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                                                                    EXHIBIT 10.1

                            1994 STOCK INCENTIVE PLAN
                            (Amended March 18, 2005)

I.      GENERAL

         1. PURPOSE. The purpose of the Plan is to aid the Company and its
Subsidiaries in attracting, retaining, and motivating management employees.

         2. DEFINITIONS. Whenever used herein, the following terms shall have
the meanings set forth below:

           a.  "Board" means the Board of Directors of the Company.

           b.  "Code" means the Internal Revenue Code of 1986, as amended.

           c. "Committee" means a committee designated by the Board, which shall
         consist of not less than three members of the Board who shall be
         appointed by and serve at the pleasure of the Board and who shall be
         "non-employee" directors within the meaning of Rule 16b-3 of the
         General Rules and Regulations under the Securities Exchange Act of
         1934, as amended, and who shall be "outside" directors within the
         meaning of Section 162(m) of the Code.

           d. "Company" means The May Department Stores Company, a Delaware
         corporation.

           e. "Disability" means a permanent and total disability which enables
         the Participant to be eligible for and receive a disability benefit
         under the Federal Social Security Act.

           f. "Fair Market Value" means, as applied to a specific date, the
         average of the high and low prices of the Stock on the Composite Tape
         for New York Stock Exchange listed companies as reported in the Wall
         Street Journal or such other source as the Committee deems reliable,
         or, if no sale or sales of the Stock occurred on that day, on the last
         preceding day on which Stock was so traded.

           g. "Incentive Stock Option" means an Option granted under the Plan
         which constitutes and shall be treated as an "incentive stock option"
         as defined in Section 422 of the Code.

           h. "Non-Qualified Stock Option" means an Option granted under the
         Plan which shall not constitute or be treated as an Incentive Stock
         Option.

           i. "Non-Tandem Stock Appreciation Right" means a Right described in
         Part III, Section 3.

           j. "Option" means a right or rights to purchase shares of Stock
         described in Part II.

           k. "Option Agreement" means the agreement between the Company and a
         Participant evidencing the grant of an Option and containing the terms
         and conditions, not inconsistent with the Plan, that are applicable to
         such Option.

           l. "Participant" means an individual to whom an Option or Right is
         granted or Restricted Stock Grant is made.

           m. "Performance Restricted Stock" means Restricted Stock whose
         provisions include the restrictions described in Part IV, Section 3(b).

           n. "Plan" means the 1994 Stock Incentive Plan of the Company, as
         amended from time to time.

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           o. "Related Option" means the Option in relation to which a Tandem
         Stock Appreciation Right is granted.

           p. "Restricted Stock Grant" means a grant described in Part IV.

           q. "Retirement" means retirement as that word is defined in any
         retirement plan sponsored by the Company or a Subsidiary which is
         applicable to the Participant.

           r. "Stock" means the Common Stock of the Company.

           s. "Stock Appreciation Right" or "Right" means a right described in
         Part III which provides for the payment of an amount in cash or Stock
         in accordance with such terms and conditions as are provided in the
         Stock Appreciation Right Agreement applicable to such Right; provided
         however, that in Part III, Section 2, "Right" shall refer only to a
         "Tandem Stock Appreciation Right" and that in Part III, Section 3,
         "Right" shall refer only to a "Non-Tandem Stock Appreciation Right".

           t. "Stock Appreciation Right Agreement" means the agreement between
         the Company and a Participant evidencing the grant of a Stock
         Appreciation Right and containing the terms and conditions, not
         inconsistent with the Plan, that are applicable to such Right.

           u. "Subsidiary" means a subsidiary of the Company or an
         unincorporated organization controlled, directly or indirectly, by the
         Company.

           v. "Tandem Stock Appreciation Right" means a Right described in Part
         III, Section 2.

         3. ADMINISTRATION. The Plan shall be administered by the Committee.
Subject to all applicable provisions of the Plan, the Committee is authorized to
approve grants of Options or Rights or the making of Restricted Stock Grants in
accordance with the Plan, to construe and interpret the Plan, to prescribe,
amend, and rescind rules and regulations relating to the Plan and to make all
determinations and take all actions necessary or advisable for the Plan's
administration. The Committee shall act by vote or written consent of a majority
of its members. Whenever the Plan authorizes or requires the Committee to take
any action, make any determination or decision or form any opinion, then any
such action, determination, decision or opinion by or of the Committee shall be
in the absolute discretion of the Committee.

         4. SHARES SUBJECT TO THE PLAN.

           (a) Maximum Number of Shares. Stock issued under the Plan shall be
         treasury shares subject to the following limitations:

               (i) Plan Maximum. The maximum number of shares of Stock which may
               be issued under the Plan after March 21, 2003 is 44,727,304, of
               which no more than 5,691,749 shares may be issued pursuant to
               Restricted Stock Grants.

               (ii) Participant Maximum. The maximum number of Options and Stock
               Appreciation Rights which may be granted to any Participant
               during the term of the Plan is 2,602,853; provided, however, that
               if a Stock Appreciation Right is issued in substitution for an
               existing stock option or in tandem with a stock option, then the
               grant of such a Stock Appreciation Right shall not count against
               the limit. The maximum number of shares of Stock which may be
               issued to each Participant free from restrictions pursuant to a
               grant of Performance Restricted Stock is 100,000 per year.

           (b) Expired Options or Rights. If an Option or Right expires,
         terminates, ceases to be exercisable or is surrendered without having
         been exercised in full, then the shares relating to the Option or Right
         shall, unless the Plan has been terminated, again become available
         under the Plan.

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           (c) Lapse of Restrictions on Restricted Stock. If any shares of Stock
         shall be returned to the Company pursuant to the provisions of Sections
         2 or 3 of Part IV or in the instruments evidencing the making of
         Restricted Stock Grants, then such shares shall, unless the Plan has
         been terminated, again become available under the Plan.

         5. PARTICIPANTS. Participants in the Plan shall be determined as
follows:

           (a) Eligibility. The individuals who are eligible to receive Options,
         Rights or Restricted Stock Grants hereunder shall be limited to
         management employees of the Company and its Subsidiaries (including
         employees who are directors and/or officers).

           (b) Determination. From time to time the Committee shall, in its sole
         discretion, but subject to all of the provisions of the Plan, determine
         which of those eligible employees shall receive Option(s), Stock
         Appreciation Right(s) or Restricted Stock Grant(s) under the Plan and
         the size, terms, conditions and/or restrictions of the Option(s),
         Right(s) or Restricted Stock Grant(s).

           (c) Differing Terms; Effect of Grant. The Committee may approve the
         grant of Option(s) or Right(s) or the making of Restricted Stock
         Grant(s) subject to differing terms, conditions and/or restrictions to
         any eligible employee in any year. The Committee's decision to approve
         the grant of an Option or Right or the making of a Restricted Stock
         Grant to an eligible employee in any year shall not require the
         Committee to approve the grant of an Option or Right or the making of a
         Restricted Stock Grant to that employee in any other year or to any
         other employee in any year; nor shall the Committee's decision with
         respect to the size, terms, conditions and/or restrictions of any
         Option or Right to be granted to an employee or any Restricted Stock
         Grant to be made to an employee in any year require the Committee to
         approve the grant of an Option or Right or the making of a Restricted
         Stock Grant of the same size or with the same terms, conditions and/or
         restrictions to that employee in any other year or to any other
         employee in any year. The Committee shall not be precluded from
         approving the grant of an Option or Right or the making of a Restricted
         Stock Grant to any eligible employee solely because such employee may
         previously have been granted an Option or Right or may previously have
         received a Restricted Stock Grant.

         6. RIGHTS WITH RESPECT TO SHARES OF STOCK. A Participant who has
exercised an Option or Right (payable all or in part in Stock) or to whom a
Restricted Stock Grant has been made shall have, after a certificate or
certificates for the number of shares of Stock granted have been issued in his
name, absolute ownership of such shares including the right to vote the same and
receive dividends thereon; provided, however that rights with respect to shares
issued in connection with a Restricted Stock Grant shall be subject to the
terms, conditions and restrictions described in the Plan and in the instrument
evidencing the making of the Restricted Stock Grant to such Participant.

