Document:

EX-10.5

 Exhibit 10.5 
 SECOND AMENDMENT TO 
 FIRST AMENDED AND RESTATED CREDIT
AGREEMENT 
 THIS SECOND AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) made as of this 11th day of June,
2013, by and among CARTER/VALIDUS OPERATING PARTNERSHIP, LP, a Delaware limited partnership (the “Borrower”), CARTER VALIDUS MISSION CRITICAL REIT, INC., a Maryland corporation (“REIT”), HC-2501 W WILLIAM CANNON
DR, LLC, a Delaware limited liability company (“HC-2501”), DC-19675 W. TEN MILE, LLC, a Delaware limited liability company (“DC-19675”), DC-1221 COIT ROAD, LLC, a Delaware limited liability company
(“DC-1221”), DC-5000 BOWEN ROAD, LLC, a Delaware limited liability company (“DC-5000”), HC-8451 PEARL STREET, LLC, a Delaware limited liability company (“HC-8451”), HC-17322 RED OAK DRIVE, LLC, a
Delaware limited liability company (“HC-17322”), GREEN WELLNESS INVESTORS, LLLP, a Florida limited liability limited partnership (“GWI”), HC-1940 TOWN PARK BOULEVARD, LLC, a Delaware limited liability company
(“HC-1940”); DC-5150 MCCRIMMON PARKWAY, LLC, a Delaware limited liability company (“DC-5150”), DC-15 SHATTUCK ROAD, LLC, a Delaware limited liability company (“DC-15”), HC-239 S. MOUNTAIN BOULEVARD,
LP, a Delaware limited partnership (“HC-239 Owner”) HC-239 S. MOUNTAIN BOULEVARD MANAGEMENT, LLC, a Delaware limited liability company (“HC-239 General Partner”; REIT, HC-2501, DC-19675, DC-1221, DC-5000, HC-8451,
HC-17322, GWI, HC-1940, DC-5150, DC-15, HC-239 Owner and HC-239 General Partner are hereinafter collectively referred to as the “Guarantors”), KEYBANK NATIONAL ASSOCIATION, a national banking association
(“KeyBank”), THE OTHER LENDERS LISTED ON THE SIGNATURES PAGES HEREOF AS LENDERS (KeyBank and the other lenders are listed on the signatures pages hereof as Lenders, collectively, the “Lenders”), and
KEYBANK NATIONAL ASSOCIATION, a national banking association, as Agent for the Lenders (the “Agent”). 

W I T N E S S E T H: 

WHEREAS, Borrower and KeyBank, individually and as Agent, entered into that certain First Amended and Restated Credit Agreement dated as
of November 19, 2012 (as modified or amended from time to time, the “Credit Agreement”); and 
 WHEREAS, REIT and
HC-2501 executed and delivered to Agent and the Lenders that certain Unconditional Guaranty of Payment and Performance dated as of March 30, 2012, as amended by that certain First Amendment to Unconditional Guaranty of Payment and Performance
executed by REIT, HC-2501 and DC-19675 dated as of June 29, 2012 and that certain Second Amendment to Unconditional Guaranty of Payment and Performance executed by REIT, HC-2501 and DC-19675 dated as of July 19, 2012, and as ratified by
that certain Ratification of Unconditional Guaranty of Payment and Performance dated as of November 19, 2012 by REIT, HC-2501, DC-19675, DC-1221, DC-5000 and HC-8451 (as modified, amended, or ratified from time to time, the
“Guaranty”); and 

 WHEREAS, DC-19675 executed that certain Joinder Agreement dated as of May 25, 2012,
thereby becoming a “Subsidiary Guarantor” and “Guarantor” under the Loan Documents (as defined in the Guaranty), including, without limitation, the Guaranty; and 

WHEREAS, DC-1221 executed that certain Joinder Agreement dated as of August 16, 2012, thereby becoming a “Subsidiary
Guarantor” and “Guarantor” under the Loan Documents (as defined in the Guaranty), including, without limitation, the Guaranty; and 
 WHEREAS, DC-5000 executed that certain Joinder Agreement dated as of August 16, 2012, thereby becoming a “Subsidiary Guarantor” and “Guarantor” under the Loan Documents (as
defined in the Guaranty), including, without limitation, the Guaranty; and 
 WHEREAS, HC-8451 executed that certain Joinder
Agreement dated as of September 28, 2012, thereby becoming a “Subsidiary Guarantor” and “Guarantor” under the Loan Documents (as defined in the Guaranty), including, without limitation, the Guaranty; and 

