Document:

Unassociated Document

    
      

    

    
      Exhibit 10.20

      

      Work
for Hire Agreement

      

      This Work
for Hire Agreement (this “Agreement”) is made effective as of October 20,
2008 by and between the Federal Agricultural Mortgage Corporation (“Farmer
Mac”), 1133 21st Street, N.W., Washington, DC 20036, and William T. Sandalls,
Jr. (“Sandalls”), 445 Broadway, Apt. 2P, Hastings on Hudson,
NY  10706, in consideration of the mutual promises made
herein.

      

      1.    DESCRIPTION OF
SERVICES.  Beginning on October 20, 2008, Sandalls agrees
to provide certain financial and management services for Farmer Mac, including
serving as Farmer Mac’s Acting Chief Financial Officer, as Farmer Mac’s Acting
Chief Executive Officer may request (collectively, the
“Services”).  The Services include, but are not limited to,
supporting:  (a) managing the finance department; (b) serving on
Farmer Mac’s Asset and Liability Committee; (c) reviewing, performing
necessary due diligence with respect to, and certifying as Chief Financial
Officer, Farmer Mac’s periodic financial reports on Form 10-Q and 10-K, as
appropriate; and (d) subject to a determination that the certifications are true
and correct, executing the applicable certifications with respect to those
periodic reports as required by federal securities law.  These
services will be performed in coordination with Farmer Mac’s officers and other
employees.

      

      2.    PAYMENT FOR
SERVICES.  In consideration for the provision of the Services,
Farmer Mac will pay Sandalls at a per diem rate equaling $372,030 per
annum.  Payment for these services will be made on a bi-weekly basis.

      

      3.    EXPENSES.  Farmer
Mac will reimburse Sandalls for any reasonable and necessary expenses actually
incurred in carrying out the Services described under paragraph 1 of this
Agreement, including, without limitation, expenses for travel, including
airfares, meals and lodging, including in the Washington DC
area.  Reimbursement will be made to Sandalls after presentation to
Farmer Mac of an itemized accounting and documentation of such expenses, and
otherwise in compliance with Farmer Mac’s policies with regard to expense
reimbursements.  Sandalls shall obtain the consent of Michael A.
Gerber, the Acting President and Chief Executive Officer of Farmer Mac, prior to
incurring any expenses of an extraordinary or unusual nature.  No
expense reimbursement shall be paid later than the last day of the calendar year
following the calendar year in which the related expense was incurred, except to
the extent that the right to reimbursement does not provide for a “deferral of
compensation” within the meaning of Section 409A of the US Internal Revenue
Code and the regulations and guidance promulgated thereunder.  No
amount reimbursed during any calendar year shall affect the amounts eligible for
reimbursement in any other calendar year.

      

      4.    TERM/TERMINATION.  This
Agreement shall commence on the date of this Agreement and shall automatically
terminate on March 31, 2009, unless earlier terminated for any reason by either
party hereto upon 5 days’ prior written notice.  Upon such
termination, Sandalls shall be entitled to payment for services provided and
expenses incurred up to such date.

      

      5.    RELATIONSHIP OF
PARTIES.  It is agreed that Sandalls will provide the Services
as an independent contractor and not as an employee of Farmer Mac, and will not
hold himself out as anything other than an independent contractor of Farmer
Mac.  Nothing contained in this Agreement shall be construed to create
an employer-employee or principal-agent relationship or joint venture between
Sandalls and Farmer Mac, and neither party shall have the right, power or
authority to obligate or bind the other in any manner whatsoever.  The
consideration set forth in Section 2 above shall be the sole payment due for
services rendered.  Farmer Mac will not provide Sandalls with any
fringe benefits, including health insurance benefits, paid vacation, or any
other similar employee benefits typically provided to Farmer Mac
employees.  It is understood that Farmer Mac will not withhold any
amounts for payment of taxes from the compensation of Sandalls and that Sandalls
shall be solely responsible to pay all applicable taxes on amounts paid to
Sandalls under this Agreement.

      

      6.    WORK PRODUCT
OWNERSHIP.  Any copyrightable works, ideas, discoveries,
inventions, patents, products, or other information (collectively, the “Work
Product”) developed in whole or in part by Sandalls in connection with the
Services shall be the exclusive property of Farmer Mac.  Upon
completion of the project, Sandalls agrees to turn over to Farmer Mac all
documents related to this project, as they are considered highly
confidential.  Upon request, Sandalls shall sign all documents
necessary to confirm or perfect the exclusive ownership by Farmer Mac of the
Work Product.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      7.    INDEMNIFICATION.  Farmer
Mac agrees to indemnify and hold harmless Sandalls from and against any and all
losses, claims, expenses (including reasonable legal fees and expenses), damages
and liabilities (collectively, “Losses”) that arise out of Sandalls’s
performance of his obligations under this Agreement; provided, however,
that this indemnity agreement shall not apply to any Losses that proximately
result from Sandalls’s gross negligence, willful misconduct or material breach
of this Agreement.

