Document:

char1-1767919v1xexecuted

Execution Version  CHAR1\1753723v8 AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT  among  GLADSTONE LENDING COMPANY, LLC  as Grantor FARMER MAC MORTGAGE SECURITIES CORPORATION,  as Purchaser, and  FEDERAL AGRICULTURAL MORTGAGE CORPORATION,  as Collateral Agent and Bond Guarantor,  Dated as of December 10, 2020  

 

i  CHAR1\1753723v8 TABLE OF CONTENTS  Page  ARTICLE 1 DEFINITIONS; INTERPRETATIONS .................................................................... 3 Section 1.1 Certain Terms Defined ................................................................................ 3 Section 1.2 Interpretation ............................................................................................... 8 ARTICLE 2 SECURITY INTEREST ............................................................................................ 9 Section 2.1 Creation of Security Interest in Collateral .................................................. 9 Section 2.2 Maintenance of Qualified Collateral Schedule ........................................... 9 Section 2.3 Qualified Collateral ................................................................................... 10 Section 2.4 Undertakings Regarding Collateral ........................................................... 11 Section 2.5 Risk of Loss of Collateral ......................................................................... 12 ARTICLE 3 COLLATERAL AGENT ......................................................................................... 12 Section 3.1 Appointment as Collateral Agent.............................................................. 12 Section 3.2 Resignation of the Collateral Agent .......................................................... 12 Section 3.3 Eligibility of Successor Collateral Agent ................................................. 13 Section 3.4 Merger or Consolidation ........................................................................... 13 Section 3.5 Duties and Responsibilities of the Collateral Agent ................................. 13 Section 3.6 Limitation on Liability of the Collateral Agent ........................................ 14 Section 3.7 [Reserved] ................................................................................................. 14 ARTICLE 4 EVENTS OF DEFAULT ......................................................................................... 14 Section 4.1 Events of Default ...................................................................................... 14 Section 4.2 Remedies Upon an Event of Default ........................................................ 15 Section 4.3 Appointment of Collateral Agent as Attorney-in-Fact; Sub-Agents ........ 17 ARTICLE 5 AGVANTAGE BOND DOCUMENTATION ........................................................ 17 Section 5.1 Maintenance of AgVantage Bond Documentation ................................... 17 ARTICLE 6 REPRESENTATIONS, WARRANTIES AND COVENANTS ............................. 17 Section 6.1 Representations and Warranties ................................................................ 18 Section 6.2 Covenants .................................................................................................. 18 Section 6.3 Negative Covenants .................................................................................. 19 ARTICLE 7 INDEMNIFICATION .............................................................................................. 20 Section 7.1 Indemnification by Grantor ....................................................................... 20 ARTICLE 8 MISCELLANEOUS ................................................................................................ 20 Section 8.1 Successors and Assigns of Grantor Bound by Agreement ....................... 20 Section 8.2 Amendments; Assignments ...................................................................... 20 Section 8.3 No Liability for the Collateral Agent ........................................................ 20 Section 8.4 Governing Law ......................................................................................... 21 Section 8.5 Consent to Jurisdiction .............................................................................. 21 Section 8.6 Waiver of Jury Trial .................................................................................. 21 

 

ii  CHAR1\1753723v8 Section 8.7 Entire Agreement ...................................................................................... 21 Section 8.8 Limitation on Rights of Others ................................................................. 21 Section 8.9 Severability ............................................................................................... 21 Section 8.10 Counterparts .............................................................................................. 22 Section 8.11 No Waiver ................................................................................................. 22 Section 8.12 Remedies Cumulative ............................................................................... 22 Section 8.13 Notices ...................................................................................................... 22 Section 8.14 Amendment and Restatement ................................................................... 24 ARTICLE 9 TERMINATION OF SECURITY INTEREST ....................................................... 24 Section 9.1 Termination of Security Interest ............................................................... 24 Section 9.2 Evidence of Termination........................................................................... 24 Schedule I  Schedule II  Exhibit A  Exhibit B  

 

3  CHAR1\1753723v8 THIS AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT  effective as of December 10, 2020 (this “Agreement”), between Gladstone Lending Company,  LLC, a Delaware limited liability company (including its successors and permitted assigns, the  “Grantor”), Farmer Mac Mortgage Securities Corporation (including its successors and permitted  assigns, the “Purchaser”), which is a wholly-owned subsidiary of the Federal Agricultural  Mortgage Corporation, a federally chartered instrumentality of the United States (“Farmer Mac”), and Farmer Mac, as Collateral Agent and Bond Guarantor, for the benefit of the AgVantage Bond  Holders.  WITNESSETH  WHEREAS, the Grantor may from time to time issue one or more secured debt obligations  (the “AgVantage Bonds”) to the Purchaser, and the Purchaser may purchase such AgVantage  Bonds, all upon the terms and subject to the conditions set forth in the Bond Purchase Agreement;  and  WHEREAS, the Grantor desires to grant to the Collateral Agent, for the benefit of the  Control Party, a security interest in the collateral hereinafter described as security for the  obligations of the Grantor under the AgVantage Bonds issued pursuant to the Bond Purchase  Agreement; and  WHEREAS, the transactions contemplated herein and in the Bond Purchase Agreement  are in the interest of the Grantor; and   WHEREAS, Farmer Mac, the Collateral Agent the Purchaser and Grantor previously  entered into a Pledge and Security Agreement dated as of December 5, 2014 (as modified or  amended from time to time, the “Existing Agreement”); and  WHEREAS, Farmer Mac, the Collateral Agent, the Purchaser and Grantor desire to amend  and restate the Existing Agreement in this Amended and Restated Pledge and Security Agreement  effective as of December 10, 2020.  NOW THEREFORE, for valuable consideration and intending to be legally bound, the  Grantor and the Collateral Agent do hereby agree as follows.  ARTICLE 1  DEFINITIONS; INTERPRETATIONS  Section 1.1 Certain Terms Defined.  In this Agreement, the following terms shall have the meanings specified in this Section  for all purposes of this Agreement, unless otherwise expressly provided.  “Agreement” means this instrument as originally executed and delivered and as the same  may be amended, supplemented, modified, restated or replaced from time to time. “AgVantage Bond” has the meaning set forth in the first recital to this Agreement. 

 

4  CHAR1\1753723v8 “AgVantage Bond Balance” means the outstanding balance of all the AgVantage Bonds  issued pursuant to the Bond Purchase Agreement from time to time. “AgVantage Bond Documents” has the meaning set forth in Section 5.1. “AgVantage Bond Holder” means the holders from time to time of any AgVantage Bonds  issued pursuant to the Bond Purchase Agreement, which initially shall be Farmer Mac Mortgage  Securities Corporation as Purchaser. “AgVantage Bond Resolutions” has the meaning set forth in Section 6.1(a)(i).  “AMBS” means securities representing interests solely in, or obligations fully backed by,  pools of loans. “Appraised Value” means, on any date of determination, with respect to any agricultural  real estate securing the Qualified Collateral, the most recent appraised value of such agricultural  real estate; provided, that the related appraisal was performed by a licensed and certified,  independent appraiser, excludes all Tenant Improvements, and is reasonably acceptable to Farmer  Mac in form and substance. “Bond Guarantor” means Farmer Mac.  “Bond Guarantor Default” means a default by the Bond Guarantor that is existing and  continuing with respect to an AgVantage Bond under its obligations pursuant to the Bond Purchase  Agreement. “Bond Purchase Agreement” means the AgVantage Bond Purchase Agreement dated the  date hereof among the Grantor, the Purchaser and Farmer Mac, as the same may be amended,  restated, extended, supplemented or otherwise modified in writing from time to time in accordance  with the terms thereof. “Borrower” has the meaning set forth in the Bond Purchase Agreement. “Business Day” means a day (other than a Saturday or Sunday) on which commercial  banks and foreign exchange markets are open for business in New York, New York or the District  of Columbia. “Certificate of Pledged Collateral” means a certificate delivered by the Grantor to the  Collateral Agent and the Control Party substantially in the form of Schedule II attached hereto. “Collateral” means (a) all Qualified Collateral and (b) all loans or AMBS that, as of any  date of determination, were included in a Qualified Collateral Schedule but fail to meet the  Eligibility Criteria as of such date of determination and Mortgage Documents and other  documents, instruments or liens representing or securing such loans or AMBS.  “Collateral Agent” means Farmer Mac or its successor, as appointed pursuant to the terms  set forth in Article 3. 

 

5  CHAR1\1753723v8 “Commission” means the Securities and Exchange Commission. “Control Party” means, (i) Farmer Mac for so long as there is no Bond Guarantor Default  existing and continuing with respect to the applicable AgVantage Bonds, or (ii) the AgVantage  Bond Holder (or holders of a majority of the aggregate outstanding principal amount of the  applicable AgVantage Bonds if held by more than one holder) for so long as a Bond Guarantor  Default is existing and continuing. “Eligibility Criteria” means the eligibility criteria listed on Schedule I attached hereto.  “Event of Default” has the meaning set forth in Section 4.1. “Excluded Agent” means Farmer Mac or any of its affiliates acting as Sub-Agents  pursuant to this Agreement. “Farmer Mac” has the meaning set forth in the first paragraph of this Agreement.   “Fitch” means Fitch, Inc. and any successor thereto. “Grantor” has the meaning set forth in the first paragraph of this Agreement.   “Guaranteed Obligation” has the meaning set forth in the Bond Purchase Agreement. “Loan File” has the meaning ascribed thereto in Exhibit A attached hereto and  incorporated herein by reference. “Market Value” means with respect to any item of Qualified Collateral, the market value  of such item of Qualified Collateral, determined by the Grantor in accordance with (i) in respect  of any Qualified Loan, the Grantor’s customary procedures for determining the market value of  agricultural loans included in the Grantor’s portfolio from time to time; (ii) in respect of any cash,  the amount of such cash; (iii) in respect of any security included in the Qualified Substitute  Collateral, the market value of such security as determined by the Grantor’s customary procedures  for determining the market value of that type of security included in its portfolio from time to time;  and (iv) in respect of any other property included in the Qualified Substitute Collateral, the  Grantor’s customary procedures for determining the market value of any like property.   Notwithstanding anything herein to the contrary, the parties agree that Grantor’s “customary  procedures” for the purposes of this definition shall be the customary internal practices of the REIT  (defined below) for valuing assets owned by the REIT or its partially or wholly owned subsidiaries  or affiliates, which internal practices are consistent with industry standards for comparable real  estate investment trusts and their property portfolios; provided, that for purposes of determining  the Market Value of agricultural real estate securing the Qualified Collateral, the Market Value  shall be the most recent Appraised Value. “Minimum Required Collateralization Level” has the meaning set forth in  Section 2.3(a).  “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto. 

 

6  CHAR1\1753723v8 “Mortgage Documents” means the following documents contained in the Loan File for  each loan that, as of any date of determination, was included in a Qualified Collateral Schedule: (i) the original mortgage note endorsed in blank or in the name of the Collateral  Agent;  (ii) a copy of the mortgage with evidence of recording thereon;  (iii) a copy of an assignment of the mortgage in blank or in the name of the  Collateral Agent;  (iv) copies of all applicable appraisals;  (v) copies of any assumptions, modifications, or substitutions with evidence of  recording thereon, if applicable;  (vi) copies of any security documents, including UCC financing statements, if  applicable;  (vii) if the Borrower under a loan is acquiring the agricultural real estate property  that will secure such loan substantially simultaneously with obtaining the loan, (a) a copy  of the proforma policy of owner’s title insurance to be obtained by such Borrower (to be  followed by a copy of the actual policy of owner’s title insurance obtained by the Borrower  within three (3) Business Days after such policy has been obtained) and (b) an owner’s  affidavit delivered by the seller of such agricultural real estate property in connection with  the Borrower’s acquisition; or if the Borrower under a loan is financing or refinancing the  subject agricultural real estate property after a period of ownership, (a) a title report that is  up to date within five (5) business days of the date of issuance of an AgVantage Bond  under the Bond Purchase Agreement and (b) a copy of a standard owner’s affidavit in favor  of Grantor.  (viii) any applicable settlement documentation; and  (ix) such other documentation as the Collateral Agent may reasonably request  to evidence the Collateral Agent’s first lien position in the Collateral.  “Mortgage Guidelines” means the mortgage loan underwriting, appraisal, and servicing  guidelines and procedures that the Grantor has adopted in accordance with its underwriting,  appraising, and servicing activities with respect to the Collateral.  “Operating Partnership” means Gladstone Land Limited Partnership.  “Permitted Liens” means, in respect of any item of Collateral, (i) liens for taxes,  assessments and governmental charges or levies; and (ii) liens imposed by law, such as  materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s liens and other similar liens  arising in the ordinary course of business securing obligations that are not overdue for a period of  more than 30 days after Grantor first receives notice of such lien.  

 

7  CHAR1\1753723v8 “Proceeds” means: (i) all “proceeds” as defined in Article 9 of the UCC as in effect from  time to time in the State of New York; (ii) all interest, dividends, payments or distributions made  with respect to any of the Collateral; and (iii) whatever is receivable or received when the  Collateral or proceeds are sold, exchanged, collected, converted or otherwise disposed of, whether  such disposition is voluntary or involuntary.  “Purchaser” has the meaning set forth in the first paragraph of this Agreement.  “Qualified AMBS” means securities representing interests solely in, or obligations fully  backed by, pools of Qualified Loans. “Qualified Collateral” means: (i) Qualified Loans or Qualified AMBS; (ii) Mortgage  Documents and other documents, instruments or liens representing or securing the Qualified Loans  or Qualified AMBS; (iii) all payment records with respect to the Qualified Loans or Qualified  AMBS; (iv) the Securities Account; (vi) all Qualified Substitute Collateral; (vi) all documents  relating to the Securities Account; (vii) all Proceeds of the foregoing regardless of the form thereof,  including, without limitation, all Proceeds in the form of accounts, chattel paper, payment  intangibles, promissory notes and goods subject to a consignment; and (viii) with respect to any  portion of the Qualified Collateral in excess of 100% of the AgVantage Bond Balance, any  Qualified Substitute Collateral.  “Qualified Collateral Schedule” means the schedule setting forth (x) all Qualified  Collateral and (y) all loans or AMBS, whether or not meeting the Eligibility Criteria as of such  date of determination, and Mortgage Documents and other documents, instruments or liens  representing or securing such loans or AMBS pledged under this Agreement delivered by the  Grantor pursuant to Section 2.2, as the schedule may be amended, supplemented or modified from  time to time. “Qualified Loans” means, as of any date of determination, the agricultural mortgage loans  meeting the Eligibility Criteria and identified as of such date of determination on the Qualified  Collateral Schedule.  For purposes of the Eligibility Criteria, taxes and assessments in respect of  any Qualified Loan shall be deemed to be paid current as of such date if (i) (A) taxes and  assessments were paid current at the time of the initial funding of such Qualified Loan and (B)  taxes or assessments due and payable after the time of the initial funding of such Qualified Loan  shall have been paid within 45 Business Days of the Grantor’s actually becoming aware that such  taxes or assessments on such Qualified Loan are overdue and/or delinquent, or (ii) such taxes or  assessments are being contested by the Grantor or the obligor on such Qualified Loan in good  faith. “Qualified Substitute Collateral” means, at any time, (i) cash, (ii) U.S.  Treasury  securities, or (iii) securities issued or fully guaranteed by an agency or instrumentality of the United  States, in each case deposited or held in or transferred or credited to or carried in the Securities  Account and listed as of such time on the Qualified Collateral Schedule. “REIT” means the Gladstone Land Corporation, a Maryland corporation, and the  consolidated parent company of Issuer. 

 

8  CHAR1\1753723v8 “Responsible Officer” means, with respect to the Collateral Agent, any officer of the  Collateral Agent, including any vice president, assistant vice president, secretary, assistant  treasurer, trust officer, or any other officer of the Collateral Agent assigned by the Collateral Agent  to administer the transactions contemplated hereby. “S&P” Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and  any successor thereto. “Securities Account” means the securities account established with the Securities  Intermediary pursuant to the Securities Account Control Agreement. “Securities Account Control Agreement” means the Securities Account Control  Agreement among the Grantor, the Securities Intermediary and the Collateral Agent, substantially  in the form attached as Exhibit B attached hereto (or such other form reasonably acceptable to the  Grantor, the Securities Intermediary and the Collateral Agent), with such changes as the parties  may agree, as may be amended, supplemented, modified, restated or replaced from time to time. “Securities Intermediary” means the institution serving as securities intermediary under  the Securities Account Control Agreement. “Security Interest” has the meaning set forth in Section 2.1. “Sub-Agent” has the meaning set forth in Section 4.3. “Tenant Improvements” means agricultural equipment, operations, crops and related  permanent plantings, irrigation facilities and water rights that are owned by tenants at such  property. “UCC” means the Uniform Commercial Code as in effect from time to time in the State of  New York.  Section 1.2 Interpretation. For all purposes of this Agreement, except as otherwise expressly provided or unless the  context otherwise requires:  (a) the terms defined in this Article shall have the meanings ascribed in this  Article and shall include the plural as well as the singular;  (b) all accounting terms used and not expressly defined herein shall have the  meanings given to them in accordance with United States generally accepted accounting  principles, and the term “generally accepted accounting principles” shall mean such  accounting principles which are generally accepted at the date or time of any computation  or at the date hereof, consistently applied;  (c) references to Exhibits, Articles, Sections, Schedules, paragraphs,  subparagraphs and clauses shall be construed as references to the Exhibits, Articles,  Sections, Schedules, paragraphs, subparagraphs and clauses of this Agreement;  

 

9  CHAR1\1753723v8 (d) the words “herein”, “hereto”, “hereof’ and “hereunder” and other words of  similar import refer to this Agreement as a whole and not to any particular Article, Section  or other subdivision;  (e) the words “include”, “includes” and “including” shall be construed to be  followed by the words “without limitation”; and  Article and Section headings are for the convenience of the reader and shall not be  considered in interpreting this Agreement or the intent of the parties hereto.  ARTICLE 2  SECURITY INTEREST  Section 2.1 Creation of Security Interest in Collateral.  As security for any and all obligations under the AgVantage Bonds issued pursuant to the  Bond Purchase Agreement and any other amounts that are due hereunder or thereunder from the  Grantor to the holders of AgVantage Bonds, the Grantor hereby assigns, transfers, pledges, and  grants to the Collateral Agent for the benefit of the Control Party a security interest in and  continuing lien on, subject to the terms of this Agreement, all of the Grantor’s right, remedy, title  and interest in and to the Collateral (the “Security Interest”).  The Grantor authorizes the  Purchaser to undertake any and all action to perfect the Security Interest created hereby, including,  without limitation, filing a UCC financing statement in form and substance, and in each  jurisdiction, necessary to perfect the Security Interest, and the Grantor waives any right of  objection to any of the Collateral Agent (at the written direction of the Control Party), the  Purchaser, or the Control Party undertaking such action or actions hereunder.  The Grantor shall,  not later than three (3) Business Days after either the issuance of each AgVantage Bond under the  Bond Purchase Agreement, or, so long as the AgVantage Bond Balance exceeds $0, upon  substitution or modification of any of the Collateral, (A) deliver to the Collateral Agent, and the  Collateral Agent, on behalf of the Control Party, shall hold, the Mortgage Documents and (B) to  the extent that the Collateral contains Qualified Substitute Collateral or other cash assets, deliver  a fully-signed copy of the Securities Account Control Agreement to the Collateral Agent.   Notwithstanding the foregoing, in the event that a recorded copy of any document or instrument  is not yet available from the applicable recorder or register within such time frame, Grantor shall  deliver an unrecorded copy to Collateral Agent, and Grantor shall subsequently deliver a recorded  copy to Collateral Agent within three (3) Business Days after Grantor’s receipt of the same.  Upon  occurrence of an Event of Default, the Collateral Agent, on behalf of the Control Party, shall have  the right (in its sole and absolute discretion), to the extent a register is maintained therefor, to  register the Collateral in the Collateral Agent’s own name as pledgee, or in the name of the  Collateral Agent’s nominee (as pledgee or as sub-agent) or to continue to hold the Collateral in the  name of the Grantor, endorsed or assigned in blank or in favor of the Collateral Agent.  Upon  cessation of such Event of Default, the Collateral Agent shall take such action as is necessary to  again cause the Collateral to be registered in the name of the Grantor (or its respective nominees).  Section 2.2 Maintenance of Qualified Collateral Schedule.  

