Monsanto Technology Agreement 1998

[See update April 2001 below. - Farmers now give up their right to sue if crop fails!]

Monsanto Technology Agreement

---We appreciate your Interest in Monsanto's advanced technologies and the exiting benefits they offer. This Monsanto Technology Agreement covers Roundup Ready^TM cotton, Bollgard^TM cotton, Bollgard^TM with Roundup Ready^TM cotton, Roundup Ready^TM soybeans, YieldGard^TM corn and Roundup Ready^TM corn.

---For your convenience, this Agreement remains in effect until either you or Monsanto choose to terminate the Agreement. Once you enroll, information regarding new and existing technologies and any new terms will be mailed to you each year. Additionally, by completing this Agreement, you are automatically enrolled in the Technology Value Package^TM, designed to bring increased benefits to you.

You Receive:

Opportunity to purchase and plant seed containing these technologies under this long-term Agreement.
Opportunity to participate in the Technology Value Package^TM for applicable crop(s).

You Understand:

These Monsanto gene technologies are protected under U.S. patent law. Monsanto licenses the Grower under applicable patents owned or licensed by Monsanto to use these technologies under the conditions listed below.

Regulatory approval of grain harvested from seed of Roundup Ready^TMcorn Is pending in certain export markets and may not be received before the 1998 harvest. As a result, the Grower may be restricted from introducing the grain into channels of trade where the potential for export exists, in such cases, the Grower should be prepared to feed the grain on-farm, or sell for use in domestic markets only.
YieldGard^TM and Bollgard^TM gene technologies can only be used In locations where the products have been approved for use by all required governmental agencies.

You Agree:

To use the seed containing Monsanto gene technologies for planting a commercial crop only in a single season.
To not supply any of this seed to any other person or entity for planting, and to not save any crop produced from this seed for replanting, or supply saved seed to anyone for replanting.
To not use this seed or provide it to anyone for crop breeding, research, generation of herbicide registration data or seed production.
If a herbicide containing the same active ingredient as Roundup Ultra^TM herbicide (or one with a similar mode of action) is used over the top of Roundup Ready^TM crops, you agree to use only Roundup^TM brand herbicide.
To pay the applicable Technology Fee for the particular product being purchased.
To implement an Insect Resistance Management Program specified in the applicable Bollgard^TM cotton and YieldGard^TM corn sections of the Product Use Guide and to cooperate with Insect Resistance Management Programs and research.

COTTON ONLY

To provide, upon request, the locations of all fields planted with Bollgard^TM cotton and to cooperate fully with any inspections.
To allow Monsanto to inspect all of your fields planted with Bollgard^TM cotton to ensure that you have followed an approved Insect Resistance Management Program. All inspections will be performed at a reasonable time arranged with you in their presence, unless you do not wish to be present. Refer to the Bollgard^TM cotton section of the Product Use Guide for specific instructions regarding refuge requirements.
If Monsanto reasonably believes that you have planted saved cottonseed containing a Monsanto genetic trait, Monsanto will request invoices or otherwise confirm that fields in question have been planted with newly purchased seed. If this information is not provided within 30 days, Monsanto may inspect and test all of your cotton fields to determine if saved cottonseed has been replanted. Any inspections will be performed at a reasonable time arranged with you in their presence, unless you do not wish to be present.
Any technology fees not paid by the net due date will be assessed a late fee of 18% per year (not to exceed the maximum rate allowed by law) on the unpaid principal balance.

YieldGard TM ONLY

See the YieldGard^TM corn section of the Product Use Guide for complete details of the required insect Resistance Management Program.

General Conditions:

---The Grower's rights may not be transferred to anyone else without written consent of Monsanto. If the Grower's rights are transferred with Monsanto's consent or by operation of the law, this Agreement is binding on the person ore entity receiving the transferred rights.

---If the Grower violates the terms of this Agreement, in addition to other remedies available to the technology provider(s), the Grower's rights under this Agreement will terminate immediately and the Grower forfeits the right to obtain an Agreement in the future. The Grower agrees that the technology provider(s) are entitled to recover their full amount of legal fees and other costs of enforcing this Agreement. If the Agreement is terminated, the Grower will no longer have the right under this Agreement to purchase seed containing these technologies, however any obligations that arise before termination will continue in effect. In the event that the Grower saves, supplies, sells or acquires seed for replant in violation of this Agreement and license restriction, in addition to other remedies available to the technology provider(s), the Grower agrees that damages will include a claim for liquidated damages, which will be based on 120 times the applicable Technology Fee.

---Refer to the applicable section of the Product Use Guide, which is part of this Agreement, for specifics relating to these terms.

THIS AGREEMENT IS GOVERNED BY THE LAWS OF THE STATE OF MISSOURI AND THE UNITED STATES (OTHER THAN THE CHOICE OF LAW RULES). THE PARTIES CONSENT TO THE EXCLUSIVE JURISDICTION OF THE U.S.DISTRICT COURT FOR THE EASTERN DISTRICT OF MISSOURI, EASTERN DIVISION, AND THE CIRCUIT COURT OF THE COUNTY OF ST. LOUIS, STATE OF MISSOURI, FOR ALL DISPUTES ARISING UNDER THIS AGREEMENT.

The licensed U.S. patents include; for YieldGard^TM corn - 5,484,956; 5,500,365; 5,357,605; 5,538,877; 5,538,880; 5,359,142; 5,322,938; 5,164,316; 5,196,525; 5,424,412 and 5,424,200; for Roundup Ready^TM corn - 5,633,448; 5,554,798; 4,535,060; 4,940,835; 5,538,877; 5,538,880; 5,510,471; 5,094,945 and5,188,642; for Roundup Ready^TM soybeans - 5,500,365; 5,424,200; 5,359,142; 5,352,605; 5,322,938; 5,196,525 and 5,164,316; and for Bollgard^TM with Roundup Ready^TM cotton - 5,633,435; 5,500,365; 5,424,200; 5,359,142; 5,352,605; 5,322,938; 5,196,525; 5,188,642; 5,164,316; 4,940,835 and 4,535,060.

Thank you for choosing our advanced technologies. We look forward to working with you in the future.

If you have any questions regarding the technologies from Monsanto, please call the Monsanto Customer Relations Center at:

I-800-523-2333

ALWAYS READ AND FOLLOW LABEL DIRECTIONS. Roundup^TM, Roundup Ultra^TM, Roundup Ready^TM, Bollgard^TM, YieldGard^TM, and Technology Value Package^TM are trademarks of Monsanto Company.

Monsanto Company 1997 10/97 1998

UPDATE April 2001

Farmers must sign away rights to legal recourse should Monsanto Crops fail to perform

Alive: Canadian Journal of Health and Nutrition Apr01

Farmers wishing to grow Monsanto's biotech crops will have a new contract to sign. Under the 2001 Technology Agreement, growers have to sign away rights to legal recourse should the crop fail to perform.

In the past, farmers have sued Monsanto for millions of dollars when its biotech crops failed for various reasons, including inability to adapt to local conditions. This option is no longer available.

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