Document:

EXHIBIT
10.28.1

    
      
        
 

    

    FARMER
MAC MORTGAGE SECURITIES CORPORATION,

    As
Note Purchaser

    

    NATIONAL
RURAL UTILITIES

    COOPERATIVE
FINANCE CORPORATION,

    As
Borrower

    

    FEDERAL
AGRICULTURAL MORTGAGE CORPORATION,

    As
Guarantor

    
       

      
        

      

    

    

    FIRST
AMENDMENT TO NOTE PURCHASE AGREEMENT

     

    
      

    

     

    Dated
as of July 13, 2009

     

    
      
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    FIRST
AMENDMENT TO NOTE PURCHASE AGREEMENT

     

    FIRST
AMENDMENT TO NOTE PURCHASE AGREEMENT, dated as of July 13, 2009 (“Amendment”),
among FARMER MAC MORTGAGE SECURITIES CORPORATION (the “Purchaser”), a wholly
owned subsidiary of FEDERAL AGRICULTURAL MORTGAGE CORPORATION, a
federally-chartered instrumentality of the United States and an institution of
the Farm Credit System (“Farmer Mac” or the
“Guarantor”);
NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION, a cooperative
association existing under the laws of the District of Columbia (“National Rural”); and
Farmer Mac, as Guarantor.

     

    RECITALS

     

    WHEREAS,
the Purchaser, Farmer Mac, and National Rural are parties to a certain Note
Purchase Agreement dated as of February 5, 2009 (“Note Purchase Agreement”);
and

    

    WHEREAS,
the parties have agreed to modify the Note Purchase Agreement as set forth
herein.

    

    NOW,
THEREFORE, in consideration of the mutual agreements herein contained, Farmer
Mac, the Purchaser and National Rural agree as follows:

    

    1.           Recitals.  The
foregoing Recitals are hereby incorporated by reference into this
Amendment.

    

    2.           Definitions.  Capitalized
terms used herein and not otherwise defined shall have the meanings assigned to
them in the Note Purchase Agreement.

    

    3.           Amendment.

    

    (a)           The
Note Purchase Agreement is hereby amended by deleting the existing definition of
Closing Date and replacing it with the following definition in Section
1.01:

    

    “Closing Date” means
the date of the funding of each issuance of Notes hereunder, which date shall be
set forth in the applicable Pricing Agreement.

    

    (b)           The
Note Purchase Agreement is hereby amended by adding the following definition of
Final Maturity Date in Section 1.01:

    

    “Final Maturity Date”
means December 31, 2016, or such other date as agreed to by the
parties.

    

    (c)           The
Note Purchase Agreement is hereby amended by deleting Section 2.01 in its
entirety and replacing it with the following:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
2.01            Purchase of Notes; Minimum
Denominations.  The
Purchaser agrees to purchase Notes, at 100% of their principal amount, from time
to time, on or before the Final Maturity Date, as requested by National Rural by
written notice (each, a “Notice of Borrowing”)
to Farmer Mac in an aggregate principal amount, for all Notes outstanding
hereunder at any one time, not in excess of $500 million, subject to
satisfaction of the conditions set forth herein.  National Rural may
borrow, repay (subject to the terms of the applicable Notes being repaid) and
reborrow funds at any time or from time to time up to, but not including the
Final Maturity Date.  Each advance under this Agreement shall be
disbursed in a minimum amount of $50 million and additional increments of
$5 million in excess thereof or such other amounts as agreed to in the
applicable Pricing Agreement.  Each advance shall price within 3
Business Days of National Rural providing a Notice of Borrowing to Farmer Mac
and shall close and fund within 3 Business Days of pricing, subject to
satisfaction of the conditions set forth herein and in accordance with the
procedures set forth in Section 2.02(d) hereof, unless otherwise agreed by the
parties hereto and set forth in the applicable Pricing Agreement.

     

    (d)           The
Note Purchase Agreement is hereby amended by deleting Section 2.02(d) in its
entirety and replacing it with the following:

    

    (d)           Notice of Borrowing;
Determination of Applicable Margin; Procedure for
Pricing.  (i)  Each Notice of Borrowing shall
indicate the amount of the Note and the desired maturity date of such Note that
National Rural requests to be advanced.  A Notice of Borrowing may
request preliminary pricing indications for more than one type of Note, with the
understanding that only one type of Note will be issued on any particular
Closing Date, unless otherwise agreed by the parties hereto in a Pricing
Agreement.  Each Notice of Borrowing shall also provide name,
telephone and email contact information of an authorized representative of
National Rural.

     

    (ii) Upon receipt of a Notice of
Borrowing from National Rural, Farmer Mac shall, within 2 Business Days, provide
to National Rural a preliminary indication of the Applicable Margin (LIBOR) or
Applicable Margin (Treasury), or both, as applicable to any Notice of Borrowing;
provided that
Farmer Mac shall not be obligated to provide an indication of pricing if Farmer
Mac uses its best efforts to obtain and provide such preliminary indication, but
determines in its sole discretion reasonably exercised after consultation with
National Rural that market conditions are unfavorable for the issuance of debt
to fund Notes with the terms set forth in the Notice of
Borrowing.  Upon an acceptance of such preliminary indication of
pricing by National Rural, the applicable Note will price within one Business
Day (and may price on the day of the preliminary pricing if the parties so
agree) thereafter, unless the parties otherwise agree to a longer period of time
as set forth in the applicable Pricing Agreement.  Farmer Mac shall
provide National Rural with written notice of the final Applicable Margin
(LIBOR) or Applicable Margin (Treasury) no later than the time of pricing of
each advance.  National Rural shall be deemed to approve of such
pricing so long as the Applicable Margin (LIBOR) or Applicable Margin (Treasury)
shall not exceed the preliminary indication by more than 5 basis points
(0.05%).  If the final pricing does exceed the preliminary indication
by more than 5 basis points (0.05%), an authorized representative of National
Rural must agree via email confirmation prior to or simultaneously with the
pricing to accept such margin.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e)           The
Note Purchase Agreement is hereby amended by deleting Section 2.03 in its
entirety and replacing it with the following:

    

    SECTION
2.03            Maturity.  Each
Note shall mature on the maturity date set forth in the applicable Pricing
Agreement and in any event no later than the Final Maturity Date.

    

    (f)           The
Note Purchase Agreement is hereby amended by deleting Section 4.01(d) in its
entirety and replacing it with the following:

    

    (d)           such
other information concerning National Rural or the Pledged Collateral as is
reasonably requested by Farmer Mac.

    

    4.           GOVERNING
LAW.    THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, FEDERAL LAW.  TO THE EXTENT FEDERAL LAW
INCORPORATES STATE LAW, THAT STATE LAW SHALL BE THE LAWS OF THE DISTRICT OF
COLUMBIA APPLICABLE TO CONTRACTS MADE AND PERFORMED THEREIN.

     

    5.           Inconsistency with Note
Purchase Agreement.  Except as otherwise amended or modified
herein, the terms, conditions and provisions of the Note Purchase Agreement
remain in full force and effect.  In the event of any conflict or
inconsistency between the terms of this Amendment and the Note Purchase
Agreement, the terms of this Amendment shall control.

    

    6.           Counterparts.  This
Amendment may be executed in two or more counterparts, each of which shall be an
original, but all of which together shall constitute one and the same
instrument.

     

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed as of the day and
year first above written.

    

    
      
        	 	
                FARMER
      MAC MORTGAGE

                SECURITIES
      CORPORATION

              
	 	 
      	 
      
	 	
                By:

              	 
      
	 	
                Name:

              	 
      
	 	
                Title:

              	 
      
	 	 
      
	 	
                FEDERAL
      AGRICULTURAL

              
	 	
                MORTGAGE
      CORPORATION

              
	 	 
      	 
      
	 	
                By:

              	 
      
	 	
                Name:

              	 
      
	 	
                Title:

              	 
      
	 	 
      
	 	
                NATIONAL
      RURAL UTILITIES

                COOPERATIVE
      FINANCE

                CORPORATION

              
	 	 
      	 
      
	 	
                By:

              	 
      
	 	
                Name:

              	 
      
	 	
                Title:EXHIBIT
      10.29

              

      

    

     

    FARMER
MAC MORTGAGE

    SECURITIES
CORPORATION,

    As
Note Purchaser

    

    NATIONAL
RURAL UTILITIES

    COOPERATIVE
FINANCE CORPORATION,

    As
Borrower

    

    U.S.
BANK NATIONAL ASSOCIATION,

    As
Collateral Agent

    

    FEDERAL
AGRICULTURAL

    MORTGAGE
CORPORATION,

    As
Guarantor

     

    
      
        

      

    

     

    PLEDGE
AGREEMENT

     

    
      
        

      

    

     

    Dated
as of February 5, 2009 

    
      	
               

            

    
  

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    i

     

    
      
        
          
            	
                    ARTICLE
      I

                  
	 
      
	
                    Definitions

                  
	 
      	 
      	 
      
	
                    Section
      1.01.

                  	
                    Definitions

                  	
                    3

                  
	
                    Section
      1.02.

                  	
                    Principles
      of Construction

                  	
                    6

                  
	 
      	 
      	 
      
	
                    ARTICLE
      II

                  
	 
      
	
                    Provisions
      as to Pledged Collateral

                  
	 
      
	
                    Section
      2.01.

                  	
                    Holding
      of Pledged Securities

                  	
                    7

                  
	
                    Section
      2.02.

                  	
                    UCC
      Filings

                  	
                    7

                  
	
                    Section
      2.03.

                  	
                    Withdrawal
      and Substitution of Pledged Collateral

                  	
                    8

                  
	
                    Section
      2.04.

                  	
                    [Reserved]

                  	
                    8

                  
	
                    Section
      2.05.

                  	
                    Addition
      of Pledged Collateral

                  	
                    8

                  
	
                    Section
      2.06.

