LANDEC CORP \CA\
EXHIBIT 10.71
<DOCUMENT>
<TYPE>EX-10.71
<SEQUENCE>3
<FILENAME>f25592exv10w71.htm
<DESCRIPTION>EXHIBIT 10.71
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.71</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">LICENSE, SUPPLY AND R&#038;D AGREEMENT
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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">by and among

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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">LANDEC CORPORATION,

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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">LANDEC AG, INC.

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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and

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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MONSANTO COMPANY

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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">December&nbsp;1, 2006

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<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
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<TR valign="bottom">
    <TD align="left" valign="top">1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">DEFINITIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 1 -</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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    <TD align="center" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">LICENSE GRANTS AND IP OWNERSHIP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 5 -</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.1. License Grants to Monsanto</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 5 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.2. License Grants to Landec</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 8 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.3. Retained Rights and Ownership</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 8 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">ANNUAL PAYMENTS AND BUY-OUT OPTION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 9 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.1. Annual Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 9 -</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.2. Buy-Out Option</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 9 -</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.3. Long-Term Supply</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 9 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.4. Effects of Buy-Out</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 9 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.5. Failure to Exercise the Buy-Out Option</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 11 -</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.6. Undertakings Relating to Buy-Out Option</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 11 -</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">SUPPLY OF LICENSED PRODUCT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 12 -</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.1. Supply Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 12 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.2. Monsanto&#146;s Responsibilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 13 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.3. Landec&#146;s Responsibilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 13 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.4. Payment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 14 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.5. Records and Audit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 15 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.6. Sole Remedy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 15 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.7. Title</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 15 -</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">5.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">SERVICES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 15 -</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.1. Operating Services</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 15 -</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.2. Monsanto&#146;s Support Services</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 17 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.3. Sales Agency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 17 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.4. Costs of Services</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 18 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.5. Records and Audit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 20 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.6. Workforce</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 20 -</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">6.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">INTELLECTUAL PROPERTY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 20 -</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.1. Filing, Prosecution and Maintenance of Patent Rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 20 -</TD>
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<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.2. Filing, Prosecution and Maintenance of Licensed Trademarks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 23 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.3. Enforcement of Patent Rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 23 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.4. Defense of Third Party Infringement Action</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 25 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.5. Patent Term Restoration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 26 -</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">7.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">CONFIDENTIALITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 27 -</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.1. Confidential Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 27 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.2. Exceptions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 27 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.3. Authorized Disclosure and Use</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 27 -</TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.4. SEC Filings and Other Disclosures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 28 -</TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.5. Public Announcements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 28 -</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">8.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">REPRESENTATIONS, WARRANTIES AND COVENANTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 28 -</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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    <TD align="center" valign="top">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.1. Representations, Warranties and Covenants of Each Party</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 28 -</TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.2. Additional Representations, Warranties of Landec</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 29 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.3. Representation by Legal Counsel</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 29 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.4. No Inconsistent Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 29 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.5. Warranty Disclaimer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 30 -</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">9.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">TERM AND TERMINATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 30 -</TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.1. Term</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 30 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.2. Termination by Monsanto</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 30 -</TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.3. Termination for Cause</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 30 -</TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.4. Effects of Termination</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 31 -</TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.5. Survival of Certain Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 31 -</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD align="left" valign="top">10.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">INDEMNIFICATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 31 -</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.1. Indemnification by Landec</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 31 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.2. Indemnification by Monsanto</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 32 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.3. Conditions to Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 33 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.4. Limitations of Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 33 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.5. Sole Remedy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 34 -</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">11.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">MISCELLANEOUS TERMS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 34 -</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.1. General Payment Terms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 34 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.2. Assignment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 34 -</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->ii<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.3. Amendment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 35 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.4. Waiver</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 35 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.5. Governing Law and Jurisdiction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 35 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.6. UN Convention on Contracts for Sale of Goods</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 35 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.7. Bankruptcy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 35 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.8. Dispute Resolution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 35 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.9. Descriptive Headings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 36 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.10. Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 36 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.11. Entire Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 38 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.12. Force Majeure</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 38 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.13. Severability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 38 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.14. No Implied License</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 38 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.15. Basis of Bargain</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 38 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.16. Further Actions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 39 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.17. Independent Contractors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 39 -</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.18. Counterparts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">- 39 -</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->iii<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBITS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Exhibit&nbsp;A</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Licensed Patent Rights owned by Landec Corporation</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Exhibit&nbsp;B</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Licensed Patent Rights owned by Landec Ag</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Exhibit&nbsp;C</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Licensed Trademarks</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Exhibit&nbsp;D</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Direct Costs as of the Effective Date</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Exhibit&nbsp;E</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Warranty and Disclaimer Language</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->iv<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LICENSE, SUPPLY AND R&#038;D AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This License, Supply and R&#038;D Agreement (this &#147;<U>Agreement</U>&#148;) is entered into as of
December 1, 2006 (the &#147;<U>Effective Date</U>&#148;), by and among LANDEC CORPORATION, a corporation
organized and existing under the laws of the state of California (&#147;<U>Landec Corporation</U>&#148;),
LANDEC AG, INC., a corporation organized and existing under the laws of the state of Delaware and a
subsidiary of Landec Corporation (&#147;<U>Landec Ag</U>,&#148; and together with Landec Corporation,
&#147;<U>Landec</U>&#148;), and MONSANTO COMPANY, a corporation organized and existing under the laws of the
state of Delaware (together with its Affiliates referred to herein as &#147;<U>Monsanto</U>&#148;). Landec
Corporation, Landec Ag and Monsanto may each be referred to herein individually as a
&#147;<U>Party</U>&#148; and collectively as the &#147;<U>Parties</U>.&#148;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Background</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Landec has developed and commercialized a broad technology and business, including
proprietary technology, patents, technical know-how, trade secrets and other intellectual property
rights, for seed coatings and coating-related processes, and systems designed to control and
enhance germination and other seed performance characteristics, and the formulation, application
and the use of such coatings, processes and systems, either alone or in combination with
herbicides, fungicides, insecticides, nutrients and other additives (the foregoing collectively
referred to as the &#147;<B>Intellicoat</B><SUP style="font-size: 85%; vertical-align: text-top"><B><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> </B></SUP><B>Seed Coating Technology</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Monsanto, an agricultural company, produces leading seed brands in large-acre crops
like corn, cotton and oilseeds (soybeans and canola);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Monsanto desires to obtain, and Landec desires to grant to Monsanto, a non-exclusive
license to Landec&#146;s Intellicoat<SUP style="font-size: 85%; vertical-align: text-top"><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> </SUP>Seed Coating Technology; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE, in consideration of the mutual promises and covenants set forth below and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Agreement</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Definitions.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Affiliate</B>&#148; means, with respect to any person or entity, any other
person or entity which controls, is controlled by or is under common control with
such person or entity. A person or entity will be regarded as in control of
another entity if it owns or controls more than fifty percent (50%) of the equity
securities of the subject entity entitled to vote in the election of directors (or,
in the case of an entity that is not a corporation, for the election of the
corresponding managing authority).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Commercially Reasonable Efforts</B>&#148; means those efforts, activities,
measures, and resources of a diligent Third Party active in a similar field as the
Party under the obligation to make such efforts would consider to be</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 1 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>commercially reasonable, feasible and viable to be performed, undertaken or made
in or under the specific circumstances.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Confidential Information</B>&#148; means, with respect to each Party,
proprietary data or information that belongs in whole or in part to such Party or
information designated as Confidential Information of such Party hereunder, in all
cases that, if disclosed in writing, is marked with the words &#147;Confidential,&#148;
&#147;Proprietary&#148; or words of similar import and, if disclosed orally or visually, is
described in reasonable detail in a written notice sent by the disclosing party to
the receiving party within thirty (30)&nbsp;days of the oral or visual disclosure
requesting that such information be treated as Confidential Information hereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Control</B>&#148; or &#147;<B>Controlled</B>&#148; means, with respect to any (a)&nbsp;item of
information, including, without limitation, Know-How, or (b)&nbsp;intellectual property
or other right, the possession of the right, whether directly or indirectly, and
whether by ownership, license or otherwise, to grant to the other Party access or a
license, sublicense or other right to or under such item or right without violating
the terms of any agreement or other arrangements with any Third Party existing
before or after the Effective Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Direct Costs</B>&#148; means the cost of all raw materials and contract
manufacturing charges (including direct labor, but excluding the costs of Operating
Services paid by Monsanto to Landec pursuant to <U>Section&nbsp;5.4</U>) incurred by
Landec in manufacturing and supplying Polymer or Formulation ordered by Monsanto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Ex Works</B>&#148; has the meaning set forth in Incoterms 2000, ICC Official
Rules for the Interpretation of Trade Terms, ICC Publication No.&nbsp;560.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Field</B>&#148; means the treatment and coating of seeds, including without
limitation, the seeds of alfalfa, canola, corn, cotton and soybean, and the use of
such coated seeds.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Formulation</B>&#148; means agricultural seed coatings using the Polymer or
derivatives thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Governmental Authority</B>&#148; means any government or agency,
instrumentality or other subdivision thereof, including courts and tribunals, and
