Document:

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                                                                    EXHIBIT 10.4

                         LARGE SCALE BIOLOGY CORPORATION
                            INDEMNIFICATION AGREEMENT

                 THIS INDEMNIFICATION AGREEMENT (this "Agreement") is made and
entered into this _____ day of March, 2000 between Large Scale Biology
Corporation, a California corporation (the "Company"), and ____________________
("Indemnitee").

                 WHEREAS, Indemnitee, a member of the Board of Directors or an
officer, employee or agent of the Company, performs a valuable service in such
capacity for the Company;

                 WHEREAS, the stockholders of the Company have adopted Bylaws
(the "Bylaws") providing for the indemnification of the officers, directors,
employees and agents of the Company to the maximum extent authorized by Section
145 of the Delaware General Corporation Law, as amended (the "Code");

                 WHEREAS, the Bylaws and the Code, by their non-exclusive
nature, permit contracts between the Company and the members of its Board of
Directors, officers, employees or agents with respect to indemnification of such
directors, officers, employees or agents;

                 WHEREAS, in accordance with the authorization as provided by
the Code, the Company either has purchased and presently maintains or intends to
purchase and maintain a policy or policies of Directors and Officers Liability
Insurance ("D & O Insurance") covering certain liabilities which may be incurred
by its directors and officers in the performance of their duties as directors
and officers of the Company;

                 WHEREAS, as a result of developments affecting the terms,
scope and availability of D & O Insurance there exists general uncertainty as to
the extent of protection afforded members of the Board of Directors or officers,
employees or agents by such D & O Insurance and by statutory and bylaw
indemnification provisions; and

                 WHEREAS, in order to induce Indemnitee to continue to serve as
a member of the Board of Directors, officer, employee or agent of the Company,
the Company has determined and agreed to enter into this contract with
Indemnitee.

                 NOW, THEREFORE, in consideration of Indemnitee's continued
service as a director, officer, employee or agent after the date hereof, and for
other good and valid consideration, the receipt and adequacy of which is hereby
acknowledged, the parties hereto agree as follows:

                 1.       Indemnification of Indemnitee. The Company hereby
agrees to hold harmless and indemnify Indemnitee to the fullest extent
authorized or permitted by the provisions of the Code, as may be amended from
time to time.

<PAGE>   2

                 2.       Additional Indemnity. Subject only to the exclusions
set forth in Sections 3 and 6(c) hereof, the Company hereby further agrees to
hold harmless and indemnify Indemnitee:

                          (a) against any and all expenses (including
attorneys' fees), witness fees, judgments, fines and amounts paid in settlement
actually and reasonably incurred by Indemnitee in connection with any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (including an action by or in the
right of the Company) to which Indemnitee is, was or at any time becomes a
party, or is threatened to be made a party, by reason of the fact that
Indemnitee is, was or at any time becomes a director, officer, employee or agent
of the Company or any subsidiary of the Company, or is or was serving or at any
time serves at the request of the Company as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise; and

                          (b) otherwise to the fullest extent as may be
provided to Indemnitee by the Company under the non-exclusivity provisions of
Article VII, Section 6 of the Bylaws of the Company and the Code.

                 3.       Limitations on Additional Indemnity.

                          (a) No indemnity pursuant to Section 2 hereof shall
be paid by the Company:

                               i) in respect to remuneration paid to Indemnitee
if it shall be determined by a final judgment or other final adjudication that
such remuneration was in violation of law;

                              ii)  on account of any suit in which judgment is
rendered against Indemnitee for an accounting of profits made from the purchase
or sale by Indemnitee of securities of the Company pursuant to the provisions of
Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or
similar provisions of any federal, state or local statutory law;

                             iii)   on account of Indemnitee's conduct which is
finally adjudged to have been knowingly fraudulent or deliberately dishonest or
to constitute willful misconduct;

                              iv)  on account of Indemnitee's conduct which is
the subject of an action, suit or proceeding described in Section 6(c)(ii)
hereof;