                  	
                    Accompanying
      Documentation

                  	
                    8

                  
	
                    Section
      2.07.

                  	
                    Renewal;
      Extension; Substitution

                  	
                    9

                  
	
                    Section
      2.08.

                  	
                    Voting
      Rights; Interest and Principal

                  	
                    9

                  
	
                    Section
      2.09.

                  	
                    Protection
      of Title; Payment of Taxes; Liens, etc

                  	
                    10

                  
	
                    Section
      2.10.

                  	
                    Maintenance
      of Pledged Collateral

                  	
                    11

                  
	
                    Section
      2.11.

                  	
                    Representations,
      Warranties and Covenants

                  	
                    11

                  
	
                    Section
      2.12.

                  	
                    Further
      Assurances

                  	
                    12

                  
	 
      	 
      	 
      
	
                    ARTICLE
      III

                  
	 
      
	
                    [Reserved]

                  
	 
	
                    ARTICLE
      IV

                  
	 
      
	
                    Remedies

                  
	 
      	 
      	 
      
	
                    Section
      4.01.

                  	
                    Events
      of Default

                  	
                    12

                  
	
                    Section
      4.02.

                  	
                    Remedies
      upon Default

                  	
                    13

                  
	
                    Section
      4.03.

                  	
                    Application
      of Proceeds

                  	
                    15

                  
	
                    Section
      4.04.

                  	
                    Securities
      Act

                  	
                    15

                  
	 
      	 
      	 
      
	
                    ARTICLE
      V

                  
	 
      
	
                    The
      Collateral Agent

                  
	 
      	 
      	 
      
	
                    Section
      5.01.

                  	
                    Certain
      Duties and Responsibilities

                  	
                    16

                  
	
                    Section
      5.02.

                  	
                    Certain
      Rights of Collateral Agent

                  	
                    17

                  
	
                    Section
      5.03.

                  	
                    Money
      Held by Collateral Agent

                  	
                    18

                  
	
                    Section
      5.04.

                  	
                    Compensation
      and Reimbursement

                  	
                    19

                  

          

        

      

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    ii

        

    
      
        	
                Section
      5.05.

              	
                Corporate
      Collateral Agent Required; Eligibility

              	
                19

              
	
                Section
      5.06.

              	
                Resignation
      and Removal; Appointment of Successor

              	
                20

              
	
                Section
      5.07.

              	
                Acceptance
      of Appointment by Successor

              	
                20

              
	
                Section
      5.08.

              	
                Merger,
      Conversion, Consolidation or Succession to Business

              	
                21

              
	 
      	 
      	 
      
	
                ARTICLE
      VI

              
	 
      
	
                Miscellaneous

              
	 
      	 
      	 
      
	
                Section
      6.01.

              	
                Notices

              	
                21

              
	
                Section
      6.02.

              	
                Waivers;
      Amendment

              	
                21

              
	
                Section
      6.03.

              	
                Successors
      and Assigns

              	
                22

              
	
                Section
      6.04.

              	
                Counterparts;
      Effectiveness

              	
                22

              
	
                Section
      6.05.

              	
                Severability

              	
                22

              
	
                Section
      6.06.

              	
                GOVERNING
      LAW

              	
                22

              
	
                Section
      6.07.

              	
                WAIVER
      OF JURY TRIAL

              	
                22

              
	
                Section
      6.08.

              	
                Headings

              	
                23

              
	
                Section
      6.09.

              	
                Security
      Interest Absolute

              	
                23

              
	
                Section
      6.10.

              	
                Termination
      or Release

              	
                23

              
	
                Section
      6.11.

              	
                Collateral
      Agent Appointed Attorney-in-Fact

              	
                23

              

      

    

    

    Schedule
I – Additional Criteria for Eligible Securities

    Schedule
II – Addresses for Notices

    

    Annex A –
Form of Certificate of Pledged Collateral
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    PLEDGE
AGREEMENT, dated as of February 5, 2009, among NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORPORATION, a District of Columbia cooperative association
and its successors and assigns (hereinafter called “National Rural”),
FARMER MAC MORTGAGE SECURITIES CORPORATION, (the “Purchaser”), a wholly owned
subsidiary of FEDERAL AGRICULTURAL MORTGAGE CORPORATION, a federally-chartered
instrumentality of the United States and an institution of the Farm Credit
System and its successors and assigns (“Farmer Mac”), U.S.
BANK NATIONAL ASSOCIATION, a national banking association and its successors and
assigns (hereinafter called the “Collateral Agent”),
and Farmer Mac, as Guarantor.

     

    RECITALS
OF NATIONAL RURAL

     

    WHEREAS,
National Rural may from time to time issue one or more Notes to the Purchaser,
and the Purchaser may purchase such Notes, all upon the terms and subject to the
conditions set forth in the Note Purchase Agreement; and

     

    WHEREAS,
National Rural is required pursuant to the terms of the Note Purchase Agreement
to pledge certain property to the Collateral Agent for the benefit of the
Control Party to secure National Rural’s obligations on the Notes;

     

    NOW,
THEREFORE, THIS PLEDGE AGREEMENT WITNESSETH that, to secure the performance of
the certain Obligations contained in the Notes, the Note Purchase Agreement and
herein, National Rural hereby assigns and pledges to the Collateral Agent, its
successors and assigns, for the benefit of the Control Party, and grants to the
Collateral Agent, its successors and assigns, for the benefit of the Control
Party, a security interest in the following (collectively referred to as the
“Pledged
Collateral”) as provided in Article II: (a)(i) the Pledged
Securities and the certificates representing the Pledged Securities;
(ii) subject to Section 2.08, all payments of principal or interest,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of, in exchange for, and all other Proceeds
received in respect of, the Pledged Securities pledged hereunder;
(iii) subject to Section 2.08, all rights and privileges of National
Rural with respect to the Pledged Securities; (iv) all Proceeds of any of
the foregoing above; that may, on the date hereof or from time to time
hereafter, be subjected to the Lien hereof by National Rural by delivery,
assignment or pledge thereof to the Collateral Agent hereunder and the
Collateral Agent is authorized to receive the same as additional security
hereunder (subject to any reservations, limitations or conditions agreed to in
writing by National Rural and the Control Party respecting the scope or priority
of such security or the use and disposition of such property or the Proceeds
thereof).
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    3

     

    TO HAVE
AND TO HOLD the Pledged Collateral, together with all right, title, interest,
powers, privileges and preferences pertaining or incidental thereto, unto the
Collateral Agent, its successors and assigns, for the benefit of the Control
Party, forever; subject, however, to the
terms, covenants and conditions hereinafter set forth.

     

    ARTICLE
I

     

    Definitions

     

    SECTION
1.01.  Definitions.  As
used in this Pledge Agreement, the following terms shall have the following
meanings:

     

    “Accounting
Requirements” shall mean any system of accounts prescribed by a federal
regulatory authority having jurisdiction over the Member or, in the absence
thereof, the requirements of GAAP applicable to businesses similar to that of
the Member.

     

    “Allowable Amount” on
any date, means with respect to Eligible Securities, the aggregate principal
amount of such Eligible Securities theretofore advanced thereon which remains
unpaid on such date.

     

    “Certificate of Pledged
Collateral” means a certificate delivered to the Collateral Agent and the
Control Party substantially in the form of Annex A attached
hereto.

     

    “Class A Member” means
any Class A Member of National Rural as described in National Rural’s Bylaws
currently in effect.

     

    “Class B Member” means
any Class B Member of National Rural as described in National Rural’s Bylaws
currently in effect.

     

    “Collateral Agent”
means the Person named as the “Collateral Agent” in
the first paragraph of this instrument.

     

    “Control Party” means
(i) the Guarantor, so long as no Guarantor Default has occurred and is
continuing, or (ii) the holders of the Notes for so long as a Guarantor Default
has occurred and is continuing.

     

    “Control Party Notice”
and “Control Party
Order” mean, respectively, a written notice or order signed by any Vice
President of the Control Party and delivered to the Collateral Agent and
National Rural.

     

    “Control Party Notice of
Default” has the meaning given to that term in
Section 4.02.

     

    “Depreciation and
Amortization Expense” shall mean an amount
constituting the depreciation and amortization of the Member computed pursuant
to Accounting Requirements.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    4

     

    “Eligible Member”
means any Class A Member or Class B Member of National Rural as described in
National Rural’s Bylaws currently in effect.

    

    “Eligible Security”
means a note or bond of any Eligible Member payable or registered to, or to the
order of, National Rural, (A) in respect of which (i) the outstanding
principal amount under such note or bond, together with the outstanding
principal amount of any other notes or bonds of such Eligible Member pledged
hereunder or pledged to secure any other notes or bonds issued by National Rural
to Farmer Mac or any affiliate or sold by National Rural or any affiliate to any
trust whose beneficial ownership is owned or controlled by Farmer Mac, does not
aggregate more than $35 million, (ii) no default has occurred in the payment of
principal or interest in accordance with the terms of such note or bond that is
continuing beyond the contractual grace period (if any) provided in such note or
bond for such payment and (iii) no “event of default” as defined in such
note or bond (or in any instrument creating a security interest in favor of
National Rural in respect of such note or bond), shall exist that has resulted
in the exercise of any right or remedy described in such note or bond (or in any
such instrument); (B) which is not classified by National Rural as a
non-performing loan under generally accepted accounting principles in the United
States; and (C) which otherwise satisfies the criteria set forth on Schedule I
hereto.

     

    “Equity” means the
aggregate of the Member's equities and margins computed pursuant to Accounting
Requirements.

     

    “Event of Default” has
the meaning set forth in Section 4.01.

     

    “Facility Rating”
means the facility rating assigned by National Rural to an Eligible Security
from time to time in accordance with National Rural's internal risk rating
system.

     

    “GAAP” means generally
accepted accounting principles in the United States as in effect from time to
time.

