Document:

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                                                                    EXHIBIT 10.3

                        FORM OF PHANTOM SHARE AGREEMENT

     PHANTOM SHARE AGREEMENT by and among Monsanto Company, a Delaware
corporation (the "Company"), Pharmacia Corporation, a Delaware corporation
formerly known as Monsanto Company ("Pharmacia"), which is the sole shareholder
of the Company, and ___________ (the "Executive"), dated as of the ___ day of
___________, 2000.

     WHEREAS, the Executive is an executive employee of Pharmacia; and

     WHEREAS, Pharmacia and the Executive are parties to an Employment Agreement
dated as of April 25, 1997 (the "Current Employment Agreement"); and

     WHEREAS, in connection with the separation of the agricultural and
pharmaceutical businesses of Pharmacia and its subsidiaries, the Executive has
agreed to become an employee of the Company; and

     WHEREAS, in that connection, the Company, Pharmacia and the Executive wish
to replace the Current Employment Agreement with the new arrangement provided
for in this Phantom Share Agreement;

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1. Effect on Current Employment Agreement. (a) Effective as of the date of
        --------------------------------------
the initial public offering of the Shares (the "Effective Date"), the Current
Employment Agreement shall be null and void and of no further force or effect.
If the initial public offering of the Shares does not occur on or before March
31, 2001, or if the Company publicly announces before that date that it is no
longer contemplating making an initial public offering of the Shares, then this
Agreement shall be null and void and of no further force or effect, and the
Current Employment Agreement shall remain in effect.

     (b) [VERFAILLIE: EFFECTIVE NO LATER THAN THE EFFECTIVE DATE, THE EXECUTIVE
SHALL BECOME THE CHIEF EXECUTIVE OFFICER OF THE COMPANY AND SHALL HAVE THE
AUTHORITY, DUTIES AND RESPONSIBILITIES SET FORTH IN EXHIBIT A TO THIS AGREEMENT
AND THE BY-LAWS OF THE COMPANY.] [OTHERS: EFFECTIVE NO LATER THAN THE EFFECTIVE
DATE, THE EXECUTIVE SHALL BECOME AN EMPLOYEE OF THE COMPANY.]

     2. Grant of Phantom Shares. Effective as of the Effective Date, the Company
        -----------------------
shall establish a bookkeeping account for the Executive (the "Account"), to
which it shall from time to time credit hypothetical shares (the "Phantom
Shares") of the common stock of the Company (the "Shares"). The initial number
of Phantom Shares (which may include a fraction) credited to the Account shall
equal the number of shares and fractions thereof determined by dividing (x)
$_____ (the "Initial Value") by (y) the initial public offering price of the
Shares.

     3. Adjustments to Account. Whenever a dividend or distribution is declared
        ----------------------
with respect to the common stock of the Company with a record date after the
Effec-

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tive Date and at a time when Phantom Shares remain in the Account, an
additional number of Phantom Shares shall be credited to the Account equal to
the number of shares and having a Share Value as of the payment date for such
dividend or distribution equal to the fair market value (as determined by the
Committee) of such dividend. In the event of any change in corporate
capitalization such as a stock split, any corporate transaction such as a
merger, consolidation, separation, spin-off, or other distribution of stock or
property of the Company, any reorganization (whether or not such reorganization
comes within the definition of reorganization in Section 368 of the Code), or
any partial or complete liquidation of the Company, then notwithstanding any
other provision of this Agreement, the Committee shall make such substitution or
adjustments in the aggregate number and kind of shares represented by the
Phantom Shares, if any, as it may determine to be appropriate or necessary to
preserve the value thereof.

     4.  Vesting, Forfeiture and Payment of Account. (a) Performance Goal. As
         ------------------------------------------
soon as reasonably practicable after December 31, 2001, the Committee shall
determine and certify whether or not the Performance Goal has been met, and if
it has not been met, then the Executive shall forfeit all rights to the Account
unless it has previously vested and been paid as provided below in this
Section 4.

     (b) Vesting On October 1, 2002. If the Executive remains an employee of the
         --------------------------
Company or any member of the Affiliated Group that includes the Company as of
October 1, 2002, and the Committee has certified that the Performance Goal has
been met, then the balance in the Account shall vest as of October 1, 2002.

     (c) Termination of Employment.
         -------------------------

         (i) The balance in the Account shall vest as of the date of the
termination of the Executive's employment with the Company and the other members
of the Affiliated Group that includes the Company, if such termination is the
result of the Executive's death, Disability, Termination without Cause or
Termination for Good Reason, and

         (A) such termination occurs before December 31, 2001; or

         (B) such termination occurs on or after December 31, 2001 but before
October 1, 2002, and the Committee certifies that the Performance Goal has been
met.

         (ii) The balance in the Account shall not vest if the termination of
the Executive's employment with the Company and the other members of the
Affiliated Group that includes the Company,

         (A) occurs before December 31, 2001 for any other reason than death,
Disability, Termination without Cause, or Termination for Good Reason; or

         (B) occurs on or after December 31, 2001 but before October 1, 2002,
and the Committee fails to certify that the Performance Goal has been met,

                                      -2-

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and then in either case the Executive shall forfeit all rights to the Account
unless it has previously vested and been paid as provided below in this
Section 4.

     (d) Change of Control. If there occurs a Monsanto Change of Control before
         -----------------
December 31, 2001 and the Executive remains an employee of the Company or any
member of the Affiliated Group that includes the Company as of the date of the
Monsanto Change of Control, the balance in the Account shall vest on the date of
the Monsanto Change of Control. If there occurs a Pharmacia Change of Control
before December 31, 2001 followed by a Second Trigger, and the Executive remains
an employee of the Company or any member of the Affiliated Group that includes
the Company as of the date of the Second Trigger, the balance in the Account
shall vest on the date of the Second Trigger.

     (e) Payment of Account. Whenever the balance in the Account vests as
         ------------------
provided above, the Company shall pay to the Executive, in a single lump sum
cash payment, an amount equal to the number of Phantom Shares credited to the
Account times the Share Value, each determined as of the date of vesting;
PROVIDED, that if the Account has vested pursuant to Section 4(c), the amount of
such payment shall in no event be less than the Initial Value. Such payment
shall be made as soon as reasonably practicable, but in any event within 30
days, after the last to occur of (i) the date on which such vesting occurs, (ii)
the date on which the Committee certifies that the Performance Goal has been
met, if such certification is a condition to such vesting, and (iii) the date on
which the Company obtains the shareholder approval required by Section 5, unless
such vesting occurs as a result of a Change of Control before the First Annual
Meeting.

     5. Shareholder Approval. Notwithstanding any other provision of this
        --------------------
Agreement, the Executive shall have no right to any payments pursuant to Section
4 of this Agreement or otherwise with respect to the Phantom Shares and the
Account, unless and until the shareholders of the Company have approved the
material terms and conditions hereof in a manner satisfying the requirements of
Section 162(m)(4)(C) for performance-based compensation; PROVIDED, that such
shareholder approval shall not be required if a Change of Control occurs before
the First Annual Meeting. The Company shall seek such approval at the First
Annual Meeting. By its signature below, Pharmacia hereby approves such terms and
conditions and agrees to vote its shares of the Company for such approval at the
First Annual Meeting.