WHEREAS, HC-17322 executed that certain Joinder Agreement dated as of November 28, 2012, thereby becoming a “Subsidiary
Guarantor” and “Guarantor” under the Loan Documents (as defined in the Guaranty), including, without limitation, the Guaranty; and 
 WHEREAS, GWI executed that certain Joinder Agreement dated as of December 28, 2012, thereby becoming a “Subsidiary Guarantor” and “Guarantor” under the Loan Documents (as defined
in the Guaranty), including, without limitation, the Guaranty; and 
 WHEREAS, HC-1940 executed that certain Joinder Agreement
dated as of December 28, 2012, thereby becoming a “Subsidiary Guarantor” and “Guarantor” under the Loan Documents (as defined in the Guaranty), including, without limitation, the Guaranty; and 

WHEREAS, DC-5150 executed that certain Joinder Agreement dated as of March 21, 2013, thereby becoming a “Subsidiary
Guarantor” and “Guarantor” under the Loan Documents (as defined in the Guaranty), including, without limitation, the Guaranty; and 
 WHEREAS, DC-15 executed that certain Joinder Agreement dated as of March 28, 2013, thereby becoming a “Subsidiary Guarantor” and “Guarantor” under the Loan Documents (as defined
in the Guaranty), including, without limitation, the Guaranty; and 
 WHEREAS, HC-239 Owner executed that certain Joinder
Agreement dated as of June     , 2013, thereby becoming a “Subsidiary Guarantor” and “Guarantor” under the Loan Documents (as defined in the Guaranty), including, without limitation, the Guaranty; and

 WHEREAS, HC-239 General Partner executed that certain Joinder Agreement dated as of June     , 2013,
thereby becoming a “Subsidiary Guarantor” and “Guarantor” under the Loan Documents (as defined in the Guaranty), including, without limitation, the Guaranty; and 

WHEREAS, Borrower and Guarantors have requested that the Agent and the Lenders make certain modifications to the Credit Agreement; and

 WHEREAS, the Agent and the Lenders have consented to such modifications, subject to the execution and delivery of this
Amendment. 

  
 2 

 NOW, THEREFORE, for and in consideration of the sum of TEN and NO/100 DOLLARS ($10.00), and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby covenant and agree as follows: 
 1. Definitions. All terms used herein which are not otherwise defined herein shall have the meanings set forth in the Credit Agreement. 

2. Modification of the Credit Agreement. The Agent, the Lenders and the Borrower hereby amend the Credit Agreement as follows:

 (a) By deleting in its entirety the definition of “Mortgage Note Receivables” appearing in §1.1 of the Credit
Agreement, and inserting the following new definition in lieu thereof: 
 “Mortgage Note Receivables. Mortgage and
notes receivable and other promissory notes, including interest payments thereunder, in favor of, or payable to, the Borrower or any Subsidiary which are in, or made by, or payable by, any Person (other than the Borrower or its Subsidiaries) that
are secured by (a) a mortgage loan on a Data Center Asset or Medical Asset or (b) a pledge of the equity interest in any entity which directly or indirectly (through the ownership of equity interests in one or more entities) owns an equity
interest in an entity that owns a Data Center Asset or a Medical Asset.” 
 (b) By deleting in its entirety §8.3(j) of
the Credit Agreement, and inserting in lieu thereof the following: 
 “(j) Investments by the Borrower or its Subsidiaries
(other than the Subsidiary Guarantors) in Mortgage Note Receivables secured by properties that meet the property type requirements of a Data Center Asset or a Medical Asset; and” 

(c) By inserting the following new §8.3(k) into the Credit Agreement: 

