Document:

EX-10.1

 Exhibit 10.1 

FIRST DEFIANCE FINANCIAL CORP. 

FORM OF LONG TERM INCENTIVE PLAN 

PERFORMANCE SHARE UNITS AWARD AGREEMENT 

This 20__ Long Term Incentive Plan (“LTIP”) Performance Share Units Award Agreement (this “Agreement”) is made and entered
into as of [Date], (the “Grant Date”) by and between First Defiance Financial Corp. (the “Company”) and [Name] (the “Grantee”). 

WHEREAS, the Company has adopted the First Defiance Financial Corp. 2018 Equity Incentive Plan (the “Plan”) pursuant to which
Performance Share Units (“PSUs”) may be granted; and 
 WHEREAS, the Compensation Committee of the Board of Directors (the
“Committee”) has determined that it is in the best interests of the Company and its shareholders to grant the award of PSUs provided for herein. 

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows: 

1. Grant of Target Award and Performance Period. The Company hereby grants to the Grantee a target award represented as PSUs as further set forth in
Statement of Award attached hereto as Exhibit A and incorporated herein by reference (the “Target Award”). Each PSU represents the right to receive one Common Share, subject to the terms and conditions set forth in this Agreement
and the Plan. The Target Award will be determined as a percentage of base salary, and translated into PSU’s based upon the Company’s average stock price for the twenty (20) trading days prior to the approval of the LTIP by the
Committee. The actual number of Common Shares that the Grantee earns for the Performance Period will be determined by the level of achievement of the Performance Goals in accordance with Section 2, and is referred to in this Agreement as the
“Actual Award.” Capitalized terms that are used but not defined herein have the meanings ascribed to them in the Plan. 
 The
“Performance Period” shall be the period commencing on January 1, 20___, and ending on December 31, 20___ [three-year period]. 
 2.
Performance Goals and Average Compensation. 
 The Actual Award that shall vest and be payable in Common Shares to the Grantee for
the Performance Period will be determined at the end of the Performance Period based on the level of achievement of the Performance Goals listed below and the amount of the Grantee’s average base salary over the Performance Period. In addition
to the issuance of Common Shares to the Grantee upon the certification of performance by the Committee as described further below, the Grantee shall receive all dividends on the Common Shares underlying the PSUs, if any, paid prior to the
Certification Date (defined below), whether in cash or in the form of additional Company Common Shares, calculated based upon the actual dividends paid to shareholders during the Peformance Period and the Actual Award of PSUs paid to the Grantee.
All determinations of whether Performance Goals have been achieved, the adjustments attributed to changes in average base salary, the Actual Award earned by the Grantee, and all other matters related to this Section 2 shall be made by the
Committee in its sole discretion. 

 Promptly following completion of the Performance Period (and no later than sixty
(60) days following the end of the Performance Period), the Committee will review and certify in writing (a) whether, and to what extent, the Performance Goals for the Performance Period have been achieved, and (b) the number of
Common Shares that the Grantee shall earn, if any, subject to compliance with the requirements of Section 3 (the date upon which the Committee certifies performance is referred to in this Agreement as the “Certification Date”). Such
certification shall be final, conclusive and binding on the Grantee, and on all other persons, to the maximum extent permitted by law. 

Following the Certification Date, the Actual Award will be reflected on a Statement of Award, the form of which is attached hereto as
Exhibit A. 
 Peer Group: 

The “Peer Group” includes the following seventeen (17) organizations: 

 

			
	1st Source Corporation (SRCE)	  	Midland Bancorp, Inc. (MSBI)
		
	City Holding Company (CHCO)	  	MidwestOne Financial Group, Inc (MOFG)
		
	Enterprise Financial Services Corp. (EFSC)	  	Park National (PRK)
		
	First Busey (BUSE)	  	Peoples Bancorp Inc. (PEBO)
		
	First Commonwealth Financial Corp. (FCF)	  	QCR Holdings, Inc. (QCRH)
		
	German American Bancorp Inc. (GABC)	  	Republic Bancorp, Inc. (RBCA)
		
	Great Southern Bancorp, Inc. (GSBC)	  	S & T Bancorp, Inc. (STBA)
		
	Horizon Bancorp. (HBNC)	  	Univest Financial Corporation (UVSP)
		
	Lakeland Financial Corporation (LKFN)	  	

 The Committee maintains discretion to amend, modify and replace one or more members of the Peer Group when
events warrant, such as in the event that a Peer Group member ceases to be a reporting company or is acquired and in other similar circumstances. 

Performance Measures, Weightings, Goals, and Payout Calibration: 

The performance measures are: 
  

	 	●	 	 3-year average core ROAA will be weighted 50% and be evaluated relative
to Peer Group performance; and 

  

	 	●	 	 3-year relative Total Shareholder Return (TSR) will be weighted 50% and
be evaluated relative to the Peer Group. 

  
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 The table below sets forth the two performance measures, their respective weighting, how
performance on each measure will be evaluated (relative to peers or relative to plan) and the goals for threshold performance, target performance and superior performance. Achievement of the threshold performance goal will result in 50% of the
target payout, achievement of the target performance goal will result in 100% of target payout for the respective measure, and achievement of the superior performance goal will result in 150% of the target payout for the measure. Payouts for
performance between threshold and target, or between target and superior, will be interpolated. 
 Performance-Payout Table: 

 

											
	 	  	 	  	Evaluated	  	Performance Goals
	 Performance Measure
	  	Weight	  	vs.	  	Threshold	  	Target	  	Superior
	 3-year Average Core ROAA
	  	50%	  	Peers	  	25th %ile	  	50th %ile	  	75th %ile
	 3-year Total Shareholder Return (rTSR)
	  	50%	  	Peers	  	25th %ile	  	50th %ile	  	75th %ile
		  		  		  	  
	  	  
	  	  

	 Payout for Performance Level (% of Target Opportunity):
	  	50%	  	100%	  	150%
		  	  
	  	  
	  	  

 Definitions: 
  

	 	●	 	 3-year Average Core ROAA: as reported by S&P Global Market
Intelligence. The “return on average core assets” means the return on average assets adjusted for merger related costs and expenses; and 

  

	 	●	 	 Total Shareholder Return: stock price appreciation measured by comparing the base period stock price, which
utilizes the twenty (20) day moving average of the Company’s stock price prior to the start of each calendar year of the Performance Period, with the ending period, which utilizes the twenty (20) day moving average of the
Company’s stock price prior to the end of each calendar year of the Performance Period, plus reinvested dividends throughout the Performance Period. 

The Committee maintains flexibility and discretion amend, modify, terminate or otherwise adjust the Plan, as necessary, including, but not
limited to, adjusting measure definitions, if such adjustments ensure a better comparison relative to the peer group and most appropriately reflect the goals of the LTIP and the Company’s compensation philosophy. 

3. Vesting of PSUs. The PSUs are subject to forfeiture until they vest. Except as otherwise provided herein, the PSUs will vest and become
nonforfeitable on the Certification Date, subject to (a) the achievement of the minimum threshold Performance Goals for payout set forth in Section 2, and (b) the Grantee’s Continuous Service from the Grant Date through the
Certification Date. The Actual Award earned upon PSU vesting shall be determined by the Committee based on the level of achievement of the Performance Goals set forth in Section 2 and shall be rounded to the nearest whole Common Share.
“Continuous Service” means that the Grantee’s service with the Company as an Employee is not terminated. 

  
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 4. Termination of Continuous Service. 

(a) Except as otherwise expressly provided in this Agreement, if the Grantee’s Continuous Service terminates for any reason at any time
before all of his or her PSUs have vested, the Grantee’s unvested PSUs shall be automatically forfeited upon such termination of Continuous Service, and neither the Company nor any Affiliate shall have any further obligations to the Grantee
under this Agreement. 
 (b) Notwithstanding Section 4(a): 

 

	 	(i)	 If the Grantee’s Continuous Service terminates during the Performance Period as a result of the
Grantee’s death or Disability, all of the outstanding PSUs will vest in accordance with Section 3, and further provided that the amount to be paid shall be determined in the manner set forth in Section 2, as if the Grantee’s
Continuous Service had not terminated; and 

  

	 	(ii)	 If the Grantee’s Continuous Service terminates before the end of the Performance Period as a result of
Retirement, termination by the Company without Cause, or termination by the Grantee for Good Reason, a pro-rata portion of the outstanding PSUs shall vest in proportion to the number of months, including any
partial month, elapsed in the Performance Period, and further provided that the amount to be paid shall be determined in the manner set forth in Section 2. 

