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Exhibit 4.6 

DESCRIPTION OF THE REGISTRANT'S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

Gladstone Land Corporation (which we refer to as “we,” “us,” or the “Company”) has three classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): our common stock, par value $0.001 per share (“common stock”); our 6.00% Series B Cumulative Redeemable Preferred Stock, par value $0.001 per share (“Series B Preferred Stock”); and our 5.00% Series D Cumulative Term Preferred Stock, par value $0.001 per share (“Series D Preferred Stock”). Our 6.00% Series C Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock”), is not registered under Section 12 of the Exchange Act.

We collectively refer to our Series B Preferred Stock, our Series C Preferred Stock, and our Series D Preferred Stock as our “Preferred Stock,” where appropriate. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Annual Report on Form 10-K to which this Description of Securities is an exhibit.

DESCRIPTION OF CAPITAL STOCK
General

Our authorized capital stock consists of 100,000,000 shares of capital stock, $0.001 par value per share, 63,944,073 of which are classified as common stock, 6,456,065 of which are classified as Series B Preferred Stock, 25,999,862 of which are classified as Series C Preferred Stock and 3,600,000 of which are classified as Series D Preferred Stock. Under our charter, our board of directors is authorized to classify and reclassify any unissued shares of capital stock into other classes or series of stock by setting or changing in any one or more respects, from time to time before issuance of such stock, the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms and conditions of redemption of such stock. In addition, our board of directors, with the approval of a majority of the entire board and without any action by our stockholders, may amend our charter from time to time to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that we have authority to issue.

The following summary description of our capital stock is not necessarily complete and is qualified in its entirety by reference to our charter and bylaws, as amended, each of which has been filed with the Securities and Exchange Commission, as well as applicable provisions of the General Corporation Law of the State of Maryland (the “MGCL”).

Meetings and Special Voting Requirements

An annual meeting of the stockholders is held each year for the purpose of electing the class of directors whose term is up for election and to conduct other business that may be brought before the stockholders. Special meetings of stockholders may be called upon the request of our chairman, our chief executive officer, our president, a majority of our directors or a majority of our independent directors or by the written request of stockholders of record as of the request date entitled to cast not less than a majority of all votes entitled to be cast at such meeting, provided that the request is in the form and manner specified in our Bylaws. In general, the presence in person or by proxy of a majority of the outstanding shares entitled to vote at the meeting constitutes a quorum. Generally, the affirmative vote of a majority of the votes cast at a meeting at which a quorum is present is necessary to take stockholder action, except that a plurality of all votes cast at such a meeting is sufficient to elect any director.

Under the MGCL, a Maryland corporation generally cannot dissolve, amend its charter, merge, convert or consolidate with another entity, sell all or substantially all of its assets or engage in a statutory share exchange unless the action is declared advisable by its board of directors and approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter, unless a lesser percentage (but not less than a majority of all of the votes entitled to be cast on the matter) is specified in the corporation’s charter. Our charter provides that these actions (other than certain amendments to the provisions of our charter related to the removal of directors and the restrictions on ownership and transfer of our stock, and the vote required to amend such provisions, which must be approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the amendment) may be approved by a majority of all of the votes entitled to be cast on the matter.

Common Stock

Voting Rights 

Subject to the provisions of our charter regarding restrictions on the transfer and ownership of our capital stock and except as may otherwise be specified in the terms of any class or series of common stock, each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders, including the election of directors, and, except as provided with respect to any other class or series of capital stock, including our Preferred Stock, the holders of the common stock possess the exclusive voting power. There is no cumulative voting in the election of directors, which means that the holders of a majority of the outstanding common stock, voting as a single class, can elect all of the directors then standing for election and the holders of the remaining shares are not able to elect any directors. 

Dividends, Liquidations and Other Rights 

All shares of common stock offered and sold will be duly authorized, fully paid and nonassessable. Holders of our common stock are entitled to receive dividends when authorized by our board of directors and declared by us out of assets legally available for the payment of dividends. They also are entitled to share ratably in our assets legally available for distribution to our stockholders in the event of our liquidation, dissolution or winding up, after payment of or adequate provision for all of our known debts and liabilities. These rights are subject to the preferential rights of any other class or series of our shares, including our Preferred Stock, and to the provisions of our charter regarding restrictions on transfer of our shares. 

Holders of our common stock have no preference, conversion, exchange, sinking fund, redemption or appraisal rights and have no preemptive rights to subscribe for any of our securities. Subject to the restrictions on transfer of shares contained in our charter, all shares of common stock have equal dividend, liquidation and other rights. 

Certificates

Generally, we will not issue stock certificates. Shares of common stock will be held in “uncertificated” form, which will eliminate the physical handling and safekeeping responsibilities inherent in owning transferable stock certificates and eliminate the need to return a duly executed stock certificate to the transfer agent to effect a transfer. Transfers can be effected simply by mailing to us a duly executed transfer form. Upon the issuance of shares of common stock, we will send on request to each stockholder a written statement which will include all information that is required to be written upon stock certificates pursuant to the MGCL.

Transfer Agent and Registrar

The transfer and distribution paying agent and registrar for our common stock is Computershare, Inc.

Series B Preferred Stock 

Dividends 

Holders of shares of the Series B Preferred Stock are entitled to receive, when, as and if authorized by our Board of Directors (or a duly authorized committee of the board) and declared by us, out of funds legally available for the payment of dividends, preferential cumulative cash dividends at the rate of 6.00% per annum of the liquidation preference of $25.00 per share (equivalent to a fixed annual amount of $1.50 per share). Holders of the Series B Preferred Stock are not eligible to participate in the Company’s dividend reinvestment plan. Dividends on shares of the Series B Preferred Stock will accrue and be paid on the basis of a 360-day year consisting of twelve 30-day months. Dividends on outstanding shares of the Series B Preferred Stock will accrue and be cumulative from the end of the most recent dividend period for which dividends have been paid or, if no dividends have been paid, from the date of issuance. Dividends are payable monthly in arrears on such date as our Board of Directors may designate to holders of record as they appear in our stock records at the close of business on the applicable record date. The record date for each dividend will be designated by our Board of Directors and will be a date that is prior to the dividend payment date. 

Our Board of Directors will not authorize, and we will not declare, pay or set apart for payment, any dividends on shares of Series B Preferred Stock at any time that the terms and provisions of any of our agreements, including any agreement relating to our indebtedness, prohibits that action or provides that the authorization, declaration, payment or setting apart for payment of those dividends would constitute a breach of or a default under any such agreement, or if such action is restricted or prohibited by law. 

Notwithstanding the foregoing, dividends on the Series B Preferred Stock will accumulate whether or not (1) restrictions exist in respect thereof, (2) we have earnings, (3) there are funds legally available for the payment of such dividends, or (4) our Board of Directors authorizes or we declare such dividends. Accumulated but unpaid dividends on the Series B Preferred Stock will not bear interest, and holders of the Series B Preferred Stock will not be entitled to any distributions in excess of full cumulative dividends described above. 

If we do not declare and either pay or set apart for payment the full cumulative dividends on the Series B Preferred Stock and all shares of capital stock that are equal in rank with Series B Preferred Stock (including shares of the Series C Preferred Stock and Series D Preferred Stock), the amount which we have declared will be allocated ratably to the Series B Preferred Stock and to each series of shares of capital stock equal in rank so that the amount declared for each share of Series B Preferred Stock and for each share of each series of capital stock equal in rank is proportionate to the accrued and unpaid dividends on those shares. 

Except as provided in the immediately preceding paragraph, unless full cumulative dividends on the Series B Preferred Stock have been or contemporaneously are declared and paid (or declared and a sum sufficient for the payment is set apart for payment) for all past dividend periods, no dividends (other than in shares of common stock or other shares of capital stock ranking junior to the Series B Preferred Stock as to dividends and upon liquidation) will be declared and paid or declared and set apart for payment nor will any other distribution be declared and made upon our common stock, or any of our other capital stock ranking junior to or equal with the Series B Preferred Stock as to dividends or upon liquidation, nor will we redeem, purchase, or otherwise acquire for any consideration (or pay or make any monies available for a sinking fund for the redemption of any such shares) any shares of our common stock, or any other shares of our capital stock ranking junior to or equal with the Series B Preferred Stock as to dividends or upon liquidation (except by conversion into or exchange for any of our capital stock ranking junior to the Series B Preferred Stock as to dividends and upon liquidation or redemption for the purpose of preserving our qualification as a REIT). 

Ranking 

The Series B Preferred Stock ranks, with respect to dividend rights and rights upon our liquidation, winding-up or dissolution: 

•senior to all classes or series of our common stock and any future class or series of our capital stock expressly designated as ranking junior to the Series B Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or winding up; 

•on parity with our Series C Preferred Stock and Series D Preferred Stock and any future class or series of our capital stock expressly designated as ranking on parity with the Series B Preferred Stock with respect to dividend rights and rights upon liquidation, dissolution or winding up; 

•junior to any future class or series of our capital stock expressly designated as ranking senior to the Series B Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or winding up, none of which exists on the date hereof; and 

••junior to all of our existing and future indebtedness.

Redemption by Stockholders 

Optional Redemption Following Death of a Holder 

Subject to the restrictions described under “-Stockholder Redemption Option,” and the terms and procedures described below under “-Redemption Procedures,” commencing on the date of original issuance and terminating upon the listing of the Series B Preferred Stock on Nasdaq or another national securities exchange, shares of Series B Preferred Stock held by a natural person upon his or her death will be redeemed at the written request of the holder’s estate for a cash payment of $25.00 per share of Series B Preferred Stock on the Death Redemption Date, which is the tenth calendar day following delivery of such holder’s estate’s request to redeem shares of the Series B Preferred Stock, or if such tenth calendar day is not a business day, on the next succeeding business day. 

Stockholder Redemption Option 

Subject to the restrictions described herein, and the terms and procedures described below under “-Redemption Procedures,” commencing on the date of original issuance (or, if after the date of original issuance our Board of Directors suspends the redemption program of the holders of the Series B Preferred Stock, on the date our Board of Directors reinstates such program) and terminating on the earlier to occur of (1) the date upon which our Board of 
Directors, by resolution, suspends or terminates the redemption program, and (2) the date on which shares of the Series B Preferred Stock are listed on Nasdaq or another national securities exchange, holders of the Series B Preferred Stock may, at their option, require us to redeem any or all of their shares of Series B Preferred Stock for a cash payment of $22.50 per share of Series B Preferred Stock on the Stockholder Redemption Date, which is the tenth calendar day following delivery of such holder’s request to redeem shares of the Series B Preferred Stock, or if such tenth calendar day is not a business day, on the next succeeding business day. The maximum dollar amount that we will make available each calendar year to redeem shares of Series B Preferred Stock will not be subject to an annual limit; provided, that our obligation to redeem shares of Series B Preferred Stock is limited to the extent that our Board of Directors determines, in its sole and absolute discretion, that we do not have sufficient funds available to fund any such redemption or we are restricted by applicable law from making such redemption; and is also limited to the extent our Board of Directors suspends or terminates the optional redemption right at any time or for any reason, including after delivery of a Stockholder Redemption Notice but prior to the corresponding Stockholder Redemption Date. 

Redemption Procedures 

To require us to redeem shares of Series B Preferred Stock, a holder or estate of a holder, as applicable, must deliver a notice of redemption, by overnight delivery or by first class mail, postage prepaid to us at our principal executive offices. Each such notice must be an original, notarized copy and must state: (1) the name and address of the stockholder whose shares of Series B Preferred Stock are requested to be redeemed, (2) the number of shares of Series B Preferred Stock requested to be redeemed, (3) the name of the broker dealer who holds the shares of Series B Preferred Stock requested to be redeemed, the stockholder’s account number with such broker dealer and such broker dealer’s participant number for DTC and (4) in the case of a notice to redeem upon the death of a holder, a certified copy of the death certificate (and such other evidence that is satisfactory to us in our sole discretion) for the natural person who previously held the shares to be redeemed. 

If, as a result of the limitations described under “-Stockholder Redemption Option,” the optional redemption right has not been suspended or terminated but fewer than all shares for which a notice of redemption was delivered to us are to be redeemed, the number of shares to be redeemed will be pro rata based on the number of shares of Series B Preferred Stock for which each holder timely submitted a notice of redemption. If a Stockholder Redemption Date is also a Death Redemption Date, the limitations described under “-Stockholder Redemption Option” shall first be applied to any redemption requested upon the death of the holder and then to shares to be redeemed pursuant to the Stockholder Redemption Option. 

Upon any redemption of shares of Series B Preferred Stock, the holder thereof will also be entitled to receive a sum equal to all accumulated and unpaid dividends on such shares to, but excluding, the applicable Stockholder Redemption Date or Death Redemption Date (unless such Stockholder Redemption Date or Death Redemption Date falls after a dividend record date and on or prior to the corresponding dividend payment date, in which case each holder of shares of Series B Preferred Stock on such dividend record date will be entitled to the dividend payable on such shares on the corresponding dividend payment date, notwithstanding the redemption of such shares on or prior to such dividend payment date, and each holder of shares of Series B Preferred Stock that are redeemed on such Stockholder Redemption Date or Death Redemption Date will be entitled to the dividends, if any, occurring after the end of the dividend period to which such dividend payment date relates up to, but excluding, the Stockholder Redemption Date or Death Redemption Date, as the case may be). Upon the redemption of any shares of Series B Preferred Stock, such shares of Series B Preferred Stock will cease to be outstanding, dividends with respect to such shares of Series B Preferred Stock will cease to accumulate and all rights whatsoever with respect to such shares (except the right to receive the per share cash payment for the redeeming shares) will terminate. 

We may suspend or terminate the redemption program at any time in our sole discretion. 

Optional Redemption by the Company 

Except in certain limited circumstances relating to maintaining our qualification as a REIT as described in “-Restrictions on Ownership and Transfer,” we cannot redeem the Series B Preferred Stock prior to the later of (1) first anniversary of the Termination Date and (2) June 1, 2022. 

On and after the later of (1) first anniversary of the Termination Date and (2) June 1, 2022, at our sole option upon not less than 30 nor more than 60 days’ written notice, we may redeem shares of the Series B Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus an amount 

equal to all accumulated and unpaid dividends on such shares to, but excluding, the date fixed for redemption, without interest. Holders of Series B Preferred Stock to be redeemed must then surrender such Series B Preferred Stock at the place designated in the notice. Upon surrender of the Series B Preferred Stock, the holders will be entitled to the redemption price. If notice of redemption of any shares of Series B Preferred Stock has been given and if we have deposited the funds necessary for such redemption with the paying agent for the benefit of the holders of any of the shares of Series B Preferred Stock to be redeemed, then from and after the redemption date, dividends will cease to accumulate on those shares of Series B Preferred Stock, those shares of Series B Preferred Stock will no longer be deemed outstanding and all rights of the holders of such shares will terminate, except the right to receive the redemption price. If less than all of the outstanding Series B Preferred Stock is to be redeemed, the Series B Preferred Stock to be redeemed will be selected (1) pro rata, (2) by lot or (3) by any other fair and equitable method that our Board of Directors may choose. 

Unless full cumulative dividends for all applicable past dividend periods on all shares of Series B Preferred Stock and any shares of stock that rank on parity with regards to dividends and upon liquidation have been or contemporaneously are declared and paid (or declared and a sum sufficient for payment set apart for payment), no shares of Series B Preferred Stock will be redeemed. In such event, we also will not purchase or otherwise acquire directly or indirectly any shares of Series B Preferred Stock (except by exchange for our capital stock ranking junior to the Series B Preferred Stock as to dividends and upon liquidation). However, the foregoing will not prevent us from purchasing shares pursuant to our charter, in order to ensure that we continue to meet the requirements for qualification as a REIT, or from acquiring shares of Series B Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding shares of Series B Preferred Stock and any shares of stock that rank on parity with regards to dividends and upon liquidation. So long as no dividends are in arrears, we will be entitled at any time and from time to time to repurchase shares of Series B Preferred Stock in open-market transactions duly authorized by the Board of Directors and effected in compliance with applicable laws. 

We will deliver a notice of redemption, by overnight delivery, by first class mail, postage prepaid or electronically to holders thereof, or request our agent, on behalf of us, to promptly do so by overnight delivery, by first class mail, postage prepaid or electronically. The notice will be provided not less than 30 nor more than 60 days prior to the date fixed for redemption in such notice. Each such notice will state: (1) the date for redemption; (2) the number of Series B Preferred Stock to be redeemed; (3) the CUSIP number for the Series B Preferred Stock; (4) the applicable redemption price on a per share basis; (5) if applicable, the place or places where the certificate(s) for such shares are to be surrendered for payment of the price for redemption; (6) that dividends on the Series B Preferred Stock to be redeemed will cease to accumulate from and after such date of redemption; and (7) the applicable provisions of our charter under which such redemption is made. If fewer than all shares held by any holder are to be redeemed, the notice delivered to such holder will also specify the number of Series B Preferred Stock to be redeemed from such holder or the method of determining such number. We may provide in any such notice that such redemption is subject to one or more conditions precedent and that we will not be required to effect such redemption unless each such condition has been satisfied at the time or times and in the manner specified in such notice. No defect in the notice or delivery thereof will affect the validity of redemption proceedings, except as required by applicable law. 

