Document:

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                                                                   EXHIBIT 10.11

                           CHANGE OF CONTROL AGREEMENT

        This Change of Control Agreement (this "Agreement"), dated as of
August 16, 2000, is between Eden Bioscience Corporation, a Washington
corporation (the "Company"), and Zhongmin Wei (the "Employee").

        The Board of Directors of the Company (the "Board") has determined that
it is in the best interests of the Company and its stockholders to ensure that
the Company will have the continued dedication of the Employee, notwithstanding
the possibility, threat or occurrence of a Change of Control (as defined in
Appendix A to this Agreement, which is incorporated herein by this reference) of
the Company. The Board believes it is imperative to diminish the inevitable
distraction of the Employee arising from the personal uncertainties and risks
created by a pending or threatened Change of Control, to encourage the
Employee's full attention and dedication to the Company currently and in the
event of any threatened or pending Change of Control, to encourage the
Employee's willingness to serve a successor in an equivalent capacity, and to
provide the Employee with reasonable compensation and benefits arrangements in
the event that a Change of Control results in the Employee's loss of equivalent
employment.

        In order to accomplish these objectives, the Board has caused the
Company to enter into this Agreement.

1.      EMPLOYMENT

        1.1     CERTAIN DEFINITIONS

             (a) "Effective Date" shall mean the first date during the Change of
Control Period (as defined in Section 1.1(b)) on which a Change of Control
occurs.

             (b) "Change of Control Period" shall mean the period commencing on
the date of this Agreement and ending on the second anniversary of the date the
Company gives notice to the Employee that the Change of Control Period shall be
terminated.

        1.2     EMPLOYMENT PERIOD

        The Company hereby agrees to continue the Employee in its employ or in
the employ of its affiliated companies, and the Employee hereby agrees to remain
in the employ of the Company or its affiliated companies, in accordance with the
terms and provisions of this Agreement, for the period commencing on the
Effective Date and ending on the second anniversary of such date (the
"Employment Period").

        1.3     POSITION AND DUTIES

        During the Employment Period, the Employee's position, authority, duties
and responsibilities shall be at least reasonably commensurate in all material
respects with the

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most significant of those held, exercised and assigned at any time during the
90-day period immediately preceding the Effective Date.

        1.4     EMPLOYMENT AT WILL

        The Employee and the Company acknowledge that, except as may otherwise
be expressly provided under any other written employment agreement between the
Employee and the Company, the employment of the Employee by the Company or its
affiliated companies is "at will" and may be terminated by either the Employee
or the Company or its affiliated companies at any time. Moreover, if prior to
the Effective Date the Employee's employment with the Company or its affiliated
companies terminates, then the Employee shall have no further rights under this
Agreement.

        1.5     BOARD OF DIRECTORS

        The Employee is either currently or at some future time may become a
member of the Board. His continuation as such shall be subject to the will of
the Company's stockholders and the Board, as provided in the Company's by-laws
and certificate of incorporation. Removal of the Employee from, or nonelection
of the Employee to, the Board by the Company's stockholders or the Board, as
provided in the Company's by-laws and articles of incorporation, shall in no
event be deemed a breach of this Agreement by the Company.

2.      ATTENTION AND EFFORT

        During the Employment Period, and excluding any periods of vacation and
sick leave to which the Employee is entitled, the Employee will devote all of
his professional productive time, ability, attention and effort to the business
and affairs of the Company and the discharge of the responsibilities assigned to
him hereunder, and will use his best efforts to perform faithfully and
efficiently such responsibilities.

3.      COMPENSATION

        During the Employment Period, the Company agrees to pay or cause to be
paid to the Employee, and the Employee agrees to accept in exchange for the
services rendered hereunder by him, the following compensation:

        3.1     SALARY

        The Employee shall receive an annual base salary (the "Annual Base
Salary"), at least equal to the annual salary established by the Board or the
Compensation Committee of the Board (the "Compensation Committee") prior to the
Effective Date for the fiscal year in which the Effective Date occurs. The
Annual Base Salary shall be paid in substantially equal installments and at the
same intervals as the salaries of other officers of the Company are paid.

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        3.2     BONUS

        Employee may be entitled to receive, in addition to the Annual Base
Salary, an annual bonus in an amount to be determined by the Board of Directors
of the Company in its sole discretion.

        3.3     BENEFITS

        During the Employment Period, the Employee shall be entitled to
participate, subject to and in accordance with applicable eligibility
requirements, in such fringe benefit programs as shall be provided to other
employees of the Company and its affiliated companies from time to time during
the Employment Period by action of the Board (or any person or committee
appointed by the Board to determine fringe benefit programs and other
emoluments).

        3.4     EXPENSES

        During the Employment Period, the Employee shall be entitled to receive
prompt reimbursement for all reasonable employment expenses incurred by him in
accordance with the policies, practices and procedures of the Company and its
affiliated companies in effect for the employees of the Company and its
affiliated companies during the Employment Period or pursuant to an applicable
travel policy.

        3.5     STOCK OPTIONS

        Nothing contained in this Agreement shall affect the right of the
Employee to receive benefits or other shares under any option plan existing or
adopted by the Company. The Options shall be designated as incentive stock
options to the extent permitted under the Plan and applicable law.

4.      TERMINATION

        Employment of the Employee during the Employment Period may be
terminated as follows but, in any case, the nondisclosure and noncompetition
provisions set forth in Sections 7, 8, 9 and 10 of the Employment Agreement
shall survive the termination of this Agreement and the termination of the
Employee's employment with the Company:

4.1     BY THE COMPANY OR THE EMPLOYEE

        Upon giving Notice of Termination (as defined below), the Company may
terminate the employment of the Employee with or without Cause (as defined in
the Employment Agreement), and the Employee may terminate his employment for
Good Reason (as defined below) or for any reason, at any time during the
Employment Period.

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        4.2     AUTOMATIC TERMINATION

        This Agreement and the Employee's employment during the Employment
Period shall terminate automatically pursuant to Section 11.2 of the Employment
Agreement upon the death or total disability of the Employee. The Employee and
the Company hereby acknowledge that the Employee's presence and ability to
perform the duties specified in Section 1.3 hereof is of the essence of this
Agreement.

        4.3     NOTICE OF TERMINATION

        Any termination by the Company or by the Employee during the Employment
Period shall be communicated by Notice of Termination to the other party given
within 20 working days in accordance with Section 11.6 of the Employment
Agreement. The term "Notice of Termination" shall mean a written notice which
(a) indicates the specific termination provision in this Agreement relied upon
and (b) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Employee's
employment under the provision so indicated. The failure by the Employee or the
Company to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
the Employee or the Company hereunder or preclude the Employee or the Company
from asserting such fact or circumstance in enforcing the Employee's or the
Company's rights hereunder.

        4.4     DATE OF TERMINATION

        During the Employment Period, "Date of Termination" means (a) if the
Employee's employment is terminated by reason of death, at the end of the
calendar month in which the Employee's death occurs, (b) if the Employee's
employment is terminated by reason of total disability, immediately upon a
determination by the Company of the Employee's total disability, and (c) in all
other cases, five days after the date of personal delivery of or mailing of, as
applicable, the Notice of Termination. The Employee's employment and performance
of services will continue during such five-day period; provided, however, that
the Company may, upon notice to the Employee and without reducing the Employee's
compensation during such period, excuse the Employee from any or all of his
duties during such period.

5.      TERMINATION PAYMENTS

        In the event of termination of the Employee's employment during the
Employment Period, all compensation and benefits set forth in this Agreement
shall terminate except as specifically provided in this Section 5.

        5.1     TERMINATION BY THE COMPANY FOR OTHER THAN CAUSE OR BY THE
                EMPLOYEE FOR GOOD REASON

        If the Company terminates the Employee's employment other than for Cause
or the Employee terminates his employment for Good Reason prior to the end of
the Employment Period, the Employee shall be entitled to:

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             (a) receive payment of the following accrued obligations (the
"Accrued Obligations"):

                    (i) the Employee's Annual Base Salary through the Date of
        Termination to the extent not theretofore paid;

                    (ii) the product of (x) the Annual Bonus payable with
        respect to the fiscal year in which the Date of Termination occurs 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 compensation previously deferred by the Employee
        (together with accrued interest or earnings thereon, if any) as such
        deferred compensation becomes payable under the deferral plan, and any
        accrued vacation pay, in each case to the extent not theretofore paid;
        and

             (b) an amount as severance pay equal to the sum of two times the
Employee's Annual Base Salary plus an amount equal to an average of the
Employee's prior three Annual Bonuses payable in the fiscal years preceding the
Date of Termination.