     

    “Guarantor Default”
means a default by the Guarantor under its obligations pursuant to Article IX of
the Note Purchase Agreement which is existing and continuing.

     

    “Interest Expense”
means an amount constituting the interest expense with respect to Long-Term Debt
of the Member computed pursuant to Accounting Requirements.

     

    “Lien” means any lien,
pledge, charge, mortgage, encumbrance, debenture, hypothecation or other similar
security interest attaching to any part of the Pledged Collateral.

     

    “Lien of this Pledge
Agreement” or “Lien hereof” means
the Lien created by these presents.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    5

     

    “Long-Term Debt” is
determined in accordance with the Uniform System of Accounts prescribed at the
time by RUS or, if such Member is not required to maintain its accounts in
accordance with said Uniform System of Accounts, otherwise determined in
accordance with GAAP.

     

    “Member” shall mean
any Person who is member of National Rural.

     

    “Modified Debt Service
Coverage Ratio—Distribution” shall mean the definition of Coverage Ratio
as defined in the Indenture dated October 25, 2007 by and between National Rural
Utilities Cooperative Finance Corporation and U.S. Bank National Association for
the Collateral Trust Bonds.

     

    "Modified Debt Service
Coverage Ratio—G&T" shall mean the ratio determined as follows: for
any calendar year add (i) Operating Margins, (ii) Non-Operating
Margins—Interest, (iii) Interest Expense, (iv) Depreciation and Amortization
Expense, and (v) cash received in respect of generation and transmission and
other capital credits, and divide the sum so obtained by the sum of all payments
of Principal and Interest Expense required to be made during such calendar year;
provided, however, that in the
event that any amount of Long-Term Debt has been refinanced during such year,
the payments of Principal and Interest Expense required to be made during such
year on account of such refinanced amount of Long-Term Debt shall be based (in
lieu of actual payments required to be made on such refinanced amount of
Long-Term Debt) upon the larger of (i) an annualization of the payments required
to be made with respect to the refinancing debt during the portion of such year
such refinancing debt is outstanding or (ii) the payment of Principal and
Interest Expense required to be made during the following year on account of
such refinancing debt.

    

    “National Rural
Notice” and “National Rural Order”
mean, respectively, a written notice or order signed in the name of National
Rural by either its Chief Executive Officer or its Chief Financial Officer, and
by any Vice President of National Rural, and delivered to the Collateral Agent
and the Control Party.

     

    “Non-Operating
Margins—Interest” means the amount representing the interest component of
non-operating margins of the Member computed pursuant to Accounting
Requirements.

     

    “Note Purchase
Agreement” means the Note Purchase Agreement dated the date hereof
between National Rural, the Purchaser and Farmer Mac, as the same may be amended
from time to time in accordance with the terms thereof.

     

    “Notes” means the note
or notes issued by National Rural to the Purchaser under the Note Purchase
Agreement.

     

    “Obligations” means
the due and punctual performance of the obligations of National Rural to make
payments of principal, and interest on the Notes.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    6

     

    “Officers’
Certificate” means a certificate signed by any Vice President of National
Rural, and delivered to the Control Party and/or the Collateral Agent, as
applicable.

     

    “Operating Margins”
means the amount of patronage capital and operating margins of the Member
computed pursuant to Accounting Requirements.

     

    “Person” means any
individual, corporation, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization or government or any agency or
political subdivision thereof.

     

    “Pledge Agreement”
means this Pledge Agreement, as originally executed and as it may from time to
time be amended pursuant to the applicable provisions hereof.

     

    “Pledged Collateral”
has the meaning set forth in the Granting Clause.

     

    “Pledged Securities”
means at any time the Eligible Securities listed on Schedule A and/or
Schedule B to the Certificate of Pledged Collateral most recently
delivered.

     

    “Principal” means the
amount of principal billed on account of Long-Term Debt of the Member computed
pursuant to Accounting Requirements.

     

    “Proceeds” has the
meaning specified in Section 9-102 of the Uniform Commercial
Code.

     

    “RUS” mean the Rural
Utilities Service of the United States Department of Agriculture, acting by and
through the Administrator of the Rural Utilities Service, and including any
successor agencies or departments.

     

    “Total Assets Ratio”
means an amount constituting the total assets of the Member computed pursuant to
Accounting Requirements.

     

    “Total Capitalization
Ratio” means the Total Margins and Equity as a percentage of the sum of
((1)Total Margins and Equity plus (2) Long Term Debt).

     

    “Total Margins and
Equity” means the Member’s total margins and equity computed pursuant to
Accounting Requirements.

     

    “Uniform Commercial
Code” means the Uniform Commercial Code as from time to time in effect in
the District of Columbia.

     

    “Vice President” means
any vice president of National Rural or Farmer Mac or the Purchaser, as
applicable, whether or not designated by a number or a word or words added
before or after the title “vice president”.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    7

     

    SECTION
1.02.  Other
Defined Terms; Principles of Construction.  Capitalized terms
used but not defined in this Pledge Agreement shall have the meanings given to
them in the Note Purchase Agreement.  Unless the context shall
otherwise indicate, the terms defined in Section 1.01 hereof include the
plural as well as the singular and the singular as well as the
plural.  The words “hereafter”, “herein”, “hereof”, “hereto” and
“hereunder”, and words of similar import, refer to this Agreement as a
whole.  The descriptive headings of the various articles and sections
of this Agreement were formulated and inserted for convenience only and shall
not be deemed to affect the meaning or construction of the provisions
hereof.

     

    ARTICLE
II

     

    Provisions as to Pledged
Collateral

     

    SECTION
2.01.  Holding of Pledged
Securities.

     

    (a)  National
Rural shall make available to the Control Party, within thirty (30) days of a
pledge of the Pledged Securities in connection with an advance (or for a longer
period as National Rural and the Control Party agree), such back-up information
as is reasonably necessary in order to allow the Control Party to confirm
compliance of such Pledged Securities to the requisite criteria as outlined
herein.  Upon receipt of the back-up information, the Control Party
shall have ninety (90) days to object in writing to the inclusion of any item of
the Pledged Securities as part of the Pledged Collateral.  If the
Control Party reasonably determines that any of the Pledged Securities do not
meet the criteria for Eligible Securities, then National Rural shall have thirty
(30) days in which to provide substitute collateral, and the timeline specified
above for National Rural to make available back-up material and confirmation
shall also apply as to the substituted collateral.

     

    (b)  The
Collateral Agent, on behalf of the Control Party, shall hold the Pledged
Securities in the name of National Rural (or its nominee), endorsed or assigned
in blank or in favor of the Collateral Agent.  Upon occurrence of an
Event of Default, the Collateral Agent, on behalf of the Control Party, shall
have the right (in its sole and absolute discretion), to the extent a register
is maintained therefor, to register the Pledged Securities in the Collateral
Agent’s own name as pledgee, or in the name of the Collateral Agent’s nominee
(as pledgee or as sub-agent) or to continue to hold the Pledged Securities in
the name of National Rural, endorsed or assigned in blank or in favor of the
Collateral Agent.  Upon cessation of such Event of Default, the
Collateral Agent shall take such action as is necessary to again cause the
Pledged Securities to be registered in the name of National Rural (or its
nominee).

     

    SECTION
2.02.  UCC
Filings.  National Rural shall prepare and file in the proper
Uniform Commercial Code filing office in the District of Columbia (i) on or
prior to the date of the first purchase of a Note under the Note Purchaser
Agreement, a financing statement recording the Collateral Agent’s interest in
the Pledged Collateral; and (ii) from time to time thereafter, continuation
statements or such other filings as are necessary to maintain the perfection of
the Lien hereof on the Pledged Collateral.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    8

     

    SECTION
2.03.  Withdrawal and Substitution
of Pledged Collateral. 
(a)  Any part of the Pledged Collateral may be withdrawn by National
Rural or substituted for other Eligible Securities by National Rural and shall
be delivered to National Rural by the Collateral Agent upon National Rural Order
at any time and from time to time, together with any other documents or
instruments of transfer or assignment necessary to reassign to National Rural
said Pledged Collateral and the interest of National Rural, provided the
aggregate Allowable Amount of Pledged Collateral remaining after such withdrawal
or substitution shall at least equal the aggregate principal amount of the Notes
outstanding after such withdrawal or substitution, as shown by the Certificate
of Pledged Collateral furnished to the Collateral Agent pursuant to
Subsection (b)(i) of this Section.

     

    (b)  Prior
to any such withdrawal or substitution, the Collateral Agent shall be furnished
with the following instruments:

     

    (i) a
Certificate of Pledged Collateral, dated as of the last day of the calendar
month most recently ended at least 10 Business Days prior to such withdrawal or
substitution (or a more recent date, at National Rural’s option), showing that
immediately after such withdrawal or substitution the requirements of Subsection
(a) of this Section will be satisfied; and

     

    (ii) an
Officers’ Certificate certifying that no Event of Default has occurred which has
not been remedied.

     

    Upon any
such withdrawal or substitution, National Rural shall deliver any Eligible
Securities to be substituted and the Collateral Agent shall execute any
instruments of transfer or assignment specified in a National Rural Order as
necessary to vest in National Rural any part of the Pledged Collateral
withdrawn.

     

    In case
an Event of Default shall have occurred and be continuing, National Rural shall
not withdraw or substitute any part of the Pledged Collateral.

     

    SECTION
2.04.  [Reserved.]

     

    SECTION
2.05.  Addition of Pledged
Collateral.  At any time, National Rural may pledge additional
Eligible Securities under this Pledge Agreement by delivering such Pledged
Collateral to the Collateral Agent, accompanied by a Certificate of Pledged
Collateral specifying such additional collateral and dated as of the last day of
the calendar month most recently ended at least 10 Business Days prior thereto
(or a more recent date at National Rural’s option).