the states, provinces and other subdivisions thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Improvement</B>&#148; means all Patent Rights and other intellectual property
rights on any improvement to the Polymer or derivatives thereof, methods for
applying the Polymer or derivatives thereof to seed, or preparation and use of the
Formulation, whether or not patentable or copyrightable, which is recorded,
developed, conceived of, created or reduced to practice during the performance of
the Work Plan during the Term. Improvements will not include anything conducted
outside the Work Plan even though conducted during the Term.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Incotec License Agreement</B>&#148; means that Non-Exclusive License Agreement
dated February&nbsp;14, 2003 by and between Landec Ag and Incotec International, BV.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Joint Improvement</B>&#148; means any and all Improvements created or
conceived jointly by (a)&nbsp;Monsanto or any one or more of its Affiliates, agents,
employees, subcontractors, Third Parties acting on their behalf or sublicensees and
(b)&nbsp;Landec or any one or more of its Affiliates, agents, employees, subcontractors,
Third Parties acting on their behalf or licensees, <I>provided </I>that either Party or
both Parties may assist with or be involved in reduction to practice, during the
performance of the Work Plan during the Term.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Know-How</B>&#148; means inventions, discoveries, data, information,
processes, methods, techniques, materials, systems, formulations, design,
expertise, technology, or research results, whether or not patentable or
copyrightable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Landec Improvements</B>&#148; means any and all Improvements created or
conceived solely by Landec or any one or more of its Affiliates, agents, employees,
subcontractors, Third Parties acting on their behalf, or licensees, <I>provided </I>that
either Party or both Parties may assist with or be involved in reduction to
practice during the performance of the Work Plan during the Term. All Landec
Improvements relating exclusively to the Field will be solely owned by Landec Ag.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Laws</B>&#148; means laws, statutes, ordinances, rules, regulations, judgments
or decrees administered, promulgated or issued by any Governmental Authority.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Licensed Know-How</B>&#148; means all Know-How developed by or on behalf of or
acquired by, and in the possession or Control of, Landec, including Landec
Improvements, which is necessary or useful to the manufacture, use or sale of
Licensed Products, or otherwise relates to the Licensed Technology, except for any
Know-How relating to the manufacture of Polymer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Licensed Patent Rights</B>&#148; means (a)&nbsp;the Patent Rights referred to in
<U>Exhibit&nbsp;A</U> and <U>Exhibit&nbsp;B</U>, (b)&nbsp;any Patent Rights claiming Landec
Improvements, and (c)&nbsp;Patent Rights maturing from the aforementioned applications
or maturing from applications in any country of the world that claim priority to
any of such applications.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Licensed Product</B>&#148; means Polymer or Formulation that is made using the
Licensed Technology.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Licensed Technology</B>&#148; means the Licensed Know-How, Landec
Improvements, Joint Improvements and Licensed Patent Rights.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Licensed Trademarks</B>&#148; means those marks identified on <U>Exhibit&nbsp;C</U>,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 3 -<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>including all registered, applied for and common law rights thereto and the
goodwill associated therewith, and any foreign equivalent or representation
thereof where Landec has the rights to such mark or acquires the rights to such
mark during the Term.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Major Market Countries</B>&#148; means the United States, Canada, Japan,
Germany, France, United Kingdom of Great Britain and the Netherlands.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Monsanto Improvements</B>&#148; means any and all Improvements created or
conceived solely by Monsanto or any one or more of its Affiliates, agents,
employees, subcontractors, Third Parties acting on their behalf or licensees,
<I>provided </I>that either Party or both Parties may assist with or be involved in
reduction to practice during the performance of the Work Plan during the Term. All
Monsanto Improvements will be solely owned by Monsanto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Patent Rights</B>&#148; means any and all rights under any and all (a)&nbsp;U.S. or
foreign patents, (b)&nbsp;U.S. or foreign patent applications, including without
limitation, all provisional applications, substitutions, continuations,
continuations-in-part, divisional applications, renewals, and all patents granted
thereon, (c)&nbsp;all patents-of-addition, reissues, reexaminations and extensions or
restorations by existing or future extension or restoration mechanisms, including,
without limitation, supplementary protection certificates or he equivalent thereof,
and (d)&nbsp;any other form of government-issued right substantially equivalent to any
of the foregoing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Polymer</B>&#148; means Landec&#146;s temperature-sensitive polymer material.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.25.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Purchase Price</B>&#148; means 120% of Direct Costs, but excluding the costs
of Operating Services paid by Monsanto to Landec Ag pursuant to <U>Section
5.4</U>, relating to the manufacture of Polymer ordered by Monsanto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.26.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Territory</B>&#148; means worldwide.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.27.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Third Party</B>&#148; means any person or entity other than Landec
Corporation, Landec Ag or Monsanto or their respective Affiliates.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.28.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Additional Definitions</B>. Each of the following definitions are found
in the body of this Agreement as indicated:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Section</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;AAA&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.8.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Abandoning Party&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.1.4.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Annual Payment&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Annual Plan and Budget&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Annual Supply Fee&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.4.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Approved First Use&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1.3.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Buy-Out Fee&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 4 -<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="94%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="1" style="border-bottom: 1px solid #000000">Section</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Buy-Out Closing&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Buy-Out Option&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Controlling Party&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.3.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Formulation and Manufacturing Services&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.1.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Formulation License&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;General Administrative Services&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.1.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Held Back Claims&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.1.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Infringement Suit&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Infringer&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.3.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Landec Indemnified Party&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Liability&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.1.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Monsanto Indemnified Party&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.1.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Operating Service(s)&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Performance Claims&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="1" nowrap>&nbsp;10.1.1(b)</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Reduction Amount&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.4.3.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Representatives&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.8.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Research and Development Services&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.1.2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Responsible Party&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.1.4.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Sales and Marketing Services&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.3.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Specifications&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.3.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Stock Purchase Agreement&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Sued Party&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Supply Term&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.1.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Support Services&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Term&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Termination Fee&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Total Relevant Sales&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.3.3.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Trademark Documentation&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1.3.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Work Plan&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.1.2.1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>License Grants and IP Ownership.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>License Grants to Monsanto. </B>Except for the licenses granted by Landec
Ag under the Incotec License Agreement:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Patent and Know-How License. </B>Subject to the terms and conditions of this
Agreement, Landec hereby grants to Monsanto a co-exclusive license under the
Licensed Technology to use, develop, market, distribute, sell, offer for sale,
import and export Licensed Products for use in the Field during the Term in the
Territory.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Formulation License. </B>Subject to the terms and conditions of this Agreement,
Landec hereby grants to Monsanto a co-exclusive license under the Licensed
Technology to make and have made Formulation for use in the Field during the
Term in the Territory (the &#147;<B>Formulation</B></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 5 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>License</B>&#148;). Consistent with <U>Section&nbsp;4.1.2</U>, Monsanto covenants to
Landec that it will not exercise its rights under the Formulation License
before the first anniversary of the Effective Date.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Trademark License. </B>Subject to the terms and conditions of this Agreement,
Landec hereby grants to Monsanto a co-exclusive license to the Licensed
Trademarks for use solely in connection with the marketing, promotion,
distribution and sale of Licensed Products in the Field during the Term in the
Territory.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.3.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Trademark Use. </B>Monsanto may use the Licensed Trademarks in or on
all packaging, labels, promotional materials, marketing literature,
seed tags and other materials in any medium directly or indirectly
relating to the Licensed Products (&#147;<B>Trademark Documentation</B>&#148;). When
using each of the Licensed Trademarks, Monsanto agrees to use a
footnote in substantially the following form: &#091;Licensed Trademark&#093; is
a &#091;registered&#093; trademark of &#091;Landec&#093; once on each piece of Trademark
Documentation. Monsanto will not be required to utilize the Licensed
Trademarks in connection with the Licensed Products and may, at its
option, use other trademarks on the Licensed Products.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.3.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Marking. </B>Any use of a Licensed Trademark will be marked with an
&#147;&#174;&#148; if and when Landec has obtained registrations thereof in the
Territory or portions thereof in which Licensed Products will be
promoted, and will be marked with a &#147;&#153;&#148; for trademarks and
<SUP style="font-size: 85%; vertical-align: text-top">&#147;SM&#148;</SUP> for service marks prior to such registration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.3.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Restrictions. </B>Monsanto agrees that it will not use any Licensed
Trademark: (a)&nbsp;as a corporate name, business name, domain name or trade
name, (b)&nbsp;in a manner that would reasonably be expected to impair
materially the validity, reputation, or distinctiveness of any of the
Licensed Trademarks, or (c)&nbsp;in a manner that would reasonably be
expected to impair materially Landec&#146;s reputation. Monsanto also
agrees that it will not challenge or diminish any of Landec&#146;s rights in
the Licensed Marks during the Term of this Agreement or apply to
register in its name any of the Licensed Trademarks.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.3.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Quality Control. </B>Monsanto agrees that the Licensed Products
bearing any Licensed Trademarks (which may, as deemed appropriate by
Monsanto, be co-branded with Monsanto trademarks) will be sold and
distributed in accordance with all applicable Laws and regulations,
including those Laws and regulations pertaining to the proper use and
designation of the Licensed Trademarks. Monsanto also agrees to (a)
display the</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 6 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>proper form of trademark notice associated with the Licensed
Trademarks and (b)&nbsp;include, on any Licensed Product which bears a
Licensed Trademark, a statement identifying Landec as the owner of
such Licensed Trademark. Monsanto acknowledges and agrees that
Landec is the sole and exclusive owner of all Licensed Trademarks.
All goodwill associated with the Licensed Trademarks arising from
any and all use of the Licensed Trademarks will inure to the sole
benefit of Landec.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.3.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Samples. </B>Monsanto will provide to Landec for inspection all
Trademark Documentation for the first Licensed Product that
incorporates a Licensed Trademark or which will be marketed or
distributed using a Licensed Trademark a reasonable time prior to the
initial sale or distribution of such Licensed Product. Such Trademark
Documentation will be sent to: Dr.&nbsp;Steven Bitler, Landec Corporation,
Vice President, Corporate Technology, 3603 Haven Avenue, Menlo Park, CA
94025. Landec will have the right to make reasonable changes to the
way the Licensed Trademark is used or appears in such Trademark
Documentation, including, without limitation, changes in the color and
font of the mark (the &#147;<B>Approved First Use</B>&#148;). Any required changes will
be provided by Landec to Monsanto within twenty (20)&nbsp;business days of
submission of the Trademark Documentation by Monsanto to Landec.
Monsanto will thereafter provide Trademark Documentation for Licensed
Products to Landec for Landec&#146;s inspection and approval of the use of
the Licensed Trademark only if Monsanto makes material changes to the
Approved First Use. At Landec&#146;s request, Monsanto will reasonably
assist Landec in monitoring the use of the Licensed Trademarks by
conducting an annual review with Landec of Monsanto&#146;s use of the same.
Monsanto will, at all times, comply with any trademark usage guidelines
that may be provided by Landec, <I>provided </I>that, following the Approved
First Use, Landec may not require any changes to any Trademark
Documentation which has been prepared or produced by Monsanto and which
is consistent with the Approved First Use. In the event of
infringement of any of the Licensed Trademarks by any third party,
Monsanto will cooperate and assist Landec in the enforcement of
Landec&#146;s rights therein.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.3.6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Non-Compliance. </B>In the event that Monsanto fails to comply with
the provisions of this <U>Section&nbsp;2.1.3</U>, Landec may give written
notice specifying the failure to comply. Unless Monsanto remedies its
failure to comply within twenty (20)&nbsp;business days after receipt of
such notice, Landec may terminate Monsanto&#146;s rights solely under this
<U>Section&nbsp;2.1.3</U> immediately upon written notice to Monsanto and
Monsanto will cease to use any Licensed</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Trademark in connection with the Licensed Products, provided
however, that Monsanto will have ninety (90)&nbsp;days to sell off any
existing inventory of Licensed Products bearing the Licensed
Trademarks. Termination under this <U>Section&nbsp;2.1.3</U> will not
terminate the licenses under <U>Sections&nbsp;2.1.1</U> and <U>2.1.2</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.1.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Sublicensing</B>. Monsanto may sublicense all or any portion of its rights and
obligations under this Agreement only with the prior written approval of
Landec, which approval will not be unreasonably withheld. Notwithstanding the
foregoing, Monsanto will be free to grant sublicenses to all or any portion of
its rights under this Agreement without Landec&#146;s prior written consent to
authorize its customers to use Formulation made by or on behalf of Monsanto.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>License Grants to Landec.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.2.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In the Field. </B>Subject to the terms and conditions of this Agreement,
Monsanto hereby grants to Landec a non-exclusive, royalty-free license to
exploit the Monsanto Improvements within the Field in the Territory solely to
make and use (but not sell) Licensed Product, provided that Landec may sell