If a redemption date falls after a record date and on or prior to the corresponding dividend payment date, each holder of Series B Preferred Stock at the close of business on that record date will be entitled to the dividend payable on such shares on the corresponding dividend payment date notwithstanding the redemption of such shares before the dividend payment date, and the redemption price received by the holder on the redemption date will be $25.00 per share. 

Liquidation Preference 

In the event of our voluntary or involuntary liquidation, dissolution or winding up, the holders of shares of Series B Preferred Stock will be entitled to be paid, out of our assets legally available for distribution to our stockholders, a liquidation preference of $25.00 per share, plus an amount equal to any accumulated and unpaid dividends on such shares to, but excluding, the date of payment, but without interest, before any distribution of assets is made to holders of our common stock or any other class or series of our capital stock that ranks junior to the Series B Preferred Stock as to liquidation rights. If our assets legally available for distribution to stockholders are insufficient to pay in full the liquidation preference on the Series B Preferred Stock and the liquidation preference on any shares of preferred stock equal in rank with the Series B Preferred Stock, all assets distributed to the holders of the Series B Preferred Stock and any other series of preferred stock equal in rank with the Series B Preferred Stock will be distributed ratably so that the amount of assets distributed per share of Series B Preferred Stock and such other series of preferred stock equal in rank with the Series B Preferred Stock will in all cases bear to each other the same ratio that the liquidation preference per share on the Series B Preferred Stock and on such other series of preferred stock bear to each other. Written notice of any such liquidation, dissolution or winding up of us, stating the payment date or dates when, and the place or places where, the amounts distributable in such circumstances will be payable, will be given by first class mail, postage pre-paid, not less than 30 nor more than 60 days prior to the payment date stated therein, to each record holder of the Series B Preferred Stock at the respective addresses of such holders as the same 

appear on the stock transfer records of the Company. After payment of the full amount of the liquidation preference, plus any accumulated and unpaid dividends to which they are entitled, the holders of Series B Preferred Stock will have no right or claim to any of our remaining assets. If we convert into or consolidate or merge with or into any other corporation, trust or entity, effect a statutory share exchange or sell, lease, transfer or convey all or substantially all of our property or business, we will not be deemed to have liquidated, dissolved or wound up. 

Voting Rights 

Holders of the Series B Preferred Stock do not have any voting rights, except as described below. 
Whenever dividends on any shares of Series B Preferred Stock are in arrears for 18 or more consecutive months (a “Dividend Default”), then the holders of those shares together with the holders of all other series of preferred stock equal in rank with the Series B Preferred Stock upon which like voting rights have been conferred and are exercisable, will be entitled to vote separately as a class for the election of a total of two additional directors on our Board of Directors. 

The election of these directors will take place at a special meeting called upon the written request of the holders of record of at least 20% of the outstanding shares of Series B Preferred Stock or holders of record of at least 20% of any class or series of preferred stock equal in rank with the Series B Preferred Stock which like voting rights have been conferred and are exercisable (unless such request is received less than 90 days before the date fixed for the next annual or special meeting of stockholders) or at the next annual meeting of stockholders, and at each subsequent annual meeting until all dividends accumulated from past dividend periods and the then current dividend period have been paid (or declared and a sum sufficient for payment set apart). A quorum for any such meeting will exist if at least a majority of the total outstanding shares of Series B Preferred Stock and outstanding shares of preferred stock equal in rank with the Series B Preferred Stock entitled to like voting rights are represented in person or by proxy at that meeting. The directors elected as described above will be elected upon the affirmative vote of a plurality of the votes cast by the holders of shares of Series B Preferred Stock and preferred stock equal in rank with the Series B Preferred Stock, voting separately as a single class, present and voting in person or by proxy at a duly called and held meeting at which a quorum is present. If and when all accumulated dividends and the dividend for the then current dividend period on the Series B Preferred Stock have been paid in full or declared or set apart for payment in full the holders of the Series B Preferred Stock will be divested of the right to elect directors and, if all dividend arrearages have been paid in full or declared and set apart for payment in full on all series of preferred stock entitled to like voting rights, the term of office of each director so elected will terminate. Any director so elected may be removed at any time with or without cause by, and may not be removed otherwise than by the vote 
of, the holders of record of a majority of the outstanding shares of the Series B Preferred Stock having the voting rights described above, voting separately as a single class with all classes or series of preferred stock entitled to like voting rights. So long as a dividend arrearage continues, any vacancy in the office of a director elected as described above may be filled by written consent of the director elected as described above who remains in office, or if none remains in office, by a vote of the holders of record of the outstanding shares of Series B Preferred Stock when they have the voting rights described above, voting separately as a single class with all classes or series of preferred stock entitled to like voting rights, by majority vote. These directors will each be entitled to one vote per director on any matter. 

So long as any shares of Series B Preferred Stock remain outstanding, we will not, without the affirmative vote or consent of the holders of at least two-thirds of the shares of the Series B Preferred Stock outstanding at the time, given in person or by proxy, either in writing or at a meeting (voting separately as a class), amend, alter or repeal the provisions of our charter, including the articles supplementary designating the Series B Preferred Stock, whether by merger, consolidation or otherwise, so as to materially and adversely affect any right, preference, privilege or voting power of the Series B Preferred Stock. However, with respect to the occurrence of any event listed above, so long as the Series B Preferred Stock remains outstanding (or shares issued by a surviving entity in substitution for the Series B Preferred Stock) with its terms materially unchanged, taking into account that upon the occurrence of such an event, we may not be the surviving entity, the occurrence of any such event will not be deemed to materially and adversely affect such rights, preferences, privileges or voting power of holders of the Series B Preferred Stock. In addition (i) any increase in the number of authorized shares of Series B Preferred Stock, (ii) any increase in the number of authorized shares of preferred stock or the creation or issuance of any other class or series of preferred stock or (iii) any increase in the number of authorized shares of such class or series, in each case ranking equal with or junior to the Series B Preferred Stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up, will not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers. 

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required is effected, all outstanding shares of Series B Preferred Stock have been redeemed or called for redemption upon proper notice and sufficient funds have been deposited in trust to effect such redemption.

Transfer Agent and Registrar

The transfer agent and registrar for the Series B Preferred Stock is Computershare, Inc.

Series C Preferred Stock 

Dividends 

Holders of shares of the Series C Preferred Stock will be entitled to receive, when, as and if authorized by our Board of Directors (or a duly authorized committee of the board) and declared by us, out of funds legally available for the payment of dividends, preferential cumulative cash dividends at the rate of 6.00% per annum of the liquidation preference of $25.00 per share (equivalent to a fixed annual amount of $1.50 per share). Generally, holders of the Series C Preferred Stock are not eligible to participate in the Company’s dividend reinvestment plan, except that each registered holder of at least one full share of Series C Preferred Stock will be automatically enrolled in our Series C Preferred Stock dividend reinvestment plan unless the stockholder opts out of the dividend reinvestment plan.

Dividends on shares of the Series C Preferred Stock will accrue and be paid on the basis of a 360-day year consisting of twelve 30-day months. Dividends on outstanding shares of the Series C Preferred Stock will accrue and be cumulative from the end of the most recent dividend period for which dividends have been paid or, if no 
dividends have been paid, from the date of issuance. Dividends will be payable monthly in arrears, on or about the fifth day of each month for dividends accrued the previous month or such other date as our Board of Directors may designate, to holders of record as they appear in our stock records at the close of business on the applicable record date. The record date for each dividend will be designated by our Board of Directors and will be a date that is prior to the dividend payment date. 

Our Board of Directors will not authorize, and we will not declare, pay or set apart for payment, any dividends on shares of Series C Preferred Stock at any time that the terms and provisions of any of our agreements, including any agreement relating to our indebtedness, prohibits that action or provides that the authorization, declaration, payment or setting apart for payment of those dividends would constitute a breach of or a default under any such agreement, or if such action is restricted or prohibited by law. 

Notwithstanding the foregoing, dividends on the Series C Preferred Stock will accumulate whether or not (1) restrictions exist in respect thereof, (2) we have earnings, (3) there are funds legally available for the payment of such dividends, or (4) our Board of Directors authorizes or we declare such dividends. Accumulated but unpaid dividends on the Series C Preferred Stock will not bear interest, and holders of the Series C Preferred Stock will not be entitled to any distributions in excess of full cumulative dividends described above. 

If we do not declare and either pay or set apart for payment the full cumulative dividends on the Series C Preferred Stock and all shares of capital stock that are equal in rank with Series C Preferred Stock (including shares of the Series B Preferred Stock and Series D Preferred Stock), the amount which we have declared will be allocated ratably to the Series C Preferred Stock and to each series of shares of capital stock equal in rank so that the amount declared for each share of Series C Preferred Stock and for each share of each series of capital stock equal in rank is proportionate to the accrued and unpaid dividends on those shares. 

Except as provided in the immediately preceding paragraph, unless full cumulative dividends on the Series C Preferred Stock have been or contemporaneously are declared and paid (or declared and a sum sufficient for the payment is set apart for payment) for all past dividend periods, no dividends (other than in shares of common stock or other shares of capital stock ranking junior to the Series C Preferred Stock as to dividends and upon liquidation) will be declared and paid or declared and set apart for payment nor will any other distribution be declared and made upon our common stock, or any of our other capital stock ranking junior to or equal with the Series C Preferred Stock as to dividends or upon liquidation, nor will we redeem, purchase, or otherwise acquire for any consideration (or pay or make any monies available for a sinking fund for the redemption of any such shares) any shares of our common stock, or any other shares of our capital stock ranking junior to or equal with the Series C Preferred Stock as to dividends or upon liquidation (except by conversion into or exchange for any of our capital stock ranking junior to the Series C Preferred Stock as to dividends and upon liquidation or redemption for the purpose of preserving our qualification as a REIT). 

Ranking 

The Series C Preferred Stock ranks, with respect to dividend rights and rights upon our liquidation, winding-up or dissolution: 

•senior to all classes or series of our common stock and any future class or series of our capital stock expressly designated as ranking junior to the Series C Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or winding up; 

•on parity with our Series B Preferred Stock and Series D Preferred Stock and any future class or series of our capital stock expressly designated as ranking on parity with the Series C Preferred Stock with respect to dividend rights and rights upon liquidation, dissolution or winding up; 

•junior to any future class or series of our capital stock expressly designated as ranking senior to the Series C Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or winding up, none of which exists on the date hereof; and 

•junior to all of our existing and future indebtedness.

Redemption by Stockholders 

Optional Redemption Following Death of a Holder 

Subject to the restrictions described under “-Stockholder Redemption Option,” and the terms and procedures described below under “-Redemption Procedures,” commencing on the date of original issuance and terminating upon the listing of the Series C Preferred Stock on Nasdaq or another national securities exchange, shares of Series C Preferred Stock held by a natural person upon his or her death will be redeemed at the written request of the holder’s estate for a cash payment of $25.00 per share of Series C Preferred Stock on the Death Redemption Date, which is the tenth calendar day following delivery of such holder’s estate’s request to redeem shares of the Series C Preferred Stock, or if such tenth calendar day is not a business day, on the next succeeding business day. 

Stockholder Redemption Option 

Subject to the restrictions described herein, and the terms and procedures described below under “-Redemption Procedures,” commencing on the date of original issuance (or, if after the date of original issuance our Board of Directors suspends the redemption program of the holders of the Series C Preferred Stock, on the date our Board of Directors reinstates such program) and terminating on the earlier to occur of (1) the date upon which our Board of Directors, by resolution, suspends or terminates the redemption program, and (2) the date on which shares of the Series C Preferred Stock are listed on Nasdaq or another national securities exchange, holders of the Series C Preferred Stock may, at their option, require us to redeem any or all of their shares of Series C Preferred Stock for a cash payment of $22.50 per share of Series C Preferred Stock on the Stockholder Redemption Date, which is the tenth calendar day following delivery of such holder’s request to redeem shares of the Series C Preferred Stock, or if such tenth calendar day is not a business day, on the next succeeding business day. The maximum dollar amount that we will make available each calendar year to redeem shares of Series C Preferred Stock will not be subject to an annual limit; provided, that our obligation to redeem shares of Series C Preferred Stock is limited to the extent that our Board of Directors determines, in its sole and absolute discretion, that we do not have sufficient funds available to fund any such redemption or we are restricted by applicable law from making such redemption; and is also limited to the extent our Board of Directors suspends or terminates the optional redemption right at any time or for any reason, including after delivery of a Stockholder Redemption Notice but prior to the corresponding Stockholder Redemption Date. 

Redemption Procedures 

To require us to redeem shares of Series C Preferred Stock, a holder or estate of a holder, as applicable, must deliver a notice of redemption, by overnight delivery or by first class mail, postage prepaid to us at our principal executive offices. Each such notice must be an original, notarized copy and must state: (1) the name and address of the stockholder whose shares of Series C Preferred Stock are requested to be redeemed, (2) the number of shares of Series C Preferred Stock requested to be redeemed, (3) the name of the broker dealer who holds the shares of Series C Preferred Stock requested to be redeemed, the stockholder’s account number with such broker dealer and such broker dealer’s participant number for DTC and (4) in the case of a notice to redeem upon the death of a holder, a certified copy of the death certificate (and such other evidence that is satisfactory to us in our sole discretion) for the natural person who previously held the shares to be redeemed. 

If, as a result of the limitations described under “-Stockholder Redemption Option,” the optional redemption right has not been suspended or terminated but fewer than all shares for which a notice of redemption was delivered to us 
are to be redeemed, the number of shares to be redeemed will be pro rata based on the number of shares of Series C Preferred Stock for which each holder timely submitted a notice of redemption. If a Stockholder Redemption Date is also a Death Redemption Date, the limitations described under “-Stockholder Redemption Option” shall first be applied to any redemption requested upon the death of the holder and then to shares to be redeemed pursuant to the Stockholder Redemption Option. 

Upon any redemption of shares of Series C Preferred Stock, the holder thereof will also be entitled to receive a sum equal to all accumulated and unpaid dividends on such shares to, but excluding, the applicable Stockholder Redemption Date or Death Redemption Date (unless such Stockholder Redemption Date or Death Redemption Date falls after a dividend record date and on or prior to the corresponding dividend payment date, in which case each holder of shares of Series C Preferred Stock on such dividend record date will be entitled to the dividend payable on such shares on the corresponding dividend payment date, notwithstanding the redemption of such shares on or prior to such dividend payment date, and each holder of shares of Series C Preferred Stock that are redeemed on such Stockholder Redemption Date or Death Redemption Date will be entitled to the dividends, if any, occurring after the end of the dividend period to which such dividend payment date relates up to, but excluding, the Stockholder Redemption Date or Death Redemption Date, as the case may be). Upon the redemption of any shares of Series C Preferred Stock, such shares of Series C Preferred Stock will cease to be outstanding, dividends with respect to such shares of Series C Preferred Stock will cease to accumulate and all rights whatsoever with respect to such shares (except the right to receive the per share cash payment for the redeeming shares) will terminate. 

We may suspend or terminate the redemption program at any time in our sole discretion. 

Optional Redemption by the Company 

Except in certain limited circumstances relating to maintaining our qualification as a REIT as described in “-Restrictions on Ownership and Transfer,” we cannot redeem the Series C Preferred Stock prior to the later of (1) first anniversary of the Termination Date and (2) June 1, 2024. 

On and after the later of (1) first anniversary of the Termination Date and (2) June 1, 2024, at our sole option upon not less than 30 nor more than 60 days’ written notice, we may redeem shares of the Series C Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus an amount equal to all accumulated and unpaid dividends on such shares to, but excluding, the date fixed for redemption, without interest. Holders of Series C Preferred Stock to be redeemed must then surrender such Series C Preferred Stock at the place designated in the notice. Upon surrender of the Series C Preferred Stock, the holders will be entitled to the redemption price. If notice of redemption of any shares of Series C Preferred Stock has been given and if we have deposited the funds necessary for such redemption with the paying agent for the benefit of the holders of any of the shares of Series C Preferred Stock to be redeemed, then from and after the redemption date, dividends will cease to accumulate on those shares of Series C Preferred Stock, those shares of Series C Preferred Stock will no longer be deemed outstanding and all rights of the holders of such shares will terminate, except the right to receive the redemption price. If less than all of the outstanding Series C Preferred Stock is to be redeemed, the Series C Preferred Stock to be redeemed will be selected (1) pro rata, (2) by lot or (3) by any other fair and equitable method that our Board of Directors may choose. 

