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                                                                   EXHIBIT 10.17

                               LANDEC CORPORATION

                              AMENDED AND RESTATED

                             1996 STOCK OPTION PLAN

         1.       PURPOSES OF THE PLAN. The purposes of this Stock Option Plan
are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to the Employees and
Consultants of the Company and to promote the success of the Company's business.

                  Options granted hereunder may be either Incentive Stock
Options (as defined under Section 422 of the Code) or Nonstatutory Stock
Options, at the discretion of the Board and as reflected in the terms of the
written option agreement.

         2.       DEFINITIONS.  As used herein, the following definitions
shall apply:

                  (a)      "ADMINISTRATOR" shall mean the Board or any of its
Committees appointed pursuant to Section 4 of the Plan.

                  (b)      "AFFILIATE" shall mean an entity other than a
Subsidiary (as defined below) in which the Company owns an equity interest.

                  (c)      "APPLICABLE LAWS" shall have the meaning set forth in
Section 4(a) below.

                  (d)      "BOARD" shall mean the Board of Directors of the
Company.

                  (e)      "CODE" shall mean the Internal Revenue Code of 1986,
as amended.

                  (f)      "COMMITTEE" shall mean the Committee appointed by the
Board of Directors in accordance with Section 4(a) of the Plan, if one is
appointed.

                  (g)      "COMMON STOCK" shall mean the Common Stock of the
Company.

                  (h)      "COMPANY" shall mean Landec Corporation, a California
corporation.

                  (i)      "CONSULTANT" means any person, including an advisor,
who is engaged by the Company or any Parent or Subsidiary to render services and
is compensated for such services; PROVIDED that the term Consultant shall not
include directors who are not compensated for their services or are paid only a
director's fee by the Company.

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                  (j)      "CONTINUOUS STATUS AS AN EMPLOYEE OR CONSULTANT"
shall mean the absence of any interruption or termination of service as an
Employee or Consultant. Continuous Status as an Employee or Consultant shall not
be considered interrupted in the case of sick leave, military leave, or any
other leave of absence approved by the Administrator; PROVIDED that such leave
is for a period of not more than 90 days or reemployment upon the expiration of
such leave is guaranteed by contract or statute. For purposes of this Plan, a
change in status from an Employee to a Consultant or from a Consultant to an
Employee will not constitute a termination of employment.

                  (k)      "DIRECTOR" shall mean a member of the Board.

                  (l)      "EMPLOYEE" shall mean any person (including any Named
Executive, Officer or Director) employed by the Company or any Parent,
Subsidiary or Affiliate of the Company. The payment by the Company of a
director's fee to a Director shall not be sufficient to constitute "employment"
of such Director by the Company.

                  (m)      "EXCHANGE ACT" shall mean the Securities Exchange Act
of 1934, as amended.

                  (n)      "FAIR MARKET VALUE" means, as of any date, the value
of Common Stock determined as follows:

                           (i)     If the Common Stock is listed on any
established stock exchange or a national market system including without
limitation the National Market of the National Association of Securities
Dealers, Inc. Automated Quotation ("Nasdaq") System, its Fair Market Value shall
be the closing sales price for such stock as quoted on such system on the date
of determination (if for a given day no sales were reported, the closing bid on
that day shall be used), as such price is reported in The Wall Street Journal or
such other source as the Administrator deems reliable;

                           (ii)    If the Common Stock is quoted on the Nasdaq
System (but not on the National Market thereof) or regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the bid and asked prices for the Common
Stock or;

                           (iii)   In the absence of an established market for
the Common Stock, the Fair Market Value thereof shall be determined in good
faith by the Administrator.

                  (o)      "INCENTIVE STOCK OPTION" shall mean an Option
intended to qualify as an incentive stock option within the meaning of Section
422 of the Code, as designated in the applicable written option agreement.

                  (p)      "NAMED EXECUTIVE" shall mean any individual who, on
the last day of the Company's fiscal year, is the chief executive officer of the
Company (or is acting in such capacity) or among the four highest compensated
officers of the Company (other

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than the chief executive officer). Such officer status shall be determined
pursuant to the executive compensation disclosure rules under the Exchange Act.

                  (q)      "NONSTATUTORY STOCK OPTION" shall mean an Option not
intended to qualify as an Incentive Stock Option, as designated in the
applicable written option agreement.

                  (r)      "OFFICER" shall mean a person who is an officer of
the Company within the meaning of Section 16 of the Exchange Act and the rules
and regulations promulgated thereunder.

                  (s)      "OPTION" shall mean a stock option granted pursuant
to the Plan.

                  (t)      "OPTIONED STOCK" shall mean the Common Stock subject
to an Option.

                  (u)      "OPTIONEE" shall mean an Employee or Consultant who
receives an Option.

                  (v)      "PARENT" shall mean a "parent corporation," whether
now or hereafter existing, as defined in Section 424(e) of the Code.