     6. Definitions. For purposes of this Agreement, the following terms shall
        -----------
have the meanings set forth below:

     Account:  defined in Section 2.
     -------

     Affiliated Group: a group of corporations (domestic and foreign),
     ----------------
     partnership(s), joint venture(s), and other entities that would constitute
     an affiliated group of corporations within the meaning of Section 1504 of
     the Code, if each such entity were a domestic corporation, and for purposes
     of this agreement, substituting 30% ownership in Section 1504(a)(2)(A) for
     80% ownership.

     Agreement:  this Phantom Share Agreement.
     ---------

                                      -3-

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      Board:  the Board of Directors of the Company.
      -----

      Change of Control:  a Monsanto Change of Control or a Pharmacia Change
      -----------------
      of Control.

      Code:  the Internal Revenue Code of 1986, as amended.
      ----

      Company:  defined in the first paragraph of this Agreement.
      -------

      Committee: the Company's Board People Committee or such other committee as
      may be designated by the Board; PROVIDED, that the Committee must consist
      solely of two or more members of the Board, each of whom qualifies as an
      "outside director" for purposes of Section 162(m) of the Code.

      Current Employment Agreement:  defined in the second "WHEREAS" clause of
      ----------------------------
      this Agreement.

      Disability: Before a Change of Control, "Disability" shall mean the
      Executive's long-term disability for purposes of any reasonable occupation
      as determined under the Company's disability plan that is applicable to
      the Executive. After a Change of Control, "Disability" shall be as defined
      in the Executive's Change-of-Control Employment Security Agreement.

      Effective Date:  defined in Section 1.
      --------------

      Exchange Act:  The Securities Exchange Act of 1934, as amended.
      ------------

      Executive:  defined in the first paragraph of this Agreement.
      ---------

      First Annual Meeting:  the first annual meeting of the Company's
      --------------------
      shareholders that occurs after the Effective Date.

      Initial Value:  defined in Section 2.
      -------------

      Monsanto Change of Control:  the happening of any of the events described
      --------------------------
      in subsections (a) through (d) below, if immediately following such event,
      Pharmacia does not beneficially own a majority of the then-outstanding
      Shares:

         (a) the acquisition by any Person of beneficial ownership (within the
      meaning of Rule 13d-3 promulgated under the Exchange Act) of either (i)
      the Requisite Common Percentage of the then-outstanding Shares (the
      "Outstanding Company Common Stock") or (ii) the Requisite Voting
      Percentage of the combined voting power of the then-outstanding voting
      securities of the Company entitled to vote generally in the election of
      directors (the "Outstanding Company Voting Securities"); provided, that
      for purposes of this subsection (a), the following acquisitions shall not
      constitute a Change of Control: (A) any acquisition directly from the
      Company; (B) any acquisition by the Company or a Subsidiary of the
      Company; (C) any acquisition

                                      -4-

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by any employee benefit plan (or related trust) sponsored or maintained by the
Company, or a Subsidiary of the Company; or (D) any acquisition by any
corporation pursuant to a transaction that complies with clauses (i), (ii) and
(iii) of subsection (c) of this definition;

     (b) individuals who, as of the date of the initial public offering of the
Shares, constitute the Board (the "Incumbent Board"), cease for any reason to
constitute at least a majority of the Board; provided, that any individual
becoming a director subsequent to the date hereof whose election, or nomination
for election by the Company's stockholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board;

     (c) consummation by the Company of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company or the acquisition of assets or stock of another
corporation (a "Business Combination"), in each case, unless, following such
Business Combination, (i) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more than
60% of, respectively, the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including without limitation a
corporation that as a result of such transaction owns the Company or all or
substantially all of the Company's assets either directly or through one or more
subsidiaries) in substantially the same proportions as their owner-ship,
immediately prior to such Business Combination of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be, (ii) no
Person (excluding the Company, a Subsidiary of the Company, any corporation
resulting from a Business Combination or any employee benefit plan (or related
trust) thereof) beneficially owns, directly or indirectly, the Requisite Common
Percentage of the then-outstanding shares of common stock of the corporation
resulting from such Business Combination or the Requisite Voting Percentage of
the combined voting power of the then-outstanding voting securities entitled to
vote generally in the election of directors of such corporation, except to the
extent that such ownership existed prior to the Business Combination and (iii)
at least a majority of the members of the board of directors of the corporation
resulting from such Business Combination were members of the Incumbent Board

                                      -5-

<PAGE>

at the time of the execution of the initial agreement, or of the action of the
Board, providing for such Business Combination;

            (d) approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.

Monsanto Leadership Team: those individuals who are, immediately before a
------------------------
Pharmacia Change of Control, members of the Monsanto Leadership Team or any
successor group thereto.

Performance Goal: the Performance Goal is for the Company's net income, as
----------------
reported in the Company's audited U.S. financial statements, but excluding (a)
any items that are identified in the Company's reports filed with the Securities
and Exchange Commission as unusual in nature or nonrecurring (such as
restructuring costs, items related to resolution of litigation, and items
related to mergers, acquisitions and divestitures) and (b) the cumulative
effects of changes in accounting methodology made after September 20, 2000, to
exceed zero for the period January 1, 2001 through December 31, 2001.

Person:  An individual, entity or group within the meaning of Section 13(d)(3)
------
or 14(d)(2) of the Exchange Act.

Phantom Shares: defined in Section 2.
--------------

Pharmacia:  defined in the first paragraph of this Agreement.
---------

Pharmacia Change of Control:  the happening of any of the events described in
---------------------------
subsections (a) through (d) below, if immediately following such event,
Pharmacia beneficially owns a majority of the then-outstanding Shares:

            (a) the acquisition by any Person of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20 percent or
more of either (1) the then-outstanding shares of common stock of Pharmacia (the
"Outstanding Pharmacia Common Stock") or (2) the combined voting power of the
then-outstanding voting securities of Pharmacia entitled to vote generally in
the election of directors (the "Outstanding Pharmacia Voting Securities");
provided, that for purposes of this subsection (a), the following acquisitions
shall not constitute a Change of Control: (A) any acquisition directly from
Pharmacia; (B) any acquisition by the Company, Pharmacia, or a Subsidiary of
either of them; (C) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company, Pharmacia, or a Subsidiary of
either of them; or (D) any acquisition by any corporation pursuant to a
transaction that complies with clauses (1), (2) and (3) of subsection (c) of
this definition;

            (b) individuals who, as of the date of the initial public offering
of the Shares, constitute the Board of Directors of Pharmacia (the "Incumbent

