Document:

exhibit102.htm

     

    Exhibit 10.2

     

    
 

    INDEPENDENT
CONTRACTOR AGREEMENT

    

    

    THIS INDEPENDENT CONTRACTOR AGREEMENT
is made and entered into on the 5th day of
September 2008 by and between Insituform Technologies, Inc., a Delaware
corporation (“Insituform”), and Thomas E.
Vossman (“Contractor”).

    

    R
E C I T A L

    

    Insituform desires to retain Contractor
as an independent contractor to render consulting services, and Contractor
desires to be so retained pursuant to the terms and conditions of this
Agreement.

    

    A
G R E E M E N T S

    

    In consideration of the recital and
mutual promises set forth in this Agreement, the parties agree as
follows:

    

    1.           Services.  Contractor
shall from time to time perform such services for Insituform as shall be
requested by the Chief Executive Officer of Insituform.  Contractor
shall have control of his work and the manner in which it is performed; provided, however, Contractor
shall, from time to time, provide oral and/or written reports to the Chief
Executive Officer of Insituform regarding the results of Contractor’s services
as Insituform’s Chief Executive Officer shall reasonably
request.  Contractor and Insituform agree that the level of
anticipated services as an independent contractor will not exceed twenty percent
(20%) of the average level of bona fide services performed by Contractor over
the 36-month period immediately preceding the effective date of this
Agreement.  Unless previously authorized in writing by Insituform,
Contractor shall have no authority to bind Insituform to any contract or
agreement.

    

    2.           Term.  The
term of this Agreement shall be from September 5, 2008 through December 31, 2008
(the “Term”).

    

    3.           Compensation and
Reimbursement of Expenses.

    

    (a)           Insituform
shall compensate Contractor for his services hereunder at a monthly rate
of Thirty Thousand Dollars and no/100 ($30,000) commencing in September
2008; provided,
however, for any hours during any month during the Term in excess
of one hundred twenty-five (125) hours, Insituform shall compensate
Contractor for such additional hours at the rate of Two Hundred Forty
Dollars and no/100 Dollars ($240.00) per hour, excluding travel
time.  The fixed monthly payment shall be paid by Contractor on or
before the 15th day of
the following month.  Any compensation in excess of the fixed monthly
payment shall be payable by Insituform promptly after receipt of an invoice from
Contractor itemizing with reasonable detail the work performed and the date(s)
on which the work was performed. The parties may also agree to such other
compensation arrangements as may be mutually agreed upon in
writing.

    

    (b)           Telephone,
travel (coach), meals, hotels and other pre-authorized out-of-pocket expenses
incurred by Contractor in connection with the performance of services hereunder
shall be reimbursed to Contractor subject to substantiation in accordance with
Insituform’s reimbursement policies.

    

    4.           Independent Contractor
Relationship.  The relationship of Contractor to Insituform is
that of an independent contractor.  Nothing contained herein or
otherwise shall be construed in such manner as to create the relationship of
employer/employee between Contractor and Insituform.  In acknowledging
that he is an independent contractor, Contractor agrees that he shall not be
entitled to participate in, and specifically disclaims and waives any rights to
any benefit to, any benefits or benefit programs offered by Insituform, to any
employee or group of employees, including, but not limited to, any health
insurance, disability insurance, pension, profit sharing, life insurance,
vacation, incentive compensation or other benefits offered to any employee or
group of employees.

    

    5.           Payment of
Taxes.  Contractor acknowledges that all payments made
hereunder shall have been earned by reason of services provided by Contractor
and, accordingly, Contractor agrees to report such payments as ordinary income
on his United States and state income tax returns.  Insituform and
Contractor further acknowledge and agree that Insituform shall not be required
to withhold, nor shall Insituform withhold, any federal or state income, social
security, unemployment or other taxes or similar payments from the amounts
payable to Contractor hereunder.  As an independent contractor,
Contractor shall be fully and solely responsible for all taxes (including, but
not limited to, federal, state and local income taxes, FICA, FUTA, workers’
compensation and unemployment insurance taxes) related to the performance of his
services pursuant to this Agreement, and shall timely make all appropriate
governmental filings and timely pay all taxes, fees and charges, consistent with
his status as an independent contractor.  Contractor shall defend,
indemnify and hold harmless Insituform and its affiliates and their respective
officers, directors, shareholders, employees and agents from all actions,
claims, damages, demands, losses, liabilities, causes of action, costs and
expenses, including attorneys’ fees, of any kind arising out of or related to
Contractor’s failure to make timely filings or timely payments of any amounts
due to such governmental agencies or units.

