Document:

EX-10.2

AMENDED AND RESTATED

EMPLOYMENT SECURITY AGREEMENT

This Employment Security Agreement (“Agreement”) is entered into as of this 30th day of
September, 2008 by and between Newell Rubbermaid Inc., a Delaware corporation (“Employer”), and
     (“Executive”).

WITNESSETH:

WHEREAS, Executive is currently employed by Employer as the      ;

WHEREAS, Employer desires to provide certain security to Executive in connection with
Executive’s employment with Employer; and

WHEREAS, Executive and Employer are parties to an Employment Security Agreement dated as of
     , which agreement is hereby amended, restated and replaced in its entirety with this
Agreement in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and
other good and valuable consideration, the receipt of which is hereby acknowledged, the parties
agree as follows:

1. Definitions. For purposes of this Agreement.

(a) “Affiliate” shall have the meaning set forth in Rule 12b-2 under the Securities Exchange
Act of 1934.

(b) “Base Salary” shall mean Executive’s annual base salary at the rate in effect on the date
of a Change in Control, or if greater, the rate in effect immediately prior to Executive’s
termination of employment with Employer.

(c) “Bonus” shall mean an amount determined by multiplying Executive’s Base Salary by the
payout percentage that would apply to Executive based on (i) the job position held by Executive on
the date of a Change in Control or the date of Executive’s termination of employment with Employer
(whichever position is higher at the time) and (ii) attainment of the targeted performance goals at
a 100% level, as determined under the Management Cash Bonus Plan of Employer, or any prior or
successor plan or arrangement covering Executive (such amount to be determined regardless of
whether Executive would otherwise be eligible for a Bonus under the terms of any such plan or
arrangement or the extent to which the performance goals are actually met).

(d) “Code” means the Internal Revenue Code of 1986, as amended.

(e) “Change in Control” shall mean the occurrence of any of the following events:

(i) any individual, partnership, firm, corporation, association, trust, unincorporated
organization or other entity (other than Employer or a trustee or other fiduciary holding
securities under an employee benefit plan of Employer), or any syndicate or group deemed to be a
person under Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), is or becomes the “beneficial owner” (as defined in Rule 13d-3 of the General Rules and
Regulations under the Exchange Act), directly or indirectly, of securities of Employer representing
25% or more of the combined voting power of Employer’s then outstanding securities entitled to vote
generally in the election of directors;

(ii) Employer is party to a merger, consolidation, reorganization or other similar transaction
with another corporation or other legal person unless, following such transaction, more than 50% of
the combined voting power of the outstanding securities of the surviving, resulting or acquiring
corporation or person or its parent entity entitled to vote generally in the election of directors
(or persons performing similar functions) is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial owners of
Employer’s outstanding securities entitled to vote generally in the election of directors
immediately prior to such transaction, in substantially the same proportions as their ownership,
immediately prior to such transaction, of Employer’s outstanding securities entitled to vote
generally in the election of directors;

(iii) Employer sells all or substantially all of its business and/or assets to another
corporation or other legal person unless, following such sale, more than 50% of the combined voting
power of the outstanding securities of the acquiring corporation or person or its parent entity
entitled to vote generally in the election of directors (or persons performing similar functions)
is then beneficially owned, directly or indirectly, by all or substantially all of the individuals
and entities who were the beneficial owners of Employer’s outstanding securities entitled to vote
generally in the election of directors immediately prior to such sale, in substantially the same
proportions as their ownership, immediately prior to such sale, of Employer’s outstanding
securities entitled to vote generally in the election of directors; or

(iv) during any period of two consecutive years or less, individuals who at the beginning of
such period constituted the Board of Directors of Employer (and any new Directors, whose
appointment or election by the Board of Directors or nomination for election by Employer’s
stockholders was approved by a vote of at least two-thirds of the Directors then still in office
who either were Directors at the beginning of the period or whose appointment, election or
nomination for election was so approved) cease for any reason to constitute a majority of the Board
of Directors.

(f) “Good Cause” shall exist if, and only if:

(i) Executive willfully engages in misconduct in the performance of his duties that causes
material harm to Employer; or

(ii) Executive is convicted of a criminal violation involving fraud or dishonesty.

Without limiting the generality of the foregoing, the following shall not constitute Good Cause:
the failure by Executive and/or Employer to attain financial or other business objectives; any
personal or policy disagreement between Executive and Employer or any member of the Board of
Directors of Employer; or any action taken by Executive in connection with his duties if Executive
acted in good faith and in a manner he reasonably believed to be in, and not opposed to, the best
interest of Employer and had no reasonable cause to believe his conduct was improper.
Notwithstanding anything herein to the contrary, in the event Employer terminates the employment of
Executive for Good Cause hereunder, Employer shall give Executive at least 30 days prior written
notice specifying in detail the reason or reasons for Executive’s termination.

(g) “Good Reason” shall exist if, without the Executive’s written consent:

(i) there is a material change in the nature or the scope of Executive’s authority or duties;

(ii) Executive is required to report (A) to an officer with a materially lesser position or
title than the officer to whom Executive reported on the date of the Change in Control, if
Executive is not the Chief Executive Officer of Employer, or (B) to other than the entire Board, if
Executive is the Chief Executive Officer of Employer;

(iii) there is a material reduction in Executive’s rate of base salary;

(iv) Employer changes by 50 miles or more the principal location in which Executive is
required to perform services;

(v) Employer terminates or materially amends, or terminates or materially restricts
Executive’s participation in, any Incentive Plan or Retirement Plan so that, when considered in the
aggregate with any substitute Plan or Plans, the Incentive Plans and Retirement Plans in which he
is participating materially fail to provide him with a level of benefits provided in the aggregate
by such Incentive Plans or Retirement Plans prior to such termination or amendment; or

(vi) Employer materially breaches the provisions of this Agreement;

A termination of Executive’s employment by Executive shall not be deemed to be for Good Reason
unless (1) Executive gives notice to Employer of the existence of the event or condition
constituting Good Reason within thirty (30) days after such event or condition initially occurs or
exists, (2) the Employer fails to cure such event or condition within thirty (30) days after
receiving such notice, and (3) Executive’s “separation from service” within the meaning of Section
409A of the Code occurs not later than ninety (90) days after such event or condition initially
occurs or exists (or, if earlier, the last day of the Term).

(h) “Incentive Plan” shall mean any incentive, bonus, equity-based or similar plan or
arrangement currently or hereafter made available by Employer or an Affiliate in which Executive is
eligible to participate.

(i) “Retirement Plan” shall mean any qualified or supplemental defined benefit retirement plan
or defined contribution retirement plan, currently or hereinafter made available by Employer or an
Affiliate in which Executive is eligible to participate.

(j) “Severance Period” shall mean the period beginning on the date the Executive’s employment
with Employer terminates under circumstances described in Section 3 and ending on the date
24 months thereafter.

(k) “Welfare Plan” shall mean any plan or arrangement providing health, prescription drug,
vision, dental, disability, survivor income or life insurance benefits that is currently or
hereafter made available by Employer or an Affiliate in which Executive is eligible to participate.

2. Term. The term of this Agreement shall be the period beginning on the date hereof and
terminating on the date 24 months after the date of Executive’s termination of employment (the
“Term”).

3. Termination of Employment. If a Change in Control occurs, Executive shall be entitled to
the benefits described in Section 4 if at any time during the 24-month period following the Change
in Control (i) the employment of Executive with Employer is terminated by Employer for any reason
other than Good Cause, or (ii) Executive terminates his employment with Employer for Good Reason.

4. Benefits Upon Termination of Employment. Upon termination of Executive’s employment with
Employer under circumstances described in Section 3 above:

(a) Employer shall pay Executive, in a lump sum as soon as practicable following Executive’s
termination of employment, but in no event later than 30 days following such termination, the sum
of:

(i) two (2) times the sum of the Executive’s Base Salary and the Executive’s Bonus; plus

(ii) the Executive’s Bonus multiplied by a fraction, the numerator of which is the number of
days in the fiscal year in which the date of termination occurs through the date of termination and
the denominator of which is 365.

(b) Executive shall be entitled to receive any and all benefits accrued under any other
Incentive Plans to the date of termination of employment, the amount, entitlement to, form and time
of payment of such benefits to be determined by the terms of such Incentive Plans. For purposes of
calculating Executive’s benefits under the Incentive Plans, Executive’s employment shall be deemed
to have terminated by reason of retirement under circumstances that have the most favorable result
for Executive thereunder.

