Document:

AMENDED AND RESTATED CREDIT
  AGREEMENT

  dated as of

  August 30, 2007

  among

  MACY'S, INC. 

  (formerly known as FEDERATED DEPARTMENT STORES, INC.)

  MACY'S RETAIL
  HOLDINGS, INC. 

  (formerly known as FEDERATED
  RETAIL HOLDINGS, INC.)

  The Lenders Party Hereto

  JPMORGAN CHASE BANK, N.A.

  and

  BANK OF AMERICA, N.A., 

  as Administrative Agents

  and

  JPMORGAN CHASE BANK, N.A.,

  as Paying Agent

  ___________________________

  J.P. MORGAN SECURITIES INC.

  and

  BANC OF AMERICA SECURITIES LLC,

  as Joint Bookrunners and Joint Lead Arrangers

  

[Reference No.
6701-495]

TABLE OF CONTENTS

Page

ARTICLE I

Definitions

SECTION 1.01...... Defined Terms................................................................................... 1

SECTION 1.02...... Classification of Loans and Borrowings............................................ 18

SECTION 1.03...... Terms Generally.............................................................................. 18

SECTION 1.04...... Accounting Terms; GAAP............................................................... 18

SECTION 1.05...... Amendment and Restatement........................................................... 19

ARTICLE II

The Credits

SECTION 2.01...... Commitments.................................................................................. 19

SECTION 2.02...... Loans and Borrowings..................................................................... 19

SECTION 2.03...... Requests for Revolving Borrowings.................................................. 20

SECTION 2.04...... Competitive Bid Procedure.............................................................. 21

SECTION 2.05...... Swingline Loans............................................................................... 23

SECTION 2.06...... Letters of Credit.............................................................................. 24

SECTION 2.07...... Funding of Borrowings..................................................................... 31

SECTION 2.08...... Interest Elections............................................................................. 31

SECTION 2.09...... Termination and Reduction of Commitments..................................... 33

SECTION 2.10...... Repayment of Loans; Evidence of Debt............................................ 33

SECTION 2.11...... Prepayment of Loans....................................................................... 34

SECTION 2.12...... Fees................................................................................................ 35

SECTION 2.13...... Interest............................................................................................ 36

SECTION 2.14...... Alternate Rate of Interest................................................................. 37

SECTION 2.15...... Increased Costs............................................................................... 38

SECTION 2.16...... Break Funding Payments................................................................. 39

SECTION 2.17...... Taxes.............................................................................................. 40

SECTION 2.18...... Payments Generally; Pro Rata Treatment;
Sharing of Set‐offs........... 41

SECTION 2.19...... Mitigation Obligations; Replacement of
Lenders............................... 43

SECTION 2.20...... Increase in Commitments................................................................. 43

SECTION 2.21...... Currency Fluctuations...................................................................... 44

SECTION 2.22...... Extension of Maturity Date............................................................... 45

ARTICLE III

Representations and Warranties

SECTION 3.01...... Organization.................................................................................... 46

SECTION 3.02...... Powers; Authorization; No Conflicts;
Enforceability.......................... 46

SECTION 3.03...... Approvals....................................................................................... 46

SECTION 3.04...... Financial Condition; No Material Adverse
Change........................... 47

SECTION 3.05...... Litigation......................................................................................... 47

SECTION 3.06...... Investment and Holding Company Status.......................................... 47

SECTION 3.07...... ERISA............................................................................................ 47

ARTICLE IV

Conditions

SECTION 4.01...... Effective Date.................................................................................. 48

SECTION 4.02...... Each Credit Event............................................................................ 49

ARTICLE V

Affirmative Covenants

SECTION 5.01...... Financial Statements; Ratings Change and
Other Information............ 49

SECTION 5.02...... Existence......................................................................................... 51

SECTION 5.03...... Payment of Obligations.................................................................... 51

SECTION 5.04...... Maintenance of Properties; Insurance............................................... 52

SECTION 5.05...... Books and Records; Inspection Rights............................................. 52

SECTION 5.06...... Compliance with Laws..................................................................... 52

SECTION 5.07...... Use of Proceeds and Letters of Credit............................................. 52

ARTICLE VI

Negative Covenants

SECTION 6.01...... Subsidiary Indebtedness.................................................................. 53

SECTION 6.02...... Liens............................................................................................... 53

SECTION 6.03...... Fundamental Changes; Conduct of Business..................................... 55

SECTION 6.04...... Sale and Leaseback Transactions..................................................... 56

SECTION 6.05...... Leverage Ratio................................................................................ 56

SECTION 6.06...... Interest Coverage Ratio................................................................... 56

ARTICLE VII

Events of Default

ARTICLE VIII

The Agents

ARTICLE IX

Miscellaneous

SECTION 9.01...... Notices........................................................................................... 61

SECTION 9.02...... Waivers; Amendments..................................................................... 62

SECTION 9.03...... Expenses; Indemnity; Damage Waiver.............................................. 63

SECTION 9.04...... Successors and Assigns................................................................... 64

SECTION 9.05...... Survival........................................................................................... 67

SECTION 9.06...... Counterparts; Integration; Effectiveness............................................ 67

SECTION 9.07...... Severability...................................................................................... 67

SECTION 9.08...... Right of Setoff................................................................................. 68

SECTION 9.09...... Governing Law; Jurisdiction; Consent to
Service of Process............. 68

SECTION 9.10...... WAIVER OF JURY TRIAL........................................................... 69

SECTION 9.11...... Headings......................................................................................... 69

SECTION 9.12...... Confidentiality.................................................................................. 69

SECTION 9.13...... Interest Rate Limitation.................................................................... 70

SECTION 9.14...... Patriot Act....................................................................................... 70

SECTION 9.15...... Conversion of Currencies................................................................. 70

SCHEDULES:

Schedule 2.01 -- Commitments

Schedule 6.01 -- Existing Indebtedness

Schedule 6.02 -- Existing Liens

EXHIBITS:

Exhibit A -- Form of Assignment and Assumption

Exhibit B -- Form of Opinion of Parent and
Borrower's Counsel

Exhibit C -- Form of Opinion of Dennis J.
Broderick

Exhibit D -- Form of Guarantee Agreement

  
    

     AMENDED AND RESTATED CREDIT AGREEMENT dated as of August 30,
2007, among MACY'S, INC. (formerly known as FEDERATED DEPARTMENT STORES, INC.),
MACY'S RETAIL HOLDINGS, INC. (formerly known as FEDERATED RETAIL HOLDINGS,
INC.), the LENDERS party hereto, JPMORGAN CHASE BANK, N.A. and BANK OF AMERICA,
N.A. as Administrative Agents and JPMORGAN CHASE BANK, N.A., as Paying Agent.

    

The parties
hereto agree as follows:

  

ARTICLE
I

Definitions

     SECTION
1.01.  Defined Terms.  As used in this Agreement, the following terms
have the meanings specified below:

     "ABR", when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the
Alternate Base Rate.

      "Acquisition" means the acquisition of
May by Federated Department Stores, Inc. (now known as Macy's, Inc.) pursuant
to the Merger Agreement, which resulted in the Borrower becoming a direct,
wholly owned subsidiary of Parent.

      "Adjusted LIBO Rate" means, with
respect to any Eurodollar Borrowing for any Interest Period, an interest rate
per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by (b) the
Statutory Reserve Rate.

     "Administrative Agent" means each of
JPMorgan Chase Bank, N.A. and Bank of America, N.A., each in its capacity as
administrative agent for the Lenders hereunder and under the other Loan
Documents. 

     "Administrative Questionnaire" means an
Administrative Questionnaire in a form supplied by the Paying Agent.

     "Affiliate" means, with respect to a
specified Person, another Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with
the Person specified.

     "Agents" means the Paying Agent and each
Administrative Agent.

     "Alternate Base Rate" means, for any
day, a rate per annum equal to the greater of (a) the Prime Rate in effect
on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1⁄2 of 1%.  Any change in the Alternate Base Rate due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective from and including
the effective date of such change in the Prime Rate or the Federal Funds
Effective Rate, respectively.

     "Alternate Currency" means any currency
other than dollars as to which a Spot Exchange Rate may be calculated.

     "Alternate Currency Letter of Credit" means
any Letter of Credit which provides for the payment of drawings in an Alternate
Currency.

     "Applicable Percentage" means, with
respect to any Lender, the percentage of the Total Commitments represented by
such Lender's Commitment.  If the Commitments have terminated or expired, the
Applicable Percentages shall be determined based upon the Commitments most
recently in effect, giving effect to any assignments.

     "Applicable Rate" means, for any day,
with respect to any Eurodollar Revolving Loan, or with respect to the facility
fees payable hereunder, as the case may be, the applicable rate per annum set
forth below under the caption "Eurodollar Spread" or "Facility Fee Rate", as
the case may be, based upon the Performance Level in effect on such date:

	
  Performance Level

  	
  Eurodollar Spread

  	
  Facility Fee Rate

  
	
  Level 1

  	
  0.19%

  	
  0.06%

  
	
  Level  2

  	
  0.23%

  	
  0.07%

  
	
  Level 3

  	
  0.27%

  	
  0.08%

  
	
  Level 4

  	
  0.31%

  	
  0.09%

  
	
  Level 5

  	
  0.40%

  	
  0.10%

  
	
  Level 6

  	
  0.50%

  	
  0.125%

  

          In the case of a
change in the Applicable Rate due to a change in the Interest Coverage Ratio,
such change shall be effective during the period commencing on the date of
receipt by the Paying Agent of financial statements pursuant to paragraph (a)
or (b) of Section 5.01 together with a certificate of a Financial Officer
of Parent demonstrating such Interest Coverage Ratio and ending on the date
immediately preceding the effective date of the next such change.  In the case
of a change in the Applicable Rate due to a change in the Public Debt Rating,
such change shall be effective during the period commencing on the date of
receipt by the Paying Agent of a certificate of a Financial Officer of Parent
pursuant to Section 5.01(f) setting forth such Public Debt Rating and
ending on the date immediately preceding the effective date of the next such
change.

     "Assignment and Assumption" means an
assignment and assumption entered into by a Lender and an assignee (with the
consent of any party whose consent is required by Section 9.04), and
accepted by the Paying Agent, in the form of Exhibit A or any other form
approved by the Paying Agent.

     "Augmenting Lender" has the meaning set
forth in Section 2.20(a).

     "Availability Period" means the period
from and including the Effective Date to but excluding the earlier of the
Maturity Date and the date of termination of the Commitments.

     "Board" means the Board of Governors of
the Federal Reserve System of the United States of America.

     "Borrower" means Macy's Retail Holdings,
Inc. (formerly known as Federated Retail Holdings, Inc.), a New York
corporation.

     "Borrowing" means (a) Revolving
Loans of the same Type, made, converted or continued on the same date and, in
the case of Eurodollar Loans, as to which a single Interest Period is in
effect, (b) a Competitive Loan or group of Competitive Loans of the same
Type made on the same date and as to which a single Interest Period is in
effect or (c) a Swingline Loan.

     "Borrowing Request" means a request by
the Borrower for a Revolving Borrowing in accordance with Section 2.03.

      "Business Day" means any day that is
not a Saturday, Sunday or other day on which commercial banks in New York
City are authorized or required by law to remain closed; provided that,
(a) when used in connection with a Eurodollar Loan, the term "Business
Day" shall also exclude any day on which banks are not open for dealings in
dollar deposits in the London interbank market and (b) when used in
connection with an Alternate Currency Letter of Credit, the term "Business Day"
shall also exclude any day on which commercial banks in the principal financial
center (as determined by the Paying Agent) of such Alternate Currency are
authorized or required by law to remain closed.

     "Calculation Date" means the last
Business Day of March, June, September and December of each year.

     "Capital Lease Obligations" of any
Person means the obligations of such Person to pay rent or other amounts under
any lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet of such
Person under GAAP, and the amount of such obligations shall be the capitalized
amount thereof determined in accordance with GAAP.

     "Change in Control" means (a) the
acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person or group (within the meaning of the Securities Exchange Act of 1934
and the rules of the Securities and Exchange Commission thereunder as in effect
on the date hereof), of Equity Interests representing more than 50% of the
aggregate ordinary voting power represented by the issued and outstanding
Equity Interests of Parent; (b) occupation of a majority of the seats
(other than vacant seats) on the board of directors of Parent by Persons who
were neither (i) nominated by the board of directors of Parent nor
(ii) appointed by directors so nominated; or (c) after the Effective
Date the Borrower ceases to be a direct, wholly owned subsidiary of Parent. 

     "Change in Law" means (a) the
adoption of any law, rule or regulation after the date of this Agreement,
(b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this
Agreement or (c) compliance by any Lender or Issuing Bank (or, for
purposes of Section 2.15(b), by any lending office of such Lender or by
such Lender's or Issuing Bank's holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

     "Class", when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are Revolving Loans, Competitive Loans or Swingline Loans.

     "Code" means the Internal Revenue Code
of 1986, as amended from time to time.

     "Commitment" means, with respect to each
Lender, the commitment of such Lender to make Revolving Loans and to acquire
participations in Letters of Credit and Swingline Loans hereunder, expressed as
an amount representing the maximum aggregate amount of such Lender's Revolving
Credit Exposure hereunder, as such commitment may be (a) reduced from time
to time pursuant to Section 2.09 and (b) reduced or increased from
time to time pursuant to assignments by or to such Lender pursuant to
Section 9.04.  The initial amount of each Lender's Commitment is set forth
on Schedule 2.01, or in the Assignment and Assumption pursuant to which
such Lender shall have assumed its Commitment, as applicable.  The initial
aggregate amount of the Lenders' Commitments is $2,000,000,000.

     "Commitment Increase" has the meaning
set forth in Section 2.20(b).

     "Competitive Bid" means an offer by a
Lender to make a Competitive Loan in accordance with Section 2.04.

     "Competitive Bid Rate" means, with
respect to any Competitive Bid, the Margin or the Fixed Rate, as applicable,
offered by the Lender making such Competitive Bid.

     "Competitive Bid Request" means a
request by the Borrower for Competitive Bids in accordance with
Section 2.04.

      "Competitive Loan" means a Loan made
pursuant to Section 2.04.

     "Consenting Lender" has the meaning set
forth in Section 2.22(b).

     "Consolidated EBITDA" means, for any
period, (a) the sum, of (i) net income (or net loss),
(ii) interest expense, (iii) income tax expense,
(iv) depreciation expense, (v) amortization expense (including
amortization of (A) excess of cost over net assets acquired,
(B) reorganization value in excess of amounts allocable to identifiable
assets and (C) unearned restricted stock), (vi) unusual and
extraordinary losses and (vii) non-recurring charges in an aggregate
amount for all periods commencing on or after July 31, 2005 not to exceed
$800,000,000 in respect of (A) store, corporate office and support
function closings, eliminations, relocations and divisional realignments,
(B) employee severance costs and (C) fees, costs and expenses, in the
case of clauses (A), (B) and (C) resulting from, or incurred in connection
with, the Acquisition, less (b) the sum of (i) unusual and
extraordinary gains and (ii) interest income, in each case in
clauses (a) and (b) of Parent and the Subsidiaries, determined on a
consolidated basis in accordance with GAAP.

     "Consolidated
Net Debt" means, at any date of determination, the aggregate principal
amount of Indebtedness of any of Parent and the Subsidiaries outstanding as of
such date, determined on a consolidated basis in accordance with GAAP, net of
the aggregate amount of invested cash equivalents (excluding cash and demand
deposits) held by Parent or any Subsidiary as of such date, excluding any such
cash equivalents that (a) are subject to any Liens, (b) are subject
to any restrictions on the use or disposition thereof or (c) are held by a
Subsidiary, to the extent such Subsidiary is subject to any restriction on the
distribution of such cash equivalents without prior approval or waiver (that
has not been obtained), pursuant to the terms of such Subsidiary's
organizational documents or any agreement, judgment, order, law or other
restriction binding upon such Subsidiary; provided that any write-ups or
write-downs of long-term Indebtedness (including current portions) of May or
its subsidiaries as a result of the Acquisition shall be disregarded for
purposes of determining Consolidated Net Debt.

     "Consolidated Net Interest Expense"
means, for any period, the amount (if any) by which (a) interest payable
on all Indebtedness (including the interest component of Capitalized Lease
Obligations, but excluding tender premiums) and amortization of deferred
financing fees and debt discount in respect of all Indebtedness exceeds
(b) interest income, in each case in clauses (a) and (b) of Parent
and the Subsidiaries, determined on a consolidated basis in accordance with
GAAP; provided that any write-ups or write-downs of
long-term Indebtedness of May (including current portions) or its subsidiaries
as a result of the Acquisition, and any related amortization expense resulting
therefrom, shall be disregarded for purposes of determining Consolidated Net
Interest Expense.

     "Consolidated Net Tangible Assets"
means, at any date of determination,  (a) the aggregate amount of assets (less
applicable reserves and other properly deductible items), minus (b) all current
liabilities, minus (c) all goodwill, trade names, trademarks, patents, unamortized
debt discount and expense and other like intangibles, in each case in clauses
(a), (b) and (c) of Parent and the Subsidiaries, determined on a consolidated
basis in accordance with GAAP; provided that any write-ups or
write-downs of long-term Indebtedness of May (including current portions) or
its subsidiaries as a result of the Acquisition, and any related amortization
expense resulting therefrom, shall be disregarded for purposes of determining
Consolidated Net Tangible Assets.

     "Consolidated
Net Worth" means, at any date of determination, the total consolidated
stockholders' equity of Parent, determined as of such date in accordance with
GAAP.

     "Control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ability to exercise voting power,
by contract or otherwise.  "Controlling" and "Controlled" have
meanings correlative thereto.

     "Declining Lender" has the meaning set
forth in Section 2.22(b).

     "Default" means any event or condition
which constitutes an Event of Default or which upon notice, lapse of time or
both would, unless cured or waived, become an Event of Default.

     "Documentary LC" means any letter of
credit (other than a Letter of Credit) that is issued by a Person that is not
an Affiliate of Parent for the benefit of a supplier of inventory to Parent or
any Subsidiary to effect payment for such inventory.

     "dollars" or "$" refers to lawful
money of the United States of America.

     "Dollar Amount" means, with respect to
any Alternate Currency Letter of Credit or LC Disbursement in respect thereof,
the amount determined pursuant to Section 2.06(m).

     "Dollar Equivalent" means, on any date
of determination, (a) with respect to any amount in dollars, such amount,
and (b) with respect to any amount in any Alternate Currency, the
equivalent in dollars of such amount, determined by the Paying Agent pursuant
to Section 2.21(a) using the relevant Dollar Amount.

     "Effective Date" means the date on which
the conditions specified in Section 4.01 are satisfied (or waived in
accordance with Section 9.02).

     "Equity Interests" means shares of
capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the
holder thereof to purchase or acquire any such equity interest.

     "ERISA" means the Employee Retirement
Income Security Act of 1974, as amended from time to time.

     "ERISA Affiliate" means any trade or
business (whether or not incorporated) that, together with Parent, is treated
as a single employer under Section 414(b) or (c) of the Code or, solely
for purposes of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the Code.

     "ERISA Event" means (a) any
"reportable event", as defined in Section 4043 of ERISA or the regulations
issued thereunder with respect to a Plan (other than an event for which the 30‐day
notice period is waived); (b) the existence with respect to any Plan of an
"accumulated funding deficiency" (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant
to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by Parent or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any
Plan; (e) the receipt by Parent or any ERISA Affiliate from the PBGC or a
plan administrator of any notice relating to an intention to terminate any Plan
or Plans or to appoint a trustee to administer any Plan; (f) the
incurrence by Parent or any of its ERISA Affiliates of any liability with
respect to the withdrawal or partial withdrawal from any Plan or Multiemployer
Plan; or (g) the receipt by Parent or any ERISA Affiliate of any notice,
or the receipt by any Multiemployer Plan from Parent or any ERISA Affiliate of
any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA.

     "Eurodollar", when used in reference to
any Loan or Borrowing, refers to whether such Loan, or the Loans comprising
such Borrowing, are bearing interest at a rate determined by reference to the
Adjusted LIBO Rate (or, in the case of a Competitive Loan, the LIBO Rate).

     "Event of Default" has the meaning
assigned to such term in Article VII.

     "Excluded Taxes" means, with respect to
the Paying Agent, any Lender, any Issuing Bank or any other recipient of any
payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its
net income by the United States of America, or by the jurisdiction under the
laws of which such recipient is organized or in which its principal office is
located or, in the case of any Lender, in which its applicable lending office
is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which any
Lender is located and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 2.19(b)), any
withholding tax that is imposed on amounts payable to such Foreign Lender at
the time such Foreign Lender becomes a party to this Agreement (or designates a
new lending office) or is attributable to such Foreign Lender's failure to
comply with Section 2.17(e), except to the extent that such Foreign Lender
(or its assignor, if any) was entitled, at the time of designation of a new
lending office (or assignment), to receive additional amounts from the Borrower
with respect to such withholding tax pursuant to Section 2.17(a).

     "Existing Credit Agreement" means the
Amended and Restated Credit Agreement dated as of August 30, 2006, among
Parent, the Borrower, the lenders 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.

     "Existing Indebtedness" has the meaning
assigned to such term in Section 6.01(b).

     "Existing Letter of Credit" means any
letter of credit issued for the account of Parent or the Borrower and
outstanding on the Effective Date under the Existing Credit Agreement; provided
that (a) the issuer of such letter of credit is a Lender and such Lender
becomes an Issuing Bank under this Agreement pursuant to Section 2.06 and
(b) Parent or the Borrower and such Lender consent to such letter of credit
becoming a Letter of Credit.

     "Existing Maturity Date" has the meaning
set forth in Section 2.22(c).

     "Extension Date" has the meaning set
forth in Section 2.22(b).

     "Federal Funds Effective Rate" means,
for any day, the weighted average (rounded upwards, if necessary, to the next
1/100 of 1%) of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers, as published
on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a
Business Day, the average (rounded upwards, if necessary, to the next 1/100 of
1%) of the quotations for such day for such transactions received by the Paying
Agent from three Federal funds brokers of recognized standing selected by it.

     "Financial Officer" means the chief
financial officer, principal accounting officer, treasurer or controller of
Parent or the Borrower, as applicable.

     "Fixed Rate" means, with respect to any
Competitive Loan (other than a Eurodollar Competitive Loan), the fixed rate of
interest per annum specified by the Lender making such Competitive Loan in its
related Competitive Bid.

     "Fixed Rate Loan" means a Competitive
Loan bearing interest at a Fixed Rate.

     "Foreign Lender" means any Lender that
is organized under the laws of a jurisdiction other than that in which the
Borrower is located.  For purposes of this definition, the United States of
America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

     "GAAP" means generally accepted
accounting principles in the United States of America.

