Document:

Exhibit

EXHIBIT 10.18

MACY’S, INC.
DEFERRED COMPENSATION PLAN
(Amended and restated effective as of August 1, 2018)

MACY’S, INC.
DEFERRED COMPENSATION PLAN
(Amended and restated effective as of August 1, 2018)
SECTION 1
INTRODUCTION TO PLAN
1.1    Name and Sponsor of Plan.  The name of this Plan is the Macy’s, Inc. Deferred Compensation Plan, and its sponsor is Macy’s.
1.2    Purpose of Plan.  The purpose of the Plan is to provide deferred compensation for a select group of management and highly compensated employees of the Company.
1.3    Effective Date and Amendment of Plan.  The Plan was initially effective as of January 1, 2014, and is not a continuation of any prior plan of Macy’s.  The Plan was subsequently amended from time to time, and is amended and restated in its entirety as set forth herein, effective as of the date first written above.
SECTION 2
GENERAL DEFINITIONS
For all purposes of the Plan, the following terms of this section 2 shall have the meanings hereinafter set forth, unless the context clearly indicates otherwise.
2.1    “Account” means, with respect to any Participant, the bookkeeping account maintained for the Participant under the terms of this Plan and to which amounts are credited or otherwise allocated under the subsequent sections of the Plan in order to help determine the Participant’s benefits under the Plan.  As is indicated elsewhere in the Plan, a Participant’s Account may be divided into subaccounts to the extent necessary to properly administer the Plan. 
2.2    “Aggregate Elective Deferrals” means, with respect to any Participant and for any Plan Year, the sum of (i) the Participant’s Basic Salary and Incentive Award Payment amounts that are credited to the Participant’s Account under the Plan as of dates within such Plan Year and (ii) the Participant’s elective deferrals (as defined in Code Section 402(g)(3)) that are credited to the Participant’s account under and pursuant to the Macy’s 401(k) Plan as of dates within such Plan Year.
2.3    “Basic Salary” means, with respect to any Employee, the basic salary (not including awards, bonuses, or any other remuneration not treated by the Company as part of the Employee’s base rate of salary) payable to the Employee by the Company.  
2.4    “Beneficiary” means, with respect to any Participant, the person or entity designated by the Participant, on forms furnished and in the manner prescribed by the Committee, to receive any benefit payable under the Plan after the Participant’s death.  If a Participant fails to designate a beneficiary or if, for any reason, such designation is not effective, his or her “Beneficiary” shall be deemed to be his or her surviving spouse or, if none, his or her estate.

2.5    “Board” means the Board of Directors of Macy’s.
2.6    “Change in Control” means the occurrence of any of the events described in subsection 2.6(a), (b), and (c) hereof.  All of such events shall be determined under and subject to all of the terms of Section 1.409A-3(i)(5) of the Treasury Regulations.
(a)    A change in the ownership of Macy’s (within the meaning of Section 1.409A-3(i)(5)(v) of the Treasury Regulations).  In very general terms, Section 1.409A-3(i)(5)(v) of the Treasury Regulations provides that a change in the ownership of Macy’s occurs when a person or more than one person acting as a group acquires outstanding stock of Macy’s that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of Macy’s.
(b)    A change in the effective control of Macy’s (within the meaning of Section 1.409A-3(i)(5)(vi) of the Treasury Regulations).  In very general terms, Section 1.409A-3(i)(5)(vi) of the Treasury Regulations provides that a change in the effective control of Macy’s occurs either:
(1)    when a person or more than one person acting as a group acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of Macy’s possessing 30% or more of the total voting power of the stock of Macy’s; or
(2)    when a majority of members of the Board is replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.
(c)    A change in the ownership of a substantial portion of the assets of Macy’s (within the meaning of Section 1.409A-3(i)(5)(vii) of the Treasury Regulations).  In very general terms, Section 1.409A-3(i)(5)(vii) of the Treasury Regulations provides that a change in the ownership of a substantial portion of the assets of Macy’s occurs when a person or more than one person acting as a group acquires (or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person or persons) assets from Macy’s that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of Macy’s immediately prior to such acquisition or acquisitions.
2.7    “Code” means the Internal Revenue Code of 1986, as it exists as of the Effective Date and as it may thereafter be amended.  A reference to a specific section of the Code shall be deemed to be a reference both (i) to the provisions of such section as it exists as of the Effective Date and as it is subsequently amended, renumbered, or superseded (by future legislation) and (ii) to the provisions of any section of the Treasury Regulations that is issued under such section.
2.8    “Committee” means the committee appointed to administer the Plan under the provisions of subsection 9.1 hereof.
2.9    “Company” means all of the Employers considered collectively.
2.10    “Compensation” means, as to any Participant and with respect to any Plan Year, the amount of the Participant’s remuneration from the Company that would be considered the Participant’s “compensation” under the Macy’s 401(k) Plan for purposes of determining the Company’s “matching contributions” under and as defined in the Macy’s 401(k) Plan for such Plan Year if: (i) except to the extent otherwise noted in clause (ii), the terms of the Macy’s 401(k) Plan as in effect on the first day of such Plan Year never changed and were to apply to such Plan Year in its entirety; and (ii) the Tax-Qualified Plan Annual 

Compensation Limit and the terms of the Macy’s 401(k) Plan that are intended to reflect that limit were disregarded for such Plan Year.
2.11    “Effective Date” means January 1, 2014.
2.12    “Eligible Employee” means, with respect to any Plan Year (or any other period described in subsections 3.2 or 3.3 hereof), any Employee who, pursuant to the provisions of section 3 hereof, is eligible to elect to have contributions made on his or her behalf under the Plan pursuant to the provisions of section 4 hereof for such Plan Year (or such other period).
2.13    “Employee” means any person who (i) is a common law employee of the Company (i.e., a person whose work procedures are subject to control by the Company) and paid by the Company from an employee payroll of the Company and (ii) is treated by the Company as exempt from the premium overtime pay requirements of the federal Fair Labor Standards Act of 1938, as amended.
2.14    “Employer” means each of: (i) Macy’s; and (ii) each other corporation or other organization that is deemed to be a single employer with Macy’s under Section 414(b) or (c) of the Code (i.e., as part of a controlled group of corporations that includes Macy’s or under common control with Macy’s).
2.15    “ERISA” means the Employee Retirement Income Security Act of 1974, as it exists as of the Effective Date and as it may thereafter be amended.  A reference to a specific section of ERISA shall be deemed to be a reference both (i) to the provisions of such section as it exists as of the Effective Date and as it is subsequently amended, renumbered, or superseded (by future legislation) and (ii) to the provisions of any government regulation that is issued under such section.
2.16    “Fiscal Year” means Macy’s tax year for federal income tax purposes.  As of the Effective Date, the last day of the “Fiscal Year” is the Saturday that is nearest to January 31 of a calendar year. 
2.17    “Incentive Award Payment” means, with respect to any Employee, any amount that becomes payable to the Employee pursuant to an award that is granted to the Employee under the Macy’s Annual Incentive Plan with respect to a Fiscal Year.
2.18    “Macy’s” means Macy’s, Inc. (and, except for purposes of determining whether a Change in Control has occurred, any legal successor to Macy’s, Inc. that results from a merger or similar transaction).
2.19    “Macy’s Annual Incentive Plan” means the incentive compensation plans that are maintained by the Company and under which annual performance-based compensation awards are made to executives of the Company, as such plans are in effect as of the Effective Date and as they may be amended or added after such date.  
2.20    “Macy’s 401(k) Plan” means the Macy’s, Inc. 401(k) Retirement Investment Plan, as such plan is in effect as of the Effective Date and as it may be amended after such date.  The Macy’s 401(k) Plan is intended to be a tax-qualified plan under Section 401(a) of the Code and generally permits Employees to elect to make contributions to such plan from their pay and provides for the Company to make matching contributions (contributions that are made in relation to the elective contributions of Employees) to such plan. 
2.21    “Participant” means, at any time, a person who (i) is an Eligible Employee with respect to a Plan Year (or other period described in subsections 3.2 or 3.3 hereof) which has not yet ended or (ii) has amounts still allocated to an Account held for him or her under the Plan.  Such a person shall remain a Participant until the first date on which he or she is not an Eligible Employee with respect to a Plan Year in 

which such date occurs and any amounts that may have been allocated to his or her Account under the Plan have been fully paid and/or forfeited, as the case may be.
2.22    “Plan” means the Macy’s, Inc. Deferred Compensation Plan, as set forth in this document (and as such plan may be amended after the Effective Date).
2.23    “Plan Year” refers to the twelve month period on which Plan records are kept and means a calendar year that begins on or after the Effective Date.  The first Plan Year of the Plan is the calendar year that begins on the Effective Date.  The Plan Year also serves as the plan year of the Macy’s 401(k) Plan for periods that begin after December 31, 2013.  
2.24    “Tax-Qualified Plan Annual Compensation Limit” means, with respect to any calendar year, the annual compensation limit that, for any plan that is subject to Code Section 401(a), applies for that plan’s plan year which begins in such calendar year under Section 401(a)(17) of the Code (as such limit is adjusted as of January 1 of such calendar year under Section 401(a)(17)(B) of the Code).
2.25    “Total Disability” or “Totally Disabled” means or refers to, with respect to any Participant, the Participant’s permanent and continuous mental or physical inability by reason of injury, disease, or condition to meet the requirements of any employment for wage or profit.  A Participant shall be deemed to be disabled for purposes of the Plan only when both of the two requirements set forth in subsection 2.25(a) and (b) are met.  
(a)    First, a licensed physician or psychiatrist must provide to the Committee a written opinion that the Participant is totally disabled as that term is defined herein.  
(b)    Second, the Participant must be eligible for and receive total disability benefits under Section 223 of the federal Social Security Act, as amended, or any similar or subsequent section or act of like intent or purpose (unless the Committee determines, based on the written opinion of a licensed physician or psychiatrist provided the Committee pursuant to subsection 2.25(a) hereof, that the Participant would be likely to qualify for such total disability benefits if he or she survived a sufficient amount of time to be processed for and receive such benefits but that he or she is also likely to die before he or she would otherwise be determined by the Social Security Administration or other applicable government agency to qualify for or to receive such benefits).
2.26    “Treasury Regulations” means all final regulations issued by the U.S. Department of the Treasury under the Code, as such regulations exist as of the Effective Date and as they are subsequently amended, renumbered, or superseded.  A reference to a specific section or paragraph of the Treasury Regulations shall be deemed to be a reference to the provisions of such section or paragraph as it exists as of the Effective Date and as it is subsequently amended, renumbered, or superseded.
SECTION 3
ELIGIBILITY FOR PLAN AND PLAN ACCOUNTS
3.1    General Rules of Eligibility for Plan Year.  Subject to the provisions of subsection 3.3 hereof, an Employee shall be eligible to actively participate in the Plan, and hence shall be considered an “Eligible Employee” in the Plan, with respect to any Plan Year (for purposes of this subsection 3.1, the “subject Plan Year”) if he or she meets all of the following conditions:

 (a)    he or she has, prior to the start of the subject Plan Year, both been credited with a year of Eligibility Service (as defined in and determined under the Macy’s 401(k) Plan) and attained at least age 21;
(b)    the sum of his or her annual rate of Basic Salary in effect as of the latest September 1 that precedes the start of the subject Plan Year and his or her targeted bonus under the Macy’s Annual Incentive Plan for the Fiscal Year in which such September 1 falls exceeds the Tax-Qualified Plan Annual Compensation Limit that applies to the calendar year that immediately precedes the calendar year with or in which the subject Plan Year begins; 
(c)    he or she is an Employee at the start of the subject Plan Year; and 
(d)    he or she represents to the Committee by the start of the subject Plan Year that his or her tax year for federal income tax purposes is a calendar year.
3.2    Special Rules of Eligibility for Certain Newly Eligible Participants.  As a special eligibility rule, if an Employee is not eligible to participate in the Plan with respect to a Plan Year (for purposes of this subsection 3.2, the “subject Plan Year”) under the terms of subsection 3.1 hereof, but he or she meets all of the conditions set forth in subsection 3.2(a) hereof with respect to a calendar quarter that falls in the subject Plan Year (for purposes of this subsection 3.2, the “subject Plan Year quarter”), then Macy’s may in its discretion designate that the Employee shall be eligible to actively participate in the Plan, and hence shall be considered an “Eligible Employee” in the Plan, for the period (for purposes of this subsection 3.2, the “subject Plan Year period”) that begins on the first day of the subject Plan Year quarter and ends on the last day of the subject Plan Year.  
(a)    The conditions that must be met by the Employee with respect to the subject Plan Year quarter in order for Macy’s to designate the Employee as an Eligible Employee for the subject Plan Year period pursuant to the preceding terms of this subsection 3.2 are the following:
(1)    the Employee has, prior to the start of the subject Plan Year quarter, both been credited with a year of Eligibility Service (as defined in and determined under the Macy’s 401(k) Plan) and attained at least age 21;
(2)    the sum of the Employee’s annual rate of Basic Salary in effect as of the pay determination date that applies to the subject Plan Year quarter (as determined under the provisions of subsection 3.2(b) hereof) and the Employee’s targeted bonus under the Macy’s Annual Incentive Plan for the Fiscal Year in which such pay determination date falls exceeds the Tax-Qualified Plan Annual Compensation Limit that applies to the calendar year in which the subject Plan Year quarter falls; 
(3)    he or she is an Employee at the start of the subject Plan Year quarter;
(4)    prior to the start of the subject Plan Year quarter, he or she has never been eligible to participate in the Plan (or in any other plan of the Company that is treated as a single plan with the Plan under the provisions of Section 1.409A-1(c)(2) of the Treasury Regulations); and
(5)    he or she represents to the Committee by the start of the subject Plan Year quarter that his or her tax year for federal income tax purposes is a calendar year.
(b)    For purposes of subsection 3.2(a)(2) hereof, the “pay determination date” that applies to the subject Plan Year quarter means a date (i) that occurs in the 90-consecutive day period that ends on the date that immediately precedes the first day of the subject Plan Year quarter and (ii) that is chosen by 

Macy’s to be used for purposes of determining the Employee’s eligibility to become a Participant in the Plan.    
(c)    For purposes of the provisions of subsection 3.2(a)(4) hereof, if, prior to the start of the subject Plan Year quarter, the Employee had been eligible to participate in the Plan (or in any other plan of the Company that is treated as a single plan with the Plan under the provisions of Section 1.409A-1(c)(2) of the Treasury Regulations), but had ceased being eligible to participate in the Plan (and, to the extent applicable, in every such other plan), other than for an accrual of earnings and regardless of whether all amounts deferred under the Plan (and, to the extent applicable, under each such other plan) have been paid, the Employee shall be treated as being first eligible to participate in the Plan on the first day of the subject Plan Year quarter (and to have never previously been eligible to participate in any other plan of the Company that is treated as a single plan with the Plan under the provisions of Section 1.409A-1(c)(2) of the Treasury Regulations) provided that (and only if) the Employee has not been eligible to participate in the Plan (or in any such other plan), other than for the accrual of earnings, at any time in the 24-month period ending on the first day of the subject Plan Year quarter.
3.3    Special Rules of Eligibility for Certain Newly Hired or Promoted Participants.  
(a)    As another special eligibility rule, if an Employee is not eligible to participate in the Plan with respect to a Plan Year (for purposes of this subsection 3.3, the “subject Plan Year”) under the terms of subsection 3.1 or subsection 3.2 hereof, but he or she meets all of the conditions set forth in subsection 3.3(b) hereof, then Macy’s may in its discretion designate that the Employee shall be eligible to actively participate in the Plan, and hence shall be considered an “Eligible Employee” in the Plan, for such period (for purposes of this subsection 3.3, the “subject Plan Year period”) designated by Macy’s that begins on or after the first day of the calendar month following the Employee’s date of hire or date of promotion and ends on the last day of the subject Plan Year (or, where applicable pursuant to subsection 4.1(c)(1)(B) with respect to the Employee’s Incentive Award Payment, on the last day of the Fiscal Year that begins during the subject Plan Year).
(b)    The conditions that must be met by the Employee in order for Macy’s to designate the Employee as an Eligible Employee for the subject Plan Year period pursuant to the preceding terms of this subsection 3.3 are the following:
(1)    the Employee has been newly hired by an Employer or newly promoted during the subject Plan Year and at the time of hire, has attained at least age 21;
(2)    the sum of the Employee’s annual rate of Basic Salary in effect as of the first day of the subject Plan Year period and the Employee’s targeted bonus under the Macy’s Annual Incentive Plan for the Fiscal Year that begins during the subject Plan Year exceeds the Tax-Qualified Plan Annual Compensation Limit that applies to the subject Plan Year; 
(3)    he or she is an Employee at the start of the subject Plan Year period;
(4)    prior to the start of the subject Plan Year period, he or she has never been eligible to participate in the Plan (or in any other plan of the Company that is treated as a single plan with the Plan under the provisions of Section 1.409A-1(c)(2) of the Treasury Regulations); and
(5)    he or she represents to the Committee by the start of the subject Plan Year period that his or her tax year for federal income tax purposes is a calendar year.