(c) Executive’s benefits accrued or credited through the date of termination of employment
under the Newell Rubbermaid Supplemental Executive Retirement Plan, or its successor (“SERP”) and
the Newell Rubbermaid Inc. 2008 Deferred Compensation Plan, or its successor (the “2008 Deferred
Compensation Plan”) that are not vested as of the date of termination of employment shall be fully
vested and paid in accordance with the terms of the applicable plan (subject to any forfeiture
provisions applicable to the plans). Employer shall also pay to the Executive, in a lump sum as
soon as practicable following Executive’s termination of employment, but in no event later than
30 days following such termination, the sum of:

(i) the excess, if any, of (A) the actuarial equivalent of the benefit under the SERP
(utilizing actuarial assumptions no less favorable to the Executive than the most favorable of
those in effect under the SERP at any time from the day immediately prior to the Change in Control)
that the Executive would receive if the Executive’s employment continued for the entire Severance
Period, assuming for this purpose that: (1) all accrued benefits are fully vested, (2) the
Executive’s age and years of service is increased by the number of years that the Executive is
deemed to be so employed, (3) for purposes of determining the Executive’s compensation during each
year of the Severance Period, the base salary and bonus for each year shall be at the rate set
forth in Sections 1(b) and 1(c) (and shall exclude any of the severance benefits provided under
this Agreement), subject to any special adjustment provisions in the applicable plan and (4) solely
for purposes of calculating the benefit under this Section 4(c)(i)(A), the benefit under the Newell
Rubbermaid Pension Plan and the 2008 Deferred Compensation Plan shall be calculated without regard
to the additional age and service credit provided under this Section 4(c)(i) or Section 4(c)(ii),
over (B) the actuarial equivalent of the Executive’s actual benefit, if any, under the SERP as of
the Executive’s date of termination, plus

(ii) an amount equal to the sum of Employer matching or other Company contributions (but not
the Executive’s voluntary deferrals) under Employer’s qualified defined contribution plans in which
the Executive participates and the 2008 Deferred Compensation Plan that the Executive would receive
if the Executive’s employment continued during the Severance Period, assuming for this purpose that
(A) the Executive’s benefits under such plans are fully vested, (B) the Executive’s age and years
of service is increased by the number of years that the Executive is deemed to be so employed, (C)
Employer’s rate of matching or other contribution is equal to the greater of the rate in effect on
the date of the Change in Control, or if greater, the rate in effect immediately prior to the
Executive’s termination of employment, (D) for purposes of determining the Executive’s compensation
during each year of the Severance Period, the base salary and bonus for each year shall be at the
rate set forth in Sections 1(b) and 1(c) (and shall exclude any of the severance benefits provided
under this Agreement), subject to any special adjustment provisions in the applicable plan, and (E)
to the extent that Employer matching or other contributions are determined based on the
contributions or deferrals of the Executive, that the Executive’s contribution or deferral
elections, as appropriate, are those in effect immediately prior to the Executive’s termination of
employment, plus

(iii) an amount equal to the Executive’s benefits accrued or credited through the date of
termination of employment under the Employer’s qualified defined contribution plans that are not
vested as of the date of termination of employment.

(d) If upon the date of termination of Executive’s employment, Executive holds any awards with
respect to securities of Employer, (i) all such awards that are options shall immediately become
exercisable upon such date and shall be exercisable thereafter until the earlier of the third
anniversary of Executive’s termination of employment or the expiration of the term of the options;
(ii) all restrictions on any awards of restricted securities shall terminate or lapse; and
(iii) all performance goals applicable to any performance-based awards shall be deemed satisfied at
the highest level and paid in accordance with the terms of the applicable award agreement.

(e) During the Severance Period, Executive and his spouse and eligible dependents shall
continue to be covered by all Welfare Plans in which he or his spouse or eligible dependents were
participating immediately prior to the date of his termination of employment, as if he continued to
be an active employee of Employer, and Employer shall continue to pay the costs of such coverage
under such Welfare Plans on the same basis as is applicable to active employees covered thereunder;
provided that, if participation in any one or more of such Welfare Plans is not possible under the
terms thereof, Employer shall provide substantially identical benefits. Such coverage shall cease
if and when Executive obtains employment with another employer during the Severance Period and
becomes eligible for coverage under any substantially similar plans provided by his new employer.
If Executive or his spouse or eligible dependents are covered under any Welfare Plan that is a
group health plan as defined in Title I, Part 6 of the Employee Retirement Income Security Act of
1974 (“COBRA”) pursuant to this subsection (e), Executive and his spouse and eligible dependents
shall be eligible for COBRA continuation coverage. Executive shall be responsible for paying the
full cost of such coverage. The 18-month (or 29-month, if the COBRA disability extension is
applicable) COBRA period shall be measured beginning on the day after the end of the Severance
Period (or on such earlier date that the continuation coverage provided under this subsection (e)
otherwise ceases to apply).

(f) During the Severance Period, Employer shall reimburse Executive for the expenses of an
automobile in accordance with the arrangement, if any, in effect at the time of the termination of
Executive’s employment. Such reimbursement shall cease if and when Executive obtains employment
with another employer during the Severance Period and receives such reimbursement from his new
employer.

(g) Executive shall be entitled to payment for any accrued but unused vacation in accordance
with Employer’s policy in effect at Executive’s termination of employment in a lump sum as soon as
practicable following Executive’s termination of employment, but in no event later than 30 days
following such termination. Executive shall not be entitled to receive any payments or other
compensation attributable to vacation he would have earned had his employment continued during the
Severance Period, and Executive waives any right to receive such compensation.

(h) Employer shall, at Employer’s expense, provide Executive with six months of executive
outplacement services with a professional outplacement firm selected by Employer; provided that the
outplacement services must be used by the Executive by no later than the second calendar year
following the calendar year in which the termination of employment occurred.

(i) Executive shall not be entitled to reimbursement for fringe benefits during the Severance
Period, such as dues and expenses related to club memberships, automobile telephones, expenses for
professional services and other similar perquisites.

5. Setoff. Employer’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which Employer or any of its affiliated
companies may have against the Executive or others. In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the amounts payable to
the Executive under any of the provisions of this Agreement and such amounts shall not be reduced
whether or not the Executive obtains other employment, except as expressly provided in subsections
4(e) and 4(f).

6. Death. If Executive dies during the Severance Period, all amounts payable hereunder to
Executive shall, to the extent not paid, be paid to his surviving spouse or his designated
beneficiary, or if none, then to his estate. Executive’s surviving spouse and eligible dependents
shall continue to be covered under all applicable Welfare Plans during the remainder of the
Severance Period. On the death of the surviving spouse and eligible dependants, no further Welfare
Plan coverage shall be provided (other than any coverage required pursuant to Title I, Part 6 of
COBRA), and no further benefits shall be paid, except for benefits accrued under any Incentive
Plans and Retirement Plans to the date of Executive’s termination of employment, to the extent such
benefits continue following Executive’s death pursuant to the term of such Plans.

7. Excise Tax Gross-Up Payment.

(a) In the event that it is determined that any payment to or for the benefit of Executive
under the terms of this Agreement, or under any other agreement, plan or arrangement with Employer
(a “Payment”), would be subject to any excise tax imposed pursuant to Section 4999 of the Internal
Revenue Code of 1986, as amended, or any comparable provision of state or local law (an “Excise
Tax”), Employer agrees that it shall pay to Executive, in addition to any other payments required
to be made pursuant to this Agreement, an additional cash amount (a “Gross-Up Payment”) equal to
the sum of (i) the amount of such Excise Tax plus (ii) all Attributable Taxes and Penalties. For
purposes of this Agreement, “Attributable Taxes and Penalties” means all taxes, interest and
penalties, including, without limitation, any federal, state and local income taxes and any Excise
Taxes, which become payable by Executive as a result of the receipt of the Gross-Up Payment or the
assessment of any Excise Tax against Executive. It is intended that under this provision Employer
shall indemnify Executive in such a manner that Executive shall not suffer any loss or expense by
reason of the assessment of any Excise Tax or the reimbursement of Executive for payment of any
such Excise Tax. Employer’s obligation to make Gross-Up Payments under this Section 7 shall not be
conditioned upon Executive’s termination of employment.

(b) In determining the amount of any Gross-Up Payment payable pursuant to subsection
(a) above, Executive shall be deemed to pay federal income taxes at the highest marginal rate of
federal income taxation in the calendar year in which the Gross-Up Payment is to be made, and state
and local taxes at the highest marginal rates of taxation for such year in the state and locality
of Executive’s residence. For such purposes, federal income taxes shall be determined net of the
maximum reduction in such federal income taxes that could be obtained from the deduction of such
state and local taxes.