         7. EMPLOYMENT. In the absence of any specific agreement to the
contrary, no grant of an Option or Right or making of a Restricted Stock Grant
to a Participant under the Plan shall affect any right of the Company or its
Subsidiaries to terminate the Participant's employment at any time.

II.      OPTIONS

         1. GENERAL. Each employee chosen to receive an Option(s) may be granted
an Incentive Stock Option, a Non-Qualified Stock Option or both, subject to the
following terms, conditions and restrictions. Each Option granted under the Plan
shall be evidenced by an Option Agreement which shall contain such terms and
conditions consistent with the Plan as the Committee shall determine; provided,
however, that each Option shall satisfy the following requirements and each
Incentive Stock Option shall satisfy the requirement of Part II, Section 2:

           (a) Option Price. The option price for each share purchased under any
         Option shall be specified in the Option Agreement and, subject to the
         provisions of Part V, Section 3, shall not be less than Fair Market
         Value on the date the Option is granted; provided, however, that in no
         event shall the option price per share be less than the par value
         thereof.

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            (b) Option Period.

                  (i) General. The period in which an Option may be exercised
            shall not exceed ten years from the date the Option is granted;
            provided, however, that the Option may be sooner terminated in
            accordance with the provisions of this paragraph (b). Subject to the
            foregoing, the Committee may provide that any Option may be
            exercised, in whole or in part, at such time or times as the
            Committee may in its discretion determine.

                  (ii) Termination of Employment. If the Participant ceases to
            be an employee of the Company or a Subsidiary for any reason other
            than Retirement, Disability, or death, all of such Participant's
            outstanding Options shall immediately terminate.

                  (iii) Retirement or Disability. If a Participant's employment
            is terminated by Retirement or Disability, the term of any then
            outstanding Option held by the Participant shall extend for a period
            specified by the Committee in the agreement pertaining to such
            Option, and the number of shares in respect of which the Option may
            be exercised after the Participant's Retirement or Disability shall
            be determined by the agreement pertaining to such Option; provided,
            however, that such agreement shall provide that the Committee may
            cancel the Participant's Option during such period if the
            Participant's Retirement was without the consent of the Company, or
            if the Participant engages during such period of Retirement or
            Disability in employment or activities contrary, in the opinion of
            the Committee, to the best interests of the Company.

         2. INCENTIVE STOCK OPTIONS. Each Option Agreement evidencing an
Incentive Stock Option shall satisfy the requirement that to the extent that the
aggregate Fair Market Value of Stock with respect to which Incentive Stock
Options are exercisable for the first time by any Participant during any
calendar year (under the Plan and all stock option plans of the Company and its
Subsidiaries) exceeds $100,000, such Options shall be treated as Non-Qualified
Stock Options. For purposes of this Section 2, aggregate Fair Market Value of
Stock shall be determined as of the time the Option with respect to such Stock
is granted.

         3. DEATH. If a Participant's employment is terminated by death at a
time when he or she has not fully exercised any then outstanding Option, or if a
Participant dies after Retirement or Disability without having fully exercised
any then outstanding Option, the beneficiary designated by the Participant (or,
in the absence of such designation, the executors or administrators or legatees
or distributees of the Participant's estate) shall have the right to exercise
such Option in whole or in part during such period following the Participant's
death as is set forth in the Option Agreement. The Company shall prescribe the
procedures and requirements for beneficiary designations not inconsistent with
this provision and has the right to review and approve such designations.

         4. NONASSIGNABILITY. Each Option shall not be transferable (other than,
upon the death of the Participant, by beneficiary designation, by last will and
testament or by the laws of descent and distribution) and shall be exercisable
during the Participant's lifetime only by the Participant.

         5. PAYMENT FOR STOCK. Full payment in cash or, if the Committee
approves, in Stock, for shares purchased shall be made at the time of exercising
the Option in whole or in part. No certificates for shares so purchased shall be
issued until full payment therefor has been made, and a Participant shall have
none of the rights of a shareowner until such certificates are issued to him or
her. In addition, if the Committee approves, the Option Agreement may provide
that the Participant may elect, on terms set forth in the Option Agreement, to
have the Company withhold from the shares of Stock payable to the Participant
upon exercise of an Option the number of shares of Stock having a fair market
value equal to the amount of any required withholding taxes.

         6. USE OF PROCEEDS. The proceeds received by the Company from the sale
of Stock pursuant to the exercise of an Option may be used for general corporate
purposes.

         7. RESTRICTIONS UPON EXERCISE OF OPTION. The exercise of each Option
shall be subject to the condition that if at any time the Company shall
determine in its discretion that the satisfaction of withholding tax or other
withholding liabilities under any state or Federal law, or that the listing,
registration or qualification of any shares otherwise deliverable upon such
exercise upon any securities exchange or under any state or Federal law, or that
the

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consent or approval of any regulatory body, is necessary or desirable as a
condition of, or in connection with, such exercise or the delivery or purchase
of shares thereunder, then in any such event such exercise shall not be
effective unless such withholding, listing, registration, qualification, consent
or approval shall have been effected or obtained free of any conditions not
acceptable to the Company.

         8. REPRICING PROHIBITED. There shall be no grant of an Option(s) to a
Participant in exchange for a Participant's agreement to cancellation of a
higher-priced Option(s) that was previously granted to such Participant.

III.     STOCK APPRECIATION RIGHTS

         1. GENERAL. Each employee chosen to receive a Stock Appreciation
Right(s) may be granted a Tandem Stock Appreciation Right, a Non-Tandem Stock
Appreciation Right or both, subject to the following terms, conditions and
restrictions and subject to such additional terms, conditions and restrictions
as may be determined by the Committee from time to time hereafter; provided
however, that no Right shall be subject to additional terms, conditions or
restrictions which are more favorable to a Participant than the terms,
conditions and restrictions set forth in the Plan.

         2. TANDEM STOCK APPRECIATION RIGHTS. Each Tandem Stock Appreciation
Right may be granted only with respect to a share(s) of Stock for which an
Option(s) has been granted under the Plan, and may be awarded concurrently with
the grant of such Option or at any time thereafter while the Option is
outstanding. If the Committee so determines, a Tandem Stock Appreciation Right
may also be granted with respect to a share(s) of Stock for which an option has
been granted and is outstanding under any other plan of the Company. A Stock
Appreciation Right shall be evidenced by a Stock Appreciation Right Agreement
which shall contain such terms and conditions (which may include limitations as
to the time when such Stock Appreciation Right becomes exercisable and when it
ceases to be exercisable that are more restrictive than the limitations
applicable to the Related Option(s)) not inconsistent with the Plan as the
Committee shall determine; provided, however, that each Tandem Stock
Appreciation Right shall satisfy the following requirements:

                  (a) Termination of a Right. If the Related Option is
         exercised, in whole or in part, then the Right with respect to the
         shares of Stock purchased pursuant to such exercise (but not with
         respect to any unpurchased shares of Stock) shall terminate as of the
         date of the exercise. If an unexercised Right is otherwise exercisable
         on the date that the Related Option expires, and if the Fair Market
         Value of the shares of Stock with respect to which such Right was
         granted, determined as of the date of such expiration, exceeds the
         Option price of such shares, then, notwithstanding Section 2(b), the
         Right shall automatically be deemed to have been exercised as of the
         date of such expiration; otherwise, on the date that the Related Option
         expires, any outstanding Right related thereto shall be terminated as
         of the date of such expiration.

                  (b) Exercise. Tandem Stock Appreciation Rights may be
         exercised (i) only at such time or times as, and to the extent that,
         the Related Options shall be exercisable, (ii) only upon surrender of
         the Related Options with respect to the shares for which the Rights are
         then being exercised, and (iii) subject to the terms and conditions set
         forth in the Stock Appreciation Right Agreement; provided that no
         Tandem Stock Appreciation Right may be exercised prior to the
         expiration of six (6) months from the date of the grant and can only be
         exercised during the ten-day period beginning on the third business day
         following the release of the Company's quarterly or annual statement of
         sales and earnings.