      

      8.    DIRECTORS AND OFFICERS
INSURANCE.  Farmer Mac agrees to include Sandalls as a named
insured, as Acting Chief Financial Officer, under Farmer Mac’s Directors and
Officers Insurance Coverage.

      

      9.    CONFIDENTIALITY. Farmer Mac and Sandalls
both recognize that Sandalls has access to and will acquire, and may assist in
developing, confidential and proprietary information relating to the business
and operations of Farmer Mac as a result of the provision of the Services to
Farmer Mac.  Sandalls hereby covenants and agrees that he will retain
all “Confidential Information” (as defined below) in trust for the sole benefit
of Farmer Mac and its successors and assigns.  Sandalls hereby
covenants further that, in addition to his general responsibility not to
disclose certain information of or relating to Farmer Mac, he will not, at any
time during or after the term of this Agreement, without the prior written
consent of Farmer Mac, directly or indirectly communicate or divulge any such
Confidential Information to any person, firm, corporation or other business
organization, or use any such Confidential Information for his own account or
for the account of any other person, except as required in connection with the
performance of the Services.  The term “Confidential Information”
shall mean any trade secret, data, client list, legal opinion or other
confidential or proprietary information related to the business and activities
of Farmer Mac.  Notwithstanding the foregoing, Confidential
Information shall not include any information that is or is made by Farmer Mac a
part of the public domain or generally available to the public (unless such
availability occurs as a result of any breach by Sandalls of this provision), or
is available to Sandalls on a non-confidential basis from a source (other than
Farmer Mac) that is not bound by a confidentiality agreement and does not breach
his fiduciary responsibilities.  The terms of this provision shall
survive the termination of this Agreement and the termination of the Services
hereunder.

      

      10.    INSIDER
TRADING.  Notwithstanding Sandalls’s status as an independent
contractor, Sandalls shall be subject to Farmer Mac’s Statement of Policy on
Insider Trading, a copy of which Sandalls has received and reviewed.

      

      11.    CONTRACTOR’S REPRESENTATIONS AND
WARRANTIES.  Sandalls represents and warrants to Farmer Mac
that:

      

      a.    No third
party has exclusive rights to his services and that this Agreement in no way
compromises the rights of any third party or creates a conflict of interest for
Sandalls or Farmer Mac.  Sandalls further represents and warrants that
in performing this Agreement, he will not create any conflict of interest that
may be detrimental to the interests of Farmer Mac.

      

      b.    For purposes
of avoiding potential conflicts of interest, Sandalls will disclose to Farmer
Mac all other employment or independent contractor relationships in which he
becomes involved during the term of this Agreement.

      

      c.    Sandalls will
not disclose to Farmer Mac any confidential or proprietary information obtained
from third parties prior to Sandalls’s entering into this Agreement with Farmer
Mac.

      

      d.    In performing
the Services, Sandalls will comply with all applicable Farmer Mac policies and
procedures, including but not limited to Farmer Mac’s Code of Business Conduct
and Ethics, and will adhere to Farmer Mac’s ethical and professional
standards.  Sandalls will diligently and conscientiously perform his
work under this Agreement.

      

      12.    GOVERNING LAW.  This Agreement
will be governed by, and interpreted and enforced in accordance with, the laws
of the District of Columbia.

      

      13.    ENTIRE
AGREEMENT.  This Agreement sets forth the entire understanding
of the parties concerning the subject matter hereof and replaces and supersedes
all other agreements or understandings, whether written or oral.  No
amendment, modification or waiver of this Agreement shall be binding unless in
writing and signed by or on behalf of the parties hereto.

      

      14.    MODIFICATION.  This
agreement may be amended only by a writing signed by both Sandalls and Farmer
Mac.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      15.    SEVERABILITY.  If
any term, condition, or provision of this Agreement or the application thereof
to any party or circumstances will, at any time or to any extent be invalid or
unenforceable, the remainder of this Agreement, or the application of such term,
condition or provision to parties or circumstances other than those to which it
is held invalid or unenforceable, will not be affected thereby, and each term,
condition and provision of this Agreement will be valid and enforceable to the
fullest extent permitted by law.

      

      16.    WAIVER.  The waiver
by any party of a breach of any provision of this Agreement will not operate as
a waiver of any other breach of any provision of this Agreement by any party.

