Document:

exv4w1

    Exhibit 4.1
    

 

    FREDDIE
    MAC

 

 

    EIGHTH
    AMENDED AND RESTATED CERTIFICATE OF DESIGNATION,

    POWERS, PREFERENCES, RIGHTS, PRIVILEGES, QUALIFICATIONS,

    LIMITATIONS, RESTRICTIONS, TERMS AND CONDITIONS

    of

    VOTING COMMON STOCK

    (No Par Value Per Share)

 

    I, ROBERT E. BOSTROM, Corporate Secretary of the Federal
    Home Loan Mortgage Corporation, a government-sponsored
    enterprise of the United States of America (“Freddie
    Mac”), do hereby certify, pursuant to resolutions adopted
    on September 7, 2008 by the Federal Housing Finance Agency
    in its capacity as the conservator of Freddie Mac (the
    “Conservator”) and the authority delegated to the
    authorized officers thereunder (which resolutions are in full
    force and effect), that:

 

    — Pursuant to Section 304(a) of the Federal Home
    Loan Mortgage Corporation Act, as amended
    (12 U.S.C. §1453(a)) (the “Freddie Mac
    Act”), the voting common stock of Freddie Mac (the
    “Common Stock”) shall be issued to such holders and in
    the manner and amount, and subject to any limitations on
    concentration of ownership, as Freddie Mac prescribes; and

 

    — The Common Stock has the following designation,
    powers, rights, privileges, qualifications, limitations,
    restrictions, terms and conditions:

 

    1.
    Designation, Par Value and Number of Shares.

 

    The Common Stock of Freddie Mac shall be designated “Common
    Stock,” shall have no par value per share, and shall
    consist of 4,000,000,000 shares that have been issued or
    authorized for issuance (without limitation upon the authority
    of the Board of Directors to authorize the issuance of
    additional shares from time to time).

 

    2.
    Dividends.

 

    (a) The holders of outstanding shares of Common Stock shall
    be entitled to receive, ratably, dividends (in cash, stock or
    other property), when, as and if declared by the Board of
    Directors out of assets legally available therefor. The amount
    of dividends, if any, to be paid to holders of the outstanding
    Common Stock from time to time and the dates of payment shall be
    fixed by the Board of Directors of Freddie Mac (the “Board
    of Directors”). Each such dividend shall be paid to the
    holders of record of outstanding shares of the Common Stock as
    they appear in the books and records of Freddie Mac on such
    record date, not to be earlier than 45 days nor later than
    10 days preceding the applicable dividend payment date, as
    shall be fixed in advance by the Board of Directors.

 

    (b) Holders of shares of Common Stock shall not be entitled
    to any dividends, in cash, stock or other property, other than
    as herein provided and shall not be entitled to interest, or any
    sum in lieu of interest, on or in respect of any dividend
    payment.

 

    3. Voting
    Rights.

 

    (a) The holders of the outstanding shares of Common Stock
    shall have the right to vote (i) for the election of
    directors of Freddie Mac to the extent prescribed by applicable
    federal law, (ii) with respect to the amendment,
    alteration, supplementation or repeal of the provisions of this
    Certificate to the extent provided in Section 10(h) hereof,
    and (iii) with respect to such other matters, if any, as
    may be prescribed by the Board of Directors, in its sole
    discretion, or by applicable federal law; provided, however,
    that no vote shall be cast or counted in respect of any shares
    of Common Stock which, pursuant to procedures implemented in
    accordance with Section 7(b) hereof, may not be voted, nor
    shall such shares be considered outstanding for the purposes of
    calculating the requisite number or percentage of shares whose
    vote is required as to any matter.

 

    (b) Holders of the outstanding shares of Common Stock
    entitled to vote shall be entitled to one vote per share on all
    matters presented to them for their vote. Such vote shall be
    cast in person or by proxy at a meeting of such holders or, if
    so determined by the Board of Directors, by written consent of
    the holders of the requisite number of

    

    1

 

    shares of Common Stock. 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
    Common 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 vote of holders of Common Stock at any such meeting or
    otherwise, as to the conduct of such vote, as to quorum
    requirements therefor, as to the requisite number or percentage
    of affirmative votes required for the approval of any matter and
    as to all related questions. Such rules and procedures shall
    conform to the requirements of any national securities exchange
    on which the Common Stock may be listed.

 

    4. No
    Redemption.

 

    Freddie Mac shall not, and shall not have the right to, redeem
    any shares of Common Stock whether for cash, stock or other
    property.

 

    5. No
    Conversion Rights.

 

    The holders of shares of Common Stock shall not have any right
    to convert such shares into or exchange such shares for any
    other class or series of stock or obligation of Freddie Mac.

 

    6. No
    Preemptive Rights.

 

    No holder of Common Stock shall as such holder have any
    preemptive right to purchase or subscribe for any other shares,
    rights, options or other securities of any class of Freddie Mac
    which at any time may be sold or offered for sale by Freddie Mac.