     

    SECTION
2.06.  Accompanying
Documentation.  Where Eligible Securities are delivered to the
Collateral Agent under Section 2.01, 2.03 or Section 2.05, such securities
shall be accompanied by the appropriate instruments of transfer executed in
blank and in a form satisfactory to the Collateral Agent and by such other
instruments and documents as the Collateral Agent may reasonably
request.  All other property delivered to the Collateral Agent under
Section 2.01, 2.03 or Section 2.05 and comprising part of the Pledged
Collateral shall be accompanied by proper instruments of assignment duly
executed by National Rural and such other instruments or documents as the
Collateral Agent may reasonably request.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    9

     

    SECTION
2.07.  Renewal; Extension;
Substitution.  Unless and until an Event of Default shall have
occurred and be continuing, National Rural may at any time renew or extend,
subject to the Lien of this Pledge Agreement, any Pledged Security upon any
terms or may accept in place of and in substitution for any such
Pledged  Security, another Eligible Security or Securities of the same
issuer or of any successor thereto for at least the same unpaid principal
amount, all as evidenced by a National Rural Order delivered to the Collateral
Agent; provided, however, that in case
of any substitution, Eligible Securities substituted as aforesaid shall be
subject to the Lien of this Pledge Agreement as part of the Pledged Collateral
and be held in the same manner as those for which they shall be substituted, and
in the case of each substituted Eligible Security National Rural shall provide
an Officers’ Certificate certifying to the Collateral Agent that such
substituted security satisfies the requirements of this Section.  So
long as no Event of Default shall have occurred and be continuing, the
Collateral Agent, upon National Rural Order stating that no Event of Default
shall have occurred and be continuing, shall execute any consent to any such
renewal, extension or substitution as shall be specified in such National Rural
Order.

     

    SECTION
2.08.  Voting Rights; Interest and
Principal.  (a)  Unless
and until an Event of Default has occurred and is continuing, and the Control
Party delivers to the Collateral Agent a Control Party Notice of Default
suspending National Rural’s rights under this clause:

     

    (i)
National Rural shall be entitled to exercise any and all voting and/or other
consensual rights and powers inuring to an owner of Pledged Securities or any
part thereof provided that such
rights and powers shall not be exercised in any manner inconsistent with the
terms of the Note Purchase Agreement or this Pledge Agreement.

     

    (ii) The
Collateral Agent shall execute and deliver to National Rural, or cause to be
executed and delivered to National Rural, all such proxies, powers of attorney
and other instruments as National Rural may reasonably request for the purpose
of enabling National Rural to exercise the voting and/or consensual rights and
powers it is entitled to exercise pursuant to subparagraph (i)
above.

     

    (iii)
National Rural shall be entitled to receive and retain any and all interest,
principal and other distributions paid on or distributed in respect of the
Pledged Securities; provided that any
non-cash interest, principal or other distributions that would constitute
Pledged Securities if pledged hereunder, and received in exchange for Pledged
Securities or any part thereof pledged hereunder, or in redemption thereof, or
as a result of any merger, consolidation, acquisition or other exchange of
assets to which such issuer of Pledged Securities may be a party or otherwise,
shall be and become part of the Pledged Collateral, and, if received by National
Rural, shall not be commingled by National Rural with any of its other funds or
property but shall be held separate and apart therefrom, shall be held in trust
for the benefit of the Collateral Agent and shall be forthwith delivered to the
Collateral Agent in the same form as so received (with any necessary
endorsement).
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    10

     

    (b)  If
an Event of Default shall have occurred and be continuing, then, to the extent
such rights are suspended by the applicable Control Party Notice of Default, all
rights of National Rural to interest, principal or other distributions that
National Rural is authorized to receive pursuant to paragraph (a)(iii) of
this Section 2.08 shall cease, and all such suspended rights shall
thereupon become vested in the Collateral Agent, which shall have the sole and
exclusive right and authority to receive and retain such interest, principal or
other distributions.  All interest, principal or other distributions
received by National Rural contrary to the provisions of this Section 2.08
shall be held in trust for the benefit of the Collateral Agent, shall be
segregated from other property or funds of National Rural and shall be forthwith
delivered to the Collateral Agent in the same form as so received (with any
necessary endorsement).  Any and all money and other property paid
over to or received by the Collateral Agent pursuant to the provisions of this
paragraph (b) shall be retained by the Collateral Agent in an account to be
established by the Collateral Agent upon receipt of such money or other property
and shall be applied in accordance with the provisions of Section 4.03 to
the fullest extent permitted by applicable law.  After all Events of
Default have ceased, the Collateral Agent shall promptly repay to National Rural
(without interest) all interest, principal or other distributions that National
Rural would otherwise be permitted to retain pursuant to the terms of paragraph
(a)(iii) of this Section 2.08 and that remain in such account.

     

    (c)  If
an Event of Default shall have occurred and be continuing, then, to the extent
such rights are suspended by the applicable Control Party Notice of Default, all
rights of National Rural to exercise the voting and consensual rights and powers
it is entitled to exercise pursuant to paragraph (a)(i) of this
Section 2.08, and the obligations of the Collateral Agent under
paragraph (a)(ii) of this Section 2.08, shall cease, and all such
rights shall thereupon become vested in the Collateral Agent, which shall have
the sole and exclusive right and authority to exercise such voting and
consensual rights and powers; provided that the
Collateral Agent shall have the right from time to time during the existence of
such Event of Default to permit National Rural to exercise such rights and
powers.

     

    SECTION
2.09.  Protection of Title; Payment
of Taxes; Liens, etc.  National Rural will:

     

    (i) duly
and promptly pay and discharge, or cause to be paid and discharged, before they
become delinquent, all taxes, assessments, governmental and other charges
lawfully levied, assessed or imposed upon or against any of the Pledged
Collateral, including the income or profits therefrom and the interests of the
Collateral Agent in such Pledged Collateral;
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    11

     

    (ii) duly
observe and conform to all valid requirements of any governmental authority
imposed upon National Rural relative to any of the Pledged Collateral, and all
covenants, terms and conditions under or upon which any part thereof is
held;

     

    (iii)
cause to be paid and discharged all lawful claims (including, without
limitation, income taxes) which, if unpaid, might become a lien or charge upon
Pledged Collateral; and

     

    (iv) do
all things and take all actions necessary to keep the Lien of this Pledge
Agreement a first and prior lien upon the Pledged Collateral and protect its
title to the Pledged Collateral against loss by reason of any foreclosure or
other proceeding to enforce any lien prior to or pari passu with the Lien
of this Pledge Agreement.

     

    Nothing
contained in this Section shall require the payment of any such tax,
assessment, claim, lien or charge or the compliance with any such requirement so
long as the validity, application or amount thereof shall be contested in good
faith; provided, however, that
National Rural shall have set aside on its books such reserves (segregated to
the extent required by generally accepted accounting principles) as shall be
deemed adequate with respect thereto as determined by the Board of Directors of
National Rural (or a committee thereof).

     

    SECTION
2.10.  Maintenance of Pledged
Collateral.  National Rural shall cause the Allowable Amount of
Pledged Collateral held by the Collateral Agent at all times to be not less than
100% of the aggregate principal amount of the Notes outstanding.

     

    SECTION
2.11.  Representations, Warranties
and Covenants.  National Rural represents, warrants and
covenants to the Collateral Agent, for the benefit of the Control Party, that
from the time that Pledged Collateral is pledged hereunder, and for so long as
such Pledged Collateral is required to remain pledged:

     

    (a)
except for the Lien hereof and any Lien consented to in writing by Farmer Mac or
the Control Party, National Rural (i) is and will continue to be the direct
owner, beneficially and of record, of the Pledged Securities from time to time
pledged hereunder, (ii) holds and will continue to hold the same free and
clear of all Liens, other than Liens created by this Pledge Agreement,
(iii) will make no assignment, pledge, hypothecation or transfer of, or
create or permit to exist any security interest in or other Lien on, the Pledged
Collateral, other than Liens created by this Pledge Agreement and (iv) will
defend its title or interest thereto or therein against any and all Liens (other
than the Lien created by this Pledge Agreement), however arising, of all Persons
whomsoever;
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    12

     

    (b)
except for restrictions and limitations imposed by the Note Purchase Agreement
or securities laws generally, the Pledged Securities are and will continue to be
freely transferable and assignable, and none of the Pledged Securities are or
will be subject to any restriction of any nature that might prohibit, impair,
delay or otherwise affect the pledge of such Pledged Securities hereunder, the
sale or disposition thereof pursuant hereto or the exercise by the Collateral
Agent of rights and remedies hereunder;

     

    (c)
National Rural has the power and authority to pledge the Pledged Collateral
pledged by it hereunder in the manner hereby done or contemplated;

     

    (d) no
consent or approval of any governmental authority, any securities exchange or
any other Person was or is necessary to the validity of the pledge effected
hereby (other than such as have been obtained and are in full force and effect);
and

     

    (e) by
virtue of the execution and delivery by National Rural of this Pledge Agreement,
when any Pledged Securities are delivered to the Collateral Agent in accordance
with this Pledge Agreement, the Collateral Agent will obtain a legal and valid
Lien upon and security interest in such Pledged Securities as security for the
payment and performance of the Obligations.

     

    SECTION
2.12.  Further
Assurances.  National Rural will execute and deliver, or cause
to be executed and delivered, all such additional instruments and do, or cause
to be done, all such additional acts as (a) may be necessary or proper,
consistent with the Granting Clause hereof, to carry out the purposes of this
Pledge Agreement and to make subject to the Lien hereof any property intended so
to be subject or (b) may be necessary or proper to transfer to any
successor the estate, powers, instruments and funds held hereunder and to
confirm the Lien of this Pledge Agreement.  National Rural will also
cause to be filed, registered or recorded any instruments of conveyance,
transfer, assignment or further assurance in all offices in which such filing,
registering or recording is necessary to the validity thereof or to give notice
thereof.

