Document:

exv10w72

 

    Exhibit
    10.72

 

	 	 	 	 	 
	
      
	
 
	
    Corporate Headquarters

    8250 Jones Branch Drive

    McLean, VA 22102
	
 
	
    Tel: (703) 918-5000

    www.FreddieMac.com

    Confidential

	
 
	
 
	
 
	
 
	
 

 

    March 11,
    2006
    

 

 

    Mr. Kirk Die

    3 Kirkcaldy Drive

    West Chester, PA 19382

 

    Dear Kirk:

 

    I am pleased to extend an offer to you for the position of
    Senior Vice President, General Auditor. All of the executives
    you met with during your interviews at Freddie Mac are excited
    about the prospect of you joining our team and I am confident
    that you would be a valuable addition. For these reasons, I
    would like to offer you the compensation outlined below.

 

 

	 	 	 	 	 
	
 
	
 
	
 
	
 
	
 

	

    Compensation
    Components1

	
 
	
 
	
 
	
 
	
 

	

    Total Target Cash Compensation

	
 
	
 
	
 
	
 

	

    Base Salary

	
 
	
    $
	
    350,000
	
 

	
 
	
 
	
 
	
 
	
 

	

    Target Short Term Incentive (STI) (70% of Base Salary);

	
 
	
    $
	
    245,000
	
 

	

    Maximum of 200% of Target

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	

    Total Target Cash Compensation

	
 
	
    $
	
    595,000
	
 

	
 
	
 
	
 
	
 
	
 

	

    Target Long-Term Incentive
    (LTI)2

	
 
	
 
	
 
	
 

	

    Target Annual LTI (70% of Base
    Salary)3

	
 
	
    $
	
    245,000
	
 

	

    Total Target Direct Compensation (Base Salary, STI, &
    LTI)

	
 
	
    $
	
    840,000
	
 

	
 
	
 
	
 
	
 
	
 

	

    Sign-On
    Component4,5

	
 
	
 
	
 
	
 

	

    Restricted Stock Units

	
 
	
    $
	
    450,000
	
 

	

    Cash

	
 
	
    $
	
    150,000
	
 

	
 
	
 
	
 
	
 
	
 

	

    Total Sign-On

	
 
	
    $
	
    600,000
	
 

	
 
	
 
	
 
	
 
	
 

 

    (1) This offer and the terms of your compensation are
    subject to the approval of the Audit Committee of the Board of
    Directors and on Freddie Mac’s satisfaction in its sole
    discretion that your employment will not create an undue risk of
    impairing the independence of the company’s outside
    auditor. In addition, this offer is conditioned on the
    following, as is normal in the heavily regulated environment in
    which we operate: satisfactory completion of a reference check,
    background check, and drug test; executing a “Restrictive
    Covenant and Confidentiality Agreement” (enclosed); and
    your ability to verify your eligibility to work in the United
    States within 3 days of your start date, in compliance with
    the requirements of the Immigration Reform and Control Act.

 

    As a Freddie Mac employee you will be subject to Corporate
    Policy 3-206, Investment Limitations Policy that, among other
    things, limits the investment activities of Freddie Mac
    employees. You should consult with Freddie Mac’s Chief
    Compliance Officer as soon as practical about any investments
    that you or a “covered household member,” as that term
    in defined in this policy, may have that may be prohibited by
    this policy. In addition, you are being employed as an “at
    will” employee consistent with Freddie Mac’s
    employment policy.

 

    Your employment, this letter, and the matters addressed in it
    will be governed by and construed in accordance with the laws of
    the Commonwealth of Virginia, without regard to its
    conflict-of-laws provisions.

 

    Mr. Kirk Die

    March 11, 2006

    Page 2 of 3

 

    The terms and conditions set forth in this letter supersede any
    previous communication you have had with Freddie Mac
    and/or its
    agents concerning the terms and conditions of your employment
    with Freddie Mac.

 

    (2) Freddie Mac’s annual Long-Term Incentive (LTI)
    awards will be delivered in a mix of 25% in stock options and
    75% in Restricted Stock Units (RSUs). The LTI awards will vest
    at a rate of 25% each year, over four years. The number of stock
    options and RSUs awarded is based on the
    Black-Scholes
    value and Economic Value, respectively. All aspects of the
    award, vesting, terms and conditions will be consistent with the
    annual LTI awards to all other Section 16 Insiders.

 

    Freddie Mac currently provides dividend equivalents on RSUs.
    Dividend equivalents provide the grantee the right to receive
    from the corporation a cash payment equivalent to the dividends
    declared and paid on issued and. outstanding shares of common
    stock. This cash payment is made as promptly as possible after
    the payment date for such dividend or distribution.

 

    (3) If your start date is prior to May 3, 2006, you
    will be eligible to receive your full target LTI of $245,000.
    The award will be granted at the same time as other
    Section 16 Insiders receive their LTI awards, which is
    anticipated to be no earlier than May 2006.

 

    (4) As an additional incentive to join Freddie Mac and in
    anticipation of the expenses you will incur in your move to
    Washington DC, we will provide an RSU sign-on award of $450,000
    and a cash sign-on award of $150,000.

 

    The RSU sign-on award will vest at a rate of 33% on the first
    anniversary of the grant (2007), 33% on the second anniversary
    of the grant (2008), and the remaining 34% on the third
    anniversary of the grant (2009). The number of RSUs awarded is
    based on the average of the high and low price (the fair market
    value) of a share of Freddie Mac common stock on the date
    established by the Audit Committee of the Board of Directors as
    the grant date.