 

10  CHAR1\1753723v8 Upon the issuance of any AgVantage Bond under the Bond Purchase Agreement, the  Grantor will deliver to the Collateral Agent (with a copy to Farmer Mac) a Qualified Collateral  Schedule setting forth the Collateral pledged hereunder, which Qualified Collateral Schedule shall  form a part of this Agreement.  The Grantor shall also cause a copy of the Qualified Collateral  Schedule to be attached as a schedule to each UCC financing statement or amendment thereto, if  appropriate, filed in connection with the grant of a security interest under this Agreement.   Following the date of issuance of any AgVantage Bond, if there have been additions, modifications  or reductions in the Collateral, then the Grantor shall, within forty-five (45) calendar days of the  end of the Fiscal Quarter during which additions, modifications or reductions occurred: (a) prepare  and deliver to the Collateral Agent (with a copy to Farmer Mac, if Farmer Mac is no longer serving  as Collateral Agent) a new Qualified Collateral Schedule setting forth the revised list of (i) all  Qualified Collateral and (ii) all loans or AMBS, whether or not meeting the Eligibility Criteria as  of such date of determination, and Mortgage Documents and other documents, instruments or liens  representing or securing such loans or AMBS, the value of which shall be at least equal to the  Minimum Required Collateralization Level; and (b) cause the filing of such UCC statements and  amendments thereto as may be necessary for the Grantor to comply with its undertakings pursuant  to Section 2.4.  Section 2.3 Qualified Collateral.  (a) On each Business Day prior to the termination of the Security Interest  pursuant to Section 9.1(i), (i) the value of the Qualified Loans, including any Qualified  Loans supporting Qualified AMBS, (as determined by the Grantor in accordance with the  immediately succeeding sentence) pledged hereunder as of the date of such determination  shall be at least equal to 100% of the AgVantage Bond Balance and (ii) the value of the  Qualified Collateral, including the value of the Qualified Loans referred to in clause (i) (as  determined by the Grantor in accordance with the immediately succeeding sentence)  pledged hereunder as of the date of such determination shall be at least equal to 110% of  the AgVantage Bond Balance (clauses (i) and (ii), collectively, the “Minimum Required  Collateralization Level”).  For the avoidance of doubt, for all purposes of this Agreement,  as of any date of determination, the value of any Qualified Loan and any other items  included in the Qualified Collateral shall be equal to the Market Value of such Qualified  Loan or item, as applicable, as of such date of determination.  (b) Subject to all applicable notice and cure periods, if the value of Qualified  Collateral (as determined by the Grantor in accordance with Section 2.3(a)) falls below the  Minimum Required Collateralization Level as of any Business Day, the Grantor shall  provide additional Qualified Collateral in which the Grantor has rights or the power to  transfer rights to a secured party as Collateral hereunder, such that the value of Qualified  Collateral (as determined by the Grantor in accordance with Section 2.3(a)) pledged to the  Collateral Agent under this Agreement as of such Business Day shall be at least equal to  the Minimum Required Collateralization Level.  (c) For as long as the value of Qualified Collateral (as determined by the  Grantor in accordance with Section 2.3(a)) is above the Minimum Required  Collateralization Level, the Grantor may freely withdraw, replace or substitute or sell,  dispose, pledge, assign or otherwise transfer any Qualified Collateral and any other item  

 

11  CHAR1\1753723v8 of Qualified Collateral then listed on the Qualified Collateral Schedule free and clear of  the Security Interest, pledge, lien and encumbrance created under this Agreement, in  accordance with Section 9.1 and 9.2, so long as any such withdrawal, replacement or  substitution or any such sale, disposition, pledge, assignment or other transfer would not  cause the value of the Qualified Collateral (as determined by the Grantor in accordance  with Section 2.3(a)) after such action to be below the Minimum Required Collateralization  Level (in the case of any replacement or substitution, after taking into account any  replacement or substitute Qualified Collateral provided by the Grantor to the Collateral  Agent simultaneously therewith, as evidenced by a revised Qualified Collateral Schedule  provided simultaneously by the Grantor to the Collateral Agent (with a copy to Farmer  Mac, if Farmer Mac is no longer serving as Collateral Agent), which revised Qualified  Collateral Schedule shall form a part of this Agreement.)  (d) At any time, the Grantor may pledge additional Qualified Collateral (in  which such party has rights or the power to transfer rights to a secured party) under this  Agreement by filing the appropriate UCC statements and delivering a Certificate of  Pledged Collateral to the Collateral Agent specifying such additional collateral.  (e) The Grantor shall certify to the Collateral Agent (with a copy to Farmer  Mac, if Farmer Mac is no longer serving as Collateral Agent), within forty-five (45)  calendar days of the end of each Fiscal Quarter, that (i) the value of Qualified Collateral  (as determined by the Grantor in accordance with Section 2.3(a)) shall have been at least  equal to the Minimum Required Collateralization Level as of the end of such Fiscal  Quarter, and (ii) the Grantor has provided adequate Qualified Collateral (in which the  Grantor has rights or the power to transfer rights to a secured party) to maintain the  Minimum Required Collateralization Level with respect to the AgVantage Bond Balance,  in each case, which certification shall be in substantially the form of a Certificate of  Pledged Collateral.  Section 2.4 Undertakings Regarding Collateral.  With respect to the Collateral, the Grantor undertakes and agrees as follows:  (a) to keep and maintain such Collateral free and clear of pledges, liens, and  encumbrances except for the security interest created by this Agreement and except for  Permitted Liens;  (b) to keep and maintain the Qualified Collateral in an amount at or above the  Minimum Required Collateralization Level;  (c) upon the pledge of Qualified AMBS, cash, U.S. Treasury securities,  securities issued or fully guaranteed by an agency or instrumentality of the United States,  or any Qualified Substitute Collateral, to establish and maintain the Securities Account and  to enter into the Securities Account Control Agreement;  (d) upon the establishment of the Securities Account and upon execution and  delivery of the Securities Account Control Agreement, and upon the delivery of the  Collateral to the Collateral Agent, to furnish to the Collateral Agent and the Bond  

 

12  CHAR1\1753723v8 Guarantor an opinion of counsel reasonably satisfactory to the Control Party that in the  opinion of such counsel such action has been taken as is necessary to create, perfect and  make effective an enforceable lien and first priority security interest of the Collateral Agent  in the Collateral; and  (e) to ratify any financing statements previously filed.  The Grantor, in connection with any modification of the Qualified Collateral Schedule on  any Business Day on which the value of the Qualified Collateral pledged hereunder and identified  in a schedule to the most recently filed UCC statement becomes less than the Minimum Required  Collateralization Level, shall cause the concurrent filing of such UCC financing statements and  amendments thereto as may be necessary or desirable to maintain the perfection of the Security  Interest (and any other security interest granted hereunder), naming the Collateral Agent or its  transferees or assigns as secured party and the Grantor as debtor.  The Collateral Agent shall have  no duty to monitor, prepare or file any UCC financing statement or amendments.  Section 2.5 Risk of Loss of Collateral.  The Grantor bears the risk of loss for any Collateral held in its possession prior to delivery  or in transit to or from the Grantor to the Collateral Agent or its agent.  In the event the Grantor  delivers any Collateral to the Collateral Agent or its agent, the duty of the Collateral Agent with  respect to such Collateral shall be solely to use reasonable care in the custody and preservation of  the security in its possession.  ARTICLE 3  COLLATERAL AGENT  Section 3.1 Appointment as Collateral Agent.  Subject to the terms and conditions hereof, the Grantor hereby appoints the Collateral  Agent and the Collateral Agent hereby accepts such appointment to act as Collateral Agent  pursuant to the terms of this Agreement.  The Collateral Agent acknowledges the grant of the  Security Interest upon the issuance of the AgVantage Bonds under the Bond Purchase Agreement,  accepts the trusts under this Agreement in accordance with the provisions of this Agreement, and  agrees to perform its duties in this Agreement to the end that the interests of the AgVantage Bond  Holder and the Bond Guarantor may be adequately and effectively protected.  Section 3.2 Resignation of the Collateral Agent.  The Collateral Agent may resign at any time by providing not less than thirty (30) days’  prior written notice to the Control Party and the Grantor.  If a successor Collateral Agent is not  appointed by the Grantor within thirty (30) days after the Collateral Agent gives notice of its intent  to resign, the retiring Collateral Agent may petition any court of competent jurisdiction to appoint  a successor Collateral Agent.  The Grantor shall notify the Control Party in writing upon the  appointment of a successor Collateral Agent and the agreement by such person to act as successor  Collateral Agent in connection with this Section 3.2.  

 

13  CHAR1\1753723v8 Section 3.3 Eligibility of Successor Collateral Agent.  Any successor Collateral Agent appointed by the Grantor pursuant to Section 3.2 shall be  a national banking association or banking corporation authorized under its laws of incorporation  and the laws of the jurisdiction in which it administers this Agreement to exercise the powers  required by this Agreement having at all times an aggregate capital surplus and undivided profits  of at least $1,000,000,000.00.  Section 3.4 Merger or Consolidation.  Any person (i) into which the Collateral Agent may be merged or consolidated, (ii) that  may result from any merger or consolidation to which the Collateral Agent shall be party, or  (iii) that may succeed to the properties and assets of the Collateral Agent substantially as a whole,  shall be the successor to the Collateral Agent under this Agreement without further act of any of  the parties to this Agreement.  Section 3.5 Duties and Responsibilities of the Collateral Agent.  (a) The Collateral Agent shall perform any and all duties required of it pursuant  to the terms of this Agreement.  (b) The Collateral Agent shall in the event it is so directed in writing by the  Control Party exercise any rights or remedies granted to the Collateral Agent under this  Agreement.  (c) The Collateral Agent will hold all Mortgage Documents and other  instruments or documents representing the loans in accordance with the procedures set  forth on Exhibit A attached hereto.  (d) The Collateral Agent makes no warranty or representation and shall have  no responsibility as to the content, enforceability, completeness, validity, sufficiency,  value, genuineness, ownership, or transferability of the Collateral or any Qualified  Substitute Collateral and will not be required to and will not make any representations as  to the validity or value of any of the Collateral or Qualified Substitute Collateral.  (e) The Collateral Agent shall have no duties or responsibilities, except such  duties and responsibilities as are specifically set forth in this Agreement, and no covenants  or obligations shall be implied in this Agreement against the Collateral Agent.  (f) No provision of this Agreement shall be construed to relieve the Collateral  Agent from liability for its own negligent action, its own negligent failure to act or its own  willful misconduct or bad faith, except that:  (i) the Collateral Agent shall not be liable for any error of judgment  made in good faith by a Responsible Officer of the Collateral Agent unless it shall  be proved that the Collateral Agent was negligent in ascertaining the pertinent facts;  

 

14  CHAR1\1753723v8 (ii) the Collateral Agent shall not be liable with respect to any action  taken or omitted to be taken by it in good faith in accordance with the written  direction of either Grantor or the Control Party relating to the time, method and  place of conducting any proceeding for any remedy available to the Collateral  Agent or exercising any trust or power conferred upon the Collateral Agent under  this Agreement;  (iii) no provision of this Agreement shall require the Collateral Agent to  expend or risk its own funds or otherwise incur any liability other than as provided  in Section 3.5(f) in the performance of its duties hereunder unless adequate  indemnity has been assured to it; and  (iv) the Collateral Agent shall not be obligated to take any legal action  hereunder which might in its judgment involve any expense or liability unless it has  been furnished with an indemnity satisfactory to it.  Section 3.6 Limitation on Liability of the Collateral Agent.  Subject to Section 3.5(f) with respect to clauses (a), (b) and (d) below, the Collateral Agent:  (a) shall not be liable for any error of judgment or for any act done or step taken  or omitted by it in good faith or for any mistakes of fact or law or for anything that it may  do or refrain from doing in connection herewith;  (b) may consult with counsel satisfactory to it and the opinion of such counsel  shall be full and complete authorization and protection in respect of any action taken  suffered or omitted by it hereunder in good faith and in the opinion of such counsel;  (c) shall not be responsible for delays or failures in performance resulting from  acts beyond its control, including, without limitation, strikes, lockouts, riots, acts of war or  terrorism, epidemics, nationalization, earthquakes, hurricanes or other natural disasters of  similar nature;  (d) may conclusively rely on and shall be fully protected in acting upon any  certificate, instrument, opinion, notice, letter, telegram or other document delivered to it  and that in good faith it reasonably believes to be genuine and that has been signed by the  proper party or parties; and  (e) shall not be liable for any consequential, indirect, special or punitive  damages under any circumstances.  Section 3.7 [Reserved].  ARTICLE 4  EVENTS OF DEFAULT  Section 4.1 Events of Default.  

 

15  CHAR1\1753723v8 The Collateral Agent may consider the Grantor in default hereunder upon the occurrence  and continuance of any of the following events or conditions beyond any applicable notice or cure  periods (each an “Event of Default”) hereunder:  (a) the occurrence and continuance of an “Event of Default” as such term is  defined in the Bond Purchase Agreement;  (b) the failure to maintain the Minimum Required Collateralization Level as of  any Business Day, which failure shall not have been cured within thirty (30) Business Days  of the earlier of (i) notice from Farmer Mac or the Purchaser requesting that it be cured, or  (ii) the first day on which Grantor becomes aware of such failure;  (c) breach of or failure to perform by the Grantor any other covenant, promise,  condition, obligation or liability contained or referred to herein which shall not have been  cured within forty-five (45) calendar days of the earlier of the date on which (i) Grantor  becomes aware of such breach or failure or (ii) notice thereof to the Grantor from the  Collateral Agent; or  (d) any representation or warranty made by Grantor in this Agreement shall  prove to have been false or misleading in any material respect as of the date made, provided  that Issuer shall have thirty (30) days following the written identification by Farmer Mac  or the Collateral Agent of the related misrepresentation or breach of warranty to cure the  related misrepresentation if unintentional if Farmer Mac and the Collateral Agent are  thereby place in the same risk position as if the misrepresentation had not been made.  The Collateral Agent shall not be deemed to have knowledge of any Event of Default until  written notice thereof is delivered to it.  Upon receipt of written notice of an Event of Default, the  Collateral Agent shall deliver the Notice of Exclusive Control required by the Securities Account  Control Agreement.  Section 4.2 Remedies Upon an Event of Default.  (a) If an Event of Default shall occur and be continuing, the Collateral Agent  shall (subject to Section 3.5), at the written direction of the Control Party, pursue any of  the following remedies, separately, successively, or cumulatively:  (i) take possession of any instruments, agreements, mortgages and  other documents (including the Mortgage Documents) representing the Collateral,  and all payment records relating to the Collateral, not already in the Collateral  Agent’s possession, immediately upon demand, and the Grantor grants to the  Collateral Agent the right (to the extent of the Grantor’s own right), for this  purpose, to enter into any premises where the Collateral or any part thereof may be  located during normal business hours and upon reasonable notice to the Grantor;  (ii) record each assignment of a deed of trust or mortgage included as a  Mortgage Document in the appropriate real property records;   

 

16  CHAR1\1753723v8 (iii) pursue any other remedy available at law or in equity to collect,  enforce, or satisfy obligations of the Grantor under the AgVantage Bonds and this  Agreement, including exercising its rights as secured creditor to collect income on  the Collateral or to sell, assign, transfer, lease, or otherwise dispose of the Collateral  whether or not the Collateral is in the Collateral Agent’s possession, in each case  subject to clause 4.2(a)(i) above; and  (iv) notify the Borrower or any other party obligated on the loans that,  as of any date of determination, were included in a Qualified Collateral Schedule  to pay any amounts owed directly to the Collateral Agent.  (b) If the Collateral Agent exercises its rights subject to Section 4.2(a) in respect  of the Collateral upon the occurrence and during the continuance of an Event of Default,  to the fullest extent permitted by applicable law:  (i) the Collateral Agent may sell, assign, transfer and deliver, at the  Collateral Agent’s option, the whole or any part of the Collateral at private or public  sale, at such prices as the Collateral Agent may, in good faith, deem best, without  public advertisement, and the Grantor waives notice of the time and place of sale,  except any notice that is required by law and may not be waived;  (ii) the Collateral Agent has no obligation to prepare any Collateral for  sale, and the Collateral Agent may sell any Collateral and disclaim any warranties  without adversely affecting the commercial reasonableness of the sale; and  (iii) the Collateral Agent may purchase any or all of the Collateral and  may apply any portion of the purchase price to reduce amounts owed by the Grantor  to the Collateral Agent as set forth in (c) below.  (c) Subject to Section 9-615 of the UCC, the Proceeds realized by the Collateral  Agent upon selling or disposing of the Collateral will be applied in the following order:  (i) first, for so long as a Bond Guarantor Default has occurred and is  continuing, to pay all reasonable costs and expenses of every kind incurred by the  Collateral Agent for the collection, sale and foreclosure of the Collateral (including  reasonable expenses incurred in the protection of Collateral Agent’s title to or lien  upon or right in connection therewith, reasonable expenses for out-of-pocket legal  fees in connection therewith or in making any such sale or sales, insurance,  commission for sales and guaranty); (ii) second, to the Collateral Agent for any amounts due and unpaid in  accordance with applicable agreements; (iii) third, to the Bond Guarantor in respect of any amounts previously  paid by the Bond Guarantor in respect of the Guaranteed Obligations; (iv) fourth, to interest owed under the AgVantage Bond; 

 

17  CHAR1\1753723v8 (v) fifth, to the principal amount owed under the AgVantage Bond; and (vi) sixth, any remaining Proceeds will be paid by the Collateral Agent  to the Grantor. Section 4.3 Appointment of Collateral Agent as Attorney-in-Fact; Sub-Agents.  (a) If an Event of Default occurs and is continuing, and without limiting any  other rights the Collateral Agent might have as a collateral agent under applicable law and  under this Agreement, the Grantor does hereby make, constitute and appoint the Collateral  Agent (and any sub-agent thereof appointed by the Collateral Agent for purposes of this  Agreement in accordance with Section 4.3(b) (each, a “Sub-Agent”)) its true and lawful  attorney-in-fact to deal with the Collateral and, in its name and stead to release, collect,  compromise, settle and release or record any mortgage or deed of trust that is a part of such  Collateral as fully as the Grantor could do if acting for itself. The powers herein granted  are coupled with an interest, and are irrevocable, and full power of substitution is granted  to the Collateral Agent in the premises.  (b) All services to be furnished by the Collateral Agent under this Agreement  may be furnished or subcontracted by the Collateral Agent to a Sub-Agent; provided, that  prior written notice is given to the Grantor of the appointment of such Sub-Agent and the  Grantor consents to such appointment within ten Business Days after its receipt of such  notice; provided, however, that: (i) the Collateral Agent shall remain ultimately responsible  for the provision of such services; and (ii) the Grantor shall not withhold or delay consent  to the appointment of an Excluded Agent.  ARTICLE 5  AGVANTAGE BOND DOCUMENTATION  Section 5.1 Maintenance of AgVantage Bond Documentation.  The Grantor shall maintain each of the following documents (the “AgVantage Bond  Documents”) as official records of the Grantor:  (a) a certified copy of the relevant portion of the consent or the minutes of the  meeting by or at which the Grantor’s board of directors or other governing body adopted  the AgVantage Bond Resolutions (as defined in Section 6.1(a)(i) below);  (b) a current copy of the schedules listing the Collateral pledged hereunder and  setting forth, among other things, the outstanding principal amount of such collateral as of  the most recently ended Fiscal Quarter; and  (c) a statement of the AgVantage Bond Balance.  ARTICLE 6  REPRESENTATIONS, WARRANTIES AND COVENANTS  

 

18  CHAR1\1753723v8 Section 6.1 Representations and Warranties.  The Grantor represents and warrants as of the date of this Agreement and as of each date  on which the Qualified Collateral Schedule is modified, that:  (a) it is authorized under applicable law and its charter, bylaws, or similar  governing documents, to execute and perform its obligations under the applicable  AgVantage Bond and this Agreement.  Without limiting the generality of the foregoing,  the Grantor represents that: (i) its board of directors or other governing body has adopted  resolutions (the “AgVantage Bond Resolutions”) (A) authorizing the execution and  delivery of any AgVantage Bond issued and this Agreement and the taking or  consummation of such other actions as necessary or appropriate to carry out the provisions  or intentions of any AgVantage Bond issued and this Agreement, and (B) adopting or  ratifying, as applicable, the Mortgage Guidelines; and (ii) the foregoing resolutions are  duly reflected in the official records of the Grantor;  (b) each AgVantage Bond is enforceable against the Grantor, and this  Agreement is valid, binding and enforceable against the Grantor, in each case, in  accordance with its terms subject to applicable bankruptcy, insolvency and similar laws  affecting creditors’ rights and subject to general principles of equity, regardless of whether  enforcement is sought in a proceeding in equity or at law; and  (c) with respect to each Qualified Loan that is pledged as Qualified Collateral,  (i) such Qualified Loan is secured by a first lien mortgage on the real estate securing the  Qualified Loan and was originated in accordance with the Mortgage Guidelines in all  material respects, and (ii) the Grantor has advised the Purchaser and Farmer Mac in writing  of any other loan secured by any portion of such real estate with an equal lien position to  the Qualified Loan.  The Grantor covenants that any interest obtained by the Purchaser,  Farmer Mac, or the Collateral Agent in any such Qualified Loan by operation of this  Agreement will be prior in right to any lien on such security of which the Purchaser and  Farmer Mac had not been so advised.  Section 6.2 Covenants. The Grantor covenants that:  (a) the Grantor has rights in the Collateral granted by it, and its title to the  portion of the Qualified Collateral that is required to meet the Minimum Required  Collateralization Level is free and clear of pledges, liens and encumbrances, except as  created hereunder and except for Permitted Liens, and the Grantor will maintain such  amount of Qualified Collateral free and clear of pledges, liens and encumbrances except as  created hereunder and except for the Permitted Liens as long as such Qualified Collateral  remains pledged hereunder;  (b) the Grantor has obtained all necessary approvals and consents before  pledging the Collateral under this Agreement;  

 

19  CHAR1\1753723v8 (c) each loan that, as of any date of determination, is included in a Qualified  Collateral Schedule is freely transferable by assignment or negotiation;  (d) each mortgage or deed of trust securing a note or bond included in the  Collateral has been recorded;  (e) the Grantor will provide the Collateral Agent with any reports or statements  that the Collateral Agent or the Control Party reasonably requests; provided, however, that  the filing of a report or statement via the Electronic Data Gathering, Analysis, and Retrieval  system of the Commission (or such subsequent official electronic filing system established  by the Commission) shall constitute delivery of such report or statement, as the case may  be, to the Collateral Agent or the Control Party upon notification by the Grantor to the  Collateral Agent or the Control Party, as the case may be.  (f) upon reasonable prior notice and during normal business hours, and with  approval of the Grantor (such approval to not be reasonably withheld), the Grantor will  permit the Collateral Agent or its designee to inspect or copy the AgVantage Bond  Documents and any other documents or evidence in the Grantor’s possession or control  relating to the Collateral;  (g) to the extent the Grantor, the Operating Partnership or the REIT receives a  credit rating from S&P, Moody’s or Fitch, the Grantor will promptly notify the Collateral  Agent of such credit rating and upon the occurrence of any change in the respective credit  rating by S&P, Moody’s or Fitch, as applicable;  (h) the Grantor will promptly notify the Collateral Agent of any change in  applicable law or regulations, or its respective charter, bylaws, or other governing  documents, or any legal or regulatory process asserted against the Grantor, that materially  affects or may materially affect the Grantor’s authority or ability to lawfully perform its  obligations under the Bond Purchase Agreement or this Agreement; and  (i) the Grantor will promptly notify the Collateral Agent of: (i) any material  adverse change in its business or financial condition or in the business or financial  condition of the Operating Partnership, the REIT or any other affiliate that would  materially and adversely affect the Collateral Agent’s interests; (ii) the execution of a  definitive agreement which by its terms provides for a reorganization, merger or  consolidation of the Grantor, the Operating Partnership or the REIT; (iii) any legal or  regulatory action (including any pending or threatened litigation or judgment) directly  involving the Grantor, the Operating Partnership or the REIT as a party that would  reasonably be expected to have a materially adverse financial or business impact on the  Grantor; or (iv) the occurrence of any Event of Default.  Section 6.3 Negative Covenants.  The Grantor covenants that the Grantor shall not, and shall not purport, propose or  undertake to, consent to any modification of any AgVantage Bond without the Collateral Agent’s  or Control Party’s prior written consent, which consent shall not be unreasonably withheld.  

 

20  CHAR1\1753723v8 ARTICLE 7  INDEMNIFICATION  Section 7.1 Indemnification by Grantor.  The Grantor agrees to indemnify the Collateral Agent or Sub-Agent for any loss, claim,  damage, liability, and expense (including reasonable attorneys’ fees, court costs and reasonable  expenses of litigation) incurred by the Collateral Agent (and any Sub-Agent), in the course of or  arising out of the Bond Purchase Agreement or this Agreement, any action relating to the  Collateral, or any action to which the Collateral Agent (and any Sub-Agent), may become subject  in connection with the AgVantage Bond Holder’s exercise of any right or remedy granted to it  under the Bond Purchase Agreement or this Agreement including, but not limited to, any  reasonable legal fees or out-of-pocket expenses incurred in connection with defending itself  against any claim or bringing any claim to enforce any indemnification or other obligation of the  relevant transaction parties, except to the extent that such loss, claim, damage, liability or expense  results from the Collateral Agent’s (and any Sub-Agent thereof) gross negligence or willful  misconduct; provided, however, that if Farmer Mac is appointed as a Sub-Agent of the Collateral  Agent under this Agreement, Farmer Mac’s indemnification pursuant to this Section 7.1 will be  limited solely to actions taken as Sub-Agent to the Collateral Agent.  The provisions of this Section  7.1 shall survive the termination of this Agreement and the resignation of the Collateral Agent.   ARTICLE 8  MISCELLANEOUS  Section 8.1 Successors and Assigns of Grantor Bound by Agreement.  All obligations, covenants, agreements and duties of the parties contained in this  Agreement shall bind the respective permitted successors and assigns of the parties, whether so  expressed or not.  Section 8.2 Amendments; Assignments.  (a) This Agreement will not be amended, supplemented, modified, restated, or  replaced in any manner, except with the written consent of each of the parties hereto.  (b) This Agreement may not be transferred, assigned, hypothecated or alienated  in any manner whatsoever, except with the prior written consent of each of the parties  hereto.  Section 8.3 No Liability for the Collateral Agent.  The Collateral Agent has no liability for acting in reliance upon any communication  (including a facsimile transmission, electronic transmission, telex, or similar communication)  reasonably believed by the Collateral Agent to be genuine or to be sent by an individual acting on  behalf of the Grantor.  The Collateral Agent has no fiduciary duty to any Person.  

