Document:

Exhibit

Exhibit 10.18

EXECUTIVE MANAGEMENT COMPENSATION PROGRAM
Recapture and Forfeiture Agreement
	
		
	                           Purpose
	

A Covered Officer’s agreement to this Recapture and Forfeiture Agreement (“Recapture Agreement” or “Agreement”) is a condition of their participation in the Executive Management Compensation and any successor compensation programs for Covered Officers (collectively, the “EMCP”).

This Agreement sets forth terms and conditions pursuant to which the Covered Officer’s compensation under the EMCP and any successors thereto may be recaptured and/or forfeited.

	                             Effective Date
	

This Agreement applies to Deferred Salary (as defined in the EMCP) earned, paid or to be paid pursuant to the terms of the EMCP and any determination of a Forfeiture Event (as defined herein) that occurs on or after the date of your promotion or hire into a Covered Officer position.

	                   Forfeiture Events and Compensation Subject to
Recapture or
Forfeiture
	

After providing the requisite Notice, the Freddie Mac Board of Directors, in the good faith exercise of its sole discretion, determines that any of the following events (each a “Forfeiture Event”) have occurred:

1.    Forfeiture Event: The Covered Officer has earned or obtained the legally binding right to a payment of Deferred Salary based on materially inaccurate financial statements (including without limitation, statements of earnings, revenues, or gains) or any other materially inaccurate performance measure.

Compensation Subject to Recapture and/or Forfeiture: Any Deferred Salary in excess of the amounts that the Board determines would likely have been otherwise earned by the Covered Officer using accurate measures during the two years prior to the Forfeiture Event.

2.      Forfeiture Events:

(i) The Covered Officer’s employment with Freddie Mac is terminated because the Covered Officer is either convicted of, or pleads guilty or nolo contendere to, a felony;

(ii) Subsequent to termination of employment:

a.  the Covered Officer is convicted of, or pleads guilty or nolo contendere to, a felony, based on conduct occurring prior to termination; and,

b.  within one year of such conviction or plea, the Board determines in good faith that such conduct is materially harmful to the business or reputation of Freddie Mac.

(iii) The Covered Officer‘s employment is terminated because, or within two years of the Covered Officer’s termination of employment, the Board determines in good faith that, the Covered Officer engaged in any willful misconduct in the performance of his or her duties with Freddie Mac that is materially harmful to the business or reputation of Freddie Mac (for such purposes, “willful” shall mean any act or omission by the Covered Officer that was done in bad faith or in the absence of a reasonable belief that the same was in the best interests
of Freddie Mac).

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EXECUTIVE MANAGEMENT COMPENSATION PROGRAM
Recapture and Forfeiture Agreement
	
		
	 
	

Compensation Subject to Recapture and/of Forfeiture: Any Deferred Salary earned by the Covered Officer during the two years prior to the date that the Covered Officer is terminated, any Deferred Salary that is scheduled to be paid to the Covered Officer within two years after termination of employment and any other cash payment made or to be made to the Covered Officer as consideration for any release of claims agreement between the Covered Officer and Freddie Mac.

3.    Forfeiture Event: The Covered Officer’s employment with Freddie Mac is terminated because, in carrying out his or her duties, the Covered Officer engages in conduct that constitutes gross neglect or gross misconduct that is materially harmful to Freddie Mac, or within two years after the Covered Officer’s termination of employment the Board determines in good faith that the Covered Officer, prior to his or her termination of employment, engaged in conduct that constitutes gross neglect or gross misconduct  and that such actions resulted in material harm to Freddie Mac.

Compensation Subject to Recapture and/or Forfeiture:  Any Deferred Salary paid to the Covered Officer at the time of termination or subsequent to the date of termination, including any cash payment made to the Covered Officer as consideration for any release of claims agreement between the Covered Officer and Freddie Mac.

4.  Forfeiture Event: The Covered Officer has violated a post-termination non-competition covenant set forth in the Restrictive Covenant and Confidentiality Agreement between the Covered Officer and Freddie Mac in effect when a payment of Deferred Salary is scheduled to be made.

Compensation Subject to Recapture and/or Forfeiture: 50% of the Deferred Salary paid to the Covered Officer during the twelve months immediately preceding the violation and 100% of all Deferred Salary unpaid at the time of such violation.