Unless full cumulative dividends for all applicable past dividend periods on all shares of Series C Preferred Stock and any shares of stock that rank on parity with regards to dividends and upon liquidation have been or contemporaneously are declared and paid (or declared and a sum sufficient for payment set apart for payment), no shares of Series C Preferred Stock will be redeemed. In such event, we also will not purchase or otherwise acquire directly or indirectly any shares of Series C Preferred Stock (except by exchange for our capital stock ranking junior to the Series C Preferred Stock as to dividends and upon liquidation). However, the foregoing will not prevent us from purchasing shares pursuant to our charter, in order to ensure that we continue to meet the requirements for qualification as a REIT, or from acquiring shares of Series C Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding shares of Series C Preferred Stock and any shares of 
stock that rank on parity with regards to dividends and upon liquidation. Upon listing, if any, of the Series C Preferred Stock on Nasdaq or another national securities exchange, so long as no dividends are in arrears, we will be entitled at any time and from time to time to repurchase shares of Series C Preferred Stock in open-market transactions duly authorized by the Board of Directors and effected in compliance with applicable laws. 

We will deliver a notice of redemption, by overnight delivery, by first class mail, postage prepaid or electronically to holders thereof, or request our agent, on behalf of us, to promptly do so by overnight delivery, by first class mail, postage prepaid or electronically. The notice will be provided not less than 30 nor more than 60 days prior to the date fixed for redemption in such notice. Each such notice will state: (1) the date for redemption; (2) the number of 

shares of Series C Preferred Stock to be redeemed; (3) the CUSIP number for the Series C Preferred Stock; (4) the applicable redemption price on a per share basis; (5) if applicable, the place or places where the certificate(s) for such shares are to be surrendered for payment of the price for redemption; (6) that dividends on the Series C Preferred Stock to be redeemed will cease to accumulate from and after such date of redemption; and (7) the applicable provisions of our charter under which such redemption is made. If fewer than all shares held by any holder are to be redeemed, the notice delivered to such holder will also specify the number of Series C Preferred Stock to be redeemed from such holder or the method of determining such number. We may provide in any such notice that such redemption is subject to one or more conditions precedent and that we will not be required to effect such redemption unless each such condition has been satisfied at the time or times and in the manner specified in such notice. No defect in the notice or delivery thereof will affect the validity of redemption proceedings, except as required by applicable law. 

If a redemption date falls after a record date and on or prior to the corresponding dividend payment date, each holder of Series C Preferred Stock at the close of business on that record date will be entitled to the dividend payable on such shares on the corresponding dividend payment date notwithstanding the redemption of such shares before the dividend payment date, each holder of shares Series C Preferred Stock that are redeemed on such redemption date will be entitled to the dividends, if any, accruing after the end of the dividend period for which such dividend payment date relates up to, but excluding, the redemption date. 

Liquidation Preference 

In the event of our voluntary or involuntary liquidation, dissolution or winding up, the holders of shares of Series C Preferred Stock will be entitled to be paid, out of our assets legally available for distribution to our stockholders, a liquidation preference of $25.00 per share, plus an amount equal to any accumulated and unpaid dividends on such shares to, but excluding, the date of payment, but without interest, before any distribution of assets is made to holders of our common stock or any other class or series of our capital stock that ranks junior to the Series C Preferred Stock as to liquidation rights. If our assets legally available for distribution to stockholders are insufficient to pay in full the liquidation preference on the Series C Preferred Stock and the liquidation preference on any shares of preferred stock equal in rank with the Series C Preferred Stock, all assets distributed to the holders of the Series C Preferred Stock and any other series of preferred stock equal in rank with the Series C Preferred Stock will be distributed ratably so that the amount of assets distributed per share of Series C Preferred Stock and such other series of preferred stock equal in rank with the Series C Preferred Stock will in all cases bear to each other the same ratio that the liquidation preference per share on the Series C Preferred Stock and on such other series of preferred stock bear to each other. Written notice of any such liquidation, dissolution or winding up of us, stating the payment date or dates when, and the place or places where, the amounts distributable in such circumstances will be payable, will be given by first class mail, postage pre-paid, not less than 30 nor more than 60 days prior to the payment date stated therein, to each record holder of the Series C Preferred Stock at the respective addresses of such holders as the same appear on the stock transfer records of the Company. After payment of the full amount of the liquidation preference, plus any accumulated and unpaid dividends to which they are entitled, the holders of Series C Preferred Stock will have no right or claim to any of our remaining assets. If we convert into or consolidate or merge with or into any other corporation, trust or entity, effect a statutory share exchange or sell, lease, transfer or convey all or substantially all of our property or business, we will not be deemed to have liquidated, dissolved or wound up. 

Voting Rights 

Holders of the Series C Preferred Stock will not have any voting rights, except as described below. 
Whenever dividends on any shares of Series C Preferred Stock are in arrears for 18 or more consecutive months (a “Dividend Default”), then the holders of those shares together with the holders of all other series of preferred stock equal in rank with the Series C Preferred Stock upon which like voting rights have been conferred and are exercisable, will be entitled to vote separately as a class for the election of a total of two additional directors on our Board of Directors. 

The election of these directors will take place at a special meeting called upon the written request of the holders of record of at least 20% of the outstanding shares of Series C Preferred Stock or holders of record of at least 20% of any class or series of preferred stock equal in rank with the Series C Preferred Stock which like voting rights have been conferred and are exercisable (unless such request is received less than 90 days before the date fixed for the next annual or special meeting of stockholders) or at the next annual meeting of stockholders, and at each subsequent annual meeting until all dividends accumulated from past dividend periods and the then current dividend period have been paid (or declared and a sum sufficient for payment set apart). A quorum for any such meeting will exist if at least a majority of the total outstanding shares of Series C Preferred Stock and outstanding shares of preferred stock equal in rank with the Series C Preferred Stock entitled to like voting rights are represented in person or by proxy at that meeting. The directors elected as described above will be elected upon the affirmative vote of a plurality of the votes cast by the holders of shares of Series C Preferred Stock and preferred stock equal in rank with 

the Series C Preferred Stock, voting separately as a single class, present and voting in person or by proxy at a duly called and held meeting at which a quorum is present. If and when all accumulated dividends and the dividend for the then current dividend period on the Series C Preferred Stock have been paid in full or declared or set apart for payment in full the holders of the Series C Preferred Stock will be divested of the right to elect directors and, if all dividend arrearages have been paid in full or declared and set apart for payment in full on all series of preferred stock entitled to like voting rights, the term of office of each director so elected will terminate. Any director so elected may be removed at any time with or without cause by, and may not be removed otherwise than by the vote of, the holders of record of a majority of the outstanding shares of the Series C Preferred Stock having the voting rights described above, voting separately as a single class with all classes or series of preferred stock entitled to like voting rights. So long as a dividend arrearage continues, any vacancy in the office of a director elected as described above may be filled by written consent of the director elected as described above who remains in office, or if none remains in office, by a vote of the holders of record of the outstanding shares of Series C Preferred Stock when they have the voting rights described above, voting separately as a single class with all classes or series of preferred stock entitled to like voting rights, by majority vote. These directors will each be entitled to one vote per director on any matter. 

So long as any shares of Series C Preferred Stock remain outstanding, we will not, without the affirmative vote or consent of the holders of at least two-thirds of the shares of the Series C Preferred Stock outstanding at the time, given in person or by proxy, either in writing or at a meeting (voting separately as a class), amend, alter or repeal the provisions of our charter, including the articles supplementary designating the Series C Preferred Stock, whether by merger, consolidation or otherwise, so as to materially and adversely affect any right, preference, privilege or voting power of the Series C Preferred Stock. However, with respect to the occurrence of any event listed above, so long as the Series C Preferred Stock remains outstanding (or shares issued by a surviving entity in substitution for the Series C Preferred Stock) with its terms materially unchanged, taking into account that upon the occurrence of such an event, we may not be the surviving entity, the occurrence of any such event will not be deemed to materially and adversely affect such rights, preferences, privileges or voting power of holders of the Series C Preferred Stock. In addition (i) any increase in the number of authorized shares of Series C Preferred Stock, (ii) any increase in the number of authorized shares of preferred stock or the creation or issuance of any other class or series of preferred stock or (iii) any increase in the number of authorized shares of such class or series, in each case ranking equal with or junior to the Series C Preferred Stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up, will not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers. 

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required is effected, all outstanding shares of Series C Preferred Stock have been redeemed or called for redemption upon proper notice and sufficient funds have been deposited in trust to effect such redemption. 

Transfer Agent and Registrar

The transfer agent and registrar for the Series C Preferred Stock is Computershare, Inc.

Listing

We intend to apply to list the Series C Preferred Stock on Nasdaq within one calendar year of the Termination Date (as defined in the Articles Supplementary setting forth the terms of the Series C Preferred Stock). There can be no assurance that a listing will be achieved in such timeframe, or at all.

Series D Preferred Stock

Dividends 

Holders of shares of the Series D Preferred Stock are entitled to receive, when, as and if, authorized by our Board of Directors (or a duly authorized committee of the Board) and declared by us, out of funds legally available for the payment of dividends, preferential cumulative cash dividends at the rate of 5.00% per annum of the liquidation preference of $25.00 per share (equivalent to a fixed annual amount of $1.25 per share). 

Dividends on shares of the Series D Preferred Stock are cumulative from (but excluding) the date of original issue and are payable monthly in arrears, on or about the fifth day of each month for dividends accrued the previous month or such date as our Board of Directors may designate, to holders of record as they appear in our stock records at the close of business on the applicable record date. The record date for each dividend will be designated by our Board of Directors and will be a date that is prior to the dividend payment date. 

Our Board of Directors will not authorize, and we will not declare, pay or set apart for payment, any dividends on shares of Series D Preferred Stock at any time that the terms and provisions of any of our agreements, including any agreement relating to our indebtedness, prohibits that action or provides that the authorization, declaration, payment or setting apart for payment of those dividends would constitute a breach of or a default under any such agreement, or if such action is restricted or prohibited by law. 

Notwithstanding the foregoing, dividends on the Series D Preferred Stock will accumulate whether or not (1) restrictions exist in respect thereof, (2) we have earnings, (3) there are funds legally available for the payment of such dividends, or (4) our Board of Directors authorizes or we declare such dividends. Accumulated but unpaid dividends on the Series D Preferred Stock will not bear interest, and holders of the Series D Preferred Stock will not be entitled to any distributions in excess of full cumulative dividends described above. 

If we do not declare and either pay or set apart for payment the full cumulative dividends on the Series D Preferred Stock and all shares of capital stock that are equal in rank with Series D Preferred Stock (including shares of the Series B Preferred Stock and Series C Preferred Stock), the amount which we have declared will be allocated ratably to the Series D Preferred Stock and to each series of shares of capital stock equal in rank so that the amount declared for each share of Series D Preferred Stock and for each share of each series of capital stock equal in rank is proportionate to the accrued and unpaid dividends per share on those shares. 

Except as provided in the immediately preceding paragraph, unless full cumulative dividends on the Series D Preferred Stock have been or contemporaneously are declared and paid (or declared and a sum sufficient for the payment is set apart for payment) for all past dividend periods, no dividends (other than in shares of common stock or other shares of capital stock ranking junior to the Series D Preferred Stock as to dividends and upon liquidation) will be declared and paid or declared and set apart for payment nor will any other distribution be declared and made upon our common stock, or any of our other capital stock ranking junior to or on parity with the Series D Preferred Stock as to dividends or upon liquidation, nor will we redeem, purchase, or otherwise acquire for any consideration (or pay or make any monies available for a sinking fund for the redemption of any such shares) any shares of our common stock, or any other shares of our capital stock ranking junior to or on parity with the Series D Preferred Stock as to dividends or upon liquidation (except by conversion into or exchange for any of our capital stock ranking junior to the Series D Preferred Stock as to dividends and upon liquidation or redemption for the purpose of preserving our qualification as a REIT). 

Holders of shares of the Series D Preferred Stock are not entitled to any distribution, whether payable in cash, property or shares of capital stock, in excess of full cumulative dividends on the Series D Preferred Stock as described above; however, if we fail to redeem or call for redemption the Series D Preferred Stock pursuant to the mandatory redemption required on January 31, 2026, the dividend rate on the Series D Preferred Stock will increase by 3.0% per share per annum to 8.0%, until such shares are redeemed or called for redemption. Any dividend payment made on the Series D Preferred Stock will first be credited against the earliest accumulated but unpaid dividends due with respect to those shares which remain payable. Accrued but unpaid dividends on the Series D Preferred Stock will accumulate as of the dividend payment date on which they first become payable. 

Redemption 

Mandatory Redemption 

We are required to redeem the Series D Preferred Stock on January 31, 2026 at a redemption price of $25.00 per share plus an amount equal to accumulated but unpaid dividends thereon up to but excluding January 31, 2026. 

Optional Redemption 

The Series D Preferred Stock will not be redeemable prior to January 31, 2023. However, in order to ensure that we will continue to meet the requirements for qualification as a REIT, the Series D Preferred Stock will be subject to provisions in our charter pursuant to which shares of our capital stock owned by a stockholder in excess of 3.3% (or 9.8% in the case of certain Qualified Institutional Investors (as defined in the charter)) in value of the aggregate of the outstanding shares of capital stock of the Company will be transferred in trust pursuant to the charter. 
On and after January 31, 2023, at our sole option upon not less than 15 nor more than 60 days’ written notice, we may redeem shares of the Series D Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus an amount equal to all accumulated and unpaid dividends thereon to, but excluding, the date fixed for redemption, without interest. If notice of redemption of any shares of Series D Preferred Stock has been given and if we have deposited the funds necessary for such redemption with the paying agent for the benefit of the holders of any of the shares of Series D Preferred Stock to be redeemed, then from and after the date of such deposit dividends will cease to accumulate on those shares of Series D Preferred Stock, those shares of Series D Preferred Stock will no longer be deemed outstanding and all rights of the holders of such shares 

will terminate, except the right to receive the redemption price. If less than all of the outstanding Series D Preferred Stock is to be redeemed, the Series D Preferred Stock to be redeemed shall be selected ratably by lot or by any other fair and equitable method that the Board may choose. 

Unless full cumulative dividends for all applicable past dividend periods on all shares of Series D Preferred Stock and any shares of stock that rank on parity with regards to dividends and upon liquidation have been or contemporaneously are declared and paid (or declared and a sum sufficient for payment set apart for payment or deposited with the applicable paying agent for all past dividend periods), no shares of Series D Preferred Stock will 
be redeemed. However, the foregoing will not prevent us from purchasing shares pursuant to our charter, in order to ensure that we continue to meet the requirements for qualification as a REIT, or from acquiring shares of Series D Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding shares of Series D Preferred Stock and any shares of stock that rank on parity with regards to dividends and upon liquidation. 

We will deliver a notice of redemption, by overnight delivery, by first class mail, postage prepaid or electronically to holders thereof, or request our agent, on behalf of us, to promptly do so by overnight delivery, by first class mail, postage prepaid or electronically. The notice will be provided not less than 15 nor more than 60 days prior to the date fixed for redemption in such notice. Each such notice will state: (A) the date for redemption; (B) the number of Series D Preferred Stock to be redeemed; (C) the CUSIP number for the Series D Preferred Stock; (D) the applicable redemption price on a per share basis; (E) if applicable, the place or places where the certificate(s) for such shares are to be surrendered for payment of the price for redemption; (F) that dividends on the Series D Preferred Stock to be redeemed will cease to accumulate from and after such date of redemption; and (G) the applicable provisions of our charter under which such redemption is made. If fewer than all shares held by any holder are to be redeemed, the notice delivered to such holder will also specify the number of Series D Preferred Stock to be redeemed from such holder or the method of determining such number. We may provide in any such notice that such redemption is subject to one or more conditions precedent and that we will not be required to affect such redemption unless each such condition has been satisfied at the time or times and in the manner specified in such notice. No defect in the notice or delivery thereof will affect the validity of redemption proceedings, except as required by applicable law. 

If a redemption date falls after a record date and prior to the corresponding dividend payment date, however, each holder of Series D Preferred Stock at the close of business on that record date will be entitled to the dividend payable on such shares on the corresponding dividend payment date notwithstanding the redemption of such shares before the dividend payment date. 

Change of Control 

If a Change of Control Triggering Event occurs with respect to the Series D Preferred Stock, unless we have exercised our option to redeem such Series D Preferred Stock as described above, holders of the Series D Preferred Stock will have the right to require us to redeem (a “Change of Control Redemption”) the Series D Preferred Stock at a price equal to the liquidation preference of $25.00 per share, plus an amount equal to any accumulated and unpaid dividends up to but excluding the date of payment, but without interest (a “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event or, at our option, prior to any Change of Control Triggering Event, but after public announcement of the transaction that constitutes or may constitute the Change of Control Triggering Event, a notice will be mailed to holders of the Series D Preferred Stock, describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to redeem such Series D Preferred Stock on the date specified in the applicable notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”). The notice will, if mailed prior to the date of consummation of the Change of Control Triggering Event, state that the Change of Control Redemption is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date. 

