exv10w30







 




    Exhibit
    10.30



	 	 	 	 	 
	
    
	
 
	
    CORPORATE POLICY
	
 
	
 









 




    Subject:
    Severance —
    Officers
    



 




    Policy
    Number:
    3-254.1
    



 




    Control
    Point:
    Director —
    Employee Relations
    



 




    Approval
    Authority:
    EVP —
    Human Resources
    



 




    Signature:
    Paul
    George [Signature on original kept by Legal]
    






 




    Summary
    of Policy



 



    This policy sets forth the eligibility requirements and amount
    of Severance Pay available to Eligible Officers.
    Defined terms are italicized. Please see Appendix A for
    definitions.



 




    I.  Under
    what circumstances is Severance Pay provided?



 



    Freddie Mac provides Severance Pay to a Severance
    Eligible Officer pursuant to the terms of this Policy. In
    addition, in the event an employee becomes a Severance
    Eligible Officer as a result of a Reduction in Force,
    Freddie Mac also provides Notice Pay, even if the
    Severance Eligible Officer does not sign an Agreement
    and Release of Claims.



 



    A Severance Eligible Officer’s employment is
    terminated as of the Separation Date. Such former
    officer’s eligibility to receive any benefit from or to
    continue participation in other plans maintained by the
    corporation is governed by the terms and provisions of those
    plans.



 




    II.  What
    procedures are followed to determine severance
    eligibility?



 



    Business-area management will submit to the Human Resources
    Division for review any proposed termination of employment
    (including any proposed voluntary separation that could result
    in Severance Pay) or proposed offer of Comparable
    Employment prior to discussing the same with the impacted
    employee. The Employee Relations Department of the Human
    Resources Division determines whether the employee is a
    Severance Eligible Officer, and interprets and applies
    this policy.



 



    Employee Relations, after consulting with business-area
    management and the Legal Division, also determines whether a job
    position to be offered to an Eligible Officer is
    Comparable Employment. Eligible Officers will be
    evaluated for Comparable Employment, if at all, based on
    criteria including (but not limited to) their historical
    performance ratings and management’s assessment of relative
    skills.



 



    After Employee Relations determines that the employee is a
    Severance Eligible Officer, business-area management
    provides Notice to the Severance Eligible Officer.
    Business-area management will give Notice in advance of
    the Separation Date, if at all, to the extent that
    advance notification is consistent with business circumstances
    or required by law.













 





	 	 	 	 	 
	
    
	
 
	
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    Business-area management, after consulting with Employee
    Relations, also establishes the Separation Date of a
    Severance Eligible Officer. Business-area management may
    require an Eligible Officer to provide services to
    Freddie Mac up to and including the Separation Date as a
    condition of being a Severance Eligible Officer.



 




    III.  What
    is required for a Severance Eligible Officer to receive
    Severance Pay?



 



    As a condition of receiving Severance Pay, a Severance
    Eligible Officer must sign an agreement and release of
    claims. Freddie Mac has exclusive discretion to determine what
    terms will be included within the agreement and release of
    claims. Among other things, the agreement and release of claims
    may contain provisions related to the following:



 



    ü Full
    release of claims






    ü Non-participation
    in claims against Freddie Mac






    ü Notice
    of receipt of subpoenas






    ü Treatment
    of confidential information






    ü Non-competition






    ü Non-solicitation
    of Freddie Mac employees






    ü Notice
    of future employment






    ü Return
    of Freddie Mac property






    ü Non-disparagement






    ü Obligation
    to reasonably cooperate






    ü Damages
    in the event of breach






    ü Preclusion
    and/or
    restriction from future Freddie Mac employment



 



    If a Severance Eligible Officer does not receive
    two-weeks of advance Notice of
    his/her
    Separation Date from Freddie Mac, and does not execute an
    agreement and release of claims proffered by the corporation,
    then the officer will receive two weeks’ pay following
    his/her
    Separation Date in lieu of advance Notice, and
    will receive no Severance Pay.



