Document:

Exhibit 10.14

 

CPS 2006 LONG-TERM EQUITY INCENTIVE PLAN

(as amended effective April 27, 2016)

 

PART I - PURPOSE,
ADMINISTRATION AND RESERVATION OF SHARES

 

SECTION 1.        Purpose
of the Plan. The purposes of this Plan are (a) to attract and retain the most talented Employees, officers and Directors
available, and (b) to promote the growth and success of the Company’s business, (i) by aligning the long-term interests
of Employees, officers and Directors with those of the shareholders by providing an opportunity to acquire an interest in the Company
and (ii) by providing both rewards for exceptional performance and long term incentives for future contributions to the success
of the Company and its Subsidiaries.

 

The Plan permits the
grant of Incentive Stock Options, Nonqualified Stock Options, Restricted Stock, Restricted Stock Units, or SARs, at the discretion
of the Committee and as reflected in the terms of the Award Agreement. Each Award will be subject to conditions specified in the
Plan, such as continued employment or satisfaction of performance criteria.

 

This Plan will serve
as a framework for the Committee to establish sub-plans or procedures governing the grants to employees, officers, directors and
consultants. The awards granted under the Former Plan shall continue to be administered under the Former Plan until such time as
those options are exercised, expire or become unexercisable for any reason.

 

SECTION 2.        Definitions. As
used herein, the following definitions shall apply:

 

(a) “Active
Status” shall mean (i) for employees, the absence of any interruption or termination of service as an employee,
(ii) for Directors, that the Director has not been removed from the Board for cause (as determined by the Company’s
shareholders), and (iii) for Consultants, the absence of any interruption, expiration, or termination of such person’s
consulting or advisory relationship with the Company or any Subsidiary or the occurrence of any termination event as set forth
in such person’s Award Agreement. Active Status shall not be considered interrupted (A) for an employee in the case
of sick leave, maternity leave, infant care leave, medical emergency leave, military leave, or any other leave of absence properly
taken in accordance with the policies of the Company or any applicable Subsidiary as may be in effect from time to time, and (B) for
a Consultant, in the case of any temporary interruption in such person’s availability to provide services to the Company
or any Subsidiary which has been granted in writing by an authorized officer of the Company. Whenever a mandatory severance period
applies under applicable law with respect to a termination of service as an employee, Active Status shall be considered terminated
upon such Employee’s receipt of notice of termination in whatever form prescribed by applicable law.

 

(b) “Award” shall
mean any award or benefits granted under the Plan, including Options, Restricted Stock, Restricted Stock Units, and SARs.

 

(c) “Award
Agreement” shall mean a written or electronic agreement between the Company and the Participant setting forth the
terms of the Award.

 

(d) “Beneficial
Ownership” shall have the meaning set forth in Rule 13d-3 promulgated under the Exchange Act.

 

(e) “Board” shall
mean the Board of Directors of the Company.

 

(f) “Change
of Control” shall mean the first day that any one or more of the following conditions shall have been satisfied:

 

(i) the sale,
liquidation or other disposition of all or substantially all of the Company’s assets in one or a series of related transactions;

 

(ii) an acquisition
(other than directly from the Company) of any outstanding voting securities by any person, after which such person (as the term
is used for purposes of Section 13(d) or 14(d) of the Exchange Act) has Beneficial Ownership of twenty-five percent (25%)
or more of the then outstanding voting securities of the Company, other than a Board approved transaction;

 

(iii) during any
36-consecutive month period, the individuals who, at the beginning of such period, constitute the Board (“Incumbent Directors”)
cease for any reason other than death to constitute at least a majority of the members of the Board; provided however that except
as set forth in this Section 2(f)(iii), an individual who becomes a member of the Board subsequent to the beginning of the
36-month period, shall be deemed to have satisfied such 36-month requirement and shall be deemed an Incumbent Director if such
Director was elected by or on the recommendation of or with the approval of at least two-thirds of the Directors who then qualified
as Incumbent Directors either actually (because they were Directors at the beginning of such period) or by operation of the provisions
of this section; if any such individual initially assumes office as a result of or in connection with either an actual or threatened
solicitation with respect to the election of Directors (as such terms are used in Rule 14a-12(c) of Regulation 14A promulgated
under the Exchange Act) or other actual or threatened solicitations of proxies or consents by or on behalf of a person other than
the Board, then such individual shall not be considered an Incumbent Director; or

  

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(iv) a merger,
consolidation or reorganization of the Company, as a result of which the shareholders of the Company immediately prior to such
merger, consolidation or reorganization own directly or indirectly immediately following such merger, consolidation or reorganization
less than fifty percent (50%) of the combined voting power of the outstanding voting securities of the entity resulting from such
merger, consolidation or reorganization.

 

(g) “Code” shall
mean the Internal Revenue Code of 1986, as amended.

 

(h) “Committee” shall
mean the Compensation Committee appointed by the Board.

 

(i) “Common
Stock” shall mean the common stock of the Company, no par value per share.

 

(j) “Company” shall
mean CPS, a California corporation, and any successor thereto.

 

(k) “Consultant” shall
mean any person, except an employee, engaged by the Company or any Subsidiary of the Company, to render personal services to such
entity, including as an advisor, pursuant to the terms of a written agreement.

 

(l) “Director” shall
mean a member of the Board.

 

(m) “Disability” shall
mean (i) in the case of a Participant whose employment with the Company or a Subsidiary is subject to the terms of an employment
or consulting agreement that includes a definition of “Disability” as used in this Plan shall have the meaning set
forth in such employment or consulting agreement during the period that such employment or consulting agreement remains in effect;
and (ii) in all other cases, the term “Disability” as used in this Plan shall have the same meaning as set forth
under the Company’s long-term disability plan applicable to the Participant as may be amended from time to time, and in the
event the Company does not maintain any such plan with respect to a Participant, a physical or mental condition resulting from
bodily injury, disease or mental disorder which renders the Participant incapable of continuing his or her usual and customary
employment with the Company or a Subsidiary, as the case may be, for a period of not less than 120 days or such other period
as may be required by applicable law.

 

(n) “Effective
Date” shall mean June 15, 2006, the date on which the Company’s shareholders first approved this Plan in accordance
with applicable Nasdaq rules.

 

(o) “Employee” shall
mean any person, including an officer, who is a common law employee of, receives remuneration for personal services to, is reflected
on the official human resources database as an employee of, and is on the payroll of the Company or any Subsidiary of the Company.
A person is on the payroll if he or she is paid from or at the direction of the payroll department of the Company, or any Subsidiary
of the Company. Persons providing services to the Company, or to any Subsidiary of the Company, pursuant to an agreement with a
staff leasing organization, temporary workers engaged through or employed by temporary or leasing agencies, and workers who hold
themselves out to the Company, or a Subsidiary to which they are providing services as being independent contractors, or as being
employed by or engaged through another company while providing the services, and persons covered by a collective bargaining agreement
(unless the collective bargaining agreement applicable to the person specifically provides for participation in this Plan) are
not employees for purposes of this Plan and do not and cannot participate in this Plan, whether or not such persons are, or may
be reclassified by the courts, the Internal Revenue Service, the U.S. Department of Labor, or other person or entity as, common
law employees of the Company, or any Subsidiary, either solely or jointly with another person or entity.

 

(p) “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(q) “Executive
Officers” shall mean the officers of the Company as such term is defined in Rule 16a-1 under the Exchange Act.

 

(r) “Fair
Market Value” shall mean the closing price per share of the Common Stock on Nasdaq as to the date specified (or
the previous trading day if the date specified is a day on which no trading occurred), or if Nasdaq shall cease to be the principal
exchange or quotation system upon which the shares of Common Stock are listed or quoted, then such exchange or quotation system
as the Company elects to list or quote its shares of Common Stock and that the Committee designates as the Company’s principal
exchange or quotation system.

 

(s) “FAS 123” shall
mean Statements of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation”, as promulgated
by the Financial Accounting Standards Board.

 

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(t) “FLSA” shall
mean the Fair Labor Standards Act of 1938, as amended.

 

(u) “Former
Plan” shall mean the CPS 1997 Long-Term Incentive Plan, as amended.

 

(v) “Incentive
Stock Option” shall mean any Option intended to qualify as an incentive stock option within the meaning of Section 422
of the Code. 

 

(w) “Independent
Director” shall mean a Director who: (1) meets the independence requirements of Nasdaq, or if Nasdaq shall
cease to be the principal exchange or quotation system upon which the shares of Common Stock are listed or quoted, then such exchange
or quotation system as the Company elects to list or quote its shares of Common Stock and that the Committee designates as the
Company’s principal exchange or quotation system; (2) qualifies as an “outside director” under Section 162(m)
of the Code; and (3) satisfies independence criteria under any other applicable laws or regulations relating to the issuance
of Shares to Employees.

 

(x) “Maximum
Annual Participant Award” shall have the meaning set forth in Section 6(b).

 

(y) “Misconduct” shall
mean any of the following; provided, however, that with respect to Non-Employee Directors “Misconduct” shall mean
subsection (viii) only:

 

(i) any
material breach of an agreement between the Participant and the Company or any Subsidiary which, if curable, has not been cured
within twenty (20) days after the Participant has been given written notice of the need to cure such breach, or which breach,
if previously cured, recurs;

 

(ii) willful
unauthorized use or disclosure of confidential information or trade secrets of the Company or any Subsidiary by the Participant;

 

(iii) the
Participant’s continued willful and intentional failure to satisfactorily perform Participant’s essential responsibilities,
provided that the Participant has been given at least thirty (30) days’ written notice of the need to cure the failure
and cure has not been effected within that time period, or which failure, if previously cured, recurs;

 

(iv) material
failure of the Participant to comply with rules, policies or procedures of the Company or any Subsidiary as they may be amended
from time to time, provided that the Participant has been given at least thirty (30) days’ written notice of the need
to cure the failure, if such failure is curable, and cure has not been effected within that time period, or which failure, if previously
cured, recurs;

 

(v) Participant’s
dishonesty, fraud or gross negligence related to the business or property of the Company or any Subsidiary;

 

(vi) personal
conduct that is materially detrimental to the business of the Company or any Subsidiary;

 

(vii) conviction
of or plea of nolo contendere to a felony; or

 

(viii) in
the case of Non-Employee Directors, the removal from the Board for cause (as determined by the Company’s shareholders).

 

(z) “Nasdaq” shall
mean The Nasdaq Stock Market, Inc.

 

(aa) “Non-Employee
Director” shall mean a Director who is not an employee.

 

(bb) “Nonqualified
Stock Option” shall mean an Option that does not qualify or is not intended to qualify as an Incentive Stock Option.

 

(cc) “Option” shall
mean a stock option granted pursuant to Section 10 of the Plan.

 

(dd) “Optionee” shall
mean a Participant who has been granted an Option.

 

(ee) “Parent” shall
mean a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

(ff) “Participant” shall
mean an employee, Director or Consultant granted an Award.

 

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(gg) “Performance
Criteria” shall have the meaning set forth in Section 11(b).

 

(hh) “Plan” shall
mean this CPS 2006 Long-Term Equity Incentive Plan, including any amendments thereto.

 

(ii) “Reprice” shall
mean the adjustment or amendment of the exercise price of Options or SARs previously awarded whether through amendment, cancellation,
replacement of grants or any other means. 

 

(jj) “Resignation
(or Resign) for Good Reason” shall mean any voluntary termination by written resignation of the Active Status
of any employee after a Change of Control because of: (1) a material reduction in the employee’s authority,
responsibilities or scope of employment; (2) an assignment of duties to the Employee inconsistent with the employee’s
role at the Company (including its Subsidiaries) prior to the Change of Control, (3) a reduction in the employee’s
base salary or total incentive compensation; (4) a material reduction in the Employee’s benefits unless such
reduction applies to all employees of comparable rank; or (5) the relocation of the employee’s primary work
location more than fifty (50) miles from the employee’s primary work location prior to the Change of Control;
provided that the employee’s written notice of voluntary resignation must be tendered within one (1) year after
the Change of Control, and shall specify which of the events described in (1) through (5) resulted in the
resignation.

 

(kk) “Restricted
Stock” shall mean a grant of Shares pursuant to Section 11 of the Plan.

 

(ll) “Restricted
Stock Units” shall mean a grant of the right to receive Shares in the future or their cash equivalent (or both)
pursuant to Section 11 of the Plan.

 

(mm) “Retirement” shall
mean, (i) with respect to any employee, voluntary termination of employment after age 55 and at least ten (10)
years of credited service with the Company or any Subsidiary (but only during the time the Subsidiary was a Subsidiary), as
determined by the Committee in its sole discretion, and (ii) with respect to any Non-Employee Director, ceasing to be a
Director pursuant to election by the Company’s shareholders or by voluntary resignation with the approval of the
Board’s chair after having attained the age of 55 years and served continuously on the Board for at least six
years.

 

(nn) “SAR” shall
mean a stock appreciation right awarded pursuant to Section 12 of the Plan.

 

(oo) “SEC” shall
mean the Securities and Exchange Commission.

 

(pp) “Share” shall
mean one share of Common Stock, as adjusted in accordance with Section 5 of the Plan.

 

(qq) “Stand-Alone
SARs” shall have the meaning set forth in Section 12(c) of the Plan.

 

(rr) “Subcommittee” shall
have the meaning set forth in Section 3(d).

 

(ss) “Subsidiary” shall
mean (1) in the case of an Incentive Stock Option a “subsidiary corporation,” whether now or hereafter
existing, as defined in Section 424(f) of the Code, and (2) in the case of a Nonqualified Stock Option, Restricted
Stock, a Restricted Stock Unit or a SAR, in addition to a subsidiary corporation as defined in (1), (A) a limited
liability company, partnership or other entity in which the Company controls fifty percent (50%) or more of the voting power
or equity interests, or (B) an entity with respect to which the Company possesses the power, directly or indirectly, to
direct or cause the direction of the management and policies of that entity, whether through the Company’s ownership of
voting securities, by contract or otherwise.

 

(tt) “Tandem
SARs” shall have the meaning set forth in Section 12(b) of the Plan.

 

SECTION 3.       Administration
of the Plan.

 

(a) Authority. The
Plan shall be administered by the Committee. The Committee shall have full and exclusive power to administer the Plan on behalf
of the Board, subject to such terms and conditions as the Committee may prescribe. Notwithstanding anything herein to the contrary,
the Committee’s power to administer the Plan, and actions the Committee takes under the Plan, shall be limited by the provisions
set forth in the Committee’s charter, as such charter may be amended from time to time, and the further limitation that certain
actions may be subject to review and approval by either the full Board or a panel consisting of all of the Independent Directors
of the Company.

 

(b) Powers
of the Committee. Subject to the other provisions of this Plan, the Committee shall have the authority, in its discretion:

 

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(i) to grant Incentive
Stock Options, Nonqualified Stock Options, Restricted Stock, Restricted Stock Units, and SARs to Participants and to determine
the terms and conditions of such Awards, including the determination of the Fair Market Value of the Shares and the exercise price,
and to modify or amend each Award, with the consent of the Participant when required;

 

(ii) to determine
the Participants, to whom Awards, if any, will be granted hereunder, the timing of such Awards, and the number of Shares to be
represented by each Award;

 

(iii) to construe
and interpret the Plan and the Awards granted hereunder; 

 

(iv) to prescribe,
amend, and rescind rules and regulations relating to the Plan, including the form of Award Agreement, and manner of acceptance
of an Award, such as correcting a defect or supplying any omission, or reconciling any inconsistency so that the Plan or any Award
Agreement complies with applicable law, regulations and listing requirements and to avoid unanticipated consequences deemed by
the Committee to be inconsistent with the purposes of the Plan or any Award Agreement;

 

(v) to establish
performance criteria for Awards made pursuant to the Plan in accordance with a methodology established by the Committee, and to
determine whether performance goals have been attained;

 

(vi) to accelerate
or defer (with the consent of the Participant) the exercise or vested date of any Award;

 

(vii) to authorize
any person to execute on behalf of the Company any instrument required to effectuate the grant of an Award previously granted by
the Committee;

 

(viii) to establish
sub-plans, procedures or guidelines for the grant of Awards to Directors, Consultants and Employees working outside of the United
States; and

 

(ix) to make all
other determinations deemed necessary or advisable for the administration of the Plan;

 

Provided that, no
consent of a Participant is necessary under clauses (i) or (vi) if a modification, amendment, acceleration, or deferral,
in the reasonable judgment of the Committee confers a benefit on the Participant or is made pursuant to an adjustment in accordance
with Section 5.

 

(c) Effect
of Committee’s Decision. All decisions, determinations, and interpretations of the Committee shall be final and
binding on all Participants, the Company (including its Subsidiaries), any shareholder and all other persons.

 

(d) Delegation. Consistent
with the Committee’s charter, as such charter may be amended from time to time, the Committee may delegate (i) to
one or more separate committees consisting of members of the Committee or other Directors who are Independent Directors (any
such committee a “Subcommittee”), or (ii) to an Executive Officer of the Company, the ability to grant Awards and
take the other actions described in Section 3(b) with respect to Participants who are not Executive Officers, and such
actions shall be treated for all purposes as if taken by the Committee; provided that the grant of Awards shall be made in
accordance with parameters established by the Committee. Any action by any such Subcommittee or Executive Officer within the
scope of such delegation shall be deemed for all purposes to have been taken by the Committee.