Licensed Product that exploits the Monsanto Improvements at the direction of
Monsanto pursuant to <U>Section&nbsp;5.3.1(b)</U>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.2.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Outside the Field. </B>Subject to the terms and conditions of this Agreement,
Monsanto hereby grants to Landec a non-exclusive license for all rights to use,
develop, make, have made, market, distribute, sell, offer for sale, import,
export and otherwise exploit the Monsanto Improvements outside the Field in the
Territory. Landec will pay a reasonable royalty, as mutually agreed, to
Monsanto on net sales of products for use solely outside the Field, which are
covered by the Monsanto Improvements.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Retained Rights and Ownership.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.3.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Licensed Technology and Licensed Trademarks. </B>Except for the licenses
expressly granted under <U>Section&nbsp;2.1</U>, Landec retains all right, title
and interest in and to the Licensed Technology and Licensed Trademarks and,
subject to <U>Section&nbsp;5.3.1</U>, is free to use the Licensed Technology and
Licensed Trademarks in the Field in the Territory. In addition to the
foregoing, Landec is free to transfer, license, use and otherwise exploit the
Licensed Technology and Licensed Trademarks outside the Field in the Territory.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.3.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Monsanto Improvements. </B>Except for the licenses expressly granted under
<U>Section&nbsp;2.2</U>, Monsanto retains all right, title and interest in and to
the Monsanto Improvements and is free to transfer, license and otherwise
exploit the Monsanto Improvements in the Territory.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 8 -<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.3.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Joint Improvements. </B>Subject to <U>Sections&nbsp;6.1.4</U> and <U>6.1.5</U>, the
Parties are joint owners of any Joint Improvements and will have the right to make, have
made, use, develop, market, distribute, sell, offer for sale, import and
export products covered by the Joint Improvements for use in all fields in
the Territory without any compensation to the other Party. No right or
license is conveyed by this <U>Section&nbsp;2.3.3</U> to any Patent Right other
than those Patent Rights included within the Joint Improvements.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.3.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Disclosure. </B>By the end of each calendar quarter during the Term, Landec will
disclose any material Landec Improvements promptly in writing to Monsanto and
Monsanto will disclose any material Monsanto Improvements promptly in writing
to Landec.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annual Payments and Buy-Out Option.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annual Payments. </B>On January&nbsp;31 of each year from 2007 through 2011,
Monsanto will pay to Landec Ag two million five hundred thousand dollars
($2,500,000) (each, an &#147;<B>Annual Payment</B>&#148;). For the sake of clarity, at the end of
the Term, Monsanto will have paid to Landec Ag the total amount of twelve million,
five hundred thousand dollars ($12,500,000).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Buy-Out Option. </B>At any time during the period starting on the
Effective Date and ending on the fifth anniversary of the Effective Date, Monsanto
has the option to purchase one-hundred percent (100%) of the equity of Landec Ag
(the &#147;<B>Buy-Out Option</B>&#148;) by paying eight million dollars ($8,000,000) (the &#147;<B>Buy-Out
Fee</B>&#148;) to Landec Corporation. Monsanto may exercise the Buy-Out Option by providing
written notice to both Landec Ag and Landec Corporation of its desire to exercise
the Buy-Out Option. Upon Landec Corporation&#146;s receipt of Monsanto&#146;s notice, Landec
Corporation and Monsanto will negotiate and enter into a Stock Purchase Agreement
for the sale of Landec Ag to Monsanto on terms consistent with the provisions of
this Agreement (the &#147;<B>Stock Purchase Agreement</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Long-Term Supply. </B>To assist with Monsanto&#146;s decision to exercise its
Buy-Out Option, after the second anniversary of the Effective Date, the Parties
will use good faith efforts to negotiate and agree upon the margin over Purchase
Price that Monsanto will pay Landec to manufacture and supply Polymer to Monsanto
pursuant to the supply agreement that the Parties will negotiate and enter into
pursuant to <U>Section&nbsp;3.4.3</U> below if Monsanto exercises its Buy-Out Option.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Effects of Buy-Out. </B>If Monsanto elects to exercise its Buy-Out Option,
then the following will occur upon the closing of the Stock Purchase Agreement for
the sale of Landec Ag to Monsanto:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Acceleration of Payments. </B>Monsanto will pay to Landec Corporation any unpaid
Annual Payments or Annual Supply Fees that would have otherwise been paid to
Landec Ag during the Term of this Agreement.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>IP Ownership and Licenses.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.2.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monsanto will own (a)&nbsp;those Licensed Patent Rights that are owned
by Landec Ag, including, without limitation, the Patent Rights listed
on <U>Exhibit&nbsp;B</U> and (b)&nbsp;any Licensed Know-How and Licensed
Trademarks owned by Landec Ag. Any license from Landec Ag to Monsanto
pursuant to <U>Section&nbsp;2.1</U> will terminate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.2.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent any Licensed Patent Rights including, without
limitation, the Patent Rights listed on <U>Exhibit&nbsp;A</U>, or other
items of Licensed Technology are owned by Landec Corporation and not
Landec Ag, Landec Corporation will grant to Monsanto a perpetual,
irrevocable, royalty-free, exclusive license under such Licensed Patent
Rights and other items of Licensed Technology to use, develop, make,
have made, market, distribute, sell, offer for sale, import and export
Licensed Products for use in the Field in the Territory with the right
to sublicense all or any portion of such Licensed Patent Rights for use
in the Field in the Territory.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.2.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent any Licensed Trademarks are owned by Landec
Corporation and not Landec Ag, Landec Corporation will grant to
Monsanto a perpetual, irrevocable, royalty-free, exclusive,
non-transferable license under such Licensed Trademarks for use solely
in connection with the marketing, promotion, distribution and sale of
Licensed Products in the Field in the Territory with the right to
sublicense all or any portion of such Licensed Trademarks for use in
the Field in the Territory.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Supply of Polymer. </B>The Parties&#146; obligations under <U>Section&nbsp;4</U> will
terminate. Landec Corporation and Monsanto will negotiate and enter into a new
supply agreement pursuant to which Monsanto will order and purchase from Landec
its total requirement of Polymer and Landec will manufacture and sell to
Monsanto an amount of Polymer equal to such total requirement during such term,
<I>provided </I>that Landec (a)&nbsp;has the capability to meet Monsanto&#146;s demand, (b)&nbsp;can
manufacture Polymer in accordance with Specifications and (c)&nbsp;can provide
Polymer to Monsanto at a price and on other terms that are competitive to the
prices and other terms offered by other bona fide suppliers. Subject to any
agreements reached during negotiations pursuant to <U>Section&nbsp;3.3</U> above,
when negotiating the new supply agreement, Landec Corporation and Monsanto will
agree upon a price for the Polymer, as well as a supply term. In addition,
this supply agreement will provide that Landec will give priority to Monsanto
over any other customers in allocating its Polymer production capability.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Termination of Other Provisions. </B>This Agreement will terminate in its
entirety and Landec Corporation and Monsanto will have no further obligations under this Agreement, <I>provided</I>, <I>however</I>, that the following
provisions of this Agreement will survive after the closing of the Stock
Purchase Agreement for the sale of Landec Ag to Monsanto: <U>Section
2.2</U> (License Grants to Landec), <U>Section&nbsp;3.4</U> (Effects of
Buy-Out), <U>Section&nbsp;6</U> (Intellectual Property), <U>Section&nbsp;7</U>
(Confidentiality), <U>Section&nbsp;8</U> (Representations, Warranties and
Covenants), and <U>Section&nbsp;11</U> (Miscellaneous Terms).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Failure to Exercise the Buy-Out Option. </B>If Monsanto does not elect to
exercise its Buy-Out Option within the time period described in <U>Section&nbsp;3.2</U>
and does not otherwise terminate the Agreement, then upon expiration of the Term,
Monsanto will be deemed to have terminated this Agreement pursuant to <U>Section
9.2</U> and will pay to Landec Ag the Termination Fee (described in <U>Section
9.2.1</U>) on the last day of the Term.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Undertakings Relating to Buy-Out Option. </B>In order to preserve the
value to Monsanto of the Buy-Out Option, Landec agrees as follows for the period of
time after the Effective Date until (a)&nbsp;immediately prior to the closing of the
Stock Purchase Agreement (the &#147;<B>Buy-Out Closing</B>&#148;) or (b)&nbsp;Monsanto decides not to
exercise its Buy-Out Option:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date of the Buy-Out Closing, all of the Licensed Patent Rights
listed on <U>Exhibit&nbsp;B</U> and Licensed Trademarks owned by Landec Ag will be
owned free and clear of any liens or encumbrances, and will be registered in
the name of Landec Ag.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date of the Buy-Out Closing, with the exception of the Incotec
License Agreement, no third party will hold any licenses or sublicenses to any
of the Licensed Patent Rights or Licensed Trademarks for use in the Field.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landec Ag will not transfer any of its material assets, except for transfers
in the ordinary course of business which will not adversely affect the ability
of Landec Ag to continue its operations; <I>provided </I>that, prior to the date of
the Buy-Out Closing, Landec Ag may transfer all of its remaining cash to Landec
Corporation, including the Annual Payments and Annual Supply Fees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date of the Buy-Out Closing, Landec Ag will be free of any
indebtedness, and its working capital (excluding cash) will be at a level
consistent with similar seasonal periods in its prior fiscal years.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landec Ag will continue to conduct its business in the ordinary course,
except for changes made pursuant to this Agreement, and will maintain its
property in substantially the condition currently existing, normal wear and
tear excepted.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landec Ag will preserve its corporate existence and good standing.</TD>
</TR>

</TABLE>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landec Ag will not change the overall character of its business, operations,
activities or practices except as provided in this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date of the Buy-Out Closing, Landec Ag will release any liens
existing on any of its assets which would adversely affect the value of Landec
Ag to Monsanto in any material respect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as provided in accordance with the Stock Purchase Agreement, Landec
will not permit Landec Ag to issue any additional equity securities of any
class, or any securities convertible into or exchangeable into any of its
equity securities, and will not transfer any of the equity securities of Landec
Ag to any other person (other than a transfer to an Affiliate of Landec which
is expressly subject to the Buy-Out Option and subject to the other conditions
set forth in this <U>Section&nbsp;3.6</U>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landec Ag will not enter into any agreements, or take any other actions,
which would prevent Monsanto from exercising the Buy-Out Option or materially
and adversely affect the value to Monsanto of Landec Ag upon exercise of the
Buy-Out Option.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Supply of Licensed Product.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Supply Agreement.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Polymer. </B>Beginning on the Effective Date, until the end of the Term or such
earlier time as (a)&nbsp;the sale of Landec Ag to Monsanto in accordance with
<U>Section&nbsp;3.2</U> or (b)&nbsp;the early termination of this Agreement in
accordance with <U>Sections&nbsp;9.2</U> or <U>9.3</U> (the &#147;<B>Supply Term</B>&#148;), Landec
will manufacture and supply Polymer to Monsanto. During the Supply Term,
Monsanto will order and purchase from Landec under the terms and conditions
stated in this <U>Section&nbsp;4</U> its total requirement of Polymer and Landec
will, under the terms and conditions stated in this <U>Section&nbsp;4</U>,
manufacture and sell to Monsanto an amount of Polymer equal to such total
requirement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Formulation. </B>For a period of one year from the Effective Date, Monsanto will
order and purchase from Landec under the terms and conditions stated in this
<U>Section&nbsp;4</U> its total requirement of Formulation and Landec will, under
the terms and conditions stated in this <U>Section&nbsp;4</U>, manufacture and sell
to Monsanto an amount of Formulation equal to such total requirement and be
responsible for the coating of seeds. At any time after the first anniversary
of the Effective Date and during the Term, Monsanto has the option to (a)
continue to order Formulation from Landec or (b)&nbsp;take over all manufacturing
and production of Formulation and coating of seeds. The Parties agree that
upon Monsanto&#146;s request and at Monsanto&#146;s sole expense, Landec will assist
Monsanto in the transfer of manufacturing and production of Formulation and
coating of seeds from Landec to</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monsanto in order to allow Monsanto to commence commercial production of
Formulation at any time specified by Monsanto on or after such first
anniversary. If so requested by Monsanto, Landec will sell to Monsanto any
equipment required by Monsanto for such manufacturing and production which
is no longer required by Landec, at a purchase price equal to the fair
market value thereof.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Monsanto&#146;s Responsibilities.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.2.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Forecasts. </B>By the end of each calendar quarter during the Supply Term,
Monsanto will provide a non-binding six (6)&nbsp;month rolling forecast of its
expected requirements for Licensed Product. Within thirty (30)&nbsp;business days
following receipt of each such forecast, Landec will advise Monsanto in writing
whether it has the capability to provide such estimated requirements or, if
not, the amount of Licensed Products it has the capability to provide. Landec
will, in determining its capability to provide Monsanto&#146;s forecasted
requirements, give priority to Monsanto over any other Landec customers. If
Landec does not provide such written advice to Monsanto within such thirty (30)
business day period, Landec will be deemed to have confirmed that it has the
required capability to provide Monsanto&#146;s forecasted amounts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.2.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Purchase Orders. </B>From time to time, Monsanto will issue purchase orders for
Licensed Product. These purchase orders will be binding upon Monsanto at the
time of issue, and will also be binding upon Landec to the extent the amount of
Licensed Product requested in the purchase orders does not exceed Landec&#146;s
capability as referred to in <U>Section&nbsp;4.2.1</U> above. Monsanto will
provide at least sixty (60)&nbsp;days lead time for Licensed Product orders up to a
quantity of 20,000 pounds and a lead time of at least ninety (90)&nbsp;days for
larger Licensed Product orders. Landec will consult with Monsanto if
additional suppliers are required to meet Monsanto&#146;s requirements.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Landec&#146;s Responsibilities.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.3.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Raw Materials. </B>Landec will be responsible for (a)&nbsp;obtaining all raw
materials, ingredients and components required to manufacture and supply
Licensed Product to Monsanto; and (b)&nbsp;supplying all other facilities,
equipment, materials, shipping supplies and personnel necessary to manufacture
and supply Licensed Product, <I>provided</I>, <I>however</I>, that Monsanto will pay for such
costs incurred by Landec through payment of the Purchase Price for Licensed
Product that it orders from Landec in accordance with <U>Section&nbsp;4.4.2</U>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.3.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Specifications. </B>Landec Ag will supply Licensed Product to Monsanto as so
ordered and in accordance with the specifications that are mutually agreed to
by Landec Ag and Monsanto during the Term (the &#147;<B>Specifications</B>&#148;). The Specifications may be modified or updated during the
Supply Term as mutually agreed in writing by the Parties.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.3.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Use of Third Parties. </B>Landec is entitled to use one or more Third Parties to
perform all or any part of the manufacturing of Licensed Product, including,
but not limited to, the sourcing of raw materials, components and other items
used in manufacturing Licensed Product. Landec will be responsible for
ensuring that the performance by such Third Parties complies with the
applicable provisions of this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Payment.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.4.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annual Supply Fee. </B>On January&nbsp;31 of each year from 2007 through 2011,
Monsanto will pay to Landec Ag one hundred thousand dollars ($100,000) (the
&#147;<B>Annual Supply Fee</B>&#148;). For the sake of clarity, at the end of the Supply Term
(or earlier as provided by <U>Section&nbsp;3.4.1</U>), Monsanto will have paid to
Landec Ag the total amount of five hundred thousand dollars ($500,000) in
Annual Supply Fees. In addition, if this Agreement is terminated early in
accordance with <U>Section&nbsp;9.2</U> (or <U>Section&nbsp;9.3</U>, if Landec