 




    IV.  What
    is the Severance Period of a Severance Eligible
    Officer?



 



    The suggested Severance Period of a Severance Eligible
    Officer is stated in Table A. If the Severance Eligible
    Officer is entitled to receive Notice Pay, then
    his/her
    Severance Period shall be the Severance Period
    specified in the applicable Table, minus the number of days
    of Notice Pay he/she is entitled to receive. In no event
    will a Severance Eligible Officer receive less than four
    weeks of Severance Pay in addition to Notice Pay.
    Freddie Mac has discretion to vary the length of the
    Severance Period and accordingly the amount of
    Severance Pay an officer receives.



 



    If the officer has executed an written agreement with the
    company prior to receiving Notice that specifies a
    Severance Period different from what is provided below,
    then the length of the Severance Period is as specified
    in that agreement, and will be in addition to the Notice
    Pay.


 


 



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    TABLE
    A

    Severance Period for Eligible Officers



 


	 	 	 	 
	
    Competed Service
	
 
	
 
	
    Severance Period

	

    < 1 year


	
 
	
 
	
    2 months

	

    < 2 years


	
 
	
 
	
    3 months

	

    < 3 years


	
 
	
 
	
    4 months

	

    < 4 years


	
 
	
 
	
    5 months

	

    < 5 years


	
 
	
 
	
    6 months

	

    < 6 years


	
 
	
 
	
    7 months

	

    < 7 years


	
 
	
 
	
    8 months

	

    < 8 years


	
 
	
 
	
    9 months

	

    < 9 years


	
 
	
 
	
    10 months

	

    < 10 years


	
 
	
 
	
    11 months

	

    > 10 years


	
 
	
 
	
    12 months

	
 
	
 
	
 
	
 









 




    V.  How
    does a Severance Eligible Officer receive his/her Severance
    Pay?



 



    A Severance Eligible Officer has the option of receiving
    his/her
    Severance Pay in periodic payments coinciding with
    Freddie Mac’s standard payroll procedures. Alternatively,
    the Severance Eligible Officer may receive
    his/her
    Severance Pay in a Lump Sum. If the Severance
    Eligible Officer elects periodic payments,
    he/she may
    be eligible to continue
    his/her
    participation in certain benefits plans at a reduced cost, in
    accordance with the terms of those plans.



 



    If a former officer receiving Severance Pay dies before
    receiving
    his/her
    entire Severance Pay, then Freddie Mac will pay the
    balance to the former employee’s beneficiaries entitled by
    will or applicable law to receive such benefit.



 




    VI.  When
    does a Severance Eligible Officer have to elect Lump Sum or
    Periodic Payments?



 



    A Severance Eligible Officer must elect whether to
    receive
    his/her
    Severance Pay in a Lump Sum or in periodic
    payments on or before the date on which
    he/she signs
    the required agreement and release of claims. Failure to make an
    election by this time will result in the Severance Eligible
    Officer receiving
    his/her
    Severance Pay in a Lump Sum.



 




    VII.  Restriction
    On Specified Employees.



 



    If a Severance Eligible Officer is a Specified
    Employee, then
    he/she will
    not begin receiving
    his/her
    Severance Pay until six (6) months following
    his/her
    Separation Date, consistent with Prop. Treas.
    Reg. 1.409A-3(g)(2),
    or any successor thereto. If the Severance Eligible Officer
    elected to receive
    his/her
    Severance Pay in periodic payments within the required
    election period, then
    he/she shall
    receive six months of Severance Pay in a Lump Sum
    upon the expiration of the six-month wait period, and then
    will receive the balance of
    his/her
    Severance Pay in periodic payments according to the
    company’s standard payroll procedures.



 




    VIII.  What
    happens to Severance Pay upon re-employment by Freddie
    Mac?



 



    If a former officer receiving Severance Pay is
    re-employed by Freddie Mac before the end of the Severance
    Period, the former officer will forfeit any remaining unpaid
    Severance Pay. If the former officer received
    his/her
    Severance Pay as a


 


 



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    Lump Sum, and becomes re-employed by Freddie Mac before
    the end of the Severance Period, Freddie Mac reserves the
    right to require that some or all of the amount be repaid as a
    condition of re-employment.



 



    IX.  Where can officers find additional information
    about Freddie Mac’s severance benefits?



 



    Officers may find additional information about Freddie
    Mac’s severance benefits in Freddie Mac’s Severance
    Summary Plan Description.