 

(e) Administration. The
Committee may delegate the administration of the Plan to an officer or officers of the Company, and such administrator(s) may have
the authority to directly, or under their supervision, execute and distribute agreements or other documents evidencing or relating
to Awards granted by the Committee under this Plan, to maintain records relating to the grant, vesting, exercise, forfeiture or
expiration of Awards, to process or oversee the issuance of Shares upon the exercise, vesting and/or settlement of an Award, to
interpret the terms of Awards and to take such other actions as the Committee may specify. Any action by any such administrator
within the scope of its delegation shall be deemed for all purposes to have been taken by the Committee and references in this
Plan to the Committee shall include any such administrator, provided that the actions and interpretations of any such administrator
shall be subject to review and approval, disapproval or modification by the Committee.

 

SECTION 4.     Shares
Subject to the Plan.

 

(a) Reservation
of Shares. The shares of Common Stock reserved under this Plan will include reserved shares of Common Stock that are
not subject to a grant or as to which the option award granted has been forfeited under the Former Plan, and an additional
17,200,000 shares of Common Stock. The aggregate number of Shares available for issuance under the Plan will be reduced by one
Share for each Share delivered in settlement of any award of Restricted Stock, Restricted Stock Unit, or SAR and one Share
for each Share delivered in settlement of an Option. If an Award expires, is forfeited or becomes unexercisable for any
reason without having been exercised in full, the undelivered Shares which were subject thereto shall, unless the Plan shall
have been terminated, become available for future Awards under the Plan. Without limiting the foregoing, unless the Plan
shall have been terminated, Shares underlying an Award that has been exercised, either in part or in full, including any
Shares that would otherwise be issued to a Participant that are used to satisfy any withholding tax obligations that arise
with respect to any Award, shall become available for future Awards under the Plan except to the extent Shares were issued in
settlement of the Award. Shares available for issuance under the Plan shall be increased by any shares of Common Stock
subject to outstanding awards under the Former Plans on the date of any shareholder approval of the Plan that later cease to
be subject to such awards for any reason other than such awards having been exercised, subject to adjustment from time to
time as provided in Section 5, which shares of Common Stock shall, as of the date such shares cease to be subject to
such awards, cease to be available for grant and issuance under the Former Plans, but shall be available for issuance under
the Plan. The Shares may be authorized but unissued, or reacquired shares of Common Stock. The Company, during the term of
this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy
the requirements of the Plan.

 

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(b) Time of
Granting Awards. The date of grant of an Award shall, for all purposes, be the date on which the Company completes the
corporate action relating to the grant of such Award and all conditions to the grant have been satisfied, provided that conditions
to the exercise of an Award shall not defer the date of grant. Notice of a grant shall be given to each Participant to whom an
Award is so granted within a reasonable time after the determination has been made. 

 

(c) Securities
Law Compliance. Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and
the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without
limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated under either such Act,
and the requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted, and shall be
further subject to the approval of counsel for the Company with respect to such compliance.

 

(d) Substitutions
and Assumptions. The Board or the Committee shall have the right to substitute or assume Awards in connection with
mergers, reorganizations, separations, or other transactions to which Section 424(a) of the Code applies, provided such
substitutions and assumptions are permitted by Section 424 of the Code and the regulations promulgated thereunder. The number
of Shares reserved pursuant to Section 4(a) may be increased by the corresponding number of Awards assumed and, in the case
of a substitution, by the net increase in the number of Shares subject to Awards before and after the substitution.

 

SECTION 5.       Adjustments
to Shares Subject to the Plan. If any change is made to the Shares by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Shares as a class
without the Company’s receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and/or
class of securities issuable under the Plan, (ii) the number and/or class of securities and/or the price per Share
covered by outstanding Awards under the Plan and (iii) the Maximum Annual Participant Award. The Committee may also make
adjustments described in (i)-(iii) of the previous sentence in the event of any distribution of assets to shareholders other
than a normal cash dividend. In determining adjustments to be made under this Section 5, the Committee may take into
account such factors as it deems appropriate, including the restrictions of applicable law and the potential tax consequences
of an adjustment, and in light of such factors may make adjustments that are not uniform or proportionate among outstanding
Awards. Adjustments, if any, and any determinations or interpretations, including any determination of whether a distribution
is other than a normal cash dividend, made by the Committee shall be final, binding and conclusive. For purposes of this
Section 5, conversion of any convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration.”

 

Except as expressly
provided herein, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect,
and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Award.

 

PART II - TERMS
APPLICABLE TO ALL AWARDS

 

SECTION 6.        General
Eligibility.

 

(a) Awards. Awards
may be granted to Participants who are Employees, Directors or Consultants; provided however that Incentive Stock Options may only
be granted to Employees.

 

(b) Maximum
Annual Participant Award. The aggregate number of Shares with respect to which an Award or Awards may be granted to any
one Participant over the life of the Plan (the “Maximum Participant Award”) shall not exceed 3,750,000 shares of Common
Stock (increased, proportionately, in the event of any stock split or stock dividend with respect to the Shares). If an Option
is in tandem with a SAR, such that the exercise of the Option or SAR with respect to a Share cancels the tandem SAR or Option right,
respectively, with respect to each Share, the tandem Option and SAR rights with respect to each Share shall be counted as covering
but one Share for purposes of the Maximum Annual Participant Award.

 

(c) No Employment/
Service Rights. Nothing in the Plan shall confer upon any Participant the right to an Award or to continue in service
as an employee or Consultant for any period of specific duration, or interfere with or otherwise restrict in any way the rights
of the Company (or any Subsidiary employing or retaining such person), or of any Participant, which rights are hereby expressly
reserved by each, to terminate such person’s services at any time for any reason, with or without cause.

 

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SECTION 7.       Procedure
for Exercise of Awards; Rights as a Shareholder.

 

(a) Procedure. An
Award shall be exercised when written, electronic or verbal notice of exercise has been given to the Company, or the brokerage
firm or firms approved by the Company to facilitate exercises and sales under this Plan, in accordance with the terms of the Award
by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised has been
received by the Company or the brokerage firm or firms, as applicable. The notification to the brokerage firm shall be made in
accordance with procedures of such brokerage firm approved by the Company. Full payment may, as authorized by the Committee, consist
of any consideration and method of payment allowable under Section 7(b) of the Plan. The Company shall issue (or cause to
be issued) such share certificate promptly upon exercise of the Award. In the event that the exercise of an Award is treated in
part as the exercise of an Incentive Stock Option and in part as the exercise of a Nonqualified Stock Option pursuant to Section 10(a),
the Company shall issue a share certificate evidencing the Shares treated as acquired upon the exercise of an Incentive Stock Option
and a separate share certificate evidencing the Shares treated as acquired upon the exercise of a Nonqualified Stock Option, and
shall identify each such certificate accordingly in its share transfer records. No adjustment will be made for a dividend or other
right for which the record date is prior to the date the share certificate is issued, except as provided in Section 5 of the
Plan. 

 

(b) Method
of Payment. The consideration to be paid for any Shares to be issued upon exercise or other required settlement of
an Award, including the method of payment, shall be determined by the Committee at the time of settlement and which forms may
include: (i) with respect to an Option, a request that the Company or the designated brokerage firm conduct a cashless
exercise of the Option; (ii) cash; and (iii) tender of shares of Common Stock owned by the Participant in accordance
with rules established by the Committee from time to time. Shares used to pay the exercise price shall be valued at their
Fair Market Value on the exercise date. Payment of the aggregate exercise price by means of tendering previously-owned shares
of Common Stock shall not be permitted when the same may, in the reasonable opinion of the Company, cause the Company to
record a loss or expense as a result thereof.

 

(c) Withholding
Obligations. To the extent required by applicable federal, state, local or foreign law, the Committee may and/or a Participant
shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise with respect
to any Incentive Stock Option, Nonqualified Stock Option, SAR, Restricted Stock or Restricted Stock Units, or any sale of Shares.
The Company shall not be required to issue Shares or to recognize the disposition of such Shares until such obligations are satisfied.
These obligations may be satisfied by having the Company withhold a portion of the Shares that otherwise would be issued to a Participant
under such Award or by tendering Shares previously acquired by the Participant in accordance with rules established by the Committee
from time to time.

 

(d) Shareholder
Rights. Except as otherwise provided in this Plan, until the issuance (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company) of the share certificate evidencing such Shares, no right
to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Shares subject to the Award,
notwithstanding the exercise of the Award.

 

(e) Non-Transferability
of Awards. An Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in exchange for consideration,
except that an Award may be transferred by will or by the laws of descent or distribution and may be exercised, during the lifetime
of the Participant, only by the Participant; unless the Committee permits further transferability, on a general or specific basis,
in which case the Committee may impose conditions and limitations on any permitted transferability.

 

SECTION 8.       Expiration
of Awards.

 

(a) Expiration,
Termination or Forfeiture of Awards. Unless otherwise provided in the applicable Award Agreement or any severance agreement,
vested Awards granted under this Plan shall expire, terminate, or otherwise be forfeited as follows:

 

(i) three (3) months
after the date the Company delivers a notice of termination of a Participant’s Active Status, other than in circumstances
covered by (ii), (iii) or (iv) below;

 

(ii) immediately
upon termination of a Participant’s Active Status for Misconduct;

 

(iii) twelve (12) months
after the date on which a Participant other than a Non-Employee Director ceased performing services as a result of his or her total
and permanent Disability;

 

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(iv) twelve (12) months
months after the date on which the Participant ceased performing services as a result of Retirement, or after his death.

 

(b) Extension
of Term. Notwithstanding subsection (a) above, the Committee shall have the authority to extend the expiration
date of any outstanding Option, other than an Incentive Stock Option, or SAR in circumstances in which it deems such action to
be appropriate (provided that no such extension shall extend the term of an Option or SAR beyond the date on which the Option or
SAR would have expired if no termination of the Employee’s Active Status had occurred).

 

SECTION 9.       Effect
of Change of Control. Notwithstanding any other provision in the Plan to the contrary, the following provisions shall
apply unless otherwise provided in the most recently executed agreement between the Participant and the Company, or specifically
prohibited under applicable laws, or by the rules and regulations of any applicable governmental agencies or national securities
exchanges or quotation systems.

 

(a) Acceleration. Awards
of a Participant shall be Accelerated (as defined in Section 9(b) below) as follows:

 

(i) With respect
to Non-Employee Directors, upon the occurrence of a Change of Control;

 

(ii) With respect
to any employee, upon the occurrence of a Change of Control described in Section 2(f)(i);

 

(iii) With respect
to any employee who Resigns for Good Reason or whose Active Status is terminated within one year after a Change of Control described
in Section 2(f)(ii) or (iii);

 

(iv) With respect
to any employee, upon the occurrence of a Change of Control described in Section 2(f)(iv) in connection with which each Award
is not assumed or an equivalent award substituted by such successor entity or a parent or subsidiary of such successor entity; and 

 

(v) With
respect to any employee who Resigns for Good Reason or whose Active Status is terminated within one year after a Change of
Control described in Section 2(f)(iv) in connection with which each Award is assumed or an equivalent award substituted by
the successor entity or a parent or subsidiary of such successor entity.

 

(b) Definition. For
purposes of this Section 9, Awards of a Participant being “Accelerated” means, with respect to such Participant:

 

(i) any and all
Options and SARs shall become fully vested and immediately exercisable, and shall remain exercisable throughout their entire term;

 

(ii) any restriction
periods and restrictions imposed on Restricted Stock or Restricted Stock Units that are not performance-based shall lapse; and

 

(iii) the restrictions
and deferral limitations and other conditions applicable to any other Awards shall lapse, and such other Awards shall become free
of all restrictions, limitations or conditions and become fully vested and transferable to the full extent of the original grant.

 

PART III - SPECIFIC
TERMS APPLICABLE TO OPTIONS, STOCK AWARDS AND SARS

 

SECTION 10.       Grant,
Terms and Conditions of Options.

 

(a) Designation. Each
Option shall be designated in an Award Agreement as either an Incentive Stock Option or a Nonqualified Stock Option. However, notwithstanding
such designations, to the extent that the aggregate Fair Market Value of the Shares with respect to which Options designated as
Incentive Stock Options are exercisable for the first time by any employee during any calendar year (under all plans of the Company)
exceeds $100,000, such excess Options shall be treated as Nonqualified Stock Options. Options shall be taken into account in the
order in which they were granted.

 

(b) Terms of
Options. The term of each Incentive Stock Option shall be no more than ten (10) years from the date of grant. However,
in the case of an Incentive Stock Option granted to a Participant who, at the time the Option is granted, owns Shares representing
more than ten percent (10%) of the voting power of all classes of shares of the Company or any Parent or Subsidiary, the term of
the Option shall be no more than five (5) years from the date of grant. The terms of all Nonqualified Stock Options shall
be at the discretion of the Committee.

 

    	 	8	 

     

    

 

(c) Option
Exercise Prices.

 

(i) The
per Share exercise price under an Incentive Stock Option shall be as follows:

 

(A) If
granted to an employee who, at the time of the grant of such Incentive Stock Option, owns shares representing more than ten percent
(10%) of the voting power of all classes of shares of the Company or any Parent or Subsidiary, the per Share exercise price shall
be no less than 110% of the Fair Market Value per Share on the date of grant.

 

(B) If
granted to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the
date of grant.

 

(ii) The
per Share exercise price under a Nonqualified Stock Option or SAR shall be no less than one hundred percent (100%) of the Fair
Market Value per Share on the date of grant.

 

(iii) In
no event shall the Board or the Committee be permitted to Reprice an Option after the date of grant without shareholder approval.

 

(d) Vesting. To
the extent Options vest and become exercisable in increments, such Options shall cease vesting as of the date of the Optionee’s
Disability or termination of such Optionee’s Active Status for reasons other than Retirement or death, in each of which cases
such Options shall immediately vest in full.

 

(e) Substitution
of Stock SARs for Options. Notwithstanding anything in this Plan to the contrary, if the Company is required to or elects
to record as an expense in its consolidated statements of earnings the cost of Options pursuant to FAS 123 or a similar accounting
requirement, the Committee shall have the sole discretion to substitute, without receiving Participants’ permission, SARs
paid only in stock for outstanding Options; provided, the terms of the substituted stock SARs are the same as the terms of the
Options, the number of shares underlying the number of stock SARs equals the number of shares underlying the Options and the difference
between the Fair Market Value of the underlying Shares and the grant price of the SARs is equivalent to the difference between
the Fair Market Value of the underlying shares and the exercise price of the Options. 

 

(f) Exercise. Any
Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Committee at the time
of grant, and as are permissible under the terms of the Plan. An Option may not be exercised for a fraction of a Share.

 

(g) One-time
Exchange Program. Notwithstanding this Plan's prohibition on Repricing of Options, and notwithstanding anything else in this
Plan to the contrary, the Board or Committee may provide for, and the Company may implement, a one-time-only exchange offer ("Exchange
Offer"), under which the Company may issue Options under this Plan in exchange for Options previously issued and then outstanding
under this Plan or the Former Plan. The Exchange Offer is permitted only subject to the conditions described in the Company's definitive
proxy statement filed in connection with its 2009 annual meeting of shareholders.

 

SECTION 11.       Grant,
Terms and Conditions of Stock Awards.

 

(a) Designation. Restricted
Stock or Restricted Stock Units may be granted either alone, in addition to, or in tandem with other Awards granted under the Plan.
Restricted Stock or Restricted Stock Units may include a dividend equivalent right, as permitted by Section 5. After the Committee
determines that it will offer Restricted Stock or Restricted Stock Units, it will advise the Participant in writing or electronically,
by means of an Award Agreement, of the terms, conditions and restrictions, including vesting, if any, related to the offer, including
the number of Shares that the Participant shall be entitled to receive or purchase, the price to be paid, if any, and, if applicable,
the time within which the Participant must accept the offer. The offer shall be accepted by execution of an Award Agreement or
as otherwise directed by the Committee. Restricted Stock Units may be paid as permitted by Section 7(b). The term of each
award of Restricted Stock or Restricted Stock Units shall be at the discretion of the Committee.

 

(b) Performance
Criteria. Restricted Stock and Restricted Stock Units granted pursuant to the Plan that are intended to qualify as
“performance based compensation” under Section 162(m) of the Code shall be subject to the fulfillment of
performance goals relating to the Performance Criteria selected by the Committee and specified at the time such Restricted
Stock and Restricted Stock Units are granted. For purposes of this Plan, “Performance Criteria” means one or more
of the following (as selected by the Committee): (i) earnings per share, including earnings per share as adjusted
(a) to exclude the effect of any (1) significant acquisitions or dispositions of businesses by the Company,
(2) one-time, non-operating charges and (3) accounting changes (including but not limited to any accounting changes
that alter the recognition of stock option expense and any accounting changes the Company adopts early); and (b) for any
stock split, stock dividend or other recapitalization; (ii) earnings per share before taxes, subject to any of the
adjustments described above; (iii) earnings; (iv) earnings before interest, taxes and amortization; (v) total
shareholder return; (vi) share price performance; (vii) return on equity; (viii) return on managed assets;
(ix) revenue; (x) operating expenses; (xi) operating income; (xii) originations
volume; (xiii) originations growth; (xiv) net charge-offs; (xv) net charge-off percentage;
(xvi) portfolio growth; (xvii) net interest margin; or (xviii) cash flow.