terminates for cause), Monsanto will also owe the total amount of five hundred
thousand dollars ($500,000) in Annual Supply Fees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.4.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Purchase Price. </B>During the Supply Term, Monsanto will purchase Licensed
Product from Landec Ag for the Purchase Price. Payment for amounts invoiced by
Landec Ag will be due and payable by Monsanto to Landec Ag within thirty (30)
days after the date of each such invoice.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.4.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Adjustment in Purchase Price.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.4.3.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Increase in Direct Costs. </B>Landec will use Commercially Reasonable
Efforts to avoid increases to its Direct Cost, and will consult with
Monsanto in good faith, in advance, to discuss any anticipated material
increases in Direct Costs and alternatives for avoiding or minimizing
such increases. Subject to the foregoing, to the extent that Landec&#146;s
Direct Costs do increase during the Supply Term, such increase will be
passed through to Monsanto by a corresponding increase in the Purchase
Price.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.4.3.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Decrease in Direct Costs. </B>Landec will use Commercially Reasonable
Efforts, in consultation with Monsanto, to reduce its Direct Costs. To
the extent that Landec&#146;s Direct Costs are reduced during the Supply
Term from the Direct Costs existing on the Effective Date as set forth
on <U>Exhibit&nbsp;D</U> (the &#147;<B>Reduction Amount</B>&#148;), such Reduction Amount
will be allocated 70% to Monsanto and 30% to Landec. For example, if
the Direct Costs of the Polymer were to decrease from $4.00 to $2.00,
the Direct Costs used in the calculation of Purchase Price would be
reduced from $4.00 to $2.60</TD>
</TR>

</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Records and Audit. </B>Landec will maintain complete and accurate records
which are relevant to the determination of the Purchase Price that Monsanto pays
for Polymer under this Agreement. Such records will be open during reasonable
business hours for a period of three (3)&nbsp;years from the creation of individual
records for examination at Monsanto&#146;s expense and not more often than once per year
by an independent certified public accountant selected by Monsanto. Landec&#146;s
records and accounting information will be Confidential Information for purposes of
<U>Section&nbsp;7</U> of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Sole Remedy. </B>Provided that Landec has used Commercially Reasonable
Efforts to manufacture and supply Licensed Product in accordance with the
Specifications, Landec&#146;s sole liability and Monsanto&#146;s sole remedy for any failure
to manufacture and supply Licensed Product pursuant to <U>Section&nbsp;4</U> hereof
will be that Landec will manufacture and supply replacement Licensed Product in
accordance with the Specifications satisfactory to remedy such failure.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Title. </B>All right, title and interest in and to Licensed Product in the
possession or control of Landec will at all times remain the sole property of
Landec until delivery to Monsanto under this Agreement, Ex Works Landec facility,
or such other facility that Landec designates from time to time.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Services. </B>During the Term of this Agreement, Landec will provide to Monsanto Research and
Development Services, Formulation and Manufacturing Services and General Administrative
Services as described in <U>Sections&nbsp;5.1.2</U>, <U>5.1.3</U> and <U>5.1.4</U> below (each,
an &#147;<B>Operating Service</B>&#148;) and Monsanto will provide to Landec certain Support Services and Sales
and Marketing Services as described respectively in <U>Sections&nbsp;5.2</U> and <U>5.3</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Operating Services.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annual Plan and Budget. </B>Landec and Monsanto have agreed upon a financial
plan and budget for Landec Ag for the first year of the Term, which reflects
the budgeted costs of the Operating Services necessary to run the business as
contemplated by the Parties. In connection with the annual review meetings
referred to in <U>Section&nbsp;5.4.1.1</U>, the Parties will review the prior
year&#146;s operations, and prepare and approve an updated financial plan and budget
for the following year (the &#147;<B>Annual Plan and Budget</B>&#148;). The Annual Plan and
Budget will also reflect capital expenditures contemplated to be made by Landec
Ag.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Research &#038; Development Services.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.2.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Work Plan. </B>Landec will perform research, development, formulation,
biological testing and technical support services in connection with
the Licensed Technology within the Field</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(&#147;<B>Research and Development Services</B>&#148;) in accordance with a mutually
approved research and development work plan, which will be
modified, amended and otherwise updated during the Term as mutually
agreed by the Parties (the &#147;<B>Work Plan</B>&#148;). The Parties will create
and mutually agree upon an initial Work Plan within sixty (60)&nbsp;days
after the Effective Date. The initial Work Plan will describe the
Research and Development Services to be performed by Landec and
will reflect without limitation the following key areas: (a)
development of Polymer and Formulation, (b)&nbsp;manufacturing of
Licensed Products, including raw materials, coating processes and
logistics, (c)&nbsp;seed testing needs (both for research and
development and in support of production), (d)&nbsp;process engineering
development and manufacturing support and (e)&nbsp;sales and marketing
efforts. The Parties may update, amend, modify, extend or replace
any Work Plan upon mutual agreement. If the Parties cannot
mutually agree upon the initial Work Plan, any subsequent update,
amendment, modification or extension of the initial Work Plan or
new Work Plan, the Representatives will use good faith efforts
pursuant to <U>Section&nbsp;11.8.1</U> to reach agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.2.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Review Meetings. </B>At least once per calendar quarter when Landec is
performing Research and Development Services pursuant to a Work Plan,
at mutually agreeable times and locations, representatives of the
Parties&#146; research and development teams and business development staff
will meet either in person, by videoconference or by telephone to
discuss the progress and results or outcomes of the Research and
Development Services performed pursuant to the Work Plan and any
necessary modifications, amendments or updates to the Work Plan.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Formulation and Manufacturing Services. </B>In addition to Landec&#146;s
responsibility to supply Licensed Product under the terms of <U>Section&nbsp;4</U>
above, Landec will provide the following services to Monsanto (&#147;<B>Formulation and
Manufacturing Services</B>&#148;): (a)&nbsp;Polymer and Formulation manufacturing support,
(b)&nbsp;seed coating and treatment support, (c)&nbsp;manufacturing scale-up for Polymer,
Formulation and seed coating, (d)&nbsp;testing and analysis associated with
manufacturing Polymer, Formulation and coatings, (e)&nbsp;purchasing of raw
materials, and (f)&nbsp;packaging and engineering support. The cost of Formulation
and Manufacturing Services will include non-labor costs such as supplies,
travel, communications, logistics cost of inventory and storage, and
depreciation on equipment as more fully described in <U>Section&nbsp;5.4.1.4</U>,
as approved in the Annual Plan and Budget. At least once per year during the
Term, Landec agrees to meet and work with representatives from Monsanto&#146;s
manufacturing group to discuss in good faith ways to lower the costs of the Formulation and Manufacturing Services.</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>General Administrative Services. </B>Landec will provide the following services
to Monsanto (&#147;<B>General Administrative Services</B>&#148;) to support Landec Ag&#146;s
activities: (a)&nbsp;administrative, (b)&nbsp;accounting, including payroll, (c)
information technology services and (d)&nbsp;prosecution and maintenance services
for the Licensed Patent Rights and Licensed Trademarks.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Monsanto&#146;s Support Services. </B>Monsanto will provide services to Landec
Ag that are necessary to support Landec Ag&#146;s operations and the production
requested by Monsanto hereunder (&#147;<B>Support Services</B>&#148;), <I>provided </I>that Monsanto will
have the right, after consultation with Landec, to determine the appropriate level
of staffing and resources to be allocated to such services. Subject to the
foregoing, such Support Services will include, without limitation, the following:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>field evaluation of current and new Licensed Products across several
geographies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>logistics support, including sourcing of raw materials, inventory control of
work-in-progress and finished goods, and shipping and distribution services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>environmental and regulatory support of Landec Ag&#146;s lab, plant, polymer
formulation and product activities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>analytical and engineering support.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Sales Agency</B>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.3.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Appointment. </B>As of the Effective Date, Landec Ag designates and appoints
Monsanto to act as its exclusive sales and marketing agent for the limited
purpose of selling Licensed Products to Third Parties for use in the Field in
the Territory; <I>provided </I>that Landec Ag will retain the right to sell Licensed
Products directly under the Incotec License Agreement and to any Third Parties
if (a)&nbsp;a customer requests a direct sale from Landec, (b)&nbsp;Monsanto requests
that Landec make such direct sale, or (c)&nbsp;Monsanto elects, after consultation
with Landec, not to develop and commercialize the Licensed Technology for a
particular application in the Field. During the Term, Landec Ag will not
appoint any Third Party other than Monsanto to act as its sales agent in
respect of Licensed Products for use in the Field.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.3.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Monsanto Responsibilities. </B>Monsanto will be responsible for the sales
program and for generating a marketing program for Licensed Products, including
promotions, promotional activities, press releases and incentive programs
(&#147;<B>Sales and Marketing Services</B>&#148;).</TD>
</TR>

</TABLE>
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</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.3.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Payment for Direct Sales.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.3.3.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Landec makes any direct sale of Licensed Products to Third
Parties pursuant to <U>Section&nbsp;5.3.1</U> above, Landec will provide
written notice of such direct sale to Monsanto within thirty (30)&nbsp;of
such sale. On a quarterly basis, Landec Ag will pay to Monsanto
thirty-five percent (35%) of the gross profit received from any direct
sales to Third Party customers. For the sake of clarity, Landec will
be responsible for the costs of the Polymer used in Licensed Products
sold directly under <U>Section&nbsp;5.3.1</U> above.<U> </U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.3.3.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On or before August&nbsp;31 of every year of the Term, the Parties will
determine the total combined sales of Licensed Products in the Field by
both Monsanto and Landec in the previous year (the &#147;<B>Total Relevant
Sales</B>&#148;). To the extent that Landec&#146;s direct sales of Licensed Products
to Third Parties pursuant to <U>Sections&nbsp;5.3.1(a)</U> and
<U>5.3.1(c)</U> above exceed twenty-five percent (25%) of the Total
Relevant Sales, the Parties will negotiate in good faith how to fairly
apportion between the Parties the costs of Operating Services necessary
to run the business in the following year. For the avoidance of doubt,
direct sales of Licensed Products to Third Parties pursuant to
<U>Section&nbsp;5.3.1(b)</U> above (<I>i.e.</I>, direct sales made upon Monsanto&#146;s
request) will not be included in the calculation of Total Relevant
Sales.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.3.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Preexisting Agreements. </B>Notwithstanding <U>Section&nbsp;5.3.3</U> above, Landec
Ag will not owe any percentage of the gross profit received from direct sales
of Licensed Product to Incotec International, B.V. under the Incotec License
Agreement. The Incotec License Agreement will not be renewed, extended or
otherwise amended without the advance written consent of Monsanto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.3.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Non-Solicitation. </B>Monsanto agrees that during the Term of this Agreement, it
will not, directly or indirectly, hire or attempt to hire any employee of
Landec Corporation, Landec Ag or any of their respective Affiliates or
encourage any such employee to terminate his or her relationship with Landec
Corporation, Landec Ag or any of their respective Affiliates, without the prior
written consent of Landec Corporation, <I>provided </I>that Monsanto may make
employment offers to Landec Ag&#146;s sales and marketing employees.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Costs of Services.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.4.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Operating Services. </B>Monsanto is responsible for paying for all costs of the
Operating Services provided by Landec Ag under this Agreement and detailed in
the Annual Plan and Budget, subject to the following:</TD>
</TR>

</TABLE>
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</TABLE>
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<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.4.1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On an annual basis, representatives of Landec will meet with senior
management representatives of the manufacturing and commercial
divisions of Monsanto to discuss the Annual Plan and Budget, and to
consider how the Operating Services can be conducted in the most
efficient and least costly manner. Such meetings will be scheduled a
sufficient time prior to the commencement of each production season,
which begins on June 1 of every year, to allow for implementation of
any agreed changes to the Annual Plan and Budget.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.4.1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monsanto will be responsible for payment of the first $10,000 of
the annual cost of prosecuting and maintaining the Licensed Patent
Rights and Licensed Trademarks, which will be included in the costs of
the Operating Services. Any excess amount will not be included in the
costs of the Operating Services and will be paid by Landec.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.4.1.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monsanto will not bear any costs of manufacture or production of
Licensed Products for any Third Parties, or for the purchase of raw
materials, or production of Licensed Products, in excess of amounts
reasonably required to fulfill orders submitted by Monsanto pursuant to
<U>Section&nbsp;4.2.2</U>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.4.1.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landec Ag will be responsible for any capital costs of replacing
existing equipment and other existing assets required by Landec Ag for
production of the Licensed Products and otherwise performing its
obligations hereunder, and no capital expenditures related to such
equipment or assets will be included in the costs of the Operating
Services, <I>provided </I>that Landec Ag may account for the depreciation on
such equipment and assets in the costs of Operating Services in
accordance with past practices and United States generally accepted
accounting principles. Any non-routine or special capital expenditures
required as a result of any changes in the Specifications or in the
manner of producing the Licensed Products, which are requested by
Monsanto, will be paid for by Monsanto and recorded on Monsanto&#146;s
books. Any equipment or other assets purchased by such non-routine or
special capital expenditures will be owned by Monsanto. For the
avoidance of doubt, upon termination of this Agreement Monsanto will be
entitled to remove such equipment or other assets from Landec&#146;s
facility and will be responsible for the costs of removing and shipping
any such capital equipment or assets that are installed in Landec&#146;s
facility.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.4.1.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Landec reasonably incurs costs in performing its obligations
hereunder that are not contemplated by the Annual Plan and Budget, the
Parties will discuss such unplanned costs of the</TD>
</TR>

</TABLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operating Services in the calendar quarter after such costs are
incurred by Landec. If Landec used Commercially Reasonable Efforts
in incurring such unplanned costs when providing Operating
Services, Monsanto will not unreasonably withhold its agreement to
pay for such unplanned costs.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.4.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Invoicing and Payment. </B>Landec Ag will invoice Monsanto quarterly for the
costs of Operating Services and payments for such invoiced amounts will be due
and payable by Monsanto to Landec Ag within thirty (30)&nbsp;days after the date of
each such invoice.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.4.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Other Services. </B>Monsanto is also responsible for the costs it incurs in
providing Support Services or Sales and Marketing Services.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Records and Audit. </B>Landec will maintain complete and accurate records
which are relevant to the determination of the cost of the Operating Services
provided by Landec to Monsanto under this Agreement. Such records will be open
during reasonable business hours for a period of three (3)&nbsp;years from the creation
of individual records for examination at Monsanto&#146;s expense and not more often than
once per year by an independent certified public accountant selected by Monsanto.
