Document:

RESTRICTED STOCK AGREEMENT

Exhibit 10.3

 

TIME-BASED RESTRICTED STOCK AGREEMENT

 

 

This
AGREEMENT (the “Agreement”) made as of __________________ (the “Date of Grant”)
by and between MACY’S, INC., a Delaware corporation (the “Company”), and ______________
(the “Grantee”).

 

            1.         Grant of Restricted Stock.  Subject
to and upon the terms, conditions, and restrictions set forth in this Agreement
and in the Company’s 2009 Omnibus Incentive Compensation Plan (the “Plan”), as
amended from time to time, the Company hereby grants to the Grantee as of the
Date of Grant _______________ shares of common stock of the Company (“Restricted
Stock”).  The Restricted Stock shall be fully paid and nonassessable.

 

            2.         Limitations on Transfer of Restricted
Stock.  

 

(a) 
The shares of Restricted Stock may not be transferred, sold, pledged,
exchanged, assigned or otherwise encumbered or disposed of by the Grantee,
except to the Company, until they vest (i.e., become nonforfeitable) in
accordance with Section 3; provided, however, that the Grantee’s interest in
the Restricted Stock may be transferred at any time by will or the laws of
descent and distribution;

 

(b) 
Notwithstanding Section 4(a), the shares of Restricted Stock or any interest
therein may be transferred by the Grantee, without payment of consideration
therefor by the transferee, to any one or more members of the immediate family
of the Grantee (as defined in Rule 16a-1(e) under the Securities Exchange Act
of 1934), or to one or more trusts established solely for the benefit of one or
more members of the immediate family of the Grantee or to one or more
partnerships in which the only partners are such members of the immediate
family of the Grantee.  No transfer under this Section 2(b) will be effective
until notice of such transfer is delivered to the Company describing the terms
and conditions of the proposed transfer, and the Company determines that the
proposed transfer complies with the terms of the Plan and this Agreement and
with any terms and conditions made applicable to the transfer by the Company or
Board at the time of the proposed transfer. Any transferee under this Section
2(b) shall be subject to the same terms and conditions hereunder as would apply
to the Grantee and to such other terms and conditions made applicable to the
transferee pursuant to this Agreement or by the Board or the Company. Any
purported transfer that does not comply with the requirements of this Section
2(b) shall be void and unenforceable against the Company, and the purported
transferee shall not obtain any rights to or interest in the Restricted Stock.

 

(c) 
Notwithstanding anything to the contrary contained in any Restricted Stock
Agreement previously entered into between the Company and the Grantee covering
the grant of Restricted Stock by the Company to the Grantee, all such Restricted
Stock previously granted to Grantee by the Company shall be transferable
consistent with the terms and conditions applicable to the transfer of the
shares of Restricted Stock as contained herein.

 

            3.         Vesting
of Restricted Stock.  

 

(a) 
Subject to Section 4 below, if the Grantee remains continuously employed by the
Company, the shares of Restricted Stock shall vest on the dates set forth below
(the “Vesting Date”):

 

                                                     Number
of Shares that Vest

Vesting
Date                                 on
such Vesting Date         

 

 

 

 

 

For
the purposes of this Agreement the continuous employment of the Grantee with
the Company shall not be deemed to have been interrupted, and the Grantee shall
not be deemed to have ceased to be an employee of the Company, by reason of the
transfer of the Grantee’s employment among the Company and its Subsidiaries,
divisions or affiliates or a leave of absence approved by the Company.  

 

(b) 
Notwithstanding the provisions of Section 3(a), 

 

(i) all of the unvested shares of Restricted Stock
shall immediately vest in the event of the Grantee’s death or permanent and
total disability while in the employ of the Company; and

 

(ii) all of the unvested shares of Restricted Stock
shall immediately vest if, within the twenty-four (24) month period following a
Change in Control (as hereafter defined) of the Company, the Grantee’s
employment is terminated by the Company without cause (as hereafter defined) or
if the Grantee voluntarily terminates employment with Good Reason (as hereafter
defined).