        5.2     ACCELERATION OF STOCK OPTIONS

        In the event of a Change of Control, as defined in Appendix A of this
Agreement, all of Employee's stock options issued pursuant to the Eden
Bioscience Corporation 1995 Combined Incentive and Nonqualified Stock Option
Plan (the "Plan") will be treated in accordance with this Section 5.2. In the
event the option is assumed, converted or replaced in any transaction involving
a merger, consolidation, acquisition of property or stock, separation or
reorganization ("a Corporate Transaction"), the option will fully accelerate in
vesting and exercisability if Employee's employment or service relationship with
the Company subsequently terminates within three years after a Corporate
Transaction, unless Employee's employment or service relationship is terminated
for Cause or by Employee voluntarily without "Good Reason," as defined in
Section 5.6. However, acceleration will not occur if the Corporate Transaction
is a related party transaction or the acceleration would, in the opinion of the
Company's outside accountants, prevent the use of "pooling of interest"
accounting in a transaction for which it is otherwise available. Nothing
contained in this Agreement shall affect the right of the Employee to receive
benefits or other shares under any option plan existing or adopted by the
Company. The Options shall be designated as incentive stock options to the
extent permitted under the Plan and applicable law.

        5.3     TERMINATION FOR CAUSE OR OTHER THAN FOR GOOD REASON

        If the Employee's employment shall be terminated by the Company for
Cause as defined in the Employment Agreement or by the Employee for other than
Good Reason during the Employment Period, this Agreement shall terminate without
further obligation to the Employee other than the obligation to pay to the
Employee his Annual Base Salary through the Date of Termination plus the amount
of any compensation previously deferred by

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the Employee (as such deferred compensation becomes payable under the deferral
plan), in each case to the extent theretofore unpaid.

        5.4     TERMINATION BECAUSE OF DEATH OR TOTAL DISABILITY

        If the Employee's employment is terminated by reason of the Employee's
death or total disability during the Employment Period, this Agreement shall
terminate automatically without further obligations to the Employee or his legal
representatives under this Agreement, other than for payment of Accrued
Obligations (which shall be paid to the Employee's estate or beneficiary, as
applicable in the case of the Employee's death).

        5.5     PAYMENT SCHEDULE

        All payments under Section 5.1(a) and (b) shall be paid to the Employee
in a lump sum in cash within 30 days of the Date of Termination.

        5.6     GOOD REASON

        For purposes of this Agreement, "Good Reason" means any of the following
events or conditions and the failure to cure such event or condition within 20
days after receipt of written notice from Employee:

             (a) The assignment to the Employee of any duties inconsistent in
any material respect with the Employee's position, authority, duties or
responsibilities as contemplated by Section 1.3 hereof or any other action by
the Company which results in a diminution in such position, authority, duties or
responsibilities, excluding for this purpose an isolated and inadvertent action
not taken in bad faith and which is remedied by the Company promptly after
receipt of notice thereof given by the Employee, and further excluding
reasonable changes in particular duties and reporting responsibilities which may
result from the Company becoming part of a larger business organization at some
future time provided that such changes in the aggregate do not result in a
material alteration in the Employee's position, authority, duties or
responsibilities;

             (b) Any failure by the Company to comply with any of the provisions
of Section 3 hereof, other than an isolated and inadvertent failure not
occurring in bad faith and which is remedied by the Company promptly after
receipt of notice thereof given by the Employee;

             (c) The departure of the Company's President and Chief Executive
Officer with or without Cause or for Good Reason; or

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        5.7     CAUSE

        Wherever reference is made in this Agreement to termination being with
or without Cause, "Cause" shall include, without limitation, the occurrence of
one or more of the following events:

             (a) Failure or refusal to carry out the lawful duties of Employee
        described in Section 1.3 hereof or any directions of the Board of
        Directors of the Company, which directions are reasonably consistent
        with the duties herein set forth to be performed by Employee;

             (b) Violation by Employee of a state or federal criminal law
        involving the commission of a crime against the Company or a felony;

             (c) Current use by Employee of illegal substances; deception,
        fraud, misrepresentation or dishonesty by Employee; any incident
        materially compromising Employee's reputation or ability to represent
        the Company with the public; any act or omission by Employee which
        substantially impairs the Company's business, good will or reputation;
        or any other misconduct; or

             (d) Any other material violation of any provision of this
        Agreement.

        5.8     EXCESS PARACHUTE LIMITATION

        If either the Company or the Employee receives confirmation from the
Company's independent tax counsel or its certified public accounting firm, or
such other accounting firm retained as independent certified public accountants
for the Company (the "Tax Advisor"), that any payment by the Company to the
Employee under this Agreement or otherwise would be considered to be an "excess
parachute payment" within the meaning of Section 280G of the Internal Revenue
Code of 1986, as amended, or any successor statute then in effect (the "Code"),
then the aggregate payments by the Company pursuant to this Agreement shall be
reduced to the highest amount that may be paid to the Employee by the Company
under this Agreement without having any portion of any amount payable to the
Employee by the Company or a related entity under this Agreement or otherwise
treated as such an "excess parachute payment", and, if permitted by applicable
law and without adverse tax consequence, such reduction shall be made to the
last payment due hereunder. Any payments made by the Company to the Employee
under this Agreement which are later confirmed by the Tax Advisor to be "excess
parachute payments" shall be considered by all parties to have been a loan by
the Company to the Employee, which loan shall be repaid by the Employee upon
demand together with interest calculated at the lowest interest rate authorized
for such loans under the Code without a requirement that further interest be
imputed.

6.      NOTICE AND CURE OF BREACH

        Whenever a breach of this Agreement by either party is relied upon as
justification for any action taken by the other party pursuant to any provision
of this Agreement, other than

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pursuant to the definition of "Cause" set forth in Section 5.7 hereof, before
such action is taken, the party asserting the breach of this Agreement shall
give the other party at least twenty (20) working days' prior written notice of
the existence and the nature of such breach before taking further action
hereunder and shall give the party purportedly in breach of this Agreement the
opportunity to correct such breach during the 20-day period.

7.      FORM OF NOTICE

        All notices given hereunder shall be given in writing, shall
specifically refer to this Agreement and shall be personally delivered or sent
by telecopy or other electronic facsimile transmission or by registered or
certified mail, return receipt requested, at the address set forth below or at
such other address as may hereafter be designated by notice given in compliance
with the terms hereof:

        If to Employee:         Zhongmin Wei
                                8230 NE 125th Court
                                Kirkland, WA  98034

        If to the Company:      Eden Bioscience Corporation
                                11816 North Creek Parkway North
                                Bothell, WA 98011

        Copy to:                James R. Lisbakken
                                Perkins Coie
                                1201 Third Avenue, 40th Floor
                                Seattle, WA 98101-3099

If notice is mailed, such notice shall be effective upon mailing, or if notice
is personally delivered or sent by telecopy or other electronic facsimile
transmission, it shall be effective upon receipt.

8.      NONCOMPETITION

        Employee agrees that during the Employment Period and for a period of
eighteen (18) months thereafter, he will not, except in furtherance of his
employment with the Company, without the prior written consent of the Company,
either directly or indirectly operate, control, advise, be engaged by, perform
any consulting services for, invest in (other than less than one percent of the
outstanding stock in a publicly held corporation which is listed on the NASDAQ
national market or traded over-the-counter or on a recognized securities
exchange) or otherwise become associated in any capacity with, any business,
company, partnership, organization, proprietorship, or other entity who or which
manufactures products or traits which use organisms or other byproducts or which
is developing products or traits, to (i) treat soil or foliar diseases of plants
or (ii) enhance growth or insect tolerance of plants (the "Company Products") in
competition with the Company in those geographical areas in which the Company
conducts or has conducted such business, or intends to conduct business,
consistent with the Company's current, written business plans, during Employee's

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employment. If employee is released from strict compliance with his non-compete
obligations in order to return to an "academic" position, he will be required to
forego working on any project that is either funded by or for the benefit of a
for-profit company.

9.      NONDISCLOSURE

        Employee agrees at all times to hold as secret and confidential (unless
disclosure is required by the Company or would be in furtherance of Employee's
employment with the Company or is required pursuant to court order, subpoena in
a governmental proceeding, arbitration or pursuant to other process or
requirement of law) any and all knowledge, information, developments,
manufacturing and trade secrets, know-how and confidences of the Company or its
business of which he has knowledge during the Employment Period, to the extent
such matters have not previously been made public, are not thereafter made
public, or do not otherwise become available to Employee from a third party not,
to Employee's best knowledge, bound by any confidentiality agreement with the
Company ("Confidential Information"). The phrase "made public" as used in this
Agreement shall apply to matters within the domain of (a) the general public or
(b) the Company's industry. Employee agrees not to use such knowledge for his
own benefit or for the benefit of others or, except as provided above, disclose
any of such Confidential Information without the prior written consent of the
Company, which consent shall make express reference to this Agreement.