                                      -6-
<PAGE>

Pharmacia Board"), cease for any reason to constitute at least a majority of the
Pharmacia Board; provided, that any individual becoming a director subsequent to
the date hereof whose election, or nomination for election by Pharmacia's
stockholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Pharmacia Board shall be considered as though such
individual were a member of the Incumbent Pharmacia Board, but excluding, for
this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board of Directors of
Pharmacia;

            (c) consummation of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets of Pharmacia
or the acquisition of assets or stock of another corporation (a "Pharmacia
Business Combination"), in each case, unless, following such Pharmacia Business
Combination, (i) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Pharmacia Common
Stock and Outstanding Pharmacia Voting Securities immediately prior to such
Pharmacia Business Combination beneficially own, directly or indirectly, more
than 60% of, respectively, the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Pharmacia Business Combination (including without limitation
a corporation that as a result of such transaction owns Pharmacia or all or
substantially all of Pharmacia's assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Pharmacia Business Combination of the Outstanding
Pharmacia Common Stock and Outstanding Pharmacia Voting Securities, as the case
may be, (ii) no Person (excluding the Company, Pharmacia, a Subsidiary of either
of them, any corporation resulting from such Pharmacia Business Combination or
any employee benefit plan (or related trust) thereof) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then-outstanding
shares of common stock of the corporation resulting from such Pharmacia Business
Combination or the combined voting power of the then-outstanding voting
securities of such corporation except to the extent that such ownership existed
prior to the Pharmacia Business Combination and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such
Pharmacia Business Combination were members of the Incumbent Pharmacia Board at
the time of the execution of the initial agreement, or of the action of the
Board of Directors of Pharmacia, providing for such Pharmacia Business
Combination;

            (d) approval by the stockholders of Pharmacia of a complete
liquidation or dissolution of Pharmacia;

                                      -7-

<PAGE>

Requisite Common Percentage:  as of any given time, a percentage equal to or
---------------------------
greater than the higher of (a) 20 percent and (b) the percentage of the then-
outstanding Shares then beneficially owned by Pharmacia.

Requisite Voting Percentage: as of any given time, a percentage equal to or
---------------------------
greater than the higher of (a) 20 percent and (b) the percentage of the voting
power of the then-outstanding voting securities of the Company entitled to vote
generally in the election of directors then beneficially owned by Pharmacia.

Second Trigger: the occurrence, during the one-year period immediately following
--------------
a Pharmacia Change of Control, of one of the following: (a) more than half of
the members of the Monsanto Leadership Team are terminated by the Company
without Cause or terminate their own employment for Good Reason, as those terms
are defined in their respective Change-of-Control Employment Security
Agreements; (b) the headquarters of the Company is relocated by more than 35
miles from its location immediately before the Pharmacia Change of Control, or a
plan to effect such a relocation is publicly announced; (c) it is publicly
announced that Pharmacia intends to take steps that will result in its ceasing
to beneficially own a majority of the then-outstanding Shares or that would
otherwise result in a Monsanto Change of Control, and such steps have not
previously been approved by a majority of the members of the Monsanto Leadership
Team.

Share Value: with respect to any given date, the average of the daily highest
-----------
and lowest per-share sales prices for the Shares during normal business hours on
the New York Stock Exchange for each of the ten consecutive trading days ending
with the immediately preceding date, or if the Shares were not traded on the New
York Stock Exchange on such date, then ending with the next preceding date on
which the Shares were traded, all as reported by such source as the Committee
may select.

Shares:  defined in Section 2.
------

Subsidiary: with respect to any entity, any corporation, partnership, joint
----------
venture, limited liability company, or other entity or enterprise of which the
first entity owns or controls, directly or indirectly, 50% or more of the
outstanding shares of stock normally entitled to vote for the election of
directors, or of comparable equity participation and voting power.

Termination for Good Reason: Before a Change of Control, "Termination for Good
---------------------------
Reason" shall mean a termination of employment by the Executive as a result of,
and within 90 days after the occurrence of, any of the following events: (a)
[VERFAILLIE ONLY: THE ASSIGNMENT TO THE EXECUTIVE OF ANY DUTIES THAT ARE
MATERIALLY INCONSISTENT IN ANY RESPECT WITH THE EXECUTIVE'S POSITION AS CHIEF
EXECUTIVE OFFICER AND HIS DUTIES AND RESPONSIBILITIES AS SET FORTH IN EXHIBIT A
AND THE BY-LAWS OF THE COMPANY] [OTHERS: A SUBSTANTIAL DIMINU-

                                      -8-

<PAGE>

-TION IN THE EXECUTIVE'S POSITION, AUTHORITY, DUTIES OR RESPONSIBILITIES FROM
THOSE IN EFFECT AS OF THE EFFECTIVE DATE], unless such [VERFAILLIE ONLY:
ASSIGNMENT] [ OTHERS: DIMINUTION] is remedied by the Company within 30 days
after receipt of notice thereof given by the Executive; (b) any reduction in the
amount of, or failure to pay, the Executive's current annual base salary or any
reduction in the amount of, or failure to pay, the Executive's other long-term
aggregate incentive compensation opportunities, perquisites or other benefits,
unless such reduction or failure is remedied by the Company within 30 days after
receipt of notice thereof given by the Executive, or occurs as a result of a
reduction that affects all senior executives of the Company similarly; (c) the
Company's requiring the Executive to be based at any office or location more
than 35 miles from the office where the executive is employed on the Effective
Date or to be based at a location other than the principal executive offices of
the Company. After a Change of Control, "Termination for Good Reason" shall mean
a termination of employment by the Executive for Good Reason, as that term is
defined in the Executive's Change-of-Control Employment Security Agreement.

Termination Without Cause: Before a Change of Control, "Termination Without
-------------------------
Cause" shall mean termination of the Executive's employment by the Company other
than as a result of: (a) the willful and continued failure of the Executive to
perform substantially the Executive's duties with the Company or one of its
affiliates (other than any such failure resulting from incapacity due to
physical or mental illness), after a written demand for substantial performance
is delivered to the Executive by the Board [OR THE CHIEF EXECUTIVE OFFICER OF
THE COMPANY] which specifically identifies the manner in which the Board [OR
CHIEF EXECUTIVE OFFICER] believes that the Executive has not substantially
performed the Executive's duties; (b) the willful engaging by the Executive in
illegal conduct or gross misconduct which is materially and demonstrably
injurious to the Company; or (c) the Executive's Disability. For purposes of
this definition, no act or failure to act, on the part of the Executive, shall
be considered "willful" unless it is done, or omitted to be done, by the
Executive in bad faith or without reasonable belief that the Executive's action
or omission was in the best interests of the Company. Any act, or failure to
act, based upon authority given pursuant to a resolution duly adopted by the
Board [OR UPON THE INSTRUCTIONS OF THE CHIEF EXECUTIVE OFFICER OR A SENIOR
OFFICER OF THE COMPANY] or based upon the advice of counsel for the Company
shall be conclusively presumed to be done, or omitted to be done, by the
Executive in good faith and in the best interests of the Company.
Notwithstanding the foregoing, termination as a result of an event described in
clause (a) or (b) above shall be deemed to be a "Termination Without Cause"
unless and until (i) the Executive has been given the opportunity, on reasonable
advance notice, to be heard before the Board, together with counsel to the
Executive and (ii) there shall have been delivered to the Executive a copy of a
resolution thereafter duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Board (excluding the Executive,
if the Executive is a member of the Board), finding

                                      -9-
<PAGE>

        that, in the good faith opinion of the Board, the Executive is guilty of
        conduct described in either (a) or (b) above, and specifying the
        particulars thereof in detail. After a Change of Control, "Termination
        Without Cause" shall mean a termination of the Executive's employment by
        the Company other than for Cause or Disability, as those terms are
        defined in the Executive's Change-of-Control Employment Security
        Agreement.