 

21  CHAR1\1753723v8 Section 8.4 Governing Law.  This Agreement shall be construed and enforced according to the laws of the State of New  York, including, without limitation, Section 5-1401 of the General Obligations Law of the State  of New York, but without regard to the conflicts of law provisions thereof.  Section 8.5 Consent to Jurisdiction.  Each party to this Agreement submits for itself and in connection with its properties,  generally and unconditionally, to the nonexclusive jurisdiction of the United States federal court  located in The City of New York, Borough of Manhattan, for purposes of any legal proceeding  arising out of or relating to this Agreement or the transactions contemplated hereby.  Each party  to this Agreement irrevocably waives, to the fullest extent permitted by law, any objection which  it may now or hereafter have to the laying of the venue of any such proceeding brought in such a  court and any claim that any such proceeding brought in such a court has been brought in an  inconvenient forum.  Each party to this Agreement hereby consents to process being served in any  suit, action or proceeding with respect to this Agreement, or any document delivered pursuant  hereto, by the mailing of a copy thereof, by registered or certified mail, postage prepaid, return  receipt requested, to its respective address specified at the time for notices under this Agreement  or to any other address of which it shall have given written notice to the other party hereto.  The  foregoing shall not limit the ability of any party hereto to bring suit in the courts of any other  jurisdiction.  Section 8.6 Waiver of Jury Trial.  Each of the parties to this Agreement irrevocably and expressly waives any and all right to  a trial by jury with respect to any legal proceeding arising out of or relating to this Agreement or  any claims or transactions in connection herewith.  Each of the parties hereto hereby acknowledges  that such waiver is made with full understanding and knowledge of the nature of the rights and  benefits waived hereby.  Section 8.7 Entire Agreement.  This Agreement, the Schedules and Exhibits hereto and the other Bond Documents together  embody the entire agreement and understanding between the parties hereto relating to the subject  matter hereof and supersede all prior agreements between such parties that relate to such subject  matter.  Section 8.8 Limitation on Rights of Others.  The provisions of this Agreement are solely for the benefit of the Grantor and the Collateral  Agent and nothing in this Agreement, whether express or implied, shall be construed to give to  any other person any legal or equitable right, remedy or claim under or in respect of this Agreement  or any covenants, conditions or provisions contained herein.  Section 8.9 Severability.  

 

22  CHAR1\1753723v8 If any provision of, or obligation under, this Agreement, or the application thereof to any  person or under any circumstance, shall be invalid, illegal or unenforceable in any jurisdiction, the  validity, legality and enforceability of the remaining provisions of, and any obligations under, this  Agreement, or the application of such provision in any other jurisdiction shall not in any way be  affected or impaired thereby, and each provision of this Agreement shall be valid and enforceable  to the extent permitted by applicable law.  Section 8.10 Counterparts.  This Agreement and any amendments, supplements, modifications, restatements, or  replacements hereof, or waivers or consents hereto, may be executed in any number of  counterparts, and by different parties hereto in separate counterparts, each of which, when so  executed and delivered, shall be deemed to be an original and all of which counterparts, when  taken together, shall constitute one and the same instrument.  This Agreement shall become  effective upon the execution of a counterpart by each of the parties hereto.  Signatures to this  Agreement transmitted by electronic means shall be valid and effective to bind the party so signing.  A failure to deliver an execution original to this Agreement shall not affect the enforceability of  this Agreement, it being expressly agreed that each party hereto shall be bound by its own  electronically transmitted signature and accept the electronically transmitted signature of each of  the other parties hereto.  Section 8.11 No Waiver.  No failure on the part of the parties hereto to exercise, and no delay in exercising, and no  course of dealing with respect to, any right, power or privilege hereunder (or operate as an  acquiescence of any default or Event of Default hereunder) shall operate as a waiver thereof  (including by the Collateral Agent upon the occurrence and during the continuance of an Event of  Default), nor shall any single or partial exercise thereof or the exercise of any other right, power  or privilege operate as such a waiver.  Section 8.12 Remedies Cumulative.  No right, power or remedy of the parties hereunder shall be exclusive of any other right,  power or remedy, but shall be cumulative and in addition to any other right, power or remedy  thereunder or now or hereafter existing by law or in equity.  Section 8.13 Notices.  All demands, notices, instructions or other communications required or permitted to be  given hereunder shall be given in writing and shall be addressed as specified below as appropriate  except as otherwise provided herein. The address, telephone number, email address, or facsimile  number for any party may be changed at any time and from time to time upon written notice given  by such changing party to the other parties hereto in accordance with this Section 8.13. A properly  addressed notice or other communication shall be deemed to have been delivered to the party or  parties to which it is given at the time it is sent by registered or certified mail, postage prepaid,  return receipt requested addressed as set forth below, with a copy also to be sent by email or  facsimile (fax) transmission.  

 

23  CHAR1\1753723v8 If to the Grantor, to:  Gladstone Lending Company, LLC  c/o Gladstone Land Corporation  1521 Westbranch Drive, Suite 200  McLean, Virginia 22102  Fax: 703-287-5801  Attn: Michael Licalsi  with a copy to:  Bass Berry & Sims PLC  100 Peabody Place, Suite 1300  Memphis, TN 38103  Fax: 901-543-5946  Attention: Robert P. McDaniel, Jr.  If to the Purchaser, Collateral Agent or the Bond Guarantor, to:  Federal Agricultural Mortgage Corporation  1999 K Street, NW 4th Floor  Washington, DC 20006  Fax: 202-872-7713  Email: Agvdeals@farmermac.com  Attention: Executive Vice President – Chief Business Officer   with a copy to:  Federal Agricultural Mortgage Corporation  1999 K Street, NW 4th Floor  Washington, DC 20006  Fax: 202-872-7713  Email: Agvdeals@farmermac.com  Attention: Director – Institutional Credit  and a copy to:  Federal Agricultural Mortgage Corporation  1999 K Street, NW 4th Floor  Washington, DC 20006  Fax: 202-872-7713  Email: legal@farmermac.com  Attention: General Counsel  

 

24  CHAR1\1753723v8 Section 8.14 Amendment and Restatement.  The parties to the Existing Agreement each hereby agree that the Existing Agreement  automatically shall be deemed amended and restated in its entirety by this Agreement.  All  indebtedness, obligations, liabilities and liens created by the Existing Agreement shall continue  unimpaired and in full force and effect, as amended and restated in this Agreement.  This  Agreement is not a novation of the Existing Agreement, and this Agreement evidences the  obligations of the Grantor (as defined in the Existing Agreement) under the Existing Agreement  as continued and amended and restated hereby.  ARTICLE 9  TERMINATION OF SECURITY INTEREST  Section 9.1 Termination of Security Interest.  The Security Interest in respect of any item of Collateral shall terminate, and all rights to  any item of Collateral shall revert to the Grantor upon: (i) the termination of the Bond Purchase  Agreement in accordance with its terms; or (ii) the withdrawal, replacement or substitution or the  sale, disposition, pledge, assignment or other transfer, of such item of Collateral by the Grantor  pursuant to, and in accordance with, Section 2.3; provided that this Agreement shall survive any  permitted assignment of the Bond Purchase Agreement and any AgVantage Bond.  Section 9.2 Evidence of Termination.  Upon the termination of this Agreement, the Collateral Agent will execute and deliver to  the Grantor such documents as the parties shall prepare at Grantor’s own expense and reasonably  request to evidence the termination of this Agreement.  Without limiting the foregoing, upon the  occurrence of a withdrawal, replacement, substitution, sale, disposition, pledge, assignment or  other transfer under Section 9.1(ii) or Section 2.3(c) above, Collateral Agent will cooperate with  Grantor in the release or termination (or partial release or termination) of all filings or instruments  evidencing any applicable lien or liens in favor of Collateral Agent with respect to such collateral.   Without limiting the foregoing, upon the request of Grantor in such event, Collateral Agent shall  promptly terminate (or authorize Grantor to terminate) any UCC financing statement(s) necessary  to evidence the release of such lien(s).  [Signature Pages Follow]  

 

 

 

 

 

SI-1  CHAR1\1753723v8 Schedule I  ELIGIBILITY CRITERIA  Agricultural real estate can consist of land, buildings and fixtures used in agricultural production,  processing or storage. Each such mortgage loan will:  • be secured by a first lien fee simple or leasehold mortgage on agricultural real estate  (land, buildings and fixtures used in agricultural production, processing or storage)  located in the United States (or by a junior lien on such agricultural real estate, so long  as the Grantor holds each lien on such agricultural real estate that is senior to such  junior lien and each mortgage loan secured by any such senior lien is pledged by the  Grantor under this Agreement);  • be an obligation of a citizen or national of the United States or an alien lawfully  admitted for permanent residence in the United States or a private corporation, limited  liability company, limited partnership or partnership whose members, stockholders, or  partners holding a majority interest in the corporation or partnership are such  individuals;  • have a combined loan to value ratio of not greater than 66 percent, as determined by  the most recently performed appraisal by, or prepared by certified appraisers for the  benefit of the Grantor.  For the purpose of this requirement, the combined loan to value  ratio will be calculated by dividing (a) the sum of (i) the unpaid balance of the loan and  (ii) the sum of the unpaid balances of all other cross-collateralized loans pledged by the  Grantor under this Agreement, by (b) the combined appraised value of all real estate  collateral securing the loan and all other cross-collateralized loans pledged by the  Grantor under this Agreement;  • if secured by:   not more than 2,000 acres, have an unpaid principal balance not greater than  $75 million (or any higher amount permitted by Farmer Mac and communicated to  Grantor in writing);   more than 2,000 acres (or any larger acreage amount permitted by Farmer Mac and  communicated to Grantor in writing), have an interest pledged to the Collateral  Agent not greater than $13.4 million (or any higher amount permitted by Farmer  Mac and communicated to Grantor in writing);  • be accruing interest and not more than 30 days delinquent in the payment of principal  or interest;   • have all taxes and assessments paid prior to delinquency;  • contain cross-default provisions in the related mortgage loan documents, instruments,  and agreements, providing that any default or Event of Default in this Agreement or  

 

SI-2  CHAR1\1753723v8 the Bond Purchase Agreement shall also constitute a default under the related mortgage  loan and providing for immediate acceleration of the balance due on such mortgage  loan without further notice, thereby entitling the Collateral Agent or Control Party, as  applicable, to all rights and remedies under the terms of such mortgage loan;  • encumber any improvements with a first priority lien by and through the mortgage. For  purposes of this paragraph, “improvements” means: any buildings, improvements,  equipment, fixtures and permanent plantings located in or on or appurtenant to the  collateral, and all additions, replacements, and improvements hereafter made to or  placed in or on the collateral; all rights-of-way, easements, rents, issues, profits,  income, proceeds and general intangibles from the collateral, tenements,  hereditaments, remainders, reversions, privileges and appurtenances  belonging unto   the collateral, however evidenced which are used or enjoyed in connection with the real  property now or hereafter owned or belonging to the same or which hereafter may be  acquired and so used or enjoyed;  all water and water rights now owned or hereafter  acquired  whether such water and water rights are riparian, appropriative or otherwise  and whether or not appurtenant to the collateral, along with all ditch and ditch rights  and any shares of stock, licenses, permits and contracts evidencing such water or ditch  rights, and all wells, reservoirs, dams, embankments or fixtures relating to the  collateral; all windmills, pumps, irrigation equipment, motors,  engines, and devices of  every kind now or hereafter  used for or in connection with the irrigation of the  collateral, or for stock watering or domestic purposes thereon,  and all grain bins and  storage bins, which are owned  by the Grantor  and which are located on the collateral  described above together with all additional accessions, replacements, improvements,   repairs and substitutions to the collateral and the proceeds thereof and all other fixtures  now or hereafter located upon the collateral, all of which are declared to be appurtenant  to the collateral, or incident to the ownership thereof, or used in connection therewith.   Notwithstanding the foregoing or anything herein to the contrary, the Grantor is not  granting any lien or security interest with respect to, and references to the pledged real  property or improvements shall not include, any Tenant Improvements; and  • contain provisions, consistent with standard industry practice, requiring the upon  default of the mortgage loan, (i) all leases and security deposits on the related collateral  shall be assigned to the lender and (ii) all rents and revenues from the related collateral  shall be assigned to the lender.  

 

SII-1  CHAR1\1753723v8 Schedule II  AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT DATED AS  OF DECEMBER 10, 2020   CERTIFICATE OF PLEDGED COLLATERAL FILED WITH  FEDERAL AGRICULTURAL MORTGAGE CORPORATION, Collateral Agent  , Chief Executive Officer [or Chief Financial Officer or  Controller] and  , Vice-President [Chief Financial Officer]  [Treasurer], of Gladstone Land Corporation, the Manager of Gladstone Land Partners, LLC, the  General Partner of Gladstone Land Limited Partnership, the sole member and manager of Grantor,  hereby certify to the Control Party and the Collateral Agent under the above-mentioned Pledge  and Security Agreement as amended, restated, extended, supplemented or otherwise modified in  writing from time to time to the date hereof (herein called the “Pledge Agreement”) as follows:1 1. The value of the Qualified Collateral certified hereby and  pledged to the Collateral Agent, as shown on Schedule A hereto, is  ............................................................................ $  2. The value of the Qualified Collateral certified hereby and  being pledged to the Collateral Agent, as shown on Schedule B hereto, is  ......................................................... $  3. The aggregate principal amount of the AgVantage Bond(s) outstanding at the date hereof is ......................................... $  4. The aggregate amount, if any, of the AgVantage Bond(s)  to be issued on the basis of this Certificate is .................... $  5. The sum of amounts in items 3 and 4 is ............................. $  6. The aggregate amount by which the value of Qualified  Collateral exceeds the aggregate principal amount of the  AgVantage Bond(s) outstanding (the sum of items 1 and 2 minus item 5) is .................................................................. $  1 Schedule A and Schedule B should each be in the form of an Excel spreadsheet, produced by the Grantor and attached  to the certificate. Schedule A should list (x) all Qualified Collateral and (y) all loans or AMBS, whether or not meeting  the Eligibility Criteria as of such date of determination, and Mortgage Documents and other documents, instruments  or liens representing or securing such loans or AMBS previously pledged under this facility and Schedule B should  list (x) all Qualified Collateral and (y) all loans or AMBS, whether or not meeting the Eligibility Criteria as of such  date of determination, and Mortgage Documents and other documents, instruments or liens representing or securing  such loans or AMBS being added to collateral pool in connection with the new financing for which this certificate is  being provided.  

 

SII-2  CHAR1\1753723v8 7. To the knowledge of the undersigned, each Qualified Loan  included as Qualified Collateral satisfies the Eligibility  Criteria set forth in the Pledge Agreement.  8. The value of the Qualified Collateral pledged to the  Collateral Agent satisfies the Minimum Required  Collateralization Level.  9. So far as is known to the undersigned, no Event of Default  exists.  

 

SII-3  CHAR1\1753723v8 All terms which are defined in the Pledge Agreement are used herein as so defined.  Dated:    

 

A-1  CHAR1\1753723v8 Exhibit A  LOAN FILE CUSTODY PROCEDURES  1. Delivery of Custodial Files.  (a) The Grantor is required to deliver to the Collateral Agent any and all documents or records relating to all loans that, as of any date of determination,  were included in a Qualified Collateral Schedule (with respect to any such loan, a “Loan File”),  and the Collateral Agent shall hold such Loan Files in accordance with the terms of this Exhibit  A. (b) From time to time, the Grantor may forward to the Collateral Agent  additional original documents or additional documents evidencing an assumption,  modification, consolidation or extension of a loan.  Upon receipt of such documents by the  Collateral Agent, such documents shall constitute a part of the Loan File for the related  loan.  The Collateral Agent is entitled to rely upon the Qualified Collateral Schedule  provided as of the most recent date of delivery as the conclusive schedule in its review of  the submitted Loan File.  The Collateral Agent is under no duty to verify the existence of  any endorsements to the policy of title insurance or the existence, validity or priority of  any liens of security interest in any personal property securing the related loan.  (c) Within thirty (30) days after the later of (i) the date of delivery of the Loan  Files by the Grantor and (ii) receipt by the Collateral Agent of check-in instructions for the  Loan Files and, if applicable, the Mortgage Documents and any other instruments and/or  documents contained in the Loan Files, from the Grantor, the Collateral Agent shall review  the Loan Files received by it in accordance with the check-in instructions, and shall deliver  to the Bond Guarantor, the Grantor or their designees a certification (a “Trust Receipt”)  substantially in the form agreed to by the parties hereto and the Bond Guarantor, as to each  loan listed on the Qualified Collateral Schedule.  The Collateral Agent shall not be  responsible to verify the validity, sufficiency or genuineness of any document in any Loan  File.  2. Custody of Loan Documents. The Collateral Agent shall segregate and maintain  continuous custody of all documents constituting each Loan File received by it in secure and fire- resistant facilities in accordance with its customary standards for such custody and shall provide  the Grantor written notice of such location.  3. Release for Servicing. From time to time and as appropriate for the foreclosure or  servicing of any of the loans or in connection with a loan which has been paid in full, the Collateral  Agent is hereby authorized, upon delivery by the Grantor to the Collateral Agent, with a copy to  the parties hereto and the Bond Guarantor of a written request in a form agreed upon by the parties  hereto and the Bond Guarantor (a “Request for Release of Loan File”), to release to the Grantor  the related Loan Files.  The Collateral Agent shall have no duties or obligations and no liability  with respect to any Loan File so released to the Grantor for any period of time so released to the  Grantor.  In the event that the Grantor returns a Loan File or other documents previously released  by the Collateral Agent to the Grantor the Loan File or other documents so returned shall once  again be subject to the provisions of the Pledge and Security Agreement.  

 

A-2  CHAR1\1753723v8 4. Copies of Loan Documents. Upon the written request of any of the Grantor or the  Control Party and at the cost and expense of the Grantor under the Pledge and Security Agreement,  the Collateral Agent shall provide the requesting Grantor, the Control Party or their designees with  copies of any documents in the possession of the Collateral Agent relating to the Collateral. 5. Examination of Loan Files.  Upon five (5) Business Days prior written notice to  the Collateral Agent, the Bond Guarantor, the Grantor, or any of their agents, accountants,  attorneys, auditors and prospective purchasers will be permitted during normal business hours to  examine the Loan Files and any other documents, records and papers in the possession of or under  the control of the Collateral Agent relating directly to the administration of any or all of the loans.   Any costs associated with such examination shall be paid by the Grantor under the Pledge and  Security Agreement. 6. Attachment of Loan Files.  In the event that any party to the Pledge and Security  Agreement shall be served by a third party with any type of levy, attachment, writ or garnishment  with respect to any document contained in a Loan File, or in the event any third party shall institute  any court proceeding by which any document included in the Loan Files shall be required to be  delivered otherwise than in accordance with the provisions of the Pledge and Security Agreement,  the party which received such service shall immediately deliver or cause to be delivered to the  other parties hereto, and to the Grantor and the Bond Guarantor, copies of all court papers, orders,  documents and other materials concerning such proceedings.  The Collateral Agent shall continue  to hold and maintain all documents contained in the Loan Files received by it pursuant to the  provisions of the Pledge and Security Agreement pending an order of a court of competent  jurisdiction permitting or directing disposition hereof. Upon final determination of such court, the  Collateral Agent shall dispose of such documents held by it as directed by such determination or,  if no such determination is made, in accordance with the provisions of the Pledge and Security  Agreement.  Expenses of the Collateral Agent incurred as a result of the attachment of any  document contained in a Loan File shall be paid pursuant to the Pledge and Security Agreement.   This subsection shall not be deemed to create any rights in property belonging to the Grantor or  the Bond Guarantor in favor of any third party. 

 

B-1  CHAR1\1753723v8 Exhibit B  SECURITIES ACCOUNT CONTROL AGREEMENT  among  [ ],  [ ] and  [ ],  AS SECURITIES INTERMEDIARY  Dated as of    

 

i  CHAR1\1753723v8 TABLE OF CONTENTS  Page  ARTICLE 1 DEFINITIONS; INTERPRETATIONS ............................................................... 1  Section 1.1 Certain Terms Defined ............................... Error! Bookmark not defined. Section 1.2 Interpretation .............................................. Error! Bookmark not defined. ARTICLE 2 THE ACCOUNT ..................................................................................................... 3  Section 2.1 UCC Provisions ......................................... Error! Bookmark not defined. Section 2.2 Indorsements .............................................. Error! Bookmark not defined. Section 2.3 Priority of Lien ........................................... Error! Bookmark not defined. ARTICLE 3 CONTROL .............................................................................................................. 4  Section 3.1 Grant of Control ......................................... Error! Bookmark not defined. Section 3.2 Grantor’s Rights in Account ...................... Error! Bookmark not defined. ARTICLE 4 REPRESENTATIONS AND WARRANTIES; UNDERTAKINGS .................. 4  Section 4.1 The Representations and Warranties of the Securities Intermediary . Error!  Bookmark not defined. Section 4.2 Undertakings of the Securities Intermediary ........... Error! Bookmark not  defined. ARTICLE 5 LIMITATION OF RESPONSIBILITY; INDEMNIFICATION ....................... 5  Section 5.1 Limitation of Responsibility of Securities Intermediary Error! Bookmark  not defined. Section 5.2 Indemnification of Securities Intermediary ............. Error! Bookmark not  defined. ARTICLE 6 MISCELLANEOUS ............................................................................................... 6  Section 6.1 Successors and Assigns of Grantor Bound By Agreement ................ Error!  Bookmark not defined. Section 6.2 Amendments; Assignments ....................... Error! Bookmark not defined. Section 6.3 Governing Law .......................................... Error! Bookmark not defined. Section 6.4 Customer Agreement ................................. Error! Bookmark not defined. Section 6.5 Consent to Jurisdiction ............................... Error! Bookmark not defined. Section 6.6 Waiver of Jury Trial ................................... Error! Bookmark not defined. Section 6.7 Future Agreement ...................................... Error! Bookmark not defined. Section 6.8 Limitation on Rights of Others .................. Error! Bookmark not defined. Section 6.9 Notices ....................................................... Error! Bookmark not defined. Section 6.10 Severability ................................................ Error! Bookmark not defined. Section 6.11 Counterparts ............................................... Error! Bookmark not defined. Section 6.12 No Waiver .................................................. Error! Bookmark not defined. Section 6.13 Remedies Cumulative ................................ Error! Bookmark not defined. ARTICLE 7 TERMINATION OF AGREEMENT ................................................................... 8  Section 7.1 Termination of this Agreement .................. Error! Bookmark not defined. 

 

B-ii  CHAR1\1753723v8 Section 7.2 Evidence of Termination............................ Error! Bookmark not defined. 