 

    7.
    Ownership Reports.

 

    (a) Except as otherwise provided herein, any beneficial
    owner (as such term is defined in Securities and Exchange
    Commission (“SEC”)
    Rule 13d-3
    under the Securities Exchange Act of 1934 (the “Exchange
    Act”)) of the outstanding Common Stock shall furnish in
    writing to Freddie Mac and to each exchange where the Common
    Stock is listed such statements of beneficial ownership of the
    Common Stock, and amendments thereto, on such forms, in such
    time periods and in such manner as would be required by Exchange
    Act Sections 13(d) and 13(g) and by SEC regulations
    thereunder if the Common Stock were an equity security of a
    class registered under Exchange Act Section 12. Statements
    of beneficial ownership furnished to Freddie Mac under this
    Section 7 shall be publicly available and may be furnished
    to any person upon request and payment of any costs therefor,
    and Freddie Mac shall assume no liability for the contents of
    such documents. All references to the Exchange Act and any rules
    and regulations promulgated thereunder shall mean such statute,
    or such rules and regulations, as amended and in effect from
    time to time, including any successor statute, rules or
    regulations.

 

    (b) The CEO or his designee shall be empowered to take such
    steps and implement such procedures as he deems to be necessary
    or appropriate to ensure compliance with the reporting
    requirements set forth in this Section 7, including the
    refusal to permit the voting of any excess shares of Common
    Stock beneficially owned by any person failing to comply with
    such requirements. For purposes of this Section 7, excess
    shares shall include all shares of Common Stock beneficially
    owned by a person other than that number of shares the
    beneficial ownership of which would not give rise to a reporting
    obligation if such number constituted all of the shares
    beneficially owned by such person.

 

    (c) Any beneficial owner of shares of Common Stock believed
    by Freddie Mac to be in violation of the reporting requirements
    imposed by this Section 7 shall be required to respond to
    inquiries by the CEO or his designee made for the purpose of
    determining the existence, nature or extent of any such
    violation. Such inquiry shall be made in writing sent by first
    class mail, postage prepaid, shall set forth the reporting
    requirements referred to in this Section 7 and shall
    require such beneficial owner to provide Freddie Mac with such
    information concerning such beneficial ownership as may be
    specified in such inquiry. If such inquiry shall not have been
    responded to in a manner satisfactory to Freddie Mac within five
    business days after the date on which it was mailed, the shares
    to which the inquiry pertains shall be considered for all
    purposes to be beneficially owned in violation of the reporting
    requirements imposed by this Section 7, and the CEO or his
    designee shall be authorized to invoke the measures authorized
    by paragraph (b) of this Section 7, including the
    refusal to permit the voting of such shares.

    

    2

 

    (d) Any resolution or determination of, or decision or
    exercise of any discretion or power by, the Board of Directors
    or the officers, employees and agents of Freddie Mac hereunder
    shall be conclusive and binding on any beneficial owner of
    Common Stock affected and all persons concerned and shall not be
    open to challenge, whether as to its validity or otherwise, on
    any grounds whatsoever, and the Board of Directors, Freddie Mac
    and its officers, employees and agents shall not have any
    liability whatsoever in respect thereof.

 

    (e) Each certificate representing a share or shares of
    Common Stock issued after December 10, 1990 shall bear a
    conspicuous legend to the effect that ownership of the Common
    Stock is subject to the reporting requirements of this
    Section 7.

 

    (f) The Board of Directors shall have the right at any time
    to remove, relax or grant exceptions to the reporting
    requirements imposed under this Section 7.

 

    8.
    Liquidation Rights.

 

    (a) Upon the dissolution, liquidation or winding up of
    Freddie Mac, after payment of or provision for the liabilities
    of Freddie Mac and the expenses of such dissolution, liquidation
    or winding up, and after any payment or distribution shall have
    been made on any other class or series of stock of Freddie Mac
    ranking prior to the Common Stock upon liquidation, the holders
    of the outstanding shares of the Common Stock shall be entitled
    to receive out of the assets of Freddie Mac available for
    distribution to stockholders, before any payment or distribution
    shall be made on any other class or series of stock of Freddie
    Mac ranking junior to the Common Stock upon liquidation, the
    amount of $0.21 per share, plus a sum equal to all dividends
    declared but unpaid on such shares to the date of final
    distribution. The holders of the outstanding shares of any class
    or series of stock of Freddie Mac ranking prior to, on a parity
    with or junior to the Common Stock upon liquidation shall also
    receive out of such assets payment of any corresponding
    preferential amount to which the holders of such stock may, by
    the terms thereof, be entitled. Thereafter, subject to the
    foregoing and to the provisions of paragraph (b) of this
    Section 8, the balance of any assets of Freddie Mac
    available for distribution to stockholders upon such
    dissolution, liquidation or winding up shall be distributed to
    the holders of outstanding Common Stock in the aggregate.