    

    6.           Confidential
Information.  Contractor agrees that he will not disclose any
Confidential Information (as hereinafter defined) to any third party or use any
Confidential Information for any purpose other than the performance of his
responsibilities under this Agreement.  For purposes of this
Agreement, “Confidential
Information” shall mean any and all information concerning the business
and operations of Insituform and/or any subsidiary or affiliate of Insituform
which is disclosed or made known to Contractor in connection with the services
to be performed by Contractor hereunder including, without limitation, any
information (whether written or oral) made known to Contractor:  (a)
from any inspection, examination or review of the books, records, documents or
files made available to Contractor by Insituform and/or any subsidiary or
affiliate of Insituform, (b) from communications with any officer, employee,
agent or representative of Insituform and/or any subsidiary or affiliate of
Insituform or (c) through disclosure or discovery in any other
manner.  Notwithstanding the foregoing, Confidential Information shall
not include information which was or becomes publicly known without disclosure
by Contractor, or which was or is acquired by Contractor from a third party who
is not in breach of any confidentiality agreement with
Insituform.  During the term of this Agreement Insituform may provide
Contractor an Insituform-owned Blackberry and/or computer.  Contractor
agrees to take reasonable care to protect such equipment and to maintain the
confidentiality of all information that resides and/or may be transmitted to or
by such equipment.  Contractor agrees to immediately return such
equipment to Contractor, upon Contractor’s request.

    

    7.           Possession of
Property.  Contractor acknowledges Insituform’s and/or its
subsidiaries’ and/or affiliates’ (collectively, the “Insituform Group”) exclusive
right to ownership, possession and title to all papers, documents, tapes,
drawings, notebooks, formulas, customer lists, software, hardware, trademarks,
trade names, service marks, processes, data, intellectual property, or other
records, information or products prepared by Contractor during his engagement
(past, present and future) with Insituform or provided by Insituform and/or any
other member of the Insituform Group, or which otherwise come into Contractor’s
possession by reason of his engagement with Insituform.  Contractor
agrees not to make or permit to be made, except in pursuit of Contractor’s
duties hereunder, any copies of such items.  Contractor further agrees
to deliver to Insituform upon request all such items in Contractor’s possession
and without request to immediately deliver such items upon the termination,
voluntarily or involuntarily, of Contractor’s engagement.

    

    8.           Inventions.  The
term “Inventions” means
all ideas, inventions and discoveries, whether patentable, copyrightable or not,
made or conceived by Contractor in the course of his engagement by Insituform,
either solely or jointly with others, during the term of his engagement (past,
present or future) with any member of the Insituform Group, including, but not
limited to, software, algorithms, designs, devices, processes, methods,
formulae, techniques, data storage systems, networks, servers and any
improvements to the foregoing.  Contractor agrees to promptly disclose
all Inventions to Insituform.  Contractor shall inform Insituform
promptly and fully of such Inventions by a written report, setting forth in
detail the structures, procedures and methodology employed and the results
achieved.  Contractor also shall submit a report upon completion of
any study or research project undertaken on behalf of Insituform or any other
member of the Insituform Group, whether or not in the Contractor’s opinion a
given study or project has resulted in an Invention. Contractor hereby assigns
and agrees to assign to Insituform all of his rights to such Inventions and to
all proprietary rights therein, based thereon or related thereto, including, but
not limited to, applications for United States and foreign letters patent and
resulting letters patent.  Upon the request of Insituform and at
Insituform’s expense, Contractor shall execute such documents and provide such
assistance as may be deemed necessary by Insituform and to apply for, defend or
enforce any United States and foreign letters patent based on or related to such
Inventions.  Contractor agrees to execute all documents reasonably
requested by Insituform to assist Insituform in perfecting or protecting any or
all of its rights in the Inventions. Contractor acknowledges that all
copyrightable Inventions are “works made for hire” and consequently that
Insituform owns all copyrights thereto, including, but not limited to, 17 U.S.C.
Sections 101 and 210.  Insituform and its successors and assigns shall
have the sole and exclusive right to register the copyright(s) in all such work
in its name as the owner and author of such work and shall have the exclusive
rights conveyed under 17 U.S.C. Sections 106 and 106A, including, but not
limited to, the right to make all uses of the works in which attribution or
integrity rights may be implicated.  Additionally, without in any way
limiting the foregoing, Contractor hereby assigns, transfers and conveys to
Insituform, and its successors and assigns, all right, title or interest that
Contractor may now have, or may acquire in the future, to the work including,
but not limited to, all ownership, patent (United States and foreign letters
patent), trade secret, trade names and trademarks, copyright moral, attribution
and/or integrity rights.  Contractor hereby expressly and forever
waives any and all rights that Contractor may have arising under 17 U.S.C.
Section 106A, and any rights arising under any federal, state, territorial or
foreign laws that convey rights which are similar in nature to those conveyed
under 17 U.S.C. Section 106A.  Notwithstanding any provision of the
Copyright Act, any and all copyrightable works constituting Inventions or
prepared either in whole or in part by Contractor in connection with his
engagement are, shall be, or shall become, owned by Insituform.

