Document:

Exhibit 10.3

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL SELECTED BY THE HOLDER, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

 

EDGAR EXPRESS, INC.

CLASS B WARRANT

 

 

Purchaser:  [ ]

 

Date of Grant:  September 25, 2018

 

Purchase Price:  $10,000.00

 

Number of Shares Underlying Warrant: 
1,250,000

 

Exercise Price Per Share:  $5.00

 

Warrant Number: B-1

 

 

EDGAR EXPRESS, INC., a
Utah corporation (the “Corporation”), is pleased to grant you the opportunity to purchase a Warrant (the
“Warrant”) to purchase shares of the Corporation’s authorized common stock, par value $0.001 per
share, subject to the terms and conditions set forth in this Warrant (this “Warrant”).  The Date
of Grant of the Warrant, the number of shares issuable upon exercise of the Warrant (the “Warrant Shares”),
and the Exercise Price per share are stated above.  The Purchase Price shall be paid to the Corporation no later than seventy-five
(75) calendar days following the Date of Grant and if not so paid this Warrant shall terminate without further action. 

    	 	1	 

    	 

    

 

 

		1.	Definitions.  As used in this Warrant, the following terms have the meanings
set forth below:

 

		(a)	“Board of Directors” means the board of directors of the Corporation.

(b)              
“Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions
in the State of Delaware are authorized or obligated by law or executive order to close.

(c)               
“Cause” shall mean, as determined in good faith by a unanimous vote of the Board of Directors
(excluding you) at a meeting of the Board of Directors held for such purpose, and where you and your counsel had an opportunity
(on at least 15 days prior notice) to be heard before the Board of Directors, your:

(i)     
conviction, plea of guilty or no contest to any felony;

(ii)     
gross negligence or willful misconduct in the performance of your duties;

(iii)     
drug addiction or habitual intoxication;

(iv)     
commission of fraud, embezzlement, misappropriation of funds, breach of fiduciary duty, violation of law, or a material
act of dishonesty against the Corporation, in each case that the Board of Directors determines was willful;

(v)     
material and continued breach of any employment agreement between you and the Corporation, after notice for substantial
performance is delivered by the Corporation in writing that identifies in reasonable detail the manner in which the Corporation
believes you are in breach of such employment agreement;

(vi)     
willful material breach of Corporation policy or code of conduct; or

(vii)     
willful and continued failure to substantially perform your duties under any employment agreement between you and the Corporation
(other than such failure resulting from your incapacity due to physical or mental illness);

unless, in each case, the event constituting
Cause is curable and has been cured by you within 30 days of your receipt of notice from the Corporation that an event constituting
Cause has occurred and specifying the details of such event.  If you cure an event during such period that would otherwise
constitute Cause, then the Corporation will have no right to terminate your employment for Cause.  For purposes of this provision,
no act or omission on your part shall be considered “willful” unless it is done or omitted not in good faith or without
reasonable belief that the act or omission was in the best interests of the Corporation.  Any act or omission based upon a
resolution duly adopted by the Board of Directors or advice of counsel for the Corporation shall be conclusively presumed to have
been done or omitted in good faith and in the best interests of the Corporation.

    	 	2	 

    	 

    

 

 

(d)              
“Change in Control” means the occurrence of any of the following events: 

(i)     
A “change in the ownership of the Corporation” which shall occur on the date that any one person, or more than
one person acting as a group, acquires ownership of stock in the Corporation that, together with stock held by such person or group,
constitutes more than 50% of the total fair market value or total voting power of the stock of the Corporation; however, if any
one person or more than one person acting as a group, is considered to own more than 50% of the total fair market value or total
voting power of the stock of the Corporation, the acquisition of additional stock by the same person or persons will not be considered
a “change in the ownership of the Corporation” (or to cause a “change in the effective control of the Corporation”
within the meaning of Section 1(d)(ii) below) and an increase of the effective percentage of stock owned by any one person, or
persons acting as a group, as a result of a transaction in which the Corporation acquires its stock in exchange for property will
be treated as an acquisition of stock for purposes of this paragraph; provided further, however, that for purposes of this Section
1(d)(i), the following acquisitions shall not constitute a Change in Control:  (A) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Corporation or any entity controlled by the Corporation, or (B) any acquisition
by investors (immediately prior to such acquisition) in the Corporation for financing purposes, as determined by the Board of Directors
in its sole discretion.  This Section 1(d)(i) applies only when there is a transfer of the stock of the Corporation (or issuance
of stock) and stock in the Corporation remains outstanding after the transaction.

(ii)     
A “change in the effective control of the Corporation” which shall occur on the date that either (A) any one
person, or more than one person acting as a group, acquires (or has acquired during the twelve month period ending on the date
of the most recent acquisition by such person or persons) ownership of stock of the Corporation possessing 35% or more of the total
voting power of the stock of the Corporation, except for (1) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Corporation or any entity controlled by the Corporation, or (2) any acquisition by investors (immediately
prior to such acquisition) in the Corporation for financing purposes, as determined by the Board of Directors in its sole discretion;
or (B) a majority of the members of the Board of Directors are replaced during any twelve-month period by directors whose appointment
or election is not endorsed by a majority of the members of the Board of Directors prior to the date of the appointment or election. 
For purposes of a “change in the effective control of the Corporation,” if any one person, or more than one person
acting as a group, is considered to effectively control the Corporation within the meaning of this Section 1(d)(ii), the acquisition
of additional control of the Corporation by the same person or persons is not considered a “change in the effective control
of the Corporation,” or to cause a “change in the ownership of the Corporation” within the meaning of Section
1(d)(i) above.

(iii)     
The occurrence of any of the transactions contemplated by Section 1(d)(i) or 1(d)(ii) above in connection with which the
stock of the Corporation ceases to be publicly traded on a national securities exchange.

    	 	3	 

    	 

    

 

(iv)     
A “change in the ownership of a substantial portion of the Corporation’s assets” which shall occur on
the date that any one person, or more than one person acting as a group, acquires (or has acquired during the twelve month period
ending on the date of the most recent acquisition by such person or persons) assets of the Corporation that have a total gross
fair market value equal to or more than 60% of the total gross fair market value of all the assets of the Corporation immediately
prior to such acquisition or acquisitions; provided that the proceeds of such acquisition or acquisitions are distributed to the
shareholders of the Corporation in connection with such acquisition or acquisitions.  For this purpose, gross fair market
value means the value of the assets of the Corporation, or the value of the assets being disposed of, determined without regard
to any liabilities associated with such assets.  Any transfer of assets to an entity that is controlled by the shareholders
of the Corporation immediately after the transfer, as provided in guidance issued pursuant to Section 409A of the Code, shall not
constitute a Change in Control.

For purposes of this Section
1(d), the provisions of Section 318(a) of the Code regarding the constructive ownership of stock will apply to determine stock
ownership; provided, that stock underlying unvested options (including options exercisable for stock that is not substantially
vested) will not be treated as owned by the individual who holds the option.  In addition, for purposes of this Section 1(d),
“Corporation” includes (A) the Corporation and (B) an entity that is a stockholder owning more than 50% of the total
fair market value and total voting power (a “Majority Shareholder”) of the Corporation, or any entity in a chain of
entities in which each entity is a Majority Shareholder of another entity in the chain, ending in the Corporation.

 

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

(f)               
“Common Stock” means the authorized common stock, par value $0.001 per share, as described in
the Corporation’s Amended and Restated Articles of Incorporation.

(g)              
“Date of Grant” means the date designated as such in the first paragraph of this Warrant.

(h)              
“Disability” means the good faith determination by the Board of Directors that you are permanently
disabled.

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

(j)                
“Exercise Notice” means the written exercise notice in the form provided by the Board of Directors.

(k)              
“Exercise Price” means the exercise price per share designated as such in the first paragraph
of this Warrant.

(l)                
“Expiration Date” means September 25, 2028.