 

    Sign-on cash awards are subject to repayment if, within the
    first year of employment, an employee terminates employment for
    any reason, Freddie Mac terminates employment for any violation
    of standard of conduct or behavior, or the Audit Committee
    determines that Senior Vice President, General Auditor’s
    performance is unacceptable.

 

    (5) Freddie Mac will also provide you with relocation
    assistance. Relocation assistance includes
    packing/transportation of household goods, new home finding and
    current home sale assistance, a onetime payment of $10,000 to
    cover miscellaneous expenses, new home closing cost assistance,
    and tax assistance.

 

    In light of the fact that you will need time to establish a
    permanent residence in the Washington, DC metro area, we will
    provide for up to 3 months temporary living at a
    residential apartment complex convenient to our McLean campus.

 

    Enclosed for your review are summary descriptions of Freddie
    Mac’s comprehensive and flexible benefits plans, which
    consistently rank among the top in the nation. This includes
    relocation, health and welfare, retirement and savings, retiree
    medical benefits, income protection (disability, group term
    life, etc.), paid time off, and work/life benefits. Our senior
    vice presidents are also eligible for severance in an amount
    equal to 12 months of base salary (provided for according
    to the corporate severance policy and “Restrictive Covenant
    and Confidentiality Agreement”). Should you have any
    questions regarding these benefits, please do not hesitate to
    contact Julie Peterson, Vice President Compensation and
    Benefits, at
    703-918-5789.

 

    To indicate your agreement to these terms, please return an
    executed copy of this letter as well as the enclosed
    “Restrictive Covenant and Confidentiality Agreement”
    to me. Additional copies of the agreements are enclosed for your
    records.

 

    Mr. Kirk Die

    March 11, 2006

    Page 2 of 3

 

    At your convenience, please give Julie or myself
    (703-918-8900)
    a call once you’ve had an opportunity to review this offer.

 

    Best Regards,
    

 

    /s/  Paul
    George

    Paul George

    Executive Vice President, Human Resources

 

	 	 	 	 	 
	

    Signed and Agreed to:

	
 
	
    /s/  Kirk
    Die

	
 
	
    3/17/06

	
 
	
 
	
    
	
 
	
    

	
 
	
 
	
 
	
 
	
    Date

	

    Enclosuresexv10w73

 

    Exhibit
    10.73

 

    SEPARATION
    AGREEMENT AND GENERAL RELEASE

 

	 	 	 
	
    To:
	
 
	
    Kirk Die

	
     
	
 
	
 

	
    Date Delivered

    to Employee:
	
 
	
    April 7, 2008, as revised April 8 and May 1, 2008.

 

    Freddie Mac is offering you valuable consideration in
    exchange for your agreement to be bound by the terms of this
    Agreement and Release (“Agreement”). Please be advised
    that, by signing this Agreement, you will be releasing Freddie
    Mac of all legal claims you have, regardless of whether you
    currently are aware of them. Therefore, Freddie Mac advises you
    to consult with an attorney before you sign this document.

 

		
	
    A.     
	
    Obligations
    and Restrictions Imposed Upon You By This
    Agreement

 

    By signing below, you agree to be bound legally to the following
    terms:

 

    1.     Full Release: In
    your individual and representative capacities, you irrevocably
    and unconditionally waive, release, and forever discharge the
    Federal Home Loan Mortgage Corporation (“Freddie
    Mac”), its predecessors, successors and assigns, and each
    of their respective directors, officers, employees, fiduciaries,
    administrators, trustees, shareholders, and agents
    (collectively, “the Released Parties”) from any
    claims, charges, demands, sums of money, actions, rights,
    promises, causes of action, obligations, and liabilities of any
    kind or nature, in law or equity, whether known or unknown,
    existing or contingent, apparent or concealed (collectively,
    “claims”) that you have ever had or currently have
    against the Released Parties. This release extends to all
    claims, whether asserted by you or asserted on your behalf by
    your heirs, executors, beneficiaries, administrators,
    successors, assigns or trustees. Claims that you release
    include, but are not limited to, all claims arising out of or in
    relation to your employment with Freddie Mac, whether arising
    under express or implied contract, tort, common law, or federal,
    state, or local laws, ordinances, or regulations. This release
    also extends to all claims on account or arising out of the
    negotiation or execution of this Agreement. A non-exhaustive
    list of the types of claims you release include all claims for
    fraud, defamation, wrongful termination, and whistle-blower
    claims, as well as claims for discrimination, harassment,
    attorney’s fees and costs, and retaliation arising under
    any federal, state, or local law, such as claims arising under
    Title VII of the Civil Rights Act of 1964, the Civil Rights
    Act of 1866, the Age Discrimination in Employment Act
    (“ADEA”), as amended by the Older Workers Benefit
    Protection Act of 1990, the Uniformed Services Employment and
    Re-employment Rights Act of 1994; the Immigration Reform Control
    Act, the Equal Pay Act of 1963, the Occupational Safety and
    Health Act, the Vocational Rehabilitation Act of 1973, the
    Vietnam Era Veterans’ Readjustment Assistance Act of 1974,
    the Americans with Disabilities Act, the Employee Retirement
    Income Security Act of 1974 (“ERISA”), the National
    Labor Relations Act, 1978 Uniform Guidelines on Employee
    Selection Procedures, Comprehensive Omnibus

 

    Budget Reconciliation Act of 1986; the Sarbanes-Oxley Act of
    2002, any amendments to the foregoing laws or regulations, all
    state laws and municipal ordinances, and the United States
    Constitution. Notwithstanding the foregoing, this Release docs
    not extend, nor purport to release, any claims that Freddie Mac
    may not lawfully request that you release.

