Document:

exv10w49

 

    Exhibit
    10.49

 

    [Freddie
    Mac letterhead]

 

	 	 	 
	

Date
October 14, 2006

From
Paul G. George

Subject
Employment Agreement

	
 
	
    To

    Anthony S. Piszel

 

    This agreement sets forth Freddie Mac’s agreement to employ
    you pursuant to the terms and conditions set forth herein
    (“Agreement). Your employment with Freddie Mac will begin
    no later
    than          
    November 15, 2006. The actual start date is referred to as
    the “Employment Date.”

 

    This Agreement supersedes any previous communications you may
    have had with Freddie Mac or anyone acting on its behalf
    concerning the terms and conditions of your employment with
    Freddie Mac.

 

    I.  Employment

 

    Freddie Mac agrees to employ you as its Executive
    Vice-President — Finance and Chief Financial Officer,
    subject to your execution of the enclosed Restrictive Covenant
    and Confidentiality Agreement, and Freddie Mac’s complete
    satisfaction with the results of your background check and
    substance abuse test. Initially, you will report to Gene
    McQuade, Freddie Mac’s President and Chief Operating
    Officer. Thereafter, during the course of your employment
    Freddie Mac may have you report to the Chief Executive Officer,
    the President, the Chief Operating Officer, any combination of
    those positions, or any other reporting relationship mutually
    agreed to by both parties.

 

    II.  Compensation

 

    Subject to the termination of employment provisions set forth in
    Paragraph IV, below, Freddie Mac agrees to pay you the
    following:

 

    A. Base Salary

 

    Beginning on your Employment Date and subject to your continued
    employment, your annualized base salary will be no less than
    $650,000 (which is approximately $54,166.66 per month). All
    employees receive performance evaluations in accordance with
    Freddie Mac’s corporate employee performance management
    program. Freddie Mac has the sole discretion and absolute
    authority in determining whether to implement a salary
    adjustment.

 

    If you terminate your employment with Freddie Mac at any time
    for any reason, your salary will terminate as of the date your
    employment terminates.

 

    Employment Agreement — Anthony S. Piszel

    October 14, 2006

    Page 2 of 7

 

    B. Short-Term and Long-Term Performance-Based Incentive
    Compensation

 

    You will be eligible for consideration for a discretionary
    short-term performance-based incentive bonus, which, if
    received, will be based on Freddie Mac’s assessment of your
    performance against objectives, as well as company and division
    performance, and your performance relative to others. Your
    target incentive will be equal $1,007,500. The actual bonus you
    receive attributable to any performance period shall be
    determined in the sole discretion of the Compensation and Human
    Resources Committee (the “Committee”) of the Board of
    Directors of Freddie Mac, subject to the guaranteed amounts
    outlined below. The Committee has the sole discretion and
    absolute authority in determining whether to increase your
    target incentive. While Freddie Mac currently pays such bonuses
    in cash, any such payment, if made, shall be subject to
    corporate executive compensation plans, practices and policies
    in effect as of the date of payment.

 

    Notwithstanding the preceding paragraph, Freddie Mac agrees that
    you will receive short-term performance-based incentive
    attributable to performance during calendar year 2006 (payable
    in 2007 when other Freddie Mac executive officers receive such
    bonus) and attributable to performance during calendar year 2007
    (payable in 2008 when other Freddie Mac executive officers
    receive such bonus) of no less than $600,000 and $1,007,500,
    respectively.

 

    You also will be eligible for consideration for a discretionary
    long-term performance-based incentive award, which, if received,
    also will be based on Freddie Mac’s assessment of your
    performance and potential relative to others. The award you
    receive attributable to any performance period shall be
    determined in the sole discretion of the Committee, subject to
    the guaranteed amount outlined below. Such awards currently are
    made in a combination of restricted stock units and stock
    options and your target amount for this incentive will be
    $3,000,000. The Committee has the sole discretion and absolute
    authority in determining whether to increase your target
    incentive. All aspects of the award, including vesting schedule,
    the number of units
    and/or
    shares subject to the grants, shall be subject to the corporate
    plans, practices and policies in effect at that time of the
    grant.