                  (w)      "PLAN" shall mean this 1996 Stock Option Plan.

                  (x)      "RULE 16b-3" shall mean Rule 16b-3 promulgated under
the Exchange Act as the same may be amended from time to time, or any successor
provision.

                  (y)      "SHARE" shall mean a share of the Common Stock, as
adjusted in accordance with Section 14 of the Plan.

                  (z)      "SUBSIDIARY" shall mean a "subsidiary corporation,"
whether now or hereafter existing, as defined in Section 424(f) of the Code.

         3.       STOCK SUBJECT TO THE PLAN. Subject to the provisions of
Section 14 of the Plan, the maximum aggregate number of shares that may be
optioned and sold under the Plan is 2,000,000 shares of Common Stock. The Shares
may be authorized, but unissued, or reacquired Common Stock.

         If an Option should expire or become unexercisable for any reason
without having been exercised in full, the unpurchased Shares that were subject
thereto shall, unless the Plan shall have been terminated, become available for
future grant under the Plan. Notwithstanding any other provision of the Plan,
shares issued under the Plan and later repurchased by the Company shall not
become available for future grant under the Plan.

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         4.       ADMINISTRATION OF THE PLAN.

                  (a)     COMPOSITION OF ADMINISTRATOR.

                          (i)        MULTIPLE ADMINISTRATIVE BODIES. If
permitted by Rule 16b-3, and by the legal requirements relating to the
administration of incentive stock option plans, if any, of applicable securities
laws and the Code (collectively, the "APPLICABLE LAWS"), grants under the Plan
may (but need not) be made by different administrative bodies with respect to
Directors, Officers who are not directors and Employees who are neither
Directors nor Officers.

                          (ii)       ADMINISTRATION WITH RESPECT TO DIRECTORS
AND OFFICERS. With respect to grants of Options to Employees or Consultants who
are also Officers or Directors of the Company, grants under the Plan shall be
made by (A) the Board, if the Board may make grants under the Plan in compliance
with Rule 16b-3 and Section 162(m) of the Code as it applies so as to qualify
grants of Options to Named Executives as performance-based compensation, or (B)
a Committee designated by the Board to make grants under the Plan, which
Committee shall be constituted in such a manner as to permit grants under the
Plan to comply with Rule 16b-3, to qualify grants of Options to Named Executives
as performance-based compensation under Section 162(m) of the Code and otherwise
so as to satisfy the Applicable Laws.

                          (iii)      ADMINISTRATION WITH RESPECT TO OTHER
PERSONS. With respect to grants of Options to Employees or Consultants who are
neither Directors nor Officers of the Company, the Plan shall be administered by
(A) the Board or (B) a Committee designated by the Board, which Committee shall
be constituted in such a manner as to satisfy the Applicable Laws.

                          (iv)       GENERAL. If a Committee has been appointed
pursuant to subsection (ii) or (iii) of this Section 4(a), such Committee shall
continue to serve in its designated capacity until otherwise directed by the
Board. From time to time the Board may increase the size of any Committee and
appoint additional members thereof, remove members (with or without cause) and
appoint new members in substitution therefor, fill vacancies (however caused)
and remove all members of a Committee and thereafter directly administer the
Plan, all to the extent permitted by the Applicable Laws and, in the case of a
Committee appointed under subsection (ii), to the extent permitted by Rule 16b-3
and to the extent required under Section 162(m) of the Code to qualify grants of
Options to Named Executives as performance-based compensation.

                  (b)     POWERS OF THE ADMINISTRATOR. Subject to the
provisions of the Plan and in the case of a Committee, the specific duties
delegated by the Board to such Committee, the Administrator shall have the
authority, in its discretion:

                          (i)        to determine the Fair Market Value of the
Common Stock, in accordance with Section 2(m) of the Plan;

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                          (ii)       to select the Employees and Consultants to
whom Options may from time to time be granted hereunder;

                          (iii)      to determine whether and to what extent
Options are granted hereunder;

                          (iv)       to determine the number of shares of Common
Stock to be covered by each such award granted hereunder;

                          (v)        to approve forms of agreement for use under
the Plan;

                          (vi)       to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any award granted hereunder
(including, but not limited to, the share price and any restriction or
limitation, or any vesting acceleration or waiver of forfeiture restrictions
regarding any Option and/or the shares of Common Stock relating thereto, based
in each case on such factors as the Administrator shall determine, in its sole
discretion);

                          (vii)      to reduce the exercise price of any Option
to the then current Fair Market Value if the Fair Market Value of the Common
Stock covered by such Option shall have declined since the date the Option was
granted.

                  (c)     EFFECT OF ADMINISTRATOR'S DECISION. All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all Optionees and any other holders of any Options.