 

    Nothing in this Paragraph A(l) or this Agreement shall
    adversely affect any rights you may have to seek
    and/or
    receive either advancement or indemnification pursuant to the
    terms and conditions set forth in Freddie Mac’s Bylaws,
    including those rights set forth in Article 8 thereof, or
    reimbursement under any applicable directors and officers
    liability insurance policy (“D&O”). You agree
    that Freddie Mac’s Bylaws, D&O policy and applicable
    law govern your right to any indemnification or reimbursement.

 

    2.     Non-Participation.  You
    acknowledge that in the absence of this Agreement, you have the
    right to encourage, counsel, assist or communicate with others
    in bringing claims against the Released Parties. By signing
    below, you agree to waive these rights with respect to private
    parties. Therefore, except as otherwise provided in this
    Agreement, you agree that you have not and will not encourage,
    counsel, assist or communicate with any attorneys, their
    clients, or any other persons (including current or former
    Freddie Mac employees) in bringing or prosecuting any claims,
    charges, or complaints against the Released Parties, unless
    pursuant to a valid subpoena or court order to produce documents
    or testify, or unless you have been requested by an agency of
    the United States government or state or local government
    (collectively “government agency”) to assist in a
    government agency investigation or proceeding.

 

    To the extent that you arc requested by any government agency to
    participate or assist in a government agency investigation or
    proceeding, or to the extent that any law may prohibit you from
    waiving your right to bring or participate in the investigation
    of a claim, you nevertheless waive any right you otherwise might
    have to seek or accept any damages or relief in any proceeding.
    Furthermore, to the extent that you file any claim against
    Freddie Mac, or any claim is filed on your behalf against
    Freddie Mac, you agree not to seek or accept any damages or
    other relief as a result of such claim.

 

    3.     Compliance with Subpoenas
    or Other Requests.  If you receive a court
    subpoena, deposition notice, request by a government agency, or
    request by any private party to disclose information concerning
    your employment or termination of employment with Freddie Mac,
    or concerning the terms of this Agreement, you agree that you
    will provide Freddie Mac with notice of such subpoena, notice,
    or request within not more than twenty-four (24) hours of
    your receipt. You may comply with this requirement by providing
    written notice, via Certified Mail, to the Vice-President and
    Deputy General Counsel, Litigation, of the Legal Division
    (“DGC”). If notice by Certified Mail will not reach
    the DGC before the date your compliance with the subpoena,
    deposition notice, or similar request is required, then you
    agree to provide a facsimile copy to the DGC before compliance
    is required.

 

    With respect to any private party, you agree that: (i) you
    will not voluntarily provide any testimony or information unless
    required by law or permitted by Freddie Mae; (ii) you

    

    2

 

    will permit Freddie Mac to be represented by an attorney of
    Freddie Mac’s choosing at any such testimony or with
    respect to any such information to be provided; and
    (iii) you will follow the instructions of the attorney
    designated by Freddie Mac with respect to what testimony or
    information is privileged by the attorney-client
    and/or work
    product privileges of Freddie Mac. The parties agree that
    Freddie Mac shall be responsible for the expense of any lawyer
    designated by Freddie Mac to represent Freddie Mac’s
    interests.

 

    4.     Confidential
    Information. During your employment with Freddie Mac,
    you may have worked with or otherwise gained knowledge about
    information that Freddie Mac deems trade secrets or otherwise
    confidential and proprietary information belonging to Freddie
    Mac. This information may include, but not be limited to:
    (a) the components, capabilities or attributes of Freddie
    Mac’s methods or systems; (b) tax and financial
    matters, including capital structure and tax and financial
    planning strategies; (c) shareholder and investor
    strategies, tactics or plans; (d) pricing or investment
    strategies; (c) past, current,
    and/or
    future business strategies, tactics or plans; (f) marketing
    or sales strategies, tactics or plans; (g) compensation and
    employee benefits strategies and practices, and other
    confidential personnel matters; (h) trading strategies,
    tactics and plans; (i) Freddie Mac’s development of
    and applications for patents, trademarks, and copyrights, to the
    extent such information is non-public; and (j) any other
    information of a proprietary nature. By signing below, you agree
    that to the extent you have knowledge about such information,
    you gained your knowledge through your employment with Freddie
    Mac, and agree to treat the information as strictly
    confidential. You agree that you have not and will not use any
    such information directly or indirectly for any purpose. You
    also agree that you have not and will not disclose it to anyone
    outside of Freddie Mac.

 

    You also acknowledge that, in light of your employment with
    Freddie Mac, you have been in possession of confidential
    information and documents that may be privileged under the
    attorney-client
    and/or work
    product privileges. You agree to maintain the confidences and
    privileges of Freddie Mac and acknowledge that any such
    confidences and privileges belong solely to Freddie Mac and can
    only be waived by Freddie Mac, not you.

 

    5.     Confidentiality of
    Agreement.  Subject to the terms of
    Paragraph D(1) below, you agree to keep the fact of this
    Agreement, the negotiation of its terms and all of such terms
    completely confidential except as otherwise permitted by the
    terms of this Agreement or applicable law. You may disclose the
    terms of this Agreement only to your attorney, accountant, tax
    or financial advisor, outplacement counselor hired by Freddie
    Mac, or members of your immediate family, provided that they
    agree to keep the terms confidential.

 

    6.     Freddie Mac
    Property.  You affirm that you have returned
    all property and documents belonging to Freddie Mac that are in
    your possession or within your control on such date that may be
    agreed to in writing by your manager and a representative of the
    Human Resources Division, which in the absence of such written
    agreement shall not be later than your Separation Date.

    

    3

 

    7.     Future Employment
    Restriction.  You agree that for twelve
    (12) month immediately following your Separation Date, you
    will not consider offers of employment from, seek or accept
    employment with, or otherwise directly or indirectly provide
    professional services (including consulting services) to Fannie
    Mae and/or
    any Federal Home Loan Bank (including the Office of Finance).

