Document:

exv10w1

 

    Exhibit
    10.1

 

     

	 	 	 
	
    Date
    
	
 
	
    To
    

	
    July 20, 2009
	
 
	
    Charles E. Haldeman

	
 
	
 
	
 

	
    From
    
	
 
	
 

	
    Gene Shanks
	
 
	
 

	
 
	
 
	
 

	
    Subject
    
	
 
	
 

	
    Your Compensation as Chief Executive Officer

 

    On behalf of the Compensation Committee (“Committee”)
    of Freddie Mac’s Board of Directors (“Board”),
    this memorandum sets forth Freddie Mac’s agreement to
    employ you as its Chief Executive Officer, effective on the date
    your employment commences, pursuant to the terms and conditions
    set forth herein. The terms and conditions set forth herein
    supersede any previous communications you may have had with
    Freddie Mac, the Federal Housing Finance Agency
    (“FHFA”), or the Department of the Treasury.

 

    As you are aware, there is substantial uncertainty regarding
    executive compensation practices in the financial services
    industry as a result of numerous government actions and the
    recently issued regulations. Our regulator, the FHFA, is working
    diligently with the Department of the Treasury to provide us
    with guidance on the impact of the new regulations on Freddie
    Mac’s compensation programs. Until FHFA and the Department
    of the Treasury are able to provide us with greater clarity, we
    are not able to make an offer with respect to several elements
    of what we would expect to comprise your total compensation
    package.

 

    Nevertheless, we want to make you the offer outlined in this
    memorandum with the understanding that once FHFA provides final
    guidance regarding the structure of executive compensation it is
    our intention to structure a compensation package consistent
    with compensation being offered to chief executive officers at
    our major competitors. The terms and conditions in this letter
    have been approved by the Compensation Committee (the
    “Committee”) of Freddie Mac’s Board of Directors
    and James D. Lockhart, the Federal Housing Finance Agency’s
    Director, who has also consulted with the Department of the
    Treasury.

 

    As Freddie Mac’s Chief Executive Officer, you shall be the
    highest-ranking officer of Freddie Mac and shall have the same
    status, privileges, and responsibilities normally inherent in
    such capacity in corporations of similar size and character. You
    shall also perform such additional duties as the Board may from
    time to time reasonably assign to you. In addition, for so long
    as you remain Chief Executive Officer, the Board shall nominate
    you as a director of Freddie Mac.

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 2 of 13

 

    During your employment as Chief Executive Officer, you agree to
    devote substantially your full time, attention, and energies to
    Freddie Mac’s business, and to not be engaged in any other
    business activity, whether or not such business activity is
    pursued for gain, profit, or other pecuniary advantage, other
    than service on outside Boards as approved by the Committee.
    This restriction shall not prevent you from devoting a
    reasonable amount of time to charitable or public interest
    activities or from making passive investments of your assets in
    such form or manner as you desire, consistent with Freddie
    Mac’s Personal Securities Investments Policy.

 

    Please review and confirm that such terms and conditions conform
    to your understanding by returning to Paul George, Freddie
    Mac’s Executive Vice-President of Human Resources and
    Corporate Services, a signed copy of this memorandum.

 

		
	
    I.  
	
    Compensation

 

    Freddie Mac agrees to pay you the following:

 

    A. Base Salary

 

    Your annualized base salary shall be $900,000 and will be paid
    subject to Freddie Mac’s executive compensation plans,
    practices and policies in effect as of the date of payment.
    Subject to approval by FHFA after consulting with the Department
    of the Treasury, the Committee has the discretion to determine
    whether to implement a salary adjustment.

 

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

 

    B. Additional Incentive Opportunity

 

    To the extent permitted by FHFA and after we receive
    clarification on the above referenced regulatory actions
    impacting executive compensation, we would propose to provide
    you with a short-term and long-term target incentive opportunity
    that when added to your base salary would be consistent with the
    level of compensation provided by our major competitors (which
    are subject to the same regulations) for the equivalent position.

 

    Once established, your short-term target incentive opportunity
    for 2009 will be pro-rated based on your date of hire. Your
    long-term incentive opportunity for 2009 will be pro-rated based
    on the maximum number of whole months that you can work during
    the long-term incentive’s performance period(s).

