Document:

Exhibit
4.7

    

    FEDERAL
AGRICULTURAL MORTGAGE CORPORATION

     

    CERTIFICATE
OF DESIGNATION OF TERMS AND CONDITIONS

     

    of

     

    NON-VOTING
CUMULATIVE PREFERRED STOCK, SERIES C

     

    (par
value $1,000 per share)

     

    I, Jerome
G. Oslick, Corporate Secretary of the Federal Agricultural Mortgage Corporation,
a federally chartered instrumentality of the United States of America (the
“Corporation”),
do hereby certify that, pursuant to authority vested in the Board of Directors
of the Corporation (the “Board of Directors”)
by Section 8.4(e) of Title VIII of the Farm Credit Act of 1971, as
amended (12 U.S.C. §§2279aa-4(e)) (the “Act”), the Board of
Directors adopted resolutions on December 11, 2008, which resolutions are now,
and at all times since such date have been, in full force and effect, and that
the Acting President and Chief Financial Officer of the Corporation, pursuant to
the authority delegated to him by such resolutions, approved the final terms of
the issuance and sale of the preferred stock of the Corporation designated
below.

     

    The
Non-Voting Cumulative Preferred Stock, Series C, shall have the following
designation, powers, preferences, rights, privileges, qualifications,
limitations, restrictions, terms and conditions:

     

    1.            Designation, Par Value,
Number of Shares and Seniority.

     

    The class
of preferred stock of the Corporation created hereby (the “Preferred Stock”)
shall be designated “Non-Voting Cumulative Preferred Stock, Series C,” shall
have a par value of $1,000 per share (the “Par Value”) and a
liquidation preference per share equal to the Par Value (subject to adjustment
of such fixed dollar amount for any stock splits, stock dividends, combinations,
recapitalizations or similar transactions) plus Accumulated Dividends thereon
(the “Liquidation
Preference”), and shall consist of up to
75,000 shares.  The Preferred Stock shall, with respect to
dividend distributions and distributions upon a liquidation, dissolution or
winding up of the Corporation, rank (a) senior to (i) the Class A
Voting Common Stock, par value $1.00 per share, of the Corporation,
(ii) the Class B Voting Common Stock, par value $1.00 per share, of
the Corporation, (iii) the Class C Non-Voting Common Stock, par value
$1.00 per share, of the Corporation and (iv) any common stock of the Corporation
that may be issued after the date of this Certificate (the securities referred
to in sub-clauses (i) through (iv), collectively, the “Junior Stock”) and
(b) junior to (i) the Senior Cumulative Perpetual Preferred Stock, Series
B-1, par value $1,000 per share (the “Series B-1 Preferred
Stock”), of the Corporation, (ii) the Senior Cumulative Perpetual
Preferred Stock, Series B-2, par value $1,000 per share, of the Corporation and
(iii) the Senior Cumulative Perpetual Preferred Stock, Series B-3, par value
$1,000 per share, of the Corporation.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    2.            Dividends.

     

    (a)           The
holders of outstanding shares of the Preferred Stock shall be entitled to
receive, ratably, when and as declared by the Board of Directors, or a duly
authorized committee thereof, out of funds legally available for dividend
payments, cash dividends which compound quarterly at the annual rate of
(i) 5% of the then-applicable Liquidation Preference per share of Preferred
Stock, from the period commencing on the applicable Issue Date and ending on the
December 31st following the fifth anniversary of the applicable Issue Date,
(ii) 7% of the then-applicable Liquidation Preference per share of
Preferred Stock from and after the period commencing on the January 1st
following the fifth anniversary of the applicable Issue Date and ending on the
December 31st following the tenth anniversary of the applicable Issue Date,
and (iii) 9% of the then-applicable Liquidation Preference per share of
Preferred Stock from and after the period commencing on the January 1st
following the tenth anniversary of the applicable Issue Date and so long as the
Preferred Stock remains outstanding.  Dividends on the Preferred Stock
shall accrue and cumulate from and including the applicable Issue Date whether
or not declared and shall be payable quarterly in arrears when and as declared
by the Board of Directors on each Dividend Payment Date, beginning on the first
Dividend Payment Date following the applicable Issue Date.  If a
Dividend Payment Date is not a Business Day, the related dividend shall be paid
on the next Business Day with the same force and effect as though paid on the
Dividend Payment Date, without any increase to account for the period from such
Dividend Payment Date through the date of actual payment.  The “Dividend Period”
relating to a Dividend Payment Date shall be the period from, but not including,
the preceding Dividend Payment Date (or from and including the applicable Issue
Date in the case of the first Dividend Payment Date) through and including the
related Dividend Payment Date.  Dividends on the Preferred Stock shall
be computed based on a 360-day year consisting of twelve 30-day months, and
dividends on the Preferred Stock for any period less than a year shall be
computed based on a 360-day year consisting of twelve 30-day months and the
actual number of days elapsed in the period for which such dividends were
payable.  Dividends shall be paid to holders of record of
outstanding shares of the Preferred Stock as they appear in the books and
records of the Corporation on the record date, not to be earlier than 45 days
nor later than 10 days preceding the applicable Dividend Payment Date, as
shall be fixed by the Board of Directors from time to time.

