Document:

Macy's Retail Holdings, Inc., as Issuer

and 

Macy's
Inc., as
Guarantor

and

U.S.
Bank National Association, as Trustee

FOURTH SUPPLEMENTAL TRUST INDENTURE

Dated as of August 31, 2007

Supplementing that certain

Indenture

Dated as of November 2, 2006, as supplemented
by 

the First Supplemental Indenture dated as of
November 29, 2006, 

the Second Supplemental Indenture dated as of March
12, 2007, and 

the Third Supplemental Indenture dated as of March
12, 2007

Authorizing the Issuance and Delivery of Senior Securities

consisting
of

$350,000,000 aggregate
principal amount of 5.875%
Senior Notes Due 2013

TABLE OF
CONTENTS

Page

RECITALS....................................................................................................................................... 1

[Form of Face of Security]................................................................................................................ 2

[Form of Reverse of Security]............................................................................................................ 4

ARTICLE I.   ISSUANCE OF SENIOR NOTES............................................................................ 8

Section 1.1.   Issuance Of Senior Notes; Principal
Amount; Maturity; Additional Senior Notes. 8

Section 1.2.   Interest On The Senior Notes; Payment
Of Interest........................................... 9

Section 1.3.   Execution, Authentication And
Delivery Of Securities...................................... 10

ARTICLE II.   CERTAIN DEFINITIONS..................................................................................... 10

Section 2.1.   Certain Definitions.......................................................................................... 10

ARTICLE III.   CERTAIN COVENANTS.................................................................................... 18

Section 3.1.   Liens.............................................................................................................. 18

Section 3.2.   Sale And Leaseback Transactions.................................................................. 18

Section 3.3.   Permitting Unrestricted Subsidiaries
To Become Restricted Subsidiaries.......... 20

Section 3.4.   Payment Office.............................................................................................. 20

ARTICLE IV.   ADDITIONAL EVENTS OF DEFAULT.............................................................. 20

Section 4.1.   Additional Events Of Default.......................................................................... 20

ARTICLE V.   DEFEASANCE...................................................................................................... 21

Section 5.1.   Applicability Of Article V Of The
Indenture.................................................... 21

ARTICLE VI.   REDEMPTION OF SENIOR NOTES.................................................................. 21

Section 6.1.   Right Of Redemption...................................................................................... 21

ARTICLE VII.   CHANGE OF CONTROL.................................................................................. 22

Section 7.1.   Repurchase At The Option Of Holders........................................................... 22

ARTICLE VIII.   MISCELLANEOUS........................................................................................... 22

Section 8.1.   Reference To And Effect On The
Indenture.................................................... 22

Section 8.2.   Waiver Of Certain Covenants......................................................................... 23

Section 8.3.   Supplemental Indenture May Be
Executed In Counterparts............................. 23

Section 8.4.   Effect Of Headings......................................................................................... 23

     Fourth
Supplemental Indenture, dated as of August 31, 2007, among Macy's Retail Holdings, Inc. (formerly known as
Federated Retail Holdings, Inc.), a corporation duly organized and existing
under the laws of the State of New York, as issuer (the "Company"),
Macy's, Inc. (formerly known as Federated Department Stores, Inc.), a
corporation duly organized and existing under the laws of the State of
Delaware, as guarantor (the "Guarantor"), and U.S. Bank National
Association, a national banking association duly incorporated under the laws of
the United States of America, as Trustee (the "Trustee"), supplementing
that certain Indenture, dated as of November 2, 2006, as supplemented by the
First Supplemental Indenture dated as of November 29, 2006, the Second
Supplemental Indenture dated as of March 12, 2007 and the Third Supplemental
Indenture dated as of March 12, 2007, among the Company, the Guarantor and the
Trustee (the "Indenture"). 

RECITALS

     A.            
The Company has duly authorized the execution and delivery of the
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes, or other evidences of indebtedness (the "Securities")
to be issued in one or more series as provided for in the Indenture.

     B.            
The Guarantor has fully and unconditionally guaranteed, to the
extent set forth in the Indenture and subject to the provisions of the
Indenture, the due and punctual payment of each series of Securities issued
thereunder.

     C.            
The Indenture provides that the Securities of each series shall
be in substantially the form set forth in the Indenture, or in such other form
as may be established by or pursuant to a Board Resolution or in one or more
indentures supplemental thereto, in each case with such appropriate insertions,
omissions, substitutions, and other variations as are required or permitted by
the Indenture, and may have such letters, numbers, or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution thereof.

     D.            
The Company shall issue and deliver, and the Trustee shall
authenticate, Securities denominated "5.875%
Senior Notes Due 2013" (the "Senior Notes") pursuant to the terms of this
Supplemental Indenture and substantially in the form set forth below, in each
case with such appropriate insertions, omissions, substitutions, and other
variations as are required or permitted by the Indenture and this Supplemental
Indenture, and with such letters, numbers, or other marks of identification and
such legends or endorsements placed thereon as may be required to comply with
the rules of any securities exchange or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution of such Securities.

[Form of Face of Security]

     This Security is a Global Security within the meaning of
the Indenture hereinafter referred to and is registered in the name of a
Depositary or a nominee thereof. This Security may not be transferred to, or
registered or exchanged for Securities registered in the name of any Person
other than the Depositary or a nominee thereof, and no such transfer may be
registered, except in the limited circumstances described in the Indenture.
Every Security authenticated and delivered upon registration of transfer of, or
in exchange for or in lieu of, this Security shall be a Global Security subject
to the foregoing, except in such limited circumstances.

Macy's Retail Holdings, Inc.

5.875% Senior
Notes Due 2013

Guaranteed As To Payment Of
Principal, Premium, If Any, And Interest By 

Macy's, Inc.

No. __                                                                                                                         $___________

Cusip No.
55616X AD9

     Macy's Retail
Holdings, Inc., a corporation duly organized and existing under the laws
of the State of New York (hereinafter called the "Company", which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of $__________ on January
15, 2013 and to pay interest thereon from August 31, 2007 or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, semiannually on January 15 and July 15 of each year, commencing on January 15, 2008, at the rate of 5.875% per annum, until the
principal hereof is paid or made available for payment. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in such Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which will be the January 1 or July 1 (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof will be given to Holders of
Securities of this series not less than 10 calendar days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities of
this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture.

     Macy's, Inc.,
a corporation duly organized and existing under the laws of the State of
Delaware (hereinafter called the "Guarantor", which term includes any
successor Person under the Indenture hereinafter referred to), has fully and
unconditionally guaranteed, to the extent set forth in the Indenture and
subject to the provisions of the Indenture, the due and punctual payment of
each series of Securities issued thereunder (the "Guarantee"). The
obligations of the Guarantor to the Holders and to the Trustee pursuant to the
Guarantee are expressly set forth in Article XII of the Indenture and reference
is hereby made to the Indenture for the precise terms of the Guarantee.

     Subject, in the case of any Global Security, to any
applicable requirements of the Depositary, payment of the principal of and any
such interest on this Security will be made at the office or agency of the
Company maintained for the purpose in New York, New York, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that
at the option of the Company payment of interest may be made by check mailed to
the address of the Person entitled thereto as such address appears in the
Security Register.

     Reference is hereby
made to the further provisions set forth on the reverse hereof. Such provisions
will for all purposes have the same effect as though fully set forth in this
place.

     This Security will not be valid or become obligatory for
any purpose until the certificate of authentication herein has been signed
manually by the Trustee under said Indenture.

     In Witness Whereof,
the Company has caused this instrument to be duly executed in accordance
with the Indenture.

Macy's Retail Holdings, Inc.

	
  Date Issued:

  	
  By:                                                                                

  
	
  Attest:

  	

  
	
  By:                                                              

  	

  

     The Guarantor has fully and unconditionally guaranteed, to
the extent set forth in the Indenture and subject to the provisions of the
Indenture, the due and punctual payment of each series of Securities issued
thereunder.  In case of the failure of the Company punctually to make any such
payment, the Guarantor hereby agrees to cause such payment to be made
punctually.

     The obligations of the Guarantor to the Holders and to the
Trustee pursuant to the Guarantee are expressly set forth in Article XII of the
Indenture and reference is hereby made to the Indenture for the precise terms
of the Guarantee.

     In Witness Whereof,
the Guarantor has caused this instrument to be duly executed in accordance
with the Indenture.

Macy's, Inc.

	
  Date Issued:

  	
  By:                                                                       

  
	
  Attest:

  	

  
	
  By:                                                              

  	

  
	

  	

  

[Form of Reverse of Security]

Macy's
Retail Holdings, Inc.

     This Security is one of a duly authorized issue of
securities of the Company (herein called the "Securities") issued and to
be issued in one or more series under an Indenture, dated as of November 2,
2006 (herein called the "Base Indenture"), by and among the
Company, Macy's, Inc., as guarantor (the "Guarantor"), and U.S. Bank
National Association, as Trustee (herein called the "Trustee", which
term includes any successor trustee under the Indenture), as amended and
supplemented by the Fourth Supplemental Indenture, dated as of August 31, 2007 among the Company, the Guarantor
and the Trustee (the "Supplemental Indenture" and, together with the
Base Indenture, the "Indenture"), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties, and immunities thereunder of the
Company, the Guarantor, the Trustee, and the Holders of the Securities and of
the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof,
initially limited in aggregate principal amount to $350,000,000. Subject to
compliance with Section 1.1(c) of the Supplemental Indenture, the Company
is permitted to issue Additional Senior Notes under the Indenture in an
unlimited principal amount.  Any such Additional Senior Notes that are actually
issued shall be treated as issued and outstanding Securities of this series for
all purposes of the Indenture, unless the context clearly indicates otherwise.

     The Securities of this series are redeemable in whole or
in part, at the option of the Company at any time and from time to time, on not
less than 30 or more than 60 days' prior notice mailed to the Holders of the
Securities of this series, at a Redemption Price equal to the greater of (i)
100% of the principal amount of the Securities of this series to be redeemed
and (ii) the sum of the present values of the Remaining Scheduled Payments
thereon discounted to the Redemption Date on a semiannual basis (assuming a
360-day year consisting of twelve 30-day months) at the Treasury Rate plus 25 basis
points, together in either case with accrued interest on the principal amount
being redeemed to the Redemption Date.

     "Comparable Treasury Issue" means the United States
Treasury security selected by an Independent Investment Banker that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Securities of this series. "Independent
Investment Banker" means one of the Reference Treasury Dealers appointed by
the Company.

     "Comparable Treasury Price" means, with respect to
any Redemption Date, (i) the average of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) on the third business day preceding such Redemption Date, as set forth
in the daily statistical release (or any successor release) published by the
Federal Reserve Bank of New York and designated "Composite 3:30 p.m. Quotations
for U.S. Government Securities" or (ii) if such release (or any successor
release) is not published or does not contain such prices on such business day,
(a) the average of the Reference Treasury Dealer Quotations for such Redemption
Date, after excluding the highest and lowest of such Reference Treasury Dealer
Quotations, or (b) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Quotations.

     "Reference Treasury Dealer" means each of Credit
Suisse Securities (USA) LLC, Banc of America Securities LLC, J.P. Morgan
Securities Inc. and their respective successors and one other nationally
recognized investment banking firm that is a primary U.S. Government securities
dealer in New York City (a "Primary Treasury Dealer") specified from
time to time by the Company, except that if any of the foregoing ceases to be a
Primary Treasury Dealer, the Company is required to designate as a substitute
another nationally recognized investment banking firm that is a Primary
Treasury Dealer.