        7.  Miscellaneous.  (a)  This Agreement is personal to the Executive
            -------------
and without the prior written consent of the Company shall not be assignable by
the Executive otherwise than by will or the laws of descent and distribution.
This Agreement shall inure to the benefit of and be enforceable by the
Executive's legal representatives.

        (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

        (c) The Company shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
As used in this Agreement, "Company" shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

        (d) This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware, without reference to principles of conflict
of laws. The captions of this Agreement are not part of the provisions hereof
and shall have no force or effect. This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives

        (e) All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

        If to the Executive:
        -------------------

              800 North Lindbergh Boulevard
              St. Louis, Missouri  63167

        If to the Company:
        -----------------

              800 North Lindbergh Boulevard
              St. Louis, Missouri  63167

              Attention:  General Counsel
<PAGE>

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

        (f) The Company may withhold from any amounts payable under this
Agreement such federal, state, local or foreign taxes as shall be required to be
withheld pursuant to any applicable law or regulation.
<PAGE>

        IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to due authorization, the Company and Pharmacia have each caused
these presents to be executed in its name on its behalf, all as of the day and
year first above written.

                                        ----------------------------------
                                                [NAME OF EXECUTIVE]

                                        MONSANTO COMPANY

                                        By
                                          --------------------------------

                                        PHARMACIA CORPORATION

                                        By
                                          --------------------------------

<PAGE>

                               [Verfaillie Only]

                                   EXHIBIT A

In addition to any other authority granted to the Chief Executive Officer
pursuant to the By-Laws of the Company, the Executive shall have such duties,
authority and responsibilities as are customarily associated with the position
of Chief Executive Officer and such other duties and responsibilities as the
Board of Directors of the Company has assigned to him as of September 21, 2000.<PAGE>

                                                                    EXHIBIT 10.6

                              TAX SHARING AGREEMENT

     This Tax Sharing Agreement (this "Agreement"), dated as of September 1,
2000, by and between Pharmacia Corporation, a Delaware corporation ("Parent")
and Monsanto Company, a Delaware corporation ("Sub"). Each of Parent and Sub is
referred to herein as a "Party" and, collectively, as "Parties".

                                   WITNESSETH:
                                   ----------

     WHEREAS, Parent owns 100 percent of the issued and outstanding shares of
common stock of Sub and Sub is a member of an affiliated group within the
meaning of Section 1504(a) of the Code of which Parent is the common parent
corporation (the "Parent Group");

     WHEREAS, prior to the formation of Sub, Parent was engaged in, directly and
indirectly, the Transferred Ag Businesses;

     WHEREAS, pursuant to the Separation Agreement, Parent transferred the
Transferred Ag Businesses to Sub;

     WHEREAS, Sub contemplates issuing less than 20 percent of its stock to the
public in a public offering (the "Ag IPO");

     WHEREAS, in contemplation of the Ag IPO, the Parties have determined to
enter into this Agreement, setting forth their agreement with respect to certain
tax matters.

     NOW THEREFORE, in consideration of the premises and the mutual promises,
undertakings, agreements and obligations set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties, intending to be legally bound, hereby agree as
follows:

     Section 1. Definitions. As used in this Agreement, the following terms
                -----------
shall, unless otherwise specifically noted, have the meanings as set forth
below.

     1.1 "Agreement" shall have the meaning ascribed to that term in the first
          ---------
paragraph hereof.

     1.2 "Adjustment" shall mean any proposed or final change in the Tax
          ----------
liability of the Parent Group, Parent or Sub.

     1.3 "Ag IPO" shall have the meaning ascribed to that term in the fourth
          ------
WHEREAS clause hereof.
<PAGE>

     1.4 "Code" shall mean the Internal Revenue Code of 1986, as amended.
          ----

     1.5 "Consolidated Tax Amount" shall mean, for each Tax Period, the amount
          -----------------------
of: (i) United States Federal income taxes plus (ii) state income taxes
attributable only to those states referred to in Section 3.2 hereof, in each
case that would be due and payable by Sub for each Tax Period if Sub had filed
separate, unconsolidated, noncombined or non-unitary, as the case may be, Tax
Returns for United States Federal income tax purposes and in those states
referred to in Section 3.2 hereof, for such Tax Period and all previous Tax
Periods commencing on or after the Contribution Date, in each case (i) giving
effect to any net operating loss carryovers (as defined by Section 172 of the
Code) incurred by Sub for any period ending on or before the Contribution Date;
and (ii) treating gains or losses on intercompany transactions in the manner
required by Treas. Reg. ss.1.1502-13.

     1.6 "Contribution Date" shall mean the effective date of the contribution
          -----------------
of the Transferred Ag Businesses to Sub pursuant to the Separation Agreement.

     1.7 "DeKalb Tax Liabilities" shall mean the amount of (i) Federal income
          ----------------------
taxes, plus (ii) state income taxes, accruing in respect of periods ending on or
prior to December 31, 1999 and that are attributable solely to the operations of
DeKalb Genetics Corporation and its subsidiaries

     1.8 "Dispute" shall have the meaning ascribed to that term in Section 8
          -------
hereof.

     1.9 "Estimated Tax Amount" shall mean the amount of: (i) Federal income
          --------------------
taxes, plus (ii) state income taxes attributable only to those states referred
to in Section 3.2 hereof, that would be due and payable by Sub on the applicable
Estimated Tax Payment Date if Sub had filed separate, unconsolidated,
noncombined or non-unitary, as the case may be, Tax Returns for United States
Federal income tax purposes and in those states referred to in Section 3.2
hereof for all Tax Periods commencing on or after the Contribution Date, in each
case (i) giving effect to any net operating loss carryovers (as defined by
Section 172 of the Code) incurred by Sub for any period ending on or before the
Closing Date; and (ii) treating gains or losses on intercompany transactions in
the manner required by Treas. Reg. ss.1.1502-13.