(c) “Good Reason” means the definition of “Good Reason” set forth in the Grantee’s employment, severance, change in
control or similar agreement, or in the absence thereof, “Good Reason” means: 
  

	 	(i)	 a material reduction in the Grantee’s rate of base salary; or 

 

	 	(ii)	 the Company changes by fifty (50) miles or more the principal location in which the Grantee is required to
perform services; or 

  

	 	(iii)	 the Company terminates, materially amends or materially restricts the Grantee’s participation in, any
equity, bonus or equity-based compensation plans or qualified or supplemental retirement plans so that, when considered in the aggregate with any substitute plan or plans, the plans in which the Grantee is participating materially fail to provide
him or her with a level of benefits provided in the aggregate by such plans prior to such termination or amendment; or 

  

	 	(iv)	 the Company materially breaches the provisions of this Agreement. 

  
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 A termination of the Grantee’s employment shall not be deemed to be for Good Reason
unless (i) the Grantee gives notice to the Company of the existence of the event or condition constituting Good Reason within thirty (30) days after such event or condition initially occurs or exists, (ii) the Company fails to cure
such event or condition within thirty (30) days after receiving such notice, and (iii) the Grantee’s termination occurs not later than ninety (90) days after such event or condition initially occurs or exists, in each case
without the Grantee’s written consent. 
 5. Effect of a Change in Control. If there is a Change in Control during the Performance Period, all
outstanding PSUs shall be earned and vest at Target Award levels for open years in the Performance period and in the manner set forth in Section 2 for any closed years in the Performance Period, on the effective date of the Change in Control
and shall be paid in cash no later than sixty (60) days following the effective date of such Change in Control. 
 6. Payment of PSUs. Payment in
respect of the PSUs earned for the Performance Period shall be made in Common Shares and shall be issued to the Grantee as soon as practicable following the later of the vesting date or the end of the Performance Period and in any event not later
than two and one-half (2-1/2) months following the end of the year in which the vesting date or the end of the Performance Period occurs. The Company shall
(a) issue and deliver to the Grantee the number of Common Shares equal to the number of vested PSUs, and (b) enter the Grantee’s name on the books of the Company as the shareholder of record with respect to the Common Shares delivered
to the Grantee. 
 7. Transferability. Subject to any exceptions set forth in this Agreement or the Plan, the PSUs or the rights relating thereto may
not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee, except by will or the laws of descent and distribution, and upon any such transfer by will or the laws of descent and distribution, the
transferee shall hold such PSUs subject to all of the terms and conditions that were applicable to the Grantee immediately prior to such transfer. 
 8.
Rights as Shareholder; Dividend Equivalents. 
 (a) The Grantee shall not have any rights of a shareholder with respect to the Common
Shares underlying the PSUs, including voting rights. Notwithstanding the foregoing, dividends on the Common Shares underlying the PSUs, if any, paid prior to the certification date, whether in cash or in the form of additional Company Common Shares,
shall accrue and be deferred and subject to forfeiture if the PSUs granted hereby do not vest with the Grantee on the Certification Date; then paid in cash or shares as applicable, subject to adjustment based upon the Actual Award paid to the
Grantee. 

  
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 (b) Upon and following the vesting of the PSUs and the issuance of Common Shares, the
Grantee shall be the record owner of the Common Shares underlying the PSUs unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting and
dividend rights). 
 9. No Right to Continued Service. Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in
any position, as an Employee, Consultant or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee’s Continuous Service at any time, with or
without Cause. 
 10. Adjustments. On any change in the number or kind of outstanding Common Shares of the Company by reason of recapitalization,
merger, consolidation, reorganization, separation, liquidation, share split, share dividend, combination of shares or any other change in the corporate structure or Common Shares of the Company, the Company, by action of the Committee, is empowered
to make such adjustment, if any, in the number and kind of PSUs subject to this Agreement as it considers appropriate for the protection of the Company and of the Grantee. 

11. Tax Liability and Withholding. 
 (a)
The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the Common Shares issued
upon the vesting of the PSUs and to take all such other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Committee may permit the Grantee to satisfy any federal, state or local tax
withholding obligation by any of the following means, or by a combination of such means: 
  

	 	(i)	 tendering a cash payment; 

 

	 	(ii)	 authorizing the Company to withhold Common Shares from the Common Shares otherwise issuable or deliverable to
the Grantee as a result of the vesting of the PSUs; provided, however, that no Common Shares shall be withheld with a value exceeding the minimum amount of tax required to be withheld by law; or 

 

	 	(iii)	 delivering to the Company previously owned and unencumbered Common Shares. 

  
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 (b) Notwithstanding any action the Company takes with respect to any or all income tax,
social insurance, payroll tax, or other tax-related withholding (“Tax-Related Items”), the ultimate liability for all
Tax-Related Items is and remains the Grantee’s responsibility and the Company (i) makes no representation or undertakings regarding the treatment of any
Tax-Related Items in connection with the grant, vesting or settlement of the PSUs or the subsequent sale of any shares, and (ii) does not commit to structure the Award to reduce or eliminate the
Grantee’s liability for Tax-Related Items. 
 12. Compliance with Law. The issuance and transfer of
Common Shares in connection with the PSUs shall be subject to compliance by the Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the
Company’s Common Shares may be listed. No Common Shares shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the
Company and its counsel. 
 13. Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to
the Secretary of the Company at the Company’s principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee’s address as shown in the
records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time. 
 14.
Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Ohio without regard to conflict of law principles. 

15. Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Committee for
review. The resolution of such dispute by the Committee shall be final and binding on the Grantee and the Company. 
 16. PSUs Subject to Plan. The
PSUs are in all respects subject to the terms, conditions and provisions of the Agreement and the Plan. 
 17. Successors and Assigns. The Company may
assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon
the Grantee and the Grantee’s beneficiaries, executors, administrators and the person(s) to whom the PSUs may be transferred by will or the laws of descent or distribution. 

18. Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of
any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law. 

  
 -7- 

 19. Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled or
terminated by the Company at any time, in its discretion. The grant of the PSUs in this Agreement does not create any contractual right or other right to receive any PSUs or other Awards in the future. Future Awards, if any, will be at the sole
discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee’s employment with the Company. 

20. Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel the PSUs, prospectively or retroactively; provided that, no
such amendment shall adversely affect the Grantee’s material rights under this Agreement without the Grantee’s consent. 
 21. Section 409A.
This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under
Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for
all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with Section 409A of the Code. 

22. Non-solicitation Covenants. By accepting this Agreement and the Target Award provided for herein, the
Grantee agrees that during his or her employment with the Company and/or its subsidiaries and affiliates, including but not limited to Home Savings Bank, and for a period of one year after such employment ceases, either voluntarily or involuntary
for any reason, he or she will not, either directly or indirectly: 
 (a) Solicit, encourage, or induce any person employed by the Company,
or attempt to solicit, encourage or induce any person employed by the Company, to terminate his or her employment with the Company or to seek or accept employment with any other person or entity; 

(b) Contact or attempt to contact any customer or prospective customer of the Company for whom the Grantee performed any services or had any
direct or indirect business contact for the purposes of identifying his or her new association or his or her change of employment or current affiliation; 

(c) Contact any customer of the Company for whom the Grantee performed any services or had any direct or indirect business contact for the
purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers to obtain any product or service offered by the Company from any person or entity other than the Company; 

(d) Contact any customer or prospective customer of the Company whose identity or other customer specific information the Grantee obtained or
gained access to as an employee of Company for the purpose of soliciting, influencing, enticing, attempting to divert, or inducing any such customers or prospective customers to obtain any product or service provided by the Company from any person
or entity other than the Company; 

  
 -8- 

 (e) Accept or provide assistance in the accepting of business from any customers or any
prospective customers of the Company for whom the Grantee performed any services or had any direct or indirect business contact, or whose identity or other customer specific information the Grantee obtained or gained access to as an employee of the
Company. 
 Notwithstanding the foregoing non-solicitation provisions of this Agreement, if the
Grantee separates employment within one (1) year following a Change in Control that is not pursuant to a transaction approved by the Company’s Board of Directors, then the Grantee’s obligations will cease as of the date of his or her
employment termination. 
 23. No Impact on Other Benefits. Except as otherwise provided in a Grantee’s employment agreement, the value of the
Grantee’s PSUs is not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit. 

24. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute
one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and
pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature. 
 25.
Acceptance. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read and understands the terms and provisions thereof, and accepts the PSUs subject to all of the terms and conditions of the Plan
and this Agreement. The Grantee acknowledges that there may be adverse tax consequences upon the vesting or settlement of the PSUs or disposition of the underlying shares and that the Grantee has been advised to consult a tax advisor prior to such
vesting, settlement or disposition. 
 26. Clawback. Notwithstanding any other provisions in this Agreement or the Plan, all payments made to the
Grantee pursuant to this Agreement shall be subject to recovery, deduction or clawback (collectively, “Clawback”) under any law, regulation, stock exchange listing requirement requiring Clawback and under the Company’s Incentive
Compensation Clawback Policy, as may be amended from time to time. 
 [Signature Page Follows] 

  
 -9- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

	
	First Defiance Financial Corp.
	
	  
 Name: [Name]

	Title: [Title]
	
	  
 Name: [Name]

  
 -10- 

 EXHIBIT A 

20     LONG TERM INCENTIVE PLAN 

STATEMENT OF AWARD 
 Grantee’s
Name and Address: 
 [Name] 
 [Address] 

Target Award:
                            Performance Share UnitsExhibit 10.1

 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

REVOLVING LINE OF CREDIT

PROMISSORY NOTE AND LOAN AGREEMENT

 

This Revolving
Line of Credit Promissory Note and Loan Agreement (“Note”) is entered into as of February 25, 2020, between
the Lender and Borrower identified below.

 

		1.	PROMISE TO PAY. For value received the undersigned (collectively, “Borrower”)
as principals, jointly and severally, promise to pay to the order of Farm Credit West, FLCA (“Lender”),
a corporation organized under the laws of the United States of America, with its office at 2031 Knoll Drive, Ventura, CA 93003
or at such other place as may be designated in writing by Lender, the principal sum of $15,000,000.00 (Fifteen Million
Dollars and Zero Cents) (“Maximum Loan Amount” or “Commitment”), or so much of that sum as
may be advanced or re-advanced by Lender from time to time, together with interest on the unpaid principal balance as specified
in Section 3 below. “Indebtedness” (also called a “Loan” or “Account”
herein) means principal, interest and all other sums owed hereunder of whatever kind evidenced by this Note. All Indebtedness owed
shall be payable by Borrower only in lawful money of the United States of America.

 

		1.1	REVOLVING LINE OF CREDIT. Lender shall make available to Borrower a revolving line of credit in
a principal amount not to exceed at any one time the Maximum Loan Amount. Subject to the provisions of this Note, as amounts drawn
under the revolving line of credit are repaid, they may be re-borrowed from time to time during the Draw Period.

 

		1.2	DRAW PERIOD. Subject to the provisions of this Note, until April 1, 2023 (“Draw
Period”), Borrower may draw Loan funds hereunder; and Lender shall make advances of Loan funds to Borrower upon Borrower’s
request. The Draw Period may be terminated by Borrower at any time by written notice to Lender.

 

1.2.1 COMMITMENT
EXPIRATION. Notwithstanding the Draw Period or Maturity Date, the Commitment shall expire as of the Commitment Expiration Date
unless extended by Lender hereunder. Upon the Commitment Expiration Date, Borrower’s right to draw any undisbursed funds
under the Commitment terminates with the remaining outstanding balance under the Commitment payable according to the terms of this
Note unless Lender, at is option, declares the outstanding balance under the Commitment immediately due and payable. The Commitment
Expiration Date shall mean July 1, 2020 and each year thereafter the date established by Lender which shall be no later
than the anniversary date of the original Commitment Expiration Date. If Lender, in its sole discretion, elects to extend the Commitment,
Lender shall notify Borrower of the next Commitment Expiration Date and Borrower agrees that no additional consents or amendments
to this Note shall be required for any such extension.

	 	 

		1.3	USE OF DRAW FUNDS. Borrower represents that any funds drawn hereunder will be used primarily
for business and agricultural purposes and not for personal, family or household purposes. Borrower acknowledges that Lender has
relied upon this representation in establishing this revolving line of credit and in making any advance hereunder.

 

		1.4	PROCEDURE FOR DRAWING FUNDS. All draws requested hereunder shall comply with applicable procedures
established by Lender from time to time. Lender’s records shall be conclusive evidence of draw requests. Each advance of
Loan funds hereunder shall be made upon a verbal, written, or telecopied request from Borrower to Lender. Each such request shall
specify the date of the requested draw and the amount thereof. Upon fulfillment of the applicable conditions for making a draw,
Lender shall disburse the amount of the requested draw to Borrower in such manner as Lender and Borrower may from time to time
agree. Lender may rely on any verbal request for a draw as fully as if such request were in writing.

 

		1.5	ONGOING REQUIREMENTS AND REPRESENTATIONS DURING DRAW PERIOD. At the time of any draw request
or draw by Borrower or advance of Loan funds by Lender, Borrower shall not be in default under this Note as described in Section
5 below. Any request for or acceptance of a draw by Borrower constitutes an ongoing representation by Borrower that Borrower continues
to comply with the conditions and requirements set forth in this Note, the Security Instrument or any other Loan Document, and
that title to the Collateral, each as defined in Section 9 below, has not been “transferred”, as defined in Section
23 below, without Lender’s written consent. If a default occurs under Section 5 below, one of Lender’s remedies includes
Lender’s right to immediately terminate Borrower’s right to make draws hereunder, with or without notice to Borrower.

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 1
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		2.	PAYMENTS. Principal and interest shall be payable to Lender as follows:

 

		2.1	During the Draw Period.

Interest Only: Borrower shall
pay on April 1, 2020, and Monthly thereafter, (the “Interest Repayment Frequency”) for 37 Monthly
periods, all interest then accrued during the billing period based on the daily principal balance.

 

		2.2	During the Amortized Balance Period. Provided that the Borrower is in compliance with all requirements
of this Note, including all provisions of Section 1 hereof, then on the first day after the end of the Draw Period, the outstanding
principal balance then due (“Amortized Balance”) shall be fully amortized in accordance with the terms hereof
over the remaining term of the Note (“Amortized Balance Period”). Provided Borrower is current on all scheduled
payments due under the Draw Period, any interest accrued and unpaid since the last scheduled payment under the Draw Period shall
be added to the first installment due during the Amortized Balance Period.

 

Borrower shall make equally amortized
payments of principal and interest based on the Amortized Balance beginning on May 1, 2023 and Quarterly thereafter
until February 1, 2043 (“Maturity Date”), at which time the entire remaining principal balance, together
with all accrued interest and all other obligations evidenced by the Note shall be fully due and payable.

 

Notwithstanding the foregoing,
if any default under this Note has occurred or Borrower is not in compliance with all requirements of this Note at the end of the
Draw Period, Lender may, at its option, elect not to amortize the Loan over the Amortized Balance Period as described above but
Lender may elect instead to require that Loan be paid in full and/or Lender may otherwise exercise its rights and remedies arising
from the default.

 

At Lender’s option, a change
in the interest rate or an advance may either increase or decrease one or more of the following: the amount of each installment
due, the amount of the final installment (resulting in a final installment due at the Maturity Date which may be greater than any
previous installments) or the total number of installments due. Lender may apply any payment received from or on behalf of Borrower
and any proceeds of Collateral, as defined herein, to principal, interest, or any part of the Indebtedness as Lender, in its sole
discretion, may choose. Any payment received by Lender after Lender has closed its books for the day will be applied on the next
business day.