     "Reference Treasury Dealer Quotations" means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average,
as determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer as of 3:30
p.m., New York City time, on the third Business Day preceding such Redemption
Date.

     "Remaining Scheduled Payments" means, with respect
to each Security of this series to be redeemed, the remaining scheduled
payments of the principal thereof and interest thereon that would be due after
the related Redemption Date but for such redemption, except that, if such
Redemption Date is not an interest payment date with respect to such Security,
the amount of the next succeeding scheduled interest payment thereon will be
reduced by the amount of interest accrued thereon to such Redemption Date.

     "Treasury Rate" means, with respect to any
Redemption Date, the rate per annum equal to the semi-annual equivalent yield
to maturity (computed as of the second business day immediately preceding such
Redemption Date) of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such redemption date.

     On and after any Redemption Date, interest will cease to
accrue on the Securities of this series or any portion thereof called for
redemption. On or prior to any Redemption Date, the Company shall deposit with
a paying agent money sufficient to pay the Redemption Price of and accrued
interest on the Securities of this series to be redeemed on such date. If less
than all the Securities of this series are to be redeemed, the Securities of
this series to be redeemed shall be selected by the Trustee by such method as
the Trustee shall deem fair and appropriate in accordance with methods
generally used at the time of selection by fiduciaries in similar circumstances.

     If a Change of Control Triggering Event occurs, unless the
Company has exercised its right to redeem the Securities of this series, the
Holders of the Securities of this series will have the right to require the
Company to repurchase all or any part (equal to $2,000 or an integral multiple
of $1,000 in excess thereof) of their Securities of this series pursuant to the
Change of Control Offer, on the terms set forth in the Indenture.  In the
Change of Control Offer, the Company will offer payment in cash equal to 101% of the aggregate principal amount
of the Securities of this series repurchased plus accrued and unpaid interest,
if any, on the Securities of this series repurchased, to the date of purchase
in accordance with the terms of the Indenture. 

     The Indenture contains provisions for defeasance at any
time of (a) the entire indebtedness evidenced by this Security or (b) certain
restrictive covenants and Events of Default with respect to this Security, in
each case upon compliance with certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this
series shall occur and be continuing, the principal of the Securities of this
series may be declared due and payable in the manner and with the effect
provided in the Indenture.

     The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the Guarantor and the rights of the Holders of
the Securities of each series to be affected under the Indenture at any time by
the Company, the Guarantor and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time Outstanding of each
series to be affected. The Indenture also contains provisions permitting the
Holders of specified percentages in principal amount of the Securities of each
series at the time Outstanding, on behalf of the Holders of all Securities of
such series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their
consequences.  Any such consent or waiver by the Holder of this Security will
be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

     As provided in and subject to the provisions of the
Indenture, the Holder of this Security will not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver
or trustee or for any other remedy thereunder unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default
with respect to the Securities of this series, the Holders of not less than 25%
in principal amount of the Securities of this series at the time Outstanding
shall have made written request to the Trustee to institute proceedings in respect
of such Event of Default as Trustee and offered the Trustee reasonable
indemnity, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time
Outstanding a direction inconsistent with such request and shall have failed to
institute such proceeding for 60 calendar days after receipt of such notice,
request, and offer of indemnity. The foregoing shall not apply to any suit
instituted by the Holder of this Security for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective
due dates expressed herein.

     No reference herein to the Indenture and no provision of
this Security or of the Indenture will alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and
any premium and interest on this Security at the times, place, and rate, and in
the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registerable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

     The Securities of this series are issuable only in registered
form without coupons in denominations of $2,000 and integral multiples of
$1,000. As provided in the Indenture and subject to certain limitations therein
set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration
of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.

     Prior to due presentment of this Security for registration
of transfer, the Company, the Guarantor, the Trustee, and any agent of the
Company, the Guarantor or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not
this Security shall be overdue, and neither the Company, the Guarantor, the
Trustee, nor any such agent will be affected by notice to the contrary.

     Unless this Security is presented by an authorized
representative of The Depository Trust Company, a New York corporation ("DTC"),
to the Company or its agent for registration of transfer, exchange, or payment,
and any Security issued is registered in the name of Cede & Co. or such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co., or to such other entity as is requested by
an authorized representative of DTC) any
transfer, pledge, or other use hereof for value or otherwise by or to any
person is wrongful because the registered owner hereof, Cede &
Co., has an interest herein.

     All terms used in this Security that are defined in the
Indenture shall have the respective meanings assigned to them in the Indenture.

     E.             
The Trustee's certificate of authentication shall be in
substantially the following form:

Trustee's Certificate Of
Authentication

     This
is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	
  Dated:                                                        

  	

  
	

  	
  U.S. BANK NATIONAL
  ASSOCIATION, as Trustee

  
	

  	
  By:                                                                       

  
	

  	
        Authorized Officer

  

     F.             
All acts and things necessary to make the Senior Notes, when the
Senior Notes have been executed by the Company and the Guarantor and
authenticated by the Trustee and delivered as provided in the Indenture and
this Supplemental Indenture, the valid, binding, and legal obligations of the
Company and the Guarantor and to constitute these presents a valid indenture
and agreement according to its terms, have been done and performed, and the
execution and delivery by the Company and the Guarantor of the Indenture and
this Supplemental Indenture and the issue hereunder of the Senior Notes have in
all respects been duly authorized; and the Company and the Guarantor , in each
case in the exercise of legal right and power in it vested, have executed and
delivered the Indenture and are executing and delivering this Supplemental
Indenture and propose to make, execute, issue, and deliver the Senior Notes.

Now, therefore,
this Supplemental Indenture witnesseth:

     In order to declare the terms and conditions upon which
the Senior Notes are authenticated, issued, and delivered, and in consideration
of the premises and of the purchase and acceptance of the Senior Notes by the
Holders thereof, it is mutually agreed, for the equal and proportionate benefit
of the respective Holders from time to time of the Senior Notes, as follows:

ARTICLE I.  ISSUANCE OF SENIOR NOTES.

Section
1.1.  Issuance Of
Senior Notes; Principal Amount; Maturity; Additional Senior Notes.

          (a)            
On August 31, 2007 the
Company shall issue and deliver to the Trustee, and the Trustee shall
authenticate, Senior Notes substantially in the form set forth above, in each
case with such appropriate insertions, omissions, substitutions, and other
variations as are required or permitted by the Indenture and this Supplemental
Indenture, and with such letters, numbers, or other marks of identification and
such legends or endorsements placed thereon as may be required to comply with
the rules of any securities exchange or as may, consistently herewith, be
determined by the officers executing such Senior Notes, as evidenced by their
execution of such Senior Notes.

          (b)           
The Senior Notes shall be issued in the initial aggregate principal
amount of $350,000,000 and shall
mature on January 15, 2013.

          (c)            
Subject to the terms and conditions contained herein, the Company may
from time to time, without the consent of the existing Holders of Senior Notes
create and issue additional senior notes (the "Additional Senior Notes")
having the same terms and conditions as the Senior Notes in all respects,
except for issue date, issue price and the first payment of interest thereon. 
Such Additional Senior Notes, at the Company's determination and in accordance
with the provisions of the Indenture, will be consolidated with and form a
single series with the previously outstanding Senior Notes for all purposes
under the Indenture, including, without limitation, amendments, waivers and
redemptions.  The aggregate principal amount of the Additional Senior Notes, if
any, shall be unlimited.

Section
1.2.  Interest On
The Senior Notes; Payment Of Interest.

          (a)            
The Senior Notes shall bear interest at the rate of 5.875% per annum from August 31, 2007, except in the case of
Senior Notes delivered pursuant to Sections 2.05 or 2.07 of the Indenture,
which shall bear interest from the most recent Interest Payment Date to which
interest has been paid or duly provided for, until the principal thereof is
paid or made available for payment. Such interest shall be payable semiannually
on January 15 and July 15 of each year commencing January 15, 2008.

          (b)           
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date shall, as provided in the Indenture, be paid to the
Person in whose name a Senior Note (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the January 1 or
July 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for shall forthwith cease to
be payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name the Senior Note (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of the Senior Notes not less than 10 calendar
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Senior Notes may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture.

          (c)            
Subject, in the case of any Global Security, to any applicable
requirements of the Depositary, payment of the principal of (and premium, if
any) and any interest on the Senior Notes shall be made at the office or agency
of the Company maintained for the purpose in New York, New York, in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that
at the option of the Company payment of interest may be made by check mailed to
the address of the Person entitled thereto as such address appears in the
Security Register.

Section
1.3.  Execution,
Authentication And Delivery Of Securities.

     The Senior Notes will be executed (which signatures may be
via facsimile) (a) on behalf of the Company by any one of the President, the
Chief Financial Officer, or any Vice President of the Company and attested by
the Treasurer, the Secretary, any Assistant Treasurer or any Assistant
Secretary of the Company, and (b) on behalf of the Guarantor by the Chairman or
any Vice Chairman of the Board of Directors of the Guarantor, the Chief
Executive Officer, the President or any Vice President of the Guarantor and
attested by the Treasurer, the Secretary, any Assistant Treasurer or any
Assistant Secretary of the Guarantor.

ARTICLE II.  CERTAIN DEFINITIONS.

Section
2.1.  Certain
Definitions.

     The terms defined in this Section 2.1 (except as herein
otherwise expressly provided or unless the context of this Supplemental
Indenture otherwise requires) for all purposes of this Supplemental Indenture
and of any indenture supplemental hereto have the respective meanings specified
in this Section 2.1. All accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP. All other terms used in this
Supplemental Indenture that are defined in the Indenture or the Trust Indenture
Act, either directly or by reference therein (except as herein otherwise
expressly provided or unless the context of this Supplemental Indenture
otherwise requires), have the respective meanings assigned to such terms in the
Indenture or the Trust Indenture Act, as the case may be, as in force at the
date of this Supplemental Indenture as originally executed.

     "Bank Facilities" means the Amended and Restated
Credit Agreement, dated as of August 30, 2006, among the Company, the
Guarantor, the lenders from time to time party thereto, JPMorgan Chase Bank,
N.A. and Bank of America, N.A., as administrative agents, and JPMorgan Chase
Bank, N.A., as Paying Agent, as the same may be amended, supplemented or
otherwise modified from time to time.

     "Below Investment Grade Rating Event" means the
Senior Notes are rated below an Investment Grade Rating by each of the Rating
Agencies on any date from the date of the public notice of an arrangement that
could result in a Change of Control until the end of the 60-day period
following public notice of the occurrence of the Change of Control (which
60-day period shall be extended so long as the rating of the Senior Notes is
under publicly announced consideration for possible downgrade by any of the
Rating Agencies).

