Document:

<PAGE>

                                                                    Exhibit 10.4

                            M O N S A N T O [LOGO]
                               Food.Health.Hope

                                                       MONSANTO COMPANY
                                                       800 North Lindbergh Blvd
                                                       St. Louis, Missouri 63167
                                                       http://www.monsanto.com

                                 July 13, 2000

Frank V. AtLee
10137 East Horizon Drive
Scottsdale, AZ 85262-3015

Dear Frank:

This letter agreement (this "Agreement") is to confirm the mutual agreement of
the parties with respect to the terms and conditions under which you will
provide consulting services to Monsanto Company (the "Company"), which is
currently a wholly-owned subsidiary of Pharmacia Corporation ("Pharmacia"). The
Company has filed a registration statement relating to a proposed initial public
offering of its shares (the "IPO"). This Agreement is not conditioned upon
consummation of the IPO.

1.  Chairmanship. Effective June 20, 2000, you were appointed as a member of the
    ------------
Board of Directors of the Company (the "Board"), Chairman of the Board and
Chairman of the Executive Committee of the Board. Pharmacia shall vote its
shares of the Company in favor of your re-election to successive terms as a
member of the Board until the annual meeting of the shareholders of the Company
occurring in 2003 (the "2003 Annual Meeting"). You shall receive for your
serving in these capacities the compensation provided to all members of the
Board, together with such special fees as may be provided for serving as
Chairman of the Board and as Chairman of the Executive Committee and of any
other committees of the Board to which you may be appointed.

2.  Consulting Services. You hereby agree to provide such consulting services
    -------------------
("Consulting Services"), including advice regarding policies, long-term
strategies and general business issues relating to the Company and its industry,
as the Board or the Chief Executive Officer of the Company may reasonably
request from time to time.

3.  Consulting Term. Unless extended by written agreement between you and the
    ---------------
Company or unless earlier terminated in accordance with the provisions of this
Agreement, the term during which you shall provide Consulting Services under
this Agreement (the "Consulting Term") shall commence on June 20, 2000, and
terminate on the date of the 2003 Annual Meeting. The Company or you shall have
the right to terminate the Consulting Term immediately upon written notice to
the other party. Except as provided below, in the event of such a termination of
the Consulting Term, the Company's sole liability shall be to make the payments
due pursuant to
<PAGE>

paragraph 4 hereof for Consulting Services provided by you prior to the
effective date of such termination and for which payment has not already been
made. If the Consulting Term is terminated by the Company other than as the
result of or in connection with the breach by you of any of your obligations
under this Agreement, or if you should die or become unable to render the
Consulting Services because of your permanent disability, then the Company shall
also pay you (or your designated beneficiary, or if you have not designated a
beneficiary, your estate) the Consulting Fees that would have been credited to
the Account pursuant to paragraph 4 hereof through the date of the 2003 Annual
Meeting (calculated taking into account such Retainer Amounts (as defined in
Section 4(c) below) as are reasonably projected to be paid to you), in a single
lump sum amount.

4. Consulting Fee. (a) As compensation for your Consulting Services, the Company
   --------------
shall pay you the fees provided for in this paragraph 4 (the "Consulting Fees").
A Consulting Fee of $33,334 per month, less the Retainer Amounts, shall be
credited to a bookkeeping account in your name (the "Account"), monthly in
arrears during the Consulting Term. The amounts credited to the Account shall
bear interest at the Moody's Baa Bond Index Rate, as in effect from time to
time. The balance in the Account shall be paid to you promptly following the
termination of the Consulting Term for any reason. Notwithstanding the
foregoing, if you and the Company so agree, the Account may be transferred to
and governed by the terms and conditions for deferral under any plan relating to
non-employee director compensation that may hereafter be adopted by the Company.

(b) In addition, the Company shall reimburse you for your customary and
reasonable out-of-pocket expenses incurred in performing the Consulting
Services, upon presentation of appropriate documentation hereof.

(c) The "Retainer Amounts" means the cash value of all regular fees paid to you
for your services as a member of the Board, Chairman of the Board and Chairman
of the Executive Committee and of any other committees of the Board to which you
may be appointed, including regular meeting fees and fees for serving as
chairman of any committees, whether paid to you in cash, stock, or stock
options, and whether or not payment or delivery thereof is deferred; provided,
that the Retainer Amounts shall not include the value of any stock options
granted to you as a "founders' grant" nor any expense reimbursements you may
receive. The value of any such regular fees that are not paid in cash shall be
determined at the time the relate award is granted (e.g., upon grant of a right
to receive deferred stock). The value of any such regular fees that are to be
paid in cash but on a deferred basis shall be determined based upon the
principal amount thereof, without regard to the interest or other earnings that
may be accrued thereon during the deferral period.

5. Confidentiality. In rendering your services hereunder, you may have acquired
   ---------------
or may acquire from the Company or may develop certain information and data
which the Company wishes to keep confidential, including, but not limited to,
any information regarding the Company's products, projects, business, plans,
programs, plants, processes, equipment, costs, customers and operations and
information which the Company has obtained from third parties and with respect
to which the Company is obligated to maintain confidentiality (collectively,

                                       2
<PAGE>

"Company Information"). You shall not disclose any Company Information to third
parties or use any Company Information (other than in connection with performing
your obligations under this Agreement or as a member of the Board), without in
each instance securing the prior written consent of the Company. All notes,
memoranda, records, tapes, printouts and other documents (including, but not
limited to, all electronic versions, drafts, copies and excerpts thereof)
embodying or referring to the Company Information or supplied to you by the
Company (collectively, "Documents") shall be the property of the Company and
shall be subject to this Agreement. The Company shall be free to use all
Documents in its business. All Documents shall be delivered or returned to the
Company immediately after termination of your services hereunder for any reason,
provided, however, that you may retain one archival copy of all reports
delivered to the Company and of all working papers necessary to support your
analyses, conclusions and recommendations. You further agree to indemnify the
Company for any losses, damages, liabilities, costs or expenses (including
attorneys' fees) incurred by unauthorized use or disclosure by you of any
Company Information or any breach of the provisions of this paragraph.

6.  Independent Contractor. In performing your services hereunder, your status
    ----------------------
shall be that of an independent contractor and not that of an employee or
part-time employee of the Company. You acknowledge that you are responsible for
all taxes with respect to the compensation payable to you hereunder.

7.  Governing Law. The validity, interpretation and performance of this
    -------------
Agreement and any dispute connected herewith shall be governed by and construed
in accordance with the laws of the state of Missouri (except its laws and
decisions regarding conflicts of law, which shall be disregarded in their
entirety).

                                       3
<PAGE>

If the foregoing terms and conditions are acceptable to you, please indicate
your acceptance and agreement by executing this Agreement in triplicate at the
place indicated below and returning two copies to the Company. The other copy is
for your files.

                                Very truly yours,

                                MONSANTO COMPANY

                                /s/ Hendrik A. Verfaillie
                                --------------------------------
                                By:    Hendrik A. Verfaillie
                                Title: Chief Executive Officer

                                PHARMACIA CORPORATION

                                /s/ Fred Hassan
                                --------------------------------
                                By:    Fred Hassan
                                Title: Chief Executive Officer

AGREED TO AS OF THE DATE
FIRST ABOVE WRITTEN:

/s/ Frank V. AtLee
--------------------------------
Frank V. AtLee

                                       4<PAGE>

                                                                   Exhibit 10.10

                                                                  EXECUTION COPY

                               U.S. $1,000,000,000

                            364-DAY CREDIT AGREEMENT

                           Dated as of August 8, 2000

                                      Among

                                MONSANTO COMPANY

                                       and

                              PHARMACIA CORPORATION

                                 as Borrowers,
                                 -- ---------

                        THE INITIAL LENDERS NAMED HEREIN

                              as Initial Lenders,
                              -- ------- -------

                                 CITIBANK, N.A.

                            as Administrative Agent,
                            -- -------------- -----

                            THE CHASE MANHATTAN BANK

                             as Syndication Agent,
                             -- ----------- -----

               COMMERZBANK AG NEW YORK AND GRAND CAYMAN BRANCHES
                                      and
                                  BANK ONE, NA

                           as Co-Documentation Agents
                           -- ---------------- ------

                                      and

              SALOMON SMITH BARNEY INC. and CHASE SECURITIES INC.

                 as Co-Lead Arrangers and Joint Book Managers
                 -- ------- --------- --- ----- ---- --------
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                 Page
                                   ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS
<S>                                                                              <C>
SECTION 1.01. Certain Defined Terms.............................................   1
              ---------------------

SECTION 1.02. Computation of Time Periods.......................................  11
              ---------------------------

SECTION 1.03. Accounting Terms..................................................  11
              ----------------

                                   ARTICLE II

                       AMOUNTS AND TERMS OF THE ADVANCES

SECTION 2.01. The Revolving Credit Advances.....................................  12
              -----------------------------

SECTION 2.02. Making the Revolving Credit Advances..............................  12
              ------------------------------------

SECTION 2.03. The Competitive Bid Advances......................................  13
              ----------------------------

SECTION 2.04. Fees..............................................................  15
              ----

SECTION 2.05. Termination or Reduction of the Commitments.......................  16
              -------------------------------------------

SECTION 2.06. Repayment of Revolving Credit Advances............................  16
              --------------------------------------

SECTION 2.07. Interest on Revolving Credit Advances; Regulation D Compensation..  16
              ----------------------------------------------------------------

SECTION 2.08. Interest Rate Determination.......................................  17
              ---------------------------

SECTION 2.09. Optional Conversion of Revolving Credit Advances..................  17
              ------------------------------------------------

SECTION 2.10. Optional Prepayments of Revolving Credit Advances.................  18
              -------------------------------------------------

SECTION 2.11. Increased Costs...................................................  18
              ---------------

SECTION 2.12. Illegality........................................................  19
              ----------

SECTION 2.13. Payments and Computations.........................................  20
              -------------------------

SECTION 2.14. Taxes.............................................................  21
              -----

SECTION 2.15. Sharing of Payments, Etc..........................................  22
              ------------------------

SECTION 2.16. Use of Proceeds...................................................  23
              ---------------

SECTION 2.17. Extension of Termination Date.....................................  23
              -----------------------------

SECTION 2.18. Evidence of Debt..................................................  24
              ----------------
</TABLE>

                                       i
<PAGE>

                                  ARTICLE III

                    CONDITIONS TO EFFECTIVENESS AND LENDING
<TABLE>
<S>                                                                                         <C>
SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03.............  25
              ---------------------------------------------------------------

SECTION 3.02. Conditions Precedent to Monsanto Effective Date.............................  26
              -----------------------------------------------

SECTION 3.03. Conditions Precedent to Each Revolving Credit Borrowing and Extension Date..  27
              --------------------------------------------------------------------------

SECTION 3.04. Conditions Precedent to Each Competitive Bid Borrowing......................  27
              ------------------------------------------------------

SECTION 3.05. Determinations Under Sections 3.01 and 3.02.................................  28
              -------------------------------------------

                                  ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties of the Borrowers.............................  28
              ------------------------------------------------

SECTION 4.02. Representation and Warranty of the Lenders..................................  29
             -------------------------------------------

                                   ARTICLE V

                          COVENANTS OF THE BORROWERS

SECTION 5.01. Affirmative Covenants.......................................................  29
              ---------------------

SECTION 5.02. Negative Covenants..........................................................  30
              ------------------

SECTION 5.03. Financial Covenant..........................................................  32
              ------------------

                                  ARTICLE VI

                               EVENTS OF DEFAULT

SECTION 6.01. Events of Default...........................................................  32
              -----------------

                                  ARTICLE VII

                                   THE AGENT

SECTION 7.01. Authorization and Action....................................................  33
              ------------------------

SECTION 7.02. Agent's Reliance, Etc.......................................................  34
              ---------------------

SECTION 7.03. Citibank and Affiliates.....................................................  34
              -----------------------

SECTION 7.04. Lender Credit Decision......................................................  34
              ----------------------

SECTION 7.05. Indemnification.............................................................  34
              ---------------

SECTION 7.06. Successor Agent.............................................................  35
              ---------------

SECTION 7.07. Other Agents................................................................  35
              ------------
</TABLE>

                                       ii
<PAGE>

                                  ARTICLE VIII

                                  MISCELLANEOUS

SECTION 8.01. Amendments, Etc...............................................  35
              ---------------

SECTION 8.02. Notices, Etc..................................................  35
              ------------

SECTION 8.03. No Waiver; Remedies...........................................  35
              -------------------

SECTION 8.04. Costs and Expenses............................................  36
              ------------------

SECTION 8.05. Right of Set-off..............................................  36
              ----------------

SECTION 8.06. Binding Effect................................................  37
              --------------

SECTION 8.07. Assignments and Participations................................  37
              ------------------------------

SECTION 8.08. Confidentiality...............................................  39
              ---------------

SECTION 8.09. Governing Law.................................................  39
              -------------

SECTION 8.10. Execution in Counterparts.....................................  39
              -------------------------

SECTION 8.11. Jurisdiction, Etc.............................................  39
              -----------------

SECTION 8.12. Resignation of Pharmacia as Borrower..........................  39
              ------------------------------------

SECTION 8.13. Waiver of Jury Trial..........................................  39
              --------------------

Schedules
---------
Schedule I       -  List of Applicable Lending Offices
Schedule 3.01(b) -  Disclosed Litigation

Exhibits
--------
Exhibit A-1  -  Form of Revolving Credit Note
Exhibit A-2  -  Form of Competitive Bid Note
Exhibit B-1  -  Form of Notice of Revolving Credit Borrowing
Exhibit B-2  -  Form of Notice of Competitive Bid Borrowing
Exhibit C    -  Form of Assignment and Acceptance
Exhibit D    -  Form of Assumption Agreement
Exhibit E    -  Form of Notice of Extension of Termination Date

                                      iii
<PAGE>

                            364-DAY CREDIT AGREEMENT

                           Dated as of August 8, 2000

          MONSANTO COMPANY, a Delaware corporation ("Monsanto"), PHARMACIA
                                                     --------
CORPORATION, a Delaware corporation ("Pharmacia" and, together with Monsanto,
                                      ---------
the "Borrowers"), the banks, financial institutions and other institutional
     ---------
lenders (the "Initial Lenders") listed on the signature pages hereof, CITIBANK,
              ---------------
N.A.  ("Citibank"), as administrative agent (the "Agent") for the Lenders (as
        --------                                  -----
hereinafter defined), SALOMON SMITH BARNEY INC. and CHASE SECURITIES INC., as
co-lead arrangers and joint book managers, THE CHASE MANHATTAN BANK, as
syndication agent, and COMMERZBANK AG NEW YORK AND GRAND CAYMAN BRANCHES
("Commerzbank") and BANK ONE, NA, as co-documentation agent, agree as follows:
  -----------

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

          SECTION 1.01.    Certain Defined Terms.  As used in this Agreement,
                           ---------------------
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

          "Advance" means a Revolving Credit Advance or a Competitive Bid
           -------
     Advance.

          "Affiliate" means, as to any Person, any other Person that, directly
           ---------
     or indirectly, controls, is controlled by or is under common control with
     such Person or is a director or officer of such Person.  For purposes of
     this definition, the term "control" (including the terms "controlling",
     "controlled by" and "under common control with") of a Person means the
     possession, direct or indirect, of the power to vote 5% or more of the
     Voting Stock of such Person or to direct or cause the direction of the
     management and policies of such Person, whether through the ownership of
     Voting Stock, by contract or otherwise.

          "Agent's Account" means the account of the Agent maintained by the
           ---------------
     Agent at Citibank with its office at 399 Park Avenue, New York, New York
     10043, Account No. 36852248, Attention: William Clark.

          "Aggregate Amount of Financing Outstanding" at any time means the
           -----------------------------------------
     aggregate amount of proceeds received in connection with a Permitted
     Receivables Financing, less (a) any amounts collected in connection with
     the accounts receivable sold, conveyed or otherwise transferred pursuant to
     such financing and (b) the amount of any defaulted accounts receivable the
     uncollectibility of which is a risk assumed by the transferee of such
     accounts receivable.

          "Applicable Lending Office" means, with respect to each Lender, such
           -------------------------
     Lender's Domestic Lending Office in the case of a Base Rate Advance and
     such Lender's Eurodollar Lending Office in the case of a Eurodollar Rate
     Advance and, in the case of a Competitive  Bid Advance, the office of such
     Lender notified by such Lender to the Agent as its Applicable Lending
     Office with respect to such Competitive Bid Advance.
<PAGE>

          "Applicable Margin"  means, as to any Borrower, for Base Rate Advances
           -----------------
     made to such Borrower, 0.0% per annum and, for Eurodollar Rate Advances
     made to such Borrower as of any date, a percentage per annum determined by
     reference to the Public Debt Rating of such Borrower in effect on such date
     as set forth below:

<TABLE>
<CAPTION>
Public Debt Rating                          Public Debt Rating                       Applicable Margin for
(Short Term Rating)                         (Long Term Rating)                       Eurodollar Rate Advances
S&P/Moody's                                 S&P/Moody's
---------------------------------------------------------------------------------------------------------------
<S>                                         <C>                                <C>
Level 1                                     Level 1
-------                                     -------
A-1+ and P-1                                A+ or A1                                 0.195%
---------------------------------------------------------------------------------------------------------------
Level 2                                     Level 2
-------                                     -------
Lower than Level 1 but at least A-1 and     Lower than Level 1 but at least          0.235%
P-1                                         A or A2
---------------------------------------------------------------------------------------------------------------
Level 3                                     Level 3
-------                                     -------
Lower than Level 2 but at least A-1 or P-1  Lower than Level 2 but at least          0.320%
                                            A- or A3
---------------------------------------------------------------------------------------------------------------
Level 4                                     Level 4
-------                                     -------
Lower than Level 3 but at least A-2 and     Lower than Level 3 but at least          0.525%
P-2                                         BBB+ or Baa1
---------------------------------------------------------------------------------------------------------------
Level 5                                     Level 5
-------                                     -------
Lower than Level 4                          Lower than Level 4                       0.850%
---------------------------------------------------------------------------------------------------------------
</TABLE>

          "Applicable Percentage"  means, as to any Borrower, a percentage per
           ---------------------
     annum determined by reference to the Public Debt Rating of such Borrower in
     effect on such date as set forth below:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Public Debt Rating                          Public Debt Rating                       Applicable
(Short Term Rating)                         (Long Term Rating)                       Percentage
S&P/Moody's                                 S&P/Moody's
---------------------------------------------------------------------------------------------------------------
<S>                                         <C>                                      <C>
Level 1                                     Level 1
-------                                     -------
A-1+ and P-1                                A+ or A1                                 0.055%
---------------------------------------------------------------------------------------------------------------
Level 2                                     Level 2
-------                                     -------
Lower  than Level 1 but at least A-1        Lower than Level 1 but at least
and P-1                                     A or A2                                  0.065%
---------------------------------------------------------------------------------------------------------------
Level 3                                     Level 3
-------                                     -------
Lower  than Level 2 but at least A-1        Lower than Level 2 but at least
or P-1                                      A- or A3                                 0.080%
---------------------------------------------------------------------------------------------------------------
Level 4                                     Level 4
-------                                     -------
Lower than Level 3 but at least A-2         Lower than Level 3 but at least
and P-2                                     BBB+ or Baa1                             0.100%
---------------------------------------------------------------------------------------------------------------
Level 5                                     Level 5
-------                                     -------
Lower than Level 4                          Lower than Level 4                       0.150%
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                       2
<PAGE>

          "Applicable Utilization Fee"  means, as to any Borrower, for each date
           --------------------------
     on which the aggregate principal amount of the Advances exceeds 25% of the
     aggregate Commitments, a percentage per annum determined by reference to
     the Public Debt Rating of such Borrower in effect on such date as set forth
     below:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Public Debt Rating                          Public Debt Rating                       Applicable
(Short Term Rating)                         (Long Term Rating)                       Utilization Fee
S&P/Moody's                                 S&P/Moody's
---------------------------------------------------------------------------------------------------------------
<S>                                         <C>                                      <C>
Level 1                                     Level 1
-------                                     -------
A-1+ and P-1                                A+ or A1                                 0.050%
---------------------------------------------------------------------------------------------------------------
Level 2                                     Level 2
-------                                     -------
Lower  than Level 1 but at least A-1        Lower than Level 1 but at least
and P-1                                     A or A2                                  0.050%
---------------------------------------------------------------------------------------------------------------
Level 3                                     Level 3
-------                                     -------
Lower  than Level 2 but at least A-1        Lower than Level 2 but at least
or P-1                                      A- or A3                                 0.100%
---------------------------------------------------------------------------------------------------------------
Level 4                                     Level 4
-------                                     -------
Lower than Level 3 but at least A-2         Lower than Level 3 but at least
and P-2                                     BBB+ or Baa1                             0.125%
---------------------------------------------------------------------------------------------------------------
Level 5                                     Level 5
-------                                     -------
Lower than Level 4                          Lower than Level 4                       0.250%
---------------------------------------------------------------------------------------------------------------
</TABLE>

          "Assignment and Acceptance" means an assignment and acceptance entered
           -------------------------
     into by a Lender and an Eligible Assignee, and accepted by the Agent, in
     substantially the form of Exhibit C hereto.

          "Assuming Lender" has the meaning specified in Section 2.17(c).
           ---------------

          "Assumption Agreement" has the meaning specified in Section 2.17(c).
           --------------------

          "Base Rate" means a fluctuating interest rate per annum in effect from
           ---------
     time to time, which rate per annum shall at all times be equal to the
     highest of:

          (a) the rate of interest announced publicly by Citibank in New
          York, New York, from time to time, as Citibank's base rate;

          (b) the sum (adjusted to the nearest 1/4 of 1% or, if there
          is no nearest 1/4 of 1%, to the next higher 1/4 of 1%) of (i) 1/2 of
          1% per annum, plus (ii) the rate obtained by dividing (A) the latest
                        ----
          three-week moving average of secondary market morning offering rates
          in the United States for three-month certificates of deposit of major
          United States money market banks, such three-week moving average
          (adjusted to the basis of a year of 360 days) being determined weekly
          on each Monday (or, if such day is not a Business Day, on the next
          succeeding Business Day) for the three-week period ending on the
          previous Friday by Citibank on the basis of such rates reported by
          certificate of deposit dealers to and published by the Federal Reserve
          Bank of New York or, if such publication shall be suspended or
          terminated, on the basis of quotations for such rates received by
          Citibank from three New York certificate of deposit dealers of
          recognized standing selected by Citibank, by (B) a percentage equal to
          100% minus the average of the daily percentages specified during such
          three-week period by the Board of Governors of the Federal Reserve
          System (or any successor) for determining the maximum reserve
          requirement (including, but not limited to, any emergency,
          supplemental or other marginal reserve requirement) for Citibank with
          respect to liabilities consisting of or including (among other
          liabilities) three-month U.S. dollar non-personal time deposits in the
          United States, plus (iii) the average during such three-week period of
                         ----
          the annual assessment rates estimated by Citibank for determining the
          then

                                       3
<PAGE>

     current annual assessment payable by Citibank to the Federal Deposit
     Insurance Corporation (or any successor) for insuring U.S. dollar deposits
     of Citibank in the United States; and

                (c)  1/2 of one percent per annum above the Federal Funds Rate.

          "Base Rate Advance" means an Advance that bears interest as provided
           -----------------
     in Section 2.07(a)(i).

          "Borrowing" means a Revolving Credit Borrowing or a Competitive Bid
           ---------
     Borrowing.

          "Business Day" means a day of the year on which banks are not required
           ------------
     or authorized by law to close in New York City and, if the applicable
     Business Day relates to any Eurodollar Rate Advances, on which dealings are
     carried on in the London interbank market.

          "Commitment" means as to any Lender (a) the amount set forth opposite
           ----------
     such Lender's name on the signature pages hereof, (b) if such Lender has
     become a Lender hereunder pursuant to an Assumption Agreement, the amount
     set forth in such Assumption Agreement or (c) if such Lender has entered
     into any Assignment and Acceptance, the amount set forth for such Lender in
     the Register maintained by the Agent pursuant to Section 8.07(d), as such
     amount may be reduced pursuant to Section 2.05.

          "Competitive Bid Advance" means an advance by a Lender to a Borrower
           -----------------------
     as part of a Competitive Bid Borrowing resulting from the competitive
     bidding procedure described in Section 2.03 and refers to a Fixed Rate
     Advance or a LIBO Rate Advance.

          "Competitive Bid Borrowing" means a borrowing consisting of
           -------------------------
     simultaneous Competitive Bid Advances from each of the Lenders whose offer
     to make one or more Competitive Bid Advances as part of such borrowing has
     been accepted by the Borrower under the competitive bidding procedure
     described in Section 2.03.

          "Competitive Bid Note" means a promissory note of the Borrower of a
           --------------------
     Competitive Bid Advance payable to the order of any Lender, in
     substantially the form of Exhibit A-2 hereto, evidencing the indebtedness
     of such Borrower to such Lender resulting from such Competitive Bid Advance
     made by such Lender.