 

B-1  CHAR1\1753723v8 THIS SECURITIES ACCOUNT CONTROL AGREEMENT (the “Agreement”) is dated  as of [________________], 20[__], between Gladstone Lending Company, LLC, a Delaware  limited liability company (the “Grantor”), [______________], as collateral agent (in such  capacity, the “Collateral Agent”), and [______________] as securities intermediary (in such  capacity, the “Securities Intermediary”).  WITNESSETH  WHEREAS, the Grantor has issued one or more AgVantage Bonds pursuant to an  AgVantage Bond Purchase Agreement dated as of [____________] (as amended, supplemented  or modified from time to time, the “AgVantage Bond”);  WHEREAS, the Grantor desires to grant to the Collateral Agent, for the benefit of the  AgVantage Bond Holder, a security interest in the collateral hereinafter described as security for  the obligations of the Grantor under the AgVantage Bond as more particularly described below;  WHEREAS, the Grantor has entered into the Amended and Restated Pledge and Security  Agreement, dated as of December 10, 2020 (as amended, supplemented or modified from time to  time, the “Security Agreement”), with the Collateral Agent;  WHEREAS, the Grantor, the Securities Intermediary and the Collateral Agent are entering  into this Agreement to provide for the control of the Collateral and to perfect the security interest  of the Collateral Agent therein.  NOW THEREFORE, for valuable consideration and intending to be legally bound, the  Grantor, the Securities Intermediary and the Collateral Agent do hereby enter into this Agreement.  ARTICLE 1  DEFINITIONS; INTERPRETATIONS  SECTION 1.1 Certain Terms Defined.  In this Agreement, the following terms shall  have the meanings specified in this Section for all purposes of this agreement, unless otherwise  expressly provided.  “Account” means a securities account number ___________ established at  [____________], which is a securities account within the meaning of Section 8-501(a) of the UCC. “Agreement” means this instrument as originally executed and delivered and as the same  may be amended, supplemented, modified, restated or replaced from time to time. “AgVantage Bond” has the meaning in the first recital of this Agreement.   “Assignee” has the meaning set forth in Section 6.2(c) hereof “Bond Purchase Agreement” means the AgVantage Bond Purchase Agreement dated as of [____________] among the Grantor, the Purchaser and Farmer Mac, as the same may be  

 

B-2  CHAR1\1753723v8 amended, restated, extended, supplemented or otherwise modified in writing from time to time in  accordance with the terms thereof. “Business Day” means a day (other than a Saturday or Sunday) on which commercial  banks and foreign exchange markets are open for business in New York, New York. “Collateral” means the Account, cash, U.S.  Treasury securities or securities fully  guaranteed by an agency or instrumentality of the United States, security entitlements, financial  assets, credit balances and other assets and property and all instruments, in each case from time to  time deposited or held in or transferred or credited to or carried in the Account. “Collateral Agent” shall mean [______________].  “Entitlement Order” has the meaning set forth in Section 3.1 hereof. “Event of Default” has the meaning set forth in Section 3.1 of the Security Agreement. “Notice of Exclusive Control” has the meaning set forth in Section 3.2 hereof. “Responsible Officer” shall mean any officer within the corporate trust department of the  Collateral Agent, including any vice president, assistant vice president, secretary, assistant  treasurer, trust officer or any other officer of the Collateral Agent who customarily performs  functions similar to those performed by persons who at the time shall be officers, respectively, or  to whom any corporate trust matter is referred because of such person’s knowledge of and  familiarity with the particular subject and, in each case, who shall have responsibility for the  administration of the Security Agreement. “Securities Intermediary” has the meaning set forth in the first paragraph of this  Agreement. “Security Agreement” has the meaning in the third (3rd) recital of this Agreement. “Trade” has the meaning set forth in Section 3.2 hereof. “UCC” means the Uniform Commercial Code as in effect in the State of New York SECTION 1.2 Interpretation.  For all purposes of this Agreement except as otherwise  expressly provided or unless the context otherwise requires:  (a) the terms defined in this Article shall have the meanings ascribed in this  Article and shall include the plural as well as the singular;  (b) all accounting terms used and not expressly defined herein shall have the  meanings given to them in accordance with United States generally accepted accounting  principles, and the term “generally accepted accounting principles” shall mean such  accounting principles which are generally accepted at the date or time of any computation  or at the date hereof;  

 

B-3  CHAR1\1753723v8 (c) references to Exhibits, Articles, Sections, paragraphs, subparagraphs and  clauses shall be construed as references to the Exhibits, Articles, Sections, paragraphs,  subparagraphs and clauses of this Agreement;  (d) the words “herein”, “hereof’ and “hereunder” and other words of similar  import refer to this Agreement as a whole and not to any particular Article, Section or other  subdivision;  (e) the words “include”, “includes” and “including” shall be construed to be  followed by the words “without limitation”;  (f) Article and Section headings are for the convenience of the reader and shall  not be considered in interpreting this Agreement or the intent of the parties hereto; and  (g) capitalized terms used herein and not otherwise defined shall have the  meanings ascribed in the Bond Purchase Agreement.  ARTICLE 2  THE ACCOUNT  SECTION 2.1 UCC Provisions.  Each party hereto agrees that the Account constitutes  a “securities account” within the meaning of Article 8 of the UCC and with respect to the property  from time to time credited to the Account, the Securities Intermediary is the “securities  intermediary” and that the Grantor is the “entitlement holder” within the meaning of the UCC.  For  purposes of perfecting the security interest of the Collateral Agent in any property (at any time  now or hereafter held in or credited to the Account), the Securities Intermediary hereby  acknowledges that it holds and will hold such property as collateral for the benefit of the Collateral  Agent, subject to the terms and conditions of this Agreement.  All property delivered to the  Securities Intermediary and directed by the Grantor to be included in the Account pursuant to the  terms of the Security Agreement shall be promptly credited to the Account.  All parties agree that  the Account and all property held by the Securities Intermediary in the Account, including without  limitation cash or credit balances, will be treated as investment property under Article 9 of the  UCC and financial assets under Article 8 of the UCC.  SECTION 2.2 Indorsements.  The Grantor agrees that all securities or other property  underlying any financial assets credited to the Account shall be registered in the name of the  Securities Intermediary, indorsed to the Securities Intermediary or in blank or credited to another  securities account maintained in the name of the Securities Intermediary and that in no case will  any financial asset credited to the Account be registered in the name of the Grantor, payable to the  order of the Grantor or specially indorsed to the Grantor.  The Securities Intermediary agrees that  it shall promptly (and in any event within five (5) Business Days) notify the Collateral Agent and  the Grantor in writing after becoming aware (using reasonable care in the Securities Intermediary’s  normal business practices) that any financial asset credited to the Account is registered or indorsed  in contravention of this Section 2.2; provided, however, that the Securities Intermediary shall have  no liability hereunder for the failure to deliver such notice except to the extent such failure results  from its gross negligence or willful misconduct.  

 

B-4  CHAR1\1753723v8 SECTION 2.3 Priority of Lien.  The Securities Intermediary hereby acknowledges the  security interest granted to the Collateral Agent by the Grantor.  The Securities Intermediary  hereby waives and releases all liens, encumbrances, claims and rights of setoff it may have against  the Collateral or any credit balance in the Account and agrees that it will not assert any such lien,  encumbrance, claim or right against the Account (including any financial asset carried in the  Account or any credit balance in the Account) or any other Collateral, except for the right to be  reimbursed for amounts advanced to settle authorized transactions under the Security Agreement.  ARTICLE 3  CONTROL  SECTION 3.1 Grant of Control.  Subject to Section 3.2 below, the Securities  Intermediary will comply with all notifications it receives directing it to transfer or redeem any  property in the Account (each an “Entitlement Order”) or other directions concerning the  Account (including, without limitation, directions to distribute to the Collateral Agent proceeds of  any such transfer or redemption or interest or dividends on property in the Account) to the extent  directed by the Collateral Agent without further consent from the Grantor or any other person.  The  Securities Intermediary will not agree with any third party that the Securities Intermediary will  comply with Entitlement Orders concerning the Collateral originated by such third party without  the prior written consent of the Collateral Agent and, unless an Event of Default has occurred and  is continuing, the Grantor.  SECTION 3.2 Grantor’s Rights in Account.  Until the Securities Intermediary  receives a notice from the Collateral Agent in the form of Exhibit A attached hereto (a “Notice of  Exclusive Control”) that the Collateral Agent will exercise exclusive control over the Account,  the Securities Intermediary shall: (i) distribute to the Grantor all interest and regular cash dividends  on property in the Account, if any, (ii) allow the Grantor to exercise all voting rights, if any, relating  to the security entitlements and financial assets credited to the Account and (iii) settle purchases,  sales, free receipts, free deliveries, exchanges, substitutions and other transactions initiated by  Grantor or Grantor’s authorized representatives (collectively, “Trades”, and each individually, a  “Trade”).  The Grantor shall be solely responsible to comply with the valuation requirements on  the Collateral described in the Security Agreement.  If the Securities Intermediary receives from  the Collateral Agent a Notice of Exclusive Control, the Securities Intermediary will cease (a)  distributing to the Grantor any interest and dividends on property in the Account, (b) allowing the  Grantor to exercise any voting rights and (c) settling Trades initiated by Grantor or Grantor’s  authorized representatives.  The Collateral Agent may deliver to the Securities Intermediary a  Notice of Exclusive Control only if an Event of Default has occurred and is continuing.  ARTICLE 4  REPRESENTATIONS AND WARRANTIES; UNDERTAKINGS  SECTION 4.1 The Representations and Warranties of the Securities  Intermediary.  The Securities Intermediary hereby represents and warrants to the Grantor and the  Collateral Agent that:  

 

B-5  CHAR1\1753723v8 (a) the Account has been established in the name of the Grantor as recited  above;  (b) the Account statements to be provided from time to time to the Grantor  pursuant to this Agreement will contain a complete and accurate statement of the “financial  assets,” as defined in Article 8 of the UCC, maintained in the Account, which account has  been titled to reflect the security interest of the Collateral Agent therein;  (c) there are no claims to or interests in the Account arising by, through or from  the Securities Intermediary (other than those expressly permitted hereby) and, to the best  of a Responsible Officer of the Securities Intermediary’s knowledge, there is no other claim  to or interest in the Account except for the claims and interest of the Collateral Agent and  Grantor in the Account; and  (d) valid and legally binding “security entitlements,” as defined in Article 8 of  the UCC, have been created with respect to the financial assets to be carried in the Account  and pledged to the Collateral Agent pursuant to the Security Agreement, and the Securities  Intermediary hereby acknowledges the creation and existence of such security entitlements.  SECTION 4.2 Undertakings of the Securities Intermediary.  The Securities  Intermediary hereby undertakes as follows:  (a) to send copies of: (i) all monthly statements concerning the Account to each  of Grantor and the Collateral Agent at their respective addresses set forth in the heading of  this Agreement and (ii) any other information concerning the Account or Collateral  reasonably requested by the Collateral Agent to the Collateral Agent at the address set forth  in the heading of this Agreement;  (b) to provide to the Collateral Agent with online access to the Account upon  execution of such documentation as the Securities Intermediary shall reasonably request;  and  (c) upon receipt of written notice of any lien, encumbrance or adverse claim  against the Account or in any financial asset carried therein, to make reasonable efforts to  notify the Collateral Agent and the Grantor thereof.  ARTICLE 5  LIMITATION OF RESPONSIBILITY; INDEMNIFICATION  SECTION 5.1 Limitation of Responsibility of Securities Intermediary.  The Securities Intermediary shall have no responsibility or liability to the Collateral Agent  for complying with Trade directions from the Grantor, or the Grantor’s authorized representatives,  which are received by the Securities Intermediary before the Securities Intermediary receives a  Notice of Exclusive Control.  The Securities Intermediary shall have no responsibility or liability  to the Grantor for (i) complying with any Notice of Exclusive Control or (ii) for complying with  Entitlement Orders concerning the Collateral originated by the Collateral Agent.  The Securities  

 

B-6  CHAR1\1753723v8 Intermediary shall have no responsibility or liability to the Collateral Agent with respect to the  value of the Collateral.  The Securities Intermediary shall have no duty to investigate or make any  determination as to whether an Event of Default exists under any agreement between the Grantor  and the Collateral Agent and shall comply with all notices whether or not it believes that any such  Event of Default exists.  This Agreement does not create any obligation or duty of the Securities  Intermediary other than those expressly set forth herein.  SECTION 5.2 Indemnification of Securities Intermediary.  The Grantor hereby  agrees to indemnify, defend and hold harmless the Securities Intermediary, its directors, officers,  agents and employees against any and all claims, causes of action, liabilities, lawsuits, demands  and damages, including without limitation, any and all court costs and reasonable attorney’s fees,  in any way related to or arising out of or in connection with this Agreement or any action taken or  not taken pursuant hereto, except to the extent as a result of the Securities Intermediary’s gross  negligence or willful misconduct.  ARTICLE 6  MISCELLANEOUS  SECTION 6.1 Successors and Assigns of Grantor Bound By Agreement.  All  obligations, covenants, agreements and duties of the Grantor contained in this Agreement shall  bind the permitted successors and assigns of the Grantor, whether so expressed or not.  SECTION 6.2 Amendments; Assignments.  (a) This Agreement will not be amended, modified, restated, supplemented or  replaced in any manner, except with the written consent of the Grantor, the Securities  Intermediary and the Collateral Agent.  (b) Subject to clause (c) below, this Agreement may not be transferred,  assigned, hypothecated or alienated in any manner whatsoever, except with the prior  written consent of the Grantor, the Securities Intermediary and the Collateral Agent.  (c) The Grantor hereby agrees that, in the event that the Collateral Agent  assigns, transfers or conveys its rights and duties under the Security Agreement to any party  (the “Assignee”), the Collateral Agent shall have the right to assign and transfer this  Agreement and the control created hereby to the Assignee, and the Grantor and the  Securities Intermediary hereby consent to such assignment and transfer.  SECTION 6.3 Governing Law.  This Agreement shall be construed and enforced  according to the laws of the State of New York, including, without limitation, Section 5-1401 of  the General Obligations Law of the State of New York, but otherwise without regard to the  conflicts of law provisions thereof.  The parties hereto agree that the jurisdiction of the Account is  the State of New York.  SECTION 6.4 Customer Agreement.  In the event of a conflict between this  Agreement and any other agreement between the Securities Intermediary and the Grantor, the  terms of this Agreement will prevail.  Regardless of any provision in any such agreement relating  

 

B-7  CHAR1\1753723v8 to the law governing the Account, the parties hereto agree that the establishment and maintenance  of the Account, and all interests, duties and obligations with respect thereto, shall be governed by  the laws of the State of New York.  SECTION 6.5 Consent to Jurisdiction.  Each party to this Agreement submits for  itself and in connection with its properties, generally and unconditionally, to the nonexclusive  jurisdiction of the United States federal court located in the Southern District of New York, for  purposes of any legal proceeding arising out of or relating to this Agreement or the transactions  contemplated hereby.  Each party to this Agreement irrevocably waives, to the fullest extent  permitted by law, any objection which it may now or hereafter have to the laying of the venue of  any such proceeding brought in such a court and any claim that any such proceeding brought in  such a court has been brought in an inconvenient forum.  Each party to this Agreement hereby  consents to process being served in any suit, action or proceeding with respect to this Agreement,  or any document delivered pursuant hereto, by the mailing of a copy thereof, by registered or  certified mail, postage prepaid, return receipt requested, to its respective address specified at the  time for notices under this Agreement or to any other address of which it shall have given written  notice to the other party hereto.  The foregoing shall not limit the ability of any party hereto to  bring suit in the courts of any other jurisdiction.  SECTION 6.6 Waiver of Jury Trial.  Each of the parties to this Agreement  irrevocably and expressly waives any and all right to a trial by jury with respect to any legal  proceeding arising out of or relating to this Agreement or any claims or transactions in connection  herewith.  Each of the parties hereto hereby acknowledges that such waiver is made with full  understanding and knowledge of the nature of the rights and benefits waived hereby.  SECTION 6.7 Future Agreement.  This Agreement and the Security Agreement  embody the entire agreement and understanding between the parties hereto relating to the subject  matter hereof and supersedes all prior agreements between such parties that relate to the subject  matter, unless otherwise agreed to in writing by all parties.  SECTION 6.8 Limitation on Rights of Others.  The provisions of this Agreement are  solely for the benefit of the Grantor, the Securities Intermediary and the Collateral Agent and  nothing in this Agreement, whether express or implied, shall be construed to give to any other  person any legal or equitable right, remedy or claim under or in respect of this Agreement or any  covenants, conditions or provisions contained herein.  SECTION 6.9 Notices.  All communications hereunder shall be in writing (including  facsimile) and shall be personally delivered, mailed or transmitted by facsimile, respectively, to a  party at the address previously furnished in writing to each other party.  SECTION 6.10 Severability.  If any provision of, or obligation under, this Agreement,  or the application thereof to any person or under any circumstance, shall be invalid, illegal or  unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining  provisions of, and any obligations under, this Agreement, or the application of such provision in  any other jurisdiction shall not in any way be affected or impaired thereby, and each provision of  this Agreement shall be valid and enforceable to the extent permitted by applicable law.  

 

B-8  CHAR1\1753723v8 SECTION 6.11 Counterparts.  This Agreement and any amendments, modifications,  restatements, supplements and/or replacements hereof, or waivers or consents hereto, may be  executed in any number of counterparts, and by different parties hereto in separate counterparts,  each of which, when so executed and delivered, shall be deemed to be an original and all of which  counterparts, when taken together, shall constitute one and the same instrument.  This Agreement  shall become effective upon the execution of a counterpart by each of the parties hereto.  SECTION 6.12 No Waiver.  No failure on the part of the parties hereto to exercise, and  no delay in exercising, and no course of dealing with respect to, any right, power or privilege  hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof or the  exercise of any other right, power or privilege operate as such a waiver.  SECTION 6.13 Remedies Cumulative.  No right, power or remedy of the parties  hereunder shall be exclusive of any other right, power or remedy, but shall be cumulative and in  addition to any other right, power or remedy thereunder or now or hereafter existing by law or in  equity.  ARTICLE 7  TERMINATION OF AGREEMENT  SECTION 7.1 Termination of this Agreement.  The rights and powers granted herein  to the Collateral Agent have been granted in order to perfect its security interest in the Collateral,  are powers coupled with an interest and will not be affected by the lapse of time or any other matter  or circumstance.  The obligations of the Securities Intermediary hereunder shall continue in effect  until the earlier of (i) the date on which the Grantor makes suitable arrangements with the consent  of the Collateral Agent following the resignation of the Securities Intermediary and (ii) the  Collateral Agent, upon termination of the Security Agreement, has notified the Securities  Intermediary in writing that this Agreement is to be terminated.  SECTION 7.2 Evidence of Termination.  Upon the termination of this Agreement,  each of the Securities Intermediary and the Collateral Agent will execute and deliver to the Grantor  such documents as the Grantor shall prepare at its own expense and reasonably request to evidence  the termination of this Agreement.  

 

B-9  CHAR1\1753723v8 IN WITNESS WHEREOF, the undersigned have duly caused this Agreement to be  executed and delivered as a deed as of the date first above written.  as Grantor  Gladstone Lending Company, LLC,  a Delaware limited liability company  By: Gladstone Land Limited Partnership,  a Delaware limited partnership,  its sole member and manager  By: Gladstone Land Partners, LLC,  a Delaware limited liability company,  its General Partner  By: Gladstone Land Corporation,  a Maryland corporation,  its Manager  By:   Name:    Title:    as Securities Intermediary  By:   Name:    Title:    as Collateral Agent  By:   Name:    Title:    

 

B-A-1  CHAR1\1753723v8 EXHIBIT A  NOTICE OF EXCLUSIVE CONTROL  __________________, 20__  [Name and address of Securities Intermediary]  Ladies and Gentlemen:  Reference is made to that Securities Account Control Agreement, dated as of [_________]  20[__] among [____________________], as Securities Intermediary, [__________________], as  Grantor, and [________________________], as the Collateral Agent (the “Control Agreement”).   Terms used but not defined herein shall have the meanings assigned to them in the Control  Agreement.  In accordance with Section 3.2 of the Control Agreement, the Collateral Agent hereby  provides notice to the Securities Intermediary of its intent to exercise exclusive control over the  Account; this notice shall serve as a Notice of Exclusive Control under the Control Agreement.  as Collateral Agent  By:     Name:  Title:char1-1767920v1xexecuted

Execution Version  CHAR1\1753057v8 _______________ _________________________________________________  FARMER MAC MORTGAGE SECURITIES CORPORATION   as Bond Purchaser  GLADSTONE LENDING COMPANY, LLC  as Issuer  FEDERAL AGRICULTURAL MORTGAGE CORPORATION   as Guarantor  ____________________________________  AMENDED AND RESTATED AGVANTAGE® BOND PURCHASE AGREEMENT  ____________________________________  Dated as of December 10, 2020  ________________________________________________________________  

 

i  CHAR1\1753057v8 TABLE OF CONTENTS  Page  ARTICLE I DEFINITIONS ........................................................................................................... 1 Section 1.01 Definitions................................................................................................ 1 Section 1.02 Principles of Construction........................................................................ 7 ARTICLE II PURCHASE OF BONDS ......................................................................................... 7 Section 2.01 Purchase of Bonds; Minimum Denominations ........................................ 7 Section 2.02 Interest Rates and Payment ...................................................................... 8 Section 2.03 Maturity.................................................................................................... 9 ARTICLE III CONDITIONS PRECEDENT ................................................................................. 9 Section 3.01 Conditions Precedent to the Purchase of Each Bond ............................... 9 Section 3.02 Certificate of Pledged Collateral ............................................................ 10 Section 3.03 Conditions Precedent to the Closing Date ............................................. 10 ARTICLE IV REPORTING REQUIREMENTS ......................................................................... 11 Section 4.01 Annual Reporting Requirements............................................................ 11 Section 4.02 Additional Reporting Requirements ...................................................... 11 Section 4.03 Default Notices ...................................................................................... 12 ARTICLE V REPRESENTATIONS AND COVENANTS OF THE PARTIES ......................... 12 Section 5.01 Representations of Farmer Mac and the Purchaser ................................ 12 Section 5.02 Representations and Covenants of Issuer .............................................. 12 ARTICLE VI SECURITY AND COLLATERAL ....................................................................... 14 Section 6.01 Security and Collateral ........................................................................... 14 ARTICLE VII EVENTS OF DEFAULT ..................................................................................... 15 Section 7.01 Events of Default ................................................................................... 15 Section 7.02 Acceleration ........................................................................................... 17 Section 7.03 Remedies Not Exclusive ........................................................................ 17 ARTICLE VIII MISCELLANEOUS ........................................................................................... 17 Section 8.01 GOVERNING LAW .............................................................................. 17 Section 8.02 WAIVER OF JURY TRIAL .................................................................. 18 Section 8.03 Notices ................................................................................................... 18 Section 8.04 Benefit of Agreement ............................................................................. 18 Section 8.05 Entire Agreement ................................................................................... 18 Section 8.06 Amendments and Waivers ..................................................................... 18 Section 8.07 Counterparts ........................................................................................... 19 Section 8.08 Termination of Agreement ..................................................................... 19 Section 8.09 Survival .................................................................................................. 19 Section 8.10 Severability ............................................................................................ 19 Section 8.11 Expenses Indemnity; Damage Waiver ................................................... 19 