 

    (b) Notwithstanding the foregoing, upon the dissolution,
    liquidation or winding up of Freddie Mac, the holders of shares
    of the Common Stock then outstanding shall not be entitled to be
    paid any amounts to which such holders are entitled pursuant to
    paragraph (a) of this Section 8 unless and until the
    holders of any classes or series of stock of Freddie Mac ranking
    prior upon liquidation to the Common Stock have been paid all
    amounts to which such classes or series of stock are entitled
    pursuant to their respective terms.

 

    (c) Neither the sale of all or substantially all the
    property or business of Freddie Mac, nor the merger,
    consolidation or combination of Freddie Mac into or with any
    other corporation or entity, shall be deemed to be a
    dissolution, liquidation or winding up for the purpose of this
    Section 8.

 

    9.
    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 Freddie Mac, 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 prior to or on a parity with or junior to the
    Common Stock as to dividends or upon liquidation or otherwise.

 

    10.
    Miscellaneous.

 

    (a) Any stock of any class or series of Freddie Mac shall
    be deemed to rank:

 

    (i) prior to the shares of the Common Stock, either as to
    dividends or upon liquidation, if the holder of such class or
    series shall be entitled to the receipt of dividends or of
    amounts distributable upon dissolution, liquidation or winding
    up of Freddie Mac, as the case may be, in preference or priority
    to the holders of shares of the Common Stock;

 

    (ii) on a parity with shares of the Common Stock, either as
    to dividends or upon liquidation, whether or not the dividend
    rates or amounts, dividend payment dates or redemption or
    liquidation prices per share, if any,

    

    3

 

    be different from those of the Common Stock, if the holders of
    such class or series shall be entitled to the receipt of
    dividends or of amounts distributable upon dissolution,
    liquidation or winding up of Freddie Mac, as the case may be, in
    proportion to their respective dividend rates or amounts or
    liquidation prices, without preference or priority, one over the
    other, as between the holders of such class or series and the
    holders of shares of the Common Stock; and

 

    (iii) junior to shares of the Common Stock, either as to
    dividends or upon liquidation, if the holders of shares of the
    Common Stock shall be entitled to the receipt of dividends or of
    amounts distributable upon dissolution, liquidation or winding
    up of Freddie Mac, as the case may be, in preference or priority
    to the holders of shares of such class or series.

 

    (b) Freddie Mac and any agent of Freddie Mac may deem and
    treat the holder of a share or shares of Common Stock, as shown
    in Freddie Mac’s books and records, as the absolute owner
    of such share or shares of Common Stock for the purpose of
    receiving payment of dividends in respect of such share or
    shares of Common Stock and for all other purposes whatsoever,
    and neither Freddie Mac nor any agent of Freddie Mac 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 Freddie Mac on or
    with respect to any such share or shares of Common Stock.

 

    (c) The shares of the Common Stock, when duly issued, shall
    be fully paid and non-assessable. Any shares owned by Freddie
    Mac shall retain the status of issued shares, unless and until
    Freddie Mac shall retire and cancel the same, but such shares
    shall not be regarded as outstanding while so owned.

 

    (d) Except as otherwise provided in Freddie Mac’s
    Employee Stock Purchase Plan or any other executive compensation
    or employee benefit plan or any direct stock purchase plan
    currently in effect or hereafter adopted by Freddie Mac, the
    Common Stock shall be issued, and shall be transferable on the
    books of Freddie Mac, only in whole shares, it being intended
    that, except as provided in said Plan or plans, no fractional
    interests in shares of the Common Stock shall be created or
    recognized by Freddie Mac.

 

    (e) For the purposes of this Certificate, the term
    “Freddie Mac” means the Federal Home Loan Mortgage
    Corporation and any successor thereto by operation of law or by
    reason of a merger, consolidation or combination.

 

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

 

    (g) Any notice, demand or other communication which by any
    provision of this Certificate is required or permitted to be
    given or served to or upon Freddie Mac shall be given or served
    in writing addressed (unless and until another address shall be
    published by Freddie Mac) to the Federal Home Loan Mortgage
    Corporation, 8200 Jones Branch Drive, McLean, Virginia
    22102, Attn: Executive Vice President, General Counsel and
    Corporate Secretary. Such notice, demand or other communication
    to or upon Freddie Mac shall be deemed to have been sufficiently
    given or made only upon actual receipt of a writing by Freddie
    Mac. Any notice, demand or other communication which by any
    provision of this Certificate is required or permitted to be
    given or served by Freddie Mac hereunder may be given or served
    by being deposited first class, postage prepaid in a United
    States post office letter box addressed (i) to the holder
    as such holder’s name and address may appear at such time
    in the books and records of Freddie Mac or (ii) if to a
    person or entity other than a holder of record of Common Stock,
    to such person or entity at such address as appears to Freddie
    Mac to be appropriate at such time.