 

		2.3	Repayment Upon Early Termination of the Draw Period. If Borrower terminates the Draw Period earlier
than the Draw Period end date (“Early Termination”), and the Note is not in default (or Lender elects not to
exercise its rights and remedies arising from the default), the Indebtedness evidenced by this Note (the “Outstanding
Obligation”) will be immediately re-scheduled and repaid as follows:

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 2
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		2.3.1	The Outstanding Obligation will be immediately equally amortized over the remaining term of the
Note. The repayment frequency (i.e. monthly, annually or other) will be the same frequency as that established for the Amortized
Balance Period described above.

 

If the Loan is re-scheduled due
to an Early Termination, all other terms and conditions of the Note shall remain in full force and effect, including the provisions
of Section 2.4 below.

 

If the Note is in default at the
time Borrower elects an Early Termination, Lender shall have the right to accelerate the Loan and/or otherwise exercise its rights
and remedies as described in Section 5.1 rather than re-scheduling the Loan.

 

		2.4	INSTALLMENTS. Lender may apply to the Loan any payment received from Borrower and any proceeds
of Collateral in such manner as Lender, in its sole discretion, may choose. Any payment received by Lender after Lender has closed
its books for the day will be applied on the next business day.

 

		3.	INTEREST.

 

		3.1	INITIAL INTEREST RATE. The interest rate applicable to the Note is a Variable Interest Rate (“Variable
Interest Rate”) and shall change in accordance with Sections 3.2 through 3.3 below. Interest shall accrue at the Variable
Interest Rate as established by Lender for the interest rate group to which this Note is assigned.

 

Interest will be charged on the
entire unpaid principal balance of this Note, including payments not made when due and any other sums owing hereunder. Interest
charged hereunder, including any acceleration interest rate described in Section 5.2 below, all late charges, default interest
and other charges described in Section 4 below, and all other amounts charged hereunder, shall not be limited by the laws of any
state, including any state laws relating to a legal rate or other interest rate, but shall be governed solely by applicable federal
laws.

 

Interest will be calculated on
the basis of a 30-day month and a 360-day year. Interest charges will begin on the date Lender disburses principal and continue
until the Indebtedness is paid in full with interest. On the date Lender disburses the Loan, interest will be at an annual rate
of 3.70% (“Initial Interest Rate”).

 

		3.2	CHANGE IN INTEREST RATE AND INTEREST RATE GROUP. The Variable Interest Rate applicable to this
Note may be adjusted automatically as of the first day of any month to the rate then made applicable to the Note’s assigned
interest rate group under the provisions of Lender's Variable Interest Rate plan in effect at that time.

 

In adjusting the rate, Lender
considers certain standard factors in the plan, including but not limited to, changes in its costs of funds, operating expenses,
earnings requirements to meet certain capital objectives, credit risk factors, and the competitive environment, which factors may
change during the term of the Note.

 

Borrower understands and agrees
that (a) the interest rate group to which this Note is assigned may be changed at any time to any other interest rate group based
on Lender's evaluation of the change in Borrower's credit quality, quality of collateral, costs of servicing the loan, and other
factors which are set forth in Lender's interest rate plan in effect at that time; and (b) the interest rate group may be automatically
adjusted to the highest interest rate group if a default shall occur under this Note, the Loan Documents or under any other note
or agreement between Borrower and Lender.

 

		3.3	NOTICE. If Lender changes Borrower’s Variable Interest Rate, Lender will give Borrower notice
of such rate change to the extent required by the then applicable law.

 

		4.	LATE CHARGES FOR OVERDUE PAYMENTS. Any installment of principal or interest not received
by Lender by the end of the fifteenth (15th) calendar day after the date it is due shall bear interest from such due
date until such amount is fully paid at the interest rate in effect at that time, as may be increased or decreased based on the
interest rate group assigned by Lender to Borrower, plus 4.00% per annum.

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 3
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		5.	DEFAULT. Borrower is in default on this Note under any one or more of the following circumstances:
(a) Borrower or any guarantor fails to pay when due principal, interest or other sums as set forth in this Note or any other Loan
Document; (b) Borrower is declared to be in default on any other loan or obligation of Borrower to Lender or in which Lender has
an interest, or Borrower or any guarantor breaches any term, condition or representation in this Note or in any other Loan Document
or in connection with any other loan of this Lender, or any other lender, including but not limited to any other Farm Credit lender;
(c) any of Borrower's or guarantor’s representations to this or any other lender in connection with any loan are materially
false or misleading; (d) Lender determines that Borrower or any guarantor is unable to repay the sums owed Lender under this Note
as agreed, or Lender in good faith otherwise deems itself insecure; (e) Lender's reasonable determination that a material adverse
change has occurred in the financial condition of Borrower or any guarantor or in the value of the Collateral; (f) Borrower's death,
dissolution, incapacity or termination of existence; (g) Borrower's or guarantor’s insolvency, business failure, application
for or consent to appointment of a receiver/custodian or trustee for itself or any of its assets, assignment to an agent authorized
to liquidate any substantial amount of assets, assignment for the benefit of creditors by, or commencement of any proceeding under
any bankruptcy or insolvency law by or against Borrower, or any guarantor, endorser, or surety for Borrower; (h) any judgment,
writ, levy, lien, attachment, notice of tax lien, tax lien, or similar process is entered against Borrower, any guarantor or any
of Borrower's or any of guarantor's properties and is not vacated, bonded, or stayed to the satisfaction of Lender; (i) a default
occurs under any guaranty given to Lender in connection with this Note, or any guarantor shall purport to terminate, repudiate
or contest any such guaranty; any guarantor who is a natural person shall die or becomes incapacitated; or any guarantor that is
not a natural person shall be dissolved or terminated; or (j) Borrower sells, leases, encumbers, transfers, or enters into any
agreement for the sale, lease, encumbrance, transfer or nonuse of any water, water rights or “Water Asset”, as defined
in any deed of trust, mortgage, security agreement or other agreement relating to the pledge of water or water rights; or (k) if
Borrower or any guarantor is an entity other than a natural person: (i) a transfer of a beneficial interest of such entity (ii)
a withdrawal or removal of a general partner or manager if such entity is partnership or limited liability company, as applicable;
(iii) a transfer in the aggregate of more than 25% of the voting stock if such entity is a corporation or of more than 25% of the
partnership interests or membership interests if such entity is a partnership, limited liability company or similar entity.

 

		5.1	REMEDIES. If a default hereunder shall occur, Lender shall have all rights and remedies under this
Note or any other Loan Document, or accorded by law or at equity, including the right to foreclose on any and all Collateral and
to exercise any or all of the rights of a mortgagee, trust deed beneficiary, or secured party pursuant to applicable laws, rules,
ordinances, permits and regulations of all local, regional, county, state and federal governmental authorities (“Applicable
Laws”).. One of Lender’s remedies hereunder shall include Lender’s right to immediately terminate Borrower’s
right to make draws, with or without notice to Borrower. All rights and remedies of Lender may be exercised at any time by Lender
and from time to time after the occurrence of a default. All rights and remedies of Lender hereunder and any other Loan Document
are cumulative and not exclusive and shall be in addition to any other rights or remedies provided by law or equity. Lender may
enforce any security interest or lien pursuant to any Loan Document in such manner and order, as to all or any part of the Collateral
as Lender, in its sole judgment, deems appropriate. Borrower, to the extent Borrower can, waives any and all rights, obligations,
or defenses now or hereafter established by law relating to the foregoing. The mortgage, deed of trust or other Security Instrument
provides that advances made by Lender shall become a part of the principal evidenced by this Note, and also states additional conditions
under which the entire Note may be accelerated and become immediately due and payable and will be subject to interest and acceleration
interest

 

		5.2	ACCELERATION AND INTEREST UPON ACCELERATION. On Borrower's default, and at Lender's option, all
unpaid principal, including amounts advanced for taxes, insurance, and other expenses herein, accrued unpaid interest and amounts
charged in Section 4, shall become immediately due and payable without presentment, demand, notice of non-payment, or protest.
Interest on said accelerated amount shall be 4.00% per annum above the interest rate provided for in Section 3 above.

 

		5.3	WAIVER. Any delay, failure or discontinuance of Lender in exercising any right or remedy shall
not waive that right or remedy or any other right or remedy. Any explicit waiver of default by Lender must be in writing and signed
by Lender. No waiver of default by Lender shall operate as a waiver of any other default or of the same default on a future occasion.