10.     NONINTERFERENCE

        Employee agrees that during the Employment Period and for a period of
eighteen (18) months thereafter, he will not, except in furtherance of his
employment with the Company or as a part of his duties as an officer of the
Company, without the prior written consent of the Company, directly or
indirectly solicit, induce or attempt to solicit or induce any employee, agent
or other representative or associate of the Company to terminate its
relationship with the Company or in any way interfere with such a relationship
or a relationship between the Company and any of its suppliers or distributors.

11.     DISCLOSURE OF PROPRIETARY INTELLECTUAL PROPERTY

        11.1 Employee agrees that he will promptly disclose to the Company any
and all improvements, discoveries, ideas, developments or inventions composing
proprietary intellectual property which may be material to the operations and
business of the Company (the "Improvements") which Improvements are made or
conceived by Employee, acting alone or in conjunction with others, (a) during
the Employment Period, or (b) to the extent the Improvements are specifically
and directly related to the Company Products within three (3) years after the
Employment Period, if such Improvement results from or was suggested by such
employment. Employee shall not disclose any such Improvement to any person,
except the Company and shall use all reasonable efforts to provide the Company
written disclosure of such Improvements. Each such Improvement shall be the sole
and exclusive property of and is hereby assigned to the Company. Employee agrees
that, at the request of the Company, Employee will execute such applications,
statements, assignments or other documents, furnish such information and data
and take all such other action (including

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without limitation the giving of testimony) as the Company may from time to time
reasonably request in order to obtain for the Company a registration or patent
in the United States or any foreign country covering or pertaining to any such
Improvement. The Company and Employee hereby acknowledge and agree that the
obligations set forth in this Section 10 do not apply to an Improvement for
which no equipment, supplies, facility, copyright, patent or patent application,
registration, information, or other intellectual property or trade secret
information of the Company was used and which was developed entirely on
Employee's own time, unless (a) the Improvement relates (i) directly to the
business of the Company, or (ii) to the Company's actual or demonstrably
anticipated research or development, or (b) the Improvement results from any
work performed by Employee for the Company.

        11.2 Employee agrees to execute and be bound by the terms of the
Company's Employee Confidentiality and Disclosure Agreement.

12.     REPRESENTATIONS, WARRANTIES AND OTHER CONDITIONS

        In order to induce the Company to enter into this Agreement, the
Employee represents and warrants to the Company as follows:

        12.1    HEALTH

        The Employee is in good health and knows of no physical or mental
disability which, with or without any accommodation which may be required by law
and which places no undue burden on the Company, would prevent him from
fulfilling his obligations hereunder. The Employee agrees, if the Company
requests, to submit to periodic medical examinations by a physician or
physicians designated by, paid for and arranged by the Company. The Employee
agrees that the examination's medical report shall be provided to the Company.

        12.2    NO VIOLATION OF OTHER AGREEMENTS

        The Employee represents that neither the execution nor the performance
of this Agreement by the Employee will violate or conflict in any way with any
other agreement by which the Employee may be bound.

        12.3    REAFFIRMATION OF OBLIGATIONS

        The Employee hereby reaffirms the Employee Confidentiality and
Disclosure Agreement previously executed by Employee.

13.     INTEGRATION

        This Agreement constitutes the entire agreement between Employee and the
Company relating in any way to the employment of Employee by the Company, and
supersedes all prior discussions, understandings and agreements between them
with respect thereto.

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14.     INVALID PROVISION

        The invalidity or unenforceability of any particular provision of this
Agreement shall not affect any other provision hereof, and the Agreement shall
be construed in all other respect as if such invalid or unenforceable provisions
were omitted. However, if any court should determine that the duration or any
other feature of any restriction contained in Section 8 of this Agreement is
unenforceable, it is the intention of the parties that the provisions of such
Section as set forth herein shall not thereby be terminated, but shall be deemed
amended to the extent required to render them valid and enforceable.

15.     ATTORNEYS' FEES

        In the event of a dispute arising out of the interpretation or
enforcement of this Agreement, the prevailing party shall be entitled to recover
reasonable attorneys' fees and costs.

16.     BINDING EFFECT

        This Agreement shall be binding upon and shall inure to the benefit of
the respective parties hereto, their heirs, executors, successors and assigns.

17.     GOVERNING LAW

        This Agreement and the parties' performance hereunder shall be governed
by and interpreted under the laws of the State of Washington. Employee agrees to
submit to the jurisdiction of the courts of the State of Washington, and that
venue for any action arising out of this Agreement or the parties' performance
hereunder may be laid in King County, Washington.

18.     AMENDMENTS

        Any term of this Agreement may be amended and the observance of any term
may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the parties.

19.     ASSIGNMENT

        This Agreement is personal to Employee and shall not be assignable by
Employee. The Company may assign its rights hereunder to (a) any corporation
resulting from any merger, consolidation or other reorganization to which the
Company is a party or (b) any corporation, partnership, association or other
person to which the Company may transfer all or substantially all of the assets
and business of the Company existing at such time. All of the terms and
provisions of this Agreement shall be binding upon and shall inure to the
benefit of and be enforceable by the parties hereto and their respective
successors and permitted assigns.

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20.     CONSENTS AND WAIVERS

        No consent or waiver, express or implied, by any party hereto to or of
any breach or default by any other party in the performance by the others of
their obligations hereunder shall be valid unless in writing, and no such
consent or waiver shall be deemed or construed to be a consent or waiver to or
of any other breach or default in the performance by such other party of the
same or any other obligations of such party hereunder. Failure on the part of
any party to complain of any act or failure to act of any other party or to
declare the other parties in default, irrespective of how long such failure
continues, shall not constitute a waiver by such party of its rights hereunder.
The granting of any consent or approval in any one instance by or on behalf of
the Company shall not be construed to waive or limit the need for such consent
or approval in any other subsequent instance.

21.     CONSTRUCTION

        This Agreement has been submitted to the scrutiny of, and has been
negotiated by, all parties hereto and their counsel, and shall be given a fair
and reasonable interpretation in accordance with the terms hereof, without
consideration or weight being given to its having been drafted by any party
hereto or its counsel.

22.     HEADINGS

        Titles or captions of sections contained in this Agreement are inserted
only as a matter of convenience and for reference, and in no way define, limit,
extend or describe the scope of this Agreement or the intent of any provisions
hereof.

23.     REMEDIES IN EQUITY

        The rights and remedies of the parties hereunder shall not be mutually
exclusive, i.e., the exercise of one or more of the provisions hereof shall not
preclude the exercise of any other provisions hereof. The parties confirm that
damages at law will be an inadequate remedy for a breach or threatened breach of
this Agreement and agree that their respective rights and obligations hereunder
shall be enforceable by specific performance, injunction or other equitable
remedy as well as at law or otherwise.

24.     ARBITRATION

        Any controversies or claims arising out of or relating to this Agreement
or to employee's employment with the company shall be fully and finally settled
by arbitration in the City of Seattle, Washington under Washington law and in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association then in effect (the AAA Rules),

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conducted by one arbitrator either mutually agreed upon by the company and the
employee or chosen in accordance with the AAA rules.

        IN WITNESS WHEREOF, the parties have executed and entered into this
Agreement on the date set forth above.

                                       EMPLOYEE
                                       /s/ Zhongmin Wei
                                       -----------------------------------------

                                       EDEN BIOSCIENCE CORPORATION

                                       By /s/ Jerry L. Butler
                                         ---------------------------------------

                                          Its President
                                             -----------------------------------

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                                  APPENDIX A TO

                           CHANGE OF CONTROL AGREEMENT

        For purposes of this Agreement, a "Change of Control" shall mean:

        (a) A "Board Change" which, for purposes of this Agreement, shall have
occurred if a majority (excluding vacant seats w) of the seats on the Company's
Board are occupied by individuals who were neither (i) nominated by a majority
of the Incumbent Directors nor (ii) appointed by directors so nominated. An
"Incumbent Director" is a member of the Board who has been either (i) nominated
by a majority of the directors of the Company then in office or (ii) appointed
by directors so nominated, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of Regulation
14A promulgated under the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person (as hereinafter defined) other than the
Board; or

        (b) 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 (i) 20% or more of either (A) the then outstanding shares of
Common Stock of the Company (the "Outstanding Company Common Stock") or (B) 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"), in the case of either (A) or (B) of this clause
(i), which acquisition is not approved in advance by a majority of the Incumbent
Directors, or (ii) 33% or more of either (A) the Outstanding Company Common
Stock or (B) the Outstanding Company Voting Securities, in the case of either
(A) or (B) of this clause (ii), which acquisition is approved in advance by a
majority of the Incumbent Directors; provided, however, that the following
acquisitions shall not constitute a Change of Control: (w) any acquisition
directly from the Company or in connection with an initial public offering of
the Company pursuant to a registration statement filed with and declared
effective by the Securities and Exchange Commission, (x) any acquisition by the
Company, (y) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the
Company or (z) any acquisition by any corporation pursuant to a reorganization,
merger or consolidation, if, following such reorganization, merger or
consolidation, the conditions described in clauses (i), (ii) and (iii) of
subsection (c) of this Appendix A are satisfied; or