 

            4.         Forfeiture of Restricted Stock.  Subject
to Section 3(b), and except as the Board may determine on a case-by-case basis,
all shares of Restricted Stock that have not yet vested shall be forfeited if
the Grantee ceases to be continuously employed by the Company at any time prior
to the applicable Vesting Date.  In the event of a forfeiture, the
certificate(s) representing the shares of Restricted Stock shall be canceled if
the Restricted Stock was issued to Grantee in certificated form, or the shares
of Restricted Stock shall be deducted from the Grantee’s account if the
Restricted Stock was issued in book entry or electronic form.  In the event of
a termination for cause (as hereafter defined), all unvested shares of
Restricted Stock shall be immediately forfeited.  

 

            5.         Dividend, Voting and Other Rights. 
Except as otherwise provided herein, the Grantee shall have all of the rights
of a stockholder with respect to the shares of Restricted Stock, including the
right to vote such shares and receive any dividends that may be paid thereon; provided,
however, that any additional Common Shares or other securities that the
Grantee may become entitled to receive pursuant to a stock dividend, stock
split, combination of shares, recapitalization, merger, consolidation,
separation or reorganization or any other change in the capital structure of
the Company shall be subject to the same restrictions as the shares of
Restricted Stock.

 

            6.         Retention and Issuance of Stock by the
Company.  

 

(a) 
The Restricted Stock shall be issued in book entry form, but may, at the
direction of the Compensation and Management Development Committee of the Board
of Directors (the “Compensation Committee”), be issued in other electronic form
or in certificated form. Shares of Restricted Stock issued in certificated form
shall be registered in the name of the Grantee and shall bear a legend
referring to the restrictions set forth in this Agreement.  Such certificates shall
be held in custody by the Treasurer of the Company, together with a stock power
endorsed in blank by the Grantee with respect thereto, until those shares have vested
in accordance with Section 3.  In order for the Grant under this Agreement to
be effective, the Grantee must sign and return the attached stock powers to the
attention of the Company Controller at 7 West Seventh Street, Cincinnati, Ohio 45202.

 

(b) 
Upon the vesting of the Restricted Stock, the Company shall cause Common Shares
without the restrictions referred to in Section 2 (“unrestricted Common
Shares”) to be issued to the Grantee.  Such unrestricted Common Shares shall be
credited as book entry shares to the Grantee’s trading account, unless the
Grantee requests stock certificates, in which case the Company shall deliver to
the Grantee stock certificates representing such unrestricted Common Shares.

 

            7.         No Employment Contract.  Nothing
contained in this Agreement shall confer upon the Grantee any right with
respect to continuance of employment by the Company, or limit or affect in any
manner the right of the Company to terminate the employment or adjust the
compensation of the Grantee.

 

            8.         Taxes and Withholding.  If the
Company shall be required to withhold any federal, state, local or foreign tax
in connection with the issuance or vesting of any Restricted Stock or unrestricted
Common Shares or other securities pursuant to this Agreement, it shall be a
condition to such vesting or issuance that the Grantee pay the tax or make
provisions that are satisfactory to the Company for the payment thereof. 
Unless the Grantee makes alternative arrangements satisfactory to the Company
prior to the issuance or vesting of the Restricted Stock, as the case may be,
the Grantee will satisfy such withholding obligations by surrendering to the
Company a portion of the unrestricted Common Shares that are issued or
transferred to the Grantee hereunder as of the Vesting Date, and the unrestricted
Common Shares so surrendered by the Grantee shall be credited against any such
withholding obligation at the Market Value per Share of such shares on the Vesting
Date.

 

            9.         Compliance with Law.  The Company
shall make reasonable efforts to comply with all applicable federal and state
securities laws; provided, however, notwithstanding any other provision of this
Agreement, the Company shall not be obligated to issue any Restricted Stock or unrestricted
Common Shares or other securities pursuant to this Agreement if the issuance
thereof would result in a violation of any such law.

 

            10.        Relation to Other Benefits.  Any
economic or other benefit to the Grantee under this Agreement shall not be
taken into account in determining any benefits to which the Grantee may be
entitled under any profit-sharing, retirement or other benefit or compensation
plan maintained by the Company and shall not affect the amount of any life
insurance coverage available to any beneficiary under any life insurance plan
covering employees of the Company.  