“(k) acquisition of fee simple interests or long-term ground lease interests in Real Estate by Borrower or its Subsidiaries that
meet the property type requirements of a Data Center Asset or a Medical Asset.” 
 3. Consent and Acknowledgment.
Agent and the Lenders acknowledge that the mezzanine loans made by Borrower prior to the date of this Amendment for the projects commonly known as (a) Clear Lake/Bay Area Regional Medical Center, 200 Blossom Street, Webster, Texas 77598, and
(b) Walnut Hill Physician’s Hospital, 7502 Greenville Avenue, Dallas, Texas, 75231 are permitted Investments under §8.3(j) of the Credit Agreement. 
 4. References to Credit Agreement. All references in the Loan Documents to the Credit Agreement shall be deemed a reference to the Credit Agreement as modified and amended herein. 

  
 3 

 5. Consent of Guarantors. By execution of this Amendment, Guarantors hereby expressly
consent to the modifications and amendments relating to the Credit Agreement, Guaranty and the Loan Documents as set forth herein, and Borrower and Guarantors hereby acknowledge, represent and agree that the Loan Documents (including without
limitation the Guaranty) remain in full force and effect and constitute the valid and legally binding obligation of Borrower and Guarantors, respectively, enforceable against such Persons in accordance with their respective terms, and that the
Guaranty extends to and applies to the foregoing documents as modified and amended. 
 6. Representations. Borrower and
Guarantors represent and warrant to Agent and the Lenders as follows: 
 (a) Authorization. The execution, delivery and
performance of this Amendment and the transactions contemplated hereby (i) are within the authority of Borrower and Guarantors, (ii) have been duly authorized by all necessary proceedings on the part of such Persons, (iii) do not and
will not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which any of such Persons is subject or any judgment, order, writ, injunction, license or permit applicable to such Persons,
(iv) do not and will not conflict with or constitute a default (whether with the passage of time or the giving of notice, or both) under any provision of the partnership agreement or certificate, certificate of formation, operating agreement,
articles of incorporation or other charter documents or bylaws of, or any mortgage, indenture, agreement, contract or other instrument binding upon, any of such Persons or any of its properties or to which any of such Persons is subject, and
(v) do not and will not result in or require the imposition of any lien or other encumbrance on any of the properties, assets or rights of such Persons, other than the liens and encumbrances created by the Loan Documents. 

(b) Enforceability. The execution and delivery of this Amendment are valid and legally binding obligations of Borrower and
Guarantors enforceable in accordance with the respective terms and provisions hereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of
creditors’ rights and the effect of general principles of equity. 
 (c) Approvals. The execution, delivery and
performance of this Amendment and the transactions contemplated hereby do not require the approval or consent of or approval of any Person or the authorization, consent, approval of or any license or permit issued by, or any filing or registration
with, or the giving of any notice to, any court, department, board, commission or other governmental agency or authority other than those already obtained. 
 (d) Reaffirmation. Borrower and Guarantors reaffirm and restate as of the date hereof each and every representation and warranty made by the Borrower, the Guarantors and their respective
Subsidiaries in the Loan Documents or otherwise made by or on behalf of such Persons in connection therewith except for representations or warranties that expressly relate to an earlier date. 

7. No Default. By execution hereof, the Borrower and Guarantors certify that the Borrower and Guarantors are and will be in
compliance with all covenants under the Loan Documents after the execution and delivery of this Amendment, and that no Default or Event of Default has occurred and is continuing. 

  
 4 

 8. Waiver of Claims. Borrower and Guarantors acknowledge, represent and agree that
Borrower and Guarantors as of the date hereof have no defenses, setoffs, claims, counterclaims or causes of action of any kind or nature whatsoever with respect to the Loan Documents, the administration or funding of the Loans or with respect to any
acts or omissions of Agent or any of the Lenders, or any past or present officers, agents or employees of Agent or any of the Lenders, and each of Borrower and Guarantors does hereby expressly waive, release and relinquish any and all such defenses,
setoffs, claims, counterclaims and causes of action, if any. 
 9. Ratification. Except as hereinabove set forth or in
any other document previously executed or executed in connection herewith, all terms, covenants and provisions of the Credit Agreement remain unaltered and in full force and effect, and the parties hereto do hereby expressly ratify and confirm the
Credit Agreement. Nothing in this Amendment shall be deemed or construed to constitute, and there has not otherwise occurred, a novation, cancellation, satisfaction, release, extinguishment or substitution of the indebtedness evidenced by the Notes
or the other obligations of Borrower and Guarantors under the Loan Documents (including without limitation the Guaranty). 
 10.
Counterparts. This Amendment may be executed in any number of counterparts which shall together constitute but one and the same agreement. 
 11. Miscellaneous. THIS AMENDMENT SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. This
Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors, successors-in-title and assigns as provided in the Credit Agreement. 