 

    Notwithstanding the preceding paragraph, Freddie Mac agrees that
    the long-term performance-based incentive granted in calendar
    year 2007 (granted in 2007 when other Freddie Mac executive
    officers receive such award) will be no less than $3,000,000.

 

    III.  One-Time
    Sign-On Bonus

 

    Subject to your beginning employment with Freddie Mac, you will
    receive a one-time sign-on bonus of $7,500,000, which will be
    comprised of $2,500,000 cash and $5,000,000 in the form of
    restricted stock units.

 

    The cash portion of this sign-on will be paid to you in your
    first full semi-monthly paycheck, and will be subject to
    repayment in the event that, prior to the second anniversary of
    your Employment Date, you

 

    Employment Agreement — Anthony S. Piszel

    October 14, 2006

    Page 3 of 7

 

    terminate your employment with Freddie Mac for any reason or
    Freddie Mac terminates your employment for reason that
    constitutes “Cause” as defined in Exhibit A
    hereto.

 

    The number of restricted stock units subject to your sign-on
    grant will be 78,940, which is equal to $5,000,000 divided by
    $63.34, the fair market value of a share of Freddie Mac common
    stock on September 7, 2006, which is the date that the
    Committee approved the terms of compensation set forth in this
    Agreement. The effective date of grant shall be the date of the
    next regular scheduled meeting of the Committee following your
    Employment Date (the “Grant Date”). The restricted
    stock units subject to this one-time grant will have a four-year
    vesting schedule, with 25% of the grant vesting on the each of
    the first, second, third and fourth anniversaries of the Grant
    Date. The treatment of such award in the event that Freddie Mac
    terminates your employment for any reason other than
    “Cause” (as defined in Exhibit A hereto) prior to
    the fourth anniversary of the Grant Date is set forth in the
    succeeding Paragraph.

 

		
	
    IV.  
	
    Compensation
    In the Event That Freddie Mac Terminates Your
    Employment

 

    A. Termination of Employment Payment

 

    In the event that prior to the fourth anniversary of your
    Employment Date Freddie Mac terminates your employment for any
    reason other than “Cause” (as defined in
    Exhibit A hereto), then you will receive a lump-sum cash
    payment equal to two-times your annualized base salary in effect
    at the time of termination. Such payment will be made to you no
    later than ten (10) business days after your employment
    termination date.

 

    In the event that you terminate your employment for any reason
    or Freddie Mac terminates your employment for “Cause”
    (as defined in Exhibit A), then you will not receive the
    termination of employment payment outlined in this section.

 

    The termination of employment payment provided pursuant to the
    terms of this Paragraph shall be in lieu of, and not in addition
    to, any right you may have to payment pursuant to the terms of
    any otherwise applicable severance plan, policy or practice.
    Consequently, by entering into this Agreement you agree that in
    the event of the termination of your employment prior to the
    fourth anniversary of your Employment Date you will not be
    eligible to receive and you will not receive severance pay
    pursuant to any Freddie Mac severance plan, policy or practice.

 

    In the event of the termination of your employment after the
    fourth anniversary of your Employment Date, you will be eligible
    to receive severance pay pursuant to the terms of any applicable
    Freddie Mac severance plan or policy.

 

    Employment Agreement — Anthony S. Piszel

    October 14, 2006

    Page 4 of 7

 

    B. Treatment of One-Time Sign-On Grant of Restricted
    Stock Units

 

    In the event that Freddie Mac terminates your employment for any
    reason other than “Cause” (as defined in
    Exhibit A hereto) between the first and fourth
    anniversaries of the Grant Date, then the one-time sign-on
    restricted stock unit award granted pursuant to the terms of
    Paragraph III herein shall continue to vest pursuant to the
    vesting schedule set forth in the grant agreement.

 

    In the event that Freddie Mac terminates your employment for any
    reason other than “Cause” (as defined in
    Exhibit A hereto) prior to the first anniversary of the
    Grant Date, then the one-time sign on grant shall be cancelled
    and in consideration Freddie Mac will pay you $5,000,000.
    Freddie Mac will make such payment not later than ten
    (10) business days after your employment termination date.

