Document:

exv10w22

 

Exhibit 10.22

FANNIE MAE

SUPPLEMENTAL RETIREMENT SAVINGS PLAN

(Effective July 1, 2008)

ARTICLE I

Establishment and Purpose

     Fannie Mae hereby establishes the Fannie Mae Supplemental Retirement Savings Plan, effective
July 1, 2008. The purpose of the Plan is to attract and retain individuals of outstanding
competence as employees of the Company by permitting such individuals to elect to defer a portion
of their compensation from the Company and by providing benefits to supplement benefits provided
under the Federal National Mortgage Association Retirement Savings Plan for Employees. The Plan is
intended to be “a plan which is unfunded and is maintained by an employer primarily for the purpose
of providing deferred compensation for a select group of management or highly compensated
employees” within the meaning of Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA, and
shall be interpreted and administered consistent with that intent. The Plan is intended to be
operated in accordance with the requirements applicable to a “nonqualified deferred compensation
plan” under Code section 409A and the regulations thereunder and shall be interpreted and
administered consistent with that intent.

ARTICLE II

Definitions 

     When used herein the following terms shall have the following meanings:

     2.1. “Account” means a bookkeeping account described in Section 6.1.

     2.2. “Administrator” means the most senior officer in the Human Resources department or his or
her designee.

     2.3. “Board” means the Board of Directors of the Company.

     2.4. “Code” means the Internal Revenue Code of 1986, as from time to time amended and in
effect.

     2.5. “Company” means Federal National Mortgage Association or Fannie Mae.

     2.6. “Compensation” for any period shall have the meaning given to the term “Earnings” under
applicable provisions of the Retirement Savings Plan, as in effect from time to time, but shall be
determined for all purposes of the Plan without regard to the IRS Limit.

 

 

     2.7. “Credit” means an Elective Credit, a Matching Credit, or a Nondiscretionary Credit.

     2.8. “Deferred Compensation Agreement” means an agreement relating to the deferral of
Compensation pursuant to Section 4.1.

     2.9. “Deemed Investment Portfolio” means a hypothetical portfolio chosen by the Participant
from among such investment options as the Benefit Plans Committee, or its designee, may designate
as available under the Plan.

     2.10. “Disabled” and “Disability” mean, for any Participant, that the Participant, as
determined in the sole discretion of the Administrator:

     (a) is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months, or

     (b) is, by reason of any medically determinable physical or mental impairment that can
be expected to result in death or can be expected to last for a continuous period of not
less than twelve (12) months, receiving income replacement benefits for a period of not less
than three (3) months under an accident and health plan covering employees of the Company.

     2.11. “Effective Date” means July 1, 2008.

     2.12. “Elective Credit” means an amount credited under Section 4.1.

     2.13. “ERISA” means the Employee Retirement Income Security Act of 1974, as from time to time
amended and in effect.

     2.14. “Executive” means any officer or other member of the management group of the Company
whose regular base salary and expected bonus is at least equal to the minimum qualifying salary and
expected bonus established each year by the highest ranking officer in the Human Resources
department or his or her designee.

     2.15. “Grandfathered Executive” means an Executive who satisfies the requirements for being
treated as a “Grandfathered Participant” under the Retirement Plan.

     2.16. “Investment Administrator” means the investment advisor with responsibility for
administering the Deemed Investment Portfolio.

     2.17. “IRS Limit” for any Plan Year means the dollar limit in effect for such Plan Year under
Code section 401(a)(17). For the avoidance of doubt, the IRS limit with respect to Compensation
paid in a Plan Year in respect of services provided in a prior Plan Year shall be the dollar limit
in effect for the Plan Year in which such Compensation is paid (or would be paid, but for a
deferral election under the Plan).

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     2.18. “Matching Credit” means an amount credited under Section 4.3.

     2.19. “Nondiscretionary Credit” means an amount credited under Section 4.4.

     2.20. “Participant” means any Executive who participates in the Plan.

     2.21. “Plan Year” means the period beginning on the Effective Date and ending on December 31,
2008, and any calendar year commencing thereafter; provided, that for purposes of Section 4.4,
“Plan Year” shall mean the calendar year.

     2.22. “Plan” means the Fannie Mae Supplemental Retirement Savings Plan as set forth herein.