We will not be required to make a Change of Control Redemption upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by us and the third party redeems all Series D Preferred Stock properly tendered and not withdrawn under its offer. 

We will comply with the requirements of Rule 14e-1 under the Exchange Act, and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the redemption of the Series D Preferred Stock as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Redemption provisions of the Series D 
Preferred Stock, we will comply with those securities laws and regulations and will not be deemed to have breached our obligations under the Change of Control Redemption provisions of the Series D Preferred Stock by virtue of any such conflict. 

For purposes of the foregoing discussion of the redemption of the Series D Preferred Stock at the option of the holders, the following definitions are applicable. 

“Capital Stock” of a corporation means the capital stock of every class whether now or hereafter authorized, regardless of whether such capital stock shall be limited to a fixed sum or percentage with respect to the rights of the holders thereof to participate in dividends and in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or winding up of such corporation. 

“Change of Control Triggering Event” means the occurrence of any of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially all of our assets and the assets of our subsidiaries, taken as a whole, to any Person, other than us or one of our subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any Person becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of our outstanding Voting Stock or other Voting Stock into which our Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) we consolidate with, or merge with or into, any Person, or any Person consolidates with, or merges with or into, us, in any such event pursuant to a transaction in which any of our outstanding Voting Stock or the Voting Stock of such other Person is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares of our Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving Person or any direct or indirect parent company of the surviving Person immediately after giving effect to such transaction; (4) the first day on which a majority of the members of our Board of Directors are not Continuing Directors; or (5) the adoption of a plan relating to our liquidation or dissolution. Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control Triggering Event under clause (2) above if (i) we become a direct or indirect wholly-owned subsidiary of a holding company and (ii)(A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of our Voting Stock immediately prior to that transaction or (B) immediately following that transaction no Person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company. 

“Continuing Directors” means, as of any date of determination, any member of our Board of Directors who (A) was a member of such Board of Directors on the date the Series D Preferred Stock was issued or (B) was nominated for election, elected or appointed to such Board of Directors with the approval of a majority of the continuing directors who were members of such Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of a proxy statement in which such member was named as a nominee for election as a director, without objection to such nomination). 

“Person” has the meaning given thereto in Section 13(d)(3) of the Exchange Act. 

“Voting Stock” means, with respect to any specified Person that is a corporation as of any date, the Capital Stock of such Person that is at the time entitled to vote generally in the election of the Board of Directors of such Person. 

Liquidation Preference 

In the event of our voluntary or involuntary liquidation, dissolution or winding up, the holders of shares of Series D Preferred Stock will be entitled to be paid, out of our assets legally available for distribution to our stockholders, a liquidation preference of $25.00 per share, plus an amount equal to any accumulated and unpaid dividends on such 
shares to, but excluding, the date of payment, but without interest, before any distribution of assets is made to holders of our common stock or any other class or series of our capital stock that ranks junior to the Series D Preferred Stock as to liquidation rights. If our assets legally available for distribution to stockholders are insufficient to pay in full the liquidation preference on the Series D Preferred Stock and the liquidation preference on any shares of preferred stock equal in rank with the Series D Preferred Stock, all assets distributed to the holders of Series D Preferred Stock and any other series of preferred stock on parity with the Series D Preferred Stock will be distributed ratably so that the amount of assets distributed per share of Series D Preferred Stock and such other series of preferred stock equal in rank with the Series D Preferred Stock will in all cases bear to each other the same ratio that the liquidation preference per share on the Series D Preferred Stock and on such other series of preferred stock bear to each other. Written notice of any such liquidation, dissolution or winding up of us, stating the payment date or dates when, and the place or places where, the amounts distributable in such circumstances will be payable, will be given by first class mail, postage pre-paid, not less than 30 nor more than 60 days prior to the payment date stated therein, to each record holder of the Series D Preferred Stock at the respective addresses of such holders as the same appear on the stock transfer records of the Company. After payment of the full amount of the liquidation 

preference, plus an amount equal to any accumulated and unpaid dividends to which they are entitled, the holders of Series D Preferred Stock will have no right or claim to any of our remaining assets. If we convert into or consolidate or merge with or into any other corporation, trust or entity, effect a statutory share exchange or sell, lease, transfer or convey all or substantially all of our property or business, we will not be deemed to have liquidated, dissolved or wound up. 

Rank 

The Series D Preferred Stock ranks, with respect to dividend rights and rights upon our liquidation, winding-up or dissolution: 

•senior to all classes or series of our common stock and any future class or series of our capital stock expressly designated as ranking junior to the Series D Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or winding up;

•on parity with our Series B Preferred Stock, our Series C Preferred Stock and any future class or series of our capital stock expressly designated as ranking on parity with the Series D Preferred Stock with respect to dividend rights and rights upon liquidation, dissolution or winding up;

•junior to any future class or series of our capital stock expressly designated as ranking senior to the Series D Preferred Stock with respect to dividend rights or rights upon liquidation, dissolution or winding up, none of which exists on the date hereof; and

•junior to all of our existing and future indebtedness.

Voting Rights 

Holders of the Series D Preferred Stock will not have any voting rights, except as described below. Whenever dividends on any shares of Series D Preferred Stock are in arrears for 18 or more consecutive months (a “Dividend Default”), then the holders of those shares together with the holders of all other series of preferred stock equal in rank with the Series D Preferred Stock upon which like voting rights have been conferred and are exercisable, will be entitled to vote separately as a class for the election of a total of two additional directors on our Board of Directors. 

The election of these directors will take place at a special meeting called upon the written request of the holders of record of at least 20% of the outstanding shares of Series D Preferred Stock or holders of record of at least 20% of any class or series of preferred stock equal in rank with the Series D Preferred Stock upon which like voting rights have been conferred and are exercisable (unless such request is received less than 90 days before the date fixed for 
the next annual or special meeting of stockholders) or at the next annual meeting of stockholders, and at each subsequent annual meeting until all dividends accumulated from past dividend periods and the then current dividend period have been paid (or declared and a sum sufficient for payment set apart). A quorum for any such meeting will exist if at least a majority of the total outstanding shares of Series D Preferred Stock and outstanding shares of preferred stock equal in rank with the Series D Preferred Stock entitled to like voting rights are represented in person or by proxy at that meeting. The directors elected as described above will be elected upon the affirmative vote of a plurality of the votes cast by the holders of shares of Series D Preferred Stock and such preferred stock equal in rank with the Series D Preferred Stock, voting separately as a single class, present and voting in person or by proxy at a duly called and held meeting at which a quorum is present. If and when all accumulated dividends and the dividend for the then current dividend period on the Series D Preferred Stock have been paid in full or declared or set apart for payment in full the holders of the Series D Preferred Stock will be divested of the right to elect directors and, if all dividend arrearages have been paid in full or declared and set apart for payment in full on all series of preferred stock entitled to like voting rights, the term of office of each director so elected will terminate. Any director so elected may be removed at any time with or without cause by, and may not be removed otherwise than by the vote of, the holders of record of a majority of the total outstanding shares of Series D Preferred Stock having the voting rights described above and outstanding shares of all classes of series of preferred stock entitled to like voting rights, voting separately as a single class. So long as a dividend arrearage continues, any vacancy in the office of a director elected as described above may be filled by written consent of the director elected as described above who remains in office, or if none remains in office, by a vote of the holders of record of the total outstanding shares of Series D Preferred Stock when they have the voting rights described above and outstanding shares of all classes or series of preferred stock entitled to like voting rights, voting separately as a single class. These directors will each be entitled to one vote per director on any matter. 

So long as any shares of Series D Preferred Stock remain outstanding, we will not, without the affirmative vote or consent of the holders of at least two-thirds of the shares of the Series D Preferred Stock outstanding at the time, given in person or by proxy, either in writing or at a meeting (voting separately as a class), amend, alter or repeal the provisions of our charter, including the articles supplementary designating the Series D Preferred Stock, whether by merger, consolidation or otherwise, so as to materially and adversely affect any right, preference, privilege or voting power of the Series D Preferred Stock. However, with respect to the occurrence of any event listed above, so long as the Series D Preferred Stock remains outstanding (or shares issued by a surviving entity in substitution for the Series D Preferred Stock) with its terms materially unchanged, taking into account that upon the occurrence of such an event, we may not be the surviving entity, the occurrence of any such event will not be deemed to materially and adversely affect such rights, preferences, privileges or voting power of holders of the Series D Preferred Stock. In addition (i) any increase in the number of authorized shares of Series D Preferred Stock, (ii) any increase in the number of authorized shares of preferred stock or the creation or issuance of any other class or series of preferred stock or (iii) any increase in the number of authorized shares of such class or series, in each case ranking equal with or junior to the Series D Preferred Stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up, will not be deemed to materially and adversely affect such rights, 
preferences, privileges or voting powers. 

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required is effected, all outstanding shares of Series D Preferred Stock have been redeemed or called for redemption upon proper notice and sufficient funds have been deposited in trust to effect such redemption. 

Conversion 

The Series D Preferred Stock is not convertible into or exchangeable for any of our other property or securities. 

Transfer Agent and Registrar

The transfer agent and registrar for the Series D Preferred Stock is Computershare, Inc.

CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS

Classification of our Board of Directors

Our board of directors is currently comprised of eight members. Our board is divided into three classes of directors. Directors of each class are elected for a term expiring at the third annual meeting following their election and until their respective successor is duly elected and qualifies, and each year one class of directors will be elected by the stockholders. Our board of directors has the sole power to fill any vacancy on the board of directors and any director elected to fill a vacancy shall serve for the remainder of the full term of the class in which the vacancy occurred and until a successor is elected and qualifies. We believe that classification of our board of directors helps to assure the continuity and stability of our business strategies and policies as determined by our directors. Holders of shares of our common stock have no right to cumulative voting in the election of directors. Consequently, at each annual meeting of stockholders, the holders of a majority of the capital stock entitled to vote are able to elect all of the successors of the class of directors whose terms expire at that meeting.

Our classified board could have the effect of making the replacement of incumbent directors more time consuming and difficult. At least two annual meetings of stockholders, instead of one, will generally be required to effect a change in a majority of our board of directors. Thus, our classified board could increase the likelihood that incumbent directors will retain their positions. The staggered terms of directors may delay, defer or prevent a tender offer or an attempt to change control of us or another transaction that might involve a premium price for our common stock that might be in the best interest of our stockholders.

Removal of Directors

Any director may be removed only for cause by the stockholders upon the affirmative vote of at least two-thirds of all the votes entitled to be cast generally in the election of directors.

Restrictions on Ownership and Transfer

To qualify and maintain status as a REIT, not more than 50% of our outstanding shares may be owned by any five or fewer individuals (including some tax-exempt entities) during the last half of each taxable year, and the outstanding shares must be owned by 100 or more persons independent of us and each other during at least 335 days of a 12-

month taxable year or during a proportionate part of a shorter taxable year for which an election to be treated as a REIT is made. These requirements do not apply to us for our first taxable year for which we elect to be taxed as a REIT for federal income tax purposes. In order to assist our board of directors in becoming a REIT and preserving our status as a REIT, among other purposes, our charter contains ownership limits which prohibit any person or group of persons from acquiring, directly or indirectly, beneficial ownership of more than 3.3% in value of our outstanding shares of capital stock or more than 3.3% in value or in number of shares (whichever is more restrictive) of our outstanding shares of common stock, other than David Gladstone, who currently owns approximately 18.4% of our outstanding capital stock, and the Gladstone Future Trust, that currently owns approximately 5.6% of our outstanding capital stock, and certain qualified institutional investors who may own up to 9.8%. 

The 3.3% ownership limit does not apply to any underwriter, placement agent or initial purchaser that participates in a public offering, a private placement or other private offering of our capital stock (or securities convertible or exchangeable for capital stock) in a public offering of our shares, only to the extent necessary to facilitate such offering.

Distributions

Distributions will be paid to stockholders as of the record date selected by our board of directors. We generally pay distributions on a monthly basis regardless of the frequency with which such distributions are declared. To qualify as a REIT, we are required to make distributions sufficient to satisfy the REIT requirements. Generally, income distributed as distributions will not be taxable to us under federal income tax laws unless we fail to comply with the REIT requirements.

Distributions are authorized at the discretion of our board of directors based on our earnings, cash flow and general financial condition. The directors’ discretion will be governed, in substantial part, by their obligation to cause us to comply with the REIT requirements. Because we may receive income from interest or rents at various times during our fiscal year, distributions may not reflect our income earned in that particular distribution period but may be made in anticipation of cash flow which we expect to receive during a later month and may be made in advance of actual receipt in an attempt to make distributions relatively uniform. We may borrow to make distributions if the borrowing is necessary to maintain our REIT status, or if the borrowing is part of a liquidation strategy whereby the borrowing is done in anticipation of the sale of properties and the proceeds will be used to repay the loan.

Information Rights

Any stockholder may, during normal business hours and for any lawful and proper purpose, inspect and copy our bylaws, minutes of the proceedings of our stockholders meetings, our annual statement of affairs and any voting trust agreement that is on file at our principal office. In addition, one or more stockholders who together are, and for at least six months have been, record or beneficial holders of 5% of any class of our stock are entitled to inspect our books of accounts or a copy of our stockholder list upon written request. The list will include the name and address of, and the number of shares owned by, each stockholder and will be available at our principal office within 20 days of the stockholder’s request.

The rights of stockholders described above are in addition to, and do not adversely affect rights provided to investors under, Rule 14a-7 promulgated under the Exchange Act. Rule 14a-7 provides that, upon request of investors and the payment of the expenses of the distribution, we are required to distribute specific materials to stockholders in the context of the solicitation of proxies for voting on matters presented to stockholders, or, at our option, provide requesting stockholders with a copy of the list of stockholders so that the requesting stockholders may make the distribution themselves.

Business Combinations

The MGCL prohibits “business combinations” between a corporation and an interested stockholder or an affiliate of an interested stockholder for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, statutory share exchange, or, in circumstances specified in the statute, certain transfers of assets, certain stock issuances and transfers, liquidation plans and reclassifications involving interested stockholders and their affiliates. The MGCL defines an interested stockholder as:

•any person who beneficially owns, directly or indirectly, 10% or more of the voting power of our outstanding voting stock; or

•an affiliate or associate of the corporation who, at any time within the two-year period immediately prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then-outstanding stock of the corporation.

•A person is not an interested stockholder if the board of directors approves in advance the transaction by which the person otherwise would have become an interested stockholder. However, in approving the transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board of directors.

After the five-year prohibition, any business combination between a corporation and an interested stockholder generally must be recommended by the board of directors and approved by the affirmative vote of at least:

•80% of the votes entitled to be cast by holders of the then outstanding shares of voting stock; and

•two-thirds of the votes entitled to be cast by holders of the voting stock other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or shares held by an affiliate or associate of the interested stockholder.

These super-majority vote requirements do not apply if the common stockholders receive a minimum price, as defined under the MGCL, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.

The statute permits various exemptions from its provisions, including business combinations that are approved by the board of directors before the time that the interested stockholder becomes an interested stockholder.

Subtitle 8

Subtitle 8 of Title 3 of the MGCL permits a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three independent directors to elect to be subject, by provision in its charter or bylaws or a resolution of its board of directors and notwithstanding any contrary provision in the charter or bylaws, to any or all of five provisions:

•a classified board of directors;

•a two-thirds vote requirement for removing a director;

•a requirement that the number of directors be fixed only by vote of the directors;

•a requirement that a vacancy on the board be filled only by the remaining directors and for the remainder of the full term of the class of directors in which the vacancy occurred; and

•a majority requirement for the calling by stockholders of a special meeting of stockholders.

Through provisions in our charter and bylaws unrelated to Subtitle 8, we already (a) have a classified board, (b) require a two-thirds vote for the removal of any director from the board, (c) vest in the board the exclusive power to fix the number of directorships and (d) require, unless called by our chairman, our chief executive officer, our president, a majority of our directors or a majority of our independent directors, the request of stockholders entitled to cast not less than a majority of all votes entitled to be cast to call a special meeting. We have elected that, except as may be provided by our board of directors in setting the terms of any class or series of stock, any and all vacancies on the board may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy will serve for the remainder of the full term of the class in which such vacancy occurred and until his or her successor is duly elected and qualifies.

Amendments to Our Charter and Bylaws

Except for amendments to the provisions of our charter relating to the removal of directors and the restrictions on ownership and transfer of our shares of stock and the vote required to amend these provisions (each of which must 

be advised by our board of directors and approved by the affirmative vote of stockholders entitled to cast not less than two-thirds of all the votes entitled to be cast on the matter), our charter generally may be amended only if approved and advised by our board of directors and approved by the affirmative vote of stockholders entitled to cast a majority of all of the votes entitled to be cast on the matter.