      

      17.    ARBITRATION. Any controversy, claim
or dispute arising out of or relating to this Agreement or the breach thereof
shall be settled by arbitration in accordance with the then existing Commercial
Arbitration Rule of the American Arbitration Association, and judgment upon the
award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof.  The parties irrevocably consent to the
jurisdiction of the federal court located in the District of Columbia for this
purpose.  Each such arbitration proceeding shall be located in the
District of Columbia.  

      

      18.    NOTICES.  Any notice
given under this Agreement will be sufficient if in writing and
either:  (a) mailed postage prepaid by registered or certified mail,
return receipt requested; or (b) delivered by hand, to the addresses specified
on the first page of this Agreement (or to such other addresses as may from time
to time be designated by notice from the recipient party to the
other).  Any such notice will be effective upon actual receipt or
refusal thereof.

      

      

      Party
contracting the Services:

      

      Federal
Agricultural Mortgage Corporation

       

      

      
        	
                By:

              	
                /s/
      Michael A. Gerber

              

      

      Name:  Michael
A. Gerber

      Title:  Acting
President and Chief Executive Officer

      

      

      Party
providing the Services:

      

      

      /s/
William T. Sandalls, Jr.

      William
T. Sandalls, Jr.Unassociated Document

    
      

    

    
      Exhibit 10.21

       

       

      SECONDMENT
AGREEMENT

       

      WHEREAS,
Michael A. Gerber (the "Executive") serves as the Chief Executive Officer of
Farm Credit of Western New York, an Association in the Farm Credit System
("FCWNY");

       

      WHEREAS,
with the consent of FCWNY, the Executive has agreed to serve as interim Chief
Executive Officer of The Federal Agricultural Mortgage Association ("Farmer Mac"
and, collectively with FCWNY, the "Parties");

       

      WHEREAS,
in connection with the Executive's engagement by Farmer Mac, FCWNY has agreed to
second the Executive to Farmer Mac; and

       

      WHEREAS,
the Parties desire to enter into this Secondment Agreement to set forth the
terms and conditions under which the Executive will provide the Services (as
defined below) to Farmer Mac during the Secondment Period (as defined
below);

       

      NOW,
THEREFORE, in consideration of the premises and the mutual agreements of the
Parties contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereto
agree as follows:

       

      Section
1.    Definitions. 
The following initially capitalized terms, as used in this Secondment Agreement,
have the following meanings:

       

      (a)         "Effective
Date" means October 1, 2008.

       

      (b)        
"Secondment Period" means that period commencing on the Effective Date and
ending upon the termination of this Secondment Agreement in accordance with
Section 6 hereof.

       

      (c)         
"Services" means all services commensurate with the duties of the Chief
Executive Officer of Farmer Mac during the Secondment Period. 

       

      Section
2.     Executive's Continued
Employment with FCWNY.  During the Secondment Period, FCWNY shall
make the Executive available to Farmer Mac for the purpose of performing the
Services for or on behalf of Farmer Mac.  Notwithstanding the
foregoing, the Executive will at all times during the Secondment Period continue
to be an employee of, and an employee only of, FCWNY.  The Executive shall
be subject to the personnel policies and other terms and conditions of
employment administered by FCWNY with respect to its employees, generally, and
shall be entitled to receive from FCWNY all benefits, perquisites and privileges
available generally to FCWNY employees, whether or not seconded.  The
Executive shall also be subject to Farmer Mac's personnel and other policies to
the extent that they do not conflict with FCWNY's policies.  During
the Secondment Period, the Executive shall report to, and receive substantive
direction regarding his duties from, Farmer Mac's Board of
Directors.

       

      Section 3.    Salary and
Benefits.  During the Secondment period, FCWNY, and not Farmer Mac,
shall pay the Executive's salary and provide any insurance, pension and other
benefits to which he is entitled as an employee of FCWNY and under any written
or oral agreements or understandings with respect to his employment with FCWNY
(collectively, the "Executive Employment Arrangements").

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Section
4.     Reimbursement of
FCWNY.

      

      (a)         In
consideration for FCWNY making the Executive available to provide the Services
during the Secondment Period, Farmer Mac shall pay to FCWNY, on a monthly basis
promptly following the end of each month, an amount equal to the sum of (a) the
Executive's base salary for such month (or portion of such month if the
Secondment Period is not in effect for the entire month), and (b) FCWNY's cost
of providing employee benefits to the Executive pursuant to the Executive
Employment Arrangements for such month (or portion of such month if the
Secondment Period is not in effect for the entire month).  FCWNY
agrees not to increase the Executive's base salary or the cost of providing
employee benefits to the Executive above those in effect immediately before the
Effective Date except to the extent such increases are no greater than those
applicable to other officers of FCWNY.