     1.10 "Federal Tax" shall mean any tax imposed under Subtitle A of the Code.
           -----------

     1.11 "Final Determination" shall mean the final resolution of any tax
           -------------------
matter relating to Parent, Sub or any member of the Parent Group occurring after
the Contribution Date. A Final Determination shall result from the first to
occur of:

                                       2
<PAGE>

          (a) the expiration of 30 days after the IRS' acceptance of a waiver of
restrictions on assessment and collection of deficiency in tax and acceptance of
overassessment on federal revenue (Form 870 or 870-AD (the "Waiver")) or any
successor comparable form, except as to reserved matters specified therein, or
the expiration of 30 days after acceptance by any other taxing authority of a
comparable agreement or form under the laws of any other jurisdiction, including
State, local, and foreign, unless, within such period, the taxpayer gives notice
to the other Party to this Agreement of the taxpayer's intention to attempt to
recover all or part of any amount paid pursuant to the Waiver by filing of a
timely claim for refund;

          (b) a decision, judgment, decree, or other order by a court of
competent jurisdiction that is not subject to further judicial review (by appeal
or otherwise) and has become final;

          (c) the execution of a closing agreement under Section 7121 of the
Code, or the acceptance by the IRS of an offer on compromise under Section 7122
of the Code, or comparable agreements under the laws of any other jurisdiction,
including State, local, and foreign, except as to reserved matters specified
therein;

          (d) the expiration of the time for filing a claim for refund or for
instituting suit in respect of a claim for refund that was disallowed in whole
or part by the IRS or any other taxing authority;

          (e) the expiration of the applicable statute of limitations; or

          (f) an agreement by the Parties that a Final Determination has been
made.

     1.12 "Income Taxes" shall mean taxes imposed upon, or measured, in whole or
           ------------
in part, by net income or a taxable base in the nature of net income, including
without limitations, environmental and alternative add-on minimum taxes, and
such related franchise, excise, and similar taxes as have been customarily
included in the provision for income taxes or charged to the income tax
liability account on Parent's financial statements, together with all related
interest, penalties, and additions to tax.

     1.13 "Indemnified Party" shall mean any Party who is entitled to receive
           -----------------
payments from an Indemnifying Party pursuant to the terms of this Agreement.

     1.14 "Indemnifying Party" shall mean any Party that is required to pay any
           ------------------
other Party pursuant to the terms of this Agreement.

     1.15 "IPO Restructuring" shall mean the transfer or assignment of a
           -----------------
Retained Business or a Transferred Ag Business by any entity owned by Parent or
the affiliates of Parent other than Sub and its subsidiaries to Parent or an
affiliate of Parent other than Sub and its subsidiaries in anticipation of the
transfer by Parent of the Transferred Ag Businesses to Sub pursuant to the
Separation Agreement.

                                       3
<PAGE>

     1.16 "IPO Restructuring Tax" shall mean any Tax resulting from the IPO
           ---------------------
Restructuring imposed upon Parent or any affiliate of Parent other than Sub and
its subsidiaries reduced by an amount equal to the present value (calculated
using a discount rate of 10 percent) of any Tax Asset created in the related IPO
Restructuring transaction and retained by the Parent Group.

     1.17 "IRS" shall mean the United States Internal Revenue Service or any
           ---
successor thereto, including but not limited to its agents, representatives, and
attorneys.

     1.18 "Other Taxes" shall mean any and all taxes other than Income Taxes,
           -----------
including, without limitation, gross income, gross receipts, sales, use,
transfer, franchise, license, withholding, payroll, value added, employment,
excise, severance, stamp, occupations, premium, windfall profits, custom, duty,
real and personal property and ad valorem taxes or other charge of any kind
whatsoever, together with all related interest, penalties, and additions to tax,
or additional amount imposed by any taxing authority.

     1.19 "Parent" shall have the meaning ascribed to that term in the first
           ------
paragraph hereof.

     1.20 "Parent Group" shall have the meaning ascribed to that term in the
           ------------
first WHEREAS clause hereof.

     1.21 "Party" shall have the meaning ascribed to that term in the first
           -----
paragraph hereof.

     1.22 "Separation Agreement" shall mean the Separate Agreement dated as of
           --------------------
September 1, 2000, between Parent and Sub.

     1.23 "State Tax" shall mean any income, franchise or similar tax payable to
           ---------
a state or local taxing jurisdiction of any of the 50 United States of America.

     1.24 "Sub" shall have the meaning ascribed to that term in the first
           ---
paragraph hereof.

     1.25 "Subsidiary" shall mean entities owned and controlled by Parent or Sub
           ----------
wherever formed.

     1.26 "Tax" shall mean (i) any Federal Tax, or any net income, alternative
           ---
or add-on minimum, gross income, gross receipts, sales, use, ad valorem, value
added, transfer, franchise, profits, license, withholding (as payor or
recipient), payroll, employment, excise, severance, stamp, capital stock,
occupation, property, real property gains, environmental, windfall, premium,
custom, duty or other tax,

                                       4
<PAGE>

governmental fee or other like assessment or charge of any kind whatsoever,
together with any interest thereon and any penalty, addition to tax or
additional amount thereto.

     1.27 "Tax Asset" shall mean any net operating loss, net capital loss,
           ---------
business tax credit, foreign tax credit, charitable deduction, or any other
loss, credit, deduction or tax attribute that could be applied to reduce any tax
(including, without limitation, deductions, credits, alternative minimum net
operating loss carryforwards related to alternative minimum taxes or additions
to the basis of property).

     1.28 "Tax Period" shall mean the period commencing on the Contribution Date
           ----------
and ending on December 31, 2000 and each subsequent period commencing on
January 1 and ending on the earlier of the next succeeding December 31 or the
date on which Sub first becomes no longer qualified under the Code or other
applicable law to be a member of the Parent Group.

     1.29 "Tax Returns" shall mean all reports, estimates, declarations of
           -----------
estimated tax, information statements and returns relating to, or required to be
filed in connection with any Income Taxes or Other Taxes, including information
returns or reports with respect to backup withholding and other payments to
third parties.

     1.30 "Transferred Ag Businesses" shall mean the assets, liabilities and
           -------------------------
businesses transferred to Sub pursuant to the terms of the Separation Agreement.

     1.31 "Treas. Reg." shall mean the United States Treasury Regulations
           ----------
promulgated under the Code.

     Section 2. Pre-IPO Tax Liabilities.
                -----------------------

     2.1 Retained Tax Assets and Liabilities.
         -----------------------------------

          (a) Notwithstanding anything to the contrary herein, except for any
IPO Restructuring Tax, any DeKalb Tax Liability, any property taxes attributable
to Sub assets, and any sales and use taxes attributable to Sub's assets or
businesses, Parent shall be liable for (and shall indemnify and hold Sub
harmless from and against), any Tax liability of Parent, any Subsidiary of
Parent, Sub and any Subsidiary of Sub, attributable to periods through and
including August 31, 2000, whether or not such period constitutes a fiscal
period under applicable law.

