 2(b)(2) after the date of the
Change of Control, if any.

                                      -18-
<PAGE>

          "Severance Period" means the period of [three] [two] years beginning
on the Date of Termination.

          "Specified Welfare Benefits" means medical, prescription drug, dental,
vision, disability and life insurance benefits that are substantially comparable
to those that would have been provided to the Executive and the Executive's
family pursuant to Section 2(b)(4), if the Executive had remained employed by
the Company during the Severance Period.  Specified Welfare Benefits shall not
include the benefit of making pre-tax contributions to any cafeteria or flexible
spending plan.

          "Subsidiary" of any entity means any corporation, partnership, joint
venture, limited liability company, or other entity or enterprise of which the
first entity owns or controls, directly or indirectly, 50% or more of the
outstanding shares of stock normally entitled to vote for the election of
directors, or of comparable equity participation and voting power.

          "Taxes" means all federal, state, local and foreign income, excise,
social security and other taxes, other than the Excise Tax, and any associated
interest and penalties.

          "Term of this Agreement" means the period beginning on the date of the
initial public offering of the common stock of the Company and ending on June
30, 2001; provided, however, that beginning on June 30, 2001, and on each June
30 thereafter, the Term of this Agreement shall be automatically extended so as
to terminate on the first anniversary of such June 30, unless the Company shall
give notice to the Executive before the immediately preceding May 1 that the
Term of this Agreement shall not be so extended.

          "Underpayment" has the meaning set forth in Section 7(b).

                                      -19-
<PAGE>

          IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization from its Board of Directors, the Company
has caused these presents to be executed in its name on its behalf, all as of
the day and year first above written.

                                                -----------------------------
                                                     [name of Executive]

                                                MONSANTO COMPANY

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

                                      -20-
<PAGE>

                                   Exhibit A

                                Form of Release

THIS RELEASE MUST BE SIGNED AND RETURNED BY _________, 2000.  YOU MAY NOT MAKE
ANY CHANGES TO THIS FORM.

Monsanto Company, on its own behalf and on behalf of its subsidiaries,
affiliates, successors and predecessors (collectively, the "Company"), and I
agree as follows:

(a) Consideration:  I will receive the severance pay and benefits provided for
in Section 4(a) of the attached Employment Agreement in exchange for this
Release.

(b) Employment Termination:  My employment with the Company has ended and I
agree never to seek employment with the Company or its affiliates in the future.

(c) Claims Released:  I represent that I have not been the victim of age
discrimination or any other type of discrimination or wrongful act in connection
with my employment with the Company.  Consistent with this, I release the
Company, its current and former subsidiaries and affiliates, and their employees
or agents and related parties from all known or unknown claims, if any, that I
presently could have arising out of my employment with the Company or the
termination of my employment, except (1) Age Discrimination in Employment Act
claims, of which I have none, (2) claims for payments and benefits to which I am
entitled under the attached Change of Control Agreement and (3) claims for the
Other Benefits (as defined in the attached Employment Agreement) identified on
Schedule I hereto.

(d) Promise Not to File Claims:  I promise never to file any lawsuit based on a
released claim and I will withdraw with prejudice any such lawsuit that may
already be pending.  I promise never to seek any damages, remedies, or other
relief for myself personally (any right to which I hereby waive) by prosecuting
a charge with any administrative agency with respect to any claim released by
this Release.

READ THIS RELEASE, AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING
IT. YOU WILL HAVE __ DAYS IN WHICH TO CONSIDER IT.  THIS RELEASE INCLUDES A
RELEASE OF KNOWN AND UNKNOWN CLAIMS.  IF YOU WISH, YOU SHOULD CONSULT YOUR
ATTORNEY (AT YOUR OWN EXPENSE).

I have carefully read this Release, I fully understand what it means, and I am
entering into it voluntarily.

_______________                      _______________________________________
Date                                 Signature

                                     _______________________________________
                                     Printed Name

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