12. Effective Date. This Amendment shall be deemed effective and in full force and effect as of the date hereof upon the execution
and delivery of this Amendment by Borrower, Guarantors, Agent and the Required Lenders. 
 [SIGNATURES BEGIN ON NEXT PAGE]

  
 5 

 IN WITNESS WHEREOF, the parties hereto have hereto set their hands and affixed their seals
as of the day and year first above written. 
  

			
	BORROWER:
	
	CARTER/VALIDUS OPERATING PARTNERSHIP, LP, a Delaware limited partnership
		
	By:	 	Carter Validus Mission Critical REIT, Inc., a Maryland corporation, its general partner
		
		 	 By: /s/ Todd M. Sakow

		 	Name: Todd M. Sakow
		 	Title: Chief Financial Officer
		
		 	(CORPORATE SEAL)

  
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	GUARANTORS:
	
	CARTER VALIDUS MISSION CRITICAL REIT, INC., a Maryland corporation
		
	By:	 	/s/ Todd M. Sakow
	Name:  Todd M. Sakow
	Title:    Chief Financial Officer
	
	              (CORPORATE SEAL)
	
	HC-2501 W WILLIAM CANNON DR, LLC, a Delaware limited liability company
		
	By:	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By:	 	Carter Validus Mission Critical REIT, Inc., a Maryland corporation, its General Partner
				
		 		 	By:	 	/s/ Todd M. Sakow
		 		 	Name:  Todd M. Sakow
		 		 	Title:    Chief Financial Officer
	
	                            
(CORPORATE SEAL)
	
	DC-19675 W. TEN MILE, LLC, a Delaware limited liability company
		
	By:	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By:	 	Carter Validus Mission Critical REIT, Inc., a Maryland corporation, its General Partner
				
		 		 	By:	 	/s/ Todd M. Sakow
		 		 	Name:  Todd M. Sakow
		 		 	Title:    Chief Financial Officer
	
	                            
(CORPORATE SEAL)

  
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 7 

 
							
	DC-1221 COIT ROAD, LLC, a Delaware limited liability company
		
	By:	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By:	 	Carter Validus Mission Critical REIT, Inc., a Maryland corporation, its General Partner
				
		 		 	By:	 	/s/ Todd M. Sakow
		 		 	Name:  Todd M. Sakow
		 		 	Title:    Chief Financial Officer
	
	                            
(CORPORATE SEAL)
	
	DC-5000 BOWEN ROAD, LLC, a Delaware limited liability company
		
	By:	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By:	 	Carter Validus Mission Critical REIT, Inc., a Maryland corporation, its General Partner
				
		 		 	By:	 	/s/ Todd M. Sakow
		 		 	Name:  Todd M. Sakow
		 		 	Title:    Chief Financial Officer
	
	                            
(CORPORATE SEAL)
	
	HC-8451 PEARL STREET, LLC, a Delaware limited liability company
		
	By:	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By:	 	Carter Validus Mission Critical REIT, Inc., a Maryland corporation, its General Partner
				
		 		 	By:	 	/s/ Todd M. Sakow
		 		 	Name:  Todd M. Sakow
		 		 	Title:    Chief Financial Officer
	
	                            
(CORPORATE SEAL)

  
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 8 

 
									
	HC-17322 RED OAK DRIVE, LLC, a Delaware limited liability company
		
	By:	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By:	 	 Carter Validus Mission Critical REIT, Inc., a Maryland corporation,
 its General Partner

				
		 		 	By:	 	/s/ Todd M. Sakow
		 		 	Name:  Todd M. Sakow
		 		 	Title:    Chief Financial Officer
	
	                          (CORPORATE
SEAL)
	
