Document:

Exhibit 10.2

 

	Filing Ref. :	Limoneira Company	Loan/Supplement Number:	8363846-101
	 	Customer Number: 	0005229057

 

PROMISSORY NOTE AND SUPPLEMENT

TO MASTER LOAN AGREEMENT

 

This Revolving Credit Facility Supplement
(alternately, “Note” or “Supplement”) to a Master Loan Agreement dated June 19, 2017
(“MLA”) is established as of June 19, 2017 between the undersigned Borrower and Lender identified herein.

 

1.       PROMISE
TO PAY. For value received, Limoneira Company, a Delaware Corporation (“Borrower”) promises to pay to the
order of Farm Credit West, PCA (“Lender”), a corporation organized under the laws of the United States
of America, with its office at 2031 Knoll Drive, Ventura, CA 93003-7301 or at such other place as may be designated in writing
by Lender, the principal sum of $60,000,000.00 (Sixty Million Dollars and Zero Cents) (“Commitment”),
or so much of that sum as may be advanced or readvanced by Lender from time to time, together with interest on the unpaid principal
balance as specified in Section 3 below. All defined terms used in this Supplement shall have the same meaning as set forth in
the MLA. All Indebtedness shall be payable by Borrower only in lawful money of the United States of America.

 

		1.1	REVOLVING CREDIT FACILITY. On the terms and conditions in the MLA and this Supplement, Lender
agrees to make available to Borrower during the Draw Period a revolving line of credit in a principal amount not to exceed, at
any one time outstanding, the Commitment or the borrowing base or other guidelines where applicable, whichever is less. Within
the limits of the Commitment, as amounts drawn under the revolving line of credit are repaid, they may be reborrowed from time
to time during the Draw Period.

 

		1.2	DRAW PERIOD. Subject to the provisions of this Agreement, from the date of this Supplement
up to and including the Maturity Date (“Draw Period”), Borrower may draw Loan funds hereunder; and Lender shall
make advances of Loan funds to Borrower upon Borrower’s request.

 

		1.3	ONGOING REQUIREMENTS AND REPRESENTATIONS.  At the time of any draw request or draw by Borrower
or advance of Loan funds by Lender, Borrower shall not be in default hereunder. 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 terms in this Agreement,
the Security Instruments or any Loan Document in connection herewith, and that title to the Property defined in the Security Instruments
has not been “transferred”, as defined therein, without Lender’s written consent. If a default occurs, 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.

 

		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 may be made upon a verbal, written, or telecopied request from Borrower to Lender. Lender may rely
on any verbal request for a draw as fully as if such request were in writing. 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.

	 	 

2.      PAYMENTS.

 

Sixty (60) Monthly interest only
payments in the amount billed, beginning on July 1, 2017. One (1) installment of interest in the amount billed and
principal to be paid on July 1, 2022.

 

Payments, other than those required in
this Section or elsewhere herein, may be made at any time and in any amount during the term of this Note, unless limited or prohibited
herein or unless otherwise required by Lender in writing. This Loan is due and payable in full on July 1, 2022 (“Maturity
Date”), at which time Borrower shall pay the unpaid principal balance and all accrued interest in full.

 

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.

 

    	Page 1 of 6

     

    

 

	Filing Ref. :	Limoneira Company	Loan/Supplement Number:	8363846-101
	 	Customer Number: 	0005229057

 

3.      INTEREST.

 

		3.1	INITIAL RATE. 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, all late charges, default interest and other charges, 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 365-day year and the actual number of days in each month. Interest charges will begin on the date Lender
disburses principal and continue until the Indebtedness is paid in full with interest. The initial interest rate in effect on this
date is 2.89% per annum. The interest rate that Borrower will pay will change in accordance with 3.2-3.6 below.

 

		3.2	CHANGE DATES. The interest rate will automatically be adjusted on July 1, 2017 and on the
first day of the month each month thereafter (each a “Change Date”), until such time as Borrower may request
a conversion to the Variable Interest Rate pursuant to the Annual Option to Convert Interest Rate Product in Section 3.6.1 below,
at which time the Variable Rate provisions in Section 3.6 shall apply. On each Change Date Lender will calculate the new interest
rate by adding or subtracting the Applicable Margin to the LIBOR Rate.