     "Governmental Authority" means the
government of the United States of America, any other nation or any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

     "Guarantee" of or by any Person (the "guarantor")
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person (the "primary obligor") in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct
or indirect, (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the
payment thereof, (b) to purchase or lease property, securities or services
for the purpose of assuring the owner of such Indebtedness or other obligation
of the payment thereof, (c) to maintain working capital, equity capital or
any other financial statement condition or liquidity of the primary obligor so
as to enable the primary obligor to pay such Indebtedness or other obligation
or (d) as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or obligation; provided,
that the term Guarantee shall not include endorsements for collection or
deposit in the ordinary course of business.

     "Guarantee Agreement" means the Amended
and Restated Guarantee Agreement among Parent, the Borrower and the Paying
Agent substantially in the form of Exhibit D hereto.

     "Indebtedness" of any Person means,
without duplication, (a) all obligations of such Person for borrowed
money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments (other than performance, surety and appeals bonds
arising in the ordinary course of business), (c) all obligations of such
Person upon which interest charges are customarily paid, (d) all
obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person, (e) all
obligations of such Person in respect of the deferred purchase price of
property or services (other than obligations for property (excluding real
property, capital stock and property subject to capital leases) and services
purchased, and expense accruals and deferred compensation items arising in the
ordinary course of business), (f) all Indebtedness of others secured by
(or for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed,
(g) all Guarantees by such Person of Indebtedness of others, (h) all
Capital Lease Obligations of such Person, (i) all obligations, contingent
or otherwise, of such Person as an account party in respect of letters of
credit and letters of guaranty and (j) all obligations, contingent or
otherwise, of such Person in respect of bankers' acceptances.  The Indebtedness
of any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such
Person is liable therefor under applicable law as a result of such Person's
ownership interest in or other relationship with such entity, except to the
extent the terms of such Indebtedness provide that such Person is not liable
therefor.

     "Indemnified Taxes" means Taxes other
than Excluded Taxes.

      "Initial Loans" has the meaning set
forth in Section 2.20(b).

     "Interest Coverage Ratio" means, at any
date of determination, the ratio of (a) Consolidated EBITDA for the
Measurement Period then most recently ended to (b) Consolidated Net
Interest Expense for such Measurement Period.

     "Interest Election Request" means a
request by the Borrower to convert or continue a Revolving Borrowing in
accordance with Section 2.08.

     "Interest Payment Date" means
(a) with respect to any ABR Loan (other than a Swingline Loan), the last
day of each March, June, September and December, (b) with respect to any
Eurodollar Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurodollar
Borrowing with an Interest Period of more than three months' duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months' duration after the first day of such Interest Period, (c) with
respect to any Fixed Rate Loan, the last day of the Interest Period applicable
to the Borrowing of which such Loan is a part and, in the case of a Fixed Rate
Borrowing with an Interest Period of more than 90 days' duration (unless
otherwise specified in the applicable Competitive Bid Request), each day prior
to the last day of such Interest Period that occurs at intervals of
90 days' duration after the first day of such Interest Period, and any other
dates that are specified in the applicable Competitive Bid Request as Interest
Payment Dates with respect to such Borrowing and (d) with respect to any
Swingline Loan, the day that such Loan is required to be repaid.

     "Interest Period" means (a) with
respect to any Eurodollar Borrowing, the period commencing on the date of such
Borrowing and ending on the numerically corresponding day in the calendar month
that is seven days or one, two, three or six months thereafter, as the
Borrower may elect and (b) with respect to any Fixed Rate Borrowing, the
period (which shall not be less than seven days or more than
180 days) commencing on the date of such Borrowing and ending on the date
specified in the applicable Competitive Bid Request; provided, that
(i) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day
unless, in the case of a Eurodollar Borrowing only, such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day and (ii) any Interest
Period pertaining to a Eurodollar Borrowing that commences on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding
day in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period.  For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall
be the effective date of the most recent conversion or continuation of such
Borrowing.

     "Issuing Bank" means, as the context may
require, (a) JPMorgan Chase Bank, N.A., (b) Bank of America, N.A.,
and (c) any other Lender that becomes an Issuing Bank pursuant to
Section 2.06(k), in each case, in its capacity as an issuer of Letters of
Credit hereunder, and each such Person's successors in such capacity as
provided in Section 2.06(i).  Any Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of such
Issuing Bank, in which case the term "Issuing Bank" shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate.

     "LC Disbursement" means a payment made
by an Issuing Bank pursuant to a Letter of Credit.

     "LC Exposure" means, at any time, the
sum of (a) the aggregate undrawn amount of all outstanding Letters of
Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the Borrower at such
time.  In the case of any Alternate Currency Letters of Credit or any LC
Disbursement in respect thereof, the LC Exposure attributable thereto shall be
the Dollar Amount thereof.  The LC Exposure of any Lender at any time shall be
its Applicable Percentage of the total LC Exposure at such time.

     "Lenders" means the Persons listed on
Schedule 2.01 and any other Person that shall have become a party hereto
pursuant to an Assignment and Assumption, other than any such Person that
ceases to be a party hereto pursuant to an Assignment and Assumption.  Unless
the context otherwise requires, the term "Lenders" includes each Swingline
Lender.

     "Letter of Credit" means each Existing
Letter of Credit and any letter of credit issued pursuant to this Agreement.

     "Leverage Ratio" means, at any date of
determination, the ratio of (a) Consolidated Net Debt to (b) the sum
of Consolidated Net Debt plus Consolidated Net Worth.

     "LIBO Rate" means, with respect to any
Eurodollar Borrowing for any Interest Period, the rate appearing on
Page 3750 of the Dow Jones Market Service (or on any successor or
substitute page of such Service, or any successor to or substitute for such
Service, providing rate quotations comparable to those currently provided on
such page of such Service, as determined by the Paying Agent from time to time
for purposes of providing quotations of interest rates applicable to dollar
deposits in the London interbank market) at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period, as the rate for dollar deposits with a maturity comparable to such
Interest Period.  In the event that such rate is not available at such time for
any reason, then the "LIBO Rate" with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which dollar deposits
of $5,000,000 and for a maturity comparable to such Interest Period are offered
by the principal London office of the Paying Agent in immediately available
funds in the London interbank market at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period.

     "Lien" means, with respect to any asset,
(a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance,
charge or security interest in, on or of such asset, (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset and (c) in
the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

     "Loan Documents" means this Agreement
and the Guarantee Agreement.

     "Loan Parties" means Parent and the
Borrower.

     "Loans" means the loans made by the
Lenders to the Borrower pursuant to this Agreement.

     "Margin" means, with respect to any
Competitive Loan bearing interest at a rate based on the LIBO Rate, the
marginal rate of interest, if any, to be added to or subtracted from the LIBO
Rate to determine the rate of interest applicable to such Loan, as specified by
the Lender making such Loan in its related Competitive Bid.

     "Material Adverse Effect" means an
effect that causes or results in or has a reasonable likelihood of causing or
resulting in any material adverse change in (a) the business, condition
(financial or otherwise), operations, performance or properties of Parent and
the Subsidiaries, taken as a whole, (b) the rights and remedies of any Agent or
any Lender under any Loan Document, (c) the ability of the Loan Parties, taken
as a whole, to perform their obligations under any Loan Document or (d) the
legality, validity or enforceability of any Loan Document.

     "Material Indebtedness" means
Indebtedness (other than the Loans and Letters of Credit), or obligations in
respect of one or more Swap Agreements, of any one or more of Parent and its
Subsidiaries in an aggregate principal amount exceeding $150,000,000.  For
purposes of determining Material Indebtedness, the "principal amount" of the
obligations of Parent or any Subsidiary in respect of any Swap Agreement at any
time shall be the maximum aggregate amount (giving effect to any netting
agreements) that Parent or such Subsidiary would be required to pay if such
Swap Agreement were terminated at such time.

     "Material Subsidiary" means, as of any
date of determination, (a) the Borrower and (b) any other Subsidiary
having (i) assets with a value of not less than 5% of the total value of
the assets of Parent and its consolidated subsidiaries, taken as a whole, or
(ii) Consolidated EBITDA of not less than 5% of the Consolidated EBITDA of
Parent and its consolidated subsidiaries, taken as a whole, in each case as of
the end of or for the most recently completed fiscal year of Parent.

     "Maturity Date" means the date that is
five years after the Effective Date, subject to extension pursuant to Section
2.22; provided that if such date is not a Business Day, then the
Maturity Date shall be the next succeeding Business Day.

     "Maturity Date Extension Request" has
the meaning set forth in Section 2.22(a).

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

     "Measurement Period" means the period of
four fiscal quarters of Parent then most recently ended for which the Paying
Agent has received (or should have received) financial statements in compliance
with paragraphs (a) or (b) of Section 5.01.

     "Merger Agreement" means the Agreement
and Plan of Merger dated as of February 27, 2005, by and among Federated
Department Stores, Inc. (now known as Macy's, Inc.), Milan Acquisition Corp., a
Delaware corporation, and May.

     "Minor Subsidiary" means any Subsidiary
that is not a Material Subsidiary.

     "Moody's" means Moody's Investors
Service, Inc. or any successor thereto.

     "Multiemployer Plan" means a
multiemployer plan as defined in Section 4001(a)(3) of ERISA.

     "Obligations" has the meaning assigned
to such term in the Guarantee Agreement.

     "Other Taxes" means any and all present
or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies arising from any payment made under any Loan Document
or from the execution, delivery or enforcement of, or otherwise with respect
to, any Loan Document.

     "Parent" means Macy's, Inc. (formerly
known as Federated Department Stores, Inc.), a Delaware corporation.

     "Participant" has the meaning set forth
in Section 9.04.

     "Patriot Act" means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107‐56
(signed into law October 26, 2001)).

     "Paying Agent" means JPMorgan Chase
Bank, N.A., in its capacity as paying agent for the Lenders hereunder and under
the other Loan Documents.

     "PBGC" means the Pension Benefit
Guaranty Corporation referred to and defined in ERISA and any successor entity
performing similar functions.

     "Performance Level" means as of any date
of determination, the numerically lower Performance Level set forth below as
then in effect, as determined by reference to the Public Debt Rating and
Interest Coverage Ratio then in effect:

	
  Performance Level

  	
  Public Debt Rating

  	
  Interest Coverage Ratio

  
	
  Level 1

  	
  A1, A+ or higher

  	
  Greater than or equal to 7.0 to 1.00

  
	
  Level 2

  	
   A2 or A

  	
  Greater than or equal to 6.25 to 1.00 and less than 7.00 to
  1.00

  
	
  Level 3

  	
  A3 or A-

  	
  Greater than or equal to 5.75 to 1.00 and less than 6.25 to
  1.00

  
	
  Level 4

  	
  Baa1 or BBB+

  	
  Greater than or equal to 5.00 to 1.00 and less than 5.75 to
  1.00

  
	
  Level 5

  	
  Baa2 or BBB

  	
   Greater than or equal to 4.50 to 1.00 and less than 5.00 to
  1.00

  
	
  Level 6

  	
  Lower
  than Baa2 or BBB

  	
  Less than 4.50 to 1.00

  

          Notwithstanding the foregoing, (i)  if
neither Moody's nor S&P shall have in effect a Public Debt Rating as of
such date of determination, then the applicable Performance Level shall be
determined solely by reference to the Interest Coverage Ratio as of such date
of determination and (ii) at any time an Event of Default has occurred and
is continuing, the applicable Performance Level shall be determined solely by
reference to the Public Debt Rating (or if neither Moody's nor S&P shall
have in effect a Public Debt Rating at such time, then the Performance Level
shall be Level 6).

          For purposes of the foregoing, "Public Debt
Rating" means, as of any date of determination, the higher of (a) the
lowest rating that has been most recently announced by Moody's for any class of
non-credit enhanced long-term senior unsecured Indebtedness issued by the
Borrower and (b) the rating that has been most recently announced by
S&P as the Borrower's "Corporate Credit Rating"; provided that if
the ratings referred to in clause (a) and (b) above are each referred to
in Performance Levels that are more than one Performance Level apart, the
applicable Public Debt Rating as of such date of determination shall be the
Public Debt Rating indicated within the Performance Level that is numerically
one below the numerically higher of the two Performance Levels in which the
ratings are so referenced.  For purposes of the foregoing, (i) if only one
of S&P and Moody's shall have in effect a Public Debt Rating, the
applicable Performance Level shall be determined by reference to the available
rating and (ii) if Moody's or S&P shall change the basis on which
ratings are established, each reference to the Public Debt Rating announced by
Moody's or S&P, as the case may be, shall refer to the then equivalent
rating by Moody's or S&P, as the case may be.

     "Permitted
Encumbrances" means:

(a) Liens imposed by law for taxes that are not yet
due or are being contested in compliance with Section 5.03;

(b) carriers', warehousemen's, mechanics',
materialmen's, repairmen's and other like Liens imposed by law, arising in the
ordinary course of business and securing obligations that are not overdue by
more than 30 days or are being contested in good faith by proper
proceedings;

(c) Liens (if any) arising by operation of law and
pledges and deposits made in the ordinary course of business in compliance with
workers' compensation, unemployment insurance, old-age pensions and other
social security laws or regulations;

(d) deposits to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in each case in the ordinary
course of business;

(e) judgment liens in respect of judgments that do not
constitute an Event of Default under clause (k) of Article VII; and

(f) easements, zoning restrictions, rights-of-way and
similar encumbrances on real property imposed by law or arising in the ordinary
course of business that do not materially detract from the value of the
affected property to Parent or any Subsidiary or interfere with the ordinary
conduct of business of Parent or any Subsidiary;

provided that the term "Permitted
Encumbrances" shall not include any Lien securing Indebtedness.

     "Person" means any natural person,
corporation, limited liability company, trust, joint venture, association,
company, partnership, Governmental Authority or other entity.

     "Plan" means any employee pension
benefit plan (other than a Multiemployer Plan) subject to the provisions of
Title IV of ERISA or Section 412 of the Code or Section 302 of
ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA be deemed to
be) an "employer" as defined in Section 3(5) of ERISA.

     "Public Debt Rating" has the meaning set
forth in the definition of the term "Performance Level".

     "Prime Rate" means the rate of interest
per annum publicly announced from time to time by JPMorgan Chase Bank, N.A., as
its prime rate in effect at its principal office in New York City; each
change in the Prime Rate shall be effective from and including the date such
change is publicly announced as being effective.

     "Receivables Financing Facility" means
the receivables financing facilities currently established by Parent and any
replacement thereof or other receivables financings pursuant to which certain
Subsidiaries issue non-recourse Indebtedness and commercial paper secured by
certain receivables of Parent and the Subsidiaries.

     "Register" has the meaning set forth in
Section 9.04.

     "Related Parties" means, with respect to
any specified Person, such Person's Affiliates and the respective directors,
officers, employees, agents and advisors of such Person and such Person's
Affiliates.

     "Required Lenders" means, at any time,
Lenders having Revolving Credit Exposures and unused Commitments representing
more than 50% of the sum of the total Revolving Credit Exposures and unused
Commitments at such time; provided that, for purposes of declaring the
Loans to be due and payable pursuant to Article VII, and for all purposes
after the Loans become due and payable pursuant to Article VII and the
Commitments expire or terminate, the outstanding Competitive Loans of the
Lenders shall be included in their respective Revolving Credit Exposures in
determining the Required Lenders.

     "Reset Date" has the meaning set forth
in Section 2.21(a).

     "Responsible Officer" means any
executive officer of Parent or any Subsidiary or any other officer of Parent or
any Subsidiary responsible for overseeing or reviewing compliance with this
Agreement or any other Loan Document.

     "Revolving Credit Exposure" means, with
respect to any Lender at any time, the sum of the outstanding principal amount
of such Lender's Revolving Loans and its LC Exposure and Swingline Exposure at
such time.

     "Revolving Loan" means a Loan made
pursuant to Section 2.03.

     "S&P" means Standard &
Poor's Ratings Service or any successor thereto.

     "Spot Exchange Rate" means, on any day,
with respect to any Alternate Currency in which an Alternate Currency Letter of
Credit (or LC Disbursement thereunder) is denominated, the spot rate at which
dollars are offered on such day by the applicable Issuing Bank (or the Paying
Agent, in the case of determinations made by it) in London (or, in its
discretion, any other city in which it conducts its foreign exchange activities
in such Alternate Currency) for such Alternate Currency at approximately
11:00 a.m. (local time in London or such other city).

     "Statutory Reserve Rate" means a
fraction (expressed as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board to which the Paying
Agent is subject for eurocurrency funding (currently referred to as
"Eurocurrency Liabilities" in Regulation D of the Board).  Such reserve
percentages shall include those imposed pursuant to such Regulation D. 
Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under such Regulation D or any comparable regulation.  The
Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     "subsidiary" means, with respect to any
Person (the "parent") at any date, any corporation, limited liability
company, partnership, association or other entity of which securities or
other ownership interests representing more than 50% of the equity or more than
50% of the ordinary voting power or, in the case of a partnership, more than
50% of the general partnership interests are, as of such date, owned,
controlled or held by the parent or one or more subsidiaries of the parent or
by the parent and one or more subsidiaries of the parent.

     "Subsidiary" means any subsidiary of
Parent.

     "Swap Agreement" means any agreement
with respect to any swap, forward, future or derivative transaction or option
or similar agreement involving, or settled by reference to, one or more rates,
currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk
or value or any similar transaction or any combination of these transactions; provided
that no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of Parent or the Subsidiaries shall be a Swap Agreement.

     "Swingline Exposure" means, at any time,
the aggregate principal amount of all Swingline Loans outstanding at such
time.  The Swingline Exposure of any Lender at any time shall be its Applicable
Percentage of the total Swingline Exposure at such time.

     "Swingline Lender" means, as the context
may require, (a) JPMorgan Chase Bank, N.A., (b) Bank of America,
N.A., and (c) any other Lender that becomes a Swingline Lender pursuant to
Section 2.05(d), in each case in its capacity as lender of Swingline Loans
hereunder.

     "Swingline Loan" means a Loan made
pursuant to Section 2.05.

     "Taxes" means any and all present or
future taxes, levies, imposts, duties, deductions, charges or withholdings
imposed by any Governmental Authority.

     "Total Commitments" means, at any time,
the aggregate amount of the Lenders' Commitments at such time.

     "Trade Letter of Credit" means any
Letter of Credit that is issued for the benefit of a supplier of inventory to
Parent or any Subsidiary to effect payment for such inventory, the conditions
to drawing under which include the presentation to the applicable Issuing Bank
of negotiable bills of lading, invoices and related documents sufficient, in
the judgment of such Issuing Bank, to create a valid and perfected lien on or
security interest in such inventory, bills of lading, invoices and related
documents in favor of such Issuing Bank.

     "Transactions" means the execution,
delivery and performance by each Loan Party of the Loan Documents to which it
is to be a party, the borrowing of Loans, the use of the proceeds thereof and
the issuance of Letters of Credit hereunder.

     "Type", when used in reference to any
Loan or Borrowing, refers to whether the rate of interest on such Loan, or on
the Loans comprising such Borrowing, is determined by reference to the Adjusted
LIBO Rate, the Alternate Base Rate or, in the case of a Competitive Loan or
Borrowing, the LIBO Rate or a Fixed Rate.

     "Withdrawal Liability" means liability
to a Multiemployer Plan as a result of a complete or partial withdrawal from
such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

     SECTION 1.02.  Classification
of Loans and Borrowings.  For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g., a "Revolving Loan") or by
Type (e.g., a "Eurodollar Loan") or by Class and Type (e.g., a
"Eurodollar Revolving Loan").  Borrowings also may be classified and referred
to by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a
"Eurodollar Borrowing") or by Class and Type (e.g., a "Eurodollar
Revolving Borrowing").

     SECTION 1.03.  Terms
Generally.  The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined.  Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms.  The words "include", "includes" and "including" shall be deemed
to be followed by the phrase "without limitation".  The word "will" shall be
construed to have the same meaning and effect as the word "shall".  Unless the
context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented
or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein
to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of
similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement and
(e) the words "asset" and "property" shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights.

     SECTION 1.04.  Accounting
Terms; GAAP.  Except as otherwise expressly provided herein, all terms of
an accounting or financial nature shall be construed in accordance with GAAP,
as in effect from time to time; provided that if the Borrower notifies
the Paying Agent that the Borrower requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the date hereof in
GAAP or in the application thereof on the operation of such provision (or if
the Paying Agent notifies the Borrower that the Required Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any
such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in
accordance herewith.

     SECTION 1.05.  Amendment
and Restatement.  (a)  Upon the effectiveness of this Agreement, this
Agreement amends, restates and supersedes in its entirety the Existing Credit
Agreement.  Notwithstanding the foregoing, upon the effectiveness of this
Agreement (i) all Loans outstanding under the Existing Credit Agreement, and
all interest, fees, charges and other amounts accrued and unpaid under the
Existing Credit Agreement, shall be due and payable in full on the Effective
Date and (ii) all indemnities and other liabilities and obligations of the
Borrower and Parent under the Existing Credit Agreement which relate to events
or conditions occurring prior to the date hereof and which are stated by their
terms to survive the termination of the Existing Credit Agreement shall remain
liabilities and obligations of the Borrower and Parent in accordance with the
terms of the Existing Credit Agreement.

(b)  This Agreement is given in substitution of the
Existing Credit Agreement and not as payment of any of the obligations of the
Borrower thereunder, and is in no way intended to constitute a novation of the
Existing Credit Agreement.

(c)  This Agreement amends, restates and supersedes
only the Existing Credit Agreement.  Nothing contained herein, unless expressly
herein stated to the contrary, is intended to amend, modify or otherwise affect
any other instrument, document or agreement executed and/or delivered in
connection with the Existing Credit Agreement.

ARTICLE
II

The Credits

     SECTION 2.01.  Commitments. 
Subject to the terms and conditions set forth herein, each Lender agrees to
make Revolving Loans to the Borrower from time to time during the Availability
Period in an aggregate principal amount that will not result in (a) such
Lender's Revolving Credit Exposure exceeding such Lender's Commitment or
(b) the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans exceeding the Total
Commitments.  Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow
Revolving Loans.

     SECTION 2.02.  Loans and
Borrowings.  (a)  Each Revolving Loan shall be made as part of a
Borrowing consisting of Revolving Loans made by the Lenders ratably in
accordance with their respective Commitments.  Each Competitive Loan shall be
made in accordance with the procedures set forth in Section 2.04.  The
failure of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations hereunder; provided that the
Commitments and Competitive Bids of the Lenders are several and no Lender shall
be responsible for any other Lender's failure to make Loans as required.