 

            11.        Amendments.  Any Amendment to the
Plan shall be deemed to be an amendment to this Agreement to the extent that
the amendment is applicable hereto; provided, however, that no amendment shall
adversely affect the rights of the Grantee under this Agreement without the
Grantee’s consent.

 

            12.        Severability.  In the event that one
or more of the provisions of this Agreement shall be invalidated for any reason
by a court of competent jurisdiction, any provision so invalidated shall be
deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.

 

            13.        Relation to Plan; Miscellaneous. 
This Agreement is subject to the terms and conditions of the Plan.  In the
event of any inconsistent provisions between this Agreement and the Plan, the
Plan shall govern.  Capitalized terms used herein without definition shall have
the meanings assigned to them in the Plan.  All references in this Agreement to
the Company shall be deemed to include, unless the context in which it is used
suggests otherwise, its subsidiaries, divisions and affiliates.

 

            14.        Successors and Assigns.  Subject to
Section 2 hereof, the provisions of this Agreement shall inure to the benefit
of, and be binding upon, the successors, administrators, heirs, legal
representatives and assigns of the Grantee including any transferee pursuant to
Section 2(b), and the successors and assigns of the Company; provided, however,
that a transferee pursuant to Section 2(b) shall not transfer shares of
Restricted Stock other than by will or by the laws of descent and distribution
unless the Company consents in writing to such transfer.

 

            15.        Governing Law.  The interpretation,
performance, and enforcement of this Agreement shall be governed by the laws of
the State of Delaware.

 

            16.        Definitions.

 

(a) 
“cause” shall mean that the Grantee has committed prior to termination of
employment any of the following acts:

 

(i)  an intentional act of fraud, embezzlement, theft,
or any other material violation of law in connection with the Grantee’s duties
or in the course of the Grantee’s employment;

 

(ii)  intentional wrongful damage to material assets
of the Company;

 

(iii)  intentional wrongful disclosure of material
confidential information of the Company;

 

(iv)  intentional wrongful engagement in any
competitive activity that would constitute a material breach of the duty of
loyalty; 

 

(v)  intentional breach of any stated material
employment policy of the Company; or

 

(vi)  intentional neglect by the Grantee of the
Grantee’s duties and responsibilities.

 

(b) 
“Good Reason” shall mean:

 

(i)  a material diminution in the Grantee’s base
compensation;

 

(ii)  a material diminution in the Grantee’s
authority, duties or responsibilities;

 

(iii)  a material change in the geographic location at
which the Grantee must perform the Grantee’s services; or

 

(iv)  any other action or inaction that constitutes a
material breach by the Company of an agreement under which the Grantee provides
services.

 

(c) 
“Change in Control” shall mean the occurrence of any of the following events:

 

(i)  The acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 30% or more of the combined voting power of the
then-outstanding securities of the Company entitled to vote generally in the
election of directors (the “Voting Stock”); provided, however, that for
purposes of this subsection (i), the following acquisitions will not constitute
a Change of Control:  (A) any acquisition of Voting Stock directly from the
Company that is approved by a majority of the Incumbent Board (as defined in
subsection (ii) below); (B) any acquisition of Voting Stock by any entity in
which the Company, directly or indirectly, beneficially owns 50% or more
ownership or other equity interest (a “Subsidiary”); (C) any acquisition of
Voting Stock by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Subsidiary; or (D) any acquisition of Voting
Stock by any Person pursuant to a transaction that complies with clauses (A),
(B) and (C) of subsection (iii) below; provided further, that:  (X) if any
Person is or becomes the beneficial owner of 30% or more of the Voting Stock as
a result of a transaction described in clause (A) of this subsection (i), and
such Person thereafter becomes the beneficial owner of any additional shares of
Voting Stock, and after obtaining such additional beneficial ownership
beneficially owns 30% or more of the Voting Stock, other than in an acquisition
of Voting Stock directly from the Company that is approved by a majority of the
Incumbent Board or other than as a result of a stock dividend, stock split or
similar transaction effected by the Company in which all holders of Voting
Stock are treated equally, such subsequent acquisition will be treated as a
Change in Control; and (Y) a Change in Control will not be deemed to have
occurred if a Person is or becomes the beneficial owner of 30% or more of the
Voting Stock as a result of a reduction in the number of shares of Voting Stock
outstanding pursuant to a transaction or series of transactions approved by a
majority of the Incumbent Board unless and until such Person thereafter becomes
the beneficial owner of any additional shares of Voting Stock, and after
obtaining such additional beneficial ownership beneficially owns 30% or more of
the Voting Stock, other than as a result of a stock dividend, stock split or
similar transaction effected by the Company in which all holders of Voting
Stock are treated equally; or 