    	 	4	 

    	 

    

 

(m)            
“Fair Market Value” per share of Common Stock on any relevant date shall be determined in accordance
with the following provisions:

(i)                       
If the Common Stock is at the time traded on Nasdaq, then the Fair Market Value shall be the closing selling price per share
of Common Stock on the date in question, as the price is reported by Nasdaq.  If there is no closing selling price for the
Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date
for which such quotation exists.

(ii)                       
If the Common Stock is at the time listed on any stock exchange, then the Fair Market Value shall be the closing selling
price per share of Common Stock on the date in question on the stock exchange determined by the Board of Directors to be the primary
market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange.  If
there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation exists.

(iii)                       
If the Common Stock is at the time neither listed on any stock exchange nor traded on Nasdaq, then the Fair Market Value
shall be determined in good faith by the Board of Directors after taking into account such factors as the Board of Directors shall
deem appropriate.

(n)              
“Good Reason” shall mean the occurrence of any of the following events without your written consent: 

(i)     
a material diminution in your base compensation;

(ii)     
a material diminution in your authority, duties or responsibilities;

(iii)     
you no longer report directly to the Board of Directors; or

(iv)     
any other action or inaction that constitutes a material breach by the Corporation of any employment agreement with you;

provided that, in each case, you must provide
a notice of termination to the Corporation within 60 days of the initial occurrence of the event constituting Good Reason, and
the Corporation shall have the opportunity to cure such event within 30 days of receiving such notice.  If the Corporation
cures an event during such period that would otherwise constitute Good Reason, then you will have no right to terminate your employment
for Good Reason.  Following the occurrence of a Change in Control, any claim by you that Good Reason exists shall be presumed
to be correct unless a court of competent jurisdiction determines that the Corporation has established by clear and convincing
evidence that Good Reason does not exist.

 

(o)  
“Immediate Family” means your child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law,
including adoptive relationships.

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(p)  
“Market Price” means, with respect to a particular security, on any date of determination, the
last reported sale price regular way or, in case no such reported sale takes place on such day, the average of the last closing
bid and ask prices regular way, in either case on the principal national securities exchange on which the applicable securities
are listed or admitted to trading, or if not listed or admitted to trading on any national securities exchange, the average of
the closing bid and ask prices as furnished by two members of the Financial Industry Regulatory Authority, Inc. selected from time
to time by the Company for that purpose. “Market Price” shall be determined without reference to after hours or extended
hours trading. If such security is not listed and traded in a manner that the quotations referred to above are available for the
period required hereunder, the Market Price per share of Common Stock shall be deemed to be the Fair Market Value per share of
such security as determined in good faith by the Board of Directors. For the purposes of determining the Market Price of the Common
Stock on the “trading day” preceding, on or following the occurrence of an event, (i) that trading day shall be deemed
to commence immediately after the regular scheduled closing time of trading on the Nasdaq Global Market or, if trading is closed
at an earlier time, such earlier time and (ii) that trading day shall end at the next regular scheduled closing time, or if trading
is closed at an earlier time, such earlier time (for the avoidance of doubt, and as an example, if the Market Price is to be determined
as of the last trading day preceding a specified event and the closing time of trading on a particular day is 4:00 p.m. and the
specified event occurs at 5:00 p.m. on that day, the Market Price would be determined by reference to such 4:00 p.m. closing price).

(q)  
“Nasdaq” means The Nasdaq Stock Market.

(r)    
“Ordinary Cash Dividends” means a regular quarterly cash dividend on shares of Common Stock out
of surplus or net profits legally available therefor.

2.     
Vesting and Exercisability.  This Warrant will be fully vested at the time of purchase.  Except
as provided in Section 3, you may only exercise your Warrant after the fifth (5th) year anniversary of the Date of Grant (September
25, 2023) and before the Expiration Date.  To the extent it has not already been exercised, the Warrant shall terminate on
the Expiration Date.

3.     
Special Lifting of Restrictions and Change in Control.

(a)   
Immediately prior to the effective date of a Change in Control or upon the date of a termination of your employment by the
Company without Cause or by you for Good Reason, the Warrant shall be immediately exercisable and transferable, notwithstanding
the restrictions enumerated in Section 2.

(b)  
Notwithstanding the provisions of Section 6, in the event of a termination of your employment by reason of your death or
Disability, you or your estate (as the case may be) may sell the Warrant to a third party; provided, however, that all terms and
restrictions applicable to the Warrant prior to the sale shall continue to apply to the Warrant after the sale to a third party
purchaser.

    	 	6	 

    	 

    

 

(c)   
In the event of a Change in Control, this Warrant shall become exercisable immediately prior to the Change in Control and,
if not exercised by you prior to the Change in Control, this Warrant must be assumed by the successor entity in connection with
a Change in Control, and appropriately adjusted, immediately after such Change in Control, to apply to the number and class of
securities which would have been issuable to you upon the consummation of such Change in Control had the Warrant been exercised
immediately prior to such Change in Control, and appropriate adjustments shall also be made to the Exercise Price, provided the
aggregate Exercise Price shall remain the same.

(d)  
Subject to Section 5, this Warrant shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize,
otherwise change its capital or business structure, to merge, consolidate, dissolve, liquidate, or sell or transfer all or any
part of its business or assets, and in any such transaction involving only cash consideration you shall be deemed to have elected
to receive cash pursuant to Section 3(c)(ii) if so provided in the agreement providing for such transaction.

		4.	Exercise of Warrant.

(a)   
In order to exercise this Warrant with respect to all or any part of the Warrant Shares for which this Warrant is exercisable,
you (or any other person or persons exercising the Warrant in accordance with the terms hereof) must take the following actions:

(i)     
Execute and deliver to the Corporation an Exercise Notice for the Warrant Shares for which the Warrant is exercised (the
“Purchased Shares”) which Exercise Notice (1) states the number of Purchased Shares (which must be a
whole number of shares) and (2) is signed or otherwise given by you (or any other authorized person exercising the Warrant).

(ii)     
Pay the aggregate Exercise Price for the Purchased Shares, at the time of delivery of the Exercise Notice, (1) in cash or
an equivalent means acceptable to the Corporation, or (2) with shares of Common Stock owned by you (including shares received upon
exercise of the Warrant or restricted shares, if any, already held by you) and having a Fair Market Value at least equal to the
aggregate Exercise Price for the shares of Common Stock to which the Warrant is being exercised, or (3) by any combination of clauses
(1) and (2), or (4) by net issue exercise, pursuant to which the Corporation will issue to you a number of shares of Common Stock
as to which the Warrant is exercised, less a number of shares with a Fair Market Value as of the date of exercise equal to the
Exercise Price.  The number of shares to settle the transaction shall be the gross number of shares (subject to the transaction,
e.g., 1,250,000 in the case of a full exercise), multiplied by the Exercise Price, and divided by the SA (as defined below). If
shares of Common Stock are used for payment of all or any portion of the Exercise Price, then (for purposes of payment of the Exercise
Price) those shares of Common Stock shall be deemed to have a cash value equal to their aggregate Fair Market Value determined
as of the date of the delivery of the Exercise Notice, giving effect to all purchases of Warrant Shares.

    	 	7	 

    	 

    

(iii)     
Certify in a writing reasonably acceptable to the Corporation that you have complied with the provisions of Section 6 hereof
at all times since the Date of Grant and, if the Warrant is exercised in respect of fewer than the total Warrant Shares to which
this Warrant then relates, that you will continue to comply with such covenants in respect of the Warrant Shares which remain subject
to this Warrant.

(b)  
Notwithstanding any other provision hereof, the number of shares of Common Stock that you shall receive upon a full or partial
exercise of the Warrant shall be adjusted upward or downward, as the case may be, based upon the following formula:

QA = (SA – K) x Q / ST

 

Where:

 

		·	QA is the adjusted number of shares of Common Stock to be received, rounded to the nearest whole
number.