 

ii  CHAR1\1753057v8 Section 8.12 Amendment and Restatement ................................................................ 21 ARTICLE IX GUARANTEE ....................................................................................................... 21 Section 9.01 Guarantee ............................................................................................... 21 Section 9.02 Control by the Guarantor ....................................................................... 22 Schedule I – Addresses for Notices  Schedule II – Form of Pricing Agreement  Annex A – Form of AgVantage Bond (Fixed- and Floating-Rate)  Annex B – Existing Bonds and Existing Pricing Agreements   Annex C – REIT Officers’ Certificate  Annex D – Issuer Officers’ Certificate  Annex E – Qualified Loan Report  

 

CHAR1\1753057v8 AMENDED AND RESTATED AGVANTAGE BOND PURCHASE AGREEMENT  AMENDED AND RESTATED AGVANTAGE BOND PURCHASE AGREEMENT,  dated as of December 10, 2020, among FARMER MAC MORTGAGE SECURITIES  CORPORATION (the “Purchaser”), a wholly owned subsidiary of FEDERAL AGRICULTURAL  MORTGAGE CORPORATION, a federally-chartered instrumentality of the United States and an  institution of the Farm Credit System (“Farmer Mac” or the “Guarantor”); GLADSTONE  LENDING COMPANY, LLC, a Delaware limited liability company (the “Issuer”); and Farmer  Mac, as Guarantor.  RECITALS WHEREAS Issuer wishes from time to time to issue and sell AgVantage Bonds to the  Purchaser, and the Purchaser wishes from time to time to purchase such AgVantage Bonds from  Issuer, all on the terms and subject to the conditions herein provided; and  WHEREAS Farmer Mac is an instrumentality of the United States formed to provide for a  secondary market for agricultural real estate mortgages and rural utilities loans, and Issuer is a  limited liability company that intends to originate and service agricultural mortgage loans as  contemplated in this Agreement; and  WHEREAS the Issuer believes it to be in its best interests to issue and sell AgVantage  Bonds to obtain funding from Farmer Mac; and  WHEREAS Farmer Mac, the Purchaser and Issuer have agreed that the AgVantage Bonds  will be guaranteed by Farmer Mac and secured by the pledge of loans secured by first liens on  agricultural real estate, as provided herein; and   WHEREAS, Farmer Mac, the Purchaser and Issuer previously entered into an AgVantage  Bond Purchase Agreement dated as of December 5, 2014 (the “Existing Agreement”) pursuant to  which Issuer has sold AgVantage Bonds to the Purchaser; and  WHEREAS, Farmer Mac, the Purchaser and Issuer desire to combine, amend and restate  the Existing Agreement in this Amended and Restated AgVantage Bond Purchase Agreement  effective as of December 10, 2020 to govern all aspects of the terms and conditions governing the  rights and obligations of the parties with respect to all AgVantage Bonds issued by Issuer under  the Existing Agreement as well as any additional AgVantage Bonds issued by Issuer in the future  from time to time under this Amended and Restated AgVantage Bond Purchase Agreement.  NOW, THEREFORE, in consideration of the mutual agreements herein contained, Farmer  Mac, the Purchaser and Issuer agree as follows:  ARTICLE I  DEFINITIONS  SECTION 1.01. Definitions.  As used in this Agreement, the following terms shall have  the following meanings:  

 

2  CHAR1\1753057v8 “Agreement” means this Amended and Restated AgVantage Bond Purchase Agreement,  as the same may be amended, restated, extended, supplemented or otherwise modified in writing  from time to time.  “AgVantage Bonds” or “Bonds” means the debt instruments substantially in the form of  Annex A hereto issued and sold under this Agreement, or any one or more of them as the context  may require, and shall include the Existing Bonds.  “Bond Documents” means the Bonds, this Agreement, any Pricing Agreements and the  Pledge Agreement.  “Bond Interest Rate” means the rate of interest applicable to any particular Bond, as set  forth in the applicable Pricing Agreement.  “Bond Specific Payment Default” means an Event of Default triggered solely by a payment  default of one or more AgVantage Bonds under Section 7.01(a) of this Agreement when no other  facts and circumstances exist that have caused an Event of Default under Section 7.01 (other than  Section 7.01(a)) to occur and be continuing.   “Borrower” means a limited liability company or other entity organized and domiciled  under the laws of any state in the United States of America that is principally-owned by the  Operating Partnership and affiliated with Issuer (unless otherwise approved by Farmer Mac) and  that owns the agricultural real estate securing one or more loans made by Issuer to such Borrower.  “Business Day” means any day other than a Saturday, a Sunday, or a day on which any of  the Federal Reserve Bank of New York, Farmer Mac’s office in Washington, DC or Issuer’s main  office in McLean, Virginia is not open for business.  “Capitalized Interest” means interest that is added to the cost of a long-term asset rather  than expensed.  “Certificate of Pledged Collateral” has the meaning given to that term in the Pledge  Agreement.  “Change of Control” means Gladstone Management Corporation, a Maryland corporation,  or a sub-adviser thereof ceases to be the investment adviser to the REIT and, indirectly, to  Gladstone Land Partners, LLC, a Delaware limited liability company, the Operating Partnership  or the Issuer at any time during the term of the Bonds.    “Closing Date” means the date of the funding of each issuance of AgVantage Bonds  hereunder, which date shall be set forth in the applicable Pricing Agreement.  “Collateral” has the meaning given to that term in the Pledge Agreement.  “Collateral Agent” means Farmer Mac, as collateral agent under the Pledge Agreement, or  its successor, as appointed pursuant to the terms set forth in Article 3 of the Pledge Agreement.  

 

3  CHAR1\1753057v8 “Control Party” means (i) the Guarantor, so long as no Guarantor Default has occurred and  is continuing, or (ii) the holders of the AgVantage Bonds for so long as a Guarantor Default has  occurred and is continuing.  “Dollar” or “$” means the lawful money of the United States of America.    “EBITDA” means, without duplication, earnings before interest, taxes, depreciation,  amortization and aggregate preferred dividend payments to the extent required to be reflected as  debt on the REIT’s Financial Statements.   “Environmental Laws” means any and all applicable current and future federal, state and  local laws and any consent decrees, concessions, permits, grants, franchises, licenses, agreements  or other restrictions of a governmental authority or common law causes of action relating to: (a)  protection of the environment or natural resources from, or emissions, discharges, releases or  threatened releases of, any materials, including Hazardous Materials, in the environment including  ambient air, surface, water, ground water or land, (b) the generation, handling, use, labeling,  disposal, transportation, reclamation and remediation of Hazardous Materials; (c) human health or  safety; (d) the protection of endangered or threatened species; and (e) the protection of  environmentally sensitive areas.  “Environmental Liability” means any liability, contingent or otherwise (including any  liability for damages, costs of environmental remediation, fines, penalties or indemnities), of Issuer  or any affiliate of Issuer resulting from or based upon (a) violation of any Environmental Law; (b)  the generation, use, handling, transportation, storage, treatment, disposal or permitting or arranging  for the disposal of any Hazardous Materials; (c) exposure to any Hazardous Materials; (d) the  release or threatened release of any Hazardous Materials; or (e) any contract, agreement or other  consensual arrangement pursuant to which liability is assumed or imposed with respect to any of  the foregoing.  “Equity Offering Proceeds” means the amount of net proceeds of any offerings or issuances  of common equity securities (including proceeds from issuances of senior common stock but  excluding proceeds from issuances of preferred term stock that is required to be accounted for as  debt under GAAP) completed by the REIT after the date hereof, as set forth in the offering  documents for any such offerings or issuances; provided, however, that to the extent any amount  of such net proceeds are used to retire or redeem any existing or outstanding class or series of  equity or debt securities issued by the REIT, or to repay debt otherwise incurred, directly or  indirectly, by the REIT, as set forth in the offering documents for any such offerings or issuances,  then the Equity Offering Proceeds shall be reduced by that amount; provided further, that to the  extent the offering documents for any such offerings or issuances do not clearly identify, in the  reasonable judgment of Farmer Mac, the amount of net proceeds used to retire or redeem any  existing or outstanding class or series of equity or debt securities issued by the REIT, or to repay  debt otherwise incurred, directly or indirectly, by the REIT, then Issuer shall cause the REIT to  provide such information as is reasonably requested by Farmer Mac to enable Farmer Mac to  perform an accurate calculation of the amount of Equity Offering Proceeds resulting from an  offering or issuance of equity securities completed by the REIT.  “Event of Default” has the meaning given to that term in Section 7.01.  

 

4  CHAR1\1753057v8 “Existing Bonds” means the bonds set forth on Annex B.   “Existing Pricing Agreements” means the pricing agreements set forth on Annex B.   “Final Issuance Date” means the earlier of: (a) May 31, 2023; and (b) such date as Farmer  Mac determines that a Material Adverse Change has occurred.  “Final Maturity Date” means December 31, 2030, or such other date as agreed to by the  parties.  “Financial Covenants” has the meaning given to that term in Section 5.02.  “Financial Statements”, in respect of a Fiscal Year, means the publicly filed consolidated  financial statements (including footnotes) of the REIT prepared in accordance with U.S.  generally  accepted accounting principles for that Fiscal Year as audited by independent certified public  accountants selected by the REIT, and in respect of a Fiscal Quarter, means the publicly filed  unaudited interim consolidated financial statements of the REIT prepared in accordance with U.S.   generally accepted accounting principles for that Fiscal Quarter.  “Fiscal Quarter” means each fiscal quarter of the REIT, as such may be changed from time  to time, which at the date hereof commence on January 1, April 1, July 1, and October 1 of each  calendar year and end on March 31, June 30, September 30, and December 31 of the same calendar  year, respectively.  “Fiscal Year” means the fiscal year of the REIT, as such may be changed from time to  time, which at the date hereof commences on January 1 of each calendar year and ends on  December 31 of the same calendar year.  “Fixed Charge Coverage Ratio” means the ratio of (a) the sum of, without duplication, the  REIT’s (i) aggregate EBITDA as presented in the Financial Statements, for the prior four Fiscal  Quarters for which Financial Statements are available, which includes the most recently reported  quarter, (ii) aggregate Non-Cash Expenses as presented in the Financial Statements, for the prior  four Fiscal Quarters for which Financial Statements are available, which includes the most recently  reported quarter, and (iii) aggregate nonrecurring losses (or minus nonrecurring gains) that were  accounted for in the calculation of the REIT’s EBITDA as presented in the Financial Statements,  for the prior four Fiscal Quarters for which Financial Statements are available, which includes the  most recently reported quarter, to (b) the sum of the REIT’s (i) aggregate interest expense as  presented in the Financial Statements, for the prior four Fiscal Quarters for which Financial  Statements are available, which includes the most recently reported quarter, (ii) aggregate  Capitalized Interest, for the prior four Fiscal Quarters for which Financial Statements are available,  which includes the most recently reported quarter, (iii) aggregate preferred dividend payments as  presented in the Financial Statements, to the extent required to be reflected as debt on the REIT’s  Financial Statements, for the prior four Fiscal Quarters for which Financial Statements are  available, which includes the most recently reported quarter, (iv) aggregate Lease Payments, for  the prior four Fiscal Quarters for which Financial Statements are available, which includes the  most recently reported quarter, and (v) aggregate principal amount of all regularly scheduled  principal payments on outstanding debt for borrowed money, for the prior four Fiscal Quarters for  which Financial Statements are available, which includes the most recently reported quarter.  

 

5  CHAR1\1753057v8 “Goodwill” shall be the aggregate value of the intangible assets held by the REIT, as of the  end of each Fiscal Quarter or the Fiscal Year, as applicable, as presented in the Financial  Statements, excluding the Intangible Assets.  “Guaranteed Obligations” has the meaning given to that term in Section 9.01.  “Guarantor Default” means a default by the Guarantor under its obligations pursuant to  Article IX which is existing and continuing.  “Hazardous Materials” means (a) any explosive or radioactive substances, materials or  wastes, (b) any hazardous or toxic substances, materials or wastes, defined or regulated as such in  or under, or that could reasonably be expected to give rise to liability under, any applicable  Environmental Law, including, asbestos or asbestos containing materials, infectious or medical  waste, polychlorinated biphenyls, radon gas, urea-formaldehyde insulation, gasoline or petroleum  (including crude oil or any fraction thereof) or petroleum products and (c) all other substances,  materials or wastes of any nature regulated under or with respect to which liability or standards of  conduct are imposed pursuant to any Environmental Law.  “Indemnitee” has the meaning given to that term in Section 8.11(b).  “Intangible Assets” means intangible real property assets that are recorded as part of the  acquisition of a real property asset, including leasing costs (consisting of leasing commissions and  legal fees), in-place lease values and customer relationships, to the extent that such values are  included in the line item “Lease intangibles, net” on the consolidated balance sheet of the REIT’s  Financial Statements.  “Interest Payment Date” means the dates set forth in the Pricing Agreement for Bonds as  the interest payment dates therefor; provided, however, that if any such date is not a Business Day,  such Interest Payment Date that would otherwise be such date will be the next Business Day  following such date.  “Land Asset Fair Value Adjustment” means the difference between (i) the then current  aggregate fair value of all of the farm properties directly or indirectly owned by the REIT, as  reported in the MD&A Section under the Net Asset Value disclosure in the REIT’s quarterly filings  with the Securities and Exchange Commission (“SEC”), representing the value of such properties  based on independent third-party appraisals, the purchase price paid for recently purchased  properties not included in the previous Fiscal Quarter’s Financial Statements, or the REIT’s  internal valuation process, as applicable, and (ii) the net cost basis of all of the farm properties  directly or indirectly owned by the REIT representing the initial acquisition price (including the  costs allocated to both tangible assets and Intangible Assets) plus subsequent improvements and  capitalized costs associated with such properties, and adjusted for accumulated depreciation and  amortization, as such value is set forth in the applicable Financial Statements of the REIT.  In the  absence of the Net Asset Value disclosure within the REIT’s quarterly filing, or the absence of a  quarterly filing, the aggregate fair value of such farm properties shall be that as found in the REIT’s  most recent SEC filing, updated for any appraisals performed since the time of said filing or the  addition of any new properties acquired since the time of such filing, which properties, if any, will  be included at their respective purchase price(s).  

 

6  CHAR1\1753057v8 “Lease Payments” means payments related to capital leases, as presented, as of the end of  each Fiscal Quarter or the Fiscal Year, as applicable, as presented in the Financial Statements.  “Leverage Ratio” means the ratio of the REIT’s Total Debt to the REIT’s Total Assets.  “Material Adverse Change” means a material adverse change in (i) the financial condition  or business of Issuer, the Operating Partnership, or the REIT since the end of the REIT’s most  recently completed Fiscal Year for which audited Financial Statements are available and have been  provided to Farmer Mac, unless such material adverse change has otherwise been set forth in  documents, certificates or financial information furnished to Farmer Mac or publicly filed prior to  the date of this Agreement, or (ii) the Issuer’s ability to perform any of its respective obligations  under any Bond Document (as applicable).  “Minimum Required Collateralization Level” has the meaning given to that term in the  Pledge Agreement.  “Non-Cash Expenses” means any expenses that were accounted for in the calculation of  the REIT’s EBITDA that did not, and are not expected to, result in a disbursement of cash.  Non- Cash Expenses may include, but are not limited to, stock-based compensation expense and any  other compensation for products or services paid in stock of the REIT or units of the Issuer.  The  REIT or the Issuer shall inform Farmer Mac of the items included in the Non-Cash Expenses  calculation to the extent requested by Farmer Mac.  “Nonperforming Assets” means the sum of the unpaid principal balance of all loans owned  by Issuer that are 90 or more days delinquent, in foreclosure, or in bankruptcy.  “Nonperforming Asset Rate” means the ratio of Nonperforming Assets to the unpaid  principal balance of all loans owned by Issuer.  “Notice of Requested Borrowing” has the meaning set forth in Section 2.01 hereof.  “Operating Partnership” means Gladstone Land Limited Partnership.  “Permitted Liens” has the meaning given to that term in the Pledge Agreement.  “Person” means an individual, a corporation, a partnership, an association, a trust or any  other entity or organization, including a government or political subdivision or an agency or  instrumentality thereof.  “Pledge Agreement” means the Amended and Restated Pledge and Security Agreement  dated as of the date hereof, among Issuer, the Purchaser, Farmer Mac and the Collateral Agent, as  the same may be amended, restated, extended, supplemented or otherwise modified in writing from  time to time in accordance with the terms thereof.  “Pricing Agreement” means the Pricing Agreement for each issuance of Bonds among  Farmer Mac, the Purchaser and Issuer substantially in the form of Schedule II attached hereto and  shall include the Existing Pricing Agreements.  

 

7  CHAR1\1753057v8 “Qualified Collateral” has the meaning given to that term in the Pledge Agreement.  “Qualified Loans” has the meaning given to that term in the Pledge Agreement.  “REIT” means the Gladstone Land Corporation, a Maryland corporation, and the  consolidated parent company of Issuer.  “Related Parties” means, with respect to any Person, such Person’s affiliates and the  partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and  representatives of such Person and of such Person’s affiliates.  “Stockholders’ Equity” shall be the stockholders’ equity of the REIT, as of the end of each  Fiscal Quarter or the Fiscal Year, as applicable, as presented in the Financial Statements.  “Total Assets” means the sum of (a) the Land Asset Fair Value Adjustment and (b) the  total assets as of the end of each Fiscal Quarter or the Fiscal Year, as applicable, as presented in  the Financial Statements.  “Total Debt” means the total interest-bearing debt of the REIT (including any preferred  term stock that is required to be accounted for as debt under GAAP) as of the end of each Fiscal  Quarter or the Fiscal Year, as applicable, as presented in the Financial Statements.  SECTION 1.02. Principles of Construction.  Unless the context shall otherwise  indicate, the terms defined in Section 1.01 hereof include the plural as well as the singular and the  singular as well as the plural.  The words “hereafter”, “herein”, “hereof”, “hereto” and  “hereunder”, and words of similar import, refer to this Agreement as a whole and not to any  particular Article, Section or other subdivision.  The words “include”, “includes” and “including”  shall be construed to be followed by the words “without limitation.” References to Exhibits,  Articles, Annexes, Sections, Schedules, paragraphs, subparagraphs and clauses shall be construed  as references to the Exhibits, Articles, Annexes, Sections, Schedules, paragraphs, subparagraphs  and clauses of this Agreement.  All accounting terms used and not expressly defined herein shall  have the meanings given to them in accordance with United States generally accepted accounting  principles, and the term “generally accepted accounting principles” shall mean such accounting  principles which are generally accepted at the date or time of any computation or at the date hereof.   The descriptive headings of the various articles and sections of this Agreement were formulated  and inserted for convenience only and shall not be deemed to affect the meaning or construction  of the provisions hereof.  ARTICLE II  PURCHASE OF BONDS  SECTION 2.01. Purchase of Bonds; Minimum Denominations.  The Purchaser from  time to time in its sole discretion agrees to purchase Bonds, at 100% of their principal amount,  before the Final Issuance Date, as requested by Issuer by written notice (each, a “Notice of  Requested Borrowing”) and approved by Farmer Mac in an aggregate principal amount, for all  Bonds outstanding hereunder at any one time, not in excess of $225,000,000, subject to satisfaction  of the conditions set forth herein and agreement between the parties hereto as to the terms of the  

 

8  CHAR1\1753057v8 applicable Pricing Agreement.  Issuer may borrow, repay (subject to the terms of the applicable  Bonds being repaid) and reborrow funds at any time or from time to time up to, but not including,  the Final Issuance Date; provided that Issuer shall not be eligible to borrow funds under this  Agreement at any time that Farmer Mac has determined in its sole discretion that there has been a  Material Adverse Change.  Each advance under this Agreement shall be disbursed in a minimum  amount of $1 million and additional increments of $50,000 or such other amounts as agreed to in  the applicable Pricing Agreement.  Each Bond shall price, close and fund at times mutually  agreeable to the parties hereto, subject to satisfaction of the conditions set forth herein and in  accordance with the procedures set forth in Section 2.02(c) hereof, unless otherwise agreed by the  parties hereto and set forth in the applicable Pricing Agreement.  No Bond will be purchased  without the signature of Issuer on such Bond, and each Bond purchased hereunder shall be the  obligation of Issuer.  Nothing contained in this Agreement shall obligate the Purchaser to purchase  any Bond or advance any funds to Issuer.   All Existing Bonds, and the accompanying Existing Pricing Agreements, shall be deemed  to have been issued pursuant hereto and deemed obligations hereunder, and from and after the  Closing Date shall be subject to and governed by the terms and conditions hereof.   SECTION 2.02. Interest Rates and Payment.  (a) Each Bond shall bear interest, payable semi-annually in arrears (unless  otherwise agreed by the parties hereto and set forth in the applicable Pricing Agreement)  on the outstanding principal amount thereof (computed on the basis of a 30-day month and  a 360-day year unless otherwise agreed by the parties hereto and set forth in the applicable  Pricing Agreement) from its date of issuance until final payment on the maturity date  thereof or otherwise at a fixed rate or floating rate, as specified for the term of such Bond  in the applicable Pricing Agreement.  Interest only shall be payable on each Interest  Payment Date that is not also the maturity date of the Bond.  The Interest Payment Dates  shall be determined at the time of, and set forth in, the applicable Pricing Agreement.  The  principal amount of each Bond, together with any accrued but unpaid interest, shall be due  and payable on the applicable maturity date for such Bond.  (b) Default Interest.  To the extent any payment of interest or principal is not  paid when due, interest shall accrue on the entire outstanding principal amount of the  Bonds, together with accrued interest thereon, at the applicable rate per annum determined  as provided above plus four percent (4%).  (c) Notice of Requested Borrowing; Determination of Applicable Margin;  Procedure for Pricing.  (i) Each Notice of Requested Borrowing shall indicate the requested  amount of the Bond and the desired maturity date of such Bond that Issuer requests  to be purchased.  A Notice of Requested Borrowing may request preliminary  pricing indications for more than one maturity.  Each Notice of Requested  Borrowing shall also provide name, telephone and email contact information of an  authorized representative of Issuer.  

