FNMFO does have an adjustment feature as well for the comm. conversion at holders option...
f) The Conversion Price shall be adjusted from time to time as follows:
(i) If Fannie Mae shall after the date on which the shares of Series 2004-1 Preferred Stock are first issued (the “Issue Date”) (A) pay a dividend or make a distribution to all holders of its common stock in shares of common stock of Fannie Mae, (B) subdivide its outstanding common stock into a greater number of shares, (C) combine its outstanding common stock into a smaller number of shares or (D) issue any shares by reclassification of its common stock, the Conversion Price in effect at the opening of business on the day following the date fixed for the determination of stockholders entitled to receive such dividend or distribution or at the opening of business on the day following the day on which such subdivision, combination or reclassification becomes effective, as the case may be, shall be adjusted so that the Holder of any share of Series 2004-1 Preferred Stock thereafter surrendered for conversion shall be entitled to receive the number of shares of common stock of Fannie Mae that such Holder would have owned or have been entitled to receive after the happening of any of the events described above had such share been converted immediately prior to the record date in the case of a dividend or distribution or the effective date in the case of a subdivision, combination or reclassification. An adjustment made pursuant to this clause (i) shall become effective immediately after the opening of business on the day next following the record date (except as provided in subsection (j) below) in the case of a dividend or distribution and shall become effective immediately after the opening of business on the day next following the effective date in the case of a subdivision, combination or reclassification. If any dividend or distribution of the type described in paragraph (A) above is declared but not so paid or made, the Conversion Price shall again be adjusted to the Conversion Price which would then be in effect if such dividend or distribution had not been declared.