     

    (b)           The
holders of shares of Preferred Stock shall be entitled to receive the dividends
provided for in Section 2(a)
hereof in preference to and in priority over any dividends upon any series or
class of Junior Stock.  So long as any shares of Preferred Stock are
outstanding, the Corporation shall not declare, pay or set apart for payment any
dividend on any Junior Stock, or make any payment on account of, or pay into or
set funds aside for a sinking fund for, the repurchase, redemption or other
acquisition or retirement of any Junior Stock or any Options or Convertible
Securities exercisable or exchangeable for, or convertible into, any Junior
Stock (other than the repurchase, redemption or other acquisition or retirement
for value of Junior Stock solely in exchange for Junior Stock), during or in
respect of any Dividend Period unless all cumulative dividends on the Preferred
Stock determined in accordance herewith have been or contemporaneously are
declared and paid in full (or declared and a sum of cash sufficient for the
payment thereof is set apart or reserved for such payment) for all Dividend
Periods terminating on or prior to the date of payment of such amounts on
account of or for such Junior Stock or any Options or Convertible Securities
exercisable or exchangeable for, or convertible into, any Junior Stock. The
Corporation shall take all actions necessary or advisable under the Act or any
other applicable law to permit the payment of the dividends provided for in
Section 2(a)
hereof to the holders of shares of Preferred Stock.  Holders
of shares of Preferred Stock shall not be entitled to any dividend, whether
payable in cash, in kind or other property in excess of the full dividends
provided for in Section 2(a)
hereof.

    
      
         

      

      
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    (c)           Notwithstanding
any other provision of this Certificate, the Board of Directors, in its
discretion, may choose to pay dividends on the Preferred Stock without the
payment of any dividends on the Junior Stock or on any other outstanding class
or series of stock ranking junior to the Preferred Stock with respect to the
payment of dividends.

     

    3.            Redemption.

     

    (a)           Subject
to receipt of the prior written approval of the Farm Credit Administration, if
required, and the consent of at least two-thirds of the then-outstanding shares
of the Series B-1 Preferred Stock, if any, on the first anniversary of the
applicable Issue Date and on each subsequent Dividend Payment Date (each such
date, a “Redemption
Date”), the Corporation shall, in its sole discretion, be entitled to
redeem some or all of the issued and outstanding shares of Preferred Stock at a
price per share equal to the then-applicable Liquidation Preference on the
Redemption Date (the “Redemption Amount”)
on the Redemption Date.

     

    (b)           In
the event that the Corporation elects to redeem some or all issued and
outstanding shares of Preferred Stock on any Redemption Date, not less than 30
days prior to the Redemption Date pursuant to Section 3(a)
hereof, the Corporation shall send a written notice (the “Redemption Notice”)
by first class mail to each holder of record of shares of Preferred Stock at
such holder’s registered address stating (i) the Redemption Date,
(ii) the Redemption Amount that will be payable with respect to the shares
of Preferred Stock on the Redemption Date and (iii) the place at which such
holder’s certificate(s) representing shares of Preferred Stock must be presented
for cancellation upon such redemption.

     

    (c)           On
or prior to the Redemption Date, the Corporation shall deposit cash equal to the
aggregate applicable Redemption Amount with a bank or trust corporation in good
standing and organized under the laws of the United States of America or any
jurisdiction thereof having aggregate capital and surplus in excess of
$1,000,000,000.  Such cash shall be deposited in a trust fund for the
benefit of the holders of shares of Preferred Stock.  The
Corporation shall issue to such bank or trust corporation irrevocable
instructions and authority to pay and/or transfer the allocable portion of the
applicable Redemption Amount for such shares of Preferred Stock to their
respective holders on or immediately after the applicable Redemption Date upon
receipt of the certificate(s) representing the shares of Preferred Stock to
be so redeemed.  Notwithstanding the deposit of funds, the Corporation
shall remain liable for the payment of the applicable Redemption Amount to the
extent such Redemption Amount is not paid as provided herein.  From
and after the applicable Redemption Date, unless there shall have been a default
in payment of the applicable Redemption Amount, all rights of the holders
of shares of Preferred Stock as holders of Preferred Stock (except the
right to receive the applicable Redemption Amount upon surrender of their
certificate(s)) shall cease and such shares shall not thereafter be
transferred on the transfer books of the Corporation or be deemed to be
outstanding for any purpose whatsoever.  Until the applicable
Redemption Amount for each issued and outstanding share of Preferred Stock shall
have been paid in full, each such share of Preferred Stock not so redeemed shall
remain outstanding for all purposes and entitle the holder thereof to all the
rights and privileges provided herein, including, without limitation, the
accrual and payment of dividends and conversion rights, and, if unpaid prior to
the date such shares are redeemed, shall be included as part of the
applicable Redemption Amount.

    
      
         

      

      
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    (d)           If
any Redemption Date is not a Business Day, payment of the applicable Redemption
Amount may be made on the next Business Day with the same force and effect as if
made on the applicable Redemption Date, and no interest, additional dividends or
other sums will accrue on the amount payable from the Redemption Date to the
next Business Day.

     

    (e)           The
Corporation may not, whether by any amendment of Title VIII of the Act or
Bylaws, by any reclassification or other change to its capital stock, by any
merger, consolidation or other combination involving the Corporation, by any
sale, conveyance or other transfer of assets, by the liquidation, dissolution or
winding up of the Corporation, or by any other way, impair or restrict the
redemption of shares of Preferred Stock pursuant to this Section 3, or
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Corporation, but will at all times in
good faith assist in the carrying out of all provisions of this Section 3 and in
the taking of all such action as may be necessary or appropriate in order to
protect the redemption rights of the holders of shares of Preferred Stock
against impairment to the extent required hereunder.

     

    4.            Voting
Rights.

     

    Except as
required by applicable law, holders of shares of Preferred Stock shall not
have any voting powers, either general or special.