 

    The actual dollar amount of the incentive opportunity you
    receive shall be determined in the sole discretion of the
    Committee, subject to approval by FHFA after consulting with the
    Department of the Treasury, as appropriate, and may be based on
    an assessment of performance against your individual objectives,
    as well as company and division performance against Freddie
    Mac’s annual corporate Scorecard.

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 3 of 13

 

		
	
    II.  
	
    Relocation
    Benefit

 

    You shall receive the relocation benefit consistent with the
    Company’s executive relocation package.

 

    In lieu of the
    90-day
    temporary living program provided under our standard executive
    relocation benefits, you will be provided with no more than nine
    months of temporary lodging for you and your family at a local
    hotel or a comparable living arrangement and reimbursement for
    reasonable commuting and necessary living expenses.

 

    In addition to the benefits provided under our standard
    executive relocation program, you and each member of your
    immediate family will be provided with one commercial flight
    to/from the Washington D.C. area and your current residence each
    month for the first nine months of your employment. You are
    permitted to aggregate the maximum permitted flights during the
    nine month period and use them as you see fit for yourself or
    any member of your immediate family.

 

    The Company will not provide a
    gross-up of
    any relocation expenses regardless of whether the benefit is
    provided on an exception basis or pursuant to the Company’s
    normal executive relocation benefit.

 

    III.
    Other Benefits

 

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

 

			
	 	    • 
	
    Health and Welfare — Competitive and flexible medical
    benefits program for you and your eligible dependants with
    several options to choose from. Dental and vision coverage for
    you and your dependants that covers a wide variety of services.

	 
	 	    • 
	
    Thrift/401(k) Savings Plan — You will be able to
    contribute on a pre-tax basis and Freddie Mac will begin
    matching a portion of your contributions — based on
    years of service — up to 6% of pay. This plan also
    includes a Company annual discretionary contribution called the
    “Basic Contribution”, which is in addition to the
    matching contribution and is based on a defined formula with a
    five year vesting schedule.

	 
	 	    • 
	
    Pension Plan — Provides benefits based on a formula
    that takes into account your age, salary, and years of service.
    The formula is, in summary, 1% x Highest Average Monthly Pay for
    a Consecutive 36 Month Period x Years of Service. You will
    vest in this benefit after five-years of service. Benefits are
    normally paid out in the form of a monthly annuity beginning at
    age 65.

	 
	 	    • 
	
    Supplemental Executive Retirement Plan (SERP) — An
    unfunded non-qualified plan for officers intended to make up for
    employer provided contributions
    and/or
    benefits under

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 4 of 13

 

			
	 	      
	
    the Pension Plan and Thrift/401(k) Savings Plan that are capped
    due to Internal Revenue Code limitations.

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

 

    Under a separate cover we are sending details of our employee
    benefit plans. As a new employee, when you first become eligible
    for benefits, you may select the plans that best meet your needs
    and those of your family by logging on to
    http://netbenefits.fidelity.com.
    Shortly after your start date, you will receive an email from
    the “Benefits Center” instructing you to log on to
    Fidelity NetBenefits to make your benefits elections.

 

    You will not receive any information at your home address. Your
    enrollment window is 30 days. During Orientation, our
    flexible benefits program and information about enrollment, will
    be explained in greater detail. Please visit our new hire
    website, Step Inside,
    http://www.freddiemac.com/careers/stepinside/,
    for information about working at Freddie Mac.

 

		
	
    IV.  
	
    Vacation

 

    As an officer, you are eligible to accrue up to 20 days of
    core vacation during your first calendar year of employment.
    This equates to 6.46 hours each pay period; you begin
    accruing vacation starting your first complete pay period.

 

    Starting in 2010 (your second calendar year of employment), you
    will have the opportunity to continue to accrue 20 days
    vacation during each calendar year. You will be provided more
    information following your start of employment.

 

		
	
    V.  
	
    Compensation
    In the Event of Termination

 

    In the event that Freddie Mac terminates your employment for
    reasons other than “Cause” (as defined in Attachment A
    hereto), then Freddie Mac will provide you with severance pay
    and other benefits in an amount equal to that provided to
    Freddie Mac’s senior executive officers pursuant to the
    terms of an applicable severance policy in effect as of the date
    of your termination of employment.

 

    In the event that any compensation or benefit to be provided
    pursuant to the terms of this Paragraph V constitutes
    nonqualified deferred compensation subject to section 409A
    of the Internal Revenue Code, then any payment of such
    compensation or benefit shall be delayed to the extent necessary
    to comply with Internal Revenue Code
    section 409A(a)(2)(B)(i) and accompanying Treasury
    regulations and other applicable Treasury or Internal Revenue
    Service guidance.

