AMENDMENT NO. 4 TO EMPLOYMENT CONTRACT AGREED, as of the 8th day of February 1996, between the Federal Agricultural Mortgage Corporation (FAMC) and Henry D. Edelman (you), that the existing employment contract between the parties hereto, dated May 5, 1989, as amended by Employment Agreement Amendment No. 1 dated January 10, 1991, Amendment to Employment Agreement dated as of June 1, 1993 and Amendment No. 3 to Employment Contract dated as of June 1, 1994 (collectively, the Agreement), be and hereby is amended as follows: Sections 2 and 4 and subsections 9(a)(iii) and 9(d) of the Agreement are replaced in their entireties with the following new sections or subsections, as the case may be: 2. TERM. The term of this Agreement shall continue until June 1, 1999 or any earlier effective date of termination pursuant to Paragraph 9 hereof (the "Term"). 4. COMPENSATION. FAMC will pay to you the following aggregate compensation for all services rendered by you under this Agreement: (a) BASE SALARY. You will be paid a base salary (the Base Salary) during the Term of: Three Hundred Five Thousand Dollars ($305,000) per year effective from and including January 1, 1996 through May 31, 1996, payable in arrears on a bi- weekly basis; and Three Hundred Fifteen Thousand Dollars ($315,000) per year effective from and including June 1, 1996 through the remainder of the Term, payable in arrears on a biweekly basis; and (b) INCENTIVE COMPENSATION. In addition to your Base Salary, you will be paid an additional payment during the term of this Agreement in respect of work performed by you during the preceding Planning Year (June 1 through May 31), or portion thereof as follows: on June 1 of each year through and including the effective date of termination, an additional payment in an amount at the sole discretion of the Board of Directors if it determines that you have performed in an extraordinary manner your duties, pursuant to business plans proposed by management and approved by the Board of Directors, during the preceding Planning Year. 9(a)(iii) FAMC may terminate the employment of the Employee without "cause" at any time. Such termination shall become effective on the earlier of June 1, 1999 or two years from the date of notice of such termination. 9(d) Severance Pay. Upon termination of this Agreement pursuant to preceding subsection 9(a)(iii), FAMC shall pay you within thirty (30) days after such termination an aggregate amount in cash equal to one hundred percent (100%) of all Base Salary scheduled to be paid and not yet paid to you under this Agreement for the balance of the Term. In the event of severance of FAMC's employment of you pursuant to preceding subsections 9(a)(i) or (iii), the amount to be paid by FAMC to you hereunder will not be mitigated by any subsequent earnings by you from any source. Any other references in the Agreement to "annual Bonuses" or "levels of bonus" shall hereafter be deemed to refer to "Incentive Compensation." As amended hereby, the Agreement remains in full force and effect. Federal Agricultural Mortgage Corporation Employee By:_____________________________ _________________ Title: Chairman, Board of Directors