     

    ARTICLE
III

     

    [Reserved]

     

    ARTICLE
IV

     

    Remedies

     

    SECTION
4.01.  Events of
Default.  “Event of Default”,
wherever used herein, means any “Event of Default” as defined in
Section 7.01(a) of the Note Purchase Agreement, provided that, for
the purposes of this Pledge Agreement:

     

    (a) the
Collateral Agent shall not be required to recognize that an Event of Default
exists before such time as the Collateral Agent receives a Control Party Notice
or National Rural Notice stating that an Event of Default exists and specifying
the particulars of such default in reasonable detail; and
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    13

     

    (b) the
Collateral Agent shall not be required to recognize that an Event of Default has
ceased until (i) such time as the Collateral Agent receives a Control Party
Notice stipulating that such event has ceased to exist; or (ii) 30 days after
receipt by the Collateral Agent of a National Rural Notice stipulating that such
event has ceased to exist, provided that the
Collateral Agent does not receive a Control Party Notice within such timeframe
disputing the cessation of such Event of Default, and further provided that
no additional Control Party Notice of Default shall have been received in
respect of any other subsisting Event(s) of Default.  Upon receipt of
any National Rural Notice under subparagraph (ii) of this Subsection, the
Collateral Agent shall provide a copy of such National Rural Notice to the
Control Party.

     

    SECTION
4.02.  Remedies upon
Default.  If an Event of Default shall have occurred and be
continuing, the Control Party may issue a notice (a “Control Party Notice of
Default”), which may be combined with the notice provided under
Section 4.01(b), suspending the rights of National Rural under
Section 2.08 in part without suspending all such rights (as specified by
the Control Party in its sole and absolute discretion) without waiving or
otherwise affecting the Control Party’s rights to give additional Control Party
Notices of Default from time to time suspending other rights under
Section 2.08 so long as an Event of
Default has occurred and is continuing.  Subject to paragraph (b) of
this Section 4.02, upon cessation of an Event of Default, all rights of
National Rural suspended under the applicable Control Party Notice of Default
shall revest in National Rural.

     

    (a)  Upon
the occurrence of an Event of Default, the Collateral Agent shall, for the
benefit and at the direction of the Control Party, have the right to exercise
any and all rights afforded to a secured party under the Uniform Commercial Code
or other applicable law.  Without limiting the generality of the
foregoing, National Rural agrees that the Collateral Agent shall have the right,
but only if so instructed by a the Control Party Order and subject to the
requirements of applicable law and the Collateral Agent’s right (in its sole and
absolute discretion) to receive indemnification or other reasonable assurances
that its costs and expenses in connection therewith will be paid, to sell or
otherwise dispose of all or any part of the Pledged Collateral at a public or
private sale or at any broker’s board or on any securities exchange, for cash,
upon credit or for future delivery as the Collateral Agent shall deem
appropriate.  The Collateral Agent shall be authorized at any such
sale of securities (if it deems it advisable to do so) to restrict the
prospective bidders or purchasers to Persons who will represent and agree that
they are purchasing the Pledged Collateral for their own account for investment
and not with a view to the distribution or sale thereof, and upon consummation
of any such sale the Collateral Agent shall have the right to assign, transfer
and deliver to the purchaser or purchasers thereof the Pledged Collateral so
sold.  Each such purchaser at any sale of Pledged Collateral shall
hold the property sold absolutely, free from any claim or right on the part of
National Rural, and National Rural hereby waives (to the extent permitted by
law) all rights of redemption, stay and appraisal which National Rural now has
or may at any time in the future have under any rule of law or statute now
existing or hereafter enacted.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    14

     

    (b)  The
Collateral Agent shall give National Rural 10 days’ written notice (which
National Rural agrees is reasonable notice within the meaning of
Section 9-611 of the Uniform Commercial Code or its equivalent in other
jurisdictions) of the Collateral Agent’s intention to make any sale of Pledged
Collateral.  Such notice, in the case of a public sale, shall state
the time and place for such sale and, in the case of a sale at a broker’s board
or on a securities exchange, shall state the board or exchange at which such
sale is to be made and the day on which the Collateral, or portion thereof, will
first be offered for sale at such board or exchange.  Any such public
sale shall be held at such time or times within ordinary business hours and at
such place or places as the Collateral Agent may fix and state in the notice (if
any) of such sale.  At any such sale, the Pledged Collateral, or
portion thereof, to be sold may be sold in one lot as an entirety or in separate
parcels, as the Collateral Agent may (in its sole and absolute discretion)
determine.  The Collateral Agent shall not be obligated to make any
sale of any Pledged Collateral if it shall determine not to do so, regardless of
the fact that notice of sale of such Pledged Collateral shall have been
given.  The Collateral Agent may, without notice or publication,
adjourn any public or private sale or cause the same to be adjourned from time
to time by announcement at the time and place fixed for sale, and such sale may,
without further notice, be made at the time and place to which the same was so
adjourned.  In case any sale of all or any part of the Pledged
Collateral is made on credit or for future delivery, the Pledged Collateral so
sold may be retained by the Collateral Agent until the sale price is paid by the
purchaser or purchasers thereof, but the Collateral Agent shall not incur any
liability in case any such purchaser or purchasers shall fail to take up and pay
for the Pledged Collateral so sold and, in case of any such failure, such
Pledged Collateral may be sold again upon like notice.  At any public
(or, to the extent permitted by law, private) sale made pursuant to this Pledge
Agreement, the Control Party may bid for or purchase, free (to the extent
permitted by law) from any right of redemption, stay, valuation or appraisal on
the part of National Rural (all said rights being also hereby waived and
released to the extent permitted by law), the Pledged Collateral or any part
thereof offered for sale and may make payment on account thereof by using any
claim then due and payable to the Control Party from National Rural as a credit
against the purchase price, and the Control Party may, upon compliance with the
terms of sale, hold, retain and dispose of such property without further
accountability to Pledged Collateral therefor.  For purposes hereof, a
written agreement to purchase the Pledged Collateral or any portion thereof
shall be treated as a sale thereof; the Collateral Agent shall be free to carry
out such sale pursuant to such agreement and National Rural shall not be
entitled to the return of the Pledged Collateral or any portion thereof subject
thereto, notwithstanding the fact that after the Collateral Agent shall have
entered into such an agreement all Events of Default shall have been remedied
and the Obligations paid in full.  As an alternative to exercising the
power of sale herein conferred upon it, the Collateral Agent may proceed by a
suit or suits at law or in equity to foreclose this Pledge Agreement and to sell
the Collateral or any portion thereof pursuant to a judgment or decree of a
court or courts having competent jurisdiction or pursuant to a proceeding by a
court-appointed receiver.  Any sale pursuant to the provisions of this
Section 4.02 shall be deemed to conform to the commercially reasonable
standards as provided in Section 9-610(b) of the Uniform Commercial Code or
its equivalent in other jurisdictions.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    15

     

    SECTION
4.03.  Application of
Proceeds.  The Collateral Agent shall apply the proceeds of any
collection or sale of Pledged Collateral, including any Pledged Collateral
consisting of cash, as follows to the fullest extent permitted by applicable
law:

     

    FIRST, to
the payment of all reasonable costs and expenses incurred by the Collateral
Agent in connection with or reasonably related or reasonably incidental to such
collection or sale or otherwise in connection with or related or incidental to
this Pledge Agreement or any of the Obligations, including all court costs and
the reasonable fees and expenses of its agents and legal counsel, the repayment
of all advances made by the Collateral Agent (in its sole discretion) hereunder
on behalf of National Rural and any other reasonable costs or expenses incurred
in connection with the exercise of any right or remedy hereunder;

     

    SECOND,
to the payment to the Control Party
in full of the Obligations;
such payment to be for an amount certified in a Control Party
Notice delivered to the Collateral Agent as being the amount due and owing to
the Control
Party under the Obligations; and

     

    THIRD, to
National Rural, its successors or assigns, or as a court of competent
jurisdiction may otherwise direct.

     

    Upon any
sale of the Pledged Collateral by the Collateral Agent (including pursuant to a
power of sale granted by statute or under a judicial proceeding), the receipt of
the Collateral Agent or of the officer making the sale shall be a sufficient
discharge to the purchaser or purchasers of the Pledged Collateral so sold and
such purchaser or purchasers shall not be obligated to see to the application of
any part of the purchase money paid over to the Collateral Agent or such officer
or be answerable in any way for the misapplication thereof.

     

    SECTION
4.04.  Securities Act.  In
view of the position of National Rural in relation to the Pledged Collateral, or
because of other current or future circumstances, a question may arise under the
Securities Act of 1933, as now or hereafter in effect, or any similar statute
hereafter enacted analogous in purpose or effect (such Act and any such similar
statute as from time to time in effect being called the “Federal Securities
Laws”) with respect to any disposition of the Pledged Collateral
permitted hereunder.  National Rural understands that compliance with
the Federal Securities Laws might very strictly limit the course of conduct of
the Collateral Agent if the Collateral Agent were to attempt to dispose of all
or any part of the Pledged Collateral, and might also limit the extent to which
or the manner in which any subsequent transferee of any Pledged Collateral could
dispose of the same.  Similarly, there may be other legal restrictions
or limitations affecting the Collateral Agent in any attempt to dispose of all
or part of the Pledged Collateral under applicable Blue Sky or other state
securities laws or similar laws analogous in purpose or
effect.  National Rural recognizes that in light of such restrictions
and limitations the Collateral Agent may, with respect to any sale of the
Pledged Collateral, limit the purchasers to those who will agree, among other
things, to acquire such Pledged Collateral for their own account, for
investment, and not with a view to the distribution or resale
thereof.  National Rural acknowledges and agrees that in light of such
restrictions and limitations, the Collateral Agent, in its sole and absolute
discretion (a) may proceed to make such a sale whether or not a
registration statement for the purpose of registering such Pledged Collateral or
part thereof shall have been filed under the Federal Securities Laws and
(b) may approach and negotiate with a single potential purchaser to effect
such sale.  National Rural acknowledges and agrees that any such sale
might result in prices and other terms less favorable to the seller than if such
sale were a public sale without such restrictions.  In the event of
any such sale, the Collateral Agent shall incur no responsibility or liability
for selling all or any part of the Pledged Collateral at a price that the
Collateral Agent, in its sole and absolute discretion, may in good faith deem
reasonable under the circumstances, notwithstanding the possibility that a
substantially higher price might have been realized if the sale were deferred
until after registration as aforesaid or if more than a single purchaser were
approached.  The provisions of this Section 4.04 will apply
notwithstanding the existence of a public or private market upon which the
quotations or sales prices may exceed substantially the price at which the
Collateral Agent sells.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    16

     

    ARTICLE
V

     

    The Collateral
Agent

     

    SECTION
5.01.  Certain Duties and
Responsibilities.  (a)  At all times under this
Pledge Agreement:

     

    (i) the
Collateral Agent undertakes to perform such duties and only such duties as are
specifically set forth in this Pledge Agreement, and no implied covenants or
obligations shall be read into this Pledge Agreement against the Collateral
Agent; and

     

    (ii) in
the absence of bad faith on its part, the Collateral Agent may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Collateral
Agent and substantially conforming to the requirements of this Pledge Agreement;
but in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Collateral Agent the
Collateral Agent shall be under a duty to examine the same to determine whether
or not they substantially conform to the requirements of this Pledge
Agreement.