 

    8.     Non-Solicitation of
    Freddie Mac Managers.  During the twelve
    (12)-month period beginning with your last day of employment
    with Freddie Mac, you agree that you will not directly or
    indirectly recruit or solicit or assist another in recruiting or
    soliciting for employment purposes or for the provision of
    professional services (including consulting services) any
    Freddie Mac managerial employee (including manager, director, or
    officer-level
    employees) with whom you worked, or any employee whom you
    directly or indirectly supervised at Freddie Mac. This
    prohibition against solicitation of employment docs not apply if
    Freddie Mac has provided written notice to the employee being
    solicited that
    his/her
    employment with Freddie Mac will be terminated pursuant to a
    corporate reorganization or reduction in force.

 

    9.     Notice of Future
    Employment.  In order to allow Freddie Mac to
    monitor your compliance with the post-employment restrictions
    imposed by this Agreement, you agree to provide written notice
    to the Executive Vice-President of the Human Resources Division
    of the identity of each new employer with whom you accept
    employment together with your job title and brief description of
    job duties during the twelve
    (12)-month
    period beginning with your last day of employment with Freddie
    Mac.

 

    10.     Assistance To Freddie
    Mac.  You agree, in response to reasonable
    requests, to cooperate fully and assist Freddie Mac in any
    matter in which you have been involved during the course of your
    employment. Such assistance shall include providing information,
    preparing documents, submitting to depositions, deposition
    preparation, providing testimony and general cooperation to
    assist the company in explaining its position with respect to
    any matter in which you may have been involved. Freddie Mac
    agrees that such assistance shall be provided at times and in a
    manner so as not to interfere with or jeopardize your subsequent
    employment.

 

    In the event you incur reasonable expenses associated with
    providing such assistance, including attorneys fees for
    individual representation by an attorney of your choosing,
    Freddie Mac shall reimburse such reasonable expenses in
    accordance with company policy generally applicable to senior
    executive officers of the company, and for each full or partial
    hour of assistance provided Freddie Mac shall pay you a stipend
    equal to your hourly rate of pay as of the date of this
    Agreement, consistent with applicable law. You acknowledge that
    Freddie Mac has sole discretion to determine the reasonableness
    of any attorney’s fees you may incur in connection with
    your assisting Freddie Mac and Freddie Mac agrees that any such
    determination shall be consistent with any guidelines it has or
    may establish pursuant to its Bylaws’ indemnification
    process and with applicable law.

 

    11.     Non-Disparagement.
    You agree not to make, or cause or attempt to cause any other
    person to make any statement, whether written or oral, or convey
    any information

    

    4

 

    about Freddie Mac or any of its officers, employees or
    directors, past or present, that is disparaging. Nothing herein
    prevents you from using any non-Confidential information about
    the scope of your job duties to obtain other employment,
    participating in a proceeding relating to any violation of
    federal, state or local law relating to fraud against
    shareholders or any rule of the U.S. Securities and
    Exchange Commission or complying with a Court order.

 

    12.     Waiver of Participation
    In and Receipt of Benefits Pursuant to Freddie Mac’s
    Short-Term Disability Plans. Policies and
    Programs.  You agree not to file any claim for
    any benefit pursuant to Freddie Mac’s Short-Term Disability
    Plans or Programs and you further agree to forever waive and
    relinquish whatever right you may have had to receive any
    benefit.

 

    13.     Execution or a Second
    Agreement and Release.  In the event that you
    execute this Agreement prior to your Separation Date, you agree
    to execute on your Separation Date a Second Agreement and
    Release that is substantially similar in form and substance to
    this First Agreement and Release, set forth as Attachment A
    hereto. You understand and agree that the Second Agreement and
    Release will provide for no additional payments, benefits or
    consideration beyond any payments, benefits and consideration
    you receive pursuant to the terms of this First Agreement and
    Release and that such payments, benefits and consideration
    constitute adequate consideration for your execution of and
    adherence to the terms of the Second Agreement and Release. In
    the event that you either fail to execute such Second Agreement
    as of the close of business of the Separation Date or exercise
    your right to revoke such Agreement prior to the expiration of
    the applicable revocation period, then Freddie Mac’s
    obligations under Paragraphs B(1),
    B(2),
    B(3) and
    B(4) this
    Agreement shall be null and void and you agree to return to
    Freddie Mac within three (3) business days all of the cash
    payments and monetary equivalents of all benefits that you
    received, and you will not be eligible to receive any further
    consideration, pursuant to this Agreement.

 

    14.     Continuing Obligation To
    Adhere to Company Policies and Practices.  As
    a Freddie Mac employee prior to your Separation Date, you will
    continue to be subject to the requirements of the company’s
    Code of Conduct and you will be expected to continue to adhere
    to and implement all company policies and procedures and
    practices applicable and relevant to your job duties and
    responsibilities.

 

    15.     Termination of
    Employment.  Your last day of employment with
    Freddie Mac employment is May 9, 2008
    (“Separation Date”).

 

		
	
    B.     
	
    Benefits
    To Be Provided To You In Exchange for Signing This
    Agreement

 

    By signing below and thereby evidencing your acceptance of the
    restrictions and obligations imposed upon you by this Agreement,
    Freddie Mac will provide to you severance and other benefits as
    provided in this Section B.

    

    5

 

    1.     Continued
    Employment.  Freddie Mac agrees to employ you
    through your Separation Date. Freddie Mac has sole discretion
    prior to your Separation Date to place you on administrative
    leave with pay, at a salary equal to the salary you are
    receiving as of the date of this Agreement.