(b)  Subject to Section 2.14, (i) each
Revolving Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans
as the Borrower may request in accordance herewith, and (ii) each
Competitive Borrowing shall be comprised entirely of Eurodollar Loans or Fixed
Rate Loans as the Borrower may request in accordance herewith.  Each Swingline
Loan shall be an ABR Loan.  Each Lender at its option may make any Eurodollar
Loan by causing any domestic or foreign branch or Affiliate of such Lender to
make such Loan; provided that any exercise of such option shall not
affect the obligation of the Borrower to repay such Loan in accordance with the
terms of this Agreement.

(c)  At the commencement of each Interest Period
for any Eurodollar Revolving Borrowing, such Borrowing shall be in an aggregate
amount that is an integral multiple of $5,000,000 and not less than
$5,000,000.  At the time that each ABR Revolving Borrowing is made, such
Borrowing shall be in an aggregate amount that is an integral multiple of
$5,000,000 and not less than $5,000,000; provided that an ABR Revolving
Borrowing may be in an aggregate amount that is equal to the entire unused
balance of the Total Commitments or that is required to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.06(e). 
Each request for a Competitive Borrowing shall be in an aggregate amount that
is an integral multiple of $1,000,000 and not less than $10,000,000.  Each
Swingline Loan shall be in an amount that is an integral multiple of $1,000,000
and not less than $5,000,000.  Borrowings of more than one Type and Class may
be outstanding at the same time; provided that there shall not at any
time be more than a total of ten Eurodollar Revolving Borrowings outstanding.

(d)  Notwithstanding any other provision of this
Agreement, the Borrower shall not be entitled to request, or to elect to
convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Maturity Date.

     SECTION 2.03.  Requests
for Revolving Borrowings.  To request a Revolving Borrowing, the Borrower
shall notify the Paying Agent of such request by telephone (a) in the case
of a Eurodollar Borrowing, not later than 11:00 a.m.,
New York City time, three Business Days before the date of the
proposed Borrowing or (b) in the case of an ABR Borrowing, not later than
11:00 a.m., New York City time on the date of the proposed
Borrowing; provided that any such notice of an ABR Revolving Borrowing
to finance the reimbursement of an LC Disbursement as contemplated by
Section 2.06(e) may be given not later than 10:00 a.m., New York City
time, on the date of the proposed Borrowing.  Each such telephonic Borrowing
Request shall be irrevocable and shall be confirmed promptly by hand delivery
or telecopy to the Paying Agent of a written Borrowing Request in a form
approved by the Paying Agent and signed by the Borrower.  Each such telephonic
and written Borrowing Request shall specify the following information in
compliance with Section 2.02:

  

(i) the aggregate amount of the requested Borrowing;

(ii) the date of such Borrowing, which shall be a Business Day;

(iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing;

(iv) in the case of a Eurodollar Borrowing, the initial Interest Period to
be applicable thereto, which shall be a period contemplated by the definition
of the term "Interest Period"; and

(v) the location and number of the Borrower's account to which funds are to
be disbursed, which shall comply with the requirements of Section 2.07.

  

If no election as to the Type of Revolving Borrowing
is specified, then the requested Revolving Borrowing shall be an ABR
Borrowing.  If no Interest Period is specified with respect to any requested
Eurodollar Revolving Borrowing, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration.  Promptly following
receipt of a Borrowing Request in accordance with this Section, the Paying
Agent shall advise each Lender of the details thereof and of the amount of such
Lender's Loan to be made as part of the requested Borrowing.

     SECTION 2.04.  Competitive
Bid Procedure.  (a)  Subject to the terms and conditions set forth
herein, from time to time during the Availability Period the Borrower may
request Competitive Bids and may (but shall not have any obligation to) accept
Competitive Bids and borrow Competitive Loans; provided that the sum of
the total Revolving Credit Exposures plus the aggregate principal amount of
outstanding Competitive Loans at any time shall not exceed the Total
Commitments.  To request Competitive Bids, the Borrower shall notify the Paying
Agent of such request by telephone, in the case of a Eurodollar Borrowing, not later
than 11:00 a.m., New York City time, four Business Days before the
date of the proposed Borrowing and, in the case of a Fixed Rate Borrowing, not
later than 10:00 a.m., New York City time, one Business Day before
the date of the proposed Borrowing; provided that the Borrower may
submit up to (but not more than) three Competitive Bid Requests on the same
day, but a Competitive Bid Request shall not be made within five Business Days
after the date of any previous Competitive Bid Request, unless any and all such
previous Competitive Bid Requests shall have been withdrawn or all Competitive
Bids received in response thereto rejected.  Each such telephonic Competitive
Bid Request shall be confirmed promptly by hand delivery or telecopy to the
Paying Agent of a written Competitive Bid Request in a form approved by the
Paying Agent and signed by the Borrower.  Each such telephonic and written
Competitive Bid Request shall specify the following information in compliance
with Section 2.02:

  

(i) the aggregate amount of the requested Borrowing;

(ii) the date of such Borrowing, which shall be a Business Day;

(iii) whether such Borrowing is to be a Eurodollar Borrowing or a Fixed
Rate Borrowing;

(iv) the Interest Period to be applicable to such Borrowing, which shall be
a period contemplated by the definition of the term "Interest Period"; and

(v) the location and number of the Borrower's account to which funds are to
be disbursed, which shall comply with the requirements of Section 2.07.

  

Promptly following receipt of a Competitive Bid
Request in accordance with this Section, the Paying Agent shall notify the
Lenders of the details thereof by telecopy, inviting the Lenders to submit
Competitive Bids.

(b)  Each Lender may (but shall not have any
obligation to) make one or more irrevocable Competitive Bids to the Borrower in
response to a Competitive Bid Request.  Each Competitive Bid by a Lender must
be in a form approved by the Paying Agent and must be received by the Paying
Agent by telecopy, in the case of a Eurodollar Competitive Borrowing, not later
than 9:30 a.m., New York City time, three Business Days before the
proposed date of such Competitive Borrowing, and in the case of a Fixed Rate
Borrowing, not later than 9:30 a.m., New York City time, on the
proposed date of such Competitive Borrowing.  Competitive Bids that do not
conform substantially to the form approved by the Paying Agent may be rejected
by the Paying Agent, and the Paying Agent shall notify the applicable Lender as
promptly as practicable.  Each Competitive Bid shall specify (i) the
principal amount (which shall be a minimum of $5,000,000 and an integral
multiple of $1,000,000 and which may equal the entire principal amount of the
Competitive Borrowing requested by the Borrower) of the Competitive Loan or
Loans that the Lender is willing to make, (ii) the Competitive Bid Rate or
Rates at which the Lender is prepared to make such Loan or Loans (expressed as
a percentage rate per annum in the form of a decimal to no more than four
decimal places) and (iii) the Interest Period applicable to each such Loan
and the last day thereof.

(c)  The Paying Agent shall notify the Borrower by
telecopy of the Competitive Bid Rate and the principal amount specified in each
Competitive Bid and the identity of the Lender that shall have made such
Competitive Bid, in the case of a Eurodollar Competitive Borrowing, not later
than 10:00 a.m., New York City time, three Business Days before the proposed
date of such Competitive Borrowing, and in the case of a Fixed Rate Borrowing,
not later than 10:00 a.m., New York City time, on the proposed date of such
Competitive Borrowing.

(d)  Subject only to the provisions of this
paragraph, the Borrower may accept or reject any Competitive Bid.  The Borrower
shall notify the Paying Agent by telephone, confirmed by telecopy in a form
approved by the Paying Agent, whether and to what extent it has decided to
accept or reject each Competitive Bid, in the case of a Eurodollar Competitive
Borrowing, not later than 1:00 p.m., New York City time, three
Business Days before the date of the proposed Competitive Borrowing, and in the
case of a Fixed Rate Borrowing, not later than 10:30 a.m., New York
City time, on the proposed date of the Competitive Borrowing; provided
that (i) the failure of the Borrower to give such notice shall be deemed
to be a rejection of each Competitive Bid, (ii) the Borrower shall not
accept a Competitive Bid made at a particular Competitive Bid Rate if the
Borrower rejects a Competitive Bid made at a lower Competitive Bid Rate,
(iii) the aggregate amount of the Competitive Bids accepted by the
Borrower shall not exceed the aggregate amount of the requested Competitive
Borrowing specified in the related Competitive Bid Request, (iv) to the
extent necessary to comply with clause (iii) above, the Borrower may
accept Competitive Bids at the same Competitive Bid Rate in part, which
acceptance, in the case of multiple Competitive Bids at such Competitive Bid
Rate, shall be made pro rata in accordance with the amount of each such
Competitive Bid, and (v) except pursuant to clause (iv) above, no
Competitive Bid shall be accepted for a Competitive Loan unless such
Competitive Loan is in a minimum principal amount of $5,000,000 and an integral
multiple of $1,000,000; provided further that if a Competitive Loan must
be in an amount less than $5,000,000 because of the provisions of
clause (iv) above, such Competitive Loan may be for a minimum of
$1,000,000 or any integral multiple thereof, and in calculating the pro rata
allocation of acceptances of portions of multiple Competitive Bids at a
particular Competitive Bid Rate pursuant to clause (iv) the amounts shall
be rounded to integral multiples of $1,000,000 in a manner determined by the
Borrower.  A notice given by the Borrower pursuant to this paragraph shall be
irrevocable.

(e)  The Paying Agent shall promptly notify each
bidding Lender by telecopy whether or not its Competitive Bid has been accepted
(and, if so, the amount and Competitive Bid Rate so accepted), and each
successful bidder will thereupon become bound, subject to the terms and
conditions hereof, to make the Competitive Loan in respect of which its
Competitive Bid has been accepted.

(f)  If the Paying Agent shall elect to submit a
Competitive Bid in its capacity as a Lender, it shall submit such Competitive
Bid directly to the Borrower at least one quarter of an hour earlier than the
time by which the other Lenders are required to submit their Competitive Bids
to the Paying Agent pursuant to paragraph (b) of this Section.

     SECTION 2.05.  Swingline
Loans.  (a)  Subject to the terms and conditions set forth herein, each
Swingline Lender agrees to make Swingline Loans to the Borrower from time to
time during the Availability Period, in an aggregate principal amount at any
time outstanding that will not result in (i) the aggregate principal
amount of outstanding Swingline Loans exceeding $100,000,000 or (ii) the
sum of the total Revolving Credit Exposures plus the aggregate principal amount
of outstanding Competitive Loans exceeding the Total Commitments; provided
that a Swingline Lender shall not be required to make a Swingline Loan to
refinance an outstanding Swingline Loan.  Within the foregoing limits and
subject to the terms and conditions set forth herein, the Borrower may borrow,
prepay and reborrow Swingline Loans.

(b)  To request a Swingline Loan, the Borrower
shall notify the Paying Agent of such request by telephone (confirmed by
telecopy), not later than 12:00 noon, New York City time, on the day
of a proposed Swingline Loan.  Each such notice shall be irrevocable and shall
specify the requested date (which shall be a Business Day), the amount of the
requested Swingline Loan and the Swingline Lender from which such Swingline
Loan is requested.  The Paying Agent will promptly advise the applicable
Swingline Lender of any such notice received from the Borrower.  Such Swingline
Lender shall make each Swingline Loan available to the Borrower by means of a
credit to the general deposit account of the Borrower with such Swingline
Lender (or, in the case of a Swingline Loan made to finance the reimbursement
of an LC Disbursement as provided in Section 2.06(e), by remittance to the
applicable Issuing Bank) as promptly as practicable, but no later than
3:00 p.m., New York City time, on the requested date of such
Swingline Loan.

(c)  A Swingline Lender may by written notice given
to the Paying Agent not later than 10:00 a.m., New York City time, on
any Business Day require the Lenders to acquire participations on such Business
Day in all or a portion of its Swingline Loans outstanding.  Such notice shall
specify the aggregate amount of Swingline Loans in which Lenders will
participate.  Promptly upon receipt of such notice, the Paying Agent will give
notice thereof to each Lender, specifying in such notice such Lender's
Applicable Percentage of such Swingline Loan or Loans.  Each Lender hereby
absolutely and unconditionally agrees, upon receipt of notice as provided
above, to pay to the Paying Agent, for the account of the applicable Swingline
Lender, such Lender's Applicable Percentage of such Swingline Loan or Loans. 
Each Lender acknowledges and agrees that its obligation to acquire
participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.  Each
Lender shall comply with its obligation under this paragraph by wire transfer
of immediately available funds, in the same manner as provided in
Section 2.07 with respect to Loans made by such Lender (and
Section 2.07 shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Paying Agent shall promptly pay to the
applicable Swingline Lender the amounts so received by it from the Lenders. 
The Paying Agent shall notify the Borrower of any participations in any
Swingline Loan acquired pursuant to this paragraph, and thereafter payments in
respect of such Swingline Loan shall be made to the Paying Agent and not to the
applicable Swingline Lender.  Any amounts received by a Swingline Lender from
the Borrower (or other party on behalf of the Borrower) in respect of a
Swingline Loan after receipt by such Swingline Lender of the proceeds of a sale
of participations therein shall be promptly remitted to the Paying Agent; any
such amounts received by the Paying Agent shall be promptly remitted by the
Paying Agent to the Lenders that shall have made their payments pursuant to
this paragraph and to such Swingline Lender, as their interests may appear; provided
that any such payment so remitted shall be repaid to the applicable Swingline
Lender or to the Paying Agent, as applicable, if and to the extent such payment
is required to be refunded to the Borrower for any reason.  The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
the Borrower of any default in the payment thereof.

(d)  Any Lender may at any time become a Swingline
Lender hereunder by written agreement between the Borrower and such Lender,
subject to notice to, and the consent of, the Paying Agent, which consent shall
not unreasonably be withheld.  From and after the effective date of any such
Lender becoming a Swingline Lender, such Lender shall have the rights and
obligations of a Swingline Lender under this Agreement.

     SECTION 2.06.  Letters
of Credit.  (a)  General.  Subject to the terms and conditions
set forth herein, the Borrower may request the issuance of Letters of Credit
for its own account, in a form reasonably acceptable to the Paying Agent and
the applicable Issuing Bank, at any time and from time to time during the
Availability Period.  In the event of any inconsistency between the terms and
conditions of this Agreement and the terms and conditions of any form of letter
of credit application or other agreement submitted by the Borrower to, or
entered into by the Borrower with, any Issuing Bank relating to any Letter of
Credit, the terms and conditions of this Agreement shall control.  On the
Effective Date, each Existing Letter of Credit shall be deemed to be a Letter
of Credit for all purposes hereof and shall be deemed to have been issued
hereunder on the Effective Date.  All Letters of Credit shall provide for
drawings thereunder to be denominated in dollars except as provided for
Alternate Currency Letters of Credit pursuant to Section 2.06(m).

(b)  Notice of Issuance, Amendment, Renewal,
Extension; Certain Conditions.  To request the issuance of a Letter of
Credit (or the amendment, renewal or extension of an outstanding Letter of
Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by the relevant
Issuing Bank) to the relevant Issuing Bank (reasonably in advance of the
requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on
which such Letter of Credit is to expire (which shall comply with
paragraph (c) of this Section), the amount of such Letter of Credit, the
name and address of the beneficiary thereof and such other information as shall
be necessary to prepare, amend, renew or extend such Letter of Credit, and such
Issuing Bank shall promptly deliver a copy of such notice by telecopy to the
Paying Agent.  If requested by the applicable Issuing Bank, the Borrower also
shall submit a letter of credit application on such Issuing Bank's standard
form in connection with any request for a Letter of Credit.  A Letter of Credit
shall be issued, amended, renewed or extended only if (and upon issuance,
amendment, renewal or extension of each Letter of Credit the Borrower shall be
deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension (i) the LC Exposure shall not exceed $1,000,000,000,
(ii) the portion of the LC Exposure attributable to Alternate Currency Letters
of Credit shall not exceed $100,000,000 and (iii) the sum of the total
Revolving Credit Exposures plus the aggregate principal amount of outstanding
Competitive Loans shall not exceed the Total Commitments.

(c)  Expiration Date.  Each Letter of Credit
shall expire at or prior to the close of business on the earlier of
(i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after
such renewal or extension) and (ii) the date that is five Business Days
prior to the Maturity Date.

(d)  Participations.  By the issuance of a
Letter of Credit (or an amendment to a Letter of Credit increasing the amount
thereof) and without any further action on the part of the applicable Issuing
Bank or the Lenders, the Issuing Bank in respect of such Letter of Credit
hereby grants to each Lender, and each Lender hereby acquires from such Issuing
Bank, a participation in such Letter of Credit equal to such Lender's
Applicable Percentage of the aggregate amount available to be drawn under such
Letter of Credit.  In consideration and in furtherance of the foregoing, each
Lender hereby absolutely and unconditionally agrees to pay to the Paying Agent,
for the account of the applicable Issuing Bank, such Lender's Applicable
Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed
by the Borrower on the date due as provided in paragraph (e) of this Section,
or of any reimbursement payment required to be refunded to the Borrower for any
reason (subject to Section 2.06(m), in the case of Alternate Currency Letters
of Credit).  Each Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.  On the
Effective Date and without any further action by any party hereto, each Issuing
Bank that has issued an Existing Letter of Credit shall be deemed to have
granted to each Lender, and each Lender shall be deemed to have acquired from
such Issuing Bank, a participation in each such Existing Letter of Credit in
accordance with the foregoing provisions of this paragraph (d).

(e)  Reimbursement.  If an Issuing Bank
shall make any LC Disbursement in respect of a Letter of Credit, the Borrower
shall reimburse such LC Disbursement by paying to the Paying Agent an amount
equal to such LC Disbursement not later than 12:00 noon, New York
City time, on the date that such LC Disbursement is made, if the Borrower shall
have received notice of such LC Disbursement prior to 10:00 a.m.,
New York City time, on such date, or, if such notice has not been received
by the Borrower prior to such time on such date, then not later than
12:00 noon, New York City time, on (i) the Business Day that the
Borrower receives such notice, if such notice is received prior to
10:00 a.m., New York City time, on the day of receipt, or (ii) the
Business Day immediately following the day that the Borrower receives such
notice, if such notice is not received prior to such time on the day of
receipt; provided that in the case of a LC Disbursement in respect of an
Alternate Currency Letter of Credit, the times of day referred to above in this
clause (e) shall be deemed to be the local time at the place of payment; provided
further that, if such LC Disbursement is denominated in dollars, the
Borrower may, subject to the conditions to borrowing set forth herein, request
in accordance with Section 2.03 or 2.05 that such payment be financed with
an ABR Revolving Borrowing or Swingline Loan in an equivalent amount and, to
the extent so financed, the Borrower's obligation to make such payment shall be
discharged and replaced by the resulting ABR Revolving Borrowing or Swingline
Loan.  If the Borrower fails to make such payment when due, the Paying Agent
shall notify each Lender of the applicable LC Disbursement, the payment then
due from the Borrower in respect thereof and such Lender's Applicable
Percentage thereof.  Promptly following receipt of such notice (but subject to
Section 2.06(m), in the case of Alternate Currency Letters of Credit), each
Lender shall pay to the Paying Agent its Applicable Percentage of the payment
then due from the Borrower, in the same manner as provided in Section 2.07
with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the Paying
Agent shall promptly pay to the applicable Issuing Bank the amounts so received
by it from the Lenders.  Promptly following receipt by the Paying Agent of any
payment from the Borrower pursuant to this paragraph, the Paying Agent shall
distribute such payment to the applicable Issuing Bank or, to the extent that
Lenders have made payments pursuant to this paragraph to reimburse such Issuing
Bank, then to such Lenders and such Issuing Bank as their interests may
appear.  Any payment made by a Lender pursuant to this paragraph to reimburse
an Issuing Bank for any LC Disbursement (other than the funding of ABR
Revolving Loans or a Swingline Loan as contemplated above) shall not constitute
a Loan and shall not relieve the Borrower of its obligation to reimburse such
LC Disbursement.

(f)  Obligations Absolute.  The Borrower's
obligation to reimburse LC Disbursements as provided in paragraph (e) of
this Section shall be absolute, unconditional and irrevocable, and shall be
performed strictly in accordance with the terms of this Agreement under any and
all circumstances whatsoever and irrespective of (i) any lack of validity
or enforceability of any Letter of Credit or this Agreement, or any term or
provision therein, (ii) any draft or other document presented under a Letter
of Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect, (iii) payment
by an Issuing Bank under a Letter of Credit against presentation of a draft or
other document that does not comply with the terms of such Letter of Credit, or
(iv) any other event or circumstance whatsoever, whether or not similar to
any of the foregoing, that might, but for the provisions of this Section,
constitute a legal or equitable discharge of, or provide a right of setoff
against, the Borrower's obligations hereunder.  Neither the Paying Agent, the
Lenders nor any Issuing Bank, nor any of their Related Parties, shall have any
liability or responsibility by reason of or in connection with the issuance or
transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of any Issuing Bank; provided
that the foregoing shall not be construed to excuse an Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by such Issuing Bank's failure to exercise care when
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof.  Unless otherwise separately agreed in
writing between the Borrower and the applicable Issuing Bank, (A) the parties
hereto expressly agree that, in the absence of gross negligence or wilful
misconduct on the part of such Issuing Bank (as finally determined by a court
of competent jurisdiction), such Issuing Bank shall be deemed to have exercised
care in each such determination, and (B) in furtherance of the foregoing and
without limiting the generality thereof, the parties agree that, with respect
to documents presented which appear on their face to be in substantial
compliance with the terms of a Letter of Credit, such Issuing Bank may, in its
sole discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

(g)  Disbursement Procedures.  The
applicable Issuing Bank shall, promptly following its receipt thereof, examine
all documents purporting to represent a demand for payment under a Letter of
Credit.  Such Issuing Bank shall promptly notify the Paying Agent and the
Borrower by telephone (confirmed by telecopy) of such demand for payment and
whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided
that any failure to give or delay in giving such notice shall not relieve the
Borrower of its obligation to reimburse such Issuing Bank and the Lenders with
respect to any such LC Disbursement.

(h)  Interim Interest.  If an Issuing Bank
shall make any LC Disbursement, then, unless the Borrower shall reimburse such
LC Disbursement in full on the date such LC Disbursement is made, the unpaid
amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrower
reimburses such LC Disbursement, at the rate per annum then applicable to ABR
Revolving Loans; provided that, if the Borrower fails to reimburse such
LC Disbursement when due pursuant to paragraph (e) of this Section, then
Section 2.13(d) shall apply.  Interest accrued pursuant to this paragraph
shall be for the account of the applicable Issuing Bank, except that interest
accrued on and after the date of payment by any Lender pursuant to
paragraph (e) of this Section to reimburse the applicable Issuing Bank
shall be for the account of such Lender to the extent of such payment.