 

9  CHAR1\1753057v8 (ii) Upon receipt of a Notice of Requested Borrowing from Issuer,  Farmer Mac shall, within 2 Business Days, subject to the condition that Issuer has  already provided information to Farmer Mac concerning Issuer, the proposed  Borrowers, the Operating Partnership, or the REIT as reasonably requested by  Farmer Mac, provide to Issuer a preliminary indication of the applicable Bond  Interest Rate.  Farmer Mac shall not be obligated to provide an indication of pricing  if Farmer Mac uses its best efforts to obtain and provide such preliminary  indication, but determines in its sole discretion reasonably exercised that market  conditions are unfavorable for the issuance of debt to fund Bonds with the terms  set forth in the Notice of Requested Borrowing.  Upon an acceptance of such  preliminary indication of pricing by Issuer, the applicable Bond will price within a  mutually agreeable time period (and may price on the day of the preliminary pricing  if the parties so agree) with the agreed upon Bond Interest Rate being evidenced in  the applicable Pricing Agreement.  (d) Payments and Prepayments.  Each Bond shall not be prepayable during the  term of such Bond unless otherwise agreed by the parties hereto and set forth in the  applicable Pricing Agreement, which will set forth a schedule of any permitted prepayment  dates.  Unless otherwise agreed by the parties hereto and set forth in the applicable Pricing  Agreement, any such permitted prepayment by Issuer shall be in whole upon at least nine  business days’ written notice to Farmer Mac.  SECTION 2.03. Maturity.  Each Bond shall mature on the maturity date set forth in the  applicable Pricing Agreement and in any event no later than the Final Maturity Date.  ARTICLE III  CONDITIONS PRECEDENT  SECTION 3.01. Conditions Precedent to the Purchase of Each Bond.  On each  Closing Date, the Purchaser shall be under no obligation to purchase any Bond unless and until  the following conditions have been satisfied:  (a) The Bonds.  Farmer Mac shall have received the original of (i) such Bonds,  each duly executed on behalf of Issuer, in the applicable form attached as Annex A hereto,  or otherwise in a form agreed by the parties and (ii) the Pricing Agreements for such Bonds,  each duly executed on behalf of Issuer, in the applicable form attached as Schedule II  hereto, or otherwise in a form agreed by the parties.  (b) The Pledge Agreement.  Farmer Mac shall have received an original of the  Pledge Agreement duly executed on behalf of Issuer and the Collateral Agent.  (c) Opinion of Counsel.  Farmer Mac shall have received an opinion of counsel  to Issuer in form and substance acceptable to Farmer Mac.  (d) Financial and Other Information.  Issuer shall have provided Farmer Mac  with the REIT’s most recent Financial Statements and such other information concerning  

 

10  CHAR1\1753057v8 Issuer, the Borrowers, the Operating Partnership, and the REIT as Farmer Mac shall have  reasonably requested.  (e) No Material Adverse Change.  Issuer shall have certified to Farmer Mac (in  the manner specified in paragraph (i) of this Section 3.01), and Farmer Mac shall be  satisfied, that no Material Adverse Change shall have occurred.  (f) UCC Filing.  Issuer shall have provided Farmer Mac with evidence that  Issuer has filed any applicable UCC financing statement required pursuant to the Pledge  Agreement.  (g) No Event of Default.  Issuer shall have certified to Farmer Mac and Farmer  Mac shall be satisfied that no Event of Default shall have occurred and be continuing.  (h) Compliance with Financial Covenants.  Issuer shall have certified to Farmer  Mac that it has caused the REIT to provide a certification by any president, vice president,  chief financial officer or treasurer of the REIT to Farmer Mac, substantially in the form of  Annex C attached hereto, regarding the REIT’s compliance with the Financial Covenants  contained herein, and Farmer Mac shall be satisfied that the REIT is in compliance with all  Financial Covenants contained herein.  (i) Certification of Senior Management.  Issuer shall have provided Farmer  Mac a certification by any member, president, vice president, chief financial officer or  treasurer of Issuer, substantially in the form of Annex D attached hereto, as to the  following: (i) that Issuer is an institution organized as a Delaware limited liability company  with the appropriate expertise, experience and qualifications to make agricultural mortgage  loans to the Borrowers; (ii) the matters to be certified under paragraphs (e), (g) and (h) of  this Section 3.01; and (iii) the representations and warranties of Issuer contained in Section  5.02 of this Agreement are true and correct in all material respects except with respect to  representations or warranties that relate to a earlier date or time, in which case such  representations and warranties were true and correct as of such earlier date or time.  (j) Qualified Collateral Schedule.  The Purchaser shall have received and  provided written approval of the Qualified Collateral Schedule (and the Qualified  Collateral evidenced thereby) to be delivered pursuant to the Pledge Agreement.  SECTION 3.02. Certificate of Pledged Collateral.  On each Closing Date, Issuer shall  provide to Farmer Mac and the Collateral Agent (if not Farmer Mac) a copy of a Certificate of  Pledged Collateral.  The Certificate of Pledged Collateral will be dated not earlier than the last day  of the immediately preceding calendar month, or a more recent date at Issuer’s option, in  accordance with the terms of the Pledge Agreement.  SECTION 3.03. Conditions Precedent to the Closing Date.  This Agreement shall  become effective upon, and the obligation of the Purchaser to purchase its initial Bond hereunder  is subject to, the satisfaction of the following conditions precedent:   

 

11  CHAR1\1753057v8 (a) Receipt by the Purchaser and Farmer Mac of executed counterparts of this  Agreement and the Pledge Agreement, each duly executed on behalf of Issuer and by each  other party thereto.  (b) Receipt by the Purchaser and Farmer Mac of a certificate dated as of the  Closing Date and signed by the secretary or an assistant secretary of the Issuer, certifying  as appropriate as to: (a) all action taken by the Issuer in connection with this Agreement  and the other Bond Documents; (b) the names of the authorized officers authorized to sign  the Bond Documents and their true signatures; and (c) copies of its organizational  documents as in effect on the Closing Date certified by the appropriate state official where  such documents are filed in a state office (if so filed or required to be so filed) together  with certificates from the appropriate state officials as to the continued existence and good  standing or existence (as applicable) of the Issuer in its state of organization.  (c) Receipt by the Purchaser and Farmer Mac of a lien search with respect to  the Issuer and each Borrower, in scope satisfactory to the Purchaser and Farmer Mac and  with results showing no liens other than Permitted Liens and otherwise satisfactory to the  Purchaser and Farmer Mac.   (d) The Issuer shall have paid all fees and expenses related to this Agreement  and the other Bond Documents payable on or before the Closing Date as required by this  Agreement or any other Bond Document.  ARTICLE IV  REPORTING REQUIREMENTS  SECTION 4.01. Annual Reporting Requirements.  So long as any Bonds remain  outstanding, Issuer shall provide or shall cause the REIT to provide Farmer Mac with the following  items within 90 days of the end of each Fiscal Year, in each case, in form and substance reasonably  satisfactory to Farmer Mac:  (a) the Financial Statements for such Fiscal Year;  (b) a Certificate of Pledged Collateral;  (c) an inventory from the Collateral Agent (if not Farmer Mac), or such other  evidence as is reasonably satisfactory to Farmer Mac, as to the Qualified Collateral held  by the Collateral Agent (if not Farmer Mac) at the end of such Fiscal Year;  (d) the Nonperforming Asset Rate as of the last day of the end of the  immediately preceding Fiscal Year; and  (e) such other information concerning Issuer, the Operating Partnership, the  REIT, the Borrowers, or the Qualified Collateral as is reasonably requested by Farmer Mac.  SECTION 4.02. Additional Reporting Requirements.  So long as any Bonds remain  outstanding, Issuer shall provide or shall cause the REIT to provide to Farmer Mac, not more than  

 

12  CHAR1\1753057v8 forty-five (45) calendar days following the end of each of Issuer’s calendar quarters, a report  substantially in the form attached hereto as Annex E and incorporated by reference herein that  identifies each Qualified Loan that constitutes Qualified Collateral, and such other information  concerning Issuer, the Operating Partnership, the REIT, the Borrowers, or the Qualified Collateral  as is reasonably requested by Farmer Mac.  SECTION 4.03. Default Notices.  If an action, occurrence or event shall happen that is,  or with notice and the passage of time would become (unless Issuer completes the required  performance during any applicable grace period), an Event of Default, Issuer shall deliver a notice  of such action, occurrence or event to Farmer Mac as soon as practicable and in any event before  4:00 p.m.  (District of Columbia time) on the Business Day following the date Issuer becomes  aware of such action, occurrence or event, and, if such Event of Default should occur, shall submit  to Farmer Mac, within five days thereafter, a report setting forth its views as to the reasons for the  Event of Default, the anticipated duration of the Event of Default and what corrective actions  Issuer is taking to cure such Event of Default.  ARTICLE V  REPRESENTATIONS AND COVENANTS OF THE PARTIES  SECTION 5.01. Representations of Farmer Mac and the Purchaser.  Each of Farmer  Mac and the Purchaser jointly and severally represent to Issuer that on the date hereof and on each  date on which the Purchaser purchases a Bond from Issuer:  (a) it has all necessary authority and has taken all necessary organizational  action, and obtained all necessary approvals, in order for it to execute and deliver all Bond  Documents to which it is a party and for its obligations and agreements under the Bond  Documents to constitute valid and binding obligations of Farmer Mac and the Purchaser;  and in particular the terms of the transaction, and the actions taken by Farmer Mac and the  Purchaser, are in compliance with and in satisfaction of the requirements of the Farm Credit  Administration, as amended or waived by the Farm Credit Administration; and  (b) the Purchaser is purchasing the Bonds for its own account and not with a  view to the distribution thereof, provided that the disposition by Farmer Mac or the  Purchaser of their property shall at all times be within their control.  Farmer Mac and the  Purchaser each understands that the Bonds have not been registered under the Securities  Act of 1933, as amended, and may be resold only if an exemption from registration is  available.  SECTION 5.02. Representations and Covenants of Issuer.  Issuer hereby represents  to Farmer Mac and the Purchaser that on the date hereof and on each date on which the Purchaser  purchases a Bond from Issuer, and, for purposes of paragraph (j), covenants:  (a) Issuer has been duly organized and is validly existing and in good standing  in the jurisdiction of its organization;  (b) Issuer has the limited liability company power and authority to execute and  deliver this Agreement, each of the other Bond Documents and the applicable Pricing  

 

13  CHAR1\1753057v8 Agreement, to consummate the transactions contemplated hereby and thereby and to  perform each of its obligations hereunder and thereunder;  (c) Issuer has taken all necessary limited liability company and other action to  authorize the execution and delivery of this Agreement, each of the other Bond Documents  and the applicable Pricing Agreement, the consummation by Issuer of the transactions  contemplated hereby and thereby and the performance by Issuer of its obligations  hereunder and thereunder;  (d) this Agreement, each of the other Bond Documents and each applicable  Pricing Agreement have been duly authorized, executed and delivered by Issuer and  constitute the legal, valid and binding obligations of Issuer, enforceable against Issuer in  accordance with their respective terms, subject to: (i) applicable bankruptcy,  reorganization, insolvency, moratorium and other laws of general applicability relating to  or affecting creditors’ rights generally; and (ii) the application of general principles of  equity regardless of whether such enforceability is considered in a proceeding in equity or  at law;  (e) no approval, consent, authorization, order, waiver, exemption, variance,  registration, filing, notification, qualification, license, permit or other action is required to  be obtained, given, made or taken, as the case may be, with, from or by any regulatory  body, administrative agency or governmental authority having jurisdiction over Issuer or  any third party under any agreement to which Issuer is a party to authorize the execution  and delivery by Issuer of this Agreement, any of the other Bond Documents or the  applicable Pricing Agreement, or the consummation by Issuer of the transactions  contemplated hereby or thereby or the performance by each of Issuer of each of its  obligations hereunder or thereunder;  (f) neither the execution or delivery by Issuer of this Agreement, any of the  other Bond Documents or the applicable Pricing Agreement nor the consummation by  Issuer of any of the transactions contemplated hereby or thereby nor the performance by  Issuer of its obligations hereunder or thereunder, including, without limitation, the pledge  of the Collateral to Farmer Mac, conflicts with or will conflict with, violates or will violate,  results in or will result in a breach of, constitutes or will constitute a default under, or results  in or will result in the imposition of any lien or encumbrance pursuant to any term or  provision of the articles of incorporation or the bylaws of Issuer or any provision of any  existing law or any rule or regulation currently applicable to Issuer or any judgment, order  or decree of any court or any regulatory body, administrative agency or governmental  authority having jurisdiction over Issuer or the terms of any mortgage, indenture, contract  or other agreement to which Issuer is a party or by which Issuer or any of each of its  properties is bound;  (g) there is no action, suit, proceeding or investigation before or by any court  or any regulatory body, administrative agency or governmental authority presently pending  or, to the actual knowledge of Issuer, threatened with respect to Issuer, this Agreement,  any of the other Bond Documents or the applicable Pricing Agreement challenging the  validity or enforceability of this Agreement, any of the other Bond Documents or the  

 

14  CHAR1\1753057v8 applicable Pricing Agreement, or seeking to restrain, enjoin or otherwise prevent Issuer  from engaging in its business as currently conducted or the consummation by Issuer of the  transactions contemplated by this Agreement, any of the other Bond Documents or the  applicable Pricing Agreement, or which, if adversely determined, would have a material  adverse effect on Issuer’s financial condition or either of its ability to perform each of its  obligations under this Agreement, any of the other Bond Documents or the applicable  Pricing Agreement;  (h) Issuer has (or will obtain through other affiliated companies directly or  indirectly owned by the REIT) the appropriate expertise, experience and qualifications to  make agricultural mortgage loans similar to the mortgage loans (to the Borrowers)  contemplated hereby;  (i) no Material Adverse Change has occurred;  (j) Issuer shall cause the REIT to provide to Farmer Mac a certification within  45 calendar days after the end of the last Fiscal Quarter, substantially in the form of Annex  C attached hereto, certifying that the REIT is in compliance with the following covenants  (collectively, the “Financial Covenants”) as of the end of such Fiscal Quarter:  (i) Leverage Ratio of the REIT shall not be more than sixty-five percent  (65%); and   (ii) the Fixed Charge Coverage Ratio of the REIT shall be at least (x)  for any Fiscal Quarter ending on December 31, 2020 and through and including  September 30, 2022, 1.10 and (y) for any Fiscal Quarter ending thereafter, 1.15.  (k) as to each Bond purchased by Purchaser, Issuer made a reasonable  determination, as of the date on which the Purchaser purchased such Bond from Issuer, that  the applicable Borrower under each Qualified Loan pledged to secure such Bond at the  time of such purchase had sufficient repayment capacity to perform under such Qualified  Loan without requiring repayment support from any other Borrower.  ARTICLE VI  SECURITY AND COLLATERAL  SECTION 6.01. Security and Collateral.  (a) To secure the full and punctual payment of the Bonds, Issuer shall enter into  the Pledge Agreement pursuant to which Issuer shall grant a perfected security interest to  the Collateral Agent, for the ratable benefit of the holders of the Bonds and the Guarantor,  in and shall pledge and collaterally assign to and with the Collateral Agent the Collateral  and all of the rights, remedies, title and interest of Issuer in and to the Collateral in which  the Issuer has rights or the power to transfer rights to a secured party.  (b) Issuer shall cause (i) the value of the Qualified Collateral (as determined in  accordance with the Pledge Agreement) to be at all times not less than 110% of the  

 

15  CHAR1\1753057v8 aggregate outstanding principal amount of the Bonds, and (ii) the value of the Qualified  Loans (as determined in accordance with the Pledge Agreement) to be at all times not less  than 100% of the aggregate outstanding principal amount of the Bonds.  (c) Issuer shall not create, or permit to exist, any pledge, lien, charge, mortgage,  encumbrance, debenture, hypothecation or other similar security instrument that secures,  or in any way attaches to, such Collateral, other than the lien of the Pledge Agreement and  the Permitted Liens, without the prior written consent of Farmer Mac.  (d) The Qualified Loans will at all times meet the Eligibility Criteria as defined  in the Pledge Agreement.  ARTICLE VII  EVENTS OF DEFAULT  SECTION 7.01. Events of Default.  Each of the following actions, occurrences or events  shall constitute an “Event of Default” under the terms of this Agreement:  (a) a failure by Issuer to make a payment of principal or interest on any Bond  for more than two Business Days after the same becomes due and payable;  (b) any representation or warranty made by Issuer in Article IV or V hereof or  in any Bond Document or in any certificate or instrument furnished in connection therewith  shall prove to have been false or misleading in any material respect as of the date made,  provided that Issuer shall have thirty (30) days following the written identification by  Purchaser or Farmer Mac of the related misrepresentation or breach of warranty to cure the  related misrepresentation if unintentional and if Purchaser and Farmer Mac are thereby  placed in the same risk position as if the misrepresentation had not been made;   (c) a failure by Issuer to comply with any other covenant or provision contained  in this Agreement or any Bond or the Pledge Agreement (other than a failure by Issuer to  maintain the Minimum Required Collateralization Level or a failure to comply with any of  the Financial Covenants); provided, that, Issuer shall have forty-five (45) calendar days (or  in the case of the financial reporting covenants contained in Article IV, ten (10) calendar  days) of the earlier of the date on which (i) Issuer becomes aware of such failure or (ii)  notice from Farmer Mac requesting that it be cured to cure such action, occurrence or event;  (d) the entry of a decree or order by a court having jurisdiction in the premises  adjudging Issuer, the Operating Partnership or the REIT a bankrupt or insolvent, or  approving as properly filed a petition seeking reorganization, arrangement, adjustment or  composition of or in respect of Issuer, the Operating Partnership or the REIT under the  Federal Bankruptcy Act or any other applicable Federal or State law or law of the District  of Columbia, or appointing a receiver, liquidator, assignee, trustee, sequestrator (or other  similar official) of Issuer, the Operating Partnership or the REIT or of any substantial part  of either of its property, or ordering the winding up or liquidation of either of its affairs,  and the continuance of any such decree or order unstayed and in effect for a period of 60  consecutive days;  

 

16  CHAR1\1753057v8 (e) the commencement by Issuer, the Operating Partnership or the REIT of  proceedings to be adjudicated a bankrupt or insolvent, or the consent by Issuer, the  Operating Partnership or the REIT to the institution of bankruptcy or insolvency  proceedings against it, or the filing by Issuer, the Operating Partnership or the REIT of a  petition or answer or consent seeking reorganization or relief under the Federal Bankruptcy  Act or any other applicable Federal or State law or law of the District of Columbia, or the  consent by Issuer, the Operating Partnership or the REIT to the filing of any such petition  or to the appointment of receiver, liquidator, assignee, trustee, sequestrator (or similar  official) of Issuer, the Operating Partnership or the REIT or of any substantial part of its  property, or the making by Issuer, the Operating Partnership or the REIT of an assignment  for the benefit of creditors, or the admission by Issuer, the Operating Partnership or the  REIT in writing of its inability to pay its debts generally as they become due, or the taking  of limited liability company action by Issuer, the Operating Partnership or the REIT in  furtherance of any such action;   (f) a failure by Issuer to maintain the Minimum Required Collateralization  Level, if Issuer does not cure such action, occurrence or event within 30 Business Days of  the earlier of (i) receipt of written notice from Farmer Mac requesting that it be cured, or  (ii) the first day on which Issuer becomes aware of such failure;   (g) a failure or breach by the REIT to comply with any of the Financial  Covenants set forth herein, provided that the REIT shall have thirty (30) calendar days  following written identification by Farmer Mac as to related failure or breach to cure the  same;   (h) the occurrence of a Change of Control without Farmer Mac’s prior written  consent;   (i) a default past any applicable cure period under any mortgage, deed of trust,  indenture, instrument or agreement under which there may be issued or by which there may  be secured or evidenced any indebtedness for money borrowed by the REIT or any  subsidiary of the REIT, whether such indebtedness now exists or is created after the date  hereof, if the principal amount of such indebtedness, together with the principal amount of  any other such indebtedness under which there has been a default, exceeds $50,000,000;  or  (j) any final judgment or order (not covered by insurance) for the payment of  money in excess of $50,000,000 in the aggregate for all such final judgments or orders  (treating any deductibles, self-insurance or retention as not so covered) shall be rendered  against the REIT or any subsidiary of the REIT and shall not be paid or discharged, and  there shall be any period of sixty (60) consecutive calendar days following entry of the  final judgment or order that causes the aggregate amount for all such final judgments or  orders outstanding and not paid or discharged against the REIT or any subsidiary of the  REIT to exceed $50,000,000 during which a stay of enforcement of such final judgment or  order, by reason of a pending appeal or otherwise, shall not be in effect.  

 

17  CHAR1\1753057v8 SECTION 7.02. Acceleration.  Upon the occurrence, and during the continuance, of an  Event of Default, Farmer Mac may, upon written notice to that effect to Issuer, declare the entire  principal amount of, and accrued interest on, the Bonds at the time outstanding to be immediately  due and payable.  Notwithstanding the foregoing, if a Bond Specific Payment Default has occurred  and is continuing with respect to one or more Bonds, Farmer Mac agrees to forbear from enforcing  its rights in the Qualified Loans supporting other Bonds issued hereunder for which there is no  Bond Specific Payment Default, which forbearance shall be for a period of 30 calendar days after  the Bond Specific Payment Default has occurred, during which time Issuer shall have the  opportunity to cure such item.   SECTION 7.03. Remedies Not Exclusive.  Upon the occurrence, and during the  continuance, of an Event of Default, Farmer Mac shall be entitled to take such other action as is  provided for by law, in this Agreement, or in any of the other Bond Documents, including  injunctive or other equitable relief.  ARTICLE VIII  MISCELLANEOUS  SECTION 8.01. GOVERNING LAW.    (a) EXCEPT AS SET FORTH IN SECTION 9.01 HEREOF, THIS  AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE  WITH, FEDERAL LAW.  TO THE EXTENT FEDERAL LAW INCORPORATES  STATE LAW, THAT STATE LAW SHALL BE THE LAWS OF THE STATE OF NEW  YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED THEREIN.  (b) EACH PARTY TO THIS AGREEMENT SUBMITS FOR ITSELF AND  IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND  UNCONDITIONALLY, TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED  STATES FEDERAL COURT LOCATED IN THE CITY OF NEW YORK, BOROUGH  OF MANHATTAN, FOR PURPOSES OF ANY LEGAL PROCEEDING ARISING OUT  OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS  CONTEMPLATED HEREBY. EACH PARTY TO THIS AGREEMENT  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,  ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING  OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT  AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A  COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY TO  THIS AGREEMENT HEREBY CONSENTS TO PROCESS BEING SERVED IN ANY  SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, OR  ANY DOCUMENT DELIVERED PURSUANT HERETO, BY THE MAILING OF A  COPY THEREOF, BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID,  RETURN RECEIPT REQUESTED, TO ITS RESPECTIVE ADDRESS SPECIFIED AT  THE TIME FOR NOTICES UNDER THIS AGREEMENT OR TO ANY OTHER  ADDRESS OF WHICH IT SHALL HAVE GIVEN WRITTEN NOTICE TO THE  OTHER PARTY HERETO. THE FOREGOING SHALL NOT LIMIT THE ABILITY OF  

 

18  CHAR1\1753057v8 ANY PARTY HERETO TO BRING SUIT IN THE COURTS OF ANY OTHER  JURISDICTION.  SECTION 8.02. WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT  IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR  INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE  TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,  TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO  REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS  REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD  NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER  AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN  INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE  MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.02.  SECTION 8.03. Notices.  All demands, notices, instructions and other communications  required or permitted to be given hereunder shall be in writing and shall be addressed as specified  in Schedule I attached hereto as appropriate except as otherwise provided herein.  The address,  telephone number, email address or facsimile number for any party may be changed at any time  and from time to time upon written notice given by such changing party to the other parties hereto.   A properly addressed notice or other communication shall be deemed to have been delivered to  the party or parties to which it is given at the time it is sent by registered or certified mail, postage  prepaid, return receipt requested, addressed as set forth in Schedule I, with a copy also to be sent  by email or facsimile (fax) transmission.  SECTION 8.04. Benefit of Agreement.  This Agreement shall become effective when  it shall have been executed by Farmer Mac, the Purchaser and the Issuer, and thereafter shall be  binding upon and inure to the respective benefit of the parties and their permitted successors and  assigns.  SECTION 8.05. Entire Agreement.  This Agreement, including the Schedules and  Annexes hereto, and the other Bond Documents, constitute the entire agreement between the  parties hereto concerning the matters contained herein or therein, as applicable, and supersede all  prior oral and written agreements and understandings between the parties that relate to such subject  matter.  SECTION 8.06. Amendments and Waivers.  (a) No provision of this Agreement may be amended or modified except  pursuant to an agreement in writing entered into by Farmer Mac, the Purchaser and the  Issuer.  No provision of this Agreement may be waived except in writing by the party or  parties receiving the benefit of and under such provision.  (b) No failure or delay of Farmer Mac, the Purchaser or the Issuer in exercising  any power or right hereunder shall operate as a waiver thereof, nor shall any single or  partial exercise of any such right or power, or any abandonment or discontinuance of steps  