  

		3.3	INDEX. Beginning on the first Change Date, the interest rate charged hereunder shall be
based on the one month LIBOR Rate plus the Applicable Margin as specified under the Performance Pricing provisions set forth in
Section 3.4 below. Libor Rate means the rate per annum obtained by dividing (rounded upwards to the next nearest 1/20th of 1%)
(a) (i) the rate per annum equal to the rate determined by the Lender to be the offered one month London Interbank Offered Rated
as published in The Wall Street Journal, or such other information service available to the Lender, determined as of approximately
11:00 a.m. (London, England time) three business days immediately preceding the Change Date, or (ii) in the event the rates referenced
in the preceding clause (i) are not available, the rate per annum (rounded upwards to the nearest 1/20 of 1%) equal to the offered
quotation rate to major banks in the London interbank market by the Lender for deposits (for delivery on the first day of the relevant
Change Date) in Dollars of amounts in same day funds comparable to the principal amount of the Loan of the Lender, in its capacity
as a Lender, for which the LIBOR Rate is then being determined with a one month maturity provided that: (i) to the extent a comparable
or successor rate is approved by Lender in connection herewith, the approved rate shall be applied in a manner consistent with
market practice; provided, further that to the extent such market practice is not administratively feasible for Lender, such approved
rate shall be applied in a manner as otherwise reasonably determined by Lender and (ii) if the LIBOR Rate shall be less than zero,
such rate shall be deemed zero for purposes of this Note.

 

		3.4	CALCULATION OF CHANGES.

 

"Applicable Margin" means the following percentages
per annum, based upon Borrower’s Modified Current Ratio or Current Ratio, as set forth in the most recent Combined Compliance
Certificate received by the Lender pursuant to Section 12.1 below.

 

Changes to the Applicable Margin shall be effective
February 1, April 1, July 1, and October 1 of each year.

 

    	Page 2 of 6

     

    

 

	Filing Ref. :	Limoneira Company	Loan/Supplement Number:	8363846-101
	 	Customer Number: 	0005229057

 

	Current Ratio	APPICABLE LIBOR 

Margin	Unused Commitment Fee Rate
	Modified Current Ratio < 1.00:1	LIBOR + 2.35%	0.25%
	Modified Current Ratio ≥ 1.00:1	LIBOR + 2.10%	0.20%
	Modified Current Ratio ≥ 1.10:1	LIBOR + 1.85%	0.15%
	Current Ratio ≥ 1.25:1	LIBOR  + 1.60%	0.15%

 

Modified Current Ratio means Modified Current Assets
divided by Current Liabilities. Modified Current Assets are defined as Current Assets plus the remaining available commitment on
the Loan.

  

		3.5	ANNUAL OPTIONS TO CONVERT INTEREST RATE PRODUCT. On July 1, 2018 and on each one-year anniversary
date thereafter (each an “Annual Optional Conversion Date”), Borrower shall have the option, by providing Lender
with 15 days’ prior written notice, to convert the interest rate from the Libor Rate to the Variable Interest Rate, or from
the Variable Interest Rate to the Libor Rate, as applicable. Only one interest rate product may be in effect for all outstanding
Commitment in any given one-year period.

 

		3.6	VARIABLE INTEREST RATE. In the event Borrower converts to a Variable
Interest Rate on any Annual Optional Conversion Date, such rate shall be subject to the following terms:

 

The Variable
Rate shall change in accordance with Sections 3.6.1 below and interest shall accrue at the Variable Interest Rate as established
by Lender for the interest rate group to which this Note is assigned.

 

		3.6.1	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 set forth 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 Loan.

 

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 or under any other note or agreement between
Borrower and Lender.

 

		3.7	NOTICE. If Lender changes Borrower’s Interest Rate, Lender will give Borrower notice
of such rate change to the extent required by then applicable law. Any notices under this Supplement shall be given in accordance
with the notice section of the MLA.

 

4.      INTEREST
FOR OVERDUE PAYMENTS.  Any interest or other sum owed hereunder which is not paid when due shall be added to the outstanding
principal balance of the Loan and such combined amount shall thereafter bear interest at the same rate as the principal portion
of the Loan.

 

5.      DEFAULT
AND REMEDIES. Borrower is in default on this Supplement if Borrower is in default under the MLA. If a default occurs, Lender
shall have all the Remedies in the MLA.

 

    	Page 3 of 6

     

    

 

	Filing Ref. :	Limoneira Company	Loan/Supplement Number:	8363846-101
	 	Customer Number: 	0005229057

 

6.      SECURITY. The security given
by Borrower to Lender includes, without limitation, the following:

 

		6.1	This Note shall be secured by a real estate Deed of Trust dated 06/19/2017 to be recorded in the
official records of Tulare County, State of California.