3.4    Active Participants Must Be Select Group of Management and Highly Compensated Employees and Loss of Active Participant Status.  Macy’s has determined that the conditions that are required under subsections 3.1, 3.2 and 3.3 hereof to become an Eligible Employee in the Plan with respect to any Plan Year (or any other period described in subsections 3.2 or 3.3 hereof) will result in any Employee who becomes an Eligible Employee for such Plan Year (or such other period) being part of a select group of management and highly compensated employees of the Company within the meaning of Sections 201, 301, and 401 of ERISA.  Notwithstanding the foregoing or any other provision of the Plan, if the Committee determines at any time that any Employee is not a part of a select group of management or highly compensated employees within the meaning of Sections 201, 301, and 401 of ERISA, he or she will not be treated as an Eligible Employee with respect to any Plan Year (or any other period described in subsections 3.2 or 3.3 hereof) that begins after such determination is made, regardless of his or her ability still to satisfy the conditions of either subsection 3.1, 3.2 or 3.3 hereof for such Plan Year (or such other period).  
3.5    Accounts.  
(a)    An Account shall be established for each Participant in the Plan.  Amounts shall be credited to a Participant’s Account in accordance with the subsequent sections of the Plan.  
(b)    The Committee may create subaccounts under any Participant’s Account to the extent needed administratively (e.g., to account for different distribution rules that apply to different portions of the Participant’s Account).  For instance, subaccounts may be created under a Participant’s Account so that each subaccount reflects (i) all of the amounts allocated to such Account that are payable under the same payment rules of section 7 hereof (as to, e.g., the number of annual payments and the commencement date of the payments) and (ii) none of the amounts allocated to such Account that are payable under any different payment rules.  
SECTION 4
ELECTIVE DEFERRALS AND COMPANY MATCH CREDITS TO ACCOUNTS
4.1    Deferrals of Basic Salary and Incentive Award Payments.
(a)    General Rules for Deferral Elections.  This subsection 4.1(a) applies to any Employee who, under the provisions of subsection 3.1 hereof, is an Eligible Employee with respect to any Plan Year (for purposes of this subsection 4.1(a), the “subject Plan Year”). 
(1)    Subject to the other subsections of this section 4 and to such administrative rules as the Committee may prescribe, the Eligible Employee may elect for the subject Plan Year, by completing a deferral agreement or deferral agreements and filing such agreement or agreements with a Plan representative by and no later than the end of the last day of the immediately preceding Plan Year (for purposes of this subsection 4.1(a), the “deadline day”), (i) to defer the receipt of any whole percent (up to but not greater than 50%) of his or her Basic Salary that is otherwise payable to him or her for services performed in the subject Plan Year and/or (ii) to defer the receipt of any whole percent (up to but not greater than 90%) of his or her Incentive Award Payment that is otherwise payable to him or her prior to his or her separation from service with the Company (under the Company’s normal payment policies under the Macy’s Annual Incentive Plan) and for services performed in the Fiscal Year that begins within the subject Plan Year.  
(2)    Subject to the other subsections of this section 4 and to such administrative rules as the Committee may prescribe, the Eligible Employee may change, or terminate and thereby void, any deferral election that he or she has made for the subject Plan Year under the provisions of subsection 

4.1(a)(1) hereof, by completing another appropriate agreement and filing such agreement with a Plan representative, up to but not after the end of the deadline day.  At the end of the deadline day, whatever deferral elections (or lack of deferral elections) he or she then has in effect shall become irrevocable for the subject Plan Year.
(3)    Notwithstanding the foregoing subparagraphs of this subsection 4.1(a), if the Employee first becomes eligible to participate in the Plan on the first day of the subject Plan Year (and if the Employee had never previously been eligible to participate in any other plan of the Company that is treated as a single plan with the Plan under the provisions of Section 1.409A-1(c)(2) of the Treasury Regulations), and if no deferral election is in effect for the Employee under the foregoing subparagraphs of this subsection 4.1(a) as of the start of the subject Plan Year, then the Employee shall still be entitled to make a deferral election in accordance with the provisions of subsection 4.1(a)(1) hereof up to but not after the 30th day after the first day of the subject Plan Year.  Any such deferral election shall be irrevocable and may not be changed or terminated for the remainder of the subject Plan Year.  Notwithstanding the foregoing subparagraphs of this subsection 4.1(a), if the Employee makes a deferral election under this subsection 4.1(a)(3) after the day that is the deadline day as to the subject Plan Year under the provisions of  subsection 4.1(a)(1), then: (i) such deferral election, to the extent it purports to apply to Basic Salary that is otherwise payable to him or her for services performed in the subject Plan Year, shall apply only to his or her Basic Salary otherwise payable for services performed in the portion of the subject Plan Year that does not include any pay period that begins before such deferral election is filed by the Employee with a Plan representative; and (ii) such deferral election, to the extent it purports to apply to an Incentive Award Payment that is otherwise payable to him or her prior to his or her separation from service with the Company (under the Company’s normal payment policies under the Macy’s Annual Incentive Plan) and for services performed in the Fiscal Year that begins within the subject Plan Year, shall only so apply if such Fiscal Year begins after such deferral election is filed by the Employee with a Plan representative.
(4)    For purposes of the provisions of subsection 4.1(a)(3) hereof, if, prior to the start of the subject Plan Year, the Employee had been eligible to participate in the Plan (or in any other plan of the Company that is treated as a single plan with the Plan under the provisions of Section 1.409A-1(c)(2) of the Treasury Regulations), but had ceased being eligible to participate in the Plan (and, to the extent applicable, in every such other plan), other than for an accrual of earnings and regardless of whether all amounts deferred under the Plan (and, to the extent applicable, under each such other plan) have been paid, the Employee shall be treated as being first eligible to participate in the Plan on the first day of the subject Plan Year (and to have never previously been eligible to participate in any other plan of the Company that is treated as a single plan with the Plan under the provisions of Section 1.409A-1(c)(2) of the Treasury Regulations) provided that (and only if) the Employee has not been eligible to participate in the Plan (or in any such other plan), other than for the accrual of earnings, at any time in the 24-month period ending on the first day of the subject Plan Year.
(b)    Newly Eligible Employee Rules for Certain Deferral Elections.  This subsection 4.1(b) applies to any Employee who, under the provisions of subsection 3.2 hereof, is an Eligible Employee with respect to a portion of any Plan Year (for purposes of this subsection 4.1(b), the “subject Plan Year period”).
(1)    Subject to the other subsections of this section 4 and to such administrative rules as the Committee may prescribe, the Eligible Employee may elect for the subject Plan Year period, by completing a deferral agreement and filing such agreement with a Plan representative by and no later than the end of the last day of the calendar month immediately preceding the first day of the subject Plan Year period (with the last day of such preceding calendar month referred to, for purposes of this subsection 4.1(b), as his or her “deadline day”), to defer the receipt of any whole percent (up to but not greater than 50%) of 

his or her Basic Salary that is otherwise payable to him or her for services performed in the subject Plan Year period. 

(2)    Subject to the other subsections of this section 4 and to such administrative rules as the Committee may prescribe, the Eligible Employee may change, or terminate and thereby void, any deferral election that he or she has made for the subject Plan Year period under the provisions of subsection 4.1(b)(1) hereof, by completing another appropriate agreement and filing such agreement with a Plan representative, up to but not after the end of his or her deadline day.  At the end of his or her deadline day, whatever deferral election (or lack of deferral election) he or she then has in effect shall become irrevocable for the subject Plan Year period.

(3)    Notwithstanding the foregoing subparagraphs of this subsection 4.1(b), if no deferral election is in effect for the Employee under the foregoing subparagraphs of this subsection 4.1(b) as of the start of the subject Plan Year period, then the Employee shall still be entitled to make a deferral election in accordance with the provisions of subsection 4.1(b)(1) hereof up to but not after the 30th day after the first day of the subject Plan Year period.  Any such deferral election shall be irrevocable and may not be changed or terminated for the remainder of the subject Plan Year period.  Notwithstanding the foregoing subparagraphs of this subsection 4.1(b), if the Employee makes a deferral election under this subsection 4.1(b)(3) after the day that is the deadline day as to the subject Plan Year period under the provisions of  subsection 4.1(b)(1), then such deferral election shall only apply to his or her Basic Salary otherwise payable for services performed in the portion of the subject Plan Year period that does not include any pay period that begins before such deferral election is filed by the Employee with a Plan representative.
(c)    Newly Hired or Promoted Employee Rules for Certain Deferral Elections.  This subsection 4.1(c) applies to any Employee who, under the provisions of subsection 3.3 hereof, is an Eligible Employee with respect to a subject Plan Year period (within the meaning of subsection 3.3 hereof). 
(1)    Subject to the other subsections of this section 4 and to such administrative rules as the Committee may prescribe, by completing a deferral agreement and filing such agreement with a Plan representative by and no later than such date as specified by Macy’s, which shall be not later than the 30th day after the first day of the subject Plan Year period (with such date referred to, for purposes of this subsection 4.1(c), as his or her “deadline day”), the Eligible Employee may elect:

(A)    To defer the receipt of any whole percent (up to but not greater than 50%) of his or her Basic Salary that is otherwise payable to him or her for services performed in the portion of the subject Plan Year period that does not include any pay period that begins before the applicable deadline day; and

(B)    If and only if (i) the Eligible Employee’s date of hire occurs during the first six months of the Fiscal Year that begins during the subject Plan Year, (ii) the Eligible Employee is the Chief Executive Officer or a senior executive who reports directly to the Chief Executive Officer or President of the Company, and whose compensation is reviewed by the Compensation and Management Development Committee of the Board on a regular basis (as described in the Macy’s, Inc. Senior Executive Severance Plan), and (iii) only to the extent permitted by Macy’s in its sole discretion, to defer the receipt of any whole percent (up to but not greater than 90%) of the Incentive Award Payment (if any) that is otherwise payable to him or her prior to his or her separation from service with the Company (under the Company’s normal payment policies under the Macy’s Annual Incentive Plan) with respect to the Fiscal Year that begins during the subject Plan Year; provided, however, that any such deferral election may only apply to the portion of such Incentive Award Payment paid for services performed by the Eligible Employee after the applicable deadline day, as determined by Macy’s in its discretion.

(2)    Any deferral election under this subsection 4.1(c) shall be irrevocable on the applicable deadline day and may not be changed or terminated thereafter for the remainder of the subject Plan Year period.
4.2    Company Match.
(a)    Right To Company Match.  For each Plan Year for which a Participant (who is an Eligible Employee with respect to such Plan Year) has any Aggregate Elective Deferrals, there shall be credited to his or her Account the amount, if any, computed in accordance with the provisions of subsection 4.2(b) hereof (which amount shall be referred to in the Plan as a “Company match”).  Notwithstanding the foregoing or any other provision of this Section 4, however, in no event will any Company match be credited to the account of any Participant described in Sections 3.3 and 4.1(c) hereof, unless and until such Participant has been credited with a year of Eligibility Service (as defined in and determined under the Macy’s 401(k) Plan).
(b)    Amount of Company Match.  For any Plan Year in which a Company match is required to be made to a Participant’s Account pursuant to the provisions of subsection 4.2(a), the Company match to be credited to the Participant’s Account for such Plan Year shall be equal to the excess, if any, by which the amount determined under subsection 4.2(b)(1) hereof exceeds the amount determined under subsection 4.2(b)(2) hereof, where such subsections 4.2(b)(1) and 4.2(b)(2) are as follows.
(1)    The amount determined under this subsection 4.2(b)(1) shall be deemed to be equal to the sum of (i) 100% of the portion of the amount of the Participant’s Aggregate Elective Deferrals for such Plan Year that does not exceed 1% of the Participant’s Compensation for such Plan Year plus (ii) 50% of the portion of the amount of the Participant’s Aggregate Elective Deferrals for such Plan Year that exceeds 1% but does not exceed 6% of the Participant’s Compensation for such Plan Year.      
(2)    The amount determined under this subsection 4.2(b)(2) shall be deemed to be equal to the greater of (i) the amount that the Company would have contributed for the Participant as “matching contributions” under and as defined in the Macy’s 401(k) Plan (under all of the terms of such plan as in effect at the start of such Plan Year, including its then terms that reflect limits on plans subject to Code Section 401(a), on cash or deferred arrangements described in Code Section 401(k), and on matching contributions described in Code Section 401(m), such as but not limited to the limits set forth under Code Sections 401(a)(17), 401(k)(3), 401(m)(2), and 415) with respect to such Plan Year if the Participant’s elective deferrals (as defined in Code Section 402(g)(3)) credited to the Participant’s account under and pursuant to the Macy’s 401(k) Plan as of dates within such Plan Year had been equal to the limit on such elective deferrals for such Plan Year that is provided under Code Section 402(g)(1)(A) and (B) and the Treasury Regulations issued thereunder (but with such limit determined without regard to Code Section 402(g)(1)(C) and Code Section 414(v)) or (ii) the actual amount that the Company contributes for the Participant as “matching contributions” under and as defined in the Macy’s 401(k) Plan for such Plan Year.  
(c)    Crediting of Company Match to Account.  Subject to such rules as the Committee may prescribe, any amount of a Company match applicable to a Participant for any Plan Year under the provisions of this subsection 4.2 shall be credited to the Account of the Employee as of the 31st day of the first March that begins after such Plan Year (or, in the sole discretion of the Committee, as of any earlier day in such March).
SECTION 5