         3. NON-TANDEM STOCK APPRECIATION RIGHTS. Each Non-Tandem Stock
Appreciation Right may be granted with respect to a share(s) of Stock or, if the
Committee so determines, in exchange for an outstanding Option or an outstanding
stock option granted under any other plan of the Company. A Non-Tandem Stock
Appreciation Right shall be evidenced by a Stock Appreciation Right Agreement
which shall contain such terms and conditions not inconsistent with the Plan as
the Committee shall determine; provided, however, that each Non-Tandem Stock
Appreciation Right shall satisfy the following requirements:

                  (a) Termination of a Right. A Non-Tandem Stock Appreciation
         Right shall terminate as of the earlier of (i) the date of exercise of
         such Right, to the extent that it is exercised; or (ii) the termination
         date

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         specified in the Stock Appreciation Right Agreement. If an unexercised
         Right is otherwise exercisable on the date that it expires, and if the
         Fair Market Value of the shares of Stock with respect to which such
         Right was granted, determined as of the date of such expiration,
         exceeds the exercise price of such Right (set forth in the Stock
         Appreciation Right Agreement), then the Right shall automatically be
         deemed to have been exercised as of the date of such expiration.

                  (b) Exercise. Non-Tandem Stock Appreciation Rights may be
         exercised in accordance with the terms and conditions set forth in the
         Stock Appreciation Right Agreement; provided that (i) no Non-Tandem
         Stock Appreciation Right that is payable all or in part in Stock may be
         exercised prior to the expiration of six (6) months from the date of
         the grant; (ii) the exercise price of any Non-Tandem Stock Appreciation
         Right granted in exchange for an outstanding Option or for an
         outstanding stock option granted under any other plan of the Company
         shall be the same exercise price as that outstanding Option or option
         and (iii) the exercise price of any Non-Tandem Stock Appreciation Right
         not granted in exchange for an outstanding Option or for an outstanding
         stock option granted under any other plan of the Company shall be the
         Fair Market Value of the Stock on the date of the grant of the
         Right(s).

         4.       PAYMENT.

                  (a) Amount. Upon the exercise of a Stock Appreciation Right, a
         Participant shall be entitled to receive the excess of the aggregate
         Fair Market Value of the shares of Stock with respect to which the
         Right is being exercised (determined as of the date of such exercise)
         over (i) the aggregate option price of such shares in the case of
         Tandem Stock Appreciation Rights; or (ii) the aggregate exercise price
         (set forth in the Stock Appreciation Right Agreement) in the case of
         Non-Tandem Stock Appreciation Rights.

                  (b) Form. Any amount which becomes payable upon exercise of a
         Stock Appreciation Right under the Plan shall be paid entirely in cash,
         entirely in Stock or partly in cash and partly in Stock in accordance
         with such terms and conditions as are provided in the applicable Stock
         Appreciation Right Agreement; provided, however, that notwithstanding
         any provision in any Stock Appreciation Right Agreement, the Committee
         may determine in its sole and absolute judgment that any amount which
         may become payable upon exercise of a Right shall be paid entirely in
         cash.

         5.       TERMINATION OF EMPLOYMENT.

                  (a) General. If a Participant ceases to be an employee of the
         Company or of a Subsidiary for any reason other than Retirement,
         Disability or death, all of such Participant's outstanding Rights shall
         immediately terminate.

                  (b) Retirement or Disability. If a Participant's employment is
         terminated by Retirement or Disability, the Participant's right to
         exercise all or any portion of any Right after the date of such
         Retirement or Disability shall be determined by the provisions of the
         Stock Appreciation Right Agreement; provided, however, that such
         Agreement shall provide that the Committee may terminate the
         Participant's Right prior to the date on which the Right is exercised
         if the Participant's Retirement was without the consent of the Company,
         or if the Participant engages during such period of Retirement or
         Disability in employment or activities contrary, in the opinion of the
         Committee, to the best interests of the Company.

                  (c) Death. If a Participant's employment is terminated by
         death at a time when the Participant has not fully exercised any then
         outstanding Rights, or if a Participant dies after Retirement or
         Disability without having fully exercised any then outstanding Rights,
         the beneficiary designated by the Participant (or, in the absence of
         such designation, the executors or administrators or legatees or
         distributees of the Participant's estate) shall have the right to
         exercise such Right in whole or in part during such period following
         the Participant's death as set forth in the Stock Appreciation Right
         Agreement. The Company shall prescribe the procedures and requirements
         for beneficiary designations not inconsistent with this provision and
         has the right to review and approve such designations.

         6. EXPIRATION. If the period in which a Stock Appreciation Right is
exercisable expires and the Right has not been exercised, then such Right shall
terminate as of the last day on which it was exercisable.

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         7. NONASSIGNABILITY. Each Right shall not be transferable (other than,
upon the death of the Participant, by beneficiary designation, by last will and
testament or by the laws of descent and distribution) and shall be exercisable
during the Participant's lifetime only by the Participant.

         8. RESTRICTIONS UPON EXERCISE OF RIGHTS. The exercise of each Right
shall be subject to the condition that if at any time the Company shall
determine in its discretion that the satisfaction of withholding tax or other
withholding liabilities under any state or Federal law, or that the consent or
approval of any regulatory body, is necessary or desirable as a condition of, or
in connection with, such exercise, then, in any such event, such exercise shall
not be effective unless such withholding, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Company.

IV.      RESTRICTED STOCK GRANTS

         1. GENERAL. A Restricted Stock Grant made under the Plan shall contain
the following terms, conditions and restrictions and such additional terms,
conditions and restrictions as may be determined by the Committee from time to
time hereafter; provided, however, that no Restricted Stock Grant shall be
subject to additional terms, conditions or restrictions which are more favorable
to a Participant than the terms, conditions and restrictions set forth in the
Plan.

         2. RESTRICTIONS. Subject to the provisions of Part IV, Section 3,
shares of Stock granted to a Participant pursuant to a Restricted Stock Grant:

                  (i) shall not be sold, assigned, conveyed, transferred,
         pledged, hypothecated, or otherwise disposed of, and

                  (ii) shall be returned to the Company forthwith, and all the
         rights of the Participant to such shares shall immediately terminate
         without any payment or consideration by the Company, if the
         Participant's continuous employment with the Company or any Subsidiary
         shall terminate for any reason, except as provided in Part IV, Section
         4. Such return of such Stock shall be accomplished by the Participant's
         delivering or causing to be delivered to the Secretary or any Assistant
         Secretary of the Company the certificate(s) for such shares of Stock,
         accompanied by such endorsement(s) and/or instrument(s) of transfer as
         may be required by the Secretary or any Assistant Secretary of the
         Company.

         3. LAPSE OF RESTRICTIONS.

                  (a) General. Subject to the provisions of Part IV, Sections
         3(b) and 4 and of Part V, Section 4, the restrictions set forth in Part
         IV, Section 2 shall lapse on such date or dates on or after the first
         anniversary and on or before the tenth anniversary of the date as of
         which the Restricted Stock Grant is made, as the Committee shall
         determine at the time of the Restricted Stock Grant.

                  (b) Performance Restricted Stock. If the Committee has
         designated the Stock covered by a Restricted Stock Grant as Performance
         Restricted Stock, then the Committee shall establish, at the time of
         the grant, the Performance Period, Performance Formula, Performance
         Measures and Performance Goals (all as defined in the Executive
         Incentive Compensation Plan for Corporate Executives) that would
         determine the extent to which restrictions set forth in Part IV,
         Section 2 shall lapse on any specified date. No restrictions shall
         lapse on any Performance Restricted Stock until the Committee
         certifies, in writing, that the requirements set forth in this Part IV,
         Section 3(b) have been satisfied.

                  (c) Forfeiture. All shares of Stock forfeited under this
         Section 3 shall be returned to the Company forthwith, and all the
         rights of the Participant to such shares shall immediately terminate
         without any payment or consideration by the Company.