    

    9.           Specific
Enforcement.  Contractor agrees that any violation or breach by
Contractor and/or his Representatives of any provision of this Agreement would
cause immediate and irreparable harm to the Insituform Group, the exact amount
of which will be impossible to ascertain, and for that reason further agrees
that the Insituform Group shall be entitled, as a matter of right, to an
injunction out of the appropriate court of competent jurisdiction, restraining
any further violation or breach of this Agreement by Contractor, either directly
or indirectly, such right to an injunction being cumulative and in addition to
whatever remedies the Insituform Group may have under applicable law and/or this
Agreement.  Insituform also shall have the right to require Contractor
to account for and pay over to Insituform all compensation, profits, monies,
accruals, increments, or other benefits derived or received by him as the result
of any transactions constituting a breach of this
Agreement.  Insituform may set off any amounts due it against any
compensation owed to Contractor.  The remedies of the Insituform Group
under this Agreement are not exclusive, and shall not prejudice any other rights
that the Insituform Group otherwise might have. In the event of a breach of this
Agreement, Contractor agrees to pay all costs of enforcement and collection of
any and all remedies and damages, including reasonable attorneys’
fees.

    

    10.           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Missouri, without regards to
its conflict of laws principles.  The parties hereto hereby agree that
all claims, actions, suits and proceedings between the parties hereto relating
to this Agreement shall be filed, tried and litigated only in the Circuit Court
of Saint Louis County, Missouri or the United States District Court for the
Eastern District of Missouri.  In connection with the foregoing, the
parties hereto consent to the jurisdiction and venue of such courts and
expressly waive any claims or defenses of lack of personal jurisdiction of or
proper venue by such courts.

    

    11.           Waiver.  The
failure of any party to insist, in any one or more instances, upon performance
of any of the terms or conditions of this Agreement, shall not be construed as a
waiver or relinquishment of any rights granted hereunder for the future
performance of any such term, covenant or condition.

    

    12.           Amendment.  This
Agreement may only be amended by an agreement in writing signed by the party
against whom enforcement is sought.

    

    13.           Binding
Effect.  This Agreement shall be binding on the parties and
their respective heirs, successors and assigns.  Contractor shall not
assign this Agreement without the prior written consent of
Insituform.

    

    14.           Reasonableness of
Covenants.  The parties agree that the duration and scope of
the restrictions imposed under Sections 6 through 8 hereof (the “Covenants”) are fair and
reasonable and are reasonably required for the protection of Insituform and/or
its subsidiaries and/or affiliates.  Should any court of competent
jurisdiction determine that any of the Covenants, or any part thereof, are
unenforceable because of the duration or scope of such provision, the parties
hereto agree that such court shall have the power to substitute, to the fullest
extent enforceable, provisions similar hereto or such other provisions as will
enable Insituform and/or its subsidiaries and/or affiliates, to the fullest
extent practicable, to enjoy the benefits intended to be agreed upon by and
under Sections 6, 7 and 8 hereof.

    

    IN WITNESS WHEREOF, the parties hereto
have executed this Agreement on the day, month and year first above
written.

     

    
       

      

      
        	 
      	
                INSITUFORM
      TECHNOLOGIES, INC.

                 

              
	 
      	 
      
	 
      	
                By:  /s/ J. Joseph
      Burgess

                Name:  J.
      Joseph Burgess

                Title:  President
      and Chief Executive Officer

                 

              
	 
      	 
      
	 
      	
                CONTRACTOR

                 

              
	 
      	 
      
	 
      	
                /s/ Thomas E.
      Vossman

                Thomas
      E. Vossman_

 

STOCK CREDIT PLAN FOR 2008-2009

Of

MACY’S, INC.