	GREEN WELLNESS INVESTORS, LLLP, a Florida limited liability limited partnership
		
	By:	 	HC-1940 Town Park Boulevard, LLC, a Delaware limited liability company, its General Partner
			
		 	By:	 	 Carter/Validus Operating Partnership, LP, a
 Delaware limited partnership, its sole
 member

				
		 		 	By:	 	 Carter Validus Mission Critical
 REIT, Inc., a Maryland corporation,
 its General Partner

					
		 		 		 	By:	 	/s/ Todd M. Sakow
		 		 		 	Name:  Todd M. Sakow
		 		 		 	Title:    Chief Financial Officer
	
	                            
    (CORPORATE SEAL)

  
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 9 

 
							
	 HC-1940 TOWN PARK BOULEVARD, LLC, a
 Delaware limited liability company

		
	By:	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By:	 	Carter Validus Mission Critical REIT, Inc., a Maryland corporation, its General Partner
				
		 		 	By:	 	/s/ Todd M. Sakow
		 		 	Name:  Todd M. Sakow
		 		 	Title:    Chief Financial Officer
	
	                          (CORPORATE
SEAL)
	
	DC-5150 MCCRIMMON PARKWAY, LLC, a Delaware limited liability company
		
	By:	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By:	 	Carter Validus Mission Critical REIT, Inc., a Maryland Corporation, its General Partner
				
		 		 	By:	 	/s/ Todd M. Sakow
		 		 	Name:  Todd M. Sakow
		 		 	Title:    Chief Financial Officer
	
	                          (CORPORATE
SEAL)
	
	DC-15 SHATTUCK ROAD, LLC, a Delaware limited liability company
		
	By:	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By:	 	Carter Validus Mission Critical REIT, Inc., a Maryland Corporation, its General Partner
				
		 		 	By:	 	/s/ Todd M. Sakow
		 		 	Name:  Todd M. Sakow
		 		 	Title:    Chief Financial Officer
	
	                          (CORPORATE
SEAL)

  
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 10 

 
									
	
	
	 HC-239 S. MOUNTAIN BOULEVARD, LP,
 a Delaware limited partnership

		
	By: 	 	HC-239 S. Mountain Boulevard Management, LLC, a Delaware limited liability company, its sole general partner
			
		 	By: 	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
				
		 		 	By: 	 	Carter Validus Mission Critical REIT, Inc., a Maryland Corporation, its General Partner
					
		 		 		 	By:	 	 /s/ Todd M. Sakow

		 		 		 	 Name: 

Title:
	 	 Todd M. Sakow
 Chief
Financial Officer

			
		 		 	 (CORPORATE SEAL)

  

							
	HC-239 S. MOUNTAIN BOULEVARD MANAGEMENT, LLC, a Delaware limited liability company
		
	By: 	 	Carter/Validus Operating Partnership, LP, a Delaware limited partnership, its sole member
			
		 	By: 	 	Carter Validus Mission Critical REIT, Inc., a Maryland Corporation, its General Partner
				
		 		 	By:	 	 /s/ Todd M. Sakow

		 		 	 Name: 

Title:
	 	 Todd M. Sakow
 Chief
Financial Officer

			
		 		 	 (CORPORATE SEAL)

  
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 11 

 
			
	AGENT AND LENDERS:
	
	 KEYBANK NATIONAL ASSOCIATION,
 individually and as Agent

		
	By:	 	 /s/ Virgil L. Hogan

	Name: 	 	 Virgil L. Hogan

	Title:	 	 Vice President

  
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	CAPITAL ONE, NATIONAL ASSOCIATION
		
	By:	 	/s/ Todd Gordon
	Name:	 	Todd Gordon
	Title:	 	Authorized Signatory

  
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	SYNOVUS BANK
		
	By:	 	/s/ David W. Bowman
	Name:	 	David W. Bowman
	Title:	 	Senior Vice President

  
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 14 

 
			
	TEXAS CAPITAL BANK
		
	By:	 	/s/ Robert N. Delph
	Name:	 	Robert N. Delph
	Title:	 	Executive Vice President