     

    5.            Liquidation Rights and
Preference.

     

    (a)           Upon
the occurrence of a liquidation, dissolution or winding up of the Corporation,
holders of the then-outstanding shares of Preferred Stock shall be entitled
to receive and be paid out of the assets of the Corporation available for
distribution, before any payment or distribution shall be made to any holder
of shares of Junior Stock (without duplication of any Redemption Amounts
paid pursuant to Section 3
hereof) and after all payments and distributions have been made to holders of
securities of the Corporation that rank senior to the Preferred Stock, an amount
in cash equal to the then-applicable Liquidation Preference on the date of such
liquidation, dissolution or winding up of the Corporation.  If upon a
liquidation, dissolution or winding up of the Corporation, the assets of the
Corporation available for distribution are insufficient to pay the holders of
Preferred Stock the full Liquidation Preference upon the occurrence of such an
event, then all of the assets of the Corporation available for distribution
shall be distributed to the holders of then-outstanding shares of Preferred
Stock ratably in proportion to the full respective amounts to which they are
entitled.

     

    (b)     
     Neither the voluntary sale, conveyance, transfer,
lease or exchange of all or substantially all of the property or business of the
Corporation, nor the merger, consolidation or combination of the Corporation
into or with any other corporation or entity, shall be deemed to be a
liquidation, dissolution or winding up of the Corporation for the purpose of
this Section 5.  The
Corporation shall provide each holder of Preferred Stock notice no later than
five days after the Corporation or any of its subsidiaries becomes aware of any
fact, circumstance, event, change, violation, development, effect, condition or
occurrence which has given rise to, or could reasonably be expected to give rise
to, a liquidation, dissolution or winding up of the
Corporation.

    
      
         

      

      
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    6.            Additional Classes or
Series of Stock.

     

    The Board
of Directors shall have the right at any time in the future to authorize, create
and issue, by resolution or resolutions, one or more additional classes or
series of stock of the Corporation, and to determine and fix the distinguishing
characteristics and the relative rights, preferences, privileges and other terms
of the shares thereof.  Any such class or series of stock may
rank senior to, on a parity with or junior to the Preferred Stock as to
dividends, upon liquidation or otherwise.

     

    7.            Information
Rights.

     

    Upon the
reasonable request of any holder of shares of Preferred Stock, the
Corporation shall, and shall cause its representatives to, provide such
information (including, without limitation, periodic financial statements and
budgets) to the extent necessary for any such holder to satisfy any applicable
tax or regulatory requirements.

     

    8.            Amendments.

     

    Notwithstanding
anything to the contrary herein, the Corporation, upon approval of at least
two-thirds of the then-outstanding shares of Preferred Stock, may amend,
alter, supplement or repeal any provision of this Certificate pursuant to the
following terms and conditions:

     

    (a)           The
annual dividend rate, the Redemption Amount or the Liquidation Preference of the
Preferred Stock shall not be reduced without the unanimous consent of the
holders of all shares of Preferred Stock.

     

    (b)           Holders
of the Preferred Stock shall be entitled to one vote per share on matters on
which their consent is required pursuant to this Section 8.  Consents
shall be effective when duly executed and delivered to the
Corporation.  In connection with any meeting of such holders, the
Board of Directors shall fix a record date, neither earlier than 60 days
nor later than 10 days prior to the date of such meeting, and holders of
record of shares of the Preferred Stock on such record date shall be
entitled to notice of and to vote at any such meeting and any
adjournment.  The Board of Directors, or such person or persons as it
may designate, may establish reasonable rules and procedures as to the
solicitation of the consent of holders of the Preferred Stock at any such
meeting or otherwise, which rules and procedures shall conform to the
requirements of any national securities exchange on which the Preferred Stock
may be listed at such time.

     

    9.            Notices.

    Any
notice, demand or other communication that by any provision of this Certificate
is required or permitted to be given or served to or upon the Corporation shall
be given or served in writing addressed (unless and until another address shall
be published by the Corporation) to the Federal Agricultural Mortgage
Corporation, 1133 Twenty-First Street, N.W., Suite 600, Washington, D.C.
20036, Attention:  Vice President - General Counsel and
Secretary.  Such notice, demand or other communication to or upon the
Corporation shall be deemed to have been sufficiently given or made only upon
actual receipt of a writing by the Corporation.  Any notice, demand or
other communication that by any provision of this Certificate is required or
permitted to be given or served by the Corporation hereunder may be given or
served by being deposited first class, postage prepaid, in the United States
mail addressed (a) to the holder as such holder’s name and address may
appear at such time in the books and records of the Corporation or (b) if
to a person or entity other than a holder of record of the Preferred Stock, to
such person or entity at such address as it appears to the Corporation to be
appropriate at such time. Such notice, demand or other communication shall be
deemed to have been sufficiently given or made, for all purposes, upon
mailing.

     

    
      
         

      

      
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    10.          Definitions.

     

    As used
herein, the following terms shall have the following meanings:

     

    (a)           “Accumulated
Dividends” means, with respect to each share of Preferred Stock, as of
any date, an amount computed at the annual dividend rate for Preferred Stock,
from the applicable Issue Date to and including the date to which such dividends
are to be accrued (whether or not such dividends have been declared), less the
aggregate amount of all dividends previously paid on such share (subject to
adjustment of such dollar amount for any stock splits, stock dividends,
combinations, recapitalizations or similar transactions).

     

    (b)           “Act” shall have the
meaning set forth in the recitals.

     

    (c)           “Board of Directors”
shall have the meaning set forth in the recitals.

     

    (d)           “Business Day” means
any day other than a Saturday, Sunday or a day on which banks are required or
authorized to close in New York, New York.

     

    (e)           “Bylaws” means the
By-Laws of the Corporation.

     

    (f)           “Certificate” means
this Certificate of Designation of Terms and Conditions of Non-Voting Cumulative
Preferred Stock, Series C.

     

    (g)           “Convertible
Securities” means any bonds, debentures, notes or other evidence of
indebtedness, capital stock or other securities directly or indirectly
convertible into, or exercisable or exchangeable for, common stock of the
Corporation.