(i)  Replacement of an Issuing Bank.  An
Issuing Bank may be replaced at any time by written agreement among the
Borrower, the Paying Agent, the replaced Issuing Bank and the successor Issuing
Bank.  An Issuing Bank's obligations to issue additional Letters of Credit
hereunder may be terminated at any time by written agreement among the
Borrower, the Paying Agent and such Issuing Bank; provided that after
giving effect thereto there is at least one remaining Issuing Bank obligated to
issue Letters of Credit.  The Paying Agent shall notify the Lenders of any such
replacement or termination of an Issuing Bank.  At the time any such
replacement or termination shall become effective, the Borrower shall pay all
unpaid fees accrued for the account of the replaced or terminated Issuing Bank
pursuant to Section 2.12(b).  From and after the effective date of any
such replacement, the successor Issuing Bank shall have all the rights and
obligations of the replaced Issuing Bank under this Agreement with respect to
Letters of Credit to be issued thereafter.  After the replacement or
termination of an Issuing Bank hereunder, the replaced or terminated Issuing
Bank shall remain a party hereto and shall continue to have all the rights and
obligations of an Issuing Bank under this Agreement with respect to Letters of
Credit issued by it prior to such replacement or termination, but shall not be
required to issue additional Letters of Credit.

(j)  Cash Collateralization.  If any Event
of Default shall occur and be continuing, on the Business Day that the Borrower
receives notice from the Paying Agent or the Required Lenders (or, if the
maturity of the Loans has been accelerated, Lenders with LC Exposure
representing greater than 50% of the total LC Exposure) demanding the deposit
of cash collateral pursuant to this paragraph, the Borrower shall deposit in an
account with the Paying Agent, in the name of the Paying Agent and for the
benefit of the Lenders, an amount in cash equal to the LC Exposure as of such
date plus any accrued and unpaid interest thereon; provided that the
obligation to deposit such cash collateral shall become effective immediately,
and such deposit shall become immediately due and payable, without demand or
other notice of any kind, upon the occurrence of any Event of Default with
respect to either Loan Party described in clause (h) or (i) of
Article VII.  Such deposit shall be held by the Paying Agent as collateral
for the payment and performance of the obligations of the Borrower under this
Agreement.  The Paying Agent shall have exclusive dominion and control, including
the exclusive right of withdrawal, over such account.  Other than any interest
earned on the investment of such deposits, which investments shall be made at
the option and sole discretion of the Paying Agent and at the Borrower's risk
and expense, such deposits shall not bear interest.  Interest or profits, if
any, on such investments shall accumulate in such account.  Moneys in such
account shall be applied by the Paying Agent to reimburse any Issuing Bank for
LC Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Lenders with LC Exposure
representing greater than 50% of the total LC Exposure), be applied to satisfy
other obligations of the Borrower under this Agreement.  If the Borrower is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after
all Events of Default have been cured or waived.  If the Borrower is required
to provide an amount of cash collateral hereunder pursuant to Section 2.11(b),
such amount (to the extent not applied as aforesaid) shall be returned to the
Borrower as and to the extent that, after giving effect to such return, the
Borrower would remain in compliance with Section 2.11(b) and no Default shall
have occurred and be continuing.

(k)  Additional Issuing Banks.  Any Lender
may at any time become an Issuing Bank hereunder by written agreement between
the Borrower and such Lender, subject to notice to the Paying Agent.  From and
after the effective date of any such Lender becoming an Issuing Bank, such
Lender shall have the rights and obligations of an Issuing Bank under this
Agreement.  Any Lender that becomes an Issuing Bank shall not cease to be an
Issuing Bank hereunder if it later ceases to be a Lender hereunder.

(l)  Certain Notices by Issuing Banks.  Each
Issuing Bank that is not the same Person as the Person serving as the Paying
Agent shall notify the Paying Agent of (i) the currency, amount (including
the Dollar Amount thereof in the case of Alternate Currency Letters of Credit)
and expiration date of each Letter of Credit issued by such Issuing Bank at or
prior to the time of issuance thereof (or in the case of an Existing Letter of
Credit, such notice shall be provided on the Effective Date), (ii) any
amendment or modification to, or LC Disbursement under, any such Letter of
Credit at or prior to the time of such amendment, modification or LC
Disbursement and (iii) any termination, surrender, cancellation or expiry
of any such Letter of Credit at or prior to the time of such termination,
surrender, cancellation or expiration.

(m) Alternate Currency Letters of Credit.  Subject to the terms and
conditions set forth herein, the other conditions applicable to the issuance of
Letters of Credit hereunder and the approval of the applicable Issuing Bank,
the Borrower may request the issuance of Alternate Currency Letters of Credit. 
Upon the issuance of any Alternate Currency Letter of Credit, and so long as
any Alternate Currency Letter of Credit remains outstanding, the following
provisions shall apply:

  

(i)  For purposes of determining the total LC
Exposure at any time and for purposes of calculating fees payable under
Sections 2.12(b) and (c), the amount of any Alternate Currency Letter of
Credit and of any LC Disbursements in respect thereof shall be deemed to be, as
of any date of determination, the Dollar Amount thereof at such date.  The
initial Dollar Amount of any Alternate Currency Letter of Credit shall be
determined by the applicable Issuing Bank on the date of issuance thereof and
adjusted from time to time thereafter, in each case, as provided below.  The
Dollar Amount of each Alternate Currency Letter of Credit outstanding shall be
adjusted by the applicable Issuing Bank on each Calculation Date as provided in
Section 2.21(a).  If an LC Disbursement is made by the Issuing Bank under
any Alternate Currency Letter of Credit, the Dollar Amount of such LC
Disbursement shall be determined by such Issuing Bank on the date that such LC
Disbursement is made.  The applicable Issuing Bank shall make each such
determination to be made by it by calculating the amount in dollars that would
be required in order for such Issuing Bank to purchase an amount of the
applicable Alternate Currency equal to the amount of the relevant Alternate
Currency Letter of Credit or unpaid LC Disbursement, as the case may be, on the
date of determination at the Spot Exchange Rate with respect to such Alternate
Currency on such date of determination.  Each applicable Issuing Bank shall
notify the Paying Agent and the Borrower promptly of each such Dollar Amount
determined by it, on the date that such determination is required to be made.

(ii) Subject to paragraph (iv) below, the
obligation of the Borrower to reimburse the applicable Issuing Bank for any LC
Disbursement under any Alternate Currency Letter of Credit, and to pay interest
thereon, shall be payable only in the Alternate Currency in which such LC
Disbursement is made, and shall not be discharged by paying an amount in
dollars or any other currency; provided that the applicable Issuing Bank
may agree, in its sole discretion, to accept reimbursement in another currency,
but any such agreement shall not affect the obligations of the Lenders or the
Borrower under paragraphs (iii) and (iv) below if such reimbursement is not
actually made to the applicable Issuing Bank when due.

(iii) The obligation of each Lender under
paragraphs (d) and (e) of this Section to pay its Applicable Percentage of any
unpaid LC Disbursement under any Alternate Currency Letter of Credit shall be
payable only in dollars and shall be in an amount equal to such Applicable
Percentage of the Dollar Amount of such unpaid drawing determined as provided
in paragraph (i) above.  Under no circumstances shall the provisions hereof
permitting the issuance of Letters of Credit in an Alternate Currency be
construed, by implication or otherwise, as imposing any obligation upon any
Lender to make any Loan or other payment under the Loan Documents, or to accept
any payment from the Borrower in respect of any unreimbursed LC Disbursement,
in any currency other than dollars, it being understood that the parties intend
all payments of Indebtedness created under the Loan Documents to be denominated
and payable only in dollars except as expressly provided in paragraph (ii)
above and in Section 2.18(a).

(iv) If and to the extent that any Lender pays its
Applicable Percentage of any unreimbursed LC Disbursement under any Alternate
Currency Letter of Credit, then, notwithstanding clause (ii) above, the
obligation of the Borrower to reimburse the portion of such unreimbursed LC
Disbursement funded by such Lender shall be converted to, and shall be payable
only in, dollars (in an amount equal to the dollar amount funded by such Lender
as provided above) and shall not be discharged by paying an amount in any other
currency.  Interest accrued on such unreimbursed LC Disbursement to and
excluding the date of such payment by such Lender shall be for the account of
the applicable Issuing Bank and be payable in the applicable Alternate
Currency, but interest thereafter shall accrue on the dollar amount owed to
such Lender and shall be payable in dollars.

  

     SECTION 2.07.  Funding
of Borrowings.  (a)  Each Lender shall make each Loan to be made by it
hereunder on the proposed date thereof by wire transfer of immediately
available funds by 12:00 noon, New York City time, to the account of
the Paying Agent most recently designated by it for such purpose by notice to
the Lenders; provided that Swingline Loans shall be made as provided in
Section 2.05.  The Paying Agent will make such Loans available to the
Borrower by promptly crediting the amounts so received, in like funds, to an
account of the Borrower maintained with the Paying Agent in New York City
and designated by the Borrower in the applicable Borrowing Request or
Competitive Bid Request; provided that ABR Revolving Loans made to
finance the reimbursement of an LC Disbursement as provided in
Section 2.06(e) shall be remitted by the Paying Agent to the applicable
Issuing Bank.

(b)  Unless the Paying Agent shall have received
notice from a Lender prior to the proposed date of any Borrowing that such
Lender will not make available to the Paying Agent such Lender's share of such Borrowing,
the Paying Agent may assume that such Lender has made such share available on
such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount.  In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Paying Agent, then the applicable Lender
and the Borrower severally agree to pay to the Paying Agent forthwith on demand
such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but
excluding the date of payment to the Paying Agent, at (i) in the case of
such Lender, the greater of the Federal Funds Effective Rate and a rate determined
by the Paying Agent in accordance with banking industry rules on interbank
compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans.  If such Lender pays such amount to the Paying Agent,
then such amount shall constitute such Lender's Loan included in such
Borrowing.

     SECTION 2.08.  Interest
Elections.  (a)  Each Revolving Borrowing initially shall be of the
Type specified in the applicable Borrowing Request and, in the case of a
Eurodollar Revolving Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request.  Thereafter, the Borrower may elect to
convert such Borrowing to a different Type or to continue such Borrowing and,
in the case of a Eurodollar Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section.  The Borrower may elect different
options with respect to different portions of the affected Borrowing, in which
case each such portion shall be allocated ratably among the Lenders holding the
Loans comprising such Borrowing, and the Loans comprising each such portion
shall be considered a separate Borrowing.  This Section shall not apply to
Competitive Borrowings or Swingline Borrowings, which may not be converted or
continued.

(b)  To make an election pursuant to this Section,
the Borrower shall notify the Paying Agent of such election by telephone by the
time that a Borrowing Request would be required under Section 2.03 if the
Borrower were requesting a Revolving Borrowing of the Type resulting from such
election to be made on the effective date of such election.  Each such
telephonic Interest Election Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Paying Agent of a
written Interest Election Request in a form approved by the Paying Agent and
signed by the Borrower.

(c)  Each telephonic and
written Interest Election Request shall specify the following information in
compliance with Section 2.02:

  

(i) the Borrowing to which such Interest Election Request applies and, if
different options are being elected with respect to different portions thereof,
the portions thereof to be allocated to each resulting Borrowing (in which case
the information to be specified pursuant to clauses (iii) and (iv) below
shall be specified for each resulting Borrowing);

(ii) the effective date of the election made pursuant to such Interest
Election Request, which shall be a Business Day;

(iii) whether the resulting Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest
Period to be applicable thereto after giving effect to such election, which
shall be a period contemplated by the definition of the term "Interest Period".

  

If any such Interest Election Request requests a
Eurodollar Borrowing but does not specify an Interest Period, then the Borrower
shall be deemed to have selected an Interest Period of one month's duration.

(d)  Promptly following receipt of an Interest
Election Request, the Paying Agent shall advise each Lender of the details thereof
and of such Lender's portion of each resulting Borrowing.

(e)  If the Borrower fails to deliver a timely
Interest Election Request with respect to a Eurodollar Revolving Borrowing
prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to an ABR Borrowing.  Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the
Paying Agent, at the request of the Required Lenders, so notifies the Borrower,
then, so long as an Event of Default is continuing (i) no outstanding
Revolving Borrowing may be converted to or continued as a Eurodollar Borrowing
and (ii) unless repaid, each Eurodollar Revolving Borrowing shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

  SECTION 2.09.  Termination
and Reduction of Commitments. 

 

(a)  Unless previously terminated, the Commitments shall terminate on the
Maturity Date.

(b)  The Borrower may at any time terminate, or
from time to time reduce, the Commitments; provided that (i) each
reduction of the Commitments shall be in an amount that is an integral multiple
of $10,000,000 and not less than $25,000,000 and (ii) the Borrower shall
not terminate or reduce the Commitments if, after giving effect to any
concurrent prepayment of the Loans in accordance with Section 2.11, the
sum of the Revolving Credit Exposures plus the aggregate principal amount of
outstanding Competitive Loans would exceed the Total Commitments.

(c)  The Borrower shall notify the Paying Agent of
any election to terminate or reduce the Commitments under paragraph (b) of
this Section at least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date
thereof.  Promptly following receipt of any notice, the Paying Agent shall
advise the Lenders of the contents thereof.  Each notice delivered by the
Borrower pursuant to this Section shall be irrevocable; provided that a
notice of termination of the Commitments delivered by the Borrower may state
that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrower (by notice
to the Paying Agent on or prior to the specified effective date) if such
condition is not satisfied.  Any termination or reduction of the Commitments
shall be permanent.  Each reduction of the Commitments shall be made ratably
among the Lenders in accordance with their respective Commitments.

     SECTION 2.10.  Repayment of
Loans; Evidence of Debt.  (a)  The Borrower hereby unconditionally
promises to pay (i) to the Paying Agent for the account of each Lender the
then unpaid principal amount of each Revolving Loan on the Maturity Date,
(ii) to the Paying Agent for the account of each Lender the then unpaid
principal amount of each Competitive Loan on the last day of the Interest
Period applicable to such Loan and (iii) to the applicable Swingline
Lender the then unpaid principal amount of each Swingline Loan on the earlier
of the Maturity Date and the first date after such Swingline Loan is made that
is the 15th or last day of a calendar month and is at least four Business Days
after such Swingline Loan is made; provided that on each date that a
Revolving Borrowing or Competitive Borrowing is made, the Borrower shall repay
all Swingline Loans then outstanding.

(b)  Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the
Borrower to such Lender resulting from each Loan made by such Lender, including
the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

(c)  The Paying Agent shall maintain accounts in
which it shall record (i) the amount of each Loan made hereunder, the
Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become
due and payable from the Borrower to each Lender hereunder and (iii) the
amount of any sum received by the Paying Agent hereunder for the account of the
Lenders and each Lender's share thereof.

(d)  The entries made in the accounts maintained
pursuant to paragraph (b) or (c) of this Section shall be prima facie
evidence of the existence and amounts of the obligations recorded therein; provided
that the failure of any Lender or the Paying Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans in accordance with the terms of this Agreement.

(e)  Any Lender may request that Loans made by it
be evidenced by a promissory note.  In such event, the Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to the order of
such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Paying Agent.  Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be represented by
one or more promissory notes in such form payable to the order of the payee
named therein (or, if such promissory note is a registered note, to such payee
and its registered assigns).

     SECTION 2.11.  Prepayment
of Loans.  (a)  The Borrower shall have the right at any time and from
time to time to prepay any Borrowing in whole or in part, subject to prior
notice in accordance with paragraph (c) of this Section; provided
that the Borrower shall not have the right to prepay any Competitive Loan
without the prior consent of the Lender thereof.

(b)  In the event that, on any Reset Date, the sum
of the total Revolving Credit Exposures and the aggregate principal amount of
outstanding Competitive Loans exceeds 105% of the Total Commitments, then,
within three Business Days after notice thereof to the Borrower from the Paying
Agent, the Borrower shall prepay Revolving Borrowings (or, if no such
Borrowings are outstanding, deposit cash collateral in an account with the
Paying Agent pursuant to Section 2.06(j)) such that, after giving effect
thereto, the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans does not exceed the Total
Commitments.  Solely for purposes of determining compliance with this
paragraph, the total Revolving Credit Exposure shall be deemed reduced by the
amount of cash collateral deposited with and held by the Paying Agent pursuant
to Section 2.05(j).

(c)  The Borrower shall notify the Paying Agent
(and, in the case of prepayment of a Swingline Loan, the applicable Swingline
Lender) by telephone (confirmed by telecopy) of any prepayment hereunder
(i) in the case of prepayment of a Eurodollar Revolving Borrowing, not
later than 11:00 a.m., New York City time, three Business Days before
the date of prepayment, (ii) in the case of prepayment of an ABR Revolving
Borrowing, not later than 11:00 a.m., New York City time, one
Business Day before the date of prepayment or (iii) in the case of
prepayment of a Swingline Loan, not later than 12:00 noon, New York
City time, on the date of prepayment.  Each such notice shall be irrevocable
and shall specify the prepayment date and the principal amount of each
Borrowing or portion thereof to be prepaid; provided that, if a notice
of prepayment is given in connection with a conditional notice of termination
of the Commitments as contemplated by Section 2.09, then such notice of
prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.09.  Promptly following receipt of any such
notice relating to a Revolving Borrowing, the Paying Agent shall advise the
Lenders of the contents thereof.  Each partial prepayment of any Revolving
Borrowing shall be in an amount that would be permitted in the case of an
advance of a Revolving Borrowing of the same Type as provided in
Section 2.02.  Each prepayment of a Revolving Borrowing shall be applied
ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be
accompanied by accrued interest to the extent required by Section 2.13.

     SECTION 2.12.  Fees. 
(a)  The Borrower agrees to pay to the Paying Agent for the account of each
Lender a facility fee, which shall accrue at the Applicable Rate on the daily
amount of the Commitment of such Lender (whether used or unused) during the
period from and including Effective Date to but excluding the date on which
such Commitment terminates; provided that, if such Lender continues to
have any Revolving Credit Exposure after its Commitment terminates, then such
facility fee shall continue to accrue on the daily amount of such Lender's
Revolving Credit Exposure from and including the date on which its Commitment
terminates to but excluding the date on which such Lender ceases to have any
Revolving Credit Exposure.  Accrued facility fees shall be payable in arrears
on the last day of March, June, September and December of each year and on the
date on which the Commitments terminate, commencing on the first such date to
occur after the date hereof; provided that any facility fees accruing
after the date on which the Commitments terminate shall be payable on demand. 
All facility fees shall be computed on the basis of a year of 360 days and
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day).

(b)  The Borrower agrees to pay (i) to the
Paying Agent for the account of each Lender a participation fee with respect to
its participations in Letters of Credit, which shall accrue at the same
Applicable Rate used to determine the interest rate applicable to Eurodollar
Revolving Loans (or in the case of a Trade Letter of Credit, 50% of such
Applicable Rate) on the average daily amount of such Lender's LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Effective Date to but excluding the
later of the date on which such Lender's Commitment terminates and the date on
which such Lender ceases to have any LC Exposure, and (ii) to each Issuing
Bank a fronting fee separately agreed upon between the Borrower and such
Issuing Bank.  Participation fees accrued through and including the last day of
March, June, September and December of each year shall be payable on the fifth
Business Day following such last day, commencing on the first such date to
occur after the Effective Date; provided that all such fees shall be
payable on the date on which the Commitments terminate and any such fees
accruing after the date on which the Commitments terminate shall be payable on
demand.  Any other fees payable to an Issuing Bank pursuant to this paragraph
shall be payable within 10 days after demand.  All participation fees
shall be computed on the basis of a year of 360 days and shall be payable
for the actual number of days elapsed (including the first day but excluding
the last day).

(c)  The Borrower agrees to pay to the Paying Agent
for the account of each Lender a utilization fee which shall accrue at the rate
of 0.10% per annum on the amount of such Lender's Revolving Credit Exposure for
each day on which the sum of the aggregate Revolving Credit Exposure of all of
the Lenders plus the aggregate principal amount of all outstanding Competitive
Loans exceeds 50% of the aggregate amount of the Commitments (and on each day
after the termination of the Commitments on which Loans or Letters of Credit
are outstanding).  Accrued utilization fees, if any, shall be payable in
arrears on the last day of each March, June, September and December of each
year, on the date on the date on which the Commitments terminate and, if later,
on the date the Loans shall be repaid in their entirety, commencing on the
first such date to occur after the date hereof.  All utilization fees shall be
computed on the basis of a year of 360 days and shall be payable for the
actual number of days elapsed (including the first day but excluding the last
day).

(d)  The Borrower agrees to pay to the Paying
Agent, for its own account or for the account of the Lenders, as applicable,
fees payable in the amounts and at the times separately agreed upon between the
Borrower and the Paying Agent.

(e)  All fees payable hereunder shall be paid on
the dates due, in immediately available funds, to the Paying Agent (or to the
applicable Issuing Bank, in the case of fees payable to it) for distribution,
in the case of facility fees, utilization fees, participation fees and other
fees separately agreed upon to be payable to the Lenders, to the Lenders.  Fees
paid shall not be refundable under any circumstances, except to the extent that
the Borrower demonstrates that any amounts paid represent overpayments.

     SECTION 2.13.  Interest. 
(a)  The Loans comprising each ABR Borrowing (including each Swingline
Loan) shall bear interest at the Alternate Base Rate.

(b)  The Loans comprising each Eurodollar Borrowing
shall bear interest (i) in the case of a Eurodollar Revolving Loan, at the
Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus
the Applicable Rate, or (ii) in the case of a Eurodollar Competitive Loan,
at the LIBO Rate for the Interest Period in effect for such Borrowing plus (or
minus, as applicable) the Margin applicable to such Loan.

(c)  Each Fixed Rate Loan shall bear interest at
the Fixed Rate applicable to such Loan.

(d)  Notwithstanding the foregoing, if any
principal of or interest on any Loan or any fee or other amount payable by the
Borrower hereunder is not paid when due, whether at stated maturity, upon
acceleration or otherwise, such overdue amount shall bear interest, after as
well as before judgment, at a rate per annum equal to (i) in the case of
overdue principal of any Loan, 2% plus the rate otherwise applicable to such
Loan as provided in the preceding paragraphs of this Section or (ii) in
the case of any other amount, 2% plus the rate applicable to ABR Loans as
provided in paragraph (a) of this Section.

(e)  Accrued interest on each Loan shall be payable
in arrears on each Interest Payment Date for such Loan and, in the case of
Revolving Loans, upon termination of the Commitments; provided that
(i) interest accrued pursuant to paragraph (d) of this Section shall
be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of
the Availability Period), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and
(iii) in the event of any conversion of any Eurodollar Revolving Loan
prior to the end of the current Interest Period therefor, accrued interest on
such Loan shall be payable on the effective date of such conversion.