The recapture of compensation constitutes a forfeiture of such compensation and the Covered Officer’s immediate repayment of the same to Freddie Mac shall occur notwithstanding the terms of any applicable plan, agreement or award to the contrary.

	                          Dollar Amount to  be Recaptured   and/or Forfeited
	

After providing the requisite Notice, the Board of Directors in the good faith exercise of its sole discretion shall determine the appropriate dollar amount of compensation to be recaptured from and/or forfeited by the Covered Officer, if any, which is intended to be the gross amount of compensation in excess of what Freddie Mac would have paid the Covered Officer had Freddie Mac taken the Forfeiture Event into consideration at the time such compensation decision was made.

Neither the Covered Officer’s Base Salary nor the Covered Officer’s assets acquired either prior to employment by Freddie Mac or directly from sources other than Freddie Mac shall be subject to recapture or forfeiture pursuant to the terms of this Agreement.

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EXECUTIVE MANAGEMENT COMPENSATION PROGRAM
Recapture and Forfeiture Agreement
	
		
	

Notice
Requirements
	                                                                                                                                                                                                                                               A determination as to the occurrence of a Forfeiture Event and the dollar       amount of compensation, if any, to be recaptured and/or forfeited pursuant to            this Agreement shall be made only after first providing to the Covered Officer:

(i)   reasonable advance notice setting forth Freddie Mac’s intention to make such a determination;

(ii)  where remedial action is appropriate and feasible, a reasonable opportunity for the Covered Officer to take such action;

(iii)  an opportunity for the Covered Officer, together with his or her counsel, to be heard before the Board; and

(iv) a copy of a resolution duly adopted by a majority of the entire Board     at a meeting of the Board called and held for such purpose, making      the requisite determination.

	

Reservation of
Rights
	

Nothing in this Recapture Agreement is intended or shall be construed to abrogate the “at will” employment relationship between the Covered Officer and Freddie Mac, and both the Covered Officer and Freddie Mac retain the right to terminate the employment relationship at any time for any lawful reason with or without notice.

Any dispute between the Covered Officer and Freddie Mac concerning the occurrence of a Forfeiture Event or the dollar amount of compensation subject to recapture and/or forfeiture shall be determined exclusively in accordance with the substantive law of the state in which the Covered Officer’s primary place of employment with Freddie Mac is located, excluding the provisions of the laws of such state concerning choice-of-law that would result in the application of the laws of any state other than such state being applied. The Covered Officer agrees that the federal courts with jurisdiction for the state in which his or her primary place of employment is located shall be the venue for and have exclusive jurisdiction over any such dispute.

The terms and conditions of this Recapture Agreement and any successors thereto are not intended to negate and do not supersede the provisions of any applicable law, regulation or regulatory guidance, including the authority of the Federal Housing Finance Agency (or any federal agency acting as Freddie Mac’s regulator or Conservator), pertaining to the payment or non-payment of any form of compensation paid or to be paid to the Covered Officer. The Federal Housing Finance Agency retains its authority to modify or terminate any of Freddie Mac’s compensation plans or programs (including the EMCP and any successors thereto), and with respect to any compensation paid or to be paid to you during or after your employment pursuant to the EMCP and any successors thereto, to withhold, escrow or prohibit such compensation, without giving rise to liability on the part of Freddie Mac.

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EXECUTIVE MANAGEMENT COMPENSATION PROGRAM
Recapture and Forfeiture Agreement
	
		
	Your Review of
This Agreement
	

During your review of and prior to your agreement to this Recapture Agreement, Freddie Mac expects that you have had the opportunity to consult and receive assistance from appropriate advisors, including legal, tax, and financial
advisors.

By signing below, I acknowledge that I understand and voluntarily agree to the terms of this Recapture
Agreement.

_______________________________________________                                              __________________________________
Signature                                                                                                                   Date

_______________________________________________
Printed Name

_______________________________________________
Officer Title

Page 4 of 4Exhibit

Exhibit 10.28

	
		
	Date
	To

	April 6, 2015
	Anil Hinduja

	 
	 

	From
	 

	Donald H. Layton
	 

	 
	 

	Subject

	Your Compensation as Executive Vice President and Chief Enterprise Risk Officer

On behalf of Freddie Mac’s Board of Directors (the “Board”), this memorandum sets forth Freddie Mac’s agreement to employ you as its Executive Vice President and Chief Enterprise Risk Officer, effective no later than 180 days from the day you resign your current position, pursuant to the terms and conditions set forth herein.  The terms and conditions set forth herein have been approved by the Board and the Federal Housing Finance Agency (“FHFA”) and supersede any previous communications you may have had with Freddie Mac or FHFA.  

