Amendment to Employment Agreement between Fannie Mae and Daniel H. Mudd (September 2004)
This amendment updates the employment agreement between Fannie Mae and Daniel H. Mudd, Vice Chairman and COO. It clarifies the conditions under which Mr. Mudd's employment may be terminated for cause, specifying actions such as dishonesty, willful misconduct, gross negligence, or felony conviction. The amendment also details the process and rights for termination, and limits post-termination compensation to accrued salary and vested benefits if terminated for cause. The changes take effect upon mutual agreement and signature by both parties.
Exhibit 10.2
September 17, 2004
Mr. Daniel H. Mudd
Vice Chairman and Chief Operating Officer
Fannie Mae
3900 Wisconsin Avenue, NW
Washington, DC 20016
Dear Dan:
The Fannie Mae Board of Directors proposes that the following amendments be made to your Employment Agreement, executed by Fannie Mae in April 2004 and previously amended on June 30, 2004:
Amend Section 4.1(b) to read as follows:
Daniel H. Mudd
September 17, 2004
Page 2 of 2
action or omission was in the best interests of the Corporation.
Amend Section 5.2 to read as follows:
If you agree to the foregoing, please so indicate by signing the enclosed copy of this letter in the space indicated below and returning a fully executed copy of the letter to my attention, whereupon your Employment Agreement will be amended.
Sincerely, |
/s/ Anne Mulcahy |
Anne Mulcahy |
Chairman, Compensation Committee |
AGREED TO AND ACCEPTED:
/s/ Daniel H. Mudd | September 18, 2004 | ||
Daniel H. Mudd | Date |