Macy's, Inc.
EXHIBIT 10.3
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>exhibit1030422082.htm
<DESCRIPTION>EXHIBIT 10.3
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<title>EMPLOYMENT AGREEMENT</title>



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<p align=right style='text-align:right;line-height:12.0pt'>
<font face="Times New Roman"><b>Exhibit 10.3</b></font></p>

<p align=center style='text-align:center;line-height:12.0pt'>
<font face="Times New Roman"><b>&nbsp;</b></font></p>

<p align=center style='text-align:center;line-height:12.0pt'>
<font face="Times New Roman"><b>&nbsp;</b></font></p>

<p align=center style='text-align:center;line-height:12.0pt'>
<font face="Times New Roman"><b>&nbsp;EMPLOYMENT AGREEMENT</b></font></p>





<p align=center style='text-align:center;line-height:12.0pt'>
<font face="Times New Roman">dated as of</font></p>





<p align=center style='text-align:center;line-height:12.0pt'>
<font face="Times New Roman">April 21, 2008</font></p>





<p align=center style='text-align:center;line-height:12.0pt'>
<font face="Times New Roman">between</font></p>





<p align=center style='text-align:center;line-height:12.0pt'>
<font face="Times New Roman"><b>MACY'S CORPORATE SERVICES, INC.</b></font></p>





<p align=center style='text-align:center;line-height:12.0pt'>
<font face="Times New Roman">and</font></p>





<p align=center style='text-align:center;line-height:12.0pt'>
<font face="Times New Roman"><b>KAREN M. HOGUET</b></font></p>



<font face="Times New Roman">



<b><u><br
clear=all style='page-break-before:always'>
</u></b>



</font>



<p align=center style='text-align:center;line-height:24.0pt'>
<font face="Times New Roman"><b><u>EMPLOYMENT AGREEMENT</u></b></font></p>



<p style='line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS AGREEMENT, made in the City of Cincinnati and State of Ohio, as of&nbsp; April
21, 2008 &nbsp;between <b>MACY'S CORPORATE SERVICES, INC., </b>&nbsp;a Delaware
corporation, (hereinafter called the &quot;Employer&quot;), and <b>KAREN M.
HOGUET</b> (hereinafter called the &quot;Employee&quot;).</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In consideration of the premises,
it is agreed by and between the parties hereto as follows:</font></p>

<p align="center"><b><font face="Times New Roman">ARTICLE I</font></b></p>

<p align=center style='text-align:center;line-height:24.0pt'>
<font face="Times New Roman"><b><u>EMPLOYMENT</u></b></font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Term
and Duties</u>.</i></b>&nbsp; The Employer shall employ the Employee, and the
Employee shall serve the Employer, as an executive for the period (the
&quot;Term&quot;) beginning on the date of this Agreement and ending on the
later of (a)&nbsp;the date set forth on Exhibit&nbsp;A hereto and (b)&nbsp;any
later date to which the Term may have been extended by agreement of the
parties.&nbsp; During the Term the Employee shall faithfully and in conformity with
the directions of the Board of Directors of the Employer (the
&quot;Board&quot;) or its delegate perform the duties of his employment and
shall devote to the performance of such duties his full time and attention.&nbsp;
During the Term the Employee shall serve in the office or offices of the
Employer to which the Board may from time to time elect or appoint him.&nbsp;&nbsp; The
Employee shall be excused from performing any services hereunder during periods
of temporary incapacity and during vacations in accordance with the Employer's
disability and vacation policies.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Compensation</u>.</i></b>&nbsp;
In consideration of his services during the Term, the Employer shall pay the
Employee cash compensation at an annual rate not less than the greater of his
current base salary as set forth on Exhibit&nbsp;A hereto or the base salary of
the Employee most recently approved by the Board or its delegate (&quot;Base
Compensation&quot;).&nbsp; Employee's Base Compensation shall be subject to such
increases as may be approved by the Board or its delegate.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Payment
Schedule</u>.</i></b>&nbsp; The Base Compensation specified in Section&nbsp;1.2
hereof shall be payable as current salary, in installments not less frequently
than monthly, and at the same rate for any fraction of a month unexpired at the
end of the Term.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Expenses</u>.</i></b>&nbsp;
To support Employee's performance of his duties hereunder, the Employee shall
be allowed reasonable traveling expenses and shall be furnished office space,
assistance and accommodations suitable to the character of his position with
the Employer and adequate for the performance of his duties hereunder.</font></p>