     "Cash Equivalent" means: (a) obligations issued or
unconditionally guaranteed as to principal and interest by the United States of
America or by any agency or authority controlled or supervised by and acting as
an instrumentality of the United States of America; (b) obligations (including,
but not limited to, demand or time deposits, bankers' acceptances and
certificates of deposit) issued by a depository institution or trust company or
a wholly owned Subsidiary or branch office of any depository institution or
trust company, provided that (i) such depository institution or trust company
has, at the time of the Company's or any Restricted Subsidiary's Investment
therein or contractual commitment providing for such Investment, capital,
surplus, or undivided profits (as of the date of such institution's most
recently published financial statements) in excess of $100.0 million and (ii)
the commercial paper of such depository institution or trust company, at the
time of the Company's or any Restricted Subsidiary's Investment therein or
contractual commitment providing for such Investment, is rated at least A1 by
S&P, P-1 by Moody's or F1 by Fitch; (c) debt obligations (including, but
not limited to, commercial paper and medium term notes) issued or
unconditionally guaranteed as to principal and interest by any corporation,
state, or municipal government or agency or instrumentality thereof, or foreign
sovereignty, if the commercial paper of such corporation, state, or municipal
government or foreign sovereignty, at the time of the Company's or any
Restricted Subsidiary's Investment therein or contractual commitment providing
for such Investment, is rated at least A1 by S&P, P-1 by Moody's or F1 by Fitch;
(d) repurchase obligations with a term of not more than seven days for
underlying securities of the type described above entered into with a
depository institution or trust company meeting the qualifications described in
clause (b) above; and (e) Investments in money market or mutual funds that
invest predominantly in Cash Equivalents of the type described in clauses (a),
(b), (c), and (d) above; provided, however, that, in the case of clauses
(a) through (c) above, each such Investment has a maturity of one year or less
from the date of acquisition thereof.

     "Change of Control" means the occurrence of any of
the following: (1) the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the properties or
assets of the Guarantor and its subsidiaries taken as a whole to any Person
other than the Guarantor or one of its subsidiaries; (2) the consummation of
any transaction (including, without limitation, any merger or consolidation)
the result of which is that any Person becomes the beneficial owner, directly
or indirectly, of more than 50% of the then outstanding number of shares of the
Guarantor's voting stock; or (3) the first day on which a majority of the
members of the Guarantor's Board of Directors are not Continuing Directors.

     "Change of Control Triggering Event" means the
occurrence of both a Change of Control and a Below Investment Grade Rating
Event.

     "Consolidated Net Tangible Assets" means total
assets (less depreciation and valuation reserves and other reserves and items
deductible from gross book value of specific asset accounts under GAAP) after
deducting therefrom (i) all current liabilities and (ii) all goodwill, trade
names, trademarks, patents, unamortized debt discount, organization expenses,
and other like intangibles, all as set forth on the most recent balance sheet
of the Company and its consolidated Subsidiaries and computed in accordance
with GAAP.

     "Continuing Directors" means, as of any date of
determination, any member of the Board of Directors of the Guarantor who (1)
was a member of such Board of Directors on the date of the Supplemental
Indenture; or (2) was nominated for election or elected to such Board of
Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination or election
(either by a specific vote or by approval of the Guarantor's proxy statement in
which such member was named as a nominee for election as a director, without
objection to such nomination).

     "Existing Indebtedness" means all Indebtedness
under or evidenced by: 

                         -  the Senior Notes;

-  the
Company's 5.350% Senior notes due 2012;

-  the
Company's 6.375% Senior notes due 2037;

-  the
Company's 5.90% Senior notes due 2016;

-  the
Company's 4.8% Senior notes due 2009;

-  the
Company's 6.625% Senior notes due 2008;

-  the
Company's 6.625% Senior notes due 2011;

-  the
Company's 5.75% Senior notes due 2014;

-  the
Company's 6.9% Senior debentures due 2029;

-  the
Company's 6.7% Senior debentures due 2034;

-  the
Company's 6.3% Senior notes due 2009;

-  the
Company's 7.45% Senior debentures due 2017;

-  the
Company's 6.65% Senior debentures due 2024;

-  the
Company's 7.0% Senior debentures due 2028;

-  the
Company's 8.75% Senior debentures due 2029;

-  the
Company's 6.9% Senior debentures due 2032;

-  the
Company's 7.9% Senior debentures due 2007;

-  the
Company's 8.0% Senior debentures due 2012;

-  the
Company's 8.5% Senior debentures due 2019;

-  the
Company's 6.7% Senior debentures due 2028;

-  the
Company's 7.875% Senior debentures due 2030;

-  the
Company's 7.875% Senior debentures due 2036;

-  the
Company's 6.79% Senior debentures due 2027;

-  the
Company's 5.95% Senior notes due 2008;

-  the
Company's 10.625% Senior debentures due 2010;

-  the
Company's 7.45% Senior debentures due 2011;

-  the
Company's 8.125% Senior debentures due 2035;

-  the
Company's 7.625% Senior debentures due 2013;

-  the
Company's 7.45% Senior debentures due 2016;

-  the
Company's 7.50% Senior debentures due 2015;

-  the
Company's 10.25% Senior debentures due 2021;

-  the
Company's 7.6% Senior debentures due 2025;

-  the
Company's 8.5% Senior notes due 2010;

-  the
Company's 9.5% amortizing debentures due 2021;

-  the
Company's 9.75% amortizing debentures due 2021;

-  Capital
Lease Obligations of the Company and its Restricted Subsidiaries existing on
the date of issuance of the Senior Notes; and

-  the
other secured Indebtedness of the Company or secured or unsecured Indebtedness
of its Restricted Subsidiaries existing on the date of issuance of the Senior
Notes.

     "Fitch" means Fitch Ratings.

     "Investment" means, with respect to any Person, any
direct or indirect loan or other extension of credit or capital contribution to
(by means of any transfer of cash or other property to others or any payment
for property or services for the account or use of others), or any purchase or
acquisition by such Person of any capital stock, bonds, notes, debentures, or
other securities or evidences of Indebtedness issued by any other Person. The
amount of any Investment shall be the original cost thereof, plus the cost of
all additions thereto, without any adjustments for increases or decreases in value,
write-ups, write-downs, or write-offs with respect to such Investment.

     "Investment Grade Rating" means a rating equal to
or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by
Moody's and BBB- (or the equivalent) by S&P.

     "Lien" means any mortgage, deed of trust, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
other), security interest, or preference, priority, or other security agreement
or preferential arrangement of any kind or nature whatsoever intended to assure
payment of any Indebtedness or other obligation, including without limitation
any conditional sale, deferred purchase price, or other title retention
agreement, the interest of a lessor under a Capital Lease Obligation, any financing
lease having substantially the same economic effect as any of the foregoing,
and the filing, under the Uniform Commercial Code or comparable law of any
jurisdiction, of any financing statement naming the owner of the asset to which
such Lien relates as debtor.

     "Moody's" means Moody's Investors Service, Inc.

     "Notice" means, with respect to an Offer to
Purchase, a written notice stating:

          (a)            
the Section of this Supplemental Indenture pursuant to which such Offer
to Purchase is being made;

          (b)           
the applicable Purchase Amount (including, if less than all the Senior
Notes, the calculation thereof pursuant to the Section hereof requiring such
Offer to Purchase);

          (c)            
the applicable Purchase Date;

          (d)           
the purchase price to be paid by the Company for each $1,000 principal
amount at maturity of Senior Notes accepted for payment (as specified in this
Supplemental Indenture);

          (e)            
that the Holder of any Senior Note may tender for purchase by the
Company all or any portion of such Senior Note equal to $2,000 principal amount
or an integral multiple of $1,000 in excess thereof;

          (f)             
the place or places where Senior Notes are to be surrendered for tender
pursuant to such Offer to Purchase;

          (g)            
any Senior Note not tendered or tendered but not purchased by the
Company pursuant to such Offer to Purchase shall continue to accrue interest as
set forth in such Senior Note and this Supplemental Indenture;

          (h)            
that on the Purchase Date the purchase price shall become due and
payable upon each Senior Note (or portion thereof) selected for purchase
pursuant to such Offer to Purchase and that interest thereon shall cease to
accrue on and after the Purchase Date;

          (i)              
that each Holder electing to tender a Senior Note pursuant to such Offer
to Purchase shall be required to surrender such Senior Note at the place or
places specified in the Notice prior to the close of business on the fifth
Business Day prior to the Purchase Date (such Senior Note being, if the Company
or the Trustee so requires, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or its attorney duly authorized in writing);

          (j)             
that (i) if Senior Notes (or portions thereof) in an aggregate principal
amount less than or equal to the Purchase Amount are duly tendered and not
withdrawn pursuant to such Offer to Purchase, the Company shall purchase all
such Senior Notes and (ii) if Senior Notes in an aggregate principal amount in
excess of the Purchase Amount are duly tendered and not withdrawn pursuant to
such Offer to Purchase, (A) the Company shall purchase Senior Notes having an
aggregate principal amount equal to the Purchase Amount and (B) the particular
Senior Notes (or portions thereof) to be purchased shall be selected by such
method as the Trustee shall deem fair and appropriate and which may provide for
the selection for purchase of portions (equal to $2,000 or an integral multiple
of $1,000 in excess thereof) of the principal amount of Senior Notes of a
denomination larger than $2,000;

          (k)           
that, in the case of any Holder whose Senior Note is purchased only in
part, the Company shall execute, and the Trustee shall authenticate and deliver
to the Holder of such Senior Note without service charge, a new Senior Note or
Senior Note of any authorized denomination as requested by such Holder in an
aggregate principal amount equal to and in exchange for the unpurchased portion
of the Senior Note so tendered; and

          (l)              
any other information required by applicable law to be included therein.

     "Offer to Purchase" means an offer to purchase
Senior Notes pursuant to and in accordance with a Notice, in the aggregate
Purchase Amount, on the Purchase Date, and at the purchase price specified in
such Notice (as determined pursuant to this Supplemental Indenture). Any Offer
to Purchase shall remain open from the time of mailing of the Notice until the
Purchase Date, and shall be governed by and effected in accordance with, and
the Company and the Trustee shall perform their respective obligations
specified in, the Notice for such Offer to Purchase.