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         4. TERMINATION OF EMPLOYMENT BY REASON OF DEATH OR DISABILITY. If a
Participant who has been in the continuous employment of the Company or of a
Subsidiary since the date as of which a Restricted Stock Grant was made to such
Participant shall, while in such employment, die or become Disabled and such
Participant's death or Disability shall occur more than one year after the date
as of which the Restricted Stock Grant was made to such Participant, then the
restrictions set forth in Part IV, Section 2 shall lapse as to all shares of
Restricted Stock granted to such Participant pursuant to such Restricted Stock
Grant on the date of such event. A Participant may file a written designation of
beneficiary to receive, in the event of the Participant's death, any shares for
which restrictions lapse on the date of death. The Company shall prescribe
procedures and requirements for beneficiary designations not inconsistent with
this provision and has the right to review and approve such designations.

         5. AGREEMENT BY EMPLOYEE REGARDING WITHHOLDING TAXES. Each Participant
shall agree that, subject to the provisions of Part IV, Section 6,

                  (i) no later than the date as of which the restrictions
         mentioned in Part IV, Section 2 and in the instrument evidencing the
         making of the Restricted Stock Grant shall lapse, such Participant will
         pay to the Company in cash, or, if the Committee approves, in Stock, or
         make other arrangements satisfactory to the Committee regarding payment
         of, any Federal, state or local taxes of any kind required by law to be
         withheld with respect to the shares of Stock subject to such Restricted
         Stock Grant, and

                  (ii) the Company and its Subsidiaries shall, to the extent
         permitted by law, have the right to deduct from any payment of any kind
         otherwise due to the Participant any Federal, state or local taxes of
         any kind required by law to be withheld with respect to the shares of
         Stock subject to such Restricted Stock Grant.

         6. ELECTION TO RECOGNIZE GROSS INCOME IN THE YEAR OF GRANT. If any
Participant properly elects, within thirty (30) days of the date of grant, to
include in gross income for Federal income tax purposes an amount equal to the
fair market value of the shares of Stock granted on the date of grant, such
Participant shall pay to the Company, or make arrangements satisfactory to the
Committee to pay to the Company in the year of such grant, any Federal, state or
local taxes required to be withheld with respect to such shares. If such
Participant shall fail to make such payments, the Company and its Subsidiaries
shall, to the extent permitted by law, have the right to deduct from any payment
of any kind otherwise due to the employee any Federal, state or local taxes of
any kind required by law to be withheld with respect to such shares.

         7. RESTRICTIVE LEGEND; CERTIFICATES MAY BE HELD IN CUSTODY. Each
certificate evidencing shares of Stock granted pursuant to a Restricted Stock
Grant shall, (i) if issued to any person other than the Company for safekeeping
while the restrictions apply, bear an appropriate legend referring to the terms,
conditions and restrictions applicable to such Restricted Stock Grant and (ii)
if issued to the Company for safekeeping while the restrictions apply, be noted
as restricted on the records of the transfer agent. Any attempt to dispose of
such shares of Stock in contravention of such terms, conditions and restrictions
shall be ineffective. The Committee may adopt rules which provide that the
certificates evidencing such shares may be held in custody by a bank or other
institution, or that the Company may itself hold such shares in custody, until
the restrictions thereon shall have lapsed.

         8. RESTRICTIONS UPON MAKING OF RESTRICTED STOCK GRANTS. The listing
upon the New York Stock Exchange or the registration or qualification under any
Federal or state law of any shares of Stock to be granted pursuant to Restricted
Stock Grants (whether to permit the making of Restricted Stock Grants or the
resale or other disposition of any such shares of Stock by or on behalf of the
employees receiving such shares) may be necessary or desirable as a condition of
or in connection with such Restricted Stock Grants and if, in any such event,
the Board in its sole discretion so determines, delivery of the certificates for
such shares of Stock shall not be made until such listing, registration or
qualification shall have been completed. In such connection, the Company agrees
that it will use its best effort to effect any such listing, registration or
qualification; provided, however, the Company shall not be required to use its
best efforts to effect such registration under the Securities Act of 1933 other
than on Form S-8, as presently in effect, or such other forms as may be in
effect from time to time calling for information comparable to that presently
required to be furnished under Form S-8.

         9. RESTRICTIONS UPON RESALE OF STOCK. If the shares of Stock that have
been granted to a Participant pursuant to the terms of the Plan are not
registered under the Securities Act of 1933, as amended, pursuant to an
effective registration statement, such Participant, if the Committee shall deem
it advisable, may be required to

<PAGE>

represent and agree in writing that (i) any shares of Stock acquired by such
employee pursuant to the Plan will not be sold except pursuant to an effective
registration statement under the Securities Act of 1933, as amended, or pursuant
to an exemption from registration under said Act and (ii) such Participant is
acquiring such shares of Stock for the Participant's own account and not with a
view to the distribution thereof.

V.       MISCELLANEOUS

         1. EFFECTIVE DATE. The Plan became effective on March 18, 1994, subject
to approval by shareowners before March 18, 1995.

         2. DURATION OF PLAN. Unless sooner terminated, the Plan shall remain in
effect until March 21, 2013. Termination of the Plan shall not affect any
Options or Rights previously granted, which Options or Rights shall remain in
effect until exercised, surrendered, or cancelled, or until they have expired,
all in accordance with their terms. Termination of the Plan shall not affect any
Restricted Stock Grants previously made, or Stock previously granted pursuant to
a Restricted Stock Grant; the terms, conditions and restrictions applicable to
shares issued pursuant to a Restricted Stock Grant shall remain in effect until
such terms, conditions and restrictions shall have lapsed all in accordance with
their terms.

         3. CHANGES IN CAPITAL STRUCTURE. In the event that there is any change
in the capital structure of the Company through merger, consolidation,
reorganization, recapitalization, spin-off or otherwise, or if there shall be
any dividend on the Company's Stock, payable in such Stock, or if there shall be
a Stock split or a combination of shares, then:

                  (i) the number of shares reserved for Options (both in the
         aggregate and with respect to each Participant) and the number of
         shares subject to outstanding Options and the price per share of each
         such Option;

                  (ii) the number of shares with respect to which Rights may be
         exercised (both in the aggregate and with respect to each Participant);
         and

                  (iii) the number of shares of Stock reserved for Restricted
Stock Grants under the Plan shall be proportionately adjusted by the Board as it
deems equitable, in its absolute discretion, to prevent dilution or enlargement
of the rights of a Participant and any shares issued pursuant to such change in
capital structure shall be subject to the same terms, conditions and
restrictions as the shares of Stock with respect to which newly issued shares
are issued. The issuance of Stock for consideration and the issuance of Stock
rights shall not be considered a change in the Company's capital structure. No
adjustment provided for in this Section 3 shall require the issuance of any
fractional share.

         4. CHANGE IN CONTROL. If while unexercised Options, Rights, or
Restricted Stock Grants remain outstanding under the Plan:

                  (i) any "person," as such term is used in Sections 13(d) and
         14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
         Act") (other than the Company, any trustee or other fiduciary holding
         securities under an employee benefit plan of the Company, or any
         company owned, directly or indirectly, by the shareowners of the
         Company in substantially the same proportions as their ownership of
         stock of the Company), is or becomes the "beneficial owner" (as defined
         in Rule 13d-3 under the Exchange Act), directly or indirectly, of
         securities of the Company representing 50% or more of the combined
         voting power of the Company's then outstanding securities; or

                  (ii) during any period of two consecutive years, individuals
         who at the beginning of such period constitute the Board, and any new
         director (other than a director designated by a person who has entered
         into an agreement with the Company to effect a transaction described in
         clause (i), (iii) or (iv) of this Section) whose election by the Board
         or nomination for election by the Company's shareowners was approved by
         a vote of at least two-thirds (2/3) of the directors then still in
         office who either were directors at the beginning

<PAGE>

         of the period or whose election or nomination for election was
         previously so approved, cease for any reason to constitute at least a
         majority thereof; or