ASSUMED INVESTMENT OF AND 
ALLOCATION OF GAINS AND LOSSES TO ACCOUNTS
5.1    Assumed Investment of Account.  Any amounts credited to the Account of a Participant under subsection 4.1 or 4.2 hereof shall be assumed to have been invested in the investments designated or deemed to be designated by the Participant on a form provided by and filed with the Committee, and adjusted by reason of such assumed investments, in accordance with the provisions of subsections 5.2, 5.3, 5.4, and 5.5 hereof.  
5.2    Start of Investment of Deferred Basic Salary and Incentive Award Payment Portion of Account.  Any portion of a Participant’s Account that is attributable to any deferred Basic Salary or Incentive Award Payment amount that is credited to the Participant’s Account under the provisions of subsection 4.1(c) hereof as of the day on which such deferred amount would otherwise have been paid to the Participant shall be assumed to have been invested beginning, and not before, a date that is not earlier than the day on which such amount is credited to the Account and not later than the seventh day after such crediting date and that, within such parameters, is chosen by the Committee in its discretion. 
5.3    Start of Investment of Company Match Portion of Account.  Any portion of a Participant’s Account that is attributable to any Company match amount made with respect to a Plan Year and that is credited to the Participant’s Account under the provisions of subsection 4.2(c) hereof as of the 31st day of the first March that begins after such Plan Year (or, in the sole discretion of the Committee, as of any earlier day in such March) shall be assumed to have been invested beginning, and not before, a date that is not earlier than the day on which such amount is credited to the Account and not later than the last day of the Plan Year in which such crediting date occurs and that, within such parameters, is chosen by the Committee in its discretion.
5.4    Assumed Investments.  The Committee shall designate in notices or other documents provided to Participants a limited number of “assumed investments” for purposes of the Plan.  Such assumed investments will generally be (but will not be required to be) limited to mutual funds or similar types of investments.  Some or all of the assumed investments designated for the Plan may be changed by the Committee to other assumed investments, effective as of any date, in which case prior written notice of such change shall be provided by the Committee to all Participants.  In no event shall any such assumed investments include an investment that is designed to invest primarily in any securities of the Company.
(a)    General Rules on Participant Designations of Assumed Investments.  The credits to any Participant’s Account made in accordance with section 4 hereof shall, beginning as of such dates as are determined under subsections 5.2 and 5.3 hereof, be assumed to have been invested among such assumed investments, and in such proportions, as is elected by the Participant through his or her completing an investment agreement and filing such agreement with a Plan representative, except that any investment direction of the Participant is subject to such reasonable administrative rules concerning such assumed investment directions as are adopted or used by the Committee.
(b)    Initial Assumed Investment Election.  The Participant must elect, before the first date a credit made to the Account established for him or her under the Plan will start to be assumed to be invested under the provisions of subsections 5.2 and 5.3 hereof, the assumed investments in which his or her Account credits are to be initially assumed to be invested and the proportions of each credit initially assumed to be invested in each designated assumed investment.  Otherwise, the Participant shall be deemed to have elected that his or her Account credits will not be assumed to be invested in any investment until he or she makes an investment election under the provisions of this subsection 5.4 (or, if the Committee in its discretion so 

decides, the Participant shall be deemed to have elected that his or her Account credits will be assumed to be initially invested in an investment or investments chosen by the Committee).
(c)    Change in Assumed Investment Election.  Further, the Participant may request a change in the assumed investments of his or her Account and the proportions of his or her new Account credits assumed to be invested in each designated investment to other assumed investments and/or proportions effective as of the first day of any Plan Year, or as of any other date as the Committee may provide in its discretion, by completing another appropriate agreement and filing such agreement with a Plan representative prior to such date (or such earlier date as may be established by the Committee).
5.5    Adjustment of Account for Assumed Investment Returns and Losses.  The amounts credited to any Participant’s Account shall be adjusted as of the last day of each Plan Year, and as of such other dates as the Committee may provide in its discretion, to reflect the assumed investment gains or losses (since the last prior adjustment in the Account) that are attributable to the assumed investments in which his or her Account is deemed to be invested.  For purposes of this Plan, the assumed net investment gains and losses of the assumed investments of any amount which is credited to a Participant’s Account under the Plan shall be deemed to be “attributable” to such amount (and to the portion of such Account that reflects such amount).
SECTION 6
VESTING IN ACCOUNTS
6.1    Vesting as to Basic Salary and Incentive Award Payment Deferral Credits.  A Participant shall always be fully (100%) vested in the portion of his or her Account under the Plan that is attributable to the Basic Salary and Incentive Award Payment amounts that are credited to such Account under the provisions of subsection 4.1 hereof.
6.2    Vesting as to Company Match Credits.  
(a)    Except as is otherwise provided under subsection 6.2(b) hereof, a Participant shall be fully (100%) vested in the portion of his or her Account under the Plan that is attributable to the Company match amounts that are credited to such Account under the provisions of subsection 4.2 hereof upon (and not until) the date he or she is credited with at least two years of Vesting Service.  In accordance with the terms of the immediately preceding sentence, and except as is otherwise provided under subsection 6.2(b) hereof, a Participant who separates from service with the Company prior to being credited with at least two years of Vesting Service shall have no (0%) vested interest in the amounts then credited to such portion of his or her Account and will forfeit the amounts then allocated to such Account portion.  For purposes of this subsection 6.2(a), a Participant’s  “Vesting Service” means the Employee’s service that is used to determine his or her vested right to a benefit under the Macy’s 401(k) Plan as such service is determined under the provisions of such plan.
(b)    Notwithstanding any other provision of this section 6 to the contrary, a Participant shall be fully (100%) vested in the portion of his or her Account under the Plan that is attributable to the Company match amounts that are credited to such Account under the provisions of subsection 4.2 hereof (provided such Account portion has not previously been forfeited under the other provisions of the Plan) upon the earliest of the following: (i) the Participant’s death prior to his or her separation from service with the Company; (ii) the Participant becoming Totally Disabled prior to his or her separation from service with the Company; or (iii) the occurrence of a Change in Control of the Company prior to his or her separation from service with the Company.

6.3    Effect of Nonvested Status of Company Match Portion of Account.  Any portion of an Account of a Participant that is at any time nonvested under the provisions of subsection 6.2 hereof shall not in any event, even when the provisions of section 7 hereof would otherwise permit a distribution of such Account portion at such time and notwithstanding any provision of section 7 hereof which may be read to the contrary, be able to be distributed to the Participant or any other party claiming through the Participant until such Account portion is no longer nonvested (and any distribution of such Account portion otherwise called for under section 7 hereof shall to the extent necessary be deferred until, and shall be made as of, the date such portion is no longer nonvested).
(a)    References to Distributable Account Not To Include Nonvested Portion.  Consistent with the rule set forth in the foregoing provisions of this subsection 6.3 and notwithstanding any other provision of section 7 hereof, any reference in any provision of section 7 hereof as to the distribution of the amounts allocated to a portion of the Account of a Participant at any time shall be deemed not to include the amounts allocated to any part of such Account portion that is then nonvested and such part shall be treated as if it were a separate class of Account until it is no longer nonvested.
(b)    Forfeiture of Nonvested Portion of Account.  Further, if a Participant separates from service with the Company (other than by reason of his or her death or Total Disability) when any portion of the Account established for him or her is nonvested, he or she shall never be entitled to receive the amounts allocated to such Account portion and such amounts shall be forfeited on the date he or she so separates from service with the Company.
6.4    Deduction of Forfeitures From Account.  Any forfeiture of any portion of a Participant’s Account under the provisions of the Plan shall be charged, as of the date such forfeiture is deemed to be made under the other provisions of this Plan, to such Account portion (or, in other words, deducted from the amounts then allocated to such Account portion).  Except as is otherwise provided under administrative policies adopted by the Committee, any such forfeiture shall be charged among all of the types of assumed investments applicable to such Account portion, on a pro rata basis.
SECTION 7
DISTRIBUTIONS
7.1    General Distribution Rules for Deferred Basic Salary.  Subject to the following provisions of this section 7 and the other provisions of the Plan, this subsection 7.1 concerns the rules for payment of the portion of the Account of a Participant that is attributable to the amount of his or her Basic Salary that is otherwise payable to the Participant for services performed in any specific Plan Year but the receipt of which has been deferred by the Participant under the Plan (for purposes of subsection 7.1(a) hereof, the “subject year’s Basic Salary deferred amount”). 
(a)    Initial Distribution Election as to Commencement Date and Form of Payment.  
(1)    Subject to the provisions of subsections 7.1(a)(2), (3), and (4) and 7.1(b) hereof and the subsections of section 7 hereof that follow subsection 7.3 hereof and to such administrative rules as the Committee may prescribe, the Participant may, in the same deferral agreement by which he or she elects under the Plan to defer the receipt of the subject year’s Basic Salary deferred amount, elect that the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount shall be paid by any of the three payment methods described in subsection 7.1(a)(1)(A), (B), and (C) hereof.

(A)    Payment Method 1 - Under the payment method described in this subsection 7.1(a)(1)(A) (for purposes of this subsection 7.1, “Payment Method 1”), the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount shall be paid in one lump sum payment as of the date on which the Participant separates from service with the Company (or, if the Participant is, on the date on which the Participant separates from service with the Company, a Specified Employee, as of the date immediately following the date which is six months after the date he or she separates from service with the Company).
(B)    Payment Method 2 - Under the payment method described in this subsection 7.1(a)(1)(B) (for purposes of this subsection 7.1, “Payment Method 2”), the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount shall: 
(x)    commence to be paid as of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company (or, if the Participant is, on the date on which the Participant separates from service with the Company, a Specified Employee, the later of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company or the date immediately following the date which is six months after the date he or she separates from service with the Company); and 
(y)    be paid in one lump sum payment or in annual payments over two to fifteen years, as chosen by the Participant when he or she first elects or elected Payment Method 2 to apply to any portion of his or her Account that is attributable to an amount of the Participant’s Basic Salary the receipt of which is deferred under the Plan.
(C)    Payment Method 3 - Under the payment method described in this subsection 7.1(a)(1)(C) (for purposes of this subsection 7.1, “Payment Method 3”), the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount shall: 
(x)    commence to be paid as of the earlier of (i) the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company (or, if the Participant is, on the date on which the Participant separates from service with the Company, a Specified Employee, the later of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company or the date immediately following the date which is six months after the date he or she separates from service with the Company) or (ii) subject to the provisions of subsection 7.1(a)(2)(C) hereof, any fixed date (for purposes of this subsection 7.1, “a Payment Method 3 initial fixed commencement date”), as chosen by the Participant when he or she first elects Payment Method 3 to apply to the portion of his or her Account that is attributable to the subject year’s Basic Salary deferred amount; and 

(y)    be paid in one lump sum payment or in annual payments over two to five years, as chosen by the Participant when he or she first elects or elected Payment Method 3 with the same initial fixed commencement date to apply to any portion of his or her Account that is attributable to an amount of the Participant’s Basic Salary the receipt of which is deferred under the Plan.
(2)    Notwithstanding any of the provisions of subsection 7.1(a)(1) hereof but subject to the provisions of subsection 7.1(b) hereof and the subsections of section 7 hereof that follow subsection 7.3 hereof, the following payment method election restrictions or conditions shall apply to the payment of the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount.

(A)    The Participant may not elect Payment Method 1 for payment of the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount if he or she has elected (or under subsection 7.1(a)(2)(D) hereof has been deemed to have elected) Payment Method 2 for payment of the portion of the Participant’s Account that is attributable to an amount of the Participant’s Basic Salary the receipt of which was deferred under the Plan for any Plan Year that was earlier than the Plan Year with respect to which the subject year’s Basic Salary deferred amount is deferred.

(B)    The Participant may not elect Payment Method 2 for payment of the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount if he or she has elected Payment Method 1 for payment of the portion of the Participant’s Account that is attributable to an amount of the Participant’s Basic Salary the receipt of which was deferred under the Plan for any Plan Year that was earlier than the Plan Year with respect to which the subject year’s Basic Salary deferred amount is deferred
.
(C)    The Participant may not elect Payment Method 3 for payment of the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount unless the elected Payment Method 3 initial fixed commencement date is no earlier than the first day of the first March that begins after the end of the Plan Year in which occurs the fifth annual anniversary of the date on which the first credit of the subject year’s Basic Salary deferred amount is made to the Participant’s Account and (ii) does not cause the Participant to have more than three different Payment Method 3 initial fixed commencements dates applicable to the entire portion of his or her Account that is payable under Payment Method 3.
(D)    In the event the Participant fails in the applicable deferral form to make any payment method election at all for payment of the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount and he or she has never elected (or under this subsection previously been deemed to have elected) either Payment Method 1 or Payment Method 2 for payment of the portion of the Participant’s Account that is attributable to an amount of the Participant’s Basic Salary the receipt of which was deferred under the Plan for any Plan Year that was earlier than the Plan Year with respect to which the subject year’s Basic Salary deferred amount is deferred, then he or she shall be deemed for all purposes of this subsection 7.1 to have elected Payment Method 2 (and to have chosen under such method that payment will be made in one lump sum payment) for payment of the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount.

(E)    In the event the Participant fails in the applicable deferral form to make any payment method election at all for payment of the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount but he or she has elected (or under subsection 7.1(a)(2)(D) hereof has been deemed to have elected) either Payment Method 1 or Payment Method 2 for payment of the portion of the Participant’s Account that is attributable to an amount of the Participant’s Basic Salary the receipt of which was deferred under the Plan for any Plan Year that was earlier than the Plan Year with respect to which the subject year’s Basic Salary deferred amount is deferred, then he or she shall be deemed for all purposes of this subsection 7.1 to have elected the same payment method for payment of the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount.
(3)    If the Participant elects to receive the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount under any payment method  that provides for annual installments of two or more payments, then (i) the date as of which the first annual installment payment is to be made shall be determined under the provisions of subsection 7.1(a)(1) hereof that describe such payment method, (ii) the date as of which any annual installment payment other than the first annual installment payment is to be made shall be an annual anniversary of the date as of which the first annual 

installment payment is to be made, and (iii) the amount of each installment payment shall be equal to the quotient obtained by dividing the amount allocated to the portion of the Participant’s Account that is attributable to the subject year’s Basic Salary deferred amount as of the date of such installment payment by the number of installment payments still to be made to the Participant under the applicable payment method (including the subject installment payment).
(4)    Notwithstanding any of the foregoing provisions of this subsection 7.1(a), if any portion of the subject year’s Basic Salary deferred amount is credited under the terms of the Plan to the Participant’s Account as of a date that is later than the latest date as of which a payment of the subject year’s Basic Salary deferred amount is to be made under the foregoing provisions of this subsection 7.1(a), then such portion of the subject year’s Basic Salary deferred amount shall be paid as of the date as of which such portion is credited under the terms of the Plan to the Participant’s Account.  
(b)    Subsequent Distribution Elections as to Commencement Date and Form of Payment.  
(1)    If the Participant previously has elected under subsection 7.1(a) hereof to have any portion of his or her Account that is attributable to the amount of his or her Basic Salary that is earned in one or more specific Plan Years and the receipt of which has been deferred by the Participant under the Plan paid under Payment Method 1, he or she may, by completing a subsequent payment agreement and filing such agreement with a Plan representative not less than twelve months before the date on which he or she separates from service with the Company, elect to have Payment Method 1 be deemed for purposes of the Participant to be a payment method under which the entire portion of the Participant’s Account that is payable under Payment Method 1: 
(A)     commences to be paid as of the first day of the first March that begins after the end of the Plan Year in which occurs the fifth anniversary of the date on which the Participant separates from service with the Company; and 
(B)    is paid in annual payments over two to fifteen years (as chosen by the Participant when he or she elects to change the payment method represented as Payment Method 1).  
However, such new election shall not become effective until at least twelve months elapse from the filing of such election with the Committee (and thus will be ineffective should the date on which the Participant separates from service with the Company occur prior to the expiration of such twelve month period).
(2)    If the Participant previously has elected under subsection 7.1(a) hereof to have any portion of his or her Account that is attributable to the amount of his or her Basic Salary that is earned in one or more specific Plan Years and the receipt of which has been deferred by the Participant under the Plan paid under Payment Method 2, he or she may, by completing a subsequent payment agreement and filing such agreement with a Plan representative not less than twelve months before the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company, elect to have Payment Method 2 be deemed for purposes of the Participant to be a payment method under which the entire portion of the Participant’s Account that is payable under Payment Method 2: 
(A)     commences to be paid as of the first day of the first March that begins after the end of the Plan Year in which occurs the fifth anniversary of the date on which the Participant separates from service with the Company; and 
(B)    is paid in one lump sum payment or in annual payments over two to fifteen years (as chosen by the Participant when he or she elects to change the payment method represented 

as Payment Method 2), provided that the number of annual payments to be made under the changed Payment Method 2 is different than the number of annual payments that were to be made under Payment Method 2 as in effect for the Participant before the change.  
However, such new election shall not become effective until at least twelve months elapse from the filing of such election with the Committee (and thus will be ineffective should the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company occur prior to the expiration of such twelve month period).
(3)    If the Participant previously has elected under subsection 7.1(a) hereof to have any portion of his or her Account that is attributable to the amount of his or her Basic Salary that is earned in one or more specific Plan Years and the receipt of which has been deferred by the Participant under the Plan paid under Payment Method 3, he or she may, by completing a subsequent payment agreement and filing such agreement with a Plan representative not less than twelve months before an applicable Payment Method 3 initial fixed commencement date, elect to have Payment Method 3 be deemed, for purposes of the entire portion of the Participant’s Account that is subject to such Payment Method 3 initial fixed commencement date, to be a payment method under which such portion:
(A)    commences to be paid as of the earlier of (i) the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company (or, if the Participant is, on the date on which the Participant separates from service with the Company, a Specified Employee, the later of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company or the date immediately following the date which is six months after the date he or she separates from service with the Company) or (ii) any fixed date that is specified by the Participant in his or her new election under this subsection 7.1(b)(3) and that is no earlier than the first day of the first March that occurs on or after the fifth annual anniversary of the applicable Payment Method 3 initial fixed commencement date; and
(B)    is paid in one lump sum payment or in annual payments over two to five years (as chosen by the Participant when he or she elects to change the payment method represented as Payment Method 3 with respect to the portion of the Participant’s Account that is subject to the applicable Payment Method 3 initial fixed commencement date).
However, such new election shall not become effective until at least twelve months elapse from the filing of such election with the Committee (and thus will be ineffective should the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company occur prior to the expiration of such twelve month period).
7.2    General Distribution Rules for Deferred Incentive Award Payment.  Subject to the following provisions of this section 7 and the other provisions of the Plan, this subsection 7.2 concerns the rules for payment of the portion of the Account of a Participant that is attributable to the amount of his or her Incentive Award Payment that is otherwise payable to the Participant for services performed in the Fiscal Year that begins within any specific Plan Year but the receipt of which has been deferred by the Participant under the Plan (for purposes of this subsection 7.2, the “subject year’s Incentive Award Payment deferred amount”).  Payment of the subject year’s Incentive Award Payment deferred amount shall be determined pursuant to the provisions of subsection 7.1 hereof in their entirety, except that each reference to “Basic Salary” contained in subsection 7.1 hereof (including each such reference that is part of a quoted phrase) shall for purposes of this subsection 7.2 be deemed to be a reference to “Incentive Award Payment.” 