 

19  CHAR1\1753057v8 to enforce such a right or power, preclude any other or further exercise thereof or the  exercise of any other right or power.  No waiver of any provision of this Agreement or  consent to any departure by Issuer therefrom shall in any event be effective unless the same  shall be authorized as provided in paragraph (a) of this Section 8.06, and then such waiver  or consent shall be effective only in the specific instance and for the purpose for which  given.  No notice or demand on Issuer in any case shall entitle Issuer to any other or further  notice or demand in similar or other circumstances.  SECTION 8.07. Counterparts.  This Agreement may be executed in two or more  counterparts, each of which shall be an original, but all of which together shall constitute one and  the same instrument.  Signatures to this Agreement transmitted by electronic means shall be valid  and effective to bind the party so signing. A failure to deliver an execution original to this  Agreement shall not affect the enforceability of this Agreement, it being expressly agreed that each  party hereto shall be bound by its own electronically transmitted signature and accept the  electronically transmitted signature of each of the other parties hereto.  SECTION 8.08. Termination of Agreement.  This Agreement shall terminate upon the  indefeasible payment in full of all amounts payable hereunder and under the Bonds issued pursuant  to this Agreement from time to time in accordance with their terms (or as otherwise permitted in  writing by Farmer Mac). Farmer Mac and the Purchaser may elect, by notice in writing to the other  parties hereto, to terminate this Agreement during any period when no Bonds are outstanding  pursuant to this Agreement.  SECTION 8.09. Survival.  The representations and warranties of each of the parties  hereto contained in this Agreement and contained in each of the other Bond Documents, and the  parties’ obligations under any and all thereof, shall survive and shall continue in effect following  the execution and delivery of this Agreement, any disposition of the Bonds and the expiration or  other termination of any of the other Bond Documents, but, in the case of each Bond Document,  shall not survive the expiration or the earlier termination of such Bond Document, except to the  extent expressly set forth in such Bond Document.  SECTION 8.10. Severability.  If any term or provision of this Agreement or any Bond  Document or the application thereof to any circumstance shall, in any jurisdiction and to any  extent, be invalid or unenforceable, such term or such provision shall be ineffective as to such  jurisdiction to the extent of such invalidity or unenforceability without invalidating or rendering  unenforceable any remaining terms or provisions of such Bond Document or the application of  such term or provision to circumstances other than those as to which it is held invalid or  unenforceable.  SECTION 8.11. Expenses; Indemnity; Damage Waiver.    (a) Costs and Expenses.  The Issuer shall pay (i) all reasonable and documented  out of pocket expenses incurred by the Purchaser, the Collateral Agent, Farmer Mac and  their affiliates (including the reasonable fees, charges and disbursements of counsel for the  Purchaser, the Collateral Agent and Farmer Mac) in connection with the preparation,  negotiation, execution, delivery and administration of this Agreement and the other Bond  Documents, or any amendments, modifications or waivers of the provisions hereof or  

 

20  CHAR1\1753057v8 thereof (whether or not the transactions contemplated hereby or thereby shall be  consummated) and (ii) all reasonable and documented out of pocket expenses incurred by  the Purchaser, the Collateral Agent or Farmer Mac (including the fees, charges and  disbursements of any counsel for the Purchaser, the Collateral Agent or Farmer Mac), in  connection with the enforcement or protection of its rights (A) in connection with this  Agreement and the other Bond Documents, including its rights under this Section, or (B)  in connection with the Bonds purchased hereunder, including all such out of pocket  expenses incurred during any workout, restructuring or negotiations in respect of such  Bonds.   (b) Indemnification by the Issuer.  The Issuer shall indemnify the Purchaser,  the Collateral Agent (and any sub-agent thereof) and Farmer Mac, and each Related Party  of any of the foregoing Persons (each such Person being called an “Indemnitee”) against,  and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities  and related expenses (including the fees, charges and disbursements of any counsel for any  Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any Person  (including the Issuer or any affiliate of the Issuer and the expense of investigation) other  than such Indemnitee and its Related Parties arising out of, in connection with, or as a result  of (i) the execution or delivery of this Agreement, any other Bond Document or any  agreement or instrument contemplated hereby or thereby, the performance by the parties  hereto of their respective obligations hereunder or thereunder or the consummation of the  transactions contemplated hereby or thereby, (ii) the issuance of any Bond by Issuer or the  use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release  of Hazardous Materials on or from any property owned or operated by the Issuer or any of  its affiliates, or any Environmental Liability related in any way to the Issuer or any of its  affiliates, or (iv) any actual or prospective claim, litigation, investigation or proceeding  relating to any of the foregoing, whether based on contract, tort or any other theory, whether  brought by a third party or by the Issuer or any of its affiliates, and regardless of whether  any Indemnitee is a party thereto; provided that such indemnity shall not, as to any  Indemnitee, be available to the extent that such losses, claims, damages, liabilities or  related expenses (x) result from a dispute solely between Indemnitees and not (1) involving  any action or inaction by the Issuer or any of its affiliates or (2) relating to any action of  such Indemnitee in its capacity as Collateral Agent, (y) are determined by a court of  competent jurisdiction by final and nonappealable judgment to have resulted from the gross  negligence or willful misconduct of such Indemnitee or (z) result from a claim brought by  the Issuer or any of its affiliates against an Indemnitee for breach in bad faith of such  Indemnitee's obligations hereunder or under any other Bond Document, if the Issuer or  such affiliate has obtained a final and nonappealable judgment in its favor on such claim  as determined by a court of competent jurisdiction.    (c) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by  applicable law, the Issuer shall not assert, and hereby waives, any claim against any  Indemnitee, on any theory of liability, for special, indirect, consequential or punitive  damages (as opposed to direct or actual damages) arising out of, in connection with, or as  a result of, this Agreement, any other Bond Document or any agreement or instrument  contemplated hereby, the transactions contemplated hereby or thereby, any Bond or the use  of the proceeds thereof.  No Indemnitee referred to in this Section 8.11 shall be liable for  

 

21  CHAR1\1753057v8 any damages arising from the use by unintended recipients of any information or other  materials distributed by it through telecommunications, electronic or other information  transmission systems in connection with this Agreement or the other Bond Documents or  the transactions contemplated hereby or thereby.  (d) Payments.  All amounts due under this Section shall be payable not later  than fifteen (15) days after demand therefor.  (e) Survival.  Each party’s obligations under this Section 8.11 shall survive the  resignation of the Collateral Agent or any assignment of rights by the Purchaser or Farmer  Mac, the termination of the commitments and the repayment, satisfaction or discharge of  all obligations under any Bond Document.  SECTION 8.12. Amendment and Restatement.  The parties to the Existing Agreement  each hereby agree that, at such time as this Agreement shall have become effective pursuant to the  terms of Section 3.03, (a) the Existing Agreement automatically shall be deemed amended and  restated in its entirety by this Agreement, and (b) this Agreement shall govern all aspects of the  terms and conditions governing the rights and obligations of the parties with respect to all  AgVantage Bonds issued by Issuer under the Existing Agreement as well as any additional  AgVantage Bonds issued by Issuer in the future from time to time under this Agreement.  All  indebtedness, obligations, liabilities and liens created by the Existing Agreement shall continue  unimpaired and in full force and effect, as amended and restated in this Agreement.  This  Agreement is not a novation of the Existing Agreement.  ARTICLE IX  GUARANTEE  SECTION 9.01. Guarantee.  (a) The Guarantor agrees to pay in full to the holder of each Bond, the principal  of, and interest on, the Bonds when due, whether at maturity, upon redemption or otherwise  (the “Guaranteed Obligations”), on the applicable due date for such payment.  (b) The Guarantor’s obligations hereunder shall inure to the benefit of and shall  be enforceable by any holder of a Bond if, for any reason beyond the control of such holder,  such holder shall have failed to receive the interest or principal, as applicable, payable to  such holder any payment date, redemption date or stated maturity date.  The Guarantor  hereby irrevocably agrees that its obligations hereunder shall be unconditional, irrespective  of the validity, legality or enforceability of, or any change in or amendment to, this  Agreement, the Pledge Agreement or any Bond, the absence of any action to enforce the  same, the waiver or consent by the holder of any Bond or by the Collateral Agent with  respect to any provisions of this Agreement or the Pledge Agreement, or any action to  enforce the same or any other circumstance that might otherwise constitute a legal or  equitable discharge or defense of a guarantor.  The Guarantor hereby waives diligence,  presentment, demand of payment, protest or notice with respect to each Bond or the interest  

 

22  CHAR1\1753057v8 represented thereby, and all demands whatsoever, and covenants that the guarantee will  not be discharged except upon complete irrevocable payment of the principal and interest  obligations represented by the Bonds.  (c) The Guarantor shall be subrogated to and is hereby assigned all rights of the  holder of the Bonds against Issuer and the proceeds of the Qualified Collateral, all in  respect of any amounts paid by the Guarantor pursuant to the provisions of the guarantee  contained in this Article IX.  Each holder shall execute and deliver to the Guarantor in each  holder’s name such instruments and documents as the Guarantor may reasonably request  in writing confirming or evidencing such subrogation and assignment.  (d) No reference herein shall alter or impair the guarantee, which is absolute  and unconditional, of the due and punctual payment of principal of, and interest on, the  Bonds, on the dates such payments are due.  (e) The guarantee is not an obligation of, and is not a guarantee as to principal  or interest by the Farm Credit Administration, the United States or any other agency or  instrumentality of the United States (other than the Guarantor).  (f) The guarantee shall be governed by, and construed in accordance with,  Federal law.  To the extent Federal law incorporates state law, that state law shall be the  laws of the State of New York applicable to contracts made and performed therein.  SECTION 9.02. Control by the Guarantor.  If the Guarantor is the Control Party, the  Guarantor shall be considered the holder of all Bonds outstanding for all purposes under the Pledge  Agreement and shall be permitted to take any and all actions permitted to be taken by the holder  thereunder.  The Control Party will have the sole right to direct the time, method and place of  conducting any proceeding for any remedy available to the Collateral Agent or any holder with  respect to the Bonds or exercising any power conferred on the Collateral Agent with respect to the  Bonds provided that:  (a) such direction shall not be in conflict with any rule of law or with the Pledge  Agreement;  (b) the Collateral Agent shall have been provided with indemnity from the  Control Party reasonably satisfactory to it; and  (c) the Collateral Agent may take any other action deemed proper by such  Collateral Agent that is not inconsistent with such direction, provided, however, that the  Collateral Agent need not take any action which it determines might expose it to liability.  [SIGNATURE PAGE FOLLOWS]  

 

 

 

 

 

Sch. I – pg. 1  CHAR1\1753057v8 SCHEDULE I  TO  BOND PURCHASE AGREEMENT  Addresses for Notices  1. The addresses referred to in Section 8.03 hereof, for purposes of delivering demands,  instructions, notices or other communications, are as follows:  If to the Purchaser or Farmer Mac:  Federal Agricultural Mortgage Corporation  1999 K Street, NW, 4th Floor  Washington, DC 20006  Fax: 202-872-7713  Email: Agvdeals@farmermac.com  Attention of: Director – Investments and Institutional Business Development  With a copy to:  Federal Agricultural Mortgage Corporation  1999 K Street, NW, 4th Floor  Washington, DC 20006  Fax: 202-872-7713  Email: Treasury@farmermac.com  Attention of: Capital Markets Group  With a copy also to:  Federal Agricultural Mortgage Corporation  1999 K Street, NW, 4th Floor  Washington, DC 20006  Fax: 202-872-7713  Email: legal@farmermac.com  Attention of: General Counsel  If to Issuer:  Gladstone Lending Company, LLC   c/o Gladstone Land Corporation   1521 Westbranch Drive, Suite 100  McLean, Virginia 22102  Fax: 703-287-5801  Attn: Michael Licalsi  With copy to:  Gladstone Lending Company, LLC  

 

Sch. I – pg. 2  CHAR1\1753057v8 c/o Gladstone Land Corporation  1521 Westbranch Drive, Suite 100  McLean, Virginia 22102  Fax: 703-287-5801  Attn: Lewis Parrish and Jay Beckhorn  With a copy also to:  Bass Berry & Sims PLC  100 Peabody Place, Suite 1300  Memphis, TN 38103  Fax: 901-543-5946  Attention: Robert P. McDaniel, Jr.  

 

Sch. II – pg. 1  CHAR1\1753057v8 SCHEDULE II  TO  AGVANTAGE BOND PURCHASE AGREEMENT  FORM OF PRICING AGREEMENT  The Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the  United States and an institution of the Farm Credit System (“Farmer Mac”), Farmer Mac Mortgage  Securities Corporation, a wholly owned subsidiary of Farmer Mac (the “Purchaser”), and  Gladstone Lending Company, LLC (“Issuer”), a Delaware corporation, agree that, on  ____________ __, 20__ (the “Closing Date”), the Purchaser will purchase from Issuer and Issuer  will sell to the Purchaser $________ aggregate principal amount of [Fixed Rate] [Floating Rate]  AgVantage Bonds (the “Bonds”) with the following terms:  Bond Interest Rate:   [If interest on such Floating Rate Bonds is  calculated based on the London Interbank Offered Rate for U.S. Dollar deposits (“LIBOR”) and  if LIBOR shall be less than zero, such rate shall be deemed zero for purposes of this Pricing  Agreement.  Farmer Mac does not warrant, nor accept responsibility, nor any liability with respect  to the administration, submission or any other matter related to the rates in the definition of  “LIBOR” or with respect to any comparable or successor rate thereto.  Notwithstanding the  foregoing, if interest on such Floating Rate Bonds is calculated based on LIBOR and if Farmer  Mac determines that a Benchmark Transition Event (as defined on Schedule I hereto) has occurred,  or upon an Early Opt-In Election (as defined on Schedule I hereto), then LIBOR shall be replaced  by the Benchmark Replacement (as defined on Schedule I hereto) in accordance with the  procedures set forth in Schedule I hereto.]  [Initial Bond Interest Rate:  ]  [Floating Rate Index:  ]  [Interest Rate Margin:  ]  [Interest Rate Reset Dates: ]  Interest Payment Dates:   Interest Periods:   [The Bonds may not be prepaid at any time.][The Bonds may not be prepaid prior to ___________  __, 20__.  On or after __, 20__ the Bonds may be prepaid on the scheduled call dates set forth  herein, in whole [only] [or in part], at the option of Issuer, according to the terms of the Bond  Purchase Agreement (as defined below).][The Bonds may be prepaid in whole [only] [or in part]  at any time.]  [Scheduled call dates:  ]  Maturity Date:   

 

Sch. II – pg. 2  CHAR1\1753057v8 The Bonds shall be obligations of Issuer.  The issuance and sale of the Bonds by Issuer to the  Purchaser shall (i) be conditional upon the successful completion by Farmer Mac of a separate  offering of debt securities on the Closing Date, the proceeds of which it is contemplated will be  used by the Purchaser to finance the purchase of the Bonds and (ii) occur under the terms and  conditions of the Amended and Restated AgVantage Bond Purchase Agreement, dated as of  December 10, 2020, among Farmer Mac, the Purchaser and Issuer (as amended, restated, extended,  supplemented or otherwise modified in writing from time to time, the “Bond Purchase  Agreement”).  All of the provisions contained in the Bond Purchase Agreement are hereby  incorporated by reference in their entirety and shall be deemed to be a part of this Pricing  Agreement to the same extent as if such provisions had been set forth in full herein.  Capitalized  terms used herein and not defined herein shall have the meanings given to those terms in the Bond  Purchase Agreement.  This Pricing Agreement may be executed in two or more counterparts.  In the event of any inconsistency between the terms of this Pricing Agreement and the Bond  Purchase Agreement, the terms of this Pricing Agreement shall apply.  

 

Sch. II – pg. 3  CHAR1\1753057v8 Agreed to this __ day of _________________, 20__.  Federal Agricultural Mortgage Corporation  By:  ___________________________________   Name:   Title:  Farmer Mac Mortgage Securities Corporation  By:  ___________________________________   Name:   Title:  Gladstone Lending Company, LLC,   a Delaware limited liability company  By: Gladstone Land Limited Partnership, a  Delaware limited partnership, its sole member  and manager  By: Gladstone Land Partners, LLC, a Delaware  limited liability company, its General Partner  By: Gladstone Land Corporation, a Maryland  corporation, its Manager  By:  ___________________________________  Name:  Title:  

 

Sch. II – pg. 4  CHAR1\1753057v8 SCHEDULE I  TO  PRICING AGREEMENT  BENCHMARK REPLACEMENT SETTING   (a) Benchmark Replacement. Notwithstanding anything to the contrary herein  or in any other Bond Document, if a Benchmark Transition Event or an Early Opt-in  Election, as applicable, and its related Benchmark Replacement Date have occurred prior  to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if  a Benchmark Replacement is determined in accordance with clause (1) or (2) of the  definition of “Benchmark Replacement” for such Benchmark Replacement Date, such  Benchmark Replacement will replace such Benchmark for all purposes hereunder and  under any Bond Document in respect of such Benchmark setting and subsequent  Benchmark settings without any amendment to, or further action or consent of any other  party to, the Bond Purchase Agreement or any other Bond Document and (y) if a  Benchmark Replacement is determined in accordance with clause (3) of the definition of  “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark  Replacement will replace such Benchmark for all purposes hereunder and under any Bond  Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time)  on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is  provided to the Issuer without any amendment to, or further action or consent of any other  party to, the Bond Purchase Agreement or any other Bond Document so long as Farmer  Mac has not received, by such time, written notice of objection to such Benchmark  Replacement from the Issuer.   (b) Benchmark Replacement Conforming Changes. In connection with the  implementation of a Benchmark Replacement, Farmer Mac will have the right to make  Benchmark Replacement Conforming Changes from time to time and, notwithstanding  anything to the contrary herein or in any other Bond Document, any amendments  implementing such Benchmark Replacement Conforming Changes will become effective  without any further action or consent of any other party to the Bond Purchase Agreement  or any other Bond Document.   (c) Notices; Standards for Decisions and Determinations. Farmer Mac will  promptly notify the Issuer of (i) any occurrence of a Benchmark Transition Event or an  Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the  implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark  Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a  Benchmark pursuant to clause (d) below and (v) the commencement or conclusion of any  Benchmark Unavailability Period. Any determination, decision or election that may be  made by Farmer Mac pursuant to this Schedule titled “Benchmark Replacement Setting,”  including any determination with respect to a tenor, rate or adjustment or of the occurrence  or non-occurrence of an event, circumstance or date and any decision to take or refrain  from taking any action or any selection, will be conclusive and binding absent manifest  error and may be made in its or their sole discretion and without consent from any other  

 

Sch. II – pg. 5  CHAR1\1753057v8 party to the Bond Purchase Agreement or any other Bond Document, except, in each case,  as expressly required pursuant to this Schedule titled “Benchmark Replacement Setting.”   (d) Unavailability of Tenor of Benchmark. Notwithstanding anything to the  contrary herein or in any other Bond Document, at any time (including in connection with  the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a  term rate (including Term SOFR or LIBOR) and either (A) any tenor for such Benchmark  is not displayed on a screen or other information service that publishes such rate from time  to time as selected by Farmer Mac in its reasonable discretion or (B) the regulatory  supervisor for the administrator of such Benchmark has provided a public statement or  publication of information announcing that any tenor for such Benchmark is or will be no  longer representative, then Farmer Mac may modify the interest period for any Benchmark  settings at or after such time to remove such unavailable or non-representative tenor and  (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently  displayed on a screen or information service for a Benchmark (including a Benchmark  Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no  longer be representative for a Benchmark (including a Benchmark Replacement), then  Farmer Mac may modify the interest period for all Benchmark settings at or after such time  to reinstate such previously removed tenor.   (e) Benchmark Unavailability Period. Upon the Issuer’s receipt of notice of  the commencement of a Benchmark Unavailability Period, the Issuer shall be deemed to  have revoked any Notice of Requested Borrowing for a Bond bearing interest at a LIBOR  rate to be made during any Benchmark Unavailability Period; provided that this shall not  prevent the Issuer from submitting a new Notice of Requested Borrowing.   (f) Certain Defined Terms. As used in this Schedule titled “Benchmark  Replacement Setting”:   “Available Tenor” means, as of any date of determination and with respect  to the then-current Benchmark, as applicable, any tenor for such Benchmark or  payment period for interest calculated with reference to such Benchmark, as  applicable, that is or may be used for determining the length of an interest period  pursuant to this Pricing Agreement as of such date and not including, for the  avoidance of doubt, any tenor for such Benchmark that is then-removed from the  interest period provisions pursuant to clause (d) of this Schedule titled “Benchmark  Replacement Setting.”   “Benchmark” means, initially, LIBOR; provided that if a Benchmark  Transition Event or an Early Opt-in Election, as applicable, and its related  Benchmark Replacement Date have occurred with respect to LIBOR or the then- current Benchmark, then “Benchmark” means the applicable Benchmark  Replacement to the extent that such Benchmark Replacement has replaced such  prior benchmark rate pursuant to clause (a) of this Schedule titled “Benchmark  Replacement Setting.”   