        (c) Consummation of a reorganization, merger or consolidation approved
by the shareholders of the Company, in each case, unless, immediately following
such reorganization, merger or consolidation, (i) more than 60% of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such reorganization, merger or consolidation and the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then beneficially
owned, directly or indirectly, by all or substantially all the individuals and

<PAGE>   15

entities who were the beneficial owners, respectively, of the Outstanding
Company Common Stock and the Outstanding Company Voting Securities immediately
prior to such reorganization, merger or consolidation in substantially the same
proportion as their ownership immediately prior to such reorganization, merger
or consolidation of the Outstanding Company Common Stock and the Outstanding
Company Voting Securities, as the case may be, (ii) no Person (excluding the
Company, any employee benefit plan (or related trust) of the Company or such
corporation resulting from such reorganization, merger or consolidation and any
Person beneficially owning, immediately prior to such reorganization, merger or
consolidation, directly or indirectly, 33% or more of the Outstanding Company
Common Stock or the Outstanding Voting Securities, as the case may be)
beneficially owns, directly or indirectly, 33% or more of, respectively, the
then outstanding shares of common stock of the corporation resulting from such
reorganization, merger or consolidation or the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors, and (iii) at least a majority of the members of the
board of directors of the corporation resulting from such reorganization, merger
or consolidation were the Incumbent Directors at the time of the execution of
the initial agreement providing for such reorganization, merger or
consolidation; or

        (d) Consummation of the following events approved by the shareholders of
the Company (i) a complete liquidation or dissolution of the Company or (ii) the
sale or other disposition of all or substantially all the assets of the Company,
other than to a corporation with respect to which immediately following such
sale or other disposition, (A) more than 60% of, respectively, the then
outstanding shares of common stock of such corporation and the combined voting
power of the then outstanding voting securities of such corporation entitled to
vote generally in the election of directors is then beneficially owned, directly
or indirectly, by all or substantially all the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Company Common Stock and
the Outstanding Company Voting Securities immediately prior to such sale or
other disposition in substantially the same proportion as their ownership,
immediately prior to such sale or other disposition, of the Outstanding Company
Common Stock and the Outstanding Company Voting Securities, as the case may be,
(B) no Person (excluding the Company, any employee benefit plan (or related
trust) of the Company or such corporation and any Person beneficially owning,
immediately prior to such sale or other disposition, directly or indirectly, 33%
or more of the Outstanding Company Common Stock or the Outstanding Company
Voting Securities, as the case may be) beneficially owns, directly or
indirectly, 33% or more of, respectively, the then outstanding shares of common
stock of such corporation and the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the election
of directors and (C) at least a majority of the members of the board of
directors of such corporation were approved by a majority of the Incumbent
Directors at the time of the execution of the initial agreement or action of the
Board providing for such sale or other disposition of assets of the Company.

        Notwithstanding the foregoing, there shall not be a Change of Control
if, in advance of such event, the Employee agrees in writing that such event
shall not constitute a Change of Control.

                                      -2-<PAGE>   1
                                                                   EXHIBIT 10.12

                                CREDIT AGREEMENT

                                 BY AND BETWEEN

                           EDEN BIOSCIENCE CORPORATION

                                       AND

                              STEPHENS GROUP, INC.

                           DATED AS OF AUGUST 16, 2000

<PAGE>   2
                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT, dated as of August 16, 2000, is made and entered
into by and between STEPHENS GROUP, INC. ("Lender") and EDEN BIOSCIENCE
CORPORATION ("Borrower"). Words and phrases with initial capitalized letters
have the meanings assigned in Article I.

                                R E C I T A L S:

         A. Borrower has requested Lender to extend to Borrower a multiple
advance credit facility.

         B. Lender is ready, willing and able to extend such credit facility to
Borrower on the terms and conditions set forth in this Agreement.

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

ARTICLE I. DEFINITIONS

         As used herein, the following terms have the meanings set forth below:

         "Agreement" means this credit agreement and includes all amendments to
this Agreement.

         "Applicable Law" means all applicable provisions and requirements of
all (a) constitutions, statutes, ordinances, rules, regulations, standards,
orders and directives of any governmental bodies, and (b) orders, decisions,
decrees, judgments, injunctions and writs of all courts and arbitrators, whether
such Applicable Laws presently exist, or are modified, promulgated or
implemented after the date hereof.

         "Borrower" has the meaning set forth in the introductory paragraph of
this Agreement, and its successors.

         "Borrowing Notice" has the meaning set forth in Section 2.3.

         "Business Day" means any day except a Saturday, Sunday or other day on
which national banks in the state of Washington are authorized or required by
law to close.

         "Commitment Period" means the period commencing on the date of this
Agreement and ending on December 31, 2000.

                                                                          PAGE 1
<PAGE>   3
         "Default" means any condition or event that constitutes an Event of
Default or with the giving of notice or lapse of time or both would, unless
cured or waived, become an Event of Default.

         "Event of Default" has the meaning set forth in Section 7.1.

         "Lender" has the meaning set forth in the introductory paragraph of
this Agreement, and its successors.

         "Loan" has the meaning set forth in Section 2.1 and includes all
renewals of and amendments to the Loan.

         "Note" has the meaning set forth in Section 2.6 and includes all
renewals and replacements of and amendments to the Note.

         "Person" means any individual, partnership, joint venture, firm,
corporation, limited liability company, limited liability partnership,
association, trust or other enterprise or any governmental body.

         "Prime Rate" means a rate of interest adjusted as of the first day of
each calendar month and as determined by reference to the Wall Street Journal on
the first Business Day of each such month; provided that in the event the Prime
Rate cannot be determined by reference to the Wall Street Journal, Lender shall
determine the Prime Rate by reference to other sources as reasonably designated
by Lender and adjusted on the first day of each calendar month.

ARTICLE II. THE LOAN

         2.1 LOAN COMMITMENT

         Subject to and upon the terms and conditions set forth herein and in
reliance upon the representations, warranties and covenants of Borrower
contained herein or made pursuant hereto, Lender will make advances to Borrower
from time to time during the Commitment Period, but such advances shall not
exceed, in the aggregate principal amount at any one time outstanding,
$10,000,000 (the "Loan"). Borrower may request and Lender agrees to make
multiple advances under the Loan during the Commitment Period; provided that (a)
the minimum amount of each advance shall be in $1,000,000, and (b) the aggregate
amount of advances shall not exceed $10,000,000. The Loan does not constitute a
revolving credit facility.

         2.2 USE OF PROCEEDS

         The proceeds of the Loan shall be used by Borrower for general business
purposes.

                                                                          PAGE 2
<PAGE>   4
         2.3 ADVANCES

         Lender hereby commits to make advances within three Business Day of the
date of the receipt by Lender of a written request therefor in the form attached
hereto as Exhibit A ("Borrowing Notice") from the president, chief financial
officer or controller of Borrower, each of whom is authorized to request
advances until written notice by Borrower of the revocation of such authority is
received by Lender. Lender shall make all advances by federal wire transfer of
funds to the following account of Borrower unless otherwise directed in writing
by the president of Borrower:

                           Account Name:  Eden Bioscience Corporation
                           Name of Bank:  Bank of America
                           ABA No.:  125000024
                           Account No.:  70336706

         2.4 INTEREST

                  (a) The outstanding principal balance of the Loan shall bear
interest at the Prime Rate plus 2 percentage point per annum.

                  (b) Upon the occurrence and during the continuance of any
Event of Default, Lender may, at its option by written notice to Borrower, raise
the interest rate charged on the Loan to a rate of up to the Prime Rate plus 4
percent per annum from the date of the occurrence of the Event of Default until
the Event of Default is cured or waived by Lender or, absent cure or waiver,
until the Loan is repaid in full.

                  (c) All computations of interest shall be based on a
365/366-day year for the actual number of days elapsed.

                  (d) In the event that Borrower fails to pay interest on the
Loan when due under the terms of this Agreement, such past due interest shall
bear interest at the interest rate applicable to the Loan.

                  (e) Notwithstanding any provision contained herein, the total
liability of Borrower for payment of interest pursuant hereto shall not exceed
the maximum amount of interest permitted by Applicable Law to be charged,
collected or received from Borrower; and if any payments by Borrower include
interest in excess of that maximum amount, Lender shall apply the excess first
to reduce the unpaid interest on and principal of the Loan, and any excess shall
be returned to Borrower.

                                                                          PAGE 3
<PAGE>   5
         2.5 REPAYMENT

                  (a) Commencing on the first day of the first month following
the initial advance under the Loan and on the first day of each month
thereafter, Borrower shall pay Lender an amount equal to all accrued interest on
the Loan.