7.3    General Distribution Rules for Company Match Amounts.  Subject to the following provisions of this section 7 and the other provisions of the Plan, this subsection 7.3 concerns the rules for payment of the vested portion of the Account of a Participant that is attributable to the amount of the Company match amount that is credited to such Account for any specific Plan Year (for purposes of subsection 7.3 hereof, the “subject year’s Company match deferred amount”).

(a)    Initial 2014 Distribution Payment Method.
(1)    When the Plan Year that begins on the Effective Date is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, subject to the provisions of subsections 7.3(a)(2) and (3) and 7.3(c) hereof and the subsections of section 7 hereof that follow this subsection 7.3 and to such administrative rules as the Committee may prescribe, the portion of the Participant’s vested Account that is attributable to the subject year’s Company match deferred amount shall be paid in accordance with the payment method described in this subsection 7.3(a)(1) (for purposes of this subsection 7.3, the “2014 Payment Method”).  Under the 2014 Payment Method, such portion of the Participant’s vested Account shall: 
(A)    commence to be paid as of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company (or, if the Participant is, on the date on which the Participant separates from service with the Company, a Specified Employee, the later of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company or the date immediately following the date which is six months after the date he or she separates from service with the Company); and 
(B)    be paid in one lump sum payment or in annual payments over two to fifteen years, as chosen by the Participant by completing a payment agreement and filing such agreement with a Plan representative before the start of the Plan Year that begins on the Effective Date.  In the event the Participant fails to complete or file such a payment agreement before the start of such Plan Year, then he or she shall be deemed for all purposes of this subsection 7.3(a)(1) to have chosen under the 2014 Payment Method that payment will be made in one lump sum payment.
(2)    When the Plan Year that begins on the Effective Date is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, if the Participant elects to receive the portion of the Participant’s vested Account that is attributable to the subject year’s Company match deferred amount in annual installments of two or more payments (under the 2014 Payment Method), then (i) the date as of which the first annual installment payment is to be made shall be determined under the provisions of subsection 7.3(a)(1)(A) hereof, (ii) the date as of which any annual installment payment other than the first annual installment payment is to be made shall be an annual anniversary of the date as of which the first annual installment payment is to be made, and (iii) the amount of each installment payment shall be equal to the quotient obtained by dividing the amount allocated to the portion of the Participant’s vested Account that is attributable to the subject year’s Company match deferred amount as of the date of such installment payment by the number of installment payments still to be made to the Participant under the applicable payment method (including the subject installment payment).
(3)    When the Plan Year that begins on the Effective Date is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, notwithstanding any of the foregoing provisions of this subsection 7.3(a), if any portion of the subject year’s Company match deferred amount is credited under the terms of the Plan to the Participant’s Account as of a date that is later than the latest date as of which a payment of such portion would otherwise be made under the foregoing provisions of this subsection 7.3(a) and the Participant is vested in such portion, such 

portion shall be paid as of the date as of which such portion is credited under the terms of the Plan to the Participant’s Account.
(b)    Initial Post-2014 Distribution Payment Method.  
(1)    When a Plan Year that begins on or after January 1, 2015 is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, subject to the provisions of subsections 7.3(b)(2), (3), and (4) and 7.3(c) hereof and the subsections of section 7 hereof that follow this subsection 7.3 and to such administrative rules as the Committee may prescribe, the Participant may, by completing a payment agreement and filing such agreement with a Plan representative before the start of the Plan Year for which the subject year’s Company match deferred amount is credited to his or her Account under the Plan, elect that the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount shall be paid by either of the two payment methods described in subsection 7.3(b)(1)(A) and (B) hereof.  
(A)    Payment Method 1 - Under the payment method described in this subsection 7.3(b)(1)(A) (for purposes of this subsection 7.3, “Payment Method 1”), the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount shall be paid in one lump sum payment as of the date on which the Participant separates from service with the Company (or, if the Participant is, on the date on which the Participant separates from service with the Company, a Specified Employee, as of the date immediately following the date which is six months after the date he or she separates from service with the Company).
(B)    Payment Method 2 - Under the payment method described in this subsection 7.3(b)(1)(B) (for purposes of this subsection 7.3, “Payment Method 2”), the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount shall: 
(x)    commence to be paid as of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company (or, if the Participant is, on the date on which the Participant separates from service with the Company, a Specified Employee, the later of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company or the date immediately following the date which is six months after the date he or she separates from service with the Company); and 
(y)    be paid in one lump sum payment or in annual payments over two to fifteen years, as chosen by the Participant when he or she elects (or under subsection 7.3(b)(2)(C) hereof is deemed to elect) Payment Method 2 to apply to the portion of his or her Account that is attributable to the amount of the Participant’s Company match deferred amount that was credited to the Participant’s Account for any Plan Year that began on or after January 1, 2015.
(2)    When a Plan Year that begins on or after January 1, 2015 is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, notwithstanding any of the provisions of subsection 7.3(b)(1) hereof but subject to the provisions of subsection 7.3(c) hereof and the subsections of section 7 hereof that follow this subsection 7.3, the following payment method election restrictions or conditions shall apply to the payment of the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount.
(A)    When a Plan Year that begins on or after January 1, 2016 is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then the Participant may not elect Payment Method 1 for payment of the portion of the 

Participant’s Account that is attributable to the subject year’s Company match deferred amount if he or she has elected (or under subsection 7.3(b)(2)(C) hereof has been deemed to have elected) Payment Method 2 for payment of the portion of the Participant’s Account that is attributable to the amount of the Participant’s Company match amount that was credited to the Participant’s Account for any Plan Year that both began on or after January 1, 2015 and was earlier than the Plan Year with respect to which the subject year’s Company match deferred amount is credited to the Participant’s Account.  
(B)    When a Plan Year that begins on or after January 1, 2016 is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then the Participant may not elect Payment Method 2 for payment of the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount if he or she has elected Payment Method 1 for payment of the portion of the Participant’s Account that is attributable to the amount of the Participant’s Company match amount that was credited to the Participant’s Account for any Plan Year that both began on or after January 1, 2015 and was earlier than the Plan Year with respect to which the subject year’s Company match deferred amount is credited to the Participant’s Account.
(C)    When the Plan Year that begins on January 1, 2015 is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, in the event the Participant fails in the applicable payment agreement to make any payment method election at all for payment of the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount, he or she shall be deemed for all purposes of this subsection 7.3 to have elected Payment Method 2 (and to have chosen under such method that payment will be made in one lump sum payment) for payment of the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount.   
(D)    When a Plan Year that begins on or after January 1, 2016 is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, in the event the Participant fails in the applicable payment agreement to make any payment method election at all for payment of the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount and he or she has never elected (or under subsection 7.3(b)(2)(C) hereof been deemed to have elected) a distribution method with respect to a Company match amount credited to his or her Account under the Plan for any Plan Year that both began on or after January 1, 2015 and was earlier than the Plan Year with respect to which the subject year’s Company match deferred amount is credited to the Participant’s Account, he or she shall be deemed for all purposes of this subsection 7.3 to have elected Payment Method 2 (and to have chosen under such method that payment will be made in one lump sum payment) for payment of the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount.
(E)    When a Plan Year that begins on or after January 1, 2016 is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, in the event the Participant fails in the applicable payment agreement to make any payment method election at all for payment of the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount and he or she has elected (or under subsection 7.3(b)(2)(C) hereof has been deemed to have elected) either Payment Method 1 or Payment Method 2 for payment of the portion of the Participant’s Account that is attributable to a Company match amount that was credited to the Participant’s Account for any Plan Year that both began on or after January 1, 2015 and was earlier than the Plan Year with respect to which the subject year’s Company match deferred amount is credited to the Participant’s Account, he or she shall be deemed for all purposes of this subsection 7.3 to have elected the same payment method for payment of the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount.  

(3)    When a Plan Year that begins on or after January 1, 2015 is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, if the Participant elects to receive the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount in annual installments of two or more payments (under any applicable payment method), then (i) the date as of which the first annual installment payment is to be made shall be determined under the provisions of subsection 7.3(b)(1) hereof that describe such payment method, (ii) the date as of which any annual installment payment other than the first annual installment payment is to be made shall be an annual anniversary of the date as of which the first annual installment payment is to be made, and (iii) the amount of each installment payment shall be equal to the quotient obtained by dividing the amount allocated to the portion of the Participant’s Account that is attributable to the subject year’s Company match deferred amount as of the date of such installment payment by the number of installment payments still to be made to the Participant under the applicable payment method (including the subject installment payment).
(4)    When a Plan Year that begins on or after January 1, 2015 is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, notwithstanding any of the foregoing provisions of this subsection 7.3(b), if any portion of the subject year’s Company match deferred amount is credited under the terms of the Plan to the Participant’s Account as of a date that is later than the latest date as of which a payment of such portion would otherwise be made under the foregoing provisions of this subsection 7.3(b) and the Participant is vested in such portion, such portion shall be paid as of the date as of which such portion is credited under the terms of the Plan to the Participant’s Account.  
(c)    Subsequent Distribution Elections as to Commencement Date and Form of Payment.  
(1)    If any portion of the Participant’s Account is attributable to the amount of a Company match amount that is credited to his or her Account under the Plan for the Plan Year that begins on the Effective Date and hence, pursuant to the provisions of subsection 7.3(a) hereof, paid under the 2014 Payment Method, the Participant may, by completing a subsequent payment agreement and filing such agreement with a Plan representative not less than twelve months before the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company, elect to have the 2014 Payment Method be deemed for purposes of the Participant to be a payment method under which the entire portion of the Participant’s Account that is payable under the 2014 Payment Method: 
(A)     commences to be paid as of the first day of the first March that begins after the end of the Plan Year in which occurs the fifth anniversary of the date on which the Participant separates from service with the Company; and 
(B)    is paid in one lump sum payment or in annual payments over two to fifteen years (as chosen by the Participant when he or she elects to change the payment method represented as the 2014 Payment Method), provided that the number of annual payments to be made under the changed 2014 Payment Method is different than the number of annual payments that were to be made under 2014 Payment Method as in effect for the Participant before the change.  
However, such new election shall not become effective until at least twelve months elapse from the filing of such election with the Committee (and thus will be ineffective should the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company occur prior to the expiration of such twelve month period).

(2)    If the Participant previously has elected under subsection 7.3(b) hereof to have any portion of his or her Account that is attributable to the amount of his or her Company match amount that is credited to his or her Account under the Plan for one or more specific Plan Years that begin on or after January 1, 2015 paid under Payment Method 1, he or she may, by completing a subsequent payment agreement and filing such agreement with a Plan representative not less than twelve months before the date on which he or she separates from service with the Company, elect to have Payment Method 1 be deemed for purposes of the Participant to be a payment method under which the entire portion of the Participant’s Account that is payable under Payment Method 1: 
(A)    commences to be paid as of the first day of the first March that begins after the end of the Plan Year in which occurs the fifth anniversary of the date on which the Participant separates from service with the Company; and 
(B)    is paid in annual payments over two to fifteen years (as chosen by the Participant when he or she elects to change the payment method represented as Payment Method 1).  
However, such new election shall not become effective until at least twelve months elapse from the filing of such election with the Committee (and thus will be ineffective should the date on which the Participant separates from service with the Company occur prior to the expiration of such twelve month period).
(3)    If the Participant previously has elected (or been deemed to have elected) under subsection 7.3(b) hereof to have any portion of his or her Account that is attributable to the amount of his or her Company match amount that is credited to his or her Account under the Plan for one or more specific Plan Years that begin on or after January 1, 2015 paid under Payment Method 2, he or she may, by completing a subsequent payment agreement and filing such agreement with a Plan representative not less than twelve months before the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company, elect to have Payment Method 2 be deemed for purposes of the Participant to be a payment method under which the entire portion of the Participant’s Account that is payable under Payment Method 2: 
(A)    commences to be paid as of the first day of the first March that begins after the end of the Plan Year in which occurs the fifth anniversary of the date on which the Participant separates from service with the Company; and 
(B)    is paid in one lump sum payment or in annual payments over two to fifteen years (as chosen by the Participant when he or she elects to change the payment method represented as Payment Method 2), provided that the number of annual payments to be made under the changed Payment Method 2 is different than the number of annual payments that were to be made under Payment Method 2 as in effect for the Participant before the change.  
However, such new election shall not become effective until at least twelve months elapse from the filing of such election with the Committee (and thus will be ineffective should the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company occur prior to the expiration of such twelve month period).    
(d)     Mid-Year Entry Distribution Payment Method.  
(1)    Notwithstanding the foregoing provisions of this subsection 7.3 or any other provision of the Plan, with respect to a Participant who becomes newly eligible to participate in the Plan as of the first day of a calendar quarter that falls in a Plan Year under the provisions of subsection 3.2 hereof 