 

    In the event that you terminate your employment for any reason
    or Freddie Mac terminates your employment for “Cause”
    (as defined in Exhibit A), then any unvested restricted
    stock units shall be forfeited.

 

    The termination of employment benefits set forth in this
    Paragraph IV are not effective and will not be paid unless
    and until approved by Freddie Mac’s regulator, the Office
    of Federal Housing Enterprise Oversight.

 

    V.  Relocation
    Benefit

 

    In addition to Freddie Mac’s standard senior
    executive-officer relocation benefits, you will receive the
    following supplemental benefits:

 

    • Four months temporary living at a local hotel or a
    comparable living arrangement in lieu of Freddie Mac’s
    standard temporary living relocation benefit;

 

    • Reimbursement of up to $40,000 in travel costs
    incurred by you and your immediate family members traveling
    between the metropolitan D.C. area and your current residence
    prior to permanent relocation of your family to the D.C.
    area; and

 

    • A cash payment of $200,000 which is intended to be
    used for relocation expenses not covered by Freddie Mac’s
    standard senior executive officer relocation benefit, and such
    amount will be
    grossed-up
    to offset your personal tax liability associated with the
    $200,000 payment.

 

    VI.  Other
    Benefits

 

    You will be eligible to participate in all employee benefit
    plans pursuant to the terms of those plans offered to Freddie
    Mac senior executives (as may be modified or terminated from
    time to time by Freddie Mac in its sole discretion). Freddie Mac
    will reimburse you up to $25,000 for legal expenses incurred in
    connection with this Agreement and your separation of employment
    from your current employer.

 

    Employment Agreement — Anthony S. Piszel

    October 14, 2006

    Page 5 of 7

 

    VII.  Confidentiality

 

    Subject to Paragraph IV(D) of the attached Restrictive
    Covenant and Confidentiality Agreement and except to the extent
    of Freddie Mac’s public disclosure of any specific terms
    and conditions of this Agreement, you agree that prior to,
    during and after the cessation of your employment for any
    reason, you will not disclose either the existence of or any
    information about this letter to any person other than your
    attorney, accountant, tax advisor or members of your immediate
    family, and then only if they agree to keep such information
    confidential.

 

    VIII.  Other
    Matters

 

    Freddie Mac is an at-will employer. Accordingly, Freddie Mac and
    you each retain the right to terminate your employment at any
    time for any reason with or without cause. Nothing in this
    letter sets forth any express or implied contractual obligations
    on the part of either Freddie Mac or you to continue employment
    for a specified or
    agreed-upon
    duration. In the event that your employment terminates for any
    reason, you will be deemed to have resigned, effective as of the
    date of such termination, from all positions, titles, duties,
    authorities and responsibilities arising out of or relating to
    your employment, including any directorships or fiduciary
    positions in which you were serving at the request of, or
    appointment by, Freddie Mac.

 

    Paragraphs II, III, IV, V and VII of this Agreement
    sets forth the entirety of Freddie Mac’s and your
    obligation with respect to the terms and conditions of your
    compensation and such terms may be modified only by approval of
    the Compensation and Human Resources Committee of the Board of
    Directors of Freddie Mac and written agreement signed by Freddie
    Mac’s Executive Vice-President of Human Resources and you.

 

    In the event of a conflict between a specific term and condition
    of your compensation or employment as set forth in this
    Agreement and a term and condition of your compensation or
    employment as set forth in any Freddie Mac plan, policy or
    procedure, then the term and condition of this Agreement shall
    govern.

 

    This Agreement will be governed by and construed in accordance
    with the laws of the Commonwealth of Virginia, without regard to
    its conflicts-of-laws provisions.

 

    During the course of your review of this Agreement, we expect
    that you have had the opportunity to receive assistance from
    appropriate advisors, including legal, tax, and financial
    advisors. You agree that, except to the extent of Freddie
    Mac’s public disclosure of the terms and conditions of this
    Agreement, you will not disclose any specific information about
    this Agreement to any person other than your attorney,
    accountant, tax advisor or members of your immediate family, and
    then only if they agree to keep such information confidential.