     2.23. “Retirement Plan” means the Federal National Mortgage Association Retirement Plan for
Employees Not Covered Under Civil Service Retirement Law.

     2.24. “Retirement Savings Plan” means the Federal National Mortgage Association Retirement
Savings Plan for Employees.

     2.25. “Section 409A” means Code section 409A and the regulations issued by the Department of
the Treasury thereunder.

     2.26. “Separation from Service” means a “separation from service” (as that term is defined at
Treas. Regs. §1.409A-1(h)) from the Company and its affiliates, where “affiliate” means any
corporation, partnership or other entity that would be treated as a single employer with the
Company under Code section 414(b) or (c). The Administrator may, but need not, elect in writing,
subject to the applicable limitations under Section 409A, any of the special elective rules
prescribed in Treas. Regs. §1.409A-1(h) for purposes of determining whether a “separation from
service” has occurred. Any such written election shall be deemed part of the Plan.

     2.27. “Specified Employee” means an individual who is determined by the Administrator to be or
to have been, as of the relevant time, a “specified employee” (as that term is defined at Treas.
Regs. §1.409A-1(i)) of the Company. The Administrator may, but need not, elect in writing, subject
to the applicable limitations under Section 409A, any of the special elective rules prescribed in
Treas. Regs. §1.409A-1(i) for purposes of determining “specified employee” status. Any such
written election shall be deemed part of the Plan.

     2.28. “Unforeseeable Emergency” means an unforeseeable emergency as defined in Code section
409A(a)(2)(B)(ii), including a severe financial hardship to the Participant resulting from an
illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in
Code section 152(a)) of the Participant, loss of the Participant’s property due to casualty, or
other similar extraordinary and unforeseeable circumstances arising as a result of events beyond
the control of the Participant.

     2.29. “Year of Service” means a “Year of Service” as defined in the Retirement Savings Plan.

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     To the extent permitted by the Administrator, the terms “written,” “in writing,” and terms of
similar import shall include communications by electronic media.

ARTICLE III

Eligibility and Participation

     3.1. Eligibility. Subject to Section 3.2, each Executive who is not a Grandfathered
Executive shall be eligible to participate in the Plan.

     3.2. Termination of Participation. The Administrator may terminate an individual’s
participation in the Plan at any time. If an individual’s participation in the Plan terminates,
the individual’s Account shall continue to be adjusted for notional gain or loss in accordance with
Section 6.1 until it is distributed.

     3.3. Effect on Elections. No termination of eligibility or participation shall result
in a cessation or refund of deferrals for which the deferral election has already been made, except
in a manner that is consistent with compliance with the requirements of Section 409A.

ARTICLE IV

Elective Deferrals and Employer Credits 

     4.1. Deferred Compensation; Elective Credits. Subject to such limitations as the
Administrator may prescribe, a Participant may elect to defer for any Plan Year up to 6% of the
lesser of (a) the amount of the Participant’s Compensation for such Plan Year or (b) two times the
amount of the Participant’s base salary for such Plan Year, in either case as reduced by the IRS
Limit, by entering into a Deferred Compensation Agreement, which shall contain such terms and such
provisions as to payment as the Administrator shall prescribe. Elective Credits equal to the
amounts deferred shall be credited to the Participant’s Account as soon as practicable after the
deferral is withheld from pay.

     4.2. Timing of Deferral Elections.

     (a) Subject to Sections 4.2(b) and (c) below, the applicable deadline for a deferral election
is such deadline as the Administrator shall establish, which deadline shall in no event be later
than the December 31 preceding the Plan Year in which the services to which the Compensation
relates are to be performed.

     (b) A Participant who first becomes an Executive after the beginning of a Plan Year may defer
Compensation for the remainder of such year by executing an irrevocable deferral election (on a
form prescribed by the Administrator or his or her delegate) with respect to such Compensation
within thirty (30) days following the date that he or she becomes an Executive. An individual who
already participates or is eligible to participate in any other nonqualified deferred compensation
plan that would be required to be aggregated with the Plan under Treas. Regs. §1.409A-1(c)(2) shall
not be treated as eligible to make a mid-year election under this

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Section 4.2(b) with respect to the Plan, even if he or she has not previously been eligible to
participate in the Plan. Notwithstanding the foregoing, the Administrator may, in its sole
discretion, determine prior to the beginning of a Plan Year that no mid-year election that would
otherwise be permitted under this Section 4.2(b) shall be permitted for such Plan Year.