 

(ii)  Individuals who, on the effective date of the
Plan, constitute the Board of Directors of the Company (as modified by this
subsection (ii), the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board of Directors of the Company (the “Board”); provided,
however, that any individual becoming a director after the effective
date of the Plan whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two-thirds of the directors
then comprising the Incumbent Board (either by a specific vote or by approval
of the proxy statement of the Company in which such person is named as a
nominee for director, without objection to such nomination) shall be considered
as though such individual were a member of the Incumbent Board such effective
date, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest
with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board; or

 

(iii)  The consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company (each, a “Business Combination”), unless, in each case,
immediately following such Business Combination, (A) all or substantially all
of the individuals and entities who were the beneficial owners, respectively,
of the Voting Stock immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of, respectively, the
then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity that as a result of such
transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions relative to each other as their ownership, immediately
prior to such Business Combination, of the Voting Stock, (B) no Person
(excluding any employee benefit plan (or related trust) sponsored or maintained
by the Company or any Subsidiary or such entity resulting from such Business
Combination) beneficially owns, directly or indirectly, 30% or more of, respectively,
the combined voting power of the then-outstanding securities entitled to vote
generally in the election of directors of the entity resulting from such
Business Combination except to the extent that such ownership existed prior to
the Business Combination, and (C) at least a majority of the members of the
board of directors of the corporation resulting from such Business Combination
were members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business
Combination; or

 

(iv)  Approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company.

 

            IN WITNESS
WHEREOF, the Company has caused this Agreement to be executed on its behalf by
its duly authorized officer, and Grantee has also executed this Agreement in
duplicate, as of the day and year first above written.

 

 

 

MACY’S,
INC.

 

 

By:
___________________________________

                                                                             
Dennis J. Broderick

Title: Executive Vice President, General Counsel and
Secretary

 

 

 

______________________________________

______________________,
GranteeRESTRICTED STOCK AGREEMENT

Exhibit 10.4

 

TIME-BASED RESTRICTED STOCK UNIT AGREEMENT

 

 

This
AGREEMENT (the “Agreement”) made as of _____________ (the “Date of Grant”) by
and between MACY’S, INC., a Delaware corporation (the “Company”), and ___________
(the “Grantee”).

 

            1.         Grant of Restricted Stock Units. 
Subject to and upon the terms, conditions, and restrictions set forth in this
Agreement and in the Company’s 2009 Omnibus Incentive Compensation Plan (the
“Plan”), as amended from time to time, the Company hereby grants to the Grantee
as of the Date of Grant ___________ Restricted Stock Units.  Each Restricted
Stock Unit represents the right to receive one share of the common stock of the
Company (“Common Stock”), subject to the terms and conditions set forth below.

 

            2.         Limitations on Transfer of Restricted
Stock Units.  

 

(a) 
The Restricted Stock Units may not be transferred, sold, pledged, exchanged,
assigned or otherwise encumbered or disposed of by the Grantee, except to the
Company, until they vest (i.e., become nonforfeitable) in accordance with
Section 3; provided, however, that the Grantee’s interest in the Restricted
Stock Units may be transferred at any time by will or the laws of descent and
distribution;

 

(b) 
Notwithstanding Section 4(a), the Restricted Stock Units or any interest therein
may be transferred by the Grantee, without payment of consideration therefor by
the transferee, to any one or more members of the immediate family of the
Grantee (as defined in Rule 16a-1(e) under the Securities Exchange Act of
1934), or to one or more trusts established solely for the benefit of one or
more members of the immediate family of the Grantee or to one or more
partnerships in which the only partners are such members of the immediate
family of the Grantee.  No transfer under this Section 2(b) will be effective
until notice of such transfer is delivered to the Company describing the terms
and conditions of the proposed transfer, and the Company determines that the
proposed transfer complies with the terms of the Plan and this Agreement and with
any terms and conditions made applicable to the transfer by the Company or
Board at the time of the proposed transfer. Any transferee under this Section
2(b) shall be subject to the same terms and conditions hereunder as would apply
to the Grantee and to such other terms and conditions made applicable to the
transferee pursuant to this Agreement or by the Board or the Company. Any
purported transfer that does not comply with the requirements of this Section
2(b) shall be void and unenforceable against the Company, and the purported
transferee shall not obtain any rights to or interest in the Restricted Stock
Units.