As Freddie Mac’s Executive Vice President and Chief Enterprise Risk Officer, you shall report to me, Freddie Mac’s Chief Executive Officer.  During your employment, you agree to devote substantially all of your time, attention, and energies to Freddie Mac’s business, and to not be engaged in any other business activity unless permitted under our Outside Activities and Family Member Activities policy.  This restriction shall not prevent you from devoting a reasonable amount of time to charitable or public interest activities or from making passive investments of your assets in such form or manner as you desire, consistent with Freddie Mac’s Personal Securities Investment policy.  

The following outlines the terms of your employment with us, including your compensation and benefits.  Congratulations and we look forward to you joining the Freddie Mac team!

		
	I.
	Compensation

Your compensation is governed by the Executive Management Compensation Program (“EMCP”), which was designed by FHFA to reflect the principles established for companies receiving federal assistance.  To participate in the EMCP, you must agree to the terms of the EMCP Program Document and a Recapture and Forfeiture Agreement, both of which are enclosed.  The EMCP Program Document outlines the terms and conditions of our compensation program for senior executives, while the Recapture and Forfeiture Agreement describes the circumstances under which certain compensation is subject to forfeiture and repayment.  In the event that you do not agree to the terms of either or both documents, you will be paid only Base Salary.

Compensation Terms - Anil Hinduja - April 6, 2015
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Your target total direct compensation (“Target TDC”) will be $2,250,000, which will be pro-rated in the first calendar year of employment based on your agreed upon hire date.  
Your Target TDC will consist of two components - Base Salary and Deferred Salary - which     are summarized below.

Base Salary - Base Salary is paid in cash.  The annualized amount of your Base Salary is $500,000.  

Deferred Salary - Deferred Salary earned in each quarter is paid in cash in the last pay period of the corresponding quarter of the following calendar year.  The annualized amount of your Deferred Salary is $1,750,000 and is comprised of the following two components:

		
	•
	At-Risk Deferred Salary - This portion of your Deferred Salary is equal to thirty percent (30%) of your Target TDC, or $675,000, up to half of which may be reduced based on the company’s performance against objectives established by FHFA and up to half of which may be reduced based on performance against objectives established by Freddie Mac and your individual performance.

		
	•
	Fixed Deferred Salary - This portion of your Deferred Salary is equal to your Target TDC less your Base Salary and At-Risk Deferred Salary, and is equal to $1,075,000.

Cash Award - In consideration of your accepting this offer and beginning employment with Freddie Mac, you will receive a cash award in the amount of $1,200,000.  The cash award is not considered “compensation” for purposes of our tax qualified Thrift/401(k) Savings Plan and our non-qualified Supplemental Executive Retirement Plan and will be earned and paid as follows:

		
	•
	First Installment:      $350,000 on the same date on which you receive your first 

payment of Base Salary
		
	•
	Second Installment:       $400,000 in the first pay period of March 2016 

		
	•
	Third Installment:     $300,000 in the first pay period of March 2017

		
	•
	Fourth Installment:      $150,000 in the first pay period of March 2018

The amount of the Second Installment will be increased if your current employer imposes a period of “garden leave.”  The amount of the increase will be based on the duration of the garden leave, as follows.
		
	•
	90 Days of Garden Leave:   $150,000

		
	•
	120 Days of Garden Leave: $262,500

		
	•
	150 Days of Garden Leave: $375,000

		
	•
	180 Days of Garden Leave: $450,000

In the event your employment terminates, any unpaid installments of the Cash Award will be paid unless your employment terminates due to a “Termination Event,” which shall mean:
		
	•
	You voluntarily resign employment; or,

		
	•
	We terminate your employment due to the occurrence of any of the Forfeiture Events described in the Recapture and Forfeiture Agreement.