      

      (b)         In
addition, to the extent that FCWNY provides any cash bonus (including, but not
limited to, pursuant to any qualified incentive compensation plan) to the
Executive for any period that includes the Secondment Period, Farmer Mac shall
reimburse FCWNY for a pro rata share of such bonus, as determined by multiplying
the total cash bonus by a fraction, the numerator of which is the number of days
in the Secondment Period during the applicable bonus period and the denominator
of which is the total number of days during the applicable bonus
period.  Such reimbursement shall be paid by Farmer Mac to FCWNY
within ten (10) days after Farmer Mac receives an invoice from FCWNY specifying
such amount.  FCWNY agrees not to increase the Executive's target
bonus for any period above that in effect immediately before the Effective Date
except to the extent such increase is no greater than that applied to other
officers of FCWNY.

      

      Section
5.    Farmer Mac Indemnification
of FCWNY.  Farmer Mac agrees to indemnify and hold FCWNY harmless
from and against any and all losses, damages, expenses, costs of defense and
claims incurred by FCWNY in connection with a third-party claim (collectively,
"Losses") that may arise in connection with, or in respect of, the Executive's
performance of the Services.  In addition, Farmer Mac agrees that FCWNY
shall have no liability for, and shall be fully exculpated with respect to, any
Losses that Farmer Mac or any of its affiliates, or any of their respective
shareholders, directors, officers or employees or representatives may incur in
connection with, or in respect of, the Executive's performance of the
Services.

       

      Section
6.    Termination of Secondment
Agreement.  This Secondment Agreement shall terminate upon the
earlier to occur of (a) the termination of the Executive's status as interim CEO
of Farmer Mac for any reason, or (b) the Executive's termination as an employee
of FCWNY for any reason.

      

      Section
7.    Miscellaneous.

       

      (a)         Entire
Agreement.  This Secondment Agreement sets forth the entire
agreement and understanding of the parties concerning the subject matter hereof
and supersedes all prior agreements, arrangements and understandings between
FCWNY and Farmer Mac concerning such subject matter.  No
representation, promise, inducement or statement of intention has been made by
or on behalf of either party hereto that is not set forth in this Secondment
Agreement or the documents referred to herein.  This Secondment
Agreement may not be amended or modified except by a written instrument
specifically referring to this Secondment Agreement executed by the parties
hereto.

      

      (b)         Waiver.  The
failure of either Party hereto at any time or from time to time to require
performance of any of the other party's obligations under this Agreement shall
in no manner affect the right to enforce any provision of this Agreement at a
subsequent time, and the waiver of any rights arising out of any breach shall
not be construed as a waiver of any rights arising out of any subsequent
breach.

      

      (c)         No Third Party
Beneficiary.  The terms and provisions of this Secondment Agreement
are intended solely for the benefit of each Party hereto, and it is not the
intention of the Parties to confer third-party beneficiary rights upon any other
person.

      

      (d)         No Assignment. 
Neither this Secondment Agreement nor any right, interest or obligation
hereunder may be assigned by any Party hereto without the prior written consent
of the other Party.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (e)         Headings.  The
headings used in this Secondment Agreement have been inserted for convenience of
reference only and do not define or limit the provisions hereof.

      

      (f)         
Severability. 
In the event that any provision of this Secondment Agreement shall be determined
by a court of competent jurisdiction to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

      

      (g)         Governing Law. 
This Secondment Agreement shall be governed by and construed and enforced in
accordance with federal law and, to the extent federal law incorporates state
law, that law shall be the laws of the State of New York applicable to a
contract executed and performed in such state, without regard to its principles
of conflicts of laws.

      

      

      IN
WITNESS WHEREOF, the undersigned have executed this Secondment Agreement as of
the Effective Date.

      

      
        
          
            
              
                
                  	
                          FARM
      CREDIT OF WESTERN NEW YORK

                        	 
      	
                          FARMER
      MAC

                        
	 	 	 	 	 
	 	 	 	 	 
	
                          By:

                        	
                          /s/
      C. Scott Herring

                        	 
      	
                          By:

                        	
                          /s/
      Lowell L. Junkins

                        
	 
      	 
      	 
      	 
      	 
      
	
                          Name:

                        	
                          C.
      Scott Herring

                        	 
      	
                          Name:

                        	
                          Lowell
      L. Junkins

                        
	 
      	 
      	 
      	 
      	 
      
	
                          Title:

                        	
                          President

                        	 
      	
                          Title:

                        	
                          Vice
      Chairman and Acting Chairman of the
Board

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