EXHIBIT 10.1

FORM OF

CHANGE-OF-CONTROL

EMPLOYMENT SECURITY AGREEMENT

AGREEMENT, by and between Monsanto Company, a Delaware corporation (the “Company”), and ______________ (the “Executive”), dated as of the ______ day of ___________________, 20__ (this “Agreement”).

The Board of Directors of the Company (the “Board”), has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change of Control. The Board believes it is imperative to diminish the inevitable distraction of the Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive’s full attention and dedication to the Company currently and in the event of any threatened or pending Change of Control, and to provide the Executive with compensation and benefits arrangements upon a Change of Control that ensure that the compensation and benefits expectations of the Executive will be satisfied and that are competitive with those of other corporations. Therefore, in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.              Effect of Agreement . (a) Unless and until there occurs, during the Term of this Agreement, either a Change of Control or a termination of the Executive’s employment in anticipation of a Change of Control as contemplated by Section 3(d), (1) Sections 2, 3 and 4 of this Agreement shall have no effect and shall not give rise to any rights of the Executive, (2) the Executive’s employment shall be “at will,” except as may be otherwise provided in any Employment Agreement, and (3) upon any termination of the Executive’s employment, the Executive shall have no further rights under this Agreement. This Agreement, upon its execution, supersedes the Prior Change-of-Control Employment Security Agreement, as amended.

(b)             From and after the first date during the Term of this Agreement on which a Change of Control occurs, this Agreement shall supersede any Employment Agreements, but shall have no effect on any Other Agreement or Other Plan, except as specifically provided in Section 5; provided, that any confidentiality and non-competition provisions in any employment agreement shall continue in full force and effect.

2.              Terms of Employment . This Section 2 sets forth the terms and conditions on which the Company agrees to employ the Executive during the period (the “Protected Period”) beginning on the first day during the Term of this Agreement on which a Change of Control occurs and ending on the second anniversary of that date, or such earlier date as the Executive’s employment terminates as contemplated by Section 3.

(a) Position and Duties . (1) During the Protected Period, (A) the Executive’s position (including status, offices, titles and reporting requirements), authority, duties and responsibilities shall be at least commensurate in all material respects with the most significant of those held, exercised and assigned to the Executive at any time during the 120-day period immediately preceding the date of the Change of Control, (B) the Executive’s services shall be performed at the office where the Executive was employed immediately preceding the date of the Change of Control or any office or location less than 35 miles from such office, unless the Executive is on international assignment on the date of the Change of Control and is relocated as a result of the Executive’s being repatriated pursuant to the terms of the

Executive’s international assignment agreement as in effect before the date of the Change of Control, and (C) the Executive shall not be required to travel on Company business to a substantially greater extent than required immediately before the Change of Control.

(2)            During the Protected Period, the Executive agrees to devote reasonable attention and time during normal business hours (except when on authorized vacation, holidays or sick leave) to the business and affairs of the Company, and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities; provided, that the Executive may (A) serve on corporate, civic or charitable boards and committees, (B) deliver lectures, fulfill speaking engagements and teach at educational institutions, and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement; and provided, further , that to the extent that any such activities have been conducted by the Executive before the date of the Change of Control, the continued conduct of such activities or other activities similar in nature and scope thereto after the date of the Change of Control shall not be deemed to interfere with the performance of the Executive’s responsibilities to the Company.

(b)            Compensation . (1) Base Salary . During the Protected Period, the Executive shall receive a base salary (the “Base Salary”), the annual amount of which (the “Annual Base Salary Amount”) shall be at least equal to 12 times the highest monthly base salary paid or payable, including any base salary that has been earned but deferred, to the Executive by the Company and the Affiliated Companies for the 12-month period immediately preceding the date of the Change of Control. The Base Salary shall be paid at such intervals as the Company pays executive salaries generally. During the Protected Period, the Annual Base Salary Amount shall be reviewed for possible increase at least annually, beginning no more than 12 months after the last such annual review prior to the date of the Change of Control. Any increase in the Annual Base Salary Amount shall not serve to limit or reduce any other obligation to the Executive under this Agreement. The Annual Base Salary Amount shall not be reduced after any such increase and the term “Annual Base Salary Amount” shall refer to Annual Base Salary Amount as so increased.

(2)            Bonuses . In addition to the Base Salary, the Executive shall be awarded the following bonuses and incentive compensation. For each fiscal year ending during the Protected Period, the Executive shall be awarded an annual bonus in cash (the “Annual Bonus”) at least equal to the Average Pre-Change-of-Control Annual Bonus, which shall be paid no later than two and one-half months after the end of the fiscal year next following the fiscal year for which the Annual Bonus is awarded. In addition, during the Protected Period, the Executive shall be entitled to participate in all long-term, stock-based and other incentive plans, practices, policies and programs generally applicable to peer executives of the Company and the Affiliated Companies, but in no event shall such plans, practices, policies and programs provide the Executive with incentive opportunities less favorable, in the aggregate, than the most favorable of those provided by the Company and the Affiliated Companies to the Executive under such plans, practices, policies and programs as in effect at any time during the 120-day period immediately preceding the date of the Change of Control, or, if more favorable to the Executive, those generally provided at any time after the date of the Change of Control to peer executives of the Company and the Affiliated Companies.

(3)            Savings and Retirement Plans . During the Protected Period, the Executive shall be entitled to participate in all savings and retirement plans, practices, policies and programs generally applicable to peer executives of the Company and the Affiliated Companies, but in no event shall such plans, practices, policies and programs provide the Executive with savings opportunities and retirement

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benefit opportunities, in each case, less favorable, in the aggregate, than the most favorable of those provided by the Company and the Affiliated Companies to the Executive under such plans, practices, policies and programs as in effect at any time during the 120-day period immediately preceding the date of the Change of Control, or, if more favorable to the Executive, those generally provided at any time after the date of the Change of Control to peer executives of the Company and the Affiliated Companies. Without limiting the generality of the foregoing, the Company and the Affiliated Companies shall continue to honor any Individual SERP.

(4)            Welfare Benefit Plans . During the Protected Period, the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and the Affiliated Companies (including without limitation medical, prescription drug, dental, vision, disability, life insurance, accidental death and dismemberment, and travel accident insurance plans and programs) to the extent generally applicable to peer executives of the Company and the Affiliated Companies, but in no event shall such plans, practices, policies and programs provide the Executive with benefits that are less favorable, in the aggregate, than the most favorable of such plans, practices, policies and programs in effect for the Executive at any time during the 120-day period immediately preceding the date of the Change of Control, or, if more favorable to the Executive, those generally provided at any time after the date of the Change of Control to peer executives of the Company and the Affiliated Companies.

(5)            Expenses . During the Protected Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the most favorable policies, practices and procedures of the Company and the Affiliated Companies in effect for the Executive at any time during the 120-day period immediately preceding the date of the Change of Control, or, if more favorable to the Executive, as in effect generally at any time after the date of the Change of Control with respect to peer executives of the Company and the Affiliated Companies.

(6)            Vacation . During the Protected Period, the Executive shall be entitled to paid vacation in accordance with the most favorable plans, policies, programs and practices of the Company and the Affiliated Companies as in effect for the Executive at any time during the 120-day period immediately preceding the date of the Change of Control, or, if more favorable to the Executive, as in effect generally at any time after the date of the Change of Control with respect to peer executives of the Company and the Affiliated Companies.

3.              Termination of Employment . (a) Death or Disability . The Executive’s employment shall terminate automatically if the Executive dies during the Protected Period. If the Company determines in good faith that the Disability of the Executive has occurred during the Protected Period, it may give to the Executive written notice in accordance with Section 10(b) of its intention to terminate the Executive’s employment. In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive, provided that the Executive shall not have returned to full-time performance of the Executive’s duties before such day.