 

		·	SA is the average daily volume weighted average price for the Common Stock on the trading market
on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. over the 22 most recent days of trading on a stock
exchange, if so traded, ending on the last trading day prior to the date of the Corporation’s receipt of a Notice of Exercise
(the “Exercise Date”). If the Warrant Shares are not traded on a national securities exchange on the Exercise Date,
then the value of such Warrant Shares for the purposes of this Section 4(b) shall be deemed to be the Fair Market Value.

 

		·	K is the Exercise Price.

 

		·	Q is the unadjusted number of shares of Common Stock.

 

		·	ST is the Fair Market Value of the Warrant Shares on the last trading day prior to the Exercise
Date.

 

For purposes of clarity, if QA calculated as
above results in a negative number, it shall be set to zero.

 

For example, if you held a warrant to purchase
100 Warrant Shares with an exercise price of $5, the Fair Market Value of the Warrant Shares on the Exercise Date was $10, and
the average trading price over the last 22 trading days was $11, then you would receive $600 worth of Common Stock or 60 shares
of Common Stock; conversely, if the average trading price over the last 22 trading days was $9, you would receive $400 worth of
Common Stock or 40 shares of Common Stock.

 

As soon as practicable after the Exercise Date,
the Corporation shall issue the Warrant Shares to or on behalf of the Warrant holder (or any other person or persons exercising
this Warrant in accordance with the terms hereof).  The Warrant Shares shall be issued in book entry form.

    	 	8	 

    	 

    

 

(c)   
In no event may this Warrant be exercised for any fractional shares.  Fractional shares shall be satisfied in cash.

The Warrant shall not be deemed to have
been exercised unless all of these requirements are satisfied.

5.     
Adjustment Provisions.  The number of shares of Common Stock that may be acquired under the Warrant,
shall be subject to adjustment, from time to time, in accordance with the following provisions:

(a)   
If at any time or from time to time, the Corporation shall subdivide as a whole (by reclassification, by a stock split,
by the issuance of a distribution on stock payable in stock or otherwise, including a dividend designated as such by the Compensation
Committee of the Board of Directors) the number of shares of Common Stock then outstanding into a greater number of shares of Common
Stock, then (a) the number of shares of Common Stock that may be acquired under the Warrant shall be increased proportionately
and (b) the Exercise Price for each share of Common Stock subject to the Warrant shall be reduced proportionately, without changing
the aggregate purchase price or value as to which the Warrant remains exercisable.

(b)  
If at any time or from time to time, the Corporation shall consolidate as a whole (by reclassification, reverse stock split,
or otherwise) the number of shares of Common Stock then outstanding into a lesser number of shares of Common Stock, then (a) the
number of shares of Common Stock that may be acquired under the Warrant shall be decreased proportionately, and (b) the Exercise
Price for each share of Common Stock subject to the Warrant shall be increased proportionately, without changing the aggregate
purchase price or value as to which the Warrant remains exercisable.

(c)   
Should any other change be made to the Common Stock by reason of any exchange of shares or other change affecting the outstanding
Common Stock as a class without the Corporation’s receipt of consideration, appropriate adjustments shall be made to the
class of securities subject to this Warrant in such manner and to the extent deemed appropriate by the Board of Directors or the
Compensation Committee of the Board of Directors.

(d)  
Whenever the number of shares of Common Stock subject to the Warrant is required to be adjusted as provided in this Section
5, the Corporation shall, within 30 days following such adjustment, prepare and give to you a written notice setting forth, in
reasonable detail, the event requiring adjustment, the amount of the adjustment, the method by which such adjustment was calculated,
and the change in price and the number of shares of Common Stock, other securities, cash or property purchasable subject to the
Warrant after giving effect to the adjustment.

(e)   
Adjustments under Section 5(a), (b) and (c) shall be made by the Board of Directors or the Compensation Committee of the
Board of Directors and shall be subject to Section 26, and its determination as to what adjustments shall be made and the extent
thereof shall be final, binding and conclusive.  No fractional interest shall be issued on account of any such adjustments.

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6.     
Transferability.  This Warrant may be assigned in whole or in part during your lifetime either as (a)
a gift to one or more members of your Immediate Family or to a trust in which you and/or one or more such family members hold more
than 50% of the beneficial interest or (b) pursuant to a domestic relations order.  The assigned portion shall be exercisable
only by the person or persons who acquire a proprietary interest in the Warrant pursuant to such assignment.  The terms applicable
to the assigned portion shall be the same as those in effect for this Warrant immediately prior to such assignment and shall be
set forth in such documents issued to the assignee as the Board of Directors may deem appropriate. Except for assignments to a
person or an entity expressly permitted pursuant to the first sentence of this Section 6 above (a “Permitted Transferee”),
the Warrant may not be assigned, transferred, pledged, or otherwise hypothecated by you or any Permitted Transferee.  Additionally,
you or any Permitted Transferee may not hedge or enter into any derivative or other transaction in respect of the Warrant Shares
(the intention of the parties being that you, together with any Permitted Transferee, shall maintain a net long position in respect
of the Warrant Shares).  You shall (i) cause any Permitted Transferee to comply with the covenants herein and (ii) upon the
written request of the Corporation certify as to your compliance with the covenants herein from time to time.  Notwithstanding
anything to the contrary herein, the covenants and limits on transferability in this Section 6 shall terminate on the earliest
of (x) September 25, 2023, (y) your termination of employment by the Corporation without Cause, or a termination by you for Good
Reason, or (z) a Change in Control.

7.     
Delivery of the Stock.  After the exercise of the Warrant the Corporation shall promptly issue and deliver
the number of shares of Common Stock as to which the Warrant has been exercised after the Corporation receives (a) the Exercise
Notice, (b) payment of the Exercise Price, and (c) any tax withholding as may be requested.  The value of the shares of Common
Stock shall not bear any interest owing to the passage of time.  The shares of Common Stock shall be issued in book entry
form.

8.     
Rights as a Stockholder.  You shall have no right as a stockholder with respect to any shares covered
by this Warrant unless and until the shares are issued in your name.

9.     
Rights Offerings.  In case the Company shall fix a record date for the making of a distribution to all
holders of shares of its Common Stock of securities, evidences of indebtedness, assets, cash, rights or warrants (excluding Ordinary
Cash Dividends, dividends of its Common Stock and other dividends or distributions referred to in Section 5), in each such case,
the Exercise Price in effect prior to such record date shall be reduced immediately thereafter or at such later date as the Board
of Directors may determine for purposes of the determination of Fair Market Value (but in any event not later than 10 business
days after the first date on which the Common Stock trades regular way on the principal national securities exchange on which the
Common Stock is listed or admitted to trading without the right to receive such distribution) to the price determined by multiplying
the Exercise Price in effect immediately prior to the reduction by the quotient of (x) the Market Price of the Common Stock on
the last trading day preceding the first date on which the Common Stock trades regular way on the principal national securities
exchange on which the Common Stock is listed or admitted to trading without the right to receive such distribution, minus the amount
of cash and/or the Fair Market Value of the

    	 	10	 

    	 

    

 

securities, evidences of indebtedness,
assets, rights or warrants to be so distributed in respect of one share of Common Stock divided by (y) such Market Price on such
date specified in clause (x); such adjustment shall be made successively whenever such a record date is fixed. In such event, the
Warrant Shares shall be increased to the number obtained by multiplying the Warrant Shares immediately prior to such adjustment
by the quotient of (x) the Exercise Price in effect immediately prior to the distribution giving rise to this adjustment divided
by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. In the event that such distribution
is not so made, the Exercise Price and the Warrant Shares then in effect shall be readjusted, effective as of the date when the
Board of Directors determines not to distribute such shares, evidences of indebtedness, assets, rights, cash or warrants, as the
case may be, to the Exercise Price and the Warrant Shares that would then be in effect if such record date had not been fixed.

