Document:

exv10w16

 

EXHIBIT 10.16

2003 SUPPLEMENTAL PENSION PLAN

     On January 21, 2003 the Fannie Mae Board of Directors authorized the
creation of the 2003 Supplemental Pension Plan (the “Plan”).
The Plan will be a supplement to the current Fannie Mae Pension Plan, and will
include in the pension calculation of any officer of the corporation (persons
at the level of Vice President and higher), amounts received as a bonus for
officer service, limited to 50% of base salary. The Plan is to be effective as
of January 1, 2003.

     Fannie Mae currently is in the process of drafting the Plan.exv10w17

 

EXHIBIT 10.17

FANNIE MAE

DIRECTOR’S CHARITABLE AWARD PROGRAM

	1.	 	PURPOSE OF THE PROGRAM
	 
	 	 	The Fannie Mae Director’s Charitable Award Program (the “Program”) allows
each eligible Director of Fannie Mae (the “Company”) to recommend that
the Company make a donation of up to $1,000,000 to the eligible
tax-exempt organization(s) (the “Donee(s)”) selected by the Director,
with the donation to be made, in the Director’s name, in ten equal annual
installments, with the first installment to be made as soon as is
practicable after the Director’s death. The purpose of the Program is to
acknowledge the service of the Company’s Directors, recognize the
interest of the Company and its Directors in supporting worthy
institutions, and enhance the Company’s Director benefit program so that
the Company is able to continue to attract and retain Directors of the
highest caliber.
	 
	2.	 	ELIGIBILITY
	 
	 	 	All persons serving as Directors of Fannie Mae as of January 1, 1993,
shall be eligible to participate in the Program. All Directors who join
the Company’s Board of Directors after that date shall be immediately
eligible to participate in the Program upon election or appointment to
the Board.
	 
	3.	 	RECOMMENDATION OF DONATION
	 
	 	 	When a Director becomes eligible to participate in the Program, he or she
shall make a written recommendation to the Company, on a form approved by
the Company for this purpose, designating the Donee(s) which he or she
intends to be the recipient(s) of the Company donation to be made on his
or her behalf. A Director may revise or revoke any such recommendation
prior to his or her death by signing a new recommendation form and
submitting it to the Company.
	 
	 	 	Rev. December 1997

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	4.	 	AMOUNT AND TIMING OF DONATION
	 
	 	 	Each eligible Director may choose one organization to receive a Company
donation of $1,000,000, or up to five organizations to receive donations
aggregating $1,000,000. Each recommended organization must be
recommended to receive a donation of at least $100,000. The donation
will be made by Fannie Mae in ten equal annual installments, with the
first installment to be made as soon as is practicable after the
Director’s death. If a Director recommends more than one organization to
receive a donation, generally each will receive a prorated portion of
each annual installment. Each annual installment payment will be divided
among the recommended organizations in the same proportions as the total
donation amount has been allocated among the organizations by the
Director. However, a Director may instruct the Company to allocate the
installment payments in a different manner.
	 
	5.	 	DONEES AND RESTRICTIONS ON USE OF FUNDS
	 
	 	 	In order to be eligible to receive a donation, a recommended organization
must be an educational institution or charitable organization, and must
initially, and at the time a donation is to be made, qualify to receive
tax-deductible donations under the Internal Revenue Code. Also, the
organization must be reviewed and approved by The Ayco Company, L. P. An
organization will be approved by Ayco unless it determines, in the
exercise of its good faith judgment and in consultation with Fannie Mae’s
Director of Employee Benefits, that a donation to the organization would
be detrimental to the best interests of the Company. Private foundations
are not eligible to receive donations under the Program.
	 
	 	 	A Director may impose restrictions on the manner in which a recommended
organization may use the funds it receives as the result of a Program
donation made on the Director’s behalf. Any such restrictions must be
reviewed and approved by Ayco; the restrictions will be approved by Ayco
unless it determines, in the exercise of its good faith judgment and in
consultation with Fannie Mae’s Director of Employee Benefits, that the
restrictions imposed would be detrimental to the best interests of Fannie
Mae.

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	 	 	After a donation is made to a Donee, neither the Company nor Ayco shall
be responsible for monitoring the use of the funds by the Donee to
determine whether the Donee is complying with any restrictions imposed by
the Director on the donation. However, if Ayco becomes aware that a
Donee is not complying with the restrictions imposed by a Director, it
may, in consultation with the Director of Employee Benefits of Fannie
Mae, suspend any further donations to the Donee until the restrictions
are complied with, or it may decide that no further donations will be
made to the Donee, as it deems appropriate.
	 
	 	 	If a recommended organization becomes ineligible to receive a donation
under the Program, and the Director does not complete a new Beneficiary
Recommendation Form before his or her death, or if Ayco determines that
no further donations will be made to a Donee because of the Donee’s
failure to comply with restrictions imposed by the Director on the
donation, the amount recommended to be donated to the Donee (or the
remaining amount, if a portion of the donation has been paid to the
Donee) shall be donated to the Director’s other Donee(s) on a prorata
basis. The amount in question shall be prorated among the remaining
eligible Donees based on the recommended donation amounts for each such
Donee. If there are no remaining eligible Donees, the amount in question
shall be donated to the eligible Donee(s) selected by the Committee.
	 