                  (b) Borrower shall pay Lender all outstanding principal,
accrued interest and other charges with respect to the Loan on the earlier of
(i) December 31, 2001, or (ii) the date that Borrower receives any cash proceeds
from the issuance of any equity securities after the date of this Agreement.

                  (c) All sums payable to Lender pursuant to this Agreement
shall be paid directly to Lender in immediately available funds and in the
currency of the United States of America. Whenever any payment to be made
hereunder becomes due and payable on a day that is not a Business Day, such
payment may be made on the next succeeding Business Day.

         2.6 PROMISSORY NOTE

         The obligations of Borrower under the Loan shall be further evidenced
by Borrower's execution and delivery of a promissory note in the form attached
hereto as Exhibit B (the "Note").

         2.7 WBW CREDIT FACILITY

                  (a) The parties acknowledge that Borrower and WBW Trust Number
One have entered into a credit agreement of even date herewith, a copy of which
is attached hereto as Exhibit C, pursuant to which WBW Trust Number One has
agreed to extend a $5,000,000 credit facility to Borrower (the "WBW Credit
Facility"). Borrower agrees that concurrently with requesting any advance under
the Loan pursuant to the terms of this Agreement, Borrower shall concurrently
request an advance under the WBW Credit Facility in an amount equal to 50
percent of the amount of the advance requested under this Agreement. However,
WBW Trust Number One's making an advance under the WBW Credit Facility shall not
constitute a condition to Lender's commitment to make advances under the Loan.

                  (b) Borrower agrees that concurrently with making each
principal payment under the WBW Credit Facility, Borrower shall concurrently
make a principal payment on the Loan such that the amount of such principal
payments to Lender and WBW Trust Number One shall be pro rata based upon the
outstanding principal balance of the Loan and the WBW Credit Facility
immediately prior to such principal reduction payments.

         2.8 LOAN FEE

         Concurrently with the execution of this agreement, Borrower shall pay
Lender a nonrefundable fee for the Loan in the amount of $200,000.

                                                                          PAGE 4
<PAGE>   6
         2.9 ISSUANCE OF WARRANT

         Concurrently with the execution of this agreement, Borrower shall
execute and deliver to Lender a warrant in the form attached hereto as Exhibit
D.

ARTICLE III. CONDITIONS PRECEDENT

         3.1 INITIAL ADVANCE

         Lender shall not be required to make the initial advance under the Loan
unless or until the following conditions have been fulfilled:

                  (a) Lender shall have received this Agreement and the Note,
duly executed and delivered by Borrower;

                  (b) No Default or Event of Default hereunder shall exist, and
after having given effect to the requested advance, no Default or Event of
Default shall exist;

                  (c) Lender shall have received a certified resolution of the
board of directors of Borrower and incumbency certificate in the form attached
hereto as Exhibit E;

                  (d) There shall not have occurred any material adverse change
in the financial condition or business prospects of Borrower after December 31,
1999; and

                  (e) Lender shall have received an opinion letter from Perkins
Coie LLP in the form attached hereto as Exhibit F.

         3.2 SUBSEQUENT ADVANCES

         Lender shall not be required to make any advances under the Loan after
the initial advance unless or until the following conditions have been
fulfilled:

                  (a) No Default or Event of Default hereunder shall exist, and
after having given effect to the requested advance, no Default or Event of
Default shall exist; and

                  (b) There shall not have occurred any material adverse change
in the financial condition or business prospects of Borrower after December 31,
1999.

ARTICLE IV. AFFIRMATIVE COVENANTS

         Borrower hereby covenants and agrees that so long as this Agreement is
in effect, and until the Loan, together with interest thereon, and all other
obligations incurred hereunder are paid or satisfied in full, Borrower shall:

                                                                          PAGE 5
<PAGE>   7
         4.1 FINANCIAL DATA

         Keep its books of account in accordance with generally accepted
accounting principles, consistently applied, and furnish to Lender:

                  (a) As soon as practicable and in any event within 45 days
after the close of each fiscal quarter of Borrower, unaudited financial
statements of Borrower for each such quarter, all in reasonable detail and
certified by Borrower to be true and correct: balance sheet, statement of income
and statement of cash flows;

                  (b) As soon as practicable and in any event within 120 days
after the close of each fiscal year of Borrower, audited financial statements of
Borrower for each such year, all in reasonable detail: balance sheet, statement
of income and statement of cash flows; and

                  (c) With reasonable promptness, such other information
regarding the business, operations and financial condition of Borrower as Lender
may from time to time reasonably request.

         4.2 EXISTENCE AND QUALIFICATION

         Maintain and preserve Borrower's existence under the Applicable Laws of
Borrower's state of organization and Borrower's qualification to do business in
all states where the failure to maintain such qualification would be reasonably
likely to have an adverse affect on Borrower.

ARTICLE V. NEGATIVE COVENANTS

         Borrower hereby covenants and agrees that so long as this Agreement is
in effect, and until the Loan, together with interest thereon, and all other
obligations incurred hereunder are paid or satisfied in full, Borrower shall
not:

         5.1 DIVIDENDS

         Declare or pay any cash distributions or dividends or return any
capital to any of Borrower's shareholders; authorize or make any distribution,
payment or delivery of property or cash to any of Borrower's shareholders;
redeem, retire, purchase or otherwise acquire, directly or indirectly, for
consideration, any shares or other interests of Borrower now or hereafter
outstanding; or set aside any funds for any of the foregoing purposes.

         5.2 ADDITIONAL INDEBTEDNESS

         After the date of this Agreement, create, incur or assume indebtedness
for money borrowed or capital leases except (a) indebtedness under the Loan, (b)
indebtedness under the WBW Credit Facility, and (c) additional indebtedness for
borrowed money and capital leases not to exceed an aggregate amount of $500,000
outstanding at any time.

                                                                          PAGE 6
<PAGE>   8
ARTICLE VI. REPRESENTATIONS AND WARRANTIES

         In order to induce Lender to enter into this Agreement and to make the
Loan as herein provided, Borrower hereby represents and warrants that Borrower
is a corporation, duly organized, validly existing and in good standing under
the Applicable Laws of its state of organization and has the power and authority
to execute, deliver and carry out the terms and provisions of this Agreement.

ARTICLE VII. EVENTS OF DEFAULT; REMEDIES

         7.1 EVENTS OF DEFAULT

         "Event of Default," wherever used herein, means any one of the
following events (whatever the reason for the Event of Default, whether it shall
relate to one or more of the parties hereto, and whether it shall be voluntary
or involuntary or be pursuant to or affected by operation of Applicable Law):

                  (a) If Borrower fails to pay the principal of the Loan when
due or interest on the Loan within five days after written notice to Borrower
from Lender of such failure to pay; or

                  (b) If any representation or warranty made by Borrower in this
Agreement is false or misleading in any material respect; or

                  (c) If Borrower fails to observe or perform any term, covenant
or agreement (not otherwise specified in this Article VII) to be performed or
observed pursuant to the provisions of this Agreement and such default is not
cured within 10 days of written notice to Borrower from Lender of such default
or, so long as Borrower is diligently pursuing a cure, such longer period of
time as is reasonably necessary to cure such default not to exceed 30 days of
such written notice; or

                  (d) If custody or control of any substantial part of the
property of Borrower is assumed by any governmental body; or

                  (e) If Borrower suspends or discontinues its business, or if
Borrower makes an assignment for the benefit of creditors or a composition with
creditors, is unable or admits in writing its inability to pay its debts as they
mature, files a petition in bankruptcy, becomes insolvent (howsoever such
insolvency may be evidenced), is adjudicated insolvent or bankrupt, petitions or
applies to any tribunal for the appointment of any receiver, liquidator or
trustee of or for it or any substantial part of its property or assets,
commences any proceeding relating to it under any Applicable Law of any
jurisdiction whether now or hereafter in effect relating to bankruptcy,
reorganization, arrangement, readjustment of debt, receivership, dissolution or
liquidation; or if there is commenced against Borrower any such proceeding that
remains undismissed for a period of 90 days or more, or an order, judgment or
decree approving the petition in any such proceeding is entered; or if Borrower
by any act

                                                                          PAGE 7
<PAGE>   9
or failure to act indicates its consent to, approval of or acquiescence in, any
such proceeding or any appointment of any receiver, liquidator or trustee of or
for it or for any substantial part of its property or assets, suffers any such
appointment to continue undischarged or unstayed for a period of 90 days or
more, or takes any action for the purpose of effecting any of the foregoing; or
if any court of competent jurisdiction assumes jurisdiction with respect to any
such proceeding, or if a receiver or a trustee or other officer or
representative of a court or of creditors, or if any governmental body, under
color of legal authority, takes and holds possession of all or substantially all
of the assets of Borrower; or

                  (f) If any indebtedness of Borrower in excess of $500,000 for
money borrowed or under capital leases becomes or is declared due and payable
(after any applicable grace period) prior to the stated maturity thereof or is
not paid as and when it becomes due and payable; or

                  (g) If there is entered against Borrower a final judgment in
excess $500,000 that is not paid, satisfied or stayed within 30 days of the
entry thereof.