          "Competitive Bid Reduction" has the meaning specified in Section 2.01.
           -------------------------

          "Confidential Information" means information that any Borrower
           ------------------------
     furnishes to the Agent or any Lender which information is non-public,
     confidential or proprietary in nature, but does not include any such
     information (a) that is or becomes generally available to the public other
     than as the result of an unauthorized disclosure by the Agent or any Lender
     or (b) that is or becomes available to the Agent or such Lender from a
     source other than a Borrower and the Agent or such Lender had no reason to
     believe that such source did not have legitimate possession of such
     information or such source was under any obligation to keep such
     information confidential.

          "Consenting Lender" has the meaning specified in Section 2.17(b).
           -----------------

          "Consolidated" refers to the consolidation of accounts in accordance
           ------------
     with GAAP.

          "Consolidated Net Worth" at any time, means the sum of the capital
           ----------------------
     stock (excluding treasury stock and capital stock subscribed for and
     unissued) and surplus (including earned surplus, capital surplus and the
     balance of the current profit and loss account not transferred to surplus)
     accounts of such Borrower and its Subsidiaries appearing on the most recent
     consolidated balance sheet of such Borrower and its Subsidiaries delivered
     pursuant to Section 5.01(f)(i) or (ii), as applicable, prepared in
     accordance with generally accepted accounting principles consistent with
     those applied in the preparation of the financial statements referred to in
     Section 4.01(e).

                                       4
<PAGE>

          "Convert", "Conversion" and "Converted" each refers to a conversion of
           -------    ----------       ---------
     Revolving Credit Advances of one Type into Revolving Credit Advances of the
     other Type pursuant to Section 2.08 or 2.09.

          "Debt" of any Person means, without duplication, (a) all indebtedness
           ----
     of such Person for borrowed money, (b) all obligations of such Person for
     the deferred purchase price of property or services (other than trade
     payables not overdue by more than 60 days incurred in the ordinary course
     of such Person's business), (c) all obligations of such Person evidenced by
     notes, bonds, debentures or other similar instruments, (d) all obligations
     of such Person created or arising under any conditional sale or other title
     retention agreement with respect to property acquired by such Person (even
     though the rights and remedies of the seller or lender under such agreement
     in the event of default are limited to repossession or sale of such
     property), (e) all obligations of such Person as lessee under leases that
     have been or should be, in accordance with GAAP, recorded as capital
     leases, (f) all obligations, contingent or otherwise, of such Person in
     respect of acceptances, letters of credit or similar extensions of credit,
     (g) all obligations of such Person in respect of Hedge Agreements, (h) all
     Debt of others referred to in clauses (a) through (g) above or clause (i)
     below guaranteed directly or indirectly in any manner by such Person, or in
     effect guaranteed directly or indirectly by such Person through an
     agreement (1) to pay or purchase such Debt or to advance or supply funds
     for the payment or purchase of such Debt, (2) to purchase, sell or lease
     (as lessee or lessor) property, or to purchase or sell services, primarily
     for the purpose of enabling the debtor to make payment of such Debt or to
     assure the holder of such Debt against loss, (3) to supply funds to or in
     any other manner invest in the debtor (including any agreement to pay for
     property or services irrespective of whether such property is received or
     such services are rendered) or (4) otherwise to assure a creditor against
     loss, and (i) all Debt referred to in clauses (a) through (h) above secured
     by (or for which the holder of such Debt has an existing right, contingent
     or otherwise, to be secured by) any Lien on property (including, without
     limitation, accounts and contract rights) owned by such Person, even though
     such Person has not assumed or become liable for the payment of such Debt.

          "Debt for Borrowed Money" of any Person means, without duplication,
           -----------------------
     (a) all indebtedness of such Person for borrowed money, (b) all obligations
     of such Person evidenced by notes, bonds, debentures or other similar
     instruments, (c) all obligations of such Person as lessee under leases that
     have been or should be, in accordance with GAAP, recorded as capital
     leases, (d) during the term of a Permitted Receivables Financing, the
     Aggregate Amount of Financing Outstanding in connection with domestic
     accounts receivable pursuant to such financing and (e) all Debt of others
     referred to in clauses (a) through (d) above guaranteed directly or
     indirectly in any manner by such Person.

          "Default" means any Event of Default or any event that would
           -------
     constitute an Event of Default but for the requirement that notice be given
     or time elapse or both.

          "Disclosed Litigation" has the meaning specified in Section 3.01(b).
           --------------------

          "Domestic Lending Office" means, with respect to any Lender, the
           -----------------------
     office of such Lender specified as its "Domestic Lending Office" opposite
     its name on Schedule I hereto or in the Assumption Agreement or the
     Assignment and Acceptance pursuant to which it became a Lender, or such
     other office of such Lender as such Lender may from time to time specify to
     the Borrowers and the Agent.

          "EDGAR" means the electronic disclosure system for the receipt,
           -----
     storage, retrieval and dissemination of public documents filed with the
     Securities and Exchange Commission.

          "Effective Date" has the meaning specified in Section 3.01.
           --------------

          "Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a Lender;
           -----------------
     and (iii) any other Person approved by the Agent and, unless an Event of
     Default has occurred and is continuing at the time any assignment is
     effected in accordance with Section 8.07, the Borrowers, such approval not
     to be unreasonably withheld or delayed; provided, however, that neither any
                                             --------  -------
     Borrower nor an Affiliate of any Borrower shall qualify as an Eligible
     Assignee.

                                       5
<PAGE>

          "Environmental Action" means any action, suit, demand, demand letter,
           --------------------
     claim, notice of non-compliance or violation, notice of liability or
     potential liability, investigation, proceeding, consent order or consent
     agreement relating to any Environmental Law, Environmental Permit or
     Hazardous Materials or arising from alleged injury or threat of injury to
     health, safety or the environment, including, without limitation, (a) by
     any governmental or regulatory authority for enforcement, cleanup, removal,
     response, remedial or other actions or damages and (b) by any governmental
     or regulatory authority or any third party for damages, contribution,
     indemnification, cost recovery, compensation or injunctive relief.

          "Environmental Law" means any federal, state, local or foreign
           -----------------
     statute, law, ordinance, rule, regulation, code, order, judgment, decree or
     written judicial policy or guidance that is publicly available, in each
     case relating to pollution or protection of the environment, health and
     safety as they relate to Hazardous Materials or natural resources,
     including, without limitation, those relating to the use, handling,
     transportation, treatment, storage, disposal, release or discharge of
     Hazardous Materials.

          "Environmental Permit" means any permit, approval, identification
           --------------------
     number, license or other authorization required under any Environmental
     Law.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
           -----
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "ERISA Affiliate" means any Person that for purposes of Title IV of
           ---------------
     ERISA is a member of any Borrower's controlled group, or under common
     control with any Borrower, within the meaning of Section 414 of the
     Internal Revenue Code.

          "ERISA Event" means (a) the occurrence of a reportable event, within
           -----------
     the meaning of Section 4043 of ERISA, with respect to any Plan unless the
     30-day notice requirement with respect to such event has been waived by the
     PBGC; (b) the application for a minimum funding waiver with respect to a
     Plan; (c) the provision by the administrator of any Plan of a notice of
     intent to terminate such Plan pursuant to Section 4041(c) of ERISA
     (including any such notice with respect to a plan amendment referred to in
     Section 4041(e) of ERISA); (d) the cessation of operations at a facility of
     any Borrower or any ERISA Affiliate in the circumstances described in
     Section 4062(e) of ERISA; (e) the withdrawal by any Borrower or any ERISA
     Affiliate from a Multiple Employer Plan during a plan year for which it was
     a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the
     conditions for the imposition of a lien under Section 302(f) of ERISA shall
     have been met with respect to any Plan; (g) the adoption of an amendment to
     a Plan requiring the provision of security to such Plan pursuant to Section
     307 of ERISA; or (h) the institution by the PBGC of proceedings to
     terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of
     any event or condition described in Section 4042 of ERISA that constitutes
     grounds for the termination of, or the appointment of a trustee to
     administer, a Plan.

          "Eurocurrency Liabilities" has the meaning assigned to that term in
           ------------------------
     Regulation D of the Board of Governors of the Federal Reserve System, as in
     effect from time to time.

          "Eurodollar Lending Office" means, with respect to any Lender, the
           -------------------------
     office of such Lender specified as its "Eurodollar Lending Office" opposite
     its name on Schedule I hereto or in the Assumption Agreement or the
     Assignment and Acceptance pursuant to which it became a Lender (or, if no
     such office is specified, its Domestic Lending Office), or such other
     office of such Lender as such Lender may from time to time specify to the
     Borrowers and the Agent.

          "Eurodollar Rate" means, for any Interest Period for each Eurodollar
           ---------------
     Rate Advance comprising part of the same Revolving Credit Borrowing, an
     interest rate per annum equal to the rate per annum (rounded upwards, if
     necessary, to the nearest 1/100 of 1%) appearing on Telerate Markets Page
     3750 (or any successor page) as the London interbank offered rate for
     deposits in U.S. dollars at approximately 11:00 A.M. (London time) two
     Business Days prior to the first day of such Interest Period for a term
     comparable to such Interest Period or, if for any reason such rate is not
     available, the average (rounded upward to the nearest whole multiple of
     1/16 of 1% per annum, if such average is not such a multiple) of the rate
     per annum at which deposits in U.S. dollars are offered by the principal
     office of each of the

                                       6
<PAGE>

     Reference Banks in London, England to prime banks in the London interbank
     market at 11:00 A.M. (London time) two Business Days before the first day
     of such Interest Period in an amount substantially equal to such Reference
     Bank's ratable share of an amount equal to such Revolving Credit Borrowing
     to be outstanding during such Interest Period and for a period equal to
     such Interest Period. If the Telerate Markets Page 3750 (or any successor
     page) is unavailable, the Eurodollar Rate for any Interest Period for each
     Advance comprising part of the same Revolving Credit Borrowing shall be
     determined by the Agent on the basis of applicable rates furnished to and
     received by the Agent from the Reference Banks two Business Days before the
     first day of such Interest Period, subject, however, to the provisions of
                                        -------  -------
     Section 2.08.

          "Eurodollar Rate Advance" means an Advance that bears interest as
           -----------------------
     provided in Section 2.07(a)(ii).

          "Eurodollar Rate Reserve Percentage" for any Interest Period for all
           ----------------------------------
     Eurodollar Rate Advances or LIBO Rate Advances comprising part of the same
     Borrowing means the reserve percentage applicable two Business Days before
     the first day of such Interest Period under regulations issued from time to
     time by the Board of Governors of the Federal Reserve System (or any
     successor) for determining the maximum reserve requirement (including,
     without limitation, any emergency, supplemental or other marginal reserve
     requirement) for a member bank of the Federal Reserve System in New York
     City with respect to liabilities or assets consisting of or including
     Eurocurrency Liabilities (or with respect to any other category of
     liabilities that includes deposits by reference to which the interest rate
     on Eurodollar Rate Advances or LIBO Rate Advances is determined) having a
     term equal to such Interest Period.

          "Events of Default" has the meaning specified in Section 6.01.
           -----------------

          "Extension Date" has the meaning specified in Section 2.17(b).
           --------------

          "Federal Funds Rate" means, for any period, a fluctuating interest
           ------------------
     rate per annum equal for each day during such period to the weighted
     average of the rates on overnight Federal funds transactions with members
     of the Federal Reserve System arranged by Federal funds brokers, as
     published for such day (or, if such day is not a Business Day, for the next
     preceding Business Day) by the Federal Reserve Bank of New York, or, if
     such rate is not so published for any day that is a Business Day, the
     average of the quotations for such day on such transactions received by the
     Agent from three Federal funds brokers of recognized standing selected by
     it.

          "Fixed Rate Advances" has the meaning specified in Section 2.03(a)(i).
           -------------------

          "Funded Debt" at any time, means Debt for Borrowed Money in respect of
           -----------
     the Advances made to a Borrower, in the case of a Borrower, at such time
     and all other Debt for Borrowed Money that by its terms matures more than
     one year after the date of its creation or matures within one year from
     such date but is renewable or extendible, at the option of such Person, to
     a date more than one year after such date or arises under a revolving
     credit or similar agreement that obligates the lender or lenders to extend
     credit during a period of more than one year after such date as set forth
     in the then most recent financial statements of such Borrower and its
     Subsidiaries delivered pursuant to Section 5.01(f)(i) or (ii), as
     applicable, prepared in accordance with generally accepted accounting
     principles consistent with those applied in preparation of the financial
     statements referred to in Section 4.01(e).

          "GAAP" has the meaning specified in Section 1.03.
           ----

          "Hazardous Materials" means (a) petroleum and petroleum products,
           -------------------
     byproducts or breakdown products, radioactive materials, asbestos-
     containing materials, polychlorinated biphenyls and radon gas and (b) any
     other chemicals, materials or substances designated, classified or
     regulated as hazardous or toxic or as a pollutant or contaminant under any
     Environmental Law.

                                       7
<PAGE>

          "Hedge Agreements" means interest rate swap, cap or collar agreements,
           ----------------
     interest rate future or option contracts, currency swap agreements,
     currency future or option contracts and other similar agreements.

          "Information Memorandum" means the information memorandum dated July
           ----------------------
     11, 2000 (including all exhibits and attachments thereto) used by the Agent
     in connection with the syndication of the Commitments, as up-dated from
     time to time by any subsequent filings by either Borrower with the
     Securities and Exchange Commission.

          "Interest Period" means, for each Eurodollar Rate Advance comprising
           ---------------
     part of the same Revolving Credit Borrowing and each LIBO Rate Advance
     comprising part of the same Competitive Bid Borrowing, the period
     commencing on the date of such Eurodollar Rate Advance or LIBO Rate Advance
     or the date of the Conversion of any Base Rate Advance into such Eurodollar
     Rate Advance and ending on the last day of the period selected by the
     relevant Borrower pursuant to the provisions below and, thereafter, with
     respect to Eurodollar Rate Advances, each subsequent period commencing on
     the last day of the immediately preceding Interest Period and ending on the
     last day of the period selected by the such Borrower pursuant to the
     provisions below.  The duration of each such Interest Period shall be one,
     two, three or six months or, if available to all Lenders, nine months, as
     the relevant Borrower may, upon notice received by the Agent not later than
     11:00 A.M. (New York City time) on the third Business Day prior to the
     first day of such Interest Period, select; provided, however, that:
                                                --------  -------

               (i) the Borrowers may not select any Interest Period that ends
          after the Termination Date;

               (ii) Interest Periods commencing on the same date for Eurodollar
          Rate Advances comprising part of the same Revolving Credit Borrowing
          or for LIBO Rate Advances comprising part of the same Competitive Bid
          Borrowing shall be of the same duration;

               (iii) whenever the last day of any Interest Period would
          otherwise occur on a day other than a Business Day, the last day of
          such Interest Period shall be extended to occur on the next succeeding
          Business Day, provided, however, that, if such extension would cause
                        --------  -------
          the last day of such Interest Period to occur in the next following
          calendar month, the last day of such Interest Period shall occur on
          the next preceding Business Day; and

               (iv) whenever the first day of any Interest Period occurs on the
          last day of a calendar month or on a day of an initial calendar month
          for which there is no numerically corresponding day in the calendar
          month that succeeds such initial calendar month by the number of
          months equal to the number of months in such Interest Period, such
          Interest Period shall end on the last Business Day of such succeeding
          calendar month.

          "Internal Revenue Code" means the Internal Revenue Code of 1986, as
           ---------------------
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "Lenders" means the Initial Lenders, each Assuming Lender that shall
           -------
     become a party hereto pursuant to Section 2.17 and each Person that shall
     become a party hereto pursuant to Section 2.11, Section 2.12 or Section
     8.07.

          "Leverage Ratio" of a Borrower means the ratio of Consolidated Funded
           --------------
     Debt of such Borrower and its Subsidiaries to the sum of Consolidated
     Funded Debt of such Borrower and its Subsidiaries plus Consolidated Net
                                                       ----
     Worth.

          "LIBO Rate" means, for any Interest Period for all LIBO Rate Advances
           ---------
     comprising part of the same Competitive Bid Borrowing, an interest rate per
     annum equal to the rate per annum (rounded upward to the nearest 1/100 of
     1%) appearing on Telerate Markets Page 3750 (or any successor page) as the
     London interbank offered rate for deposits in U.S. dollars at approximately
     11:00 A.M. (London time) two

                                       8
<PAGE>

     Business Days prior to the first day of such Interest Period for a term
     comparable to such Interest Period or, if for any reason such rate is not
     available, the average (rounded upward to the nearest whole multiple of
     1/16 of 1% per annum, if such average is not such a multiple) of the rate
     per annum at which deposits in U.S. dollars are offered by the principal
     office of each of the Reference Banks in London, England to prime banks in
     the London interbank market at 11:00 A.M. (London time) two Business Days
     before the first day of such Interest Period in an amount substantially
     equal to the amount that would be the Reference Banks' respective ratable
     shares of such Borrowing if such Borrowing were to be a Revolving Credit
     Borrowing to be outstanding during such Interest Period and for a period
     equal to such Interest Period. If the Telerate Markets Page 3750 (or any
     successor page) is unavailable, the LIBO Rate for any Interest Period for
     each LIBO Rate Advance comprising part of the same Competitive Bid
     Borrowing shall be determined by the Agent on the basis of applicable rates
     furnished to and received by the Agent from the Reference Banks two
     Business Days before the first day of such Interest Period, subject,
                                                                 -------
     however, to the provisions of Section 2.08.
     -------

          "LIBO Rate Advance" has the meaning specified in Section 2.03(a)(i).
           -----------------

          "Lien" means any lien, security interest or other charge or
           ----
     encumbrance of any kind, or any other type of preferential arrangement
     having the effect of security, including, without limitation, the lien or
     retained security title of a conditional vendor.

          "Long Term Rating" has the meaning assigned in the definition of
           ----------------
     "Public Debt Rating".

          "Material Adverse Change" means any material adverse change in the
           -----------------------
     financial condition or results of operations of either Borrower or either
     Borrower and its Consolidated Subsidiaries taken as a whole.

          "Material Adverse Effect" means a material adverse effect on (a) the
           -----------------------
     financial condition or results of operations of either Borrower or either
     Borrower and its Consolidated Subsidiaries taken as a whole or (b) the
     ability of either Borrower to perform its obligations under this Agreement
     or any Note to which it is a party.

          "Material Subsidiary" of either Borrower means, at any time, a
           -------------------
     domestic Consolidated Subsidiary of such Borrower having (i) at least 10%
     of the total Consolidated assets of such Borrower and its Subsidiaries
     (determined as of the last day of the most recent fiscal quarter of such
     Borrower) or (ii) at least 10% of the Consolidated net sales of such
     Borrower and its Subsidiaries for the twelve month period ending on the
     last day of the most recent fiscal quarter of such Borrower.

          "Monsanto Effective Date" has the meaning specified in Section 3.02.
           -----------------------

          "Moody's" means Moody's Investors Service, Inc.
           -------

          "Multiemployer Plan" means a multiemployer plan, as defined in Section
           ------------------
     4001(a)(3) of ERISA, to which any Borrower or any ERISA Affiliate is making
     or accruing an obligation to make contributions, or has within any of the
     preceding five plan years made or accrued an obligation to make
     contributions.

          "Multiple Employer Plan" means a single employer plan, as defined in
           ----------------------
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
     Borrower or any ERISA Affiliate and at least one Person other than the
     Borrowers and the ERISA Affiliates or (b) was so maintained and in respect
     of which any Borrower or any ERISA Affiliate could have liability under
     Section 4064 or 4069 of ERISA in the event such plan has been or were to be
     terminated.

          "Net Asset Transfer" means the transfer by Pharmacia to Monsanto of,
           ------------------
     among other things, certain assets and liabilities comprising the
     agricultural business of Pharmacia, as more particularly described in the
     Information Memorandum.

                                       9
<PAGE>

          "Non-Consenting Lender" has the meaning specified in Section 2.17(b).
           ---------------------

          "Note" means a Revolving Credit Note or a Competitive Bid Note.
           ----

          "Notice of Revolving Credit Borrowing" has the meaning specified in
           ------------------------------------
     Section 2.02(a).

          "Notice of Competitive Bid Borrowing" has the meaning specified in
           -----------------------------------
     Section 2.03(a).

          "PBGC" means the Pension Benefit Guaranty Corporation (or any
           ----
     successor).

          "Permitted Receivables Financing"  means any financing pursuant to
           -------------------------------
     which the Borrower or any Subsidiary of the Borrower may sell, convey, or
     otherwise transfer to a Receivables Subsidiary or any other Person, or
     grant a security interest in, any accounts receivable (and related assets)
     of the Borrower or such Subsidiary, provided that such financing shall be
     on customary market terms and shall be with limited or no recourse to the
     Borrower and its Subsidiaries (other than the Receivables Subsidiary)
     except to the extent customary for such transactions.

          "Person" means an individual, partnership, corporation (including a
           ------
     business trust), joint stock company, trust, unincorporated association,
     joint venture, limited liability company or other entity, or a government
     or any political subdivision or agency thereof.

          "Plan" means a Single Employer Plan or a Multiple Employer Plan.
           ----

          "Public Debt Rating" means, as to any Borrower as of any date, the
           ------------------
     lowest rating that has been most recently announced by either S&P or
     Moody's, as the case may be, for any class of non-credit enhanced long-term
     senior unsecured debt issued by such Borrower (its "Long Term Rating"), or,
                                                         ----------------
     if such Borrower does not have in effect a rating for non-credit enhanced
     long-term senior unsecured debt, the lowest rating that has been most
     recently announced by either S&P or Moody's, as the case may, be for such
     Borrower's commercial paper (its "Short Term Rating").  For purposes of the
                                       -----------------
     foregoing, (a) if only one of S&P and Moody's shall have in effect a Public
     Debt Rating, the Applicable Margin, the Applicable Percentage and the
     Applicable Utilization Fee shall be determined by reference to the
     available rating; (b) if neither S&P nor Moody's shall have in effect a
     Public Debt Rating, the Applicable Margin, the Applicable Percentage and
     the Applicable Utilization Fee will be set in accordance with Level 3 under
     the definition of "Applicable Margin", "Applicable Percentage" or
                        -----------------    ---------------------
     "Applicable Utilization Fee", as the case may be; (c) if the ratings
     ---------------------------
     established by S&P and Moody's shall fall within different levels, the
     Applicable Margin, the Applicable Percentage and the Applicable Utilization
     Fee shall be based upon the higher rating; (d) if any rating established by
     S&P or Moody's shall be changed, such change shall be effective as of the
     date on which such change is first announced publicly by the rating agency
     making such change; and (e) if S&P or Moody's shall change the basis on
     which ratings are established, each reference to the Public Debt Rating
     announced by S&P or Moody's, as the case may be, shall refer to the then
     equivalent rating by S&P or Moody's, as the case may be.

          "Receivables Subsidiary" means a bankruptcy-remote, special-purpose
           ----------------------
     wholly owned Subsidiary formed in connection with a Permitted Receivables
     Financing.

          "Reference Banks" means Citibank, The Chase Manhattan Bank and
           ---------------
     Commerzbank; provided that the Borrower may at any time substitute another
                  --------
     Lender as one of the Reference Banks, but such substitution shall terminate
     after 30 days if within such period the Required Lenders shall have
     notified the Agent of their objection to such substitution.

          "Register" has the meaning specified in Section 8.07(c).
           --------

          "Required Lenders" means at any time Lenders owed more than 50% of the
           ----------------
     then aggregate unpaid principal amount of the Revolving Credit Advances
     owing to Lenders, or, if no such principal amount is then outstanding,
     Lenders having more than 50% of the Commitments.

                                       10
<PAGE>

          "Revolving Credit Advance" means an advance by a Lender to a Borrower
           ------------------------
     as part of a Revolving Credit Borrowing and refers to a Base Rate Advance
     or a Eurodollar Rate Advance (each of which shall be a "Type" of  Revolving
                                                             ----
     Credit Advance).

          "Revolving Credit Borrowing" means a borrowing consisting of
           --------------------------
     simultaneous Revolving Credit Advances of the same Type made by each of the
     Lenders pursuant to Section 2.01.

          "Revolving Credit Note" means a promissory note of a Borrower payable
           ---------------------
     to the order of any Lender, in substantially the form of Exhibit A-1
     hereto, evidencing the aggregate indebtedness of the Borrower to such
     Lender resulting from the Revolving Credit Advances made to such Borrower
     by such Lender.

          "S&P" means Standard & Poor's, a division of The McGraw-Hill
           ---
     Companies, Inc.

          "Short Term Rating" has the meaning assigned in the definition of
           -----------------
     "Public Debt Rating".

          "Single Employer Plan" means a single employer plan, as defined in
           --------------------
     Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
     Borrower or any ERISA Affiliate and no Person other than the Borrowers and
     the ERISA Affiliates or (b) was so maintained and in respect of which any
     Borrower or any ERISA Affiliate could have liability under Section 4069 of
     ERISA in the event such plan has been or were to be terminated.