              (iii)  (A) For grants prior to February 28, 2005, the shareowners
                     of the Company approve a merger or consolidation of the
                     Company with any other Company, other than (1) a merger or
                     consolidation which would result in the voting securities
                     of the Company outstanding immediately prior thereto
                     continuing to represent (either by remaining outstanding or
                     by being converted into voting securities of the surviving
                     entity) more than 50% of the combined voting power of the
                     voting securities of the Company or such surviving entity
                     outstanding immediately after such merger or consolidation
                     or (2) a merger or consolidation effected to implement a
                     recapitalization of the Company (or similar transaction) in
                     which no "person" (as hereinabove defined) acquires more
                     than 50% of the combined voting power of the Company's then
                     outstanding securities; and

                     (B) For grants on or after February 28, 2005, there is
                     consummation of a merger or consolidation of the Company
                     with any other Company, other than (1) a merger or
                     consolidation which would result in the voting securities
                     of the Company outstanding immediately prior thereto
                     continuing to represent (either by remaining outstanding or
                     by being converted into voting securities of the surviving
                     entity) more than 50% of the combined voting power of the
                     voting securities of the Company or such surviving entity
                     outstanding immediately after such merger or consolidation,
                     or (2) a merger or consolidation effected to implement a
                     recapitalization of the Company (or similar transaction) in
                     which no "person" (as hereinabove defined) acquires more
                     than 50% of the combined voting power of the Company's then
                     outstanding securities; or

              (iv) the shareowners of the Company approve a plan of complete
         liquidation of the Company or an agreement for the sale or disposition
         by the Company of all or substantially all of the Company's assets,

then (a) from and after the date of the first of the foregoing events to occur,
all Options and Rights held by active employees on such date shall be
exercisable in full, whether or not otherwise exercisable; and (b) on the date
of the first of the foregoing events to occur, the restrictions set forth in
Part IV, Section 2 on all outstanding Restricted Stock Grants, including
Performance Restricted Stock Grants, shall lapse.

         5. AMENDMENT OR TERMINATION. The Board may, by resolution, amend or
terminate the Plan at any time; provided, however, that

         (i) shareowner approval shall be required for any changes to the Plan
         which would require shareowner approval under the Delaware General
         Corporation Law, Rule 16b-3 of the Securities Exchange Act of 1934, as
         amended, or Section 162(m) of the Code; and

         (ii) the Board may not, without the written consent of the Participant,
         alter, impair or adversely affect any right of such Participant with
         respect to any Option or Right previously granted or Restricted Stock
         Grant previously made to such Participant under the Plan except as
         authorized herein.

Notwithstanding the foregoing, the Board may, by resolution, amend the Plan in
any way that it deems necessary or appropriate in order to make income with
respect to the Plan deductible for Federal income tax purposes under Section
162(m) of the Code without regard to the foregoing provisos (i) and (ii), and
any such amendment shall be effective as of such date as is necessary to make
such income under the Plan so deductible.

         6. UNFUNDED PLAN. The Plan shall be unfunded. Neither the Company nor
the Committee shall be required to segregate any assets that may at any time be
represented by Options or Rights under the Plan. Neither the Company nor the
Committee shall be deemed to be a trustee of any amounts to be paid under the
Plan. Any liability of the Company to any Participant with respect to a right
shall be based solely upon any contractual obligations created by the Plan or a
Stock Appreciation Right Agreement or Option Agreement; no such obligation shall
be deemed to be secured by any pledge or any encumbrance on any property of the
Company.

<PAGE>

VI.     CANCELLATION AND RESCISSION

        1.     COMPETITION; CONFIDENTIAL INFORMATION; TERMINATION FOR CAUSE

               (a) Unless an Option Agreement or a Stock Appreciation Right
         Agreement (any such agreement being referred to herein as an
         "Agreement") specifies otherwise, the Committee may

               (1) cancel at any time any unexercised Option or Right; or

               (2) rescind any exercise of an Option or Right;

        if the Participant is not in compliance with all other applicable
        provisions of the Agreement or the Plan or if, prior to any such
        exercise or within six months after such exercise, the Participant

               (i) engages in a Competing Business, as such term is defined in
               the Agreement; or

               (ii) solicits for employment, hires or offers employment to, or
               discloses information to or otherwise aids or assists any other
               person or entity other than the Company in soliciting for
               employment, hiring or offering employment to, any employee of the
               Company; or

               (iii) takes any action which is intended to harm the Company or
               its reputation, which the Company reasonably concludes could harm
               the Company or its reputation or which the Company reasonably
               concludes could lead to unwanted or unfavorable publicity to the
               Company;

               (iv) discloses to anyone outside the Company, or uses in other
               than the Company's business, any "confidential information", as
               such term is defined in the Agreement; or

               (v) is terminated by the Company for "cause".

               (b) Upon exercise of an Option or Right, the Participant shall
         certify on a form acceptable to the Committee that the Participant is
         in compliance with the terms and conditions of the Agreement and the
         Plan.

               (c) The Company shall immediately notify the Participant in
         writing of any cancellation of any unexercised Option or Right.
         Following issuance of such notice, the Participant shall have no
         further rights with respect to such Option or Right.

               (d) The Company shall notify the Participant in writing of any
         rescission of an exercise of an Option or Right within one year after
         the activity referred to in Part VI, Section 1(a). Within ten days
         after receiving such a notice from the Company, the Participant shall
         either (i) pay to the Company the excess of the fair market value of
         the Stock on the date of exercise of an Option over the exercise price
         for the Option or the fair market value of the Stock and/or cash
         distributed to the Participant as a result of the exercise of a Right
         or (ii) return the Stock received upon the exercise of an Option (in
         which case the Company will return the exercise price to the
         Participant) or return the Stock and/or cash distributed upon the
         exercise of a Right.

               (e) The term "cause" shall mean (i) an intentional act of fraud,
         embezzlement, theft or any other material violation of law in
         connection with the Participant's duties or in the course of the
         Participant's employment with the Company; or (ii) intentional damage
         to assets of the Company; or (iii) intentional disclosure of
         confidential information of the Company contrary to the policy of the
         Company; or (iv) breach of the Participant's obligations the Company;
         or (v) intentional engagement in any competitive activity which would
         constitute a breach of the Participant's duty of loyalty or of the
         Participant's obligations under any written contract of employment; or
         (vi) intentional breach of any policy of the Company; or (vii) the
         willful and continued failure by the Participant to substantially
         perform the Participant's duties with the

<PAGE>

         Company (other than any such failure resulting from the Participant's
         incapacity due to physical or mental illness); or (viii) the willful
         engaging by the Participant in conduct which is demonstrably and
         materially injurious to the Company, monetarily or otherwise.

         2. AGREEMENT BY PARTICIPANT REGARDING DEDUCTION. The Participant shall
agree and consent to a deduction from any amounts the Company owes to the
Participant from time to time (including amounts owed as wages or other
compensation, fringe benefits, or vacation pay, as well as any other amounts
owed to the Participant by the Company) to the extent of the amounts the
Participant owes the Company under this Part VI. Whether or not the Company
elects to make any set-off in whole or in part, if the Company does not recover
by means of set-off the full amount owned by the Participant, calculated as set
forth in this Part VI, then the Participant agrees to pay immediately the unpaid
balance to the Company.<PAGE>

                                                                    EXHIBIT 10.2

                            DEFERRED COMPENSTION PLAN
                            (Amended March 18, 2005)

SECTION 1. PURPOSE.

The purpose of this Plan is to provide an additional incentive to the key
employees of The May Department Stores Company and its subsidiaries to achieve
superior performance.

SECTION 2. DEFINITIONS.

(a) Board means the Board of Directors of May, as hereinafter defined.

(b) Committee means the Committee appointed to administer the Plan, as
hereinafter defined, as provided in Section 8 hereof.

(c) Common Stock means the Common Stock of May, as hereinafter defined.

(d) Corporation means May, as hereinafter defined, or any subsidiary of May
which is an employer of an Executive, as hereinafter defined, who is a
Participant, as hereinafter defined, in the Plan, as hereinafter defined.