(as amended as of
August 22, 2008)

1. Purpose of the Plan.

The purpose of
this Plan is to further the achievement of certain priorities of the strategic
plan of Macy’s, Inc. (the "Company") by offering long-term incentives
in addition to current compensation to those officers and key employees of the
Company and its subsidiaries who will be largely responsible for such
achievement.

 

2.
Administration of the Plan.

The Plan shall
be administered by the Compensation and Management Development Committee of the
Board of Directors of the Company (the "Committee").  No member of
the Committee while serving as such shall be eligible for participation in the
Plan.

Subject to the
provisions of the Plan, the Committee shall have exclusive power to select the
employees to be granted Stock Credits, to determine the number of Stock Credits
to be granted to each employee selected, to determine the type of Stock Credits
to be granted to each participant, to determine the time or times when Stock
Credits will be granted, and to determine that all participants shall be of a
single class or to divide participants into different classes. Subject to the
requirements of Section 409A and the terms of this Stock Credit Plan, the Committee
shall determine the time or times, and the conditions, subject to which any
awards may become payable and may, in its sole discretion, waive or accelerate
any provision of this Plan. In the case of the CEO’s grants, any actions
recommended by the Committee are subject to approval by the Board of Directors.

Decisions and
determinations by the Committee shall be final and binding upon all parties,
including shareholders, participants, and other employees. The Committee shall
have the authority to interpret the Plan, to establish and revise rules and
regulations relating to the Plan, and to make any other determinations that it
believes necessary or advisable for the administration of the Plan.

 

3.
Participation.

Individual
participants in the Plan shall be selected by the Committee from key employees
of the Company and its subsidiaries. The term "employee" shall mean
any person (including any officer) employed by the Company or a subsidiary on a
salaried basis and, except as provided in Section 2 above with respect to
Committee members, no employee shall be excluded because he is also a Director
of the Company or any of its subsidiaries.

 

4. Stock
Credits.

Awards under
this Plan shall be granted to a participant in the form of Stock Credits
(“Stock Credits”), which shall be credited to a Stock Credit Account to be
maintained for such participant. Each Stock Credit shall be deemed to be
equivalent in value to one share of Common Stock of the Company.  Stock Credits
awarded under this Plan shall be credited with dividend equivalents during the
Holding Period until such Stock Credits are forfeited or paid out pursuant to
Section 7or 8 below.  Dividend equivalents, which will be paid only on whole,
not fractional, Stock Credits, will be converted to additional Stock Credits
(in whole and fractional shares) based on the 20-trading day average closing
price of the Common Stock of the Company as reported on the New York Stock
Exchange ending on the record date for the dividend.

The Committee
may award the following Stock Credits:  (i) Core Stock Credits, a portion of
which may be earned based on achievement of certain strategic objectives of the
Company during the Performance Period (“Performance-Based Core Stock Credits”),
and a portion of which may be earned based solely on the participant’s service
(“Time-Based Core Stock Credits”), and (ii) on a limited basis, My
Macy’s/Consolidation Stock Credits, which may be earned based on achievement of
certain strategic objectives related to sales in the My Macy’s regions and division
consolidation savings during the Performance Period.

 

5. Time of
Grant of Awards.

The Committee
shall make grants of awards of Stock Credits during the first year of the
Performance Period (i.e., Spring 2008). 

 

6.   Right to Payment of Stock Credits.

 

A participant shall have no right to receive payment for any
part of his Stock Credits and all of his Stock Credits shall be forfeited
unless he remains in the employment of the Company or a subsidiary at all times
from the date of grant of the award through the earliest to occur of:

 

(a) the last day of the Holding
Period;

 

(b) his retirement date (defined
as any time after age 62 with at least 10 years of vesting service, as
determined for purposes of the Macy’s, Inc. Cash Account Pension Plan) during
the Performance Period or the Holding Period;

 

(c) his retirement date (defined
as any time between age 55 and age 62, with at least 10 years of vesting
service, as determined for purposes of the Macy’s, Inc. Cash Account Pension
Plan) during the Holding Period;

 

(d) his involuntary termination
without Cause;

 

(e)  his death while employed by
the Company or a subsidiary;

 

(f) Total Disability while
employed by the Company or a subsidiary; or

 

(g)  the circumstances described
in Section 7.