     

    (h)           “Corporation” shall
have the meaning ascribed to such term in the recitals.

     

    (i)           “Dividend Payment
Date” means March 31, June 30, September 30 and
December 31 of each year.

     

    (j)           “Dividend Period”
shall have the meaning ascribed to such term in Section 2(a)
hereof.

     

    (k)           “Issue Date” means,
with respect to each share of Preferred Stock, the date of the issuance of such
share of Preferred Stock.  Unless otherwise agreed between Farmer Mac
and a holder of Preferred Stock, the Issue Date with respect to the shares
evidenced by any stock certificate shall be the date of that
certificate.

     

    (l)           “Junior Stock” shall
have the meaning ascribed to such term in Section 1
hereof.

     

    
      
         

      

      
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    (m)           “Liquidation
Preference” shall have the meaning ascribed to such term in Section 1
hereof.

     

    (n)           “Options” means any
rights, options, warrants or similar securities to subscribe or exchange for,
purchase or otherwise acquire common stock of the Corporation or Convertible
Securities.

     

    (o)           “Par Value” shall have
the meaning ascribed to such term in Section 1 hereof.

     

    (p)           “Person” means any
individual, corporation (including not-for-profit), general or limited
partnership, limited liability company, joint venture, estate, trust,
association, organization, governmental entity or other entity of any kind or
nature.

     

    (q)           “Preferred Stock”
shall have the meaning ascribed to such term in Section 1
hereof.

     

    (r)           “Redemption Amount”
shall have the meaning ascribed to such term in Section 3(a)
hereof.

     

    (s)           “Redemption Date”
shall have the meaning ascribed to such term in Section 3(a)
hereof.

     

    (t)           “Redemption Notice”
shall have the meaning ascribed to such term in Section 3(b)
hereof.

     

    (u)           “Series B-1 Preferred
Stock” shall have the meaning ascribed to such term in Section 1
hereof.

     

    11.          Miscellaneous.

     

    (a)           The
Corporation and any agent of the Corporation may deem and treat the holder of a
share or shares of Preferred Stock, as shown in the Corporation’s books and
records, as the absolute owner of such share or shares of Preferred Stock for
the purpose of receiving payment of dividends and redemption proceeds in respect
of such share or shares of Preferred Stock and for all other purposes
whatsoever, and neither the Corporation nor any agent of the Corporation shall
be affected by any notice to the contrary. All payments made to or upon the
order of any such person shall be valid and, to the extent of the sum or sums so
paid, effectual to satisfy and discharge liabilities for moneys payable by the
Corporation on or with respect to any such share or shares of Preferred
Stock.

     

    (b)           The
shares of the Preferred Stock, when duly issued, shall be fully paid and
non-assessable.

     

    (c)           The
Preferred Stock shall be issued and shall be transferable on the books of the
Corporation, only in whole shares, it being intended that no fractional
interests in shares of Preferred Stock shall be created or recognized by the
Corporation.

     

    
      
         

      

      
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    (d)           For
purposes of this Certificate, the term the “Corporation” shall mean the Federal
Agricultural Mortgage Corporation and any successor thereto by operation of law
or by reason of a merger, consolidation or combination.

     

    (e)           This
Certificate and the respective rights and obligations of the Corporation and the
holders of the Preferred Stock with respect to such Preferred Stock shall be
construed in accordance with and governed by the laws of the United States,
provided that the law of the District of Columbia shall serve as the federal
rule of decision in all instances except where such law is inconsistent with the
Corporation’s enabling legislation, its public purposes or any provision of this
Certificate.

     

    (f)           RECEIPT
AND ACCEPTANCE OF A SHARE OR SHARES OF THE PREFERRED STOCK BY OR ON BEHALF OF A
HOLDER SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER (AND ALL
OTHERS HAVING BENEFICIAL OWNERSHIP OF SUCH SHARE OR SHARES) OF ALL OF THE TERMS
AND PROVISIONS OF THIS CERTIFICATE.  NO SIGNATURE OR OTHER FURTHER
MANIFESTATION OF ASSENT TO THE TERMS AND PROVISIONS OF THIS CERTIFICATE SHALL BE
NECESSARY FOR ITS OPERATION OR EFFECT AS BETWEEN THE CORPORATION AND THE HOLDER
(AND ALL SUCH OTHERS).

     

    (g)           Shares
of Preferred Stock which have been redeemed, repurchased or otherwise cancelled
shall be retired and have the status of authorized and unissued shares of
Preferred Stock, without designation as to series until such shares are
once more designated as a part of a particular series by the Board of
Directors.

     

    (h)           If
any right, power, preference, privilege or limitation of the Preferred Stock set
forth herein (as the same may be amended from time to time), is invalid,
unlawful or incapable of being enforced by reason of any rule of law or public
policy, all other rights, powers, preferences, privileges and limitations set
forth herein (as so amended) which can be given effect without the invalid,
unlawful or unenforceable right, power, preference, privilege or limitation
shall, nevertheless, remain in full force and effect, and no right, power,
preference, privilege or limitation herein set forth shall be deemed dependent
upon any other such right, power, preference, privilege or
limitation.

     

    (i)           The
headings of the various subdivisions hereof are for convenience of reference
only and shall not affect the interpretation of any of the provisions
hereof.

    
      
         

      

      
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    IN
WITNESS WHEREOF, this Certificate of Designation of Terms and Conditions of
Non-Voting Cumulative Preferred Stock, Series C, is executed on behalf of
the Corporation by its Acting President and Chief Executive Officer and attested
by its Corporate Secretary as of the 19th day of December 2008.