 

		6.2	This Note shall be secured by a real estate Deed of Trust dated 06/19/2017 to be recorded in the
official records of Ventura County, State of California.

 

		6.3	This Note shall be secured by a security interest in personal property granted by the Security
Instruments and all additions, replacements or amendments thereto as such may be made from time to time.

 

7.      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 to 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.

 

8.      LEGAL
ENTITY STATUS. If Borrower is a legal entity, by signing below, the undersigned representatives of such entity represent that
there have been NO CHANGES in: the entity’s directors, officers, partners, managers, trustees or beneficiaries; or in the
entity’s lawful powers to borrow or encumber entity assets to secure its debts; or in the authority of any person signing
below to act for and bind the entity; or in the entity’s Articles, Bylaws, or other applicable legal documents creating or
sustaining the entity since the later of delivery to Lender of the last statement proving entity status and authorization or such
entity organizational documents and consents as requested by Lender.

 

9.       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.

 

10.     REAL
ESTATE SECURED NOTE. This Note is secured by a Security Instrument which describes how and under what conditions all amounts
owed under this Note may become immediately due and payable. 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 Asset), or any interest therein, is
transferred or agreed to be transferred or any right to drill oil, gas or minerals is exercised in, on, or under the Property,
without Beneficiary's prior written consent, except as specifically allowed under Section 6 above, 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 subsequent agreement to transfer.

 

If Trustor is an entity other
than a natural person (such as a corporation or other organization), 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 Trustor is dissolved or
its existence as a legal entity is terminated.

 

    	Page 4 of 6

     

    

 

	Filing Ref. :	Limoneira Company	Loan/Supplement Number:	8363846-101
	 	Customer Number: 	0005229057

 

11.     Counterpart
Signatures. 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.

 

12.     SPECIAL
REPRESENTATIONS, WARRANTIES, CONDITIONS AND COVENANTS.

 

		12. 1	
        DISBURSEMENT INSTRUCTIONS.
        Borrower understands and agrees Lender shall disburse loan funds based on the following:

         

        Disbursements of loan funds
        shall not exceed the lesser of:

        

        

        1.     $60,000,000;
        or

        

        

        2.    The amount
        at which, if the remaining available Commitment were drawn and applied to Current Assets, the Current Ratio would calculate to
        equal 1.10:1, measured at each quarter end.

         

		12.2	
        COMBINED COMPLIANCE CERTIFICATE.  Concurrently
with the delivery of the FYE (Borrower’s SEC Form 10-K) and quarterly (Borrower’s SEC Form 10-Q) Financial Statements
required under the MLA, Borrower shall deliver to Lender a duly completed Combined Compliance Certificate, certifying that all
information contained therein is complete and correct and that no Default exists under this Supplement or the other Loan Documents
or, if any such Default shall exist, stating the nature and status of such event. The term "Combined Compliance Certificate"
means a certificate substantially in form and substance satisfactory to Lender, executed on behalf of Borrower by an authorized
party of Borrower, to determine the Applicable Margin and to evidence compliance with the financial covenants contained in this
Supplement and the MLA, substantially the form set forth in Exhibit A attached hereto.

         

		12.3	UNUSED COMMITMENT FEE. Borrower shall pay Lender an unused commitment fee (“Unused
Commitment Fee”) equal to the product of (i) the applicable percentage specified in Section 3.4 above that corresponds
to the Modified Current Ratio or Current Ratio, times (ii) the actual daily amount by which the Commitment exceeds the actual
daily amount of Commitment outstanding. The Unused Commitment Fee shall be calculated on the basis of a 365-day year and the actual
number of days in each month, accrue at all times during the Draw Period, and shall be due and payable at the same time as monthly
interest only payments specified under Section 2.

 

 

Signatures appear on the following
page

 

    	Page 5 of 6

     

    

 

	Filing Ref. :	Limoneira Company	Loan/Supplement Number:	8363846-101
	 	Customer Number: 	0005229057

 

REPRESENTATIVES OF LENDER ARE NOT AUTHORIZED
TO MAKE ANY ORAL AGREEMENTS OR ASSURANCES. DO NOT SIGN THIS AGREEMENT IF YOU BELIEVE THAT THERE ARE ANY AGREEMENTS OR UNDERSTANDINGS
BETWEEN YOU AND LENDER THAT ARE NOT SET FORTH IN WRITING IN THIS AGREEMENT OR IN OTHER LOAN DOCUMENTS PERTAINING TO THIS LOAN.