         5.       ELIGIBILITY.

                  (a)     RECIPIENTS OF GRANTS. Nonstatutory Stock Options may
be granted to Employees and Consultants. Incentive Stock Options may be granted
only to Employees, PROVIDED, HOWEVER, that Employees of an Affiliate shall not
be eligible to receive Incentive Stock Options. An Employee or Consultant who
has been granted an Option may, if he or she is otherwise eligible, be granted
an additional Option or Options.

                  (b)     TYPE OF OPTION. Each Option shall be designated in the
written option agreement as either an Incentive Stock Option or a Nonstatutory
Stock Option. However, notwithstanding such designations, to the extent that the
aggregate Fair Market Value of Shares with respect to which Incentive Stock
Options are exercisable for the first time by an Optionee during any calendar
year (under all plans of the Company or any Parent or Subsidiary) exceeds
$100,000, such excess Options shall be treated as Nonstatutory Stock Options.
For purposes of this Section 5(b), Incentive Stock Options shall be taken into
account in the order in which they were granted, and the Fair Market Value of
the Shares shall be determined as of the time the Option with respect to such
Shares is granted.

                  (c)     NO EMPLOYMENT RIGHTS. The Plan shall not confer upon
any Optionee any right with respect to continuation of employment or consulting
relationship

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with the Company, nor shall it interfere in any way with his or her right or the
Company's right to terminate his or her employment or consulting relationship at
any time, with or without cause.

         6.       TERM OF PLAN. The Plan shall become effective upon the earlier
to occur of its adoption by the Board or its approval by the shareholders of the
Company as described in Section 20 of the Plan. It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 16 of the Plan.

         7.       TERM OF OPTION. The term of each Option shall be the term
stated in the Option Agreement; PROVIDED, HOWEVER, that in the case of an
Incentive Stock Option, the term shall be no more than ten (10) years from the
date of grant thereof or such shorter term as may be provided in the Option
Agreement. However, in the case of an Incentive Stock Option granted to an
Optionee who, at the time the Option is granted, owns stock representing more
than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Option shall
be five (5) years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement.

         8.       LIMITATION ON GRANTS TO EMPLOYEES. Subject to adjustment as
provided in this Plan, the maximum number of Shares which may be subject to
options granted to any one Employee under this Plan for any fiscal year of the
Company shall be 500,000.

         9.       OPTION EXERCISE PRICE AND CONSIDERATION.

                  (a)      EXERCISE PRICE. The per Share exercise price for the
Shares to be issued pursuant to exercise of an Option shall be such price as is
determined by the Administrator, but shall be subject to the following:

                           (i)      In the case of an Incentive Stock Option

                                    (A)     granted to an Employee who, at the
time of the grant of such Incentive Stock Option, owns stock representing more
than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the per Share exercise price shall be no
less than 110% of the Fair Market Value per Share on the date of grant; or

                                    (B)     granted to any other Employee, the
per Share exercise price shall be no less than 100% of the Fair Market Value per
Share on the date of grant.

                           (ii)     In the case of a Nonstatutory Stock Option

                                    (A)     granted to a person who, at the time
of the grant of such Option, is a Named Executive of the Company, the per share
Exercise Price shall be no less than 100% of the Fair Market Value on the date
of grant; or

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                                    (B)     granted to any person other than a
Named Executive, the per Share exercise price shall be no less than 85% of the
Fair Market Value per Share on the date of grant.

                          (iii)     Notwithstanding anything to the contrary in
subsections 9(a)(i) or 9(a)(ii) above, in the case of an Option granted on or
after the effective date of registration of any class of equity security of the
Company pursuant to Section 12 of the Exchange Act and prior to six months after
the termination of such registration, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant.

                  (b)     PERMISSIBLE CONSIDERATION. The consideration to be
paid for the Shares to be issued upon exercise of an Option, including the
method of payment, shall be determined by the Administrator (and, in the case of
an Incentive Stock Option, shall be determined at the time of grant) and may
consist entirely of (1) cash, (2) check, (3) authorization from the Company to
retain from the total number of Shares as to which the Option is exercised that
number of Shares having a Fair Market Value on the date of exercise equal to the
exercise price for the total number of Shares as to which the Option is
exercised, (4) delivery of a properly executed exercise notice together with
irrevocable instructions to a broker to deliver promptly to the Company the
amount of sale or loan proceeds required to pay the exercise price, (5) any
combination of the foregoing methods of payment, or (6) such other consideration
and method of payment for the issuance of Shares to the extent permitted under
Applicable Laws. In making its determination as to the type of consideration to
accept, the Administrator shall consider if acceptance of such consideration may
be reasonably expected to benefit the Company.

         10.      EXERCISE OF OPTION.

                  (a)     PROCEDURE FOR EXERCISE; RIGHTS AS A SHAREHOLDER. Any
Option granted hereunder shall be exercisable at such times and under such
conditions as determined by the Administrator, including performance criteria
with respect to the Company and/or the Optionee, and as shall be permissible
under the terms of the Plan.