Landec&#146;s records and accounting information will be Confidential Information for
purposes of <U>Section&nbsp;7</U> of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Workforce. </B>It is the current intention of the Parties that until the
first anniversary of the Effective Date, there will be no reduction in Landec Ag&#146;s
employee workforce.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Intellectual Property.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Filing, Prosecution and Maintenance of Patent Rights.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Licensed Patent Rights. </B>Landec, through counsel of its choosing, will have
primary responsibility for and control over obtaining, prosecuting (including
any interferences, reissue proceedings and re-examinations), and maintaining
throughout the world the Licensed Patent Rights in the Major Market Countries.
In this regard, Landec will (a)&nbsp;file and prosecute patent applications to
secure Patent Rights for the Licensed Patent Rights in the Major Market
Countries, and (b)&nbsp;upon issuance, maintain such patents in full force in the
Major Market Countries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Monsanto Improvements. </B>Monsanto, through counsel of its choosing, will have
primary responsibility for and control over obtaining, prosecuting (including
any interferences, reissue proceedings and re-examinations), and maintaining
throughout the world Patent Rights in Monsanto Improvements. In this regard,
Monsanto will (a)&nbsp;file and prosecute patent applications to secure Patent
Rights for the Monsanto Improvements in such countries in the Territory as
determined by Monsanto in its sole discretion and (b)&nbsp;upon issuance, maintain
such</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>patents in full force in such countries. Monsanto will pay for the costs
and expenses of prosecuting and maintaining Patent Rights in the Monsanto
Improvements.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Joint Improvements. </B>Landec, through counsel reasonably acceptable to both
Parties, will have primary responsibility for obtaining, prosecuting (including
any interferences, reissue proceedings and re-examinations), and maintaining
throughout the world any Patent Rights in Joint Improvements. In this regard,
Landec will (a)&nbsp;file and prosecute patent applications to secure Patent Rights
for the Joint Improvements in such countries in the Territory as mutually
determined by Landec and Monsanto, (b)&nbsp;upon issuance, maintain such patents in
full force in such countries and (c)&nbsp;keep Monsanto fully informed of all
matters relating to prosecution of Patent Rights in Joint Improvements.
Subject to <U>Section&nbsp;6.1.4</U> and <U>6.1.5</U> below, Landec and Monsanto
will share equally the external expenses associated with the prosecution and
maintenance of Patent Rights in the Joint Improvements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Election not to Continue Prosecution; Abandonment.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.4.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Step-In Rights. </B>If a Party with primary responsibility for
prosecuting and maintaining certain Patent Rights (<I>i.e.</I>, Landec Ag for
Licensed Patent Rights and Patent Rights in Joint Improvements and
Monsanto for Patent Rights in Monsanto Improvements) (the &#147;<B>Responsible
Party</B>&#148;) elects (a)&nbsp;not to file and prosecute such Patent Rights in any
Major Market Country or any other country of the Territory, as
applicable or (b)&nbsp;not to continue the prosecution (including any
interferences, oppositions, reissue proceedings and re-examinations) or
maintenance of a Patent Right in a particular country in the Territory
(the &#147;<B>Disinterested Party</B>&#148;), then the Disinterested Party will so
notify the other Party promptly in writing of its intention in good
time to enable the other Party to meet any deadlines by which an action
must be taken to establish or preserve any such rights in such patent
in such country. The Disinterested Party will permit the other Party,
should the other Party choose to do so, at the other sole Party&#146;s
expense, to file for, or continue to prosecute, maintain or enforce, or
otherwise pursue such Patent Rights in such country and the
Disinterested Party will reasonably cooperate with the other Party in
regard thereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.4.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Ownership. </B>(a)&nbsp;If the Disinterested Party is Landec, and Monsanto
steps-in as the Responsible Party for prosecuting and maintaining the
Licensed Patent Rights or Patent Rights in Joint Improvements, Landec
agrees to assign to Monsanto all of its rights, title and interest in
and to such Patent Rights. (b)&nbsp;If the</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Disinterested Party is Monsanto, and Landec steps-in as the
Responsible Party for prosecuting and maintaining the Patent Rights
in the Monsanto Improvements, Monsanto agrees to assign to Landec
all of its rights, title and interest in and to such Patent Rights.
(c)&nbsp;Both Parties agree to execute and deliver such instruments and
do such acts and things, including the filing of such assignments,
agreements, documents and instruments, as may be necessary to carry
out the assignments in clauses (a)&nbsp;and (b)&nbsp;above.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Patent Coverage in the Territory.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.5.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Broadening Coverage. </B>If Monsanto wants to expand patent coverage
of the Licensed Patent Rights or Patent Rights in either Landec
Improvements or Joint Improvements, or Landec wants to expand patent
coverage of the Patent Rights in the Monsanto Improvements with respect
to other countries in the Territory, the Parties will reasonably
discuss taking such action. If the Responsible Party refuses to expand
the patent coverage in the Territory as desired by the other Party, the
Responsible Party will be considered an Disinterested Party with
respect to such country and the terms of <U>Section&nbsp;6.1.4</U> will
apply.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.5.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Narrowing Coverage. </B>Monsanto or Landec has the right to refuse to
share the costs and expenses of the prosecution and maintenance of the
Patent Rights in Joint Improvements. In the event that either Party is
not interested in assuming the costs and expenses of the prosecution
and maintenance of the Patent Rights in Joint Improvements, such Party
will assign to the other Party all of its rights, title and interest in
and to the Patent Rights in Joint Improvements for which it does not
share such costs in accordance with <U>Section&nbsp;6.1.3</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Communication. </B>The Responsible Party will provide the other Party with
copies of all official correspondence (including, but not limited to,
applications, office actions, responses, etc.) relating to prosecution and
maintenance of the any Patent Rights under this Agreement. The other Party may
provide comments with respect to actions to be taken by the Responsible Party.
The Responsible Party will give good faith consideration to the other Party&#146;s
comments, but it will be within the Responsible Party&#146;s reasonable discretion
whether to incorporate such comments into any prosecution response relating to
such Patent Rights. In order to facilitate each Party&#146;s rights to comment, the
Responsible Party will provide copies of all such official correspondence and
any proposed responses by such Responsible Party at least thirty (30)&nbsp;business
days prior to any filing or response deadlines and the other Party will provide
any comments promptly and in sufficient time to allow Responsible
Party to meet applicable filing requirements. In no event will a Responsible
Party be required to delay any submission, filing or response.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Cooperation; Information Disclosure. </B>Each Party will, and will cause its
Affiliates to, cooperate fully in the preparation, filing, prosecution and
maintenance of Patent Rights, including without limitation, (a)&nbsp;promptly
disclosing and making available to the other Party all material information it
Controls after it first develops, learns or first appreciates the significance
of such information that is reasonably necessary for such other Party to
perform its obligations under this <U>Section&nbsp;6</U>, and (b)&nbsp;executing all
papers and instruments so as to enable the other Party to perform its
obligations under this <U>Section&nbsp;6</U>. Each Party will provide to the other
Party prompt notice as to all matters which come to its attention and which may
affect the preparation, filing, prosecution or maintenance of any Patent
Rights.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Filing, Prosecution and Maintenance of Licensed Trademarks. </B>Landec,
through counsel of its choosing, will have primary responsibility for and control
over obtaining, prosecuting and maintaining throughout the world the Licensed
Trademarks. In the event that Monsanto wants to market Licensed Products in a
country in the Territory in which Landec does not own a Licensed Trademark, the
Parties will reasonably discuss filing for a Licensed Trademark in such country.
If, after discussions, Landec does not file for a trademark in such country,
Monsanto, at its sole expense, will have the right to do so on behalf of Landec.