 

This Supplement has been executed as of the date first written
above.

  

	Signature(s):	 	 
	 	 	 
	Limoneira Company, a Delaware Corporation	 	 
	 	 	 
	
         

         

        By:  /s/ Harold S.
        Edwards                                        

        Harold S. Edwards, President

         

         

        By:  /s/ Joseph D. Rumley                                       

        Joseph D. Rumley, Secretary
	 	 

 

 

 

    	Page 6 of 6Exhibit 10.3

 

	Filing Ref.:	Limoneira Company	Loan/Supplement Number:	8363846-201
	 	             Customer Number:	0005229057

 

PROMISSORY NOTE AND SUPPLEMENT

TO MASTER LOAN AGREEMENT

 

This Non-revolving Credit Facility Supplement
(alternately, “Note” or “Supplement”) to a Master Loan Agreement dated June 19, 2017
(“MLA”) is established as of June 19, 2017 between the undersigned Borrower and Lender identified herein.

 

1.      PROMISE
TO PAY. For value received, Limoneira Company, a Delaware Corporation ( “Borrower”) promises to pay to the
order of Farm Credit West, PCA (“Lender”), a corporation organized under the laws of the United States
of America, with its office at 2031 Knoll Drive, Ventura, CA 93003-7301 or at such other place as may be designated in writing
by Lender, the principal sum of $40,000,000.00 (Forty Million Dollars and Zero Cents) (“Commitment”),
or so much of that sum as may be advanced by Lender from time to time, together with interest on the unpaid principal balance as
specified in Section 3 below. All defined terms used in this Supplement shall have the same meaning as set forth in the MLA. All
Indebtedness shall be payable by Borrower only in lawful money of the United States of America.

 

		1.1	NON-REVOLVING CREDIT FACILITY. On the terms and conditions in the MLA and this Supplement,
Lender agrees to make Loan advances to Borrower during the period set forth below in the aggregate principal amount not to exceed
at any one time outstanding the Commitment or the borrowing base or other guidelines where applicable, whichever is less. Amounts
borrowed and later repaid may not be reborrowed.

 

		1.2	TERM. The term of the Commitment shall be from the date of this Supplement up to and including
the Maturity Date, or such later date as Lender may in its sole discretion authorize in writing. Borrower may draw funds only during
the term of the Commitment.

 

		1.3	ONGOING REQUIREMENTS AND REPRESENTATIONS.  At the time of any draw request or draw by Borrower
or advance of Loan funds by Lender, Borrower shall not be in default hereunder. 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 terms in this Agreement,
the Security Instruments or any Loan Document in connection herewith, and that title to the Property defined in the Security Instruments
has not been transferred without Lender’s written consent. If a default occurs, 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.

 

		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 may be made upon a verbal, written, or telecopied request from Borrower to Lender. Lender may rely
on any verbal request for a draw as fully as if such request were in writing. 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.

 

2.      PAYMENTS.

 

Sixty (60) Monthly interest only
payments in the amount billed, beginning on July 1, 2017. One (1) installment of interest in the amount billed and
principal to be paid on July 1, 2022.

 

Payments, other than those required in
this Section or elsewhere herein, may be made at any time and in any amount during the term of this Note, unless limited or prohibited
herein or unless otherwise required by Lender in writing. This Loan is due and payable in full on July 1, 2022 (“Maturity
Date”), at which time Borrower shall pay the unpaid principal balance and all accrued interest in full.

 

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.

 

    	Page 1 of 5

     

    

 

	Filing Ref.:	Limoneira Company	Loan/Supplement Number:	8363846-201
	 	             Customer Number:	0005229057

 

3.      INTEREST.

 

		3.1	INITIAL RATE. 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, all late charges, default interest and other charges, 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 365-day year and the actual number of days in each month. Interest charges will begin on the date Lender
disburses principal and continue until the Indebtedness is paid in full with interest. The initial interest rate in effect on this
date is 2.89% per annum. The interest rate that Borrower will pay will change in accordance with 3.2-3.6 below.

 

		3.2	CHANGE DATES. The interest rate will automatically be adjusted on July 1, 2017 and on the
first day of the month each month thereafter (each a “Change Date”), until such time as Borrower may request
a conversion to the Variable Interest Rate pursuant to the Annual Option to Convert Interest Rate Product in Section 3.6.1 below,
at which time the Variable Rate provisions in Section 3.6 shall apply. On each Change Date Lender will calculate the new interest
rate by adding or subtracting the Applicable Margin to the LIBOR Rate.