          (b) For purposes of Section 2.1(a) hereof, the determination of Tax
liability shall be made on the basis of a closing of the books of each relevant
entity and indemnity payments required under Section 2.1(a) hereof shall be made
in accordance with the following procedures:

(i) No later than 30 days prior to the due date of each applicable Tax Return,
Sub shall deliver to Parent pro forma Tax Returns for Sub and each Subsidiary of
Sub whose income or items will not be reflected in Tax Returns of Parent or its
Subsidiaries (other

                                       5
<PAGE>

than Sub and its Subsidiaries) for the period commencing with the first day of
any fiscal year for which a Tax Return has not been filed as of the Contribution
Date and ending on August 31, 2000.

(ii) Upon receipt of a pro forma Tax Return from Sub referred to in Section
                       --- -----
2.1(b)(i) hereof, Parent may adjust such returns if it determines in good faith
that the amounts reflected in such returns are incorrect or incomplete.

(iii) If no dispute arises in connection with the pro forma Tax Returns prepared
                                                  --- -----
pursuant to Section 2.1(b)(i) hereof, Parent shall pay to Sub the amounts
reflected as Tax liability within 30 days after its receipt of such pro forma
                                                                    --- -----
tax returns.

(iv) Disputes relating to pro forma Tax Returns prepared pursuant to Section
                          --- -----
2.1(b)(i) hereof shall be resolved in accordance with the procedures set forth
in Section 8 hereof, and payments of disputed items shall be made within 5 days
after final resolution of such disputes.

     2.2 Responsibility for Taxes Attributable to Restructuring and DeKalb Tax
         ---------------------------------------------------------------------
Liabilities. Notwithstanding any other provision of this Agreement, Sub shall be
-----------
responsible for (and shall indemnify and hold Parent harmless from and against),
any IPO Restructuring Tax and any DeKalb Tax Liabilities. Indemnification
payments under this Section 2.2 shall be made by Sub to Parent within 30 days
after a Final Determination that Parent owes such IPO Restructuring or DeKalb
Tax Liability.

     Section 3. Filing of Income and Other Tax Returns.
                --------------------------------------

     3.1 Federal Consolidated Income Tax Return. A United States federal
         --------------------------------------
consolidated income tax return for the Parent Group, including Sub as a member
thereof, shall be filed by Parent for the taxable year ending December 31, 2000,
and for each subsequent taxable year in respect of which this Agreement is in
effect and for which Sub is qualified under the Code to be included as a member
of the Parent Group and the Parent Group is required or permitted to file a
consolidated federal income tax return. Parent and Sub shall execute and file
any and all consents, elections, and other documents and take such other action
that may be required or appropriate for the proper filing of such returns.

     3.2 State Income Tax Returns. If Parent in its discretion elects (or if
         ------------------------
required by law), Parent and Sub shall join in the filing of combined, unitary
or other similar consolidated Tax Returns with respect to all Income Taxes
imposed by any of the 50 United States of America for the taxable year ending
December 31, 2000, and for each subsequent taxable year in respect of which this
Agreement is in effect and for which Sub is qualified under applicable law to
join in filing of such combined, unitary or other similar consolidated Tax
Returns. Parent and Sub shall execute and file any and all consents, elections,
and other documents and take such other action that may be required or
appropriate for the proper filing of such returns.

                                       6
<PAGE>

     3.3 Parent Responsibilities for Consolidated, Combined and Unitary Tax
         ------------------------------------------------------------------
Returns. Parent shall prepare and file, or cause to be prepared and filed, all
-------
Tax Returns for Income Taxes referred to in Sections 3.1 and 3.2 hereof and
Parent shall timely pay, or cause to be timely paid, the liability for Income
Taxes due in respect of such Tax Returns. In preparing such Tax Returns, Parent
shall have the right to determine the manner in which such Tax Returns shall be
prepared and filed, including, without limitation, the manner in which any item
of income, gain, loss, deduction or credit shall be reported thereon and the Tax
elections to be made or modified. Parent shall not unreasonably interfere with
the manner in which Sub has reported any item of income, gain loss, deduction
credit or Tax elections made by Sub with respect to such Tax Returns.

     3.4 Sub Responsibilities for Separate Income Tax Returns. Sub and its
         ----------------------------------------------------
Subsidiaries shall prepare and file, or cause to be prepared and filed, all Tax
Returns for Income Taxes required by law to be filed by it or them and not
referred to in Section 3.2 hereof, Sub and its Subsidiaries shall timely pay or
cause to be timely paid all Income Taxes due in respect of such Tax Returns.

     3.5 Parent Responsibilities for Other Taxes. Parent shall timely prepare
         ---------------------------------------
and file or cause to be timely prepared and filed, all Tax Returns in respect of
Other Taxes attributable to its business and assets and the businesses and
assets of its subsidiaries (other than Sub) and shall timely pay all Taxes due
in respect of those Tax Returns.

     3.6 Sub's Responsibilities for Other Taxes. Sub shall timely prepare and
         --------------------------------------
file or cause to be timely prepared and filed, all Tax Returns in respect of
Other Taxes attributable to its businesses and assets and shall timely pay all
Taxes due in respect of those Tax Returns.

     Section 4. Sharing of Income Taxes.
                -----------------------

     4.1 General Tax Sharing Principles. Sub shall pay to Parent (and shall
         ------------------------------
indemnify and hold harmless Parent against) the Consolidated Tax Amount at such
times and in such amounts specified in Sections 4.2 and 4.3 hereof.

     4.2 Estimated Payments.
         ------------------

     (a) No later than 5 days prior to the date on which an estimated Federal
Tax installment or an estimated State Tax installment of the Parent Group is
due, Sub shall determine the Estimated Tax Amount

     (b) No later than the Federal Tax payment date or the State Tax payment
date, as the case may be, Sub shall pay to Parent the Estimated Tax Amount

     4.3 Payment of Taxes at Year-End.
         ----------------------------

                                       7
<PAGE>

          (a) No later than 10 days prior to the due date (including all
applicable and valid extensions) for the Parent Group's consolidated Federal Tax
Return for each Tax Period, Sub shall deliver to Parent a pro forma Federal Tax
Return of Sub reflecting Sub's Consolidated Tax Amount for such Tax Period
prepared by Sub in good faith. No later than 10 days prior to the due date
(including all applicable and valid extensions) for each State Tax Return that
includes Sub and another member of the Parent Group for each Tax Period, Sub
shall deliver to Parent a pro forma State Tax Return reflecting Sub's
Consolidated Tax Amount for such Tax Period prepared by Sub in good faith. Each
pro forma Tax Return shall be delivered together with a statement showing a
calculation of the amount to be paid pursuant to Section 4.3(c) below.

          (b) Upon receipt of a pro forma Tax Return from Sub, Parent may adjust
such return if it determines that the calculation of the Consolidated Tax Amount
reflected on such return or returns is incorrect or incomplete. Any adjustment
made by Parent under this Section 4.3(b) shall be treated as though it had
always been reflected on such pro forma return. Sub shall not be permitted to
invoke the dispute resolution procedures in Section 8 of this Agreement until it
shall have paid any amounts required under Section 4.3(c) of this Agreement.