 

(c) 
Notwithstanding anything to the contrary contained in any Restricted Stock Unit
Agreement previously entered into between the Company and the Grantee covering
the grant of Restricted Stock Units by the Company to the Grantee, all such Restricted
Stock Units previously granted to Grantee by the Company shall be transferable
consistent with the terms and conditions applicable to the transfer of the
shares of Restricted Stock Units as contained herein.

 

            3.         Vesting
of Restricted Stock Units.  

 

(a) 
If the Grantee remains continuously employed by the Company, the Grantee shall
become vested in the Restricted Stock Units on the vesting date(s) set forth
below (the “Vesting Date”):

 

                                                     Number
of Units that Vest

Vesting
Date                                 on
such Vesting Date         

 

 

 

 

 

 

 

For
the purposes of this Agreement the continuous employment of the Grantee with
the Company shall not be deemed to have been interrupted, and the Grantee shall
not be deemed to have ceased to be an employee of the Company, by reason of the
transfer of the Grantee’s employment among the Company and its Subsidiaries,
divisions or affiliates or a leave of absence approved by the Company.  

 

(b) 
Notwithstanding the provisions of Section 3(a), 

 

(i) all unvested Restricted Stock Units shall
immediately vest in the event of the Grantee’s death or permanent and total
disability while in the employ of the Company; and

 

(ii) all unvested Restricted Stock Units shall
immediately vest if, within the twenty-four (24) month period following a
Change in Control (as hereafter defined), the Grantee’s employment is
terminated by the Company without cause (as hereafter defined) or if the
Grantee voluntarily terminates employment with Good Reason (as hereafter
defined).

 

            4.         Forfeiture of Restricted Stock Units.  Subject
to Section 3(b), and except as the Board may determine on a case-by-case basis,
all unvested Restricted Stock Units shall be forfeited if the Grantee ceases to
be continuously employed by the Company at any time prior to the applicable Vesting
Date.  In the event of a termination for cause (as hereafter defined), all unvested
Restricted Stock Units shall be immediately forfeited.  

 

            5.         Dividend, Voting and Other Rights. 
Except as otherwise provided herein, the Grantee shall have none of the rights
of a stockholder, including the right to vote any or all of the Restricted
Stock Units, prior to the vesting of the Restricted Stock Units as set forth in
Section 3 above. An amount representing dividends payable on shares of Common
Stock equal in number to the Restricted Stock Units held by the Grantee on a
dividend record date shall be deemed reinvested in Common Stock and credited as
additional Restricted Stock Units as of the dividend payment date. If there is
any change in the outstanding Common Stock of the Company by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger,
consolidation, separation or reorganization or any other change in the capital
structure of the Company, the Compensation Committee shall determine the
appropriate adjustment to the Restricted Stock Units, if any, needed to reflect
such change. Any additional Restricted Stock Units credited to the Grantee
pursuant to this Section 5 will be subject to the terms and restrictions set
forth in this Agreement.

 

            6.         Settlement of Restricted Stock Units. 
Promptly on or after the Vesting Date, and upon the satisfaction of any
withholding tax liability pursuant to Section 8 hereof, the Company shall issue
to the Grantee a number of shares of unrestricted Common Stock equal to the
number of Restricted Stock Units that vested on that Vesting Date and the
additional Restricted Stock Units representing dividend equivalents relating to
such vested Restricted Stock Units. Such shares of Common Stock shall be credited
as book entry shares to the Grantee’s trading account, unless the Grantee
requests stock certificates, in which case the Company shall deliver to the Grantee
stock certificates representing such Common Stock. 