     (c) A Participant’s deferral elections for a Plan Year shall be cancelled as to future
deferrals if the Participant makes an in-service withdrawal under Section 7.3 below or receives a
hardship distribution under the Retirement Savings Plan pursuant to Treas. Regs. §1.401(k)-1(d)(3).
A Participant may also cancel his or her deferral elections as to future deferrals upon becoming
Disabled, provided such cancellation is made by the later of (i) the end of the calendar year in
which the Participant becomes Disabled and (ii) the fifteenth (15th) day of the third month
following the date on which the Participant becomes Disabled. If a Participant’s deferral
elections are cancelled pursuant to this Section 4.2(c), any later deferral election by the
Participant will be subject to the timing requirements of Section 4.2(a).

     4.3. Matching Credits. For each Plan Year, a Matching Credit shall be added to the
Account of each Participant equal to the amount of the Elective Credits, if any, credited to such
Participant’s account for such Plan Year. Matching Credits shall be added to the Participant’s
Account at such times as the Administrator may determine.

     4.4. Nondiscretionary Credits. For each Plan Year, a Nondiscretionary Credit shall be
added to the Account of each Participant other than a Participant who participated in the Fannie
Mae Executive Pension Plan on November 20, 2007. The amount of the Participant’s Nondiscretionary
Credit shall be equal to 2% of the lesser of (a) the amount of the Participant’s Compensation for
such Plan Year or (b) two times the amount of the Participant’s base salary for such Plan Year, in
either case as reduced by the IRS Limit.

ARTICLE V

Vesting

     5.1. Elective Credits and Matching Credits. The portion of a Participant’s Account
attributable to Elective Credits and Matching Credits shall be fully vested at all times.

     5.2. Nondiscretionary Credits. The portion of a Participant’s Account attributable to
Nondiscretionary Credits shall be fully vested on the Participant’s completion of three Years of
Service or, if earlier, on the Participant’s Disability or death, or on a complete termination of
the Plan.

     5.3. Effect of Vesting. No person shall have any interest in any portion of a
Participant’s Account until such portion has become vested. The fact that an Account or any
portion thereof is vested shall not give any person a right to receive the value of such Account
except in accordance with the terms of the Plan.

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ARTICLE VI

Participant’s Accounts 

     6.1. Accounts. The Company shall establish bookkeeping accounts to record the Credits
made under the Plan. Each Account shall be increased and decreased in accordance with the
following provisions:

     (a) A Participant shall designate a Deemed Investment Portfolio and shall allocate amounts
credited to his or her Account among the hypothetical investment options offered for inclusion in a
Deemed Investment Portfolio. A Participant may change such allocation at any time by notice to the
Investment Administrator, in accordance with such procedures as may be established by the
Investment Administrator. If the Participant fails to designate a Deemed Investment Portfolio,
Participant’s deferral shall be allocated among the hypothetical investment options in accordance
with the Participant’s most recent Deemed Investment Portfolio designation. If the Participant has
not previously made a Deemed Investment Portfolio designation, the Participant’s deferral shall be
allocated to the Advantus Money Market Portfolio (or the successor fund designated by the Benefit
Plans Committee or its designee), and the deferral shall remain allocated to such Portfolio until
such time as the Participant changes the allocation.

     (b) The Participant’s Account shall be adjusted periodically for notional gain or loss with
respect to the Deemed Investment Portfolio, determined by reference to the total actual return, net
of applicable fees and expenses, on the investment options in the Deemed Investment Portfolio for
the period in question. A Participant’s Account (reduced in accordance with Section 6.1(c)) shall
continue to be adjusted in accordance with this Section 6.1(b) during (i) any installment payment
period which may have been elected by the Participant, and (ii) the period following the
Participant’s death but prior to the payment of the balance of the Participant’s Account pursuant
to Section 7.4.

     (c) The Participant’s Account shall be reduced by any payments made to the Participant, his or
her beneficiary, estate or representative. Each payment shall be made from the Participant’s
Account on a pro rata basis from among the hypothetical investments designated for such Account by
the Participant.