 

    2.     Severance
    Pay.  You may elect to receive severance pay
    over a course of time in accordance with Freddie Mac’s
    regularly scheduled payroll dates, or in one lump sum payment.
    Freddie Mac will deduct from your severance pay legal
    deductions, which may include, but may not be limited to, tax
    withholdings, deductions of amounts you owe to Freddie Mac, and
    deductions to cover your share of the costs associated with the
    continuation of certain benefits set forth below
    (“Deductions”). Failure to make an election between
    receiving severance pay over time or in one lump sum will result
    in such pay your being paid to you in one lump sum payment.

 

    You will receive your severance pay at the end of Freddie
    Mac’s first regular full payroll period that commences
    after the revocation period specified in the Agreement. As
    explained in more detail below under “COBRA Benefits
    Continuation,” your choice of how you receive severance pay
    affects the cost to you of continuing certain benefits.

 

    Please elect how to receive your severance by initializing in
    the space provided beside your election.

 

    (i). Severance Pay over Time: Your severance pay
    will be paid to you in an amount equal to your annualized base
    salary beginning on May 10, 2008, which is the calendar day
    after your Separation Date, and ending on May 9, 2009,
    minus lawful Deductions. The time during which you are receiving
    severance is the “Severance Period.”

 

    To elect to receive severance benefits over time in
    accordance with this
    Section (B)(2)(i),
    please initial here: ____________________.

 

    (ii). Severance in One Lump-Sum Payment: Your
    severance pay will be paid to you in one lump-sum payment of
    $350,000.00, minus lawful Deductions. Such payment will be made
    to you no later than Freddie Mac’s regularly scheduled full
    pay period following the expiration of the revocation period set
    forth in
    Paragraph D(2)
    of the Second Agreement.

 

    To elect to receive severance benefits in a lump sum in
    accordance with this
    Section (B)(2)(ii),
    please initial here:
         KD     .

 

    3.     Cash
    Payment.  You will receive a lump-sum cash
    payment in the amount of $776,333.00. Such payment will be made
    to you no later than Freddie Mac’s regularly scheduled full
    pay period following the expiration of the revocation period set
    forth in
    Paragraph D(2)
    of the Second Agreement.

    

    6

 

    4.     May 4, 2006,
    June 5, 2006, March 29, 2007 and March 7, 2008
    Restricted Stock Unit (RSU) Grants and June 5, 2006 Stock
    Option Grant.  You acknowledge that the Chief
    Executive Officer has sole discretion to determine whether
    certain restricted stock unit and stock option grants are
    subject to continued vesting after your Separation Date as a
    result of Freddie Mac terminating your employment due to
    “Special Circumstances.” Freddie Mac agrees that your
    May 4, 2006, June 5, 2006, March 29, 2007 and the
    March 6, 2008 RSU grants and your June 5, 2006 Stock
    Option Grant will continue to vest after your Separation Date
    pursuant to the vesting schedule and other terms set forth in
    the grant agreement.

 

    You will forfeit your March 7, 2008 Performance RSU grant
    as of your Separation Date.

 

    5.     Continuation Benefits
    Pursuant to COBRA.  You may be eligible to
    continue your medical, dental, and vision insurance coverage and
    EAP participation eligibility for the period of time beginning
    on June 1, 2008 (which is the first day of the month
    following your Separation Date) and ending on November 30,
    2009 (which is the last day of the month that is eighteen
    (18) months after the Separation Date), provided that you
    elect to do so within the applicable election period provided by
    the Consolidated Budget Reconciliation Act of 1985 (“COBRA
    Period”).

 

    In the event that you elect to receive severance pay over time,
    you are not eligible to receive Flex dollars; nevertheless, for
    that portion of the COBRA Period that overlaps with the
    Severance Period Freddie Mac will pay a portion of the costs
    associated with continuing your medical, dental, and vision
    insurance coverage and will continue your eligibility to
    participate in the Employee Assistance Program
    (“EAP”). After the Severance Period ends, Freddie Mac
    will no longer pay a portion of the costs for you to continue
    these benefits and the cost to you during the remainder of the
    COBRA Period will be 102 percent of the applicable premium
    for such coverage and services.

 

    In the event that you elect to receive severance pay in one lump
    sum payment, Freddie Mac will not pay a portion of the costs
    associated with your continuing these benefits during the COBRA
    Period and the cost to you to continue these benefits will be
    102 percent of the applicable premium for such coverage and
    services.

 

    6.     Outplacement
    Service.  Freddie Mae will provide
    outplacement services at no expense to you at the level of
    services provided to Senior Vice-Presidents of Freddie Mac. You
    must begin to use such outplacement services within twelve
    (12) months of your Separation Date or you forfeit the use
    of such services.

 

    In the event that you violate any performance, attendance or
    conduct standard set forth in Exhibit A to
    Policy 3-214,
    Progressive Discipline or violate Freddie Mac’s Code of
    Conduct prior to your Separation Date, Freddie Mac will
    terminate your employment for such reason and Freddie Mac’s
    obligations pursuant to
    Paragraphs B(1),
    B(3) and
    B(4) are
    null and void.

    

    7

 

    In the event that you engage in “Gross Misconduct”
    (as such term is defined in
    Policy 3-254.1,
    Severance — Officers) prior to your Separation Date,
    then Freddie Mac will terminate your employment for such reason
    and Freddie Mac’s obligation pursuant to
    Paragraph B(2)
    is null and void.

 

		
	
    C.     
	
    Interpretation
    and Enforcement of
    Agreement.