     "Permitted Liens" means:  (a) Liens
(other than Liens on inventory) securing (A) Existing Indebtedness; (B)
Indebtedness under the Bank Facilities in an aggregate principal amount at any
one time not to exceed $2,800.0 million, less (i) principal payments actually
made by the Company on any term loan facility under such Bank Facilities (other
than principal payments made in connection with or pursuant to a refinancing of
the Bank Facilities in compliance with clause (a)(I) below) and (ii) any amounts
by which any revolving credit facility commitments under the Bank Facilities
are permanently reduced (other than permanent reductions made in connection
with or pursuant to a refinancing of the Bank Facilities in compliance with
clause (a)(I) below), except that under no circumstances shall the total
allowable indebtedness under this clause (a)(B) be less than $1,500.0 million
(subject to increase from and after the date hereof at a rate, compounded
annually, equal to 3% per annum) if incurred for the purpose of providing the
Company and its Subsidiaries with working capital, including without
limitation, bankers' acceptances, letters of credit, and similar assurances of
payment whether as part of the Bank Facilities or otherwise; (C) Indebtedness
existing as of the date hereof of any Subsidiary of the Company engaged
primarily in the business of owning or leasing real property; (D) Indebtedness
incurred for the purpose of financing store construction and remodeling or
other capital expenditures; (E) Indebtedness in respect of the deferred
purchase price of property or arising under any conditional sale or other title
retention agreement; (F) Indebtedness of a Person acquired by the Company or a
Subsidiary of the Company at the time of such acquisition; (G) to the extent
deemed to be "Indebtedness", obligations under swap agreements, cap
agreements, collar agreements, insurance arrangements, or any other agreement
or arrangement, in each case designed to provide protection against
fluctuations in interest rates, the cost of currency or the cost of goods
(other than inventory); (H) other Indebtedness in outstanding amounts not to
exceed, in the aggregate, the greater of $750.0 million and 12.5% of
Consolidated Net Tangible Assets of the Company and the Restricted Subsidiaries
at any particular time; and (I) Indebtedness incurred in connection with any
extension, renewal, refinancing, replacement, or refunding (including
successive extensions, renewals, refinancings, replacements, or refundings), in
whole or in part, of any Indebtedness of the Company or the Restricted
Subsidiaries; provided, however, that the principal amount of the
Indebtedness so incurred does not exceed the sum of the principal amount of the
Indebtedness so extended, renewed, refinanced, replaced, or refunded, plus all
interest accrued thereon and all related fees and expenses (including any
payments made in connection with procuring any required lender or similar
consents); (b) Liens incurred and pledges and deposits made in the ordinary course
of business in connection with liability insurance, workers' compensation,
unemployment insurance, old-age pensions, and other social security benefits
other than in respect of employee benefit plans subject to the Employee
Retirement Income Security Act of 1974, as amended; (c) Liens securing
performance, surety, and appeal bonds and other obligations of like nature
incurred in the ordinary course of business; (d) Liens on goods and documents
securing trade letters of credit; (e) Liens imposed by law, such as carriers',
warehousemen's, mechanics', materialmen's, and vendor's Liens, incurred in the
ordinary course of business and securing obligations which are not yet due or
which  are being contested in good faith by appropriate proceedings; (f) Liens securing
the payment of taxes, assessments, and governmental charges or levies, either
(i) not delinquent or (ii) being contested in good faith by appropriate legal
or administrative proceedings and as to which adequate reserves shall have been
established on the books of the relevant Person in conformity with GAAP; (g)
zoning restrictions, easements, rights of way, reciprocal easement agreements,
operating agreements, covenants, conditions, or restrictions on the use of any
parcel of property that are routinely granted in real estate transactions or do
not interfere in any material respect with the ordinary conduct of the business
of the Company and its Subsidiaries or the value of such property for the
purpose of such business; (h) Liens on property existing at the time such
property is acquired; (i) purchase money Liens upon or in any property acquired
or held in the ordinary course of business to secure Indebtedness incurred
solely for the purpose of financing the acquisition of such property; (j) Liens
on the assets of any Subsidiary of the Company at the time such Subsidiary is
acquired; (k) Liens with respect to obligations in outstanding amounts not to
exceed $100.0 million at any particular time and that (i) are not incurred in
connection with the borrowing of money or obtaining advances or credit (other
than trade credit in the ordinary course of business) and (ii) do not in the
aggregate interfere in any material respect with the ordinary conduct of the
business of the Company and its Subsidiaries; and (l) without limiting the
ability of the Company or any Restricted Subsidiary to create, incur, assume,
or suffer to exist any Lien otherwise permitted under any of the foregoing
clauses, any extension, renewal, or replacement, in whole or in part, of any
Lien described in the foregoing clauses; provided, however, that any
such extension, renewal, or replacement Lien is limited to the property or
assets covered by the Lien extended, renewed, or replaced or substitute
property or assets, the value of which is determined by the Board of Directors
of the Company to be not materially greater than the value of the property or
assets for which the substitute property or assets are substituted.

     "Purchase Amount" means the aggregate outstanding
principal amount of the Senior Notes required to be offered to be purchased by
the Company pursuant to an Offer to Purchase.

     "Purchase Date" means, with respect to any Offer to
Purchase, a date specified by the Company in such Offer to Purchase not less
than 30 calendar days or more than 60 calendar days after the date of the
mailing of the Notice of such Offer to Purchase (or such other time period as
is necessary for the Offer to Purchase to remain open for a sufficient period
of time to comply with applicable securities laws).

     "Rating Agencies" means (1) each of Fitch, Moody's
and S&P; and (2) if any of Fitch, Moody's or S&P ceases to rate the
Senior Notes or fails to make a rating of the Senior Notes publicly available
for reasons outside of the Company's control, a "nationally recognized
statistical rating organization" within the meaning of Rule 15c3-1(c)(2)(vi)(F)
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
selected by the Company (as certified by a resolution of its Board of
Directors) as a replacement agency for Fitch, Moody's or S&P, or all of
them, as the case may be.

     "Restricted Subsidiary" means any Subsidiary of the
Company other than an Unrestricted Subsidiary.

     "S&P" means Standard & Poor's Ratings
Services, a division of The McGraw-Hill Companies, Inc.

     "Sale and Leaseback Transaction" means, with
respect to any Person, an arrangement with any bank, insurance company, or
other lender or investor or to which such lender or investor is a party
providing for the leasing pursuant to a Capital Lease by such Person or any
Subsidiary of such Person of any property or asset of such Person or such
Subsidiary which has been or is being sold or transferred by such Person or
such Subsidiary to such lender or investor or to any Person to  whom funds have
been or are to be advanced by such lender or investor on the security of such
property or asset.

     "Senior Indebtedness" means any Indebtedness of the
Company or its Subsidiaries other than Subordinated Indebtedness.

     "Significant Subsidiary" means any Subsidiary that
accounts for (a) 10.0% or more of the total consolidated assets of any Person
and its Subsidiaries as of any date of determination or (b) 10.0% or more of
the total consolidated revenues of any Person and its Subsidiaries for the most
recently concluded fiscal quarter.

     "Subordinated Indebtedness" means any Indebtedness
of the Company which is expressly subordinated in right of payment to the
Senior Notes or any Indebtedness of the Guarantor which is expressly
subordinated in right of payment to the Guarantee.

     "Unrestricted Subsidiary" means (a) Macy's Credit
and Customer Services, Inc., (b) any Subsidiary of the Company the primary
business of which consists of, and is restricted by the charter, partnership
agreement, or similar organizational document of such Subsidiary to, financing
operations on behalf of the Company and its Subsidiaries, and/or purchasing
accounts receivable or direct or indirect interests therein, and/or making
loans secured by accounts receivable or direct or indirect interests therein
(and business related to the foregoing), or which is otherwise primarily
engaged in, and restricted by its charter, partnership agreement, or similar
organizational document to, the business of a finance company (and business
related thereto), which, in accordance with the provisions of this Supplemental
Indenture, has been designated by Board Resolution of the Company as an
Unrestricted Subsidiary, in each case unless and until any of the Subsidiaries
of the Company referred to in the foregoing clauses (a) and (b) is, in
accordance with the provisions of this Supplemental Indenture, designated by a
Board Resolution of the Company as a Restricted Subsidiary, and (c) any
Subsidiary of the Company of which, in the case of a corporation, more than 50%
of the issued and outstanding capital stock having ordinary voting power to
elect a majority of the board of directors of such corporation (irrespective of
whether at the time capital stock of any other class or classes of such
corporation has or might have voting power upon the occurrence of any
contingency), or, in the case of any partnership or other legal entity, more
than 50% of the ordinary equity capital interests, is at the time directly or
indirectly owned or controlled by one or more Unrestricted Subsidiaries and the
primary business of which consists of, and is restricted by the charter,
partnership agreement, or similar organizational document of such Subsidiary
to, financing operations on behalf of the Company and its Subsidiaries, and/or
purchasing accounts receivable or direct or indirect interests therein, and/or
making loans secured by accounts receivable or direct or indirect interests
therein (and business related to the foregoing), or which is otherwise
primarily engaged in, and restricted by its charter, partnership agreement or
similar organizational document to, the business of a finance company (and
business related thereto).

ARTICLE III.  CERTAIN COVENANTS.

     The following covenants shall be applicable to the Company
for so long as any of the Senior Notes are Outstanding. Nothing in this
paragraph will, however, affect the Company's rights or obligations under any
other provision of the Indenture or this Supplemental Indenture.

Section
3.1.  Liens.

     The Company shall not, and shall not permit any Restricted
Subsidiary to, create, incur, assume, or suffer to exist any Liens upon any of
their respective assets, other than Permitted Liens, unless the Senior Notes
are secured by an equal and ratable Lien on the same assets.

Section
3.2.  Sale And
Leaseback Transactions.

     The Company shall not, and shall not permit any Restricted
Subsidiary to, enter into any Sale and Leaseback Transaction unless the net
cash proceeds therefrom are applied as follows:  to the extent that
the aggregate amount of net cash proceeds (net of all legal, title, and
recording tax expenses, commissions, and other fees and expenses incurred, and
all federal, state, provincial, foreign, and local or other taxes and reserves
required to be accrued as a liability, as a consequence of such Sale and
Leaseback Transaction, net of all payments made on any Indebtedness that is
secured by the assets subject to such Sale and Leaseback Transaction in
accordance with the terms of any Liens upon or with respect to such assets or
which must by the terms of such Lien, or in order to obtain a necessary consent
to such Sale and Leaseback Transaction or by applicable law be repaid out of
the proceeds from such Sale and Leaseback Transaction, and net of all
distributions and other payments made to minority interest holders in Subsidiaries
or joint ventures as a result of such Sale and Leaseback Transaction) from such
Sale and Leaseback Transaction that shall not have been reinvested in the
business of the Company or its Subsidiaries or used to reduce Senior
Indebtedness of the Company or its Subsidiaries within 12 months of the receipt
of such proceeds (with Cash Equivalents being deemed to be proceeds upon
receipt of such Cash Equivalents and cash payments under promissory notes
secured by letters of credit or similar assurances of payment issued by
commercial banks of recognized standing being deemed to be proceeds upon
receipt of such payments) shall exceed $100.0 million ("Excess Sale Proceeds")
from time to time, the Company shall offer to repurchase pursuant to an Offer
to Purchase Senior Notes with such Excess Sale Proceeds (on a pro rata basis
with any other Senior Indebtedness of the Company or its Subsidiaries required
by the terms of such Indebtedness to be repurchased with such Excess Sale
Proceeds, based on the principal amount of such Senior Indebtedness required to
be repurchased) at 100% of principal amount, plus accrued and unpaid interest,
and to pay related costs and expenses. Such Offer to Purchase shall be made by
mailing of a Notice to the Trustee and to each Holder of Senior Notes at the
address appearing in the Security Register, by first class mail, postage
prepaid, by the Company or, at the Company's request, by the Trustee in the
name and at the expense of the Company, on a date selected by the Company not later
than 12 months from the date such Offer to Purchase is required to be made
pursuant to the immediately preceding sentence. To the extent that the
aggregate purchase price for Senior Notes or other Senior Indebtedness tendered
pursuant to such offer to repurchase is less than the aggregate purchase
price offered in such offer, an amount of Excess Sale Proceeds equal to such
shortfall shall cease to be Excess Sale Proceeds and may thereafter be used for
general corporate purposes. On the Purchase Date, the Company shall (i) accept
for payment Senior Notes or portions thereof tendered pursuant to the Offer to
Purchase in an aggregate principal amount equal to the Purchase Amount
(selected by such method as the Trustee shall deem fair and appropriate and which
may provide for the selection for purchase of portions (equal to $2,000 or an
integral multiple of $1,000 in excess thereof) of the principal amount of
Senior Notes of a denomination larger than $2,000), (ii) deposit with the
Paying Agent money sufficient to pay the purchase price of all Senior Notes or
portions thereof so accepted, and (iii) deliver to the Trustee Senior Notes so
accepted. The Paying Agent shall promptly mail to the Holders of Senior Notes
so accepted payment in an amount equal to the purchase price, and the Trustee
shall promptly authenticate and mail to such Holders a new Senior Note equal in
principal amount to any unpurchased portion of each Senior Note surrendered.