 

The extent to which a participant earns the right to receive
payment of all or part of the Stock Credits in an award grant shall be
determined by the Committee based on the degree to which the Company has
achieved certain strategic plan objectives as established by the Committee for
the Performance period, but in no event will be less than the portion of the
Core Stock Credits allocated to the participant that are not based on achieving
certain performance objectives.  Each participant shall receive payment of the
same percentage of his/her Stock Credits.  Any Stock Credits allocated to a
participant that are not paid shall be forfeited.  Payment of Stock Credits
shall include any applicable dividend equivalents credited to such Stock
Credits pursuant to Section 4.

 

A participant who, during the Performance Period (i) retires
at or after age 62 with at least 10 years of vesting service, or (i) is
terminated without Cause, will receive a payment equal to the number of Stock
Credits earned during the Performance Period under this Section 6 multiplied by
a fraction, the numerator of which is the number of months that the participant
was employed during the Performance Period and the denominator of which is 24. 
The payment will be made at the same time and in the same manner as applicable
to the active participants.

 

A participant who, during the Holding Period (i) retires at
or after age 62 with at least 10 years of vesting service, or (ii) is
terminated without Cause, will receive the number of Stock Credits earned
during the Performance Period under this Section 6.  The payment will be made
at the same time and in the same manner as applicable to the active
participants.

 

A participant who retires during the Holding Period between
age 55 and 62 with at least 10 years of vesting service, will be entitled to a
pro-rata payment of his/her Stock Credits equal to the number of Stock Credits
(whether service based or performance based, and including dividend
equivalents) earned during the Performance Period under this Section 6, one-half
of which is multiplied by a fraction, the numerator of which is the total
number of months that the participant was employed during the Performance
Period plus the Holding Period and the denominator of which is 48 and the other
half of which is multiplied by a fraction, the numerator of which is the total
number of months that the participant was employed during the Performance
Period plus the Holding Period and the denominator of which is 60.  The payment
will be made at the same time and in the same manner as applicable to the
active participants.

 

In the case of death or Total Disability during the
Performance Period, a payment equal to the portion of the Core Stock Credits
allocated to the participant that are not based on achieving certain performance
objectives, discounted to present value (using the Company’s standard discount
rate) at the time of death or determination of the Total Disability, will be
made to the participant’s designated beneficiary, or if no beneficiary has been
designated, to the participant’s estate (in the event of death) or to the
participant (in the event of Total Disability).

 

In the case of death or Total Disability during the Holding
period, a lump sum payment of the discounted present value of the account
(using the Company’s standard discount rate) will be made to the participant’s
designated beneficiary, or if no beneficiary has been designated, to the
participant’s estate (in the event of death) or to the participant (in the
event of Total Disability).

 

Except as otherwise determined by the Committee in
accordance with this Plan, a participant’s right to receive payment for his
Stock Credits shall be forfeited automatically and without further notice on
the date that the participant ceases to be an employee of the Company or a
subsidiary by reason other than as set forth above prior to the last day of the
Holding Period.

 

The Committee may, if in the opinion of the Committee
circumstances warrant such action, approve payment of any or all of Stock
Credits which would otherwise be forfeited as a result of a participant failing
to remain in the employment of the participating Companies for the required
period, provided, however, that no such payment shall be accelerated unless
such acceleration would be permitted under Section 409A of the Internal Revenue
Code.

 

7. Change in
Control

Upon a Change
in Control, the strategic plan objectives for Performance-Based Core Stock
Credits, and if applicable, My Macy’s/Consolidation Stock Credits, shall be
deemed achieved, and all service requirements for Time-Based Core Stock Credits
will be deemed satisfied.  In addition, Participants shall be paid 100% of the
Stock Credit balance on the 10th day after a Change in Control.  The
value of a Participant’s Stock Credit balance shall be based on the value at
which the Company’s stock is purchased or exchanged pursuant to the Change in
Control agreement, or if the Change in Control does not involve a purchase or
exchange of the Company’s stock, such value shall be based on the 20-trading day
average closing price of the Company’s common stock immediately preceding the
Change in Control, as reported on the New York Stock Exchange.  Notwithstanding
the foregoing, in the event that a Change in Control fails to meet the
requirements of Section 409A, payment shall be made at the same time and in the
same manner as applicable to active participants absent a Change in Control.