 

            7.         No Employment Contract.  Nothing
contained in this Agreement shall confer upon the Grantee any right with
respect to continuance of employment by the Company, or limit or affect in any
manner the right of the Company to terminate the employment or adjust the
compensation of the Grantee.

 

            8.         Taxes and Withholding.  If the
Company shall be required to withhold any federal, state, local or foreign tax
in connection with the issuance or vesting of any Restricted Stock Units or the
issuance of any unrestricted shares of Common Stock or other securities following
vesting pursuant to this Agreement, it shall be a condition to such vesting or
issuance that the Grantee pay the tax or make provisions that are satisfactory
to the Company for the payment thereof.  Unless the Grantee makes alternative
arrangements satisfactory to the Company prior to the vesting of the Restricted
Stock Units or the issuance of shares of unrestricted Common Stock, as the case
may be, the Grantee will satisfy the minimum statutory tax withholding
obligations by surrendering to the Company a portion of the shares of
nonforfeitable and unrestricted Common Shares that are issued or transferred to
the Grantee hereunder following the Vesting Date, and the shares of Common Stock
so surrendered by the Grantee shall be credited against any such withholding
obligation at the Market Value per Share of such shares on the Vesting Date.

 

            9.         Compliance with Law.  The Company
shall make reasonable efforts to comply with all applicable federal and state
securities laws; provided, however, notwithstanding any other provision of this
Agreement, the Company shall not be obligated to issue any Restricted Stock
Units or shares of unrestricted Common Stock or other securities pursuant to
this Agreement if the issuance thereof would result in a violation of any such
law.

 

            10.        Relation to Other Benefits.  Any
economic or other benefit to the Grantee under this Agreement shall not be
taken into account in determining any benefits to which the Grantee may be
entitled under any profit-sharing, retirement or other benefit or compensation
plan maintained by the Company and shall not affect the amount of any life
insurance coverage available to any beneficiary under any life insurance plan
covering employees of the Company.  

 

            11.        Amendments.  Any Amendment to the
Plan shall be deemed to be an amendment to this Agreement to the extent that
the amendment is applicable hereto; provided, however, that no amendment shall
adversely affect the rights of the Grantee under this Agreement without the
Grantee’s consent.

 

            12.        Severability.  In the event that one
or more of the provisions of this Agreement shall be invalidated for any reason
by a court of competent jurisdiction, any provision so invalidated shall be
deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.

 

            13.        Relation to Plan; Miscellaneous. 
This Agreement is subject to the terms and conditions of the Plan.  In the
event of any inconsistent provisions between this Agreement and the Plan, the
Plan shall govern.  Capitalized terms used herein without definition shall have
the meanings assigned to them in the Plan.  All references in this Agreement to
the Company shall be deemed to include, unless the context in which it is used
suggests otherwise, its subsidiaries, divisions and affiliates.

 

            14.        Successors and Assigns.  Subject to
Section 2 hereof, the provisions of this Agreement shall inure to the benefit
of, and be binding upon, the successors, administrators, heirs, legal
representatives and assigns of the Grantee including any transferee pursuant to
Section 2(b), and the successors and assigns of the Company; provided, however,
that a transferee pursuant to Section 2(b) shall not transfer any Restricted
Stock Units other than by will or by the laws of descent and distribution
unless the Company consents in writing to such transfer.

 

            15.        Governing Law.  The interpretation,
performance, and enforcement of this Agreement shall be governed by the laws of
the State of Delaware.

 

            16.        Definitions.

 

(a) 
“cause” shall mean that the Grantee has committed prior to termination of
employment any of the following acts:

 

(i)  an intentional act of fraud, embezzlement, theft,
or any other material violation of law in connection with the Grantee’s duties
or in the course of the Grantee’s employment;

 

(ii)  intentional wrongful damage to material assets
of the Company;

 

(iii)  intentional wrongful disclosure of material
confidential information of the Company;

 

(iv)  intentional wrongful engagement in any
competitive activity that would constitute a material breach of the duty of
loyalty; 

 

(v)  intentional breach of any stated material
employment policy of the Company; or

 

(vi)  intentional neglect by the Grantee of the
Grantee’s duties and responsibilities.