  
 15Exhibit 10.1

 Exhibit 10.1 
 2013 EXECUTIVE MANAGEMENT COMPENSATION PROGRAM 
 FOR VIRGINIA-BASED
COVERED OFFICERS (“2013 VIRGINIA EMCP”) 
 Program Document 

Effective January 1, 2013 
  

							
	Covered Positions	  	This Program Document applies to Virginia-based Covered Officers. Freddie
Mac’s Chief Operating Officer (“COO”), all Executive Vice Presidents (“EVPs”), and all Senior Vice Presidents (“SVPs”) are each considered a “Covered Officer,” unless an employee’s participation as a
Covered Officer is specifically excluded in a separate agreement. A Covered Officer is considered Virginia-based if he or she is primarily or principally assigned to provide services from a work location in the Commonwealth of
Virginia.
	Covered Position Participation
Requirement	  	Participation in the 2013 Virginia EMCP is conditioned on the Covered
Officer’s agreement to the terms and conditions set forth herein and in the 2013 EMCP Recapture and Forfeiture Agreement (“Recapture Agreement”). A Covered Officer who does not agree to the terms of both the 2013 Virginia EMCP and
the Recapture Agreement will receive only Base Salary. The terms and conditions set forth in the Recapture Agreement are incorporated in and made a part of this 2013 Virginia EMCP.
	Target Total Direct Compensation1	  	A Covered Officer’s target total direct compensation (“Target
TDC”) is the sum of Base Salary and Deferred Salary, each of which is paid in cash.
	Base Salary	  	Base Salary is earned and paid on the company’s standard payroll cycle
and cannot exceed $500,000 without FHFA approval.
	Deferred Salary	  	The portion of Target TDC not paid in Base Salary is Deferred Salary, which is
earned on the company’s standard payroll cycle. The amount earned in each quarter will be paid in cash on the last business day of the corresponding quarter of the following calendar year (“the Approved Payment Schedule”). Deferred
Salary consists of the following two elements:
	 	  		  		  	 
	 	  		  	At-Risk Deferred Salary – At-Risk Deferred Salary shall be equal to 30% of the Covered
Officer’s Target TDC. The amount of At-Risk Deferred Salary earned in a calendar year is subject to reduction based on corporate and individual performance as follows:
	 	  		  		  	 
	 	  		  	Ø	  	One-half of At-Risk Deferred Salary (or 15% of Target TDC) is subject to reduction based on an assessment by the
Compensation Committee (the Committee) of the Board of Directors and the Federal Housing Finance Agency (FHFA) of performance against Conservatorship Scorecard objectives relevant for the calendar year in which the At-Risk Deferred Salary is
earned.2 The reduction can range from 0% (no reduction) to
100% (the maximum reduction).
	 	  		  		  	 
	 	  	 	  	Ø	  	One-half of At-Risk Deferred Salary (or 15% of Target TDC) is subject to reduction based
on the Covered Officer’s performance against individual objectives and an assessment of the company’s performance against corporate goals which are complementary to Conservatorship Scorecard objectives, each relevant for the calendar year
in which the At-Risk Deferred Salary is earned. The total reduction can range from 0% (no reduction) to 100% (the maximum reduction).

  
  

	1 	 Initially expressed as an annual rate. Amount will be prorated, as appropriate, to reflect date of hire, promotion into a Covered Position, date of
termination, or other adjustment to Target TDC. 

	2 	 For the Covered Officer leading the Internal Audit function, the reduction will be based on the appropriate Board committee’s and FHFA’s
assessment of performance against the Internal Audit Scorecard objectives. 

 2013 Virginia Executive Management Compensation Program 

Page 2 of 5 
 Effective January 1,
2013 
  

									
	 Deferred Salary

(continued)
	 	 	  	  

A Covered Officer’s performance during the calendar year will be assessed by the Chief Executive Officer, in his/her sole
discretion, pursuant to the performance assessment and reduction process in effect for such year.
  
 At-Risk Deferred Salary payments for Covered Officers are subject to review and approval by the Committee and FHFA.
  

Fixed Deferred Salary – Fixed Deferred Salary shall be equal to the Covered Officer’s Target TDC less Base
Salary and less At-Risk Deferred Salary and is not subject to reduction based on either corporate or individual performance.
  
