Document:

exv10w27

 

    Exhibit 10.27

 

    FIRST
    AMENDMENT

    TO THE

    FEDERAL HOME LOAN MORTGAGE CORPORATION

    DIRECTORS’ DEFERRED COMPENSATION PLAN

    (As Amended and Restated April 3, 1998)

 

    FIRST AMENDMENT TO THE FEDERAL HOME LOAN MORTGAGE CORPORATION
    DIRECTORS’ DEFERRED COMPENSATION PLAN (as amended and
    restated April 3, 1998) (the “Plan”) by the
    FEDERAL HOME LOAN MORTGAGE CORPORATION (the
    “Corporation”), a corporation organized and existing
    under the laws of the United States of America.

 

    W I T N E
    S S E T H:

 

    WHEREAS, the Plan was restated effective April 3,
    1998, and

 

    WHEREAS, the Corporation desires to amend the Plan to clarify
    and update the Plan, and

 

    WHEREAS, the appropriate officer of the Corporation has been
    duly authorized to execute this amendment.

 

    NOW THEREFORE the Plan is amended effective February 5,
    2009 as follows:

 

    1. Plan Section 2.2 is amended to read as follows:

 

    2.2.  Administrator. The Nominating and
    Governance Committee of the Board, or such other Board committee
    as may be designated by the Board to administer the Plan.
    Members of such committee, if otherwise eligible, shall be
    eligible to participate in the Plan, but no such member shall be
    entitled to make or participate in decisions solely or primarily
    with respect to his or her participation.

 

    2. The first, second and third sentences of Plan
    Section 6.1 are deleted, and replaced with the following:

 

    The Plan shall be administered by the Administrator. The
    Administrator shall be vested will full authority to make,
    administer and interpret such rules and regulations as it deems
    necessary to administer the Plan, including, but not limited to,
    the availability, timing and form of, deferral elections under
    Article III.

 

    IN WITNESS WHEREOF, the Corporation has caused this FIRST
    AMENDMENT TO THE FEDERAL HOME LOAN MORTGAGE CORPORATION
    DIRECTORS’ DEFERRED COMPENSATION PLAN (as amended and
    restated April 3, 1998) to be executed by its duly
    authorized officer, this 18 day of February, 2009.

 

	 	 	 	 	 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
    FEDERAL HOME LOAN MORTGAGE CORPORATION

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
    By:
	
 
	
    /s/  Robert
    E. Bostrom

	
 
	
 
	
 
	
 
	
    

	
 
	
 
	
 
	
 
	
    Robert E. Bostrom

	
 
	
 
	
 
	
 
	
    Executive Vice President — General Counsel and
    Corporate Secretary

    ATTEST:

 

 

    /s/  Mollie
    D. Roy

    Mollie D. Roy

    Assistant Secretaryexv10w30

 

    Exhibit 10.30

 

    OFFICER
    SHORT-TERM INCENTIVE PROGRAM

 

    Parameters
    Document

    February 2009

 

	 	 	 	 	 	 	 
	
    Objective
	
 
	
    The Officer Short-Term Incentive Program is intended to align
    executive compensation with the performance of the corporation.
    The program provides cash awards to eligible officers based on a
    combination of corporate, division, and individual performance
    during the performance year. Bonus pool funding and the amount
    available for distribution are based on Freddie Mac’s
    performance against annual Corporate Scorecard objectives and
    other relevant unplanned accomplishments. The allocation of
    these funds to divisions is determined at the Chief Executive
    Officer’s discretion, and will take into account the
    division’s performance. The allocation of an award to
    individual officers will take into account performance against
    their objectives and available funds.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
    Performance Period
	
 
	
    The performance period runs from January 1 —
    December 31.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
    General Eligibility
	
 
	
    Senior Vice Presidents, Executive Vice Presidents, and the Chief
    Executive Officer are not eligible to participate in this
    program until such time as Freddie Mac has additional guidance
    from the Federal Housing Finance Agency on the application of
    recent announcements by the U.S. Department of Treasury, as well
    the American Recovery and Reinvestment Act’s restrictions
    on executive compensation

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
     
	
 