                  An Option may not be exercised for a fraction of a Share.

                  An Option shall be deemed to be exercised when written notice
of such exercise has been given to the Company in accordance with the terms of
the Option by the person entitled to exercise the Option and full payment for
the Shares with respect to which the Option is exercised has been received by
the Company. Full payment may, as authorized by the Administrator, consist of
any consideration and method of payment allowable under Section 9(b) of the
Plan. Until the issuance (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate promptly upon exercise of the Option. No
adjustment

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will be made for a dividend or other right for which the record date is prior to
the date the stock certificate is issued, except as provided in Section 14 of
the Plan.

                  Exercise of an Option in any manner shall result in a decrease
in the number of Shares which thereafter may be available, both for purposes of
the Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

                  (b)      TERMINATION OF STATUS AS AN EMPLOYEE OR CONSULTANT.
In the event of termination of an Optionee's Continuous Status as an Employee or
Consultant, such Optionee may, but only within thirty (30) days (or such other
period of time, not exceeding three (3) months in the case of an Incentive Stock
Option or six (6) months in the case of a Nonstatutory Stock Option, as is
determined by the Administrator, with such determination in the case of an
Incentive Stock Option being made at the time of grant of the Option) after the
date of such termination (but in no event later than the date of expiration of
the term of such Option as set forth in the Option Agreement), exercise his or
her Option to the extent that he or she was entitled to exercise it at the date
of such termination. To the extent that the Optionee was not entitled to
exercise the Option at the date of such termination, or if the optionee does not
exercise such Option (which he or she was entitled to exercise) within the time
specified herein, the Option shall terminate.

                  (c)      DISABILITY OF OPTIONEE. Notwithstanding Section 10(b)
above, in the event of termination of an Optionee's Continuous Status as an
Employee or Consultant as a result of his or her total and permanent disability
(as defined in Section 22(e)(3) of the Code), he or she may, but only within six
(6) months (or such other period of time not exceeding twelve (12) months as is
determined by the Administrator, with such determination in the case of an
Incentive Stock Option being made at the time of grant of the Option) from the
date of such termination (but in no event later than the date of expiration of
the term of such Option as set forth in the Option Agreement), exercise his or
her Option to the extent he or she was entitled to exercise it at the date of
such termination. To the extent that he or she was not entitled to exercise the
Option at the date of termination, or if he does not exercise such Option (which
he was entitled to exercise) within the time specified herein, the Option shall
terminate.

                  (d)      DEATH OF OPTIONEE.  In the event of the death of an
Optionee:

                           (i)      during the term of the Option who is at the
time of his death an Employee or Consultant of the Company and who shall have
been in Continuous Status as an Employee or Consultant since the date of grant
of the Option, the Option may be exercised, at any time within six (6) months
(or such other period of time, not exceeding six (6) months, as is determined by
the Administrator, with such determination in the case of an Incentive Stock
Option being made at the time of grant of the Option) following the date of
death (but in no event later than the date of expiration of the term of such
Option as set forth in the Option Agreement), by the Optionee's estate or by a
person who acquired the right to exercise the Option by bequest or inheritance
but only to the extent of the right to exercise that would have accrued had the
Optionee continued living and remained in Continuous Status as an Employee or
Consultant three (3) months

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(or such other period of time as is determined by the Administrator as provided
above) after the date of death, subject to the limitation set forth in Section
5(b); or

                           (ii)     within thirty (30) days (or such other
period of time not exceeding three (3) months as is determined by the
Administrator, with such determination in the case of an Incentive Stock Option
being made at the time of grant of the Option) after the termination of
Continuous Status as an Employee or Consultant, the Option may be exercised, at
any time within six (6) months following the date of death (but in no event
later than the date of expiration of the term of such Option as set forth in the
Option Agreement), by the Optionee's estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent
of the right to exercise that had accrued at the date of termination.

                  (e)      RULE 16b-3. Options granted to persons subject to
Section 16(b) of the Exchange Act must comply with Rule 16b-3 and shall contain
such additional conditions or restrictions as may be required thereunder to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

         11.      WITHHOLDING TAXES. As a condition to the exercise of Options
granted hereunder, the Optionee shall make such arrangements as the
Administrator may require for the satisfaction of any federal, state, local or
foreign withholding tax obligations that may arise in connection with the
exercise, receipt or vesting of such Option. The Company shall not be required
to issue any Shares under the Plan until such obligations are satisfied.