 

    Your employment shall be deemed terminated within the meaning of
    Paragraph V in the event you for any reason other than
    “Cause” (as defined in Attachment A hereto) no longer
    serve as

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 5 of 13

 

    the highest-ranking officer of Freddie Mac, your
    responsibilities as Chief Executive Officer are materially
    diminished, you are not nominated by the Board to serve as a
    Director of Freddie Mac or your base salary is reduced.

 

		
	
    VI.  
	
    Termination
    of Board Membership

 

    Your termination of employment for any reason (including
    resignation) shall be deemed to be the termination of your
    membership on the Board as of the same effective date.

 

    VII.
    Restrictive Covenant Agreement

 

    The terms of compensation provided in this memorandum are
    contingent on your agreement to be bound by the terms of the
    enclosed Restrictive Covenant Agreement, which you must sign and
    return together with a signed copy of this memorandum. It is
    included as Attachment B.

 

    VIII.
    Recapture Agreement

 

    The terms of compensation provided in this memorandum are
    contingent on your agreement to be bound by the terms of the
    enclosed Recapture Agreement, which you must sign and return
    together with a signed copy of this memorandum. It is included
    as Attachment C.

 

		
	
    IX.  
	
    Escrow
    Agreement

 

    You acknowledge that payments of compensation and benefits,
    including any termination of employment payment pursuant to
    Paragraph V, are subject to escrow in the event prior to
    the first anniversary of the termination of your employment for
    any reason FHFA files a Notice of Charges alleging misconduct by
    you that was knowing and caused or would be likely to cause a
    substantial loss to Freddie Mac and directs the company to
    escrow compensation and benefits that otherwise may be paid to
    you.

 

		
	
    X.  
	
    FHFA
    Approval

 

    Notwithstanding FHFA’s approval of the terms and conditions
    of compensation provided herein, including compensation to be
    paid to you in the event of the termination of your employment,
    you acknowledge and understand that such approval is subject to
    reassessment. If a severance triggering event were to occur, any
    future payout would be subject to the review and approval of the
    Director of the FHFA at that time.

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 6 of 13

 

		
	
    XI.  
	
    Reservation
    of Rights

 

    This memorandum is not intended, nor shall it be interpreted, to
    constitute a contract of employment for a specified duration,
    and each of you and Freddie Mac retain the discretion to
    terminate the employment relationship at any time for any lawful
    reason.

 

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

 

    This memorandum shall be construed, and the rights and
    obligations herein determined, exclusively in accordance with
    the substantive law of the Commonwealth of Virginia, excluding
    provisions of Virginia law concerning choice-of-law that would
    result in the law of any state other than Virginia being applied.

 

 

	 	 	 
	
    /s/  Eugene
    B. Shanks, Jr.

	
 
	
    July 21, 2009

	
 
	
 
	
 

	
    Eugene B. Shanks, Jr.
	
 
	
    Date

	
    Chairman, Compensation Committee
	
 
	
 

 

    I agree to the terms of this memorandum, which includes
    Attachments A, B, and C.

 

 

	 	 	 
	
    /s/  Charles E.
    Haldeman

	
 
	
    July 21, 2009

	
 
	
 
	
 

	
    Charles E. Haldeman
	
 
	
    Date

 

 

    Attachments
    

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 7 of 13

 

    ATTACHMENT
    A

    TO

    July 20, 2009 MEMORANDUM TO CHARLES E. HALDEMAN

 

    Definition
    of “Cause”
    

 

    For purposes of the memorandum agreement, “Cause”
    shall mean the occurrence of one or more of the following:

 

    (i) You commit a felony or any crime involving moral
    turpitude;

 

    (ii) In carrying out your duties, you engage in conduct
    that constitutes gross neglect or gross misconduct or any
    material violation of applicable Freddie Mac rule or policy,
    including any policy relating to investment by Freddie Mac
    employees in securities, the violation of which amounts to gross
    neglect or gross misconduct;

 

    (iii) You materially breach any provision of this
    memorandum agreement; or

 

    (iv) Any other willful or malicious misconduct on your part
    that is substantially injurious to Freddie Mac.

