Document:

EX-10.1

Exhibit 10.1

[Fannie Mae Letterhead]

September 1, 2005

The Honorable Stephen A. Blumenthal

Acting Director

Office of Federal Housing Enterprise Oversight

1700 G. St. NW

Washington, DC 20552

Dear Director Blumenthal:

On October 19, 2000, Fannie Mae and Freddie Mac (the corporations) announced their voluntary
adoption of a series of financial risk management and disclosure commitments designed to enhance
market discipline, liquidity and capital. In consultation with OFHEO, Fannie Mae and Freddie Mac
have reviewed these commitments, are updating them to ensure their continuing effectiveness, and
are setting forth the process by which the commitments are being implemented.1

	 	1.	 	Issuance of Subordinated Debt

Fannie Mae and Freddie Mac will issue subordinated debt for public secondary market trading and
rated by no less than two nationally recognized statistical rating organizations:

	 	•	 	The purpose of the subordinated debt is to provide market information on the perceived
risks of each corporation and, in addition to capital, to provide protection to senior
debt holders.

	 	•	 	Subordinated debt will be issued in a quantity such that the sum of total capital (core
capital plus general allowance for losses) plus the outstanding balance of qualifying
subordinated debt will equal or exceed the sum of outstanding net MBS times 0.45 percent
and total on-balance sheet assets times 4 percent. 2

1 The interim risk-based capital stress test,
an initiative undertaken by the corporations in 2000, was superseded by the
implementation by OFHEO of the risk based capital stress test in 2002.

2 Qualifying subordinated debt is defined as
subordinated debt that contains the interest deferral feature described below.
•The interest deferral requires the deferral of interest payments
for up to 5 years if:
•The corporation’s core capital falls below 125% of critical
capital or
•The corporation’s core capital falls below minimum capital AND,
pursuant to the corporation’s request, the Secretary of the Treasury
exercises discretionary authority to purchase the company’s obligations
under Section 306(c) of the Freddie Mac Charter Act and Section 304(c) of
the Fannie Mae Charter Act.

Calculations of percentages and remaining life will be as of the last day
of each month and effective until the last day of the following month.

Subordinated debt meeting all the conditions specified above will be
discounted for the purposes of this calculation as it approaches maturity in
the following manner: one-fifth of the outstanding amount is excluded each year
during the instrument’s last five years before maturity. When remaining
maturity is less than one year, the instrument is entirely excluded. Remaining
life to maturity for subordinated debt that is callable before maturity will be
calculated by the final maturity of the subordinated debt.

1

The Honorable Stephen A. Blumenthal

September 1, 2005

Page 2

	 	•	 	The corporations shall take reasonable steps to maintain outstanding subordinated debt
of sufficient size to promote liquidity and reliable market quotes on market values.

	 	•	 	Every 6 months, commencing January 1, 2006, each corporation will submit to its OFHEO
Examiner-in-Charge a subordinated debt management plan that includes any issuance plans
for the upcoming six months. The plan also will include:

	 	•	 	An assessment of the liquidity of current outstanding issuances including, where
available, bid-offer spreads and dealer price quotes

	 	•	 	An assessment of the prevailing market conditions for new issuances

	 	•	 	The capital needs of the corporation

	 	•	 	Where available, information on the investor base of outstanding subordinated debt

	 	•	 	Other relevant factors, including, but not limited to, excessive cost.

The plan may be updated, as appropriate, to reflect changes in circumstances and market conditions.

	 	•	 	OFHEO will evaluate each plan submitted and provide the corporation with its
views.3

	 	•	 	If OFHEO does not object to a plan submitted to it by a corporation, then the
corporation may proceed to implement the plan.

	 	•	 	Each quarter the corporation shall submit to OFHEO calculations of its quantity
of subordinated debt and total capital as part of its quarterly capital report.
OFHEO will disclose each corporation’s calculation as a separate item in its
quarterly capital classification of each corporation.

	 	2.	 	Liquidity Management and Contingency Planning

Each corporation will comply with principles of sound liquidity management consistent with
industry practice. In addition, each corporation will:

3 The plan submitted to OFHEO may include
information including, but not limited to, the amount, timing and feasibility
of issuing such debt, particularly in situations where current financial
statements for a corporation are not available.

2

The Honorable Stephen A. Blumenthal

September 1, 2005

Page 3

	 	•	 	Maintain a portfolio of highly liquid assets. The size of this liquid asset
portfolio will be established by each corporation and assessed by the OFHEO Examiner
in Charge.

	 	•	 	Maintain a functional contingency plan providing for at least three months’
liquidity (using internal forecasts) without relying upon issuance of unsecured debt.

	 	•	 	Periodically test the contingency plan in consultation with its OFHEO
Examiner-in-Charge.

	 	3.	 	Public Disclosures

Each corporation will provide periodic public disclosures on its risks and risk management
practices and will inform its OFHEO Examiner-in-Charge of the disclosures.4 These
disclosures for each corporation will include:

Subordinated Debt Disclosure

	 	•	 	Compliance of the corporation with the commitment regarding subordinated debt,
including a comparison of the quantity of subordinated debt and total capital to the
levels set forth above.

Liquidity Management Disclosure

	 	•	 	Compliance of the corporation with the plan for maintaining three months’
liquidity and meeting the commitment for periodic testing.

Interest Rate Risk Disclosures

	 	•	 	Monthly averages of its duration gap. Each corporation will work with OFHEO to try
to align its measures as much as practicable.

	 	•	 	Monthly disclosures of the impact on its financial condition of both a 50-basis
point shift in rates and a 25-basis point change in the slope of the yield curve.