(without regard to subsection 3.2(c) hereof) and when such Plan Year begins on or after January 1, 2015 and is the Plan Year for which the subject year’s Company match deferred amount is credited to the Participant’s Account under the Plan, then, the subject year’s Company match deferred amount shall be paid in one lump sum payment as of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company (or, if the Participant is, on the date on which the Participant separates from service with the Company, a Specified Employee, the later of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company or the date immediately following the date which is six months after the date he or she separates from service with the Company).  The Participant may not make any subsequent change to the distribution method provided for in the immediately preceding sentence and such distribution method has no effect on the distribution rules that apply under the foregoing provisions of this subsection 7.3 to the vested portion of the Account of the Participant that is attributable to the amount of the Company match amount that is credited to his or her Account for any other Plan Year.   
(2)    Notwithstanding the foregoing provisions of this subsection 7.3(d) or any other provision of the Plan, if any portion of the subject year’s Company match deferred amount is credited under the terms of the Plan to the Participant’s Account as of a date that is later than the date as of which a payment of such portion would otherwise be made under the foregoing provisions of this subsection 7.3(d) and the Participant is vested in such portion, such portion shall be paid as of the date as of which such portion is credited under the terms of the Plan to the Participant’s Account.
7.4    Accelerated Distribution.  The time or schedule of any payment due under the Plan shall not be accelerated excepted as permitted in regulations and administrative guidance issued under Section 409A of the Code.  Consistent with the immediately preceding sentence, the following paragraphs of this subsection 7.4 apply to the distribution of certain small balances under the Plan.
(a)    Accelerated Distribution of Small Amounts.  Notwithstanding the provisions of subsections 7.1, 7.2, and 7.3 hereof, if the vested balance of the Participant’s entire Account is less than $15,000 as of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company (or, if the Participant is, on the date on which the Participant separates from service with the Company, a Specified Employee, the later of the first day of the first March that begins after the end of the Plan Year in which the Participant separates from service with the Company or the date immediately following the date which is six months after the date he or she separates from service with the Company), then the vested balance of the Participant’s entire interest in the Plan shall be paid in one lump sum payment made as of such date and the Participant’s interest in the Plan shall thereupon be completely ended.
(b)    Limited Cashouts Permitted. Notwithstanding any other provision of this Section 7, the Company may elect, in its sole discretion and without the Participant's consent (or the consent of the Participant’s Beneficiary, if applicable), to cash-out the balance of a Participant’s subaccounts in accordance with the provisions of this subsection 7.4(b).
(1)    Cash-out of Deferred Basic Salary and Incentive Award Payment Portion of Account.  The Company may elect, in its sole discretion and without the Participant’s consent (or the consent of the Participant’s Beneficiary, if applicable), to pay the portion of a Participant’s Account that is attributable to deferred Basic Salary and Incentive Award Payments in one lump sum at any time so long as (a) the Company’s exercise of discretion to cash-out such amount is evidenced in writing no later than the date of such payment; (b) the payment results in the termination and liquidation of (i) the Participant’s entire interest 

in the Plan relating to Basic Salary and Incentive Award Payments and (ii)  all other amounts deferred under any under other plans or arrangements and required to be aggregated with such amounts under Treasury Regulation Section 1.409A-1(c)(2); (c) the payment does not exceed the applicable dollar amount under Code Section 402(g)(1)(B); and (d) the payment does not violate the provisions of subparagraph (3) below.
(2)    Cash-out of Company Match Portion of Account.  The Company may elect, in its sole discretion and without the Participant’s consent (or the consent of the Participant’s Beneficiary, if applicable), to pay the vested portion of a Participant’s Account that is attributable to Company match amounts in one lump sum at any time so long as (a) the Company’s exercise of discretion to cash-out such amount is evidenced in writing no later than the date of such payment; (b) the payment results in the termination and liquidation of (i) the Participant’s entire interest in the Plan relating to Company match amounts and (ii) all other amounts deferred under any under other plans or arrangements and required to be aggregated with such Company amounts under Treasury Regulation Section 1.409A-1(c)(2); (c) the payment does not exceed the applicable dollar amount under Code Section 402(g)(1)(B); and (d) the payment does not violate the provisions of subparagraph (3) below.
(3)    Application of Cashout Rules to Specified Employees.  Notwithstanding subparagraphs (1) and (2) of this subsection 7.4(b), if a Participant separates from service with the Company and is a Specified Employee on his or her date of separation from service, no accelerated payment shall be made under this subsection 7.4(b) to such Participant during the period beginning on his or her date of separation from service and ending on the date that is six months after such date of separation from service, except as permitted under Treasury Regulation Section 1.409A-3(i)(2).  
7.5    Specified Employees.  
(a)    General Rules for Specified Employee Determinations.  For purposes of the provisions of subsections 7.1, 7.2, 7.3, and 7.4 hereof and all other provisions of the Plan, a Participant shall be deemed to be a “Specified Employee” on each and any day that occurs during any twelve month period that begins on an April 1 and ends on the next following March 31 (for purposes of this subsection 7.5, the “subject period”) if, and only if, (i) on any day that occurs in the twelve month period (for purposes of this subsection 7.5, the “identification period”) that ends on the latest Identification Date that precedes the start of the subject period any corporation or organization that is then an Employer or Affiliate has stock which is publicly traded on an established securities market (within the meaning of Section 1.897-1(m) of the Treasury Regulations) or otherwise and (ii) the Participant meets either the criteria set forth in subsection 7.5(a)(1) hereof or the criteria set forth in subsection 7.5(a)(2) hereof.
(1)    The criteria under this subsection 7.5(a)(1) demands that the Participant both (i) is an officer of any Employer or Affiliate on any day that occurs in the identification period and (ii) he or she receives during the identification period an aggregate amount of Compensation from the Employers and Affiliates greater than $130,000 (as adjusted under Section 416(i) of the Code).  For this purpose and in accordance with the terms of Code Section 416(i) and the Treasury Regulations issued under Section 416 of the Code, no more than 50 employees (or, if less, the greater of three employees or 10% of the employees) of all of the Employers and Affiliates shall be treated as officers.
(2)    The criteria under this subsection 7.5(a)(2) demands that the Participant either: (i) is a 5% or more owner of any Employer or Affiliate on any day that occurs in the identification period; or (ii) both is a 1% or more owner of any Employer or Affiliate on any day that occurs in the identification period and receives during the identification period an aggregate amount of Compensation from the Employers and Affiliates greater than $150,000.  For purposes of this subsection 7.5(a)(2), a Participant is 

considered to own 5% or 1%, as the case may be, of any Employer or Affiliate if he or she owns (or is considered as owning within the meaning of Code Section 318, except that subparagraph (C) of Code Section 318(a)(2) shall be applied by substituting “5%” for “50%”) at least 5% or 1%, as the case may be, of either the outstanding stock or the voting power of all stock of the Employer or Affiliate (or, if the Employer or Affiliate is not a corporation, at least 5% or 1%, as the case may be, of the capital or profits interest in the Employer or Affiliate).
(b)    Definitions of Terms Used in Specified Employee Determinations.  For purposes of this subsection 7.5, the following terms of this subsection 7.5(b) shall have the meanings hereinafter set forth.
(1)    “Affiliate” means: (i) any member of an affiliated service group, within the meaning of Section 414(m) of the Code, which includes an Employer; and (ii) each other entity required to be aggregated with an Employer under Section 414(o) of the Code.
(2)    “Compensation” means, with respect to any Participant and for any specified period, the Participant’s compensation for such period that is received from the Employers and the Affiliates considered collectively and that is determined under Section 1.415(c)-(2)(a) of the Treasury Regulations, applied as if the Participant were not using any safe harbor provided in Section 1.415(c)-2(d) of the Treasury Regulations, were not using any of the special timing rules of Section 1.415(c)-2(e) of the Treasury Regulations, and were not using any of the special rules provided in Section 1.415(c)-2(g) of the Treasury Regulations. 
(3)    “Identification Date” means December 31.  In this regard, Macy’s has elected that December 31 serve as the identification date for purposes of determining Specified Employees in accordance with the provisions of Section 1.409A-1(i) of the Treasury Regulations.
7.6    Special In-Service Distribution for Unforeseeable Emergency.  Notwithstanding any other provision of the Plan, a Participant may, by filing an appropriate form with the Committee, elect to have any portion of the amounts then allocated to his or her Account under the Plan distributed to him or her as of any date (for purposes of this subsection 7.6, the “payment date”) that occurs after such election is filed with the Committee because of an unforeseeable emergency, even if the payment date precedes the date as of which such portion of his or her Account would otherwise be paid under the foregoing provisions of this section 7.  A Participant may also, by filing an appropriate form with the Committee, elect, because of an unforeseeable emergency, to cancel and void in its entirety any election that he or she has in effect under the provisions of subsection 4.1 hereof to defer the receipt of any amount of Basic Salary or Incentive Award Payment that has not yet as of the payment date become payable and free of any substantial risk of forfeiture, and any such election shall be considered a request for a distribution for purposes of this subsection 7.6 that is made on the first date any such compensation has become payable and free of any substantial risk of forfeiture.
(a)    Conditions For Approval of Unforeseeable Emergency Distribution Request.  Any distribution requested under this subsection 7.6 because of an unforeseeable emergency shall be granted by the Committee if, and only if, the Committee determines that the requested distribution meets all of the requirements set forth in subsection 7.6(b) and (c) hereof.
(b)    Unforeseeable Emergency Reason Requirements for Distribution.  Any distribution which is requested by a Participant under this subsection 7.6 because of an unforeseeable emergency must be requested by the Participant and certified by him or her to be on account of the Participant’s severe financial hardship resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in Section 152 of the Code, without regard to Code Section 152(b)(1), (b)(2), and (d)(1)(B)) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable 

circumstances as a result of events beyond the control of the Participant.  The need to pay for the funeral expenses of a spouse or dependent (as defined in Section 152 of the Code, without regard to Code Section 152(b)(1), (b)(2), and (d)(1)(B)) of the Participant may also constitute an unforeseeable emergency for purposes of this subsection 7.6.  Written documentation of the reason for requesting the distribution shall be required.  Whether a distribution is requested on account of an unforeseeable emergency shall be determined by the Committee on the basis of all facts and circumstances.  In no event shall an unforeseeable emergency for purposes of this subsection 7.6 be deemed to exist for any reason that would not constitute an unforeseeable emergency under the provisions of Section 1.409A-3(i)(3) of the Treasury Regulations.
(c)    Financial Need Requirements for Distribution.  Any distribution which is requested by a Participant under this subsection 7.6 because of an unforeseeable emergency must also be necessary to satisfy the need for the distribution.  A distribution shall be deemed necessary to satisfy such need if, and only if, the conditions set forth in subsection 7.6(c)(1) and (2) hereof, and any other conditions imposed by the Committee in its discretion, are met.
(1)    The Participant certifies and provides written evidence that the distribution is not in excess of the amount of the financial need of the Participant which has caused the Participant to request the distribution (taking into account, if applicable, any additional compensation that will become payable to the Participant by his or her canceling deferral elections under this Plan in accordance with the second sentence of this subsection 7.6).  The amount of financial need of the Participant may include an amount permitted by the Committee to cover federal, state, local, or foreign taxes which can reasonably be anticipated to result to the Participant from the distribution.
(2)    The Participant certifies and provides written evidence (including, when applicable, a financial statement) that he or she cannot relieve his or her need for the distribution through reimbursement or compensation by insurance or otherwise, by liquidation of the Participant’s assets, or by cessation of deferrals under this Plan and other deferred compensation plans of the Company.  For purposes hereof, the Participant’s assets are deemed to include those assets of the Participant’s spouse and minor children that are reasonably available to the Participant.
(d)    Limitation Applicable to Specified Employees.  Notwithstanding any of the foregoing provisions of this subsection 7.6, if (i) a Participant elects a distribution under this subsection 7.6 by reason of an unforeseeable emergency, (ii) the date on which the Participant separates from service with the Company precedes the date on which he or she makes such unforeseeable emergency distribution election under this subsection 7.6, (iii) the Participant is a Specified Employee on such separation from service date (as determined under the provisions of subsection 7.5 hereof), and (iv) the Participant elects a payment date under this subsection 7.6 that is earlier than the date immediately following the date which is six months after such separation from service date, then the Participant shall be deemed to have elected that such payment date shall be the date immediately following the date which is six months after such separation from service date.
7.7    Plan Payments Upon Participant’s Death.  
(a)    General Rules for Payments Upon Participant’s Death.  If, with respect to any portion of a Participant’s Account, the Participant dies before the complete payment of the Participant’s Account (whether the Participant’s death occurs before any amounts allocated to such Account portion have begun to be paid under subsection 7.1, 7.2, or 7.3 hereof or on or after the date as of which any amounts allocated to such Account portion have begun to be paid under subsection 7.1, 7.2, or 7.3 hereof), then the Company shall make to the Participant’s Beneficiary all payments of the amounts allocated to such Account portion that would have been paid to the Participant after his or her death under the other provisions of subsections 

7.1, 7.2, and 7.3 hereof had he or she not died (but had separated from service with the Company no later than his or her date of death) and at the same times and on the same schedules that would have applied had the Participant not died.  
(b)    Credits After Participant’s Death.  Notwithstanding any of the foregoing provisions of this subsection 7.7, if any amount is credited to a Participant’s Account under the terms of the Plan as of a date that is both after the Participant’s death and after the latest date as of which a payment of the Participant’s Account is to be made under the foregoing provisions of this subsection 7.7, then, in the event the Participant is vested in the portion of his or her Account that reflects such amount, such amount shall be paid to the Participant’s Beneficiary as of the date as of which such amount is credited under the terms of the Plan to the Participant’s Account.
7.8    Cash Form of Payment.  Any payment made under the Plan to a Participant (or a Participant’s Beneficiary) shall be made in cash.
7.9    Distributions for Payment of Taxes.
(a)    Distribution for FICA and Related Income Taxes.  
(1)    Notwithstanding any other provision of the Plan, the Company shall have the right (without notice to or approval by a Participant, his or her Beneficiary, or any other person) to pay the Federal Insurance Contributions Act (for purposes of this subsection 7.9(a), “FICA”) tax imposed under Code Sections 3101, 3121(a), and 3121(v)(2) on compensation deferred under the Plan with respect to the Participant (for purposes of this subsection 7.9(a), the “FICA amount”), plus (i) any income tax at source on wages imposed under Code Section 3401 or the corresponding withholding provisions of applicable state, local, or foreign tax laws as a result of the payment of the FICA amount and (ii) any additional income tax at source on wages attributable to the pyramiding Code Section 3401 wages and taxes, from the compensation deferred under the Plan with respect to the Participant (or from any amounts otherwise payable by the Company to or on account of the Participant).
(2)    However, notwithstanding the foregoing, the total payment that is taken under the provisions of this subsection 7.9(a) from the compensation deferred under the Plan for the Participant must not exceed the aggregate of the FICA amount and the income tax withholding related to the FICA amount.
(3)    Also, to the extent payments made in accordance with the provisions of this subsection 7.9(a) are satisfied from the compensation deferred under the Plan for the Participant, then the balance in the Participant’s Account shall immediately be reduced by the amount of such payments and the amount of such payments shall be deemed a distribution to the Participant, his or her Beneficiary, or such other person, as the case may be.
(b)    Distributions for Benefit Payment Tax Withholding Requirements.  Also notwithstanding any other provision of the Plan, the Company shall have the right (without notice to or approval by a Participant, his or her Beneficiary, or any other person) to withhold from any amounts otherwise payable by the Company to or on account of the Participant, or from any payment otherwise then being made by the Company to the Participant, his or her Beneficiary, or any other person by reason of the Plan, an amount which the Company determines is sufficient to satisfy all federal, state, local, and foreign tax withholding requirements that may apply with respect to such benefit payment made under the Plan.  To the extent such tax withholding requirements are satisfied from any payment otherwise then being made by the Company to the Participant, his or her Beneficiary, or any other person by reason of the Plan, the amount so 

withheld shall be deemed a distribution to the Participant, his or her Beneficiary, or such other person, as the case may be.
7.10    Administrative Period To Make Payments.  
(1)    The other provisions of this section 7 provide that any payment that is made under the Plan shall occur “as of” a specific date and sometimes refer to such a date as a “commencement date” or a “payment date.”  
(2)    However, in accordance with the provisions of Section 1.409A-3(d) of the Treasury Regulations and in order to permit a reasonable administrative period for the Company to make payments required under the Plan, and notwithstanding any other provision of this section 7 or any other provision of the Plan, any payment that is made under the Plan to or with respect to a Participant may be made (and shall still be deemed to have been made as of the specific date as of which it is to be paid under the other provisions of the Plan as long as it is made) within the 60 consecutive day period that begins on such specified date.  The Company alone shall have the discretion to determine, within such 60 day period, the date as of which the payment is actually made.
7.11    Employer To Make Payment.  Any payment with respect to a Participant’s Account shall be the liability of and made by each Employer to the extent that such payment is attributable to the credits made under section 4 hereof that relate to or arise from service of the Participant as an Employee for that entity.  The determination of any Employer’s liability for any benefit payment under the Plan to a Participant shall be made by the Committee.
7.12    Facility of Payment.  Any amounts payable hereunder to any person who is under legal disability or who, in the judgment of the Committee, is unable to properly manage the person’s financial affairs may be paid to the legal representative of such person or may be applied for the benefit of such person in any manner which the Committee may select, and any such payment shall be deemed to be payment for such person’s account and shall be a complete discharge of all liability of the applicable Employer with respect to the amount so paid.
7.13    Deduction of Payments From Account.  Any payment, including an annual installment payment, of any portion of a Participant’s Account under the provisions of the Plan shall be charged, as of the date such payment is deemed to be made under the other provisions of this Plan, to such Account portion (or, in other words, deducted from the amounts then allocated to such Account portion).  Except as is otherwise provided under administrative policies adopted by the Committee, any such payment shall be charged among all of the types of assumed investments applicable to such Account portion, on a pro rata basis.
SECTION 8
ADDITIONAL MAINTENANCE OF ACCOUNT RULES
8.1    Valuation.  The balance of the Account of a Participant shall be determined periodically (under procedures adopted by the Committee) to reflect all amounts credited to the Account under the provisions of section 4 hereof since the latest preceding date on which the Account balance was determined, any assumed net investment gains and losses in the value of the Account’s assumed investments under the provisions of section 5 hereof since the latest date on which the Account balance was determined, and any forfeitures or payments under the provisions of sections 6 and 7 hereof since the latest preceding date on which the Account balance was determined.