(b)            By the Company . The Company may terminate the Executive’s employment during the Protected Period for Cause or without Cause. The termination of the Executive’s employment shall not be deemed to be for Cause, unless and until (1) the Executive has been given the opportunity, on reasonable advance notice, to be heard before the Board, together with counsel to the Executive, and (2) there shall have been delivered to the Executive a copy of a resolution thereafter duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board (excluding the Executive, if the Executive is a member of the Board), finding that, in the good faith opinion of the

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Board, the Executive is guilty of conduct constituting Cause, and specifying the particulars thereof in detail.

(c)            By the Executive . The Executive may terminate employment during the Protected Period for Good Reason or without Good Reason. The termination of the Executive’s employment by the Executive shall not be deemed to be for “Good Reason” unless (1) the Executive gives notice to the Company of the existence of the event or condition constituting “Good Reason” within 90 days after such event or condition initially occurs or exists, (2) the Company fails to cure such event or condition within 30 days after receiving such notice, and (3) the Executive’s “separation from service” within the meaning of Section 409A of the Code occurs not later than the last day of the Protected Period and, in all events, not later than two years after such event or condition initially occurs or exists.

(d)            Termination in Anticipation of a Change of Control . Anything in this Agreement to the contrary notwithstanding, if (1) a Change of Control occurs, (2) the Executive’s employment with the Company is terminated by the Company before the Change of Control occurs in a manner and under circumstances that would be considered a termination by the Company without Cause if it had occurred during the Protected Period, and (3) it is reasonably demonstrated by the Executive that such termination of employment was at the request of a third party that had taken steps reasonably calculated to effect the Change of Control or otherwise arose in connection with or in anticipation of the Change of Control, then such termination shall be treated for all purposes of this Agreement as a termination by the Company without Cause during the Protected Period.

(e)            Notice, Date and Effect of Termination . Any termination of the Executive’s employment by the Company pursuant to Section 3(b) or the Executive pursuant to Section 3(c) shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 10(b), after satisfaction of the procedural requirements of Section 3(b) or 3(c) to the extent applicable. The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder, or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing their respective rights hereunder. If the Executive’s employment is terminated by the Company for Cause or by the Executive for Good Reason or without Good Reason, the termination shall be effective as of the date of receipt of the Notice of Termination or any later date specified in the Notice of Termination (but not later than 30 days after the giving of such notice), as the case may be. If the Executive’s employment is terminated by the Company other than for Cause or Disability, the termination shall be effective as of the date on which the Company notifies the Executive of such termination. The Company and the Executive shall take all steps necessary (including with regard to any post-termination services by the Executive) to ensure that any termination described in this Section 3(e) constitutes a “separation from service” within the meaning of Section 409A of the Code, and the date on which such separation from service takes place shall be the “Date of Termination.”

4.              Obligations of the Company upon Termination . (a)   Other than for Cause, Death or Disability; Good Reason . If, during the Protected Period, the Company terminates the Executive’s employment other than for Cause or Disability or the Executive terminates employment for Good Reason, and the Executive executes and delivers to the Company a release substantially in the form attached hereto as Exhibit A (a “Release”) not later than the Release Deadline, the Company shall make the payments and provide the benefits described below.

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(1)            The Company shall pay to the Executive, in a lump sum in cash within 30 days after the Date of Termination, or if later, within 5 days after the Executive executes the Release, the aggregate of the following amounts:

(A)           the sum of the following amounts, to the extent not previously paid to the Executive (the “Accrued Obligations”): (i) the Base Salary through the Date of Termination; (ii) a pro rata portion of the Annual Bonus for the year in which the Date of Termination occurs, computed as the product of (x) the Average Pre-Change-of-Control Annual Bonus, and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365; and (iii) any accrued pay in lieu of unused vacation; and

(B)           the product of (i) [three/two] and (ii) the sum of (x) the Annual Base Salary Amount, (y) the Average Pre-Change-of-Control Annual Bonus, and (z) the amount of the employer matching contributions made or credited to the Executive’s accounts in the Savings Plans for the most recent plan year that ended before the date of the Change of Control or, if higher, for the most recent plan year that ended after the date of the Change of Control (in either case annualized to the extent such plan year consisted of less than 12 months and/or the Executive was not eligible to participate in such Savings Plan for the full plan year).

(2)            All benefits accrued through the Date of Termination by the Executive under the Retirement Plan, the SERP and any Individual SERP that are not vested as of the Date of Termination shall be vested in full and paid in accordance with the terms of the applicable plan; provided, that to the extent such benefits may not be provided under the Retirement Plan, they shall instead be provided under the SERP. The Company shall also pay to the Executive, in a lump sum in cash within 30 days after the Date of Termination, or if later, within 5 days after the Executive executes the Release, an amount equal to the excess of (i) the aggregate benefit under the Retirement Plan, the SERP and any Individual SERP that the Executive would have accrued (whether or not vested) if the Executive’s employment had continued for the Severance Period, based on the assumption that the Executive’s compensation during the Severance Period was that required by Sections 2(b)(1) and 2(b)(2), over (ii) the actual vested benefit, if any, of the Executive under the Retirement Plan, the SERP and any Individual SERP (including any benefits that vest pursuant to the preceding sentence), in each case, determined as a single lump sum benefit amount as of the Date of Termination, on an actuarial present value basis, using actuarial assumptions no less favorable to the Executive than the most favorable of those in effect for purposes of computing benefit entitlements under the Retirement Plan and the SERP at any time from the day before the date of the Change of Control.

(3)            For the Severance Period, the Company shall continue Specified Welfare Benefits to the Executive and/or the Executive’s family; provided, that if the Executive becomes reemployed with another employer and is eligible to receive medical, dental, prescription drug and vision benefits under another employer-provided plan during the Severance Period, the comparable Specified Welfare Benefits shall be secondary to those provided under such other plan while the Executive is so eligible; and provided, further, that the medical, dental, prescription drug and vision benefits provided during the Severance Period shall be provided in such a manner that such benefits (and the costs and premiums thereof) are excluded from the Executive’s income for federal income tax purposes.

(4)            For purposes of determining the Executive’s eligibility for Retiree Welfare Benefits, the Executive shall be considered to have remained employed until the end of the Severance Period and to have retired on the last day of such period, and, if the Executive has reached age 50 as of

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the Date of Termination, then the Executive shall be entitled to receive, beginning at the end of the Severance Period, retiree medical benefits at least as favorable as those to which the Executive would have been entitled if the Executive had retired with eligibility for the Retiree Welfare Benefits in effect as of the date of the Change of Control.

(5)            The Company shall provide the Executive with outplacement services, in accordance with its normal practice for its most senior executives, as in effect before the date of the Change of Control, from the outplacement firm or firms with which the Company has contracted as of the Date of Termination or thereafter; provided, that to the extent such outplacement services begin before the Executive executes the Release, they shall end as of the Release Deadline if the Executive fails to execute and deliver the Release to the Company by the Release Deadline; and provided, further , that in any event such outplacement services shall not be provided beyond the end of the second calendar year after the calendar year in which the Date of Termination occurs.

(6)            To the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any Other Benefits.