     6.2. Funding Prohibitions. All payments to be made under the Plan shall be paid from
the general funds of the Company. All entries in a Participant’s Account shall be bookkeeping
entries only and shall not represent a special reserve or otherwise constitute a funding of the
Company’s unsecured promise to pay any amounts hereunder. Participants and their beneficiaries
shall have no right, title or interest in or to any investments which the Company may make to aid
it in meeting its obligations under the Plan. All such assets shall be the property solely of the
Company and shall be subject to the claims of the Company’s unsecured general creditors. To the
extent a Participant or any other person acquires a right to receive payments from the Company
under the Plan, such right shall be no greater than the right of any unsecured general creditor of
the Company and such person shall have only the unsecured promise of the Company that such payments
shall be made.

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ARTICLE VII

Payment 

     7.1. Time of Payment. Amounts credited to the Participant’s vested Account shall be
paid or commence to be paid in the January next following the Participant’s Separation from
Service; provided, however, that if a Participant is a Specified Employee, payment of the
Participant’s Account by reason of a Separation from Service occurring after June 30 of a Plan Year
shall not be made or commence before the second January following such Separation from Service or,
if earlier, the date of the Participant’s death.

     7.2. Form of Payment. When a Participant enters into a Deferred Compensation
Agreement, he or she shall elect to have his or her vested Account paid out either (i) in a single
lump sum or (ii) in a single lump sum if the Participant has not reached age fifty-five (55) or has
fewer than five (5) Years of Service at the time of Separation from Service, and otherwise in
annual installments over a period of years selected by the Participant, not to exceed fifteen (15)
years. Annual installments will be calculated by dividing the balance of the Account at the end of
the prior year by the number of installments remaining to be paid. If a Participant makes no
election at the time of entering into a Deferred Compensation Agreement with regard to the form in
which his or her Account is to be paid, the Participant shall be deemed to have elected payment in
a single lump sum.

     7.3. In-Service Withdrawals. Notwithstanding any other provision of the Plan to the
contrary, a Participant or beneficiary may be permitted to withdraw, but only to the extent
permitted by Section 409A, a part or all of the vested portion of the Participant’s Account,
provided, however, that such distribution shall be made only if the Administrator, in its sole
discretion, determines (i) that the Participant, or the Participant’s beneficiary, has experienced
an Unforeseeable Emergency or (ii) that an acceleration of payments is necessary in order for a
federal officer or employee in the executive branch to comply with an ethics agreement with the
federal government. If an Unforeseeable Emergency is determined to exist pursuant to clause (i)
above, the withdrawal may not include any amount attributable to Nondiscretionary Credits and may
not exceed the amount necessary to satisfy such emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into account the extent to
which such hardship is or may be relieved through reimbursement or compensation by insurance or
otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such
assets would not itself cause severe financial hardship). The entire vested balance in the
Participant’s Account may be withdrawn pursuant to clause (ii) above. The Administrator shall have
the right to require the Participant or beneficiary to submit such documentation as it deems
appropriate for the purpose of determining the existence of the circumstances described in clause
(i) or (ii) above.

     7.4. Payment on Death. Notwithstanding any provision of the Plan to the contrary, in
the event of the death of any Participant, the balance in each of the Participant’s Account shall
be paid to the Participant’s beneficiary in a single lump sum payment within thirty (30) days after
the date of such death. In the event no designated or alternate beneficiary can receive such
payment for any reason, payment will be made to the Participant’s surviving spouse, if any, or if
the Participant has not surviving spouse, then to the following beneficiaries if then living in the
following order of priority: (i) to the Participant’s children (including adopted children and

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stepchildren) in equal shares, (ii) to the Participant’s parents in equal shares, (iii) to the
Participant’s brothers and sisters in equal shares, and (iv) to the Participant’s estate. A
Participant may change any beneficiary designation at any time by notice in writing delivered to
the Administrator or his or her delegate. The interest of any beneficiary who dies before the
Participant will terminate unless otherwise specified by the Participant.