          "Subsidiary" of any Person means any corporation, partnership, joint
           ----------
     venture, limited liability company, trust or estate of which (or in which)
     more than 50% of (a) the issued and outstanding capital stock having
     ordinary voting power to elect a majority of the Board of Directors of such
     corporation (irrespective of whether at the time capital stock of any other
     class or classes of such corporation shall or might have voting power upon
     the occurrence of any contingency), (b) the interest in the capital or
     profits of such limited liability company, partnership or joint venture or
     (c) the beneficial interest in such trust or estate is at the time directly
     or indirectly owned or controlled by such Person, by such Person and one or
     more of its other Subsidiaries or by one or more of such Person's other
     Subsidiaries.

          "Termination Date" means the earlier of  (a) August 7, 2001, subject
           ----------------
     to the extension thereof pursuant to Section 2.17 and (b) the date of
     termination in whole of the Commitments pursuant to Section 2.05 or 6.01;

     provided, however, that the Termination Date of any Lender that is a Non-
     --------  -------
     Consenting Lender to any requested extension pursuant to Section 2.17 shall
     be the Termination Date in effect immediately prior to the applicable
     Extension Date for all purposes of this Agreement.

          "Voting Stock" means capital stock issued by a corporation, or
           ------------
     equivalent interests in any other Person, the holders of which are
     ordinarily, in the absence of contingencies, entitled to vote for the
     election of directors (or persons performing similar functions) of such
     Person, even if the right so to vote has been suspended by the happening of
     such a contingency.

          SECTION 1.02.    Computation of Time Periods.  In this Agreement in
                           ---------------------------
the computation of periods of time from a specified date to a later specified
date, the word "from" means "from and including" and the words "to" and "until"
each mean "to but excluding".

          SECTION 1.03.    Accounting Terms.  All accounting terms not
                           ----------------
specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistent with those applied in the preparation
of the financial statements referred to in Section 4.01(e) ("GAAP").
                                                             ----

                                       11
<PAGE>

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

          SECTION 2.01.    The Revolving Credit Advances.  Each Lender severally
                           -----------------------------
agrees, on the terms and conditions hereinafter set forth, to make Revolving
Credit Advances to any Borrower from time to time on any Business Day during the
period from the Effective Date until the Termination Date in an aggregate amount
not to exceed at any time outstanding such Lender's Commitment, provided that
                                                                --------
the aggregate amount of the Commitments of the Lenders shall be deemed used from
time to time to the extent of the aggregate amount of the Competitive Bid
Advances then outstanding and such deemed use of the aggregate amount of the
Commitments shall be allocated among the Lenders ratably according to their
respective Commitments (such deemed use of the aggregate amount of the
Commitments being a "Competitive Bid Reduction"), provided, further, that no
                     -------------------------    --------  -------
Revolving Credit Advances shall be made to Monsanto until the Monsanto Effective
Date. Each Revolving Credit Borrowing shall be in an aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and shall
consist of Revolving Credit Advances of the same Type made on the same day by
the Lenders ratably according to their respective Commitments. Within the limits
of each Lender's Commitment, the Borrowers may borrow under this Section 2.01,
prepay pursuant to Section 2.10 and reborrow under this Section 2.01.

          SECTION 2.02.    Making the Revolving Credit Advances.  (a)  Each
                           ------------------------------------
Revolving Credit Borrowing shall be made on notice, given not later than 11:00
A.M. (New York City time) on the third Business Day prior to the date of the
proposed Revolving Credit Borrowing in the case of a Revolving Credit Borrowing
consisting of Eurodollar Rate Advances, or not later than 11:00 A.M. (New York
City time) on the date of the proposed Revolving Credit Borrowing in the case of
a Revolving Credit Borrowing consisting of Base Rate Advances, by the relevant
Borrower to the Agent, which shall give to each Lender prompt notice thereof by
telecopier or telex. Each such notice of a Revolving Credit Borrowing (a "Notice
                                                                          ------
of Revolving Credit Borrowing") shall be by telephone, confirmed immediately in
-----------------------------
writing, or telecopier or telex, in substantially the form of Exhibit B-1
hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type
of Advances comprising such Revolving Credit Borrowing, (iii) aggregate amount
of such Revolving Credit Borrowing, and (iv) in the case of a Revolving Credit
Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for
each such Advance. Each Lender shall, before 1:00 P.M. (New York City time) on
the date of such Revolving Credit Borrowing, make available for the account of
its Applicable Lending Office to the Agent at the Agent's Account, in same day
funds, such Lender's ratable portion of such Revolving Credit Borrowing. After
the Agent's receipt of such funds and upon fulfillment of the applicable
conditions set forth in Article III, the Agent will make such funds available to
the Borrower that requested such Revolving Credit Borrowing at the Agent's
address referred to in Section 8.02.

(b)  Anything in subsection (a) above to the contrary notwithstanding, (i) the
     Borrowers may not select Eurodollar Rate Advances for any Revolving Credit
     Borrowing if the aggregate amount of such Revolving Credit Borrowing is
     less than $15,000,000 or if the obligation of the Lenders to make
     Eurodollar Rate Advances shall then be suspended pursuant to Section 2.08
     or 2.12 and (ii) the Eurodollar Rate Advances may not be outstanding as
     part of more than six separate Revolving Credit Borrowings.

(c)  Each Notice of Revolving Credit Borrowing shall be irrevocable and binding
     on the Borrower providing such notice.  In the case of any Revolving Credit
     Borrowing that the related Notice of Revolving Credit Borrowing specifies
     is to be comprised of Eurodollar Rate Advances, such Borrower shall
     indemnify each Lender against any loss, cost or expense incurred by such
     Lender as a result of any failure to fulfill on or before the date
     specified in such Notice of Revolving Credit Borrowing for such Revolving
     Credit Borrowing the applicable conditions set forth in Article III,
     including, without limitation, any loss (excluding loss of anticipated
     profits), cost or expense incurred by reason of the liquidation or
     reemployment of deposits or other funds acquired by such Lender to fund the
     Revolving Credit Advance to be made by such Lender as part of such
     Revolving Credit Borrowing when such Revolving Credit Advance, as a result
     of such failure, is not made on such date.

(d)  Unless the Agent shall have received notice from a Lender prior to the date
     of any Revolving Credit Borrowing that such Lender will not make available
     to the Agent such Lender's ratable portion of such Revolving Credit
     Borrowing, the Agent may assume that such Lender has made such portion
     available to the Agent on the date of such Revolving Credit Borrowing in
     accordance with subsection (a) of this Section 2.02 and the Agent may, in
     reliance upon such assumption, make available to the relevant Borrower on
     such date a

                                       12
<PAGE>

     corresponding amount. If and to the extent that such Lender shall not have
     so made such ratable portion available to the Agent, such Lender and the
     Borrower that requested such Borrowing severally agree to repay to the
     Agent forthwith on demand such corresponding amount together with interest
     thereon, for each day from the date such amount is made available to such
     Borrower until the date such amount is repaid to the Agent, at (i) in the
     case of such Borrower, the interest rate applicable at the time to
     Revolving Credit Advances comprising such Revolving Credit Borrowing and
     (ii) in the case of such Lender, the Federal Funds Rate. If such Lender
     shall repay to the Agent such corresponding amount, such amount so repaid
     shall constitute such Lender's Revolving Credit Advance as part of such
     Borrowing for purposes of this Agreement.

(e)  The failure of any Lender to make the Revolving Credit Advance to be made
     by it as part of any Revolving Credit Borrowing shall not relieve any other
     Lender of its obligation, if any, hereunder to make its Revolving Credit
     Advance on the date of such Borrowing, but no Lender shall be responsible
     for the failure of any other Lender to make the Revolving Credit Advance to
     be made by such other Lender on the date of any Revolving Credit Borrowing.

          SECTION 2.03.    The Competitive Bid Advances.  (a)  Each Lender
                           ----------------------------
severally agrees that any Borrower may make Competitive Bid Borrowings under
this Section 2.03 from time to time on any Business Day during the period from
the date hereof until the date occurring 30 days prior to the Termination Date
in the manner set forth below; provided that, following the making of each
                               --------
Competitive Bid Borrowing, the aggregate amount of the Advances then outstanding
shall not exceed the aggregate amount of the Commitments of the Lenders
(computed without regard to any Competitive Bid Reduction) and provided, further
                                                               --------  -------
that no Competitive Bid Advances shall be requested by Monsanto until the
Monsanto Effective Date.

(i)  Any Borrower may request a Competitive Bid Borrowing under this Section
     2.03 by delivering to the Agent, by telecopier or telex, a notice of a
     Competitive Bid Borrowing (a "Notice of Competitive Bid Borrowing"), in
                                   -----------------------------------
     substantially the form of Exhibit B-2 hereto, specifying therein the
     requested (v) date of such proposed Competitive Bid Borrowing, (w)
     aggregate amount of such proposed Competitive Bid Borrowing, (x) in the
     case of a Competitive Bid Borrowing consisting of LIBO Rate Advances,
     Interest Period, or in the case of a Competitive Bid Borrowing consisting
     of Fixed Rate Advances, maturity date for repayment of each Fixed Rate
     Advance to be made as part of such Competitive Bid Borrowing (which
     maturity date may not be earlier than the date occurring 30 days after the
     date of such Competitive Bid Borrowing or later than the Termination Date),
     (y) interest payment date or dates relating thereto, and (z) other terms
     (if any) to be applicable to such Competitive Bid Borrowing, not later than
     10:00 A.M. (New York City time) (A) at least one Business Day prior to the
     date of the proposed Competitive Bid Borrowing, if such Borrower shall
     specify in the Notice of Competitive Bid Borrowing that the rates of
     interest to be offered by the Lenders shall be fixed rates per annum (the
     Advances comprising any such Competitive Bid Borrowing being referred to
     herein as "Fixed Rate Advances") and (B) at least five Business Days prior
                -------------------
     to the date of the proposed Competitive Bid Borrowing, if such Borrower
     shall instead specify in the Notice of Competitive Bid Borrowing that the
     rates of interest be offered by the Lenders are to be based on the LIBO
     Rate (the Advances comprising such Competitive Bid Borrowing being referred
     to herein as "LIBO Rate Advances").  Each Notice of Competitive Bid
                   ------------------
     Borrowing shall be irrevocable and binding on the Borrower giving such
     Notice of Competitive Bid Borrowing.  The Agent shall in turn promptly
     notify each Lender of each request for a Competitive Bid Borrowing received
     by it from a Borrower by sending such Lender a copy of the related Notice
     of Competitive Bid Borrowing.

(ii) Each Lender may, if, in its sole discretion, it elects to do so,
     irrevocably offer to make one or more Competitive Bid Advances to the
     Borrower requesting such proposed Competitive Bid Borrowing as part of such
     proposed Competitive Bid Borrowing at a rate or rates of interest specified
     by such Lender in its sole discretion, by notifying the Agent (which shall
     give prompt notice thereof to the relevant Borrower), before 9:30 A.M. (New
     York City time) on the date of such proposed Competitive Bid Borrowing, in
     the case of a Competitive Bid Borrowing consisting of Fixed Rate Advances
     and before 10:00 A.M. (New York City time) three Business Days before the
     date of such proposed Competitive Bid Borrowing, in the case of a
     Competitive Bid Borrowing consisting of LIBO Rate Advances, of the minimum
     amount and maximum amount of each Competitive Bid Advance which such Lender
     would be willing to make as part of such proposed Competitive Bid Borrowing
     (which amounts may, subject to the

                                       13
<PAGE>

     proviso to the first sentence of this Section 2.03(a), exceed such Lender's
     Commitment, if any), the rate or rates of interest therefor and such
     Lender's Applicable Lending Office with respect to such Competitive Bid
     Advance; provided that if the Agent in its capacity as a Lender shall, in
              --------
     its sole discretion, elect to make any such offer, it shall notify the
     relevant Borrower of such offer at least 30 minutes before the time and on
     the date on which notice of such election is to be given to the Agent by
     the other Lenders. If any Lender shall elect not to make such an offer,
     such Lender shall so notify the Agent, before 10:00 A.M. (New York City
     time) on the date on which notice of such election is to be given to the
     Agent by the other Lenders, and such Lender shall not be obligated to, and
     shall not, make any Competitive Bid Advance as part of such Competitive Bid
     Borrowing; provided that the failure by any Lender to give such notice
                --------
     shall not cause such Lender to be obligated to make any Competitive Bid
     Advance as part of such proposed Competitive Bid Borrowing.

(iii) The Borrower requesting such proposed Competitive Bid Borrowing shall, in
     turn, before 10:30 A.M. (New York City time) on the date of such proposed
     Competitive Bid Borrowing, in the case of a Competitive Bid Borrowing
     consisting of Fixed Rate Advances and before 11:00 A.M. (New York City
     time) three Business Days before the date of such proposed Competitive Bid
     Borrowing, in the case of a Competitive Bid Borrowing consisting of LIBO
     Rate Advances, either:

               (x) cancel such Competitive Bid Borrowing by giving the Agent
          notice to that effect, or

               (y) accept one or more of the offers made by any Lender or
          Lenders pursuant to paragraph (ii) above, in its sole discretion, by
          giving notice to the Agent of the amount of each Competitive Bid
          Advance (which amount shall be equal to or greater than the minimum
          amount, and equal to or less than the maximum amount, notified to the
          relevant Borrower by the Agent on behalf of such Lender for such
          Competitive Bid Advance pursuant to paragraph (ii) above) to be made
          by each Lender as part of such Competitive Bid Borrowing, and reject
          any remaining offers made by Lenders pursuant to paragraph (ii) above
          by giving the Agent notice to that effect.  The relevant Borrower
          shall accept the offers made by any Lender or Lenders to make
          Competitive Bid Advances in order of the lowest to the highest rates
          of interest offered by such Lenders.  If two or more Lenders have
          offered the same interest rate, the amount to be borrowed at such
          interest rate will be allocated among such Lenders in proportion to
          the amount that each such Lender offered at such interest rate.

(iv) If the relevant Borrower notifies the Agent that such Competitive Bid
     Borrowing is cancelled pursuant to paragraph (iii)(x) above, the Agent
     shall give prompt notice thereof to the Lenders and such Competitive Bid
     Borrowing shall not be made.

(v)  If the relevant Borrower accepts one or more of the offers made by any
     Lender or Lenders pursuant to paragraph (iii)(y) above, the Agent shall in
     turn promptly notify (A) each Lender that has made an offer as described in
     paragraph (ii) above, of the date and aggregate amount of such Competitive
     Bid Borrowing and whether or not any offer or offers made by such Lender
     pursuant to paragraph (ii) above have been accepted by such Borrower, (B)
     each Lender that is to make a Competitive Bid Advance as part of such
     Competitive Bid Borrowing, of the amount of each Competitive Bid Advance to
     be made by such Lender as part of such Competitive Bid Borrowing, and (C)
     each Lender that is to make a Competitive Bid Advance as part of such
     Competitive Bid Borrowing, upon receipt, that the Agent has received forms
     of documents appearing to fulfill the applicable conditions set forth in
     Article III.  Each Lender that is to make a Competitive Bid Advance as part
     of such Competitive Bid Borrowing shall, before 12:00 noon (New York City
     time) on the date of such Competitive Bid Borrowing specified in the notice
     received from the Agent pursuant to clause (A) of the preceding sentence or
     any later time when such Lender shall have received notice from the Agent
     pursuant to clause (C) of the preceding sentence, make available for the
     account of its Applicable Lending Office to the Agent at the Agent's
     Account, in same day funds, such Lender's portion of such Competitive Bid
     Borrowing.  Upon fulfillment of the applicable conditions set forth in
     Article III and after receipt by the Agent of such funds, the Agent will
     make such funds available to the relevant Borrower at the Agent's address
     referred to in Section 8.02.  Promptly after each Competitive Bid Borrowing
     the Agent will notify each Lender of the amount of the Competitive Bid

                                       14
<PAGE>

     Borrowing, the consequent Competitive Bid Reduction and the dates upon
     which such Competitive Bid Reduction commenced and will terminate.

(vi) If the relevant Borrower notifies the Agent that it accepts one or more of
     the offers made by any Lender or Lenders pursuant to paragraph (iii)(y)
     above, such notice of acceptance shall be irrevocable and binding on such
     Borrower.  Such Borrower shall indemnify each Lender against any loss, cost
     or expense incurred by such Lender as a result of any failure to fulfill on
     or before the date specified in the related Notice of Competitive Bid
     Borrowing for such Competitive Bid Borrowing the applicable conditions set
     forth in Article III, including, without limitation, any loss (excluding
     loss of anticipated profits), cost or expense incurred by reason of the
     liquidation or reemployment of deposits or other funds acquired by such
     Lender to fund the Competitive Bid Advance to be made by such Lender as
     part of such Competitive Bid Borrowing when such Competitive Bid Advance,
     as a result of such failure, is not made on such date.

(b)  Each Competitive Bid Borrowing shall be in an aggregate amount of
     $10,000,000 or an integral multiple of $1,000,000 in excess thereof and,
     following the making of each Competitive Bid Borrowing, the Borrowers shall
     be in compliance with the limitation set forth in the proviso to the first
     sentence of subsection (a) above.

(c)  Within the limits and on the conditions set forth in this Section 2.03, the
     Borrowers may from time to time borrow under this Section 2.03, repay or
     prepay pursuant to subsection (d) below, and reborrow under this Section
     2.03, provided that a Competitive Bid Borrowing shall not be made within
           --------
     three Business Days of the date of any other Competitive Bid Borrowing.

(d)  Each Borrower shall repay to the Agent for the account of each Lender that
     has made a Competitive Bid Advance to such Borrower, on the maturity date
     of each Competitive Bid Advance (such maturity date being that specified by
     such Borrower for repayment of such Competitive Bid Advance in the related
     Notice of Competitive Bid Borrowing delivered pursuant to subsection (a)(i)
     above and provided in the Competitive Bid Note evidencing such Competitive
     Bid Advance), the then unpaid principal amount of such Competitive Bid
     Advance.  No Borrower shall have any right to prepay any principal amount
     of any Competitive Bid Advance unless, and then only on the terms,
     specified by the relevant Borrower for such Competitive Bid Advance in the
     related Notice of Competitive Bid Borrowing delivered pursuant to
     subsection (a)(i) above and set forth in the Competitive Bid Note
     evidencing such Competitive Bid Advance.

(e)  Each Borrower shall pay interest on the unpaid principal amount of each
     Competitive Bid Advance made to it from the date of such Competitive Bid
     Advance to the date the principal amount of such Competitive Bid Advance is
     repaid in full, at the rate of interest for such Competitive Bid Advance
     specified by the Lender making such Competitive Bid Advance in its notice
     with respect thereto delivered pursuant to subsection (a)(ii) above,
     payable on the interest payment date or dates specified by such Borrower
     for such Competitive Bid Advance in the related Notice of Competitive Bid
     Borrowing delivered pursuant to subsection (a)(i) above, as provided in the
     Competitive Bid Note evidencing such Competitive Bid Advance.  Upon the
     occurrence and during the continuance of an Event of Default, the Borrower
     shall pay interest on the amount of unpaid principal of and interest on
     each Competitive Bid Advance owing to a Lender, payable in arrears on the
     date or dates interest is payable thereon, at a rate per annum equal at all
     times to 2% per annum above the rate per annum required to be paid on such
     Competitive Bid Advance under the terms of the Competitive Bid Note
     evidencing such Competitive Bid Advance unless otherwise agreed in such
     Competitive Bid Note.

(f)  The indebtedness of a Borrower resulting from each Competitive Bid Advance
     made to such Borrower as part of a Competitive Bid Borrowing shall be
     evidenced by a separate Competitive Bid Note of such Borrower payable to
     the order of the Lender making such Competitive Bid Advance.

          SECTION 2.04.    Fees.  (a)  Facility Fee.  The Borrowers agree to
                           ----        ------------
pay to the Agent for the account of each Lender a facility fee on the aggregate
amount of such Lender's Commitment from the Effective Date in the case of each
Initial Lender and from the later of the Effective Date and the effective date
specified in the Assumption Agreement or the Assignment and Acceptance pursuant
to which it became a Lender in the case of each other Lender until the
Termination Date at a rate per annum equal to the Applicable Percentage in
effect from time

                                       15
<PAGE>

to time, payable in arrears quarterly on the last day of each March, June,
September and December commencing September 30, 2000, and on the Termination
Date.

(b)  Agent's Fees.  The Borrowers shall pay to the Agent for its own account
     ------------
     such fees as may from time to time be agreed between the Borrowers and the
     Agent.

          SECTION 2.05.    Termination or Reduction of the Commitments.  The
                           -------------------------------------------
Borrowers shall have the right, upon at least three Business Days' notice to the
Agent, to terminate in whole or reduce ratably in part the unused portions of
the respective Commitments of the Lenders, provided that each partial reduction
                                           --------
shall be in the aggregate amount of $10,000,000 or an integral multiple of
$1,000,000 in excess thereof and provided further that the aggregate amount of
                                 -------- -------
the Commitments of the Lenders shall not be reduced to an amount that is less
than the aggregate principal amount of the Competitive Bid Advances then
outstanding.

          SECTION 2.06.    Repayment of Revolving Credit Advances.  Each
                           --------------------------------------
Borrower shall repay to the Agent for the ratable account of the Lenders on the
Termination Date the aggregate principal amount of the Revolving Credit Advances
made to such Borrower then outstanding.

          SECTION 2.07.    Interest on Revolving Credit Advances; Regulation D
                           ---------------------------------------------------
Compensation.  (a)  Scheduled Interest.  Each Borrower shall pay interest on the
------------        ------------------
unpaid principal amount of each Revolving Credit Advance made to such Borrower
owing to each Lender from the date of such Revolving Credit Advance until such
principal amount shall be paid in full, at the following rates per annum:

(i)  Base Rate Advances.  During such periods as such Revolving Credit Advance
     ------------------
     is a Base Rate Advance, a rate per annum equal at all times to the sum of
     (x) the Base Rate in effect from time to time plus (y) the Applicable
                                                   ----
     Margin in effect from time to time plus (2) the Applicable Utilization Fee,
                                        ----
     if any, in effect from time to time, payable in arrears quarterly on the
     last day of each March, June, September and December, during such periods
     and on the date such Base Rate Advance shall be Converted or paid in full.

(ii) Eurodollar Rate Advances.  During such periods as such Revolving Credit
     ------------------------
     Advance is a Eurodollar Rate Advance, a rate per annum equal at all times
     during each Interest Period for such Revolving Credit Advance to the sum of
     (x) the Eurodollar Rate for such Interest Period for such Revolving Credit
     Advance plus (y) the Applicable Margin in effect from time to time plus (z)
             ----                                                       ----
     the Applicable Utilization Fee, if any, in effect from time to time,
     payable in arrears on the last day of such Interest Period and, if such
     Interest Period has a duration of more than three months, on each day that
     occurs during such Interest Period every three months from the first day of
     such Interest Period and on the date such Eurodollar Rate Advance shall be
     Converted or paid in full.

(b)  Default Interest.  Upon the occurrence and during the continuance of an
     ----------------
     Event of Default under Section 6.01(a), each Borrower shall pay interest on
     (i) the unpaid principal amount of each Revolving Credit Advance made to it
     owing to each Lender, payable in arrears on the dates referred to in clause
     (a) above, at a rate per annum equal at all times to 2% per annum above the
     rate per annum required to be paid on such Revolving Credit Advance
     pursuant to clause (a) above and (ii) to the fullest extent permitted by
     law, the amount of any interest, fee or other amount payable hereunder that
     is not paid when due, from the date such amount shall be due until such
     amount shall be paid in full, payable in arrears on the date such amount
     shall be paid in full and on demand, at a rate per annum equal at all times
     to 2% per annum above the rate per annum required to be paid on Base Rate
     Advances pursuant to clause (a)(i) above.

(c)  Regulation D Compensation.  Each Lender that is subject to reserve
     -------------------------
     requirements of the Board of Governors of the Federal Reserve System (or
     any successor) may require the Borrowers to pay, contemporaneously with
     each payment of interest on Eurodollar Rate Advances or LIBO Rate Advances,
     additional interest on the related Eurodollar Rate Advances or LIBO Rate
     Advances, as applicable, of such Lender at the rate per annum equal to the
     excess of (i)(A) the applicable Eurodollar Rate or LIBO Rate, divided by
     (B) one minus the Eurodollar Rate Reserve Percentage over (ii) the rate
     specified in clause (i)(A).  Any Lender wishing to require payment of such
     additional interest shall so notify the Agent and the Borrowers, in which
     case such additional interest on the Eurodollar Rate Advances or LIBO Rate
     Advances, as applicable, of such Lender shall be payable to

                                       16
<PAGE>

     such Lender at the place indicated in such notice with respect to each
     Interest Period commencing after the giving of such notice.