10. 
Tender or Exchange Offers.  Subject to Section 26, if the Corporation or any subsidiary of the Corporation
shall consummate a tender or exchange offer for all or any portion of the Common Stock for a consideration per share with a Fair
Market Value greater than the Fair Market Value of the Common Stock on the date such tender or exchange offer is first publicly
announced (the “Announcement Date”), the Exercise Price in effect immediately prior to the expiration
date for such tender or exchange offer shall be reduced immediately thereafter to the price determined by multiplying such Exercise
Price by the quotient of (x) the Fair Market Value of the Common Stock on the Announcement Date minus the Premium Per Post-Tender
Share divided by (y) the Fair Market Value of the Common Stock on the Announcement Date.  In such event, the number of shares
of Common Stock issuable upon the exercise of the Warrant as in effect immediately prior to such expiration date shall be increased
immediately thereafter to the amount determined by multiplying such number by the quotient of (x) the Exercise Price in effect
immediately prior to the adjustment contemplated by the immediately preceding sentence divided by (y) the new Exercise Price determined
in accordance with the immediately preceding sentence.  As used in this Section 10 with respect to any tender or exchange
offer, “Premium Per Post-Tender Share” means the quotient of (x) the amount by which the aggregate Fair
Market Value of the consideration paid in such tender or exchange offer exceeds the aggregate Fair Market Value on the Announcement
Date of the shares of Common Stock purchased therein divided by (y) the number of shares of Common Stock outstanding at the close
of business on the expiration date for such tender or exchange offer (after giving pro forma effect to the purchase of shares being
purchased in the tender or exchange offer).

11. 
Furnish Information.  You shall furnish to the Corporation all information requested by the Corporation
to enable it to comply with any reporting or other requirement imposed upon the Corporation by or under any applicable statute
or regulation.

12. 
Registration and Listing of Warrant Shares.  At your request, the Corporation shall file a registration
statement with the Securities and Exchange Commission to register the sale of Warrant Shares as soon as reasonably practicable
after such request.  The Corporation will include the Warrant Shares in any listing application for listing on Nasdaq. 
If the Corporation is unable to deliver registered Warrant Shares for any reason, then, in this instance, the Corporation shall
(i) issue unregistered Warrant Shares to you and (ii) use it best efforts to register the Warrant Shares as soon as possible after
receipt of your request for registration.

    	 	11	 

    	 

    

13. 
Obligation to Exercise.  The purchase of the Warrant through this Warrant shall impose no obligation
upon you to exercise the same or any part thereof.

14. 
Remedies.  You shall be entitled to recover from the Corporation reasonable fees incurred in connection
with the enforcement of the terms and provisions of this Warrant, whether by an action to enforce specific performance or for damages
for its breach or otherwise.

15. 
Right of the Corporation and Subsidiaries to Terminate Employment.  Nothing contained in this Warrant
shall confer upon you the right to continue in the employ of the Corporation or any subsidiary, or interfere in any way with the
rights of the Corporation or any subsidiary to terminate your employment at any time.

16. 
Exchange Act Compliance.  The Board of Directors shall take all steps necessary to ensure that the purchase
and exercise of the Warrant are exempt from Section 16(b) of the Exchange Act.

17. 
No Guarantee of Interests.  The Board of Directors and the Corporation do not guarantee the Common Stock
of the Corporation from loss or depreciation.

18. 
Corporation Action.  Any action required of the Corporation shall be by resolution of its Board of Directors
or by a person or committee authorized to act by resolution of the Board of Directors.

19. 
Severability.  If any provision of this Warrant is for any reason held to be illegal, invalid, or to
violate any law or listing requirement applicable to the Corporation, the illegality, invalidity, or violation shall not affect
the remaining provisions hereof, but such provision shall be fully severable and this Warrant shall be construed and enforced as
if the illegal or invalid provision had never been included herein and you and the Corporation shall amend this Warrant, preserving,
to the maximum extent reasonably possible, the intended economic effects of this Warrant as executed by the parties hereto.

20. 
Notices.  Whenever any notice is required or permitted hereunder, such notice must be in writing and
personally delivered or sent by electronic facsimile transmission.  Any such notice required or permitted to be delivered
hereunder shall be deemed to be delivered on the next Business Day after which it is personally delivered or transmitted by electronic
facsimile to the person who is to receive it at the address which such person has theretofore specified by written notice delivered
in accordance herewith.

The Corporation and you
agree that any notices shall be given to the Corporation or to you at the following addresses; provided that the Corporation or
you may change, at any time and from time to time, by written notice to the other, the address which it or he had previously specified
for receiving notices.

 

	Corporation:	
        Edgar Express, Inc.

        333 Avenue of the Americas, Suite 2000

        Miami, Florida 33131-2185

        Attention: Chief Executive Officer and Chief
        Operating Officer

  

    	 	12	 

    	 

    

	Holder:	
        At your current address as shown in the Corporation’s
        records.

         

21. 
Waiver of Notice.  Any person entitled to notice hereunder may waive such notice.

22. 
Successors.  This Warrant shall be binding upon you, your legal representatives, heirs, legatees and
distributees, and upon the Corporation, its successors and assigns.

23. 
Headings.  The titles and headings of Sections are included for convenience of reference only and are
not to be considered in construction of the provisions hereof.

24. 
Governing Law.  All questions arising with respect to the provisions of this Warrant shall be determined
by application of the laws of the State of Delaware except to the extent Delaware law is preempted by federal law.

25. 
Word Usage.  Words used in the masculine shall apply to the feminine where applicable, and wherever the
context of this Warrant dictates, the plural shall be read as the singular and the singular as the plural.

26. 
Code Sections 162(m) and 409A.  It is the intent of the Corporation that:  (a) the Warrant shall
constitute “qualified performance-based compensation” within the meaning of Section 162(m) of the Code and regulations
thereunder (“Code Section 162(m)”) and shall be at all times exempt from Code Section 409A; (b) each
provision of this Warrant shall be construed accordingly; and (c) any provisions of this Warrant that cannot be so construed shall
be disregarded.  In furtherance thereof, notwithstanding any contrary provision of Sections 3, 5, 9 and 10, any adjustment
to the terms of this Warrant, including an adjustment to the number of shares subject to the Warrant or the Exercise Price, shall
be permissible only to the extent such adjustment would not cause the Warrant to fail to constitute “qualified performance
based compensation” under Code Section 162(m) or to fail to remain exempt from Code Section 409A.

 

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    	 	13	 

    	 

    

 

IN WITNESS WHEREOF,
the Corporation has caused this Warrant to be executed by its duly authorized officer as of the Date of Grant first above written.

 

	 	 	EDGAR EXPRESS, INC.
	 	 	 	 
	 	 	 	 
	 	 	By:	 
	 	 	 	Mary Foster
	 	 	 	Chief Executive Officer
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	14Exhibit

EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT (this “Agreement”) made as of October 15, 2018, by and between the Federal Agricultural Mortgage Corporation, a federally-chartered instrumentality of the United States with its principal place of business at 1999 K Street, N.W., Washington, D.C. (“Farmer Mac”) and Bradford T. Nordholm (the “Executive”).
WHEREAS, the Executive desires to be employed by Farmer Mac and Farmer Mac desires to employ him; and
WHEREAS, Farmer Mac and the Executive have negotiated terms for such employment;
NOW, THEREFORE, by this Agreement, Farmer Mac and the Executive agree as follows:
1.Employment.  Farmer Mac shall employ the Executive, and the Executive accepts employment Farmer Mac pursuant to this Agreement, as of the date first above written (the “Effective Date”) upon the terms and conditions set forth in this Agreement.
2.    Term.  The Executive’s employment under this Agreement shall commence on the Effective Date and shall continue until March 31, 2021, unless sooner terminated pursuant to Section 8 hereof (the “Initial Term”).  After the expiration of the Initial Term, the term of this Agreement may renew for successive one-year periods upon a vote of the Board of Directors of Farmer Mac (the “Board”) to effect such a renewal (each a “Renewal Term”)(the Initial Term and any Renewal Terms being referred to collectively as the “Term” of the Agreement); provided, however, that the Agreement shall not renew at the end of the Initial Term or any Renewal Term unless the Board affirmatively votes to renew the Agreement and the Executive agrees in writing to any such renewed Agreement. 
3.    Scope of Authority and Employment.
(a)    Scope of Authority.  The Executive shall be employed as an executive officer of Farmer Mac, with the title of President and Chief Executive Officer.  The Executive shall report directly to the Board.  The Executive shall be the senior-most officer of Farmer Mac and shall have responsibility for the general supervision and management of all the business and affairs of Farmer Mac, as set forth in the By-Laws of Farmer Mac, subject to the oversight of the Board. The Board anticipates performing regular performance reviews of the Executive on at least an annual basis.  
(b)    Full Time Employment.  The Executive shall devote his best efforts and substantially all his business time and business endeavors to his duties hereunder, and shall not engage in any other gainful occupation without the prior written consent of the Board; provided, however, that this provision shall not be construed to prevent the Executive from personally, and for his own account or that of members of his immediate family, investing or trading in real estate, stocks, bonds, securities, commodities, or other forms of investment, so long as such investing or trading is not in conflict with the best 