 

8. Form and
Timing of Payment.

All payments
shall be made wholly in cash.  Except as otherwise provided herein with respect
to death, Total Disability or a Change in Control, payments shall be made to
the holder of Stock Credits in two installments.  The first installment, equal
to 50% of the Stock Credits and 50% of the dividends to be paid pursuant to
Section 6 above will be made in a lump sum on or as soon as practicable after
January 28, 2012, but in no event later than December 31, 2012.  The second
installment, equal to the remainder of the participant’s Stock Credits and
dividends to be paid pursuant to Section 6, above, will be made in a lump sum
on or as soon as practicable after February 2, 2013, but in no event later than
December 31, 2013.  The amount of cash to be paid shall be based on the
20-trading day average closing price of the Company’s common stock immediately
preceding the last day of the company’s fiscal year immediately preceding the
year of payment, as reported on the New York Stock Exchange.

For a
participant (or a participant’s designated beneficiary or if no beneficiary has
been designated, the participant’s estate) who becomes entitled to payment
under Section 6, above as a result of death or Total Disability, payment shall
be made 90 days after the date of the death or determination by the Committee
of a participant’s Total Disability.  Such payment shall be made in a single
lump sum.  Notwithstanding the foregoing, in the event that Total Disability
fails to meet the requirements of Section 409A, payment shall be made at the
same time and in the same manner as applicable to active participants.

Payments shall
not be considered compensation for purposes of the Company’s qualified or
nonqualified retirement plans or its group health and welfare benefit plans.

 

9.
Miscellaneous Provisions.

A. An
employee's rights and interests under the Plan may not be assigned or
transferred. In the case of an employee's death, payment of Stock Credits due
under this Plan shall be made to his designated beneficiary or if no
beneficiary has been designated, to his estate.

B. No employee
or other person shall have any claim or right to be granted an award under this
Plan. Neither this Plan nor any action taken hereunder shall be construed as
giving any employee any right to be retained in the employ of any participating
Company.

C. The Company
shall have the right to deduct from all awards paid in cash any taxes or other
amounts required by law to be withheld with respect to such cash awards.

D. As used in
this Plan, the following terms shall have the following meanings:

“Cause”, as it relates to the termination of a participant’s
employment, means "cause" as defined in any employment agreement the
participant may have with the Company or a Subsidiary or, if no such agreement
exists cause shall mean:

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

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

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

(iv) Intentional wrongful engagement in any competitive activity
which would constitute a material breach of the duty of loyalty; or

(v) Intentional breach of any stated material employment policy of
the Company. 

No act, or failure to act, on the part of an Employee shall be
deemed "intentional" if it was due primarily to an error in judgment
or negligence but shall be deemed “intentional" only if done, or omitted
to be done, by the Employee not in good faith and without reasonable belief
that his action or omission was in or not opposed to the best interest of the
Employer.  Failure to meet performance standards or objectives of the Company
shall not constitute Cause for purposes hereof.  

 

“Change in Control,” means the occurrence during the term of
this plan of any of the following events:

 

            (i) The Company is merged, consolidated, or
reorganized into or with another corporation or other legal entity, and as a
result of or immediately following such merger, consolidation, or
reorganization less than a majority of the combined voting power of the
then-outstanding securities of such other corporation or entity immediately
after such transaction are held in the aggregate by the holders of the
then-outstanding securities entitled to vote generally in the election of
directors of the Company ("Voting Stock") immediately prior to such
transaction;

 

(ii) The Company sells or otherwise
transfers all or substantially all of its assets to another corporation or
other legal entity and, as a result of or immediately following such sale or
transfer, less than a majority of the combined voting power of the
then-outstanding securities of such other corporation or entity immediately
after such sale or transfer is held in the aggregate by the holders of Voting Stock
of the Company immediately prior to such sale or transfer;

 

(iii) There is a report filed on
Schedule 13D or Schedule 14D‐1 (or any successor schedule, form, or
report or item therein), each as promulgated pursuant to the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), disclosing
that any person (as the term "person" is used in Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act) has become the beneficial owner (as the
term "beneficial owner" is defined under Rule 13d‐3 or any successor
rule or regulation promulgated under the Exchange Act) of securities
representing 25% or more the of the combined voting power of the Voting Stock
of the Company (a “25% holder”), provided, however that no such person will be
deemed to constitute a 25% holder by reason of such person’s increase in
percentage ownership of Voting Stock resulting from repurchases of Voting Stock
by the Company or any subsidiary unless thereafter such person purchases or
otherwise acquires more than 100,000 additional shares of Voting Stock; 