(e) Executive means any individual employed by the Corporation in an executive
capacity who receives regular stated compensation in respect of such
employer-employee relationship other than a pension, retainer or fee under a
contract.

(f) Fiscal Year means the fiscal year of the Corporation as established from
time to time.

(g) May means The May Department Stores Company, a Delaware corporation, its
successors and assigns.

(h) Participant means an Executive who has been designated by the Committee as
eligible, and who has elected to participate in the Plan, as hereinafter
defined.

(i) Plan means the Deferred Compensation Plan of the Corporation, as described
herein.

(j) Restricted Stock means shares of Common Stock described in Section 10
hereof.

(k) Stock Unit means an accounting equivalent of one share of Common Stock.

(l) Stock Unit Account means an account on the records of the Corporation in
respect of Stock Units which have been and/or may be allocated to a Participant
in the manner hereinafter set forth.

SECTION 3. METHODS OF PAYMENT.

(a) Except as hereinafter provided, prior to the commencement of the calendar
year that includes the first day of a Fiscal Year, each Participant shall be
afforded the opportunity of making an election to have any one or more of the
following alternative methods of payment applied to all or a part of any portion
(which such portion shall not exceed one-half, unless specifically provided for
to the contrary in the participant's written contract of employment) of any
compensation of which such Participant shall be the recipient in respect of his
performance during such Fiscal Year:

     (i) Alternative (i): Payment of any such compensation that is paid in the
     form of a bonus on the first day of April next following the close of such
     Fiscal Year or on such subsequent date as the amount thereof is
     ascertainable.

<PAGE>

     (ii)Alternative (ii): Payment thereof at a deferred date or dates either in
     a lump sum or in annual installments, as may be determined by the
     Committee, such payment when made to include interest, as hereinafter
     provided, from the first day of April next following the Fiscal Year in
     respect of which the compensation was payable to the date of payment.

     (iii) Alternative (iii): [reserved]

     (iv)Alternative (iv): Payment thereof at a deferred date or dates either in
     a lump sum or in annual installments, as may be determined by the
     Committee, and either in cash or in Common Stock or in both cash and Common
     Stock, as may be determined by the Committee, in respect of Stock Units to
     be allocated to the Participant as hereinafter provided.

If any Participant shall fail to make an election with respect to any year, he
shall be deemed to have elected not to defer any portion of his compensation for
such year. Notwithstanding the requirements imposed by this paragraph (a) with
respect to the time by which an election must be made, an employee who is
designated by the Committee as a Participant for the first time may, within 60
days of such designation, make any election otherwise permitted under this
paragraph (a) with respect to the Participant's compensation in respect of
employment subsequent to the date on which the election is made.

(b) In connection with all determinations to be made by the Committee as
respects Alternative (ii) and, except for the determination of whether payment
thereunder is to be made in cash or in Common Stock or in both cash and Common
Stock (which determination shall be in the absolute discretion to the
Committee), Alternative (iv), the Participant shall be given an opportunity at
the time he makes his election of indicating his preferences, which preferences
shall be taken into account by the Committee in making its determinations.
Except as provided in Section 13 and Section 14 in no event shall payments under
Alternative (ii) or (iv) commence prior to the earliest of the Participant's
retirement, termination of employment or death (or prior to the occurrence of a
severe financial hardship, as provided below).

The Committee shall make its determination with respect to the payment schedule
(i.e., a lump sum payment or payments in annual installments) under Alternative
(ii) or (iv) prior to the commencement of the calendar year that includes the
first day of the Fiscal Year for which such alternative is elected. Except in
the event of a severe financial hardship, as provided below, the Committee's
determination with respect to a payment schedule shall become irrevocable as of
the first day of the calendar year that includes the first day of the Fiscal
Year for which the determination is made. However, upon the written request of
the Participant (or if applicable, the beneficiary or distributee) the payment
schedule may be revised by the Committee, in its absolute discretion, in the
event that the Participant (or if applicable, the beneficiary or distributee)
incurs a severe financial hardship. Such severe financial hardship must have
been caused by an accident, illness or other event which was beyond the control
of the Participant (or, if applicable, the beneficiary or distributee); and the
Committee shall revise the payment schedule that it had previously established
only to the extent that the Committee considers necessary to eliminate the
severe financial hardship. Notwithstanding the requirements imposed by this
paragraph (b) regarding the date by which the Committee must make a
determination with respect to the payment schedule under Alternative (ii) or
(iv) and the date as of which such determination shall become irrevocable
(except in the event of a severe financial hardship), when a Participant makes
an election pursuant to the last sentence of paragraph (a) of this Section 3,
the Committee shall make its determination with respect to the payment schedule
at any time prior to the date as of which the Participant's election becomes
effective, and its determination shall become irrevocable (except in the event
of a severe financial hardship) as of such effective date.

(c) In the case of a Participant who elects to have all or any part of his
compensation for a particular Fiscal Year paid under Alternative (iv), Stock
Units shall be allocated to such Participant by crediting the same to his Stock
Unit Account, and the number of Stock Units to be so credited for such Fiscal
Year shall be the sum of the following:

     (i) the quotient, disregarding fractions, resulting from dividing the
     dollar amount of such portion of the Participant's compensation as is to be
     so applied to Alternative (iv) by the average closing price of the Common
     Stock on the New York Stock Exchange during the month of February ending in
     the Fiscal Year next following the Fiscal Year in respect of which such
     compensation was payable; plus

<PAGE>

     (ii)the quotient, disregarding fractions, resulting from dividing the
     aggregate dollar amount of cash dividends which would have been paid to the
     Participant during such Fiscal Year had the Stock Units standing in his
     Stock Unit Account from time to time during such Fiscal Year been shares of
     Common Stock by the average closing price of the Common Stock on the New
     York Stock Exchange during the month of February ending in the year next
     following such Fiscal Year; plus

     (iii) the number of shares of Common Stock, disregarding fractions, which
     would have been received by the Participant as stock dividends during such
     Fiscal Year had the Stock Units standing in his Stock Unit Account at the
     date or dates of payment of such stock dividend(s) been shares of Common
     Stock.

Any allocation of Stock Units to a Participant's Stock Unit Account required to
be made pursuant to this paragraph (c) shall be made as of the first day of
April next following the Fiscal Year in respect of which such compensation was
payable or such dividends were paid, as the case may be. The aggregate value of
the fraction or fractions remaining after making the applicable calculations
referred to in subparagraphs (c)(i), (c)(ii) and (c)(iii) of this Section 3
(based upon the average closing price of Common Stock on the Composite Tape for
New York Stock Exchange listed companies as reported in the Wall Street Journal,
or such other source as the Committee deems reliable, during the month of
February next preceding such month of April), shall not be converted into Stock
Units but shall be allocated and added to the amount elected by the Participant
to be paid to him under Alternative (ii) above, or, if the Participant shall
have made no such election under Alternative (ii), then such remaining amount
shall be paid to the Participant as if he had made an election under Alternative
(i) above to be so paid.

(d) Notwithstanding the provisions of Section 3(c) to the contrary, in the event
of a recapitalization of May pursuant to which the outstanding shares of Common
Stock shall be changed into a greater or smaller number of shares (including,
without limitation, a stock split or a stock dividend of 25% or more of the
number of outstanding shares of Common Stock), the number of Stock Units
credited to a Participant's Stock Unit Account shall be appropriately adjusted
as of the effective date of such recapitalization.

(e) Interest to be paid under Alternative (ii) shall be credited annually as of
April 1 of each year and shall be at the following rates:

     (i) to and including March 31, 1974, the rate shall be 3%, compounded
     annually, and

     (ii)after March 31, 1974, the rate shall be equal to the average yield on
     long-term United States Government Bonds (as determined by the Board of
     Governors of the Federal Reserve Board and published in the Federal Reserve
     Bulletin) for the calendar year prior to said April 1, compounded annually,
     provided, however, that if the method of calculation of such average yield
     shall be changed, or if the determination and/or the publication thereof be
     discontinued, then the Committee shall substitute therefor such alternative
     method of determining such interest rate as it, in its discretion, shall
     deem appropriate.

