Document:

eAcceleration Corp.
                 Acceleration Software International Corporation
                             1223 NW Finn Hill Road
                            Poulsbo, Washington 98370

                                                           June 30, 2000

Millennium Capital Quest
222 Munson Road
Wolcott, Connecticut 06716

           Re:  Amendment and Termination Agreement dated May 1, 2000
                (the Agreement"), among the undersigned  and you
                -----------------------------------------------------

Gentlemen:

     This letter confirms the following:

     1.   Paragraph 5 of the Agreement is hereby amended to increase the
          exercise price of the five-year options referred to therein to $5.31
          per share;

     2.   The  five-year  options  referred  to in  paragraph  5 of the
          Agreement shall be  represented  by the option  certificate  attached
          hereto as Exhibit A, which hereby replaces  any and all other option
          certificate(s)  relating to the common  stock of  eAcceleration  Corp.
          and/or Acceleration Software  International  Corporation owned by you;
          and

     3.   Except as set forth above, all terms and provisions of the Agreement
          shall remain in full force and effect.

<PAGE>

     If the  foregoing  accurately  sets forth your  understanding,  please sign
where indicated below
                                             Very truly yours,

                                             EACCELERATION CORP.

                                             ACCELERATION SOFTWARE
                                             INTERNATIONAL CORPORATION

                                             By:  /s/ Clint Ballard
                                                -------------------------------
                                                Clint Ballard
                                                President

Accepted and agreed as of the date first above written:

MILLENNIUM CAPITAL QUEST

By: /s/ Gregg R. Nolan
   -----------------------
   Name:  Gregg R. Nolan
   Title: Chairman/CFO

<PAGE>

Exhibit A

THE OPTIONS EVIDENCED HEREBY AND THE SHARES OF COMMON STOCK ISSUABLE PURSUANT
HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
THE OPTIONS AND ANY SHARES OF COMMON STOCK ISSUABLE PURSUANT THERETO HAVE BEEN
AND WILL BE ACQUIRED FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO DISTRIBUTION
OR RESALE, AND MAY NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR THE OPTIONS AND/OR
SUCH SHARES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THE
OPTIONS AND SUCH SHARES TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER
SUCH ACT AND SUCH STATE SECURITIES LAWS.

          Void after 5:00 p.m. New York City time, on April 30, 2010.
                Option to Purchase 34,300 Shares of Common Stock.

                         OPTION TO PURCHASE COMMON STOCK
                                       of
                               eAcceleration Corp.

This is to certify that, FOR VALUE RECEIVED, MILLENIUM CAPITAL
QUEST, or permitted assigns ("Holder"), is entitled to purchase, subject to the
provisions of this option certificate, from eAcceleration Corp., a Delaware
corporation (the "Company"), 34,300 fully paid, validly issued and nonassessable
shares of the common stock, $.0001 par value (the "Common Stock"), of the
Company at an exercise price of $5.31 per share (the "Exercise Price"), at any
time or from time to time during the period commencing on the date hereof and
terminating on April 30, 2010 (the "Termination Date"), but not later than 5:00
p.m. New York City Time, on the Termination Date (subject to the provisions of
this option certificate). The number of shares of Common Stock to be received
upon the exercise of this option certificate and the price to be paid for each
share of Common Stock may be adjusted from time to time as hereinafter set
forth. The rights granted by this option certificate to purchase shares of
Common Stock are hereinafter sometimes referred to as the "Options;" the shares
of Common Stock deliverable upon exercise of the Options, as adjusted from time
to time, are hereinafter sometimes referred to as "Option Shares;" and the
exercise price of a share of Common Stock in effect at any time, as adjusted
from time to time, is hereinafter sometimes referred to as the "Exercise Price."
The Options have been granted outside of the Company's 1999 Stock

                                       1
<PAGE>

Incentive Compensation Plan (the "1999 Plan"); provided, however, that,
except as specifically provided in this option certificate, the Options shall be
governed and interpreted in accordance with the provisions of the 1999 Plan.

1. DURATION.

          Subject to the earlier termination as provided herein or under the
1999 Plan, the Option shall expire at the close of business on April 30, 2010
(the "Termination Date").

2. WRITTEN NOTICE OF EXERCISE.

          The Options may be exercised only by delivering to the President or
Secretary of the Company, at the Company's principal executive offices, of a
written notice of exercise substantially in the form described in paragraph 8
hereof.

3. ANTI-DILUTION PROVISIONS.

     (a) If there is any stock dividend, stock split, or combination of shares
of Common Stock, the number and amount of Option Shares then subject to the
Options shall be proportionately and appropriately adjusted as determined by the
Committee, whose determination shall be final, conclusive and binding upon
Holder and the Company.

     (b) If there is any other change in the Common Stock, including a
recapitalization, reorganization, sale or exchange of assets, exchange of
shares, offering of subscription rights, or a merger or consolidation in which
the Company is the surviving corporation, an adjustment, if any, shall be made
in the Option Shares then subject to the Options as the Board of Directors or
Committee may deem equitable, and whose determination shall be final, conclusive
and binding upon Holder and the Company. Failure of the Board of Directors or
the Committee to provide for an adjustment pursuant to this subparagraph prior
to the effective date of any Company action referred to in this Paragraph 3(b)
shall be conclusive evidence that no adjustment is required in consequence of
such action.

     (c) If the Company is merged into or consolidated with any other
corporation and the Company is not the surviving corporation, or if it sells all
or substantially all of its assets to any other corporation, then either (i) the
Company shall cause provisions to be made for the continuance of the Options
after such event, or for the substitution for the Options of an option covering
the number and class of securities which Holder would have been entitled to
receive in such merger or consolidation by virtue of such sale if Holder had
been the holder of record of a number of shares of Common Stock equal to the
number of Option Shares covered by the unexercised portion of the Options, or
(ii) the Company shall give to Holder written notice of its election not to
cause such provision to be made and the Options shall become exercisable in full
(or, at the election of Holder in part) at any time during a period of twenty
days, to be designated by the Company, ending not more than ten days prior to
the effective date of the merger,

                                       2
<PAGE>

consolidation or sale, in which case the Options shall not be exercisable
to any extent after the expiration of such twenty-day period. In no event,
however, shall the Options be exercisable after the Termination Date.

4. INVESTMENT REPRESENTATION AND LEGEND OF CERTIFICATES.

          Holder acknowledges and agrees that, for any period in which a
registration statement, with respect to the Options and/or Option Shares under
the Securities Act of 1933, as amended (the "Securities Act"), is not effective,
Holder shall hold the Options and will purchase and/or own the Option Shares for
investment and not for resale or distribution. The Company shall have the right
to place upon the face and/or reverse side of any stock certificate or
certificates evidencing the Option Shares such legend as the Committee may
prescribe for the purpose of preventing disposition of such Option Shares in
violation of the Securities Act.

5. NON-TRANSFERABILITY.

          The Options shall not be transferable by Holder other than by will or
by the laws of descent or distribution, and are exercisable during the lifetime
of Holder only by Holder. The terms of this option certificate shall be binding
upon the executors, administrators, heirs, successors and assigns of Holder.

6. CERTAIN RIGHTS NOT CONFERRED BY OPTION.

          Holder  shall not,  by virtue of holding  Options,  be entitled to any
rights of a stockholder in the Company.

7.   EXPENSES.

          The Company shall pay all original issue and transfer taxes with
respect to the issuance of Option Shares pursuant hereto and all other fees and
expenses necessarily incurred by the Company in connection therewith.

8. EXERCISE OF OPTIONS.

     (a) The Options shall become exercisable  cumulatively to the extent of the
total number of Option Shares on each of the following dates:

Date     Number of Option Shares
----     -----------------------

Immediately. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860
May 1, 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860
May 1, 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860
May 1, 2003. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860

                                       3
<PAGE>

May 1, 2004. . . . . . . . . . . . . . . . . . . . . . . . . . . .         6,860

     (b) The Options shall be exercisable, in whole or part and from time to
time, by written notice of such exercise, delivered to the President or
Secretary of the Company, at the Company's principal office by personal
delivery, against written receipt therefor, or by pre-paid, certified or
registered mail, return receipt requested. Such notice shall specify the number
of Option Shares for which Options are being exercised (which number, if less
than all of the Option Shares then subject to exercise, shall be 50 or an
integral multiple thereof) and shall be accompanied by payment of the full
exercise price for the Option Shares for which Options are being exercised.

     (c) The form of payment of the Exercise Price for Option Shares purchased
pursuant to Options shall consist of (i) cash; (ii) check (subject to
collection); (iii) in the discretion of the Board of Directors of the Company or
the Committee administering the 1999 Plan, by (A) delivery to the Company of a
promissory note, (B) surrender to the Company of other shares of Common Stock
owned by Holder which are then registered under the Securities Act or otherwise
publicly saleable under Rule 144 or other applicable exemption under the
Securities Act and have a fair market value on the date of surrender equal to
the aggregate Exercise Price of the Option Shares as to which Options shall be
exercised, (C) assignment to the Company of the net proceeds (to the extent
necessary to pay such Exercise Price) to be received from a registered broker
upon the sale of the Option Shares or assignment of the net proceeds (to the
extent necessary to pay such Exercise Price) of a loan from such broker in such
amount or (D) such other consideration and method of payment for the issuance of
stock to the extent permitted under Delaware law and satisfying the requirements
of Rule 16b-3 promulgated pursuant to the Securities Exchange Act of 1934, as
amended; or (iv) any combination of such methods of payment.

     (d) Any promissory note (the "Note") delivered pursuant to clause (iii)(A)
of paragraph 8(c) shall be in the form prescribed by the Board of Directors of
the Company or the Committee administering the 1999 Plan and shall be in the
principal sum of such total Exercise Price, bear interest at the applicable
federal rate (as such term is defined in the Code) in effect as of the date of
the Note and be duly executed by Holder.

     (e) No Shares shall be delivered upon exercise of Options until all laws,
rules and regulations which the Board of Directors of the Company or the
Committee administering the 1999 Plan may deem applicable have been complied
with. If a registration statement under the Securities Act is not then in effect
with respect to the shares issuable upon such exercise, the Company may require
as a condition precedent that Holder, upon exercising the Options, deliver to
the Company a written representation and undertaking, satisfactory in form and
substance to the Committee, that, among other things, Holder is acquiring the
shares for Holder's own account for investment and not with a view to the
distribution thereof.

     (f) Holder shall not be considered a record holder of the Option Shares so
purchased for any purpose until the date on which Holder is actually recorded as
the holder of such Option

                                       4
<PAGE>

Shares in the records of the Company.