<p style="line-height: 24pt"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Termination
in Case of Disability</u>.</i></b>&nbsp; The Employee shall not be in breach of this
Agreement if he shall fail to perform his duties hereunder because of physical
or mental disability.&nbsp; If for a continuous period of 12 months during the Term
the Employee fails to render services to the Employer because of the Employee's
physical or mental disability, the Board or its delegate may end the Term prior
to its stated termination date.&nbsp; If there should be any dispute between the
parties as to the Employee's physical or mental disability at any time, such
question shall be settled by the opinion of an impartial reputable physician
agreed upon for the purpose by the parties or their representatives, or failing
agreement within 10 days of a written request therefore by either party to the
other, then one designated by the then president of the local Academy of
Medicine.&nbsp; The written opinion of such physician as to the matter in dispute
shall be final and binding on the parties.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font> </p>

<p style='text-align:justify;line-height:24.0pt;text-autospace:
none'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Termination of Services and Compliance
with Section 409A</u>.</i></b>&nbsp; If the Employer notifies the Employee that his
services will no longer be required as of a specified date (the &quot;Separation
from Service Date&quot;) during the Term, the Employee shall cease providing
services as of the Separation from Service Date and will be entitled (except as
otherwise provided in Section 1.5 or Section 1.7 hereof) to severance payments
in the same amounts and on the same schedule as the Base Compensation payments
he would have received for the remainder of the Term.&nbsp; For purposes of Section 409A
of the Internal Revenue Code and this Agreement: </font> </p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-align:justify;text-indent:-.25in;line-height:24.0pt;
text-autospace:none'><font face="Times New Roman">(a)&nbsp;&nbsp;&nbsp; each severance payment will be considered
a separate payment and not one of a series of payments; and </font> </p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-align:justify;text-indent:-.25in;line-height:24.0pt;
text-autospace:none'><font face="Times New Roman">(b)&nbsp;&nbsp; if the Employee is a &quot;specified
employee&quot; for purposes of Section 409A,&nbsp; the Employer will delay payment
of severance payments (the &quot;Delayed Payments&quot;), if any, that would
otherwise be payable </font> </p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-.25in;line-height:24.0pt;
text-autospace:none'><font face="Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; before the end of the first day of the
seventh month after the Separation from Service Date, <u>and</u> </font> </p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-.25in;line-height:24.0pt;
text-autospace:none'><font face="Times New Roman">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; after the later of
</font> </p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.25in;text-align:justify;text-indent:-1.25in;line-height:24.0pt;
text-autospace:none'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the date which is two
and one-half months after the end of the fiscal year of the Employer in which
the Separation from Service Date occurs and </font> </p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.25in;text-align:justify;text-indent:-1.25in;line-height:24.0pt;
text-autospace:none'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
March 15 of the year
following the year in which the Separation from Service Date occurs. </font> </p>

<p style="line-height: 24pt"><font face="Times New Roman">Delayed Payments, if any, will be paid on the first day of
the seventh month following the Separation from Service Date, with interest
calculated on each Delayed Payment based on the prime rate reported in the Wall
Street Journal on the date the first Delayed Payment was otherwise due.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Mitigation</u>.
</i></b>&nbsp;If the Employee receives notice from the Employer pursuant to Section
1.6 hereof, the Employee (subject to Section 2.2 hereof) shall be free to
become actively engaged with another business and shall use his best efforts to
find other comparable employment.&nbsp; Upon the payment to the Employee of
compensation for employment or other services by any unaffiliated third party,
the Employee shall automatically cease to be an employee of the Employer.&nbsp; The
Employee shall promptly notify the Employer of any such employment or other
services and of the compensation received, to be received or receivable from
his subsequent employer or such other party attributable to the Term.&nbsp; All
severance payments otherwise payable to the Employee by the Employer under this Agreement during the remainder of the Term shall
be reduced to the extent of his similar compensation received, to be received
or receivable from such other employment or other services.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Termination
for Cause</u>.</i></b>&nbsp; The Employer may terminate the employment of the Employee
and this Agreement and all of its obligations hereunder, except for obligations
accrued but unpaid to the effective date of termination, for Cause upon notice
given pursuant to this Section.&nbsp; As used in this Agreement, the term
&quot;Cause&quot; shall mean:</font></p>