          SECTION 2.08.    Interest Rate Determination.  (a)  Each Reference
                           ---------------------------
Bank agrees to furnish to the Agent timely information for the purpose of
determining each Eurodollar Rate and each LIBO Rate. If any one or more of the
Reference Banks shall not furnish such timely information to the Agent for the
purpose of determining any such interest rate, the Agent shall determine such
interest rate on the basis of timely information furnished by the remaining
Reference Banks. The Agent shall give prompt notice to the Borrowers and the
Lenders of the applicable interest rate determined by the Agent for purposes of
Section 2.07(a)(i) or (ii), and the rate, if any, furnished by each Reference
Bank for the purpose of determining the interest rate under Section 2.07(a)(ii).

(b)  If, with respect to any Eurodollar Rate Advances, the Required Lenders
     notify the Agent that the Eurodollar Rate for any Interest Period for such
     Advances will not adequately reflect the cost to such Required Lenders of
     making, funding or maintaining their respective Eurodollar Rate Advances
     for such Interest Period, the Agent shall forthwith so notify the Borrowers
     and the Lenders, whereupon (i) each Eurodollar Rate Advance will
     automatically, on the last day of the then existing Interest Period
     therefor, Convert into a Base Rate Advance, and (ii) the obligation of the
     Lenders to make, or to Convert Revolving Credit Advances into, Eurodollar
     Rate Advances shall be suspended until the Agent shall notify the Borrowers
     and the Lenders that the circumstances causing such suspension no longer
     exist.

(c)  If any Borrower shall fail to select the duration of any Interest Period
     for any Eurodollar Rate Advances in accordance with the provisions
     contained in the definition of "Interest Period" in Section 1.01, the Agent
     will forthwith so notify such Borrower and the Lenders and such Advances
     will automatically, on the last day of the then existing Interest Period
     therefor, Convert into Base Rate Advances.

(d)  On the date on which the aggregate unpaid principal amount of Eurodollar
     Rate Advances comprising any Borrowing shall be reduced, by payment or
     prepayment or otherwise, to less than $10,000,000, such Advances shall
     automatically Convert into Base Rate Advances.

(e)  Upon the occurrence and during the continuance of any Event of Default, (i)
     each Eurodollar Rate Advance will automatically, on the last day of the
     then existing Interest Period therefor, Convert into a Base Rate Advance
     and (ii) the obligation of the Lenders to make, or to Convert Advances
     into, Eurodollar Rate Advances shall be suspended.

(f)  If Telerate Markets Page 3750 (or any successor page) is unavailable and
     fewer than two Reference Banks furnish timely information to the Agent for
     determining the Eurodollar Rate or LIBO Rate for any Eurodollar Rate
     Advances or LIBO Rate Advances, as the case may be,

(i)  the Agent shall forthwith notify the Borrowers and the Lenders that the
     interest rate cannot be determined for such Eurodollar Rate Advances,

(ii) with respect to Eurodollar Rate Advances, each such Advance will
     automatically, on the last day of the then existing Interest Period
     therefor, Convert into a Base Rate Advance (or if such Advance is then a
     Base Rate Advance, will continue as a Base Rate Advance), and

(iii) the obligation of the Lenders to make Eurodollar Rate Advances or LIBO
     Rate Advances, or to Convert Revolving Credit Advances into, Eurodollar
     Rate Advances shall be suspended until the Agent shall notify the Borrowers
     and the Lenders that the circumstances causing such suspension no longer
     exist.

          SECTION 2.09.    Optional Conversion of Revolving Credit Advances.
                           ------------------------------------------------
Each Borrower may on any Business Day, upon notice given to the Agent not later
than 11:00 A.M. (New York City time) on the third Business Day prior to the date
of the proposed Conversion and subject to the provisions of Sections 2.08 and
2.12, Convert all Revolving Credit Advances made to it of one Type comprising
the same Borrowing into Revolving Credit Advances of the other Type; provided,
                                                                     --------
however, that any Conversion of Eurodollar Rate Advances into Base Rate Advances
-------

                                       17
<PAGE>

shall be made only on the last day of an Interest Period for such Eurodollar
Rate Advances, any Conversion of Base Rate Advances into Eurodollar Rate
Advances shall be in an amount not less than the minimum amount specified in
Section 2.02(b) and no Conversion of any Revolving Credit Advances shall result
in more separate Revolving Credit Borrowings than permitted under Section
2.02(b). Each such notice of a Conversion shall, within the restrictions
specified above, specify (i) the date of such Conversion, (ii) the Revolving
Credit Advances to be Converted, and (iii) if such Conversion is into Eurodollar
Rate Advances, the duration of the initial Interest Period for each such
Advance. Each notice of Conversion shall be irrevocable and binding on the
Borrower giving such notice.

          SECTION 2.10.    Optional Prepayments of Revolving Credit Advances.
                           -------------------------------------------------
Each Borrower may, in the case of Eurodollar Rate Advances, upon at least two
Business Days' notice to the Agent and, in the case of Base Rate Advances, upon
notice to the Agent not later than 10:00 A.M. (New York City time) on the date
of the proposed prepayment, stating in each case the proposed date and aggregate
principal amount of the prepayment, and if such notice is given such Borrower
shall, prepay the outstanding principal amount of the Revolving Credit Advances
made to it comprising part of the same Revolving Credit Borrowing in whole or
ratably in part, together with accrued interest to the date of such prepayment
on the principal amount prepaid; provided, however, that (x) each partial
                                 --------  -------
prepayment shall be in an aggregate principal amount of $10,000,000 or an
integral multiple of $1,000,000 in excess thereof and (y) in the event of any
such prepayment of a Eurodollar Rate Advance, such Borrower shall be obligated
to reimburse the Lenders in respect thereof pursuant to Section 8.04(c).

          SECTION 2.11.    Increased Costs.  (a)  If, due to either (i) the
                           ---------------
introduction of or any change in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any central
bank or other governmental authority (whether or not having the force of law),
there shall be any increase in the cost to any Lender of agreeing to make or
making, funding or maintaining Eurodollar Rate Advances or LIBO Rate Advances
(excluding for purposes of this Section 2.11 any such increased costs resulting
from (i) Taxes or Other Taxes (as to which Section 2.14 shall govern) and (ii)
changes in the basis of taxation of overall net income or overall gross income
by the United States or by the foreign jurisdiction or state under the laws of
which such Lender is organized or has its Applicable Lending Office or any
political subdivision thereof), then such Lender may from time to time give
notice of such circumstances to the Borrower (with a copy of such notice to the
Agent); provided, however, that each Lender agrees, before giving any such
        --------  -------
notice, to use its reasonable efforts (consistent with its internal policy and
legal and regulatory restrictions) to designate a different Applicable Lending
Office if the making of such designation would avoid the need for, or reduce the
amount of, such increased costs and would not be disadvantageous to such Lender.
The amount sufficient to compensate such Lender in light of such increase in
costs to such Lender or any corporation controlling such Lender shall be
determined by such Lender in good faith on a basis that allocates the amounts
sufficient to compensate such Lender in light of such increase ratably among all
applicable Advances. A certificate specifying the event referred to in this
Section 2.11(a), the amount sufficient to compensate such Lender and the basis
of its calculations (which shall be reasonable), submitted in good faith to the
Borrower and the Agent by such Lender, shall be conclusive and binding for all
purposes, absent manifest error. Each Lender agrees to provide reasonably prompt
notice to the Borrower of the occurrence of any event referred to in the first
sentence of this Section 2.11(a).

(b)  If any Lender determines that compliance with any law or regulation or any
     guideline or request from any central bank or other governmental authority
     (whether or not having the force of law) after the date hereof affects or
     would affect the amount of capital required or expected to be maintained by
     such Lender or any corporation controlling such Lender and that the amount
     of such capital is increased by or based upon the existence of such
     Lender's commitment to lend hereunder and other commitments of this type,
     then, such Lender may from time to time give notice of such circumstances
     to the Borrower (with a copy of such notice to the Agent); provided,
                                                                --------
     however, that each Lender agrees, before giving any such notice, to use its
     -------
     reasonable efforts (consistent with its internal policy and legal and
     regulatory restrictions) to designate a different Applicable Lending Office
     if the making of such designation would avoid the need for, or reduce the
     amount of, the cost to such Lender of such increase in the amount of
     capital maintained by such Lender and would not be disadvantageous to such
     Lender.  The amount sufficient to compensate such Lender in light of such
     increase in capital maintained by such Lender or any corporation
     controlling such Lender shall be determined by such Lender in good faith to
     the extent that such Lender reasonably determines such increase in capital
     to be allocable to the existence of such Lender's commitment to lend
     hereunder.  A certificate specifying the event referred to in this Section
     2.11(b), the amount sufficient to compensate such Lender and the basis of
     its calculations (which shall be reasonable), submitted in good faith to
     the Borrower and the Agent by such Lender, shall be conclusive and binding
     for all purposes, absent manifest error.  Each Lender

                                       18
<PAGE>

     agrees to provide reasonably prompt notice to the Borrower of the
     occurrence of any event referred to in the first sentence of this Section
     2.11(b).

(c)  The Borrower shall, within five days of receiving a notice from any Lender
     pursuant to clause (a) or (b) of this Section 2.11, elect (and shall notify
     such Lender and the Agent of such election) to:

(i)  pay to the Agent for the account of such Lender, from time to time
     commencing on the date of notice by such Lender and as specified by such
     Lender, (A) the amount such Lender has set forth in the certificate which
     such Lender has delivered to the Borrower pursuant to clause (a) of this
     Section 2.11 or (B) the amount such Lender has set forth in the certificate
     which such Lender has delivered to the Borrower pursuant to clause (b) of
     this Section 2.11, as the case may be; or

(ii) terminate such Lender's Commitment on a date which shall be specified in
     the notice sent by the Borrower, and such Lender's Commitment shall
     terminate on such date; provided, however, that the aggregate amount of the
                             --------  -------
     Commitments of the Lenders shall not be reduced, as a result of any such
     termination, to an amount that is less than the sum of the aggregate
     principal amount of the Advances then outstanding; provided, further, that
                                                        --------  -------
     such termination shall not be effective if, after giving effect to such
     termination, the aggregate amount of the Commitments so terminated or
     assigned under this Section 2.11 and Section 2.12(b) during the term of
     this Agreement would exceed 25% of the aggregate amount of the Commitments
     as of the Effective Date; and provided further, that upon termination of a
                                   -------- -------
     Lender's Commitment under this Section 2.11(c)(ii), the Borrower shall on
     the date such termination becomes effective pay, prepay or cause to be
     prepaid the aggregate principal amount of all Advances owing to such
     Lender, together with accrued interest thereon to the date of payment of
     such principal amount, all facility fees and other fees payable to such
     Lender and all other amounts payable to such Lender under this Agreement
     (including, but not limited to, any increased costs or other additional
     amounts (computed in accordance with this Section 2.11), and any Taxes,
     incurred by such Lender prior to the effective date of such termination and
     amounts payable under Section 8.04(a)).  Upon such payments and
     prepayments, the obligations of such Lender hereunder, by the provisions
     hereof, shall be released and discharged.  Such Lender's rights under
     Sections 2.11, 2.14 and 8.04(b), and its obligations under Section 7.05,
     shall survive such release and discharge as to matters occurring prior to
     date of such termination; or

(iii) require that such Lender assign to the Borrower's designated assignee or
     assignees, in accordance with the terms of Section 8.07, all Advances then
     owing to such Lender and all rights and obligations of such Lender
     hereunder; provided that (A) each such assignment shall be either an
                --------
     assignment of all of the rights and obligations of the assigning Lender
     under this Agreement or an assignment of a portion of such rights and
     obligations made concurrently with another such assignment or assignments
     which together cover all of the rights and obligations of the assigning
     Lender under this Agreement, (B) no Lender shall be obligated to make any
     such assignment as a result of a demand by the Borrower pursuant to this
     Section 2.11(c) unless and until such Lender shall have received one or
     more payments from either the Borrower or one or more assignees in an
     aggregate amount at least equal to the aggregate outstanding principal
     amount of all Advances owing to such Lender, together with accrued interest
     thereon to the date of payment of such principal amount, all facility fees
     and other fees payable to such Lender and all other amounts payable to such
     Lender under this Agreement (including, but not limited to, any increased
     costs or other additional amounts (computed in accordance with this Section
     2.11), and any Taxes, incurred by such Lender prior to the effective date
     of such assignment and amounts payable under Section 8.04(a)) and (C) each
     such assignment shall be made pursuant to an Assignment and Acceptance;
     provided, however, that such assignment shall not be effective if, after
     --------  -------
     giving effect to such assignment, the aggregate amount of the Commitments
     so assigned or terminated under this Section 2.11 and Section 2.12(b)
     during the term of this Agreement would exceed 25% of the aggregate amount
     of the Commitments as of the Effective Date. Upon such payments and
     prepayments, the obligations of such Lender hereunder, by the provisions
     hereof, shall be released and discharged; provided, however, that such
                                               --------
     Lender's rights under Sections 2.11, 2.14 and 8.04(b), and its obligations
     under Section 7.05, shall survive such release and discharge as to matters
     occurring prior to the date of termination of such Lender's Commitment.

          SECTION 2.12.    Illegality.  (a)  Notwithstanding any other provision
                           ----------
of this Agreement, if any Lender (any such Lender being referred to herein as an
"Affected Lender") shall notify the Agent that the
 ---------------

                                       19
<PAGE>

introduction of or any change in or in the interpretation of any law or
regulation makes it unlawful, or any central bank or other governmental
authority asserts that it is unlawful, for any Lender or its Eurodollar Lending
Office to perform its obligations hereunder to make Eurodollar Rate Advances or
LIBO Rate Advances or to fund or maintain Eurodollar Rate Advances or LIBO Rate
Advances hereunder, the obligation of the Lenders to make, or to Convert
Revolving Credit Advances into, Eurodollar Rate Advances shall be suspended
until the Agent shall notify the Borrower and the Lenders that the circumstances
causing such suspension no longer exist. The Borrower's right to require an
assignment in accordance with clause (b)(ii) below shall not be effective to the
extent that Lenders representing a majority of the Commitments then outstanding
shall be "Affected Lenders".

(b)  The Borrower shall, within five days of receiving a notice from any
     Affected Lender pursuant to clause (a) of this Section 2.12, elect (and
     shall notify such Affected Lender and the Agent of such election) to:

(i)  prepay in full all Eurodollar Rate Advances or LIBO Rate Advances then
     outstanding, together with interest thereon, unless in the case of
     Eurodollar Rate Advances the Borrower, within five Business Days of written
     notice from the Agent, converts all Eurodollar Rate Advances of all Lenders
     then outstanding into Base Rate Advances in accordance with Section 2.09;
     or

(ii) require that such Affected Lender assign to the Borrower's designated
     assignee or assignees, in accordance with the terms of Section 8.07, all
     Advances then owing to such Affected Lender and all rights and obligations
     of such Affected Lender hereunder; provided that (A) each such assignment
                                        --------
     shall be either an assignment of all of the rights and obligations of the
     assigning Affected Lender under this Agreement or an assignment of a
     portion of such rights and obligations made concurrently with another such
     assignment or assignments which together cover all of the rights and
     obligations of the assigning Affected Lender under this Agreement, (B) no
     Affected Lender shall be obligated to make any such assignment as a result
     of a demand by the Borrower pursuant to this Section 2.12(b) unless and
     until such Affected Lender shall have received one or more payments from
     either the Borrower or one or more assignees in an aggregate amount at
     least equal to the aggregate outstanding principal amount of all Advances
     owing to such Affected Lender, together with accrued interest thereon to
     the date of payment of such principal amount, all facility fees and other
     fees payable to such Affected Lender and all other amounts payable to such
     Affected Lender under this Agreement (including, but not limited to, any
     increased costs or other additional amounts (computed in accordance with
     Section 2.11), and any Taxes, incurred by such Affected Lender prior to the
     effective date of such assignment and amounts payable under Section
     8.04(a)) and (C) each such assignment shall be made pursuant to an
     Assignment and Acceptance; provided, however, that such assignment shall
                                --------  -------
     not be effective if, after giving effect to such assignment, the aggregate
     amount of the Commitments so assigned or terminated under this Section
     2.12(b) and Section 2.11 during the term of this Agreement would exceed 25%
     of the aggregate amount of the Commitments as of the Effective Date.   Upon
     such payments and prepayments, the obligations of such Affected Lender
     hereunder, by the provisions hereof, shall be released and discharged;
     provided, however, that such Affected Lender's rights under Sections 2.11,
     --------  -------
     2.14 and 8.04(b), and its obligations under Section 7.05, shall survive
     such release and discharge as to matters occurring prior to the date of
     termination of such Affected Lender's Commitment.

          SECTION 2.13.    Payments and Computations.  (a)  Each Borrower shall
                           -------------------------
make each payment hereunder and under the Notes not later than 11:00 A.M. (New
York City time) on the day when due in U.S. dollars to the Agent at the Agent's
Account in same day funds. The Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal or interest or
facility fees ratably (other than amounts payable pursuant to Section 2.03,
2.11, 2.14 or 8.04(c)) to the Lenders for the account of their respective
Applicable Lending Offices, and like funds relating to the payment of any other
amount payable to any Lender to such Lender for the account of its Applicable
Lending Office, in each case to be applied in accordance with the terms of this
Agreement. Upon any Assuming Lender becoming a Lender hereunder as a result of
an extension of the Termination Date pursuant to Section 2.17, and upon the
Agent's receipt of such Lender's Assumption Agreement and recording of the
information contained therein in the Register, from and after the applicable
Extension Date, the Agent shall make all payments hereunder and under any Notes
issued in connection therewith in respect of the interest assumed thereby to the
Assuming Lender. Upon its acceptance of an Assignment and Acceptance and
recording of the information contained therein in the Register pursuant to
Section 8.07(d), from and after the effective date specified in such

                                       20
<PAGE>

Assignment and Acceptance, the Agent shall make all payments hereunder and under
the Notes in respect of the interest assigned thereby to the Lender assignee
thereunder, and the parties to such Assignment and Acceptance shall make all
appropriate adjustments in such payments for periods prior to such effective
date directly between themselves.

(b)  All computations of interest based on the Base Rate shall be made by the
     Agent on the basis of a year of 365 or 366 days, as the case may be, and
     all computations of interest based on the Eurodollar Rate or the LIBO Rate
     or the Federal Funds Rate or in respect of Fixed Rate Advances and of
     facility fees shall be made by the Agent on the basis of a year of 360
     days, in each case for the actual number of days (including the first day
     but excluding the last day) occurring in the period for which such interest
     or facility fees are payable.  Each determination by the Agent of an
     interest rate and of facility fees hereunder shall be conclusive and
     binding for all purposes, absent manifest error.

(c)  Whenever any payment hereunder or under the Notes shall be stated to be due
     on a day other than a Business Day, such payment shall be made on the next
     succeeding Business Day, and such extension of time shall in such case be
     included in the computation of payment of interest or facility fee, as the
     case may be; provided, however, that, if such extension would cause payment
                  --------  -------
     of interest on or principal of Eurodollar Rate Advances or LIBO Rate
     Advances to be made in the next following calendar month, such payment
     shall be made on the next preceding Business Day.

(d)  Unless the Agent shall have received notice from the relevant Borrower
     prior to the date on which any payment is due to the Lenders hereunder that
     such Borrower will not make such payment in full, the Agent may assume that
     such Borrower has made such payment in full to the Agent on such date and
     the Agent may, in reliance upon such assumption, cause to be distributed to
     each Lender on such due date an amount equal to the amount then due such
     Lender.  If and to the extent such Borrower shall not have so made such
     payment in full to the Agent, each Lender shall repay to the Agent
     forthwith on demand such amount distributed to such Lender together with
     interest thereon, for each day from the date such amount is distributed to
     such Lender until the date such Lender repays such amount to the Agent, at
     the Federal Funds Rate.

          SECTION 2.14.    Taxes.  (a)  Any and all payments by the Borrowers
                           -----

hereunder or under the Notes shall be made, in accordance with Section 2.13,
free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Lender and the Agent, taxes
                 ---------
imposed on its overall net income, and franchise taxes imposed on it in lieu of
net income taxes, by the jurisdiction under the laws of which such Lender or the
Agent (as the case may be) is organized or any political subdivision thereof
and, in the case of each Lender, taxes imposed on its overall net income, and
franchise taxes imposed on it in lieu of net income taxes, by the jurisdiction
of such Lender's Applicable Lending Office or any political subdivision thereof
(all such non-excluded taxes, levies, imposts, deductions, charges, withholdings
and liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as "Taxes"). If any Borrower shall be required by law to
                            -----
deduct any Taxes from or in respect of any sum payable hereunder or under any
Note to any Lender or the Agent, (i) the sum payable shall be increased as may
be necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 2.14) such Lender or
the Agent (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (ii) such Borrower shall make such
deductions and (iii) such Borrower shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable
law.

(b)  In addition, the Borrowers shall pay any present or future stamp or
     documentary taxes or any other excise or property taxes, charges or similar
     levies that arise from any payment made hereunder or under the Notes or
     from the execution, delivery or registration of, performing under, or
     otherwise with respect to, this Agreement or the Notes (hereinafter
     referred to as "Other Taxes").
                     -----------

(c)  The Borrowers shall indemnify each Lender and the Agent for and hold it
     harmless against the full amount of Taxes or Other Taxes (including,
     without limitation, taxes of any kind imposed by any jurisdiction on
     amounts payable under this Section 2.14) imposed on or paid by such Lender
     or the Agent (as the case may be) and any liability (including penalties,
     interest and expenses) arising therefrom or with respect thereto.

                                       21
<PAGE>

     This indemnification shall be made within 30 days from the date such Lender
     or the Agent (as the case may be) makes written demand therefor.

(d)  Within 30 days after the date of any payment of Taxes, the Borrower making
     such payment shall furnish to the Agent, at its address referred to in
     Section 8.02, the original or a certified copy of a receipt evidencing such
     payment.  In the case of any payment hereunder or under the Notes by or on
     behalf of such Borrower through an account or branch outside the United
     States or by or on behalf of such Borrower by a payor that is not a United
     States person, if such Borrower determines that no Taxes are payable in
     respect thereof, such Borrower shall furnish, or shall cause such payor to
     furnish, to the Agent, at such address, an opinion of counsel acceptable to
     the Agent stating that such payment is exempt from Taxes.  For purposes of
     this subsection (d) and subsection (e), the terms "United States" and
                                                        -------------
     "United States person" shall have the meanings specified in Section 7701 of
     ---------------------
     the Internal Revenue Code.

(e)  Each Lender organized under the laws of a jurisdiction outside the United
     States, on or prior to the date of its execution and delivery of this
     Agreement in the case of each Initial Lender and on the date of the
     Assumption Agreement or the Assignment and Acceptance pursuant to which it
     becomes a Lender in the case of each other Lender, and from time to time
     thereafter as requested in writing by the Borrowers (but only so long as
     such Lender remains lawfully able to do so), shall provide each of the
     Agent and the Borrowers with two original Internal Revenue Service forms W-
     8BEN or W-8ECI, as appropriate, or any successor or other form prescribed
     by the Internal Revenue Service, certifying that such Lender is exempt from
     or entitled to a reduced rate of United States withholding tax on payments
     pursuant to this Agreement or the Notes.  If the form provided by a Lender
     at the time such Lender first becomes a party to this Agreement indicates a
     United States interest withholding tax rate in excess of zero, withholding
     tax at such rate shall be considered excluded from Taxes unless and until
     such Lender provides the appropriate forms certifying that a lesser rate
     applies, whereupon withholding tax at such lesser rate only shall be
     considered excluded from Taxes for periods governed by such form; provided,
                                                                       --------
     however, that, if at the date of the Assignment and Acceptance pursuant to
     -------
     which a Lender assignee becomes a party to this Agreement, the Lender
     assignor was entitled to payments under subsection (a) in respect of United
     States withholding tax with respect to interest paid at such date, then, to
     such extent, the term Taxes shall include (in addition to withholding taxes
     that may be imposed in the future or other amounts otherwise includable in
     Taxes) United States withholding tax, if any, applicable with respect to
     the Lender assignee on such date.  If any form or document referred to in
     this subsection (e) requires the disclosure of information, other than
     information necessary to compute the tax payable and information required
     on the date hereof by Internal Revenue Service form W-8BEN or W-8ECI, that
     the Lender reasonably considers to be confidential, the Lender shall give
     notice thereof to the Borrowers and shall not be obligated to include in
     such form or document such confidential information.

(f)  For any period with respect to which a Lender has failed to provide the
     Borrowers with the appropriate form described in Section 2.14(e) (other
                                                                       -----
     than if such failure is due to a change in law occurring subsequent to the
     ----
     date on which a form originally was required to be provided, or if such
     form otherwise is not required under subsection (e) above), such Lender
     shall not be entitled to indemnification under Section 2.14(a) or (c) with
     respect to Taxes imposed by the United States by reason of such failure;

     provided, however, that should a Lender become subject to Taxes because of
     --------  -------
     its failure to deliver a form required hereunder, the Borrowers shall take
     such steps as the Lender shall reasonably request to assist the Lender to
     recover such Taxes.