Any trademark obtained by Monsanto pursuant to this <U>Section&nbsp;6.2</U> will be
owned by Landec, but considered a Licensed Trademark pursuant to which Monsanto has
a license under <U>Section&nbsp;2.1.3</U>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Enforcement of Patent Rights.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.3.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Notification. </B>Each Party will promptly report in writing to the other Party
during the Term any known infringement or suspected infringement of any of the
Licensed Patent Rights, Patent Rights in Landec Improvements, Monsanto
Improvements or Joint Improvements, or Licensed Trademarks by a Third Party (an
&#147;<B>Infringer</B>&#148;), and will provide the other Party with all available evidence
supporting said infringement or suspected infringement, including without
limitation, the identity of the Infringer and the alleged infringement
complained of.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.3.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Enforcement Within the Field. </B>The Responsible Party (<I>i.e.</I>, Landec Ag for
Licensed Patent Rights, Patent Rights in Landec Improvements and Joint
Improvements and Licensed Trademarks and Monsanto for Patent Rights in Monsanto
Improvements) will have the first right, but not the obligation, to take any
reasonable measures it deems appropriate to stop such infringing activities by
an Infringer in any part of the Territory, including initiating or prosecuting
an infringement or other appropriate suit or action against such Infringer. In
the event the Responsible Party elects not to take action pursuant to this
<U>Section&nbsp;6.3.2</U>, the Responsible</TD>
</TR>

</TABLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Party will so notify the other Party promptly in writing of its intention in
good time to enable the other Party to meet any deadlines by which an action
must be taken to establish or preserve any enforcement rights and such other
Party will have the right to take any such reasonable measures to stop such
infringing activities by such Infringer. The Responsible Party will fully
cooperate with the other Party in the event that the Responsible Party
decides not to bring an infringement action. Such cooperation will include
being a named party in any action brought by the other Party</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.3.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Procedures. </B>Each Party will give the other Party sufficient advance notice
of its intent to file any suit pursuant to <U>Sections&nbsp;6.3.2</U> and the
reasons therefore and each Party will provide the other Party with an
opportunity to make suggestions and comments regarding such filings, <I>provided</I>,
<I>however</I>, that the commenting Party will provide any such comments promptly and
sufficiently in advance of any filing dates to allow for consideration by the
Party filing the suit (the &#147;<B>Controlling Party</B>&#148;), and <I>further provided </I>that it
will be within the Controlling Party&#146;s reasonable discretion whether to
incorporate such suggestions or comments. The Parties will keep each other
reasonably and timely informed of the status and progress of the litigation,
including without limitation, furnishing copies of communications, pleadings,
and other documents and keeping each Party informed of settlement efforts, and
will obtain suggestions and strategy from the other Party, including during
pre-trial motions and discovery, <I>provided</I>, <I>however</I>, that it will be within the
Controlling Party&#146;s reasonable discretion whether to incorporate such
suggestions or comments, but <I>further provided </I>that the Controlling Party will
not enter into any settlement without the prior written consent of the other
Party (which consent will not unreasonably be withheld) if such settlement
includes a finding or agreement that any Patent Right is invalid or
unenforceable. The Controlling Party will have the sole and exclusive right to
select counsel for any such suit and action and will pay all expenses of the
suit, including, but not limited to, attorneys&#146; fees and court costs. Upon
reasonable request by the Controlling Party, the other Party will give the
Controlling Party all reasonable information and assistance in connection with
such suit for infringement, including allowing the Controlling Party access to
its files and documents and to its personnel who may have possession of
relevant information and, if necessary, for the Controlling Party to prosecute
any legal action, joining in the legal action as a party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.3.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Recovery. </B>Any amounts recovered by either Party pursuant to <U>Section
6.3.2</U>, whether by settlement or judgment, will be used to reimburse the
Parties for their reasonable costs and expenses (including attorneys fees)
incurred in making such recovery (which amounts will be allocated pro rata if
insufficient to cover the totality of such expenses), with any remainder being
paid to the Controlling Party. The Controlling Party pursuing any action under
<U>Section&nbsp;6.3.2</U> will bear all payments awarded against or agreed to be paid by such Party pursuant to such action,
including any costs or expenses incurred that exceed the amounts recovered
by such Party.</TD>
</TR>


</TABLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.3.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Declaratory Judgments. </B>Each Party will provide the other Party with
immediate written notice of any declaratory judgment action or other claim or
action brought by a Third Party in the Territory that alleges the invalidity,
unenforceability or noninfringement of any Licensed Patent Right or any Patent
Right in Landec Improvements, Monsanto Improvements or Joint Improvements. The
Responsible Party will have the first right, but not the obligation, at its own
expense, to defend the Patent Rights in any such declaratory judgment action.
The Responsible Party will notify the other Party within fifteen (15)&nbsp;business
days of receiving written notice of such declaratory judgment action as to
whether it intends to defend such declaratory judgment action (or if
appropriate such lesser period as is necessary so as to give the other Party a
reasonable period in which to respond to such declaratory judgment action).
If, after the expiration of such period, the Responsible Party has not notified
the other Party of its intent to defend such declaratory judgment action, then
the other Party will have the right, but not the obligation, to defend such
declaratory judgment action, <I>provided </I>that the Responsible Party will fully
cooperate with the other Party in the event that the Responsible Party decides
not to defend such declaratory judgment action. Furthermore, the Responsible
Party will bear all the expenses of such litigation. Neither Party will
consent to the entry of any judgment or enter into any settlement with respect
to such declaratory judgment action without the prior written consent of the
other Party (which consent will not unreasonably be withheld) if such judgment
or settlement includes a finding or agreement that any Patent Right is invalid
or unenforceable, or would enjoin or grant other equitable relief against the
other Party. Each Party will cooperate (including by executing any documents
required to enable the other Party to participate in such litigation) with the
other Party in the defense of any declaratory judgment action brought by a
Third Party relating to the Patent Rights in accordance with this<U> Section
6.3.5</U> and will have the right to consult with the other Party and to
participate in and be represented by independent counsel in such litigation at
its own expense.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Defense of Third Party Infringement Action</B>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.4.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Notice. </B>In the event of any actual or threatened suit against a Party or the
Affiliates or sublicensees of a Party (the &#147;<B>Sued Party</B>&#148;) alleging that
commercialization of the Licensed Products in the Territory infringes or will
infringe such Third Party&#146;s Patent Rights (an &#147;<B>Infringement Suit</B>&#148;), the Sued
Party will promptly give written notice of such Infringement Suit to the other
Party.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 25 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.4.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Landec&#146;s Right to Defend. </B>Landec will have the
first right, but not the obligation, through counsel reasonably acceptable to Monsanto, to assume
direction and control of the defense of claims arising from the practice of
technology covered by the Licensed Patent Rights or Patent Rights in Landec
Improvements and Joint Improvements, including the right to settle such
claims, <I>provided </I>that (i)&nbsp;Landec will obtain the prior written consent of
Monsanto to settle such claims, and (ii)&nbsp;to the extent Monsanto is a named
party to the Infringement Suit, Monsanto may, upon written notice to Landec,
assume at Monsanto&#146;s cost its own defense of any claims against Monsanto in
such suit, in which event Landec will have no authority to act on Monsanto&#146;s
behalf with respect to the defense of such claims.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.4.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Monsanto&#146;s Right to Defend. </B>Monsanto will have the first right, but not the
obligation, through counsel reasonably acceptable to Landec, to assume
direction and control of the defense of claims arising from the practice of
Monsanto Improvements, including the right to settle such claims, <I>provided </I>that
(i)&nbsp;Monsanto will obtain the prior written consent of Landec (which consent
will not unreasonably be withheld) if such settlement includes a finding or
agreement that any Patent Right in a Monsanto Improvement is invalid or
unenforceable or otherwise adversely affects Landec, and (ii)&nbsp;to the extent
Landec is a named party to the Infringement Suit, Landec may, upon written
notice to Monsanto, assume at Landec&#146;s cost its own defense of any claims
against Landec in such suit, in which event Monsanto will have no authority to
act on Landec&#146;s behalf with respect to the defense of such claims.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.4.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Cooperation and Communication. </B>Upon the other Party&#146;s request and at the
other Party&#146;s expense, each Party will offer reasonable assistance in
connection with the defense of an Infringement Suit. Each Party will keep the
other Party reasonably and timely informed of the status and progress of the
litigation and will provide the other Party with the opportunity to make
suggestions and comments regarding such defense, <I>provided</I>, <I>however</I>, that the
other Party will provide any such comments sufficiently in advance of any
filing dates to allow for consideration by Party responsible for defending the
Infringement Suit, and <I>further provided </I>that it will be within such responsible
Party&#146;s reasonable discretion whether to incorporate such suggestions or
comments. If a Party notifies the other Party in writing that it does not wish
to assume direction and control of defending an Infringement Suit pursuant to
either <U>Section&nbsp;6.4.2</U> or <U>6.4.3</U>, the other Party will have the
right, but not the obligation to, at its sole cost and expense, to defend
against such claims, <I>provided</I>, <I>however</I>, that such Party will obtain the written
consent of the other Party prior to ceasing to defend, settling or otherwise
compromising such claims.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Patent Term Restoration</B>. The Parties hereto will cooperate with each
other in obtaining patent term restoration in the Territory where applicable to the
Licensed Patent Rights related to any Licensed Product, including under 35</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 26 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S.C. &#167; 156. If elections with respect to obtaining such patent term
restoration are to be made, Landec will make such election and Monsanto will
abide by such election.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Confidentiality.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Confidential Information</B>. Each Party will treat as confidential all
Confidential Information of the other Party, will not use such Confidential
Information except as set forth in this Agreement, and will use its best efforts
not to disclose such Confidential Information to any Third Party. Without limiting
the foregoing, each of the Parties will use at least the same degree of care which
it uses to prevent the disclosure of its own Confidential Information of like
importance to prevent the disclosure of Confidential Information disclosed to it by
the other Party under this Agreement. Each Party will disclose Confidential
Information of the other Party only to its directors, officers, employees,
consultants and advisors who have a need to know such information in order for such
Party to carry out the activities and transactions contemplated by this Agreement.
Each Party will promptly notify the other Party of any actual or suspected misuse
or unauthorized disclosure of the other Party&#146;s Confidential Information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exceptions</B>. Notwithstanding the above, neither Party will have
liability to the other with regard to any Confidential Information of the other
which the receiving Party can prove:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.2.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>was generally available to the public or otherwise part of the public domain
at the time of its disclosure to the receiving Party;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.2.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>became generally available to the public or otherwise part of the public
domain after its disclosure or development, as the case may be, other than
through any act or omission of the receiving Party;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.2.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>was known by the receiving Party, without restriction, at the time of
disclosure by the disclosing party and the receiving party has documentary
evidence to that effect;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.2.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>was disclosed to the receiving Party, without restriction, by a Third Party
who had no obligation to the disclosing Party not to disclose such information
to others; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.2.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>was independently discovered or developed by or on behalf of the receiving
Party without the use of any Confidential Information belonging to the
disclosing Party and the receiving Party has documentary evidence to that
effect.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Authorized Disclosure and Use.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.3.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Disclosure</B>. Notwithstanding the foregoing provisions
of <U>Section&nbsp;7.1</U>, each Party may disclose Confidential Information belonging to the other
Party to the extent such disclosure is reasonably necessary to:</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 27 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.3.1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>file or prosecute patent applications as contemplated by this
Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.3.1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prosecute or defend litigation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="13%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.3.1.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>comply with applicable Laws and regulations.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.3.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Advanced Notice. </B>In the event a Party will deem it reasonably necessary to
disclose Confidential Information belonging to the other Party pursuant to
<U>Section&nbsp;7.3.1</U> above, the disclosing Party will to the extent possible
give reasonable advance notice of such disclosure to the other Party and take
reasonable measures to ensure confidential treatment of such information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.3.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Use</B>. Notwithstanding the foregoing provisions of <U>Section&nbsp;7.1</U>, each
Party will have the right to use the other Party&#146;s Confidential Information in
carrying out its responsibilities or exercising its rights under this
Agreement, or as otherwise expressly authorized by this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SEC Filings and Other Disclosures. </B>Either Party may disclose the terms
of this Agreement (a)&nbsp;to the extent required, in the reasonable opinion of such
Party&#146;s legal counsel, to comply with applicable Laws, including, without
limitation, the rules and regulations promulgated by the United States Securities
and Exchange Commission and (b)&nbsp;in connection with a prospective acquisition,