 

    	 	9	 

     

    

 

(c) Vesting. Unless
the Committee determines otherwise, the Award Agreement shall provide for the forfeiture of the non-vested Shares underlying Restricted
Stock or Restricted Stock Units upon the termination of a Participant’s Active Status. To the extent that the Participant
purchased the Shares granted under such Restricted Stock or Restricted Stock Units and any such Shares remain non-vested at the
time the Participant’s Active Status terminates, the termination of Active Status shall cause an immediate sale of such non-vested
Shares to the Company at the original price per Share paid by the Participant.

 

SECTION 12.       Grant,
Terms and Conditions of SARs.

 

(a) Grants. The
Committee shall have the full power and authority, exercisable in its sole discretion, to grant SARs to selected Participants.
The Committee is authorized to grant both tandem stock appreciation rights, consisting of SARs with underlying Options (“Tandem
SARs”), and stand-alone stock appreciation rights (“Stand-Alone SARs”) as described below. The terms of SARs
shall be at the discretion of the Committee. In no event shall the Board or the Committee be permitted to Reprice a SAR after the
date of grant without shareholder approval.

 

(b) Tandem
SARs.

 

(i) Participants
may be granted a Tandem SAR, exercisable upon such terms and conditions as the Committee shall establish, to elect between the
exercise of the underlying Option for Shares or the surrender of the Option in exchange for a distribution from the Company in
an amount equal to the excess of (A) the Fair Market Value (on the Option surrender date) of the number of Shares in which
the Participant is at the time vested under the surrendered Option (or surrendered portion thereof) over (B) the aggregate
exercise price payable for such vested Shares.

 

(ii) No such Option
surrender shall be effective unless it is approved by the Committee, either at the time of the actual Option surrender or at any
earlier time. If the surrender is so approved, then the distributions to which the Participant shall become entitled under this
Section 12(b) may be made in Shares valued at Fair Market Value (on the Option surrender date), in cash, or partly in Shares
and partly in cash, as the Committee shall deem appropriate.

 

(iii) If the surrender
of an Option is not approved by the Committee, then the Participant shall retain whatever rights he or she had under the surrendered
Option (or surrendered portion thereof) on the Option surrender date and may exercise such rights at any time prior to the later
of (A) five (5) business days after the receipt of the rejection notice or (B) the last day on which the Option
is otherwise exercisable in accordance with the terms of the instrument evidencing such Option, but in no event may such rights
be exercised more than ten (10) years after the date of the Option grant. 

 

(c) Stand-Alone
SARs.

 

(i) A Participant
may be granted a Stand-Alone SAR not tied to any underlying Option under Section 10 of the Plan. The Stand-Alone SAR shall
cover a specified number of Shares and shall be exercisable upon such terms and conditions as the Committee shall establish. Upon
exercise of the Stand-Alone SAR, the holder shall be entitled to receive a distribution from the Company in an amount equal to
the excess of (A) the aggregate Fair Market Value (on the exercise date) of the Shares underlying the exercised right over
(B) the aggregate base price in effect for those Shares.

 

(ii) The number
of Shares underlying each Stand-Alone SAR and the base price in effect for those Shares shall be determined by the Committee at
the time the Stand-Alone SAR is granted. In no event, however, may the base price per Share be less than the Fair Market Value
per underlying Share on the grant date.

 

(iii) The distribution
with respect to an exercised Stand-Alone SAR may be made in Shares valued at Fair Market Value on the exercise date, in cash, or
partly in Shares and partly in cash, as the Committee shall deem appropriate.

 

(d) Exercised
SARs. The Shares issued in settlement of any SARs exercised under this Section 12 shall not be available for
subsequent issuance under the Plan. In accordance with Section 4, Shares underlying any exercised SARs that were not issued
in settlement of the SAR shall become available for future issuance under the Plan.

 

PART IV - TERM
OF PLAN AND SHAREHOLDER APPROVAL

 

SECTION 13.       Term
of Plan. The Plan became effective as of the Effective Date. It shall continue in effect until April 27, 2026 or until
terminated under Section 14 of the Plan or extended by an amendment approved by the shareholders of the Company pursuant to
Section 14(a).

 

    	 	10	 

     

    

 

SECTION 14.       Amendment
and Termination of the Plan.

 

(a) Amendment
and Termination. The Board or the Committee may amend or terminate the Plan from time to time in such respects as the
Board may deem advisable (including, but not limited to amendments which the Board deems appropriate to enhance the Company’s
ability to claim deductions related to stock option exercises); provided that to the extent required by the Code or the rules of
Nasdaq, of any national stock exchange on which the Company’s common shares are listed, or of the SEC, shareholder approval
shall be required for any amendment of the Plan. Subject to the foregoing, it is specifically intended that the Board or Committee
may amend the Plan without shareholder approval to comply with legal, regulatory and listing requirements and to avoid unanticipated
consequences deemed by the Committee to be inconsistent with the purpose of the Plan or any Award Agreement.

 

(b) Participants
in Foreign Countries. The Committee shall have the authority to adopt such modifications, procedures, and sub-plans as
may be necessary or desirable to comply with provisions of the laws of foreign countries in which the Company or its Subsidiaries
may operate to assure the viability of the benefits from Awards granted to Participants performing services in such countries and
to meet the objectives of the Plan.

 

(c) Effect
of Amendment or Termination. Any amendment or termination of the Plan shall not affect Awards already granted and such
Awards shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise
between the Participant and the Committee, which agreement must be in writing and signed by the Participant and the Company.

 

SECTION 15.       Shareholder
Approval. The effectiveness of the Plan is subject to approval by the shareholders of the Company in accordance with applicable
Nasdaq rules.

 

 

 

 

 

 

    	 	11Exhibit

Exhibit 4.1
FEDERAL HOME LOAN MORTGAGE CORPORATION 
GLOBAL DEBT FACILITY AGREEMENT 
AGREEMENT, dated as of February 18, 2016, among the Federal Home Loan Mortgage Corporation (“Freddie   Mac”) and Holders of Debt Securities (each as hereinafter defined). 
Whereas: 
(a) Freddie Mac is a corporation duly organized and existing under and by virtue of the laws of the United States  (Title III of the Emergency Home Finance Act of 1970, as amended (the “Freddie Mac Act”)) and has full corporate power and authority to enter into this Agreement and to undertake the obligations undertaken by it herein; 
(b) Pursuant to Section 306(a) of the Freddie Mac Act, Freddie Mac is authorized, upon such terms and conditions as it may prescribe, to borrow, to pay interest or other return, and to issue notes, bonds or other obligations or securities; and 
(c) To provide funds to permit Freddie Mac to engage in activities consistent with its statutory purposes, Freddie Mac  has established a Global Debt Facility (the “Facility”) and authorized the issuance, from time to time, pursuant to this Agreement, of unsecured general obligations of Freddie Mac or, if so provided in the applicable Supplemental Agreement (as hereinafter defined), secured obligations of Freddie Mac (“Debt Securities”). 
NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, it is hereby agreed     that the following terms and conditions of this Agreement (including, as to each issue of the Debt Securities, the applicable Supplemental Agreement) shall govern the Debt Securities and the rights and obligations of Freddie Mac and Holders with respect to the Debt Securities. 
ARTICLE I 
Definitions 
Whenever used in this Agreement, the following words and phrases shall have the following meanings, unless the  context otherwise requires. 
Additional Debt Securities:    Debt Securities issued by Freddie Mac with the same terms (other than Issue Date,    interest commencement date and issue price) and conditions as Debt Securities for which settlement has previously occurred  so as to form a single series of Debt Securities as specified in the applicable Supplemental Agreement. 
Agreement:    This Global Debt Facility Agreement dated as of February 18, 2016, as it may be amended or  supplemented from time to time, and successors thereto pursuant to which Freddie Mac issues the Debt Securities. 
Amortizing Debt Securities:    Debt Securities on which Freddie Mac makes periodic payments of principal during the terms of such Debt Securities as described in the related Supplemental Agreement. 
Beneficial Owner:    The entity or individual that beneficially owns a Debt Security. 
Bonds:    Callable or non-callable Debt Securities with maturities of more than ten years. 
Book-Entry Rules:    The Department of Housing and Urban Development regulations (24 C.F.R. Part 81, Subpart H) applicable to the Fed Book-Entry Debt Securities, FHFA regulations, 12 C.F.R. Part 1249, and such procedures as to which Freddie Mac and the FRBNY may agree. 
 
Business Day:    (i) With respect to Fed Book-Entry Debt Securities, any day other than (a) a Saturday, (b) a Sunday,  (c) a day on which the FRBNY is closed, (d) as to any Holder of a Fed Book-Entry Debt Security, a day on which the Federal Reserve Bank that maintains the Holder’s account is closed, or (e) a day on which Freddie Mac’s offices are closed; and (ii) with respect to Registered Debt Securities, any day other than (a) a Saturday, (b) a Sunday, (c) a day on which banking institutions are closed in the City of New York, (d) for any required payment, a day on which banking institutions are closed    in the place of payment, or (e) a day on which Freddie Mac’s offices are closed. 
Calculation Agent:    Freddie Mac or a bank or broker-dealer designated by Freddie Mac in the applicable    Supplemental Agreement as the entity responsible for determining the interest rate on a Variable Rate Debt Security. 
Calculation Date:    In each year, each of those days in the calendar year that are specified in the applicable  Supplemental Agreement as being the scheduled Interest Payment Dates regardless, for this purpose, of whether any such    date is in fact an Interest Payment Date and, for the avoidance of doubt, a “Calculation Date” may occur prior to the Issue   Date or after the last Principal Payment Date. 
Callable Reference Notes:    Callable Reference Securities with maturities of more than one year. 
Cap:    A maximum interest rate at which interest may accrue on a Variable Rate Debt Security during any Interest    Reset Period. 

1

Citibank  - London:    Citibank, N.A., London office, the Global Agent for Registered Debt Securities. 
Citigroup  - Frankfurt:    Citigroup Global Markets Deutschland AG, the Registrar for Registered Debt Securities. 
Clearstream, Luxembourg:    Clearstream Banking, société anonyme, which holds securities for its participants and facilitates the clearance and settlement of securities transactions between its participants through electronic book-entry   changes in accounts of its participants. 
CMS Determination Date:    The second New York Banking Day preceding the applicable Reset Date. 
CMS Rate:    The rate determined by the Calculation Agent in accordance with Section 2.07(i)(N). 
CMT Determination Date:    The second New York Banking Day preceding the applicable Reset Date. 
CMT Rate:    The rate determined by the Calculation Agent in accordance with Section 2.07(i)(M). 
Code:    The Internal Revenue Code of 1986, as amended. 
Common Depositary:    The common depositary for Euroclear, Clearstream, Luxembourg and/or any other applicable clearing system, which will hold Other Registered Debt Securities on behalf of Euroclear, Clearstream, Luxembourg and/or  any such other applicable clearing system. 
CUSIP Number:    A unique nine-character designation assigned to each Debt Security by the CUSIP Service Bureau   and used to identify each issuance of Debt Securities on the records of the Federal Reserve Banks or DTC, as applicable. 
Day Rate:    The arithmetic mean for each day in a Seven-Day Period as determined by the Calculation Agent in accordance with Section 2.07(i)(P)(2). 
 
Dealers:    Firms that engage in the business of dealing or trading in debt securities as agents, brokers or principals. 
Debt Securities:    Unsecured subordinated or unsubordinated notes, bonds and other debt securities issued from time to time by Freddie Mac under the Facility, or if so provided in the applicable Supplemental Agreement, secured obligation    issued from time to time by Freddie Mac under the Facility. 
Deleverage Factor:    A Multiplier of less than one by which an applicable Index is multiplied. 
Depository:    DTC or any successor. 
Deposits:    Deposits commencing on the applicable Reset Date. 
Designated EURIBOR Reuters Page:    The display on Reuters Page EURIBOR01, or any successor page or such other page (or any successor page) on that service or any successor service specified in the applicable Supplemental Agreement for the purpose of displaying rates for Deposits in euro. 
Designated EUR-LIBOR Reuters Page:    The display on Reuters Page LIBOR01 or any successor page or such other page (or any successor page) on that service or any successor service specified in the applicable Supplemental Agreement for the purpose of displaying rates for Deposits in euro. 
Designated Reuters Page:    The display on Reuters Page LIBOR01 (or where the Index Currency is Australian dollars, Swiss francs or Yen, Page LIBOR02) or any successor page or such other page (or any successor page) on that service or any successor service specified in the applicable Supplemental Agreement for the purpose of displaying British Bankers’ Association interest settlement rates for Deposits in the Index Currency. 
Determination Date:    The date as of which the rate of interest applicable to an Interest Reset Period is determined. 
Determination Period:    The period from, and including, one Calculation Date to, but excluding, the next Calculation Date. 
DTC:    The Depository Trust Company, a limited-purpose trust company, which holds securities for DTC participants and facilitates the clearance and settlement of transactions between DTC participants through electronic book-entry changes    in accounts of DTC participants. 
DTC Registered Debt Securities:    Registered Debt Securities registered in the name of a nominee of DTC, which will clear and settle through the system operated by DTC. 
EURIBOR:    The rate determined by the Calculation Agent in accordance with Section 2.07(i)(J). 
EURIBOR Determination Date:    The second TARGET2 Business Day preceding the applicable Reset Date, unless EURIBOR is determined in accordance with Section 2.07(i)(J)(3), in which case it means the applicable Reset Date. 
EUR-LIBOR:    The rate determined by the Calculation Agent in accordance with Section 2.07(i)(I). 
EUR-LIBOR Determination Date:    The second TARGET2 Business Day preceding the applicable Reset Date. 
 

2

Euroclear:    Euroclear System, a depositary that holds securities for its participants and clears and settles transactions between its participants through simultaneous electronic book-entry delivery against payment. 
Euro Representative Amount:    A principal amount of not less than the equivalent of U.S. $1,000,000 in euro that, in    the Calculation Agent’s sole judgment, is representative for a single transaction in the relevant market at the relevant time. 
Euro-Zone:    The region consisting of member states of the European Union that adopt the single currency in  accordance with the Treaty. 
Event of Default:    As defined in Section 7.01(a). 
Extendible Variable Rate Securities:    Variable Rate Debt Securities, the maturity of which may be extended at a Benefical Owner’s option effective as of certain specified dates, subject to a final maturity date, and that bear interest at variable rates subject to different Spreads for different specified periods. 
Facility:    The Global Debt Facility described in the Offering Circular dated February 18, 2016 under which Freddie Mac issues the Debt Securities. 
Fed Book-Entry Debt Securities:    U.S. dollar denominated Debt Securities issued and maintained in book-entry form   on the Fed Book-Entry System. 
Fed Book-Entry System:    The book-entry system of the Federal Reserve Banks which provides book-entry holding     and settlement for U.S. dollar denominated securities issued by the U.S. Government, certain of its agencies,           instrumentalities, government-sponsored enterprises and international organizations of which the United States is a member. 
Federal Funds Rate (Daily):    The rate determined by the Calculation Agent in accordance with Section 2.07(i)(O). 
Federal Funds Rate (Daily) Determination Date:    The applicable Reset Date; provided, however, that if the Reset    Date is not a Business Day, then the Federal Funds Rate (Daily) Determination Date means the Business Day immediately following the applicable Reset Date. 
Federal Funds Rate (Weekly Average):    The rate determined by the Calculation Agent in accordance with     Section 2.07(i)(P). 
Federal Reserve:    The Board of Governors of the Federal Reserve System. 
Federal Reserve Bank:    Each U.S. Federal Reserve Bank that maintains Debt Securities in book-entry form. 
Federal Reserve Banks:    Collectively, the Federal Reserve Banks. 
Fiscal Agency Agreement:    The Uniform Fiscal Agency Agreement between Freddie Mac and the FRBNY. 
Fiscal Agent:    The FRBNY is fiscal agent for Fed Book-Entry Debt Securities. 
Fixed Principal Repayment Amount:    An amount equal to 100% of the principal amount of a Debt Security, payable    on the applicable Maturity Date or earlier date of redemption or repayment or a specified amount above or below such  principal amount, as provided in the applicable Supplemental Agreement. 
 
Fixed Rate Debt Securities:    Debt Securities that bear interest at a single fixed rate. 
Fixed/Variable Rate Debt Securities:    Debt Securities that bear interest at a single fixed rate during one or more specified periods and at a variable rate determined by reference to one or more Indices, or otherwise, during one or more    other periods. As to any such fixed rate period, the provisions of this Agreement relating to Fixed Rate Debt Securities shall apply, and, as to any such variable rate period, the provisions of this Agreement relating to Variable Rate Debt Securities     shall apply. 
Floor:    A minimum interest rate at which interest may accrue on a Debt Security during any Interest Reset Period. 
Freddie Mac:    Federal Home Loan Mortgage Corporation, a stockholder-owned company chartered by Congress pursuant to the Freddie Mac Act. 
Freddie Mac Act:    Title III of the Emergency Home Finance Act of 1970, as amended, 12 U.S.C. § 1451-1459. 
FRBNY:    The Federal Reserve Bank of New York. 
Global Agency Agreement:    The agreement between Freddie Mac, the Global Agent and the Registrar. 
Global Agent:    The entity selected by Freddie Mac to act as its fiscal, transfer and paying agent for Registered Debt Securities. 
H.15(519):    The weekly statistical release entitled “Statistical Release H.15(519), Selected Interest Rates” as     published by the Federal Reserve, or any successor publication of the Federal Reserve available on its website at                 http://www.federalreserve.gov/releases/h15/or any successor site. 