interests of Farmer Mac and does not adversely affect his job performance.  Farmer Mac hereby consents to the Executive serving as a member of the board of directors of Starwood Sustainable Credit and/or the board of directors of any of its portfolio companies that does not compete with Farmer Mac for no more than three years from the Effective Date; provided, however, that the Board does not determine at any time that such role interferes with the Executive’s job duties at Farmer Mac or that such role presents a conflict of interest to serving as an employee or officer of Farmer Mac, which determination the Board may make at any time in its sole discretion; provided that, the Executive shall be given a period of at least thirty (30) days (the length of the period to be decided by Farmer Mac) to resign from his role as a member of the board of directors of Starwood Sustainable Credit and its portfolio company unless the Board determines that the Executive’s position on the board of directors creates a conflict of interest, regulatory or legal compliance issue or other exposure to legal or regulatory risk that must be cured or corrected in less than thirty (30) days, in which case the Board may require the Executive to resign in less than thirty (30) days.  Farmer Mac represents that it is not, as of the date of executing this Agreement, aware of any conflict of interest between Executive’s serving on such boards of directors and Executive’s position with Farmer Mac under this Agreement, though this representation shall not limit the Board’s right or ability to determine at a later time that a conflict of interest exists.
(c)    Place of Employment.  The Executive shall be employed to perform his duties under this Agreement at the principal office location of Farmer Mac, which currently is in Washington, D.C.  Notwithstanding this, it is expected that the Executive shall be required to travel a reasonable amount of time in the performance of his duties under this Agreement.
4.    Compensation.  Farmer Mac will pay to the Executive the following aggregate compensation for all services rendered by the Executive under this Agreement:
(a)    Base Salary.  The Executive will be paid a base salary during the Term at an annual rate of seven hundred fifty thousand dollars ($750,000), less applicable withholding for taxes and similar items, (the “Base Salary”) payable in arrears through Farmer Mac’s regular payroll process, which is currently processed on a bi‐weekly basis.  The Base Salary will be reviewed periodically by Farmer Mac and may be increased in the sole discretion of the Board or the Compensation Committee of the Board, although no increase in the Base Salary shall be required during the Initial Term.
(b)    Annual Cash Incentive Compensation.  In addition to the Base Salary, the Executive will be eligible to be paid an additional amount (the “Incentive Salary”) during the Term for work performed by the Executive during the preceding calendar year, or portion thereof.  The initial Incentive Salary target (the “Incentive Salary Target”) shall be eighty percent (80%) of the Base Salary, provided, however, that for calendar year 2018 only, the Incentive Salary Target shall be prorated to reflect the actual number of days that Executive was employed by Farmer Mac during 2018.  The Incentive Salary Target will be reviewed periodically by Farmer Mac and may be modified in the sole 

2

discretion of the Board or the Compensation Committee of the Board.  The Executive shall be covered by the Incentive Salary arrangement for such calendar year applicable to senior executives of Farmer Mac generally, with any Incentive Salary determined under this sentence payable when annual incentives are paid to Farmer Mac executives generally for such calendar year and subject to the Executive’s continued employment through the applicable date of payment and subject to any compensation recoupment or “clawback” policy as may implemented and interpreted by Farmer Mac from time to time; provided, however, that in no event shall the Incentive Salary be paid later than the first payroll period following the first Board meeting after Farmer Mac files its Annual Report on Form 10-K with the U.S. Securities and Exchange Commission for the year in which the Incentive Salary was earned.  The Executive’s Incentive Salary for any year will be determined based on Farmer Mac’s actual performance in relation to threshold, target, and maximum amounts for various metrics specified by the Compensation Committee of the Board, so it may be paid below, at, or above the Incentive Salary Target.
(c)    Long-Term Incentive Compensation.  In addition to the foregoing, the Executive shall be eligible to receive awards of long-term incentive compensation from time to time during the Initial Term and any Renewal Terms.  The Executive shall be covered by the long-term incentive compensation arrangements applicable to senior executives of Farmer Mac generally, and shall receive awards in a form, and subject to such conditions, as determined by the Board or the Compensation Committee in its sole discretion.  On the Effective Date, Farmer Mac shall grant to the Executive time-vested restricted stock units in Farmer Mac’s Class C non-voting common stock valued at approximately two hundred fifty thousand dollars ($250,000) based upon fair market value as of the date of grant as determined by the methodology used in Farmer Mac’s financial statements.  Those restricted stock units shall all “cliff” vest on March 31, 2021 if the Executive is still employed (including during any notice period or paid administrative leave period) by Farmer Mac on that date.  In addition, in approximately March 2019, at the time that long-term incentive awards are made to other senior executives, Farmer Mac shall grant to the Executive long-term equity incentive compensation valued at approximately seven hundred thousand dollars ($700,000) (the “LTI Annual Target”) under the methodology prescribed in Farmer Mac’s Equity Compensation Grant Policy and subject to the similar terms and conditions as apply to similar 2019 annual long-term incentive grants made to other senior executives.  The LTI Annual Target will be reviewed periodically by Farmer Mac and may be modified in the sole discretion of the Board or the Compensation Committee of the Board.
5.    Expenses.  Farmer Mac shall reimburse the Executive for his actual reasonable and necessary business expenses incurred in carrying out his duties under this Agreement, in each case in accordance with Farmer Mac’s policies as in effect from time-to-time and subject to the Executive’s compliance with the terms of such policies.  Reimbursement shall be made to the Executive in accordance with Farmer Mac’s standard expense reimbursement protocol after presentation to Farmer Mac of an itemized accounting and documentation of such expenses in accordance with Farmer Mac’s expense reimbursement policies.  