                               v) on account of any action, claim or proceeding
(other than a proceeding referred to in Section 7(b) hereof) initiated by the
Indemnitee unless such action, claim or proceeding was authorized in the
specific case by action of the Board of Directors;

                              vi)  if a final decision by a Court having
jurisdiction in the matter shall determine that such indemnification is not
lawful (and, in this respect, both the Company and Indemnitee have been advised
that the Securities and Exchange Commission

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<PAGE>   3

believes that indemnification for liabilities arising under the federal
securities laws is against public policy and is, therefore, unenforceable and
that claims for indemnification should be submitted to appropriate courts for
adjudication); and

                             vii)   except to the extent the aggregate of losses
to be indemnified thereunder exceeds the sum of (a) such losses for which the
Indemnitee is indemnified pursuant to Section 1 hereof and (b) any additional
amount paid to the Indemnitee pursuant to any D & O Insurance purchased and
maintained by the Company.

                          (b) No indemnity pursuant to Section 1 or 2 hereof
shall be paid by the Company if the action, suit or proceeding with respect to
which a claim for indemnity hereunder is made arose from or is based upon any of
the following:

                               i) Any solicitation of proxies by Indemnitee, or
by a group of which he was or became a member consisting of two or more persons
that had agreed (whether formally or informally and whether or not in writing)
to act together for the purpose of soliciting proxies, in opposition to any
solicitation of proxies approved by the Board of Directors.

                              ii)  Any activities by Indemnitee that constitute
a breach of or default under any agreement between Indemnitee and the Company.

                 4.       Contribution. If the indemnification provided in
Sections 1 and 2 hereof is unavailable by reason of a Court decision described
in Section 3(a)(vi) hereof based on grounds other than any of those set forth in
paragraphs (i) through (v) of Section 3 (a) hereof, then in respect of any
threatened, pending or completed action, suit or proceeding in which the Company
is jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding), the Company shall contribute to the amount of expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred and paid or payable by Indemnitee in such proportion as is
appropriate to reflect (i) the relative benefits received by the Company on the
one hand and Indemnitee on the other hand from the transaction from which such
action, suit or proceeding arose, and (ii) the relative fault of the Company on
the one hand and of Indemnitee on the other in connection with the events which
resulted in such expenses, judgments, fines or settlement amounts, as well as
any other relevant equitable considerations. The relative fault of the Company
on the one hand and of Indemnitee on the other shall be determined by reference
to, among other things, the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent the circumstances resulting in
such expenses, judgments, fines or settlement amounts. The Company agrees that
it would not be just and equitable if contribution pursuant to this Section 4
were determined by pro rata allocation or any other method of allocation which
does not take account of the foregoing equitable considerations.

                 5.       Notification and Defense of Claim. Not later than
thirty (30) days after receipt by Indemnitee of notice of the commencement of
any action, suit or proceeding, Indemnitee shall, if a claim in respect thereof
is to be made against the Company under this Agreement, notify the Company of
the commencement thereof; but Indemnitee's omission so to notify the Company
will not relieve the Company from any liability which it may have to

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<PAGE>   4

Indemnitee otherwise than under this Agreement. With respect to any such action,
suit or proceeding as to which Indemnitee notifies the Company of the
commencement thereof:

                          (a) The Company will be entitled to participate
therein at its own expense.