(c) Within 30 days after Executive provides written notice to Employer that there has been a
Payment, a nationally recognized accounting firm selected by Employer (“Accounting Firm”) shall
make a determination as to whether any Excise Tax should be reported and paid by Executive, and if
applicable, the amount of such Excise Tax and the related Gross-Up Payment. Employer shall pay the
amount of such Gross-Up Payment to Executive, and Executive shall report and pay such Excise Tax as
provided in Section 7(f). Employer shall be responsible for all fees and expenses connected with
the determinations by the Accounting Firm. All determinations required to be made under this
Section 7, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be
made by the Accounting Firm.

(d) In the event that Executive is at any time required to pay any Excise Tax (or any related
interest or penalties) in addition to any amount determined pursuant to subsection (c), Employer
shall pay Executive a Gross-Up Payment determined with respect to such additional Excise Tax (and
any such additional interest and penalties) pursuant to the same notice and calculation procedures
outlined in subsection (c). In the event that Executive receives any refund of any Excise Tax
with respect to which Executive has previously received a Gross-Up Payment hereunder, Executive
shall promptly pay to Employer the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto).

(e) Executive agrees to notify Employer in the event of any audit or other proceeding by the
IRS or any taxing authority in which the IRS or other taxing authority asserts that any Excise Tax
should be assessed against Executive and to cooperate with Employer in contesting any such proposed
assessment with respect to such Excise Tax (a “Proposed Assessment”). Executive agrees not to
settle any Proposed Assessment without the consent of Employer. If Employer does not settle the
Proposed Assessment, or does not consent to allow Executive to settle the Proposed Assessment,
within 30 days following such demand therefor, Employer shall indemnify and hold harmless Executive
(i) with respect to any additional interest and/or penalties that Executive is required to pay by
reason of the delay in finally resolving Executive’s tax liability, (ii) with respect to any taxes,
interest and penalties that Executive is required to pay by reason of any indemnification payment
under this subsection (e), and (iii) all costs and expenses incurred by Executive in connection
with such audit or proceeding.

(f) Any Gross-Up Payment shall be paid by Employer within 30 calendar days of receipt of the
Accounting Firm’s determination as described in this Section 7, or such later date as provided in
Section 14, provided that Executive submits written notice of a Payment no later than 75 calendar
days prior to the end of the calendar year next following the calendar year in which the Excise Tax
on a Payment is remitted to the Internal Revenue Service or any other applicable taxing authority,
so that Employer can make the payment within the time period required by Section 409A of the Code.
The Gross-Up Payment, if any, shall be paid to the Executive; provided that Employer, in its sole
discretion, may withhold and pay over to the Internal Revenue Service or any other applicable
taxing authority, for the benefit of the Executive, all or any portion of any Gross-Up Payment, and
the Executive hereby consents to such withholding. Any reimbursement or payment by Employer of
expenses incurred by the Executive in connection with a tax audit or litigation relating to the
Excise Tax, as provided for in this Section 7, shall be paid within 30 calendar days of written
request by the Executive, or such later date as provided in Section 14, provided that Executive
submits the written request no later than 75 calendar days prior to the end of the calendar year
following the calendar year in which the Excise Taxes that are subject to the audit or litigation
are remitted to the Internal Revenue Service or any other applicable taxing authority, or where as
a result of the audit or litigation, no Excise Taxes are remitted, the end of the calendar year
next following the calendar year in which the audit is completed or there is a final and
nonappealable settlement or other resolution of the litigation, so that Employer can make the
payment within the time period required by Section 409A of the Code.

8. Restrictive Covenants. During the Term of this Agreement, Executive shall not be
associated, directly or indirectly, as an employee, proprietor, stockholder, partner, agent,
representative, officer, or otherwise, with the operation of any business that is competitive with
any line of business of Employer or any Affiliate for which Executive has provided substantial
services without the prior written consent of Employer, which shall not unreasonably be withheld,
except that Executive’s ownership (or that of his wife and children) of publicly-traded securities
of any such business having a cost of not more than $250,000 shall not be considered a violation of
this Section. For purposes of the preceding sentence, Executive shall be considered as the
“stockholder” of any equity securities owned by his spouse and all relatives and children residing
in Executive’s principal residence.

9. No Solicitation of Representatives and Employees. Executive agrees that he shall not,
during the Term of this Agreement, directly or indirectly, in his individual capacity or otherwise,
induce, cause, persuade, or attempt to do any of the foregoing in order to cause, any
representative, agent or employee of Employer or any Affiliate to terminate such person’s
employment relationship with Employer or any Affiliate, or to violate the terms of any agreement
between said representative, agent or employee and Employer or any Affiliate.

10. Confidentiality. Executive acknowledges that preservation of a continuing business
relationship between Employer or its Affiliates and their respective customers, representatives,
and employees is of critical importance to the continued business success of Employer and that it
is the active policy of Employer and its Affiliates to guard as confidential the identity of its
customers, trade secrets, pricing policies, business affairs, representatives and employees. In
view of the foregoing, Executive agrees that he shall not, during the Term of this Agreement and
thereafter, without the prior written consent of Employer (which consent shall not be withheld
unreasonably), disclose to any person or entity any information concerning the business of, or any
customer, representative, agent or employee of, Employer or its Affiliates which was obtained by
Executive in the course of his employment by Employer. This section shall not be applicable if and
to the extent Executive is required to testify in a legislative, judicial or regulatory proceeding
pursuant to an order of Congress, any state or local legislature, a judge, or an administrative law
judge.

11. Executive Assignment. No interest of Executive or his spouse or any other beneficiary
under this Agreement, or any right to receive any payment or distribution hereunder, shall be
subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other
alienation or encumbrance of any kind, nor may such interest or right to receive a payment or
distribution be taken, voluntarily or involuntarily, for the satisfaction of the obligations or
debts of, or other claims against, Executive or his spouse or other beneficiary, by operation of
law or otherwise, other than pursuant to the terms of a qualified domestic relations order to which
Executive is a party.

12. Funding.

(a) Prior to a Change in Control, all rights of Executive and his spouse or other beneficiary
under this Agreement shall at all times be entirely unfunded and no provision shall at any time be
made with respect to segregating any assets of Employer for payment of any amounts due hereunder.
Neither Executive nor his spouse or other beneficiary shall have any interest in or rights against
any specific assets of Employer, and Executive and his spouse or other beneficiary shall have only
the rights of a general unsecured creditor of Employer.

(b) No later than five days following a Change in Control, Employer shall establish an
irrevocable grantor trust, substantially in the form of the model trust agreement set forth in
Internal Revenue Service Revenue Procedure 96-24, or any subsequent Revenue Procedure, and shall
make a contribution to the trust in an amount equal to the cash payments that would be made to
Executive pursuant to Sections 4 and 7 upon a termination of his employment under circumstances
described in Section 3, such amount to be determined as if Executive’s termination of employment
occurred on the date of the Change in Control. At six-month intervals commencing from the date of
the Change in Control, Employer shall recalculate the amount necessary to fully fund the
above-described benefits and, if the amount exceeds the fair market value of the assets then held
in the trust, Employer shall promptly deposit an amount equal to such excess. Employer shall not
terminate the trust until the Term of the Agreement has ended and all cash payments described in
Section 4 to which Executive is entitled have been made to Executive. Employer shall provide
Executive with written confirmation of the establishment of the trust and the deposit of the
required amount on his behalf, including a written accounting of the calculation of such amounts.
Employer’s failure to establish a trust and provide such written notice shall constitute a material
breach of this Agreement. Notwithstanding the foregoing, this Section 12(b) shall be construed and
applied in a manner so as to avoid the application of Section 409A(b)(3) of the Code.

13. Legal Expenses. Employer shall pay as incurred (within 10 calendar days following
Employer’s receipt of an invoice from the Executive) Executive’s out-of-pocket expenses, including
attorney’s fees, incurred by Executive at any time from the date of this Agreement through the
Executive’s remaining lifetime or, if longer, through the 20th anniversary of the date of the
Change of Control, in connection with any action taken to enforce this Agreement or construe or
determine the validity of this Agreement or otherwise in connection herewith, including any claim
or legal action or proceeding, whether brought by Executive or Employer or another party, and
whether or not Executive is successful with respect to such action taken; provided, that the
Executive shall have submitted an invoice for such fees and expenses at least 15 calendar days
before the end of the calendar year next following the calendar year in which such fees and
expenses were incurred. The amount of such legal fees and expenses that Employer is obligated to
pay in any given calendar year shall not affect the legal fees and expenses that Employer is
obligated to pay in any other calendar year, and the Executive’s right to have Employer pay such
legal fees and expenses may not be liquidated or exchanged for any other benefit. Employer’s
obligation to pay Executive’s eligible legal fees and expenses under this Section 13 shall not be
conditioned upon Executive’s termination of employment.