merger, financing or license for such Party, to prospective acquirers or merger
candidates or to existing or potential investors or licensees, <I>provided </I>that prior
to such disclosure each such candidate or investor will be agree in writing to be
bound by obligations of confidentiality and non-use at least equivalent in scope to
those set forth in this <U>Section&nbsp;7</U>. If a Party discloses this Agreement or
any of the terms hereof in accordance with <U>Section&nbsp;7.4(a)</U>, such Party
agrees, at its own expense, to seek confidential treatment of portions of this
Agreement or such terms, as may be reasonably requested by the other Party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Public Announcements. </B>The Parties agree that either Party may make a
public announcement regarding this Agreement or concerning the subject of this
Agreement, <I>provided </I>that the other Party has a chance to review and comment prior
to the release of such public announcement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Representations, Warranties and Covenants.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Representations, Warranties and Covenants of Each Party</B>. Each of the
Parties represents, warrants, and covenants to the other Parties as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is a corporation or entity duly organized and validly existing under the
laws of the state or other jurisdiction of its incorporation or formation.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 28 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The execution, delivery and performance of this Agreement by such Party has
been duly authorized by all requisite corporate action and does not require any
shareholder action or approval.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It has the power and authority to execute and deliver this Agreement and to
perform its obligations hereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The execution, delivery and performance by such Party of this Agreement and
its compliance with the terms and provisions hereof does not and will not
conflict with or result in a breach of any of the terms and provisions of or
constitute a default under (i)&nbsp;the provisions of its charter or operative
documents or bylaws; (ii)&nbsp;any order, writ, injunction or decree of any court or
governmental authority entered against it or by which any of its property is
bound; or (iii)&nbsp;any applicable law, rule, regulation or permit.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It will at all times comply with all material laws and regulations applicable
to its activities under this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Additional Representations, Warranties of Landec. </B>In addition to the
representations, warranties and covenants made by Landec elsewhere in this
Agreement, Landec hereby represents, warrants, and covenants to Monsanto that:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.2.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Landec solely owns all right, title and interest in the Licensed Technology
or otherwise has the right to grant the licenses granted hereunder and that
<U>Exhibits A</U> and <U>B</U> are, to the best of Landec&#146;s knowledge,
complete and accurate as of the Effective Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.2.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the Effective Date, the Licensed Patent Rights are existing and, to the
best of Landec&#146;s knowledge, are not invalid or unenforceable, in whole or in
part.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.2.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the best of Landec&#146;s knowledge, the practice of the Licensed Technology
and the commercialization of any Licensed Product in the Field do not and will
not infringe any issued patents or other intellectual property rights owned or
possessed by any Third Party, and Landec has not received any charge,
complaint, demand or notice alleging such infringement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Representation by Legal Counsel</B>. Each Party hereto represents that it
has been represented by legal counsel in connection with this Agreement and
acknowledges that it has participated in the drafting hereof. In interpreting and
applying the terms and provisions of this Agreement, the Parties agree that no
presumption will exist or be implied against the Party which drafted such terms and
provisions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Inconsistent Agreements</B>. No Party has in effect and after the
Effective Date no Party will enter into any oral or written agreement or
arrangement that is or would be inconsistent with its obligations under this Agreement.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 29 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Warranty Disclaimer. </B>THE FOREGOING WARRANTIES OF LANDEC ARE IN LIEU OF
ANY OTHER WARRANTIES, AND THE LICENSED TECHNOLOGY, POLYMER AND FORMULATION ARE
PROVIDED TO MONSANTO &#147;AS IS&#148; AND WITHOUT ANY WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY
OR ANY IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, ALL OF WHICH ARE
HEREBY SPECIFICALLY EXCLUDED AND DISCLAIMED.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Term and Termination</B>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Term. </B>If not earlier terminated as provided in this <U>Section&nbsp;9</U>,
the term of this Agreement (the &#147;<B>Term</B>&#148;) will be the five (5)&nbsp;year period commencing
on the Effective Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Termination by Monsanto. </B>Monsanto may terminate this Agreement at any
time during the Term, <I>provided </I>that Monsanto complies with the following
conditions:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.2.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Termination Fee. </B>At the time of termination, Monsanto will pay four million
dollars ($4,000,000) (the <B>&#147;Termination Fee</B>&#148;) to Landec Ag; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.2.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annual Payments and Annual Supply Fees. </B>Notwithstanding termination of this
Agreement, Monsanto will continue to owe any remaining Annual Payments and
Annual Supply Fees in accordance with the payment schedules set forth in
<U>Sections&nbsp;3.1</U> and <U>4.4.1</U>, respectively, <I>provided</I>, <I>however</I>, that
Monsanto, at its election, may accelerate the payment schedules and pay to
Landec Ag the total remaining Annual Payments and Annual Supply Fees upon the
date of termination of this Agreement, and will accelerate such payment
schedules upon exercise of the Buy-Out Option in accordance with <U>Section
3.4.1</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Termination for Cause. </B>Either Party may terminate this Agreement at
any time during the Term by giving written notice to the other Party in the event
that the other Party commits a material breach of its obligations under this
Agreement and such breach remains uncured for sixty (60)&nbsp;days, measured from the
date written notice by certified carrier or equivalent of such breach is given to
the breaching Party, <I>provided</I>, <I>however</I>, that if such breach is not susceptible of
cure within the stated period and the breaching Party uses diligent, good faith
efforts to cure such breach, the stated period will be extended by an additional
sixty (60)&nbsp;days. If the alleged breach relates to nonpayment of any amount due
under this Agreement, the sixty (60)&nbsp;day cure period will be tolled pending
resolution of any bona fide dispute between the Parties as to whether such payment
is due. If Landec terminates this</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 30 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Agreement under this <U>Section&nbsp;9.3</U> due to Monsanto&#146;s uncured material
breach, then on the date of termination, Monsanto will owe the Termination Fee
and any remaining Annual Payments or Annual Supply Fees that would have been
paid by Monsanto had this Agreement not been terminated by Landec under this
<U>Section&nbsp;9.3</U>. If Monsanto terminates this Agreement under this
<U>Section&nbsp;9.3</U> due to Landec&#146;s uncured material breach, then Monsanto will
not be required to pay any Termination Fee or any remaining Annual Payments or
Annual Supply Fees. Any dispute over what constitutes an uncured material
breach by a Party will be resolved pursuant to the dispute resolution mechanisms
under <U>Section&nbsp;11.8</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Effects of Termination.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.4.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon termination of this Agreement under <U>Section&nbsp;9.2</U> or <U>9.3</U>,
all rights and licenses granted by Landec to Monsanto hereunder will
automatically terminate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.4.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as expressly provided herein, the termination of this Agreement will
not relieve the Parties of any obligation accruing prior to termination. Any
and all Confidential Information and materials provided pursuant to this
Agreement will be promptly returned to the disclosing party or destroyed at the
written request of the disclosing party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.4.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon termination of this Agreement for any reason, all sublicenses granted by
Monsanto will terminate, although both Monsanto and its sublicensees may, after
termination, sell Licensed Product in inventory at the time of termination.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Survival of Certain Obligations. </B>The following provisions of this
Agreement will survive the termination of the Agreement: <U>Section&nbsp;2.2</U>
(License Grants to Landec), <U>Section&nbsp;6</U> (Intellectual Property), <U>Section
7</U> (Confidentiality), <U>Section&nbsp;8</U> (Representations, Warranties and
Covenants, <U>Section&nbsp;9.4</U> (Effects of Termination), <U>Section&nbsp;9.5</U> and
<U>Section&nbsp;11</U> (Miscellaneous Terms). Any expiration or early termination of
this Agreement will be without prejudice to the rights of either Party against the
other accrued or accruing under this Agreement before termination.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Indemnification.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Indemnification by Landec.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to <U>Section&nbsp;10.3</U> below, until the end of the Term or such
earlier time as (a)&nbsp;the sale of Landec Ag to Monsanto in accordance with
<U>Section&nbsp;3.2</U> or (b)&nbsp;the early termination of this Agreement in
accordance with <U>Sections&nbsp;9.2</U> or <U>9.3</U>, Landec will indemnify,
defend and hold harmless Monsanto and its directors, officers, employees and
agents (each, a &#147;<B>Monsanto Indemnified Party</B>&#148;) from and against any and all
liability, loss, damage, expense (including reasonable attorneys&#146; fees and
expenses)</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 31 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and cost (collectively, a &#147;<B>Liability</B>&#148;) that a Monsanto Indemnified Party may
be required to pay to one or more Third Parties resulting from or arising
out of:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(a) any claims of any nature by Third Parties to the extent arising out of
the actual or alleged infringement or violation of any Third Party right by
exploitation of the Licensed Technology in the manner contemplated by this
Agreement; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(b) any claims (or series of related claims) by Third Parties relating to or
arising out of any alleged failure of, or deficiency in the Formulation
performance (&#147;<B>Performance Claims</B>&#148;), subject to the limitations of
<U>Section&nbsp;10.1.2</U> below; <I>provided </I>that Landec will only be responsible
for indemnification under this <U>Section&nbsp;10.1.1(b)</U> if (i)&nbsp;such
Performance Claims relate to Licensed Product sold by Monsanto during the
first year of the Term and (ii)&nbsp;when Monsanto sold Licensed Product to the
Third Party making the Performance Claim, Monsanto used the same contractual
limitation of liability and warranty disclaimer language as used by Landec
when Landec sold Licensed Product prior to the Effective Date, the form of
which appears on <U>Exhibit&nbsp;E</U>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(c) the material breach by Landec of any of its representations, warranties
or covenants set forth herein, except, in each case, to the extent caused by
the gross negligence or willful misconduct of Monsanto or any Monsanto
Indemnified Party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding <U>Section&nbsp;10.1.1</U>, Landec&#146;s obligations under
<U>Section&nbsp;10.1</U> will not apply to any Liability to the extent it arises
out of:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(a) specifications provided by Monsanto that are prepared without
collaboration with Landec;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(b) modifications of any Licensed Technology at the request of Monsanto,
which are not covered by Landec Improvements, or that materially alter the
form or functionality thereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(c) any claims of any nature by Third Parties to the extent arising out of
the actual or alleged infringement or violation of any Third Party right by
Monsanto&#146;s exploitation of the Monsanto Improvements; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(d) combinations of any of the Licensed Technology by Monsanto with any
product not provided by Landec, <I>provided </I>that such combination materially
alters the form or function of the Licensed Technology or that such
Liability arises out of or relates to the use of such non-Landec product
(clauses (a), (b), (c), and (d)&nbsp;are herein collectively referred to as &#147;<B>Held
Back Claims</B>&#148;).</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 32 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Indemnification by Monsanto. </B>Subject to <U>Section&nbsp;10.3</U> below,
until the end of the Term or such earlier time as (a)&nbsp;the sale of Landec Ag to Monsanto in
accordance with <U>Section&nbsp;3.2</U> or (b)&nbsp;the early termination of this
Agreement in accordance with <U>Sections&nbsp;9.2</U> or <U>9.3</U>, Monsanto will
indemnify, defend and hold harmless Landec and their respective directors,
officers, employees and agents (each, a &#147;<B>Landec Indemnified Party</B>&#148;) from and
against all Liabilities that a Landec Indemnified Party may be required to pay
to one or more Third Parties resulting from or arising out of:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 14%">(a)&nbsp;any Held Back Claim; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 14%">(b)&nbsp;any claims of any nature by Third Parties to the extent arising out of
any Licensed Product sold by Monsanto, except to the extent that Monsanto is
entitled to indemnification from Landec under <U>Section&nbsp;10.1</U> above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 14%">(c)&nbsp;the material breach by Monsanto of any of its representations,
warranties or covenants set forth herein, except, in each case, to the
extent caused by the gross negligence or willful misconduct of Landec or any
Landec Indemnified Party.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Conditions to Indemnification. </B>In any claim for defense or
indemnification hereunder, the indemnified party must (a)&nbsp;give the indemnifying
party prompt written notice of the applicable claim; (b)&nbsp;reasonably cooperate with
the indemnifying party at the indemnifying party&#146;s request and expense, in the
defense or settlement of the claim; and (c)&nbsp;give the indemnifying party the right
to control the defense or settlement of the claim, except that the indemnifying
party will not enter into any settlement that adversely affects the indemnified
party&#146;s rights or obligations without the indemnified party&#146;s proper express
written consent, which will not be unreasonably withheld or delayed. The
indemnified party may participate in the defense or settlement of any such claim at
its own expense with counsel of its choosing. Notwithstanding the foregoing, any
failure of the indemnified party to comply with the provisions of this <U>Section
10.3</U> will not relieve the indemnifying party of any defense or indemnity
obligations hereunder except to the extent that the indemnifying party is
prejudiced by such failure.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Limitations of Indemnification.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.4.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Limitation of Obligations and Liability. </B>Notwithstanding anything to the
contrary, neither Landec nor Monsanto will be obligated to indemnify the other
Party pursuant to <U>Sections&nbsp;10.1</U> or <U>10.2</U> above unless and until
the total amount of losses incurred by the other Party exceeds two hundred and
fifty thousand dollars ($250,000) (the &#147;<B>Threshold</B>&#148;) in the aggregate, at which
time the indemnifying party will be responsible for all losses and not just
those losses in excess of the Threshold. In no event will either Landec or