         12.      STOCK WITHHOLDING TO SATISFY WITHHOLDING TAX OBLIGATIONS. At
the discretion of the Administrator, Optionees may satisfy withholding
obligations as provided in this paragraph. When an Optionee incurs tax liability
in connection with an Option which tax liability is subject to tax withholding
under applicable tax laws, and the Optionee is obligated to pay the Company an
amount required to be withheld under applicable tax laws, the Optionee may
satisfy the withholding tax obligation by one or some combination of the
following methods: (a) by cash payment, or (b) out of Optionee's current
compensation, or (c) if permitted by the Administrator, in its discretion, by
surrendering to the Company Shares that (i) in the case of Shares previously
acquired from the Company, have been owned by the Optionee for more than six
months on the date of surrender, and (ii) have a fair market value on the date
of surrender equal to or less than Optionee's marginal tax rate times the
ordinary income recognized, or (d) by electing to have the Company withhold from
the Shares to be issued upon exercise of the Option that number of Shares having
a fair market value equal to the amount required to be withheld. For this
purpose, the fair market value of the Shares to be withheld shall be determined
on the date that the amount of tax to be withheld is to be determined (the "TAX
DATE").

                  Any surrender by an Officer or Director of previously owned
Shares to satisfy tax withholding obligations arising upon exercise of this
Option must comply with the applicable provisions of Rule 16b-3.

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                  All elections by an Optionee to have Shares withheld to
satisfy tax withholding obligations shall be made in writing in a form
acceptable to the Administrator and shall be subject to the following
restrictions:

                  (a)      the election must be made on or prior to the
applicable Tax Date;

                  (b)      once made, the election shall be irrevocable as to
the particular Shares of the Option as to which the election is made; and

                  (c)      all elections shall be subject to the consent or
disapproval of the Administrator.

                  In the event the election to have Shares withheld is made by
an Optionee and the Tax Date is deferred under Section 83 of the Code because no
election is filed under Section 83(b) of the Code, the Optionee shall receive
the full number of Shares with respect to which the Option is exercised but such
Optionee shall be unconditionally obligated to tender back to the Company the
proper number of Shares on the Tax Date.

         13.      NON-TRANSFERABILITY OF OPTIONS. The Option may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution; PROVIDED that the
Administrator may in its discretion grant transferable Nonstatutory Stock
Options pursuant to option agreements specifying (i) the manner in which such
Nonstatutory Stock Options are transferable and (ii) that any such transfer
shall be subject to the Applicable Laws. The designation of a beneficiary by an
Optionee will not constitute a transfer. An Option may be exercised, during the
lifetime of the Optionee, only by the Optionee or a transferee permitted by this
Section 13.

         14.      ADJUSTMENTS UPON CHANGES IN CAPITALIZATION; CORPORATE
TRANSACTIONS.

                  (a)      ADJUSTMENT. Subject to any required action by the
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, the number of shares of Common Stock that have been
authorized for issuance under the Plan but as to which no Options have yet been
granted or which have been returned to the Plan upon cancellation or expiration
of an Option, the maximum number of shares of Common Stock for which Options may
be granted to any employee under Section 8 of the Plan, and the price per share
of Common Stock covered by each such outstanding Option, shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to
have been "effected without receipt of consideration." Such adjustment shall be
made by the Administrator, whose determination in that respect shall be final,
binding and conclusive. Except as expressly

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provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option.

                  (b)      CORPORATE TRANSACTIONS. In the event of the proposed
dissolution or liquidation of the Company, the Option will terminate immediately
prior to the consummation of such proposed action, unless otherwise provided by
the Administrator. The Administrator may, in the exercise of its sole discretion
in such instances, declare that any Option shall terminate as of a date fixed by
the Administrator and give each Optionee the right to exercise his or her Option
as to all or any part of the Optioned Stock, including Shares as to which the
Option would not otherwise be exercisable. In the event of a proposed sale of
all or substantially all of the assets of the Company, or the merger of the
Company with or into another corporation, the Option shall be assumed or an
equivalent option shall be substituted by such successor corporation or a parent
or subsidiary of such successor corporation, unless the Administrator
determines, in the exercise of its sole discretion and in lieu of such
assumption or substitution, that the Optionee shall have the right to exercise
the Option as to some or all of the Optioned Stock, including Shares as to which
the Option would not otherwise be exercisable. If the Administrator makes an
Option exercisable in lieu of assumption or substitution in the event of a
merger or sale of assets, the Administrator shall notify the Optionee that the
Option shall be exercisable for a period of fifteen (15) days from the date of
such notice, and the Option will terminate upon the expiration of such period.

         15.      TIME OF GRANTING OPTIONS. The date of grant of an Option
shall, for all purposes, be the date on which the Administrator makes the
determination granting such Option or such other date as is determined by the
Administrator; PROVIDED HOWEVER that in the case of any Incentive Stock Option,
the grant date shall be the later of the date on which the Administrator makes
the determination granting such Incentive Stock Option or the date of
commencement of the Optionee's employment relationship with the Company. Notice
of the determination shall be given to each Employee or Consultant to whom an
Option is so granted within a reasonable time after the date of such grant.