 

    In each case, “Cause” shall not exist unless and until
    Freddie Mac has delivered to you a copy of a resolution duly
    adopted by a majority of the entire Board of Directors
    (excluding you) at a meeting of the Board of Directors called
    and held for such purpose (after reasonable notice to you and an
    opportunity for you, together with counsel, to be heard before
    the Board of Directors), finding that in the good faith opinion
    of the Board an event set forth in subclauses (i), (ii),
    (iii) or (iv) has occurred. During the period
    commencing on the date Freddie Mac notifies you that it intends
    to call a meeting of the Board of Directors to terminate your
    employment for “Cause” pursuant to this memorandum
    agreement, Freddie Mac may reduce your responsibilities and
    duties and any such reduction or diminishment in your
    responsibilities and duties during such period shall not
    constitute the termination of your employment.

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 8 of 13

 

    Attachment
    B

 

    RESTRICTIVE
    COVENANT AND CONFIDENTIALITY AGREEMENT

 

    In exchange for the mutual promises and consideration set forth
    below, this Restrictive Covenant and Confidentiality Agreement
    (“Agreement”) is entered into by and between the
    Federal Home Loan Mortgage Corporation (“Freddie Mac”
    or “Company”) and Charles E. Haldeman
    (“Executive”), effective as of July 20, 2009.

 

		
	
    I.      
	
    Definitions

 

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

 

    A.      Prohibited
    Competition: Considering offers of employment from, seeking
    or accepting employment with, directly or indirectly providing
    professional services to, becoming a director of, or being an
    investor (representing more than a five (5) percent equity
    interest) in, (i) Fannie Mae (ii) all Federal Home
    Loan Banks (including the Office of Finance); and
    (iii) such other entities to which the Executive and the
    Company may agree in writing from time-to-time.

 

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

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 9 of 13

 

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

 

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

 

    II.      Non-Competition

 

    Executive recognizes that as a result of Executive’s
    employment with Freddie Mac, Executive has access to and
    knowledge of critically sensitive Confidential Information, the
    improper disclosure or use of which would result in grave
    competitive harm to Freddie Mac. Therefore, Executive agrees
    that during Executive’s employment with Freddie Mac and for
    twenty-four (24) months immediately following termination
    of Executive’s employment for any reason, Executive shall
    not engage in Prohibited Competition. Executive acknowledges and
    agrees that this covenant has unique, substantial and
    immeasurable value to Freddie Mac, that Executive has sufficient
    skills to provide a livelihood for Executive while this covenant
    remains in force, and that this covenant will not interfere with
    Executive’s ability to work consistent with
    Executive’s experience, training and education. This
    non-competition covenant applies regardless of whether
    Executive’s employment is terminated by Executive, by
    Freddie Mac, or by a joint decision.

 

    III.      Non-Solicitation
    and Non-Recruitment

 

    During Executive’s employment with Freddie Mac and for a
    period of twelve (12) months after Executive’s
    termination of employment for any reason, Executive shall not
    directly or indirectly, on his own behalf of or on behalf of any
    other person, corporation, partnership, firm, financial
    institution or other business entity, recruit or solicit or
    attempt to recruit or solicit or assist another to recruit or
    solicit any person (who at such time is employed as a Freddie
    Mac officer (or equivalent) to cease their employment
    relationship with Freddie Mac for the purpose of their being
    employed by or providing professional services to any other
    entity or person; provided that this section shall not be
    construed as a prohibition on the ability of Executive to
    provide a reference to any person or entity with which Executive
    has no affiliation provide the Freddie Mac employee has notified
    Freddie Mac of their intent to terminated their employment with
    Freddie Mac.

 

		
	
    IV.      
	
    Treatment
    of Confidential Information

 

    A.      Non-Disclosure.
    Executive recognizes that Freddie Mac is engaged in an extremely
    competitive business and that, in the course of performing
    Executive’s job duties, Executive will have access to and
    gain knowledge about Confidential Information. Executive further
    recognizes the importance of carefully protecting this
    Confidential Information in order for Freddie Mac to compete
    successfully. Therefore, Executive agrees that Executive will
    neither divulge Confidential Information to any persons,
    including to other Freddie Mac employees who do not have a
    Freddie Mac business-related need to know, nor make use of the
    Confidential Information for the Executive’s own benefit or
    for the benefit of anyone else other

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 10 of 13

 

    than Freddie Mac. Executive further agrees to take all
    reasonable precautions to prevent the disclosure of Confidential
    Information to unauthorized persons or entities, and to comply
    with all Company policies, procedures, and instructions
    regarding the treatment of such information.