(b)            Death . If the Executive’s employment is terminated because of the Executive’s death during the Protected Period, the Company shall pay the Accrued Obligations to the Executive’s estate or beneficiaries, as applicable, in a lump sum in cash within 30 days of the Date of Termination, shall timely pay or deliver any of the Other Benefits, and shall have no other severance obligations under this Agreement. For purposes of this Section 4(b), the term “Other Benefits” shall include without limitation, and the Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to the most favorable benefits provided by the Company and the Affiliated Companies to the estates and beneficiaries of peer executives of the Company and the Affiliated Companies under such plans, programs, practices and policies relating to death benefits, if any, as in effect with respect to other peer executives and their beneficiaries at any time during the 120-day period immediately preceding the date of the Change of Control, or, if more favorable to the Executive’s estate and/or the Executive’s beneficiaries, as in effect at any time after the date of the Change of Control generally with respect to peer executives of the Company and the Affiliated Companies and their beneficiaries.

(c)            Disability . If the Executive’s employment is terminated because of the Executive’s Disability during the Protected Period, the Company shall pay the Accrued Obligations to the Executive in a lump sum in cash within 30 days of the Date of Termination, shall timely pay or deliver any Other Benefits, and shall have no other severance obligations under this Agreement. For purposes of this Section 4(c), the term “Other Benefits” shall include, without limitation, and the Executive shall be entitled to receive, disability and other benefits at least equal to the most favorable of those generally provided by the Company and the Affiliated Companies to disabled executives and/or their families in accordance with such plans, programs, practices and policies relating to disability, if any, as in effect generally with respect to peer executives and their families at any time during the 120-day period immediately preceding the date of the Change of Control, or, if more favorable to the Executive and/or the Executive’s family, as in effect at any time after the date of the Change of Control generally with respect to peer executives of the Company and the Affiliated Companies and their families.

(d)            Cause; Other than for Good Reason . If the Executive’s employment is terminated for Cause during the Protected Period, the Company shall provide to the Executive the Base Salary through the Date of Termination and any Other Benefits, in each case, to the extent theretofore unpaid, and shall have no other severance obligations under this Agreement. If the Executive voluntarily terminates employment during the Protected Period, other than for Good Reason, the Company shall pay the Accrued Obligations to the Executive in a lump sum in cash within 30 days of the Date of

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Termination, shall timely pay or deliver any Other Benefits, and shall have no other severance obligations under this Agreement.

5.              Non-exclusivity of Rights . Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any Other Plan for which the Executive may qualify, nor shall anything herein limit or otherwise affect such rights as the Executive may have under any Other Agreement. Amounts that are vested benefits or that the Executive is otherwise entitled to receive under any Other Plan or any Other Agreement shall be payable in accordance with such Other Plan or Other Agreement, except as explicitly modified by this Agreement. Notwithstanding the foregoing, if the Executive receives payments and benefits pursuant to Section 4(a), the Executive shall not be treated as having any additional years of service or age for purposes of any Other Plan or Other Agreement by virtue of receiving such payments and benefits, unless such Other Plan or Other Agreement specifically so provides.

6.              Full Settlement; Legal Fees . The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action that the Company or any Affiliated Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, and, except as specifically provided in Section 4(a)(2), such amounts shall not be reduced, regardless of whether the Executive obtains other employment. The Company agrees to pay as incurred, within 10 days following the Company’s receipt of an invoice from the Executive, to the full extent permitted by law, all legal fees and expenses that the Executive may reasonably incur, at any time from the date of this Agreement through the Executive’s remaining lifetime or, if longer, through the 20 ^th anniversary of the date of the Change of Control, as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (whether such contest is between the Company and the Executive or between either of them and any third party, and including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus, in each case, interest on any delayed payment at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, that the Executive shall have submitted an invoice for such fees and expenses at least 10 days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred; and provided , further , that the Company shall not be required to pay any fees or expenses charged by any accounting or consulting firm to perform calculations or make determinations required to be carried out by the Accounting Firm pursuant to Section 7. The amount of such legal fees and expenses that the Company is obligated to pay in any given calendar year shall not affect the legal fees and expenses that the Company is obligated to pay in any other calendar year, and the Executive’s right to have the Company pay such legal fees and expenses may not be liquidated or exchanged for any other benefit.

7.              Certain Additional Payments by the Company . (a) If any Payment is subject to the Excise Tax, then the Company shall pay the Executive a Gross-Up Payment (regardless of whether the Executive’s employment has terminated). Notwithstanding the foregoing, if the Parachute Value of all Payments does not exceed 110% of the Safe Harbor Amount, then the Company shall not pay the Executive a Gross-Up Payment, and the Payments due under this Agreement shall be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount; provided, that if even after all Payments due hereunder are reduced to zero, the Parachute Value of all Payments would still exceed the Safe Harbor Amount, then the Gross-Up Payment shall be made and no reduction of any Payments shall be made. The reduction of the Payments due hereunder, if applicable, shall be made by first reducing the payments under Section 4(a)(1)(B), unless an alternative method of reduction is elected

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by the Executive, and in any event shall be made in such a manner as to maximize the economic present value of all Payments actually made to the Executive, determined by the Accounting Firm as of the date of the change of control for purposes of Section 280G of the Code using the discount rate required by Section 280G(d)(4) of the Code.

(b)            All determinations required to be made under this Section 7, including whether and when Gross-Up Payments are required and the amount of such Gross-Up Payments, whether and in what manner any Payments are to be reduced pursuant to the second sentence of Section 7(a), and the assumptions to be utilized in arriving at such determinations, shall be made by the Accounting Firm, and shall be binding upon the Company and the Executive, except to the extent the Internal Revenue Service or a court of competent jurisdiction makes a final and binding determination inconsistent therewith. The Accounting Firm shall provide detailed supporting calculations both to the Company and the Executive within 15 business days after receiving notice from the Executive that there has been a Payment or such earlier time as may be requested by the Company. Any Gross-Up Payment that becomes due pursuant to this Section 7 shall be paid by the Company to the Executive within five days of the receipt of the Accounting Firm’s determination, or, if later, at least 20 business days before the Executive is obligated to pay the related Excise Tax. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Company should have been made (an “Underpayment”). In the event the Accounting Firm determines that there has been an Underpayment or the Executive is required to make a payment of any Excise Tax as a result of a claim described in Section 7(c), then the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive.

(c)            The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of a Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than 10 business days after the Executive is informed in writing of such claim. The Executive shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that the Company desires to contest such claim, the Executive shall:

provided, however , that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest, and shall indemnify and hold the Executive harmless, on an After-Tax basis, for any Excise Tax or Taxes imposed as a result of such

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representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 7(c), the Company shall control all proceedings taken in connection with such contest, and, at its sole discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either direct the Executive to pay the Taxes claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however , that, if the Company directs the Executive to pay such claim and sue for a refund, the Company shall remit the amount of such payment to the Executive or to the appropriate taxing authority on behalf of the Executive, and shall indemnify and hold the Executive harmless, on an After-Tax basis, from any Excise Tax or Taxes imposed with respect to such advance or with respect to any imputed income in connection with such advance; and provided, further , that any extension of the relevant statute of limitations is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which the Gross-Up Payment would be payable hereunder, and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.

(d)            If, at any time after receiving a Gross-Up Payment or after the Company has remitted an amount pursuant to Section 7(c), the Executive receives any refund of the associated Excise Tax, the Executive shall (subject to the Company’s having complied with the requirements of Section 7(c), if applicable) promptly pay to the Company the amount of such refund, together with any interest paid or credited thereon net of all Taxes applicable thereto. If, after the Company has remitted an amount pursuant to Section 7(c), a determination is made that the Executive is not entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then the Executive shall not be required to pay such amount to the Company, and any Gross-Up Payment owed to the Executive shall be reduced (but not below zero) by such amount.