         16.      AMENDMENT AND TERMINATION OF THE PLAN.

                  (a)      AMENDMENT AND TERMINATION. The Board may amend or
terminate the Plan from time to time in such respects as the Board may deem
advisable; provided that, the following revisions or amendments shall require
approval of the shareholders of the Company in the manner described in Section
20 of the Plan:

                           (i)      any increase in the number of Shares subject
to the Plan, other than an adjustment under Section 14 of the Plan;

                           (ii)     any change in the designation of the class
of persons eligible to be granted Options; or

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                           (iii)    any change in the limitation on grants to
employees as described in Section 8 of the Plan or other changes which would
require shareholder approval to qualify options granted hereunder as
performance-based compensation under Section 162(m) of the Code.

                  (b)      SHAREHOLDER APPROVAL. If any amendment requiring
shareholder approval under Section 16(a) of the Plan is made subsequent to the
first registration of any class of equity securities by the Company under
Section 12 of the Exchange Act, such shareholder approval shall be solicited as
described in Section 20 of the Plan.

                  (c)      EFFECT OF AMENDMENT OR TERMINATION. Any such
amendment or termination of the Plan shall not affect Options already granted
and such Options shall remain in full force and effect as if this Plan had not
been amended or terminated, unless mutually agreed otherwise between the
Optionee and the Board, which agreement must be in writing and signed by the
Optionee and the Company.

         17.      CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

         As a condition to the exercise of an Option, the Company may require
the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

         18.      RESERVATION OF SHARES. The Company, during the term of this
Plan, will at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan. The inability of
the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

         19.      OPTION AGREEMENT. Options shall be evidenced by written option
agreements in such form as the Board shall approve.

         20.      SHAREHOLDER APPROVAL.

                  (a)      Continuance of the Plan shall be subject to approval
by the shareholders of the Company within twelve (12) months before or after the
date the Plan is adopted. Such shareholder approval shall be obtained in the
manner and to the degree

                                      -12-
<PAGE>

required under applicable federal and state law and the rules of any stock
exchange upon which the Shares are listed.

                  (b)      In the event that the Company registers any class of
equity securities pursuant to Section 12 of the Exchange Act, any required
approval of the shareholders of the Company obtained after such registration
shall be solicited substantially in accordance with Section 14(a) of the
Exchange Act and the rules and regulations promulgated thereunder.

                  (c)      If any required approval by the shareholders of the
Plan itself or of any amendment thereto is solicited at any time otherwise than
in the manner described in Section 20(b) hereof, then the Company shall, at or
prior to the first annual meeting of shareholders held subsequent to the later
of (1) the first registration of any class of equity securities of the Company
under Section 12 of the Exchange Act or (2) the granting of an Option hereunder
to an officer or director after such registration, do the following:

                           (i)     furnish in writing to the holders entitled to
vote for the Plan substantially the same information that would be required (if
proxies to be voted with respect to approval or disapproval of the Plan or
amendment were then being solicited) by the rules and regulations in effect
under Section 14(a) of the Exchange Act at the time such information is
furnished; and

                           (ii)    file with, or mail for filing to, the
Securities and Exchange Commission four copies of the written information
referred to in subsection (i) hereof not later than the date on which such
information is first sent or given to shareholders.

                                      -13-<PAGE>

                                                                   EXHIBIT 10.31

                               AMENDMENT NO. 2 TO
                                 LOAN AGREEMENT

     This Amendment No. 2 to Loan Agreement (this "Amendment"), dated as of
February 28, 2001, is entered into with reference to the Loan Agreement (as
amended, supplemented or otherwise modified from time to time, the "Loan
Agreement") dated as of November 29, 1999 currently among Apio, Inc., a Delaware
corporation ("Borrower"), each lender from time to time a party thereto (each a
"Lender" and collectively, the "Lenders"), Bank of America, N. A., as Issuing
Lender, and Bank of America, N. A., as Administrative Agent (in such capacity,
the "Administrative Agent"). Capitalized terms not otherwise defined herein
shall have the meanings set forth in the Loan Agreement. Section references
herein relate to the Loan Agreement unless otherwise stated.

     The parties hereto hereby agree as follows:

     1. SECTION 1.1 - DEFINITION OF "BASE MARGIN"; "BASE RATE MARGIN". For
purposes of clarification, all references to the "BASE MARGIN" contained in the
Loan Agreement and the other Loan Documents are hereby amended in full to read
"BASE RATE MARGIN". The definition of "BASE MARGIN" is hereby amended in full to
read as follows:

          "BASE RATE MARGIN" means, for each Pricing Period, (a) with respect to
     the outstanding principal amount of Revolving Loans in excess of the
     Unaugmented Borrowing Base Amount, 1.50%, and (b) with respect to (i) the
     outstanding principal amount of Term Loans and (ii) the outstanding
     principal amount of Revolving Loans less than or equal to the Unaugmented
     Base Rate Amount, the interest rate margin set forth below opposite the
     Pricing Level for that Pricing Period:

