exv10w29







 




    Exhibit
    10.29



 




    OFFICER
    SHORT-TERM INCENTIVE PROGRAM

    Parameters Document

    March 2008



 


			
	
    Objective 		
    The Officer Short-term Incentive Program is intended to align
    executive compensation with the performance of the corporation.
    The program provides cash awards to eligible officers based on a
    combination of corporate, division, and individual performance
    during the performance year. Bonus pool funding is based on the
    Compensation and Human Resources Committee’s determination
    of the Company’s performance against annual Corporate
    Scorecard objectives and other relevant unplanned
    accomplishments. The allocation of these funds to divisions is
    determined at the Chief Executive Officer’s discretion, and
    will take into account the division’s performance. The
    allocation of an award to individual officers will take into
    account performance against their objectives and available funds.
	 
	
    Performance Period 		
    The performance period runs from January 1 —
    December 31.
	 
	
    General Eligibility 		
    An officer is eligible to participate in the program if:
	 
	
		

    • As of the last business day of the performance
    period, s/he is classified by Freddie Mac (in its sole
    discretion) as an active, full-time or part-time officer, or an
    officer on short-term disability and/or approved leaves of
    absence. Individuals who are in terminated status (for whatever
    reason) as of the last business day of the performance period
    are not eligible to participate in the bonus program for that
    year unless their participation is authorized by the Chief
    Executive Officer (the “CEO”), the President and Chief
    Operating Officer (the “President”), or the Executive
    Vice President-Human Resources and Corporate Services.
    Individuals on terminated status include those on severance,
    retirement and long-term disability.


	 
	
		

    • On the bonus payment date (typically in February or
    March of the year following the performance period), s/he is
    classified by Freddie Mac (in its sole discretion) as an active,
    full-time or part-time officer, or an officer on short-term
    disability and/or approved leave of absence. Individuals who are
    in terminated status (other than as described in the proviso
    below) on the bonus payment date are not eligible to participate
    in the bonus program for that year. Individuals on terminated
    status include those on severance, retirement and long-term
    disability; provided, however, that an officer who
    retires (terminates and commences an immediate annuity under the
    FHLMC Employees’ Pension Plan) after the last business day
    of the performance period, but before the bonus payout date, is
    eligible to participate in the program; and, provided
    further, that an officer is eligible to participate in the
    program if his/her participation is authorized by the CEO, the
    President or the Executive Vice President-Human Resources and
    Corporate Services.















 





			
	
		

    • S/He is not eligible to participate in a separate
    compensation, incentive and/or bonus plan or individually
    negotiated arrangement that provides separate bonus treatment.


	 
	
		
    Individualized eligibility criteria may be negotiated with
    officers and is subject to appropriate approval.
	 
	
    Bonus Targets 		
    Each year, a bonus target is developed for and communicated to
    each eligible officer. The targets may be expressed as a percent
    of base salary or a fixed dollar amount. Bonus targets are
    subject to appropriate approvals.
	 
	
    Discretionary Nature of the Program 		
    Freddie Mac’s officer short-term incentive program is
    discretionary — a payout under the program is not
    guaranteed and is only payable if the appropriate authority
    decides to award the bonus. Key performance areas are defined in
    the Corporate Scorecard and represent corporate performance
    goals for the year. The CHRC approves the Corporate Scorecard
    applicable to the performance period.
	 
	
		
    The amount of funding for the program is determined by the CHRC
    based upon an evaluation of the Company’s performance
    against the Corporate Scorecard objectives and other items, as
    the CHRC deems appropriate.
	 
	
		
    The Corporate Scorecard Objectives are generally communicated to
    eligible officers generally in the first quarter of the
    Performance Year.
	 
	
    Bonus Pool Funding Calculation 		
    The formula used to calculate the bonus pool funding is
	 
	
		
    Corporate Performance (0 – 200 percent),
    multiplied by either (a) agreed upon aggregate funding
    level or (b) aggregate bonus targets of participants, plus
    guaranteed minimum bonus commitments
	 
	
		
    = Officer Short-term Incentive Program Funding













 





			
	
    Bonus Award Guidelines + 		

    • Each division receives a bonus pool to allocate to
    participants.


	 
	
		

    • Bonus targets are calculated based on either a fixed
    dollar amount or actual base salary earnings (not annual
    salaries). If calculated on actual base salary earnings, this
    calculation does not include items such as the prior year’s
    bonus, other incentive or cash awards, FlexDollars or vacation
    payouts. If calculated on a fixed dollar amount, this
    calculation will be prorated using base salary earnings.


	 
	
		

    • Bonuses are calculated based on the bonus target
    developed for the officer.


	 
	
		

    • An officer’s total bonus cannot exceed two
    times his/her target absent approval of the CHRC for Executive
    Officers or an Authorized Officers for non-Executive Officers.


	 
	
    Payout 		
    Other Officers: Generally, bonuses are recommended by the
    division heads, approved by an Authorized Officer and paid no
    later than March in the year following the performance year.
	 
	
		
    Executive Officers: Bonuses are recommended by the CEO, approved
    by the CHRC (the Audit Committee for the Senior Vice
    President — General Auditor), and paid no later than
    March in the year following the performance year
	 
	
		
    CEO/President: Bonuses are approved by the CHRC, with input from
    the other independent members of the Board, and paid no later
    than March in the year following the performance year. The CEO,
    the CHRC, or the Audit Committee, as appropriate, may change
    payout dates noted above.
	 
	
    General 		
    Bonus amounts paid pursuant to this arrangement are considered
    compensation for purposes of the 401(k) plan, the pension plan
    and the SERP.
	 
	
		
    Nothing in this program is intended to create a contract to
    employ any employee for any particular term or period of time or
    otherwise abrogate Freddie Mac’s right to terminate an
    employee at any time for any reason.
	 
	
		
    Freddie Mac reserves the right to terminate this program or
    modify its provisions at anytime for any reason at the
    corporation’s sole discretion.