 

    (h) Freddie Mac, by or under the authority of the Board of
    Directors, may amend, alter, supplement or repeal any provision
    of this Certificate pursuant to the following terms and
    conditions:

 

    (i) Without the affirmative vote of the holders of the
    Common Stock, Freddie Mac may amend, alter, supplement or repeal
    any provision of this Certificate to cure any ambiguity, to
    correct or supplement any provision herein which may be
    defective or inconsistent with any other provision herein, or to
    make any other provisions with respect to matters or questions
    arising under this Certificate, provided that such action shall
    not materially and adversely affect the interests of the holders
    of the Common Stock.

    

    4

 

    (ii) The affirmative vote by the holders of shares
    representing at least 66 2/3% of all of the shares of the
    Common Stock at the time outstanding and entitled to vote,
    voting together as a class, shall be necessary for authorizing,
    effecting or validating the amendment, alteration,
    supplementation or repeal of any of the provisions of this
    Certificate if such amendment, alteration, supplementation or
    repeal would materially and adversely affect the powers,
    preferences, rights, privileges, qualifications, limitations,
    restrictions, terms or conditions of the Common Stock. The
    creation and issuance of any other class or series of stock of
    Freddie Mac, whether ranking prior to, on a parity with or
    junior to the Common Stock, or any split or reverse split of the
    Common Stock (including any attendant proportionate adjustment
    to the par value thereof), shall not be deemed to constitute
    such an amendment, alteration, supplementation or repeal.

 

    (i) RECEIPT AND ACCEPTANCE OF A SHARE OR SHARES OF
    COMMON 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 FREDDIE MAC AND THE HOLDER (AND ALL SUCH OTHERS).

 

    IN WITNESS WHEREOF, I have executed this Certificate as of this
    10th
    day of September, 2008.

 

 

    [Seal]

 

    /s/  Robert
    E. Bostrom

    Robert E. Bostrom, Corporate Secretary

    

    5exv4w2

    Exhibit 4.2
    

 

    EXECUTION
    VERSION
    

 

    FREDDIE
    MAC

 

    CERTIFICATE
    OF CREATION, DESIGNATION, POWERS,

    PREFERENCES, RIGHTS, PRIVILEGES, QUALIFICATIONS,

    LIMITATIONS, RESTRICTIONS, TERMS AND CONDITIONS

    OF

    VARIABLE LIQUIDATION PREFERENCE SENIOR PREFERRED STOCK

    (PAR VALUE $1.00 PER SHARE)

 

    The Federal Housing Finance Agency, as Conservator of the
    Federal Home Loan Mortgage Corporation, a government-sponsored
    enterprise of the United States of America (the
    “Company”), does hereby certify that, pursuant to
    authority vested in the Board of Directors of the Company by
    Section 306(f) of the Federal Home Loan Mortgage
    Corporation Act, and pursuant to the authority vested in the
    Conservator of the Company by Section 1367(b) of the
    Federal Housing Enterprises Financial Safety and Soundness Act
    of 1992 (12 U.S.C. §4617), as amended, the Conservator
    adopted Resolution FHLMC
    2008-24 on
    September 7, 2008, which resolution is now, and at all
    times since such date has been, in full force and effect, and
    that the Conservator approved the final terms of the issuance
    and sale of the preferred stock of the Company designated above.

 

    The Senior Preferred Stock 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 Company created hereby (the
    “Senior Preferred Stock”) shall be designated
    “Variable Liquidation Preference Senior Preferred
    Stock,” shall have a par value of $1.00 per share and shall
    consist of 1,000,000 shares. The Senior Preferred Stock
    shall rank prior to the common stock of the Company as provided
    in this Certificate and shall rank, as to both dividends and
    distributions upon liquidation, prior to (a) the
    Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock
    issued on December 4, 2007, (b) the 6.55%
    Non-Cumulative Preferred Stock issued on September 28,
    2007, (c) the 6.02% Non-Cumulative Preferred Stock issued
    on July 24, 2007, (d) the 5.66% Non-Cumulative
    Preferred Stock issued on April 16, 2007, (e) the
    5.57% Non-Cumulative Preferred Stock issued on January 16,
    2007, (f) the 5.9% Non-Cumulative Preferred Stock issued on
    October 16, 2006, (g) the 6.42% Non-Cumulative
    Preferred Stock issued on July 17, 2006, (h) the
    Variable Rate, Non-Cumulative Preferred Stock issued on
    July 17, 2006, (i) the 5.81% Non-Cumulative Preferred
    Stock issued on January 29, 2002, (j) the 5.7%
    Non-Cumulative Preferred Stock issued on October 30, 2001,
    (k) the 6% Non-Cumulative Preferred Stock issued on
    May 30, 2001, (l) the Variable Rate, Non-Cumulative
    Preferred Stock issued on May 30, 2001 and June 1,
    2001, (m) the 5.81% Non-Cumulative Preferred Stock issued
    on March 23, 2001, (n) the Variable Rate,
    Non-Cumulative Preferred Stock issued on March 23, 2001,
    (o) the Variable Rate, Non-Cumulative Preferred Stock
    issued on January 26, 2001, (p) the Variable Rate,
    Non-Cumulative Preferred Stock issued on November 5, 1999,
    (q) the 5.79% Non-Cumulative Preferred Stock issued on
    July 21, 1999, (r) the 5.1% Non-Cumulative Preferred
    Stock issued on March 19, 1999, (s) the 5.3%
    Non-Cumulative Preferred Stock issued on October 28, 1998,
    (t) the