(e)            Notwithstanding any other provision of this Section 7, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for the benefit of the Executive, all or any portion of any Gross-Up Payment, and the Executive hereby consents to such withholding. In addition, the Company shall pay all amounts that it is required to pay to or on behalf of the Executive under the foregoing provisions of this Section 7 not later than the end of the calendar year following (1) the calendar year in which the related Taxes are remitted to the applicable taxing authority, or (2) in the case of amounts relating to a claim described in Section 7(c) that does not result in the remittance of any Taxes, the calendar year in which the claim is finally settled or otherwise resolved.

(f) All fees and expenses of the Accounting Firm for services performed pursuant to this Section 7 at any time from the date of this Agreement through the Executive’s remaining lifetime or, if longer, through the 20 ^th anniversary of the date of the Change of Control, shall be borne solely by the Company. The Company shall pay such fees and expenses not later than the end of the calendar year following the calendar year in which the related work is performed or the expenses are incurred by the Accounting Firm. The amount of such fees and expenses that the Company is obligated to pay in any given calendar year shall not affect the fees and expenses that the Company is obligated to pay in any other calendar year, and the Executive’s right to have the Company pay such fees and expenses may not be liquidated or exchanged for any other benefit.

8.              Confidential Information . (a) The Executive shall use the Executive’s best efforts and diligence both during and after employment by the Company and the Affiliated Companies to

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protect the confidential, trade secret and/or proprietary character of all Confidential Information. The Executive shall not, directly or indirectly, use (for the Executive or another) or disclose any Confidential Information, for so long as it shall remain proprietary or protectible as confidential or trade secret information, except as may be necessary for the performance of the Executive’s duties with the Company and the Affiliated Companies. The Executive shall promptly deliver to the Company, at the termination of the Executive’s employment, or at any other time at the Company’s request, without retaining any copies, all documents and other material in the Executive’s possession relating, directly or indirectly, to any Confidential Information.

(b)            Each of the Executive’s obligations in this Section 8 shall also apply to the confidential, trade secret and proprietary information learned or acquired by the Executive during the Executive’s employment from others with whom the Company or any Affiliated Company has a business relationship. The Executive understands that the Executive is not to disclose to the Company or any Affiliated Company, or use for its benefit, any of the confidential, trade secret or proprietary information of others, including any of the Executive’s former employers.

(c)            In no event shall an asserted violation of the provisions of this Section 8 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement.

9.              Successors . (a) This Agreement is personal to the Executive, and, without the prior written consent of the Company shall not be assignable by the Executive other than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives.

(b)            This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Except as provided in Section 9(c), without the prior written consent of the Executive, this Agreement shall not be assignable by the Company.

(c)            The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.

10.           Miscellaneous . (a) This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified other than by a written agreement that is specifically identified as an amendment of this Agreement and executed by the Executive and by an authorized officer of the Company in a single instrument.

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

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If to the Executive :

800 North Lindbergh Boulevard

St. Louis, Missouri 63167

If to the Company :

800 North Lindbergh Boulevard

St. Louis, Missouri 63167

Attention: General Counsel

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

(c)            The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

(d)            The Company may withhold from any amounts payable under this Agreement such Taxes as shall be required to be withheld pursuant to any applicable law or regulation.

(e)            The Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including without limitation the right of the Executive to terminate employment for Good Reason pursuant to Section 3(c), shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

(f)             The Executive and the Company acknowledge that payments made and benefits provided pursuant to the Agreement may be considered “deferred compensation” that is subject to Section 409A of the Code, and it may therefore be necessary to amend the Agreement, within the time period permitted by the applicable Treasury Regulations, to make changes so as to cause such payments and benefits not to be considered “deferred compensation” for purposes of Section 409A of the Code, to cause the provisions of the Agreement to comply with the requirements of Section 409A of the Code, or a combination thereof, so as to avoid the imposition of taxes and penalties on the Executive pursuant to Section 409A of the Code. Compliance may require a six-month delay in severance or other Change of Control payments. The Executive hereby agrees that the Company may, without any further consent from the Executive, make any and all such changes to the Agreement as may be necessary or appropriate to avoid the imposition of penalties on the Executive pursuant to Section 409A of the Code, while not substantially reducing the aggregate value to the Executive of the payments and benefits to, or otherwise adversely affecting the rights of, the Executive under the Agreement.

11.           Certain Definitions . The following terms shall have the meanings set forth below for purposes of this Agreement.

“Accounting Firm” means the certified public accounting firm that was serving as the Company’s auditors immediately before the date of the Change of Control.

“Accrued Obligations” has the meaning set forth in Section 4(a)(1).

“Affiliated Company” means any company controlled by the Company.

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“After-Tax” means after taking into account all applicable Taxes and Excise Tax.

“Agreement” has the meaning set forth in the first paragraph of the Agreement.

“Annual Base Salary Amount” has the meaning set forth in Section 2(b)(1).

“Annual Bonus” has the meaning set forth in Section 2(b)(2).

“Average Pre-Change-of-Control Annual Bonus” means a bonus amount based upon the Executive’s average annual bonuses earned for fiscal years beginning before the date of the Change of Control under the Company’s annual incentive program as in effect from time to time, calculated as follows. If, as of the date of the Change of Control, the Executive has been employed by the Company and the Affiliated Companies and Pharmacia Corporation (formerly known as Monsanto Company) and its subsidiaries for at least the most recent three full fiscal years ending on or before the date of the Change of Control, and was eligible to earn an annual bonus under such programs for each such fiscal year, then the Average Pre-Change-of-Control Annual Bonus means the average of the annual bonuses earned by the Executive for each of such fiscal years. If, as of the date of the Change of Control, the Executive has been employed by the Company and the Affiliated Companies and Pharmacia Corporation and its subsidiaries for less than the most recent three full fiscal years ending on or before the date of the Change of Control, or was not eligible to earn an annual bonus under such programs for each such fiscal year, then the Average Pre-Change-of-Control Annual Bonus means the average of the annual bonuses earned by the Executive for each of such fiscal years for which the Executive was eligible to earn such an annual bonus. If the Executive earned an annual bonus under such programs for a period of less than 12 months, the amount of such annual bonus shall be annualized for purposes of determining the Average Pre-Change-of-Control Annual Bonus. If the Executive was not eligible to earn such an annual bonus for any fiscal year ending on or before the date of the Change of Control, then the Average Pre-Change-of-Control Annual Bonus shall be deemed to equal the Executive’s target annual bonus as in effect immediately before the date of the Change of Control.

“Base Salary” has the meaning set forth in Section 2(b)(1).

“Board” has the meaning set forth in the second paragraph of this Agreement.

“Cause” means (a) the Executive’s willful and continued failure to perform substantially the Executive’s duties as contemplated by Section 2(a)(1)(A) (except as a result of the Executive’s incapacity due to physical or mental illness or injury, or following the Executive’s delivery of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to the Executive by the Board or the Chief Executive Officer of the Company which specifically identifies the manner in which the Board or Chief Executive Officer believes that the Executive has not substantially performed the Executive’s duties, or (b) the Executive’s willful engaging in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company. For purposes of this definition, no act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer of the Company or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.

“Change of Control” means the happening of any of the events described in subsections (a) through (d) below:

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

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

(c)             consummation of a reorganization, merger, statutory share exchange, consolidation or similar transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company or the acquisition of assets or stock of another entity (a “Business Combination”), in each case, unless, following such Business Combination, (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of, respectively, the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business Combination (including without limitation an entity that as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding the Company, a Subsidiary of the Company, any entity resulting from a Business Combination or any employee benefit plan (or related trust) thereof) beneficially owns, directly or indirectly, 20 percent or more of the then-outstanding shares of common stock of the entity resulting from such Business Combination or 20 percent or more of the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors of such entity, except to the extent that such ownership existed prior to the Business Combination and (3) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body), of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination;

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

“Code” means the Internal Revenue Code of 1986, as amended.