 Payment of both At-Risk and Fixed Deferred Salary is also subject, if applicable, to the “Treatment Upon Termination” provisions set forth below.

	  

Impact on Retirement, Executive, and Welfare Plans
	 	 	  	  

The treatment of Base Salary and Deferred Salary as compensation for purposes of Freddie Mac’s retirement and welfare benefit plans is governed by
the actual terms of those plans. The table below summarizes whether the Base Salary and Deferred Salary a Covered Officer receives while an active employee are treated as compensation for purposes of the following Freddie Mac retirement and welfare
benefit plans. Freddie Mac retains the right to amend, revise or discontinue any of the retirement and welfare benefit plans and the terms of each plan will prevail in the event that there is any conflict between those terms and the table
below

 2013 Virginia Executive Management Compensation Program 

Page 3 of 5 
 Effective January 1,
2013 
  

											
	  
 Impact on Retirement, Executive, and Welfare Plans (continued)
	 	 	  	 	  	 
	 		  	
Freddie Mac’s Retirement and Welfare

Benefit Plans
	  	 Base Salary
 Considered

  Compensation?  
	  	 Deferred Salary
 Considered

Compensation?
	  	 
	 	 		  	  
 Tax-Qualified Thrift/401(k)
	  	Yes	  	Yes	  	 
	 	 		  	  
 Tax-Qualified Employees’ Pension3
	  	Yes	  	Yes	  	 
	 	 		  	  

Non-Qualified Supplemental Executive Retirement Plans (SERP)3,4
	  	Yes	  	Yes	  	 
	 	 		  	  
 Group Term Life Insurance
	  	Yes	  	No	  	 
	 	 		  	  
 Group Universal Life Insurance
	  	Yes	  	No	  	 
	 	 		  	  
 Long-Term Disability Plan
	  	Yes	  	No	  	 
	 	 		  	  
 Accidental Death and Personal Loss Insurance
	  	Yes	  	No	  	 
	 	 		  	  
 Business Travel Accident Insurance
	  	Yes	  	No	  	 
	 	 		  	  
 Worker’s Compensation
	  	Yes	  	No	  	 
	 	 		  	  
 Purchase/Payout of Vacation
	  	Yes	  	No	  	 
	 	 	 	  	  
 Any Base Salary or Deferred Salary a Covered Officer receives after termination of employment is NOT treated as compensation for purposes of any Freddie Mac retirement or welfare benefit
plan.
  

	  

Treatment Upon Termination:

Base Salary
  
	 	 	  	  

Base Salary will cease upon termination of employment, regardless of the reason for such termination.

  
  

 

	3 	 Employees hired or rehired on or after January 1, 2012 are not eligible to participate in the Pension Plan or the Pension SERP.

	4 	 Compensation for the purposes of the Non-Qualified SERP may not exceed two times a Covered Officer’s Base Salary. 

 2013 Virginia Executive Management Compensation Program 

Page 4 of 5 
 Effective January 1,
2013 
  

			
	 Treatment Upon
Termination:

At-Risk Deferred Salary
	  	 The timing and
payment of any unpaid portion of At-Risk Deferred Salary is based on the reason for termination of employment, as follows:
  

•  Forfeiture Event – All earned but unpaid At-Risk Deferred Salary is subject
to forfeiture upon the occurrence of an event or conduct described in the Recapture Agreement;
  

•  Death – All earned but unpaid At-Risk Deferred Salary is paid as soon as
administratively possible, but not later than 90 calendar days after the date of death, subject to the terms and conditions of the Recapture Agreement; and
  

•  Any Other Reason5 – All earned but unpaid At-Risk Deferred Salary is paid in accordance with the Approved Payment Schedule, subject
to the performance assessment and reduction process for At-Risk Deferred Salary and to the terms and conditions of the Recapture Agreement.
  

In cases of death or Long-Term Disability (as defined in the Long-Term Disability Plan in effect on the date of termination), the performance assessment
and reduction process for At-Risk Deferred Salary is waived, and there is no reduction based on either corporate or individual performance.