     

    
      
        
          
            
              	
                      FEDERAL
      AGRICULTURAL MORTGAGE CORPORATION

                    
	 	 
	
                      By:

                    	
                      /s/ Michael A. Gerber

                    
	 
      	
                      Name:    Michael
      A. Gerber

                    
	 
      	
                      Title:      Acting
      President and

                    
	 
      	
                                     Chief
      Executive
Officer

                    

            

          

        

      

    

    

    
      
        
          	
                  Attest:

                
	 
      	 
      
	
                  By:

                	
                  /s/ Jerome G. Oslick

                
	 
      	
                  Name:   Jerome
      G. Oslick

                
	 
      	
                  Title:    Corporate
      Secretary

                

        

      

    

    
      
         

      

      
        9Exhibit
10.2

     

    EMPLOYMENT
AGREEMENT

     

    EMPLOYMENT
AGREEMENT (this “Agreement”) made as of the first day of March, 2009, by and
between the Federal Agricultural Mortgage Corporation, a federally-chartered
instrumentality of the United States with its principal place of business at
1133 Twenty-First Street, N.W., Washington, D.C. (“FAMC” or “Farmer Mac”) and
Michael A. Gerber, residing at 3815 Batavia Elba Townline Road, Oakfield, NY
14125 (the “Employee”).

     

    By this
Agreement, FAMC and the Employee agree as follows:

     

    1.           Employment.  FAMC
employs the Employee, and the Employee accepts employment by FAMC pursuant to
this Agreement, as of the date first above written (the “Effective Date”) upon
the terms and conditions set forth in this Agreement.

     

    2.           Term. The Employee's
employment pursuant to this Agreement shall commence on the Effective Date and
shall continue until June 30, 2011 or any earlier effective date of termination
pursuant to Section 9 hereof (as it may be extended by mutual agreement of the
parties, the “Term”).

     

    3.           Scope of Authority and
Employment.

     

    (a)           Scope of
Authority.  The Employee shall be employed as an officer of
FAMC, with the title of President and Chief Executive Officer.  The
Employee shall report directly to the Board of Directors of FAMC (the "Board"),
and there shall be no other employee of FAMC with equal or senior
authority.  The Employee shall have responsibility for the
administrative and operational affairs of FAMC, as set forth in the Bylaws of
FAMC, subject to the general supervision and control of the Board.  In
addition, the Employee shall have those rights, duties, responsibilities and
authority normally reserved for officers with similar positions of similarly
situated companies, together with such other rights, duties, responsibilities
and authority as may be set forth in said Bylaws.

     

    (b)           Full Time
Employment.  The Employee shall devote his best efforts and
substantially all his time and endeavor to his duties hereunder, and shall not
engage in any other gainful occupation without the prior written consent of the
Board; provided, however, that this provision
shall not be construed to prevent the Employee from personally, and for his own
account or that of members of his immediate family, investing or trading in real
estate, stocks, bonds, securities, commodities, or other forms of investment, so
long as such investing or trading is not in conflict with the best interests of
FAMC.

     

    (c)           Place of
Employment.  The Employee shall be employed to perform his
duties under this Agreement at the principal office of
FAMC.  Notwithstanding this, it is expected that the Employee shall be
required to travel a reasonable amount of time in the performance of his duties
under this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.           Compensation.  FAMC
will pay to the Employee the following aggregate compensation for all services
rendered by the Employee under this Agreement:

     

    (a)           Base Salary.  The
Employee will be paid a base salary (the “Base Salary”) during the Term of Five
Hundred Thousand Dollars ($500,000) per year, payable in arrears on a bi-weekly
basis.  The Base Salary will be reviewed periodically by FAMC and may
be increased (but not decreased) in the sole discretion of the Board or the
Compensation Committee of the Board.

     

    (b)           Incentive
Compensation.  In addition to the Base Salary, the Employee
will be eligible to be paid an additional amount (the “Incentive Salary”) during
the Term in respect of work performed by during the preceding Planning Year
(July 1 through June 30), or portion thereof as follows:

     

    
      	
               
      

            	
              (i)

            	
              In
      respect of the Planning Year ending June 30, 2009, the Incentive Salary
      shall be paid in two (2) installments, a first installment in the amount
      of Two Hundred and Eight Thousand Three Hundred and Thirty Three Dollars
      ($208,333) shall be paid to the Employee by the later of:
      (a)  ten (10) business days of the Effective Date and (b) five
      (5) business days of the execution of this Agreement, and a second
      installment (the "Second Installment") of One Hundred Sixty Six Thousand
      Six Hundred and Sixty-Seven Dollars ($166,667) shall be paid when annual
      incentives are paid to FAMC executives generally in the third calendar
      quarter of 2009.  If the Employee voluntarily resigns his
      employment with FAMC (other than pursuant to Section 9(e)) or the
      Employee's employment is terminated by the Employer for cause, in either
      case on or before February 28, 2010, the Employee shall repay FAMC a
      portion of the Second Installment equal to the Second installment
      multiplied  by a fraction, (A) the numerator of which is 365
      minus the number of days between March 1, 2009 and the date of the
      Employee's termination of employment, and (B) the denominator of which is
      365.  

            

    

     

    
      	
               
      

            	
              (ii)

            	
              For
      the Planning Year commencing on July 1, 2009, the Employee will be covered
      by the Incentive Salary arrangement for such Planning Year applicable to
      senior executives of FAMC
generally.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              For
      subsequent Planning Years during the Term, the Employee shall be covered
      by the Incentive Salary arrangement for such Planning Year applicable to
      senior executives of FAMC generally, with any Incentive Salary determined
      pursuant to this sentence payable when annual incentives are paid to FAMC
      executives generally with respect to such Planning Year and subject to the
      Employee's continued employment through the applicable date of
      payment.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (c)           Long Term Incentive
Compensation.  In addition to the foregoing, effective as of
July 1, 2009, the Employee shall be granted long term incentive compensation in
an amount equal to Two Hundred Thousand Dollars ($200,000.00), in a form, and
subject to such conditions, as determined by the Board or the Compensation
Committee in its sole discretion.