“Company” has the meaning set forth in the first paragraph of this Agreement, and shall include any successor to the Company pursuant to Section 9(c).

“Confidential Information” means (a) all technical and business information of the Company and the Affiliated Companies, whether patentable or not, which is of a confidential, trade secret and/or proprietary character and that is either developed by the Executive (alone or with others) or to which the Executive has had access during the Executive’s employment, (b) all confidential evaluations, and (c) the confidential use or non-use by the Company or any Affiliated Company of technical or business information in the public domain.

“Date of Termination” means (a) if the Executive’s employment is terminated as a result of the Executive’s death or Disability, the date on which the Executive’s termination becomes effective pursuant to Section 3(a), and (b) otherwise, as defined in Section 3(e).

“Disability” means the absence of the Executive from the Executive’s duties with the Company on a full-time basis for 180 consecutive business days as a result of incapacity due to mental or physical illness or injury that is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative.

“Employment Agreement” means any employment agreement between the Company or any of the Affiliated Companies that may hereafter be entered into.

“Executive” has the meaning set forth in the first paragraph of this Agreement.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Excise Tax” means the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.

“Good Reason” means the occurrence of any one or more of the following conditions without the consent of the Executive: (a) any material diminution of (i) the Executive’s authority, duties or responsibilities; (ii) the authority, duties or responsibilities of the individual or group to whom the Executive reports, or (iii) the Executive’s budgetary authority; (b) any material failure by the Company to comply with any of the provisions of Section 2(a)(1) or Section 2(b); (c) any purported termination by the Company of the Executive’s employment otherwise than as expressly permitted by this Agreement; or (d) any failure by the Company to comply with and satisfy Section 9(c).

“Gross-Up Payment” means an amount such that, after payment by the Executive of all Taxes and Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

“Individual SERP” means individual agreements between the Executive and the Company or the Affiliated Companies regarding the provisions of supplemental retirement benefits such as (but not limited to) post-retirement income and/or welfare benefits.

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“Notice of Termination” means a written notice of the termination of the Executive’s employment that (a) indicates the specific termination provision in this Agreement relied upon, (b) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, and (c) specifies the Date of Termination (which shall be not earlier than the date such notice is given and not later than 30 days thereafter).

“Other Agreement” means any contract or agreement between the Company or any of the Affiliated Companies and the Executive, excluding any Employment Agreement and this Agreement and including without limitation any Individual SERP.

“Other Benefits” means any amounts or benefits required to be paid or provided or which the Executive is eligible to receive under any Other Plan or Other Agreement.

“Other Plan” means any plan, program, policy or practice provided by the Company or any of the Affiliated Companies, excluding this Agreement, any Employment Agreement and any Other Agreements.

“Parachute Value” of a Payment means the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2) of the Code, as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.

“Payment” means any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise.

“Person” means any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act.

“Prior Change-of-Control Employment Security Agreement” means the Change-of-Control Employment Security Agreement dated _____, 200_, between the Executive and Monsanto Company, as amended as of _____, 200_.

“Protected Period” has the meaning set forth in the first sentence of Section 2.

“Release” has the meaning set forth in Section 4(a).

“Release Deadline” means the latest business day that is not more than two months after the end of the calendar year in which the Date of Termination occurs.

“Retiree Welfare Benefits” means retiree benefits pursuant to any of the Specified Welfare Benefits.

“Retirement Plan” means the Monsanto Company Pension Plan and any successor thereto, and any other qualified defined benefit retirement plans of the Company and the Affiliated Companies, in each case to the extent the Executive was entitled to participate therein immediately before the Date of Termination.

“Safe Harbor Amount” means 2.99 times the Executive’s “base amount,” within the meaning of Section 280G(b)(3) of the Code.

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“Savings Plans” means the Monsanto Company Savings and Investment Plan, Savings and Investment Parity Plan, Deferred Payment Plan, and any successors thereto, and any other qualified and nonqualified defined contribution plans of the Company and the Affiliated Companies, in each case, to the extent the Executive was entitled to participate therein immediately before the Date of Termination.

“SERP” means the Monsanto Company ERISA Parity Pension Plan, the Monsanto Company Supplemental Retirement Plan, and any successors thereto, and any other “top hat,” excess or supplemental defined benefit retirement plans of the Company and the Affiliated Companies, in each case to the extent the Executive is entitled to participate therein immediately before the Date of Termination.

“Severance Period” means the period of [three/two] years beginning on the Date of Termination.

“Specified Welfare Benefits” means medical, prescription drug, dental, vision, disability and life insurance benefits that are substantially comparable to those that would have been provided to the Executive and the Executive’s family pursuant to Section 2(b)(4), if the Executive had remained employed by the Company during the Severance Period. Specified Welfare Benefits shall not include the benefit of making pre-tax contributions to any cafeteria or flexible spending plan.

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

“Taxes” means all federal, state, local and foreign income, excise, social security and other taxes (other than the Excise Tax and any taxes, interest and penalties imposed pursuant to Section 409A of the Code) and any associated interest and penalties.

“Term of this Agreement” means the period beginning on the date of this Agreement and ending on the following August 31; provided, however, that beginning on that August 31, and on each August 31 thereafter, the Term of this Agreement shall be automatically extended so as to terminate on the first anniversary of such August 31, unless the Company shall give notice to the Executive before the immediately preceding July 1 that the Term of this Agreement shall not be so extended.

“Underpayment” has the meaning set forth in Section 7(b).

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IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the authorization from its Board of Directors, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year first above written.

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Exhibit A

Form of Release

THIS RELEASE MUST BE SIGNED AND RETURNED BY _________, 20__. YOU MAY NOT MAKE ANY CHANGES TO THIS FORM.

Monsanto Company, on its own behalf and on behalf of its subsidiaries, affiliates, successors and predecessors (collectively, the “Company”), and I agree as follows:

(a) C onsideration: I will receive the severance pay and benefits provided for in Section 4(a) of the attached Change-of-Control Employment Security Agreement in exchange for this Release.

( b) Employment Termination: My employment with the Company has ended and I agree never to seek employment with the Company or its affiliates in the future.

(c) Claims Released: I represent that I have not been the victim of age discrimination or any other type of discrimination or wrongful act in connection with my employment with the Company. Consistent with this, I release the Company, its current and former subsidiaries and affiliates, and their employees or agents and related parties from all known or unknown claims, if any, that I presently could have arising out of my employment with the Company or the termination of my employment, except (1) Age Discrimination in Employment Act claims, of which I have none, (2) claims for payments and benefits to which I am entitled under the attached Change-of-Control Employment Security Agreement and (3) claims for the Other Benefits (as defined in the attached Change-of-Control Employment Security Agreement) identified on Schedule I hereto.

(d) Promise Not to File Claims: I promise never to file any lawsuit based on a released claim and I will withdraw with prejudice any such lawsuit that may already be pending. I promise never to seek any damages, remedies, or other relief for myself personally (any right to which I hereby waive) by prosecuting a charge with any administrative agency with respect to any claim released by this Release.

READ THIS RELEASE, AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT. YOU WILL HAVE UNTIL THE DATE INDICATED IN THE FIRST LINE ABOVE IN WHICH TO CONSIDER IT. THIS RELEASE INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS. IF YOU WISH, YOU SHOULD CONSULT YOUR ATTORNEY (AT YOUR OWN EXPENSE).