<p style='margin-left:1.5in;text-indent:-.5in'><font face="Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an intentional act of fraud, embezzlement, theft or any other material
violation of law in connection with the Employee's duties or in the course of
his employment with the Employer;</font></p>

<p style='margin-left:1.5in;text-indent:-.5in'><font face="Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;intentional wrongful damage to material assets of the Employer;</font></p>

<p style='margin-left:1.5in;text-indent:-.5in'><font face="Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
intentional wrongful disclosure of material confidential information of
the Employer;</font></p>

<p style='margin-left:1.5in;text-indent:-.5in'><font face="Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;intentional wrongful engagement in any competitive activity which would
constitute a material breach of the duty of loyalty; or</font></p>

<p style='margin-left:1.5in;text-indent:-.5in'><font face="Times New Roman">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;intentional breach of any stated material employment policy of the
Employer.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No
act, or failure to act, on the part of an Employee shall be deemed
&quot;intentional&quot; if it was due primarily to an error in judgment or
negligence, but shall be deemed &quot;intentional&quot; only if done, or
omitted to be done, by the Employee not in good faith and without reasonable
belief that his action or omission was in or not opposed to the best interest
of the Employer.&nbsp; Failure to meet performance standards or objectives of the
Employer shall not constitute Cause for purposes hereof.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Election
of Benefits</u>.</i></b>&nbsp; If the Employee receives notice from the Employer
pursuant to Section&nbsp;1.6 hereof, the Employee shall have the right to elect
to receive (in lieu of the payments hereunder specified in such
Section&nbsp;1.6) any benefits that may be payable to him pursuant to any
severance plan of the Employer applicable to him.&nbsp; If no such election is made,
the amounts specified in such Section&nbsp;1.6 shall be payable as specified
therein, no benefit shall be payable to the Employee under such severance plan,
and the Employee hereby expressly waives any benefits that might otherwise be
due him under such severance plan.</font></p>

<p style="line-height: 24pt"><font face="Times New Roman">This Agreement has no impact upon any election made by the
Employee to participate in or decline participation in any other benefit plans
or programs made available by the Employer, including but not limited to the
Employer's early dispute resolution program, Solutions InSTORE.&nbsp; The Employee
and Employer's rights and obligations for the purposes of such other benefit
plans or programs shall be governed by the terms and conditions of said benefit
plans and programs. </font> </p>

<p align=center style='text-align:center;line-height:24.0pt'>
<font face="Times New Roman"><b>ARTICLE II</b></font></p>