Monsanto be liable under this Agreement for any amounts aggregating in excess
of five million dollars ($5,000,000) (the &#147;<B>Cap</B>&#148;),</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>provided</I>, <I>however</I>, that (a)&nbsp;the Cap will not apply to any payments owed by
Monsanto to Landec pursuant to this Agreement and (b)&nbsp;neither the Threshold
nor the Cap will apply to Landec&#146;s indemnification obligations under
<U>Section&nbsp;10.1.1(b)</U> to the extent there are Performance Claims during
the first year of the Term.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.4.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Incidental and Consequential Damages. </B>NO PARTY WILL BE LIABLE UNDER ANY
CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR
ANY PUNITIVE, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR OTHER INDIRECT DAMAGES
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ITS SUBJECT MATTER,
EXCEPT IN CONNECTION WITH A BREACH OF <U>SECTION 7</U> ABOVE OR FOR LIABILITY
ARISING OUT OF A PARTY EXCEEDING THE SCOPE OF ANY LICENSE GRANTED TO SUCH PARTY
HEREUNDER.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Sole Remedy. </B>The indemnification obligations under this <U>Section
10</U> will be the indemnifying Party&#146;s sole obligation and the indemnified Party&#146;s
sole remedy with respect to any breach of <U>Section&nbsp;8</U> or other event giving
rise to indemnification hereunder.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Miscellaneous Terms.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>General Payment Terms.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.1.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Currency. </B>All amounts payable and calculations hereunder will be in United
States dollars.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.1.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Wire Transfer. </B>All payments by Monsanto to under this Agreement will be by
wire transfer of immediately available funds in U.S. dollars to the bank
account(s) designated in writing by Landec.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.1.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Late Payments. </B>If any payment due under this Agreement, including, without
limitation, Annual Payments under <U>Section&nbsp;3.1</U>, Annual Supply Fees under
<U>Section&nbsp;4.4.1</U><I>, </I>invoiced amounts for the supply of Polymer under
<U>Section&nbsp;4.4.2</U>, or invoiced amounts for Operating Services under
<U>Section&nbsp;5.4.1</U>, is overdue by more than thirty (30)&nbsp;days, Monsanto will
pay interest on such overdue amount at an annual percentage rate equal to the
Prime Rate (as published in the &#147;Money Rates&#148; table of The Wall Street Journal
on the due date) plus five percent (5%).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Assignment. </B>Neither this Agreement nor any interest hereunder will be
assignable by either Party without the prior written consent of the other Party,
which consent will not be unreasonably withheld or delayed. Notwithstanding the
foregoing, a Party may make such an assignment without the other Party&#146;s consent to
Affiliates or to a successor to substantially all of the business of such Party to
which this Agreement relates, whether pursuant to a merger, sale</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 34 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>of stock, sale of assets or other transaction. This Agreement will be binding
upon the successors and permitted assigns of the Parties and the name of a Party
appearing herein will be deemed to include the names of such Party&#146;s successors
and permitted assigns to the extent necessary to carry out the intent of this
Agreement. Any assignment not in accordance with this <U>Section&nbsp;11.2</U> will
be null and void.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Amendment. </B>No amendment, modification or supplement of any provision
of this Agreement will be valid or effective unless made in writing and signed by a
duly authorized officer of each Party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Waiver. </B>No provision of the Agreement will be waived by any act,
omission or knowledge of a Party or its agents or employees except by an instrument
in writing expressly waiving such provision and signed by a duly authorized officer
of the waiving Party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Governing Law and Jurisdiction. </B>This Agreement, the rights of the
Parties and all claims arising under or in connection herewith, will be governed by
and interpreted in accordance with the domestic substantive laws of the State of
New York, without regard to any choice or conflict of law principles that would
cause the application of the laws of any other jurisdiction, and will be subject to
the exclusive jurisdiction of the State and Federal Courts located in New York, New
York.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>UN Convention on Contracts for Sale of Goods. </B>The parties expressly
agree that the United Nations Convention on Contracts for the International Sale of
Goods will not apply to this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Bankruptcy. </B>The Parties agree that the licenses granted hereunder are
subject to Section 365(n) of the U.S. Bankruptcy Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Dispute Resolution. </B>Any disputes, other than disputes regarding the
construction, validity or enforcement of patents (which disputes will be resolved
by legal proceedings to be held subject to the requirements of <U>Section
11.5</U> (Governing Law and Jurisdiction)), arising between the Parties relating
to, arising out of or in any way connected with this Agreement or any term or
condition hereof, or the performance by either Party of its obligations hereunder,
whether before or after termination of this Agreement, will be resolved as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.8.1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Senior Management. </B>Within sixty (60)&nbsp;days after the request of any Party
that reasonably believes the Parties have been unable to resolve a matter, the
chief executive officer of Landec Corporation and the Executive Vice President
&#150; North America Commercial of Monsanto (or their designees) (the
&#147;<B>Representatives</B>&#148;), will meet in person at a mutually acceptable time and
location or by means of telephone or video conference to attempt to resolve the
matter or negotiate a settlement.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 35 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.8.2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Arbitration</B>. If the Representatives are not able to resolve the dispute
within thirty (30)&nbsp;days of their first meeting or within such extended period
as they agree upon, either Party may submit the matter to binding arbitration
in accordance with this <U>Section&nbsp;11.8.2</U>. Except as specified below, the
arbitration will be conducted in accordance with the rules of, and under the
auspices of, the American Arbitration Association (the &#147;<U><B>AAA</B></U>&#148;). The
arbitration will be conducted by a single arbitrator with relevant technical
expertise who is jointly selected by the Parties or, if the Parties cannot
mutually agree, is selected by the AAA administrator and is not employed by and
does not have a material financial relationship with, a Party or any of its
Affiliates or sublicensees. The location of the arbitration will be in New
York, New York. This Agreement will remain in effect pending completion of the
proceedings brought under this <U>Section&nbsp;11.8.2</U>. Within ten (10)
business days after the arbitrator is selected, each Party will submit to the
arbitrator that Party&#146;s proposed resolution of the dispute and justification
therefor. All arbitration proceedings must be completed within thirty (30)
days after the arbitration is convened. The Parties hereby agree that the
arbitrator has authority to issue rulings and orders regarding all procedural
and evidentiary matters that the arbitrator deems reasonable and necessary with
or without petition therefor by the Parties as well as the final ruling and
judgment. Rulings will be issued by written order summarizing the arbitration
proceedings. Any judgment or award by the arbitrator in any dispute will have
the same force and effect as the final judgment of a court of competent
jurisdiction. Nothing in this arbitration clause will prevent either Party
from seeking a pre-award attachment of assets or preliminary relief to enforce
its rights in intellectual property or confidentiality obligations under this
Agreement, or to enjoin any event that might cause irreparable injury, in a
court of competent jurisdiction prior to an award on the merits by the
arbitrator.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Descriptive Headings. </B>The descriptive headings of this Agreement are
for convenience only and will be of no force or effect in construing or
interpreting any of the provisions of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Notices. </B>Any consent, notice or report required or permitted to be given or made
under this Agreement by one of the Parties hereto to the other will be in writing
and delivered by hand or sent by nationally recognized overnight delivery service,
prepaid registered or certified air mail, or by facsimile confirmed by prepaid,
registered or certified mail letter, and will be deemed to have been properly
served to the addressee upon receipt of such written communication, in any event to
the following addresses:</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 36 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Landec Corporation, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">3603 Haven Avenue<BR>
Menlo Park, CA 94025<BR>
Attention: Chief Financial Officer<BR>
Phone: (650)&nbsp;306-1650<BR>
Fax: (650)&nbsp;368-9818
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Landec Ag, to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">Natarajan Balachander, Ph.D.<BR>
Vice President, Research and Manufacturing<BR>
201 N. Michigan<BR>
Oxford, Indiana 47971<BR>
Phone: (765)&nbsp;385-1000 ext. 101<BR>
Fax: (765)&nbsp;385-0598
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a copy to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">Ropes &#038; Gray LLP<BR>
One Embarcadero Center Suite&nbsp;2200<BR>
San Francisco, CA 94111-3627<BR>
Boston, MA 02110<BR>
Attn: Geoff Leonard, Esq.<BR>
Phone: 415-315-6300<BR>
Fax: 415-315-6350
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Monsanto, to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">Monsanto Company<BR>
800 N. Lindbergh Boulevard<BR>
St. Louis, Missouri 63167<BR>
Telephone: (314)&nbsp;694-1000<BR>
Telecopier: (314)&nbsp;694-6399<BR>
Attn: Vice President &#151; Manufacturing
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With copy to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">Monsanto Company<BR>
800 N. Lindbergh Boulevard<BR>
St. Louis, Missouri 63167<BR>
Telephone: (314)&nbsp;694-1000<BR>
Telecopier: (314)&nbsp;694-6399<BR>
Attn: General Counsel&#146;s Office
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With an additional copy to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 6pt">Bryan Cave LLP<BR>
One Metropolitan Square<BR>
211 N. Broadway, Suite&nbsp;3600<BR>
St. Louis, Missouri 63102<BR>
Telephone: (314)&nbsp;259-2455
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 9%; margin-top: 0pt">Telecopier: (314)&nbsp;259-2020<BR>
Attn: Denis P. McCusker
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 37 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Entire Agreement. </B>This Agreement, together with all exhibits hereto, constitutes
and contains the complete, final and exclusive understanding and agreement of the
Parties and cancels and supersedes any and all prior negotiations, correspondence,
understandings and agreements, whether oral or written, between the Parties
respecting the subject matter hereof and thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Force Majeure. </B>Except for obligations to make payments under this Agreement,
neither Party will be liable to the other for delay or failure in the performance
of the obligations on its part contained in this Agreement if and to the extent
that such failure or delay is caused by acts of God, war, terrorism (actual or
threatened), strikes, revolutions, lack or failure of transportation facilities,
Laws or other causes that are beyond the reasonable control of such Party. A Party
will notify the other Party promptly in the event any force majeure event arises,
giving an indication of the likely extent and duration thereof, and will use all
Commercially Reasonable Efforts to resume performance of its obligations as soon as
practicable, <I>provided</I>, <I>however</I>, that neither Party will be required to settle any
labor dispute or disturbance. In the event that a Party&#146;s performance is suspended
for more than six (6)&nbsp;months because of a Force Majeure Event, the Parties hereto
will consult with each other to determine whether this Agreement should be
modified. In no event will this <U>Section&nbsp;11.12</U> serve to extend the Term of
this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Severability. </B>If any clause or portion thereof in this Agreement is for any
reason held to be invalid, illegal or unenforceable, the same will not affect any
other portion of this Agreement, as it is the intent of the Parties that this
Agreement will be construed in such fashion as to maintain its existence, validity
and enforceability to the greatest extent possible. In any such event, this
Agreement will be construed as if such clause of portion thereof had never been
contained in this Agreement, and there will be deemed substituted therefore such
provision as will most nearly carry out the intent of the Parties as expressed in
this Agreement to the fullest extent permitted by applicable law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Implied License. </B>Each Party recognizes that except for the licenses expressly
set forth in this Agreement, nothing in this Agreement will be construed as
granting a license, whether by implication, operation of law or otherwise.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Basis of Bargain. </B>Each Party recognizes and agrees that the warranty disclaimers
and liability and remedy limitations in this Agreement are material bargained for
bases of this Agreement and that they have been taken into account and reflected in
determining the consideration to be given by each Party under this Agreement and in
the decision by each Party to enter into this Agreement.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 38 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Further Actions. </B>Each Party agrees to execute, acknowledge and deliver such
further instruments, and to do all such other acts, as may be necessary or
appropriate in order to carry out the purposes and intent of the Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Independent Contractors. </B>Both Parties are independent contractors under this
Agreement. With the exception of sales and marketing agency relationship created
under <U>Section&nbsp;5.3</U>, nothing herein contained will be deemed to create an
employment, agency, joint venture or partnership relationship between the Parties
hereto or any of their agents or employees, or any other legal arrangement that
would impose liability upon one Party for the act or failure to act of the other
Party. With the exception of sales and marketing agency relationship created under
<U>Section&nbsp;5.3</U>, neither Party will have any express or implied power to enter
into any contracts or commitments or to incur any liabilities in the name of, or on
behalf of, the other Party, or to bind the other Party in any respect whatsoever.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Counterparts. </B>This Agreement may be executed in any number of counterparts
(including by facsimile or electronic transmission), each of which need not contain
the signature of more than one Party, but all such counterparts taken together will
constitute one and the same agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;Signature page follows.&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 39 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives as of the date first set forth above.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>Landec Corporation</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>Monsanto Company</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Gary T. Steele
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Michael DeMarco</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Signature)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Signature)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Gary T. Steele
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Michael DeMarco&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorized Person</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>Landec Ag, Inc.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Thomas Crowley</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Signature)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Thomas Crowley</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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