 

    5.1% Non-Cumulative Preferred Stock issued on
    September 23, 1998, (u) the Variable Rate,
    Non-Cumulative Preferred Stock issued on September 23, 1998
    and September 29, 1998, (v) the 5% Non-Cumulative
    Preferred Stock issued on March 23, 1998, (w) the
    5.81% Non-Cumulative Preferred Stock issued on October 27,
    1997, (x) the Variable Rate, Non-Cumulative Preferred Stock
    issued on April 26, 1996, (y) any other capital stock
    of the Company outstanding on the date of the initial issuance
    of the Senior Preferred Stock, and (z) any capital stock of
    the Company that may be issued after the date of initial
    issuance of the Senior Preferred Stock.

 

		
	
    2.  
	
    Dividends

 

    (a) For each Dividend Period from the date of the initial
    issuance of the Senior Preferred Stock, holders of outstanding
    shares of Senior Preferred Stock shall be entitled to receive,
    ratably, when, as and if declared by the Board of Directors, in
    its sole discretion, out of funds legally available therefor,
    cumulative cash dividends at the annual rate per share equal to
    the then-current Dividend Rate on the then-current Liquidation
    Preference. Dividends on the Senior Preferred Stock shall accrue
    from but not including the date of the initial issuance of the
    Senior Preferred Stock and will be payable in arrears when, as
    and if declared by the Board of Directors quarterly on
    March 31, June 30, September 30 and December 31 of
    each year (each, a “Dividend Payment Date”),
    commencing on December 31, 2008. If a Dividend Payment Date
    is not a “Business Day,” the related dividend will be
    paid not later than 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. “Business
    Day” means a day other than (i) a Saturday or Sunday,
    (ii) a day on which New York City banks are closed, or
    (iii) a day on which the offices of the Company are closed.

 

    If declared, the initial dividend will be for the period from
    but not including the date of the initial issuance of the Senior
    Preferred Stock through and including December 31, 2008.
    Except for the initial Dividend Payment Date, the “Dividend
    Period” relating to a Dividend Payment Date will be the
    period from but not including the preceding Dividend Payment
    Date through and including the related Dividend Payment Date.
    The amount of dividends payable on the initial Dividend Payment
    Date or for any Dividend Period that is not a full calendar
    quarter shall be computed on the basis of
    30-day
    months, a
    360-day year
    and the actual number of days elapsed in any period of less than
    one month. For the avoidance of doubt, in the event that the
    Liquidation Preference changes in the middle of a Dividend
    Period, the amount of dividends payable on the Dividend Payment
    Date at the end of such Dividend Period shall take into account
    such change in Liquidation Preference and shall be computed at
    the Dividend Rate on each Liquidation Preference based on the
    portion of the Dividend Period that each Liquidation Preference
    was in effect.

 

    (b) To the extent not paid pursuant to Section 2(a)
    above, dividends on the Senior Preferred Stock shall accrue and
    shall be added to the Liquidation Preference pursuant to
    Section 8, whether or not there are funds legally available
    for the payment of such dividends and whether or not dividends
    are declared.

 

    (c) “Dividend Rate” means 10.0%; provided,
    however, that if at any time the Company shall have for any
    reason failed to pay dividends in cash in a timely manner as
    required by this Certificate, then immediately following such
    failure and for all Dividend Periods thereafter until

    

    2

 

    the Dividend Period following the date on which the Company
    shall have paid in cash full cumulative dividends (including any
    unpaid dividends added to the Liquidation Preference pursuant to
    Section 8), the “Dividend Rate” shall mean 12.0%.

 

    (d) Each such dividend shall be paid to the holders of
    record of outstanding shares of the Senior Preferred Stock as
    they appear in the books and records of the Company on such
    record date as shall be fixed in advance by the Board of
    Directors, not to be earlier than 45 days nor later than
    10 days preceding the applicable Dividend Payment Date. The
    Company may not, at any time, declare or pay dividends on, make
    distributions with respect to, or redeem, purchase or acquire,
    or make a liquidation payment with respect to, any common stock
    or other securities ranking junior to the Senior Preferred Stock
    unless (i) full cumulative dividends on the outstanding
    Senior Preferred Stock in respect of the then-current Dividend
    Period and all past Dividend Periods (including any unpaid
    dividends added to the Liquidation Preference pursuant to
    Section 8) have been declared and paid in cash (including
    through any pay down of Liquidation Preference pursuant to
    Section 3) and (ii) all amounts required to be
    paid pursuant to Section 4 (without giving effect to any
    prohibition on such payment under any applicable law) have been
    paid in cash.