                          (b) Except as otherwise provided below, to the extent
that it may wish, the Company shall, jointly with any other indemnifying party
similarly notified, be entitled to assume the defense thereof, with counsel
reasonably satisfactory to Indemnitee. After notice from the Company to
Indemnitee of its election to assume the defense thereof, the Company will not
be liable to Indemnitee under this Agreement for any legal or other expenses
subsequently incurred by Indemnitee in connection with the defense thereof,
other than reasonable costs of investigation or as otherwise provided below.
Indemnitee shall have the right to employ its own counsel in such action, suit
or proceeding, but the fees and expenses of such counsel incurred after notice
from the Company of the Company's assumption of the defense thereof shall be at
the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has
been authorized by the Company; (ii) Indemnitee shall have reasonably concluded
that there may be a conflict of interest between the Company and Indemnitee in
the conduct of the defense of such action; or (iii) the Company shall not in
fact have employed counsel to assume the defense of such action; in each of
which cases the fees and expenses of Indemnitee's separate counsel shall be paid
by the Company. The Company shall not be entitled to assume the defense of any
action, suit or proceeding brought by or on behalf of the Company or as to which
Indemnitee shall have made the conclusion provided for in (ii) above.

                          (c) The Company shall not be liable to indemnify
Indemnitee under this Agreement for any amounts paid in settlement of any action
or claim effected without its written consent. The Company shall be permitted to
settle any action except that it shall not settle any action or claim in any
manner which would impose any penalty or limitation on Indemnitee without
Indemnitee's written consent. Neither the Company nor Indemnitee will
unreasonably withhold its consent to any proposed settlement.

                 6.       Advancement and Repayment of Expenses.

                          (a) In the event that Indemnitee employs his or her
own counsel pursuant to Sections 5(b)(i) through (iii) above, the Company shall
advance to Indemnitee, prior to any final disposition of any threatened or
pending action, suit or proceeding, whether civil, criminal, administrative or
investigative, any and all reasonable expenses (including legal fees and
expenses) incurred in investigating or defending any such action, suit or
proceeding within ten (10) days after receiving from Indemnitee copies of
invoices presented to Indemnitee for such expenses.

                          (b) Indemnitee agrees that Indemnitee will reimburse
the Company for all reasonable expenses paid by the Company in investigating or
defending any civil or criminal action, suit or proceeding against Indemnitee in
the event and only to the extent it shall be ultimately determined by a final
judicial decision (from which there is no right of appeal) that Indemnitee is
not entitled, under the provisions of the Code, the Bylaws, this Agreement or
otherwise, to be indemnified by the Company for such expenses.

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<PAGE>   5

                          (c) Notwithstanding the foregoing, the Company shall
not be required to advance such expenses to Indemnitee in respect of any action
arising from or based upon any of the matters set forth in subsection (b) of
Section 3 or if Indemnitee (i) commences any action, suit or proceeding as a
plaintiff unless such advance is specifically approved by a majority of the
Board of Directors or (ii) is a party to an action, suit or proceeding brought
by the Company and approved by a majority of the Board which alleges willful
misappropriation of corporate assets by Indemnitee, disclosure of confidential
information in violation of Indemnitee's fiduciary or contractual obligations to
the Company, or any other willful and deliberate breach in bad faith of
Indemnitee's duty to the Company or its shareholders.

                 7.       Enforcement.

                          (a) The Company expressly confirms and agrees that it
has entered into this Agreement and assumed the obligations imposed on the
Company hereby in order to induce Indemnitee to continue as a director, officer,
employee or other agent of the Company, and acknowledges that Indemnitee is
relying upon this Agreement in continuing in such capacity.

                          (b) In the event Indemnitee is required to bring any
action to enforce rights or to collect moneys due under this Agreement and is
successful in such action, the Company shall reimburse Indemnitee for all
Indemnitee's reasonable fees and expenses, including attorney's fees, in
bringing and pursuing such action.

                 8.       Subrogation. In the event of payment under this
agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee, who shall execute all documents
required and shall do all acts that may be necessary to secure such rights and
to enable the Company effectively to bring suit to enforce such rights.

                 9.       Continuation of Obligations. All agreements and
obligations of the Company contained herein shall commence upon the date that
Indemnitee first became a member of the Board of Directors or an officer,
employee or agent of the Company, as the case may be, and shall continue during
the period Indemnitee is a director, officer, employee or agent of the Company
(or is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise) and shall continue thereafter so long
as Indemnitee shall be subject to any possible claim or threatened, pending or
completed action, suit or proceeding, whether civil, criminal or investigative,
by reason of the fact that Indemnitee was a director, officer, employee or agent
of the Company or serving in any other capacity referred to herein.