Credit Risk Disclosures

	 	•	 	Quarterly assessments of the impact on the corporation’s expected credit losses
from an immediate 5 percent decline in single-family home prices for the entire U.S.

	 	•	 	Impact will be reported in present value terms and measure losses to the
corporation both before and after receipt of private mortgage insurance claims and
other credit enhancements.

4Disclosures may be affected by situations where current financial statements are
not available for a corporation; this should be reported to OFHEO.

3

The Honorable Stephen A. Blumenthal

September 1, 2005

Page 4

Public Disclosure of Risk Rating

	 	•	 	Each corporation will seek to obtain a rating that will be continuously monitored
by at least one nationally recognized statistical rating organization.

	 	•	 	The rating will assess, among other things, the independent financial strength or
“risk to the government” of the corporation operating under its authorizing
legislation but without assuming a cash infusion or extraordinary support of the
government in the event of a financial crisis.

	 	4.	 	Monitoring, Review and Amendment

	 	•	 	OFHEO will monitor and report whether each corporation is meeting the terms of
the above commitments.

	 	•	 	Each corporation will be responsible for reporting to OFHEO concerning its
implementation of these commitments, changes in circumstances and market
conditions affecting the corporation’s ability to implement the commitments, and
possible amendments to any of these commitments.

	 	•	 	The OFHEO Examiner-in-Charge for each corporation, in consultation with the
corporation, will routinely monitor the effectiveness of these commitments and all
materials submitted to OFHEO shall be provided to the Examiner-in-Charge. The
OFHEO Examiner-in-Charge will serve as the primary contact for the corporations.

Fannie Mae and Freddie Mac are pleased to agree with OFHEO regarding the process for implementation
of the commitments set forth above. We believe this step will significantly enhance the
flexibility and continuing effectiveness of the above commitments. We appreciate the opportunity
to work with you on this subject and we will of course continue to do so as we move forward.

Sincerely,

/s/ Daniel H. Mudd

4

[OFHEO LETTERHEAD]

September 1, 2005

Mr. Daniel H. Mudd

President and Chief Executive Officer

Fannie Mae

3900 Wisconsin Avenue, NW

Washington, DC 20016-2892

Dear Mr. Mudd:

I am in receipt of your letter of September 1, 2005 proposing an agreement under which Fannie Mae
would issue subordinated debt pursuant to a bi-annual plan reviewed by OFHEO and subject to the
continuing oversight of the agency. The agreement also encompasses Fannie Mae making public
disclosures related to risk and represents the transformation of the “voluntary initiative”
announced by your company on October 19, 2000, into an enforceable agreement with your federal
regulator.

OFHEO agrees to your proposal. This exchange of letters constitutes a written agreement for the
purposes of subtitle C of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992.

The evolution of the voluntary nature of the initiatives into a formal regulatory process enhances
the strength of the commitments of the enterprise to public disclosure and furthers the goal of
ensuring the safe and sound operation of the company in an environment which includes discipline
imposed by the financial markets. OFHEO will address any additional implementation matters that
may be required as they arise.

We look forward to working with you on this matter.

Sincerely,

/s/ Stephen A. Blumenthal

Stephen A. Blumenthal

Acting Director

5EX-10.1

July 6, 2005

Peter A. Nitze

4 Amy Drive

Morristown, NJ 07960

Dear Peter:

On behalf of Martek Biosciences Corporation, I have the pleasure of offering you, subject to
the approval of Martek’s Board of Directors, the position of Chief Operating Officer at our
Columbia, Maryland headquarters. In your new position, you will have both the manufacturing and R&D
functions of the company reporting to you. You will be reporting directly to me.

Your compensation package will include an annual salary of $364,000. You will be eligible to
participate in Martek’s Management Cash Bonus Incentive and comprehensive benefits program, which
includes medical, dental and life insurance plans and our 401(k) plan.

You will receive a stock-option grant to purchase 25,000 shares of the company’s common stock
at a price which shall be the closing price for the stock at the close of business on the date you
begin employment with Martek (the grant date). This stock option will vest in five equal increments
over a four-year period beginning after the grant date and will terminate the earlier of ten years
from the grant date or the date that you leave the employ of Martek.

You will also be provided a relocation allowance up to a maximum of $150,000, provided the
relocation occurs within six months of your employment start date. This allowance is intended to
cover the costs of relocating your family to Maryland, to include temporary living expenses,
selling costs for your current home, two house-hunting trips, travel expenses for the actual move
and initial expenses associated with purchasing a new home (points not included), as well as a
“gross up” of these expenses to help offset your tax liability. You may elect to have the moving
company paid directly with the amount deducted from this total allowance. Should you decide to
terminate your employment with Martek within the first two years of employment, you will be
required to reimburse all expenses incurred with regard to your relocation based on the following
schedule:

	 	1.	 	Prior to first anniversary: 100%

	 	2.	 	Prior to second anniversary: 50%

This offer is also contingent on a satisfactory criminal background check and drug test, which
Martek will arrange for you. These tests will be at Martek’s expense. You will also be required to
provide documentation that you are authorized to work for Martek Biosciences Corporation in the
United States.

Your start date will be September 6, 2005, provided all the processing listed above has
been completed. Neither this letter nor any of Martek’s employment policies shall be construed as
an employment agreement.

I am very excited that you are joining our team and look forward to working with you to help
continue Martek’s record of growth through developing and manufacturing products that are important
for optimal health and well-being. To indicate your acceptance of this offer, please sign both
copies of this letter and return one copy to me.

	 	 	 
	Read and accepted by:

	 	Sincerely,

/s/ Steve Dubin

Steve Dubin

President

	/s/ Peter A. Nitze     

	 	     7/9/05     
	 

	 	 
	Peter A. Nitze

	 	Date

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