<p align=center style='text-align:center;line-height:24.0pt'>
<font face="Times New Roman"><b><u>CERTAIN OBLIGATIONS OF THE EMPLOYEE</u></b></font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>No
Participation in Other Businesses</u>.</i></b>&nbsp; During the Term (except as
otherwise expressly provided in Section&nbsp;1.7 hereof) the Employee shall
not, without the consent of the Board or its delegate, become actively
associated with or engaged in any business other than that of the Employer or a
division or affiliate of the Employer, and he shall do nothing inconsistent
with his duties to the Employer.&nbsp; If the Employee shall breach his obligations
under this Section, he shall promptly reimburse the Employer for any monies
paid by the Employer in connection with his relocation during the Term or in
contemplation of the signing of this Agreement, including, without limitation,
any bonus or relocation expenses paid for or incurred by the Employer,
including, without limitation, carrying costs for property purchased from or on
behalf of the Employee.&nbsp; Any such reimbursement shall be in addition to any
other remedy for breach of this Agreement that the Employer may be entitled to
at law or in equity.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Trade
Secrets and Confidential Information</u>.</i></b>&nbsp; Employee shall not (either
during the Term or thereafter) without the consent of the Employer disclose to
anyone outside of the Employer, or use in other than the Employer's business,
trade secrets or confidential information relating to the Employer's business
in any way obtained by him while employed by the Employer.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Noncompetition</u>.</i></b>&nbsp;
It is recognized by the Employee and the Employer that Employee's duties
hereunder will entail the receipt of trade secrets and confidential
information, which include not only information concerning the Employer's
current operations, procedures, suppliers and other contacts, but also its
short&#8209;range and long&#8209;range plans, and that such trade secrets and
confidential information have been developed by the Employer and its affiliates
at substantial cost and constitute valuable and unique property of the
Employer.&nbsp; Accordingly, the Employee acknowledges that the foregoing makes it
reasonably necessary for the protection of the Employer's business interests
that the Employee not compete with the Employer or any of its affiliates during
the Term and for a reasonable and limited period thereafter.&nbsp; Therefore, during
the Term and for a period of one year thereafter, the Employee shall not have
an investment of $100,000 or more in a Competing Business (as hereinafter
defined) and shall not render personal services to any such Competing Business
in any manner, including, without limitation, as owner, partner, director,
trustee, officer, employee, consultant or advisor thereof.&nbsp; The noncompete
provisions of this section shall not be applicable to Employee if he has been notified
pursuant to Section&nbsp;1.6 hereof that his services will no longer be
required during the Term or if Employee has been advised that his services will
no longer be required after the expiration of the Term.&nbsp; </font> </p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If
the Employee shall breach the covenants contained in this Section&nbsp;2.3 or
in Section&nbsp;2.2 hereof, the Employer shall have no further obligation to
make any payment to the Employee pursuant to this Agreement and may recover
from the Employee all such damages as it may be entitled to at law or in equity.&nbsp;
In addition, the Employee acknowledges that any such breach is likely to result
in immediate and irreparable harm to the Employer for which money damages are
likely to be inadequate.&nbsp; Accordingly, the Employee consents to injunctive and
other appropriate equitable relief upon the institution of proceedings
therefore by the Employer in order to protect the Employer's rights hereunder.&nbsp;
Such relief may include, without limitation, an injunction to prevent the
Employee from disclosing any trade secrets or confidential information
concerning the Employer to any Competing Business, to prevent any Competing
Business from receiving from the Employee or using any such trade secrets or
confidential information and/or to prevent any such Competing Business from
retaining or seeking to retain any other employees of the Employer.&nbsp; Employer
agrees, however, that it will not seek injunctive relief for the purposes of
preventing Employee from competing with Employer after the expiration of the
Term.&nbsp; The provisions of the foregoing sentence shall not apply, however, to
injunctions of the type described in the preceding sentence.&nbsp; </font> </p>

<p style='margin-left:1.5in;text-indent:-.5in'><font face="Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this Agreement, the term &quot;affiliate&quot; shall mean,
with respect to a particular person, a person that directly, or indirectly through
one or more intermediaries, controls, or is controlled by, or is under common
control with, such person.</font></p>

<p style='margin-left:1.5in;text-indent:-.5in'><font face="Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As used in this Agreement, the term &quot;Competing Business&quot; shall
mean any business which:</font></p>

<p style='margin-left:2.0in;text-indent:-.5in'><font face="Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at the time of determination, is substantially similar to the whole&nbsp;&nbsp;&nbsp;&nbsp;
or a substantial part of the business conducted by the Employer or any of its
divisions or affiliates;</font></p>

<p style='margin-left:2.0in;text-indent:-.5in'><font face="Times New Roman">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at the time of determination, is operating a store or stores which,
during its or their fiscal year preceding the determination, had aggregate net
sales, including sales in leased and licensed departments, in excess of
$10,000,000, if such store or any of such stores is or are located in a city or
within a radius of 25 miles from the outer limits of a city where the Employer,
or any of its divisions or affiliates, is operating a store or stores which,
during its or their fiscal year preceding the determination, had aggregate net
sales, including sales in leased and licensed departments, in excess of
$10,000,000; and</font></p>