	6.	 	VESTING
	 
	 	 	A Director will become vested in the Program donation at the rate of
$100,000 for each twelve full months of Board service. Therefore, a
Director will be vested in the entire $1,000,000 donation amount when he
or she completes ten years of Board service. However, a Director will
become fully vested in the Program if termination of Board service is due
to death, disability or other circumstances deemed appropriate by the
Compensation Committee of the Board of Directors of the Company (the
“Committee”). Also, for Directors serving on January 1, 1993, Board
service prior to adoption of the Program will be counted as vesting
service. Even though a Director is partially or fully vested under the
Program, the amendment, suspension or termination of the Program by the
Board of Directors may operate to reduce or cancel all future
contributions under the Program.

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	7.	 	FUNDING AND PROGRAM ASSETS
	 
	 	 	Fannie Mae may fund the Program or it may choose not to fund the Program.
If the Company elects to fund the Program in any manner, neither the
Directors nor their recommended Donee(s) shall have any rights or
interests in any assets of the Company identified for such purpose.
Nothing contained in the Program shall create, or be deemed to create, a
trust, actual or constructive, for the benefit of a Director or any Donee
recommended by a Director to receive a donation, or shall give, or be
deemed to give, any Director or recommended Donee any interest in any
assets of the Program or the Company. If the Company elects to fund the
Program through life insurance policies, a participating Director agrees
to cooperate and fulfill the enrollment requirements necessary to obtain
insurance on his or her life.
	 
	8.	 	CLAIMS
	 
	 	 	All disputed claims for benefits under the Program shall be submitted to,
and within a reasonable period of time decided by, the Committee or a
person or persons designated by the Committee. Written notice of the
decision on each such claim shall be furnished reasonably promptly to the
claimant. If the claim is wholly or partially denied, such written
notice shall set forth an explanation of the specific findings and
conclusions on which such denial is based. A claimant may review all
pertinent documents and may request a review by the Committee of such a
decision denying the claim. Such a request shall be made in writing and
filed with the Committee within a reasonable period of time, as specified
by said Committee in writing from time to time, after delivery to said
claimant of written notice of said decision. Such written request for
review shall contain all additional information which the claimant wishes
the Committee to consider. The Committee may hold any hearing or conduct
any independent investigation which it deems necessary to render its
decision, and the decision on review shall be made as soon as possible
after said Committee’s receipt of the request for review. Written notice
of the decision on review shall be promptly furnished to the claimant and
shall include specific reasons for such decision. This administrative
procedure is the sole remedy available for disputes concerning the
Program. Directors and claimants have no right to arbitration or court
action for disputes arising under the Program. For all purposes under
the Program,

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	 	 	such decisions on claims (where no review is requested) and decisions on
review (where review is requested) shall be final, binding, and
conclusive on all parties.
	 
	9.	 	AMENDMENT OR TERMINATION
	 
	 	 	The Board of Directors of the Company may, at any time, without the
consent of the Directors participating in the Program, amend, suspend, or
terminate the Program, and delegates to the Committee the authority to
adopt amendments that may be necessary or appropriate to facilitate the
administration, management and interpretation of the Program or to
conform the Program thereto, or that may be necessary or appropriate to
qualify or maintain the Program as a Program meeting the requirements of
any applicable section of law, provided any such amendment does not
significantly affect the cost to the Company of maintaining the Program.
	 
	10.	 	ADMINISTRATION
	 
	 	 	The Program shall be administered by the Committee. A majority of the
members of the Committee shall constitute a quorum. The Committee may
act at a meeting by action of a majority of the members present, or
without a meeting by unanimous written consent. The Committee shall have
plenary authority in its discretion, but subject to the provisions of the
Program, to prescribe, amend, and rescind from time to time any
guidelines deemed necessary or appropriate for the administration or
interpretation of the Program, and to interpret the Program, and make all
determinations and take all other actions considered necessary or
advisable for the administration of the Program. All decisions, actions
or interpretations of the Committee shall be final, conclusive and
binding upon all parties. The Committee may delegate to any agent or
individual or to any subcommittee or member of the Committee its
authority to perform any act hereunder, including without limitation
those matters involving the exercise of discretion, provided that such
delegation shall be subject to revocation at any time at the discretion
of said Committee.

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	11.	 	GOVERNING LAW
	 
	 	 	The Program shall be construed and enforced according to the laws of the
District of Columbia, and all provisions thereof shall be administered
according to the laws of said District.
	 
	12.	 	EFFECTIVE DATE
	 
	 	 	The effective date of the Program is January 1, 1993. The recommendation
of an individual Director will be effective when he or she completes all
enrollment requirements.

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