3

The Executive shall relocate to the Washington, D.C. metropolitan area by the Effective Date.  Farmer Mac will reimburse the Executive for reasonable receipted out-of-pocket relocation expenses up to fifty thousand dollars ($50,000), including the cost of two (2) house hunting trips (including Executive’s spouse) to the Washington, D.C. metropolitan area, moving household goods and personal property, and temporary housing at an extended stay hotel/apartment from the Effective Date through January 15, 2019.
6.    Vacation.  The Executive shall be entitled to five (5) weeks of paid vacation per year in accordance with Farmer Mac’s annual leave policy.
7.    Employee Benefits.   During the Term, the Executive shall be eligible to participate in the welfare benefit plans and programs, incentive, savings, and retirement compensation programs, and other employee benefits, including paid parking in the parking garage associated with Farmer Mac’s headquarters building, generally available to other senior executives of Farmer Mac and on terms no less favorable than for other senior executives.  
8.    Termination.
(a)    Events of Termination.  The Executive’s employment may be terminated and the employment relationship between the Executive and Farmer Mac may be severed as set forth below:
(i)    Farmer Mac may terminate the employment of the Executive effective upon notice to the Executive if the Executive dies or is incapacitated or disabled by accident, sickness or otherwise so as to render him (in the opinion of an independent medical consultant selected by the Board in its reasonable discretion) mentally or physically incapable of performing the essential functions required to be performed by him under the terms of this Agreement for a period of at least ninety (90) consecutive days, or for ninety (90) days (whether consecutive or not) during any six-month period.
(ii)    Farmer Mac may terminate the employment of Executive effective upon notice to the Executive at any time for “cause.”  For the purposes of this subsection, “cause” shall mean only:  (A) the Executive’s breach of an  obligation or  representation under this Agreement or of any fiduciary duty to Farmer Mac, including, without limitation, any act of fraud or misrepresentation or concealment to Farmer Mac or the Board; (B) the Executive’s violation of or  failure to adhere to any Code of Conduct in effect from time to time that is applicable to officers and/or employees of Farmer Mac generally or any written policy of Farmer Mac in effect from time to time if not remedied within five (5) business days after Farmer Mac’s providing notice thereof (except that with respect to violation of any policy relating to equal employment opportunity, discrimination, or harassment, or any violation involving dishonesty, the Executive shall not be entitled to notice or the opportunity to cure); (C) the Executive commits, is convicted of, or pleads guilty or nolo contendere to, any felony of any kind or any misdemeanor or other conduct involving moral 

4

turpitude; (D) the Executive’s violation of, or failure to abide by, any law or regulation relating to his employment with Farmer Mac (including, without limitation and for the avoidance of doubt, any insider trading law) or otherwise applicable to him in his capacity as an employee or officer of Farmer Mac; (E) conduct by the Executive in connection with his employment hereunder that constitutes dishonesty or misconduct; (F)  neglect of Executive’s duties, including, without limitation, the duty to supervise, if not remedied within five (5) business days after Farmer Mac’s providing notice thereof; (G) the Executive’s use of illegal drugs, abuse of other controlled substances, or working under the influence of alcohol or other controlled substances (except as may be authorized by a prescription from a physician); (H) any failure or refusal by the Executive to perform his duties under this Agreement if not remedied within five (5) business days after Farmer Mac’s providing notice thereof; or (I) any failure or refusal by the Executive to obey lawful directives from the Board or its authorized designee if not remedied within five (5) business days after Farmer Mac’s providing notice thereof.  For each sub-part of this “cause” definition in which the Executive is provided the right to notice and the opportunity to cure, the determination as to whether an act, omission, or violation is curable, and the determination as to whether it has been cured, shall be determined by the Board in its good faith judgment.  In no event shall the Executive have the right to notice or opportunity to cure more than once for violation of any sub-part of this “cause” definition.  After the Executive has been provided notice of, and effected cure of, a violation of any sub-part of this “cause” definition, Farmer Mac shall have the right to terminate the Executive’s employment for “cause” for any subsequent violation of that sub-part.  Any resignation by the Executive that occurs after any notice provided under this subsection, or after the Executive has committed an act or omission that constitutes “cause” hereunder, and before the Board has determined whether an act, omission, or violation is curable or has been cured shall be treated as a termination of this Agreement for “cause.” 
In addition, the Board may place the Executive on administrative leave at any time.  In such event, during the period the Executive is on administrative leave, the Executive shall continue to receive the payments and benefits specified in Sections 4 through 7 hereof.
(iii)    Subject to the terms and conditions of this Agreement, including Section 8(d), Farmer Mac may terminate the employment of the Executive without “cause” at any time.  For the avoidance of doubt, termination of the Executive’s employment for any reason upon the expiration of the Term shall not be treated as a termination without “cause” for purposes of this Agreement.
(iv)    Notwithstanding the provisions of Section 8(a)(iii) above, and without incurring liability for any payments pursuant to Section 8(d) below, Farmer Mac may terminate the employment of the Executive at any time after the passage by the Board of a resolution authorizing the liquidation of Farmer Mac, 

5

provided, however, that the following shall not be deemed to be a liquidation for purposes of this Agreement:  incorporation, organization or reorganization of a corporation or other business entity which is substantially similar to Farmer Mac and which uses substantially the same assets or equity as Farmer Mac.  As used herein, the term “reorganization” shall have the same meaning as in Section 368(a) of the Internal Revenue Code (“the Code”).  In addition, notwithstanding the provisions of subsection 8(a)(iii) above, and without incurring liability for any payments pursuant to Section 8(d) below, Farmer Mac may terminate the employment of the Executive at any time after a conservator or receiver is appointed pursuant to Section 8.41 of Farmer Mac’s charter (12 U.S.C. § 2279cc)
(b)    Payment of Accrued Compensation.
(i)    Upon termination of the Executive’s employment pursuant to preceding subsection (a) or upon termination of the Executive’s employment upon expiration of the Term, the Executive (or his estate or heirs, as the case may be) shall be entitled to receive all Base Salary, expense reimbursements, vacation pay (up to the limit for the payment of accrued vacation pay set forth from time to time in Farmer Mac’s employment-related policies, which is currently four (4) weeks), and similar amounts accrued and unpaid as of the date of termination.  For the avoidance of doubt, these accrued and unpaid amounts shall not include any accrued Incentive Salary.  These accrued and unpaid amounts shall be in addition to any amounts that may be due under subsection (c), (d), or (e) of this Section 8.  The obligations of Farmer Mac under this subsection (b) shall survive any termination of this Agreement.
(ii)    In the event of the Executive’s voluntary termination of employment hereunder (other than pursuant to Section 8(e) below), Farmer Mac shall not be obligated to make any further compensation payments to Executive beyond those accrued prior to the effective date of such termination, and shall not be required to pay any accrued Incentive Salary.
(c)    Disability Pay.  Upon termination of the Executive’s employment pursuant to subsection 8(a)(i), Farmer Mac shall, if Executive (or, if applicable, his executor or authorized legal representative) executes and does not revoke a separation agreement, including a full release of claims in favor of Farmer Mac and its affiliates, in form and substance acceptable to Farmer Mac within thirty (30) days (or such longer period as required for a valid release under applicable law) following such termination, continue to pay the Executive (or his estate or heirs, as the case may be) for the shorter of (i) twelve (12) months or (ii) the period ending when Executive ceases to receive or be eligible for disability insurance payments, the difference between the Executive’s current Base Salary and the amount of disability insurance payments received by the Executive under insurance policies provided by Farmer Mac in accordance with this Agreement.
(d)    Severance Pay.  Upon termination of the Executive’s employment pursuant to Section 8(a)(iii) during the Initial Term or any Renewal Term, subject to the 