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 4
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		6.	PREPAYMENT; REAMORTIZATION; REFINANCE; INTEREST RATE CONVERSION. A payment, in any amount,
made in advance of the scheduled payment date is a “prepayment.” If Borrower, in making a prepayment, intends
the prepayment to be applied to reduce the principal balance of the Note, Borrower must so inform Lender in writing accompanying
the prepayment; however, Lender may apply all prepayments in such manner as Lender, in its sole discretion, may determine unless
otherwise agreed in writing. Borrower may make a full or partial prepayment on any business day without paying a prepayment fee.

 

Upon the
making of a partial prepayment, Borrower may request to have the amount of future installments reamortized over the remaining term
of the Loan, but only if Borrower so notifies Lender at the time Borrower makes the partial prepayment and only if, upon Lender’s
approval of the request, which approval shall be in Lender’s sole discretion, Borrower pays to Lender any fees and costs
that Lender may charge for such reamortization.

 

Lender may from time to time offer other loan or
interest rate products for which Borrower qualifies. Borrower acknowledges that it may not refinance or convert this Note to another
loan or interest rate product with Lender unless Borrower qualifies for such loan or product as determined by Lender in its sole
discretion and pays to Lender any fees and costs that Lender may charge for such refinance or conversion.

 

		7.	BORROWER'S REPRESENTATIONS. In addition to the representations described in other Loan Documents,
Borrower makes the following representations to Lender which remain in effect until all Indebtedness is repaid in full:

 

	 	7.1	NO DEFAULT. Borrower has not received any notification of default under any of its agreements with third parties that might impair the operations or financial condition of Borrower.
	 	 	 
	 	7.2	LEGAL ENTITY WARRANTY AND CERTIFICATION.  If Borrower is a legal entity, Borrower (and any person signing this Agreement in a representative capacity on behalf of Borrower) represents that Borrower is duly constituted under and conducting its business operations in compliance with all Applicable Laws and in good standing; that Borrower has the authority, and appropriate authorization to enter into this Agreement, all Security Instruments and any other Loan Document in connection with any Loan; that when executed this Agreement, all Security Instruments and any other Loan Document shall be valid and legally binding on Borrower.  If the Borrower is a trust, each trustee executing this Agreement on behalf of the trust also represents, that this Agreement, all Security Instruments and other Loan Documents are being executed by all the currently acting trustees of the trust and that the trust has not been revoked, modified, or amended in any manner which would cause any of the foregoing to be incorrect.
	 	 	 
	 	7.3	COMPLIANCE WITH LOAN TERMS.  Borrower is in compliance with, all terms of all Borrower's other loans and obligations to all other creditors if any, and all other loans and obligations to Lender.
	 	 	 
	 	7.4	SOLVENCY.  Borrower has sufficient capital to carry on the business and is able to pay debts as they mature, and Borrower is paying such debts.  Borrower owns good and marketable title to all property reflected in the financial information provided to Lender, the fair market value of which exceeds the dollar amount required to pay Borrower's debts.
	 	 	 
	 	7.5	TAXES. Borrower has filed all tax returns required to be filed and has paid all taxes, assessments, and governmental charges and levies thereon, including interest and penalties.
	 	 	 
	 	7.6	
        INFORMATION. All information,
including, financial statements and profit and loss information furnished by Borrower to Lender are accurate and complete; there
has not been any material adverse change in the financial condition of Borrower since the date of the last financial statement
provided; Borrower has no material liabilities, fixed or contingent, which are not fully shown in said financial statements as
of the date thereof. 

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 5
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		8.	SPECIAL LOAN CONDITIONS, COVENANTS AND REQUIREMENTS.  In addition to any requirements described
in other Loan Documents, Borrower covenants and agrees with Lender as follows:

 

	 	8.1	FINANCIAL PERFORMANCE
	 	 	 
	 	 	8.1.1	No other financial performance covenants are imposed at this time unless provided elsewhere herein or in other Loan Documents.
	 	 	 	 
	 	 	8.1.2	MINIMUM DEBT SERVICE COVERAGE RATIO. Borrower shall maintain at all times a debt service coverage ratio, as determined in Lender's sole discretion, greater than or equal to 1.25:1 when measured with the October 31 SEC Form 10-K financial statements for Limoneira Company, and annually thereafter during the term on a consolidated basis. Debt Service Coverage Ratio means at any date of determination (i) EBITDA divided by (ii) the sum of (A) the current portion of long-term liabilities paid or scheduled to be paid during the twelve months ending of such date plus (B) interest expense for the preceding twelve months. EBITDA means the sum of (a) net income after taxes and before extraordinary items in accordance with generally accepted accounting principles ("GAAP"), plus (b) interest expense deducted in determining such net income, plus (c) amortization and depreciation expense deducted in determining such net income, plus (d) income tax expense deducted in determining such net income.
	 	 	 
	 	8.2	INSURANCE.  Borrower shall provide, maintain and deliver to Lender, fire and extended coverage, flood and any and all other types of insurance in terms and amounts as may be required by law or Lender from time to time, with loss payable endorsements solely in favor of Lender or, for real property secured loans, naming Lender as mortgagee.
	 	 	 
	 	8.3	
        FINANCIAL INFORMATION. At Lender's
        request, Borrower shall provide to Lender financial information in a form acceptable to Lender, including, when so required, a
        current balance sheet and income statement. In the case of multiple Borrowers, financial information must be provided for each
        Borrower as requested by Lender.

         

        Financial Information shall be provided
        as described below:

	 	 	 
	 	 	8.3.1            	Financial information shall be provided at such times during the term of this Agreement as Lender may request.
	 	 	 	 
	 	 	8.3.2            	REPORTING - OTHER.  As soon as possible, but no later than 90 days after October 31, Borrower is to provide the following financial information: an annual budget and cash flow projection or operating plan.
	 	 	 	 
	 	 	8.3.3            	REPORTING - SELF-PREPARED STATEMENTS. As soon as possible, but no later than 60 days after January 31, April 30 and July 31, quarterly Self-prepared SEC Form 10-Q Financial Statements, unless such statements are made readily accessible to Lender for download from Borrowers' website or other publicly available source., for Limoneira Company.
	 	 	 	 
	 	 	8.3.4            	REPORTING - OTHER.  As soon as possible, but no later than 90 days after October 31, Borrower is to provide the following financial information: SEC form 10-K financial statements, unless such statements are made readily accessible to Lender for download from Borrower's website or other publicly available sources.
	 	 
	 	8.4     	ENVIRONMENTAL.  Borrower shall comply with the following additional requirements
	 	 	 
	 	 	8.4.1   	No other environmental requirements are imposed at this time unless provided elsewhere herein or in other Loan Documents.
	 	 	 
	 	8.5        	NEGATIVE COVENANTS.  Borrower will not take any of the following actions without the prior written approval of Lender during the term of this Agreement and until all Loans are paid in full:

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 6
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

	 	 	8.5.1	Mortgage, pledge, lease for a period exceeding one year or otherwise make or allow the filing of a lien on any Collateral.
	 	 	 	 
	 	 	8.5.2  	Become a guarantor or surety on or otherwise become liable for, the debts or obligations of any third party person, or any entity.
	 	 	 	 
	 	 	8.5.3 	Obtain credit or loans other than trade credit customary in Borrower's business.
	 	 	 	 
	 	 	8.5.4  	Dispose of all or a substantial portion of Borrower's business assets by sale, transfer, lease, gift, abandonment or otherwise, except for sales of inventory in the ordinary course of business.
	 	 	 	 
	 	 	8.5.5     	Sell Borrower's business, abandon or cease or materially change its business operations, or merge or consolidate with any third party or entity.
	 	 	 	 
	 	8.6    	
        CONDITIONS PRECEDENT. Lender’s
        obligation to make the initial Loan and any other Loans thereafter, if any, is subject to the satisfaction, in Lender’s sole
        discretion, of the following conditions precedent:

         

        8.6.1    Lender
        shall have received evidence that all Loan Documents have been duly authorized and executed;

         

        8.6.2    Lender
        shall have received evidence, including without limitation, any title insurance and/ or endorsements, estoppel certificates or
        subordination agreements, that may be required by Lender, that the liens granted to Lender under the Security Instruments are enforceable
        and with the lien priority required by Lender;

         

        8.6.3    All
        representations and warranties of any party to the Loan Documents, other than Lender, are true and correct; and

         

        8.6.4    Lender
        has received all other documents, certificates, approvals, information, and fees requested by Lender.