8.2    Account Statements.  As soon as practical following the end of each Plan Year, each Participant (or, in the event of his or her death, his or her Beneficiary) shall be furnished a statement as of the last day of such Plan Year showing the balance of the Participant’s Account, the total increases and reductions made in the balance of such Account during such Plan Year, and, if amounts allocated to such Account are assumed to have been invested in securities, a description of such securities including the number of shares assumed to have been purchased by the amounts allocated to such Account.
8.3    Account Balance.  For purposes of the Plan, the amounts allocated to the Account of a Participant (i.e., the balance of such Account) at any specific time shall be deemed to be the net sum of amounts credited, charged, or otherwise allocated to such Account at such time under the other provisions of the Plan.
8.4    Cancellation of Account.  The Account of a Participant shall be cancelled, and the amount then allocated to such Account shall be reduced to zero, on the date as of which the entire amount allocated to the Account at such time is deemed to be paid to the Participant (or his or her Beneficiary under this Plan) and/or forfeited under the other provisions of the Plan.
SECTION 9
ADMINISTRATION OF PLAN
9.1    Administrator of Plan.  Macy’s shall be the administrator of the Plan.  However, the Plan shall be administered on behalf of Macy’s by the Committee.  The Committee shall be the Pension and Profit Sharing Committee of Macy’s, unless and until the Board appoints a different committee to administer the Plan.
9.2    Powers of Committee.  The Committee, in connection with administering the Plan, is authorized to make such rules and regulations as it may deem necessary to carry out the provisions of the Plan and is given complete discretionary authority to determine any person’s eligibility for benefits under the Plan, to construe the terms of the Plan, and to decide any other matters pertaining to the Plan’s administration.  The Committee shall determine any question arising in the administration, interpretation, and application of the Plan, which determination shall be binding and conclusive on all persons (subject only to the claims and appeal procedure provisions of subsection 9.7 hereof).  The Committee may correct errors, however arising, and, as far as possible, adjust any benefit payments accordingly.
9.3    Actions of Committee.
(a)    Manner of Acting as Committee.  The Committee shall act by a majority of its members at the time in office, and any such action may be taken either by a vote at a meeting or in writing without a meeting.  The Committee may by such majority action authorize any one or more of its members or any agent of it to execute any document or documents or to take any other action, including the exercise of discretion, on behalf of the Committee.
(b)    Appointment of Agents.  The Committee may appoint or employ such counsel, auditors, physicians, clerical help, actuaries, and/or any other agents as in the Committee’s judgment may seem reasonable or necessary for the proper administration of the Plan, and any agent it so employs may carry out any of the responsibilities of the Committee that are delegated to him or her with the same effect as if the Committee had acted directly.  The Committee may provide for the allocation of responsibilities for the operation of the Plan.

(c)    Conflict of Interest of Committee Member.  Any member of the Committee who is also a Participant in the Plan shall not participate in any meeting, discussion, or action of the Committee that specifically concerns his or her own situation.
9.4    Compensation of Committee and Payment of Administrative Expenses.  The members of the Committee shall not receive any extra or special compensation for serving as the administrative committee with respect to the Plan and, except as required by law, no bond or other security need be required of them in such capacity in any jurisdiction.  All expenses of the administration of the Plan shall be paid by the Company.
9.5    Limits on Liability.  The Company shall hold each member of the Committee harmless from any and all claims, losses, damages, expenses, and liabilities arising from any act or omission of the member under or relating to the Plan, other than any expenses or liabilities resulting from the member’s own gross negligence or willful misconduct.  The foregoing right of indemnification shall be in addition to any other rights to which the members of the Committee may be entitled as a matter of law.
9.6    Methods for Making Deferral or Other Agreement.  The Committee may adopt procedures so that any deferral or other agreement that may be entered into by a Participant under the Plan may be made through (i) a written form prepared or approved for this purpose by the Committee and filed with a Plan representative, (ii) a communication to a Plan representative under a telephonic or electronic system approved by the Committee, or (iii) under any other method approved by the Committee, with the specific method or methods to be used to be chosen in its discretion by the Committee.  The Committee may choose different methods to apply to Participants in different situations (e.g., requiring a written form to be used for new Participants but a telephonic or electronic system to be used for other Participants).  Regardless of what agreement method is to be used for a Participant, if the Participant properly enters into an agreement applicable to the Plan or amends such an agreement under the method for doing so which applies to him or her and the type of election he or she is making, for all other provisions of the Plan he or she will be deemed to have “filed” with a Plan representative such agreement or amendment on the day he or she completes all steps required by such method to enter into such agreement or amendment.  
9.7    Claims Procedures.
(a)    Initial Claim.  If a Participant, a Participant’s Beneficiary, or any other person claiming through a Participant has a dispute as to the failure of the Plan to pay or provide a benefit, as to the amount of Plan benefit paid, or as to any other matter involving the Plan, the person may file a claim for the benefit or relief believed by the person to be due.  Such claim must be provided by written notice to the Committee.  The Committee shall decide any claims made pursuant to this subsection 9.7.
(b)    Rules If Initial Claim Is Denied.  If a claim made pursuant to subsection 9.7(a) hereof is denied, in whole or in part, the Committee shall generally furnish notice of the denial in writing to the claimant within 90 days (or, if a Participant’s disability is material to the claim, 45 days) after receipt of the claim by the Committee; except that if special circumstances require an extension of time for processing the claim, the period in which the Committee is to furnish the claimant written notice of the denial shall be extended for up to an additional 90 days (or, if a Participant’s disability is material to the claim, 30 days), and the Committee shall provide the claimant within the initial 90‐day (or 45-day) period a written notice indicating the reasons for the extension and the date by which the Committee expects to render the final decision.
(c)    Final Denial Notice.  If a claim made pursuant to subsection 9.7(a) hereof is denied, in whole or in part, the final notice of denial shall be written in a manner designed to be understood by the 

claimant and set forth (i) the specific reasons for the denial, (ii) specific reference to pertinent Plan provisions on which the denial is based, (iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary, and (iv) information as to the steps to be taken if the claimant wishes to appeal such denial of his or her claim, including the time limits applicable to making a request for an appeal and, in the event the claim is one for benefits under the Plan, a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on appeal.
(d)    Appeal of Denied Claim.  Any claimant who has a claim denied under subsection 9.7(a), (b), and (c) hereof may appeal the denied claim to the Committee.  Such an appeal must, in order to be considered, be filed by written notice to the Committee within 60 days (or, if a Participant’s disability is material to the claim, 180 days) of the receipt by the claimant of a written notice of the denial of his or her initial claim.
(1)    If any appeal is filed in accordance with such rules, the claimant (i) shall be given, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claim and (ii) shall be provided the opportunity to submit written comments, documents, records, and other information relating to the claim.
(2)    A formal hearing may be allowed in its discretion by the Committee but is not required.
(e)    Appeal Process.  Upon any appeal of a denied claim, the Committee shall provide a full and fair review of the subject claim, taking into account all comments, documents, records, and other information submitted by the claimant (without regard to whether such information was submitted or considered in the initial benefit determination of the claim), and generally decide the appeal within 60 days (or, if a Participant’s disability is material to the claim, 45 days) after the filing of the appeal; except that if special circumstances require an extension of time for processing the appeal, the period in which the appeal is to be decided may be extended for up to an additional 60 days (or, if a Participant’s disability is material to the claim, 45 days) and the Committee shall provide the claimant written notice of the extension prior to the end of the initial period.  However, if the decision on the appeal is extended due to the claimant’s failure to submit information necessary to decide the appeal, the period for making the decision on the appeal shall be tolled from the date on which the notification of the extension is sent until the date on which the claimant responds to the request for additional information.
(f)    Appeal Decision Notice If Appeal Is Denied.  If an appeal of a denied claim is denied, the decision on appeal shall (i) be set forth in a writing designed to be understood by the claimant, (ii) specify the reasons for the decision and references to pertinent provisions of this Plan on which the decision is based, and (iii) contain statements that the claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claim and, in the event the appeal involves a claim for benefits under the Plan, of the claimant’s right to bring a civil action under Section 502(a) of ERISA.  The decision on appeal shall generally be furnished to the claimant by the Committee within the applicable appeal period that is described above.
(g)    Special Disability Claims and Appeal Rules.  In the event a Participant’s disability is material to a claim or an appeal of a denied claim made under this subsection 9.7, the following provisions of this subsection 9.7(g) shall also apply to such claim or appeal, notwithstanding any other provisions set forth in this subsection 9.7.  

(1)    If a Participant’s disability is material to a claim or an appeal of a denied claim made under this subsection 9.7, then the written notice as to any denial of the initial claim or the appeal, as appropriate, shall to the extent applicable include the information described in subsection 9.7(g)(1)(A) and (B) hereof. 
(A)    If an internal rule, guideline, protocol, or other similar criterion (for purposes of this subsection 9.7(g)(1)(A) and collectively, a “rule”) was relied upon in making an adverse determination on the initial claim or on the appeal, then the applicable written notice (as to the denial of the initial claim or the appeal) shall contain either the specific rule or a statement that such rule was relied upon in making the adverse determination or the decision and that a copy of that rule will be provided to the claimant free of charge upon request.
(B)    In addition, if an adverse determination on the initial claim or on the appeal is based on a medical necessity or experimental treatment or similar exclusion or limit, then the applicable written notice (as to the denial of the initial claim or as to the decision on the appeal) shall contain either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the Participant’s medical circumstances, or a statement that such explanation will be provided to the claimant free of charge upon request.
(2)    Further, if a Participant’s disability is material to an appeal of a denied claim made under this subsection 9.7, then: 
(A)    the claim shall be reviewed on the appeal without deference to the initial adverse benefit determination and the review shall be conducted by an appropriate fiduciary of the Plan who is neither the individual who made the initial adverse benefit determination that is the subject of the appeal nor the subordinate of such individual;
(B)    in the event the initial adverse benefit determination was based in whole or part on medical judgment, an appropriate Plan fiduciary shall, in considering such medical judgment under the appeal, consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment (and who is neither an individual who was consulted in connection with the initial adverse benefit determination that is the subject of the appeal nor the subordinate of any such individual); and
(C)    any medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the initial adverse benefit determination shall be identified, without regard to whether the advice was relied upon in making the benefit determination.
(h)    Miscellaneous Claims Procedure Rules.  A claimant may appoint a representative to act on his or her behalf in making or pursuing a claim or an appeal of a claim.  In addition, the Committee may prescribe additional rules which are consistent with the other provisions of this subsection 9.7 in order to carry out the claim procedures of this Plan.
SECTION 10
FUNDING OBLIGATION
10.1    General Rule for Source of Benefits.  Except as is otherwise provided herein, any payment of any benefit provided under the Plan to or on account of a Participant shall be made from the general assets of the Employer or Employers which are liable for such payment (under the provisions of subsection 7.11 

hereof).  Notwithstanding any other provision of the Plan, neither the Participant, his or her Beneficiary, nor any other person claiming through the Participant shall have any right or claim to any payment of the benefit to be provided pursuant to the Plan which in any manner whatsoever is superior to or different from the right or claim of a general and unsecured creditor of such Employer or Employers.
10.2    “Rabbi” Trust.  Notwithstanding the provisions of subsection 10.1 hereof, Macy’s may, in its sole and absolute discretion, establish a trust (for purposes of this subsection 10.2, the “Trust”) to which contributions may be made by an Employer in order to fund the Employer’s obligations under the Plan.  If, and only if, Macy’s exercises its discretion to establish a Trust, the following paragraphs of this subsection 10.2 shall apply (notwithstanding any other provision of the Plan).
(a)    Grantor Trust Requirement.  The part of the Trust attributable to any Employer’s contributions to the Trust (for purposes of this subsection 10.2, such Employer’s “Trust account”) shall be a “grantor” trust under the Code, in that such Employer shall be treated as the grantor of such Employer’s Trust account within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Code.
(b)    Creditors Rights Under Trust When Employer Insolvent.  Any Employer’s Trust account shall be subject to the claims of such Employer’s creditors in the event of such Employer’s insolvency.  For purposes hereof, an Employer shall be considered “insolvent” if either (i) such Employer is unable to pay its debts as they become due or (ii) such Employer is subject to a pending proceeding as a debtor under the United States Bankruptcy Code.
(c)    Contributions To Trust.  Except as may otherwise be required by the terms of the Trust itself, an Employer may make contributions to its Trust account for the purposes of meeting its obligations under the Plan at any time, and in such amounts, as such Employer determines in its discretion.
(d)    Payments From Trust.  Any payment otherwise required to be made by an Employer under the Plan shall be made by such Employer’s Trust account instead of such Employer in the event that such Employer fails to make such payment directly and such Employer’s Trust account then has sufficient assets to make such payment, provided that such Employer is not then insolvent.  If such Employer becomes insolvent, however, then all assets of such Employer’s Trust account shall be held for the benefit of such Employer’s creditors and payments from such Employer’s Trust account shall cease or not begin, as the case may be.
(e)    Remaining Liability of Employer.  Unless and except to the extent any payment required to be made pursuant to the Plan by an Employer is made by such Employer’s Trust account, the obligation to make such payment remains exclusively that of such Employer.
(f)    Terms of Trust Incorporated.  The terms of the Trust are hereby incorporated by reference into the Plan.  To the extent the terms of the Plan conflict with the terms of the Trust, the terms of the Trust shall control.
SECTION 11
AMENDMENT AND TERMINATION OF PLAN
11.1    Right and Procedure to Terminate Plan.  Macy’s reserves the right to terminate the Plan in its entirety.

(a)    Procedure To Terminate Plan.  The procedure for Macy’s to terminate the Plan in its entirety is as follows.  In order to completely terminate the Plan, the Board shall adopt resolutions, pursuant and subject to the regulations or by-laws of Macy’s and any applicable law, and either at a duly called meeting of the Board or by a written consent in lieu of a meeting, to terminate the Plan.  Such resolutions shall set forth therein the effective date of the Plan’s termination.
(b)    Effect of Termination of Plan.  In the event the Board adopts resolutions completely terminating the Plan, no further benefits may be paid after the effective date of the Plan’s termination.  Notwithstanding the foregoing, the Plan’s termination shall not affect the payment (in accordance with the provisions of the Plan) of the Plan’s benefits attributable to compensation the deferral of which (i) has already been elected by a Participant or otherwise required under the terms of this Plan, and (ii) cannot still be voided by the Participant’s election or otherwise under the terms of Sections 1.409A-1 through 1.409A-6 of the Treasury Regulations, by the later of the effective date of the Plan’s termination or the date such resolutions terminating the Plan are adopted.
11.2    Amendment of Plan.  Subject to the other provisions of this subsection 11.2, Macy’s may amend the Plan at any time and from time to time in any respect; provided that no such amendment shall decrease the benefits attributable to compensation the deferral of which (i) has already been elected by a Participant or otherwise required under the terms of this Plan, and (ii) cannot still be voided by the Participant’s election or otherwise under the terms of Sections 1.409A-1 through 1.409A-6 of the Treasury Regulations, by the later of the effective date of the amendment or the date the amendment is adopted.
(a)    Procedure To Amend Plan.  Subject to the provisions of subsection 11.2(b) hereof, in order to amend the Plan, the Board shall adopt resolutions, pursuant and subject to the regulations or by-laws of Macy’s and any applicable law, and either at a duly called meeting of the Board or by a written consent in lieu of a meeting, to amend the Plan.  Such resolutions shall either (i) set forth the express terms of the Plan amendment or (ii) simply set forth the nature of the amendment and direct an officer of Macy’s to have prepared and to sign on behalf of Macy’s the formal amendment to the Plan.  In the latter case, such officer shall have prepared and shall sign on behalf of Macy’s an amendment to the Plan which is in accordance with such resolutions.
(b)    Alternative Procedure To Amend Plan.  In addition to the procedure for amending the Plan set forth in subsection 11.2(a) hereof, the Board may also adopt resolutions, pursuant and subject to the regulations or by-laws of Macy’s and any applicable law, and either at a duly called meeting of the Board or by a written consent in lieu of a meeting, to delegate to any officer of Macy’s or to the Committee the authority to amend the Plan.
(1)    Such resolutions may either grant the officer or the Committee broad authority to amend the Plan in any manner the officer or the Committee deems necessary or advisable or may limit the scope of amendments he, she, or it may adopt, such as by limiting such amendments to matters related to the administration of the Plan.  In the event of any such delegation to amend the Plan, the officer or the Committee to whom or which authority is delegated shall amend the Plan by having prepared and signed on behalf of Macy’s an amendment to the Plan which is within the scope of amendments which he, she, or it has authority to adopt.  Also, any such delegation to amend the Plan may be terminated at any time by later resolutions adopted by the Board.
(2)    In the event of any such delegation to amend the Plan, and even while such delegation remains in effect, the Board shall continue to retain its own right to amend the Plan pursuant to the procedure set forth in subsection 11.2(a) hereof.

