Exhibit 10.46
 
THIRD AMENDMENT
TO
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
 
This Third Amendment to Amended and Restated Employment Agreement (this “Third
Amendment”), dated January 9, 2003, is entered into by and between St. John
Knits, Inc., a California corporation (“Company”), and Marie St. John Gray, an
individual (“Executive”), and amends terms of that certain Amended and Restated
Employment Agreement, dated as of July 14, 1998, as amended, between the Company
and Executive (the “1998 Agreement”). In consideration of the mutual covenants
and agreement set forth herein, the parties hereto agree as follows (all
capitalized terms not defined herein shall have the meanings set forth in the
1998 Agreement).
 
1. Section IV.1(b)(vi) of the 1998 Agreement shall be deleted in its entirety.
 
2. Section IV.5(e) of the 1998 Agreement shall be amended to delete the language
“or 4.1(b)(vi)”.
 
3. Section IV.5(f) of the 1998 Agreement shall be deleted in its entirety.
 
4. Section V.1 shall be amended to replace the notice information for David
Krinsky, Esq. with the following:
 
“Mr. Jim Kelley
Vestar Capital Partners
1225 17th Street, Suite 1660
Denver, Colorado 80202”
 
5. All other provisions contained in Article V of the 1998 Agreement are
incorporated into this Third Amendment by this reference.
 
6. All other terms and conditions of the 1998 Agreement, as amended, shall
remain the same.

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first above written.
 
“Company”
St. John Knits, Inc.,
a California corporation
By:
 
/s/    Roger Ruppert        

--------------------------------------------------------------------------------

   
Roger Ruppert
Executive Vice President and
Chief Financial Officer

 
“Executive”
/s/    Marie St. John Gray        

--------------------------------------------------------------------------------

Marie St. John Gray

 
Approved as to Content:
 

--------------------------------------------------------------------------------

Jim Kelley
Chairman of the Board

2