     (g) In the event of Holder's death, disability or termination of
employment, the exercisability of Options shall be governed by the provisions of
the 1999 Plan, unless such provisions are waived by the Committee, in the
Committee's sole discretion.

Dated: As of May 1, 2000
                                                EACCELERATION CORP.

                                                  /s/ Clint Ballard
                                            By: --------------------------------
                                                Name:  Clint Ballard
                                                Title: President

          Holder acknowledges receipt of a copy of the 1999 Plan and certain
information related thereto and represents that Holder is familiar with the
terms and provisions thereof, and hereby accepts the Option subject to all of
the terms and provisions thereof. Holder has reviewed the 1999 Plan and this
option agreement in their entirety, has had an opportunity to obtain the advice
of counsel prior to executing this option agreement and fully understands all of
the terms and provisions of the Options and this option agreement. Holder hereby
agrees to accept as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions rising under the 1999 Plan.
Holder further agrees to notify the Company upon any change in the residence
address indicated below.

Accepted and agreed as of
May 1, 2000:

MILLENNIUM CAPITAL QUEST

By:  Gregg R. Nolan
   -----------------------------
    Name:  Gregg R. Nolan
    Title: Chairman/CFO

Address:  222 Munson Road
          Wilcott, CT 06716

                                       5<PAGE>   1

                                                                    EXHIBIT 10.1

                          EXCLUSIVE LICENSE AGREEMENT

        THIS AGREEMENT, effective as of the first day of May 1995 (hereinafter
"Effective Date"), by and between CORNELL RESEARCH FOUNDATION, INC., having
offices at Cornell Business & Technology Park, 20 Thornwood Drive, Suite 105,
Ithaca, New York 14850, hereinafter referred to as "FOUNDATION" and EDEN
BIOSCIENCE CORPORATION, having offices at 5795 N.E. Minder, Poulsbo, Washington
98370, hereinafter referred to as "LICENSEE".

                         W I T N E S S E T H  T H A T:

        WHEREAS, United States Patent Application No. [ * ], entitled [ * ], was
filed in the U.S. Patent & Trademark Office on [ * ], a copy of which is
appended as Exhibit A and Patent Application No. [ * ] is a continuation of U.S.
Patent Application No. [ * ] filed on [ * ] and the foreign equivalent [ * ] was
filed on [ * ] covering all EPC countries and Japan; and

        WHEREAS, United States Patent Application No. [ * ], entitled [ * ], was
filed in the U.S. Patent & Trademark Office on [ * ], a copy of which is
appended as Exhibit B and the foreign equivalent [ * ] was filed on [ * ]
covering all EPC countries and Japan; and

        WHEREAS, FOUNDATION intends to file a United States Patent Application
entitled [ * ] now Invention Disclosure [ * ], a copy of which is appended as
Exhibit C, and FOUNDATION intends to file foreign equivalents, where
appropriate, of said Invention Disclosure; and

        WHEREAS, FOUNDATION intends to file a United States Patent Application
entitled [ * ], now Invention Disclosure [ * ], a copy of which is appended as
Exhibit D, and FOUNDATION intends to file foreign equivalents, where
appropriate, of said Invention Disclosure; and

        WHEREAS, the inventions disclosed and claimed in Exhibits A, B, C and D
are, or will be assigned to FOUNDATION and FOUNDATION is a wholly owned
subsidiary corporation of Cornell University and holds the ownership interests
of patents issued on inventions made by Cornell University's staff and
administers licenses in a manner consistent with the patent policy of Cornell
University; and

        WHEREAS, FOUNDATION represents that it is, or will be assignee of the
above-identified patent applications and any patents issuing thereon and has the
right to grant licenses under said patent applications and patents issuing
thereon; and

        WHEREAS, the work leading to the inventions disclosed and to be claimed
in Exhibits A, B, C and D were supported in part by an agency of the U.S.
Government,

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                          PAGE 1

<PAGE>   2

FOUNDATION is obligated to comply with the U.S. Office of Management & Budgets
Circular No. A-124, or 37 CFR Part 401; and

        WHEREAS, Drs. Steven Beer, Alan Collmer and their colleagues at Cornell
University have developed proprietary biological materials and processes
relating to the field of plant disease and some of these materials and processes
are or will be claimed and covered in said patent applications of Exhibits A, B,
C and D and other such materials and processes are not claimed in said patent
applications but are proprietary to FOUNDATION; and

        WHEREAS, LICENSEE is desirous of securing a license under the
discoveries and inventions embodied in said patent applications and patents
issuing thereon as well as the discoveries and inventions embodied in said
related proprietary biological processes and materials to make, have made, use
and sell Licensed Products in the United States and throughout the world; and

        WHEREAS, FOUNDATION is willing to grant a license in said patent
applications and any patents issuing thereon as well as the discoveries and
inventions embodied in said related proprietary biological processes and
materials to LICENSEE upon the terms and conditions hereinafter set forth; and

        NOW, THEREFORE, in consideration of the covenants and obligations
hereinafter set forth, the parties hereto hereby agree as follows:

I.      DEFINITIONS

        The following definitions will apply throughout this agreement:

        1. Licensed Patent Application shall mean U.S. Patent Application Serial
No. [ * ] attached as Exhibit A and any continuation, continuation-in-part, or
divisional applications thereof as well as foreign counterparts thereof and U.S.
Patent Application Serial No. [ * ] attached as Exhibit B and any continuation,
continuation-in-part, or divisional applications thereof as well as foreign
counterparts thereof and any U.S. Patent Application based on Invention
Disclosure [ * ] attached as Exhibit C and any continuation,
continuation-in-part, or divisional applications thereof as well as foreign
counterparts thereof and any U.S. Patent Application based on Invention
Disclosure [ * ] attached as Exhibit D and any continuation,
continuation-in-part, or divisional applications thereof as well as foreign
counterparts thereof.

        2. Licensed Patent shall mean any U.S. Patents issuing from a Licensed
Patent Application, and all reissues thereof as well as foreign counterparts
thereof.

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                          PAGE 2

<PAGE>   3

        3. Licensed Biological Material shall mean that biological material
including genes, proteins and peptide fragments, expression systems, cells and
antibodies developed in the Cornell University Laboratories of Drs. Steven Beer,
Alan Collmer and their colleagues and which is directly related to the
inventions described in Licensed Patents or Licensed Patent Applications and
which is listed and described in Exhibit E or added to Exhibit E at a later time
by written mutual agreement of the parties.

        FOUNDATION and LICENSEE acknowledge that, to the best of their
knowledge, said list of Exhibit E is complete.

        4. Licensed Products shall mean any product or use claimed in a Licensed
Patent Application or Licensed Patent or any product or use which incorporates
or otherwise utilizes Licensed Biological Material.

        5. License Year shall mean each twelve (12) month period beginning on
the Effective Date of this Agreement first written above and thereafter on the
anniversary date thereof.

        6. LICENSEE shall mean the above named company and any of its affiliates
in which it owns or controls at least 50% of the voting stock.

        7. Net Sales Price shall mean [ * ].

II.     GRANT

        Subject only to the rights of and obligations to the U.S. Government as
set forth in U.S. Office of Management & Budget Circular A-124 or 37 CFR Part
401;

        The FOUNDATION hereby grants to the LICENSEE for the term set forth
below and under the royalty basis set forth below, an exclusive license to the
Licensed Patent Applications, Licensed Patents and Licensed Biological Materials
to make, have made, use and sell Licensed Products in the United States and
throughout the world. The term "exclusive license" as used hereinabove shall
mean that FOUNDATION shall not issue a license to another, within the period of
exclusivity set forth hereinafter or any agreed upon extension thereof.
FOUNDATION shall not make, have made, use or sell Licensed Products. Cornell
University researchers shall

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                          PAGE 3

<PAGE>   4

retain the royalty-free right to use Licensed Patent Applications, Licensed
Patents and Licensed Biological Materials for internal research purposes and
such use shall not prohibit such researchers from producing inventions and, if
such inventions are made solely by said Cornell University researchers, such
inventions shall be the property of FOUNDATION. If such inventions are made
jointly by said Cornell University researchers and employees of LICENSEE, such
inventions shall be the joint property of FOUNDATION and LICENSEE.

III.    TO HAVE MADE

        The right of LICENSEE to make Licensed Products includes the right to
have made by contract with third parties within a country where LICENSEE is
licensed and patent protection for Licensed Products exists or is pending. Such
contractual arrangements with third parties shall be subject to and conditioned
upon appropriate supervision and quality assurance and control of the third
party by LICENSEE and the third party shall respect all rights of FOUNDATION and
to supply all production of Licensed Products exclusively to LICENSEE or its
designee(s).

IV.     PAYMENTS MADE IN CONSIDERATION OF THE EXECUTION OF THIS LICENSE
        AGREEMENT

        FOUNDATION hereby acknowledges a payment, due upon approval of this
Agreement by the Board of Directors of FOUNDATION (or at least by the Executive
Committee of that Board), of four hundred thousand (400,000) equity shares of
common stock in LICENSEE which amount equals seven and fourteen hundredths
percent (7.14%) of LICENSEE'S total issued stock as of Effective Date, made by
LICENSEE as a consideration for entering into this Agreement, which sum will not
be considered as an advance payment on royalties due hereunder. It is understood
by the parties that said equity shares in LICENSEE held by FOUNDATION shall be
non-voting and FOUNDATION shall take no management role in LICENSEE.

        If said approval by the Board of Directors of FOUNDATION is not obtained
within six (6) months of the Effective Date, FOUNDATION and LICENSEE agree to
renegotiate alternative financial terms as consideration for entering into this
Agreement.

        The parties acknowledge that LICENSEE may, upon termination of this
Agreement, cancel said equity shares according to the following schedule:

        1)      Upon termination of this Agreement at any time up to [ * ] from
                the Effective Date, LICENSEE may cancel up to [ * ] of the total
                equity

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                          PAGE 4

<PAGE>   5

                shares which were issued to FOUNDATION and approved by
                FOUNDATION'S Board of Directors.

        2)      Upon termination of this Agreement at any time from [ * ] from
                the Effective Date up to [ * ], LICENSEE may cancel up to [ * ]
                of the total equity shares which were issued to FOUNDATION and
                approved by FOUNDATION'S Board of Directors.

        3)      Upon termination of this Agreement at any time from [ * ] until
                [ * ] LICENSEE may cancel up to [ * ] of the total equity shares
                which were issued to FOUNDATION and approved by FOUNDATION's
                Board of Directors.