(g)  Any Lender claiming any additional amounts payable pursuant to this Section
     2.14 agrees to use reasonable efforts (consistent with its internal policy
     and legal and regulatory restrictions) to change the jurisdiction of its
     Eurodollar Lending Office if the making of such a change would avoid the
     need for, or reduce the amount of, any such additional amounts that may
     thereafter accrue and would not, in the reasonable judgment of such Lender,
     be otherwise disadvantageous to such Lender.

SECTION 2.15.    Sharing of Payments, Etc.  If any Lender shall obtain any
                 ------------------------

payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Revolving Credit Advances owing to it
(other than pursuant to Section 2.11, 2.14 or 8.04(c)) in excess of its ratable
share of payments on account of the Revolving Credit Advances obtained by all
the Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Revolving Credit Advances owing to them as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion of such excess
                   --------  -------
payment is thereafter recovered from such purchasing Lender, such purchase from

                                       22
<PAGE>

each Lender shall be rescinded and such Lender shall repay to the purchasing
Lender the purchase price to the extent of such recovery together with an amount
equal to such Lender's ratable share (according to the proportion of (i) the
amount of such Lender's required repayment to (ii) the total amount so recovered
from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so recovered. Each Borrower
agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section 2.15 may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off) with respect
to such participation as fully as if such Lender were the direct creditor of
such Borrower in the amount of such participation.

          SECTION 2.16.    Use of Proceeds.  The proceeds of the Advances shall
                           ---------------
be available (and each Borrower agrees that it shall use such proceeds) solely
for general corporate purposes of such Borrower and its Subsidiaries.

          SECTION 2.17.    Extension of Termination Date.  (a)  At least 30 days
                           -----------------------------
but not more than 45 days prior to the Termination Date, the Borrowers, by
written notice to the Agent, may request an extension of the Termination Date in
effect at such time by 364 days from its then scheduled expiration. The Agent
shall promptly notify each Lender of such request, and each Lender shall in
turn, in its sole discretion, not earlier than 30 days but not later than 20
days prior to the Termination Date, notify the Borrowers and the Agent in
writing as to whether such Lender will consent to such extension, such notice to
be in substantially the form of Exhibit E hereto. If any Lender shall fail to
notify the Agent and the Borrowers in writing of its consent to any such request
for extension of the Termination Date at least 20 days prior to the Termination
Date, such Lender shall be deemed to be a Non-Consenting Lender with respect to
such request. The Agent shall notify the Borrowers in writing not later than 15
days prior to the Termination Date of the decision of the Lenders regarding the
Borrowers' request for an extension of the Termination Date.

(b)  If all the Lenders consent in writing to any such request in accordance
     with subsection (a) of this Section 2.16, the Termination Date in effect at
     such time shall, effective as at the Termination Date (the "Extension
                                                                 ---------
     Date"), be extended for 364 days; provided that on each Extension Date, the
                                       --------
     applicable conditions set forth in Article III shall be satisfied.  If less
     than all of the Lenders consent in writing to any such request in
     accordance with subsection (a) of this Section 2.16, the Termination Date
     in effect at such time shall, effective as at the applicable Extension
     Date, be extended as to those Lenders that so consented (each a "Consenting
                                                                      ----------
     Lender") but shall not be extended as to any other Lender (each a "Non-
     ------                                                             ---
     Consenting Lender").  To the extent that the Termination Date is not
     -----------------
     extended as to any Lender pursuant to this Section 2.16 and the Commitment
     of such Lender is not assumed in accordance with subsection (c) of this
     Section 2.16 on or prior to the applicable Extension Date, the Commitment
     of such Non-Consenting Lender shall automatically terminate in whole on
     such unextended Termination Date without any further notice or other action
     by the Borrowers, such Lender or any other Person; provided that such Non-
                                                        --------
     Consenting Lender's rights under Sections 2.11, 2.14 and 8.04, and its
     obligations under Section 7.05, shall survive the Termination Date for such
     Lender as to matters occurring prior to such date.  It is understood and
     agreed that no Lender shall have any obligation whatsoever to agree to any
     request made by the Borrowers for any requested extension of the
     Termination Date.

(c)  If less than all of the Lenders consent to any such request pursuant to
     subsection (a) of this Section 2.17, the Agent shall promptly so notify the
     Consenting Lenders, and each Consenting Lender may, in its sole discretion,
     give written notice to the Agent not later than 10 days prior to the
     Termination Date of the amount of the Non-Consenting Lenders' Commitments
     for which it is willing to accept an assignment.  If the Consenting Lenders
     notify the Agent that they are willing to accept assignments of Commitments
     in an aggregate amount that exceeds the amount of the Commitments of the
     Non-Consenting Lenders, such Commitments shall be allocated among the
     Consenting Lenders willing to accept such assignments in such amounts as
     are agreed between the Borrowers and the Agent.  If after giving effect to
     the assignments of Commitments described above there remains any
     Commitments of Non-Consenting Lenders, the Borrowers may arrange for one or
     more Consenting Lenders or other Eligible Assignees that agrees to an
     extension of the Termination Date (an "Assuming Lender") to assume,
                                            ---------------
     effective as of the Extension Date, any Non-Consenting Lender's Commitment
     and all of the obligations of such Non-Consenting Lender under this
     Agreement thereafter arising, without recourse to or warranty by, or
     expense to, such Non-Consenting Lender; provided, however, that the amount
                                             --------  -------
     of the Commitment of any such Assuming Lender as a result of such
     substitution shall in no event be less than $10,000,000 unless the amount
     of the

                                       23
<PAGE>

     Commitment of such Non-Consenting Lender is less than $10,000,000, in which
     case such Assuming Lender shall assume all of such lesser amount; and
     provided further that:
     -------- -------

(i)  any such Consenting Lender or Assuming Lender shall have paid to such Non-
     Consenting Lender (A) the aggregate principal amount of, and any interest
     accrued and unpaid to the effective date of the assignment on, the
     outstanding Advances, if any, of such Non-Consenting Lender plus (B) any
                                                                 ----
     accrued but unpaid facility fees owing to such Non-Consenting Lender as of
     the effective date of such assignment;

(ii) all additional costs reimbursements, expense reimbursements and indemnities
     payable to such Non-Consenting Lender, and all other accrued and unpaid
     amounts owing to such Non-Consenting Lender hereunder, as of the effective
     date of such assignment shall have been paid to such Non-Consenting Lender;
     and

(iii) with respect to any such Assuming Lender, the applicable processing and
     recordation fee required under Section 8.07(a) for such assignment shall
     have been paid by the Assuming Lender;

     provided further that such Non-Consenting Lender's rights under Sections
     -------- -------
     2.11, 2.14 and 8.04, and its obligations under Section 7.05, shall survive
     such substitution as to matters occurring prior to the date of
     substitution. At least three Business Days prior to any Extension Date, (A)
     each such Assuming Lender, if any, shall have delivered to the Borrowers
     and the Agent an assumption agreement in substantially the form of Exhibit
     D (each an "Assumption Agreement") or an Assignment and Acceptance, as
                 --------------------
     appropriate, duly executed by such Assuming Lender, such Non-Consenting
     Lender, the Borrowers and the Agent, (B) any such Consenting Lender shall
     have delivered confirmation in writing satisfactory to the Borrowers and
     the Agent as to the increase in the amount of its Commitment and (C) each
     Non-Consenting Lender being replaced pursuant to this Section 2.17 shall
     have delivered to the Agent any Note or Notes held by such Non-Consenting
     Lender. Upon the payment or prepayment of all amounts referred to in
     clauses (i), (ii) and (iii) of the immediately preceding sentence, each
     such Consenting Lender or Assuming Lender, as of the Extension Date, will
     be substituted for such Non-Consenting Lender under this Agreement and
     shall be a Lender for all purposes of this Agreement, without any further
     acknowledgment by or the consent of the other Lenders, and the obligations
     of each such Non-Consenting Lender hereunder shall, by the provisions
     hereof, be released and discharged.

(d)  If the Lenders having more than 50% of the Commitments (after giving effect
     to any assignments pursuant to subsection (b) of this Section 2.17) consent
     in writing to a requested extension (whether by execution or delivery of an
     Assumption Agreement, an Assignment and Acceptance or otherwise) not later
     than one Business Day prior to such Extension Date, the Agent shall so
     notify the Borrowers, and, upon satisfaction of the applicable conditions
     set forth in Article III, the Termination Date then in effect shall be
     extended for the additional 364-day period as described in subsection (a)
     of this Section 2.17, and all references in this Agreement, and in the
     Notes, if any, to the "Termination Date" shall, with respect to each
                            ----------------
     Consenting Lender and each Assuming Lender for such Extension Date, refer
     to the Termination Date as so extended.  Promptly following each Extension
     Date, the Agent shall notify the Lenders (including, without limitation,
     each Assuming Lender) of the extension of the scheduled Termination Date in
     effect immediately prior thereto and shall thereupon record in the Register
     the relevant information with respect to each such Consenting Lender and
     each such Assuming Lender.

          SECTION 2.18.    Evidence of Debt.  (a)  Each Lender shall maintain in
                           ----------------
accordance with its usual practice an account or accounts evidencing the
indebtedness of each Borrower to such Lender resulting from each Advance owing
to such Lender from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder in respect
of Advances. Each Borrower agrees that upon notice by any Lender to such
Borrower (with a copy of such notice to the Agent) to the effect that a Note is
required or appropriate in order for such Lender to evidence (whether for
purposes of pledge, enforcement or otherwise) the Advances owing to, or to be
made by, such Lender, such Borrower shall promptly execute and deliver to such
Lender a Note payable to the order of such Lender in a principal amount up to
the Commitment of such Lender.

(b)  The Register maintained by the Agent pursuant to Section 8.07(d) shall
     include a control account, and a subsidiary account for each Lender, in
     which accounts (taken together) shall be recorded (i) the date and amount
     of each Borrowing made hereunder, the Type of Advances comprising such
     Borrowing and, if

                                       24
<PAGE>

     appropriate, the Interest Period applicable thereto, (ii) the terms of each
     Assumption Agreement and each Assignment and Acceptance delivered to and
     accepted by it, (iii) the amount of any principal or interest due and
     payable or to become due and payable from each Borrower to each Lender
     hereunder and (iv) the amount of any sum received by the Agent from each
     Borrower hereunder and each Lender's share thereof.

(c)  Entries made in good faith by the Agent in the Register pursuant to
     subsection (b) above, and by each Lender in its account or accounts
     pursuant to subsection (a) above, shall be prima facie evidence of the
                                                ----- -----
     amount of principal and interest due and payable or to become due and
     payable from each Borrower to, in the case of the Register, each Lender
     and, in the case of such account or accounts, such Lender, under this
     Agreement, absent manifest error; provided, however, that the failure of
                                       --------  -------
     the Agent or such Lender to make an entry, or any finding that an entry is
     incorrect, in the Register or such account or accounts shall not limit or
     otherwise affect the obligations of the Borrowers under this Agreement.

                                  ARTICLE III

                     CONDITIONS TO EFFECTIVENESS AND LENDING

          SECTION 3.01.    Conditions Precedent to Effectiveness of Sections
                           -------------------------------------------------
2.01 and 2.03.  Sections 2.01 and 2.03 of this Agreement shall become effective
-------------
on and as of the first date (the "Effective Date") on which the following
                                  --------------
conditions precedent have been satisfied:

(a)  As of the Effective Date, there shall have occurred no Material Adverse
     Change since December 31, 1999, other than any changes reflected in
     subsequent filings by either Borrower with the Securities and Exchange
     Commission prior to the date hereof.

(b)  As of the Effective Date, there shall exist no action, suit, investigation,
     litigation or proceeding affecting any Borrower or any of its Consolidated
     Subsidiaries pending or, to its knowledge, threatened before any court,
     governmental agency or arbitrator that (i) could be reasonably likely to
     have a Material Adverse Effect other than the matters described on Schedule
     3.01(b) hereto (the "Disclosed Litigation") or (ii) purports and is
                          --------------------
     reasonably likely to affect the legality, validity or enforceability of
     this Agreement or any Note or the consummation of the transactions
     contemplated hereby.

(c)  As of the Effective Date, Pharmacia shall not have been notified that
     anything has come to the attention of the Lenders during the course of
     their due diligence investigation to lead them to believe that the
     Information Memorandum was or has become misleading, incorrect or
     incomplete in any material respect; without limiting the generality of the
     foregoing, the Lenders shall have been given such access to the management,
     records, books of account, contracts and properties of the Borrowers and
     their Subsidiaries as they shall have reasonably requested.

(d)  All governmental and third party consents and approvals necessary in
     connection with the transactions contemplated hereby shall have been
     obtained (without the imposition of any conditions that are not acceptable
     to the Lenders) and shall remain in effect, and no law or regulation shall
     be applicable in the reasonable judgment of the Lenders that restrains,
     prevents or imposes materially adverse conditions upon the transactions
     contemplated hereby.

(e)  The Borrowers shall have notified each Lender and the Agent in writing as
     to the proposed Effective Date.

(f)  The Borrowers shall have paid all accrued fees and expenses of the Agent
     and the Lenders (including the accrued fees and expenses of counsel to the
     Agent).

(g)  On the Effective Date, the following statements shall be true and the Agent
     shall have received for the account of each Lender a certificate signed by
     a duly authorized officer of Pharmacia, dated the Effective Date, stating
     that:

                                       25
<PAGE>

(i)  The representations and warranties of Pharmacia contained in Section 4.01
     are correct on and as of the Effective Date, and

(ii) No event has occurred and is continuing that constitutes a Default.

(h)  The Agent shall have received on or before the Effective Date the
     following, each dated such day, in form and substance satisfactory to the
     Agent and (except for the Revolving Credit Notes) in sufficient copies for
     each Lender:

(i)  The Revolving Credit Notes to the order of the Lenders to the extent
     requested by any Lender pursuant to Section 2.18.

(ii) Certified copies of the resolutions of the Board of Directors of Pharmacia
     approving this Agreement and the Revolving Credit Notes to be delivered by
     it, and of all documents evidencing other necessary corporate action and
     governmental approvals, if any, with respect to this Agreement and such
     Notes.

(iii) A certificate of the Secretary or an Assistant Secretary of Pharmacia
     certifying the names and true signatures of the officers of such Borrower
     authorized to sign this Agreement and such Notes to be delivered by it and
     the other documents to be delivered by it hereunder.

(iv) A favorable opinion of the General Counsel or Associate General Counsel of
     Pharmacia, in form and substance satisfactory to the Agent.

(v)  A favorable opinion of Shearman & Sterling, counsel for the Agent, in form
     and substance satisfactory to the Agent.

(i)  The Borrowers shall have terminated the commitments, and paid in full all
     Debt, interest, fees and other amounts outstanding, under (i) the 364-Day
     Credit Agreement dated as of August 10, 1999 among Monsanto Company, the
     lenders and agents parties thereto and Citibank, as administrative agent
     and (ii) the Five-Year Credit Agreement dated as of August 15, 1994, as
     amended and restated as of February 2, 1995 and as amended and restated as
     of February 13, 1996 among Monsanto Company, the lenders and agents parties
     thereto and Citibank, as administrative agent, and each of the Lenders that
     is a party to each such credit agreement hereby waives, upon execution of
     this Agreement the requirement of prior notice under each such credit
     agreement relating to the termination of commitments thereunder.

          SECTION 3.02.    Conditions Precedent to Monsanto Effective Date.
                           -----------------------------------------------

Sections 2.01 and 2.03 shall become effective as to Monsanto on and as of the
first date (the "Monsanto Effective Date") on which the following
                 -----------------------
conditions precedent have been satisfied:

(a)  On the Monsanto Effective Date, the following statements shall be true and
     the Agent shall have received for the account of each Lender a certificate
     signed by a duly authorized officer Monsanto, dated the Monsanto Effective
     Date, stating that:

(i)  The representations and warranties of Monsanto contained in Section 4.01
     are correct on and as of the Monsanto Effective Date, and

(ii) No event has occurred and is continuing that constitutes a Default.

(b)  The Agent shall have received on or before the Monsanto Effective Date the
     following, each dated such day, in form and substance satisfactory to the
     Agent and in sufficient copies for each Lender:

(i)  Certified copies of the resolutions of the Board of Directors of Monsanto
     approving (or ratifying) this Agreement and the Notes to be delivered by
     it, and of all documents

                                       26
<PAGE>

     evidencing other necessary corporate action and governmental approvals, if
     any, with respect to this Agreement and such Notes.

(ii) A certificate of the Secretary or an Assistant Secretary of Monsanto
     certifying the names and true signatures of the officers of Monsanto
     authorized to sign this Agreement and the Notes to be delivered by it and
     the other documents to be delivered hereunder.

(iii) A favorable opinion of the General Counsel or Associate General Counsel of
     Monsanto, in form and substance satisfactory to the Agent.

(iv) A certified, executed copy of each of the "separation agreement", the
     "corporate agreement", the "tax sharing agreement", the "intellectual
     property transfer agreement" and the "employee benefits and compensation
     allocation agreement" (as described in Monsanto's Form S-1 attached to the
     Information Memorandum) relating to the Net Asset Transfer and a copy of
     Monsanto's up-dated Form S-1 relating to the Net Asset Transfer.

(c)  The Net Asset Transfer shall have been consummated in a manner not
     materially inconsistent with the manner described in the Information
     Memorandum (and this condition shall be deemed to have been satisfied if
     the Agent or any Lender has not given notice to the contrary to the
     Borrower within 5 Business Days after actual receipt by the Agent or such
     Lender, as applicable, of the documents described in Section 3.02(b)(iv))
     and (B) that immediately after consummation of the Net Asset Transfer,
     Consolidated Net Worth of Monsanto is at least $5,750,000,000.

          SECTION 3.03.    Conditions Precedent to Each Revolving Credit
                           ---------------------------------------------
Borrowing and Extension Date.  The obligation of each Lender to make a
----------------------------
Revolving Credit Advance on the occasion of each Revolving Credit Borrowing and
each extension of Commitments pursuant to Section 2.17 shall be subject to the
conditions precedent that the Effective Date shall have occurred and on the date
of such Revolving Credit Borrowing or the applicable Extension Date the
following statements shall be true (and each of the giving of the applicable
Notice of Revolving Credit Borrowing, request for Commitment Extension and the
acceptance by the relevant Borrower of the proceeds of such Revolving Credit
Borrowing shall constitute a representation and warranty by such Borrower that
on the date of such Revolving Credit Borrowing or such Extension Date such
statements are true):

(a)  the representations and warranties contained in Section 4.01 (except in the
     case of each Revolving Credit Borrowing, the representations set forth in
     subsection (e) thereof and in subsection (f)(i) thereof) are correct on and
     as of the date of such Revolving Credit Borrowing or such Extension Date,
     before and after giving effect to such Revolving Credit Borrowing or such
     Extension Date and to the application of the proceeds therefrom, as though
     made on and as of such date, and

(b)  no event has occurred and is continuing, or would result from such
     Revolving Credit Borrowing or such Extension Date or from the application
     of the proceeds therefrom, that constitutes a Default.

          SECTION 3.04.    Conditions Precedent to Each Competitive Bid
                           --------------------------------------------
Borrowing. The obligation of each Lender that is to make a Competitive Bid
---------
Advance on the occasion of a Competitive Bid Borrowing to make such Competitive
Bid Advance as part of such Competitive Bid Borrowing is subject to the
conditions precedent that (i) the Agent shall have received the written
confirmatory Notice of Competitive Bid Borrowing with respect thereto, (ii) on
or before the date of such Competitive Bid Borrowing, but prior to such
Competitive Bid Borrowing, the Agent shall have received a Competitive Bid Note
payable to the order of such Lender for each of the one or more Competitive Bid
Advances to be made by such Lender as part of such Competitive Bid Borrowing, in
a principal amount equal to the principal amount of the Competitive Bid Advance
to be evidenced thereby and otherwise on such terms as were agreed to for such
Competitive Bid Advance in accordance with Section 2.03, and (iii) on the date
of such Competitive Bid Borrowing the following statements shall be true (and
each of the giving of the applicable Notice of Competitive Bid Borrowing and the
acceptance by the relevant Borrower of the proceeds of such Competitive Bid
Borrowing shall constitute a representation and warranty by such Borrower that
on the date of such Competitive Bid Borrowing such statements are true):

                                       27
<PAGE>

(a)  the representations and warranties contained in Section 4.01 (except the
     representations set forth in the last sentence of subsection (e) thereof
     and in subsection (f)(i) thereof) are correct on and as of the date of such
     Competitive Bid Borrowing, before and after giving effect to such
     Competitive Bid Borrowing and to the application of the proceeds therefrom,
     as though made on and as of such date, and

(b)  no event has occurred and is continuing, or would result from such
     Competitive Bid Borrowing or from the application of the proceeds
     therefrom, that constitutes a Default.

          SECTION 3.05.    Determinations Under Sections 3.01 and 3.02.  For
                           -------------------------------------------
purposes of determining compliance with the conditions specified in Section 3.01
and 3.02, each Lender shall be deemed to have consented to, approved or accepted
or to be satisfied with each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to the Lenders unless
an officer of the Agent responsible for the transactions contemplated by this
Agreement shall have received notice from such Lender prior to the date that the
Borrowers, by notice to the Lenders, designate as the proposed Effective Date or
Monsanto Effective Date, as the case may be, specifying its objection thereto.
The Agent shall promptly notify the Lenders of the occurrence of the Effective
Date or Monsanto Effective Date, as the case may be.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

          SECTION 4.01.    Representations and Warranties of the Borrowers.
                           -----------------------------------------------
Each Borrower represents and warrants as follows:

(a)  Such Borrower is a corporation duly organized, validly existing and in good
     standing under the laws of the State of Delaware.

(b)  The execution, delivery and performance by such Borrower of this Agreement
     and the Notes to be delivered by it, and the consummation of the
     transactions contemplated hereby, are within such Borrower's corporate
     powers, have been duly authorized by all necessary corporate action, and do
     not contravene (i) such Borrower's charter or by-laws or (ii) law or any
     contractual restriction binding on or affecting such Borrower.

(c)  No authorization or approval or other action by, and no notice to or filing
     with, any governmental authority or regulatory body or any other third
     party is required for the due execution, delivery and performance by such
     Borrower of this Agreement or the Notes to be delivered by it, other than
     those authorizations, approvals, notices, filings and actions that have
     been obtained, filed or taken on or before the Effective Date (in the case
     of Pharmacia) or the Monsanto Effective Date (in the case of Monsanto).

(d)  This Agreement has been, and each of the Notes to be delivered by it when
     delivered hereunder will have been, duly executed and delivered by such
     Borrower.  This Agreement is, and each of the Notes when delivered
     hereunder will be, the legal, valid and binding obligation of such Borrower
     enforceable against such Borrower in accordance with their respective
     terms.

(e)  The Consolidated balance sheet of such Borrower and its Subsidiaries as at
     December 31, 1999, and the related Consolidated statements of income and
     cash flows of such Borrower and its Subsidiaries for the fiscal year then
     ended, accompanied by an opinion of PricewaterhouseCoopers LLP or Deloitte
     & Touche LLP, as applicable, independent public accountants, and the
     Consolidated balance sheet of the Borrower and its Subsidiaries as at March
     31, 2000, and the related Consolidated statements of income and cash flows
     of such Borrower and its Subsidiaries for the three months then ended, duly
     certified by the Chief Financial Officer, Treasurer, Assistant Treasurer,
     Controller or Assistant Controller of such Borrower, copies of which have
     been furnished to each Lender, fairly present, subject, in the case of said
     balance sheet as at March 31, 2000, and said statements of income and cash
     flows for the three months then ended, to year-end audit adjustments, the
     Consolidated financial condition of such Borrower and its

                                       28
<PAGE>

     Subsidiaries as at such dates and the Consolidated results of the
     operations of such Borrower and its Subsidiaries for the periods ended on
     such dates, all in accordance with generally accepted accounting principles
     consistently applied. Except as disclosed in Pharmacia's Quarterly Report
     on Form 10-Q for the quarter ending March 31, 2000 and Monsanto's Form S-1
     filed on May 12, 2000, as amended, since December 31, 1999, there has been
     no Material Adverse Change.

(f)  There is no pending or, to the knowledge of such Borrower, threatened
     action, suit, investigation, litigation or proceeding, including, without
     limitation, any Environmental Action, affecting such Borrower or any of its
     Consolidated Subsidiaries before any court, governmental agency or
     arbitrator that (i) is reasonably likely to have a Material Adverse Effect
     (other than the Disclosed Litigation), and there has been no material
     adverse change in the status, or financial effect on such Borrower or any
     of its Consolidated Subsidiaries, of the Disclosed Litigation from that
     described on Schedule 3.01(b) hereto or (ii) purports to affect the
     legality, validity or enforceability of this Agreement, any Note or the
     consummation of the transactions contemplated hereby.