         7.2 ACCELERATION; REMEDIES

                  (a) If any Event of Default described in Section 7.1(e) shall
occur then immediately and automatically the commitment of Lender under the Loan
to make advances shall terminate, and the Loan (with accrued interest thereon)
and all other amounts owing under this Agreement and the Loan shall become due
and payable.

                  (b) If any Event of Default other than described in Section
7.1(e) shall occur and be continuing, Lender may, by written notice to Borrower,
terminate the commitment of Lender under the Loan to make advances and declare
the entire unpaid principal balance or any portion of the principal balance of
the Loan and interest accrued thereon to be immediately due and payable by the
maker thereof, and such principal and interest shall thereupon become and be
immediately due and payable, without presentation, demand, protest, notice of
protest or other notice of dishonor of any kind, all of which are hereby
expressly waived by Borrower.

ARTICLE VIII. MISCELLANEOUS

         8.1 PAYMENT OF EXPENSES

         If there shall occur any Event of Default, Lender shall be entitled to
recover any costs and expenses incurred in connection with the preservation of
rights under, and enforcement of, this Agreement, whether or not any lawsuit is
commenced, in all such cases, including, without limitation, reasonable
attorneys' fees and costs. Reasonable attorneys' fees shall include, without
limitation, attorneys' fees and costs incurred in connection with any bankruptcy
case or other insolvency proceeding commenced by or against Borrower.

                                                                          PAGE 8
<PAGE>   10
         8.2 NOTICES

         All notices, requests, consents, demands, approvals and other
communications hereunder shall be deemed to have been duly given, made or served
if made in writing and delivered personally, sent via facsimile or via courier
to the respective parties to this Agreement to the following addresses:

                  (a)      If to Borrower:

                           Eden Bioscience Corporation
                           11816 North Creek Parkway N.
                           Bothell, Washington 98011
                           Attention: Jerry L. Butler, CEO
                           Facsimile No.: (425) 806-7400

                  (b)      If to Lender:

                           Stephens Group, Inc.
                           111 Center Street, Suite 2500
                           Little Rock, Arkansas 72201
                           Attention:  Jackson Farrow, Jr.
                           Facsimile No.:  (501) 377-8027 or (501) 377-3453

The designation of the persons to be so notified or the address of such persons
for the purposes of such notice may be changed from time to time by similar
notice in writing, except that any communication with respect to a change of
address shall be deemed to be given or made when received by the party to whom
such communication was sent.

         8.3 ENTIRE AGREEMENT AND AMENDMENTS

         This Agreement represents the entire agreement between the parties
hereto with respect to the Loan and the transactions contemplated hereunder and,
except as expressly provided herein, shall not be affected by reference to any
other documents. This Agreement, or any provision hereof, may not be changed,
waived, discharged or terminated orally, but only by an instrument in writing,
signed by the party against whom enforcement of the change, waiver, discharge or
termination is sought.

         8.4 BENEFIT OF AGREEMENT

         This Agreement is binding upon and inures to the benefit of Borrower
and Lender and their successors. Lender and Borrower are precluded from
assigning any of their rights or delegating any of their obligations under this
Agreement without the prior written consent of the other party. Notwithstanding
the foregoing, Lender may assign its rights and delegate its obligations under
this Agreement to any affiliate of Lender without the consent of Borrower,

                                                                          PAGE 9
<PAGE>   11
provided that in such event, Lender shall remain obligated to make advances to
Borrower pursuant to the terms of this Agreement in the event that Lender's
assignee fails to do so in a timely manner.

         8.5 SEVERABILITY

         If any provision of this Agreement is held invalid under any Applicable
Laws, such invalidity shall not affect any other provision of this Agreement
that can be given an effect without the invalid provision, and, to this end, the
provisions hereof are severable.

         8.7 GOVERNING LAW; JURISDICTION

         This Agreement and the rights and obligations of the parties hereunder
shall be construed in accordance with and shall be governed by the laws of the
state of Washington without regard to the choice of law rules thereof. For the
purpose of enforcing the rights and obligations under this Agreement, the
parties hereby consent to the jurisdiction and venue of the courts of the state
of Washington or of any federal court located in such state including but not
limited to the Superior Court of Washington for King County and the United
States District Court for the Western District of Washington. Each party hereby
waives the right to contest the jurisdiction and venue of courts located in King
County, Washington, on the ground of inconvenience or otherwise and waives any
right to bring any action or proceeding against the other party in any court
outside King County, Washington.

         8.9 STATUTORY NOTICE

         ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR
FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON
LAW.

         IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to
be duly executed by the respective, duly authorized signatories as of the date
first above written.

                                  EDEN BIOSCIENCE CORPORATION

                                  By /s/ Bradley S. Powell
                                     ----------------------------------------

                                  Title Secretary and Chief Financial Officer
                                        -------------------------------------

                                                                         PAGE 10
<PAGE>   12
                                       STEPHENS GROUP, INC.

                                       By Jackson Farrow, Jr.
                                          -------------------------------------

                                       Title Counsel, Special Investments
                                             ----------------------------------

                                                                         PAGE 11
<PAGE>   13
                                    EXHIBIT A
                                BORROWING NOTICE

Stephens Group, Inc.
111 Center Street, Suite 2400
Little Rock, Arkansas 72201
Attention:___________________

         Reference is made to that certain Credit Agreement dated as of August
15, 2000, entered into by and between Eden Bioscience Corporation ("Borrower")
and Stephens Group, Inc. ("Lender"). Borrower hereby requests Lender to advance
$_____________ on Loan proceeds to Borrower in accordance with Section 2.3 of
the Credit Agreement.

                                       EDEN BIOSCIENCE CORPORATION

                                       By _____________________________________

                                       Title __________________________________

                                                                          PAGE 1
<PAGE>   14
                                    EXHIBIT B

                                 PROMISSORY NOTE

$10,000,000                                                      August 15, 2000

         For value received, the undersigned, EDEN BIOSCIENCE CORPORATION
("Borrower"), promises to pay to the order of STEPHENS GROUP, INC. ("Lender"),
at 111 Center Street, Suite 2500, Little Rock, Arkansas 72201, or such other
place or places as the holder hereof may designate in writing, the principal sum
of Ten Million Dollars ($10,000,000) or so much thereof as advanced by Lender in
lawful, immediately available money of the United States of America, in
accordance with the terms and conditions of that certain Credit Agreement of
even date herewith by and between Borrower and Lender (together with all
supplements, exhibits, amendments and modifications thereto, the "Credit
Agreement"). Borrower also promises to pay interest on the unpaid principal
balance hereof, commencing as of the first date of an advance hereunder, in like
money in accordance with the terms and conditions, and at the rate or rates
provided in the Credit Agreement.

         Borrower and all endorsers, sureties and guarantors hereof jointly and
severally waive presentment for payment, demand, notice of nonpayment, notice of
protest and protest of this Note, and all other notices in connection with the
delivery, acceptance, performance, default, dishonor or enforcement of the
payment of this Note except such notices as are specifically required by this
Note or by the Credit Agreement, and they agree that the liability of each of
them shall be unconditional without regard to the liability of any other party
and shall not be in any manner affected by any indulgence, extension of time,
renewal, waiver or modification granted or consented to by Lender. Borrower and
all endorsers, sureties and guarantors hereof, if any, (1) consent to any and
all extensions of time, renewals, waivers or modifications that may be granted
by Lender with respect to the payment or other provisions of this Note and the
Credit Agreement; (2) consent to the release of any property now or hereafter
securing this Note with or without substitution; and (3) agree that additional
makers, endorsers, guarantors or sureties may become parties hereto without
notice to them and without affecting their liability hereunder.

         This Note is the Note referred to in the Credit Agreement and as such
is entitled to all of the benefits and obligations specified in the Credit
Agreement. Terms defined in the Credit Agreement are used herein with the same
meanings. Reference is made to the Credit Agreement for provisions for the
repayment of this Note and the acceleration of the maturity hereof.

                                       EDEN BIOSCIENCE CORPORATION

                                       By _____________________________________

                                       Title __________________________________

                                                                          PAGE 1
<PAGE>   15
NEITHER THE SECURITY EVIDENCED BY THIS WARRANT NOR THE SECURITIES ISSUABLE UPON
EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR ANY APPLICABLE STATE LAW, AND NO INTEREST HEREIN OR THEREIN MAY
BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS
(A) THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE
STATE SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES,
(B) THE COMPANY RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER OF SAID
SECURITIES (CONCURRED IN BY LEGAL COUNSEL FOR THE COMPANY) STATING THAT SUCH
TRANSACTION IS EXEMPT FROM REGISTRATION, OR (C) THE COMPANY OTHERWISE SATISFIES
ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.