<p style='margin-left:2.0in;text-indent:-.5in'><font face="Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;had aggregate net sales at all its locations, including sales in leased
and licensed departments and sales by its divisions and affiliates, during its
fiscal year preceding that in which the Employee made such an investment
therein, or first rendered personal services thereto, in excess of $25,000,000.</font></p>

<p style='text-align:justify;text-indent:1.0in;line-height:
24.0pt'><font face="Times New Roman">2.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Conflicts of Interest</u>.</i></b>&nbsp; The Employee shall not engage in any activity that would
violate the Conflict of Interest or Business Ethics Statement signed from time
to time by the Employee.</font></p>

<p style='margin-left:0in;text-align:justify;text-indent:1.0in;
line-height:24.0pt'><font face="Times New Roman">2.5 <b><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Solicitation.</u>&nbsp;&nbsp; </i></b>During the term and for a period of one
year thereafter&nbsp; (such period is referred to as the &quot;No Recruit Period&quot;) the
employee will not solicit, either directly or indirectly, any person that he or
she knows or should reasonably know to be an employee of Macy's, Inc. or any of
its subsidiaries, divisions or affiliates (collectively referred to in this
Agreement as the &quot;Macy's Affiliates&quot;) (whether any such employees are now or
hereafter through the No Recruit Period so employed or engaged) to terminate
their employment with any of the Macy's Affiliates.&nbsp; The foregoing undertaking
is not intended to limit any legal rights or remedies that any of the Macy's
Affiliates may have under common law with regard to any interference by
Employee at any time with the contractual relationship the Macy's Affiliates
may have with any of their employees.</font></p>





<p align=center style='text-align:center;line-height:24.0pt'>
<font face="Times New Roman"><b>ARTICLE III</b></font></p>

<p align="center"><u><b><font face="Times New Roman">MISCELLANEOUS</font></b></u></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Assignment</u>.</i></b>&nbsp;
This Agreement may be assigned by the Employer to any of its affiliates.&nbsp; This
Agreement shall not otherwise be assignable by the Employer without the consent
of the Employee, except that, if the Employer shall merge or consolidate with,
or transfer all or any substantial portion of its assets, including goodwill,
to another corporation or other form of business organization, this Agreement
shall (or, in the case of any such transfer, may) be assigned to and shall bind
and run to the benefit of the successor of the Employer resulting from such
merger, consolidation or transfer.&nbsp; The Employee may not assign, pledge or
encumber his interest in this Agreement or any part hereof.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Governing
Law</u>.</i></b>&nbsp; This Agreement has been executed on behalf of the Employer by
an officer of the Employer located in the City of Cincinnati, Ohio.&nbsp; This
Agreement and all questions arising in connection herewith shall be governed by
the internal substantive laws of the State of Ohio.&nbsp; The Employer and the
Employee each consent to the jurisdiction of, and agree that any controversy
between them arising out of this Agreement shall be brought in, the United
States District Court for the Southern District of Ohio, Western Division; the
Court of Common Pleas for Hamilton County, Ohio; or such other court venued
within Hamilton County, Ohio as may have subject matter jurisdiction over the
controversy.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Severability</u>.</i></b>&nbsp;
If any portion of this Agreement is held to be invalid or unenforceable, such
holding shall not affect any other portion of this Agreement.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Entire
Agreement</u>. </i></b>&nbsp;This Agreement comprises the entire agreement between
the parties hereto and as of the date hereof, supersedes, cancels and annuls
any and all prior agreements between the parties hereto.&nbsp; This Agreement may
not be modified, renewed or extended orally, but only by a written instrument
referring to this Agreement and executed by the parties hereto.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Gender
and Number</u>.</i></b>&nbsp; Words in the masculine herein may be interpreted as
feminine or neuter, and words in the singular as plural, and vice versa, where
the sense requires.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Notices</u>.</i></b>&nbsp;
Any notice or consent required or permitted to be given under this Agreement
shall be in writing and shall be effective when given by personal delivery or
five business days after being sent by certified U.S. mail, return receipt
requested, to the Secretary of Macy's, Inc. at its principal place of business
in the City of Cincinnati or to the Employee at his last known address as shown
on the records of the Employer.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Withholding
Taxes</u>.</i></b>&nbsp; The Employer may withhold from any amounts payable under
this Agreement all federal, state, city or other taxes as shall be required pursuant
to any law or governmental regulation or ruling.</font></p>