        4)      Upon termination of this Agreement at any time from [ * ] to
                [ * ], LICENSEE may cancel up to [ * ] of the total equity
                shares which were issued to FOUNDATION and approved by
                FOUNDATION'S Board of Directors.

        5)      Upon termination of this Agreement at any time from [ * ] to
                [ * ], LICENSEE may cancel up to [ * ] of the total equity
                shares which were issued to FOUNDATION and approved by
                FOUNDATION'S Board of Directors.

        6)      Upon termination of this Agreement at any time after [ * ]
                LICENSEE may not cancel any of the total equity shares which
                were issued to FOUNDATION and approved by FOUNDATION'S Board of
                Directors.

        As additional consideration, LICENSEE will fund research activity in the
Cornell University laboratories of Dr. Steven Beer and his colleagues at a level
not less than [ * ] in License Year 1 and [ * ] in each of License Year 2 and
License Year 3. Said funding shall be contingent upon a mutually agreed workplan
and budget for said research activity and such amounts are inclusive of all
costs including direct and indirect costs.

        Any inventions made using the research funding, described above,
provided to Dr. Beer and his colleagues by LICENSEE which are dominated by the
claims of Licensed Patent Applications or Licensed Patents shall, to the extent
possible considering FOUNDATION'S obligations to third parties, be subject to
the terms and conditions of this Agreement and shall be included herein by
letter amendment to this Agreement.

        Any inventions made using the research funding provided to Dr. Beer by
LICENSEE which are not dominated by the claims of Licensed Patent Applications
or

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                          PAGE 5

<PAGE>   6

Licensed Patents shall not be subject to the terms and conditions of this
Agreement. FOUNDATION shall provide LICENSEE the first opportunity to negotiate
to obtain an exclusive license in such inventions and will not offer any third
party any license having more favorable terms and conditions unless those terms
and conditions have first been offered to and refused by LICENSEE.

V.      FOREIGN PATENTS AND PAYMENT OF COSTS

        As the opportunity to continue prosecution of foreign counterpart
applications of United States Patent Applications No. [ * ] and No. [ * ] and to
file foreign counterpart applications on the U.S. patent applications to be
filed on Invention Disclosures [ * ] and [ * ] exists, LICENSEE may designate
foreign countries where counterpart applications shall be filed. Title to such
foreign patent applications shall be in FOUNDATION. LICENSEE agrees to pay for
all expenses incurred in the preparation, filing, prosecution, renewal and
continuation of Licensed Patents and Licensed Patent Applications in said
designated countries including all taxes, official fees and attorney's fees, as
well as a [ * ] administrative fee assessed by FOUNDATION. Notwithstanding the
foregoing, LICENSEE may elect in writing to be released from its license in any
of the Licensed Patents and Applications in foreign countries at any time after
initial filing costs have been paid, in which event it shall thereafter have no
obligation to reimburse FOUNDATION for any future expenses relating to such
patent or patent application. Upon approval of this Agreement by the
FOUNDATION's Board of Directors, LICENSEE shall reimburse FOUNDATION for all
direct and documentable foreign patent costs incurred to date, plus said [ * ]
administrative fee assessed by FOUNDATION.

VI.     PAYMENT OF U.S. PATENT COSTS

        Where renewal fees are due on a Licensed Patent in the United States and
LICENSEE remains exclusively licensed or is the sole nonexclusive licensee,
LICENSEE agrees to reimburse FOUNDATION for the costs of said renewal within
thirty (30) days of Notice thereof to LICENSEE by FOUNDATION.

        Where Licensed Patent Applications are pending in the United States
LICENSEE agrees to pay all direct and documentable prosecution costs for such
Licensed Patent Applications at least through an appeal to the U.S. Patents &
Trademark Office Board of Appeals plus a [ * ] administrative fee assessed by
FOUNDATION.

        Notwithstanding the foregoing, LICENSEE may elect in writing to be
released from its license in any of the Licensed Patents and Applications in the
United States at any time after initial filing costs have been paid, in which
event it shall thereafter have

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                          PAGE 6

<PAGE>   7

no obligation to reimburse FOUNDATION for any future expenses relating to such
patent or patent application.

        Upon approval of this Agreement by FOUNDATION's Board of Directors,
LICENSEE shall reimburse FOUNDATION for all direct and documentable costs
related to Licensed U.S. Patent Applications incurred to date, plus a [ * ]
administrative fee assessed by FOUNDATION; such amount, including equivalent
Foreign Patent costs described hereinabove is expected to approximate [ * ] as
of the Effective Date.

VII.    PATENT PROSECUTION MANAGEMENT

        The parties acknowledge the importance of cooperating on the ongoing
management of prosecution of Licensed Patent Applications. FOUNDATION agrees to
utilize patent counsel selected by FOUNDATION and reasonably approved by
LICENSEE for the purpose of filing and prosecuting Licensed Patent Applications.
FOUNDATION further agrees to consult with LICENSEE in a timely manner concerning
(i) the scope and content of Licensed Patent Applications (ii) the strategy and
tactics of patent prosecution, (iii) content of proposed responses to official
actions of the United States Patent and Trademark Office and foreign patent
offices during prosecution of such patent applications and (iv) cost of patent
prosecution. For purposes of this paragraph, "timely shall mean whenever
possible, sufficiently in advance of any patent prosecution decision by the
FOUNDATION so as to allow LICENSEE to meaningfully review such decision or
written response and provide comments to FOUNDATION in advance of such decision
or deadline so that LICENSEE's comments can be considered and incorporated into
FOUNDATION's decision or written response.

        Additionally, it is FOUNDATION's intent to transfer responsibility for
management of patent prosecution and maintenance activity on Licensed Patent
Applications and Licensed Patents to LICENSEE two (2) years from the Effective
Date. Such transfer shall be contingent upon LICENSEE's agreement to utilize
patent counsel selected by LICENSEE and reasonably approved by FOUNDATION for
the purpose of filing and prosecuting Licensed Patent Applications and
maintaining Licensed Patents. Upon such transfer, LICENSEE shall further agree
to consult with FOUNDATION in a timely manner concerning (i) the scope and
content of Licensed Patent Applications (ii) the strategy and tactics of patent
prosecution and (iii) content of proposed responses to official actions of the
United States Patent and Trademark Office and foreign patent offices during
prosecution of such patent applications. For purposes of this paragraph,
"timely" shall mean sufficiently in advance of any patent prosecution decision
by the LICENSEE so as to allow FOUNDATION to meaningfully review such decision
or written response and provide comments to

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                          PAGE 7

<PAGE>   8

LICENSEE in advance of such decision or deadline so that FOUNDATION's comments
can be considered and incorporated into LICENSEE's decision or written response.
Such transfer shall also be contingent upon LICENSEE's demonstration to
FOUNDATION that it can and will comply with the following:

        a)      all documents related to the prosecution of Licensed Patent
                Applications shall show Cornell Research Foundation as the
                Assignee of record;

        b)      LICENSEE shall ensure that FOUNDATION be provided copies of all
                correspondence and documents related to said patent prosecution
                and maintenance management;

        c)      LICENSEE shall ensure that all maintenance fees on all Licensed
                Patents be paid and that in no event shall Licensed Patents be
                allowed to lapse for failure to pay such fees without the
                concurrence of FOUNDATION on such lapse.

        Although it is FOUNDATION's intention to allow LICENSEE to continue said
responsibility for patent prosecution and maintenance for the duration of this
exclusive license Agreement, FOUNDATION reserves the right to reassume such
responsibility if it can show that LICENSEE's efforts are insufficient in
carrying out such activities.

        Should the exclusive license granted hereunder to LICENSEE become
non-exclusive, FOUNDATION shall have the responsibility for filing, prosecuting
and maintaining all Licensed Patent Applications and Licensed Patents at its own
expense.

VIII.   ROYALTIES AND MINIMUM ROYALTIES TO BE PAID DURING THE LICENSE AGREEMENT

        LICENSEE will pay to the FOUNDATION a royalty of [ * ] of the Net Sales
Price of Licensed Products made, used or sold by LICENSEE in the United States
and throughout the world.

        LICENSEE'S obligation to pay the [ * ] royalty rate upon each such
product shall cease in a particular country:

                (i)     if the applicable claims in the Licensed Patent in any
                        particular country are held invalid by an unappealed or
                        unappealable decision of a court of competent
                        jurisdiction in that particular country, or

                (ii)    upon expiration of the last said Licensed Patent; or

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                          PAGE 8

<PAGE>   9

                (iii)   if FOUNDATION abandons its patent solicitation efforts
                        for all Licensed Patent Applications and no Licensed
                        Patent is in force.

        Provided however, should no Licensed Patent issue and all Licensed
Patent Applications are abandoned but LICENSEE utilizes a Licensed Biological
Material to make, use or sell Licensed Products, LICENSEE will pay to FOUNDATION
a royalty of [ * ] of the Net Sales Price of Licensed Products made, used or
sold by LICENSEE in the United States and throughout the world.

        Beginning with the fifth License Year, each License Year LICENSEE shall
pay FOUNDATION a minimum annual royalty payment according to the following
schedule:
               [ * ]

        Such payments shall be made quarterly throughout the License Year and
such moneys will be considered as a credit for the royalties due for that
License Year under this Agreement and the royalty reports should reflect the use
of such credit. Such provision is to be construed as an annual minimum royalty
payment requirement and none of the minimum royalty payments are refundable or
applicable to succeeding License Years.

        In License Years 5, 6 and 7, LICENSEE may credit the direct and
documentable costs it has expended on research and development of transgenic
organism applications of Licensed Patent Applications and Licensed Patents
against up to [ * ] of minimum annual royalties owed for those License Years.

        In the event LICENSEE is required to pay royalties to a third party in
order to make, use or sell Licensed Products, FOUNDATION shall review the
minimum annual royalty payment obligation described hereinabove and agrees to
negotiate in good faith with LICENSEE to make adjustments in such payment
obligations.

        In any event, sales from non-transgenic plant applications must
constitute at least [ * ] of the total minimum annual royalty payment
obligation.

        In the event that this Agreement is converted to a field-of-use
exclusive license, non-exclusive license or semi-exclusive license in the field
of transgenic organisms according to the "TERM" (IX) and "DUE DILIGENCE" (X)
Sections hereinbelow, the minimum annual royalty payments described hereinabove
shall be reduced by [ * ].