	 	 	 

		9.	SECURITY. This is a secured Note. “Collateral” means all real and personal
property securing this Note. “Security Instrument” means any deed of trust, mortgage, security agreement or
other Loan Document granting Lender a security interest in, any real or personal property as security for this Note. The terms
of all Security Instruments securing this Note are hereby incorporated by reference as a part of this Note. “Loan Document”
means this Note, and any loan agreement, guaranty, Security Instrument, and any and all other writings or agreements executed in
connection with the loan or this Note, and all amendments, modifications, and restatements thereof.

 

The Collateral for this Note
is as follows:

 

	 	 	i.	By signing below, the undersigned individually and collectively represent that there have been
NO CHANGES in the ownership, condition, or location of any collateral previously pledged to Lender, which is also pledged as Collateral
for this Note.

	 	 	ii.	This Note is secured by a real estate Deed of Trust recorded in counterpart, but constitute only
one document, on 09/30/2005, as Instrument # 2005082030 and Instrument # 2005082031, as supplemented or amended from time to time,
in the official records of San Luis Obispo County, State of California.

 

		10.	AGENCY. Each Borrower hereby appoints each of the other undersigned as his, her or its agent
for performance of the within obligations until written notice of termination of such agency is actually received by Lender. This
Agency shall include, but not be limited to, the authority to vote all stock or participation certificates required by Lender’s
bylaws, request and receive Loan disbursements, and receive on behalf of all the undersigned any check, payment, document or notice
given in connection with this Note or any Loan.

 

		11.	INSPECTION AND ACCESS. While this Note is in effect Borrower will: (a) at Lender's request, furnish information to Lender
relating to Borrower's business and financial affairs, (b) permit Lender to examine Borrower's books and records; and (c) allow
Lender to inspect and appraise Lender's Collateral at reasonable times and places.

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 7
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		12.	REQUIRED ACTIONS. While this Note is in effect Borrower will: (a) maintain all other loans
with Lender in a current status; (b) comply with all terms of all Loan Documents executed in connection with this Note; and (c)
execute, deliver, file and or record such documents, or take such other actions, as may be reasonably required by Lender, or to
assure the enforceability of the Indebtedness, Note or any Security Instrument, Loan Document, or to otherwise protect or enforce
the rights of Lender thereunder.

 

		13.	TRANSFER BY LENDER. Lender may sell, transfer or assign this Agreement or any portion thereof,
and deliver to the transferee(s) ("Holder") all or any portion of the Collateral, and the Holder shall thereupon
become vested with all rights herein given to Lender with respect thereto and at such time “Lender” hereunder shall
include the "Holder"; and Lender shall thereafter be fully discharged from any liability to Borrower, but Lender shall
retain all rights hereby with respect to any Collateral not so transferred, sold or assigned.

 

		14.	FEES AND CHARGES OF ATTORNEYS AND OTHERS.  If Lender utilizes the services of attorneys,
accountants, appraisers, consultants, or other professional or outside assistance, including the services of in-house counsel or
any other professional who is an employee of Lender, the reasonable amount of fees, costs and expenses (“Expenses”)
incurred by Lender to utilize such persons in connection with any of the following, or as indicated elsewhere in this Note shall
be payable by Borrower on demand and Lender may, at its option, add the amount of such Expenses to any portion of the Note, plus
an appropriate amount of stock or participation certificates as required by federal law or regulation or Lender’s bylaws,
and charge interest on such amount at the interest rate applicable to such portion of the Note:
	 	 	 

		A.	The preparation, modification or enforcement of this Note and any other agreement or Loan Document
related to the Note or to the Collateral;

		B.	Advising Lender concerning its rights and obligations under this Note and any other agreement or
Loan Document related to the Note, or to the Collateral, including advising Lender with regard to the extent of Lender’s
rights, if any, under any applicable provisions of the Farm Credit Act of 1971, as amended, Farm Credit Administration regulations,
any policy or program of Lender, or any other Applicable Laws;

		C.	Any litigation, dispute, proceeding, or action (whether terminated or dismissed prior to judgment,
reduced to judgment or otherwise finally resolved), and whether instituted by Lender, Borrower or any other person, relating to
this Note, any other Loan Document, the Collateral or Borrower’s affairs;

		D.	The furtherance of Lender’s interest in any bankruptcy, insolvency, or reorganization case
or proceeding instituted by or against Borrower, including any steps to (i) modify or terminate the automatic stay, (ii) prohibit
or condition Borrower’s use of cash collateral, (iii) object to any disclosure statement or plan, (iv) propose or confirm
a plan, and (v) prosecute or defend adversary proceedings or contested matters, and take or defend examinations or discovery, whether
related to any adversary proceeding or contested matter, whether terminated or dismissed prior to judgment, reduced to judgment
or otherwise finally resolved;

		E.	The inspection, verification, protection, collection, processing, or disposition of the Collateral;
and

		F.	Any of the type of Expenses incurred by Lender in connection with any guaranty of the Note.

 

The Expenses shall be in addition
to those set forth in any Security Instrument or other Loan Document between Lender and Borrower.

 

		15.	TRANSACTION SUMMARY. All disbursements and repayments of Indebtedness shall be posted on
Lender's accounting records. Periodically, Lender shall send Borrower a transaction summary, statement or a similar loan accounting.
If Borrower fails to object to the accounting in writing within 30 days of its mailing by Lender, Borrower shall have waived any
right to object to the accuracy of the accounting and the accounting may be admitted into evidence by Lender for the purpose of
establishing the balance due Lender in any legal proceeding between the parties.

 

		16.	NOTICES. Borrower shall promptly give written notice to Lender of: (a) any enforcement action
brought against Borrower by any governmental regulatory body or law enforcement authority or any dispute between Borrower and any
such authority or body; (b) any pending or threatened litigation or court proceeding against Borrower; (c) the death or disability
of any Borrower or guarantor; (d) any material adverse change in Borrower's business or financial condition; (e) the occurrence
of any default or any event that with a lapse of time or the giving of notice or both would become a default under any obligation
of Borrower to Lender or in which Lender has an interest; (f) any change in management or ownership of Borrower’s business
or operations; (g) any default on loans or credit arrangements with any other creditors; (h) any location change or new location
of Borrower’s office or site of operation; (i) any change to an out of state location for any Collateral; and (j) any restriction,
suspension, or other change in any permit(s), license(s) or authority(ies) required to conduct Borrower's business.

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 8
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

16.1
Any notice under this Note or any other Loan Documents shall be in writing and delivered to the address below if to Borrower and
to the address specified in Section 1 hereof if to Lender. Any notice shall be deemed effective upon on the earlier of: (a) actual
receipt of the intended recipient, or (b) upon delivery, if delivered in person or by any nationally recognized courier service
that provides proof of delivery, or (c) four business days after deposit in the U.S. mail, postage prepaid, whether by first class
mail or by certified mail. Either party may change its address for purposes of receiving notice upon delivery to the other party
of a change of address in accordance with the terms hereof. Borrower agrees to keep Lender informed of Borrower’s current
address for notice purposes.

 

		17.	LOAN CHARGES. To the extent any interest or other loan charges collected or to be collected
in connection with this Note exceed the maximum amount permitted by law, then: (a) any such loan charge shall be reduced by the
amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected which exceeded permitted limits
will be refunded to Borrower, without interest thereon. Lender may choose to make this refund by reducing the principal Borrower
owes under this Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as
a partial prepayment.

 

		18.	DISCLOSURE AND INQUIRIES. By signing this Note, Borrower agrees that Lender may disclose
financial information to other Farm Credit System institutions. Borrower further authorizes Lender from time to time, to make such
inquiries and gather such information as Lender deems necessary and reasonable to administer the Loan. Lender is also authorized
from time to time to make credit inquiries, verify credit, verify employment, and obtain credit agency reports regarding Borrower
and Borrower’s business.