 

    Employment Agreement — Anthony S. Piszel

    October 14, 2006

    Page 6 of 7

 

    To indicate your acceptance of and agreement to be bound by the
    terms of this Agreement, please return to me one executed copy
    together with an executed copy of the enclosed Restrictive
    Covenant and Confidentiality Agreement. Additional copies of the
    agreements are enclosed for your records.

 

	 	 	 
	

    /s/  Anthony
    S. Piszel

	
 
	
    Date:  October 14, 2006

	
 
	
 
	
 

	

    Anthony S. Piszel

	
 
	
 

 

    Attachment

 

    EXHIBIT A
    TO

 

    OCTOBER
    14, 2006 EMPLOYMENT AGREEMENT

 

    DEFINITION
    OF “CAUSE”

 

    For purposes of the October 14, 2006 Employment
    Agreement between Freddie Mac and Anthony Piszel, the term
    “Cause” shall mean the following:

 

			
	 	    • 
	
    Employee’s unwillingness or inability to adequately perform
    the employee’s job duties;

	 
	 	    • 
	
    Insubordination;

	 
	 	    • 
	
    Intentional conduct materially detrimental to Freddie Mac, or
    its reputation, or its operations or activities;

	 
	 	    • 
	
    Intentional violation of the Code of Conduct;

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

	 
	 	    • 
	
    Committing fraud, including computer fraud;

	 
	 	    • 
	
    Willfully destroying property;

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

	 
	 	    • 
	
    Committing unlawful harassment or intentional discrimination;

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

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

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

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

 

    ###exv10w50

 

    Exhibit
    10.50

 

    RESTRICTIVE
    COVENANT AND CONFIDENTIALITY AGREEMENT

 

    In exchange for the mutual promises and consideration set forth
    below, this Restrictive Covenant and Confidentiality Agreement
    (“Agreement”) is entered into by and between the
    Federal Home Loan Mortgage Corporation (“Freddie Mac”
    or “Company”) and Anthony S. Piszel
    (“Executive”), effective as of this 14th day of
    October, 2006.

 

    I.  Definitions

 

    The following terms shall have the meanings indicated when used
    in this Agreement.

 

    A.  Competitor: The following entities, and
    their respective parents, successors, subsidiaries, and
    affiliates are competitors: (i) Fannie Mae (ii) all
    Federal Home Loan Banks (including the Office of Finance); and
    (iii) such other entities to which Executive and the
    Company may agree in writing from time-to-time.

 

    B.  Confidential Information: Information or
    materials in written, oral, magnetic, digital, computer,
    photographic, optical, electronic, or other form, whether now
    existing or developed or created during the period of
    Executive’s employment with Freddie Mac, that constitutes
    trade secrets
    and/or
    proprietary or confidential information. This information
    includes, but is not limited to: (i) all information marked
    Proprietary or Confidential; (ii) information concerning
    the components, capabilities, and attributes of Freddie
    Mac’s business plans, methods, and strategies;
    (iii) information relating to tactics, plans, or strategies
    concerning shareholders, investors, pricing, investment,
    marketing, sales, trading, funding, hedging, modeling, sales and
    risk management; (iv) financial or tax information and
    analyses, including but not limited to, information concerning
    Freddie Mac’s capital structure and tax or financial
    planning; (v) confidential information about Freddie
    Mac’s customers, borrowers, employees, or others;
    (vi) pricing and quoting information, policies, procedures,
    and practices; (vii) confidential customer lists;
    (viii) proprietary algorithms; (ix) confidential
    contract terms; (x) confidential information concerning
    Freddie Mac’s policies, procedures, and practices or the
    way in which Freddie Mac does business; (xi) proprietary or
    confidential data bases, including their structure and content;
    (xii) proprietary Freddie Mac business software, including
    its design, specifications and documentation;
    (xiii) information about Freddie Mac products, programs,
    and services which has not yet been made public;
    (xiv) confidential information about Freddie Mac’s
    dealings with third parties, including dealers, customers,
    vendors, and regulators;
    and/or
    (xv) confidential information belonging to third parties to
    which Executive received access in connection with
    Executive’s employment with Freddie Mac. Confidential
    Information does not include general skills, experience, or
    knowledge acquired in connection with Executive’s
    employment with Freddie Mac that otherwise are generally known
    to the public or within the industry or trade in which Freddie
    Mac operates.