 

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

 

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

 

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

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 11 of 13

 

		
	
    V.      
	
    Consideration
    Given to Executive

 

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

 

    A.      Compensation Agreement.
    Freddie Mac has agreed to compensate Executive as Chief
    Executive Officer pursuant to the terms and conditions set forth
    in the July 20, 2009 memorandum agreement between Executive
    and Freddie Mac.

 

    B.      Severance. In the
    event the Executive’s employment is terminated pursuant to
    circumstances that qualify the Executive for Severance, then the
    Executive shall receive Severance and other benefits in an
    amount equal to that provided to Freddie Mac’s senior
    executive officers pursuant to the terms of an applicable
    severance policy in effect as of the date of Executive’s
    termination of employment. Executive’s receipt of Severance
    is contingent on any legally required approval from the Director
    of the Federal Housing Finance Agency.

 

		
	
    VI.      
	
    Compliance
    with the Code of Conduct and Corporate Policies

 

    As a Freddie Mac employee, Executive will be subject to Freddie
    Mac’s Code of Conduct (“Code”) and to Corporate
    Policy 3-206, Personal Securities Investments Policy
    (“Policy”) that, among other things, limit the
    investment activities of Freddie Mac employees. Executive agrees
    to fully comply with the Code and the Policy.

 

    VII.      Absence
    of Any Conflict of Interest

 

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

 

    VIII.      Affect
    of Termination of Employment

 

    In the event that your employment terminates for any reason, you
    agree that you shall be deemed to have resigned, effective as of
    the date of such termination of employment with Freddie Mac, as
    a member of Freddie Mac’s Board of Directors and from all
    positions, titles, duties, authorities and responsibilities
    arising out of or relating to your employment or such

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 12 of 13

 

    Board membership, including any directorships or fiduciary
    positions to which your were serving at the request of, or
    appointment by, Freddie Mac. You also agree that you will
    execute any such documents and take any such further steps as
    Freddie Mac’s Board of Directors reasonably may ask of you
    to effectuate such resignations.

 

		
	
    IX.      
	
    Reservation
    of Rights

 

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

 

		
	
    X.      
	
    Enforcement

 

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

 

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

 

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

 

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

 

    Compensation Terms — Charles E.
    Haldeman — July 20, 2009

    Page 13 of 13

 

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

 

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

 

 

	 	 	 	 	 	 	 
	
    By:
	
 
	
        

	
 
	
    Date:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
    Charles E. Haldeman
	
 
	
 
	
 
	
 

 

Attachment C

Recapture Agreement

	Triggering
Event	 	The recapture will be triggered if, at any time during the executive’s employment with
Freddie Mac (or, under certain circumstances after termination of the executive’s employment, as
described below), the Board determines and notifies you in writing that any of the following (“Triggering Events”) occurred:
	 
	 	 	1.	 	The executive has obtained a legally binding right to bonus or incentive payment based on materially inaccurate
financial statements (which includes, but is not limited to, statements of earnings, revenues, or gains) or any other
materially inaccurate performance metric criteria.
	 
	 	 	2.	 	As a result of misconduct, Freddie Mac is required to prepare an accounting restatement due to the material noncompliance of
Freddie Mac with any financial reporting requirements under the federal securities laws. 
	 
	 	 	3.	 	The executive’s employment with Freddie Mac is terminated for “cause” under subclauses (i) or (iv) as
defined below or, within two years of the termination of the executive’s employment at Freddie Mac, the Board makes
a determination that circumstances existed at the time of the executive’s termination that would have justified termination
for cause under subclauses (i) or (iv) or the executive was later convicted of or pleaded nolo contendere to a felony
committed before the termination date and such felony resulted in material business or reputational harm to Freddie Mac. 
	 
	 	 	4.	 	The executive’s employment with Freddie Mac is terminated for “cause” under subclauses (ii) or (iii) as
defined below, or within two years of the termination of the executive’s employment at Freddie Mac, the Board makes a
determination that circumstances existed at the time of the executive’s termination that would have justified a
termination for cause under subclauses (ii) or (iii) as defined below and that actions of the executive resulted in material
business or reputational harm to Freddie Mac.