 

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

 

    (f) If and whenever dividends, having been declared, shall
    not have been paid in full, as aforesaid, on shares of the
    Senior Preferred Stock, all such dividends that have been
    declared on shares of the Senior Preferred Stock shall be paid
    to the holders pro rata based on the aggregate Liquidation
    Preference of the shares of Senior Preferred Stock held by each
    holder, and any amounts due but not paid in cash shall be added
    to the Liquidation Preference pursuant to Section 8.

 

		
	
    3.  
	
    Optional
    Pay Down of Liquidation Preference

 

    (a) Following termination of the Commitment (as defined in
    the Preferred Stock Purchase Agreement referred to in
    Section 8 below), and subject to any limitations which may
    be imposed by law and the provisions below, the Company may pay
    down the Liquidation Preference of all outstanding shares of the
    Senior Preferred Stock pro rata, at any time, in whole or in
    part, out of funds legally available therefor, with such payment
    first being used to reduce any accrued and unpaid dividends
    previously added to the Liquidation Preference pursuant to
    Section 8 below and, to the extent all such accrued and
    unpaid dividends have been paid, next being used to reduce any
    Periodic Commitment Fees (as defined in the Preferred Stock
    Purchase Agreement referred to in Section 8 below)
    previously added to the Liquidation Preference pursuant to
    Section 8 below. Prior to termination of the Commitment,
    and subject to any limitations which may be imposed by law and
    the provisions below, the Company may pay down the Liquidation
    Preference of all outstanding shares of the Senior Preferred
    Stock pro rata, at any time, out of funds legally available
    therefor, but only to the extent of (i) accrued and unpaid
    dividends previously added to the Liquidation Preference
    pursuant to Section 8 below and not repaid by any prior pay
    down of Liquidation Preference and (ii) Periodic Commitment
    Fees previously added to the Liquidation

    

    3

 

    Preference pursuant to Section 8 below and not repaid by
    any prior pay down of Liquidation Preference. Any pay down of
    Liquidation Preference permitted by this Section 3 shall be
    paid by making a payment in cash to the holders of record of
    outstanding shares of the Senior Preferred Stock as they appear
    in the books and records of the Company on such record date as
    shall be fixed in advance by the Board of Directors, not to be
    earlier than 45 days nor later than 10 days preceding
    the date fixed for the payment.

 

    (b) In the event the Company shall pay down of the
    Liquidation Preference of the Senior Preferred Stock as
    aforesaid, notice of such pay down shall be given by the Company
    by first class mail, postage prepaid, mailed neither less than
    10 nor more than 45 days preceding the date fixed for the
    payment, to each holder of record of the shares of the Senior
    Preferred Stock, at such holder’s address as the same
    appears in the books and records of the Company. Each such
    notice shall state the amount by which the Liquidation
    Preference of each share shall be reduced and the pay down date.

 

    (c) If after termination of the Commitment the Company pays
    down the Liquidation Preference of each outstanding share of
    Senior Preferred Stock in full, such shares shall be deemed to
    have been redeemed as of the date of such payment, and the
    dividend that would otherwise be payable for the Dividend Period
    ending on the pay down date will be paid on such date. Following
    such deemed redemption, the shares of the Senior Preferred Stock
    shall no longer be deemed to be outstanding, and all rights of
    the holders thereof as holders of the Senior Preferred Stock
    shall cease, with respect to shares so redeemed, other than the
    right to receive the pay down amount (which shall include the
    final dividend for such shares). Any shares of the Senior
    Preferred Stock which shall have been so redeemed, after such
    redemption, shall no longer have the status of authorized,
    issued or outstanding shares.

 

		
	
    4.  
	
    Mandatory
    Pay Down of Liquidation Preference Upon Issuance of Capital
    Stock

 

    (a) If the Company shall issue any shares of capital stock
    (including without limitation common stock or any series of
    preferred stock) in exchange for cash at any time while the
    Senior Preferred Stock is outstanding, then the Company shall,
    within 10 Business Days, use the proceeds of such issuance net
    of the direct costs relating to the issuance of such securities
    (including, without limitation, legal, accounting and investment
    banking fees) to pay down the Liquidation Preference of all
    outstanding shares of Senior Preferred Stock pro rata, out of
    funds legally available therefor, by making a payment in cash to
    the holders of record of outstanding shares of the Senior
    Preferred Stock as they appear in the books and records of the
    Company on such record date as shall be fixed in advance by the
    Board of Directors, not to be earlier than 45 days nor
    later than 10 days preceding the date fixed for the
    payment, with such payment first being used to reduce any
    accrued and unpaid dividends previously added to the Liquidation
    Preference pursuant to Section 8 below and, to the extent
    all such accrued and unpaid dividends have been paid, next being
    used to reduce any Periodic Commitment Fees (as defined in the
    Preferred Stock Purchase Agreement referred to in Section 8
    below) previously added to the Liquidation Preference pursuant
    to Section 8 below; provided that, prior to the termination
    of the Commitment (as defined in the Preferred Stock Purchase
    Agreement referred to in Section 8 below), the Liquidation
    Preference of each share of Senior Preferred Stock shall not be
    paid down below $1,000 per share.