Our board of directors has the exclusive power to adopt, alter or repeal any provision of our bylaws and to make new bylaws.

Extraordinary Transactions

Under the MGCL, a Maryland corporation generally cannot dissolve, merge, sell all or substantially all of its assets, convert into another entity, engage in a statutory share exchange or engage in similar transactions outside the ordinary course of business unless approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter unless a lesser percentage (but not less than a majority of all of the votes entitled to be cast on the matter) is set forth in the corporation’s charter. As permitted by the MGCL, our charter provides that any of these actions except for the charter amendments described above may be approved by the affirmative vote of stockholders entitled to cast a majority of all of the votes entitled to be cast on the matter.

Operations

We generally are prohibited from engaging in certain activities, including acquiring or holding property or engaging in any activity that would cause us to fail to qualify as a REIT.

Term and Termination

Our charter provides for us to have a perpetual existence. Pursuant to our charter, and subject to the provisions of any of our classes or series of stock then outstanding and the approval by a majority of the entire board of directors, our stockholders by the affirmative vote of a majority of all of the votes entitled to be cast on the matter, may approve a plan of liquidation and dissolution.

Advance Notice of Director Nominations and New Business

Our bylaws provide that, with respect to an annual meeting of stockholders, nominations of persons for election to our board of directors and the proposal of business to be considered by stockholders at the annual meeting may be made only:

•pursuant to our notice of the meeting;

•by or at the direction of our board of directors; or

•by a stockholder who was a stockholder of record at the time of the provision of notice, who is entitled to vote at the meeting and who has complied with the advance notice procedures set forth in our bylaws.

With respect to special meetings of stockholders, only the business specified in our notice of meeting may be brought before the meeting of stockholders and nominations of persons for election to our board of directors at which directors are to be elected pursuant to our notice of the meeting may be made only:

•by or at the direction of our board of directors; or

•by a stockholder who was a stockholder of record at the time of the provision of notice, who is entitled to vote at the meeting and who has complied with the advance notice provisions set forth in our bylaws.

Power to Issue Additional Shares

In the future, we may issue additional securities, including upon the redemption of limited partnership interests that we may issue in connection with acquisitions of real property. We believe that the power to issue additional shares of stock and to classify or reclassify unissued shares of common stock or preferred stock into other classes or series 
of stock and thereafter to issue the classified or reclassified shares provides us with increased flexibility in structuring possible future financings and acquisitions and in meeting other needs which might arise. These actions can be taken without stockholder approval, unless stockholder approval is required by applicable law or the rules of 

any stock exchange or automated quotation system on which our securities may be listed or traded. Although we have no present intention of doing so, we could issue a class or series of shares that could delay, defer or prevent a transaction or a change in control that might involve a premium price for holders of common stock or otherwise be in their best interest.

Control Share Acquisitions

The MGCL provides that a holder of “control shares” of a Maryland corporation acquired in a “control share acquisition” has no voting rights with respect to such shares except to the extent approved at a special meeting by the affirmative vote of two-thirds of the votes entitled to be cast on the matter, excluding shares of stock in a corporation in respect of which any of the following persons is entitled to exercise or direct the exercise of the voting power of shares of stock of the corporation in the election of directors: (i) a person who makes or proposes to make a control share acquisition, (ii) an officer of the corporation or (iii) an employee of the corporation who is also a director of the corporation. “Control shares” are voting shares of stock which, if aggregated with all other such shares of stock previously acquired by the acquiror or in respect of which the acquiror is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquiror to exercise voting power in electing directors within one of the following ranges of voting power: (i) one-tenth or more but less than one-third, (ii) one-third or more but less than a majority, or (iii) a majority or more of all voting power. Control shares do not include shares that the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A “control share acquisition” means the acquisition of issued and outstanding control shares, subject to certain exceptions.

A person who has made or proposes to make a control share acquisition, upon satisfaction of certain conditions (including an undertaking to pay expenses and delivering an acquiring person statement), may compel our board of directors to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares. If no request for a meeting is made, the corporation may itself present the question at any stockholders meeting.

If voting rights are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement as required by the statute, then, subject to certain conditions and limitations, the corporation may redeem any or all of the control shares (except those for which voting rights have previously been approved) for fair value determined, without regard to the absence of voting rights for the control shares, as of the date of the last control share acquisition by the acquiror or of any meeting of stockholders at which the voting rights of such shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquiror becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of such appraisal rights may not be less than the highest price per share paid by the acquiror in the control share acquisition.

The control share acquisition statute does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation.

Our bylaws contain a provision exempting from the control share acquisition statute any and all acquisitions of shares of our stock by David Gladstone and any of his affiliates. There is no assurance that such provision will not be amended or eliminated at any time in the future.

Possible Anti-Takeover Effect of Certain Provisions of Maryland Law and of Our Charter and Bylaws

The business combination provisions and the control share acquisition provisions of the MGCL; the classification of our board of directors; the restrictions on the transfer and ownership of stock and the advance notice provisions of our bylaws could have the effect of delaying, deferring or preventing a transaction or a change in control that might involve a premium price for holders of common stock or otherwise be in their best interests.Document

FIRST AMENDMENT TO LOAN AGREEMENT
THIS FIRST AMENDMENT TO LOAN AGREEMENT (this “First Amendment”), is made and entered into as of February 3, 2022 (the “Effective Date”) by and among GLADSTONE LAND LIMITED PARTNERSHIP, a Delaware limited partnership (“Borrower”), GLADSTONE LAND CORPORATION, a Maryland corporation (“Guarantor”), and METROPOLITAN LIFE INSURANCE COMPANY, a New York corporation (the “Lender”).
RECITALS

A.Borrower, Guarantor and Lender are parties to that certain Loan Agreement dated as of February 20, 2020, as amended and addended (the “Loan Agreement”).  The Loan Agreement was executed in connection with a loan (the “Loan”) made by Lender to Borrower evidenced by  (i) that certain Promissory Note (Note B - RELOC) in the principal amount of up to Twenty-Five Million and 00/100 Dollars ($25,000,000.00) dated as of April 30, 2014 and executed by Borrower to the order of Lender, as amended by that certain First Amendment to Promissory Note (Note B) dated as of September 3, 2015, as amended by that certain Second Amendment to Promissory Note (Note B) dated as of October 5, 2016, as further amended by that certain Third Amendment to Promissory Note (Note B) dated as of December 15, 2017, as completely amended and restated by that certain Amended and Restated Promissory Note (Note B-RELOC) dated February 20, 2020 (“Note B”), (ii) that certain Amended and Restated Promissory Note (Note D - RELOC) in the principal amount of up to Fifty Million and 00/100 Dollars ($50,000,000.00) dated as of December 15, 2017 executed by Borrower to the order of Lender as completely amended and restated by that certain Amended and Restated Promissory Note (Note D-RELOC) dated February 20, 2020 (“Note D”), and (iii)  that certain Promissory Note (Note E – Term Facility) in the principal amount of up to Seventy-Five Million and 00/100 Dollars ($75,000,000.00) dated as of February 20, 2020 and executed by Borrower to the order of Lender (“Note E”, and collectively with Notes B and D, the “Notes”).  The Notes are currently secured by the Security Instruments, as defined in the Loan Agreement.  Guarantor has guaranteed the payment and performance of the Loan pursuant to that certain Loan Guaranty Agreement dated as of February 20, 2020 (as amended, the “Guaranty”).  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Loan Agreement.
B.Borrower has requested, and Lender has agreed to make, an additional loan to Borrower in the maximum principal amount of One Hundred Million and 00/100 Dollars ($100,000,000.00) (“Additional Loan”).  This Loan Agreement is being amended to add the Additional Loan to its terms and to further amend the Loan Agreement as provided for herein.
C.In addition, under the terms of the Loan Agreement, Borrower may request that additional Collateral be added to the Loan with the acquisition of agricultural property by Borrower or one of its subsidiaries, which property may be accepted by Lender as Collateral for the Loan.  Borrower has identified, and Lender has agreed to accept as Collateral for the Loan, the property described on Exhibit B-1 attached hereto, and all agricultural operations and related permanent plantings, irrigation facilities and water rights located on such property, and the rents, revenue and income derived therefrom (collectively, the “Future Property”) to be owned by 
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West Lerdo Highway Lost Hills CA, LP, a Delaware limited partnership (the “Future Property Owner”).
NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower, Guarantor and Lender hereby agree as follows:

AGREEMENT

1.Status of Existing Loan.  Borrower and Guarantor acknowledge for the benefit of Lender that the Notes, the Guaranty, the Loan Agreement as amended by this First Amendment, the Security Instruments, and any other Loan Documents (collectively, the “Loan Documents”) are all valid and binding obligations enforceable in accordance with their terms, and that neither Borrower nor Guarantor has any offset or defense against the indebtedness evidenced by the Notes or any of the obligations set forth in the Loan Documents.  
2.Additional Loan.
2.1    Borrower has duly authorized the delivery of that certain Promissory Note (Note F) in the principal amount of up to $100,000,000.00, as amended, modified, restated, extended or expanded from time to time (“Note F”), dated as of even date herewith and executed by Borrower to the order of Lender. The interest rates applicable to the balance under Note F (and the adjustment of such interest rates), the repayment terms and other terms applicable to the indebtedness evidenced by Note F are more particularly set forth in Note F.  The term “Notes” as used in the Loan Agreement and the other Loan Documents is hereby amended to include Note F.
2.2    Borrower hereby agrees to borrow from Lender, and Lender, subject to the terms and conditions herein set forth and in the other Loan Documents, hereby agrees to lend to Borrower, the aggregate principal sum of up to One Hundred Million and 00/100 Dollars ($100,000,000.00) to be evidenced by Note F and disbursed in accordance with the Loan Agreement (the “Additional Loan”).  The term “Loan” as used in the Loan Agreement and the other Loan Documents is hereby amended to include the Additional Loan
2.3    Payment of Note F and performance of the obligations arising under the Loan Agreement, as amended by this First Amendment and the Loan shall be secured by the Security Instruments now or hereafter granted by any of the Property Owners with respect to, inter alia, the Land and the other Real Property and such other documents and instruments as Lender shall reasonably request to further evidence or perfect its security interest in the Collateral.  Each Property Owner shall execute and deliver to Lender an amendment to its respective Security Instrument to expand the obligations secured thereby to include the Additional Loan, and all references in the Loan Agreement and the other Loan Documents to “Security Instruments” shall mean the Security Instruments as so amended.
2.4    Borrower’s obligations under Note F, the Loan Agreement as modified by this Amendment and the other Loan Documents shall be guaranteed by (a) Guarantor pursuant to the Guaranty; (b) the Property Owners pursuant to certain Property Owner 
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Guaranties and the Security Instruments; and (c) any Future Property Owners pursuant to Loan Guaranty Agreements and Security Instruments, delivered in connection with the addition of Future Property to the Collateral.  Note F is also supported by the Indemnity Agreement.
2.5    Borrower shall pay to Lender an unused commitment fee payable in arrears with each interest payment payable on an Interest Payment Date as more particularly provided in Note F.
3.Disbursement of Additional Loan.   Note F shall be disbursed in accordance with the terms and conditions of Section 3.1 of the Loan Agreement; provided however, that (a) Borrower may request disbursements at any time after the Effective Date but no later than December 31, 2024, with no more than six (6) Disbursements under Note F permitted in any calendar year; (b) in no event shall the total Disbursements under Note F exceed the lesser of $100,000,000.00 or sixty percent (60%) of the Appraised Value of the Collateral; and (c) Section 3.1(m) is adjusted to provide that prepayments shall (unless otherwise indicated by Borrower), in the absence of an Event of Default, be applied first to the outstanding principal balance, if any, of Note B and Note D and then to the outstanding principal balance of Note E and then to Note F.
4.Future Property.  The property legally described on Exhibit B-1 attached hereto is hereby added to be part of the “Land” under the Loan Agreement, and Exhibit B of the Loan Agreement is hereby amended to include Exhibit B-1 attached hereto.  The Future Property is hereby accepted by Lender as, and for all purposes is deemed to be, Real Property under the Loan Agreement.  

5.Liens and Leases.  Exhibit D of the Loan Agreement setting forth the liens and leases constituting Permitted Encumbrances on the Collateral is replaced with Exhibit D-1 attached hereto. 

6.Disclosure and Valuation.  Exhibit A of the Loan Agreement setting forth the disclosure and valuation of the Real Property is replaced with Exhibit A-1 attached hereto.

7.Future Property Owner.  Future Property Owner is well seized of an indefeasible estate in fee simple in the Future Property.  Future Property Owner is a separate Subsidiary entity established as a single asset entity by Borrower for the purposes of owning the Future Property.  Exhibit E of the Loan Agreement setting forth the Property Owners is hereby replaced with Exhibit E-1.  All references to the Property Owners in the Loan Agreement shall include the Future Property Owner.

8.New Security Instrument and Loan Documents. Future Property Owner shall execute and deliver to Lender, as a condition to the effectiveness of this Addendum and Lender’s acceptance of the Future Property as Collateral, the following documents, each in substantially the form required by Lender:

(a)a new security instrument encumbering its interest in the Future Property (the “New Security Instrument”), which shall be deemed to be a Security Instrument under the Loan Agreement and all other Loan Documents;
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(b)a Property Owner Guaranty;
(c)a joinder to the Indemnity Agreement;
(d)a First Amendment to the Contribution and Indemnity Agreement;
(e)a certification as to its status, the use and other features of the Future Property; and
(f)such other documents and certificates as required by Lender to the extent consistent with the Loan Documents.
9.Cross-Default and Cross-Collateralization.  Borrower and Guarantor acknowledge that the Security Instruments, including the New Security Instrument, are Collateral for the entire Loan, and the occurrence of a default under any of the Security Instruments, including the New Security Instrument, or any of the Loan Documents will comprise a default under all of the Security Instruments, including the New Security Instrument, and other Loan Documents.

10.Title Policy.  In connection with the New Security Instrument, Lender shall be provided with a mortgagee’s title insurance policy insuring the Lender’s first priority lien in the Future Property, subject only to such encumbrances, and containing such endorsements, as Lender may approve in its sole and absolute discretion and aggregating title insurance coverage with all other Title Policies insuring the liens of the Security Instruments.

11.Consent of Guarantor.  Guarantor hereby consents to the addition of Note F to the Loan under the terms of the Loan Agreement, as amended hereby, and further, consents to the execution by all parties of this First Amendment and any other documents or modifications to documents contemplated hereby. Guarantor agrees that the Guaranty remains in full force and effect with regard to all disbursements of the Loan and the Loan Documents as so modified.
12.Reaffirmation of Guaranty.  Guarantor hereby confirms and reaffirms all of the representations, warranties, covenants and obligations of the Guaranty and the other Loan Documents, and further confirms and agrees that Guarantor is and shall continue to be liable for all obligations arising under and in connection with the Loan.
13.Reaffirmation by Borrower.  Except as specifically amended by this First Amendment, the Loan Agreement shall remain unmodified and in full force and effect. Borrower hereby reaffirms for the benefit of Lender each and every of the terms and provisions of the Notes and the Loan Agreement, and agrees to the addition of Note F to the Loan Agreement under the terms of this Amendment.
14.Representations and Warranties of Borrower.  Borrower hereby restates and reaffirms all of the covenants, representations and warranties set forth in the Loan Agreement, as if made as of the date of this First Amendment.  In particular, all of the representations and warranties set forth in Section 4 of the Loan Agreement, as amended hereby, as applied to Borrower and all of the Property, remain true, accurate and complete.  
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15.Miscellaneous.  Borrower and Lender hereby agree that all references in the Loan Agreement to the “Loan Documents” shall include this First Amendment and Note F.  Furthermore, the Loan Documents shall be interpreted in accordance with the provisions of this First Amendment and any related terms set forth in such documents are hereby modified accordingly. All references in the Loan Agreement to the “Security Instrument” or the “Security Instruments” are hereby amended to incorporate the First Amendments referenced in Section 2.3 above, and to include the New Security Instrument.  All references to the “Notes” are hereby amended to mean Note B, Note D, Note E and Note F.  
16.Counterparts.  This First Amendment may be executed in multiple counterparts, each of which shall be an original and all of which, when combined, shall constitute one and the same instrument.