 

		3.3	INDEX. Beginning on the first Change Date, the interest rate charged hereunder shall be
based on the one month LIBOR Rate plus the Applicable Margin as specified under the Performance Pricing provisions set forth in
Section 3.4 below. Libor Rate means the rate per annum obtained by dividing (rounded upwards to the next nearest 1/20th of 1%)
(a) (i) the rate per annum equal to the rate determined by the Lender to be the offered one month London Interbank Offered Rated
as published in The Wall Street Journal, or such other information service available to the Lender, determined as of approximately
11:00 a.m. (London, England time) three business days immediately preceding the Change Date, or (ii) in the event the rates referenced
in the preceding clause (i) are not available, the rate per annum (rounded upwards to the nearest 1/20 of 1%) equal to the offered
quotation rate to major banks in the London interbank market by the Lender for deposits (for delivery on the first day of the relevant
Change Date) in Dollars of amounts in same day funds comparable to the principal amount of the Loan of the Lender, in its capacity
as a Lender, for which the LIBOR Rate is then being determined with a one month maturity provided that: (i) to the extent a comparable
or successor rate is approved by Lender in connection herewith, the approved rate shall be applied in a manner consistent with
market practice; provided, further that to the extent such market practice is not administratively feasible for Lender, such approved
rate shall be applied in a manner as otherwise reasonably determined by Lender and (ii) if the LIBOR Rate shall be less than zero,
such rate shall be deemed zero for purposes of this Note.

 

		3.4	CALCULATION OF CHANGES.

 

"Applicable Margin" means the following percentages
per annum, based upon Borrower’s Modified Current Ratio or Current Ratio, as set forth in the most recent Combined Compliance
Certificate received by the Lender pursuant to Section 12.1 below.

 

Changes to the Applicable Margin shall be effective
February 1, April 1, July 1, and October 1 of each year.

 

    	Page 2 of 5

     

    

 

	Filing Ref.:	Limoneira Company	Loan/Supplement Number:	8363846-201
	 	             Customer Number:	0005229057

  

	Current Ratio	APPICABLE LIBOR

 Margin
	Modified Current Ratio < 1.00:1	LIBOR + 2.35%
	Modified Current Ratio ≥ 1.00:1	LIBOR + 2.10%
	Modified Current Ratio ≥ 1.10:1	LIBOR + 1.85%
	Current Ratio ≥ 1.25:1	LIBOR  + 1.60%

 

Modified Current Ratio means Modified Current Assets
divided by Current Liabilities. Modified Current Assets are defined as Current Assets plus the remaining available commitment on
the Loan.

 

		3.5	ANNUAL OPTIONS TO CONVERT INTEREST RATE PRODUCT. On July 1, 2018 and on each one-year anniversary
date thereafter (each an “Annual Optional Conversion Date”), Borrower shall have the option, by providing Lender
with 15 days’ prior written notice, to convert the interest rate from the Libor Rate to the Variable Interest Rate, or from
the Variable Interest Rate to the Libor Rate, as applicable. Only one interest rate product may be in effect for all outstanding
Commitment in any given one-year period.

 

		3.6	VARIABLE INTEREST RATE. In the event Borrower converts to a Variable
Interest Rate on any Annual Optional Conversion Date, such rate shall be subject to the following terms:

 

The Variable
Rate shall change in accordance with Sections 3.6.1 below and interest shall accrue at the Variable Interest Rate as established
by Lender for the interest rate group to which this Note is assigned.

 

		3.6.1	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 set forth 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 Loan.

 

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 or under any other note or agreement between
Borrower and Lender.

 

		3.7	NOTICE. If Lender changes Borrower’s Interest Rate, Lender will give Borrower notice
of such rate change to the extent required by then applicable law. Any notices under this Supplement shall be given in accordance
with the notice section of the MLA.

 

4.      INTEREST
FOR OVERDUE PAYMENTS.  Any interest or other sum owed hereunder which is not paid when due shall be added to the outstanding
principal balance of the Loan and such combined amount shall thereafter bear interest at the same rate as the principal portion
of the Loan.

 

5.      DEFAULT
AND REMEDIES. Borrower is in default on this Supplement if Borrower is in default under the MLA. If a default occurs, Lender
shall have all the Remedies in the MLA.