14. Section 409A.

(a) The amounts payable pursuant to Section 4 above are intended to be separate payments that
are exempt from Section 409A of the Code by reason of the “short-term deferral” exception or the
separation pay exceptions set forth in Section 1.409A-1(b)(9)(iii) or Section 1.409A-1(b)(9)(v) of
the Treasury Regulations. To the extent that an amount payable under Section 4 does not comply
with any of these exceptions, then they shall be subject to the following rules:

(i) Notwithstanding anything contained in this Agreement to the contrary, if the Executive is
a “specified employee,” as determined under Employer’s policy for determining specified employees
on the date of his termination of employment, then to the extent required in order to comply with
Section 409A of the Code, all payments, benefits or reimbursements paid or provided under this
Agreement that constitute a “deferral of compensation” within the meaning of Section 409A of the
Code, that are provided as a result of a “separation from service” within the meaning of Section
409A and that would otherwise be paid or provided during the first six months following the date of
such termination of employment shall be accumulated through and paid or provided (together with
interest at the applicable federal rate under Section 7872(f)(2)(A) of the Code in effect on the
date of termination of employment) within 30 days after the first business day following the six
month anniversary of such termination of employment (or, if the Executive dies during such
six-month period, within 30 days after the Executive’s death).

(ii) The benefits described in paragraphs (e), (f) and (h) of Section 4 that are taxable
benefits (and that are not disability pay or death benefit plans within the meaning of Section 409A
of the Code) are intended to comply, to the maximum extent possible, with the exception to Section
409A of the Code set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations. To the extent
that any of those benefits either do not qualify for that exception, or are provided beyond the
applicable time periods set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations, then
they shall be subject to the following additional rules: (1) any reimbursement of eligible expenses
shall be paid within 60 calendar days following Executive’s written request for reimbursement, or
such later date set forth in Section 14(a); provided that the Executive provides written notice no
later than 75 calendar days prior to the last day of the calendar year following the calendar year
in which the expense was incurred so that Employer can make the reimbursement within the time
periods required by Section 409A of the Code; (2) the amount of expenses eligible for
reimbursement, or in-kind benefits provided, during any calendar year shall not affect the amount
of expenses eligible for reimbursement, or in-kind benefits to be provided, during any other
calendar year; and (3) the right to reimbursement or in-kind benefits shall not be subject to
liquidation or exchange for another benefit.

(b) For purposes of this Agreement, the phrase “termination of employment” or words or phrases
of similar import shall mean a “separation from service” with the Employer within the meaning of
Section 409A of the Code. In this regard, Employer and the Executive shall take all steps
necessary (including with regard to any post-termination services by the Executive) to ensure that
(i) any termination of employment under this Agreement constitutes a “separation from service”
within the meaning of Section 409A of the Code, and (ii) the date on which such separation from
service takes place shall be the date of the termination of employment for purposes of this
Agreement.

(c) It is intended that the payments and benefits provided under this Agreement shall either
be exempt from the application of, or comply with, the requirements of Section 409A of the Code.
This Agreement shall be construed, administered, and governed in a manner that effects such intent,
and the Employer shall not take any action that would be inconsistent with such intent. Without
limiting the foregoing, the payments and benefits provided under this Agreement may not be
deferred, accelerated, extended, paid out or modified in a manner that would result in the
imposition of an additional tax under Section 409A of the Code upon Executive. Although the
Employer shall use its best efforts to avoid the imposition of taxation, interest and penalties
under Section 409A of the Code, the tax treatment of the benefits provided under this Agreement is
not warranted or guaranteed. Neither the Employer, its Affiliates nor their respective directors,
officers, employees or advisers shall be held liable for any taxes, interest, penalties or other
monetary amounts owed by the Executive or other taxpayer as a result of the Agreement.

15. Waiver. No waiver by any party at any time of any breach by any other party of, or
compliance with, any condition or provision of this Agreement to be performed by any other party
shall be deemed a waiver of any other provisions or conditions at the same time or at any prior or
subsequent time.

16. Applicable Law. This Agreement shall be construed and interpreted pursuant to the laws of
Delaware.

17. Entire Agreement. This Agreement contains the entire Agreement between Employer and
Executive and supersedes any and all previous agreements, written or oral, between the parties
relating to severance benefits in the event of a Change in Control, including any previous
Employment Security Agreement between Executive and Employer. No amendment or modification of the
terms of this Agreement shall be binding upon the parties hereto unless reduced to writing and
signed by Employer and Executive. 

18. No Employment Contract. Nothing contained in this Agreement shall be construed to be an
employment contract between Executive and Employer. Executive is employed at will and Employer may
terminate his employment at any time, with or without cause.

19. Severability. In the event any provision of this Agreement is held illegal or invalid, the
remaining provisions of this Agreement shall not be affected thereby.

20. Employment with an Affiliate. If Executive is employed by Employer and an Affiliate, or
solely by an Affiliate, on the date of termination of employment of Executive under circumstances
described in Section 3, then (a) employment or termination of employment as used in this Agreement
shall mean employment or termination of employment of Executive with Employer and such Affiliate,
or with such Affiliate, as applicable, and related references to Employer shall also include
Affiliate, as applicable, and (b) the obligations of Employer hereunder shall be satisfied by
Employer and/or such Affiliate as Employer, in its discretion, shall determine; provided that
Employer shall remain liable for such obligations to the extent not satisfied by such Affiliate.

21. Successors. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, representatives and successors. Any reference in this Agreement
to Employer shall be deemed a reference to any successor (whether direct or indirect, by purchase
of stock or assets, merger or consolidation or otherwise) to all or substantially all of the
business and/or assets of Employer; provided that Executive’s employment by a successor Employer
shall not be deemed a termination of Executive’s employment with Employer (unless otherwise
required in order to comply with the definition of “separation from service” under Section 409A of
the Code).

22. Non-exclusivity. Except with respect to agreements regarding severance payments described
in Section 16, the provisions of this Agreement shall not reduce any amounts otherwise payable, or
in any way diminish Executive’s existing rights, or rights which would accrue solely as a result of
the passage of time, under any other employment agreement or other contract, plan or arrangement
with Employer or an Affiliate.

23. Notice. Notices required under this Agreement shall be in writing and sent by registered
mail, return receipt requested, to the following addresses or to such other address as the party
being notified may have previously furnished to the others by written notice.

	 	 	 	 	 
	If to Employer:
	 	Newell Rubbermaid Inc.
	 
	 	Three Glenlake Parkway
	 
	 	Atlanta, Georgia  30328
	 
	 	Attention:  General Counsel
	If to Executive:
	 	 	 	 
	 
	 	 	 	 

24. Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original.

IN WITNESS WHEREOF, the parties have executed this Employment Security Agreement as of the day
and year written above.

NEWELL RUBBERMAID INC.

By:

Title:

EXECUTIVEEX-4.1

Exhibit 4.1

AMENDED AND RESTATED SENIOR PREFERRED STOCK PURCHASE AGREEMENT

AMENDED AND RESTATED SENIOR PREFERRED STOCK PURCHASE AGREEMENT (this “Agreement”)
dated as of September 26, 2008, between the UNITED STATES DEPARTMENT OF THE TREASURY
(“Purchaser”) and FEDERAL NATIONAL MORTGAGE ASSOCIATION (“Seller”), acting through
the Federal Housing Finance Agency (the “Agency”) as its duly appointed conservator (the
Agency in such capacity, “Conservator”). Reference is made to Article 1 below for the
meaning of capitalized terms used herein without definition.

Background

A. The Agency has been duly appointed as Conservator for Seller pursuant to Section 1367(a)
of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (as amended, the
“FHE Act”). Conservator has determined that entry into this Agreement is (i) necessary to
put Seller in a sound and solvent condition; (ii) appropriate to carry on the business of Seller
and preserve and conserve the assets and property of Seller; and (iii) otherwise consistent with
its powers, authorities and responsibilities.