     

    (d)           Base Salary
Differential.  The Employee will be paid a one-time lump sum
cash payment of Seventy-Two Thousand Nine Hundred Seventeen Dollars ($72,917),
payable by the later of: (a)  ten (10) business days of the Effective
Date and (b) five (5) business days of the execution of this
Agreement.  Such payment is intended to compensate the Employee for
the reduced base salary received by the Employee for the period commencing
October 1, 2008 through the Effective Date.

     

    (e)           One-Time Signing
Bonus.  The Employee will be paid a one-time lump sum cash
payment as a signing bonus (the “Signing Bonus”) in the amount of One Hundred
and Fifty Thousand Dollars ($150,000.00), payable by the later of:
(a)  ten (10) business days of the Effective Date and (b) five (5)
business days of the execution of this Agreement.  If the Employee
voluntarily resigns his employment with FAMC (other than pursuant to Section
9(e)) or the Employee's employment is terminated by the Employer for cause, in
either case on or before February 28, 2010, the Employee shall repay FAMC a
portion of the Signing Bonus equal to the Signing Bonus multiplied by a
fraction, (A) the numerator of which is 365 minus the number of days between
March 1, 2009 and the date of the Employee's termination of employment, and (B)
the denominator of which is 365.

     

    5.           Expenses.  FAMC
shall reimburse the Employee for his reasonable and necessary expenses incurred
in carrying out his duties under this Agreement, including, without limitation,
expenses for:  travel; attending business meetings, conventions and
similar gatherings; home and portable telephone bills; business entertainment
and professional association dues, in each case in accordance with FAMC's
policies as in effect from time-to-time. Reimbursement shall be made to the
Employee in accordance with FAMC’s standard expense reimbursement protocol after
presentation to FAMC of an itemized accounting and documentation of such
expenses in accordance with FAMC’s expense reimbursement policies.

     

    6.           Vacation and Sick
Leave.  The Employee shall be entitled to four (4) weeks of
paid vacation per year, with any vacation exceeding two consecutive weeks
requiring the advance approval of the Chairman of the Board.  Vacation
rights shall vest on July 10th of each year during the Term, and must be
exercised within fourteen (14) months thereafter or forfeited, unless FAMC
policy for non-contract employees provides for less restrictive vacation rights
carry-over.  The Employee shall be entitled to reasonable and
customary amounts of sick leave.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    7.           Employee
Benefits.   During the Term, FAMC will provide the
Employee with all employee benefits regularly provided to employees of FAMC and
the following other (or upgraded) benefits: the best level of personal and
family health insurance obtainable by FAMC on reasonable terms; an annual
medical examination; business travel and personal accident insurance; life
insurance in an amount approximately equal to the Employee’s base salary;
disability benefits at least equal to statutory benefits in the District of
Columbia; participation in the Farmer Mac Money Purchase Plan; and participation
in a savings plan established under Section 401(k) of the Internal Revenue
Code.  The providers of any insurance will be listed in Best’s Insurance
Guide.  All of the foregoing is subject to the limitation that the
total cost thereof will not exceed twenty five percent (25%) of the Employee's
Base Salary, exclusive of administrative expense.  In the event that such
cost limitation would be exceeded in any year, the Employee may be required to
select from among the foregoing a group of benefits within that cost
limitation.

     

    8.           Relocation
Expenses.  The Employee shall relocate his residence from that
stated in the first paragraph of this Agreement to the Washington, D.C.
metropolitan area.  In lieu of reimbursing the Employee’s moving and
ancillary expenses and providing other relocation assistance, FAMC shall pay the
Employee a one-time lump-sum cash payment in the amount of Seventy-Five Thousand
Dollars ($75,000) to cover packing, moving, and other ancillary expenses, to be
paid by the later of: (a) ten (10) business days of the Effective Date and
(b) five (5) business days of the execution of this Agreement.
Reimbursement for expenses for travel by Employee and his spouse between the
current residence in New York and Washington, DC shall also be paid to the
Employee promptly following his submission to FAMC of invoices
therefor.   Farmer Mac will also reimburse, or pay directly, the
Employee’s temporary living expenses in the DC metropolitan area for up to 180
days from the date of execution of this Agreement and, not later than 180 days
from the Date of execution of this Agreement, will purchase the residence at the
address in the first paragraph for an amount equal to the average of two
appraisals by appraisers acceptable to Farmer Mac.

     

    9.           Termination.

     

    (a)           Events of
Termination.  The Employee's employment shall be terminated and
the employment relationship between the Employee and FAMC shall be severed as
set forth below:

     