     7.5. Payment on Disability. If the Participant is determined to be Disabled, the
Participant’s Account shall be distributed to the Participant in a single lump sum by the later of
(i) the end of the calendar year in which the Participant becomes Disabled and (ii) the fifteenth
(15th) day of the third month following the date on which the Participant becomes Disabled,
provided the Participant has remained Disabled through such date.

     7.6. Certain Tax Matters. Payments hereunder shall be reduced by required tax
withholdings. To the extent any deferral or Credit under the Plan results in current “wages” for
FICA purposes, the Company may reduce other pay of the Participant to satisfy withholding
requirements related thereto; but if there is no other pay (or if the Company fails to withhold
from such other pay to satisfy its FICA withholding obligations), the Participant’s Account shall
be appropriately reduced by the amount of the required withholding.

     7.7. Distribution of Taxable Amounts. Notwithstanding anything in this Article VII to
the contrary, if any portion of an Account is determined by the Administrator to be includible by
reason of Section 409A in a Participant’s (or other person’s) taxable income, such portion shall be
paid to such Participant or other person.

     7.8. Distribution of Small Accounts. If, at the time a Participant’s vested Account
is scheduled to be paid or commence to be paid under Section 7.1, the amount credited to such
Account (together with any other amounts payable to a Participant pursuant to another “account
balance plan,” as defined in Treas. Regs. §1.409A-1(c)(2)(i)(A), with which the Plan is required to
be aggregated under Treas. Regs. §1.409A-1(c)(2)) is less than the dollar amount in effect under
Code section 402(g)(1)(B), the Participant’s vested Account shall be distributed in a single lump
sum as soon as administratively practicable, but in no event later than ninety (90) days after the
date the Account would otherwise have been distributed (or would otherwise have commenced to be
distributed) under Section 7.1.

ARTICLE VIII

Administration 

     8.1. Administration. The Plan shall be administered by the Administrator. The
Administrator shall have all powers necessary to carry out the provisions of the Plan, including,
without reservation, the power to delegate administrative matters to other persons and to interpret
the Plan in a manner consistent with its express provisions.

     8.2. Outside services. The Administrator may engage counsel and such clerical,
financial, investment, accounting, and other specialized services as the Administrator may deem
necessary or appropriate in the administration of the Plan. The Administrator shall be entitled to
rely upon any opinions, reports, or other advice furnished by counsel or other specialists engaged

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for that purpose and, in so relying, shall be fully protected in any action, determination, or
omission made in good faith.

     8.3. Indemnification. To the maximum extent permitted by law, the Administrator and
the members of the Benefit Plans Committee shall not be personally liable by reason of any contract
or other instrument executed in connection with the Plan by such person or on his or her behalf in
his or her capacity as Administrator or a member of the Benefit Plans Committee, nor for any
mistake of judgment made in good faith, and the Company shall indemnify and hold harmless, directly
from its own assets (including the proceeds of any insurance policy the premiums of which are paid
from the Company’s assets), such Administrator, the members of the Benefit Plans Committee, and
each other officer, employee, or director of the Company to whom any duty or power relating to the
administration or interpretation of the Plan may be delegated or allocated, against any cost or
expense (including counsel fees) or liability (including any sum paid in settlement of a claim with
the approval of the Company) arising out of any act or omission to act in connection with the Plan
unless arising out of such person’s own fraud or bad faith.

     8.4. Claims procedure. The Administrator shall adopt procedures for the filing and
review of claims in accordance with Section 503 of ERISA.

ARTICLE IX

Miscellaneous

     9.1. Termination of Plan. The Company may at any time by action of the Board
terminate this Plan. Upon termination of the Plan, no further deferrals will be permitted. Each
Participant’s Account will be maintained, credited and paid pursuant to the provisions of this Plan
and the Participant’s elections. Notwithstanding the foregoing, the Company may provide for the
immediate distribution of all Accounts upon termination of the Plan as a whole or with respect to
any Participant or group of Participants, but only to the extent permitted by Section 409A.

     9.2. Amendment. The Company may at any time amend this Plan in any respect, (i) in
the case of amendments which have a material effect on the cost to the Company of maintaining the
Plan, by action of the Board or, (ii) with respect to any other amendments, by action of the
Administrator after consultation with the Company’s Legal Department; provided, however, that no
such amendment shall materially or adversely affect the rights of any Participant under the Plan as
of the date of such amendment, except as the Company’s Legal Department determines to be necessary
or appropriate to comply with the requirements of Section 409A.