     Election of the Offer to Purchase by a Holder of Senior
Notes shall (unless otherwise provided by law) be irrevocable. The payment of
accrued interest as part of any repurchase price on any Purchase Date shall be
subject to the right of Holders of record of Senior Notes on the relevant
Regular Record Date to receive interest due on an Interest Payment Date that is
on or prior to such Purchase Date.

     If an Offer to Purchase Senior Notes is made, the Company
shall comply with all tender offer rules, including but not limited to Section
14(e) under the Exchange Act and Rule 14e-1 thereunder, to the extent
applicable to such Offer to Purchase. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of the Indenture
related to limitations on Sale and Leaseback Transactions, the Company shall
comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under the provisions of the Indenture
related to limitations on Sale and Leaseback Transactions by virtue of such
conflicts.

Section
3.3.  Permitting
Unrestricted Subsidiaries To Become Restricted Subsidiaries.

     The Company shall not permit any Unrestricted Subsidiary
to be designated as a Restricted Subsidiary unless such Subsidiary is otherwise
in compliance with all provisions of the Indenture and this Supplemental
Indenture that apply to Restricted Subsidiaries.

Section
3.4.  Payment
Office.

The Company shall cause a Payment Office for the Senior
Notes to be maintained at all times in New York, New York.

ARTICLE IV.  ADDITIONAL EVENTS OF DEFAULT.

Section
4.1.  Additional
Events Of Default.

     In addition to the Events of Default set forth in the
Indenture, the term "Event of Default," whenever used in the Indenture
or this Supplemental Indenture with respect to the Senior Notes, means any one
of the following events (whatever the reason for such Event of Default and
whether it may be voluntary or involuntary or be effected by operation of law
or pursuant to any  judgment, decree, or order of any court or any order, rule,
or regulation of any administrative or governmental body):

          (a)            
the failure to redeem the Senior Notes when required pursuant to the
terms and conditions thereof or to pay the repurchase price for Senior Notes to
be repurchased in accordance with Section 3.2 of this Supplemental Indenture;

          (b)           
any nonpayment at maturity or other default under any agreement or
instrument relating to any other Indebtedness of the Company or any of its
Restricted Subsidiaries (the unpaid principal amount of which is not less than
$100.0 million), and, in any such case, such default (i) continues beyond any period
of grace provided with respect thereto and (ii) results in such Indebtedness
becoming due prior to its stated maturity or occurs at the final maturity of
such Indebtedness; provided, however, that, subject to the provisions of
Section 9.01 and 8.08 of the Indenture, the Trustee shall not be deemed to have
knowledge of such nonpayment or other default unless either (1) a Responsible
Officer of the Trustee has actual knowledge of nonpayment or other default or
(2) the Trustee has received written notice thereof from the Company, from any
Holder, from the holder of any such Indebtedness or from the trustee under the
agreement or instrument, relating to such Indebtedness;

          (c)            
the entry of one or more final judgments or orders for the payment of
money against the Company, the Guarantor or any of their respective Restricted
Subsidiaries, which judgments and orders create a liability of $100.0 million
or more in excess of insured amounts and have not been stayed (by appeal or
otherwise), vacated, discharged, or otherwise satisfied within 60 calendar days
of the entry of such judgments and orders; 

          (d)           
the Guarantee ceases to be in full force and effect (except as
contemplated by the terms of the Indenture) or is declared in a judicial
proceeding to be null and void, or the Guarantor denies or disaffirms in
writing its obligation under the Guarantee; and

          (e)            
Events of Default of the type and subject to the conditions set forth in
clauses (vii) and (viii) of Section 8.01(a) of the Indenture in respect of any
Significant Subsidiary or, in related events, any group of Subsidiaries of the
Company or Guarantor which, if considered  in the aggregate, would be a
Significant Subsidiary of the Company or Guarantor.

ARTICLE V.  DEFEASANCE.

Section
5.1.  Applicability
Of Article V Of The Indenture.

          (a)            
The Senior Notes shall be subject to Defeasance and Covenant Defeasance
as provided in Article V of the Indenture; provided, however, that no
Defeasance or Covenant Defeasance shall be effective unless and until:

               (i)                 
there shall have been delivered to the Trustee the opinion of a
nationally recognized independent public accounting firm certifying the
sufficiency of the amount of the moneys, U.S. Government Obligations, or a
combination thereof, placed on deposit to pay, without regard to any
reinvestment, the principal of and any premium and interest on the Senior Notes
on the Stated Maturity thereof or on any earlier date on which the Senior Notes
shall be subject to redemption;

               (ii)               
there shall have been delivered to the Trustee the certificate of
a Responsible Officer of the Company certifying, on behalf of the Company, to
the effect that such Defeasance or Covenant Defeasance shall not result in a
breach or violation of, or constitute a default under, any agreement to which
the Company is a party or violate any law to which the Company is subject; and

               (iii)              
No Event of Default or event that (after notice or lapse of time
or both) would become an Event of Default shall have occurred and be continuing
at the time of such deposit or, with regard to any Event of Default or any such
event specified in Sections 8.01(a)(vii) and (viii), at any time on or prior to
the 124th calendar day after the date of such deposit (it being understood that
this condition shall not be deemed satisfied until after such 124th calendar
day).

          (b)           
Upon the exercise of the option provided in Section 5.01 of the
Indenture to have Section 5.03 of the Indenture applied to the Outstanding
Senior Notes, in addition to the obligations from which the Company shall be
released specified in the Indenture, the Company shall be released from its
obligations under Article III hereof.

ARTICLE VI.  REDEMPTION OF SENIOR NOTES.

Section
6.1.  Right Of
Redemption.

     The Senior Notes may be redeemed by the Company in
accordance with the provisions of the form of Senior Note set forth herein.

ARTICLE VII.  CHANGE OF CONTROL

Section
7.1.  Repurchase At The Option Of Holders.

     If a Change of Control Triggering Event occurs, unless the
Company has exercised its right to redeem the Senior Notes, Holders of Senior
Notes will have the right to require the Company to repurchase all or any part
(equal to $2,000 or an integral multiple of $1,000 in excess thereof) of their
Senior Notes pursuant to the offer described below (the "Change of Control
Offer").  In the Change of Control Offer, the Company shall offer payment
in cash equal to 101% of the
aggregate principal amount of Senior Notes repurchased plus accrued and unpaid
interest, if any, on the Senior Notes repurchased, to the date of purchase (the
"Change of Control Payment"). Within 30 days following any Change of
Control Triggering Event, the Company shall mail a notice to Holders of Senior
Notes describing the transaction or transactions that constitute the Change of
Control Triggering Event and offering to repurchase the Senior Notes on the
date specified in the notice, which date will be no earlier than 30 days and no
later than 60 days from the date such notice is mailed (the "Change of
Control Payment Date"), pursuant to the procedures required by the
Indenture and described in such notice. The Company shall comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws
and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Senior Notes as a result of
a Change of Control Triggering Event. To the extent that the provisions of any
securities laws or regulations conflict with the Change of Control provisions
of the Indenture, the Company shall be required to comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Article VII by virtue of such conflicts.

     On the Change of Control Payment Date, the Company shall
be required, to the extent lawful, to:

          (a)            
accept for payment all Senior Notes or portions of Senior Notes properly
tendered pursuant to the Change of Control Offer;

          (b)           
deposit with the paying agent an amount equal to the Change of Control
Payment in respect of all Senior Notes or portions of Senior Notes properly
tendered; and

          (c)            
deliver or cause to be delivered to the Trustee the Senior Notes
properly accepted together with an Officers' Certificate stating the aggregate
principal amount of Senior Notes or portions of Senior Notes being purchased.

ARTICLE VIII.  MISCELLANEOUS.

Section
8.1.  Reference To
And Effect On The Indenture.

     This Supplemental Indenture shall be construed as
supplemental to the Indenture and all the terms and conditions of this
Supplemental Indenture shall be deemed to be part of the terms and conditions
of the Indenture. Except as set forth herein, the Indenture heretofore executed
and delivered is hereby (i) incorporated by reference in this Supplemental
Indenture and (ii) ratified, approved and confirmed.

Section
8.2.  Waiver Of
Certain Covenants.

     The Company may omit in any particular instance to comply
with any term, provision, or condition set forth in Article III hereof if the
Holders of a majority in principal amount of the Outstanding Senior Notes
shall, by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such term, provision or condition, but no such
waiver shall extend to or affect such term, provision, or condition except to
the extent so expressly waived, and, until such waiver shall become effective,
the obligations of the Company and the duties of the Trustee in respect of any
such term, provision, or condition shall remain in full force and effect.

Section
8.3.  Supplemental
Indenture May Be Executed In Counterparts.

     This instrument may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

Section
8.4.  Effect Of
Headings.

     The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.

     In witness whereof,
the parties hereto have caused this Supplemental Indenture to be duly executed,
and their respective corporate seals to be hereunto affixed and attested, all
as of the day and year first above written.

	
  [Seal]

  	

  
	

  	
  MACY'S RETAIL HOLDINGS, INC.,

  
	

  	
  as Issuer

  
	

  	
  By: /s/ Karen M. Hoguet                                          

  
	

  	
  Name:  Karen M. Hoguet

  
	

  	
  Title:   
  Vice President and Chief Financial Officer

  
	
  Attest:

  	

  
	
  /s/ Susan P. Storer                                            

  	

  
	
  Name:  Susan P. Storer

  	

  
	
  Title:    OVP-Assistant Treasurer

  	

  
	

  	

  
	
  [Seal]

  	

  
	

  	
  MACY'S, INC.,

  
	

  	
  as Guarantor

  
	

  	
  By: /s/ Karen M. Hoguet                                          

  
	

  	
  Name:   Karen M. Hoguet

  
	

  	
  Title:    
  Executive Vice President and Chief    Financial Officer

  
	
  Attest:

  	

  
	
  /s/ Susan P. Storer                                            

  	

  
	
  Name:  Susan P. Storer

  	

  
	
  Title:    OVP-Assistant Treasurer

  	

  

	

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	

  	
  as Trustee

  
	

  	
  By:  /s/ Earl W. Dennison Jr.                                    

  
	

  	
  Name:   Earl W. Dennison Jr.

  
	

  	
  Title:     Vice President

  
	
  Attest:

  	

  
	
  /s/ Andrew M. Sinasky                                     

  	

  
	
  Name:   Andrew M. Sinasky

  	

  
	
  Title:     Vice President

  	

  

	
  STATE OF OHIO

  	
  )

  	

  
	

  	
  )

  	
  ss.:

  
	
  COUNTY OF HAMILTON

  	
  )

  	

  

On this 31st day of August, 2007, before me
personally came Karen M. Hoguet, to me known, who, being by me duly sworn, did
depose and say that she is a Vice President and Chief Financial Officer of
MACY'S RETAIL HOLDINGS, INC., one of the entities described in and which
executed the above instrument; that she knows the seal of said entity; that the
seal or a facsimile thereof affixed to said instrument is such seal; that it
was so affixed by authority of the Board of Directors of said entity, and that
she signed his/her name thereto by like authority.

IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my official seal the day and year in this certificate first above
written.

	

  	
  /s/ Dianne M. Webber                                          

  
	

  	
  Notary Public

  

	
  STATE OF OHIO

  	
  )

  	

  
	

  	
  )

  	
  ss.:

  
	
  COUNTY OF HAMILTON

  	
  )

  	

  

On this 31st day of August, 2007, before me
personally came Karen M. Hoguet, to me known, who, being by me duly sworn, did
depose and say that she is a Executive Vice President and Chief Financial
Officer of MACY'S, INC., one of the entities described in and which executed
the above instrument; that she knows the seal of said entity; that the seal or
a facsimile thereof affixed to said instrument is such seal; that it was so
affixed by authority of the Board of Directors of said entity, and that she
signed his/her name thereto by like authority.

IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my official seal the day and year in this certificate first above
written.

	

  	
  /s/ Dianne M. Webber                                          

  
	

  	
  Notary Public

  

	
  COMMONWEALTH OF MASSACHUSETTS

  	
  )

  	

  
	

  	
  )

  	
  ss.: BOSTON

  
	
  COUNTY OF SUFFOLK

  	
  )

  	

  

On this 31st day of August, 2007, before me
personally came Earl W. Dennison Jr., to me known, who, being by me duly sworn,
did depose and say that he is a Vice President of U.S. BANK NATIONAL
ASSOCIATION one of the entities described in and which executed the above
instrument; that he knows the seal of said entity; that the seal or a facsimile
thereof affixed to said instrument is such seal; that it was so affixed by
authority of the Board of Directors of said entity, and that he signed his name
thereto by like authority.

IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my official seal the day and year in this certificate first above
written.

	

  	
  /s/ Jordan D. Musser                                            

  
	

  	
  Notary Publicexhibit.htm

    
       Exhibit
        10.1

       

      FIRST
        AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

       

      This
        FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (“Amendment”),
        dated as of August ___, 2007, among M/I HOMES, INC., an Ohio corporation
        (the
“Borrower”), the Lenders that are identified on the signature pages hereto and
        JPMORGAN CHASE BANK, N.A., as Agent (the “Agent”).

       

      RECITALS

       

      WHEREAS,
        the Borrower, the Lenders identified on the signature pages hereto, certain
        other Lenders and Administrative Agent are parties to that certain Second
        Amended and Restated Credit Agreement dated as of October 6, 2006 (as it
        may be
        amended, renewed and restated from time to time, the “Credit Agreement”) (all
        capitalized terms not defined herein shall have the meanings given such terms
        in
        the Credit Agreement);

       

      WHEREAS,
        the Borrower and the Required Lenders have heretofore executed and delivered
        a
        letter agreement dated December 11, 2006 amending the Credit Agreement (the
        “Letter Amendment”);

       

      WHEREAS,
        the Borrower and the Lenders desire to amend the Credit Agreement to incorporate
        in a comprehensive amendment the Letter Amendment, to modify certain provisions
        of the Credit Agreement and for other purposes hereinafter set
        forth;

       

      NOW,
        THEREFORE, for good and valuable consideration, the parties hereto hereby
        agree
        as follows:

       

      1.  Amendment
        of Section 1.

       

      (a)  The
        following defined terms in Section 1 of the Credit Agreement are hereby amended
        and restated as follows:

       

      “Borrowing
        Base” shall mean, at
        any date of determination, an amount equal to the sum of the following
        unencumbered assets of the Borrower and the Guarantors;

       

      
        	
                 

              	
                (i)

              	
                one
                  hundred percent (100%) of the Receivables,
                  plus

              

      

       

      
        	
                 

              	
                (ii)

              	
                ninety
                  percent (90%) of the book value of Housing Units under Contract
                  and Lots
                  under Contract, plus

              

      

       

      
        	
                 

              	
                (iii)

              	
                the
                  lesser of (A) seventy-five percent (75%) of the book value of Speculative
                  Housing Units or (B) $125,000,000,
                  plus

              

      

       

      
        	
                 

              	
                (iv)

              	
                seventy
                  percent (70%) of the book value of Finished Lots (subject to the
                  limitation set forth below), plus

              

      

       

      
        	
                 

              

      

      
        	
                 

              	
                (v)

              	
                fifty
                  percent (50%) of the book value of Lots under Development (subject
                  to the
                  limitation set forth below), plus

              

      

       

      
        	
                 

              	
                (vi)

              	
                twenty-five
                  percent (25%) of the book value of Unimproved Entitled Land (subject
                  to
                  the limitation set forth below).

              

      

       

      Notwithstanding
        the foregoing, the Borrowing Base shall not include any amounts under clauses
        (iv), (v) and (vi) above to the extent that the sum of such amounts exceeds
        forty-five percent (45%) of the total Borrowing Base.  The term
“unencumbered” means that such asset is not subject to any Lien (except for
        Liens permitted under subsections 7.2(c) and (d) hereof).

       

      “Borrowing
        Base Indebtedness”
shall mean at any date (i) the sum of (a) Consolidated Indebtedness and
        (b) an
        amount equal to ten percent (10%) of the aggregate commitment under the M/I
        Financial Corp. Loan Agreement, less (ii) the sum of (a) Secured
        Indebtedness, (b) Subordinated Indebtedness, (c) Indebtedness under the M/I
        Financial Corp. Loan Agreement, and (d) to the extent included in Consolidated
        Indebtedness, the Borrower’s and its Subsidiaries’ pro rata share of
        Indebtedness of any Joint Venture in respect of which Borrower or any of
        its
        Subsidiaries has made an Investment in Joint Venture,  all as of such
        date.

       

      “Consolidated
        Earnings” shall
        mean, for any period, the amount which would be set forth opposite the caption
        “net income” (or any like caption) in a consolidated statement of income or
        operations of Borrower and Borrower’s Subsidiaries for such period prepared in
        accordance with GAAP.

       

      “Consolidated
        Interest Incurred”
shall mean, for any period, all interest incurred during such period
        on
        outstanding Indebtedness of Borrower and Borrower’s Subsidiaries irrespective of
        whether such interest is expensed or capitalized by Borrower or Borrower’s
        Subsidiaries, in each case determined on a consolidated basis.

       

      “EBITDA” shall
        mean, for any period, on a consolidated basis for Borrower and its Subsidiaries,
        the sum of the amounts for such period of (a) Consolidated Earnings, plus
        (b)
        charges against income for federal, state and local income taxes, plus
        (c) Consolidated Interest Expense, plus (d) depreciation and amortization
        expense, plus (e) extraordinary losses (and all other non-cash items
        reducing Consolidated Earnings, including but not limited to impairment charges
        for land and other long-lived assets and option deposit forfeitures) for
        such
        period, all determined in accordance with GAAP, minus (x) interest income,
        minus
        (y) all extraordinary gains (and all other non-cash gains that have been
        included in the determination of Consolidated Earnings) for such period,
        all
        determined in accordance with GAAP.  EBITDA shall include net income
        from Joint Ventures only to the extent distributed to Borrower or a
        Subsidiary.

       

      “Interest
        Coverage Ratio” shall mean, for any rolling period of four fiscal quarters,
        the ratio of (a) EBITDA to (b) Consolidated Interest Incurred for such
        period.

       

      (b)  The
        following defined terms are hereby added to Section 1 of the Credit
        Agreement:

       

      “Leverage
        Ratio” shall mean the ratio of Consolidated Indebtedness to Consolidated
        Tangible Net Worth.

      

      “Quarterly
        ICR” shall mean, for any fiscal quarter, the ratio of (a) EBITDA for such
        fiscal quarter to (b) Consolidated Interest Incurred for such fiscal
        quarter.

      

      2.  Reduction
        of Aggregate Commitment.  Pursuant to subsection 2.6(a) of the
        Credit Agreement, the Aggregate Commitment is hereby reduced from $650,000,000
        to $500,000,000, allocated to each Lender’s Commitment ratably in proportion to
        its Ratable Share.  The amounts of the reduced Commitments of the
        Lenders are set forth in Schedule I hereto.

       

      3.  Pricing.  Subsection
        2.5(d) is hereby deleted and replaced by the following:

       

      (d)           Notwithstanding
        the foregoing, at any time at which the Interest Coverage Ratio is less than
        2.00 to 1.00, the Applicable Eurodollar Margin and Applicable Facility L/C
        Rate
        determined as provided above shall be increased based upon the Interest Coverage
        Ratio as follows:

      

      
        	
                Interest
                  Coverage Ratio

              	
                Less
                  than 2.0 to 1.0 but greater than or equal to 1.5 to
                  1.0

              	
                Less
                  than 1.5 to 1.0 but greater than or equal to 1.0 to
                  1.0

              	
                Less
                  than 1.0 to 1.0

              
	
                Increase
                  in Applicable Eurodollar Margin and Applicable Facility L/C
                  Rate

              	
                0.125%

              	
                0.25%

              	
                0.375%

              

      

      

      The
        determination of the Interest Coverage Ratio shall be made from the then
        most
        recent annual or quarterly financial statements of the Borrower delivered
        by the
        Borrower to the Agent pursuant to subsection 6.1(a) or (b), and the adjustment,
        if any, to the Applicable Eurodollar Margin and the Applicable Facility L/C
        Rate
        shall take place on, and be effective from and after, the first business
        day
        after the date on which the Agent has received such financial
        statements.

      

      In
        the
        event that any such financial statement or any certificate delivered by Borrower
        under subsection 6.2(a) is shown to be inaccurate (regardless of whether
        this
        Agreement is in effect or any Loans or Commitments are outstanding when such
        inaccuracy is discovered), and such inaccuracy, if corrected, would have
        led to
        the application of a higher Applicable Eurodollar Margin and Applicable Facility
        L/C Rate for any period (an “Applicable Period”) than the Applicable Eurodollar
        Margin and Applicable Facility L/C Rate actually applied for such Applicable
        Period, then (i) the Borrower shall immediately deliver to the Agent a correct
        certificate under subsection 6.2(a) for such Applicable Period, (ii) the
        Applicable Eurodollar Margin and Applicable Facility L/C Rate shall be
        determined at such higher Applicable Eurodollar Margin and Applicable Facility
        L/C Rate for such Applicable Period, and (iii) the Borrower shall immediately
        pay to the Agent (for the benefit of the Lenders) the accrued additional
        interest and additional fees owing as a result of such higher Applicable
        Eurodollar Margin and Applicable Facility L/C Rate for such Applicable
        Period.

      

      4.  Leverage
        Ratio.  Subsection 6.12 is hereby amended and restated in its
        entirety as follows:

       

      6.12           Maintenance
        of Leverage Ratio.  Maintain during the Commitment Period a
        Leverage Ratio not in excess of (a) 2.00 to 1.00 at any time at which the
        Interest Coverage Ratio is greater than or equal to 2.00 to 1.00; (b) 1.40
        to
        1.00 at any time at which the Interest Coverage Ratio is greater than or
        equal
        to 1.25 to 1.00 and less than 2.00 to 1.00; and (c) 1.20 to 1.00 at any time
        at
        which the Interest Coverage Ratio is less than 1.25 to
        1.00.  Notwithstanding the foregoing, Borrower shall maintain a
        Leverage Ratio of less than 1.00 to 1.00 when required for Borrower to comply
        with the provisions of the last sentence of subsection 6.13(a).