 

    1.     Virginia Law
    Applies. This Agreement will be construed, and the
    rights and obligations of the parties determined, exclusively in
    accordance with the substantive law of the Commonwealth of
    Virginia, excluding provisions of Virginia law concerning
    choice-of-law that would result in the law of any state other
    than Virginia being applied.

 

    2.     Venue.  Any
    claims, actions or proceedings arising out of or related to this
    Agreement will be brought in the United States District Court
    for the Eastern District of Virginia, Alexandria Division. You
    hereby submit to the personal jurisdiction of said Court and
    consent to the dismissal of any action related to this Agreement
    that is brought in any other forum.

 

    3.     Severability.  You
    agree that if a court of competent jurisdiction declares that
    Paragraph A(1)
    is invalid, then Freddie Mac shall be relieved of its
    obligations to make any further payments, or otherwise be
    obligated under,
    Paragraphs B(1),
    B(2),
    B(3) and
    B(4) of this
    Agreement. All other provisions of this Agreement arc separate
    and independent. Therefore, in the event a court of competent
    jurisdiction declares any other provision of this Agreement to
    be illegal or invalid, such declaration will not invalidate or
    otherwise affect the enforceability of the remaining provisions
    of this Agreement. In addition, if a court of competent
    jurisdiction declares that any provision is unenforceable
    because it is overbroad, including the provisions specifically
    referenced in this Paragraph, then the provision will be limited
    as required by applicable law, enforced as so limited, and will
    not affect the enforceability of the remaining provisions of
    this Agreement.

 

    4.     No Admission of
    Liability.  You agree that this Release does
    not constitute, nor should it be construed to constitute, an
    admission by any Released Party of any violation of federal,
    state, or local law, regulation, or ordinance, nor as an
    admission or liability under the common law or for any breach of
    duty any Released Party owed or owes to you.

 

    5.     Return of Consideration In
    the Event of Breach.  You agree that if you
    violate any provision of this Agreement, then you will promptly
    return to Freddie Mac all of the consideration that you received
    prior to the breach pursuant to
    Paragraphs B(1),
    B(2),
    B(3) and
    B(4),
    including all cash payments and monetary equivalents of all
    benefits, and that you will not be eligible to receive any
    further consideration pursuant to such Paragraphs. This
    paragraph does not apply ill the event that you bring any action
    against Freddie Mac under or pursuant to the federal
    Age Discrimination in Employment Act.

 

    6.     Additional Damages
    Available for Breach.  You agree that Freddie
    Mac will maintain all rights and remedies available to it at law
    and in equity in the event you

    

    8

 

    breach any provision of this Agreement. These rights and
    remedies may include, but not be limited to, the right to bring
    a court action to recover all consideration paid to you pursuant
    to this Agreement and any additional damages Freddie Mac may
    suffer as a result of such a breach. You also specifically
    recognize and agree that Freddie Mac will suffer irreparable
    injury in the event you breach or threaten to breach
    Paragraphs A(4), A(7), and A(8) of this Agreement.
    Therefore, you agree that in addition to any other remedies
    Freddie Mac may be entitled to receive for such breach, Freddie
    Mac also will be entitled to temporary, preliminary
    and/or
    permanent injunctive relief to restrain any such breach or
    threat of breach by you, and by any persons acting for
    and/or in
    concert with you. If Freddie Mac seeks injunctive relief
    pursuant to this Paragraph, then you expressly waive any
    requirement that Freddie Mac post bond.

 

    7.     Attorneys’
    Fees.  You and Freddie Mac agree that in any
    action arising out of this Agreement the non-prevailing party
    will pay the reasonable attorneys’ fees and court costs
    incurred by the “prevailing party” in connection with
    such action.

 

    8.     Construction.  You
    have the right and have had the opportunity to seek the
    independent legal advice of an attorney of your choosing
    regarding the meaning and advisability of signing this
    Agreement. Therefore, the common law principles of construing
    ambiguities against the drafter that otherwise may apply have no
    application to this Agreement.

 

		
	
    D.     
	
    Employee
    Rights

 

    1.     Ability to Enforce
    Agreement and Assist Government
    Investigations.  Nothing in this
    Agreement (including Paragraph A(5) above) prohibits or
    otherwise restricts you from: (1) instituting
    any legal action for the sole purpose of enforcing this
    Agreement; (2) making any disclosure of information
    required by law; (3) assisting any federal regulatory or
    law enforcement agency or legislative body to the extent you
    maintain a legal right to do so notwithstanding this Agreement
    and Release; (4) filing, testifying, participating in or
    otherwise assisting in a proceeding relating to the alleged
    violation of any federal, state, or local law, regulation, or
    rule, to the extent you maintain a legal right to do so
    notwithstanding this Agreement and Release; or (5) filing,
    testifying, participating in or otherwise assisting the
    Securities and Exchange Commission or any other proper authority
    a proceeding relating to allegations of fraud.

 

    2.     Retention of Vested
    Benefits.  Nothing in this Agreement affects
    your right to receive any employee benefits, including
    retirement benefits or 401(k) employer contributions, to which
    you have become vested pursuant to the terms and provisions of
    the benefit plans and programs governing such employee benefits.

 

		
	
    E.     
	
    No
    Knowledge of Fraudulent or Unlawful
    Conduct.

 

    You affirm that you have no knowledge of any fraudulent or
    unlawful conduct by any Released Party. You also affirm that:
    (l) you have not filed or caused to be filed on your behalf
    any claim for relief against Freddie Mac or any of the other
    Released Parties, and,

    

    9

 

    to the best of your knowledge and belief, no outstanding claim
    has been filed or asserted on your behalf against Freddie Mac or
    any of the other Released Parties; and (2) you have no
    knowledge of and have not reported any fact or circumstance or
    actual or alleged error, misstatement, misleading statement,
    act, omission, neglect or breach of duty that you have reason to
    believe might result in a current or future claim against any
    Released Party, other than as previously disclosed in the course
    of your regular duties as General Auditor.