     9.3. No Alienation of Benefits. To the extent permitted by law, Participants and
beneficiaries shall not have the right to alienate, anticipate, commute, sell, assign, transfer,
pledge, encumber otherwise convey the right to receive any payments under this Plan, and any
payments under this Plan or rights thereto shall not be subject to the debts, liabilities,
contracts, engagements or torts of Participants or beneficiaries nor to attachment, garnishment or
execution, nor shall they be transferable by operation of law in the event of bankruptcy or
insolvency. Any

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attempt, whether voluntary or involuntary, to effect any such action shall be null, void, and
of no effect.

     9.4. No Rights to Continued Employment. Nothing contained herein shall be construed
as conferring upon an Executive the right to continue in the employ of the Company as an Executive
or in any other capacity.

     9.5. Headings. The headings of paragraphs are included solely for convenience of
reference and shall not control the meaning or interpretation of any of the provisions of the Plan.

     9.6. Applicable Law. The Plan shall be construed and administered under the laws of
the District of Columbia without regard to the choice of law provisions thereof.

     9.7. Section 409A Transition Relief. The Company may, by action of the Administrator,
authorize changes to time and form of payment elections but only to the extent consistent with the
transition rules, and during the transition relief period, provided under Section 409A and guidance
issued thereunder by the Internal Revenue Service.

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Exhibit 10.27

FANNIE MAE

RESTRICTED STOCK UNITS AWARD

Award Document

     This grant of units of Restricted Stock from Fannie Mae (the “Award”) is made to you as an
Eligible Employee (the “Awardee”) effective as of the date of grant set forth in the grant detail
available for you to view on the UBS website.

     1. Grant of Units. Pursuant to the provisions of the Fannie Mae Stock
Compensation Plan of 2003 (the “Plan”), Fannie Mae hereby grants to the Awardee, subject to the
terms and conditions of the Plan and subject further to the terms and conditions set forth in this
Award Document, restricted units (the “Restricted Stock units”) relating to the Common Stock of
Fannie Mae as set forth in the grant detail found on “Restricted” page under the
“Grants/Awards/Units” tab on the UBS website. Each unit represented by this Award represents the
unfunded and unsecured contractual right to the future delivery of one share of Common Stock,
subject to the restrictions herein and in the Plan.

     2. Definitions. Unless provided otherwise herein, all defined terms are written
with initial capital letters and shall have the meaning stated in the Plan.

     3. Terms and Conditions. By accepting the Award, the Awardee agrees that the
Award evidenced by the Award Document is subject to the following terms and conditions:

     (a) Pre-Vesting Limitations. The Restricted Stock units and the right to
receive payments from Fannie Mae in lieu of dividends or other distributions with respect
to the Common Stock represented by the units may not, except in accordance with Plan
provisions, be sold, assigned, transferred, exchanged, pledged, hypothecated or otherwise
disposed of or encumbered, either voluntarily or involuntarily. Restrictions shall lapse in
accordance with the vesting schedule set forth in the grant detail or, if earlier, upon the
Awardee’s Retirement, Early Retirement, Total Disability or death or at such earlier time
and in such circumstances, if any, as may be determined under the Plan (including, without
limitation, pursuant to Section 4.2(d) of the Plan if applicable). Notwithstanding the
foregoing, restrictions shall not lapse upon the Awardee’s Retirement or Early Retirement
if the Committee determines that the Awardee’s termination of employment is “For Cause.”
For the purpose of this Award, “For Cause” is defined in Section 5 below.

     (b) Treatment of Restricted Stock Units Upon Termination of Employment.
Unless otherwise provided by the Committee, the Awardee’s rights under the Restricted Stock
units as to which the restrictions have not lapsed in accordance with the provisions
hereof, including without limitation the right to the future delivery of shares of Common
Stock, shall be immediately forfeited upon the termination of employment of the Awardee
without payment of any consideration by Fannie Mae and without any consent or other action
by the Awardee, and all rights of Awardee with respect to such Restricted Stock units shall
thereupon cease.