6

Executive’s execution of a separation agreement, including a full release of claims in favor of Farmer Mac and its affiliates, in form and substance acceptable to Farmer Mac within thirty (30) days (or such longer period as required for a valid release under applicable law) following such termination and the Executive not revoking such release, Farmer Mac shall, to the extent permitted by law and regulation, pay the Executive in the next payroll period following the expiration of the revocation period under the release but no later than sixty (60) days following the date on which the Executive experiences a “separation from service” as defined in Section 409A of the Code, an aggregate lump sum amount in cash equal to the sum of (a) the Base Salary and (b) the Base Salary multiplied by the Incentive Salary Target; provided, however, that if the period during which the Executive has discretion to execute or revoke the general release of claims straddles two calendar years, then Farmer Mac will make the severance payment in the second of such years, regardless of which year the Executive actually delivers the executed general release of claims to Farmer Mac, subject to the release agreement first becoming effective. The Executive may not, directly or indirectly, designate the calendar year of payment.  The amount to be paid by Farmer Mac to the Executive under this Section 8(d) will not be mitigated by any subsequent earnings by the Executive from any other source.  In addition, subject to the contingencies described above, to the extent that Executive makes proper and timely coverage continuation elections pursuant to the Consolidated Omnibus Reconciliation Act of 1985, as amended (“COBRA”), and remains eligible for such coverage, Farmer Mac will pay or reimburse Executive for COBRA medical, dental and vision insurance continuation premiums for the Farmer Mac group medical, dental and vision insurance coverage that Executive had as of the date of termination until the earlier of (i) the date that is one (1) year from the date of termination of employment or (ii) the date that he becomes eligible for medical insurance coverage through another employer (but only to the extent that Farmer Mac continues to offer such plans and programs to similarly situated active employees of Farmer Mac).  In addition, during the same time period, Farmer Mac shall permit Executive to continue to participate in all Farmer Mac-sponsored life, accidental death and disability insurance benefit plans or programs in which Executive was participating at the time of termination, to the extent such post-termination participation is permitted by the terms of such plans and programs and applicable law, at Farmer Mac’s cost (but only to the extent that Farmer Mac continues to offer such plans and programs to similarly situated active employees of Farmer Mac).  If this commitment to provide benefits continuation raises any compliance issues or impositions of penalties under any non-discrimination rules that have been issued or are issued in the future pursuant to the Patient Protection and Affordable Care Act (PPACA) or is treated as discriminatory under Section 105(h) of the Code, Farmer Mac may modify this obligation in any manner it deems necessary or advisable, in its sole discretion, including declining to provide continued participation, so that it complies with the terms of those non-discrimination rules; provided, however, that, if Farmer Mac is unable to provide any of these aforementioned benefits then it shall provide the Executive with a cash payment equivalent to the cost for the Executive to obtain coverage substantially similar to that benefit plan up to, but not exceeding the amount paid in premiums for the Executive’s coverage under that benefit plan during the year prior to the date of termination of the Executive’s employment.  The amount to be 

7

paid by Farmer Mac to the Executive under this Section 8(d) is in lieu of any and all other severance payments otherwise available to the Executive and Executive shall not be entitled to any severance payments under any other Farmer Mac contract, policy or plan.  Farmer Mac may withhold taxes and other required contributions from any amount payable pursuant to this Section 8(d). If the Executive is found by any tribunal to be entitled to severance payments from any other source in connection with his employment with Farmer Mac, the amount of such severance payments shall be subtracted from the amount due under this Section 8(d) and the Executive shall refund to Farmer Mac any excess already received by him.  The severance payments payable hereunder, shall not be reduced by compensation earned in exchange for work from any other source.  For the avoidance of doubt, the Executive shall not be entitled to severance pay under this Section 8(d) due to expiration of the Term or due to the termination of the Executive’s employment upon the expiration of the Term.
(e)    Constructive Termination.  The Executive may, at his option, terminate his employment with Farmer Mac during the Initial Term or any Renewal Term if Farmer Mac materially breaches any of its obligations set forth under this Agreement, the Executive so notifies Farmer Mac of such breach and his intent to resign in writing within thirty (30) days after Executive becomes aware of such breach, and Farmer Mac does not remedy such breach within thirty (30) days after receiving such notice.  If the Executive resigns immediately following Farmer Mac’s failure to remedy such a breach, the Executive shall, subject to the Executive’s execution of a separation agreement, including a full release of claims in favor of Farmer Mac and its affiliates, in form and substance acceptable to Farmer Mac within thirty (30) days (or such longer period as required for a valid release under applicable law) following such termination and the Executive not revoking such release, and subject to the terms of Section 8(d) above, have the right to receive the amount he would have received if Farmer Mac had terminated his employment pursuant to the preceding subsection 8(a)(iii); provided, however, that if an arbitrator or other third-party decision maker responsible for deciding any dispute over payment of severance determines that Farmer Mac could have terminated the Executive’s employment for “cause,” the Executive shall have no right to receive any amounts described in Section 8(d) and failure to make any such payment shall not be deemed to be a breach of this Agreement by Farmer Mac. 
9.    Notices.  Any notice given under this Agreement will be sufficient if in writing and either:  (a) mailed postage prepaid by registered or certified mail, return receipt requested; or (b) delivered by hand to, in the case of Farmer Mac, 1999 K Street, N.W., Washington, D.C. 20006, attention General Counsel or, in the case of the Executive, at his address identified in the payroll records of Farmer Mac (or to such other addresses as may be from time to time designated by notice from the recipient party to the other) with a copy delivered to Daniel L. Schwartz, Day Pitney LLP, One Canterbury Green,  Stamford, CT 06901.  Any such notice will be effective upon actual receipt or refusal thereof.

8

10.    Miscellaneous.
(a)    Governing Law.  This Agreement shall be governed by, interpreted and enforced in accordance with the laws of the District of Columbia.
(b)    Arbitration.  If any legally actionable dispute arises under this Agreement or otherwise which cannot be resolved by mutual discussion between the parties hereto, then Farmer Mac and the Executive each agree to resolve any and all such disputes by binding arbitration before a panel of three (3) arbitrators experienced in employment law.  Said arbitration will be conducted in accordance with the rules applicable to employment disputes of the Model Employment Rules of the American Arbitration Association (“AAA”) and the laws applicable to the claim.  The parties shall have thirty (30) calendar days after notice of such arbitration has been given to attempt to agree on the selection of a panel of three (3) arbitrators.  In the event the parties are unable to agree in such time, AAA will provide a list of twelve (12) available arbitrators and an arbitrator will be selected by each party from such twelve (12)-member panel provided by AAA.  The two (2) arbitrators selected by the parties shall, in turn, select by agreement a third arbitrator from the AAA list.  The arbitrators may permit reasonable discovery, including document requests, interrogatories and depositions, but in allowing discovery shall balance the policy favoring discovery against the policy of the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1 et seq., and the AAA Rules to facilitate cost-effective expeditious resolution of disputes.  The parties agree that this agreement to arbitrate includes any and all disputes that Farmer Mac may have against the Executive, or that the Executive may have against Farmer Mac and/or its affiliates and/or employees, arising out of or relating to this Agreement, the Executive’s employment or the Executive’s termination including, but not limited to, any claims of discrimination or harassment in violation of applicable law and any other aspect of the Executive’s compensation, employment or the Executive’s termination.  The parties further agree that arbitration as provided for in this Section 10(b) is the exclusive, final and binding remedy for any such dispute and will be used instead of any court or agency action or action before any other tribunal, which is hereby expressly waived, except for any request by either party for temporary or preliminary injunctive relief pending arbitration in accordance with applicable law or for breaches by the Executive of his obligations under Sections 11, 12, 13, or 14.  The Executive agrees that he will not join any class or other person in making a joint or class claim against Farmer Mac and he hereby waives any right to do so.  The parties agree that this Agreement is subject to the FAA and that this agreement to arbitrate shall be enforceable to the fullest extent allowed by the FAA.  All rulings shall require concurrence of the majority of the panel.  The final award shall be in writing with an explanation of the reasons for the award, signed by the arbitrators, and shall be rendered within 30 days of the completion of the hearing and promptly transmitted to the respective parties.  Such award shall be binding and conclusive upon all parties hereto subject only to grounds permitted under the FAA for vacating, correcting, or modifying an award.  The parties agree that (i) the arbitration provided for herein shall be conducted in the District of Columbia unless otherwise mutually agreed; (ii) each party shall bear the costs of its own attorneys and (iii) the parties shall share equally the cost of the arbitration.  In the event 