          (c) No later than the due date for any Parent Tax Return to which a
pro forma Return prepared pursuant to Section 4.3(a) of this Agreement is
attributable, Sub shall pay to Parent an amount equal to the difference, if any,
between the Consolidated Tax Amount reflected on such pro forma Tax Return for
the applicable Tax Period and the aggregate Estimated Tax Amount paid by Sub
with respect to such Tax Return and Tax Period under Section 4.2(a) of this
Agreement.

          (d) If a pro forma Tax Return described in Section 4.2(a) of this
Agreement reflects a Tax Asset that may under applicable law be used to reduce a
Federal or State Tax liability in each case for any Tax Period of a member of
the Parent Group other than Sub and its subsidiaries, Parent shall pay to Sub an
amount equal to the actual tax saving produced by such Tax Asset within 30 days
of the realization of such tax saving, and the pro forma Tax Returns of Sub and
other relevant determinations hereunder shall thereafter reflect such use. The
amount of tax saving under this Section 4.3(d) for any Tax Period shall be the
amount of the reduction in Federal or State Taxes that are payable to a taxing
authority with respect to such Tax Period, as compared to the federal or state
taxes that would have been payable to a taxing authority with respect to such
Tax Period in the absence of such Tax Asset. Without limiting the generality of
the foregoing, the determination of the tax saving under this Section 4.3(d)
shall take into account any net decrease in the foreign tax credits and business
credits which would otherwise have been available to the Parent Group by reason
of the use of such Tax Asset.

     4.4 Treatment of Adjustments. (a) If any adjustment of a Tax item is made
         ------------------------
to a Return relating to Federal or State Taxes of the Parent Group, after the
filing thereof, in which income or loss of any of Sub is included, then within
30 days of the time of a Final Determination of such adjustment, Sub shall pay
to Parent, or Parent shall pay to Sub, as

                                       8
<PAGE>

the case may be and as appropriate, (i) the difference between (A) all payments
actually made, net of all refunds or recoupments received or otherwise realized,
by Sub (or treated as such) in accordance with the principles of this Article 3
with respect to such item for the Tax Period covered by such Return, and (B) all
payments that would have been made by Sub (or treated as such) in accordance
with the principles under Article 3 with respect to such item for the Tax Period
covered by such Return taking such adjustment into account and (ii) related
adjustments to penalties and interest.

     Section 5.  Audits and Other Tax Proceedings.
                 --------------------------------

             5.1 Control Over Tax Proceedings.
                 ----------------------------

     (a) Notwithstanding anything in this Agreement to the contrary, Parent
shall have full control over any and all matters relating to Parent or any
member of the Parent Group and Sub and its affiliates with respect to (i) the
conduct, management, prosecution, defense, contest, compromise or settlement of
(A) any adjustment or deficiency proposed, asserted or assessed as a result of
any audit of any Return or claim for Tax refund, or (B) any other Tax
proceeding, (ii) the determination of the taxable years that a settlement of a
Tax proceeding may impact and other timing considerations, (iii) the
determination as to whether any refunds shall be received by way of refund,
credited against tax liability or otherwise applied to any tax period, (iv) the
determination as to the treatment of Tax Assets that are allowed under
applicable law to be carried back or carried forward, (v) the determination as
to whether any Tax elections shall be made or modified, (vi) the determination
as to whether any extensions shall be requested or granted, and (vii) the making
of payments to, or collection of refunds from, any Taxing authority.

     (b) Without limiting the generality of Section 5.1(a), Parent may, in its
sole and absolute discretion, settle any Tax proceeding (including, without
limitation, any Tax proceeding relating to any and all matters that would give
rise to an indemnity from Sub). Any such settlement shall be binding on the
parties to this Agreement without further recourse.

     Section 6. Cooperation and Exchange of Information.
     --------------------------------------------------

     6.1 Consult and Cooperate. Parent and Sub shall consult and cooperate (and
         ---------------------
shall cause their respective subsidiaries to cooperate) fully at such time and
to the extent reasonably requested by a party to this Agreement in connection
with all matters subject to this Agreement. The cooperation under this Section
6.1 shall include, without limitation:

     (i) the retention and provision on reasonable request of any information
(including, without limitation, any books, records, documentation or other
information) pertaining to Tax matters relating to Sub and members of the Parent
Group other than Sub, any necessary explanations of information, and access to
personnel, until the

                                       9
<PAGE>

expiration of the applicable statute of limitation (giving effect to any
extension, waiver, or mitigation thereof);

     (ii) the execution, acknowledgement and delivery of any instrument or
document that may be necessary or helpful in connection with (A) any Return, (B)
any Tax proceeding or other litigation, investigation or action relating to
Taxes, or (C) the carrying out of the parties' respective obligations under this
Agreement; and

     (iii) the use of the parties' best efforts to obtain any documentation from
a Taxing authority, another governmental authority or another third party that
may be necessary or helpful in connection with the foregoing.

     6.2 Information Sharing. Parent and Sub shall keep one another informed
         -------------------
with respect to any material developments relating to the matters subject to
this Agreement.

     Section 7. Procedure for Making Payments. All payments to be made under
                -----------------------------
this Agreement shall be made in immediately available funds. Except as otherwise
provided, all payments required to be made under this Agreement shall be due 30
days after the receipt of notice of such payment or, where no notice is
required, 30 days after (i) the fixing of tax liability, (ii) the realization of
a tax saving, tax benefit or tax attribute, (iii) the receipt of a refund, or
(iv) the resolution of a dispute, as the case may be. Unless otherwise
indicated, any payment that is not made when due shall bear interest at the
prevailing short term rate as determined under Section 6621 of the Code.

     Section 8. Dispute Resolution. The parties hereto shall attempt in good
                ------------------
faith to resolve any dispute arising out of, or relating to, this Agreement (a
"Dispute") and shall attempt in good faith to negotiate a settlement of any
Dispute. If, after the filing of any Tax Return under this Agreement, the
parties hereto are unable to resolve any disagreement or Dispute relating to
such Tax Return or the calculation of any payment under this Agreement, such
Dispute shall be submitted for resolution by the certified public accounting
firms then acting as independent auditors of each of Parent and Sub. If the
independent auditors cannot agree to a resolution, then such Dispute shall be
submitted for resolution by a third certified public accounting firm to be
appointed by mutual agreement of the independent auditors. Any decision by such
third certified public accounting firm shall be binding on the parties to this
Agreement without further recourse.

                Section 9.  Miscellaneous.
                            -------------

     9.1 Term of the Agreement. This Agreement shall become effective as of the
         ---------------------
date of its execution and, except as otherwise expressly provided herein, shall
continue in full force and effect until the expiration of the latest applicable
statute of limitations period.