(f)  All interest hereunder shall be computed on
the basis of a year of 360 days, except that interest computed by
reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate shall be computed on the basis of a year of
365 days (or 366 days in a leap year), and in each case shall be
payable for the actual number of days elapsed (including the first day but
excluding the last day).  The applicable Alternate Base Rate, Adjusted LIBO
Rate or LIBO Rate shall be determined by the Paying Agent, and such
determination shall be conclusive absent manifest error.

     SECTION
2.14.  Alternate Rate of Interest.  If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:

(a)  the Paying Agent determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for
ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
Interest Period; or

(b)  the Paying Agent is advised by the Required Lenders (or, in the case
of a Eurodollar Competitive Loan, the Lender that is required to make such
Loan) that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
Interest Period will not adequately and fairly reflect the cost to such Lenders
(or Lender) of making or maintaining their Loans (or its Loan) included in such
Borrowing for such Interest Period;

then the Paying Agent shall give notice thereof to
the Borrower and the Lenders by telephone or telecopy as promptly as
practicable thereafter and, until the Paying Agent notifies the Borrower and
the Lenders that the circumstances giving rise to such notice no longer exist,
(i) any Interest Election Request that requests the conversion of any
Revolving Borrowing to, or continuation of any Revolving Borrowing as, a
Eurodollar Borrowing shall be ineffective, (ii) if any Borrowing Request
requests a Eurodollar Revolving Borrowing, such Borrowing shall be made as an
ABR Borrowing and (iii) any request by the Borrower for a Eurodollar Competitive
Borrowing shall be ineffective; provided that (A) if the
circumstances giving rise to such notice do not affect all the Lenders, then
requests by the Borrower for Eurodollar Competitive Borrowings may be made to
Lenders that are not affected thereby and (B) if the circumstances giving
rise to such notice affect only one Type of Borrowings, then the other Type of
Borrowings shall be permitted.

     SECTION
2.15.  Increased Costs.  (a)  If any Change in Law shall:

  

(i) impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of, or
credit extended by, any Lender (except any such reserve requirement reflected
in the Adjusted LIBO Rate) or any Issuing Bank; or

(ii) impose on any Lender or Issuing Bank or the London interbank market
any other condition affecting this Agreement or Eurodollar Loans or Fixed Rate
Loans made by such Lender or any Letter of Credit or participation therein;

  

and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurodollar Loan
or Fixed Rate Loan (or of maintaining its obligation to make any such Loan) or
to increase the cost to such Lender or an Issuing Bank of participating in,
issuing or maintaining any Letter of Credit or to reduce the amount of any sum
received or receivable by such Lender or Issuing Bank hereunder (whether of
principal, interest or otherwise), then the Borrower will pay to such Lender or
Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or Issuing Bank, as the case may be, for such additional
costs incurred or reduction suffered.

(b)  If any Lender or Issuing Bank determines that
any Change in Law regarding capital requirements has or would have the effect of
reducing the rate of return on such Lender's or Issuing Bank's capital or on
the capital of such Lender's or Issuing Bank's holding company, if any, as a
consequence of this Agreement or the Loans made by, or participations in
Letters of Credit held by, such Lender, or the Letters of Credit issued by such
Issuing Bank, to a level below that which such Lender or Issuing Bank or such
Lender's or Issuing Bank's holding company could have achieved but for such
Change in Law (taking into consideration such Lender's or Issuing Bank's
policies and the policies of such Lender's or Issuing Bank's holding company
with respect to capital adequacy), then from time to time the Borrower will pay
to such Lender or Issuing Bank, as the case may be, such additional amount or
amounts as will compensate such Lender or Issuing Bank or such Lender's or
Issuing Bank's holding company for any such reduction suffered.

(c)  A certificate of a Lender or an Issuing Bank
setting forth the amount or amounts necessary to compensate such Lender or
Issuing Bank or its holding company, as the case may be, as specified in
paragraph (a) or (b) of this Section shall be delivered to the Borrower
and shall be conclusive absent manifest error.  The Borrower shall pay such
Lender or Issuing Bank, as the case may be, the amount shown as due on any such
certificate within 10 days after receipt thereof.

(d)  Failure or delay on the part of any Lender or
Issuing Bank to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender's or Issuing Bank's right to demand such
compensation; provided that the Borrower shall not be required to
compensate a Lender or an Issuing Bank pursuant to this Section for any
increased costs or reductions incurred more than 270 days prior to the
date that such Lender or Issuing Bank, as the case may be, notifies the
Borrower of the Change in Law giving rise to such increased costs or reductions
and of such Lender's or Issuing Bank's intention to claim compensation
therefor; provided further that, if the Change in Law giving rise
to such increased costs or reductions is retroactive, then the 270‐day
period referred to above shall be extended to include the period of retroactive
effect thereof.

(e)  Notwithstanding the foregoing provisions of
this Section, a Lender shall not be entitled to compensation pursuant to this
Section in respect of any Competitive Loan if the Change in Law that would
otherwise entitle it to such compensation shall have been publicly announced
prior to submission of the Competitive Bid pursuant to which such Loan was
made.

     SECTION 2.16.  Break
Funding Payments.  In the event of (a) the payment of any principal of
any Eurodollar Loan or Fixed Rate Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of Default),
(b) the conversion of any Eurodollar Loan other than on the last day of
the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Eurodollar Loan or Fixed Rate Loan on the date
specified in any notice delivered pursuant hereto (regardless of whether such
notice may be revoked under Section 2.11(b) and is revoked in accordance
therewith), (d) the failure to borrow any Competitive Loan after accepting
the Competitive Bid to make such Loan, or (e) the assignment of any
Eurodollar Loan or Fixed Rate Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.19, then, in any such event, the Borrower shall compensate each
Lender for the loss, cost and expense attributable to such event.  In the case
of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed
to include an amount determined by such Lender to be the excess, if any, of
(i) the amount of interest which would have accrued on the principal
amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that
would have been applicable to such Loan, for the period from the date of such
event to the last day of the then current Interest Period therefor (or, in the
case of a failure to borrow, convert or continue, for the period that would
have been the Interest Period for such Loan), over (ii) the amount of
interest which would accrue on such principal amount for such period at the
interest rate which such Lender would bid were it to bid, at the commencement
of such period, for dollar deposits of a comparable amount and period from
other banks in the eurodollar market.  A certificate of any Lender setting
forth any amount or amounts that such Lender is entitled to receive pursuant to
this Section shall be delivered to the Borrower and shall be conclusive absent
manifest error.  The Borrower shall pay such Lender the amount shown as due on
any such certificate within 30 days after receipt thereof.

     SECTION 2.17.  Taxes. 
(a)  Any and all payments by or on account of any obligation of the
Borrower hereunder shall be made free and clear of and without deduction for
any Indemnified Taxes or Other Taxes; provided that if the Borrower
shall be required to deduct any Indemnified Taxes or Other Taxes from such
payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Paying Agent, Lender or Issuing
Bank (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (ii) the Borrower shall make
such deductions and (iii) the Borrower shall pay the full amount deducted
to the relevant Governmental Authority in accordance with applicable law.

(b)  In addition, the Borrower shall pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

(c)  The Borrower shall indemnify the Paying Agent,
each Lender and each Issuing Bank, within 30 days after written demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by
the Paying Agent, such Lender or such Issuing Bank, as the case may be, on or
with respect to any payment by or on account of any obligation of the Borrower
hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  A certificate as to the
amount of such payment or liability delivered to the Borrower by a Lender or an
Issuing Bank, or by the Paying Agent on its own behalf or on behalf of a Lender
or an Issuing Bank, shall be conclusive absent manifest error.

(d)  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority,
the Borrower shall deliver to the Paying Agent the original or a certified copy
of a receipt issued by such Governmental Authority evidencing such payment, a
copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Paying Agent.

(e)  Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall
deliver to the Borrower (with a copy to the Paying Agent), at the time or times
prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law or reasonably requested by the
Borrower as will permit such payments to be made without withholding or at a
reduced rate.

(f)  If the Paying Agent or a Lender determines, in
its sole discretion, that it has received a refund of any Taxes or Other Taxes
as to which it has been indemnified by the Borrower or with respect to which
the Borrower has paid additional amounts pursuant to this Section 2.17, it
shall pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section 2.17
with respect to the Taxes or Other Taxes giving rise to such refund), net of
all out-of-pocket expenses of the Paying Agent or such Lender and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund); provided, that the Borrower, upon the
request of the Paying Agent or such Lender, agrees to repay the amount paid
over to the Borrower (plus any penalties, interest or other charges imposed by
the relevant Governmental Authority) to the Paying Agent or such Lender in the
event the Paying Agent or such Lender is required to repay such refund to such
Governmental Authority.  This Section shall not be construed to require the
Paying Agent or any Lender to make available its tax returns (or any other information
relating to its taxes which it deems confidential) to the Borrower or any other
Person.

     SECTION 2.18.  Payments
Generally; Pro Rata Treatment; Sharing of Set‐offs.  (a)  The Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts
payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to
1:00 p.m., New York City time (or, in the case of an amount payable
in an Alternate Currency, 1:00 p.m. local time at the place of payment),
on the date when due, in immediately available funds, without set‐off or
counterclaim.  Any amounts received after such time on any date may, in the
discretion of the Paying Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon.  All such
payments shall be made to the Paying Agent at its offices at 270 Park
Avenue, New York, New York (or, in the case of payments in an
Alternate Currency, such other location as provided below), except payments to
be made directly to an Issuing Bank or a Swingline Lender as expressly provided
herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and
9.03 shall be made directly to the Persons entitled thereto.  The Paying Agent
shall distribute any such payments received by it for the account of any other
Person to the appropriate recipient promptly following receipt thereof.  If any
payment hereunder shall be due on a day that is not a Business Day, the date
for payment shall be extended to the next succeeding Business Day, and, in the
case of any payment accruing interest, interest thereon shall be payable for
the period of such extension.  All payments hereunder shall be made in dollars,
except as expressly provided herein with respect to Alternate Currency Letters
of Credit.  All payments to be made by the Borrower in an Alternate Currency
pursuant to Section 2.06(m) shall be made in such Alternate Currency in such
funds as may then be customary for the settlement of international transactions
in such Alternate Currency for the account of the applicable Issuing Bank at
such time and at such place as shall have been notified by such Issuing Bank to
the Borrower by not less than four Business Days' notice.

(b)  If at any time insufficient funds are received
by and available to the Paying Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds
shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second,
towards payment of principal and unreimbursed LC Disbursements then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal and unreimbursed LC Disbursements then due to such
parties.

(c)  If any Lender shall, by exercising any right
of set‐off or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Revolving Loans or participations in LC
Disbursements or Swingline Loans resulting in such Lender receiving payment of
a greater proportion of the aggregate amount of its Revolving Loans and
participations in LC Disbursements and Swingline Loans and accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the Revolving Loans and participations in LC Disbursements
and Swingline Loans of other Lenders to the extent necessary so that the
benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Revolving Loans and participations in LC Disbursements and
Swingline Loans; provided that (i) if any such participations are
purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in LC Disbursements to any assignee or participant, other than to the Borrower
or any Subsidiary or Affiliate thereof (as to which the provisions of this
paragraph shall apply).  The Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against the Borrower rights of set‐off and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation.

(d)  Unless the Paying Agent shall have received
notice from the Borrower prior to the date on which any payment is due to the
Paying Agent for the account of the Lenders or any Issuing Bank hereunder that
the Borrower will not make such payment, the Paying Agent may assume that the
Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or such Issuing Bank,
as the case may be, the amount due.  In such event, if the Borrower has not in
fact made such payment, then each of the Lenders or the applicable Issuing
Bank, as the case may be, severally agrees to repay to the Paying Agent
forthwith on demand the amount so distributed to such Lender or Issuing Bank
with interest thereon, for each day from and including the date such amount is distributed
to it to but excluding the date of payment to the Paying Agent, at the greater
of the Federal Funds Effective Rate and a rate determined by the Paying Agent
in accordance with banking industry rules on interbank compensation.

(e)  If any Lender shall fail to make any payment
required to be made by it pursuant to Section 2.05(c), 2.06(d) or (e),
2.07(b) or 2.18(d), then the Paying Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Paying Agent for the account of such Lender to satisfy such
Lender's obligations under such Sections until all such unsatisfied obligations
are fully paid.

     SECTION 2.19.  Mitigation
Obligations; Replacement of Lenders.  (a)  If any Lender requests
compensation under Section 2.15, or if the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.17, then such Lender shall use
reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 2.15 or 2.17, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender.  The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

(b)  If any Lender requests compensation under
Section 2.15, or if the Borrower is required to pay any additional amount
to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.17, or if any Lender is a Declining Lender, or if
any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and
the Paying Agent, require such Lender to assign and delegate, without recourse
(in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this
Agreement (other than any outstanding Competitive Loans held by it) to an
assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the
Borrower shall have received the prior written consent of the Paying Agent, which
consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans
(other than Competitive Loans) and participations in LC Disbursements and
Swingline Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all
other amounts), (iii) in the case of any such assignment resulting from a
claim for compensation under Section 2.15 or payments required to be made
pursuant to Section 2.17, such assignment will result in a reduction in
such compensation or payments and (iv) in the case of any such assignment resulting
from a Lender being a Declining Lender, the assignee shall have agreed to the
applicable Maturity Date Extension Request.  A Lender shall not be required to
make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

     SECTION 2.20.  Increase
in Commitments.  (a)    At any time after the Effective Date and no
more than two times during any calendar year, the Borrower may, by written
notice to the Paying Agent (which shall promptly deliver a copy to each of the
Lenders), request at any time or from time to time that the Total Commitments
be increased; provided that (i) the aggregate amount of each such
increase pursuant to this Section 2.20 shall not be less than $50,000,000 and
the aggregate amount of all such increases pursuant to this Section 2.20 shall
not exceed $500,000,000, (ii) each such request of the Borrower shall be deemed
to be an offer to each  Lender to increase its Commitment by its Applicable
Percentage of the proposed increased amount and (iii) each Lender, in its sole
discretion, may either (A) agree to increase its Commitment by all or a portion
of the offered amount or (B) decline to increase its Commitment.  Any such
notice shall set forth the amount of the requested increase in the Total
Commitments and the date on which such increase is requested to become
effective.  In the event that the Lenders shall have agreed to increase their
Commitments by an aggregate amount less than the increase in the Total
Commitments requested by the Borrower, the Borrower may arrange for one or more
banks or other financial institutions (any such bank or other financial
institution being called an "Augmenting Lender"), which may include any
Lender, to extend Commitments or increase its existing Commitment in an
aggregate amount equal to the unsubscribed amount; provided that each
Augmenting Lender, if not already a Lender hereunder, shall be subject to the
approval of the Paying Agent (not to be unreasonably withheld).  Increases of
Commitments and new Commitments created pursuant to this paragraph (a) shall
become effective upon the execution and delivery by Parent, the Borrower, the
Paying Agent and any Lenders (including any Augmenting Lenders) agreeing to
increase their existing Commitments or extend new Commitments, as the case may
be, of an agreement providing for such increased or additional Commitments,
subject to the satisfaction of any conditions set forth in such agreement. 
Notwithstanding the foregoing, no increase in the Total Commitments (or in the
Commitment of any Lender) shall become effective under this paragraph (a)
unless, on the date of such increase, the conditions set forth in paragraphs
(a) and (b) of Sections 4.02 shall be satisfied (as though a Borrowing were
being made on such date) and the Paying Agent shall have received a certificate
to that effect dated such date and executed by a Responsible Officer or a
Financial Officer of each Loan Party.

(b)  At the time that any increase in the Total
Commitments pursuant to paragraph (a) of this Section 2.20 (a "Commitment
Increase") becomes effective, if any Revolving Loans are outstanding, the
Borrower shall prepay the aggregate principal amount outstanding in respect of
such Revolving Loans in accordance with Section 2.11 (the "Initial Loans");
provided that (i) nothing in this Section 2.20 shall prevent the
Borrower from funding the prepayment of Initial Loans with concurrent Revolving
Loans hereunder in accordance with the provisions of this Agreement, giving
effect to the Commitment Increase, and (ii) no such prepayment shall be
required if, after giving effect to the Commitment Increase, each Lender has
the same Applicable Percentage as immediately prior to such Commitment
Increase.

     SECTION 2.21.  Currency
Fluctuations.  (a)  Not later than 1:00 p.m., New York City time, on
each Calculation Date, if there are any Alternate Currency Letters of Credit
outstanding, (i) each Issuing Bank that has outstanding any Alternate
Currency Letter of Credit or LC Disbursement thereunder shall determine the
Dollar Amount as of such Calculation Date of each outstanding Alternate
Currency Letter of Credit issued by it or LC Disbursement thereunder, and such
Issuing Bank shall notify the Paying Agent and the Borrower of each Dollar
Amount so determined and the relevant Spot Exchange Rate used by it to make
such determination and (ii) the Paying Agent shall give notice to the Lenders
and the Borrower of the Spot Exchange Rates so determined.  The Spot Exchange
Rates so determined shall become effective on the first Business Day
immediately following the relevant Calculation Date (a "Reset Date") and
(subject to Section 2.06(m)) shall remain effective until the next
succeeding Reset Date.

(b)  Not later than 5:00 p.m., New York City time,
on each Reset Date and the date of each Borrowing or issuance of a Letter of
Credit, if there are any Alternate Currency Letters of Credit then outstanding,
the Paying Agent shall (i) determine the Dollar Equivalent of the Alternate
Currency Letters of Credit then outstanding (after giving effect to any Loans
to be made or repaid on such date) and (ii) notify the Lenders and the Borrower
of the results of such determination and of the resulting total Revolving
Credit Exposures.

     SECTION 2.22.  Extension
of Maturity Date.  (a)   The Borrower may, by delivery of a written
request (a "Maturity Date Extension Request") to the Paying Agent (which
shall promptly deliver a copy to each of the Lenders) not less than
30 days and not more than 90 days prior to the first or second
anniversary of the Effective Date, request that the Lenders extend the Maturity
Date for an additional period of one year; provided that there shall be
no more than two extensions of the Maturity Date pursuant to this Section. 

(b)  Each Lender shall, by notice to the Borrower
and the Administrative Agent given not later than the 20th day after the
date of the Paying Agent's receipt of the Borrower's Maturity Date Extension
Request (or such other date as the Borrower and the Paying Agent may agree;
such date, the "Extension Date"), advise the Borrower whether or not it
agrees to the requested extension (each Lender agreeing to a requested
extension being called a "Consenting Lender", and each Lender declining
to agree to a requested extension being called a "Declining Lender"). 
Any Lender that has not so advised the Borrower and the Paying Agent by such
Extension Date shall be deemed to have declined to agree to such extension and
shall be a Declining Lender.  

(c)  If Lenders constituting the Required Lenders
shall have agreed to a Maturity Date Extension Request by the Extension Date,
then the Maturity Date shall, as to the Consenting Lenders, be extended to the
first anniversary of the Maturity Date theretofore in effect.  The decision to
agree or withhold agreement to any Maturity Date Extension Request shall be at
the sole discretion of each Lender.  The Commitment of any Declining Lender
shall terminate on the Maturity Date in effect prior to giving effect to any
such extension (such Maturity Date being called the "Existing Maturity Date"). 
The principal amount of any outstanding Loans made by Declining Lenders,
together with any accrued interest thereon and any accrued fees and other
amounts payable to or for the account of such Declining Lenders hereunder,
shall be due and payable on the Existing Maturity Date, and on the Existing
Maturity Date the Borrower shall also make such other prepayments of Loans
pursuant to Section 2.11 as shall be required in order that, after giving
effect to the termination of the Commitments of, and all payments to, Declining
Lenders pursuant to this sentence, the sum of the total Revolving Credit
Exposures plus the aggregate principal amount of outstanding Competitive Loans
would not exceed the Total Commitments.  

(d)  Notwithstanding the foregoing provisions of
this Section 2.22, the Borrower shall have the right, pursuant to
Section 2.19(b), at any time prior to the Existing Maturity Date, to
replace a Declining Lender with a Lender or other financial institution that
will agree to the applicable Maturity Date Extension Request, and any such
replacement Lender shall for all purposes constitute a Consenting Lender. 

(e)  Notwithstanding the foregoing provisions of
this Section 2.22, no extension of the Maturity Date pursuant to this Section
2.22 shall become effective unless, on or promptly following the Extension
Date, the conditions set forth in Section 4.02 shall be satisfied (with
all references in such Section to a Borrowing being deemed to be references to
such extension and without giving effect to the parenthetical in Section
4.02(a))  and the Paying Agent shall have received a certificate to that effect
dated the Extension Date and executed by a Responsible Officer or a Financial
Officer of each Loan Party.

ARTICLE
III

Representations and Warranties

     Each of Parent
and the Borrower represents and warrants to the Lenders that:

     SECTION 3.01.  Organization. 
Each of Parent and the Borrower is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation.

     SECTION 3.02.  Powers;
Authorization; No Conflicts; Enforceability.  The Transactions are within
each Loan Party's corporate powers, have been duly authorized by all necessary
corporate action, and do not contravene (a) either Loan Party's charter or
by‐laws or (b) law or any contractual restriction binding on or
affecting either Loan Party.  This Agreement has been, and each of the other
Loan Documents to which Parent or the Borrower is to be a party when delivered
hereunder will have been, duly executed and delivered by Parent or the
Borrower, as applicable.  This Agreement is, and each of the other Loan
Documents to which Parent or the Borrower is to be a party when delivered
hereunder will be, the legal, valid and binding obligation of Parent or the
Borrower, as applicable, enforceable against Parent or the Borrower, as
applicable, in accordance with its terms.

     SECTION 3.03.  Approvals. 
No authorization or approval or other action by, and no notice to or filing
with, any Governmental Authority or any other third party is required for the
due execution, delivery and performance by Parent and the Borrower of this
Agreement or any other Loan Document to which Parent or the Borrower is to be a
party, the borrowing of the Loans, the use of the proceeds thereof and the
issuance of Letters of Credit hereunder.

SECTION 3.04.  Financial
Condition; No Material Adverse Change. 

 

(a)  The consolidated balance sheet of Parent and its subsidiaries as at
February 3, 2007, and the related consolidated statements of income and cash
flows of Parent and its subsidiaries for the fiscal year then ended,
accompanied by an opinion of KPMG LLP, independent public accountants, and the
consolidated balance sheet of Parent and its subsidiaries as at May 5, 2007,
and the related consolidated statements of income and cash flows of Parent and
its subsidiaries for the three months then ended, duly certified by a Financial
Officer of Parent, copies of which have been furnished to the Lenders, fairly
present, subject, in the case of said balance sheet as at May 5, 2007, and said
statements of income and cash flows for the three months then ended, to
year-end audit adjustments, the consolidated financial condition of Parent and
its subsidiaries as at such dates and the consolidated results of the
operations of Parent and its subsidiaries for the periods ended on such dates,
all in accordance with GAAP consistently applied.