     

    (b)  No
provision of this Pledge Agreement shall be construed to relieve the Collateral
Agent from liability for its own grossly negligent action, its own grossly
negligent failure to act, or its own willful misconduct, except
that:

     

    (i) this
Subsection shall not be construed to limit the effect of Subsection (a) of this
Section;
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    17

     

    (ii) the
Collateral Agent shall not be liable for any error of judgment made in good
faith, unless it shall be proved that the Collateral Agent was grossly negligent
in ascertaining the pertinent facts; and

     

    (iii) no
provision of this Pledge Agreement shall require the Collateral Agent to expend
or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

     

    (c)  Whether
or not therein expressly so provided, every provision of this Pledge Agreement
relating to the conduct or affecting the liability of or affording protection to
the Collateral Agent shall be subject to the provisions of this
Section.

     

    SECTION
5.02.  Certain Rights of Collateral
Agent.  Except as otherwise provided in
Section 5.01:

     

    (a) the
Collateral Agent may rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

     

    (b) any
request or direction of National Rural mentioned herein shall be sufficiently
evidenced by a National Rural Notice or National Rural Order;

     

    (c) any
request or direction of the Control Party mentioned herein shall be sufficiently
evidenced by a Control Party Notice or Control Party Order;

     

    (d)
whenever in the administration of this Pledge Agreement the Collateral Agent
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Collateral Agent (unless other
evidence be herein specifically prescribed) may, in the absence of bad faith on
its part, rely upon an Officers’ Certificate in the case of National Rural, and
a certificate signed by any Vice President of the Control Party in the case of
the Control Party;

     

    (e) the
Collateral Agent may consult with counsel and the advice of such counsel shall
be full and complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance
thereon;

     

    (f) the
Collateral Agent shall be under no obligation to exercise any of the rights or
powers vested in it by this Pledge Agreement at the request or direction of
either National Rural or the Control Party pursuant to this Pledge Agreement,
unless such party shall have offered to the Collateral Agent reasonable security
or indemnity against the costs, expenses and liabilities which might be incurred
by it in compliance with such request or direction;
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    18

     

    (g) the
Collateral Agent shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture or other
paper or document, or to recompute, verify, reclassify or recalculate any
information contained therein, but the Collateral Agent, in its sole and
absolute discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit, and, if the Collateral Agent shall determine
to make such further inquiry or investigation, it shall be entitled to examine
the books, records and premises of National Rural, personally or by agent or
attorney;

     

    (h) the
Collateral Agent may execute any of the powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the
Collateral Agent shall not be responsible for any misconduct or negligence on
the part of any agent or attorney appointed with due care by it
hereunder;

     

    (i)
unless explicitly stated herein to the contrary, the Collateral Agent shall have
no duty to inquire as to the performance of National Rural’s covenants
herein.  In addition, the Collateral Agent shall not be deemed to have
knowledge of any Event of Default unless the Collateral Agent has received a
Control Party Notice in accordance with Section 4.01(a), and shall not be
deemed to have knowledge of the cessation of the same until such time as it
receives a National Rural Notice in accordance with Section 4.01(b);
and

     

    (j)
unless explicitly stated herein to the contrary, the Collateral Agent shall have
no obligation to take any action with respect to any Event of Default until it
has received a Control Party Notice applicable to such event in accordance with
Section 4.01(a), and the Collateral Agent shall have no liability for any
action or inaction taken, suffered or omitted in respect of any such event by it
prior to such time as the applicable Control Party Notice is
delivered.  Similarly, the Collateral Agent shall have no obligation
to take any action with respect to the cessation of an Event of Default until it
has received a National Rural Notice applicable to such event in accordance in
accordance with Section 4.01(b), and the Collateral Agent shall have no
liability for any action or inaction taken, suffered or omitted in respect of
any such event by it prior to such time as the applicable National Rural Notice
is delivered.

     

    SECTION
5.03.  Money
Held by Collateral Agent.  Money held by the Collateral Agent
hereunder need not be segregated from other funds except to the extent required
by law.  The Collateral Agent shall have no liability to pay interest
on or (except as expressly provided herein) invest any such
moneys.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    19

     

    SECTION
5.04.  Compensation and
Reimbursement.  (a)   National Rural
agrees:

     

    (i) to
pay to the Collateral Agent from time to time such reasonable compensation for
all services rendered by it hereunder as shall have been set forth in an
agreement signed by National Rural;

     

    (ii)
except as otherwise expressly provided herein, to reimburse the Collateral Agent
upon its request for all reasonable expenses, out-of-pocket costs, disbursements
and advances incurred or made by the Collateral Agent in accordance with any
provision of this Pledge Agreement (including the reasonable compensation and
the expenses and disbursements of its agents and counsel), except to the extent
any such expense, disbursement or advance may be attributable to its gross
negligence or bad faith; and

     

    (iii) to
indemnify the Collateral Agent for, and to defend and hold it harmless against,
any loss, liability or expense incurred without gross negligence or bad faith on
its part, arising out of or in connection with the acceptance or administration
of this Pledge Agreement or the performance of its duties hereunder, including
the costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent such loss, liability or expense may be
attributable to its gross negligence or bad faith; provided, however, that
National Rural shall have no liability under this clause for any settlement of
any litigation or other dispute effected without the prior written consent of
National Rural (such consent not to be unreasonably withheld).

     

    (b)  Any
such amounts payable as provided hereunder shall be additional Obligations
secured by the Lien hereof.  The provisions of this Section 5.04
shall remain operative and in full force and effect regardless of the
termination of this Pledge Agreement or the Note Purchase Agreement, the
consummation of the transactions contemplated hereby, the repayment of any of
the Obligations, the invalidity or unenforceability of any term or provision of
this Pledge Agreement or the Note Purchase Agreement, or any investigation made
by or on behalf of the Collateral Agent or the Control Party.  All
amounts due under this Section 5.04 shall be payable on written demand
therefor.

     

    SECTION
5.05.  Corporate Collateral Agent
Required; Eligibility.  There shall at all times be a
Collateral Agent hereunder which shall be a corporation or association organized
and doing business under the laws of the United States of America or of any
State, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $50,000,000, subject to supervision or
examination by Federal or State authority.  If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published.  Neither National Rural nor
any Person directly or indirectly controlling, controlled by or under common
control with National Rural shall serve as Collateral Agent
hereunder.  If at any time the Collateral Agent shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    20

     

    SECTION
5.06.  Resignation and Removal;
Appointment of Successor.  (a)  No resignation or
removal of the Collateral Agent and no appointment of a successor Collateral
Agent pursuant to this Article shall become effective until the acceptance of
appointment by the successor Collateral Agent under
Section 5.07.

     

    (b)  The
Collateral Agent may resign at any time by giving written notice thereof to
National Rural.  If an instrument of acceptance by a successor
Collateral Agent shall not have been delivered to the Collateral Agent within 30
days after the giving of such notice of resignation, the resigning Collateral
Agent may petition any court of competent jurisdiction for the appointment of a
successor Collateral Agent.

     

    (c)  If
at any time:

     

    (i)
except if an Event of Default has occurred and is continuing, National Rural, in
its sole and absolute discretion, elects to remove the Collateral Agent;
or

     

    (ii) the
Collateral Agent shall cease to be eligible under Section 5.05 or shall
become incapable of acting or shall be adjudged a bankrupt or insolvent or a
receiver of the Collateral Agent or of its property shall be appointed or any
public officer shall take charge or control of the Collateral Agent or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation,

     

    then, in
any such case, National Rural may remove the Collateral Agent by delivery of a
National Rural Order to that effect.

     

    (d)  If
the Collateral Agent shall resign, be removed or become incapable of acting, or
if a vacancy shall occur in the office of Collateral Agent for any cause,
National Rural shall promptly appoint a successor Collateral Agent by delivering
a National Rural Notice to the retiring Collateral Agent, the successor
Collateral Agent and the Control Party to such effect.

     

    SECTION
5.07.  Acceptance of Appointment by
Successor.  Every successor Collateral Agent appointed
hereunder shall execute, acknowledge and deliver to National Rural, the Control
Party and to the retiring Collateral Agent an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Collateral
Agent shall become effective and such successor Collateral Agent, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Collateral Agent; but, on request of
National Rural, the Control Party or the successor Collateral Agent, such
retiring Collateral Agent shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Collateral Agent all the
rights, powers and trusts of the retiring Collateral Agent, and shall duly
assign, transfer and deliver to such successor Collateral Agent all property and
money held by such retiring Collateral Agent hereunder, subject nevertheless to
its Lien, if any, provided for in Section 5.04.  Upon request of
any such successor Collateral Agent, National Rural shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Collateral Agent all such rights, powers and
trusts.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    21

     

    No
successor Collateral Agent shall accept its appointment unless at the time of
such acceptance such successor Collateral Agent shall be eligible under
Section 5.05 hereof.