 




    X.  Reservation
    of Rights



 



    Freddie Mac reserves the right to amend or terminate this Policy
    or any of its provisions at any time for any reason in its sole
    discretion without giving rise to legal liability. Nothing in
    this Policy is intended nor shall be interpreted to create a
    contract of employment or alter the at-will employment
    relationship that otherwise may exist between Freddie Mac and
    such employee, or otherwise limit the discretion of either
    Freddie Mac or such employee to terminate the employment
    relationship at any time for any reason.



 




    Effective
    Date:
    March 1,
    2008
    



 




    o New




    x Replaces
    Policy 3-254.1
    dated January 15, 2007


 


 



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    Appendix A

    Definitions



 


			
	
    Comparable Employment 		
    Comparable Employment will be assessed on a
    case-by-case
    basis. Exact criteria the company will use include each of the
    following, all of which must be met for the position to be
    deemed comparable.
	 
	
		

    • The content of the job to which the employee may be
    assigned. To be comparable, the new position must require
    substantially the same skill set and technical knowledge.


	 
	
		

    • The commuting distance associated with the new
    position. To be comparable, the new position must not increase
    the commuting distance for the employee by more than
    50 miles, or increase the commuting distance for the
    employee such that the total commuting distance exceeds
    90 miles.


	 
	
		

    • To be comparable, the employee’s base salary
    must not decrease by more than 10%.


	 
	
    Eligible Officer 		
    An employee who is appointed by Freddie Mac as an officer of the
    corporation.


 


 



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    Gross Misconduct 		
    The occurrence or existence of any of the following:
	 
	
		

    ü Recurrent
    or flagrant insubordination related to core job duties and
    responsibilities;


	 
	
		

    ü Stealing
    property belonging to Freddie Mac, another employee, or other
    theft in connection with employment;


	 
	
		

    ü Committing
    fraud, including computer fraud;


	 
	
		

    ü Willfully
    destroying property;


	 
	
		

    ü Inflicting
    bodily harm on another employee, threatening another employee
    with a weapon, or conviction (including any plea of nolo
    contendere) of a crime;


	 
	
		

    ü Committing
    harassment;


	 
	
		

    ü Engaging
    in discriminatory behavior;


	 
	
		

    ü Recurring
    or habitual tardiness or absenteeism which has resulted in a
    written reprimand;


	 
	
		

    ü Intentionally
    disclosing or intentionally misusing Confidential Information
    (as that term is defined in the Freddie Mac policy, Code of
    Conduct, or applicable restrictive covenant and/or
    confidentiality agreement between the employee and Freddie Mac);


	 
	
		

    ü Negligently
    disclosing or negligently misusing Confidential Information (as
    that term is defined in the Freddie Mac policy, Code of Conduct,
    or applicable restrictive covenant and/or confidentiality
    agreement between the employee and Freddie Mac) resulting in a
    significant adverse impact on Freddie Mac or on the business of
    Freddie Mac; or


	 
	
		

    ü A
    material breach of any provision of any written policy of
    Freddie Mac required by law or established to maintain
    compliance with applicable legal or regulatory requirements.


	 
	
    Loss of Confidence 		
    Determination by senior executive management in its sole
    discretion that it no longer maintains a high level of
    confidence in an Eligible Officer’s decisions,
    judgment and/or conduct.
	 
	
    Lump Sum Payment 		
    Upon a Severance Eligible Officer’s election, or if
    the Severance Eligible Officer fails to make an election,
    Freddie Mac will pay the total Severance Pay in a single
    lump sum payment. The corporation will not make such payment
    until after: (1) the Severance Eligible Officer has
    executed an agreement and release of claims acceptable to
    Freddie Mac, (2) any applicable revocation period noted in
    the agreement and release of claims has expired without the
    Severance Eligible Officer revoking the agreement and
    release of claims, and (3) (applicable only to Specified
    Employees) six months has elapsed since the Separation
    Date.
	 
	
    Notice 		
    Oral or written communication from business-area management to a
    Severance Eligible Officer about the termination of the
    officer’s employment, Separation Date, and
    expectations concerning his/her continued provision of services
    to Freddie Mac during the period between the Notice and the
    Separation Date.