B. Purchaser is authorized to purchase obligations and other securities issued by Seller
pursuant to Section 304(g) of the Federal National Mortgage Association Charter Act, as amended
(the “Charter Act”). The Secretary of the Treasury has determined, after taking into
consideration the matters set forth in Section 304(g)(1)(C) of the Charter Act, that the purchases
contemplated herein are necessary to (i) provide stability to the financial markets; (ii) prevent
disruptions in the availability of mortgage finance; and (iii) protect the taxpayer.

C. Purchaser and Seller executed and delivered the Senior Preferred Stock Purchase Agreement
dated as of September 7, 2008 (the “Original Agreement”), and the parties thereto desire to
amend and restate the Original Agreement in its entirety as set forth herein.

THEREFORE, the parties hereto agree as follows:

Terms and Conditions

	1.	 	DEFINITIONS

As used in this Agreement, the following terms shall have the meanings set forth below:

“Affiliate” means, when used with respect to a specified Person (i) any direct or indirect holder
or group (as defined in Sections 13(d) and 14(d) of the Exchange Act) of holders of 10.0% or more
of any class of capital stock of such Person and (ii) any current or former director or officer of
such Person, or any other current or former employee of such Person that currently exercises or
formerly exercised a material degree of Control over such Person, including without limitation each
current or former Named Executive Officer of such Person.

“Available Amount” means, as of any date of determination, the lesser of (a) the Deficiency Amount
as of such date and (b) the Maximum Amount as of such date.

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks
are authorized to close under United States federal law and the law of the State of New York.

“Capital Lease Obligations” of any Person shall mean the obligations of such Person to pay rent or
other amounts under any lease of (or other similar arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP and, for purposes
hereof, the amount of such obligations at any time shall be the capitalized amount thereof at such
time determined in accordance with GAAP.

“Control” shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

“Deficiency Amount” means, as of any date of determination, the amount, if any, by which (a) the
total liabilities of Seller exceed (b) the total assets of Seller (such assets excluding the
Commitment and any unfunded amounts thereof), in each case as reflected on the balance sheet of
Seller as of the applicable date set forth in this Agreement, prepared in accordance with GAAP;
provided, however, that:

(i) for the avoidance of doubt, in measuring the Deficiency Amount liabilities shall
exclude any obligation in respect of any capital stock of Seller, including the Senior
Preferred Stock contemplated herein;

(ii) in the event that Seller becomes subject to receivership or other liquidation process
or proceeding, “Deficiency Amount” shall mean, as of any date of determination, the amount,
if any, by which (a) the total allowed claims against the receivership or other applicable
estate (excluding any liabilities of or transferred to any LLRE (as defined in Section
5.4(a)) created by a receiver) exceed (b) the total assets of such receivership or other
estate (excluding the Commitment, any unfunded amounts thereof and any assets of or
transferred to any LLRE, but including the value of the receiver’s interest in any LLRE);

(iii) to the extent Conservator or a receiver of Seller, or any statute, rule, regulation
or court of competent jurisdiction, specifies or determines that a liability of Seller
(including without limitation a claim against Seller arising from rescission of a purchase
or sale of a security issued by Seller (or guaranteed by Seller or with respect to which
Seller is otherwise liable) or for damages arising from the purchase, sale or retention of
such a security) shall be subordinated (other than pursuant to a contract providing for such
subordination) to all other liabilities of Seller or shall be treated on par with any class
of equity of Seller, then such liability shall be excluded in the calculation of Deficiency
Amount; and

(iv) the Deficiency Amount may be increased above the otherwise applicable amount by the
mutual written agreement of Purchaser and Seller, each acting in its sole discretion.

“Designated Representative” means Conservator or (a) if Conservator has been superseded by a
receiver pursuant to Section 1367(a) of the FHE Act, such receiver, or (b) if Seller is not in
conservatorship or receivership pursuant to Section 1367(a) of the FHE Act, Seller’s chief
financial officer.

“Director” shall mean the Director of the Agency.

“Effective Date” means the date on which this Agreement shall have been executed and delivered by
both of the parties hereto.

“Equity Interests” of any Person shall mean any and all shares, interests, rights to purchase or
otherwise acquire, warrants, options, participations or other equivalents of or interests in
(however designated) equity, ownership or profits of such Person, including any preferred stock,
any limited or general partnership interest and any limited liability company membership interest,
and any securities or other rights or interests convertible into or exchangeable for any of the
foregoing.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
of the SEC promulgated thereunder.

“GAAP” means generally accepted accounting principles in effect in the United States as set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board from time to time.

“Indebtedness” of any Person means, for purposes of Section 5.5 only, without duplication, (a) all
obligations of such Person for money borrowed by such Person, (b) all obligations of such Person
evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person
under conditional sale or other title retention agreements relating to property or assets purchased
by such Person, (d) all obligations of such Person issued or assumed as the deferred purchase price
of property or services, other than trade accounts payable, (e) all Capital Lease Obligations of
such Person, (f) obligations, whether contingent or liquidated, in respect of letters of credit
(including standby and commercial), bankers’ acceptances and similar instruments and (g) any
obligation of such Person, contingent or otherwise, guaranteeing or having the economic effect of
guaranteeing any Indebtedness of the types set forth in clauses (a) through (f) payable by another
Person other than Mortgage Guarantee Obligations.

“Liquidation End Date” means the date of completion of the liquidation of Seller’s assets.

“Maximum Amount” means, as of any date of determination, $100,000,000,000 (one hundred billion
dollars), less the aggregate amount of funding under the Commitment prior to such date.

“Mortgage Assets” of any Person means assets of such Person consisting of mortgages, mortgage
loans, mortgage-related securities, participation certificates, mortgage-backed commercial paper,
obligations of real estate mortgage investment conduits and similar assets, in each case to the
extent such assets would appear on the balance sheet of such Person in accordance with GAAP as in
effect as of the date hereof (and, for the avoidance of doubt, without giving effect to any change
that may be made hereafter in respect of Statement of Financial Accounting Standards No. 140 or any
similar accounting standard).

“Mortgage Guarantee Obligations” means guarantees, standby commitments, credit enhancements and
other similar obligations of Seller, in each case in respect of Mortgage Assets.

“Named Executive Officer” has the meaning given to such term in Item 402(a)(3) of Regulation S-K
under the Exchange Act, as in effect on the date hereof.

“Person” shall mean any individual, corporation, limited liability company, partnership, joint
venture, association, joint-stock company, trust, estate, unincorporated organization or government
or any agency or political subdivision thereof, or any other entity whatsoever.

“SEC” means the Securities and Exchange Commission.

“Senior Preferred Stock” means the Variable Liquidation Preference Senior Preferred Stock of
Seller, substantially in the form of Exhibit A hereto.

“Warrant” means a warrant for the purchase of common stock of Seller representing 79.9% of the
common stock of Seller on a fully-diluted basis, substantially in the form of Exhibit B hereto.

	2.	 	COMMITMENT

2.1. Commitment. Purchaser hereby commits to provide to Seller, on the terms and conditions
set forth herein, immediately available funds in an amount up to but not in excess of the Available
Amount, as determined from time to time (the “Commitment”); provided, that in no
event shall the aggregate amount funded under the Commitment exceed $100,000,000,000 (one hundred
billion dollars). The liquidation preference of the Senior Preferred Stock shall increase in
connection with draws on the Commitment, as set forth in Section 3.3 below.

2.2. Quarterly Draws on Commitment. Within fifteen (15) Business Days following the
determination of the Deficiency Amount, if any, as of the end of each fiscal quarter of Seller
which ends on or before the Liquidation End Date, the Designated Representative may, on behalf of
Seller, request that Purchaser provide immediately available funds to Seller in an amount up to but
not in excess of the Available Amount as of the end of such quarter. Any such request shall be
valid only if it is in writing, is timely made, specifies the account of Seller to which such funds
are to be transferred, and contains a certification of the Designated Representative that the
requested amount does not exceed the Available Amount as of the end of the applicable quarter.
Purchaser shall provide such funds within sixty (60) days of its receipt of such request or,
following any determination by the Director that the Director will be mandated by law to appoint a
receiver for Seller if such funds are not received sooner, such shorter period as may be necessary
to avoid such mandatory appointment of a receiver if reasonably practicable taking into
consideration Purchaser’s access to funds.