     

    SECTION
5.08.  Merger, Conversion,
Consolidation or Succession to Business.  Any corporation into
which the Collateral Agent may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Collateral Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Collateral Agent, shall be the successor of the Collateral Agent hereunder,
provided such corporation shall be eligible under Section 5.05 hereof
without the execution or filing of any paper or any further act on the part of
any of the parties hereto.

     

    ARTICLE
VI

     

    Miscellaneous

     

    SECTION
6.01.  Notices.  All
notices and other communications hereunder to be made to any party shall be in
writing and shall be addressed as specified in Schedule II attached hereto
as appropriate.  The address, telephone number, or facsimile number
for any party may be changed at any time and from time to time upon written
notice given by such changing party to the other parties hereto. A properly
addressed notice or other communication shall be deemed to have been delivered
at the time it is sent by facsimile (fax) transmission to the party or parties
to which it is given.

     

    (a)  All
National Rural Notices and National Rural Orders delivered to the Collateral
Agent shall be contemporaneously copied to the Control Party by National Rural;
all Control Party Notices and Control Party Orders delivered to the Collateral
Agent shall be contemporaneously copied by Farmer Mac to National Rural; and all
Collateral Agent notices delivered to either National Rural or Farmer Mac shall
be contemporaneously copied to the other such party by the Collateral
Agent.

     

    SECTION
6.02.  Waivers;
Amendment.  (a)  No failure or delay by a party in
exercising any right or power hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power.  The rights and remedies of each party hereunder are
cumulative and are not exclusive of any rights or remedies that such party would
otherwise have.  No waiver of any provision of this Pledge Agreement
or consent to any departure by any party therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this
Section 6.02, and then such waiver or consent shall be effective only in
the specific instance and for the purpose for which given.  No notice
or demand on any party in any case shall entitle any party to any other or
further notice or demand in similar or other
circumstances.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    22

     

    (b)  Neither
this Pledge Agreement nor any provision hereof may be waived, amended or
modified except pursuant to an agreement or agreements in writing entered into
by National Rural, the Collateral Agent, the Purchaser and Farmer
Mac.

     

    SECTION
6.03.  Successors and
Assigns.  Whenever in this Pledge Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the successors
and assigns of such party; and all covenants, promises and agreements by or on
behalf of National Rural, the Collateral Agent, the Purchaser, the Control Party
or Farmer Mac that are contained in this Pledge Agreement shall bind and inure
to the benefit of their respective successors and assigns.

     

    SECTION
6.04.  Counterparts;
Effectiveness.  This Pledge Agreement may be executed in
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute a single contract.  Delivery of an
executed signature page to this Pledge Agreement by facsimile transmission shall
be as effective as delivery of a manually signed counterpart of this Pledge
Agreement.

     

    SECTION
6.05.  Severability.  Any
provision of this Pledge Agreement held to be invalid, illegal or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof; and
the invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.  The parties
shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

     

    SECTION
6.06.  GOVERNING
LAW.  THIS PLEDGE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE UNITED STATES OF AMERICA, TO
THE EXTENT APPLICABLE, AND OTHERWISE THE LAWS OF THE STATE OF NEW
YORK.

     

    SECTION
6.07.  WAIVER OF JURY
TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
PLEDGE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS PLEDGE AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 6.07.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    23

     

    SECTION
6.08.  Headings.  Article
and Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Pledge Agreement and are not
to affect the construction of, or to be taken into consideration in
interpreting, this Pledge Agreement.

     

    SECTION
6.09.  Security Interest
Absolute.  All rights of the Collateral Agent and/or the
Control Party hereunder, the grant of a security interest in the Pledged
Collateral and all obligations of National Rural hereunder shall be absolute and
unconditional irrespective of (a) any lack of validity or enforceability of
the Note Purchase Agreement, any Note, any agreement with respect to any of the
Obligations or any other agreement or instrument relating to any of the
foregoing, (b) any change in the time, manner or place of payment of, or in
any other term of, all or any of the Obligations, or any other amendment or
waiver of or any consent to any departure from the Note Purchase Agreement, any
Note or any other agreement or instrument, (c) any exchange, release or
non-perfection of any Lien on other collateral, or any release or amendment or
waiver of or consent under or departure from any guarantee, securing or
guaranteeing all or any of the Obligations, or (d) any other circumstance
that might otherwise constitute a defense available to, or a discharge of,
National Rural in respect of the Obligations or this Pledge
Agreement.

     

    SECTION
6.10.  Termination or
Release.  (a)  This Pledge Agreement shall terminate
on the date when the Obligations have been indefeasibly paid in full, and at
such time the Lien hereof shall be released.

     

    (b)  Upon
any withdrawal, substitution or other disposal by National Rural of any Pledged
Collateral that is permitted by the terms of this Pledge Agreement, or upon the
effectiveness of any written consent to the release of the security interest
granted hereby in any Pledged Collateral, the Lien hereof securing such Pledged
Collateral shall be automatically released.

     

    (c)  In
connection with any termination or release pursuant to paragraph (a) or (b)
the Collateral Agent shall deliver to National Rural the Pledged Collateral and
shall execute and deliver to National Rural, at National Rural’s expense, all
documents that National Rural shall reasonably request to evidence such
termination or release.  Any execution and delivery of documents
pursuant to this Section 6.10 shall be without recourse to or warranty by
the Collateral Agent.
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    24

     

    SECTION
6.11.  Collateral Agent Appointed
Attorney-in-Fact.  National Rural hereby appoints the
Collateral Agent the attorney-in-fact of National Rural for the purpose of, upon
the occurrence and during the continuance of an Event of Default, carrying out
the provisions of this Pledge Agreement with respect to the Pledged Collateral
and taking any action and executing any instrument that the Collateral Agent may
deem necessary or advisable to accomplish the purposes hereof, which appointment
is irrevocable and coupled with an interest but is subject nevertheless to the
terms and conditions of this Pledge Agreement.  Without limiting the
generality of the foregoing, the Collateral Agent shall have the right, upon the
occurrence and during the continuance of an Event of Default, with full power of
substitution either in the Collateral Agent’s name or in the name of National
Rural (a) to receive, endorse, assign and/or deliver any and all notes,
acceptances, checks, drafts, money orders or other evidences of payment relating
to the Pledged Collateral or any part thereof; (b) to demand, collect,
receive payment of, give receipt for and give discharges and releases of all or
any of the Pledged Collateral; (c) to commence and prosecute any and all
suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect or otherwise realize on all or any of the Pledged
Collateral or to enforce any rights in respect of any Pledged Collateral;
(d) to settle, compromise, compound, adjust or defend any actions, suits or
proceedings relating to all or any of the Pledged Collateral; (e) to
notify, or to require National Rural to notify, obligors under Pledged
Securities to make payment directly to the Collateral Agent; and
(f) subject to the second sentence of Section 4.02(a), to use, sell,
assign, transfer, pledge, make any agreement with respect to or otherwise deal
with all or any of the Pledged Collateral, and to do all other acts and things
necessary to carry out the purposes of this Pledge Agreement, as fully and
completely as though the Collateral Agent were the absolute owner of the Pledged
Collateral for all purposes; provided that nothing
herein contained shall be construed as requiring or obligating the Collateral
Agent to make any commitment or to make any inquiry as to the nature or
sufficiency of any payment received by the Collateral Agent, or to present or
file any claim or notice, or to take any action with respect to the Pledged
Collateral or any part thereof or the moneys due or to become due in respect
thereof or any property covered thereby.  The Collateral Agent and the
Control Party shall be accountable only for amounts actually received as a
result of the exercise of the powers granted to them herein, and neither they
nor their officers, directors, employees or agents shall be responsible to
National Rural for any act or failure to act hereunder, except for their own
gross negligence or willful misconduct.

     

    [SIGNATURE
PAGE FOLLOWS]
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly
executed, all as of the day and year first above written.

     

    
      
        
          
            
              	
                      FARMER
      MAC MORTGAGE

                      SECURITIES
      CORPORATION,

                    
	 
	
                       
      by

                    
	 
      	 
      
	 
      	
                      Name:

                    
	 
      	
                      Title:

                    

            

          

        

      

    

     

    
      
        
          
            	
                    FEDERAL
      AGRICULTURAL

                    MORTGAGE
      CORPORATION,

                  
	 
	
                     
      by

                  
	 
      	 
      
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    

    
 

    
      
        
          
            	
                    NATIONAL
      RURAL UTILITIES

                    COOPERATIVE
      FINANCE CORPORATION,

                  
	 
	
                     
      By

                  
	 
      	 
      
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    

    
 

    
      
        
          
            	
                    U.S.
      BANK NATIONAL ASSOCIATION,

                  
	 
	
                     
      By

                  
	 
      	 
      
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE I 

    TO 

    PLEDGE
AGREEMENT

      

    ADDITIONAL
CRITERIA FOR ELIGIBLE SECURITIES1

       

    Criteria for Eligible
Security of Class A Eligible Member:  Each Class A Eligible
Member must satisfy the following criteria only on the date of the pledge of
such Eligible Security:

    

    
      	
               
      

            	
              ·

            	
              Long-Term
      Debt to Net Utility Plant Ratio, as the average ratio of the most recent
      three full calendar years for which financial information is available,
      does not exceed 90%.

            

    

    

    
      	
               
      

            	
              ·

            	
              Modified
      Debt Service Coverage Ratio—Distribution, as the average ratio of the most
      recent three full calendar years for which financial information is
      available, is greater than or equal to
1.35.