 

 

Recapture Agreement - Charles E. Haldeman - July 20, 2009

Page 2 of 5

	Definition of Cause	 	For purposes of this Recapture Agreement, “cause” shall mean the occurrence of one or more of the following:
	 
	 	 	 	 	(i) The executive is convicted of or pleads nolo contendere to a charge of a felony or any crime involving moral turpitude; 
	 
	 	 	 	 	(ii) In carrying out his duties, the executive engages in conduct that constitutes gross neglect or gross
misconduct or any material violation of applicable Freddie Mac rule or policy, including any policy relating
to investment by Freddie Mac employees in securities, the violation of which amounts to gross neglect or gross misconduct; 
	 
	 	 	 	 	(iii) The executive materially breaches any provision of the Memorandum Agreement dated
July 20, 2009 from Gene Shanks to the executive; or 
	 
	 	 	 	 	(iv) Any other willful or malicious misconduct on the executive's part that is substantially injurious to Freddie Mac.
	 
	 	 	•	In each case, “cause”
shall not exist unless and until Freddie Mac shall have provided: (i) reasonable notice to the executive setting forth
Freddie Mac’s intention to make a determination that an event set forth in subclauses
(i), (ii), (iii) or (iv) has occurred; (ii) where remedial action is appropriate and feasible, a reasonable opportunity
for the executive to take such action; (iii) an opportunity for the executive, together with the executive’s
counsel, to be heard before the Board; and (iv) executive with a copy of a resolution duly adopted by a majority of
the entire Board of Directors (excluding the executive) at a meeting of the Board of Directors called and held for such
purpose finding that in the good faith opinion of the Board an event set forth in subclauses
(i), (ii), (iii) or (iv) has occurred.  No act or failure to act by the executive will be considered
“willful” unless it is done, or omitted to be done, by the executive in bad faith or without reasonable belief
that the executive’s action or omission was in the best interests of Freddie Mac.

 

 

Recapture Agreement - Charles E. Haldeman - July 20, 2009

Page 3 of 5

	Recapture Period
	 	1.	 	In the case of the first Triggering Event, compensation subject to recapture may include Recapture Eligible Compensation
(as defined below) paid to the Executive for up to two years prior to the Triggering Event.
	 
	 	 	2.	 	In the case of the second Triggering Event, compensation is subject to recapture consistent with
Section 304 of the Sarbanes-Oxley Act of 2002.
	 
	 	 	3.	 	In the case of the third Triggering Event, compensation subject to recapture may include Recapture Eligible
Compensation paid to the Executive for up to two years prior to the date that the executive is terminated or subsequent to
the termination of employment.
	 
	 	 	4.	 	In the case of the fourth Triggering Event, compensation subject to recapture may include Recapture Eligible
Compensation paid to the Executive at the time of termination of employment or subsequent to the date of termination.
	 
	 
	Compensation
Subject to
Recapture
	 	For purposes of this Recapture Agreement, “Recapture Eligible Compensation” shall consist of the following:
	 
	 	 	1.	 	In the case of the first Triggering Event, Recapture Eligible Compensation consists of the annual
short-term incentive (“STI”) (i.e., the annual bonus) and the annual long-term incentives (“LTI”).  
	 
	 	 	2.	 	In the case of the second Triggering Event, Recapture Eligible Compensation consists of bonuses and profits
described in section 304 of the Sarbanes-Oxley Act of 2002.

	 
	 	 	3.	 	In the case of the third and fourth Triggering Events, Recapture Eligible Compensation consists of the annual
STI, the annual LTI and any severance benefits paid.
	 
	 	 	In the event that the executive is terminated for cause under any of
the subclauses (i), (ii), (iii) or (iv) specified in the Definition of Cause above, the executive forfeits rights to
any future payment of annual

 

 

Recapture Agreement - Charles E. Haldeman - July 20, 2009

Page 4 of 5

	 	 	STI, LTI or severance benefits that might otherwise have been due pursuant to the terms
of applicable plans or awards from the date of executive’s termination forward. 
	 
	 	 	With respect to any recapture of compensation:
	 
	 	 	•	 	A recapture of STI or other cash paid, for such compensation that the Board determines is subject to
repayment, would require the executive to repay the gross amount of the compensation previously paid.  Additionally, any further
obligation of Freddie Mac to make payments under such plans could be cancelled.
	 