    

    4

 

    (b) If the Company shall not have sufficient assets legally
    available for the pay down of the Liquidation Preference of the
    shares of Senior Preferred Stock required under
    Section 4(a), the Company shall pay down the Liquidation
    Preference per share to the extent permitted by law, and shall
    pay down any Liquidation Preference not so paid down because of
    the unavailability of legally available assets or other
    prohibition as soon as practicable to the extent it is
    thereafter able to make such pay down legally. The inability of
    the Company to make such payment for any reason shall not
    relieve the Company from its obligation to effect any required
    pay down of the Liquidation Preference when, as and if permitted
    by law.

 

    (c) If after the termination of the Commitment the Company
    pays down the Liquidation Preference of each outstanding share
    of Senior Preferred Stock in full, such shares shall be deemed
    to have been redeemed as of the date of such payment, and the
    dividend that would otherwise be payable for the Dividend Period
    ending on the pay down date will be paid on such date. Following
    such deemed redemption, the shares of the Senior Preferred Stock
    shall no longer be deemed to be outstanding, and all rights of
    the holders thereof as holders of the Senior Preferred Stock
    shall cease, with respect to shares so redeemed, other than the
    right to receive the pay down amount (which shall include the
    final dividend for such redeemed shares). Any shares of the
    Senior Preferred Stock which shall have been so redeemed, after
    such redemption, shall no longer have the status of authorized,
    issued or outstanding shares.

 

		
	
    5.  
	
    No Voting
    Rights

 

    Except as set forth in this Certificate or otherwise required by
    law, the shares of the Senior Preferred Stock shall not have any
    voting powers, either general or special.

 

		
	
    6.  
	
    No
    Conversion or Exchange Rights

 

    The holders of shares of the Senior Preferred Stock shall not
    have any right to convert such shares into or exchange such
    shares for any other class or series of stock or obligations of
    the Company.

 

		
	
    7.  
	
    No
    Preemptive Rights

 

    No holder of the Senior Preferred Stock shall as such holder
    have any preemptive right to purchase or subscribe for any other
    shares, rights, options or other securities of any class of the
    Company which at any time may be sold or offered for sale by the
    Company.

 

		
	
    8.  
	
    Liquidation
    Rights and Preference

 

    (a) Except as otherwise set forth herein, upon the
    voluntary or involuntary dissolution, liquidation or winding up
    of the Company, the holders of the outstanding shares of the
    Senior Preferred Stock shall be entitled to receive out of the
    assets of the Company available for distribution to
    stockholders, before any payment or distribution shall be made
    on the common stock or any other class or series of stock of the
    Company ranking junior to the Senior Preferred Stock upon
    liquidation, the amount per share equal to the Liquidation
    Preference plus an amount, determined in accordance with Section
    2(a) above, equal to the dividend otherwise payable for the
    then-current Dividend Period accrued through and including the
    date of payment in respect of such dissolution, liquidation or
    winding up; provided, however, that if the assets of the Company

    

    5

 

    available for distribution to stockholders shall be insufficient
    for the payment of the amount which the holders of the
    outstanding shares of the Senior Preferred Stock shall be
    entitled to receive upon such dissolution, liquidation or
    winding up of the Company as aforesaid, then, all of the assets
    of the Company available for distribution to stockholders shall
    be distributed to the holders of outstanding shares of the
    Senior Preferred Stock pro rata based on the aggregate
    Liquidation Preference of the shares of Senior Preferred Stock
    held by each holder.

 

    (b) “Liquidation Preference” shall initially mean
    $1,000 per share and shall be:

 

    (i) increased each time a Deficiency Amount (as defined in
    the Preferred Stock Purchase Agreement) is paid to the Company
    by an amount per share equal to the aggregate amount so paid to
    the Company divided by the number of shares of Senior Preferred
    Stock outstanding at the time of such payment;

 

    (ii) increased each time the Company does not pay the full
    Periodic Commitment Fee (as defined in the Preferred Stock
    Purchase Agreement) in cash by an amount per share equal to the
    amount of the Periodic Commitment Fee that is not paid in cash
    divided by the number of shares of Senior Preferred Stock
    outstanding at the time such payment is due;

 

    (iii) increased on the Dividend Payment Date if the Company
    fails to pay in full the dividend payable for the Dividend
    Period ending on such date by an amount per share equal to the
    aggregate amount of unpaid dividends divided by the number of
    shares of Senior Preferred Stock outstanding on such
    date; and

 

    (iv) decreased each time the Company pays down the
    Liquidation Preference pursuant to Section 3 or
    Section 4 of this Certificate by an amount per share equal
    to the aggregate amount of the pay down divided by the number of
    shares of Senior Preferred Stock outstanding at the time of such
    pay down.

 

    (c) “Preferred Stock Purchase Agreement” means
    the Preferred Stock Purchase Agreement dated September 7,
    2008, between the Company and the United States Department of
    the Treasury.

