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                                                                EXHIBIT 10.31(b)

                                                               EXECUTION VERSION

                                 AMENDMENT NO. 1

      This AMENDMENT NO. 1 to the Agreements (as hereinafter defined) (this
"Amendment"), dated as of December 20, 2006, is made by and among Saks
Incorporated, a Tennessee corporation ("Saks"), The Bon-Ton Stores, Inc., a
Pennsylvania corporation ("Bon-Ton"), and Belk, Inc, a Delaware corporation
("Belk").

                                   WITNESSETH:

      WHEREAS, Saks and Parisian Stores, Inc., an Alabama corporation
("Parisian") are parties to that certain Product Sourcing Agreement, dated as of
September 6, 2006 (the "Belk Product Sourcing Agreement");

      WHEREAS, Parisian has been merged with and into Belk and, as a consequence
of that merger, Belk is the successor in interest to Parisian under the Belk
Product Sourcing Agreement;

      WHEREAS, Bon-Ton and Belk are parties to that certain Private Brands
Agreement, dated as of October 30, 2006, and effective as of October 29, 2006
(the "Bon-Ton Private Brands Agreement," and together with the Belk Product
Sourcing Agreement, the "Agreements");

      WHEREAS, Saks and Belk desire to amend the Belk Product Sourcing
Agreement; and

      WHEREAS, Belk and Bon-Ton desire to amend the Bon-Ton Private Brands
Agreement.

      NOW, THEREFORE, in consideration of the premises and mutual agreements
herein set forth, and intending to be legally bound hereby, the parties hereto
agree that each of the Belk Product Sourcing Agreement and the Bon-Ton Private
Brands Agreement shall be and hereby is amended as follows:

      1. Amendment to the Bon-Ton Private Brands Agreement. Belk and Bon-Ton
acknowledge and agree that Exhibit B to the Bon-Ton Private Brands Agreement is
hereby amended and restated to read in its entirety as set forth in Attachment I
hereto.

      2. Amendment to Belk Product Sourcing Agreement. Saks and Belk acknowledge
and agree that Section 3(a) of the Belk Product Sourcing Agreement is hereby
amended and restated to read in its entirety as follows:

            "(a) Minimum Payment. In consideration of Supplier's commitment to
      continue sourcing Licensed Articles and to delegate its sourcing rights
      hereunder, during the Term, Retailer shall pay to Supplier in addition to
      the cost of Licensed Articles sourced from Supplier or purchased directly
      from Authorized Manufacturers the total sum of $698,642 ("Minimum
      Payment") payable in installments as follows:

            (i) with respect to the period commencing on the Effective Date and
            concluding September 30, 2006, the sum of $125,575;

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            (ii) with respect to the Calendar Quarter commencing October 1,
            2006, and concluding December 31, 2006, the sum of $114,219; and

            (iii) with respect to the period commencing on January 1, 2007 and
            concluding December 31, 2007, the sum of $458,848 payable in
            Quarterly installments of $114,712."

      3. Agreements as Amended. The term "Agreement" as used in the Belk Product
Sourcing Agreement shall be deemed to refer to the Belk Product Sourcing
Agreement as amended hereby, the term "Agreement" as used in the Bon-Ton Private
Brands Agreement shall be deemed to refer to the Bon-Ton Private Brands
Agreement as amended hereby, and this Amendment shall be effective as of October
28, 2006, as if executed on such date. It is expressly understood and agreed
that except as provided above, all terms, conditions and provisions contained in
the Belk Product Sourcing Agreement and the Bon-Ton Private Brands Agreement
shall remain in full force and effect without any further change or modification
whatsoever.

      4. Full Force and Effect. If any term, provision, covenant or restriction
of this Amendment is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Amendment, the Belk Product
Sourcing Agreement and the Bon-Ton Private Brands Agreement, shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

      5. Governing Law. This Amendment shall be governed by and construed in
accordance with the internal laws of the State of New York without giving effect
to the principles of conflicts of law thereof except Section 5-1401 of the New
York General Obligations Law.

      6. Execution in Counterparts. This Amendment may be executed in two or
more counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

                     [Remainder of Page Intentionally Blank]

                                      -2-

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      IN WITNESS WHEREOF, the parties have caused this Amendment to be duly
executed as of the day and year first above written.

                                SAKS INCORPORATED

                                By: /s/ Charles J. Hansen
                                    -----------------------------------------
                                    Name:  CHARLES J. HANSEN
                                    Title: Executive vice President

                                THE BON-TON STORES, INC.

                                BY:  /s/ Keith E. Plowman
                                     -----------------------------------------
                                     Name: Keith E. Plowman
                                     Title: E.V.P./C.F.O.

                                BELK, INC.

                                BY:  /s/ Paul Thum Suden
                                     ---------------------------------------
                                     Paul Thum Suden
                                     Executive Vice Presidentexv10w1

 

EXHIBIT 10.1

THIRD PARTY EQUITY COMMITMENT LETTER

April 15, 2007

J.C. Flowers II L.P.

     Re: Equity Commitment 

Ladies and Gentlemen:

     The undersigned investor (the “Investor”) understands that J.C. Flowers II L.P.
(“Flowers”) is planning to form or cause to be formed one or more co-investment vehicles
(“Co-Investment Vehicles”) to participate alongside Flowers and certain other investors in
an acquisition of a company code named “Mustang” that Flowers has discussed with Investor (the
“Company”). Investor further understands that a Flowers designee will be the general
partner and managing member of each Co-Investment Vehicle and will have full control over any
voting rights in the entity that makes the acquisition.