3

H.15 Daily Update: The daily update of H.15(519), available on the website of the Federal Reserve at                        http://www.federalreserve.gov/releases/h15/update/default.htm, or any successor site or publication. 
Holder:    In the case of Fed Book-Entry Debt Securities, the entity whose name appears on the book-entry records of a Federal Reserve Bank as Holder; in the case of Registered Debt Securities in global registered form, the depository, or its nominee, in whose name the Registered Debt Securities are registered on behalf of a related clearing system; and, in the case  of Registered Debt Securities in definitive registered form, the person or entity in whose name such Debt Securities are registered in the Register. 
Holding Institutions:    Entities eligible to maintain book-entry accounts with a Federal Reserve Bank. 
Index:    LIBOR, EUR-LIBOR, EURIBOR, Prime Rate, Treasury Rate, CMT Rate, CMS Rate, Federal Funds Rate (Daily), or Federal Funds (Weekly Average) or other specified interest rate, exchange rate or other index, as the case may be. 
Index Currency:    The currency or currency unit specified in the applicable Supplemental Agreement with respect to which an Index will be calculated for a Variable Rate Debt Security; provided, however, that if euro are substituted for such currency or currency unit, the Index Currency will be euro and, with respect to LIBOR, the determination provisions for    EUR-LIBOR will apply to such Debt Securities upon such substitution. If no such currency or currency unit is specified in    the applicable Supplemental Agreement, the Index Currency will be U.S. dollars. 
 
Index Maturity:    The period with respect to which an Index will be calculated for a Variable Rate Debt Security that is specified in the applicable Supplemental Agreement. 
Interest Component:    Each future interest payment, or portion thereof, due on or prior to the Maturity Date, or if the Debt Security is subject to redemption or repayment prior to the Maturity Date, the first date on which such Debt Security is subject to redemption or repayment. 
Interest Payment Date:    The date or dates on which interest on Debt Securities will be payable in arrears. 
Interest Payment Period:    Unless otherwise provided in the applicable Supplemental Agreement, the period beginning on (and including) the Issue Date or the most recent Interest Payment Date, as the case may be, and ending on (but excluding) the earlier of the next Interest Payment Date or the Principal Payment Date. 
Interest Reset Period:    The period beginning on the applicable Reset Date and ending on the calendar day preceding   the next Reset Date. 
Issue Date:    The date on which Freddie Mac wires an issue of Debt Securities to Holders or other date specified in the applicable Supplemental Agreement. 
Leverage Factor:    A Multiplier of greater than one by which an applicable Index is multiplied. 
LIBOR:    The rate determined by the Calculation Agent in accordance with Section 2.07(i)(H). 
LIBOR Determination Date:    The second London Banking Day preceding the applicable Reset Date unless the Index Currency is Sterling, in which case it means the applicable Reset Date. 
London Banking Day:    Any day on which commercial banks are open for business (including dealings in foreign exchange and deposits in the Index Currency) in London. 
Maturity Date:    The date, one day or longer from the Issue Date, on which a Debt Security will mature unless   extended, redeemed or repaid prior thereto. 
Mortgage Linked Amortizing Debt Securities:    Amortizing Debt Securities on which Freddie Mac makes periodic payments of principal based on the rate of payments on referenced mortgage or mortgage-related assets, as described in the related Supplemental Agreement. 
Multiplier:    A constant or variable number (which may be greater than or less than one) to be multiplied by the    relevant Index for a Variable Rate Debt Security. 
Notes:    Callable or non-callable Debt Securities with maturities of more than one day. 
New York Banking Day:    Any day other than (a) a Saturday, (b) a Sunday, (c) a day on which banking institutions in    the City of New York are required or permitted by law or executive order to close, or (d) a day on which the FRBNY is    closed. 
Offering Circular:    The Freddie Mac Global Debt Facility Offering Circular dated February 18, 2016 (including any related Offering Circular Supplement) and successors thereto. 
OID Determination Date:    The last day of the last accrual period ending prior to the date of the meeting of Holders    (or, for consents not at a meeting, prior to a date established by Freddie Mac). The accrual period will be the same as the accrual period used by Freddie Mac to determine its deduction for accrued original issue discount under section 163 (e) of the Code. 

4

 
Other Registered Debt Securities:    Registered Debt Securities that are not DTC Registered Debt Securities, that are deposited with a Common Depositary and that will clear and settle through the systems operated by Euroclear, Clearstream, Luxembourg and/or any such other applicable clearing system other than DTC. 
Pricing Supplement:    A supplement to the Offering Circular that describes the specific terms, of, and provides pricing information and other information for, an issue of Debt Securities or which otherwise amends, modifies or supplements the terms of the Offering Circular. 
Prime Rate:    The rate determined by the Calculation Agent in accordance with Section 2.07(i)(K). 
Prime Rate Determination Date:    The New York Banking Day preceding the applicable Reset Date. 
Principal Component:    The principal payment plus any interest payments that are either due after the date specified     in, or are specified as ineligible for stripping in, the applicable Supplemental Agreement. 
Principal Financial Center:    (1) with respect to U.S. dollars, Sterling, Yen and Swiss francs, the City of New York, London, Tokyo and Zurich, respectively; or (2) with respect to any other Index Currency, the city specified in the related Pricing Supplement. 
Principal Payment Date:    The Maturity Date, or the earlier date of redemption or repayment, if any (whether such redemption or repayment is in whole or in part). 
Range Accrual Debt Securities:    Variable Rate Debt Securities on which no interest may accrue during periods when  the applicable Index is outside a specified range as described in the related Supplemental Agreement. 
Record Date:    As to Registered Debt Securities issued in global form, the close of business on the Business Day immediately preceding such Interest Payment Date. As to Registered Debt Securities issued in definitive form, the fifteenth calendar day preceding an Interest Payment Date. Interest on a Registered Debt Security will be paid to the Holder of such Registered Debt Security as of the close of business on the Record Date. 
Reference Bonds:    Non-callable Reference Securities with maturities of more than ten years. 
Reference Notes:    Non-callable Reference Securities with maturities of more than one year. 
Reference Securities:    Scheduled U.S. dollar denominated issues of Debt Securities in large principal amounts, which may be either Callable Reference Notes, Reference Bonds or Reference Notes. 
Register:    A register of the Holders of Registered Debt Securities maintained by the Registrar. 
Registered Debt Securities:    Debt Securities issued and maintained in global registered or definitive registered form     on the books and records of the Registrar. 
Registrar:    The entity selected by Freddie Mac to maintain the Register. 
Representative Amount:    A principal amount of not less than U.S. $1,000,000 (or, if the Index Currency is other than U.S. dollars, a principal amount not less than the equivalent in the Index Currency) that, in the Calculation Agent’s sole judgment, is representative for a single transaction in the relevant market at the relevant time. 
 
Reset Date:    The date on which a new rate of interest on a Debt Security becomes effective. 
Reuters:    Reuters Group PLC or any successor service. 
Reuters USAUCTION10 Page:    The display designated as “USAUCTION10” (or any successor page) provided by Reuters. 
Reuters USAUCTION11 Page:    The display designated as “USAUCTION11” (or any successor page) provided by Reuters. 
Reuters US PRIME1 Page:    The display designated as page “USPRIME1”’ (or any successor page) provided by  Reuters 
Seven-Day Period:    As defined in Section 2.07(i)(P)(1). 
Specified Currency:    U.S. Dollars. 
Specified Interest Currency:    U.S. Dollars. 
Specified Payment Currency:    U.S. Dollars. 
Specified Principal Currency:    U.S. Dollars. 
Spread:    A constant or variable percentage or number to be added to or subtracted from the relevant Index for a    Variable Rate Debt Security. 
Step Debt Securities:    Debt Securities that bear interest at different fixed rates during different specified periods. 

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Sterling:    British pounds sterling. 
Supplemental Agreement:    An agreement which, as to the related issuance of Debt Securities, supplements the other provisions of this Agreement and identifies and establishes the particular offering of Debt Securities issued in respect thereof.  A Supplemental Agreement may be documented by a supplement to this Agreement, a Pricing Supplement, a confirmation or   a terms sheet. A Supplemental Agreement may, as to any particular issuance of Debt Securities, modify, amend or     supplement the provisions of this Agreement in any respect whatsoever. A Supplemental Agreement shall be effective and binding as of its publication, whether or not executed by Freddie Mac. 
TARGET2:    The Trans-European Automated Real-Time Gross Settlement Express Transfer payment system which utilizes a single shared platform and which was launched on November 19, 2007. 
TARGET2 Business Day:    A day on which the TARGET2 system or its successor is operating. 
Treasury Auction:    The most recent auction of Treasury Bills prior to a given Reset Date. 
Treasury Bills:    Direct obligations of the United States. 
Treasury Department:    United States Department of the Treasury. 
Treasury Rate:    The rate determined by the Calculation Agent in accordance with Section 2.07(i)(L). 
Treasury Rate Determination Date:    The day of the week in which the Reset Date falls on which Treasury Bills would normally be auctioned or, if no auction is held for a particular week, the first Business Day of that week. Treasury Bills are normally sold at auction on Monday of each week, unless that day is a legal holiday, in which case the auction is normally   held on the following Tuesday, except that the auction may be held on the preceding Friday; provided, however, that if an auction is held on the Friday of the week preceding the Reset Date, the Treasury Rate Determination Date will be that preceding Friday; and provided, further, that if the Treasury Rate Determination Date would otherwise fall on the Reset Date, that Reset Date will be postponed to the next succeeding Business Day. 
Variable Principal Repayment Amount:    The principal amount determined by reference to one or more Indices or otherwise, payable on the applicable Maturity Date or date of redemption or repayment of a Debt Security, as specified in the applicable Supplemental Agreement. 
Variable Rate Debt Securities:    Debt Securities that bear interest at a variable rate, and reset periodically, determined   by reference to one or more Indices or otherwise. The formula for a variable rate may include a Spread. 
Yen:    Japanese yen. 
Zero Coupon Debt Securities:    Debt Securities that do not bear interest and are issued at a discount to their principal amount. 
ARTICLE II 
Authorization; Certain Terms 
Section 2.01. Authorization. 
Debt Securities shall be issued by Freddie Mac in accordance with the authority vested in Freddie Mac by       Section 306(a) of the Freddie Mac Act. The indebtedness represented by the Debt Securities shall be unsecured general obligations of Freddie Mac, or, if so provided in the applicable Supplemental Agreement, secured obligations of Freddie     Mac. Debt Securities shall be offered from time to time by Freddie Mac in an unlimited amount and shall be known by the designation given them, and have the Maturity Dates stated, in the applicable Supplemental Agreement. Freddie Mac, in its discretion and at any time, may offer Additional Debt Securities having the same terms and conditions as Debt Securities previously offered. The Debt Securities may be issued as Reference Securities, which includes Callable Reference Notes, Reference Notes and Reference Bonds, or may be issued as any other Debt Securities with maturities of one day or longer    and may be in the form of Notes or Bonds or otherwise. Issuances may consist of new issues of Debt Securities or reopenings of an existing issue of Debt Securities. 
Section 2.02. Other Debt Securities Issued Hereunder. 
Freddie Mac may from time to time create and issue Debt Securities hereunder which contain terms and conditions not specified in this Agreement. Such Debt Securities shall be governed by the applicable Supplemental Agreement and, to the extent that the terms of this Agreement are not inconsistent with Freddie Mac’s intent in creating and issuing such Debt Securities, by the terms of this Agreement. Such Debt Securities shall be secured or unsecured obligations of Freddie Mac. If the Debt Securities are secured obligations of Freddie Mac, the provisions of Article V hereof shall apply to such Debt Securities. 

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Section 2.03. Specified Currency and Specified Payment Currency. 
Each Debt Security shall be denominated and payable in U.S. dollars only. 
 
Section 2.04. Minimum Denominations. 
The Debt Securities shall be issued and maintained in the minimum denominations of U.S. $1,000 and additional increments of U.S. $1,000, unless otherwise provided in the applicable Supplemental Agreement and as may be allowed or required from time to time by the relevant regulatory authority or any laws or regulations applicable to the Specified    Currency. In the case of Zero Coupon Debt Securities, denominations will be expressed in terms of the principal amount payable on the Maturity Date. 
Section 2.05. Maturity. 
(a)  Each Debt Security shall mature on its Maturity Date, as provided in the applicable Supplemental Agreement,    unless redeemed at the option of Freddie Mac or repaid at the option of the Holder prior thereto in accordance with the provisions described under Section 2.06. Debt Securities may be issued with minimum or maximum maturities or variable maturities allowed or required from time to time by the relevant regulatory or stock exchange authority or clearing systems or any laws or regulations applicable to the Specified Currency. 
(b)  If so provided in the applicable Supplemental Agreement, certain Debt Securities may have provision permitting  their Beneficial Owner to elect to extend the initial Maturity Date specified in such Supplemental Agreement, or any later    date to which the maturity of such Debt Securities has been extended, on specified dates. However, the maturity of such Debt Securities may not be extended beyond the final Maturity Date specified in the Supplemental Agreement. 
(b)  The principal amount payable on the Maturity Date of a Debt Security shall be a Fixed Principal Repayment   Amount or a Variable Principal Repayment Amount, in each case as provided in the applicable Supplemental Agreement. 
Section 2.06. Optional Redemption and Optional Repayment. 
(a)  The Supplemental Agreement for any particular issue of Debt Securities shall provide whether such Debt Securities may be redeemed at Freddie Mac’s option or repayable at the Holder’s option, in whole or in part, prior to their Maturity    Date. If so provided in the applicable Supplemental Agreement, an issue of Debt Securities shall be subject to redemption at   the option of Freddie Mac, or repayable at the option of the Holders, in whole or in part, on one or more specified dates, at    any time on or after a specified date, or during one or more specified periods of time. The redemption or repayment price for such Debt Securities (or such part of such Debt Securities as is redeemed or repaid) shall be an amount provided in, or determined in a manner provided in, the applicable Supplemental Agreement, together with accrued and unpaid interest to the date fixed for redemption or repayment. 
(b)  Unless otherwise provided in the applicable Supplemental Agreement, notice of optional redemption shall be given  to Holders of the related Debt Securities not less than 5 Business Days prior to the date of redemption in the manner provided in Section 8.07. The date that we provide such notice constitutes the first Business Day for purposes of this minimum notice period.  Freddie Mac also announces its intent to redeem certain Debt Securities on the Freddie Mac website at                  http://www.freddiemac.com/debt/html/redemption_release.html. 
(c)  In the case of a partial redemption of an issue of Fed Book-Entry Debt Securities by Freddie Mac, such Fed Book-Entry Debt Securities shall be redeemed pro rata. In the case of a partial redemption of an issue of Registered Debt Securities by Freddie Mac, one or more of such Registered Debt Securities shall be reduced by the Global Agent in the amount of such redemption, subject to the principal amount of such Registered Debt Securities after redemption remaining in an authorized denomination. The effect of any partial redemption of an issue of Registered Debt Securities on the Beneficial Owners of    such Registered Debt Securities will depend on the procedures of the applicable clearing system and, if such Beneficial    Owner is not a participant therein, on the procedures of the participant through which such Beneficial Owner owns its    interest. 
(d)  If so provided in the applicable Supplemental Agreement, certain Debt Securities shall be repayable, in whole or in part, by Freddie Mac at the option of the relevant Holders thereof or otherwise, on one or more specified dates, at any time on or after a specified date, or during one or more specified periods of time, upon terms and procedures provided in the    applicable Supplemental Agreement. Unless otherwise provided in the applicable Supplemental Agreement, in the case of a Registered Debt Security, to exercise such option, the Holder shall deposit with the Global Agent (i) such Registered Debt Security; and (ii) a duly completed notice of optional repayment in the form obtainable from the Global Agent, in each case   not more than the number of days nor less than the number of days specified in the applicable Supplemental Agreement prior  to the date fixed for repayment. Unless otherwise specified in the applicable Supplemental Agreement, no such Registered  Debt Security (or notice of repayment) so deposited may be withdrawn without the prior consent of Freddie Mac or the    Global Agent. Unless otherwise provided in the applicable Supplemental Agreement, in the case of a Fed Book-Entry Debt 