	 	 	•	 	A recapture of LTI or other stock-based award granted, for such awards that the Board determines, would require the executive
to repay Freddie Mac the full fair market value of the award(s) based upon vesting date.  Additionally, any unvested and/or
unexercised stock-based awards could be cancelled.
	 
	 	 	•	 	Base salary paid prior to the date of the Triggering Event is not subject to recapture.
	 
	 	 	•	 	The executive’s assets acquired prior to employment by Freddie Mac or acquired from sources other than
Freddie Mac directly are not subject to recapture under this agreement.  The right to recapture is not retroactive
prior to the date of employment.

 

 

Recapture Agreement - Charles E. Haldeman - July 20, 2009

Page 5 of 5

	Amount to
be
Recaptured 	 	The Board has discretion to determine the appropriate amount required to be recaptured, if any,
upon a Triggering Event, which is intended to be the compensation in excess of what Freddie Mac would have paid the
executive had Freddie Mac taken into consideration the impact of the Triggering Event at the time such compensation was awarded.
	 
	 	 	Any disputes between the executive and Freddie Mac concerning the occurrence of a Triggering Event
or the amount subject to recapture shall be determined exclusively in accordance with 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.

I agree to the terms of this Recapture Agreement

	 	 	 	 	 	 	 	 
	 	By:  	
 	 	 	Date:  	
 	 
	 	  	Charles E. Haldemanexv10w2

 

    Exhibit
    10.2

 

Attachment C

Recapture Agreement

	Triggering
Event	 	The recapture will be triggered if, at any time during the executive’s employment with
Freddie Mac (or, under certain circumstances after termination of the executive’s employment, as
described below), the Board determines and notifies you in writing that any of the following (“Triggering Events”) occurred:
	 
	 	 	1.	 	The executive has obtained a legally binding right to bonus or incentive payment based on materially inaccurate
financial statements (which includes, but is not limited to, statements of earnings, revenues, or gains) or any other
materially inaccurate performance metric criteria.
	 
	 	 	2.	 	As a result of misconduct, Freddie Mac is required to prepare an accounting restatement due to the material noncompliance of
Freddie Mac with any financial reporting requirements under the federal securities laws. 
	 
	 	 	3.	 	The executive’s employment with Freddie Mac is terminated for “cause” under subclauses (i) or (iv) as
defined below or, within two years of the termination of the executive’s employment at Freddie Mac, the Board makes
a determination that circumstances existed at the time of the executive’s termination that would have justified termination
for cause under subclauses (i) or (iv) or the executive was later convicted of or pleaded nolo contendere to a felony
committed before the termination date and such felony resulted in material business or reputational harm to Freddie Mac. 
	 
	 	 	4.	 	The executive’s employment with Freddie Mac is terminated for “cause” under subclauses (ii) or (iii) as
defined below, or within two years of the termination of the executive’s employment at Freddie Mac, the Board makes a
determination that circumstances existed at the time of the executive’s termination that would have justified a
termination for cause under subclauses (ii) or (iii) as defined below and that actions of the executive resulted in material
business or reputational harm to Freddie Mac.

 

 

Recapture Agreement - Charles E. Haldeman - July 20, 2009

Page 2 of 5

	Definition of Cause	 	For purposes of this Recapture Agreement, “cause” shall mean the occurrence of one or more of the following:
	 
	 	 	 	 	(i) The executive is convicted of or pleads nolo contendere to a charge of a felony or any crime involving moral turpitude; 
	 
	 	 	 	 	(ii) In carrying out his duties, the executive engages in conduct that constitutes gross neglect or gross
misconduct or any material violation of applicable Freddie Mac rule or policy, including any policy relating
to investment by Freddie Mac employees in securities, the violation of which amounts to gross neglect or gross misconduct; 
	 
	 	 	 	 	(iii) The executive materially breaches any provision of the Memorandum Agreement dated
July 20, 2009 from Gene Shanks to the executive; or 
	 
	 	 	 	 	(iv) Any other willful or malicious misconduct on the executive's part that is substantially injurious to Freddie Mac.
	 