 

(iv)
The Company files a report or proxy statement with the Securities and Exchange
Commission pursuant to the Exchange Act disclosing in response to Form 8‐K
or Schedule 14A (or any successor schedule, form, or report or item therein)
that a change in control of the Company has occurred or will occur in the
future pursuant to any then-existing contract or transaction; or

 

            (v) If, during any period of two consecutive
years, individuals who at the beginning of any such period constitute the
directors of the Company cease for any reason to constitute at least a majority
thereof; provided, however, that for purposes of this clause (v) the following
persons will in all events be deemed to be directors of the Company as of the
beginning of the relevant two-year period: each director who is first elected,
or first nominated for election by the Company's stockholders, by a vote of at
least two-thirds of the directors of the Company (or a committee thereof) then
still in office who were directors of the Company at the beginning of the
relevant two-year period (including any person deemed to be a director pursuant
to the immediately preceding clause).

 

Notwithstanding the foregoing provisions of Section (iii) or
(iv), unless otherwise determined in a specific case by majority vote of the
Board of Directors of the Company (the "Board"), a "Change in
Control" will not be deemed to have occurred for purposes of clauses (iii)
or (iv) solely because (1) the Company, (2) an entity in which the Company,
directly or indirectly, beneficially owns 50% or more of the voting securities
(an "Affiliate"), or (3) any employee stock ownership plan or any
other employee benefit plan of the Company or any Affiliate either files or
becomes obligated to file a report or a proxy statement under or in response to
Schedule 13D, Schedule 14D‐1, Form 8‐K, or Schedule 14A (or any
successor schedule, form, or report or item therein) under the Exchange Act
disclosing beneficial ownership by it of shares of Voting Stock, whether in
excess of 25% or otherwise, or because the Company reports that a change in
control of the Company has occurred or will occur in the future by reason of
such beneficial ownership.

 

 “Holding Period,” means
the period beginning on the date following the Performance Period and ending on
the following dates: (i) in the case of 50% of the Stock Credits and any
dividends thereon, the last day of Company’s fiscal year that begins in 2011
and (ii) in the case of the remaining 50% of Stock Credits and any dividends
thereon, the last day of Company’s fiscal year that begins in 2012.

“Performance
Period” means the period during which the Company’s achievement of its
strategic plan for Performance-Based Core Stock Credits and/or My
Macy’s/Consolidation Stock Credits is measured (i.e., the fiscal years of the
Company that begin in 2008 and 2009).

“Section 409A”
means Section 409A of the Internal Revenue Code of 1986, as amended, and also
including final regulations or any other guidance, promulgated with respect to
such Section by the U.S. Department of the Treasury or the Internal Revenue
Service.

"Subsidiary"
means any corporation or other entity a majority of whose outstanding voting
power is held, directly or indirectly, by the Company.

"Total
Disability" means, because of physical or mental impairment a participant
is unable to perform his duties
for a period of 12 months or
the Social Security Administration makes a determination that an employee is
disabled.  The Committee, upon the basis of such evidence, shall make all
determinations as to the date and extent of disability of any participant as
the Committee deems necessary and desirable.

 

10. Amendments
and Termination.

 

The
Board of Directors may at any time amend or terminate this Plan with regard to
any or all Stock Credits, whether awarded or not, including to comply with
Section 409A of the Internal Revenue Code; provided that, upon a Plan
termination, payments with respect to outstanding Stock Credits will be made 30
days after the earliest date, if any, permitted by Section 409A. . No amendment
of termination may be made or effected if it would cause the Plan to fail to
comply with Section 409A.  If circumstances warrant, the Committee may, during
the Performance Period, modify the objectives or the minimum level of
achievement necessary to earn payment of Performance-Based Core Stock Credits
and My Macy’s/Consolidation Stock Credits. Except as specifically provided in
this Plan, the acceleration of any payment is prohibited.

 

 

11. Governing Law; Plan Interpretation

 

The
interpretation, performance, and enforcement of this Plan shall be governed by
the laws of the State of Ohio, without giving effect to the principles of
conflict of laws thereof. To the extent applicable, it is intended that the
compensation arrangements under this Plan be in full compliance with Section
409A.  This Plan shall be construed in a manner to give effect to such
intention.  

 

 

12. Effective
Date of the Plan.

The Plan shall
be effective as of March 21, 2008.

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