                 10.      Survival of Rights. The rights conferred on Indemnitee
by this Agreement shall continue after Indemnitee has ceased to be a director,
officer, employee or other agent of the Company and shall inure to the benefit
of Indemnitee's heirs, executors and administrators.

                 11.      Non-Exclusivity of Rights. The rights conferred on
Indemnitee by this Agreement shall not be exclusive of any other right which
Indemnitee may have or hereafter acquire under any statute, provision of the
Company's Certificate of Incorporation or Bylaws, agreement, vote of
stockholders or directors, or otherwise, both as to action in his official
capacity and as to action in another capacity while holding office; provided,
however, that this

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<PAGE>   6

Agreement shall supersede and replace any prior indemnification agreements
entered into by and between the Company and Indemnitee and that any such prior
indemnification agreement shall be terminated upon the execution of this
Agreement.

                 12.      Separability. Each of the provisions of this Agreement
is a separate and distinct agreement and independent of the others, so that if
any or all of the provisions hereof shall be held to be invalid or unenforceable
for any reason, such invalidity or unenforceability shall not affect the
validity or enforceability of the other provisions hereof or the obligation of
the Company to indemnify the Indemnitee to the full extent provided by the
Bylaws or the Code.

                 13.      Governing Law. This Agreement shall be interpreted and
enforced in accordance with the laws of the State of Delaware.

                 14.      Binding Effect. This Agreement shall be binding upon
Indemnitee and upon the Company, its successors and assigns, and shall inure to
the benefit of Indemnitee, his or her heirs, personal representatives and
assigns and to the benefit of the Company, its successors and assigns.

                 15.      Amendment and Termination. No amendment, modification,
termination or cancellation of this Agreement shall be effective unless it is in
writing and is signed by both parties hereto.

                 IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on and as of the day and year first above written.

                               LARGE SCALE BIOLOGY CORPORATION
                               a California corporation

                               By:
                                  --------------------------------------

                               INDEMNITEE

                               -----------------------------------------
                               Name & Title

                       Address:
                               -----------------------------------------

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

                                       6<PAGE>   1
                                                                   EXHIBIT 10.6

**************************** NOTICE OF GRANT AWARD ****************************

SMALL BUSINESS INNOVATION RESEARCH PROG                   Issue Date: 1/05/2000

Department of Health and Human Services
National Institutes of Health

NATIONAL CANCER INSTITUTE

*******************************************************************************

Grant Number: 4 R44 CA82038-02
Principal Investigator: ANDERSON, NORMAN L. PHD
Project Title:      PROTEOMIC TECHNOLOGIES FOR CANCER RESEARCH

PRESIDENT AND CEO
LARGE SCALE BIOLOGY CORP.
9620 MEDICAL CENTER DR.
ROCKVILLE, MD. 20850-3338

Budget Period:   01/05/2000 - 12/31/2000
Project Period:  05/01/1999 - 12/31/2001

Dear Business Official:

The National Institutes of Health hereby awards a grant in the amount of
$1,521,192 (see "Award Calculation" in Section I) to LARGE SCALE BIOLOGY
CORPORATION in support of the above referenced project. This award is pursuant
to the authority of 42 USC 241 42 CFR PART 52 15 USC 638 and is subject to
attached terms and conditions.

Acceptance of this award including attached Terms and Conditions is acknowledged
by the grantee when funds are drawn down or otherwise obtained from the grant
payment system.

Award recipients are responsible for reporting inventions derived or reduced to
practice in the performance of work under this grant. Rights to inventions vest
with the grantee organization provided certain requirements are met and there
is acknowledgment of NIH support. In addition, recipients must ensure that
patent and license activities are consistent with their responsibility to make
unique research resources developed under this award available to the
scientific community, in accordance with NIH policy. For additional
information, please visit http://www.iedison.gov.