[Signatures pages follow]

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First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
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IN WITNESS WHEREOF, Lender, Borrower and Guarantor have executed this First Amendment, or have caused this First Amendment to be executed by its duly authorized representative(s) as of the Effective Date.
BORROWER:

GLADSTONE LAND LIMITED PARTNERSHIP,
a Delaware limited partnership

By:    Gladstone Land Partners, LLC,
    a Delaware limited liability company
    Its General Partner

    By:    Gladstone Land Corporation, 
        a Maryland corporation 
        Its Manager

By:  /s/David Gladstone    
David Gladstone 
Its Chief Executive Officer

GUARANTOR:

GLADSTONE LAND CORPORATION, 
a Maryland corporation

By:  /s/David Gladstone    
David Gladstone
Its Chief Executive Officer

    [Signatures continue on next page]

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First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
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LENDER:

METROPOLITAN LIFE INSURANCE COMPANY,
a New York corporation

By:  MetLife Investment Management, LLC,
    its investment manager

    By: /s/Robert Frudden    
    Name: Robert Frudden    
    Its:     Authorized Signatory
            and Director

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First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
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EXHIBIT A-1
Current Schedule of Properties and Proportionate Shares

									
	 	%	Amount
	20th Avenue South Haven, LLC, a Delaware limited liability company	0.62%	$1,525,000.00
	Broadway Road Moorpark, LLC, a Delaware limited liability company	1.54%	$3,780,000.00
	East Shelton Road, LLC, a Delaware limited liability company	3.40%	$8,360,000.00
	Spring Valley Road Watsonville, LP, a Delaware limited partnership	3.30%	$8,100,000.00
	Naumann Road Oxnard, LP, a Delaware limited partnership	2.40%	$5,890,000.00
	Sycamore Road Arvin, LP, a Delaware limited partnership	2.82%	$6,930,000.00
	Dalton Lane Watsonville, LLC, a California limited liability company	1.82%	$4,475,000.00
	West Sierra Avenue Earlimart CA, LP, a Delaware limited partnership	25.05%	$61,500,000.00
	Lerdo Highway Shafter CA, LP, a Delaware limited partnership	23.21%	$57,000,000.00
	West Lerdo Highway Lost Hills CA, LP, a Delaware limited partnership	35.84%	$88,000,000.00
	 Total	100.00	$245,560,000.00

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First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

EXHIBIT B-1
Future Property

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE UNINCORPORATED AREA, COUNTY OF KERN, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

PARCEL A:

THE WEST HALF OF THE WEST HALF OF SECTION 32, TOWNSHIP 27 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF. 
EXCEPT 12-1/2% INTEREST IN AND TO ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES WITHIN OR UNDERLYING SAID LAND, AS EXCEPTED IN THE DEED FROM JOHN MACKESSY, ET UX, RECORDED MAY 14, 1964 IN BOOK 3725 PAGE 270 OF OFFICIAL RECORDS.

ALSO EXCEPT 25% OF ALL OIL, GAS, PETROLEUM, AND OTHER HYDROCARBON SUBSTANCES EXCEPTED IN THE DEED FROM ARTHUR O. KING, AS TRUSTEE, RECORDED APRIL 9, 1964 IN BOOK 3713 PAGE 755 OF OFFICIAL RECORDS.

ALSO EXCEPT 37-1/2% OF ALL OIL, GAS, PETROLEUM AND OTHER HYDROCARBON SUBSTANCES WITHIN OR UNDERLYING SAID LAND, AS EXCEPTED BY EDWARD J. CARR AND MARY K. CARR, WILLIAM N. LAGOMARSINO AND BERTHA LAGOMARSINO, HENRY J. OLIVA AND GENEVA OLIVA, IN DEED RECORDED JANUARY 27, 1966.

EXCEPT ALL REMAINING OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS WITHIN OR UNDERLYING SAID LAND AS RESERVED IN DEED RECORDED JUNE 23, 1999, AS INSTRUMENT NO. 0199089098, OF OFFICIAL RECORDS.

APN: 069-250-10-00

PARCEL B:

THAT PORTION OF THE EAST HALF OF THE WEST HALF OF SECTION 29, TOWNSHIP 27 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, LYING WEST OF THE CENTER LINE OF THE WEST SIDE CANAL, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWEST CORNER OF THE EAST HALF OF THE WEST HALF OF SECTION 29, TOWNSHIP 27 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN; THENCE RUNNING EASTERLY ALONG THE NORTHERLY BOUNDARY OF SECTION 29, SOUTH 87° 41' EAST 794 FEET TO A POINT ON THE CENTER LINE OF THE WEST SIDE CANAL; THENCE RUNNING IN A SOUTHEASTERLY DIRECTION ALONG SAID CANAL CENTER LINE SOUTH 5° 58' EAST 5331.20 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF SAID SECTION 29; THENCE RUNNING WESTERLY ALONG SAID SOUTHERLY BOUNDARY NORTH 87° 42' WEST 1353.70 FEET TO THE SOUTHWEST CORNER OF THE EAST HALF OF THE WEST HALF OF SAID SECTION 29; THENCE RUNNING IN A NORTHERLY DIRECTION ALONG THE WESTERLY BOUNDARY OF THE EAST HALF OF THE WEST HALF OF SAID SECTION 29, NORTH 0° 03' EAST, 5280 FEET TO THE PLACE OF BEGINNING.

EXCEPTING THEREFROM THE NORTHERLY 150 FEET OF SAID LAND CONDEMNED IN FINAL ORDER OF CONDEMNATION RECORDED NOVEMBER 14, 1974 IN BOOK 4869 PAGE 1591 AND FIRST AMENDED ORDER OF CONDEMNATION RECORDED DECEMBER 23, 1974 IN BOOK 4873 PAGE 2431 OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM ANY AND ALL OIL AND/OR GAS IN OR UNDER A DEPTH OF 500 FEET BELOW THE SURFACE OF SAID LAND AND ALL OTHER MINERALS OF ANY AND EVERY KIND AND NAME, INCLUDING HELIUM, TOGETHER WITH THE RIGHTS TO (A) OPERATE, MAINTAIN, RENEW AND RELOCATE ANY AND ALL EXISTING SHAFTS, PIPELINES, POWER AND COMMUNICATION LINES, TANKS, ROADWAYS, RAILROAD TRACKS, POWER STATIONS, AND 
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First Amendment to Loan Agreement
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Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

OTHER STRUCTURES AND WELLS, AS MAY BE NECESSARY AND CONVENIENT IN ORDER TO EXPLORE, PROSPECT FOR, OR TO PRODUCE, SAVE AND REMOVE OIL, GAS, HELIUM AND OTHER MINERALS FROM SAID LAND OR FROM OTHER LANDS PRESENTLY OR SUBSEQUENTLY OWNED OR LEASED BY GRANTOR, WHETHER OR NOT SUCH OTHER LANDS ARE PART OF A LARGER PARCEL FROM WHICH THE LAND GRANTED HEREUNDER IS HEREBY SEVERED OR ARE ENTIRELY SEPARATE FROM ANY PARCEL FROM WHICH THE LANDS GRANTED HEREUNDER ARE SEVERED; (B) FROM TIME TO TIME TO CONSTRUCT, OPERATE, MAINTAIN, RENEW AND RELOCATE SUCH ADDITIONAL FACILITIES OF THE SAME CHARACTER AS WILL NOT UNREASONABLY INTERFERE WITH THE USE OF SAID LAND BY GRANTEE; (C) DIG OR DRILL WATER WELLS, AT ANY DEPTH, AND USE WATER THEREFROM IN CONNECTION WITH THE EXPLORATION, PROSPECTING AND DEVELOPMENT OF SAID LAND FOR OIL, GAS, HELIUM AND OTHER MINERALS, AND THE PRODUCTION, SAVINGS AND REMOVAL OF THE SAME THEREFROM; AND (D) FROM TIME TO TIME REMOVE ANY AND ALL PROPERTY, MACHINERY, EQUIPMENT OR APPLIANCES PLACED ON SAID LAND BY GRANTOR, AS RESERVED BY SANTA FE ENERGY COMPANY, A TEXAS CORPORATION BY DEED RECORDED AUGUST 5, 1987 IN BOOK 6034 PAGE 766 OF OFFICIAL RECORDS.

APN: 069-250-17-00 & 069-250-18-00

PARCEL C:

THE EAST HALF OF THE WEST HALF AND ALL OF THE PART OF THE WEST HALF OF THE EAST HALF OF SECTION 32, TOWNSHIP 27 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, IN THE UNINCORPORATED AREA, COUNTY OF KERN, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, LYING WEST OF THE CENTER OF THE WEST SIDE CANAL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF THE EAST HALF OF THE WEST HALF OF SECTION 32, TOWNSHIP 27 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN; THENCE RUNNING EASTERLY ALONG THE SOUTHERLY BOUNDARY OF SAID SECTION 32, NORTH 89° 43' EAST 1320.00 FEET TO THE SOUTH ONE-QUARTER SECTION CORNER; THENCE CONTINUING ALONG THE SOUTHERLY BOUNDARY OF SAID SECTION 32, SOUTH 87° 20’ EAST 833.00 FEET TO A POINT ON THE CENTER LINE OF THE WEST SIDE CANAL, THENCE RUNNING IN A NORTHERLY DIRECTION ALONG SAID CANAL CENTER LINE NORTH 8° 46’ WEST 4240.00 FEET TO A POINT, THENCE CONTINUING ALONG SAID CANAL CENTER LINE NORTH 5° 58’ WEST 1073.00 FEET TO A POINT ON THE NORTHERLY BOUNDARY OF SAID SECTION 32; THENCE RUNNING WESTERLY ALONG SAID NORTHERLY BOUNDARY NORTH 87°42° WEST 1353.70 FEET TO THE NORTHWEST CORNER OF THE EAST HALF OF THE WEST HALF OF SAID SECTION 32; THENCE RUNNING IN A SOUTHERLY DIRECTION ALONG THE WESTERLY BOUNDARY OF THE EAST HALF OF THE WEST HALF OF SAID SECTION 32, SOUTH 0° 27' WEST 5280.00 FEET TO THE PLACE OF BEGINNING.

EXCEPTING THEREFROM ALL OIL, AND/OR GAS IN OR UNDER A DEPTH OF 500 FEET BELOW THE SURFACE OF SAID LAND AND ALL OTHER MINERALS OF ANY AND EVERY KIND AND NAME, INCLUDING HELIUM, TOGETHER WITH THE RIGHTS TO; (A) OPERATE, MAINTAIN, RENEW AND RELOCATE ANY AND ALL EXISTING SHAFTS, PIPELINES, POWER AND COMMUNICATION LINES, TANKS, ROADWAYS, RAILROAD TRACKS, POWER STATIONS, AND OTHER STRUCTURES AND WELLS AS MAY BE NECESSARY AND CONVENIENT IN ORDER TO EXPLORE, PROSPECT FOR, OR TO PRODUCE, SAVE AND REMOVE OIL, GAS, HELIUM AND OTHER MINERALS FROM SAID LAND OR FROM OTHER LANDS PRESENTLY OR SUBSEQUENTLY OWNERS OR LEASED BY GRANTOR, WHETHER OR NOT SUCH OTHER LANDS ARE PART OF A LARGER PARCEL FROM WHICH THE LAND GRANTED HEREUNDER IS HEREBY SEVERED OR ARE ENTIRELY SEPARATE FROM ANY PARCEL FROM WHICH THE LANOS GRANTED HEREUNDER ARE SEVERED: (B) FROM TIME TO TIME TO CONSTRUCT, OPERATE, MAINTAIN, RENEW AND RELOCATE SUCH ADDITIONAL FACILITIES OF THE SAME CHARACTER AS WILL NOT UNREASONABLY INTERFERE WITH THE USE OF SAID LAND BY GRANTEE; (C) DIG OR DRILL WATER WELLS, AT ANY DEPTH. AND USE WATER THEREFROM IN CONNECTION WITH THE EXPLORATION, PROSPECTING AND DEVELOPMENT OF SAID LAND FOR OIL, GAS, HELIUM AND OTHER MINERALS. AND THE PRODUCTION. SAVING ANO REMOVAL OF THE SAME THEREFROM: AND; (D) FROM TIME TO TIME REMOVE ANY AND ALL PROPERTY, MACHINERY, EQUIPMENT, OR APPLIANCES PLACED ON SAID LAND BY GRANTOR. IT IS DECLARED TO BE THE INTENT OF THE PARTIES HERETO THAT THE 
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First Amendment to Loan Agreement
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Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

TERM “MINERAL IS HERE USED IN ITS BROADEST AND MOST INCLUSIVE SENSE. IN THE EVENT THE GRANTOR ENTERS UPON SAID LAND FOR THE PURPOSE OF CONDUCTING OPERATIONS FOR THE EXPLORATION FOR, PRODUCTION ANO/OR SAVING AND REMOVAL OF OIL. GAS OR OTHER HYDROCARBON SUBSTANCES, WATER, HELIUM, OR OTHER MINERALS, OR IN THE EXERCISE OF ANY RIGHT HEREINABOVE RESERVED TO GRANTOR, AND SHOULD GRANTOR, IN CONDUCTING SUCH OPERATIONS OR IN THE EXERCISE OF SUCH RIGHTS. DAMAGE ANY GROWING CROPS OR IMPROVEMENTS OR RENDER UNSUITABLE FOR PASTURAGE OR FARMING ANY PORTION OF SAID LANO THERETOFORE CONVERTED TO AND USED FOR PASTURAGE OR FARMING, GRANTOR SHALL PAY TO GRANTEE THE AMOUNT OF ACTUAL DAMAGE TO CROPS OF IMPROVEMENTS. OR, IF GRANTOR SO ELECTS, ANNUALLY, AS. RENTAL FOR THE LANO SO RENDERED UNSUITABLE, THE RATE OF RENTAL THEN CURRENT IN THE LOCALITY FOR LEASING PASTURAGE OR FARMING LAND, AS THE CASE MAY BE. IF GRANTOR ELECTS THE PAYMENT OF RENTAL, SUCH RENTAL SHALL BE PAID UNTIL THE AFFECTED LAND SHALL AGAIN BE RENDERED UNABLE. THE OBLIGATIONS OF GRANTOR CONTAINED IN THIS PARAGRAPH SHALL BE COVENANTS RUNNING WITH THE LAND HEREBY GRANTED, AS RESERVED IN THE DEED FROM SANTA FE ENERGY COMPANY. RECORDED AUGUST 5, 1987 IN BOOK 6034, PAGE 766 OF OFFICIAL RECORDS, DOCUMENT NO. 15320.

APN: 069-250-19-00 AND 069-250-20-00

PARCEL D:

A PARCEL OF LAND DESCRIBED AS BEGINNING AT THE SOUTHEAST CORNER OF SECTION 8, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, IN THE UNINCORPORATED AREA OF KERN, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, THENCE ALONG THE SOUTH LINE OF SAID SECTION 8, SOUTH 89° 54' WEST 312 FEET TO THE SOUTHWEST CORNER OF THE 15.14 ACRE TRACT OF LAND CONVEYED BY WARREN BARNES TO MILLER & LUX INCORPORATED, ON DECEMBER 12, 1917; THENCE ALONG THE WEST LINE OF THE 15.14 ACRE TRACT AND THE 10.30 ACRE TRACT CONVEYED BY WARREN BARNES TO MILLER & LUX INCORPORATED, ON DECEMBER 12, 1917, IN SECTION 8 OF AFORESAID TOWNSHIP AND RANGE AND ALONG THE EAST LINE OF A 16.00 ACRE TRACT CONVEYED BY MILLER & LUX INCORPORATED TO WARREN BARNES IN SAID SECTION 8, IN THE YEAR 1917, NORTH 15° 53' WEST 5478.20 FEET TO A POINT ON THE NORTH LINE OF SAID SECTION 8 WHICH BEARS NORTH 89° 26' EAST 820.00 FEET FROM THE NORTH QUARTER SECTION CORNER OF SECTION 8; THENCE ALONG THE NORTH LINE OF SECTION 8, NORTH 89° 26' EAST 990 FEET; THENCE ALONG THE CENTER LINE OF THE WEST SIDE CANAL AND ALONG THE EASTERLY LINE OF A STRIP OF LAND 75.00 FEET IN WIDTH, RESERVED AS A RIGHT OF WAY AND EASEMENT TO REPAIR, MAINTAIN AND OPERATE SAID WEST SIDE CANAL, BY DEED RECORDED April 29, 1929 IN BOOK 293 PAGE 346 OF OFFICIAL RECORDS, SOUTH 11° 38' EAST 5386.00 FEET TO A POINT ON THE SOUTH LINE OF SECTION 9 OF AFORESAID TOWNSHIP AND RANGE; THENCE LEAVING THE CENTER LINE OF THE WEST SIDE CANAL SOUTH 89° 46' WEST 265.00 FEET TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM ALL THE MINERAL RIGHTS, AS CONVEYED IN A DOCUMENT RECORDED JANUARY 9, 1995, DOCUMENT NO. 2613 OF OFFICIAL RECORDS.

APN: 086-070-05-00

PARCEL E:

THAT PORTION OF SECTION 8, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE SOUTH LINE OF SAID SECTION 8, 312 FEET WEST OF THE SOUTHEAST CORNER THEREOF; THENCE NORTH 15° 23' WEST TO A POINT IN THE NORTH LINE OF SAID SECTION; THENCE WEST ALONG SAID NORTH LINE, 820 FEET TO THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF SAID SECTION; THENCE SOUTH TO THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF SAID SECTION 8, THENCE EAST ALONG THE SOUTH LINE OF SAID SECTION TO THE POINT OF COMMENCEMENT.