SECTION 12
MISCELLANEOUS
12.1    Delegation.  Except as is otherwise provided in sections 9 and 11 hereof, any matter or thing to be done by Macy’s shall be done by its Board, except that, from time to time, the Board by resolution may delegate to any person or committee certain of its rights and duties hereunder.  Any such delegation shall be valid and binding on all persons, and the person or committee to whom or which authority is delegated shall have full power to act in all matters so delegated until the authority expires by its terms or is revoked by the Board, as the case may be.
12.2    Non-Alienation of Benefits.  Except to the extent required by applicable law, no Participant or Beneficiary may alienate, commute, anticipate, assign, pledge, encumber, transfer, or dispose of the right to receive the payments required to be made by the Company hereunder, which payments and the right to receive them are expressly declared to be nonassignable and nontransferable.  In the event of any attempt to alienate, commute, anticipate, assign, pledge, encumber, transfer, or dispose of the right to receive the payments required to be made by the Company hereunder, the Company shall have no further obligation to make any payments otherwise required of it hereunder (except to the extent required by applicable law).
12.3    No Spousal Rights.  Nothing contained in the Plan shall give any spouse or former spouse of a Participant any right to benefits under the Plan of the types described in Code Sections 401(a)(11) and 417 (relating to qualified preretirement survivor annuities and qualified joint and survivor annuities).
12.4    Separation From Service.  For all purposes of the Plan, a Participant shall be deemed to have separated from service with the Company on the date he or she dies, retires, or otherwise has a separation from service with the Company’s controlled group.  The following provisions of this subsection 12.4 shall apply in determining when a Participant has incurred a separation from service with the Company’s controlled group.
(a)    Effect of Leave of Service.    The Participant’s service with the Company’s controlled group shall be treated as continuing intact while the Participant is on military leave, sick leave, or other bona fide leave of absence where there is a reasonable expectation that the Participant will return to perform services for the Company’s controlled group (but not beyond the later of the date on which the leave has lasted for six months or the date on which the Participant no longer retains a right of reemployment with the Company’s controlled group under an applicable statute or by contract).
(b)    Determination of Separation From Service.  For purposes of the Plan, a separation from service of the Participant with the Company’s controlled group as of any date shall be determined to have occurred when, under all facts and circumstances, either (i) no further services will be performed by the Participant for the Company’s controlled group after such date or (ii) the level of bona fide services the Participant will perform for the Company’s controlled group after such date (whether as an employee or as an independent contractor) will permanently decrease to no more than 20% of the average level of bona fide services performed  (whether as an employee or as an independent contractor) by the Participant for the Company’s controlled group over the immediately preceding 36-month period (or the full period of the Participant’s service for the Company’s controlled group if such period has been less than 36 months).
(c)    Controlled Group Definition.  For purposes of this subsection 12.4, the “Company’s controlled group” means, collectively, (i) each Employer and (ii) each other corporation or other organization that is deemed to be a single employer with an Employer under Section 414(b) or (c) of the Code (i.e., as part of a controlled group of corporations that includes an Employer or under common control with an 

Employer), provided that such Code sections will be applied and interpreted by substituting “at least 50 percent” for each reference to “at least 80 percent” that is contained in Code Section 1563(a)(1), (2), and (3) and in Section 1.414(c)-2 of the Treasury Regulations.
12.5    No Effect On Employment.  The Plan is not a contract of employment, and the terms of employment of any Participant shall not be affected in any way by the Plan except as specifically provided in the Plan.  The establishment of the Plan shall not be construed as conferring any legal rights upon any Participant for a continuation of employment, nor shall it interfere with the right of the Company to discharge any Employee and to treat him or her without regard to the effect which such treatment might have upon him or her as a Participant in the Plan.  Each Participant (and any Beneficiary of or other person claiming through the Participant) who may have or claim any right under the Plan shall be bound by the terms of the Plan.
12.6    Applicable Law.  The Plan shall be governed by applicable federal law and, to the extent not preempted by applicable federal law, the laws of the State of Ohio.
12.7    Separability of Provisions.  If any provision of the Plan is held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, and the Plan shall be construed and enforced as if such provision had not been included.
12.8    Headings.  Headings used throughout the Plan are for convenience only and shall not be given legal significance.
12.9    Counterparts.  The Plan may be executed in any number of counterparts, each of which shall be deemed an original.  All counterparts shall constitute one and the same instrument, which shall be sufficiently evidenced by any one thereof.
12.10    Application of Code Section 409A.  The Plan is intended to satisfy and comply with all of the requirements of Section 409A of the Code and any Treasury Regulations issued thereunder.  The provisions of the Plan shall be interpreted and administered in accordance with such intent.
IN ORDER TO EFFECT THE PROVISIONS OF THIS AMENDED AND RESTATED PLAN DOCUMENT, Macy’s, Inc., the sponsor of the Plan, has caused its name to be subscribed to this Plan document, to be amended and restated effective as of August 1, 2018.
MACY’S, INC.
By ________________________

Title _______________________

Date _______________________

4833-2673-5977.1Exhibit 4.6

DESCRIPTION OF CAPITAL STOCK

 

The following summary of the material provisions of our capital
stock is based on and qualified by our Second Amended and Restated Certificate of Incorporation (the “Charter”), our
Bylaws, our Certificate of Designation of the Series A Junior Participating Preferred Stock and our Warrant Agreement dated October
24, 2014 between the Company and Continental Stock Transfer & Trust Company (“Warrant Agreement”) each of which
is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.6 is a part. The summary
below is also qualified by reference to provisions of the Delaware General Corporation Law (“DGCL”).

Authorized Stock

 

Our Charter authorizes the issuance of 50,000,000 shares, consisting
of 49,000,000 shares of common stock, $0.0001 par value per share (“Common Stock”), and 1,000,000 shares of preferred
stock, $0.0001 par value (“Preferred Stock”).

  

Common Stock

 

As of March 25, 2020, there were 23,021,843 shares of Common Stock
issued and outstanding. The outstanding shares of Common Stock are duly authorized, validly issued, fully paid and non-assessable.
 

 

Voting Power

 

Except as otherwise required by law or as provided in any certificate
of designation for any series of Preferred Stock, the holders of Common Stock possess all the voting power for the election of
our directors and all other matters requiring stockholder action. Holders of Common Stock are entitled to one vote per share held
of record on matters to be voted on by stockholders.

 

Dividends

 

Holders of Common Stock will be entitled to receive such dividends,
if any, as may be declared from time to time by our board of directors in its discretion out of funds legally available therefor
and shall share equally on a per share basis in such dividends and distributions, provided that such holder is not an Unsuitable
Person (as defined below). 

 

Liquidation, Dissolution and Winding-Up

 

In the event of our voluntary or involuntary liquidation, dissolution,
distribution of assets or winding-up, the holders of our Common Stock will be entitled to receive an equal amount per share of
all of our assets of whatever kind available for distribution to stockholders, after the rights of our creditors and the rights
of holders of Preferred Stock, if any, have been satisfied.

 

Preemptive or Other Rights

 

There are no sinking fund provisions applicable to the Common Stock.
Our stockholders have no preemptive or other subscription rights.

 

Preferred Stock

 

Our board of directors has the authority to issue up to an aggregate
of 1,000,000 shares of Preferred Stock in one or more series, and to fix the designations, preferences, rights, qualifications,
limitations and restrictions thereof or thereon, without any further vote or action by the stockholders, of which an aggregate
of 49,000 have been designated as Series A Junior Participating Preferred Stock (“Series A Preferred Stock”), under
a Certificate of Designation filed by the Company with the Secretary of State of the State of Delaware on August 14, 2017.

 

     

     

    

 

Stockholder Rights Plan -- Series A Junior Participating Preferred
Stock

 

On August 13, 2017, our board of directors adopted a stockholder
rights plan (the “Rights Plan”) and declared a dividend distribution of one right (a “Right”) for each
outstanding share of Common Stock to stockholders of record at the close of business on August 25, 2017 (the “Rights Plan
Record Date”). Each Right entitles its holder, under the circumstances described below, to purchase from the Company one
one-thousandth of a share of Series A Preferred Stock, of the Company at an exercise price of $45.00 per Right, subject to adjustment.
The terms of the Rights are set forth in a Rights Agreement, dated as of August 13, 2017 (the “Rights Agreement”),
by and between the Company and Continental Stock Transfer & Trust Company, as rights agent, which was approved by our stockholders
at the Company’s annual meeting of stockholders held on March 7, 2018.

 

The Rights Plan was not adopted in response to any specific effort
to acquire control of the Company. The Company’s board of directors unanimously adopted the rights plan in response to the
potential of a purchase or purchases of a substantial number of shares of Common Stock by a person or group that could gain a substantial,
and potentially controlling, position in the Company through open-market purchases or private transactions without appropriately
compensating all of the Company’s stockholders for such control.

 

The Rights. The Board authorized the issuance of a Right
with respect to each outstanding share of Common Stock held as of the Rights Plan Record Date. New Rights attach to any shares
of Common Stock that become outstanding after the Rights Plan Record Date and prior to the earlier of the “distribution time”
and the “expiration time” (each as defined below). Initially, the Rights are associated with Common Stock and evidenced
by Common Stock certificates (or, in the case of uncertificated shares of Common Stock, the book-entry account that evidences record
ownership of such shares, which contains a notation incorporating the Rights Agreement by reference) and are transferable with
and only with the underlying shares of Common Stock.

 

Separation and Distribution of Rights; Exercisability. Subject
to certain exceptions, the Rights become exercisable and trade separately from Common Stock only upon the “distribution time,”
which occurs upon the earlier of:

 

	●		the close of business on the tenth day after the first date (the “stock acquisition
date”) of public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right
or obligation to acquire, beneficial ownership of 20% or more of the outstanding shares of the Company’s Common Stock, including
in the form of synthetic ownership through derivative positions (any such person or group of affiliated or associated persons
being referred to herein as an “acquiring person”) or

 

	●		the close of business on the tenth business day (or later date if determined by the
Company’s board of directors prior to such time as any person or group becomes an acquiring person) following the commencement
of a tender offer or exchange offer which, if consummated, would result in a person or group becoming an acquiring person.

 

An acquiring person does not include:

 

	 	●	the Company,

 

	 	●	any subsidiary of the Company,

 

	 	●	any employee benefit plan of the Company or of any subsidiary of the Company,

 

	 	●	any person organized, appointed or established by the Company for or pursuant to the terms of any such plan or

 

	 	●	any person who or which, as of immediately prior to the first public announcement of the adoption of the Rights Agreement on August 14, 2017, beneficially owned 20% or more of the outstanding shares of Common Stock. However, notwithstanding the foregoing, such person would be an “acquiring person” if such person, at any time after the first public announcement of the adoption of the Rights Agreement, beneficially owns any shares of Common Stock (other than as a result of equity grants by the Company to directors, officers or employees or the exercise or vesting of such grants and with certain other exceptions) in addition to the shares of Common Stock beneficially owned by such person as of immediately prior to the first public announcement of the adoption of the Rights Agreement.

 

     

     

    

 

In addition, if the Board determines in good faith that a person
who would otherwise be an acquiring person has become such inadvertently and such person divests as promptly as practicable a sufficient
number of shares of Common Stock so that such person would no longer be an acquiring person, then such person will not be deemed
to be an acquiring person.

 

Until the distribution time, the surrender for transfer of any shares
of Common Stock outstanding will also constitute the transfer of the Rights associated with those shares.

 

As soon as practicable after the distribution time, separate rights
certificates will be mailed to holders of record of Common Stock as of the close of business at the distribution time. From and
after the distribution time, the separate rights certificates alone will represent the Rights. Except as otherwise provided in
the Rights Agreement, only shares of Common Stock issued prior to the distribution time will be issued with Rights.

 

The Rights are not exercisable until the distribution time.

 

Expiration Time. Unless earlier redeemed or exchanged by
the Company as described below, the Rights will expire at the close of business on August 12, 2020.

 

Flip-in Event. In the event that a person or group becomes
an acquiring person (a “flip-in event”), each holder of a Right (other than any acquiring person and certain related
parties, whose Rights automatically become null and void) will have the right to receive, upon exercise, Common Stock having a
value equal to two times the exercise price of the Right. If an insufficient number of shares of Common Stock is available for
issuance, then the Board would be required to substitute cash, property or other securities of the Company for Common Stock. The
Rights may not be exercised following a flip-in event while the Company has the ability to cause the Rights to be redeemed, as
described below.

 

Flip-over Event. In the event that, at any time following
the stock acquisition date, any of the following occurs (each, a “flip-over event”):

 

	●		the Company consolidates with or merges with and into any other entity and the Company
is not the continuing or surviving corporation,

 

	●		any entity engages in a share exchange with or consolidates with, or merges with or
into, the Company, and the Company is the continuing or surviving corporation and, in connection with such share exchange, consolidation
or merger, all or part of the outstanding shares of Common Stock are changed into or exchanged for stock or other securities of
any other entity or cash or any other property or

 

	●		the Company sells or otherwise transfers, in one transaction or a series of related
transactions, more than 50% of the assets, cash flow or earning power of the Company and its subsidiaries (taken as a whole), each
holder of a Right (except Rights which previously have been voided as described above) will have the right to receive, upon exercise,
Common Stock of the acquiring company having a value equal to two times the exercise price of the Right. Flip-in events and flip-over
events are collectively referred to as “triggering events.”

 

Series A Preferred Share Provisions. Each one one-thousandth
of a share of Series A Preferred Stock, if issued, will not be redeemable, will entitle the holder thereof to quarterly dividend
payments equal to the greater of $0.001 per share and the amount of dividends paid on one share of Common Stock, will entitle the
holder thereof to receive $1.00 upon liquidation, will have the same voting power as one share of Common Stock and, if shares of
Common Stock are exchanged via merger, consolidation or a similar transaction, will entitle the holder thereof to a per share payment
equal to the payment made on one share of Common Stock.

 

Anti-dilution Adjustments. The exercise price payable, and
the number of shares of Series A Preferred Stock or other securities or property issuable, upon exercise of the Rights are subject
to adjustment from time to time to prevent dilution:

 

     

     

    

 

With certain exceptions, no adjustment in the exercise price will
be required until cumulative adjustments amount to at least 1% of the exercise price. No fractional shares of Series A Preferred
Stock will be issued and, in lieu thereof, an adjustment in cash will be made based on the market price of the Series A Preferred
Stock on the last trading day prior to the date of exercise.