       

      5.  Interest
        Coverage Ratio.  Subsection 6.13 of the Credit Agreement is hereby
        amended and restated in its entirety as follows:

       

      6.13           Maintenance
        of Interest Coverage Ratio.

       

      (a)  Maintain
        during the Commitment Period an Interest Coverage Ratio of not less than
        (i)
        2.00 to 1.00 determined as of the end of each fiscal quarter through and
        including the fiscal quarter ending September 30, 2007; (ii) 1.25 to 1.00
        determined as of the end of the fiscal quarters ending December 31, 2007
        and
        March 31, 2008; (iii) 1.00 to 1.00 determined as of the end of the fiscal
        quarters ending June 30, 2008 through March 31, 2009; (iv) 1.25 to 1.00
        determined as of the end of the fiscal quarters ending June 30, 2009 and
        September 30, 2009; and (v) 1.50 to 1.00 determined as of the end of each
        fiscal
        quarter thereafter.  Notwithstanding the foregoing, the maintenance of
        an Interest Coverage Ratio of less than 1.00 to 1.00 determined as of the
        end of
        not more than three (3) fiscal quarters at any time during the Commitment
        Period
        shall not constitute a violation of this subsection 6.13(a) as long as Borrower
        maintains a Leverage Ratio of  less than 1.00 to 1.00 as of the last
        day of each such fiscal quarter.

       

      (b)  Not
        permit the Quarterly ICR to be less than 1.00 to 1.00 for more than four
        (4)
        consecutive fiscal quarters at any time during the Commitment
        Period.

       

      6.  Housing
        Inventory.  Subsection 7.13 is hereby amended and restated in its
        entirety as follows:

       

      7.13           Housing
        Inventory.  Permit the number of Speculative Housing Units, as at
        the end of any fiscal quarter, to exceed the greater of (a) the number of
        Housing Unit Closings occurring during the period of twelve (12) months ending
        on the last day of such fiscal quarter, multiplied by thirty percent (30%)
        or
        (b) the number of Housing Unit Closings occurring during the period of six
        (6)
        months ending on the last day of such fiscal quarter, multiplied by sixty
        percent (60%).

       

      7.  Form
        of Borrowing Base Certificate.  Exhibit A to the Credit
        Agreement is hereby replaced by Exhibit A hereto.

       

      8.  Form
        of Certificate.  Exhibit F to the Credit Agreement is
        hereby replaced by Exhibit F hereto.

       

      9.  Conditions
        Precedent.  This Amendment shall be effective as of the date
        (“Amendment Effective Date”) upon which the following conditions are
        satisfied:

       

      (a)  The
        Agent
        shall have received from the Borrower and the Required Lenders a counterpart
        of
        this Amendment signed on behalf of each such party.

       

      (b)  The
        Agent
        shall have received from the Guarantors the Consent and Agreement substantially
        in the form attached hereto as Appendix A.

       

      (c)  The
        Agent
        shall have received such documents and certificates as the Agent or its counsel
        may reasonably request relating to the organization or formation, existence
        and
        good standing of the Borrower, the authorization of this Amendment and any
        other
        legal matters relating to the Borrower, the Agreement or this Amendment,
        all in
        form and substance satisfactory to the Agent and its counsel.

       

      (d)  The
        Agent
        shall have received all fees and other amounts due and payable on or prior
        to
        the Amendment Effective Date, including reimbursement or payment of all
        out-of-pocket expenses required to be reimbursed or paid by the Borrower
        hereunder.

       

      The
        Agent
        shall notify the Borrower and the Lenders of the Amendment Effective Date,
        and
        such notice shall be conclusive and binding.

       

      10.  Representations
        and Warranties.  The Borrower hereby represents and warrants that
        as of the date hereof:

       

      (a)           The
        representations and warranties of the Borrower in the Credit Agreement are
        true
        and correct in all material respects.

      

      (b)           There
        exists no Default or Event of Default.

      

      11.  Ratification.  This
        Amendment supersedes the Letter Amendment.  The Credit Agreement, as
        amended hereby, is hereby ratified and remains in full force and
        effect.

       

      12.  Counterparts.  This
        Amendment may be executed in any number of counterparts, all of which taken
        together shall constitute one agreement and any of the parties hereto may
        execute this Amendment by signing any such counterpart.

       

      
        
          
          

        

        
          
            

          

        

         

      

      IN
        WITNESS WHEREOF, the Borrower and the Lenders have caused this Amendment
        to be
        duly executed as of the date first above written.

       

      Borrower:

       

      M/I
        HOMES, INC.

       

      By:                                                           

       

      Name:                                                           

       

      Title:                                                           

       

      
         

        
          
            

          

        

         

      

      Lenders:

       

      JPMORGAN
        CHASE BANK,
        N.A.,

      As
        Lender and Agent

       

      By:_________________________________

      Name:_______________________________

      Its:_________________________________

       

      

       

      

       

      
         

        
          
            

          

        

         

      

      SCHEDULE
        I

       

      COMMITMENTS

       

      
        	
                Lender

              	
                Commitment

              	
                Ratable
                  Share

              
	
                JPMorgan
                  Chase Bank, N.A.

              	
                $

              	
                44,230,769.24

              	
                8.846153846

              	
                %

              
	
                Wachovia
                  Bank, National Association

              	 	
                44,230,769.23

              	
                8.846153846

              	 
	
                The
                  Huntington National Bank

              	 	
                42,307,692.31

              	
                8.461538461

              	 
	
                KeyBank
                  National Association

              	 	
                34,615,384.62

              	
                6.923076923

              	 
	
                Charter
                  One Bank, N.A.

              	 	
                30,769,230.77

              	
                6.153846153

              	 
	
                SunTrust
                  Bank

              	 	
                30,769,230.77

              	
                6.153846153

              	 
	
                Regions
                  Bank

              	 	
                26,923,076.92

              	
                5.384615384

              	 
	
                Bank
                  of Montreal

              	 	
                26,923,076.92

              	
                5.384615384

              	 
	
                Guaranty
                  Bank

              	 	
                26,923,076.92

              	
                5.384615384

              	 
	
                National
                  City Bank

              	 	
                26,923,076.92

              	
                5.384615384

              	 
	
                US
                  Bank National Association

              	 	
                26,923,076.92

              	
                5.384615384

              	 
	
                LaSalle
                  Bank National Association

              	 	
                23,076,923.08

              	
                4.615384615

              	 
	
                PNC
                  Bank, N.A.

              	 	
                23,076,923.08

              	
                4.615384615

              	 
	
                City
                  National Bank

              	 	
                19,230,769.23

              	
                3.846153846

              	 
	
                Fifth
                  Third Bank

              	 	
                19,230,769.23

              	
                3.846153846

              	 
	
                Franklin
                  Bank, S.S.B.

              	 	
                19,230,769.23

              	
                3.846153846

              	 
	
                Comerica
                  Bank

              	 	
                15,384,615.38

              	
                3.076923076

              	 
	
                Compass
                  Bank

              	 	
                11,538,461.54

              	
                2.307692307

              	 
	
                Bank
                  United, F.S.B.

              	 	
                        
                  7,692,307.69

              	
                1.538461538

              	 
	
                Total

              	
                $

              	
                500,000,000.00

              	
                                           
                    100%

              	 

      

      

      

      

       

      
        
                

                    Sch.-
              1    
   

                 
      
    

        

        
          
          

          
            

          

        

         

      

      EXHIBIT
        A

       

      

       

      FORM
        OF BORROWING BASE CERTIFICATE

       

      __________
        __, ____

       

      

       

      To:  Agent
        and each Lender

       

      Ladies
        and Gentlemen:

       

      This
        letter is to comply with subsection 6.3 of the Second Amended and Restated
        Credit Agreement dated October 6, 2006 (as amended, the “Credit Agreement”),
        among M/I Homes, Inc., as Borrower, the Lenders party thereto and JPMorgan
        Chase
        Bank, N.A. as Agent and is for the monthly accounting period ended _______
        __,
        ____.  Capitalized terms used but not defined herein have the meanings
        given to such terms in the Credit Agreement.

       

      Attached
        hereto is the calculation of the Borrowing Base.  All figures in this
        calculation are as at the end of the monthly accounting period set forth
        in the
        first paragraph of this letter.  The undersigned certifies that the
        calculation set forth herein is true and accurate in all material
        respects.

       

      

       

      Certified
        by:

       

      __________________________________

      [Chief
        Financial Officer or Controller] of

      M/I
        Homes, Inc.

      

      Attachment

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Attachment
        to

       

      M/I
        Homes, Inc.

       

      Borrowing
        Base Certificate

       

      ____________,
        200_

       

      
        	
                Book
                  Value:

              	 	
                $
                  000’s         
                  

              
	 	
                Receivables

              	
                $

              
	 	
                Housing
                  Units under Contract and Lots under Contract

              	
                $

              
	 	
                Speculative
                  Housing Units

              	
                $

              
	 	
                Finished
                  Lots

              	
                $

              
	 	
                Lots
                  under Development

              	
                $

              
	 	
                Unimproved
                  Entitled Land

              	
                $

              
	 	 	 
	
                Total:

              	 	
                $_________

              
	 	 	 
	
                Borrowing
                  Base Percentages:

              	 	 
	 	
                Receivables

              	
                100%

              
	 	
                Housing
                  Units under Contract and Lots under Contract

              	
                 90%

              
	 	
                Speculative
                  Housing Units (not to exceed $125,000,000)

              	
                 75%

              
	 	
                Finished
                  Lots

              	
                 70%

              
	 	
                Lots
                  under Development

              	
                 50%

              
	 	
                Unimproved
                  Entitled Land

              	
                 25%

              
	 	 
	
                Borrowing
                  Base:

              	 
	 	
                Receivables

              	
                $

              
	 	
                Housing
                  Units under Contract and Lots under Contract

              	
                $

              
	 	
                Speculative
                  Housing Units

              	
                $

              
	 	
                Finished
                  Lots

              	
                $

              
	 	
                Lots
                  under Development

              	
                $

              
	 	
                Unimproved
                  Entitled Land

              	
                $___________

              
	 	 	 
	
                Less

              	 
	 	
                The
                  amount (if any) by which Finished Lots, Lots under Development
                  and
                  Unimproved Entitled Land exceed 45% of Borrowing Base

              	
                $__________

              
	
                Maximum
                  Borrowing Base Indebtedness:

              	
                $__________

              
	 	 
	
                Total
                  Borrowing Base Indebtedness (see (i) below)

              	
                $__________

              
	 	 
	
                Additional
                  amount that could be borrowed

              	
                $__________

              
	
                Amount
                  borrowed on revolver *

              	
                $__________

              
	
                Maximum
                  revolver borrowings allowed*

              	
                $__________

              

      

      ______________________________________________________________________________

       

      *Includes
        Revolving Credit Loans, Swingline Loans, Facility L/Cs (excluding Performance
        Letters of Credit) and all Reimbursement Obligations.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                (i)

              	
                Total
                  Borrowing Base Indebtedness

              	 
	 	
                Amount
                  borrowed on revolver*

              	
                $

              
	 	
                Other
                  Consolidated Indebtedness

              	
                $__________

                $

              
	 	 	 
	 	
                Plus

              	 
	 	
                10%
                  of commitment under M/I Financial Corp. Loan Agreement

                 

                Less

                Secured
                  Indebtedness

                Subordinated
                  Indebtedness

                M/I
                  Financial Corp. Agreement Indebtedness

                 

              	
                $__________

                $

                 

                $__________

                $__________

                $__________

              
	 	 	 
	 	
                Total

              	
                $__________

              

      

      ______________________________________________________________________________

      *Includes
        Revolving Credit Loans, Swingline Loans, Facility L/Cs (excluding Performance
        Letters of Credit) and all Reimbursement Obligations.