        It is acknowledged and agreed that the minimum annual royalty payment
shall be allocated between the field of non-transgenic applications and the
field of transgenic organisms in the ratio of [ * ] of the minimum annual
royalty payment is

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                          PAGE 9

<PAGE>   10

allocated to the field of non-transgenic applications and [ * ] is allocated to
the field of transgenic organisms) and the sole remedy of FOUNDATION for
nonpayment of either portion of such minimum annual royalty payment shall be
(after notice of such nonpayment and opportunity to cure) termination of the
license rights for the field of use to which the portion of the payment applies.

IX.     FAVORED NATIONS

        If FOUNDATION grants a non-exclusive license to others under a Licensed
Patent Application or Licensed Patent, such licenses will not be granted at a
royalty rate which is more favorable than the rate herein granted to LICENSEE
unless such more favorable rates are extended to LICENSEE. This Favored Nations
clause does not apply to license agreements which are in settlement of patent
litigation.

X.      ACCOUNTING AND PAYMENT SCHEDULE

        Payment, reporting and financial accounting shall be on a quarterly
basis and LICENSEE will deliver to the FOUNDATION within ninety (90) days after
the end of each quarter of the License Year a report in writing setting forth
sales of Licensed Products (including a negative report if appropriate) and will
accompany such report with an appropriate payment of royalty or minimum royalty
due for such period. LICENSEE will keep accurate records, certified by it,
showing the information by which LICENSEE arrived at a royalty determination and
will permit a person appointed by the FOUNDATION and acceptable to LICENSEE to
make such inspection of said records as may be necessary to verify royalty
reports made by LICENSEE.

        Conversion from foreign currencies, if any, shall be based upon the
conversion rate on the date that payment in due.

        Payments which are delayed beyond the sixty (60) days after the end of
the quarter in which they become due shall be subject to a [ * ] per annum
interest charge.

XI.     TERM

        The aforesaid exclusive license under Licensed Patent Applications,
Licensed Patents and Licensed Biological Material shall last for a period ending
on the expiration date of the last to expire Licensed Patent or, should only
Licensed Biological Materials be licensed, then for a period of fifteen (15)
years from the date of this Agreement.

        By mutual agreement of FOUNDATION and LICENSEE, this Agreement may be
converted into a field-of-use exclusive license. Said field-of-use exclusive
license

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                         PAGE 10

<PAGE>   11

would only rescind LICENSEE's rights to make, use and sell Licensed Products in
the field of transgenic organisms.

XII.    DUTY OF DILIGENCE

        LICENSEE shall exercise reasonable due diligence to affect the
introduction of Licensed Products into the commercial market as soon as
practical. LICENSEE agrees to develop and exploit Licensed Products with
reasonable diligence by manufacture and sale of Licensed Products for the
duration of the term of this Agreement. LICENSEE further agrees to maintain
quality control over Licensed Products and generally attend to proper, safe,
fair, lawful and reasonable development and exploitation of the market for
Licensed Products. Failure of LICENSEE to materially comply with the provisions
of this Paragraph shall be considered a material breach of this Agreement.

        LICENSEE's reasonable due diligence obligations shall include the
expressed pursuit to affect introduction of Licensed Products into the field of
transgenic organisms. In order for LICENSEE to retain the exclusive license in
the field of transgenic organisms, LICENSEE must accomplish one of the following
within [ * ] of the Effective Date:

        [ * ]

        [ * ]

        [ * ]

        In the event LICENSEE fails to accomplish at least one of the
alternatives described above, FOUNDATION may, at its sole discretion, convert
this Agreement to a field-of-use exclusive license which shall wholly rescind
LICENSEE's rights to make, use and sell Licensed Products in the field of
transgenic organisms. Alternatively, in the event LICENSEE fails to accomplish
at least one of the alternatives described above, FOUNDATION may, at its sole
discretion, convert this Agreement to a non-exclusive or semi-exclusive license
in the field of transgenic organisms. In the event of such conversion from
exclusive to said field-of-use exclusive or non-exclusive or semi-exclusive
license, FOUNDATION shall be free to license others in the field of transgenic
organisms.

XIII.   INFRINGEMENT OF LICENSED PATENT RIGHTS BY THIRD PARTIES

        In the event that any infringement of a Licensed Patent shall come to
the attention of the FOUNDATION or LICENSEE, then FOUNDATION and LICENSEE

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                         PAGE 11

<PAGE>   12

shall duly inform each other. FOUNDATION, shall, in its sole discretion
determine whether or not to prosecute a patent infringement action. If
FOUNDATION determines and elects not to prosecute a patent infringement action,
then LICENSEE may cause legal proceedings against the alleged infringer at its
own expense and in the name of FOUNDATION, if necessary, if there is a showing
of substantial likelihood of infringement and that no other action for
infringement is pending at the time so that only one such lawsuit is pending at
any time.

        LICENSEE may defray the expenses of any such lawsuit to the extent of [
* ] of royalties payable by LICENSEE during the course of and directly related
to such legal proceedings. Out of any damages or awards recovered by LICENSEE in
such action conducted by LICENSEE, LICENSEE will first recover its expenses for
conducting said litigation beyond the costs defrayed by withheld royalties.
FOUNDATION will then recover all royalties up to the [ * ] of royalties payable
by LICENSEE to FOUNDATION and withheld by LICENSEE to defray costs of such
lawsuit. FOUNDATION will also recover any expenses which it incurred on behalf
of the litigation. Any amount remaining belongs to LICENSEE, if LICENSEE
conducts the litigation, provided that on such amount LICENSEE shall pay
FOUNDATION a royalty as provided for in VIII above. If FOUNDATION conducts the
litigation, at its own expense, out of any amount recovered, FOUNDATION shall
first recover any expenses which it incurred on behalf of the litigation, next
LICENSEE shall recover direct and documentable losses including opportunity
costs caused by said infringement and any amount remaining shall belong to
FOUNDATION.

        In any proceedings, FOUNDATION shall be entitled to employ, at its own
expense, counsel and control the course of litigation if, in FOUNDATION's sole
discretion, LICENSEE's defense of patent rights is insufficient, or if LICENSEE
fails to carry on vigorous prosecution of said patent rights.

        In the event LICENSEE seeks, with justifiable cause, to prosecute more
than one lawsuit at a time, FOUNDATION will not unreasonably withhold permission
where such actions are conducted entirely at LICENSEE's expense including
reimbursement of FOUNDATION's expenses incurred on behalf of such action.

        In any action brought by LICENSEE, LICENSEE undertakes to indemnify for
and hold FOUNDATION harmless from any damages, costs or expenses incurred by
reason of such litigation.

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                         PAGE 12

<PAGE>   13

XIV.    ASSIGNMENT

        The rights and obligations of the LICENSEE are not assignable but with
one exception which is that those rights and obligations may be assigned in
connection with the sale of all or substantially all of the assets of LICENSEE
to a third party.

XV.     SUBLICENSING

        LICENSEE may grant sublicenses under Licensed Patent Applications,
Licensed Patents and Licensed Biological Material with prior approval of
FOUNDATION, which approval shall not be withheld unless FOUNDATION can show a
substantial likelihood that such sublicensee would not perform its obligations
under sublicense agreement or that the sublicensee is an organization of a
character such that FOUNDATION and Cornell University may encounter a
substantial risk of substantial, long term and public criticism as a public
institution for providing its proprietary technology to such an organization,
e.g. more than internal student and/or faculty protestors and likely to cause
long term problems. Upon written notification of FOUNDATION by LICENSEE of its
intent to sublicense, FOUNDATION shall have thirty (30) days within which to
notify LICENSEE of FOUNDATION's disapproval of such sublicense and to provide
the reasons of such disapproval, after which such approval shall be deemed
given. LICENSEE agrees that said sublicensees are obligated in writing to all
terms and conditions of this Agreement beneficial to or protective of FOUNDATION
and that LICENSEE shall guarantee compliance of the sublicense on all such
provisions.

        Sublicense royalty income may be credited against LICENSEE's minimum
annual royalty payment obligations described in "ROYALTIES . . . Section VII,
hereinabove.

XVI.    TERMINATION

        In the event FOUNDATION finds LICENSEE to be in substantial
noncompliance with any of the material terms and conditions of this Agreement,
FOUNDATION shall so notify LICENSEE in writing. LICENSEE shall have six months
after receipt of such notification within which to remedy such noncompliance to
the satisfaction of FOUNDATION. If LICENSEE does not remedy a material
noncompliance within said six month period, FOUNDATION may terminate this
License Agreement. Upon giving such notice, LICENSEE shall have no obligations
for minimum royalties, patent expenses or research funding beyond the
termination date.

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                         PAGE 13

<PAGE>   14

        LICENSEE may terminate this License Agreement by giving notice of its
intentions to do so six (6) months before termination.

        Upon termination of this Agreement, any sublicensee that is not then in
material breach shall have its sublicense converted to a direct license from
FOUNDATION under the terms and conditions of this Agreement, as further limited
and restricted by the terms of the original sublicense.

XVII.   ARBITRATION AND JURISDICTION

        All disputes over the meaning and interpretation of this Agreement shall
be resolved by conciliation and mediation and if mediation is unsuccessful then
disputes shall be finally settled by an Arbitrator selected by FOUNDATION and
LICENSEE. If FOUNDATION and LICENSEE cannot agree on an Arbitrator, then
disputes shall be resolved by an Arbitration Panel comprising one arbitrator
appointed by FOUNDATION, one arbitrator appointed by LICENSEE, and a Chairman of
the Arbitration Panel appointed by the first two arbitrators. Any such
arbitration proceeding shall be conducted in accordance with generally accepted
arbitration rules; shall be held in the State of New York, unless otherwise
agreed by the parties; and judgment upon the arbitration award may be entered in
any court having jurisdiction.

        In order to initiate procedures for dispute resolution by conciliation,
mediation and arbitration either party may give written notice to the other of
intention to resolve a dispute, and absent satisfactory resolution, then to
arbitrate. Such notice shall contain a statement setting forth the nature of the
dispute and the resolution sought. If, within thirty (30) days of such notice a
resolution by conciliation between the parties themselves or by mediation has
not been achieved to the satisfaction of both parties, and if within sixty (60)
days from said written notice an Arbitrator or Arbitration Panel has not been
appointed with an arbitration schedule satisfactory to both parties, then either
party may proceed with judicial remedies.

        The FOUNDATION reserves the right and power to proceed with direct
judicial remedies against LICENSEE without conciliation, mediation or
arbitration for breach of the royalty payment and sales reporting provisions of
this Agreement after giving written notice of such breach to LICENSEE followed
by an opportunity period of thirty (30) days in which to cure such breach. In
collecting overdue royalty payments and securing compliance with reporting
obligations, FOUNDATION may use all judicial remedies available.