<TABLE>
<CAPTION>
          PRICING LEVEL            EURODOLLAR MARGIN
          -------------            -----------------
          <S>                      <C>
               I                          0.00%
               II                         0.25%
               III                        0.50%
</TABLE>

     2. SECTION 1.1 - DEFINITION OF BORROWING BASE. The definition of "BORROWING
BASE" contained in SECTION 1.1 is hereby amended in full to read as follows:

          "BORROWING BASE" means, as of each date of determination, an amount
     determined by the Administrative Agent with reference to the most recent
     Borrowing Base Certificate to be equal to the SUM of:

          (a) eighty percent (80%) of the aggregate book value of the Eligible
     Receivables; PLUS

                                      -1-
<PAGE>

          (b) fifty percent (50%) of the aggregate amount of the of Eligible
Notes Receivable (such aggregate amount not to exceed $3,000,000 and resulting
in an increase to the Borrowing Base not to exceed $1,500,000); PLUS

          (c) twenty five percent (25%) of Eligible Inventory; MINUS

          (d) one hundred percent (100%) of Grower Payables; PLUS

          (e) the Borrowing Base Augmentation Amount, if any.

     3. SECTION 1.1 - NEW DEFINITION OF "BORROWING BASE AUGMENTATION AMOUNT".
The following definition is hereby added to the Loan Agreement:

          "BORROWING BASE AUGMENTATION AMOUNT" means (a) for the fiscal period
     from and including February 1, 2001 to and including March 31, 2001,
     $4,000,000 and (b) for the fiscal period from and including April 1, 2001
     to and including July 31, 2001, $2,000,000."

     4. SECTION 1.1 - DEFINITION OF "EURODOLLAR MARGIN". The definition of
"EURODOLLAR MARGIN" contained in SECTION 1.1 of the Loan Agreement is hereby
amended in full to read as follows:

          "EURODOLLAR MARGIN" means, for each Pricing Period, (a) with respect
     to the outstanding principal amount of Revolving Loans in excess of the
     Unaugmented Borrowing Base Amount, 3.50%, and (b) with respect to (i) the
     outstanding principal amount of Term Loans and (ii) the outstanding
     principal amount of Revolving Loans less than or equal to the Unaugmented
     Base Rate Amount, the interest rate margin set forth below opposite the
     Pricing Level for that Pricing Period:

<TABLE>
<CAPTION>
          PRICING LEVEL            EURODOLLAR MARGIN
          -------------            -----------------
          <S>                      <C>
               I                        1.50%
               II                       2.00%
               III                      2.50%
</TABLE>

     5. REDUCTION OF REVOLVING COMMITMENT. Notwithstanding the provisions of
SECTION 2.8, the Revolving Commitment is hereby reduced to $10,000,000. The
reference to "$ 12,000,000" contained in the definition of "REVOLVING
COMMITMENT" is hereby replaced with "$ 10,000,000".

     6. SECTION 1.1 - NEW DEFINITION OF "UNAUGMENTED BORROWING BASE AMOUNT". The
following definition is hereby added to the Loan Agreement:

          "UNAUGMENTED BORROWING BASE AMOUNT" means, the Borrowing Base, as set
     forth in the Borrowing Base Certificate most recently delivered to the

                                      -2-
<PAGE>

     Administrative Agent pursuant to SECTION 7.1(e), MINUS the applicable
     Borrowing Base Augmentation Amount.

     7. SECTION 6.5 - DISTRIBUTIONS AND OTHER RESTRICTED PAYMENTS. Each of the
parties hereto hereby agrees that the Distributions or other Restricted Payments
permitted by SECTION 6.5 (c) to by made to Landec, shall be suspended until such
time as the Borrowing Base Augmentation Amount shall have been permanently
reduced to zero and the aggregate principal amount of Revolving Loans
outstanding does not exceed the then applicable Borrowing Base as evidenced by a
certificate executed by a Responsible Official of Borrower.

     8. SECTION 6.21 - EARN-OUT PAYMENTS. SECTION 6.21 is hereby amended to (a)
delete the "and" at the end of SUBSECTION (ii), (b) delete the period at the end
of SUBSECTION (iii) and replace it with "; and" and (c) add a new SUBSECTION
(iv) as follows:

          "(iv) the Borrowing Base Augmentation Amount shall have been
     permanently reduced to zero and the aggregate principal amount of Revolving
     Loans outstanding does not exceed the then applicable Borrowing Base as
     evidenced by a certificate executed by a Responsible Official of Borrower."

     9. SECTION 7.1(b) - FINANCIAL AND BUSINESS INFORMATION. The first line of
SECTION 7.1(b) is hereby amended to replace "90 days" with "135 days".

     10. EXHIBIT B - BORROWING BASE CERTIFICATE. The Borrowing Base Certificate
attached to the Loan Agreement as EXHIBIT B is hereby amended and restated in
full in the form of ANNEX II attached to this Amendment.