Compensation Terms - Anil Hinduja - April 6, 2015
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If your employment terminates due to a Termination event, unpaid installments will be forfeited and any installment paid within one year of the Termination Event shall be subject to  repayment.  
		
	II.
	Benefits

You will be eligible to participate in all employee benefit plans offered to Freddie Mac’s senior executive officers (as may be modified or terminated from time to time by Freddie Mac in its  sole discretion) pursuant to the terms set forth in the applicable plan.  In summary, our current benefit plans consist of the following:

		
	•
	Healthcare Coverage - We offer a competitive healthcare program that provides medical, dental and vision coverage for you and your eligible dependents with several options from which to choose. 

		
	•
	Income Protection - We provide short- and long-term disability income protection, life insurance, accidental death and personal loss insurance, and business travel accident insurance.

		
	•
	Vacation - As an officer, you will accrue 20 days of vacation annually.  You begin accruing vacation starting with your first full pay period.  Beginning in your second calendar year of employment you have the option to purchase up to five (5) additional days of vacation.

		
	•
	Thrift/401(k) Savings Plan - You will be able to contribute to our Thrift/401(k) Savings Plan on a pre-tax and/or after-tax basis.  Freddie Mac will begin matching a portion of your contributions after one year of service at up to six percent of pay.  This plan also includes an annual company contribution.  This contribution is in addition to the matching contribution.

		
	•
	Supplemental Executive Retirement Plan (SERP) - The SERP is an unfunded nonqualified plan for officers intended to make up for employer-provided contributions under the Thrift/401(k) Savings Plan that are capped due to Internal Revenue Code limitations. 

Under separate cover, we are sending details of our employee benefit plans.  As a new employee, you may select the benefit plans that best meet your needs by logging on to  Fidelity’s NetBenefits website at http://netbenefits.fidelity.com.  Shortly after your start date, you will receive an email from the Freddie Mac Benefits Center instructing you to log on to NetBenefits to make your elections.  

Note that you will not receive any information at your home address.  Your enrollment window is open for 30 days following your hire date.  During orientation, our benefit plans and information about enrollment will be explained in greater detail.  Please visit our new employee website, http://www.freddiemac.com/careers/newemployee/, for information about working at Freddie Mac.

Compensation Terms - Anil Hinduja - April 6, 2015
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	III.
	Restrictive Covenant and Confidentiality Agreement

The terms of your compensation provided in this letter are also contingent upon your agreement   to be bound by the terms of the enclosed Restrictive Covenant and Confidentiality Agreement, which you must sign and return together with a signed copy of this letter.

		
	IV.
	FHFA’s Review and Approval Authority

The terms and conditions of your compensation have been reviewed and approved by FHFA in consultation with Treasury, as required under the terms of the company’s Preferred Stock Agreement. Notwithstanding such approval and any provision of this letter, you acknowledge and understand that any compensation paid or to be paid during or after your employment remains subject to any withholding, escrow or prohibition consistent with FHFA’s authority pursuant to the Federal Home Loan Corporation Act, as amended, or the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended.

		
	V.
	  Reservations of Rights:

This letter is not intended, nor shall it be interpreted, to constitute a contract of employment for  a specified duration.  Your employment is at-will and both you and Freddie Mac retain the discretion to terminate the employment relationship at any time for any lawful reason with or without notice.

This offer of employment is contingent upon Freddie Mac’s satisfaction in its sole discretion with your references and the results of your background checks and drug test.

=====================

During the course of your review of this memorandum, Freddie Mac expects that you have had the opportunity to consult and receive assistance from appropriate advisors, including legal, tax, and financial advisors.

This memorandum shall be construed, and the rights and obligations herein 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.

Compensation Terms - Anil Hinduja - April 6, 2015
Page 5 of 5 

		
	VI.
	Return of Signed Documents:

Please confirm that the terms and conditions in this letter conform to your understanding by returning a signed copy of this letter as well as signed copies of the EMCP, the Recapture and Forfeiture Agreement and the Restrictive Covenant and Confidentiality Agreement.

/s/ Donald H. Layton__________________            April 6, 2015____
Donald H. Layton                            Date
Chief Executive Officer

I agree to the terms of this Agreement. 

/s/ Anil Hinduja______________________            April 7, 2015____
Anil Hinduja                                          Date

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