I have carefully read this Release, I fully understand what it means, and I am entering into it voluntarily.

EXHIBIT 10.2

Fiscal Year 2008 Annual Incentive Plan Summary

(September 1, 2007 through August 31, 2008 Performance Period)

General :

Financial Goals :

Process: Funding of Incentive Pool and Payout of Awards:

Events Affecting Payout of Individual Performance Year Incentives:

EXHIBIT 10.3

Form of

Terms and Conditions

of this Nonqualified Option Grant

You have received a Non-Qualified Option (the “Option”) under the Monsanto Company [2005] Long-Term Incentive Plan (the “Plan”). The Grant Date, the number of Shares covered by the Option, and the Exercise Price are set forth in the document you have received entitled “Stock Option Statement.” The Stock Option Statement and these terms and conditions collectively constitute the Award Certificate for the Option, and describe the provisions applicable to the Option. This Option is not intended to qualify as an “incentive stock option” as defined in Section 422 of the Code.

1.              Definitions . Each capitalized term not otherwise defined herein has the meaning set forth in the Plan or, if not defined in the Plan, in the attached Stock Option Statement. The “Company” means Monsanto Company, a Delaware corporation incorporated February 9, 2000.

(b)           Except as otherwise provided in the Plan, the Option may be exercised at any time after it vests and before its term expires or it is sooner forfeited as provided in Sections 3 and 4 below.

4.              Retirement, Disability, Death or Other Termination of Service; Transfer . If you experience a Termination of Service for any reason before the first anniversary of the Grant Date, the Option shall be forfeited . If you experience a Termination of Service after the first anniversary of the Grant Date, including, without limitation, by reason of Retirement, death, or Disability, the Option shall vest and remain exercisable (or be forfeited) to the extent provided in this Section 4.

(a)            Retirement . If you experience a Termination of Service as a result of Retirement after the first anniversary of the Grant Date, the Option shall become fully vested and shall remain exercisable until the earlier of the fifth anniversary of the date of your Termination of Service or the tenth anniversary of the Grant Date, and then shall be forfeited to the extent not exercised. For purposes of this Award Certificate, “Retirement” means a Termination of Service for any reason other than a Termination for Cause on or after your 50th birthday.

(b)             Death or Disability . If you experience a Termination of Service as a result of death or Disability after the first anniversary of the Grant Date, the Option shall become fully vested and shall remain exercisable until the earlier of the first anniversary of the date of your Termination of Service or the tenth anniversary of the Grant Date, and then shall be forfeited to the extent not exercised.

(c)             Termination for Cause . If you experience a Termination for Cause, the Option, whether vested or not, shall immediately be forfeited.

(d)             Voluntary Termination . If you experience a voluntary Termination of Service, then, to the extent the Option is vested on the date of your Termination of Service, it shall remain exercisable until the earlier of the 90th day after the date of your Termination of Service or the tenth anniversary of the

Grant Date, and then shall be forfeited to the extent not exercised. Any portion of the Option that is not vested on the date of your Termination of Service shall be forfeited upon your Termination of Service.

(e)             Involuntary Termination Other Than for Cause . If you experience an involuntary Termination of Service, other than a Termination for Cause, after the first anniversary of the Grant Date, the option shall become fully vested and shall remain exercisable until the earlier of the first anniversary of the date of your Termination of Service or the tenth anniversary of the Grant Date, and then shall be forfeited to the extent not exercised.      

(a)           You may exercise the Option at any time the Option has vested and become exercisable by giving notice to the Company specifying the number of Shares for which the Option is being exercised. The notice shall be provided to the Company’s Designated Administrator, in a manner set forth by the Company or the Designated Administrator for this purpose. The “Designated Administrator” is the person or entity most recently specified by the Company as such for purposes of the Plan.

(b)            The purchase price for the Shares for which the Option is being exercised shall be paid in full at the time of exercise and any other information required by the Committee shall be provided at that time. The purchase price shall be paid (i) in cash or by check, (ii) by tendering to the Designated Administrator whole Shares (but not fewer than 100 Shares), valued at their Fair Market Value on the date of exercise, or (iii) by any other method designated by the Committee. The Committee may require payment in a particular or different method in order to comply with applicable law.

6.              Withholding . In order for Shares to be delivered when you exercise the Option, you must make arrangements satisfactory to the Company for the payment of any taxes required to be paid or withheld in connection with the exercise of the Option. No more than the minimum required withholding will be permitted in the form of Shares. While the Company reserves the right to modify the methods of tax withholding that it deems acceptable, as of the time that this Award Certificate is being delivered to you, tax withholding may be satisfied by (i) cash or check, (ii) delivery of Shares, or (iii) retention, sale to a third party or cancellation by the Company of Shares otherwise deliverable upon the Option exercise.

7.              Nontransferability . The Option is not transferable by you other than upon death by will, the laws of descent and distribution, or written designation of a beneficiary. The Option is exercisable, during your lifetime, only by you (or by your guardian or legal representative). Any person who holds the Option is subject to the terms and conditions of this Award Certificate.  No transfer of the Option shall be effective to bind the Company unless the Company has been furnished with written notice of the transfer and appropriate evidence to establish the validity of the transfer and the acceptance by the transferee of the terms and conditions of this Award Certificate.

8.              No Right to Continued Employment or Service . This Award Certificate shall not limit or restrict the right of the Company or any Affiliate to terminate your employment or service at any time or for any reason.

9.              Effect of Award Certificate; Severability . This Award Certificate shall be binding upon and shall inure to the benefit of any successor of the Company and the person or entity to whom the Option may have been transferred by will, the laws of descent and distribution or beneficiary designation. The invalidity or enforceability of any provision of this Award Certificate shall not affect the validity or enforceability of any other provision of this Award Certificate. 

10. Amendment . The terms and conditions of this Award Certificate may not be amended in a manner adverse to you without your consent.

11. Discretionary Nature of the Plan. You acknowledge and agree that the Plan is discretionary in nature and may be amended, cancelled, or terminated by the Company, in its sole discretion, at any time.  The grant of the Option under the Plan is a one-time benefit and does not create any contractual or other right to receive a grant of stock options or benefits in lieu of stock options in the future.  Future grants of stock options, if any, will be at the sole discretion of the Company, including, but not limited to, the timing of any grant, the number of stock options, vesting provisions, and the exercise price.

12.           Plan Interpretation . This Award Certificate is subject to the provisions of the Plan, and all of the provisions of the Plan are hereby incorporated into this Award Certificate as provisions of this Option. If there is a conflict between the provisions of this Award Certificate and the Plan, the provisions of the Plan (including, without limitation, those setting forth the consequences of a Change of Control) govern. If there is any ambiguity in this Award Certificate, any term that is not defined in this Award Certificate, or any matters as to which this Award Certificate is silent, the Plan shall govern, including, without limitation, the provisions of the Plan addressing construction, governing law, and the powers of the Committee, among others, to (a) interpret the Plan, (b) prescribe, amend and rescind rules and regulations relating to the Plan, (c) make appropriate adjustments to the Option to reflect non-United States laws or customs or in the event of a corporate transaction, and (d) make all other determinations necessary or advisable for the administration of the Plan.