 

    C.  Severance: Cash compensation paid pursuant
    to Freddie Mac’s Severance Policy.

 

    D.  Severance Policy: Freddie Mac
    Policy 3-254.1
    (Severance — Officers), or any subsequent and
    superceding severance policy.

 

    II.  Non-Competition

 

    Executive recognizes that as a result of Executive’s
    employment with Freddie Mac, Executive has access to and
    knowledge of critically sensitive Confidential Information, the
    improper disclosure or use of which would result in grave
    competitive harm to Freddie Mac. Therefore, Executive agrees
    that neither during Executive’s employment with Freddie
    Mac, nor for the twelve (12) months immediately following
    termination of Executive’s employment for any reason, will
    Executive consider offers of employment from, seek or accept
    employment with, or otherwise directly or indirectly provide
    professional services to any Competitor, if the Executive will
    be render duties, responsibilities or services for the
    Competitor that are of the type and nature rendered or performed
    by you during the past two years of your employment with Freddie
    Mac. Executive acknowledges and agrees that this covenant has
    unique, substantial and immeasurable value to Freddie Mac, that
    Executive has sufficient skills to provide a livelihood for
    Executive while this covenant remains in force, and that this
    covenant will not interfere with Executive’s ability to
    work consistent with Executive’s experience, training and
    education. This non-competition covenant applies regardless of
    whether Executive’s employment is terminated by Executive,
    by Freddie Mac, or by a joint decision.

 

    III.  Non-Solicitation
    and Non-Recruitment

 

    During Executive’s employment with Freddie Mac and for a
    period of twelve (12) months after Executive’s
    termination date, Executive will not solicit or recruit, attempt
    to solicit or recruit or assist another in soliciting or
    recruiting any Freddie Mac managerial employee (including
    manager-level, Executive-level, or officer-level employee) with
    whom Executive worked, or any employee whom Executive directly
    or indirectly supervised at Freddie Mac, to leave the
    employee’s employment with Freddie Mac for purposes of
    employment or for the rendering of professional services. This
    prohibition against solicitation does not apply if Freddie Mac
    has notified the employee being solicited or recruited that
    his/her
    employment with the Company will be terminated pursuant to a
    corporate reorganization or
    reduction-in-force.

 

    IV.  Treatment
    of Confidential Information

 

    A.  Non-Disclosure. Executive recognizes that
    Freddie Mac is engaged in an extremely competitive business and
    that, in the course of performing Executive’s job duties,
    Executive will have access to and gain knowledge about
    Confidential Information. Executive further recognizes the
    importance of carefully protecting this Confidential Information
    in order for Freddie Mac to compete successfully. Therefore,
    Executive agrees that Executive will neither divulge
    Confidential Information to any persons, including to other
    Freddie Mac employees who do not have a Freddie Mac
    business-related need to know, nor make use of the Confidential
    Information for the Executive’s own benefit or for the
    benefit of anyone else other than Freddie Mac. Executive further
    agrees to take all reasonable precautions to prevent the
    disclosure of Confidential Information to unauthorized persons
    or entities, and to comply with all Company policies,
    procedures, and instructions regarding the treatment of such
    information.

 

     

    Page 2 of 6

 

    B.  Return of Materials. Executive agrees that
    upon termination of Executive’s employment with Freddie Mac
    for any reason whatsoever, Executive will deliver to
    Executive’s immediate supervisor all tangible materials
    embodying Confidential Information, including, but not limited
    to, any documentation, records, listings, notes, files, data,
    sketches, memoranda, models, accounts, reference materials,
    samples, machine-readable media, computer disks, tapes, and
    equipment which in any way relate to Confidential Information,
    whether developed by Executive or not. Executive further agrees
    not to retain any copies of any materials embodying Confidential
    Information.

