0000950152-06-003165 Sample Contracts

DEPARTMENT STORES, INC. 7 West Seventh Street - Cincinnati, Ohio 45202 August 22, 2005 Citibank, N.A. 701 E. 60th North Sioux Falls, South Dakota 57104 Attention David Zimbeck Ladies and Gentlemen:
Federated Department Stores Inc /De/ • April 13th, 2006 • Retail-department stores • Delaware

Reference is made to the Purchase, Sale and Servicing Transfer Agreement, dated as of June 1, 2005 (as amended, supplemented or otherwise modified from time to time, the “Purchase Agreement”), among Citibank, N.A., Federated Department Stores, Inc., FDS Bank and Prime II Receivables Corporation. Unless otherwise defined herein, capitalized terms used herein are used as defined in the Purchase Agreement.

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NONQUALIFIED STOCK OPTION AGREEMENT
Nonqualified Stock Option Agreement • April 13th, 2006 • Federated Department Stores Inc /De/ • Retail-department stores • Delaware

This AGREEMENT (the “Agreement”) is made as of <<GRANT DATE>> (the “Date of Grant”) by and between FEDERATED DEPARTMENT STORES, INC., a Delaware corporation (the “Company”), and «NAME» (the “Optionee”).

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