(f) Prior to the commencement of a specified period of time, the Corporation may
credit a Participant with a bonus ("Contingent Bonus") with respect to his
employment during such period of time. The Contingent Bonus will be subject to
forfeiture for such period as the Committee may determine and upon such terms
and conditions as the Committee may establish, either by adopting resolutions of
general applicability or by making individual determinations on a case-by-case
basis. Prior to the date on which a Contingent Bonus is credited with respect to
a Participant, the Committee will give the Participant an opportunity to elect
that one or more of the alternative methods of payment provided for in Section
3(a)(ii) and (iv) shall be applied to all or a portion of such Contingent Bonus,
both with respect to the period during which the Contingent Bonus is forfeitable
and with respect to the period after the forfeiture provisions lapse. The
forfeiture provisions that are applied to a Contingent Bonus in accordance with
this paragraph (f) shall also be applicable to any increments thereon under
Alternative (ii) or (iv). In the event that no election is made with respect to
a Contingent Bonus (or portion thereof) for the period after the forfeiture
provisions lapse, then such Contingent Bonus (or portion thereof) shall be
distributed under Alternative (i) upon the lapse of the forfeiture provisions.

<PAGE>

SECTION 4. LIMITATION OF STOCK UNITS.

In no event shall the aggregate number of Stock Units allocated under this Plan
in respect of compensation for any Fiscal Year exceed a number equal to 2 of 1%
of the total number of shares of Common Stock outstanding at the close of such
Fiscal Year (inclusive of any Restricted Stock then outstanding).

SECTION 5. DISTRIBUTION FROM THE STOCK UNIT ACCOUNT.

(a) Distribution from a Participant's Stock Unit Account shall be made in
accordance with the determinations made by the Committee, as in this Plan
provided. Stock Units shall be adjusted from time to time in accordance with
this Plan until all distributions to which a Participant is entitled hereunder
shall have been made.

(b) If the Committee determines that distribution to a Participant is to be made
in annual installments, the Committee may determine from time to time whether
each particular installment shall be distributed in cash or in Common Stock or
in both cash and Common Stock.

(c) If the Committee determines that a distribution to a Participant is to be
made in a lump sum in Common Stock, the number of shares of Common Stock to be
so distributed to such Participant shall equal the number of Stock Units then in
his Stock Unit Account. For the purpose of determining the number of shares of
Common Stock to be distributed on a particular annual installment distribution
date, the Committee shall make its calculations as if that annual installment
and all subsequent annual installments were in fact to be made in shares of
Common Stock, as follows: the number of shares of Common Stock which would be
then so distributable, except in the case of the last distribution, shall be
equal to the product, disregarding fractions, of the total number of Stock Units
then credited to the Participant's Stock Unit Account, multiplied by a fraction,
the numerator of which shall be one and the denominator of which shall be the
number of remaining installments; and in the case of the last distribution,
shall be the number of shares of Common Stock equal to the Stock Units then
remaining in the Participant's Stock Unit Account. The Participant's Stock Unit
Account shall be decreased by one Stock Unit for each share of Common Stock
distributed to a Participant.

(d) If the Committee determines that a particular distribution to a Participant
is to be made in cash, a computation shall first be made of the number of shares
of Common Stock which would then be distributable pursuant to paragraph (c) of
this Section 5 if such distribution were to be made in shares of Common Stock.
The number of shares thus determined shall then be converted into cash in
respect of each such distribution by valuing such shares at the average closing
price of the Common Stock on the New York Stock Exchange during the month of
February next preceding the date of such distribution, and the resulting amount
of cash shall be distributed to the Participant. The Participant's Stock Unit
Account shall then be decreased by one Stock Unit for each share of Common Stock
which would have been distributed to the Participant had such cash distribution
been made in shares of Common Stock.

(e) If the Committee determines that a distribution is to be made in part in
Common Stock and in part in cash, paragraphs (c) and (d) of this Section 5 shall
be applied separately to the respective parts of such distribution and to the
respective parts of the Stock Unit Account with respect to which the
distribution is to be made.

SECTION 6. DEATH OF PARTICIPANT.

In the event of the death of a Participant prior to complete distribution under
Alternatives (ii) and/or (iv) hereof, all cash and/or Stock Units then remaining
undistributed, or which shall thereafter become distributable to him pursuant to
such Alternatives, shall be distributed to such beneficiary as the Participant
shall have designated in writing to the Corporation, or, in the absence of such
designation, to his personal representative. Such distribution shall be made at
such date or dates either in a lump sum or in annual installments, as may be
determined by the Committee prior to the beginning of the calendar year that
includes the first day of the Fiscal Year for which alternative is elected (or,
where applicable, the date specified by the last sentence of Section 3(b));
provided, however, that in the event of a severe financial hardship, the
Committee may subsequently revise its determination in accordance with the
applicable provisions of Section 3(b).

<PAGE>

SECTION 7. PARTICIPANT'S RIGHT UNSECURED; INVESTMENTS.

The right of a Participant to receive any distribution hereunder shall be an
unsecured claim against the general assets of the Corporation. Nothing in this
Agreement shall require the Corporation to invest any amount, the payment of
which has been deferred under Alternative (iv), in Common Stock or in any other
medium.

SECTION 8. ADMINISTRATION OF THE PLAN--COMMITTEE.

(a) The Plan shall be administered by a Committee of not less than three nor
more than five persons designated by the Board (which may, but need not, be the
compensation committee of the Board), all of whom shall be directors of the
Corporation and shall serve at the pleasure of the Board. In no event shall any
member of the Committee be a Participant. The Committee shall act by vote or
written consent of a majority of its members. The Plan may be amended, modified
or terminated by the Board, except that no change may be made without the
approval of the Common Shareowners of May (i) in the maximum number of shares or
Stock Units deliverable or allocable in respect of any Fiscal Year under the
plan or (ii) in the provisions of subparagraphs (c)(i) and (c)(ii) of Section 3
of this Plan relating to the method of determining the number of Stock Units
allocable to a Participant.

(b) The Committee shall prescribe such forms as it considers appropriate for the
administration of the Plan. The forms shall set forth such terms and conditions
not inconsistent with the terms of the Plan as the Committee may determine and
shall designate:

     (i) the alternative or alternatives elected by the Participant pursuant to
     Section 3(a);

     (ii)the Committee's determination of the time or times when payment of such
     compensation will be made to the Participant pursuant to Section 3(b)(in
     the absence of a severe financial hardship);

     (iii) the beneficiary (if any) designated by the Participant pursuant to
     Section 6; and

     (iv)the Committee's determination of the time or times when payment of such
     compensation will be made after the Participant's death pursuant to Section
     6 (in the absence of a severe financial hardship).

SECTION 9. SUCCESSORS.

The provisions of the Plan with respect to each Participant shall bind the
legatees, heirs, executors, administrators or other successors in interest of
such Participant.

SECTION 10. RESTRICTED STOCK.

With respect to Fiscal Years ending prior to February 1, 1970, Participants were
entitled to elect a method of payment in shares of fully paid and non-assessable
Common Stock of May ("Restricted Stock"), the transfer of which such shares was
restricted. The following terms and conditions shall continue to apply to shares
of Restricted Stock:

(a) Such shares in the hands of the Participant will be subject to the
restrictions that they may not be sold, assigned, transferred, discounted or
pledged as collateral for a loan or as security for the performance of any
obligation or for any purpose by the Participant without the prior written
consent of the Committee. Such restrictions shall expire with respect to such
shares at the time or times determined by the Committee and specified on the
legend affixed to the certificate therefor.

(b) Any Participant to whom Restricted Stock is issued shall have all the rights
of a shareowner with respect to such stock including, without limitation, the
right to receive the dividends and to vote the same, subject only to the
restrictions on transfer set forth in paragraph (a) of this Section 10.