 

    (d) Neither the sale of all or substantially all of the
    property or business of the Company, nor the merger,
    consolidation or combination of the Company into or with any
    other corporation or entity, shall be deemed to be a
    dissolution, liquidation or winding up for the purpose of this
    Section 8.

 

		
	
    9.  
	
    Additional
    Classes or Series of Stock

 

    The Board of Directors shall have the right at anytime in the
    future to authorize, create and issue, by resolution or
    resolutions, one or more additional classes or series of stock
    of the Company, and to determine and fix the distinguishing
    characteristics and the relative rights, preferences, privileges
    and other terms of the shares thereof; provided that, any such
    class or series of stock may not rank prior to or on parity with
    the Senior Preferred Stock without the prior written consent of
    the holders of at least two-thirds of all the shares of Senior
    Preferred Stock at the time outstanding.

    

    6

 

		
	
    10.  
	
    Miscellaneous

 

    (a) The Company and any agent of the Company may deem and
    treat the holder of a share or shares of Senior Preferred Stock,
    as shown in the Company’s books and records, as the
    absolute owner of such share or shares of Senior Preferred Stock
    for the purpose of receiving payment of dividends in respect of
    such share or shares of Senior Preferred Stock and for all other
    purposes whatsoever, and neither the Company nor any agent of
    the Company 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
    Company on or with respect to any such share or shares of Senior
    Preferred Stock.

 

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

 

    (c) The Senior Preferred Stock may be issued, and shall be
    transferable on the books of the Company, only in whole shares.

 

    (d) For purposes of this Certificate, the term “the
    Company” means the Federal Home Loan Mortgage Corporation
    and any successor thereto by operation of law or by reason of a
    merger, consolidation, combination or similar transaction.

 

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

 

    (f) Any notice, demand or other communication which by any
    provision of this Certificate is required or permitted to be
    given or served to or upon the Company shall be given or served
    in writing addressed (unless and until another address shall be
    published by the Company) to Freddie Mac, 8200 Jones Branch
    Drive, McLean, Virginia 22102, Attn: Executive Vice President
    and General Counsel. Such notice, demand or other communication
    to or upon the Company shall be deemed to have been sufficiently
    given or made only upon actual receipt of a writing by the
    Company. Any notice, demand or other communication which by any
    provision of this Certificate is required or permitted to be
    given or served by the Company hereunder may be given or served
    by being deposited first class, postage prepaid, in the United
    States mail addressed (i) to the holder as such
    holder’s name and address may appear at such time in the
    books and records of the Company or (ii) if to a person or
    entity other than a holder of record of the Senior Preferred
    Stock, to such person or entity at such address as reasonably
    appears to the Company 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.

 

    (g) The Company, by or under the authority of the Board of
    Directors, may amend, alter, supplement or repeal any provision
    of this Certificate pursuant to the following terms and
    conditions:

    

    7

 

    (i) Without the consent of the holders of the Senior
    Preferred Stock, the Company may amend, alter, supplement or
    repeal any provision of this Certificate to cure any ambiguity,
    to correct or supplement any provision herein which may be
    defective or inconsistent with any other provision herein, or to
    make any other provisions with respect to matters or questions
    arising under this Certificate, provided that such action shall
    not adversely affect the interests of the holders of the Senior
    Preferred Stock.

 

    (ii) The consent of the holders of at least two-thirds of
    all of the shares of the Senior Preferred Stock at the time
    outstanding, given in person or by proxy, either in writing or
    by a vote at a meeting called for the purpose at which the
    holders of shares of the Senior Preferred Stock shall vote
    together as a class, shall be necessary for authorizing,
    effecting or validating the amendment, alteration,
    supplementation or repeal (whether by merger, consolidation or
    otherwise) of the provisions of this Certificate other than as
    set forth in subparagraph (i) of this paragraph (g).
    The creation and issuance of any other class or series of stock,
    or the issuance of additional shares of any existing class or
    series of stock, of the Company ranking junior to the Senior
    Preferred Stock shall not be deemed to constitute such an
    amendment, alteration, supplementation or repeal.

 

    (iii) Holders of the Senior Preferred Stock shall be
    entitled to one vote per share on matters on which their consent
    is required pursuant to subparagraph (ii) of this paragraph
    (g). 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 Senior
    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 Senior
    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 Senior Preferred Stock may be
    listed at such time.

 

    (h) RECEIPT AND ACCEPTANCE OF A SHARE OR SHARES OF THE
    SENIOR 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 COMPANY AND THE HOLDER (AND
    ALL SUCH OTHERS).

    

    8

 

    IN WITNESS WHEREOF, I have hereunto set my hand and the seal of
    the Company this
    7th
    day of September, 2008.

 

    [Seal]

 

    FEDERAL HOME LOAN MORTGAGE CORPORATION,

    by

 

    The Federal Housing Finance Agency, its Conservator

 

    /s/  James
    B. Lockhart III

    James B. Lockhart III

    Director

 

 

    Signature Page to Certificate of Designations of Senior
    Preferred Stock

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