2.3. Accelerated Draws on Commitment. Immediately following any determination by the Director
that the Director will be mandated by law to appoint a receiver for Seller prior to the Liquidation
End Date unless Seller’s capital is increased by an amount (the “Special Amount”) up to but
not in excess of the then current Available Amount (computed based on a balance sheet of Seller
prepared in accordance with GAAP that differs from the most recent balance sheet of Seller
delivered in accordance with Section 5.9(a) or (b)) on a date that is prior to the date that funds
will be available to Seller pursuant to Section 2.2, Conservator may, on behalf of Seller, request
that Purchaser provide to Seller the Special Amount in immediately available funds. Any such
request shall be valid only if it is in writing, is timely made, specifies the account of Seller to
which such funds are to be transferred, and contains certifications of Conservator that (i) the
requested amount does not exceed the Available Amount (including computations in reasonable detail
and satisfactory to Purchaser of the then existing Deficiency Amount) and (ii) the requested amount
is required to avoid the imminent mandatory appointment of a receiver for Seller. Purchaser shall
provide such funds within thirty (30) days of its receipt of such request or, if reasonably
practicable taking into consideration Purchaser’s access to funds, any shorter period as may be
necessary to avoid mandatory appointment of a receiver.

2.4. Final Draw on Commitment. Within fifteen (15) Business Days following the determination
of the Deficiency Amount, if any, as of the Liquidation End Date (computed based on a balance sheet
of Seller as of the Liquidation End Date prepared in accordance with GAAP), the Designated
Representative may, on behalf of Seller, request that Purchaser provide immediately available funds
to Seller in an amount up to but not in excess of the Available Amount as of the Liquidation End
Date. Any such request shall be valid only if it is in writing, is timely made, specifies the
account of Seller to which such funds are to be transferred, and contains a certification of the
Designated Representative that the requested amount does not exceed the Available Amount (including
computations in reasonable detail and satisfactory to Purchaser of the Deficiency Amount as of the
Liquidation End Date). Purchaser shall provide such funds within sixty (60) days of its receipt of
such request.

2.5. Termination of Purchaser’s Obligations. Subject to earlier termination pursuant to
Section 6.7, all of Purchaser’s obligations under and in respect of the Commitment shall terminate
upon the earliest of: (a) if the Liquidation End Date shall have occurred, (i) the payment in full
of Purchaser’s obligations with respect to any valid request for funds pursuant to Section 2.4 or
(ii) if there is no Deficiency Amount on the Liquidation End Date or if no such request pursuant to
Section 2.4 has been made, the close of business on the 15th Business Day following the
determination of the Deficiency Amount, if any, as of the Liquidation End Date; (b) the payment in
full of, defeasance of or other reasonable provision for all liabilities of Seller, whether or not
contingent, including payment of any amounts that may become payable on, or expiry of or other
provision for, all Mortgage Guarantee Obligations and provision for unmatured debts; and (c) the
funding by Purchaser under the Commitment of an aggregate of $100,000,000,000 (one hundred billion
dollars). For the avoidance of doubt, the Commitment shall not be terminable by Purchaser solely
by reason of (i) the conservatorship, receivership or other insolvency proceeding of Seller or (ii)
the Seller’s financial condition or any adverse change in Seller’s financial condition.

	3.	 	PURCHASE OF SENIOR PREFERRED STOCK AND WARRANT; FEES

3.1. Initial Commitment Fee. In consideration of the Commitment, and for no additional
consideration, on the Effective Date (or as soon thereafter as is practicable) Seller shall sell
and issue to Purchaser, and Purchaser shall purchase from Seller, (a) one million (1,000,000)
shares of Senior Preferred Stock, with an initial liquidation preference equal to $1,000 per share
($1,000,000,000 (one billion dollars) liquidation preference in the aggregate), and (b) the
Warrant.

3.2. Periodic Commitment Fee. (a) Commencing March 31, 2010, Seller shall pay to Purchaser
quarterly, on the last day of March, June, September and December of each calendar year (each a
“Periodic Fee Date”), a periodic commitment fee (the “Periodic Commitment Fee”).
The Periodic Commitment Fee shall accrue from January 1, 2010.

(b) The Periodic Commitment Fee is intended to fully compensate Purchaser for the support
provided by the ongoing Commitment following December 31, 2009. The amount of the Periodic
Commitment Fee shall be set not later than December 31, 2009 with respect to the ensuing five-year
period, shall be reset every five years thereafter and shall be determined with reference to the
market value of the Commitment as then in effect. The amount of the Periodic Commitment Fee shall
be mutually agreed by Purchaser and Seller, subject to their reasonable discretion and in
consultation with the Chairman of the Federal Reserve; provided, that Purchaser may waive
the Periodic Commitment Fee for up to one year at a time, in its sole discretion, based on adverse
conditions in the United States mortgage market.

(c) At the election of Seller, the Periodic Commitment Fee may be paid in cash or by adding
the amount thereof ratably to the liquidation preference of each outstanding share of Senior
Preferred Stock so that the aggregate liquidation preference of all such outstanding shares of
Senior Preferred Stock is increased by an amount equal to the Periodic Commitment Fee. Seller
shall deliver notice of such election not later than three (3) Business Days prior to each Periodic
Fee Date. If the Periodic Commitment Fee is not paid in cash by 12:00 pm (New York time) on the
applicable Periodic Fee Date (irrespective of Seller’s election pursuant to this subsection),
Seller shall be deemed to have elected to pay the Periodic Commitment Fee by adding the amount
thereof to the liquidation preference of the Senior Preferred Stock, and the aggregate liquidation
preference of the outstanding shares of Senior Preferred Stock shall thereupon be automatically
increased, in the manner contemplated by the first sentence of this section, by an aggregate amount
equal to the Periodic Commitment Fee then due.

3.3. Increases of Senior Preferred Stock Liquidation Preference as a Result of Funding under
the Commitment. The aggregate liquidation preference of the outstanding shares of Senior
Preferred Stock shall be automatically increased by an amount equal to the amount of each draw on
the Commitment pursuant to Article 2 that is funded by Purchaser to Seller, such increase to occur
simultaneously with such funding and ratably with respect to each share of Senior Preferred Stock.

3.4. Notation of Increase in Liquidation Preference. Seller shall duly mark its records to
reflect each increase in the liquidation preference of the Senior Preferred Stock contemplated
herein (but, for the avoidance of doubt, such increase shall be effective regardless of whether
Seller has properly marked its records).

	4.	 	REPRESENTATIONS

Seller represents and warrants as of the Effective Date, and shall be deemed to have
represented and warranted as of the date of each request for and funding of an advance under the
Commitment pursuant to Article 2, as follows:

4.1. Organization and Good Standing. Seller is a corporation, chartered by the Congress of
the United States, duly organized, validly existing and in good standing under the laws of the
United States and has all corporate power and authority to carry on its business as now conducted
and as proposed to be conducted.

4.2. Organizational Documents. Seller has made available to Purchaser a complete and correct
copy of its charter and bylaws, each as amended to date (the “Organizational Documents”).
The Organizational Documents are in full force and effect. Seller is not in violation of any
provision of its Organizational Documents.

4.3. Authorization and Enforceability. All corporate or other action on the part of Seller or
Conservator necessary for the authorization, execution, delivery and performance of this Agreement
by Seller and for the authorization, issuance and delivery of the Senior Preferred Stock and the
Warrant being purchased under this Agreement, has been taken. This Agreement has been duly and
validly executed and delivered by Seller and (assuming due authorization, execution and delivery by
the Purchaser) shall constitute the valid and legally binding obligation of Seller, enforceable
against Seller in accordance with its terms, except to the extent the enforceability thereof may be
limited by bankruptcy laws, insolvency laws, reorganization laws, moratorium laws or other laws of
general applicability affecting creditors’ rights generally or by general equitable principles
(regardless of whether enforcement is sought in a proceeding in equity or at law). The Agency is
acting as conservator for Seller under Section 1367 of the FHE Act. The Board of Directors of
Seller, by valid action at a duly called meeting of the Board of Directors on September 6, 2008,
consented to the appointment of the Agency as conservator for purposes of Section 1367(a)(3)(I) of
the FHE Act, and the Director of the Agency has appointed the Agency as Conservator for Seller
pursuant to Section 1367(a)(1) of the FHE Act, and each such action has not been rescinded, revoked
or modified in any respect.

4.4. Valid Issuance. When issued in accordance with the terms of this Agreement, the Senior
Preferred Stock and the Warrant will be duly authorized, validly issued, fully paid and
nonassessable, free and clear of all liens and preemptive rights. The shares of common stock to
which the holder of the Warrant is entitled have been duly and validly reserved for issuance. When
issued and delivered in accordance with the terms of this Agreement and the Warrant, such shares
will be duly authorized, validly issued, fully paid and nonassessable, free and clear of all liens
and preemptive rights.

