Document:

Department Stores National Bank

701 E. 60th Street North

Sioux Falls, South Dakota 57104

 

                                   May
30, 2008

Macy's, Inc,
(fka Federated Department Stores, Inc.)

7 West Seventh Street

Cincinnati, Ohio 45202

Attention:  General Counsel

FDS Bank

9111 Duke Boulevard

Mason, Ohio   45040

Attention: 
President

Macy's Credit
and Customer Services, Inc. (fka FACS Group, Inc.)

9111 Duke Boulevard

Mason, Ohio   45040

Attention: 
President

Ladies and
Gentlemen:

            Reference is made to the Credit Card Program
Agreement, dated as of June 1, 2005 (as amended, supplemented or otherwise
modified from time to time, the "Program Agreement"), by and among Macy's,
Inc. (fka Federated Department Stores, Inc.), a Delaware corporation, ("Macy's,
Inc."), FDS Bank, a federally-chartered stock savings bank ("FDS Bank"),
Macy's Credit and Customer Services, Inc. (fka FACS Group, Inc.), an Ohio
corporation ("MCCS", FDS Bank, Macy's
Department Stores, Inc., an Ohio corporation ("Macy's"), Bloomingdale's,
Inc., an Ohio corporation ("Bloomingdale's") (collectively the "Macy's
Companies"), and Citibank, N.A., a national banking association ("Bank"),
the interest of which under the Program Agreement was subsequently assigned to
Department Stores National Bank ("DSNB").  Capitalized terms used herein
but not defined herein shall have the meanings given to such terms in the
Program Agreement.

            Consistent with our recent discussions, DSNB
and the Macy's Companies wish to revise the Program Agreement in certain
respects. This restated letter is effective as of March 22, 2007 (the "Letter
Agreement"), and sets forth below our understanding of the revisions to which
the parties have agreed. 

1.         Schedule 4.8(a)(IV)(c)
- (d) is hereby amended by deleting the same in its entirety and substituting
the attached new Schedule 4.8(a)(IV)(c) - (d) in its place.

2. Except as expressly amended by
this Letter Agreement, the Program Agreement, as previously amended, remains
unchanged.

3.          Counterparts;
Facsimile. This Letter Agreement may be executed in any number of
counterparts, all of which together shall constitute one and the same
instrument, but in making proof of this Letter Agreement, it shall not be
necessary to produce or account for more than one such counterpart.  Any
facsimile of an executed counterpart shall be deemed an original.

4.         The
agreements of the parties set forth herein shall have the same effect as if
approved by the unanimous approval of the Operating Committee pursuant to
Article III of the Program Agreement.  

[Remainder of Page Intentionally
Left Blank]

Please acknowledge your
agreement with the foregoing by executing this Letter Agreement as indicated
below.

                                                                              Very
truly yours,                 

                                                                              DEPARTMENT STORES NATIONAL BANK

By:   /s/
Douglas C. Morrison

Name:
Douglas C. Morrison

Title: Citi Cards

         Vice
President and Chief Fin. Officer

          Sioux Falls, SD

Agreed to by:

MACY'S, INC.
(fka Federated Department Stores, Inc.) 

By:   /s/ 
Dennis J. Broderick

Name: 
Dennis J. Broderick

Title:  SVP, General Counsel & Secretary

FDS BANK

By:   /s/ 
Teresa Huxel

Name: Teresa Huxel

Title:  President

MACY'S CREDIT
AND CUSTOMER SERVICES, INC. (fka FACS Group, Inc.)

By:   /s/ 
Teresa Huxel

Name:  Teresa Huxel

Title:  SVP & CFO 

MACY'S
DEPARTMENT STORES, INC.

By:   /s/ 
Dennis J. Broderick

Name: Dennis J. Broderick

Title:  President

BLOOMINGDALE'S,
INC.

By:   /s/
Dennis J. Broderick

Name:  
Dennis J. Broderick

Title:   Vice President

SCHEDULE
4.8(a)(IV)(c) - (d)

"(c)     
'Assumed Redemption Percentage' means (i)
until February 3, 2007, the percentage set forth for each Cardholder Level
listed below, and (ii) thereafter prior to each Subsequent Year, the parties
shall mutually agree upon both a redemption percentage (or percentages) and
whether such percentage(s) shall be applied at the Macy's retail division or
Cardholder Level for such Subsequent Year (which percentage(s)  may, in the
parties' discretion, be determined by consideration of such factors as actual
performance and projected trends).