 

		19.	BORROWER'S AUTHORITY AND ADDITIONAL REPRESENTATIONS. By signing this Note, Borrower represents
that the terms of this Note and any Security Instrument do not conflict with terms of any other contract(s) of Borrower, that Borrower's
representations in this Note and any other Loan Documents are true and accurate, and that there is no pending lawsuit, tax claim,
investigation or other dispute against or threatened against Borrower or the Collateral that might impair Borrower's financial
condition or ability to continue business or the Collateral and that Borrower is qualified and/or licensed to do business in all
states requiring Borrower to be so qualified or licensed and is in compliance with all Applicable Laws.

 

		20.	INDEMNITY. Borrower indemnifies and agrees to hold Lender harmless from any losses, claims,
liabilities, damages and related expenses, including reasonable attorneys’ fees and costs, incurred by or asserted against
Lender that arise from: (1) the release, threatened release, discharge, manufacture, use, storage, transportation or presence of
any hazardous substance in connection with the business of Borrower or on any real property owned or occupied by Borrower, whether
pledged as security for this Note or not; (2) the execution of this Agreement and any other Loan Documents or the transactions
contemplated thereunder or (3) the Indebtedness or use of proceeds therefrom or (4) the unauthorized disbursement of funds or misappropriation
of proceeds under this Agreement by any employee, agent, independent contractor, affiliate or guarantor of Borrower. The indemnity
covers Lender and its affiliates and their officers, directors, agents, and attorneys of Lender and its affiliates and extends
to attorneys' fees and other costs and expenses incurred by Lender and its affiliates in connection with the foregoing. The term
 “hazardous substance” shall mean any material or substance which is now or hereafter considered hazardous or
toxic under any Applicable Laws. NOTWITHSTANDING ANY OTHER PROVISION OF THIS NOTE OR THE OTHER LOAN DOCUMENTS, THIS INDEMNITY SHALL
SURVIVE REPAYMENT OF THE LOAN.

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 9
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		21.	OBLIGATIONS OF PERSONS UNDER THIS NOTE. The liability of each Borrower executing this Note
shall be that of co-maker and not that of an endorser, guarantor or accommodation party and shall be joint and several. The liability
of each Borrower shall be that of co-maker and not that of an endorser, guarantor or accommodation party (collectively “Surety”)
and shall be joint and several. To the extent any Borrower is deemed to be a Surety, each such Surety waives any right to require
Lender to (a) proceed against Borrower, or any other Surety or any other third party; (b) proceed against or exhaust any Collateral
or other support for the Indebtedness granted by Borrower, Surety, or any other Surety or third party; or (c) pursue any other
remedy in Lender’s power whatsoever. Surety waives any defense arising by reason of (i) any disability or other defense of
Borrower; (ii) the cessation from any cause whatsoever of the liability of Borrower for the Indebtedness for any reason other than
payment in full and final satisfaction; or (iii) the non-perfection of any Collateral for the Indebtedness.. Surety shall have
no right of subrogation to and waives any right to enforce any remedy which Lender now has or may hereafter have against Borrower,
and waives any benefit of, any right to participate in, and any right to direct the application of any Collateral for the Indebtedness,
now or hereafter held by Lender, whether any of the foregoing rights arise in equity, at law or by contract. Without limiting the
generality of the foregoing, Surety specifically waives all rights and defenses arising out of an election of remedies by Lender,
even though that election of remedies, such as non-judicial foreclosure with respect to Collateral, has destroyed Surety’s
rights of subrogation and reimbursement against Borrower by the operation of Section 580d of California Code of Civil Procedure
or otherwise if applicable. Surety further waives all presentments, demands for performance, notices of nonperformance, or other
defaults, protests, notices of protest, notices of dishonor, and notices of acceptance of this Note and of the existence, creation,
or incurring of new or additional Indebtedness and all other rights, benefits, protections and other defenses available to Surety
now or at any time hereafter, including, without limitation, under California Civil Code Sections 2787 to 2855, inclusive, and
California Code of Civil Procedure Sections 580a, 580b, 726, and all successor sections. The separate property of any married person
executing this Note shall be liable for the Loan and Indebtedness evidenced hereby.

 

		22.	SPECIFIC WAIVERS OF EACH BORROWER. The indebtedness of each Borrower is independent of the
indebtedness of all other Borrowers. Each Borrower expressly waives any right to require Lender to proceed against any other Borrower,
to proceed against or exhaust any collateral, to pursue any remedy Lender may have at any time, and the benefit of any statute
of limitations affecting its liability under this Note or any other Loan Document. Each Borrower waives any and all defenses by
reason of: (a) any disability or other defense of any other Borrower with respect to the Indebtedness owed to Lender, (b) the termination
for any reason whatsoever of the liability of any other Borrower, (c) any act or omission of Lender that directly or indirectly
results in the release of any other Borrower, any guarantor, or any security provided by any Borrower or guarantor, (d) the failure
by Lender to perfect any security interest on any Collateral, and (e) an election of remedies by Lender, even though that election
of remedies, such as a non-judicial foreclosure with respect to security for this Note, has destroyed Borrower's rights of subrogation,
contribution, reimbursement, indemnity, set off, or other recourse against another Borrower by the operation of Section 580d of
the California Code of Civil Procedure or otherwise or under similar laws in other jurisdictions.

 

		22.1	BORROWER FURTHER AGREES. Each Borrower agrees that Lender may, in its sole discretion, at
any time, without notice, release all or any part of the security for this Note, grant extensions, change terms of payment, deferments,
renewals or reamortizations of any part of the debt evidenced by this Note, and release from personal liability any one or more
of the parties who are or may become liable for this debt; all without affecting the personal liability of any other party. Borrower
and endorsers of this Note also severally waive any and all other defenses or right of offset against the Holder hereof. No Borrower
shall have any right of subrogation, contribution, reimbursement, indemnity, set off, or other recourse and waives the benefit
of, or any right to participate in, any collateral until such time as all of the obligations owed by Borrower under this Note shall
have been satisfied in full. Each Borrower, to the extent it may lawfully do so, waives any defense under California anti-deficiency
statutes, or comparable provisions of the laws of any other state to the recovery of a deficiency after a foreclosure sale of such
property.

 

		22.2	BORROWER ADDITIONAL REPRESENTATIONS. Each Borrower represents to Lender that it has established
adequate means of obtaining from each other Borrower, on a continuing basis, information pertaining to the businesses, operations
and conditions (financial or otherwise) of each other Borrower and its properties, and each Borrower now is and will be familiar
with the businesses, operations and conditions (financial or otherwise) of each other Borrower and its properties. Each Borrower
waives and relinquishes any duty on the part of Lender (if such duty exists) to disclose to any Borrower any matter or fact related
to the businesses, operations, or conditions (financial or otherwise) of any other Borrower or its properties. Without limiting
the generality of the foregoing, each Borrower waives any defenses or rights arising under or of the kind described in California
Civil Code sections 2795, 2808, 2809, 2810, 2815, 2819 through 2825 (inclusive), 2832, 2839, and 2845 through 2850 (inclusive)
and similar laws in other jurisdictions.

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 10
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		23.	REAL ESTATE SECURED NOTE. This Note is secured by a Security Instrument under which all
amounts owed under this Note may become immediately due and payable under certain conditions. One of those conditions relates to
any transfer of the Property covered by the Security Instrument and to certain other transfers. Refer to each Security Instrument
for the specific conditions and requirements. When the Security Instrument is a Deed of Trust, the Deed of Trust provides as follows:

 

DUE ON SALE OR TRANSFER.
In the event the Property, (including any existing or subsequently acquired or created Water Assets), or any interest therein,
is transferred or agreed to be transferred, or any right to drill is exercised for any oil, gas or minerals in, on or under the
Property, without Beneficiary's prior written consent, all Indebtedness, irrespective of the maturity dates, at the option of the
holder hereof, and without demand or notice, shall immediately become due and payable. As used herein, “transferred”
means sold, conveyed, alienated, exchanged, transferred by gift, further encumbered, pledged, hypothecated, made subject to an
option to purchase, or otherwise disposed of, directly or indirectly, or in trust, voluntarily or involuntarily, by Trustor or
by operation of law or otherwise. Failure to exercise such option shall not constitute a waiver of the right to exercise this option
in the event of subsequent transfer or any subsequent agreement to transfer.