     (c) Delivery of Shares; Shareholder Rights. As soon as practicable and in
all events not later than the 15th day of the third month following the vesting of a
Restricted Stock unit, Fannie Mae will cause one share of Common Stock to be transferred to
the Awardee (or, in the event of the Awardee’s death, except, as otherwise provided within
the Plan, to the Awardee’s estate). Notwithstanding the foregoing, in the event that the
Awardee is a Specified Employee, any Restricted Stock units that vest by reason of the
Awardee’s Separation from Service due to the Awardee’s Retirement or Early Retirement will
be paid six months and one day following the Awardee’s Retirement or Early Retirement.
Until such time as such share of Common Stock is transferred to the Awardee, the Awardee
shall not be treated as a shareholder with respect thereto and shall have no rights to
related dividends or other distributions, or voting rights; provided,
that during such periods, prior to the actual delivery of shares of Common Stock, as the Awardee
holds units hereunder, the Awardee shall be entitled to receive payments from Fannie Mae in
lieu of the

 

 

regular cash dividends that would have been payable had such units been actual
shares of Common Stock owned by the Awardee, each such payment in lieu of cash dividends to
be made on the same date as the date on which the related dividend is paid. Any such
payments in lieu of cash dividends from Fannie Mae shall be taxable as additional
compensation to the Awardee. If there is a stock split, stock dividend or similar change
affecting the Common Stock, Fannie Mae shall appropriately adjust the outstanding units of
Restricted Stock to reflect such change.

     (d) Payment of Taxes. This Award and Fannie Mae’s obligation to deliver
shares of Common Stock upon the vesting of this Award are conditioned upon the prompt and
timely payment by the Awardee to Fannie Mae of any and all taxes required to be withheld by
Fannie Mae with respect to the vesting of the Award or the delivery of shares of Common
Stock hereunder. The Awardee shall pay such taxes as follows: (i) if the withholding
obligation arises in connection with the delivery of shares of Common Stock, by electing to
have a portion of such shares with a value equal to the required withholding held back by
Fannie Mae; or (ii) by the delivery of a check in form satisfactory to the plan
administrator, or (iii) by wire transfer.

     (e) Award Confers No Rights with Respect to Continuance of Employment.
This Award shall not confer upon the Awardee any right with respect to continued employment
by Fannie Mae, nor shall it interfere in any way with the right of Fannie Mae to terminate
the Awardee’s employment at any time.

     (f) Compliance with Law and Regulations. This Award and the obligation
of Fannie Mae to deliver shares hereunder shall be subject to applicable federal and state
laws, rules and regulations, and to such approvals by any government or regulatory agency
as may be required. It is intended that this Award be construed consistent with the intent
that it comply with the requirements of Section 409A of the Code to the extent applicable.

     4. Awardee Bound by Plan and Administrator’s Records. Awardee is bound by all the
terms and provisions of the Plan and the records of the Plan’s administrator (including any
third-party recordkeeper). In the event of a conflict between the Award Document and the terms of
the Plan or the records of the Plan’s administrator, the terms of the Plan and records of the
Plan’s administrator shall control.

     5. Definition of “For Cause”. “For Cause” means Fannie Mae determines that the
Awardee has:

     (a) materially harmed Fannie Mae by, in connection with the Awardee’s performance of the
Awardee’s duties for Fannie Mae, engaging in dishonest or fraudulent actions or willful misconduct,
or performing the Awardee’s duties in a grossly negligent manner, or

     (b) been convicted of, or pleaded nolo contendere with respect to, a felony.

The Awardee will not be deemed to have been terminated For Cause following an event described in
(a) above unless Fannie Mae has provided (i) reasonable notice to the Awardee setting forth Fannie
Mae’s intention to terminate For Cause, (ii) where remedial action is appropriate and feasible, a
reasonable opportunity for such action, (iii) an opportunity for the Awardee, together with the
Awardee’s counsel, to be heard before the Compensation Committee of the Board of Directors or its
delegate, and (iv) the Awardee with a notice of termination stating that the Awardee was guilty of
the conduct set forth in (a) above and specifying the particulars thereof in detail. No act or
failure to act by the Awardee will be considered “willful” unless it is done, or omitted to be
done, by the Awardee in bad faith or without reasonable belief that the Awardee’s action or
omission was in the best interests of Fannie Mae.

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