	
  %

  	
  Cardholder Level

  	
  %

  	
  Cardholder Level

  
	
  92%

  	
  Macy's Elite Visa

  	
  92%

  	
  Bloomingdale's
  Ultimate Premier Visa

  
	
  92%

  	
  Macy's Platinum Visa

  	
  92%

  	
  Bloomingdale's
  Premier Visa

  
	
  73%

  	
  Macy's Gold Visa

  	

  	

  
	

  	

  	

  	

  

'Prior Review Year' means any period of time which
the parties review for actual redemption performance.   

'Reward Redemption Settlement Sheet' means a
settlement sheet on which the parties make the true-up described below in this
subsection (d), including, if chosen by the parties, the Year End Settlement
Sheet.   

'Subsequent Year' means any period of time for which
the parties set new redemption percentages.   

(d) When the parties set redemption percentages for any
Subsequent Year which commences on or after February 4, 2007, the parties shall
also decide whether, for that Subsequent Year, the new redemption percentages
shall apply to Cardholder Levels or shall apply to Macy's retail divisions.  

If, as of the end of any Prior Review Year, the actual
redemption percentage for any Cardholder Level or Macy's retail division (as
the case may be) exceeds the Assumed Redemption Percentage for such Prior
Review Year, the Reward Redemption Settlement Sheet shall indicate the amount
of excess, and Bank shall make a payment to Macy's equal to the amount of such
excess multiplied by the aggregate amount of Earned Rewards in respect of such Cardholder Level or Macy's retail division in such Review Year, which will be
included in the Program P&L solely with respect to General Purpose
Accounts.   If, as of the end of any Prior Review Year, the actual redemption
percentage for any Cardholder Level or Macy's retail division (as the case may
be) is less than the Assumed Redemption Percentage for such Prior Review Year,
the Reward Redemption Settlement Sheet shall indicate the amount of such
difference, and Macy's shall make a payment to Bank equal to the amount of such
difference multiplied by the aggregate amount of Earned Rewards in respect of
such Cardholder Level or Macy's retail division in such Prior Review Year,
which will be included in the Program P&L solely with respect to General
Purpose Accounts. "Department Stores National Bank

Department Stores National Bank

701 E. 60th Street North

Sioux Falls, South Dakota 57104

 

 May
30, 2008

Macy's, Inc.
(fka Federated Department Stores, Inc.)

7 West Seventh Street

Cincinnati, Ohio 45202

Attention:  General Counsel

FDS Bank

9111 Duke Boulevard

Mason, Ohio   45040

Attention: 
President

Macy's Credit
and Customer Services, Inc. (fka FACS Group, Inc)

9111 Duke Boulevard

Mason, Ohio   45040

Attention: 
President

Ladies and
Gentlemen:

           Reference is made to the Credit Card Program Agreement, dated
as of June 1, 2005 (as amended, supplemented or otherwise modified from time to
time, the "Program Agreement"), by and among Macy's, Inc. (fka Federated
Department Stores, Inc.), a Delaware corporation, ("Macy's, Inc."), FDS
Bank, a federally-chartered stock savings bank ("FDS Bank"), Macy's
Credit and Customer Services, Inc. (fka FACS Group, Inc.), an Ohio corporation
("MCCS"), FDS Bank, ,Macy's Department Stores,
Inc., an Ohio corporation ("Macy's"), Bloomingdale's, Inc., an Ohio
corporation ("Bloomingdale's")( collectively, the "Macy's Companies"),
and Citibank, N.A., a national banking association ("Bank"), the
interest of which under the Program Agreement was subsequently assigned to
Department Stores National Bank ("DSNB").  

Further reference is made to that
certain agreement named "Department Stores National
Bank Co-Branded Payment Card Issuance Agreement" by and between DSNB and Visa
U.S.A. Inc. ("Visa")  ("New Co-Brand Agreement") entered into by DSNB and Visa
contemporaneously with the April 6, 2007 effective date of this restated letter
agreement (the "Letter Agreement").  

Capitalized terms used herein but
not defined herein shall have the meanings given to such terms in the Program
Agreement. 

1. New Co-Brand Agreement. DSNB
and the Macy's Companies agree as set forth in the attached Schedule with
respect to the New Co-Brand Agreement.

2. No Further Amendment.
Except as expressly amended by this Letter Agreement, the Program Agreement, as
previously amended, remains unchanged.

3. Counterparts; Facsimile.
This Letter Agreement may be executed in any number of counterparts, all of
which together shall constitute one and the same instrument, but in making
proof of this Letter Agreement, it shall not be necessary to produce or account
for more than one such counterpart.  Any facsimile of an executed counterpart
shall be deemed an original.

4. Operating
Committee Approval. The agreements of the parties set forth herein shall
have the same effect as if approved by the unanimous approval of the Operating
Committee pursuant to Article III of the Program Agreement.  