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Security, if the Beneficial Owner wishes to exercise such option, then the Beneficial Owner shall give notice thereof to   Freddie Mac through the relevant Holding Institution as provided in the applicable Supplemental Agreement. 
(e)  The principal amount payable upon redemption or repayment of a Debt Security shall be a Fixed Principal Repayment Amount or a Variable Principal Repayment Amount, in each case as provided in the applicable Supplemental Agreement. 
Section 2.07. Payment Terms of the Debt Securities. 
(a)  Debt Securities shall bear interest at one or more fixed rates or variable rates or may not bear interest. If so    provided in the applicable Supplemental Agreement, Debt Securities may be separated by a Holder into one or more Interest Components and Principal Components. The Offering Circular or the applicable Supplemental Agreement for such Debt Securities shall specify the procedure for stripping such Debt Securities into such Interest and Principal Components. 
(b)  The applicable Supplemental Agreement shall specify the frequency with which interest, if any, is payable on the related Debt Securities. Interest on Debt Securities shall be payable in arrears on the Interest Payment Dates specified in the applicable Supplemental Agreement and on each Principal Payment Date. 
(c)  Each issue of interest-bearing Debt Securities shall bear interest during each Interest Payment Period. No interest    on the principal of any Debt Security will accrue on or after the Principal Payment Date on which such principal is repaid. 
(d)  The determination by the Calculation Agent of the interest rate on, or any Index in relation to, a Variable Rate Debt Security and the determination of any payment on any Debt Security (or any interim calculation in the determination of any such interest rate, index or payment) shall, absent manifest error, be final and binding on all parties. If a principal or interest payment error occurs, Freddie Mac may correct it by adjusting payments to be made on later Interest Payment Dates or Principal Payment Dates (as appropriate) or in any other manner Freddie Mac considers appropriate. If the source of an Index changes in format, but the Calculation Agent determines that the Index source continues to disclose the information necessary to determine the related interest rate substantially as required, the Calculation Agent will amend the procedure for obtaining information from that source to reflect the changed format. All Index values used to determine principal or interest payments are subject to correction within 30 days from the applicable payment. The source of a corrected value must be the same    source from which the original value was obtained. A correction might result in an adjustment on a later date to the amount  paid to the Holder. 
(e)  Payments on Debt Securities shall be rounded to the nearest cent (with one-half cent or unit being rounded   upwards). 
(f)  In the event that any jurisdiction imposes any withholding or other tax on any payment made by Freddie Mac (or    our agent or any other person potentially required to withhold) with respect to a Debt Security, Freddie Mac (or our agent or such other person) will deduct the amount required to be withheld from such payment, and Freddie Mac (or our agent or such other person) will not be required to pay additional interest or other amounts, or redeem or repay the Debt Securities prior to the applicable Maturity Date, as a result. 
(g)  Fixed Rate Debt Securities 
Fixed Rate Debt Securities shall bear interest at a single fixed interest rate. The applicable Supplemental Agreement   shall specify the fixed interest rate per annum on a Fixed Rate Debt Security. Unless otherwise specified in the applicable Supplemental Agreement, interest on a Fixed Rate Debt Security shall be computed on the basis of a 360-day year consisting  of twelve 30-day months. 
(h)  Step Debt Securities 
Step Debt Securities shall bear interest from their Issue Date to a specified date at their initial fixed interest rate and   from that date to their Maturity Date at one or more different fixed interest rates that shall be prescribed as of the Issue Date.    A Step Debt Security will have one or more step periods. The applicable Supplemental Agreement shall specify the fixed interest rate per annum payable on Step Debt Securities for each related period from issuance to maturity. Unless otherwise specified in the applicable Supplemental Agreement, interest on a Step Debt Security shall be computed on the basis of a     360-day year consisting of twelve 30-day months. 
(i)  Variable Rate Debt Securities 
(A)  Variable Rate Debt Securities shall bear interest at a variable rate determined on the basis of a direct or an inverse relationship to one or more specified Indices or otherwise, (x) plus or minus a Spread, if any, or (y) multiplied by one     or more Leverage or Deleverage Factors, if any, as specified in the applicable Supplemental Agreement. Variable Rate Debt Securities also may bear interest in any other manner described in the applicable Supplemental Agreement. 
(B)  Variable Rate Debt Securities may have a Cap and/or a Floor. 

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(C)  The applicable Supplemental Agreement shall specify the accrual method (i.e., the day count convention) for calculating interest or any relevant accrual factor on the related Variable Rate Debt Securities. The accrual method may incorporate one or more of the following defined terms: 
“Actual/360” shall mean that interest or any other relevant accrual factor shall be calculated on the basis of the actual number of days elapsed in a year of 360 days. 
 
“Actual/365 (fixed)” shall mean that interest or any other relevant accrual factor shall be calculated on the basis   of the actual number of days elapsed in a year of 365 days, regardless of whether accrual or payment occurs during a calendar leap year. 
“Actual/Actual” shall mean, unless otherwise indicated in the applicable Supplemental Agreement, that interest   or any other relevant accrual factor shall be calculated on the basis of (x) the actual number of days elapsed in the  Interest Payment Period divided by 365, or (y) if any portion of the Interest Payment Period falls in a calendar leap    year, (A) the actual number of days in that portion divided by 366 plus (B) the actual number of days in the remaining portion divided by 365. If so indicated in the applicable Supplemental Agreement, “Actual/Actual” shall mean interest   or any other relevant accrual factor shall be calculated in accordance with the definition of “Actual/Actual” adopted by the International Securities Market Association (“Actual/Actual (ISMA)”), which means a calculation on the basis of the following: 
(1)  where the number of days in the relevant Interest Payment Period is equal to or shorter than the Determination Period during which such Interest Payment Period ends, the number of days in such Interest Payment Period divided by the product of (A) the number of days in such Determination Period and (B) the number of Interest Payment Dates that would occur in one calendar year; or 
(2)  where the Interest Payment Period is longer than the Determination Period during which the Interest  Payment Period ends, the sum of (A) the number of days in such Interest Payment Period falling in the Determination Period in which the Interest Payment Period begins divided by the product of (X) the number of days in such Determination Period and (Y) the number of Interest Payment Dates that would occur in one calendar year; and (B) the number of days in such Interest Payment Period falling in the next Determination Period divided by the product of (X) the number of days in such Determination Period and (Y) the number of Interest Payment Dates that would occur in one calendar year. 
(D)  The applicable Supplemental Agreement shall specify the frequency with which the rate of interest on the related Variable Rate Debt Securities shall reset. The applicable Supplemental Agreement also shall specify the Reset Date. If  the interest rate will reset within an Interest Payment Period, then the interest rate in effect on the sixth Business Day preceding an Interest Payment Date will be the interest rate for the remainder of that Interest Payment Period and the  first day of each Interest Payment Period also will be a Reset Date. Variable Rate Debt Securities may bear interest    prior to the initial Reset Date at an initial interest rate, if any, specified in the applicable Supplemental Agreement. If     so, then the first day of the first Interest Payment Period will not be a Reset Date. The rate of interest applicable to each Interest Reset Period shall be determined as provided below or in the applicable Supplemental Agreement. 
Except for a Variable Rate Debt Security as to which the rate of interest thereon is determined by reference to LIBOR, EUR-LIBOR, EURIBOR, Prime Rate, Treasury Rate, CMT Rate, CMS Rate, Federal Funds Rate (Daily), or Federal Funds Rate (Weekly Average) or as otherwise set forth in the applicable Supplemental Agreement, the Determination Date for a Variable Rate Debt Security means the second Business Day preceding the Reset Date applicable to an   Interest Reset Period. 
(E)  If the rate of interest on a Variable Rate Debt Security is subject to adjustment within an Interest Payment Period, accrued interest shall be calculated by multiplying the principal amount of such Variable Rate Debt Security by an accrued interest factor. Unless otherwise specified in the applicable Supplemental Agreement, this accrued interest   factor shall be computed by adding the interest factor calculated for each Interest Reset Period in such Interest Payment Period and rounding the sum to nine decimal places. The interest factor for each such Interest Reset Period shall be computed by (1) multiplying the number of days in the Interest Reset Period by the interest rate (expressed as a    decimal) applicable to such Interest Reset Period; and (2) dividing the product by the number of days in the year   referred to in the accrual method specified in the applicable Supplemental Agreement. 
(F)  If and so long as an issue of Variable Rate Debt Securities is admitted for trading on the Euro MTF Market and    listed on the Official List of the Luxembourg Stock Exchange and such stock exchange so requires, the Calculation  Agent shall cause the interest rate for the applicable Interest Reset Period and the amount of interest on the minimum denomination in respect of such issue that would accrue through the last day of such Interest Reset Period, as well as    the last day of such Interest Reset Period, to be provided to such stock exchange as soon as practicable, but in no event later than the applicable Reset Date. 

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(G)  For each issue of Variable Rate Debt Securities, the Calculation Agent shall also cause the interest rate for the applicable Interest Reset Period and the amount of interest accrued on the minimum denomination specified for such issue to be made available to Holders as soon as practicable after its determination but in no event later than two  Business Days thereafter. Such interest amounts so made available may subsequently be amended (or appropriate alternative arrangements made by way of adjustment) without notice in the event of an extension or shortening of the Interest Reset Period. 
(H)  If the applicable Supplemental Agreement specifies LIBOR as the applicable Index for determining the rate of interest for the related Variable Rate Debt Security, the following provisions shall apply (unless otherwise specified in  the applicable Supplemental Agreement): 
“LIBOR” shall mean, with respect to any Reset Date (in the following order of priority): 
(1)  the rate (expressed as a percentage per annum) for Deposits in the Index Currency having the Index   Maturity that appears on the Designated Reuters Page at 11:00 a.m. (London time) on such LIBOR  Determination Date; 
(2)  if such rate does not so appear pursuant to clause (1) above, the Calculation Agent shall request the    principal London offices of four leading banks in the London interbank market selected by the Calculation   Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) to provide such banks’ offered quotations (expressed as a percentage per annum) to prime banks in the London interbank market for Deposits in the Index Currency having the Index Maturity at 11:00 a.m. (London time) on such LIBOR Determination Date and in a Representative Amount. If at least two quotations are provided, LIBOR  shall be the arithmetic mean (if necessary rounded upwards) of such quotations; 
(3)  if fewer than two such quotations are provided as requested in clause (2) above, the Calculation Agent shall request four major banks in the applicable Principal Financial Center selected by the Calculation Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) to provide such banks’ offered quotations (expressed as a percentage per annum) to leading European banks for a loan in the Index Currency for a period of time corresponding to the Index Maturity, commencing on such Reset Date, at approximately 11:00 a.m. in the Principal Financial Center on such LIBOR Determination Date and in a Representative Amount. If at least two such quotations are provided, LIBOR shall be the arithmetic mean (if necessary rounded upwards) of such quotations; and 
(4)  if fewer than two such quotations are provided as requested in clause (3) above, LIBOR shall be LIBOR determined with respect to the Reset Date immediately preceding such Reset Date or, in the case of the first  Reset Date, shall be the rate for Deposits in the Index Currency having the Index Maturity at 11:00 a.m.    (London time) on the most recent London Banking Day preceding the related LIBOR Determination Date for which such rate shall have been displayed on the Designated Reuters Page with respect to Deposits    commencing on the second London Banking Day following such date (or, if the Index Currency is Sterling, commencing on such date). 
(I)  If the applicable Supplemental Agreement specifies EUR-LIBOR as the applicable Index for determining the rate     of interest for the related Variable Rate Debt Security, the following provisions shall apply (unless otherwise specified        in the applicable Supplemental Agreement): 
“EUR-LIBOR” shall mean, with respect to any Reset Date (in the following order of priority): 
(1)  the rate (expressed as a percentage per annum) for Deposits in euro having the Index Maturity that appears  on the Designated EUR-LIBOR Reuters Page at 11:00 a.m. (London time) on the related EUR-LIBOR Determination Date; 
(2)  if such rate does not so appear pursuant to clause (1) above, the Calculation Agent shall request the    principal London offices of four leading banks in the London interbank market selected by the Calculation   Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) to provide such banks’ offered quotations (expressed as a percentage per annum) to prime banks in the London interbank market for Deposits in euro having the Index Maturity at 11:00 a.m. (London time) on such EUR-LIBOR Determination Date and in a Euro Representative Amount. If at least two quotations are provided, EUR-LIBOR shall be the arithmetic mean (if necessary rounded upwards) of such quotations; 
(3)  if fewer than two such quotations are provided as requested in clause (2) above, the Calculation Agent shall request four major banks in London selected by the Calculation Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) to provide such banks’ offered quotations (expressed as a percentage per annum) to leading European banks for a loan in euro for a period of time corresponding to the Index Maturity, commencing on such Reset Date, at approximately 11:00 a.m. (London time) on such EUR-

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LIBOR Determination Date and in a Euro Representative Amount. If at least two such quotations are provided, EUR-LIBOR shall be the arithmetic mean (if necessary rounded upwards) of such quotations; and 
(4)  if fewer than two such quotations are provided as requested in clause (3) above, EUR-LIBOR shall be    EUR-LIBOR determined with respect to the Reset Date immediately preceding such Reset Date or, in the case   of the first Reset Date, will be the rate for Deposits in euro having the Index Maturity at 11:00 a.m. (London      time) on the most recent TARGET Business Day preceding the EUR-LIBOR Determination Date for which    such rate was displayed on the Designated EUR-LIBOR Reuters Page for deposits starting on the second TARGET Business Day following such date. 
 
(J)  If the applicable Supplemental Agreement specifies EURIBOR as the applicable Index for determining the rate of interest for the related Variable Rate Debt Security, the following provisions shall apply (unless otherwise specified in  the applicable Supplemental Statement): 
“EURIBOR” shall mean, with respect to a Reset Date (in the following order of priority): 
(1)  the rate (expressed as a percentage per annum) for Deposits in euro having the Index Maturity that appears  on the Designated EURIBOR Reuters Page at 11:00 a.m., Brussels time, on the relevant EURIBOR Determination Date; 
(2)  if such rate does not so appear pursuant to clause (1) above, then the Calculation Agent will request the principal offices of four major banks in the Euro-Zone selected by the Calculation Agent (after consultation    with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) to provide such banks’ offered quotations (expressed as a percentage per annum) to prime banks in the Euro-Zone interbank market for   Deposits in euro having the Index Maturity at 11:00 a.m. Brussels time on such EURIBOR Determination Date and in a Euro Representative Amount. If at least two quotations are provided, EURIBOR for that date will be    the arithmetic mean (if necessary, rounded upwards) of the quotations; 
(3)  if fewer than two such quotations are provided as requested in clause (2) above, EURIBOR for that date    will be the arithmetic mean (if necessary, rounded upwards) of the rates quoted by major banks in the Euro-  Zone, selected by the Calculation Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting  as Calculation Agent), at approximately 11:00 a.m., Brussels time, on the EURIBOR Determination Date for     loans in euro to leading European banks for a period of time corresponding to the Index Maturity and in a Euro Representative Amount. If at least two quotations are provided, EURIBOR for that date will be the arithmetic mean (if necessary, rounded upwards) of the quotations; and 
(4)  if fewer than two quotations are provided as requested in clause (3) above, EURIBOR will be EURIBOR as determined for the immediately preceding Reset Date or, in the case of the first Reset Date, the interest rate payable for the new Interest Reset Period will be the initial interest rate. 
(K)  If the applicable Supplemental Agreement specifies the Prime Rate as the applicable Index for determining the rate of interest for the related Variable Rate Debt Securities, the following provisions shall apply: 
The “Prime Rate” means, with respect to any Reset Date (in the following order of priority): 
(1)  the rate for the Prime Rate Determination Date, as published in H.15(519) Daily Update opposite the   caption “Bank prime loan”; 
(2)  if the rate is not published by 5:00 p.m., New York City time, on the Reset Date pursuant to clause (1), the rate for the Prime Rate Determination Date as published in H.15(519) opposite the caption “Bank prime loan”; 
(3)  if the rate is not published in either H.15(519) or the H.15 Daily Update by 5:00 p.m., New York City time, on the Reset Date, then the Prime Rate will be the arithmetic mean, determined by the Calculation Agent, of the rates (after eliminating certain rates, as described below in this clause (3)) that appear, at 11:00 a.m., New York City time, on the Prime Rate Determination Date, on Reuters USPRIME1 Page as the U.S. dollar prime rate or base lending rate of each bank appearing on that page; provided, that at least three rates appear. In determining the arithmetic mean: 
(i)  if 20 or more rates appear, the highest five rates (or in the event of equality, five of the highest) and  the lowest five rates (or in the event of equality, five of the lowest) will be eliminated, 
(ii)  if fewer than 20 but 10 or more rates appear, the highest two rates (or in the event of equality, two     of the highest) and the lowest two rates (or in the event of equality, two of the lowest) will be eliminated, or 
(iii)  if fewer than 10 but five or more rates appear, the highest rate (or in the event of equality, one of    the highest) and the lowest rate (or in the event of equality, one of the lowest) will be eliminated; 

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(4)  if fewer than three rates so appear on Reuters USPRIME1 Page pursuant to clause (3) above, then the Calculation Agent will request five major banks in the City of New York selected by the Calculation Agent    (after consultation with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) to provide a quotation of such banks’ U.S. dollar prime rates or base lending rates on the basis of the actual number of days   in the year divided by 360 as of the close of business on the Prime Rate Determination Date. If at least three quotations are provided, then the Prime Rate will be the arithmetic mean determined by the Calculation Agent    of the quotations obtained (and, if five quotations are provided, eliminating the highest quotation (or in the    event of equality, one of the highest) and the lowest quotation (or in the event of equality, one of the lowest)); 
(5)  if fewer than three quotations are so provided pursuant to clause (4) above, the Calculation Agent will  request five banks or trust companies organized and doing business under the laws of the United States or any state, each having total equity capital of at least U.S. $500,000,000 and being subject to supervision or examination by federal or state authority, selected by the Calculation Agent (after consultation with Freddie   Mac, if Freddie Mac is not then acting as Calculation Agent), to provide a quotation of such banks’ or trust companies’ U.S. dollar prime rates or base lending rates on the basis of the actual number of days in the year divided by 360 as of the close of business on the Prime Rate Determination Date. In making such selection of  five banks or trust companies, the Calculation Agent will include each bank, if any, that provided a quotation as requested in clause (4) above and exclude each bank that failed to provide a quotation as requested in clause     (4). If at least three quotations are provided, then the Prime Rate will be the arithmetic mean determined by the Calculation Agent of the quotations obtained; and 
(6)  if fewer than three quotations are so provided pursuant to clause (5) above, then the Prime Rate will be the Prime Rate determined for the immediately preceding Reset Date. If the applicable Reset Date is the first Reset Date, then the Prime Rate will be the rate calculated pursuant to clause (1) or (2) for the most recent New York Banking Day preceding the Reset Date for which such rate was published in H.15(519) or H.15 Daily Update. 
 