 

(b) 
“Good Reason” shall mean:

 

(i)  a material diminution in the Grantee’s base
compensation;

 

(ii)  a material diminution in the Grantee’s
authority, duties or responsibilities;

 

(iii)  a material change in the geographic location at
which the Grantee must perform the Grantee’s services; or

 

(iv)  any other action or inaction that constitutes a
material breach by the Company of an agreement under which the Grantee provides
services.

 

(c) 
“Change in Control” shall mean the occurrence of any of the following events:

 

(i)  The acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 30% or more of the combined voting power of the
then-outstanding securities of the Company entitled to vote generally in the
election of directors (the “Voting Stock”); provided, however, that for
purposes of this subsection (i), the following acquisitions will not constitute
a Change of Control:  (A) any acquisition of Voting Stock directly from the
Company that is approved by a majority of the Incumbent Board (as defined in
subsection (ii) below); (B) any acquisition of Voting Stock by any entity in
which the Company, directly or indirectly, beneficially owns 50% or more
ownership or other equity interest (a “Subsidiary”); (C) any acquisition of
Voting Stock by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Subsidiary; or (D) any acquisition of Voting
Stock by any Person pursuant to a transaction that complies with clauses (A),
(B) and (C) of subsection (iii) below; provided further, that:  (X) if any
Person is or becomes the beneficial owner of 30% or more of the Voting Stock as
a result of a transaction described in clause (A) of this subsection (i), and
such Person thereafter becomes the beneficial owner of any additional shares of
Voting Stock, and after obtaining such additional beneficial ownership
beneficially owns 30% or more of the Voting Stock, other than in an acquisition
of Voting Stock directly from the Company that is approved by a majority of the
Incumbent Board or other than as a result of a stock dividend, stock split or
similar transaction effected by the Company in which all holders of Voting
Stock are treated equally, such subsequent acquisition will be treated as a
Change in Control; and (Y) a Change in Control will not be deemed to have
occurred if a Person is or becomes the beneficial owner of 30% or more of the
Voting Stock as a result of a reduction in the number of shares of Voting Stock
outstanding pursuant to a transaction or series of transactions approved by a
majority of the Incumbent Board unless and until such Person thereafter becomes
the beneficial owner of any additional shares of Voting Stock, and after obtaining
such additional beneficial ownership beneficially owns 30% or more of the
Voting Stock, other than as a result of a stock dividend, stock split or
similar transaction effected by the Company in which all holders of Voting
Stock are treated equally; or 

 

(ii)  Individuals who, on the effective date of the
Plan, constitute the Board of Directors of the Company (as modified by this
subsection (ii), the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board of Directors of the Company (the “Board”); provided,
however, that any individual becoming a director after the effective
date of the Plan whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two-thirds of the directors
then comprising the Incumbent Board (either by a specific vote or by approval
of the proxy statement of the Company in which such person is named as a
nominee for director, without objection to such nomination) shall be considered
as though such individual were a member of the Incumbent Board such effective
date, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board; or

 

(iii)  The consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company (each, a “Business Combination”), unless, in each case,
immediately following such Business Combination, (A) all or substantially all
of the individuals and entities who were the beneficial owners, respectively,
of the Voting Stock immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of, respectively, the
then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity that as a result of such
transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions relative to each other as their ownership, immediately
prior to such Business Combination, of the Voting Stock, (B) no Person
(excluding any employee benefit plan (or related trust) sponsored or maintained
by the Company or any Subsidiary or such entity resulting from such Business
Combination) beneficially owns, directly or indirectly, 30% or more of,
respectively, the combined voting power of the then-outstanding securities
entitled to vote generally in the election of directors of the entity resulting
from such Business Combination except to the extent that such ownership existed
prior to the Business Combination, and (C) at least a majority of the members of
the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of
the initial agreement, or of the action of the Board, providing for such
Business Combination; or

 

(iv)  Approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company.

 

            IN WITNESS
WHEREOF, the Company has caused this Agreement to be executed on its behalf by
its duly authorized officer, and Grantee has also executed this Agreement in
duplicate, as of the day and year first above written.

 

 

 

MACY’S,
INC.

 

 

By:
___________________________________

                                                                             
Dennis J. Broderick

Title: Executive Vice President, General Counsel and
Secretary

 

 

 

______________________________________

_________________________,
Grantee

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