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                         PAGE 14

<PAGE>   15

XVIII.  OTHER

        LICENSEE agrees that it will not use the indicia or names FOUNDATION or
of Cornell University or any of their personnel in advertising, promotion, or
labeling of Licensed Products without prior written approval of the FOUNDATION.

        Title to all Licensed Biological Materials remains with FOUNDATION and
LICENSEE's rights in Licensed Biological Materials is by way of bailment with
rights sufficient to carry out the purposes of this Agreement. Upon termination
of this Agreement for cause by FOUNDATION, LICENSEE shall return all Licensed
Biological Materials, progeny and derivatives thereof, in whatever form, to
FOUNDATION or certify their destruction, at the option of FOUNDATION. Upon the
natural termination of this Agreement, LICENSEE may continue to use Licensed
Biological Materials without accounting to or recourse by FOUNDATION.

        FOUNDATION makes no representations other than those specified in the
WHEREAS clauses. FOUNDATION MAKES NO EXPRESS OR IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

        FOUNDATION by this Agreement makes no representation as to the
patentability and/or breadth of the inventions and/or discoveries involved in a
Licensed Patent. FOUNDATION by this Agreement makes no representation as to
patents now held or which will be held by others in the field of the Licensed
Products for a particular purpose.

        LICENSEE agrees to defend, indemnify and hold FOUNDATION harmless from
and against all liability, demands, damages, expenses or losses for death,
personal injury, illness or property damage (including reasonable attorney's
fees) arising (a) out of use by LICENSEE or its transferees of inventions
licensed or information furnished under this Agreement, or (b) out of any use,
sale or other disposition by LICENSEE or its transferees of products made by use
of such inventions or information. As used in this clause, "FOUNDATION" includes
its Trustees, Officers, Agents and Employees, and those of Cornell University,
and "LICENSEE" includes its Affiliates, Subsidiaries, Contractors and
Sub-Contractors.

        In discharge of the above and with respect to Licensed Products,
LICENSEE shall secure and maintain product liability insurance commensurate with
the reasonable standards of the industry. Upon written request from FOUNDATION,
LICENSEE shall provide FOUNDATION with evidence of such insurance coverage.

        This Agreement shall be interpreted under the Laws of the State of New
York.

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                         PAGE 15

<PAGE>   16

        Reports, notices and other communications to the FOUNDATION shall be
addressed to:

               H. Walter Haeussler, President
               CORNELL RESEARCH FOUNDATION, INC.
               Cornell Business & Technology Park
               20 Thornwood Drive, Suite 105
               Ithaca, New York 14850

and notices and other communications to the LICENSEE to:

               Jerry L. Butler, President
               Eden Bioscience Corporation
               5795 N.E. Minder
               Poulsbo, Washington 98370

        IN WITNESS WHEREOF, the parties have caused this instrument to be
executed in duplicate as of the day and year first above written.

ATTEST:                                   CORNELL RESEARCH FOUNDATION, INC.

                                          By      /s/ H. Walter Haeussler
---------------------------------               --------------------------------
                                                  H. Walter Haeussler
                                          Title   President
                                                --------------------------------
                                          Date
                                                --------------------------------
ATTEST:

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

                                          Date
                                                --------------------------------

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                                                         PAGE 16

<PAGE>   17
                                AMENDMENT TO THE
                           EXCLUSIVE LICENSE AGREEMENT

             BETWEEN EDEN BIOSCIENCE AND CORNELL RESEARCH FOUNDATION
                  WHICH WAS EFFECTIVE THE FIRST DAY OF MAY 1995

               THIS AMENDMENT (effective as of the first day of February 1997)
to that Exclusive License Agreement referenced above, by and between CORNELL
RESEARCH FOUNDATION, INC., having offices at Cornell Business & Technology Park,
20 Thornwood Drive, Suite 105, Ithaca, New York 14850, hereinafter referred to
as "FOUNDATION" and EDEN BIOSCIENCE CORPORATION, having offices at 5795 N.E.
Minder, Poulsbo, Washington 98370, hereinafter referred to as "LICENSEE".

                                WITNESSETH THAT:

               WHEREAS, FOUNDATION and LICENSEE have previously entered into the
Exclusive License Agreement (effective date of 1 May 1995) which this Amendment
is attached thereto, in which FOUNDATION granted certain exclusive rights in
several patentable technologies developed at Cornell University to LICENSEE; and

               WHEREAS, FOUNDATION and LICENSEE mutually agree that said
Exclusive License Agreement should be modified to include additional patentable
technologies to those described in said Exclusive License Agreement; and

               WHEREAS, FOUNDATION and LICENSEE also agree that said Exclusive
License Agreement should be modified as defined hereinbelow; and

               NOW, THEREFORE, in consideration of the covenants and obligations
hereinafter set forth, the parties hereto hereby agree as follows:

PRIMACY OF AMENDMENT

               The parties agree that the terms and conditions of this Amendment
shall take precedence over those contained in the Exclusive License Agreement.

WHEREAS

               The Whereas clauses of the Exclusive License Agreement shall be
entirely replaced with the following:

               WHEREAS, United States Patent Application No. [*] entitled [*],
was filed in the U.S. Patent & Trademark Office on [*], a copy of which is
appended as Exhibit A and

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

<PAGE>   18
Patent Application No. [*] is a continuation of U.S. Patent Application No. [*]
filed on [*] and the foreign equivalent [*] was filed on [*] covering all EPC
countries and Japan; and

               WHEREAS, United States Patent Application No. [*] entitled [*],
was filed in the U.S. Patent & Trademark Office on [*], a copy of which is
appended as Exhibit B and the foreign equivalent [*] was filed on [*] covering
all EPC countries and Japan; and

               WHEREAS, United States Patent Application No. [*], entitled [*],
was filed in the U.S. Patent & Trademark Office on [*], a copy of which is
appended as Exhibit C and the foreign equivalent [*] was filed on [*] covering
all EPC countries and Japan; and

               WHEREAS, United States Patent Application No. [*], entitled [*],
was filed in the U.S. Patent & Trademark Office on [*], a copy of which is
appended as Exhibit D; and

               WHEREAS, FOUNDATION intends to file a United States Patent
application entitled [*], now Invention Disclosure [*], a copy of which is
appended as Exhibit E, and FOUNDATION intends to file foreign equivalents, where
appropriate, of said Invention Disclosure; and

               WHEREAS, FOUNDATION intends to file a United States Patent
Application entitled [*], a copy of which is appended as Exhibit F. and
FOUNDATION intends to file foreign equivalents, where appropriate, of said
Invention Disclosure; and

               WHEREAS, FOUNDATION intends to file a United States Patent
Application entitled [*], now Invention Disclosure [*], a copy of which is
appended as Exhibit G. and FOUNDATION intends to file foreign equivalents, where
appropriate, of said Invention Disclosure; and

               WHEREAS, FOUNDATION intends to file a United States Patent
Application entitled [*], now Invention Disclosure [*], a copy of which is
appended as Exhibit H. and FOUNDATION intends to file foreign equivalents, where
appropriate, of said Invention Disclosure; and

               WHEREAS, FOUNDATION intends to file a United States Patent
Application entitled [*], now Invention Disclosure [*], a copy of which is
appended as Exhibit I, and FOUNDATION intends to file foreign equivalents, where
appropriate, of said Invention Disclosure; and

               WHEREAS, the inventions disclosed and claimed in Exhibits A, B.
C, D, E, F. G. H and I are, or will be assigned to FOUNDATION and FOUNDATION is
a wholly owned subsidiary corporation of Cornell University and holds the
ownership interests of patents issued on inventions made by Cornell University's
staff and

[*] DESIGNATES  OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                       -2-
<PAGE>   19
administers licenses in a manner consistent with the patent policy of Cornell
University; and

               WHEREAS, FOUNDATION represents that it is, or will be assignee of
the above-identified patent applications and any patents issuing thereon and has
the right to grant licenses under said patent applications and patents issuing
thereon; and

               WHEREAS, the work leading to the inventions disclosed and to be
claimed in Exhibits A, B. C, D, E, F. G. H and I were supported in part by an
agency of the U.S. Government, FOUNDATION is obligated to comply with the U.S.
Office of Management & Budgets Circular No. A124, or 37 CFR Part 401; and

               WHEREAS, Drs. Steven Beer, Alan Collmer and their colleagues at
Cornell University have developed proprietary biological materials and processes
relating to the field of plant disease and some of these materials and processes
are or will be claimed and covered in said patent applications of Exhibits A, B.
C, D, E, F. G. H and I and other such materials and processes are not claimed in
said patent applications but are proprietary to FOUNDATION; and

               WHEREAS, LICENSEE is desirous of securing a license under the
discoveries and inventions embodied in said patent applications and patents
issuing thereon as well as the discoveries and inventions embodied in said
related proprietary biological processes and materials to make, have made, use
and sell Licensed Products in the United States and throughout the world; and

               WHEREAS, FOUNDATION is willing to grant a license in said patent
applications and any patents issuing thereon as well as the discoveries and
inventions embodied in said related proprietary biological processes and
materials to LICENSEE upon the terms and conditions hereinafter set forth; and

               NOW, THEREFORE, in consideration of the covenants and obligations
hereinafter set forth, the parties hereto hereby agree as follows:

DEFINITIONS

               The Definitions section (I) of the Exclusive License Agreement
shall be entirely replaced-with the following:

               1. LICENSED PATENT APPLICATION shall mean U.S. Patent Application
Serial No. [*] attached as Exhibit A and any continuation, continuation-in-part,
or divisional applications thereof as well as foreign counterparts thereof and
U.S. Patent Application Serial No. [*] attached as Exhibit B and any
continuation, continuation in-part, or

[*] DESIGNATES  OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                       -3-
<PAGE>   20
               divisional applications thereof as well as foreign counterparts
               thereof and U.S. Patent Application Serial No. [*] attached as
               Exhibit C and any continuation, continuation-in-part, or
               divisional applications thereof as well as foreign counterparts
               attached as Exhibit D and any continuation, continuation in-part,
               or divisional applications thereof as well as foreign
               counterparts thereof and any U.S. Patent Application based on
               Invention Disclosure [*] attached as Exhibit E and any
               continuations continuation in-part, or divisional applications
               thereof as well as foreign counterparts thereof and any U.S.
               Patent Application based on Invention Disclosure [*] attached as
               Exhibit F and any continuation, continuation in-part, or
               divisional applications thereof as well as foreign counterparts
               thereof and any U.S. Patent Application based on Invention
               Disclosure [*] attached as Exhibit G and any continuation,
               continuation in-part, or divisional applications thereof as well
               as foreign counterparts thereof and any U.S. Patent Application
               based on Invention Disclosure [*] attached as Exhibit H and any
               continuation, continuation in-part, or divisional applications
               thereof as well as foreign counterparts thereof and any U.S.
               Patent Application based on Invention Disclosure [*] attached as
               Exhibit I and any continuation, continuation in-part, or
               divisional applications thereof as well as foreign counterparts
               thereof.

