Freddie Mac 2014 Annual Report Download - page 305

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3.3 Transfers Between Corporation and Participating Subsidiary. Notwithstanding
any provision above to the contrary, if a Participant transfers employment directly between the
Corporation and a Participating Subsidiary, without an intervening break in employment (as
determined by the Administrator in accordance with uniform and nondiscriminatory rules), the
Participant shall continue to participate under the Plan following such transfer. Notwithstanding
anything to the contrary in this Plan, any transfer of a Participant’s employment between the
Corporation and any Affiliate shall be treated in a manner consistent with Code section 409A.
3.4 Participant Consent. By participating in this Plan, a Participant shall for all
purposes be deemed conclusively to have consented to the provisions of the Plan and to all
subsequent amendments thereto.
ARTICLE IV
Supplemental Benefit Credit
4.1 Basis of Benefit.
(a) The Supplemental Benefit Credit for a Plan Year will be determined based
on: (i) the Executive’s Plan Year Compensation; (ii) the Compensation cap described in
Code section 401(a)(17) for the Plan Year; and (iii) the limitation set forth in Code
section 415(c) for the Plan Year.
(b) No Supplemental Benefit Credit will be accrued for a Participant for a
Plan Year with respect to pay in excess of 200% of a Participant’s “base salary” (as
defined in the 2014 Executive Management Compensation Program, or successor
thereto), for any year in which the Participant is covered by such program. Additionally,
no Supplemental Benefit Credit related to the Transitional Employer Contributions and
Fixed Employer Contributions under the Transitional Plan will be accrued for a
Participant for a Plan Year unless the Participant is employed by the Employer on the last
day of the Plan Year in question, except as provided in Section 4.3.
4.2 Supplemental Benefit Credit Calculation.
(a) For each Plan Year in which a Participant participates in the Transitional
Plan and meets the other requirements set forth in this Plan, the Participant’s Account
shall be credited with a Supplemental Benefit Credit in an amount equal to the excess, if
any, of (i) over (ii), where:
(i) is the amount of the Employer Contributions that would have been
made to the Transitional Plan for the Plan Year in question without regard to the
Section 415 Limitation and the cap described in Code section 401(a)(17) on
Compensation under the Transitional Plan, and
(ii) is the amount of the Employer Contribution that was actually made
to the Participant’s account under the Transitional Plan for the Plan Year in
question with the application of the limitations, caps, and exclusions referred to in
subparagraph (i) above.