4.5.

1

Non-Contravention.

(a) The execution, delivery or performance by Seller of this Agreement and the consummation
by Seller of the transactions contemplated hereby do not and will not (i) conflict with or violate
any provision of the Organizational Documents of Seller; (ii) conflict with or violate any law,
decree or regulation applicable to Seller or by which any property or asset of Seller is bound or
affected, or (iii) result in any breach of, or constitute a default (with or without notice or
lapse of time, or both) under, or give to others any right of termination, amendment, acceleration
or cancellation of, or result in the creation of a lien upon any of the properties or assets of
Seller, pursuant to any note, bond, mortgage, indenture or credit agreement, or any other contract,
agreement, lease, license, permit, franchise or other instrument or obligation to which Seller is a
party or by which Seller is bound or affected, other than, in the case of clause (iii), any such
breach, default, termination, amendment, acceleration, cancellation or lien that would not have and
would not reasonably be expected to have, individually or in the aggregate, a material adverse
effect on the business, property, operations or condition of the Seller, the authority of the
Conservator or the validity or enforceability of this Agreement (a “Material Adverse
Effect”).

(b) The execution and delivery of this Agreement by Seller does not, and the consummation by
Seller of the transactions contemplated by this Agreement will not, require any consent, approval,
authorization, waiver or permit of, or filing with or notification to, any governmental authority
or any other person, except for such as have already been obtained.

	5.	 	COVENANTS

From the Effective Date until such time as the Senior Preferred Stock shall have been repaid
or redeemed in full in accordance with its terms:

5.1. Restricted Payments. Seller shall not, and shall not permit any of its subsidiaries to,
in each case without the prior written consent of Purchaser, declare or pay any dividend (preferred
or otherwise) or make any other distribution (by reduction of capital or otherwise), whether in
cash, property, securities or a combination thereof, with respect to any of Seller’s Equity
Interests (other than with respect to the Senior Preferred Stock or the Warrant) or directly or
indirectly redeem, purchase, retire or otherwise acquire for value any of Seller’s Equity Interests
(other than the Senior Preferred Stock or the Warrant), or set aside any amount for any such
purpose.

5.2. Issuance of Capital Stock. Seller shall not, and shall not permit any of its
subsidiaries to, in each case without the prior written consent of Purchaser, sell or issue Equity
Interests of Seller or any of its subsidiaries of any kind or nature, in any amount, other than the
sale and issuance of the Senior Preferred Stock and Warrant on the Effective Date and the common
stock subject to the Warrant upon exercise thereof, and other than as required by (and pursuant to)
the terms of any binding agreement as in effect on the date hereof.

5.3. Conservatorship. Seller shall not (and Conservator, by its signature below, agrees that
it shall not), without the prior written consent of Purchaser, terminate, seek termination of or
permit to be terminated the conservatorship of Seller pursuant to Section 1367 of the FHE Act,
other than in connection with a receivership pursuant to Section 1367 of the FHE Act.

5.4. Transfer of Assets. Seller shall not, and shall not permit any of its subsidiaries to,
in each case without the prior written consent of Purchaser, sell, transfer, lease or otherwise
dispose of (in one transaction or a series of related transactions) all or any portion of its
assets (including Equity Interests in other persons, including subsidiaries), whether now owned or
hereafter acquired (any such sale, transfer, lease or disposition, a “Disposition”), other
than Dispositions for fair market value:

(a) to a limited life regulated entity (“LLRE”) pursuant to Section 1367(i) of the
FHE Act;

(b) of assets and properties in the ordinary course of business, consistent with past
practice;

(c) in connection with a liquidation of Seller by a receiver appointed pursuant to Section
1367(a) of the FHE Act;

(d) of cash or cash equivalents for cash or cash equivalents; or

(e) to the extent necessary to comply with the covenant set forth in Section 5.7 below.

5.5. Indebtedness. Seller shall not, and shall not permit any of its subsidiaries to, in each
case without the prior written consent of Purchaser, incur, assume or otherwise become liable for
(a) any Indebtedness if, after giving effect to the incurrence thereof, the aggregate Indebtedness
of Seller and its subsidiaries on a consolidated basis would exceed 110.0% of the aggregate
Indebtedness of Seller and its subsidiaries on a consolidated basis as of June 30, 2008 or (b) any
Indebtedness if such Indebtedness is subordinated by its terms to any other Indebtedness of Seller
or the applicable subsidiary. For purposes of this covenant the acquisition of a subsidiary with
Indebtedness will be deemed to be the incurrence of such Indebtedness at the time of such
acquisition.

5.6. Fundamental Changes. Seller shall not, and shall not permit any of its subsidiaries to,
in each case without the prior written consent of Purchaser, (i) merge into or consolidate or
amalgamate with any other Person, or permit any other Person to merge into or consolidate or
amalgamate with it, (ii) effect a reorganization or recapitalization involving the common stock of
Seller, a reclassification of the common stock of Seller or similar corporate transaction or event
or (iii) purchase, lease or otherwise acquire (in one transaction or a series of transactions) all
or substantially all of the assets of any other Person or any division, unit or business of any
Person.

5.7. Mortgage Assets. Seller shall not own, as of any applicable date, Mortgage Assets in
excess of (i) on December 31, 2009, $850 billion, or (ii) on December 31 of each year thereafter,
90.0% of the aggregate amount of Mortgage Assets of Seller as of December 31 of the immediately
preceding calendar year; provided, that in no event shall Seller be required under this
Section 5.7 to own less than $250 billion in Mortgage Assets.

5.8. Transactions with Affiliates. Seller shall not, and shall not permit any of its
subsidiaries to, without the prior written consent of Purchaser, engage in any transaction of any
kind or nature with an Affiliate of Seller unless such transaction is (i) pursuant to this
Agreement, the Senior Preferred Stock or the Warrant, (ii) upon terms no less favorable to Seller
than would be obtained in a comparable arm’s-length transaction with a Person that is not an
Affiliate of Seller or (iii) a transaction undertaken in the ordinary course or pursuant to a
contractual obligation or customary employment arrangement in existence as of the date hereof.

5.9. Reporting. Seller shall provide to Purchaser:

(a) not later than the time period specified in the SEC’s rules and regulations with respect
to issuers as to which Section 13 and 15(d) of the Exchange Act apply, annual reports on Form 10-K
(or any successor or comparable form) containing the information required to be contained therein
(or required in such successor or comparable form);

(b) not later than the time period specified in the SEC’s rules and regulations with respect
to issuers as to which Section 13 and 15(d) of the Exchange Act apply, reports on Form 10-Q (or any
successor or comparable form) containing the information required to be contained therein (or
required in such successor or comparable form);

(c) promptly from time to time after the occurrence of an event required to be therein
reported (and in any event within the time period specified in the SEC’s rules and regulations),
such other reports on Form 8-K (or any successor or comparable form);

(d) concurrently with any delivery of financial statements under paragraphs (a) or (b) above,
a certificate of the Designated Representative, (i) certifying that Seller is (and since the last
such certificate has at all times been) in compliance with each of the covenants contained herein
and that no representation made by Seller herein or in any document delivered pursuant hereto or in
connection herewith was false or misleading in any material respect when made, or, if the foregoing
is not true, specifying the nature and extent of the breach of covenant and/or representation and
any corrective action taken or proposed to be taken with respect thereto, and (ii) setting forth
computations in reasonable detail and satisfactory to the Purchaser of the Deficiency Amount, if
any;

(e) promptly, from time to time, such other information regarding the operations, business
affairs, plans, projections and financial condition of Seller, or compliance with the terms of this
Agreement, as Purchaser may reasonably request; and

(f) as promptly as reasonably practicable, written notice of the following:

(i) the occurrence of the Liquidation End Date;

(ii) the filing or commencement of, or any written threat or notice of intention of
any Person to file or commence, any action, suit or proceeding, whether at law or in equity
or by or before any governmental authority or in arbitration, against Conservator, Seller or
any other Person which, if adversely determined, would reasonably be expected to have a
Material Adverse Effect;

(iii) any other development that is not a matter of general public knowledge and that
has had, or would reasonably be expected to have, a Material Adverse Effect.

5.10. Executive Compensation. Seller shall not, without the consent of the Director, in
consultation with the Secretary of the Treasury, enter into any new compensation arrangements with,
or increase amounts or benefits payable under existing compensation arrangements of, any Named
Executive Officer of Seller.