            2. LICENSED PATENT shall mean any U.S. Patents issuing from a
               Licensed Patent Application, and all reissues thereof as well as
               foreign counterparts thereof.

            3. LICENSED BIOLOGICAL MATERIAL shall mean that biological
               material including genes, proteins and peptide fragments,
               expression systems, cells and antibodies developed in the Cornell
               University Laboratories of Drs. Steven Beer, Alan Collmer and
               their colleagues and which is directly related to the inventions
               described in Licensed Patents or Licensed Patent Applications and
               which is listed and described in Exhibit J or added to Exhibit J
               at a later time by written mutual agreement of the parties.
               FOUNDATION and LICENSEE acknowledge that, to the best of their
               knowledge, said list of Exhibit J is complete. Licensed Products
               shall mean any product or use claimed in a Licensed Patent
               Application or Licensed Patent or any product or use which
               incorporates or otherwise utilizes Licensed Biological Material.

            5. LICENSE YEAR shall mean each twelve (12) month period
               beginning on the Effective Date of this Agreement first written
               above and thereafter on the anniversary date thereof.

[*] DESIGNATES  OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -4-
<PAGE>   21
            6. LICENSEE shall mean the above named company and any of its
               affiliates in which it owns or controls at least 50% of the
               voting stock..

            7. NET SALES PRICE shall mean [*]

FUTURE INVENTIONS

               The following new section is added to the May 1995 Exclusive
License Agreement:

               "Inventions" or "future inventions" shall refer to those
inventions and discoveries, made subsequent to the Effective Date of the May 95
Exclusive License Agreement, which are technologically related to Licensed
Patent Applications or Licensed Patents or which arise from research at Cornell
University funded by LICENSEE and which are:

               a) made solely by employees of Cornell University; or

               b) made jointly by employees of Cornell University.

               Future inventions made solely by employees of Cornell University
shall be the sole property of FOUNDATION.

               Future inventions made solely by employees of LICENSEE shall be
the sole property of LICENSEE and LICENSEE shall have no obligation to
FOUNDATION with regard to such property.

               Future inventions which are made jointly by employees of Cornell
University and LICENSEE shall be the joint property of FOUNDATION and LICENSEE.

               FOUNDATION and LICENSEE agree to notify each other, in a timely
manner, in writing, of any future inventions. FOUNDATION and LICENSEE shall
cooperate to determine inventorship of such inventions but final determination
of inventorship shall be made by that patent counsel responsible for prosecuting
License Applications or other patent counsel mutually agreed upon by the
parties.

               Disposition of the rights in future inventions shall be
determined based on inventorship, LICENSEE'S funding of the research at Cornell
which produced the

[*] DESIGNATES  OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -5-
<PAGE>   22
               invention and the relationship of potential patent claims of the
               invention to the claims of Licensed Patents or Licensed Patent
               Applications according to the following scheme:

               1.0 FUTURE INVENTION MADE SOLELY BY CORNELL INVENTORS USING
                   LICENSEE'S FUNDING SHALL BE DISPOSED OF AS FOLLOWS:

                   1.1 If the potential patent claims of such invention would be
                       dominated by claims of Licensed Patent Applications or
                       Licensed Patents, FOUNDATION shall, at the request of
                       LICENSEE, and subject to FOUNDATION'S obligations to
                       third parties, add such invention to the Licensed Patent
                       Applications of the May 95 Exclusive License Agreement.

                   1.2 If the potential patent claims of such invention would
                       not be dominated by claims of Licensed Patent
                       Applications or Licensed Patents, FOUNDATION shall,
                       subject to FOUNDATION'S obligations to third parties,
                       grant LICENSEE a first right of refusal on an exclusive
                       license under mutually agreeable terms.

               2.0 FUTURE INVENTION MADE SOLELY BY CORNELL INVENTORS BUT NOT
                   USING LICENSEE'S FUNDING OF CORNELL RESEARCH SHALL BE
                   DISPOSED OF AS FOLLOWS:

                   2.1 If the potential patent claims of such invention would be
                       dominated by claims of Licensed Patent Applications or
                       Licensed Patents, FOUNDATION shall, at the request of
                       LICENSEE, and subject to FOUNDATION'S obligations to
                       third parties, grant LICENSEE a first right of refusal on
                       a license under mutually agreeable terms.

                   2.2 If the potential patent claims of such invention would
                       not be dominated by claims of Licensed Patent
                       Applications or Licensed Patents, LICENSEE shall have no
                       inherent rights therein and disposition of such invention
                       would be solely at FOUNDATION'S discretion.

               3.0 FUTURE INVENTIONS THAT ARE JOINTLY MADE BY EMPLOYEES OF
                   CORNELL AND LICENSEE IN WHICH THE CORNELL PORTION WAS MADE
                   USING LICENSEE'S FUNDING OF CORNELL RESEARCH SHALL BE
                   DISPOSED OF AS FOLLOWS:

                   3.1 If the potential patent claims of such invention would be
                       dominated by claims of Licensed Patent Applications or
                       Licensed Patents, FOUNDATION shall, at the request of
                       LICENSEE, and subject to

               [*] DESIGNATES  OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT
               TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE
               COMMISSION.

                                      -6-
<PAGE>   23
                       FOUNDATION'S obligations to third parties, add such
                       invention to the Licensed Patent Applications of the May
                       95 Exclusive License Agreement.

                   3.2 If the potential patent claims of such invention would
                       not be dominated by claims of Licensed Patent
                       Applications or Licensed Patents, FOUNDATION shall,
                       subject to FOUNDATION'S obligations to third parties,
                       grant LICENSEE a first right of refusal on an exclusive
                       license under mutually agreeable terms.

               4.0 FUTURE INVENTIONS THAT ARE JOINTLY MADE BY EMPLOYEES OF
                   CORNELL AND LICENSEE IN WHICH THE CORNELL PORTION WAS NOT
                   MADE USING LICENSEE'S FUNDING OF CORNELL RESEARCH SHALL BE
                   DISPOSED OF AS FOLLOWS:

                   4.1 If the potential patent claims of such invention would be
                       dominated by claims of Licensed Patent Applications or
                       Licensed Patents, FOUNDATION shall, at the request of
                       LICENSEE, and subject to FOUNDATION'S obligations to
                       third parties, grant LICENSEE a first right of refusal to
                       a license under mutually agreeable terms.

                   4.2 If the potential patent claims of such invention would
                       not be dominated by claims of Licensed Patent
                       Applications or Licensed Patents, FOUNDATION shall,
                       subject to FOUNDATION'S obligations to third parties,
                       grant LICENSEE a first right of refusal on a license
                       under mutually agreeable terms.

               PAYMENTS MADE IN CONSIDERATION OF THE EXECUTION OF THIS LICENSE
                   AGREEMENT

                   On page 9, section IV of the May 95 Exclusive License
               Agreement, subparagraph 6) shall be followed by an additional
               subparagraph 7) as follows:

                   7)  In the event LICENSEE develops or acquires technology
                       which could avoid the equity vesting schedule described
                       above, such equity shallthen fully vest in FOUNDATION
                       without regard to the milestone schedule described
                       hereinabove.

[*] DESIGNATES  OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -7-
<PAGE>   24

                                    EXHIBITS

               The Exhibits of the Exclusive License Agreement have been
          expanded and renumbered as follows:

               Exhibit A:        [*]

               Exhibit B         [*]

               Exhibit C         [*]

               Exhibit D         [*]

               Exhibit E         [*]

               Exhibit F         [*]

               Exhibit G         [*]

               Exhibit H         [*]

               Exhibit I         [*]

               Exhibit J         Licensed Biological Material

               IN WITNESS WHEREOF, the parties have caused this instrument to be
          executed in duplicate as of the day and year first above written.

          ATTEST:                     CORNELL RESEARCH FOUNDATION, INC.

                                      By    /s/ Richard S. Cahoon
-------------------------               ----------------------------------------
                                            Richard S. Cahoon
                                      Title Vice President
                                           -------------------------------------
                                      Date
                                          --------------------------------------

ATTEST:                               EDEN BIOSCIENCE CORPORATION

                                      By    /s/ Jerry L. Butler
-------------------------               ----------------------------------------
                                      Name  Jerry L. Butler
                                          --------------------------------------
                                      Title President
                                           -------------------------------------
                                      Date
                                          --------------------------------------

[*] DESIGNATES  OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                       -8-
<PAGE>   25
                                AMENDMENT TO THE
                          EXCLUSIVE LICENSE AGREEMENT

            between Eden Bioscience and Cornell Research Foundation
                 which was effective the first day of May 1995

     THIS AMENDMENT (effective as of the first day of October 1998) to that
Exclusive License Agreement referenced above (hereinafter the "Agreement"), by
and between CORNELL RESEARCH FOUNDATION, INC., having offices at Cornell
Business & Technology Park, 20 Thornwood Drive, Suite 105, Ithaca, New York
14850, hereinafter referred to as "FOUNDATION" and EDEN BIOSCIENCE CORPORATION,
having offices at 11816 N. Creek Parkway, Bothell, Washington 98011-8205,
hereinafter referred to as "LICENSEE."

                        W I T N E S S E T H   T H A T :

     WHEREAS, FOUNDATION and LICENSEE have previously entered into the
Agreement, effective 1 May 1995, to which this Amendment shall become a part
thereof, in which FOUNDATION granted certain exclusive rights in several
patentable technologies developed at Cornell University to LICENSEE; and

     WHEREAS, FOUNDATION and LICENSEE mutually agree that the Agreement should
be modified such that the Licensed Patent Applications and Licensed Patents of
the Agreement shall be expanded to include the additional Licensed Patent
Applications listed in Exhibit 1 and any patent applications or patents which
derive therefrom including any divisional, continuation, continuations-in-part,
reissues and foreign equivalents thereof, which list may be modified from time
to time; and

     WHEREAS, FOUNDATION and LICENSEE also agree that the Agreement should be
further modified as defined hereinbelow; and

     NOW, THEREFORE, in consideration of the covenants and obligations
hereinafter set forth, the parties hereto hereby agree as follows:

                              PRIMACY OF AMENDMENT

     The parties agree that the terms and conditions of this Amendment shall
take precedence over those contained in the Agreement.