 

If Trustor is an entity other
than a natural person, then all Indebtedness, irrespective of the maturity date, at the option of Beneficiary, and without demand
or notice, shall become immediately due and payable if: (a) a beneficial interest in Trustor is transferred; (b) there is a withdrawal
or removal of a general partner of a partnership or a manager of a limited liability company; (c) there is a transfer in the aggregate
of more than 25% of the voting stock of Trustor, if Trustor is a corporation, or there is a transfer in the aggregate of more than
25% of the partnership interests or membership interests, if Trustor is a partnership, limited liability company or similar entity;
or (d) Trustor is dissolved or its existence as a legal entity is terminated.

 

		24.	NO ORAL AGREEMENTS. The representatives of Lender are not authorized to make any oral agreements
or assurances. Do not sign this Note if you believe that there are any agreements or understandings between you and Lender that
are not set forth in writing in this Note or the other Loan Documents.

 

		25.	SUCCESSORS AND ASSIGNS. This Note is binding on Borrower’s and Lender’s successors
and assignees. Borrower shall not assign this Note without Lender’s prior written consent. Lender may sell participations
in or assign this Note, and may exchange financial information about Borrower with actual or potential participants or assignees.
If participation is sold or the Note is assigned, the purchaser will have the right of set-off against Borrower.

 

		26.	SEVERABILITY; COUNTERPARTS. If one or more of the provisions of this Note, any Security
Instrument or any other Loan Documents are held to be invalid, or unenforceable in any respect, the validity, legality, and enforceability
of the remaining provisions shall not in any way be affected. To the extent any waiver of a right by Borrower hereunder may be
contrary to applicable law; such waiver shall be deemed made to the extent allowed by such law. This Note may be signed in one
or more counterparts which shall constitute one and the same Note. Only one such counterpart signed by the party against whom enforceability
is sought needs to be produced to evidence the existence of this Note.

 

		27.	CAPTIONS. Captions herein are only as a matter of convenience and for reference, and in
no way define, limit or describe the scope or intent of any term. As used herein, the word “including” means
including without limitation and/or including but not limited to.

 

		28.	APPLICABLE LAW. Enforcement of this Note, any Security Instrument, and any other Loan Document
executed in connection herewith shall be governed by and construed in accordance with federal laws to the extent applicable, and
shall otherwise be governed by and construed under the laws of the state specified in the address of Lender in Section 1, without
regard to its conflict of laws principles, unless a Security Instrument specifies that it shall be governed by the laws of a different
state, in which case the law of the state specified in the Security Instrument shall govern regarding the Security Instrument in
question.

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 11
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		29.	ENTIRE AGREEMENT; AMENDMENTS MUST BE IN WRITING. This Note, any Security Instrument and
modifications thereof, the Notice of Loan Approval, and any other Loan Document executed by Borrower in connection herewith, constitute
the entire agreement between Borrower and Lender and supersedes all prior communications, oral or written, concerning this Loan.
The Note shall not include any loan application or any written correspondence submitted by Borrower to Lender that has not been
agreed to by Lender in writing. To the extent that any of the terms or provisions in this Note are inconsistent with those contained
in the Notice of Loan Approval, or in any previous loan agreement, Security Instrument, agreement or other Loan Document executed
prior to this Note, the terms and provisions contained herein shall control. Otherwise, such provisions shall be considered cumulative.
This Note may be amended or modified only by a written instrument executed by Lender and Borrower. All exhibits to this Note are
considered to be supplemental to and made a part of this Note.

 

		30.	REIMBURSEMENT OF CHARGES. If any farm credit bank or any other provider of financing or
funding to Lender shall assess against Lender any fee, cost, charge, or other amount with respect to the Indebtedness, Borrower
shall reimburse Lender on demand for the amount thereof, regardless of whether such assessment arose from actions taken by Borrower.

 

		31.	ADVICE OF COUNSEL. Borrower understands this Agreement and has consulted with or had the
opportunity to consult with an attorney or other appropriate professional as to the terms hereof.

 

		32.	WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY CLAIM, ACTION, DISPUTE OR LEGAL PROCEEDING, COLLECTIVELY “ACTIONS”,
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE). EACH PARTY AGREES THAT ANY ACTIONS SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY. BORROWER ACKNOWLEDGES THIS WAIVER
IS A MATERIAL INDUCEMENT FOR LENDER ENTERING INTO THE LOAN DOCUMENTS.

 

		32.1	JUDICIAL REFERENCE. IF THE JURY TRIAL WAIVER IS DEEMED UNENFORCEABLE THEN EACH PARTY AGREES
ALL ACTIONS SHALL BE RESOLVED BY JUDICIAL REFERENCE. THE PARTIES AGREE TO THE APPOINTMENT OF A SINGLE REFEREE, AND SHALL USE THEIR
BEST EFFORTS TO AGREE ON THE SELECTION OF A REFEREE. IF THE PARTIES ARE UNABLE TO AGREE, A REFEREE SHALL BE APPOINTED BY THE COURT
TO HEAR ANY DISPUTES HEREUNDER IN LIEU OF ANY SUCH JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT THE APPOINTED REFEREE SHALL
HAVE THE POWER TO DECIDE ALL ISSUES IN THE APPLICABLE ACTION OR PROCEEDING, WHETHER OF FACT OR LAW, AND SHALL REPORT A STATEMENT
OF DECISION THEREON. NOTWITHSTANDING THE FOREGOING, ANY MATTERS WHICH WOULD NOT OTHERWISE BE THE SUBJECT OF A JURY TRIAL, SUCH
AS A PROVISIONAL REMEDY DEFINED IN CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 1281.8, AS AMENDED, WILL BE UNAFFECTED BY THIS WAIVER
AND THE AGREEMENTS HEREIN

 

		33.	REPORTING HEDGING ACTIVITY. If Borrower is involved in any hedging activities through the
use of futures or options, using Loan proceeds, notice of this activity must be provided to Lender. At Lender's discretion, a separate
tranche or separate loan may be established for the purpose of funding margin calls related to the hedging activity. Lender may
require Borrower to provide a risk management or marketing plan in support of this activity. Lender may require Borrower to execute
a Security Agreement, Investment Property Control Agreement or similar form of assignment or control agreement, as approved by
Lender, to be acknowledged by all brokers involved in Borrower's marketing and hedging program. Any hedging activity, or use of
futures or options markets, not consistent with acceptable hedging practices, as determined by Lender in Lender's sole discretion,
shall be considered a material breach of the Note and shall constitute an event of default.

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 12
                                                                                                                                                                                                                                                                                                                                                             of 13 

    
 
	Filing Ref. :	Limoneira Company	Loan Number:	8001790
	 	Customer Number: 	0005229057

 

    

 

		34.	WATER RIGHTS. Any grantor of a security interest in water rights to Lender, including but
not limited to a security interest under a deed of trust, security agreement or similar instrument, shall not take any of the following
actions with respect to those water rights without the prior written consent of Lender: sell, lease, pledge, transfer or otherwise
encumber in any manner, whether to another lender, irrigation district, or user.

 

ADDRESSES
WHERE NOTICE TO BORROWER IS TO BE SENT:

 

Limoneira Company, 1141 Cummings Road Santa Paula, CA 93060

 

This Agreement has been duly executed on
the day and year first written above.

 

BY SIGNING, BORROWER ACKNOWLEDGES THAT
BORROWER HAS READ AND AGREES TO THE TERMS OF THIS NOTE, AND HAS RECEIVED A COMPLETED COPY OF THIS NOTE AND THE RELATED MORTGAGE,
DEED OF TRUST OR OTHER SECURITY INSTRUMENTS WITH ALL APPLICABLE BLANKS FILLED IN PRIOR TO OR AS A PART OF THE CONSUMMATION OF THIS
TRANSACTION.

 

Signers:

 

Limoneira Company, a Delaware Corporation

 

 

	By:	/s/ Harold S. Edwards	 
	 	Harold S. Edwards, as President	 

 

 

	By:	/s/ Mark Palamountain	 
	 	Mark Palamountain, as Secretary	 

 

    	Form 1490 - Revolving Line of Credit Promissory Note and Loan Agreement (Rev 5.15)	Page 13
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