	6.	 	MISCELLANEOUS

6.1. No Third-Party Beneficiaries. Until the termination of the Commitment, at any time
during the existence and continuance of a payment default with respect to debt securities issued by
Seller and/or a default by Seller with respect to any Mortgage Guarantee Obligations, any holder of
such defaulted debt securities or beneficiary of such Mortgage Guarantee Obligations (collectively,
the “Holders”) may (a) deliver notice to the Seller and the Designated Representative
requesting exercise of all rights available to them under this Agreement to draw on the Commitment
up to the lesser of the amount necessary to cure the outstanding payment defaults and the Available
Amount as of the last day of the immediately preceding fiscal quarter (the “Demand
Amount”), (b) if Seller and the Designated Representative fail to act as requested within
thirty (30) days of such notice, seek judicial relief for failure of the Seller to draw on the
Commitment, and (c) if Purchaser shall fail to perform its obligations in respect of any draw on
the Commitment, and Seller and/or the Designated Representative shall not be diligently pursuing
remedies in respect of such failure, file a claim in the United States Court of Federal Claims for
relief requiring Purchaser to pay Seller the Demand Amount in the form of liquidated damages. Any
payment of liquidated damages to Seller under the previous sentence shall be treated for all
purposes, including the provisions of the Senior Preferred Stock and Section 3.3 of this Agreement,
as a draw and funding of the Commitment pursuant to Article 2. The Holders shall have no other
rights under or in respect of this Agreement, and the Commitment shall not otherwise be enforceable
by any creditor of Seller or by any other Person other than the parties hereto, and no such
creditor or other Person is intended to be, or shall be, a third party beneficiary of any provision
of this Agreement.

6.2. Non-Transferable; Successors. The Commitment is solely for the benefit of Seller and
shall not inure to the benefit of any other Person (other than the Holders to the extent set forth
in Section 6.1), including any entity to which the charter of Seller may be transferred, to any
LLRE or to any other successor to the assets, liabilities or operations of Seller. The Commitment
may not be assigned or otherwise transferred, in whole or in part, to any Person (including, for
the avoidance of doubt, any LLRE to which a receiver has assigned all or a portion of Seller’s
assets) without the prior written consent of Purchaser (which may be withheld in its sole
discretion). In no event shall any successor to Seller (including such an LLRE) be entitled to the
benefit of the Commitment without the prior written consent of Purchaser. Seller and Conservator,
for themselves and on behalf of their permitted successors, covenant and agree not to transfer or
purport to transfer the Commitment in contravention of the terms hereof, and any such attempted
transfer shall be null and void ab initio. It is the expectation of the parties that, in the event
Seller were placed into receivership and an LLRE formed to purchase certain of its assets and
assume certain of its liabilities, the Commitment would remain with Seller for the benefit of the
holders of the debt of Seller not assumed by the LLRE.

6.3. Amendments; Waivers. This Agreement may be waived or amended solely by a writing
executed by both of the parties hereto, and, with respect to amendments to or waivers of the
provisions of Sections 5.3, 6.2 and 6.11, the Conservator; provided, however, that
no such waiver or amendment shall decrease the aggregate Commitment or add conditions to funding
the amounts required to be funded by Purchaser under the Commitment if such waiver or amendment
would, in the reasonable opinion of Seller, adversely affect in any material respect the holders of
debt securities of Seller and/or the beneficiaries of Mortgage Guarantee Obligations, in each case
in their capacities as such, after taking into account any alternative arrangements that may be
implemented concurrently with such waiver or amendment. In no event shall any rights granted
hereunder prevent the parties hereto from waiving or amending in any manner whatsoever the
covenants of Seller hereunder.

6.4. Governing Law; Jurisdiction; Venue. This Agreement and the Warrant shall be governed by,
and construed in accordance with, the federal law of the United States of America if and to the
extent such federal law is applicable, and otherwise in accordance with the laws of the State of
New York. The Senior Preferred Stock shall be governed as set forth in the terms thereof. Except
as provided in section 6.1 and as otherwise required by law, the United States District Court for
the District of Columbia shall have exclusive jurisdiction over all civil actions arising out of
this Agreement, the Commitment, the Senior Preferred Stock and the Warrant, and venue for any such
civil action shall lie exclusively in the United States District Court for the District of
Columbia.

6.5. Notices. Any notices delivered pursuant to or in connection with this Agreement shall be
delivered to the applicable parties at the addresses set forth below:

If to Seller:

Federal National Mortgage Association

c/o Federal Housing Finance Authority

1700 G Street, NW

4th Floor

Washington, DC 20552

Attention: General Counsel

If to Purchaser:

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington DC 20220

Attention: Under Secretary for Domestic Finance

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with a copy to:

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington DC 20220

Attention: General Counsel

If to Conservator:

Federal Housing Finance Authority

1700 G Street, NW

4th Floor

Washington, DC 20552

Attention: General Counsel

All notices and other communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail. All notices
hereunder shall be effective upon receipt.

6.6. Disclaimer of Guarantee. This Agreement and the Commitment are not intended to and shall
not be deemed to constitute a guarantee by Purchaser or any other agency or instrumentality of the
United States of the payment or performance of any debt security or any other obligation,
indebtedness or liability of Seller of any kind or character whatsoever.

6.7. Effect of Order; Injunction; Decree. If any order, injunction or decree is issued by any
court of competent jurisdiction that vacates, modifies, amends, conditions, enjoins, stays or
otherwise affects the appointment of Conservator as conservator of Seller or otherwise curtails
Conservator’s powers as such conservator (except in each case any order converting the
conservatorship to a receivership under Section 1367(a) of the FHE Act), Purchaser may by written
notice to Conservator and Seller declare this Agreement null and void, whereupon all transfers
hereunder (including the issuance of the Senior Preferred Stock and the Warrant and any funding of
the Commitment) shall be rescinded and unwound and all obligations of the parties (other than to
effectuate such rescission and unwind) shall immediately and automatically terminate.

6.8. Business Day. To the extent that any deadline or date of performance of any right or
obligation set forth herein shall fall on a day other than a Business Day, then such deadline or
date of performance shall automatically be extended to the next succeeding Business Day.

6.9. Entire Agreement. This Agreement, together with the Senior Preferred Stock and Warrant,
contains the entire agreement between the parties hereto with respect to the transactions
contemplated hereby and supersedes and cancels all prior agreements, including, but not limited to,
all proposals, term sheets, statements, letters of intent or representations, written or oral, with
respect thereto.

6.10. Remedies. In the event of a breach by Seller of any covenant or representation of
Seller set forth herein, Purchaser shall be entitled to specific performance (in the case of a
breach of covenant), damages and such other remedies as may be available at law or in equity;
provided, that Purchaser shall not have the right to terminate the Commitment solely as a
result of any such breach, and compliance with the covenants and the accuracy of the
representations set forth in this Agreement shall not be conditions to funding the Commitment.

6.11. Tax Reporting. Neither Seller nor Conservator shall take, or shall permit any of their
respective successors or assigns to take, a position for any tax, accounting or other purpose that
is inconsistent with Internal Revenue Service Notice 2008-76 (or the regulations to be issued
pursuant to such Notice) regarding the application of Section 382 of the Internal Revenue Code of
1986, as amended, a copy of which Notice has been provided to Seller in connection with the
execution of this Agreement.

6.12. Non-Severability. Each of the provisions of this Agreement is integrated with and
integral to the whole and shall not be severable from the remainder of the Agreement. In the event
that any provision of this Agreement, the Senior Preferred Stock or the Warrant is determined to be
illegal or unenforceable, then Purchaser may, in its sole discretion, by written notice to
Conservator and Seller, declare this Agreement null and void, whereupon all transfers hereunder
(including the issuance of the Senior Preferred Stock and the Warrant and any funding of the
Commitment) shall be rescinded and unwound and all obligations of the parties (other than to
effectuate such rescission and unwind) shall immediately and automatically terminate.

[Signature Page Follows]

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FEDERAL NATIONAL MORTGAGE ASSOCIATION, by

Federal Housing Finance Agency,

its Conservator

/s/ James B. Lockhart III 

James B. Lockhart III

UNITED STATES DEPARTMENT OF THE TREASURY

/s/ Henry M. Paulson, Jr. 

Henry M. Paulson, Jr.

Acknowledged and, solely as

To Sections 5.3, 6.2 and 6.11,

Agreed:

FEDERAL HOUSING

FINANCE AGENCY,

As Conservator

/s/ James B. Lockhart III     

James B. Lockhart III

Director

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