 


 



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    Notice Pay 		
    The dollar amount of pay based on the number of days of
    continued pay required by applicable federal and/or state law
    upon triggering events, such as group layoffs that occur within
    a legally defined period of time. Laws that would trigger
    Notice Pay include, but are not limited to, the federal
    Worker Adjustment and Retraining Notification (“WARN”)
    Act.
	 
	
    Position Elimination 		
    Loss of job due to company reorganization or job abolishment.
	 
	
    Reduction in Force 		
    An elimination of a certain minimum number of jobs that occurs
    within a defined time-period and triggers a requirement to pay
    Notice Pay. Laws that would require Notice Pay
    include (but are not limited to) the federal WARN Act.
	 
	
    Separation Date 		
    The date on which a Severance Eligible Officer’s
    employment with Freddie Mac terminates.
	 
	
    Severance Eligible Officer 		
    An Eligible Officer whose position is eliminated due to a
    Reduction in Force, job abolishment, or Loss of
    Confidence.
	 
	
		
    An Eligible Officer is not a Severance Eligible
    Officer if such employee:
	 
	
		

    ü at
    the time of Notice is classified as a temporary employee
    pursuant to
    Policy 3-221,
    Worker Classifications (as may be amended, replaced or
    redesignated from time to time);


	 
	
		

    ü is
    terminated for engaging in Gross Misconduct;


	 
	
		

    ü is
    regularly scheduled to work fewer than twenty (20) hours
    per week as of his/her receipt of Notice;


	 
	
		

    ü is
    on “Leave of Absence” status as defined in
    Policy 3-236,
    Other Excused Absences (as may be amended, replaced or
    redesignated from time to time), for thirty (30) or more
    calendar days as of his/her receipt of Notice unless
    otherwise provided by law;


	 
	
		

    ü fails
    to provide services to Freddie Mac in accordance with the
    Notice;


	 
	
		

    ü resigned
    employment as a result of a new assignment or reporting
    relationship;


	 
	
		

    ü received
    a written offer of employment from a Successor, which is an
    entity that acquires (through consolidation, reorganization,
    transfer, sublease, assignment or otherwise) all or
    substantially all of the business or assets of any business unit
    of Freddie Mac, or an entity that contracts with Freddie Mac to
    perform activities of the business unit in which the employee is
    assigned contemporaneous with the commencement of the
    contractual relationship; or


	 
	
		

    ü received
    a written offer of Comparable Employment from Freddie Mac.


	 
	
    Severance Pay 		
    The dollar amount that will be paid to a Severance Eligible
    Officer during the Severance Period, calculated using
    the Severance Eligible Officer’s base salary (which
    does not include items such as overtime, bonus and/or
    commissions) and/or actual hours of work as of the Separation
    Date.


 


 



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    Severance Period 		
    The period during which Severance Pay will be provided to
    a Severance Eligible Officer. The length of the
    Severance Period is based on the Severance Eligible
    Officer’s continuous service date or, if he/she
    previously received Severance Pay from Freddie Mac, then
    on his/her latest date of hire. The Severance Period
    begins the day following the Separation Date. Freddie
    Mac has discretion to vary the length of the Severance
    Period.
	 
	
		
    Sometimes, a Severance Eligible Officer may have received
    some, but not all, of his/her Severance Pay because
    he/she became re-employed by the company before the end of the
    Severance Period. In that event, Employee Relations will
    determine his/her continuous service date for purposes of this
    policy based on his/her rehire date and on the amount of
    Severance Pay he/she previously received.
	 
	
		
    If the Severance Eligible Officer has a written agreement
    with Freddie Mac that provides for a Severance Period
    that is different than the Severance Period specified
    in Table A, then the Severance Period shall be as
    specified in the written agreement.
	 
	
    Specified Employee 		
    A Severance Eligible Officer who is identified by Freddie
    Mac in its sole discretion as of the Separation Date as a
    “specified employee” as defined in Prop. Treas.
    Reg. 1.409A-1(i),
    or any successor thereto, and whose Severance Pay is
    determined by Freddie Mac to be subject to section 409A of
    the Internal Revenue Code.


 


 



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