(L)  If the applicable Supplemental Agreement specifies the Treasury Rate as the applicable Index for determining the rate of interest for the related Variable Rate, the following provisions shall apply: 
The “Treasury Rate” means, with respect to any Reset Date (in the following order of priority): 
(1)  the rate for the Treasury Determination Date of Treasury Bills having the Index Maturity, as published in H.15 Daily Update under the caption “U.S. government securities/Treasury bills/(secondary market)”; 
(2)  if the rate described in clause (1) above does not appear in H.15 Daily Update by 5:00 p.m., New York City time, on the Reset Date, then the rate for the Treasury Rate Determination Date of Treasury Bills having the  Index Maturity, as published in the H.15 (519), or other recognized electronic source used for the purpose of displaying that rate under the caption “U.S. government securities/Treasury bills (secondary market)”; 
(3)  if the rate described in clause (2) above is not so published by 3.00 p.m., New York City time, on the Reset                 Date, then the rate from Treasury Auction of Treasury Bills having the Index Maturity, as that rate appears                         under the caption “INVEST RATE” on the display on Reuters USAUCTION10 Page or Reuters                                 USAUCTION11 Page; 
(4)  if the rate described in clause (3) above is not published by 5:00 p.m., New York City time, on the Reset  Date, then the auction average rate for Treasury Bills having the Index Maturity obtained from the applicable Treasury Auction as announced by the Treasury Department in the form of a press release under the heading “Investment Rate” by 5:00 p.m. on such Reset Date; 
(5)  if the rate describe in clause (4) above is not so announced by the Treasury Department by 5:00 p.m., New York City time, on the Reset Date, then auction average rate obtained from the Treasury Auction of the  applicable Treasury Bills, as otherwise announced by the Treasury Department by 5:00 p.m., New York City  time, on the Reset Date as determined by the Calculation Agent; 
(6)  if such rate described in clause (5) is not so announced by the Treasury Department by 5:00 p.m., New     York City time, on the Reset Date, the Calculation Agent will request five leading primary United States government securities dealers in the City of New York selected by the Calculation Agent (after consultation         with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) to provide a quotation of such               dealers’ secondary market bid yields, as of 3:00 p.m. on the Reset Date, for Treasury Bills with a remaining maturity closest to the Index Maturity (or, in the event that the remaining maturities are equally close, the                  longer remaining maturity). If at least three quotations are provided, then the Treasury Rate will be the                 arithmetic mean determined by the Calculation Agent of the quotations obtained; and 
(7)  if fewer than three quotations are so provided pursuant to clause (6) above, then the Treasury Rate for the immediately preceding Reset Date. If the applicable Reset Date is the first Reset Date, then the auction average rate for Treasury Bills having the Index Maturity from the most recent auction of Treasury Bills prior to the   

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Reset Date for which such rate was announced by the Treasury Department in the form of a press release under the heading “Investment Rate.” 
 
The rate (including the auction average rate) for Treasury Bills and the secondary market bid yield for Treasury Bills   will be obtained and expressed as a bond equivalent on the basis of a year of 365 or 366 days, as applicable (or, if not so expressed, will be converted by the Calculation Agent to such a bond equivalent yield). 
(M)  If the applicable Supplemental Agreement specifies the CMT Rate as the applicable Index for determining the rate of interest for the related Variable Rate, the following provisions shall apply: 
The “CMT Rate” means, with respect to any Reset Date (in the following order of priority): 
(1)  for any CMT Determination Date, the daily rate for the Index Maturity that appears on page “FRBCMT” on Reuters (or any other page that replaces the FRBCMT page on that service or any successor service) under the heading “...Treasury Constant Maturities. Federal Reserve Board Release H.15...Mondays Approximately 3:45 p.m.”; 
(2)  if the applicable rate described in clause (1) is not displayed on Reuters page FRBCMT at 3:45 p.m., New York City time, on the CMT Determination Date, then the CMT Rate will be the Treasury constant maturity     rate for the Index Maturity applicable for the CMT Determination Date as published in H.15 (519); 
(3)  if the CMT Rate is not determined pursuant to clause (1) and the applicable rate described in clause (2)     does not appear in H.15 (519) at 3:45 p.m., New York City time, on the CMT Determination Date, then the    CMT Rate will be the Treasury constant maturity rate, or other U.S. Treasury rate, applicable to an Index  Maturity with reference to the CMT Determination Date, that: 
(i)  is published by the Federal Reserve or the Treasury Department; and 
(ii)  Freddie Mac has determined to be comparable to the applicable rate formerly displayed on Reuters page 7051 and published in H.15 (519); 
(4)  if the CMT Rate is not determined pursuant to clause (1) or (2) and the rate described in clause (3) above does not appear at 3:45 p.m., New York City time, on the CMT Determination Date, then the CMT Rate will be the yield to maturity of the arithmetic mean of the secondary market offered rates for U.S. Treasury securities with an original maturity of approximately the Index Maturity and a remaining term to maturity of no more than one year shorter than the Index Maturity, and in a Representative Amount, as of approximately 3:45 p.m., New York City time, on the CMT Determination Date, as quoted by three primary U.S. government securities     dealers in New York City that Freddie Mac selects. In selecting these offered rates, Freddie Mac will request quotations from five primary dealers and will disregard the highest quotation or, if there is equality, one of the highest and the lowest quotation or, if there is equality, one of the lowest. If two U.S. Treasury securities with    an original maturity longer than the Index Maturity have remaining terms to maturity that are equally close to   the Index Maturity, Freddie Mac will obtain quotations for the U.S. Treasury security with the shorter     remaining term to maturity; 
(5)  if the CMT Rate is not determined pursuant to clause (1), (2) or (3) and fewer than five but more than two primary dealers are quoting offered rates as described in clause (4), then the CMT Rate for the CMT Determination Date will be based on the arithmetic mean of the offered rates so obtained, and neither the    highest nor the lowest of those quotations will be disregarded; 
 
(6)  if the CMT Rate is not determined pursuant to clause (1), (2), (3) or (4) and two or fewer primary dealers    are quoting offered rates as described in clause (5), then the CMT Rate will be the yield to maturity of the arithmetic mean of the secondary market offered rates for U.S. Treasury securities having an original maturity longer than the Index Maturity and a remaining term to maturity closest to the Index Maturity, and in a Representative Amount, as of approximately 3:45 p.m., New York City time, on the CMT Determination Date,   as quoted by three primary U.S. government securities dealers in New York City that Freddie Mac selects. In selecting these offered rates, Freddie Mac will request quotations from five primary dealers and will disregard  the highest quotation, or, if there is equality, one of the highest and the lowest quotation or, if there is equality, one of the lowest; 
(7)  if the CMT Rate is not determined pursuant to clauses (1) through (6) above and fewer than five but more than two primary dealers are quoting offered rates as described in clause (6), then the CMT Rate for the CMT Determination date will be based on the arithmetic mean of the offered rates so obtained, and neither the     highest nor the lowest of those quotations will be disregarded; and 
(8)  if the Calculation Agent obtains fewer than three quotations of the kind described in clause (6), the CMT  Rate in effect for the new Interest Reset Period will be the CMT Rate in effect for the prior Interest Rate Period,         

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or if the applicable Reset Date is the first Reset Date, the rate of interest payable for the new Interest Reset  Period will be the initial interest rate. 
(N)  If the applicable Supplemental Agreement specifies the CMS Rate as the applicable Index for determining the rate  of interest for the related Variable Rate, the following provisions shall apply: 
The “CMS Rate” means, with respect to any Reset Date: 
(1)  the most recent rate for U.S. dollar swap transactions for the applicable Index Currency and applicable   Index Maturity, as specified in the applicable Supplemental Agreement for the Debt Securities, expressed as a percentage, which appears on the Reuters page “ISDAFIX1” (or such other page that may replace that page on that service or a successor service) at 11:00 a.m., New York City time, on the applicable CMS Determination Date; 
(2)  if the most recent CMS Rate as described in clause (1) above was first available prior to ten calendar days before the applicable CMS Determination Date, then the CMS Rate will be determined by the Calculation    Agent on the basis of the mid-market semi-annual swap rate quotations provided by the five leading swaps dealers in the New York City interbank market (which may include Dealers and their affiliates), and for this purpose, “mid-market semi-annual swap rate” means the arithmetic mean of the bid and offered rate quotations for the semi-annual fixed leg, calculated on a 30/360 day count basis, of a fixed-for-floating United States   dollars denominated interest rate swap transaction with the applicable Index Currency and Index Maturity, as specified in the applicable Supplemental Agreement for the Debt Securities, commencing on the Reset Date for the relevant Interest Period, and for a relevant representative amount in the relevant market at the relevant time, with an acknowledged dealer of good credit in the swap market, where the floating leg, calculated on an Actual/360 day count basis, is equivalent to USD-LIBOR-BBA (as defined in the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc.) with a designated maturity of three months. The Calculation Agent will request the principal New York City office of each of the five leading    swaps dealers selected by the Calculation Agent to provide a quotation of its rate. If at least five quotations are provided, the rate for that CMS Determination Date will be the arithmetic mean of the quotations, eliminating    the highest quotation (or, in the event of equality, one of the highest) and the lowest quotation (or, in the event    of equality, one of the lowest); 
(3)  if two, three or four (and not five) of such swaps dealers are quoting as described in clause (2) above, then  the CMS Rate will be based on the arithmetic mean of the bid prices obtained and neither the highest nor lowest       of such quotations will be eliminated; and 
(4)  if fewer than two rate quotations are provided, then the CMS Rate for the Reset Date will be the CMS Rate  in effect on the preceding Reset Date, or if the applicable Reset Date is the first Reset Date, the rate of interest payable for the new Interest Reset Period will be the initial interest rate. 
(O)  If the applicable Supplemental Agreement specifies the Federal Funds Rate (Daily) as the applicable Index for determining the rate of interest for the related Variable Rate, the following provisions shall apply: 
The “Federal Funds Rate (Daily)” means, with respect to any Reset Date: 
(1)  the rate for the Business Day preceding the Federal Funds Rate (Daily) Determination Date for U.S. dollar federal funds, as published in the latest H.15 Daily Update opposite the caption “Federal funds (effective)”; 
(2)  if the rate specified in clause (1) is not published by 5:00 p.m., New York City Time, on the Federal Funds Rate (Daily) Determination Date, the Federal Funds Rate (Daily) will be the rate for that Fed Funds Rate    (Daily) Determination Date as published in the H.15 Daily Update, or other recognized electronic source used    for the purpose of displaying the applicable rate, opposite the caption “Federal funds (effective)”; 
(3)  if the rate specified in clause (2) is not published by 5:00 p.m., New York City time, on the Federal Funds Rate Determination Date, then the Calculation Agent will request five leading brokers (which may include the related Dealers or their affiliates) of federal funds transactions in the City of New York selected by the Calculation Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) each to provide a quotation of the broker’s effective rate for transactions in overnight federal funds arranged by the broker settling on the Business Day preceding the Federal Funds Rate (Daily) Determination Date. If at     least two quotations are provided, then the Federal Funds Rate (Daily) will be the arithmetic mean determined    by the Calculation Agent of the quotations obtained (and, if five quotations are provided, eliminating the     highest quotation (or, in the event of equality, one of the highest) and the lowest quotation (or, in the event of equality, one of the lowest)); 
(4)  if fewer than two quotations are so provided pursuant to clause (3) above, then the Calculation Agent will request five leading brokers (which may include the related Dealers or their affiliates) of federal funds 

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transactions in the City of New York selected by the Calculation Agent (after consultation with Freddie Mac, if Freddie Mac is not then acting as Calculation Agent) each to provide a quotation of the broker’s rates for the    last transaction in overnight federal funds arranged by the broker as of 11:00 a.m., New York City time, on the Business Day preceding the Federal Funds Rate (Daily) Determination Date. If at least two quotations are provided, then the Federal Funds Rate (Daily) will be the arithmetic mean determined by the Calculation Agent  of the quotations obtained (and, if five quotations are provided, eliminating the highest quotation (or, in the   event of equality, one of the highest) and the lowest quotation (or, in the event of equality, one of the lowest)); and 
(5)  if fewer than two quotations are so provided pursuant to clause (4) above, then the Federal Funds Rate (Daily) as of such Federal Funds Rate (Daily) Determination Date will be the Federal Funds Rate (Daily) determined for the immediately preceding Reset Date. If the applicable Reset Date is the first Reset Date, then  the rate of interest payable for the new Interest Rate Period will be the initial interest rate. 
(P)  If the applicable Supplemental Agreement specifies the Federal Funds Rate (Weekly Average) as the applicable  Index for determining the rate of interest for the related Variable Rate, the following provisions shall apply: 
The “Federal Funds Rate (Weekly Average)” means, with respect to any Reset Date: 
(1)  the most recent rate published in the latest H.15(519) available by 5:00 p.m., New York City time, on the Reset Date, opposite the caption “Federal funds (effective)” and under the caption “Week Ending” for the    Friday immediately preceding the Reset Date. (As described in the footnotes to the H.15(519), the rate shown   for the week ending on a Friday preceding a Reset Date actually will be the rate for the week ending on (and including) the Wednesday preceding the Reset Date (the “Seven-Day Period”)); 
(2)  if a rate is not so published pursuant to clause (1) above, then the Federal Funds Rate (Weekly Average)     will be the arithmetic mean determined by the Calculation Agent of the rate, determined in the manner    described in subclauses (y) and (z) below (as applicable), for each day in the Seven-Day Period (each a “Day Rate”); provided, that the Calculation Agent determines a Day Rate for each day in the Seven-Day Period; 
(y)  The Day Rate for a Business Day will be the rate that is published, by 5:00 p.m., New York City   time, on the Reset Date, in the H.15 Daily Update or other recognized electronic source used for the purpose of displaying the applicable rate, opposite the caption “Federal funds (effective)” for that Business Day. If a rate for that Business Day does not appear on H.15 Daily Update by 5:00 p.m., New York City time, on the Reset Date, the Calculation Agent will request five leading brokers (which may include the related Dealers or their affiliates) of federal funds transactions in the City of New York selected by the Calculation Agent (after consultation with Freddie Mac, if Freddie Mac is not then     acting as Calculation Agent) each to provide a quotation of the broker’s rate for the last transaction in overnight federal funds arranged by the broker as of 11:00 a.m. on that Business Day. If at least two quotations are provided, then the Day Rate will be the arithmetic mean determined by the Calculation Agent of the quotations obtained (and, if five quotations are provided, eliminating the highest quotation (or, in the event of equality, one of the highest) and the lowest quotation (or, in the event of equality,     one of the lowest)); and 
(z)  The Day Rate for a day other than a Business Day will be the rate for the preceding Business Day, whether or not the Business Day falls within the relevant Seven-Day Period, determined in accordance with the provisions of subclause (y) above; and 
(3)  if the Day Rate for each day in the Seven-Day Period is not so determined pursuant to either clause (1) or (2) above, then the Federal Funds Rate (Weekly Average) as of such Reset Date will be the Federal Funds Rate (Weekly Average) determined for the immediately preceding Reset Date. If the applicable Reset Date is the     first Reset Date, then the rate of interest payable for the new Interest Reset Period will be the initial interest     rate. 
(j)  Fixed/Variable Rate Debt Securities 
Fixed/Variable Rate Debt Securities shall bear interest at a single fixed rate for one or more specified periods and at a  rate determined by reference to one or more Indices, or otherwise, for one or more other specified periods. Fixed/Variable   Rate Debt Securities also may bear interest at a rate that Freddie Mac may elect to convert from a fixed rate to a variable rate  or from a variable rate to a fixed rate, if so provided in the applicable Supplemental Agreement. 
If Freddie Mac may convert the interest rate on a Fixed/Variable Rate Debt Security from a fixed rate to a variable rate,  or from a variable rate to a fixed rate, accrued interest for each Interest Payment Period may be calculated using an accrued interest factor in the manner described in Section 2.07(i)(E). 
(k)  Zero Coupon Debt Securities 

