Endophyte
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1. A plant living within another plant. In turfgrasses, it is a fungus (fungi) within the grass plant secreting substances that repel insect pests.
The endophyte life cycle.
Source: http://www.waldeneffect.org/blog/Endophytes_help_plants__44___harm_animals/
The tall fescue endophyte fungus is found inside a leaf sheath cell.
Source: http://www.goatworld.com/articles/nutrition/tallfescuetoxicosis.shtml
Source: Ohio State University Turfgrass Program