 

    	Page 3 of 5

     

    

 

	Filing Ref.:	Limoneira Company	Loan/Supplement Number:	8363846-201
	 	             Customer Number:	0005229057

 

6.      SECURITY. The security given
by Borrower to Lender includes, without limitation, the following:

 

		6.1	This Note shall be secured by a real estate Deed of Trust dated 06/19/2017 to be recorded in the
official records of Tulare County, State of California.

 

		6.2	This Note shall be secured by a real estate Deed of Trust dated 06/19/2017 to be recorded in the
official records of Ventura County, State of California.

 

		6.3	This Note shall be secured by a security interest in personal property granted by the Security
Instruments and all additions, replacements or amendments thereto as such may be made from time to time.

 

7.      PREPAYMENT;
REAMORTIZATION; REFINANCE; INTEREST RATE CONVERSION. A payment, in any amount, made in advance of the scheduled payment date
is a “prepayment.” Borrower may make a prepayment in whole or in part, with no prepayment charges, on any business
day on or after the termination of that certain Interest Rate Exchange Transaction between Borrower and CoBank, ACB dated _____,
2017, or any replacement thereof. 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 to 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.

 

8.      LEGAL
ENTITY STATUS. If Borrower is a legal entity, by signing below, the undersigned representatives of such entity certify that
there have been NO CHANGES in: the entity’s directors, officers, partners, managers, trustees or beneficiaries; or in the
entity’s lawful powers to borrow or encumber entity assets to secure its debts; or in the authority of any person signing
below to act for and bind the entity; or in the entity’s Articles, Bylaws, or other applicable legal documents creating or
sustaining the entity since the later of delivery to Lender of the last statement proving entity status and authorization or such
entity organizational documents and consents as requested by Lender.

 

9.      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.

 

10.    REAL
ESTATE SECURED NOTE. This Note is secured by a Security Instrument which describes how and under what conditions all amounts
owed under this Note may become immediately due and payable. 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 Asset), or any interest therein, is
transferred or agreed to be transferred or any right to drill oil, gas or minerals is exercised in, on, or under the Property,
without Beneficiary's prior written consent, except as specifically allowed under Section 6 above, 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 subsequent agreement to transfer.

 

If Trustor is an entity other
than a natural person (such as a corporation or other organization), 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 Trustor is dissolved or
its existence as a legal entity is terminated.

 

    	Page 4 of 5

     

    

 

	Filing Ref.:	Limoneira Company	Loan/Supplement Number:	8363846-201
	 	             Customer Number:	0005229057

 

11.      Counterpart
Signatures. 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.

 

12.     SPECIAL
REPRESENTATIONS, WARRANTIES, CONDITIONS AND COVENANTS.

 

		12.1	COMBINED COMPLIANCE CERTIFICATE.  Concurrently with the delivery of the FYE (Borrower’s SEC Form 10-K) and quarterly
(Borrower’s SEC Form 10-Q) Financial Statements required under the MLA, Borrower shall deliver to Lender a duly completed
Combined Compliance Certificate, certifying that all information contained therein is complete and correct and that no Default
exists under this Supplement or the other Loan Documents or, if any such Default shall exist, stating the nature and status of
such event. The term "Combined Compliance Certificate" means a certificate substantially in form and substance
satisfactory to Lender, executed on behalf of Borrower by an authorized party of Borrower, to determine the Applicable Margin and
to evidence compliance with the financial covenants contained in this Supplement and the MLA, substantially the form set forth
in Exhibit A attached hereto.

 

REPRESENTATIVES OF LENDER ARE NOT AUTHORIZED
TO MAKE ANY ORAL AGREEMENTS OR ASSURANCES. DO NOT SIGN THIS AGREEMENT IF YOU BELIEVE THAT THERE ARE ANY AGREEMENTS OR UNDERSTANDINGS
BETWEEN YOU AND LENDER THAT ARE NOT SET FORTH IN WRITING IN THIS AGREEMENT OR IN OTHER LOAN DOCUMENTS PERTAINING TO THIS LOAN.

 

This Supplement has been executed as of
the date first written above.

 

	Signature(s):	 	 
	 	 	 
	Limoneira Company, a Delaware Corporation	 	 
	 	 	 
	
         

         

        By:  /s/ Harold S. Edwards                                  

        Harold S. Edwards, President

         

         

         

        By:  /s/ Joseph D. Rumley                                  

        Joseph D. Rumley, Secretary
	 	 

 

    	Page 5 of 5

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