 

Redemption, Exchange. In general, the Company may redeem
the Rights in whole, but not in part, at a price of $0.01 per Right (subject to adjustment and payable in cash, Common Stock or
other consideration deemed appropriate by the Company’s board of directors) at any time until ten days following the stock
acquisition date. Immediately upon the action of the board of directors authorizing any redemption, the Rights will terminate and
the only right of the holders of Rights will be to receive the redemption price.

 

At any time after there is an acquiring person and prior to the
acquisition by the acquiring person of 50% or more of the outstanding shares of the Company’s Common Stock, the Company may
exchange the Rights (other than Rights owned by the acquiring person which will have become void), in whole or in part, at an exchange
ratio of one share of Common Stock, or one one-thousandth of a share of Series A Preferred Stock (or of a share of a class or series
of the Company’s Preferred Stock having equivalent rights, preferences and privileges), per Right (subject to adjustment).

 

No Rights as Stockholder. Until a Right is exercised, its
holder will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends.

 

Amendment of the Rights Agreement. The Company and the rights
agent may from time to time amend or supplement the Rights Agreement without the consent of the holders of the Rights. After the
stock acquisition date, however, no amendment may materially adversely affect the interests of the holders of the Rights (other
than the acquiring person, any affiliate or associate thereof or any transferee of the acquiring person or any affiliate or associate
thereof).

 

Certain Anti-takeover Effects. The Rights may have the effect
of rendering more difficult or discouraging an acquisition of the Company deemed undesirable by the Company’s board of directors,
even if such acquisition would be in the best interests of certain of the Company’s stockholders. The Rights Plan is initially
not dilutive. However, the Rights may cause substantial dilution to a person or group that attempts to acquire control of the Company
on terms or in a manner not approved by the Company’s board of directors, except pursuant to an offer conditioned upon the
negation, purchase or redemption of the Rights. The Rights are not intended to prevent all takeovers of the Company and will not
do so. Since, subject to the restrictions described above, the Company may redeem the Rights prior to the distribution time, the
Rights should not interfere with any merger or business combination approved by the Company’s board of directors.

 

Gaming and Regulatory Matters – Unsuitable Persons 

 

Our Charter provides the Company with the ability to restrict securities
ownership by persons (“Unsuitable Person”) who fail to comply with informational or other regulatory requirements under
applicable gaming laws, who are found unsuitable to hold the Company’s securities by gaming authorities or who could by holding
the Company’s securities cause the Company or any affiliate to fail to obtain, maintain, renew or qualify for a license,
contract, franchise or other regulatory approval from a gaming authority.

 

Specifically, pursuant to our Charter, we may redeem the shares
of capital stock owned or controlled by a stockholder or its affiliates to the extent required by the relevant gaming authority
making a determination of unsuitability, or to the extent our board of directors determines, in its sole discretion, that a person
is likely to jeopardize the Company’s or any affiliate’s application for, receipt of, approval for, right to the use
of, or entitlement to, any gaming license. The redemption price would be determined either by the gaming authority making the finding
of unsuitability, or if such gaming authority does not require a certain price to be paid, by our board of directors, which would
determine the price based on the fair value of the securities to be redeemed; provided, however, that the price per share represented
by the redemption price shall in no event be in excess of the closing sales price per share of the Company’s shares on the
principal national securities exchange on which such shares are then listed on the trading date on the day before we notify the
holder of such redemption. The redemption price may be paid in cash, by promissory note, or both as required pursuant to the terms
established by the applicable gaming authority and, if there are no such terms, as we elect.

 

     

     

    

 

Warrants

 

As of March 25, 2020, there were 19,079,130 warrants outstanding
exercisable for 9,539,565 shares of Common Stock, consisting of 7,999,900 of our public stockholders’ warrants (“Public
Warrants”) and 11,079,230 of our private placement warrants (“Private Warrants”).

 

Public Warrants

 

The Company’s Public Warrants were originally issued as part
of the units sold in the Company’s IPO. Pursuant to the terms of the Warrant Agreement, each such warrant entitles the registered
holder to purchase one-half of one share of our Common Stock at a price of $5.75 (or $11.50 per whole share), subject to adjustment
as discussed below. Such warrants may be exercised only for a whole number of shares of our Common Stock. The Public Warrants became
exercisable on January 23, 2017 and will expire five years after the completion of our Business Combination, at 5:00 p.m., New
York City time on December 23, 2021, or earlier upon redemption or liquidation.

 

We will not be obligated to deliver any shares of Common Stock
pursuant to the exercise of a Public Warrant and will have no obligation to settle such warrant exercise unless a
registration statement under the Securities Act with respect to the shares of Common Stock underlying such warrants is then
effective and a prospectus relating thereto is current, subject to our satisfying our obligations described below with
respect to registration. No such warrant will be exercisable, and we will not be obligated to issue any shares to holders
seeking to exercise their Public Warrants, unless the issuance of the shares upon such exercise is registered and qualified
under the securities laws of the state of the exercising holder, unless exemptions therefrom are available. In the event that
the conditions in the two immediately preceding sentences are not satisfied with respect to a Public Warrant, the holder of
such warrant will not be entitled to exercise such warrant and such warrant may have no value and may expire worthless. In no
event will we be required to net cash settle any Public Warrant.

 

We will use our best efforts to maintain the effectiveness of
a registration statement, and a current prospectus relating thereto, until the expiration or redemption of the Public Warrants
in accordance with the provisions of the Warrant Agreement. Notwithstanding the above, if our Common Stock is at the time of any
exercise of a Public Warrant not listed on a national securities exchange such that it satisfies the definition of a “covered
security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of Public Warrants who exercise
their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the
event we so elect, we will not be required to file or maintain in effect a registration statement or qualify the underlying shares
under state blue sky laws.

 

We may call the Public Warrants for redemption:

 

	●		in whole and not in part;

 

	●		at a price of $0.01 per warrant;

 

	●		upon not less than 30 days’ prior written notice of redemption (the “30-day
redemption period”) to each warrant holder; and

 

	●		if, and only if, the reported last sale price of the Common Stock equals or exceeds
$24.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date we send
the notice of redemption to the warrant holders.

 

If and when the Public Warrants become redeemable by us, we may
exercise our redemption right even if we are unable to register the underlying securities for sale or qualify then under applicable
state securities laws.

 

     

     

    

 

We have established the last of the redemption conditions discussed
above to prevent a redemption call unless there is, at the time of the call, a significant premium to the warrant exercise price.
If the foregoing conditions are satisfied and we issue a notice of redemption of the Public Warrants, each warrant holder will
be entitled to exercise his, her or its warrant prior to the scheduled redemption date. However, the price of the Common Stock
may fall below the $24.00 redemption trigger price as well as the warrant exercise price of $5.75 per one-half of one share ($11.50
per whole share) after the redemption notice is issued.

 

If we call the Public Warrants for redemption as described above,
our management will have the option to require holders that wish to exercise their warrants to do so on a “cashless basis.”
In determining whether to require holders to exercise their warrants on a “cashless basis,” our management will consider,
among other factors, our cash position, the number of warrants that are outstanding and the dilutive effect on our stockholders
of issuing the maximum number of shares of Common Stock issuable upon the exercise of our warrants. If our management takes advantage
of this option, all holders of warrants would pay the exercise price by surrendering their warrants for that number of shares of
Common Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Common Stock underlying the
warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined
below), by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the
Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent
to the holders of warrants. If our management takes advantage of this option, the notice of redemption will contain the information
necessary to calculate the number of shares of Common Stock to be received upon exercise of the warrants, including the fair market
value in such case. If we call our warrants for redemption and our management does not take advantage of this option, the initial
purchasers of the private placement warrants and their permitted transferees would still be entitled to exercise their Private
Warrants for cash or on a cashless basis using the same formula described above.

 

A holder of a Public Warrant may notify us in writing in the event
the holder elects to be subject to a requirement that such holder will not have the right to exercise such warrant, to the extent
that after giving effect to such exercise, such person (together with such person’s affiliates), to the warrant agent’s
actual knowledge, would beneficially own in excess of 9.8% (or such other amount as such holder may specify) of the shares of Common
Stock outstanding immediately after giving effect to such exercise.

 

If the number of outstanding shares of Common Stock is increased
by a stock dividend payable in shares of Common Stock, a split of shares of common stock or other similar event, then, on the effective
date of such stock dividend, split or similar event, the number of shares of Common Stock issuable on exercise of each Public Warrant
will be increased in proportion to such increase in the outstanding shares of Common Stock. A rights offering to holders of Common
Stock entitling holders to purchase shares of Common Stock at a price less than the fair market value will be deemed to be a stock
dividend of a number of shares of Common Stock equal to the product of (i) the number of shares of Common Stock actually sold in
such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable
for Common Stock) multiplied by (ii) one minus the quotient of (x) the price per share of Common Stock paid in such rights offering
divided by (y) the fair market value. For these purposes: (i) if the rights offering is for securities convertible into or exercisable
for Common Stock, in determining the price payable for Common Stock, there will be taken into account any consideration received
for such rights, as well as any additional amount payable upon exercise or conversion, and (ii) fair market value means the volume
weighted average price of Common Stock as reported during the 10 trading day period ending on the trading day prior to the first
date on which the shares of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the
right to receive such rights.

 

In addition, if we, at any time that the Public Warrants are outstanding
and unexpired, pay a dividend or make a distribution in cash, securities or other assets to the holders of Common Stock on account
of such shares of Common Stock (or other shares of our capital stock into which the warrants are convertible), other than (a) as
described above, or (b) certain ordinary cash dividends, then the warrant exercise price will be decreased, effective immediately
after the effective date of such event, by the amount of cash or the fair market value of any securities or other assets paid on
each share of Common Stock in respect of such event.

 

     

     

    

 

If the number of outstanding shares of our Common Stock is decreased
by a consolidation, combination, reverse stock split or reclassification of shares of Common Stock or other similar event, then,
on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number of
shares of Common Stock issuable on exercise of each Public Warrant will be decreased in proportion to such decrease in outstanding
shares of Common Stock.

  

Whenever the number of shares of Common Stock purchasable upon the
exercise of the Public Warrants is adjusted, as described above, the warrant exercise price will be adjusted by multiplying the
warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator of which will be the number of shares
of Common Stock purchasable upon the exercise of the warrants immediately prior to such adjustment, and (y) the denominator of
which will be the number of shares of Common Stock so purchasable immediately thereafter.

 

In case of any reclassification or reorganization of the outstanding
shares of our Common Stock (other than those described above or that solely affect the par value of such shares of Common Stock),
or in the case of any merger or consolidation of us with or into another corporation (other than a consolidation or merger in which
we are the continuing corporation and which does not result in any reclassification or reorganization of our outstanding shares
of Common Stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of
us as an entirety or substantially as an entirety in connection with which we are dissolved, the holders of the Public Warrants
will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the warrants
and in lieu of the shares of our Common Stock immediately theretofore purchasable and receivable upon the exercise of the rights
represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the
holder of the warrants would have received if such holder had exercised their warrants immediately prior to such event. However,
if such holders were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable
upon such consolidation or merger, then the kind and amount of securities, cash or other assets for which each warrant will become
exercisable will be deemed to be the weighted average of the kind and amount received per share by such holders in such consolidation
or merger that affirmatively make such election, and if a tender, exchange or redemption offer has been made to and accepted by
such holders under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members
of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and together with any
affiliate or associate (within the meaning of Rule 12b-2 under the Exchange Act) of such maker and any members of any such group
of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange Act)
more than 50% of the outstanding shares of Common Stock, the holder of a warrant will be entitled to receive the highest amount
of cash, securities or other property to which such holder would actually have been entitled as a stockholder if such warrant holder
had exercised the warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the Common Stock
held by such holder had been purchased pursuant to such tender or exchange offer, subject to adjustments (from and after the consummation
of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in the Warrant Agreement. Additionally,
if less than 70% of the consideration receivable by the holders of Common Stock in such a transaction is payable in the form of
Common Stock in the successor entity that is listed for trading on a national securities exchange or is quoted in an established
over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the registered holder
of the warrant properly exercises the warrant within thirty days following public disclosure of such transaction, the warrant exercise
price will be reduced as specified in the Warrant Agreement based on the per share consideration minus the Black Scholes value
(as defined in the Warrant Agreement) of the warrant. 

 

The Public Warrants were issued in registered form under the
Warrant Agreement with Continental Stock Transfer & Trust Company, as warrant agent, and us. You should review a copy of the
Warrant Agreement for a complete description of the terms and conditions applicable to the warrants. The Warrant Agreement provides
that the terms of the warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective
provision, but requires the approval by the holders of at least 65% of the then outstanding Public Warrants to make any change
that adversely affects the interests of the registered holders of Public Warrants.

 

The warrants may be exercised upon surrender of the warrant certificate
on or prior to the expiration date at the offices of the warrant agent, with the exercise form on the reverse side of the warrant
certificate completed and executed as indicated, accompanied by full payment of the exercise price by certified or official bank
check payable to us (or on a cashless basis, if applicable), for the number of warrants being exercised. The warrant holders do
not have the rights or privileges of holders of Common Stock nor any voting rights until they exercise their warrants and receive
shares of Common Stock. After the issuance of shares of Common Stock upon exercise of the warrants, each holder will be entitled
to one vote for each share held of record on all matters to be voted on by stockholders.

 

     

     

    

 

No fractional shares will be issued upon exercise of the Public
Warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, we will, upon
exercise, round down to the nearest whole number the number of shares of Common Stock to be issued to the warrant holder.

 

Private Warrants

 

The Company’s Private Warrants are identical to the Public
Warrants sold in the IPO, including as to exercise price, exercisability and exercise period, except that, if held by the initial
private placement purchasers or their permitted assigns, they (a) may be exercised for cash or on a cashless basis; and (b)
are not subject to being called for redemption. If the Private Warrants are held by holders other than the initial private placement
purchasers or their permitted transferees, the Private Warrants will be redeemable by us and exercisable by the holders on the
same basis as the Public Warrants.

 

If holders of the Private Warrants elect to exercise them on a cashless
basis, they would pay the exercise price by surrendering their warrants for that number of shares of Common Stock equal to the
quotient obtained by dividing (x) the product of the number of shares of Common Stock underlying the warrants, multiplied by the
difference between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market
value. The “fair market value” shall mean the average reported last sale price of the Common Stock for the 10 trading
days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent.

 

Certain Anti-Takeover Provisions of Our Charter and Bylaws and
Certain Provisions of Delaware Law

 

The Company’s Charter and Bylaws contain provisions that could
have the effect of delaying or preventing changes in control or changes in our management without the consent of our board of directors.
These provisions include:

 

	●		no cumulative voting in the election of directors, which limits the ability of minority
stockholders to elect director candidates;

 

	●		the exclusive right of our board of directors to elect a director to fill a vacancy
created by the expansion of the board of directors or the resignation, death, or removal of a director with or without cause by
stockholders, which prevents stockholders from being able to fill vacancies on our board of directors;

 

	●		the ability of our board of directors to determine whether to issue shares of our
Preferred Stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder
approval, which could be used to significantly dilute the ownership of a hostile acquirer;

 

	●		limiting the liability of, and providing indemnification to, our directors and officers;

 

	●		specifying the Court of Chancery of the State of Delaware as the exclusive forum for
adjudication of disputes;

 

	●		controls over the procedures for the conduct and scheduling of stockholder meetings;
and

 

	●		advance notice procedures that stockholders must comply with in order to nominate
candidates to our board of directors or to propose matters to be acted upon at a stockholders’ meeting, which may discourage
or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or
otherwise attempting to obtain control of the Company.

 

These provisions, singly or together, could delay hostile takeovers
and changes in control of the Company or changes in our board of directors and management.

 

As a Delaware corporation, we are also subject to provisions of
Delaware law, including Section 203 of the DGCL, which prevents some stockholders holding more than 15% of our outstanding Common
Stock from engaging in certain business combinations without approval of the holders of substantially all of our outstanding Common
Stock. Any provision of our Charter or Bylaws, the Rights Agreement, or Delaware law that has the effect of delaying or deterring
a change in control could limit the opportunity for our stockholders to receive a premium for their shares of our Common Stock
and could also affect the price that some investors are willing to pay for our Common Stock.

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