 

		
	
    F.     
	
    OFHEO
    Approval.

 

    You acknowledge and understand that the terms of the
    employment termination benefits provided in this Agreement are
    contingent upon the approval of the Office of Federal Housing
    Enterprise Oversight (“OFHEO”). Notwithstanding any
    other provision hereof (including the terms of
    Paragraph B), in the event that OFHEO fails to approve the
    terms of any termination benefit provided in this Release, you
    and Freddie Mac agree to renegotiate in good faith such
    modifications of the termination benefit as may be necessary to
    obtain the approval of OFHEO.

 

		
	
    G.     
	
    Decision &
    Revocation
    Periods.

 

    1)     Consideration
    Period.  By signing below, you acknowledge
    that pursuant to the Older Workers Benefit Protection Act of
    1990, you have had a minimum of twenty-one (21) calendar
    days from the date you first received a copy of this Agreement
    to decide whether to accept its terms. You may return a
    signed agreement before twenty-one (21) days have elapsed,
    but are not required to do so. Furthermore, in order to receive
    the consideration provided in this Agreement, you must return a
    signed agreement on or before Thursday, May 22, 2008.

 

    2)     Revocation
    Period.  You agree that pursuant to the
    Older Workers Benefit Protection Act of 1990, this Agreement
    will not become effective until seven (7) calendar days
    after you sign it. Therefore, you have seven (7) calendar
    days after you sign this Agreement to revoke your acceptance of
    its terms. You may revoke your acceptance by providing
    written notification of your intention to revoke to Freddie
    Mac’s Vice-President — Business Partners, Human
    Resources Division. To be effective, the above-named official
    must actually receive the written notification by no
    later than the close of business on the seventh calendar day
    after you have signed the Agreement. Your revocation of your
    acceptance of the terms of this Agreement will relieve Freddie
    Mac from payment and provision of all consideration payable to
    you pursuant to this Agreement.

 

    By signing below, you acknowledge, warrant, and agree
    that:

 

			
	 	    1. 
	
    You have been advised to discuss all aspects of this
    Agreement with your private attorney
    and/or other
    individuals of your choice who are not associated  

    

    10

 

			
	 	
	
    with Freddie Mac to the extent that you desire (but subject
    to the confidentiality obligations set forth in this
    Agreement);

 

			
	 	    2. 
	
    You have read this Agreement carefully and fully understand
    the significance of all of its provisions;

	 
	 	    3. 
	
    You sign this Agreement voluntarily and accept all
    obligations contained in it in exchange for the consideration
    you will receive pursuant to this Agreement, which you
    acknowledge is adequate and satisfactory, and which you further
    acknowledge Freddie Mac is not otherwise obligated to provide to
    you; and

	 
	 	    4. 
	
    Neither Freddie Mac, nor its agents, representatives,
    directors, officers or employees have made any representations
    to you concerning the terms or effects of this Agreement, other
    than those explicitly contained in this Agreement.

 

    I have executed this Agreement this 1 day of May 2008.

 

 

    /s/  Kirk
    Die

    Kirk Die

    FOR FREDDIE MAC

    BY:
    /s/  Scott
    Coolidge

    (Name, Title and Date)

    VP HR Business Partners

    5/1/08

    

    11

 

    EXHIBIT A

 

    SECOND
    AGREEMENT AND RELEASE

 

	 	 	 
	
    To:
	
 
	
    Kirk Die

	
     
	
 
	
 

	
    Date Delivered

    to Employee:
	
 
	
    April 7, 2008

 

    Freddie Mac has offered you valuable consideration in
    exchange for your agreement to be bound by the terms of this
    Second Agreement and Release (“Second Agreement”).
    Please be advised that, by signing this Second Agreement, you
    will be releasing Freddie Mac of all legal claims you have,
    regardless of whether you currently are aware of them.
    Therefore, Freddie Mac advises you to consult with an attorney
    before you sign this document.

 

		
	
    A.     
	
    Obligations
    and Restrictions Imposed Upon You By This Second
    Agreement

 

    By signing below, you agree to be bound legally to the following
    terms:

 

    1.     Full Release: In
    your individual and representative capacities, you irrevocably
    and unconditionally waive, release, and forever discharge the
    Federal Home Loan Mortgage Corporation (“Freddie
    Mac”), its predecessors, successors and assigns, and each
    of their respective directors, officers, employees, fiduciaries,
    administrators, trustees, shareholders, and agents
    (collectively, “the Released Parties”) from any
    claims, charges, demands, sums of money, actions, rights,
    promises, causes of action, obligations, and liabilities of any
    kind or nature, in law or equity, whether known or unknown,
    existing or contingent, apparent or concealed (collectively,
    “claims”) that you have ever had or currently have
    against the Released Parties. This release extends to all
    claims, whether asserted by you or asserted on your behalf by
    your heirs, executors, beneficiaries, administrators,
    successors, assigns or trustees. Claims that you release
    include, but are not limited to, all claims arising out of or in
    relation to your employment with Freddie Mac, whether arising
    under express or implied contract, tort, common law, or federal,
    state, or local laws, ordinances, or regulations. This release
    also extends to all claims on account or arising out of the
    negotiation or execution of this Second Agreement. A
    non-exhaustive list of the types of claims you release include
    all claims for fraud, defamation, wrongful termination, and
    whistle-blower claims, as well as claims for discrimination,
    harassment, attorney’s fees and costs, and retaliation
    arising under any federal, state, or local law, such as claims
    arising under Title VII of the Civil Rights Act of 1964, the
    Civil Rights Act of 1866, the Age Discrimination in
    Employment Act (“ADEA”), as amended by the Older
    Workers Benefit Protection Act of 1990, the Uniformed Services
    Employment and Re-employment Rights Act of 1994; the Immigration
    Reform Control Act, the Equal Pay Act of 1963, the Occupational
    Safety and Health Act, the Vocational Rehabilitation Act of
    1973, the Vietnam Era Veterans’