	 	 	•	In each case, “cause”
shall not exist unless and until Freddie Mac shall have provided: (i) reasonable notice to the executive setting forth
Freddie Mac’s intention to make a determination that an event set forth in subclauses
(i), (ii), (iii) or (iv) has occurred; (ii) where remedial action is appropriate and feasible, a reasonable opportunity
for the executive to take such action; (iii) an opportunity for the executive, together with the executive’s
counsel, to be heard before the Board; and (iv) executive with a copy of a resolution duly adopted by a majority of
the entire Board of Directors (excluding the executive) at a meeting of the Board of Directors called and held for such
purpose finding that in the good faith opinion of the Board an event set forth in subclauses
(i), (ii), (iii) or (iv) has occurred.  No act or failure to act by the executive will be considered
“willful” unless it is done, or omitted to be done, by the executive in bad faith or without reasonable belief
that the executive’s action or omission was in the best interests of Freddie Mac.

 

 

Recapture Agreement - Charles E. Haldeman - July 20, 2009

Page 3 of 5

	Recapture Period
	 	1.	 	In the case of the first Triggering Event, compensation subject to recapture may include Recapture Eligible Compensation
(as defined below) paid to the Executive for up to two years prior to the Triggering Event.
	 
	 	 	2.	 	In the case of the second Triggering Event, compensation is subject to recapture consistent with
Section 304 of the Sarbanes-Oxley Act of 2002.
	 
	 	 	3.	 	In the case of the third Triggering Event, compensation subject to recapture may include Recapture Eligible
Compensation paid to the Executive for up to two years prior to the date that the executive is terminated or subsequent to
the termination of employment.
	 
	 	 	4.	 	In the case of the fourth Triggering Event, compensation subject to recapture may include Recapture Eligible
Compensation paid to the Executive at the time of termination of employment or subsequent to the date of termination.
	 
	 
	Compensation
Subject to
Recapture
	 	For purposes of this Recapture Agreement, “Recapture Eligible Compensation” shall consist of the following:
	 
	 	 	1.	 	In the case of the first Triggering Event, Recapture Eligible Compensation consists of the annual
short-term incentive (“STI”) (i.e., the annual bonus) and the annual long-term incentives (“LTI”).  
	 
	 	 	2.	 	In the case of the second Triggering Event, Recapture Eligible Compensation consists of bonuses and profits
described in section 304 of the Sarbanes-Oxley Act of 2002.

	 
	 	 	3.	 	In the case of the third and fourth Triggering Events, Recapture Eligible Compensation consists of the annual
STI, the annual LTI and any severance benefits paid.
	 
	 	 	In the event that the executive is terminated for cause under any of
the subclauses (i), (ii), (iii) or (iv) specified in the Definition of Cause above, the executive forfeits rights to
any future payment of annual

 

 

Recapture Agreement - Charles E. Haldeman - July 20, 2009

Page 4 of 5

	 	 	STI, LTI or severance benefits that might otherwise have been due pursuant to the terms
of applicable plans or awards from the date of executive’s termination forward. 
	 
	 	 	With respect to any recapture of compensation:
	 
	 	 	•	 	A recapture of STI or other cash paid, for such compensation that the Board determines is subject to
repayment, would require the executive to repay the gross amount of the compensation previously paid.  Additionally, any further
obligation of Freddie Mac to make payments under such plans could be cancelled.
	 
	 	 	•	 	A recapture of LTI or other stock-based award granted, for such awards that the Board determines, would require the executive
to repay Freddie Mac the full fair market value of the award(s) based upon vesting date.  Additionally, any unvested and/or
unexercised stock-based awards could be cancelled.
	 
	 	 	•	 	Base salary paid prior to the date of the Triggering Event is not subject to recapture.
	 
	 	 	•	 	The executive’s assets acquired prior to employment by Freddie Mac or acquired from sources other than
Freddie Mac directly are not subject to recapture under this agreement.  The right to recapture is not retroactive
prior to the date of employment.

 

 

Recapture Agreement - Charles E. Haldeman - July 20, 2009

Page 5 of 5

	Amount to
be
Recaptured 	 	The Board has discretion to determine the appropriate amount required to be recaptured, if any,
upon a Triggering Event, which is intended to be the compensation in excess of what Freddie Mac would have paid the
executive had Freddie Mac taken into consideration the impact of the Triggering Event at the time such compensation was awarded.
	 
	 	 	Any disputes between the executive and Freddie Mac concerning the occurrence of a Triggering Event
or the amount subject to recapture shall be determined exclusively in accordance with 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.

I agree to the terms of this Recapture Agreement

	 	 	 	 	 	 	 	 
	 	By: 	
/s/ Charles E. Haldeman	 	 	Date:  	
July 21, 2009	 
	 	  	Charles E. Haldeman

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