<PAGE>   26
                                  DEFINITIONS

     The Definitions section (1) of the Agreement shall be entirely replaced
with the following:

     1.   LICENSED PATENT APPLICATION shall mean those Licensed Patent
          Applications of the Agreement as well as those U.S. Patent
          Applications listed in Exhibit 1 and any regular, continuation,
          continuation-in-part, or divisional applications thereof as well as
          foreign counterparts thereof as well as any future modifications to
          Exhibit 1 by mutual written agreement of the parties.

     2.   LICENSED PATENT shall mean any U.S. Patents issuing from a Licensed
          Patent Application, and all reissues thereof as well as foreign
          counterparts thereof.

     3.   LICENSED BIOLOGICAL MATERIAL shall mean that biological material
          including genes, proteins and peptide fragments, expression systems,
          cells and antibodies developed in the Cornell University Laboratories
          of Drs. Steven Beer, Alan Collmer and their colleagues and which is
          directly related to the inventions described in Licensed Patents or
          Licensed Patent Applications and which is listed and described in
          Exhibit 2 or added to Exhibit 2 at a later time by written mutual
          agreement of the parties. FOUNDATION and LICENSEE acknowledge that, to
          the best of their knowledge, said list of Exhibit 2 is complete as of
          the Effective Date.

     4.   LICENSED PRODUCTS shall mean any product or use claimed in a Licensed
          Patent Application or Licensed Patent or any product or use which
          incorporates or otherwise utilizes Licensed Biological Material.

     5.   LICENSE YEAR shall mean each twelve (12) month period beginning on
          the Effective Date of this Agreement first written above and
          thereafter on the anniversary date thereof.

     6.   LICENSEE shall mean the above named company and any of its affiliates
          in which it owns or controls at least 50% of the voting stock.

     7.   NET SALES PRICE shall mean [*]

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -2-
<PAGE>   27

     8.   [ * ] shall mean [ * ] and any regular continuation,
continuation-in-part, or divisional applications thereof as well as foreign
counterparts thereof. Title to such [ * ] is held by FOUNDATION.

                                     GRANT

     The following paragraph shall be appended to the Grant, Section II on page
6 of the Agreement:

     FOUNDATION also hereby grants to LICENSEE the non-exclusive, royalty-free
right to [ * ]

                               FUTURE INVENTIONS

     The following new section is added to the Agreement:

     "Inventions" or "future inventions" shall refer to those inventions and
discoveries, made subsequent to the Effective Date of the Agreement, which are
related to the gene cluster map of Exhibit 3 or to Licensed Patent Applications
or Licensed Patents or which arise from research at Cornell University funded
by LICENSEE and which are:

     a)   made solely by employees of Cornell University; or

     b)   made jointly by employees of Cornell University.

     Future inventions made solely by employees of Cornell University shall be
the sole property of FOUNDATION.

     Future inventions made solely by employees of LICENSEE shall be the sole
property of LICENSEE and LICENSEE shall have no obligation to FOUNDATION with
regard to such property.

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -3-
<PAGE>   28
     Future inventions which are made jointly by employees of Cornell
University and LICENSEE shall be the joint property of FOUNDATION and LICENSEE.

     If either FOUNDATION or LICENSEE conclude that an invention may fall
within the terms of this Agreement, FOUNDATION and LICENSEE agree to notify
each other, in a timely manner, in writing, of any such future inventions.
FOUNDATION and LICENSEE shall cooperate to determine inventorship of such
inventions but final determination of inventorship shall be made by that patent
counsel responsible for prosecuting Licensed Patent Applications or other
patent counsel mutually agreed upon by the parties. FOUNDATION agrees to
maintain as confidential, all information of LICENSEE which is provided to
FOUNDATION for said purpose of determining inventorship and which is clearly
marked as confidential.

     Disposition of the rights in future inventions shall be determined based
on inventorship, LICENSEE's funding of the research at Cornell which produced
the invention and the relationship of potential patent claims of the invention
to the claims of Licensed Patents or Licensed Patent Applications according to
the following scheme.

1.0  Future invention made solely by Cornell inventors using LICENSEE's funding
     shall be disposed of as follows:

     1.1  If the potential patent claims of such invention would be dominated by
          claims of Licensed Patent Applications or Licensed Patents, FOUNDATION
          shall, at the request of LICENSEE, and subject to FOUNDATION's
          obligations to third parties, add such invention to the Licensed
          Patent Applications of the May 1995 Exclusive License Agreement.

     1.2  If the potential patent claims of such invention would not be
          dominated by claims of Licensed Patent Applications or Licensed
          Patents, FOUNDATION shall, subject to FOUNDATION's obligations to
          third parties, grant LICENSEE a first right of refusal on an exclusive
          license under mutually agreeable terms.

2.0  Future invention made solely by Cornell inventors but not using LICENSEE'S
     funding of Cornell research shall be disposed of as follows:

     2.1  If the potential patent claims of such invention would be dominated by
          claims of Licensed Patent Applications or Licensed Patents, FOUNDATION
          shall, at the request of LICENSEE, and subject to

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -4-

<PAGE>   29
          FOUNDATION's obligations to third parties, grant LICENSEE a first
          right of refusal on a license under mutually agreeable terms.

     2.2  If the potential patent claims of such invention would not be
          dominated by claims of Licensed Patent Applications or Licensed
          Patents, LICENSEE shall have no inherent rights therein and
          disposition of such invention would be solely at FOUNDATION'S
          discretion.

3.0  Future inventions that are jointly made by employees of Cornell and
     LICENSEE in which the Cornell portion was made using LICENSEE's funding of
     Cornell research shall be disposed of as follows:

     3.1  If the potential patent claims of such invention would be dominated by
          claims of Licensed Patent Applications or Licensed Patents, FOUNDATION
          shall, at the request of LICENSEE, and subject to FOUNDATION's
          obligations to third parties, add such invention to the Licensed
          Patent Applications of the May 95 Exclusive License Agreement.

     3.2  If the potential patent claims of such invention would not be
          dominated by claims of Licensed Patent Applications or Licensed
          Patents, FOUNDATION shall, SUBJECT TO FOUNDATION'S obligations to
          third parties, grant LICENSEE a first right of refusal on an exclusive
          license under mutually agreeable terms.

4.0  Future inventions that are jointly made by employees of Cornell and
     LICENSEE in which the Cornell portion was not made using LICENSEE's
     funding of Cornell research shall be disposed of as follows:

     4.1  If the potential patent claims of such invention would be dominated by
          claims of Licensed Patent Applications or Licensed Patents, FOUNDATION
          shall, at the request of LICENSEE, and subject to FOUNDATION's
          obligations to third parties, grant LICENSEE a first right of refusal
          to a license under mutually agreeable terms.

     4.2  If the potential patent claims of such invention would not be
          dominated by claims of Licensed Patent Applications or Licensed
          Patents, FOUNDATION shall, subject to FOUNDATION's obligations to
          third parties, grant LICENSEE a first right of refusal on a license
          under mutually agreeable terms.

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -5-

<PAGE>   30
                     PAYMENTS MADE IN CONSIDERATION OF THE
                      EXECUTION OF THIS LICENSE AGREEMENT

     On page 7, section IV of the Agreement, the second paragraph shall be
replaced entirely with the following paragraph:

          It is understood by the parties that FOUNDATION shall take no
          management role in LICENSEE.

     Notwithstanding the equity vesting provisions and schedule defined in
Section IV of the Agreement, the parties hereby agree that the full amount of
equity in LICENSEE owed to FOUNDATION, shall fully and immediately vest in
FOUNDATION upon execution of this Amendment.

                   ROYALTIES AND MINIMUM ROYALTIES TO BE PAID
                          DURING THE LICENSE AGREEMENT

     The language of Section VIII of the Agreement notwithstanding, the parties
agree to modify the royalty terms as follows:

     LICENSEE shall pay to the FOUNDATION a royalty of [ * ] of the Net Sales
     Price of Licensed Products. However, LICENSEE may request an adjustment in
     said future royalty and, if LICENSEE can justify the need for such
     adjustment, FOUNDATION shall consider such adjustment, although it shall
     have no obligation to do so. Further, the royalty on any transgenic
     Licensed Product shall be determined on a case-by-case basis BY FOUNDATION
     and LICENSEE such that LICENSEE's ability to profitably make, use and sell
     such transgenic Licensed Product shall not be unduly impaired and, in any
     event, such royalty on said transgenic Licensed Product shall not exceed
     [ * ]. The parties acknowledge the value of LICENSEE's continued support of
     research conducted at Cornell University and, in consideration of such
     support, FOUNDATION agrees to credit any such monies provided to Cornell
     University beyond the [ * ] provided to Cornell from 1 May through 30
     April 1999 against any future royalties owed by LICENSEE as described in
     the RESEARCH SUPPORT section, hereinbelow.

     The parties agree that any royalty owned to FOUNDATION by LICENSEE on the
sale of any Licensed Product which is based entirely on a Licensed Patent
Application or Licensed Patent which is jointly owned by FOUNDATION and
LICENSEE, shall be reduced by [ * ]. If such a Licensed Product is based
partially on a jointly owned Licensed Patent Application or Licensed Patent as
well as on a

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -6-
<PAGE>   31
Licensed Patent Application or Licensed Patent which is solely owned by
FOUNDATION, such royalty owed shall be reduced by [*].

                               DUTY OF DILIGENCE

     The language of Section XII of the Agreement notwithstanding, the parties
agree to modify the terms and conditions of LICENSEE's duty of diligence as
follows:

     LICENSEE's obligation to pursue introduction of transgenic Licensed
     Products has been satisfied by providing unrestricted research support to
     Cornell University of [*] for the period May 1998 through April 1999.

                                RESEARCH SUPPORT

     LICENSEE agrees to provide one year of research support to Cornell
University of an amount not less than [*] beginning in May of 1998. Such money
shall not be creditable against future royalties. However, any such research
support beyond the [*] paid from 1 May 1998 through 30 April 1999 may be
credited against future royalty owed by LICENSEE as described hereinabove.

     IN WITNESS WHEREOF, the parties have caused this instrument to be executed
in duplicate as of the day and year first above written.

ATTEST:                       CORNELL RESEARCH FOUNDATION, INC.