(b)  Since February 3, 2007, there has been no
material adverse change in the business, condition (financial or otherwise),
operations, performance, properties or prospects of Parent and its
subsidiaries, taken as a whole.

     SECTION 3.05.  Litigation. 
There is no pending or threatened action, suit, investigation, litigation or
proceeding affecting Parent or any Subsidiary pending or threatened before any
Governmental Authority or arbitrator that (a) would be reasonably likely
to have a Material Adverse Effect or (b) purports to affect the legality,
validity or enforceability of any Loan Document or the consummation of the
transactions contemplated hereby.

     SECTION 3.06.  Investment
Company Status.  Neither Loan Party is an "investment company", within the
meaning of the Investment Company Act of 1940.

     SECTION 3.07.  ERISA. 
(a)  No ERISA Event has occurred or is reasonably expected to occur with
respect to any Plan that has resulted in or is reasonably expected to have a
Material Adverse Effect.

(b)  Neither the Borrower nor any ERISA Affiliate
has incurred or is reasonably expected to incur any Withdrawal Liability to any
Multiemployer Plan that could be reasonably expected to have a Material Adverse
Effect.

(c)  Each Plan satisfies the funding requirements
under Section 302 of ERISA and there has been no change in the funding status
of any such Plan since the last annual actuarial valuation date that would
reasonably be expected to have a Material Adverse Effect. 

ARTICLE
IV

Conditions

     SECTION
4.01.  Effective Date.  The obligations of the Lenders to make Loans and
of the Issuing Banks to issue Letters of Credit hereunder shall not become
effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 9.02):

(a)  The Paying Agent (or its counsel) shall have received (i) from
each party hereto either (A) a counterpart of this Agreement signed on
behalf of such party or (B) written evidence satisfactory to the Paying
Agent (which may include telecopy transmission of a signed signature page of
this Agreement) that such party has signed a counterpart of this Agreement and
(ii) from Parent and the Borrower a counterpart of the Guarantee Agreement
signed on behalf of Parent and the Borrower.

(b)  The Paying Agent shall have received a favorable written opinion
(addressed to the Paying Agent and the Lenders and dated the Effective Date) of
(i) Jones Day, counsel to Parent and the Borrower, substantially in the form of
Exhibit B and (ii) Dennis J. Broderick, the General Counsel for
Parent, substantially in the form of Exhibit C, in each case covering such
other matters relating to Parent and the Borrower, the Loan Documents, the
Transactions or the other transactions contemplated hereby as the Required
Lenders shall reasonably request.  Parent and the Borrower hereby request such
counsel to deliver such opinion.

(c)  The Paying Agent shall have received such documents and certificates
as the Paying Agent or its counsel may reasonably request relating to the
organization, existence and good standing of Parent and the Borrower, the
authorization of the Transactions and any other legal matters relating to
Parent and the Borrower, the Loan Documents or the Transactions, all in form
and substance satisfactory to the Paying Agent and its counsel, including all
documentation and other information required by bank regulatory authorities
under applicable "know your customer" and anti-money laundering rules and
regulations, including the Patriot Act.

(d)  The representations of the Loan Parties set forth in this Agreement
shall be true and correct, no Default shall have occurred and be continuing and
the Paying Agent shall have received a certificate, dated the Effective Date
and signed by a Responsible Officer or a Financial Officer of each Loan Party,
confirming the foregoing.

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

(f)  Before or simultaneously with the Effective Date all Indebtedness
under the Existing Credit Agreement shall have been repaid, and all commitments
and obligations thereunder shall have been terminated and satisfied (other than
Existing Letters of Credit), and the Paying Agent shall have received
satisfactory evidence thereof.

The Paying Agent shall notify Parent, the Borrower
and the Lenders of the Effective Date, and such notice shall be conclusive and
binding.  Notwithstanding the foregoing, the obligations of the Lenders to make
Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not
become effective unless each of the foregoing conditions is satisfied (or
waived pursuant to Section 9.02) at or prior to 3:00 p.m.,
New York City time, on September 30, 2007 (and, in the event such
conditions are not so satisfied or waived, the Commitments shall terminate at such
time).

     SECTION
4.02.  Each Credit Event.  The obligation of each Lender to make a Loan
on the occasion of any Borrowing, and of an Issuing Bank to issue, amend, renew
or extend any Letter of Credit, is subject to the satisfaction of the following
conditions:

(a)  The representations and warranties of the Loan Parties set forth in
this Agreement (other than those in Section 3.04(b) and clause (a) of
Section 3.05) shall be true and correct on and as of the date of such
Borrowing or the date of issuance, amendment, renewal or extension of such
Letter of Credit, as applicable.

(b)  At the time of and immediately after giving effect to such Borrowing
or the issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Default shall have occurred and be continuing.

Each Borrowing and each issuance, amendment, renewal
or extension of a Letter of Credit shall be deemed to constitute a
representation and warranty by the Loan Parties on the date thereof as to the
matters specified in paragraphs (a) and (b) of this Section.

ARTICLE
V

Affirmative Covenants

     Until the Commitments have expired or been
terminated and the principal of and interest on each Loan and all fees payable
hereunder shall have been paid in full and all Letters of Credit shall have
expired or terminated and all LC Disbursements shall have been reimbursed, each
of Parent and the Borrower covenants and agrees with the Lenders that:

     SECTION 5.01.  Financial
Statements; Ratings Change and Other Information.  Parent or the Borrower
will furnish to the Paying Agent and each Lender:

(a)  as soon as available and in any event within 90 days after the
end of each fiscal year of Parent, a copy of the annual audit report for such
year for Parent and its consolidated subsidiaries, containing a consolidated
balance sheet of Parent and its consolidated subsidiaries as of the end of such
fiscal year and consolidated statements of income and cash flows of Parent and
its consolidated subsidiaries for such fiscal year, in each case accompanied by
an opinion by KPMG LLP or other independent public accountants of recognized
national standing (without a "going concern" or like qualification or exception
and without any qualification or exception as to the scope of such audit) and
certificates of a Financial Officer of Parent (i) as to compliance with the
terms of this Agreement, (ii) setting forth in reasonable detail the then
applicable Public Debt Ratings and the Interest Coverage Ratio and the Leverage
Ratio as of the end of such fiscal year and the calculations necessary to
demonstrate compliance with Sections 6.05 and 6.06 as of the end of such
fiscal year and (iii) stating whether any change in GAAP or in the application
thereof has occurred since the date of the last consolidated financial
statements of Parent and its consolidated subsidiaries referred to in Section
3.04(a) that materially affects the financial statements accompanying such
certificate and, if any such change has occurred, specifying the effect of such
change on the financial statements accompanying such certificate;

(b)  as soon as available and in any event within 45 days after the
end of each of the first three fiscal quarters of each fiscal year of Parent, a
consolidated balance sheet of Parent and its consolidated subsidiaries as of
the end of such quarter and consolidated statements of income and cash flows of
Parent and its consolidated subsidiaries for the period commencing at the end
of the previous fiscal year of Parent and ending with the end of such quarter,
duly certified (subject to year-end audit adjustments) by a Financial Officer
of Parent as having been prepared in accordance with GAAP, and certificates of
a Financial Officer of Parent  (i) as to compliance with the terms of this
Agreement, (ii) setting forth in reasonable detail the then applicable Public
Debt Ratings and the Interest Coverage Ratio and the Leverage Ratio as of the
end of such fiscal quarter and the calculations necessary to demonstrate
compliance with Sections 6.05 and 6.06 as of the end of such fiscal
quarter and (iii) stating whether any change in GAAP or in the application
thereof has occurred since the date of the last consolidated financial
statements of Parent and its consolidated subsidiaries referred to in Section
3.04(a) that materially affects the financial statements accompanying such
certificate and, if any such change has occurred, specifying the effect of such
change on the financial statements accompanying such certificate;

(c)  as soon as possible and in any event within five days after any
Responsible Officer becomes aware of the occurrence of a Default or an event,
development or circumstance that has had or could reasonably be expected to
have a Material Adverse Effect, in each case continuing on the date of such
statement, a statement of a Financial Officer of Parent or the Borrower setting
forth details of such Default, event, development or other circumstance
(including the anticipated effect thereof) and the action that Parent or the
Borrower has taken and proposes to take with respect thereto;

(d)  promptly after the sending thereof, copies of all reports that Parent
or the Borrower sends to any of the holders of any class of its outstanding
securities;

(e)  promptly after the commencement thereof, notice of all actions, suits,
investigations, litigation and proceedings before any Governmental Authority or
arbitrator affecting Parent or any Subsidiary of the type described in
Section 3.05;

(f)  as soon as possible and in any event within five Business Days after
any change in the then applicable Public Debt Rating, a certificate of a
Financial Officer of Parent setting forth such Public Debt Rating; and

(g)  such other information respecting the business, condition (financial
or otherwise), operations, performance, properties or prospects of Parent or
any Subsidiary as any Lender through either Administrative Agent may from time
to time reasonably request.

                        The
Borrower and Parent also agree that promptly after any report or registration
statement, other than a registration statement on Form S‐8 or any
successor form thereto, is filed by Parent or any Subsidiary with the
Securities and Exchange Commission or any national securities exchange a copy
thereof will be made available on Parent's website.

     SECTION 5.02.  Existence. 
Parent will, and will cause each of the Subsidiaries to, preserve and maintain,
its corporate existence, rights (charter and statutory), permits, licenses,
approvals, privileges and franchises, except, with respect to such rights,
permits, licenses, approvals, privileges and franchises, where the failure to
do so could not be reasonably expected to have a Material Adverse Effect; provided
that Parent and the Subsidiaries may consummate any merger or consolidation
permitted under Section 6.03 and, provided, further, that
neither Parent nor any Subsidiary shall be required to preserve or maintain
(i) the corporate existence of any Minor Subsidiary if the Board of
Directors of the parent of such Minor Subsidiary, or an executive officer of
such parent to whom such Board of Directors has delegated the requisite
authority, shall determine that the preservation and maintenance thereof is no
longer desirable in the conduct of the business of such parent and that the
loss thereof is not disadvantageous in any material respect to Parent, the
Borrower, such parent, the Paying Agent, the Issuing Banks or the Lenders or (ii) any
right, permit, license, approval, privilege or franchise if the Board of
Directors of Parent or such Subsidiary shall determine that the preservation
thereof is no longer desirable in the conduct of the business of Parent or such
Subsidiary, as the case may be, and that the loss thereof is not
disadvantageous in any material respect to Parent, such Subsidiary, the Paying
Agent, the Issuing Banks or the Lenders.

     SECTION 5.03.  Payment
of Obligations.  Parent will, and will cause each of the Subsidiaries to,
pay and discharge, before the same shall become delinquent, (a) all Taxes
imposed upon it or upon its property and (b) all lawful claims that, if
unpaid, might by law become a Lien upon its property; provided that
neither Parent nor any Subsidiary shall be required to pay or discharge any
such Tax or claim (i) that is being contested in good faith and by proper
proceedings and as to which appropriate reserves are being maintained, unless
and until any Lien resulting therefrom attaches to its property and becomes enforceable
against its other creditors and (ii) if such non-payments, either
individually or in the aggregate, could not be reasonably expected to have a
Material Adverse Effect.

     SECTION 5.04.  Maintenance
of Properties; Insurance.  (a)  Except where the failure to do so,
either individually or in the aggregate, could not be reasonably expected to
have a Material Adverse Effect, Parent will, and will cause each of the
Subsidiaries to, maintain and preserve all of its properties that are used or
useful in the conduct of its business in good working order and condition,
ordinary wear and tear excepted.

(b)  Parent will, and will cause each of the
Subsidiaries to, maintain insurance with responsible and reputable insurance
companies or associations in such amounts and covering such risks as is usually
carried by companies engaged in similar businesses and owning similar
properties in the same general areas in which Parent or such Subsidiary
operates, except where failure to maintain such insurance could not be
reasonably expected to have a Material Adverse Effect.

     SECTION 5.05.  Books and
Records; Inspection Rights.  (a)   Parent will, and will cause each of
the Subsidiaries to, keep proper books of record and account in such detail as
is necessary to allow the delivery of the reports required by Section 5.01, in
which full and correct entries shall be made of all financial transactions and
the assets and business of Parent and its consolidated subsidiaries in
accordance with GAAP.

(b)  Parent will, and will cause each of the Subsidiaries
to, at any reasonable time and from time to time, upon reasonable notice,
permit any Agent or any of the Lenders or any agents or representatives
thereof, to examine the records and books of account of, and visit the
properties of, Parent or any Subsidiary and to discuss the affairs, finances
and accounts of Parent or any Subsidiary with any of their financial officers.

     SECTION 5.06.  Compliance
with Laws.  Parent will, and will cause each of the Subsidiaries to comply,
in all material respects, with all applicable laws, rules, regulations and
orders (including ERISA and environmental laws), except, in any case, where the
failure so to comply, either individually or in the aggregate, could not be
reasonably expected to have a Material Adverse Effect.

     SECTION 5.07.  Use of
Proceeds and Letters of Credit.  The proceeds of the Loans will be used
only for working capital and general corporate purposes, including to support
commercial paper.  No part of the proceeds of any Loan will be used, whether
directly or indirectly, for any purpose that entails a violation of any of the
Regulations of the Board, including Regulations T, U and X.  Letters of
Credit will be issued only for general corporate purposes.

ARTICLE
VI

Negative Covenants

     Until the Commitments have expired or
terminated and the principal of and interest on each Loan and all fees payable
hereunder have been paid in full and all Letters of Credit have expired or
terminated and all LC Disbursements shall have been reimbursed, each of Parent
and the Borrower covenants and agrees with the Lenders that:

     SECTION
6.01.  Subsidiary Indebtedness.  Parent will not permit any Subsidiary
(other than the Borrower) to create, assume or suffer to exist, any
Indebtedness, other than:

(a)  Indebtedness owed to Parent or to a wholly owned Subsidiary;

(b)  Indebtedness existing on the date hereof (whether such Indebtedness is
Indebtedness of a subsidiary of Parent or a subsidiary of the Borrower) and
described on Schedule 6.01 (the "Existing Indebtedness"), and any
Indebtedness extending the maturity of, or refunding or refinancing, in whole
or in part, the Existing Indebtedness; provided that the principal
amount of such Existing Indebtedness shall not be increased above the principal
amount thereof outstanding immediately prior to such extension, refunding or
refinancing, and the direct and contingent obligors therefor shall not be
changed as a result of, or in connection with, such extension, refunding or
refinancing;

(c)  endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business;

(d)  Indebtedness incurred in connection with the sale or other disposition
of accounts receivable arising in connection with the Receivables Financing
Facility, including Indebtedness consisting of indemnification obligations of
the Subsidiaries and Parent's guarantee thereof;

(e)  Indebtedness of any Person that becomes a Subsidiary after the date
hereof that is existing at the time such Person becomes a Subsidiary (other
than Indebtedness incurred solely in contemplation of such Person becoming a
Subsidiary) and any Indebtedness extending the maturity of, or refunding or
refinancing, such Indebtedness, in whole or in part; provided that the
principal amount of such Indebtedness shall not be increased above the
principal amount thereof outstanding immediately prior to such extension,
refunding or refinancing, and the direct and contingent obligors therefor shall
not be changed as a result of, or in connection with, such extension, refunding
or refinancing; and

(f)  other Indebtedness in an aggregate principal amount at any time
outstanding not to exceed 10% of Consolidated Net Worth.

     SECTION 6.02.  Liens. 
Parent will not, and will not permit any Subsidiary to, create, incur, assume
or suffer to exist any Lien on or with respect to any of its assets of any
character (including accounts) whether now owned or hereafter acquired, or
assign any accounts or other right to receive income, except:

(a)  Liens created or existing under the Loan Documents; 

(b)  Permitted Encumbrances;

(c)  the Liens existing on the date hereof and described on Schedule 6.02
(whether such Liens are on the assets of Parent or any of its subsidiaries);

(d)  purchase money Liens upon or in real property or equipment acquired or
held in the ordinary course of business to secure the purchase price of such
property or equipment or to secure Indebtedness incurred solely for the purpose
of financing the acquisition, construction or improvement of any such property
or equipment to be subject to such Liens, or Liens existing on any such
property or equipment at the time of acquisition (other than any such Liens
created in contemplation of such acquisition that were not incurred to finance
the acquisition of such property or equipment), or extensions, renewals or
replacements of any of the foregoing for the same or a lesser amount; provided
that no such Lien shall extend to or cover any properties of any character
other than the real property or equipment being acquired, constructed or
improved (except that Liens incurred in connection with the construction or
improvement of real property may extend to additional real property immediately
contiguous to such property being constructed or improved) and no such
extension, renewal or replacement shall extend to or cover any such properties
not theretofore subject to the Lien being extended, renewed or replaced;

(e)  Liens arising in connection with Capital Lease Obligations; provided
that no such Lien shall extend to or cover any assets other than the assets
subject to the applicable capital leases;

(f)  Liens on property of a Person existing at the time such Person is
merged into or consolidated with Parent or any Subsidiary or becomes a
Subsidiary; provided that such Liens (other than replacement Liens
permitted under clause (k) below) were not created in contemplation of
such merger, consolidation or investment and do not extend to any assets other
than those of the Person merged into or consolidated with Parent or such
Subsidiary or acquired by the Parent or such Subsidiary; 

(g)  Liens on accounts receivable and other related assets arising solely
in connection with the sale or other disposition of such accounts receivable in
the ordinary course of business of Parent and the Subsidiaries pursuant to the
Receivables Financing Facility and the sale of certain accounts receivable to
General Electric Capital Corporation;

(h)  Liens securing Documentary LCs or Trade Letters of Credit; provided
that no such Lien shall extend to or cover any assets of Parent or any
Subsidiary other than the inventory (and bills of lading and other documents
related thereto) being financed by any such Documentary LCs or Trade Letter of
Credit, as the case may be;

(i)  Liens in respect of goods consigned to Parent or any of its
Subsidiaries in the ordinary course of business; provided that such
Liens are limited to the goods so consigned;

(j)  Liens (other than on inventory) securing Indebtedness incurred by
Parent or the Subsidiaries; provided that the sum of the aggregate
amount of such Indebtedness at any time outstanding shall not exceed
$500,000,000; and

(k)  the replacement, extension or renewal of any Lien permitted by
clause (c) or (f) above upon or in the same property theretofore subject
thereto or, in the case of Liens on real property and related personal property
of Parent or any of the Subsidiaries, upon or in substitute property of like
kind of Parent or such Subsidiary, as the case may be, determined in good faith
by the Board of Directors of Parent or such Subsidiary to be of the same or
lesser value than the property theretofore subject thereto, or the replacement,
extension or renewal (without increase in the amount or change in any direct or
contingent obligor) of the Indebtedness secured thereby.

     SECTION 6.03.  Fundamental
Changes; Conduct of Business.  (a)  Parent will not, and will not
permit the Borrower or any other Material Subsidiary to, merge or consolidate
with or into any Person except that (i) any Subsidiary may merge or
consolidate with or into any other Subsidiary (provided that, if the Borrower
is a party to any such merger or consolidation, the Borrower shall be the surviving
entity and shall remain a direct, wholly owned subsidiary of Parent),
(ii) any Subsidiary may merge into Parent and Parent may merge with any
other Person, so long as in either case Parent is the surviving corporation,
(iii) in connection with any acquisition, any Subsidiary may merge into or
consolidate with any other Person or permit any other Person to merge into or
consolidate with it, so long as the Person surviving such merger shall be a
Subsidiary (provided that, if the Borrower is a party to any such merger or
consolidation, the Borrower shall be the surviving entity and shall remain a
direct, wholly owned subsidiary of Parent) and (iv) David's Bridal, Inc. and
Priscilla of Boston, Inc. may merge or consolidate with another Person
following the sale by Parent or Borrower of either such Subsidiary; provided
that in each case, no Event of Default shall have occurred and be continuing at
the time of such proposed transaction or would result therefrom.

(b)  Parent and the Borrower will not liquidate or
dissolve, and Parent will not, and will not permit any Subsidiary to sell,
transfer, lease or otherwise dispose of (in one transaction or in a series of
transactions) all or substantially all of the assets of Parent and the
Subsidiaries, taken as a whole (whether now owned or hereafter acquired).

(c)  Parent will not, and will not permit any
Subsidiary to, engage to any material extent in any business other than
businesses of the type conducted by Parent and its subsidiaries on the date of
execution of this Agreement and businesses reasonably related thereto.

     SECTION 6.04.  Sale and
Leaseback Transactions.  Parent will not, and will not permit any
Subsidiary to, enter into any arrangement, directly or indirectly, whereby it
shall sell or transfer any property, real or personal, used or useful in its
business, whether now owned or hereinafter acquired, and thereafter rent or
lease such property or other property that it intends to use for substantially
the same purpose or purposes as the property sold or transferred, except for
(a) any such sale of any fixed or capital assets that is made for cash
consideration in an amount not less than the cost of such fixed or capital
asset and is consummated within 90 days after Parent or such Subsidiary
acquires or completes the construction of such fixed or capital asset and (b)
any such sale of any fixed or capital assets for fair market value; provided
that the fair market value of all such assets sold in reliance upon this clause
(b) plus the aggregate amount of Indebtedness at any time outstanding secured
by Liens in reliance on Section 6.02(j) shall not exceed 12.5% of Consolidated
Net Tangible Assets, determined as of the date of any such sale.

     SECTION 6.05.  Leverage
Ratio.  Parent will not permit the Leverage Ratio as of the last day of any
Measurement Period to exceed 0.62 to 1.00.

     SECTION 6.06.  Interest
Coverage Ratio.  Parent will not permit the Interest Coverage Ratio as of
the last day of any Measurement Period to be less than 3.25 to 1.00.