(g)  Such Borrower is not an "investment company", or a company "controlled" by
     an "investment company", within the meaning of the Investment Company Act
     of 1940, as amended.

          SECTION 4.02.    Representation and Warranty of the Lenders.  Each
                           ------------------------------------------
Lender represents and warrants that in good faith it has not and will not rely
upon any margin stock (as such term is defined in Regulation U of the Board of
Governors of the Federal Reserve System) as collateral in the making and
maintaining of its Advances hereunder.

                                   ARTICLE V

                           COVENANTS OF THE BORROWERS

          SECTION 5.01.    Affirmative Covenants.  So long as any Advance shall
                           ---------------------
remain unpaid or any Lender shall have any Commitment hereunder, each Borrower
will:

(a)  Compliance with Laws, Etc.  Comply, and cause each of its Material
     --------------------------
     Subsidiaries to comply, in all material respects, with all applicable laws,
     rules, regulations and orders, such compliance to include, without
     limitation, compliance with ERISA and Environmental Laws, except such non-
     compliance as would not have a Material Adverse Effect.

(b)  Payment of Taxes, Etc.  Pay and discharge, and cause each of its Material
     ---------------------
     Subsidiaries to pay and discharge, before the date on which penalties are
     attached thereto, all taxes, assessments and governmental charges or levies
     imposed upon it or upon its property; provided, however, that neither
                                           --------  -------
     Borrower nor any of its Material Subsidiaries shall be required to pay or
     discharge any such tax, assessment, charge or claim that is being contested
     in good faith and by proper proceedings or are not of material importance
     to the business, financial condition or results of operations of the
     Borrower and its Consolidated Subsidiaries.

(c)  Maintenance of Insurance.  Maintain, and cause each of its Material
     ------------------------
     Subsidiaries to maintain, insurance with responsible and reputable
     insurance companies or associations in such amounts and covering such risks
     as is consistent with prudent business practice.  This section shall not
     prevent the use of deductible or excess loss insurance and shall not
     prevent a Borrower or a Consolidated Subsidiary from acting as a self-
     insurer or maintaining insurance with a Subsidiary or Subsidiaries so long
     as such action is consistent with sound business practice.

(d)  Preservation of Corporate Existence, Etc.  Preserve and maintain its
     -----------------------------------------
     corporate existence, rights (charter and statutory) and franchises;
     provided, however, that each Borrower may consummate any merger or
     --------  -------
     consolidation permitted under Section 5.02(b) and provided further that
                                                       -------- -------
     neither Borrower shall be required to preserve any right or franchise if
     such Borrower shall determine that the preservation thereof is no longer
     desirable in the conduct of the business of such Borrower.

                                       29
<PAGE>

(e)  Keeping of Books.  Keep, and cause each of its Material Subsidiaries to
     ----------------
     keep, proper books of record and account, in which full and correct entries
     shall be made of all financial transactions and the assets and business of
     such Borrower and each such Material Subsidiary in accordance with
     generally accepted accounting principles in effect from time to time.

(f)  Reporting Requirements.  Furnish to the Agent, and in sufficient copies for
     ----------------------
     the Lenders (provided, however, that, in the case of the Consolidated
                  --------  -------
     balance sheet and Consolidated statements of income and cash flows referred
     to in clause (i) below, the annual audit report and accompanying
     information referred to in clause (ii) below and the reports and
     registration statements referred to in clause (iv) below, such information
     will be deemed to have been furnished to the Agent if it is readily
     available through EDGAR):

(i)  as soon as available and in any event within 60 days after the end of each
     of the first three quarters of each fiscal year of such Borrower, the
     Consolidated balance sheet of such Borrower and its Subsidiaries as of the
     end of such quarter and Consolidated statements of income and cash flows of
     such Borrower and its Subsidiaries for the period commencing at the end of
     the previous fiscal year and ending with the end of such quarter, duly
     certified (subject to year-end audit adjustments) by the Chief Financial
     Officer, Treasurer, Assistant Treasurer, Controller, Assistant Controller,
     or other authorized financial officer of such Borrower as having been
     prepared in accordance with generally accepted accounting principles and
     certificates of the Chief Financial Officer Treasurer, Assistant Treasurer,
     Controller or Assistant Controller of such Borrower as to compliance with
     the terms of this Agreement;

(ii) as soon as available and in any event within 180 days after the end of each
     fiscal year of such Borrower, a copy of the annual audit report for such
     year for such Borrower and its Subsidiaries, containing the Consolidated
     balance sheet of such Borrower and its Subsidiaries as of the end of such
     fiscal year and Consolidated statements of income and cash flows of such
     Borrower and its Subsidiaries for such fiscal year, in each case
     accompanied by an opinion acceptable to the Required Lenders by
     PricewaterhouseCoopers LLP, Deloitte & Touche LLP or other independent
     public accountants acceptable to the Required Lenders;

(iii) as soon as possible and in any event within five days after the
     determination by the Borrower of the occurrence of a Default that is
     continuing on the date of such statement, a statement of the Chief
     Financial Officer, Treasurer, Assistant Treasurer, Controller, Assistant
     Controller, or other authorized financial officer of the relevant Borrower
     setting forth details of such Default and the action that such Borrower has
     taken and proposes to take with respect thereto;

(iv) promptly after the sending or filing thereof, copies of all material
     reports that such Borrower sends to its securityholders (or any class of
     them) or its creditors (or any class of them), and copies of all reports
     and registration statements that such Borrower or any Subsidiary files with
     the Securities and Exchange Commission;

(v)  promptly after the commencement thereof, notice of all actions and
     proceedings before any court, governmental agency or arbitrator affecting
     such Borrower or any of its Subsidiaries of the type described in Section
     4.01(f); and

(vi) such other information (excluding trade secrets) respecting such Borrower
     or any of its Subsidiaries as any Lender through the Agent may from time to
     time reasonably request.

          SECTION 5.02.    Negative Covenants.  So long as any Advance shall
                           ------------------
remain unpaid or any Lender shall have any Commitment hereunder, no Borrower
will:

(a)  Liens, Etc.  Create or suffer to exist, or permit any of its Material
     ----------
     Subsidiaries to create or suffer to exist, any Lien on or with respect to
     any of its properties, whether now owned or hereafter

                                       30
<PAGE>

acquired, or assign, or permit any of its Material Subsidiaries to assign, any
right to receive income, other than:

(i)  (A) Liens for taxes, assessments, governmental charges or levies or other
     amounts owed to governmental entities other than for borrowed money; (B)
     Liens imposed by law, such as materialmen's, mechanics', carriers',
     workmen's and repairmen's Liens and other similar Liens arising in the
     ordinary course of business securing obligations that are not overdue for a
     period of more than 30 days or that are being contested in good faith; (C)
     pledges or deposits to secure obligations under workers' compensation laws
     or similar legislation or to secure public or statutory obligations; (D)
     easements, rights of way and other encumbrances on title to real property
     that do not render title to the property encumbered thereby unmarketable or
     materially adversely affect the use of such property for its present
     purposes; and (E) Liens in favor of a landlord arising in the ordinary
     course of business,

(ii) purchase money Liens upon or in any property, assets or stock acquired or
     held by the Borrower or any Material Subsidiary in the ordinary course of
     business to secure the purchase price or construction cost of such property
     or to secure Debt incurred solely for the purpose of financing the
     acquisition or construction of such property whether incurred prior or
     subsequent to such acquisition or construction, or Liens existing on such
     property at the time of its acquisition (other than any such Lien created
     in contemplation of such acquisition) or extensions, renewals or
     replacements of any of the foregoing for the same or a lesser amount,

     provided, however, that no such Lien shall extend to or cover any property
     --------  -------
     other than the property being acquired, and no such extension, renewal or
     replacement shall extend to or cover any property not theretofore subject
     to the Lien being extended, renewed or replaced,

(iii) Liens existing on the Effective Date,

(iv) (A)  assignments of the right to receive income in connection with any
     Permitted Receivables Financing and (B) other Liens that would otherwise be
     prohibited; provided that the Aggregate Amount of Financing Outstanding in
                 --------
     connection with Permitted Receivables Financings described in clause (A),
     plus the aggregate principal amount of Debt secured by Liens described in
     clause (B) at any time outstanding, shall not exceed 10% of the
     Consolidated Net Worth of such Borrower at such time,

(v)  the replacement, extension or renewal of any Lien permitted by clauses (ii)
     and (iii) above upon or in the same property theretofore subject thereto or
     the replacement, extension or renewal (without increase in the amount or
     change in any direct or contingent obligor) of the amount secured thereby,
     and

(vi) intercompany Liens.

(b)  Mergers, Etc.  Merge or consolidate with or into, or convey, transfer,
     ------------
     lease or otherwise dispose of (whether in one transaction or in a series of
     transactions) all or substantially all of its assets (whether now owned or
     hereafter acquired) to, any Person, or permit any of its Material
     Subsidiaries to do so, except that (x) any Material Subsidiary of such
     Borrower may merge or consolidate with or into, or dispose of assets to,
     any other Material Subsidiary of such Borrower or any other Subsidiary of
     such Borrower that shall become a Material Subsidiary as a result of such
     transaction and (y) any Material Subsidiary of such Borrower may merge into
     or dispose of assets to such Borrower, provided, in each case, that no
                                            --------
     Default shall have occurred and be continuing at the time of such proposed
     transaction or would result therefrom.  Nothing in this Section 5.02(b)
     shall prevent the consummation of the net asset transfer by Pharmacia to
     Monsanto consistent with the methodology described in the Information
     Memorandum.

(c)  Change in Nature of Business.  Make, or permit any of its Subsidiaries to
     ----------------------------
     make, any material change in the nature of its business taken as a whole as
     carried on at the date hereof.

                                       31
<PAGE>

          SECTION 5.03.    Financial Covenant.  So long as any Advance shall
                           ------------------
remain unpaid or any Lender shall have any Commitment hereunder, each Borrower
shall maintain at the end of each fiscal quarter of such Borrower a Leverage
Ratio of not more than 0.45:1.00.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

          SECTION 6.01.    Events of Default.  If any of the following
                           -----------------
events ("Events of Default") shall occur and be continuing:
         -----------------

(a)  Any Borrower shall fail to pay any principal of any Advance when the same
     becomes due and payable; or any Borrower shall fail to pay any interest on
     any Advance or make any other payment of fees or other amounts payable
     under this Agreement or any Note within five Business Days after the same
     becomes due and payable; or

(b)  Any representation or warranty made by any Borrower herein or by any
     Borrower (or any of its officers) in connection with this Agreement shall
     prove to have been incorrect in any material respect when made; or

(c)  (i) Any Borrower shall fail to perform or observe any term, covenant or
     agreement contained in Section 5.01(d) or (f)(iii), 5.02(a), 5.02(b) or
     5.03, or (ii) any Borrower shall fail to perform or observe any term,
     covenant or agreement contained in Section 5.01(f)(i) or (ii) if such
     failure shall remain unremedied for 5 days after written notice thereof
     shall have been given to such Borrower by the Agent or any Lender, or (iii)
     any Borrower shall fail to perform or observe any other term, covenant or
     agreement contained in this Agreement on its part to be performed or
     observed if such failure shall remain unremedied for 30 days after written
     notice thereof shall have been given to such Borrower by the Agent or any
     Lender; or

(d)  Any Borrower or any of its Material Subsidiaries shall fail to pay any
     principal of or premium or interest on any Debt that is outstanding in a
     principal or notional amount of at least $50,000,000 in the aggregate (but
     excluding Debt outstanding hereunder) of such Borrower or such Material
     Subsidiary (as the case may be), when the same becomes due and payable
     (whether by scheduled maturity, required prepayment, acceleration, demand
     or otherwise), and such failure shall continue after the applicable grace
     period, if any, specified in the agreement or instrument relating to such
     Debt; or any other event shall occur or condition shall exist under any
     agreement or instrument relating to any such Debt and shall continue after
     the applicable grace period, if any, specified in such agreement or
     instrument, if the effect of such event or condition is to accelerate the
     maturity of such Debt; or any such Debt shall be declared to be due and
     payable, or required to be prepaid or redeemed (other than by a regularly
     scheduled required prepayment or redemption), purchased or defeased, or an
     offer to prepay, redeem, purchase or defease such Debt shall be required to
     be made, in each case prior to the stated maturity thereof; or

(e)  Any Borrower or any of its Material Subsidiaries shall generally not pay
     its debts as such debts become due, or shall admit in writing its inability
     to pay its debts generally, or shall make a general assignment for the
     benefit of creditors; or any proceeding shall be instituted by or against
     any Borrower or any of its Material Subsidiaries seeking to adjudicate it a
     bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
     arrangement, adjustment, protection, relief, or composition of it or its
     debts under any law relating to bankruptcy, insolvency or reorganization or
     relief of debtors, or seeking the entry of an order for relief or the
     appointment of a receiver, trustee, custodian or other similar official for
     it or for any substantial part of its property and, in the case of any such
     proceeding instituted against it (but not instituted by it), either such
     proceeding shall remain undismissed or unstayed for a period of 30 days, or
     any of the actions sought in such proceeding (including, without
     limitation, the entry of an order for relief against, or the appointment of
     a receiver, trustee, custodian or other similar official for, it or for any
     substantial part of its property) shall occur; or any Borrower or any of
     its Material Subsidiaries shall take any corporate action to authorize any
     of the actions set forth above in this subsection (e); or

                                       32
<PAGE>

(f)  Any judgment or order for the payment of money in excess of $75,000,000 in
     the aggregate shall be rendered against any Borrower or any of its Material
     Subsidiaries and either (i) a lawsuit shall have been properly commenced by
     any creditor to enforce such judgment or order or (ii) such judgment is
     not, within 30 days after entry thereof, paid, bonded, discharged or stayed
     during appeal, or is not discharged within 30 days after the expiration of
     such stay; provided, however, that the rendering of any such judgment or
                --------  -------
     order shall not be an Event of Default under this Section 6.01(f) if and
     for so long as (i) the amount of such judgment or order is covered by a
     valid and binding policy of insurance between the defendant and the insurer
     covering payment thereof and (ii) such insurer, which shall be rated at
     least "A" by A.M. Best Company, has been notified of, and has not properly
     disputed the claim made for payment of, the amount of such judgment or
     order; or

(g)  Any Person or two or more Persons acting in concert (other than, in the
     case of Monsanto, Pharmacia and its Subsidiaries) shall have, on or after
     the date of this Agreement, acquired beneficial ownership (within the
     meaning of Rule 13d-3 of the Securities and Exchange Commission under the
     Securities Exchange Act of 1934), directly or indirectly, of Voting Stock
     of any Borrower (or other securities convertible into such Voting Stock)
     representing 25% or more of the combined voting power of all Voting Stock
     of such Borrower; or (ii) during any period of up to 24 consecutive months,
     commencing on or after the date of this Agreement, individuals who at the
     beginning of such 24-month period were directors of any Borrower (together
     with any new directors who (A) were properly and duly elected to the board
     of directors pursuant to such Borrower's bylaws by the affirmative vote of
     a majority of the remaining directors then in office or (B) were nominated
     by a majority of the remaining members of the board of directors of such
     Borrower and thereafter elected as directors by the shareholders of such
     Borrower) shall cease for any reason to constitute a majority of the board
     of directors of such Borrower; or

(h)  Any Borrower or any of its ERISA Affiliates shall incur, or, in the
     reasonable opinion of the Required Lenders, shall be reasonably likely to
     incur liability in excess of $75,000,000 in the aggregate as a result of
     one or more of the following:  (i) the occurrence of any ERISA Event,
     provided that the occurrence of the ERISA Event described in PBGC
     --------
     Regulation Sections 4040.23, 4043.29 or 4043.32 shall constitute an Event
     of Default under this Section 6.01(h) only if it is reasonably expected to
     result in a Material Adverse Effect, (ii) the partial or complete
     withdrawal of such Borrower or any of its ERISA Affiliates from a
     Multiemployer Plan; or (iii) the reorganization or termination of a
     Multiemployer Plan;

then, and in any such event, the Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrowers, declare the
obligation of each Lender to make Advances to be terminated, whereupon the same
shall forthwith terminate, and (ii) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrowers, declare the
Advances, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Advances, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrowers; provided, however, that in the
                                              --------  -------
event of an actual or deemed entry of an order for relief with respect to any
Borrower under the Federal Bankruptcy Code, (A) the obligation of each Lender to
make Advances shall automatically be terminated and (B) the Advances, all such
interest and all such amounts shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by the Borrowers.

                                  ARTICLE VII

                                    THE AGENT

          SECTION 7.01.    Authorization and Action.  Each Lender hereby
                           ------------------------
appoints and authorizes the Agent to take such action as agent on its behalf and
to exercise such powers and discretion under this Agreement as are delegated to
the Agent by the terms hereof, together with such powers and discretion as are
reasonably incidental thereto. As to any matters not expressly provided for by
this Agreement (including, without limitation, enforcement or collection of the
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, and such instructions shall be binding upon all Lenders
and all holders of Notes; provided, however, that the Agent shall not be
                          --------  -------
required to take any action that exposes the Agent to personal

                                       33
<PAGE>

liability or that is contrary to this Agreement or applicable law. The Agent
agrees to give to each Lender prompt notice of each notice given to it by any
Borrower pursuant to the terms of this Agreement.

          SECTION 7.02.    Agent's Reliance, Etc.  Neither the Agent nor any of
                           ---------------------
its directors, officers, agents or employees shall be liable for any action
taken or omitted to be taken by it or them under or in connection with this
Agreement, except for its or their own gross negligence or willful misconduct.
Without limitation of the generality of the foregoing, the Agent: (i) may treat
the Lender that made any Advance as the holder of the Debt resulting therefrom
until the Agent receives and accepts an Assumption Agreement entered into by an
Assuming Lender as provided in Section 2.17 or an Assignment and Acceptance
entered into by such Lender, as assignor, and an Eligible Assignee, as assignee,
as provided in Section 8.07; (ii) may consult with legal counsel (including
counsel for the Borrowers), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (iii) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement; (iv) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this
Agreement on the part of any Borrower or to inspect the property (including the
books and records) of any Borrower; (v) shall not be responsible to any Lender
for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; and (vi) shall incur no liability under or in respect
of this Agreement by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telecopier, telegram or telex) believed
by it to be genuine and signed or sent by the proper party or parties.

          SECTION 7.03.    Citibank and Affiliates.  With respect to its
                           -----------------------
Commitment, the Advances made by it and any Note issued to it, Citibank shall
have the same rights and powers under this Agreement as any other Lender and may
exercise the same as though it were not the Agent; and the term "Lender" or
"Lenders" shall, unless otherwise expressly indicated, include Citibank in its
individual capacity. Citibank and its Affiliates may accept deposits from, lend
money to, act as trustee under indentures of, accept investment banking
engagements from and generally engage in any kind of business with, any
Borrower, any of its Subsidiaries and any Person who may do business with or own
securities of any Borrower or any such Subsidiary, all as if Citibank were not
the Agent and without any duty to account therefor to the Lenders.

          SECTION 7.04.    Lender Credit Decision.  Each Lender acknowledges
                           ----------------------
that it has, independently and without reliance upon the Agent or any other
Lender and based on the financial statements referred to in Section 4.01 and
such other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the Agent or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.

          SECTION 7.05.    Indemnification.  The Lenders agree to indemnify the
                           ---------------
Agent (to the extent not reimbursed by the Borrowers), ratably according to the
respective principal amounts of the Revolving Credit Advances then owed to each
of them (or if no Revolving Credit Advances are at the time outstanding, ratably
according to the respective amounts of their Commitments), from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against the Agent in
any way relating to or arising out of this Agreement or any action taken or
omitted by the Agent under this Agreement (collectively, the "Indemnified
                                                              -----------
Costs"), provided that no Lender shall be liable for any portion of the
-----    --------
Indemnified Costs resulting from the Agent's gross negligence or willful
misconduct. Without limitation of the foregoing, each Lender agrees to reimburse
the Agent promptly upon demand for its ratable share of any out-of-pocket
expenses (including counsel fees) incurred by the Agent in connection with the
preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of,
or legal advice in respect of rights or responsibilities under, this Agreement,
to the extent that the Agent is not reimbursed for such expenses by the
Borrowers. In the case of any investigation, litigation or proceeding giving
rise to any Indemnified Costs, this Section 7.05 applies whether any such
investigation, litigation or proceeding is brought by the Agent, any Lender or a
third party.

                                       34
<PAGE>

          SECTION 7.06.    Successor Agent.  The Agent may resign at any time by
                           ---------------
giving written notice thereof to the Lenders and the Borrowers and may be
removed at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after
the retiring Agent's giving of notice of resignation or the Required Lenders'
removal of the retiring Agent, then the retiring Agent may, on behalf of the
Lenders, appoint a successor Agent, which shall be a commercial bank organized
under the laws of the United States of America or of any State thereof and
having a combined capital and surplus of at least $50,000,000. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, discretion, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations under this
Agreement. After any retiring Agent's resignation or removal hereunder as Agent,
the provisions of this Article VII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.

          SECTION 7.07.    Other Agents.  Each Lender hereby acknowledges that
                           ------------
neither the documentation agent nor any other Lender designated as any "Agent"
on the signature pages hereof has any liability hereunder other than in its
capacity as a Lender.

                                  ARTICLE VIII

                                  MISCELLANEOUS

          SECTION 8.01.    Amendments, Etc. No amendment or waiver of any
                           ---------------
provision of this Agreement or the Revolving Credit Notes, nor consent to any
departure by any Borrower therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Required Lenders, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no amendment, waiver
                                  --------  -------
or consent shall, unless in writing and signed by all the Lenders, do any of the
following: (a) waive any of the conditions specified in Section 3.01, (b)
increase the Commitments of the Lenders or subject the Lenders to any additional
obligations, (c) reduce the principal of, or interest on, the Revolving Credit
Advances or any fees or other amounts payable hereunder, (d) postpone any date
fixed for any payment of principal of, or interest on, the Revolving Credit
Advances or any fees or other amounts payable hereunder, (e) change the
percentage of the Commitments or of the aggregate unpaid principal amount of the
Revolving Credit Advances, or the number of Lenders, that shall be required for
the Lenders or any of them to take any action hereunder or (f) amend this
Section 8.01; provided further that no amendment, waiver or consent shall,
              -------- -------
unless in writing and signed by the Agent in addition to the Lenders required
above to take such action, affect the rights or duties of the Agent under this
Agreement or any Note; and provided further that this Section 8.01 shall not
                           -------- -------
apply to changes in Commitments pursuant to Section 2.11, Section 2.12, Section
2.17 or any other Section of this Agreement.

          SECTION 8.02.    Notices, Etc. All notices and other communications
                           ------------
provided for hereunder shall be in writing (including telecopier, telegraphic or
telex communication) and mailed, telecopied, telegraphed, telexed or delivered,
if to Pharmacia, at its address at 100 Route 206 North, Peapack, New Jersey,
07977, Attention: Alexandra Van Horne, Treasurer; if to Monsanto, at its address
at 800 N. Lindbergh Boulevard, St Louis, Missouri 63167, Attention: Chief
Financial Officer, with an information copy to the Secretary at the same
address, if to any Initial Lender, at its Domestic Lending Office specified
opposite its name on Schedule I hereto; if to any other Lender, at its Domestic
Lending Office specified in the Assignment and Acceptance pursuant to which it
became a Lender; and if to the Agent, at its address at Two Penns Way, New
Castle, Delaware 19720, Attention: Bank Loan Syndications Department; or, as to
the Borrowers or the Agent, at such other address as shall be designated by such
party in a written notice to the other parties and, as to each other party, at
such other address as shall be designated by such party in a written notice to
the Borrowers and the Agent. All such notices and communications shall, when
mailed, telecopied, telegraphed or telexed, be effective upon receipt. Delivery
by telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or the Notes or of any Exhibit hereto to be executed
and delivered hereunder shall be effective as delivery of a manually executed
counterpart thereof.

          SECTION 8.03.    No Waiver; Remedies.  No failure on the part of any
                           -------------------
Lender or the Agent to exercise, and no delay in exercising, any right hereunder
or under any Note shall operate as a waiver thereof; nor

                                       35
<PAGE>

shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

          SECTION 8.04.    Costs and Expenses.  (a)  The Borrowers agree to pay
                           ------------------
on demand all reasonable costs and expenses of the Agent in connection with the
preparation, execution, delivery, administration, modification and amendment of
this Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, (A) all due diligence, syndication (including
printing, distribution and bank meetings), transportation, computer,
duplication, appraisal, consultant, and audit expenses and (B) the reasonable
fees and expenses of counsel for the Agent with respect thereto and with respect
to advising the Agent as to its rights and responsibilities under this
Agreement. The Borrowers further agree to pay on demand all reasonable costs and
expenses of the Agent and the Lenders, if any (including, without limitation,
reasonable counsel fees and expenses), in connection with the enforcement
(whether through negotiations, legal proceedings or otherwise) of this
Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, reasonable fees and expenses of counsel for the
Agent and each Lender in connection with the enforcement of rights under this
Section 8.04(a).