    (i)           FAMC
may terminate the employment of the Employee effective upon notice to the
Employee if the Employee dies or is incapacitated or disabled by accident,
sickness or otherwise so as to render him (in the opinion of an independent
medical consultant selected by the Board in its reasonable discretion) mentally
or physically incapable of performing the services required to be performed by
him under the terms of this Agreement for a period of at least ninety (90)
consecutive days, or for ninety (90) days (whether consecutive or not) during
any six-month period.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (ii)           FAMC
may terminate the employment of Employee effective upon notice to the Employee
at any time for “cause.”  For the purposes of this subsection, “cause”
shall mean only:  (A) the Employee’s material breach of an obligation
or representation under this Agreement or of any material fiduciary duty to
FAMC, or any willful act of fraud or willful misrepresentation or willful
concealment to FAMC or the Board, in each case that results or could reasonably
be expected to result in material harm to FAMC; (B) the Employee's material
failure to adhere to (i) any Code of Conduct in effect from time to time and
applicable to officers and/or employees generally or (ii) any written policy, in
each case that results or could reasonably be expected to result in material
harm to FAMC; (C)  the Employee is convicted of, or pleads guilty or
nolo contendere to, any felony or to a misdemeanor involving moral turpitude;
(D) the Employee's willful violation of any law relating to his employment with
FAMC (including, for the avoidance of doubt, any insider trading law); or (E)
conduct by the Employee in connection with his employment hereunder that
constitutes willful misconduct or willful neglect, in each case that results or
should reasonably be expected to result in material harm to
FAMC.   For purposes of this subsection, no act, or failure to
act on the Employee's part, shall be considered “willful” unless done, or
omitted to be done, by the Employee not in good faith and without reasonable
belief that the Employee's action or omission was in the best interests of
Farmer Mac.   For the avoidance of doubt, termination of the
Employee's employment for any reason upon the end of the Term shall not be
treated as a termination without Cause for purposes of this
Agreement.

     

    Notwithstanding
the foregoing, the Employee shall not be deemed to have been terminated for
cause unless and until there shall have been delivered to the Employee a copy of
a resolution, duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Board at a meeting of the Board
duly called and held for the purpose (after five (5) days’ prior written notice
to the Employee and an opportunity for him, together with his counsel, to be
heard before such meeting of the Board, finding that, in the good faith opinion
of the Board, the Employee was guilty of conduct set forth above in one or more
of clauses (A) through (E) of this Section 9(a)(ii) and specifying the
particulars in detail.  Such a resolution shall constitute notice of
termination hereunder.  In addition, the Board may place the Employee
on administrative leave at any time if it is considering whether the Employee's
employment may be terminated for cause.  In such event, during the
period the Employee is on administrative leave, the Employee shall continue to
receive the payments and benefits specified in Sections 4 and 7
hereof.

     

    (iii)           Farmer
Mac may terminate the employment of the Employee without “cause” at any
time.

     

    (iv)           Notwithstanding
the provisions of subsection 9(a)(iii) above, FAMC may terminate the employment
of the Employee at any time after the passage by the Board of a resolution
authorizing the dissolution of FAMC.  Such termination of the
Employee’s employment shall become effective on the later of eighteen (18)
months after notice of termination or the date that such dissolution of FAMC
becomes final as a matter of law, provided however,  that
neither of the following shall be deemed to be a dissolution for purposes of
this Agreement:  (1) dissolution of FAMC which becomes final as a
matter of law more than twelve (12) months after adoption of the resolution of
dissolution; or (2) incorporation, organization or reorganization of a
corporation or other business entity which is substantially similar to FAMC and
which uses substantially the same assets or equity as FAMC, within twelve (12)
months of adoption of the resolution of dissolution.  As used herein,
the term “reorganization” shall have the same meaning as in Section 368(a) of
the Internal Revenue Code of 1986, as amended.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (b)           Payment of Accrued
Compensation.

     

    (i)           Upon
termination of the Employee's employment pursuant to preceding subsection (a),
the Employee (or his estate or heirs, as the case may be) shall be entitled to
receive all Base Salary, annual incentive payments, expense reimbursements,
vacation pay, and similar amounts accrued and unpaid as of the date of such
termination.  With respect to annual incentive payments, the term
“accrued” means that the amount of the payment to the Employee has been
definitively determined by Farmer Mac but the payment has not been
made.  The obligations of FAMC under this subsection (b) shall survive
any termination of this Agreement.

     

    (ii)           In
the event of the Employee’s voluntary termination of employment hereunder, other
than pursuant to Section 9(e) below, FAMC shall not be obligated to make any
further compensation payments to Employee beyond those accrued prior to the
effective date of such termination.

     

    (c)           Disability
Pay.  Upon termination of the Employee's employment pursuant to
preceding subsection (a)(i), FAMC shall continue to pay the Employee (or his
estate or heirs, as the case may be) for the lesser of twenty-four (24) months
or the balance of the Term the difference between the Employee’s current Base
Salary and the amount of disability insurance payments received by the Employee
under insurance policies provided by FAMC in accordance with this
Agreement.

     

    (d)           Severance Pay.  Upon
termination of the Employee's employment pursuant to preceding subsection
9(a)(iii) or pursuant to Section 9(e) below, or as a result of the Farmer Mac's
decision not to extend the Term pursuant to Section 2 by offering the Employee
the right to continue employment pursuant to this Agreement, subject to the
Employee's execution of a release of claims mutually agreeable to the parties
within five (5) days following such termination and the Employee not revoking
such release, FAMC shall pay the Employee within thirty (30) days after such
termination an aggregate amount in cash equal to two times the Base
Salary.

     

    The
amount to be paid by FAMC to the Employee under this Section 9(d) will not be
mitigated by any subsequent earnings by the Employee from any other
source.

     

    (e)           Constructive
Termination.  The Employee may, at his option, terminate his
employment with FAMC if FAMC materially breaches its obligations hereunder, the
Employee so notifies FAMC of such breach in writing within thirty (30) days
after the breach occurs, and FAMC does not remedy such breach within thirty (30)
days after receiving such notice. Upon notice to FAMC of his exercise of this
option, the Employee shall have the same rights under such a constructive
termination as if FAMC had terminated his employment pursuant to the preceding
subsection (a)(iii); provided, however, that if FAMC determines that it could
have terminated the Employee's employment for "cause," the Employee shall have
no right to receive any amounts described in Section 9(d).