No. 7                                                       WARRANT TO PURCHASE
ISSUED:  August __, 2000                                 SHARES OF COMMON STOCK
VOID AFTER: August __, 2005

                           EDEN BIOSCIENCE CORPORATION

                          COMMON STOCK PURCHASE WARRANT

         THIS IS TO CERTIFY that, for value received and subject to the terms
and conditions hereof, Stephens Group, Inc., or such person to whom this Warrant
is transferred pursuant to Section 11 hereof (the "Holder"), is entitled, at any
time during the Exercise Period (as defined below), to purchase at the Exercise
Price (as defined below) up to the number of fully paid and nonassessable shares
of the common stock, $.0025 par value (the "Warrant Stock"), of EDEN BIOSCIENCE
CORPORATION, a Washington corporation (the "Company"), that equals the quotient
obtained by dividing 2,000,000 by the Exercise Price (as defined below) (such
number of shares being subject to adjustment as provided herein).

         This Warrant is subject to the following additional terms and
conditions:

1. EXERCISE PRICE

         The exercise price for the Warrant Stock (the "Exercise Price") shall
be (a) the per share price of the equity securities sold at the closing of the
Company's first underwritten public offering of the Company's capital stock
pursuant to an effective registration statement under the Securities Act of
1933, as amended (the "IPO"); or (b) if the IPO does not occur prior to the
closing of the Company's next private transaction or series of related private
transactions in which the Company sells equity securities (the "Next

                                                                               1
<PAGE>   16
Private Equity Financing"), the per share price (on an as converted to common
stock basis) of the equity securities sold in the Next Private Equity Financing;
or (c) if neither the IPO nor the Next Private Equity Financing has occurred by
the first anniversary of the date hereof, ten dollars ($14.00) (such Exercise
Price being subject to adjustment as provided herein).

2. EXERCISE PERIOD

         This Warrant shall be exercisable in whole or in part as follows: (a)
at any time after the expiration of the lock-up period, if any, to which the
Company agrees to be subject in connection with the IPO (which is currently
contemplated to be the 180th day after the effective date of the Company's
registration statement on Form S-1 relating to the IPO); or (b) if the IPO does
not occur prior to the closing of the Next Private Equity Financing, at any time
on or after the date of the closing of the Next Private Equity Financing; or (c)
if neither the IPO nor the Next Private Equity Financing has occurred by the
first anniversary of the date hereof, at any time on or after the first
anniversary of the date hereof. Notwithstanding the above, this Warrant shall
terminate at 5:00 p.m., Seattle time, on August __, 2005 (the "Exercise
Period").

3. METHOD OF CASH EXERCISE

         This Warrant may be exercised in whole or in part by delivering to the
Company (a) the form of Notice of Cash Exercise attached hereto as Exhibit A
duly completed and executed by the Holder, (b) this Warrant certificate, and (c)
a bank check payable to the Company in the amount of the Exercise Price
multiplied by the number of shares for which this Warrant is being exercised
(the "Purchase Price").

4. NET ISSUANCE RIGHT

         Notwithstanding the payment provisions set forth above, the Holder may
elect to convert this Warrant into shares of Warrant Stock by surrendering this
Warrant to the Company and delivering to the Company the Notice of Net Issuance
Exercise attached as Exhibit B duly completed and executed by the Holder, in
which case the Company shall issue to the Holder the number of shares of Warrant
Stock of the Company equal to the result obtained by (a) subtracting B from A,
(b) multiplying the difference by C, and (c) dividing the product by A as set
forth in the following equation:

X = (A - B) x C where:
    -----------
         A

                  X   =    the number of shares of Warrant Stock issuable upon
                           net issuance exercise pursuant to the provisions of
                           this Section 4.

                  A   =    the Fair Market Value (as defined below) of one
                           share of Warrant Stock on the date of net issuance
                           exercise.

                                                                               2
<PAGE>   17
                  B   =    the Exercise Price for one share of Warrant Stock
                           under this Warrant.

                  C   =    the number of shares of Warrant Stock as to which
                           this Warrant is exercisable pursuant to the
                           provisions of this Warrant.

         If the foregoing calculation results in a negative number, then no
shares of Warrant Stock shall be issued upon net issuance exercise pursuant to
this Section 4.

         "Fair Market Value" of a share of Warrant Stock shall mean:

         (a) if the net issuance exercise is in connection with a transaction
specified in Section 7, the value of the consideration (determined, in the case
of noncash consideration, in good faith by the Company's Board of Directors) to
be received pursuant to such transaction by the holder of one share of Warrant
Stock;

         (b) if the net issuance exercise is in connection with the initial
public offering of the Company's Common Stock (the "Common Stock"), the initial
public offering price (before deducting commission, discounts or expenses) at
which the Common Stock is sold in such offering;

         (c) if the net issuance exercise is after the occurrence of the initial
public offering of the Company's Common Stock:

                  (i) if the Company's Common Stock is traded on an exchange or
is quoted on the Nasdaq National Market, the average of the closing or last sale
price reported for the ten (10) business days immediately preceding the date of
net issuance exercise;

                  (ii) if the Company's Common Stock is not traded on an
exchange or on the Nasdaq National Market, but is traded in the over-the-counter
market, the mean of the closing bid and asked prices reported for the ten (10)
market days immediately preceding the date of net issuance exercise; and

         (d) In all other cases, the fair value as determined in good faith by
the Company's Board of Directors; provided that if the net issuance exercise
occurs within 30 days after a private transaction in which the Company sells
equity securities, the fair value shall be the price at which such equity
securities were sold in such private transaction.

         Upon net issuance exercise in accordance with this Section 4, the
Holder shall be entitled to receive from the Company a stock certificate in
proper form representing the number of shares of Warrant Stock determined in
accordance with the foregoing.

                                                                               3
<PAGE>   18
5. DELIVERY OF STOCK CERTIFICATE

         Within twenty days after the exercise of this Warrant (in full or in
part) and payment of the Purchase Price, the Company shall issue in the name of
and deliver to the Holder (a) a certificate or certificates for the number of
fully paid and nonassessable shares of Warrant Stock to which the Holder shall
be entitled upon such exercise and (b) a new Warrant of like tenor to purchase
up to that number of shares of Warrant Stock, if any, not previously purchased
by the Holder. The Holder shall for all purposes be deemed to have become the
holder of record of such shares of Warrant Stock on the date on which this
Warrant was surrendered and payment of the Purchase Price was made, irrespective
of the date of delivery of the certificate or certificates representing the
Warrant Stock; provided that, if the date of such surrender and payment is a
date when the stock transfer books of the Company are closed, such person shall
be deemed to have become the holder of record of such shares of Warrant Stock at
the close of business on the next succeeding date on which the stock transfer
books are open.

6. RESERVATION OF WARRANT STOCK

         The Company covenants and agrees that the Company will at all times
have authorized and reserved a sufficient number of shares of Common Stock to
provide for the exercise of the rights represented by this Warrant.

7. EFFECT OF REORGANIZATION

         Upon a merger, consolidation, acquisition of all or substantially all
of the property or stock, liquidation or other reorganization of the Company
(collectively, a "Reorganization") during the Exercise Period, as a result of
which the shareholders of the Company receive cash, stock or other property in
exchange for their shares of Warrant Stock, lawful provision shall be made so
that the Holder shall thereafter be entitled to receive, upon exercise of this
Warrant, the number of shares of securities of the successor corporation
resulting from such Reorganization (and cash and other property) to which a
holder of the Warrant Stock issuable upon exercise of this Warrant would have
been entitled in such Reorganization if this Warrant had been exercised
immediately prior to such Reorganization. In any such case, appropriate
adjustment (as determined in good faith by the Company's Board of Directors)
shall be made in the application of the provisions of this Warrant with respect
to the rights and interest of the Holder after the Reorganization to the end
that the provisions of this Warrant (including adjustments of the Exercise Price
and the number and type of securities purchasable pursuant to the terms of this
Warrant) shall be applicable after that event, as near as reasonably may be, in
relation to any shares deliverable after that event upon the exercise of this
Warrant.

                                                                               4
<PAGE>   19
8. ADJUSTMENT TO WARRANT

         8.1 ADJUSTMENT TO NUMBER OF SHARES

         Upon each adjustment in the Exercise Price pursuant to this Section 8,
the number of shares of Warrant Stock purchasable hereunder shall be adjusted,
to the nearest whole share, to the product obtained by multiplying such number
of shares purchasable immediately prior to such adjustment in the Exercise Price
by a fraction, the numerator of which shall be the Exercise Price immediately
prior to such adjustment and the denominator of which shall be the Exercise
Price immediately thereafter.