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Zero Coupon Debt Securities shall not bear interest. 
(l)  Amortizing Debt Securities 
Amortizing Debt Securities are those on which Freddie Mac makes periodic payments of principal during the terms of such Debt Securities as described in the related Supplemental Agreement. Amortizing Debt Securities may bear interest at  fixed or variable rates. 
(m)  Debt Securities with Variable Principal Repayment Amounts 
Variable Principal Repayment Amount Debt Securities are those on which the amount of principal payable is    determined with reference to an Index specified in the related Supplemental Agreement. 
(n)  Mortgage Linked Amortizing Debt Securities 
Mortgage Linked Amortizing Debt Securities are Amortizing Debt Securities on which Freddie Mac makes periodic payments of principal based on the rate of payments on referenced mortgage or mortgage-related assets, as described in the related Supplemental Agreement. Mortgage Linked Amortizing Debt Securities may bear interest at fixed or variable rates. 
(o)  Range Accrual Debt Securities 
Range Accrual Debt Securities are Variable Rate Debt Securities on which no interest may accrue during periods when the applicable Index is outside a specified range as described in the related Supplemental Agreement. 
(p)  Extendible Variable Rate Debt Securities 
Extendible Variable Rate Debt Securities’ are Variable Rate Debt Securities, the maturity of which may be extended at     a Beneficial Owner’s option effective as of specified dates, subject to a final maturity date, and that bear interest at variable rates subject to different Spreads for different specified periods, as described in the related Supplemental Agreement. 
Section 2.08. Business Day Convention. 
Unless otherwise specified in the applicable Supplemental Agreement, in any case in which an Interest Payment Date     or Principal Payment Date is not a Business Day, payment of any interest on or the principal of the Debt Securities shall not   be made on such date but shall be made on the next Business Day with the same force and effect as if made on such Interest Payment Date or Principal Payment Date, as the case may be. Unless otherwise provided in the applicable Supplemental Agreement, no interest on such payment shall accrue for the period from and after such Interest Payment Date or Principal Payment Date, as the case may be, to the actual date of such payment. 
Section 2.09. Reopened Issues and Repurchases. 
Freddie Mac reserves the right, in its discretion and at any time, to offer additional Debt Securities which have the     same terms (other than Issue Date, interest commencement date and issue price) and conditions as Debt Securities for which settlement has previously occurred or been scheduled so as to form a single series of Debt Securities as specified in the applicable Supplemental Agreement. 
Freddie Mac reserves the right, in its discretion and at any time, to purchase Debt Securities or otherwise acquire     (either for cash or in exchange for securities) some or all of an issue of Debt Securities at any price or prices in the open  market or otherwise. Such Debt Securities may be held, resold or canceled by Freddie Mac. 
ARTICLE III 
Form; Clearance and Settlement Procedures 
Section 3.01. Form of Fed Book-Entry Debt Securities. 
(a)  General 
Fed Book-Entry Debt Securities shall be issued and maintained only on the Fed Book-Entry System. Fed Book-Entry Debt Securities shall not be exchangeable for definitive Debt Securities. The Book-Entry Rules are applicable to Fed Book-Entry Debt Securities. 
(b)  Title 
Fed Book-Entry Debt Securities shall be held of record only by Holding Institutions. Such entities whose names appear on the book-entry records of a Federal Reserve Bank as the entities to whose accounts Fed Book-Entry Debt Securities have been deposited shall be the Holders of such Fed Book-Entry Debt Securities. The rights of the Beneficial Owner of a Fed  Book-Entry Debt Security with respect to Freddie Mac and the Federal Reserve Banks may be exercised only through the Holder of the Fed Book-Entry Debt Security. Freddie Mac and the Federal Reserve Banks shall have no direct obligation to a Beneficial Owner of a Fed Book-Entry Debt Security that is not also the Holder of the Fed Book-Entry Debt Security. The 

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Federal Reserve Banks shall act only upon the instructions of the Holder in recording transfers of a Debt Security maintained on the Fed Book-Entry System. Freddie Mac and the Federal Reserve Banks may treat the Holders as the absolute owners of Fed Book-Entry Debt Securities for the purpose of making payments in respect thereof and for all other purposes, whether or not such Fed Book-Entry Debt Securities shall be overdue and notwithstanding any notice to the contrary. 
The Holders and each other financial intermediary holding such Fed Book-Entry Debt Securities directly or indirectly   on behalf of the Beneficial Owners shall have the responsibility of remitting payments for the accounts of their customers.     All payments on Fed Book-Entry Debt Securities shall be subject to any applicable law or regulation. 
 
(c)  Fiscal Agent 
The FRBNY shall be the Fiscal Agent for Fed Book-Entry Debt Securities. 
In acting under the Fiscal Agency Agreement, the FRBNY shall act solely as Fiscal Agent of Freddie Mac and does not assume any obligation or relationship of agency or trust for or with any Holder of a Fed Book-Entry Debt Security. 
Section 3.02. Form of Registered Debt Securities. 
(a)  General 
As specified in the applicable Supplemental Agreement, Registered Debt Securities shall be deposited with (i) a  custodian for, and registered in the name of a nominee of, DTC, or (ii) a Common Depositary, and registered in the name of such Common Depositary or a nominee of such Common Depositary. 
(b)  Title 
The person in whose name a Registered Debt Security is registered in the Register shall be the Holder of such   Registered Debt Security. Beneficial interests in a Registered Debt Security shall be represented, and transfers thereof shall     be effected, only through book-entry accounts of financial institutions acting on behalf of the Beneficial Owners of such Registered Debt Security, as a direct or indirect participant in the applicable clearing system for such Registered Debt   Security. 
Freddie Mac, the Global Agent and the Registrar may treat the Holders as the absolute owners of Registered Debt Securities for the purpose of making payments and for all other purposes, whether or not such Registered Debt Securities    shall be overdue and notwithstanding any notice to the contrary. Owners of beneficial interests in a Registered Debt Security shall not be considered by Freddie Mac, the Global Agent or the Registrar as the owner or Holder of such Registered Debt Security and, except as provided in Section 4.02(a), shall not be entitled to have Debt Securities registered in their names and shall not receive or be entitled to receive definitive Debt Securities. Any Beneficial Owner shall rely on the procedures of the applicable clearing system and, if such Beneficial Owner is not a participant therein, on the procedures of the participant through which such Beneficial Owner holds its interest, to exercise any rights of a Holder of such Registered Debt Securities. 
Payments by DTC participants to Beneficial Owners of DTC Registered Debt Securities held through DTC participants shall be the responsibility of such participants. Payments with respect to Other Registered Debt Securities held through Euroclear, Clearstream, Luxembourg or any other applicable clearing system shall be credited to Euroclear participants, Clearstream, Luxembourg participants or participants of any other applicable clearing system in accordance with the relevant system’s rules and procedures. 
(c)  Global Agent 
In acting under the Global Agency Agreement, the Global Agent acts solely as a fiscal agent of Freddie Mac and does   not assume any obligation or relationship of agency or trust for or with any Holder of a Registered Debt Security, except that any moneys held by the Global Agent for payment on a Registered Debt Security shall be held in trust for the Holder as provided in the Global Agency Agreement. 
 
(d)  Registrar 
In acting under the Global Agency Agreement, the Registrar does not assume any obligation or relationship of agency    or trust for, or with, any Holder of a Registered Debt Security. 
Section 3.03. Clearance and Settlement Procedures. 
(a)  General 
Unless otherwise provided in the applicable Supplemental Agreement: 
(i)  Most Debt Securities distributed within the United States shall clear and settle through the Fed Book-Entry System. 
(ii)  Most Debt Securities distributed simultaneously within and outside of the United States, including all Reference Securities, shall clear and settle, within the United States, through the Fed Book-Entry System and, outside of the   

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United States, through the systems operated by Euroclear, Clearstream, Luxembourg and/or any other designated  clearing system. 
(iii) Debt Securities that are not cleared and settled in accordance with clause (i) and (ii) above and distributed solely within the United States will clear and settle through the system operated by DTC. 
(iv)  Debt Securities distributed solely outside of the United States shall clear and settle through the systems operated    by Euroclear, Clearstream, Luxembourg and/or any other designated clearing system or, in certain cases, DTC. 
(b)  Primary Distribution 
(i)  General.    On initial issue, Debt Securities shall be credited through one or more of the systems specified below or any other system specified in the applicable Supplemental Agreement. 
(ii)   Federal Reserve Banks.    Fed Book-Entry Debt Securities shall be issued and settled through the Fed-Book-Entry System in same-day funds and shall be held by designated Holding Institutions. After initial issue, all Fed Book-Entry Debt Securities shall continue to be held by such Holding Institutions in the Fed Book-Entry System unless  arrangements are made for the transfer thereof to another Holding Institution. Fed Book-Entry Debt Securities shall not be exchangeable for definitive Debt Securities. 
(iii)   DTC.    DTC participants acting on behalf of investors holding DTC Registered Debt Securities through DTC    shall follow the delivery practices applicable to securities eligible for DTC’s Same-Day Funds Settlement System.              DTC Registered Debt Securities shall be credited to DTC participants’ securities accounts following confirmation of receipt of payment to Freddie Mac on the relevant Issue Date. 
(iv)  Euroclear and Clearstream, Luxembourg.    Investors holding Other Registered Debt Securities through     Euroclear, Clearstream, Luxembourg or such other clearing system shall follow the settlement procedures applicable to conventional Eurobonds in registered form. Such Other Registered Debt Securities shall be credited to Euroclear, Clearstream, Luxembourg or such other clearing system participants’ securities accounts either on the relevant Issue  Date or on the settlement day following the relevant Issue Date against payment in same-day funds (for value on the relevant Issue Date). 
 
(c)  Secondary Market Transfers 
(i)   Fed Book-Entry Debt Securities.    Transfers of Fed Book-Entry Debt Securities shall take place only in book-entry form on the Fed Book-Entry System. Such transfers shall occur between Holding Institutions in accordance with the  rules of the Fed Book-Entry System. 
(ii)   Registered Debt Securities.    Transfers of beneficial interests in Registered Debt Securities within the various systems that may be clearing and settling interests therein shall be made in accordance with the usual rules and   operating procedures of the relevant system applicable to the Registered Debt Securities and the nature of the transfer. 
(iii)  Freddie Mac shall not bear responsibility for the performance by any system or the performance of the system’s respective direct or indirect participants or accountholders of the respective obligations of such participants or account holders under the rules and procedures governing such system’s operations. 
ARTICLE IV 
Payments, Exchange for Definitive Debt Securities 
Section 4.01. Payments. 
(a)  Payments on Fed Book-Entry Debt Securities 
Payments of principal of and any interest on Fed Book-Entry Debt Securities shall be made in U.S. dollars on the applicable payment dates to Holders thereof as of the end of the Business Day preceding each such payment date. Payments   on Fed Book-Entry Debt Securities shall be made by credit of the payment amount to the Holders’ accounts at the relevant Federal Reserve Bank. All payments to or upon the order of a Holder shall be valid and effective to discharge the liability of Freddie Mac and the Fiscal Agent in respect of the related Fed Book-Entry Debt Securities. 
(b)  Payments on Registered Debt Securities 
(i)  Payments in respect of Registered Debt Securities shall be made in immediately available funds to DTC, Euroclear, Clearstream, Luxembourg or any other applicable clearing system, or their respective nominees, as the case may be, as the Holders thereof. Such payments shall be made in U.S. Dollars. All payments to or upon the order of the Holder of a Registered Debt Security shall be valid and effective to discharge the liability of Freddie Mac in respect of such Registered Debt Security. Ownership positions within each system shall be determined in accordance with the normal conventions observed by such system. Freddie Mac, the Global Agent and the Registrar shall not have any    responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership 

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interests in a Registered Debt Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 
(ii)  Interest on a Registered Debt Security shall be paid on the applicable Interest Payment Date. Such interest payment shall be made to the Holder of such Registered Debt Security as of the close of business on the related Record Date.    The first payment of interest on any Registered Debt Security originally issued between a Record Date and the related Interest Payment Date shall be made on the Interest Payment Date following the next Record Date to the Holder on    such next Record Date. The principal of each Registered Debt Security, together with accrued and unpaid interest thereon, shall be paid to the Holder thereof against presentation and surrender of such Registered Debt Security. 
(iii)  All payments on Registered Debt Securities are subject to any applicable law or regulation. If a payment outside   the United States is illegal or effectively precluded by exchange controls or other similar restrictions, payments in  respect of the related Registered Debt Securities shall be made at the office of any paying agent in the United States. 
Section 4.02. Exchange for Definitive Debt Securities. 
In the event that Freddie Mac issues definitive Debt Securities in exchange for Registered Debt Securities issued in global form, such definitive Debt Securities shall have terms identical to the Registered Debt Securities for which they were exchanged except as described below. 
(a)  Issuance of Definitive Debt Securities 
Unless otherwise provided in the applicable Supplemental Agreement, beneficial interests in Registered Debt Securities issued in global form shall be subject to exchange for definitive Debt Securities only if such exchange is permitted by applicable law and (i) in the case of a DTC Registered Debt Security, DTC notifies Freddie Mac that it is no longer willing or able to discharge properly its responsibilities as depositary with respect to such DTC Registered Debt Security, or ceases to    be a “clearing agency” registered under the Securities Exchange Act of 1934 (if so required), or is at any time no longer  eligible to act as such, and in each case Freddie Mac is unable to locate a successor within 90 calendar days of receiving    notice of such ineligibility on the part of DTC; (ii) in the case of any Other Registered Debt Security, if all of the systems through which it is cleared or settled are closed for business for a continuous period of 14 calendar days (other than by reason of holidays, statutory or otherwise) or are permanently closed for business or have announced an intention permanently to  cease business and in any such situations Freddie Mac is unable to locate a single successor within 90 calendar days of such closure; or (iii) an Event of Default has occurred and continues unremedied. In such circumstances, Freddie Mac shall cause sufficient definitive Debt Securities to be executed and delivered as soon as practicable (and in any event within 45 calendar days of Freddie Mac’s receiving notice of the occurrence of such circumstances) to the Global Agent or its agent for completion, authentication and delivery to the relevant registered holders of such definitive Debt Securities. A person having  an interest in a DTC Registered Debt Security or Other Registered Debt Security issued in global form shall provide Freddie Mac or the Global Agent with a written order containing instructions and such other information as Freddie Mac or the    Global Agent may require to complete, execute and deliver such definitive Debt Securities in authorized denominations. 
(b)  Title 
The person in whose name a definitive Debt Security is registered in the Register shall be the “Holder” of such  definitive Debt Security. Freddie Mac, the Global Agent and the Registrar may treat the Holders as the absolute owners of definitive Debt Securities for the purpose of making payments and for all other purposes, whether or not such definitive Debt Securities shall be overdue and notwithstanding any notice to the contrary. 
(c)  Payments 
Interest on a definitive Debt Security shall be paid on the applicable Interest Payment Date. Such interest payments    shall be made by check mailed to the Holder thereof at the close of business on the Record Date preceding such Interest Payment Date at such Holder’s address appearing in the Register. The principal of each definitive Debt Security, together    with accrued and unpaid interest thereon, shall be due on the Principal Payment Date (subject to the right of the Holder   thereof on the related Record Date to receive interest due on an Interest Payment Date that is on or prior to such Principal Payment Date) and shall be paid against presentation and surrender of such definitive Debt Security at the offices of the   Global Agent or other paying agent. Payments on the Principal Payment Date shall be made by check provided at the appropriate office of the Global Agent or other paying agent or mailed by the Global Agent to the Holder of such definitive Debt Security. Checks shall be in U.S. dollars and shall be drawn on a bank in the United States. 
Notwithstanding the provisions described in the preceding paragraph relating to payments by check, the Holder of an aggregate principal amount of at least $10,000,000 of an issue of Debt Securities of which definitive Debt Securities form a part may elect to receive payments thereon by wire transfer of immediately available funds in U.S. Dollars to an account with  a bank designated by such Holder that is acceptable to Freddie Mac; provided, that such bank has appropriate facilities   therefor and accepts such transfer and such transfer is permitted by any applicable law or regulation and will not subject Freddie Mac to any liability, requirement or unacceptable charge. In order for such Holder to receive such payments, the 

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relevant paying agent (including the Global Agent) must receive at its office from such Holder (i) in the case of payments on  an Interest Payment Date, a written request therefor not later than the close of business (a) on the related Record Date in the case of a definitive Debt Security or (b) 15 days prior to such Interest Payment Date in the case of a Registered Debt Security issued in the global form; or (ii) in the case of payments on the Principal Payment Date, a written request therefor not later  than the close of business on the date 15 days prior to such Principal Payment Date and the related definitive Debt Security   not later than two Business Days prior to such Principal Payment Date. Such written request must be delivered to the relevant paying agent (including the Global Agent) by mail, by hand delivery or by tested or authenticated telex. Any such request   shall remain in effect until the relevant paying agent receives written notice to the contrary. 
All payments on definitive Debt Securities shall be subject to any applicable law or regulation. If a payment outside the United States is illegal or effectively precluded by exchange controls or similar restrictions, payments in respect of the related definitive Debt Securities may be made at the office of any paying agent in the United States. 
(d)  Partial Redemption 
Definitive Debt Securities subject to redemption in part by Freddie Mac shall be selected by the Global Agent by lot or  in such other manner as the Global Agent deems fair and appropriate, subject to the requirement that the principal amount of each outstanding definitive Debt Security after such redemption is in an authorized denomination. 
(e)  Transfer and Exchange 
Definitive Debt Securities shall be presented for registration of transfer or exchange (with the form of transfer included thereon properly endorsed, or accompanied by a written instrument of transfer, with such evidence of due authorization and guaranty of signature as may be required by the Registrar, duly executed) at the office of the Registrar or any other transfer agent upon payment of any taxes and other governmental charges and other amounts, but without payment of any service charge to the Registrar or such transfer agent for such transfer or exchange. A transfer or exchange shall not be effective  unless, and until, recorded in the Register. 
 