(b)  Each Borrower severally agrees to indemnify and hold harmless the Agent and
     each Lender and each of their Affiliates and their officers, directors,
     employees, agents and advisors (each, an "Indemnified Party") from and
                                               -----------------
     against any and all claims, damages, losses, liabilities and expenses
     (including, without limitation, reasonable fees and expenses of counsel)
     that may be incurred by or asserted or awarded against any Indemnified
     Party, in each case arising out of or in connection with or by reason of
     (including, without limitation, in connection with any investigation,
     litigation or proceeding or preparation of a defense in connection
     therewith) (i) the actual or proposed use of the proceeds of the Advances
     by such Borrower or any of its Subsidiaries or (ii) the actual or alleged
     presence of Hazardous Materials on any property of such Borrower or any of
     its Subsidiaries or any Environmental Action relating in any way to such
     Borrower or any of its Subsidiaries, except to the extent such claim,
     damage, loss, liability or expense resulted from such Indemnified Party's
     gross negligence or willful misconduct.  In the case of an investigation,
     litigation or other proceeding to which the indemnity in this Section
     8.04(b) applies, such indemnity shall be effective whether or not such
     investigation, litigation or proceeding is brought by any Borrower, its
     directors, shareholders or creditors or an Indemnified Party or any other
     Person or any Indemnified Party is otherwise a party thereto and whether or
     not the transactions contemplated hereby are consummated.  The Borrowers
     also agree not to assert any claim against the Agent, any Lender, any of
     their Affiliates, or any of their respective directors, officers,
     employees, attorneys and agents, on any theory of liability, for special,
     indirect, consequential or punitive damages arising out of or otherwise
     relating to the Notes, this Agreement, any of the transactions contemplated
     herein or the actual or proposed use of the proceeds of the Advances.

(c)  If any payment of principal of, or Conversion of, any Eurodollar Rate
     Advance or LIBO Rate Advance is made by any Borrower to or for the account
     of a Lender other than on the last day of the Interest Period for such
     Advance, as a result of a payment or Conversion pursuant to Section 2.08(d)
     or (e), 2.10 or 2.12, acceleration of the maturity of the Advances pursuant
     to Section 6.01 or for any other reason, or by an Eligible Assignee to a
     Lender other than on the last day of the Interest Period for such Advance
     upon an assignment of rights and obligations under this Agreement pursuant
     to Section 8.07 as a result of a demand by the Borrowers pursuant to
     Section 8.07(a), the Borrowers shall, upon demand by such Lender (with a
     copy of such demand to the Agent), pay to the Agent for the account of such
     Lender any amounts required to compensate such Lender for any additional
     losses, costs or expenses that it may reasonably incur as a result of such
     payment or Conversion, including, without limitation, any loss (excluding
     loss of anticipated profits), cost or expense incurred by reason of the
     liquidation or reemployment of deposits or other funds acquired by any
     Lender to fund or maintain such Advance.

(d)  Without prejudice to the survival of any other agreement of the Borrowers
     hereunder, the agreements and obligations of the Borrowers contained in
     Sections 2.11, 2.14 and 8.04 shall survive the payment in full of
     principal, interest and all other amounts payable hereunder and under the
     Notes.

          SECTION 8.05.    Right of Set-off.  Nothing herein shall derogate any
                           ----------------
Lender's right, if any, if and to the extent payment owed to such Lender is not
made when due hereunder or under any Note held by such Lender, to set off from
time to time against any or all of a Borrower's deposit (general or special,
time or demand, provisional or final) accounts with such Lender any amount so
due. Each Lender agrees promptly to notify such

                                       36
<PAGE>

Borrower after any such set off and application made by such Lender, provided
that the failure to give such notice shall not affect the validity of such set
off and application. The rights of each Lender under this Section 8.05 are in
addition to other rights and remedies which such Lender may have.

          SECTION 8.06.    Binding Effect.  This Agreement shall become
                           --------------
effective (other than Sections 2.01 and 2.03, which shall only become effective
upon satisfaction of the conditions precedent set forth in Section 3.01) when it
shall have been executed by the Borrowers and the Agent and when the Agent shall
have been notified by each Initial Lender that such Initial Lender has executed
it and thereafter shall be binding upon and inure to the benefit of the
Borrowers, the Agent and each Lender and their respective successors and
assigns, except that the Borrowers shall not have the right to assign its rights
hereunder or any interest herein without the prior written consent of the
Lenders.

          SECTION 8.07.    Assignments and Participations.  (a)  Each Lender may
                           ------------------------------

and, if demanded by the Borrowers (following a demand by such Lender pursuant to
Section 2.11 or Section 2.12) upon at least 5 Business Days' notice to such
Lender and the Agent or if required pursuant to Section 2.17, will assign to one
or more Persons all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment,
the Revolving Credit Advances owing to it and any Revolving Credit Note or Notes
held by it, and any Competitive Bid Advances or Competitive Bid Notes held by it
required to be assigned pursuant to Section 2.11 or Section 2.12) with the
consent of the Agent and, so long as no Default has occurred and is continuing,
the Borrowers (which consent shall not unreasonably be withheld); provided,
                                                                  --------
however, that (i) each such assignment shall be of a constant, and not a
-------
varying, percentage of all rights and obligations under this Agreement (other
than any Competitive Bid Advances owing to it and any Competitive Bid Notes held
by it, except any such Competitive Bid Advances or Competitive Bid Notes
required to be assigned pursuant to Section 2.11 or Section 2.12), (ii) except
in the case of an assignment to an Affiliate of such Lender or a Person that,
immediately prior to such assignment, was a Lender or an assignment of all of a
Lender's rights and obligations under this Agreement, the amount of the
Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $10,000,000 or an
integral multiple of $1,000,000 in excess thereof, (iii) each such assignment
shall be to an Eligible Assignee, and (iv) the parties to each such assignment
shall execute and deliver to the Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with any Revolving Credit Note
subject to such assignment and a processing and recordation fee of $3,500. Upon
such execution, delivery, acceptance and recording, from and after the effective
date specified in each Assignment and Acceptance, (x) the assignee thereunder
shall be a party hereto and, to the extent that rights and obligations hereunder
have been assigned to it pursuant to such Assignment and Acceptance, have the
rights and obligations of a Lender hereunder and (y) the Lender assignor
thereunder shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to such Assignment and Acceptance, relinquish its rights
(other than its rights under Sections 2.11, 2.14 and 8.04 to the extent any
claim thereunder relates to an event arising prior to such assignment) and be
released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto).

(b)  By executing and delivering an Assignment and Acceptance, the Lender
     assignor thereunder and the assignee thereunder confirm to and agree with
     each other and the other parties hereto as follows:  (i) other than as
     provided in such Assignment and Acceptance, such assigning Lender makes no
     representation or warranty and assumes no responsibility with respect to
     any statements, warranties or representations made in or in connection with
     this Agreement or the execution, legality, validity, enforceability,
     genuineness, sufficiency or value of this Agreement or any other instrument
     or document furnished pursuant hereto; (ii) such assigning Lender makes no
     representation or warranty and assumes no responsibility with respect to
     the financial condition of any Borrower or the performance or observance by
     any Borrower of any of its obligations under this Agreement or any other
     instrument or document furnished pursuant hereto; (iii) such assignee
     confirms that it has received a copy of this Agreement, together with
     copies of the financial statements referred to in Section 4.01 and such
     other documents and information as it has deemed appropriate to make its
     own credit analysis and decision to enter into such Assignment and
     Acceptance; (iv) such assignee will, independently and without reliance
     upon the Agent, such assigning Lender or any other Lender and based on such
     documents and information as it shall deem appropriate at the time,
     continue to make its own credit decisions in taking or not taking action
     under this Agreement; (v) such assignee confirms that it is an Eligible
     Assignee; (vi) such assignee appoints and authorizes the Agent to take such

                                       37
<PAGE>

     action as agent on its behalf and to exercise such powers and discretion
     under this Agreement as are delegated to the Agent by the terms hereof,
     together with such powers and discretion as are reasonably incidental
     thereto; and (vii) such assignee agrees that it will perform in accordance
     with their terms all of the obligations that by the terms of this Agreement
     are required to be performed by it as a Lender.

(c)  The Agent shall maintain at its address referred to in Section 8.02 a copy
     of each Assumption Agreement and each Assignment and Acceptance delivered
     to and accepted by it and a register for the recordation of the names and
     addresses of the Lenders and the Commitment of, and principal amount of the
     Advances owing to, each Lender from time to time (the "Register").  The
                                                            --------
     entries in the Register shall be conclusive and binding for all purposes,
     absent manifest error, and the Borrowers, the Agent and the Lenders may
     treat each Person whose name is recorded in the Register as a Lender
     hereunder for all purposes of this Agreement.  The Register shall be
     available for inspection by the Borrowers or any Lender at any reasonable
     time and from time to time upon reasonable prior notice.

(d)  Upon its receipt of an Assignment and Acceptance executed by an assigning
     Lender and an assignee representing that it is an Eligible Assignee,
     together with any Revolving Credit Note or Notes subject to such
     assignment, the Agent shall, if such Assignment and Acceptance has been
     completed and is in substantially the form of Exhibit C hereto, (i) accept
     such Assignment and Acceptance, (ii) record the information contained
     therein in the Register and (iii) give prompt notice thereof to the
     Borrowers.

(e)  Each Lender may sell participations to one or more banks or other entities
     (other than any Borrower or any of its Affiliates) in or to all or a
     portion of its rights and obligations under this Agreement (including,
     without limitation, all or a portion of its Commitment, the Advances owing
     to it and any Note or Notes held by it); provided, however, that (i) such
                                              --------  -------
     Lender's obligations under this Agreement (including, without limitation,
     its Commitment to the Borrowers hereunder) shall remain unchanged, (ii)
     such Lender shall remain solely responsible to the other parties hereto for
     the performance of such obligations, (iii) such Lender shall remain the
     holder of any such Note for all purposes of this Agreement, (iv) the
     Borrowers, the Agent and the other Lenders shall continue to deal solely
     and directly with such Lender in connection with such Lender's rights and
     obligations under this Agreement and (v) no participant under any such
     participation shall have any right to approve any amendment or waiver of
     any provision of this Agreement or any Note or the Guaranty, or any consent
     to any departure by any Borrower therefrom, except to the extent that such
     amendment, waiver or consent would reduce the principal of, or interest on,
     the Advances or any fees or other amounts payable hereunder, in each case
     to the extent subject to such participation, or postpone any date fixed for
     any payment of principal of, or interest on, the Advances or any fees or
     other amounts payable hereunder, in each case to the extent subject to such
     participation. Upon the sale of a participation pursuant to this Section
     8.07(e), such Lender shall promptly provide notice to the Borrowers of the
     sale of a participation (other than a sale of a participation pursuant to
     Section 2.15); provided, however, that the failure by such Lender to
                    --------  -------
     provide such notice shall not invalidate the sale of such participation.

(f)  Any Lender may, in connection with any assignment or participation or
     proposed assignment or participation pursuant to this Section 8.07,
     disclose to the assignee or participant or proposed assignee or
     participant, any information relating to any Borrower furnished to such
     Lender by or on behalf of any Borrower; provided that, prior to any such
                                             --------
     disclosure, the assignee or participant or proposed assignee or participant
     shall agree to preserve the confidentiality of any Confidential Information
     relating to any Borrower received by it from such Lender; provided further
                                                               -------- -------
     that, so long as no Default has occurred and is continuing, the Borrower
     shall have consented in advance to the disclosure of any non-public
     information, such consent not to be unreasonably withheld.

(g)  Notwithstanding any other provision set forth in this Agreement, any Lender
     may at any time create a security interest in all or any portion of its
     rights under this Agreement (including, without limitation, the Advances
     owing to it and any Note held by it) in favor of any Federal Reserve Bank
     in accordance with Regulation A of the Board of Governors of the Federal
     Reserve System.

(h)  Each Lender agrees that it will not assign any right, obligation or Note,
     or sell any participation, in any manner or under any circumstances that
     would require registration, qualification or filings under the securities
     laws of the United States of America, of any state or any country.

                                       38
<PAGE>

          SECTION 8.08.    Confidentiality.  Neither the Agent nor any Lender
                           ---------------
shall disclose any Confidential Information to any other Person without the
consent of the Borrowers, other than (a) to the Agent's or such Lender's
Affiliates and their officers, directors, employees, agents and advisors and, to
the extent contemplated by Section 8.07(f), to actual or prospective assignees
and participants, and then only on a confidential basis, (b) as required by any
law, rule or regulation or judicial process, provided that the Agent or such
                                             --------
Lender, as the case may be, has notified the Borrower and has otherwise taken
reasonable steps to protect such information from any unnecessary disclosure,
and (c) as requested or required by any state, federal or foreign authority or
examiner regulating banks or banking, provided that, without prejudice to its
                                      --------
right to disclose to such examiner or regulator, the Agent and the Lenders agree
to use reasonable efforts to limit the amount of Confidential Information which
is disclosed.

          SECTION 8.09.    Governing Law.  This Agreement and the Notes shall be
                           -------------
governed by, and construed in accordance with, the laws of the State of New
York.

          SECTION 8.10.    Execution in Counterparts.  This Agreement may be
                           -------------------------
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of a manually executed
counterpart of this Agreement.

          SECTION 8.11.    Jurisdiction, Etc. (a)  Each of the parties hereto
                           -----------------
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any New York State court or federal court of
the United States of America sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the extent permitted by law,
in such federal court. Each of the parties hereto agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by
law. Nothing in this Agreement shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Agreement or
the Notes in the courts of any jurisdiction.

(b)  Each of the parties hereto irrevocably and unconditionally waives, to the
     fullest extent it may legally and effectively do so, any objection that it
     may now or hereafter have to the laying of venue of any suit, action or
     proceeding arising out of or relating to this Agreement or the Notes in any
     New York State or federal court. Each of the parties hereto hereby
     irrevocably waives, to the fullest extent permitted by law, the defense of
     an inconvenient forum to the maintenance of such action or proceeding in
     any such court.

          SECTION 8.12.    Resignation of Pharmacia as Borrower.  At any time
                           ------------------------------------
after the Monsanto Effective Date and upon the payment and performance in full
of all Pharmacia's indebtedness, liabilities and obligations under this
Agreement and the Notes, then so long as at such time no Notice of Revolving
Credit Borrowing or Notice of Competitive Bid Borrowing by Pharmacia is
outstanding and no Default has occurred and is continuing, Pharmacia may
terminate its status as a Borrower hereunder upon delivery of written notice to
such effect to the Agent (which notice the Agent shall forward promptly to the
Lenders). Thereafter, the Lenders shall have no further obligations to make any
Advances to Pharmacia and Pharmacia shall have no further obligations under this
Agreement (other than its obligations under Sections 2.11, 2.14 and 8.04 to the
extent any liability thereunder relates to an event arising prior to such
termination) and shall not be deemed to be a Borrower hereunder for any other
circumstance or purpose.

          SECTION 8.13.    Waiver of Jury Trial.  Each of the Borrowers, the
                           --------------------
Agent and the Lenders hereby irrevocably waives all right to trial by jury in
any action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to this Agreement or the Notes or the
actions of the Agent or any Lender in the negotiation, administration,
performance or enforcement thereof.

                                       39
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers thereunto duly authorized, as of the
date first above written.

                                    MONSANTO COMPANY

                                    By____________________________
                                     Title:

                                    PHARMACIA CORPORATION

                                    By____________________________
                                     Title:

                                    CITIBANK, N.A.,
                                      as Agent

                                    By____________________________
                                     Title:

                                 Initial Lenders
                                 ---------------

$126,666,666.67                     CITIBANK, N.A.

                                    By____________________________
                                     Title:

$126,666,666.67                     THE CHASE MANHATTAN BANK

                                    By____________________________
                                     Title:

$106,666,666.67                     BANK ONE, NA (MAIN OFFICE CHICAGO)

                                    By____________________________
                                     Title:

$106,666,666.67                     COMMERZBANK AG, NEW YORK AND
                                    GRAND CAYMAN BRANCHES

                                    By____________________________
                                     Title:

                                       40
<PAGE>

$73,333,333.33                      THE BANK OF TOKYO - MITSUBISHI, LTD.,
                                    CHICAGO BRANCH

                                    By____________________________
                                     Title:

$73,333,333.33                      FLEET NATIONAL BANK

                                    By____________________________
                                     Title:

$73,333,333.33                      SOCIETE GENERALE

                                    By____________________________
                                     Title:

$46,666,666.67                      BANCA COMMERCIALE ITALIANA, CHICAGO BRANCH

                                    By____________________________
                                     Title:

$33,333,333.33                      BARCLAYS BANK PLC

                                    By____________________________
                                     Title:

$33,333,333.33                      BBL INTERNATIONAL (U.K) LIMITED

                                    By____________________________
                                     Title:

$33,333,333.33                      THE BANK OF NEW YORK

                                    By____________________________
                                     Title:

$33,333,333.33                      CREDIT AGRICOLE INDOSUEZ

                                    By____________________________
                                     Title:

$33,333,333.33                      KBC BANK N.V.

                                    By____________________________
                                     Title:

                                       41
<PAGE>

$33,333,333.33                      THE NORTHERN TRUST COMPANY

                                    By____________________________
                                     Title:

$33,333,333.33                      WACHOVIA BANK, N.A.

                                    By____________________________
                                     Title:

$33,333,333.33                      WESTPAC BANKING CORPORATION

                                    By____________________________
                                     Title:

$1,000,000,000 Total of the Commitments

                                       42
<PAGE>

                                                                    SCHEDULE I -
                                                      APPLICABLE LENDING OFFICES

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Name of Initial Lender                 Domestic Lending Office                 Eurodollar Lending Office
----------------------                 -----------------------                 -------------------------
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                                     <C>
BANCA COMMERCIALE ITALIANA, CHICAGO    Banca Commerciale Italiana,             Banca Commerciale Italiana, Chicago
 BRANCH                                Chicago Branch                          Branch
                                       150 N. South LaSalle, Suite 1500        150 N. South LaSalle, Suite 1500
                                       Chicago, IL 60604                       Chicago, IL 60604
                                       Attn:  Credit Administration            Attn:  Credit Administration
                                       T:  312-992-5110                        T:  312-992-5110
                                       F:  312-992-5111                        F:  312-992-5111

--------------------------------------------------------------------------------------------------------------------
THE BANK OF NEW YORK                   The Bank of New York                    The Bank of New York
                                       101 Barclay Street                      101 Barclay Street
                                       New York, NY 10286                      New York, NY 10286
                                       Attn:  Keith Stiell                     Attn:  Keith Stiell
                                       T:  212-635-8216                        T:  212-635-8216
                                       F:  212-635-7926                        F:  212-635-7926
--------------------------------------------------------------------------------------------------------------------
BANK ONE, NA (MAIN OFFICE CHICAGO)     Bank One, NA, (Main Office Chicago)     Bank One, NA, (Main Office Chicago)
                                       Chicago, Illinois                       Chicago, Illinois
                                       ABA: 071000013                          ABA: 071000013
                                       LS2 Incoming                            LS2 Incoming
                                       481152860000                            481152860000
                                       Ref: Monsanto Co                        Ref: Monsanto Co
                                       Attn:  Ben Oliva                        Attn:  Ben Oliva
                                       Tel:  312-732-5987                      Tel:  312-732-5987
                                       Fax: 312-732-4840/3013                  Fax:  312-732-4840/3013
--------------------------------------------------------------------------------------------------------------------
THE BANK OF TOKYO-MITSUBISHI, LTD.,    The Bank of Tokyo - Mitsubishi, Ltd.,   The Bank of Tokyo - Mitsubishi,
 CHICAGO BRANCH                        Chicago Branch                          Ltd., Chicago Branch
                                       227 West Monroe Street, Suite 2300      227 West Monroe Street, Suite 2300
                                       Chicago, IL 60606                       Chicago, IL 60606
                                       Attn: Janice Hennig                     Attn: Janice Hennig
                                       Tel:  312-696-4710                      Tel:  312-696-4710
                                       Fax:  312-696-4532                      Fax:  312-696-4532
--------------------------------------------------------------------------------------------------------------------
BARCLAYS BANK PLC                      Barclays Bank PLC                       Barclays Bank PLC
                                       Mark Williams                           Mark Williams
                                       Global Services Unit                    Global Services Unit
                                       5 The North Colonnade                   5 The North Colonnade
                                       Canary Wharf                            Canary Wharf
                                       London El4 4BB                          London El4 4BB
                                       Tel:  020-7773-6436                     Tel:  020-7773-6436
                                       Fax:  020-7773-6807                     Fax:  020-7773-6807
--------------------------------------------------------------------------------------------------------------------
BBL INTERNATIONAL (U.K.) LIMITED       BBL International (U.K.) Limited        BBL International (U.K.) Limited
                                       6 Broadgate                             6 Broadgate
                                       London, EC2M 2AJ                        London, EC2M 2AJ
                                       Attn:  Credit Department                Attn:  Credit Department
                                       T:  44-171-247-5566                     T:  44-171-247-5566
                                       F:  44-171-562-0208                     F:  44-171-562-0208
--------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                                     <C>
THE CHASE MANHATTAN BANK               The Chase Manhattan Bank                The Chase Manhattan Bank
                                       270 Park Avenue, 48th Floor             270 Park Avenue, 48th Floor
                                       New York, NY 10017                      New York, NY 10017
                                       Attn:  Stephen P. Rochford              Attn:  Stephen P. Rochford
                                       T:  212-270-7275                        T:  212-270-7275
                                       F:  212-270-5135                        F:  212-270-5135
--------------------------------------------------------------------------------------------------------------------
CITIBANK, N.A.                         Citibank, N.A.                          Citibank, N.A.
                                       Two Penns Way                           Two Penns Way
                                       Suite 200                               Suite 200
                                       New Castle, DE 19720                    New Castle, DE 19720
                                       Attn: Ann Hieronimus                    Attn: Ann Hieronimus
                                       Tel:   302-894-6034                     Tel:   302-894-6034
                                       Fax:  302-894-6120                      Fax:  302-894-6120
--------------------------------------------------------------------------------------------------------------------
COMMERZBANK AG, NEW YORK AND GRAND     Commerzbank AG, Grand Cayman Branch     Commerzbank AG, Grand Cayman Branch
CAYMAN BRANCHES                        c/o New York Branch                     c/o New York Branch
                                       Two World Financial Center              Two World Financial Center
                                       New York, NY 10281-1050                 New York, NY 10281-1050
                                       Attn:  Mr. Al Caputo                    Attn:  Mr. Al Caputo
                                       Tel:  212-266-7694                      Tel:  212-266-7694
                                       Fax:  212-266-7772                      Fax:  212-266-7772
--------------------------------------------------------------------------------------------------------------------
CREDIT AGRICOLE INDOSUEZ               Credit Agricole Indosuez                Credit Agricole Indosuez
                                       55 E. Monroe Street                     55 E. Monroe Street
                                       Chicago, IL 60603                       Chicago, IL 60603
                                       Attn:  Theodore Tice                    Attn:  Theodore Tice
                                       T:  312-917-7463                        T:  312-917-7463
                                       F:  312-372-3455                        F:  312-372-3455
--------------------------------------------------------------------------------------------------------------------
FLEET NATIONAL BANK                    Fleet National Bank                     Fleet National Bank
                                       100 Federal Street MADE 10010A          100 Federal Street MADE 10010A
                                       Boston, MA 02110                        Boston, MA 02110
                                       Attn:  Lisa Gelfand - Abrams            Attn:  Lisa Gelfand - Abrams
                                       Tel:  617-434-7118                      Tel:  617-434-7118
                                       Fax:  617-434-0601                      Fax:  617-434-0601
--------------------------------------------------------------------------------------------------------------------
KBC BANK N.V.                          KBC Bank N.V.                           KBC Bank N.V.
                                       New York Branch                         New York Branch
                                       125 West 55th Street                    125 West 55th Street
                                       New York, NY 10019                      New York, NY 10019
                                       Attn:  Loan Administration              Attn:  Loan Administration
                                       T:  212-541-0657                        T:  212-541-0657
                                       F:  212-956-5581                        F:  212-956-5581
--------------------------------------------------------------------------------------------------------------------
THE NORTHERN TRUST COMPANY             The Northern Trust Company              The Northern Trust Company
                                       50 S. LaSalle                           50 S. LaSalle
                                       Chicago, IL 60675                       Chicago, IL 60675
                                       Attn:  Ms. Linda Honda                  Attn:  Ms. Linda Honda
                                       Tel:  312-444-4715                      Tel:  312-444-4715
                                       Fax:  312-630-1566                      Fax:  312-630-1566
--------------------------------------------------------------------------------------------------------------------
SOCIETE GENERALE                       Societe Generale                        Societe Generale
                                       2001 Ross Ave. Suite 4800               2001 Ross Ave. Suite 4800
                                       Dallas, TX 75201                        Dallas, TX 75201
                                       Attn:  Deanna Farhat                    Attn:  Deanna Farhat
                                       Tel:  214-979-2736                      Tel:  214-979-2736
                                       Fax:  214-754-0171                      Fax:  214-754-0171
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       2
<PAGE>

<TABLE>
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                                     <C>
WACHOVIA BANK, N.A.                    Wachovia Bank, N.A.                     Wachovia Bank, N.A.
                                       191 Peachtree Street, N.E.              191 Peachtree Street, N.E.
                                       Atlanta, GA 30303                       Atlanta, GA 30303
                                       Attn:  Walt Gillikin                    Attn:  Walt Gillikin
                                       Tel:  404-332-5747                      Tel:  404-332-5747
                                       Fax:  404-332-4136                      Fax:  404-332-4136
--------------------------------------------------------------------------------------------------------------------
WESTPAC BANKING CORPORATION            Westpac Banking Corporation             Westpac Banking Corporation
                                       575 Fifth Avenue                        575 Fifth Avenue
                                       New York, NY                            New York, NY
                                       Attn:  Susan Wildstein                  Attn:  Susan Wildstein
                                       Tel:  212-551-1960                      Tel:  212-551-1960
                                       Fax:  212-551-1998                      Fax:  212-551-1998
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       3
<PAGE>
                                                           EXHIBIT A-1 - FORM OF
                                                REVOLVING CREDIT PROMISSORY NOTE

U.S.$_______________                       Dated:  _______________, 2000

          FOR VALUE RECEIVED, the undersigned, ____________________, a Delaware
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
                  --------
____________________ (the "Lender") for the account of its Applicable Lending
                           ------
Office on the Termination Date (each as defined in the Credit Agreement referred
to below) the principal sum of U.S.$[amount of the Lender's Commitment in
figures] or, if less, the aggregate principal amount of the Revolving Credit
Advances made by the Lender to the Borrower pursuant to the 364-Day Credit
Agreement dated as of August 8, 2000 among the Borrower, the Lender and certain
other lenders parties thereto, Citibank, N.A., as Agent for the Lender and such
other lenders, Salomon Smith Barney Inc. and Chase Securities Inc., as co-lead
arrangers and co-book managers, The Chase Manhattan Bank, as syndication agent,
and Commerzbank AG New York and Grand Cayman Branches and Bank One, NA, as co-
documentation agents (as amended or modified from time to time, the "Credit
                                                                     ------
Agreement"; the terms defined therein being used herein as therein defined),
---------
outstanding on the Termination Date.