<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i><u>Waiver
and Release</u>.</i></b>&nbsp; In consideration of the Employer's entering into this
Agreement, and the receipt of other good and valuable consideration, the
sufficiency of which is expressly acknowledged, the Employee, for himself and
his successors, assigns, heirs, executors and administrators, hereby waives and
releases and forever discharges the Employer and its affiliates and their
officers, directors, agents, employees, shareholders, successors and assigns
from all claims, demands, damages, actions and causes of action whatsoever
which he now has on account of any matter, whether known or unknown to him and
whether or not previously disclosed to the Employee or the Employer, that
relates to or arises out of (a)&nbsp;any existing or former employment
agreement (written or oral) entered into between the Employee and the Employer
or any of its affiliates (or any amendment or supplement to any such
agreement), (b)&nbsp;any agreement providing for a payment or payments or
extension of the employment relationship triggered by a merger or sale or other
disposition of the stock or assets or restructuring of the Employer or any
affiliate of the Employer, or (c)&nbsp;any applicable severance plan. </font> </p>

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<p style='text-align:justify;line-height:24.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN WITNESS WHEREOF, the parties hereto
have hereunto and to a duplicate hereof set their signatures as of the day and
year first above written.</font></p>





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  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify'><font face="Times New Roman"><b>MACY'S CORPORATE SERVICES, INC.</b></font></p>
  </td>
 </tr>
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  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=223 valign=top style='width:167.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify'><font face="Times New Roman">April
  21, 2008</font></p>
  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify'><font face="Times New Roman">By:&nbsp;
  <u>/s/ Dennis J. Broderick</u></font></p>
  </td>
 </tr>
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  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dennis
  J. Broderick</font></p>
  </td>
 </tr>
 <tr>
  <td width=223 valign=top style='width:167.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify'><font face="Times New Roman">Title:&nbsp;
  President<br>
  <br>
  <br>
  <br>
&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=223 valign=top style='width:167.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
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  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=223 valign=top style='width:167.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=223 valign=top style='width:167.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify'><font face="Times New Roman"><u>March 27, 2008</u></font></p>
  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify'><font face="Times New Roman"><u>/s/ Karen M. Hoguet</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=223 valign=top style='width:167.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;DATE</font></p>
  </td>
  <td width=415 valign=top style='width:311.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify'><font face="Times New Roman"><b>KAREN M. HOGUET</b></font></p>
  </td>
 </tr>
</table>



<font face="Times New Roman"><br>
<br>
&nbsp;</font><p><font face="Times New Roman">



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</font></p>




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 style='border-collapse:collapse'>
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  <p align=center style='text-align:center;line-height:12.0pt'>
  <font face="Times New Roman"><b><u>EXHIBIT A<br>
&nbsp;</u></b></font></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p align=center style='text-align:center;line-height:12.0pt'>
  <font face="Times New Roman">to<br>
&nbsp;</font></p>
  </td>
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  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p align=center style='text-align:center;line-height:12.0pt'>
  <font face="Times New Roman">EMPLOYMENT AGREEMENT<br>
&nbsp;</font></p>
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  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p align=center style='text-align:center;line-height:12.0pt'>
  <font face="Times New Roman">April 21, 2008<br>
  <br>
&nbsp;</font></p>
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  </td>
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 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify;line-height:12.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Karen
  M. Hoguet<br>
&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify;line-height:12.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End
  of
  Term:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June
  30, 2011<br>
&nbsp;</font></p>
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  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='text-align:justify;line-height:12.0pt'><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base
  Compensation:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$800,000</font></p>
  </td>
 </tr>
</table>





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