                                       10
<PAGE>

     9.2 Subsidiaries of Sub. This Agreement shall apply to all current and
         -------------------
subsequently acquired or created direct and indirect subsidiaries and limited
liability companies and partnerships owned by Sub and whose income or loss are
(or become) included in a consolidated, combined, unitary or similar Tax Return
that includes Parent and all references to Sub herein shall be interpreted to
refer to Sub and such subsidiaries as a group.

     9.3 Severability. If any term, provision, covenant, or restriction of this
         ------------
Agreement is held by a court of competent jurisdiction to be invalid, void, or
unenforceable, the remainder of the terms, provisions, covenants, and
restrictions set forth herein shall remain in full force and effect, and shall
in no way be affected, impaired, or invalidated. It is hereby stipulated and
declared to be the intention of the Parties that they would have executed the
remaining terms, provisions, covenants, and restrictions without including any
of such which may be hereafter declared invalid, void, or unenforceable. In the
event that any such term, provision, covenant, or restriction is held to be
invalid, void, or unenforceable, the Parties hereto shall use their best efforts
to find and employ an alternate means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant, or
restriction.

     9.4 Assignment. Except by operation of law or in connection with the sale
         ----------
of all or substantially all the assets of a Party hereto, this Agreement shall
not be assignable, in whole or in part, directly or indirectly, by any Party
hereto without the advance written consent of the other Party; and any attempt
to assign any rights or obligations arising under this Agreement without such
consent shall be void; provided, however, that the provisions of this Agreement
shall be binding upon, inure to the benefit of, and be enforceable by, the
Parties hereto and their respective successors and permitted assigns.

     9.5 Further Assurances. Subject to the provisions hereof, the Parties
         ------------------
hereto shall make, execute, acknowledge, and deliver such other instruments and
documents, and take all such other actions, as may be reasonably required in
order to effectuate the purposes of this Agreement and to consummate the
transactions contemplated hereby. Subject to the provisions hereof, each of the
Parties shall, in connection with entering into this Agreement, performing its
obligations hereunder and taking any and all actions relating hereto, comply
with all applicable laws, regulations, orders, and decrees, obtain all required
consents and approvals and make all required filings with any governmental
agency, other regulatory or administrative agency, commission or similar
authority, and promptly provide the other Parties with all such information as
they may reasonably request in order to be able to comply with the provisions of
this sentence.

     9.6 Parties in Interest. Except as herein otherwise specifically provided,
         -------------------
nothing in this Agreement expressed or implied is intended to confer any right
or benefit upon any person, firm, or corporation other than the Parties and
their respective successors and permitted assigns.

                                       11
<PAGE>

     9.7 Waivers, Etc. No failure or delay on the part of the Parties in
         ------------
exercising any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise or any such right or power, or any
abandonment or discontinuance of steps to enforce such right or power, preclude
any other or further exercise thereof or the exercise of any other right or
power. No modification or waiver of any provision of this Agreement nor consent
to any departure by the Parties therefrom shall in any event be effective unless
the same shall be in writing, and then such waiver or consent shall be effective
only in the specific instance and for the purpose for which given.

     9.8 Setoff. All payments to be made by any Party under this Agreement shall
         ------
be made without setoff, counterclaim, or withholding, all of which are expressly
waived.

     9.9 Change of Law. If, due to any change in applicable law or regulations
         -------------
or their interpretation by any court of law or other governing body having
jurisdiction subsequent to the date of this Agreement, performance of any
provision of this Agreement or any transaction contemplated thereby shall become
impracticable or impossible, the Parties hereto shall use their best efforts to
find and employ an alternative means to achieve the same or substantially the
same result as the contemplated by such provisions.

     9.10 Confidentiality. Subject to any contrary requirement of law and the
          ---------------
right of each Party to enforce its rights hereunder in any legal action, each
Party agrees that it shall keep strictly confidential, any information which it
or any of its employees or agents may require pursuant to, or in the course of
performing its obligations under, any provisions of this Agreement.

     9.11 Headings. Descriptive headings are for convenience only and shall not
          --------
control or affect the meaning or construction of any provision of this
Agreement.

     9.12 Counterparts. This Agreement may be executed in any two or more
          ------------
counterparts, each of which, when executed, shall be deemed to be an original
and all of which together shall constitute one and the same document.

     9.13 Notices. All notices, consents, requests, instructions, approvals, and
          -------
other communications provided for herein shall be validly given, made, or
served, if in writing and delivered personally, by telegram or sent by
registered mail, postage prepaid, or by facsimile transmission to:

     If to Parent, to it at:

          Pharmacia Corporation
          100 Route 206 North
          Peapack, New Jersey 07977
          Attention: General Counsel

                                       12
<PAGE>

          Facsimile Number: 908-901-8379

     With a copy to:

          Pharmacia Corporation
          100 Route 206 North
          Peapack, New Jersey  07977
          Attention:  Vice President - Tax
          Facsimile Number:  908-901-8379

     With a copy to:

          Allen & Overy
          10 East 50th Street
          New York, New York  10022
          Attention:  Robert W. DeJoy, Jr.
          Facsimile Number:  212-610-6399

     If to Sub, to it at:

          Monsanto Company
          800 North Lindbergh Boulevard
          St. Louis, Missouri 63167
          Attention:  General Counsel
          Facsimile Number:  314-694-3011

                                       13
<PAGE>

     With a copy to:

          Monsanto Company
          800 North Lindbergh Boulevard
          St. Louis, Missouri 63167
          Attention:  Vice President - Tax
          Facsimile Number:  314.694.5423

     With a copy to:

          Allen & Overy
          10 East 50th Street
          New York, New York  10022
          Attention:  Robert W. DeJoy, Jr.
          Facsimile Number:  212-610-6399

Or such  other  address  as any Party  may,  from time to time,  designate  in a
written  notice given in like manner.  Notice given by telegram  shall be deemed
delivered when received by the recipient.  Notice given by mail as set out above
shall be deemed  delivered five calendar days after the date the same is mailed.
Notice given by facsimile  transmission  shall be deemed delivered on the day of
transmission  provided  telephone  confirmation or receipt is obtained  promptly
after completion of transmission.

     9.14 Costs and Expenses. Unless otherwise specifically provided herein,
          ------------------
each Party agrees to pay its own costs and expenses resulting from the
fulfillment of its respective obligations hereunder.

     9.15 Applicable Law. This Agreement shall be governed by and construed and
          --------------
enforced in accordance with the domestic substantive laws of the State of
Delaware without regard to any choice or conflict of laws, rules, or provisions
that would cause the application of the domestic substantive laws of any other
jurisdiction.

                                       14
<PAGE>

     IN WITNESS WHEREOF, the Parties, by their duly authorized officers, have
executed this Agreement as of the date first written above.

                                     PHARMACIA CORPORATION

                                     By: _________________________
                                          Name:
                                          Title:

                                     MONSANTO COMPANY

                                     By: _________________________
                                          Name:
                                          Title:

                                      15

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