	 Treatment Upon Termination:

Fixed Deferred Salary
	  	 The timing and
payment of any unpaid portion of Fixed Deferred Salary is based on the reason for termination of employment, as follows:
  

•  Forfeiture Event – All earned but unpaid Fixed Deferred Salary is subject to
forfeiture upon the occurrence of an event or conduct described in the Recapture Agreement;
  

•  Death – All earned but unpaid Fixed Deferred Salary is paid in full as soon
as administratively possible, but not later than 90 calendar days after the date of death, subject to the terms and conditions of the Recapture Agreement; and
  

•  Any Other Reason5 – All earned but unpaid Fixed Deferred Salary is paid in accordance with the Approved Payment Schedule, subject to
the terms and conditions of the Recapture Agreement.
  
 A Covered
Officer’s earned but unpaid Fixed Deferred Salary will be reduced by 2% for each full or partial month by which the termination precedes January 31 of the second calendar year following the calendar year in which the Fixed Deferred Salary is
earned.
  
 This reduction will not be applied in cases of death, Long-Term
Disability or retirement. For purposes of this 2013 Virginia EMCP, a Covered Officer is considered to have retired when s/he voluntarily terminates employment after attaining or exceeding 65 years of age, regardless of the Covered Officer’s
length of service.

  
  

 

	5 	 Any Other Reason includes, but is not limited to, voluntary terminations, retirement, Long-Term Disability, and involuntary termination for any reason
other than a Forfeiture Event. 

 2013 Virginia Executive Management Compensation Program 

Page 5 of 5 
 Effective January 1,
2013 
  

			
	 Reservation of Rights

and Applicable Law
	  	 Each Covered
Officer’s employment with Freddie Mac is “at-will,” meaning that either the Covered Officer or Freddie Mac may terminate such employment at any time with or without cause or notice. Nothing in this Program Document or any other
document referred to or incorporated by reference herein shall be held or construed to change the at-will nature of any Covered Officer’s employment with Freddie Mac.

 
 Nothing in this Program Document is intended or shall be construed to abrogate
FHFA’s authority to either: (i) modify or terminate any compensation plan or program (including the 2013 Virginia EMCP); or (ii) disapprove the actual payment of any form of compensation to be paid pursuant to the 2013 Virginia EMCP.

 
 FHFA retains the right to modify any of the terms and conditions of your employment,
including the right to modify or rescind the terms and conditions of the 2013 Virginia EMCP as well as the actual payment of compensation to you pursuant thereto, without giving rise to liability on the part of Freddie Mac.

 
 The 2013 Virginia EMCP is subject to and shall be construed in accordance with: (i)
any applicable law and any applicable regulation, guidance or interpretation of FHFA and/or the United States Department of the Treasury; and (ii) the substantive laws of the Commonwealth of Virginia, excluding provisions of the Virginia law
concerning choice-of-law that would result in the law of any state other than Virginia being applied.
  
 Payment of Deferred Salary under the 2013 Virginia EMCP is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986 (“Section 409A”), as amended, and,
specifically, with the separation pay exemption and short term deferral exemption of Section 409A, and shall in all respects be construed, interpreted, and administered in accordance with Section 409A. Notwithstanding anything in the 2013 Virginia
EMCP to the contrary, payments may only be made pursuant to the 2013 Virginia EMCP upon an event and in a manner permitted by Section 409A or an applicable exemption. All payments to be made upon a termination of employment under this Program may
only be made upon a “separation from service” under section 409A. If a Covered Officer is a “specified employee” (within the meaning of Section 409A(a)(2)(B)(i)) at the time of a separation from service, payments scheduled to be
made during the six months following the separation from service shall, to the extent required by Section 409A, be deferred to and payable on the first day of the seventh month following the separation from service.

 This 2013 Virginia EMCP will be in effect for 2013 and subsequent years unless and until amended or superseded. By signing
below, I acknowledge that I understand and voluntarily agree to the terms of this 2013 Virginia EMCP, effective as of January 1, 2013: 
  

							
	 	  		  	 	  	
	 Covered Officer’s Signature
	  		  	Date	  	
		  		  		  	
	 	  		  		  	
	 Printed Name
	  		  		  	
		  		  		  	
	 	  		  		  	
	Title

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