     11. EFFECTIVENESS. This Amendment shall become effective on such date as
the Administrative Agent shall have received duly executed counterparts of (a)
this Amendment , (b) ANNEX I attached hereto, and (c) Annex III hereto, signed
by each Party thereto, each of the which shall be in form and substance
satisfactory to the Administrative Agent and the Lenders (the "Effective Date").

     12. REPRESENTATIONS AND WARRANTIES. Except (i) for representations and
warranties which expressly relate to a particular date or which are no longer
true and correct as a result of a change permitted by the Loan Agreement or the
other Loan Documents or (ii) as disclosed by Borrower and approved in writing by
the Requisite Lenders, the Borrower hereby represents and warrants that each
representation and warranty made by Borrower in ARTICLE 4 of the Loan Agreement
(other than SECTIONS 4.6 (first sentence), 4.11, and 4.18) are true and correct
as of the date hereof as though such representations and warranties were made on
and as of the date hereof. Without in any way limiting the foregoing, Borrower
represents and warrants to the Administrative Agent and the Lenders that no
Default or Event of Default has occurred and remains continuing or will result
from the consents, waivers, amendments or transactions set forth herein or
contemplated hereby.

                                      -3-

<PAGE>

     13. CONFIRMATION. In all respects, the terms of the Loan Agreement and the
other Loan Documents, in each case as amended hereby or by the documents
referenced herein, are hereby confirmed.

     IN WITNESS WHEREOF, Borrower, the Administrative Agent and the Lenders have
executed this Agreement as of the date first set forth above by their duly
authorized representatives.

                                APIO, INC., a Delaware corporation

                                By: /s/ GARY T. STEELE
                                   ---------------------------------------------
                                   Name: Gary T. Steele
                                   Title: Chairman of the Board

                                BANK OF AMERICA, N. A., as Administrative Agent,
                                Issuing Lender and sole Lender

                                By: /s/ JOHN PLECQUE
                                   ---------------------------------------------
                                   John Plecque, Senior Vice President

                                      S-1
<PAGE>

                           ANNEX I TO AMENDMENT NO. 2

               CONSENT AND REAFFIRMATION OF GUARANTOR AND PLEDGOR

     The undersigned guarantor and pledgor hereby consents to the execution,
delivery and performance by Borrower and the Administrative Agent of the
foregoing Amendment No. 2 to Loan Agreement ("Amendment No. 2"). In connection
therewith, the undersigned expressly and knowingly reaffirms its liability under
each of the Loan Documents to which it is a Party and expressly agrees (a) to be
and remain liable under the terms of each such Loan Document and (b) that it has
no defense, offset or counterclaim whatsoever against the Administrative Agent
or the Lenders with respect to any such Loan Document.

     The undersigned further agrees that each Loan Document to which it is a
Party shall remain in full force and effect and is hereby ratified and
confirmed.

     The undersigned further agrees that the execution of this Consent and
Reaffirmation of Guarantor and Pledgor is not necessary for the continued
validity and enforceability of any Loan Document to which it is a Party, but is
executed to induce the Administrative Agent and the Lenders to approve of and
otherwise enter into the Amendment No. 2.

     IN WITNESS WHEREOF, each of the undersigned, intending to be legally bound
hereby, has caused this Consent and Reaffirmation of Guarantor and Pledgor to be
executed as of February 28, 2001.

LANDEC CORPORATION, a California corporation

By: /s/ GARY T. STEELE
   -----------------------------------------
   Name: Gary T. Steele
   Title: President and CEO

                                      I-1

<PAGE>

                          ANNEX II TO AMENDMENT NO. 2

                                   EXHIBIT B

                           BORROWING BASE CERTIFICATE

                                      II-1

<PAGE>

                          ANNEX III TO AMENDMENT NO. 2

                           CONSENT AND ACKNOWLEDGMENT

     Each of the undersigned hereby consents to and acknowledges the execution,
delivery and performance by Borrower and the Administrative Agent of the
foregoing Amendment No. 2 to Loan Agreement ("Amendment No. 2"), including,
without limitation, Section 8 of Amendment No. 2. In connection therewith, each
of the undersigned expressly and knowingly agrees (a) to be subject to the terms
of Section 6.21 of the Loan Agreement, as amended from time to time, including
by Amendment No. 2 and (b) that it has no defense, offset or counterclaim
whatsoever against the Administrative Agent or the Lenders.

     IN WITNESS WHEREOF, each of the undersigned, intending to be legally
bound hereby, has caused this Consent and Acknowledgment to be executed as of
February 28, 2001.

                                             By:   /s/ NICHOLAS TOMPKINS
                                                --------------------------------
                                                       Nicholas Tompkins

                                             By:   /s/ KATHLEEN TOMPKINS
                                                --------------------------------
                                                       Kathleen Tompkins

                                     III-1

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