 

Sch. II – pg. 6  CHAR1\1753057v8 “Benchmark Replacement” means, for any Available Tenor, the first  alternative set forth in the order below that can be determined by Farmer Mac for  the applicable Benchmark Replacement Date:   (1) the sum of: (a) Term SOFR and (b) the related Benchmark  Replacement Adjustment;   (2) the sum of: (a) Daily Simple SOFR and (b) the related  Benchmark Replacement Adjustment;   (3) the sum of: (a) the alternate benchmark rate that has been  selected by Farmer Mac as the replacement for the then-current Benchmark  for the applicable Corresponding Tenor giving due consideration to (i) any  selection or recommendation of a replacement benchmark rate or the  mechanism for determining such a rate by the Relevant Governmental Body  or (ii) any evolving or then-prevailing market convention for determining a  benchmark rate as a replacement for the then-current Benchmark for U.S.  dollar-denominated syndicated or bilateral credit facilities at such time and  (b) the related Benchmark Replacement Adjustment;   provided that, in the case of clause (1), such Unadjusted Benchmark Replacement  is displayed on a screen or other information service that publishes such rate from  time to time as selected by Farmer Mac in its reasonable discretion. If the  Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above  would be less than the Floor, the Benchmark Replacement will be deemed to be the  Floor for the purposes of this Pricing Agreement and the other Bond Documents.   “Benchmark Replacement Adjustment” means, with respect to any  replacement of the then-current Benchmark with an Unadjusted Benchmark  Replacement for any applicable interest period and Available Tenor for any setting  of such Unadjusted Benchmark Replacement:   (1)  for purposes of clauses (1) and (2) of the definition of  “Benchmark Replacement,” the first alternative set forth in the order below  that can be determined by Farmer Mac:   (a)  the spread adjustment, or method for calculating or  determining such spread adjustment, (which may be a positive or  negative value or zero) as of the Reference Time such Benchmark  Replacement is first set for such interest period that has been  selected or recommended by the Relevant Governmental Body for  the replacement of such Benchmark with the applicable Unadjusted  Benchmark Replacement for the applicable Corresponding Tenor;  (b) the spread adjustment (which may be a positive or  negative value or zero) as of the Reference Time such Benchmark  Replacement is first set for such interest period that would apply to  the fallback rate for a derivative transaction referencing the ISDA  

 

Sch. II – pg. 7  CHAR1\1753057v8 Definitions to be effective upon an index cessation event with  respect to such Benchmark for the applicable Corresponding Tenor;  and   (2)  for purposes of clause (3) of the definition of “Benchmark  Replacement,” the spread adjustment, or method for calculating or  determining such spread adjustment, (which may be a positive or negative  value or zero) that has been selected by Farmer Mac for the applicable  Corresponding Tenor giving due consideration to (i) any selection or  recommendation of a spread adjustment, or method for calculating or  determining such spread adjustment, for the replacement of such  Benchmark with the applicable Unadjusted Benchmark Replacement by the  Relevant Governmental Body on the applicable Benchmark Replacement  Date or (ii) any evolving or then-prevailing market convention for  determining a spread adjustment, or method for calculating or determining  such spread adjustment, for the replacement of such Benchmark with the  applicable Unadjusted Benchmark Replacement for U.S. dollar  denominated syndicated or bilateral credit facilities;   provided that, in the case of clause (1) above, such adjustment is displayed  on a screen or other information service that publishes such Benchmark  Replacement Adjustment from time to time as selected by Farmer Mac in  its reasonable discretion.   “Benchmark Replacement Conforming Changes” means, with respect to  any Benchmark Replacement, any technical, administrative or operational changes  (including changes to the definition of “Business Day” in the Bond Purchase  Agreement, timing and frequency of determining rates and making payments of  interest, timing of borrowing requests or prepayment, conversion or continuation  notices, length of lookback periods, the applicability of breakage provisions, and  other technical, administrative or operational matters) that Farmer Mac decides  may be appropriate to reflect the adoption and implementation of such Benchmark  Replacement and to permit the administration thereof by Farmer Mac in a manner  substantially consistent with market practice (or, if Farmer Mac decides that  adoption of any portion of such market practice is not administratively feasible or  if Farmer Mac determines that no market practice for the administration of such  Benchmark Replacement exists, in such other manner of administration as Farmer  Mac decides is reasonably necessary in connection with the administration of this  Pricing Agreement and the other Bond Documents).   “Benchmark Replacement Date” means the earliest to occur of the  following events with respect to the then-current Benchmark:   (1)  in the case of clause (1) or (2) of the definition of  “Benchmark Transition Event,” the later of (a) the date of the public  statement or publication of information referenced therein and (b) the date  on which the administrator of such Benchmark (or the published component  

 

Sch. II – pg. 8  CHAR1\1753057v8 used in the calculation thereof) permanently or indefinitely ceases to  provide all Available Tenors of such Benchmark (or such component  thereof);   (2)  in the case of clause (3) of the definition of “Benchmark  Transition Event,” the date of the public statement or publication of  information referenced therein; or   (3)  in the case of an Early Opt-in Election, the sixth (6th)  Business Day after the date notice of such Early Opt-in Election is provided  to the Issuer, so long as Farmer Mac has not received, by 5:00 p.m. (New  York City time) on the fifth (5th) Business Day after the date notice of such  Early Opt-in Election is provided to the Issuer, written notice of objection  to such Early Opt-in Election from the Issuer.   For the avoidance of doubt, (i) if the event giving rise to the Benchmark  Replacement Date occurs on the same day as, but earlier than, the Reference Time  in respect of any determination, the Benchmark Replacement Date will be deemed  to have occurred prior to the Reference Time for such determination and (ii) the  “Benchmark Replacement Date” will be deemed to have occurred in the case of  clause (1) or (2) with respect to any Benchmark upon the occurrence of the  applicable event or events set forth therein with respect to all then-current Available  Tenors of such Benchmark (or the published component used in the calculation  thereof).  “Benchmark Transition Event” means the occurrence of one or more of  the following events with respect to the then-current Benchmark:   (1)  a public statement or publication of information by or on  behalf of the administrator of such Benchmark (or the published component  used in the calculation thereof) announcing that such administrator has  ceased or will cease to provide all Available Tenors of such Benchmark (or  such component thereof), permanently or indefinitely, provided that, at the  time of such statement or publication, there is no successor administrator  that will continue to provide any Available Tenor of such Benchmark (or  such component thereof);   (2) a public statement or publication of information by the  regulatory supervisor for the administrator of such Benchmark (or the  published component used in the calculation thereof), the Board of  Governors of the Federal Reserve System, the Federal Reserve Bank of  New York, an insolvency official with jurisdiction over the administrator  for such Benchmark (or such component), a resolution authority with  jurisdiction over the administrator for such Benchmark (or such component)  or a court or an entity with similar insolvency or resolution authority over  the administrator for such Benchmark (or such component), which states  that the administrator of such Benchmark (or such component) has ceased  

 

Sch. II – pg. 9  CHAR1\1753057v8 or will cease to provide all Available Tenors of such Benchmark (or such  component thereof) permanently or indefinitely, provided that, at the time  of such statement or publication, there is no successor administrator that  will continue to provide any Available Tenor of such Benchmark (or such  component thereof); or   (3) a public statement or publication of information by the  regulatory supervisor for the administrator of such Benchmark (or the  published component used in the calculation thereof) announcing that all  Available Tenors of such Benchmark (or such component thereof) are no  longer representative. For the avoidance of doubt, a “Benchmark Transition  Event” will be deemed to have occurred with respect to any Benchmark if  a public statement or publication of information set forth above has occurred  with respect to each then-current Available Tenor of such Benchmark (or  the published component used in the calculation thereof).   “Benchmark Unavailability Period” means the period (if any) (x)  beginning at the time that a Benchmark Replacement Date pursuant to clauses (1)  or (2) of that definition has occurred if, at such time, no Benchmark Replacement  has replaced the then-current Benchmark for all purposes hereunder and under any  Bond Document in accordance with this Schedule titled “Benchmark Replacement  Setting” and (y) ending at the time that a Benchmark Replacement has replaced the  then-current Benchmark for all purposes hereunder and under any Bond Document  in accordance with this Schedule titled “Benchmark Replacement Setting.”   “Corresponding Tenor” with respect to any Available Tenor means, as  applicable, either a tenor (including overnight) or an interest payment period having  approximately the same length (disregarding business day adjustment) as such  Available Tenor.   “Daily Simple SOFR” means, for any day, SOFR, with the conventions for  this rate (which will include a lookback) being established by Farmer Mac in  accordance with the conventions for this rate selected or recommended by the  Relevant Governmental Body for determining “Daily Simple SOFR” for business  loans; provided, that if Farmer Mac decides that any such convention is not  administratively feasible for Farmer Mac, then Farmer Mac may establish another  convention in its reasonable discretion.   “Early Opt-in Election” means, if the then-current Benchmark is LIBOR,  the occurrence of:   (1) a determination by Farmer Mac that at least five currently  outstanding U.S. dollar-denominated syndicated or bilateral credit facilities  at such time contain (as a result of amendment or as originally executed) a  SOFR-based rate (including SOFR, a term SOFR or any other rate based  upon SOFR) as a benchmark rate (and such credit facilities are identified in  

 

Sch. II – pg. 10  CHAR1\1753057v8 the notice to the Issuer described in clause (2) and are publicly available for  review), and   (2)  the election by Farmer Mac to trigger a fallback from LIBOR  and the provision by Farmer Mac of written notice of such election to the  Issuer.   “Floor” means the benchmark rate floor, if any, provided in this Pricing  Agreement initially (as of the execution of this Pricing Agreement, the  modification, amendment or renewal of this Pricing Agreement or otherwise) with  respect to LIBOR.   “ISDA Definitions” means the 2006 ISDA Definitions published by the  International Swaps and Derivatives Association, Inc. or any successor thereto, as  amended or supplemented from time to time, or any successor definitional booklet  for interest rate derivatives published from time to time by the International Swaps  and Derivatives Association, Inc. or such successor thereto.   “Reference Time” with respect to any setting of the then-current  Benchmark means (1) if such Benchmark is LIBOR, 11:00 a.m. (London time) on  the day that is two London banking days preceding the date of such setting, and (2)  if such Benchmark is not LIBOR, the time determined by Farmer Mac in its  reasonable discretion.   “Relevant Governmental Body” means the Board of Governors of the  Federal Reserve System or the Federal Reserve Bank of New York, or a committee  officially endorsed or convened by the Board of Governors of the Federal Reserve  System or the Federal Reserve Bank of New York, or any successor thereto.   “SOFR” means, with respect to any Business Day, a rate per annum equal  to the secured overnight financing rate for such Business Day published by the  SOFR Administrator on the SOFR Administrator’s Website on the immediately  succeeding Business Day.   “SOFR Administrator” means the Federal Reserve Bank of New York (or  a successor administrator of the secured overnight financing rate).   “SOFR Administrator’s Website” means the website of the Federal  Reserve Bank of New York, currently at http://www.newyorkfed.org, or any  successor source for the secured overnight financing rate identified as such by the  SOFR Administrator from time to time.   “Term SOFR” means, for the applicable Corresponding Tenor as of the  applicable Reference Time, the forward-looking term rate based on SOFR that has  been selected or recommended by the Relevant Governmental Body.   “Unadjusted Benchmark Replacement” means the applicable Benchmark  Replacement excluding the related Benchmark Replacement Adjustment.   

 

Annex A – pg. 1  CHAR1\1753057v8 ANNEX A  [FORM OF BOND]  GLADSTONE LENDING COMPANY, LLC  [__% Fixed][Floating] Rate Senior AgVantage Bond due ______________  __________________, 20__  FOR VALUE RECEIVED, the undersigned, GLADSTONE LENDING COMPANY,  LLC (the “Issuer”), hereby promises to pay to FARMER MAC MORTGAGE SECURITIES  CORPORATION, a wholly owned subsidiary of Farmer Mac (as defined below) (the  “Purchaser”), or registered assigns, the principal sum of ________________ MILLION  DOLLARS ($___,000,000.00) on ____________________________, together with interest  computed from the date hereof according to the terms of the Bond Purchase Agreement (as defined  below).  Payments of principal and interest on this Bond are to be made in lawful money of the  United States of America at such place as shall have been designated by written notice to Issuer  from the registered holder of this Bond as provided in the Bond Purchase Agreement referred to  below.  This Bond is issued pursuant to an Amended and Restated AgVantage Bond Purchase  Agreement, dated as of December 10, 2020, as well as the Pricing Agreement for $_______ [__%  Fixed][Floating] Rate Bonds dated as of ___________ __, 20__ (together, as amended, restated,  extended, supplemented or otherwise modified in writing from time to time, the “Bond Purchase  Agreement”), among the Issuer, the Purchaser and Federal Agricultural Mortgage Corporation  (“Farmer Mac”), and is entitled to the benefits thereof.  This Bond is also entitled to the benefits  of the Amended and Restated Pledge and Security Agreement, dated as of December 10, 2020, as  from time to time amended, supplemented or otherwise modified in writing, among the Issuer, the  Purchaser, Farmer Mac and the Collateral Agent named therein.  Capitalized terms used herein and not defined herein shall have the meanings given to those  terms in the Bond Purchase Agreement.  This Bond is a registered Bond and, upon surrender of this Bond for registration of transfer  or exchange, accompanied by a written instrument of transfer duly executed by the registered  holder hereof or such holder’s attorney duly authorized in writing, a new Bond will be issued to,  and registered in the name of, the transferee.  Prior to due presentment for registration of transfer,  Issuer may treat the person in whose name this Bond is registered as the owner hereof for the  purpose of receiving payment and for all other purposes, and Issuer will not be affected by any  notice to the contrary.  This Bond is the obligation of the Issuer.  [This Bond may not be prepaid at any time.][This Bond may not be prepaid prior to  _____________ __, 20__.  On or after ____________ __, 20__ this Bond may be prepaid at any   time, in whole [only] [or in part], at the option of Issuer, according to the terms of the Bond  Purchase Agreement and provided that, if such optional prepayment is made on a date other than  

 

Annex A – pg. 2  CHAR1\1753057v8 an Interest Payment Date, accrued interest on the principal amount hereof that is being prepaid  shall be payable through and excluding the date such optional prepayment is made.][This Bond is  prepayable at any time by Issuer, in whole [only] [or in part] at the option of Issuer on the terms  set forth in the Bond Purchase Agreement.]  If an Event of Default, as defined in the Bond Purchase Agreement, occurs and is  continuing, the principal of this Bond may be declared due and payable in the manner, at the price  and with the effect provided in the Bond Purchase Agreement.  This Bond shall be construed and enforced in accordance with, and the rights of Issuer and  the holder hereof shall be governed by, the laws of the State of New York, excluding choice-of- law principles of the law of the State of New York that would require the application of the laws  of another jurisdiction.  GLADSTONE LENDING COMPANY, LLC, a  Delaware limited liability company  By: GLADSTONE LAND LIMITED  PARTNERSHIP, a Delaware limited  partnership, its sole member and manager  By: GLADSTONE LAND PARTNERS, LLC, a  Delaware limited liability company, its General  Partner  By: GLADSTONE LAND CORPORATION, a  Maryland corporation, its Manager  By:  ___________________________________  Name:  Title:  

 

Annex B – pg. 1  CHAR1\1753057v8 ANNEX B  EXISTING BONDS AND EXISTING PRICING AGREEMENTS   Farmer  Mac  Bond ID  Amount   Interest  Rate  Closing Date Maturity Date  2015-5         $3,210,000.00  3.29% 12/22/2015 12/22/2022  2016-1        $4,431,000.00  2.98% 3/3/2016 2/24/2023  2016-2      $11,100,000.00  3.08% 3/3/2016 2/24/2023  2016-3        $1,020,000.00  2.87% 8/22/2016 8/22/2023  2017-2        $8,100,000.00  3.63% 1/12/2017 1/12/2024  2017-3        $8,100,000.00  3.53% 1/12/2017 1/12/2023  2017-4        $8,100,000.00  3.36% 1/12/2017 1/12/2022  2017-5        $3,225,000.00  4.05% 8/30/2017 8/30/2024  2018-1        $1,260,000.00  4.47% 3/13/2018 3/13/2028  2018-2      $10,356,000.00  4.45% 7/30/2018 7/24/2025  2018-3        $7,050,000.00  4.06% 8/17/2018 8/17/2021  2018-4        $4,110,000.00  4.57% 9/13/2018 9/13/2028  2019-1         $3,285,000.00  2.61% 12/11/2019 12/11/2020  2019-2      $10,568,000.00  2.61% 12/11/2019 12/11/2020  2020-1        $8,100,000.00  2.66% 1/10/2020 1/12/2024  

 

Annex C – pg. 1  CHAR1\1753057v8 ANNEX C  FORM OF REIT OFFICERS’ CERTIFICATE  We, ___________________________, and ___________________________, of  Gladstone Land Corporation, a Maryland corporation (the “REIT”), in connection with that certain  Amended and Restated AgVantage Bond Purchase Agreement dated as of December 10, 2020,  among Gladstone Lending Company, LLC, an indirectly owned subsidiary of the REIT, Farmer  Mac Mortgage Securities Corporation, and Federal Agricultural Mortgage Corporation (as  amended, restated, extended, supplemented or otherwise modified in writing from time to time,  the “Bond Purchase Agreement”), hereby certify on behalf of the REIT that as of the end of the  most recent Fiscal Quarter:  (1) the REIT’s Leverage Ratio is as follows:   a. Total Debt   b. Total Assets [(i) + (ii)]:   i. Land Asset Fair Value Adjustment:   ii. Total assets:   Leverage Ratio [(a) / (b)]: ___________________________  (2) the REIT’s Fixed Charge Coverage Ratio is as follows:   a. Aggregate EBITDA:   b. Aggregate Non-Cash Expenses:   c. Aggregate nonrecurring losses (or minus   nonrecurring gains):   d. Aggregate interest expense:   e. Aggregate Capitalized Interest:   f. Aggregate preferred dividend payments to the   extent required to be reflected as debt on the REIT’s   Financial Statements:   g. Aggregate Lease Payments:   h. Aggregate principal amount of all regularly scheduled   principal payments on outstanding debt for borrowed   money:    

 

Annex C – pg. 2  CHAR1\1753057v8 Fixed Charge Coverage Ratio   [((a) + (b) + (c))/((d) + (e) + (f) + (g) + (h))]: ________________  (3) to the best of our knowledge, the values set forth above in paragraphs (1)-(2) are  correct and accurate in all material respects.  (4) the REIT is in compliance with all of the Financial Covenants contained in the Bond  Purchase Agreement.  Capitalized terms used in this certificate shall have the meanings given to those terms in  the Bond Purchase Agreement.  DATED as of this _____ day of __________________________, __________.  GLADSTONE LAND CORPORATION  By:   Name:   Title:   By:   Name:   Title:   

 

Annex D – pg. 1  CHAR1\1753057v8 ANNEX D  FORM OF ISSUER OFFICERS’ CERTIFICATE  Officers’ Certificate  TO: Federal Agricultural Mortgage Corporation  We, ________________, and ________________, of Gladstone Land Corporation, the  Manager of Gladstone Land Partners, LLC, the General Partner of Gladstone Land Limited  Partnership, the Sole Member and Manager of Gladstone Lending Company, LLC (“Issuer”),  pursuant to the Amended and Restated AgVantage Bond Purchase Agreement dated as of  December 10, 2020, among Issuer, Farmer Mac Mortgage Securities Corporation, and Federal  Agricultural Mortgage Corporation (as amended, restated, extended, supplemented or otherwise  modified in writing from time to time, the “Bond Purchase Agreement”), hereby certify on behalf  of Issuer that as at the date hereof:  (1) Issuer is an institution organized as a Delaware limited liability company with the  appropriate expertise, experience and qualifications to make agricultural mortgage loans to the  Borrowers;  (2) no Material Adverse Change has occurred;  (3) the representations and warranties of Issuer contained in Section 5.02 of the Bond  Purchase Agreement are true and correct in all material respects except with respect to  representations or warranties that relate to an earlier date or time, in which case such  representations and warranties were true and correct as of such earlier date or time;  (4) no Event of Default exists; and  (5) Issuer has caused the REIT to provide a certification by any president, vice  president, chief financial officer or treasurer of the REIT to Farmer Mac, substantially in the form  of Annex C attached to the Bond Purchase Agreement, regarding the REIT’s compliance with the  Financial Covenants contained therein.  Capitalized terms used in this certificate shall have the meanings given to those terms in  the Bond Purchase Agreement.  DATED as of this _____ day of ____________________, ____.  By:   Name:   Title:   By:   Name:   Title:   

 

Sch. A – pg. 1  CHAR1\1753057v8 ANNEX E  QUALIFIED LOAN REPORT  

 

Sch. A – pg. 1  CHAR1\1753057v8 Schedule A  Pledged Collateral   Issuer Name:    Dated:   Bond Number:   Loan  Number  Borrower Last  Name  Relationship ID Note Type  (see note 1)  Loan  Origination  Date  Maturity  Date  Amortization  Term   (months)  Payment  Frequency  (see note 2) Current Unpaid   Principal Balance  Original Loan  Amount  Current  Note  Rate  Loan  Delinquency Status (see  note 3)  Index Type  (see note 4) Adjustable  Reset Interval  (in months)  Next Reset Date Collateral Value  (see note 5)  Collateral  Property  State  Collateral  Property County Collateral  Property Type  Notes:  1. F= Fixed, A=Adjustable  2. 1 = monthly, 2 = quarterly, 4 = semi-annually, 12= annually  3. 0=Current, 1<30 days delinquent, 2<60 days delinquent, etc.  4. Index - 1 YR CMT, 3 YR CMT, 5 YR CMT, 7 YR CMT, 10 YR CMT, 3 month LIBOR, 6 month LIBOR, 12 month LIBOR, PRIME,  INTERNAL (lender’s own internal rate); Leave cell blank if not indexed  5. Original collateral value, or updated, if available  6. Loan numbers of identified relationships (cross collateralized, junior lien, wrapped, etc.); Data should be comma or tab delimited if multiple  relationships exist.  7. Type of relationship identified (cross collateralized, junior lien, wrapped, etc.)  

 

Sch. B – pg. 1  CHAR1\1753057v8 Schedule B  Pledged Collateral  Issuer Name:   Dated:   Bond Number:   Loan   Number  Borrower Last  Name  Relationship ID  Note  Type  (see  note 1) Loan   Origination  Date  Maturity Date Amortization   Term   (months)  Payment  Frequency  (see note  2)  Current Unpaid  Principal Balance Original Loan  Amount  Current  Note Rate  Loan  Delinquency Status (see  note 3)  Index Type  (see note 4)  Adjustable Reset  Interval (in  months)  Next Reset Date Collateral Value  (see note 5)  Collateral  Property  State  Collateral  Property County Collateral Property  Type  $ -  Notes:  1. F= Fixed, A=Adjustable  2. 1 = monthly, 2 = quarterly, 4 = semi-annually, 12= annually  3. 0=Current, 1<30 days delinquent, 2<60 days delinquent, etc.  4. Index - 1 YR CMT, 3 YR CMT, 5 YR CMT, 7 YR CMT, 10 YR CMT, 3 month LIBOR, 6 month LIBOR, 12 month LIBOR, PRIME,  INTERNAL (lender’s own internal rate); Leave cell blank if not indexed  5. Original collateral value, or updated, if available  6. Loan numbers of identified relationships (cross collateralized, junior lien, wrapped, etc.); Data should be comma or tab delimited if multiple  relationships exist.  7. Type of relationship identified (cross collateralized, junior lien, wrapped, etc.)  

 

CHAR1\1753057v8 Loan  Number  Cross 1 (see  Note 6)  Cross 2 (see  Note 6)  Cross 3 (see  Note 6)  Cross 4 (see  Note 6)  Cross 5 (see  Note 6)  Cross 6 (see  Note 6)  Cross 7 (see  Note 6)  Cross 8 (see  Note 6)  Cross 9  (see Note  6)  Cross 10  (see Note 6)  Relationship  (see Note 7) Notes:  1. F= Fixed, A=Adjustable  2. 1 = monthly, 2 = quarterly, 4 = semi-annually, 12= annually  3. 0=Current, 1<30 days delinquent, 2<60 days delinquent, etc.  4. Index - 1 YR CMT, 3 YR CMT, 5 YR CMT, 7 YR CMT, 10 YR CMT, 3 month LIBOR, 6  month LIBOR, 12 month LIBOR, PRIME, INTERNAL (lender’s own internal rate); Leave  cell blank if not indexed  5. Original collateral value, or updated, if available  6. Loan numbers of identified relationships (cross collateralized, junior lien, wrapped, etc.); Data  should be comma or tab delimited if multiple relationships exist.  7. Type of relationship identified (cross collateralized, junior lien, wrapped, etc.)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}]]