9

of any conflict between the AAA Rules and the requirements of the FAA or this Agreement, the requirements of the FAA and this Agreement shall prevail.  The parties agree that any final award or decision by the arbitral panel may be filed in the U.S. District Court for the District of Columbia for enforcement and that it may be enforced by such court.
(c)    Waiver.  The waiver by any party of a breach of any provision of this Agreement shall not operate as a waiver of any other breach of any provision of this Agreement by any party.
(d)    Entire Agreement.  This Agreement sets forth the entire understanding of the parties concerning the subject matter hereof and supersedes all prior agreements between the parties regarding the subject matter hereof, and may not be changed or modified except by a written instrument duly executed by or on behalf of the parties hereto.
(e)    Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective, successors, heirs, personal representatives and assigns.  This subsection is not to be construed to permit the Executive to assign his obligation to perform the duties of his employment hereunder.  This subsection permits Farmer Mac the right to assign this Agreement to a successor entity, provided that such successor entity succeeds to all or substantially all of the assets or business of Farmer Mac and expressly assumes in writing delivered to the Executive, all of Farmer Mac’s obligations under this Agreement.
(f)    Severability.  If any term, condition, or provision of this Agreement or the application thereof to any party or circumstances shall, at any time or to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such term, condition or provision to parties or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each term, condition and provision of their Agreement shall be valid and enforceable to the fullest extent permitted by law.
(g)    Tax Withholding.  All payments here under shall be subject to all applicable tax withholdings and other authorized deductions.
(h)    Survival.  The termination of the Executive’s employment by Farmer Mac for any reason shall not relieve the Executive of any obligations to Farmer Mac under Sections 11 through 15 of this Agreement, all of which shall survive the termination of such employment.
11.    Agreement Not to Compete with Farmer Mac.  Notwithstanding anything in this Agreement to the contrary, in the event of the termination of the Executive’s employment for any reason, for a period of two (2) years thereafter, the Executive shall not, within the United States of America, without the prior written consent of Farmer Mac, directly or indirectly, engage in any business or activity, whether as principal, agent, officer, director, partner, employee, 

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independent contractor, consultant, stockholder or otherwise, alone or in association with any other person, firm, corporation or other business organization, that  competes with  the business of Farmer Mac, including, without limitation, the acquisition and securitization of agricultural mortgage loans, rural utility loans, or USDA “guaranteed portions” (collectively hereinafter referred to as “Farmer Mac Qualified Loans”); provided, however, that such prohibited activity shall not include the ownership of up to 5% of the common stock in any public company. The provisions of this Section 11 shall survive the termination of this Agreement and the termination of the Executive’s employment hereunder and shall not be deemed to limit any protection or remedy available to Farmer Mac pursuant to federal, District of Columbia, state, or local law.
12.    Agreement Not to Use Confidential or Proprietary Information.  Farmer Mac and the Executive both recognize that the Executive has had and will have access to and may acquire, and may assist in developing, confidential and proprietary information relating to the business and operations of Farmer Mac as a result of the Executive’s employment or association with Farmer Mac.  The Executive hereby covenants and agrees that he will retain all “Confidential Information” (as defined below) in trust for the sole benefit of Farmer Mac and its successors and assigns.  The Executive hereby covenants further that, in addition to his fiduciary responsibilities as an officer not to disclose certain information of or relating to Farmer Mac, he will not, at any time during or after the term of this Agreement, without the prior written consent of Farmer Mac, directly or indirectly communicate or divulge any such Confidential Information to any person, firm, corporation or other business organization (other than the Executive’s attorneys for the purpose of obtaining legal advice), or use any such Confidential Information for the Executive’s own account or benefit or for the account or benefit of any other person, except as required in connection with the performance of his services hereunder.  The term “Confidential Information” shall mean any trade secret, data or other confidential or proprietary information related to the business and activities of Farmer Mac.  The Executive may, however, disclose or use any such information (i) as has become generally available to the public other than through a breach of this Agreement by the Executive or the Executive’s attorney; (ii) as becomes available to the Executive on a non-confidential basis from a source other than any other party hereto, provided that such source is not known or reasonably believed by the Executive to be bound by a confidentiality agreement or other obligations of secrecy; (iii) as may be required in any report, statement or testimony required to be submitted to any Governmental Entity (as defined below) having or claiming to have jurisdiction over it, or as may be otherwise required by applicable law, or as may be required in response to any summons or subpoena or in connection with any litigation, provided, however, that in the event such disclosure is required by law, the Executive shall provide Farmer Mac with prompt notice of such requirement so that Farmer Mac may seek an appropriate protective order prior to any such required disclosure by the Executive; (iv) to report possible violations of federal, state, or local law or regulation to any Governmental Entity, or from making other disclosures that are protected under the whistleblower provisions of federal, state, or local law or regulation, and the Executive shall not need the prior authorization of Farmer Mac to make any such reports or disclosures and shall not be required to notify Farmer Mac that he has made such reports or disclosures; (v) to disclose a trade secret (as defined by 18 U.S.C. § 1839) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, in either event solely for the purpose of reporting or investigating a suspected violation of law; (vi) to disclose a trade secret 

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(as defined by 18 U.S.C. § 1839) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; or (vii) as may be necessary to establish the Executive’s rights under this Agreement.  For the purposes of this Agreement, “Governmental Entity” means any government or agency, district, bureau, board, commission, court, department, official, political subdivision, tribunal, taxing authority or other instrumentality of any government, whether federal, state or local, domestic or foreign.  The provisions of this Section 12 shall survive the termination of this Agreement and the termination of the Executive’s employment hereunder and shall not be deemed to limit any protection or remedy available to Farmer Mac pursuant to federal, District of Columbia, state, or local law.
13.    Agreement Not to Solicit Farmer Mac Employees.  For a period of two (2) years after the termination of the Executive’s employment hereunder for any reason, the Executive shall not, directly or indirectly, without the prior written consent of Farmer Mac, induce any employee of Farmer Mac who is a “member of management” (as defined below) or is directly involved in the acquisition and securitization of Farmer Mac Qualified Loans to engage in any activity in which the Executive is prohibited from engaging in under this Agreement, or to terminate such person’s employment with Farmer Mac.  During the same time period, the Executive shall not directly or indirectly, either individually or as owner, agent, employee, consultant or otherwise, employ, offer employment to, lure, entice away or assist others in recruiting or hiring any person who is or was employed by Farmer Mac unless such person shall have ceased to be employed by Farmer Mac for a period of at least six (6) months and is not subject to any non-compete covenants substantially similar in nature to those contained in Section 11 hereof.  “Member of management” means the President, any Executive Vice President, any Senior Vice President, any Vice President, the Secretary, the Controller, or the Treasurer of Farmer Mac.  The provisions of this Section 13 shall survive the termination of this Agreement and the termination of the Executive’s employment hereunder and shall not be deemed to limit any protection or remedy available to Farmer Mac pursuant to federal, District of Columbia, state, or local law.
14.    Agreement Not to Disparage Farmer Mac.  The Executive shall not, directly or indirectly, make any statement (oral or written), or take any other action, which is in any way disparaging to or tends to diminish the reputation of Farmer Mac, its products, services, officers, directors, or employees, whether past or current.  This Section 14 shall not in any way limit any of Executive’s rights to report or disclose information that are expressly reserved in Section 12 (“Agreement Not to Use Confidential or Proprietary Information”), or in any way limit Executive’s ability to provide truthful testimony or information in response to a subpoena, court or arbitral order, or valid request by a Governmental Entity, or as otherwise required by law.  The provisions of this Section 14 shall survive the termination of this Agreement and the termination of the Executive’s employment hereunder and shall not be deemed to limit any protection or remedy available to Farmer Mac pursuant to federal, District of Columbia, state, or local law.
15.    Recoupment.  Amounts payable to the Executive under this Agreement shall be subject to any recoupment or “clawback” policy as may implemented and interpreted by Farmer Mac from time to time, including, but not limited to, any recoupment or “clawback” policy that may be implemented by Farmer Mac to comply with the Dodd-Frank Wall Street Reform and 

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Consumer Protection Act, or any other applicable law and regulation.  The provisions of this Section 15 shall survive the termination of this Agreement and the termination of the Executive’s employment hereunder and shall not be deemed to limit any protection or remedy available to Farmer Mac pursuant to federal, District of Columbia, state, or local law.
The parties below hereby execute this Agreement as of the date first written above.

Federal Agricultural Mortgage Corporation            Executive

By:  /s/ Lowell L. Junkins                        /s/ Bradford T. Nordholm        
Name:  Lowell L. Junkins                         Bradford T. Nordholm         
       Title: Chairman of the Board                        

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