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    10.           Notices.  Any notice
given under this Agreement will be sufficient if in writing and
either:  (a) mailed postage prepaid by registered or certified mail,
return receipt requested; or (b) delivered by hand to, in the case of Farmer
Mac, 1133 Twenty-First Street, N.W., Washington, D.C. 20036, attention Vice
President – General Counsel or, in the case of the Employee, 3815 Batavia Elba
Townline Road, Oakfield, NY 14125 (or to such other addresses as may be from
time to time designated by notice from the recipient party to the
other).  Any such notice will be effective upon actual receipt or
refusal thereof.

     

    11.           Miscellaneous.

     

    (a)           Governing Law.  This
Agreement shall be governed by, interpreted and enforced in accordance with the
laws of the District of Columbia.

     

    (b)           Waiver.  The waiver
by any party of a breach of any provision of this Agreement shall not operate as
a waiver of any other breach of any provision of this Agreement by any
party.

     

    (c)           Entire
Agreement.  This Agreement sets forth the entire understanding
of the parties concerning the subject matter hereof, and may not be changed or
modified except by a written instrument duly executed by or on behalf of the
parties hereto.

     

    (d)           Successors and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective, successors, heirs,
personal representatives and assigns.  This subsection is not to be
construed to permit the Employee to assign his obligation to perform the duties
of his employment hereunder.  This subsection permits FAMC the right
to assign this Agreement to a successor entity.

     

    (e)           Severability.  If
any term, condition, or provision of this Agreement or the application thereof
to any party or circumstances shall, at any time or to any extent be invalid or
unenforceable, the remainder of this Agreement, or the application of such term,
condition or provision to parties or circumstances other than those to which it
is held invalid or unenforceable, shall not be affected thereby, and each term,
condition and provision of their Agreement shall be valid and enforceable to the
fullest extent permitted by law.

     

    (f)           Tax
Withholding.  All payments here under shall be subject to all
applicable tax withholdings.

     

    12.           Agreement Not to Compete with Farmer
Mac.  Notwithstanding anything in this Agreement to the
contrary, in the event of the termination of the Employee's employment either
for cause or at the discretion of the employee, for a period of two years
thereafter, the Employee shall not, without the prior written consent of Farmer
Mac, directly or indirectly, engage in any business or activity, whether as
principal, agent, officer, director, partner, employee, independent contractor,
consultant, stockholder or otherwise, alone or in association with any other
person, firm, corporation or other business organization, that directly or
indirectly competes with any of the businesses of Farmer Mac in any manner,
including without limitation, the acquisition and securitization (for capital
market sale) of agricultural mortgage loans or USDA “guaranteed portions”
(hereinafter referred to as “Farmer Mac Qualified Loans”); provided, however,
that such prohibited activity shall not include the ownership of up to 20% of
the common stock in a public company.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    13.           Agreement Not to Use Confidential or
Proprietary Information.  Farmer Mac and the Employee both
recognize that the Employee has access to and acquire, and may assist in
developing, confidential and proprietary information relating to the business
and operations of Farmer Mac as a result of the Employee's employment or
association with Farmer Mac.  The Employee hereby covenants and agrees
that he will retain all “Confidential Information” (as defined below) in trust
for the sole benefit of Farmer Mac and its successors and
assigns.  The Employee hereby covenants further that, in addition to
his fiduciary responsibilities as an officer not to disclose certain information
of or relating to Farmer Mac, he will not, at any time during or after the term
of this Agreement, without the prior written consent of Farmer Mac, directly or
indirectly communicate or divulge any such Confidential Information to any
person, firm, corporation or other business organization, or use any such
Confidential Information for the Employee's own account or for the account of
any other person, except as required in connection with the performance of his
services hereunder.  The term “Confidential Information” shall mean
any trade secret, data or other confidential or proprietary information related
to the business and activities of Farmer Mac.  Notwithstanding the
foregoing, Confidential Information shall not include any information that is or
becomes a part of the public domain or generally available to the public (unless
such availability occurs as a result of any breach by the Employee of this
Section 13), or becomes available to the Employee on a non-confidential basis
from a source (other than Farmer Mac) that is not bound by a confidentiality
agreement and does not breach his or her fiduciary
responsibilities.  The provisions of this Section 13 shall survive the
termination of this Agreement and the termination of the Employee's employment
hereunder.

     

    14.           Agreement Not to Solicit Farmer Mac
Employees.  For a period of two years after the termination of
the Employee's employment hereunder, the Employee shall not, directly or
indirectly, induce any employee of Farmer Mac who is a “member of management”
(as defined below) or is directly involved in the acquisition and securitization
(for capital market sale) of Farmer Mac Qualified Loans to engage in any
activity in which the Employee is prohibited from engaging in under this
Agreement, or to terminate such person’s employment with Farmer
Mac.  The Employee shall not directly or indirectly, either
individually or as owner, agent, employee, consultant or otherwise, employ,
offer employment to, lure, entice away or assist others in recruiting or hiring
any person who is or was employed by Farmer Mac unless such person shall have
ceased to be employed by Farmer Mac for a period of at least six months and is
not subject to any non-compete covenants substantially similar in nature to
those contained in Section 12 hereof.  “Member of management” means
the President, any Senior Vice President, Vice President or the Controller of
Farmer Mac.

    

    
      
        
          
            
              	
                      Federal
      Agricultural Mortgage Corporation

                    	 
      	
                      Employee

                    
	 
      	 
      	 
      	 
      
	
                      By:

                    	
                      /s/ Lowell L. Junkins

                    	 
      	
                      /s/ Michael A. Gerber

                    
	 
      	
                      Acting
      Chairman

                    	 
      	
                      Michael
      A. Gerber

                    

            

          

        

      

    

     

    
      
         

      

      
        8

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