[Remainder of Page
Intentionally Left Blank]

Please acknowledge your
agreement with the foregoing by executing this Letter Agreement where provided
below.

                                                                              Very
truly yours,                 

DEPARTMENT STORES NATIONAL BANK

By:   /s/
Douglas C. Morrison

Name:
Douglas C. Morrison

Title: Citi Cards

         Vice
President and Chief Fin. Officer, Sioux Falls, SD

Agreed to by:

MACY'S, INC.
(fka Federated Department Stores, Inc.) 

By:   /s/ 
Dennis J. Broderick

Name: 
Dennis J. Broderick

Title:  SVP, General Counsel & Secretary

FDS BANK

By:   /s/ 
Teresa Huxel

Name: Teresa Huxel

Title:  President

MACY'S CREDIT
AND CUSTOMER SERVICES, INC. (fka FACS Group, Inc.)

By:   /s/ 
Teresa Huxel

Name:  Teresa Huxel

Title:  SVP & CFO 

MACY'S
DEPARTMENT STORES, INC.

By:   /s/ 
Dennis J. Broderick

Name: Dennis J. Broderick

Title:  President

BLOOMINGDALE'S,
INC.

By:   /s/
Dennis J. Broderick

Name:  
Dennis J. Broderick

Title:   Vice President

SCHEDULE to DSNB-FDSB
Letter Agreement 4/6/07 (Visa Co-Brand)

The terms "Visa Fees", "Program Accounts", "Incentive Fee",
"Branding Requirement" and "Term" as used in this Letter Agreement shall have
the meanings given to them in the New Co-Brand Agreement.

(a)  DSNB will, before entering into any amendment with
respect to the New Co-Brand Agreement, consult with the Macy's Companies
with regard to the same.  In addition, DSNB will
obtain the prior written consent of an Macy's Company before DSNB either
exercises or fails to exercise any rights under the New Co-Brand Agreement, or
agrees with Visa U.S.A., Inc. to modify the New
Co-Brand Agreement, in either event in any way that: (i) impacts the
fees charged to DSNB on Program Accounts and/or the Incentive Fee payable by
Visa under the New Co-Brand Agreement; (ii) waives, alters or limits Bank's
right to exclude Program Accounts from the New Co-Brand Agreement from the
Branding Requirement pursuant to Section 3.2 of the New Co-Brand Agreement;
(iii) waives, alters or limits the Macy's Companies' ability to issue non-Visa
branded general purpose debit accounts; or  (iv) extends, reduces or otherwise
affects the Term of the New Co-Brand Agreement; 

(b)  In the
event that DSNB is required to refund to Visa U.S.A., Inc. any Incentive Fees
paid to DSNB by Visa and passed by DSNB to the Macy's Companies as a result of
any action taken or not taken by DSNB at the written direction of the Macy's
Companies (the "Refund Amount"), the Macy's Companies will refund to DSNB the
amount of the Incentive Fees passed by DSNB to the Macy's Companies that
constitute the Refund Amount; 

(c)  In the
event that Visa should seek to alter, amend or terminate the New Co-Brand
Agreement as a result of the Macy's Companies' issuance of non-Visa-branded
general purpose debit accounts accessed by cards bearing the Macy's or
Bloomingdale's brands, the Macy's Companies shall cooperate with and assist
DSNB in negotiations with Visa to avoid such action by Visa, and shall consider
such limitations on its issuance of such debit accounts as are necessary to
avoid such Visa action; and

(d)   The Macy's Companies
shall provide all the reporting necessary in order to receive the Incentive
Fees from Visa pursuant to the New Co-Brand Agreement. As to all such
reporting, the Macy's Companies certify that such reporting shall be prepared
using commercially reasonably diligence in accordance with the records of the Macy's
Companies, and that, to the best of the Macy's Companies' knowledge, all such
reporting is accurate and complete. The Macy's Companies shall cooperate with
and assist DSNB in responding to any audit requested by Visa under the
provisions of the New Co-Brand Agreement.

(e)    For the
avoidance of doubt, the parties agree that any increases under the New Co-Brand
Agreement in Visa fees (including, but not limited to, VisaNet Processing
Guarantee Fees, Advertising and Marketing Service Fees, Merchant Incentive Fees
and Base I and II Fees) charged to DSNB (other than Service Fees on
Credit and Prepaid Sales which under the terms of the New Co-Brand Agreement
would result in adjustment of the Incentive Fees paid to DSNB) will be
considered part of the Actual Service Fees paid by DSNB for purposes of
calculating any Make Whole Payment under Schedule 9.3(c) of the Program
Agreement.

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