[To be included in Award Certificates with respect to employees outside of the United States:]

[ 13. Data Authorization. You acknowledge and consent to the collection, use, processing and transfer of personal data as described in this paragraph.  The Company, its Subsidiaries and Affiliates, and your employer hold certain personal information about you, including your name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all options or any other entitlement to shares of stock awarded, cancelled, purchased, vested, unvested or outstanding in your favor, for the purposes of managing and administering the Plan ("Data").  The Company, its Subsidiaries and/or Affiliates will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of your participation in the Plan, and the Company, its Subsidiaries and/or Affiliates may each further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  These recipients may be located in the European Economic Area, or elsewhere, such as the United States.  You authorize them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Company; however, withdrawing your consent may affect your ability to participate in the Plan. ]

EXHIBIT 10.4

Form of

Terms and Conditions

Restricted Stock Unit Grant

You have received an Award of Restricted Stock Units (the “Units”) under the [Monsanto Company Long-Term Incentive Plan][Monsanto Company 2005 Long-Term Incentive Plan] (the “Plan”). The Grant Date and the number of Units initially covered by this Award (the “Initial Number of Units”) are set forth in the document you have received entitled “Restricted Stock Units Statement.” The maximum number of Units that you may receive under this Award (the “Maximum Number of Units”) is two times the Initial Number of Units. The Restricted Stock Units Statement and these terms and conditions collectively constitute the Award Certificate for the Units, and describe the provisions applicable to the Units.

1.              Definitions . Each capitalized term not otherwise defined herein has the meaning set forth in the Plan or, if not defined in the Plan, in the attached Restricted Stock Units Statement. The “Company” means Monsanto Company, a Delaware corporation incorporated February 9, 2000.

2.              Nature of Units . The Units represent the right to receive, in certain circumstances, a number of Shares determined in accordance with the Restricted Stock Units Statement and these terms and conditions. Until such time (if any) as Shares are delivered to you, you will not have any of the rights of a common stockholder of the Company with respect to those Shares, your rights with respect to the Units and those Shares will be those of a general creditor of the Company, and you may not sell, assign, transfer, pledge, hypothecate, give away, or otherwise dispose of the Units. Any attempt on your part to dispose of the Units will result in their being forfeited. However, you shall have the right to receive a Dividend Equivalent Payment with respect to the Units (if any) that vest pursuant to this Award, subject to withholding pursuant to paragraph 6 below. “Dividend Equivalents” means cash in an amount equal to the aggregate cash dividends that would have been paid to you if you had been the record owner, on each record date for a cash dividend during the period from the Grant Date through the Nondeferred Settlement Date (as defined below) for the Units, of a number of Shares equal to the number of Units that vest under this Award. Dividend Equivalents shall be paid to you in cash on the Nondeferred Settlement Date. You shall not be entitled to receive any payments with respect to any non-cash dividends or other distributions that may be made with respect to the Shares. The “Nondeferred Settlement Date” means (a) as to Units to which a valid Deferral Election (as defined below) is not made, the date on which the Units are settled by delivery of shares pursuant to Section 4(a) or Section 5 below, and (b) as to Units for which a valid Deferral Election is made, the date on which the Units would have been settled by delivery of shares pursuant to Section 4(a) or Section 5 below, if such Deferral Election had not been made.

3.             Vesting of Units . (a) 162(m) Performance Goal . In order to vest in the Maximum Number of Units or any lesser number of Units under this Award, the 162(m) Performance Goal must be met (as determined and certified by the Committee following August 31, 2009). The “162(m) Performance Goal” is that the Company ’ s Net Income, as defined in the next sentence, must exceed zero for the period September 1, 2007 through August 31, 2009. “Net Income” means gross profit (i) minus (A) sales, general and administrative expenses, (B) research and development expense, (C) amortization, (D) net interest expense, and (E) income taxes and (ii) plus or minus other income and expense; all as reported in the Company ’ s financial statements; but excluding positive or negative effects of (I) restructuring charges and reversals, (II) the outcome of lawsuits, (III) research and development write-offs on acquisitions, (IV) impact of liabilities, expenses or settlements related to Solutia, Inc. or agreements associated with a Solutia, Inc. plan of reorganization, (V) unbudgeted business sales and divestitures; and (VI) the cumulative effects of changes in accounting methodology made after August 31, 2007.

(b)           EPS and Cash Flow Goals . If the Section 162(m) Performance Goal is met, then the number of Units eligible for vesting under this Award will be determined one-third based upon the Company’s achievement of cumulative earnings per share (the “EPS Goal”), one-third based upon the Company’s achievement of cumulative cash flow (the “Cash Flow Goal”), and one-third based upon the Company’s achievement of return on capital (the “ROC Goal,” and, together with the EPS Goal and the Cash Flow Goal, the “Goals” and each, singularly, a “Goal”) for fiscal years 2008 and 2009 as compared to the goals set forth in Exhibit A hereto. Not later than November 15, 2009, the Committee will determine the extent to which the Goals have been met and the number of Units eligible for vesting under this Award and the number of Units to be forfeited, as follows.

Below Threshold-Level Performance : For each Goal as to which performance is below threshold level, one-third of the Initial Number of Units shall be forfeited.

Above Threshold-Level/Below Target Performance : For each Goal as to which performance is above threshold level but below target level, a number of Units shall become eligible for vesting, equal to (i) one-third of the Initial Number of Units times (ii) the percentage determined by interpolating between 50% and 100%, based on the relationship between actual performance and target-level performance for that Goal.

Target-Level Performance : For each Goal as to which target-level performance is achieved, one-third of the Initial Number of Units shall be eligible for vesting.

Above Target-Level Performance : For each Goal as to which greater than target-level performance is achieved, a number of Units shall become eligible for vesting, equal to (i) one-third of the Initial Number of Units times (ii) the percentage determined by interpolating between 100% and 200%, based on the relationship between actual performance and target-level performance for that Goal.

(c) Number of Units; Effect of Forfeiture . From the Grant Date through November 14, 2009, the number of Units subject to this Award shall be the Initial Number of Units. If the 162(m) Performance Goal is not met, or if neither of the Goals is met at the threshold level or above, all Units under this Award will be forfeited as of November 15, 2009. Otherwise, the number of Units subject to this Award from November 15, 2009 through August 31, 2010 shall be the number of Units (if any) that are eligible for vesting after application of the foregoing and those Units will vest effective as of August 31, 2010, except as otherwise provided below.

(d) Effect of Termination of Service . If you incur a Termination of Service before August 31, 2009 as a result of a Termination without Cause or your Retirement, Disability or death, then effective as of August 31, 2009, a number of Units shall vest, equal to (i) the number of Units (if any) that become eligible for vesting, based upon the application of paragraphs (b) and (c) above, times (ii) a fraction, the numerator of which is the number of days from September 1, 2007 through your date of termination, and the denominator of which is 730. If your employment terminates after August 31, 2009 and before August 31, 2010 as a result of a Termination without Cause or your Retirement, Disability or death, effective as of August 31, 2009, a number of Units subject to this Award shall vest, equal to the number of Units (if any) that become eligible for vesting, based upon the application of paragraphs (b) and (c) above. If your employment terminates before August 31, 2010 for any other reason, all Units subject to this Award shall be forfeited as of the date of your termination.

4.              Delivery of Shares . (a) Vested Units . The Company shall deliver to you a number of Shares equal to the number of Units (if any) that vest pursuant to this Award, subject to withholding as provided in paragraph 6 below. Such delivery shall take place immediately after August 31, 2010, unless and to the extent a valid Deferral Election (as defined below) applies; provided, however, that in the event of

your Termination of Service pursuant to Section 3(d) above, other than as a result of your death or “disability” within the meaning of Section 409A(a)(2)(C) of the Internal Revenue Code of 1986, as amended (the “Code”), to the extent that you are considered a Key Employee at such time (for purposes of this Agreement, “Key Employee” shall be defined as such term is defined under Section 416(i) of the Code), such delivery shall take place on the later of (i) August 31, 2010 or (ii) six months after your Termination of Service. During any period from September 1, 2010 until such delivery occurs, for purposes of your entitlement to Dividend Equivalents with respect to this Award, the number of Units subject to this Award on any given date shall be the number of such Units that have vested but with respect to which no such delivery has yet occurred as of that date.