If you have any questions about this award, please contact the individual(s)
referenced in the attachments.

Sincerely yours,

By: /s/ Crystal Wolfrey
    -------------------------
    Crystal Wolfrey
    Grants Management Officer
    NATIONAL CANCER INSTITUTE

Attachments

<PAGE>   2
SECTION I - AWARD DATA - 4 R44 CA82038-02

AWARD CALCULATION (U.S. Dollars):

Direct Costs                                                          $890,540
F&A Costs                                                             $534,324
APPROVED BUDGET                                                     $1,424,864
Fee                                                                    $96,328
TOTAL                                                               $1,521,192

Recommended future year total cost support, subject to the availability of funds
and satisfactory progress of the project, is as follows.

03    $1,227,167

FISCAL INFORMATION:
CFDA Number:   93.394
EIN:   1521397232A1
Document Number:    R4CA82038B

IC  /  CAN   /  FY2000  /  FY2001

CA / 8423311 / 1,521,192 / 1,227,167

NIH ADMINISTRATIVE DATA:
PCC: 1AAI3311 / OC:41.4D / Processed:  WOLFREYC 000104 0215

SECTION II - PAYMENT/HOTLINE INFORMATION - 4 R44 CA82038-02

For Payment and HHS Office of Inspector General Hotline Information, see the
NIH Home Page at http://www.nih.gov/grants/policy/awardconditions.htm.

SECTION III - TERMS AND CONDITIONS - 4 R44 CA82038-02

This award is based on the application submitted to, and as approved by, the
NIH on the above-titled project and is subject to the terms and conditions
incorporated either directly or by reference in the following:

a. The grant program legislation and program regulation cited in this Notice of
Grant Award.
b. The restrictions on the expenditure of federal funds in appropriations acts,
to the extent those restrictions are pertinent to the award.
c. 45 CFR Part 74 or 45 CFR Part 92 as applicable.
d. The NIH Grants Policy Statement, including addenda in effect as of the
beginning date of the budget period.
e. This award notice, INCLUDING THE TERMS AND CONDITIONS CITED BELOW.

(see NIH Home Page at http://www.nih.gov/grants/policy/awardconditions.htm for
certain references cited above.)

This grant is included under Expanded Authorities.

This grant is subject to Streamlined Noncompeting Award Procedures (SNAP).

Treatment of Program Income:
Additional Costs

INFORMATION  Advances of Federal funds must be maintained in a Federally insured
and interest bearing account. Questions concerning access to the PHS Payment
Management System should be directed to the PMS Office at (301) 443-1660.

INFORMATION  The total fixed fee for your Phase II project is $173,325 and is in
addition to allowable direct and facilities and administrative costs. This fee
is incrementally funded proportionately for each budget period. $96,328 are
allotted for payment of fixed fee for the budget period covered by this Notice
of Grant Award. [Additional funds for the remainder of the total fixed fee are
intended to be allotted by a future Notice(s) of Grant Award. Unless and until
such future Notice(s) of Grant Award is (are) issued, the Government will not be
obligated to reimburse the grantee organization for more than the funds
presently allotted for payment of the fixed fee.] An adjustment of the fee will
be made in the event the grant is terminated or future support is withheld. The
fee allotted under this Notice of Grant Award is to be drawn down from the DHHS
Payment Management System in increments proportionate to the drawdown for costs.

INFORMATION  This award includes funds for 12 months of support. The budget
period start date has been delayed from January 1 to January 5 due to the NCI's
late receipt of other support information; however, the expiration date of
the budget period remains unchanged (12/31/2000). Allowable preaward costs may
be charged to this award, in accordance with the conditions outlined in the NIH
Grants Policy Statement, (October 1998), and with institutional requirements
for prior approval.

