Amendment to Employment Agreement between Fannie Mae and J. Timothy Howard (September 2004)
This letter agreement amends the employment contract between Fannie Mae and J. Timothy Howard, Vice Chairman and CFO. The amendments clarify the definition and procedures for termination "for cause," specifying actions that constitute cause and the process for termination, including notice and opportunity to respond. It also details that, if terminated for cause, Mr. Howard will only receive accrued salary and vested benefits up to the termination date, with no further obligations from Fannie Mae. The amendment is effective upon Mr. Howard's acceptance and signature.
Exhibit 10.3
September 17, 2004
Mr. J. Timothy Howard
Vice Chairman and Chief Financial Officer
Fannie Mae
3900 Wisconsin Avenue, NW
Washington, DC 20016
Dear Tim:
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:
J. Timothy Howard
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/ J. Timothy Howard | September 20, 2004 | ||
J. Timothy Howard | Date |