          The Borrower promises to pay interest on the unpaid principal amount
of each Revolving Credit Advance from the date of such Revolving Credit Advance
until such principal amount is paid in full, at such interest rates, and payable
at such times, as are specified in the Credit Agreement.

          Both principal and interest are payable in lawful money of the United
States of America to Citibank, N.A., as Agent, at 399 Park Avenue, New York, New
York 10043, in same day funds.  Each Revolving Credit Advance owing to the
Lender by the Borrower pursuant to the Credit Agreement, and all payments made
on account of principal thereof, shall be recorded by the Lender and, prior to
any transfer hereof, endorsed on the grid attached hereto which is part of this
Promissory Note.

          This Promissory Note is one of the Revolving Credit Notes referred to
in, and is entitled to the benefits of, the Credit Agreement.  The Credit
Agreement, among other things, (i) provides for the making of Revolving Credit
Advances by the Lender to the Borrower from time to time in an aggregate amount
not to exceed at any time outstanding the U.S. dollar amount first above
mentioned, the indebtedness of the Borrower resulting from each such Revolving
Credit Advance being evidenced by this Promissory Note, and (ii) contains
provisions for acceleration of the maturity hereof upon the happening of certain
stated events and also for prepayments on account of principal hereof prior to
the maturity hereof upon the terms and conditions therein specified.

                                    [NAME OF BORROWER]

                                    By____________________________
                                      Title:
<PAGE>
                       ADVANCES AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
                                                 Amount of
Date                       Amount of           Principal Paid       Unpaid Principal          Notation
                            Advance              or Prepaid             Balance               Made By
------------------------------------------------------------------------------------------------------------
<S>                   <C>                   <C>                   <C>                   <C>
------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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</TABLE>
<PAGE>

                                                           EXHIBIT A-2 - FORM OF
                                                                 COMPETITIVE BID
                                                                 PROMISSORY NOTE

U.S.$_______________                             Dated:  _______________, 2000

          FOR VALUE RECEIVED, the undersigned, [NAME OF BORROWER], a Delaware
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
                  --------
_________________________ (the "Lender") for the account of its Applicable
                                ------
Lending Office (as defined in the 364-Day Credit Agreement dated as of August 8,
2000 among the Borrower, the Lender and certain other lenders parties thereto,
Citibank, N.A., as Agent for the Lender and such other lenders, Salomon Smith
Barney Inc. and Chase Securities Inc., as co-lead arrangers and co-book
managers, The Chase Manhattan Bank, as syndication agent, and Commerzbank AG New
York and Grand Cayman Branches and Bank One, NA, as co-documentation agents (as
amended or modified from time to time, the "Credit Agreement"; the terms defined
                                            ----------------
therein being used herein as therein defined)), on _______________, 200_, the
principal amount of U.S.$_______________.

          The Borrower promises to pay interest on the unpaid principal amount
hereof from the date hereof until such principal amount is paid in full, at the
interest rate and payable on the interest payment date or dates provided below:

     Interest Rate: _____% per annum (calculated on the basis of a year of _____
     days for the actual number of days elapsed).

          Both principal and interest are payable in lawful money of the United
States of America to Citibank, N.A., as Agent, for the account of the Lender at
the office of Citibank, N.A., at 399 Park Avenue, New York, New York 10043 in
same day funds.

          This Promissory Note is one of the Competitive Bid Notes referred to
in, and is entitled to the benefits of, the Credit Agreement.  The Credit
Agreement, among other things, contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events.

          The Borrower hereby waives presentment, demand, protest and notice of
any kind.  No failure to exercise, and no delay in exercising, any rights
hereunder on the part of the holder hereof shall operate as a waiver of such
rights.

          This Promissory Note shall be governed by, and construed in accordance
with, the laws of the State of New York.

                                                    [NAME OF BORROWER]

                                                    By_____________________
                                                     Title:
<PAGE>

                                                           EXHIBIT B-1 - FORM OF
                                            NOTICE OF REVOLVING CREDIT BORROWING

Citibank, N.A., as Agent
for the Lenders parties
to the Credit Agreement
referred to below
Two Penns Way
New Castle, Delaware 19720                   [Date]

Attention:  Bank Loans Syndications Department

Ladies and Gentlemen:

          The undersigned, [Name of Borrower], refers to the 364-Day Credit
Agreement, dated as of August 8, 2000 (as amended or modified from time to time,
the "Credit Agreement", the terms defined therein being used herein as therein
     ----------------
defined), among the undersigned, certain Lenders parties thereto, Citibank,
N.A., as Agent for said Lenders, Salomon Smith Barney Inc. and Chase Securities
Inc., as co-lead arrangers and co-book managers, The Chase Manhattan Bank, as
syndication agent, and Commerzbank AG New York and Grand Cayman Branches and
Bank One, NA, as co-documentation agents, and hereby gives you notice,
irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Revolving Credit Borrowing under the Credit
Agreement, and in that connection sets forth below the information relating to
such Revolving Credit Borrowing (the "Proposed Revolving Credit Borrowing") as
                                      -----------------------------------
required by Section 2.02(a) of the Credit Agreement:

          (i) The Business Day of the Proposed Revolving Credit Borrowing is
     _______________, 200_.

          (ii) The Type of Advances comprising the Proposed Revolving Credit
     Borrowing is [Base Rate Advances] [Eurodollar Rate Advances].

          (iii) The aggregate amount of the Proposed Revolving Credit Borrowing
     is $_______________.

          [(iv) The initial Interest Period for each Eurodollar Rate Advance
     made as part of the Proposed Revolving Credit Borrowing is __________
     month[s].]

          The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed Borrowing:

          (A) the representations and warranties contained in Section 4.01 of
     the Credit Agreement (except the representations set forth in the last
     sentence of subsection (e) thereof and in subsection (f)(i) thereof) are
     correct, before and after giving effect to the Proposed Revolving Credit
     Borrowing and to the application of the proceeds therefrom, as though made
     on and as of such date; and
<PAGE>

          (B) no event has occurred and is continuing, or would result from such
     Proposed Borrowing Revolving Credit or from the application of the proceeds
     therefrom, that constitutes a Default.

                                    Very truly yours,

                                    [NAME OF BORROWER]

                                    By_____________________________
                                      Title:
<PAGE>

                                                 EXHIBIT B-2 - FORM OF NOTICE OF
                                                       COMPETITIVE BID BORROWING

Citibank, N.A., as Agent
for the Lenders parties
to the Credit Agreement
referred to below
Two Penns Way
New Castle, Delaware 19720
                                                            [Date]

Attention:  Bank Loan Syndications Department

Ladies and Gentlemen:

          The undersigned, [Name of Borrower], refers to the 364-Day Credit
Agreement, dated as of August 8, 2000 (as amended or modified from time to time,
the "Credit Agreement", the terms defined therein being used herein as therein
     ----------------
defined), among the undersigned, certain Lenders parties thereto, Citibank,
N.A., as Agent for the Lender and such other lenders, Salomon Smith Barney Inc.
and Chase Securities Inc., as co-lead arrangers and co-book managers, The Chase
Manhattan Bank, as syndication agent, and Commerzbank AG New York and Grand
Cayman Branches and Bank One, NA, as co-documentation agents, and hereby gives
you notice, irrevocably, pursuant to Section 2.03 of the Credit Agreement that
the undersigned hereby requests a Competitive Bid Borrowing under the Credit
Agreement, and in that connection sets forth the terms on which such Competitive
Bid Borrowing (the "Proposed Competitive Bid Borrowing") is requested to be
                    ----------------------------------
made:

          (A)     Date of Competitive Bid Borrowing       _____________________
          (B)    Amount of Competitive Bid Borrowing      _____________________
          (C)    [Maturity Date] [Interest Period]        _____________________
          (D)    Interest Rate Basis                      _____________________
          (E)    Interest Payment Date(s)                 _____________________
          (F)    ___________________                      _____________________
          (G)    ___________________                      _____________________
          (H)    ___________________                      _____________________

          The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed
Competitive Bid Borrowing:

(a)  the representations and warranties contained in Section 4.01 of the Credit
     Agreement (except the representations set forth in the last sentence of
     subsection (e) thereof and in subsection (f)(i) thereof) are correct,
     before and after giving effect to the Proposed Competitive Bid Borrowing
     and to the application of the proceeds therefrom, as though made on and as
     of such date;

(b)  no event has occurred and is continuing, or would result from the Proposed
     Competitive Bid Borrowing or from the application of the proceeds
     therefrom, that constitutes a Default;

(c)  no event has occurred and no circumstance exists as a result of which the
     information concerning the undersigned that has been provided to the Agent
     and each Lender by the undersigned in connection with the Credit Agreement
     would include an untrue statement of a material fact or omit to state any
     material fact or any fact necessary to make the statements contained
     therein, in the light of the circumstances under which they were made, not
     misleading; and

(d)  the aggregate amount of the Proposed Competitive Bid Borrowing and all
     other Borrowings to be made on the same day under the Credit Agreement is
     within the aggregate amount of the unused Commitments of the Lenders.
<PAGE>

          The undersigned hereby confirms that the Proposed Competitive Bid
Borrowing is to be made available to it in accordance with Section 2.03(a)(v) of
the Credit Agreement.

                                                    Very truly yours,

                                                    [NAME OF BORROWER]

                                                    By________________________
                                                       Title:
<PAGE>

                                                  EXHIBIT C - FORM OF ASSIGNMENT
                                                                  AND ACCEPTANCE

          Reference is made to the 364-Day Credit Agreement dated as of August
8, 2000 (as amended or modified from time to time, the "Credit Agreement") among
                                                        ----------------
Monsanto Company, a Delaware corporation ("Monsanto") Pharmacia Corporation, a
                                           --------
Delaware corporation ("Pharmacia" and together with Monsanto, the "Borrowers"),
                       ---------                                   ---------
the Lenders (as defined in the Credit Agreement), Citibank, N.A., as agent for
the Lenders (the "Agent), Salomon Smith Barney Inc. and Chase Securities Inc.,
                  -----
as co-lead arrangers and co-book managers, The Chase Manhattan Bank, as
syndication agent, and Commerzbank AG New York and Grand Cayman Branches and
Bank One, NA, as co-documentation agents.  Terms defined in the Credit Agreement
are used herein with the same meaning.

          The "Assignor" and the "Assignee" referred to on Schedule I hereto
agree as follows:

          1. The Assignor hereby sells and assigns to the Assignee, without
     recourse, and the Assignee hereby purchases and assumes from the Assignor,
     an interest in and to the Assignor's rights and obligations under the
     Credit Agreement as of the date hereof (other than in respect of
     Competitive Bid Advances and Competitive Bid Notes) equal to the percentage
     interest specified on Schedule 1 hereto of all outstanding rights and
     obligations under the Credit Agreement (other than in respect of
     Competitive Bid Advances and Competitive Bid Notes). After giving effect to
     such sale and assignment, the Assignee's Commitment and the amount of the
     Advances owing to the Assignee will be as set forth on Schedule 1 hereto.

          2. The Assignor (i) represents and warrants that it is the legal and
     beneficial owner of the interest being assigned by it hereunder and that
     such interest is free and clear of any adverse claim; (ii) makes no
     representation or warranty and assumes no responsibility with respect to
     any statements, warranties or representations made in or in connection with
     the Credit Agreement or the execution, legality, validity, enforceability,
     genuineness, sufficiency or value of the Credit Agreement or any other
     instrument or document furnished pursuant thereto; (iii) makes no
     representation or warranty and assumes no responsibility with respect to
     the financial condition of any Borrower or the performance or observance by
     any Borrower of any of its obligations under the Credit Agreement or any
     other instrument or document furnished pursuant thereto; and (iv) attaches
     the Revolving Credit Note, if any, held by the Assignor [and requests that
     the Agent exchange such Revolving Credit Note for a new Revolving Credit
     Note payable to the order of the Assignor in an amount equal to the
     Commitment retained by the Assignor under the Credit Agreement, as
     specified on Schedule 1 hereto].

          3. The Assignee (i) confirms that it has received a copy of the Credit
     Agreement, together with copies of the financial statements referred to in
     Section 4.01 thereof and such other documents and information as it has
     deemed appropriate to make its own credit analysis and decision to enter
     into this Assignment and Acceptance; (ii) agrees that it will,
     independently and without reliance upon the Agent, the Assignor or any
     other Lender and based on such documents and information as it shall deem
     appropriate at the time, continue to make its own credit decisions in
     taking or not taking action under the Credit Agreement; (iii) confirms that
     it is an Eligible Assignee; (iv) appoints and authorizes the Agent to take
     such action as agent on its behalf and to exercise such powers and
     discretion under the Credit Agreement as are delegated to the Agent by the
     terms thereof, together with such powers and discretion as are reasonably
     incidental thereto; (v) agrees that it will perform in accordance with
     their terms all of the obligations that by the terms of the Credit
     Agreement are required to be performed by it as a Lender; (vi) attaches any
     U.S. Internal Revenue Service forms required under Section 2.14 of the
     Credit Agreement; and (vii) makes the representation and warranty set forth
     in Section 4.02 of the Credit Agreement.

          4. Following the execution of this Assignment and Acceptance, it will
     be delivered to the Agent for acceptance and recording by the Agent. The
     effective date for this Assignment and Acceptance (the "Effective Date")
                                                             --------------
     shall be the date of acceptance hereof by the Agent, unless otherwise
     specified on Schedule 1 hereto.
<PAGE>

          5. Upon such acceptance and recording by the Agent, as of the
     Effective Date, (i) the Assignee shall be a party to the Credit Agreement
     and, to the extent provided in this Assignment and Acceptance, have the
     rights and obligations of a Lender thereunder and (ii) the Assignor shall,
     to the extent provided in this Assignment and Acceptance, relinquish its
     rights and be released from its obligations under the Credit Agreement.

          6. Upon such acceptance and recording by the Agent, from and after the
     Effective Date, the Agent shall make all payments under the Credit
     Agreement and the Revolving Credit Notes in respect of the interest
     assigned hereby (including, without limitation, all payments of principal,
     interest and facility fees with respect thereto) to the Assignee. The
     Assignor and Assignee shall make all appropriate adjustments in payments
     under the Credit Agreement and the Revolving Credit Notes for periods prior
     to the Effective Date directly between themselves.

          7. This Assignment and Acceptance shall be governed by, and construed
     in accordance with, the laws of the State of New York.

          8. This Assignment and Acceptance may be executed in any number of
     counterparts and by different parties hereto in separate counterparts, each
     of which when so executed shall be deemed to be an original and all of
     which taken together shall constitute one and the same agreement. Delivery
     of an executed counterpart of Schedule 1 to this Assignment and Acceptance
     by telecopier shall be effective as delivery of a manually executed
     counterpart of this Assignment and Acceptance.

          IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule
1 to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.
<PAGE>

                                   Schedule 1
                                       to
                           Assignment and Acceptance
<TABLE>
<S>                                                                                  <C>
Percentage interest assigned:                                                        _____%

Amount of Commitment assigned:                                                       $_______________

Assignee's Commitment:                                                               $_______________

Aggregate outstanding principal amount of Revolving Credit  Advances assigned:       $_______________
</TABLE>
Effective Date*:    _______________, 200_

                                          [NAME OF ASSIGNOR], as Assignor

                                          By________________________________
                                            Title:

                                          Dated:  _______________, 200_

                                          [NAME OF ASSIGNEE], as Assignee

                                          By________________________________
                                            Title:

                                          Domestic Lending Office:
                                           [Address]

                                          Eurodollar Lending Office:
                                           [Address]

Accepted [and Approved]** this
__________ day of _______________, 200_

CITIBANK, N.A., as Agent

By_____________________________________
 Title:

[Approved this __________ day
of _______________, 200_

________________________
*    This date should be no earlier than five Business Days after the delivery
     of this Assignment and Acceptance to the Agent.

**   Required if the Assignee is an Eligible Assignee solely by reason of clause
     (iii) of the definition of "Eligible Assignee".
<PAGE>

MONSANTO COMPANY

By______________________________]*
 Title:

PHARMACIA CORPORATION

By______________________________]*
 Title:

_____________________________
*    Required if the Assignee is an Eligible Assignee solely by reason of clause
     (iii) of the definition of "Eligible Assignee".
<PAGE>

                                                              EXHIBIT D- FORM OF
                                                            ASSUMPTION AGREEMENT

                                          Dated:

Monsanto Company
800 North Lindbergh Boulevard
St. Louis, Missouri 63167
        Attention:  Chief Financial Officer

Citibank, N.A.,
  as Agent
399 Park Avenue
New York, New York 10043
   Attention:  __________________

Ladies and Gentlemen:

          Reference is made to the 364-Day Credit Agreement dated as of August
8, 2000 (as amended or modified from time to time, the "Credit Agreement") among
                                                        ----------------
Monsanto Company, a Delaware corporation ("Monsanto") Pharmacia Corporation, a
                                           --------
Delaware corporation ("Pharmacia" and together with Monsanto, the "Borrowers"),
                       ---------                                   ---------
the Lenders (as defined in the Credit Agreement), Citibank, N.A., as agent for
the Lenders (the "Agent), Salomon Smith Barney Inc. and Chase Securities Inc.,
                  -----
as co-lead arrangers and co-book managers, The Chase Manhattan Bank, as
syndication agent, and Commerzbank AG New York and Grand Cayman Branches and
Bank One, NA, as co-documentation agents.  Terms defined in the Credit Agreement
are used herein with the same meaning.

          The undersigned proposes to become an Assuming Bank pursuant to
Section 2.17 of the Credit Agreement and, in that connection, hereby agrees that
it shall become a Lender for purposes of the Credit Agreement on [applicable
Termination Date] and that its Commitment shall as of such date be $_________.

          The undersigned (the "Assuming Bank") (i) confirms that it has
                                -------------
received a copy of the Credit Agreement, together with copies of the financial
statements referred to in Section  5.01(f) thereof and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assumption Agreement; (ii) agrees that it will,
independently and without reliance upon the Agent or any other Lender and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Credit Agreement; (iii) appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers under the Credit
Agreement as are delegated to the Agent by the terms thereof, together with such
powers as are reasonably incidental thereto; (iv) agrees that it will perform in
accordance with their terms all of the obligations that by the terms of the
Credit Agreement are required to be performed by it as a Lender; (v) confirms
that it is an Eligible Assignee; [and] (vi) specifies as its Domestic Lending
Office (and address for notices) and Eurodollar Lending Office the offices set
forth beneath its name on the signature pages hereof; [and (vii) attaches any
U.S. Internal Revenue Service forms required under Section 2.14] of the Credit
Agreement]/1/ and [(vii)] [(viii)] makes the representation and warranty set
forth in Section 4.02 of the Credit Agreement.

          The effective date for this Assumption Agreement shall be [applicable
Termination Date].  Upon delivery of this Assumption Agreement to the Borrower
and the Agent and acceptance and recording of this Assumption Agreement by the
Agent, as of [date specified above], the Assuming Bank shall be a party to the
Credit Agreement and have the rights and obligations of a Lender thereunder.  As
of [date specified above], the Agent shall make all payments under the Credit
Agreement in respect of the interest assumed hereby (including, without
limitation, all payments of principal, interest and  facility fees) to the
Assuming Bank.

_____________________________
/1/   If the Assuming Bank is organized under the laws of a jurisdiction outside
the United States.
<PAGE>

          This Assumption Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.  Delivery of an executed
counterpart of this Assumption Agreement by telecopier shall be effective as
delivery of a manually executed counterpart of this Assumption Agreement.

          This Assumption Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

                                      Very truly yours,

                                      [NAME OF ASSUMING BANK]

                                      By____________________________
                                        Name:
                                        Title:

                                      Domestic Lending Office
                                       (and address for notices):
                                      [Address]

                                      Eurodollar Lending Office:
                                      [Address]:

Above Acknowledged and Agreed to:

MONSANTO COMPANY

By_______________________________
 Name:
 Title:

[PHARMACIA CORPORATION]

By_______________________________
 Name:
 Title:

                                       2
<PAGE>

Accepted this ____ day of
_________, _________

CITIBANK, N.A.,
as Agent

By______________________________
 Name:
 Title:

                                       3
<PAGE>

                                                    EXHIBIT E- FORM OF NOTICE OF
                                                   EXTENSION OF TERMINATION DATE

                                        [Date]

Citibank, N.A.,
 as Agent
399 Park Avenue
New York, New York 10043
   Attention:  __________________

Monsanto Company
----------------

Ladies and Gentlemen:

          Reference is made to the 364-Day Credit Agreement dated as of August
8, 2000 (as amended or modified from time to time, the "Credit Agreement") among
                                                        ----------------
Monsanto Company, a Delaware corporation ("Monsanto") Pharmacia Corporation, a
                                           --------
Delaware corporation ("Pharmacia" and together with Monsanto, the "Borrowers"),
                       ---------                                   ---------
the Lenders (as defined in the Credit Agreement), Citibank, N.A., as agent for
the Lenders (the "Agent), Salomon Smith Barney Inc. and Chase Securities Inc.,
                  -----
as co-lead arrangers and co-book managers, The Chase Manhattan Bank, as
syndication agent, and Commerzbank AG New York and Grand Cayman Branches and
Bank One, NA, as co-documentation agents.  Terms defined in the Credit Agreement
are used herein with the same meaning.

          Pursuant to Section 2.17 of the Credit Agreement, the Lender named
below hereby notifies the Agent as follows:

          [The Lender named below desires to extend the Termination Date with
          respect to [all] [$______] of its Commitment for a period of 364
          days.]

          [The Lender named below desires to extend the Termination Date with
          respect to all of its Commitment for a period of 364 days and offers
          to increase its Commitment commencing [______________] to
          $__________.]

          [The Lender named below does NOT desire to extend the Termination Date
          with respect to any of its Commitment for a period of 364 days.]
<PAGE>

          This notice is subject in all respects to the terms of the Credit
Agreement, is irrevocable and shall be effective only if received by the Agent
no later than [______________]./1/

                                    Very truly yours,

                                    [NAME OF LENDER]

                                    By:_______________________________
                                     Name:
                                     Title:

______________________________
/1/  This date shall be no later than 20 days prior to the then scheduled
     Termination Date in the case of an Extending Lender's notice to extend its
     Commitment and no later than 15 days prior to the then scheduled
     Termination Date in the case of an Extending Lender's offer to increase its
     Commitment.

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