 

    C.  Post-Termination Obligations. Executive
    agrees that after the termination of Executive’s employment
    for any reason, Executive will not use in any way whatsoever,
    nor disclose any Confidential Information learned or obtained in
    connection with Executive’s employment with Freddie Mac
    without first obtaining the written permission of the Executive
    Vice President of Human Resources of Freddie Mac. Executive
    further agrees that, in order to assure the continued
    confidentiality of the Confidential Information, Freddie Mac may
    correspond with Executive’s future employers to advise them
    generally of Executive’s exposure to and knowledge of
    Confidential Information, and Executive’s obligations and
    responsibilities regarding the Confidential Information.
    Executive understands and agrees that any such contact may
    include a request for assurance and confirmation from such
    employer(s) that Executive will not disclose Confidential
    Information to such employer(s), nor will such employer(s)
    permit any use whatsoever of the Confidential Information. To
    enable Freddie Mac to monitor compliance with the obligations
    imposed by this Agreement, Executive further agrees to inform in
    writing Freddie Mac’s Executive Vice President of Human
    Resources of the identity of Executive’s subsequent
    employer(s) and Executive’s prospective job title and
    responsibilities prior to beginning employment. Executive agrees
    that this notice requirement shall remain in effect for twelve
    (12) months following the termination of Executive’s
    Freddie Mac employment.

 

    D.  Ability to Enforce Agreement and Assist
    Government Investigations. Nothing in this Agreement
    prohibits or otherwise restricts you from: (1) making any
    disclosure of information required by law; (2) assisting
    any regulatory or law enforcement agency or legislative body to
    the extent you maintain a legal right to do so notwithstanding
    this Agreement; (3) 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; or (4) filing, testifying,
    participating in or otherwise assisting the Securities and
    Exchange Commission or any other proper authority in a
    proceeding relating to allegations of fraud.

 

    V.  Consideration
    Given to Executive

 

    In exchange for agreeing to be bound by the terms, conditions,
    and restrictions stated in this Agreement, Freddie Mac will
    provide the Executive with the following consideration, each of
    which itself is adequate consideration for Executive’s
    agreement to be bound by the provisions of this Agreement:

 

    A.  Employment. Executive will be employed by
    Freddie Mac as Executive Vice President — Finance and
    Chief Financial Officer.

 

     

    Page 3 of 6

 

    B.  Long-Term Incentive Grant. Executive will
    receive a 2007 Long-Term Incentive Grant pursuant to the terms
    approved by the Compensation and Human Resources Committee of
    the Freddie Mac Board of Directors.

 

    VI.  Reservation
    of Rights

 

    Executive agrees that nothing in this Agreement constitutes a
    contract or commitment by Freddie Mac to continue
    Executive’s employment in any job position for any period
    of time, nor does anything in this Agreement limit in any way
    Freddie Mac’s right to terminate Executive’s
    employment at any time for any reason.

 

    VII.  Compliance
    with the Code of Conduct and Corporate Policies &
    Procedures

 

    As a Freddie Mac employee, Executive will be subject to Freddie
    Mac’s Code of Conduct (“Code”) and to Corporate
    Policy 1-906,
    Investment Limitations Policy (“Policy”) that, among
    other things, limit the investment activities of Freddie Mac
    employees. Executive agrees to fully comply with the Code and
    the Policy, copies of which are enclosed for Executive’s
    review.

 

    Executive further agrees to be bound by, and comply fully with,
    his/her
    obligations under the Investment Limitations Policy. Executive
    agrees to consult with Freddie Mac’s Chief Compliance
    Officer as soon as practical prior to beginning employment about
    any investments that Executive or a “covered household
    member,” as that term is defined in the Policy, may have
    that may be prohibited by the Policy. Executive also agrees to
    disclose prior to beginning employment any other matter or
    situation that may create a conflict of interest as such term is
    defined in the Code.

 

    In addition, prior to beginning employment, Executive agrees to
    disclose to Freddie Mac’s Human Resources Division the
    terms of any employment, confidentiality or stock grant
    agreements to which Executive may currently be subject that may
    affect Executive’s future employment or recruiting
    activities so that Freddie Mac may ensure that Executive’s
    employment by Freddie Mac and conduct as a Freddie Mac employee
    are not inconsistent with any of their terms.

