CANCELLATION AGREEMENT

Exhibit 10

CANCELLATION AGREEMENT

THIS CANCELLATION AGREEMENT (the “Agreement”), effective as of December 21, 2005, is by and between Wells Fargo & Company, a Delaware corporation (the “Corporation”), and Richard M. Kovacevich (the “Executive”).

The Corporation and the Executive are parties to a Severance Agreement, dated March 11, 1991, amended effective as of January 1, 1995 (collectively, the “Severance Agreement”), which provides that the Corporation will make certain payments to the Executive if his employment with the Corporation is terminated or if his job duties or compensation and benefits are substantially reduced within three years following a change of control of the Corporation (as defined in the Severance Agreement). The Severance Agreement is currently scheduled to automatically renew for an additional three-year period on March 11, 2006, unless, among other events, the Corporation notifies the Executive, at least 60 day