         8.2 ADJUSTMENTS FOR STOCK SPLIT, ETC.

         If the Company shall issue any shares of its common stock as a stock
dividend or subdivide the number of outstanding shares of common stock into a
greater number of shares, then, in either such case, the Exercise Price in
effect before such dividend or subdivision shall be proportionately reduced and
the number of shares of Warrant Stock at that time purchasable pursuant to this
Warrant shall be proportionately increased; and, conversely, if the Company
shall contract the number of outstanding shares of common stock by combining
such shares into a smaller number of shares, then the Exercise Price in effect
before such combination shall be proportionately increased and the number of
shares of Warrant Stock at that time purchasable pursuant to this Warrant shall
be proportionately decreased.

9. OTHER ADJUSTMENTS AND RESTRICTIONS

         9.1 ADJUSTMENTS FOR CORPORATE FINANCING RULE

         If the Holder believes that all or any portion of this Warrant or of
any securities or other property to be issued or transferred to Holder upon
exercise of this Warrant would constitute underwriting compensation pursuant to
NASD Rule 2710 (or any successor or substitute for said rule) (the "Corporate
Financing Rule"), then Holder, at Holder's sole option, may, by giving written
notice thereof to the Company, increase the Exercise Price for exercise of this
Warrant to an increased Exercise Price determined by Holder or decrease the
number of Shares (or other securities or the amount of other property) subject
to this Warrant to such decreased number of Shares (or other securities or
amount of other property) determined by Holder, or both.

         9.2 RESTRICTIONS PURSUANT TO CORPORATE FINANCING RULE

         If Holder serves as an underwriter for any public offering for the
Company for which the NASD determines that this Warrant is wholly or partially
included as underwriting compensation for Holder in connection with such
underwriting, then this Warrant and any Shares or other securities subject to
this Warrant shall not be sold, transferred, assigned, pledged or hypothecated,
except as permitted by the Corporate Financing Rule, for a period of one (1)
year following the effective date of the offering,

                                                                               5
<PAGE>   20
and any certificates hereafter issued representing this Warrant or any Shares or
other securities subject to this Warrant shall bear an appropriate legend
describing this restriction and stating the time period for which this
restriction is applicable.

10. FRACTIONAL SHARES

         No fractional shares shall be issued upon the exercise of this Warrant.
In lieu of fractional shares, the Company shall pay the Holder a sum in cash
equal to the fair market value of the fractional shares (as determined by the
Company's Board of Directors) on the date of exercise.

11. RESTRICTIONS ON TRANSFER

         Neither this Warrant nor any securities purchased upon exercise of this
Warrant may be transferred unless (a) such transfer is registered under the
Securities Act of 1933, as amended (the "Securities Act"), and any applicable
state securities or blue sky laws, (b) the Company has received a legal opinion
reasonably satisfactory to the Company to the effect that the transfer is exempt
from the prospectus delivery and registration requirements of the Securities Act
and any applicable state securities or blue sky laws, or (c) the Company
otherwise satisfies itself that such transfer is exempt from registration.

12. LEGEND

         A legend setting forth or referring to the above restrictions shall be
placed on this Warrant, any replacement hereof and any certificate representing
a security issued pursuant to the exercise hereof, and a stop transfer
restriction or order shall be placed on the books of the Company and with any
transfer agent until such securities may be legally sold or otherwise
transferred.

13. HOLDER AS OWNER

         The Company may deem and treat the Holder of this Warrant as the
absolute owner hereof for all purposes regardless of any notice to the contrary.

14. NO SHAREHOLDER RIGHT

         This Warrant shall not entitle the Holder to any voting rights or any
other rights as a shareholder of the Company or to any other rights whatsoever
except the rights stated herein; and no dividend or interest shall be payable or
shall accrue in respect of this Warrant or the Warrant Stock purchasable
hereunder unless, until and to the extent that this Warrant shall be exercised.

15. CONSTRUCTION

         The validity and interpretation of the terms and provisions of this
Warrant shall be governed by the laws of the State of Washington. The
descriptive headings of the several

                                                                               6
<PAGE>   21
sections of this Warrant are inserted for convenience only and shall not control
or affect the meaning or construction of any of the provisions thereof.

16. EXPIRATION

         This Warrant shall be void and all rights represented thereby shall
cease unless exercised during the Exercise Period. All restrictions set forth
herein on the shares of capital stock issued upon exercise of any rights
hereunder shall survive such exercise and expiration of the rights granted
hereunder.

17. EXCHANGE OF WARRANT

         This Warrant is exchangeable upon the surrender hereof by the Holder at
the office of the Company for new Warrants of like tenor representing in the
aggregate the rights to subscribe for and purchase the number of shares which
may be subscribed for and purchased hereunder, each of such new Warrants to
represent the right to subscribe for and purchase such number of shares as shall
be designated by the Holder at the time of such surrender.

18. LOST WARRANT CERTIFICATE

         If this Warrant is lost, stolen, mutilated or destroyed, the Company
shall issue a new Warrant of like denomination, tenor and date as this Warrant,
subject to the Company's right to require the Holder to give the Company a bond
or other satisfactory security sufficient to indemnify the Company against any
claim that may be made against it (including any expense or liability) on
account of the alleged loss, theft, mutilation or destruction of this Warrant or
the issuance of such new Warrant.

19. WAIVERS AND AMENDMENTS

         This Warrant or any provision hereof may be changed, waived, discharged
or terminated only by a statement in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought.

20. NOTICES

         All notices or other communications required or permitted hereunder
shall be in writing and shall be delivered by personal delivery, reputable
overnight courier service, telecopier or mailed by United States mail,
first-class postage prepaid, or by registered or certified mail with return
receipt requested, addressed as follows:

        If to the Holder:

                 To the address last furnished in writing to the Company by the
                 Holder.

                                                                               7
<PAGE>   22
        If to the Company:

                 Eden Bioscience Corporation
                 11816 North Creek Parkway North
                 Bothell, WA  98011-8205

         Each of the foregoing parties shall be entitled to specify a different
address by giving five days' advance written notice as aforesaid to the other
parties.

21. INVESTMENT INTENT

         By accepting this Warrant, the Holder represents that it is acquiring
this Warrant for investment and not with a view to, or for sale in connection
with, any distribution thereof.

         IN WITNESS WHEREOF, the Company has executed this Warrant as of the
date first written above.

                                       EDEN BIOSCIENCE CORPORATION

                                       By: ____________________________________
                                                Jerry L. Butler, President

                                                                               8
<PAGE>   23
                                    EXHIBIT A

                             NOTICE OF CASH EXERCISE

TO EDEN BIOSCIENCE CORPORATION

         The undersigned hereby irrevocably elects to purchase __________ shares
of common stock issuable upon the exercise of the Warrant delivered herewith and
requests that certificates for such shares be issued in the name of and
delivered to the undersigned at the address stated below, and, if said number of
shares shall not be all the shares which may be purchased pursuant to the
Warrant, the new Warrant evidencing the right to purchase the balance of such
shares shall be registered in the name of, and delivered to, the undersigned at
the address stated below. The undersigned hereby agrees with and represents to
the Company that said shares of common stock are acquired for investment and not
with a view to, or for sale in connection with, any distribution or public
offering thereof within the meaning of the Securities Act of 1933, as amended,
and agrees that the exercise of the Warrant and the issuance and transfer of the
common stock to be purchased are subject to Sections 11 and 12 of the Warrant.

         Payment is enclosed in the amount of $____________________

         Dated:  ___________ __, 200__

                                       ________________________________________

                                       By: ____________________________________

                                       Title: _________________________________

ADDRESS:

__________________________________

__________________________________

__________________________________

EIN: _____________________________

PHONE: ___________________________

FACSIMILE: _______________________

                                                                               9
<PAGE>   24
                                    EXHIBIT B

                         NOTICE OF NET ISSUANCE EXERCISE

To: EDEN BIOSCIENCE CORPORATION

         The undersigned hereby irrevocably elects to convert the attached
Warrant into such number of shares of Common Stock of EDEN Bioscience
Corporation (the "Company") as is determined pursuant to Section 4 of the
attached Warrant. The undersigned requests that certificates for such net
issuance shares be issued in the name of and delivered to the address of the
undersigned, at the address stated below. The undersigned hereby agrees with and
represents to the Company that said shares of common stock are acquired for
investment and not with a view to, or for sale in connection with, any
distribution or public offering thereof within the meaning of the Securities Act
of 1933, as amended, and agrees that the exercise of the Warrant and the
issuance and transfer of the common stock to be purchased are subject to
Sections 11 and 12 of the Warrant.

         Dated:  ___________ __, 200__

                                       ________________________________________

                                       By: ____________________________________

                                       Title: _________________________________

ADDRESS:

__________________________________

__________________________________

__________________________________

EIN: _____________________________

PHONE: ___________________________

FACSIMILE: _______________________

                                                                               1

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