      

      
        
          
          

        

        
          
            

          

        

         

      

      EXHIBIT
        F

       

      

       

      [LETTERHEAD
        OF M/I HOMES, INC.]

       

      

       

      [DATE]

       

      To:           Agent
        and each Lender

       

      Ladies
        and Gentlemen:

       

      This
        letter is being sent to you to comply with subsection 6.2 of the Second Amended
        and Restated Credit Agreement effective as of October 6, 2006 (as amended,
        the
“Credit Agreement”) and is being delivered to you for the period of [insert
        yearly or quarterly period as appropriate] for which period the undersigned
        has
        heretofore delivered, or is herewith delivering, the financial statements
        provided for in subsection 6.1 of the Credit Agreement (the “Financial
        Statements”).  [The undersigned hereby certifies that such Financial
        Statements are true and accurate in all material respects, subject to normal
        year-end audit adjustments (Note: only required with delivery of unaudited
        Financial Statements)].  Capitalized terms used but not defined herein
        have the meanings given to such terms in the Credit Agreement.

       

      The
        undersigned certifies that, after due examination by the undersigned and
        to the
        best of the knowledge of the undersigned, M/I Homes, Inc. and each of its
        Subsidiaries during the period stated above has observed or performed in
        all
        material respects all of its covenants and other agreements, and satisfied
        every
        condition, contained in the Credit Agreement, the Notes and the Guaranty
        Agreement to be observed, performed or satisfied by it, and that the undersigned
        has no knowledge of any Default or Event of Default except [list any Defaults
        or
        Events of Default; if none, end sentence before “except”].

       

      Additionally,
        I have enclosed a statement showing in detail the calculation of ratios and
        other covenants, in accordance with corresponding subsections of the Credit
        Agreement, as required by the Credit Agreement.

       

       

      Yours
        very truly,

       

       

      By:                 ____________________________________

       

       

      Printed
        Name:  _____________________________        
_  

       

      Title:                 ____________________________________

       

      Enclosure

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      CONFIDENTIAL

       

      

       

      STATEMENT
        OF CALCULATION OF CERTAIN COVENANTS

       

      [Date]

       

      
        	
                             
                  Subsection No.

              	
                Covenant

              
	
                1.          6.11

              	
                Maintain
                  Consolidated Tangible Net Worth of: (i) $480,000,000 plus (ii)
                  fifty
                  percent (50%) of the Consolidated Earnings for each quarter after
                  June 30,
                  2006 (excluding any quarter in which Consolidated Earnings are
                  less than
                  zero (0)) plus (iii) fifty percent (50%) of the net proceeds or
                  other
                  consideration received by Borrower for any capital stock issued
                  or sold
                  after June 30, 2006

                 

              
	 	
                (i)
                  above:

                 

              	
                $480,000,000

              
	 	
                Plus
                  (ii) above:

                 

              	
                $__________

              
	 	
                Plus
                  (iii) above:

                 

              	
                $__________

              
	 	
                Minimum
                  Required

                 

              	 
	 	
                Consolidated
                  Tangible

                  Net
                  Worth:

                 

              	
                $__________

                 

              
	 	
                Consolidated
                  Tangible Net Worth =

              	
                $__________

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                2.           6.12

              	
                Maintain
                  a Leverage Ratio not in excess of ____1 to 1.00.

                 

              
	 	
                Consolidated
                  Indebtedness:

                 

              	
                $__________

              
	 	
                Consolidated
                  Tangible Net Worth:

                 

              	
                $__________

              
	 	
                Leverage
                  Ratio = ________ to 1.00

              	 

      

      

        

      

        
        1   
          Insert applicable requirement per subsection 6.12.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                3.           6.13(a)

              	
                Maintain
                  an Interest Coverage Ratio of not less than ____**
                  to
                  1.00

                 

              
	 	
                EBITDA
                  (for four quarters):

                 

              	
                $__________

              
	 	
                Consolidated
                  Interest Incurred (for four quarters):

                 

              	
                $__________

              
	 	
                Interest
                  Coverage Ratio = _______ to 1.00

                 

              
	 	
                If
                  Interest Coverage Ratio is less than 1.00 to 1.00, indicate the
                  number of
                  times during the Commitment Period (including this quarter) that
                  the
                  Interest Coverage Ratio has been less than 1.00 to
                  1.00    _______

                 

              
	
                4.           6.13(b)

              	
                Not
                  permit the Quarterly ICR to be less than 1.00 to 1.00 for more
                  than four
                  consecutive fiscal quarters

              
	 	
                EBIDTA
                  (for quarter):

                 

              
	 	
                Consolidated
                  Interest Incurred (for quarter):

                 

              
	 	
                Quarterly
                  ICR = _______ to 1.00

                 

              
	 	
                Quarterly
                  ICR for the four (4) prior quarters

                 

              
	 	
                Quarter
                  ending ___________    ____________ to
                  1.00

                Quarter
                  ending ___________    ____________ to
                  1.00

                Quarter
                  ending ___________    ____________ to
                  1.00

                Quarter
                  ending ___________    ____________ to
                  1.00

              
	
                5.           7.1

              	
                Secured
                  Indebtedness not to exceed $50,000,000

                 

              
	 	 
	 	
                Secured
                  Indebtedness =

              	
                $_________

              

      

      

        

      

        
        **   Insert
          applicable requirement per subsection 6.13(a).

      

      
         

        
          
            

          

        

         

      

      

      
        	
                6.           7.5

              	
                Adjusted
                  Land Value not to exceed 125%  of the sum of (a) Consolidated
                  Tangible Net Worth plus (b) 50% of Subordinated Indebtedness

                 

              
	 	
                Adjusted
                  Land Value

                 

              	 
	 	
                (i)
                  book value of all Land:

                less
                  (ii) the sum of

              	
                $_________

              
	 	 	 
	 	
                (a)
                  book value of Lots under Contract:

                and
                  (b) lesser of (i) the product of (x) number

                of
                  Housing Units contracted for during the last

                six
                  months:

                 

              	
                $_________

                 

                 

                $_________

              
	 	
                and
                  (y) average book value of all Finished Lots and Lots under
                  Contract:

                 

              	
                $_________

              
	 	
                (ii)
                  25% of Consolidated Tangible Net Worth:

                 

              	
                $_________

              
	 	
                Adjusted
                  Land Value =

                 

              	
                $_________

              
	 	
                (a)
                  Consolidated Tangible Net Worth:

                 

              	
                $_________

              
	 	
                Plus
                  (b) 50% of Subordinated Indebtedness:

                 

              	
                $_________

              
	 	
                Total
                  [(a) + (b)] =

                 

              	
                $_________

              
	 	
                X
                  1.25 =

                 

              	
                $_________

              
	
                7.           7.6(b)

              	
                Limit
                  on extension of credit in connection with the sale of land of 2.5%
                  of
                  Consolidated Tangible Net Worth

                 

              	
                $_________

              
	 	
                2.5%
                  of Consolidated Tangible Net Worth:

                 

              	
                $_________

              
	 	
                Aggregate
                  amount of extensions of credit in connection with the sale of
                  land:

                 

              	
                $_________

              
	 	
                Maximum
                  maturity of any such extensions of credit not to exceed five
                  years:

                ___________________

              	 

      

      
        
          
          

        

        
          
            

          

        

         

      

      

      
        	
                8.           7.6(e)

              	
                Limit
                  on Investments in Joint Ventures of fifteen percent (15%) of Consolidated
                  Tangible Net Worth, provided that Borrower has no less than a 20%
                  interest
                  in each such joint venture and that management and control decisions
                  for
                  each such joint venture require Borrower’s consent and
                  approval.

                 

              
	 	
                15%
                  of Consolidated Tangible Net Worth:

                 

              	
                $_________

              
	 	
                Investments
                  in Joint Ventures:

                 

              	
                $_________

              
	 	
                Lowest
                  percentage interest of Borrower in a joint venture:

                ________________________%

                 

              
	
                9.           7.13

              	
                The
                  number of Speculative Housing Units, as at the end of any fiscal
                  quarter,
                  not to exceed the greater of (a) the number of Housing Unit Closings
                  occurring during the period of twelve (12) months ending on the
                  last day
                  of such fiscal quarter, multiplied by thirty percent (30%) or (b)
                  the
                  number of Housing Unit closings occurring during the period of
                  six (6)
                  months ending on the last day of such fiscal quarter, multiplied
                  by sixty
                  percent (60%).

                 

              	 
	 	
                Speculative
                  Housing Units:

                 

              	 
	 	
                (a)  Housing
                  Unit Closings in last 12

                 months:
                  _________ x 30% =

                 

              	 
	 	
                (b)  Housing
                  Unit Closings in last 6 months: _________ x 60% =

              	 

      

      

       

      

       

      
        
          
          

        

        
          
            

          

        

         

      

       

      Appendix
        A

       

      CONSENT
        AND AGREEMENT OF GUARANTORS

       

      

      THIS
        CONSENT AND AGREEMENT OF GUARANTORS (“Consent”) is executed and delivered as of
        August __, 2007, by the undersigned (the “Guarantors”), in favor of the
“Lenders” under that certain Second Amended and Restated Credit Agreement dated
        October 6, 2006, among Lennar Corporation, the Lenders from time to time
        parties
        thereto and JPMorgan Chase Bank, N.A., in its capacity as Agent.  Such
        Credit Agreement, as it has been and may be amended, modified or supplemented
        from time to time, is hereinafter referred to as the “Credit
        Agreement.”  Unless otherwise defined herein, capitalized terms used
        herein shall have the meanings ascribed to them in the Credit
        Agreement.

       

      W
        I T N E
        S S E T H:

       

      WHEREAS,
        the Guarantors have executed and delivered a Guaranty dated October 6, 2006
        in
        favor of the Lenders under the Credit Agreement or a Supplemental Guaranty
        thereto (collectively, the “Guaranty”); and

       

      WHEREAS,
        the Borrower, the Agent and certain Lenders have entered into that certain
        First
        Amendment to Second Amended and Restated Credit Agreement of even date herewith
        amending the Credit Agreement (the “Amendment”); and

       

      WHEREAS,
        it is a condition to the Amendment that the Guarantors shall have executed
        this
        Consent;

       

      NOW
        THEREFORE, for good and valuable consideration, the receipt and sufficiency
        of
        which are hereby acknowledged, the Guarantors hereby consent to the Amendment
        and agree that the Guaranty continues in full force and effect.

       

      
        
          
          

        

        
          
            

          

        

         

      

      

       

      IN
        WITNESS WHEREOF, this Consent has been duly executed by the Guarantors as
        of the
        day and year first set forth above.

       

      [Guarantors]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]