    

    12

 

    Readjustment Assistance Act of 1974, the Americans with
    Disabilities Act, the Employee Retirement Income Security Act of
    1974 (“ERISA”), the National Labor Relations Act, 1978
    Uniform Guidelines on Employee Selection Procedures, the
    Comprehensive Omnibus Budget Reconciliation Act of 1986; the
    Sarbanes-Oxley Act of 2002, any amendments to the foregoing laws
    or regulations, all state laws and municipal ordinances, and the
    United States Constitution. Notwithstanding the foregoing, this
    Release does not extend, nor purport to release, any claims that
    Freddie Mac may not lawfully request that you release.

 

    Notwithstanding this
    Paragraph A(1),
    nothing in this Agreement releases, waives or otherwise affects
    any rights you may have to advancement
    and/or
    indemnification pursuant to the terms and conditions set forth
    in Freddie Mac’s Bylaws and applicable law.

 

		
	
    B.     
	
    Benefits
    To Be Provided To You In Exchange for Signing This Second
    Agreement

 

    By signing below and thereby evidencing your acceptance of the
    restrictions and obligations imposed upon you by this Second
    Agreement, you acknowledge that Freddie Mac has agreed to
    provide to you the payments and other consideration pursuant to
    the terms of the Agreement and Release dated April 7, 2008,
    as revised May 1, 2008 and executed by you on May 1,
    2008 (“First Agreement”), this Second Agreement
    provides no additional payments, benefits or consideration
    beyond any payments, benefits and consideration you receive
    under the terms of that First Agreement and that such payments,
    benefits and such consideration constitutes adequate
    consideration for your execution of and adherence to the terms
    of this Second Agreement. In the event that you fail to execute
    this Second Agreement on or before the period set forth in
    Paragraph D, then each of your and each of Freddie
    Mac’s respective obligations pursuant to the terms of each
    of the First Agreement and this Second Agreement shall be null
    and void and you agree to return to Freddie Mac within three
    (3) business days all of the consideration that you
    received, including all cash payments and monetary equivalents
    of all benefits, and that you will not be eligible to receive
    any further consideration, under the First Agreement.

 

		
	
    C.     
	
    Incorporation
    By Reference of Terms and Conditions Set Forth in The First
    Agreement and
    Release.

 

    You acknowledge and agree that all of the terms and conditions
    set forth in Paragraphs A(2) through A(15), B, C, D E and F
    are incorporated herein by reference as terms and conditions of
    this Second Agreement and Release as modified to the extent
    necessary to make such provisions of such Paragraphs fully
    applicable to this Second Agreement.

 

		
	
    D.     
	
    Decisions
    and Revocation
    Period.

 

    1.     Consideration
    Period.  By signing below you acknowledge that
    you have had a minimum of twenty-one (21) calendar days
    from the date you first received a copy of this

    

    13

 

    Second Agreement to decide whether to accept its terms. You
    may not return a signed Second Agreement before your Separation
    Date (as such term is defined in the First Agreement).
    Furthermore, in order to receive the consideration provided in
    this Agreement, you must return a signed agreement no later than
    three calendar days after your Separation Date.

 

    2)     Revocation
    Period.  You acknowledge that pursuant to
    the Older Workers Benefit Protection Act of 1990, this Agreement
    will not become effective until seven (7) calendar days
    after you sign it. Therefore, you have seven (7) calendar
    days after you sign this Agreement to revoke your acceptance of
    its terms. You may revoke your acceptance by providing
    written notification of your intention to revoke to Freddie
    Mac’s Vice-President — Business Partners, Human
    Resources Division. To be effective, the above-named official
    must actually receive the written notification by no
    later than the close of business on the seventh calendar day
    after you have signed the Agreement. Your revocation of your
    acceptance of the terms of this Agreement will relieve Freddie
    Mac from payment and provision of all consideration payable to
    you pursuant to this Agreement.

 

    By signing below, you acknowledge, warrant, and agree
    that:

 

			
	 	    a. 
	
    You have been advised to discuss all aspects of this Second
    Agreement with your private attorney
    and/or other
    individuals of your choice who are not associated with Freddie
    Mac to the extent that you desire (but subject to the
    confidentiality obligations set forth in this Second
    Agreement);

	 
	 	    b. 
	
    You have read this Second Agreement carefully and fully
    understand the significance of all of its provisions;

 

			
	 	    c. 
	
    You sign this Second Agreement voluntarily and accept all
    obligations contained in it in exchange for the consideration
    you will receive pursuant to the First Agreement, which you
    acknowledge is adequate and satisfactory, and which you further
    acknowledge Freddie Mac is not otherwise obligated to provide to
    you; and

 

			
	 	    d. 
	
    Neither Freddie Mac, nor its agents, representatives,
    directors, officers or employees have made any representations
    to you concerning the terms or effects of this Second Agreement,
    other than those explicitly contained in this Second
    Agreement.

 

    I have executed this Agreement this 9th day of May 2008.

 

 

    /s/  Kirk
    Die

    Kirk Die

    FOR FREDDIE MAC

    BY:
    /s/  Scott
    Coolidge

    (Name, Title and Date)

    VP HR Business Partners

    

    14

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