 

    VIII.  Absence
    of Any Conflict of Interest

 

    Executive represents that Executive does not have any
    confidential information, trade secrets or other proprietary
    information that Executive obtained as the result of
    Executive’s employment with another employer that Executive
    will be using in Executive’s position at Freddie Mac.
    Executive also represents that Executive is not subject to any
    employment, confidentiality or stock grant agreements, or any
    other restrictions or limitations imposed by a prior employer,
    which would affect Executive’s ability to perform the
    duties and responsibilities for Freddie Mac in the job position
    offered, and further represents that Executive has provided
    Freddie Mac with copies of any such agreements or limitations so
    that Freddie Mac can make an independent judgment that
    Executive’s employment with Freddie Mac is not inconsistent
    with any of its terms.

 

     

    Page 4 of 6

 

    IX.  Enforcement

 

    A.  Executive acknowledges that Executive may be
    subject to discipline, up to and including termination of
    employment, for Executive’s breach or threat of breach of
    any provision of this Agreement.

 

    B.  Executive agrees that irreparable injury will
    result to Freddie Mac’s business interests in the event of
    breach or threatened breach of this Agreement, the full extent
    of Freddie Mac’s damages will be impossible to ascertain,
    and monetary damages will not be an adequate remedy for Freddie
    Mac. Therefore, Executive agrees that in the event of a breach
    or threat of breach of any provision(s) of this Agreement,
    Freddie Mac, in addition to any other relief available, shall be
    entitled to temporary, preliminary, and permanent equitable
    relief to restrain any such breach or threat of breach by
    Executive and all persons acting for
    and/or in
    concert with Executive, without the necessity of posting bond or
    security, which Executive expressly waives.

 

    C.  Executive agrees that each of Executive’s
    obligations specified in this Agreement is a separate and
    independent covenant, and that all of Executive’s
    obligations set forth herein shall survive any termination, for
    any reason, of Executive’s Freddie Mac employment. To the
    extent that any provision of this Agreement is determined by a
    court of competent jurisdiction to be unenforceable because it
    is overbroad, that provision shall be limited and enforced to
    the extent permitted by applicable law. Should any provision of
    this Agreement be declared or determined by any court of
    competent jurisdiction to be unenforceable or invalid under
    applicable law, the validity of the remaining obligations will
    not be affected thereby and only the unenforceable or invalid
    obligation will be deemed not to be a part of this Agreement.

 

    D.  This Agreement is governed by, and will be
    construed in accordance with, the laws of the Commonwealth of
    Virginia, without regard to its or any other jurisdiction’s
    conflict-of-law provisions. Executive agrees that any action
    related to or arising out of this Agreement shall be brought
    exclusively in the United States District Court for the Eastern
    District of Virginia, and Executive hereby irrevocably consents
    to personal jurisdiction and venue in such court and to service
    of process by United States Mail or express courier service in
    any such action.

 

    E.  If any dispute(s) arise(s) between Freddie Mac and
    Executive with respect to any matter which is the subject of
    this Agreement, the prevailing party in such dispute(s) shall be
    entitled to recover from the other party all of its costs and
    expenses, including its reasonable attorneys’ fees.

 

    Executive has been advised to discuss all aspects of this
    Agreement with Executive’s private attorney. Executive
    acknowledges that Executive has carefully read and understands
    the terms and provisions of this Agreement and that they are
    reasonable. Executive signs this Agreement voluntarily and
    accepts all obligations contained in this Agreement in exchange
    for the consideration to be given to Executive as outlined
    above, which Executive acknowledges is adequate and
    satisfactory, and which Executive further acknowledges Freddie
    Mac is not otherwise obligated to provide to Executive. Neither
    Freddie Mac nor its agents, representatives, directors, officers
    or employees have made any representations to

 

     

    Page 5 of 6

 

    Executive concerning the terms or effects of this Agreement,
    other than those contained in this Agreement.

 

	 	 	 
	
    /s/  Anthony
    S. Piszel

    

	
 
	

    Date: October 14, 2006

    

	

    Anthony S. Piszel

	
 
	
 

	
 

	

    FEDERAL HOME LOAN MORTGAGE CORPORATION

	
 
	
 
	
 

	

    By:
    /s/  Paul
    G. George

    

	
 
	

    Date: October 17, 2006

    

 

     

    Page 6 of 6

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