          (1) Commitment. If a Flowers affiliate (“Parent”) enters into an Agreement
and Plan of Merger (“Merger Agreement”) to acquire the Company, Investor hereby agrees,
subject to the satisfaction or waiver by Parent of each of the conditions set forth in the Merger
Agreement, to invest at the closing of the acquisition (the “Closing”) in the equity of one
or more Co-Investment Vehicles up to an aggregate amount equal to the amount set forth opposite the
word “Commitment” on the signature page hereof (the “Commitment”).

          (2) Reduction of Commitment. If an amount (“Eligible Sell Down Amount”) is
set forth opposite the phrase “Eligible Sell Down Amount” on the signature page hereof, Flowers
will seek to find other investors to make investments, at a per unit of investment price equal to
Investor’s per unit of investment price divided by 0.95, of up to an amount that will net the
Co-Investment Vehicles (after payment of a 5% fee) the Eligible Sell Down Amount that would
otherwise have been invested by Investor and, to the extent Flowers is successful in doing so,
Flowers will cause the Co-Investment Vehicles to pay Investor that 5% fee. Investor understands
that Flowers will have no liability of any kind if it is not successful in finding other investors
to make any or all of these investments, and to the extent Flowers does not find other investors to
invest an amount that nets the Co-Investment Vehicles the full
Eligible Sell Down Amount that

 

 

would otherwise have been invested by Investor, Investor shall remain responsible for making
those investments.

          (3) Termination Fee Sharing Provisions. If the Merger Agreement is executed and later
terminated and the Company pays a termination fee in connection therewith, Flowers shall pay to
Investor its Pro Rata Share of the part of the termination fee Flowers nets after paying its out of
pocket expenses incurred in connection with the Merger and the other transactions contemplated by
the Merger Agreement. If the Merger Agreement is executed and later terminated and Flowers pays
the Company a termination fee in connection therewith, Investor shall pay to Flowers its Pro Rata
Share of the amount of the termination fee that Flowers pays. As used herein, “Pro Rata
Share” means the amount of the Commitment hereunder divided by the total commitment
that Flowers had to purchase stock of Parent pursuant to its equity commitment letter with Parent,
as in effect immediately prior to the time the Merger Agreement was terminated.

          (4) Representations. Investor hereby represents warrants and covenants to Flowers
that it has made its own due diligence investigation of the Company and the transactions
contemplated hereby and is not relying on Flowers for advice in making its decision to invest in
any Co-Investment Vehicles. Investor understands that the final structure for the equity and debt
financing of the transaction contemplated by the Merger Agreement has not yet been determined and
agrees that Flowers or its designee shall have full discretion and authority to determine such
structure and the terms of the investment made pursuant to the Commitment (so long as those terms
are not materially inconsistent with the terms contained in this letter).

          (5) Termination. This letter and the commitment of Investor to make investments
hereunder will terminate automatically and immediately if the Merger Agreement has not been
executed by May 31, 2007 and will also terminate automatically and immediately upon termination of
the Merger Agreement in accordance with its terms.

          (6) Entire Agreement. This letter constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings, both oral and written, between the parties with respect to such subject matter.

          (7) Governing Law; Jurisdiction; Waiver of Trial by Jury. This letter shall be
governed by and construed in accordance with the laws of the State of Delaware, without regard to
the conflicts of law rules of such State. The parties hereto agree that any suit, action or
proceeding seeking to enforce any provision of, or based on any matter arising out of or in
connection with, this letter or the transactions contemplated hereby shall be brought in any
federal court located in the State of Delaware or any Delaware state court, and each of the parties
hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate
courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest
extent permitted by law, any objection that it may now or hereafter have to the laying of the venue
of any such suit, action or proceeding in any such court or that any such suit, action or
proceeding brought in any

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such court has been brought in an inconvenient forum. Process in any such suit, action or
proceeding may be served on any party anywhere in the world, whether within or without the
jurisdiction of any such court. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS LETTER OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

          (8) Assignment. Investor may assign all or a portion of its obligation to purchase or
cause to be purchased the Equity Securities to one or more of its affiliates or to any other Person
approved in advance by Parent, but to no other Person; provided, however, that no
such assignment shall relieve Investor of its obligations under this letter.

          (9) Amendment. No provision of this letter may be amended unless such amendment is in
writing and signed by the parties hereto.

          (10) Counterparts. This letter may be signed in any number of counterparts (including
facsimile counterparts), each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. This letter shall become effective
when each party hereto shall have received a counterpart hereof signed by the other party hereto.
Until and unless each party has received a counterpart hereof signed by the other party hereto,
this letter shall have no effect and no party shall have any right or obligation hereunder (whether
by virtue of any other oral or written agreement or other communication).

[Remainder of page intentionally left blank.]

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	 	Very truly yours,

Enstar Group Limited

 	 
	 	By:  	/s/ Richard J. Harris
 	 
	 	 	Name:  	R.J. Harris 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Commitment: $200,000,000

Eligible Sell Down Amount: $200,000,000

Acknowledged and Accepted as of the date first above written:

J.C. Flowers II L.P.

By:   JCF Associates II L.P., its general partner

By:   JCF Associates II Ltd., its general partner

	 	 	 	 	 
	By:

	 	/s/ J. Christopher Flowers
	 	 
	 

	 	 	 	 
	 

	 	Name: J. Christopher Flowers	 	 
	 

	 	Title: Director	 	 

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