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First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

EXCEPT 1/2 OF ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES AS RESERVED IN DEED FROM DOROTHY TWISSELMANN, ET AL, RECORDED MAY 29, 1969 IN BOOK 4164 PAGE 919 OF OFFICIAL RECORDS.

ALSO EXCEPT THEREFROM THE REMAINING 1/2 OF ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES, AS RESERVED BY HENRY DELL BUTTS, ET AL, IN DEED RECORDED NOVEMBER 3, 1975 IN BOOK 4922 PAGE 2335 OF OFFICIAL RECORDS.

EXCEPT ALL REMAINING OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS WITHIN OR UNDERLYING SAID LAND AS RESERVED IN DEED RECORDED JUNE 23, 1999, AS INSTRUMENT NO. 0199089098, OF OFFICIAL RECORDS.

APN: 086-070-11-00

PARCEL F:

PARCEL B OF CERTIFICATE OF COMPLIANCE NO. 2080 AS PER THAT CERTAIN CERTIFICATE OF COMPLIANCE RECORDED MARCH 29, 2000 AS DOCUMENT NO. 0200036808 OF OFFICIAL RECORDS, BEING THAT PORTION OF SECTION 7, TOWNSHIP 28 SOUTH, RANGE 22 EAST, LYING EAST OF THAT PORTION OF THE CALIFORNIA AQUEDUCT CONVEYED TO THE STATE OF CALIFORNIA.

EXCEPTING THEREFROM ALL OIL, GAS AND OTHER HYDROCARBONS, NON-HYDROCARBON GASES OR GASEOUS SUBSTANCES, ALL OTHER MINERALS OF WHATSOEVER NATURE, LYING ABOVE A DEPTH OF 7000 FEET SUBSEA, WITHOUT REGARD TO SIMILARITY TO THE ABOVE-MENTIONED SUBSTANCES (HEREINAFTER "SAID SUBSTANCES") IN AND UNDER THE FOLLOWING DESCRIBED LANDS IN THE COUNTY OF KERN, STATE OF CALIFORNIA, TOGETHER WITH THE EXCLUSIVE RIGHT TO INJECT, STORE AND REMOVE PRODUCED WATER IN THE TULARE AQUIFER FORMATION AND WITH THE NON-EXCLUSIVE RIGHT FROM TIME TO TIME TO ENTER SAID LANDS TO BORE OR DRILL AND MAINTAIN WELLS AND OTHER WORKS INTO, THROUGH AND UNDER SAID LANDS FOR THE PURPOSES OF EXPLORING FOR AND PRODUCING SAID SUBSTANCES AND THE RIGHTS TO INJECT, STORE AND REMOVE FROM AND THROUGH SAID BORES, WELLS OR WORKS, PRODUCED WATER TOGETHER WITH THE RIGHT TO PERFORM ANY AND ALL OPERATIONS DEEMED BY GRANTEE NECESSARY OR CONVENIENT FOR THE EXERCISE OF SUCH RIGHTS, AS CONVEYED TO SHELL WESTERN E & P, INC., A DELAWARE CORPORATION, BY DEED RECORDED NOVEMBER 6, 1987 IN BOOK 6064 PAGE 2349, DOCUMENT NO. 055407, OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM, ALL MINERAL RIGHTS CONVEYED TO CALIFORNIA MINERALS, L.P., PURSUANT TO THAT CERTAIN MINERAL DEED DATED DECEMBER 29, 1998, RECORDED DECEMBER 30, 1998 AS DOCUMENT NO. 0198184684, OFFICIAL RECORDS OF KERN COUNTY, STATE OF CALIFORNIA.

ALSO EXCEPTING FROM THE ABOVE LAND (EXCEPT THE WEST HALF OF THE SOUTHWEST QUARTER AND THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER), ALL MINERAL RIGHTS CONVEYED TO CALIFORNIA MINERALS, L.P., PURSUANT TO THAT CERTAIN MINERAL DEED DATED DECEMBER 29, 1998, RECORDED DECEMBER 30, 1998 AS DOCUMENT NO. 0198184684, OFFICIAL RECORDS OF KERN COUNTY, STATE OF CALIFORNIA.

ALSO EXCEPTING AND RESERVING UNTO CHEVRON U.S.A., INC., A CORPORATION, ITS SUCCESSORS AND ASSIGNS: ALL OIL, GAS AND OTHER HYDROCARBONS, NON-HYDROCARBON GASES OR GASEOUS SUBSTANCES; ALL OTHER MINERALS OF WHATSOEVER NATURE, WITHOUT REGARD TO SIMILARITY TO THE ABOVE-MENTIONED SUBSTANCES; AND ALL SUBSTANCES THAT MAY BE PRODUCED THEREWITH FROM THE PROPERTY, BY DEED RECORDED 3/29/00 AS DOCUMENT NO. 0200036809, OF OFFICIAL RECORDS;

ALSO EXCEPTING AND RESERVING UNTO CHEVRON U.S.A., INC., A CORPORATION, ITS SUCCESSORS AND ASSIGNS: ALL GEOTHERMAL RESOURCES, EMBRACING INDIGENOUS STEAM, HOT WATER AND HOT BRINES, STEAM AND OTHER GASES, HOT WATER AND HOT BRINES RESULTING FROM WATER, GAS OR OTHER FLUIDS ARTIFICIALLY INTRODUCED INTO 
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First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

SUBSURFACE FORMATIONS; HEAT OR THE ASSOCIATED ENERGY FOUND BENEATH THE SURFACE OF THE EARTH; AND BY-PRODUCTS OF ANY OF THE FOREGOING SUCH AS MINERALS (EXCLUSIVE OF OIL OR HYDROCARBON GAS THAT CAN BE SEPARATELY PRODUCED) WHICH ARE FOUND IN SOLUTION OR ASSOCIATION WITH OR DERIVED FROM ANY OF THE FOREGOING FOUND ON OR UNDER THE PROPERTY, A DEED RECORDED 3/29/00 AS DOCUMENT NO. 0200036809, OF OFFICIAL RECORDS;

ALSO EXCEPTING AND RESERVING UNTO CHEVRON U.S.A., INC., A CORPORATION, ITS SUCCESSORS AND ASSIGNS: THE SOLE AND EXCLUSIVE RIGHT FROM TIME TO TIME TO BORE OR DRILL AND MAINTAIN WELLS AND OTHER WORKS INTO AND THROUGH THE PROPERTY AND ADJOINING STREETS, ROADS AND HIGHWAYS FOR THE PURPOSE OF EXPLORING FOR AND PRODUCING ENERGY RESOURCES, THE RIGHT TO PRODUCE, INJECT, STORE AND REMOVE FROM AND THROUGH SAID BORES, WELLS OR WORKS, OIL, GAS, WATER, AND OTHER SUBSTANCES OF WHATEVER NATURE; AND THE RIGHT TO PERFORM ANY AND ALL OPERATIONS DEEMED BY SELLER NECESSARY OR CONVENIENT FOR THE EXERCISE OF SUCH RIGHTS, INCLUDING BUT NOT LIMITED TO THE RIGHT TO CONDUCT SEISMIC TESTING AND CONSTRUCT, MAINTAIN AND OPERATE PIPELINES, VALVES, CATHODIC PROTECTION FACILITIES AND APPURTENANCES, BY DEED RECORDED 3/29/000 AS DOCUMENT NO. 0200036809, OF OFFICIAL RECORDS;

APN: 086-070-18-00

PARCEL G:

PARCEL ONE:

THE SOUTH HALF OF THE NORTHWEST QUARTER AND THE NORTH HALF OF THE SOUTHWEST QUARTER OF SECTION 8, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPT THEREFROM THAT PORTION OF THE SOUTH HALF OF THE NORTHWEST QUARTER CONVEYED TO THE BARNES SCHOOL DISTRICT AND DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT 450 FEET WEST OF THE NORTHEAST CORNER OF THE SOUTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION 8; THENCE WEST 315 FEET ON THE LINE OF THE INTERSECTION BETWEEN THE NORTH HALF OF THE NORTHWEST QUARTER AND THE SOUTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION; THENCE SOUTH 315 FEET; THENCE EAST 315 FEET AND THENCE NORTH 315 FEET TO THE POINT OF BEGINNING.

ALSO EXCEPT THEREFROM ALL OIL AND GAS WITHIN OR UNDERLYING SAID LAND, AS RESERVED IN THE PATENT FROM THE UNITED STATES OF AMERICA, RECORDED IN BOOK 19 PAGE 283 OF PATENTS.

EXCEPT ALL REMAINING OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS WITHIN OR UNDERLYING SAID LAND AS RESERVED IN DEED RECORDED JUNE 23, 1999, AS INSTRUMENT NO. 0199089098, OF OFFICIAL RECORDS. (AP 086-070-03)

APN: 086-070-20-00 (PORTION)

PARCEL TWO:

THE NORTH HALF OF THE NORTHWEST QUARTER OF SECTION 8, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPT THEREFROM ALL OIL AND GAS WITHIN OR UNDERLYING SAID LAND, AS RESERVED IN THE PATENT FROM THE UNITED STATES OF AMERICA, RECORDED IN BOOK 19 PAGE 283 OF PATENTS.

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First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

EXCEPT ALL REMAINING OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS WITHIN OR UNDERLYING SAID LAND AS RESERVED IN DEED RECORDED JUNE 23, 1999, AS INSTRUMENT NO. 0199089098, OF OFFICIAL RECORDS. (AP 086-070-02)

APN: 086-070-20-00 (PORTION)

PARCEL THREE:

THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER; AND THE WEST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 8, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, IN THE UNINCORPORATED AREA OF THE COUNTY OF KERN, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPT ALL OIL, GAS AND OTHER HYDROCARBON SUBSTANCES AND MINERALS IN, UNDER AND UPON SAID LAND, AS RESERVED IN THE PATENT FROM THE UNITED STATES OF AMERICA, DATED July 26, 1916, RECORDED NOVEMBER 30, 1917 IN BOOK 19 PAGE 282 OF PATENTS, AND IN THE DEEDS FROM ERNEST C. TWISSELMAN, AS EXECUTOR AND ELEANORA M. TWISSELMANN AND JACOB C. MARTENS, DATED DECEMBER 22, 1950, RECORDED JANUARY 26, 1951 AND IN DEED RECORDED July 23, 1943 IN BOOK 1151 PAGE 120 OF OFFICIAL RECORDS.

EXCEPT ALL REMAINING OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS WITHIN OR UNDERLYING SAID LAND AS RESERVED IN DEED RECORDED JUNE 23, 1999, AS INSTRUMENT NO. 0199089098, OF OFFICIAL RECORDS. (AP 086-070-09)

APN: 086-070-20-00 (PORTION)

PARCEL FOUR:

THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 8, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, IN THE UNINCORPORATED AREA OF THE COUNTY OF KERN, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.
EXCEPT ALL OIL AND GAS IN SAID LAND TO THE UNITED STATES OF AMERICA OR PERSONS AUTHORIZED BY IT, THE RIGHT TO PROSPECT FOR, MINE, AND REMOVE SUCH DEPOSITS FROM THE SAME UPON COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF THE ACT OF JULY 17, 1914 (38 STAT 509), AS RECITED IN PATENT DATED July 26, 1912 FROM THE UNITED STATES OF AMERICA TO ALBERT C. EDWARDS, RECORDED IN BOOK 19 PAGE 282 OF PATENTS.

EXCEPT ALL REMAINING OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS WITHIN OR UNDERLYING SAID LAND AS RESERVED IN DEED RECORDED JUNE 23, 1999, AS INSTRUMENT NO. 0199089098, OF OFFICIAL RECORDS. (AP 086-070-08)

APN: 086-070-20-00 (PORTION)

PARCEL FIVE:

BEGINNING AT A POINT 450 FEET WEST FROM THE NORTHEAST CORNER OF THE SOUTH HALF OF THE NORTHWEST QUARTER OF SECTION 8, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, RUNNING THENCE WEST 315 FEET ON THE LINE OF INTERSECTION BETWEEN THE NORTH HALF OF THE NORTHWEST QUARTER AND THE SOUTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION 8, RUNNING THENCE SOUTH 315 FEET, THENCE EAST 315 FEET, THENCE NORTH 315 FEET TO THE POINT OF BEGINNING.

APN: 086-070-20-00 (PORTION)

PARCEL H:

    7
First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

LOTS 1 AND 2 OF THE NORTHWEST QUARTER, AND LOTS 1 AND 2 OF THE NORTHEAST QUARTER OF SECTION 6, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPT ALL OIL, GAS, PETROLEUM AND OTHER HYDROCARBON SUBSTANCES PRODUCED AND SAVED FROM SAID LAND, AS EXCEPTED IN DEED FROM EDWARD J. CARR AND MARY R. CARR, HUSBAND AND WIFE; WILLIAM N. LAGOMARSINO AND BERTHA LAGOMARSINO, HUSBAND AND WIFE; HENRY J. OLIVA AND GENEVA OLIVA, HUSBAND AND WIFE, RECORDED DECEMBER 31, 1964 IN BOOK 3799 PAGE 827 OF OFFICIAL RECORDS.

ALSO EXCEPT ANY REMAINING OIL, GAS, PETROLEUM AND OTHER HYDROCARBON SUBSTANCES AND MINERALS AS RESERVED BY WILLIAM PAUL BLAIR, ET UX, ET AL, IN DEED RECORDED MARCH 11, 1977 IN BOOK 5013 PAGE 1102 OF OFFICIAL RECORDS.

EXCEPT ALL REMAINING OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS WITHIN OR UNDERLYING SAID LAND AS RESERVED IN DEED RECORDED JUNE 23, 1999, AS INSTRUMENT NO. 0199089098, OF OFFICIAL RECORDS. (AP 086-040-11)

APN: 086-040-11-00

PARCEL I:

PARCEL 1:

THAT PORTION OF THE NORTH HALF OF SECTION 1, TOWNSHIP 28 SOUTH, RANGE 21 EAST, MOUNT DIABLO BASE AND MERIDIAN, LYING EAST OF THE EASTERLY BOUNDARY LINE OF THE CALIFORNIA AQUEDUCT DEEDED TO THE STATE OF CALIFORNIA SEPTEMBER 30, 1966 IN BOOK 3985 PAGE 214 OF OFFICIAL RECORDS, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPTING THEREFROM (1) ALL MINERALS OF WHATSOEVER NATURE (INCLUDING, BUT NOT LIMITED TO, OIL, GAS, OTHER HYDROCARBONS AND ASSOCIATED SUBSTANCES) ON, UNDER, OR THAT MAY BE PRODUCED FROM THOSE ZONES AND FORMATIONS LOCATED BELOW A DEPTH OF FIFTY (50) FEET BELOW THE SURFACE OF SAID LANDS; (2) THE RIGHT TO LOCATE WELLS, PERFORM GEOPHYSICAL AND OTHER MINERAL EXPLORATION ACTIVITIES ON THE SURFACE OF THE LANDS CONVEYED HEREUNDER AND TO DRILL THROUGH THAT PORTION OF THE SUBSURFACE CONVEYED HEREUNDER FOR THE PURPOSE OF PRODUCING THE MINERALS RESERVED HEREUNDER OR FOR THE PURPOSES OF INJECTING, STORING, OR REMOVING OIL, GAS, OTHER MINERALS, OR PRODUCED WATER, FROM SAID ZONES AND FORMATIONS; (3) ALL PORE SPACES AND PORE SPACE RIGHTS BELOW A DEPTH OF FORTY FEET (40') BELOW THE SURFACE OF THE EARTH, ALONG WITH THE RIGHT TO UTILIZE SAID PORE SPACES AND PORE SPACE RIGHTS FOR THE STORAGE OF OIL FIELD BRINES, WASTE WATERS ASSOCIATED WITH OIL FIELD OPERATIONS, AND OTHER LIQUIDS AS RESERVED BY CALRESOURCES LLC, A CALIFORNIA LIMITED LIABILITY COMPANY IN DEED RECORDED DECEMBER 4, 1997 AS INSTRUMENT NO. 0197160296 OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM ALL OF GRANTOR'S RIGHT, TITLE AND INTEREST IN AND TO ALL PORE SPACES AND PORE SPACE RIGHTS BELOW A DEPTH OF THIRTY (30) FEET BELOW THE SURFACE OF THE EARTH ALONG WITH THE RIGHT TO UTILIZE SAID PORE SPACES AND PORE SPACE RIGHTS FOR THE STORAGE OR DISPOSAL OF OIL FIELD BRINES, WASTE WATERS ASSOCIATED WITH OIL FIELD OPERATIONS, AND OTHER LIQUIDS, INSOFAR AS SUCH PORE SPACES UNDERLIE SAID LAND, AS CONVEYED TO AERA ENERGY LLC, A CALIFORNIA LIMITED LIABILITY COMPANY BY DEED FROM BELRIDGE FARMS AND PACKING LLC, A CALIFORNIA LIMITED LIABILITY COMPANY RECORDED DECEMBER 5, 1997 AS DOCUMENT NO. 0197161487.