INFORMATION  Withdrawal of the commitment(s) as described in the grantee's
Commitment Appendix may be considered sufficient reason by the National Cancer
Institute to suspend and/or terminate this award or to withhold support for the
project.

<PAGE>   3
REQUIREMENT  This award is subject to the requirements pertaining to the
awardee's financial and business management systems, as set forth in the
document entitled "Requirements for Financial and Business Management Systems
for SBIR/STTR Awardees," which was enclosed in Mr. Leo F. Buscher Jr.'s letter
dated November 15, 1999, to the Organization's Business Official, and which is
hereby incorporated by reference.

Prior to drawing down funds for this award from the payment management system,
the awardee is required to have in place written policies and procedures for
financial and business management systems that comply with the standards set
forth in "Requirements for Financial and Business Management Systems for
SBIR/STTR Awardees," and must follow the policies and procedures for the
duration of this project.

An additional copy of the document, "Requirements for Financial and Business
Management Systems for SBIR/STTR Awardees," can be obtained by contacting the
grants management specialist identified on the award notice.

INFORMATION  Intellectual property rights: Normally the awardee organization
retains the principal worldwide patent rights to any invention developed with
United States Government support. Under Title 37 Code of Federal Regulations
Part 401, the Government receives a royalty-free license for its use, reserves
the right to require the patent holder to license others in certain
circumstances, and requires that anyone exclusively licensed to sell the
invention in the United States must normally manufacture it substantially in
the United States.

Rights and obligations related to inventions created or reduced to practice as a
result of this award are detailed in 35 U.S.C. 205 and 37 CFR Part 401. These
inventions must be reported to the Extramural Invention Reporting and Technology
Resources Branch, OPERA, NIH, 6705 Rockledge Drive, MSC 7980, Bethesda, MD
20892-7080, (301) 435-1986. For additional information, access the NIH link on
the Interagency Edison web site (www.iedison.gov) which includes an electronic
invention reporting system, reference information and the text to 37 CFR 401.

To the extent authorized by 35 U.S.C., Section 205, the Government will not
make public any information disclosing an NIH-supported invention for a 4-year
period to allow the awardee organization a reasonable time to file a patent
application, nor will the Government release any information that is part of
that patent application.

The fixed fee provided as part of this Notice of Grant Award is in addition to
direct and facilities and administrative costs. The fee is to be drawn down
from the DHHS Payment Management System in increments proportionate to the draw
down of costs.

Allowable costs conducted by for-profit organizations will be determined by
apply the cost principles of Contracts with Commercial Organizations set forth
in 48 CFR, Subpart 31.2.

INFORMATION  For administrative and management concerns, contract the Grants
Management Specialist, Crystal Wolfrey, at (310) 496-8634 or via e-mail at
crystal.wolfrey@nih.gov. For progammatic and scientific concerns, contact the
Program Director, Dr. Sudhir Srivastava at (310) 496-3983.

INFORMATION In a continuing effort to provide exceptional customer service, the
NCI Grants Administration Branch has set up a Feedback address on its web site
(http://www.nci.nih.gov/admin/gab/index.htm). General concerns and issues
related to NCI grants policies, procedures, and practices can be sent to the
Customer Liaison using this feature. Specific questions or concerns related to
this grant should be addressed to the Grants Management Specialist listed in
the Terms of Award.

Crystal Wolfrey, Grants Specialist

SPREADSHEET

GRANT NUMBER 4 R44 CA82038-02

P.I.: ANDERSON, NORMAN L

INSTITUTION: LARGE SCALE BIOLOGY CORPORATION

<TABLE>
<CAPTION>
                        YEAR O2             YEAR O3
                      ===========         ===========
<S>                   <C>                 <C>
TOTAL DC                  890,540             718,856

TOTAL F&A                 534,324             431,314

TOTAL COST              1,424,864           1,150,170

FEE                        96,328              76,997
</TABLE>

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