ARTICLE VII

Events of Default

     If any of the following events ("Events of
Default") shall occur:

  

(a)  the Borrower shall fail to pay any principal of any Loan when and as
the same shall become due and payable, whether at the due date thereof or at a
date fixed for prepayment thereof or otherwise;

(b)  the Borrower or Parent shall fail to pay any interest on any Loan or
any fee or any other amount (other than an amount referred to in
clause (a) of this Article) payable under this Agreement, when and as the
same shall become due and payable, and such failure shall continue unremedied
for a period of three Business Days;

(c)  any representation or warranty made or deemed made by or on behalf of
either Loan Party in or in connection with any Loan Document shall prove to
have been incorrect in any material respect when made or deemed made;

(d)  either Loan Party shall fail to observe or perform any covenant,
condition or agreement contained in Section 5.01(c) or (e), 5.02 (with
respect to Parent's or the Borrower's existence) or 5.07 or in Article VI;

(e)  either Loan Party shall fail to observe or perform any covenant, condition
or agreement contained in any Loan Document (other than those specified in
clause (a), (b) or (d) of this Article), and such failure shall continue
unremedied for a period of 30 days after notice thereof from the Paying
Agent to Parent or the Borrower (which notice will be given at the request of
any Lender);

(f)  Parent, the Borrower or any other Subsidiary shall fail to make
any payment (whether of principal or interest and regardless of amount) in
respect of any Material Indebtedness, when and as the same shall become due and
payable (after giving effect to any applicable grace periods);

(g)  any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that enables or
permits (after giving effect to any applicable grace periods) the holder or
holders of any Material Indebtedness or any trustee or agent on its or their
behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its
scheduled maturity; provided that this clause (g) shall not apply
to secured Indebtedness that becomes due as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness;

(h)  an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other
relief in respect of Parent, the Borrower or any other Subsidiary or its debts,
or of a substantial part of its assets, under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect or
(ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for Parent, the Borrower or any other
Subsidiary or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed for 60 days or an order
or decree approving or ordering any of the foregoing shall be entered;

(i)  Parent, the Borrower or any other Subsidiary shall
(i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in clause (h) of
this Article, (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for Parent,
the Borrower or any other Subsidiary or for a substantial part of its assets,
(iv) file an answer admitting the material allegations of a petition filed
against it in any such proceeding, (v) make a general assignment for the
benefit of creditors or (vi) take any action for the purpose of effecting
any of the foregoing;

(j)  Parent, the Borrower or any other Subsidiary shall become unable,
admit in writing its inability or fail generally to pay its debts as they
become due;

(k)  one or more judgments for the payment of money in an aggregate amount
in excess of $150,000,000 shall be rendered against Parent, the Borrower, any
other Subsidiary or any combination thereof and the same shall remain
undischarged for a period of 30 consecutive days during which execution
shall not be effectively stayed, or any action shall be legally taken by a
judgment creditor to attach or levy upon any assets of Parent, the Borrower or
any other Subsidiary to enforce any such judgment; provided that any
such judgments shall only result in an Event of Default under this clause (k)
if and to the extent that the aggregate amount of such judgments not covered by
a valid and binding policy of insurance between the defendant and the insurer
covering the payment thereof exceeds $150,000,000 so long as such insurer,
which shall be rated at least "A" by A.M. Best Company, has been notified of,
and has not disputed the claim made for payment of, the amount of such
judgments;

(l)  an ERISA Event shall have occurred that, when taken together with all
other ERISA Events that have occurred, could reasonably be expected to result
in liability of Parent, the Borrower or any other Subsidiary in an aggregate
amount exceeding $150,000,000;

(m)  Parent's Guarantee of the Obligations purported to be created under
the Guarantee Agreement shall cease to be, or shall be asserted by Parent not
to be, in full force and effect (other than in accordance with the express
terms of any Loan Document); or 

(n)  a Change in Control shall occur;

  

then, and in every such event (other than an event
with respect to Parent or the Borrower described in clause (h) or (i) of
this Article), and at any time thereafter during the continuance of such event,
the Paying Agent may, and at the request of the Required Lenders shall, by
notice to Parent or the Borrower, take either or both of the following actions,
at the same or different times:  (i) terminate the Commitments,
and thereupon the Commitments shall terminate immediately, and
(ii) declare the Loans then outstanding to be due and payable in whole (or
in part, in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of
the Loans so declared to be due and payable, together with accrued interest
thereon and all fees and other obligations of the Loan Parties accrued
hereunder, shall become due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Loan Parties; and in case of any event with respect to the Borrower
described in clause (h) or (i) of this Article, the Commitments shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and all fees and other obligations of
the Loan Parties accrued hereunder, shall automatically become due and payable,
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Loan Parties.

ARTICLE
VIII

The Agents

     Each of the Lenders and the Issuing Banks
hereby irrevocably appoints the each Agent as its agent and authorizes each
Agent to take such actions on its behalf and to exercise such powers as are
delegated to such Agent by the terms of the Loan Documents, together with such
actions and powers as are reasonably incidental thereto.

     Each bank serving as an Agent hereunder shall
have the same rights and powers in its capacity as a Lender as any other Lender
and may exercise the same as though it were not an Agent, and such bank and its
Affiliates may accept deposits from, lend money to and generally engage in any
kind of business with Parent, the Borrower or any other Subsidiary or other
Affiliate thereof as if it were not an Agent hereunder.

     No Agent shall have any duties or obligations
except those expressly set forth in the Loan Documents.  Without limiting the
generality of the foregoing, (a) no Agent shall be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) no Agent shall have any duty to take any discretionary
action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated by the Loan Documents that such Agent is required
to exercise in writing as directed by the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02), and (c) except as
expressly set forth in the Loan Documents, no Agent shall have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to Parent, the Borrower or any of the other Subsidiaries that is
communicated to or obtained by the bank serving as an Agent or any of its
Affiliates in any capacity.  No Agent shall be liable for any action taken or
not taken by it with the consent or at the request of the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02) or in the absence of its own
gross negligence or wilful misconduct.  No Agent shall be deemed to have
knowledge of any Default unless and until written notice thereof is given such
Agent by Parent, the Borrower or a Lender, and no Agent shall be responsible
for or have any duty to ascertain or inquire into (i) any statement, warranty
or representation made in or in connection with any Loan Document,
(ii) the contents of any certificate, report or other document delivered
hereunder or in connection herewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth in
any Loan Document, (iv) the validity, enforceability, effectiveness or
genuineness of any Loan Document or any other agreement, instrument or
document, or (v) the satisfaction of any condition set forth in
Article IV or elsewhere in any Loan Document, other than to confirm
receipt of items expressly required to be delivered to such Agent.

     Each Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed
by it to be genuine and to have been signed or sent by the proper Person.  Each
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any
liability for relying thereon.  Each Agent may consult with legal counsel (who
may be counsel for Parent or the Borrower), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not
taken by it in accordance with the advice of any such counsel, accountants or
experts.

     Each Agent may perform any and all its duties
and exercise its rights and powers by or through any one or more sub-agents
appointed by such Agent.  Each Agent and any such sub-agent may perform any and
all its duties and exercise its rights and powers through their respective
Related Parties.  The exculpatory provisions of the preceding paragraphs shall
apply to any such sub-agent and to the Related Parties of each Agent and any
such sub-agent, and shall apply to their respective activities in connection
with the syndication of the credit facilities provided for herein as well as
activities as such Agent.

     Subject to the appointment and acceptance of a
successor Paying Agent or Administrative Agent as provided in this paragraph,
the Paying Agent or an Administrative Agent may resign at any time by notifying
the Lenders, the Issuing Banks and Parent.  Upon any such resignation, the
Required Lenders shall have the right with the consent of Parent (not to be
unreasonably withheld), to appoint a successor.  If no successor shall have
been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Paying Agent or Administrative
Agent, as the case may be, gives notice of its resignation, then the retiring
Paying Agent or Administrative Agent may, on behalf of the Lenders and the
Issuing Banks, appoint a successor Paying Agent or Administrative Agent, as
applicable, which shall be a bank with an office in New York,
New York, or an Affiliate of any such bank.  Upon the acceptance of its
appointment as Paying Agent or Administrative Agent hereunder by a successor,
such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Paying Agent or Administrative Agent, as
applicable, and the retiring Paying Agent or Administrative Agent shall be
discharged from its duties and obligations hereunder.  The fees payable by either
Loan Party to a successor Paying Agent or Administrative Agent shall be the
same as those payable to its predecessor unless otherwise agreed between such
Loan Party and such successor.  After the Paying Agent's or Administrative
Agent's resignation hereunder, the provisions of this Article and
Section 9.03 shall continue in effect for the benefit of such retiring
Paying Agent or Administrative Agent, its sub-agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any
of them while it was acting as Paying Agent or Administrative Agent.

     Each Lender acknowledges that it has,
independently and without reliance upon any Agent or any other Lender and based
on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement.  Each Lender also
acknowledges that it will, independently and without reliance upon any Agent or
any other Lender and based on such documents and information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or
not taking action under or based upon this Agreement, any other Loan Document
or related agreement or any document furnished hereunder or thereunder.

ARTICLE
IX

Miscellaneous

     SECTION 9.01.  Notices. 
(a)  Except in the case of notices and other communications expressly
permitted to be given by telephone (and subject to paragraph (b) below), all
notices and other communications provided for herein shall be in writing and
shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

  

(i) if to Parent or the Borrower, to it at Macy's, Inc., 7 West  Seventh
Street, Cincinnati, Ohio 45202, Attention of the Chief Financial Officer, with
a copy to the General Counsel (other than in the case of any notice or
communication provided for under Article II) (Telecopy
No. (513) 579-7462);

(ii) if to the Paying Agent or JPMorgan Chase Bank, N.A. as Administrative
Agent, Issuing Bank or Swingline Lender, to JPMorgan Chase Bank, N.A., Loan and
Agency Services Group, 1111 Fanin Street, Houston, Texas 77002, Attention of
Jennifer Anyigbo (Telecopy No. (713) 750-2782), with a copy to JPMorgan Chase
Bank, N.A., 270 Park Avenue, New York, New York 10017, Attention
of Barry Bergman  (Telecopy No. (212) 270-6637);

(iii) if to Bank of America, N.A., as Administrative Agent, Issuing Bank or
Swingline Lender, to it at 2001 Clayton Road, Building B, 2nd Floor,
CA4-704-02-25, Concord, California 94520.  Attention of GK Lapitan (Telecopy
No. (888) 969-9170); and

(iv) if to any other Lender, Swingline Lender or Issuing Bank, to it at its
address (or telecopy number) set forth in its Administrative Questionnaire.

  

(b)  Notices and other communications to the
Lenders hereunder may be delivered or furnished by electronic communications
pursuant to procedures approved by the Paying Agent; provided that the
foregoing shall not apply to notices pursuant to Article II unless
otherwise agreed by the Paying Agent and the applicable Lender.  The Paying
Agent, Parent or the Borrower may, in its discretion, agree to accept notices
and other communications to it hereunder by electronic communications pursuant
to procedures approved by it; provided that approval of such procedures
may be limited to particular notices or communications.

(c)  Any party hereto may change its address or
telecopy number for notices and other communications hereunder by notice to the
other parties hereto.  All notices and other communications given to any party
hereto in accordance with the provisions of this Agreement shall be deemed to
have been given on the date of receipt.

     SECTION 9.02.  Waivers;
Amendments.  (a)  No failure or delay by the Paying Agent, any Issuing
Bank or any Lender in exercising any right or power hereunder or under any
other Loan Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The
rights and remedies of the Paying Agent, the Issuing Banks and the Lenders
hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have.  No waiver
of any provision of any Loan Document or consent to any departure by any Loan
Party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given.  Without limiting the generality of the foregoing, the making
of a Loan or issuance of a Letter of Credit shall not be construed as a waiver
of any Default, regardless of whether the Paying Agent, any Lender or any
Issuing Bank may have had notice or knowledge of such Default at the time.

(b)  Neither this Agreement nor any other Loan
Document nor any provision hereof or thereof may be waived, amended or modified
except, in the case of this Agreement, pursuant to an agreement or agreements
in writing entered into by Parent, the Borrower and the Required Lenders or by
Parent, the Borrower and the Paying Agent with the consent of the Required
Lenders or, in the case of any other Loan Document, pursuant to an agreement or
agreements in writing entered into by the Paying Agent and the Loan Party or
Loan Parties that are parties thereto with the consent of the Required Lenders;
provided that no such agreement shall (i) except as contemplated by
Section 2.20, increase the Commitment of any Lender without the written consent
of such Lender, (ii) reduce the principal amount of any Loan or LC
Disbursement or reduce the rate of interest thereon, or reduce any fees payable
hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the scheduled date of payment of the principal amount of
any Loan or LC Disbursement, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the
written consent of each Lender affected thereby, (iv) change
Section 2.18(b) or (c) in a manner that would alter the pro rata sharing
of payments required thereby, without the written consent of each Lender,
(v) change any of the provisions of this Section or the definition of
"Required Lenders" or any other provision of any Loan Document specifying the
number or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, without the
written consent of each Lender or (vi) release Parent from its Guarantee
under the Guarantee Agreement or limit its liability thereunder, without the
written consent of each Lender; provided further that no such agreement
shall amend, modify or otherwise affect the rights or duties of any Agent, an
Issuing Bank or a Swingline Lender hereunder without the prior written consent
of such Agent, such Issuing Bank or such Swingline Lender, as the case may be. 
Notwithstanding the foregoing, the consent of the Required Lenders shall not be
required to amend this Agreement to increase the Total Commitments pursuant to
Section 2.20.

     SECTION 9.03.  Expenses;
Indemnity; Damage Waiver.  (a)  The Borrower shall pay (i) all
reasonable out-of-pocket expenses incurred by each Agent and its Affiliates,
including the reasonable fees, charges and disbursements of one outside counsel
(and any local counsel where appropriate) for the Agents, collectively, in
connection with the syndication of the credit facilities provided for herein,
the preparation and administration of the Loan Documents or any amendments,
modifications or waivers of the provisions thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), and
(ii) all out-of-pocket expenses incurred by any Agent, any Issuing Bank or
any Lender, including the fees, charges and disbursements of any counsel for
any Agent, any Issuing Bank or any Lender, in connection with the enforcement
or protection of its rights in connection with the Loan Documents, including
its rights under this Section, or in connection with the Loans made or Letters
of Credit issued hereunder, including all such out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans or
Letters of Credit.

(b)  The Borrower shall indemnify each Agent, each
Issuing Bank and each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an "Indemnitee") against, and
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of any Loan Document or any agreement or instrument
contemplated hereby, the performance by the parties to the Loan Documents of
their respective obligations thereunder or the consummation of the Transactions
or any other transactions contemplated hereby, (ii) any Loan or Letter of
Credit or the use of the proceeds therefrom (including any refusal by an
Issuing Bank to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with
the terms of such Letter of Credit), or (iii) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory and regardless
of whether any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or wilful misconduct of such Indemnitee.

(c)  To the extent that the Borrower fails to pay
any amount required to be paid by it to an Agent, an Issuing Bank or a
Swingline Lender under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to such Agent, such Issuing Bank or such Swingline
Lender, as the case may be, such Lender's Applicable Percentage (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount; provided that (i) the unreimbursed
expense or indemnified loss, claim, damage, liability or related expense, as
the case may be, was incurred by or asserted against such Agent, such Issuing
Bank or such Swingline Lender in its capacity as such and (ii) if an Issuing
Bank separately agrees, as contemplated by the last sentence of Section
2.06(f), to be subject to a standard of care different than that set forth
therein, no Lender shall be liable to such Issuing Bank hereunder for any
greater amount than would have been due if such Issuing Bank had not agreed to
such different standard of care.

(d)  To the extent permitted by applicable law,
neither Parent nor the Borrower shall assert, and each hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, any Loan Document or any
agreement or instrument contemplated thereby, the Transactions or the other
transactions contemplated hereby, any Loan or Letter of Credit or the use of
the proceeds thereof.

(e)  All amounts due under this Section shall be
payable promptly after written demand therefor.

     SECTION 9.04.  Successors
and Assigns.  (a)  The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby (including any Affiliate of an Issuing
Bank that issues any Letter of Credit), except that (i) neither Parent nor
the Borrower may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by Parent or the Borrower without such consent shall be
null and void) and (ii) no Lender may assign or otherwise transfer its
rights or obligations hereunder except in accordance with this Section.  Nothing
in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of an Issuing Bank that issues any
Letter of Credit), Participants (to the extent provided in paragraph (c)
of this Section) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Agents, the Issuing Banks and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

(b)  (i)  Subject to the conditions set forth in
paragraph (b)(ii) below, any Lender may assign to one or more assignees all or
a portion of its rights and obligations under this Agreement (including all or
a portion of its Commitment and the Loans at the time owing to it) with the
prior written consent (such consent not to be unreasonably withheld) of:

  
    

(A)  Parent or the Borrower; provided that no
consent of Parent or the Borrower shall be required for an assignment to a
Lender or, if an Event of Default has occurred and is continuing, any other
assignee;

(B)  the Paying Agent; provided that no consent of
the Paying Agent shall be required for an assignment of a Commitment to an
assignee that is a Lender with a Commitment immediately prior to giving effect
to such assignment; and

(C)  each
Issuing Bank and each Swingline Lender; provided that no consent of an
Issuing Bank or a Swingline Lender shall be required for an assignment of a
Commitment to an assignee that is a Lender with a Commitment immediately prior
to giving effect to such assignment.

    

(ii)  Assignments shall be
subject to the following additional conditions:

    

(A)  except in the case of an assignment to a Lender or an
Affiliate of a Lender or an assignment of the entire remaining amount of the
assigning Lender's Commitment or Competitive Loans, the amount of the
Commitment of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Assumption with respect to such assignment is
delivered to the Paying Agent) shall not be less than $10,000,000, unless each
of the Borrower (or Parent) and the Paying Agent otherwise consent; provided
that no such consent of the Borrower (or Parent) shall be required if an Event
of Default has occurred and is continuing;

(B)  each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender's rights and
obligations under this Agreement; provided that this clause shall
not apply to rights in respect of outstanding Competitive Loans;

(C)  the parties to each assignment shall execute and
deliver to the Paying Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500; and

(D)  the assignee, if it shall not be a Lender, shall
deliver to the Paying Agent an Administrative Questionnaire.

    

(iii)  Subject to acceptance and recording thereof
pursuant to paragraph (b)(iv) of this Section, from and after the
effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03). 
Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this Section 9.04 shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with paragraph (c) of this Section.

(iv)  The Paying Agent, acting for this purpose as
an agent of the Loan Parties, shall maintain at one of its offices a copy of
each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitment of,
and principal amount of the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time (the "Register").  The
entries in the Register shall be conclusive, and the Loan Parties, the Agents,
the Issuing Banks and the Lenders may treat each Person whose name is recorded
in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary.  The
Register shall be available for inspection by the Borrower, any Issuing Bank
and any Lender, at any reasonable time and from time to time upon reasonable
prior notice.

(v)  Upon its receipt of a duly completed
Assignment and Assumption executed by an assigning Lender and an assignee, the
assignee's completed Administrative Questionnaire (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) of this Section and any written consent to such
assignment required by paragraph (b) of this Section, the Paying Agent
shall accept such Assignment and Assumption and record the information
contained therein in the Register.  No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as
provided in this paragraph.

  

(c)  (i)  Any Lender may, without the consent of
the Loan Parties, the Agents, the Issuing Banks or the Swingline Lenders, sell
participations to one or more banks or other entities (a "Participant")
in all or a portion of such Lender's rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to
it); provided that (A) such Lender's obligations under this
Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (C) the Loan Parties, the Agents, the Issuing Banks and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under the Loan Documents. 
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce the Loan Documents and to approve any amendment, modification or waiver
of any provision of the Loan Documents; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver described in the
first proviso to Section 9.02(b) that affects such Participant.  Subject
to paragraph (c)(ii) of this Section, the Loan Parties agree that each
Participant shall be entitled to the benefits of Sections 2.15, 2.16 and
2.17 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent
permitted by law, each Participant also shall be entitled to the benefits of
Section 9.08 as though it were a Lender, provided such Participant agrees
to be subject to Section 2.18(c) as though it were a Lender.

  

(ii)  A Participant shall not be entitled to
receive any greater payment under Section 2.15 or 2.17 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such
Participant is made with a Loan Party's prior written consent.  A Participant
that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 2.17 unless a Loan Party is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Loan Parties, to comply with Section 2.17(e) as though it
were a Lender.

  

(d)  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

     SECTION 9.05.  Survival. 
All covenants, agreements, representations and warranties made by the Loan
Parties in the Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement or any other Loan
Document shall be considered to have been relied upon by the other parties
hereto and thereto and shall survive the execution and delivery of the Loan
Documents and the making of any Loans and issuance of any Letters of Credit,
regardless of any investigation made by any such other party or on its behalf
and notwithstanding that any Agent, any Issuing Bank or any Lender may have had
notice or knowledge of any Default or incorrect representation or warranty at
the time any credit is extended hereunder, and shall continue in full force and
effect as long as the principal of or any accrued interest on any Loan or any
fee or any other amount payable under this Agreement or any other Loan Document
is outstanding and unpaid or any Letter of Credit is outstanding and so long as
the Commitments have not expired or terminated.  The provisions of
Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and
remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this
Agreement or any other Loan Document or any provision hereof or thereof.

     SECTION 9.06.  Counterparts;
Integration; Effectiveness.  This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall
constitute a single contract.  This Agreement, the other Loan Documents and any
separate letter agreements with respect to fees payable to any Agent, Lender or
Issuing Bank constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof.  Except as provided in
Section 4.01, this Agreement shall become effective when it shall have
been executed by the Paying Agent and when the Paying Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties hereto (other than the Borrower), and thereafter shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.  Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of
a manually executed counterpart of this Agreement.

     SECTION 9.07.  Severability. 
Any provision of this Agreement held to be invalid, illegal or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof; and
the invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

     SECTION 9.08.  Right of
Setoff.  If an Event of Default shall have occurred and be continuing, each
Lender and each of its Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other obligations at any time owing by such Lender or
Affiliate to or for the credit or the account of either Loan Party against any
of and all the obligations of such Loan Party now or hereafter existing under
any Loan Document held by such Lender, irrespective of whether or not such
Lender shall have made any demand under any Loan Document and although such
obligations may be unmatured.  The rights of each Lender under this Section are
in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.

     SECTION 9.09.  Governing
Law; Jurisdiction; Consent to Service of Process.  (a)  This Agreement
shall be construed in accordance with and governed by the law of the State of
New York.

(b)  Each of Parent and the Borrower hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the
Southern District of New York, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or any
other Loan Document, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in
such Federal court.  Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by law.  Nothing in
this Agreement or any other Loan Document shall affect any right that any
Agent, any Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or any other Loan Document against
Parent, the Borrower or their respective properties in the courts of any
jurisdiction.

(c)  Each of Parent and the Borrower hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or any other Loan Document in any court referred to in paragraph
(b) of this Section.  Each of the parties hereto hereby irrevocably waives, to
the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

(d)  Each party to this Agreement irrevocably consents
to service of process in the manner provided for notices in Section 9.01. 
Nothing in this Agreement or any other Loan Document will affect the right of
any party to this Agreement to serve process in any other manner permitted by
law.

     SECTION 9.10.  WAIVER OF
JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

     SECTION 9.11.  Headings. 
Article and Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be taken into consideration in interpreting,
this Agreement.