APN: 085-180-14-00 (PORTION)

PARCEL 2:

THAT PORTION OF THE SOUTH HALF OF SECTION 1, TOWNSHIP 28 SOUTH, RANGE 21 EAST, MOUNT DIABLO BASE AND MERIDIAN, LYING EAST OF THE EASTERLY BOUNDARY LINE OF THE 
    8
First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

CALIFORNIA AQUEDUCT DEEDED TO THE STATE OF CALIFORNIA SEPTEMBER 30, 1966 IN BOOK 3985 PAGE 214 OF OFFICIAL RECORDS, ACCORDING TO THE OFFICIAL PLAT THEREOF.

ALSO EXCEPTING THEREFROM (1) ALL MINERALS OF WHATSOEVER NATURE (INCLUDING, BUT NOT LIMITED TO, OIL, GAS, OTHER HYDROCARBONS AND ASSOCIATED SUBSTANCES) ON, UNDER, OR THAT MAY BE PRODUCED FROM THOSE ZONES AND FORMATIONS LOCATED BELOW A DEPTH OF FIFTY (50) FEET BELOW THE SURFACE OF SAID LANDS; (2) THE RIGHT TO LOCATE WELLS, PERFORM GEOPHYSICAL AND OTHER MINERAL EXPLORATION ACTIVITIES ON THE SURFACE OF THE LANDS CONVEYED HEREUNDER AND TO DRILL THROUGH THAT PORTION OF THE SUBSURFACE CONVEYED HEREUNDER FOR THE PURPOSE OF PRODUCING THE MINERALS RESERVED HEREUNDER OR FOR THE PURPOSES OF INJECTING, STORING, OR REMOVING OIL, GAS, OTHER MINERALS, OR PRODUCED WATER, FROM SAID ZONES AND FORMATIONS; (3) ALL PORE SPACES AND PORE SPACE RIGHTS BELOW A DEPTH OF FORTY FEET (40') BELOW THE SURFACE OF THE EARTH, ALONG WITH THE RIGHT TO UTILIZE SAID PORE SPACES AND PORE SPACE RIGHTS FOR THE STORAGE OF OIL FIELD BRINES, WASTE WATERS ASSOCIATED WITH OIL FIELD OPERATIONS, AND OTHER LIQUIDS AS RESERVED BY CALRESOURCES LLC, A CALIFORNIA LIMITED LIABILITY COMPANY IN DEED RECORDED DECEMBER 4, 1997 AS INSTRUMENT NO. 0197160296, OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM ALL OF GRANTOR'S RIGHT, TITLE AND INTEREST IN AND TO ALL PORE SPACES AND PORE SPACE RIGHTS BELOW A DEPTH OF THIRTY (30) FEET BELOW THE SURFACE OF THE EARTH ALONG WITH THE RIGHT TO UTILIZE SAID PORE SPACES AND PORE SPACE RIGHTS FOR THE STORAGE OR DISPOSAL OF OIL FIELD BRINES, WASTE WATERS ASSOCIATED WITH OIL FIELD OPERATIONS, AND OTHER LIQUIDS, INSOFAR AS SUCH PORE SPACES UNDERLIE SAID LAND, AS CONVEYED TO AERA ENERGY LLC, A CALIFORNIA LIMITED LIABILITY COMPANY BY DEED FROM BELRIDGE FARMS AND PACKING LLC, A CALIFORNIA LIMITED LIABILITY COMPANY RECORDED DECEMBER 5, 1997 AS DOCUMENT NO. 0197161487.

APN: 085-180-14-00 (PORTION)

PARCEL J:

PARCEL 1:

THE SOUTHWEST QUARTER, THE EAST HALF OF THE SOUTHEAST QUARTER AND THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 6, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPT THE FOLLOWING DESCRIBED PARCELS:

PARCEL A:

BEGINNING AT A 1-1/2 INCH IRON PIPE WITH BRASS CAP MARKED CA 3361 FROM WHICH THE SOUTHWEST CORNER OF SAID SECTION 6, BEARS SOUTH 04° 29' 32" WEST, 1,301.57 FEET, SAID POINT OF BEGINNING HAVING COORDINATES Y=738,257.43 AND X=1,508,087.22; THENCE FROM SAID POINT OF BEGINNING SOUTH 28° 42' 27" EAST, 1,500.81 FEET TO A POINT ON THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 6; THENCE ALONG SAID SOUTH LINE NORTH 88° 41' 38" WEST, 662.32 FEET TO A POINT FROM WHICH THE SOUTHWEST CORNER OF SAID SECTION 6 BEARS NORTH 88° 41' 38" 220.74 FEET; THENCE LEAVING SAID SOUTH LINE FROM A TANGENT WHICH BEARS NORTH 28° 21' 26" WEST ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 2,140.00 FEET, A CENTRAL ANGLE OF 02° 16' 57" AN ARC DISTANCE OF 85.25 FEET (THE LONG CHORD OF WHICH BEARS NORTH 29° 29' 54" WEST 85.25 FEET); THENCE NORTH 30° 07' 01" WEST, 345.81 FEET TO A POINT HEREIN DESIGNATED "F" ON THE WEST LINE OF SAID SECTION 6; THENCE ALONG SAID WEST LINE NORTH 00° 48' 26" EAST, 1077.49 FEET; THENCE LEAVING SAID WEST LINE FROM A TANGENT WHICH BEARS SOUTH 27° 03' 04" EAST ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 2,700.00 FEET, A CENTRAL ANGLE OF 03° 35' 19" AN ARC DISTANCE OF 169.11 FEET (THE LONG CHORD OF WHICH BEARS SOUTH 28° 50' 43" EAST, 169.08 FEET) TO THE POINT OF BEGINNING.

    9
First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

PARCEL B:

BEGINNING AT THE SOUTHWEST CORNER OF SECTION 6, SAID POINT OF BEGINNING HAVING COORDINATES Y=736,959.85 AND X=1,507,985.27; THENCE FROM SAID POINT OF BEGINNING ALONG THE WEST LINE OF SAID SECTION 6, NORTH 00° 48' 26" EAST, 368.33 FEET; THENCE LEAVING SAID WEST LINE SOUTH 30° 07' 01" EAST, 345.81 FEET; THENCE FROM A TANGENT WHICH BEARS SOUTH 30° 38' 23" EAST, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 2,140.00 FEET, A CENTRAL ANGLE OF 02° 16' 57" AN ARC DISTANCE OF 85.25 FEET (THE LONG CHORD OF WHICH BEARS SOUTH 29° 29' 54" EAST, 85.25 FEET) TO A POINT ON THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 6; THENCE ALONG SAID SOUTH LINE NORTH 88° 41' 38" WEST, 220.74 FEET TO THE POINT OF BEGINNING.

ALSO EXCEPT ALL THE OIL AND GAS IN SAID LAND TOGETHER WITH THE RIGHT TO PROSPECT FOR, MINE AND REMOVE SUCH DEPOSITS FROM THE SAME UPON COMPLIANCE WITH THE CONDITIONS AND SUBJECT TO THE PROVISIONS AND LIMITATIONS OF THE ACT OF JULY 17, 1914 (38 STAT. 509), AS EXCEPTED AND RESERVED IN THE PATENT FROM THE UNITED STATES OF AMERICA, RECORDED IN BOOK 19 PAGE 107 OF PATENTS.

EXCEPT ALL REMAINING OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS WITHIN OR UNDERLYING SAID LAND AS RESERVED IN DEED RECORDED JUNE 23, 1999, AS INSTRUMENT NO. 0199089098, OF OFFICIAL RECORDS. (AP 086-040-09)

APN: 086-040-15-00 (PORTION)

PARCEL 2:

THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 6, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPT ALL OIL AND GAS AS RESERVED BY THE UNITED STATES OF AMERICA IN PATENT RECORDED DECEMBER 26, 1916 IN BOOK 19 PAGE 107, OF PATENTS.

EXCEPT ALL REMAINING OIL, GAS, HYDROCARBON SUBSTANCES AND MINERALS WITHIN OR UNDERLYING SAID LAND AS RESERVED IN DEED RECORDED JUNE 23, 1999, AS INSTRUMENT NO. 0199089098, OF OFFICIAL RECORDS. (AP 086-040-02)

APN: 086-040-15-00 (PORTION)

PARCEL K:

THE WEST HALF OF SECTION 5, TOWNSHIP 28 SOUTH, RANGE 22 EAST, MOUNT DIABLO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPTING THEREFROM, ALL MINERAL RIGHTS CONVEYED TO CALIFORNIA MINERALS, L.P., PURSUANT TO THAT CERTAIN MINERAL DEED DATED DECEMBER 29, 1998, RECORDED DECEMBER 30, 1998 AS DOCUMENT NO. 0198184684, OFFICIAL RECORDS OF KERN COUNTY, STATE OF CALIFORNIA.

ALSO EXCEPTING FROM THE ABOVE LAND (EXCEPT THE WEST HALF OF THE SOUTHWEST QUARTER AND THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER), ALL MINERAL RIGHTS CONVEYED TO CALIFORNIA MINERALS, L.P., PURSUANT TO THAT CERTAIN MINERAL DEED DATED DECEMBER 29, 1998, RECORDED DECEMBER 30, 1998 AS DOCUMENT NO. 0198184684, OFFICIAL RECORDS OF KERN COUNTY, STATE OF CALIFORNIA.

ALSO EXCEPTING AND RESERVING UNTO CHEVRON U.S.A., INC., A CORPORATION, ITS SUCCESSORS AND ASSIGNS: ALL OIL, GAS AND OTHER HYDROCARBONS, NON-HYDROCARBON GASES OR GASEOUS SUBSTANCES; ALL OTHER MINERALS OF WHATSOEVER NATURE, WITHOUT REGARD TO SIMILARITY TO THE ABOVE-MENTIONED SUBSTANCES; AND ALL 
    10
First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

SUBSTANCES THAT MAY BE PRODUCED THEREWITH FROM THE PROPERTY, BY DEED RECORDED 3/29/00 AS DOCUMENT NO. 0200036809 OF OFFICIAL RECORDS;

ALSO EXCEPTING AND RESERVING UNTO CHEVRON U.S.A., INC., A CORPORATION, ITS SUCCESSORS AND ASSIGNS: ALL GEOTHERMAL RESOURCES, EMBRACING INDIGENOUS STEAM, HOT WATER AND HOT BRINES, STEAM AND OTHER GASES, HOT WATER AND HOT BRINES RESULTING FROM WATER, GAS OR OTHER FLUIDS ARTIFICIALLY INTRODUCED INTO SUBSURFACE FORMATIONS; HEAT OR THE ASSOCIATED ENERGY FOUND BENEATH THE SURFACE OF THE EARTH; AND BY-PRODUCTS OF ANY OF THE FOREGOING SUCH AS MINERALS (EXCLUSIVE OF OIL OR HYDROCARBON GAS THAT CAN BE SEPARATELY PRODUCED) WHICH ARE FOUND IN SOLUTION OR ASSOCIATION WITH OR DERIVED FROM ANY OF THE FOREGOING FOUND ON OR UNDER THE PROPERTY, A DEED RECORDED 3/29/00 AS DOCUMENT NO. 0200036809 OF OFFICIAL RECORDS;

ALSO EXCEPTING AND RESERVING UNTO CHEVRON U.S.A., INC., A CORPORATION, ITS SUCCESSORS AND ASSIGNS: THE SOLE AND EXCLUSIVE RIGHT FROM TIME TO TIME TO BORE OR DRILL AND MAINTAIN WELLS AND OTHER WORKS INTO AND THROUGH THE PROPERTY AND ADJOINING STREETS, ROADS AND HIGHWAYS FOR THE PURPOSE OF EXPLORING FOR AND PRODUCING ENERGY RESOURCES, THE RIGHT TO PRODUCE, INJECT, STORE AND REMOVE FROM AND THROUGH SAID BORES, WELLS OR WORKS, OIL, GAS, WATER, AND OTHER SUBSTANCES OF WHATEVER NATURE; AND THE RIGHT TO PERFORM ANY AND ALL OPERATIONS DEEMED BY SELLER NECESSARY OR CONVENIENT FOR THE EXERCISE OF SUCH RIGHTS, INCLUDING BUT NOT LIMITED TO THE RIGHT TO CONDUCT SEISMIC TESTING AND CONSTRUCT, MAINTAIN AND OPERATE PIPELINES, VALVES, CATHODIC PROTECTION FACILITIES AND APPURTENANCES, BY DEED RECORDED 3/29/000 AS DOCUMENT NO. 0200036809 OF OFFICIAL RECORDS.

APN: 086-040-04-00

    11
First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

EXHIBIT D-1
LIENS AND LEASES

									
	Lessor
	Lessee
	Date(s)

	

	

	

	Dalton Lane Watsonville,
LLC, a California limited liability company
	Westside Strawberry Farms, Inc., a California corporation
	7/17/2018 (effective 11/1/2018; expires 10/31/2028)

	20th Avenue South Haven,
LLC, a Delaware limited liability company
	Blue Star Farms, Inc., a Michigan corporation
	8/1/2021 (expires 12/31/2026)

	Broadway Road Moorpark,
LLC, a Delaware limited liability company, as successor to original Lessor, Gladstone Land Corporation, a Maryland corporation, per amendment
	Waters Ranches, LLC, and
James Andrew Waters, III
	12/1/2013 (effective
12/16/2013; expires 11/30/2023

	East Shelton Road, LLC, a Delaware limited liability company
	Riverview, LLP, a Minnesota limited liability partnership
	11/27/2019 (Commencement Date 3/1/2020) – expires 2/28/2020); Amended 01/01/2021 effective date – expires 02/28/2035

	Spring Valley Road
Watsonville, LP, a Delaware limited partnership
	Golden State Bulb Growers,
Inc., a California corporation (as assignee of Gem-Pack Berries, LLC a Delaware limited liability company
	2/23/2015 (effective 10/1/2016;
expires 9/30/2022); assigned 11/1/17

	Sycamore Road Arvin, LP, a Delaware limited partnership
	Underwood Ranches, LP, a California limited partnership
	7/24/2014 (effective 11/1/2015; expires 10/31/2024); amended 2/1/2016 & 9/28/2018

    12
First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

									
	Naumann Road Oxnard, LP, a Delaware limited partnership
	Reiter Brothers, Inc., a California corporation
	7/8/2014 (effective 7/23/2014; expires 7/31/2017). Extension signed on 5/15/2017 and expires 7/31/2020; Amended 03/27/2020 – expires July 31, 2023

	West Sierra Avenue Earlimart CA, LP, a Delaware limited partnership
	Etchegaray Farms LLC, a California limited liability company
	October 2, 2020 (Commencement Date 12/17/2020; expires
10/31/2030; subject to 1 option to renew for 10 years)

	Lerdo Highway Shafter CA,
LP, a Delaware limited partnership
	Lerdo Farming, LLC, a
California limited liability company
	June 3, 2021 (Commencement
Date 6/4/21; expires later of (i) 10/31/2031 and (ii) completion of 2031 crop harvest (but no later than 12/15/2031); subject  to 3 options to extend for 10 years each)

	West Lerdo Highway Lost Hills CA, LP, a Delaware limited partnership
	Stiefvater Farming Corporation, a California corporation	November 10, 2021, Effective Date; expires later of (i) 10/31/2031 and (ii) completion of 2031 crop harvest (but no later than 12/15/2031);  

    13
First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

EXHIBIT E
Property Owners
DALTON LANE WATSONVILLE, LLC, a California limited liability company
BROADWAY ROAD MOORPARK, LLC, a Delaware limited liability company
20TH AVENUE SOUTH HAVEN, LLC, a Delaware limited liability company
EAST SHELTON ROAD, LLC, a Delaware limited liability company
SYCAMORE ROAD ARVIN, LP, a Delaware limited partnership
SPRING VALLEY ROAD WATSONVILLE, LP, a Delaware limited partnership
NAUMANN ROAD OXNARD, LP, a Delaware limited partnership
WEST SIERRA AVENUE EARLIMART CA, LP, a Delaware limited partnership
LERDO HIGHWAY SHAFTER CA, LP, a Delaware limited partnership
WEST LERDO HIGHWAY LOST HILLS CA, LP, a Delaware limited partnership
32085996.2
    14
First Amendment to Loan Agreement
Gladstone – Note F and Lost Hills Addition
Loan Nos. 196915, 198677, 200539 and 202051
113364452.10053564-00532

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