(c) There shall be imprinted on each certificate for shares of Restricted Stock
delivered to a Participant the appropriate legend setting forth the substance of
the restriction. In the event that there becomes issuable to a Participant a
substitute certificate or an additional certificate by reason of any corporate
reorganization,

<PAGE>

recapitalization, stock dividend or like corporate change, any share represented
by such substitute certificate or additional certificate shall be subject to the
same restriction as the share in respect of which it was issued and the
certificate evidencing the same shall be similarly stamped.

(d) In the granting of any consent by the Committee to release Restricted Stock
from the aforesaid restrictions, the Committee shall be governed by the basic
purpose of the Plan to provide an additional incentive to the Participants, and
in no event shall the Committee consent to any such change in the absence of
illness, accident or other form of hardship.

(e) In the event of the death of a Participant, any shares of Restricted Stock
registered in his name may, notwithstanding the restriction on the transfer
thereof, be transferred pursuant to his will or the laws of descent and
distribution; it being understood, however, that such shares in the hands of the
transferee shall be subject to the same restriction as was applicable to their
transfer by the Participant.

SECTION 11. ALIENATION.

(a) Subject to the provisions of Section 6 and paragraph (b) of this Section 11,
no amount, the payment of which as been deferred under Alternative (ii) or (iv),
shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, levy or charge, and any attempt to so
anticipate, alienate, sell, transfer, assign, pledge, encumber, levy or charge
the same shall be void; nor shall any such amount be in any manner liable for or
subject to the debts, contracts, liabilities, engagements or torts of the person
entitled to such benefit.

(b) Nothing in this Section 11 shall prohibit the personal representative of a
Participant from designating that any amount be distributed in accordance with
the terms of the Participant's will or pursuant to the laws of descent and
distribution.

SECTION 12. WITHHOLDING.

There shall be deducted from all amounts paid under this Plan any taxes required
to be withheld by any federal, state or local government. The Participants and
their beneficiaries, distributees and personal representatives will bear any and
all federal, foreign, state, local or other income or other taxes imposed on
amounts paid under this Plan as to which no amounts are withheld, irrespective
of whether withholding is required.

SECTION 13. DISCRETIONARY PAYMENT.

(a) Notwithstanding any other provision in any other Section of the Plan to be
contrary, the Committee may, in its sole and absolute discretion, direct an
immediate payment of cash, distribution of Stock and/or release of restrictions
on Restricted Stock with respect to amounts (except those referred to in the
next proviso) previously deferred under this Plan if the Committee determines
that such action is in the best interests of May, the Participants and their
beneficiaries; provided, however, that the Committee may not direct an immediate
payment, distribution and/or release with respect to amounts deferred pursuant
to elections filed on or before October 1, 1985, by a Participant unless such
Participant shall have consented, during the period, not to exceed thirty (30)
days, designated by the Corporation and communicated to all such Participants,
to the application of this Section 13 to such amounts (which consent, once
given, shall be irrevocable).

(b) In the event that the Committee shall so direct an immediate payment,
distribution and/or release in accordance with Section 13(a), then

     (i) the amounts of cash and the numbers of shares of Stock to be so paid
     and/or distributed shall be determined by the Committee so as to reflect
     fairly and equitably appropriate interest and dividends since the preceding
     April 1 and so as to reflect fairly and equitably such other facts and
     circumstances as the Committee deems appropriate, including, without
     limitation, recent price of the Stock;

     (ii) amounts which were otherwise deferred or to be deferred with respect
     to the Fiscal Year or long-term period in which such payment or
     distribution occurs shall be paid when otherwise payable (such amounts
     which

<PAGE>

     would otherwise have been payable prior to the date of such payment or
     distribution shall be paid as soon as practicable thereafter);

     (iii) in the event that cash is not paid or made available to a Participant
     when otherwise due or that shares of Stock are not distributed or otherwise
     made available to a Participant when otherwise due, then such Participant
     may file a claim for such payment or distribution and, if such Participant
     is successful, then the Corporation shall reimburse such Participant for
     reasonable attorneys' fees actually paid by the Participant in enforcing
     such Participant's rights to such payment or distribution; and

     (iv)in the event that cash is not paid or made available to a Participant
     when otherwise due, then interest will accrue with respect to such unpaid
     amount from the date it was otherwise due until the date it is actually
     paid at a rate equal to two percentage points over the prime rate as in
     effect from time to time, as determined in good faith by the Committee
     based on the prime rate charged from time to time by major banks in the
     City of New York.

SECTION 14. CHANGE IN CONTROL.

Notwithstanding any other provision in any other Section of this Plan to the
contrary,

     (i) the value of all amounts deferred by a Participant which have not yet
     been credited to the Participant's accounts under this Plan and

     (ii)the value of all of a Participant's accounts under this Plan shall be
     paid to such Participant in each case in a lump sum cash payment on the
     occurrence of a Change in Control of the Corporation or as soon thereafter
     as practicable, but in no event later than five days after the Change in
     Control of the Corporation, and

     (iii) restrictions on all Restricted Stock, as defined in Section 10 of
     this Plan shall lapse upon the occurrence of a Change in Control of the
     Corporation.

The amounts of cash credited to each Participant's accounts prior to determining
the amount of cash to be paid from these accounts shall be determined by the
Committee (which, for this purpose, shall be comprised of members of the Board
prior to the Change in Control of the Corporation) so as to reflect fairly and
equitably appropriate interest and dividends since the preceding April 1 and so
as to reflect fairly and equitably such other facts and circumstances as the
Committee deems appropriate, including, without limitation, recent price of the
stock. For purposes of payments under this Section 14, the value of a Stock Unit
shall be computed as the greater of (a) the closing price of shares of Common
Stock on the Composite Tape for New York Stock Exchange listed companies as
reported in the Wall Street Journal, or such other source as the Committee deems
reliable, on or nearest the date on which the Change in Control is deemed to
occur (or, if not listed on such exchange, on a nationally recognized exchange
or quotation system on which trading volume in the Common Stock is highest) or
(b) the highest per share price for shares of Common Stock actually paid in
connection with any Change in Control. Notwithstanding the above, if, prior to
December 28, 2005, the shareowners of the Corporation have approved an Agreement
and Plan of Merger relating to a Change in Control, but the effective time of
the Change in Control has not occurred as of that date, then all outstanding
balances under the Plan shall be distributed prior to the end of calendar year
2005, with Stock Units being valued for this purpose as if the closing date for
the Change in Control had occurred on December 28, 2005.

For purposes of this Plan, a "Change in Control of the Corporation" shall be
deemed to have occurred if

(a) any "person" as such term is used in Section 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") (other than the
Corporation, any trustee or other fiduciary holding securities under an employee
benefit plan of the Corporation, or any company owned, directly or indirectly,
by the shareowners of the Corporation in substantially the same proportions as
their ownership of stock of the Corporation), is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under Exchange Act), directly or indirectly of
securities of the Corporation representing 50% or more of the combined voting
power of the Corporation's then outstanding securities;

<PAGE>

(b) during any period of two consecutive years, individuals who at the beginning
of such period constitute the Board, and any new director (other than a director
designated by a person who has entered into an agreement with the Corporation to
effect a transaction described in clause (a), (c) or (d) of this Section whose
election by the Board or nomination for election by the Corporation's
shareowners was approved by a vote of at least two-thirds (2/3) of the directors
then still in office who either were directors at the beginning of the period or
whose election or nomination for election was previously so approved cease for
any reason to constitute at least a majority thereof;

(c) consummation of a merger or consolidation of the Corporation with any other
company, other than (1) a merger or consolidation which would result in the
voting securities of the Corporation outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than 50% of the combined
voting power of the voting securities of the Corporation or such surviving
entity outstanding immediately after such merger or consolidation, or (2) a
merger or consolidation effected to implement a recapitalization of the
Corporation (or similar transaction) in which no "person" (as hereinabove
defined) acquires more than 50% of the combined voting power of the
Corporation's then outstanding securities; or

(d) the shareowners of the Corporation approve a plan of complete liquidation of
the Corporation or an agreement for the sale or disposition by the Corporation
of all or substantially all of the Corporation's assets.

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