A transfer or exchange of a definitive Debt Security shall be effected upon satisfying the Registrar with regard to the documents and identity of the person making the request and subject to such reasonable regulations as Freddie Mac may from time to time agree with the Registrar. Such documents may include forms prescribed by U.S. tax authorities to establish the applicability of, or the exemption from, withholding or other taxes regarding the transferee Holder. Definitive Debt Securities may be transferred or exchanged in whole or in part only in the authorized denominations of the DTC Registered Debt Securities or Other Registered Debt Securities issued in global form for which they were exchanged. In the case of a transfer   of a definitive Debt Security in part, a new definitive Debt Security in respect of the balance not transferred shall be issued to the transferor. In addition, replacement of mutilated, destroyed, stolen or lost definitive Debt Securities also is subject to the conditions discussed above with respect to transfers and exchanges generally. Each new definitive Debt Security to be issued upon transfer of such a definitive Debt Security, as well as the definitive Debt Security issued in respect of the balance not transferred, shall be mailed to such address as may be specified in the form or instrument of transfer at the risk of the Holder entitled thereto in accordance with the customary procedures of the Registrar. 
ARTICLE V 
Secured Debt Securities 
If so provided in the applicable Supplemental Agreement, the indebtedness represented by certain Debt Securities shall  be secured obligations of Freddie Mac. In such event, the description of the security interest and the terms of the grant of the security interest shall be set forth in the applicable Supplemental Agreement. 
ARTICLE VI 
[RESERVED] 
ARTICLE VII 
Events of Default and Remedies 
Section 7.01. Events of Default. 
(a)  An “Event of Default” with respect to a specific issue of Debt Securities shall consist of (i) any failure by Freddie Mac to pay to Holders of such Debt Securities any required payment that continues unremedied for 30 days; (ii) any failure    by Freddie Mac to perform in any material respect any other covenant or agreement in this Agreement, which failure   continues unremedied for 60 days after the giving of notice of such failure to Freddie Mac by the Holders of not less than    25% of the outstanding principal amount (or notional principal amount) of such Debt Securities; (iii) a court having  jurisdiction in the premises shall enter a decree or order for relief in respect of Freddie Mac in an involuntary case under any 

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applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoint a receiver, liquidator, assignee, custodian, or sequestrator (or other similar official) of Freddie Mac or for all or substantially all of its property, or order the winding up or liquidation of its affairs, and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or (iv) Freddie Mac shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, or sequestrator (or other similar official) of Freddie Mac or any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due. 
The appointment of a conservator (or other similar official) by a regulator having jurisdiction over Freddie Mac,                         whether or not Freddie Mac consents to such appointment, will not constitute an Event of Default. Any payment made in                     U.S. dollars as provided under Section 2.03(c)(ii) shall not constitute an Event of Default. 
Section 7.02. Rights Upon Event of Default. 
(a)  As long as an Event of Default under this Agreement remains unremedied, Holders of not less than 50% of the outstanding principal amount (or notional principal amount) of an issue of Debt Securities to which such Event of Default relates may, by written notice to Freddie Mac, declare such Debt Securities due and payable and accelerate the maturity of  such Debt Securities. Upon such acceleration, the principal amount of such Debt Securities and the interest accrued thereon shall be due and payable. 
(b)  No Holder has any right under this Agreement to institute any action or proceeding at law or in equity or in bankruptcy or otherwise, or for the appointment of a receiver or trustee, or for any other remedy, unless (i) such Holder previously has given to Freddie Mac written notice of an Event of Default and of the continuance thereof; (ii) the Holders of not less than 50% of the outstanding principal amount (or notional principal amount) of an issue of Debt Securities to which such Event of Default relates have given written notice to Freddie Mac of such Event of Default; and (iii) such Event of  Default continues uncured for a period of 60 days following such notice. No Holder of an issue of Debt Securities has any  right in any manner whatsoever by virtue of or by availing itself of any provision of this Agreement to affect, disturb or prejudice the rights of any other such Holder, or to obtain or seek to obtain preference or priority over any other such Holder   or to enforce any right under this Agreement, except in the manner provided in this Agreement and for the ratable and   common benefit of all such Holders. 
(c)  Prior to or after the institution of any action or proceeding relating to an issue of Debt Securities, the Holders of not less than 50% of the outstanding principal amount (or notional principal amount) of such Debt Securities may waive an Event of Default, whether or not it has resulted in a declaration of an acceleration of the maturity of such Debt Securities, and may rescind and annul any previously declared acceleration. 
(d)  Whenever in this Agreement it is provided that the Holders of a specified percentage in outstanding principal   amount (or notional principal amount) of an issue of Debt Securities may take any action (including the making of any   demand or request, or the giving of any authorization, notice, consent or waiver), the fact that at the time of taking any such action the Holders of such specified percentage have joined therein may be evidenced by a writing, or any number of writings of similar tenor, executed by Holders in person, or by an agent or proxy appointed in writing. 
 
ARTICLE VIII 
Miscellaneous Provisions 
Section 8.01. Limitations on Liability of Freddie Mac and Others. 
Neither Freddie Mac nor any of its directors, officers, employees or agents shall be under any liability to the Holders or Beneficial Owners for any action taken, or not taken, by them in good faith under this Agreement or for errors in judgment. This provision will not protect Freddie Mac or any other related person against any liability which would otherwise be  imposed by reason of willful misfeasance, bad faith or gross negligence or by reason of reckless disregard of obligations and duties under this Agreement. Freddie Mac and such related persons shall have no liability of whatever nature for special, indirect or consequential damages, lost profits or business, or any other liability or claim (other than for direct damages),     even if reasonably foreseeable or Freddie Mac has been advised of the possibility of such loss, damage, liability or claim. 
In performing its responsibilities under this Agreement, Freddie Mac may employ agents or independent contractors. Except upon an Event of Default (as defined herein), Freddie Mac shall not be subject to the control of Holders in any    manner in the discharge of its responsibilities pursuant to this Agreement. 
Freddie Mac shall not be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its responsibilities under this Agreement and which in its opinion may involve it in any expense or liability. However,     Freddie Mac may in its discretion undertake any such legal action which it may deem necessary or desirable in the interests    of the Holders. In such event, the legal expenses and costs of such action shall be expenses and costs of Freddie Mac. 

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Section 8.02. Binding Effect of this Agreement. 
(a)  By receiving and accepting a Debt Security, each Holder, financial intermediary and Beneficial Owner of such     Debt Security unconditionally agrees, without any signature or further manifestation of assent, to be bound by the terms and conditions of this Agreement, as supplemented, modified or amended pursuant to its terms. 
(b)  This Agreement shall be binding upon and inure to the benefit of any successor to Freddie Mac. 
Section 8.03. Replacement. 
Any Registered Debt Security in definitive form that becomes mutilated, destroyed, stolen or lost shall be replaced by Freddie Mac at the expense of the Holder upon delivery to the Global Agent of evidence of the destruction, theft or loss   thereof, and an indemnity satisfactory to Freddie Mac and the Global Agent. Upon the issuance of any substituted Registered Debt Security, Freddie Mac or the Global Agent may require the payment by the Holder of a sum sufficient to cover any     taxes and expenses connected therewith. 
Section 8.04. Conditions to Payment, Transfer or Exchange. 
Freddie Mac, its agent or any other person potentially required to withhold with respect to payments on a Debt Security shall have the right to require a Holder of a Debt Security, as a condition to payment of principal of or interest on such Debt Security, or as a condition to transfer or exchange of such Debt Security, to present at such place as Freddie Mac, its agent or such other person shall designate a certificate in such form as Freddie Mac, its agent or such other person may from time to time prescribe, to enable Freddie Mac, its agent or such other person to determine its duties and liabilities with respect to (i) any taxes, assessments or governmental charges which Freddie Mac, any Federal Reserve Bank, the Global Agent or such other person, as the case may be, may be required to deduct or withhold from payments in respect of such Debt Security    under any present or future law of the United States or jurisdiction therein or any regulation or interpretation of any taxing authority thereof; and (ii) any reporting or other requirements under such laws, regulations or interpretations. Freddie Mac, its agent or such other person shall be entitled to determine its duties and liabilities with respect to such deduction, withholding, reporting or other requirements on the basis of information contained in such certificate or, if no certificate shall be presented, on the basis of any presumption created by any such law, regulation or interpretation, and shall be entitled to act in    accordance with such determination. 
Section 8.05. Amendment. 
(a)  Freddie Mac may modify, amend or supplement this Agreement and the terms of an issue of Debt Securities,   without the consent of the Holders or Beneficial Owners, (i) to cure any ambiguity, or to correct or supplement any defective provision or to make any other provision with respect to matters or questions arising under this Agreement or the terms of     any Debt Security that are not inconsistent with any other provision of this Agreement or the Debt Security; (ii) to add to the covenants of Freddie Mac for the benefit of the Holders or surrender any right or power conferred upon Freddie Mac; (iii) to evidence the succession of another entity to Freddie Mac and its assumption of the covenants of Freddie Mac; (iv) to conform the terms of an issue of Debt Securities or cure any ambiguity or discrepancy resulting from any changes in the Book-Entry Rules or any regulation or document that are applicable to book-entry securities of Freddie Mac; (v) to increase the amount of an issue of Debt Securities as contemplated under Section 2.09; or (vi) in any other manner that Freddie Mac may determine and that will not adversely affect in any material respect the interests of Holders or Beneficial Owners at the time of such modification, amendment or supplement. 
(b)  In addition, either (i) with the written consent of the Holders of at least 50% of the aggregate then outstanding principal amount or notional principal amount of an issue of Debt Securities affected thereby, excluding any such Debt Securities owned by Freddie Mac; or (ii) by the adoption of a resolution at a meeting of Holders at which a quorum is     present, by the Holders of at least 50% of the aggregate then outstanding principal amount or notional principal amount of an issue of Debt Securities represented at such meeting, excluding any such Debt Securities owned by Freddie Mac, Freddie    Mac may from time to time and at any time modify, amend or supplement the terms of an issue of Debt Securities for the purpose of adding any provisions to or changing in any manner or eliminating any provisions of such Debt Securities or modifying in any manner the rights of the Holders; provided, however, that no such modification, amendment or supplement may, without the written consent or affirmative vote of each Holder of a Debt Security; (A) change the Maturity Date or any Interest Payment Date of such Debt Security; (B) materially modify the redemption or repayment provisions, if any, relating    to the redemption or repayment price of, or any redemption or repayment date or period for, such Debt Security; (C) reduce   the principal amount of, delay the principal payment of, or materially modify the rate of interest or the calculation of the rate   of interest on, such Debt Security; (D) in the case of Registered Debt Securities only, change the Specified Payment Currency of such Registered Debt Security; or (E) reduce the percentage of Holders whose consent or affirmative vote is necessary to modify, amend or supplement the terms of the relevant issue of Debt Securities. A quorum at any meeting of Holders called     to adopt a resolution shall be Holders entitled to vote a majority of the then aggregate outstanding principal amount or   notional principal amount of an issue of such Debt Securities called to such meeting and, at any reconvened meeting   

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adjourned for lack of a quorum, 25% of the then aggregate outstanding principal amount or notional principal amount of such issue of Debt Securities, in both cases excluding any such Debt Securities owned by Freddie Mac. It shall not be necessary    for the Holders to approve the particular form of any proposed amendment, but it shall be sufficient if such consent or resolution approves the substance of such change. If any modification, amendment or supplement of the terms of an issue of Debt Securities that have been separated into Interest and Principal Components requires the consent of Holders, only the Holders of the Principal Components will be entitled to give or withhold that consent. Holders of Interest Components will have no right to give or withhold such consent. 
(c)  The “principal amount,” for purposes of the preceding paragraph, for a Debt Security that is a Zero Coupon Debt Security or for a Debt Security issued at an “issue price” of 80% or less of its principal amount will be equal to (i) the issue price of such Debt Security; plus (ii) the original issue discount that has accrued from the Issue Date of such Debt Security to the OID Determination Date; minus (iii) any amount considered as part of the “stated redemption price at maturity” of such Debt Security that has been paid from the Issue Date of such Debt Security to the OID Determination Date. 
The “principal amount” of a Debt Security with principal determined by reference to an Index will be described in the applicable Supplemental Agreement. 
(d)  Freddie Mac may establish a record date for the determination of Holders entitled to vote at any meeting of     Holders of Debt Securities, to grant any consent in respect of Debt Securities and to notice with respect to any such meeting    or consent. 
(e)  Any instrument given by or on behalf of any Holder of a Debt Security in connection with any consent to any such modification, amendment or supplement shall be irrevocable once given and shall be conclusive and binding on all    subsequent Holders of such Debt Security or any Debt Security issued, directly or indirectly, in exchange or substitution therefor, irrespective of whether or not notation in regard thereto is made thereon. Any modification, amendment or  supplement of this Agreement or of the terms of Debt Securities shall be conclusive and binding on all Holders of Debt Securities affected thereby, whether or not they have given such consent or were present at any meeting (unless by the terms   of this Agreement a written consent or an affirmative vote of such Holders is required), and whether or not notation of such modification, amendment or supplement is made upon the Debt Securities. 
Section 8.06. Securities Acquired by Freddie Mac. 
Freddie Mac may, from time to time, repurchase or otherwise acquire (either for cash or in exchange for newly-issued Debt Securities) all or a portion of any issue of Debt Securities. Any Debt Securities owned by Freddie Mac shall have an  equal and proportionate benefit under the provisions of this Agreement, without preference, priority or distinction as among such Debt Securities, except that in determining whether the Holders of the required percentage of the outstanding principal amount (or notional principal amount) of an issue of Debt Securities have given any required demand, authorization, notice, consent or waiver under this Agreement, any Debt Securities owned by Freddie Mac or any person directly or indirectly controlling or controlled by or under direct or indirect common control with Freddie Mac shall be disregarded and deemed    not to be outstanding for the purpose of such determination. 
Section 8.07. Notice. 
(a)  Any notice, demand or other communication which by any provision of this Agreement is required or permitted to   be given to or served upon any Holder may be given or served in writing by deposit thereof, postage prepaid, in the mail, addressed to such Holder as such Holder’s name and address may appear in the records of Freddie Mac, a Federal Reserve Bank or the Registrar, as the case may be, or, in the case of a Holder of a Fed Book-Entry Debt Security by transmission to such Holder through the communication system linking the Federal Reserve Banks, or, in the case of a Holder of a Debt Security maintained on DTC, by transmission to such Holder through the DTC communication system. Such notice, demand  or other communication to or upon any Holder shall be deemed to have been sufficiently given or made, for all purposes,    upon mailing or transmission. 
(b)  If and so long as an issue of Debt Securities is admitted for trading on the Euro MTF Market and listed on the Official List of the Luxembourg Stock Exchange and the rules of the Luxembourg Stock Exchange so require, notices with respect to such issue of Debt Securities also shall be published in a newspaper of general circulation in Luxembourg (which     is expected to be Luxemburger Wort) or on the website of the Luxembourg Stock Exchange (http://www.bourse.lu) or, if         such publication is not practical, elsewhere in Europe, if the rules of that exchange so require. Notice by publication shall be deemed to have been given on the date of publication or, if published more than once, on the date of first publication. 
(c)  Any notice, demand or other communication which by any provision of this Agreement is required or permitted to   be given to or served upon Freddie Mac shall be given in writing addressed (until another address is published by Freddie  Mac) as follows: Federal Home Loan Mortgage Corporation, 8200 Jones Branch Drive, McLean, Virginia 22102 Attention: General Counsel and Secretary. Such notice, demand or other communication to or upon Freddie Mac shall be deemed to    have been sufficiently given or made only upon actual receipt of the writing by Freddie Mac. 

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Section 8.08. Governing Law. 
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE HOLDERS AND FREDDIE MAC WITH RESPECT TO THE DEBT SECURITIES SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY  THE LAWS OF THE UNITED STATES. INSOFAR AS THERE MAY BE NO APPLICABLE PRECEDENT, AND   INSOFAR AS TO DO SO WOULD NOT FRUSTRATE THE PURPOSES OF THE FREDDIE MAC ACT OR ANY PROVISION OF THIS AGREEMENT OR THE TRANSACTIONS GOVERNED THEREBY, THE LAWS OF THE      STATE OF NEW YORK SHALL BE DEEMED REFLECTIVE OF THE LAWS OF THE UNITED STATES. 
Section 8.09. Headings. 
The Article, Section and Subsection headings are for convenience only and shall not affect the construction of this Agreement. 
FEDERAL HOME LOAN MORTGAGE CORPORATION 

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