(b) Deferral Elections . You shall be permitted to elect to defer delivery of Shares with respect to the Units (if any) that vest pursuant to this Award, in accordance with the rules set forth below and any rules and procedures that may hereafter be adopted by the Committee or its delegee (but in no event may you elect to defer the payment of any Dividend Equivalents hereunder). Such elections (“Deferral Elections”) must be made no later than August 31, 2008, and will be irrevocable once made; provided, that any Deferral Elections that you may have made shall become null and void upon your Termination of Service for any reason on or before August 31, 2010. You may make a Retirement Election, a Date Certain Election, or both. A “Retirement Election” means a Deferral Election pursuant to which the vested Units to which it relates will be settled by delivery of a number of Shares equal to the number of such vested Units, either in a lump sum or in monthly installments over a period of up to ten (10) years, with such lump sum or the first such installment to be delivered during the January next following the date of your Retirement or any subsequent January; provided, however, that to the extent that you are considered a Key Employee at the time of your Retirement, and your Retirement does not result from your death or “disability” within the meaning of Section 409A(a)(2)(C) of the Code, such delivery shall in no event take place earlier than six months after your Retirement. A “Date Certain Election” means a Deferral Election pursuant to which the vested Units to which it relates will be settled by delivery of a number of Shares equal to the number of such vested Units, in a lump sum as soon as reasonably practicable following a specified date (the applicable “Date Certain”), which must be later than August 31, 2010.

(c)            Settlement of Deferred Units . Any of your vested Units as to which a Date Certain Election is in effect shall be settled in accordance with such Date Certain Election, unless your Termination of Service occurs before the applicable Date Certain; provided, however, that to the extent that you are considered a Key Employee at the time of your Termination of Service, and your Termination of Service does not result from your death or “disability” within the meaning of Section 409A(a)(2)(C) of the Code, such delivery shall in no event take place earlier than six months after your Termination of Service. Upon your Retirement after August 31, 2010, any portion of your vested Units as to which a Retirement Election is in effect shall be paid in accordance with that Retirement Election, and the remaining balance (if any) of your vested Units shall be settled by delivery of Shares in a single lump sum immediately thereafter; provided, however, that to the extent that you are considered a Key Employee at the time of your Retirement, and your Retirement does not result from your death or “disability” within the meaning of Section 409A(a)(2)(C) of the Code, such delivery shall in no event take place earlier than six months after your Retirement. Upon your Termination of Service after August 31, 2009 for any reason other than a Retirement, any remaining vested Units that have not yet been settled (whether subject to a Retirement Election or a Date Certain Election) shall be settled by delivery of Shares in a single lump sum immediately thereafter; provided, however, that to the extent that you are considered a Key Employee at the time of your Termination of Service, and your Termination of Services does not result from your death or “disability” within the meaning of Section 409A(a)(2)(C) of the Code, such delivery shall in no event take place earlier than six months after your Termination of Service.

(d)            Hardship Withdrawals . Upon your written request or that of your legal representative, the Committee may (but shall not be required to) settle all or a portion of your deferred vested Units by delivery

of Shares on a date after August 31, 2010 but before the date otherwise provided by the applicable Deferral Election, to the extent the Committee determines to be necessary to alleviate a severe unforeseeable financial hardship to you as a result of the illness or accidental injury of you, your spouse, or one of your dependents as defined in Section 152 of the Code (without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B)), a casualty loss of property not fully covered by insurance, or other similar financial hardship caused by extraordinary and unforeseeable circumstances beyond your control, provided that such circumstances constitute in each case an “unforeseeable emergency” as defined under Section 409A of the Code; provided, however, that the amounts distributed to you pursuant to subclause (i) above shall not exceed the amounts that may be distributed, if any, without the imposition of the excise tax provisions of Section 409A of the Code to such distribution.

(e)            Fractional Shares . Whenever any Units are to be settled in installments, the number of Units in any given installment shall be rounded to the nearest whole number to avoid a requirement to deliver a fractional share.

5.              Change of Control . Upon the occurrence of a Change of Control that qualifies as an event described in Section 409A(a)(2)(A)(v) of the Code and the regulations thereunder, notwithstanding any other provision of this Award Certificate other than paragraph 6, the number of Units subject to this Award (subject to paragraph 6 below) shall vest in full and, except as provided below, shall promptly be settled by delivery of Shares to you in a single lump sum. For this purpose, (a) the number of Units subject to this Award shall be determined pursuant to paragraph 3(c) above as of the date of such Change of Control, except that if the date of the Change of Control is after August 31, 2009 and before November 15, 2009, the adjustments to the number of Units pursuant to paragraphs 3(a) and (b) shall apply effective as of the date of such Change of Control, and (b) if you have had a Termination of Service before the date of such Change of Control, the provisions of paragraph 3(d) shall also apply.

6.              Withholding . Notwithstanding any other provision of this Award Certificate, your right to receive Dividend Equivalents and to receive Shares in settlement of any Units is subject to withholding of all taxes that are required to be paid or withheld in connection with the payment of those Dividend Equivalents or the delivery of those Shares . With respect to the delivery of Shares, you must make arrangements satisfactory to the Company for the payment of any such taxes. While the Company reserves the right to modify the methods of tax withholding that it deems acceptable, as of the time that this Award Certificate is being delivered to you, such tax withholding may be satisfied by (i) cash or check, (ii) delivery of previously owned Shares, or (iii) withholding by the Company of Shares that would otherwise be delivered to you in settlement of such Units. No more than the minimum required withholding will be permitted under clauses (ii) and/or (iii) of the preceding sentence. If any taxes are required to be withheld at a date earlier than when the Units are to be settled (other than with respect to the payment of Dividend Equivalents in cash), then notwithstanding any other provision of this Award Certificate, the Company may (i) satisfy such obligation by causing the forfeiture a number of Units having a Fair Market Value, on such earlier date, equal to the amount necessary to satisfy the minimum required amount of such withholding, or (ii) make such other arrangements with you for such withholding as may be satisfactory to the Company in its sole discretion.

7.              No Right to Continued Employment or Service . This Award Certificate shall not limit or restrict the right of the Company or any Affiliate to terminate your employment or service at any time or for any reason.

8.              Effect of Award Certificate; Severability . This Award Certificate shall be binding upon and shall inure to the benefit of any successor of the Company. The invalidity or enforceability of any provision of this Award Certificate shall not affect the validity or enforceability of any other provision of this Award Certificate.

9.              Amendment . The terms and conditions of this Award Certificate may not be amended in any manner adverse to you without your consent.

10.           Plan Interpretation . This Award Certificate is subject to the provisions of the Plan, and all of the provisions of the Plan are hereby incorporated into this Award Certificate as provisions of the Units. If there is a conflict between the provisions of this Award Certificate and the Plan, the provisions of the Plan govern. If there is any ambiguity in this Award Certificate, any term that is not defined in this Award Certificate, or any matters as to which this Award Certificate is silent, the Plan shall govern, including, without limitation, the provisions of the Plan addressing construction and governing law, as well as the powers of the Committee, among others, to (a) interpret the Plan, (b) prescribe, amend and rescind rules and regulations relating to the Plan, (c) make appropriate adjustments to the Units in the event of a corporate transaction, and (d) make all other determinations necessary or advisable for the administration of the Plan.