            

    

    

    
      	
               
      

            	
              ·

            	
              Equity
      to Total Assets Ratio, as the average ratio of the most recent three full
      calendar years for which financial information is available, is greater
      than or equal to 20%.

            

    

    

    
      	
               
      

            	
              ·

            	
              The
      Eligible Security has a Facility Rating by National Rural of “4.9” or
      lower.

            

    

    

    Criteria for Eligible
Security of Class B Eligible Member:  Each Class B Eligible
Member must satisfy the following criteria only on the date of the pledge of
such Eligible Security:

    

    
      	
               
      

            	
              ·

            	
              Equity
      to Total Capitalization Ratio, as the average ratio of the most recent
      three full calendar years for which financial information is available, is
      greater than or equal to 25%.

            

    

    

    
      	
               
      

            	
              ·

            	
              Modified
      Debt Service Coverage Ratio—G&T, as the average ratio of the most
      recent three full calendar years for which financial information is
      available, is greater than or equal to
1.10.

            

    

    

    
      	
               
      

            	
              ·

            	
              Equity
      to Total Assets Ratio, as the average ratio of the most recent three full
      calendar years for which financial information is available, is greater
      than or equal to 10%.

            

    

    

    
      	
               
      

            	
              ·

            	
              The
      Eligible Security has a Facility Rating by National Rural of “4.9” or
      lower.

            

    

     

    
      
        
1The
criteria set forth on this Schedule I shall be required to be satisfied only as
of the date of pledge of (1) any Pledged Securities that is being pledged for a
new advance or (2) any Pledged Securities that is being pledged for an existing
advance which is in substitution of, or in addition to, existing collateral, and
such criteria shall not be required to be satisfied with respect to Eligible
Securities after such date.

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE II

    TO

    PLEDGE
AGREEMENT

     

    Addresses for
Notices

     

    
      	
               
      

            	
              The
      addresses referred to in Section 6.01 hereof, for purposes of
      delivering communications and notices, are as
  follows:

            

    

     

    If to the
Purchaser or Farmer Mac:

     

    Federal
Agricultural Mortgage Corporation

    1133
21st
Street N.W., Suite 600

    Washington,
DC 20036

    Fax:  202-872-7713

    Attention:
Timothy L. Buzby, Vice President/Controller
  

    If to
Farmer Mac:

     

    Federal
Agricultural Mortgage Corporation

    1133 21st
Street, N.W., Suite 600

    Washington,
DC 20036

    Fax:  202-872-7713

    Attention
of: Timothy L. Buzby, Vice President/Controller

     

    With a
copy to:

     

    Federal
Agricultural Mortgage Corporation

    1133 21st
Street, N.W., Suite 600

    Washington,
DC 20036

    Fax:  202-872-7713

    Attention
of: Jerome G. Oslick, Vice President - General Counsel

     

    If to
National Rural:

     

    National
Rural Utilities Cooperative Finance Corporation

    2201
Cooperative Way

    Herndon,
VA 20171-3025

    Telephone:  703-709-6718

    Fax:  703-709-6779

    Attention
of: Steven L. Lilly, Senior Vice President &

    Chief
Financial Officer
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE II

    TO

    PLEDGE
AGREEMENT

      

    With a
copy to:

    

    National
Rural Utilities Cooperative Finance Corporation

    2201
Cooperative Way

    Herndon,
VA 20171-3025

    Telephone:  703-709-6712

    Fax:  703-709-6811

    Attention
of: John J. List, Esq., Senior Vice President &

    General
Counsel

    If to the
Collateral Agent:

     

    U.S. Bank
National Association

    100 Wall
Street

    Suite
1600

    New York,
NY 10005-3701

    Telephone:  (212)
361-2893

    Fax:  (212)
509-3384

    Attention
of: Beverly A. Freeney
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
A

    TO

    PLEDGE
AGREEMENT

     

    NATIONAL
RURAL UTILITIES

    COOPERATIVE
FINANCE CORPORATION

     

    PLEDGE
AGREEMENT DATED AS OF FEBRUARY 5, 2009

     

    CERTIFICATE
OF PLEDGED COLLATERAL FILED WITH

    U.S. BANK
NATIONAL ASSOCIATION, Collateral Agent

     

    ________________,
Chief Executive Officer (or Chief Financial Officer) and ____________________,
Vice-President, respectively, of National Rural Utilities Cooperative Finance
Corporation, hereby certify to the Control Party and the Collateral Agent under
the above-mentioned Pledge Agreement as amended to the date hereof (herein
called the “Pledge Agreement”) as follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    1.

                                                  	
                                                    The
      Allowable Amount of Pledged Collateral certified hereby, remaining on
      deposit with the Collateral Agent, as shown on Schedule
      A hereto, is

                                                  	 	$	 	 
	 
      	 
      	 	 	 	 
	
                                                    2.

                                                  	
                                                    The
      Allowable Amount of Pledged Collateral certified hereby, being deposited
      as shown on Schedule
      B hereto, is

                                                  	 	$	 	 
	 
      	 
      	 	 	 	 
	
                                                    3.

                                                  	
                                                    The
      aggregate principal amount of the Note(s) outstanding at the date hereof
      is

                                                  	 	$	 	 
	 
      	 
      	 	 	 	 
	
                                                    4.

                                                  	
                                                    The
      aggregate amount, if any, of the Note(s) to be issued on the basis of this
      Certificate is

                                                  	 	$	 	 
	 
      	 
      	 	 	 	 
	
                                                    5.

                                                  	
                                                    The
      sum of amounts in items 3 and 4 is

                                                  	 	$	 	 
	 
      	 
      	 	 	 	 
	
                                                    6.

                                                  	
                                                    The
      aggregate amount by which the Allowable Amount of Pledged Collateral
      exceeds the aggregate principal amount of the Note(s) outstanding (item 1
      plus 2 and minus 5) is

                                                  	 	$	 	 
	 
      	 
      	 	 	 	 
	
                                                    7.

                                                  	
                                                    The
      Allowable Amount of Pledged Collateral which is included in items 1
      and  2 above from Class B Eligible Members does not constitute
      more than 20% of the aggregate amount of any notes or bonds: (1) pledged
      hereunder; (2) pledged to secure any other notes or bonds issued by
      National Rural or any affiliate to Farmer Mac or any affiliate; (3) sold
      by National Rural or any affiliate to Farmer Mac or any affiliate; or (4)
      sold to any trust whose beneficial ownership is owned or controlled by
      Farmer Mac or an affiliate.

                                                  	 	 	 
      	 

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
A

    TO

    PLEDGE
AGREEMENT

     

    
      
        
          
            
              
                
                  
                    	
                            8.

                          	
                            To
      the knowledge of the undersigned, each Eligible Security from Class A
      Eligible Member the Allowable Amount of which is included in item 2
      satisfies the following criteria on the date of this
      Certificate:  (1) Long-Term Debt to Net Utility Plant Ratio, as
      the average ratio of the most recent three full calendar years for which
      financial information is available, does not exceed 90%; (2) Modified Debt
      Service Coverage Ratio—Distribution, as the average ratio of the most
      recent three full calendar years for which financial information is
      available, is greater than or equal to 1.35; (3) Equity to Total Assets
      Ratio, as the average ratio of the most recent three full calendar years
      for which financial information is available, is greater than or equal to
      20%; and (4) the Eligible Security has a Facility Rating by National Rural
      of “4.9” or lower.

                          	 	 	 	 
	 
      	 
      	 	 	 	 
	
                            9.

                          	
                            To
      the knowledge of the undersigned, each Eligible Security from Class B
      Eligible Member the Allowable Amount of which is included in item 2
      satisfies the following criteria on the date of this
      Certificate:  (1) Equity to Total Capitalization Ratio, as the
      average ratio of the most recent three full calendar years for which
      financial information is available, is greater than or equal to 25%; (2)
      Modified Debt Service Coverage Ratio—G&T, as the average ratio of the
      most recent three full calendar years for which financial information is
      available, is greater than or equal to 1.10; (3) Equity to Total Assets
      Ratio, as the average ratio of the most recent three full calendar years
      for which financial information is available, is greater than or equal to
      10%; and (4) the Eligible Security has a Facility Rating by National Rural
      of “4.9” or lower.

                          	 	 	 	 
	 
      	 
      	 	 	 	 
	
                            10.

                          	
                            So
      far as is known to the undersigned, no Event of Default
      exists.

                          	 	 	  	 

                  

                

              

            

          

        

      

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
A

    TO

    PLEDGE
AGREEMENT

      

    All terms
which are defined in the Pledge Agreement are used herein as so
defined.

     

    Dated:  _____________________

     

    
      
        
          
            
              
                	 
      
	 
      
	 
	 
	
                        OF
      NATIONAL RURAL UTILITIES

                        COOPERATIVE
      FINANCE
CORPORATION

                      

              

            

          

        

      

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
A

    TO

    PLEDGE
AGREEMENT

      

    PLEDGED
SECURITIES ON DEPOSIT

     

    SCHEDULE
A TO OFFICERS’ CERTIFICATE

    DATED

     

    
      	
              
                Eligible Securities

              

            	 
      	
              
                Name of Issuer

              

            	 
      	
              
                Allowable Amount (Item 1)

              

            
	
              Pledged
      Securities

              (Here
      List Securities)

            	
                

            	 
      	
                

            	 
      

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
A

    TO

    PLEDGE
AGREEMENT

      

    PLEDGED
SECURITIES BEING DEPOSITED

     

    SCHEDULE
B TO OFFICERS’ CERTIFICATE

    DATED

      

    
      	
              
                Eligible Securities

              

            	 
      	
              
                Name of Issuer

              

            	 
      	
              
                Allowable Amount (Item 2)

              

            
	
              Pledged
      Securities

              (Here
      List Securities)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]