	
    A Vice President is eligible to participate in the program if:

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
     
	
 
	
    •
	
 
	
    As of the last business day of the performance period, s/he is
    classified by Freddie Mac (in its sole discretion) as an active,
    full-time or part-time officer, or an officer on short-term
    disability and/or approved leaves of absence. Individuals who
    are in terminated status (for whatever reason) as of the last
    business day of the performance period are not eligible to
    participate in the bonus program for that year unless their
    participation is authorized by the Chief Executive Officer (the
    “CEO”), the President and Chief Operating Officer (the
    “President”), or the Executive Vice President-Human
    Resources and Corporate Services (the “EVP —
    HR&CS”).1

    Individuals on terminated status include those on severance,
    retirement and long-term disability.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

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

		
	    1 	
    The purpose of this change is to provide the CEO, the President
    and the EVP — HR&CS the flexibility to negotiate
    bonus payouts upon termination; primarily in the case of
    terminations due to corporate reorganizations.

 

	 	 	 	 	 	 	 
	
 
	
 
	
     
	
 
	
 
	
 
	
    period, but before the bonus payout date, is eligible to
    participate in the program; and, provided further, that
    an officer is eligible to participate in the program if his/her
    participation is authorized by the CEO, the President or the
    EVP — HR&CS.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

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

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
     
	
 
	
    Individualized eligibility criteria may be negotiated with
    officers and is subject to appropriate approval.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
    Bonus Targets
	
 
	
    Each year, a bonus target is developed for and communicated to
    each eligible officer. The targets may be expressed as a percent
    of base salary or a fixed dollar amount. Bonus targets are
    subject to appropriate approvals.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
    Discretionary Nature of

    the Program
	
 
	
    Freddie Mac’s officer short-term incentive program is
    discretionary — a payout under the program is not
    guaranteed and is only payable if the appropriate authority
    decides to award the bonus. Key performance areas are defined in
    the Corporate Scorecard and represent corporate performance
    goals for the year. The Compensation Committee approves the
    Corporate Scorecard applicable to the performance period.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
     
	
 
	
    The program is funded based upon the Company’s performance
    against an agreed upon performance measure. The amount of
    funding available for distribution is based on an evaluation of
    the Company’s performance against the Corporate Scorecard
    objectives and other items, as the Compensation Committee deems
    appropriate.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
     
	
 
	
    The Corporate Scorecard Objectives are generally communicated to
    eligible officers generally in the first quarter of the
    Performance Year.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
    Bonus Pool Funding
	
 
	
    Established and approved by the Compensation Committee at the
    time the Scorecard is approved and is a function of the
    aggregate annual incentive targets of the participants and any
    guaranteed minimum bonus commitments.

    

    2

 

	 	 	 	 	 	 	 
	
     
	
 
	
 
	
 
	
 
	
 
	
 

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

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

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

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

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
    Payout
	
 
	
    Vice Presidents: Generally, bonuses are recommended by the
    division heads, approved by an Authorized Officer and paid no
    later than March in the year following the performance year.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
    Form of Payout
	
 
	
    The award will be paid in cash subject to normal withholding.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
    General
	
 
	
    Bonus amounts paid pursuant to this arrangement are considered
    compensation for purposes of the benefits accrued under the
    tax-qualified
    Thrift/401(k)
    Savings Plan, the Pension Plan and the non-qualified
    Supplemental Executive Retirement Plan. These amounts are also
    considered compensation for deferrals made under the Executive
    Deferred Compensation Plan.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
     
	
 
	
    Nothing in this program is intended to create a contract to
    employ any employee for any particular term or period of time or
    otherwise abrogate Freddie Mac’s right to terminate an
    employee at any time for any reason.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
     
	
 
	
    Freddie Mac reserves the right to terminate this program or
    modify its provisions at any time for any reason at the
    corporation’s sole discretion.

	
     
	
 
	
 
	
 
	
 
	
 
	
 

	
     
	
 
	
    The terms of this plan are subject to and shall be construed in
    accordance with applicable law and any regulation, guidance or
    interpretation issued by the Federal Housing Finance Agency or
    the U.S. Department of Treasury.

    

    3

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