                              By     /s/ Richard S. Cahoon
                                --------------------------------------
                                     Richard S. Cahoon
                              Title: Vice President
-------------------                 ----------------------------------
                              Date:
                                   -----------------------------------

ATTEST:                       EDEN BIOSCIENCE CORPORATION

                              By     /s/ Jerry L. Butler
                                --------------------------------------
                                     Jerry L. Butler
                              Title: President
-------------------                 ----------------------------------
                              Date:
                                   -----------------------------------

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -7-
<PAGE>   32
                                   EXHIBIT 1

     The following U.S. Patent Applications and any regular, divisional,
continuation, continuation-in-part applications and foreign equivalents are
hereby Licensed Patent Applications as defined in the Agreement.

[ * ].

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -8-

<PAGE>   33

                                   EXHIBIT 2

[*].

[*] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -9-

<PAGE>   34

                                   AMENDMENT 3
                                       TO

                               CORNELL UNIVERSITY
                          OFFICE OF SPONSORED PROGRAMS

                               AGREEMENT NO. 28574

SCHEDULE

        The purpose of this Amendment is to extend the Subcontract period for an
additional period of performance beginning May 1, 1996 and ending April 30,
1999; and, to increase the estimated cost by [ * ] from [ * ] to [ * ]. This
Amendment consists of the Schedule which is made a part of this Amendment for
all purposes

CHANGES

Replace Article 4, with:

        4.     Period of Performance. The Period of performance of this
               Agreement will be May 1, 1996 through April 30, 1999.

Replace Article 6, with:

        6.     Cost and Payments:

               6.1    It is agreed to and understood by the parties that the
                      University shall be reimbursed for all costs incurred in
                      connection with the Project up to the amount of [ * ] (the
                      "Project Cost"). It is estimated that the amount
                      designated as the Project Cost is sufficient to support
                      Project expenses.

               6.2    The Sponsor shall not be liable for any payment in excess
                      of the Project Cost unless this Agreement is modified in
                      writing. Within ninety (90) days after the termination of
                      this Agreement the University shall submit a final
                      financial report setting forth costs incurred. The report
                      shall be accompanied by a check in the amount, if any, of
                      the excess of funds advanced over costs incurred.

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                       -1-
<PAGE>   35

               6.3    All checks shall be made payable to Cornell University and
                      sent to the address specified in Article 19, Notices.
                      Payment shall be made by the Sponsor according to the
                      following schedule.

                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]

Except as modified above, all terms and conditions of the Subcontract shall
remain unchanged and in full force and effect.

IN WITNESS WHEREOF, the parties have cause these presents to be executed in
duplicate on the dates indicated below.

UNIVERSITY                                   EDEN BIOSCIENCE CORP.

/s/ Jeff Bugliari                            /s/ Jerry L. Butler
-----------------------------------          -----------------------------------
Grant and Contract Officer                   Jerry L. Butler President and CEO

               7/22/98                                      8/7/98
-----------------------------------          -----------------------------------
Date                                         Date

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -2-
<PAGE>   36

                                 AMENDMENT NO. 4
                                       TO

                               CORNELL UNIVERSITY
                          OFFICE OF SPONSORED PROGRAMS

                               AGREEMENT NO. 28574

SCHEDULE

        The purpose of this Amendment is to extend the Subcontract period for an
additional period of performance beginning May 1, 1996 and ending April 30,
2000; and to increase the estimated cost by [ * ] increasing the total
Subcontract to [ * ].

CHANGES

Replace Article 4 with:

        4.     Period of Performance. The period of performance of this
               agreement will be May 1, 1996 through April 30, 2000.

Replace Article 6 with:

        6.     Cost and Payments:

               6.1    It is agreed to and understood by the parties that the
                      University shall be reimbursed for all costs incurred in
                      connection with the Project up to the amount of [ * ] (the
                      "Project Cost"). It is estimated that the amount
                      designated as the Project Cost is sufficient to support
                      Project expenses.

               6.2    The Sponsor shall not be liable for any payment in excess
                      of the Project Cost unless this Agreement is modified in
                      writing. Within 90 days after the termination of this
                      Agreement, the University shall submit a final financial
                      report setting forth costs incurred. The report shall be
                      accompanied by a check in the amount, if any, of the
                      excess of funds advanced over costs incurred.

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -1-
<PAGE>   37

               6.3    All checks shall be made payable to Cornell University and
                      sent to the address specified in Article 19, Notices.
                      Payment shall be made by the Sponsor according to the
                      following schedule.

                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]
                     [ * ]                                   [ * ]

Except as modified above, all terms and conditions of the Subcontract shall
remain unchanged and in full force and effect.

IN WITNESS WHEREOF, the parties have caused these presents to be executed in
duplicate on the dates indicated below

UNIVERSITY                                   EDEN BIOSCIENCE CORP.

/s/ John T. Desch                            /s/ Jerry L. Butler
-----------------------------------          -----------------------------------
John T. Desch                                Jerry L. Butler
Sr. Grant and Contract Officer               President

               4/22/99                                      4/22/99
-----------------------------------          -----------------------------------
Date                                         Date

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -2-
<PAGE>   38

                                 AMENDMENT NO. 5
                                       TO

                               CORNELL UNIVERSITY
                          OFFICE OF SPONSORED PROGRAMS

                               AGREEMENT NO. 28574

SCHEDULE

        The purpose of this Amendment is to extend the Subcontract period for an
additional period of performance beginning May 1, 1996 and ending April 30,
2001; and to increase the estimated cost by [ * ], increasing the total
Subcontract to [ * ].

CHANGES

Replace Article 4 with:

        4      Period of Performance

               The period of performance of this agreement will be May 1, 1996
               through April 30, 2001.

Replace Article 6 with:

        6.     Cost and Payments

               6.1    It is agreed to and understood by the parties that the
                      University shall be reimbursed for all costs incurred in
                      connection with the Project up to the amount of [ * ] (the
                      "Project Cost"). It is estimated that the amount
                      designated as the Project Cost is sufficient to support
                      Project expenses.

               6.2    The Sponsor shall not be liable for any payment in excess
                      of the Project Cost unless this Agreement is modified in
                      writing. Within 90 days after the termination of this
                      Agreement, the University shall submit a final financial
                      report setting forth costs incurred. The report shall be
                      accompanied by a check in the amount, if any, of the
                      excess of funds advanced over costs incurred.

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

<PAGE>   39

               6.3    All checks shall be made payable to Cornell University and
                      sent to the address specified in Article 19, Notices.
                      Payment shall be made by the Sponsor according to the
                      following schedule.

                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]
                      [ * ]                                  [ * ]

        Except as modified above, all terms and conditions of the Subcontract
shall remain unchanged and in full force and effect.

        IN WITNESS WHEREOF, the parties have caused these presents to be
executed in duplicate on the dates indicated below.

CORNELL UNIVERSITY                           EDEN BIOSCIENCE CORP.

/s/ John T. Desch                            /s/ Jerry L. Butler
-------------------------------------        -----------------------------------
Name:  John T. Desch                         Name:  Jerry L. Butler
Title: Sr. Grant and Contract Officer        Title: President and CEO
       Office of Sponsored Programs

               4/17/2000                                    4/10/2000
-------------------------------------        -----------------------------------
Date                                         Date

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

                                      -2-
<PAGE>   40
                 [CORNELL RESEARCH FOUNDATION, INC. LETTERHEAD]

                                  July 2, 2000

Mr. Jerry Butler
President and CEO
Eden Bioscience Corporation
11816 North Creek Parkway
Bothell, WA   98011-8205

        RE:    OUR REF: [ * ] - Beer et al.
               LICENSE AMENDMENT
               TO THE EXCLUSIVE LICENSE AGREEMENT BY AND BETWEEN EDEN BIOSCIENCE
               CORPORATION AND CORNELL RESEARCH FOUNDATION EFFECTIVE MAY 1, 1995
               AND AMENDED OCTOBER 1, 1998 (HEREINAFTER "LICENSE")

        Effective the first day of June, 2000, the undersigned parties agree
that this Amendment hereby modifies the License as follows:

        "The provisional patent application [ * ] entitled [ * ] invented by
David Bauer and Steven Beer and assigned to Cornell Research Foundation was
filed in the United States Patent and Trademark Office on [ * ] and said
application is hereby added to the list of "Licensed Applications."

        Notwithstanding the grant of rights conveyed to Eden Bioscience
Corporation in the License, Cornell Research Foundation retains the right to
license third parties the right to make, use and sell products covered by said
provisional patent application.

        IN WITNESS THEREOF, the parties have caused this instrument to be
executed in duplicate as of the day and year of the last signature below.

Cornell Research Foundation, Inc.            Eden Bioscience Corporation

      /s/ Richard S. Cahoon                             /s/ J. Butler
-----------------------------------          -----------------------------------
By    Richard S. Cahoon                      By        J. Butler
  ---------------------------------            ---------------------------------
Title   Vice President                       Title        President
     ------------------------------               ------------------------------
Date     June 2, 2000                        Date        June 23, 2000
     ------------------------------               ------------------------------

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.
<PAGE>   41
                 [CORNELL RESEARCH FOUNDATION, INC. LETTERHEAD]

                                  July 2, 2000

Mr. Jerry Butler
President and CEO
Eden Bioscience Corporation
11816 North Creek Parkway
Bothell, WA   98011-8205

        RE:    OUR REF: [ * ] - Beer et al.
               LICENSE AMENDMENT
               TO THE EXCLUSIVE LICENSE AGREEMENT BY AND BETWEEN EDEN BIOSCIENCE
               CORPORATION AND CORNELL RESEARCH FOUNDATION EFFECTIVE MAY 1, 1995
               AND AMENDED OCTOBER 1, 1998 (HEREINAFTER "LICENSE")

        Effective the first day of June, 2000, the undersigned parties agree
that this Amendment hereby modifies the License as follows:

        "The provisional patent application [ * ] entitled [ * ] invented by
David Bauer and Steven Beer and assigned to Cornell Research Foundation was
filed in the United States Patent and Trademark Office on [ * ] and said
application is hereby added to the list of "Licensed Applications."

        Notwithstanding the grant of rights conveyed to Eden Bioscience
Corporation in the License, Cornell Research Foundation retains the right to
license third parties the right to make, use and sell products covered by said
provisional patent application.

        IN WITNESS THEREOF, the parties have caused this instrument to be
executed in duplicate as of the day and year of the last signature below.

Cornell Research Foundation, Inc.            Eden Bioscience Corporation

      /s/ Richard S. Cahoon                             /s/ J. Butler
-----------------------------------          -----------------------------------
By    Richard S. Cahoon                      By        J. Butler
  ---------------------------------            ---------------------------------
Title   Vice President                       Title        President
     ------------------------------               ------------------------------
Date     June 2, 2000                        Date        June 23, 2000
     ------------------------------               ------------------------------

[ * ] DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE COMMISSION.

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