     SECTION 9.12.  Confidentiality. 
Each of the Agents, the Issuing Banks and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates' directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any
regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement,
(e) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this
Section, to any assignee of or Participant in, or any prospective assignee of
or Participant in, any of its rights or obligations under this Agreement,
(g) with the consent of either Loan Party or (h) to the extent such
Information (i) becomes publicly available other than as a result of a
breach of this Section or (ii) becomes available to any Agent, any Issuing
Bank or any Lender on a nonconfidential basis from a source other than Parent
or the Borrower.  For the purposes of this Section, "Information" means
all information received from Parent or the Borrower relating to Parent or the
Borrower or their respective businesses, other than any such information that
is available to any Agent, any Issuing Bank or any Lender on a nonconfidential
basis prior to disclosure by Parent or the Borrower.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

     SECTION 9.13.  Interest
Rate Limitation.  Notwithstanding anything herein to the contrary, if at
any time the interest rate applicable to any Loan, together with all fees,
charges and other amounts which are treated as interest on such Loan under
applicable law (collectively the "Charges"), shall exceed the maximum
lawful rate (the "Maximum Rate") which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of
the operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

     SECTION 9.14.  Patriot
Act.  Each Lender hereby notifies the Loan
Parties that pursuant to the requirements of the Patriot Act, it is required to
obtain, verify and record information that identifies the Loan Parties, which
information includes the name and address of the Loan Parties and other
information that will allow such Lender to identify the Loan Parties in
accordance with the Act.

     SECTION 9.15.  Conversion
of Currencies.  (a)  If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum due under
this Agreement in dollars into another currency, the parties hereto agree, to
the fullest extent that they may legally and effectively do so, that the rate
of exchange used shall be that at which in accordance with normal banking
procedures the Paying Agent could purchase dollars with such other currency in New
York, New York, on the Business Day immediately preceding the day on which
final judgment is given.

(b)  The obligations of
the Borrower in respect of any sum due to the Paying Agent, any Lender or any
Issuing Bank hereunder in dollars shall, to the extent permitted by applicable
law, notwithstanding any judgment in a currency other than dollars, be
discharged only to the extent that on the Business Day following receipt of any
sum adjudged to be so due in the judgment currency, the Paying Agent, such
Lender or such Issuing Bank may in accordance with normal banking procedures
purchase dollars in the amount originally due to the Paying Agent, such Lender
or such Issuing Bank with the judgment currency.  If the amount of dollars so
purchased is less than the sum originally due to the Paying Agent, such Lender
or such Issuing Bank, the Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Paying Agent, such Lender
or such Issuing Bank against the resulting loss.

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized
officers as of the day and year first above written.

MACY'S,
INC.,

by

/s/ Karen M. Hoguet

Name:  Karen M. Hoguet

Title:  Executive Vice President and 

Chief Financial Officer

MACY'S RETAIL HOLDINGS, INC.,

by

/s/ Dennis J. Broderick

Name:  Dennis J. Broderick

Title:  President

JPMORGAN CHASE BANK, N.A.,

individually and as Paying Agent and Administrative Agent,

by

/s/ Barry Bergman

Name:  Barry Bergman

Title:  Managing Director

BANK OF AMERICA, N.A., individually and as Administrative
Agent,

by

/s/ Thomas J. Kane

Name:  Thomas J. Kane

Title:  Senior Vice President

SIGNATURE PAGE TO THE AMENDED AND RESTATED CREDIT AGREEMENT
DATED AS OF AUGUST 30, 2007, AMONG MACY'S, INC. (formerly known as FEDERATED
DEPARTMENT STORES, INC.), MACY'S RETAIL HOLDINGS, INC. (formerly known as
FEDERATED RETAIL HOLDINGS, INC.), THE LENDERS PARTY THERETO AND JPMORGAN CHASE
BANK, N.A. AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENTS

	
  Name of Institution:  Credit Suisse, 

  Cayman Islands Branch

  
	
  

  by

  
	

  	

  /s/ Cassandra Droogan

  
	

  	
  Name: Cassandra Droogan

  
	

  	
  Title:   Vice President

  
	

  	
  
	

  	

  /s/ Shaheen Malik

  
	

  	
  Name: Shaheen Malik

  
	

  	
  Title:  Associate

  

 

	
  Name of Institution:  Citibank, N.A.

  
	
  

  by

  
	

  	

  /s/ John McQuiston

  
	

  	
  Name: John McQuiston

  
	

  	
  Title:   Director and Vice
  President

  

 

	
  Name of Institution: U.S. Bank, N.A.

  
	
  

  by

  
	

  	

  /s/ Michael P. Dickman

  
	

  	
  Name:Michael P. Dickman

  
	

  	
  Title:   Vice President

  

 

	
  Name of Institution: Wells Fargo Bank, N.A.

  
	
  

  by

  
	

  	

  /s/ Steve Buehler

  
	

  	
  Name: Steve Buehler

  
	

  	
  Title:   Senior Relationship Manager

  

 

	
  Name of Institution:  The Bank of New York

  
	
  

  by

  
	

  	

  /s/ David B. Wirl

  
	

  	
  Name: David B. Wirl

  
	

  	
  Title:  Vice President

  

 

	
  Name of Institution:  PNC Bank, N.A

  
	
  

  by

  
	

  	

  /s/ C. Joseph Richardson

  
	

  	
  Name: C. Joseph Richardson

  
	

  	
  Title:   Senior Vice President

  

 

	
  Name of Institution: Fifth Third Bank

  
	
  

  by

  
	

  	

  /s/ Megan S. Heisel

  
	

  	
  Name: Megan S. Heisel

  
	

  	
  Title:   Vice President

  

 

	
  Name of Institution:  The Royal Bank of Scotland PLC

  
	
  

  by

  
	

  	

  /s/ Charlotte Sohn Fuiks

  
	

  	
  Name:  Charlotte Sohn Fuiks

  
	

  	
  Title:   Managing Director

  

 

	
  Name of Institution: Wachovia Bank, National Association

  
	
  

  by

  
	

  	

  /s/ Susan T. Gallagher

  
	

  	
  Name:  Susan T. Gallagher

  
	

  	
  Title:   Vice President

  

 

	
  Name of Institution:  Standard Chartered Bank

  
	
  

  by

  
	

  	

  /s/ Alan Babcock

  
	

  	
  Name: Alan Babock

  
	

  	
  Title:   Senior Vice President

  
	

  	
  
	

  	

  /s/ Robert K. Reddington

  
	

  	
  Name: Robert K. Reddington

  
	

  	
  Title:   AVP/Credit Documentation Credit Risk
  Control

  

 

	
  Name of Institution: Union Bank of California, N.A.

  
	
  

  by

  
	

  	

  /s/ Ching Lim

  
	

  	
  Name:  Ching LIm

  
	

  	
  Title:   Vice President

  

 

	
  Name of Institution: William Street Commitment
  Corporation (Recourse only to the assets of William Street Commitment
  Corporation)

  
	
  

  by

  
	

  	

  /s/ Mark Walton

  
	

  	
  Name: Mark Walton

  
	

  	
  Title:   Assistant Vice President

  

 

	
  Name of Institution: Banca Nazionale del Lavor Spa, New
  York Branch

  
	
  

  by

  
	

  	

  /s/ Donna La Spina

  
	

  	
  Name:  Donna La Spina

  
	

  	
  Title:   Relationship Manager

  
	

  	
  
	

  	

  /s/ Antonio Labriola

  
	

  	
  Name:  Antonio Labriola

  
	

  	
  Title:   Vice President

  

 

	
  Name of Institution: First Hawaiian Bank

  
	
  

  by

  
	

  	

  /s/ Dawn Hofmann

  
	

  	
  Name: Dawn Hofmann

  
	

  	
  Title:   Vice PresidentAMENDED AND RESTATED GUARANTEE AGREEMENT

  dated
  as of

  August
  30, 2007,

  among

  MACY'S, INC.

  (formerly known as FEDERATED DEPARTMENT STORES, INC.)

  MACY'S RETAIL
  HOLDINGS, INC.

  (formerly known as FEDERATED RETAIL HOLDINGS, INC.)

  and

  JPMORGAN CHASE BANK, N.A.,

  as
  Paying Agent

  

[Reference No.
6701-495]

TABLE
OF CONTENTS

ARTICLE I

Definitions

SECTION 1.01. Credit Agreement....................................................................................... 1

SECTION 1.02. Other Defined Terms.................................................................................. 1

ARTICLE II

Guarantee

SECTION 2.01. Guarantee................................................................................................... 2

SECTION 2.02. Guarantee of Payment................................................................................. 2

SECTION 2.03. No Limitations............................................................................................ 2

SECTION 2.04. Reinstatement............................................................................................. 3

SECTION 2.05. Agreement To Pay; Subrogation.................................................................. 3

SECTION 2.06. Information................................................................................................. 4

ARTICLE III

Subrogation and Subordination

ARTICLE IV

Miscellaneous

SECTION 4.01. Notices....................................................................................................... 4

SECTION 4.02. Waivers; Amendment.................................................................................. 4

SECTION 4.03. Successors and Assigns.............................................................................. 5

SECTION 4.04. Survival of Agreement................................................................................. 5

SECTION 4.05. Counterparts; Effectiveness; Several
Agreement.......................................... 5

SECTION 4.06. Severability................................................................................................. 5

SECTION 4.07. Right of Set-Off.......................................................................................... 6

SECTION 4.08. Governing Law........................................................................................... 6

SECTION 4.09. Headings.................................................................................................... 6

SECTION 4.10. Termination or Release................................................................................ 6

  
    

     AMENDED AND RESTATED GUARANTEE AGREEMENT dated as of August
30, 2007, among MACY'S, INC. (formerly known as FEDERATED DEPARTMENT STORES,
INC.) ("Parent"), MACY'S RETAIL HOLDINGS, INC. (formerly known as
FEDERATED RETAIL HOLDINGS, INC.) (the "Borrower") and JPMORGAN CHASE
BANK, N.A., as Paying Agent.

    

  

     Reference is made to (a) the Amended and
Restated Credit Agreement dated as of August 30, 2006 (as in effect on the date
hereof, the "Existing Credit Agreement") among Parent, the Borrower, the
lenders 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 and (b)
the Guarantee Agreement dated as of August 30, 2006 (as in effect on the date
hereof, the "Existing Guarantee Agreement") among Parent, the Borrower
and JPMorgan Chase Bank, N.A., as paying agent.  The Existing Credit Agreement
is being amended and restated pursuant to and in accordance with the Amended
and Restated Credit Agreement dated as of August 30, 2007 among Parent, the
Borrower, the Lenders 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 (the "Credit Agreement").  The Lenders have agreed to
extend credit to the Borrower subject to the terms and conditions set forth in
the Credit Agreement.  The obligations of the Lenders to extend such credit are
conditioned upon, among other things, the execution and delivery of this
Agreement.  Parent is the parent company of the Borrower, will derive
substantial benefits from the extension of credit to the Borrower pursuant to
the Credit Agreement and is willing to execute and deliver this Agreement in
order to induce the Lenders to extend such credit.  Accordingly, the parties
hereto agree as follows:

ARTICLE
I

Definitions

     
SECTION 1.01.  Credit
Agreement.   (a)  Capitalized terms used in this Agreement and not
otherwise defined herein have the meanings specified in the Credit Agreement.

(b)  The rules of construction
specified in Section 1.03 of the Credit Agreement also apply to this Agreement.

     SECTION
1.02.  Other Defined Terms.  As used in this Agreement, the following
terms have the meanings specified below:

     "Credit Agreement" has the meaning
assigned to such term in the preliminary statement of this Agreement.

     "Credit Parties" means (a) the
Lenders, (b) the Agents, (c) the Issuing Banks, (d) the
beneficiaries of the Borrower's indemnification obligations under the Credit
Agreement and (e) the successors and assigns of each of the foregoing.

     "Guarantor" means Parent.

     "Obligations" means the due and punctual
payment by the Borrower of (a) the principal of and interest (including
interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (b) each payment required to be made by the Borrower under the
Credit Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of disbursements, interest thereon
(including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) and obligations to provide cash collateral, and
(c) all other monetary obligations of the Borrower to any of the Credit Parties
under the Credit Agreement and each of the other Loan Documents, including
obligations to pay fees, expense reimbursement obligations and indemnification
obligations, whether primary, secondary, direct, contingent, fixed or otherwise
(including monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding).

ARTICLE
II

Guarantee

     SECTION 2.01.  Guarantee. 
The Guarantor unconditionally guarantees, as a primary obligor and not merely
as a surety, the due and punctual payment of the Obligations.  The Guarantor
further agrees that the Obligations may be extended or renewed, in whole or in
part, without notice to or further assent from it, and that it will remain
bound upon its guarantee notwithstanding any extension or renewal of any
Obligation.  The Guarantor waives presentment to, demand of payment from and
protest to the Borrower of any of the Obligations, and also waives notice of acceptance
of its guarantee and notice of protest for nonpayment.

     SECTION 2.02.  Guarantee
of Payment.  The Guarantor further agrees that its guarantee hereunder
constitutes a guarantee of payment when due and not of collection, and waives
any right to require that any resort be had by the Paying Agent or any other
Credit Party to any security held for the payment of the Obligations or to any
balance of any deposit account or credit on the books of the Paying Agent or
any other Credit Party in favor of the Borrower or any other Person.

     SECTION 2.03.  No
Limitations.  (a)  Except for termination of the Guarantor's
obligations hereunder as expressly provided in Section 4.10, the obligations of
the Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to any
defense or set-off, counterclaim, recoupment or termination whatsoever by
reason of the invalidity, illegality or unenforceability of the Obligations or
otherwise.  Without limiting the generality of the foregoing, the obligations
of the Guarantor hereunder shall not be discharged or impaired or otherwise
affected by (i) the failure of the Paying Agent or any other Credit Party
to assert any claim or demand or to enforce any right or remedy under the
provisions of any Loan Document or otherwise; (ii) any rescission, waiver,
amendment or modification of, or any release from any of the terms or
provisions of, any Loan Document or any other agreement; (iii) the release
of any security held by the Paying Agent or any other Credit Party for the
Obligations or any of them; (iv) any default, failure or delay, wilful or
otherwise, in the payment of the Obligations; or (v) any other act or
omission that may or might in any manner or to any extent vary the risk of the
Guarantor or otherwise operate as a discharge of the Guarantor as a matter of
law or equity (other than the payment in full in cash of all the Obligations). 
The Guarantor expressly authorizes the Credit Parties to take and hold security
for the payment and performance of the Obligations, to exchange, waive or
release any or all such security (with or without consideration), to enforce or
apply such security and direct the order and manner of any sale thereof in
their sole discretion or to release or substitute any one or more other
guarantors or obligors upon or in respect of the Obligations, all without
affecting the obligations of the Guarantor hereunder.

(b)  To the fullest extent
permitted by applicable law, the Guarantor waives any defense based on or
arising out of any defense of the Borrower or the unenforceability of the
Obligations or any part thereof from any cause, or the cessation from any cause
of the liability of the Borrower, other than the payment in full in cash of all
the Obligations.  The Paying Agent and the other Credit Parties may, at their
election, foreclose on any security held by one or more of them by one or more
judicial or nonjudicial sales, accept an assignment of any such security in
lieu of foreclosure, compromise or adjust any part of the Obligations, make any
other accommodation with the Borrower or exercise any other right or remedy
available to them against the Borrower, without affecting or impairing in any
way the liability of the Guarantor hereunder except to the extent the
Obligations have been paid in full in cash.  To the fullest extent permitted by
applicable law, the Guarantor waives any defense arising out of any such
election even though such election operates, pursuant to applicable law, to
impair or to extinguish any right of reimbursement or subrogation or other
right or remedy of the Guarantor against the Borrower or any security.

     SECTION 2.04.  Reinstatement. 
The Guarantor agrees that its guarantee hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any Obligation is rescinded or must otherwise be restored by
the Paying Agent or any other Credit Party upon the bankruptcy or
reorganization of the Borrower or otherwise.  The provisions of this Section
2.04 shall survive any termination or release under Section 4.10.

     SECTION 2.05.  Agreement
To Pay; Subrogation.  In furtherance of the foregoing and not in limitation
of any other right that the Paying Agent or any other Credit Party has at law
or in equity against the Guarantor by virtue hereof, upon the failure of the
Borrower to pay any Obligation when and as the same shall become due, whether
at maturity, by acceleration, after notice of prepayment or otherwise, the
Guarantor hereby promises to and will forthwith pay, or cause to be paid, to
the Paying Agent for distribution to the applicable Credit Parties in cash the
amount of such unpaid Obligation.  Upon payment by the Guarantor of any sums to
the Paying Agent as provided above, all rights of the Guarantor against the
Borrower arising as a result thereof by way of right of subrogation,
contribution, reimbursement, indemnity or otherwise shall in all respects be
subject to Article III.

     SECTION 2.06.  Information. 
The Guarantor assumes all responsibility for being and keeping itself informed
of the Borrower's financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Obligations and the
nature, scope and extent of the risks that the Guarantor assumes and incurs
hereunder, and agrees that none of the Paying Agent or the other Credit Parties
will have any duty to advise the Guarantor of information known to it or any of
them regarding such circumstances or risks.

ARTICLE
III

Subrogation and Subordination

     The Guarantor and the Borrower agree that, in
the event of any payment by the Guarantor in respect of any of the Obligations,
all rights of the Guarantor to indemnity, contribution or subrogation, whether
under applicable law or otherwise, shall be fully subordinated to the
indefeasible payment in full in cash of the Obligations.

ARTICLE
IV

Miscellaneous

     SECTION 4.01.  Notices. 
All communications and notices hereunder shall (except as otherwise expressly
permitted herein) be in writing and given as provided in Section 9.01 of
the Credit Agreement.

     SECTION 4.02.  Waivers;
Amendment.  (a)  No failure or delay by any Agent, any Issuing Bank or
any Lender in exercising any right or power hereunder or under the Credit
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power.  The rights and remedies
of the Agents, the Issuing Banks and the Lenders hereunder and under the Credit
Agreement are cumulative and are not exclusive of any rights or remedies that
they would otherwise have.  No waiver of any provision of this Agreement or
consent to any departure by any Loan Party therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this
Section 4.02, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given.  Without limiting the
generality of the foregoing, the making of a Loan or issuance of a Letter of
Credit shall not be construed as a waiver of any Default, regardless of whether
any Agent, any Lender or any Issuing Bank may have had notice or knowledge of
such Default at the time.  No notice or demand on any Loan Party in any case
shall entitle any Loan Party to any other or further notice or demand in
similar or other circumstances.

(b)  Neither this Agreement nor
any provision hereof may be waived, amended or modified except pursuant to an
agreement or agreements in writing entered into by the Paying Agent and the
Loan Party or Loan Parties with respect to which such waiver, amendment or
modification is to apply, subject to any consent required in accordance with
Section 9.02 of the Credit Agreement.

     SECTION 4.03.  Successors
and Assigns.  Whenever in this Agreement any party hereto is referred to,
such reference shall be deemed to include the permitted successors and assigns
of such party; and all covenants, promises and agreements by or on behalf of
the Guarantor, the Borrower or the Paying Agent that are contained in this
Agreement shall bind and inure to the benefit of their respective successors
and assigns.

     SECTION 4.04.  Survival
of Agreement.  All covenants, agreements, representations and warranties
made by the Loan Parties in the Loan Documents and in the certificates or other
instruments prepared or delivered in connection with or pursuant to this
Agreement or any other Loan Document shall be considered to have been relied
upon by the Lenders and shall survive the execution and delivery of the Loan
Documents and the making of any Loans and issuance of any Letters of Credit,
regardless of any investigation made by any Lender or on its behalf and notwithstanding
that any Agent, any Issuing Bank or any Lender may have had notice or knowledge
of any Default or incorrect representation or warranty at the time any credit
is extended under the Credit Agreement, and shall continue in full force and
effect as long as the principal of or any accrued interest on any Loan or any
fee or any other amount payable under any Loan Document is outstanding and
unpaid or any Letter of Credit is outstanding and so long as the Commitments
have not expired or terminated.

     SECTION 4.05.  Counterparts;
Effectiveness; Several Agreement.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which when taken together
shall constitute single contract.  Delivery of an executed signature page to
this Agreement by facsimile transmission shall be as effective as delivery of a
manually signed counterpart of this Agreement.  This Agreement shall become
effective when it shall have been executed by the Paying Agent and when the
Paying Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each Loan Party, and thereafter shall be
binding upon each Loan Party and the Paying Agent, and shall inure to the
benefit of each Loan Party, the Paying Agent and the other Credit Parties and
their respective successors and assigns, except that no Loan Party shall have
the right to assign or transfer its rights or obligations hereunder or any
interest herein (and any such assignment or transfer shall be void) except as
expressly contemplated by this Agreement or the Credit Agreement.

     SECTION 4.06.  Severability. 
Any provision of this Agreement held to be invalid, illegal or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity, illegality or uneforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof; and
the invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.  The parties shall
endeavor in good‐faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

     SECTION 4.07.  Right of
Set-Off.  If an Event of Default shall have occurred and be continuing,
each Lender and each of its Affiliates is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other obligations at any time owing by such Lender or
Affiliate to or for the credit or the account of the Guarantor against any of
and all the obligations of the Guarantor now or hereafter existing under this
Agreement owed to such Lender, irrespective of whether or not any demand for
payment thereof has been made under this Agreement and although such
obligations may be unmatured.  The rights of each Lender under this Section
4.07 are in addition to other rights and remedies (including other rights of
set-off) which such Lender may have.

     SECTION 4.08.  Governing
Law.  This Agreement shall be construed in accordance with and governed by
the law of the State of New York.

     SECTION 4.09.  Headings. 
Article and Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Agreement and are not to
affect the construction of, or to be taken into consideration in interpreting,
this Agreement.

     SECTION 4.10.  Termination
or Release.  Subject to Section 2.04, this Agreement and the guarantee made
herein shall terminate when the Commitments have terminated, all the
Obligations have been paid in full, the LC Exposure has been reduced to zero
and the Issuing Banks have no further obligations to issue Letters of Credit
under the Credit Agreement.

     IN WITNESS
WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written.

	
  MACY'S, INC.,

  
	
  by  

  
	

  	

  /s/ Karen M. Hoguet

  
	

  	
  Name:  Karen M. Hoguet

  
	

  	
  Title:  Executive Vice President and Chief Financial
  Officer

  

  

  

	
  MACY'S RETAIL HOLDINGS, INC.,

  
	
  by

  
	

  	

  /s/ Dennis J. Broderick

  
	

  	
  Name:  Dennis J. Broderick

  
	

  	
  Title:  President

  

  

  

  

	
  JPMORGAN CHASE BANK, N.A., as

  PAYING Agent,

  
	
  by

  
	

  	

  /s/ Barry Bergman

  
	

  	
  Name:  Barry Bergman

  
	

  	
  Title:  Managing Director

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